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HomeMy WebLinkAboutResolution - 1492 - Lease Agreement - Aero Comms Inc - Building #32 & Adjacent Area, LIA - 09/22/1983JMS:js RESOLUTION 1492 - 9/22/83 I RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock a Fixed Base Lease Agreement between the -City of Lubbock and Aero Communications, Inc., which Agreement, attached herewith, 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 22nd day of September , 1983. /Z dwn� HENRY, 0 ATTEST: velyn Ga ga, FiMy S t y -Treasurer APPROVED AS TO CONTENT: Marvin Co fee, D for of Aviation APPROVED AS TO FORM: 04411 2OJLl vrr•� J ry M. Sherwin, Assistant City Attorney she a3 RESOLUTION 1492 - 9/22/83 FIXED BASE OPERATOR AGREEMENT RE SUIREF1 THIS LEASE AGREEMENT, made this 22nd day of September , 19 83, by and between the City of Lubbock, Texas, acting by and through its Mayor, hereunto duly authorized, (hereinafter referred to as "LE.SSOR") and Aero Communications, Inc., a corporation incorporated under the laws of the State of Texas, with its principal office at Lubbock, Texas, (hereinafter referred to as "LESSEE"). WITNESSETH WHEREAS, LESSOR owns and operates the Lubbock International Airport, located in Lubbock County, Texas (hereinafter referred to as "Airport"); and WHEREAS, LESSOR deems it advantageous to itself and to its operation of the Airport to lease unto LESSEE the premises described herein, together with certain privileges, rights, uses and interests therein, as hereinafter set out; and, WHEREAS, LESSEE is a corporation primarily engaged in commercial aviation, retail sales and the general activities of fixed base operation and aircraft sales; and, WHEREAS, LESSEE proposes to lease on a net basis from LESSOR a certain building and adjacent ground area and to avail itself of certain privileges, rights and uses pertaining thereto; and, WHEREAS, LESSEE has indicated a willingness and ability to properly keep, maintain and improve said premises in accordance with standards established by LESSOR; NOW THEREFORE:' ARTICLE I PREMISES AND PRIVILEGES For and in consideration of the terms, conditions and covenants of this Lease to be performed by LESSEE, all of which LESSEE accepts, LESSOR does hereby lease unto LESSEE certain property together with improvements thereon (hereinafter called "Lease Premises"), and certain attendant privileges, uses and rights, as hereinafter specifically set out. A. DESCRIPTION OF LEASED PREMISES. Building 132: Building Area 6,026 sq. ft. 0 $.6357 per sq. ft.per year. The value of said Building 032 is hereby stipulated to be equal to one hundred times one - twelfth of the annual rental for said building or 100 x $319.23 = $319923.00 Adjacent Land Area 14,076 sq. ft. 0 $.071 per sq. ft. per year. The above described building and land are located at the Lubbock International Airport, Lubbock County, Texas, and are more specifically described on Exhibit A attached hereto and by this reference made a part hereof. B. PURPOSE. The purposes for which LESSEE may use the premises described in paragraph A above are as follows: 1. LESSEE may engage in the business of aeronautics, engine and aircraft repairs, modifications, sales and renting of aircraft, sales of aircraft engine parts and accessories, inspections, licensing, fabrication of aircraft components, flight instruction, storage of aircraft and equipment, airplane charter flights and local short flights and may operate at the Lubbock International Airport as a Fixed Base Operator. 2. LESSEE may give flying instructions, provide pilots for planes for others, and carry passengers and freight for hire, subject to all appropriate laws of the Federal Government, the State of Texas, the County of Lubbock, Texas, and the requirements of all duly authorized govern- mental agencies. 3. LESSEE shall have a nonexclusive right to sell aviation fuel, oil and other propellants or lubricants to the general public at said Airport. ARTICLE II A. The original term of this Agreement shall commence on the 1st day of June, 1983, and end on the 31st day of May, 1984, a term of one (1) year. B. The parties hereto mutually agree that during the original term of this Lease Agreement and any renewal term hereof, the rental rate will be adjusted upward or downward for each ensuing year beginning January 1, 19849 in direct proportion to the fluctuation in the U. S. Department of Labor, Bureau of Labor Statistics Consumer Price Index. For the purpose of computing all adjustments, the Bureau of Labor Statistics Consumer Price Index as of January 1, 1983, shall be construed as the base -period. C. NATIONAL EMERGENCY. In the event the rights and privileges hereunder are suspended by reason of war or other national emergency, the term of this Lease shall be extended by the amount of the period of such suspension. ARTICLE III RENTAL AND FEES In consideration of the rights and privileges herein granted, LESSEE shall pay to the LESSOR the following rentals and fees: A. A fuel flowage fee of four cent (40) per gallon for each gallon of aviation fuel delivered to LESSEE or its agents at. Lubbock International Airport, excluding that sold or delivered by LESSEE to a regularly certified airline under contract with LESSOR as a part of the pecuniary consideration herefor. LESSOR shall be entitled to collect, and LESSEE agrees to pay, a fuel flowage fee, as determined by LESSOR from time to time, for each gallon of aviation fuel delivered.for LESSEE'S consumption 'on said airport excepting that poirtion which is specifically excluded, unless said flowage fees are paid by the supplier on behalf of LESSEE. The aforesaid flowage fees, if not paid by the supplier, shall be due on the first (1st) day of the month succeeding that in which the aircraft fuels and lubricants are received by LESSEE and shall be delinquent if unpaid before the fifteenth (15th) day of each month. It is understood and agreed that the total gallonage delivered to or purchased by LESSEE, other than gasoline delivered to regularly scheduled airlines operating under contract with LESSOR, may be reduced by an amount not to exceed two (2000') per centum in computing charges as a maximum loss allowance from any and all causes. B. Ground rental in the amount of NINE HUNDRED NINETY-NINE AND 40/100 DOLLARS ($999.40) per year for gross land area of 149076 square feet described in Article I, Paragraph A hereof as land adjacent to Building #32, shown on Exhibit A hereto; which rental is computed at`a'rate of..7,1/10„cents ($.071) per square foot per year; such ground rental shall be paid monthly in advance on the first (1st) day of each month in a sum of $83.28 per month, which is a sum equal to one -twelfth (1/12) of the annual ground rental due hereunder. C. Building rental in the amount of THREE THOUSAND EIGHT HUNDRED THIRTY AND 73/100 DOLLARS ($3,830.73) per year for Building #32, which rental is computed at a rate of $.6357 per square foot per year; such building rental shall be payable in advance on the first (1st) day of each month in a sum of $319.23 per month which is a sum equal to one -twelfth (1/12) of said annual building rental due hereunder. D. TWO THOUSAND FIVE HUNDRED AND NO/100 DOLLARS ($2,500.00) is the established annual Fixed Base Operator's fee; however, other applicable ground and building rentals and fuel flowage fees maybe applied to satisfy the requirements of the Fixed Base Operator fee. Amounts payable under this Agreement shall be paid as follows: Monthly payments for ground and building rents effective with the execution of this Agreement are payable in advance on the first (1st) day of each month. Monthly payments for fuel flowage fee effective with the execution of this Agreement are payable on the first (1st) day of the month succeeding that in which the aircraft fuels and lubricants are received by LESSEE. Operators whose payment on rents and fees do not satisfy the minimum operators f6e will pay monthly pro rata amount of $208.34 payable in advance on the first (1st) day of each month. ARTICLE IV OBLIGATIONS AND RIGHTS OF LESSEE A. ASSIGNMENT, TRANSFER, PLEDGE LESSEE shall not at anytime assign, transfer, pledge or otherwise alienate this Agreement or any interest herein, without the prior written consent of LESSOR. B. SUBLEASING LESSEE shall not sublease all or any part of the space leased hereunder without the specific written approval of LESSOR, such approval not to be unreasonably withheld. y • C. TAXES AND ASSES8MtNT55 ' LESSEE agrees to pay promptly when due all taxes and assessments levied on the premises and any other taxes or assessments in connection with its business which may be levied and will promptly pay when due all charges for water, electricity and any other utilities used in connection with the operation of said Fixed Base Operator. D. NONDISCRIMINATION LESSEE, his agents and employees will not discriminate against any person or class of persons by reason of race, color, sex, age, creed or national origin in providing any service 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 LESSOR 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, sex, age ' 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, sex, age 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, including apprentice- ship. LESSEE will conduct its activities and operate its facili- ties 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 hand- icap, and-icap, 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. E. PUBLIC BENEFIT LESSEE agrees to operate the premises leased for the use and benefit of the public. 1. To furnish good, prompt, and efficient services adequate to meet all the demands for its service at the Airport. 2. To furnish said service on a fair, equal and nondis- criminatory basis to all users thereof, and 3. To charge fair, reasonable and nondiscriminatory prices for each unit of sale or service, provided that the -LESSEE may be allowed to make reasonable nondiscriminatory dis- counts, rebates or other similar type of price reductions to volume purchases. F. NONEXCLUSIVE It is understood and agreed that nothing herein contained shall be construed to grant or authorize the granting of an exclusive right within the meaning of Section 308(a) of the Civil Aeronautics Act. G. DEVELOPMENT OF AIRPORT LESSEE agrees that LESSOR has the right to further develop or improve theAirportas it sees fit, regardless of the desires or views of the LESSEE, and without interference or+hindrance. H. RIGHTS OF OTHERS It is clearly understood by the LESSEE that no right or privilege has been granted which would operate to prevent any person, firm or corporation operating aircraft on the airport from performing any services on its own aircraft with its own regular employees (including, but not limited to, maintenance and repair) that it may choose to perform. I. OPERATION OF AIRCRAFT, COMPLIANCE WITH RULES AND REGULATIONS LESSEE agrees that it will operate aircraft at all times in compliance with all applicable federal, state and local rules and regulations and will comply with all applicable statutes, ordi- nances, rules and regulations affecting the use and operation of the hangar and airport. J. PUBLIC LIABILITY INSURANCE LESSEE will carry and maintain Public Liability Insurance in companies licensed to do business in the State of Texas for the protection of LESSOR and naming it as an insured insuring against all claims, losses, costs or expense arising out of injuries to persons whether or not employed by the LESSEE, damage to property whether resulting from acts or omissions, negligence or otherwise of the LESSEE or any of its agents, employees, patrons or other persons, and growing out of the use of the said airport premises by LESSEE, such policies to provide for a liability limit on account of each accident resulting in a bodily injury or death to one person of not less than ONE HUNDRED THOUSAND DOLLARS ($100,000.00), a liability limit on account of each accident resulting ina bodily injury or death to more than one person of not less than THREE HUNDRED THOUSAND DOLLARS ($300,000.00), and a liability limit of not less than ONE HUNDRED THOUSAND DOLLARS ($100,000.00) for each accident for property damage. LESSEE shall furnish evidence to LESSOR of continuance in force of said policies and said policies shall be so worded as to insure ten (10) days notice of cancellation or any modification of such policy to.the LESSOR. Said policies shall be subject to the .approval'of LESSOR. K. HAZARD INSURANCE LESSEE shall procure from a company authorized to do, business in the State of Texas and keep in force hazard and extended coverage insurance upon the buildings located on the leased premises to eighty percent (80%) of the full insurable value thereof as set forth in individual lease agreement, -and shall furnish LESSOR with evidence that such coverage has been procured and is being maintained. L. INSPECTION OF BOOKS AND RECORDS LESSEE shall maintain complete books and records of all transactions, sales and income resulting from its operation at Lubbock International Airport; which books and records may be inspected at anytime by LESSOR or its duly authorized represen- tatives at Lubbock, Texas, upon reasonable notice to LESSEE. In the event LESSEE requests such inspection to be performed outside the Lubbock area, such request may be honored at LESSOR'S discretion; however, any and all expenses incurred by so doing shall be reimbursed by the LESSEE. LESSEE agrees to furnish facts and figures necessary to determine the amount to be paid LESSOR together with a fiscal year end signed statement certified by a Certified Public Accountant that said figures are correct and properly stated.. M. CONDITIONS OF PREMISES: INSPECTION LESSEE agrees that the premises under LESSEE'S control will be kept clean and free of all debris and other waste matter. LESSOR shall have the right at all reasonable times to enter upon the premises for the purposes of inspecting the premises under LESSEE'S control. N. MAINTENANCE LESSEE shall, at its sole cost and expense, maintain the leased premises and the buildings, improvements and appurtenances thereto, in a presentable condition consistent with good business practice. LESSEE shall repair all damages to said premises caused by its employees, patrons or its operation hereon; shall maintain and repair -all equipment thereon, including any drainage installations, paving, curbs, islands,' buildings and improve- ments; and shall repaint. its own buildings as necessary. LESSOR shall be the sole judge of the quality of maintenance and upon written notice by LESSOR to LESSEE, LESSEE shall be required to perform whatever maintenance LESSOR deems necessary. If said maintenance is not undertaken by LESSEE within twenty (20) days after receipt of written notice, LESSOR shall have the right to enter upon the leased premises and perform the necessary maintenance, the cost of which shall be borne by LESSEE. 0. UTILITIES LESSEE shall have the right to connect to any, and all storm and sanitary sewers and water and utility outlets including metering devices at its own cost and expense; and LESSEE shall pay for any and all service charges incurred therefor. P. TRASH, GARBAGE, REFUSE, ETC. 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. Q. LESSEE may not erect or"cause to be erected on leased premises any billboards or advertising signs without the prior written consent of the LESSOR. R. INDEMNITY LESSEE agrees to hold the City free and harmless from loss from each and every claim, and demand of whatsoever nature made on behalf of or by any person or persons resulting from LESSEE'S operation and/or use of the leased premises and common areas owned by LESSOR and used by the LESSEE, its agents, servants and employees, and from all loss and damages by reason of negligence of the LESSEE, its agents, servants and employees. S. USE OF AIRPORT During the term of this Lease, LESSEE and its tenants shall have the free and nonexclusive use, in common with others at the Airport, of all runways, ramps, parking areas and any*and all public facilities available at the Airport and the right of ingress to and egress from the above described premises which right. shall extend to LESSEE'S customers, employees, guests, invitees, tenants and patrons. If during the term of this Agreement, the use of the Airport by LESSEE or its tenants is temporarily suspended, restrict.ed, or interfered with for a period of ten (10) days or more for reasons beyond the practical control of the LESSOR in such manner to substantially affect the use of the hangar or operation of aircraft by LESSEE or its tenants, all fees during such period shall abate and the term of the Agreement shall, at the election of LESSEE, be extended for an equivalent period of time. T. WORKMEN'S COMPENSATION LESSEE shall furnish to LESSOR satisfactory evidence that it carries Workmen's Compensation Insurance in accordance with the laws of the State of Texas. U. IMPROVEMENTS LESSEE shall not make, permit, or suffer any additions, improvements or alterations to the property which constitute any major structural change or changes without first submitting plans and specifications for such additions, improvements or altera- tions to the Director of Aviation of the City of Lubbock and securing prior written consent of the Director of Aviation. Any such additions, improvements or alterations made with the consent of the Director of Aviation shall be solely at the expense of the LESSEE and, unless such consent provides specifically that title to the addition or improvements so made shall vest in the LESSEE, title thereto shall at all times remain in LESSOR and such additions or improvements shall be subject to all terms and conditions of this instrument. The LESSEE agrees to hold LESSOR harmless from Mechanic's and Materialmsn's Liens arising from any construction, additions, improvements, repairs or alterations effected by the LESSEE. V. PARKING LESSEE shall at its sole cost and expense construct adequate and suitable pavement areas for use by its customers for parking of aircraft and automobile parking for its employees, patrons, guests and invitees. W. VEHICULAR MOVEMENT LESSEE will not permit the driving of vehicles by its employees, customers, guests or invitees on the apron, taxiways, or runways except specifically authorized vehicles. ARTICLE V OBLIGATIONS AND RIGHTS OF LESSOR A. SAFETY. LESSOR reserves the right to take any action it considers necessary to protect the aerial approaches of the Airport against obstruction, together with the right to prevent LESSEE from erecting or permitting to be erected any building or other structure on or off the Airport, which, in the opinion of LESSOR, -would limit the usefulness of the Airport or constitute a hazard to aircraft. B. MAINTENANCE OF PUBLIC AREA LESSOR reserves the right, but shall not be obligated to LESSEE, to maintain and keep in repair the landing area of the Airport and all publicly owned facilities of the Airport, together with the right to direct and control all activities of LESSEE in this regard. C. STANDARDS LESSOR reserves the right to establish standards for the construction maintenance, alterations, repairs, additions or improvements of LESSEE'S facilities. This will include struc- tural design, color, materials used, landscaping and maintenance of LESSEE'S facilities and leased premises. ARTICLE VI TERMINATION A. TERMINATION BY LESSEE This Agreement shall be subject to cancellation by LESSEE in the event of the happening of any one or more of the following contingencies without liability to LESSOR: 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 injpnction for at least thirty (30) days. 3. The breach by LESSOR of any of the terms, covenants or conditions of this Agreement to be kept, performed and observed by LESSOR and the failure of LESSOR to remedy such breach for a period of sixty (60) days after 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 said Fixed Base Operator facilities, if such restriction be continued for a period of three (3) months or more. B. TERMINATION BY LESSOR This Agreement shall be subject to cancellation by LESSOR in the event of the happening of any one or more of the following contingencies: 1. If the Lessee makes an assignment for the benefit of creditors -or files a voluntery--petition of bankruptcy; or if 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 provisions of any federal reorganization act; or if a receiver for LESSEE'S assets is appointed; or if LESSEE petitions or applies to any tribunal for the appointment of a trustee or receiver of LESSEE under any bankruptcy, reorganization arrangement, insolvency, readjustment of debt, dissolution or liquidation law of any jurisdiction, whether now or hereafter in effect. 2. If the LESSEE shall abandon and discontinue the conduct and operation of said Fixed Base Operations. 3. If the LESSEE shall default in or fail to make any payments at the 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. 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. LESSOR shall give written notice to LESSEE to correct or cure any such default, failure to perform, or breach and if, within thirty (30) days from the date of such notice, the default, failure to perform, or breach complained of shall not have been corrected in a manner satisfactory to LESSOR, then and in such event, LESSOR shall have the right, at once and without further notice to LESSEE, to declare this Agreement terminated and to enter upon and take full possession of the leased area and, provided further that upon the happening of any one of the contingencies enumerated in Subsection (B-1) hereof, this Agreement shall be deemed to be breached by LESSEE and thereupon "ipso facto" and without entry or any other action by LESSOR the agreement shall terminate, subject to be reinstated only if such involuntary bankruptcy or insolvency proceedings, petition for reorganization trusteeship, receivership or other legal act divesting LESSEE of its rights under this Agreement shall be denied, set aside, vacated or terminated in LESSEE'S favor within thirty (30) days from the happening of the contingency. Upon the happening of said latter events, this Agreement shall be rein- stated as if there had been no breach occasioned by the happening of said contingencies provided that LESSEE shall, within ten (10) days after the final denial, vacating or setting aside of such petition on the vacating, terminating or setting aside of such appointment, pay or discharge any and all sums of money which may have become due under this Agreement in the interim and shall then remain unpaid and Yshall hikewisefi'ftil�ly perform and discharge all other obligations which may have accrued and become payable in the interim. The acceptance of rentals and fees by LESSOR for any period or periods after a default of any of the terms, covenants, and conditions herein contained to be performed, kept and observed by LESSEE shall not be deemed a waiver of any rights on the part of LESSOR to cancel this Agreement for failure by LESSEE to so perform, keep or observe any of the terms, covenants or condi- tions hereof to be performed, kept and observed. No waiver by LESSOR or any of the terms of this Agreement to be kept, per- formed and observed by the LESSEE shall be construed to be or act as a waiver by LESSOR of any subsequent default on the part of the LESSEE. C. OWNERSHIP Within ninety (90) days after expiration of this Agreement as herein provided, the LESSEE shall remove all improvements, constructed or placed thereon such as buildings, equipment, goods,chattels and fixtures belonging to it and to restore the premises then under occupancy to the condition in which they were received, reasonable'weer and tear and damage by fire or the elements excepted. In the event of the failure on the part of LESSEE to immediately remove from the premises all property owned by it under the requirements set forth in this paragraph, LESSOR may effect such removal and store such property et LESSEE'S expense. LESSEE covenants and agrees to pay all reasonable costs, attorney's fees.and expenses that shall be incurred by LESSOR in enforcing the covenants and conditions of this Agree- ment, in event the LESSEE fails to pay expenses within thirty (30) -days, such property will be_de.emed abandoned and title will vest in LESSOR; however, this in no way relieves the LESSEE of the debt incurred. LESSEE shall pay a sum equal to the rentals stipulated herein prorated to the period of time that LESSEE'S property remains on the leased premises after the expiration of the term of this Agreement. In the event LESSOR terminate§.,t,his,Agreement for cause as contained herein or if LESSEE discontinues Fixed Base Operation at anytime prior to expiration, LESSOR retains ownership of LESSEE'S improvements to the extent of the rentals due for the then remaining term. D. This Lease shall be subordinate to the provisions of any existing or future agreement between the LESSOR and the United States, relative to the operation and maintenance of the Airport. ARTICLE VII NOTICE Any required notice to LESSOR provided for herein shall be sufficient if sent by certified mail, postage prepaid, to the Director of Aviation, Route 3, Box 389, Lubbock, Texas, 79401, and any such notice to the LESSEE shall be sufficient if sent in the same manner addressed to Aero Communications, Inc., Route 3, Box 49, Lubbock, Texas 79401. Or such other addresses as may be designated by LESSOR or LESSEE,in writing from time to time. IN WITNESS WHEREOF, the parties have executed this Agreement this 22nd day of September , 1983, by their duly authorized officers. LESSOR: CITY OF L B K, TEX S BY / , "44.- -ALAN-HENRY, MAYOR ATTEST: elyn Ga fga City Secretary -Treasure APPROVED AS TO CONTENT: Ma vin Coffee Director of A ation APPROVED AS TO FORM: loa t -/W. A-flQ'tu e4*0. J an M. Sherwin � sistant City Attorney LESSEE: AERO COMMUNICATIONS, INC. By JR -ON 3 ' ISWELL P ESIDEN ATT ST: n"11 61 avid 0.Wossum Vice Pres. I , F.A.A. REMOTE RADIO r ANTENNA TOWER -- 1 f` 1 RUNWAY I NTERSTATE 27 d F- m X W x I FA.A. I.L.S. LOCALIZER r TO LUBBOCK --�-