Loading...
HomeMy WebLinkAboutResolution - 3077 - Lease Agreement - Avis - Operations Space, LIA - 04/27/1989Resolution Nos. 3076-3079 April 27, 1989 Item #27 HW:da 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 Lease Agreements .with Auto Rent, Inc. (Avis), Currey Enterprises, Inc. (Budget), National Car Rental System, Inc. and The Hertz Corp. for rent -a -car services at Lubbock International Airport, 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 27th day of April 1989. a B.C. MCMINN, MAYOR qRanetrBoyd­,�-CitySecretary APPROVED AS TO CONTENT: Marlin Coffee, D' for o tion APPROVED AS TO FORM: Harold Willard, Assistant City Attorney THE STATE OF TEXAS § KNOW ALL MEN BY THESE PRESENTS: COUNTY OF LUBBOCK § LEASE AGREEMENT THIS AGREEMENT entered into by the City of Lubbock (referred to herein as CITY), a,Home Rule Municipality of Lubbock Cc-rnty, Texas, and Auto Rent, Inc. (referred to herein as LESSEE) of Avis Rent a Car Systems, Inc. WITNESSETH WHEREAS, CITY owns, controls and operates the Lubbc-ck International Airport (referred to herein as AIRPORT), situated at Route 3, Lubbock, Lubbock County, Texas, and possesses Zhe power and authority to grant certain rights an4 privileges with respect thereto, including those hereinafter set forth; and WHEREAS, automobile rental services at the AIRPORT are an integral part of the necessary accommodations for ground trans- portation provided for passengers arriving at and depa==--_ from the AIRPORT in the prP=otion and development of air co=erce and air transportation; and WHEREAS, LESSEE desires to make said automobile services available at the AIRPORT and is qualified and has -he capacity to perform said services and to equip said fac=i=es for use in connection therewith, and further desires to _ease certain space and obtain certain rights and privileges wil.' respect to the operation of a rent -a -car service at said =R OZ1' upon the terms and conditions hereinafter provided; NOW THEREFORE, for and in consideration of the mutual promises, covenants, terms and conditions, both general and special, as hereinafter set forth, CITY hereby grants to LESSEE the rights and privileges hereinafter described; LESSEE agrees to accept the duties, responsibilities and obligations as herein- after set forth, and the parties hereto, for themselves, their successors and assigns, agree as follows: ARTICLE ONE LEASE OF DESCRIBED PREMISES CITY, upon mutual execution of this agreement, does lease and demise to LESSEE upon the terms and conditions contained herein, the following prer.ises located at the AIRPORT: A. TERMINAL A desc-ription of this location is shown on "E,Ahi:bit A", which Exhibit is attached to this Lease Agreezent and incorporated herein. B. GROUND - A description of this location, if applicable, is shown on 'Exhibit B", which Exhibit is attached to this Lease agreement and incorporated herein. C. CLOSE -IN VEHICT.:E PAR= G AREAS - A description of these locations are sho-.m on "Exhibit CR, which Exhibit is attached to this Lease Agree.. e_*at and incorporated herein. ARTICLE TWO 3'ERH The initial tern of this lease shall begin on the 1st day of May, 1989, and terminate on the 30th day of April, 1992. Upon written application of LESSEE, delivered to the office of the Director of Aviation of CITY prior to the expiration of the initial tern of tl,.is lease, the Director of Aviation. Way -2- 11 4k extend this lease for a period of thirty (30) days upon the same terms and conditions contained herein. LESSEE may apply for as many thirty (30) day extensions of this lease as LESSEE deems necessary, which may or may not be granted by the Director of Aviation in his discretion. Any extension of this lease granted pursuant to this Article shall be in writing and signed by the LESSEE and the Director of Aviation. Notwithstanding any provision of this Article, this lease is subject to earlier termination as hereinafter provided under Article VII. ARTICLE THREE USE OF PREMISES The LESSEE is granted for the stated term and for no other purpose a non-exclusive privilege of conducting a transient automobile rental service from the leased premises. ARTICLE FOUR RENTALS, RECORDS AUDIT AND PLACE OF PAY2rNT A. RENTAL 1. Terminal: The LESSEE shall pay to the CITY as rental the following: Ten percent (10%) of LESSEE's annual gross revenue for each year during the term of this agreement that LESSEE conducts business operations at the AIRPORT, but not more than ten percent (10%) of ninety percent (90%) of the preceding year's gross revenue, plus nine percent (9%) of the remmaining ten percent (101) of such preceding year's gross revenue, and eight perce.t (8%) of all gross revenue in excess of such preceding year's -3- gross revenue. To illustrate, if LESSE'E'S gross revenue for the first year that this agreement is in effect is $600,000 and the preceding year's gross revenue was $500,000, rental would be calculated as follows: 10% of (90% of $500,000) = $45,000 9% of (10% of $500,600) _ $ 4,500 8% of ($600,000 - $500,000) _ $ 000 Total = $57,500 Notwithstanding the above language, in no event will the annual rental for this lease be less than forty thousand ($40,000) dollars. The above rental is payable month by month at a rate of ten percent (10%) of the preceding month's gross revenue, or nine percent (9%) of the preceding month's gross revenue when T-=-SST-'E's gross revenue for the year has exceeded ninety percent (90$) of the preceding yew's gross revenue, or eight percent (8t) of the preceding month's gross revenue when LESSEE's gross revenue for the year has exceeded the preceding year's total gross revenue. The monthly rental payments are due on or before the 20th day of each month and are to be accompanied by a verified statement showing the preceding month's gross revenue. For deteraining t4:e rental due the CITY, gross revenue shall include but not be limited to the following: (1) All revenues received as mileage charges for rental of automobiles, trucks or other vehicles. -4 (2) Charges for insurance policies sold customers, as ►•ell as any charges made to customers for insurance deductible waiver features. (3) Sales of fuel and oil. (4) All inter -city or drop fees. (5) All other revenues derived from business operations at the AIRPORT other than proceeds from the sale of cars used in such business operations and payments received from customers for damages to automobiles while rented or for emergency repairs made by the customers. 2. Ground lease (Service Facility): The LESSEE shall pay to the CITY rentals for a ground lease on an area to be used as a service facility and consisting of 32,940 square feet of exclusive lease area, as shown on Exhibit "B", at the rate of $.0809 per sa. ft. per month. 3. Close -in vehicle parking areas (Ready and Return Car Areas): For each month that this lease is in effect, the L= -SS' --7E shall pay to the CITY in advance the sum of SEVEN ($7.00) COLLARS per space per month for LESSEE's allocated parking spaces, as shown on Exhibit "C". Payment must be received by the CIT'; o: or before the 10th day of each and every month during the term of t.h s lease. 4. Counter area: LESSEE shall be provided space for a counter area as shown on Exhibit "A". B. LESSEE'S ABATE.MYM RIGHTS In the event that one or more of the following conditions exist during the teras hereof, the minimum annual guarantee: -5- rental hereinabove provided for shall be abated for the period of time the condition or conditions continue to exist: 1. If, for any reason, the number of passengers deplaning on scheduled airline flights at the AIRPORT during any period of thirty (30) or more consecutive days shall be lower than 85% of the number of such deplaning passengers for the same period of the immediately preceding contract year or of the year immediately preceding the first contract year. 2. If the operation of LESSEE'S car rental business at the AIRPORT through no fault of LESSEE is adversely affected by shortages or other disruptions in the supply of automobiles, gasoline or other goods necessary for the operation therefore, and there is a material d =Lnution in LESSEE'S gross revenues hereunder for a period of thirty (3 0) or more consecutive days attributable to such shortages or other disruptions. During the period of the abatement, LESSEE will continue to pay to the CITY the xonthly rentals which are based on gross revenues and the CITY will return to LESSEE a just proportion of any minimum annual guarantee payment which may have been prepaid. In the event any of the above conditions continue for a period in excess of six (6) months, LESSEE shall have the right to terminate this agreement. -6- C. HOST FAVORED NATIONS CLAUSE In the event that any contract granted by the CITY tc any other automobile rental concessionaire shall contain any terms more favorable to such concessionaire than the terms herein granted (other than counter location), then, at the option of LESSEE herein, this Agreement shall be amended to include such more favorable terms and any offsetting burdens that may he imposed on any such other concessionaire. The intent of this provision is to insure that LESSEE will be able to compete on terms as equal as possible with any additional concessionaire aiid to insure that no other concessionaire shall enjoy any rights, profits or other conditions more favorable to such concessionaire than those enjoyed by the LESSEE herein. D. RECORDS The LESSEE, following accepted accounting practices and procedures, will maintain true and accurate books, records and receipts which will show all of the gross revenue of all b-asiness transacted upon and within the AIRPORT. Within 30 days of the end of the initial term of this lease, and when otherwise necessary, LESSEE shall submit to the C --Ty a verified statement of its dross revenue for each year during the term of this lease in which Lessee conducted business operations at the AIRPORT. Such statement shall be certified by LESS= -'s financial officer and shall be accompanied by LESSEE's payment of any remaining sums due the City for such business operations.- Tn the event LESSEE's prior payments to the CITY exceed the amount- required mountrequired by this agreement, the CITY shall reimburse LESSEE with -7- an amount equal to the difference between the sum required and the sum paid. E. AUDIT All books, records and receipts of all business transacted upon and within the AIRPORT will be kept or maintained at the AIRPORT or other place acceptable to the CITY OF LUBBOCK'S auditor, and will be available for inspection and examination during regular office hours by the CITY OF LUBBOCK'S auditor or authorized representatives of the CITY. For the purposes of deterrining the accuracy, of the required statements of gross revenue, the CITY OF LUBBOCK'S auditor may authorize the marring of a spot test audit and base the findings for an entire period upon such audit, provided that the audit shall include at least twenty-five percent (25%) of the total time of the period audited. In addition, the CITY OF LiiBBOCK'S auditor shall have the right at any time during the term of this lease to authorize an audit of LESSEE's records pertaining to its business operations at the AIRPORT. Such audits shall be undertaken by a reputable firm of independent Certified Public Accountants satisfactory to the CITY. The cost of such audit shall be borne one-half by LESSEE and one-half by the CITY, unless results of the audit reveal a discrepancy of snore than five percent (5%) between gross revenue reported in accordance with Section B of this Article and gross revenue as deterr.i.ned by audit. In case of a discrepancy of more than five percent (5%) in favor of the LESSEE, the full cost of the audit shall be borne by the LESSEE. -8- F. PAYMENT All payments that become due and payable by the LESSEE shall be made to the CITY OF LUBBOCK at the Office of the Director of Aviation, Lubbock International Airport, Lubbock, Texas. G. BREACH Any action taken by the LESSEE to induce its patrons or patrons of other car rental concessionaires at the AIRPORT to rent or receive vehicles in such a manner and at such places so as to diminish the gross revenue of car rental concession= under this agreement shall constitute a material breach hereof a-nd a cause for the termination of this agreement by the CITY. ARTICLE FIV- OBLIG=ATIONS OF THE CITY A. CLEAR TITLE The CITY covenants and agrees that at and until the granting and delivery of this lease it is well seized of the leased premises and has good title, free and clear of all liens and encumbrances having priority over this lease; and that the CITY has full right and authority to lease the premises described in this contract. B. YJLINTENANCE OF AIRPORT The CITY covenants and agrees that it will during the period of this agreement operate and maintain the AIRPORT as a public facility consistent with and pursuant to the Assurances given by the CITY OF LUBBOCK to the United States Government under the Federal Airport Act. -9- C. CONDITIONS AND )MINTENANCE OF PREMISES The CITY shall assure no responsibility as to the condition of the leased premises and shall not assume responsibility for maintenance, upkeep or repair necessary to keep the presses in a safe and serviceable condition. The CITY shall maintain roads, which nay be relocated, cn the AIRPORT access to the leased premises in a good and adequate condition for use by cars and trucks. VMTICLE SIX OBLIGATIONS OF LESSEE A. NET LEASE This lease shall be without cost to the CITY for the development, maintenance and irprovement of the leased premises. It shall be the sole responsibility of the LESSEE to keep, =ai.ntain, repair and operate the entirety of the demised premises, and all improvements and facilities placed on the ?eased preniises shall be at LESSEE's sole cost and expense. B. PRIVILEGES AND CONDITIONS The CITY grants to the LESSEE the following general privileges, uses and rights, all of which are subject to the terns, conditions and covenants herein set forth and all off which shall be non-exclusive on the A_TRPORT: I. The general use of all co=on terminal facilities a-nd irproverents which are now or may hereafter be connected with or appurtenant to the terminal building only in such a wanner as ray be necessary or convenient to the conduct of LESSEE's busir_ess. 2. The right of ingress to and egress from the :eased premises over and across common or public roadways serving the AIRPORT for LESSEE, its agents, employees, patrons, invitees, suppliers of service and furnishers of materials, such right of ingress and egress being subject to such ordinances, rules and regulations now existing or subsequently promulgated. 3. The LESSEE is here granted the privilege of constructing improvements within the AIRPORT upon the :eased premises as follows: (1) Terminal: Concession Counter (2) Grounds: Vehicle service building and vehicle storage area The LESSEE shall have the right to and shall provide for the location, construction, alteration, extension and erect c- of new or existing improvements, maintenance and removal of iacr;ve- ments, in any lawful manner, upon the leased prenises, for the purpose of conducting an automobile rental service, prcvided that all plans and specifications for the construction, alteration, extension and erection of facilities and inprove-ments, i-ncluding landscaping, shall be in compliance with all laws, policies and ordinances of the CITY OF LUBBOCK and shall require the written approval of the Director of Aviation before any const_r.rt+o: or installation may be undertaken. 4. The right to sell used rental vehicles with the following restrictions: (1) Only those vehicles used at the ATRPORI nay he sold there. All signs used in connection wit—the sale -11- of such vehicles shall be approved by the Director of Aviation. (2) The sale of such vehicles on AIRPORT premises shall be restricted to LESSEE's vehicle service area as shown in Exhibit C. MAINTENANCE 1. The LESSEE shall, at its own expense, provide jani- torial and custodial services for all its leased premises. 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. 2. The LESSEE accepts the leased premises in their present condition and shall, at its sole cost and expense, maintain the leased premises, grounds, fences, buildineas, improvements and appurtenances at all times in a clean and presentable condition free of trash, debris and weeds and consistent with good business practice and equal in appearance and character to similar improvements in the terminal building and parking and service area. The LESSEE shall repair all damage to the leased premises and CITY -owned property caused by its e=ployees, patrons or its operations upon the AIRPORT. The CITY shall be the sole judge of the quality of maintenance, and upon written notice from the Director of Aviation, the LESSEE shall be required to perform such maintenance as the CITY deems necessary. Failure by LESS=-- to ESS-to comply within thirty (30) days followL-ag receipt of such written notice from the Director of Aviation shall give the CITY the right to enter upon the leased premises and perform the -12- necessary maintenance, the cost of which shall be borne by the LESSEE. D. PROPERTY PERMANENTLY AFFIXED TO PREMISES Any property belonging to LESSEE which becomes permanently attached to the premises shall becozme'the property of the CITY upon termination of this agreement, whether upon expiration of the initial term, any extension thereof, or earlier under any provision of this lease agreement, except the following named improvements shall be treated in the manner described: 1. Paving, fencing, fuel storage tanks and fuel lines shall be amortized over a period of ten (10) years. In the even= that the LESSEE herein is succeeded by another operator at the end of the initial term of this lease,,or any extension thereof, the new operator shall purchase the above named improvements fro= the LESSEE by paying LESSEE the value of the remaining unamortized portion; otherwise, such improvements shall become the property of the CITY. 2. Service buildings constructed by LESSEE reraLn the property of LESSEE. However, in the event LESSEE is succeeded by another operator at the end of the initial term of this lease, or any extension thereof, the new operator and LESSEE shc•.:=ci negotiate for the purchase of such service buildings. :f the two parties are unable to agree on the purchase price, each party shall designate an appraiser who shall appraise the buildings along with a third appraiser according to their fair x.— ket value. The average of the three appraisals shall be binding as the agreed price of the property. If for some reason the =-SSEE -13- terminates its operations, the CITY has the first right of refusal to purchase at the fair market value. E. REMOVAL OF LESSEE'S PROPERTY The LESSEE shall have the right, within fifteen (15) days after the termination of this lease, whether such termination comes upon expiration of the initial term, any extension or otherwise under any provision of this lease, to remove from the premises all of LESSEE's furnitures, fixtures, egsip ent and furnishings which have not become the property of the CITY, but LESSEE shall restore the premises to their original condition, normal wear and tear excepted, provided the CITY shall have a lien on all of LESSEE's property to secure any unpaid rental or other charge due the CITY; and LESSEE's right to renove property from the premises is conditioned upon all amounts due the CITY from LESSEE having been paid in full. Unless a renEwal agreement is executed, property left on the premises after thirty (30) days from the date of termination of this agreement shall be deered abandoned and will become the property of the CITY, and may be disposed of as the CITY sees fit, without any liability to the LESSEE to account for the proceeds of any sale; and the CITY, a= its option, may charge rent frog► termination of the agreement through the day of final removal of the property, ar of notification to the LESSEE of the abandonment of the property and taking by the CITY, as the case may be, which rent shall not be less than the total dollar mount of the fixed rest and the minimus guarantee required to be paid by the LESS= to the CITY. -i4- F. PARKING If LESSEE has a lease with the CITY in effect on April 30, 1989, LESSEE may retain its allocated parking spaces in the Ready and Return Car Area of the AIRPORT during the term of this lease. Otherwise, the Director of Aviation shall allocate parking spaces in the Ready and Return Car Area of the AIRPORT to LESSEE. LESSEE agrees to confine its automobile parking to the parking spaces allocated to LESSEE. No additional parking area has been provided (except in exclusive leased service area) for the parking of LESSEE's vehicles, and LESSEE is prohibited frca parking its vehicles on any of the curbs or entrance roads to the terminal area. Vehicles parked in the AIRPORT's paid pa -king lot area shall accrue charges in accordance with current park -=I g rates, and the CITY has no obligation to detect or report LESSEE's vehicles so parked. G. STANDARD OF SERVICE The LESSEE shall conduct a first class automobile ren -..al service, providing adequate service at all times to neet the demands for such service at the AIRPORT. The LESSEE agrees to conduct its business in a proper and courteous manner and to furnish prompt and efficient service, making available to the public clean, late -model, Soba -mileage automobiles in goer mechanical condition. The LESSEE agrees to charge fair, reasonable and non discriminatory rates and charges for the rental of vehicles, however, the LESSEE may make reasonable and non-discriminatory discounts, rebates or other similar types of price reducticns to volume customers. H. BUSINESS SOLICITATIONS All of LESSEE's business operations and solicitations will be confined to the leased premises. LESSEE agrees to have its own employees in attendance at the counter during all hours of scheduled airline operations. I. ADVERTISING The LESSEE will erect no signs and will distribute n.- advertising cadvertising in the AIRPORT or on AIRPORT property without `—'-,e prior written consent of the Director of Aviation. J. UTILITIES The LESSEE shall assume and pay for all costs or charges fcr metered utility services furnished LESSEE during the initial ter hereof, and any subsequent extension; provided that LESSEE shall have the right to connect to any storm and sanitary sewers and water and utility outlets, the cost of usage extension, installation and meters, where required, to be borne by the LESSEE. K. PAYMENT OF TAXES, FEES The LESSEE shall pay all federal, state and local gove=nmen. taxes, license fees and occupation taxes levied on the bus .ness conducted on the leased premises, or on any of LESSEE's prc_erty used in connection therewith. The LESSEE shall render for taxation purposes all automobiles and other property used in connection with the business on the AIRPORT, and all such -16- property shall have its situs and domicile in Lubbock, Lubbock County, Texas. Taxation is subject to legal protest in accordance with the provisions of the taxing authority whose levy is questioned. 'Any protest is at the sole expense of LESSEE. Delinquency in payment of such obligations after any protest has been settled shall, at the option of the CITY, be cause for termination of this lease. L. REGULATIONS The LESSEE's officers, agents, employees and servants will obey all rules and regulations which may be promulgated by the CITY or its authorized agents in charge of the AIRPORT, or by other lawful authority, to insure the safe and orderly conduct of operations and traffic on the AIRPORT. M. PROHIBITION OF SUBLEASES AND ASSIGNMENTS The LESSEE will not directly or indirectly assign, sublet, sell, hypothecate or otherwise transfer this lease or any portion of the leased premises, without the prior written consent of the Director of Aviation. !l. REIKOVAZ OF TRASH LESSEE shall at is sole expense provide the complete and adequate sanitary handling and disposal, away from the AIRPORT, of all trash, garbage and other refuse which results from the operation of LESSEE's business. O. INDEMNIFICATION AND INSURANCE 1. The CITY shall stand indemnified by the LESSEE as provided by this agreement. The LESSEE shall be deemed to be an independent contractor and operator responsible to all parties -17- for its respective acts and omissions, and the CITY shall in no way be responsible therefor. In the exercise of the obligations and in the enjoyment of the privileges granted by this agreement, the LESSEE shall indemnify and save harmless the CITY from any and all losses that may proximately result to the CITY because cf any fault or negligence on the part of the LESSEE, its agents, employees or invitees, and shall indemnify the CITY against any and all claims, demands, suits, judgments and losses whatsoever. 2. :he LESSEE shall =aintain at all times, at its sole expense and with an insurance underwriter authorized to do business i-. the State of Texas and acceptable to the City, nsurance a ainst claims of general liability, automobile liability and prcperty damage resulting from LESSEE's business' activities at the AIRPORT. The amount of ingurpnnA e%nvorana shall be not less tha_-a FIFTY THOUSAND ($50,000.00) DOLLARS for property danage as a result of any one event; or less than 0:: DRZ-D :E1,DSA'M ($1C0.,000-00) DrJT-R.S for personal injury or death of any one person in any one event; or less than THREE ,.. IED THHO%SA-ND ($300,000.00) DOLLARS for personal injury or death of two or =ore persons in any one event. Certificates cf insurance or other satisfactory evidence of insurance shall be filed with `-he Director of Aviation prior to entry upon the prenises by the TT"-SSEE. , Each policy shall name the CITY as a:: additional insured, require the insurer to notify the Director c_ Aviation of the City of Lubbock, Texas, of any alteration, renewal cr cancellation, and remain in full force and effect -1s- until at least ten (10) days after such notice of alteration, renewal or cancellation is received by the Director of Aviation. The LESSEE shall provide workers' compensation insurance sufficient to meet statutory requirements. The workers' compensation policy shall provide employer's liability insurance in the amount of ONE HUNDRED THOUSAND ($100,000.00) DOLLARS. P. MAGES The LESSEE shall pay, or require the payment of, the prevailing wage rate for each craftsman or workman employed by :ESSEE, or by persons or firms engaged by LESSEE, for any alteration of the premises or installation, maintenance or repair of vehicles, fixtures, equipment and furnishings used in LESS77's operations, as required by ordinances enacted pursuant to Article 5159a, V.A.C.S., as amended. The ordinances and statute and a-endments thereto are incorporated herein by reference for a31 purposes. Q. CONDUCE AND APPEARANCE OF EMPLOYEES Any employee in LESSEE's operations that nay be deemed to be discourteous or objectionable on reasonable grounds shall be removed from the premises by LESSEE on demand by CITY. CITY likewise reserves the right to eject any objectionable person or persons, including LESSEE's employees, iron said premises, and °upon the exercise of this authority through CITY's agents or employees, LESSEE hereby waives any right and all claims for damage against CITY or any of its agents, officials or employees. -19- R. LIENS PROHIBITED The LESSEE shall not bind or attempt to bind the CI'T?' for payment of any money in connection with construction, req>airi.ng, alterations, additions or reconstruction work on the premises, and LESSEE shall not permit any mechanic's, imaterialman's or contractor's liens to arise against the premises or imprazements thereon, or any equipment, machinery and fixtures therein belonging to the CITY, and LESSEE expressly agrees that it will keep and save the premises and the CITY harmless from a13 costs and damages resulting from any liens of any character crea-ed or that may be asserted through any act or thing done by the LwsEE. In the event any mechanic's lien or other lien or cr.:ers for payment shall be filed against the premises or improveme_,�tts thereon, or against CITY -owned property located therein ming the initial term hereof, or during any subsequent extensi=, *T-rSSEE shall within ten (10) days cause the same to be cz:.elled and discharged of record by bond or otherwise, at the ele=--ion and expense of LESSEE, and shall also defend on behalf of the CITY, at LESSEE's sole cost and expense, any action, suit or proceeding which may be brought thereon or for the enforcment of such lien or orders. Failure of the LESSEE to comply v4*- any requirement of this section or paragraph shall be cause fcr i=ediate termination of this agreement by the CITY. S. NON-DISCRIMINATION PRACTICES LESSEE, its agents and employees will not discrimLn.a.e against any person or class of persons by reason of age, race, color, handicap, religion or national origin in providing a, --y -20- 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 might demand that the CITY take in order to comply with the Sponsor's 15ssurances. LESSEE agrees not to discriminate against any employee or applicant for employment because of age, race, color, sex, handicap, religion or national origin. The LESSEE agrees.to take affirmative action to insure that applicants are employed and that employees are tested during employment without regard to their age, race, color, sex, handicap, 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. T. SINGULAR AGREEMENT LESSEE shall not operate more than one rent -a -car service at the AIRPORT nor occupy space provide for more than one passenger car rental concession at the AIRPORT at any time during the initial term of this agreement, or any subsequent extension. if LESSEE has an existing lease agreement with the City that allows LESSEE to operate a car rental concession at the AIRPORT at the time LESSEE enters into this agreement, the prior lease will be deemed abandoned by LESSEE. However, LESSEE herein agrees to pay all outstanding rentals, fees and other charges incurred under the prior lease within thirty (30) days of the date of execution of this lease. -21- ARTICLE SEVEN TERMINATION, CANCEIJ TZO2T A. TERMINATION This lease shall terminate at the end of the full term hereof and LESSEE shall have no further right or interest in any of the lands or improvements hereby demised, except as provided- in rovided in Article Six. B. CANCELLATION BY LESSEE . This lease shall be subject to cancellation by LESSEE after the happening of one or amore of the following events: 1. The permanent abandonment of the AIRPORT as an air terminal. 2. The lawful assumption by the United States Govern enE, or any authorized agency thereof, of the operation, control or use of the AIRPORT, or any substantial part or parts thereof, 1-n such a manner that substantially restricts LESSEE for a period of at least ninety (90) days from operating ;.hereon. 3. Issuance by any court of competent jurisdiction of an injunction in any way preventing or restraining the use and operation of the AIRPORT for a period of at least ninety (90) days. 4. The default of the CITY in the performance of any covenant or agreement herein required to be performed by the CIn' and the failure of the CITY to remedy such default for a period Of sixty (60) days after receipt from. LESSEE of written notice to remedy the same. -22- LESSEE may exercise such right of termination by giving thirty (30) days advance written notice to the CITY at any tine after the lapse of the applicable periods of time and this lease shall terminate as of the thirtieth (30th) day. Rental due hereunder shall be payable only to the effective date of said termination. C. CANCELLATION BY CITY This lease shall be subject to cancellation by CITY after the happening of one or =ore of the following events: 1. The taking by a court of co-petent jUrisdiction of LESSEE and its assets pursuant to proceedi-.gs brcughtt under the ,Provisions of any federal reorganization act. 2. The appo nt=ent of a receiver of LESSEM'S assets. 3. The divestiture of LESSEE'S assets here--n by other operation of law. 4. The abandon=ent by LESSEE of its rent-a-c�a= service at -_e A?RPCRT for a period of thirty (3 0) days or more. 5. The failure by LESSEE to pay ar.• rentals or other charges hereunder when due. 6. The default by LESSEE in the performance of any covenant or agreement herein required to be perforned by LES S a-d the failure of LZESSEE to re=edy such default for a period cf sixty (60) days after receipt from CITY of urritte.^ notice to re=edy the sa=e. 7. The lawful assumption by the United States C©vern=er_t Of the operation, control or use of the A —.POR , :i amy substantial part or parts thereof, or any =_uthorized agency -23- thereof, in such a manner as to substantially restrict -;PSSEE for a period of at least ninety (90) days from operating -hereon. If any of the aforesaid events occur, CITY Y enter `...ire leased premises and take immediate possession of the sane and removeLESSEE'S effects. Upon said entry this lease sh.=._=1 terminate, and any rental due hereunder shall be paya�ble to said date of termination. It is agreed that failure to declare this lease _.ermi^atec upon the default of LESSE for any of the reasons set f=-- abc.e shall not operate to bar or destroy the right of C__' to Geclar= this lease null and void as a result cf any s.f=se-q.:ent c:aticn of the terms of this lease. ARTIC11 ET G- , GE�IALL A. = v OF �Gm1CY ing tine of Saar c= rational emergency, the c::—., have the rich- to lease the landing area or a:.,.a ^a--- _; e_e-- tc the united States for governmental use and, i` any su—,,:ease i= executed, the provisions of this irstru hent, _:_sofas as they are _noon=:stent v to the prcvsions of the lease to :tee 7---:teA States, shall be suspended. B. CNSCR' c -r._s lease shall be subordinate to the ar v4 s__ s zz existim or futlare agree3ent between the CiI~a and `.?-e Stites car;ce^ig the operation or rainterxan':e the exec.,tio:a of which has hbeen or ma be required a �-- _R } Y ed s a o�..i.,n precede-- to the expenditure of federal funds `cr tre '167e eprent -24- of the AIRPORT. Should the effect of such agreement with -he United States he to take any of the property under lease or substantially destroy the commercial value of such iaprcrenents, the CIr! shall not be held liable therefor. C • RE?LACEM I T AFTER . DAMAGE It is agreed between the parties hereto that in the event he leased premises are damaged by fire or other accident.a_ cause during the tern hereof so as to become totally or partially ::nterantable, the CITY shall have the option'to restore the Premises to their former condition. If the CITY elects -:_c exercise the option, the CITY shall give LESSEE notice :N. writing cf its election within thirty (30) days of the occurrence cf such chance. If the CITY elects to restore the premises, the C_= -y _hall proceed with due diligence and there shall be an aba-eaent the rent until repairs have been rade for the time and to the extent for which the premises, or part :hereof, have been -..te^ant—able. Should the CITY not exercise the option t re_=ore the premises, the lease of such untenantable portion of e premises shall cease and terminate effective with the date of amace by fire or other accidental cause. CO F LICT OF IN -MR IST ='h^e LESSEE ack:nowledges that it is informed that iex=s law pr�h _b its contracts between the CITY and its "officers" and e=loyees, " and that the prohibition extends to an off icer ar.d LrplaYee of CI=_agencies such as CZTYY-owned utilities a::d =er--a n CITY boards and ccnmissions, and to contracts with ^, p,a .ership, cc -.:oration or other or a !.nation in which the -25- officer or emmployee has a substantial interest. LESSEE certifies (and this agreement is made in reliance thereon) that neither he LESSEE nor any person having an interest'in this agreement is an officer or employee of the CIda' or any of its agencies. E. LIEN OR BOND LESSEE must provide the CITY with a perforrance bond in the amount of FORTY THOUSAIM D LIARS ($40,000), to be reviewed annually, to secure the prcnpt payment of the m ni=u:m annual guaranteed rental and all other charges herein stipulated to he paid for the use of the leased premises. In lieu of a perfor=ance bond, LESSEE may give the City of Lubbock a secured interest with priority over the secured interests and liens of all other creditors of LESSEE in all vehicles, equipment, furniture, fixtures and furnishings used L. LESSEE'S car rental operation at the AIRPORT, including all vehicles, equipment, furniture, fixtures and furnishings hereafter acquired and so used. To insure the priority of the secured interest granted to the CITY, LESSEE shall file with She Director of Aviation subordination agreements executed by and between the City of Lubbock and any and all persons or firms w"C are secured parties with secured interests that would have priority over the secured interest granted to the City subordinating such other secured interests to the secured interest held by the City. Zn addition, L,;:.SSEE' shall secure subordination agree: eats between the City of Lt bhcck and any person or fir= who takes a Purchase money secured interest in LESSEE'S vehicles, equipment, furniture, fixtures and furnishings -26- during the initial terga of this lease agreement (or any extension thereof), subordinating such purchase honey secured interest to the secured interest held by the City. LESSEE shall fu-t.: secure and file with the Director of Aviation subordination agreements executed by and betuleen the City of Lubbock and a-ny person or firm holding a lien against any structures or other improvements used or installed by LESSEE upon the leased Premises, subordinating such :sen to the CITY'S lien against such stn:ct—es or improvements -to secure pay«ent of a31 amounts due t under this agreement. LESSEE shall execute security ag--eements and sign financing statements to be filed with the County Clerk of Lubhocc County and the Secretary of State .of Texas; such seCuity agreements shal_ give the City of Lubbock a secured interest in all vehicles, equipnent, furniture, fixe--es and = =ish: s used in LESS=' = ca.Y rental operation or. the r -'-r-RPoR__ , all such iters hereafter acquired for such se and a =hen �-:cn all structures and improve-eats presently exist-.^.j or to he installed or constr`-ucted upon the leased premises :::ring ..he initial term of this Lease Agreement, or any extension `-hereof. In addition to executing said security agreement, -=SS== wll file with the Director of Aviation a schedule sh--wi^c the actor vehicle identif cation and registration numbers of each eni^:e used in its car rental r i ..�.._ c, a aCicn on the AArper= and such s;a^pleaenza=-y schedules as are necessary to Keep the -nfcr=ed as to the number and iden'City of such vehicles. -27 - 1 0. F. RIGHT OF :NspECTION The CITY reserves the right to conduct inspections of the leased premises at reasonable tines to insure that fire, safety and sanitation regulations and other provisions contained in this lease are being adhered to by the LESSEE. G. TTRKINATICN OF LASE, SURRE2,DER OF LF-ASED PREMisES AND ©WYERSHIP OF JypRovET %-TS ""he LESSEZ covenants ,and agrees that at the expirat_cn of the :zitial tern or any extension umhichh has been gzanted, sr upon earlier termination as prc.;vided in this =ease agreeren.t, ft._� gait and surrender the leased premises and the irprovements good state and conditic.n, reasonable wear and teas; ams cf God and other casualties excepted, and the CI7111 shall have --"-e right to take possession of the leased premises and the i.sprovenents, subject to the =imitations provided by Article Six, secti-n D of this lease, w :. or without process of lau,. he paragraph heac�ncs conta4ned here Ln are for cea.:en�ence in reference and are rot intended to define, extend or _tet he scope of any pr V; siors of this agreement. N07 ICES Notices to the C --required or appropriate under =h___ agreement shat: be deemed sufficient i` in citing and registered or certified nail, postage prepaid, addressed tc -tee, Of l_^r .re Aviation, uh�cc" Internat;cna Airport i =89, _ bbock, Texas 540:. 'Not_Ces to =he _SSEE shale .be deemed _.:ff:c:ent if amd --ailed, registered or mail, Postage prepaid, addressed to the LESSEE at the mess on f`_2e with the Director of Aviation. J. ENTIRE AGR.EEKEia This agreement constitutes the entire agree=ent bet--z;ean the C::7Y and LESSEE, and any other vritten or Parole agreement kr_th the C'17Y is expressly waived by :,XSSEE. D `his day of C:TY OF LUBBOCK _0 -- i. r=s=. (412'ecretary APPRC-;ZB As To Ma±': -n Coff Direct - of viatica A—PP-RO • II3 AS TO !" A 3331ara H Ir O a _a: J ' ¢ z Z a� W O W d H W /- J CW9 Z Zcr Uj G to N W m W J CC Z Y U O com J i 4J 1- w — •c U 1 - ll, IItO' Nl�7tC�NN.. MFN�t ;, • r a o • 1.o' --1 in m Avis Pucr eT LUBBOCK INTERNATIONAL AIRPORT ��c:�oc��-��r•: Ems' � t � � ! . Et:1R: Ft>1NT•'PAINTIN c�, � S t0 (v Se's E7E. �t?L A j�1 t -I ' 51,1: 1�� �' • • - � • •. .. �. � . '-'�-.-�.--;'+:.jam-+..! _.i• -,�: -, � •• •'i •.�V •ice' •R • i •r• !, i• 11i •t�• 71 Z11L IL S. 4 F02 t%�MCNSIGNS THIS•'Al;,.:fs M /?ow'� •� 1 f � 5 :nil - 0.7-- - , : _ _ -, _".; - . _ ' .' 232• � � ------ :— --- - .-24 _ ?' •,� 555 • - _ vo - - Lubbock Intern - -'• ationat Airport rent 'car parking • • r _ A O a_ cr ' Q z Z vJ w U Q Ixu W �-•• f J Q Y C9 WZ Z U m Z W W m ITTL N f— J J N CL Z ' ai 0 N U c, In -' +J .r .1.J S O > > b U m d Z x ' '�j• TdmUC� 1 „? 1 1 1 1 m J • _"�~ . x Qj lu • a 1 (l 1 (r �Q lU el X'.�?''I. 04 CC ' {� EXHIBIT "A" 1-- m 2 X W 4, 1 0♦ N1�7lc�t� lu... b v 1 I'717' 1 \ . _L._... _ ..... _ ._....._ 1.._ ._ ko •. u 1 •. •1 \ • Ila � . I 1 1 j...w.,� •,,11� I��/ ,\ 1 1'�_ 1w�.1.r.1� .'11,• ,�t'1 III.Ki.\�.,.r. �1 I �, • � �.� 11 1 �\ /\''' I 1 • , ; ,' , 11 1 � 1 . I 1 •1 1 , \ N \FI.1. lN�M_\• ._ IN,iI LUBBOCK INTERNATIONAL AIRPORT SERVICE AREA LAND LEASE EXIIIBIT "6" —... � � � �- - � • � - � � 111 ,.f,• f ••�• ''� GE•NT�R: Fb1NT•'PA1NTjN tz �- •• � , • .•. ;;• •.'. • M !'.�'._,r '• f'.�. � •�,' a• f•r.�.••1 .fes j .�•.,'�•'•'a•�, •7 �.�f� �Z, ,,p F� Pu B t: �G,•-EN TRA'i�l•r= •- i -_, � _ - . y4. fr`•�-.. �.: •_ • . �� FDZ •GIMc Ns1GNS TH 1�•' AI2r p •� ,• �•„ ; "'- © Rett �s •� ct� Q ' 9 s i+ - Rot.ia21► . • •� . Aow'�'1 r-> R x>i - Cr �• � 5 � �, Lubbock International Airport • J: r rent car parking .;