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HomeMy WebLinkAboutResolution - 6423 - Addendum To Agreement - Southwest Airlines Company - 07/27/1999Resolution No. 6423 July 27, 1999 Item No. 4 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 Addendum No. 4 to an Airline Lease Agreement, by and between the City of Lubbock and Southwest Airlines Company. Said Agreement is attached hereto and incorporated in this Resolution as if fully set forth herein and shall be included in the minutes of the Council. Passed by the City Council this 27th day of July , 1999. r APPROVED AS TO CONTENT: 11-� ;74 irjctor of Aviation APPROVED AS TO FORM: ALSIgs:Southwest Airlines Lease Agreemcares ccdocs/June 15, 1999 Resolutin No. 6423 July 27, 1999 ADDENDUM NO.4 Item No. 4 TO AIRLINE LEASE AGREEMENT BY AND BETWEEN THE CITY OF LUBBOCK AND SOUTHWEST AIRLINES CO. WHEREAS, the City of Lubbock, Texas, a Texas home -rule municipal corporation (hereinafter called "City"), and Southwest Airlines Co. (hereinafter called "Lessee"), executed an Agreement (hereinafter called the "Agreement") on or about June 22, 1989 in which Lessee agreed to lease from the City space and facilities in the terminal building at Lubbock International Airport (hereinafter called the "Airport") sufficient to conduct its business or air transportation at said Airport; and WIIEREAS, the Agreement has been amended pursuant to Addendum No. 1 on March 25, 1993, Addendum No. 2 on March 25, 1993, and Addendum No. 3 on December 8, 1994; and WHEREAS, both the City and Lessee desire to amend the Agreement to increase the amount of space leased under the Agreement; NOW THEREFORE, the Agreement is hereby amended to read as follows: 1. Paragraph "A" of Section 2.01 of the Agreement is hereby amended to read as follows: Section 2.01 - Description of Exclusive Leased Premises A The exclusive leased premises shall consist of 8,545 square feet, more or less, in the terminal building of the Airport. 2. Section 7.01 of the Agreement is hereby amended to reads as follows: Section 7.01 - Rental for Exclusive Terminal Building Space Rental for the 8,545 square feet of exclusive leased space within the terminal building of the Airport, as described in Section 2.01, shall consist of a fixed fee of $5.63 per sq. ft. per year (to cover debt service) and a variable sum for Maintenance nad Operation (M & O) costs. The M & O portion of the rental shall be subject to adjustments retroactively and prospectively as follows: Effective April 1, 1988, the M & O portion of the rental shall be $2.87 per sq. ft. per year. Effective October 1, 1988, and each year thereafter on the same month and day for the remainder of this Lease, the M & O portion of the rental shall be adjusted upward or downward in accordance with the increase or decrease for the same period of time in the Consumer Price Index published by the Bureau of Labor Statistics of the United States Government, hereinafter called "CPI." In addition to any increase or decrease in the M & O portion of the rental resulting from changes in the CPI, $1.00 per sq. ft. will automatically be added to the M & 0 rate effective October 1, 1988, and an additional 51.00 per sq. ft. will likewise automatically be added to such rate on the same month and day of the next two succeeding years. Notwithstanding the date on which this Lease is executed, Lessee herein agrees to pay City rentals for the Exclusive Leased Premises retroactively in accordance with this Section 7.01 as though this Lease had been executed and bacame effective on April 1, 1988. However, in calculating such rentals, Lessee shall be given credit for those exclusive space rentals already paid to City since April 1, 1988. Any rentals due City after such calculations are made shall be immediately due and payable upon execution of this Lease. If such calculations indicate that exclusive space rentals have been overpaid, Lessee shall receive a credit for such overpayments. 3. Page 2 of 3 of Exhibit "A" of the Agreement, entitled "Southwest Airlines Exclusive Operations/Cargo Area, Lubbock International Airport, Passenger Terminal Building, Apron Level is hereby deleted and replaced by Exhibit "A -l" which is attached hereto and incorporated as if fully set forth herein. 4. This Addendum to the Agreement shall be effective upon execution. The remainder of the Agreement shall remain in full force and affect except as changed herein and pursuant to previously executed Addenda. Executed this 27th day of July 1999. ATTEST: Kaytt Darnell, City Secretary APPROVED AS90 CONTENT: Mark ,Wle, Managing Director of Aviadon APPROVED AS TO FORM: r SOUTHWEST AIRLINES, CO. BY: NAME. aryl PyS ��rK�y TITLE: �• r? �9*�v LUBBOCK INTERNATIONAL AIRPORT PASSENGER TERMINAL BUILDING APRON LEVEL . SOUTHWEST AIRLINES EXCLUSIVE OPERATIONS/CARGO AREA ADDITIONAL EXCLUSIVE SPACE PAGE 2\ot 3