HomeMy WebLinkAboutResolution - 2014-R0336 - Lease Agreement - Berry's Enterprises - Hangar Space, Other LPSIA Property - 09_25_2014Resolution No. 2014-RO336
September 2 � 2014
Item No, 6.19
1tl,,SUt,UT[ON
131' IT RESOLVI-D [3Y TI [E CITY COUNCIL O T111: CITY OF I1 1313OC'K:
T[IAT the Mayor of the City of Lubbock is hereby auchnrircol ar,�.• ol;rcctcd to cxccute for
and on behalf of thr City of Lubbock. a Lease Agreement by and between the City of l.ubbock
and Berry's Enterprises for hangar space and other real property located at the Preston Smith
International Airport, and related documents. Said Lease Agreement is attached hereto and
incorporated in this resolution as if' fully set forth herein and shall be lnclu{ICLI 1n the 1111nutes of
the City Council.
Passed by the City Council on
ATTEST:
Rohe ca Garza. Cite Secretar
APPROVED AS TO CONTENT:
September 25, 2014
GL C. R RTSQN. MAYOR
\iu
Kelly Campbell, E\ecutive Director of Aviation
APPROVED AS TO FO
first Assistant City Attorney
RES.Lease Agnes -Berry's Enterprises
B.G. i t
STATE OF TEXAS
COUNTY OF LUBBOCK
KNOW ALL MEN BY THESE PRESENTS:
LEASE AGREEMENT
THIS LEASE AGREEMENT, hereinafter referred to as the "Agrecnnent" or "Lease," is entered
into by the CITY OF LUBBOCK (referred to herein as City), a Home Rule Municipality of Lubbock
County, Texas, and BERRY'S ENTERPRISES, (referred to herein as Lessee).
WITNESSETH
WHEREAS, City owns, controls and operates the Lubbock Preston Smith International Airport
(referred to herein as Airport), situated at Lubbock, Lubbock County, Texas, and has the authority to
grant certain rights and privileges with respect thereto, including those liereinaftcr set forth; and
WHEREAS, City deems it advantageous to itself and to its operation of the Airport to lease unto
Lessee the T-Hangars and ground area described herein, together with certain privileges, rights, uses and
interests therein, as hereinafter set forth; and
WHEREAS, Lessee is an individual primarily engaged T-hangar rental service for aircraft
storage; and
WHEREAS, the Airport Board of the City of Lubbock has approved and recommends that
Lessee be granted this Agreement for the terns designated below; and
WHEREAS, the City Council of the City of Lubbock accepts the rccommendation of the Airport
Board and finds that execution of this Lease will properly serve the public interest of the citizens of the
City of Lubbock;
NOW THEREFORE, for and in consideration of the mutual promises, covenants, terms and
conditions, both general and special, as hereinafter set forth, City hereby �orants to Lessee the rights and
privileges hereinafter described; Lessee agrees to accept the duties, responsibilities and obligations as
hereinafter set forth; and the parties hereto, for theniselves, their successors and assigns, agree as
follows:
ARTICLE ONE
DEMISE OF LE'ASI{1I) PREMISES
1.01 LEASEID 11KE 11SES
For and in consideration of the leans, conditions and coveiiants of this Lease to be
Performed by Lessee, all of which Lessee accepts, City does hereby lease unto Lessee
certain property located on the west side of the Airport, more particularly described in
Exhibit "A" which is attached to this Lease, and is incorporated into and made a part of
this Lease for all Purposes [collectively referred to its "Premises" or "Leased Premises" in
this Agreement}.
Description of Leased Premises:
Land: 45,000 square feet
T-Hangars: 13.260 square feet
1.02 PURPOSE AND 11RIVIL 'GE.S
The Lessee is entitled to use t€te Leased Promises for the followin, activities:
A. Lessee may use the Lease(] Premises for conducting 'I' -hangar rental service For
aircraft storage and items related to servicing aircraft.
B. Lessee, at its own oxPonso, shall he responsible for secLiring ail Permits,
clearances, rights -of -Way and other ]matters necessary to CondLlUt bnsit)ctis ill a
lawful manner.
1.03 USE' OF AIR11010'
DLiring the term of this Lease, Lessee and its tenants shall have Free use of, in common
with others at the Airport, all runway~, taxiways, Public rantpti and Public Barking areas
available at the Airport, and the right of ingress to and egress front the above described
Promises, which right Shall extend to Lessee's employees, guests, invitees, tenants tend
patrons.
If, during the terili of this Agreement, (lie use of (lie Airport by Lessee is temporarily
suspended, restricted or interfered Willi for it period of thirty (30) days or more liar
reasons beyond the practical control of the City, in such 111anner so as to substantially
affect the use off' the Leased Premises or operation of aircraft by Less cc or i t S lcnants, all
fees during such period shall abate and the term of the Agreement shall, at cite election of
Lessee, be extended for in equivalent period of time.
Berry's Enterprises
Pa-*c 2
1.04 PUBIAC BE EFIT
Lessee agrees to operate the Leased Prcmiscs for tile: tisc and hellellt of the public and
further a0rces:
A. To use reasonable efforts to furnish good, prompt and efficient services adequate
to meet all the demands for its services at tole Airport;
B. To furnish said services on a fair, equal atld not unjustly discriminatory basis to
all users thereof'; and
C. To charge fair, reasonable and tlondiscriminatory prices for each unit of Sale or
service, provided that the Lessee may make reasonahle nondiscriminatory
discotltlts, rebates or other similar types of price reductions for volume purchases.
ARTICLE TWO
TERM
2.01 ` ERNI
The initial term cif this Agreement shalt he fora period of five (5) years beginning of)
OC'I OBER 1, 2014 and terminating oil SEPTEMBER 30, 2019.
2.02 HOLDING OVFR
In the event Lessee remains in possession of the Leased Premises after the expiration of
this Agreement or any extension thCl'COf. withcxit ally written retleWal or extension of the
Agreement, such holding over shall not he dCC111Ccl as a renewal or extetlsion of this
Lease, and may he terminated at any time by the Executive Director of Aviation of City.
ARTICLE THREE
RENTAL AND FEES
3.01 RENTALS
In consideration of the tights and privileges herein granted, Lessee shall pay to the City
the following rentals and fees:
Berry's Enterprises
Pay=c 3
A. RENTAI. I�'OR 'I'-HAN(irkR 1VIANA(;E1k ENT
A1111ua1 metal will he SEVEN THOUSAND SIX HUNDRED FIFTY AND
NO1100 DOI-LARS ($7,650.00) which shall be due and payable, in (12) equal
monthly installments of SIX HUNDRED TIIIRTY-SEVEN AND 501100
DOLLARS ($637.50).
B. C ONSUVIER PRICE INDEX
The parties hereto mutually agree that during the initial tercel of this Agreement,
and during lily renewal period, except as otherwise might he set out in this
Agreement, the rental rates will he adjusted upward or downward for each
ensuing calendar year heginning January 1, 2015, in direct proportion to the
fluctuation in the U.S. Department of Labor, Bureau of Labor Statistics Consumer
Price Index (CPI) for All Urban Consumers, Any adjustment to t11e rental rates
resulting from changes in the C P1 shall he determined by calculating the increase
or decrease in the CI'[ for the preceding twelve (12) months,
C. SECURI`ri, BADGES:
In addition to the above rental and fees, Lessee shall pay the City a processing fee
for security badges for each of Lessee's employees on the Leased Premises.
City's ExeClltiVC ❑irector of Aviation ~hall determine tile 11111e' o1 payment and tile
amount of the processing fee, cacti of which shall be reasonable and uniform for
all similarly situated tenants at till Airport.
3.02 PAYMENTS
All payments are due and payable on or before the 2i]`c' day of each month this
Agreement is in effect and ~hall he made to the City at the Office of' the EXCL'tltivl:.
Director of Aviation, Lubbock Preston Smith International Airport, 5401 N. MLK Blvd.,
Unit 389, Lubbock, Texas 79403, Lessee shall pay City a late payment charge of five
percent (5%) of the total amount of rentals payable if payment of such rentals is not made
wlM 1. due.
3.03 DEFAULT FOR FAII.URE TO PAY RENTALS OR FEES
It' Lessee fails to pay ally rent due and owing to City hereunder within fifteen (15) {lays of
the due elate, the Executive Director of Aviation ofCity shall provide written notice to the
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Page 4
Lessee. Thereafter, if the rent remains unpaid for more than fifteen ( 15) clays alter such
notice is received, City luay exercise its rights Under Article Seven of this Agreement.
ARTICLE FOUR
RIGHTS RESERVED TO CITY
4.01 Sr%FE4Y
City reserves the right to take any action it considers necessary to protect the aerial
approaclics of the Airport against obstruction, together with the right to prevent Lessee
from constructing or permitting construction of any building or other structrn•e on or off
the Airport which, in (fie opinion of City, would limit the usefulness of the Airport or
constitute a har.ard to aircraft.
4.02 MA,IN,rENANCE OF PUBLIC AREA
City reserves the right, but shall not he obligated to Lessee, to maintain and keep In repair
the landing area of the Airpot-t and all publicly -owned facilities of the Airport. Lessee
will perform no maintenance activities outside the Leased Premises without the consent
of the Executive Director of Aviation.
4.03 STANDARDS
City reserves the right to establish reasonable standards for the construction and
maintenance of and alterations, repairs, additions or improvements of' tile leased facilities.
Thiti Encludcs structural design, color, materials used, landscaping and maintenance of* tile
Leased Promises.
4.04 'TIME. OF EMERGENCY
Deering time of war or national emergency, the City sliall have (lie right to lease the
landing area and any other portion of the Airport to the United States for governmental
use and, if' any such lease is executed, the provisions of this instrument, insofar as they
are inconsistent with the provisions of the lease to the United States, shall he SLIspended.
�4.05 DEN1,:1,013 IEN'T O AIRPORT
Lessee a�0rces that City has the right to further develop or Improve the Airport as City
sees fist, re4,ardless of the desires or vies%'s of the Lessee, and without interference or
hindrance therefrom.
Berry's Enterprises
Page 5
4.06 SPONSOR'S ASSURANCE SUBORDINATION
This Lease shall he subordinate to the provisiotls Of all}! Cxistiltg or I01111V agreement
between the City and the Unitcd States concerning the operation or maintenance of the
Airport, the CXMItion nl" Which has been or may be required as it condition precedent to
the expenditure of federal funds for the development of the Airport. Should the effect of
such a-reement with the United States he to take any of the property tinder this Lease or
otherwise diminish the commercial value of this Lease, the City shall not be held llahle
thereFor.
The City Covenants u11d agrees that It will during tile, Term of this Agreement operate and
maintain the Airport as a public facility consistent with and pursuant to the Assurances
given by the City to the United States GOVCI'I1111CI1t Under federal law.
ARTICLE FIVE
RIGHTS RESERVED TO LESSEE
5.01 «'AGES
To the extent that it is applicable, Lessee shall comply with Ch. 2258, Tex. Govt. Code,
5.02 LESSEE'S muY TO REPAIR
Except as provided herein, any property of City, or for which City may be responsihlc,
which is damaged or destroyed incident to the exercise of the rights or privileges herein
oranted, or which darliage or destruction is occasioned by the negh"Cnce of Lcssm its
employees, agents, servants, patrons or invitees, shall be properly repaired or replaced by
Lessee to the reasonable Satisfaction of the ExCCU&C Director of' Aviation of'City, or in
liCLI 01' SLICII I"Cpaii' Or replacement, Lessee shall, if so reduired by the I1"xecutive Director
of Avialion, pay City money in any anulllslt reasonable to compensate the City for the
loss sustained nr CxpCIISC incurred by City as it result of the loss of, dalmage to, or
destruction of such property.
5.03 PARKING
Lessee shall at its We cost and expense provide adequate and suitable parking areas for
use by its customers. employees, patrons, guests and invitees.
Berry's Enterprises
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5.04 WARRANTY OF NO SOLICITATION
Lessee warrants that it has not employed any person employed by City to solicit or secure
this Agreement upon any agreement for a commission, percentage, brokerage or
contingctat fee.
ARTICLE SIX
f.ENERAL CONI3ITIONS
6.01 RULES AND REGULATIONS
City reserves the right to issue tltt'ou-b its EXCCLative Director of Aviation such reasonable
rules, regulations and procedures for activities and operations conducted on the Airport as
deemed necessary to protect and preserve the safety, security and welfare of the Airport
and all persons, property and facilities located thereon.
The Lessee's officers, agents, employees and servants will obey all rules and regulations
which may he promulgated from time to time by the City or its authorized agents at the
Airport, or by other lawful authority, to ensure (lie safe and orderly conduct of operations
and traffic on the Airport.
6.02 OPERATION 0 F AIRCRAFT, COMPLIANCE IVITII RULE'S AND
RIIGULATIONS
Lessee agrees to operate and conduct its businCss, including but :tot liiliitetd to the
operation of aircraft and the occupancy of said Leased Premises, at all times ill
compliance with applicable federal, stale and local rules asul rcgtalaliotts uttl in
compliance with all applicable statutes, ordinances, roles ant[ regulations affecting the
use, occupancy or ol)eratiotl of the Leased Premises and Airport. Lessee further agrees
(bat in the event that a civil penalty or tine is levied against [lie Airport as a result of
Lessee's I'ailure to comply or act in accordance with said re-ulations, statutes and/or
ordinances, Lessee diall within fifteen (15) days reimburse the Airport the full amount of
the penalty or fine and immediately correct the failure, act or omission leading to, causing
or contributing to the violation. Failure of tlic Lessee to comply with any requirement of
this paragraph ~hall be cause for immediate termination of this Lease Agreement by
City's E.eectttive Director of Aviation. Provided, however, that the duty of the Lessee to
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reimburse City is subject to City providing written notice of any potential fine or penalty.
Lessee shall be provided notice to participate irl the proceeding and defend itself, %vith
counsel of -its choice, at its own cost.
6.03 INIPROVEiVIEATS Olt ALTERATIONS
Lessee shall rl❑t make, permit or stiffer any additions, improvements of, alterations to the
l.C,ISed Premises which constitute any major structural change or Changes without first
submittiilg plans and Specifications for Such ldditiOlIS, improvements of alterations to the
Exccutivc Director of Aviation of the City and securing prior written consent from the
Exccutivc Director of Aviation. Any such additions, improvements or alterations made
with the consent of the Executive Director of Aviation shall be made at the sole expense
of the Lessee and, Unless such consent provides specifically that title to the addition or
improvements so inade shall vest III the Lessee, title thereto shall at all times remain ill
City, and such additions or improvements shall be subject to all terms and conditions of
this Agreement, provided however, that any trade fixtures installed by Lessee may be
removed by Lessee at its expense. The Lessee agrees to hold City harmless from
Mechanic's and Materialman's liens arising, from any construction auditions,
improvements, repairs or alterations effected by the Lessee. Any property installed or
added by Lessee which becomes permarlctitly attached to the Lcascd Premises shall
become the property of City upon termination of this Lease Agreement, provided
however, that any trade fixtures installed by Lessee may be removed by Lessee at its
expense.
6.04 ADVERTISING
The Lessee will erect 110 olti1001- advertising o1' identification signs and will distribute no
advertising in the Airport or oil Airport property without the prior writtctt cortseltt of the
City's Executive Director of Aviation. However, such prior written consent shall not be
required for advertising placed by Lessee with ally olther party having, the right to sell,
rent or offer Airport terminal advertising space.
6.05 SECURITY PLAN
At the regoem of the Executive Director of Aviation, Lessee .Shall submit a Security Plan
acceptable to tfle Exccutive Director of Aviation, the Airport Operations SuperViS01- aril
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the Federal Aviation Administration. Failure to Submit an acceptable Security Plan shall
be grounds for immediate termination of this Aorccrnent.
6.06 LIENS PROHIBIT FID
The Lessee shall not hind or alttentpt to Bind the City for payment of any honey in
connection with the construction, repairing, alterations, additions or reconstruction work
on the Leased Premises. and Lessee shall not permit any mcchanic's, lnaterlalnlan's or
contractor's liens to arise against the Premises or improvements thereon, or any
equipment, machinery and fixtures thereon belonging to the City, and Lessee expressly
agrees that it will keep and save the Promises and the City harntless from all costs and
damages resulting front any lions of any character created or that may be asserted through
any ad Or thing done by the Lessee,
In the event that, as a result of Lessee's actions, any mechanic's lien or other lion or order
for payment shall be filed against the Leased Premises or improvements thereon, or
against City -owned property located lhercon during Ilse initial tern] hereof, or during any
subsequent extension, Lcssec shall defend on behalf of the City, at Lessee's sole cast and
expense, any action, suit or procceding which may he brnu�Il)t (hereon or for the
enforcement of such lien or order. Failure of the Lessee to comply with any requirement
of -this section after having received fifteen Clays written notice thercot-shall he cause for
Termination of this Agreement by the City.
6.07 INSPECTION OF LI;ASFID PREIMISES
Lessee agrees that the Leased Premises will he kept reasonably clean and free of all
debris and other waste matter. City reserves the right to conduct inspections of the
Leased Premises at reasonable lltnes to Onsure tdlat fire, safety and sanitation regulations
and other provisions contained in this Lease are being adhered to by the Lessee.
6.08 RECORDS
The Lessee will maintain a list of tenants subleasing from Lessee and will provide the
❑flice of the Executive Director of Aviation With updated current list.
6.09 )JAIN'I ENANCE
The Lessee shall, at its own cast and expense, maintain the Leased Premises in a
presentable condition reasonably free of trash, debris and weeds, .utd consistent with
good business practices. Lessee shall repair all damages to Leased Premises caused by
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Page 9
its employees, patrons or business operations thereon. shall perform all maintenance and
repair to the interior, Including all 11VAC and venting systems; and shall repaint the
hangar as necessary to maintain a clean and attractive appearance. Lessee shall also
maintain any drainage struCtures or other improvements installed for the benefit of
Lessee, septic Systems, ceilings, floor coverings, locks, doors, overhead doors,
specialized ramp doors, window glass, parking lots artdlor surfaces used for employee
and/or cuslonier parking.
Upon written notice by City to Lessee, Lessee Shall be required to perform whatever
reasonable maintenance the City deents necessary. I1' said maintenance is not undertaken
by Lessee within twenty (20) days after receipt of wri[len notice. City Shall have the right
to enter Upon the Leased Premises and perform the necessary maintenance, the cost of
which shall be borne by Lessee. Lessee shall not, in any case, be required to pay for cost
of mitigation, abatement or removal of asbestos not installed by Lessee.
6.10 UTILITIE'S
The Lessee shall as5ttrttc and pay for all costs or charges for metered utility services
provided to Lessee during the initial term hereof, and any subsequent extension. Lessee
shall have (lie right, with written approval of City, to connect to any storm and sanitary
sewers and Waler and utility outlets, [lie cost of usage, extension, installation and meters,
where required, to be borne by the Lessee.
6.11 TRASH, GARBAGE, REFUSE, i?,-rc.
Lessee shall provide a complete and proper arrangement for the adequate sanitary
handling and disposal, away from the Airport, of all trash, garbage and other refuse
produced as a result of Lessee's business operations ore [lie Leased Premises.
6.12 PAY-NIEN`I' OF 'TAXES, FEES, AND ASSE?SSMENTS
The Lessee agrees to pay promptly wltcn due all fecicral, state and local governnent
taxes, license fees and occupation taxes levied can either the Leased Premises or on the
17nslness c:ondttctccl ore the Leased Premises or on any of Lessee's property used in
conrtec:tion therewith, except as provided herein.
Taxation may be subject to legal protest in accordance with the provisions of the taxing
authority whose levy is questioned. Any pretest shall be at the sale expense of Lessee.
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Delinquency ill payment of such obligations after any Protest has been settleoi shall, at the
Option nf-tlIC City, be cause for immediate termination of this Lease.
6.13 INDEMNII+ICATION AND INSURANCE,
The Lessee shall be deemed to he an independent contractor and operator respostsible to
all patties for its respective acts and omissions, and the City shall in nog way he
responsible therefore. Lessee shall indemnify and hold harmless, to the fullest extent
permitted by law, City, and City's respected officers, employees, elected officials and
agents, from and against any and all losses, damages, claims or liabilities, of any kind or
nature. which arise directly or indirectly, or are related to, ill any %Ways manner or forsrt,
the activities of Lessee contemplated hereunder. Lessee further covenants and agrees to
(lefend any suits of administrative proceedings brought against (lit City and/or City's
respective officers, employees, elected officials and/or agents on acctutsit (]['any claim for
which it is obligated to indemnify City, and to pay or discharge the full amount or
obligation of any such claim incurred by, accruing to, or imposed on City, or City's
respective officers, employees, elected officials and/or agents, as applicable, resulting
from the settlement or resolution of said suits, claims, and or admitli.strative proceedings.
In addition. Lessee shall pay to City, City's respective officers, employees, elected
officials and/or agents, as applicable, all attorney fees incurred by such parties in
enforcing Lessee's indenulsty in this section.
Indeniuifiration — Environmental Ilan. Without limititlg ally provisions of this
Agreement, Lessee shall also cicfend, indemnify and hold City and its respective officers,
employees, elected officials and agents harmless from and against all suits, actions,
Claims, demands penalties, fines liabilities, settlements, damages, costs and erPeliscs
(including but not limited to reasonable attorney's and consultant's fees, court costs and
litigation expenses) of whatevcr kind or nature, known or unknown, contingent or
othcn-vise, brought against City arising out of or in any way related to:
1. Any actual, threatened or alleged contamination by hazardous substances of the
Premises or contamination by hazardous substances of (lie Airport by Lessee or its
agents;
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2. The presence, disposal, release or threatened release of hazardous substances by
Lessee or its agents at the Airport that is ot1, from or affects the soil, air, water,
vegetation. buildings. personal property. persons, animals or othenvise:
3. Any personal injury (including wrongful death) or property damage (real or
personal) arising out of or related to hazardous substances by Lessee at the
Airport: or
4, Any violation by Lessee of any Environmental Laws that affects the Airport.
The Lessee shall carry and maintain insurance at all tunes that this Lease is in effect, at
Lessee's sole expense and with an Underwriter authorized to do husiness in the State of
Texas and acceptable to the City, against claims of general liability and workers'
compensation resulting from Lessee's business activities at the Airport.
General Liability Insurance — Lessee will carry and maintain General Liability Insurance
f«r the protection of City, naming City as an additional insured and insuring against all
claims, losses, costs and expenses arising out of injuries to persons kvhcther or not
cniployed by the Lessee, damage to property whether resulting from acts or omissiOns,
negligence or otherwise of the Lessee or any of its agents, employees patrons or other
persons, and growing out of the use of the said Leased Premises by Lessee, suclI policies
to provide not less than FIVE HUNDRED I-HOUSAND AND NO/100 UOLLARS
for Combined Single Limit General I.iahility Insurance: the aboyc
insurance coverage shall also include Ilanoar Keeper Liahility Coverage.
Workers' Compensation and Frnployer Liability — It' Lessee employs persons other than
family members. Lessee shall elect to obtain workers' compensation coverage pursuant to
Section 406.002 of the Texas Labor Code. Further, Lessee shall maintain said coverage
throughout the term of this Agreement and Shall comply with all provisions of "Title 5 of
the Texas Labor Code to ensure that the Lessee maintains said coverage. Any
termination of worker's compensation insurance coverage by Lessee or any cancellation
or nonrenev,,al of worker's compensation insurance coverage for the Lessee shall he a
material breach of this Agreement.
To the extent permitted by law, the above -mentioned policies shall all include a waiver of
subrogation. Certificates of insurance or other satisfactory' evidence of insurance shall he
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filed with the City's Executive Director of Aviation prior to entry upon the Premises by
the Lessee. "floe General Liability policies shall n�1111C the City as an addlI1011a1 insured,
require the insurer to notify the Executive Director of Aviation of any alteration, renewal
or cancellation, and remain ill full force and effect until "It least test ( 10) days after such
lattice of alteration, renewal or cancellation is received by the Executive Director of
Aviation.
iuz.troi and f:xtencled Covcra.,e — Lessee shall procure front a company authorized to do
borsinCss in the State of Texas and keep in force Hazard and Extctided coverage insurance
up011 the LCSseC owned buildings IoeatCd on the I.Cascd 171'ClttiSC5 to 90'7v of tflc lull
irlsurahlC vahne and shall furnish City with evidence that such coverage has been
procured and is being maintained. City shal€ be named as additional insured on rile
policy.
6.14 NON-DISCRIMINATI[}N PRAC'F1CI:S
Lessee, its agents and employees will not discriminate against any person or class of
persons by reason of age, sex, race, handicap, religion or national origin in providing any
services or in the use ofatty of its facilities provided for the Ixrblic. Lesscc further agrees
to Comply with such enforcelncrtt procedures as the United States Government might
demand that the City take in order to comply with the Sponsor's Assurances.
Lessee agrees not to illegally discriminate against any employee or applicant for
etttploymcnt hCCaUse of age, sex, race, handicap, religion or national origin.
6.15 RUSINI?SS S[)LIC:I' WHONS
All of Lessee's business operations and solicitations will be confined to the Leased
Premises or such other pi-cmiscs at the Airport that have heels leased to Lessee.
6.16 PROHIBITION OF SUBLEASES AND ASSIGNMENTS
The Lessee will not directly or indirectly assign, sublet, sell, hypothecate or otherwise
transfer this Lease or any portion of the Leased Premises without the prior written
Consent of the City's Executive Director of Aviation.
6.17 R I G I H'S 0 F U'I' E'RS
It is clearly understood by the Lessee that no right Or privilege has been granted which
would opCRQC to prevent any person, first or corporation operating an aircraft at the
Airport front performing any services on its own aircraft with its own regular employees
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(includiIg, but not limited to, maintenance and repair) that such person, firm or
corporation may choose to perform.
6.18 ACCESS
Lessee agrees to control all access to the aircraft operations area (AOA) tlirough the
Leased Premises and through gates assigned to or controlled by Lessee so as to preN,ent
unauthorized entry to the airfield by persons, animals or vehicles. In (lie event that
unauthorized access to the ACA is gained througrlt the Leased Premises or any area which
Lessee controls or is obligated to control, any fines or penalties assessed by tfie Federal
Aviation Administration shall be the responsibility of' the Lessee and Lessee hereby
agrees to pay all such lines or penalties withnut delay and make any and all requested
changes in operations or facilitics nccessary to maintain Airport security and prc%,cnt
reoccurrence of any unauthorized entry. Failure to comply with this paragraph shall be
cause for immediate termination of [his Lease Agreement by City.
6.19 VEHICULAR MOVEMENT
Exccpt as specifically authorized by the Executive Director of Aviation , Lessee will not
permit the driving of vehicles by enlplayc:cs, CustotltcrS, gucstS or inVitees Oil the apron,
taxiways or runways.
0.21) EXCLUSIVITY
It is understood and a -reed that nothing herein contained shall be construed to grant or
authorize the "t'antill- of an excltisiVe right to conduct ally aeronautical activities,
including, but not limited to charter flights, pilot training, aircraft rental and sightsecing,
aerial photography, crap dusting. aerial advertising and Surveying, air carrier operations,
aircraft sales and service.~, sale of aviation petroleum products whether car not conducted
in conjunction with other aeronautical activity, repair and maintenance of aircraft, gale of
aircraft parts, and any tither activities which because of' their direct relationship to the
operation of aircraft can be regarded as a aeronautical activity.
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ARTICLE SEVEN
TERNIINA,rjON, CANCELLATION
7.01 TEIRMINATIQN
This Lease shall lertmnate at the end of the term and any extension thereof. Lessee shall
have no further right or interest in any of the Promises or improvements hereby demised,
except as provided herein.
7.02 TFIRMINATION BY LESSIT
This Lease shall be SubJect to cancellation by Lessee upon t}le OCCUrrence of any one or
Illore of the following events:
1. The permanent abandonment of the Airport by the City as an air terminal.
2. Tllc 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 manlier that substantially restricts Lessee f'or a
period of at least ninety (90) days from operating thereon.
3. The issuatice by ally court of competent ,jurisdiction of an injunction in any way
preventing or restraining 1110 LISC and [operation of the Airport for a period of' at
least ninety (90) days.
4. The default of the City in the performance of any covenant or agreement herein
required to he perforated by the City and the failure of the City to remedy such
default for a period of* sixty (60) days after receipt from Lessee of written notice
to remedy the same.
Lessee May exercise such right of termination by giving sixty (60) days advance written
notice to the City at any time after the lapse of the applicable periods of time and this
Lease shall ternlillate as of the sixty first (61") day after such notice is given. Rental Clue
hereunder shall be payable only to the effeCli■re (late of said tertninatioil.
7.03 TERMINATION BY C:1'I'Y
This Lease shall he subject to cancellation by City after the happening of one or more of
the following events:
1. The taking by a court of competent jurisdiction of Lessee and its assets pursuant
to proceedings I71'Uttgill Wider tile provision% of any federal reorganization act.
2. 'fhe appointment of a receiver for Lessee's assets.
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3. The divestiture of Lessee's assets by other operation of law.
4. The Lill andoiiinent by Lessee of the Premises at the Airport for a period of thirty
(30) days or more.
5. The failure by Lessee to pay any rentals or other charges hereunder after notice as
specified above.
6. The default by Lessee in the perfonnance of any covenant or agreement licreirl
required to be performed by Lessee and the failure of Lessee to remedy such
default for a period of fifteen (15) days after receipt from the City's Executive
Director of Aviation of written notice to rcilledy the sa[lle.
7. The ]awful 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 planner as to substantially restrict Lessee for a
period of at least ninety (90) days from operating thereon.
City may exercise such right of termination by giving ,kritten notice to the Lessee to
cot -rest or Cure suCll clCfault, failure to perform or breach. If within thirty (30) clays from
the date of such notice, the default, failure to perform or breach complainer) of shall not
have been corrected in a planner satisfactory to the City, then in such event. City shall
have the right. at once and without further notice to Lessee, to declare this Agreement
terminated.
Once Agreement is terminated, City's agents may enter upon the Leased Premises and
take immediate possession of the same and relnove Lessee's effects. Any rental due
hereunder shall be payable to said date of termination.
It is agreed that fallt.11-C to declare this Lease terminated Upon the default of Lessee for any
of the reasons set forth above shall not be construed as a waiver of any of the City's
rights hereunder or otherwise bar or preclude City from declaring this Agreement
cancelled as a result of any subsequent violation of any of the terms or conditions of this
Agreement.
7.04 REisPLACENIE'N'r Al 'l'EIR DANIAGE
It is agreed between the parties hereto that in the event the Leased Premises are damaged
by fire or other accidental cautic during the initial term of this Lease so as to become
totally or partially untenantable, the City shall have the option to restore the Premises to
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Page 16
their Fortner condition. if the City elects to exercise the option, the City shall give Lessee
notice ill writing of its election within thirty (ail) days of the occurrence of such damage.
If the City elects to restore (lie Premises, the City ,shall proceed with duo diligenec and
(here shall be an abatement of the rent until repairs have been made for the tithe and to
the extent for which the Premises, or part thereof, have been untenatltable. Should the
City riot exercise the option to restore the Premises, the lease of such untenantable
portion of the Premises shall cease and terminate effective ective oil tile date of damage by fire
or ether accidental cattle.
7.05 CONFLIC r UI{' INTEREST
The Lessee acknowledges that it is informed that Texas law prohibits contracts between
the City of Lubhock and its "officers" and "employees," and that the prohibition extends
to officers and employees of the City of Lubbock agencies, such as City -owned wilitics,
and certain City of Lubbock boards and commissions, and to contract with any
partnership, corporation or other organization in which tile off cers or employees have a
substantial interest. Lessee certifies (and this Agreement is made in reliance thereon) that
neither the Lessee nor any person having an interest in (his Agreement is an officer or
employee of the City of Lubhock or any of its agencies, hoards or commissions.
7.06 REMOVAL OF LESSE.E'S PROPERTY
The Lessee shall have the right, within thirty (30) days after the termination of tills Lease,
whether such termination comes upon expiration of the initial term, any extension or
otherwise under any provision of (Eris Lease, to remove from the Leased Premises all of
Lessee's property which has not become the property of the City, but Lessee shall restore
the Premises to the original condition, normal wc,sr and tear excepted. Tile City,
however, shall have a hen oil all of Lessee's property to Secure any unpaid rentals or
miler reVctlue due the City; and Lessee's right to remove property from the Leased
PreIllises Is conditioned upon all atllottntl dUe the City from Lessee having been paid ill
full. Unless a renewal agrccmctll is executed, property left on rile Premises after thirty
(30) days from the slate of termination of this Agreement ~hail be deemed abandoned and
will become the property of the City, and may he disposed of as the City sees fit, without
any liability to (he Lessee to account for the proceeds cif' any sale; and the City, at its
option, may require Lessee to remove the abandoned property and may charge rent from
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Page 17
the elate of expiration or termination of this Agreement through the day of final removal
of the property, or of notification to the Lessee of the abandonment of the property and
taking by the City, as the case may be.
7.07 TERMINATION OF LEASE AND SURRENDER OF LEASED PREid1ISES
The Lessee covenants and agrees that at the expiration of the initial term of this Lease, or
any extension, or upon earlier termination as provided elsewhere in this Agreement,
Lessee will quit and surrender the Leased Premises and the improvements in good
condition, reasonable wear and tear expected, and the City shall have the right to take
possession of the Leased Premises and (tic improvements, subject to the limitations
expressed in Article Seven, of this Lease, with or without process of law.
ARTICLE EIGHT
MISCELLANEOUS PROVISIONS
8.01 NOTICES
Notices to the City required or appropriate under this Agreement shall be deemed
sufficient if in writing and hand delivered or mailed, registered or certified wail, postage
prepaid, addressed to the Executive Director of Aviation, Lubbock Preston Smith
International Airport, 5401 N. MLK Blvd., Unit 389, Lubbock, Texas 79403. Notices to
the Lessee shall be deemed sufficient if in writing and hand delivered or mailed,
registered or certified mail, postage prepaid, addressed to Berry's Enterprises, P. a. Box
6414, Lubbock, Texas 79493.
8.02 ENTIRE AGREE TENT
This Lease COnStitUteS the entire Agreement between the City and Lessee, and any other
written or parole agreement with the City is expressly waived by Lessee.
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EXECUTED this day of
THE CITY OF LUBBOCK
BY:
GLEN ORE TSON, MAYOR
►ENW-li*1IA
Rcbc ca Garza, City Secretary
APPROVED AS TO CONTENT:
Kelly Campbell, Executive Director of Aviation
APPRO M
i cli Satterwhite, first Assistai� City Attorney
2014.
BERRY'S ENTERPRISES
BY: -
BRYA -RRY
Title: OWNER
Date: 7 1
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i-Hangars - 13,260 sq.ft
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s
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Berry's Enterprises
i5 Exhibit A
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