HomeMy WebLinkAbout08033 ORD - 05/25/1966i
AN ORDINANCE
AUTHORIZING AND DIRECTIM THE CITY MANAGER, FOR AND
ON BEHALF OF THE CITY OF CORPUS CHRISTI, TO ACCEPT
AND APPROVE AN ASSIGNMENT AGREEMENT BETWEEN THE CARPUS
CHRISTI BANK AND TRUST COMPANY TRUSTEE AND ROGER L.
GAULT DBA GAULT AVIATION COVERING A COMMERCIAL HANGAR
AND FIXED BASE AVIATION LEASE PLOT ON THE CORPUS
CHRISTI INTERNATIONAL.AIRPORT, A COPY OF SAID ASSIGNMENT
AGREEMENT BEING ATTACHED 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. THAT THE CITY MANAGER, FOR AND ON BEHALF OF THE CITY
OF CORPUS CHRISTI, BE, AND HE IS HEREBY, AUTHORIZED AND DIRECTED TO ACCEPT
AND APPROVE AN ASSIGNMENT AGREEMENT BETWEEN THE CORPUS CHRISTI BANK AND TRUST
COMPANY, TRUSTEE, AND ROGER L. GAULT DBA GAULT AVIATION, COVERING A COMMERCIAL
HANGAR AND FIXED BASE AVIATION LEASE PLOT ON THE CORPUS CHRISTI INTERNATIONAL
AIRPORT, A COPY OF SAID ASSIGNMENT AGREEMENT BEING ATTACHED HERETO AND MADE
A PART HEREOF.
SECTION 2. THE NECESSITY FOR IMMEDIATE APPROVAL BY THE CITY OF
THE PROPOSED ASSIGNMENT OF LEASE, WHICH ASSIGNMENT IS MADE BY AND BETWEEN
THE CORPUS CHRISTI BANK AND TRUST COMPANY, TRUSTEE, AND ASSIGNEE, ROGER L.
GAULT DBA GAULT AVIATION, 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 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, AND
HAVING REQUESTED THE SUSPENSION OF THE 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�p Y OF MAY, 1966.
ATTE
� I
CJ SECRET
APPROVED A 0 LEGAL FO MA
IS THE CITY OF CORPUS CHRISTI, TEXAS 04L
DAY OF MAY, 66:
CITY AT4ORN'Y
8033
-120/66
•
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, TRUSTEE, HEREINAFTER REFERRED TO AS ASSIGNOR, AND ROGER L.
GAULT DBA GAULT AVIATION, OF THE COUNTY OF NUECES, STATE OF TEXAS, HEREIN-
AFTER REFERRED TO AS ASSIGNEE,
W I T N E S S E T H_
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 NEW 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 29, 1959; 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 PUBLICS AND
WHEREAS, ASSIGNEE PROPOSES TO ENGAGE IN COMMERCIAL HANGAR
AND FIXED BASE AVIATION OPERATIONS, AS HEREINAFTER DEFINED, AT THE
NEW CORPUS CHRISTI MUNICIPAL AIRPORTS 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 HEREINAFTER, TOGETHER WITH THOSE PRIVILEGES,
•
RIGHTS, USES AMD,INTERESTS INCIDENT THERETO, AS HEREINAFTER SET
OUTJ 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 DUTI
NOW, THEREFORE, IN CONSIDERATION OF THE PREMISES AND FOR
AND IN CONSIDERATION OF THE CHARGES, FEES, RENTALS, COVENANTS AND
AGREEMEyTS CONTAINED HEREIN, THE PARTIES HERETO DO HEREBY AGREE AS
FOLLOWS%
ARTICLE 1
RIGHT TO ASSIGN
THE CITY OF CORPUS CHRISTI, A MUNICIPAL CORPORATION,
SITUATED IN Nu ECES 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 01' THE TERMS AND CONDITIONS
SET OUT HEREIN AMD 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
r
SET FORTH HEREIN.
ARTICLE II
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
-2-
BASE AVIATION OPERATIONS LOCATED GENERALLY ON THE EAST 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 13 MORE PARTICULARLY DESCRIBED BY METES
AND BOUNDS AS FOLLOWS:
BEGINNING AT THE MOST NORTHEASTERN CORNER OF THE AREA
LEASED BY ASSIGNMENT TO ROGER L. GAULT DBA GAULT AVIATION
AND GULF OIL CORPORATIONS FOR A PLACE OF BEGINNING;
THENCE WEST CONTINUING WITH THE NORTHERNMOST BOUNDARY
OF THE SAID LEASED AREA FOR A DISTANCE OF 297.87 FEET TO A
POINT AT THE NORTHWEST CORNER OF THE SAID LEASE PLOT;
THENCE AT A RIGHT ANGLE A DISTANCE OF 250 FEET TO A
POINT FOR THE NORTHWEST CORNER;
THENCE AT A RIGHT ANGLE 297.87 FEET EAST TO A POINT
FOR THE NORTHEAST CORNER;
THENCE AT A RIGHT ANGLE SOUTH 250 FEET TO THE PLACE
OF BEGINNING.
r
-3-
PRIVILEGES RIGH ARTICLE
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
°5-
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.
2• 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 TO 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, PUOLICA-
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
i
OTHERWISE INSTRUCTING FLYING AND AIRCRAFT MECHANICS.
7• THE ASSIGNEE HEREIN SHALL BE ENTITLED TO PLACE AND
ERECT SIGNS AND ADVERTISING MATERIAL WITHIN THEtHANGARS, 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
m�
1
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:
1. GROUND TRANSPORTATION FOR HIRE. IT IS
UNDERSTOOD, HOWEVER, THAT ASSIGNEE MAY
PROVIDE GROUND TRANSPORTATION FOR ITS
EMPLOY € €S AND AVIATION CUSTOMERS AS A
bER "t 99C€PT THAT @AID 69NVI69 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 HEREINASOVE.
5• ADVERTISING CONCESSIONS EXCEPT THOSE THAT MAY
BE CONDUCTED WITHIN ASSIGNEE'S 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.
°7-
•
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, OR PAY AS IF BUILT.
IT IS AGREED THAT ASSIGNEE SHALL NOT BE LIMITED TO THE CONSTRUCTION OF ONE �'I}
HANGAR, BUT THAT ONE (1) HANGAR CONTAINING THE ABOVE MENTIONED 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 XftEXXNDN )04XN'EO7M)6')8LDCpcXfXft FIVE (5) YEARS
AFTER THE DATE OF THE EXECUTION OF THIS ASSIGNMENT AND AGREEMENT
AND, IN THE EVENT OF ASSIGNEES 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 CON-
S ix (6) YEARS
STRUCTED OR UNDER CONSTRUCTION WITHIN /lRX't6X`kRiXNWNRNA FROM THE DATE
OF THE EXECUTION OF THIS AGREEMENT, THEN THIS AGREEMENT SHALL EXPIRE
AND BECOME NULL AND VOID AND OF NO FURTHER FORCF, NOR EFFECT. IT IS
AGREED THAT THE 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 ABOVEMENTIONED RIGHTS, USES,
PRIVILEGES AND INTERESTS INCIDENT THERETO.
•
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 SAFE 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 SEEN
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 A®REES TO PAY THE TOTAL COST OF
DEVELOPING SAID PROPERTY.
ARTICLE VI
TERM
THE TERM OF THIS ASSIGNMENT AND AGREEMENT SHALL BE AS
FOLLOWS9: COMMENCING ON THE DATE OF THE EXZCUTION 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
--LENT
1
As 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%
-9-
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 .H ERETO.
4. THREE (3¢) CENTS PER GALLON FOR EACH GALLON OF GASOLINE AND /OR
OTHER PROPELLANTS 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. AFTER A PERIOD OF TWELVE YEARS FROM THE COM-
PLETION DATE OF THE RAMP TO BE CONSTRUCTED BY THE CITY AS DESCRIBED IN
ARTICLE VIII PARAGRAPH C, UNLESS OTHERWISE AGREED BETWEEN THE ASSIGNEE AND
THE CITY, THE FLOWAGE FEE OF THREE (3¢) CENTS PER GALLON PROVIDED IN THE
PRECEDING SENTENCE SHALL AUTOMATICALLY BE REDUCED TO TWO 2
( 0) CENTS
PER GALLON FOR THE BALANCE OF THE TERM OF THIS LEASE.
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 `
i
THE EVENT THAT ASSIGNEE DESIRES TO LOCATE A FUEL STORAGE SITE ON
r
PROPERTY OUTSIDE THE ASSIGNED PREMISES, ASSIGNEE SHALL PAY A RENTAL 1
OF ONE CENT (1¢) PER GALLON PER YEAR FOR EACH GALLON OF STORAGE
i
CAPACITY OF ITS GASOLINE, FUEL AND PROPELLANT STORAGE TANKS. THAT IS, f
i
IF ASSIGNEE DESIRES TO INSTALL STORAGE TANKS OFF THE ASSIGNED PREMISES
FOR THE STORAGE OF ONE THOUSAND (1,000) GALLONS OF GASOLINE OR OTHER
FUEL OR PROPELLANT 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
-10-
v
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 CITYIS 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 IN PER UNIT OR NO ADJUSTMENT SHALL BE MADE, AND ALL
ADJUSTMENTS SHALL BE MADE TO THE NEAREST 1/40.1
THE RENTALS AS SET OUT HEREIN ABOVE SHALL, AS TO THE 10 PER
SQUARE FOOT GROUND RENTAL, COMMENCE 90 DAYS FOLLOWING THE DATE OF EXECUTION
OF THIS ASSIGNMENT. THE ADDITIONAL 20 (MAKING A TOTAL OF 30) PER SQUARE
FOOT FOR AREA OCCUPIED BY BUILDINGS, SHALL COMMENCE WHEN THE ASSIGNEE
am
b
HAS SUBSTANTIALLY COMPLETED THE PLANNED INITIAL HANGAR, OFFICE AND SHOP
IMPROVEMENTS OR WHEN ASSIGNEE BEGINS DOING BUSINESS OR WHEN CITY COMPLETES
THE RAMPS TO BE CONSTRUCTED BY CITY, AS PROVIDED IN ARTICLE VII HEREOF,
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
ONE CENT (1¢) PER SQUARE FOOT PER YEAR TO THREE CENTS
(30) PER SQUARE FOOT
PER YEAR ON THE FIRST DAY OF THE MONTH IMMEDIATELY FOLLOWING.
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 ASSIGNMENT,
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 PRO-
PELLANTS SOLD BY ASSIGNEE AND THE TOTAL GROSS RECEIPTS FROM THE ABOVE -
MENTIONED 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 (IOTH) DAY OF SAID CALENDAR MONTH. ASSIGNEE SHALL SUBMIT A
LIKE REPORT AND PAYMENT THEREFOR EACH SUCEEDING 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 AGREE-
MENT, 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
-12-
AND RECORDS1 AS ABOVEMENTIONED, PROVIDED SUCH INSPECTIONS ARE PERFORMED
AT REASONABLE TIMES DURING WORKING HOURS.
$• IN ADDITION TO ALL OTHER REMEDIES WHICH THE CITY MAY HAVE
TO ENFORCE THE OBLIGATIONS OF ASSIGNEES 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 BUILDINGS SAID TRANSIENT APRON HAVING
A LENGTH NORTH AND SOUTH OF APPROXIMATELY SEVEN HUNDRED FIFTY (75 0 FEET.
)
THE TERM "PUBLIC APRON" SHALL INCLUDES IN ADDITION TO THE
TRAMENT APRON A® ®V€ D €MI D €D) THE FOLLOWING ARM
ALL OF THAT AREA SHOWN ON EXHIBIT "A" A "
APRON" AND BEING AN AREA APPROXIMATELY 300C FEET RINAL
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 - CORPUS CHRISTI
THE CITY OF CORPUS CHRISTI BY ACCEPTANCE OF THIS ASSIGNMENT
AS NOTED IN WRITING HEREINAFTER AND AS CONSIDERATION HEREINj 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 ASSIGNMENTS SUBJECT TO AND CONSISTENT
WITH AND PURSUANT TO THE SPONSORS ASSURANCES GIVEN BY THE CITY TO THE UNITED
STATES GOVERNMENT UNDER THE FEDERAL AIRPORT ACTS AND SUBJECT TO THE CONDITIONS I
AND HAPPENINGS CONTAINED IN ARTICLE X, PARAGRAPH Ey OF THIS AGREEMENT.
I
-13-
B. TO CONSTRUCT AND INSTALL PROPER AND NECESSARY WATER
GAS AND SEWAGE LINES TO A POINT ADJACENT TO THE PREMISES ASSIGNED
MEREINp SO THAT WATER, GAS AND SEWAGE SERVICE SHALL BE AVAILABLE TO
A POINT IMMEDIATELY ADJACENT TO THE ASSIGNED PREMISES. WATERS 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 TAY 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.
C• SUBJECT TO AGREEMENT OF PARTICIPATION IN THE COST BY F.A.A.
THE CITY OBLIGATES ITSELF TO CONSTRUCT A RAMP 190' X 250' EXTENDING THE
RAMP ON THE AREA LEASED SOUTH OF THE PREMISES HEREIN LEASED SAID EXTEN-
SION TO BE IN A NORTHERLY DIRECTIONS WITH CONSTRUCTION TO BEGIN ON OR
BEFORE 180 DAYS FROM THE EXECUTION OF THIS ASSIGNMENT.
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
P
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 WASTES GARBAGE RUBBISH, JUNKS WORN -OUT PARTS
AND OTHER REFUSES AND AGREES NOT TO DEPOSIT THE SAME OR ALLOW THE
-A-
•
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 PROVI-
SION 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
THEREOF, AND TO CHARGE A FAIR, REASONABLE AND NON - DISCRIMINATORY
PRICE FOR EACH UNIT OF SALE OR 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 SERVICE.
ASSIGNEE SHALL NOT USE, SUFFER OR PERMIT ANY PERSON TO
USE THE PREMISES HEREIN ASSIGNED FOR ANY ILLEGAL, IMMORAL OR BAWDY
PURPOSES. a
-�5-
•
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 EXPRESSLY UNDERSTOOD AND AGREED BY AND BETWEEN THE PARTIES
HERETO THAT THE ASSIGNEE HEREIN IS AND SHALL BE DEEMED TO BE AN INDE-
PENDENT- .CONTRACTOR AND OPERATOR RESPONSIBLE TO ALL PARTIES FOR ITS
RESPECTIVE ACTS OR OMISSIONS AND FOR THOSE OF ITS AGENTS, SERVANTS,
i
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
41AT MAY PROXIMATELY RESULT TO THE ASSIGNOR AND/OR THE CITY OF CORPUS
CHRISTI FROM ANY NEGLIGENCE ON THE PART OF THE ASSIGNEE, ASSIGNEE'S
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 $50,000.00
FOR ONE PERSON AND $1001000.00 FOR ANY ONE ACCIDENT AND IN ADDITION
THERETO TO CARRY A MINIMUM OF $50,000.00 INSURANCE FOR PROPERTY
DAMAGE LIABILITY. ALL INSURANCE SHALL BE CARRIED IN A RESPONSIBLE
COMPANY AND SHALL, IF REQUESTED BY THE CITY, NAME THE CITY OF CORPUS
CHRISTI AS AN ASSURED. SUCH POLICY SHALL, IN ADDITION, BE ENDORSED
TO PROVIDE FOR CROSS - LIABILITY BETWEEN THE ASSURED$. 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
1
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 7622, 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 CORPUS CHRISTI, 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
°� 7-
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 IMPROVEMENTS, 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 BEEN 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 RENEGOTIATE
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 ASSIGNEES EQUIPMENT AND PERSONAL PROPERTY,
-18-
•
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 T+I4RTY (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
18 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 ASSIGNE418 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,
-19-
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.
196 EXECUTED IN TRIPLICATE ON THIS
DAY OF �
1+•
ASSIGNEE:
ATTEST: CORPUS CHRISTI BANK & TRUST
COMPANY, TRUSTEE
CASHIER BY
i
ACCEPTED AND APPROVED:
ATTEST: CITY OF CORPUS CHRISTI, TEXAS
BY
.CITY SECRETARY CITY MANAGER
APPROVED AS TO LEGAL FORM THIS
DAY OF ' 196:
CITY ATTORNEY
t
.
CORPUS CHRISTIP TEXAS
a DAY OF , 9�.
TO THE WMBERS OF THE CITY COUNCIL
CORPUS CHRISTI, TEXAS
FOR THE REASONS SET FORTH IN THE EMERGENCY CLAUSE OF THE FORE-
GOING ORDINANCEI 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 IS INTRODUCED AND THAT
SUCH ORDINANCE OR RESOLUTION SHALL BE READ AT THREE MEETINGS OF THE CITY
COUNCILS 11 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.
RESPECTFULLY,
mpI
MAYOR
THE CITY OF CORPUS CHRISTI, TEXAS
THE CHARTER RULE WAS SUSPENDED BY THE FOLLOWING VOTE:
DR. MCIVER FURMAN
JACK BLACKMON
PATRICK J. DUNNE
DR. P. JIMENEZ, JR.
KEN MCDANIEL
RONNIE SIZEMORE
WM. H. WALLACE
THE ABOVE ORDINANCE WAS PASSED BY THE FOLLOWING VOTE:
DR. MCIVER FURMAN
JACK BLACKMON
PATRICK J. DUNNE
DR. P. JIMENEZ, JR.
KEN MCDANIEL
RONNIE SIZEMORE
Wm. H. WALLACE