HomeMy WebLinkAboutResolution - 1176 - Lease Agreement - National Inc - Car Rental Space, LIA - 08_12_1982y
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RESOLUTION 1176 - 8/12/82
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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 NATIONAL CAR RENTAL SYSTEM, INC., for space
and the privilege of conducting a car rental business at the Lubbock Inter-
national 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 August ,1982.
r �
ILL McALI T R, MAYOR
ATTEST:
E elyn Ga fga, City ezle y-Treasurer
APPROVED AS TO CONTENT:
26,t� -7,e-,l
Marvin Coffee, DirectV P Aviation
APPROVED AS TO FORM:
11"41 A . JkU�
7 M. Sherwin, Assistant City Attorney
RESOLUTION 1176 - 8/12/82 ..
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 NATIONAL CAR RENTAL SYSTEM, INC., a Nevada Corporation,
J (referred to herein as LESSEE) of 7700 France Avenue South,
Minneapolis, Minnesota 55435.
WITNESSETH
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:
e
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 All, 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.
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`/0) 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
(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, FORTY THOUSAND EIGHT AND NO/100THS DOLLARS ($40,008.00);
For the year commencing September 1, 1983, and ending August
31, 1984, FIFTY THOUSAND FOUR AND NO/100THS DOLLARS ($50,004.00);
For the year commencing September 1, 1984, and ending August
31, 1985, FIFTY THOUSAND FOUR AND NO/100THS DOLLARS ($50,004.00);
For the year commencing September 1, 1985, and ending August
31, 1986, FIFTY-FIVE THOUSAND EIGHT AND NO/100THS DOLLARS
($55,008.00);
For the year commending September 1, 1-986, and ending August
31, 1987, SIXTY-FIVE THOUSAND FOUR AND NO/100THS DOLLARS
($65,004.00).
The rental is payable month by month at a rate of either ten
per cent (10%) of the proceeding 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 any 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(1).
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 20,000 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
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
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
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 furnishersof 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:
(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 shay 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 of
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 ttao 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 its 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
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.
0. 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 granted by 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 -
veiling 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 byreferencesfor 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 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 sgkbstantial 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 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 exercisesuchright 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'cri issions, 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.
EXECUTED this day of — .u�� 19�
LESSEE CITY OF LUBBOCK
NATIONAL CAR RENTAL SYSTEM, INC.
BY: Uwyvu'IAIam"
Rajiv TandoiH, Corporate Vice R
President & General Manager
Title Car Rental Division
ATTEST:
Date August 13, 1982 �-
City Secretary-Treas r
APPROVED AS TO CONTENT:
Marvin Coffee
Director of Aviation
APPROVED AS TO FORM:
Vo n anerwin
sistant City Attorney
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