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HomeMy WebLinkAboutResolution - 4728 - Non-Aeronautical Lease Agreement - S&H Welding Company - Building # 716, LIA - 02/09/1995Resolution No. 4728 February 9, 1995 Item #12 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 Non -Aeronautical Lease Agreement by and between the City of Lubbock and S & H Welding Company, attached hereto, 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 9t a February , 1995. DAVID R. i ANGSTON.MAYOR ATTEST: Betty . Johnson, City Secretary APPROVED AS TO CONTENT: m Newsome, Interim Director of Aviation APPROVED AS TO FORM: A44�Qa k/- �_ arold Willard, Assistant City Attorney HW:da ccdocs/A-S&H.res January 30, 1995 Resolution No. 4728 February 9, 1995 Item #12 NON -AERONAUTICAL LEASE AGREEMENT THE STATE OF TEXAS COUNTY OF LUBBOCK § This LEASE AGREEMENT, hereinafter referred to as the "Agreement" or "Lease," is entered into at Lubbock, Texas, by and between the City of Lubbock, Texas, hereinafter referred to as "Lessor," and S & H Welding Company, hereinafter referred to as "Lessee." WITNESSETH: WHEREAS, Lessor owns and operates a public airport designated as Lubbock International Airport and hereinafter called "Airport;" and WHEREAS, Lessor deems it advantageous to itself and to its operation of the Airport to lease unto Lessee Building No. 716 and certain surrounding unimproved land described herein, together with certain privileges, rights, uses and interests therein, as hereinafter set forth; and WHEREAS, Lessee intends to utilize the building and premises herein leased for the purpose of fabricating steel products and storage of parts and such other purposes as might be herein enumerated; and WHEREAS, the Airport Board of the City of Lubbock has approved and recommends that Lessee be granted this Agreement for the term hereinafter designated; and WHEREAS, the City Council of the City of Lubbock accepts the recommendation of the Airport Board and finds that execution of this Lease will properly serve the public interest of the citizens of the City of Lubbock; ARTICLE I NOW THEREFORE, for and in consideration of the covenants and conditions herein contained and other valuable consideration, Lessor hereby authorizes Lessee to exercise the rights, powers and privileges hereinafter set forth and does hereby lease to the Lessee certain premises, hereinafter described and called "Leased Premises," which are designated on Exhibit A attached hereto and incorporated herein by reference as part of this Agreement. 1.01. LEASED PREMISES. The Leased Premises shall consist of Building No. 716, which is approximately 16,000 square feet, and 18,700 square feet of adjacent unimproved property constituting a thirty-foot perimeter on the north and south sides of the aforementioned building and a twenty -foot perimeter on the east and west sides of the building. Said Leased Premises are located in the industrial area of Lubbock International Airport, shown on Exhibit A. 1.02. NON-EXCLUSIVE. 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. 1.03. PURPOSE. Lessee's use of said Leased Premises shall be for the sole purpose of fabricating steel products and storing parts unless herein stated otherwise. All such business operations at the Airport will be confined to the Leased Premises. 1.04. SIGNS. Lessee will erect no signs and will distribute no advertising at the Airport without the prior written consent of the Director of Aviation of Lessor. However, Lessee shall have the right to place signs identifying Lessee's business at locations approved by the Director of Aviation. Said signs shall be of a type, size and design approved in writing by the Director of Aviation. The installation of such signs must comply with all applicable City ordinances and shall be without cost to the Lessor. 1.05. 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 services at the Airport; LEASE AGREEMENT -- S & H WELDING COMPANY PAGE 2 2. To furnish said services on a fair, equal and nondiscriminatory basis to all users thereof, and 3. To charge fair, reasonable nondiscriminatory prices for each unit of sale or service, provided that the Lessee may make reasonable nondiscriminatory discounts, rebates or other similar types of price reductions for volume purchases. ARTICLE II TERM 2.01. The term of this Agreement shall be for a period of five (5) years commencing on the day of , 1994, and ending on the day of , 1999, subject, however, to earlier termination as hereinafter provided under Article VI. If this Agreement is not terminated pursuant to Article VI, Lessee may extend this Agreement for an additional period of five (5) years by written notification to the Director of Aviation of the Lessor that an extension is desired at least thirty (30) days prior to expiration of this Agreement. ARTICLE III RENTALS AND FEES 3.01. RENTAL. In consideration of the rights and privileges herein granted, Lessee shall pay to Lessor an annual rental for Building No. 716 of EIGHTEEN THOUSAND AND FIFTY-FOUR AND 40/100 DOLLARS ($18,054.40), which rental shall be due and payable, in advance, in twelve (12) equal monthly installments of ONE THOUSAND FIVE HUNDRED FOUR AND 53/100 DOLLARS ($1,504.53), on or before the first (1st) day of each month this Agreement is in effect. Additionally, Lessee shall pay to Lessor a land rental for the 18,700 square feet of adjacent unimproved land of ONE THOUSAND NINE HUNDRED EIGHTY-SEVEN AND 81/100 DOLLARS ($1,987.81), which rental shall be due and payable, in advance, in twelve (12) equal monthly installments of ONE HUNDRED SIXTY-FIVE AND LEASE AGREEMENT -- S & H WELDING COMPANY PAGE 3 65/100 DOLLARS ($165.65), on or before the first (1st) day of each month this Agreement is in effect. The aforesaid rental rate shall be adjusted upward or downward on January 1 of each year this Agreement is in effect in direct proportion to the percentage increase or decrease for the preceding twelve (12) months in the Consumer Price Index published by the Bureau of Labor Statistics of the United States Department of Labor. 3.02. DEPOSIT FOR SECURITY BADGES. In addition to the above rental, Lessee shall pay the City a processing fee and a deposit for security badges for each of Lessee's employees on the Leased Premises if it is determined by the Director of Aviation that badges are necessary to continue operations. Lessor's Director of Aviation shall determine the amount of both the processing fee and deposit, each of which shall be reasonable and uniform for all similarly situated tenants at the Airport. Said deposit shall be refundable upon return of the badges to the Director of Aviation. 3.03. DEFAULT FOR FAILURE TO PAY RENTALS OR FEES. If Lessee fails to pay any rentals or fees payable to Lessor hereunder within fifteen (15) days of their due date, the Director of Aviation of Lessor may, at his option, upon ten (10) days written notice to Lessee (unless within such ten day period Lessee shall have corrected its failure to pay) immediately or at any time thereafter, enter into and upon the Leased Premises, or any part thereof in the name of the whole, and repossess the same without being deemed guilty of trespass. 3.04. PAYMENTS. All payments that become due and payable by Lessee shall be made to the City of Lubbock at the office of the Director of Aviation, Lubbock International Airport, Lubbock, Texas, 5401 N. Martin Luther King Blvd., Rt. 3 Box 389, Lubbock, Texas 79401. Lessee shall pay Lessor a late payment charge of five percent (5%) of the total amount of rental payable if payment is not made on or before the first (1 st) day of each month. LEASE AGREEMENT -- S & H WELDING COMPANY PAGE 4 ARTICLE IV RIGHTS RESERVED TO LESSOR The following rights are reserved unto Lessor, and Lessee agrees that all rights, powers and privileges granted under this Lease shall be subordinated to Lessor's rights as hereinafter stated. 4.01. AIRPORT HAZARDS. 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 the erection of any building or other structure on the Airport which, in the opinion of the Director of Aviation of Lessor, would limit the usefulness of the Airport or constitute a hazard to aircraft. 4.02. AGREEMENT WITH UNITED STATES. During 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 all or part of the landing area, the publicly - owned air navigation facilities, and any other area or facilities of the Airport. If any such agreement is executed, the provisions of this Lease, insofar as they are inconsistent with the provisions of the agreement with the Government, shall be suspended. The original term of this Lease may be extended by mutual agreement between the Lessor and Lessee by the amount of the period of such suspension. 4.03. SUBORDINATION OF LESSEE'S RIGHTS. This Agreement shall be subordinate to the provisions of any existing or future agreement between the Lessor and the United States pertaining 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. 4.04. SUSPENSION OF LESSEE'S RIGHTS. All rights, privileges and interests acquired herein by Lessee, at the option of the Director of Aviation of Lessor, following thirty (30) days written notice to Lessee, may be suspended if such suspension is found by the Director of Aviation, acting in good faith, to be necessary for the Lessor to secure LEASE AGREEMENT — S & H WELDING COMPANY PAGE 5 federal financial aid for the development of the Airport, or further development of aeronautical operations thereon. 4.05. 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. 4.06. 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. 4.07. 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. ARTICLE V GENERAL CONDITIONS This Lease is granted subject to the following provisions and conditions: 5.01. RULES AND REGULATIONS. In conducting its business on the Leased Premises, Lessee shall comply with all federal, state and local laws, ordinances, rules and regulations now in force or hereinafter prescribed or promulgated by authority or by law. Lessee further agrees that in the event that 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 laws, ordinances, rules or regulations, 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. Failure of the Lessee to comply with any requirement of this paragraph shall be cause for immediate termination of this Lease by Lessor's Director of Aviation. LEASE AGREEMENT -- S & H WELDING COMPANY PAGE 6 5.02. IMPROVEMENTS OR ALTERATIONS. Lessee shall not make, permit or suffer any additions, improvements or alterations to the Leased Premises without prior written consent of the Director of Aviation of Lessor. Any such additions, improvements or alterations made with the consent of the Director of Aviation shall be solely at the expense of Lessee, and unless such consent provides specifically that title to the additions, improvements or alterations so made shall vest in Lessee, title thereto shall at all times remain in Lessor, and such additions, improvements or alterations shall be subject to all terms, covenants and conditions of this Lease. 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. 5.03. REMOVAL AND DEMOLITION. Lessee shall not remove or demolish, in whole or in part, any improvements that already exist on the Leased Premises without prior written consent of the Director of Aviation of Lessor, who may, in his discretion, condition such consent upon the obligation of Lessee to replace the same improvements specified in such consent upon termination or expiration of this Lease. The Director of Aviation shall not withhold consent unreasonably and shall not impose unreasonable conditions on his consent. 5.04. LIENS. Lessee shall not bind or attempt to bind Lessor for payment of any money in connection with installations, alterations, additions or repairs to the Leased Premises or to any of Lessee's equipment or facilities located on the Leased Premises and shall not permit any mechanic's, materialman's or contractor's liens to arise against the Leased Premises or any improvements, equipment, machinery or fixtures thereon belonging to Lessor, and Lessee expressly agrees that it will keep and save Lessor harmless from all costs and damages resulting from any lien or liens of any character created or that may be asserted through any act or thing done by Lessee. 5.05. LESSEE'S DUTY TO DEFEND. In the event any mechanic's or other liens or orders for payment shall be filed against the Leased Premises or improvements thereon, LEASE AGREEMENT — S &c H WELDING COMPANY PAGE 7 or the property of Lessor located thereon, during the term of this Agreement, or during any extension hereof, Lessee shall within ten (10) days cause the same to be canceled and discharged of record by bond or otherwise, at the election and expense of Lessee, and shall also defend on behalf of Lessor, at Lessee's sole cost and expense, any action, suit or proceeding which may be brought thereon or for the enforcement of such liens or orders. 5.06. INSPECTION OF LEASED PREMISES. Lessor, acting by and through its Director of Aviation or his designated representatives, shall have the right to inspect the Leased Premises at all reasonable times during the term of this Lease and during any extension thereof. 5.07. JANITORIAL SERVICES. Lessee shall, at its own expense, provide janitorial services for the Leased Premises. Said services may be provided by Lessee alone, or by Lessee in conjunction with other tenants who are now or may hereafter be Lessees at the Airport. 5.08. MAINTENANCE. Lessor assumes no responsibility for the condition of the Leased Premises and shall not assume any responsibility for maintenance, upkeep or repairs necessary to keep the Leased Premises in a safe and serviceable condition. 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 and its business operations thereon; shall maintain and repair all improvements, facilities and equipment thereon, including any drainage installations, paving, curbs, buildings and other improvements; and shall repaint Building No. 716 as often as necessary to maintain a clean and attractive appearance. All such maintenance and repairs shall be performed with quality materials and in a workmanlike manner. All paint colors and schemes shall harmonize and shall be subject to prior approval of the Director of Aviation for the Lessor. The Director of Aviation of Lessor shall be the sole judge of the quality of maintenance, and upon written notice by the Director of Aviation to Lessee, Lessee shall LEASE AGREEMENT — S & H WELDING COMPANY PAGE 8 be required to perform whatever maintenance such Lessor's agent deems necessary. If said maintenance is not undertaken by Lessee within twenty (20) days after receipt of written notice, the Director of Aviation shall have the right to enter upon the Leased Premises and perform the necessary maintenance, the cost of which shall be borne by Lessee. 5.09. LESSEE'S DUTY TO REPAIR. Except as provided herein, any property of Lessor, or for which Lessor may be responsible, which is damaged or destroyed incident to the exercise of the rights or privileges herein granted, or which damage or destruction is occasioned by the negligence of Lessee, its employees, agents, servants, patrons or invitees, shall be properly repaired or replaced by Lessee to the satisfaction of the Director of Aviation of Lessor, or in lieu of such repair or replacement, Lessee shall, if so required by the Director of Aviation, pay Lessor money in any amount deemed sufficient by him to compensate the Lessor for the loss sustained or expense incurred by Lessor as a result of the loss of, damage to, or destruction of such property. 5.10. TRASH DISPOSAL. Lessee shall, at its sole expense, provide a complete and proper arrangement for the adequate sanitary handling and disposal, away from the Airport, of all trash, garbage and other refuse resulting from its business operations authorized by this Agreement. 5.11. UTILITIES. Lessee agrees to pay for all utility charges and fees resulting from or connected with Lessee's use of the Leased Premises. 5.12. TAXES, ASSESSMENTS AND LICENSES. Lessee shall promptly pay all taxes and assessments of whatever character that may be lawfully levied or charged upon Lessee's leasehold improvements and upon Lessee's use of the Leased Premises. Lessee shall obtain and pay for all licenses and permits necessary or required by law for the construction of any additional improvements, the installation of equipment and furnishings, and any other licenses or permits necessary for the conduct of its business. LEASE AGREEMENT -- S & H WELDING COMPANY PAGE 9 5.13. HOLD HARMLESS. Lessee agrees to indemnify, defend and forever save Lessor, its authorized agents, representatives and employees, harmless from and against any and all penalties, liability, annoyances or losses resulting from claims or court actions of any nature arising directly or indirectly out of any acts or omissions of Lessee, its agents, servants, guests, employees or business visitors under this Agreement. 5.14. PUBLIC LIABILITY AND PROPERTY DAMAGE INSURANCE. Lessee shall maintain at all times during the term of this Lease, and during any extension thereof, at its sole expense, with an insurance underwriter acceptable to the Director of Aviation of Lessor and authorized to do business in the State of Texas, adequate insurance against claims of public liability and property damage resulting from Lessee's business activities at the Airport. The amount of insurance coverage shall not be less the ONE HUNDRED THOUSAND DOLLARS ($100,000) for property damages as a result of any one event, or less than THREE HUNDRED THOUSAND DOLLARS ($300,000) for personal injury or death of any one person in any one event, or less than FIVE HUNDRED THOUSAND DOLLARS ($500,000) for personal injury or death of two or more persons in any one event. All policies shall contain an agreement on the part of the respective insurers waiving the right of such insurers to subrogation. Certificates of insurance or other satisfactory evidence of insurance shall be filed with the Director of Aviation prior to the commencement of the term of this Lease. Each policy shall name the City of Lubbock as an additional insured as its interest may appear, require the insurer to notify the Director of Aviation of the City of Lubbock, Texas, of any alteration, nonrenewal or cancellation, and remain in full force and effect until at least ten (10) days after such notice of alteration, nonrenewal or cancellation is received by the Director of Aviation. 5.15. FIRE AND HAZARD INSURANCE. Lessee shall insure for fire and extended coverage risks all of Lessee's improvements on the Leased Premises and shall keep such insurance in full force and effect during the entire term of this Lease, and during any extension thereof. Such insurance shall be in an amount equal to 80% of the full LEASE AGREEMENT — S & H WELDING COMPANY PAGE 10 insurable replacement value of such improvements, said value to be determined by the Director of Aviation. All fire insurance policies shall contain loss payable endorsements in favor of the parties as their respective interests may appear hereunder, and an agreement on the part of the insurers waiving the right of such insurers to subrogation. Lessee shall furnish evidence of certificates of insurance to the Director of Aviation prior to taking possession of the Leased Premises. 5.16. INDEMNITY. Lessee agrees to hold the Lessor 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 business operations and/or use of the Leased Premises and common areas owned by the 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. 5.17. LESSEE SHALL VACATE. On or before the date of expiration of this Agreement, Lessee shall, as required by the Director of Aviation of Lessor, vacate said Leased Premises, remove all property of Lessee, and restore the Leased Premises and any improvements, facilities and equipment thereon to the same or better condition on such date of expiration as when received, ordinary wear and tear excepted. If, however, this Lease is terminated pursuant to Article VI, Lessee shall vacate the Leased Premises, remove said property, and restore the Leased Premises, and any improvements, facilities and equipment thereon as aforesaid within ten (10) days following the date of such termination; provided, however, that Lessee's right to remove its property is subject to the condition that Lessee has paid in full all amounts due and owed to Lessor under this Agreement. If Lessee shall fail or neglect to remove said property and so restore the Leased Premises and all improvements, facilities and equipment thereon on or before said expiration or within ten (10) days of such termination, then at the option of Lessor, said property shall either become the property of Lessor without compensation therefor or the Director of Aviation of Lessor may cause such property to be removed and the Leased LEASE AGREEMENT -- S &c H WELDING COMPANY PAGE I I Premises and any improvements, facilities and equipment included thereon to be restored at the expense of 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. 5.18. NONDISCRIMINATION. Lessee, its agents and employees will not discriminate against any person or class of persons by reason of race, color, sex, religion or national origin in providing any services or in the use of any of its facilities provided for the public; nor shall Lessee discriminate against any person or class of persons on the basis of age in a manner that violates any prohibition against such discrimination under the Age Discrimination Act of 1975, 29 U.S.C. §§ 621 et. sec.. Lessee further agrees to comply with such enforcement procedures as the United States might demand that Lessor take in order to comply with the Sponsor's Assurances. Lessee agrees to not discriminate against any employees or applicants for employment because of race, color, age, sex, religion or national origin. Lessee also agrees to take affirmative action to ensure that applicants are employed and that employees are treated during employment without regard to their race, color, age, sex, religion 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. Lessee will also 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 Lessee. Lessee also agrees 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 LEASE AGREEMENT -- S & H WELDING COMPANY PAGE 12 provision of similar services or benefits, Lessee shall maintain and operate such facilities and services in compliance with all 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. 5.19. WARRANTY OF NO SOLICITATION. Lessee warrants that it has not employed any person employed by Lessor to solicit or secure this Agreement upon any agreement for a commission, percentage, brokerage or contingent fee. 5.20. NO ASSIGNMENT OR SUBLETTING. Except with prior written consent of the Director of Aviation of the Lessor, Lessee shall not sublet any part of the Leased Premises or assign any of its rights hereunder. No such assignment or subletting made with the consent of the Director of Aviation shall affect Lessee's obligations to make all required rental and fee payments hereunder upon default of any assignee or subtenant. 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. 5.21. WAIVER. The failure of Lessor to insist in any one or more instance upon performance of any of the terms, covenants or conditions of this Lease shall not be construed as a waiver or relinquishment of the future performance of any such terms or conditions, and Lessee's obligation with respect to such future performance shall continue to be in full force and effect. Furthermore, the acceptance of rentals or fees by Lessor after Lessee's failure to perform, keep or observe any of the terms, covenants or conditions of this Lease shall not be deemed a waiver by Lessor to cancel this Agreement for such failure. 5.22. DUTY TO PREVENT UNAUTHORIZED ACCESS. Lessee shall prohibit unauthorized persons, vehicles and animals from obtaining access or entry into the air operations area and any other sterile area at the Airport through those Airport premises which Lessee either controls or has possession of under this Agreement; and Lessee LEASE AGREEMENT - S & H WELDING COMPANY PAGE 13 agrees that in the event that a civil penalty or fine is levied against the Airport or Lessor as a result of Lessee's failure to comply or act in accordance with this provision, or any other applicable federal, state or local statutes, ordinances, rules and regulations affecting the use, occupancy or operation of any of said premises, Lessee shall immediately reimburse the Lessor the full amount of the penalty or fine and correct the act or omission leading to, causing or contributing to the violation. 5.23. SECURITY PLAN. Lessee shall submit a Security Plan to the Director of Aviation of Lessor which is acceptable to the Director of Aviation, the Airport Security Coordinator and the Federal Aviation Administration if it is determined by the Director of Aviation that such a plan is necessary to continue operations. Failure to submit an acceptable Security Plan upon request shall be grounds for immediate termination of this Agreement. 5.24. STANDARDS. Lessor reserves the right to establish standards for the construction and maintenance of and alterations, repairs, additions or improvements to Lessee's facilities. This includes structural design, color, materials used, landscaping and maintenance of Lessee's facilities and the Leased Premises. Lessor also reserves the right to issue through its 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. 5.25 ACCESS. Lessee is herein granted the right of ingress to and egress from the Leased Premises over and across common or public roadways serving the Airport. Such right of ingress and egress, however, shall be subject to all laws, ordinances, rules and regulations now existing or hereafter promulgated by the City of Lubbock or other lawful authority. LEASE AGREEMENT -- S & H WELDING COMPANY PAGE 14 5.26 TITLE TO LEASED PREMISES. Lessee agrees that it does not acquire any equity or title to the Leased Premises as a result of this Agreement and that the Leased Premises shall remain the sole property of Lessor. 5.27 STORED CONTENTS. Lessee agrees that it will not store or permit storage of gasoline, oil, paint or any other flammables on the Leased Premises and that no smoking or open flame will be permitted thereon. 5.28 LANDLORD'S LIEN. Lessee hereby gives Lessor a lien upon all of its property, now or at any time hereafter placed in or upon the Leased Premises, to secure the prompt payment of the rentals and fees herein required, and Lessee hereby waives all exemptions for such property, and any portion thereof, insofar as permitted by law. ARTICLE VI TERNIINATION This Agreement is subject to termination for the reasons set forth below, provided that ten (10) days written notice is given to the nonterminating party. 6.01. LESSEE'S RIGHT TO TERMINATE. Lessee may terminate upon the happening of any of the following: A. The permanent abandonment of the Airport as an air terminal by Lessor. B. The issuance by any court of competent jurisdiction of an injunction in any way preventing or restraining the use of the Leased Premises for at least thirty (30) days. C. 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 thirty (30) days after written notice from Lessee of the existence of such breach. D. 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 Lessee from conducting its business under this Agreement, if such restriction is to continue or has continued for a period of three (3) months or more. LEASE AGREEMENT -- S & H WELDING COMPANY PAGE 15 6.02. LESSOR'S RIGHT TO TERMINATE. Lessor may terminate upon the happening of any of the following: A. If the Lessee makes an assignment for the benefit of creditors; or files a voluntary petition of bankruptcy; or if proceedings in bankruptcy are instituted against Lessee and Lessee is thereafter adjudicated as bankrupt pursuant to such proceedings; 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 under any bankruptcy, insolvency, readjustment of debt, dissolution or liquidation law of any jurisdiction, whether now or hereafter in effect. B. If Lessee shall abandon and discontinue operations under this Agreement. C. If Lessee shall default in or fail to make any rental or fee payments at the time and in the amounts required under this Agreement. D. If 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. E. If 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. F. 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 of aeronautical operations thereon. Except where this Lease provides for immediate termination, Lessor shall give written notice to Lessee to correct or cure any such default, failure to perform or breach and if, within ten (10) 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 the Director of Aviation of Lessor, then and in such event the Director of Aviation shall have the right, at once and without further notice to Lessee, to declare this Agreement LEASE AGREEMENT -- S & H WELDING COMPANY PAGE 16 terminated and to enter upon and take full possession of the Leased Premises and, provided further, that upon the happening of any of the contingencies enumerated in Article VI, Section 6.02, numbered Paragraph A hereof, this Agreement shall be deemed to be breached by Lessee and thereupon "ipso facto," and without entry or any other action by Lessor, shall automatically terminate and be reinstated only if such involuntary bankruptcy or insolvency proceedings, 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 any of said latter events, this Agreement shall be reinstated as if there had been no breach occasioned by the happening of the contingency, provided that Lessee shall, within ten (10) days after the final denial, vacating or setting aside of such petition, or the 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. 6.03. FIRE DAMAGE. In the event the Leased Premises are damaged by fire or other accidental cause during the term of this Agreement or during any extension thereof, so as to become totally or partially unusable, Lessor shall have the option to restore such Leased Premises. If Lessor exercises its option to restore the same, Lessor shall proceed with due diligence. If the damage is so extensive as to amount practically to the total destruction of the utility of the Leased Premises for the purposes expressed in this Agreement, Lessee's obligation to pay rentals and fees hereunder shall abate for the time and to the extent that the Leased Premises have been rendered unusable. Should Lessor not exercise its option to restore the Leased Premises, this Lease shall terminate, such termination to be effective on the date of damage by fire or other accidental cause, and all rentals and fees due pursuant to this Agreement shall be apportioned to that date. LEASE AGREEMENT -- S & H WELDING COMPANY PAGE 17 6.04. OWNERSHIP. Within thirty (30) days after expiration or termination 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 remove from the Leased 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 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 expiration or termination of this Agreement. In the event Lessor terminates this Agreement for cause, as contained herein, or if Lessee discontinues its business on the Leased Premises at any time prior to expiration of the term, or the expiration of the extension, Lessor shall retain ownership of Lessee's improvements to the extent of the rentals due for the remainder of the term or extension. ARTICLE VII MISCELLANEOUS PROVISIONS 7.01. NOTICES. Notices to the Lessor provided for herein shall be sufficient if sent by certified mail, postage prepaid, addressed to the Director of Aviation, Route 3, Box 389, Lubbock, Texas 79041, and notices to Lessee, if sent by certified mail, postage prepaid, to the address for Lessee on file with the Director of Aviation for Lessor. 7.02. HOLDING OVER. In the event Lessee remains in possession of the Leased Premises after the expiration of this Agreement, without any written renewal or extension LEASE AGREEMENT -- S & H WELDING COMPANY PAGE 18 of this Agreement, such holding over shall not be deemed as a renewal or extension of this Lease, and may be terminated at any time by the Director of Aviation of Lessor. Executed this 9th day of February , 1994. LESSEE: S & H WELDING COMPANY BY: HW:da gbityatt\.S&H.doc November 10, 1994 ATTEST: Betty M. JohnsorV City Secretary APPROVED AS TO CONTENT: Tim Newsome, A.A.E. Interim Director of Aviation APPROVED AS TO FORM: Rdr-o—ld Willard, Assistant City Attorney LEASE AGREEMENT — S & H WELDING COMPANY PAGE 19 FOOTHILL 00 m s EXHIBIT A 1 ,STT 11 EXISTING UG FUEL TANKS BUILDING #716 l N 1 • 66 52 r f /1 7 /� n n n _?■ ........«...