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HomeMy WebLinkAboutResolution - 3695 - Lease Agreement - Sabre Travel Information Network - Office Space, LIA - 08_22_1991Resolution No. 3695 August 22, 1991 Item #22 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 Space Lease by and between the City of Lubbock and Sabre Travel Information Network, 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 22nd TTEST: e uoyd, ary APPROVED AS TO CONTENT: Bern E. Case, Director of Aviation APPROVED AS TO FORM: ►V . Harold Wi ar , Assistant City Attorney day of August , 1991. B./C. McMINN, MAYOR SUMMARY SABRE TRAVEL INFORMATION NETWORK -- Sabre has occupied this office space for one year and is seeking a new lease for two more years. -- Sabre Travel Information Network is a division of AMR Corp. which is the parent company of American Airlines. -- STIN markets its computer reservation system to travel agents which in turn use the system to book reservations and issue tickets on airlines, hotels, rent cars and some tour packages and cruise lines. -- Sabre's office rent adds $208.76 per month to the Airport's income. -- We recommend approval. Resolution No. 3695 August 22, 1991 Item #22 HW:dw 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, a Home Rule Municipality, hereinafter referred to as "Lessor," and Sabre Travel Information Network, A Division of Inc. hereinafter referred to as "Lessee;" American Airlines WHEREAS, Lessor owns and operates Lubbock International Airport (herein called "Airport"); and WHEREAS, Lessee desires to conduct a travel information service in the terminal building of the Airport; and WHEREAS, Lessor deems it in the best interest of the citizens of the City of Lubbock to provide Lessee space at the Airport in which to conduct its business; 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 171 square feet of space as shown on 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 August 1, 1991. This Agreement automatically renews annually unless terminated as provided in Article V below. ARTICLE II In consideration of the rights and privileges herein granted, Lessee shall pay to Lessor a rental at the rate of $14.65 per square foot per year adjusted on January 1 of every year that this Agreement remains in effect by the amount of the increase or decrease in the Consumer Price Index (CPI) published by the Bureau of Labor Statistics of the United States Department of Labor. For the purpose of computing all adjustments, the CPI as of January 1, 1991, shall be construed as the base from which increases or decreases in the rental rate are calculated. Lessee shall pay to Lessor the rent as set forth above in twelve (12) monthly installments, payable in advance, by the tenth (loth) day of each month. Upon execution of this Agreement by both parties hereto, the monthly rental then payable shall be TWO HUNDRED EIGHT AND 76/100 DOLLARS ($208.76). ARTICLE III This Lease is granted subject to the following conditions: 1. Lessee shall use the leased premises solely for the purpose of marketing a travel information service. 2. Lessee's right to market a travel information service within the terminal building at the Airport shall be nonexclusive. 3. Any property installed or added by Lessee which becomes permanently attached to the leased premises shall become the property of Lessor upon termination of this Lease. 4. Lessee will erect no signs and will distribute no advertising in the Airport without the prior written consent of the Director of Aviation of Lessor. 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. 5. All of Lessee's business operations and solicitations will be confined to the leased premises. 6. The Lessee shall not bind or attempt to bind Lessor for payment of any money in connection with installations, 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 contractor's liens to arise against the Airport premises or any improvements, equipment, machinery or fixtures thereon belonging to the Lessor, and Lessee expressly 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 Lessee. 7. Failure of the Lessee to comply with any requirement of paragraph 6 shall be cause for immediate termination of this Lease Agreement by Lessor. - 2 - 8. Lessor shall assume no responsibility as to the condition of the leased premises and shall not assume any responsibility for maintenance, upkeep or repair necessary to keep the premises in a safe and serviceable condition. 9. Lessor shall have the right to approve any construction 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 pertaining to Lubbock International Airport. 2. During time of war or national emergency, the Lessor shall have the right to enter into any agreement with the United States Government for military or naval use of all or part of the landing area, the publicly owned air navigation facilities, and any other areas and facilities at 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. 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 expenditure 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. 4. All rights, privileges and interests acquired herein by Lessee may be suspended, at the option of the Lessor, following written notice of thirty (30) days, 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 of aeronautical operations thereon, but rent hereunder shall abate accordingly. - 3 - 5. The Lessor, acting by and through the Director of Aviation or other designated representative, shall have the right to inspect the leased premises 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 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, 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 due to 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 and omissions and Lessor shall in no way be responsible therefor. 8. The Lessee agrees to indemnify, defend and forever save and keep Lessor, its authorized agents, representatives and employees, harmless from and against any and all penalties, liability, annoyances and losses resulting from claims or court actions of any nature arising directly or indirectly out of any acts or omissions of the Lessee, its agents, servants, employees or business visitors under this Agreement. 9. The Lessee shall assume responsibility for the payment of all taxes and assessments, license fees and public utility charges levied on the leased premises, the business conducted on the leased premises, or 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 Lessee, the leased premises, or any part thereof. The Lessor does not guarantee to furnish utilities or utility services in the future. In the event utility service is not furnished for reasons other than repair or installation of lines or nonpayment of charges, Lessee shall have the option to cancel this Lease upon thirty (30) days notice to the Lessor. - 4 - 10. 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 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 officers or employees have 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. 11. This Lease may not be assigned or sublet without the written consent of Lessor, but such consent shall not be unreasonably withheld. No such assignment or subletting shall affect Lessee's obligations to make all required rental payments hereunder. 12. 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 terms or conditions, but the Lessee's obligation with respect to such failure of performance shall continue in full force and effect. ARTICLE V This Agreement is subject to termination with or without cause by either party upon thirty (30) days written notice to the non -terminating party. A. In the event the terminal building at the Airport is damaged by fire or other accidental cause during the term of this Lease so as to become totally or partially untenantable, Lessor shall have the option to restore the leased premises to their former condition. If Lessor exercises its option to restore the premises, 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 leased premises for the uses expressed in this Agreement, Lessee's obligation to pay rent hereunder shall abate for the time and to the extent that the leased premises have been rendered untenantable. Should Lessor not exercise its option to restore the leased 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. - 5 - B. Within fifteen (15) days following the date of expiration or termination of this Agreement, Lessee shall, as required by Lessor, vacate the leased 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 Agreement. If, after being requested by the 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 termination, 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 restoration. 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. 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: American Airlines, Inc., Ccutreport IV, MD 4213, PO Box 619616, DFW Airport, TX., 7.5261-9616 - Attn. V.P Corpbrate Real Estate. 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 attorneys' fees together with all costs of court. M-Mc 3. 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 22nd LESSOR: CITY OF LUBBOCK BY' B. McMINN, MAYOR TEST: Ran tte Boyd, Cit S cretary day of August , 1991. APP OVED AS TO CONTENT: ern Case, Director of Aviation APPROVED AS TO FORM: arold Wit -lard, Assistant City Attorney - 7 - LESSEE: SABRE TRAVEL INFORMATION NETWORK, A DIVISION OF AMR, INC. Title' Specialist, Corporate Real Estate ATTEST: Secretary