HomeMy WebLinkAboutResolution - 3855 - Lease Agreement - FAA - FAA Hanger, West Airport District - 04/09/1992Resolution No. 3855
April 9, 1992
Item 422
RESOLUTION
WHEREAS, on or about September 26, 1991, the City of Lubbock and the
United States of America, Department of Transportation, Federal Aviation
Administration (FAA) entered into Lease No. DTFA07-91-L-01216, wherein the
City agreed to lease to the FAA 40,000 square feet of hangar space at the
Lubbock International Airport (Airport); and
WHEREAS, on or about September 27, 1991, the City of Lubbock, as
Lessor, and G. Greenstreet, Inc., as Lessee, entered into a Lease and
Sublease Agreement in which the City leased Airport premises to the Lessee
on which to construct a 40,000 square foot hangar; and
WHEREAS, Lessee agreed to construct said hangar at the Airport in
accordance with the requirements set forth in Lease No. DTFA07-91-L-01216;
and
WHEREAS, Lessee further agreed that upon completing construction of
the hangar, Lessee would sublease that facility and the demised premises
back to the City for use by the City in accomplishing its economic
development goals; and
WHEREAS, both the City and FAA subsequently executed Supplemental
Agreement No. 1 to Lease No. DTFA07-91-L-01216 and the City and G.
Greenstreet, Inc. executed Amendment No. 1 to the above -referenced Lease and
Sublease Agreement; and
WHEREAS, both the City and FAA now desire to execute Supplemental
Agreement No. 2 to Lease No. DTFA07-91-L-01216, which would necessitate
amending further the Lease and Sublease Agreement the City entered into with
G. Greenstreet, Inc. as well; and
WHEREAS, all of the parties who now have an interest in the above such
Lease and Sublease Agreement as a result of an Assignment or Transfer, for
good and valuable consideration, have agreed to amend such Lease and
Sublease Agreement in the manner necessitated by Supplemental Agreement No.
2; and
WHEREAS, amending the Lease and Sublease Agreement contemporaneously
with the City's execution of Supplemental Agreement No. 2 to Lease No.
DTFA07-91-L-01216 is also in the best interest of the citizens of the City
of Lubbock; NOW THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock is hereby authorized and
directed to execute for and on behalf of the City of Lubbock, Texas,
Supplemental Agreement No. 2 to Lease No. DTFA07-91-L-01216 between the City
and the United States of America, Department of Transportation, Federal
Aviation Administration, and Amendment No. 2 to the Lease and Sublease
Agreement entered into by the City and G. Greenstreet, Inc., which
Supplemental Agreement and which Amendment are both attached hereto, and
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 9th day of
e uoyo, uity secretary
APPROMED AS TO CONTENT:
rn L. Lase, Uirector of Aviation
APPROVED AS TO FORM:
Harold Willard, Assistant City
Attorney
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agenda-D#1/A-GSAm#2.Res
- 2 -
April , 1992.
e
. C.
McMIN14, MAYOR
Resolution No. 3855
April 9, 1992
Item 422
DEPARTMENT OF TRANSPORTATION
FEDERAL AVIATION ADMINISTRATION
800 Independence Ave, SW
Washington, DC 20591
Supplemental Agreement No. 2 to
Page 1 of 4 Lease Agreement No. DTFA07-91-L-01216
SUPPLEMENTAL AGREEMENT NO. 2, made and entered on this the 9th day of
April , 19 92 , by and between the City of Lubbock, Texas,
hereinafter referred to as the Lessor, and the UNITED STATES OF AMERICA,
Department of Transportation, Federal Aviation Administration, hereinafter
referred to as the Government.
WITNESSETH:
WHEREAS, by Lease Agreement No. DTFA07-91-L-01216 dated September 26, 1991,
the Government leased from the Lessor 40,000 square feet of hangar space at
the Lubbock International Airport, Texas; and,
WHEREAS, by Supplemental Agreement No.l to Lease Agreement No. DTFA07-91-L-
01216 dated February 13, 1992 the Government agreed to adjust the monthly
rental payment amount in exchange for additional paving being provided by the
Lessor in front of the hangar facility, and;
WHEREAS, the Government has, as of March 1, 1992, accepted the leased premises
and has further agreed to make, in addition to the normal monthly rental
payments, a one-time payment in the amount of $966.00 for additional work
accomplished by the Lessor at the Government's request, and;
NOW THEREFORE, the parties hereto agree to modify Lease No. DTFA07-91-L-01216
as follows:
1. Article 2 is deleted and the following Articles 2 is
substituted in lieu thereof.
2. To have and to hold said premises with their
appurtenances for the term beginning March 1, 1992
through February 28, 1993 subject to the termination
and renewal rights as may be hereinafter set forth.
Page 2 of 4
Supplemental Agreement No. 2 to
Lease No. DTFA07-91-L-01216
2. Article 3 is expanded to include two additional sentences.
3. The Government shall pay the lessor the annual rent of
$132,165.00 at the rate of $11,013.75 per month in
arrears for the term set forth in Article 2 above. All
rent shall be prorated based on actual occupancy of the
leased premises. Rent checks shall be made payable to the
lessor at the address shown elsewhere in this agreement.
In addition to the monthly rental payment described above,
the Government agrees to make a one-time payment totalling
$966.00 for additional work requested by the Government
and accomplished by the Lessor. This one-time payment is
to be made by the Government as soon as possible after the
execution of this supplemental agreement and is to be made
in additional to any monthly rental that may be due.
3. Article 5 is deleted and the following Article 5 is substituted in
lieu thereof.
5. This lease may be renewed at the option of the
Government from year to year at an annual rate of
$118,800.00 and otherwise upon the terms and conditions
herein specified. The Government's option shall be deemed
exercised and the lease renewed each year for one year
unless the Government gives 30 day notice that it
will not exercise its option, before this or any renewal
thereof expires; PROVIDED, that no renewal thereof shall
extend the period of occupancy beyond the 28 day of
February, 1997 ; AND PROVIDED FURTHER, that adequate
appropriations are available for the payment of rentals.
Notwithstanding any other provision of this lease
agreement the Government reserved the right to terminate
this lease at any time after February 28, 1993, upon 30
days written notice to the Lessor.
4. Article 7 is deleted and the following Article 7 is substituted
in lieu thereof.
7. The Lessor agrees to make monthly rental payments for
all utility useage associated with the leased premises.
Every three (3) months the Lessor will submit an itemized
invoice of all utilities paid with copies of actual
utility bills for the leased space to the Contracting
Officer's representative identified below:
Page 3 of 4
Mr. James Campbell
FAA ARTCC/NEOF
299 Woolsey Road
Hampton, GA 30228
Supplemental Agreement No. 2 to
Lease No. DTFA07-91-L-01216
The Contracting Officer's representative will review each quarterly
utility invoice submitted by the Lessor and promptly process payment
of the consolidated utility bill to the Lessor.
ALL OTHER TERMS AND CONDITIONS of Lease Agreement No. DTFA07-91-L-01216 are
hereby ratified and except as modified above shall be and remain the same.
IN WITNESS THEREOF, the parties hereto have hereunto subscribed their names as
of the date first written above.
LESSOR
c
(Sig ature)
B. C. McMinn
Mayor
(Title)
Approved as to Corte
Bern E. Case, A.A. .
Director of Aviation
Page 3
UNITED STATES OF AMERICA
(Signature)
Real Estate Contracting Officer
Approved as to Form:
Assistant City Attorney
Page 4 of 4 Supplemental Agreement No. 2 to
Lease No. DTFA07-91-L-01216
ACKNOWLEDGEMENT
I, , certify that I am the City Secretary
(Name of certifier) (Title of certifier)
of the entity named in the attached agreement. I also certify that
B. C. McMinn is the Mayor
(Name of signatory) (Title of signatory)
and is authorized to sign this agreement and bind said entity to the
terms and conditions of this agreement.
(Signature of cert
Ranet Boyd
City Sec tary
Resolution No. 3855
April 9, 1992
Item #22
AMENDMENT NO. 2
TO
LEASE AND SUBLEASE AGREEMENT
STATE OF TEXAS §
COUNTY OF LUBBOCK §
WHEREAS, the City of Lubbock, Texas, as Lessor, and G.
Greenstreet, Inc., as Lessee, entered into a Lease and Sublease
Agreement on September 27, 1991 in which the Lessor demised
property at Lubbock International Airport to the Lessee on which
to construct a 40,000 square foot hangar, and the Lessee agreed
to sublease the premises and hangar facility after construction
to the City for use in accomplishing the municipality's economic
development goals; and
WHEREAS, both the Lessor and the Lessee, for good and
valuable consideration, subsequently executed Amendment No. 1 to
the above referenced Lease and Sublease Agreement
contemporaneously with the execution by the Lessor and the United
States of America, Department of Transportation, Federal Aviation
Administration (FAA) of Supplemental Agreement No. 1 to Lease No.
DTFA07-91-L-01216; and
WHEREAS, on or about March 18, 1992, G. Greenstreet, Inc.
assigned its leasehold interest in the above -referenced Lease and
Sublease Agreement, and amendments thereto, to Gary Greenstreet,
Tom Brown, Don Denton and David Wood, as Assignees; and
WHEREAS, contemporaneous with the assignment of the Lease
and Sublease Agreement, and amendments thereto, the Assignees
transferred to the Lubbock National Bank (Transferee) all rights
to receive payments for rentals due from the Lessor under such
Lease and Sublease Agreements, and amendments thereto; and
WHEREAS, the Lessor, Assignees and Transferee, for good and
valuable consideration, have all agreed to further amend the
above -referenced Lease and Sublease Agreement to reflect
additional work requested by the FAA in Supplemental Agreement
No. 2 to Lease No. DTFA07-91-L-01216, attached hereto and made a
part of this Amendment; NOW THEREFORE:
The above -referenced Lease and Sublease Agreement is hereby
amended by amending Subparagraph b of numbered paragraph 1 of
Section II as follows:
The City does hereby agree to pay to Lessee as
consideration for the sublease of these premises a lump sum
of $13,365.00 payable upon acceptance of the hangar facility
by the United States of America, plus a lump sum of $270.00
payable upon receipt by the City of the one-time payment of
$966.00 referred to in Supplemental Agreement No. 2 to Lease
Agreement No. DTFA07-91-L-01216 between the City and the
Federal Aviation Administration, plus monthly lease payments
of $8,600.00 per month with such payments being due from the
City to Lessee on the 1st day of each month during the
existence of the term of this sublease, with the
understanding, however, that the first such monthly lease
payment shall be prorated in the event that the date of
acceptance as mentioned in this subparagraph is less than
one full calendar month. In the event that City does not
make the payment due Lessee as required by this
subparagraph, then in such event Lessee shall make written
Amendment -W-2
Page 2
demand upon City allowing City fifteen (15) additional days
from receipt of Lessee's demand to make the appropriate
payment. In the event the City fails to make the payment
after notice, as above set forth, then Lessee may require
the payment from City of the total amount of lease payments
remaining due under this Sublease.
All other terms and conditions of the Lease and Sublease
Agreement between the City of Lubbock and G. Greenstreet, Inc.
are hereby ratified and except as above amended or as previously
amended shall be and remain the same.
AGREED TO AND ACCEPTED THIS 1� day of
1992.
Amendment 2
Page 3
7606 University Avenue
Lubbock, Texas 79423
TRANSFEREE:
Lubbo ^ Nationail ,Bank
gavid Hat -mon, Senior Vice Pres.
Post Office Box 6100
Lubbock, Texas 79493
LESSOR:
City of Lubbock, Texas
By •
B. C. MCMI N, MAYOR
e Boyd, City Secreta
TO CONTENT:
rn Case, Director of Avia
APPROVED AS TO FORM:
lk� t�/4�
gat -old Willard, Assistant City
Attorney
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Amendment 2
Page 4