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HomeMy WebLinkAboutResolution - 814 - Lease Agreement - American Airlines - 978Sq Ft Of Space, LIA Terminal Building - 05_28_1981AA: bs RESOLUTION NO. 814 - 5/28/81 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 Space Lease Terminal Agreement with American Airlines, 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 28th day of May ,1981. ATTEST: 4 — /7 74!4, 4C/ Evelyn DV, - i reta' Tresurer 0j � y rJ /1o�cc APPROVED AS TO CONTENT: Mar in W. Coffee, Dir t r of Aviation APPROVED AS TO FORM: Angela AdamsW Asst. City Attorney RESOLUTION NO. 814 - 5/28/81 STATE OF TEXAS KNOW ALL MEN BY THESE PRESENTS COUNTY OF LUBBOCK § SPACE LEASE TERMINAL AGREEMENT THIS LEASE AGREEMENT, made between the City of Lubbock, acting by and through its duly authorized City representative (hereinafter referred to as "Lessor") and American Airlines under the laws of the State of Texas (here- inafter referred to as the "Lessee"). WITNESSETH WHEREAS, Lessor owns and operates Lubbock International Airport, located in Lubbock County, State of Texas, (hereinafter referred to as "Airport"); and WHEREAS, Lessee desires to lease approximately 978 square feet of space in the Lubbock International Airport terminal building; and WHEREAS, Lessee is primarily engaged in air transportation as certified by the civil aeronautics board; and WHEREAS, Lessee has indicated a willingness and ability to properly keep, maintain and improve said space in accordance with standards established by Lessor; 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 right, 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; NOW THEREFORE, for and in consideration of the mutual covenants hereof, Lessor hereby leases to Lessee and Lessee hereby hires and takes from City certain exclusive premises (hereinafter called "Leased Premises"), and certain non-exclusive use facilities, rights and privileges in connection with and on the airport, as hereinafter described, upon the terms and conditions as follows: ARTICLE I Section 1.01 - Description of Exclutive Leased Premises The exclusive Leased Premises shall be comprised of 978 square feet, more or less, in the terminal building. The location of the Exclusive Leased Premises is designated on Exhibits A, B, & C attached hereto and by this reference made a part hereof. Section 1.02 - Description of Privileges, Uses and Rights Lessee shall have the right to place signs identifying Lessee's business on the terminal building. Said signs shall be of a type, size and design that will be subject to the written approval of Lessor prior to installation. Such installation will comply with all applicable City Codes and shall be without cost to the Lessor. Lessee shall conform and abide by and be responsible for present and future security measures in effect in Lessee's space including but not limited to the securing and locking of doors and other key control areas and equipment. ARTICLE II Section 2.01 - Installed Improvements and Property All improvements, equipment and other property bought, installed, erected and placed by Lessee in, on or about the Leased Premises shall be deemed to be personalty and remain the property of Lessee, except as may constitute fixtures attached to the building or premises, which if removed would damage or impair the use of such building or premises. Section 2.02 - Authorized Improvements Lessee may construct improvements on the leased premises only after the plans and specifications for such improvements have been presented to and approved in writing by the Department of Aviation of the City of Lubbock. All costs of construction for approved improvements shall be at the expense of the Lessee and shall be performed in accordance with the City of Lubbock's Building Code. Such improvements shall be considered fixtures attached to the premises and will remain the property of Lessor. Section 2.03 Inspection The Lessor, acting by and through the Director of Aviation, or other designated representative shall have the right to inspect the leased premises at all reasonable times during the term of this lease. ARTICLE III Obligation of City Section 3.01 - Right to Lease Property Lessor represents that it has the full right to lease that portion of the airport property referred to herein, together with all the premises, facilities, rights and privileges herein granted, and has full power and authority to enter into this lease in respect thereof. Section 3.02 - Maintenance and Services in Lessee's Exclusive Space Lessor shall be responsible for and shall perform exterior building main- tenance, structural maintenance, and installed equipment such as heating and air conditioning units and pay for all inspections as may be required by other agencies for Lessor owned buildings throughout the Leased Premises. ARTICLE IV Obligations of Lessee Section 4.01 - Maintenance of Leased Premises Except for exterior building, structural maintenance, and installed equipment by Lessor, as provided in Section 3.02, Lessee shall be obligated, without cost to Lessor, to maintain its exclusive Leased Premises and every part thereof including, but not limited to, installed equipment owned by Lessee. Lessee shall, at its own expense, provide janitorial services in the leased area. Lessee shall relamp light fixtures as necessary. Section 4.02 - Building Improvements Lessee agrees to make improvements to the building in accordance with the plans and directions given by the Director of Aviaiton and specifically set forth within the provisions of this lease agreement. Section 4.03 - Alterations, Additions or Replacements During the term of this Lease, Lessee shall make no alterations, additions or replacements in the Leased Premises without the prior written approval of the Lessor. Lessee shall likewise obtain prior approval from Lessor before installing, at its own expense, any additional equipment which requires new electrical or plumbing connections or changes in those already installed on the Leased Premises. Section 4.04 - Removal and Demolition Lessee shall not remove or demolish in whole or in part, any improvements that already exist on the Leased Premises without prior written consent of Lessor which may, at its discretion, condition such consent upon the obligation of Lessee to replace the same improvements specified in such consent upon termination of this lease. Lessor shall not withhold consent unreasonably and shall not impose unreasonable condition on its consent. Section 4.05 - Trash and Garbage Lessee shall provide at its own expense 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 its occupancy of Leased Premises. Section 4.06 - Taxes and Licenses Lessee shall pay all taxes of whatever character that may be lawfully levied or charged upon Lessee's Leasehold improvements and upon Lessee's rights to use the Leased Premises. Lessee shall obtain and pay for all licenses or permits necessary or required by law for the construction of any additional improvements, the installation of equipment and furnishings, and any other licenses necessary for the conduct of its business Lessor shall assist Lessee where necessary in obtaining said permits. Section 4.07 - Rules and Regulations In conducting its business, hereunder, Lessee shall comply with all applicable laws of the United States of America and the State of Texas; the rules and regulations promulgated by their authority with reference to aviation and air navigation, and all reasonable and applicable rules, regulations and ordinances of the City of Lubbock now in force or hereafter prescribed or promulgated by authority or by law. Provided that such rules and regulations of Lessor shall not be inconsistent with the terms of this agreement. Section 4.08 - Non -Discrimination The Lessee, its agents and employees will not discriminate against any person or class of persons by reason of age, 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 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. Lessee agrees to not discriminate against any employees or applicant for employment because of age, sex, race, color, creed 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, sex, race, color, creed 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, including apprenticeship. 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 other 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 Lessee. ARTICLE V Term Section 5.01 - Term The term of this Lease shall be for a period of one (1) year commencing on the 1st day of May, 1981, and ending on the 30th day of April, 1982. The Lessor hereby grants to the Lessee the option to extend this lease beyond the expiration date herein shown for a period of one (1) successive year. Lessee shall exercise such option period by giving the City at least thirty (30) days written notice of Lessee's intention to exercise the option. ARTICLE VI Section 6.01 - Rental for Exclusive Leased Premises in Terminal Building Rental for the Leased Premises in the terminal building as described in Section 1.01 shall be as follows: 1. Office space of 578 sq.ft., as shown on Exhibit A, at the rate of $12.90 per square foot per year, totalling $621.35 per month. 2. Storage space of 100 sq.ft., as shown on Exhibit B, at the rate of $10.32 per square foot per year, totalling $86.00 per month. 3. Storage space of 300 sq.ft, as shown on Exhibit C, at the .rate of $10.32 per square foot per year, totalling $258.00 per month. Rent as set forth above is payable in advance by the tenth of each month. Rental rate will be adjusted upward or downward for each ensuing year beginning January 1, 1982 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, 1981 shall be construed as the base period. ARTICLE VII General Conditions Section 7.01 - Default for Failure to Pay Rentals, Fees and Charges If Lessee fails to pay rentals, charges and fees due hereunder within thirty (30) days of the date such payment is due, Lessor may, at its option, upon fifteen (15) days written notice to Lessee (unless in such fifteen -day period Lessee shall have corrected such failure to pay) immediately or at any time thereafter, enter into and upon the Leased Premises, or any other part thereof in the name of the whole, and repossess said premises. Section 7.02 - Right to Recover Damages Lessee agrees that in the event the leased premises and adjoining premises are partially or completely destroyed or damaged as a result of an act or omission by Lessee, Lessor may, in its discretion, require Lessee to repair and reconstruct the Leased Premises and adjoining premises and pay the costs therefor. During any such period where Lessee repairs said Premises under the terms of this paragraph, the usual rental shall be payable. Section 7.03 - Assignment and Subletting Lessee shall not sell, assign or transfer this lease or any part thereof and shall not sublease all or any portion of the Leased Premises without the prior written consent of the Lessor. Section 7.04 - Hold Harmless Lessee agrees to indemnify, defend and forever save the Lubbock International Airport Board and 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 Lessee, his agents, representatives, servants, employees, or business visitors under this agreement. Section 7.05 - Insurance Lessee shall procure and keep in effect at all times during the term of the Lease, the forms of insurance set forth in this section and all policies and certificates shall contain a provision that written notice of cancellation or of any material change in said policy by the Insurer shall be delivered to the Lessor thirty (30) days in advance of the effective date thereof. All policies shall contain an agreement on the part of the respective insurers, waiving the right of such insurers to subrogation. Lessee shall maintain all insurance hereunder with insurance underwriters authorized to do business in the State of Texas satisfactory to Lessor. All policies shall name the City of Lubbock, its officers, servants, agents and employees as additional insureds. Lessee shall furnish the Lessor with cert- ificates from the insurance carrier showing all insurance required hereunder to be in full force and effect during the entire term of this Lease or shall deposit with Lessor certified copies of said policies. (A). Workman's Compensation Lessee shall provide workman's compensation insurance to meet statutory requirements, if qualified. The workman's compensation policy shall provide employee's liability insurance in the amount of One Hundred Thousand (100,000) Dollars. (B). Public Liability and Property Damage Lessee shall, at its sole expense, maintain insurance against claim 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 (50,000) Dollars for property damage as a result of any one event; or less than One Hundred Thousand (100,000) Dollars for personal injury or death of any one person in any one event; or less than Three Hundred Thousand (300,000) Dollars for personal injury or death of two or more persons in any one event. (C). Fire Insurance Lessee shall insure for fire and extended coverage risks all Lessees' improvements on Leased Premises. Such insurance shall be in an amount subject to reasonable deductible equal to the insurable replacement value of such improvements. All fire insurance policies shall contain loss payable endorsements in favor of the parties as their respective interests may appear hereunder. Lessor agrees that any payments received from such insuring companies by reason of loss under such policy or policies shall be applied toward repair or reconstruction of said Leasehold improvements. Section 7.06 - Rules and Regulations Lessor shall have the right to and shall adopt from time to time and enforce reasonable rules and regulations, which Lessee agrees to observe and obey, with respect to the use of the Airport, public terminal buildings and appurtenances; provided that such rules and regulations shall not be incon- sistent with safety and with rules, regulations and orders of the Federal Aviation Administration. Section 7.07 - Termination This lease shall terminate at the end of a full term hereof, and Lessee shall have no further right or interest in the Leased Premises. That on or before the date of expiration of this Lease or its relinquishment, the Lessee shall as required by City, vacate said premises, remove all property of the Lessee and restore the Leased Premises facilities and equipment included herein to as good condition on such date or expiration or relinquishment as when received, ordinary wear and tear excepted. If, however, this Lease is revoked the Lessee shall vacate the Premises, remove said property and restore the Leased Premises, improvements, facilities and equipment included herein as aforesaid within such times as Lessor may reasonably designate. In either event, if the Lessee shall fail or neglect to remove said property and so restore Leased Premises, improvements, facilities and equipment included herein, then at the option of Lessor said property shall either become the property of Lessor without compensation therefore or Lessor may cause the property to be removed and the Leased Premises, improvements, facilities and equipment included herein to be stored at the expense of the Lessee and no claim for damages against Lessor or its officers, agents, or employees shall be created or made on account of such removal and restoration. Section 7.09 - Notices Notices to Lessor provided for herein shall be sufficient if sent by certified mail, postage prepaid, addressed to: Director of Aviation, Route 3 Box 389, Lubbock, Texas 79401 and notices to Lessee, if sent by registered mail, postage prepaid, addressed to: American Airlines, P.O. Box 61616, Dallas -Ft. Worth, Texas 75261, Attn. Director of Properties or to such other addresses as the parties may designate to each other in writing from time to time. IN WITNESS WHEREOF, the Parties have hereunto set their hands this 28th day of May 19 81 . ATTEST: ZOFCK, TEXAEvelyn ffga, Secretary -Treasurer r, Mayor illleiS- APPRO� AS TO CONTENT: in W. Coffee, Dire or of Aviation APPROOVV�ED� AS TO FORM: Angela Adkms, Assistant City Attorney ATTEST: G"U, On' Lessee Amer#ean-ri nes Lubbock bAterna :tonal ' Exhibit A i r 1 r i • ap 'iAGM. N• ♦----'�---+.+♦. ` ' • �tost y � ���+r�urt n `� d 57 t • Q Sq. � ?"` �y q�;► l�a d. G ! fpl.nVj 'I r., .:._y n (G���O-��+n��.7 .'r �} � e.�j• � � I ra r.+.�t ...•�"ca 4,.�.cgaoQ,r«+ r..� . �1 IL '°"yia A K p/It }• ~ Lubbock International Air] �+I Exhibit B ? �d•1' , ���• • v • u'1a�dt—•��--- frMrs. __�__ v I , � I � 1 � � �M t.r--1 r r f'' � ♦ ' M ,ao 76--riT�3�- � 'fie y� 1 . Vy y rt'+••• r r,. ey u iav T=.. `+crwar r- ��`�'~ a • t �, ° � AAV_,_ 1 iw '4 I� i Wit•' � a' i� • -t'=A•' ".w'tr 0.0 •.1•b �y,A e—:Li..1t "Vi. i100 .•• M 4.6, _-.!r_i�,I. ^ seeder 5 - -O.K •y i ggrft. A' +~.ji r' •' (y'-•y"� y. ti' •o, •,�r t'�. %r `rig 3 Irk. WWWA6 Lubbock International Ai, or t + __ '4 OExhibit C v IV 9 IV rr 11 *'W 1 OVS16 00! I .,-. .,& % -0 IdO FW�,PAIIWW CAM �.r-40' 194i 300 sq. ft. %Vl 't 1wp-A (.WP t 1 tl r R4f vj-, . ft v I - gr;-�:T am 4. A