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HomeMy WebLinkAboutResolution - 3247 - Agreement G&G Aero Service Inc - Operating Space, LIA - 11_16_1989Resolution #3247 November 16, 1989 Item # 6 HW:dw 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 with G & G Aero Service, Inc., attached herewith, which shall be spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail. Passed by the City Council this 16th day of November , 1989 G C. l'cMIN , MAYOR ATTEST: Ranet e.Boyd, City Secretary l APPROVED AS TO CONTENT: Bern E. Case, Director of Aviation APPROVED AS TO FORM: ly 'Harold Wil ard, Assistant City Attorney HW:dw FIXED BASE OPERATOR AGREEMENT THIS LEASE AGREEMENT, made this 16th day of November 1989, by and between the City of Lubbock, Texas, acting by and through its Mayor, hereunto duly authorized, (hereinafter referred to as "LESSOR") and G & G 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 forth; 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 "Leased Premises"), and certain attendant privileges, uses and rights, as hereinafter specifically set forth. A. DESCRIPTION OF LEASED PREMISES Building T-302: Building Area 12,250 sq. ft. @ $.6461 per sq. ft. per year. Adjacent Land Area 24,784 sq. ft. @ $.0880 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. PURPOSES The purposes for which LESSEE may use the Leased 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 governmental 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. ARTICLE II A. The term of this Agreement shall commence on the 1st day of December, 1989, and end on the 30th day of November, 1992, subject, however, to earlier termination as hereinafter provided under Article VI. 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 in January 1990, in -2- 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 1989, 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. ARTICLE III RENTALS 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 (4f) 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 therefor. 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 (15) 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 (2%) per centum in computing charges as a maximum loss allowance from any and all causes. -3- B. Ground rental in the amount of TWO THOUSAND ONE HUNDRED EIGHT AND 99/100 DOLLARS ($2,180.99) per year for the land area of 24,784 square feet described in Article I, Paragraph A hereof as land adjacent to Building T-302, shown on Exhibit A hereto; which rental is computed at a rate of $.0880 per square foot per year; such ground rental shall be paid monthly in advance on the first (1st) day of each month at the rate of ONE HUNDRED EIGHTY- ONE AND 75/100 DOLLARS ($181.75) per month, which is a sum approximately equal to one -twelfth (1/12) of the annual ground rental due hereunder. C. Building rental in the amount of SEVEN THOUSAND NINE HUNDRED FOURTEEN AND 73/100 DOLLARS ($7,914.72) per year for Building T-302, which rental is computed at a rate of $.6461 per square foot per year; such building rental shall be payable in advance on the first (1st) day of each month at the rate of SIX HUNDRED FIFTY-NINE AND 56/100 DOLLARS ($659.56) per month, which is a sum approximately equal to one -twelfth (1/12) of said annual building rental due hereunder. D. TWO THOUSAND FIVE HUNDRED AND N0/100 DOLLARS ($2,500.00) is the established annual Fixed Base Operator's fee; however, other applicable ground and building rentals and fuel flowage fees may be 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 rentals effective with the execution of this Agreement are payable in advance on the first (1st) day of each month. Monthly payments for fuel flowage fees 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 payments for ground and building rentals and fuel flowage fees do not satisfy the minimum Fixed Base Operator's fee will pay a monthly pro rata amount of TWO HUNDRED EIGHT AND 34/100 DOLLARS ($208.34) payable in advance on the first (1st) day of each month. -4- OBLIGATIONS AND RIGHTS OF LESSEE A. ASSIGNMENT, TRANSFER, PLEDGE LESSEE shall not at any time assign, transfer, pledge or otherwise alienate this Agreement or any interest herein without the prior written consent of the Director of Aviation of LESSOR. B. SUBLEASING LESSEE shall not sublease all or any part of the Leased Premises hereunder without the specific written approval of the Director of Aviation 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 Leased Premises and any other taxes and 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 its operations at the Airport. D. NONDISCRIMINATION LESSEE, its successors in interest and assigns, as a part of the consideration hereof, does hereby covenant and agree "as a covenant running with the land" that in the event facilities are constructed, maintained or otherwise operated on the Leased Premises for a purpose for which a Department of Transportation program or activity is extended, or for another purpose involving the provision of similar services or benefits, LESSEE shall maintain and operate such facilities and services in compliance with all other requirements imposed pursuant to 49 CFR Part 21, Nondiscrimination in Federally Assisted Programs of the Department of Transportation, and as said Regulations may be amended. LESSEE, its successors in interest and assigns, as a part of the consideration hereof, does hereby further covenant and agree "as a covenant running with the land" that: (1) no person on the grounds of race, color, religion, sex or national origin shall be excluded from participation in, be denied the benefits of, or be -5- otherwise subjected to discrimination in the use of said facilities; (2) that in the construction of any improvements on, over or under such Leased Premises and the furnishing of services thereon, no person on the grounds of race, color, religion, sex or national origin shall be excluded from participation in, be denied the benefits of, or otherwise be subjected to discrimination; (3) the Leased Premises shall be used in compliance with all other requirements imposed by or pursuant to 49 CFR Part 21, Nondiscrimination in Federally Assisted Programs of the Department of Transportation, and as said Regulations may be amended. 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. E. PUBLIC BENEFIT LESSEE agrees to operate the Leased Premises for the use and benefit of the public and further agrees: 1. To furnish good, prompt and efficient services adequate to meet all the demands for its service at the Airport; 2. To furnish said services on a fair, equal and nondiscriminatory 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 discounts, rebates or other similar types of price reductions for 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. -6- G. DEVELOPMENT OF AIRPORT LESSEE agrees that LESSOR has the right to further develop or improve the Airport as LESSOR sees fit, regardless of the desires or views of the LESSEE, and without interference or hindrance therefrom. 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 such person, firm or corporation may choose to perform. I. OPERATION OF AIRCRAFT, COMPLIANCE WITH RULES AND REGULATIONS LESSEE agrees to operate and conduct its business, including but not limited to the operation of aircraft and the occupancy of said Leased Premises, at all times in compliance with applicable federal, state and local rules and regulations and in compliance with all applicable statutes, ordinances, rules and regulations affecting the use, occupancy or operation of the Leased Premises and Airport. LESSEE further agrees that in the event a civil penalty or fine is levied against the Airport as a result of LESSEE'S failure to comply or act in accordance with said rules, regulations, statutes and ordinances, LESSEE shall immediately reimburse the Airport the full amount of the penalty or fine and correct the failure, act, or omission leading to, causing or contributing to the violation. 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, naming LESSOR as an insured and insuring against all claims, losses, costs and expenses 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, -7- patrons or other persons, and growing out of the use of the said Leased Premises by LESSEE, such policies to provide for a liability limit on account of each accident resulting in bodily injury or death to one person of not less than ONE HUNDRED THOUSAND AND N0/100 DOLLARS ($100,000.00), a liability limit on account of each accident resulting in bodily injury or death to more than one person of not less than THREE HUNDRED THOUSAND AND N0/100 DOLLARS ($300,000.00), and a liability limit of not less than ONE HUNDRED THOUSAND AND N0/100 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 to the LESSOR of cancellation or any modification of such policies. Said policies shall also 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 at all times for the term of this Lease hazard and extended coverage insurance upon the building located on the Leased Premises to eighty percent (80%) of the full insurable value thereof. The value of said Building T-310 is hereby stipulated to be equal to one - hundred times one -twelfth of the annual rental for said building or 100 x $659.56 = $65,956.00. 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 operations at Lubbock International Airport; which books and records may be inspected at any time by LESSOR or its duly authorized representatives 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 -8- 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 LESSEE agrees that the Leased 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 Leased Premises for the purposes of inspecting the same. N. MAINTENANCE LESSEE shall, at its sole cost and expense, maintain the Leased Premises in a presentable condition consistent with good business practice. LESSEE shall repair all damages to said Leased Premises caused by its employees, patrons or its operations thereon; shall maintain and repair all equipment thereon, including any drainage installations, paving, curbs, islands, buildings and improvements; and shall repaint Building T-302 as necessary to maintain a clean and attractive appearance. 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. O. 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 produced as a result of LESSEE'S operations on the Leased Premises. -9- Q. ADVERTISING LESSEE may not erect or cause to be erected on the Leased Premises any billboards or advertising signs without the prior written consent of the Director of Aviation of 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 and resulting from LESSEE'S operations and/or use of the Leased Premises and common areas owned by LESSOR and used by the LESSEE, its agents, servants or employees, and from all loss and damages by reason of negligence of the LESSEE, its agents, servants or employees. S.USE OF AIRPORT During the term of this Lease, LESSEE and its tenants shall have free use of, in common with others at the Airport, 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 so as to substantially affect the use of the Leased Premises or the 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. WORKERS' COMPENSATION LESSEE shall furnish to LESSOR satisfactory evidence that it carries Workers' Compensation Insurance in accordance with the laws of the State of Texas. -10- U. IMPROVEMENTS LESSEE shall not make, permit or suffer any additions, improvements or alterations to the Leased Premises which constitute any major structural change or changes without first submitting plans and specifications for such additions, improvements or alterations 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 title to the additions 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 Agreement. The LESSEE agrees to hold LESSOR harmless from Mechanic's and Materialman'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 Except specifically authorized vehicles, LESSEE will not permit the driving of vehicles by its employees, customers, guests or invitees on the apron, taxiways, or runways. X. SECURITY LESSEE agrees to control all access to the air operations area (AOA) through the Leased Premises and through gates assigned to or controlled in whole or in part by LESSEE so as to prevent unauthorized entry to the (AOA) by persons, animals or vehicles. In the event that unauthorized access to the (AOA) is gained through the Leased Premises or any area which LESSEE controls or is obligated to control either by itself or jointly with other Airport lessees, any fines or penalties assessed by the Federal -11- Aviation Administration shall be the responsibility of the LESSEE and LESSEE hereby agrees to pay all such fines or penalties without delay and make any and all requested changes in its operations or facilities necessary to maintain Airport security and prevent reoccurrence of any unauthorized entry. 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 and improvements to LESSEE'S facilities. This will include structural design, color, materials used, landscaping and maintenance of LESSEE'S facilities and the Leased Premises. D. LESSOR reserves the right to issue through the Director of Aviation such rules, regulations and procedures for activities and operations conducted on the Airport as deemed necessary to protect and preserve the safety, security and welfare of the Airport and all persons, property and facilities located thereon. -12- TERMINATION A. TERMINATION BY LESSEE This Agreement shall be subject to cancellation by LESSEE, without liability to LESSOR in the event of the happening of any one or more of the following contingencies: 1. The permanent abandonment of the Airport as an air terminal. 2. The issuance by any court of competent jurisdiction of an injunction which in any way prevents or restrains the use of the Airport for at least thirty (30) days. 3. The breach by LESSOR of any of the terms, covenants or conditions of this Agreement to be kept, performed and observed by LESSOR, and the failure of 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 facilities in such a manner as to substantially restrict the LESSEE from conducting operations on the Leased Premises, for a period of three (3) months or more. B. TERMINATION BY LESSOR This Agreement shall be subject to cancellation by LESSOR in the event of the happening of any one or more of the following contingencies: 1. If the LESSEE makes an assignment for the benefit of creditors; or files a voluntary petition of bankruptcy; or if proceedings in bankruptcy shall be instituted against LESSEE and LESSEE is thereafter adjudicated as 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 petitions or applies to any tribunal for the appointment of a trustee or receiver for LESSEE -13- under any bankruptcy, reorganization arrangement, insolvency, readjustment of debt, dissolution or liquidation law of any jurisdiction, whether now or hereafter in effect. 2. If the LESSEE shall abandon and discontinue the conduct and operation of said Fixed Base Operations. 3. If the LESSEE shall default in or fail to make any payments at the time and in the amounts required of LESSEE 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 LESSEE. 5. If the LESSEE shall fail to abide by all applicable laws, ordinances, rules and regulations of the United States, State of Texas, City of Lubbock and Director of Aviation of the City of Lubbock. LESSOR shall give written notice to LESSEE to correct or cure any such default, failure to perform or breach and if, within thirty (30) days from the date of such notice, the default, failure to perform or breach complained of shall not have been corrected in a manner satisfactory to LESSOR, then and in such event LESSOR shall have the right, at once and without further notice to LESSEE, to declare this Agreement terminated and to enter upon and take full possession of the Leased Premises and, provided further, that upon the happening of any one of the contingencies enumerated in Article VI, Section B, numbered Paragraph 1 hereof, this Agreement shall be deemed to be breached by LESSEE and thereupon "ipso facto," and without entry or any other action by LESSOR, the Agreement shall terminate, and be reinstated only if such involuntary bankruptcy or insolvency proceedings, petition for reorganization, trusteeship, receivership or other legal act divesting LESSEE of its rights under this Agreement shall be denied, set aside, vacated or terminated in LESSEE'S favor within thirty (30) days from the happening of the contingency. Upon the happening of said latter events, this Agreement shall be reinstated as if there had been no breach occasioned by the happening of said contingencies, -14- provided that LESSEE shall, within ten (10) days after the final denial, vacating or setting aside of such petition or vacating, terminating or setting aside of such appointment, pay or discharge any and all sums of money which may have become due under this Agreement in the interim and remain unpaid, and shall likewise fully perform and discharge all other obligations which may have accrued and become payable in the interim. The acceptance of rentals and fees by LESSOR for any period or periods after a default of any of the terms, covenants or conditions herein contained and to be performed, kept or observed by LESSEE shall not be deemed a waiver of any rights on the part of LESSOR to cancel this Agreement for failure by LESSEE to so perform, keep or observe any of the terms, covenants or conditions hereof to be performed, kept or observed. No waiver by LESSOR or any of the terms of this Agreement to be kept, performed 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 on the Leased Premises such as buildings, equipment, goods, chattels and fixtures belonging to LESSEE and restore the Leased Premises 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 LESSEE 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, attorneys' fees and expenses that shall be incurred by LESSOR in enforcing the covenants and conditions of this Agreement. In the event the LESSEE fails to pay the expense to remove and store LESSEE'S property 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 -15- 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 Operations at any time prior to expiration, LESSOR shall retain 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 G & G Aero Service, Inc., P. O. Box 10728, Lubbock, Texas 79408, or such other addresses as may be designated by LESSOR or LESSEE in writing from time to time. IN WITNESS WHEREOF, the parties have executed this Agreement this 16th day of LESSOR: CITY OF LUBBOCK, TEXAS_ BY: . C. McMINN,'MAYOR T: Rane to Boyd, City Secre ary APPROVED AS TO: CONTENT: Bern Case, Director of Aviation APPROVED ASTO� FORM: Darold Willard, Assistant City Attorney November , 1989. LESSEE: G & G AERO SERVICE, INC. �r BY • /-��CSrc-/ �� ATTEST: -16-