Loading...
HomeMy WebLinkAboutResolution - 761 - Addendum #1 To Agreement - Ridpath Aviation - Leased Area Reduction - 03/26/1981AA:dh RESOLUTION #761 - 3/26/81 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 an Addendum No. 1 "Modified Fixed Base Operator Agreement and Office Space Lease - Old Ter- minal Building" 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 26th day of March ,1981. Jai ILL McALIS ER, MAYOR ATTEST: L'velyh C fga, City e r ry-Treasurer APPROVED AS TO CONTENT: 666 Marvin Coffee, D for of Aviation APPROVED AS TO FORM: Angela Adfims, Assistant City Attorney RESOLUTION X6761 - 3/26/81, r � ADDENDUM NO. 1 TO MODIFIED FIXED BASE OPERATOR AGREEMENT AND OFFICE SPACE LEASE - OLD TERMINAL BUILDING WHEREAS, the City of Lubbock, herein referred to as "LESSOR" and Jack Ridpath dba Ridpath Aviation, sole proprietorship, under the laws of the State of Texas, hereinafter referred to as "LESSEE" entered into an agreement entitled "Modified Fixed Base Operator Agreement and Office Space Lease - Old Terminal Building" on March 2, 1978; and WHEREAS, Jim Ridpath is the current owner of Ridpath Aviation, after the death of Jack Ridpath; and WHEREAS, LESSEE is desirous to reduce the exclusive leased area; Both parties hereby agree that the total area of the leased premises, i.e. 2,679 square feet, is hereby reduced by 865 square feet, as is shown by the shaded area on Exhibit "A" which is attached hereto and made a part hereof for all purposes. The remaining area of 1,814 square feet shall constitute the leased premises under the aforementioned original agreement of March 2, 1978, and the rental payments due thereunder shall be adjusted accordingly by applying the same rental rate of $4.13 per square foot to the reduced area. Executed this 26th day of March 1981. r /57 BILL McALISTER_ MAYOR „ATTt. T.- - - L-4� ,.<=Evelyn Ga fga,, City ecr iry-T�reasu�rer APPROVED AS TO CONTENT: 01 Ma in Coffee, D 111filtor of Aviation APPROVED AS TO FORM: Ridpath Aviation BY: _ 4 4z, 1 t4� udty7�� Angela ams, Assistant City Attorney Title No Text MODIFIED FIXED BASE OPERATOR AGREEMENT AND OFFICE SPACE LEASE - OLD TERMINAL BUILDING THIS LEASE AGREEMENT, made this day of ::?yY0_,t 19 79 , between the City of Lubbock, acting by and through its duly authorized City representative (hereinafter referred to as "Lessor") and Jack Ridpath dba Ridpath Aviation (a sole proprietorship) under the laws of the State of Texas (hereinafter referred to as the "Lessee"). WHEREAS, City owns and operates Lubbock International Airport, located in Lubbock County, State of Texas, (hereinafter referred to as "Airport"), and WHEREAS, Lessee desires to lease. approximately 2, 679 square feet of space in the old terminal building and, WHEREAS, Lessee is 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 certain office space 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 space in accordance with standards established by Lessor, WHEREAS, City is currently operating the old terminal building at said airport and said building includes adequate space to accommodate Lessee, and 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-exclusive use facilities, rights and privileges in connection with and on the airport, as here- inafter described, upon the terms and conditions as follows: ARTICLE I Section 1.01 - Description of Exclusive Leased Premises The exclusive Leased Premises shall be comprised of 2, 679 square feet, more or less, in the old terminal building. The location of the Leased Premises is designated in red on Exhibit "A" attached hereto and by this reference made a part hereof. -1- 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 generality hereof, shall consist of: A. Access to Lessee's leased space B. Adequate and reasonably convenient vehicular parking space for the use of Lessee and its customers and its employees. Such space shall be at locations designated by City in common with other airport customers and employees at the old terminal building, and the use thereof shall be provided on the same basis as estab- lished for other airport customers and employees. C. Public aircraft parking ramp Lessee may park its aircraft on the ramp as privileged to any other aircraft using the airport facility. Lessee may not reserve or restrict any ramp space for its exclusive use nor engage in any aircraft maintenance or repair on the public ramp. 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 now are or may hereafter be connected with or appurtenant to the airport. For the purpose of this lease, "public airport facilities" shall include, but not be limited to, roadways, sidewalks, parking facilities, or other public facilities, appurtenant to the airport. Lessee's use of said leased facilities shall be for the sole purpose of providing aviation services and office space for its business firm. Lessee shall have the right to place or replace existing signs identifying Lessee's business on and in the old terminal building. Said signs shall be of a type, size and design that will be subject to the written approval of City prior to installation. Such installation will comply with all applicable City Codes and shall be without cost to the City. The purposes for which Lessee may use the premises described in Section 1.01 above are set forth as follows: -2- Lessee may engage in the business of aviation services limited to the sale and 'renting of aircraft, flight training, classroom instruction, charter flights, local short flights, provide pilots for planes of others, and carry passengers and freight for hire subject to all appropriate laws of the Federal, State, County and City and the requirements of all duly authorized governmental agencies. ARTICLE II Section 2.01 - Installed Improvements and Property All improvements, equipment, and other property bought, installed, erected and placed by Lessee in, on or about the Leased Premises shall be deemed to be personalty and remain the property of Lessee, except as may constitute 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 pro- perty referred to herein, together with all the premises, facilities, rights and privi- leges herein granted, and has full power and authority to enter into this lease in respect thereof. Section 3.02 - Maintenance and Services in Lessee's Exclusive Space City shall be responsible for and shall perform exterior building maintenance, structural maintenance, and installed equipment such as heating and air conditioning units and pay for all inspections as may be required by other agencies for City owned buildings throughout the Leased Premises. Section 3.03 - Improvements to Leased Premises to be Made by City The City will provide remodeling construction to the Leased Premises at a cost up to, but not to exceed, $2,787.00 for inside perimeter walls as per approved plans and specifications prior to construction and installation. It is further agreed and understood by the parties hereto that in no event shall the City be otxligated to pay a sum in excess of the amount first stated herein. All construction and installation made here- under shall be considered as a fixture attached to the premises and will be and remain the property of the City. -3- ARTICLE IV Obligations of Lessee Section 4.01 - Maintenance of Leased Premises Except for exterior building, structural maintenance, and installed equipment by City, as provided in Section 3. 02, Lessee shall be obligated, without cost to City, to maintain its exclusive Leased Premises and every part thereof including, but not limited to, installed equipment owned by Lessee. -�nrl ,jw m;-iintcna.nce i -nd safe -o �aition. Lessee shall, at its own expense, provide janitorial services in the Leased Premises. Said services may be provided by Lessee alone, or by Lessee in conjunction with other tenants who may hereafter be Lessee's at the airport. Lessee shall relamp light fixtures as necessary and shall repaint the interior of the Leased Premises as necessary, but not less than once every three (3) years. All such maintenance, repairs, and replacements shall be of quality equal to the original condition in materials and workmanship. All paint colors or shhemes shall harmonize with the revised decor of the old terminal area subject to the prior approval of the Director of Aviation. Section 4.02 - Building Improvements Lessee agrees to make improvements to the building in accordance with the general plans and directions given by the Lubbock Airport Board and specifically set forth within the provisions of this lease agreement. Section 4.03 - Energy and Utilities Lessee agrees to pay for all heating, lighting, and air conditioning energy con- sumption in Leased Premises and all utility charges associated with the occupancy of the Leased Premises which shall be separately metered. Section 4.04 - 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 the City. Lessee shall likewise obtain prior approval from City before installing, at its own expense, any additional equipment which require sinew clectrichLor°-plumbing con- nections or changes in those already installed on the Leased Premises. >>t -4- Section 4. 05 - 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 descretion, condition such consent upon the obligation of Lessee to replace the same improvements specified in such consent upon termination of this lease. City shall not withhold consent unreasonably and shall not impose unreasonable condition on its consent. Section 4..t0£ - Trash and Garbage Lessee shall provide at its own 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 occupancy of Lease Premises. Section 4.07 - Taxes and Licenses Lessee shall pay all taxes of whatever character that may be lawfully levied or. charged upon Lessee's Leasehold improvements 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 business. City shall assist Lessee where necessary in obtaining said permits. Section 4,00 - Rules and Regulations In conducting its business, hereunder, Lessee shall comply with all applicable laws of the United States of America and the State of Texas; the rules and regulations promulgated by their authority with reference to aviation and air navigation, 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 City shall not be inconsistent with the terms of this agreement. Section 4. 09 P 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 Avitition 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. -5- Lessee agrees to not discriminate against any employees or applicant for employment because of age, sex, race, color, creed or national origin. The Lessee agrees to take affirmative action to insure that applicants are employed and that employees are tested during employment without regard to their age, sex, race, color, creed 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 apprenticeship. Section 4.10 - Improvements to Leased Premises Lessee agrees to pay all costs of construction for improvements to leased space over and above the amount specified in Section 3.03. This will include but not be limited to construction costs, architectural fees, inspection and permits. All construction must be in accordance with plans that shall be presented to and approved by Bill Cantrell Planners and the Director of Aviation. All improvements must be made and completed before Lessee may occupy said premises. Such improvements shall be considered fixtures attached to premises and will remain the property of the City. All construction shall be in accordance with the City of Lubbock's Building Code. ARTICLE V Term Section 5, 01 - Term The term of this Lease shall be for a period of Five (5) years commencing on / day of19 7_ or date of beneficial occupancy subject; however, to earlier termination as hereinafter provided. ARTICLE VI Rentals and Fees Section 6.01 - Rental for Exclusive Leased Premises in (old Terminal Rental for the Leased Premises in the old terminal building as described in Section 1. 01, shall be as follows: 2, 679 square feet of Exclusive Leased Space at the rate of $3.00 per square foot per year or $8, 037.00 per year or $669.75 per month. Rent is payable in advance. by the tenth of each month. -6- Rental rate will be adjusted upward or downward for each ensuing year beginning January 1, 1979 in direct proportion to the fluctuation in 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, 1978, shall be construed as the base period. ARTICLE VII General Conditions Section 7.01 - Default for Failure to Pay Rentals, Fees and Charges If Lessee fails to pay rentals, charges and fees due hereunder within thirty (30) days after City transmits a statement therefore 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 other part thereof in the name of the whole, and repossess said premises. Section 7.02 - 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 of negligence of the other. Lessee agrees that the leased premises and adjoining premises which are partially or completely destroyed or damaged as a result of an act or omission by Lessee, City may, in its discretion, 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 7.03 - 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 the City. Section 7.04 - Hold Harmless Lessee agrees to indemnify, defend and forever save the Airport Board and City, their 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 ommissions of Lessee, his agents, representatives, servants, guests, employees, or business -7- visitors under this agreement. Section 7.05 - 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 7.05 all policies and certifi- cates shall contain a provision that written notice of cancellation or of any material change in said policy by the Insurer shall be delivered to the City thirty (30) 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 subrogation. 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 the 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 the entire term of this Lease or shall deposit with City certified copies of said policies. (A). Workman's Compensation Lessee shall provide workmen's compensation insurance to meet statutory requirements, if qualified. The workmen's compensation policy shall provide employee's liability insurance in the amount of One Hundred Thousand (100, 000. ) Dollars. (B). Public Liability and Property Damage Lessee shall, at its sole expense, maintain insurance against claim 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 (50, 000.) Dollars for property damage as a result of any one event; or less than One Hundred Thousand (100, 000.) Dollars for personal injury or death of any one person in any one event; or less than Three Hundred Thousand (300, 000.) Dollars for personal injury or death of two or more persons in any one event. (C). Fire Insurance Lessee shall insure for fire and extended coverage risks all Lessees' improvements on Leased Premises. Such insurance shall be in an amount equal to the full insurable replacement 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 -8- such policy or policies shall be applied toward repair or reconstruction of said Leasehold improvements. Section 7.06 - Rules and Regulations City shall have the right to and shall adopt from time to time and enforce reasonable rules and regulations, which Lessee agrees to observe and obey, with respect to the use of the Airport, public terminal buildings and oppurtenances; pro- vided that such rules and regulations shall not be inconsistent with safety and with rules, regulations, and orders of the Federal Aviation Administration. Section 7.07 - 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 non-compliance with the terms hereof. City and Lessee shall each select an arbitrator and the two so chosen shall then select a competent and disinterested third arbitrator; and the arbitrators together shall then consider the question(s) or the dispute(s) sub- mitted 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 7.08 - Termination This lease shall terminate at the end of a full term hereof, and Lessee shall have no further right or interest in the Leased Premises. That on or before the date of expiration of this Lease or its relinquishment of this Lease, the Lessee shall as required by City, vacate said premises, remove all property of the Lessee and restore the Leased Premises facilities and equipment included herein to as good condition on such date or expiration or relinquishment as when received, ordinary wear and tear excepted. If, however, this Lease is revoked the Lessee shall vacate the Premises, remove said property and restore the Leased Premises, improvements, facilities and equipment included herein as aforsaid within such times as City may reasonably designate. In either event, if the Lessee shall fail or neglect to remove said property and so restore Leased Premises, improvements, facilities and equipment included herein, then at the option of City said property shall either become the property of City without compensation therefore or City may cause the property to be removed and the Leased Premises, improvements, facilities and equipment included herein to -9- be stored at the expense of Lessee and no claim for damages against City or its officers, agents, or employees shall be created or made on account of such removal and restoration. Section 7.09 - Notices Notices to City provided for herein shall be sufficient if sent by registered mail, postage prepaid, addressed to: Director of Aviation, Rt. 3, Box 389, Lubbock, Texas 79401 prepaid, addressed to: and notices to Lessee, if sent by registered mail, postage 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 day of JA , 197 . ATTES City of Lubbock By By Approved a to Form: By kc- STC' Attorney By ?PC LDA. Ayl,-� Lessee -10- FIXED BASE OPERATOR AGREEMENT THIS LEASE AGREEMENT, made this 21 st day of January 19 76 , between the City of Lubbock, acting by and through it duly author- ized city representative (hereinafter referred to as "Lessor") and Jack Ridpath dba Ridpath Aviation (a sole proprietorship) under the laws of the State of Texas , with its principal office at Lubbock, Texas (hereinafter referred to as the "Lessee"). WITNESSETH WHEREAS, Lessor owns and operated the Lubbock Regional Airport, located in Lubbock County, Texas (hereinafter called the "Airport"), and WHEREAS, Lessor deems it advantageous to itself and to its operation of the Airport to lease unto Lessee the parcel of land described herein, together with certain privileges, rights, uses and interests therein, as hereinafter set out, and, WHEREAS, Lessee is a corporation primarily engaged in com- mercial aviation retail sales and the general activities of fixed base opera- tion and aircraft sales, and, WHEREAS, Lessee proposes to lease on a net basis from Lessor certain 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 ground in accordance with standards estab- lished 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 demise and lease unto Lessee certain property together with improvements thereon (hereinafter called "demised premises"), and certain attendant privileges, uses and rights, as hereinafter specifically set out. A. Description of Premises Demised - Building #201 located on the East ramp of Lubbock Regional Airoort and the land under and extending out 20 feet on all sides of building #201 1 . Land Area - 12,360 square feet 2. Building Area - 5,040 square feet The location of the leased premises is set forth 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 1 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 acessories, inspections, licensing, fabrication aircraft components, flight instruction, storage of aircraft and equipment, airplane charter flights and local short flights and may operate at the Lubbock Regional 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 governmental agencies. 3. Lessee, in common with others, may sell aviation fuel, oil and other propellants or lubricants to the general public at said airport. A. The original term of this agreement shall commence on the 1 st day of January , 19 76 , and end on the 31st day of December , 19 80 , a term of five years. B. The parties hereto mutually agree that the rental rate will be adjusted upward or downward for each ensuing year beginning January 1 , 19 77 , in direct proportion to the fluctuation in 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 Statistics Cost of Living Index as of January 1, 1973, shall be construed as the base period. -2- 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. RENTAL AND FEES In consideration of the rights and privileges herein granted, Lessee shall pay to the City the following: A. Four cents (4(f) per gallon for each gallon of aviation fuel delivered to Lessee or its agents at Lubbock Regional Airport, excluding that sold or delivered by Lessee to a regularly certified airline under contract with the City of Lubbock as a part o the pecuniary consideration herefpr, 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 delivere for Lessee's consumption on said airport excepting that portion 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 day of the month succeeding that in which the aircraft fuels and lubricants are received by Lessee and shall be de- linquent if unpaid before the fifteenth day of each month. It is under- stood and agreed that the total gallonage delivered to or purchased by Lessee, other than gasbline delivered to regularly scheduled airlines operating under contract with Lessor,, may be reduced by an amount not to exceed two (2/) per centum in computing charges as a maximum Loss allowance from any and all causes. B. Ground rental for the gross land area, leased hereunder, shown on Exhibit A containing 12,360 square feet as defined in Article I, Paragraph A at the rate of $0.0372 per square foot per year shall be paid to Lessor by Lessee. Ground rentals shall be paid monthly in advance on the first day of each month in a sum equal to one -twelfth of the annual ground rental due hereunder. -3- C. Building rental and ground rental of city owned ,facilities is computed on a monthly basis as follows: 1. Ground Rental $38.31 , 2. Building Rental $433.00 Total Monthly Rental Due as of January 1 , 19 76 $471.31 Credit for improvements and repairs made by Lessee to leased facilities as agreed to by Lessee in Article IVA. will be given to Lessee by Lessor by way of fifty (50%) per centum reduction in monthly rentals. This reduction of fifty (50%) per centum of rentals will continue on a month to month basis until Lessee has received full credit for his investment in improvements and repairs herein agreed. In no event will this credit extend beyond the expiration date of this contract (December 31, 1980). D. Two thousand five hundred ($2,500.00) is the established annual Fixed Base Operator's fee, however, other applicable ground rent, building rent and fuel flowage fees may be applied as satisfying the re- quirements of the Fixed Base Operator fee. Amounts payable under this agreement shall be paid as follows: Monthly payments for ground and hangar rents and fuel flowage fee effective with the execution of this agreement are payable no later than the 15th day of the month follow- ing. Operators whose payment on rates and fees do not satisfy the minimum operators fee will pay monthly pro rata amount of $208.34 payable no later than the 15th day of each month. ARTICLE IV OBLIGATIONS AND RIGHTS OF LESSEE A. BUILDING IMPROVEMENTS Lessee agrees to make improvements to the building in accordance with the directions given by the Lubbock Airport Board at the Board's regular meeting December 17 , 19 75 1. Improvements will be completed by , July 1, 1976 a 2. All improvements are subject to the approval of the Director of Aviation or his designated representative. 3. Lessee will keep complete and accurate records of expenditures for building improvements and make such records available to -4- Director of Aviation at the Airport Administration Office. B. ASSIGNMENT, TRANSFER, PLEDGE Lessee shall not at anytime assign, transfer, pledge, or otherwise alientate this agreement or any interest herein, without the prior written consent of the City. C. . SUBLEASING Lessee shall not sublease all or any part of the space de- mised hereunder without the specific written approval of Lessor, such approval not to be unreasonably withheld. D. TAXES AND ASSESSMENTS Lessee agrees to pay all taxes and assessments levied on the premises ans any other taxes or assessments in connection with its business which may be levied, promptly when due, 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. E. NON-DISCRIMINATION 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 Sponsors' 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 em- ployement without regard to their race, creed, color, sex, age or national origin. Such action shall include, but not be limited to employment, up- grading, demotion, or transfer, recruitment, layoff, rates of pay or other forms of compensation, and selection for training, including apprenticeship. -5- F. 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 non- discriminatory basis to all users thereof, and 3. To charge fair, reasonable and non-discriminatory prices for each unit of sale or service, provided that the Lessee may be allowed to make reasonable and non-discriminatory discounts, rebates, or other similar type of price reductions to volume purchases. G. NON-EXCLUSIVE 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 Aernautics Act. H. DEVELOPMENT OF AIRPORT' Lessee agrees that Lessor has the right to further develop or improve the airport as it sees fit, regardless of the desires or views of Lessee, and without interference or hindrance. I. 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. J. 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 complying with all applicable statutes, ordinances, rules and regulations affecting the use and operation of the airport and airport facilities. -6- - K. PUBLIC LIABILITY INSURANCE Lessee will carry and maintain Public Liability Insurance . in companies licensed to do business in the state of Texas for the pro- tection of the City of Lubbock 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 re- sulting 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 liabiltty limit on account of each accident resulting in a bodily in- jury 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 in a bodily injury or death to more than one person of not less than Three Hundred Thousant 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 the City of Lubbock of continuance in force of said policies and said policies shall be so worked as to insure ten (10) days notice of cancellation or any modifi- cation of such policy to the City of Lubbock. Said policies shall be subject to the approval of the City of Lubbock. L. 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 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. M. INSPECTION OF BOOKS AND RECORDS Lessee shall maintain complete books and records of all transactions, sales and income resulting from its operation at Lubbock Regional Airport which books and records may be inspected at anytime -7- by the City or its duly authorized representatives 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 the City's discretion, however, any and all expenses in- curred by so doing shall be reimbursed by the Lessee. Lessee agrees to furnish facts and figures necessary to determine the amount to be paid City together with a signed statement certified by a Certified Public Accountant that said figures are correct and properly stated. N. 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. The Ctiy shall have the right at all reasonable times to enter upon the pre- mises for the purpose of inspecting the premises under Lessee's control. O. MAINTENANCE Lessee shall, except as provided under Section A above, at its sole cost and expense, maintain the demised premises and the buildings, improvements and appurtenances thereto, in a presentable condition consistent with good business practice. Condition of leased premises as of July 1 , 19 76 shall be considered the acceptable standard. The City reserves the right to improve the premises at City cost thus establishing new standards. 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 improvements; 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. main- tenance is not undertaken by Lessee within twenty days after receipt of written notice, Lessor shall have the right to enter upon the demised -8- premises and perform the necessary maintenance, the cost of which shall be borne by Lessee. P. 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. Q. 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 opera- tion of its business. R. SIGNS 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. S. INDEMNITY Lessee agrees to hold the City free and harmless from toss from each and every claim, and demand of whatsoever nature made on behalf of or by any person or persons resulting from Lessee's op- eration and/or use of the leased premises by the Lessees, its agents, ser- vants, employees, and from all loss and damages by reason of negligence of the Lessee, its agents, servants and employees. T. USE OF AIRPORT During the term of this lease, Lessee and its tenants shalt have the free and non-exclusive use in common with others at the airport, runways, ramps, parking area 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. ISM If during the term of this agreement, the use of the airport by Lessee or its tenants is temporarily suspended, restricted, or interferred with for a period of ten (10) days or more for reasons beyond the practical control of the City in such manner as 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. U. WORKMEN'S COMPENSATION Lessee shall furnish to the City of Lubbock satisfactory evidence. that it carries Workmen's Compensation Insurance in accordance with the laws of the State of Texas. V. IMPROVEMENTS Lessee shall not make, except as provided in Section A. above, permit, or suffer any additions, improvements or alterations to the property which constitute any major structural change or changes without 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 ti�le to the addition or improvements so made shall vest in the Lessee, title thereto shall at all times remain in the City and such additions or im- provements shall be subject to all terms and conditions of this instrument. The Lessee agrees to hold the City harmless from Mechanic's and Material - man's Liens arising from any construction, additions, improvements, repairs or alterations effected by the Lessee. W. 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 or invitees. X. VEHICULAR MOVEMENT Lessee will not permit the driving of vehicles by its employees,- customers, mployees,customers, guests or invitees on the apron, taxiways, or runways except specifically authorized vehicles. -10- 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 obstruc- tion, 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 the City, 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.. structural design, color, materials, used, landscaping and maintenance of. Lessee's facilities and leased premises. D. UTILITIES Lessor agrees to construct the necessary sewage facilities to serve Lessee where Lessee may connect at .the edge of leased premises. E. INGRESS AND EGRESS Lessor agrees to permit Lessee public ingress and egress to its leased permises. F. TAXIWAY Lessor agrees to construct a connecting taxiway for the aeronautical use of Lessee's customers, patrons, employees, guests and invitees. -11- 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 conting- encies without liability to the City of Lubbock: 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 perverting 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 City of Lubbock of any of the terms, covenants or conditions of this agreement to be kept, performed and ob- served by the City of Lubbock,. and the failure of the City of Lubbock 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 concellation by the City of Lubbock in the event of the happening of any one or more of the following contingencies: 1 . If the Lessee shall file a voluntary petition of bank- ruptcy; 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 shall be divested of its rights, powers and provileges under this agreement by other operation of law. -12- 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 per— formed, er formed, 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, Cuty of Lubbock; or Director of Aviation of the City of Lubbock. City of Lubbock shall give written notice to Lessee to cprrect or cure 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 complain- ed of shell not have been corrected in a manner satisfactory to the City of Lubbock, then and in such event, authority 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 (A) hereof, this agreement shall be deemed to be breached by Lessee and therupon "ipso facto" and without entry or any othe action by City of Lubbock the agreement shall terminate, subject to be reinstated only if such involuntary bankruptcy or insolvency proceedings, petition for organization trusteeship, receivership or other legal act divest- ing Lessee of its rights under this agreement shall be denied, set aside, vacated or terminated in Lessee's favor within tk)irty (30) days from the happening of the contingency. Upon the happening of said latter events, this agreement shall be reinstated 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, -13- 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 shall likewise fully perform and discharge all other obligations which, may have accrued and become payable in the interim, and, Provided, further, that in the event that defaults, failure to perform and breaches by Lessee of its obligations under this agreement to be performed, kept and observed by it shall recur from time to time, then upon written recommendation by the Director or Aviation to City of Lubbock, the City of Lubbock may terminate this agreement. City of Lubbock shall give written notice of such termination to said Lessee and the agreement shall terminate within ten (10) days from the date of said notice. The acceptance of rentals and fees by the City 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 the City of Lubbock to cancel this agreement for failure by Lessee to so perform, keep or observe any of the terms, covenants or conditions hereof to be performed, kept. and observed. No waiver by the City of Lubbock or any of the terms of this agrpement to be kept, performed and observed by the Lessee shall be construed to be or act as a waiver by the City of Lubbock or 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 theron 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, as repaired and improved as of July 1 , 19 76 , reasonable wear and tear and damage by fire or the elements excepted if requested by the City of Lubbock at the City's option upon thirty (30) days written notice prior to expiration. In the event of the failure on the part of Lessee to im- mediately remove from the premises all property owned by it under the requirements set forth in this paragraph, the City of Lubbock may effect -14- such removal and store such property at Lessee's expense. Lessee covenants and agrees to pay all reasonable costs, attorney's fees and expenses that shall be incurred by the City of Lubbock in enforcing the covenants and conditions of this agreement, in the event the Lessee fails to pay expenses within thirty (30) days such property will be deemed abandoned and title will revert to the City; however,. this in no way relieves the Lessee of the debt incurred. In the event Lessor terminates this agreement for cause as contained herein or if Lessee discontinues Fixed Base Operation at any time prior to expiration the City retains ownership to Lessee's improvements to the extent of the rentals due. for the then remaining term. In the event Lessee abandons or voluntarily terminates this lease prior to expiration date, any and all improvements and repairs not fully reimbursed to Lessee, Lessee shall and does convey to City all rights and title Lessee may have by virtue of making improvements and repairs herein agreed upon. 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 BANKRUPTCY, RECEIVERSHIP OR INSOLVENCY If Lessee makes an assignment for the benefit of creditors, or if Lessee' petitions or applies to any tribunal for the appointment of a trustee or receiver of Lessee under any bankruptcy, reorganization arrange- ment, insolvency, readjustment of debt, dissolution or liquidation of law of any jurisdiction, whether now or hereafter in effect; or if any such petition or application is filed, or .any such proceedings are commenced, against Lessee, or Lessee by any act indicated its approval thereof, consent thereto, or acquiescence therein, or any order is entered appointing any such trustee or receiver, or adjudicating Lessee bankrupt or insolvent, or approving the petition in any such proceedings, the City at its option may -15- by notice in writing to Lessee declare this agreement terminated. ARTICLE VIII NOTICE ' Any required notice to the City provided for herein shall be sufficient if sent by registered or certified mail, postage prepaid, to the Director of Aviation, Route 3, Box 201, Lubbock, Texas, 79401, and any such notice to the Lessee shall be sufficient if sent in the same manner addressed to Jack Ridpath, Ridpath Aviation P.O: Box HH, Levelland, Texas 79336 Or such other addresses as may be designated by the City or Lessee in writing from time to time. IN WITNESS WHEREOF, the parties have executed this agreement this C�17 Y day ofli�t if 4a'V 19 % ,� , by its duly authorized officers. WITNESS LUBBOCK RE O APPROVED AS TO FORM: B _ City Attorney WITNESS -16- GI NAL AIRPGRT BOARD By; Dif,ector of Aviation LESSEE ,�... Title 2000 IiffT !:RVO(R ........................ FUTURE FAA i---' 13 CONTROL : TOWER SITE I ME LUBBOCK REGIONAL AlKWUM LUBSOCK,TEXAS FIXED BASE OPERATOR LEASE SPACE