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HomeMy WebLinkAboutResolution - 3675 - Lease Agreement - Executive Hangars Of Lubbock Inc - 41,924 Sq Ft, LIA - 08/08/1991HW:da RESOLUTION Resolution No. 3575 August 8, 1991 Item #25 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 between the City of Lubbock, Texas, and Executive Hangars of Lubbock, Inc., 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 8th ATTEST: anet(te uoya, city Secreta APPROVED AS TO CONTENT: ern E. Case, Director of Aviation APPROVED AS TO FORM: .994ea W24.'t'o Harold Willard, Assistant City Attorney day of August , 1991. B. C. McMINN, MAYOR HW: da Resolution No. 3675 August 8, 1991 Item #25 LEASE AGREEMENT THIS LEASE AGREEMENT is made and entered into this 8th day of August , 1991, between the CITY OF LUBBOCK, TEXAS, a home rule municipality, (hereinafter referred to as "Lessor") and EXECUTIVE HANGARS OF LUBBOCK, INC., a corporation incorpo- rated under the laws of the State of Texas, with its principal office in Lubbock, Texas, (hereinafter referred to as "Lessee") the terms of the agreement being as follows: WITNESSETH: WHEREAS, Lessor owns and operates the Lubbock International Airport located in Lubbock County, Texas, (hereinafter referred to as the "Airport"); and WHEREAS, Lessor deems it advantageous to itself and to its operation of the Airport to lease unto Lessee the parcel of land described herein together with certain privileges, rights, uses and interests therein, as hereinafter set out; and WHEREAS, Lessee is a corporation primarily engaged in hangar storage of aircraft; and WHEREAS, Lessee proposes to lease on a net basis from Lessor certain ground area and to avail itself of certain privileges, rights and uses pertaining thereto; and WHEREAS, Lessee has indicated a willingness and ability to properly keep, maintain and improve said ground area in accor- dance with the standards established by Lessor: NOW THEREFORE, for and in consideration of the terms, condi- tions and covenants of this lease to be performed by Lessee, all of which Lessee accepts, Lessor does hereby lease and let unto Lessee certain property (hereinafter called "Leased Premises"), and certain attendant privileges, uses and rights, as herein specifically set out. ARTICLE 1 PREMISES AND PRIVILEGES A. Description of Leased Premises. A tract of land out of Section 28, Block A, Lubbock County, Texas, containing .96 acres of land more or less, and being more particularly described Exhibit "A" attached hereto. B. Purpose. The purpose for which Lessee may use the Leased Premises described in paragraph A above is as follows: Lessee may engage in the business of hangar stor- age of aircraft and equipment owned only by or under the control of the shareholders of Lessee. - 2 - ARTICLE 2 TERM A. Term. The term of this agreement shall commence on the 1st day of July, 1991, and end on the 30th day of June, 2405.,..�� 5 years. .90010' '�.D 10 l�� ?iE% M � B. National Emergency. In the event the rights and privi- leges hereunder are suspended by reason of war or other national emergency, the term of this lease shall be extended by the amount of the period of such suspension. ARTICLE 3 RENTAL AND FEES A. Rental. Ground rental for the approximately 41,924 square feet of land area leased hereunder, as defined in Article 1, shall be calculated at the rate of $.0872 per square foot per year and shall be payable by the Lessee to the Lessor in equal monthly installments of THREE HUNDRED FOUR AND 65/100 ($304.65) DOLLARS on the first day of each month of each year that this lease is in effect. B. Ad1ustments. The Lessor and Lessee hereby agree that the above rental rate will be adjusted upward or downward this lease is in effect each year beginning September 25, 1991, in direct proportion to the fluctuation in the U.S. Department of Labor, Bureau of Labor Statistics Cost of Living Index (CPI), or such method of measure as may replace this CPI. For purpose of - 3 - computing all adjustments, the Bureau of Labor Statistics Cost of Living Index as of January 1, 1990, shall be construed as the base period. The amount of increase or decrease shall be deter- mined by the Index as it appears on September 1 of each year. C. Fees. Lessee hereby agrees that Lessee shall pay a late payment fee of five percent (5%) on each payment not paid within ten (10) days after the due date. ARTICLE 4 COVENANTS OF LESSEE A. Assignment. The Lessee shall not at any time assign, transfer, pledge, sublease or otherwise alienate this agreement without the prior written consent of the Director of Aviation of the Lessor. B. Aircraft Stored. Lessee agrees that at no time will any aircraft be stored on the Leased Premises except that owned and/or operated by or under the control of the undersigned or its shareholders. C. Taxes. Lessee agrees to promptly pay when due all taxes and assessments levied on the Leased Premises and any other lawful taxes or assessments by any governmental agency which may be levied in connection with the Lessee's business, and will promptly pay when due all charges for water, electricity and other utilities used in connection with said Leased Premises. - 4 - D. Non -Discrimination. 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. Lessee agrees not to discriminate against any employee or applicant for employment because of race, color, sex, 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 race, color, sex, 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. E. Development of Airport. Lessee agrees that Lessor has the right to further develop and improve the Airport as the Lessor sees fit regardless of the desires of or use by Lessee, and without interference or hindrance therefrom. F. Security. Lessee agrees to control all access to the air operations area (AOA) through the Leased Premises and through gates assigned to or controlled in whole or in part by Lessee so as to prevent unauthorized entry to the AOA by persons, animals or vehicles. In the event that unauthorized access to the AOA is gained through the Leased Premises or any area which Lessee con- - 5 - trols or is obligated to control either by itself or jointly with other Airport lessees, any fines or penalties assessed by the Federal Aviation Administration shall be the responsibility of the Lessee and Lessee hereby agrees to pay such fines or penal- ties without delay and make any and all requested changes in its operations or facilities necessary to maintain Airport security and prevent reoccurrence of any unauthorized entry. G. Operation of Aircraft. Lessee agrees that it will op+erate aircraft stored on the Leased Premises at all times in compliance with all applicable federal, state and local rules and regulations and comply with all present and future applicable statutes, ordinances, rules and regulations affecting the use or operation of the Leased Premises and Airport. H. Inspection of Books. Lessee shall maintain complete books and records of all transactions, sales and income resulting from its operations at Lubbock International Airport, which books and records may be inspected at any time by the Lessor or its authorized representatives at Lubbock, Texas, upon reasonable notice to Lessee. In the event Lessee requests such inspection to be performed outside the Lubbock area, such request may be honored at the Lessor's discretion; however, any and all expenses incurred by so doing shall be reimbursed by the Lessee. :d I. Condition of Premises. Lessee, shall at its own cost and expense, maintain the Leased Premises and the buildings, im- provements and appurtenances thereto, in a presentable condition consistent with good business practice and equal in appearance and character to other similar improvements on said Airport. Lessee shall repair all damages to said Leased Premises, shall maintain and repair all equipment thereon, including any drainage installations, paving, curbs, buildings and improvements; and shall repaint its own buildings and improvements as necessary. Lessor shall be the sole judge of the quality of the mainte- nance and upon written notice by Lessor to Lessee, Lessee shall be required to perform whatever maintenance Lessor deems neces- sary. If said maintenance is not undertaken by Lessee within ten days after receipt of written notice, Lessor shall have the right to enter upon the Leased Premises and perform the necessary main- tenance, the cost of which shall be borne by Lessee, and such cost shall be secured by a lien upon any improvements placed upon said Leased Premises by Lessee. J. Hazardous Materials. Storage of hazardous materials shall not be permitted on the Leased Premises except for those quantities of motor oil and other similar materials used in the normal preflight servicing and preparation of aircraft. Disposal of hazardous materials and waste including, but not limited to, used motor oil, solvents, paint and aviation fuel shall not be - 7 - permitted on the Leased Premises. All hazardous materials must be disposed of off Airport premises in accordance with applicable laws and regulations. K. Utilities. Lessee shall have the right to connect to any and all storm and sanitary sewers and water and utility out- lets, including metering devices, at its own cost and expense; and Lessee shall pay for any and all service charges incurred therefore. L. Trash, Garbage, Refuse, Etc. Lessee shall provide a complete and proper arrangement for the adequate sanitary hauling and disposal, off of Airport premises, of all trash, garbage and other refuse resulting from the use of the Leased Premises. M. Signs. Lessee may not erect or cause to be erected on the Leased Premises any billboards or advertising signs without the prior written consent of the Director of Aviation of the Lessor. N. Hold Harmless. Lessee agrees to hold the Lessor free and harmless from loss from each and every claim and demand of any nature made on behalf of or by any person or persons result- ing from Lessee's operations and/or use of the Leased Premises by the Lessee, its agents, servants and employees, and from all losses and damages by a reason of negligence of the Lessee, its agents, servants and employees. moi= O. Use of Airport. During the term of this lease, Lessee shall have the free and non-exclusive use in common with others at the Airport of runways, ramps, parking areas and any and all public facilities available at the Airport and the right of ingress to and egress from the above described premises, which right shall extend to Lessee's employees, stockholders and invi- tees. If during the term of this agreement, the use of the Airport by Lessee is temporarily suspended, restricted or interfered with for a period of ten (10) days or more for reasons beyond the practical control of the Lessor and in such a manner as to sub- stantially affect the use of the Leased Premises or operation of aircraft by Lessee, all rents during such a period shall abate and the term of the agreement shall, at the election of Lessee, be extended for an equivalent period of time. P. Improvements. Lessee shall not make, permit or suffer any improvements, additions or alterations to the Leased Premises which constitute any major structural change or changes without prior written consent of the Director of Aviation of the Lessor. Lessee agrees to hold the Lessor harmless from any mechanic's and materialmen's liens arising from any construction, additions, improvements, repairs or alterations effected by the Lessee. Q. Parking. Lessee shall, at its sole cost and expense, construct adequate and suitable pavement areas for use by its members for parking of aircraft and automobile parking for its employees, guests and invitees. R. Vehicular Movement. Lessee will not permit the driving of vehicles by its employees, guests or invitees on the apron, taxiways or runways, except for approved ingress and egress to the Leased Premises. S. Lessee shall not engage in any type of commercial en- terprise such as the sale of fuels, lubricants, aircraft parts or charter services. T. It is understood and agreed that no rights are granted herein except those specifically stated. ARTICLE 5 OBLIGATIONS AND RIGHTS OF LESSOR A. Safety. 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 said leased premises which, in the opinion of the Director of Aviation of the Lessor, would limit the use- fulness of the Airport or constitute a hazard to aircraft. - 10 - B. Maintenance of Public Area. Lessor reserves the right, but shall not be obligated, to maintain and repair the landing area of the Airport and all publicly owned facilities of the Air- port, together with the right to direct and control all activities of Lessee in this regard. C. Standards. Lessor reserves the right to establish standards for the construction, maintenance, alterations, re- pairs, additions and improvements to Lessee's facilities. This will include structural design, color, material used, landscaping and maintenance of Lessee's facilities and the Leased Premises. ARTICLE 6 DETERMINATION A. Termination by Lessee. This Agreement shall be subject to cancellation by Lessee without liability to the Lessor upon the occurrence of any one or more of the following contingencies: 1. The permanent abandonment of the Airport as an air terminal. 2. The issuance by any court of competent jurisdiction of an injunction in any way preventing or restraining the use of the Airport, if such injunction remains in effect for at least thirty (30) days. 3. 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 sixty (60) days after writ- ten notice from the Lessee addressed to the Director of Aviation of the Lessor. 4. The assumption by the United States Government, or any authorized agency of the same, of the operation, con- trol or use of the Airport and its facilities in such a manner as to substantially restrict the Lessee from operating said facilities, if such restriction contin- ues for a period of more than three (3) months. B. Termination by Lessor. This Agreement shall be subject to cancellation by the Lessor without liability to the Lessee upon the occurrence of any one or more of the following contin- gencies: 1. If the Lessee shall file a voluntary petition of bankruptcy; or, if proceedings in bankruptcy shall be instituted against Lessee and it is thereafter adjudi- cated as bankrupt pursuant to such proceedings; or if a court shall take jurisdiction of Lessee and its assets pursuant to proceedings brought under the provisions of any federal reorganization act; or if a receiver for Lessee's assets is appointed; or if Lessee shall be divested of its rights, powers and privileges under this agreement by other operation of law. 2. If the Lessee shall abandon the Leased Premises. - 12 - 3. If the Lessee shall default in or fail to make any pay- ments at the time and in the amounts required of Lessee under this agreement. 4. If the 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. 5. If the Lessee shall fail to abide by all applicable laws, ordinances, rules and regulations enacted or pro- mulgated by the United States or any agency thereof, the State of Texas, City of Lubbock or Director of Aviation of the City of Lubbock. Lessor, acting by and through its Director of Aviation, shall give written notice to Lessee to correct or cure any de- fault, failure to perform or breach of covenant or conditions within fifteen (15) days from the date of such notice: and if the default, failure to perform or breach complained of shall not have been corrected within such time in a manner satisfactory to the Lessor, then, and in such event, Lessor shall have the right, at once and without further notice to Lessee, to declare this agreement terminated and to enter upon and take full possession of the Leased Premises. Provided, further, that in the event that defaults, failure to perform and breaches by Lessee of its obligations under this agreement to be performed, kept and observed by Lessee shall re- - 13 - cur from time to time, Lessor may terminate this agreement. In such event, the Lessor shall give written notice of such termina- tion to Lessee and the agreement shall terminate within ten (10) days from the date of said notice. The acceptance of rentals and fees by the Lessor for any period or periods after a default of any of the terms, covenants and conditions herein contained to be performed, kept and observed by Lessee shall not be deemed a waiver of any rights on the part of the Lessor to cancel this agreement for failure by Lessee to so perform, keep or observe any of the terms, covenants or conditions hereof to be performed, kept and observed by Lessee. No waiver by the Lessor, its offi- cers, agents or employees of any of the terms of this agreement to be kept, performed and observed by the Lessee shall be con- strued to be or act as a waiver by the Lessor of any subsequent default on the part of the Lessee. C. Ownership. Within thirty (30) days after expiration of this agreement, or upon earlier termination, as herein provided, the Lessee shall remove all improvements constructed or placed on the Leased Premises, such as buildings, equipment, goods, chat- tels and fixtures belonging to Lessee, and to 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 require- - 14 - ments set forth in this paragraph, the Lessor may effect such removal and restore such property at Lessee's expense. Lessee covenants and agrees to pay all reasonable costs, attorneys' fees and expenses that shall be incurred by the Lessor in enforcing the covenants and conditions of this agreement. In the event the Lessee fails to pay the expenses of removal and restoration within thirty (30) days, such property removed will be deemed abandoned and title will revert to the Lessor. However, this shall in no way relieve the Lessee of the debt incurred. In the event Lessor terminates this agreement for cause as contained herein, the Lessor shall retain ownership of Lessee's improvements to the extent of the rentals due from Lessee for the remainder of the term. D. Subordination Provision. This lease shall be sub- ordinate to the provisions of any existing or future agreement between the Lessor and the United States pertaining to the op- eration or maintenance of the Airport. ARTICLE 7 NOTICE Any required notice to the Lessor provided for herein shall be sufficient if sent by registered or certified mail, postage prepaid, to the Director of Aviation, Route 3, Box 201, Lubbock, Texas 79401, and any such notice to the Lessee shall be suffi- cient if sent in the same manner addressed to Executive Hangars - 15 - of Lubbock, Inc., 1708 15th Street, Lubbock, Texas 79401, or such other addresses as my be designated by the Lessor or Lessee in writing from time to time. IN WITNESS WHEREOF, the parties have executed this agreement this 8th day of August , 1991. ST: Ran tte Boyd, City Secre r APPROVED AS TO CONTENT: rn E. Case, Director of Aviation APPROVED AS TO FORM: arold Willard, Assistant City Attorney ATTEST: - 16 - THE CITY OF LUBBOCK 0& C BY: c .C. MOMIN , MAYOR EXECUTIVE HANGARS OF LUBBOCK, INC.