HomeMy WebLinkAboutResolution - 5129 - Second Agreement -Nortec Specialty Steels Co., Inc -Amend Non-Aeronautical Lease - 03/14/1996Resolution No. 5129
March 14, 199E
Item #28
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RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: k
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 Second Agreement to Amend Non -
Aeronautical Lease with Nortec Specialty Steels Co., Inc., attached hereto and 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 th day March , 1996.
AVID R. LANGSTON, MAYff
ATTEST:
I &tt'-"I I �L
etty . Johns n, City Secretary
APPROVED AS TO CONTENT:
Mar . Earle, Aviation Manager
APPROVED AS TO FORM:
Harold Willard, Assistant City Attorney
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ccdocs/a-nortec.res
January 25, 1996
Resolution No. 5129
March 14, 1996
Item #28
THE STATE OF TEXAS
KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF LUBBOCK §
SECOND AGREEMENT TO AMEND NON -AERONAUTICAL LEASE
This Agreement is entered into at Lubbock, Texas, by and between the City of
Lubbock, a Texas Home Rule Municipality, hereinafter referred to as "Lessor," and
Nortec Specialty Steels Co., Inc., formerly known as Texas General Steel Co., Inc.,
hereinafter referred to as "Lessee."
WITNESSETH:
WHEREAS, Lessor and Lessee's predecessor executed a Non -Aeronautical Lease
on the 24th day of December, 1984, in which Texas General Steel Co., Inc. leased certain
buildings and unimproved property at the Lubbock International Airport (hereinafter
called the "Airport") from the Lessor for manufacturing and storage purposes; and
WHEREAS, Lessor and Lessee executed an Agreement to Amend Non -
Aeronautical Lease on the 19th day of December, 1991, in which Lessor gave Lessee a
right of first refusal to lease Building #716, as shown on Exhibit A attached to this
Agreement, on such terms and conditions as the parties mutually agreed to in the event
such building ceased to be occupied by another tenant at the Airport during the term of
the Non -Aeronautical Lease; and
WHEREAS, Building #716 recently ceased to be occupied and both the Lessor
and Lessee desire to further amend the Non -Aeronautical Lease to include Building #716
as part of the leased premises;
NOW THEREFORE, the Non -Aeronautical Lease executed by Lessor and Lessee
on the 24th day of December, 1984, is hereby amended in the following manner:
ARTICLE I of said Lease is amended to read as follows:
ARTICLE I
NOW THEREFORE, in consideration of the covenants and
conditions herein contained and other valuable consideration, the Lessor
authorizes the Lessee to exercise the rights, powers and privileges
hereinafter set forth and does hereby lease to the Lessee the premises
hereinafter described and being:
Buildings #710, #712, 4714, #716 and #718, the land
immediately surrounding each such building, all of which
are located in the Industrial Section of Lubbock
International Airport and are depicted on "Exhibit A"
attached hereto and made a part hereof for all purposes.
The Lessor further herein gives the Lessee a right of first refusal to
lease Tract A, also shown on Exhibit A, on such terms and conditions as
are agreeable between the parties in the event such real property is to be
leased by the Lessor.
The original term of this Agreement shall be for a period of twenty
(20) years, commencing upon the 24th day of December, 1984. Lessee
shall have the option to extend this Agreement for one five (5) year period.
Such option must be exercised in writing at least sixty (60) days prior to
the expiration of the original term. If the Lessee desires to exercise said
option, the rental rates for the buildings and land herein leased shall
continue to be calculated in accordance with Article II of this Lease.
2. ARTICLE 11 of said Lease is amended to read as follows:
ARTICLE II
In consideration of the rights and privileges herein granted, Lessee
shall pay to Lessor building rental for Buildings #710, #712, #714 and
#718 of ONE THOUSAND NINE HUNDRED SIXTY-TWO AND
021100 DOLLARS ($1,962.02) per building per month, payable in
advance, by the tenth (10th) day of each month.
In further consideration of the rights and privileges herein granted,
Lessee shall pay to Lessor a building rental for Building #716 of ONE
THOUSAND AND NO/ 100 DOLLARS (51,000.00) per month, payable
in advance, by the tenth (10th) day of each month. Such structure shall be
used by Lessee for storage purposes only and shall not be used for
manufacturing or assembly of steel or steel parts. Lessee shall have use of
Building #716 for storage purposes for a period of three (3) years
beginning on the 14th day of March , 1996, but
shall have the option to renegotiate with Lessor prior to the end of the
three-year period for further use of this building on such terms and
conditions as are mutually agreeable to both parties.
The parties hereto mutually agree that the rental rates set forth
above shall be adjusted upward or downward for each ensuing year
beginning January 1, 1997, in direct proportion to the fluctuation of the U.
S. Department of Labor, Bureau of Labor Statistics Consumer Price Index
Second Agreement to Amend Non -Aeronautical lease
Nortec Specialty Steels Co., Inc. -- Page 2
(CPI). For the purpose of computing all adjustments, the CPI as of
January 1, 1996, shall be construed as the base period.
Executed this 14th day of March , 1996.
NORTEC SPECIALTY STEELS CO.,
INC.
e.l�:CL�r�iiEf'�
ROWLAND T. MADDISON, PRESIDENT
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cityattla-nortec.doc
January 25, 1996
Second Agreement to Amend Non -Aeronautical Lease
Nortec Specialty Steels Co., Inc. -- Page 3
OF LUBBOCK, TEXAS
VID R. LANCIVON, MAY,
ATTEST:
Betty John n, City Secretary
APPROVED AS TO CONTENT:
"-� C/ f:- -
" N. Earle, Aviation Ra—Rager
APPROVED AS TO FORM:
Harold Willard, Assistant
City Attorney