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Home My WebLink AboutResolution - 4368 - Agreement To Terminate Lease & Sublease-G Greenstreet Inc-Hanger, LIA - 01_27_1994Resolution No. 4368 January 27, 1994 Item #24 RESOLUTION WHEREAS, on or about September 27, 1991, the City of Lubbock entered into a Lease and Sublease Agreement with G. Greenstreet, Inc. which required the Lessee to construct a forty thousand (40,000) square foot hangar at the Lubbock International Airport to be subleased to the City for a period of twenty (20) years; and WHEREAS, the Lease and Sublease Agreement between the City and G. Greenstreet, Inc. contains "buyout" provisions which permit the City to terminate the Agreement prior to its expiration date by paying to Lessee a lump consideration set forth in the Agreement; and WHEREAS, the City Council believes that it would be in the best interest of the citizens of the City to terminate this Lease and Sublease Agreement by paying to Lessee and its assigns jointly the sum of NINE HUNDRED THOUSAND AND NO 100/DOLLARS ($900,000.00) in accordance with the buyout provisions contained in such Agreement; NOW THEREFORE: BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: SECTION 1. THAT the Lessee and its assigns for the Lease and Sublease Agreement entered into between the City and G. Greenstreet, Inc. on or about September 27, 1991, be advised of the City's desire to terminate such Agreement pursuant to the buyout provisions in the document which permit termination prior to the expiration date. SECTION 2. THAT the Chief Accountant for the City of Lubbock is hereby authorized and directed to pay Lessee and its assigns jointly the sum of NINE HUNDRED THOUSAND AND NO/100 DOLLARS ($900,000.00) to terminate the above -described Lease and Sublease Agreement, subject to the Lessee and its assigns executing in favor of the City any and all necessary documents releasing and waiving or abandoning any claimed title, right of possession, right of entry or similar claim to the property described in the Agreement. SECTION 3 THAT the Mayor of the City is hereby authorized and directed to execute for and on behalf of the City an Agreement to terminate Lease and Sublease and such other documents as may be necessary to terminate the Lease and Sublease Agreement with G. Greenstreet, Inc. executed on or about September 27, 1991. Passed by the City Council thi ay of January 1994. 0�1 ATTEST: (2-zt� a c� Betty M. J hnson,(City Secretary APPROVED AS TO CONTENT: o ert Massengale, Assista City Manager APPROVED AS TO FORM: A&-4� Harold Willard, Assistant City Attorney HW:dp\G:\ccdocs\Green.Res January 14, 1994 Resolution No. 4368 January 27, 1994 Item #24 AGREEMENT TO TERMINATE LEASE AND SUBLEASE STATE OF TEXAS § KNOW ALL MEN BY THESE PRESENTS: COUNTY OF LUBBOCK § WHEREAS, on or about September 27, 1991, the City of Lubbock, Texas, herein called "City," and G. Greenstreet, Inc., herein called "Lessee," executed a Lease and Sublease Agreement (the "Agreement") in which Lessee agreed to construct and then sublease to the City for good and valuable consideration a forty thousand (40,000) square foot hangar facility at the Lubbock International Airport; and WHEREAS, Lessee constructed such hangar facility and subleased the same to the City for a period of twenty (20) years in accordance with the terms, conditions and specifications contained in the Agreement; and WHEREAS, Lessee assigned all its right, title and interest in and to the Agreement, as amended, to Gary Greenstreet, Tom Brown, Don Denton and David Wood, who subsequently assigned their rights to receive rental payments under the Agreement to the Lubbock National Bank, all of whom are collectively herein called "Assignees;" and WHEREAS, the Agreement contained "buyout" provisions which permit the City to terminate the Agreement prior to its expiration date by paying to Lessee a lump sum consideration set forth in the Agreement; and WHEREAS, the City desires to terminate the Agreement pursuant to the buyout provisions in the document which permit termination prior to the expiration date; and WHEREAS, Lessee and the undersigned Assignees, for good and valuable consideration have all agreed to allow the City to exercise its buyout option and terminate the Agreement; NOW THEREFORE: The undersigned City, Lessee and Assignees hereby agree as follows: I. City agrees that it will pay Lessee and all of the undersigned Assignees jointly the sum of NINE HUNDRED THOUSAND AND NO/100 DOLLARS ($900,000) to terminate the Lease and Sublease Agreement between City and Lessee executed on or about September 27, 1991, and all amendments thereto. Don Denton David Wood 7606 University Avenue Lubbock, Texas 79423 LUBBOCK NATIONAL BANK avid Harm n, Se or Vice President P. O. Box 6100 Lubbock, Texas 79493 Agreement to Terminate Lease and Sublease -- G. Greenstreet, Inc. Page 3 THE STATE OF TEXAS COUNTY OF LUBBOCK § BEFORE ME, a Notary Public, on this day personally appeared Gary Greenstreet, known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same for the purposes and consideration therein expressed, individually and as president of G. Greenstreet, Inc. and as the act and deed of said corporation. th GIVEN UNDER MY HAND AND SEAL OF OFFICE this 05 day of 1994. a Not Publik in and for the State of Texas p My Commission Expires: THE STATE OF TEX t*1111 1111%%%§ COUNTY OF LUBBOCK § BEFORE ME, a Notary Public, on this day personally appeared Tom Brown, known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same for the purposes and consideration therein expressed. _ GIVEN UNDER MY HAND AND SEAL OF OFFICE this cis day of 1994. 0st; �E �C7 Not luH64n and for the tate of Texas ?" �lgTF r jE�p My Commission Expires: Af g ")(PIPES .. ` Agreement to Terminate Lease and Sublease — G. Greenstreet, Inc. Page 4 THE STATE OF TEXAS COUNTY OF LUBBOCK BEFORE ME, a Notary Public, on this day personally appeared Don Denton, known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE this�J' day of �iCiM�%la/►� �I , 1994. THE STATE OF Q.ZEE C.'' PUS • ;� �!i �Nk h27-9 COUNTY OF LUBBOCK § wy�&A'o 'dtam q- Notary(Publiin and for the State of Texas My Commission Expires: "5-,)1-q 7 BEFORE ME, a Notary Public, on this day personally appeared David Wood, known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE this' day of 1994. in and for th* State of Texas Expires: 5- f r l 1 Agreement to Terminate Lease and Sublease -- G. Greenstreet, Inc. Page 5 THE STATE OF TEXAS COUNTY OF LUBBOCK BEFORE ME, a Notary Public, on this day personally appeared David Harmon, known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same for the purposes and consideration therein expressed, as senior vice president for the Lubbock National Bank and as the act and deed of said Bank. GIVEN UNDER MY HAND AND SEAL OF OFFICE this t_ day of /ucQ�c c 1994. / ''-ail L� {�, (,/ ✓"j�'L Notary Public in and for the State of Texas My Commission Expires: % -/ - % THE STATE OF TEXAS § COUNTY OF LUBBOCK § BEFORE ME, a Notary Public, on this day personally appeared DAVID R. LANGSTON, known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same as the act and deed of the CITY OF LUBBOCK and as its MAYOR, for the purposes and consideration therein expressed and in the capacity therein stated as the act and deed of said City. GIVEN UNDER MY HAND AND SEAL OF OFFICE this -,2 day of J—A a Oct r 1994. LON METH WALKER Ilrrf►11i kftbd1V= Notary Public, Lubbock County, Texas W Or. G*n 10-396 My Commission Expires: /o -23- 5?6 HW:da/hwd1/A-GRNSRT.doc January 18, 1994 Agreement to Terminate Lease and Sublease — G. Greenstreet, Inc. Page 6 H. Lessee and the undersigned Assignees acknowledge the City's right to terminate the Agreement prior to its expiration date in accordance with numbered paragraphs I and I of Section H of the Agreement. In consideration for the City's payment of the sum necessary to terminate the Agreement, Lessee and the Assignees hereby release and waive or abandon any and all claims to the title, right of possession, right of entry, and similar claims to either the realty or the improvements described in the Agreement, as well as the right to receive any further rental payments. In addition, Lessee and the Assignees agree to prepare and execute all documents necessary to release any and all Hens and other encumbrances on such realty or improvements, including but not limited to a Deed of Trust dated March 18, 1992, and recorded in Volume 3825, Page 304 of the Real Property Records of Lubbock County, Texas, and a Deed of Trust dated August 30, 1993, and recorded in Volume 4354, Page 100 of the Real Property Records of Lubbock County, Texas. IV. City hereby acknowledges and agrees that upon release of all liens or other encumbrances affecting the realty and improvements described in the Agreement, neither Lessee nor the Assignees shall have any further obligation to City under the Agreement, or under any amendments thereto. WITNESS OUR HANDS this /27th dNa of _January , 1994. L VID R. LANGSTON,WYOR ATTEST: Betty NO Johnson, dity Secretary APP OVED AS TO CONTENT: . Robert Massengale, Assistant ity Manager APPROVED AS TO FORM: &azz arold Willard, Assistant City Attorney Agreement to Terminate Lease and Sublease -- G. Greenstreet, Inc. Page 2