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HomeMy WebLinkAboutResolution - 778 - Lease Agreement - BNC - Building #T-201, East Ramp LIA - 04_09_1981AA:bs RESOLUTION #778 - 4/9/81 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 Non -Aeronautical Lease Agreement with Burlington Northern Corporation, 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 9th d _ATTEST; Evelyn 'Ca ga, City S c et -Treasurer APPROVED AS TO CONTENT: Mary n Coffee, Director o Aviation APPROVED AS TO FORM: Angela Adabqs, Assistant City Attorney RESOLUTION #778 - 4/9/81 STATE OF TEXAS mq,6 COUNTY OF LUBBOCK 4 KNOW ALL TEEN BY THESE PRESENTS: 1% iyyly-/1GRVly t1V 11VHL LZjiaz /i rRrl l' "G d �l THIS AGREEMENT, entered into at Lubbock, Texas, by and between the CITY OF LUBBOCK, hereinafter referred to as "LESSOR", and BURLINGTON NORTHERN COR- PORATION, duly incorporated under the laws of the State of Texas, hereinafter referred to as "LESSEE", Witnesseth: WHEREAS, LESSOR owns and operates a public airport designated as LUBBOCK INTERNATIONAL AIRPORT herein called "AIRPORT", and WHEREAS, the LESSEE desires to use building no. T-201 on the East Ramp of the Lubbock International Airport; and WHEREAS, the Lessee is primarily engaged in air freight operations; and WHEREAS, LESSOR reserves the right to take any action it considers nec- essary to protect the aerial approaches of the Airport against obstruction, together with the right to prevent LESSEE from erecting or permitting to be erected any building or other structure on the Airport which in the opinion of LESSOR would limit the usefulness of the Airport or constitute a hazard to aircraft; and WHEREAS, it is agreed by LESSEE that during the time of war or national emergency the LESSOR shall have the right to enter into an agreement with the United States Government for military or naval use of part or all of the landing area, the publicly awned air navigation facilities, and other area or facilities of the Airport. And if any such agreement is executed, the pro- visions of this instrument, insofar as they are inconsistent with the pro- visions of the agreement with the Government, shall be terminated, and WHEREAS, it is agreed that this agreement shall be subordinate to the provisions of any existing or future agreement between the 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; and WHEREAS, all rights, privileges and interests acquired herein by LESSEE at the option of the LESSOR, following written notice of thirty (30) days, may be suspended or finally terminated if such suspension or termination 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 and provisions of aeronautical operations thereon; and, WHEREAS, in the event the exercise of the rights reserved above by the CITY makes the operation of this lease impractical, the LESSEE upon thirty days notice to the LESSOR, shall have the right to cancel this lease; and 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 the premises hereinafter described and being: Building T-201 located on the East Ramp of the Lubbock International Air- port, a more specific location of which is shown on "Exhibit A" attached hereto and made a part hereof for all purposes. The original term of this agreement shall be for a period of five years, commencing on May 1, 1981. LESSEE shall have the option to extend this agree- ment for one five (5) year period. Such option must be exercised in writing ninety (90) days prior to the expiration date of the original term. If the LESSEE desires to exercise said option, the rental rate shall be in accordance with the calculations as set forth herein plus CPI Index Increases. Both parties hereby agree that the Lessee shall have the right to enter the leased premises upon execution of this Agreement for the purpose of effect- ing authorized improvements thereon. ARTICLE II In consideration of the rights and privileges herein granted, LESSEE shall pay LESSOR as follows: a. an annual building rental rate of $1.50 per square foot for 5,040 square feet. b. an annual rental rate of $.0624 per square foot for 12,360 square feet of surrounding land on which the building is situated. Further, the parties hereto agree that certain authorized capital im- provements shall be made to the leased premises by the Lessee. The Lessor will participate in said improvements to the extent of 50%, such participation not to exceed $12,000.00. Said participation in authorized improvements shall be rebated on the rent over the initial term of the lease. Rental rates set forth herein shall be paid to LESSOR by LESSEE monthly in advance by the tenth day of each month. The parties hereto mutually agree that the rental rates set forth above shall be adjusted upward or downward for each ensuing year beginning January 1, 1982 in direct proportion to the fluctuation of 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, 1981 shall be construed as the base period. ARTICLE III This lease is granted subject to the following provisions and conditions: 1. The lease herein granted is subject to any and all applicable laws, ordinances, rules and regulations pertaining to the Lubbock Airport. 2. Except as provided herein, the LESSEE shall not make, permit, or suffer any additions, improvement or alterations to the property without prior written consent of the LESSOR. Any such additions, improvements or alterations made with the consent of the LESSOR, except. for those provided herein in Article II, shall be solely at the expense of the LESSEE and unless such consent provides specifically that title to the addition or improvements so made shall vest in the LESSEE, title thereto shall at all times remain in the LESSOR and such additions or improvements shall be subject to all terms and conditions of this instrument. The LESSEE agrees to hold the LESSOR harmless from mechanic's and materialman's liens arising from any additions, improvements, repairs or alterations effected by the LESSEE. 3. The LESSOR, acting by and through the Director of Aviation, or other designated representative shall have the right to inspect the property at all reasonable times during the term of this lease. 4. The LESSEE agrees that it will at all times during the term of this lease maintain in good and serviceable condition all land, improvements, facilities and equipment included herein, ordinary wear and tear excepted, such maintenance to be the sole responsibility and obligation of the LESSEE. S. Except as provided herein, any property of the LESSOR, or for which the CITY may be responsible, which is damaged or destroyed incident to the exercise of the privileges herein granted shall be properly repaired or re- placed by the LESSEE to the satisfaction of the LESSOR and its authorized rep- resentatives, 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 suf- ficient by the LESSOR to compensate for the loss sustained by the LESSOR by reason of the loss of, damage to, or destruction of such property. 6. The LESSEE agrees to indemnify, defend and forever save the LESSOR, their authorized agents, representatives and employees, harmless from and against any and all penalties, liability, annoyances, or loss resulting from claims or court action of any nature arising directly or indirectly out of any acts or omissions of the LESSEE, his agents, servants, guests, employees or business visitors under this agreement. 7. The LESSEE shall maintain at all times, as its sole expense, in- surance with an insurance underwriter acceptable to the LESSOR and from one authorized to do business in the State of Texas, against claims of public liability and property damage resulting from LESSEE'S business activities at the Airport. The amount of insurance coverage shall be not less than FIFTY THOUSAND DOLLARS ($50,000) for property damage as a result of any one event, or less than ONE HUNDRED THOUSAND DOLLARS ($100,000) for personal injury or death of any one person in any one event; or less than THREE HUNDRED THOUSAND DOLLARS ($300,000) 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 City Secretary prior to entry upon the premises by the LESSEE. Each policy shall name the LESSOR, CITY OF LUBBOCK, as an additional insured as its interest may appear. Each policy shall provide "It is agreed that insurer shall notify 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. 8. LESSEE shall furnish to the LESSOR satisfactory evidence that it carries Workmen's Compensation Insurance in accordance with the laws of the State of Texas. 4. The LESSEE shall assume responsibility for the payment of all taxes and assessments and public utility charges becoming due on the property 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 or with respect to the property 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 non-payment of charges, LESSEE shall have the option to cancel this lease upon thirty days notice to the LESSOR. 10. Within 30 days following the date of expiration or termination of this agreement, the LESSEE shall as required by the LESSOR, vacate said premises, remove all property of the LESSEE and restore the land, improvements, facilities and equipment included herein to as good condition on such date of expiration or termination as when received, ordinary wear and tear excepted; provided, however, that the authorized improvements as provided for in Article II herein shall upon expiration or termination of this agreement vest in the Lessor and shall become the sole property of the Lessor for all reasons. Should the Lessee fail to remove any property, facilities or equipment to which he has a legal right within 30 days of said expiration or termination, then at the option of the LESSOR said property shall either become the property of the LESSOR without compensation therefore or the LESSOR may cause the property to be removed; the land, improvements, facilities and equipment included herein to be restored at tue expense of the LESSEE and no claim for damages against the LESSOR or its officers, agents, or employees shall be created or made on account of such removal and restoration. 11. The LESSEE, its agents and employees will not discriminate against any person or class of persons by reason of sex, 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 the Federal Aviation Regulations. The LESSEE further agrees to comply with such enforcement procedures as the United States might demand that the LESSOR take in order to comply with the Sponsor's Assurances (CITY). LESSEE agrees to not discriminate against any employee or applicant for employment because of race, creed, color, sex 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 race, creed, color, sex or national origin. Such action shall include, but not be limited to employment, upgrading, demotion, or transfer, recruitment, layoff, rates of pay or other forms of compensation, and selection for training, in- cluding apprenticeship. The LESSEE will conduct its activities and operate its facilities in accordance with the requirements of Section 504 of the Rehabilitation Act of 1973 and will assure that no qualified handicapped person shall, solely by reason of his or her handicap be excluded from participation in, be denied the benefits of, or otherwise be subjected to discrimination, including discrimination in employment, under any program or activity of the LESSEE. 12. The LESSEE warrants that it has not employed any person employed by the LESSOR to solicit or secure this Lease Agreement upon any agreement for a commission, percentage, brokerage, or contingent fee. 13. Except with prior written consent of the LESSOR the LESSEE shall not sublet any part of the premises or assign the license or any of its rights hereunder. 14. 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 term or conditions but the LESSEE'S obligation with respect to such future performance shall continue in full force and effect. 15. The obligation of the LESSEE to maintain the property to the satis- faction of the LESSOR or its representative and to restore the same to its present condition shall extend not only to the property hereinabove described but to the adjacent streets and roadways used for ingress and egress to said property, except for ordinary wear and tear occasioned by normal and customary uses. 16. 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 its business at its sole expense. 17. LESSEE agrees that the LESSOR shall have, and it hereby grants the LESSOR a lien on all LESSEE'S property of whatsoever nature placed in or upon the premises, to guarantee the payment of any and all arrearages. ARTICLE IV This agreement is subject to termination for the reasons set forth below, provided that 30 days written notice is given to the non -terminating party. The LESSEE may terminate upon the happening of any of the following: 1. The permanent abandonment of the Airport as an air terminal. 2. The issuance by any court of competent jurisdiction of an injunction in any way preventing or restraining the use of the Airport and the remaining in force of such injunction for at least thirty (30) days. 3. The breach by the LESSOR of any of the terms, covenants or conditions of this agreement to be kept, performed and observed by the LESSOR, and the failure of the LESSOR to remedy such breach for a period of sixty (60) days after written notice from the LESSEE of the existence of such breach. 4. The assumption by the United States Government, or any authorized agency of same, of the operation, control or use of the Airport and its fa- cilities in such a manner as to substantially restrict the LESSEE from operat- ing under the terms of this agreement, if such restriction is to continue or has continued for a period of three (3) months or more. The LESSOR may terminate upon the happening of any of the following: 1. If the LESSEE shall file a voluntary petition of bankruptcy; or, if the proceedings in bankruptcy shall be instituted against it and it is thereafter adjudicated a bankrupt pursuant to such proceedings; or if a court shall take jurisdiction of LESSEE and its assets pursuant to proceedings brought under the provisions of any federal reorganization act; or if a receiver for LESSEE'S assets is appointed; or if LESSEE shall be divested of its rights, powers and privileges under this agreement by other operation of law. 2. If the LESSEE shall abandon and discontinue operations under this agreement. 3. If the LESSEE shall default in or fail to make any payments at the time and in the amounts as required of it under this Agreement. 4. If the LESSEE shall fail to perform, keep and observe all of the covenants and conditions contained in this agreement to be performed, kept and observed by it. 5. If the LESSEE shall fail to abide by all applicable laws, ordinances and rules and regulations of the United States, State of Texas, City of Lubbock, or Director of Aviation of the City of Lubbock. CITY OF LU OCK, TEXAS BY: aZ BILL McALISTER, MAYOR ATTEST`.;..----_' "Evalyn G ffgi, City S c ary -Treasurer APPROVED AS TO CONTENT: Me�. yl' t at in Coffee, Di for of Aviation APPROVED AS TO FORM: Angela AdAs, Asst, City Attorney LESSEE: BURLINGTON NORTHERN CORPORATION BY: TITLE ATTEST: Secretary LUBBOCK INTERNATIONAL AIRPORT LU�80CK, TEXAS r awarw,ra 27