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HomeMy WebLinkAbout08231 ORD - 11/02/1966vMP:11 12166 TEXAS: 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 AL KRAKOW DBA CORPUS CHRISTI AVIATION OF SAN PATRICIO COUNTY, TEXAS, COVERING A COMMERCIAL HANGAR AND FIXED BASE AVIATION LEASE PLOT ON CORPUS CHRISTI INTERNATIONAL AIRPORT SITE, WHICH PLOT IS AN AREA 860' x 200' AND BEING APPROXIMATELY 3.9 ACRES, AS SHOWN AND MORE PARTICU- LARLY DESCRIBED ON EXHIBIT "A ", 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 CORPUS CHRISTI, i 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 AL KRAKOW DBA CORPUS CHRISTI AVIATION, OF SAN PATRICIO COUNTY, TEXAS, OF A COMMERCIAL HANGAR AND FIXED BASE AVIATION LEASE PLOT, WHICH PLOT IS AN AREA 860' X 200' AND BEING APPROXIMATELY 3.9 ACRES, AS SHOWN AND MORE PARTICULARLY DESCRIBED ON EXHIBIT "A ", A COPY OF SAID ASSIGNMENT AGREEMENT IS 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 BETWEEN THE CORPUS CHRISTI BANK & TRUST COMPANY, TRUSTEE, AND ASSIGNEE, AL KRAKOW, DBA CORPUS CHRISTI AVIATION, SO AS TO ENABLE THE LESSEE TO BEGIN PREPARA- TION 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 RE50LUTION SHALL BE READ AT THREE SEVERAL MEETINGS OF THE CITY COUNCIL, AND THE MAYOR HAVING DECLARED SUCH EMERGENCY AND NECESSITY TO EXIST, HAVING REQUESTED THE SUSPENSION OF SAID CHARTER RULE AND THAT THIS ORDINANCE BE PASSED FINALLY ON THE DATE OF ITS INTRODUCTION AND TAKE EFFECT AND BE IN 8231 1 S FULL FORCE AND EFFECT FROM AND AFTER ITS PASSAGE, IT IS ACCORDINGLY SO ORDAINED, THIS THE j DAY OF NOVEMBER, 1966. ATTEST: r�o•Iem THE CITY OF CORPUS CHRISTI, TEXAS GI TYVSECRETARY I APPROVED AS TO GAL FORM THIS _DAY OF NOVEMBER, 1966: 11 0 CITY A'rTORINE 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 AL KRAKOW, D /S /A CORPUS CHRISTI AVIATION, OF THE COUNTY OF SAN PATRICIO, STATE OF TEXAS, HEREINAFTER 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 HANGER 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"j WHICH 15 ATTACHED HERETO AND MADE A PART HEREOF, AS MORE PARTICULARLY DESCRIBED HEREINAFTER, TOGETHER WITH THOSE PRIVILEGES, RIGHTS., USES AND INTERESTS INCIDENT THERETO, AS HEREINAFTER SET OUTb AND WHEREAS, AssIGNEE DESIRES TO OBTAIN AND AVAIL ITSELF DF SAID AREA., AS HEREINAFTER DESCRIBED., AND OF THOSE PRIVILEGES, RIGHTS, USES AND INTERESTS INCIDENT THERETO, AS HEREINAFTER SET OUTS 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 FOLLOWSS ARTICLE 1 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 AssIONOR AND ASSIGNEE OR THAT AssIONOn, CORPUS CHRisil BANK & TRUST COMPANY, DOD NOT HAVE LEGAL AUTHORITY TO ENTER INTO THIS ASSIGNMENT, THEN THE CITY AGREES TO TAME 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 HEREON, ART!CLE 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 DESCRIBEO., AN AREA DESIGNATED FOR COMMERCIAL HANGAR AND FIXED -2- BASE AVIATION OPERATIONS LOCATED GENERALLY ON THE NORTHEAST SIDE OF THE TERMINAL BUILDING WITHIN THE AREA AND ALL AS SHOWN AND DESCRIBED ON THE ATTACHED DRAWING MARKED EXHIBIT "A ", WHICH 15 MADE A PART HEREOF FOR ALL INTENTS AND PURPOSES AS IF COPIED VERBATIM HEREIN, SAID AREA HEREBY LEASED BEING A TRACT OF LAND EXTENDING 860 FEET EAST AND WEST AND 200 FEET NORTH AND SOUTH AND COMPRISING 172,000 SQUARE FEET OR APPROXIMATELY 3.9 ACRES. -3- • 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: 1. 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 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, PUBLICA- TIONS, CAPS, SUNGLASSES, COMPUTERS, RADIOS, AND OTHER AVIATION RELATED ITEMS NORMALLY SOLD AND DISPENSED BY COMMERCIAL FIXED BASED HANGAR OPERATORS. E). 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 irl • • 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. Z. 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 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. S. THE SALE OF FLIGHT AND/OR TRIP INSURANCE, 9. COMMERCIALLY ENGAGING IN THE BUSINESS OF MAKING RESERVATIONS FOR HOTELS, MOTELS AND OTHER LODGING. �70 I• • 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 INCLUDING OFFICE AND SHOPS SHALL CONTAIN A MINIMUM OF SIXTEEN THOUSAND EIGHT HUNDRED (16,800) SQUARE FEET OF FLOOR SPACE WITHIN THE OUTER WALLS THEREOF. IT IS AGREED THAT ASSIGNEE SHALL NOT BE LIMITED TO THE CON- STRUCTION OF ONE (1) 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 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 CONSTRUCTIONS THEN THIS ASSIGNMENT AND AGREEMENT SHALL EXPIRE AND SHALL BE OF NO FURTHER FORCE NOR EFFECTS 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 PROCEEDS THEN SAID TIME SHALL NOT BE COUNTED AS PART OF THE AFORESAID PERIOD. PROVIDED FURTHER, HOWEVER, THAT IN THE EVENTS 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 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. 9.3 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 F ®LLOWS.� 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 SCHEDULESS m9m 1. THREE AND ONE - FOURTH CENTS (3 1/40) 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 16,500 SQUARE FEET. Z. ONE CENT (10) PER SQUARE FOOT PER YEAR FOR THE AREA WITHIN THE ASSIGNED PREMISES NOT COVERED BY HANGARS] SHOPS, OFFICES AND /OR OTHER BUILDINGS. 3. THIRTY -THREE AND ONE -THIRD (33 1130) 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. THREE (3¢) CENTS PER GALLON FOR EACH GALLON OF GASOLINE AND/OR OTHER PROPELLANTS AND FUELS SOLD BY AND THROUGH ASSIGNEES OPERA- TIONS, 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 (10) PER GALLON PER YEAR FOR EACH GALLON OF STORAGE CAPACITY OF ITS GASOLINE, FUEL AND PROPELLANT STORAGE TANKS. THAT ISM 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 YEARS WHICH IS AN EXAMPLE ONLY AND THE ACTUAL CAPACITY OF THE STORAGE TANKS ACTUALLY INSTALLED BY ASSIGNEE SHALL BE USED AS THE 50 Y 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 AGREEMENTS EITHER PARTY HERETO SHALL HAVE THE RIGHT AND OPTION TO REQUEST AN ADJUSTMENT IN THEGROUND RENTAL RATES THE FLOWAGE FEES AND THE 1 RENTAL FOR THE FUEL STORAGE TANKS I AS ABOVE SET OUTS WHICH ADJUSTMENT SHALL BE COMPUTED BY MULTIPLYING SUCH RATE AND FEE BY A FRACTIONS 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 (8) 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 1/40 PER UNIT OR NO ADJUSTMENT SHALL BE MADE, AND ALL ADJUSTMENTS SHALL BE MADE TO THE NEAREST 1/40. THE RENTALS AS SET OUT HEREIN ABOVE SHALL AS TO THE I�A PER SQUARE FOOT GROUND RENTAL, COMMENCE 90 DAYS FOLLOWING THE DATE OF EXECUTION OF THIS ASSIGNMENT. THE ADDITIONAL Z -1 /Y¢ MAKING A TOTAL OF 3 -I/4¢) PER SQUARE FOOT FOR AREA.000UPIED BY BUILDINGS SHALL COMMENCE WHEN THE ASSIGNEE 4 HAS SUBSTANTIALLY COMPLETED THE PLANNED INITIAL HANGARS 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 -1/40 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 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 ASOVEMENTIONED 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 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 AGREEMENTI AND ASSIGNEE HEREBY AGREES TO SUBMIT THE AFOREI4 ENTIONED REPORTS AND PAYMENTS TO THE AIRPORT MANAGER. IT ISM HOWEVER, SPECIFICALLY AGREED THAT THE CITY MAY DESIGNATE OTHERS AS AGENTS TO INSPECT ASSIGNEES BOOKS AND RECORDS AS ABOVEMENTIONED, -12- PROVIDED SUCH INSPECTIONS ARE PERFORMED AT REASONABLE TIMES DURING WORKING HOURS. 8. 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 BUILDING, SAID TRANSIENT APRON HAVING A LENGTH NORTH AND SOUTH OF APPROXIMATELY SEVEN HUNDRED FIFTY (750) FEET. THE TERM "PUBLIC APRON" SHALL INCLUDES 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- 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 EXPENSE, 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 PRESENT- ABLE CONDITION CONSISTENT WITH GOOD BUSINESS PRACTICE AND EQUAL IN APPEARANCE AND CHARACTER TO OTHER SIMILAR IMPROVEMENTS ON THE AIRPORT. E3. ASSIGNEE AGREES TO CAUSE TO BE REMOVED FROM THE ASSIGNED PREMISES ALL WASTE, GARBAGE RUBBISH, JUNKS 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 PROVISION FOR AND TO DISPOSE OF WASTE OILS AND LUBRICANTS AND TO DISPOSE OF SAME OFF THE AIRPORT PROPERTY. ASSIGNEE SPECIFICALLY AGREES NOT TO f' 0 • i 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 SUBLESSEES WILL AT ALL TIMES FURNISH GOODS 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.NONDISCRIMINATORY BASIS TO ALL USERS THEREOF, AND TO CHARGE FAIR, REASONABLE AND NONDISCRIMINATORY PRICES FOR EACH UNIT OF SALE OR SERVICE; PROVIDED THAT THE ASSIGNEE OR ITS TENANTS AND SUBLESSEES WILL BE ALLOWED TO MAKE REASONABLE AND NONDISCRIMINATORY DISCOUNTS, REBATES OR OTHER SIMILAR TYPE OF PRICE REDUCTIONS TO VOLUME PURCHASERS. PROVIDED, FURTHER, THAT NOTHING HEREIN CONTAINED IS INTENDED TO NOR SHALL BE CON- STRUED AS VESTING IN ASSIGNOR THE POWER OR AUTHORITY TO REGULATE ASSIGNEE'S 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 EXTENDING APPROXIMATELY 150 FEET EAST AND WEST AND 200 FEET NORTH AND SOUTH ADJACENT TO THE PROPOSED BUILDING AREA. 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 THEAPPROVAL 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 $22,000. THE ASSIGNEE SHALL BE ENTITLED TO REIMBURSEMENT FOR THE ACTUAL AMOUNT OF SAID CONSTRUCTION COST BY CREDITING THE RENTAL AND FLOWAGE FEES WHICH ARE OTHER- WISE PAYABLE UNDER THE TERMS OF THIS ASSIGNMENT UNTIL THE SAID CONSTRUCTION COSTS (INCLUDING INTERESTS LIMITED HOWEVER, TO ACTUAL INTEREST PAID AND FURTHER LIMITED TO INTEREST AT 6% 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. E. ASSIGNEE AGREES TO CONSTRUCT AND INSTALL PROPER AND NECESSARY - WATER, OAS AND SEWA ®E LINES WHICH WILL CONNECT WITH THE EXI ®YIN® UTILITY LINES LOCATED ADJACENT TO THE ENTRANCE ROAD, IN ORDER THAT WATER, GAS AND SEWAGE SERVICE WILL BE AVAILABLE TO THE ASSIGNED PREMISES. ASSIGNEE SHALL PAY ALL CHARGES FOR WATER, GAS, SEWAGE, ELECTRICITY AND OTHER PUBLIC UTIL:TIES SUPPLIED TO ASSIGNEE AND/OR ASSIGNEES PREMISES DURING THE TERM OF THIS LEASE AS SUCH CHARGES BECOME DUE AND PAYABLE. F. 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 SUBLESSEES, 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 PRJIVILEGES 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, ASSIGNEE'S AGENTS, SERVANTS, EMPLOYEES, CONSTRUCTION CONTRACTORS AND INVITEES, AND FOR THOSE OF ITS TENANTS AND SUBLESSEES. THE ASSIGNEE HEREBY AGREES TO CARRY PUBLIC LIABILITY INSURANCE IN THE MINIMUM SUM OF $50,000.00 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 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 -t6- BETWEEN THE ASSUREDS. SUCH POLICY SHALL BE IN A FORM SATISFACTORY TO THE CITY OF CORPUS CHRISTI. ALL SAID POLICIES SHALL PROVIDE FOR A MINIMUM OF TEN (10) DAYS NOTICE TO THE CITY OF CORPUS CHRISTI IN 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 MANAGERS 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 SUF- FICIENT IF IN WRITING AND MAILED, POSTAGE PREPAID ADDRESSED TO ASSIGNEE AT PORTLAND 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 ASSIGNEES 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 AIRPORTS THEN THIS AGREEMENT 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 ASSIGNEES 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 -t7- 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 HOWEVERp 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 IMPROVEMENTSO 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 PREMISESO 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 HEREINASOVE0 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 ASSIGNEES 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 ASSIGNEES EQUIPMENT AND PpRSONAL PROPERTY �� • AND IN THE .EVENT ,AS$IGNEE FAILS TO DO SO, THE SAME SHALL WORK AS AN ASAN- 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 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 WRITINQ,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 (RTICLE, 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 ASSIGNE483 IMPROVEMENTS, BECAUSE OF ASSIGNEES FAILURE. i 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 DAY of 1966. ASSIGNEE: CORPUS CHRISTI AVIATION AL KRAKOW CORPUS CHRISTI BANK & TRUST COMPANY, ATTEST: TRUSTEE BY CASHIER ACCEPTED AND APPROVED: ATTEST: CITY OF CORPUS CHRISTI, TEXAS BY HERBERT W. WHITNEY, CITY MANAGER CITY SECRETARY APPROVED AS TO LEGAL FORM THIS DAY OF , 1966: CITY ATTORNEY CORPUS CHRISTI, TEXAS .P1 DAY OF TO THE MEMBERS OF THE CITY COUNCIL 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 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 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. RESPECTFULLY, OR ro•Tem THE CITY OF CORPUS CHRISTI, TEXAS THE CHARTER RULE WAS SUSPENDED BY THE FOLLOWING VOTE: DR. MCIVER FURMAN Cld94tlf_ JACK BLACKMON 12Qi_ PATRICK J. DUNNE _a DR. P. JIMENEZ, JR. KEN MCDAN I EL BONNIE 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 MCDAN I EL /%IL•L�l�- ,v!�31'"' RONN I E S I ZEMORE WM. H. WALLACE Gwrp�