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HomeMy WebLinkAboutResolution - 2210 - Lease Agreement - Aztec Travel - Space, LIA - 12_13_1985Resolution #2210 December 13, 1985 Agenda Item #12 MH:js RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock a Space Lease by and between the City of Lubbock and Rod Paine d/b/a Aztec Travel, attached herewith, which shall be spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail. Passed by the City Council this 13th day of December 1985. la or AL ARY. A OR ATTEST: naneLLe�tsoya, LALy becretary APPROVED AS TO CONTENT: Marvin Coffee, Di or of v' 'on APPROVED AS TO FORM: Mich Haft, Assistant City Attorney L Resolution #2210 THE STATE OF TEXAS § KNOW ALL MEN BY THESE PRESENTS: COUNTY OF LUBBOCK § SPACE LEASE - TERMINAL BUILDING This Agreement, entered into at Lubbock, Texas, by and between the City of Lubbock, hereinafter referred to as "Lessor," and Rod Paine d/b/a Aztec Travel, hereinafter referred to as "Lessee;" WHEREAS, Lessor owns and operates a public airport desig- nated as Lubbock International Airport herein called "Airport;" and WHEREAS, Lessee desires to conduct a travel agency herein- after referred to as "Agency," in the terminal building at the Lubbock International Airport. ARTICLE I NOW THEREFORE, for and in consideration of the covenants and conditions herein contained and other valuable consideration, the Lessor authorizes the Lessee to exercise the rights, powers and privileges hereinafter set forth and does hereby lease to the Lessee approximately 150 square feet as shown in Exhibit "A", attached herewith and made a part of this Lease for all purposes. The term of this Agreement shall be for a period of one (1) year, commencing commencing three (3) days after Lessee receives notice sent certified mail by Lessor informing Lessee that he may begin occupancy. Such notice shall be sent as soon as practi- cable after the leased space is ready for occupancy. ARTICLE II In consideration of the rights and privileges herein granted, Lessee shall pay to Lessor a rental of Fifteen and 76/100 Dollars ($15.76) per square foot per year adjusted in January 1986 by the CPI. Lessee shall pay to Lessor the rent as set forth in twelve (12) monthly installments payable in advance by the tenth (10th) day of each month. All payments that become due and payable by Lessee shall be made to the City of Lubbock at the office of the Director of Aviation, Lubbock International Airport, Lubbock, Texas. ARTICLE III This Lease is granted subject to the following conditions: 1. Lessee shall use the leased premises solely for the purpose of operating a travel agency. 2. Lessee shall provide such services as are usual and customary in the travel agency business. 3. Lessee's right to operate a travel agency within the terminal building at the Airport shall be nonexclusive. 4. Any property installed or added by Lessee which becomes permanently attached to the premises shall become the property of Lessor upon termination of the Lease Agreement. 5. Lessee will erect no signs and will distribute no advertising matter in the Airport without the prior written consent of the Director of Aviation. Such prior written consent shall not be required for advertising placed by Lessee with Ackerly Airport.Advertising, Inc. or any other party having the right to sell, rent or offer airport terminal advertising space. 6. All of Lessee's business operations and solicita- tions will be confined to the leased premises. 7. The Lessee shall not bind or attempt to bind Lessor for payment of any money in connection with installa- tions, alterations, additions or repairs on the leased premises or any of Lessee's equipment or facilities located on the leased premises and shall not permit any mechanic's, materialmen's, or contractors liens to arise against the premises or any improvements, equipment, machinery or fixtures thereon belonging to the Lessor and Lessee express- ly agrees that it will keep and save the premises and Lessor harmless from all costs and damages resulting from any lien or liens of any character created or that may be asserted through any act or thing done by the Lessee. B. Failure of the Lessee to comply with any require- ment of paragraph 7 shall be cause for immediate termination of this Lease Agreement by Lessor. - 2 - 9. Lessor shall assume no responsibility as to the condition of the leased premises and shall not assume responsibility for maintenance, upkeep, or repair necessary to keep the premises in a safe and serviceable condition. 10. Lessor shall have right to change the location of the leased premises and all costs of moving shall be borne by the Lessee. 11. Lessor shall have the right to approve any con- struction or remodeling by Lessee on the leased premises. ARTICLE IV This Lease is granted subject to the following additional provisions and conditions: 1. The Lease herein granted is subject to any and all applicable laws, ordinances, rules and regulations pertain- ing to the Lubbock International Airport. 2. During the time of war or national emergency the Lessor shall have the right to enter into an agreement with the United States Government for military or naval use of part or all of the landing area, the publicly owned air navigation facilities, and other area or facilities of the Airport. And if any such agreement is executed, the provisions of this instrument, insofar as they are incon- sistent with the provisions of the agreement with the Government, shall be suspended, but rent hereunder shall abate accordingly. 3. This Agreement shall be subordinate to the provisions of any existing or future agreement between Lessor and the United States relative to the operation and maintenance of the Airport, the execution of which has been or may be required as a condition precedent to the expendi- ture of federal funds for the development of the Airport. Should the effect of such agreement with the United States be to take any of the property under lease or substantially destroy the commercial value of Lessee's rights under this Agreement, the Lessor shall not be held liable therefor, but rent hereunder shall abate accordingly. - 3 - 4. All rights, privileges and interests acquired herein by Lessee at the option of the Lessor, following written notice of thirty (30) days, may be suspended if such suspension is found by the Lessor, acting in good faith, to be necessary to secure federal financial aid for the development of the Airport, or further development and provisions of aeronautical operations thereon, but rent hereunder shall abate accordingly. 5. The Lessor, acting by and through the Director of Aviation, or other designated representative shall have the right to inspect the property at all reasonable times during the term of this Lease. 6. Any property of the Lessor or any property for which the City of Lubbock may be responsible, which is damaged or destroyed incident to the exercise of the privileges herein granted or as a result of acts or omis- sions of the employees or agents of Lessee, shall be properly repaired or replaced by the Lessee to the satis- faction of the Lessor and its authorized representatives, or in lieu of such repair or replacement, the Lessee shall, if so required by the Lessor, pay to the Lessor money in any amount deemed sufficient by the Lessor to compensate for the loss sustained by the Lessor by reason of the loss of, damage to or destruction of such property. 7. The Lessee shall be deemed to be an independent contractor and operator responsible to all parties for its respective acts or omissions and Lessor shall in no way be responsible therefor. 8. The Lessee agrees to indemnify, defend and forever save the Lessor, its authorized agents, representatives and employees, harmless from and against any and all penalties, liability, annoyances or loss resulting from claims or court action of any nature arising directly of indirectly out of any acts or omissions of the Lessee, its agents, servants, employees or business visitors under this Agreement. - 4 - 9. The Lessee shall maintain at all times, at its sole expense, insurance with an insurance underwriter acceptable to the Lessor and from one authorized to do business in the State of Texas, against claims of public liability and property damage resulting from Lessee's business activities at the Airport. The amount of insurance coverage shall be not less than FIFTY THOUSAND AND NO/100 DOLLARS ($50,000.00) for property damage as a result of any one event, or less than ONE HUNDRED THOUSAND AND NO/100 DOLLARS ($100,000.00) for personal injury or death of any one person in any one event; or less than THREE HUNDRED THOUSAND AND NO/100 DOLLARS ($300,000.00) for personal injury or death of two (2) or more persons in any one event. Certificates of insurance or other satisfactory evidence shall be filed with the Director of Aviation prior to entry upon the premises by the Lessee. Each policy shall name the Lessor, City of Lubbock, as an additional insured as its interest may appear. Each policy shall provide "It is agreed that insurer shall notify the City of Lubbock, Texas, of any alteration, renewal or cancellation of this policy and that this policy shall remain in full force and effect until ten (10) days after such notice is received by the Director of Aviation." 10. Lessee shall furnish to the Lessor satisfactory evidence that it carries Workmen's Compensation Insurance in accordance with the laws of the State of Texas. 11. The Lessee shall assume responsibility for the payment of all taxes and assessments, license fees and public utility charges levied on the business conducted on the leased premises or becoming due on the property of Lessee used in connection therewith from the date of execution of this Agreement. The Lessee agrees to pay all claims or damages for or on account of water, lights, heat, power, sewage disposal and any other services or utilities furnished to or with respect to the property or any part thereof. The Lessor does not guarantee to furnish utilities - 5 - or utility services in the future. In the event utility service is not furnished for reasons other than repair or installations of lines or nonpayment of charges, Lessee shall have the option to cancel this Lease upon thirty (30) days notice to the Lessor. 12. The Lessee, for himself, his heirs, personal representatives, successors in interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree as a covenant running with the land that in the event facilities are constructed, maintained, or otherwise operated on the said property described in this Lease for a purpose for which a DOT program or activity is extended or for another purpose involving the provision of similar services or benefits, the Lessee shall maintain and operate such facilities and services in compliance with all other requirements imposed pursuant to 49 CFR Part 21, Nondiscrim- ination in Federally Assisted Programs of the Department of Transportation, and as said Regulations may be amended. 13. The Lessee, for himself, his personal representa- tives, successors in interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree as a covenant running with the land that: (1) no person on the grounds of race; color, or natinal origin shall be excluded from participation in, denied the benefits of, or be other- wise subjected to discrimination in the use of said facili- ties, (2) that in the construction of any improvements on, over, or under such land and the furnishing of services thereon, no person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or otherwise be subject to discrim- ination, (3) that the Lessee shall use the premises in compliance with all other requirements imposed by or pursuant to 49 CFR Part 21, Nondiscrimination in Federally Assisted Programs of the Department of Transportation, and as said Regulations may be amended. - 6 - 14. The Lessee will conduct its activities and operate its facilities in accordance with the requirements of Section 504 of the Rehabilitation Act of 1973 and will assure that no qualified handicapped person shall, solely by reason of his or her handicap, be excluded from participa- tion in, be denied the benefits of, or otherwise be subject- ed to discrimination, including discrimination in employ- ment, under any program or activity of the Lessee. 15. The Lessee acknowledges that it is informed that Texas Law prohibits contracts between Lessor and its "officers" and "employees," and that the prohibition extends to an officer and employee of City agencies such as City - owned utilities and certain City boards and commissions, and to contracts with any partnership, corporation or other organization in which the officer of employee has an interest. Lessee certifies that neither it nor any person having an interest in this contract is an officer or employee of the City of Lubbock or any of its agencies. 16. The Lessee warrants that it has not employed any person employed by the Lessor to solicit or secure this Lease Agreement upon any agreement for a commission, percentage, brokerage or contingent fee. 17. This Lease may not be assigned without the written consent of Lessor, but such consent shall not be unreason- ably withheld. No such assignment or subletting shall affect Lessee's obligations to make all required rental payments hereunder. 18. The failure of the Lessor to insist in any one or more instance upon performance of any of the terms or conditions of this Lease shall not be construed as a waiver or relinquishment of the future performance of any such term or conditions, but the Lessee's obligation with respect to such failure of performance shall continue in full force and effect. 19. Lessee shall provide a complete and proper arrangement for the adequate sanitary handling and disposal - 7 - away from the Airport, of all trash, garbage and other refuse caused as a result of the operation of its business at its sole expense. �O/ Pin the event Lessee remains in possession of the leased premises after the expiration of this Lease Agreement without any written renewal or extension of this Lease, such holding over shall not be deemed as a renewal or extension of this Lease, but shall create only a tenancy from day to day which may be terminated at any time by Lessor. ARTICLE V This Lease Agreement shall terminate at the end of the full term hereof and Lessee shall have no further right or interest in the premises hereby demised except as provided in Article IV, paragraph 20. This Agreement is subject to termination for the reasons set forth below, provided that thirty (30) days written notice is given to the non -terminating party. Rental due hereunder shall be payable only to the effective date of said termination. A. The Lessee may terminate upon the happening of any of the following: 1. The permanent abandonment of the Airport as an air terminal. 2. The issuance by any court of competent jurisdic- tion of an injunction in any way preventing or restraining the use of the Airport and the remaining in force of such injunction for at least thirty (30) days. 3. The breach by the Lessor of any of the terms, covenants or conditions of this Agreement to be kept, performed and observed by the Lessor, and the failure of the Lessor to remedy such breach for a period of sixty (60) days after written notice from the Lessee of the existence of such breach. 4. The assumption by the United States Government, or any authorized agency of same, of the operation, control or use of the Airport and its facilities in such a manner as to substantially restrict the Lessee from operating under the - 8 - terms of this Agreement, if such restriction is to continue or has continued for a period of three (3) months or more. B. The Lessor may terminate upon the happening of any of the following: 1. If the Lessee shall file a voluntary petition of bankruptcy; or, if the proceedings in bankruptcy shall be instituted against it and it is thereafter adjudicated a bankrupt pursuant to such proceedings; or, if a court shall take jurisdiction of Lessee and its assets pursuant to proceedings brought under the provisions of any federal reorganization act; or, if a receiver for Lessee's assets is appointed; or, if Lessee shall be divested of its rights, powers and privileges under this Agreement by other opera- tion of law. 2. If the Lessee shall abandon and discontinue operations under this Agreement. 3. If the Lessee shall default in or fail to make any payments at any time and in the amounts as required of it under this Agreement. 4. If the Lessee shall fail to perform, keep and observe all of the covenants and conditions contained in this Agreement to be performed, kept and observed by it. 5. If the Lessee shall fail to abide by all appli- cable laws, ordinances and rules and regulations of the United States, State of Texas, City of Lubbock or Director of Aviation of the City of Lubbock. 6. If Lessor, acting in good faith, finds termination of the rights, privileges and interests of Lessee acquired under this Lease to be necessary to secure Federal Financial aid for the development of the Airport, or further develop- ment and provisions of aeronautical operations thereon. C. In the event the terminal building at the Lubbock International Airport is damaged by fire or other accidental cause during the term of this Lease Agreement so as to become totally or partially untenantable, Lessor shall have the option to restore the premises to their former condition. If Lessor - 9 - exercises its option to restore the premises, Lessor shall proceed with due diligence. If the damage is so extensive as to amount practically to the total destruction of the utility of the leased premises for the uses expressed in this Lease Agreement, Lessee's obligation to pay rent hereunder shall abate for the time and to the extent that the premises have been rendered untenantable. Should Lessor not exercise its option to restore the premises, this Lease shall terminate, such termination to be effective on the date of damage by fire or other accidental cause, and the rent shall be apportioned to that date. D. Within fifteen (15) days following the date of expira- tion or termination of this Agreement, Lessee shall, as required by Lessor, vacate said premises, remove all property of Lessee and restore the leased premises to as good a condition on such date of expiration or termination as when received, ordinary wear and tear excepted; provided, however, that Lessee's right to remove its property is subject to the condition that Lessee has paid in full all amounts due and owing Lessor under this Lease Agreement. If, after being requested to do so by Lessor, the Lessee shall fail or neglect to do so by Lessor, the Lessee shall fail or neglect to remove said property and so restore the leased premises within fifteen (15) days of said expiration or termina- tion, then at the option of Lessor said property shall either become the property of Lessor without compensation therefor or Lessor may cause the property to be removed and the leased premises to be restored at the expense of Lessee, and no claim for damages against Lessor or its officers, agents or employees shall be created or made on account of such removal and restora- tion. ARTICLE VI 1. Notices to the Lessor required or appropriate under this Lease shall be deemed sufficient if in writing and mailed by registered mail with postage prepaid to the Director of Aviation, Lubbock International Airport, Route 3, Box 201, Lubbock, Texas 79401. - 10 - Notices to the Lessee required or appropriate under this Lease shall be deemed sufficient if in writing and mailed by registered mail with postage prepaid to the Attention of Rod Paine d/b/a Aztec Travel, 4620 50th Street, Lubbock, Texas 79414. 2. Should Lessor institute legal action to collect rentals due under this Lease Agreement or damages for breach of any covenant made herein, a reasonable sum shall be added to the amount of recovery for attorney's fees together with all costs of court. 3. Both parties hereby agree that this instrument consti- tutes the final agreement of the parties and that all other previous agreements, leases and contracts between the parties which pertain to the property described herein are hereby declared null and void. Executed this the 13th day of LESSOR: CITY OF LU BY: ALAN MNRY MAYOR ATTES . Ranette d City Secretary APPROVED AS TO CONTENT: Marvin Coffee Director of Aviation APPROVED AS TO FORM: Mich le Hart Assistant City Attorney December 1985. LESSEE: AZTEr—TRA B Y :2 0,L1 RO PAIN T i l e : GSl LS al ATTEST: Secretary � Nor4h 4? LUM,,OC�, 1NTtF\NF, T LN hL ARILLGRT EXHIBIT A