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HomeMy WebLinkAboutResolution - 687 - Lease Agreement - Air Midwest Inc - Office Space, LIA - 01/08/1981e RESOLUTION #687 - 1/ 8/81 ALA: pc 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 .Space Lease Terminal Agreement between the City of Lubbock and Air Midwest, Inc., 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 8th day of Januar '1981. BILL rALISTFUR, MAYOR ATTEST• ��. elyn Ga_fga, ity Ate ry-Treasurer APPROVED AS TO CONTENT: Ma in Coffee, Di for of Aviation APPROVED AS TO FORM: Angela mas, Assistant City Attorney RESOLUTION #687 - 1/8/81 STATE OF TEXAS § § KNOW ALL MEN BY THESE PRESENT: COUNTY OF LUBBOCK § SPACE LEASE TERMINAL AGREEMENT THIS AGREEMENT, entered into at Lubbock, Texas by and between the CITY OF LUBBOCK, hereinafter referred to as "LESSOR", and AIR MIDWEST, INC., a corporation incorporated under the laws of the State of Kansas with its principal office at Wichita, Kansas, hereinafter referred to as "LESSEE". WHEREAS, LESSOR owns and operates a public airport designated as LUBBOCK INTERNATIONAL AIRPORT herein called "AIRPORT", and WHEREAS, the LESSEE desires to lease a certain area, described herein, for office space; and WHEREAS, LESSEE is .currently operating at the Airport under the Certified Passenger Airline Lease of 3-27-80 and both parties hereto agree that this Space Lease Terminal Agreement shall, in no way affect either parties rights, privileges, liabilities, restrictions, duties or responsibilities under said Certified Airline Lease of 3-27-80, and WHEREAS, it is agreed that 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 be required as a condition precedent to the expenditure of federal funds for the:development of the Airport; and WHEREAS, all right, privileges and interests acquired herein by LESSEE at the option of the LESSOR, following written notice of thirty (30) days, may be suspended or finally terminated if such suspension or termination 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 aeronaut cal operations thereon; 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: An enclosed area underneath Jet Way Number 5 which constitutes 96 square feet, as shown on "Exhibit A" attached hereto and made a part hereof for all purpose. The term of this agreement shall be from month to month for a period not to exceed five years. Either party hereto may terminate this agreement upon thirty (30) days written notice to the non -terminating party. ARTICLE II In consideration of the rights and privileges herein granted, LESSEE shall pay to the LESSOR a rental rate of $8.25 for 96 square feet, i.e. $66.00 per month. The aforesaid rental rate of $8.25 is broken down as follows: $5.63 - fixed fee to cover debt service and $2.62 - maintenance and operation. The $2.62 maintenance and operation portion is subject to adjustment every three years to reflect actual cost, however, in no event shall it exceed the CPI changes for the same three year 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.- The LESSEE shall not make, permit, or suffer any additions, improve- ment 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 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. 3. 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 license. 4. The LESSEE agrees that it will at all times during the term of this license maintain in good and serviceable condition all land, improvements, facilltles and equipment included herein, ordinary wear and tear excepted. 5. Except as provided herein, any property of the LESSOR, or for which the CITY may be responsible, which is damaged or destroyed incident to the exercise of the privileges herein granted shall be properly repaired or re- placed by the LESSEE to the satisfaction of the LESSOR and its authorized rep- resentatives, 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 suf- ficient by the LESSOR to compensate for the loss sustained or expenses incurred by the LESSOR by reason of the loss of, damage to, or destruction of such property. 6. The LESSEE agrees to indemnify, defend and forever save the LESSOR, 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 omissions of the LESSEE, his agents, servants, guests, employees or business visitors under this agreement. 7. The LESSEE shall maintain at all times, as 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 9. 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, improve- ments, 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. 10. 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 provided for the public, in any manner prohibited by 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 (CITY). 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 transfer, recruitment, layoff, rates of pay or other forms of compensation, and selection for training, in- cluding apprenticeship. The LESSEE will conduct its activities and operate its facilities in accordance with the requirements of Section 504 of the Rehabilitation Act of 1973 and will assure that no qualified handicapped person shall, solely by reason of his or her handicap be excluded from participation in, be denied the benefits of, or otherwise be subjected to discrimination, including discrimination in employment, under any program or activity of the LESSEE. 11. The LESSEE warrants that it has not employed any person employed by the LESSOR to solicit or secure this Lease Agreement upon any agreement for a commission, percentage, brokerage, or contingent fee. 12. Except with prior written consent of the LESSOR the LESSEE shall not sublet any part of the premises or assign the license or any of its rights hereunder. 13. The failure of the LESSOR to insist in any one or more instance upon performance of any of the terms or conditions of this license 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. 14. 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. 15. 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. 16. Except for exterior building and structural maintenance by the City, as provided hereinafter in Article IV, LESSEE shall be obligated, without cost to City, to maintain its exclusive leased premises and every part thereof. ARTICLE IV City shall be responsible for and shall perform exterior building maintenance and structural maintenance throughout the Leased premises and, at no additional charge, provide maintenance of mechanical and electrical systems installed by the City. City shall not, however, be required to perform maintenance and make repairs occasioned by the negligence of LESSEE or its employees, agents, servants, patrons, and invitees, in which case the City may perform such maintenance or make such repairs as necessary and charge the costs of the same to the LESSEE, provided LESSEE has failed to perform such maintenance or make such repairs within a reasonable time after a request in writing from the City to do so. Executed this 8th day of January , 1981=1. AIR MIDWEST, INC. CITY OF LUBBOCK, T Gary M. Adamson, President BLL McALI TER, MAYOR ATTEST: ATTEST: E elyn G fg , Citf WWary APPROVED AS TO CONTENT: Axvoo� Marvin Coffee, D ctor of Aviation APPROVED AS TO FORM: An efa'Adfims, Asst. City Attorney t i