HomeMy WebLinkAbout07182 ORD - 03/25/1964MS:EE:3/23/64
AN ORDINANCE
AUTHORIZING AND DIRECTING THE CITY MANAGER FOR AND
ON BEHALF OF THE CITY OF CORPUS CHRISTI TO ACCEPT
AND APPROVE AN ASSIGNMENT AGREEMENT BETWEEN THE
CORPUS CHRISTI BANK AND TRUST COMPANY, TRUSTEE, AND
SCOTT BLEDSOE, JR., OF BEE COUNTY,,TEXAS, COVERING
A COMMERCIAL HANGAR AND FIXED BASE AVIATION LEASE
PLOT ON CORPUS CHRISTI MUNI,CIPAL_AIRPORT SITE, WHICH *'
PLOT IS AN AREA 500 FEET BY 350 FEET ADJOINING AND
NORTHEAST OF TAXIWAY "P ", THE SOUTHEAST CORNER OF
SAID LAND AREAAT A POINT ON THE NORTHEAST EDGE OF
SAID TAXIWAY "P" 750.FEET FROM THE EASTERN MOST
CORNER OF SAID TAXIWAY "P ", A COPY OF SAID ASSIGNMENT
AGREEMENT IS ATTACHED HERETO.AND MADE A PART.HEREOF;
AND DECLARING AN EMERGENCY.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORRUS CHRISTI,
TEXAS:
SECTION 1. THAT THE CITY MANAGER IS HEREBY AUTHORIZED AND
DIRECTED, FOR AND ON BEHALF OF THE CITY OF CORPUS CHRISTI, TO ACCEPT AND
APPROVE AN ASSIGNMENT AGREEMENT, BETWEEN CORPUS CHRISTI BANK AND TRUST
COMPANY, TRUSTEE, AND SCOTT BLEDSOE, JR., OF A COMMERCIAL HANGAR AND
FIXED BASE AVIATION LEASE PLOT, WHICH PLOT IS AN AREA 500 FEET BY 350 FEET
ADJOINING AND NORTHEAST OF TAXIWAY "P ", THE SOUTHEAST CORNER OF SAID LAND
AREA AT A POINT ON THE NORTHEAST EDGE OF SAID TAXIWAY "P" 750 FEET FROM THE
EASTERNMOST CORNER OF SAID TAXIWAY "P ", A COPY OF SAID ASSIGNMENT AGREE-
MENT BEING ATTACHED HERETO AND MADE A PART HEREOF AS IF COPIED VERBATIM
HEREIN.
SECTION 2. THE NECESSITY FOR IMMEDIATE APPROVAL BY THE CITY
OF THE PROPOSED ASSIGNMENT OF LEASE, WHICH ASSIGNMENT IS MADE BY AND BE-
TWEEN THE CORPUS CHRISTI BANK & TRUST COMPANY, TRUSTEE, AND ASSIGNEE,
SCOTT BLEDSOE, JR., SO AS TO ENABLE THE LESSEE TO BEGIN PREPARATION OF
PLANS ON SAID, PLOT AND COMMENCE CONSTRUCTION AS QUICKLY AS POSSIBLE CREATES
A PUBLIC EMERGENCY AND AN IMPERATIVE PUBLIC NECESSITY REQUIRING THE SUS-
PENSION 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 THAT SUCH EMERGENCY AND NECESSITY EXIST,
AND HAVING REQUESTED THAT SUCH CHARTER RULE BE SUSPENDED, AND THAT THIS
A
7,g 182 pry _ {
ORDINANCE BE PASSED FINALLY ON THE DATE OF ITS INTRODUCTION AND TAKE EFFECT
AND BE IN FULL FORCE AND EFFECT FROM AND AFTER ITS P SSAGE, IT IS ACCORDINGLY
PASSED AND APPROVED, THIS THE — DAY OF 1864.
• MAYOR
ATTEST- - THE CITY OF CORPUS CHRISTI, TEXAS
CITY SECRETARY
APPROVED AS TO L GAL FORM THIS
DAY OF M ad 1964:
s
CITY ATT RN `
M
3/24/64
ASSIGNMENT OF LEASE
HANGAR AND FIXED BASE OPERATORS
THE STATE OF TEXAS ]
COUNTY OF NUECES ]
THIS AGREEMENT MADE BY AND BETWEEN THE CORPUS CHRISTI BANK
& TRUST COMPANY, TRUSTEES HEREINAFTER REFERRED TO AS ASSIGNOR, AND SCOTT
BLEDSOE, JR., OF THE COUNTY OF BEES STATE OF TEXAS, HEREINAFTER REFERRED
TO AS ASSIGNEE,
WITNESSETH:
WHEREAS, THE ASSIGNOR HEREIN, THE CORPUS CHRISTI BANK & TRUST
COMPANY, TRUSTEE, HAS, BY AGREEMENT WITH THE CITY OF CORPUS CHRISTI,
LEGALLY BECOME THE LESSEE'OF CERTAIN LANDS AND LEASE SITES, CERTAIN
PORTIONS OF WHICH ARE DESIGNATED FOR COMMERCIAL HANGAR AND FIXED BASE
OPERATIONS, ALL AS SHOWN ON THE MASTER PLAN OF THE NEW MUNICIPAL AIRPORT
ON FILE IN THE OFFICE OF THE DIRECTOR OF PUBLIC WORKS OF THE CITY OF
CORPUS CHRISTI, AND AS LOCATED WITHIN THE SITE OF THE MEW CORPUS CHRISTI
MUNICIPAL AIRPORT, NUECES COUNTY, TEXAS$ AND,
WHEREAS, THE AFORESAID AGREEMENT BETWEEN THE CORPUS CHRISTI
BANK & TRUST COMPANY, TRUSTEE, AND THE CITY OF CORPUS CHRISTI, WAS DULY
AND LEGALLY APPROVED BY THE QUALIFIED VOTERS AT AN ELECTION HELD ON
AUGUST 292 9959; AND
WHEREAS, THE CITY OF CORPUS CHRISTI PROPOSES TO MAINTAIN AND
OPERATE THE NEW MUNICIPAL AIRPORT AS A PUBLIC AIRPORT AND ALL USES INCI-
DENT THERETO, FOR THE BENEFIT OF THE PUBLIC; AND
WHEREAS, ASSIGNEE PROPOSES TO ENGAGE IN COMMERCIAL HANGAR
AND FIXED BASE AVIATION OPERATIONS, AS HEREINAFTER DEFINED, AT THE
NEW CORPUS CHRISTI MUNICIPAL AIRPORT; AND
WHEREAS, ASSIGNOR DEEMS IT ADVANTAGEOUS TO ASSIGN UNTO
ASSIGNEE A SITE ON THE NEW MUNICIPAL AIRPORT, AS SHOWN AND DESCRIBED
ON EXHIBIT A, WHICH IS ATTACHED HERETO AND MADE A PART HEREOF, AS MORE
PARTICULARLY DESCRIBED HEREINAFTERS TOGETHER WITH THOSE PRIVILEGES,
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RIGHTS, USES AND INTERESTS INCIDENT THERETO., AS HEREINAFTER SET
OUT; AND
WHEREAS, ASSIGNEE DESIRES TO OBTAIN AND AVAIL ITSELF OF
SAID AREA, AS HEREINAFTER DESCRIBED, AND OF THOSE PRIVILEGES, RIGHTS,
USES AND INTERESTS INCIDENT THERETO, AS HEREINAFTER SET OUT:
NOW, THEREFORE, IN CONSIDERATION OF THE PREMISES AND FOR
AND IN CONSIDERATION OF THE CHARGES, FEES, RENTALS, COVENANTS AND
AGREEMENTS CONTAINED HEREIN, THE PARTIES HERETO DO HEREBY AGREE AS
FOLLOWS:
ARTICLE 9
RIGHT TO ASSIGN
THE CITY OF CORPUS CHRISTI, A MUNICIPAL CORPORATION,
SITUATED IN NUECES COUNTY, TEXAS, THE SPONSOR AND OWNER OF THE NEW
CORPUS CHRISTI MUNICIPAL AIRPORT, DOES BY THE ACCEPTANCE OF THIS
ASSIGNMENT AND AGREEMENT, AGREE TO ALL OF THE TERMS AND CONDITIONS
SET OUT HEREIN AND AGREES THAT IN THE EVENT OF A. JUDICIAL DETERMINATION
THAT THIS AGREEMENT WAS ENTERED INTO CONTRARY TO LAW AS BETWEEN
ASSIGNOR AND ASSIGNEE OR THAT ASSIGNOR, CORPUS CHRISTI BANK & TRUST
COMPANY, DID NOT HAVE LEGAL AUTHORITY TO ENTER INTO THIS ASSIGNMENT,
THEN THE CITY AGREES TO TAKE WHATEVER REASONABLY NECESSARY STEPS MAY
BE REQUIRED TO PROVIDE ASSIGNEE WITH A GOOD AND VALID ASSIGNMENT OR
LEASE OF THE SPACE HEREINAFTER DESCRIBED. IT IS UNDERSTOOD BY AND
BETWEEN THE PARTIES HERETO THAT THIS ASSIGNMENT AND AGREEMENT MUST
BE ACCEPTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF CORPUS
CHRISTI, ACTING BY AND THROUGH ITS CITY MANAGER, IN WRITING NOTED
HEREIN, BEFORE THE CITY IS BOUND BY ANY OF THE TERMS OR CONDITIONS
SET FORTH HEREIN.
ARTICLE It
DESCRIPTION OF ASSIGNED SPACE
ASSIGNOR DOES HEREBY ASSIGN UNTO ASSIGNEE, SUBJECT TO ALL
OF THE TERMS, CONDITIONS AND COVENANTS OF THIS AGREEMENT, AND THE
AGREEMENT BETWEEN THE CITY OF CORPUS CHRISTI AND ASSIGNOR AS HEREIN -
ABOVE DESCRIBED, AN AREA DESIGNATED FOR COMMERCIAL HANGAR AND FIXED
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BASE AVIATION OPERATIONS LOCATED GENERALLY ON THE WEST SIDE OF THE
TERMINAL BUILDING FACILITIES WITHIN THE AREA AND ALL AS SHOWN AND
DESCRIBED ON THE ATTACHED DRAWING MARKED TRACT A ON EXHIBIT A, WHICH
IS MADE A PART HEREOF FOR ALL INTENTS AND PURPOSES AS IF COPIED VERBATIM
HEREIN. SAID AREA HEREBY LEASED IS MORE PARTICULARLY DESCRIBED BY METES
AND BOUNDS AS FOLLOWS:
BEGINNING AT THE MOST EASTERN CORNER OF THE INTERSECTION
OF TAXIWAY "Q" WITH TAXIWAY "P" AND CONTINUING ALONG THE
NORTHEAST LINE OF TAXIWAY "P" A DISTANCE OF 750 FEET TO
A POINT FOR A PLACE OF BEGINNING;
THENCE CONTINUING ALONG THE NORTHEAST LINE OF TAXIWAY "P"
A DISTANCE OF 500 FEET FOR THE WESTERN CORNER;
THENCE AT RIGHT ANGLES A DISTANCE OF 350 FEET FOR THE
NORTH CORNER;
THENCE ALONG A LINE PARALLEL TO THE NORTHEASTERN LINE OF
TAXIWAY "P" A DISTANCE OF 350 FEET FROM SAID NORTHEASTERN
LINE A DISTANCE OF 500 FEET TO A POINT FOR THE EASTERN
CORNER;
THENCE AT RIGHT ANGLES A DISTANCE OF 350 FEET TO THE
PLACE OF BEGINNING.
IN ADDITION TO THE ABOVE DESCRIBED PREMISES, ASSIGNEE HEREIN
SHALL HAVE A RIGHT OF REFUSAL TO LEASE AN AREA ADJACENT TO THE NORTHWEST
OF THE AREA HEREBY LEASED AND DESIGNATED "RIGHT OF REFUSAL AREA" AS SHOWN
ON EXHIBIT A AND MORE PARTICULARLY DESCRIBED AS FOLLOWS:
BEING AN AREA 350 FEET BY 250 FEET EXTENDING IN A NORTH-
WESTERLY DIRECTION AND ABUTTING 250 FEET ON THE SAID
TAXIWAY "P ".
THEN THE RIGHT OF REFUSAL CONCERNING THIS AREA SHALL BE ON THE
FOLLOWING TERMS AND CONDITIONS:
IN THE EVENT A BONA FIDE OFFER IS SUBMITTED TO THE CITY BY A
THIRD PARTY TO LEASE ALL OR A PORTION OF SAID RIGHT OF REFUSAL AREA, THEN
THE CITY SHALL NOTIFY THE ASSIGNEE HEREIN AND THE ASSIGNEE MUST EXERCISE
ITS RIGHT TO LEASE SAID AREA AT THE TERMS OF SAID BONA FIDE OFFER, WITHIN
FIFTEEN (15) DAYS FROM THE RECEIPT OF THE NOTICE. THE CITY SHALL PROVIDE
SAID NOTICE IN WRITING AND LIKEWISE THE ASSIGNEE MUST PROVIDE ITS NOTICE
TO THE CITY THAT IT DESIRES TO EXERCISE ITS RIGHT TO LEASE IN WRITING.
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ARTICLE III
PRIVILEGES, RIGHTS, USES AND INTERESTS
IN ADDITION TO THE PRIVILEGES, RIGHTS, USES AND INTERESTS
ATTACHING TO THE ASSIGNED PREMISES BY VIRTUE OF THE ASSIGNMENT, THE
FOLLOWING USES, RIGHTS AND INTERESTS ARE HEREBY AGREED UPON BY AND
BETWEEN THE PARTIES:
A. USE OF ASSIGNED PREMISES. ASSIGNEE SHALL USE THE
PREMISES HEREIN ASSIGNED FOR COMMERCIAL HANGAR AND FIXED BASE
AVIATION OPERATIONS HEREIN DEFINED. NO OTHER USE SHALL BE MADE OF
THE ASSIGNED PREMISES WITHOUT THE SPECIFIC WRITTEN PERMISSION OF THE
CITY PRIOR TO THE BEGINNING OF ANY OTHER USES.
B. DEFINITION. HANGAR AND FIXED BASE OPERATIONS ARE
HEREBY DEFINED AS THE HOUSING IN HANGARS AND RELATED SHOP AND OFFICE
SPACE AND ENGAGING IN ANY ACTIVITY RELATED TO THE BUSINESS OF RE-
PAIRING, LEASING, PURCHASING, OR OTHERWISE ACQUIRING, SELLING,
EXCHANGING, DISPENSING, FINANCING, INSURING, OR DEALING IN OR DISTRIBU-
TING AIRCRAFT OF EVERY CLASS AND DESCRIPTION INCLUDING ENGINES, MOTORS,
AIRCRAFT INSTRUMENTS, SUPPLIES AND ACCESSORIES; THE SERVICING OF AIR-
CRAFT WITH FUELS AND LUBRICANTS; THE OPERATION OF AERIAL TAXI AND SIGHT-
SEEING SERVICES AND AERIAL ADVERTISING, AERIAL SURVEY, AERIAL PHOTOG-
RAPHY AND MAPPING; THE OPERATION OF SCHOOLS OF FLYING, NAVIGATION,
MECHANICS, AERIAL SURVEY, AERIAL PHOTOGRAPHY, AERIAL DESIGNING, AERIAL
CONSTRUCTION) AERONAUTICAL AND ALLIED RESEARCH; THE OPERATION OF THE
BUSINESS OF NON - SCHEDULED TRANSPORTATION OF PASSENGERS; THE UNDERTAKING
OF ANY PHASE OF AVIATION ACTIVITY FOR PROFIT RELATED TO OR CONTRIBUTING
IN ANY WAY TO AIRCRAFT SALES, SERVICING AND DISTRIBUTION OR AERIAL
NAVIGATION. THIS DEFINITION SHALL ALSO INCLUDE THE GENERAL AND SPECIAL
PRIVILEGES, RIGHTS, USES AND INTERESTS AS SET OUT HEREINAFTER IN ARTI-
CLE III, PARAGRAPHS C AND D.
C. GENERAL PRIVILEGES, RIGHTS, USES AND INTERESTS. IN
ADDITION TO THE ABOVE DESCRIBED ASSIGNED SPACE, THE ASSIGNEE HEREIN
SHALL HAVE THE RIGHT TO USE THE PUBLIC AREAS AND PUBLIC AIRPORT
FACILITIES INCLUDING THE RUNWAYS, TAXIWAYS, APRONS, RAMPS AND NAVI-
GATIONAL AIDS AND FACILITIES IN COMMON WITH OTHERS SO AUTHORIZED.
IT IS MUTUALLY AGREED, HOWEVER, THAT THE RIGHT TO USE THE PUBLIC
AIRPORT FACILITIES SHALL BE EXERCISED SUBJECT TO AND IN ACCORDANCE
WITH THE LAWS OF THE UNITED STATES OF AMERICA AND THE STATE OF
TEXAS, AND THE RULES AND REGULATIONS PROMULGATED BY THEIR AUTHORITY
WITH REFERENCE TO AVIATION AND AIR NAVIGATION, AND IN ACCORDANCE
WITH ALL REASONABLE AND APPLICABLE RULES, REGULATIONS AND ORDINANCES
OF THE CITY OF CORPUS CHRISTI.
D. SPECIAL PRIVILEGES, RIGHTS, USES AND INTERESTS.
WITHOUT LIMITING THE RIGHTS OF THE ASSIGNEE HEREIN, THE ASSIGNEE
SHALL HAVE THE FOLLOWING SPECIAL PRIVILEGES, RIGHTS, USES AND
INTERESTS:
I. THE RIGHT TO SELL AIRCRAFT FUELS, LUBRICANTS AND
PROPELLENTS ON THE ASSIGNED PREMISES AND ON ANY OTHER PUBLIC APRON
SUBJECT TO THE REASONABLE RULES, REGULATIONS AND ORDINANCES OF THE
CITY OF CORPUS CHRISTI. ASSIGNOR AND THE CITY RESERVE THE RIGHT,
HOWEVER, TO LEASE OR RENT THE APRON IMMEDIATELY ADJACENT TO THE
CONTROL TOWER ANNEX BUILDING, KNOWN AS AND AS SHOWN ON THE MASTER
PLANS OF THE NEW MUNICIPAL AIRPORT AS THE TRANSIENT APRON, TO AN
OPERATOR OR OPERATORS AS A SEPARATE BUSINESS FOR THE DISPENSING OF
FUELS, LUBRICANTS AND PROPELLENTS AND/OR FOR THE OPERATION OF THE
TIE -DOWN FACILITIES LOCATED ON SAID APRON. IN THE EVENT THAT THE
TRANSIENT APRON IS OPERATED AS A SEPARATE BUSINESS, INCLUDING THE
DISPENSING OF FUELS, LUBRICANTS AND OTHER PROPELLENTS AND/OR THE
OPERATION OF THE TIE -DOWN FACILITIES, THEN ASSIGNEE SHALL NOT HAVE
THE RIGHT TO THE USE OF THE TIE -DOWNS ON SAID APRON OR TO SELL AND
DISPENSE FUELS, LUBRICANTS OR PROPELLENTS ON SAID APRON IN COMMON WITH
OTHERS SO AUTHORIZED. THE ASSIGNEE HEREIN SHALL HAVE THE RIGHT TO
SELL AIRCRAFT FUELS, LUBRICANTS AND PROPELLENTS TO ANY AND/OR ALL OF
THE COMMERCIAL AIRLINES AND NON- SCHEDULED AIRLINES OR AIRCRAFT USING
'THE AIRPORT AND TO SELL AIRCRAFT FUELS, LUBRICANTS AND PROPELLENTS
WITHIN ANY PRIVATE HANGAR AREA (PRIVATE MEANS PRIVATELY OWNED HANGARS
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FOR THE STORAGE OF THE OWNERS OWN AIRCRAFT AND DOES NOT MEAN COMMERCIAL
HANGARS, WHETHER PRIVATELY OWNED OR NOT, IN WHICH COMMERCIAL FIXED BASE
AVIATION OPERATIONS ARE CONDUCTED) LOCATED ON THE AIRPORT.
Z. ASSIGNEE HEREIN SHALL HAVE THE RIGHT TO STORE AIRCRAFT
FUELS, LUBRICANTS AND PROPELLENTS ON THE ASSIGNED PREMISES, SUBJECT
TO THE TERMS AND CONDITIONS AS HEREINAFTER SET FORTH.
3. THE ASSIGNEE HEREIN SHALL HAVE THE RIGHT TO MAINTAIN
AND OPERATE MOBILE EQUIPMENT WHEN REASONABLE AND NECESSARY TO FILL
AND DISPENSE AIRCRAFT FUELS, LUBRICANTS AND PROPELLENTS ON THE
ASSIGNED PREMISES AND WITHIN THE AREA AS ABOVE MENTIONED, WITH RIGHT
OF ACCESS 1T1O THE COMMERCIAL RAMP AND CONNECTING TAXIWAYS.
4. THE ASSIGNEE HEREIN SHALL HAVE THE RIGHT TO MAINTAIN,
STORE AND SERVICE AIRCRAFT WHICH SHALL INCLUDE THE HANGARING OF
SAID AIRCRAFT, MAJOR AND MINOR OVERHAULING AND REPAIRING OF AIRCRAFT,
REPAIRING, INSPECTION AND LICENSING OF SAME, AND THE RIGHT TO PUR-
CHASE AND SELL PARTS, EQUIPMENT AND AIRCRAFT ACCESSORIES.
5. THE ASSIGNEE HEREIN SHALL HAVE THE RIGHT TO PURCHASE
AND SELL, WITHIN THE ASSIGNED PREMISES, AERONAUTICAL CHARTS, PUPLICA-
TIONS, CAPS, SUNGLASSES, COMPUTERS, RADIOS, AND OTHER AVIATION RELATED
ITEMS NORMALLY SOLD AND DISPENSED BY COMMERCIAL FIXED BASED HANGAR
OPERATORS.
6. ASSIGNEE HEREIN SHALL HAVE THE RIGHT TO RENT, LEASE
AND CHARTER AIRCRAFT AND TO ENGAGE IN THE BUSINESS OF TEACHING AND/OR
OTHERWISE INSTRUCTING FLYING AND AIRCRAFT MECHANICS.
7. THE ASSIGNEE HEREIN SHALL BE ENTITLED TO PLACE AND
ERECT SIGNS AND ADVERTISING MATERIAL WITHIN THE HANGARS, OFFICES AND
SHOPS ON THE ASSIGNED PREMISES AT ASSIGNEE'S DISCRETION, AND ASSIGNEE
SHALL HAVE THE RIGHT TO PLACE AND ERECT SIGNS AND OTHER ADVERTISING
MATERIAL ON THE OUTSIDE£OF ASSIGNEE'S BUILDINGS, SHOPS AND OFFICES
PROVIDED THAT THE SIZE AND SHAPE OF SUCH SIGNS SHALL CONFORM TO THE
GENERAL APPEARANCE OF THE AIRPORT AND THE BUILDINGS LOCATED THEREON,
SUBJECT TO THE APPROVAL OF THE AIRPORT MANAGER AS TO THE COMPLIANCE OF
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ANY SUCH SIGNS WITH THE RESTRICTIONS HEREOF. THE ASSIGNEE SHALL ALSO
HAVE THE RIGHT TO PLACE AND ERECT SIGNS AND ADVERTISING MATERIAL AT OTHER
LOCATIONS ON THE AIRPORT, PROVIDED THAT WRITTEN PERMISSION IS OBTAINED
FROM THE AIRPORT MANAGER PRIOR TO THE INSTALLATION OF ANY SIGN OR
ADVERTISING MATERIAL AT ANY LOCATION OUTSIDE OF OR OFF THE ASSIGNED
PREMISES, AND SUBJECT TO THE ORDER OF THE AIRPORT MANAGER TO REQUIRE
THE REMOVAL OF SUCH INSTALLATIONS OR ANY OF THEM AT ANY TIME.
E. PRIVILEGES, RIGHTS, USES AND INTERESTS EXCLUDED. IT
IS SPECIFICALLY AGREED AND STIPULATED THAT THE FOLLOWING PRIVILEGES,
RIGHTS, USES AND INTERESTS ARE EXCLUDED FROM THIS ASSIGNMENT:
I. GROUND TRANSPORTATION FOR HIRE. IT IS
UNDERSTOOD, HOWEVER, THAT ASSIGNEE MAY
PROVIDE GROUND TRANSPORTATION FOR ITS
EMPLOYEES AND AVIATION CUSTOMERS AS A
SERVICE EXCEPT THAT SAID SERVICE MAY NOT
BE OFFERED TO THE GENERAL PUBLIC ON A
COMMERCIAL BASIS.
2. WESTERN UNION. IT IS UNDERSTOOD, HOWEVER,
THAT ASSIGNEE MAY USE THE WIRES, LINES AND
SERVICES OF WESTERN UNION FOR ITS OWN PUR-
POSES IN CONNECTION WITH THE ESTABLISHMENT
OF A COMMUNICATIONS SYSTEM AND WEATHER SYSTEM
OR FOR ANY OTHER PURPOSE SO LONG AS ASSIGNEE
DOES NOT ENGAGE COMMERCIALLY IN THE TAKING OR
SENDING OF TELEGRAMS, MONEY ORDERS, ETC.
3. AUTOMOBILE RENTAL SERVICE.
4. NEWS AND SUNDRY SALES EXCEPT FOR THOSE AVIATION
RELATED ITEMS AS MENTIONED HEREINABOVE.
5. ADVERTISING CONCESSIONS EXCEPT THOSE THAT MAY
BE CONDUCTED WITHIN ASSIGNEES HANGARS, OFFICES
AND SHOPS. '
6. BARBER, VALET AND PERSONAL SERVICES.
7. THE SALE OF FOOD AND/OR DRINK EXCEPT FROM
DISPENSING MACHINES LOCATED WITHIN THE HANGARS,
OFFICES AND/OR SHOPS. HOWEVER, NO CAFE OR
CAFETERIA TYPE OF SERVICE SHALL BE OPERATED.
8. THE SALE OF FLIGHT AND/OR TRIP INSURANCE,
9. COMMERCIALLY ENGAGING IN THE BUSINESS OF MAKING
RESERVATIONS FOR HOTELS, MOTELS AND OTHER LODGING.
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ARTICLE IV
CONSTRUCTION OF HANGARS
THE ASSIGNEE HEREIN SPECIFICALLY AGREES TO CONSTRUCT A
MINIMUM OF ONE (1) HANGAR ON THE ASSIGNED PREMISES, AND THAT THE
HANGAR SHALL CONTAIN A MINIMUM OF TWELVE THOUSAND (12,000) SQUARE
FEET OF FLOOR SPACE WITHIN THE OUTER WALLS THEREOF. IT IS AGREED
THAT ASSIGNEE SHALL NOT BE LIMITED TO THE CONSTRUCTION OF ONE (I)
HANGAR, BUT THAT ONE (1) HANGAR CONTAINING THE ABOVE MENTIONE6
MINIMUM SQUARE FEET MUST BE ERECTED AS A CONDITION PRECEDENT AND
PRIOR TO THE TIME THAT ASSIGNEE MAY AVAIL HIMSELF OR ITSELF OF THE
PRIVILEGES, RIGHTS, USES AND INTERESTS SET FORTH HEREINABOVE.
ASSIGNEE FURTHER AGREES TO BEGIN THE CONSTRUCTION OF
THE AFOREMENTIONED HANGAR WITHIN ONE HUNDRED EIGHTY (180) DAYS
AFTER THE DATE OF THE EXECUTION OF THIS ASSIGNMENT AND AGREEMENT
AND, IN THE EVENT OF ASSIGNEE'S FAILURE OR REFUSAL TO BEGIN SUCH
CONSTRUCTION, THEN THIS ASSIGNMENT AND AGREEMENT SHALL EXPIRE AND
SHALL BE OF NO FURTHER FORCE NOR EFFECT, PROVIDED, HOWEVER, THAT
THE TIME MAY BE EXTENDED BY THE CITY, AND PROVIDED FURTHER THAT
IN THE EVENT OF A STRIKE OR ACT OF GOD OUTSIDE THE CONTROL OF
ASSIGNEE DURING SAID PERIOD SO AS TO DELAY ASSIGNEE'S ABILITY
TO PROCEED, THEN SAID TIME SHALL NOT BE COUNTED AS PART OF THE
AFORESAID PERIOD. PROVIDED FURTHER, HOWEVER, THAT IN THE EVENT,
FOR ANY REASON, THAT THE AFOREMENTIONED MINIMUM HANGAR IS NOT CONSTRUCTED
OR UNDER CONSTRUCTION WITHIN TWELVE (12) MONTHS FROM THE DATE OF THE
EXECUTION OF THIS AGREEMENT, THEN THIS AGREEMENT SHALL EXPIRE AND
BECOME NULL AND VOID AND OF NO FURTHER FORCE NOR EFFECT. IT IS
AGREED THATTHE CONSTRUCTION OF ONE (1) HANGAR CONTAINING THE ABOVE
MINIMUM SQUARE FOOTAGE WITHIN THE ASSIGNED PREMISES MARKED AREA "A"
ON THE ATTACHED EXHIBIT "A ", BY ASSIGNEE SHALL BE SUFFICIENT TO
HOLD AREA "A" AND TO ENJOY ALL OF THE AFOVEMENTIONED RIGHTS, USES,
PRIVILEGES AND INTERESTS INCIDENT THERETO.
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ASSIGNEE FURTHER AGREES, PRIOR TO THE CONSTRUCTION OF ANY
HANGAR OR IMPROVEMENT ON THE ASSIGNED PREMISES, TO SUBMIT PLANS AND
SPECIFICATIONS TO THE CITY FOR APPROVAL. THE CITY AGREES TO
IMMEDIATELY REVIEW THE SAID PLANS AND SPECIFICATIONS WITH RESPECT
TO THE GENERAL APPEARANCE OF SAME AND WITH RESPECT TO THE SAFETY AND
TYPE OF CONSTRUCTION PROPOSED AND TO RENDER ITS DECISION WITHIN A
REASONABLE TIME AFTER RECEIPT OF SAID PLANS, AND THE CITY SPECIFICALLY
AGREES NOT TO DISAPPROVE OF SAID PLANS UNLESS SAID DISAPPROVAL IS
FOR SOME REASONABLE REASON. HOWEVER, THE APPROVAL OF SUCH PLANS
SHALL NOT BE CONSIDERED AS AN ADOPTION THEREOF NOR IMPOSE ANY RE-
SPONSIBILITY OR LIABILITY ON THE CITY BY REASON THEREOF.
ARTICLE V
ACCEPTANCE OF PREMISES
ASSIGNEE ACKNOWLEDGES THAT THE PREMISES HAVE BEEN
INSPECTED AND DOES HEREBY AGREE TO AND DOES ACCEPT THE ASSIGNED
PREMISES IN ITS PRESENT PHYSICAL CONDITIONS AND AT THE EXISTING
GROUND LEVEL] AND ASSIGNEE FURTHER AGREES TO PAY THE TOTAL COST OF
DEVELOPING SAID PROPERTY.
ARTICLE VI
TERM
THE TERM OF THIS ASSIGNMENT AND AGREEMENT SHALL BE AS
FmLLOWS:' COMMENCING ON THE DATE OF THE EXECUTION HEREOF AND
TERMINATING ON THE 13TH DAY OF JULY, 1990, PROVIDED, HOWEVER,
ASSIGNEE HAS NOT DEFAULTED IN ANY OF THE TERMS, CONDITIONS AND
PROVISIONS HEREOF.
ARTICLE VII
RENT
ASSIGNEE AGREES TO PAY THE CITY AS RENTAL FOR THE USE
AND OCCUPANCY OF THE ASSIGNED PREMISES AND FOR THE PRIVILEGES,
RIGHTS, USES AND INTERESTS AS ABOVE SET FORTH RENTAL ACCORDING TO
THE FOLLOWING SCHEDULES°
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1. THREE CENTS (3¢) PER SQUARE FOOT PER YEAR FOR THE
AREA COVERED BY HANGARS, SHOPS, OFFICES AND /OR OTHER BUILDINGS.
SUCH PAYMENT SHALL BE FOR A MINIMUM OF 12,000 SQUARE FEET.
2. ONE CENT (1¢) PER SQUARE FOOT PER YEAR FOR THE AREA
WITHIN THE ASSIGNED PREMISES BETWEEN THE BUILDING SET -BACK LINES
WHERE BUILDINGS COULD PERMISSIBLY BE CONSTRUCTED. '
3. THIRTY -THREE AND ONE -THIRD (33 -1/3%) PERCENT OF THE
GROSS INCOME FROM PARKING AND /OR TIEDOWN FACILITIES LOCATED ON ANY
RAMP THAT MAY BE CONSTRUCTED IN THE RAMP AREA, WHICH RAMP IS SHOWN
ON EXHIBIT "A" WHICH IS ATTACHED HERETO.
4. TWO (2¢) CENTS PER GALLON FOR EACH GALLON OF GASOLINE
AND /OR OTHER PROPELLENTS AND FUELS SOLD BY AND THROUGH ASSIGNEE'S
OPERATIONS, EXCEPT SALES TO OR SERVICING OF COMMERCIAL AIRLINE
AIRCRAFT HOLDING VALID OPERATING CONTRACTS ON THE AIRPORT.
5. IN THE EVENT ASSIGNEE DESIRES TO INSTALL STORAGE
TANKS WITHIN THE ASSIGNED PREMISES, THEN THERE SHALL BE NO ADDITIONAL
CHARGE, OTHER THAN THE AFOREMENTIONED GROUND RENTAL, FOR SUCH STORAGE
TANKS. ASSIGNEE AGREES TO SUBMIT ITS PLANS FOR THE INSTALLATION OF
THE STORAGE TANKS TO THE CITY PRIOR TO THE INSTALLATION THEREOF. IN
THE EVENT THAT ASSIGNEE DESIRES TO LOCATE A FUEL STORAGE SITE ON
PROPERTY OUTSIDE THE ASSIGNED PREMISES, ASSIGNEE SHALL PAY A RENTAL
OF ONE CENT (1¢) PER GALLON PER YEAR FOR EACH GALLON OF STORAGE
CAPACITY OF ITS GASOLINE, FUEL AND PROPELLANT STORAGE TANKS. THAT IS,
IF ASSIGNEE DESIRES TO INSTALL STORAGE TANKS OFF THE ASSIGNED PREMISES
FOR THESTOP.AGE OF ONE THOUSAND (7,000) GALLONS OF GASOLINE OR OTHER
FUEL OR PROPELLENT THEN THE RENTALS FOR SUCH GASOLINE STORAGE SHALL BE
COMPUTED ON THE BASIS OF ONE CENT (1¢) PER GALLON FOR THE ONE THOUSAND
(1,000) GALLON STORAGE CAPACITY OF THE TANK FOR A RENTAL OF TEN DOLLARS
($10.00) PER YEAR, WHICH IS AN EXAMPLE ONLY AND THE ACTUAL CAPACITY OF
THE STORAGE TANKS ACTUALLY INSTALLED BY ASSIGNEE SHALL BE USED AS THE
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BASIS FOR DETERMINING THE RENT HEREUNDER. THE PERMISSION TO INSTALL ANY
TANK OFF THE ASSIGNED PREMISES AS WELL AS THE LOCATION OF SUCH FUEL
STORAGE SITE OFF ASSIGNEES PREMISES SHALL BE SUBJECT TO THE CITY'S OPTION
TO GIVE SUCH AGREEMENT AND APPROVAL.
6. AT THE END OF EACH THREE YEAR PERIOD AFTER THE EXECUTION OF
THIS AGREEMENT, EITHER PARTY HERETO SHALL HAVE THE RIGHT AND OPTION TO
REQUEST AN ADJUSTMENT IN THE GROUND RENTAL RATES, THE FLOWAGE FEES AND THE
RENTAL FOR THE FUEL STORAGE TANKS, AS ABOVE SET OUT, WHICH ADJUSTMENT SHALL
BE COMPUTED BY MULTIPLYING SUCH RATE AND FEE BY A FRACTION, THE DENOMINATOR
OF WHICH SHALL BE THE ARITHMETICAL AVERAGE AS OF THE DATE OF THIS AGREEMENT
OF THE INDICES (A) OF THE UNITED STATES BUREAU OF LABOR STATISTICS FOR
HOURLY WAGE RATES OF ALL WORKERS IN MANUFACTURING AND (B) OF ALL COMMODITY
WHOLESALE PRICES, AND THE NUMERATOR OF WHICH SHALL BE THE ARITHMETICAL
AVERAGE OF SAID INDICES (A) AND (B) FOR THE LAST AVAILABLE TWELVE (12)
MONTHLY INDICES IMMEDIATELY PRECEDING THE REQUEST FOR ADJUSTMENT. THIS
PROVISION SHALL BE EFFECTIVE IN THIS MANNER AS LONG AS BOTH INDICES ABOVE
MENTIONED ARE PUBLISHED BY THE UNITED STATES GOVERNMENT IN SUBSTANTIALLY
THE SAME FORM AND BASED ON THE SAME DATA AS AT THE DATE OF THIS AGREEMENT
AND IN THE EVENT OF SUBSTANTIAL CHANGE IN THE FORM AND BASIS OF INDICES,
THIS ADJUSTMENT PROVISION SHALL BE REDESIGNED TO THE MUTUAL SATISFACTION
OF THE PARTIES HERETO. As OF THE DATE OF THIS AGREEMENT, THE UNITED STATES
BUREAU OF LABOR STATISTICS INDEX FOR HOURLY WAGE RATES FOR ALL MANUFACTUR-
ING EMPLOYEES IS AND THE COMMODITY WHOLESALE PRICE INDEX IS
. PROVIDED, HOWEVER, THAT SAID FORMULA MUST RESULT IN A
CHANGE OF AT LEAST 1/4¢ PER UNIT OR NO ADJUSTMENT SHALL BE MADE, AND ALL
ADJUSTMENTS SHALL BE MADE TO THE NEAREST 1/4¢.
THE RENTALS AS SET OUT HEREIN ABOVE SHALL, AS TO THE 1¢ PER
SQUARE FOOT GROUND RENTAL, COMMENCE 90 DAYS FOLLOWING THE DATE OF EXECUTION
OF THIS ASSIGNMENT. THE ADDITIONAL 2¢ MAKING A TOTAL OF 309 PER SQUARE
FOOT FOR AREA OCCUPIED BY BUILDINGS, SHALL COMMENCE WHEN THE ASSIGNEE
-11-
HAS SUBSTANTIALLY COMPLETED THE PLANNED INITIAL HANGAR, OFFICE AND
SHOP IMPROVEMENTS OR WHEN ASSIGNEE BEGINS DOING BUSINESS, WHICHEVER
FIRST OCCURS. IN ORDER TO DETERMINE AND COMPUTE THE GROUND RENTALS,
IMPROVEMENTS CONSTRUCTED UPON THE ASSIGNED PREMISES OR COMMENCEMENT
OF BUSINESS, (WHICHEVER OCCURS FIRST) SHALL INCREASE THE GROUND RENTAL
FROM 1¢ PER SQUARE FOOT PER YEAR TO 3¢ PER SQUARE FOOT PER YEAR ON THE
FIRST DAY OF THE MONTH IMMEDIATELY FOLLOWING. THE RENTALS FOR RIGHT OF
REFUSAL AREA SHALL BEGIN NOT LATER THAN THE DATE OF THE EXERCISE OF THE
RIGHT OF REFUSAL.
THE GROUND RENTALS AS SET OUT HEREINABOVE SHALL BE COMPUTED
ON A MONTHLY BASIS AND BECOME DUE AND PAYABLE ON THE FIRST DAY OF EACH
CALENDAR MONTH THROUGHOUT THE TERM OF THIS ASSIGNMENT. ON THE FIRST
DAY OF THE NEXT CALENDAR MONTH AFTER THE RENTALS BEGIN UNDER THIS ASSIGN-
MENT, ASSIGNEE SHALL PREPARE A REPORT IN WRITING, ON A FORM APPROVED BY
THE CITY, SHOWING THE TOTAL NUMBER OF GALLONS OF GASOLINE, FUELS, AND/OR
OTHER PROPELLENTS SOLD BY ASSIGNEE AND THE TOTAL GROSS RECEIPTS FROM THE
ABOVEMENTIONED APRON DURING THE PRECEDING CALENDAR MONTH AND SHALL SUBMIT
SAID REPORT TO THE CITY, ALONG WITH THE RENTAL TO BE PAID THEREUNDER,
PRIOR TO THE TENTH (10TH) DAY OF SAID CALENDAR MONTH. ASSIGNEE SHALL
SUBMIT A LIKE REPORT AND PAYMENT THEREFOR FOR EACH SUCCEEDING MONTH
DURING THE TERM OF THIS ASSIGNMENT.
ASSIGNEE AGREES TO KEEP FULL AND ACCURATE RECORDS OF ALL
TRANSACTIONS, SALES AND INCOME, BOTH FROM CASH SALES AND CREDIT
SALES, THAT IN ANY WAY CONCERN RENTAL TO THE CITY, AND FURTHER
AGREES THAT ALL BOOKS AND RECORDS COVERING SUCH SALES SHALL BE OPEN
TO INSPECTION BY THE CITY OF CORPUS CHRISTI AT ALL REASONABLE TIMES.
7. THE CITY OF CORPUS CHRISTI HEREBY APPOINTS ITS
AIRPORT MANAGER AS ITS AGENT TO RECEIVE ALL RENTALS AND REPORTS
UNDER THIS AGREEMENT, AND ASSIGNEE HEREBY AGREES TO SUBMIT THE
AFOREMENTIONED REPORTS AND PAYMENTS TO THE AIRPORT MANAGER. IT IS,
HOWEVER, SPECIFICALLY AGREED THAT THE CITY MAY DESIGNATE OTHERS AS
AGENTS TO INSPECT ASSIGNEES BOOKS AND RECORDS, AS AFOVEMENTIONED,
-12-
PROVIDED SUCH INSPECTIONS ARE PERFORMED AT REASONABLE TIMES DURING
WORKING HOURS.
S. IN ADDITION TO ALL OTHER REMEDIES WHICH THE CITY MAY
HAVE TO ENFORCE THE OBLIGATIONS OF ASSIGNEE, THE CITY SHALL HAVE A LIEN
ON ALL PROPERTY OF ASSIGNEE PLACED ON SAID PREMISES FOR ALL MONEYS,
RENTS, SHARES OF GROSS RECEIPTS AND OTHER OBLIGATIONS OF ASSIGNEE.
9. BY THE TERM "TRANSIENT APRON" IS MEANT THAT APRON EAST
OF THE CONTROL TOWER BUILDING APPROXIMATELY TWO HUNDRED EIGHTY (280)
FEET IN WIDTH EXTENDING FROM TAXIWAY "H" SOUTHWARD TO A LINE WHICH IS
THE EASTERN EXTENSION OF THE SOUTH LINE OF THE COMMERCIAL APRON RUNNING
SOUTH OF THE TERMINAL BUILDING AND CONTROL TOWER BUILDING, SAID
TRANSIENT APRON HAVING A LENGTH NORTH AND SOUTH OF APPROXIMATELY
SEVEN HUNDRED FIFTY (750) FEET.
THE TERM "PUBLIC APRON" SHALL INCLUDE, IN ADDITION TO THE
TRANSIENT APRON ABOVE DESCRIBED, THE FOLLOWING AREA:
ALL OF THAT AREA SHOWN ON EXHIBIT "A" AS
"COMMERCIAL APRON" AND BEING AN AREA
APPROXIMATELY 300 FEET IN WIDTH EXTENDING
NORTH AND SOUTH AND EXTENDING EAST AND
WEST A DISTANCE OF APPROXIMATELY 1050
FEET, ALL OF WHICH AREA LIES AS SHOWN ON
EXHIBIT "A" SOUTH OF THE AIRPORT TERMINAL
BUILDING AND AIRPORT CONTROL TOWER BUILDING.
ARTICLE VIII
UNDERTAKINGS OF THE CITY OF CORPUS CHRISTI
THE CITY OF CORPUS CHRISTI, BY ACCEPTANCE OF THIS
ASSIGNMENT, AS NOTED IN WRITING HEREINAFTER, AND AS CONSIDERATION
HEREIN, COVENANTS AND AGREES AS FOLLOWS, TO -WIT:
A. TO OPERATE THE NEW CORPUS CHRISTI MUNICIPAL AIRPORT
AS A PUBLIC AIRPORT DURING THE TERM OF THIS ASSIGNMENT, SUBJECT TO
AND CONSISTENT WITH AND PURSUANT TO THE SPONSORS ASSURANCES GIVEN
BY THE CITY TO THE UNITED STATES GOVERNMENT UNDER THE FEDERAL AIRPORT
ACT, AND SUBJECT TO THE CONDITIONS AND HAPPENINGS CONTAINED IN
ARTICLE X, PARAGRAPH E, OF THIS AGREEMENT.
-13-
B. TO CONSTRUCT AND INSTALL PROPER AND NECESSARY WATER
GAS AND SEWAGE LINES TO A POINT ADJACENT TO THE PREMISES ASSIGNED
HEREIN, SO THAT WATER, GAS AND SEWAGE SERVICE SHALL BE AVAILABLE TO
A POINT IMMEDIATELY ADJACENT TO THE ASSIGNED PREMISES. WATERI GAS
AND SEWAGE LINES WITHIN THE AREA COVERED BY THIS ASSIGNMENT MAY BE
CONNECTED WITH SAID WATERS GAS AND SEWAGE LINES UPON THE SAME BASIS
AS APPLIES TO RESIDENTS WITHIN THE CITY OF CORPUS CHRISTI. ASSIGNEE
SHALL PAY ALL CHARGES FOR WATER, GAS, SEWAGE, ELECTRICITY AND OTHER
PUBLIC UTILITIES SUPPLIED TO ASSIGNEE AND/OR ASSIGNEES PREMISES
DURING THE TERM OF THIS LEASE AS SUCH CHARGES BECOME DUE AND PAYABLE.
ARTICLE IX
UNDERTAKINGS OF ASSIGNEE
THE ASSIGNEE HEREIN, AS ADDITIONAL CONSIDERATION HEREOF
HEREBY COVENANTS AND AGREES AS FOLLOWS TO -WIT:
A. ASSIGNEE AGREES AT ITS OWN COST AND EXPENSES TO
IMPROVE THE ASSIGNED PREMISES BY THE CONSTRUCTION OF HANGARS,
OFFICES, SHOPS AND/OR OTHER IMPROVEMENTS, AS HEREINABOVE MENTIONED,
AND TO MAINTAIN SAID IMPROVEMENTS AND ASSIGNED PREMISES IN A
PRESENTABLE CONDITION CONSISTENT WITH GOOD BUSINESS PRACTICE AND
EQUAL IN APPEARANCE AND CHARACTER TO OTHER SIMILAR IMPROVEMENTS ON
THE AIRPORT.
B. ASSIGNEE AGREES TO CAUSE TO BE REMOVED FROM THE
ASSIGNED PREMISES ALL WASTE, GARBAGE RUBBISH, JUNK, WORN -OUT PARTS
AND OTHER REFUSE, AND AGREES NOT TO DEPOSIT THE SAME OR ALLOW THE
SAME TO ACCUMULATE, EXCEPT TEMPORARILY IN CONNECTION WITH COLLECTION
FOR REMOVAL, ON ANY PART OF THE ASSIGNED PREMISES OR OTHER PROPERTY
LOCATED WITHIN THE AIRPORT SITE, PROVIDED, HOWEVER, THAT THE CITY
MAY PROVIDE GARBAGE SERVICE FOR A REASONABLE FEE IN LINE WITH AND IN
KEEPING WITH THE CHARGES MADE TO COMMERCIAL ESTABLISHMENTS OF A SIMILAR
NATURE. ASSIGNEE SPECIFICALLY AGREES, HOWEVER, TO MAKE ADEQUATE PROVIS-
ION FOR AND TO DISPOSE OF WASTE OILS AND LUBRICANTS AND TO DISPOSE OF
SAME OFF THE AIRPORT PROPERTY. ASSIGNEE SPECIFICALLY AGREES NOT TO
DISPOSE OF SAID WASTE OILS AND LUBRICANTS BY INDUCING SAME IN ANY
QUANTITIES INTO THE AIRPORT SEWAGE SYSTEM.
C. ASSIGNEE AGREES THAT IT OR ITS TENANTS AND SUB - LESSEES WILL
AT ALL TIMES FURNISH GOOD, PROMPT AND EFFICIENT SERVICE ADEQUATE TO MEET
ALL THE DEMANDS FOR SUCH SERVICE AT THE AIRPORT AND TO FURNISH SAID
SERVICES ON A FAIR, EQUAL AND NON- DISCRIMINATORY BASIS TO ALL USERS THERE-
OF, AND TO CHARGE A FAIR, REASONABLE AND NON - DISCRIMINATORY PRICES FOR
EACH UNIT OF SALE OF SERVICE; PROVIDED THAT THE ASSIGNEE OR ITS TENANTS
AND SUB - LESSEES WILL BE ALLOWED TO MAKE REASONABLE AND NON- DISCRIMINATORY
DISCOUNTS, REBATES OR OTHER SIMILAR TYPE OF PRICE REDUCTIONS TO VOLUME
PURCHASERS. PROVIDED, FURTHER, THAT NOTHING HEREIN CONTAINED IS INTENDED
TO NOR SHALL BE CONSTRUED AS VESTING IN ASSIGNOR THE POWER OR AUTHORITY TO
REGULATE ASSIGNEES CHARGES FOR STUDENT TRAINING, AIRCRAFT RENTAL, AIRCRAFT
STORAGE AND AIRCRAFT CHARTER SERVICE AND SERVICES SPECIFICALLY RELATED TO
SUCH SERVICES.
D. THE LESSEE AGREES TO CONSTRUCT AN APRON THE ENTIRE FRONTAGE
OF THE PROPOSED BUILDING AREA FRONTING 140 FEET ON THE PRESENT RAMP. SUCH
CONSTRUCTION WILL BE AT SUCH GRADE AND OF SUCH MATERIAL SO AS TO BE IN
KEEPING AND IN ACCORDANCE WITH PLANS AND SPECIFICATIONS WHICH ARE SUBJECT
TO THE APPROVAL OF THE CITY. SAID CONSTRUCTION SHALL COMMENCE WITHIN 180
DAYS FROM THE DATE OF THIS LEASE AND PROCEED WITH DUE DILIGENCE ALL AT THE
EXPENSE OF THE ASSIGNEE, AT AN ESTIMATED COST OF $15,000.00. THE ASSIGNEE
SHALL BE ENTITLED TO REIMBURSEMENT FOR THE ACTUAL AMOUNT OF SAID CONSTRUC-
TION COST BY CREDITING THE RENTAL AND FLOWAGE FEES WHICH ARE OTHERWISE
PAYABLE UNDER THE TERMS OF THIS ASSIGNMENT UNTIL THE SAID CONSTRUCTION COSTS
(INCLUDING INTEREST, LIMITED HOWEVER TO ACTUAL INTEREST PAID AND FURTHER
LIMITED TO INTEREST AT SIX PERCENT PER ANNUM AND FURTHER LIMITED TO INTEREST
ON CONSTRUCTION COSTS REDUCED BY MONTHLY CREDITS WHICH WOULD OTHERWISE BE
PAYABLE EXCEPT FOR THE RIGHT OF REIMBURSEMENT CONTAINED IN THIS PARAGRAPH)
SHALL HAVE BEEN REIMBURSED TO ASSIGNEE, PROVIDED, HOWEVER, THAT SAID REIM-
BURSEMENT SHALL NOT EXTEND BEYOND 63 MONTHS FROM THE DATE HEREOF. AFTER
SUCH REIMBURSEMENT OF SAID CONSTRUCTION COSTS OR THE EXPIRATION OF 63 MONTHS
-15-
FROM THE DATE HEREOF, WHICHEVER FIRST OCCURS NO FURTHER REIMBURSEMENT
SHALL BE DUE TO ASSIGNEE. CITY WILL MAINTAIN THE RAMP AFTER CONSTRUCTION
BY ASSIGNEE.
ASSIGNEE SHALL NOT USE, SUFFER OR PERMIT ANY PERSON TO USE THE
PREMISES HEREIN ASSIGNED FOR ANY ILLEGAL, IMMORAL OR BAWDY PURPOSES.
ARTICLE X
GENERAL PROVISIONS
A. INDEMNIFICATION. THE ASSIGNOR AND THE CITY OF CORPUS CHRISTI
SHALL STAND INDEMNIFIED BY THE ASSIGNEE AS HEREIN PROVIDED. IT IS EXPRESS-
LY UNDERSTOOD AND AGREED BY AND BETWEEN THE PARTIES HERETO THAT THE ASSIGNEE
HEREIN IS AND SHALL BE DEEMED TO BE AN INDEPENDENT CONTRACTOR AND OPERATOR
RESPONSIBLE TO ALL PARTIES FOR ITS RESPECTIVE ACTS OR OMISSIONS AND FOR
THOSE OF ITS AGENTS SERVANTS, EMPLOYEES, INVITEES, TENANTS AND SUB - LESSEES,
AND THE ASSIGNOR AND THE CITY OF CORPUS CHRISTI SHALL IN NO WAY BE RESPONSIBLE
THEREFOR. IT IS FURTHER AGREED THAT IN THE USE OF THE AIRPORT AND IN
THE MAINTENANCE, ERECTION OR CONSTRUCTION OF ANY IMPROVEMENTS THEREON AND
THE EXERCISE OF ENJOYMENT OF THE PRIVILEGES HEREIN GRANTED, THE ASSIGNEE
AGREES TO INDEMNIFY AND SAVE HARMLESS THE ASSIGNOR AND THE CITY OF CORPUS
CHRISTI FROM ANY AND ALL LOSSES OR CLAIMS FOR DAMAGES THAT MAY PROXIMATELY
RESULT TO THE ASSIGNOR AND /OR THE CITY OF CORPUS CHRISTI FROM ANY NEGLI-
GENCE ON THE PART OF THE ASSIGNEE, ASSIGNEES AGENTS, SERVANTS, EMPLOYEES
CONSTRUCTION CONTRACTORS AND INVITEES, AND FOR THOSE OF ITS TENANTS AND
SUB - LESSEES. THE ASSIGNEE HEREBY AGREES TO CARRY PUBLIC LIABILITY
INSURANCE IN THE MINIMUM SUM OF $501000.00 FOR ONE PERSON AND $100,000.00
FOR ANY ONE ACCIDENT AND IN ADDITION THERETO TO CARRY A MINIMUM OF
$50,000.00 INSURANCE FOR PROPERTY DAMAGE LIABILITY. ALL INSURANCE
SHALL BE CARRIED IN A RESPONSIBLE COMPANY AND SHALLI IF REQUESTED
BY THE CITY NAME THE CITY OF CORPUS CHRISTI AS AN ASSURED. SUCH
POLICY SHALL, IN ADDITION, BE ENDORSED TO PROVIDE FOR CROSS - LIABILITY
BETWEEN THE ASSUREDS. SUCH POLICY SHALL BE IN A FORM SATISFACTORY TO
THE CITY OF CORPUS CHRISTI.
-16-
ALL SAID POLICIES SHALL PROVIDE FOR A MINIMUM OF TEN (10)
DAYS NOTICE TO THE CITY OF CORPUS CHRISTI IN THE EVENT OF CANCELLATION
OR MATERIAL CHANGE IN THE TERMS THEREOF.
B. NOTICES. NOTICES TO ASSIGNOR AND THE CITY OF CORPUS
CHRISTI SHALL BE DEEMED SUFFICIENT IF IN WRITING AND MAILED, POSTAGE
PREPAID, ADDRESSED TO CITY MANAGER, P. 0. Box 1622, CORPUS CHRISTI,
TEXAS, OR TO SUCH OTHER ADDRESS AS MAY HAVE BEEN DESIGNATED IN
WRITING BY THE CITY OF CORPUS CHRISTI FROM TIME TO TIME. NOTICE
TO ASSIGNEE SHALL BE DEEMED SUFFICIENT IF IN WRITING AND MAILED,
POSTAGE PREPAID, ADDRESSED TO ASSIGNEE AT BEEVILLE, TEXAS.
C. TAXES. THE ASSIGNEE AGREES TO PAY ANY AND ALL REAL
AND PERSONAL PROPERTY TAXES LEVIED FROM TIME TO TIME UPON THE
IMPROVEMENTS PLACED UPON THE DEMISED PREMISES.
D. ALL OF THE TERMS COVENANTS AND AGREEMENTS HEREIN
CONTAINED SHALL BE BINDING UPON AND SHALL INURE TO THE BENEFIT OF
SUCCESSORS AND ASSIGNS OF THE RESPECTIVE PARTIES HERETO.
E. DESTRUCTION. IN THE EVENT THAT THE ASSIGNEE'S
IMPROVEMENTS OR THE AIRPORT IS DAMAGED OR DESTROYED BY ACTS OF GOD
OR THROUGH ENEMY ATTACK OR FOR ANY OTHER REASON OUTSIDE THE CONTROL
OF ASSIGNEE AND /OR THE CITY OF CORPUS CHRISTI TO SUCH AN EXTENT
THAT THE AIRPORT CANNOT BE OPERATED AS AN AIRPORT, THEN THIS AGREE-
MENT SHALL TERMINATE AND SHALL NO LONGER BE BINDING ON ANY PARTY
HERETO.
IN THE EVENT THAT THE ASSIGNED PREMISES OR THE ASSIGNEE'S
IMPROVEMENTS OR THE OTHER AIRPORT FACILITIES REASONABLE AND NECESSARY
FOR ASSIGNEE TO CONDUCT ASSIGNEE'S BUSINESS ARE PARTIALLY DESTROYED
OR DAMAGED DUE TO ACTS OF GOD OR OTHER ACTS OUTSIDE THE CONTROL OF
ASSIGNEE AND /OR THE CITY OF CORPUS CHRISTI TO SUCH AN EXTENT THAT
THE ASSIGNED PREMISES MAY NOT ECONOMICALLY BE USED FOR THE USES AND
PURPOSES FOR WHICH ASSIGNED, THEN THIS AGREEMENT AND-ASSIGNMENT SHALL ,
-17-
BE SUSPENDED DURING THE PERIOD OF SUCH PARTIAL DAMAGE OR DESTRUCTION
AND SHALL NOT BEGIN OR RESUME UNTIL THE DAMAGE HAS BEEN REPAIRED.
IT IS EXPRESSLY UNDERSTOOD, HOWEVER, THAT THE CITY OF CORPUS CHRISTI
SHALL DETERMINE AND SHALL BE THE SOLE JUDGE OF THE EXTENT OF THE
DAMAGE OR DESTRUCTION TO THE AIRPORT AND SHALL HAVE AN OPTION TO
EITHER DECLARE THIS LEASE TERMINATED OR SUSPENDED OR TO REPAIR
THE AIRPORT FACILITIES OR IN CASE OF DAMAGE OR DESTRUCTION TO ASSIGNEE S
IMPROVEMENTS, TO EITHER DECLARE THE LEASE TERMINATED, SUSPENDED OR TO
REQUIRE ASSIGNEE TO REPAIR HIS IMPROVEMENTSf AND FIX THE TIME WITHIN
WHICH SUCH REPAIRS SHALL BE MADE.
F. SUBORDINATION. THIS ASSIGNMENT AND AGREEMENT SHALL BE
SUBORDINATE TO THE PROVISIONS OF ANY EXISTING,OR FUTURE AGREEMENT
BETWEEN THE CITY OF CORPUS CHRISTI AND THE UNITED STATES RELATIVE TO
THE OPERATION OR MAINTENANCE OF THE AIRPORT, THE EXECUTION OF WHICH
HAS BEEW OR MAY BE REQUIRED AS A CONDITION TO THE EXPENDITURE OF
FEDERAL FUNDS FOR THE DEVELOPMENT OF THE AIRPORT. SHOULD THE EFFECT
OF SUCH AGREEMENT WITH THE UNITED STATES BE TO TAKE ANY OF THE
PREMISES UNDER THIS ASSIGNMENT OUT FROM UNDER THE CONTROL OF THE
CITY OF CORPUS CHRISTI OR TO SUBSTANTIALLY DESTROY THE COMMERCIAL
VALUE OF THE ASSIGNED PREMISES, THEN ASSIGNOR MUST PROVIDE ADEQUATE,
PREMISES TO ASSIGNEE OR THIS AGREEMENT SHALL TERMINATE AND BE NO
LONGER IN FORCE.
G. TERMINATION. THIS LEASE SHALL TERMINATE AT THE END OF THE
PERIOD SET FORTH IN ARTICLE VI HEREINABOVE, AND ASSIGNEE SHALL HAVE NO
FURTHER RIGHT OR INTEREST IN ANY OF THE ASSIGNED PREMISES OR IN ANY OF THE
PRIVILEGES, RIGHTS, USES OR OTHER INTERESTS CONTAINED IN THIS AGREEMENT,
AND ASSIGNEE AGREES TO VACATE AND TO REMOVE ALL IMPROVEMENTS AND EQUIP-
MENT PLACED THEREON BY ASSIGNEE, UNLESS ASSIGNEE AND THE CITY RE- NEGOTIATE
SAID ASSIGNMENT AND ENTER INTO A MUTUALLY SATISFACTORY ASSIGNMENT OR LEASE
EXTENDING THE TERM HEREOF. ASSIGNEE SHALL HAVE ONE HUNDRED TWENTY (120)
DAYS WITHIN WHICH TO REMOVE ASSIGNEE'S EQUIPMENT AND PFRSONAL PROPERTY,
-1a-
f
AND IN THE EVENT,ASSIGNEE FAILS TO DO SO, THE SAME SHALL WORK AS AN ABAN-
DONMENT AND TITLE SHALL PASS TO THE CITY OF CORPUS CHRISTI, OR THE CITY
OF CORPUS CHRISTI MAY REMOVE SAID IMPROVEMENTS AND ASSIGNEE AGREES TO
REIMBURSE THE CITY OF CORPUS CHRISTI FOR ITS EXPENSE.
H. CANCELLATION. DEFAULT OF PAYMENT OF ANY OF THE RENTALS
PROVIDED FOR HEREINABOVE SHALL GIVE ASSIGNOR AND/OR THE CITY OF
,CORPUS CHRISTI THE RIGHT TO TERMINATE THIS AGREEMENT AT ANY TIME 1
AFTER THIRTY %(30) DAYS-NOTICE IN WRITING HAS BEEN GIVEN TO ASSIGNEE,
UNLESS WITHIN SAID TIME THE ASSIGNEE HAS FULLY COMPLIED WITH THE RENTAL
PROVISIONS.
DEFAULT OF ANY OF THE OTHER AGREEMENTS ON THE PART OF ASSIGNEE
SHALL LIKEWISE GIVE ASSIGNOR AND/OR THE CITY OF CORPUS CHRISTI THE RIGHT
TO TERMINATE THIS AGREEMENT AT ANY TIME AFTER THIRTY (30) DAYS NOTICE
IN WRITING HAS BEEN GIVEN ASSIGNEE, UNLESS WITHIN SAID TIME ASSIGNEE HAS
FULLY COMPLIED WITH OR CORRECTED THE CONDITION, PROVIDED, HOWEVER, THAT
ASSIGNOR AND/OR THE CITY OF CORPUS CHRISTI AGREE TO INCLUDE IN THIS
NOTICE A STATEMENT WITH RESPECT TO THE ARTICLE, AGREEMENT OR CONDITION
OF WHICH ASSIGNOR AND/OR THE CITY OF CORPUS CHRISTI CLAIM THAT ASSIGNEE
IS IN DEFAULT.
ARTICLE XI
TRANSFER OF ASSIGNMENT
THE WRITEEN AUTHORITY OF THE CITY OF CORPUS CHRISTI SHALL
BE OBTAINED BY ASSIGNEE PRIOR TO ANY SALE, ASSIGNMENT, TRANSFER OR
SUB - ASSIGNMENT OF THIS ASSIGNMENT AND AGREEMENT. IN THE EVENT THAT'
ASSIGNEE BORROWS MONEY OR OTHERWISE FINANCES THE IMPROVEMENTS TO BE
CONSTRUCTED HEREUNDER, AND IN THE EVENT THAT IT BECOMES NECESSARY
FOR ANY PERSON, PERSONS, COMPANY OR CORPORATION THAT LOANED OR OTHER -
., WISE FINANCED OR GUARANTEED PAYMENT OF SAID CONSTRUCTION FINANCING
TO TAKE OVER ASSIGNEES IMPROVEMENTS, BECAUSE OF ASSIGNEES FAILURE
OR REFUSAL OR INABILITY TO PAY, SAID PERSON, PERSONS, COMPANY OR
CORPORATION MAY CONTINUE TO OPERATE THE FIXED BASE AVIATION OPERA-
TIONS CONDUCTED BY ASSIGNEE WITH THE SAME PRIVILEGES, USES, RIGHTS,
INTERESTS AND OBLIGATIONS AS HEREIN CONVEYED AND IMPOSED UPON ASSIGNEE,
PROVIDED ALL OBLIGATIONS OF ASSIGNEE ARE MET AND ALL PAYMENTS OWING BE
PAID UP TO A CURRENT AND NON- DELINQUENT STATUS.
EXECUTED IN TRIPLICATE ON THIS oar OF ,
1964.
ASSIGNEE:
ATTEST: CORPUS CHRISTI BANK & TRUST
COMPANY, TRUSTEE
CASHIER BY
ACCEPTED AND APPROVED:
CITY OF CORPUS CHRISTI, TEXAS
ATTEST:
BY
CITY MANAGER
CITY SECRETARY
APPROVED AS TO LEGAL FORM THIS
DAY OF , 1964:
ITY ATTORNEY
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CORPUS CHRISTI, TEXAS
p"5 OAY OF 19)
TO THE MEMBERS OF THE CITY COUNCIL w
CORPUS CHRISTI, TEXAS
FOR THE 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 ND ORDINANCE -OR
RESOLUTION SHALL BE PASSED FINALLY ON THE DATE IT IS 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 INTRO -
DUCED, OR AT THE PRESENT MEETING OF THE CITY COUNCIL.
X
RESPECTFULLY,
f
MAYOtECITY �OFCORPUS
CHR E
THE CHARTER RULE WAS SUSPENDED BY THE FOLLOWING VOTE:
JAMES L. BARNARD
,
JAMES H. YOUNG
JACK R. BLACKMON
JOSE R. DELEON
• M. P. MALDONADO
y 7_ LkJ ;"1'.., „t. v '.•r:.i•...'k.. ' ♦S, _ ,v s " .:
.
..' •• .. W. J. ROBERTS '
• W. H. WALLACE, JR. .`
THE ABOVE ORDINANCE WAS PASSED BY THE FOLLOW& VOTE:
r
,,,,,R_„„�t;r_.:i ?° -•-- ...... ".- ^__-•. _.: .. _.� �... JAMES ^L.TBARNARD�
JAMES H. "YOUNG
JACK R. BLACKMON -
JOSE R. DELEON _
,. �._ ... _e.._... _ .,. ... _ ... M. P. MALDONADO
W. J.,ROBERTS
W. H. WALLACE, JR. >s
i