HomeMy WebLinkAboutResolution - 1136 - Lease Agreement- Bush Hog- Operations Space Tracts A & B Industrial Section, LIA - 06/24/1982JMS:da
RESOLUTION 1136 - 6/24/82
T)V0nT TTIF'TP1wT
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 Non -Aeronau-
tical Lease Agreement between the City of Lubbock and Bush Hog/Continental Gin
Division, Allied Products Corporation, 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 24th
,ATTEST:
Evelyn Gaff ga, tity Se r y -Treasurer
APPROVED AS TO CONTENT:
�&�/ 6�1
Mar in Coffee,—Dpkctor of Aviation
APPROVED AS TO FORM:
104.4,-
Joa Sherwin, Assistant City Attorney
day of June ,1982.
4L�L cALISTER, MAYOR
,UN 2 19ZVATE OF TEXAS §
COUNTY OF LUBBOCK §
RESOLUTION.1136 — 6/24/82
C IT% SKCRETARY•TREASUAER
KNOW ALL MEN BY THESE PRESENTS:
NON -AERONAUTICAL LEASE AGREEMENT
THIS AGREEMENT, entered into at Lubbock, Texas, by and between the CITY
OF LUBBOCK, hereinafter referred to as "LESSOR", and BUSH HOG/CONTINENTAL GIN
DIVISION, ALLIED PRODUCTS CORPORATION, 10 South Riverside Plaza, Chicago,
Illinois 60606, a Delaware Corporation, hereinafter referred to as "LESSEE",
Witnesseth:
WHEREAS, LESSOR owns and operates a public airport designated as LUBBOCK
INTERNATIONAL AIRPORT herein -called "AIRPORT", and
WHEREAS, the LESSEE desires to use the following described tracts of land
for the purpose of operating a storage and manufacturing enterprise; and
ARTICLE I
NOW THEREFORE, for and in consideration of the covenants and conditions
herein contained and other valuable consideration the LESSOR authorizes the
LESSEE to exercise the rights, powers and privileges hereinafter set forth and
does hereby lease to the LESSEE the premises hereinafter described and being:
Tract A and Tract B located in the Industrial Section, Lubbock
International Airport, Lubbock County, Texas.
Tract A is more specifically described as
A parcel of land out of Section 2, Block D-3, Lubbock County, Texas,
beginning at a point which is the intersection of the North right-of-way
line of 9th Street and the West right-of-way line of Avenue "F", in the
Industrial Section of Lubbock International Airport, which is the south-
east corner of this tract; THENCE generally north along the West right-
of-way line of Avenue "F" for a distance of 575 ft. to its intersection
of the South right-of-way line of°'8th Street for the northeast corner of
this tract; THENCE generally West 390' along the South right-of-way line
of 8th Street to its intersection of the East right-of-way line of Avenue
"G" for the northwest corner of this tract; THENCE generally South 575
ft. along the East right-of-way line of Avenue "G" to its intersection
with the North right-of-way line of 9th Street for the southwest corner
of this tract; THENCE generally East along the North right-of-way line of
9th Street f6 a distance of 390' to the intersection of the North right-
of-way line bf 9th Street and the West right-of-way line of Avenue "F",
the place of beginning, containing 224,250 sq. ft. more or less.
Tract B is more specifically described as
A parcel of land out of Section 2, Block D-3, Lubbock County, Texas,
beginning at a point which is the intersection of the South right-of-way
line of Ninth Street and the West right-of-way line of Avenue "F" in the
Industrial Section of Lubbock International Airport, which is the north-
east corner of this tract; THENCE South along the West right-of-way line
of Avenue 'T' for a distance of 100 ft. to a point which is the southeast
corner of this tract; THENCE generally West on a line parallel to the
South right-of-way line of Ninth Street for a distance of 390 ft. to a
point which is the southwest corner of this tract; THENCE generally North
for a distance of 100 ft. to the South right-of-way line of Ninth Street
at a point at which the South right-of-way line of Ninth Street would
intersect an extension of the East right-of-way line of Avenue "G" for
the northwest corner of this tract; THENCE generally East for a distance
of 390' along the South right-of-way line of Ninth Street to its inter-
section with the West right-of-way line of Avenue "F", the place of
beginning, containing 39,000 sq. ft. more or less.
The original term of this agreement shall be for a period of 5 years,
commencing upon March 1, 1982 and ending February 28, 1987. LESSEE shall have
the option to extend this agreement for one five (5) year period. Such option
must be exercised in writing at least ninety (90) days prior to expiration
date of the original term. If the LESSEE desires to exercise said option, the
rental rate shall be in accordance with the calculations as set forth herein
plus CPT index Increases.
As consideration for the option rights granted under this lease, LESSEE
agrees that upon exercising its option to extend this lease agreement for one
five (5) year period after the expiration of the original term of this lease,
LESSEE shall construct a screening fence which complies with the requirements
set forth hereafter in Article III, Paragraph six.
ARTICLE II
In consideration of the rights and privileges herein granted, LESSEE
shall pay to the LESSOR a ground rental for 224,250 square feet in Tract A at
the rate of $.068 per square foot per year or FIFTEEN THOUSAND TWO HUNDRED
FORTY NINE DOLLARS ($15,249.00) per year and a ground rental for 39,000 square
feet in Tract B at the rate of $.068 per square foot per year or TWO THOUSAND
SIX HUNDRED FIFTY TWO DOLLARS ($2,652.00) per year, commencing on March 1,
1982; LESSEE shall pay to LESSOR the rents set forth herein in monthly payments
in advance by the tenth day of each month, such monthly payments being ONE
THOUSAND TWO HUNDRED SEVENTY DOLLARS and SEVENTY FIVE CENTS ($1,270.75) for
Tract A and TWO HUNDRED TWENTY ONE DOLLARS ($221.00) for Tract B.
The parties hereto mutually agree that the rental rates set forth above
shall be adjusted upward or downward for each ensuing year beginning January
1, 1983 in direct proportion to the fluctuation of the U.S. Department of
Labor, Bureau of Labor Statistics Cost of Living Index. For the purpose of
computing all adjustments, the Bureau of Labor Cost of Living Index as of
January 1, 1982 shall be construed as the base period.
ARTICLE III
This lease is granted subject to the following provisions and conditions:
1. The lease herein granted is subject to any and all applicable laws,
ordinances, rules and regulations pertaining to the Lubbock Airport.
2. 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 the Airport which in the opinion of LESSOR
would limit the usefulness of the Airport or constitute a hazard to aircraft.
3. During the time of war or national emergency the LESSOR shall have
the right to enter into an agreement with the United States Government for
military or naval use of part or all of the landing area, the publicly owned
air navigation facilities, and other area or facilities of the Airport. And
if any such agreement is executed, the provisions of this instrument, insofar
as they are inconsistent with the provisions of the agreement with the Govern-
ment, shall be suspended.
4. This agreement 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, the execution of which has been or
may required as a condition precedent to the expenditure of federal funds
for the development of the Airport.
5. All rights, privileges and interests acquired herein by LESSEE at
the option of the LESSOR, following written notice of thirty (30) days, may be
suspended if such suspension is found by the LESSOR, acting in good faith, to
be necessary to secure federal financial aid for the development of the Airport,
or further development and provisions of aeronautical operations thereon.
6. LESSEE agrees that upon exercising its option to renew this lease
for an additional five year term, LESSEE shall construct and thereafter maintain
during the remaining term of this lease, in good repair, -a permanent six-foot
high fencing to be constructed out of such materials as are suitable astheti-
cally, economically and structurally, as Lessor and Lessee shall agree, between
any area used as outside storage and the streets adjacent to the leased premises.
Prior to commencing construction of said screening fence, LESSEE shall secure
the written approval of LESSOR as to the design and exact location of said
fence.
7. The LESSEE shall not make, permit, or suffer any subsequent additions,
improvements or alterations to the property without prior written consent of
the LESSOR. Any such additions, improvements or alterations made with the
consent of the LESSOR 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 the
6 ' t
LESSOR and such additions or improvements shall be subject to all terms and
conditions of this instrument. The LESSEE agrees to hold the LESSOR harmless
from mechanic's and materialman's liens arising from any additions, improvements,
repairs or alterations effected by the LESSEE. It is hereby acknowledged that
title to the buildings and structures currently located on the property as of
this date is vested in, and shall remain vested in, Lessee, and said buildings may
be removed by the Lessee at the expiration or termination of this lease agreement;
provided, however, that Lessee is not in arrears in any rental or utility payments,
to the Lessor, and provided further, that the Lessee shall restore the premises
to the same condition existing at the commencement of this lease, normal wear and
tear and damage by the elements excepted.
8. The LESSOR, acting by and through the Director of Aviation, or other
designated representative shall have the right to inspect the property at all
reasonable times during the term of this lease.
9. The LESSEE agrees that it will at all times during the term of this
lease maintain in good and serviceable condition all land, improvements,
facilities and equipment included herein, ordinary wear and tear excepted,
such maintenance to be the sole responsibility and obligation of the LESSEE.
10. Except as provided herein, any property of the LESSOR, or for which
the CITY OF LUBBOCK may be responsible, which is damaged or destroyed incident
to the exercise of the privileges herein granted shall be properly repaired or
replaced by the LESSEE to the satisfaction of the LESSOR and its authorized
representatives, or in lieu of such repair or replacement, the LESSEE shall,
if so required by the LESSOR, pay to the LESSOR money in any amount deemed
sufficient by the LESSOR to compensate for the loss sustained by the LESSOR by
reason of the loss of, damage to, or destruction of such property.
11. The LESSEE agrees to indemnify, defend and forever save the LESSOR,
its authorized agents, representatives and employees, harmless from and
against any and all penalties, liability, annoyances, or loss resulting from
claims or court action of any nature arising directly or indirectly out of any
acts or omissions of the LESSEE, its agents, servants, guests, employees or
business visitors under this agreement.
12. The LESSEE shall maintain at all times, at its sole expense, in-
surance with an insurance underwriter acceptable to the LESSOR and from one
authorized to do business in the State of Texas, against claims of public
liability and property damage resulting from LESSEE'S business activities at
the Airport. The amount of insurance coverage shall be not less than FIFTY
THOUSAND DOLLARS ($50,000) for property damage as a result of any one event,
or less than ONE HUNDRED THOUSAND DOLLARS ($100,000) for personal injury or
death of any one person in any one event; or less than THREE HUNDRED THOUSAND
DOLLARS ($300,000) for personal injury or death of two or more persons in any
one event. Certificates of insurance or other satisfactory evidence shall be
filed with the City Secretary prior to entry upon the premises by the LESSEE.
Each policy shall name the LESSOR, CITY OF LUBBOCK, as an additional insured
as its interest may appear. Each policy shall provide "It is agreed that
insurer shall notify the CITY OF LUBBOCK, TEXAS, of any alteration, renewal or
cancellation of this policy and that this policy shall remain in full force
and effect until ten (10) days after such notice is received by the Director
of Aviation.
13. LESSEE shall furnish to the LESSOR satisfactory evidence that it
carries Workmen's Compensation Insurance in accordance with the laws of the
State of Texas.
14. The LESSEE shall assume responsibility for the payment of all taxes
and assessments and public utility charges becoming due on the property from
the date of execution of this agreement. The LESSEE agrees to pay all claims
or damages for or on account of water, lights, heat, power, sewage disposal,
and any other services or utilities furnished to or with respect to the property
or any part thereof. The LESSOR does not guarantee to furnish utilities or
utility services in the future. In the event utility service is not furnished
for reasons other than repair or installation of lines or non-payment of
charges, LESSEE shall have the option to cancel this lease upon thirty days
notice to the LESSOR.
15. Within 30 days following the date of expiration or termination of
this agreement, the LESSEE shall as required by the LESSOR, vacate said premises,
remove all property of the LESSEE and restore the land, improvements, facilities
and equipment included herein to as good condition on such date of expiration
or termination as when received, ordinary wear and tear excepted. If the
LESSEE shall fail. or neglect to -remove said property and so restore the land,
improvements, facilities and equipment included herein, within 30 days of said
expiration or termination, then at the option of the LESSOR said property
shall either become the property of the LESSOR without compensation therefor
or the LESSOR may cause the property to be removed, the land, improvements,
facilities and equipment included herein to be restored at the expense of the
LESSEE and no claim for damages against the LESSOR or its officers, agents, or
employees shall be created or made on account of such removal and restoration.
16. The LESSEE, its agents and employees will not discriminate against
any person or class of persons by reason of sex, race, color, creed or national
origin in providing any services or in the use of any of its facilities pro-
vided for the public, in any manner prohibited by the Federal Aviation Regu-
lations. 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 given by the CITY OF LUBBOCK.
LESSEE agrees to not discriminate against any employee or applicant for
employment because of race, creed, color, 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, sex or national origin. Such action shall include, but not be
limited to employment, upgrading, demotion, or transferl, recruitment, layoff,
rates of pay or other forms of compensation, and selection for training, in-
cluding apprenticeship.
The LESSEE will conduct its activities and operat its facilities in
accordance with the requirements of Section 504 of the ehabilitation Act of
1973 and will assure that no qualified handicapped person shall, solely by
reason of his or her handicap be excluded from participation in, be denied the
benefits of, or otherwise be subjected to discriminatio , including discrimination
in employment, under any program or activity of the LESSEE.
17. The LESSEE warrants that it has not employed any person employed by
the LESSOR to solicit or secure this Lease Agreement up n any agreement for a
commission, percentage, brokerage, or contingent fee.
18. Except with prior written consent of the LESSR the LESSEE shall not
sublet any part of the premises or assign the license o any of its rights
i
hereunder.
19. The failure of the LESSOR to insist in any one or more instance upon
performance of any of the terms or conditions of this lease shall not be
construed as a waiver or relinquishment of the future,,performance of any such
term or conditions but the LESSEE'S obligation with respect to such future
performance shall continue in full force and effect.
20. The obligation of the LESSEE to maintain the property to the satis-
faction of the LESSOR or its representative and to restore the same to its
present condition shall extend not only to the property hereinabove described
but to the adjacent streets and roadways used for ingress and egress to said
property, except for ordinary wear and tear occasioned by normal and customary
uses.
21. LESSEE shall provide a complete and proper arrangement for the
adequate sanitary handling and disposal away from the Airport, of all trash,
garbage and other refuse caused as a result of the operation of its business
at its sole expense.
22. LESSEE agrees that the LESSOR shall have, and it hereby grants the
LESSOR a lien on all LESSEE'S property of whatsoever nature placed in or upon
the premises, to guarantee the payment of any and all arrearages.
23. In the event LESSEE remains in possession of the Leased Premises
after the expiration of this Lease Agreement without any written renewal or
extension of this Lease, such holding over shall not be deemed as a renewal or
extension of this Lease, but shall create only a tenancy from day to day which
may be terminated at any by LESSOR.
ARTICLE IV
This agreement is subject to termination for the reasons set forth below,
provided that 30 days written notice is given to the non -terminating party.
The LESSEE may terminate upon the happening of any of the following:
1. The permanent abandonment of the Airport as an air terminal.
2. The issuance by any court of competent jurisdiction of an injunction
in any way preventing or restraining the use of the Airport and the remaining
in force of such injunction for at least thirty (30) days.
3. The breach.by the LESSOR of any of the terms, covenants or conditions
of this agreement to be kept, performed and observed by the LESSOR, and the
failure of the LESSOR to remedy such breach for a period of sixty (60) days
after written notice from the LESSEE of the existence of such breach.
4. The assumption by the United States Government, or any authorized
agency of same, of the operation, control or use of the Airport and its fa-
cilities in such a manner as to substantially restrict the LESSEE from operat
Ing under the...,terms of this agreement, if such -restriction is to continue or
has continued for a period of three (3) months or more.
The LESSOR may terminate upon the happening of any of the following:
1. If the LESSEE shall file a voluntary petition of bankruptcy; or, if
the proceedings in bankruptcy shall be instituted against it and it is thereafter
adjudicated a bankrupt pursuant to such proceedings; or if a court shall take
jurisdiction of LESSEE and its assets pursuant to proceedings brought under
the provisions of any federal reorganization act; or if a receiver for LESSEE'S
assets is appointed; or if LESSEE shall be divested of its rights, powers and
privileges under this agreement by other operation of law.
2. If the LESSEE shall abandon and discontinue operations under this
agreement.
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.
6. If LESSOR, acting in good faith, finds termination of the rights,
privileges and interests of LESSEE acquired under this Lease to be necessary
to secure Federal Financial aid for the development of the Airport, or further
development and provisions of aeronautical operations thereon.
ARTICLE V
1. Notices to the LESSOR required or appropriate under this lease shall
be deemed sufficient if in writing and mailed by registered mail with postage
prepaid to the Director of Aviation, Lubbock International Airport, Route 3,
Box 201, Lubbock, Texas 79401.
Notices to the LESSEE required or appropriate under this lease shall be
deemed sufficient if in writing and mailed by registered mail with postage
prepaid to BUSH HOG/CONTINENTAL GIN DIVISION, Allied Products Corporation,
2. LESSEE'S registered agent for service of legal process in the State
of Texas is l"2�iv7`7r�-1i4G� Gd�D/ �rylYj/Sl7z--,,P-x
Such registered agent may be served at LESSEE'S registered office at
3. Should LESSOR institute legal action to collect rentals due under
this lease agreement or damages for breach of any covenant made herein, a
reasonable sum shall be added to the amount of recovery for attorney's fees
together with all costs of court.
4. Both parties hereby agree that this instrument constitutes the final
agreement of the parties and that all other previous agreements, leases, and
contracts between the parties which pertain to the property described herein
are hereby declared null and void.
CITYOF LUB TEXAS
BY:
Mij d
cALISTER, MAYOR
AT EST:- - - - - -
Evelyn Ga ga, City ScrA Treasurer
APPROVED AS TO CONTENT:
M24411� pwzxx-
Marvin Coffee, D Wctor of Aviation
APPROVED AS TO FORM:
QOIA44 JLU�
J Sherwin, Assistant City Attorney
LESSEE:
BY:
TITLE:1,oll
ATTEST•
;��,Sec`retaAr