HomeMy WebLinkAboutResolution - 1864 - Agreement - SWA - Airline Lease Modification - 11/15/1984MH:js
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RESOLUTION #1864
Item #24
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 an Agreement
Modifying Airline Lease Agreement by and between the City of Lubbock and
Southwest Airlines Company, 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 day of �� , 1904.
ALAN HENRY,OR
ATTEST:
Kanette uoya, City Secretary
APPROVED AS TO CONTENT:
Marvin Coffee, D' for of Aviation
APPROVED AS TO FORM:
Michyle Hart, Assistant City Attorney
/ �?*- a4!� �,
AGREEMENT MODIFYING AIRLINE LEASE AGREEMENT
BY AND BETWEEN
THE CITY OF LUBBOCK, TEXAS AND SOUTHWEST AIRLINES COMPANY
This Agreement made this . SAI -1 day of November, 1984 by
and between the City of Lubbock, hereinafter referred to as
"City," and Southwest Airlines Company, a corporation incorpo-
rated under the laws of the State of Texas with its principal
office at Dallas, Texas, hereinafter referred to as "Lessee."
The parties to this Modification Agreement entered into a
Certificated Passenger Airline Lease on the 28th day of April,
1977. A copy of that Lease is attached, marked Attachment "A",
and insofar as it is not inconsistent with the terms of this
Agreement, made a part of this Agreement.
This Modification Agreement will be cancelled automatically
in the event the bankruptcy court does not approve Continental
Airlines' rejection of their Lease covering the exclusive lease
space which is the subject of this Modification Agreement.
The parties desire to and do hereby modify the Lease,
Attachment "A" attached, in the following respects:
1. Article I. Section 1.01 is hereby modified to now read
as follows:
ARTICLE I
LEASED PREMISES AND USES
Section 1.01 - Description of Exclusive Leased Premises
The exclusive leased premises shall be comprised of
7,580 square feet, more or less, in the terminal building
which are allocated, more or less, as follows:
Ticket Counter
Space
920
square
feet
Office & Reservation
Space
1,202
square
feet
Baggage & Cargo
Space
5,124
square
feet
Communications
& Operations
Space
153
square
feet
Storage Space
181
square
feet
Total Exclusive
Space
7,580
square
feet
The location of the leased premises is designated in
colors on Exhibit A-1 attached hereto and by the reference
made a part hereof.
2. Exhibit "A" is hereby modified and replaced by Exhibit
"A-1"
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V
t3. Article V, Section 5.01 is hereby modified to now read
as follows:
Section 5.01 - Term
The term of this Lease shall be for a period of
one (1) year commencing on the 8th day of November,
1984 and ending on the 8th day of November, 1985.
4. Article VI, Section 6.01 Rental for Exclusive Terminal
Building Space is hereby modified by changing 31660 square
feet of exclusive leased space to 7,580 square feet of
exclusive leased space and by changing $30,195.00 per year
to $62,535.00 per year.
5. That in addition to the rent to be paid by Lessee to
City under the terms of this Modification Agreement, Lessee
shall continue to pay rent as specified in Attachment "A" on
the exclusive leased space described in Attachment "A",
until Lessee vacates such exclusive leased space. Upon
vacation of the leased space described in Attachment "A",
Lessee shall notify, in writing, the Director of Aviation,
who shall immediately inspect the premises and endorse upon
the written notice his verification, and such notice with
endorsement shall be kept in the Director's file and copy
forwarded to the City Secretary.
6. It is further agreed that rent on the exclusive leased
space described in this Modification Agreement begins
accruing on November 8, 1984.
Executed this day of
CITY OF LU 0
BY:
ALAN , R
qST:
Rane a Boyd, City Secretary
APPROVED AS TO CONTENT:
Makvin Coffeey%P1'irectbr
of Aviation
APPROVED AS TO FORM;
Mi le Tiart, Assistant
City Attorney
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1984.
SOUTHWEST RLINES COMPANY
B Y :i'
AT ST:
f w r� .: �.v • _ . t
� 1
AIRLINE LEASE AGREEMENT
ATTACHMENT "A"
T,,• � • t
1 �
TABLE OF CONTENTS
13
6.01 - Rental for Exclusive Terminal Building Space
Page
ARTICLE I - LEASED PREMISES AND USES
1
1.01 - Description of Exclusive Leased Premises
1
1.02 - Description of Non -Exclusive Use Premises
2
1.03 - Description of Privileges, Uses and Rights
2
1.04 - Rights and Privileges Specifically Excluded
7
1.05 - Right of Ingress and Egress
7
ARTICLE II - TITLE TO LESSEE
8
2.01 - Installed Improvements and Property
8
ARTICLE III - OBLIGATIONS OF CITY
8
3.01 - Right to Lease Property
8
3.02 - Maintenance and Operation of Airport
8
3.03 - Maintenance and Services in Lessee's Exclusive Space
10'
3.04• - Governmental Facilities
10
3.05 - Restaurant
10
ARTICLE IV - OBLIGATIONS OF LESSEE
11
4.01 - Maintenance of Leased Premises 11
4.02 - Porter Service 11
4.03 - Alterations, Additions or Replacements 11
4.04 - Removal and Demolition 12
4.05 - Trash and Garbage 12
4.06 - Taxes and Licenses 12
4.07 - Rules and Regulations -12
ARTICLE V - TERM 13
5.01 - Term 13
ARTICLE -VI - RENTALS AND FEES
13
6.01 - Rental for Exclusive Terminal Building Space
13
6.02 - Landing Fee
14
6.03 - Rental for Common Use Area
14
6.04 - Rental for Public Address System
16
6.05 - Aircraft Storage
16
6.06 - Time of Payment
16
6.07 - Default for Failure to Pay Rentals, Fees and Charges
17
ARTICLE VII - READJUSTMENT OF RENTALS, FEES, AND
OTHER CHARGES
17
7.01 - Basis for Readjusting Charges
17
7.02 - Costs Excluded
19
ARTICLE VIII - RIGHTS AND PRIVILEGES RESERVED BY CITY
19
8.01. - Right to Charge Use Fees to Others
19
8. 02 - Right to Improve and Protect the Airport
20
all
TABLE OF CONTENTS (Cont.)
ARTICLE IX INDEMNIFICATION, INSURANCE AND BONDS
9.01 - Indemnification, Etc.-
9.02
tc.9.02 -Insurance
ARTICLE X - DAMAGE OR DESTRUCTION OF LEASED PREMISES
10.01 - Partial Damage
10.02 - Extensive Damage
10.03 Complete Destruction
10.04 - Right to Recover Damages
10.05 - Limit of City's Obligations Defined
ARTICLE XI - TERMINATION OF LEASE, CANCELLATION,
ASSIGNMENT AND TRANSFER
11.01 - Termination
11.02' - Cancellation by Lessee
11. 03- Cancellation by City
11. 04- - Notice of Termination
11: 05 - Assignment and Subletting
ARTICLE XII - PROPERTY RIGHTS UPON TERMINATION
.12. 01 - Lessee's Right of Removal
12,02 - City's Rights at Termination
ARTICLE XIII - GENERAL PROVISIONS
13.01 - Other Ordinances
13. 02 - Arbitration
13.03 - Non Discrimination
13.04 - Rules and Regulations
13.05 - Interpretation of Lease
13.06 ; Conformity of Lease
13.07 Invalid Provisions
13.08 - Sponsor's Assurances
13.09-- Consent Not to be Unreasonably Withheld
13.10 - Redelivery of Premises
13.11 - Holding Over
13.12 - Federal Aviation Administration
13.13 - Inspection
13.14 - Non Exclusive
13.15 - Lease Made in Texas
13.16 - Successors
13.17 - Headings
13.18. - Time of Essence
13.19 - Notices
Page
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CERTIFICATED PASSENGER AIRLINE LEASE
Lubbock Regional Airport
Lubbock, Texas
THIS LEASE AGREEMENT, made this "ZS day of Q Pa:
197_1__.., by and between the City of Lubbock (hereinafter referred to as "City"),
and SOUTHWEST AIRLINES COMPANY a corporation incor-
porated under the laws of the State of Texas with its principle
office at Dallas, Texas (hereinafter referred to as
"Lessee").
WITNESSETH
WHEREAS, City owns and operates Lubbock Regional Airport, located in
Lubbock County, State of Texas (hereinafter referred to as "Airport"), and
WHEREAS, Lessee is engaged in the business of air transportation with
respect to persons, property, and cargo, and is certificated by the Texas Aero-
nautics Commission to furnish said service through Lubbock Regional Airport,
and
WHEREAS, City is currently operating a terminal building at said Airport
and said building includes space .for airline ticketing and operation facilities,
and
WHEREAS, Lessee desires to lease certain premises and facilities in the
terminal building and to obtain certain rights in connection with -and on the
Airport,
NOW THEREFORE, for and in consideration of the mutual covenants hereof,
City hereby leases to Lessee and Lessee hereby hires and takes from City certain
exclusive premises. (hereinafter called "Leased Premises"), and certain non -ex-
elusive use facilities, rights and privileges in connection with and on the Airport,
as hereinafter described, upon the terms and conditions as follows:
ARTT!'T.'W T
LEASED PREMISES AND USES.
Section 1.01 - Description of Exclusive Leased Premises.
The exclusive Leased Premises shall be comprised of 3,660
square feet, more or less, in the terminal building which are allocated, more
or .less, as follows:
Ticket Counter Space yGq square feet
Office and Reservation
Space &9L square leet
Baggage and Cargo Space 220 square feet
Communications and f H/
Operations Space 150 square feet
Storage Space So square feet
Total exclusive
Leased Space 3,660 square feet
The location of the Leased Premises is designated in colors on Exhibit A
attached hereto and by this reference made a part hereof.
Section 1.02 - Description of Non-exclusive Use Premises.
In addition to the exclusive Leased Premises hereinabove defined, Lessee is
hereby granted the Non-exclusive use, in common with others authorized so to
do, of such space and facilities as may be designated by City in and adjacent to
the terminal building, which space and facilities, without limiting the general-
ity hereof, shall consist of:
(A)! Ground area for the taxiing of aircraft.
(B) Space for a reasonable amount of Lessee's apron equipment.
(C) Loading gates.
(D) Adequate and reasonably convenient vehicular parking space •
for the use by Lessee and its' employees. Such space shall
be at locations designated by City in common with other air-
port employees and the use thereof shall be provided at same
charge per month as established for other airport employees.
Section 1.03 - Description of Privileges, Uses and Rights.
Lessee shall be entitled, in common with others authorized so to do, to the
general use of all public airport facilities and improvements which are now 'or
may hereafter be connected with or appurtenant to the Airport, except as
hereinafter provided. For the purpose . of this lease, "public airport facili-
ties" shall include, but not be limited to, approach areas, runways, taxiways,
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f '
aprons, aircraft parking areas, roadways, sidewalks, navigational and aviga-
tional aids, lighting facilities, terminal facilities, or other public facilities
appurtenant to the Airport.
Lessee's use of said public airport facilities shall be for the sole purpose
of operating a transportation system by aircraft for the carriage of persons,
property, and cargo, (hereinafter referred to as "Air Transportation'), which use,
without limiting the generality hereof, shall include:
(A) The handling, ticketing, billing and manifesting of passengers,
baggage, and cargo, in air transportation by Lessee or on be-
half of any other certificated passenger air transportation com-
pany having a valid lease with.City.
(B) The repairing, maintaining, conditioning, servicing, testing,
parking or storage of aircraft or other equipment operated by
Lessee, or of any other other certificated passenger air trans-
portation company. Such right and the rights referred to in
Subparagraphs (C) and (D) below shall not be construed as
authorizing the conduct of a separate business by Lessee, but
shall permit Lessee to exercise such rights only in connection
with its conduct of air transportation.
(C) The training on the Airport of personnel in the' employ of or to
be employed by Lessee or any other certificated passenger air
transportation company.
(D) The sale, lease, transfer, disposal or exchange of Lessee's
aircraft engines, accessories, and other equipment or supplies..
Said right shall include the sale, lease, transfer or disposal of
any article or goods used by or bought for use by Lessee in con-
nection with its conduct of air transportation; provided however,
that Lessee shall not:
(1) Sell food or beverages, except for consumption by
passengers on the aircraft and as provided in Sub-
paragraph (I) of this Section 1. 03 and with the further
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exception that food and beverages may be provided by
Lessee to its passengers in its exclusive leased VIP
or Clubrooms.
(2) Sell gasoline, fuel, propellants, greases or other
lubricants except when said products are of a particu-
lar grade desired by others and are not otherwise a-
vailable (except to other certificated passenger air,
transportation companies) at the Airport.
(E) The servicing by Lessee's employees or others under control of
Lessee of aircraft and other equipment operated by Lessee on the
apron, by truck or otherwise, with gasoline, oil, greases, lubri-
cants and any other fuel or propellant or other supplies required-
by
equired-by Lessee. All of which shall include, without limiting the general-
ity hereof, the right of Lessee to install and maintain on the Airport
subject to terms and conditions mutually agreeable to the parties
hereto adequate storage facilities for such gasoline, oil., greases,
lubricants and other fuel or propellant or supplies, together with
the necessary pipes, pumps, motors, filters and other appurte-
nances incidental to the use thereof, and the installation and main-
tenance of piPes in connection with such facilities as well as a
pipeline or lines between Lessee's source of supply and said stor-
age facilities. Lessee shall submit to City for its written approval
complete written plans and specifications for such storage facilities
prior to installation. Lessee's exercise of its rights hereunder
shall be subject to the execution by the parties hereto of a separate
lease on such terms, conditions and consideration, as may be mu-
tually agreed upon. In connection with the execution of any such
lease, City now agrees and hereby becomes obligated to make avail-
able for Lessee's use adequate and convenient rights-of-way on the
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(F)
(G)
,i ,
Airport for said pipelines; provided, however, that Lessee shall
be responsible for the cost of. all excavation, resurfacing, con-
struction, installation, maintenance and operation thereof and
further provided that Lessee shall restore the surface- of the
Airport. In the event Lessee discontinues the use of said storage
facilities or pipelines, Lessee agrees to remove said storage faci-
lities. or pipelines and restore the surface of the Airport affected
by such removal to their original condition to the satisfaction of
the City.
The landing, taking off, flying, taxiing, towing, parking, loading
and unloading of Lessee's aircraft or other equipment operated by
Lessee, used in the operation of scheduled, shuttle, courtesy, test,
training, inspection, emergency, special charter, sight-seeing and
other flights. All of which shall incidentally include, without limit-
ing the generality hereof, the right to load and unload Lessee's
aircraft, or the aircraft of any other certificated passenger air
transportation company having a valid lease with City, adjacent
to a convenient entrance to the terminal building at loading gates
located on the loading apron at points to be designated by City;
provided, however, that flights carrying cargo or freight only
shall load and unload at convenient and accessible points to be
designated by City. `
The loading and unloading of property, and cargo, at said Airport
by such motor vehicles or other means of conveyance as Lessee
may desire or require in the operation of its air transportation
system, with the right to designate the particular carrier or car-
riers who shall regularly transport Lessee's property, and cargo,
to and from the Airport.
The right to install, maintain and operate, for its own use, either
by Lessee alone, or by Lessee in conjunction with others who are
Lessees at the Airport, or through a nominee, a message system
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or other communication systems between suitable locations.
The installation, maintenance and operation of a message/
communication system shall be without cost td City, and subject
to reasonable rental payments by Lessee to the City for any space
used, as well as the prior written approval of City as to location,
plans and specifications.
(I) The right to provide food and beverages for consumption aloft by
passengers -and crews of Lessee or by passengers and crews of any
other certificated passenger airline or for consumption by said
passengers and crews grounded at the Airport because of weather
or mechanical conditions. Such food and beverages may be served
in Lessee's exclusive space when such food and beverages were
originally .scheduled to be served to such passengers and crews
aloft. Except to the extent hereinabove specifically provided, nothing
in this Subparagraph (I) shall be deemed to give -Lessee the right
on the Airport to maintain or operate a cafeteria, restaurant,
vending machines, bar or cocktail lounge for the purpose of selling
or in any manner otherwise providing for the sale of food or beverages
to the public.
(J) The right to place or replace existing signs identifying Lessee's
J.
business on and in the terminal building. Said signs shall be
substantially similar to existing signs as to size, type and location.
A change in existing signs as to number, general type, size, design,
and location shall be subject to the written approval of City prior
to installation. Such installation and operation shall be without cost
to City.
(K) The right to install, maintain and operate by Lessee alone, by
Lessee in conjunction with any other certificated passenger air
transportation companies who are lessees at the Airport, or through
a nominee, such radio communications, meteorological and aerial
navigation equipment and facilities in or on premises leased exclu-
sively to Lessee, without cost to the City and subject to the written
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approval of City as to location, method and type of installation prior
to installation.
(L) The right, except as. herein otherwise specifically provided, to
purchase or otherwise obtain personal property of any'nature
(including, but not limited to, gasoline, fuel, propellants, lubri-
cating oil, grease, food, beverages and other materials, equip-
ment :and supplies) deemed by Lessee necessary or incidental to
its operations, its exercise of the rights herein granted and its
discharge of the obligations herein imposed. Said purchases may
be made through any person, partnership, firm, association or
corporation lessee may choose.
t
(M) The rights and privileges granted the Lessee under Subparagraph
(E), (G), (H), and (K), of this Section 1. 03 may be exercised by
Lessee for and on behalf of any other certificated passenger air
transportation company of by or through a nominee of Lessee.
Said nominee shall be subject to the. prior written approval of the
City. It is specifically ,provided, however, that any such nominee
shall have no greater rights than Lessee hereunder.
Section 1.04 - Rights and Privileges Specifically Excluded.
Except as specifically provided for in Section 1. 03, nothing herein shall be deemed
to give Lessee any right or permission to sell at the Airport any goods or services
to the public, other than related air transportation services. This prohibition
includes, without limiting the generality of the foregoing, insurance sales except
when not otherwise available to the Airport.
Section 1.05 - Right of Ingress and Egress.
City hereby grants the right of ingress to and egress from but not the use of,
except as provided in this lease, the Leased Premises and facilities referred to
in Sections 1.01 and 1.02 for Lessee, its. employees, agents, passengers,
guests, patrons, its suppliers of materials or furnishers. of service, its air-
craft, equipment, vehicles, machinery and other property. Said rights shall be
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subject to such ordinances, rules and regulations not modifying or in conflict
with'this lease as may now or hereafter have application at the Airport and
shall be without charge, except as herein otherwise provided.
ARTICLE II
TITLE TO LESSEE
Section 2.01 - Installed Improvements and Property.
All improvements, equipment and other property bought, installed, erected or
placed by Lessee in, on or about the Airport and the Leased Premises shall be
deemed to be personalty and remain the property of Lessee, except as may con-
stitute fixtures attached to the building or premises, which if removed would
damage or impair the use of such building or premises.
ARTICLE III
OBLIGATIONS OF CITY
Section 3.01 - Right to Lease Property.
City represents that it has the full right to lease that portion of the Airport re-
ferred to herein, together with all the premises, .facilities, rights, licenses,
services and privileges herein granted, and has full power'and authority to enter
into this lease in respect thereof.
City further represents that all things have happened and been done to make
its granting of this lease effective and City warrants to Lessee peaceful posses-
sion and quiet enjoyment of the Leased Premises, appurtenances, facilities,
rights, license and privileges during the term hereof, upon performance of
Lessee's covenants herein.
Section 3.02 - Maintenance and Operation of Airport.
Except as otherwise specifically provided herein, City shall, during the term
of this lease, operate, maintain and keep in good repair the terminal building,
terminal apron and all public airport facilities and services *now or hereafter
connected with the Airport, which City has agreed to furnish and supply here-.
under. City shall not, however, be required to perform maintenance and make
repairs occasioned by the negligence of Lessee or its employees, agents, ser-
vants, patrons, and invitees, in which case City may perform such maintenance
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subject to such ordinances, rules and regulations not modifying or in conflict
with'this lease as may now or hereafter have application at the Airport and
shall be without charge, except as herein otherwise provided.
ARTICLE II
TITLE TO LESSEE
Section 2.01 - Installed Improvements and Property.
All improvements, equipment and other property bought, installed, erected or
placed by Lessee in, on or about the Airport and the Leased Premises shall be
deemed to be personalty and remain the property of Lessee, except as may con-
stitute fixtures attached to the building or premises, which if removed would
damage or impair the use of such building or premises.
ARTICLE III
OBLIGATIONS OF CITY
Section 3.01 - Right to Lease Property.
City represents that it has the full right to lease that portion of the Airport re-
ferred to herein, together with all the premises, .facilities, rights, licenses,
services and privileges herein granted, and has full power'and authority to enter
into this lease in respect thereof.
City further represents that all things have happened and been done to make
its granting of this lease effective and City warrants to Lessee peaceful posses-
sion and quiet enjoyment of the Leased Premises, appurtenances, facilities,
rights, license and privileges during the term hereof, upon performance of
Lessee's covenants herein.
Section 3.02 - Maintenance and Operation of Airport.
Except as otherwise specifically provided herein, City shall, during the term
of this lease, operate, maintain and keep in good repair the terminal building,
terminal apron and all public airport facilities and services *now or hereafter
connected with the Airport, which City has agreed to furnish and supply here-.
under. City shall not, however, be required to perform maintenance and make
repairs occasioned by the negligence of Lessee or its employees, agents, ser-
vants, patrons, and invitees, in which case City may perform such maintenance
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or make such repairs as necessary and charge the cost of same to Lessee, pro-
vided Lessee has failed to perform such maintenance or make such repairs
within a reasonable time after a request in writing from City so to do.
City shall keep the Airport free from obstructions, including the clearing
and removal of grass, stones, snow and ice, or other foreign matter as rea-
sonably necessary and with reasonable promptness from the runways, taxiways
and loading areas in order to insure the safe, convenient and proper use of the
Airport by Lessee. City shall maintain and operate the Airport in all respects
in a manner at least equal to the standards or rating issued by the Federal
Aviation Administration for airports substantially similar in size and character
and in accordance with all rules and regulations .of the Federal Aviation Admini-
stration and any other governmental agency having jurisdiction thereof.
Nothing herein contained shall be deemed to require City to enlarge .the
Airport or to make the extensions. or additions to the landing areas, runways,
taxiways or other appurtenances of the Airport. It is further understood and '
agreed that City may abandon certain facilities which are no longer reasonably
justified for proper and adequate operation of the Airport.
The obligations assumed by City under this Article III shall not obligate
City, except as provided in Article X hereof, to repair or rebuild any of said
facilities at said Airport in the event of damage by the elements, fire, explosion,
or other causes beyond the control of City. City shall keep the public and pas-
senger space in the terminal building adequately supplied, equipped, furnished
and decorated and shall operate or cause to be operated adequate directional
signs in said spaces and in all other public spaces on the Airport. Said signs
shall include, but not be limited to, signs indicating the location cf all public
restaurants, rest rooms, newsstands, telegraph offices, baggage counters and
all other facilities for passenger or public use in the terminal building or else-
where on the Airport. City shall provide and supply adequate heat, conditioned
.air, light and water for the public and passenger space in the terminal building.
City shall also provide and supply adequate lighting for vehicular parking
spaces and aircraft loading ramp and adequate field lighting including, without
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limiting the generality hereof, landing lights and beacons.
City shall also provide janitors and other cleaners necessary to keep the
public and passenger space, including that exclusive leased area in front of the
ticket counters, and the landing area of the Airport clean, neat, orderly, sani-
tary and presentable at all times.
Section 3.03 - Maintenance and Services in Lessee's Exclusive Space.
City shall be responsible for and shall perform exterior building maintenance
and structural maintenance throughout the Leased Premises and, at no additional
charge, provide the following services to Lessee in the Leased Premises:
(A) Building heat and air conditioning (during the period of the
year when such service is provided in the public areas of the
terminal building).
(B) Exterior window washing at periodic intervals, as required
to provide a clean attractive appearance.
(C) Maintenance of mechanical and electrical systems installed by
City, excluding relamping behind and above ticket counter and
office areas.
Section 3.04 Governmental Facilities. .
It is expressly agreed that if funds for the provision; maintenance and operation
of the Control Tower, Instrument Landing System, and/or other air navigation
aids or other facilities required or permitted by the United States Government
and needed by Lessee or Lessee's operation at the Airport and which are now or
may hereafter be furnished by the United States Government are discontinued by
the United States Government, City shall not be required to furnish said facilities.
Section 3.05 - Restaurants.
City agrees to provide space in the terminal building for a restaurant or coffee
shop for the purpose of selling food and beverages to the general public. City
agrees to require the operator of said restaurant or Coffee shop to furnish
employees of Lessee and air passengers food and beverages of good quality and
reasonable rates.
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ARTICLE IV
OBLIGATIONS OF LESSEE
Section 4. 01 - Maintenance of Leased Premises.
Except for exterior building and structural maintenance by City, as provided in
Section 3.03,. Lessee shall be obligated, without cost to City, -to maintain its
exclusive Leased Premises and every part thereof including, but not limited to,
the Counter shell and the outbound baggage system in good order, repair and
safe condition.
Lessee shall, at its own expense, provide janitorial services in the Leased
Premises. Said services may be provided by lessee alone, by Lessee in con-
junction with other certificated passenger air transportation companies who may
hereafter be lessees at the Airport, or a nominee of Lessee who shall be approved
by the Director of Aviation.
Lessee shall relamp light fixtures as necessary, and shall repaint the in-
terior of the Leased Premises as necessary but not less than once every three
years. All such maintenance, repairs, and replacements shall be of quality
equal to the original condition in materials and workmanship. All paint colors
or schemes shall harmonize with the decor of the passenger terminal area sub-
ject to the prior approval of Director of Aviation.
Section 4. 02 - Porter Service.
Lessee may, at its option, provide porter service for the convenience of its
passengers in and adjacent to the baggage claim area of the terminal building.
Said service may be provided by Lessee alone,. by Lessee in conjunction with
other certificated passenger air transportation companies who may hereafter
be Lessees at the Airport, or a nominee of Lessee who shall be approved by the
Director of Aviation.
Section 4. 03 - Alterations, Additions or Replacements.
During the term of this Lease, Lessee shall make no alterations, additions, or
replacements in the leased premises without the prior written approval of City.
Lessee shall likewise obtain prior approval from City before installing, at
its own expense, any additional equipment which requires new electrical or plumb-
iho connections or changes in those already installed on the Leased Premises.
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Section 4.04 - Removal and Demolition.
Lessee shall not remove or demolish, in whole or in part, any improvements
that already exist on the Leased Premises without the prior written consent of
City which may, at its discretion, condition such consent upon the obligation of
Lessee to replace the same improvements specified in such consent upon termi-
nation of this lease. City shall not withhold consent -unreasonably and shall not
impose unreasonable condition in its consent.
Section 4.05 - Trash and Garbage.
Lessee shall provide at its expense 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 its operations on the Airport.
Lessee shall provide and use suitable covered metal receptacles for all gar-
bage, trash and other refuse on or in connection with Lessee's areas. Piling
of boxes, cartons, barrels or other similar items in an unsafe manner in or
about Lessee's premises shall not be permitted.
Section 4. 06 - Taxes and Licenses.
Lessee shall pay all taxes of whatever character that may be lawfully levied or
charged upon Lessee's Leasehold improvements or operations hereunder and
upon Lessee's rights to use the Leased Premises. Lessee shall obtain and
pay for all licenses or permits necessary or required by law for the construction
of any additional improvements, the installation of equipment and furnishings,
and any other licenses necessary for the conduct of its air transportation ser-
vices. City shall assist Lessee where necessary in obtaining said permits.
Section 4: 07 - Rules and Regulations.
In conducting its operations hereunder, Lessee shall comply with all applicable
laws of the United States of America and the State of Texas; the rules and regu-
lations promulgated by their authority with reference to aviation and air naviga-
tion; and all reasonable and applicable rules, regulations and ordinances of City
now in force or hereafter prescribed or promulgated by authority or by law.
Provided that such rules and regulations of the City shall not be inconsistent
with the terms of this agreement.
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ARTICLE V
' TERM
Section 5.01 - Term.
The term of this .Lease shall be for a period of nineteen (19) years commencing
on the 11th Jay of Anr'i 197_ or date of benefi-
cial occupancy subject, however, to earlier termination as hereinafter provided
under Article XI and to renegotiation of the Maintenance and Operation portion
of the rentals and fees hereinafter provided ninety (90) days prior to the third
anniversary year of this Lease. In the event that no written demand for rene-
gotiation is made by either party at least ninety (90) days prior to the third
anniversary year, the rentals and fees then current shall apply for the succeeding
three-year period.
ARTICLE VI
RENTALS AND FEES
Section 6.01 Rental for Exclusive Terminal Building Space.
Rental for the leased premises in the terminal building as described in Section
1.01, shall be as follows:
Exclusive Area:
3,660 Sq. Ft. of exclusive leased space at the rate of
$8.25 per sq. ft. per year or $ 30. 195.00
per year. It is understood and agreed that the Square Footage stated is an
estimate, and Lessor and Lessee are obligated and hereby agree to jointly mea-
sure the actual space,occupied on or before six months after occupancy and
make the necessary rental rate adjustments which will be retroactive to the
beneficial occupancy date, and further agree that any credits or additional rental
due will be applicable to the next subsequent monthly rental. The aforesaid ren-
tal rate of $8.25 is broken down as follows: $5.63 fixed fee to cover debt ser-
vice and $2.62 for maintenance and operation. The $2.62 Maintenance and Opera-
tion portion is subject to adjustment everythree years to reflect actual cost,
however, in no event shall it exceed the CPI changes for the same three year
period.
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Section 6.02 - Landing Fee
The fee for the use of the landing area and facilities necessary therefor as granted
hereunder, except those for which rentals are specifically provided elsewhere
herein, shall be as follows:
25 cents effective October 1, 1976
30 cents effective October 1, 1979
32.5 cents effective October 1, 1981
35 cents effective October 1, 1983
40 cents effective October. 1, 1986.
45 cents effective October 1, 1989
50 cents effective October 1, 1992
per 1, 000 pounds of the approved maximum gross landing weight
of each actual flight operated.
Lessee shall file with the City,, acting by and through its Director of Avia-
tion, not later than the fifth' day of each month.s Lessee's. actual landings at the
airport for.the preceding month, which shall include the number and .type of air-
craft making such landings.
The- term "approved maximum -gross landing weight" for any aircraft, as
used herein, :'shall be the.maximum landing weight approved by the Federal
Aviation Administration for landing_ruch aircraft at the airport. Lessee shall
provide the City such "approved maximum gross landing weights" for each type
of aircraft it operates at the airport.
Five hundred (500) pounds or any larger part of one thousand (1, 000) pounds
shall be counted as if a whole one thousand (1, 000) pounds and any smaller part
shall be disregarded.
Section 6.03 - Rental for Common Use Area,
A. Common Bag Claim Area
The bag claim area comprises a total of approximately 8,316
sq. ft., as shown on Exhibit B attached hereto and by the reference made a part
hereof and the air carriers have jointly agreed to accept responsibility for pay-
ment of rent on one-half the bag claim area, since one bag claim device is being
installed at this time and shall be charged jointly to all certificated passenger
air transportation companies which now or may hereafter have valid leases at
the Airport at the rate of $8. 25 per sq. ft. per year or $ 34, 303.50 per year.
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It is understood and agreed that the Square Footage stated is an estimate, and
Lessor and Lessee are obligated and hereby .agree to jointly measure the actual
space occupied on or before six months after occupancy and make the necessary
rental rate adjustments which will be retroactive to the beneficial occupancy
date, and further agree that any credits or additional rental due will be applicable
to the next subsequent monthly rental.
Lessee, in conjunction with other certificated passenger air transportation
companies which now or may hereafter have valid leases at the airport, shall
provide City in writing a schedule of the pro rata rental due by each Lessee
hereunder and Lessee agrees to pay its stated pro rata amount monthly. The
pro rata schedule so furnished to City shall remain in effect until such time as
City is provided a revised schedule of the pro rata rental amounts executed by
all said Lessees which revised schedule shall remain in effect until similarly
modified.
The aforesaid rental rate of $8.25 is broken down as follows: $5. 63 fixed
fee to cover debt service and $2.62 for maintenance and operation. The $2.62
Maintenance and Operation portion is subject to adjustment every three years to
reflect actual cost, however, in no event should it exceed the CPI changes for the
same three year period.
B. Common Boarding Lounge Area
The common boarding lounge area comprises a total of approximately
27,284 sq. ft. as shown on Exhibit B attached hereto and by this reference made
a part hereof shall be charged jointly to all certificated passenger air transpor-
tation companies which now or may hereafter have valid leases at the airport at
the rate of $2.62 per sq. ft. per year or $ 71.484.08 per year. It is
understood and agreed that the Square Footage stated is an estimate, and Lessor
and Lessee are obligated and hereby agree to jointly measure the actual space
occupied on or before six months after occupancy and make the necessary rental
rate adjustments which will be retroactive to the beneficial occupancy date, and
further agree that any credits or additional rental due will be applicable to the
next subsequent monthly rental.
Lessee, in conjunction with other certificated passenger air transportation
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companies which now or may hereafter have valid leases at, the Airport, shall
provide City in writing a schedule of the pro rata rental due by each Lessee
hereunder and Lessee agrees to pay its stated pro rata amount monthly. The
pro rata schedule so furnished to City shall remain in effect until such time as
City is provided a revised schedule of the pro rata rental amounts executed by
all said Lessees, which revised schedule shall. remain in effect until similarly
modified.
The aforesaid rental rate of $2.62 covers the maintenance and operation
and is subject to adjustment every three years to reflect actual cost, however,
in no event shall it exceed the CPI changes for the same three year period.
Section 6.04 - Rental for Public Address System.
Lessee shall pay a rental rate of $5.00 per month per microphone connection
located in the exclusive leased area or common lease area. The rental rate
per month will be adjusted when required to reflect the charges imposed on the
City to provide this service.
The microphones located in the common leased area will be in conjunction
with other certificated passenger air transportation companies which now or
may hereafter have valid leases at the Airport, shall provide City in writing a
schedule of the pro rata rental due by each Lessee hereunder and Lessee agrees
to pay its stated pro rata amount monthly. The pro rata schedule so furnished
to City shall remain in effect until such time as City is provided a revised sche-
dule of the pro rata rental amounts executed by all said Lessees which revised
schedule shall remain in effect until similarly modified.
Section 6.05 - Aircraft Storage.
City shall have the right to designate apron parking areas for the storage of
Lessee's aircraft.
Section 6.06 - Time of Payment.
Lessee agrees to pay City the rentals and. fees due hereunder at such place as
City may from time time designate. All rentals and fees shall be payable in
monthly installments covering the preceding calendar month of operation.
In the event that the commencement or termination of this Lease falls on
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any date other than the first or last day of a calendar month, the applicable
rentals, fees and charges (except landing fees) for that month shall be paid on
a pro rata basis according to the number of days during which said particular
premises, facilities, rights, 'licenses, services and privileges were enjoyed.
City shall,- after the end of each calendar month, transmit to Lessee a
statement of the rentals, fees and charges incurred by -Lessee during said month
as hereinabove provided. Payment shall be made by Lessee within thirty (30)
days after receipt of such statement.
Section 6.07 - Default for Failure to Pay Rentals, Fees and Charges.
It is expressly agreed that time of payment of the rentals and fees hereinabove
provided is of the essence in this entire Lease. Therefore, if Lessee fails to'
pay any rentals, charges and fees due hereunder within thirty (30) days after
City transmits a statement therefor to Lessee, City may, at its option, upon
fifteen (15) days written notice to Lessee (unless in such fifteen -day period
Lessee shall have corrected such failure to pay) immediately or at any time
thereafter, enter into and upon the Leased Premises, or any part thereof in
-the name of the whole, and repossess said premises. In said event, City may
expel Lessee and those claiming by, through or under it and remove its effects
forcibly, if necessary, without being deemed guilty of trespass and without pre-
judice to any remedy which otherwise might be used for arrears of rent or pre-
ceding breach of covenant. Upon such re-entry this Lease shall terminate.
ARTICLE VII
READJUSTMENT OF RENTALS, FEES, AND OTHER CHARGES
Section 7.01 - Basis for Readjusting Charges.
Three (3) calendar years after the effective date of this lease, charges for the
use of any one or all of the premises and facilities leased hereunder for the
succeeding three-year period shall be subject to renegotiation upon written
notice by either party hereto ninety (90) days prior to the beginning of the next
three-year period. Either party giving notice shall, at the time, furnish the
other party with a reasonably detailed statement supporting the proposed adjust-
ment.
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0
The following factors, among others, shall be considered in determining
adjustment of rental,' fees and other charges:
(A) The actual costs during the preceding three-year rental period
of providing the buildings or facility, charges for the use of
which are made the basis of the adjustment, and the actual reve-
nue derived therefrom during said period. For this purpose, any
and all revenue, including concession revenue applicable to said
buildings and facility, shall be included..
(B) City's estimated costs for the succeeding three-year period of pro-
viding the buildings or facility, charges for the use of which are
made the basis of the adjustment. Such estimate shall take into
account:
(1) The actual costs as shown by City's books.
(2) The necessary increased costs resulting from:
(a) Technical advances requiring additional expenditures
by City.
(b) Expenditures incurred by City pursuant to orders or
requirements of governmental authority.
(c) Additional expenditures of City required for the pru-
dent operation of the buildings or facility, charges for
the use of which are made the subject of the adjustment.
(3) Extraordinary expenditures for maintenance and renewals and
replacements. Such expenditures shall'be equalized over a
reasonable period of succeeding years.
(C) Buildings and facilities, the charges for the use of which are made
the basis for the adjustment pursuant to this Article VII shall be
the following:
(1) Passenger terminal building means the building proper, inclu-
ding vehicular parking space and roadways in connection there-
with. There shall be included all concessions operated in or
in conjunction with the passenger terminal building, such as,
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. •
but not limited to, restaurant, cocktail lounge, baggage,
newstands, ground transportation of passengers, auto-
mobile parking, and all other building and area conces-
sions and operations in the passenger terminal area.
(2) Aircraft storage shall mean the areas, other than hangars,
designated by City for storage of aircraft .
(3) Any other buildings, appurtenances, facilities or services,
requested by Lessee or City and not covered by separate
agreement.
(D) In the event a governmental order or requirement results in
increased costs, Lessee shall be advised and shall have an oppor-
tunity to oppose same, if it desires.
(E) The depreciation of the City's investment and/or the annual debt
service requirements on all bonds issued and outstanding at the
time of the adjustment.
(F) In allocating costs and revenues to the various facilities as here-
inabove defined, City will observe sound accounting principles and
shall include interest charges which are no greater than the maximum
of those paid by the City on bond issues or other loans for Airport
purposes.
Section 7. 02 - Costs Excluded.
Costs of facilities and improvements paid for by Federal or State gifts or grants-
in-aid, and depreciation, amortization and interest charges thereon, shall not
be included in the cost factors herein.
ARTICLE VIII
RIGHTS AND PRIVILEGES RESERVED BY CITY
Section 8.01 - Right to Charge Use Fees to Others.
Nothing in this Iease shall be deemed to restrict in any manner City's right to
charge any person, partnership, firm, association or corporation fees and rent-
als for the use of City's property or any improvements thereon where such use
of said property or improvements is of a regular or perman,:int nature, as dis-
tin-ruished from a temporary or transitory nature, or where such use is of
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W
such a nature as to constitute the performance of a commercial business at
the Airport. In addition, City shall have the right to charge persons, partner-
ships, firms, associations or corporations a fee no less than that set forth in
mutual assistance ground services agreement approved by CAB, and ar; revited
from time to time. This fee shall be applicable to, but not limited to, fees for
ramp use, jetway use, gate use, training flights and aircraft storage, and land-
ing fees which shall never be less than 125% of the landing fee charged Lessee
as set out in Section 6.02 hereof.
Section E. 02 - Right to Improve and Protect the Airport.
In addition to any other rights herein retained by it, City specifically reserves
the following privileges:
(A) The right to further develop or improve the landing area and other
portions of the Airport as it deems necessary, regardless of the
desires or views of Lessee and without interference or hindrance
therefrom. If feasible, such improvements shall be made in a
manner which will cause Lessee as little inconvenience as possible.
(B) 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 to
be erected any building or other structure on the Airport which, in
the opinion of City, would limit the usefulness of the Airport or con-
stitute a hazard to aircraft.
(C) The right during the time of war or national emergency to lease .
the Airport or any part thereof to the United States Government for
military use. In the event any such lease is executed, the privileges
of this instrument insofar as they are inconsistent with the privileges
of the Lease to the government shall be suspended.
ARTICLE .IX
INDEMNIFICATION, INSURANCE AND BONDS
Section 9.01 - Indemnification, Etc.
The parties agree that Lessee is and shall always be deemed to be an independent
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contractor and operator and not an agent or employee of City with respect to its
acts or omissions hereunder.
Lessee shall indemnify fully and save harmless City, its officers, agents
and employees from any and all claims and actions and any and all expenses
incidental to the investigation and defense thereof, based upon or arising out of
damages or injuries to third persons or their property, caused by the fault or
negligence of Lessee, its agents or employees in the use or occupancy of the
premises and privileges hereunder. Provided, however, that the City shall
indemnify fully and save harmless Lessee, its officers, agents, and employees
from any and all claims and actions and any and all expenses incidental to the
investigation in defense thereof based upon or rising out of damages or injuries
to third persons or their property caused by the fault or negligence of the City,
its agents and employees, or rising out of or as a result of the condition of any
of the publicly used premises in or about said airport. City shall give to Lessee
prompt and reasonable notice of any claims or actions against it and failure to
so notify Lessee shall relieve Lessee of its obligations to indemnify the City
therefor. Lessee shall have the rights to investigate, compromise and defend
any such claims or actions to the extent of its own interest.
Section 9.02 - Insurance.
Lessee shall procure and keep in effect at all times during the term of the Lease,
the forms] of insurance set forth in this Section 9.02. All policies or certificates
shall contain a provision that written notice of cancellation or of any material
change in said policy by the Insurer shall be delivered to City thirty (3 0) days
in advance of the effective date thereof. All policies shall contain an agreement
on the part of the respective insurers, waiving the right of such insurers to sub-
rogation.
Lessee shall maintain all insurance hereunder with insurance underwriters
authorized to do business in the State of Texas satisfactory to City. All policies
shall name City, its officers, servants, agents, and employees as additional
insureds. Lessee shall furnish City with certificates from the insurance carrier
showing all insurance *required hereunder to be in full force and effect during
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I IF
the entire term of this Lease or shall deposit with City certified copies of
said policies.
(A) - Fire Insurance - Lessee shall insure for fire and extended coverage
risks all Lessee's improvements on the Leased Premises. Such
insurance shall be in an amount equal to the full insurable replace
-
went value of such improvements.
All fire insurance policies shall contain loss payable endorsements
in favor of the parties as their respective interests may appear
hereunder. City agrees that any payments received from such
insuring companies by reason of loss under such policy or policies
shall be applied toward repair and reconstruction of said Leasehold
improvements.
(B) Public LiabdItty and Property Damage Insurance - Promptly after
the execution of this Lease, Lessee shall provide comprehensive
general liability insurance in protection of City, its officers, agents,
and employees. Lessee shall provide public liability insurance for
personal injuries or death growing out of any one accident or event
in a minimuin sum of One Hundred Thousand Dollars ($100, 000.00)
for one person and Two Million Dollars ($2;.000, 000. 00) for any one
accident, and in addition, -'shall provide property damage liability
insurance in a minimum sum of Two Hundred Fifty Thousand Dollars
($250, 000.00) for property damage growing out of any one accident
or event. Insurance coverages required of Lessee shall be subject
to adjustment from time to time to comply with any changes in
minimum requirements determined necessary by City.
ARTICLE X
DAMAGE OR DESTRUCTION OF LEASED PREMISES
Section 10.01 - Partial Damage.
If the Leased Premises are partially damaged by fire, explosion, the elements,
the public enemy, or other casualty, but not rendered untenantable, the same
will be repaired with due diligence by City at its own cost and expense; provided,
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however, that if the damage is caused by an act or omission of Lessee, its
sublessees, agents, or employees, Lessee shall be responsible for repairing
said Premises and shall pay the cost therefor.
Section 10.02 Extensive Damage.
If the damage shall be so extensive as to render .the Leased Premises untenant-
able, but capable of being repaired in thirty (30) days, the same shall be repaired
with due diligence by City at its own cost and expense, and the rent payable
-herein with respect to Lessee's exclusive space shall be paid proportionately
to the time of such damage and thereafter cease until such time as the Premises
are fully restored, provided, however, that if the damage is caused by an act
or omission of Lessee, its sublessees,. agents or employees, Lessee shall be
responsible for repairing said Premises and shall pay the costs therefor.
During any such period where Lessee repairs said Premises under the terms
of this paragraph, the usual rental shall be payable.
The abatement of rental for the Leased Premises, as aforesaid, shall not
be construed as a waiver of other fees due and payable under the terms of
Article VI.
Section 10.03 - Complete Destruction.
In the event the Leased Premises are completely destroyed by fire, explosion,
the elements, the public enemy or other casualty, or so damaged that they Twill
remain untenantable for more than -thirty (30) days, City shall be under no
obligation to repair and reconstruct said Premises, and rent payable hereunder
shall be paid proportionately to the time of such damage or destruction and shall
thenceforth cease until such time as the Premises are fully restored. If within
twelve (12) months after the time of such damage or destruction said Premises
shall not have been repaired or reconstructed, or other reasonable facilities
provided in lieu thereof, Lessee may give City written notice of its intention
to cancel this Lease in its entirety or to cancel as of the date of such damage
or destruction such part of this Lease as related to the Leased Premises.
Notwithstanding the foregoing,. if the leased premises and adjoining premises
are completely destroyed as a result of an act or omission by Lessee, City may,
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a
in its discretidn, require Lessee to repair and reconstruct the leased premises
and adjoining premises and pay the costs therefor. During any such period
where Lessee repairs said Premises under the terms of this Paragraph, the
usual rental shall be payable.
Section 10.04 - Right to Recover Damages.
Nothing in this Lease shall be construed as a waiver of the right of either City
or Lessee to recover damages from the other arising out of the fault or negli-
Bence of the other.
Section 10.05 - Limit of City's Obligations Defined.
It is understood that, in the application of the foregoing Section 10. 01, 10.02 and
10. 03, City's obligations shall be limited to repair or reconstruction of the ter-
minal building to the same extent and of equal quality as obtained at the commence-
ment of the operations hereunder. Redecoration and replacement of furniture,
equipment, and supplies shall be the responsibility of Lessee and any such re-
decoration and refurnishing/re-equipping shall be of equivalent quality to that
originally installed hereunder within Lessee's exclusive area.
ARTICLE XI
TERMINATION OF LEASE
CANCELLATION, ASSIGNMENT AND TRANSFER
Section 11.01 - Termination.
This Lease shall terminate at the end of the full term hereof, and Lessee shall
have no further right or interest in the Leased Premises, except as provided in
Article XII.
Section 11.02 - Cancellation by Lessee.
This Lease shall be subject to cancellation by Lessee after the happening of one
or more of the following events:
(A) The permanent abandonment of the Airport as an airline terminal
or the permanent removal of scheduled airline service from the
Airport.
(B) The lawful assumption by the United States Government, or any
authorized agency thereof, of the operation, control or use of the
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Airport, or any substantial part or parts thereof, in such manner
as substantially to restrict Lessee for a period of at least ninety
(90) days from operating thereon for the carrying of passengers,
cargo, and property.
(C) Issuance by any court of competent jurisdiction of an injunction in
any way preventing or restraining the use of the Airport or any part
thereof for Airport purposes, and the remaining in force of such in-
junction for a period of at least ninety days.
(D) The inability of Lessee to use for a period in excess of ninety (90)
days the Airport or any of the premises, facilities, rights, licenses,
services or privileges leased to Lessee hereunder, because of fire,
explosion, earthquake, or other casualty or acts of God or the public
enemy, provided that same is not caused by negligence or willful
acts or failure to act on part of Lessee.
(E)The, suspension, or substantial modification, for a period of ninety
(90) days or the revocation of the operating authority of the Lessee
to serve the Lubbock area through the Airport by final order of the
Texas Aeronautics Commission or other governmental agency, Fed-
eral or State, having jurisdiction over Lessee.
(F) Any failure or refusal by the Federal Aviation Administration to pre-
vent Lessee to operate into, from or through said airport such air-
craft •as Lessee may reasonably desire to operate.
(G) The default by City in the performance of any covenant or agreement
herein required to be performed by City and the failure -of City to
remedy such default for a period of ninety (90) days after receipt
from Lessee of written notice to remedy the same; provided, how-
ever, that no notice of cancellation, as above provided, shall be of
any force or effect if City shall have remedied the default prior to
the receipt of the Lessee's notice of cancellatign.
I •
Lessee may exercise such right of termination by giving City sixty (60) days
I
advance written notice at any time after the lapse of the applicable periods of time
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and this lease shall terminate as of that date. Rental due hereunder shall be
payable only to the date of said termination.
Lessee's performance of all or any part of this Lease for or during any
period(s) after a default by City of any of the terms, covenants, and conditions
herein contained to be kept by City shall not be deemed a waiver of any right on
the part of Lessee to cancel this Lease for any subsequent failure by City so to
perform, keep or observe any of the terms, covenants, or conditions hereof.
Section 11. 03 - Cancellation by City.
This Lease shall be subject to cancellation by City upon the happening of any one
of the following events:
(A) The filing by Lessee of a voluntary petition in bankruptcy.
(B) The institution of bankruptcy proceedings against Lessee and the
-adjudication of Lessee as a bankrupt pursuant to such proceedings.
(C) The taking by a court of competent jurisdiction of Lessee and its
assets pursuant to proceedings brought under the provisions of any
federal reorganization act.
(D) The appointment of a receiver of Lessee's assets.
(E) The divestiture of Lessee's estate herein by other operation of law.
(F) The abandonment by Lessee of its conduct of air transportation at
the Airport for a period of ninety (90) days.
(G) The default by Lessee in the performance of any covenant or agreement
herein required to be performed by Lessee (except rental payments for
which provision is made in Section 6. 07) and the failure of Lessee to
remedy such default for a period of sixty (60) days after receipt of
written notice by City to remedy same.
(H) The lawful assumption by the United States Government or any author-
ized agency thereof of the operation control or use of the Airport and
facilities, or any substantial part or parts thereof, in such manner
as substantially to restrict Lessee, for a period of at least ninety
(90) days, from operating thereon for the carrying of passengers,
cargo, and property.
(I) In addition to the foregoing, all rights, privile-es or interests
s
acquired hereunder by Lessee may, at the option of City and follow-
ing written notice of Thirty (30) days, be suspended or finally termi-
nated if such suspension or termination is found by City,- acting in
good faith, to be necessary to secure federal financial aid for the
development of the Airport or for the development or promotion of
aeronautical operation.thereon.
In any of the aforesaid events, City may take immediate possession of the
Leased Premises and remove Lessee's effects. Upon said entry, this Lease
shall terminate. Any rental due hereunder shall be payable to said date of
termination.
It is agreed that failure to declare this Lease terminated upon the default
of Lessee for any of the reasons set forth above or Section 6.07 shall not operate
to bar or destroy the right of City to declare this Lease nulland void by reason
of any subsequent violation of the terms of this Lease.
Section 11.04 - Notice of Termination..'
If any of the events enumerated in Sections 11.02 and 11.03 shall occur and
after due notice the defaulting party has failed to cure or correct same, the
complaining party may, at any time thereafter during the continuance of said
default, terminate this Lease by five (5) days notice in writing , such canceUa-
tion and termination to be effective upon the date specified in such notice.
Rental due shall be payable only to the date of cancellation.
Section 11.05 - Assignment and Subletting.
Lessee shall not sell, assign, or transfer this Lease or any part thereof and
shall not sublease all or any portion of the Leased Premises without the prior
written consent of City; provided, however, that Lessee may assign this Lease
to any corporation with which Lessee may merge or consolidate or which may
succeed to the air transportation business of Lessee.
ARTICLE XII
PROPERTY RIGHTS UPON TERMINATION
Section 12.01 - Lessee's Right of Removal.
Upon termination of this Lease for any reason, Lessee shall have the right for
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a period of sixty (60) days after the date of termination, to remove any or all of
its. property from the Airport; provided, however, that Lessee shall not be in
default in its payments to City hereunder and provided that Lessee shall restore
said premises to their original condition as of the beginning of occupancy, ordi-
nary wear and tear, damage by the elements, fire, explosion or other causes
beyond control of Lessee excepted.
Section 12.02 City's Rights at Termination.
Title to any and all property not removed by Lessee prior to the expiration of
the aforesaid sixty-day period shall vest in City; provided, however, that City
reserves the right to require Lessee to remove such improvements and property,
the cost of which shall be borne by Lessee in the event City removes same on
failure of Lessee to perform its obligation hereunder.
City also reserves the right to charge reasonable rental for the sixty-day
period of continued occupancy by Lessee; provided, however, that no charge
shall be made' to Lessee if Lessee shall remove its property from the Leased
Premises within the first thirty (30) days of said sixty-day period.
ARTICLE XIII
GENERAL PROVISIONS
Section 13.01 - Other Ordinances.
This Lease supersedes City Ordinance Number 2375 of the 6th day of December,
1957, and amendments thereto, pertaining to the rental rates and landing fees
at the Airport.
Section 13.02 - Arbitration.
In any event and notwithstanding any provisions made in this Lease, the parties
agree to submit to arbitration any question or dispute, except non-payment of
rentals, arising between said parties with respect to the interpretation of any
term, condition or _covenant herein contained or with respect to any matter of
compliance or noncompliance with the terms hereof. City and Lessee shall each
select one arbitrator and the two so chosen shall then select a competent a.-ld
disinterested third arbitrator; and the arbitrators together shall then consider
the question(s) or dispute(s) submitted to them in writing by the parties hereto.
The decision in writing of any two shall determine the particular question or
dispute under consideration. The parties hereto shall bear equally the expense
of Said arbitration.
Section 13.03 - Non Discrimination.
The Lessee, its agents and employees will not discriminate against any person
or class of persons by reason of age, sex, race, color, creed or national origin
in providing any services or in the use of any of its facilities provided for the
public, in any manner prohibited by Part 15 of the Federal Aviation Regulations.
The 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
Assurances.
Lessee agrees to not discriminate against any employee or applicant for
employment because of race, creed, color, age, sex 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 race,
creed, color,. age, sex or national origin. Such action shall include, but not be
limited to, employment, upgrading, demotion, or transfer, recruitment, layoff,
rates of pay or other forms of compensation, and selection for training, inclu-
ding apprenticeship.
Section 13. 04 - Rules and Regulations.
City shall have the right to and shall adopt from time to time and enforce rea-
sonable rules and regulations, which Lessee agrees to observe and obey, with
respect to the use of the Airport, public terminal building and appurtenances;
provided that such rules and regulations shall not be inconsistent with safety
and with rules, regulations, and orders of the Federal Aviation Administration
with respect to aircraft operations at the Airport, and with the procedures
prescribed or approved from time to time by the Federal Aviation Administration
with respect to the operation of Lessees aircraft at the Airport.
Section 13. 05 - Interpretation of Lease.
Nothing in this Lease shall be construed or interpreted in.any manner whatsoever,
as limiting, relinquishing, or waiving of any rights or ownership enjoyed by City
in the Airport property, or in any manner waiving or limiting its control over
the operation, maintenance, etc., of Airport property or in derogation of such
29
governmental rights as City possesses, except as is specifically provided for
herein.
Section 13.06 - Conformity of Lease.
In the event that City shall enter into a Lease, contract or agreement for use of
the Airport with any other certificated passenger air transportation company
having aircraft of substantially similar size as that operated by Lessee and
said Lease, contract or agreement contains more favorable terms, rights, or
privileges than this Lease, then the same shall be concurrently and automatically
made available to Lessee, at its option.
Section 13. 07 - Invalid Provisions.
In the event any covenant, condition or provision herein contained is held to be
invalid by any court of competent jurisdiction, the invalidity of any such covenant,
condition or provision shall in.no way affect any other covenant, condition or
provision herein contained; provided that the invalidity of such covenant, condition
or provision does not materially prejudice either City or Lessee in its respective
rights and obligations contained in the valid covenants, conditions or provisions
of this Lease.
Section 13.08 - Sponsor's Assurances.
This Lease shall be subject to the terms of the City's Sponsor's Assurances
Agreement as amended. City represents that none of the provisions of this
Lease violates any of the provisions of said Sponsor's Assurances, as amended.
Section 13.09 - Consent Not to be Unreasonably Withheld.
Whenever consent is required hereunder by either City or. Lessee, such consent
is not to be unreasonably withheld or to be delayed for an unreasonable period of
time.
Section 13. 10 - Redelivery of Premises.
Lessee shall, upon termination of this Lease, quit and deliver up the Leased
Premises to City peaceably, quietly and in• as good order and condition as the
same now are or may hereafter be improved by Lessee or City, reasonable use
and wear thereof excepted.
-30-
Section 13. 11 - Holding Over.
In the -event Lessee remains in possession of the Leased Premises after the
expiration of this Lease without any written renewal thereof, such holding over
shall not be deemed as a renewal or extesnion of this Lease, but shall create
only a tenancy from day to day which may be terminated at any time by City.
Section 13.12 - Federal Aviation Administration.
Whenever the tern "Federal Aviation Administration" is used in this Lease it
shall mean the Federal Aviation Administration created by the Federal Govern-
ment under the Federal Aviation Act of 1958, or to such other Federal Govern-
ment authority as may be the successor- thereto or be vested with the same or
similar authority. .
Section .13. 13 - Inspection.
City through its authorized agent shall have the right at all reasonable time to enter
upon the Leased Premises to inspect said Premises, to observe the performance
by Lessee of its obligations hereunder, and to do any act which City may be obli-
gated or have the right to do under this Lease.
Section 13.14 - Non Exclusive.
It is hereby agreed that nothing herein contained shall be construed to grant or
authorize the granting of an exclusive right prohibited by Section 308 of the
Federal Aviation Act of 1958, as amended, and City reserves the right to grant
to others the privilege and right of conducting any one or all of the aeronautical
activities listed herein, or any other activity of an aeronautical nature.
Section 13.15 - Lease Made in Texas.
This Lease has been made in and shall be construed in accordance with the laws
of the State of Texas.. .
Section 13.16 - Successors.
This Lease shall bind and inure to the benefit of any successor of City and any.
successor, assignee or sublessee of Lessee.
Section 13.17 - Headings.
The article and section headings contained herein are for convenience in reference
and are not intended to define or limit the scope of any provision of this Lease.
- 31 -
• r
Section 13.18 - Time of Essence.
Time is of the essence of this Lease.
Section 13.19 - Notices.
Notices to City provided for herein shall be sufficient if sent by registered
mail, postage paid, addressed to: Lubbock Regional Airport, Route 3
Box 389, Lubbock, Texas 79401
and notices to Lessee, if sent by registered mail, postage prepaid, addressed to:
President, Southwest Airlines'Company, 1820 Regal Row, Dallas, Texas
75235
or to such other addresses as the parties
may designate to each other in writing from time to time.
IN WITNESS WHEREOF, the Parties have hereunto set their hands this
7-S ay of A P al L 197 1
ATTEST:
Secretary, City of Lu ock
Dateg- 77
APPROVED AS TO FORM:
City Attorney
Date 26'- 7 7
ATTEST:
qST. S R�'t A&T
Date 41 -Li. hq
- 32 -
CITY OF LUBBOCK, TEXAS
.61 ;L
.S
--23 MAYOR, City of Lubbock
Date (jr- X --17
APPROVED AS TO TERMS AND
CONDITIONS:
Di ector of Aviation
Date
LESSEE
SGy?�Jw� ST (1 IRLINEf `a -
By j7LA-✓1
Name
PR�S�DEN'T
Title
Date y I2& 11)
•..•1k
LEASE ADDENDUM NO. 1
WHEREAS, the City of Lubbock as Lessor and Southwest Airlines Company
as Lessee entered into a Certificated Passenger Airline Lease on the 28
day of A f(«- 1977; and
WHEREAS;.: the parties to such Agreement desire to add an Addendum to such
Lease Agreement; NOW THEREFORE:
The Certificated Passenger Airline Lease entered into between the parties
stated hereinabove is hereby amended by adding thereto Addendum No. 1 which
shall read as follows:
Southwest Airlines Company as -Lessee hereby agrees to pay the landing
fees set forth in Section 6.02 of the original lease agreement and in addition
hereby agrees to guarantee to the Lessor, the City of Lubbock, the first full
year of the Lease Agreement minimum landing fees of
270..4 million pounds,,pamyis This shall be
at the rate of 25 cents per 1, 000 pounds of the approved maximum gross
landing weight of each actual flight operated at the rate effective October 1,
1976, as set forth in the original Lease Agreement.
EXECUTED this 2$ day of A Pa«. 1977.
ATTEST:
�; •r
Secretary, City of ubbock
Date 7�
APPROVED AS TO FORM:
City Attorney
Date 77
ATTEST:
rm�-.0 r -
CITY OF LUBBOCK, TEXAS
MAYOIT, City of Lubbock
Date L( • )d . 77
APPROVED AS TO TERMS AND
CONDITIONS:
Director of Aviation A`/
Date Y- ),,P,- 7 7
LESSEE
SOUTMvEST 410LI act lam.
By
P(ZET/OEN7
Title
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