HomeMy WebLinkAboutResolution - 2727 - Lease Agreement - Caprock Travel Services - Counter Space, LIA Terminal Building - 01/28/1988HW:js
RESOLUTION
Resolution #2727
January 28, 1988
Item 23
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 Agree-
ment by and between the City of Lubbock and Caprock Savings and Loan Associ-
ation, d/b/a Caprock Travel Services for counter space in the terminal
building 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 28th day of January , 1988.
G r
'B. C. McMINN, MAYOR
ATTEST:
, City Secretary
APPROVED AS TO CONTENT:
Marvin Coffee, D,10ctor of Aviation
APPROVED AS TO FORM:
/4/2�J_/`'
* A -4v
arold Willard, Assistant City
Attorney
I
Res/ 2727
THE STATE OF TEXAS }
} KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF LUBBOCK }
SPACE LEASE - TERMINAL BUILDING
This agreement, entered into at Lubbock, Texas, by and between
the City of Lubbock, hereinafter referred to as "Lessor," and
Caprock Savings and Loan Association d/b/a Caprock Travel
Services, hereinafter referred to as "Lessee;"
WHEREAS, Lessor owns and operates a public airport designated as
Lubbock international. Airport herein called "Airport;" and
WHEREAS, Lessee desires to conduct a travel agency hereinafter
referred to as "Agency," in the terminal building at the Lubbock
International Airport.
ARTICLE I
NOW THEREFORE, for and in consideration of the covenants and
conditions herein contained and other valuable consideration, the
Lessor authorizes the Lessee to exercise the rights, powers and
privileges hereinafter set forth and does hereby lease to the
Lessee approximately 150 square feet as shown in Exhibit "A",
attached herewith and made a part of this Lease for all purposes.
The term of this Agreement shall be for a period of three (3)
years, commencing February 1, 1988. This Agreement automatically
renews annually unless terminated as provided in Articles IV and
V below.
ARTICLE II
In consideration of the rights and privileges herein granted,
Lessee shall pay to Lessor a rental of Fifteen and 76/100 Dollars
($15.76) per square foot per year adjusted in January 1989 by the
CPI as hereinafter defined. Lessee shall pay to Lessor the rent
as set forth in twelve (12) monthly installments payable in
advance by the tenth (10th) day of each month.
All payments that become due and payable by Lessee shall be made
to the City of Lubbock at the office of the Director of Aviation,
Lubbock International Airport, Lubbock, Texas.
ARTICLE III
This Lease is granted subject to the following conditions:
1. Lessee shall use the leased premises solely for the
purpose of operating a travel agency.
2. Lessee shall provide such services as are usual and
customary in the travel agency business.
PAGE 1
3. Lessee's right to operate a travel agency within the
terminal building at the Airport shall be nonexclusive,
4 Any property installed or added by Lessee which becomes
permanently attached to the premises shall become the
property of Lessor upon termination of the Lease
Agreement.
5. Lessee will erect no signs and will distribute no
advertising matter in the Airport without the prior
written consent of the Director of Aviation. Such
prior written consent shall not be required for
advertising placed by Lessee with Ackerly Airport
Advertising, Inc. or any other party having the right
to sell, rent or offer airport terminal advertising
space.
6. All of Lessee's business operations and solicitations
will be confined to the leased premises.
7. The Lessee shall not bind or attempt to bind Lessor for
payment of any money in connection with installations,
alterations, additions or repairs on the leased
premises or any of Lessee's equipment or facilities
located on the leased premises and shall not permit any
mechanic's, materialmen's, or contractors liens to
arise against the premises or any improvements,
equipment, machinery or fixtures thereon belonging to
the Lessor and Lessee expressly agrees that it will
keep and save the premises and Lessor harmless from all
costs and damages resulting from any lien or liens of
any character created or that may be asserted through
any act or thing done by the Lessee.
B. Failure of the Lessee to comply with any requirement of
paragraph 7 shall be cause for immediate termination of
this Lease Agreement by Lessor.
9. Lessor shall assume no responsibility as to the
condition of the leased premises and shall not assume
responsibility for maintenance, upkeep, or repair
necessary to keep the premises in a safe and
serviceable condition.
10. Lessor shall have right to change the location of the
leased premises and all costs of moving shall be borne
by the Lessee.
11. Lessor shall have the right to approve any construction
or remodeling by Lessee on the leased premises.
ARTICLE IV
This Lease is granted subject to the following additional
provisions and conditions:
PAGE 2
1. The Lease herein granted is subject to any and all
applicable laws, ordinances, rules and regulations
pertaining to the Lubbock International Airport.
2. During the time of war or national emergency the Lessor
shall have the right to enter into an agreement with
the United States Government for military or naval use
of part or all of the landing area, the publicly owned
air navigation facilities, and other area or facilities
of the Airport. And if any such agreement is executed,
the provisions of this instrument, insofar as they are
inconsistent with the provisions of the agreement with
the Government, shall be suspended, but rent hereunder
shall abate accordingly.
3. This Agreement shall be subordinate to the provisions
of any existing or future agreement between Lessor and
the United States relative to the operation and
maintenance of the Airport, the execution of which has
been or may be required as a condition precedent to the
expenditure of federal funds for the development of the
Airport. Should the effect of such agreement with the
United States be to take any of the property under
lease or substantially destroy the commercial value of
Lessee's rights under this Agreement, the Lessor shall
not be held liable therefor, but rent hereunder shall
abate accordingly.
4. All rights, privileges and interests acquired herein by
Lessee at the option of the Lessor, following written
notice of thirty (30) days, may be suspended if such
suspension is found by the Lessor, acting in good
faith, to be necessary to secure federal financial aid
for the development of the Airport, or further develop-
ment and provisions of aeronautical operations thereon,
but rent hereunder shall abate accordingly.
5. The Lessor, acting by and through the Director of
Aviation, or other designated representative shall have
the right to inspect the property at all reasonable
times during the term of this Lease.
6. Any property of the Lessor or any property for which
the City of Lubbock may be responsible, which is
damaged or destroyed incident to the exercise of the
privileges herein granted or as a result of acts or
omissions of the employees or agents of Lessee, shall
be properly repaired or replaced by the Lessee to the
satisfaction of the Lessor and its authorized
representatives, or in lieu of such repair or
replacement, the Lessee shall, if so required by the
Lessor, pay to the Lessor money in any amount deemed
sufficient by the Lessor to compensate for the loss
sustained by the Lessor by reason of the loss of,
damage to or destruction of such property.
PAGE 3
7. The Lessee shall be deemed to be an independent
contractor and operator responsible to all parties for
its respective acts or omissions and Lessor shall in no
way be responsible therefor.
S. The Lessee agrees to indemnify, defend and forever save
the Lessor, its authorized agents, representatives and
employees, harmless from and against any and all
penalties, liability, annoyances or loss resulting from
claims orcourt action of any nature arising directly
or indirectly out of any acts or omissions of the
Lessee, its agents, servants, employees or business
visitors under this Agreement.
9. The Lessee shall maintain at all times, at its sole
expense, insurance with an insurance underwriter
acceptable to the Lessor and from one authorized to do
business in the State of Texas, against claims of
public liability and property damage resulting from
Lessee's business activities at the Airport. The
amount of insurance coverage shall be not less than
FIFTY THOUSAND AND N0/100 dollars ($50,000.00) for
property damage as a result of any one event, or less
than ONE HUNDRED THOUSAND AND N0/100 DOLLARS
($100,000.00) for personal injury or death of any one
person in any one event; or less than THREE HUNDRED
THOUSAND AND N0/100 DOLLARS ($300,000.00) for personal
injury or death of two (2) or more persons in any one
event. Certificates of insurance or other satisfactory
evidence shall be filed with the Director of Aviation
prior to entry upon the premises by the Lessee. Each
policy shall name the Lessor, City of Lubbock, as an
additional insured as its interest may appear. Each
policy shall provide "It is agreed that insurer shall
notify the City of Lubbock, Texas, of any alteration,
renewal or cancellation of this policy and that this
policy shall remain in full force and effect until ten
(10) days after such notice is received by the Director
of Aviation."
10. Lessee shall furnish to the Lessor satisfactory
evidence that it carries Workmen's Compensation
Insurance in accordance with the laws of the State of
Texas.
11. The Lessee shall assume responsibility for the payment
of all taxes and assessments, license fees and public
utility charges levied on the business conducted on the
leased premises or becoming due on the property of
Lessee used in connection therewith from the date of
execution of this Agreement. The Lessee agrees to pay
all claims or damages for or on account of water,
lights, heat, power, sewage disposal and any other
services or utilities furnished to or with respect to
the property or any part thereof. The Lessor does not
PAGE 4
guarantee to furnish utilities or utility services in
the future. In the event utility service is not
furnished for reasons other than repair or
installations of lines or nonpayment of charges, Lessee
shall have the option to cancel this Lease upon thirty,
(30) days notice to the Lessor.
12. The Lessee, for himself, his heirs, personal
representatives, successors in interest, and assigns,
as a part of the consideration hereof, does hereby
covenant and agree as a covenant running with the land
that in the event facilities are constructed,
maintained, or otherwise operated on the said property
described in this Lease for a purpose for which a DoT
program or activity is extended or for another purpose
involving the provision of similar services or
benefits, the Lessee shall maintain and operate such
facilities and services in compliance with all other
requirements imposed pursuant to 49 CFR Part 21,
Nondiscrimination in Federally Assisted Programs of the
Department of Transportation, and as said Regulations
may be amended.
13. The Lessee, for himself, his personal representatives,
successors in interest, and assigns, as a part of the
consideration hereof, does hereby covenant and agree as
a covenant running with the land that: (1) no person
on the grounds of race, color, or national origin shall
be excluded from participation in, denied the benefits
of, or be otherwise subjected to discrimination in the
use of said facilities, (2) that in the construction of
any improvements on, over, or under such land and the
furnishing of services thereon, no person on the
grounds of race, color, or national origin shall be
excluded from participation in, denied.the benefits of,
or otherwise be subject to discrimination, (3) that the
Lessee shall use the premises in compliance with all
other requirements imposed by or pursuant to 49 CRF
Part 21, Nondiscrimination in Federally Assisted
Programs of the Department of Transportation, and as
said Regulations may be amended.
14. The Lessee will conduct its activities and operate its
facilities in accordance with the requirements of
Section 504 of the Rehabilitation Act of 1973 and will
assure that no qualified handicapped person shall,
solely by reason of his or her handicap, be excluded
from participation in, be denied the benefits of, or
otherwise be subjected to discrimination, including
discrimination in employment, under any program or
activity of the Lessee.
15. The Lessee acknowledges that it is informed that Texas
Law prohibits contracts between Lessor and its
"officers" and "employees", and that the prohibition
PAGE 5
extends to an officer of City agencies such as
City -owned utilities and certain City boards and
commissions, and to contracts with any partnership,
corporation or other organization in which the officer
of employee has an interest. Lessee certifies that
neither it nor any person having an interest in this
contract is an officer or employee of the City of
Lubbock or any of its agencies.
16. The Lessee warrants that it has not employed any person
employed by the Lessor to solicit or secure this Lease
Agreement upon any agreement for a commission,
percentage, brokerage or contingent fee.
17. This Lease may not be assigned without the written
consent of Lessor, but such consent shall not be
unreasonably withheld. No such assignment or
subletting shall affect Lessee's obligations to make
all required rental payments hereunder.
18. The failure of the Lessor to insist in any one or more
instance upon performance of any of the terms or
conditions of this Lease shall not be construed as a
waiver or relinquishment of the future performance of
any such term or conditions, but the Lessee's
obligation with respect to such failure of performance4
shall continue in full force and effect.
19. Lessee shall provide a complete and proper arrangement
for the adequate sanitary handling and disposal away
from the Airport, of all trash, garbage and other
refuse caused as a result of the operation of its
business at its sole expense.
20. In the event Lessee remains in possession of the.leased
premises after the expiration of this Lease Agreement
without any written renewal or extension of this Lease,
such holding over shall not be deemed as a renewal or
extension of this Lease, but shall create only a
tenancy from day to day which may be terminated at any
time by Lessor.
ARTICLE V
This Lease Agreement shall terminate at the end of the full term
hereof and Lessee shall have no further right or interest in the
premises hereby demised except as provided in Article IV,
paragraph 20.
This Agreement is subject to termination for the reasons set
forth below, provided that thirty (30) days written notice is
given to the non -terminating party. Rental due hereunder shall
be payable only to the effective date of said termination.
PAGE 6
A. The Lessee may terminate upon the happening of any of
the following:
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
and the remaining in force of such injunction for
at least thirty (30) days.
3. The breach by the Lessor of any of the terms,
covenants or conditions of this Agreement to be
kept, performed and observed by the Lessor, and
the failure of the Lessor to remedy such breach
for a period of sixty (60) days after written
notice from the Lessee of the existence of such
breach.
4. The assumption by the United States Government, or
any authorized agency of same, of the operation,
control or use of the Airport and its facilities
in such a manner as to substantially restrict the
Lessee from operating under the terms of this
Agreement, if such restriction is to continue or
has continued for a period of three (3) months or
more.
B. The Lessor may terminate upon the happening of any of
the following:
1. If the Lessee shall file a voluntary petition of
bankruptcy; or, if the proceedings in bankruptcy
shall be instituted against it and it is
thereafter adjudicated a bankrupt pursuant to such
proceedings; or, if a court shall take
jurisdiction of Lessee and its assets pursuant to
proceedings brought under the provision 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 and discontinue
operations under this Agreement.
3. If the Lessee shall default in or fail to make any
payments at any time and in the amounts as
required of it 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 it.
PAGE 7
5. If the Lessee shall fail to abide by all
applicable laws, ordinances and rules and
regulations of the United States, State of Texas,
City of Lubbock or Director of Aviation of the
City of Lubbock.
6. if Lessor, acting in good faith, finds termination
of the rights, privileges and interests of Lessee
acquired under this Lease to be necessary to
secure Federal Financial aid for the development
of the Airport, or futhther development and
provisions of aeronautical operations thereon.
C. In the event the terminal building at the Lubbock
International Airport' is damaged by fire or other
accidental cause during the term of this Lease
Agreement so as to become totally or partially
untenantable, Lessor shall have the option to restore
the premises to their former condition. If Lessor
exercises its option to restore the premises, Lessor
shall proceed with due diligence. If the damage is so
extensive as to amount practically to the total
destruction of the utility of the leased premises for
the uses expressed in this Lease Agreement, Lessee's
obligation to pay rent hereunder shall abate for the
time and to the extent that the premises have been
rendered untenantable. Should Lessor not exercise its
option to restore the premises, this Lease shall
terminate, such termination to be effective on the date
of damage by fire or other accidental cause, and the
rent shall be apportioned to that date.
D. Within fifteen (15) days 'following the date of
expiration or termination of this Agreement, Lessee
shall, as required by Lessor, vacate said premises,
remove all property of Lessee and restore the leased
premises to as good a condition on such date of
expiration or termination as when received, ordinary
wear and tear excepted= provided, however, that
Lessee's right to remove its property is subject to the
condition that Lessee has paid in full all amounts due
and owing Lessor under this Lease Agreement. If, after
being requested to do so by Lessor, the Lessee shall
fail or neglect to do so by Lessor, the Lessee shall
fail or neglect to remove said property and so restore
the leased premises within fifteen (15) days of said
expiration or termination, then at the option of Lessor
said property shall either become the property of
Lessor without compensation therefor or Lessor may
cause the property to be removed and the leased
premises to be restored at the expense of Lessee, and
no claim for damages against Lessor or its officers,
agents or employees shall be created or made on account
of such removal and restoration.
PAGE 8
ARTICLE VI
1. Notices to the Lessor required or appropriate under
this Lease shall be deemed sufficient if in writing and
mailed by registered mail with postage prepaid to the
Director of Aviation, Lubbock International Airport,
Route 3, Box 201, Lubbock, Texas 79401.
Notices to the Lessee required or appropriate under
this Lease shall be deemed sufficient if in writing and
mailed by registered mail with postage prepaid to the
Attention of George F. Dillman, Chairman, Caprock
Savings and Loan Association, 13355 Noel Road, Suite
1745, Dallas, Texas 75240.
2. Should Lessor institute legal action to collect rentals
due under this Lease Agreement or damages for breach of
any covenant made herein, a reasonable sum shall be
added to the amount of recovery for attorney's fees
together with all costs of court.
3. Both parties hereby agree that this instrument
constitutes the final agreement of the partiers and
that all other previous agreements, leases and
contracts between the parties which pertain to the
property described herein are hereby declared null and
void.
EXECUTED this the A� day of ��rrd,�p,� , 1988.
LESSOR:
CITY OF LUBBOCK
C �
BY: 1*4
Mayor
ST:
LESSEE:
CAPROCK SAVINGS AND LOAN ASSOC.
D/B/A APROCKVEL SERVICES
BY:
Title:��
ATT T•
City Secretary
APPROVED AS TO CONTENT:
Director of Aviation
APPROVED AS TOFORM:
Assistant City Attorney
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