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HomeMy WebLinkAbout06613 ORD - 08/29/1962" IMs:j4p:8 -29 -62 AN ORDINANCE .r a AUTHORIZING AND DIRECTING THE CITY MANAGER, FOR AND ON BEHALF OF THE CITY OF CORPUS CHRISTI, TO EXECUTE AN AGREEMENT BETWEEN THE CITY AND HARRINGTON ., AND CORTELYOU, A PARTNERSHIP COMPOSED OF. FRANK. M CORTELYOU, E. M. NEWMAN AND F. M. CORTELYOU, JR, FOR THE ENTERING INTO A 30 -YEAR LEASE BETWEEN THE CITY AND SAID HARRINGTON AND CORTELYOU, SUBJECT TO THE APPROVAL OF THE QUALIFIED VOTERS OF THE CITY, FOR A PORTION OF CITY PROPERTY FORMERLY KNOWN AS CLIFF MAUS AIRPORT FOR THE ESTABLISHMENT AND MAINTENANCE OF A GOLF COURSE AND ACCESSORY FACILITIES, A COPY OF WHICH AGREEMENT AND ATTACHED PROPOSED LEASE ISsATTACHED HERETO AND MADE A PART HEREOF; AND DECLARING AN EMERGENCY. • BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. THE CITY MANAGER BE, AND HE IS HEREBY, AUTHORIZED AND DIRECTED TO EXECUTE, FOR AND ON BEHALF OF THE CITY OF CORPUS CHRISTI, ANA AGREEMENT BETWEEN THE CITY AND HARRINGTON AND CORTELYOU, A PARTNER- . SHIP COMPOSED OF FRANK M. CORTELYOU, E. M. NEWMAN AND F. M. CORTELYOU, JR., FOR THE ENTERING INTO,A 30 —YEAR LEASE BETWEEN THE CITY AND SAID Y HARRI`NGTON AND CORTELYOU, SUBJECT TO THE 4PROVAL OF THE QUALIFIED VOTERS OF THE CITY, FOR A PORTION OF CITY PROPERTY FORMERLY KNOWN AS CLIFF ' MAUS AIRPORT,FOR THE ESTABLISHMENT AND MAINTENANCE OF A GOLF COURSE AND ACCESSORY .FACILITIES, A COPY OF WHICH AGREEMENT AND ATTACHED PROPOSED ,LEASE IS ATTACHED HERETO AND MADE A PART HEREOF. SECTION 2. THE NECESSITY TO IMMEDIATELY AUTHORIZE THE EXECUTION OF THE AFORESAID AGREEMENT BETWEEN THE CITY AND HARRINGTON AND CORTELYOU * FOR THE PURPOSES ABOVE SET FORTH CREATES A PUBLIC EMERGENCY AND AN IM— . PERATIVE PUBLIC NECESSITY REQUIRING THE SUSPENSION OF THE CHARTER RULE THAT NO ORDINANCE OR RESOLUTION SHALL BE PASSED FINALLY ON THE DATE OF ITS INTRODUCTION AND THAT SUCH ORDINANCE OR RESOLUTION SHALL BE READ AT THREE SEVERAL MEETINGS OF THE CITY COUNCIL, AND THE MAYOR HAVING DECLARED SUCH EMERGENCY AND NECESSITY TO EXIST, HAVING REQUESTED THE SUSPENSION'OF SAID CHARTER RULE AND THAT THIS ORDINANCE BE PASSED FINALLY ON THE DATE OF ITS INTRODUCTION AND TAKE EFFECT AND BE IN FULL FORCE AND EFFECT FROM AND AFTER ITS PASSAGE, IT IS ACCORDINGLY SO ORDAINED, THIS THE AY OF AUGUST, 1962. ATT ' MAYOR °tD 18l CI SECRET Y THC CITY OF CORPUS CHRISTI, TEXAS APPROVED AS TO LEGAL FORM THIS ,5LG DAY OF AUGUST, 1962: CITY AT N r ;i; C _ � i • Jsr:EB 8 -28 -62 AGREEMENT WHEREAS, THE CITY OF CORPUS CHRISTI NEEDS AN ADDITIONAL PUBLIC GOLF COURSE FOR THE HEALTH AND RECREATION OF ITS CITIZENS AND THE DEVELOP- MENT OF TOURISM AND IN ITS PLANS FOR THE DEVELOPMENT OF THE CLIFF MAUS AIRPORT PROPERTY HAS PROPOSED THE CONSTRUCTION AND OPERATION OF A PUBLIC 1 GOLF COURSE; AND WHEREAS, THE CITY OF CORPUS CHRISTI DOES NOT HAVE 'FUNDS AVAIL_ a ABLE TO BUILD A GOLF COURSE ON THE PROPERTY AND IT HAS BECOME DESIRABLE TO FINANCE A GOLF COURSE THEREON WITHOUT THE USE OF MONEY FROM EITHER TAXES OR BOND SOURCES AND THE CITY HAS ADVERTISED FOR PROPOSALS TO CON- ' STRUCT AND .OPERATE UNDER A LEASE A PUBLIC GOLF COURSE ON THAT PORTION OF I CLIFF MAUS AIRPORT WHICH LIES WEST OF THE NORTH-SOUTH RUNWAY; AND ° WHEREAS, HARRINGTON & CORTELYOU, A PARTNERSHIP OF FRANK M. CORTELYOU, E. M. NEWMAN AND F. M. CORTELYOU, JR., HAS MADE A PROPOSAL TO THE CITY FOR THE CONSTRUCTION AND OPERATION OF A PUBLIC GOLF COURSE AND APPURTENANT FACILITIES ON THE SAID PROPERTY AND THE PROVISIONS OF A LEASE HAVE BEEN AGREED UPON AND THE CITY AND THE PROPOSER ARE READY AND DESIR- • OUS OF GOING FORWARD WITH THE STEPS NECESSARY TO OBTAIN VOTER APPROVAL: TO THE LEASE AND THE INITIATION OF CONSTRUCTION - THEREUNDER; NOW, THEREFORE, THE CITY OF CORPUS CHRISTI, ACTING HEREIN BY AND THROUGH ITS CITY MANAGER, DULY AUTHORIZED BY THE CITY COUNCIL, HERE- ' INAFTER CALLED "CITY", AND HARRINGTON &. CORTELYOU, A PARTNERSHIP OF FRANK . M.. CORTELYOU, E. M. NEWMAN AND F. M. CORTELYOU, JR., HEREINAFTER CALLED .,"IMPROVER", HAVE ,MADE THE FOLLOWING , AGREEMENTS • x CITY AND IMPROVER AGREE THAT THE FORM OF LEASE ATTACHED HERETO AS EXHIBIT A WILL BE EXECUTED AND DELIVERED- BETWEEN CITY, AS LESSOR, AND IMPROVER, AS.LESSEE, UPON APPROVAL BY gMAJORITY OF THE QUALIFIED VOTERS �OF THE CITY OF CORPUS CHRISTI OF THE ORDINANCE GRANTING THE'LEASE AND THE - .% PASSAGE OF THE ORDINANCE BY THE CITY COUNCIL. THE LEASE SHALL COVER SUB - -- STANTIALLY THAT PORTION OF CLIFF MAUS AIRPORT WHICH LIES WEST OF THE NORTH -SOUTH RUNWAY WITH THE DESCRIPTION TO BE SUBSTANTIALLY AS THAT WHICH' IS ATTACHED HERETO AS EXHIBIT B AND TO CONFORM SUBSTANTIALLY TO THE AREA SHOWN IN RED ON THE MAP ATTACHED HERETO AS EXHIBIT C- II. CITY COUNCIL AGREES TO CALL AN ELECTION AND TO SUBMIT TO THE QUALIFIED VOTERS OF THE CITY, PURSUANT TO THE PROVISIONS OF ARTICLE VIII, SECTION 2 OF THE CITY CHARTER, THE QUESTION OF WHETHER THE CITY COUNCIL SHOULD ENACT AN ORDINANCE GRANTING THE ATTACHED LEASE. SUCH ELECTION SHALL BE CALLED TO BE HELD ON OR BEFORE THE 18TH DAY OF DECEMBER, 1962. IF THE ORDINANCE GRANTING THE LEASE IS APPROVED BY A MAJORITY OF THE VOTERS, THEN CITY COUNCIL AGREES PROMPTLY THEREAFTER TO BEGIN READINGS OF THE ORDINANCE, AND TO READ THE SAME, AT THREE REGULAR MEETINGS OF THE CITY COUNCIL AND TO ENACT THE ORDINANCE IN ANY EVENT ;WITHIN FORTY (40) DAYS FOLLOWING THE DATE OF HOLDING THE ELECTION. IMPROVER. AGREES TO EXECUTE AND ENTER INTO THE SAID LEASE PROMPTLY AFTER FINAL ENACTMENT OF THE ORDINANCE GRANTING THE LEASE, FOLLOWING THE APPROVAL OF THE ORDINANCE BY THE VOTERS OF THE CITY AND TO PAY THE COST OF THREE PUBLICATIONS OF THE LEASE AND ORDINANCE FOLLOW- . ING READINGS OF THE SAME, ALL AS REQUIRED BY ARTICLE VIII, SECTION 3, - OF THE CITY CHARTER. III. PRELIMINARY PLANS TO ILLUSTRATE AND DEVELOP THE GENERAL FEA- TURES OF THE IMPROVEMENTS TO BE PLACED ON THE LEASED PREMISES PURSUANT TO THE ATTACHED LEASE SHALL BE PROVIDED BY IMPROVER FOR APPROVAL BY P CITY AS SOON AS PRACTICABLE AFTER THE EXECUTION OF THIS AGREEMENT. SUCH PRELIMINARY PLANS SHALL INDICATE THE LOCATION OF EACH OF THE'FEA -, "TURFS OF THE PROPOSED IMPROVEMENTS .AND THE GENERAL EXTENT OF EACH AND THE LOCATION OF DRAINAGE DEPRESSION OR SWALE CONTEMPLATED BY ARTICLE XVI I * 'OF THE LEASE.. AFTER. APPROVAL BY CITY rAND IMPROVER OF PRELIMINARY PLANS DRAWINGS WILL BE PREPARED ADEQUATELY TO PRESENT THE PROPOSED FACILITIES TO THE PUBLIC. SUCH MATERIAL SHALL BE SUITABLE FOR PUBLICATION AND OF 1 SUCH SIZE THAT POSTER DISPLAYS MAY BE USED IN PROMINENT LOCATIONS FOR -2- INFORMING THE PUBLIC OF THE GENERAL FEATURES OF THE FACILITIES TO BE PRO- VIDED UNDER THE LEASE. THE PRELIMINARY PLANS] 50 APPROVED BY CITY AND IMPROVER, SHALL BE AND CONSTITUTE THE PRELIMINARY PLANS UPON WHICH FINAL PLANS AND SPECIFICATIONS SHALL BE BASED WHEN PREPARED UNDER THE LEASE, UN- LESS SUCH PRELIMINARY PLANS ARE MODIFIED OR CHANGED BY AGREEMENT OF CITY AND IMPROVER. CITY SHALLy AS SOON AS PRACTICABLE AFTER THE EXECUTION OF THIS AGREEMENT, PROVIDE THE FORM OF ACCOUNTING RECORDS AND SCHEDULE OF AUDITS TO BE REQUIRED UNDER THE LEASE SO THAT THE SAME MAY BE APPROVED PRIOR TO EXECUTION OF THE LEASE. IV. UPON THE APPROVAL OF PRELIMINARY PLANS BY CITY AND IMPROVER, A DEPOSIT OF FIVE THOUSAND DOLLARS ($5,000.00) IN CASH OR NEGOTIABLE U. S. GOVERNMENT SECURITIES SHALL PROMPTLY BE MADE BY IMPROVER WITH CITY AS EARNEST MONEY TO COVER THE COST OF HOLDING A CITY ELECTION FOR AP- PROVAL OF THE ORDINANCE GRANTING THE LEASE AND TO ASSURE THAT IMPROVER ENTERS INTO THE LEASE AND COMPLETES THE PERFORMANCE THEREUNDER WHICH IS HEREINAFTER SET OUT. THE COST OF THE ELECTION WILL BE BORNE BY CITY. IF THE ORDI- NANCE IS NOT APPROVED BY THE VOTERS THE WHOLE OF THE SAID EARNEST MONEY DEPOSIT SHALL BE RETURNED TO IMPROVER WITHIN TEN (10) DAYS AFTER THE ELECTION; OR, IF BEING APPROVED BY THE VOTERS THE ORDINANCE IS NOT FINALLY PASSED AND ENACTED BY CITY COUNCIL WITHIN FORTY (40) DAYS AFTER THE ELECTIONS THE WHOLE OF THE SAID EARNEST MONEY DEPOSIT SHALL BE RE- TURNED TO IMPROVER WITHIN TEN (10) DAYS AFTER THE EXPIRATION OF SUCH PERIOD OF TIME. ' IF THE ORDINANCE 15 APPROVED BY THE VOTERS AND IS ENACTED BY THE CITY COUNCIL AND LEASE IN THE ATTACHED FORM IS EXECUTED AND TENDERED FOR DELIVERY BY CITY IMPROVER SHALL PROMPTLY EXECUTE THE LEASE AND, ADDITIONALLY, SHALL DEPOSIT WITH CITY AN ADDITIONAL FIVE THOUSAND DOLLARS ($5,000.00) IN CASH OR U. S. GOVERNMENT SECURITIES. IF IMPROVER FAILS TO EXECUTE THE LEASE AND MAKE SUCH DEPOSIT WITHIN A PERIOD OF FIFTEEN (15) DAYS AFTER SUCH TENDER OF LEASE, THE ORIGINAL FIVE THOUSAND DOLLARS ($5,000.00) EARNEST MONEY DEPOSIT SHALL BE FORFEITED TO CITY AS ITS LIQUIDATED DAMAGES TO COVER COST OF THE ELECTION AND OTHER DAMAGES. THE ADDITIONAL DEPOSIT WHEN MADE SHALL BE HELD WITH THE ORIGINAL DEPOSIT (A TOTAL OF TEN THOUSAND DOLLARS ($10,000.00)) AS EARNEST MONEY TO ASSURE THAT IMPROVER, AS LESSEE, GOES FORWARD WITH PREPARATION OF FINAL PLANS AND SPECIFICATIONS AND FURNISHING OF A PERFORMANCE AND PAYMENT BOND, AS IS PROVIDED IN THE LEASE, AND IF IMPROVER, AS LESSEE, FAILS TO DO THE SAME, THEN THE EARNEST MONEY DEPOSIT SHALL BE FORFEITED TO CITY AND RETAINED AS ITS LIQUIDATED DAMAGES. UPON PREPARATION AND APPROVAL OF FINAL PLANS AND SPECIFI- CATIONS AND THE FURNISHING OF A PAYMENT AND PERFORMANCE BOND TO CITY IN THE AMOUNT OF $100,000.00 AS IS PROVIDED IN SAID LEASE, THE WHOLE OF THE EARNEST MONEY DEPOSIT OF $10,000.00 SHALL BE RETURNED TO IMPROVER, SUCH SUM TO BE RETURNED WITHIN TEN (10) DAYS AFTER THE DATE SUCH BOND IS FURNISHED. IN WITNESS WHEREOF CITY AND IMPROVER HAVE EXECUTED THIS AGREEMENT AS OF THE DAY OF , 1962. CITY OF CORPUS CHRISTI BY: ATTEST: CITY MANAGER CITY SECRETARY A APPROVED AS TO LEGAL FORM THIS THE DAY OF CITY ATTORNEY HARRINGTON & CORTELYOU BY E. M. NEWMAN, PARTNER IMPROVER EXHIBIT - DESCRIPTION OF CLIFF MAUS WEST OF DRAINAGE DITCH ALL THAT CERTAIN TRACT OR PARCEL OF LAND DESCRIBED AS FOLLOWS, , TO -WIT: BEGINNING AT A POINT IN THE SOUTHEAST RIGHT OF WAY LINE OF OLD BROWNSVILLE ROAD SAID POINT BEARS N 54° �5' 30" E 522.90 FEET MORE OR LESS FROM THE INTERSECTION OF THE SOUTH- EAST BOUNDARY LINE OF OLD 13ROWNSVILLE ROAD AND THE NORTH BOUNDARY LINE OF HORNE ROAD; THENCE IN A NORTHEASTERLY DIRECTION WITH THE SOUTHEAST BOUND- ARY LINE OF OLD BROWNSVILLE ROAD A DISTANCE OF 5,310 FEET MORE OR LESS TO A POINT; THENCE N 66° 45' E A DISTANCE OF 4414 FEET MORE OR LESS TO A POINT. SAID POINT BEING THE POINT OF CURVE OF A CIRCULAR CURVE TO THE RIGHT HAVING A RADIUS OF 80 FEET AND A CENTRAL ANGLE OF 113° 15'; THENCE IN A SOUTHEASTERLY DIRECTION WITH THE ARC OF A CIR- CULAR CURVE TO THE RIGHT A DISTANCE OF 158.13 FEET MORE OR LESS TO A POINTS SAID POINT BEING 55 FEET WEST OF AND AT 1 RIGHT ANGLES TO THE CENTERLINE OF THE CONCRETE LINED AIRPORT DRAINAGE DITCH; THENCE IN A SOUTHERLY DIRECTION WITH A LINE THAT IS 55 FEET .6 WEST OF AND PARALLEL TO THE CENTERLINE OF SAID CONCRETE LINED AIRPORT DRAINAGE DITCH A DISTANCE OF 3750 FEET MORE OR LESS TO A POINT; - 1 THENCE IN A SOUTHERLY AND SOUTHWESTERLY DIRECTION WITH THE ARC OF A CIRCULAR CURVE TO THE RIGHT HAVING A RADIUS OF 1460 *" FEET AND A CENTRAL ANGLE OF 89 °01i' 30° A DISTANCE OF 715.19 FEET MORE OR LESS TO THE POINT OF TANGENT TO SAID CURVE; THENCE IN A WESTERLY DIRECTION WITH THE NORTH BOUNDARY LINE OF HORNE ROAD A DISTANCE OF 3382 FEET MORE OR LESS TO THE POINT OF CURVE TO THE RIGHT; THENCE IN A WESTERLY AND NORTHWESTERLY DIRECTION WITH THE ARC OF SAID CURVE TO THE RIGHT HAVING A RADIUS OF 4148.45 FEET AND A CENTRAL ANGLE OF 54° 29' 30^ A DISTANCE OF 426.04 FEET MORE OR LESS TO THE POINT OF TANGENT TO SAID CURVE; THENCE N 350 314' 30" W A DISTANCE OF 106.77 FEET MORE OR LESS TO THE POINT OF CURVE TO THE RIGHT; ' THENCE IN A NORTHERLY AND NORTHEASTERLY DIRECTION WITH THE ARC OF SAID CURVE TO THE RIGHT HAVING A RADIUS OF 20 FEET AND A CENTRAL ANGLE OF 88° 51' 30° A DISTANCE OF 31.02 FEET _ • MORE OR LESS TO THE PLACE OF BEGINNING; SAID DESCRIPTION I BEING SUBJECT TO A SURVEY OF SAID TRACT OR PARCEL OF LAND AND CORRECTION OR AMENDMENT IN ACCORDANCE THEREWITH. r LEASE THE STATE OF TEXAS COUNTY OF NUECES c� THIS LEASE IS EXECUTED IN DUPLICATE THIS DAY OF , 196 AND BETWEEN THE CITY OF CORPUS CHRISTI, TEXAS, ACTING HEREIN BY AND THROUGH ITS CITY MANAGER, HEREUNTO DULY AUTHORIZED, HEREINAFTER CALLED "CITY", AND HARRINGTON & CORTELYOU, A PARTNERSHIP CONSISTING OF FRANK M. CORTELYOU, E. M. NEWMAN AND F. M. CORTELYOU, JR., HEREINAFTER CALLED "LESSEE ", W I T N E S S E T H: x: THAT FOR AND IN CONSIDERATION OF THE RENT TO BE PAID BY LESSEE AND THE CONSTRUCTION OF GOLF COURSE AND OTHER IMPROVEMENTS AND SURRENDER OF THE SAME AT THE TERMINATION OF THE LEASE AND THE OTHER CONSIDERATIONS GIVEN BY THE LESSEE - HEREIN, CITY HEREBY LEASES TO THE LESSEE, AND LESSEE HIRES FROM THE CITY, THE FOLLOWING PREMISES, TO -WIT: BEGINNING AT THE SOUTHEAST CORNER OF LOT 1, GUGENHEIM AND COHN FARM LOTS OUT OF SECTION 5, RANGE 9, KINNEY LANDS AS SHOWN BY MAP OR PLAT OF RECORD IN VOL, A, PAGE 53, MAP RECORDS OF NUECES COUNTY, TEXAS; THENCE S. 89° 56'.50" W. WITH THE SOUTH BOUNDARY LINE OF SAID LOT 1, A DISTANCE OF 673.44 FEET TO A POINT, SAID POINT BEING THE BEGINNING POINT OF THE TRACT HEREIN DESCRIBED; THENCE S. 89° 569 501 W. A DISTANCE OF 2424.51 FEET TO A. POINT FOR A CORNER OF THIS TRACT; THENCE N. 57' 01, 45" W. A DISTANCE OF 23.0$ FEET TO A POINT FOR A CORNER OF THIS TRACT; THENCE IN A WESTERLY DIRECTION ALONG THE ARC OF A CIRCULAR CURVE TO THE LEFT HAVING A RADIUS OF 417.33 FEET AND A CEN- TRAL ANGLE OF 33° 0'19 25" A DISTANCE OF 240.54 FEET TO A POINT FOR A CORNER OF THIS TRACT; " THENCE S. 89' 561 50° W. A DISTANCE OF 494.61 FEET TO A POINT FOR A CORNER OF THIS TRACT; 1}� THENCE IN A NORTHWESTERLY DIRECTION ALONG THE ARC OF A CIRCULAR CURVE TO THE RIGHT HAVING A RADIUS OF 448.43 FEET AND A CENTRAL ANGLE OF 54° 29' 30., A DISTANCE OF 426.48 FEET TO A POINT FOR A CORNER OF THIS TRACT; THENCE N. 35° 34' 30" W. A DISTANCE OF 111.34 FEET TO A POINT FOR A CORNER OF THIS TRACT; THENCE IN A NORTHEASTERLY DIRECTION ALONG THE ARC OF A CIRCULAR CURVE TO THE RIGHT HAVING A RADIUS OF 20 FEET AND .. A CENTRAL ANGLE OF 87° 45' 58A DISTANCE OF 30.64 FEET TO A POINT FOR A CORNER OF THIS TRACT; THENCE IN A NORTHEASTERLY DIRECTION ALONG THE ARC OF A CIR- CULAR CURVE TO THE LEFT HAVING A RADIUS OF 5788.65 FEET AND A CENTRAL ANGLE OF 8° 53' 42° A DISTANCE OF 898 83 FEET TO A POINT„ SAID CURVE BEING ALONG THE SOUTHEAST RIGHT OF WAY LINE OF OLD BROWNSVILLE ROAD; THENCE N. 43° C6' 20" E. WITH THE SOUTHEAST RIGHT OF WAY LINE OF OLD BROWNSVILL.E ROAD A DISTANCE OF 4096.99 FEET TO A POINT FOR A CORNER OF THIS TRACT; THENCE IN AN EASTERLY DIRECTION ALONG THE ARC OF A CIRCULAR CURVE TO THE RIGHT HAVING A RADIUS OF 418.86 FEET AND A CENTRAL ANGLE OF 23" 35' 30° A DISTANCE OF 197.17 FEET TO A POINT; THENCE N. 66° 41' 50° E. A DISTANCE OF 344.36 FEET TO A POINT FOR ,A CORNER OF THIS TRACT; THENCE IN A SOUTHEASTERLY DIRECTION WITH THE ARC OF A CIRCULAR CURVE TO THE RIGHT HAVING A RADIUS OF 80 FEET AND A CENTRAL ANGLE OF 113' 15' A DISTANCE OF 158.13 FEET TO A POINT FOR A CORNER OF THIS TRACT; . THENCE S. 00 03' 10" E. A DISTANCE OF 3696.65 FEET TO A POINT FOR A CORNER OF THIS TRACT; THENCE IN A SOUTHWESTERLY DIRECTION WITH THE ARC OF A CIRCULAR CURVE TO THE RIGHT HAVING A RADIUS OF 460 FEET AND A CENTRAL ANGLE OF 90° A DISTANCE OF 722.57 FEET TO THE PLACE OF BEGINNING, CONTAINING 222.37 ACRES, MORE OR LESS, ALL AS SHOWN 8Y THE MAP OR PLAT ON FILE IN THE OFFICE OF THE CITY SECRETARY. -'2- 19 • TO HAVE AND TO HOLD THE SAID PREMISES UNTO LESSEE, SUBJECT TO THE CONDITIONS AND COVENANTS HEREIN CONTAINED, FOR THE TERM OF YEARS HERE- INAFTER SPECIFIED. THE PARTIES HERETO COVENANT AND AGREE AS FOLLOWS: ARTICLE I. TERM OF LEASE THIS LEASE SHALL BE FOR A TERM OF THIRTY 00) YEARS, BEGINNING THE DAY OF 9 19639 AND TERMINATING AT MIDNIGHT ON THE DAY OF , 7993. UPON THE COMPLETION OF THE CONSTRUCTION OF EACH OF THE IMPROVEMENTS LISTED AND DESCRIBED AS MANDATORY .ITEMS UNDER ARTICLE II,, PARAGRAPH A, EACH SUCH IMPROVEMENT WHICH IS OF A FIXED NATURE, EXCEPT BUILDINGS, SHALL BE AND BECOME THE PROPERTY OF CITY. • UPON THE COMPLETION OF THE CONSTRUCTION OF EACH OF THE IMPROVEMENTS LISTED AND DESCRIBED AS OPTIONAL ITEMS UNDER ARTICLE 11, PARAGRAPH B, EACH SUCH IMPROVEMENT WHICH IS OF A FIXED NATURE, EXCEPT BUILDINGS, SHALL BE AND BECOME THE PROPERTY OF CITY. UPON THE TERMINATION OF THIS LEASE, ALL BUILDINGS RETAINED OR CONSTRUCTED BY LESSEE ON THE LEASED PREMISES UNDER THE PROVISIONS HEREOF, SHALL BE AND BECOME THE PROPERTY OF CITY. t ARTICLE 11. PURPOSE AND IMPROVEMENTS THE PURPOSE OF THIS LEASE IS TO PROVIDE FOR THE CONSTRUCTION AND OPERATION OF A PUBLIC GOLF COURSE AND APPURTENANCES, WHICH LESSEE AGREES TO DO, AND THE LAND AND PREMISES COVERED HEREBY SHALL BE USED ONLY FOR SUCH PURPOSES UNLESS CONSENT TO ANY OTHER USE IS OBTAINED FROM THE CITY COUNCIL OF CITY BY ORDINANCE. 4A A MINIMUM EXPENDITURE OF $200,000.00 WILL BE MADE By LESSEE IN f - CONSTRUCTING THE GOLF COURSE AND OTHER IMPROVEMENTS LISTED AND DESCRIBED AS MANDATORY ITEMS UNDER PARAGRAPH A OF THIS ARTICLE 11. CONSTRUCTION OF THE MANDATORY ITEMS SHALL BE STARTED IN ACCORDANCE WITH THE TERMS OF THIS r r s 101'r AGREEMENT NOT LATER THAN SIXTY (60) DAYS AFTER THE APPROVAL OF FINAL PLANS AND SPECIFICATIONS AND SHALL PROCEED WITH DUE DILIGENCE THEREAFTER UNTIL COMPLETED, BUT THE SAID MANDATORY ITEMS SHALL IN ANY EVENT BE COMPLETED WITHIN TWO (2) YEARS AND SIXTY (60) DAYS FROM THE DATE OF APPROVAL OF FINAL PLANS AND SPECIFICATIONS. A. MANDATORY ITEMS. IN THE INITIAL CONSTRUCTION OF IMPROVEMENTS LESSEE COVENANTS THAT IT WILL CONSTRUCT THE FOLLOWING: 1. CHAMPIONSHIP 18-HOLE GOLF COURSE. A CHAMPIONSHIP 18-HOLE GOLF COURSE WILL BE CONSTRUCTED ON THE LEASED PREMISESp THE DESIGN AND SUB- SEQUENT CONSTRUCTION OF ALL FEATURES OF WHICH SHALL BE EQUAL TO OTHER SIMILAR COURSES IN THE TEXAS AREA. THE DESIGN SHALL INCORPORATE A TOTAL MINIMUM YARDAGE OF 6800 YARDS; THE PAR SHALL BE 72; THE GREENS SHALL EACH CONTAIN A MINIMUM AREA OF 6000 SQUARE FEET; THE LAYOUT AND CONSTRUCTION SHALL CONFORM WITH BEST PRACTICES AND WITH APPLICABLE U. S. GOLF ASSOCIATION RECOM- MENDATIONS. IN THE CONSTRUCTION OF THE GOLF COURSE PROVISON WILL BE MADE FOR OPERATION OF ELECTRIC OR GASOLINE GOLF CARTS. PLANNING SHALL INCLUDE SURFACED CART ROUTES TO PROTECT HEAVILY TRAVELED LOCATIONS AND TO DIVERT CARTS FROM INVADING THE GREENS AREA. 2. PRACTICE DRIVING RANGE. A LIGHTED PRACTICE TEE AND FAIRWAY WITH PROVISION FOR THIRTY (30) TEE SPACES WILL BE CONSTRUCTED ON THE LEASED PREMISES. DESIGN OF THIS FACILITY SHALL INCLUDE PROVISION FOR INCREASING THE CAPACITY TO NINETY (90) TEE POSITIONS IF SPACE REQUIREMENTS WILL PERMIT. 3. BUILDINGS. A CLUB HOUSE BUILDING, WHICH WILL INCLUDE RESTROOMS AND FACILITIES FOR A PRO -SHOP AND FOR SALE OF FOOD AND REFRESH- MENTS WILL BE CONSTRUCTED ON THE LEASED PREMISES. A BUILDING FOR MAIN- TENANCE EQUIPMENT AND FOR STORAGE SHALL ALSO BE PROVIDED OR EXISTING BUILDINGS CONVERTED TO SUCH USE. A SURFACED ENTRANCE SHALL BE PROVIDED TO THE CLUB HOUSE AREA AND SURFACED PARKING AREA TO ACCOMODATE 200 CARS SHALL BE PROVIDED AS CLOSE TO THE CLUB HOUSE AS POSSIBLE. PROVISION FOR -4- OVERFLOW PARKING SHALL BE MADE AS CONVENIENT AS POSSIBLE. EXISTING BUILDINGS ON THE LEASED PREMISES NOT REQUIRED FOR THE GOLF COURSE USE SHALL REMAIN THE PROPERTY OF CITY AND SHALL BE REMOVED FROM THE LEASED PREMISES BY CITY. 4. WATER SYSTEM. A PERMANENT WATERING SYSTEM WILL BE ... PROVIDED FOR ALL TEES, FAIRWAYS AND GREENS. THE SYTEM SHALL BE DESIGNED EVENTUALLY TO FUNCTION AS AN AUTOMATIC SYSTEM WITH ALL POSSIBLE ELEMENTS OF THAT TYPE OF DESIGN CONSTRUCTED IN THE INITIAL CONSTRUCTION. INITIAL OPERATION AS AN AUTOMATIC SYSTEM IS NOT REQUIREDp BUT THE DESIGN SHALL BE SUCH THAT CONVERSION CAN BE MADE TO AN AUTOMATIC SYSTEM. IT IS ANTICI- PATED THAT EFFLUENT FROM THE WESTSIDE SEWAGE TREATMENT PLANT LOCATED AT OR NEAR THE INTERSECTION OF SARATOGA BOULEVARD AND GREENWOOD DRIVE MAY BE USED fi ON THE GOLF COURSE ANDS FOR THIS PURPOSE, CITY SHALL MAKE AVAIL - ABLER WITHOUT COST TO THE LESSEE, EFFLUENT FROM THE SAID PLANT IN THE MAXIMUM AMOUNT OF ONE MILLION GALLONS PER DAY FOR TRANSPORT TO AND USE ON THE GOLF COURSE. A RIGHT -OF -WAY CONNECTING GOLF COURSE AND SEWAGE PLANT FOR CONSTRUCTIONS MAINTENANCE, OPERATION AND REPAIR OF A PIPE LINE AND A SUFFICIENT AREA AT THE SEWAGE PLANT FOR CONSTRUCTIONS OPERATION, MAINTENANCE AND REPAIR OF PUMPING FACILITIES SHALL BE MADE AVAILABLE BY CITY ALONG PUBLIC ROADS AND/OR PIPE LINE RIGHT -OF -WAY EASEMENTS OWNED BY CITY, WITHOUT COST TO LESSEE. LESSEE SHALL HAVE THE RIGHT TO CONSTRUCTj OPERATE, MAINTAIN AND REPAIRS AT ITS OWN EXPENSE, A PIPE LINE FROM SUCH WESTSIDE SEWAGE TREATMENT PLANT ALONG SUCH RIGHT-OF-WAY TO THE GOLF COURSE, BUT IS NOT OBLIGATED TO DO SO IF LESSEE CAN SECURE A SUFFICIENT QUANTITY OF WATER FOR USE ON THE GOLF COURSE BY A MORE ECONOMICAL MEANS. IF A PIPE LINE IS CONSTRUCTED FROM THE WESTSIDE SEWAGE TREATMENT PLANT v TO THE LEASED PREMISES AND CITY DESIRES TO USE SAID PIPE LINE FOR WATERING OF OTHER CITY -OWNED LANDS CITY SHALL HAVE THE RIGHT, TO BE EXERCISED BY NOTICE IN WRITING TO LESSEE PRIOR TO APPROVAL OF FINAL PLANS AND SPECIFICATIONS OR WITHIN SIXTY (GO) DAYS FROM THE BEGINNING OF THE TERM OF THIS LEASE, WHICHEVER DATE FIRST OCCURS TO PAY THE DIFFERENCE BETWEEN THE COST OF THE PIPE LINE AND PUMPING SYSTEM PROPOSED BY LESSEE FOR THE -5- Lm- • WATERING OF LEASED PREMISES AND THE COST OF THE PIPE LINE AND PUMPING SYSTEM OF SUCH SIZE AS CITY DESIRES AND TO REQUIRE THAT SAID PIPE LINE AND PUMPING SYSTEM BE BUILT TO SUCH SIZE AS CITY DESIRES. IN LIEU THEREOF CITY AND LESSEE MAYS BY MUTUAL AGREEMENT, PROVIDE FOR JOINT USE OF THE PIPE LINE AND PUMPING SYSTEM BUILT HEREUNDER BY LESSEE. SUCH PIPE LINE AND PUMPING FACILITIES SHALL BE CONSIDERED AN IMPROVEMENT OF A FIXED NATURE AND SHALL BECOME AND REMAIN THE PROPERTY OF THE CITY AT THE COMPLETION OF CONSTRUCTION OF THE SAME OR AT THE COMPLETION OF THE CONSTRUCTION OF ALL IMPROVEMENTS LISTED AND DESCRIBED AS MANDATORY ITEMS PROVIDED FOR IN THIS PARAGRAPH A OF ARTICLE II, WHICHEVER IS THE LATER. IF A PIPE LINE AND PUMPING SYSTEM LARGER THAN THAT PROPOSED BY LESSEE IS CONSTRUCTED UPON THE DEMAND OF CITY, OR IF CITY AND LESSEE ENTER INTO A MUTUAL AGREEMENT FOR JOINT USE OF THE PIPE LINE BUILT HEREUNDER BY LESSEES LESSEE. SHALL MAINTAIN AND OPERATE THE SAME BUT CITY WILL SHARE THE COST OF MAINTENANCE AND OPERATION PRO RATA TO THE AMOUNT OF WATER USED BY CITY AND LESSEE, RESPECTIVELY. IF, DURING THE TERM OF THIS LEASE, CITY SHOULD REQUIRE THAT SAID PIPE LINE] OR ANY ONE OR MORE PIPES THEREOF, BE SHIFTED OR ADJUSTED (INCLUDING THE RAISING OR LOWERING THEREOF), BECAUSE OF THE CONSTRUCTION OF ANY SEWERS, STREETS OR OTHER PUBLIC WORKS LESSEE SHALL PROMPTLY SHIFT OR ADJUST SUCH PIPE LINES AT ITS OWN EXPENSE, AS AND WHEN REQUIRED BY CITY. B. OPTIONAL ITEMS. IN ADDITION TO THE FOREGOING IMPROVEMENTS WHICH LESSEE COVENANTS AND AGREES TO CONSTRUCT AND OPERATE, LESSEE SHALL HAVE THE OPTION TO CONSTRUCT AND OPERATE THE FOLLOWING. 1. AN ADDITIONAL MODIFIED NINE -HOLE SHORT COURSE TO HAVE PROVISION FOR OPERATION OF ELECTRIC OR GASOLINE CARTS. 2. A PRACTICE PUTTING GREEN. PRELIMINARY PLANS SHALL INCLUDE PROVISIONS FOR THE PRACTICE PUTTING GREEN] THE MODIFIED NINE -HOLE SHORT COURSES AND SPACE SHALL BE RESERVED TO ALLOW CONSTRUCTION OF THE SAME UNLESS OTHERWISE AGREED BY CITY AND LESSEE. IF LESSEE ELECTS TO CONSTRUCT ANY OF SUCH ADDITIONAL -6- FACILITIES DURING THE TERM OF THIS LEASE AS HEREINAFTER PROVIDED, FINAL PLANS, OR SUBSEQUENT PLANS PREPARED AS FINAL PLANS, FOR CONSTRUCTION SHALL BE SUB- MITTED TO AND APPROVED BY CITY IN THE SAME MANNER AS FINAL PLANS ARE SUBMITTED AND APPROVED FOR INITIAL CONSTRUCTION OF THE 18-HOLE GOLF COURSE AND OTHER INITIAL IMPROVEMENTS. ANY CHANGE IN THE NEED FOR CERTAIN FACILITIES OR RE- QUIREMENTS FOR A DIFFERENT TYPE OF INSTALLATION DEVELOPED AS THE RESULT OF OPERATING EXPERIENCE AND NOT SPECIFICALLY HEREIN DESCRIBED MAY BE CONSIDERED AND AGREED UPON BY LESSEE AND CITY. THE RETIREMENT OF AN EXISTING INSTALLATION OR CONSTRUCTION OF A NEW ONE SHALL BE SUBJECT TO REQUIREMENTS FOR PLANS AND APPROVAL PRIOR TO SUCH ACTION. IF LESSEE DOES NOT CONSTRUCT ANY ONE OR MORE OF THE OPTIONAL ITEMS HEREINABOVE MENTIONED ON OR BEFORE THE 1ST DAY OF JUNE, 19757 THIS LEASE SHALL TERMINATE ON THAT DATE AS TO THAT PORTION OF THE LEASED PREMISES RESERVED ON THE APPROVED PRELIMINARY PLANS FOR THE OPTIONAL ITEM OR ITEMS WHICH ARE NOT THEN CONSTRUCTED. C. THE GOLF COURSE AND THE OTHER IMPROVEMENTS PROVIDED FOR HEREIN SHALL EQUALLY BE AVAILABLE TO ALL MEMBERS OF THE PUBLIC WITHOUT DISCRIMINA- TION. rt ARTICLE III PLANS A. PRELIMINARY PLANS TO ILLUSTRATE ANDEEVELOP THE GENERAL FEATURES OF THE IMPROVEMENTS TO BE CONSTRUCTED BY LESSEE HAVE HERETOFORE BEEN PROVIDED AND AGREED UPON BY CITY AND LESSEE. SUCH PRELIMINARY PLANS INDICATE THE LOCATION OF EACH OF THE FEATURES PROPOSED, BOTH PRESENT AND FUTURES AND THE GENERAL EXTENT OF EACH AND THE IMPROVEMENTS TO BE PLACED ON THE LEASED PREMISES SHALL CONFORM TO THE PRELIMINARY PLANS UNLESS CHANGE IS AGREED UPON BY CITY AND LESSEE. -7- B. FINAL PLANS AND SPECIFICATIONS FOR CONSTRUCTING THE FACILI- TIES SHALL BE PREPARED WITH REASONABLE DILIGENCE AFTER THE BEGINNING OF THE TERM OF THIS LEASE. THE FINAL PLANS SHALL BE IN SUFFICIENT DETAIL TO PERMIT CONSTRUCTION IN ACCORDANCE WITH THE APPROVED GENERAL FEATURES AND THE SPECIFICATIONS SHALL BE IN SUFFICIENT DETAIL TO PROVIDE FOR ADEQUATE CONTROL OF MATERIALS AND PROCESSES WHICH CONFORM WITH GOOD PRACTICE AND MEET CITY CODE REQUIREMENTS WHERE APPLICABLE. IF FINAL PLANS COVERING THE LAYOUT OF THE COURSE ARE SUBSTANTIALLY THE SAME AS PRELIMINARY PLANS PREVIOUSLY APPROVED THE FINAL PLANS WILL BE APPROVED. APPROVAL OF FINAL PLANS WILL NOT BE UNREASONABLY WITHHELD, AND IF APPROVAL CANNOT BE REACHED LESSEE SHALL HAVE THE OPTION TO CANCEL THIS LEASE. C. WHEREVER IN THIS LEASE. PROVISION IS MADE FOR "APPROVAL" OR "REVIEW AND APPROVAL" SUCH "APPROVAL" OR "REVIEW AND APPROVAL" SHALL BE MADE BY THE CITY MANAGER WHO IS HEREBY DESIGNATED AS THE REPRESENTATIVE OF CITY TO WHOM ALL SUBMISSIONS REQUIRING PRIOR APPROVAL SHALL BE MADE BEFORE CONSTRUCTION IS STARTED. PLANS AND SPECIFICATIONS SHALL BE STAMPED OR NOTED AS "APPROVED" AND SHALL BECOME A PART OF THIS CONTRACT AS A RECORD OF THE CONSTRUCTED FACILITY. DUPLICATE COPIES SHALL BE SUBMITTED FOR APPROVAL SIGNATURE IN ORDER THAT CITY AND LESSEE MAY EACH HAVE THE RECORD. ARTICLE IV. CONSTRUCTION ALL CONSTRUCTION PERFORMED BY LESSEE UNDER THIS LEASE SHALL CONFORM TO THE PROVISIONS OF THE APPROVED PLANS AND SPECIFICATIONS AND NO CONSTRUCTION SHALL BE UNDERTAKEN UNTIL AGREEMENT AND APPROVAL, AS PREVIOUSLY OUTLINED, 15 REACHED. INSPECTION OF THE CONSTRUCTION PROCESSES MAY BE MADE BY THE DIRECTOR OF PUBLIC WORKS OF CITY OR HIS REPRESENTATIVES. IN CASE OF DISAGREEMENT WITH REGARD TO COMPLIANCE WITH APPROVED PLANS, CITY'S AGENT SHALL ADVISE THE LESSEE IN WRITING OF A DEFICIENCY CLAIMED. IF THE CLAIMED DEFICIENCY IS NOT CORRECTED BY LESSEE WITHIN THRITY (30) DAYS, OR WITHIN AN APPROPRIATE PERIOD AS MAY BE OTHERWISE AGREED THE 51 • MATTER SHALL BE SUBMITTED TO A COMPETENT ARBITRATOR OR ARBITRATORS AGREED UPON BY THE CITY AND LESSEE. UPON A DECISION BY ARBITRATION REQUIRING COM- PLIANCE BY THE LESSEE, THE DEFICIENCY SHALL BE REMEDIED WITHIN A THIRTY (30) DAY PERIOD. LESSEE SHALL FURNISH TO CITY A SET OF "AS CONSTRUCTED" PLANS UPON THE COMPLETION OF CONSTRUCTION, BUT OWNERSHIP OF PLANS AND SPECIFICA- TIONS SHALL REMAIN IN LESSEE UNTIL THE TERMINATION OF THE LEASE. IT IS CONTEMPLATED THAT, IN THE CONSTRUCTION OF IMPROVEMENTS HEREUNDER, LESSEE SHALL NEED TO REMOVE ALL OR PORTIONS OF THE RUNWAYS, PARK- ING RAMPS AND OTHER OLD AIRPORT FACILITIES LOCATED ON THE LEASED PREMISES, AND LESSEE IS AUTHORIZED TO REMOVED DISPOSE OFD OR PUT TO ITS USE ALL OF THE SAME, EXCEPT BUILDINGS, THE PROVISION FOR USE AND DISPOSITION OF WHICH IS OTHERWISE PROVIDED FOR HEREIN. ARTICLE V. CONSIDERATION AS CONSIDERATION FOR THE USE OF THE LEASED PREMISES ON WHICH THE GOLF COURSE FACILITIES WILL BE CONSTRUCTED AND OPERATED DURING THE TERM OF THIS LEASES IN ADDITION TO THE SURRENDER TO THE CITY OF ALL FIXED IMPROVEMENTS AS HEREINABOVE PROVIDED, LESSEE SHALL PAY TO CITY THE FOLLOWING SCHEDULE OF PAYMENTS; $1.00 FOR EACH OF THE FIRST FIVE YEARS OF THE TERM. 3% OF GREENS FEES FOR THE SECOND FIVE YEAR PERIOD OF THE TERM. 5% OF GREENS FEES FOR THE THIRD FIVE YEAR PERIOD OF THE TERM. 71v OF GREENS FEES FOR THE FOURTH FIVE YEAR PERIOD OF THE TERM. 10% OF GREENS FEES FOR THE LAST TEN YEARS OF THE TERM. THE PERCENTAGE PAYMENTS TO BE MADE BY LESSEE SHALL BE BASED UPON THE GROSS INCOME FROM GREENS FEES, OR OTHER CONSIDERATIONS, IF ANY, RECEIVED BY LESSEE IN LIEU OF GREENS FEES, FROM THE CHAMPIONSHIP 18 -HOLE COURSE AND FROM THE MODIFIED 9 -HOLE SHORT COURSE, IF CONSTRUCTED. OTHER SOURCES OF REVENUE SHALL NOT BE INCLUDED IN OR SUBJECT TO SUCH PERCENTAGE PAYMENTS. 0 • PERCENTAGE PAYMENTS DUE TO CITY HEREUNDER AND THE ACCOMPANYING REPORTS SHALL BE MADE ON OR BEFORE JANUARY 15� APRIL 15, JULY 15, AND OCTOBER 15 IN EACH APPLICABLE YEAR DURING THE TERM OF THIS LEASE AND SHALL COVER THE PERIOD OF OPERATION OF THE THREE (3) CALENDAR MONTHS NEXT PRECEDING THE `MONTH IN WHICH THE PAYMENT AND REPORT IS MADE. AT THE EXPIRATION OF THE TERM SIMILAR PAYMENT AND REPORT SHALL BE MADE TO COVER THE PERIOD BETWEEN THE LAST SUCH REGULAR REPORT AND END OF THE TERM. LESSEE SHALL KEEP ACCURATE RECORDS AND ACCOUNTS OF ALL OPERA- TIONS AND ALL INCOME AND EXPENSES, INCLUDING CAPITAL EXPENDITURES IN ACCORDANCE WITH THE FORM PRESCRIBED BY CITY. CITY SHALL HAVE THE RIGHT TO EXAMINE AND AUDIT SUCH ACCOUNTS AND RECORDS AT ANY TIME DURING REGULAR BUSINESS HOURS. TO COMPLY WITH THE PROVISIONS OF ARTICLE V111, SECTION 6 OF THE CITY CHARTER, LESSEE'S ACCOUNTS SHALL BE KEPT IN ACCORD WITH A FORM OF ACCOUNTING RECORDS PRESCRIBED BY CITY AT TIME OF EXECUTION AND DELIVERY OF THIS LEASE. ANNUAL AUDITS SHALL BE MADE WHICH SHALL BE IN SUCH FORM AND CONTAIN SUCH INFORMATION AS IS INCLUDED IN THE FORM PRESCRIBED BY THE CITY COUNCIL OF CITY AT TIME OF EXECUTION AND DELIVERY OF THIS LEASE. IT IS CONTEMPLATED THAT LESSEE SHALL BE SUBJECT TO AD VALOREM TAXATION UPON THE .BUILDINGS WHICH REMAIN ITS PROPERTY DURING THE TERM OF THIS LEASE AND UPON ALL PERSONAL PROPERTY OWNED BY LESSEE AND USED ON OR IN CONNECTION WITH THE LEASED PREMISES. LESSEE COVENANTS TO PAY SUCH AD VALOREM TAXES AS MAY BE LAWFULLY ASSESSED AGAINST SUCH BUILDINGS AND PERSONAL PROPERTY. ARTICLE VI. POSSESSION AND MAINTENANCE LESSEE SHALL HAVE SOLE POSSESSION OFD AND RESPONSIBILITY FOR MAINTENANCE OFD THE LEASED PREMISES, INCLUDING ALL IMPROVEMENTS CONSTRUCTED 6)m • • THEREON, AND THE PIPE LINE AND PUMPING SYSTEM DESCRIBED IN ARTICLE II, PARAGRAPH A 6. CITY SHALL HAVE THE RIGHT TO INSPECT THE AREA AND TO IMPOSE REASONABLE REGULATIONS TO INSURE PROPER CARE, MAINTENANCE, AND UPKEEP OF THE LEASED PROPERTY. THE DEGREE OF MAINTENANCE SHALL BE IN KEEPING WITH OTHER PUBLIC COURSES IN THE GENERAL AREA. CITY THROUGH ITS DIRECTOR OF PARK AND RECREATIONS SHALL HAVE THE RIGHT TO REQUIRE THAT THE LEASED PREMISES AND IMPROVEMENTS THEREON MEET GENERAL STANDARDS FOR OTHER GOLF COURSES OPEN TO PUBLIC USE IN THE AREA. ARTICLE VII. OPERATION A. IN ITS OPERATIONS ON THE LEASED PREMISES LESSEE SHALL OBSERVE ALL FEDERAL) STATE AND CITY LAWS APPLICABLE TO SAFETY AND THE PROTECTION OF HEALTH, WELFARE AND MORALS OF THE PUBLIC. B. LESSEE SHALL MEET ALL REQUIREMENTS OF THE CITY AND STATE HEALTH DEPARTMENTS COVERING THE HANDLING AND DISPENSING OF FOOD AND BEVERAGES. - ADEQUATE TOILET FACILITIES IN ACCORDANCE WITH SPECIFICATIONS SHALL BE PROVIDED AT THE CLUB HOUSE. REFUSE AND GARBAGE SHALL BE HANDLED AS PROVIDED BY CITY ORDINANCES. C. LESSEE AGREES TO PAY ALL PUBLIC UTILITY BILLS FOR ELECTRI- CITY; GAS AND WATER CONSUMED WITHIN THE AREA COVERED BY THIS LEASE AND TO PROCURE AT ITS EXPENSE. ALL .METERS AND PERMITS NECESSARY FOR MAKING CONNECTIONS AND CONTINUING THE SERVICE. ARTICLE VIII. INSURANCE DURING THE TERM OF THIS LEASE, LESSEE SHALL PROCURE AND KEEP IN FORCE, OR SHALL WHERE APPROPRIATE REQUIRE LESSEE'S CONTRACTORS AND SUB- CONTRACTORS TO PROCURE AND KEEP IN FORCES THE FOLLOWING INSURANCE: A. WORKMEN'S COMPENSATION INSURANCE - PROTECTING ALL EMPLOYEES OF LESSEE AND EMPLOYEES OF ITS CONTRACTORS OR SUB - CONTRACTORS DURING THE PERIOD OF CONSTRUCTION. - THEREAFTER LESSEE SHALL PROVIDE WORKMEN'S COM- PENSATION INSURANCE TO COVER ITS EMPLOYEES USED IN OPERATION OF THE GOLF COURSE DURING THE TERM OF THIS LEASE. B. LIABILITY AND PROPERTY DAMAGE INSURANCE - WITH LIMITS, AS TO PERSONAL INJURY AND DEATHS OF $100,000.00 AS TO EACH PERSON AND $300000.00 AS TO EACH ACCIDENT, AND AS TO PROPERTY DAMAGE, OF $10,000.00. SUCH INSURANCE SHALL BE ON TEXAS STANDARD FORM AND SHALL NAME BOTH LESSEE AND CITY AS ASSUREDS. SUCH INSURANCE SHALL BE MADE EFFECTIVE PRIOR TO THE BEGINNING OF CONSTRUCTION AND SHALL COVER CONSTRUCTION AND, THEREAFTER, OPERATION OF THE IMPROVEMENTS ON THE LEASED PREMISES. C. FIRE AND EXTENDED COVERAGE INSURANCE - ON TEXAS STANDARD FORM COVERING ALL BUILDINGS CONSTRUCTED OR USED BY LESSEE DURING THE TERM OF THIS LEASE IN AN AMOUNT EQUAL TO AT LEAST EIGHTY PER CENT (80 %) OF THE FULL INSURABLE VALUE OF SUCH BUILDINGS ABOVE FOUNDATIONS. SUCH INSURANCE POLICIES SHALL BE ISSUED 6N THE JOINT NAMES OF CITY AND LESSEE AND SHALL BE PAYABLE TO CITY, LESSEE AND TO ANY MORTGAGEES IF ANY, AS THEIR RESPECTIVE INTERESTS MAY APPEAR. D. DUPLICATE ORIGINALS OR CERTIFICATES OF ALL INSURANCE POLI- CIES REQUIRED HEREUNDER SHALL BE DELIVERED TO CITY AND.SHALL BE DELIVERED EARLY ENOUGH TO ALLOW TIME FOR THE CHECKING AND APPROVAL OF SAME BY THE CITY ATTORNEY OF CITY. THE ENTIRE AMOUNT COLLECTED FOR LOSSES UNDER ANY FIRE AND EXTENDED COVERAGE POLICIES SHALL BE HELD UNDER JOINT CONTROL OF CITY, LESSEE AND ANY MORTGAGEE, AND SHALL BE MADE AVAILABLE TO REPAIR, RESTORE, OR REBUILD THE DAMAGED IMPROVEMENTS. ANY EXCESS PORTION OF THE INSURANCE FUND REMAINING AFTER THE COST OF REPAIRS, REBUILDING OR RESTORA- TION IS PAID, SHALL BE PAID TO CITY. IN THE EVENT THE INSURANCE FUND IS INSUFFICIENT TO COVER THE COST OF REPAIRS, REBUILDING OR RESTORATION, THE EXCESS COST SHALL BE BORNE BY LESSEE. -12- ARTICLE IX. PERFORMANCE AND PAYMENT BOND UPON APPROVAL OF FINAL PLANS AND SPECIFICATIONS FOR THE INITIAL CONSTRUCTION, LESSEE SHALL FURNISH TO CITY A PERFORMANCE AND PAYMENT BOND (TO BE EITHER A DEPOSIT OF CASH OR NEGOTIABLE SECURITIES OR A BOND WITH A CORPORATE SURETY LICENSED TO DO BUSINESS IN THE STATE OF TEXAS) IN THE AMOUNT OF $100,000.00, CONDITIONED THAT LESSEE COMPLETE THE INITIAL CONSTRUCTION IN ACCORDANCE WITH THE FINAL APPROVED PLANS AND SPECIFICATIONS AND THAT LESSEE, AND ITS CONTRACTORS AND SUB - CONTRACTORS, PAY FOR ALL LABOR, MATERIALS, TOOLS AND EQUIPMENT FURNISHED FOR THE WORK. THE SAID BOND SHALL BE PAYABLE TO THE CITY OF CORPUS CHRISTI AND SHALL BE APPROVED BY CITY AS TO FORM. ARTICLE X. ASSIGNMENT OF LEASE EXCEPT AS PROVIDED IN THIS PARAGRAPHS THIS LEASE SHALL NOT BE ASSIGNED, IN WHOLE OR IN PARTS UNLESS AND UNTIL CITY AUTHORIZES SUCH ASSIGN- MENT BY ORDINANCE. IT IS UNDERSTOOD AND AGREED, HOWEVER THAT IN THE EVENT A CORPORATION IS FORMED BY THE MEMBERS OF THE PARTNERSHIP WHICH IS THE LESSEE HEREIN, WITH SUCH MEMBERS OF THE PARTNERSHIP OWNING THE CONTROLLING STOCK AND SERVING AS OFFICERS OF THE CORPORATION, AN ASSIGNMENT OF THIS LEASE, IN WHOLE OR IN PART, TO SUCH CORPORATION IS HEREBY APPROVED.. LESSEE SHALL HAVE THE RIGHT TO SUBLEASE THE PREMISES OR PARTS THEREOF, FOR USES AND PURPOSES WHICH ARE IN ACCORD WITH THE PROVISIONS OF THIS LEASES LESSEE REMAINING LIABLE FOR ALL PERFORMANCE REQUIRED UNDER THIS LEASE. ARTICLE XI. PLEDGE OF LEASE IT IS UNDERSTOOD THAT IN BORROWING FUNDS LESSEE CANNOT PLACE A MORTGAGE ON THE LAND COVERED BY THIS LEASE OR ON THE FIXED IMPROVEMENTS PLACED THEREON WHICH IMPROVEMENTS SHALL BE AND BECOME THE PROPERTY OF CITY. HOWEVER, IT IS CONTEMPLATED THAT LESSEE WILL BE REQUIRED TO BORROW FUNDS FOR -13- THE INITIAL CONSTRUCTION OF IMPROVEMENTS AND THAT FROM TIME TO TIME DURING THE TERM OF THIS LEASE IT MAY BE DESIRABLE OR CONVENIENT FOR LESSEE TO BORROW ADDITIONAL FUNDS FOR ADDITIONAL IMPROVEMENTSI ALTERATIONS, REPAIRS OR FOR OTHER PURPOSES. ACCORDINGLY, IT 13 AGREED THAT LESSEE SHALL AT ALL TIMES DURING THE TERM OF THIS LEASE HAVE THE RIGHT TO MORTGAGE OR CONVEY BY DEED OF TRUST OR ANY OTHER SECURITY INSTRUMENT THIS LEASE AND THE LEASEHOLD RIGHTS OF LESSEE CREATED BY THIS LEASE PROVIDED THAT ANY SUCH MORTGAGE, DEED OF TRUST, OR OTHER SECURITY INSTRUMENT WI1L AT ALL TIMES BE SUBJECT TOE AND 7 WILL RECOGNIZE, THE RIGHT, TITLE AND INTEq EST OF CITY AS OWNER OF THE LAND a COVERED BY THIS LEASE AND FIXED IMPROVEMENTS PLACED THEREON AND THE RIGHT OF CITY TO REQUIRE THE PAYMENT OF ALL RENTALS DUE HEREUNDER AND THE FULL AND FAITHFUL PERFORMANCE OF THE COVENANTS AND CONDITIONS OF THIS LEASE BY THE LESSEE. SUBJECT TO ANY SUCH MORTGAGES DEED OF TRUST OR OTHER SECURITY INSTRUMENTS CITY SHALL HAVE A LIEN UPON ALL PERSONAL PROPERTY NOT DAILY EXPOSED TO SALE, OWNED BY LESSEE AND USED,yON THE PREMISES TO SECURE THE PAY- MENT OF ANNUAL RENTALS AS THEY RESPECTIVELY COME DUE HEREUNDER, BUT CITY SUB- ORDINATES ITS LANDLORD'S LIEN ON SUCH PROPERTY TO THE RIGHTS OF THE HOLDER OF ANY SUCH MORTGAGE, DEED OF TRUST OR OTHER SECURITY INSTRUMENT. IN THE EVENT AT ANY TIME DURINO. THE TERM OF THIS LEASE LESSEE OR ANY ONE HOLDING UNDER LESSEE SHALL-B'E IN DEFAULT OF ANY OF THE COVENANTS OR CONDITIONS OF THIS LEASE, THEN AND IN SUCH EVENT, BEFORE FORFEITURE IS INVOKED BY CITY THE HOLDER OF THE MORTGAGE, DEED OF TRUST OR OTHER SECURITY INSTRUMENT MAY MAKE ANY AND ALL PAYMENTS AND DO AND PERFORM ANY AND ALL ACTS AND THINGS WHICH MAY BE NECESSARY OR REQUIRED TO PREVENT A FORFEITURE OF THIS LEASE AND THE PARTY MAKING SUCH PAYMENTS OR PERFORMING SUCH ACTS OR THINGS SHALL THEREBY AND THEREUPON BE SUBROGATED TO ALL RIGHTS OF THE LESSEE UNDER THIS LEASE. CITY AGREES THAT, IF REQUESTED IN WRITING BY THE HOLDER OF ANY MORTGAGE, DEED OF TRUST, OR OTHER SECURITY. INSTRUMENTS CITY WILL SEND TO THE SAID HOLDER AT THE ADDRESS SPECIFIED IN SUCH WRITTEN REQUEST COPIES OF ALL WRITTEN NOTICES OR DEMANDS WHICH CITY MAY SERVE UPON LESSEE OR ANYONE HOLDING UNDER LESSEE UNDER AND PURSUANT TO THE TERMS OF THIS LEASE OR OTHERWISE. —14— IT IS UNDERSTOOD HOWEVER, TIjAT THE MORTGAGEE, TRUSTEE, BENEFI- CIARY OF SAID DEED OF TRUST OR OTHER HgLDER OF SECURITY ABOVE MENTIONED SHALL BE IN NO WAY LIABLE TO CITY FOR THE PAYMENT OF ANY RENT OR FOR THE PERFORMANCE OF ANY OTHER COVENANT AND 9ONDITION UNDER THIS LEASE UNTIL SUCH TIME AS IT SHALL ACQUIRE BY CONVET'ANCE FROM THE LESSEES OR BY FORE- CLOSURE OR OTHER PROCEEDINGS PROVIDED BY LAW OR BY THE TERMS OF THE MORT- GAGE, DEED OF TRUST OR SECURITY INSTRUIENT, ALL THE RIGHT, TITLE AND INTEREST OF THE LESSEE UNDER THIS LEAS9; PROVIDED, HOWEVER, THAT ANY PARTY WHO SHALL ACQUIRE SAID RIGHTS TITLE AND INTEREST OF 'THE LESSEE, AS ABOVE PROVIDED, SHALL THEREUPON AND THEREBY BECOME LIABLE FOR THE FULL PERFORMANCE AND ALL PAYMENTS THERgTOFORE AND THEREAFTER REQUIRED TO BE MADE BY LESSEE UNDER THE COVENANTS AND CONDITIONS OF THIS LEASE, AS FULLY AND AS COMPLETELY AND TO THE SAM9 EXTENT AS THE LESSEE ITSELF WOULD HAVE BEEN IF IT STILL HAD RETAINED ITS RIGHT, TITLE AND INTEREST HEREUNDER. NOTHING IN THIS ARTICLE XI SHALL PREVENT OR DELAY THE TERMINATION OF THIS LEASE UNDER THE PROVISIONS OF ARTICLE II, PROVIDED CITY HAS GIVEN ALL NOTICES AND OPPORTUNITIES OF PERFORMANCE PROVIDED FOR HEREIN AND DEFAULT HAS NOT BEEN CURED. x ARTICLE XII. i CANCELLATION AND FORFEITURE IN THE EVENT LESSEE SHALL BE DECLARED BANKRUPT ACCORDING TO LAWS OR IF ANY ASSIGNMENT SHALL BE ATTEMPTED TO BE MADE OF THIS LEASE FOR THE BENEFIT OF CREDITORS (OTHER THAN AS HEREIN PERMITTED) OR IF LESSEE SHALL ABANDON THE LEASED PREMISES OR IN THE EVENT RENTAL FINALLY DETERMINED TO BE DUE HEREUNDER REMAINS UNPAID FOR SIXTY (60) DAYS AFTER NOTICE OF NON- PAYMENT GIVEN TO LESSEE, THEN IN ANY OF SAID EVENTS CITY MAY BY ORDINANCE DECLARE THE LEASE TO BE TERMINATED AND MAY ENTER INTO AND UPON THE LAND COVERED BY THIS LEASE OR ANY PART THEREOF AND REPOSSESS THE SAME (INCLUDING CAPITAL IMPROVEMENTS AND INSTALLED FIXTURES) AND EXPEL THE LESSEE AND THOSE • • CLAIMING UNDER IT AND REMOVE ITS EFFECTS, FORCIBLY IF NECESSARY, WITHOUT BEING DEEMED GUILTY OF ANY MANNER OF TRESPASS AND WITHOUT PREJUDICE TO ANY REMEDIES WHICH MIGHT OTHERWISE BE USED FOR POSSESSION OR FOR ARREARS OF RENT. IN THE EVENT OF A DISAGREEMENT AS BETWEEN CITY AND LESSEE REGARDING THE AMOUNT OF RENTAL PAYMENTS OWED BY LESSEE TO CITY, THE AMOUNT TO BE PAID SHALL BE FINALLY DETERMINED BY A QUALIFIED AND RECOG- NIZED FIRM OF CERTIFIED PUBLIC ACCOUNTANTS NOT PREVIOUSLY EMPLOYED BY EITHER PARTY WITHIN THE IMMEDIATELY PRECEDING TWO (2) YEARS AND WHO HAS NOT FOR EITHER PARTY AUDITED THE ACCOUNTS OR RECORDS IN QUESTION. IF SUCH DETERMINATION INDICATES CITY'S FIGURES ARE CORRECT�THE COST OF THE AUDIT'SHALL BE PAID BY THE LESSEE. IF SUCH DETERMINATION INDICATES LESSEES FIGURES TO BE CORRECT, THE COST OF THE AUDIT SHALL BE PAID BY CITY. IF NEITHER IS CORRECT, THE COST SHALL BE BORNE EQUALLY] EXCEPT LESSEE SHALL PAY THE COST OF AUDIT IF THE FIGURES ACCOUNTS AND /OR RECORDS FURNISHED TO CITY BY LESSEE ARE INCORRECT, THE TERMINATION AND CANCELLATION OF THIS LEASE SHALL ONLY BE MADE BY ORDINANCE OF THE CITY COUNCIL FOR FAILURE OF LESSEE TO COMPLY WITH THE TERMS AND PROVISIONS OF THE LEASE AND WITH SUCH POWER EXERCISED ONLY AFTER NOTICE AND HEARINGS ALL AS IS PROVIDED IN ARTICLE VIII, SECTION E) OF THE CITY CHARTER. ARTICLE XIII. INDEMNITY LESSEE SHALL PROTECTS INDEMNIFY AND SAVE HARMLESS CITY FROM AND AGAINST ANY AND ALL CLAIMS, DEMANDS AND CAUSES OF ACTION OF ANY NATURE WHATSOEVER FOR INJURY TO OR DEATH OF PERSONS, OR LOSS OR DAMAGE TO PROPERTY, OCCURRING ON THE LEASED PREMISES OR IN ANY MANNER GROWING OUT OF OR CON- NECTED WITH THE LESSEE'S USE AND OCCUPATION OF THE LEASED PREMISES OR THE PIPE LINE AND PUMPING STATION EASEMENT AREA OR THE CONDITION OF THE SAID PREMISES OR EASEMENT AREA DURING THE TERM OF THIS LEASE. -16- ARTICLE XIV. WAIVER OF DEFAULT ANY WAIVER BY CITY OF ANY DEFAULT OR BREACH OF THIS LEASE SHALL NOT BE CONSTRUED TO BE A CONTINUING WAIVER OF SUCH DEFAULT OR BREACH NOR AS A WAIVER OR PERMISSION, EXPRESS OR IMPLIED, OF ANY OTHER OR SUBSEQUENT DEFAULT OR BREACH. ARTICLE XV. FORCE MAJEURE IF BY REASON OF STRIKE, LOCKOUT, WAR, REBELLION, MATERIAL OR LABOR SHORTAGE DUE TO A NATIONAL EMERGENCY, F:P.E, FLOOD, HURRICANE OR OTHER CASUALTY, PERIODS OF EXCESSIVE RAIN, OR BY ANY OTHER MATTER NOT WITHIN ITS CONTROL, CITY OR LESSEE IS IN GOOD FAITH AND WITHOUT FAULT OR NEGLECT ON ITS PART PREVENTED OR DELAYED IN THE CONSTRUCTION OF ANY IMPROVE- MENTS OR IN THE PERFORMANCE OF ANY COVENANT AND CONDITION WHICH UNDER THE TERMS OF THIS LEASE IT IS REQUIRED TO DO WITHIN A SPECIFIED PERIOD OF TIME, THE PERIOD OF TIME WITHIN WHICH SUCH PERFORMANCE WAS TO HAVE BEEN COMPLETED SHALL BE EXTENDED BY A PERIOD OF TIME EQUAL TO THAT OF SUCH DELAY OR PRE- VENTION, AND CITY OR LESSEE, AS THE CASE MAY BE, SHALL NOT BE DEEMED TO BE IN DEFAULT IF IT PERFORMS AND COMPLETES SUCH WORK OR COVENANT OR CONDI- TION IN THE MANNER REQUIRED BY THE TERMS OF THIS LEASE WITHIN THE,SPECI- FIED PERIOD OF TIME AS SO EXTENDED. ARTICLE XVI. DRAINAGE IT IS CONTEMPLATED THAT THE PRESENTLY EXISTING DRAINAGE DITCH WHICH EXTENDS FROM THE OLD BROWNSVILLE ROAD ACROSS THE LEASED PREMISES -z WESTERLY OF THE WEST END OF THE EAST -WEST RUNWAY WILL BE REPLACED BY A DRAINAGE DITCH OF EQUAL HYDRAULIC CAPACITY, SAID RELOCATED DRAINAGE DITCH TO FOLLOW GENERALLY THE COURSE SHOWN ON THE APPROVED PRELIMINARY PLANS. THE CONSTRUCTION OF THE RELOCATED DRAINAGE DITCH SHALL BE BY LESSEE AT i LESSEE'S EXPENSE. OVERFLOW DRAINAGE FROM THE RELOCATED DITCH WILL BE BY MEANS OF A DRAINAGE COURSE CONSISTING OF A SWALE, HOLLOW AND/OR DEPRESSION EXTENDING OR RUNNING FROM SAID PRESENTLY EXISTING OR RELO- CATED DRAINAGE DITCH AT A POINT ON SAID OLD BROWNSVILLE ROAD TO A POINT AT OR NEAR THE SOUTHEAST CORNER OF THE LEASED PREMISES. THE ROUTE OF SAID DRAINAGE COURSE IS SHOWN ON THE APPROVED PRELIMINARY PLANS. SAID DRAINAGE COURSE SHALL BE CONSTRUCTED AND MAINTAINED BY LESSEE AT LESSEE'S EXPENSE. IT IS UNDERSTOOD AND AGREED BY LESSEE AND CITY THAT SAID DRAINAGE COURSE WILL CARRY FLOOD WATERS,'AND LESSEE ASSUMES ALL LIABILITY FOR DAMAGE TO THE LEASED PREMISES AS A RESULT THEREOF OR AS A RESULT OF THE INADEQUACY OF THE CITY'S DRAINAGE DITCHES.. ANY FUTURE REVISION OF THE DRAINAGE OF OR ACROSS THE LEASED PREMISES SHALL BE BY THE IM- PROVEMENT OR REBUILDING OF THE CHANNEL OF THE RELOCATED DRAINAGE DITCH BY CITY AT CITY'S EXPENSE, AND SHALL BE SUBSTANTIALLY IN ACCORDANCE WITH EITHER THE APPROVED PRELIMINARY PLANS OR WITH THE FINAL PLANS THAT MAY BE HEREAFTER AGREED UPON AND APPROVED. ARTICLE XVI1. EASEMENTS THIS LEASE IS MADE SUBJECT TO THE FOLLOWING: A. THE CITY HEREBY RESERVES AN EASEMENT 100 FEET IN WIDTH ACROSS THE LEASED PREMISES AND FOLLOWING THE COURSE OF THE EXISTING. DRAINAGE DITCH UNTIL THE RELOCATED DRAINAGE DITCH AS SHOWN ON THE AP- PROVED PLANS IS CONSTRUCTED, WHEREUPON THE EASEMENT FOR THE EXISTING DITCH SHALL TERMINATE AND THE EASEMENT RESERVED TO THE CITY SHALL FOLLOW THE COURSE OF THE RELOCATED DITCH. THE COURSE OF THIS EASEMENT FOR THE RELOCATED DITCH SHALL BE SHOWN ON THE APPROVED FINAL PLANS. —78— f h a , B. THIS LEASE IS MADE SUBJECT TO THE EXISTING 36" WATER LINE AND 16" GAS LINE NOW IN EXISTENCE IN THE WESTERLY PORTION OF THE LEASED PREMISES. THESE LINES ARE NOW GENERALLY IN A LINE PARALLEL TO AND AN EXTENSION OF BARRERA DRIVE AND RUNNING IN A NORTH —SOUTH DIREC- TION FROM HORNE ROAD TO OLD BROWNSVILLE ROAD ACROSS THE LEASED PREMISES. s THE CITY HEREBY RESERVES ACROSS THE LEASED PREMISES EASEMENTS OF 25 FEET ON EITHER SIDE OF THE SAID 36" WATER LINE AND THE 16" GAS LINE, RESPECTIVELY, WHICH SAID 50 FOOT EASEMENTS MAY OR MAY NOT OVERLAP. C. THE CITY HEREBY RESERVES AN EASEMENT FOR THE TRIANGU- LAR GAS REGULATOR STATION NOW IN EXISTENCE ON THE NORTHWEST BOUNDARY OF THE LEASED PREMISES IMMEDIATELY SOUTHWEST OF OLD BROWNSVILLE ROAD. ' THE LOCATION AND SIZE OF SAID EASEMENT IS SHOWN ON THE MAP OR PLAT'OF THE LEASED PREMISES ON FILE IN THE OFFICE OF THE CITY SECRETARY AND ON THE APPROVED PLANS. - D. THIS LEASE IS SUBJECT TO ALL OTHER EASEMENTS ACROSS THE LEASED PREMISES THAT ARE OF RECORD IN THE OFFICE OF THE COUNTY CLERK OF NUECES COUNTY, TEXAS, AND TO THE RIGHT OF HUMBLE OIL AND REFINING COMPANY TO MAINTAIN TWO PIPELINES NOW EXISTING,ACROSS THE LEASED PREMISES WHETHER OR NOT SUCH RIGHT IS COVERED BY RECORDED EASEMENTS. LESSEE SHALL HAVE THE USE OF THE AREA WITHIN THE PIPE- LINE AND DRAINAGE EASEMENTS, SUBJECT TO THE EASEMENT USE. -18A- it r ARTICLE XVIII GENERAL CLAUSES A. ALL REFERENCES TO THE PARTIES TO THIS LEASE AND ALL COVENANTS, CONDITIONS AND AGREEMENTS OF THIS LEASE SHALL APPLY TO AND BE BINDING UPON CITY AND LESSEE AND THEIR RESPECTIVE HEIRS EXECUTORS, ADMINISTRATORS, LEGAL REPRESENTATIVES, SUCCESSORS AND ASSIGNS (WHEN ASSIGNMENT IS MADE IN ACCORD WITH THE PROVISIONS HEREOF) AS IF THEY WERE IN EACH CASE FULLY NAMED AND STATED. IN THIS LEASE BOTH CITY AND LESSEE ARE REFERRED TO IN THE SINGULAR AND NEUTER GENDER. HOWEVER, SUCH WORDS AND ALL OTHER TERMS AND WORDS USED IN THIS LEASE REGARDLESS OF THE NUMBER AND GENDER IN WHICH THEY ARE USED, SHALL BE DEEMED AND CONSTRUED TO INCLUDE ANY OTHER NUMBER SINGULAR OR PLURAL) AND ANY OTHER GENDER, MASCULINE, FEMININE OR NEUTER, AS THE SENSE OF THE WRITING HEREIN MAY REQUIRE, THE SAME AS IF SUCH WORDS HAD BEEN FULLY AND PROPERLY WRITTEN IN THE REQUIRED NUMBER AND GENDER. B. ALL NOTICES TO THE CITY SHALL BE SENT BY CERTIFIED OR REGISTERED MAIL ADDRESSED TO THE CITY MANAGER, CITY OF CORPUS CHRISTI P. 0. BOX 1622, CORPUS CHRISTI] TEXAS, OR AT SUCH OTHER ADDRESS AS CITY MAY IN WRITING FROM TIME TO TIME DESIGNATE. ALL NOTICES TO LESSEE SHALL BE SENT BY CERTIFIED OR REGISTERED MAIL ADDRESSED TO LESSEE AT 1004 BALTIMORE AVENUES KANSAS CITY 5, MISSOURI OR AT SUCH OTHER ADDRESS AS LESSEE MAY FROM TIME TO TIME DESIGNATE BY WRITTEN NOTICE TO CITY. - C. WHENEVER CITY'S CONSENT TO ANY ACT TO BE PERFORMED BY LESSEE IS REQUIRED UNDER THIS LEASE, CITY AGREES THAT ITS CONSENT WILL NOT BE UNREASONABLY WITHHELD. D. THIS LEASE IS MADE UNDER THE APPLICABLE LAWS OF THE STATE OF TEXAS AND THE CITY CHARTER AND ORDINANCES OF THE CITY OF CORPUS CHRISTI, TEXAS, AND IF ANY TERM, CLAUSE, PROVISION, PART OR PORTION OF THIS LEASE SHALL BE ADJUDGED INVALID OR ILLEGAL FOR ANY REASON THE VALIDITY OF ANY OTHER PART OR PORTION OF THIS LEASE SHALL NOT BE AFFECTED THEREBY AND -THE INVALID OR ILLEGAL TERM, CLAUSE, PROVISION PART OR PORTION SHALL BE DELETED AND IGNORED AS IF THE SAME HAD,NOT BEEN WRITTEN. E. ANY AND ALL PROVISIONS AND CLAUSES IN THIS LEASE CAN BE CHANGED BY CITY AND LESSEE BY MUTUAL AGREEMENT. ANY SUCH CHANGE SHALL BE IN WRITING AND MUST BE APPROVED BY THE CITY COUNCIL OF CITY BY ORDINANCE. -19- F. THIS LEASE WAS AUTHORIZED BY VOTE OF A MAJORITY OF THE QUALIFIED VOTERS IN THE CITY OF CORPUS CHRISTI AT AN ELECTION HELD THE DAY OF , j96_, AT WHICH ELECTION A MAJORITY OF THE QUALIFIED VOTERS VOTED IN FAVOR OF THE ENACTMENT BY THE CITY COUNCIL OF THE PARTICULAR ORDINANCE GRANTING THIS LEASE. THE EXECUTION AND DELIVERY OF THIS LEASE IS FURTHER AUTHORIZED BY ORDINANCE READ AT THREE (3) REGULAR MEETINGS OF THE CITY COUNCIL, TO -WIT, ON THE DAY OF l96_, THE DAY OF , 196_, AND THE DAY OF , �g6 , AND FINALLY ENACTED UPON THE DAY OF , i96 WHICH DATE OF FINAL ENACTMENT WAS MORE THAN THIRTY (30) DAYS AFTER THE FIRST READING THEREOF. THE FULL TEXT OF THIS LEASE WAS FURTHER PUBLISHED ONE TIME IN , A NEWSPAPER OF GENERAL CIRCULATION IN THE CITY OF CORPUS CHRISTI, TEXAS, WITHIN FIVE (5) DAYS FOLLOWING EACH OF THE THREE READINGS OF THE ORDINANCE AND THE EXPENSE OF SUCH PUBLICATION HAS BEEN BORNE BY LESSEE. IN WITNESS WHEREOF, THIS LEASE IS EXECUTED IN DUPLICATE AS OF THE DATE FIRST HEREINABOVE MENTIONED. ATTEST: CITY SECRETARY APPROVED AS TO LEGAL FORM THIS THE DAY OF , 196 . CITY ATTORNEY CITY OF CORPUS CHRISTI BY CITY MANAGER HARRINGTON & CORTELYOU BY -20- LESSEE 0 CORPUS CHRISTIy TEXAS A Fr/ �D AY OF TO THE MEMBERS OF THE CITY COUNCIL CORPUS CHRISTI, TEXAS FOR T He REASONS SET FORTH IN THE EMERGENCY CLAUSE OF THE FORE- GOING ORDINANCE, A PUBLIC EMERGENCY AND IMPERATIVE NECESSITY EXIST FOR THE SUSPENSION OF THE CHARTER RULE OR REQUIREMENT THAT NO ORDINANCE OR RESOLUTION SHALL BE PASSED FINALLY ON THE DATE IT 15 INTRODUCED, AND THAT SUCH ORDINANCE OR RESOLUTION SHALL BE READ AT THREE MEETINGS OF THE CITY COUNCIL; I, THEREFORE, HEREBY REQUEST THAT YOU SUSPEND SAID CHARTER RULE OR REQUIREMENT AND PASS THIS ORDINANCE FINALLY ON THE DATE IT IS INTRODUCED, OR AT THE PRESENT MEETING OF THE CITY COUNCIL. RESPECTFULLY, MAYOR F­ THE CITY OF CORPUS CHRISTI, TEXAS THE CHARTER RULE WAS SUSPENDED BY THE FOLLOWING VOTE:`v / BEN F. MCDONALD ��r ))) TOM R. SWANTNER �j(.•L DR. JAMES L. BARNARD JOSE R. DELEON M. P. MALDONADO X W. J. ROBERTS JAMES H. YOUNG THE ABOVE ABOVE ORDINANCE WAS PASSED BY THE FOLLOWING VOTE: BEN F. MCDONALD Y\ TOM R. SWANTNER DR. JAMES L. BARNARD JOSE R. DELEON M. P. MALDONADO W. J. ROBERTS # JAMES H. YOUNG