HomeMy WebLinkAbout15372 ORD - 02/20/1980Z_,,•Ba
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AN ORDINANCE
REPEALING ORDINANCE NO. 14811, AND AUTHORIZING THE CITY
MANAGER TO ACCEPT AND APPROVE AN ASSIGNMENT OF LEASE FROM
ROGER L. GAULT, D/B/A GAULT AVIATION, TO AIR ASSOCIATES,
INC., AND AUTHORIZING THE CITY MANAGER TO EXECUTE A MODI-
FICATION OF LEASE AGREEMENT WITH CORPUS CHRISTI BANK AND
TRUST COMPANY (TRUSTEE), AND AIR ASSOCIATES, INC., COVERING
COMMERCIAL HANGARS AND FIXED BASE AVIATION LEASE PLOTS AT
THE CORPUS CHRISTI INTERNATIONAL AIRPORT, AND PROVIDING
FOR A FIVE (5) YEAR LEASE OF PORTIONS OF THE TRANSIENT APRON
AND FOR A NEW THIRTY (30) YEAR LEASE OF THE ASSIGNED AND
LEASED PREMISES UPON COMPLIANCE WITH CITY CHARTER ARTICLE
VIII, SECTION 2(c) BY AIR ASSOCIATES, INC., ALL AS SHOWN
AND MORE FULLY SET FORTH IN THE MODIFICATION OF LEASE
AGREEMENT, A SUBSTANTIAL COPY OF WHICH IS ATTACHED HERETO
AND MADE A PART HEREOF, MARKED EXHIBIT "1".
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
TEXAS:
SECTION 1. That Ordinance No. 14811, authorizing an extension of the
Gault Aviation Fixed Base Operator and Hangar Lease at Corpus Christi International
Airport is hereby repealed in that said lease has not been executed by Roger L.
Gault, d/b/a Gault Aviation, who desires now to assign his leasehold interests
at said airport.
SECTION 2. That the City Manager is hereby authorized to accept an
assignment of lease from Roger L. Gault d/b/a Gault Aviation, to Air Associates,
Inc., covering a commercial hangar and fixed base aviation lease plot at the
Corpus Christi International Airport, all as more fully described in Part I of
the modification of lease, a substantial copy of which is attached hereto and
made a part hereof, marked Exhibit 1.
SECTION 3. That the City Manager is hereby authorized to execute a
modification of lease agreement with Corpus Christi Bank and Trust Company
(Trustee) and Air Associates, Inc., covering commercial and fixed base aviation
lease plots at the Corpus Christi International Airport, including a five (5)
year lease of certain airport properties in addition to those leased by Corpus
Christi Bank and Trust Company, and assigned to Gault Aviation, and providing
for a new thirty (30) year lease to Air Associates, Inc., upon its compliance
with Article VIII, Section 2(c) of the City Charter, all as shown and more
fully set forth in the modification of lease agreement, a substantial copy of
which is attached hereto and made a part hereof, marked Exhibit 1.
15372
MODIFICATION OF LEASE
STATE OF TEXAS
COUNTY OF NUECES j
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, 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 July 14, 1960, Trustee, as Lessee from the City, assigned
to Gault Aviation, 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, said lease agreement was later amended an July 14, 1960,
February 14, 1961. May 27, 1964, May 25, 1966 and November 15, 1966; and
WHEREAS, by Ordinance No. , passed and approved by the City
Council on , 1980, the City approved, subject to certain conditions,
an assignment of the lease from Gault Aviation to Air Associates, Inc., a
Minnesota corporation, hereinafter referred to as "Associates"; 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 and other premises located on the airport;
NOW, THEREFORE, for good and valuable consideration, the following
Hangar and Fixed Base Operator's Lease is hereby entered into by and between
the parties hereto in complete substitution for the previous lease assignment,
as heretofore amended:
Ex« g .
PART I
HANGAR AND FIXED BASE OPERATOR'S LEASE AND ASSIGNMENT OF LEASE
This Part I lease and assignment of lease is entered into on the day
and year below stated between Roger L. Gault, d/b/a Gault Aviation of Nueces
County, Texas, hereinafter called "Assignor", Air Associates, Inc., a Minnesota
corporation qualified to do business in Texas, hereinafter called "Associates" and
"Assignee" in this Part I, Corpus Christi Bank and Trust Company, hereinafter
called 'Trustee", and the City of Corpus Christi, a home rule city situated in
Nueces County, Texas, hereinafter called "City", upon these terms performable
in Nueces County, Texas.
ARTICLE I
RIGHT TO ASSIGN
The City -of Corpus Christi,_a municipal corporation, situated in
Nueces County, Texas, hereinafter called the City, the sponsor and owner of
the Corpus Christi International Airport, does by the acceptance of this
assignment and agreement, agree to all of the terms and conditions set out
herein and agrees that in the event of a judicial determination that this
agreement was entered into contrary to law as between Assignor, Trustee, City,
and Associates or that Assignor, Corpus Christi Bank & Trust Company, or City
did not have legal authority to enter into this assignment, then the City agrees
to take whatever reasonably necessary steps may be required to provide Associates
with a good and valid assignment or lease of the space hereinafter described. It
is understood by and between the parties hereto that this assignment and agreement
must be accepted and approved by the City Council of the City of Corpus Christi,
acting by and through its City Manager, in writing noted herein, before the City
is bound by any of the terms or conditions set forth herein.
ARTICLE II
DESCRIPTION OF ASSIGNED AND LEASED SPACE
A. Assignor does hereby assign unto Associates, and Trustee and City do
hereby accept and approve, subject to all of the terms, conditions and covenants
of this agreement, and the agreement between the City of Corpus Christi and
Trustee as hereinabove described, an area designated for commercial hangar and
fixed base aviation operations located generally on the north and east side of
the present control tower as outlined in red on the attached drawing marked
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Exhibit "A" which is made a part hereof as if copied verbatim herein and
specifically described as follows:
BEGINNING at the northwest corner of the transient apron,
thence proceeding 50 feet due west for a place of beginning;
THENCE west for a distance of 247.87 feet for the southwest
corner thence 90° due north for a distance of 950 feet for an
inside corner;
THENCE 90° due west 172.13 feet for an outside corner;
THENCE 90° due north 200 feet for the northwest corner;
THENCE 90° due east 760 feet for the northeast corner;
THENCE 90° due south 450 feet for an outside corner;
THENCE 90° due west 340 feet for an inside corner;
THENCE 90° due south 750 feet to the place of beginning.
B. In addition to the above described premises leased by the City and
assigned by Assignor to Associates, the City leases unto Associates an area located
on Corpus Christi International Airport portions designated as a transient apron
located generally on the east side of the present control tower as outlined in
blue on the attached Exhibit "A" and specifically described as follows:
Transient apron leased area.
Area 1
BEGINNING at the northwest corner of the transient apron, thence
proceeding due east for a distance of 205 feet for the northeast corner;
THENCE 90° due south for a distance of 104 feet for the southeast
corner;
THENCE 90° due west for a distance of 205 feet for the southwest
corner and thence 90° north for a distance of 104 feet to the place
of beginning.
Area 2
Starting at the northwest corner of the transient ramp due south
for a distance of 158 feet for a place of beginning;
THENCE 90° east for a distance of 205 feet for the northeast corner;
THENCE 90° due south 68 feet for the southeast corner;
THENCE 90° due west for a distance of 205 feet for the southwest
corner;
THENCE 90° north for a distance of 68 feet to the place of beginning.
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ARTICLE III
PRIVILEGES, RIGHTS, USES AND INTERESTS
A. USE OF LEASED PREMISES. Associates shall use the areas described
in paragraphs A and B of Article II hereof (the leased premises) for commercial
hangar and fixed base aviation operations herein defined as follows 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 main-
taining, repairing, modifying, leasing, purchasing, or otherwise
acquiring, selling, exchanging, dispensing, financing, insuring,
or dealing in or distributing aircraft, aircraft components, parts,
supplies and equipment of every class and description;
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 profit
related to or contributing in any way to aircraft sales, servicing
and distributing or aerial navigation or directly related to the
operation outlined in subparagraphs 1 through 7 above.
B. RIGHT TO USE AIRPORT. Associates shall have the right to use the
public areas and public airport facilities including the runways, taxiways, aprons,
ramps and navigational aids and facilities in common with others 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 accordance with all reason-
able and applicable rules, regulations, ordinances and Charter of the City.
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C. RIGHTS ENUMERATED. In addition to the uses enumerated in
Paragraph A above, Associates shall have the following rights:
1. To sell aircraft fuels, lubricants and propellants on the
leased premises, on any public apron, and within any private hangar
area. City reserves the right to lease or rent that portion of the
transient apron located immediately adjacent to the control tower
annex building, designated as "Excluded Transient Apron" on the
attached Exhibit A, to an operator or operators as a separate busi-
ness for the dispensing of fuels, lubricants, propellants and/or
the operation of tie -down facilities on said apron. In the event
that the Excluded Transient Apron is operated as a separate business,
then Associates shall not have the right to the use of the tie -downs
on said Excluded Transient Apron or to sell and dispense fuels, lubri-
cants or propellants on said Excluded Transient 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 include
hangar storage of aircraft, major and minor overhauling and repairing
of aircraft, repairing, inspection and licensing of same, and pur-
chase and sale of parts, equipment and aircraft accessories.
5. To purchase and sell, within the leased premises, aeronautical
charts, publications, caps, sunglasses, computers, radios, and other
aviation related items normally sold and dispensed by commercial
fixed base hangar operators.
6. To rent, lease and charter aircraft and to engage in the
business of teaching and/or otherwise instructing flying and air-
craft mechanics.
7. To place and erect signs and advertising material within the
hangars, offices and shops on the leased premises at Associates'
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discretion, and to place and erect signs and other advertising
material on the outside of Associates' buildings, shops and
offices, provided that the size and shape of such outside signs
shall conform to the general appearance of the airport premises
and be subject to the prior written approval of the Airport
Manager, which approval shall not be unreasonably withheld. The
Airport Manager shall have the right to order Associates to remove
any sign installed by Associates which has not been approved.
D. ACTIVITIES AND USES EXPRESSLY PROHIBITED. The following activi-
ties and uses are expressly excluded from this lease and Associates is prohibited
from any
such use or activity except as noted:
1. Ground Transportation for hire. Associates 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. Associates 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 Associates does not engage
commercially in the taking or sending of telegrams, money orders, etc.
3. Automobile Rental Service except as an agent of an existing
automobile rental service having a valid lease with the City for the
use of space at the Airport in order to operate said automobile rental
service.
4. News and sundry sales except for those aviation related items
mentioned hereinabove.
5. Advertising concessions except for those that may be
conducted with Associates' hangars, offices and shops.
6. Barber, valet and personal services.
7. The sale of food and/or drink except from dispensing
machines located within the hangars, offices and/or shops.
However, no cafe or cafeteria type of service shall be operated.
8. The sale of flight and/or trip insurance.
9. Commercially engaging in the business of making reservations
for hotels, motels and other lodging.
as
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ARTICLE IV
CONSTRUCTION OF HANGARS AND IMPROVEMENTS
Prior to construction of any hangar or improvements on the leased
premises, Associates 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. Such plans and specifications will
be reviewed by the City within a reasonable period of time, and its approval
will not be unreasonably withheld. No buildings shall be constructed within
existing utility eastments.
ARTICLE V
ACCEPTANCE OF BUSINESS
Associates 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 VI
TERM
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Provided Associates has not defaulted in any of the terms, conditions
and provisions hereof, the term of this Part I modification of lease covering the
premises described in Article II A. shall be for a period expiring on July 13, 1990,
and the term of this Part I modification of lease covering the premises described
in Article II B. shall be for a period of five (5) years from the execution date
of the modification of lease. This Part I modification of lease 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,
Associates complies with the provisions of Article VIII, Section 2(c) of the City
Charter by completing the construction on the demised premises of a new hangar,
having a ground -level area of not less than twelve thousand (12,000) square feet
and 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. Rental payments on twelve thou-
sand (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 Associates does not comply with these requirements, Part II shall
not become effective, and this Part I modification of lease will expire according
to the terms hereof, no later than July 13, 1990.
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ARTICLE VIT
RENT
Associates will pay City a base rental fixed as of July, 1960
and supplemented as follows:
1. Three cents ($.03) per square foot per year for the
leased premises covered by hangars, shops, offices, paved
apron area and/or other improvements (the "Improved Area").
.2. One cent ($.01) per square foot per year for the area
within the leasedpremises between the building setback lines
where buildings could legally be constructed (the "Unimproved
Area").
3. Thirty-three and one-third per cent (33 1/3%) of the
gross income received by Associates from parking and/or tie -
down facilities located on any apron that may be constructed
in the apron area shown on Exhibit "A", except on the leased
portion of the Transient Apron shown on said Exhibit "A" and on
any apron for which Associates pays the improved area rate.
4. Two cents ($.02) per gallon as a "flowage fee" for each
gallon of gasoline and/or other propellants and fuels purchased
by Associates for use or sale at the Airport, except to commercial
airline aircraft holding valid operating contracts on the airport.
Associates 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. Associates will not be charged for storage tanks within
the leased premises, except ground rental, and will submit storage
tank plans to the City for approval prior to installation which
approval shall not be unreasonably withheld. Fuel storage sites
on property outside the leased premises will require a separate
lease.
6. Within 180 days following the end of each three year
period after the execution of this lease, either City or Asso-
ciates may request in writing an adjustment in the ground rental
rates, and the flowage fees as above set out, which adjustment
shall operate from the end of such three year period and shall be
computed by multiplying such rate and fee by a fraction, the denomin-
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ator of which shall be the arithmetical average as of July, 1960
of the indices of the United States Bureau of Labor Statistics
for (Al hourly wage rates of all workers in manufacturing and
(B) 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 pre-
ceding 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 manu-
facturing employees was $2.26 per hour and the commodity wholesale
price index was 100.8. Such formula must result in a change of at
least 1/4 cent ($0.0025) per unit or no adjustment shall be made,
and all adjustments shall be made to the nearest 1/4 cent. City
retains tile right toadjust the rates for fuel flowage fees set
forth herein, such rates to be published by ordinance duly adopted
by the City Council, provided, however, that any sucti increases shall
be used only for Airport purposes. City will put this same clause
in any renewal amendment, or extension of any other existing fixed
base operator lease as well as any other new fixed base operator lease.
7. Effective as of the date of the execution of this lease and
based on the current levels of the indices referred to in Paragraph
6. above, the rents based on the foregoing formula are as follows:
The Improved Area,seven and one-fourth cents ($.0725) per square
foot per year; Unimproved Area, two and one-half cents ($.0250)
per square foot per year; Flowage fee, four and three-fourths
cents ($.0475) 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, Associates shall
prepare a report in writing on a form approved by the City showing
the total number of gallons of gasoline fuels and/or other pro-
pellant purchased by Associate and the total gross receipts on the
above mentioned apron during the preceding calendar month and shall
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submit said report to City along with the rental to be paid
thereunder prior to the tenth day of said calendar month.
Associates shall submit a like report and payment therefor
for each succeeding month during the term of this lease.
Associates will keep full and accurate records of all trans-
actions, purchases, sales, and income, both from cash sales
and credit sales, that in any way concern revenue to City; and
will hold all books and records covering such sales open to
inspection by City at all reasonable times until audited by
the City, but not to exceed five (5) years.
8. City appoints its airport manager as its agent to
receive all rentals and reports under this lease, and Asso-
ciates will submit said reports and payments to the Airport
Manager at his office in Nueces County, Texas: City may
designate others as agents to inspect Associates' books and
records, such inspections to be performed at reasonable times
during working hours, and all such information to be maintained
as confidential unless otherwise required by law.
9. The term "apron" shall include, without limitation, all
areas labeled "Commercial Apron", "Transient Apron", "Excluded
Transient Apron" or "Comm. Apron" on Exhibit A attached hereto.
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 VIII
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 Associates by this lease.
B. To make electricity, water, gas and wastewater service available
upon the same basis as applies to residents within the City of Corpus Christi.
Associates shall pay all charges for water, gas, wastewater, electricity and
other public utilities supplied to Associates and/or Associates' leased prem-
ises during the term of this lease as such charges become due and payable.
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C. At its expense, to extend the apron located east of Associates'
present hangars in an easterly direction from the apron's present eastern edge
approximately 72 feet, and in a northerly direction from the apron's northern
edge, including the 72 foot eastern extension, approximately 150 feet to the
water easement line, all as outlined in green in Exhibit A. Such extension shall
be accomplished by the City within one year from the date hereof, contingent upon
participation in the cost by F.A.A. and the awarding of a contract for construc-
tion by the City Council (and the City agrees to use its best efforts to meet
both conditions), and shall be done in accordance with plans and specifications
consistent with those applicable to the present. apron, prior to extension. The
northerly extension, measuring approximately 262 feet by 150 feet, shall be for
Associates' exclusive use and shall be treated as Improved Area for purposes of
rental payments, but no percentage rent shall be applicable to income from parking
or tiedown facilities thereon. The easterly extension shall be for the nonexclusive
use of Associates and no fixed rent shall be payable by Associates.
ARTICLE IX
UNDERTAKINGS OF ASSOCIATES
Associates further covenants as follows:
A. At its own expense, to maintain said leased premises and improve-
ments thereon 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 located within the airport site;
provided, however, that City may provide garbage service for a reasonable fee
consistent with charges made to commercial 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 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 Associates or its tenants and sublessees will be allowed to make
reasonable and nondiscriminatory discounts, rebates or other similar type of
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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
Associates' charges for any of Associates' operations.
ARTICLE X
GENERAL PROVISIONS
A. INDEMNIFICATION. Associates is and shall be deemed to be an
independent contractor and operator responsible to all parties for its respec-
tive acts or omissions and those of its agents, servants, employees, invitees,
tenants and sublessees, and Trustee and City shall in no way be responsible
therefor. In the use of the airport and in the maintenance, erection or con-
struction of any improvements thereon, and the exercise and enjoyment,.of the
rights herein granted, Associates will indemnify andsaveharmless Trustee and
City from any and all losses or claims for damages that may proximately result
to Trustee and/or City from any negligence on the part of Associates, Associates'
agents, servants, employees, construction contractors and invitees, and for those
of its tenants and sublessees. Associates 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. 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.
B. NOTICES. Notices to Trustee and City shall be deemed sufficient
if in writing and personally delivered or mailed, postage prepaid, by certified
mail 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 Associates shall be deemed sufficient if in
writing and personally delivered or mailed, postage prepaid by certified mail
addressed to Associates at.2801 East 78th Street, Minneapolis, MN 55420, or to
such other address as may be designated in writing by Associates.
C. TAXES. Associates will pay any and all real and personal property
taxes levied from time to time upon the improvements placed upon the leased premises.
D. BENEFIT. All of the terms, covenants and agreements herein con-
tained shall be binding upon and shall inure to the benefit of the parties hereto
and the successors and assigns of Associates, Trustee and City.
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E. DESTRUCTION. In the event that Associates' improvements or
the airport are damaged or destroyed by acts of God or through enemy attack
or for any other reason outside the control of Associates and City to such
an extent that the airport cannot be operated as an airport, then this lease
shall terminate, at the option of either party by written notice to the other
party.
In the event that the leased premises or Associates' improvements
or the airport facilities reasonable and necessary for Associates to conduct
Associates' business are partially destroyed or damaged due to acts of God or
other acts outside the control of Associates 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 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. In the case of such total or partial destruction, if any applicable
insurance proceeds are adequate to reconstruct the damaged improvements or
facilities, then such improvements or facilities shall be rebuilt within a
reasonable period of time by the applicable insured. At its own expense,
Associates shall cause comprehensive general insurance to be carried and main-
tained with respect to the hangars and improvements on the leased premises with
coverage consistent with industry practice. Evidence of such insurance shall be
presented to the City at the time of execution of this lease and such policies
shall provide for a minimum of ten (10) days advance notice to the City in the
event of cancellation or material changes in the terms thereof. All insurance
proceeds from Associates' policies for such casualty losses to hangars and
improvements on the leased premises shall be payable solely to Associates;
provided, however, that if insurance proceeds are not adequate and Associates
elects not to substantially replace and/or rebuild such damaged hangars and
improvements within a reasonable time, then Associates shall remit to the City
an amount from the proceeds of such policies equal to three percent (3%) of
the total insurance proceeds payable to Associates, multiplied by the number of
years (to the nearest month) from the date of execution of this Modification of
Lease agreement, not to exceed one hundred percent (100%). If the applicable
party falls to substantially repair or rebuild such improvements or facilities
within a reasonable period of time, then this lease may be terminated at the
option of either party by written notice to the other party.
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F. SUBORDINATION. This lease shall be subordinate to the provisions
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 if requested by Associates, the City shall provide adequate alternate
premises to Associates. If the City is unable to provide adequate alternate
premises, then this lease shall terminate at the option of Associates.
G. TERMINATION.
1. This lease shall terminate on July 13, 1990, and Associates
shall have no further right or interest in any of the leased premises
or rights, uses or other interests contained in this lease, and
Associates will vacate and remove all equipment placed thereon by
Associates prior to the execution of this lease, unless Associates
complies with the provisions of Article VIII, Section 2(c) of the
City Charter as described in Article VI above. Associates shall
have one hundred twenty (120) days within which to remove Associates'
equipment and personal property, and in the event Associates 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
Associates will reimburse City for its expense.
2. If Associates does not comply with the provisions of
Article VIII, Section 2(c) of the City Charter prior to July 13,
1990, or if this lease is terminated prior to such date other than
for purposes of effectuating Part II hereof, all improvements placed
on the leased premises including existing hangars, shall become the
property of the City upon termination of this lease.
H. CANCELLATION. Default in payment of any of the rentals shall
give the City the right to terminate this lease at any time after thirty (30)
days notice in writing has been given to Associates, unless within said time
Associates has fully complied with the rental provisions.
Default in any of the other covenants on the part of Associates shall
likewise give City the right to terminate this lease at any time after thirty
-14-
(30) days notice in writing has been given Associates, unless within said time
Associates has proceeded in good faith to correct the condition creating the
default. City will specify in such default notice the lease provision under
which City claims that Associates is in default, and the acts or omissions
giving rise to the claimed default.
ARTICLE XI
TRANSFER OF LEASE
The written approval of the City shall be obtained by Associates
prior to any sale, reassignment, transfer or subassignment of this lease which
approval shall not be unreasonably withheld. Should Associates borrow money or
otherwise finance the improvements 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 Associates' failure to pay, said lender,
financing agency or guarantor may operate the lease subject to all of its pro-
visions, provided al -1 obligations of Associates under the lease are met and all
payments owing be paid.
ARTICLE XII
AIR OPERATIONS AREA SECURITY
Associates shall provide for the security of the air operations area
to prevent ground entry or movement of unauthorized persons from or through the
leased premises in accordance with Section 9-32 of the City Code of Corpus Christi,
Texas, and any regulations imposed upon City by the Federal Aviation Administra-
tion. Associates will 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 Associates' 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.
ARTICLE XIII
CIVIL RIGHTS
In exercising any of the leased rights or privileges. Associates shall
not on the grounds of race, sex, creed, or national origin discriminate or permit
-15-
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.
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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 Air Associates, Inc., a Minnesota corporation
qualified to do business in Texas, hereinafter referred to as "Associates",
upon these terms, performable in Nueces County, Texas.
ARTICLE I
DESCRIPTION OF LEASED SPACE
City leases unto Associates an area located on Corpus Christi Inter-
national Airport designated for commercial hangar and fixed base operations
located generally on the north and east side of the present control tower as
outlined in red and blue on the attached drawing marked Exhibit "A" which is made
a part hereof as if copied verbatim herein and specifically described as follows
(the "leased premises"):
BEGINNING at the northwest corner of the transient apron, thence
proceeding 50 feet due west for a place of beginning;
THENCE west for a distance of 247.87 feet for the southwest corner
thence 90° due north for a distance of 950 feet for an inside corner;
THENCE 90° due west 172.13 feet for an outside corner;
THENCE 90° due north 200 feet for the northwest corner;
THENCE 90° due east 760 feet for the northeast corner;
THENCE 90° due south 450 feet for an outside corner;
THENCE 90° due west 340 feet for an inside corner;
THENCE 90° due south 750 feet to the place of beginning.
Transient apron leased area.
Area 1
BEGINNING at the northwest corner of the transient apron, thence
proceeding due east for a distance of 205 feet for the northeast corner;
THENCE 90° due south for a distance of 104 feet for the southeast
corner;
THENCE 90° due west for a distance of 205 feet for the southwest
corner and thence 90° north for a distance of 104 feet to the place
of beginning.
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Area 2
Starting at the northwest corner of the transient ramp
due south for a distance of 158 feet for a place of beginning;
THENCE 90° east for a distance of 205 feet for the northeast
corner;
THENCE 90° due south 68 feet for the southeast corner;
THENCE 90° due west for a distance of 205 feet for the
southwest corner;
THENCE 90° north for a distance of 68 feet to the place of
beginning.
ARTICLE II
PRIVILEGES, RIGHTS, USES ANP INTERESTS
A. USE OF LEASED PREMISES. Associates shall use the areas described
in Article I hereof (the leased premises) for commercial hangar and fixed base
aviation operations herein defined as follows 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 main-
taining, repairing, modifying, leasing, purchasing, or otherwise
acquiring, selling, exchanging, dispensing, financing, insuring,
or dealing in or distributing aircraft, aircraft components, parts,
supplies and equipment of every class and description;
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 profit
related to or contributing in any way to aircraft sales, servicing
and distributing or aerial navigation or directly related to the
operation outlined in subparagraphs 1 through 7 above.
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• •
B. RIGHT TO USE AIRPORT. Associates shall have the right to use the
public areas and public airport facilities including the runways, taxiways, aprons,
ramps and navigational aids and facilities in common with others 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 accordance with all reason-
able and applicable rules, regulations, ordinances and Charter of the City.
C. RIGHTS ENUMERATED. In addition to the uses enumerated in
Paragraph A above, Associates shall have the following rights:
1. To sell aircraft fuels, lubricants and propellants on the
leased premises, on any public apron, and within any private hangar
area. City reserves the right to lease or rent that portion of the
transient apron located immediately adjacent to the control tower
annex building, designated as "Excluded Transient Apron" on the
attached Exhibit A, to an operator or operators as a separate busi-
ness for the dispensing of fuels, lubricants, propellants and/or
the operation of tie -down facilities on said apron. In the event
that the Excluded Transient Apron is operated as a separate business,
then Associates shall not have the right to the use of the tie -downs
on said Excluded Transient Apron or to sell and dispense fuels, lubri-
cants or propellants on said Excluded Transient 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 include
hangar storage of aircraft, major and minor overhauling and repairing
of aircraft, repairing, inspection and licensing of same, and pur-
chase and sale of parts, equipment and aircraft accessories.
5. To purchase and sell, within the leased premises, aeronautical
charts, publications, caps, sunglasses, computers, radios, and other
-19-
aviation related items normally sold and dispensed by commercial
fixed base hangar operators.
6. To rent, lease and charter aircraft and to engage in the
business of teaching and/or otherwise instructing flying and air-
craft mechanics.
7. To place and erect signs and advertising material within the
hangars, offices and shops on the leased premises at Associates'
discretion, and to place and erect signs and other advertising
material on the outside of Associates' buildings, shops and
offices, provided that the size and shape of such outside signs
shall. conform to the general appearance of the airport premises
and be subject to the prior written approval of the Airport
Manager, which approval shall not be unreasonably withheld. The
Airport Manager shall have the right to order Associates to remove
any sign installed by Associates which has not been approved.
D. ACTIVITIES AND USES EXPRESSLY PROHIBITED. The following activi-
ties and uses are expressly excluded from this lease and Associates is prohibited
from any such use or activity except as noted:
1. Ground Transportation for hire. Associates 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. Associates 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 Associates does not engage
commercially in the taking or sending of telegrams, money orders, etc.
3. Automobile Rental Service, except as an agent of an existing
automobile rental service having a valid lease with the City for the use
of space at the Airport in order to operate said 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 Associates' hangars, offices and shops.
-20-
6. Barber, valet and personal services.
7. The sale of food and/or drink except from dispensing
machines located within the hangars, offices and/or shops.
However. no cafe or cafeteria type of service shall be operated.
8. The sale of flight and/or trip insurance.
9. Commercially engaging in the business of making reservations
for hotels, motels and other lodging.
ARTICLE III
CONSTRUCTION OF HANGARS AND IMPROVEMENTS
Prior to construction of any hangar or improvements on the leased
premises, Associates 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. Such plans and specifications will
be reviewed by the City within a reasonable period of time, and its approval
will not be unreasonably withheld. No buildings shall be constructed within
existing utility eastments.
ARTICLE IV
ACCEPTANCE OF BUSINESS
Associates 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
Associates has not defaulted in any of the terms, conditions, and provisions
hereof. This term shall commence upon completion of construction of the han-
gar and all requisite conditions for compliance with Article VIII, Section
2(c) of the City Charter.
ARTICLE VI
RENT
Associates will pay City a base rental fixed as of July, 1960
and supplemented as follows:
1. Three cents ($.03) per square foot per year for the
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leased premises covered by hangars, shops, offices, paved
apron area and/or other improvements (the "Improved Areal.
2. One cent ($.01) per square foot per year for the area
within the leased premises between the building setback lines
where buildings could legally be constructed (the "Unimproved
Area").
3. Thirty-three and one-third per cent (33 1/3%) of the
gross income received by Associates from parking and/or tie -
down facilities located on any apron that may be constructed
in the apron area shown on Exhibit "A", except on the leased
portion of the Transient Apron shown on said Exhibit "A" and on
any apron for which Associates pays the improved area rate.
4. Two cents ($.02) per gallon as a "flowage fee" for each
gallon of gasoline and/or other propellants and fuels purchased
by Associates for use or sale at the Airport, except to commercial
airline aircraft holding valid operating contracts on the airport.
Associates 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. Associates will not be charged for storage tanks within
the leased premises, except ground rental, and will submit storage
tank plans to the City for approval prior to installation which
approval shall not be unreasonably withheld. Fuel storage sites
on property outside the leased premises will require a separate
lease.
6. Within 180 days following the end of each three year
period after the execution of this lease, either City or Asso-
ciates may request in writing an adjustment in the ground rental
rates, and the flowage fees as above set out. which adjustment
shall operate from the end of such three year period and shall be
computed by multiplying such rate and fee by a fraction, the denomin-
ator of which shall be the arithmetical average as of July, 1960
of the indices of the United States Bureau of Labor Statistics
for (A) hourly wage rates of all workers in manufacturing and
(B) all commodity wholesale prices, and the numerator of which
-22-
shall be the arithmetical average of said indices (A) and (8) for
the last available twelve (12) monthly indices. immediately pre-
ceding 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 manu-
facturing employees was $2.26 per hour and the' commodity wholesale
price index was 100.8. Such formula must result in a change of at
least 1/4 cent ($0.0025) per unit or no adjustment shall be made,
and all adjustments shall be made to the nearest 1/4 cent. City
retains the right to adjust the rates for fuel flowage fees set
forth herein, such rates to be published by ordinance duly adopted
by the City Council, provided, however, that any such increases shall
be used only for Airport purposes. City will put this same clause
in any renewal amendment, or extension of any other existing fixed
base operator lease as well as any other new fixed base operator lease.
7. Effective as of the date of the execution of this lease and
based on the current levels of the indices referred to in Paragraph
6. above, the rents based on the foregoing formula are as follows:
The Improved Area, seven and one-fourth cents ($.0725) per square
foot per year; Unimproved Area, two and one-half cents ($.0250)
per square foot per year; Flowage fee, four and three-fourths
cents ($.0475.) 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, Associates shall
prepare a report in writing on a form approved by the City showing
the total number of gallons of gasoline fuels and/or other pro-
pellant purchased by Associate and the total gross receipts on the
above mentioned apron during the preceding 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.
Associates shall submit a like report and payment therefor
-23-
•
for each succeeding month during the term of this lease.
Associates will keep full and accurate records of all trans-
actions, purchases, sales, and income, both from cash sales
and credit sales, that in any way concern revenue to City; and
will hold all books and records covering such sales open to
inspection by City at all reasonable times until audited by
the City, but not to exceed five (5) years.
8. City appoints its airport manager as its agent to
receive all rentals and reports under this lease, and Asso-
ciates will submit said reports and payments to the Airport
Manager at his office in Nueces County, Texas. City may
designate others as agents to inspect Associates' books and
records, such inspections to be performed at reasonable times
during working hours, and all such information to be maintained
as confidential unless otherwise required by law.
9. The term "apron" shall include, without limitation, all
areas labeled "Commercial Apron", "Transient. Apron", "Excluded
Transient Apron" or "Comm. Apron" on Exhibit A attached hereto.
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 Associates by this lease.
B. To make electricity, water, gas and wastewater service available
upon the same basis as applies to residents within the City of Corpus Christi.
Associates shall pay all charges for water, gas, wastewater, electricity and
other public utilities supplied to Associates and/or Associates' leased prem-
ises during the term of this lease as such charges become due and payable.
C. If constructed, the northerly extension measuring approximately
262 feet by 150 feet shall be for Associates' exclusive use and shall be treated
as Improved Area for purposes of rental payments, but no percentage rent shall be
applicable to income from parking or tiedown facilities thereon.
-24-
ARTICLE VIII
UNDERTAKINGS OF ASSOCIATES
Associates further covenants as follows:
A. At its own expense, to maintain said leased premises and improve-
ments thereon 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 located within the airport site;
provided, however, that City may provide garbage service for a reasonable fee
consistent with charges made to commercial 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 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 Associates 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
Associates' charges for any of Associates' operations.
ARTICLE IX
GENERAL PROVISIONS
A. INDEMNIFICATION. Associates is and shall be deemed to be an
independent contractor and operator responsible to all parties for its respec-
tive acts or omissions and those of its agents, servants, employees, invitees,
e
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,
Associates 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 Associates, Associates' agents, servants, employees, construction contractors
-25-
•
and invitees, and for those of its tenants and sublessees. Associates 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. Such policy shall, in addition, be endorsed to provide for cross -
liability between the assureds. Such policy shall 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.
B. -NOTICES. Notices to City shall be deemed sufficient if in writing
and personally delivered or mailed, postage prepaid, by certified mall 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 Associates shall be deemed sufficient if in writing and person-
ally delivered or mailed, postage prepaid by certified mail addressed to Asso-
ciates at 2801 East 78th Street, Minneapolis, MN 55420, or to such other address
as may be designated in writing by Associates.
C. TAXES. Associates will pay any and all real and personal property
taxes levied from time to time upon the improvements placed upon the leased
premises.
D. BENEFIT. All of the terms, covenants and agreements herein
contained shall be binding upon and shall inure to the benefit of the parties
hereto and the successors and assigns of Associates and City.
E. DESTRUCTION. In the event that Associates' improvements or
the airport are damaged or destroyed by acts of God or through enemy attack
or for any other reason outside the control of Associates and City to such
an extent that the airport cannot be operated as an airport, then this lease
shall terminate, at the option of either party by written notice to the other
party.
In the event that the leased premises or Associates' improvements
or the airport facilities reasonable and necessary for Associates to conduct
Associates' business are partially destroyed or damaged due to acts of God or
other acts outside the control of Associates 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 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. In the case of such total or partial destruction, if any applicable
-26-
•
insurance proceeds are adequate to reconstruct the damaged improvements or
facilities, then such improvements or facilities shall be rebuilt within a
reasonable period of time by the applicable insured. At its own expense,
Associates shall cause comprehensive general insurance to be carried and main-
tained with respect to the hangars and improvements on the leased premises with
coverage consistent with industry practice. Evidence of such insurance shall be
presented to the City at the time of execution of this lease and such policies
shall provide for a minimum of ten (10) days advance notice to the City in the
event of cancellation or material changes in the terms thereof. All insurance
proceeds from Associates' policies for such casualty losses to hangars and
improvements on the leased premises shall be payable solely to Associates;
provided, however, that if insurance proceeds are not adequate and Associates
elects not to substantially replace and/or rebuild such damaged hangars and
improvements within a reasonable time, then Associates shall remit to the City
an amount from the proceeds of such policies equal to three percent (3%) of
the total insurance proceeds payable to Associates, multiplied by the number of
years (to the nearest month) from the date of execution of this Modification of
Lease agreement, not to exceed one hundred percent (100%). If the applicable
party fails to substantially repair or rebuild such improvements or facilities
within a reasonable period of time, then this lease may be terminated at the
option of either party by written notice to the other party.
F. SUBORDINATION. This lease shall be subordinate to the provisions
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 if requested by Associates, the City shall provide adequate alternate
premises to Associates. If the City is unable to provide adequate alternate
premises, then this lease shall terminate at the option of Associates.
G. TERMINATION.
1. This lease shall terminate at the end of the term set forth
in Article V. hereinabove, and Associates shall have no further
right or interest in any of the leased premises or rights, uses
-27-
•
or other interests contained in this lease, and Associates will
vacate and remove all equipment placed thereon by Associates
prior to the execution of this lease, unless Associates and
the City renegotiate said lease and enter into a mutually
satisfactory lease extending the term hereof. Associates
shall have one hundred twenty (120) days within which to
remove Associates' equipment and personal property, and in
the event Associates 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 Associates
will reimburse City for its expense.
2. At the termination of this lease all improvements
placed on the leased premises, including existing hangars
shall revert to City in accordance with the City Charter,
Article VIII, Section 2, as amended.
H. CANCELLATION. Default in payment of any of the rentals shall
give the City the right to terminate this lease at any time after thirty (30)
days notice in writing has been given to Associates, unless within said time
Associates has fully complied with the rental provisions.
Default in any of the other covenants on the part of Associates shall
likewise give City the right to terminate this lease at any time after thirty
(30) days notice in writing has been given Associates, unless within said time
Associates has proceeded in good faith to correct the condition creating the
default. City will specify in such default notice the lease provision under
which City claims that Associates is in default, and the acts or omissions
giving rise to the claimed default.
ARTICLE X
TRANSFER OF LEASE
The written approval of the City shall be obtained by Associates
prior to any sale, reassignment, transfer or subassignment of this lease which
approval shall not be unreasonably withheld. Should Associates borrow money or
otherwise finance the improvements 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 Associates' failure to pay, said lender,
-28-
financing agency or guarantor may operate the lease subject to all of its pro-
visions, provided all obligations of Associates under the lease are met and all
payments owing be paid.
ARTICLE XI
AIR OPERATIONS AREA SECURITY
Associates shall provide for the security of the air operations area
to prevent ground entry or movement of unauthorized persons from or through the
leased premises in accordance with Section 9-32 of the City Code of Corpus Christi,
Texas, and any regulations imposed upon City by the Federal Aviation Administra-
tion. Associates will 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 Associates' 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.
ARTICLE XII
CIVIL RIGHTS
In exercising any of the leased rights or privileges, Associates 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.
-29-
EXECUTED on this day of 1980.
ROGER L. GAULT, D/B/A GAULT AVIATION
ATTEST:
ATTEST:
AIR ASSOCIATES, INC.
By
CORPUS CHRISTI BANK & TRUST COMPANY
By
ATTEST: CITY OF CORPUS CHRISTI
City Secretary By
R. Marvin Townsend, City Manager
APPROVED: , 1980:
J. BRUCE AYCOCK, City Attorney
By
Assistant City Attorney
Director of Finance
ACKNOWLEDGMENT
THE STATE OF TEXAS 1
COUNTY OF NUECES 1
BEFORE ME, the undersigned authority, on this day personally appeared
ROGER L. GAULT, D/B/A GAULT AVIATION, known to me to be the person whose name
is subscribed to the foregoing instrument and acknowledged to me that he executed
the same for the purposes and consideration therein expressed.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the day of
, 1980.
Notary Public in and for Nueces County,
Texas
My Commission Expires:
-30-
CORPORATE ACKNOWLEDGMENT
THE STATE OF MINNESOTA Q
COUNTY OF HENNEPIN 1
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
AIR ASSOCIATES, INC., 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
, 1980.
Notary Public in and for Hennepin County,
Minnesota
My Commission Expires:
CORPORATE ACKNOWLEDGMENT
THE STATE OF TEXAS 1
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
CORPUS CHRISTI BANK AND TRUST COMPANY, 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
1980.
Notary Public in and for Nueces County,
Texas
My Commission Expires:
-31
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
CITY OF CORPUS CHRISTI, TEXAS, 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
1980.
Notary Public in and for Nueces County,
Texas
My Commission Expires:
•
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That the foregoing ordinance wa read for 'th first time a passed to its
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following vote:
Luther Jones
Edward L. Sample
Dr. Jack Best
David Diaz
Jack K. Dumphy
Betty N. Turner
Cliff Zarsky
That the foregoing ordinance was read for cond time and passed to its
third reading on this the / day of
following vote:
Luther Jones
Edward L. Sample
Dr. Jack Best
David Diaz
Jack K. Dumphy
Betty N. Turner
Cliff Zarsky
That the foregAing ordina ryas read for thet�third time and passed finally
on this the 0 day of 4.6t , 19 d'_; , by the following vote:
Luther Jones
Edward L. Sample
Dr. Jack Best
David Diaz
Jack K. Dumphy
Betty N. Turner
Cliff Zarsky
PASSED AND APPROVED, this the ;20 day of
ATTEST:,
, 19$0 , by the
Cit Secreta
TZ
ED:
DA
Z Y OF -,,4, 7 , 1980 :
J. BRUCE AYCOCK, CITY ATTORNEY
19 Po
15372
OF CORPUS CHRISTI, TEXAS
PUBLISHER'S AFFIDAVIT
,=ATE OF TEgASre` ss:
County of Nueces.
• Before me, the undersigned, a Notary Public, this day personally came.._...._ ------•
Elma Rodela who being first duly sworn, according to law, says that he is the
Accounting Clerk of the
Daily Newspapers published at Corpus Christi, Texas,
PUBLIC NTOCENotice is hereby 4iven that the
of which the annexed is a true copy, was published in
Corpus Christi Caller and The Corpus Christi Tim
es,
in said County and State, and that the publication of
City Council of the City of Corpus Christ/,...
on the...If/111 day of February.„_._..,.._ 1980 .., and once
consecutive.._.....
__._--.._.....� ....._-..Times.
26.95
Subscribed and sworn to before me this
each
Elma Rodela
Accounting Clerk
ebruary
day of..
19 80
Lois Winn
Notary Public, Nueces County, Texas
--PUBLIC 1:1019 -et
Notify b hereby given thetl
• the Cls Council of the City of
13th day of Christi February,n1990,.
epprov'ed on second reading,
prevIOl1lY apprrved onfirst
reading Jenuery la, 1980, an
CitynMai- gerauthorizing to exeutehea
mmenti with Corppof uS Cse hristi
Bank end Trust Company
(Trustee) and Air Assoc)
ales, Inc., covering com
merclal hengars and fixe
bele aviation lease plots a
the Corpus Christ) Inter
national Airport, and prevld
lag for a five (5) year leas
01 portIai oithe Transie
Apr on and for.* stele-thlr
(38) year 1 p�Bel Menai
k�l. =tit SMlan,
fy�M�}} d eMl o1rdl11CY nC
avaces of th Ili.y Sect le
Offices of the CITY Seed the.
w1T:1E5S my hand this
14th day of February, 1990.
-s-BIII Y. Read,
City Secretary
City of Corpus 1
Christ), Texas
MOTION
Mayor Pro Tem Edward Sample
moved and Council Member David Diaz
seconded the motion that the ordinance authorizing an assignment of lease from
Roger L. Gault, d/b/a Gault Aviation, to Air Associates, Inc., and authorizing
a modification of lease agreement with Corpus Christi Bank and Trust Company and
Air Associates, Inc., covering commercial hangars and fixed base aviation lease
plots at Corpus Christi International Airport, and providing for a 5 year lease
of portions of the transient apron and for a new 30 year lease of the assigned
and leased premises upon compliance with the City Charter, Article VIII, Section
2(c) by Air Associates, Inc., read on the first of three readings an January 16,
1980, be and the same is hereby amended prior to its second reading as follows:
A. Amend Section 1 of the ordinance by deleting the word "terminate"
in line 4 and substituting therefor the word "assign."
B. Amend Exhibit 1 of the ordinance by deleting the year "1979"
appearing in line 2 of the fourth "Whereas" clause, and substituting therefor
the year "1980."
C. Amend Part I, Article II of Exhibit 1 of the ordinance by deleting
the number'"164"•in line 3 of the Area 1 Transient Apron calls of paragraph 8,
and substituting the number "104."
D. Amend Part I, Article II of Exhibit 1 of the ordinance by deleting
the word "southeast" in line 5 of the Area 1 Transient Apron calls of paragraph
B, and substituting therefor the word "southwest."
E. Amend Part I, Article III of Exhibit 1 of the ordinance by deleting
the words "leased premises" in lines 1 and 2 of paragraph A, and substituting
therefor the words "areas described in paragraphs A and B of Article II hereof
(the leased premises)".
F. Amend Part I, Article III of Exhibit 1 of the ordinance by deleting
the words "including engines, motors, aircraft instruments, parts, supplies and
accessories" in lines 5 through 7 of subparagraph 2 of paragraph A.
G. Amend Part I, Article III of Exhibit 1 of the ordinance by adding the
words "or directly related to the operation outlined in subparagraphs 1 through 7
above" after the word "navigation" in line 3 of subparagraph 8 of paragraph A.
H. Amend Part I, Article III of Exhibit 1 of the ordinance by adding
the words "except as an agent of an existing automobile rental service having a
valid lease with the City for the use of space at the Airport in order to
operate said automobile rental service" after the words "Automobile Rental
Service" in paragraph D, subparagraph 3.
I. Amend Part I, Article VII of Exhibit 1 of the ordinance by
adding the words "and on any apron for which Associates pays the improved
area rate" after the words "on said Exhibit 'A'" in line 5 of subparagraph 3.
J. Amend Part I, Article VII of Exhibit 1 of the ordinance by adding
the words "for use or sale at the airport," after the word "Associates" in line
3 of subparagraph 4.
K. Amend Part I, Article VII of Exhibit 1 of the ordinance by adding
the words "provided, however, that any such increases shall be used only for
Airport purposes" after the words "City Council" which immediately precede
the last sentence of subparagraph 6.
L. Amend Part I, Article VII of Exhibit 1 of the ordinance by adding
the words "until audited by the City, but not to exceed five years" to the end
of the last sentence of subparagraph 7.
M. Amend Part I, Article VIII of Exhibit 1 of the ordinance by adding
the words "and the awarding of a contract for construction by the City Council
(and the City agrees to use its best efforts to meet both conditions)"after the
abbreviation "F.A.A." in line 7 of paragraph C.
N. Amend Part I, Article X of Exhibit 1 of the ordinance by, deleting
the second, third, fourth, fifth, sixth, and seventh sentences of the second
subparagraph of paragraph E and substituting the following:
"In the case of such total or partial destruction, if any
applicable insurance proceeds are adequate to reconstruct
the damaged improvements or facilities, then such improve-
ments or facilities shall be rebuilt within a reasonable
period of time by the applicable insured. At its own ex-
pense, Associates shall cause comprehensive general insurance
to be carried and maintained with respect to the hangars and
improvements on the leased premises with coverage consistent
with industry practice. Evidence of such insurance shall be
presented to the City at the time of execution of this lease
and such policies shall provide for a minimum of ten (10)
days advance notice to the City in the event of cancellation
or material changes in the terms thereof. All insurance pro-
ceeds from Associates' policies for such casualty losses to
hangars and improvements on the leased premises shall be
payable solely to Associates; provided, however, that if
insurance proceeds are not adequate and Associates elects
not to substantially replace and/or rebuild such damaged
hangars and improvements within a reasonable time, then
Associates shall remit to the City an amount from the pro-
ceeds of such policies equal to three percent (3%) of the
total insurance proceeds payable to Associates, multiplied
by the number of years (to the nearest month) from the date
of execution of this Modification of Lease agreement, not
to exceed one hundred percent (100%). If the applicable
party fails to substantially repair or rebuild such improve-
ments or facilities within a reasonable period of time,
then this lease may be terminated at the option of either
party by written notice to the other party."
0. Amend Part I, Article X of Exhibit 1 of the ordinance by deleting
the last two sentences in paragraph F and adding the words "at the option of
Associates" to the remaining last sentence after the words "lease shall terminate."
P. ,.Amend Part I, Article XI of Exhibit 1 of the ordinance by adding
the words "which approval shall not be unreasonably withheld" to the first
sentence after the words "subassignment of this lease."
Q. Amend Part I, Article XII of Exhibit 1 of the ordinance by adding
the words "from or through the leased premises" after the words "unauthorized
persons" in line 2 of the first subparagraph.
- R. Amend Part I, Article X of Exhibit 1 of the ordinance by deleting
the words "at the end of the term set forth in Article VI hereinabove" in lines
1 and 2 of paragraph G, subparagraph 1, and substituting the words "on July 13,
1990".
S. Amend Part I, Article VII of Exhibit 1 of the ordinance by deleting
the word "rental" in the last sentence of subparagraph 7 and substituting the
word "revenue".
T. Amend Part II, Article II of Exhibit 1 of the ordinance by deleting
the words "leased premises" in lines 1 and 2 of paragraph A, and substituting
therefor the words "areas described in Article I hereof (the leased premises)".
U. Amend Part II, Article II of Exhibit 1 of the ordinance by deleting
the words "including engines, motors, aircraft instruments, parts, supplies and
accessories" in lines 5 through 7 of subparagraph 2 of paragraph A.
V. Amend Part II, Article II of Exhibit 1 of the ordinance by adding the
words "or directly related to the operation outlined in subparagraphs 1 through 7
above" after the word "navigation" in line 3 of subparagraph 8 of paragraph A.
W. Amend Part II, Article VI of Exhibit 1 of the ordinance by adding
the words "and on any apron for which Associates pays the improved area rate"
after the wards "on said Exhibit 'A'" in line 5 of subparagraph 3.
X. Amend Part II, Article VI of Exhibit 1 of the ordinance by adding
the words "for use or sale at the airport," after the word "Associates" in line
3 of subparagraph 4.
Y. Amend Part II, Article VI of Exhibit 1 of the ordinance by adding
the words "provided, however, that any such increases shall be used only for
Airport purposes" after the words "City Council" which immediately precede
the last sentence of subparagraph 6.
Z. Amend Part II, Article VI of Exhibit 1 of the ordinance by adding
the words "until audited by the City, but not to exceed five years" to the end
of the last sentence of subparagraph 7.
AA.. Amend Part II, Article IX of Exhibit 1 of the ordinance by deleting
the second, third, fourth, fifth, sixth, and seventh sentences of the second
subparagraph of paragraph E and substituting the following:
"In the case of such total or partial destruction, if any
applicable insurance proceeds are adequate to reconstruct
the damaged improvements or facilities, then such improve-
ments or facilities shall be rebuilt within a reasonable
period of time by the applicable insured. At its own ex-
pense. Associates shall cause comprehensive general insurance
to be carried and maintained with respect to the hangars and
improvements on the leased premises with coverage consistent
with industry practice. Evidence of such insurance shall be
presented to the City at the time of execution of this lease
and such policies shall provide for a minimum of ten (10)
days advance notice to the City in the event of cancellation
or material changes in the terms thereof. A11 insurance pro-
ceeds from Associates' policies for such casualty losses to
hangars and improvements on the leased premises shall be
payable solely to Associates; provided. however, that if
insurance proceeds are not adequate and Associates elects
not to substantially replace and/or rebuild such damaged
hangars and improvements within a reasonable time, then
Associates shall remit to the City an amount from the pro-
ceeds of such policies equal to three percent (3%) of the
total insurance proceeds payable to Associates, multiplied
by the number of years (to the nearest month) from the date
of execution of this Modification of Lease agreement, not
to exceed one hundred percent (100%). If the applicable
party fails to substantially repair or rebuild such improve-
ments or facilities within a reasonable period of time,
then this lease may be terminated at the option of either
party by written notice to the other party."
BB. Amend Part II, Article IX of Exhibit 1 of the ordinance by deleting
the last two sentences in paragraph F and adding the words "at the option of
Associates" to the remaining last sentence after the words "lease shall terminate."
CC. Amend Part II, Article X of Exhibit 1 of the ordinance by adding
the words "which approval shall not be unreasonably withheld" to the first
sentence after the words "subassignment of this lease."
DD. Amend Part II, Article XI of Exhibit 1 of the ordinance by adding
the words "from or through the leased premises" after the words "unauthorized
persons" in line 2 of the first subparagraph.
EE. Amend Part II, Article VI of Exhibit 1 of the ordinance by
deleting the word "rental" in the last sentence of subparagraph 7 and
substituting the word "revenue".