HomeMy WebLinkAbout14976 ORD - 07/03/1979jkh:7-2-79;lst
i
AN ORDINANCE
AUTHORIZING THE CITY MANAGER TO ACCEPT AND APPROVE AN
ASSIGNMENT OF LEASES AGREEMENT FROM SCOTT BLEDSOE, JR.,
AND BLEDSOE AVIATION, INC., TO CHAPARRAL AVIATION, INC.,
COVERING COMMERCIAL HANGARS AND FIXED BASE AVIATION
LEASE PLOTS AT THE CORPUS CHRISTI INTERNATIONAL AIRPORT,
ALL AS SHOWN AND MORE FULLY DESCRIBED IN THE ASSIGNMENT
OF LEASE AGREEMENT, A SUBSTANTIAL COPY OF WHICH IS ATTACHED
HERETO AND MADE A PART HEREOF, MARKED EXHIBIT "1", CONDI-
TIONED UPON CHAPARRAL AVIATION, INC., PAYING INCREASED
RENTALS AND FUEL FLOWAGES, ASSUMING EXISTING OBLIGATIONS
WITH SMALL BUSINESS ADMINISTRATION, AND AGREEING TO
EXECUTE A MODIFICATION OF LEASE AGREEMENT WITHIN NINETY
(90) DAYS, A SUBSTANTIAL COPY OF WHICH IS ATTACHED HERETO
AS EXHIBIT "2"; AND DECLARING AN EMERGENCY.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
TEXAS:
SECTION 1. That the City Manager is hereby authorized to accept
and approve an assignment of leases from Scott Bledsoe, Jr., and Bledsoe
Aviation, Inc., to Chaparral Aviation, Inc. (Chaparral), all as more
fully described in the assignment of lease agreement, a substantial copy
of -which is attached hereto and made a part hereof, marked Exhibit "1".
Said assignment covers commercial hangars and fixed base aviation lease plots
at the Corpus Christi International Airport. The City's acceptance and approval
of this assignment shall be subject to the following conditions:
A. Chaparral will pay a rental rate of seven and one-fourth (7-1/4t)
cents per square foot per year for improved area; two and one-half (2-1/2¢)
cents per square foot per year for unimproved area; and a flowage fee of
four and three-fourths(4-3/4¢) cents per gallon of fuels purchased, except
that sold to commercial airline aircraft holding valid operating contracts
on the airport, and except that lost due to theft or leakage upon furnishing
proof of such loss. The City retains the right to adjust the rates for fuel
flowage fees with such rates to be published by ordinance duly adopted by
the City Council. Chaparral shall immediately begin making improved area
rental payments on twelve thousand (12,000) square feet for a hangar which
is expected to be built by Chaparral before July 13, 1990.
B. Chaparral recognizes and shall assume the obligations relating
to all existing encumbrances held by the Small Business Administration upon
the leasehold and improvements on the demised premises.
C. This assignment to Chaparral shall be null and void if, within
ninety (90) days after the passage of this ordinance, Chaparral fails to
400
14976
execute a modification of lease agreement, a substantial copy of which is
attached hereto as Exhibit "2"
SECTION 2. The necessity to authorize the City Manager to accept
and approve an assignment of leases, all as aforesaid, at the earliest
practicable date creates a public emergency and an imperative public neces-
sity requiring the suspension of the Charter rule that no ordinance or
resolution shall be passed finally on the date of its introduction but 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 3 day of July, 1979.
ATTEST:
/WI
/
ity ecretary MAY
APPROVED:
DAY OF JULY, 1979:
J. BRUCE AYCOCK, CITY ATTORNEY
By
Assistant City Attorney
THE CITY 'F CO PUS CHRISTI, TEXAS
ASSIGNMENT AGREEMENT
THE STATE OF TEXAS
COUNTY OF NUECES #
WHEREAS, on August 29, 1959, the qualified voters of the City of
Corpus Christi, Texas, a municipal corporation, sometimes hereinafter referred
to as the "City", approved an agreement between the City, as Lessor, and
Corpus Christi Bank and Trust Company, hereinafter referred to as the
"Trustee", as Lessee, under the terms of which the City leased and demised
to the Trustee certain lease sites, portions of which are designated for
commercial hangar and fixed base aviation operations, hereinafter referred
to as the "Lease", a description of said lease sites being shown on the
Master Plan of the then new municipal airport, now known as Corpus Christi
International Airport, hereinafter referred to as the "Airport", a copy of
which Master Plan is on file in the office of the Director of Public
Utilities of the City and to which Master Plan and Lease specific reference
is hereby made and the contents of which are incorporated herein as if copied
in full; and
WHEREAS, on March 30, 1964, Trustee, as Lessee from the City,
assigned to Scott Bledsoe, Jr., of Bee County, Texas, a lease agreement
covering certain of said lease sites, or portions thereof, to which assign-
ment reference is hereby made and the contents thereof are incorporated
as if copied in full; and
WHEREAS, on July 14, 1960, Trustee, as Lessee from the City,
assigned to Gulf Coast Aviation, Inc., a Texas corporation, a lease agree-
ment covering other of said lease sites, or portions thereof, to which
assignment reference is hereby made and the contents thereof are incorporated
as if copied in full; and
WHEREAS, on May 1, 1968, Gulf Coast Aviation, Inc., assigned to
Bledsoe Aviation, Inc., its interest in the above-mentioned leasehold, to
which assignment reference is hereby made and the contents thereof are
incorporated as if copied in full; and
Eivb
'14
WHEREAS, the City, as Lessor, approved the assignment of interests
in each of the leaseholds and improvements thereon to the Small Business
Administration by Ordinance Nos. 10021 and 10003 on December 2, 1970, and
November 18, 1970, respectively, to which assignments references are hereby
made and the contents thereof are incorporated as if copied in full; and
WHEREAS, Scott Bledsoe, Jr., and Bledsoe Aviation, Inc., hereinafter
sometimes referred to collectively as Assignors, desire to assign their
respective leaseholds and all of their rights, interests, privileges and
titles therein to Chaparral Aviation, Inc., a Texas corporation, hereinafter
referred to as Chaparral; and
WHEREAS, the City of Corpus Christi is agreeable to the transfer of
the aforesaid leases to Chaparral subject to certain conditions set out by
Ordinance No. , passed July 3, 1979:
NOW, THEREFORE, the following agreement is hereby entered into by
and between the parties hereto:
All of the rights, interests, privileges and titles heretofore
granted to Assignors for the operation of commercial hangars and fixed base
aviation lease plots at the Airport are hereby assigned to Chaparral, with
the approval of the City and the Small Business Administration. The terms
and conditions of the assignments and lease heretofore granted to Assignors
shall remain in force, but subject to the conditions of acceptance set out
in Ordinance No.
This assignment shall be null and void if, within ninety (9Q)
days after the passage of Ordinance No. , Chaparral fails to
execute a modification of lease agreement, a substantial copy of which is
attached hereto as Exhibit "2".
Scott Bledsoe, Jr.
ATTEST: BLEDSOE AVIATION, INC.
By
ATTEST: CHAPARRAL AVIATION, INC.
By
ATTEST:
APPROVED:
SMALL BUSINESS ADMINISTRATION
By
ACCEPTED AND APPROVED:
ATTEST: CITY OF CORPUS CHRISTI
By
City Secretary R. Marvin Townsend, City Manager
APPROVED:
DAY OF JULY, 1979:
J. BRUCE AYCOCK, CITY ATTORNEY
By
Director of Finance
MODIFICATION OF LEASE
STATE OF TEXAS
COUNTY OF NUECES
WHEREAS, on August 29, 1959, the qualified voters of the City of
Corpus Christi, Texas, a municipal corporation, sometimes hereinafter referred
to as the "City," approved an agreement between the City, as Lessor, and Corpus
Christi Bank and Trust Company, hereinafter referred to as the "Trustee," as
Lessee, under the terms of which the City leased and demised to the Trustee
certain lease sites, portions of which are designated for commercial hangar
and fixed based aviation operations, hereinafter referred to as the "Lease,"
a description of said lease sites being shown on the Master Plan of the then
new municipal airport, now known as Corpus Christi International Airport,
and hereinafter referred to as the "Airport," a copy of which Master Plan is
on file in the office of the Director of Public Utilities of the City and to
which Master Plan and Lease specific reference is hereby made and the contents
of which are incorporated herein as if copied in full; and
WHEREAS, on March 30, 1964, Trustee, as Lessee from the City, assigned
to Scott Bledsoe, Jr., of Bee County, Texas, a lease agreement covering certain
of said lease sites, or portions thereof, to which assignment reference is hereby
made and the contents thereof are incorporated as if copied in full; and
WHEREAS, on July 14, 1960, Trustee, as Lessee from the City, assigned
to Gulf Coast Aviation, Inc., a Texas corporation, a lease agreement covering
other of said lease sites, or portions thereof, to which assignment reference is
hereby made and the contents thereof are incorporated as if copied in full; and
WHEREAS, on May 1, 1968, Gulf Coast Aviation, Inc., assigned to Bledsoe
Aviation, Inc., its interest in the above-mentioned leasehold, to which assign-
ment reference is hereby made and the contents thereof are incorporated as if
copied in full; and
WHEREAS, the City, as Lessor, approved the assignment of interests in
each of the leaseholds and improvements thereon to the Small Business Adminis-
tration by ordinance numbers 10021 and 10003 on December 2, 1970, and November
18, 1970, respectively, to which assignments references are hereby made and the -
contents thereof are incorporated as if copied in full; and
/
7 -
WHEREAS, by Ordinance No. 14976 , passed and approved by the City
Council on July 3, 1979, the City approved, subject to certain conditions, an
assignment of lease to Chaparral Aviation, Inc., a Texas corporation, herein-
after referred to as Chaparral; and
WHEREAS, the parties hereto desire to modify the provisions of the
said agreements governing their rights, interests, privileges and titles in the
leased premises occupied by Assignors;
NOW, THEREFORE, the following assignment and modification of lease
agreement is hereby entered into by and between the parties hereto:
PART I
1. The provisions of this Part I shall become effective upon execu-
tion of this modification agreement by all of the parties hereto.
2. The above-mentioned assignments and lease agreement (with the
exception of the assignment of interests to the Small Business Administration)
affecting the leased premises occupied by Chaparral shall terminate and the
provisions of Part II (below) shall become effective and constitute a new lease
agreement of the premises described therein, if, prior to July 13, 1990, Chaparral
complies with the provisions of Article VIII, Section 2(c) of the City Charter
by constructing on the demised premises a new hangar, reasonably expected by the
City to have a useful life greater than thirty (30) years and a value which in
thirty (30) years will be commensurate with the value of the new lease over its
thirty (30) year term. The new hangar shall have a ground -level area of not
less than twelve thousand (12,000) square feet. Rental payments on twelve
thousand (12,000) square feet for this hangar shall begin immediately upon
execution of this modification agreement, regardless of whether the hangar has
been, or is being built. IF Chaparral does not comply with these requirements,
Part II shall not become effective, and the presently effective assignments
and lease agreement, as modified by Part I, will expire according to their
terms, no later than July 13, 1990.
3. Chaparral shall spend at least seventy five thousand dollars
($75,000) rehabilitating the presently existing hangars located on the leased
premises. This work must be completed within one year after the execution of
this modification agreement and in accordance with a plan acceptable to the
City. Failure by Chaparral to make such renovations within one year shall auto-
-2-
matically result in the lease expiring on July 13, 1990, notwithstanding
Chaparral's compliance with Article VIII, Section 2(c) of the City Charter as
described in 42 above.
4. Chaparral recognizes and shall assume the obligations relating
to all existing encumbrances held by the Small Business Administration upon
the leasehold and improvements on the demised premises.
5. Article VI (Rent) contained in Part II (below) shall become
effective upon execution of this modification agreement by all of the parties
hereto.
-3-
PART II
HANGAR AND FIXED BASE OPERATOR'S LEASE
This lease is entered into on the day and year below stated
between the City of Corpus Christi, a home rule city, situated in Nueces
County, Texas, hereinafter called City, and Chaparral Aviation, Inc., a
Texas corporation, hereinafter referred to as Chaparral, upon these terms,
performable in Nueces County, Texas.
ARTICLE I
DESCRIPTION OF LEASED SPACE
City leases unto Chaparral an area designated for commercial
hangar and fixed base operations located generally on the west side of the
terminal building as shown on the attached drawing marked Exhibit "A" which
is made a part hereof as if copied verbatim herein and specifically described
as follows:
Starting at the intersection of the southwest boundary of
taxiway "P" and the southeast boundary of taxiway "R" thence
proceeding northeast 150 feet to a point for a place of be-
ginning;
Thence turning left ninety degrees and continuing northwest
along the northeast boundary of taxiway "P" for a distance
of 1,250 feet for the southwest corner;
Thence turning right ninety degrees continuing northeast for
350,feet for the northwest corner;
Thence turning ninety degrees continuing southeast along a line
parallel to the northeastern line of taxiway "P" for a distance
of 1,250 feet for the southeast corner;
Thence turning right ninety degrees and continuing southwest
350 feet to the place of beginning;
In addition to the above described premises, Chaparral shall
have the Right of Refusal to lease an area adjacent to the northwest of the
area hereby leased and described heretofore and designated "Right of Refusal
Area" as shown on Exhibit A and more particularly described as follows:
Being an area 350 feet by 250:feet extending in a northwest-
erly direction and abutting 250 feet on said taxiway "P".
The Right of Refusal concerning this area shall be on the following
terms and conditions:
-4-
In the event a bonafide offer is submitted to the City by a
third party to lease all or a portion of said Right of Refusal
Area,then the City shall notify Chaparral and Chaparral must
exercise its right to lease said area at the terms of said
bonafide offer, within fifteen (15) calendar days from receipt
of the notice. The City shall provide said notice in writing
and likewise Chaparral must provide its notice to the City that
it desires to exercise its right to lease in writing.
ARTICLE II
PRIVILEGES, RIGHTS, USES AND INTERESTS
A. USE OF LEASED PREMdISES. Chaparral shall use the leased
premises for commercial hangar and fixed base aviation operations herein
defined and for no other use without the specific written permission of the
City;
(1) Housing aircraft in hangars and related shop and
office use;
(2) 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;
(3) Servicing of aircraft with fuels and lubricants;
(4) Operation of aerial taxi and sightseeing services and
aerial advertising, aerial survey, aerial photography and mapping;
(5) Operation of schools of flying, navigation, aviation
mechanics, aerial survey, aerial photography, aerial designing, aerial
construction;
(6) Aeronautical and allied research;
(7) Operation of the business of nonscheduled transportation
of passengers; and
(8) Undertaking of any phase of aviation activity for pro-
fit related to or contributing in any way to aircraft sales, servicing and
distribution or aerial navigation.
-5-
B. RIGHT TO USE AIR FIELD. Chaparral shall have the right to
use the public areas and public airport facilities including the runways, taxi-
ways, aprons, ramps and navigational aids and facilities in common with others
so authorized, 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 ac-
cordance with al] reasonable and applicable rules, regulations, ordinances
and Charter of the City.
C. RIGHTS ENUMERATED. Chaparral shall have the following rights:
1. To sell aircraft fuels, lubricants and propellants on the
leased premises, on any other public apron, and within any private hangar
area. City reserves the right to lease or rent the apron immediately ad-
jacent to the control tower annex building, known as the transient apron,
as shown on the master plan of the Corpus Christi International Airport,
to an operator or operators as a separate business for the dispensing of
fuels, lubricants and propellants and/or for the operation of tiedown faci-
lities on said apron. In the event that the transient apron is operated as
a separate business, then Chaparral shall not have the right to the use of
the tiedowns on said apron or to sell and dispense fuels, lubricants or
propellants on said apron.
2. To store aircraft fuels, lubricants, and propellants on
the leased premises.
3. To maintain and operate mobile equipment when reasonable
and necessary to fill and dispense aircraft fuels, lubricants and propellants
on the leased premises and within the area described above, with right of
access to the commercial ramp and connecting taxiways.
4. To maintain, store and service aircraft which shall in-
clude hangar storage of aircraft, major and minor overhauling and repairing
of aircraft, repairing; inspection and licensing of same, and purchase and
sale of parts, equipment and aircraft accessories.
5. To purchase and sell, within the leased premises, aero-
nautical charts, publications, caps, sunglasses, computers, radios, and
other aviation related items normally sold and dispensed by commercial fixed
base hangar operators.
-6-
6. To rent, lease and charter aircraft and to engage in the
business of teaching and/or otherwise instructing flying and aircraft mecha-
nics.
7. To place and erect signs and advertising material Within
the hangars, offices and shops on the leased premises at Chaparral's discre-
tion; and to place and erect signs and other advertising material on the outside
of Chaparral's buildings, shops and offices, provided that the size and shape
of such signs shall conform to the general appearance of the airport premises,
and be subject to the approval of the Airport Manager; and 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 installa-
tion of any sign or advertising material at any location outside of or off
the leased premises, and subject to the order of the Airport Manager to require
the removal of such installations or any of them at any time.
D. ACTIVITIES AND USES EXPRESSLY PROHIBITED. The following
activities and uses are expressly excluded from this lease and Chaparral is
prohibited from any such use or activity except as noted:
1. Ground Transportation for hire. Chaparral may provide
ground transportation for its employees and aviation
customers as a service except that said service may not
be offered to the general public on a commercial basis.
2. Western Union. Chaparral 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 Chaparral 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 for those that may be
conducted within Chaparral'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 reser-
vations for hotels, motels and other lodging.
-7-
w.
ARTICLE III
CONSTRUCTION OF HANGARS AND IMPROVEMENTS
Prior to construction of any hangar or improvements on the
leased premises, Chaparral will submit plans and specifications to the City
for approval and review with respect to the general appearance, safety, type
of construction proposed and life and value.
ARTICLE IV
ACCEPTANCE OF PREMISES
Chaparral acknowledges that the premises have been inspected
and accepts the leased premises in its present physical condition and will
pay the total cost of developing said property.
ARTICLE V
TERM
This lease shall be for a term of thirty (30) years, provided
Chaparral has not defaulted in any of the terms, conditions, and provisions
hereof. This term shall commence upon completion of construction of the
hangar and all requisite conditions for compliance with Article VIII, Sec-
tion 2(c) of the City Charter.
ARTICLE VI
RENT
Chaparral will pay City a base rental fixed as of July, 1960
and supplemented as follows:
1. Three cents (3t) per square foot per year for the area
covered by hangars, shops, offices and/or other improvements.
2. One cent (1¢) per square foot per year for the area within
the leased premises between the building setback lines where buildings could
legally 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, shown on Exhibit "A".
4. Two (2t) cents per gallon for each gallon of gasoline and/or
other propellants and fuels purchased by Chaparral, except as to gasoline
-8-
sold to commercial airline aircraft holding valid operating contracts on the
airport. Chaparral will not be'required to pay for loss of such fuels due to
theft or leakage, upon furnishing the City with sufficient proof of such loss.
5. Chaparral will not be charged for storage tanks within
leased premises, except ground rental, and will submit storage tank pians to
the City for approval prior to installation. Fuel storage sites on property
outside the leased premises will require a separate lease.
6. At the end of each three year period after the execution of
this lease,•either City or Chaparral may request an adjustment in the ground
rental rates, and the flowage fees 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 July, 1960 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.
Should either of said indices change substantially as to form
and basis of data or manner of publication, the above adjustment provision
may be amended in writing. _
On the base date, July, 1960, the United States Bureau of Labor
Statistics index for hourly wage rates for all manufacturing employees was
$2.26 per hour and the commodity wholesale sale price index was 100.8.
Such formula must result in a change of at least 1/4¢ per unit or no ad-
justment shall be made, and all adjustments shall be made to the nearest 1/4¢.
City retains the right to adjust the rates for fuel flowage fees
set forth herein, such rates to be published by ordinance duly adopted by
the City Council. City will put this same clause in any renewal, amendment,
or extension of any other existing fixed base operator lease as well as any
other new fixed base operator lease.
Effective as of the date of the execution of this agreement, the
rents based on the foregoing formula are as follows: The Improved Area,
seven and one-fourth (7 1/4¢) cents per square foot per year: Unimproved
-9-
area, two and one-half (2 1/2¢) cents per square foot per year; Flowage
fee, four and three-fourths (4 3/4) cents per gallon. Ground rentals
as set out here and above shall be computed on a monthly basis and
shall become due and payable on the first day of each calendar month
throughout the term of this lease. On the first day of the next calendar
month after the rentals begin under this lease, Chaparral shall prepare
a report in writing on a form approved by City showing the total number
of gallons of gasoline fuels and/or other propellant purchased by Chaparral
and the total gross receipts on the above mentioned apron during the pre-
ceding calendar month and shall submit said report to City along with the
rental to be paid thereunder prior to the tenth day of said calendar month.
Chaparral shall submit a like report and payment therefor for each succeeding
month during the term of this lease. Chaparral will keep full and accurate
records of all trnsactions, purchases, sales, and income, both from cash
sales and credit sales, that in any way concern rental to City; and will
hold all books and records covering such sales open to inspection by City
at all reasonable times.
7. City appoints its airport manager as its agent to receive all
rentals and reports under this Tease and Chaparral will submit said reports
and payments to the Airport Manager. City may designate others as agents to
inspect Chaparral's books and records, such inspections to be performed at
reasonable times during working hours.
8. In addition to all other remedies which City may have to
enforce the obligations of Chaparral, City shall have a lien on all property
of Chaparral placed on said premises for all moneys, rents, shares of gross
receipts and other obligations of Chaparral.
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 "N" 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.
-10-
' The term "public apron" shall include, in addition to the tran-
sient 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 extend-
ing north and south and extending east and west a distance
of approximately 1,050 feet, all of which area lies as
shown on Exhibit A south of the airport terminal building
and airport control tower building.
10. City reserves the right to change the base date of July, 1960
referred to above in the event that the City makes the same change in any
other existing or new fixed base operator leases.
ARTICLE VII
UNDERTAKINGS OF CITY
City covenants as follows:
A. To operate Corpus Christi International Airport as a public
airport during the term of this lease subject to and consistent with and
pursuant to the assurances given by the City to the United States Government
under the Federal Airport Act, and to Chaparral by this lease.
B. To make water, gas and wastewater service available upon the
same basis as applies to residents within the City of Corpus Christi.
Chaparral shall pay all charges for water, gas, wastewater, electricity and
other public utilities supplied to Chaparral and/or Chaparral's premises
during the term of this lease as such charges become due and payable.
ARTICLE VIII '
UNDERTAKINGS OF CHAPARRAL
Chaparral further covenants as follows:
A. At his own expense, to improve the leased premises by the
construction of hangars, offices, shops and/or other improvements, as herein-
above mentioned, and to maintain said improvements and leased premises in
a presentable condition consistent with good business practice and equal
in appearance and character to other similar improvements on the airport.
B. To remove from the leased premises all waste, garbage,
rubbish, junk, worn-out parts and other refuse, and not to deposit the
same or allow the same to accumulate, except temporarily in connection with
collection for removal, on any part of the leased premises or other property
-11-
located within the airport site; provided, however, that City may provide
garbage service for a reasonable fee consistent with charges made to commer-
cial establishments of a similar nature.
To make adequate provision for and to dispose of waste oils and
lubricants off the airport property and never put or allow to be put any such
waste oils and lubricants into the airport wastewater system.
C. To supply good, prompt and efficient service adequate to
meet all the demands for such service at the airport on a fair, equal
and nondiscriminatory basis to all users thereof, and to charge a fair,
reasonable and nondiscriminatory price for each unit of sale or service;
provided that Chaparral 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. Nothing herein contained is
intended to nor shall be construed as vesting in City the power or authority
to regulate Chaparral's charges for student training, aircraft rental, air-
craft storage and aircraft charter service and services specifically
related to such service.
ARTICLE IX
GENERAL PROVISIONS
A. INDEMNIFICATION. Chaparral is and shall be deemed to be an
independent contractor and operator responsible to all parties for its
respective acts or omissions and those of its agents, servants, employees,
invitees, tenants and sublessees, and City shall in no way be responsible
therefor. In the use of the airport and in the maintenance, erection
or construction of any improvements thereon, and the exercise and enjoyment
of the rights herein granted, Chaparral will indemnify and save harmless
City from any and all losses or claims for damages that may proximately
result to City from any negligence on the part of Chaparral, Chaparral's
agents, servants, employees, construction contractors and invitees, and for
those of its tenants and sublessees. Chaparral will carry public liability
insurance in the minimum sum of $500,000 single limit. All insurance
shall be carried in a responsible company and shall name City as an assured.
-12-
Such policy shall, in addition, be endorsed to provide for cross -liability
between the assureds. Such policy shall be in a form satisfactory to
City. All such policies shall provide for a minimum of ten (10) days
notice to City in the event of cancellation or material change in the terms
thereof.
8. NOTICES. Notices to City shall be deemed sufficient if
in writing and mailed, postage prepaid, addressed to the Airport Manager,
Route 2, Box 902, Corpus Christi, Texas 78410, or to such other address as
may have been designated in writing by City from time to time. Notice to
Chaparral shall be deemed sufficient if in writing and mailed, postage pre-
paid, addressed to Chaparral at P. 0. Box 17628, San Antonio, Texas 78217.
C. TAXES. Chaparral will pay any and all real and
personal
property taxes levied from time to time upon the improvements placed upon
the leased premises.
D. All of the terms, covenants and agreements herein contained
shall be binding upon and shall inure to the benefit of the heirs, successors
and assigns of Chaparral and City.
E. DESTRUCTION. In the event that Chaparral'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 Chaparral and City to
such an extent that the airportcannot be operated as an airport, then
this agreement shall terminate.
In the event that the leased premises or Chaparral's improve-
ments or the airport facilities reasonable and necessary for Chaparral to
conduct Chaparral's business are partially destroyed or damaged due to
acts of God or other acts outside the control of Chaparral and/or City
to such extent that the leased premises may not economically be used for
the uses and purposes for which leased, then this agreement and lease shall
be suspended during the period of such partial. damage or destruction and
shall not begin or resume until the damage has been repaired. City 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
-13-
Chaparral's improvements, to either declare the lease terminated, suspended
or to require Chaparral to repair his improvements, and fix the time within
which such repairs shall be made.
F. SUBORDINATION. This lease shall be subordinate to the pro-
visions of any existing or future agreement between City 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 lease out from the control of City'or to substantially destroy the
commercial value of the leased premises, then City must provide adequate
premises to Chaparral or this agreement shall terminate.
G. TERMINATION.
• 1. This lease shall terminate at the end of the term set
forth in Article V hereinabove, and Chaparral shall have no further right
or interest in any of the leased premises or rights, uses or other interests
contained in this agreement, and Chaparral will vacate and remove all
equipment placed thereon by Chaparral prior to the execution of this lease,
unless Chaparral and the City renegotiate said lease and enter into a mutually
satisfactory lease extending the term hereof. Chaparral shall have one
hundred twenty (120) days within which to remove Chaparral's equipment
and personal property, and in the event Chaparral fails to do so, the same
shall work as an abandonment and title shall pass to City, or City may
remove said equipment and personal property and Chaparral will reimburse
City for its expense.
2. At the termination of this lease all improvements placed
on the lease by Chaparral including existing hangars shall revert to City
in accordance with the City Charter, Article VIII, Section 2, as amended.
N. CANCELLATION. Default in paymept of any of the rentals shall
give City the right to terminate this lease at any time after thirty (30)
days notice in writing has been given to Chaparral, unless within.said time
Chaparral has fully complied with the rental provisions.
Default in any of the other covenants on the part of Chaparral
shall likewise give City the right to terminate this lease at any time
-14-
after thirty (30) days notice in writing has been given Chaparral, unless
within said time Chaparral has fully corrected the condition creating the
default. City will specify in such default notice the lease provision
under which City claims that Chaparral is in default, and the acts or
omissions giving rise to the claimed default.
ARTICLE X
TRANSFER OF LEASE
The written authority of the City shall be obtained by
Chaparral prior to any sale, reassignment, transfer or subassignment of this
lease. Should Chaparral borrow money or otherwise finance the improve-
ments to be constructed hereunder, and should it become necessary for
any lender, financing agency or guarantor to foreclose and take over
this lease because of Chaparral's failure to pay, said lender, financing
agency or guarantor may operate the lease subject to all of its provisions,
provided all obligations of Chaparral are met and all payments owing be
paid.
ARTICLE XI
AIR OPERATIONS AREA SECURITY
Chaparral shall provide for the security of the air operations
area to prevent ground entry or movement of unauthorized persons in
accordance with Section 9-32 of the City Code of Corpus Christi, Texas,
and any regulations imposed upon City by the Federal Aviation Administration.
Chaparral shall indemnify and hold harmless City, its officers and employees,
from any charges, fines, or penalties that may be levied by any agency of
the United States or the State of Texas by reason of Chaparral's failure
to comply with this requirement.
Physical barriers to prevent access' to the air operations
area must be in effect during construction upon the leased premises. This
covenant is in addition to any of the above indemnification provisions.
-15-
ARTICLE XII
CIVIL RIGHTS
In exercising any of the leased rights or privileges, Chaparral
shall not on the grounds of race, sex, creed or national origin discriminate
or permit discrimination against any person or group of persons in any manner
prohibited by Part 21 of the Regulations of the Secretary of Transportation.
City hereby expressly retains the right to take such action as the United
States may direct to enforce this nondiscrimination covenant.
ARTICLE XIII
PRIOR INTERESTS
Chaparral recognizes and shall assume the obligations relating
to all•existing encumbrances held by the Small Business Administration upon
"the leasehold and improvements on the demised premises.
EXECUTED on this
ATTEST:
day of , 1979.
CHAPARRAL AVIATION, INC.
By
ATTEST: SMALL BUSINESS ADMINISTRATION
By
ATTEST: CORPUS CHRISTI BANK & TRUST COMPANY
By
ATTEST: CITY OF CORPUS CHRISTI
By
City Secretary
APPROVED: , 1979:
J. BRUCE AYCOCK, CITY ATTORNEY
By
Assistant City Attorney
Director of Finance
R. Marvin Townsend, City Manager
CORPORATE ACKNOWLEDGMENT
THE STATE OF TEXAS )
COUNTY OF NUECES )
BEFORE ME, the undersigned authority, on this day personally
appeared
, known to me to be the person and
officer whose name is subscribed to the foregoing instrument and acknowledged
to me that he executed the same as the act and deed of
, for the purposes and consideration therein
expressed and in the capacity therein stated.
GIVEN UNDER MY HAND.AND SEAL OF OFFICE, this the day of
, 1979.
Notary Public in and for Nueces County,
Texas
My commission expires:
CORPORATE ACKNOWLEDGMENT
THE STATE OF TEXAS )
COUNTY OF NUECES )
BEFORE ME, the undersigned authority, on this day personally
appeared
, known to me to be the person and
officer whose name is subscribed to the foregoing instrument and acknowledged
to me that he executed the same as the act and deed of
, for the purposes and consideration therein
expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the day of
, 1979.
Notary Public in and for Nueces County,
Texas
My commission expires:
CORPORATE ACKNOWLEDGMENT
THE STATE OF TEXAS
COUNTY OF NUECES
BEFORE ME, the undersigned authority, on this day personally
appeared
, known to me to be the person and
officer whose name is subscribed to the foregoing instrument and acknowledged
to me that he executed the same as the act and deed of
, for the purposes and consideration therein
expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the day of
, 1979.
THE STATE OF TEXAS
COUNTY OF NUECES
appeared
Notary Public in and for Nueces County,
Texas
My commission expires:
CORPORATE ACKNOWLEDGMENT
BEFORE ME, the undersigned authority, on this day personally
, known to me to be the person and
officer whose name is subscribed to the foregoing instrument and acknowledged
to me that he executed the same as the act and deed of
, for the purposes and consideration
expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the
, 1979.
therein
day of
Notary Public in and for Nueces County,
Texas
My commission expires:
. . . .
. _ 1.1
• ••• •••• • . • .
P NA y e 8..Sr•C gffl
Corpus Christi, T,xas
day of
TO THE MEMBERS OF THE CITY COUNCIL
Corpus Christi, Texas
For the reasons set forth in the emergency clause of the foregoing 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, request that you suspend
said Charter rule or requirement and pass this ordinance finally,on the date it
is introduced, or at the present meeting of the City Council.
The Charter rule was
Luther Jones
Edward L. Sample
Dr. Jack Best
David Diaz
Jack K. Dumphy
Betty N. Turner
Cliff Zarsky
The above ordinance was
Luther Jones
Edward L. Sample
Dr. Jack Best
David Diaz
Jack K. Dumphy
Betty N. Turner
Cliff Zarsky
Respectfully,
THE TY OF
CORPUS
suspended
CHRISTI, TEXAS
by the following vote:
passed
by the
following vote:
14976