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HomeMy WebLinkAboutResolution - 3148 - Lease Agreement - Texas General Steel Company Inc - Building Space, LIA - 07_13_1989Resolution # 3148 July 13, 1989 Item #24 HW:dw 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 with Texas General Steel Company, Inc., 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 July , 1989. c 9. C. MIT , MAYOR ATTEST: oyd, City Secretjary `APPROVED .AS TO CONTENT: �� Marvin Coffee, D;VWctor of Aviation APPROVED AS TO FORM: !Y A�� - Harold Willard, Assistant*City Attorney HW:dw THE STATE OF TEXAS § COUNTY OF LUBBOCK § KNOW ALL MEN BY THESE PRESENTS: LEASE AGREEMENT This Lease Agreement, entered into at Lubbock, Texas, by and between the City of Lubbock, hereinafter referred to as "Lessor," and Texas General Steel Company, Inc., hereinafter referred to as "Lessee." WITNESSETH WHEREAS, Lessor owns and operates a public airport designated as Lubbock International Airport and herein called "Airport;" and WHEREAS, Lessor also owns a warehouse located on the Airport which Lessee desires to lease and utilize for storage purposes; and WHEREAS, Lessor deems it in the public interest to lease said warehouse to the Lessee for good and valuable consideration. ARTICLE I NOW THEREFORE, for and in consideration of the terms, covenants and conditions hereinafter set forth, the Lessor does hereby lease unto Lessee, for use as a storage facility, the warehouse whose general location at the Airport is depicted on Exhibit A attached hereto and by this reference made a part hereof for all purposes, together with the right of ingress and egress. The initial term of this Agreement shall be for a period of six (6) months commencing on May 15, 1989, and ending on November 14, 1989, both dates inclusive, and shall be extended upon the same terms and conditions contained herein for an additional term of six (6) months if Lessee notifies the Director of Aviation of the City of Lubbock in writing of Lessee's desire for such additional term prior to expiration of the initial term. Notwithstanding any provision in the above paragraph, this Agreement is subject to earlier termination as hereinafter provided. In consideration of the rights and privileges herein granted, Lessee shall pay to the Lessor a rental of TWENTY-FOUR HUNDRED AND NO/100 DOLLARS ($2,400.00) for the initial term of this Lease, payable in six (6) equal monthly installments of FOUR HUNDRED AND N0/100 DOLLARS ($400.00), in advance, by the fifteenth (15th) day of each month this Lease is in effect. 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 provisions and conditions: 1. Lessee shall use the warehouse solely for storage purposes. 2. Lessee agrees that it will at all times during the term of this Lease maintain the warehouse in good condition, ordinary wear and tear excepted, such maintenance to be the sole responsibility and obligation of Lessee. 3. Lessor will not be required to provide Lessee with access to the warehouse by removing snow or ice from any portion of the Airport. 4. Lessee will erect no signs and will distribute no advertising matter on Airport premises without the prior written consent of the Director of Aviation. Such prior written consent shall not be required for advertising placed by Lessee with Ackerley Airport Advertising, Inc. or any other party having the right to sell, rent or offer airport terminal advertising space. 5. Lessee shall not permit any mechanic's, materialman's or contractor's liens to arise against the warehouse, and Lessee expressly agrees that it will keep and save the warehouse 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 -2- act or thing done by Lessee, its agents, officers or employees. 6. In the event any mechanic's or other liens or orders for payment shall be filed against the warehouse while this Agreement is in effect, Lessee shall within ten (10) days cause the same to be cancelled and discharged of record, by bond or otherwise, at the election and expense of Lessee, and shall also defend on behalf of Lessor, at Lessee's sole cost and expense, any action, suit or proceeding which may be brought thereon or for the enforcement of such liens or orders. 7. Lessor shall assume no responsibility as to the condition of the warehouse and Lessee herein expressly assumes all responsibility for maintenance, upkeep and repairs necessary to keep the warehouse in a safe and serviceable condition. 8. The Lessee shall not make, permit or suffer any additions, improvements or alterations to the warehouse herein leased without prior written consent of the Director of Aviation of the City of Lubbock. Any such additions, improvements or alterations made with the consent of the Director of Aviation shall be solely at the expense of the Lessee, and unless such consent provides specifically that title to the additions, improvements or alterations so made shall vest in the Lessee, title thereto shall at all times remain in the Lessor, and such additions, improvements or alterations shall be subject to all of the terms, covenants and conditions of this Agreement. 9. The Lease herein granted is subject to any and all applicable laws, ordinances, rules and regulations pertaining to the Airport. 10. During 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 all or part of the landing area, the publicly owned -3- air navigation facilities, and other area or facilities of the Airport. If any such agreement is executed, the provisions of this instrument, insofar as they are inconsistent with the provisions of the agreement with the Government, shall be suspended, but rent hereunder shall abate accordingly. 11. This Agreement shall be subordinate to the provisions of any existing or future agreement between the Lessor and the United States pertaining to the operation or maintenance of the Airport, the execution of which has been or may be required as a condition precedent to the receipt or expenditure of federal funds for the development of the Airport. Should the effect of such agreement with the United States effectively 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. 12. All rights, privileges and interests acquired herein by Lessee, at the option of the Lessor, 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 or promotion of aeronautical operations thereon, but rent hereunder shall abate accordingly. 13. The Lessor, acting by and through the Director of Aviation or other designated representative, shall have the right to inspect the warehouse at all reasonable times that this Lease is in effect. 14. 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 omissions of the employees or agents of Lessee, shall be properly repaired or replaced by the Lessee to the satisfaction of the Lessor and its authorized representatives, or in lieu of such repair or replacement, the Lessee shall, -4- 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 which results from the loss of, damage to or destruction of such property. 15. 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, expense or loss, including attorneys' fees, resulting from claims or court action of any nature arising directly or indirectly out of any acts or omissions of the Lessee, its agents, servants, guests, employees or business visitors under this Agreement. 16. The Lessee shall maintain at all times, at its sole expense, with an insurance underwriter authorized to do business in the State of Texas and acceptable to the Lessor insurance against claims of public liability and property damage resulting from Lessee's activities at the Airport. The amount of insurance coverage shall not be less than FIFTY THOUSAND AND N0/100 DOLLARS ($50,000) for property damage arising out of any one accident or event, or less than ONE HUNDRED THOUSAND AND N0/100 DOLLARS ($100,000) for personal injury or death of any one person in any one event, or less than THREE HUNDRED THOUSAND AND N0/100 DOLLARS ($300,000) for personal injury or death of two (2) or more persons in any one event. Certificates of insurance or other satisfactory evidence of coverage shall be filed with the Director of Aviation prior to entry upon the warehouse premises by the Lessee. Each policy shall name the Lessor, City of Lubbock, as an additional insured as its interest may appear and shall contain a provision requiring the insurer to give the Lessor written notice of cancellation or of any material change in said policy or certificates at least thirty -5- (30) days in advance of the effective date of such cancellation or material change. Each policy shall also contain a provision waiving the right of such insurer to subrogation. 17. Lessee shall furnish to the Lessor satisfactory evidence that it carries Workers' Compensation Insurance in accordance with the laws of the State of Texas. 18. The Lessee herein agrees to assume responsibility for the payment of all public utility charges connected with Lessee's use of the warehouse including, but not limited to water, gas, electricity, telephone and sewer service. 19. 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. 20. Lessee shall not assign nor sublet this Lease without prior written consent of the Director of Aviation of the City of Lubbock, and no such assignment or subletting shall affect Lessee's obligations to make all required rental payments hereunder. 21. The failure of the Lessor to insist upon performance of any of the terms, covenants or conditions of this Lease shall not be construed as a waiver or relinquishment of the future performance of any such terms, covenants or conditions, and the Lessee's obligation with respect to such future performance shall continue in full force and effect. 22. Lessee shall, at its sole expense, provide a complete and property arrangement for the adequate sanitary handling and disposal away from the Airport of all trash, garbage and other refuse that results from Lessee's use of the warehouse. a 23. In the event Lessee remains in possession of the warehouse after the expiration of this Agreement, 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. 24. Lessee shall prohibit both unauthorized persons and vehicles from entering those Airport premises over which Lessee has control or usage of either exclusively or in common with other Airport tenants, and Lessee agrees that in the event that a civil penalty or fine is levied against the Airport or City as a result of Lessee's failure to comply or act in accordance with this provision or any other applicable federal, state or local statutes, ordinances, rules and regulations affecting the use, occupancy or operation of any of said premises, Lessee shall immediately reimburse the Airport or City the full amount of the penalty or fine and correct the act or omission leading to, causing or contributing to the violation. ARTICLE IV This Lease Agreement shall terminate at the end of the initial term hereof and Lessee shall have no further right or interest in the warehouse except as provided in Article I and Article III, Paragraph 23. This Agreement is subject to termination for the reasons set forth below, provided that fifteen (15) days written notice is given to the non -terminating party. Rental due hereunder shall be payable only to the effective date of said termination. The Lessee may terminate upon the happening of any of the following: 1. The permanent abandonment of the Airport as an airline terminal. -7- 2. The issuance by any court of competent jurisdiction of an injunction in any way preventing or restraining the use of the Airport, provided such injunction remains in force 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 thirty (30) 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 utilizing the warehouse under the terms of this Agreement for a period of at least thirty (30) days. The Lessor may terminate upon the happening of any of the following: 1. If the Lessee shall file a voluntary petition of bankruptcy; if Lessee is adjudicated as bankrupt; if a court shall take jurisdiction of Lessee and its assets pursuant to proceedings brought under the provisions of any federal reorganization act; if a receiver for Lessee's assets is appointed; or if Lessee is divested of its rights, powers and privileges under this Agreement by other operation 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 required under this Agreement. 4. If the Lessee shall fail to perform, keep or observe any of the terms, covenants or conditions contained in this Agreement to be performed, kept or observed by Lessee. -8- 5. If the Lessee shall fail to abide by all applicable laws, ordinances, 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 development or promotion of aeronautical operations thereon. In the event the warehouse is damaged by fire or other accidental cause during the term of this Agreement so as to become totally or partially unusable for storage purposes, Lessor shall have the option to restore the building to its former condition. If Lessor exercises its option to'restore the warehouse, Lessor shall proceed with due diligence. If the damage is so extensive as to practically amount to the total destruction of the utility of the warehouse for storage purposes, Lessee's obligation to pay rent hereunder shall abate for the time and to the extent that the warehouse has been rendered unusable. Should Lessor not exercise its option to restore the building, 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. Within ten (10) days following the date of expiration or termination of this Agreement, the Lessee shall, as required by the Lessor, vacate said warehouse, remove all property of Lessee and restore the warehouse 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 from the warehouse upon expiration or termination is subject to the condition that Lessee has paid in full all amounts due Lessor under this Agreement. If the Lessee shall fail or neglect to restore the warehouse within ten (10) days of said expiration or termination, then at the option of Lessor, said property of the Lessee shall either become the property of the -9- Lessor without compensation therefor or the Lessor may restore the warehouse at the expense of the Lessee, and no claim for damages against the Lessor or its officers, agents or employees shall be created or made as a result of either action. ARTICLE V 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. 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 Texas General Steel Company, Inc., Rt. 3, P. O. Box 24 West, Lubbock, Texas 79401. 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 attorneys' fees together with all costs of court. Both parties hereby agree that this instrument constitutes 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 day of S't//-y , 1989. LESSOR: CITY OF LUBBOCK /� C BY : ( , "®r B. C. McMIRN, MAYOR P,TT T Ranet Boyd, City Secreta y APPROVED AS TO CONTENT: Marvin Coffee, rector of Aviation APPROVED AS TO FORM: Harold Willard, Assistant City Attorney LESSEE: TEXAS GEN L STEEL ., INC. BY: ATTEST. t 7 i Secretary -10- 1 Act Ccntmuni cat ions E National Wcatilcr• fcrv./ Custons/ Cone Taylor I2 Cone Taylor Aviation Q Berry Enterprises Q r } ZONE 1 3 Horton Aero Service 10 Executive Hangars CL AR :~ 4 Texas Air Center 11 Hangars of Lubbock � I 5 WTA, Inc. 12 Burlington Northern (Vacant) ' 6 Wes -Tex Aircraft X 13 Saturday Sales J ELEVATED -- I WATER TANX' G 43 + GUAVA AVE. x •_ .. _� —.J LU 900CK N'ATER O II. TREATMENT PLANT REIL 14 Texas General Steel I !I 15 Bush Hog Cont.(Vaca 16 B 6 J Metal Works 17 Flight Service j 18 Federal Express LIDE > -� �-I•LIGHIED WIND CONE 1 � J FSCfl IANSMITTER I 20 FSI, Inc. ® I 21 Kerr Const. (Vacant fI 22 Aeroplanes, Inc. (Bldg, owned by 13 Aeroplanes -on leas- ' land ) IG FOR J :QUIPMEN m is- " W CRASH- FIRE -RESCUE _j FACILITIBld Vacant ES _ J �'�T� �• Bldgs. 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