HomeMy WebLinkAbout05793 ORD - 06/22/1960BWS:BB :6 -6 -60
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AN ORDINANCE
AUTHORIZING AND DIRECTING THE CITY MANAGER, FOR
AND ON BEHALF OF THE CITY OF CORPUS CHRISTI, TO
ACCEPT AND APPROVE AN ASSIGNMENT AGREEMENT BETWEEN
THE CORPUS CHRISTI BANK & TRUST COMPANY, TRUSTEE,
AND THE UNION NEWS COMPANY, A DIVISION OF THE
MERICAN NEWS COMPANY, COVERING THE RESTAURANT
FACILITIES AT THE NEW INTERNATIONAL AIRPORT, A
�r COPY OF SAID ASSIGNMENT AGREEMENT,BEING ATTACHED -
I HERETO AND MADE A PART HEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS
1 :(\\ CHRISTI, TEXAS:
I SECTION 1. THAT THE CITY MANAGER 1S HEREBY AUTHORIZED AND
DIRECTED, FOR AND ON BEHALF OF THE CITY OF CORPUS CHRISTI, TO ACCEPT
AND APPROVE AN ASSIGNMENT AGREEMENT BETWEEN THE CORPUS CHRISTI BANK
& TRUST COMPANY, TRUSTEE, AND THE UNION NEWS COMPANY, A DIVISION OF
THE AMERICAN NEWS COMPANY, COVERING THE RESTAURANT FACILITIES AT
THE NEW INTERNATIONAL AIRPORT, A COPY OF SAID ASSIGNMENT AGREEMENT
15 ATTACHED HERETO AND MADE A PART HEREOF FOR ALL INTENTS AND PURPOSES
AS IF COPIED VERBATIM HEREIN. THE CITY MANAGER IS INSTRUCTED, HOWEVER,
TO ACCEPT AND APPROVE THE AFORESAID ASSIGNMENT AGREEMENT ON OR AFTER THE
DATE THAT THE CITY EXECUTES A LEASE AGREEMENT WITH THE CORPUS CHRISTI
BANK & TRUST COMPANY, TRUSTEE, FOR THE LEASING BY THE CITY TO THE SAID
BANK OF THE LEASE PLOTS ON THE NEW INTERNATIONAL AIRPORT SITE 50 THAT
THE ACCEPTANCE AND APPROVAL BY THE CITY OF SAID ASSIGNMENT AGREEMENT
SHALL BE DONE CONTEMPORANEOUSLY WITH THE LEASING OF SAID AIRPORT LANDS
TO THE AFORESAID BANK, AND THE ASSIGNMENT BY SAID BANK TO THE UNION
NEWS COMPANY.
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ASSIGNMENT OF LEASE
RESTAURANT
CORPUS CHRISTI INTEWAT/ONAL AIRPORT
THE STATE 0! TEXAS
- COUNTY OF NUECES I
This agreementmadeioy'and between the Corpus Christi
Bank & Trust Company,-Trustee,-,bereinafter referred to as Assign-
or, and the Union News Company, a Division'of the American News
Company, a corporation organ14.4d and existing under the Laws of
Delaware -
the State ofaxxAkrAx, with principal offices located at 131
Varick Street, New,York City, New York,bereinafter referred to
as Assignee,
WITNESSETH:
WHEREAS, the Assignor herein, the Corpus Christi Bank _
& Trust Company, Trustee, has, by agreement with the City of
Corpus Christi, legally 'become the Lessor of certain lands, lease
sites, and those portions, of the Terminal Building designated for
restaurantfacilities, located within the site of the new Corpus
Christi International Airport, Nueces County, Texas, and
WHEREAS, the aforesaid agreement,between the Corpus
_Christi Bank & Trust Company, Trustee, and the City of Corpus
Christi, was duly and legally approved by the qualified voters
at an election held on August 29, 1959, and
WHEREAS, ,the City, of Corpus Christi proposes to maintain
and operate the new international airport as a public airport and
all uses incident thereto, for the benefit of the,pnblic, and
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tREREAS, Assignee proposes to engage, directly or
through a Sub-Assignee, in the restaurant business, as hereinafter- -t
defined, at the new Corpus Christi InternationalAirport, and
WHEREAS, Assignor deems it advantageous to assign unto _
Atsignee that certain portion of the Terminal Building designated
for restaurant facilities, described hereinafter, together with
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those privileges, rights, uses and interests incident thereto,
as hereinafter set out, and
WHEREAS, Assignee desires to obtain and avail itself
o2 said area, or portion of said Terminal Building, as hereinafter
described, and of those privileges, rights, use and interests
incident thereto, as hereinafter set out
NOW, THEREFORE, IN CONSIDERATION OF THE PREMISES and
for and in consideration of the charges, fees, rentals, covenants
and agreements contained herein, the parties hereto do hereby
agree as follows:
ART CLEI
,DESCRIPTION OF ASSIGNED SPACE
Assignor does hereby assign unto Assignee, subject to
all o2 the terms. conditions and covenants of this agreement, the -
area within the Terminal Building at the new Corpus Christi Inter-
national Airport designed for and set sside for restaurant uses,
Including the kitchen, rest rooms, storage rooms, eo2fee shop and
dining room areas, all within the area as shown on the attached
drawing marked "Exhibit A`' and as outlined therein. Said "Exhibit
AO' is attached hereto and made a part hereof for all Intents and
purposes as if copied verbatim herein.
ARTICLE II
PRIVILEGES, RIGHTS. USES AND INTERESTS
In addition to the privileges, rights, uses and inter-
ests attaching to the assigned premises by virtue of the assign-
ment, the following uses, rights and interests are hereby agreed
upon by and between the parties:
A. USE OF ASSIGNED,PREMISES. Assignee shall use the
premises herein assigned for the operation of a firs: class res-
taurant as herein defined,
B. DEFINITION. First Class Restaurant" shall be
defined and construed as the normal usage of said words imply
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'and shall include the business of preparing -and selling food,
drink and other incidental items and services in connection
therewith to the public. Said business shall be conducted with
in the assigned premises as shown on the aforesaid "Exhibit
- except as-otherwise mentioned herein, with appropriate counter
or coffee shop and dining'room facilities.
G. GENERAL PRIVILEGES, RIGATS, USES AND INTERESTS.
1, In addition to the assigned premises, as
described in the aforesaid "Fachibit A ", Assignee shall have the
right of access, Ingress and egrese to and from such apace and ,
auch building, by Assignee and Assignee's employees, agents,
servants, suppliers, servicemen, business visitors, licensees,
guests, patrons and - invitees. Such access, ingress and egress
shall be in common with others And shall be subject to,the rea-
aonable.regulations and controller safety reasons by the Airport
Manager.
2. to addition to the,aasigned_epace,-as shown
on the aforesaid "Exhibit A "', Assignee shall have the right to
use the tunnel which leads from the service court to the base -
went, and the right to use the stairway from the basement to the
assigned space, but it is- specifically understood that the.right-
to use the tunnel shall be in common with others, eo authori:.ed,'
and the - employees of the city of Corpus Christi.
'3'- Assignee shall have the right to use the
service_court and the loading and unloading ramp immediately ad-
jacent to the tunnel, which usage shall be in common with others. -
Aasignee -may from time to time have the right to use other public
areas of the airport, provided that Assignee shall seek the per-
mission of the Airport Manager and shall abide by all reasonable-
rules and regulation, of the'Asaignor and the Airport Manager in
connection with the use of such other pubic areas on the airport.
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4. Assignee shall have the right to use the
waste dieposel building' and facilities for cleaning garbage cane
and other garbage handling equipment, which building and facili-
ties is located on the northwest edge of the main airline apron.
Tha- use of such building and facilities shall be in common with
others.
5. Assignee shall have the right to place and -
erect signs-and advertising material within the assigned premises
at'Assignee ` s- discretion, so long -as said signs and advertising
materials are in- keeping with the - general -decor of the Terminal
Building. - Provided, however, that all signs and advertising ma
serials which require bolting or fastening into the walls, ceiling
or structural part of the Terminal Building.ehall be first sub-
mitted to the Airport Manager for approval prior to the installa-
tion thereof.. Assignee shall further be entitled to place and
erect signs and advertising material at other locations on the
airport to advertise its restaurant business and to indicate the
location thereof, provided that the size and shape of euch.signs
and advertising material shall conform to the general appearance -
of the airport and building.- thereon, -and provided that written .
permission is first obtained from the Airport Manager prior to the
installation of -such signs and materials.
D. PRIVILEGES, RIGHT4 USES AND INTERESTS EXCLUDED.
It.is specifically agreed and stipulated that the fol-
lowing concessions, privileges, rights and use. are excluded and
that Assignee shr+il not-have the right to engage or avail itself
of said.concessions, privileges, rights and usee_un1eas Assignee
shall happen -to enter into another assignment or agreement with -
Aseignor granting one or more of said concessions. The excluded
concesaions,-privilegee, rights, uses and interests are as follows,
to -wit:
1. Ground transportation for hire.
2. Western Union.
3. Automobile rental service,
4. News and sundry sales.
5. Advertising concessions.
6. Barber, valet and personal services.'
7. sales of aviation parts, products and sup-
plies normally offered for sale by hangar
lease operators.
8. The operation of food and /or drink dispensing
machines at any location on the airport,
other than within the assigned space.
9. - Aircraft food catering, which includes all
aircraft using the airport.
ARTICLE III.
TERM.
This assigament'and agreement shall be fora period of-
five (5) years, subject-to the right of termination hereinafter '
provided. The term shall commence on the 1 S tt day of
A.D. 1960, and shall terminate - five -(5) years from said date.
At the end of the_said five (5) year period, Assignee shall -have
an option to retain the premises for an- additional five (5) year
period, upon the same terms and conditions as herein set out, pro--
vided Asaigoee shall notify the City of Corpus Christi in writing
at least six (6)- months prior to'the end. of the aforesaid five -
(5) year primary term that Assignee wishes to exercise its op-
tions rovided, hownvar, that- -upon xaceipt -of- said- notice in
writing fr Assignee, the City of Corpus Ghridti shall have a
period of sixtydays in which to notify Aesignee that the
City wishes to renegotiate the rentals. If the City wishes to
renegotiate the rentals on a basie different from the rentals
set out herein, then the City shall notify the Assignee in writing
within said sixty (60) day period and the additional'"five (5)
year option period shell be subject to a satisfactory - agreement
as-to - the - rentals.- - = -_-
ARTICLE IV,
RENTALS
Assignee agrees to pay, and Assignor and /or the City of
Corpus Christi agrees to accept, as rental and in consideration
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of the privileges, rights,' uses and interests herein assigned,
eight (8%) percent of the gross income, as hereinafter defined,
from the operation Of Assignee's aforesaid restaurant business,
or a minimum guaranteed rental of Five Thousand ($5,000.00) Dol-
lars per year, whichever is greater. - Assignee agrees to pay the
aforesaid eight-(87) percent'of , the gross income on ,a monthly'
basis, with an accounting to be made-at the end of each year to
determine whether or not eight (8%) percent of the gross income-
exceed' the Five Thousand ($5,000.00) Dollar minimum annual guar-
antee. In -the event that said accounting discloses that the
monthly paymente,under the eight -(8'I) percent of gross, amounts
to less than Five Thousand ($5,000.00) Dollars, then Assignee
agrees to pay the difference at the time of the accounting. -
It ie specifically agreed, however, that the rentals
hereunder shall not begin until Assignee opens its restaurant
for business. On the 'first day of the calendar month Immediately
following the month that Assignee opens for business, Assignee
agi°+ee& to prepare a report in writing, on a form approved by the
City, showing the gross income during the preceding calendar
month, and Assignee agrees to submit said report to the City
along with the rental to be paid, computed on the eight (87) per -
fifteenth(15th)
- cent of gross bests , prior, to the tenth 410th) day of said month.
Assignee obeli submit a like report and payment therefor for each
succeeding calendar month thereafter. At the end of the first
calendar year after this assignment begins, Assignee agrees to
provide a certified copy of an audit.o2 Assignee's restaurant
business as hereinafter mentioned,: If Assignee has not been in-
business for the full twelve (12) month period, then the Five
Thousand ($5,000.00) Dollars per year minimum annual guarantee
shall be. computed 'on the basis of Four Hundred Fifteen and 15/100
($415.15) Dollars per month for each month that Assignee has been
in business. In the event that the previous payments that have
been made upon the basis of eight (87) percent of gross does no;:
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-equal that amonnt, then Assignee agrees to pay the difference
at that time.
A. DEFINITION 0? GROSS INCOME. In order to deter-
mine the rental as hereinabove provided "gross income" shall be
defined as the total of all income and proceeds to Assignee by
and through Assignee's restaurant business, including both cash
and credit tran9aCtiOn$0 except the amount of any Federal, State or
Municipal sales,,tobacco, or similar taxes collected from customers.,
' B. RECORDS, In order to determine Assignee's
income and in order to provide the above mentioned written state-
ments and reports, Assignee agrees- to keep full and accurate
records of all transactions, sales, . receipts and income, both
from cash sales and from Credit sales in any way connected with
Assignee's restaurant business, Assignee:4s hooks end records - -
covering sales shail be open to inspection 1,y the City of Corpus.
Christi at reasonable times. Assignee agrees that a certified
copy of a yearly audit of Assignee's restaurant business showing
all sales will be provided to the City of Corpus Christi each
year during the term of this assignment.
C. PLACE Of PAYMENT. The City of Corpus Christi
hereby appoints its Airport Manager as Lts agent to receive all
rentals, reports and audits under this agreement, and Assignee
hereby agrees to submit the aforementioned reports, audits and
payments to the Airport Manager. It id, however, specifically
agreed that the City may designate others as agents to inspect and
audit Assignes'a books and records, as above mentioned, provided
such inspections and audits are performed at reasonable times
during working hours.
ARTICLE V.
UNDERTAKINGS OF THE CITY OF CORPUS CHRISTI
The City of Corpus Christi covenants and agrees as
follows, to-wit:
A. To operate the new Corpus Christi internat./on-
al Airport as a public airport during the terms of this assignment,
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subject to its agreement with the United States Government and
the Federal Aviation Agency and subject to the conditions and
happenings contained in Article VIII of this Agreement.
B. To provide the assigned space within the Terminal
Building of the ,Corpus Christi International Airport as described
above. The assigned space shall be in a completed construction
stage as far as the floors, walls, stairways, ceilings, air con-
ditioning, heating, and lighting equipment is concerned; and to
provide "roughed in" outlets for public utility_ services inc1 "1Jng
water, electric power and gas. Complete toilet facilities will
be provided.
C. To repair and maintain in good, condition the
basic Terminal Building structure and to maintain the grounds
and the Terminal Building and the public portions of the airport
in a. neat and orderly manner.
ARTICLE VI.
UNDERTAKINGS OF ASSIGNEE
Assignee does hereby, as additional consideration,
agree as follows, to -wit:
A. To provide at Assignee's own cost a counter
or coffee bar with stools and such other parts of equipment neces-
sary to equip the area within the assigned premises designed for
a coffee shop. To provide a display case:and /or counter or
check -out stand facilities. To provide at Assignee's coat all
of the necessary stoves, ovens, dish washers, refrigeration equip-
ment, work tables, drains boards, sinks, and such other equipment
necessary to properly equip Assignee's kitchen and to provide at
Assignee's owe cost all of the necessary tables, chairs, and
other furniture to properly equip the dining room area. Assignee
further agrees to provide et its oan cost all of the necessary
plates, silver ware,_linen, napkins, and other equipment known
in the trade as 'soft goods" for the operation of Assignee's res-
taurant.
B. To provide at Assignee's own cost the necee-
aary labor and equipment to connect Assignee's stoves, dish
washers, and other equips nt to the "roughed in" utility Outlets
provided by the City, and, in the event that it becomes necessary
or Assignee willies to extend the utilities within the apace for
the installation of equipment in places other than where the City
has provided utilities, Assignee agrees to provide the necessary
work and labor at its_own cost for such extensions.
C. To provide at Assignee's expense all managers,
cooks, kitchen help, waiters, waitresses and other food dispen-
sers, and all employees and servants necessary for the efficient
and satisfactory operation'of the restaurant business, and to
render prompt and courteous,service to the public and the users of
said services.
D. To keep in stock and have ready for sale at
all times a reasonable supply of all food and drink normally and
reasonably provided and furnished by a restaurant, and to charge
reasonable prices therefor. Assignee specifically agrees that
the Manager of the new Corpus Christi International Airport or a
duly authorlad representative of the City of Corpus Christi may
at reasonable times be entitled to inspect Assignee's supply of
commodities offered for sale, the prepared food and the manner in
which it is being dispensed, and the prices charged.
E.- Assignee ahall_dresa its servants and employees
in uniforms or in•euch,other manner as to make,a neat and orderly
appearance. Assignee further agrees that it shall prohibit and
restrain its agents, servants and employees fram loud and persis-
tent announcements of its wares on or about the assigned premises.
F. Assignee shall display only such signs or ad-
vertising materials as will be in keeping with the general appear-
ance of the airport and Aselgee agrees that before placing any
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signs or.advertising material on airport property that approval
shall be obtained from the Airport Manager as to the size, place,
looks, manner of display and subject matter.
G. Assignee shall at all times and at its own
cost and expense take good care of the assigned premises and ail
the equipment installed by Assignee. Assignee shall -be responsi-
ble for all repairs, maintenance and improvements to all of the
equipment installed and owned by Assignee. During the terms of
this agreement Assignee shall at its awn cost and expense keep
the inside of the assigned space including the walls and the cov-
ering over the assigned space painted. Provided, however, that
the cost of the painting of overhead, air conditioning and plumb-
ing shall be borne and performed by the City of Corpus Christi
and that the perai.ssLon of the Airport Manager Will be obtained
prior to any such painting by Assignee with respect to color, type
of paint and manner in which the painting is to be performed.
H. Assignee shall keep the assigned premises
clean, neat and orderly at all times, and shall provide a complete
and proper arrangement for -the sanitary handling and disposal of
all'trash, garbage and otter refuse caused as a result of the
operation of the restaurant.
1. Assignee agrees that it will make no struc-
tural changes in tine assigned - premises without the prior written
consent of the Airport Manager.
J. Assignee shall comply, at its own cost and
expense, with all Federal, State or local laws, ordinances, rules
or regulations, now or hereafter in force, which may be applicable
to Assignee's business; and shall obtain and pay for all fees and
charges assessed under Federal, State or local laws, ordinances
and rules or regulations. Assignee ahall pay all taxes levied
against property owned by Assignee, together with all taxes that -
may be levied by any governmental authority against Assignee's
business.
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/44 Assignee shall not use, suffer or permit any
person to use the premises ,:covered by this agreement for any ille-
_gal, immoral or bawdy purposes, and Assigneashall protect, indei-
nify and save harmless. Assignor and the City of Corpus Christi
„-' from and 'against any fine, judgment, expense or
- charge which may be suffered, imposed, assessed or incurred by
reason of the violation, diaregardor,breach,of.any law, ordinance,
,rule or-regulation-or by reaaon of any act, neglect or omission on
the part of Assignees= any of Aisignee's agents,' servants and/or
employees, and Assignee specifically agrees to save and hold AA-,
signor and the.City of Corpus Christi harnless and to indemnify As-
aignor
and the City of Corpus Christi from any claim, judgment or
_ expense asserted by any vieltor, patron, agent, servant or employee
of Assignee for personal injury and/or property damage. -
- _ _ L. Assignee shal/ pay for all electric power, -gas
and other utilities except water used by Assignee. The City of
CorpUs,Clristi and/or the, other public utility suppliers
provide meters for the aforesaid utilities and Assignee agrees to
pay for such utilities on a monthly basis according to the amount .
- of energy, Or gas or other_utility Oonsumed, except water. The
electrical energy shall be paid far at the aame race that the
City pays to the Central Poweriand bight Company for electrical:
energy provided on the airport,
M. Assignee agrees that it will at the end of
the term of this agreenent remove all of its equipment installed -.
and/or-located on-the assigned space and to deliver up the -press,
isesiin the same condition as at the beginning of the agreement,
reasonable depreciation and near exceptect-.
'Assignee'specifically agrees, in addition to
the agreements containe& hereinabove, that Assignee will comply
with all of the rules, regulations and/or orders of the City and/
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or County Health Department,, and shall keep exhibited at all times
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all applicable health permits. Assignee further agrees that all
of Assignee's agents, servants and employees shall abide by the
rules and regulations imposed by the City and Airport Manager with
respect to the operation of the airport, the ramps and aprons and
the use thereof by aircraft persons and equipment.
O. Assignee agrees to, furnish good, prompt and
efficient service adequate to meat the demands for restaurant
service at the airport; to furnish said service on a fair, aquas.,
and non - discriminatory bests to all users of the airport, and to
charge fair, reasonable, and non - discriminatory prices for each
sale or service. provided, however, that Assignee may be allowed
to make reasonable and non- discriminatory discounts, rebates, or
other similar types of price reductions to volume purchasers.
,AancLE vu.
GENERAL P OVCSIONS
1. NOTICES. All notices to Assignor and the City of
Corpus Christi shall be deemed sufficient if in writing and -
mailed, postage prepaid, addressed to the following:
CITY MANAGER
CITY or CORPUS CHRISTI P.O. box 1822 -
CORPUS CHRISTI.'TexAR
Notices to Assignee shall be deemed sufficient if
in writing and mailed, postage prepaid, addressed to Assignee at
131 Varick Street _
New York 13, New York
2. It is expressly understood and agreed by and be-
tween all of the parties hereto that Assignee is and shall be
deemed to be an independent contractor and operator responsible
to all parties for its acts or omissions, and the Assignor and
the City of Corpus Christi shall in no wise be responsible there-
for. Assignee further states that Assignee has, on the date of
the beginning of this agreement, inspected the premises and is
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familiar with the condition of same. Assignee agrees to indent-
nify and save and hold harmless Assignor and the City of-Corpus
Christi from any and all loses that may proximately result to '
Assignor and/or the City'of Corpus Christi from any negligence
on the part -of Assignee, Assignee further agrees to carry public
Two hundied,thousand
liability insurance in a minimum sum of Dollars
(200,000400) . Five hundred thousand - (500,10i00)
)
for one person and - Dollars ($
two or more persons, and in addition thereto carry a minimum of
($5b,000.00)
Fifty Thousand- ,Dollars ($ ) insurance for property
damage liability. All insurance shall be carried in a responsible
and reputable company, All policies shall contain the following
clause:
"It is understood and agreed that the Airport Manager
of the City of Corpus Christi, Texas, will be notified
in the event of any renewal or cancellation of this
policy and that this policy will remain in full force
and effect until thirty (30) days after such notice
is given."
3. TAXES.
Assignee agrees to pay any and all taxes
or assessments which may be levied against Assignee's personal
property, occupanci, or use of the assigned premises or any
provements placed thereon by Assignee.
41: In any action brOught-by Assignor and/or .the City
of Corpui Christi for the enforcement of the obligations of this
aasignment and agreement, Assignor and/or-the City of Corpus
Christi shall be entitled to recover interest and reasonable
at-
torney-a fees.
5. It is expressly agreed that no contract, assign--
:gent, lease, or agreement shall be entered into by Assignor or.
the City of Corpus Christi with any other person, company, firm,-
corporation or partnership for space in the new airport for a
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restaurant during the tern of this agreement, except that in the
event the motel is constructed along Highwey,44 on airport lands,
said motel may be allowed to install and - operate a coffee shop
and/or restaurant.
6. All of the paragraph headings contained herein are
for convenience and - reference and are not intended to define or
limit the scope of any provision of this agreement.
-ARTICLE VIII.
DESTRUCTION, SUBORDINATION. TERMINATION.,
CANCELLATION ASSIGNMENT TRANSFER AND SUB -LEASE
1. DESTRUCTION. In the event that the Terminal Build-
ing or airport is damaged or destroyed by acts of God or through
enemy attack or for any other reason outside the control of Assign-
or and /or the City of Corpuo Christi to such an extent that the
airport cannot be operated as an airport, then thin agreement
shall terminate and shall no longer be binding 4in any party hereto.
In the event the assigned premises or the Terminal Build-
ing or the other airport facilities reasonable and necessary for
Assignee to conduct Assignee /s restaurant are partially destroyed
or damaged due to acts of. God or other acts outside the control
of the Assignor or the City of Corpus Christi to such an extent
that the assigned premises may not economically be uacd for the
uses and purposes for which assigned, then this agreement and
assignment shall be suspended during the period of such partial
damage or destruction and -shall not begin or resume until the
City of Corpus Christi has repaired such damage. It is expressly
understood, havaver, that the City o2 Corpus Christi shall deter-
mine and shall be the sole judge of the extent of the damage ar:'
dearruct.on and shall have an option to either declare this lease
terminated or suspended or co repair the premises.
2. SUBORDINATION. This assignment and agreement shall
be subordinate to the provisions of any existing or future agree-
meat between the City of Corpus Christi and the United States rela-
tive to the operat a or mLutPonnco 02 the airport, the execution
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of which has been or may be required as a condition to the ex-
penditure of Federal fends for the development of the airport.
Should the effect of such agreement with the United States be to
take any of the premises under this assignment out frame under the
control of theCity of Corpus Christi or t� substantially destroy
the commercial value of the assigned premises, then Cora_; i.3:
tit provide adequate premises to Assignee or this agreement ehall
terminate and be no longer Ia force.
3. TERMINATION. This lease shall terminate at the
end of the Five (5) year period set forth in Article III herein -
above and Assignee shall have no further right or interest in any
of the assigned premises or in any of the privileges, rights,
uees or interests contained in this agreement, and Assignee agrees
to vacate and remove all equipment, stoves, dishes, articles nor-
mally used is restaurant operation, and other personal prosy
belonging to Assignee and to deliver up the premises in the con-
dition that they were in at the beginning of this agreement, normal
age, wear and tear excepted. Ebeever, if the Assignee deoires to
exercise the option for an additional Five (5) year term ea des -
cribed in Article III hereinabove. and - terns- on-the- add +.ions -op--
tton -per-i y- agreed - upon -by- the -Assignee- and - tie -City-
then the tennis tion shall be extended for the additional Five (5)
year option period, at 'Aide time the termination as hereinabove
set forth at the end of the primary period shall apply. Assignee
obeli have Ten (10) days tathin wh ch to remove Asst nee's equip-
ment and personal property, and in the event that Assignee fails
to do so, Assignor and /or the City of Corpus Christi uny do no
without liability and Assignee agrees to reimburse Assignor or
the City of Corpus Christi for ite expense.
4. CAWCFra'rATIILL Default t of payment of any of the
- rentals provided for hereinabove shall give Assignor and /or the
15 -
/QS :bb : 5-18-60
City of Corpus Christi the right to terminate this agreement at
any time after Thirty (30) days notice in writing has been given
to Assignee, unless within said time Assignee'bau fully complied
with the rental provisions, -
i)afauit of any of the other agreements on the part of
Assignee shall li3cewlwe.givs'Assignor and /or the City of Corpus
Christi the right to terminate this agreement at any time after
Thirty (30)'daye notice in ,writing has been given•to Assignee,
unless within said time /assignee has fully complied with or cor-
vected the condition, provided, however, that Assignor and/or the •
City of Corpus Christi agree to include in this notice it statement
with respect to the article, agreement or condition which Assignor
and /or the City of Corpus Christ!. claims that Assignee is in de-
fault of.' „ -
" 5. The written authority of the City -of Corpus Christi
shall be obtained by Assignee prior to any sale, assignment, trans-
fer or sub-assignmant of this assignment and agreement,
ARTICLE I.Y.
PARTIES TO ASSIGNMENT-AGREEMENT
The Assignor herein, the Corpus Christi Bank & Trust
Company, Trustee, is the Lessee of the premises herein assigned.
The City of Corpus Christi legally leased said premises to the
Assignor herein after securing the approval of the qualified
voters of -the City of Corpus Christi at an election held on
August 29,1959. tinder the lease between the City and the Assign-
or herein, the City retained the right to approve of all assign-
ments and to approve of the terms and conditions cottaibed in
said assignments. This agreement is therefore an assignment of
the above described premises froze the Corpus Christi Bank & Trust
Company, Trustee, to the Assignee herein, and the City of Corpus
Christi agrees that in the event of a judicial determination that
- 16 -
this -assignment egreasent"wee, entered into contrary, to 1 or
-that, the lea�e fro the Gity t� the- Assignot_ herein was entered,
into contrary -to lei, -then the, Cit} :egreas to- -take whatever
- rsaaonably necessary steps may be required to provide the - Assign• --
ea heteinwitb ,a; good and valid lease or assignment cf the spice
hereinabove dmtcttbed. It ie-understoodd' however, that this asaign-
meat and 'agre t'inst be accepted and approved by the
writing noted tferein. before the City, is bound by any et the term
or conditions set forth herein.;'
EXECUTED IN TRIP LtcArM. on this '2t day - of
A. D. 1960.
ASSIGNEE:
The Union News Company,
Division of ,The American News Company''
Vice President
-CORPUS CNRISTT -PAK- & TRUST COMPANY,
TRUSn7..
AgEZ TED AND'APP &QVED .
CITY OP CORPUS, CHRISTI, TEXAS
City Attorney
THAT THE FOREGOING ORDINANCE WAS R AD FOR THE FIR T TIME AND
PASS D TO ITS SECOND READING ON THIS THE DAY OF
19 CO , BY THE FOLLOWING VOTE:
ELLROY KING
JAMES L. BARNARD I
MRS. RAY AIRHEART t,..
JOSEPH B. DUNN
PATRICK J. DUNNE 1'
R. A. HUMBLE
GABE LOZANO, SR.
THAT THE FOREGOING ORDINANCE WAS READ FOR THE
PASSED TO ITS THIRD READING ON THIS THE i r DAY OF
19 (,O , BY THE FOLLOWING VOTE:
ELLROY KING
JAMES L. BARNARD
MRS. RAY AIRHEART
JOSEPH B. DUNN
PATRICK J. DUNNE
R. A. HUMBLE
GABE LOZANO, SR.
SECOND TIME
AND
THAT THE FORE i ORDINANC S READ FOR THE THIRD TIME AND PASSED
FINALLY ON THIS THE R &DAY OF _ 19 l V, BY THE FOLLOWING
VOTE:
T:
ELLROY KING /
JAMES L. BARNARD
MRS. RAY AIRNEART
JOSEPH B. DUNN /
PATRICK J. DUNNE
R. A. HUMBLE
GABE LOZANO, SR./
PASSED AND APPROVED, THIS THE cL 011PAT
CITY SEC
APVED AS TO
DAY OF
FORM THIS
1959:
CITY ATTORNEY
MAYOR ,
THE CI
ISTI, TEXAS
•
J