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HomeMy WebLinkAboutResolution - 132 - Supplemental Agreement - Hill Rent A Car Co - Additional Operations Space, LIA - 04_12_1979JCR:cl RESO #132 - 4/12/79 RESOLUTION S^' z 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 Supplemental Agreement between the City of Lubbock and Hill Rent A Car Company, 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 1Zth _day of April ,1979. WE T, MAYOR ATTEST: ',-Ekrelyn Gaf a, City S r a —Treasurer APPROVED AS TO CONTENT: Marvin Coffee, Dire of Aviation APPROVED AS TO FORM: ohn C. Ross, Jr., City A torney RESO #132 - 4/12/79 STATE OF TEXAS 9 q SUPPLEMENTAL LEASE AGREEMENT COUNTY OF LUBBOCK M Supplement to Rent Car Lease Agreement dated January 1, 1977 between Hill Rent A Car Company and the City of Lubbock. W ITNE SSE TH WHEREAS, Lessor owns and operates the Lubbock International Airport located in Lubbock County, Texas (hereinafter called the Airport), and WHEREAS, Lessor deems it advantageous to itself and to its operation at the Airport to lease unto Lessee additional land described herein, and WHEREAS, Lessee is a corporation primarily engaged in rental car activities, and WHEREAS, Lessee desires and has indicated a willingness to lease from Lessor additional property in conjunction with its existing Rent Car Lease Agreement, WHEREAS, Lessee agrees to make improvements to said property including but not limited to paving and fencing according to plans and specifications to be approved by Lessor; NOW THEREFORE: ARTICLE I Lessor does hereby lease unto Lessee additonal ground area as hereinafter specifically set out: A. Description of Ground Area An area 50 ft. x 100 ft. consisting of 5, 000 sq. ft. located immediately east of the original ground area set forth in Exhibit B of the original lease and further described on Exhibit D attached hereto. B. Rental The ground rental as defined above will be at the current ground rental rate of $.049 per sq. ft. per year or $20. 42 per month and will be adjusted upward or downward for each ensuing year beginning January 1, 1980 in direct proportion to the fluctuation in the United States Department of Labor, Bureau of Labor Statistics Cost of Living Index. For the purpose of computing all adjustments, the Cost of Living Index as of January 1, 1979 shall be construed as the base period. -1- • h• ARTICLE II A. The term of this agreement will run concurrent with the Rent Car Lease Agreement herein mentioned. B. All terms and conditions contained in that certain lease agreement executed on the 7th day of March, 1977 between the parties hereto shall apply to this lease agreement as if fully set out herein. ATTEST: City Secretory " / lv (/ // APPROVED AS TO FORM: y Attorney ATTEST: A4�� Secretary CITY OF LUBBOCK_,,-"" U ayor APPROVED AS TO CONTENT: Di a for of Aviatio LESSEE: Hill Rent Car Company. Inc. By esident -2- � I _ I ADDITIONAL GROUND LEASE AREA THIS SUPPLEMENTAL AGREEMENT M � N' N,C.J 100'_. • i 7H1 1 T 'T `•F" T-I. SECTION IDEN" EXHIBIT D 100' iff � NATIONAL RENT CAR HILL RENT A CAR COMP. 5� ORIGINAL GROUND LEAS ! AREA E 5� � 1 if �0_ _ 40_'_ 'O1NTI EXTENDED gyp' b c 0 1 M Ir! If) 150� . 25.�,_ 75 75 -r 25, Ifo a _ t 1 � 4 0 M I � M I 'F-z THE STATE OF TEXAS 1 KNOW ALL MEN BY THESE PRESENT: COUNTY OF LUBBOCK LEASE AGREEMENT THIS AGREEMENT entered into by the City of Lubbock, a Home Rule Municipality of Lubbock County, Texas, acting through the Lubbock HILL RENT A CAR CO., INC. Regional Airport Board and :i�Main Street, Lubbock, Texas 79401 of Lubbock County, Texas. ARTICLE ONE LEASE OF DESCRIBED PREMISES The City of Lubbock, (referred to as the "CIITaY'"), upon the mutual execution' of this agreement, does lease and demise to ',��y�, HILL RENT A CAR CO. , I. (referred to as -"LESSEE"), the following premises located at the Lubbock Regional Airport, -(referred to as the. "AIRPORT"), in Lubbock County, .Texas; A. TERMINAL.- A description of these locations are shown on the attached and incorporated "Exhibit A". B. GROUND - A description of these locations are shown on the attached and incorporated "Exhibit B". C. CLOSE -IN VEHICLE PARKING AREA A description of these locations are shown on the attached and incorporated "Exhibit C". (A description of these locations is shown.on the.attached and incorporated "Exhibit A, Exhibit B, and Exhibit C") ARTICLE TWO TERM The term of this lease shall be for five (5) years, beginning January 1, 1977 and terminating December 31, 1981 ARTICLE THREE USE OF PREMISES The LESSEE is granted for the stated terms and conditions, a non- exclusive privilege of conducting a transient automobile rental service from the leased premises and for no other purpose. The number of passenger car rental concessions at the AIRPORT shall be no more than four (4) for the full term of this agreement. ARTICLE FOUR RENTALS, RECORDS, AUDIT AND PLACE OF PAYMENT A. RENTAL 1. Terminal: . The --LESSEE shall pay to the CITY as rental the following: Ten per cent (1016) of LESSEE'S annual gross revenue from its business operation from the AIRPORT or $20, 000. 00, whichever is the greater amount. The rental is payable month by month at the rate of ten per cent (1016) of the preceeding month's gross revenue. The monthly rental payments being due on or before the loth day. of each month accompanied by .a verified statement showing the preceeding month's gross revenue broken down between (1) time and mileage charges and (2) insurance policy or insurance waiver charges. For determining the rental due the CITY, gross -revenue shall include the following: (1). All revenues received as to the time mileage charges for rental -of automobiles, trucks or other vehicles; (21. Reimbursements of or credits allowed to customers for gasoline and oil purchased by customers; (3). Charges for insurance policies sold the customer as well as any charges made the customer for insurance deductible waiver features. Payment received from customers covering the costs of damages to auto- mobiles while rented or from emergency repairs made by the customers shall not be included in gross revenue. 2. Ground lease . (Service Facility) The LESSEE shall pay to the CITY ground lease for the purpose of constructing a service facility 20,000 square feet of exclusive lease area, at $.042 per sq. ft. per year. The rental rate will be adjusted upward or downward for each ensuing year beginning January 1, 1978, in direct proportion to the fluctuation in the U.S. Department of Labor, Bureau of Labor Statistics Cost of Living Index. For the purpose of computing all adjustments, the Bureau of Labor Cost of Living Index as of January 1, 1977, shall be construed as the base period. (2) 3. Close -in vehicle parking area (ready car areal' : THREE AND 50/100 ($3: 50) DOLLARS per space per month in advance for its allocated parking spaces. Payment shall be received by the CITY, on or before the loth day of each and every month during the term of this lease. 4. Counter area: The LESSEE shall be provided space for counter area within.the baggage claim area as shown on Exhibit "A". B. RECORDS. The LESSEE, following accepted accounting practices and procedures, will maintain true and accurate book, records and receipts which will show all of the gross revenue of all business transacted upon and within the AIRPORT. Within ninety days after the end of each calendar year during the term of this lease, or any extension thereof, LESSEE shall submit to the CITY, a verified statement of its gross revenue -for the preceeding year of operation: Such statement shall be certified by an independent Certified Public Accountant and shall be.accom- panied by LESSEE'S payment to the CITY for the previous year of business and-, payment due for such year of operation. In the event LESSEE'S payment to the CITY for the previous year of business operation exceeds the amount required by this contract, the CITY shall reimburse' LESSEE with an amount equal to the difference between the sum required and the sum paid. If this lease is terminated on any date other than the end of a calendar year, the statement and additional payment, if any, on the gross revenue required by this Article shall be submitted within sixty (60) days after the date of such termination. C: AUDIT. All books, records, and receipts of all business transacted upon and within the AIRPORT will be kept or maintained at the AIRPORT or other place acceptable to the Director of Aviation, and will be available for inspection and examination during regular office hours by the Director of Aviation or authorized representatives of the CITY. For the purposes of determining accuracy of the monthly and annual statements of gross revenue required, the Director of Aviation may authorize the making of a spot test audit and base the findings for the entire period upon such audit, provided that the audit shall include at least twenty-five per cent (25%) of (3) the total time of the period audited. In addition, the Director of Aviation shall have the right during any one calendar year of this lease to authorize one audit of LESSEE'S records pertaining to its operation on the AIRPORT. Such audits shall be undertaken by a reputable firm of independent Certified Public Accountants satisfactory to the CITY. The cost of such audit shall be borne one-half by LESSEE and one-half by the CITY, unlei results of the audit reveal a discrepancy of more than five per cent (5010) between gross revenue reported in accordance with Section B and the gross revenue as determined by audit for any twelve-month period. In case of a discrepancy of more than five per cent (50/6), the full cost of the audit shall be borne by the LESSEE. D. PAYMENT. All payments that become due and payable by the LESSEE shall be made to the CITY OF LUBBOCK at the Office of the Director of Aviation, Lubbock Regional Airport, Lubbock, Texas, or as specified by the City Secretary -Treasurer. E. Any action taken by the LESSEE to induce its patrons or patrons of other car rental concessionaires at the AIRPORT to rent or receive vehicles in such a manner and at such places so as to diminish the gross revenue of car rental concessions under this agreement shall constitute a material breach hereof and a cause for the termination of this agreement by the CITY. ARTICLE FIVE OBLIGATIONS OF THE CITY A. CLEAR TITLE. The CITY covenants and agrees that at and until the granting and delivery of this lease it is well seized of the leased premises and has good title, free and clear of all liens and encumbrances having priority over this lease; and that the CITY has full right and authority to lease the premises described in the contract. B. A'lAINTEA•ANCE OF AIRPORT. The CITY covenants and agrees that it will during the period of this contract operate and maintain the AIRPORT as a public facility consistent with and pursuant to the Sponsor's Assurances given by the CITY OF LUBBOCK to the United States Government under the Federal Airport Act. (4) C. CONDITIONS AND MAINTENANCE OF PREMISES. The CITY shall assume no responsibility as to the condition of the leased premises and shall not assume responsibility*formaintenance, upkeep or repair necessary to keep the premises in a safe and serviceable condition. The CITY shall maintain roads, which may be relocated, on the AIRPORT access to the leased premises in a good and adequate condition for use by cars and trucks and shall maintain free and uninterrupted access to the leased premises over the roads at all times. ARTICLE SIX OBLIGATIONS OF LESSEE A;-. NtT LEASE. This lease shall -be without cost to the CITY for the development, maintenance and improvement of the leased premises. It shall be the sole responsibility of the LESSEE to keep, maintain, repair and operate the entirety of the demised;- premises and all improvements and facilities placed on the leased premises at LESSEE'S sole cost and expense. B. PRIVILEGES AND CONDITIONS. The CITY grants to the LESSEE the following general privileges, uses and — rights, all of which are subject to the terms, conditions and covenants herein set forth and all of which shall be non-exclusive on the AIRPORT: 1. The general unrestricted use of all common terminal facilities and improvements which are now or may hereafter be connected with or appurtenant to the terminal building in such manner as may be necessary or convenient to the conduct of LESSEE'S business. 2. The right of ingress to and egress from the leased premises over and and across common or public roadways serving the AIRPORT for LESSEE, its agents and employees, patrons and invitees, suppliers of service and furnishers of materials. The rights granted being subject to such ordinances, rules and regulations, existing or later promulgated. 3. The LESSEE is here granted the privilege of constructing improve- ments within the AIRPORT upon the leased premises as follows: a. Terminal: Concession Counter; b. Grounds: Vehicle service building and or canopy and vehicle storage area. _. The LESSEE shall have the right to and shall provide for the location, construction, alteration, extension, erection of new or existing improvements, maintenance and removal of of improvements, in any lawful manner, upon the leased premises, for the purpose of conducting a transient automobile rental service provided, that all plans and specifications for the construction, alteration, _ extension or erection of facilities and improvements, including landscaping, shall be in com- pliance with applicable ordinances of the CITY OF LUBBOCK and shall require the written approval of the Director of Aviation before any construction or installation may be undertaken. C.. MAINTENANCE.-_ 1 The LESSEE -shall; at its own expense, provide janitorial and custodial services in all .its leased premises... Said .services may. be provided by LESSEE alon or by LESSEE in conjunction with other tenants who are now or who may hereafter be LESSEE at the AIRPORT. 2. The LESSEE accepts the leased premises in their present condition and shall, at its sole cost and expense, maintain the leased premises, buildings, improvements and appurtenances, in a presentable condition consistent with good business practice and equal appearance and character to similar improvements in the terminal building and parking and service area. The,LESSEE shall repair all damage to the leased premises or CITY owned property caused by its employees, patrons or its operations upon the AIRPORT. The CITY shall be the sole judge of the quality of maintenance and upon written notice from the Director of Aviation, the LESSEE shall be required to perform such maintenance as the CITY deems necessary. Failure by LESSEE to. comply within thirty (30) days following receipt of the written notice from the Director of Aviation shall give the CITY the right to enter upon the leased premises and perform the necessary maintenance, the cost of which shall be borne by the LESSEE. D. PROPERTY PERMANENTLY AFFIXED TO PREMISES. ' Any property belonging to LESSEE which becomes permanently attached (6) to the premises, shall become the property of the CITY upon termination of this contract whether upon expiration of the primary term or earlier under any pro- vision of this lease agreement, except the following named improvements shall be treated in this manner: 1. Paving, fencing, fuel storage tanks and fuel lines shall be amortized over a period of eight (8) years. In the event that the LESSEE herein is not the successful bidder at the end of this term, the new operator, if one is accepted, shall purchase the above named improvements from the LESSEE paying the value of the remaining unamortized portion; otherwise, such improvements shall become the property of the CITY. 2. Service buildings constructed by LESSEE remains the property of LESSEE. In the event. LESSEE is not a successful bidder to continue operations at the end of this term the new LESSEE and this LESSEE should negotiate for the purchase of the service building. If the two parties are unable to reach an agreement on the purchase price each party shall have an appraiser designated and a third party appraise for the fair market value. The average of the three appraisals shall be binding as the agreed price of the property. If for some reason the LESSEE terminate its operations, the CITY has the first right of refusal to purchase at the fair market value. 3. Counters in the terminal building are considered the property of the CITY and will not be removed. E.' REMOVAL OF LESSEE'S PROPERTY The LESSEE shall have the right, within fifteen (15) days after the termination of this contract, whether such termination comes upon expiration of the primary term or otherwise under any provision of this contract, to remove from the premises all of its furnitures, fixtures, equipment and furnishings which have not become the property of the CITY and it shall have the duty to restore the premises to their original condition, normal wear and tear alone excepted, provided the CITY shall have a lien on all of LESSEE'S property to secure any unpaid rental or other charge due to CITY, and the right of removing LESSEE'S property is made upon the con- dition that all amounts due and owing to the CITY have been paid in full by the LESSEE. Property left on the premises after thirty (30) days from the date of termination of the contract, no renewal agreement having been executed. shall be deemed (7) abandoned and will become the property of the CITY and may be disposed of as the CITY sees fit, without liability to account to the LESSEE for the proceeds of and sale; and provided that the CITY, at its option, may charge rent from termination of the contract through the day of final removal of the property or of notification to the LESSEE of the abandonment of the property and taking of the CITY, as the case may be, which rent shall not be less than the fixed rent or minimum guarantee required to be paid by the LESSEE to the CITY. F. .PARKING. The Director of Aviation shall, from time to time, allocate among the various contract Rent Car Operators the parking spaces in the Ready Car Area of the AIRPORT in proportion to the number of vehicles regularly available for rental by the Operators and their business operations reflected by gross revenue. The LESSEE agrees to accept the parkin spaces allocated to it and confine its automobile parking to that area. No additional parking area has been provided (except in exclusive leased service area) for the parking of LESSEE'S vehicles and LESSEE is prohibited from parking its vehicles on any of the curbs, or entrance roads of the terminal area. G. SUBORDINATION OF LIEN. Any person or firm holding a lien against any property to be used or installed by the LESSEE upon the leased premises shall execute a subordination agreement with the CITY, subordinating the lien against any item to the CITY'S lien to secure payment of all amounts due theCITY under this contract. The LESSEE shall file a copy of each subordination agreement with the Director of Aviation. H. STANDARD OF SERVICE. The LESSEE shall conduct a first class transient automobile rental service, providing adequate service at all times to meet the demands for such service on the AIRPORT. The LESSEE agrees to conduct its business in a proper and courteous manner and to furnish prompt and efficient service, making available to the public clean, all late -model low mileage automobiles in good mechanical condition. The LESSEE agrees to charge fair, reasonable and non-discriminatory rates and charges for the rental of vehicles, however, the LESSEE may make reasonable and non-discriminatory discounts, rebates or other similar types of price reduction to volume customers. As a means of determining the adequacy of (8)• service and reasonableness of rates and charges, it is agreed that the business operations and practices and rates and charges of automobile rental agencies on other airports in the Southwestern section of the United States of comparable size (having a comparable number of passenger boardings annually) will be employed as a standard. I. BUSINESS SOLICITATIONS. All of LESSEE'S business operations and solicitations will be confined to the leased premises. LESSEE agrees to have employees of its own in attendance at the counter during all hours of scheduled airline operations. J. ADVERTISING. The LESSEE will erect no signs and will distribute no advertising matter on the AIRPORT without the prior written consent of the Director of Aviation. NO RATES will be advertised or displayed on any AIRPORT premises including exclusive lease space. K. UTILITIES. The LESSEE shall assume and pay for all costs or charges for metered utility services furnished LESSEE during the term hereof; provided that LESSEE shall have the right to connect to any storm and sanitary sewers and water and utility outlets, the cost of extension, installation and meters, where required, to be borne by the LESSEE. L. PAYMENT OF TAXES, FEES. The LESSEE shall pay all federal, state and local governments taxes license fees and occupation taxes levied on the business conducted on the leased premises, or on any of LESSEE'S property used in connection therewith. The LESSEE shall render for taxation purposes all automobiles and other property used in connection with the business on the AIRPORT, and that all such property shall have its situs and domicile in Lubbock, Lubbock County, Texas. Delinquency in payment of such obligations, at the option of the CITY shall be cause for termination of this lease. M. REGULATIONS. The LESSEE'S officers, agents, employees and servants will obey all rules and regulations which may be promulgated by the CITY or its authorized agents in (9) 3 charge of the AIRPORT, or by other lawful authority, to insure the safe and orderly conduct of operations and traffic on the AIRPORT. N. PROHIBITION OF SUBLEASES AND ASSIGNMENTS. The LESSEE will not, directly or indirectly assign, sublet, sell, hypothecate or otherwise transfer this lease or any portion to the leased premises, without the prior written consent of the CITY. O. REMOVAL OF TRASH. LESSEE shall provide and use covered metal receptacles of a type designated by the Director of Aviation for all garbage, trash and other refuse. Piling of boxes, cartons, barrels or other similar items, in an unsightly or unsafe manner, on or about the demised premises, is prohibited. As long as normal municipal services provide for the collection and disposal of waste, or of certain types of waste in the same general area of the AIRPORT, LESSEE may be served by these facilities pro- vided it abide by the regulations and ordinances applicable thereto. In the event such service is not available or is discontinued, 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 caused as a result of the operation of business at its sole expense. P. INDEMNIFICATION AND INSURANCE. 1. The CITY shall stand indemnified by the LESSEE as provided by this contract. The LESSEE shall be deemed to be an independent contractor and operator responsible to all parties for its respective acts or -omissions and that the CITY shall in no way be responsible thereof. In the use of the AIRPORT generally or the leased premises specifically in the exercise or enjoyment of the privileges granted by this contract, the LESSEE shall indemnify and save harmless the CITY from any and all losses that may proximately result to the CITY because of any negligence on the part of the LESSEE, its agents or employees or invitees and shall indemnify the CITY against any and all claims, demands, suits, judgements and losses whatsoever. 2. The LESSEE shall maintain at all times, at its sole expense, insurance with an insurance underwriter acceptable to the CITY and from one authorized to do business in the State of Texas, against claims of public liability and property (10) damage resulting from LESSEE'S business activities at the AIRPORT. The amount of insurance coverage shall be not less than FIFTY THOUSAND ($50, 000.00) DOLLAR; for property damage as a result of any one event; or less than ONE HUNDRED THOUSAND ($100, 000.00) DOLLARS for personal injury or death of any one person in any one event; or less than THREE HUNDRED THOUSAND ($300, 000.00) DOLLARS for personal injury or death of two or more persons in any one event. Certificates of insurance or other satisfactory evidence shall be filed with the Director of Aviation prior to entry upon the premises by the LESSEE. Each policy shall name the CITY as an additional insured as its interest may appear. Each policy shall also provide "It is agreed that insurer shall notify the Director of Aviation of the City of Lubbock, Texas, of any alteration, renewal, or cancellation of this policy and that this policy shall remain in full force and effect until ten (10) days after such notice is received by the Director of Aviation." The LESSEE shall provide workmen's compensation insurance to meet statutory requirements, if qualified. The workmen's compensation policy shall provide employer's liability insurance in the amount of ONE HUNDRED THOUSAND ($100, 000.00) DOLLARS. Q. WAGES. 1. The LESSEE shall pay, or require the payment of, the prevailing rate of wages for each craft or workman employed by it, or by persons or firms engaged by it, for any alteration of premises or installation, maintenance or repair of vehicles, fixtures, equipment and furnishings, used in its operations, as required by ordinances enacted pursuant to Article 5159a, V.A. C. S. , as amended or as may be amended. The ordinances and statute and amendments thereto, are incorporated herein by references for all purposes. R. CONDUCT AND APPEARANCE OF EMPLOYEES. Any employee in LESSEE'S operations that may be deemed to be discourteous or objectionable on reasonable grounds shall be removed from employment on the premises on demand by CITY. CITY likewise reserves the right to eject any objec- tionable person or persons, including LESSEE'S employees, from said premises, and upon the exercise of this authority through CITY'S agents or employees, LESSEE hereby waives any right and all claims for damage against CITY or any of its agents, officials or employees. S. LIENS PROHIBITED. The LESSEE shall not bind, or attempt to bind, CITY for payment of any money in connection with construction, repairing, alterations, additions or recon- struction work on the premises aid that it shall not permit any mechanic's, material- man's or contractor's liens to arise against the premises or improvements thereon or any equipment, machinery and fixtures therein belonging to the CITY, and LESSEE expressly agrees that it will keep and save the premises and the CITY harmless from all costs and damages resulting from any liens or lien of any character created or that may be asserted through any act or thing done by the LESSEE. In the event any mechanic's or other liens or orders for payment shall be filed against the premises or improvements thereon, or the CITY -owned property located therein, during the term hereof, 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 the CITY, at LESSEE'S sole cost and expense, any action, suit or proceeding which may be brought thereon or for the enforcement of such lien or order. Failure of the LESSEE to comply with any requirement of this section or paragraph shall be cause for immediate termination of this contract by the CITY. T. NON - DISCRIMINATION PRACTICES. LESSEE, its agents and employees will not discriminate against any person or class of persons by reason of age, 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 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 Assurances. LESSEE agrees to not discriminate against any employee or applicant for employment because of age, race, creed, color, or national origin. The LESSEE agrees to take affirmative action to insure that applicants are employed, and that employees are tested during employment without regard to their age, race, creed, color, or national origin. Such action shall include, but not be limited to employment, (12) upgrading, demotion, or transfer, recruitment, layoff, rates of pay or other forms of cgmpensation, and selection for training, including apprenticeship. ARTICLE SEVEN TERMINATION, CANCELLATION A. TERMINATION. This lease shall terminate at the end of the full term hereof and LESSEE shall have no further right or interest in any of the lands or improvements hereby demised, except as provided in Article Six. B. CANCELLATION BY LESSEE. This lease shall be subject to cancellation by LESSEE after the happening of one or more of the following events: 1. The permanent abandonment of the AIRPORT as an air terminal. 2. 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. 3. Issuance by any court of competent jurisdiction of an injunction in any way preventing or restraining the use and operation of the AIRPORT, and the remainin€ in force of such injunction for a period of at least ninety (90) days. 4. The default by the CITY in the performance of any covenant or agreement herein required to be performed 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 thirty (30) days written notice to the CITY at any time after the lapse of the applicable periods of time and this lease shall terminate as of that date. Rental due hereunder shall be payable only to the effective date of said termination. C. CITY'S OPTION TO CANCEL. The CITY may cancel this lease giving LESSEE thirty (30) days written notice, upon or after the happening of any one of the following events: 1. The filing of a voluntary petition in bankruptcy by LESSEE. 2. The institution of proceedings in bankruptcy against LESSEE, unless -such proceedings are vacated within sixty (60) days after initiation thereof. 3. The taking by the court of jurisdiction of LESSEE and its assets pursuant to proceedings brought under the provisions of any reorganization act, unless such proceedings are vacated within sixty (60) days after initiation thereof. 4. The appointment of a receiver of LESSEE'S assets, unless such proceedings are vacated within sixty (60) days after initiation thereof. 5. Any assignment of LESSEE'S assets for the benefit of creditors. 6. The taking of LESSEE'S leasehold interest by execution or other process of law. 7. The divestiture of LESSEE'S estate herein by other operation of law. 8. The default by LESSEE in the performance of any covenant or agreement herein contained and the failure of LESSEE to remedy such default within thirty (30) days after receipt from the CITY of written notice to remedy same. No waiver of default by the CITY of any of the obligations to be performed by LESSEE shall be construed to be or act as a waiver of any subsequent default. Acceptance of rental by the CITY -for any period or periods after default by LESSEE of any of LESSEE'S obligations hereunder shall not be deemed a waiver by the CITY of its right to cancel this lease for such default. ARTICLE EIGHT GENERAL A. TIME OF EMERGENCY. During time of war or national emergency, the CITY shall have the right to lease the landing area or any part thereof to the United States for government 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 Government, shall be suspended. B. SPONSOR'S ASSURANCE SUBORDINATION. This lease shall be subordinate to the provisions of any existing or future agreement between the CITY 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 such improvements, the CITY shall not be held liable therefor. C. REPLACEMENT AFTER DAMAGE. It is agreed between the parties hereto that, in the event said building is damaged by fire or other accidental cause during the term hereof so as to become totally or partially untenable, the CITY shall have the option to restore the premises to their former condition. The CITY shall give LESSEE notice in writing of the exercise of the option within thirty (30) days of occurance of such damage, if the CITY elects to exercise the option. If the option is exercised, the CITY shall proceed with due diligence to restore the premises; there shall be an abatement of the rent until repairs have been made for the time and to the extent for which premises, or part thereof, have been untenable. Should the. CITY not exercise the option, the lease of such portion of the leased premises shall cease and terminate effective with the date of damage by fire or other accidental cause. D. CONFLICT -OF INTEREST. - The LESSEE acknowledges that it is informed that Texas law prohibits contracts between the CITY and its "officers" and "employees, " and that the prohibition extends to an officer and employee 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 the officer or employee has an interest. LESSEE certifies (and this contract is made in reliance thereon) that neither it nor any person having an interest in this contract is an officer or employee of CITY or any of its agencies. E. LANDLORD'S LIEN. LESSEE hereby gives to the CITY a lien upon all of its property, now or at any time hereafter placed in or upon the said premises, to secure the prompt payment of the charges herein stipulated to be paid for the use of said premises, all exemptions of such property, or any of it, being hereby waived. F. RIGHT OF INSPECTION. The CITY reserves the right to conduct inspections, at reasonable times of the leased premises to `insure that fire, safety, and sanitiation regulations and other provisions contained in this lease are being adhered to by the LESSEE. G. TERMINATION OF LEASE, SURRENDER OF LEASED PREMISES AND OWNERSHIP OF IMPROVEMENTS A � C The LESSEE covenants and agrees that at the expiration of the lease term or at the earlier termination as provided in this lease agreement, it will quit and surrender the leased premises and the improvements in good state and condition, reasonable wear and tear, acts of God and other casualties excepted, and the CITY shall have the right to take possession of the leased premises and the improvements with or without process of law. H. HEADINGS. The paragraph headings contained herein are for convenience in reference and are not intended to define, extend or limit the scope of any provisions, of this agreement. I. NOTICES. Notices to the CITY required or appropriate under this contract shall be deemed sufficient if in writing and mailed, registered or certified mail, postage prepaid, addressed to the Director of Aviation, Lubbock Regional Airport, Route 3, .Box 389, Lubbock, Texas 79401. Notices to the LESSEE shall be deemed sufficient if in writing and mailed, registered or certified mail, postage prepaid, addressed to the LESSEE at the address on file with the Director of Aviation. J. ENTIRE AGREEMENT. This contract consititutes the entire agreement, and any other written or parole agreement with CITY being expressly waived by LESSEE. EXECUTED this day of '7,-1f� �,�% , 19-�;,-7. 2:0, * W6.1.81 I THE CITY OF LUBBOCK BY: /%�lr�r(�-/ Q o rC Die tor of Aviation LES!P � BY: Title j��,�s , �.� Date 3-4- 7 7 No Text • tJ N .—_ IDI j 5' 40' EXTENDED 1 1p o+ NI i • �t O M 75' -� _ 2 5' t J M i I - I Lo � I r ---- - I 5 , F _ 17 t 50' I I Oi_ 1%v%4; S1 5 7i:lr, F_ 1'1 'c.-It-' ' ' 108, ' 9i.4 ." 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