HomeMy WebLinkAboutResolution - 3897 - Lease Agreement - TNGAB - US Armed Forces Reserve Center, LIA - 05/28/1992Resolution No. 3897
May 28, 1992
Item #10
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 Lease Agreement
by and between the City of Lubbock and the Texas National Guard Armory Board,
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
ATTEST:
, city Secretary
APPROVED'AS TO CONTENT:
I rs G " it 7: �v�
Bern Case, Director of Aviation
APPROVED AS TO FORM:
�.7 Y -J-)
flarold Willard, Assistant City
Attorney
HW:js/LSE-TNGA.RES/D2-Agenda
28th day of May 1992.
o
Resolution No. 3897
May 28, 1992
Item #10
THE STATE OF TEXAS §
KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF LUBBOCK §
LEASE AGREEMENT
THIS LEASE AGREEMENT is hereby made and entered into on this
the 28th day of May , 1992, by and between the
CITY OF LUBBOCK, TEXAS, a home rule municipal corporation, here-
inafter called "LESSOR," and the TEXAS NATIONAL GUARD ARMORY BOARD,
a body politic and corporate, existing under the laws of the State
of Texas, hereinafter called "LESSEE."
WITNESSETH
WHEREAS, LESSOR owns and operates the Lubbock International
Airport and the adjoining grounds and facilities compatible with
such operation; and
WHEREAS, LESSOR finds it to be in the public interest and to
the best benefit of the citizens of the City of Lubbock to continue
to develop the Lubbock International Airport, hereinafter called
"Airport," as a major air transportation hub; and
WHEREAS, LESSOR also finds that economic development is a
vital part of the ongoing operations of the Airport; and
WHEREAS, LESSOR is authorized by V.T.C.A., Local Government
Code §380.001 and Vernon's Ann.Civ.St. art. 46d-2 to undertake
programs for economic development; and
WHEREAS, LESSEE desires to lease from LESSOR approximately
25.038 acres of property at the Airport on which to construct a
123,602 square foot joint use military reserve center, more or
less, suitable for use by the Texas National Guard and similar
organizations and which shall be known as the United States Armed
Forces Reserve Center in Lubbock, Texas; and
WHEREAS, the construction and the operation of the joint use
military reserve center on Airport premises is expected to
strengthen and enhance the local economy by infusing large amounts
of capital into Lubbock and neighboring communities; and
WHEREAS, the LESSOR is authorized under Article 380.001 to
contract with LESSEE for the implementation and administration of
the LESSOR'S economic development programs; and
WHEREAS, LESSEE has represented to the LESSOR that LESSEE has
the ability to construct the joint use military reserve center
hereinabove described on the leased premises within a reasonable
time after the execution of this agreement; and
WHEREAS, the LESSOR finds that it is in the best interest of
the citizens of the City of Lubbock to lease the property here-
inafter described to LESSEE for the purpose of constructing and
operating the aforementioned facility; and
- 2 -
WHEREAS, LESSOR further finds that allowing LESSEE to con-
struct and operate a joint use military reserve center on Airport
premises under the terms and conditions hereinafter described will
be beneficial to the operation and economic development of the
Airport; NOW THEREFORE:
LESSOR AND LESSEE DO HEREBY AGREE AS FOLLOWS:
CONSIDERATION
In consideration of the sum of ONE AND N0/100 DOLLARS ($1.00)
and the further consideration of LESSEE'S promise to construct, at
LESSEE'S sole expense, a 123,602 square foot joint use military
reserve center at the Airport in accordance with the documents
dated December 10, 1991, and attached hereto as Exhibit "All and
made a part hereof for all purposes, the LESSOR hereby demises and
leases unto the LESSEE, upon the terms and conditions hereinafter
set forth, and the LESSEE hereby takes from LESSOR the demised
premises described in Exhibits "B" and nCn attached hereto and made
a part hereof for all purposes.
TERM
The initial term of this lease shall be for a period of forty
(40) years, which term shall commence on the day of execution of
this lease between the LESSOR and the LESSEE. Upon expiration of
the initial term, at the option of LESSEE, this lease may be re
- 3 -
newed or extended for up to two (2) additional periods of twenty
(20) years under the same consideration and conditions contained
herein for the initial term of this agreement.
CONSTRUCTION OF RESERVE CENTER
LESSEE hereby acknowledges, agrees, represents and covenants
that it will undertake the construction of the joint use military
reserve center described in Exhibit "All on the leased premises as
soon after the execution of this agreement as practical. LESSEE
further represents that it will, as a condition of this Lease,
prosecute the construction of the aforementioned facility with due
diligence, but in no event will construction not be completed
within five (5) years from the date of execution of this agreement.
LESSEE agrees to assume responsibility for procuring all
architects, engineers, contractors and subcontractors necessary to
construct the facility contemplated by this agreement.
LESSEE understands and agrees that the facility to be con-
structed by LESSEE in consideration for this agreement shall be
built in accordance with the documents provided to LESSOR dated
December 10, 1991, and which are attached hereto as Exhibit IIA.11
LESSEE further agrees to submit specifications to LESSOR'S Director
of Aviation for approval prior to construction, which approval
shall not be unreasonably withheld.
- 4 -
MAINTENANCE OF LEASED PREMISES
LESSEE agrees that it shall be solely responsible at all times
for maintenance of the demised premises and the facility whose
construction is contemplated by this lease. LESSOR assumes no
responsibility for the condition of the leased premises and reserve
center or for maintenance, upkeep or repairs necessary to keep the
premises and facility in a safe and presentable condition, free of
trash, debris and weeds. Upon written notice from the LESSOR'S
Director of Aviation, the LESSEE shall be required to perform such
maintenance on the leased premises and reserve center as such indi-
vidual reasonably deems necessary. Failure by LESSEE to comply
within ten (10) days following receipt of such written notice from
the Director of Aviation shall give the LESSOR the right to enter
upon the leased premises and reserve center and perform the neces-
sary maintenance, the cost of which shall be borne by the LESSEE.
LESSEE shall, at its own expense, provide janitorial and cus-
todial services for the leased premises and reserve center. Said
services may be provided by LESSEE alone or by LESSEE in conjunc-
tion with other tenants who are now or who may hereafter be Lessees
at the Airport.
LESSEE shall also, at its sole expense, provide for the com-
plete and adequate sanitary handling and disposal, away from the
Airport, of all trash, garbage and other refuse which results from
LESSEE'S use of the leased premises or reserve center.
- 5 -
LESSOR will maintain (but may relocate) roads on the Airport
which provide access to the leased premises and reserve center in a
suitable condition for use by motor vehicles.
MAINTENANCE OF AIRPORT
LESSOR covenants and agrees that it will during the initial
term of this agreement, and any subsequent extension, operate and
maintain the Airport as a public facility consistent with and pur-
suant to the Assurances given by the LESSOR to the United States
Government under federal law.
PROPERTY PERMANENTLY AFFIXED TO PREMISES
The reserve center and any other property belonging to LESSEE
which becomes permanently attached to the leased premises shall
become the property of the LESSOR upon termination or cancellation
of this agreement.
SUBLEASES AND ASSIGNMENTS
LESSEE will not directly or indirectly assign, sublet, sell,
hypothecate or otherwise transfer this lease or any portion of the
leased premises or reserve center to any individual or organization
(other than units representing branches of the United States Armed
Forces or the Adjutant General's Department of the State of Texas)
without the prior written consent of LESSOR'S Director of Aviation.
ADVERTISING
LESSEE will erect no signs and will distribute no advertising
on the leased premises or on other Airport property without the
prior written consent of the LESSOR'S Director of Aviation.
UTILITIES
LESSEE shall assume and be responsible for the payment of all
costs or charges for metered utility services provided to Lessee
during the initial term hereof, and any subsequent extension.
LESSEE shall have the right to connect to any storm and sanitary
sewers and water utility outlets, and the cost of usage, extension,
installation and meters, where required, shall be at no cost to the
LESSOR.
INDEMNIFICATION
LESSEE agrees that it will indemnify and save the LESSOR
harmless from all claims and demands of subcontractors, laborers,
workmen, mechanics, materialmen and furnishers of machinery and
parts thereof, equipment, power tools and supplies, including com-
missary, arising as a result of the construction of the reserve
center. Upon request from the LESSOR, LESSEE shall furnish
satisfactory evidence that all of the obligations of the nature
hereinabove described have been paid, discharged or waived.
- 7 -
LESSEE shall indemnify fully and save harmless the LESSOR, its
officers, agents and employees from any and all claims and actions,
and any and all expenses incidental to the investigation and de-
fense thereof, based upon or arising out of damages or injuries to
third persons or their property, and caused by the fault or negli-
gence of LESSEE, its contractors, officers, agents, employees, or
invitees in the construction, use or occupancy of the leased
premises or reserve center.
INSURANCE
LESSEE agrees to procure prior to construction of the reserve
center and keep in effect at all times during the initial term of
this lease, and during any subsequent extensions, the forms of
insurance set forth below. All policies and certificates shall
contain a provision requiring the insurers to give the LESSOR
written notice of cancellation or of any material change in said
policies or certificates at least ten (10) days in advance of the
effective date of such cancellation or material change. Each
policy shall also contain a provision waiving the right of such
insurers to subrogation.
LESSEE shall maintain all insurance required hereunder with
insurance underwriters authorized to do business in the State of
Texas and satisfactory to the LESSOR. All policies shall name•the
City of Lubbock, its officers, servants, agents and employees as
additional insureds. Before construction of the reserve center is
commenced, LESSEE shall provide LESSOR with certificates of insur-
ance which indicate that all insurance and provisions required
hereunder are in full force and effect.
(A) Fire Insurance - LESSEE shall insure the reserve center
for fire and extended coverage risks. Such insurance
shall be in an amount equal to eighty percent (80%) the
full insurable replacement value of such facility. All
fire insurance policies shall contain loss payable
endorsements in favor of the parties as their respective
interests may appear hereunder. LESSOR and LESSEE agree
that any payments received from such insurers as a result
of loss under such policies shall be applied toward re-
pair and reconstruction of said facility.
(B) Public Liability and Property Damage Insurance - Prior to
undertaking construction of the reserve center, LESSEE
shall obtain comprehensive general liability insurance
for the protection of the LESSOR, its officers, agents
and employees. The amount of insurance shall not be less
than TWO HUNDRED FIFTY THOUSAND AND N0/100 DOLLARS
($250,000.00) for personal injury or death of any one
person in any one event, or less than FIVE HUNDRED
THOUSAND AND NO/100 DOLLARS ($500,000.00) for personal
injury or death of two or more persons in any one event,
or less than ONE HUNDRED THOUSAND AND N0/100 DOLLARS
($100,000.00) for property damage arising out of any one
accident or event.
Insurance coverages required of LESSEE shall be subject to
adjustment from time to time to comply with any changes in minimum
requirements determined by LESSOR to be necessary.
SPONSOR'S ASSURANCE SUBORDINATION
This lease shall be subordinate to the provisions of any
existing or future agreement between the City and the United States
concerning the operation or maintenance of the Airport, the execu-
tion of which has been or may be required as a condition precedent
to the expenditure of federal funds for the development of the Air-
port. Should the effect of such agreement with the United States
be to take any of the property under this lease or otherwise dimin-
ish the commercial value of this lease, the LESSOR shall not be
held liable therefor.
RIGHT OF INSPECTION
The LESSOR reserves the right to conduct inspections of the
leased premises and reserve center at all reasonable times to
ensure that fire, safety and sanitation regulations and other pro-
visions contained in this lease are being adhered to by the LESSEE.
- 10 -
TAXES AND LICENSES
LESSEE shall pay all taxes of whatever character that may be
lawfully levied or charged upon the leased premises and reserve
center or LESSEE'S use of the same. LESSEE shall obtain and pay
for all licenses and permits necessary or required by law for the
construction or reconstruction of the reserve center, the instal-
lation of equipment and furnishings therein, and any other licenses
and permits necessary to operate or use the leased premises or
facility.
LAWS, ORDINANCES, RULES AND REGULATIONS
In its use of the leased premises and reserve center, LESSEE
shall comply with all applicable laws of the United States of
America and the State of Texas, the rules and regulations promul-
gated by their authority pertaining to aviation and air navigation,
and all reasonable and applicable rules, regulations and ordinances
of the LESSOR now in force or hereafter prescribed or promulgated
by authority or by law.
SECURED AREAS
LESSEE agrees to prevent unauthorized persons from entering
any secured areas at the Airport through any means of ingress which
LESSEE controls as a result of execution of this lease, and LESSEE
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 with this paragraph, or any other applicable federal, state
or local statutes, ordinances, rules and regulations affecting the
use, occupancy or operation of any such secured area, LESSEE shall
immediately reimburse the LESSOR the full amount of the penalty or
fine and correct the act or omission leading to, causing or con-
tributing to the violation.
OWNERSHIP
Nothing in this lease shall be construed or interpreted in any
manner whatsoever as limiting, relinquishing or waiving any rights
or ownership enjoyed by the LESSOR in the Airport property, or in
any manner waiving or limiting the LESSOR'S control over the opera-
tion, maintenance, improvement or alteration of Airport property,
or in derogation of such governmental rights as the LESSOR pos-
sesses, except as specifically provided for herein.
LIENS PROHIBITED
The LESSEE shall not bind or attempt to bind the LESSOR for
the payment of any money in connection with construction, recon-
struction, repairs, alterations or additions on the leased
premises, and LESSEE shall not permit any mechanic's, materialman's
or contractor's liens to arise against the premises or improvements
thereon, or any equipment, machinery and fixtures thereon belonging
to the LESSOR, and LESSEE expressly agrees that it will keep and
- 12 -
save the premises and the LESSOR harmless from all costs and dam-
ages resulting from any liens of any character created or that may
be asserted through any act or thing done by the LESSEE.
In the event any mechanic's lien or other lien or order for
payment shall be filed against the leased premises or improvements
thereon, or against property of the LESSOR located thereon during
the initial term hereof, or during any subsequent extension, LESSEE
shall within ten (10) days cause the same to be cancelled and dis-
charged of record by bond or otherwise, at the election and expense
of LESSEE, and shall also defend on behalf of the LESSOR, at
LESSEE'S sole cost and expense, any action, suit or proceeding
which may be brought thereon or for the enforcement of such lien or
order. Failure of the LESSEE to comply with any requirement of
this section shall be cause for immediate termination of this
agreement by the LESSOR.
NON-DISCRIMINATION PRACTICES
LESSEE, its officers, agents and employees will not discrimi-
nate against any person or class of persons by reason of age, sex,
race, religion or national origin in providing any services or in
the use of any of its facilities provided for the public. LESSEE
further agrees to comply with such enforcement procedures as the
United States Government might demand that the LESSOR take in order
to comply with the Sponsor's Assurances.
- 13 -
LESSEE further agrees not to discriminate against any employee
or applicant for employment because of age, sex, race, religion or
national origin. LESSEE agrees to take affirmative action to
ensure that applicants are employed and that employees are treated
during employment without regard to their age, sex, race, religion
or national origin. Such action shall include, but not be limited
to employment, upgrading, demotion, transfer, recruitment, layoff,
rates of pay or other forms of compensation, and selection for
training, including apprenticeship.
CANCELLATION
This lease shall be subject to cancellation by either party
hereto upon the default of the other party in the performance of
any covenant or condition herein required to be performed by such
other party and the failure of such other party to remedy the
default for a period of thirty (30) days after receipt of written
notice to remedy the same.
The failure by either party hereto to declare this lease
cancelled upon the default of the other party shall not be con-
strued as a waiver of any of the non -defaulting party's rights
hereunder or otherwise bar or preclude such non -defaulting party
from declaring this lease cancelled as a result of any subsequent
violation of any of the covenants or conditions contained in this
lease.
- 14 -
ADDITIONAL_ RIGHTS RESERVED
In addition to any other rights herein retained, the Lessor
specifically reserves the following rights and privileges:
(A) The right to further develop or improve the landing area
and other portions of the Airport as the LESSOR deems
necessary.
(B) The right to take any action the LESSOR considers neces-
sary to protect the aerial approaches of the Airport
against obstruction, together with the right to prevent
LESSEE from constructing or permitting the construction
of any building or other structure on the Airport which,
in the opinion of the LESSOR, would limit the usefulness
of the Airport or constitute a hazard to aircraft.
(C) The right during time of war or national emergency to
lease the Airport or any part thereof to the United
States Government for military use. In the event any
such lease is executed, the rights and privileges granted
LESSEE in this instrument, insofar as they are inconsis-
tent with the rights and privileges granted to the United
States Government, shall be suspended.
SUCCESSORS AND ASSIGNS
This lease shall bind and inure to the benefit of any succes-
sors and assigns of the parties hereto.
- 15 -
NOTICES
Notices to the LESSOR required or appropriate under this
agreement shall be deemed sufficient if in writing and mailed,
registered or certified mail, postage prepaid, addressed to the
Director of Aviation, Lubbock International Airport, Route 3, Box
389, Lubbock, Texas 79401. Notices to the LESSEE shall be deemed
sufficient if in writing and mailed, registered or certified mail,
postage prepaid, addressed to the LESSEE at the address for LESSEE
on file with LESSOR'S Director of Aviation.
ENTIRE AGREEMENT
This lease constitutes the entire agreement between the
r i hereto
CIT' L BBOCK, XAS TEXAS NATIONAL GUARD ARMORY
BOARD
U
B
DAVID R. LA149STON, WOR
ATTE
Ranette B yd, City Secretar
% e
BY • ` IJP,
WILLIAM E. BEATY, EXECUTIVE DI ECTOR
ATTEST:
.\. C. OA
JOHN C. HILLE, DEPUTY DIRECTOR
7�P ROVED AS TO CONTENT:
Bern Case, Director of Aviation
APPROVED AS TO FORM:
9:: 1� a I L-4��
arold Willard, Assi tant City
Attorney
- 16 -
THE STATE OF TEXAS §
COUNTY OF LUBBOCK §
BEFORE ME, a Notary Public, on this day personally appeared
William E. Beaty , known to me to be the person whose
name is subscribed to the foregoing instrument and acknowledged to
me that he executed the same for the purposes and consideration
therein expressed and as the act and deed of the Texas National
Guard Armory Board.
Notary Public in and for
the State of Texas
THE STATE OF TEXAS §
COUNTY OF LUBBOCK §
BEFORE ME, a Notary Public, on this day personally appeared
DAVID R. LANGSTON, Mayor of the City of Lubbock, Texas, known to me
to be the person whose name is subscribed to the foregoing instru-
ment and acknowledged to me that he executed the same for the
purposes and consideration therein expressed, and in the capacity
herein stated, and as the act and deed of said City.
OLIVIA R. SOLIS
NO1MyY m Stats of Texas
My V��?�tX-G✓
Commission Exp�re�
NOVEMBER 30, 1993 ` Notary Public in and for
`//:�llll•CiOrlJy+"ri�r'�••d� the State of Texas
HW:js/LSE-TNGA.DOC/D2-Airport
- 17 -
EXHIBIT A
1. COMPONENT
FY 1993 =I RD AND RESERVE
2. DATE
AW -J, USAR., NAVY, UaMC
MILITARY Cl)1SMUC1'ION
I 10 DEC 1991
I
3. INS A LT-ATION AND LOCATIC$d
4 . PYEk CO:JSFR I
CJST INDEX
LU3BOCt: , TixkS
I
5. FREQUD-iOt AND . -PE OF UTIL.T_ZATIUN'
NOR4hL Aa-al;I-IRATION 5 DAYS PER WEEK WITH FUDR 2 -DAY TRJI,ING ASSII�: 1FS I'E:
MOS Tii .
,
r.y�'I1rE/GUARD/RE.SEMT I?;SI'I�L.�.TIO:dS WITHIN 25 hiIL? }ul �U5
USkR LUBB--Cx ( 4 MJ LES) HOSPITAL 45,136 SF
ARNG LLTV=,rilTD (25 ItULES) ARIDRY 11,379 SF
USAF LUBDOC Y ( 8 lell FS) RMSE AFB N/A
7. PF CJ=I S REQ'JE= IN THIS PFS
CATEGORY NST
DESSIG:'J STA'TE'S
CODE p$CI= TITLE SNPE 5000
STP ~7 CO? LDL,.FTE
UNITED STATES MIED
i71 FORCES RESERVE CE?TI� 2c 1091602 SF
LTSMC 1,111
NAV' 1,098
USAR 4,475
7JG 1,252
8. STATE RESERVE FORCES FACMITIES BOARD REaXfMQkTlUN
FACILITIES IDENTIFIED IN ITai 6 HAVE BEEN ECA�rID BY TrLE STATE
JOINT SEMTIC�:. RF'SFMrE Nr1PONENT FACIE. S BBDARD FOR POSSIBLE JOINT
14 NW 91
USE/EX-ANSION. THE BOARD RECX]IjeZNTDATIONS P.RE JOli,'T CONSIRU.:1'IO,�.
_
(DATE)
9. LAND AQUISITION RE7 IRED
NONE
(N'U.3--ER OF A..F.._S)
10. Pr' WD71'S PI ANNED IN I= FOUR YEARS
FY 93 ORGANIZATIONAL MAINNTITNANCE SHOP $ 6961000.00
"A site survey has been ecupleted arra the site is suitable fOr 00nstruction of the
prOj-.Osed prroje.,7t at the estimated cost indicated.
i
EXHIBIT B
Legal Description for Two Tracts of Land Located in Section
10, Block A, Lubbock County, Texas.
TRACT I
Beginning at a point which is North 160.00 feet and east
690.00 feet from the SW corner of the NW14 of Section 10,
Block A;
Thence East a distance of 670.00 feet to a point; point
being the Southeast corner of this tract;
Thence North a distance of 1,225.00 feet to a point, point
being the Northeast corner of this tract;
Thence West a distance of 670.00 feet to a point, point
being the Northwest corner of this tract;
Thence South a distance of 1,225.00 feet to the point of
beginning (contains approximately 18.84 acres)
TRACT II
Beginning at a point which is North 910.00 feet and East
630.00 feet from the SW corner of the NW14 of Section 10,
Block A;
Thence West a distance of 360.00 feet to a point, point
being the Southwest corner of this tract;
Thence North a distance of 750.00 feet to a point, point
being the Northwest corner of this tract;
Thence East a distance of 360.00 feet to a point, point
being the Northeast corner of this tract;
Thence South A distance of 750.00 feet to the point of
beginning.
(contains approximately 6.198) acres
EXHIBIT C