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HomeMy WebLinkAbout06787 ORD - 01/30/1963JKH:I2 -17 -62 AN ORDINANCE AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE, FOR AND ON BEHALF OF THE CITY OF CORPUS CHRISTI, TEXAS, A LEASE AGREEMENT WITH HARRINGTON AND CORTELYOU FOR CONSTRUCTION AND OPERATION OF A GOLF COURSE ON A PORTION OF THE FORMER CLIFF MAUS AIRPORT PROPERTY, SAID LEASE TO BE FOR A TERM OF THIRTY (30) YEARS FROM AND AFTER THE DATE OF EXE- CUTION OF SUCH LEASE BY THE CITY, SAID LEASE AGREEMENT HAVING BEEN AUTHORIZED BY THE QUALIFIED VOTERS AT AN ELECTION HELD ON THE 15TH DAY OF DECEMBER, 1962. WHEREAS, THE QUALIFIED VOTERS OF THE CITY OF CORPUS CHRISTI, TEXAS, DID, ON THE 15TH DAY OF DECEMBER, 1962, AT AN ELECTION CALLED BY ORDINANCE N0. 6697, AUTHORIZE THE CITY COUNCIL TO ENACT AN ORDINANCE GRANTING A LEASE TO HARRINGTON AND CORTELYOU ON CERTAIN LANDS DESCRIBED IN SAID LEASE, FOR A TERM OF 30 YEARS; AND WHEREAS, THE AFORESAID LAND TO BE LEASED TO HARRINGTON AND CORTELYOU CONSISTS OF APPROXIMATELY 222.37 ACRES OUT OF THE FORMER CLIFF MAUS AIRPORT PROPERTY, LOCATED IN NUECES COUNTY, TEXAS; AND WHEREAS, IN ORDER TO COMPLY WITH THE WISHES OF THE MAJORITY OF THE VOTERS OF THE CITY OF CORPUS CHRISTI, TEXAS, VOTING IN THE AFORESAID ELECTION, IT IS NECESSARY FOR THE CITY TO ENTER INTO A LEASE AGREEMENT WITH SAID HARRINGTON AND CORTELYOUI NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHR ISVII', TEXAS: SECTION 1. THAT THE CITY MANAGER IS HEREBY AUTHORIZED AND DIRECTED TO EXECUTE, FOR AND ON BEHALF OF THE CITY OF CORPUS CHRISTI, TEXAS, A LEASE AGREEMENT WITH HARRINGTON AND CORTELYOU, AS LESSEE, FOR CONSTRUCTION AND OPERATION OF A GOLF COURSE ON A PORTION OF THE FORMER CLIFF MAUS AIRPORT PROPERTY, LOCATED IN CORPUS CHRISTI, NUECES COUNTY, TEXAS, FOR A PERIOD OF 30 YEARS, SAID LEASE AGREEMENT BEING IN WORDS AND FIGURES AS FOLLOWS, TO -WIT: 67,87 r • 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* 291 30° A DISTANCE OF 426.48 FEET TO A POINT FOR A CORNER OF THIS TRACT; THENCE N. 35° 341 3011 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 870 451 58" A 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 5�8g05 FEET AND A CENTRAL ANGLE OF 80 531 42° A DISTANCE OF 90.83 FEET TO A POINT. SAID CURVE BEING ALONG THE SOUTHEAST RIGHT OF WAY LINE OF OLD BROWNSVILLE ROAD; THENCE N. 43° 061 20° E. WITH THE SOUTHEAST RIGHT OF WAY LINE OF OLD BROWNSVILLE 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 478.86 FEET AND A CENTRAL ANGLE OF 23° 351 30^ A DISTANCE OF 197.17 FEET TO A POINT, THENCE N. 66° 411 5011 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 1130 151 A DISTANCE OF 158.13 FEET TO A POINT FOR A CORNER OF THIS TRACT; THENCE S. 0° 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 222037 ACRES; MORE OR LESS, ALL AS SHOWN BY THE MAP OR PLAT ON FILE IN THE OFFICE OF THE CITY SECRETARY. -2- THE STATE OF TEXAS COUNTY OF NUECES )( LEASE THIS LEASE IS EXECUTED IN DUPLICATE THIS DAY OF , 196_, BY 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 t 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 TAE OTHER CONSIDERATIONS GIVEN BY THE LESSEE HEREIN, CITY HEREBY LEASES TO THE LESSEE, AND LESSEE HIRES FROM THE CITY, THE FOLLOWING PREMISES, TO -WIT2 BEGINNING AT THE SOUTHEAST CORNER OF LOT 1, GUGENHEIM AND COHN FARM LOTS OUT OF SECTION 5y RANGE 9, KINNEY LANDS AS SHOWN BY MAP OR PLAT OF RECORD IN VOL. Ay PAGE 53, MAP RECORDS OF NUECES COUNTY, TEXAS; THENCE S. S9° 561 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° 561 50" W. A DISTANCE OF 2424.51 FEET TO A POINT FOR A CORNER OF THIS TRACT, THENCE N. 57° 011 45" W. A DISTANCE OF 23.08 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° 011 2511 A DISTANCE OF 2 0.54 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; I'll 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 1'30,. YEARS, BEGINNING THE DAY OF , 1963, AND TERMINATING AT MIDNIGHT ON THE DAY OF 9 1993° UPON THE COMPLETION OF THE CONSTRUCTION OF EACH OF THE IMPROVEMENTS LISTED AND DESCRIBED AS MANDATORY ITEMS UNDER ARTICLE 11; PARAGRAPH A, EACH SUCH IMPROVEMENT WHICH IS OF A FIXED NATURE, EXCEPT BUILDINGS, SHALL BE AND BECOME THE PROPERTY OF CITY. UPON THE COMPLETION Or THE CONSTRUCTION OF EACH OF THE IMPROVEMENTS LISTED AND DESCRIBED AS OPTIONAL STEMS 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. 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 D0, 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. A MINIMUM EXPENDITURE OF $200,000.00 WILL BE MADE BY LESSEE IN 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 -3- 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 PREMISES, 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 SMALL 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 REQUIRED, 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 ON THE GOLF COURSE AND, FOR THIS PURPOSE, CITY SHALL MAKE AVAIL- ABLE) 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 -MAY CONNECTING GOLF COURSE AND SEWAGE PLANT FOR CONSTRUCTION) MAINTENANCE) OPERATION AND REPAIR OF A PIPE LINE AND A SUFFICIENT AREA AT THE SEWAGE PLANT FOR CONSTRUCTION) 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 CONSTRUCT, OPERATE, MAINTAIN AND REPAIR, 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 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 (60) 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- 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 MAY, 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 LESSEE, LESSEE SMALL 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 SMALL PROMPTLY SHIFT OR ADJUST SUCH PIPE LINE, 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 COURSE, 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, 19758 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. ARTICLE III PLANS A. PRELIMINARY PLANS TO ILLUSTRATE AND OEVELOP 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 FUTURE, 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, IS 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 m 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 REMOVE, DISPOSE OF, 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 LEASE, IN ADDITION TO THE SURRENDER TO THE CITY OF ALL FIXED IMPROVEMENTS AS HEREINASOVE 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. 7% 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. _g_ 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 V11I) SECTION 6 OF THE CITY CHARTER, LESSEES 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 13 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 -10- 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 CARES MAINTENANCES 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 RECREATION, 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 FORCE, 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 DEATH, OF $100,000.00 AS TO EACH PERSON AND $300,000.00 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 IN 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 MORTGAGEES AND SHALL BE MADE AVAILABLE TO REPAIR RESTORES OR REBUILD THE DAMAGED IMPROVEMENTS. ANY EXCESS PORTION OF THE INSURANCE FUND REMAINING AFTER THE COST OF REPAIRS, REBUILDING OR RESTORA- TION IS PAIDo 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 PARAGRAPH, THIS LEASE SHALL NOT BE ASSIGNED, IN WHOLE OR IN PART, 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 TNIS 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 LEASE, 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 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 IMPROVEMENTS, ALTERATIONS, REPAIRS OR FOR OTHER PURPOSES. ACCOHDINGLY, 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 WILL AT ALL TIMES BE SUBJECT TO, AND WILL RECOGNIZE, THE RIGHT, TITLE AND INTEREST OF CITY AS OWNER OF THE LAND 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 MORTGAGE, DEED OF TRUST OR OTHER SECURITY INSTRUMENT, CITY SHALL HAVE A LIEN UPON ALL PERSONAL PROPERTY NOT DAILY EXPOSED TO SALE, OWNED BY LESSEE AND USED ON THE PREMISES TO SECURE THE PAY- MENT OF ANNUAL RENTALS AS THEY RESPECTIVELY COME DUE HEREUNDER, BUT CITY SUB- ORDINATES ITS LANDLORDS 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 DURING THE TERM OF THIS LEASE LESSEE OR ANY ONE HOLDING UNDER LESSEE SHALL BE 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 INSTRUMENT, 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. • IT IS UNDERSTOOD, HOWEVER, TgAT THE MORTGAGEE, TRUSTEE, BENEFI- CIARY OF SAID DEED OF TRUST OR OTHER HOLDER 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 CONDITION UNDER THIS LEASE UNTIL SUCH TIME AS IT SHALL ACQUIRE BY CONVEYANCE FROM THE LESSEE, OR BY FORE- CLOSURE OR OTHER PROCEEDINGS PROVIDED 13Y LAW OR BY THE TERMS OF THE MORT- GAGE, DEED OF TRUST OR SECURITY INSTRUMENT, ALL THE RIGHT, TITLE AND INTEREST OF THE LESSEE UNDER THIS LEASC; PROVIDED, HOWEVER, THAT ANY PARTY WHO SHALL ACQUIRE SAID RIGHT, 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 SAME 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 XII, PROVIDED CITY HAS GIVEN ALL NOTICES AND OPPORTUNITIES OF PERFORMANCE PROVIDED FOR HEREIN AND DEFAULT HAS NOT BEEN CURED. ARTI CI;E XI I . CANCELLATION AND FORFEITURE IN THE EVENT LESSEE SHALL BE DECLARED BANKRUPT ACCORDING TO LAW, 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 _15- • R 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 HEARING] ALL AS IS PROVIDED IN ARTICLE VIII, SECTION 6 OF THE CITY CHARTER. ARTICLE XIII. INDEMNITY LESSEE SHALL PROTECT, 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. FORCES MAJEURE IF BY REASON OF STRIKE, LOCKOUT, WAR, REBELLION, MATERIAL OR LABOR SHORTAGE DUE TO A NATIONAL EMERGENCY, FIRE, FLOOD, HURRICANE OR OTHER CASUALTY, PERIODS OF EXCESSIVE RAIN, OR BY ANY OTHER MATTER NOT WITHIN ITS CONTROL, CITY ON 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 CONDuTION 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 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 -17- • • LESSEES 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 LEssEEts 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 DRA6MAGE 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 XVII. EASEMENTS THIS LEASE 15 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. In • 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 BN A NORTH -SOUTH DIREC- TION FROM HORNE ROAD TO OLD BROWNSVILLE ROAD ACROSS THE LEASED PREMISES. THE CITY HEREBY RESERVES ACROSS THE LEASED PREMISES EASEMENTS OF 25 FEET ON EITHER SIDE OF THE SAID 36" WATER LINE AND THE 96" 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- 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. O. 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 AVENUE, 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. 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 , tg6_, 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 1g6_, THE DAY OF AND THE DAY OF , tg6 , AND FINALLY ENACTED UPON THE DAY OF , 196_, 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. CITY OF CORPUS CHRISTI BY ATTEST: CITY MANAGER CITY SECRETARY APPROVED AS TO LEGAL FORM THIS THE DAY OF 1g6 . CITY ATTORNEY HARRINGTON & CORTELYOU BY -20- LESSEE THAT THE FOREGOING ORDINANCE WAS E FOR THE FI T TIME AND PAS D TO ITS SECOND READING ON THIS THE DAY OF �9 BY THE FOLLOWING VOTE% BEN F. AICDONALD � �! TON R. SWANTNER °�---° DR. JAMES Lo BARNARD JOSE R. DELEON Me Po MALDONADO W. J. ROBERTS JAMES He YOUNG THAT THE FOREGOING ORDINANCE WAS E D FOR THE 3 D TIME AND PA9�% TO ITS THIRD READING ON THIS THE DqY OF 19 BY THE FOLLOWING VOTE: BEN F. MCDONALD TOM Re SWANTNER DRo JAMES Lo BARNARD JOSE Re DELEON M. Pe 14ALOOMADO W. J. ROBERTS JAMES H. YOUNG THAT THE FORE G ORDINq E AS READ FOR H THIRD `PIME AND PASSED FINALLY ON THIS THE DAY OF 19 BY THE FOLLOWING VOTE: / BEN Fe CDONAL. TOM Re SWANTNER DRo JAMES Lo BARNARD Jose Re DELEON M. Po MALDONADO W. J. ROBERTS , JAMES Ho YOUNG PASSED AND APPROVEDa THIS THE ,fe DAY ITY SEC ETq APPROVED AS TO L LJFORM THIS DAY OF 196 Y y i96 ;. MAYOR / THE CITY OF CORPUS CHRISTI, TEXAS, 0 . 1, . � . THAT THE FOREGOING ORDINANCE WASP FOR THE T�E AND PAS VD 10 ITS SECOND READING ON THIS THE / DAY OF 19—L BY THE FOLLOWING VOTES BEN F. MCDONALD Tom R. SWANTNER DR. JAMES Le BARNARD Jose R. DELEON M, P. MALDONADO W. J. ROBERTS JAMES H. YouNG TH THE FOREGOING ORDINANCE WAS READ FOR THE -IMAM TIM pyp PASSED TO ITS HIRD READING ON THIS THE 1L_DAY OF BY E FOLLOWING VOTE: BEN Fu MCDONALD 1 y- 0" Re SWANTNER DRe Lo BARNARD JOSE Rc DELEO , M. P. JAMES H. YOUNG i THAT THE FORE ING ORDINA E WAS READ FOR THg Ti#kR TIME . PASSED FINALLY ON THIS THE BAY OF VOTES �9 /�Z�% D BY THE FOLLOWI N6 BEN F. MCDONALD TOM Re SWANTNER DR. JAMES Lo BARNARD Jose R. DELEoN M. Po MALDONADO W. J. ROBERTS JAMES H. YOUNG PASSED AND APPROVED, THIS THE _fin DAY ArMSECRETAR r / ITY APPROVED AS To LEGAL FORM TH'9S DAY OF D lq6 I Y T ORNEY Igz a ,> THE CITY OF CORPUS CHRIST/ TEXAS, r PUBLISHER'S AFFIDAVIT STATE OF TEXAS, �ss c County of Nueces. Before me, the undersigned, a Notary Public, this day personally came ............ „. Baxnmg ...... ..................... who being first duly sworn, according to law, says that he is the deeFt.]sirlg.1 nAEIK...._.. of the Corpus Christi Caller and The Corpus Christi Times, Daily Newspapers published at Corpus Christi, Texas, in said County and State, and that the publication of , LEGAL - -An Cbdinapoe authoriziaR a lease agreement with Harrington and Cor�eY�ou 3` r..QOris£rao£ ion �- operation of" °Goff "�eo'urs Hlii3'�a`u8 " " "Arr_MV---,�'t of which the annexed is a true copy, was published in The Timea 4 on the....... day of....... °D - @o emb er ....... 19.62., and a= ..2_tim�8s....- thereafter tax.___. .... _ _ s e e. a met --- X1,1963 . .....- -•---- 3 ............. Times. s•.- •------- 5.5�,eo tl ed_A ®e"r rl _ _ - -- Subscribed and sworn to before me this ....... 7 .. ...... .....day of.._F.sbr.uarp- - -..... .. ........ . . .••. ....19.._6 Louise ®iak _ of �- Pub ' Nuecea County, Tezaa ��� TELEPHONE MESSAGE STD form 36 (Rev. 6 -58) Date % oL To T,C K l M Of (comA�T►y) a.m. called at p.m. and left the following message: �/vtnZW � 44ZL, Fy - � . " �f Please return caller Phone No. —10 3 f " Returned your call=] Will call again 0 Bys Jan. 21, 1963 as addressed the apprentices c anong other things, "Curre rends and Problems Co erning the Moral ___'Co 'ence and Free -Will" and "di ice and Charity." The budding barmen also ha ward balls by union officials i re practical matters, includil unetuallty, hygiene, attire az oDd manners while worldng. For n= of Casa CALL TU2.3341 1330 KOSTORYZ SAVE WITH LOW DISCOUNT PRICES: L�! t DOUBLE, STAMPS WED. WITH $2.50 PURCHASE OR MORE BABY BEEF GOVERNMENT INSPECTED ROUND OR SIRLOIN FRESH GROUND Hamburger ...., 3,s. 89c PURE PORK BULK f SAUSAGE ......... 3 Lam. 89c FRESH COARSE GROUND CHILI MEAT ..........LB. 39c SPECIALS FOR MONDAY, TUESDAY and WEDNESDAY • JANUARY 21, 22, 23 WE RESERVE THE RIGHT TO LIMIT QUANTII NORTHERN CORN FED Pork Steaks'.L.. LB. 45c Pork Fleck BONES 19c Pork Feet F .. RES........ LB. 19C FLEECY WHITE TREND TWIN PACK OLD DUTCH LUX BLEACH POWDER CLEANSER LIQUID (So OFF) �e GALLON........ 49c REG. BOX........... 35C REG. PACK ......... 15c 22 oz.......... 65 � FRANCO AMERICAN FRANCO AMERICAN STALEY WAFFLE AUNT JEMIMA BUTTERMILK MACARONI & CHEESIER SPAGHETTI AND SYRUP' PANCAKE MIX AUSTEX PLAIN MEAT BALLS CHILI ................24 .. CAN 67c CAN C 1901 25c QT 43c PKG 43C .......... . CAN .......... . ............ .......... 3 MINUTE REG. OR QUICK C ox. JAR OATS ......•••.•••...E -.Box 23c SCOTTIES TISSUES .........400 cr.'BOX 25c, AUSTEX PLAIN ' CHILI ................24 .. CAN 67c RANCH STYLE BEANS NO: 300 CAN 2 I� ' FORM KRAFT APPLE SANTA ROSA PINEAPPLE JUICE NO.2 CAN ......... 3 FOR 19c CONTADINA SPICED -/�' PEACHES ..... NO. 21 /2 CAN 25C TEMPTING BOTTLE SIZE PLUMS 23c ......... .NO.21/2 CAN COCK -O -WALK - NO. Fruit Cocktail 2F.. 300 CAN 39c CHASE b SANBORN INSTANT COFFEE (20e OFF) C ox. JAR /� 79c 3 MINUTE YELLOW POPCORN ........ 2 BAG 29c ADOLPHUS `RICE .................. 2 Lb. PKG.37c KRAFT APPLE JELLY ...............16 us. JAR 29c SPEAS APPLE JUICE ..............QT. CONGESTAID ROOM VAPORIZER ...REG: BOTTLE SIZE 27c 98C LOUISIANA NO. 1 1 YAMS ............. 2 PFORD5 25c FRESH GREEN BEANS ....LB. 25c