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HomeMy WebLinkAbout15472 ORD - 04/16/1980vp:3/18/80:1st AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A LEASE AGREEMENT BETWEEN THE CITY OF CORPUS CHRISTI AND FEDERAL EXPRESS CORPORATION COVERING THE SUBLEASING OF SPACE AT CORPUS CHRISTI INTERNATIONAL AIRPORT AND THE USE OF SUCH AIRPORT, ALL AS IS MORE FULLY SET FORTH IN THE LEASE AGREEMENT, A SUBSTANTIAL COPY OF WHICH IS ATTACHED HERETO AND MADE A PART HEREOF, MARKED EXHIBIT "A". BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the City Manager be and he is hereby authorized to execute a lease agreement between the City of Corpus Christi and Federal Express Corporation, covering the subleasing of space at the Corpus Christi International Airport and the use of such Airport, all as is more fully set forth in the lease agreement, a substantial copy of which is attached hereto and made a part hereof, marked Exhibit "A". 15472 • Amended by Ordinance IV® /S V/ 3 Date iD—g-116 THE STATE OF TEXAS COUNTY OF NUECES This Lease Agreement, made and entered into this the day of 1980, by and between theCityof Corpus Christi, acting herein by and through its City Manager, with authority duly conferred by the City Council, a municipal corporation, organized and existing under the laws of the State of Texas, situated in Nueces County, Texas, hereinafter referred to sometimes as LESSOR, and Federal Express Corporation, hereinafter sometimes referred to as LESSEE, WITNESSETH: ARTICLE I PREMISES Lessor, as sponsor and owner of the Corpus Christi International Airport, located in Nueces County, Texas, does hereby, for the uses and purposes and for the consideration as hereinafter stated, demise and let unto Lessee, and Lessee does hereby hire and take from Lessor, the following premises and, without limiting the generality hereof, the following facilities, rights, licenses and privileges on and in connection with the Airport, as more partic- ularly hereinafter set forth: A. Use of Airport. The use by Lessee, its employees, passengers, guests, patrons and invitees, in common with other duly authorized users of the public portions of said Airport and appurtenances, the same being more particularly described in diagram marked "Exhibit A', attached hereto and made a part hereof for more particular reference, together with all facilities, improvements, equipment and services which have been or may be hereafter provided for common use at or in connection with said Airport. B. Specific Rights at Airport. In addition to all rights elsewhere granted in this agreement, the Lessee shall have the right to use the Airport for the following specific purposes: (1) The operation of a transportation system by aircraft for the carriage of property, including all activities reasonably necessary to such operation, hereinafter referred to as "air transportation";. te (2) The landing, taking off, loading, unloading, repairing, main- taining, aintaining, conditioning, servicing, parking, storing and testing of aircraft or other equipment including the use of a reasonable amount of conveniently located ramp area which Lessor will keep in good repair, and locations to be mutually agreed upon, adequate storage facilities for gasoline, oil, greases and other fuel or supplies, at convenient locations, in accordance with insurance underwriters' standards, together with the necessary pipes, pumps, motors, filters and other appurtenances incidental to the use thereof; such structures and appurtenances to be and resin the severable property of Lessee; (3) The documentation of shipments and the loading and unloading of cargo and property..at said Airport•by such motor vehicles or other means of conveyance as Lessee may desire or require in the operation of its air transportation system, with the right to designate the particular carrier or carriers who shall or may regularly transport Lessee's property and cargo to and from the Airport, provided, however, that nothing contained herein shall prevent the City from granting the franchise or franchises for limousine service; (4) The purchase at said Airport of Lessee's requirements of gaso- line, fuel, lubricating oil, grease, food and other supplies, and any other materials and supplies from any person or company of Lessee's choice, and the making of agreements with any person or company of Lessee's choice for work to be done for Lessee; (5) The installation and operation of identifying signs on the leased premises, the general type and design of such signs to be subject to the approval of the Airport Manager, such approval not to be arbitrarily withheld; (6) The installation, maintenance and operation of such radio, com- munication, meteorological and aerial navigation equipment and facilities in, on and about the premises herein leased and said Airport as may be necessary or convenient in the opinion of the Lessee for its operations; provided that the location of such equipment and facilities as might interfere with full and proper use of the Airport shall be subject to the approval of the Airport Manager, such approval not to be arbitrarily withheld; -2- The rights, licenses and privileges granted the Lessee under this Article I with respect to the performance of ground services and activities in connection with its air transportation operations at the Airport may be exercised by the Lessee for and on behalf of the Lessee by any company or person designated by Lessee. C. Space in Terminal Building. The right to sublease space from other air transport operators holding current leases on Terminal Building spaces is hereby granted for such uses as Lessee may desire to make thereof in con- nection with or incidental to its operation of an air transportation system. The Lessee shall have the right and option at any time and from time to time during the tern hereof and of any extension or renewal, to lease for the exclusive use of itself or of any air transport company subsidiary to or affiliated with it, any additional space at the Airport not necessary to the Lessor's operation of the Airport and at the time not leased to others, whether such space is adjacent to the space leased hereunder or otherwise, together with any or all rights, facilities, licenses, and privileges appurtenant to such space and to the Airport, upon the same general terms and conditions as are herein established. D. Parking Space. The use by Lessee and its employees. in common only with the other air transport operators who may be lessees of space at the Airport and their employees, of adequate vehicular parking space located as near as possible to said Terminal Building. A charge of $2.50 per month per employee may be made for the use of this space. The charge will be levied only in the event that additional parking space must be built to accommodate employees' vehicles. E. Right of Access, Ingress and Egress. The full and unrestricted rights of access, ingress and egress with respect to the premises outlined in paragraphs A to D above, for Lessee, its employees, passengers, guests, patrons, invitees, suppliers of materials and furnishers of service, its or their aircraft, equipment, vehicles, machinery and other property, subject to Airport security regulations, without charge to Lessee, or to said persons or property. -3- ARTICLE II TERM Lessee shall have and hold said premises, facilities, rights, licenses and privileges set forth in paragraphs A to E inclusive, of Article I, for a term commencing on the day of , 1980, and termi- nating at the end of the 7th day of August, 1980,.unless sooner terminated as hereinafter provided. ARTICLE III. QUIET'ENJOYMENT Lessor represents that it has the right to lease said property and appurtenances together with all the facilities, rights, licenses and privi- leges herein granted, and has full power and authority to enter into this lease in respect thereof; and covenants that upon performance of the Agree- ments on the part of Lessee to be performed hereunder, Lessee shall peaceably have and enjoy said premises, appurtenances, facilities, rights, licenses and privileges. ARTICLE IV DEVELOPMENT, MAINTENANCE AND OPERATION OF AIRPORT Lessor agrees that it will,develop and improve, and at all times maintain and operate with adequate and efficient personnel and keep in good repair said Airport and Terminal Building, and the appurtenances, facilities and services now or hereafter connected therewith, and keep said Airport and its approaches free from obstruction, congestion and interference for the safe, convenient and proper use thereof by Lessee, and will maintain and operate said Airport so as to entitle it to the approved rating by the Federal Aviation Agency and all other appropriate regulatory authorities in respect to all present and future operations of Lessee. Lessor shall provide adequate illu- mination for the loading ramp area adjacent to the Terminal Building with a minimum of three foot candles at a distance of 75 feet from the ramp fence line. It is expressly understood that the Lessor will keep the public space in the Terminal Building attractively furnished, and will provide and supply adequate light, electricity and water for the public space; heat during cold weather and air conditioning during warm weather sufficient to keep the -4- building at a reasonable temperature; janitors and other cleaners necessary to keep the Airport and all spaces in the Terminal Building at all times clean, neat, orderly, sanitary and presentable; such personnel as may be necessary to facilitate the use of the Airport and Terminal Building and the appurtenances, facilities and services as aforesaid by any one hereunder entitled to use the same. Lessor agrees that it will provide domestic water, mechanical equipment and piping necessary for cooling and heating Terminal Building space together with the necessary hot and cold water to air-condition and heat said space. ARTICLE V SPACE FOR GOVERNMENT AGENCIES The Lessor covenants and agrees that if it should furnish space and facilities in the Terminal Building for the use of any governmental agency or department requiring space therein, such space and facilities shall be furnished without charge to the Lessee. ARTICLE VI RULES AND REGULATIONS Lessee covenants and agrees to observe and obey all reasonable and law- ful rules and regulations, not in conflict with the provisions hereof, which may from time to time during the term hereof be promulgated and enforced by Lessor for operation at said Airport. ARTICLE VII RENTALS AND FEES Lessee agrees to pay Lessor for the use of all the premises, facilities, rights, licenses and privileges granted hereunder, the following rentals, fees and charges: 1. $4.50 per month for each exclusive Public Address micro- phone located in Lessee's space. 2. $4.50 per month for each intercommunication instrument located in Lessee's space. In the event that it becomes mutually agreeable to install an intercommunication system by the Southwestern Bell Telephone Company, so that the intercommunication system is not provided by Lessor, then this charge shall not be made. 3. Lessee agrees to pay a flat rate for electrical energy consumed for its exclusive use based on actual cost to Lessor. 4. Lessee may from time to time rent space on the airfield upon terms mutually agreed upon between the parties and at such locations as may be mutually agreed upon, for the location of shop space. -5- 5. Lessee may from time to time lease space for the storage of fuels and propellants at a mutually agreed upon loca- tion on the airfield, upon terms and conditions mutually agreed upon between the parties. 6. Landing fees paid by Lessee will be calculated annually in accordance with the following method: Estimated net annual airfield cost estimate times commercial airline allocated share (75%) plus excess liability insurance times airline participation percentage divided by the estimated annual landing weights of all airline users expressed in thousand point units equals the fees per thousand pounds of certified maximum gross landing weight of Lessee's aircraft landing at the Airport. Landing fees will be computed on the basis of the actual number of landings made at the Airport, but no charge will be made for courtesy, test, training•, or any other nonrevenue flights. Fees will be rounded to the nearest one-half cent. Airline participation percentages will begin with the base year 1975-76 at 55%. An increase of 2% will be added to each subsequent year or the percentage of increase in airport enplaning passengers over the previous calendar year, whichever is greater. 1975-76 Calculations Airfield -- Total Activity Budget $ 25,396 Security & Fire Protection -- Total Activity Budget 128,559 Airport Administration -- 20% Activity Budget ' 9,568 Director of Public Utilities -- 26.4% Activity Budget 1,104 General Administration -- 26.4% Activity Budget 16,007 Interest on Bonds -- Bond Repayment Schedule 122,012 Depreciation -- Annual Financial Report 111,687 Subtotal $414,333 Less Fann Lease Income -- Budget Estimate (26,000) Security Service Charges -- Budget Estimate 45,000 Estimated Net Annual Airfield Cost 3 2,33 Estimated Excess Liability Insurance $ 5,500 $342,633 x 75% w $256,975 $256,957 + $5,500 = $262,475 $262,475 x 55% = $144,361 $144,361 1 626,174M = $0.2305/1 000 pounds Rounded to nearest half cent = 234/1,000 pounds 7. Capital improvements made to the terminal complex which are used by and will benefit Lessee and/or its passengers will subject the Lessee to additional space rental, the amount to be negotiated with the Lessor. The above listed rentals and fees shall become due and payable on a monthly basis. Payments shall be made to the Airport Manager or to such other agency of the City as may be specifically designated in writing by the Lessor. The foregoing payments shall be made on or before the 15th day of the calendar month next succeeding that for which payment is being made; provided that in no case will said amount be payable until ten (10) days after receipt by the Lessee of a written bill therefor from Lessor; and provided that Lessee shall not be required to pay in respect to any time or times during which the facilities and privileges of said Airport and premises do not measure up or conform to the standard set in this agreement, or are not for other reasons usable by the Lessee in all its said operations and business. Payments shall be prorated for any portion of a calendar month at the commencement and termination of this agreement. ARTICLE VIII NO FURTHER CHARGES, FEES OR TAXES No rentals, fees, license, excise or operating taxes, tolls or other charges, except those herein expressly provided, shall be charged against or collected from, directly or indirectly, the Lessee or any other person engaged in supplying Lessee, for the privileges of buying, selling, using, storing, withdrawing, handling, consuming or transporting materials or other supplies to, from or on the Airport; of making or performing agreements for work, materials, or services at the Airport; of transporting, loading, un- loading or handling cargo or property to, from or on said Airport; or for any other of the premises, facilities, rights, licenses, and privileges in this lease. Nothing contained herein, however, shall prohibit the Lessor from rent- ing space for or charging a reasonable fee to a catering service providing food prepared on the Airport, or from granting franchises for the operation of limousine and taxicab and rent-a-car services or from charging a flowage fee to operators vending fuels and lubricants on the Airport, provided that no such flowage fee will be charged for fuels and lubricants delivered into Lessee's aircraft at the Airport. This provision is not to limit the right of Lessor to license or tax in a general or nondiscriminatory way any office or business operation located or conducted outside the boundaries of the Airport and within the corporate limits of Lessor; and it is not to limit Lessor's right to impose general and nondiscriminatory ad valorem taxation on personal or real property having a taxable situs within the corporate limits of Lessor. If any taxes other than ad valorem or general sales taxes are paid by Lessee as a result of its operation, the fees and charges in Article VII hereof shall be diminished in like amounts. ARTICLE IX DAMAGE OR DESTRUCTION OF LEASED PREMISES If any property, part or all of which is leased to Lessee, shall be partially damaged or wholly destroyed by fire or other casualty, Lessor at its own cost and expense shall repair or reconstruct the same with due dili- gence and within a reasonable time; and Lessee's rentals and other charges with respect to said property shall be proportionately abated from the happen- ing of such damage or destruction until such time as the premises shall be put in order. ARTICLE X CANCELLATION BY LESSOR In the event that Lessee shall file a voluntary petition in bankruptcy or that proceeding in bankruptcy shall be instituted against it and Lessee is thereafter adjudicated bankrupt pursuant to such proceedings, or that the court shall take jurisdiction of Lessee and its assets pursuant to proceedings brought under the provisions of any Federal reorganization act, or that a receiver of Lessee's assets shall be appointed, or that Lessee shall be divested of, or be prevented by any final action of any Federal or State authority from conducting and operating its transportation system for the carriage of cargo and property by aircraft at the Airport, or in the event that Lessee shall fail to perform, keep and observe any of the terms, covenants or conditions herein contained on the part of the Lessee to be performed, kept or observed, and any such condition or default shall continue for thirty (30) days after the receipt of written notice from Lessor to correct such condition or cure such default, prior to the correction or of curing of such condition or default, if applicable, terminate this lease by a twenty (20) day written notice; and the term hereby demised shall thereupon cease and expire at the end of such twenty (20) days in the same manner and to the same effect as if it were the expiration of the original term. ARTICLE XI CANCELLATION BY LESSEE Lessee, in addition to any right of cancellation or any other right herein given to Lessee, may suspend or cancel this lease in its entirety or suspend or terminate all or any of its obligations hereunder at any time, by thirty (30) days' written notice, upon or after the happening of any one of the following events: A. The suspension or termination of Lessee's Certificate of Public Convenience and Necessity. B. Any failure or refusal by the Texas Aeronautics Commission to permit Lessee to operate into, from or through said Airport such aircraft as Lessee may reasonably desire so to operate; C. The breach by Lessor of any of the covenants or agreements herein contained and the failure of Lessor to remedy such breach for a period of thirty (30) days after receipt of a written notice of the existence of such breach; D. The inability of Lessee to use said premises and facilities contin- uing for a longer period than thirty (30) days whether due to any law or order,. rule or regulation of any appropriate governmental authority having jurisdiction over the premises or the operation of Lessee or due to war, earthquake or other casualty. In the event that the Lessee shall suspend this lease or any of its obligations, as herein provided, Lessee shall have the further right, during such suspension, to cancel this lease or any of its obligations by giving Lessor thirty (30) days' written notice of such cancellation at any time prior to termination of the condition or event which gave rise to the suspen- sion; and, if Lessee does not so cancel, such suspension shalt terminate sixty (60) days after termination of such condition or event and written notice thereof from Lessor to Lessee. The period of any suspension of this lease in its entirety shall be added to the term of this lease or any renewal or extension thereof. ARTICLE XII NONWAIVER OF RIGHTS Continued performance by either party pursuant to the terms of this agreement after a default of any of the terms, covenants and conditions herein contained to be performed, kept or observed by the other party shall not be deemed a waiver of any right to cancel this lease for such default, and no waiver of any such default shall be construed or act as a waiver of any subsequent default. -9- ARTICLE XIII SURRENDER OF POSSESSION Lessee agrees to yield and deliver to Lessor possession of the premises leased herein at the termination of this lease, by expiration or otherwise, or of any renewal or extension hereof, in good condition in accordance with its express obligations hereunder, except for reasonable wear and tear, fire or other casualty, and Lessee shall have the right at any time during said term, or any renewal or extension hereof, and for ninety (90) days after the termination hereof, to remove any buildings, structures, or facilities it may erect or install on the premises and to remove all fixtures and equipment and other property installed or placed by it at its expense, in, on or about the premises herein leased; subject, however, to any valid lien which Lessor may have thereon for unpaid rents or fees. ARTICLE XIV ASSIGNMENT OF LEASE Lessee shall not at any time assign this lease or any part thereof with- out the consent in writing of Lessor; provided, however, that without such consent Lessee may assign this lease to any corporation with which the Lessee may merge or consolidate or which may succeed to the business of this Lessee, or may sublet any of the space leased exclusively to the Lessee hereunder. ARTICLE XV INDEMNIFICATION The Lessee, under the terms of this agreement, will not be in control or possession of said Airport and Lessee does not assume responsibility for the conduct or operation of the said Airport or for the physical or other conditions of the same. However, it is expressly understood and agreed by and between the parties hereto that the Lessee is and shall be an independent contractor and operator, responsible to all parties for all of its acts or emissions and the Lessor shall in no way be responsible therefor. It is further agreed that in its use and enjoyment of the field, premises and facilities herein referred to, the Lessee will indemnify and save harmless the Lessor from any and all claims or losses that may proximately result to the Lessor from any negligence on the part of the Lessee, its duly authorized agents or employees, and shall in all ways hold the Lessor harmless from same, provided the Lessor shall give to the Lessee prompt notice of any -10- claim, damage or loss, or action in respect thereto, and an opportunity seasonably to investigate and defend against any claim or action based upon alleged negligent conduct of the Lessee or its duly authorized agents or employees. The Lessor hereunder agrees to maintain in safe condition all places in and about said Airport which are used by, or made accessible to, the public, such as waiting roans, lavatories, parking lots, streets, sidewalks and other approaches, etc., and Lessor further agrees to indemnify and hold Lessee harmless from any and all claims against the Lessee arising out of and as a result of the condition of any of the publicly used premises in and about said Airport and Lessor further agrees to reimburse Lessee for any and all costs and expenses incurred in defending or settling any such claims. ARTICLE XVI NOTICES Notices to the Lessor provided for herein shall be sufficient if sent by registered mail, postage prepaid, addressed to: Airport Manager Route 2, Box 902 Corpus Christi, Texas 78410 and notices to the Lessee, if sent by registered mail, postage prepaid, addres- sed to Lessee, AMF Box 30167, Memphis, Tenn. 38130 or to such other respective addresses as the parties may designate in writing from time to time. ARTICLE XVII COVENANT NOT TO GRANT MORE FAVORABLE TERMS Lessor covenants and agrees not to enter into any lease, contract or agreement with any other air transport operator with respect to the Airport containing more favorable terms than this lease or to grant to any other air transport operator rights, privileges or concessions with respect to the said Airport which are not accorded to the Lessee hereunder unless the same terms, rights, privileges and concessions are concurrently made available to the Lessee. ARTICLE XVIII FEDERAL AVIATION ADMINISTRATION. Whenever the term "Federal Aviation Administration" is used in this lease, it shall be construed as referring to the Federal Aviation Administra- tion created by the Federal Government originally as the Civil Aeronautics -11- Authority under the Civil Aeronautics Act of 1938, or to such other agency or agencies of the Federal Government having from time to time similar juris- diction over the Lessee or its business. ARTICLE XIX HEADINGS The article and paragraph headings are inserted only as a matter of convenience and for reference and in no way define, limit or describe the scope or intent of any provision of this lease. ARTICLE XX INVALID PROVISION It is further expressly understood and agreed by and between the parties hereto that in the event any covenant, condition or provision herein contained is held to be invalid by any court of competent jurisdiction, or otherwise appears to both parties to be invalid, the invalidityof any such covenant, condition or provision shall in no way affect any other covenant, condition or provision herein contained; provided, however, that the invalidity of any such covenant, condition or provision does not materially prejudice either the Lessor or the Lessee in its respective rights and obligations contained in the valid covenants, conditions or provisions of this lease. IN WITNESS WHEREOF, the parties hereto have executed these presents as of the day and year first above written. ATTEST: LESSEE: FEDERAL EXPRESS CORPORATION Secretary ATTEST: City Secretary APPROVED: By DAY OF 1980: R. Marvin Townsend City Manager J. BRUCE AYCOCK, CITY ATTORNEY By LESSOR: CITY OF CORPUS CHRISTI, TEXAS By Assistant C ty Attorney Director of Finance • I I •., • • • •1 • A That the foregoing ordinance was read for first time and passed second reading on this the day of� . , 19 go , following vote: - Luther Jones Edward L. Sample Dr. Jack Best David Diaz Jack K. Dumphy Betty N. Turner Cliff Zarsky to its by the That the foregoing ordinance w s read for a seco d time a9 ,passed to its third reading on this the day of/ , 19n) , by the following vote: Luther Jones Edward L. Sample Dr. Jack Best David Diaz. Jack K. Dumphy Betty N. Turner Cliff Zarsky That the foregoing ordinancew s read for the on this the j4 day of q_ , 19 Luther Jones Edward L. Sample Dr. Jack Best David Diaz Jack K. Dumphy Betty N. Turner Cliff Zarsky ll PASSED AND APPROVED, this the /4 day of , 19 " ATTEST: ird time and passed finally , by the following vote: C y Secre ary APPR VED: f DAY OF 4_, 19ek0: J. BRUCE AYCOCK, CITY ATTORNEY By Assistant Ci¢J l% orney • HE CI OF CORPUS CHRISTI, TEXAS 15472 PUBLISHER'S AFFIDAVIT STAB OF ,TEXAS, lss. County .of Nueces. 1 t 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 Corpus Christi Caller and The Corpus Christi limes, Daily Newspapers published at Corpus Christi, Texas, in said County and State, and that the publication of .T c._ball2F7.ina_RT.climuS.e.YL$_Rn arra and approyed..Lg. t. city_..Cp_u.B£IlQf the CiitY. afe._:a_ of which the annexed is a true copy, was published in Corpus Christi Caller -Times on the 21st dey of...._�ril19 80 and once each consecutive.._..__.._ _..._....:1._ Times. $_2292.1._ Accounting Cler_. Subscribed and sworn to before me this_ ...... _day of— MaL.. 19...80 Lois Winn Notary Pubic, Nue • ounty, Texas ART( VI1) NO FURTICHARGES, FEES OI:. TAxES No rentals. Mal, license, excise or 0 faxes, tolls or other Clld ff e(Kept those herein ellpi0sly pro- vided, shell be charged against or collected from, directly or Indirectly, the Lessee or any tether person enLes - see, the prin ivileges of bey Mg, selling, using, searing, withdrawing, handling, con- suming or tranportl mate- riels or other supplies to, from or on the Airport; of making or performing agreements for work, mate- rials, or services at the Air- port; of transporting, load- ing, unloading or handling cargo or properly to, from or on said Airport; or for any other at the premises, Moll - Pies, rights, licenses, and pr Nothing In herein, however, shall prohibit jhe Lessor from renting spate for to a catering service reasonable riding food, prepared on the carport, or from granting •ronchi50s for the operation sf limousine and taxicab and -00t-a-Car services or from :hanging a flowage fee to op- vators vending fuels and ubrlcants on the Airport, ,r0vMe0 -that no such flo- wage fee will be charged for mils and IubrIcaMs deify - red Into Lessee's aircraft at he Af1pbrf. ` This provision provision Is netts Hat- t the right M Lessor to li- ens!) or tax Ina general or ,ondisrlminafory way any o fflce or business operation seated or conducted outside he boundaries of the Airport nd within the corporate Ilm- te of Lessor; and It Is not to unit Lessor's rlgM to !m- ese general and non- llscrIminatory ad valorem fixation on personal or real •roperty having a taxable Itus within the corporate mite of Lessor, Il any texas that man ad valorem 0r eneral sales taxes are paid •Y Leasee as a result of Its peration, the fees end ;hargea In Article VII hereof (hall be diminished In like amounts.ARTICLE IX DAMAGE OR DESTRUCTION OE LEASED PREMISES If any property, part or all zf which Is leased to Lessee, shall be partially damaged Sr wholly destroyed by fire sr other casualty, Eessor at Its Own cost and 00Pe050 shall repair or reconstruct the same with due diligence end within a reasonable time; and Lessee's rentals end other charges with re- spect to said properly shell se proportionately abated Irom the happening of such ismepe or destruction until luck time as the premises 0,011 be curt in order. The above listed rentals„ and fees shall became due , and payable on a monthly basis. Payments shell be made to the Airport Man- ager or to such other agency Mme City as may be specifi- cally designated In writing by the Lessor. The foregoing ' payments shell be made on or before the 15th day of the calendar month next suc- ceeding that for which pay- ment ayment In being made; Pro- vided that In no case will said amount be payable until fen ((0) days after receipt by the Lessee of a written bill there- for from Lessor; and pro - Mut that Lessee shell not be required to.pay In respect to any time or times during which the facilites and privi- leges of said Airport and premises do not measure up or conform to the standard set In this agreement, or are not for other reasons usable by the Lessee in all Its said operations and business. Payments shall be prorated for any portion of a calendar month at the com• mencement and termination of this agreement. CANCELLATION BY In the event Dthaf 111011 file a volunt Leasee !i bankruptty 05' thaattt prodeedo. le Isttiitutedaagainfst If eine -06600 Is thereafter adiudl- :ated bankrupt pursuant to Koch proceedings, 07 that the -ourt shall take Jurisdiction sf Lessee sunt toPoceedings brought• ender rhe Provisions of any s'regadl reargYenitat10n act, ss their a receiver pt Laesae's that L shell ball be dives 0r 100? Lessee shell be 61005506 if, or be Prevented by an Final action of any Federal or State authority from con- ducting end .Operatl0g - Its tranSthe carriageton system for trope of cargo end Airport, or In the event rcraft tthat Lessee shllkeep and obserrve any of the terms, covenants dry et the tions herein contained on tthe pert of the Lessee to be per- formed, kept •or at nerved, entl any such condition or default shall continue for lhlrty (305 days after the re• celLessor f written notice from to correct such condi- tion or cure such default, pri- or to the corr6ctrOa or Of cur - Ing of such condition or nate tthisflapplicable,aseetwenty 4,01 day wrhHftbetdm20 shall thereupon0030 aesnendds expire at the end 0f such maannernty (a)nd days Inthe same ef- fect 05 If 1t were Wthlne he 0lratlon of theater- ,, I --a. Leyaeaay7eea to pay a flet rate for electrical energy consumed Wife exclusive use based On actual cost to Lessor. 4. Lessee may from time to time rent space on the air- field upon terms mutually , agreed upon between the as parties yebe at a reed upon, for the location of shop 000 5.00. Leasee may from time 50 time Inose space for the stop.- age of fuels and propellants j of a mutually agreed upon lo- cation on the airfield, upon terms and conditions mu- 1 tually agreed upon between , the parties. 6. Landing fees paid by Lessee will be calculated an- nually In accordance with the following method; Esti- mated net annual airfield cost estimate times com- mercial alrllne allocated share (75%) plus excess Ila- bility Insurance times airline participation percentage dl- vided by the estimated an- nual landing weights of all airline users expressed In thousand point units 1390015 the fees par thousand pounds 01 certified maximum gross lending weight of Lessee's aircraft tending at the Air- port. Landing lees will be computed on the basis of the actual number of landings made at the Airport, but no charge will be made for courtesy, test, training. or fllahts. Fees will be rounded Mite nearest one-half cent. Airline participation per- centages will begin with the base srease of 2% wl/theta dded to each subsequent year or the percentage of Increase In airport enplaning passen- gers over the previous Galen. dar year, whichever Is great. er. 1975-76 Calculations -- Alrfleld•-Totem AC?lvlry Budget 525,396 Security a Fire Protection— Total Activity Budget 128,559 Airport Administration -20% Activity Budget 9,565 Director M Public U111111;35635— 26,4% Activity Budget 1,104 General Administration-• 26.4% Activity Budget 16,007 Interest on Bonds—Bond Re- pitymeniSchedule 122,012 Depreciation—Annual Finan- cial Report 111,687 Subtotal 1414,333 Less Farm Lease Income -- Budget Estimate (26,000) Security Service Charges Budget Estimate (45,000) a Estimated Net Annual Air- field Cost • 1342,633 Estimated Excess Li015111, Insurance d 0342,633 x 75% equ55,500 als d 0256,975 .1256,957 + 55,500 equals 476 61,475 x SS% equals 5144,361 1144,361 divided 626,174/1 Pounded 10.2355/1,030 near half cent equals lt00 pounds Improvements made to the terminal sum - pies which are used by and Will benefit Lessee and/or Its passengers will sublecr the Lessee to additional space rental, the amount to be ne- 901(01ed with the Lessor. term, et tots egreoment' wlrl 5500 b0 In 00nirol or posses tion of said Airport and Les see does oassume respon- sibility forr The c0550070 or operation 1055 et the 6016 Airport or for the physical or other conditions of the same. How- ever, It Is expressly under- stood and agreed by and be- tween the parties hereto that the Lessee Is end shall been Independent contractor and 'operator, responsible to all parries for 65 of Ire acre or I omissions and the Lessbr shell In no way be respon• Bible therefor. It Is further Feed that In its use and en - Payment of the field, prom - and facilities herein re• •ferred to, the Leasee will Indemnify and save harm. less the Leeson from any and :all claims or losses that may 'proximately result to the Lessor from any negligence ,on the pert of the Lessee, Its !duly authorized agents or .employees, and shall In all Iways hold the Lessor harm- less from same, provided the Lessor shall give to the Les. see prompt notice of any claim, damage or loss, or ac• Hon in respect thereto, and an opportunity seasonably againstanyclalm or action �tcOnkitunAyYhe ed negligent duly authorized agents or employees, The Lessor hereunder - agrees to maintain In sate • - condRlon all place, In and about said Airport which are used by, or made accessible t0, the public, such as welt - Mg rooms, lavatories, park Ing lots, streets, sldewalksl and Lessor further approaches,065 to Indemnify and hold Lessee harmless from any and all deltas against the Lessee arising out of and ase result of the condition of any of the publicly used premises In and about said Airport and Lessor further agrees t0 re- imburse Lessee for any and all costs and expenses in- curred In defending or set- tling any such claims. ARTICLE XVI NOTICES Notices to the Lessor pro - 01606 for herein Mail be suf- ficient If sent by registered mall, postage prepaid, ad- dressed to:. Airport Manager Route 2, Box 902 Corpus Christi, Texas 78410 and notices to the Lessee, If sent by registered mall, post - Lessee Prepaid, addressed Box 30167 Memphis, Tenn..30530 or tb uch other respective ad - r08506 as the parties may eslgnete In writing from ARTICLE XIX HEADINGS The article and paragra headings are Inserted only a matter of convenience a, for reference and In no w. define, limit or describe t scope or Intent of any pro, Bion of this lease, ARTICLE XX INVALID PROVISION It Is further expressly u 60755 od and agreed by er between the parties here that In the event any co anent, condition or proviolc herein contained Is held to t invalid by any court of con wIrisent lura 75 fol bothrppaaarte to 00 Invelid,1he in0olltllty r any such covenant, =Mho or provision shall In no wa affect any other covenan condition or provision herel contained; provided, hoe ever, that the Invalidity a any such covenant, con6ltlo, or provision does not meter! ally preludICe either the Les dor or the Les6ee In Its re spective rights an, obligations Contained In M. valid covenants, condition! or provisions of this lease. !N WITNESS WHEREOF, the parties hereto have axe cured these presents as et the 6607 006 year first above ATTEST: FEDERAL EXPRESS CORPORATION Secretary ATTEST: LESSOR: City Secretary CITY OF COPRUS CHRISTI, TEXAS APPROVED: — DAV OF ---- 1985: B R. MarvinTownseenndd J. BRUCE AYCOCK, CITY ATTORNEY By Assistant City Attorney Director of Finance TERM LeaD80' - neve and hold laid rpt. !, fact lit' ea, rights, LT. sea and privi• Iegas sof tot th 1A paragraphs A o U Clus of Article I, for a }arm Cpmmencing9an day00f 11 the-- and ter rariat5ll1 at he end of the 7th dap of: eRpguet, 1985, samor L dated as heeaf QUIET ENJOYMENT Lessor represents that It hof the rlDht to lease mid property end appurtenances together with all 0000 facil- ities, rights. license* and privileges herein granted, end has NS power and au- thority to enter Into this lease In respect thereof; and covenants that upon per- tormanced of the Agree- ments on the part of Lessee to be performed hereunder, Lessee 5h011 peaceably have and enloy said premises, ap- purtenances, p- t rights, licenses facilities, dprvl• 1ege5. ARTICLE IV DEVELOPMENT, MAINTENANCE AND -OPERATION-OP-AIRPORTLessor agrees 0000 it will develop and Improve, and at all times maintain and oper- ate with adequate and ef- ficient 9pPa Id.el enA d 0Fei Pah Terminal Building, and the appurtenances, facilities end services now or hereinafter connected therewith, end keep said Airport and Its ap- proaches free from otatruc• tion. congestion and inter- ference forth -0 safe, convenient and proper use hereof by Lessee, and will maintain and operate said Airport m u 0 entitle It 0 the approved rating by the Federal Aviation Agency and all other appropriate regulatory authorities Imre- turreef operations off Lessee. Lessor shall provide ade- quate de- loading Illumination Brea for with aeminl unm of three foto ot ltdies at distance from the ramp fence. It Is expressly understood ttphat the Lessor will keep the Building attre tin t elY fur- nished, and will provide and supply adequate light, elec- tricity water 1 during pub- lic weather and air conditioning during warm weathersuf- ficient takeep the building a reasonable temperatures; tanners and other cleaners nir- ecessary all spaces hIn the Terminal Building at all times clean, neat, orderly, sanitary and presentable; such personnel as may be necessary 0 facilitate the use of he Airport and Termi- nal Building and the OP- purtenances, facilities end services as aforesaid by any one hereunder entitled to use the same. Lessor agrees that It will provide domestic water, me- chanical ecessary foracooling nt and and Ina heating Terminal Building space together with the nec- essary dHlonhot nd a and heat1er to said space. ARTICLE V SPACE FOR GOVERNMENT AGENCIES The Lessor covenants and agrees that If It should fur• nish apace and tacllitlee In - ARTICLE VI RULES AND REGU• LATIONS Lessee covenants and agrees to observe and obey all reasonable and lawful rules and reguletlbns, not In confll_t with the provisions hereof, which may from time to time during the term here- of be promulgated and en• forced by Lessor for oper- ation at said Airport. ARTICLE VII RENTALS AND FEES Lessee agrees to pay Les- sor for the use Of all the lremises, facilities, rights, icenses and privileges granted herealtder, the fol- lowing rentals, fees and char es: -_ 1.s4S9 peCintenth foreach exclusive PuiilleAddresml- crop e . In Lessee's 2. d4.50 -Per -month for each Intenaetmtr68cat ion In- srrdusie nested In Lessee's sp1l9�Ce. In the event that It be- coflleo mutually agreeable to Install an inter- cernrriWlCatIon system by the Southwestern 8011 Tele- phone Company, so that the ntercommunicatlon system is not provided by Lessor, then this charge shall not be made. peaP'end eppreved by the City_ ouncll Of ilia City of Ino onn Aprils16,ti oTM: read- , AN ORDINANCE No. 15472 -THORIZING THE C MANAGER TO EXE - CUE A LEASE AGREE CE T BETWEEN THE I. OF CORPUS CHRISTI AN FEDERAL EXPRESS CORPORATION COV• ER INQG�r THE SUBLEASING OF.SPACE AT CORPUS CH;R (STI- INTER- pa NTE R- NggT��IONAL AIRPORT AND TI4.E.USE OF SUCH AIR• PART, ALL AS IS MORE FLY SET FORTH IN MTH LEASE AGREE. S, SUBSTANTIAL OPY OF WHICH IS AT - AAD EA HERETO AND A PART HEREOF, MA DEXHIBIT"A". BE IT ORDAINED BY THE CICOUNCIL OF THE C.1, OF CORPUS CH TI, TEXAS: SECTION 1. That the City Mepeger be and he Is hereby authoNzed 10 execute a lease agreement between the City of Cplsue Christi and Feder• 01 E,ypfass Corporation, cov' arioqQ a sublmsing Of space et me -Corpus us Chr at1 Inter• netiph61 AAirport� ndllthesu e of more fully set forth In the leate agreement a sub- ' stantle' copy of which Is at- tached. hereto and made a Pert hereof, marked Exhibit TH, NTATE OF TEXAS N.T CO Y OF NUECES T Is, Lease Aggreement, made, ad enteredtinto 00018 the, re— day 950, by 90040 between the City of in byrd�11 through Its City Macting an' ager., with authority duly conferred by the City Count' ail, a municipal corporation, organized and existing under the ,`laws of the State of Texas, situated in Nue0ea Co)irttyr Texas, hereinafter retferred to sometimes as LESSOR, and Federal Ex• preps Corpo•e11on, here- Inatter sometimes referred to as LESSEE, •—WITNESSETH: - ARTICLE I PREMISES �seof, as he Corpus oChrrisr ti In jj catxd aIn N es Airport, Iy- w0d 4 N here's , far the Texas, does hereby, for f r uses and purposes and ot inecrnst,ted,lon as 1110nd 100 here- inafter stated, demise and lee unto hereby hit and take does hereby hire and tang I(r010Lessor,1)2'the following premises nd, without Ilmit• n510 enarelsty hereof, the 9 facilities, rights, 11. nd In actionwithAlon ry n port,-es more particularly Iter set forth: A.'1 SE OF AIRPORT. The uSever Lessee, its employ- es,-pwSsengers, gu8505. Pa- trons end Invitees, In com- mon --with other duly aur4red users of the pub• Ili- rtlone of said Airport e _ap urtenances, the samdep'b81 more particUIOr• matador"ExhlbitdA", art teched here0 and made e part hereof for more particu- lar Macrame, together with all facilities, Improvements, wllMdtf neve been of mag be hereafter provided for com- mon use at or in connection with aald Airport. Q PECIFIC RIGHTS AT Al MAT. Tn addition to all rigbfs..elsewhere %rented•In 'tedld 4.0116030U 044 _410^ 00940004 'SPJa1)u01} .041," •lepUn abue4nluT'411M e3uOP4a1aa Ul 'euone7OrTUeI -u00003 ie '110llddn5 40440 Pub aesa018 '110.'atm .osb0 Joy seHTIPOI 000.4011 o4enbOPe'uo0n pesiOo 411004 -nw Bq 01.e00110201 Pub —II aJ poo8 u( deer film-cdssel 08.00 dWB4 p840501 Al4uelu0suo3 40 Wno0 011VL -uoee0. 8 to 050 944 9utpb{o -ui 4ueuedlnbe .00440 JO 44545 ..010 4o 0uII4504 pub141 041 '13019J8/1801318480 14014 -10003 'OUiUlb4ulbw efbd -8J '801050100 'Ouipee1 'H0801904 'bulbubl 041 (Z1 ARTICLE XIV -- ASSIGNMENT OF LEASE • limo easesign this lease or any part thereof without the con. 5800 In writing of Lesser; provided, however, that without such consent Lessee may assign this lease 0 any ARTICLE. XI CANCELLATION B Loses, Lessee. In addltl00 tc right of ceiCellatlatt or other right 00909(0 0q40 Lessee, me- *0apend or cel this lease 111 Ih ell or suspend or terminal or any of its obligations under at any time, by t (30) days' written nr upon or after the happl of any one of the toile events: A.• The suspension of minetlon o1 Lessee's Cs cats of Public Conven and Necessity. B. Any failure or re by the Texas Aerone Commission to permit see to operate Into, fro through said Airport aircraft as Lessee may sonably desire so to 0per C. The breach by Lest any 01 the covenant agreements herein cot ed and the failure o1 1. t0 remedy such breach 30rio0 of thirty (30) dal :er receipt of a written n 10 the existence -et *reach; D. The inability of LI o use said premises ar :fifties continuing for a it paned than thirty Jays whether due to en ,r order, rule or regul of any appropriate g0 mental authority havin risdlctlon over the prer or the operation of Less due to war, earthquiI other casualty. In the event that the see shall suspend this or any of Its obligation herein provided,L0 shall have 1000 furter r during such 105000slo cancel thla lease or any obligations by givingL. thirty (30) days' wrtte 0Ce of such cencelleth any time prior to 15 nation Of the 00041110 event which gave rise t suspension; and, If L, does not m ranee!, such pension shall terminate (60) days after termin of such condition or I and written notice th from Lessor to Lessee. period of any suspensh thla lease In Its entirety be added to the term o' lease 0r any renewal 0 tension thereof. XII NONWAIRTICLE ER OF RIG Continued performani either party pursuant t terms of this agreemer ter a default of any o terms, covenants and c tions herein contained performed, kept sr_obst by the other party she! be deemed a waiver of right to cancel this leas such default, and no W. of any such default she construed Or act es a w. of any subsequent data ARTICLE XIII SURRENDER OF POSSESSION Lessee agrees to yield deliver 0 Lessor posse: of the premises leaned ho e t the termination of lease, by expiration or wise, or of any renewal a tension hereof, In good a lion In accordance wit express obligations 1 under, except for reesor wear and tear, tire or c casualty, end Lessee have he right et any during said term, or an newel or extension he e nd for ninety (90) days l the termination hereof, 1 move any buildings, 5- e.,.o. ,.. Ons -18•184 u pumps, motors, fillers and other ..appurtenpnces In- cidetal to the uta thereof, such structures and 08 - be and re- naloft ' seUeratlle property (31 -.The documentation of shipments and the loading end'efaioading of cargo and pr at said Airport by such motor vehicles or other means of conveyance as Les- see" sof desire or regUlre In the, ,:ration of Its air trens- ntY-n system, with the i1gphtto designate the pa rtic- ulerroarrler or carriers who shelter may. regularly trans- portrLessee'S property and cargo 4o and from the Air- port, provided, however, they nothing contained here- In--shati prevent the City froth granting the franchise or"fyanchlses for limousine service: t84 -The purchase at said Alatift of Lessee's requlre- mwatgof gasoline, fuel, lubrl- catidg,oil, grease, food and other supplies, and any other materials and supplies from pny,person or company of Lessee's choice, and the mafang of agreements with seg,, Arson or company of Lesson's r Les for work to be done far tallae; (S) _The installation and op. erat qf1. of identifying signs on the leased premises, the general type and design of suchs Sher signs 10 be sub(ect to the approval of the Airport Manager, such approval not to be arbitrarily withheld; .(et The installation, maln- tend1tce and operation of suffmadio, communication, meteorological end aerial navIga,ttion equipment and facilities In, on and about the O ssMise5 herein leased and sald:Rlrport as may be nec- es5ary,.or convenient in the opinyrs of the Lessee for Its O ons; provided that the tlort o1 such equip - me .and facilities es might !Rte ere with full end proper use of the Airport shall be sub(act to the approval of the Airport Manager, such ap- w! praval Id; not to be arbitrarily T rights, licenses and - prly togas granted the Les- sp oder this Article 1 with re to the performance of g d services end achy- ' Ides an connection. with Inc • alrtrinsportatlon operations • at the Airport may be ex - tor anis on !behalf of tInc he Lessee by any company or person des- ignated by Lessee. C. SPACE IN TERMINAL lease BUILDING.The frompht to s other air transport operators holding currentleasesleases on Terminal Building for sspauch ris uses ea Len see may desire to melte incidental connection on its operation of an air transportation syS- the right ands option hat any time and from time to time during the term hereof and of any extension or renewal, to lease tor the exclusive use of Itself or of any air trans- port company subsidiary to aor ddi- tional pace let it, any noon! spa operation of the Airport pert end ett operation time the as ed et the not leased t 01 ere, whether such space leased hereunder to the space e hereon wit or y otherwise, rig to - ...or with any or all rights, D. Lessee and iRKING Cts The use bye In common only °wityh t s, wler the other air ybe 185 5085 01 s Ceoemay the Airport 'sees t spa es, of oda- end their employe quare lvateCular parking ypscp0 s015tlOr nIna as ild- Ing. to sal0 Terminal par Ing. A charge of 57.90 per month per employee maybe mace forthe charge wlllt be space• levied only In the event that additional parking spate must be built to avW'11°les. moclate employees' E. RIGHT OF ACCESS, INGRESS AND EGRESS. The of access, ingressdand egress with respect to 1110 premises outlined In opaLreas- - garlaspahns iopara- graphs Agto D Doose, sae, Its ernpl0Yee5,e10Gns, h gars, , uesfs�Dt mater!• insanes, Supp 00}���servlce, Its ordthelruelrcraa 80110 - ment, vehicles,, machinery and other prdparinaF�f�sublet t0 Airport s8Ctlr M regu• Ltlons, r th8ildl persons or Lessee, of tp., property. STATE OF TEXAS, 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 Corpus Christi Caller and The Corpus Christi Times, Daily Newspapers published at Corpus Christi, Texas, in said County and State, and that the publication of PUBLIC NTOCE Notice is hereby given that the Cid Council of the City of Cornus Chrigiti }ss: PUBLISHER'S AFFIDAVIT of ,which the annexed is a true copy, was published in on the24th day of March 19_1142, and once each__ _ __ _.... —.....-.--- consecutive_ 1 Times • 17.71 Elma Rodela $__1.7. Accounting Cler Subscribed and sworn to before me this_..: 27th _day of March Lois Winn Notary ' ub c, Nueces County, Total; 4 —pUHC1r:-N3TICE-- -1, Notice is to rery given that '. ,The City Count, N the City of ` Corpus Cnrisl_ has, cr.. I'le 19111 oat of March, 1930, ap- prove° on first reading an or.. dinance authorizing' the City' MSnager to execute a lease - agreement between the City. of Corpus Christi and Feuer - al Express CorporatIQf, 4oy ' ering th? subl0asi t Qf inter, ,Corpus Christi Infer sue national_AirpoFt and the=use of of such airport. The futl.teat of the ordinance Is bIO City $ of the Office of the City Sec retery, - Read,:: City City Secretary City of Corpus Christi, Texas. F. PUBLISHER'S AFFIDAVIT STATE OF TEXAS, tsS: County of Nueces. f 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 Corpus Christi Caller and The Corpus Christi Times, Daily Newspapers published at Corpus Christi, Texas, in said County and State, and that the publication of PUBLIC NOTCE IS HEREBY GIVEN that the city Council of the City of ComChristi of which the annexed is a true copy, was published in .r_Cornus-Chriiii,_CgI,le. .Ti1[1.@.P on the. 31st day of. March _.19_80 and once each.._ —.. consecutive 20:02 Elma Rodela Y l — Accounting Clerk Subscribed and sworn to before me this_ ZPd day of !MAL._ Lois Winn Notary Public, Nueces County, Texas co -*FF{ . 7,'I, " PUBLIC N)TP_E Notice Is h^• --by given that the City of t..a Coy of Corpus Christi has, oi, the 26th day of March, 1960, ap- proved an second reading, having previously approved on first reeding on the 19th day of March, 1980, an ordi- nance authorizing the City Gager to execute a lease agreement between the City of Corpus Christi and Feder- al Express Corporation cov- ering the subleasing of space t Corpus Christi Inter- national Airport and the use f such airport. The full text 1 the ordinance Is available t the Office of the City Sec-, etery. - -5-Bill G. Reed, City Secretaryq Corpus ChrCIlylstlar Tex, F