HomeMy WebLinkAboutResolution - 2392 - Lease Agreement - Aspen Airway - Terminal Space, LIA - 08_14_1986Resolution #2392
August 14, 1986
Agenda Item #32
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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 lease agreement by and between the City of
Lubbock and Aspen Airways for airport terminal space for
ticketing offices and cargo, 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 14th day of August
1986.
.C. MCMINN, MAYOR
ATTEST:
APPROVED AS TO CONTENT:
I iv
Marvin Coffee,/,Zirector of
Aviation
APPROVED AS TO 1Fj,,ORM:a<am'�q- jPU4a-e-
Laura Monroe, Assistant City
Attorney
a
AIRLINE LEASE AGREEMENT
BY AND BETWEEN
THE CITY OF LUBBOCK, TEXAS
AND
ASPEN AIRLINES
}
TABLE OF CONTENTS
PAGE
ARTICLE I - LEASED PREMISES AND USES 1
1.01 -
Description of Exclusive Leased Premises
1
1.02 -
Description of Nonexclusive Use Premises
2
1.03 -
Description of Privileges, Uses and Rights
2
1.04 -
Rights and Privileges Specifically Excluded
7
1.05 -
Right of Ingress and Egress
8
ARTICLE II -
TITLE TO LESSEE
8
2.01 -
Installed Improvements and Property
8
ARTICLE III
- OBLIGATIONS OF CITY
8
3.01 -
Right to Lease Property
8
3.02 -
Maintenance and Operation of Airport
9
3.03 -
Maintenance and Services in Lessee's
Exclusive Space
10
3.04 -
Governmental Facilities
11
3.05 -
Restaurants
11
3.06 -
Ticket Counter
11
3.07 -
Outbound Baggage System
11
ARTICLE IV -
OBLIGATIONS OF LESSEE
12
4.01 -
Maintenance Leased Premises
12
4.02 -
Porter Service
12
4.03 -
Alterations, Additions or Replacements
12
4.04 -
Removal and Demolition
13
4.05 -
Trash and Garbage
13
4.06 -
Taxes and Licenses
13
4.07 -
Rules and Regulations
14
ARTICLE V -
TERM
14
5.01 -
Term
14
ARTICLE VI -
RENTALS AND FEES
14
6.01 -
Rental for Exclusive Terminal Building Space
14
6.02 -
Landing Fee
14
6.03 -
Rental for Common Use Area
15
6.04 -
Rental for Public Address System
17
6.05 -
Aircraft Storage
17
6.06 -
Time of Payment
17
6.07 -
Default for Failure to P'ay Rentals, Fees
and Charges
18
ARTICLE VII-
READJUSTMENT OF RENTALS, FEES, AND
OTHER CHARGES
18
7.01 18
ARTICLE VIII - RIGHTS AND PRIVILEGES RESERVED BY CITY 19
8.01 - Right to Charge Use Fees to Others 19
8.02 - Right to Improve and Protect the Airport 19
ARTICLE IX - INDEMNIFICATION, INSURANCE AND BONDS 20
9.01 - Indemnification, Etc. 20
9.02 - Insurance 21
i
ARTICLE X -
DAMAGE OR DESTRUCTION OF LEASED PREMISES
22
10.01 -
Partial Damage
22
10.01 -
Extensive Damage
22
10.03 -
Complete Destruction
23
10.04 -
Right to Recover Damages
24
10.05 -
Limit of City's Obligations Defined
24
ARTICLE XI -
TERMINATION OF LEASE, CANCELLATION,
ASSIGNMENT AND TRANSFER
24
11.01 -
Termination
24
11.02 -
Cancellation by Lessee
24
11.03 -
Cancellation by City
26
11.04 -
Notice of Termination
27
11.05 -
Assignment and Subletting
28
ARTICLE XII
- PROPERTY RIGHTS UPON TERMINATION
26
12.01 -
Lessee's Right of Removal
28
12.02 -
City's Rights at Termination
28
ARTICLE XIII
- GENERAL PROVISIONS
29
13.01 -
Other Ordinances
29
13.02 -
Arbitration
29
13.03 -
Nondiscrimination,
29
13.04 -
Rules and Regulations
30
13.05 -
Interpretation of Lease
30
13.06 -
Conformity of Lease
30
13.07 -
Invalid Provisions
31
13.08 -
Sponsor's Assurances
31
13.09 -
Consent Not to be Unreasonably Withheld
31
13.10 -
Redelivery of Premises
31
13.11 -
Holding Over
31
13.12 -
Federal Aviation Administration
32
13.13 -
Inspection
32
13.14 -
Nonexclusive
32
13.15 -
Lease Made in Texas
32
13.16 -
Successors
32
13.17 -
Headings
32
13.18 -
Time of Essence
32
13.19 -
Notices
32
0
CERTIFICATED PASSENGER AIRLINE LEASE AGREEMENT
ASPEN AIRLINES, INC.
LUBBOCK INTERNATIONAL AIRPORT
LUBBOCK, TEXAS
THIS LEASE AGREEMENT, made this day of ,
1986, by and, between the City of Lubbock (hereinafter referred to
as "City"), and Aspen Airlines, Inc., a corporation incorporated
under the laws of the State of , with it principal
office at (hereinafter referred to
as "Lessee").
WITNESSETH:
WHEREAS, City owns and operates Lubbock International
Airport, located in Lubbock County, State of Texas (hereinafter
referred to as "Airport"), and
WHEREAS, Lessee is engaged in the busine3s of air transpor-
tation with respect to persons, property and cargo and possess an
Air Carrier Operating Certificate issued by FAA, and
WHEREAS, City is currently operating a terminal building at
said Airport and said building includes space for airline
ticketing and operations facilities, and
WHEREAS, Lessee desires to lease certain premises and
facilities in the terminal building and to obtain certain rights
in connection with and on the Airport,
NOW THEREFORE, for and in consideration of the mutual
covenants hereof, City hereby leases to Lessee and Lessee hereby
hires and takes from City certain exclusive premises (hereinafter
called "Leased Premises"), and certain nonexclusive use facili-
ties, rights and privileges in connection with and on the
Airport, as hereinafter described, upon the terms and conditions
as follows:
ARTICLE I
LEASED PREMISES AND USES
Section 1.01 - Description of Exclusive Leased Premises.
The exclusive Leased Premises shall be comprised of 2,904 square
4 � e
feet, more or less, in the terminal building which are allocated,
more or less, as follows:
Ticket Counter Space 464 square feet
Office and Reservation
Space 676 square feet
Baggage and Cargo Space 1764 square feet
Total Exclusive Leased
Space 2904 square feet
The location of the Leased Premises is designated in red on
Exhibit A attached hereto and by this reference made a part
hereof.
Section 1.02 - Description of Nonexclusive Use Premises. In
addition to the exclusive Leased Premises hereinabove defined,
Lessee is hereby granted the nonexclusive use, in common with
others authorized so to do, of such space and facilities as may
be designated by City in and adjacent to the terminal building,
which space and facilities, without limiting the generality
hereof, shall consist of:
(A) Ground area for the taxiing of aircraft.
(B) Space for a reasonable amount of Lessee's apron
equipment.
(C) Loading gates.
(D) Adequate and reasonably convenient vehicular parking
space for the use by Lessee and its employees. Such
space shall be at locations designated by City in
common with other airport employees and the use thereof
shall be provided at same charge per month as establish-
ed for other airport employees.
Section 1.03 - Description of Privileges, Uses and Rights.
Lessee shall be entitled, in common with others authorized so to
do, to the general use of all public airport facilities and
improvements which now are or may hereafter be connected with or
appurtenant to the Airport, except as hereinafter provided. For
the purpose of this Lease, "public airport facilities" shall
include, but not be limited to, approach areas, runways, taxi-
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ways, aprons, aircraft parking areas, roadways, sidewalks,
navigational and aviational aids, lighting facilities, terminal
facilities, or other public facilities appurtenant to the
Airport.
Lessee's use of said public airport facilities shall be for
the sole purpose of operating a transportation system by aircraft
for the carriage of persons, property, cargo, express and mail
(hereinafter referred to as "Air Transportation"), which use,
without limiting the generality hereof, shall include:
(A) The handling, ticketing, billing and manifesting of
passengers, baggage, cargo, express and mail in Air
Transportation by Lessee or on behalf of any other
Certificated Passenger Air Transportation Company
having a valid Lease with City.
(B) The repairing, maintaining, conditioning, servicing,
testing, parking or storage of aircraft or other
equipment operated by Lessee, or of any other Certi-
ficated Passenger Air Transportation Company. Such
right and the rights referred to in Subparagraphs (C)
and (D) below shall not be construed as authorizing the
conduct of a separate business by Lessee, but shall
permit Lessee to exercise such rights only in connec-
tion with its conduction of Air Transportation.
(C) The training on the Airport of personnel in the
employee of or to be employed by Lessee or any other
Certificated Passenger Air Transportation Company.
(D) The sale, lease, transfer, disposal or exchange of
Lessee's aircraft engines, accessories, and other
equipment or supplies. Said right shall include the
sale, lease, transfer or disposal of any article or
goods used by or bought for use by Lessee in connection
with its conduct of Air Transportation; provided
however, that Lessee shall not:
(1) Sell food or beverages, except for consumption by
passengers on the aircraft and as provided in
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Subparagraph (I) of this Section 1.03 and with the
further exception that food and beverages may be
provided by Lessee to its passengers in its
exclusive leased VIP or Clubrooms.
(2) Sell gasoline, fuel, propellants, greases or other
lubricants except when said products are of a
particular grade desired by others and are not
otherwise available (except to other Certificated
Passenger Air Transportation Companies) at the
Airport.
(E) The servicing by Lessee's employees or others under
control of Lessee of aircraft and other equipment
operated by Lessee on the apron, by truck or otherwise,
with gasoline, oil, greases, lubricants and any other
fuel or propellant or other supplies required by
Lessee. All of which shall include, without limiting
the generality hereof, the right of Lessee to install
and maintain on the Airport subject to terms and
conditions mutually agreeable to the parties hereto
adequate storage facilities for such gasoline, oil,
greases, lubricants and other fuel or propellant or
supplies, together with the necessary pipes, pumps,
motors, filters and other appurtenances incidental to
the use thereof, and the installation and maintenance
of pipes in connection with such facilities as well as
a pipeline or lines between Lessee's source of supply
and said storage facilities. Lessee shall submit to
City for its written approval complete written plans
and specifications for such storage facilities prior to
installation. Lessee's exercise of its rights here-
under shall be subject to the execution by the parties
hereto of a separate Lease on such terms, conditions
and consideration, as may be mutually agreed upon. In
connection with the execution of any such Lease, City
now agrees and hereby becomes obligated to make
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available for Lessee's use adequate and convenient
rights -of -way on the Airport for said pipelines;
provided, however, that Lessee shall be responsible for
the cost of all excavation, resurfacing, construction,
installation, maintenance and operation thereof and
further provided that Lessee shall restore the surface
of the Airport. In the event that Lessee discontinues
the use of said storage facilities or pipelines, Lessee
agrees to remove said storage facilities or pipelines
and restore the surface of the Airport affected by such
removal to their original condition to the satisfaction
of City.
(F) The landing, taking off, flying, taxiing, towing,
parking, loading and unloading of Lessee's aircraft or
other equipment operated by Lessee, used in the
operation of scheduled, shuttle, courtesy, test,
training, inspection, emergency, special charter,
sight-seeing and other flights. All of which shall
incidentally include, without limiting the generality
hereof, the right to load and unload Lessee's aircraft,
or the aircraft of any other Certificated Passenger Air
Transportation Company having a valid Lease with City,
adjacent to a convenient entrance to the terminal
building at loading gates located on the loading apron
at points to be designated by City; provided, however,
that flights carrying cargo or freight only shall load
and unload at convenient and accessible points to be
designated by City.
(G) The loading and unloading of property, cargo, express
and mail at said Airport by such motor vehicles or
other means of conveyance as Lessee may desire or
require in the operation of its Air Transportation
system, with the right to designate the particular
carrier or carriers who shall regularly transport
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Lessee's property, cargo, express and mail to and from
the Airport.
(H) The right to install, maintain and operate, for its own
use, either by Lessee alone, or by Lessee in conjunc-
tion with others who are Lessees at the Airport, or
through a nominee, a message system or other communi-
cation systems between suitable locations. The
installation, maintenance and operation of a message/
communication system shall be without cost to City, and
subject to reasonable rental payments by Lessee to the
City for any space used, as well as the prior written
approval of City as to location, plans and specifica-
tions.
(I) The right to provide food and beverages for consumption
aloft by passengers and crews of Lessee or by passen-
gers and crews of any other certificated passenger
airline or for consumption by said passengers and crews
grounded at the Airport because of weather or mechani-
cal conditions. Such food and beverages may be served
in Lessee's exclusive space when such food and bever-
ages were originally scheduled to be served to such
passengers and crews aloft. Except to the extent
hereinabove specifically provided, nothing in this
Subparagraph (I) shall be deemed to give Lessee the
right on the Airport to maintain or operate a cafe-
teria, restaurant, vending machines, bar or cocktail
lounge for the purpose of selling or in any manner
otherwise providing for the sale of food or beverages
to the public.
(J) The right to place or replace existing signs identify-
ing Lessee's business on and in the terminal building.
Said signs as to size, type and location. A change in
existing signs as to number, general type, size, design
and location shall be subject to the written approval
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of City prior to installation. Such installation and
operation shall be without cost to City.
(K) The right to install, maintain and operate by Lessee
along, by Lessee in conjunction with any other Certi-
ficated Passenger Air Transportation Companies who are
Lessees at the Airport, or through a nominee, such
radio communications, meteorological and aerial
navigation equipment and facilities in or on premises
leased exclusively to Lessee, without cost to the City
and subject to the written approval of City as to
location, method and type of installation prior to
installation.
(L) The right, except as herein otherwise specifically
provided, to purchase or otherwise obtain personal
property of any nature (including, but not limited to,
gasoline, fuel, propellants, lubricating oil, grease,
food, beverages and other materials, equipment and
supplies) deemed by Lessee necessary or incidental to
its operations, its exercise of the rights herein
granted and its discharge of the obligations herein
imposed. Said purchases may be made through any
person, partnership, firm, association or corporation
Lessee may choose.
(M) The rights and privileges granted the Lessee under
Subparagraphs (E), (G), (H), and (K), of this Section
1.03 may be exercised by Lessee for and on behalf of
any other Certificated Passenger Air Transportation
Company of, by or through a nominee of Lessee. Said
nominee shall be subject to the prior written approval
of City. It is specifically provided, however, that
any such nominee shall have no greater rights than
Lessee hereunder.
Section 1.04 - Rights and Privileges Specifically Excluded.
Except as specifically provided for in Section 1.03, nothing
herein shall be deemed to give Lessee any right or permission to
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sell at the Airport any goods or services to the public, other
than related Air Transportation services. This prohibition
includes, without limiting the generality of the foregoing,
insurance sales except when not otherwise available at the
Airport.
Section 1.05 - Right of Ingress and Egress. City hereby
grants the right of ingress to and egress from but not the use
of, except as provided in this Lease, the Leased Premises and
facilities referred to in Sections 1.01 and 1.02 for Lessee, its
employees, agents, passengers, guests, patrons, its suppliers of
materials or furnishers of service, its aircraft, equipment,
vehicles, machinery and other property. Said rights shall be
subject to such ordinances, rules and regulations not modifying
or in conflict with this Lease as may now or hereafter have
application at the Airport and shall be without charge, except as
herein otherwise provided.
ARTICLE II
TITLE TO LESSEE
Section 2.01 - Installed Improvements and Property. All
improvements, equipment and other property bought, installed,
erected or placed by Lessee in, on or about the Airport and the
Leased Premises shall be deemed to be personalty and remain the
property of Lessee, except as may constitute fixtures attached to
the building or premises, which if removed would damage or impair
the use of such building or premises.
ARTICLE III
OBLIGATIONS OF CITY
Section 3.01 - Right to Lease Property. City represents
that it has the full right to lease that portion of the Airport
referred to herein, together with all the premises, facilities,
right, licenses, services and privileges herein granted, and has
full power and authority to enter into this Lease in respect
thereof.
City further represents that all things have happened and
been done to make its granting of this Lease effective and City
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warrants to Lessee peaceful possession and quiet enjoyment of the
Leased Premises, appurtenances, facilities, rights, license and
privileges during the term hereof, upon performance of Lessee's
covenants herein.
Section 3.02 - Maintenance and Operation of Airport. Except
as otherwise specifically provided herein, City shall, during the
term of this Lease, operate maintain and keep in good repair the
terminal building, terminal apron and all public airport facili-
ties and services now or hereafter connected with the Airport,
which City has agreed to furnish and supply hereunder. City shall
not, however, be required to perform maintenance and make repairs
occasioned by the negligence of or by the misuse or abuse of any
equipment or Leased Premises by Lessee or its employees, agents,
servants, patrons and invitees, in which case City may perform
such maintenance.or make such repairs as necessary and charge the
cost of same to Lessee, provided Lessee has failed to perform
such maintenance or make such repairs within a reasonable time
after a request in writing from City so to do.
City shall keep the Airport free from obstructions, includ-
ing the clearing and removal of grass, stones, snow and ice, or
other foreign matter as reasonably necessary and with reasonable
promptness from the runways, taxiways and loading areas in order
to insure the safe, convenient and proper use of the Airport by
Lessee. City shall maintain and operate the Airport in all
respects in a manner at least equal to the standards or rating
issued by the Federal Aviation Administration for airports
substantially similar in size and character and in accordance
with all rules and regulations of the federal Aviation Adminis-
tration and any other governmental agency having jurisdiction
thereof.
Nothing herein contained shall be deemed to require City to
enlarge the Airport or to make extensions or additions to the
landing areas, runways, taxiways or other appurtenances of the
Airport. It is further understood and agreed that City may
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abandon certain facilities which are no longer reasonably
justified for proper and adequate operation of the Airport.
The obligations assumed by City under this Article III shall
not obligate City, except as provided in Article X hereof, to
repair or rebuild any of said facilities at said Airport in the
event of damage by the elements, fire, explosion, or other causes
beyond the control of City. City shall keep the public and
passenger space in the terminal building adequately supplied,
equipped, furnished and decorated and shall operate or cause to
be operated adequate directional signs in said spaces and in all
other public spaces on the Airport. Said signs shall include,
but not limited to, signs indicating the location of all public
restaurants, rest rooms, newsstands, telegraph offices, baggage
counters and all other facilities for passenger or public use in
the terminal building or elsewhere on the Airport. City shall
provide and supply adequate heat, conditioned air, light and
water for the public and passenger space in the terminal build-
ing.
City shall also provide and supply adequate lighting for
vehicular parking spaces and aircraft loading ramp and adequate
field lighting including, without limiting the generality hereof,
landing lights and beacons.
City shall also provide janitors and other cleaners neces-
sary to keep the public and passenger space, including that
exclusive leased area in front of the ticket counters, and the
landing area of the Airport clean, neat, orderly, sanitary and
presentable at all times.
Section 3.03 - Maintenance and Services in Lessee's Exclu-
sive Space. City shall be responsible for and shall perform
exterior building maintenance and structural maintenance through-
out the terminal building and, at no additional charge, provide
the following services to Lessee in the Leased Premises:
(A) Building heat and air conditioning (during the period
of the year when such service is provided in the public
areas of the terminal building).
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(B) Exterior window washing at periodic intervals, as
required to provide a clean attractive appearance.
(C) Maintenance of mechanical and electrical systems
installed by City, excluding relamping behind and above
ticket counter and office areas.
Section 3.04 - Governmental Facilities. It is expressly
agreed that if funds for the provision, maintenance and operation
of the Control Tower, Instrument Landing System, and/or other air
navigational aids of other facilities required or permitted by
the United States Government and needed by Lessee or Lessee's
operation at the Airport and which are now or may hereafter be
furnished by the United States Government are discontinued by the
United States Government, City shall not be required to furnish
said facilities.
Section 3.05 - Restaurants. City agrees to provide space in
the terminal building for a restaurant or coffee shop for the
purpose of selling food and beverages to the general public.
City agrees to require the operator of said restaurant of coffee
shop to furnish employees of Lessee and air passengers food and
beverages of good quality and reasonable rates.
Section 3.06 - Ticket Counter. The ticket counter shell
located on the exclusive Leased Premises is and shall remain the
property of the City. The Lessee may submit to the City plans
and specifications for improvements or alterations to the ticket
counter shell and upon receiving prior written approval of such
plans and specifications from the Director of Aviation of the
City, Lessee may at its sole cost and expense make such improve-
ments or alterations to the ticket counter shell. All such
construction, improvement, installation or alteration shall be
considered as a fixture attached to the premises and will be and
remain the property of the City free and clear of any encum-
brance.
Section 3.07 - Outbound Baggage System. The Lessee is
hereby granted the right to use the outbound baggage conveyor
system located on the exclusive Leased Premises, and the Lessee
,
3
shall maintain said system in good condition and shall pay all
costs of repair or maintenance for said system; provided however
that said outbound conveyor system is and shall remain the
property of the City.
OBLIGATIONS OF LESSEE
Section 4.01 - Maintenance of Leased Premises. Except for
exterior building and structural maintenance by City, as provided
in section 3.03, Lessee shall be obligated, without cost to City,
to maintain its exclusive Leased Premises and every part thereof
including, but not limited to, the counter shell and the outbound
baggage system in good order, repair and safe condition.
Lessee shall, at its own expense, provide janitorial
services in the leased premises. Said services may be provided
by Lessee alone, by Lessee in conjunction with other Certificated
Passenger Air Transportation Companies who may hereafter be
lessees at the Airport.
Lessee shall relamp light fixtures as necessary, and shall
repaint the interior of the Leased Premises as necessary but not
less than once every three years. All such maintenance, repairs,
and replacements shall be of quality equal to the original
condition in materials and workmanship. All paint color or
schemes shall harmonize with the decor of the passenger terminal
area subject to the prior approval of Director of Aviation.
Section 4.02 - Porter Service. Lessee may, at its option,
provide porter service for the convenience of its passengers in
and adjacent to the baggage claim area of the terminal building.
Said service may be provided by Lessee alone, by Lessee in
conjunction with other Certificated passenger Air Transportation
Companies who may hereafter be Lessees at the Airport, or a
nominee of Lessee who shall be approved by the Director of
Aviation.
Section 4.03 - Alterations, Additions or Replacements.
During the term of this Lease, Lessee shall make no alterations,
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additions, or replacements in the Leased Premises without the
prior written approval of City.
Lessee shall likewise obtain prior approval from City before
installing, at its own expense, any additional equipment which
requires new electrical or plumbing connections or changes in
those already installed on the Leased Premises. Any equipment
installed by Lessee that is directly connected to the plumbing or
electrical systems of the terminal building shall be deemed
fixtures and shall become the property of the City upon instal-
lation.
Section 4.04 - Removal and Demolition. Lessee shall not
remove or demolish, in whole or in part, any improvements that
already exist on the Leased Premises without the prior written
consent of City which may, at its discretion, condition such
consent upon the obligation of Lessee to replace the same
improvements specified in such consent upon termination of this
Lease. City shall not withhold consent unreasonably and shall
not impose condition in its consent.
Section 4.05 - Trash and Garbage. Lessee shall provide at
its expense a complete and proper arrangement for the adequate
sanitary handling and disposal, away from the Airport, of all
trash, garbage and other refuse caused as a a result of its
operations on the Airport. Lessee shall provide and use suitable
covered metal receptacles for all garbage, trash and other refuse
on or in connection with Lessee's areas. Piling of boxes,
cartons, barrels or other similar items in an unsafe manner in or
about Lessee's premises shall not be permitted.
Section 4.06 - Taxes and Licenses. Lessee shall pay all
taxes of whatever character that may be lawfully levied or
charged upon Lessee's leasehold improvements or operations
hereunder and upon Lessee's rights to use the Leased Premises;
provided, however, that Lessee reserves the right to contest any
such taxes. lessee shall obtain and pay for all licenses or
permits necessary or required by law for the construction of any
additional improvements, the installation of equipment and
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its Air Transportation services. City shall assist Lessee where
necessary in obtaining said permits.
Section 4.07 - Rules and Regulations. In conducting its
operations hereunder, Lessee shall comply with all applicable
laws of the United States of America and the State of Texas; the
rules and regulations promulgated by their authority with
reference to aviation and air navigation; and all reasonable and
applicable rules, regulations and ordinances of City now in force
or hereafter prescribed or promulgated by authority or by law.
Provided that such rules and regulations of the City shall not be
inconsistent with the terms of this Agreement.
ARTICLE V
TERM
Section 5.01 - Term. The term of this Lease shall be for a
period of one (1) year commencing on the 1st day of July, 1986,
subject, however, to earlier termination as hereinafter provided
under Article XI prior to April 1, 1988.
ARTICLE VI
RENTALS AND FEES
Section 6.01 - Rental for Exclusive Terminal Building Space.
Rental for the Leased premises in the terminal building as
described in Section 1.01, shall be as follows:
Exclusive Area:
2904 Sq. Ft. of exclusive leased space at the rate of $8.25
per sq. ft. per year or $23,958.00 per year.
The aforesaid rental rate of $8.25 is broken down as follows:
$5.63 fixed fee to cover debt service and $2.62 for Maintenance
and Operation.
Section 6.02 - Landing Fee. The fee for the use of the
landing area and facilities necessary therefor as granted
hereunder, except those for which rentals are specifically
provided elsewhere herein, shall be as follows:
32.50 effective October 1, 1981
350 effective October 1, 1983
400 effective October 1, 1986
450 effective October 1, 1989
500 effective October 1, 1992
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per 1,000 pounds of the approved maximum gross landing weight of
each actual flight operated.
Lessee shall file with the City, acting by and through its
Director of Aviation, not later than the fifth day of each month.
Lessee's actual landings at the Airport for the preceding month,
which shall include the number and type of aircraft making such
landings.
The "term" approved maximum gross landing weight" for any
aircraft, as used herein, shall be the maximum landing weight
approved by the Federal Aviation Administration for landing such
aircraft at the Airport. Lessee shall provide the City such
"approved maximum gross landing weights" for each type of
aircraft it operates at the Airport.
Five hundred (500) pounds or any larger part of one thousand
(1,000) pounds shall be counted as if a whole one thousand
(1,000) pounds and any smaller part shall be disregarded.
Soot i nn F. ni - Ront.i fnr f nm Ilea Aroma
A. Common Bag Claim Area
The bag claim area comprises a total of approximately
8,316 sq. ft., as shown on Exhibit B attached hereto and by the
reference made a part hereof, and the air carriers have jointly
agreed to accept responsibility for payment of rent on the bag
claim area; therefore, such rental shall be charged jointly to
all Certificated Passenger Air Transportation Companies which now
or may hereafter have valid leases at the Airport at the rate of
$8.25 sq. ft. per year of $68,607.00 per year.
The Lessee shall file with the City, acting by and through
its Director of Aviation, not later than the fifth day of each
month, the actual number of passenger enplanements on Lessee's
aircraft and the actual number of departures of Lessee's aircraft
from the Airport for the preceding month.
Furthermore, the Lessee, in conjunction with other Certi-
ficated Passenger Air Transportation Companies which now or may
hereafter have valid leases at the Airport, shall provide City in
writing a schedule of the pro rata rental due by each Lessee
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hereunder and Lessee agrees to pay its stated pro rata amount
monthly. The pro rata schedule so furnished to City shall remain
in effect until such time as City is provided a revised schedule
of the pro rata rental amounts executed by all said Lessees which
revised schedule shall remain in effect until similarly modified.
The schedule attached hereto as Exhibit "C" and incorporated
herein by this reference shall be used by City to compute the
monthly pro rata amount to be paid by Lessee on the Common Bag
Claim Area until such time as Lessee in conjunction with other
Certificated Passenger Air Transportation Companies that now or
may hereafter have leases at the Airport provide to City such
written pro rata schedule or such revised pro rata schedule, as
the case may be.
The aforesaid rental rate of $8.25 is broken down as
follows: $5.63 fixed fee to cover debt service and $2.62 for
Maintenance and Operation.
B. Common Boarding Lounge Area
The common boarding Lounge area comprises a total of
approximately 2-5-,-48-9 sq. ft. as shown on Exhibit B attached
hereto and by this reference made a part hereof shall be charged
jointly to all Certificated Passenger Air Transportation Com-
panies which now or may hereafter have valid leases at the
Airport at the rate of $2.62 per sq. ft. per year or $70,187.18
per year.
Lessee, in conjunction with other Certificated Passenger Air
Transportation Companies which now or may hereafter have valid
leases at the Airport, shall provide City in writing a schedule
of the pro rata rental due by each Lessee hereunder, and Lessee
agrees to pay its stated pro rata amount monthly. The pro rata
schedule so furnished to City shall remain in effect until such
time as City is provided a revised schedule of the pro rata
rental amounts executed by all said Lessees, which revised
schedule shall remain in effect until similarly modified. The
schedule attached hereto as Exhibit "C" shall be used by City to
compute the monthly pro rata amount to be paid by Lessee on the
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Common boarding lounge area until such time as Lessee in con-
junction with other Certificated Passenger Air Transportation
Companies that now or may hereafter have leases at the Airport
provide to City such written pro rata schedule or such revised
pro rata schedule, as the case may be.
Section 6.04 - Rental for Public Address System. Lessee
shall pay a rental rate of $5.00 per month per microphone
connection located in the exclusive leased area or common lease
area. The rental rate per month will be adjusted when required
to reflect the charges imposed on the City to provide this
service.
The microphones located in the common leased area will be
provided for use in conjunction with other Certificated Passenger
Air Transportation Companies which now or may hereafter have
valid Leases at the Airport. These companies shall provide City
in writing a schedule of the pro rata rental due by each Lessee
hereunder and Lessee agrees to pay its stated pro rata amount
monthly. The pro rata schedule so furnished to City shall remain
in effect until such time as City is provided a revised schedule
of the pro rata rental amounts executed by all said Lessees which
revised schedule shall remain in effect until similarly modified.
Section 6.05 - Aircraft Storage. City shall have the right
to designate apron parking areas for the storage of Lessee's
aircraft.
Section 6.06 - Time of Payment. Lessee agrees to pay City
the rentals and fees due hereunder at such place as City may from
time to time designate. The rental for the exclusive Leased
Premises shall be payable in advance. All other rentals and fees
shall be payable in monthly installments covering the preceding
calendar month of operation.
In the event that the commencement or termination of this
Lease falls on any date other than the first or last day of a
calendar month, the applicable rentals, fees and charges (except
landing fees and rentals fees or charges that are pro rated on
the basis of passenger enplanements, aircraft departures and/or
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other such use measurements) for that month shall be paid on a
pro rata basis according to the number of days during which said
particular premises, facilities, rights, licenses, services and
privileges were enjoyed.
City shall, after the end of each calendar month, transmit
to Lessee a statement of the rentals, fees and charges incurred
by Lessee during said month as hereinabove provided. Payment
shall be made by Lessee within thirty (30) days after receipt of
such statement.
Section 6.07 - Default for Failure to Pay Rentals, Fees and
Charges. It is expressly agreed that time of payment of the
rentals and fees hereinabove provided is of the essence in this
entire Lease. Therefore, if Lessee fails to pay any rentals,
charges and fees due hereunder within thirty (30) days after City
transmits a statement therefor to Lessee, City may, at its
option, upon fifteen (15) days written notice to Lessee (unless
in such fifteen day period Lessee shall have corrected such
failure to pay) immediately or at any time thereafter enter into
and upon the Leased Premises, or any part thereof in the name of
the whole, and repossess said premises. In said event, City may
expel Lessee and those claiming by, through or under it and
remove its effects forcibly, if necessary, without being deemed
guilty of trespass and without prejudice to any remedy which
otherwise might be used for arrears of rent or preceding breach
of covenant. Upon such re-entry this Lease shall terminate.
READJUSTMENT OF RENTALS, FEES, AND OTHER CHARGES
Section 7.01. The fees herein stated are subject to
renegotiation and if new rental rates are agreed upon by the City
and all Certificated Passenger Air Transportation Companies such
agreed upon rates shall replace the rental rates contained in
this Lease.
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ARTICLE VIII
RIGHTS AND PRIVILEGES RESERVED BY CITY
Section 8.01 - Right to Charge use Fees to Others. Nothing
in this lease shall be deemed to restrict in any manner City's
right to charge any person, partnership, firm, association or
corporation fees and rentals for the use of City's property or
any improvements thereon where such use of said property or
improvements is of a regular or permanent nature, as distin-
guished from a temporary or transitory nature, or where such use
is of such a nature as to constitute the performance of a
commercial business at the Airport. In addition, City shall have
the right to charge persons, partnerships, firms, associations or
corporations a fee no less than that set forth in mutual assis-
tance ground services agreement approved by CAB, but not limited
to, fees for ramp use, jetway use, gate use, training flights and
aircraft storage, and landing fees which shall never be less than
125% of the landing fee charged Lessee as set out in Section 6.2
hereof.
Section 8.02 - Right_to Improve and Protect the Airport. In
addition to any other rights herein retained by it, City specifi-
cally reserves the following privileges:
(A) The right to further develop or improve the landing
area and other portions of the Airport as it deems
necessary, regardless of the desires or views of Lessee
and without interference or hindrance therefrom. If
feasible, such improvements shall be made in a manner
which will cause Lessee as little inconvenience as
possible.
(B) The right to take any action it considers necessary to
protect the aerial approaches of the Airport against
obstruction, together with the right to prevent Lessee
from erecting or permitting to be erected any building
or other structure on the Airport which, in the opinion
of City, would limit the usefulness of the Airport or
constitute a hazard to aircraft.
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(C) The right during the time of war or national emergency
to lease the Airport or any part thereof to the United
States Government for military use. In the event any
such lease is executed, the privileges of this instru-
ment insofar as they are inconsistent with the privi-
leges of the Lease to the government shall be suspended.
ARTICLE IX
INDEMNIFICATION, INSURANCE AND BONDS
Section 9.01 - Indemnification, Etc.. The parties agree
that Lessee is and shall always be deemed to be an independent
contractor and operator and not an agent or employee of City with
respect to its acts or omissions hereunder.
The Lessee agrees that it will indemnify and save the City
harmless from all claims growing out of any demands of contrac-
tors, subcontractors, laborers, workers, mechanics, materialmen
and furnishers of equipment or parts thereof, and all suppliers,
which claims may be incurred by the activities of Lessee at the
Airport or by reason of any improvements, alterations, construc-
tion or installation on the exclusive Leased Premises.
Lessee shall indemnify fully and save harmless City, its
officers, agents and employees from any and all claims and
actions and any and all expenses incidental to the investigation
and defense thereof, based upon or arising out of damages or
injuries to third persons or their property, caused by the fault
or negligence of Lessee, its agents or employees in the use or
occupancy of the premises and privileges hereunder. Provided,
however, that the City shall indemnify fully and save harmless
Lessee, its officers, agents, and employees from any and all
claims and actions and any and all expenses incidental to the
investigation in defense thereof based upon or rising out of
damages or injuries to third persons or their property caused by
the fault or negligence of the City, its agents and employees, or
rising out of or as a result of the condition of any of the
publicly used premises in or about said Airport. City shall give
to Lessee prompt and reasonable notice of any claims or actions
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against it and failure to so notify Lessee shall relieve Lessee
of its obligations to indemnify the City therefor. Lessee shall
have the rights to investigate, compromise and defend any such
claims or actions to the extent of its own interest.
Section 9.02 - Insurance. Lessee shall procure and keep in
effect at all times during the term of the Lease, the forms of
insurance set forth in this Section 9.02. All policies or
certificates shall contain a provision that written notice of
cancellation or of any material change in said policy by the
Insurer shall be delivered to City thirty (30) days in advance of
the effective date thereof. All policies shall contain an
agreement on the part of the respective insurers, waiving the
right of such insurers to subrogation.
Lessee shall maintain all insurance hereunder with insurance
underwriters authorized to do business in the State of Texas
satisfactory to City. All policies shall name City, its offi-
cers, servants, agents, and employees as additional insureds.
Annually, during the entire term of this Lease, Lessee shall
furnish City with certificates from the insurance carrier showing
all insurance required hereunder to be in full force and effect
or shall deposit with City certified copies of said policies.
(A) Fire Insurance - Lessee shall insure for fire and
extended coverage risks all Lessee's improvements on
the Leased Premises. Such insurance shall be in an
amount equal to the full insurable replacement value of
such improvements, subject to Lessee's right to
maintain reasonable deductibles; provided that Lessee
shall assume all losses within the deductible amount
and shall pay to City any loss incurred by City that
would have been payable had no such deductibles been
maintained by Lessee. All fire insurance policies
shall contain loss payable endorsements in favor of the
parties as their respective interests may appear
hereunder. City agrees that any payments received from
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such insuring companies by reason of loss under such
policy or policies shall be applied toward repair and
reconstruction of said Leasehold improvements.
(B) Public Liability and Property Damage Insurance -
Promptly after the execution of this Lease, Lessee
shall provide comprehensive general liability insurance
in protection of City, its officers, agents, and
employees. Lessee shall provide public liability
insurance for personal injuries or death growing out of
any one accident or event in a minimum sum of THREE
HUNDRED THOUSAND AND NO/100 DOLLARS ($300,000.00) for
one person and TWO MILLION AND NO/100 DOLLARS
($2,000,000.00) for any one accident, and in addition,
shall provide property damage liability insurance in a
minimum sum of TWO HUNDRED FIFTY THOUSAND AND NO/100
DOLLARS ($250,000.00) for property damage growing out
of any one accident or event. Insurance coverage
required of Lessee shall be subject to adjustment from
time to time to comply with any changes in minimum
requirements determined necessary by City.
ARTICLE X
DAMAGES OR DESTRUCTION OF LEASED PREMISES
Section 10.01 - Partial Damage. If the Leased Premises are
partially damaged by fire, explosion, the elements, the public
enemy, or other casualty, but not rendered untenantable, the same
will be repaired with due diligence by City at its own cost and
expense; provided, however, that if the damage is caused by an
act or omission of Lessee, its sublessees, agents, or employees,
Lessee shall be responsible for repairing said premises and shall
pay the cost therefor.
Section 10.02 - Extensive Damage. If the damage shall be so
extensive as to render the Leased Premises untenantable, but
capable of being repaired in thirty (30) days, the same shall be
repaired with due diligence by City at its own cost and expense,
and the rent payable herein with respect to Lessee's exclusive
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space shall be paid proportionately to the time of such damage
and thereafter cease until such time as the premises are fully
restored, provided, however, that if the damage is caused by an
act or omission of Lessee, its sublessees, agents or employees,
Lessee shall be responsible for repairing said premises and shall
pay the costs therefor. During any such period where Lessee
repairs said premises under the terms of this paragraph, the
usual rental shall be payable.
The abatement of rental for the Leased Premises, as afore-
said, shall not be construed as a waiver of other fees due and
payable under the terms of Article VI.
Section 10.03 - Complete Destruction. In the event the
Leased Premises are completely destroyed by fire, explosion, the
elements, the public enemy or other casualty, or so damaged that
they will remain untenantable for more than thirty (30) days,
City shall be under no obligation to repair and reconstruct said
premises, and rent payable hereunder shall be paid proportion-
ately to the time of such damage or destruction and shall
thenceforth cease until such time as the premises are fully
restored. If within one hundred fifty (150) days after the time
of such damage or destruction said premises shall not have been
repaired or reconstructed, or other reasonable facilities
provided in lieu thereof, Lessee may cancel this Lease in its
entirety or such part of this Lease as relates to the exclusive
Leased Premises by giving City written notice of such cancella-
tion.
Notwithstanding the foregoing, if the Leased Premises and
adjoining premises are completely destroyed as a result of an act
or omission by Lessee, City may, in its discretion, require
Lessee to repair and reconstruct the Leased Premises and adjoin-
ing premises and pay the costs therefor. During any such period
where Lessee repairs said premises under the terms of this
Paragraph, the usual rental shall be payable.
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Section 10.04 - Right to Recover Damages. Nothing in this
Lease shall be construed as_a waiver of the right of either City
or Lessee to recover damages from the other arising out of the
fault or negligence of the other.
Section 10.05 - Limit of City's Obligations Defined. It is
understood that, in the application of the foregoing Sections
10.01, 10.02 and 10.03, City's obligations shall be limited to
repair or reconstruction of the terminal building to the same
extent and of equal quality as obtained at the commencement of
the operations hereunder. Redecoration and replacement of
furniture, equipment and supplies shall be the responsibility of
Lessee be of equivalent quality to that originally installed
hereunder within Lessee's exclusive area.
ARTICLE XI
TERMINATION OF LEASE
CANCELLATION, ASSIGNMENT AND TRANSFER
Section 11.01 - Termination. This Lease shall terminate at
the end of the full term hereof, and Lessee shall have no further
right or interest in the Leased Premises, except as provided in
Article XII.
Section 11.02 - Cancellation by Lessee. This Lease shall be
subject to cancellation by Lessee after the happening of one or
more of the following events:
(A) The permanent abandonment of the Airport as an airline
terminal or the permanent removal of scheduled airline
service from the Airport.
(B) The lawful assumption by the United States Government,
or any authorized agency thereof, of the operation,
control or use of the Airport, or any substantial part
or parts thereof, in such a manner as substantially to
restrict Lessee for a period of at least ninety (90)
days from operating thereon for the carrying of
passengers, cargo, express, property, and United States
mail.
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(C) Issuance by any court of competent jurisdiction of an
injunction in any way preventing or restraining the use
of the Airport or any part thereof for Airport purposes,
and the remaining in force of such injunction for a
period of at least ninety (90) days.
(D) The inability of Lessee to use for a period in excess
of ninety (90) days the Airport, other than the Leased
Premises, or any of the licenses, services or privi-
leges granted to Lessee hereunder, because of fire,
explosion, earthquake, or other casualty or acts of God
or the public enemy, provided that same is not caused
by negligence or willful acts or failure to act on part
of Lessee.
(E) The suspension, or substantial modification, for a
period of ninety (90) days or the renovation of the
operating authority of the Lessee to serve the Lubbock
area through the Airport by final order of the Civil
Aeronautics Board or other governmental agency, Federal
or State, having jurisdiction over Lessee.
(F) Any failure or refusal by the Federal Aviation Adminis-
tration preventing Lessee from operating into, from or
through said Airport such aircraft as Lessee may
reasonably desire to operate.
(G) The default by City in the performance of any covenant
or agreement herein required to be performed by City
and the failure of City to remedy such default for a
period of ninety (90) days after receipt from Lessee of
written notice to remedy the same; provided, however,
that no notice of cancellation, as above provided,
shall be of any force or effect if City shall have
remedied the default prior to the receipt of the
Lessee's notice of cancellation.
Lessee may exercise such right of termination by giving City
sixty (60) days advance written notice at any time after the
lapse of the applicable periods of time and this Lease shall
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terminate at the end of such sixty day period. Rental due
hereunder shall be payable only to the date of said termination
except such portion of the rental attributable to the exclusive
Leased Premises when such premises shall have been completely
destroyed by fire, explosion, the elements, the public enemy or
other casualty so that such Leased Premises remain untenentable
for more than thirty (30) days in which event the rental shall be
payable as provided in Article X, Section 10.03 hereof.
Lessee's performance of all or any part of this Lease for or
during any period(s) after a default by City of any of the terms,
covenants, and conditions herein contained to be kept by City
shall not be deemed a waiver of any right on the part of Lessee
to cancel this Lease for any subsequent failure by City so to
perform, keep or observe any of the terms, covenants, or condi-
tions hereof.
Section 11.03 - Cancellation by City. This Lease shall be
subject to cancellation by City upon the happening of any one of
the following events:
(A) The taking by a court of competent jurisdiction of
Lessee and its assets pursuant to proceedings brought
under the provisions of any federal reorganization
act.
(S) The appointment of a receiver of Lessee's assets.
(C) The divestiture of Lessee's estate herein by other
operation of law.
(D) The abandonment by Lessee of its conduct of air
transportation at the Airport for a period of ninety
(90) days.
(E) The default by Lessee in the performance of any
covenant or agreement herein required to be performed
by Lessee (except rental payments for which provision
is made in Section 6.07) and the failure of Lessee to
remedy such default for a period of sixty (60) days
after receipt of written notice by City to remedy
same.
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(F) The lawful assumption by the United States Government
or any authorized agency thereof of the operation
control or use of the Airport and facilities, or any
substantial part or parts thereof, in such manner as
substantially to restrict Lessee, for a period of at
least ninety (90) days, from operating thereon for the
carrying of passengers, cargo, property and the United
States airmail.
(G) In addition to the foregoing, all rights, privileges or
interests acquired hereunder by Lessee may, at the
option of City and following written notice of thirty
(30) days, be suspended or finally terminated if such
suspension or termination is found by City, acting in
good faith, to be necessary to secure federal financial
aid for the development of the Airport or to secure
federal financial aid for the development or promotion
of aeronautical operation thereon.
Upon termination of this Lease upon the occurrence of the
aforesaid events, City may take immediate possession of the
Leased Premises and remove Lessee's effects, forcibly, if
necessary, without being deemed guilty of trespass and without
prejudice to any remedy which might otherwise be used for arrears
of rent or for breach of covenant.
It is agreed that failure to declare this Lease terminated
upon the default of Lessee for any of the reasons set forth above
or in Section 6.07 hereof shall not operate to bar or destroy the
right of City to declare this Lease null and void by reason of
any subsequent violation of the terms of this Lease.
Section 11.04 - Notice of Termination. City may exercise
its right of termination under Section 11.03 hereof by giving
Lessee sixty (60) days advance written notice at any time after
the lapse of any applicable periods of time and this Lease shall
terminate at the end of such sixty (60) day period. Rental due
shall be payable only to the date of such termination.
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Section 11.05 - Assignment and Subletting. Lessee shall not
sell, assign, or transfer this Lease or any part thereof and
shall not sublease all or any portion of the Leased Premises
without the prior written consent of City; provided, however,
that Lessee may"assign this Lease to any corporation with which
Lessee may merge or consolidate or which may succeed to the Air
Transportation business of Lessee.
ARTICLE XII
PROPERTY RIGHTS UPON TERMINATION
Section 12.01 - Lessee's Right of Removal. Upon expiration
of this Lease shall have the right for a period of sixty (60)
days after the date of expiration, to remove any or all of its
property from the Airport; provided, however, that Lessee shall
not be in default in its payments to City hereunder and provided
that Lessee shall restore said premises to their original
condition as of the beginning of occupancy, ordinary wear and
tear, damage by the elements, fire, explosion or other causes
beyond control of Lessee excepted.
Section 12.02 - City's Rights at Termination. Title to any
and all property not removed by Lessee prior to the expiration of
the aforesaid sixty (60) day period shall vest in City; provided,
however, that City reserves the right to require Lessee to remove
such improvements and property, the cost of which shall be borne
by Lessee in the event City removes same on failure of Lessee to
perform its obligation hereunder.
City also reserves the right to charge reasonable rental for
the sixty (60) day period of continued occupancy by Lessee;
provided, however, that no charge shall be made to Lessee if
Lessee shall remove its property from the Leased Premises within
the first thirty (30) days of said sixty (60) day period.
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ARTICLE XIII
GENERAL PROVISIONS
Section 13.01 - Other Ordinances. This Lease supersedes
City Ordinance Number 2375 of the 6th day of December, 1957, and
amendments thereto, pertaining to the rental rates and landing
fees at the Airport.
Section 13.02 - Arbitration. In any event and notwith-
standing any provisions made in this Lease, the parties agree to
submit to arbitration any question or dispute, except nonpayment
of rentals, arising between said parties with respect to the
interpretation of any term, condition or covenant herein con-
tained or with respect to any matter of compliance or noncom-
pliance with the terms hereof. City and Lessee shall each select
one arbitrator and the two so chosen shall then select a compe-
tent and disinterested third arbitrator; and the arbitrators
together shall then consider the question(s) or the dispute(s)
submitted to them in writing by the parties hereto. The decision
in writing of any two shall determine the particular question or
dispute under the consideration. The parties hereto shall bear
equally the expense of said arbitration.
Section 13.03 - Nondiscrimination. The Lessee, its agents
and employees will not discriminate against any person or class
of persons by reason of age, sex, race, color, creed or national
origin in providing any services or in the use of any of its
facilities provided for the public, in any manner prohibited by
Part 15 of the Federal Aviation Regulations. The Lessee will
conduct its activities in accordance with 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 participation in, be denied the
benefits of, or otherwise be subject to discrimination under
activity of the Lessee. The Lessee further agrees to comply with
such enforcement procedures as the United States might demand
that the City take in order to comply with the Sponsor's Assur-
ances.
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Lessee agrees to not discriminate against any employee or
applicant for employment because of race, creed, color, age, sex
or national origin. The Lessee shall not discriminate, solely on
the basis of such persons' handicap, against any qualified
handicapped person who is either an employee or an applicant for
employment with the Lessee. The Lessee agrees to take affirma-
tive action to insure that applicants are employed and that
employees are tested during employment without regard to their
race, creed, color, age, sex or national origin. Such action
shall include, but not be limited to, employment, upgrading,
demotion, or transfer, recruitment, layoff, rates of pay or other
forms of compensation, and selection for training, including
apprenticeship.
Section 13.04 - Rules and Regulations. City shall have the
right to and shall adopt from time to time and enforce reasonable
rules and regulations, which Lessee agrees to observe and obey,
with respect to the use of the Airport, public terminal building
and appurtenances; provided that such rules and regulations shall
not be inconsistent with safety and with rules, regulations, and
orders of the Federal Aviation Administration with respect to
aircraft operations at the Airport, and with the procedures
prescribed or approved from time to time by the Federal Aviation
Administration with respect to the operation of Lessee's aircraft
at the Airport.
Section 13.05 --Interpretation of Lease. Nothing in this
Lease shall be construed or interpreted in any manner whatsoever
as limiting, relinquishing, or waiving of any rights or ownership
enjoyed by City in the Airport property, or in any manner waiving
or limiting its control over the operation, maintenance, etc., of
Airport property or in derogation of such governmental rights as
City possesses, except as is specifically provided for herein.
Section 13.06 - Conformity of Lease. In the event that City
shall enter into a Lease, contract or agreement for use of the
Airport with any other Certificated Passenger Air Transportation
Company having aircraft or substantially similar size as that
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operated by Lessee and said Lease, contract or agreement contains
more favorable terms, rights, or privileges than this Lease, then
the same shall be concurrently and automatically made available
to Lessee, at its option.
Section 13.07 - Invalid Provisions. In the event any
covenant, condition or provision herein contained is held to be
invalid by any court of competent jurisdiction, the invalidity of
any such covenant, condition or provision shall in no way affect
any other covenant, condition or provision herein contained;
provided that the invalidity of such covenant, condition, or
provision does not materially prejudice either City or Lessee in
its respective rights and obligations contained in the valid
covenants, conditions or provisions of this Lease.
Section 13.08 - Sponsor's Assurances. This Lease shall be
subject to the terms of the City's Sponsor's Assurances Agreement
as amended. City represents that none of the provisions of this
Lease violates any of the provisions of said Sponsor's Assur-
ances, as amended.
Section 13.09 - Consent Not to be Unreasonably Withheld.
Whenever consent is required hereunder by either City of Lessee,
such consent is not to be unreasonably withheld or to be delayed
for an unreasonable period of time.
Section 13.10 - Redelivery of Premises. Lessee shall, upon
termination of this Lease, quit and deliver up the Leased
Premises to City peaceably, quietly and in as good order and
condition as the same now or may hereafter be improved by Lessee
or City, reasonable use and wear thereof excepted.
Section 13.11 - Holding Over. In the event Lessee remains
in possession of the Leased Premises after the expiration of this
Lease without any written renewal thereof, 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 termi-
nated at any time by City.
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Section 13.12 - Federal Aviation Administration. Whenever
the term "Federal Aviation Administration" is used in this Lease
it shall mean the Federal Aviation Administration created by the
Federal Government under the Federal Aviation Act of 1958, or to
such other Federal Government authority as may be the successor
thereto or be vested with the same or similar authority.
Section 13.13 - Inspection. City through its authorized
agent shall have the right at all reasonable times to enter upon
the Leased Premises to inspect said Premises, to observe the
performance by Lessee of its obligations hereunder, and to do any
act which City may be obligated or have the right to do under
this Lease.
Section 13.14 - Nonexclusive. It is hereby agreed that
nothing herein contained shall be construed to grant or autho-
rized the granting of an exclusive right prohibited by Section
308.of the Federal Aviation Act of 1958, as amended, 49 U.S.C.S.
§1349 (1981), and City reserves the right to grant to others the
privilege and right of conducting any one or all of the aeronau-
tical activities listed herein, or any other activity of an
aeronautical nature.
Section 13.15 - Lease Made in Texas. This Lease has been
made in and shall be construed in accordance with the laws of the
State of Texas.
Section 13.16 - Successors. This Lease shall bind and inure
to the benefit of any successor of City and any successor,
assignee or sublessee of Lessee.
Section.13.17 - Headings. The article and section headings
contained herein are for convenience in reference and are not
intended to define or limit the scope of any provision of this
Lease.
Section 13.18 - Time of Essence. Time is of the essence of
i
this Lease.
Section 13.19 - Notices. Notices to City provided for
herein shall be sufficient if sent by certified mail, postage
prepaid, addressed to: Lubbock International Airport, Route 3,
- 32 -
Box 389, Lubbock, Texas 79401 and notices to Lessee, if sent by
certified mail, postage prepaid, addressed to: Mr. Gerald B.
Hickman, President, Aspen Airlines, Inc.,. 3980 Quebec Street,
Suite 217, Denver, Colorado 80207, or to such other addresses as
the parties may designate to each other in writing from time to
time.
IN WITNESS WHEREOF, the Parties have hereunto set their
hands this 14)t day of , 1986.
LESSOR:
CITY OF LUBBOCK
B Y :
B C. McMINN
MAYOR
DATE . 0'
ATTEST:
„ d .t Boyd, City �ec etary
DATE
APPROVED AS TO CONTENT:
MaiNin Coffee, Yj/eector of
Aviation
APPROVED AS TO FORM:
Michwle Hart, Assis a t City
Attorney
LESSEE:
ASPEN AIRLINES, INC.
rk
BY:
GERALD B. HIC`KMAN
PRESIDENT
DATE
ATTEST:
DATE �--)q—XKa
- 33 -
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FANA
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EXH IT A
ICI I r, P�RgNATIT IRPO(TS AREA
(PACE 2 of 2)
LUBBOCK IRITERMATIOMAL AIRPORT
/' OAGGAECWM
EXHIBIT B
LUBBOCK INTERNATIONAL AIRPORT
ASPEN AIRLINES COMMON USE AREA
( ) USE AREA COVERED UNDER THIS LEASE
EXHIBIT C
COMMON USE AREA PRO RATA RENTAL SCHEDULE
COMMON BOARDING LOUNGE AREA:
26,789 sq.ft. @ $ 2.62 per sq.ft.per yr = $ 70,187.18 yearly
_ $ 5,848.93 monthly
Apportioned to each airline: 20% on the % of departures
80% on the % of enplanements
BAGGAGE CLAIM AREA:
8,316 sq.ft. @ $ 8.25 per sq.ft. per yr = $ 68,607.00 yearly
_ $ 5,717.25 monthly
Apportioned to each airline: 20% divided equally among the airlines
80% on the % of enplanements