HomeMy WebLinkAbout08745 ORD - 01/31/1968AN 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 MUNICIPAL
AIRPORT SITE, WHICH PLOT IS AN AREA 250 FEET BY 350 FEET
ADJOINING THE NORTHEAST OF TAXIWAY "P", THE SOUTHEAST CORNER
OF SAID LAND AREA BEGINNING AT A POINT ON THE NORTHEAST
EDGE OF SAID TAXIWAY "P" 1250 FEET FROM THE EASTERNMOST
CORNER OF SAID TAXIWAY "P ", A COPY OF SAID ASSIGNMENT
AGREEMENT BEING ATTACHED HERETO AND MADE A PART HEREOF;
AND DECLARING AN EMERGENCY.
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BE IT ORDAINED BY THE CITY COUNCIL OF 7HE CITY OF-�CORPUS CHRISTI,
TEXAS:
SECTION 1. HAT THE CITY NAGER IS HERE THORIZED AND DIRECTED,
FOR AND ON BEHALF OF THE CITY OF CORP CHRISTI, TO ACC T AND APPROVE AN
ASSIGNMENT AGREEMENT
,� BETWEEN E CORPUS CHRISTI BANK AN TRUST COMPANY,
TRUSTEE, AND SCOT(r�SO , JR.,(EE C LINTY, TEXAS CO R `NN�G COMMERCIAL
HANGAR AND FIXED BA \`" ION LEASE ON COR STI MCiN{CIPAL
AIRPORT SITE, WHICH P IS AN AREA 250 ET BY 350 FEET ADJOIN�"''ISSSI THE
NORTHEAST OF TAXIWAY "P" THE�^SOUTHEAST CO NER OF SAID LAND AREAC6EGINNING
AT A POINT ON THE NORTHEAS EDGE OF SAID XIWAY " 1250 FEET FR %AGR
EASTERNMOST CORNER OF SAID [WAY "P ", CO Y OF SAID ASSIGNMENT MENT
BEING ATTACHED HERETO AND MADE A PART HERE
SECTION 2. THE NECES E APPROVAL BY THE CITY O
THE PROPOSED ASSIGNMENT OF LEASE, WHICH ASSIGN IS MADE BY AND BETWEE
THE CORPUS CHRISTI BANK & TRUST COM TEE, NO ASSIGNEE, SCOTT
BLEDSOE, JR., SO AS TONA E LE BEGIN PR EP�RATION OF PLANS ON
SAID PLOT AND COMMENCE CONSTRUCT N A QUICKLY AS POSSIB�CREATES A PUBLI
EMERGENCY AND AN- 'MPERATIVE P1l G—NU�SSITY REQUI ING THE �dSPENSION OF
THE CHARTER RULE THAT NO OPAnIAW-Cr OR RESOLUTION SH LL BE PAS /S0 FIN LLY
ON THE DATE OF ITS I�T SUCH OR DSUCH ORDINA CE OR RESOL I N SHALL
BE READ AT THREE SEVERAL MEETINGJ:P E CITY COUNCIL, AND THE YO , A NG
DECLARED THAT SUCH EMERGENCY AND NECESS Y EXIST, AND HAVING REQUES ED THAT
SUCH CHARTER RULE BE SUSPENDED AND THAT THIS ORDINANCE BE PASSED FI ALLY
S I --
ASSIGNMENT OF LEASE
HANGAR AND FIXED BASE OPERATORS
THE STATE OF TEXAS d
COUNTY OF NUECES
THIS AGREEMENT MADE BY AND BETWEEN THE CORPUS CHRISTI BANK
Bi. TRUST COMPANY, TRUSTEE, HEREINAFTER REFERRED TO AS ASSIGNOR, AND SCOTT
BLEDSOE, JR., OF THE COUNTY OF BEE, 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 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, ASSIGNEE HAS EXERCISED ITS OPTION UNDER AN ASSIGNMENT OF
LEASE DATED MARCH 30, 1964, TO TAKE AN ASSIGNMENT OF LEASE AS TO THE AREA
DESCRIBED HEREIN; AND
WHEREAS, ASSIGNOR DEEMS IT ADVANTAGEOUS TO ASSIGN UNTO ASSIGNEE
A SITE ON THE NEW MUNICIPAL AIRPORT, AS SHOWN AND DESCRIBED ON EXHIBIT "An
WHICH IS 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 OUT; AND
WHEREAS, ASSIGNEE DESIRES TO OBTAIN ANDAVAIL 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
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 AGREE-
MENT, 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
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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 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 HEREINABOVE DESCRIBED,
AN AREA DESIGNATED FOR COMMERCIAL HANGAR AND FIXED BASE AVIATION OPERATIONS
LOCATED GENERALLY ON THE WEST SIDE OF THE TERMINAL BUILDING FACILITIES
WITHIN THE AREA AND ALL AS SHOW14 AND DESCRIBED ON THE ATTACHED DRAWING
MARKED TRACT °B" ON EXH1131T "A", WHICH IS MADE A PART HEREOF FOR ALL IN-
TENTS AND PURPOSES AS IF COPIED VERBATIM HEREIN. SAID AREA HEREBY
LEASED 15 MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS:
BEGINNING AT THE MOST EASTERN CORNER OF THE INTERSECTION
OF TAXIWAY "R" WITH TAXIWAY "P" AND CONTINUING ALONG THE
NORTHEAST LINE OF TAXIWAY "P" A DISTANCE OF 750 FEET TO
THE SOUTHERN CORNER OF THE AREA LEASED BY ASSIGNEE BY
ASSIGNMENT DATED MARCH 30, 1964;
THENCE CONTINUING ALONG THE NORTHEAST LINE OF TAXIWAY "P"
A DISTANCE OF 500 FEET FOR THE PLACE OF BEGINNING OF THIS
TRACT;
THENCE CONTINUING ALONG THE NORTHEAST LINE OF TAXIWAY "P"
A DISTANCE OF 250 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 OF TAXIWAY "P" FOR THE NORTHEASTERN LINE OF THIS TRACT
A DISTANCE OF 250 FEET TO A POINT FOR THE EASTERN CORNER;
• THENCE AT RIGHT ANGLES A DISTANCE OF 350 FEET TO THE PLACE
OF BEGINNING.
PROVIDED, HOWEVER, THAT A BUILDING SETBACK LINE SHALL BE
OBSERVED TO THE EFFECT THAT NO BUILDING SHALL BE PLACED
ON THE NORTHWESTERN 50 FEET OF GROUND AREA FOR WHICH LEASE
IS HEREBY ASSIGNED.
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 FOLLOW-
ING 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 REPAIRING, LEASING,
PURCHASING, OR OTHERWISE ACQUIRING, SELLING, EXCHANGING, DISPENSING,
FINANCING, INSURING, OR DEALING IN OR DISTRIBUTING AIRCRAFT OF EVERY CLASS
AND DESCRIPTION INCLUDING ENGINES, MOTORS, AIRCRAFT INSTRUMENTS, SUPPLIES
AND ACCESSORIES; THE SERVICING OF AIRCRAFT WITH FUELS AND LUBRICANTS; THE
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OPERATION OF AERIAL TAXI AND SIGHTSEEING SERVICES AND AERIAL ADVERTISING,
AERIAL SURVEY, AERIAL PHOTOGRAPHY AND MAPPING; THE OPERATION OF SCHOOLS OF
FLYING, NAVIGATION, MECHANICS, AERIAL SURVEY, AERIAL PHOTOGRAPHY, AERIAL
DESIGNING, AERIAL CONSTRUCTION; AERONAUTICAL AND ALLIED RESEARCH; THE OPERA-
TION OF THE BUSINESS OF NON- SCHEDULED TRANSPORTATION OF PASSENGERS; THE
UNDERTAKING OF ANY PHASE OF AVIATION ACTIVITY FOR PROFIT RELATED TO OR CON-
TRIBUTING 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 ARTICLE
I11, 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 NAVIGATIONAL AIDS AND FACILITIES IN
COMMON WITH OTHERS '50 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 LIMIT-
ING THE RIGHTS OF THE ASSIGNEE HEREIN, THE ASSIGNEE SHALL HAVE THE FOLLOWING
SPECIAL PRIVILEGES, RIGHTS, USES AND INTERESTS:
t. 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 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
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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 FACILI-
TIES, 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 14ON- 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 STOR-
AGE -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 WITH-
IN 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, INSPEC-
TION AND LICENSING OF SAME, AND THE RIGHT TO PURCHASE AND SELL PARTS, EQUIP-
MENT AND AIRCRAFT ACCESSORIES.
5. THE ASSIGNEE HEREIN SHALL HAVE THE RIGHT TO PURCHASE AND SELL,
WITHIN THE ASSIGNED PREMISES, AERONAUTICAL CHARTS, PUBLICATIONS, CAPS, SUN-
GLASSES, COMPUTERS, RADIOS, AND OTHER AVIATION RELATED ITEMS NORMALLY SOLD
AND DISPENSED BY COMMERCIAL FIXED BASED HANGAR OPERATORS.
C. ASSIGNEE HEREIN SHALL HAVE THE RIGHT TO RENT, LEASE AND CHARTER
AIRCRAFT AND TO ENGAGE IN THE BUSINESS OF TEACHING AND/OR OTHERWISE INSTRUC-
TING FLYING AND AIRCRAFT MECHANICS.
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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 ASSIGNEES BUILDINGS, SHOPS AND OFFICES PROVIDED THAT THE SIZE
AND SHAPE OF SUCH SIGNS SHALL CONFORM TO THE GENERAL APPEARANCE OF THE AIR-
PORT AND THE BUILDINGS LOCATED THEREON, SUBJECT TO THE APPROVAL OF THE
AIRPORT MANAGER AS TO THE COMPLIANCE OF ANY 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 INSTAL-
LATION 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 ASSIGNMENTS
1. GROUND TRANSPORTATION FOR HIRE. IT IS UNDERSTOOD,
HOWEVER, THAT ASSIGNEE MAY PROVIDE GROUND TRANS-
PORTATION 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 PURPOSES 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.
Y. 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.
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8. THE SALE OF FLIGHT AND/OR TRIP INSURANCE.
9. COMMERCIALLY ENGAGING IN THE BUSINESS OF MAKING
RESERVATIONS FOR HOTELS MOTELS AND OTHER LODGING.
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 (1) HANGAR, BUT THAT ONE (1) HANGAR CONTAINING THE
ABOVE MENTIONED MINIMUM SQUARE FEET MUST BE ERECTED AS A CONDITION PRECE-
DENT AND PRIOR TO THE TIME THAT ASSIGNEE MAY AVAIL HIMSELF OR ITSELF OF
THE PRIVILEGES RIGHTS, USES AND INTERESTS SET FORTH HEREINABOYE.
ASSIGNEE FURTHER AGREES TO BEGIN THE CONSTRUCTION OF THE AFORE-
MENTIONED HANGAR WITHIN FIVE (5) YEARS AFTER THE DATE OF THE EXECUTION OF
THIS ASSIGNMENT AND AGREEMENT ANDS IN THE EVENT OF ASSIGNEES FAILURE OR
REFUSAL TO BEGIN SUCH CONSTRUCTIONS THEN THIS ASSIGNMENT AND AGREEMENT SHALL
EXPIRE AND SHALL BE OF NO FURTHER FORCE NOR EFFECT.
ASSIGNEE FURTHER AGREES, PRIOR TO THE CONSTRUCTION OF ANY
HANGAR OR IMPROVEMENT ON THE ASSIGNED PREMISESg 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 PLANSO AND THE CITY SPECIFICALLY
AGREES NOT TO DISAPPROVE OF SAID PLANS UNLESS SAID DISAPPROVAL IS
FOR SOME REASONABLE REASON. HowevERg 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.
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ARTICLE VI
TERM
THE TERM OF THIS ASSIGNMENT AND AGREEMENT SHALL BE AS
FOLLOWS.' COMMENCING ON THE DATE OF THE EXECUTION HEREOF AND
TERMINATING ON THE 13TH DAY OF JULY, 9990, PROVIDED, HOWEVER,
ASSIGNEE HAS NOT DEFAULTED IN ANY OF THE TERMS, CONDITIONS AND
PROVISIONS HEREOF.
ARTICLE Vil
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
1. THREE AND ONE -HALF CENTS (3 1/20) 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, EXCEPT AS COVERED BY PARAGRAPH 1, ABOVE.
3. THIRTY -THREE AND ONE -THIRD (33 1/3) PERCENT OF THE GROSS
INCOME FROM PARKING AND /OR TIE DOWN 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 PROPELLENTS AND FUELS SOLD BY AND THROUGH ASSIGNEES 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
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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 TRF STORAGE OF ONE THOUSAND (1,G03) 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
($16.00) PER YEAR, WHICH IS AN EXAMPLE ONLY AND THE ACTUAL CAPACITY OF
THE STORAGE TANKS ACTUALLY INSTALLED BY ASSIGNEE SHALL BE USED AS THE
BASIS FOR DETERMINING THE RENT HEREUNDER. THE PERMISSION TO INSTALL ANY
TANK OFF THE ASSIGMED PREMISES AS WELL AS THE LOCATION OF SUCH FUEL
STORAGE SITE OFF ASSIGNEE'S 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 07
THIS AGREEMENT, EITHER PARTY HERETO SMALL HAVE THE RIGHT AND OPTION TO
REQUEST AN ADJUSTMENT IN THE GROUND RENTAL RATES, THE FLOWAGE FEES AND THC
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 CF 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
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BUREAU OF LABOR STATISTICS INDEX FOR HOURLY WAGE RATES FOR ALL MANUFACTURING
EMPLOYEES IS $2.85 AND THE COMMODITY WHOLESALE PRICE INDEX IS 107.11 PRO-
VIOEDj 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 COMMENCE NINETY (90)
DAYS FOLLOWING THE DATE OF EXECUTION OF THIS ASSIGNMENT. IN THE EVENT ANY
COVERED SPACE EXCEEDS 12,000 SQUARE FEET OF FLOOR SPACES THE ADDITIONAL 2 -1/20
(MAKING A TOTAL OF 3 1/2¢) PER SQUARE FOOT FOR AREA OCCUPIED BY COVERING
OR BUILDINGS SHALL COMMENCE WHEN THE ASSIGNEE 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 IN-
CREASE THE GROUND RENTAL FROM 1¢ PER SQUARE FOOT PER YEAR TO 3 1/2¢ PER
SQUARE FOOT PER YEAR ON THE FIRST DAY OF THE MONTH 114MEDIATELY 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 WRITING2 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 (LOTH) 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
mo
AGREES THAT ALL BOOKS AND RECORDS COVERING SUCH SALES SHALL BE OPEN
TO INSPECTION BY THE CITY OF CORPUS CHRISTI AT ALL REASONABLE TIMES.
%. 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,
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 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:
m
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, AKD SUBJECT TO THE CONDITIONS AND HAPPENINGS CONTAINED IN
ARTICLE X, PARAGRAPH E, OF THIS AGREEMENT. .
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. WATER, GAS
AND SEWAGE LINES WITHIN THE AREA COVERED BY THIS ASSIGNMENT MAY BE
CONNECTED WITH SAID WATER, 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 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
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
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•
•
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 -
OFD AND TO CHARGE A FAIRS REASONABLE AND NON- DISCRI1INATORY 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. PROVIDEDl FURTHERS THAT NOTHING HEREIN CONTAINED AS INTENDED
TO NOR SHALL BE CONSTRUED AS VESTING IN ASSIGNOR THE POWER OR AUTHORITY TO
REGULATE ASSIGNEES CHARGES FOR STUDENT TRAININGS AIRCRAFT RENTALS AIRCRAFT
STORAGE AND AIRCRAFT CHARTER SERVICE AND SERVICES SPECIFICALLY RELATED TO
SUCH SERVICES.
-�3-
ASSIGNEE SHALL NOT USES SUFFER OR PERMIT ANY PERSON TO USE THE
PREMISES HEREIN ASSIGNED FOR ANY ILLEGALS 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 INVITEESp 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 MAINTENANCES 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 ASSIGNEES 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 $50000.00 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 ADDITIONS BE ENDORSED TO PROVIDE FOR CROSS - LIABILITY
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 0 0%
DAYS NOTICE TO'THE CITY OF CORPUS CIIRISTI 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 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 FRO14 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 AIRPORTS 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
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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 DA14AGE 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 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 PERSONAL PROPERTY,
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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
.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 ASSIGNEES UNLESS WITHIN SAID TIME ASSIGNEE HAS
FULLY COMPLIED WITH OR CORRECTED THE CONDITIONS PROVIDED, HOWEVER, THAT
ASSIGNOR AND/OR THE CITY OF CORPUS CHRISTI AGREE TO INCLUDE IN THIS
NOTICE A STATEMENT WITH RESPECT TO THE 4RTICLE, 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, ASSIGNMENTS 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 ASSIGNEE'S IMPROVEMENTS BECAUSE OF ASSIGNEES FAILURE
OR REFUSAL OR INABILITY TO PAYS SAID PERSONS PERSONS COMPANY OR
CORPORATION MAY CONTINUE TO OPERATE THE FIXED BASE AVIATION OPERA-
TIONS CONDUCTED BY ASSIGNEE WITH THE SAME PRIVILEGES, USES RIGHTS,
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•
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 ,
1968.
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 1968:
CITY ATTORNEY` //