HomeMy WebLinkAboutC2026-103 - 6/23/2026 - Approved FARM LEASE AGREEMENT WITH
4S FARMS PARTNERSHIP AND ORDNER FARMS
STATE OF TEXAS §
KNOW ALL BY THESE PRESENTS:
COUNTY OF NUECES §
This farm lease agreement("Lease") is entered into this by and between the City of Corpus Christi,
a Texas home-rule municipal corporation ("City"), and 4S Farms Partnership and Ordner Farms
("Lessee"), Texas for-profit corporations, in consideration of the mutual covenants contained in
this Lease.
1. PREMISES. The City leases to Lessee 640.48 acres (the "Premises"), more particularly
as shown as Parcel 2 in the map referenced as "Exhibit A", attached to this Lease and
incorporated herein by reference. The Premises is limited to the description provided in
and the restrictions shown in "Exhibit B," which is attached to this Lease and incorporated
herein by reference.
2. PURPOSE. The purpose of this Lease is to enable Lessee to utilize the Premises for the
farming of crops and for no other purpose. The use of the Premises shall be limited as
laid out in this Lease and as shown in Exhibit A.
3. LEASE TERM. The term of this Lease is for three years and commences upon
October 1, 2026 ("Effective Date" and "Initial Term"). For annual lease payment
purposes, October 1 of every succeeding calendar year following the execution of
this Lease is deemed the anniversary date of the Lease ("Anniversary Date").
4. Beginning on October 1, 2027, and on each Anniversary Date thereafter for the
duration of this lease term, the Lease Payment shall increase by 1% annually of
the initial Lease Payment.
5. LEASE PAYMENT.
a. Upon Effective Date, Lessee must pay the City an annual lease payment of
$76,979.29 which is based on $120.19 per acre x 640.48 acres ("Lease
Payment"). The Lease Payment is due at the beginning of the Lease and on or
before each Anniversary Date. A late fee of$200 will be assessed for each month
payment remains outstanding. Failure to pay late fees may be considered a breach
of this Lease and subject to termination.
b. The Lease Payment must be remitted to:
City of Corpus Christi
P.O. Box 9257
Corpus Christi, TX 78469-9257
C. Lease Payments are not refundable if this Lease is terminated prior to completion
of its full three-year term.
6. In the event Lessee holds over beyond the expiration of the term herein provided with the
consent, express or implied, of the City, any such holdover is a tenancy at sufferance and
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such holdover period will only be from month-to-month and subject to the conditions of
this Lease. Lessee acknowledges and agrees in advance that any such holdover does not
constitute a renewal of this Lease, and any holdover period is subject to Lessee's payment
of a monthly rental amount equal to 1/12 of the last annual Lease Payment.
7. ACCEPTANCE OF PREMISES DISCLAIMER.
a. LESSEE ACKNOWLEDGES THAT IT IS LEASING THE PREMISES "AS IS" WITH
ALL FAULTS AS MAY EXIST ON THE PREMISES AND THAT NEITHER
LESSOR, NOR ANY EMPLOYEE OR AGENT OF LESSOR, HAS MADE ANY
REPRESENTATIONS OR WARRANTIES AS TO THE CONDITION OF SUCH
PREMISES. LESSEE HEREBY WAIVES ANY AND ALL CAUSES OF ACTION,
CLAIMS, DEMANDS, AND DAMAGES BASED ON ANY WARRANTY, EXPRESS
OR IMPLIED, INCLUDING BUT NOT LIMITED TO ANY IMPLIED WARRANTY OF
SUITABILITY FOR A PARTICULAR PURPOSE, ANY AND ALL WARRANTIES OF
HABITABILITY, AND ANY OTHER IMPLIED WARRANTIES NOT EXPRESSLY
SET FORTH IN THIS LEASE.
b. LESSEE ACKNOWLEDGES AND AGREES THAT, UPON LESSEE'S REQUEST
PRIOR TO THE EXECUTION OF THIS LEASE, LESSEE HAS BEEN PROVIDED,
TO ITS SATISFACTION, THE OPPORTUNITY TO INSPECT THE PREMISES
FOR ANY DEFECTS AS TO THE SUITABILITY OF SUCH PROPERTY FOR THE
PURPOSE TO WHICH LESSEE INTENDS TO USE THE PREMISES AND IS
RELYING ON ITS OWN INSPECTION.
C. LESSEE ACKNOWLEDGES THAT ANY AND ALL STRUCTURES AND
IMPROVEMENTS, IF ANY, EXISTING ON THE PREMISES ON THE
COMMENCEMENT DATE OF THIS LEASE ARE ACCEPTED "AS IS" WITH ANY
AND ALL LATENT AND PATENT DEFECTS AND THAT THERE ARE NO
WARRANTIES, EXPRESS OR IMPLIED, BY LESSOR WITH RESPECT TO SUCH
STRUCTURES AND IMPROVEMENTS. LESSEE ACKNOWLEDGES THAT IT IS
NOT RELYING UPON ANY REPRESENTATION, STATEMENT, OR OTHER
ASSERTION BY LESSOR WITH RESPECT TO ANY EXISTING STRUCTURES
OR IMPROVEMENTS BUT IS RELYING ON LESSEE'S EXAMINATION OF THE
SAME.
d. THE CITY, HAVING FEE SIMPLE RIGHTS TO THIS LAND, DOES NOT
WARRANT ITS TITLE TO THE PREMISES AND DOES NOT GUARANTEE
LESSEE'S QUIET POSSESSION OF SAME. LESSEE ACKNOWLEDGES AND IS
AWARE THAT THE PREMISES IS CONTAINED WITHIN A LARGER AREA OF
LAND OWNED BY THE CITY AND CURRENTLY USED FOR ACTIVE AIRPORT
OPERATIONS AND RELATED PURPOSES. THIS LEASE AND THE RIGHTS
AND PRIVILEGES GRANTED LESSEE IN AND TO THE PREMISES ARE
SUBJECT TO ALL COVENANTS, CONDITIONS, RESTRICTIONS, AND
EXCEPTIONS OF RECORD OR APPARENT. LESSEE ACKNOWLEDGES THAT
LESSOR DOES NOT OWN ALL MINERAL AND GAS RIGHTS TO THE
PREMISES, AND LESSEE IS SUBJECT TO ANY EXPLORATORY AND
PRODUCTION RIGHTS OF THE MINERAL OWNERS AND WHICH COULD
PRODUCE DAMAGES TO LESSEE'S LEASEHOLD. NOTHING CONTAINED IN
THIS LEASE MAY BE CONSTRUED TO IMPLY THE CONVEYANCE TO LESSEE
OF RIGHTS IN THE PREMISES THAT EXCEED THOSE OWNED BY THE CITY.
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e. THE PROVISIONS OF THIS SECTION SURVIVE THE EXPIRATION OR
EARLIER TERMINATION OF THIS LEASE.
8. USE AND MAINTENANCE.
a. Lessee shall use the Premises for agricultural purposes only and cannot make any
other use of the Premises without the prior written consent of the City. Lessee shall
take good care of the Premises and its appurtenances and suffer no waste. Lessee
shall keep the Premises in good repair at Lessee's own expense. Lessee shall
observe and obey all applicable federal, state, and local laws, rules, and
regulations and all rules set out by the City for the operation of the Premises. At
the expiration of this Lease, Lessee shall surrender the Premises in as good
condition as the same are now in, natural wear and tear and damage from the
elements only accepted. Lessee will not permit any alcoholic beverages on the
Premises. Lessee agrees to conduct all of Lessee's operations on the leased
premises in a reasonable, efficient, and prudent manner.
b. Lessee agrees to maintain the immediate perimeter surrounding all boundary
fences, including keeping all rock, dirt, and debris free and clear from chain link
fence footer and chain link fence. This obligation includes, but is not limited to,
ensuring proper drainage and preventing the accumulation of material against the
fence structure. Failure to comply may result in termination of the lease and lessee
shall be liable for all costs associated with remediation or repair necessary to
restore the fence and footer to their original condition.
C. In compliance with the Federal Aviation Administration ("FAA") restriction on the
types of crops grown on the Airport and pursuant to Section 18 herein, except as
provided in Exhibit A, Lessee shall not plant sunflower, seeded crops, or cereal
grain crops on the Premises. Lessee may not construct any improvements on the
Premises. Lessee may not use the Premises for storage of equipment or supplies.
d. Lessee shall observe and obey all applicable federal, state, and local laws, rules,
and regulations and all rules set out by the City for the operation of the Premises.
At the expiration of this Lease, Lessee shall surrender the Premises in as good
condition as the same are now in, natural wear and tear and damage from the
elements only accepted. Lessee will not permit any alcoholic beverages on the
Premises. Lessee agrees to conduct all of Lessee's operations on the leased
premises in a reasonable, efficient, and prudent manner.
e. Without limiting the foregoing, Lessee specifically agrees:
1. Chemical Notification. The use of all agricultural chemicals, fertilizers, and
pesticides will be in a lawful, safe, and prudent manner. The Aviation Director
will determine and approve the time and place any aerial or ground chemicals,
fertilizers, and pesticides will be used due to the proximity of the airport and its
employees and the public. Under normal circumstances, the notice of intent to
use agricultural chemicals, fertilizers and pesticides must be provided in writing
no less than five business days prior to use and addressed to:
City of Corpus Christi
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Director of Aviation
1000 International Drive
Corpus Christi TX 78406
Fax: (361) 826-4533
2. Growth Control. Lessee will prevent the growth of and keep the Premises
(including cultivated fields, turn rows, ditches, fence rows, and lands adjacent
to the Premises) free from Johnson grass, Bermuda grass, cockleburs, burdock
plants, and other noxious weeds and undesirable vegetation, and keep the
cultivated portion of the Premises free from all sprouts and stumps.
9. REQUIRED MODIFICATION OR AMENDMENT OF LEASE. If the FAA or its successor
requires modifications or amendments to this Lease as a condition precedent to granting
funds for Airport improvements, Lessee agrees to consent to the modifications or
amendments to this Lease as may be reasonably required for the City to obtain the funds;
provided, however, that Lessee will not be required to change the use of the Premises, or
accept a relocation or reduction in size of the Premises until Lessee and the City have
fully executed an amendment to this Lease that is mutually satisfactory to all parties
regarding any terms or conditions of this Lease affected by said required actions, so
long as this amendment is not unreasonably delayed by Lessee. If Lessee fails to act in
a reasonable time to execute amendments or if no agreement can be reached in a
reasonable time frame, this shall be considered a material breach of this Lease and
subject to termination.
10. FEES, TAXES, & UTILITIES. Lessee shall pay, if applicable to Lessee's leasehold interest
and Lessee's use and business operations at the Premises, all ad valorem taxes, personal
property taxes, licenses, utility fees and charges, and all other fees and taxes required to
be paid during this Lease. Lessee shall pay, at its sole cost and expense, all taxes, fees,
utilities, and charges on or prior to the due date. Within three business days of approval
of this Lease and remittance of the initial Lease Payment, Lessee shall ensure that the
water utility account and any electrical account, if electricity is available and connected at
the Premises, and all other utility account(s) for the Premises are transferred and/or set
up in the Lessee's name and all required deposits paid. Payment by Lessee of all utility
charges must be timely paid when such charges become due and are not permitted to
become delinquent at any time during the term of the Lease.
11. SUBORDINATION TO U.S. AND FAA REQUIREMENTS. This Lease is subordinate to
the provisions of any existing or future agreement between the City and the government
of the United States relating to the operation or maintenance of the Airport, where the
execution of said agreement(s) is required as a condition to the expenditure of federal
funds for the development of the Airport. If the effect of said agreement(s) with the United
States, either under this Section or under Section 8 above, is to remove any or all of the
Premises from the control of Airport or to substantially destroy the value of the Premises,
then this Lease shall terminate immediately without any further obligation on part of City
to Lessee.
12. RECORDKEEPING. Lessee shall keep an accurate book of accounts regarding all
business matters pertaining to the cultivation of the Premises, and these account books
must be open to inspection by the Director upon reasonable demand during the City's
normal business hours.
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13. INSURANCE.
a. Coverages. Lessee shall comply with the insurance requirements in Exhibit C,
attached hereto and incorporated herein by reference.
b. Failure of Lessee. Failure of Lessee to procure and maintain in force the required
insurance coverages constitutes a material breach of the Lease upon which the
City may immediately terminate this Lease if Lessee does not furnish proof of the
required insurance coverages to the City within 10 days of written notice to Lessee.
C. Insurance Coverage Adjustments. The types and amounts of insurance coverage
specified in the Lease is subject to adjustment by the City's Risk Manager.
14. DAMAGE TO CITY OR FRANCHISEE IMPROVEMENTS. Lessee must pay for all
damages to any City or franchisee utility lines and equipment located on the Premises
caused by Lessee's grazing operations and must replace all lines or equipment injured or
destroyed because of Lessee's operations. If damage occurs to any gas, storm,
wastewater, or water line ("City Improvements"), or to any City equipment located on the
Premises, the City's representative will determine the extent of damage and amount of
repairs and/or replacement needed to the City Improvements, and, as determined by the
City's representative, a City gas, storm, wastewater, or water division crew will be brought
in and immediately allowed to make all necessary repairs and/or replacements. An
additional fee will be due for the cost of a City inspector for any portion of a day spent
inspecting construction, maintenance, repair, replacement, or relocation of said utility lines
and equipment pursuant to this paragraph. All costs incurred by City (including labor and
materials) associated with the repairs and/or replacement of the lines and equipment must
be paid by Lessee.
15. ASSIGNMENT AND SUBLEASING. Lessee shall not at any time, without the express
prior written consent of the Director, assign, sublease, or transfer, or permit or participate
in any assignment, sublease, or transfer, of this Lease or any of the rights, powers, or
privileges granted under this Lease. Consent to an assignment or sublease shall not be
unreasonably withheld by City. In the event of an approved assignment or sublease,
Lessee shall notify any assignee or sublessee that they shall be liable under all terms,
conditions, and obligations of this Lease. Lessee further acknowledges and agrees that,
notwithstanding any approved assignment or sublease, Lessee shall also remain liable
under all terms, conditions, and obligations of the Lease unless released in writing by the
Director.
16. HUNTING. This Lease does not grant Lessee any rights to hunt on the Premises, and
Lessee may not hunt nor allow any other party to hunt on the Premises without the express
written consent of the Director.
17. SECURITY.
a. Lessee, its officers, employees, agents, contractors, and invitees must comply with
all applicable federal and local security regulations, as the same may be amended.
Lessee covenants to indemnify and hold harmless City, its
officers, and employees from any charges, fines, or penalties that
may be assessed or levied by the FAA or Transportation Security
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Administration by reason of the negligent or intentional failure of
Lessee, its officers, employees, agents, contractors, or invitees
to comply with security regulations, regardless of whether the
fine, charge, or penalty is levied against the City or the Lessee.
b. Each of Lessee's employees needing access to a restricted area (must wear a
security badge while in any restricted area. Lessee will pay an issuance fee for
each badge and a replacement fee for each lost security badge. The Aviation
Director may also require the payment of a reasonable deposit fee for each
security badge issued consistent with fees charged to other tenants at the Airport.
Lessee must notify the Aviation Director immediately after any employee of
Lessee who was issued a security badge is terminated or loses a badge. Lessee
and Lessee's employees must comply with all City and federal security
regulations and requirements.
18. FEDERAL CODE REQUIREMENTS FOR EQUIPMENT USE. Lessee covenants to
comply with the notification and review requirements set out in the FAR, Part 77, as
amended [14 CFR Part 77, as amended], if Lessee plans to use equipment in its operation
that requires notification as outlined in this regulation.
19. CONTROL OF STRUCTURES AND EQUIPMENT. Lessee shall not erect nor permit the
erection of any structure, antenna, or building, nor permit the growth of any tree on the
Premises, which has its highest point above a mean sea level elevation established by
FAA and the City as a height limitation on said structure, antenna, building, or object.
The City may enter the Premises and remove the encroaching structure, antenna,
building, or object without notice and at Lessee's expense plus an additional
administrative charge of 15%.
20. AERIAL APPROACHES. The Aviation Director may take any action necessary to protect
the Airport's aerial approaches against obstruction, including the right to prevent Lessee
from erecting or permitting to be erected any building or structure on or adjacent to the
Airport which, in the Aviation Director's opinion, would limit the usefulness of the Airport
or constitute a hazard to aircraft.
21. RIGHT OF OVERFLIGHT. The City hereby reserves, for the use and benefit of the public,
a right of flight for the passage of aircraft above the surface of the Premises together with
the right to cause in the airspace noise as may be inherent in the operation of aircraft now
known or hereafter used for navigation thereof or flight in the air, and using the airspace
for landing at or taking off from, or operating on, the Airport.
22. HAZARDOUS SUBSTANCES.
a. For the purposes of this Lease, "hazardous substance or material" means and
refers to one or more of the following:
1. Asbestos;
2. Any substance, material or waste defined as a "hazardous waste"
pursuant to Section 1004 of the Resource Conservation and Recovery Act
(42 U.S.C. Section 6901, et. seq.);
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3. Any substance, material or waste defined as a "hazardous substance"
pursuant to Section 101 of the Comprehensive Environmental Response,
Compensation and Liability Act (42 U.S.C. Section 9601, et. seq.);
4. Any substance, material or waste defined as a "regulated substance"
pursuant to Subchapter IX of the Solid Waste Disposal Act (42 U.S.C.
Section 6991, et. seq.); or
5. Any substance, material or waste which is reasonably considered by the
City to pose an actual or potential threat to persons or property in, around,
or on the Premises.
b. Lessee shall comply with all environmental laws, rules, regulations, orders, and
permits applicable to the use of the Premises and improvements including, but not
limited to, required National Pollutant Discharge Elimination System Permits and
all applicable laws relating to the use, storage, generation, treatment,
transportation, or disposal of hazardous or regulated substances. Except for the
hazardous substances governed by and transported in full compliance with the
transportation laws of the state or federal government, Lessee must not knowingly
use, store, generate, treat, transport, or dispose of any hazardous or regulated
substances, materials, or waste on or near the Premises without the Aviation
Director's prior written approval and without first obtaining all required permits and
approvals from all authorities having jurisdiction over the operations conducted on
the Premises.
C. If Lessee determines that a threat to the environment including, but not limited to,
a release, discharge, spill, or deposit of a hazardous substance or regulated
substance has occurred or is occurring which affects or threatens to affect the
Premises or the persons, structures, equipment, or other property upon the
Premises or the Airport, Lessee must immediately notify the Aviation Director as
required by law or regulation by verbal report in person or by telephone, to be
promptly confirmed in writing. Lessee must cooperate fully with the Aviation
Director in promptly responding to, reporting, and remedying a threat to the
environment including, without limitation, a release or threat of release of a
hazardous or regulated substance into the drainage system, soil, ground, or
surface water, waters, or atmosphere in accordance with applicable law or as
authorized or approved by any federal, state, or local agency having authority over
environmental matters.
d. Lessee shall keep a readily accessible file of Materials Safety Data Sheets
("MSDS") for each hazardous material or substance on the Premises or
transported, in accordance with federal and state transportation laws, which file
must be posted and immediately available to any Airport employee who responds
to a report of a discharge of a hazardous substance or material on the Premises.
Lessee will require any operator of the facilities on the Premises to make best
efforts to determine which hazardous substance or material was accidentally
discharged and ensure that the MSDS sheet is available for the first responders to
the Premises.
e. Lessee will cause prompt remediation and the payment of all costs associated with
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any action or inaction of Lessee that directly or indirectly prevents the City, acting
through the Airport, from materially conforming to all then applicable environmental
laws, rules, regulations, orders, or permits relating to the Premises. The rights and
obligations set forth in this section shall survive the expiration or earlier termination
of this Lease.
f. Lessee shall furnish to the Director, within five days of receipt by Lessee, copies
of any and all notices or correspondence directed to Lessee or any other party at
the Premises from any governmental entity, other entity, or person indicating a
violation or possible violation of any laws, rules, or regulations including, without
limitation, any law, rule, or regulation regarding hazardous materials or substances
(as such term is defined in this Lease).
23. NO DEBTS. Lessee shall not incur any debts or obligations on the credit of the City
during the term of this Lease.
24. COMPLIANCE WITH STATE AND FEDERAL LAWS. The following provisions are in this
contract for compliance with state and federal law, and the City does not opine on their
validity or enforceability. Lessee shall bear the entire sole burden for complying with any
of these clauses. Prior to the enforcement of any of the following clauses, the City will give
at least 30 days notice of alleged violation thereof and an opportunity for the Lessee to be
heard concerning the alleged violation, effect thereof on the City, and proposed remedial
measures:
• Lessee warrants that it is and will continue to be an equal opportunity employer and
hereby covenants that no employee or customer will be discriminated against because
of race, religion, sex, age, disability, creed, color, or national origin.
• Lessee shall provide all services and activities required to comply with the Civil Rights
Act of 1964, as amended, the Rehabilitation Act of 1973, Public Law 93-1122, Section
504, and with the provisions of the Americans with Disabilities Act of 1990, Public Law
101-336 [S.933].
• Lessee agrees to comply with Tex. Gov't Code § 2252.908 and submit Form 1295 to
the City with the signed agreement. The Parties agree that the City is not responsible
for the information contained in Form 1295.
• In accordance with Tex. Gov't Code §2252.909, Lessee must include in each contract
for the construction, alteration or repair of an improvement to this leased property a
condition that the contractor execute a payment bond that conforms to Subchapter I,
Chapter 53, Property Code and a performance bond equal to the amount of the
contract and conditioned on the faithful performance of the contractor's work in
accordance with the plans, specifications and contract documents. Lessee must
provide the City with a notice of commencement at least 90 days prior to start of
construction, alteration or repair that complies with Texas Gov't Code § 2252.909.
25. NOTICES.
a. All notices, demands, requests or replies provided for or permitted by this Lease
must be in writing and delivered by any one of the following methods: (1) by
personal delivery; (2) by deposit with the U.S. Postal Service as certified mail,
return receipt requested, postage prepaid; or (3) by deposit with an overnight
express delivery service, and sent to the following address:
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If to City:
City of Corpus Christi
Attn: Aviation Director
1000 International Drive
Corpus Christi, TX 78406
Phone: (361) 826-1292
If to Lessee:
4S Farms Partnership
Attn: Scott Suggs
2475 County Road 69
Robstown, TX 78380
Phone: (361) 816-8811
Ordner Farms
Attn: Scott Ordner
2475 County Road 69
Robstown, TX 78380
Phone:
b. Notice deposited with the U.S. Postal Service in the manner described above will
be deemed effective two business days after deposit, postage prepaid. Notice by
overnight express delivery service will be deemed effective one business day after
delivery to the overnight express carrier, with proof of receipt.
C. Either party may notify the other, in the manner described above, of a change of
address. Any such change of address must be sent within 10 days of the effective
date of the change.
26. INDEMNITY. LESSEE WILL FULLY INDEMNIFY, HOLD HARMLESS,
AND DEFEND THE CITY, ITS OFFICERS, EMPLOYEES, AND
AGENTS ('INDEMNITEES') FROM AND AGAINST ANY AND ALL
LIABILITY, DAMAGE, LOSS, CLAIMS, DEMANDS, AND ACTIONS
OF ANY NATURE WHATSOEVER ON ACCOUNT OF PERSONAL
INJURIES (INCLUDING, WITHOUT LIMITATION ON THE
FOREGOING, WORKERS' COMPENSATION AND DEATH CLAIMS),
OR PROPERTY LOSS OR DAMAGE OF ANY KIND WHATSOEVER
WHICH MAYARISE OUT OF OR INANYMANNER BE CONNECTED
WITH, OR IS CLAIMED TO ARISE OUT OF OR BE IN ANY WAY
CONNECTED WITH, THE PERFORMANCE OF THIS LEASE BY
LESSEE. LESSEE SHALL, AT LESSEE'S OWN COST AND
EXPENSE, INVESTIGATE ALL SUCH CLAIMS AND DEMANDS,
ATTEND TO THEIR SETTLEMENT OR OTHER DISPOSITION,
DEFEND ALL ACTIONS BASED THEREON WITH COUNSEL
SATISFACTORY TO THE CITYATTORNEY, PAYALL CHARGES OF
ATTORNEYS, AND PAY ALL OTHER COSTS AND EXPENSES OF
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ANY KIND, INCLUDING EXPERT WITNESS FEES, ARISING FROM
ANY SUCH LIABILITY, DAMAGE, LOSS, CLAIMS, DEMANDS, AND
ACTIONS.
27. DEFAULT AND TERMINATION.
a. The City reserves the right to terminate this Lease in the event that the Leased
Premises, or any portion thereof, are required for either aeronautical use or non-
aeronautical use. In such an event, the City shall provide the Lessee with 180 days
written notice of termination. Upon the expiration of the notice period, the Lease
shall terminate and the Lessee shall vacate the premises. The Lessee shall have
no claim against the Lessor for compensation, damages, or loss of goodwill as a
result of such termination.
b. If Lessee defaults in performance of any of the promises or covenants contained
herein, City may terminate this Lease following written notice to Lessee of the
default and a reasonable opportunity to cure. Upon the occurrence of any uncured
event of default, the City may, at its option, in addition to any other remedy or right
given hereunder or by law, give notice to Lessee that this Lease terminates upon
the date specified in the notice. Once terminated, the City has the right, without
further notice to Lessee, to re-enter the Premises and remove all persons
therefrom without being deemed guilty in any manner of trespass and also without
prejudice to any remedies against Lessee for arrears of rent or breach of covenant.
C. In the event that any rent is due and unpaid under the Lease, the City may resume
possession of the Premises and relet the same for the remainder of this Lease
term at the best rent the City may obtain, for the account of the Lessee, who must
pay any resulting deficiency; and the City will have a lien as security upon all crops,
goods, wares, chattels, implements, fixtures, furniture, tools, and other personal
property which are located or were placed on the Premises, which lien is
cumulative of and in addition to any statutory landlord's lien created by law.
d. In the event Lessee has paid the full cash rent at the start of the Lease or any
applicable annual Anniversary Date, Lessee shall have the right to harvest any
existing crops that have been planted prior to the termination of the Lease.
e. The failure of City or Lessee to insist on strict performance of any of the terms,
covenants, or conditions of this Lease is not a waiver of any right or remedy that
City or Lessee may have and is not a waiver of the right to require strict
performance of all the terms, covenants and conditions of the Lease thereafter nor
is deemed to be a waiver of any remedy for the subsequent breach or default of
any term, covenant or condition of the Lease.
28. REMOVAL OF PERSONAL PROPERTY. It is Lessee's responsibility to remove its
personal property of every kind and type from the Premises prior to termination or
expiration of the Lease. Lessee agrees that any personal property remaining on the
Premises after the termination or expiration of the Lease automatically becomes the City's
property without any further notice, action, or process of law for disposition by the City as
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the City deems appropriate in the Director's sole discretion, without compensation to
Lessee. Lessee shall also be invoiced for the City's costs to remove Lessee's personal
property from the Premises after termination or expiration of the Lease, and Lessee shall
pay the invoice within 30 days of receipt.
29. CONDITION OF PROPERTY UPON EXPIRATION OR TERMINATION. Lessee
covenants and agrees that, upon expiration or any earlier termination of this Lease,
however caused, Lessee shall quit and surrender the Premises and perform all repairs
reasonably necessary to restore the Premises to the same condition it was in at the time
this Lease was entered into, reasonable wear and tear, acts of God, fire and flood damage
or destruction where Lessee is without fault, excepted.
30. RIGHTS OF THE CITY.
a. The City reserves the right to sell, use, or lease for a governmental or public use
different from the present use all or any part of the Premises at any time during the
term of this Lease. Should the Premises be sold, used, or leased before expiration
of this Lease and the purchaser or lessee is not willing to take the property subject
to this Lease and demands immediate possession, then the Lessee agrees to
vacate within 30 days following receipt of the notice to vacate. Should it become
necessary for Lessee to vacate in case of a sale or lease, then, the City will pay
Lessee, for the Premises or portion thereof vacated, the following amounts, to-wit:
a proportionate share of the then-applicable annual Lease Payment paid, which
share is determined by dividing (i) the number of days of the term remaining after
vacation by Lessee by (ii) the total number of days in the term, and multiplying the
resulting percentage by the annual Lease Payment amount paid by Lessee.
b. The City reserves and excepts from this Lease those easements reasonably
necessary for the purpose of assigning, exploring, prospecting, mining, drilling,
developing, producing, saving, transporting, storing, treating, removing, and
owning the reserved minerals and oil and gas in the Premises to the extent such
easements are implied under Texas common law to allow access to severed
estates.
C. City retains the right to use or cross the Premises with utility lines and easements.
City may exercise these rights without compensation to Lessee for damages to the
Premises from installing, maintaining, repairing, or removing the utility lines and
easements. City must use reasonable judgment in locating the utility lines and
easements to minimize damage to the Premises.
d. It is understood and agreed by Lessee that the City retains sole authority to
negotiate settlement of any and all claims for damage by reason of activities in
connection with the operation, development, and exploration for oil, gas, and other
minerals on the Premises. Lessee shall promptly notify the City of any and all
damages to the Premises and/or crops growing thereon that may be occasioned
by operation, development, or exploration for oil, gas, or other minerals, or that
may be occasioned by any other activity during the Lease term, which Lessee
observes, learns of, or has reason to be made aware of any such damage.
Page 11 of 17
e. The City, by and through its officials, officers, employees, and agents, has the right
at all times during the Lease term to ingress and egress to the Premises for the
purpose of conducting any business incident to the activities of the City and for
purposes of inspection, repair, fire or police action, and enforcement of the terms
of this Lease, and includes the regular and necessary operation of vehicles and
equipment on the shared roadways bisecting and crossing the Premises.
31. CONDEMNATION. If the whole or a substantial part of the Premises are taken or
condemned by the City, or any entity with legal authority to exercise eminent domain
rights, for any public use or purpose, then and in that event, the term of this Lease shall
cease and terminate from the date when possession of the part or whole so taken or
condemned is required for such use or purpose. If less than a substantial part of the
Premises are taken or condemned by the City and, as a result thereof, Lessee believes
the ability to continue the purpose of this Lease has been eliminated, the question of a
possible partial Lease Payment refund, if any, may be submitted in writing by Lessee to
the City for consideration.
32. DISCLOSURE OF INTERESTS AND STATE OF TEXAS FORMS. Lessee agrees to
comply with City of Corpus Christi Ordinance No. 17112 and complete the Disclosure of
Interests form as part of this Lease contract. Lessee agrees to comply with Texas
Government Code Section 2252.908 and complete Form 1295 Certificate of Interested
Parties as part of this Lease contract. For more information, please review the information
on the Texas Ethics Commission's website at https://www.ethics.state.tx.us. Lessee also
agrees to comply with Chapter 176 of the Texas Local Government Code and file Form
CIQ with the City Secretary's Office, if required. For more information and to determine if
you, as Lessee, need to file a Form CIQ, please review the information on the City
Secretary's website at http://www.cctexas.com/government/city-secretary/conflict-
disclosure/index.
33. MODIFICATIONS. No changes or modifications to this Lease may be made, nor any
provision waived, unless in writing and signed by a person authorized to sign lease
agreements on behalf of each respective party.
34. COMPLIANCE WITH LAWS.
a. General. Lessee covenants to promptly observe, comply with and execute, and
shall cause any sublessee to promptly observe, comply with and execute, the
provisions of any and all present and future governmental laws, ordinances, rules,
regulations, requirements, orders and directions applicable to the use and
occupancy of the Premises. A material breach of this covenant, which is not
remedied within any permitted cure period, may be cause for City's exercising its
rights under the Lease. During any period of Lessee's good faith challenge to any
such laws, ordinances, rules, regulations, requirements, orders and directions in a
court of competent jurisdiction, Lessee's inaction shall not be deemed a breach of
this Lease.
b. Federal. Lessee shall comply and shall require any sublessee to comply with all
applicable federal laws, rules, and regulations including, without limitation, the
Drug Free Workplace Act, the Violence in the Workplace Act, the Americans with
Page 12 of 17
Disabilities Act, and any other acts the U.S. Congress passes that apply to the
uses and operations at the Premises.
C. State. Lessee shall comply with all applicable laws, rules, and regulations of the
State of Texas.
d. Local. Lessee shall comply with all applicable City ordinances, and rules and
regulations promulgated by the Aviation Director.
35. RELATIONSHIP OF THE PARTIES. This Lease establishes a landlord/tenant
relationship, and none other, and this Lease must be construed conclusively in favor of
that relationship. In performing this Lease, both City and Lessee will act in an individual
capacity and not as agents, representatives, employees, employers, partners, joint
venturers, or associates of one another. The employees or agents of either party shall not
be, nor be construed to be, the employees or agents of the other party for any purpose
whatsoever.
36. GENERAL PROVISIONS.
a. Mineral Rights. The City expressly reserves all water, gas, oil, and mineral rights
in and under the soil beneath the Premises in which it holds an interest and
reserves the right to conduct or provide for testing and removal of any such City-
owned water, gas, oil, or minerals from the Premises.
b. No Waiver of Forfeiture. Any failure or neglect of the City or Lessee at any time to
declare a forfeiture of this Lease for any breach or default whatsoever hereunder
does not waive City's or Lessee's right thereafter to declare a forfeiture for like or
other or succeeding breach or default.
C. Force Majeure. Neither City nor Lessee will be deemed to be in breach of this
Lease if either is prevented from performing any of its obligations under this Lease
by reason of force majeure. "Force Majeure" for the purposes of this Lease means
any prevention, delay, or stoppage due to strikes, lockouts, labor disputes, acts of
God to include severe inclement weather and sustained periods of rain or snow,
civil commotion, fire or other casualty, and other causes beyond the reasonable
control of the party obligated to perform and claiming the force majeure. All of the
foregoing events excuse the performance by either party for a period equal to any
prevention, delay, or stoppage, including the obligations imposed with regard to
commencement or payment of rental and other charges to be paid by Lessee
pursuant to this Lease and the obligation of City to deliver the Premises.
d. Rules and Regulations. Lessor has adopted minimum operational standards
("Minimum Standards") and rules and regulations ("Rules and Regulations"), which
shall govern Lessee in the use of the Premises and all common facilities, a copy
of each of which has been furnished to the Lessee and are incorporated herein by
reference. Lessee agrees to comply fully at all times with these governing
documents. Lessor, in its sole discretion, shall have the right to amend, modify,
and alter these Minimum Standards and Rules and Regulations from time to time
in a reasonable manner and may introduce other regulations as deemed
Page 13 of 17
necessary for the purpose of assuring the safety, welfare, convenience, and
protection of property of Lessor, Lessee, and all other tenants and customers of
the Airport; provided, however, that Lessor shall give Lessee reasonable advance
notice of any such amendments, modifications, or alternations of the Minimum
Standards and Rules and Regulations.
e. Venue. Venue for any action brought under this Lease lies in Nueces County,
Texas, where the Lease was executed and will be performed.
f. No Third-Party Benefit. No provision of this Lease creates a third-party claim
against the City or the Lessee beyond that which may legally exist in the absence
of any such provision.
g. Permits, Licenses, and Taxes. Lessee shall procure all permits and licenses, pay
all charges, fees, and taxes including, but not limited to, all payroll taxes, Medicare
taxes, FICA taxes, unemployment taxes, and all other related taxes according to
Internal Revenue Circular E "Employer's Tax Guide," Publication 15, as it may be
amended, and give all notices and respond to all communications that are
necessary and incident to the due and lawful conduct of business at and
occupancy of the Premises by Lessee. Lessee must provide proof of payment of
any tax within 10 days after the Director's written request for the same.
h. Trash and Refuse. Lessee must arrange for the collection and lawful disposal of
all trash and other refuse resulting from operations on the Premises; must provide
and use suitable, sealed fireproof receptacles approved by the Aviation Director
for all trash and other refuse generated by the use of the Premises; must prohibit
the piling of boxes, barrels, or other similar items in or within view from a public
area; and must pay, or cause to be paid, the costs associated with trash removal
and disposal.
i. Delegation. Any obligations of the Lessee required by this Lease may be
delegated to any approved sublessee by the terms of the sublease agreement
between the parties, provided, however, that any such delegation shall not relieve
Lessee of its liability, responsibilities, and obligations under this Lease.
j. Publication. Lessee must pay all newspaper publication costs, if any, for this Lease
as required by the City Charter.
37. SEVERABILITY. If, for any reason, any section, paragraph, subdivision, clause, provision,
phrase, or word of this Lease or the application hereof to any person or circumstance is,
to any extent, held illegal, invalid, or unenforceable under present or future law or by a
final judgment of a court of competent jurisdiction, then the remainder of this Lease, or the
application of said term or provision to persons or circumstances other than those as to
which it is held illegal, invalid, or unenforceable, will not be affected thereby, for it is the
definite intent of the parties to this Lease that every section, paragraph, subdivision,
clause, provision, phrase or word hereof be given full force and effect for its purpose. To
the extent that any clause or provision is held illegal, invalid, or unenforceable under
present or future law effective during the term of this Lease, then the remainder of this
Lease is not affected thereby, and in lieu of each such illegal, invalid, or unenforceable
Page 14 of 17
clause or provision, a clause or provision, as similar in terms to such illegal, invalid, or
unenforceable clause or provision as may be possible and be legal,valid, and enforceable,
will be added to this Lease automatically.
38. BINDING AGREEMENT. It is mutually understood and agreed that the covenants,
conditions, and provisions contained in this Lease to be performed by the respective
parties are binding on the parties and their respective successors, assigns, and heirs.
39. ENTIRETY CLAUSE. This Lease and the exhibits incorporated and attached hereto
constitute the entire agreement between the City and Lessee for the use granted. All other
agreements, promises and representations with respect thereto, unless contained in this
Lease, are expressly revoked, as it is the intention of the parties to provide for a complete
understanding within the provisions of this document, and the exhibits incorporated and
attached hereto, the terms, conditions, promises, and covenants relating to Lessee's use
of the Premises.
Signatures on next page.
Page 15 of 17
LESSOR:
CITY OF CORPUS CHRISTI
&rucesty-be-La�jarza
Emesto De La Garza(Jrl 7.2026 15 16 55 CDT)
Assistant City Manager
07/07/2026
Date
ATTEST:
C=r6 033143 AUTHORIZED
Rebecca Huerta, City Secretary BY COUNCIL " )(P ,
07/08/2026 R C-}/S(
Date SECRETARY
Approved as to legal form: 07/06/2026
...•., .'.a(Jul 6 2026 09 43 04 CDT)
Assistant City Attorney,
For Miles Risley, City Attorney
LESSEE:
4S FARMS PARTNERSHIP ORDNER FARMS
'rarye& g1
Shane Suggs Jun 29.2026 17 16.41 CDT) Scott (Jun 70.2026 06:25.22 CDT)
Shane Suggs, Scott Ordner,
06/29/2026 06/30/2026
Date Date
I
Page 16 of 17
I
Exhibits:
Exhibit A - Map of Premises
Attachment B - Scope of Lease
Attachment C - Insurance Requirements
Y ROMTOW -.wnv 44 4 ANESTEXAS HIGHWAY 44 (4 LANES) -
AIRPORT SECURITY PERIMET
PARCEL No. 2 (4S Farms&Ordner I
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NOTE:
I,' A 10 Feet WIDE SECTIONAL
.-a
PERIMETER ROAD,DRAINAGE S
_ AOA FENCE SHALL BE CLEARED
TIa3dH MLn CE.' l-FI +nYT.V... h 3 _ \`. PEAR E
FAA f -, FARMING ACTIVITIES AND MAIN',
"SR"s E f� PROVIDE ACCESS FOR CCIA PEI
PAKCG 1-L
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;212.8 AC -20.70 AC
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\\\ - PARCEL 16
N EXHIBIT
�3 CC'�iA=L 4S FARMS & ORDNER FARMS AGRICULTURAL
Chrsti
International Aire
s port Not to Scale Sheet No.1 of
Exhibit B
Scope of Lease
1.1. General Requirements
The Corpus Christi International Airport (CCIA) possess agricultural and grazing land,
which is located at 1000 International Drive, Corpus Christi,Texas.A significant
portion of land remains unimproved and available for agricultural and grazing use.
1.2. Scope of Lease
The Corpus Christi International Airport possess 1,311.54 acres of land on airport
property, which is available for lease. Out of 1,311.54 acres, approximately 1,282.81
acres is available for agricultural and approximately 28.73 is available for cattle
grazing. Parcel description shown in Exhibit A, Drainage ditch layout shown in Exhibit
B.
A. Farm Land
Parcel 2
The parcel as shown in Exhibit A is approximately 640.48 acres of land and
all the acres are outside the boundaries of Airport security fence.
B. Farm Land Lease Restriction
1. No crops shall be allowed along the side of runway 13-31 closer than 530'from the
runway centerline
2. No crops shall be allowed along the side of runway 18-36 closer than 530'from the
runway centerline.
3. No crops shall be allowed in the runway approach areas closer than 1 000'from the
runway end.
4. No crops shall be allowed within 130' of the taxiway centerline.
5. Crops shall not be planted closer than 10 feet from the perimeter fence, access
roads, and drainage ditches.
6. Crops shall not block the line of sight between runways (mid-point to mid-point)
7. Aerial application of oil based product of any kind is prohibited. Automated
Weather Observation System (AWOS) sensors subject to contamination
8. All equipment and hay bales must be moved back adjacent to the nearest
perimeter road at the end of each workday.
9. Cotton, Corn and Wheat are acceptable crops subject to harvesting prior to Bird
migration season. Bird Migration season generally runs from Mid-Feb ru arythrough
May and early September through December.
C.Grazing Land—Parcel 3
The grazing land as shown in Exhibit A is available for lease is approximately 28.73
acres; and is outside the boundaries of the Airport security fence.
EXHIBIT 5-A
INSURANCE REQUIREMENTS
L CONTRACTOR'S LIABILITY INSURANCE
A. Contractor must not commence work under this agreement until all insurance required has been obtained
and such insurance has been approved by the City. Contractor must not allow any subcontractor Agency
to commence work until all similar insurance required of any subcontractor Agency has been obtained.
B. Contractor must furnish to the City's Risk Manager and Contract Administer one (1) copy of Certificates
of Insurance (COI) with applicable policy endorsements showing the following minimum coverage by an
insurance company(s) acceptable to the City's Risk Manager. The City must be listed as an additional
insured on the General liability and Auto Liability policies by endorsement, and a waiver of subrogation
is required on all applicable policies. Endorsements must be provided with COI. Project name and or
number must be listed in Description Box of COI.
TYPE OF INSURANCE MINIMUM INSURANCE COVERAGE
Commercial General Liability Including: $1,000,000 Per Occurrence
1. Commercial Broad Form
2. Premises—Operations
3. Products/ Completed Operations
4. Contractual Liability
5. Independent Contractors
6. Personal Injury-Advertising Injury
PERSONAL PROPERTY INSURANCE Lessee, at their own expense, shall be responsible for
insuring all owned, leased or rented personal property.
C. In the event of accidents of any kind related to this agreement, Contractor must furnish the Risk Manager
with copies of all reports of any accidents within 10 days of the accident.
II. ADDITIONAL REQUIREMENTS
A. Applicable for paid employees, Contractor must obtain workers' compensation coverage through a
licensed insurance company.The coverage must be written on a policy and endorsements approved by the
Texas Department of Insurance. The workers' compensation coverage provided must be in an amount
sufficient to assure that all workers' compensation obligations incurred by the Contractor will be promptly
met.
B. Contractor shall obtain and maintain in full force and effect for the duration of this Contract, and any
extension hereof, at Contractor's sole expense, insurance coverage written on an occurrence basis, by
companies authorized and admitted to do business in the State of Texas and with an A.M. Best's rating of
no less than A-VII.
C. Contractor shall be required to submit a copy of the replacement certificate of insurance to City at the
address provided below within 10 days of the requested change. Contractor shall pay any costs incurred
resulting from said changes. All notices under this Article shall be given to City at the following address:
City of Corpus Christi
Attn: Risk Manager
P.O. Box 9277
Corpus Christi, TX 78469-9277
D. Contractor agrees that with respect to the above required insurance, all insurance policies are to
contain or be endorsed to contain the following required provisions:
• List the City and its officers, officials, employees, volunteers, and elected representatives as additional
insured by endorsement, as respects operations, completed operation and activities of, or on behalf of,the
named insured performed under contract with the City, with the exception of the workers' compensation
policy;
• Provide for an endorsement that the "other insurance" clause shall not apply to the City of Corpus Christi
where the City is an additional insured shown on the policy;
• Workers' compensation and employers' liability policies will provide a waiver of subrogation in favor of
the City; and
• Provide 30 calendar days advance written notice directly to City of any, cancellation, non-renewal,
material change or termination in coverage and not less than 10 calendar days advance written notice for
nonpayment of premium.
E. Within 5 calendar days of a cancellation, non-renewal, material change or termination of coverage,
Contractor shall provide a replacement Certificate of Insurance and applicable endorsements to City. City
shall have the option to suspend Contractor's performance should there be a lapse in coverage at any time
during this contract. Failure to provide and to maintain the required insurance shall constitute a material
breach of this contract.
F. In addition to any other remedies the City may have upon Contractor's failure to provide and maintain any
insurance or policy endorsements to the extent and within the time herein required,the City shall have the
right to order Contractor to remove the exhibit hereunder, and/or withhold any payment(s) if any, which
become due to Contractor hereunder until Contractor demonstrates compliance with the requirements
hereof.
G. Nothing herein contained shall be construed as limiting in any way the extent to which Contractor may be
held responsible for payments of damages to persons or property resulting from Contractor's or its
subcontractor's performance of the work covered under this agreement.
H. It is agreed that Contractor's insurance shall be deemed primary and non-contributory with respect to any
insurance or self insurance carried by the City of Corpus Christi for liability arising out of operations
under this agreement.
L It is understood and agreed that the insurance required is in addition to and separate from any other
obligation contained in this agreement.
2026 Insurance Requirements
Ins. Req. Exhibit 5-A
Leases of City Property—Leases of City Real Property
01/01/2026 Risk Management—Legal Dept.
260610 Agricultural Lease - 4S Farms
Partnership and Ordner Farms - 640.48 acres
Final with Exhibits
Final Audit Report 2026-07-08
Created: 2026-06-26
By: Teresa Martinez(teresam@corpuschristitx.gov)
Status: Signed
Transaction ID: CBJCHBCAABAAacicwgSCdYZFoEdjReQ-fosmeNpL1glG
"260610 Agricultural Lease - 4S Farms Partnership and Ordner
Farms - 640.48 acres Final with Exhibits" History
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