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HomeMy WebLinkAboutResolution - 1175 - Lease Agreement - Presidential Leasing Inc - Car Rental Space, LIA - 08_12_1982RESOLUTION 1175 - 8/12/82 JMS:da 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 Lease Agreement between the City of Lubbock and PRESIDENTIAL LEASING, INC., for space and the privilege of conducting a car rental business at the Lubbock International Airport, which Lease Agreement, attached herewith, 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 12th day of Au ust ,1982. z i BILL McALISTER, MAYOR ATTEST: E elyn G fga, City c -Treasurer APPROVED AS TO CONTENT: Mar in Coffee, Di or of Aviation APPROVED AS TO FORM: lkv- Jr- Sherwin, Assistant City Attorney RESOLUTION 1175 - 8/12/82 SFrP,ETARyJREASURER THE STATE OF TEXAS § KNOW.ALL MEN BY THESE PRESENTS: COUNTY OF LUBBOCK § LEASE AGREEMENT THIS AGREEMENT entered into by the City of Lubbock (referred to herein as CITY), a Home Rule Municipality of Lubbock County, Texas, and PRESIDENTIAL LEASING, INC., a Texas Corporation, d/b/a AVIS RENT A CAR (referred to herein as LESSEE) of Lubbock, Texas. f.lryl lc nn_T T WHEREAS, CITY owns, controls and operates the Lubbock Inter- national Airport (referred to as AIRPORT), situated at Route 3, Lubbock, Lubbock County, Texas, and possesses the power and auth- ority to grant certain rights and privileges with respect thereto, including those hereinafter set forth; and WHEREAS, automobile rental services at the AIRPORT are an integral part of the necessary accommodations for ground trans- portation provided for passengers arriving at and departing from the AIRPORT in the promotion and development of air commerce and air transportation; and WHEREAS, LESSEE desires to make said automobile rental services available at the AIRPORT and is qualified and has the capacity for performing said services and to equip said facilities for use in connection therewith and further desires to lease certain space, and to obtain certain rights and privileges with respect to the operation of a rent -a -car service at said airport, upon the terms and conditions hereinafter provided. NOW THEREFORE, for and in consideration of the mutual pro- mises, covenants, terms and conditions, both general and special, as hereinafter set forth, CITY hereby grants to LESSEE the rights and privileges hereinafter described; LESSEE agrees to assume the duties, responsibilities, and obligations as hereinafter set forth; and the parties hereto, for themselves, their successors and assigns, agree as follows: ARTICLE ONE LEASE OF DESCRIBED PREMISES CITY, upon mutual execution of this agreement, does lease and demise to LESSEE, the following premises located at the AIRPORT: A. TERMINAL - A description of this location is shown on "Exhibit A", which Exhibit is attached to this Lease Agreement and incorporated herein. B. GROUND A description of this location is shown on the "Exhibit B", which Exhibit is attached to this Lease Agreement and incorporated herein. C. CLOSE -IN VEHICLE PARKING AREA - A description of these locations are shown on "Exhibit C", which Exhibit is attached to this Lease Agreement and incorporated herein. ARTICLE TWO TERM The term of this lease shall be for five (5) years, beginning September 1, 1982 and terminating August 31,.1987. 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 with in terminal counter facilities at the AIRPORT shall be no more than four through December 31, 1986. 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 (10%) of LESSEE's annual gross revenue from its business operation from the AIRPORT or eight per cent (8%) of the previous year's annual gross revenue or one -twelfth -- e (1/12) of the minimum annual guaranteed revenue for the year in which such rental becomes due, as set forth hereafter, whichever of the three is the greater amount, but in no event will the annual payment ,be less than the minimum guaranteed revenue as set forth below: For the year commencing September 1, 1982, and ending August 31, 1983, SEVENTY-SEVEN THOUSAND SEVEN HUNDRED EIGHTY-TWO AND NO/100THS DOLLARS ($77,782.00); For the year commencing September 1, 1983, and ending August 31, 1984, EIGHTY-FIVE THOUSAND FIVE HUNDRED SEVENTY-ONE AND NO/100THS DOLLARS ($85,571.00); For the year commencing September 1, 1984, and ending August 31, 1985, NINETY-FOUR THOUSAND ONE HUNDRED SEVENTEEN AND NO/100THS DOLLARS ($94,117.00); For the year commencing September 1, 1985, and ending August 31, 1986, ONE HUNDRED THREE THOUSAND FIVE HUNDRED TWENTY-NINE AND NO/100THS DOLLARS ($103,529.00); For the year commencing September 1, 1986, and ending August 31, 1987, ONE HUNDRED THIRTEEN THOUSAND EIGHT HUNDRED SEVENTY- TWO AND NO/100 DOLLARS ($113,872.00). The rental is payable month by month at a rate of either ten per cent (10%) of the preceeding month's gross revenue or one - twelfth (1/12) of the minimum annual guaranteed revenue for the year in which such rental becomes due, whichever is the greater amount. An adjustment will be made at the end of each calendar year, to be paid by January 31 of each year during the term of this lease, in order to achieve the full annual payment. 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; (2) 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''iany charges made the customer for insurance deduc- tible waiver features. Payment received from customers covering the costs of damages to automobiles while rented or from emergency repairs made by the customers shall not be included in gross revenue. Revenue re- ceived from the sale of used cars as.provided in Article Six B(4) shall be excluded from Lessee's annual gross revenue in Article Four A M . 2. Ground lease (Service Facility): The LESSEE shall pay to the CITY rentals for a ground lease on an area to be used as a service facility and consisting of 19,980 square feet of exclu- sive lease area, as shown on Exhibit "B", at $.068 per sq. ft. per year; said rentals to be adjusted annually as hereinafter set forth. 3. Close -in vehicle parking area (Ready and Return Car Area): The LESSEE shall pay to the CITY FIVE ($5.00) DOLLARS per space per month in advance for its allocated parking spaces, as shown on Exhibit "C". 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 LESSEE shall be provided space for a counter area within the baggage claim area as shown on Exhibit "A." An annual fee of five hundred ($500.00) dollars will be paid to CITY for this counter space. Rent is payable in advance on or before the tenth (loth) day of each calendar year during the term of this lease. The pro rated portion of the current year's charge shall be paid with the payment for the first full calendar year of this lease. 5. The rental rate for the counter area, the close -in vehicle parking area and the ground lease will be adjusted upward or downward for each ensuing year beginning January 1, 1983, in direct proportion to the fluctuation in the U.S. Department of Labor, Bureau of Labor Statistics Consumer Price Index. For the purpose of.computing all adjustments,_the Bureau of Labor Cost of Living Index as of January 1, 1982, shall be construed as the base period. B. RECORDS The LESSEE, following accepted accounting practices and pro- cedures, will maintain true and accurate books, 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, 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 LESSEE'S financial officer and shall be accompanied 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 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 indepen- dent Certified Public Accountants satisfactory to the CITY. The i maintenance, 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. NET LEASE This lease shall be without cost to the CITY for the develop- ment, 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 privi- leges, 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 r 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 pre- mises over and across common or public roadways serving the AIR- PORT 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 improvements within the AIRPORT upon the leased premises as follows: cost of such audit shall be borne one-half by LESSEE and one-half by the CITY, unless results of the audit reveal a discrepancy of more than five per cent (5%) 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 (5%) in favor of the LESSEE, 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 speci- fied by the City Secretary -Treasurer. E. BREACH' 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 pre- mises and has good title, free and clear of all liens and encum- brances having priority over this lease; and that the CITY has full right and authority to lease the premises described in the contract. B. MAINTENANCE 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. 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 for (1) Terminal: Concession Counter (2) 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 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 compliance 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. 4. The right to sell used rental -cars with the following restrictions: (1) Only those cars used at the Lubbock International Airport may be sold there. (2) The sale of such vehicles on Airport premises shall be restricted to LESSEE's vehicle service area as shown in Exhibit "B". 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 alone or by LESSEE in conjunction with other tenants who are now or who may hereafter be a 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 AIR- PORT. The CITY shall be the sole judge of the quality of main- tenance 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 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 provision of this lease agree- ment, 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 ten (10) years. In the event that the LESSEE herein is not the successful bidder at the-end-o€--- -- the term of this lease, 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 remain the property of LESSEE. In the event LESSEE is not a successful bidder to continue operations at the termination of this lease, 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 designate an appraiser. The two appraisers designated by the parties shall_ choose a third appraiser. Each appraiser shall appraise the buildings for their 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 terminates 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 lease, whether such termination comes upon expiration -of the primary term or otherwise under any provision of .this lease, 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 condition 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 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 any 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 total dollar amount of the fixed rent and the 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 Car Rental Operators the parking spaces in the Ready and Return -Car Area of the -AIRPORT in propor- tion 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 parking spaces allo- cated 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 i.ts_vehicles on any of the curbs, or entrance roads of the terminal area. G. 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-dis- criminatory rates and charges for the rental of vehicles, how- ever, the. LESSEE may make reasonable and non-discriminatory discounts, rebates or other similar types of price reduction to volume customers. H. BUSINESS SOLICITATIONS All of LESSEE's business operations and solicitations will be confined to the leased premises. LESSEE agrees to have em- ployees of its own in attendance at the counter during all hours of scheduled airline operations. I. ADVERTISING The LESSEE will erect no signs and will distribute no ad- vertising matter in the AIRPORT without the prior written consent of the Director of Aviation. J. 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.. K. PAYMENT OF TAXES, FEES The LESSEE shall pay all federal, state and local govern- ments taxes, license fees and occupation taxes levied on the bus- iness 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 W connection with the business on the AIRPORT, and that .all such property shall have its situs and domicile in Lubbock, Lubbock County, Texas. . Taxation is subject to legal protest in accordance with the provisions of the taxing authority whose levy is questioned. Any protest is at the sole expense of LESSEE. Delinquency in payment of such obligations, after any protest has been settled, shall, at the option of the CITY, be cause for termination of this lease, - - - -- -- -- -- - L. 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 charge of the AIRPORT, or by other lawful authority, to insure the safe and orderly conduct of operations and traffic on the AIRPORT. M. 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. N. 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 provided it abides 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. O'i:; INDEMNIFICATION AND INSURANCE 1. The CITY shall stand indemnified by the LESSEE as pro- vided by this contract. The LESSEE shall be deemed to be an in- dependent contractor. and operator responsible to all parties for its respective acts or omissions and that the CITY shall in no way be responsible therefor. In the use of the AIRPORT generally or the leased premises specifically in the exercise or enjoyment of the privileges grantedby this contract, the LESSEE shall in- demnify and save harmless the CITY from any and all losses that may proximately result to the CITY because of any fault or negli- gence on the part of the LESSEE, its agents or employees or invitees and shall indemnify the CITY against any and all claims, demands, suits, judgments 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 damage resulting from LESSEE's business activities at the AIRPORT. The amount of insurance coverage shall be not less than ONE HUNDRED THOUSAND ($100,000.00) DOLLARS for property damage as a result of any one event; or less than THREE'HUNDRED THOUSAND ($300,000.00) DOLLARS for personal injury or death of any one person in any one event; or less than FIVE HUNDRED THOUSAND ($500,000.00) 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 altera- tion, 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 compen- sation policy shall provide employer's liability insurance in the amount of ONE HUNDRED THOUSAND ($100,000.00) DOLLARS. P. WAGES The LESSEE shall pay, or require the payment of, the pre- vailing 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 5154a, V.A.C.S., as amended or as may be amended. —fie ordinS.ace�--and -ttatute and amendments thereto, are incorporated herein by references for all purposes. Q. 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 objectionable 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. R. LIENS PROHIBITED The LESSEE shall not bind, or attempt to bind, CITY for pay- ment of any money in connection with construction, repairing, alterations, additions or reconstruction work on the premises and that it shall not permit any mechanic's, materialman's or con- tractor'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 enforce- ment 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. S . NON-DISCRIMINATION PRACTICES ----- --- ---- - - ` - — - LESSEE, its agents and employees will not discriminate a- gainst any person or class of persons by reason of age, race, color, creed, or sex or national origin in providing any services or in the use of any of its facilities provided for the public. The LESSEE further agrees to comply with such enforcement pro- cedures 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, 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 age, 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, including apprenticeship. ARTICLE SEVEN TERMINATION, CANCELLATION A. TERMINATION This lease shall terminate at the end -of -the full term here- of and LESSEE shall have no further right or interest in any of the lands or improvements hereby demised except as .provided y p .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 inany way preventing -or restraining the use and -oper- ation of the AIRPORT, and the remaining in force of such injunc- tion for a period of at least ninety (90) days. 4. The default by the.CITY in the performance of any cov- enant 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 advance written notice to the CITY at any time after the lapse of the applicable periods of*time and this lease shall terminate as of the thirtieth (30th) day. Rental due hereunder shall be payable only to the effective date of said termination. 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 sub- stantially 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 untenant- able, 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 abate- ment of the rent until repairs have been made for the time and to the extent for which premises, or part thereof, have been un- tenantable. 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 partner- ship, 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. RIGHT OF INSPECTION The CITY reserves the right to conduct inspections, at reasonable times of the leased premises to insure that fire, safety, and sanitation regulations and other provisions contained in this lease are being adhered to by the LESSEE. F. TERMINATION OF LEASE, SURRENDER OF LEASED PREMISES AND OWNERSHIP OF IMPROVEMENTS 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, subject to the limitations provided by Article Six D(1), (2) and (3) of the lease, with or without process of law. G. 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. H&. , 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. I. ENTIRE AGREEMENT This contract constitutes the entire agreement, and any other written or parol agreement with CITY being expressly waived by LESSEE. I - •0 EXECUTED this /c,�04 day of LESS ,/w'av BY: Title Date 192 ° THE CITY OF LUBBOCK ATTEST: City Secf etdry-Trriddt APPROVED AS TO CONTENT: in Co ee Director of A cation APPROVED AS TO FORM: ��LP an Sherwin n sistant City Attorney •Lq.. .�� .'�� 1. • � • �� % G ` \- % • .'.' � - O tea' ., � 'wF'tiG . 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