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HomeMy WebLinkAboutResolution - 1518 - Agreement & Addendum #1 - Horton Aero Service Inc - Operations Space, LIA - 11_10_1983RESOLUTION 1518 - 11/10/83 JMS:js 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 Fixed Base Operator Agreement between the City of Lubbock, Texas and Horton Aero Service, Inc., a Texas Corporation, and Addendum No. 1 to Fixed Base Operator Agreement, which Agreement and Addendum No. 1, attached herewith, which shall be spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part of this Reso- lution as if fully copied herein in detail. Passed by the City Council this 10th day of November , 1983. AHENRY, AYOR ATTEST: E elyn Ga ga, fffty c -Treasurer APPROVED AS TO CONTENT: Marvin Uotfee, D ctor of Aviation APPROVED AS TO FORM: Q­r'" -M - J", 7 n M. Sherwi-n-,-Assistant City Attorney RESOLUTION 1518 - 11/10/83 CITY S"CRET!.F,'YjFNEt`SURER FIXED BASE OPERATOR AGREEMENT THIS LEASE AGREEMENT, made this loth day of November 19 83, by and between the City of Lubbock, Texas, acting by and through its Mayor, hereunto duly authorized, (hereinafter referred to as "LESSOR") and Horton Aero Service, Inc., a corporation incorporated under the laws of the State of Texas, with its principal office at Lubbock, Texas, (hereinafter referred to as "LESSEE"). WITNESSETH WHEREAS, LESSOR owns and operates the Lubbock International Airport, located in Lubbock County, Texas (hereinafter referred to as "Airport"); and WHEREAS, LESSOR deems it advantageous to itself and to its operation of the Airport to lease unto LESSEE the premises described herein, together with certain privileges, rights, uses and interests therein, as hereinafter set out; and, WHEREAS,. LESSEE is a corporation primarily engaged in commercial aviation, retail sales and the general activities of fixed base operation and aircraft sales; and, WHEREAS, LESSEE proposes to lease on a net basis from LESSOR a certain building and adjacent ground area and to avail itself of certain privileges, rights and uses pertaining thereto; and, WHEREAS, LESSEE has indicated a willingness and ability to properly keep, maintain and improve said premises in accordance with standards established by LESSOR; NOW THEREFORE: ARTICLE I PREMISES AND PRIVILEGES For and in consideration of the terms, conditions and covenants of this Lease to be performed by LESSEE, all of which LESSEE accepts, LESSOR does hereby lease unto LESSEE certain property together with improvements thereon (hereinafter called ."Lease Premises"), and certain attendant privileges, uses and rights, as hereinafter specifically set out. A. DESCRIPTION OF LEASED PREMISES. Building T-310: Building Area 33,696 sq. ft. 0 $.375 per sq. ft. per year. Adjacent Land Area 50,096 sq. ft. @ $.071 per sq. ft. per year. The above described building and land are located at the Lubbock International Airport, Lubbock County, Texas, and are more specifically described on Exhibit A attached hereto and by this reference made a part hereof. B. PURPOSE. The purposes for which LESSEE may use the premises described in paragraph A above are as follows: 1. LESSEE may engage in the business of aeronautics, engine and aircraft repairs, modifications, sales and renting of aircraft, sales of aircraft engine parts and accessories, inspections, licensing, fabrication of aircraft components, flight instruction, storage of aircraft and equipment, airplane charter flights and local short flights and may operate at the Lubbock International Airport as a Fixed Base Operator. 2. LESSEE may give flying instructions, provide pilots for planes for others, and carry passengers and freight for hire, subject to all appropriate laws of the Federal Government, the State of Texas, the County of Lubbock, Texas, and the requirements of all duly authorized govern- mental agencies. 3. LESSEE shall have a nonexclusive right to sell aviation fuel, oil and other propellants or lubricants to the general public at said Airport. A. The term of this Agreement shall commence on the 1st day of June, 1983, and end on the 31st day of May, 1988, a term of five (5) years. B. The parties hereto mutually agree that during the term of this Lease Agreement, the rental rate will be adjusted upward or downward for each ensuing year beginning January 1, 19B4, 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 Statistics Consumer Price Index as of January 1, 1983, shall be construed as the base period. C. NATIONAL EMERGENCY. In the event the rights and privileges hereunder are suspended by reason of war or other national emergency, the term of this Lease shall be extended by the amount of the period of such suspension. noTT111r TTT RENTAL AND FEES In consideration of the rights and privileges herein granted, LESSEE shall pay to the LESSOR the following rentals and fees: A. A fuel flowage fee of four cent (4e) per gallon for each gallon of aviation fuel delivered to LESSEE or its agents at Lubbock International Airport, excluding that sold or delivered by LESSEE to a regularly certified airline under contract with LESSOR as a part of the pecuniary consideration herefor. LESSOR shall'be entitled to collect, and LESSEE agrees to pay, a'fuel flowage fee, as determined by LESSOR from time to time, for each gallon of aviation fuel delivered for LESSEE'S consumption on said airport excepting that portion which is specifically excluded, unless said flowage fees are paid by the supplier on behalf of LESSEE. The aforesaid flowage fees, if not paid by the supplier, shall be due on the first (1st) day of the month succeeding that in which the aircraft fuels and lubricants are received by LESSEE and shall be delinquent if unpaid before the fifteenth (15th) day of each month. It is understood and agreed that the total gallonage delivered to or purchased by LESSEE, other than gasoline delivered to regularly scheduled airlines operating under contract with LESSOR, may be reduced by an amount not to exceed two (21.) per centum in computing charges as a maximum loss allowance from any and all causes. B. Ground rental in the amount of THREE THOUSAND FIVE HUNDRED FIFTY-SIX AND 82/100 DOLLARS ($3,556.82) per year for gross land area of 50,096 square feet described in Article I, Paragraph A hereof as land adjacent to Building T-310, shown on Exhibit A hereto; which rental is computed at a rate of 7 1/10 cents ($.071) per square foot per year; such ground rental shall be paid monthly in advance on the first (1st) day of each month in a sum of $296.40 per month, which is a sum equal to one - twelfth (1/12) of the annual ground rental due hereunder. C. Building rental in the amount of TWELVE THOUSAND SIX HUNDRED THIRTY-SIX AND NO/100 DOLLARS ($12, 636.00) per year for Building T-310, which rental is computed at a rate of 37 1/2 ($.375) per square foot per year; such building rental shall be payable in advance on the first (1st) day of each month in a sum of $1,053.00 per month which is a sum equal to one -twelfth (1/12) of said annual building rental due hereunder. D. TWO THOUSAND FIVE HUNDRED AND NO/100iDOLLARS ($2,500.00) is the established annual Fixed Base Operator's fee; however, other applicable ground and building rentals and fuel flowage fees maybe applied to satisfy the requirements of the Fixed Base Operator fee. Amounts payable under this Agreement shall be paid as follows: Monthly payments for ground and building rents effective with the execution of this Agreement are payable in advance on the first (1st) day of each month. Monthly payments for fuel flowage fee effective with the execution of this Agreement are payable on the first (1st) day of the month succeeding that in which the aircraft fuels and lubricants are received by LESSEE. Operators whose payment on rents and fees do not satisfy the minimum operators fee will pay monthly pro rata amount of $208.34 payable in advance on the first (1st) day of each month. OBLIGATIONS AND RIGHTS OF LESSEE A. ASSIGNMENT, TRANSFER, PLEDGE LESSEE shall not at anytime assign, transfer, pledge or otherwise alienate this Agreement or any interest herein,, without the prior written consent of LESSOR. B. SUBLEASING LESSEE shall not sublease all or any part of the space leased hereunder without the specific written approval of LESSOR, such approval not to be unreasonably withheld. C. TAXES AND ASSESSMENTS LESSEE agrees to pay promptly when due all taxes and assessments levied on the premises and any other taxes or assessments in connection with its business which may be levied and will promptly pay when due all charges for water, electricity and any other utilities used in connection with the operation of said Fixed Base Operator. D. NONDISCRIMINATION LESSEE, his agents and employees will not discriminate against any person or class of persons by reason of race, color, sex, age, creed or national origin in providing any service or in the use of any of its facilities provided for the public, in any manner prohibited by Part 15 of the Federal Aviation Regulations. The LESSEE further agrees to comply with such enforcement procedures as the United States might demand that the LESSOR take in order to comply with the Sponsor's Assurances. LESSEE agrees to not discriminate against any employee or applicant for employment because of race, creed, color, sex, age or national origin. The LESSEE agrees to take affirmative action to insure that applicants are employed, and that employees are tested during employment without regard to their race, creed, color, sex, age 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 apprentice- ship. ARTICLE IV OBLIGATIONS AND RIGHTS OF LESSEE A. ASSIGNMENT, TRANSFER, PLEDGE LESSEE shall not at anytime assign, transfer, pledge or otherwise alienate this Agreement or any interest herein, without the prior written consent of LESSOR. B. SUBLEASING LESSEE shall not sublease all or any part of the space leased hereunder without the specific written approval of LESSOR, such approval not to be unreasonably withheld. C. TAXES AND ASSESSMENTS LESSEE agrees to pay promptly when due all taxes and assessments levied on the premises and any other taxes or assessments in connection with its business which may be levied and will promptly pay when due all charges for water, electricity and any other utilities used in connection with the operation of said Fixed Base Operator. D. NONDISCRIMINATION LESSEE, his agents and employees will not discriminate against any person or class of persons by reason of race, color, sex, age, creed or national origin in providing any service or in the use of any of its facilities provided for the public, in any manner prohibited by Part 15 of the Federal Aviation Regulations. The LESSEE further agrees to comply with such enforcement procedures as the United States might demand that the LESSOR take in order to comply with the Sponsor's Assurances. LESSEE agrees to not discriminate against any employee or applicant for employment because of race, creed, color, sex, age or national origin. The LESSEE agrees to take affirmative action to insure that applicants are employed, and that employees are tested during employment without regard to their race, creed, color, sex, age 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 apprentice- ship. LESSEE will conduct its activities and operate its facili- ties 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 hand- icap, 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. E. PUBLIC BENEFIT LESSEE agrees to operate the premises leased for the use and benefit of the public. 1. To furnish good, prompt, and efficient services adequate to meet all the demands for its service at the Airport. 2. To furnish said service on a fair, equal and nondis- criminatory basis to all users thereof, and 3. To charge fair, reasonable and nondiscriminatory prices for each unit of sale or service, provided that the LESSEE may be allowed to make reasonable nondiscriminatory dis- counts, rebates or other similar type of price reductions to volume purchases. F. NONEXCLUSIVE It is understood and agreed that nothing herein contained shall be construed to grant or authorize the granting of an exclusive right within the meaning of Section 308(a) of the Civil Aeronautics Act. G. DEVELOPMENT OF AIRPORT LESSEE agrees that LESSOR has the right to further develop or improve the Airport as it sees fit, regardless of the desires or views of the LESSEE, and without interference or hindrance. H. RIGHTS OF OTHERS It is clearly understood by the LESSEE that no right or privilege has been granted which would operate to prevent any person, firm or corporation operating aircraft on the airport from performing any services on its own aircraft with its own regular employees (including, but not limited to, maintenance and repair) that it may choose to perform. I. OPERATION OF AIRCRAFT, COMPLIANCE WITH RULES AND REGULATIONS LESSEE agrees that it will operate aircraft at all times in compliance with all applicable federal, state and local rules and regulations and complying with all applicable statutes, ordi- nances, rules and regulations affecting the use and operation of the hangar and airport. J. PUBLIC LIABILITY INSURANCE LESSEE will carry and maintain Public Liability Insurance in companies licensed to do business in the State of Texas for the protection of LESSOR and naming it as an insured insuring against all claims, losses, costs or expense arising out of injuries to persons whether or not employed by the LESSEE, damage to property whether resulting from acts or omissions, negligence or otherwise of the LESSEE or any of its agents, employees, patrons or other persons, and growing out of the use of the said airport premises by LESSEE, such policies to provide for a liability limit on account of each accident resulting in a bodily injury or death to one person of not less than ONE HUNDRED THOUSAND DOLLARS ($100,000.00), a liability limit on account of each accident resulting in a bodily injury or death to more than one person of not less than THREE HUNDRED THOUSAND DOLLARS ($300,000.00), and a liability limit of not less than ONE HUNDRED THOUSAND DOLLARS ($100,000.00) for each accident for property damage. LESSEE shall furnish evidence to LESSOR of continuance in force of said policies and said policies shall be so worded as to insure ten (10) days notice of cancellation or any modification of such policy to the LESSOR. Said policies shall be subject to the approval of LESSOR. K. HAZARD INSURANCE LESSEE -shall procure from a company authorized to do business in the State of Texas and keep in force hazard and extended coverage insurance upon the buildings located on the leased premises .to eighty percent (80A) of the full insurable value t-hereof. The value of said Building T-310 is hereby stipulated to be equal to one -hundredth times one -twelfth of the annual rental for said building or 100 x $1,053.00 = $105,300.00. LESSEE shall furnish LESSOR with evidence that such coverage has been procured and is being maintained. L. INSPECTION OF BOOKS AND RECORDS LESSEE shall maintain complete books and records of all transactions, sales and income resulting from its operation at Lubbock International Airport; which books and records may be inspected at anytime by LESSOR or its duly authorized represen- tatives at Lubbock, Texas, upon reasonable notice to LESSEE. In the event LESSEE requests such inspection to be performed outside the Lubbock area, such request may be honored at LESSOR'S discretion; however, any and all expenses incurred by so doing shall be reimbursed by the LESSEE. LESSEE agrees to furnish facts and figures necessary to determine the amount to be paid LESSOR together with a fiscal year end signed statement certified by a Certified Public Accountant that said figures are correct and properly stated. M. CONDITIONS OF PREMISES: INSPECTION LE-SSEE agrees thjLt the premises under LESSEE'S control will be kept clean and free of all debris and other waste matter. LESSOR shall have the right at all reasonable times to enter upon the premises for the purposes of inspecting the premises under LESSEE'S control. N. MAINTENANCE LESSEE shall, at its sole cost and expense, maintain the leased premises and the buildings, improvements and appurtenances thereto, in a presentable condition consistent with good business practice. LESSEE shall repair all damages to said premises caused by its employees, patrons or its operation hereon; shall maintain and repair all equipment thereon, including any drainage installations, paving,:curbs, islands, buildings and improve- ments; and shall repaint its own buildings as necessary. LESSOR shall be the sole judge of the quality of maintenance and upon written notice by LESSOR to LESSEE, LESSEE shall be required to perform whatever maintenance LESSOR deems necessary. If said maintenance is not undertaken by LESSEE within twenty (20) days after receipt of written notice, LESSOR shall have the right to enter upon the leased premises and perform the necessary maintenance, the cost of which shall be borne by LESSEE. 0. UTILITIES LESSEE shall have the right to connect to any and all storm and sanitary sewers and water and utility outlets including metering devices at its own cost and expense; and LESSEE shall pay for any and all service charges incurred therefor. P. TRASH, GARBAGE, REFUSE, ETC. 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. Q. LESSEE may not erect or cause to be erected on leased premises any billboards or advertising signs without the prior written consent of the LESSOR. R. INDEMNITY LESSEE agrees to hold the City free and harmless from loss from each and every claim, and demand of whatsoever nature made on behalf of or by any person or persons resulting from LESSEE'S operation and/or use of the leased premises and common areas owned by LESSOR and used by the LESSEE, its agents, servants and employees, and from all loss and damages by reason of negligence of the LESSEE, its agents, servants and employees. S. USE OF AIRPORT During the term of this Lease, LESSEE and its tenants shall have the free and nonexclusive use, in common with others at the Airport, of all runways, ramps, parking areas and any and all public facilities available at the Airport and the right of ingress to and egress from the above described premises which right shall extend to LESSEE'S customers, employees, guests, invitees, tenants and patrons. If during the term of this Agreement, the use of the Airport by LESSEE or its tenants is temporarily suspended, restricted, or interfered with for a period of ten (10) days or more for reasons beyond the practical control of the LESSOR in such manner to substantially affect the use of the hangar or operation of aircraft by LESSEE or its tenants, all fees during such period shall abate and the term of the Agreement shall, at the election of LESSEE, be extended for an equivalent period of time. T. WORKMEN'S COMPENSATION LESSEE shall furnish to LESSOR satisfactory evidence that it carries Workmen's Compensation Insurance in accordance with the laws of the State of Texas. U. IMPROVEMENTS LESSEE shall not make, permit, or suffer any additions, improvements or alterations to the property which constitute any major structural change or changes without first submitting plans and specifications for such additions, improvements or altera- tions to the Director of Aviation of the City of Lubbock and securing prior written consent of the Director of Aviation. Any such additions, improvements or alterations made with the consent of the Director of Aviation shall be solely at the expense of the LESSEE and, unless such consent provides specifically that t;tle to the addition or improvements so made shall vest in the LESSEE, title thereto shall at all times remain in LESSOR and such. additions or improvements shall be subject to all terms and conditions of this instrument. The LESSEE agrees to hold LESSOR harmless from Mechanic's and Materialmen's Liens arising from any construction, additions, improvements, repairs or alterations effected by the LESSEE. V. PARKING LESSEE shall at its sole cost and expense construct adequate and suitable pavement areas for use by its customers for parking of aircraft and automobile parking for its employees, patrons, guests and invitees. W. VEHICULAR MOVEMENT LESSEE will not permit the driving of vehicles by its employees, customers, guests or invitees on the apron, taxiways, or runways except specifically authorized vehicles. ARTICLE V OBLIGATIONS AND RIGHTS OF LESSOR A. SAFETY 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 or off the Airport, which, in the opinion of LESSOR, would limit the usefulness of the Airport or constitute a hazard to aircraft. B. MAINTENANCE OF PUBLIC AREA LESSOR reserves the right, but shall not be obligated to LESSEE, to maintain and keep in repair the landing area of the Airport and all publicly owned facilities of the Airport, together with the right to direct and control all activities of LESSEE in this regard. C. STANDARDS LESSOR reserves the right to establish standards for the construction, maintenance, alterations, repairs, additions or improvements of LESSEE'S facilities. This will include struc- tural design, color, materials used, landscaping and maintenance of LESSEE'S facilities and leased premises. ARTICLE VI TERMINATION A. TERMINATION BY LESSEE This Agreement shall be subject to cancellation by LESSEE in the event of the happening of any one or more of the following contingencies without liability to LESSOR: 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. LESSOR to cancel this Agreement for failure by LESSEE to so perform, keep or observe any of the terms, covenants or condi- tions hereof to be performed, kept and observed. No waiver by LESSOR or, any of the terms of this Agreement to be kept, per- formed and observed by the LESSEE shall be construed to be or act as a waiver by LESSOR of any subsequent default on the part of the LESSEE. C. OWNERSHIP Within ninety (90) days after expiration of this Agreement as herein provided, the LESSEE shall remove all improvements, constructed or placed thereon such as buildings, equipment, goods,chattels and fixtures belonging to it and to restore the premises then under occupancy to the condition in which they were received, reasonable wear and tear and damage by fire or the elements excepted. In the event of the failure on the part of LESSEE to immediately remove from the premises all property owned by it under the requirements set forth in this paragraph, LESSOR may effect such removal and store such property at LESSEE'S expense. LESSEE covenants and agrees to pay all reasonable costs, attorney's fees and expenses that shall be incurred by LESSOR in enforcing the covenants and conditions of this Agree- ment, in event the LESSEE fails to pay expenses within thirty (30) days, such property will be deemed abandoned and title will vest in LESSOR; however, this in no way relieves the LESSEE of the debt incurred. LESSEE shall pay a sum equal to the rentals stipulated herein prorated to the period of time that LESSEE'S property remains on the leased premises after the expiration of the term of this Agreement. In the event LESSOR terminates this Agreement for cause as contained herein or if LESSEE discontinues Fixed Base Operation at anytime prior to expiration, LESSOR retains ownership of LESSEE'S improvements to the extent of the rentals due for the then remaining term. D. This Lease 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. ARTICLE VII NOTICE Any required notice to LESSOR provided for herein shall be sufficient if sent by certified mail, postage prepaid, to the Director of Aviation, Route 3, Box 389, Lubbock, Texas, 79401, and any such notice to the LESSEE shall be sufficient if sent in the same manner addressed to Horton Aero Service, Inc., 915 Kent, Lubbock, Texas 79403. Or such other addresses as may be desig- nated by LESSOR or LESSEE in writing from time to time. IN WITNESS WHEREOF, the parties have executed this Agreement this loth day of November , 1983, by their duly authorized officers. LESSOR: LESSEE: CITY/OF LU OCK, TEX HORTON AERO SERVICE, INC. BY: v BY: ALA HENRY EARL H RTON, JR. MAYOR PRESIDENT ATTEST: ATTEST: Evelyn Ga fg Secretary City Secretary-Treas r r APPROVED AS TO CONTENT: Marvin Coffee Director of A ation APPROVED ASTO FORM: QOu1i -)11 Joan M. Sherwin Assistant City Attorney F Lubbock International Airport East Airport District too 0 100 200 1'-100, scale feet EXHIBIT "A" - g3 ADDENDUM NO. 1 TO FIXED BASE OPERATOR AGREEMENT BETWEEN THE CITY OF LUBBOCK, TEXAS, AND.HORTON AERO SERVICE, INC. The City of Lubbock, Texas, and Horton Aero Service, Inc. enter into this Supplementary Agreement which constitutes Addendum No. 1 to the Fixed Base Operator Agreement by and between the City of Lubbock, Texas and Horton Aero Service, Inc. WHEREAS, the Airport Board of the City of Lubbock, Texas, has recommended to the City Council of the City of Lubbock, Texas, the granting of a Fixed Base Operator Agreement to Horton Aero Service, Inc; and WHEREAS, said Fixed Base Operator Agreement leases to Horton Aero Service, Inc., Building T-310 and 50,096 square feet of land area adjacent to said building for a term of five (5) years commencing on June 1, 1985 and expiring on May 31, 1988; and WHEREAS, said Airport Board subsequently recommended to said City Council that this Addendum No. 1 be added to said Fixed Base Operator Agreement granting to Horton Aero Service, Inc., the Lessee under said Fixed Base Operator Agreement, an additional 1,620 square feet of land to be used for an underground fuel storage tank; NOW THEREFORE, the City of Lubbock, Texas, hereinafter called "Lessor," and Horton Aero Service, Inc., hereinafter called "Lessee," do hereby agree as follows: ARTICLE I. The Fixed Base Operator Agreement by and between the City of Lubbock, Texas, and Horton Aero Service, Inc., executed on November 10, 1983 and attached hereto, is incor- porated into this Addendum No. 1 by this reference and made a part hereof for every purpose so that the terms and conditions set forth in said Fixed Base Operator Agreement do apply and govern this supplementary agreement by and between Lessor and Lessee. ARTICLE II. Lessor does hereby demise and lease unto Lessee, and Lessee does hereby take and hire from Lessor 1,620 square feet of land, more or less, the dimensions of which tract of land are approx- imately 36 feet by 45 feet and which tract of land is situated approximately 75 feet North and ten feet West of Building T-310 and adjacent to the East ramp of the Lubbock International Airport, Lubbock County, Texas, which 1,620 square feet of land is more particularly described on Exhibit "B" attached hereto and made a part hereof by this reference. ARTICLE III. Lessee shall use said 1,620 square feet of land as the site of an underground fuel storage tank. ARTICLE IV. A. In consideration of the rights and privileges herein granted, Lessee agrees to pay to Lessor a ground rental for the use of said 1,620 square feet of land in the amount of 7.1 cents per square foot per year ($0.071) or ONE HUNDRED FIFTEEN AND 2/100 DOLLARS ($115.02) per year, payable in advance on the first (1st) day of each month in a sum of $9.59 per month, which sum is equal to one -twelfth (1/12) of said annual ground until due hereunder. B. The Lessor and Lessee do mutually agree that during the term of this Supplementary Agreement, said ground rental rate will be adjusted upward or downward for each ensuing year beginning January 1, 1984, in the manner provided in Article II, B of said Fixed Base Operator Agreement. ARTICLE V. The term of this Supplementary Agreement will run concurrent with the term of said Fixed Base Operator Agreement. IN WITNESS WHEREOF, the parties acting by and through their duly authorized officers, have executed this Addendum No. 1 to Fixed Base Operator Agreement between the City of Lubbock, Texas, and Horton Aero Service,.Inc., on this IOth day of November , 1983. LESSOR: CITYOF LUBB K, TEXAS BY: // LAN H , MAY ATTEST: /% L1Ly �ecreLary-treasurer APPROVED AS TO CONTENT: MaCoffee Director of Aviation ROVED AS TOJ ORM: `j ,loan Sherwin Assistant City Attorney LESSEE: HORTON AERO SERVICE, INC. BY: �2 'U EARL HORTON, JR., PRESIDENT ATTEST: Secretary {' 4 Lubbock International Airport East Airport District E a I I I I I L Fence r-- i -- — - —1 T— 310 I I I I ® ' 1 � T-327 T-328 1 � 100 0 100 200 r=1oo scale feet EXHIBIT «B"