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HomeMy WebLinkAboutResolution - 1262 - Lease Agreement - TIA - Fuel Storage Tank Farm, LIA - 11_11_1982RESOLUTION 1262 - 11/11/82 U JMS:mck RESOLUTION WHEREAS, Texas International Airlines, Inc., has requested a lease for land at the Lubbock International Airport for use as an underground fuel storage facility; and WHEREAS the Airport Board of the Lubbock International Airport has con- sidered said request and recommends this land lease to the City Council of the City of Lubbock for their consideration; and WHEREAS, the City Council finds that the granting of this land lease to Texas International Airlines, Inc., will serve the public interest; NOW THERE- FORE: 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 with Texas International Airlines, Inc., for land to be used as a fuel storage facility at the Lubbock International Airport, a copy of which lease, attached herewith shall be spread upon the minutes of the City 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 llth da N m r 1982. BILL McALISTER, MAYOR ATTEST: E elyn Ga fga, City Secr t r -Treasurer APPROVED AS TO CONTENT: :26� C2)14/__e - Ma in Coffee, gVector of Aviation APPROVED AS TO FORM: q e &n jk4c�, /an Sherwin, Assistant City Attorney I i•�� STATE OF TEXAS § COUNTY OF LUBBOCK § RESOLUTION 1262 11/11/82 c CITY SECRETARY TREASURER KNOW ALL MEN BY THESE PRESENTS: NON -AERONAUTICAL LEASE AGREEMENT THIS AGREEMENT, entered into at Lubbock, Texas, by and between the CITY OF LUBBOCK, hereinafter referred to as "LESSOR", and TEXAS INTERNATIONAL AIRLINES, INCORPORATED, a Texas Corporation, 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 the following described tracts of land for the purpose of operating, maintaining and using an underground fuel storage tank farm and has requested a lease to use said property for such purposes; 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: A tract of land located on the Lubbock International Airport, Lubbock County, Texas, which tract is shown and more specifically described on Exhibit "A" attached hereto and made a part hereof by this reference. The original term of this agreement shall be for a period of 5 years, commencing upon June 1, 1982 and ending May 31, 1987. LESSEE shall have the option to extend this agreement for one five (5) year period. Such option must be exercised in writing at least ninety (90) days prior to 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. ARTICLE II In consideration of the rights and privileges herein granted, LESSEE shall pay to the LESSOR a ground rental of SIX HUNDRED DOLLARS ($600.00) per year, commencing on June 1, 1982; LESSEE shall pay to LESSOR the rents set forth herein in monthly payments in advance by the tenth day of each month, throughout the term of this Lease, such payments being FIFTY DOLLARS ($50.00) per 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, 1983 in direct proportion to the fluctuation of the U.S. Department of Labor, Bureau of Labor Statistics Consumer Price Index. For the purpose of computing all adjustments, the Bureau of Labor Consumer Price Index as of January 1, 1982 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 International Airport. 2. LESSOR reserves the right to take any action it considers necessary 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. 3. 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 owned air navigation facilities, and other area or facilities of the Airport. And if any such agreement is executed, the provisions of this instrument, insofar as they are inconsistent with the provisions of the agreement with the Govern- ment, shall be suspended. 4. 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. 5. 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 if such suspension 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. 6. The LESSEE agrees that this Lease is granted for the purpose of providing aircraft fuel storage and fueling facilities for the use of the LESSEE or it's agent in the fueling of LESSEE'S aircraft as an essential part of LESSEE'S operation of a scheduled airline. Nothing herein contained shall be construed as granting the LESSEE the right to engage in a separate fueling business for others. 7. The LESSEE shall not make, permit, or suffer any subsequent additions, improvements 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 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. It is hereby acknowledged that title to the equipment and structures currently located on the property as of this date is vested in, and shall remain vested in, LESSEE, and said buildings may be removed by the LESSEE at the expiration or termination of this lease agreement; provided, however, that LESSEE is not in arrears in any rental or utility payments to the LESSOR, and provided further, that the LESSEE shall restore the premises to the same condition existing at the commencement of this lease, normal wear and tear and damage by the elements excepted. 8. 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. 9. The LESSEE agrees that it will at all times during the term of this i 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. 10. Except as provided herein, any property of the LESSOR, or for which the CITY OF LUBBOCK may be responsible, which is damaged or destroyed incident to the exercise of the privileges herein granted shall be properly repaired or replaced by the LESSEE to the satisfaction of the LESSOR and its authorized representatives, 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 sufficient 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. 11. The LESSEE agrees to indemnify, defend and forever save the LESSOR, its 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, its agents, servants, guests, employees or business visitors under this agreement. 12. The LESSEE shall maintain at all times, at 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 ONE HUNDRED THOUSAND DOLLARS ($100,000) 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,!ICITY 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. 13. LESSEE shall furnish to lthe LESSOR satisfactory evidence that it carries Workmen's Compensation Insurance in accordance with the laws of the State of Texas. 14. The LESSEE shall assume iresponsibility for the payment of all taxes and assessments and public utility'1charges 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 waiter, lights, heat, power, sewage disposal, and any other services or utilitie's 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. 15. 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. If the LESSEE shall fail or neglect to remove said property and so restore the land, improvements, facilities and equipment included herein, 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 therefor or the LESSOR may cause the property to be removed, the land, improvements, facilities and equipment included herein to be restored at the 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. 16. 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 pro- vided for the public, in any manner prohibited by the Federal Aviation Regu- lations. 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 given by the CITY OF LUBBOCK. 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, 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. 17. 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. 18. Except with prior written consent of the LESSOR the LESSEE shall not sublet any part of the premises or assign this lease or any of its rights hereunder. 19. 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. 20. 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. 21. 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. 22. 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. LESSEE agrees to execute a Uniform Commercial Code financing statement form approved by the Secretary of State of Texas and describing LESSEE'S property subject to LESSOR'S lien herein granted. 23. In the event LESSEE remains in possession of the Leased Premises after the expiration of this Lease Agreement without any written renewal or extension of this Lease, such holding over shall not be deemed as a renewal or extension of this Lease, but shall create only a tenancy from day to day which may be terminated at any time by LESSOR. 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. A. 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. 6. If LESSOR, acting in good faith, finds termination of the rights, privileges and interests of LESSEE acquired under this Lease to be necessary to secure Federal Financial aid for the development of the Airport, or further development and provisions of aeronautical operations thereon. ARTICLE V 1. Notices to the LESSOR required or appropriate under this lease shall be deemed sufficient if in writing and mailed by registered mail with postage prepaid to the Director of Aviation, Lubbock International Airport, Route 3, Box 201, Lubbock, Texas 79401. Notices to the LESSEE required or appropriate under this lease shall be deemed sufficient ff in writing and mailed by registered mail with postage prepaid to TEXAS II NTERNATIONAL AIRLINES, INCORPORATED, P.O. Box 12788, Houston, Texas, 77017. 2. LESSEE'S registered agent for service of legal process in the State of Texas is C. T. Corporation System. Such registered agent may be served at LESSEE'S registered office at 811 Dallas Avenue, Houston, Texas, 77002. 3. Should LESSOR institute legal action to collect rentals due under this lease agreement or damages for breach of any covenant made herein, a reasonable sum shall be added to the amount of recovery for attorney's fees together with all costs of court. 4. Both parties hereby agree that this instrument constitutes the final agreement of the parties and that all other previous agreements, leases, and contracts between the parties which pertain to the property described herein are hereby declared null and void. CITY OF LYB OC ERAS BY: BILL McALISTER, MAYOR AT EST: Iftelyn Ga fga, City e e y-Treasurer APPROVED AS TOO CONTENT: �QniUTi[.0 Marvin Coffee, ector of Aviation APPROVED AS TO/IFORM: 9041, VSherwin, Assistant City Attorney LESSEE: INTERNATIONAL AIRLINES, INC. BY: 14, r 14' may.-. TITLE: GAM E ASHMORE Properues & Fuelgmt. ATTEST: Secret y LUBBOCK MUNICIPAL AIRPORT ROUTE 3 IUaBOCK, 1EXAS Q ` TRACT LEASE) TC Texas International IN " 100' kale EoLHIUI1 ^A„ 10 ACCOMPANY Texas International A.L. FUEL STORAGE LEASE