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HomeMy WebLinkAbout16771 ORD - 12/23/1981AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A LEASE AGREEMENT WITH SUPERIOR HELICOPTERS, INC., COVERING A COMMERCIAL HANGAR LEASE PLOT AT THE CORPUS CHRISTI INTERNATIONAL AIRPORT, WITH UTILITY LINES, A ROAD EXTENSION, RAMP AND TAXIWAY EXPANSION TO BE CONSTRUCTED BY SUPERIOR HELICOPTERS, INC., AND PAID FOR BY THE CITY OVER A PERIOD NOT TO EXCEED SIXTY (60) MONTHS THROUGH RENT REDUCTION AND FUEL FLOWAGE FEE REDUCTION, ALL AS SHOWN AND MORE FULLY DESCRIBED IN THE 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 the City Manager is hereby authorized to execute a lease agreement with Superior Helicopters, Inc., all as more fully des- cribed in the lease agreement, a substantial copy of which is attached hereto and made a part hereof, marked exhibit "1". Said agreement covers a commercial hangar, a fixed base aviation lease plot, and the. repayment 5 through reduced rental and fuel flowage fees of construction expenses incurred by Superior Helicopters, Inc., for extension of a sanitary sewer line, a water line, an asphalt road, an asphalt ramp and a portion of a taxiway. The agreement shall be subject to the following conditions: A. Superior Helicopters, Inc., shall pay a rental rate of seven and one-fourth (7 1/40 cents per square foot per year for the improved area; two and one-half (2 1/2¢) cents per square foot per year for the unimproved area; and a flowage fee of six (6¢) cents per gallon of fuels purchased, except that sold to commercial airline aircraft holding valid operating contracts on the airport, and except that lost due to theft or leakage upon furnishing proof of such loss. The City retains the right to adjust the rates for fuel flowage fees with such rates to be published by ordinance duly adopted by City Council. 8. Superior shall immediately begin making improved area rental payments on sixteen thousand eight hundred (16,800) square feet for a hangar which is expected to be built by Superior by April 1, 1982. 16771 SEP 2 81984 MICROFILMED HANGAR 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 Superior Helicopter, Inc., Texas corporation, hereinafter referred to as Superior, upon these terms, performable in Nueces County, Texas. ARTICLE I DESCRIPTION OF LEASED SPACE City leases unto Superior an area designated for commercial hangar located generally on the west side of the terminal building as shown on the attached drawing marked Exhibit "A" which is made a part hereof as if copied verbatim herein and specifically described as follows: Starting at the intersection of the extension of the northern boundary of taxiway "P" (perpendicular to runway 13-31) if extended in a northeast direction, with the extension of the northern boundary of taxiway "P" (parallel to runway 13-31) if extended in a northwest direction, to a point for a place of beginning; • Thence turning left ninety degrees and continuing northwest parallel to the northeast boundarL of taxiway "P" for a distance of 750 feet for the southwest corner; Thence turning right ninety degrees continuing northeast for 350 feet for the northwest corner; Thence turning ninety degrees continuing southeast along a line parallel to the northeastern line of taxiway "P" for a distance - of 750 feet for the southeast corner; Thence turning right ninety degrees and continuing southwest 350 feet to the place of beginning;, ARTICLE II PRIVILEGES, RIGHTS, USES AND INTERESTS A. USE OF LEASED PREt4ISES. Superior shall use the leased premises for commercial hangar operations herein defined and for no other use without the specific written permission of the City; (1) Housing aircraft in hangars and related shop and office use; (2) Engaging in any activity related to the business of repairing, leasing, purchasing, or otherwise acquiring, selling, exchanging, dispensing, financing, insuring, or dealing in or distributing aircraft of every class and description, including engines, motors, aircraft instruments, supplies and accessories; Page 1 of 11 (3) Servicing of aircraft with fuels and lubricant.; (h) Operation of aerial taxi and sightseeing servjces and aerial advertising, aerial survey, aerial photography and mapping; (5) Operation of schools of flying, navigation, aviation mechanics, aerial survey, aerial photography, aerial designing, a rial construction; (6) Aeronautical and allied research; (7) Operation of the business of nonscheduled trfansportation of passengers; and (8) Undertaking of any phase of aviation activilty for pro- fit related to or contributing in any way to aircraft sales, seivicing and distribution or aerial navigation. B. RIGHT TO USE AIR FIELD. Superior shall have th use the public areas and public airport facilities including th ways, aprons, ramps and navigational aids and facilities in co so authorized, subject to and in accordance with the laws of of America and the State of Texas, and the rules and regulat by their authority with reference to aviation and air navig cordance with all reasonable and applicable rules, regulati and Charter of the City. _ C. RIGHTS ENUMERATED.. Superior shall have t 1. To sell aircraft fuels, lubricants and leased premises, on any other public apron, and within any area. City reserves the right to lease or rent the apron jacent to the control tower annex building, known as the as shown on the master plan of the Corpus Christi Interna to an operator or operators as a separate business for the fuels, lubricants and propellants and/or for the operation lities on said apron. In the event that the transient ap right to runways, taxi- mon- with others he United States ons promulgated ion, and in ac - ns, ordinances e following rights: propellants on the private hangar mmediately ad- ansient apron, Tonal Airport, dispensing of of tiedown faci- n is operated as a separate business, then Superior shall not have the righ to the use of the tiedowns on said apron or to sell and dispense fuels, ubricants or propellants on said apron. 2. To store aircraft fuels, lubricants, .nd propellants on the leased premises. 3. To maintain and operate mobile equi.ment when reasonable and necessary to fill and dispense aircraft fuels, lubr cants and propellants on the leased premises and within the area described wove, with right of access to the commercial ramp and connecting taxiways. 4. To maintain, store and service air raft which shall in- clude hangar storage of aircraft, major and minor ove hauling and repairing of aircraft, repairing, inspection and licensing of sure, and purchase and sale of parts, equipment and aircraft accessories. Page 2 of 11 5. To purchase and sell, within the eased premises, aero- nautical charts, publications, caps, sunglasses, compu ers, radios, and other aviation related items normally sold and dispense 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 aircraft mecha- nics. 7. To place and erect signs and advertising material within the hangars, offices and shops on the leased premises at Superior's discre- tion; and to place and erect signs and other advertising material on the outside of Superior's buildings, shops and offices, pr-vided that the size and shape of such signs shall conform to the general appearance of the airport premises, and be subject to the approval of the Airport Manager; and to place and erect signs and advertising material at other locations on the airport, provided that written permission is obtained from the Airport Manager prior to the installa- tion of any sign or advertising material at any location outside of or off the leased premises, and subject to the order of the Airport Manager to require the removal of such installations or any of them at any time. D. ACTIVITIES AND USES EXPRESSLY PROHIBITED. The following activities and uses are expressly excluded from this lease and Superior is prohibited from any such use or activity except as noted: 1. Ground Transportation for hire. Superior 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. Superior 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 Superior does not engage commercially in the taking or sending of telegrams, money orders, etc. 3.• Automobile Rental Service. 4. News and sundry sales except for those that may be items as mentioned hereinabove. 5. Advertising concessions except for those that may be conducted within Superior's hangars, offices and shops. 6. Barber, valet and personal services. 7. The sale of food and/or drink except from dispensing machines located within the hangars, offices and/or shops. However, no cafe or cafeteria type of service shall be operated. 8. The sale of flight and/or trip insurance. 9. Commercially engaging in the business of making reser- vations for hotels, motels and other lodging. Page 3 of 11 ARTICLE III CONSTRUCTION OF HANGARS AND IMPROVEMENTS Prior to construction of any hangar or improvement on the leased premises, Superior 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. 1. Superior agrees to construct an asphalt ramp apd taxiway approximately 200 ft. by 150 ft., a 25 ft. wide asphalt roadway extension, 8" water and sanitary sewer line extensions, all at an estimated cost of • ._ $164,000. Construction of the ramp and taxiway will at such g-ade and of such material so as to be in keeping and in accordance with p1 ns and specifications which are subject to the approval of the City. Said construction shall commence within 30 day from the date of this lease and proceed with due diligence, all at the expense of Superior. Superior shall be entitled to reimbursement for the actual amount ofisaid corlstruction cost .by crediting the rental and flowage fees which are otherwise payable under the terms, of this assignment until the said construction cost (including interest limited however, to actual interest paid andrfurtherlimited to interest at ten per cent.per annum and further limited to int rest on construction costs reduced by monthly credits which would oth rwise be payable except for the right of reimbursement contained in th s paragraph) shall have been reimbursed to Superior, provided, how'ever, that said reimbursement shall not extend beyond 60 months from the date hereof. After such reimbursement of said construction costs or the expiration of 60 months from the date hereof, whichever first occurs, no ful~ther reimburse- ment shall be due Superior. The City will maintain the 'amp road& utilities constructed. by Superior. _ 2. Superior will construct at its own expense a iangar approximately 120 b2' 140ft., a parking area for vehicles, and provide any necessary sidewalks and fences, all at Superior's own expense. 3. A setback area of 50 feet wide will be maintained on each side of the area to be leased (on both sides 200 feet in length) where no improvements, parking lots, or construct- ARTICLE IV ion of any kind will be permitted. ACCEPTANCE OF PREMISES Superior acknowledges that the premises have beer 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) ye rs, provided Superior has not defaulted in any of the terms, conditions, Ind provisions hereof. This term shall commence upon completion of construction of the hangar and all requisite conditions for compliance with Article VIII, Sec- tion 2 (c) of the City Charter. Page 4 of 11 ARTICLE VI RENT Superior will pay City a base rental fixed as of July, 1960 and supplemented as follows: 1. Three cents (3 C)per square foot per year for the area covered by hangars, shops, offices and/or other improvements. 2. One Cent (1 $) per square foot per year for the area within the leased premises between the building setback lines where buildings could legally be constructed. 3. Thirty-three and one-third (33-1/3 %) percent of the gross income from parking and/or tiedown facilities located on any ramp that may be constructed in the ramp area, shown on Exhibit "A". 4. Two (2;:) cents per gallon for each gallon of gasoline and/or other propellants and fuels purchased by Superior, except as to gasoline sold to commercial airline aircraft holding valid operating contracts on the airport. Superior 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. Superior will not be charged for storage tanks within leased premises, except ground rental, and will submit storage tank plans to the City for approval prior to installation. Fuel storage sites on property outside the leased premises will require a separate lease. 6. At the end of each three-year period after the execution of this lease, either City or Superior may request an adjustment in the ground rental rates, and the flowage fees as above set out, which adjustment shall be computed by multiplying such rate and fee by a fraction, the denominator of which shall be the arithmetical average as of July, 1960 of the indices (A) of the United States Bureau of Labor Statistics for hourly wage rates of all workers in manufacturing and (8) of all commodity wholesale prices, and the numerator of which shall be the arithmetical average of said indices (A) and (B) for the last available twelve (12) monthly indices immediately preceding the request for adjustment. Should either of said indices change substantially as to form and basis of data or manner of publication, the above adjustment provision may be amended in writing. On the base date, July, 1960, the United States Bureau of Labor Statistics index for hourly wage rates for all manufacturing employees was 52.26 per hour and the commodity wholesale sale price index was 100.8. Such formula must result in a change of at least 1/4$ per unit or no adjustment shall be made, and all adjustments shall be made to the nearest 1/4. City retains the right to adjust the rates for fuel flowage fees set forth herein, such rates to be published by ordinance duly adopted by the City Council. City will put this same clause in any renewal, amendment, or extension of any other existing fixed base operator lease as well as any other new fixed base operator lease. Effective as of the date of the execution of this agreement, the rents based on the foregoing formula are as follows: The Improved Area, seven and one-fourth (7-1/4) cents per square foot per year: Unimproved Page 5 of 11 area, two and one-half (2-1/2) cents per square foot per year; Flowage fee, six (6e) cents per gallon. Ground rentals as set out here and above shall be computed on a monthly basis and shall become due and payable on the first day of each calendar month throughout the term of this lease. On the first day of the next calendar month after the rentals begin under this lease Superior shall prepare a report in writing on a form approved by City showing the total number of gallons of gasoline fuels and/or other propellant purchar: by Superior and the total gross receipts on the above-mentioned apron duriny- 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 mont Superior shall submit a like report and payment therefor for each succeeding month during the term of this lease. Superior will keep full and accurate records of all transactions, purchases, sales, and income, both from cash sales and credit sales, that in any way concern rental to City; and will hold all books and records covering such sales open to inspection by City at all reasonable times. o 7. City appoints its airport manager as its agent to receive all rentals and reports under this lease and Superior will submit said reports and payments to the Airport Manager. City may designate others -as -agents to inspect Superior's books and records, such inspections to be performed at reasonable times during working hours. 8. In the obligations of Superior placed on receipts and other ed h. addition to all other remedies which City may have to enforce Superior, City shall have a lien on all property of said premises for all moneys, rents, shares ofgross obligations of Superior. 9. By the terns "Transient Apron" is meant that apron east of the control tower building approximately two hundred eighty (280) feet in width extending from taxiway "N" southward to a line which is the eastern extension of the south line of the commercial apron running south of the terminal building and control tower building, said transient apron having a length north and south of approximately seven hundred fifty (750) feet. The term "public apron" shall include, in addition to the transient apron above described, the following area: All of that area shown on Exhibit A as "commercial apron" and being an area approximately 300 feet in width extending north and south and extending east and west a distance of approximately 1,050 feet, all of which area lies as shown on Exhibit A south of the airport terminal building and airport control tower building. 10. City reserves the right to change the base date of July, 1960 referred to above in the event that the City makes the same change in any other existing or new fixed base operator lease. Page 6 of 11 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 Superior by this lease. B. To make water and wastewater service available upon the same basis as applies to residents within the City of Corpus Christi. Superior shall pay all charges for water, wastewater, electricity and other public utilities supplied to Superior and/or Superior's premises during the term of this lease as such charges become due and payable. ARTICLE VIII UNDERTAKINGS OF SUPERIOR Superior_further convenants as follows: A. At its own expense, to improve the leased premises by the construction of hangars, offices, shops and/or other improvements, as herein- above mentioned, and to maintain said improvements and leased premises in a presentable condition consistent with good business practice and equal in appearance and character to other similar improvements on the airport. B. To remove from the leased premises all waste, garbage, rubbish, junk, worn-out parts and other refuse, and not to deposit the same or allow the same to accumulate, except temporarily in connection with collection for removal, on any part of the leased premises or other property located within the airport site; provided, however, that City may provide garbage service for a reasonable fee consistent with charges made to commer- cial establishments of a similar nature. To make adequate provision for and to dispose of waste oils and lubricants off the airport property and never -put or allow to be put any such waste oils and lubricants into the airport wastewater system. C. To supply good, prompt and efficient service adequate to meet all the demands for such service at the airport on a fair, equal and nondiscriminatory basis to all users thereof, and to charge a fair, reasonable and nondiscriminatory price for each unit of sale or service; provided that Superior or its tenants and sublessees will be allowed to make reasonable and nondiscriminatory discounts, rebates or other similar type of price reductions to volume intended to nor shall be construed to regulate Superior's charges for craft storage and aircraft charter related to such service. purchasers. Nothing herein contained is as vesting in City the power or authority student training, aircraft rental, air - service and services specifically ARTICLE IX GENERAL PROVISIONS A. INDEMNIFICATION. Superior is and shall be deemed to bean independent contractor and nneratnr rpcnoncihln +., .n r; r :._ respective acts or omissions and those of its agents, servants, employees, invitees, tenants and sublessees, and City shall in no way be responsible therefor. In the use of the airport and in the maintenance, erection or construction of any improvements thereon, and the exercise and enjoyment • of the rights herein granted, Superior 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 Superior, Superior's agents, servants, employees, construction contractors and invitees, and for those of its tenants and sublessees. Superior will carry public liability insurance in the minimum sum of 5500,000 single limit. All insurance shall be carried in a responsible company and sahll 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 City shall be deemed sufficient if in writing and manes, postage prepaid, addressed to the Airport Manager, Route 2, Box 902, Corpus Christi, Texas 78410, or to such other address as may have been designated in writing by City from time to time. Notice to Superior shall be deemed sufficient if in writing and mailed, postage prepaid, addressed to Superior at 900 N.E. Loop 410, Suite 600, San Antonio, Texas 78209. C. TAXES. Superior will pay any and all-ieal and personal • property taxes levied from time to time upon the improvements placed upon the leased premises. D. All of the terms, covenants, and agreements herein contained shall be binding upon and shall inure to the benefit of the heirs, successors and assigns of Superior and City. • E. DESTRUCTION. In the event that Superiors improvements or the airport is damaged or destroyed by acts of God or through enemy attack or for any other reason outside the control of Superior and City to such an extent that the airport cannot he operated as an airport, then this agreement shall terminate. In the event that the leased premises or Superior's improve- ments or the airport facilities reasonable and necessary for Superior to conduct Superior's business are partially destroyed or damaged due to acts of God or other acts outside the control of Superior and/or City to such extent that the leased premises may not economically be used for the uses and purposes for which leased, then this agreement and lease shall he 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 tot: or partial destruction, if any applicable insurance proceeds arc 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, Superior shall cause comprehensive general insurance to be carried and maintained with respect to the hangars and improvements on the lease( 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 Superior's policies for such casualty losses to hangars and improvements on the leased premises shall he payable solely to Superior;•provided, however, that if insurance proceeds are not adequate and Superior elects not to substantially replace and/or rebuild such damaged hangars and improvements within a reasonable time, then Superior 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 Superior, multiplied by the number of years (to the nearest month) from the date of execution of this 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 Lime, 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 pro- visions of any existing or future agreement between City and the United States relativ 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 ` 1 the development of the airport. Should the effect of such agreement with the United States be to take any of the premises under this lease out from the control of City or to substantially destroy the commercial value of the leased premises, then City must provide adequate premises to Superior or this agreement shall terminate. G. TERMINATION. 1. This lease shall terminate at the end of the term set forth in Article V hereinabove, and Superior shall have no further right or interest in any of the leased premises or rights, uses or other interests •.. ..,1 4 .,,,, ao„anr and Suuerior will vacate and remove all equipment placed thereon by Superior prior to the execution of this lease, unless Superior and the City renegotiate said 'lease and enter into a mutually satisfactory lease extending the term hereof. Superior shall have one hundred twenty (120) days within which to remove Superior's equipment and personal property, and in the event Superior 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 Superior will reimburse City for its expense. 2. At the termination of this lease all improvements placed on the lease by Superior 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 City the right to terminate this lease at any time after thirty (30) days notice in writing has been given to Superior, unless within said time Superior has fully complied with the rental provisions. Default in any of the other covenants on the part of Superior shall likewise give City.the right to terminate this lease at any time • after thirty (30) days notice in writing has been given Superior, unless within said time Superior has fully corrected the condition creating the default. City will specify in such default notice the lease provision under which City claims that Superior is in default, and the acts or omissions giving rise to the claimed default. ARTICLE X TRANSFER OF LEASE The written authority of the City shall be obtained by Superior prior to any sale, reassignment, transfer or subassignment of this lease. Should Superior borrow money or otherwise finance the improvements to be constructed hereunder, and should it become necessary for any lender, financing agency or guarartor to foreclose and take over this lease because of Superior's failure to pay, said lender, financing agency or guarantor niay operate the lease subject to all of its provisions, provided all obligations of Superior are met and all payments owing be paid. ARTICLE XI AIR OPERATIONS AREA SECURITY Superior shall provide for the security of the air operations area to prevent ground entry or movement of unauthorized persons in accordance with Section 9-32 of the City Code of Corpus Christi, Texas, Page 10 of 11 and any regulations imposed upon City by the Federal Aviation Administration. Superior shall indemnify and hold harmless City, its officers and employees, from any charges, fines, or penalties that may be levied by any agency of the United States or the State of Texas by reason of Superior's failure to comply with this requirement. Physical barriers to prevent access to the air operations area must be in effect during construction upon the leased premises. This covenant is in addition to any of the above indemnification provisions. ARTICLE XII CIVIL RIGHTS In exercising any of the leased rights or privileges, Superior shall not on the grounds of race, sex, creed or national origin discriminate or permist discrimination against any person or group of persons in any manner prohibited by Part 21 of the Regulations of the Secretary of Transporation. City hereby expressly retains the right to take such action as the United States may direct to enforce this nondiscrimination covenant. EXECUTED on this ATTEST: By day of , 1981. ATTEST: CORPUS CHRISTI BANK $ TRUST COMPANY ATTEST: By CITY OP CORPUS CHRISTI By City Secretary Acting City Manager APPROVED: 9 I1e.cp, 9,, , lP j J. Bruce Aycock,, CITY Page 11 of 11 = . =.: Mr-- r.= . - - - • Th FUTURE EXPRESSWAY P/L S C I S .11,1 Ai I- L P-opc.)&ect elu;11mc Area SC& 1116 vm ik19. fl Cl" P r- Ts/ LLLI I•3 lic[ trIciL\¼. • \ • A t That the foregoing ordinance was read for thy first time and passed to its second reading on this the 9 day ofs 19 $/ , by the following vote: Luther Jones Betty N. Turner Jack K. Dumphy Bob Gulley Herbert L. Hawkins, Jr. Dr. Charles W. Kennedy Cliff Zarsky That the foregoing ordinance was read for eA�s-ecoo d time a d passed to its third reading on this the 4day of'p, 19, by the following vote: ti Luther Jones Betty N. Turner Jack K. Dumphy Bob Gulley Herbert L. Hawkins, Jr. Dr. Charles W. Kennedy Cliff Zarsky That the foregoing ordinance wa read for the thi d time and passed finally on this the meq? day of ,M��,,alp , 19 , f by the following vote: Luther Jones Betty N. Turner Jack K. Dumphy Bob Gulley Herbert L. Hawkins, Jr. Dr. Charles W. Kennedy Cliff Zarsky PASSED AND APPROVED, this the day of ATTEST: Cit Secretary APPR : / 4J: /� DAY 0 ¢� 19 A J. BRUCE%�AYCOCK, CITY ATjTOf NEY By % ,' ' i^^ -r P/ , 19 p/ MAYOR THE CITY OF CORPUS CHRISTI, TEXAS 16771 PUBLISHER'S AFFIDAVIT v.343963 CITY OF C.C: 7%/ STATE 4 TEXAS, ss: County of Nueces. Before me, the undersigned, a Notary Public, this day personally came BILIIE , who being first duly sworn, according to law, says that he is the ACCOUNT/NG—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 NOTICE OF PASSAGE OF ORDIANCE NO. 16771....... of which the annexed is a true copy, was published in on tha :8th day of DECEMBER 19..81.., and once each day thereafter for one CORPUS Cu E�..QAT�LEA.-TIMES consecutive day one • Times. $- 862.64 Subscribed and sworn to before me this 9 BILLIE .1. NENDERSDN 5th day of slgTll7c7;i t 19 82. LOIS WINK Noter"Pilic, Nueces County, Texas PASSAGE DF. -ORDINANCE Ne,= i AUTHORIZINb THE CITY- MANAGER ITYMANAGER TO EXECUTE A LEASE AGREEMENH:; WITH SUPERIOR HELI- COPTERS, INC, COV- ERING A COMMERCIAt, HANGAR LEASE PLOT AIF THE CORPUS CHRISTI IN. TERNATIONAL AIRPORT, WITH UTILITY LINES, 0 ROAD EXTENSION, RAMP AND TAXIWAY EX- PANSION TO BE COM, STRUCTED BY SUPERIOR HELICOPTERS, INC., ANE PAID FOR BY THE ClI''y OVER A PERIOD NOT TE EXCEED SIXTY 160-1 MONTHS THROUGH RENT REDUCTION AND FUE€ FLOWAGE FEE REDUC- TION, ALL AS SHOWN ANO MORE FULLY DE- SCRIBED 170 THE LEASE AGREEMENT, A SUB- STANTIAL COPY OE WHICH IS ATTACHED' HERETO AND MADE An PART HEREOF, MARKED - EXHIBIT' BE IT ORDAINED B ' HE CITY COUNCIL OiFi THE CITY OF CORP14. CHRISTI, TEXAS SECTION 1. That the -City Manager is hereby author- ized to execute a lease agreq- ment with Super,or Helico • ters, Inc , all as more full,)( described in the lease on), menti a substantial hl coy ion which a attached here hereto a made t part hereof, mark exhibit "1" Said agreement overs a commercial fierie- r, a fixed base aviaiioj, ease plot, and the re- payment through reduced rental and fuel flowage fees f construction expenses 5,- urred by Superior Helicop- ters, Inc, for extension of 6 sanitary sewer line, a water line, an asphalt road, an oar phalt ramp and a portien of A taxiway. The agreemer)f shall be subject to the follow.. Ing condition.. A Superior Helicopters,' Inc , shall pay a rental rate f seven and one(ourt8 (Mc) cent? per square 1004 per year for Inc improved, area, two and one-half (5 - ,ac) cents psr square font per year for the unimproved area, and a flowage fee of six (6c) cents per gallon of fuels purchased, except that - sold to commercial airline aircraft holding valid epee. acing contracts On the air- port, and except that lost dun to theft or leakage upon fur- nishing proof of such lose The Cdy retains the right to adjust the rates for fuel 'Ito, wage fees with such rates ps` be published by ordinance duly adopted by City Coun- cil. ' B. Superior shall immet)i- ately begin making in-" proved area rental payments. on sixteen thousand eight. hundred (16,800) square feet -1 or a hangar which is ex- pected to be built by Superior. by April 1, 198E- - HANGAR LEASE This lease is entered inter on the day and year below• stated between the City of Corpus Christi, a home rule -i city, situated In Nueces- County, Texas, hereinaf tell called City, and Superior,! Helicopter, Inc, Texas cor- poration, hereinafter rer rred to as Superior, upon ese terms, performable tet' lxa0-ua,— • • •♦ A.`14RT1CtE'f' ' DESCRIPTION OF LEASED SPACE City leases unto Superior p;n area designated for carve., - merUal hangar lasted gage .rally on the west side of Ihp terminal buddin Showa on the -31fa> d drawing marked Exhibit 'ee which is made a part hereof as -fj copied verbatim herein an specifically described as told lows. 5.1,0 !11 She ext at the f the no lor6 of the extension of the nortMa ern boundary of taxiwa "P" (perpendicular to run- way 13.31) if extended in a - northeast direction, with this - extension of the northern. boundary of taxiway PH. (parallel to runway 13-31) 14 - extended in a northwest d rection to a point for a place of begmmryg;- Thence turning left nine degrees and Continuin northwest parallel 10 the, northeast boundary of tax., iway "P:' for a distance oh 750 feet for the southwest corner; --- Thence turning right nine, ty degrees continuing north, east for 350 feet for the north- west corner; Thence turning ninety des grees continuing southeast, along a line parallel to the northeastern line of taxiway, "P" fora distance of 750 le*, for the southeast corner, Thence turning right niner ty degrees and southwest 35Q feetet 10 to 15 ih place of beginning) ARTICLE I PRIVILEGES, RIG • USES AND INTERESTS' A USE OF LEASEE PREMISES Superior shall, use the leased premises foto commercial hangar oper- ations herein defined and fon no other use without the spar cific written permission 01 - the City' (1) Housing aircraft ill. hangars and related shog and office use, (2) Engaging in any activi- ty related f0 the business ofi repairing, leasing, punt chasing, or otherwise acquir mg, selling, exchanging, dis- t or dealliing in or distribuhog• aircraft of every class and - description, including em pines, motors, andents,supplies a'- cessorie&- (3) Servicing of aircraft with fuels and lubricants (41 Operation of aerial tax., and sightseeing services and, aerial advertising, aerial, survey, aerial, photographic and mapping,' I 151 Operation of schools 0t - flying, navigation, aviatino mechanics, aerial survey, 1 aerial photography, aeria' des yng, aerial construc11 on, (e d'd Aeronautical and allf re (7) p, (7) Operation ofthe buss: ness of nonscheduled trans- portation of passengers, and, - (8) Undertaking of any-, phase of aviation activity for. profit related to or contra ting in any way to aircraft, sales, servicing and distribua tion or aerial navigation. B RIGHT TO USE AIR, FIELD. Superior shall have the right to use the public - areas and public airport t8 cillfies Including the run^ Sways, taxiways, aprons, ramps and navigational aitl and ,tacU,ties ia. =Mg 1w th others 5ie authorized, `sub act t0 ed0 in OCCO'CSOCO. [wIt(y)lle4ew?uQ, Ac+i State 01 9 gM'eCs d= State of lnxas -a- rules and regulations promulgate[,. by their authority with refer" ence to aviation and air nave gation, and in accordance{ with all reasonable and a{M, plicable rules, regulationsry ordinances and Charter of" the City. C RIGHTS ENUMER4 ATED Superior shall hauo the followingrights: 1 To selaircraft fuer lubricants and propellants - on the leased premises, o,bf any other public apron, andi within any private hangar area. City reserves the right) to lease or rent the apron tees) mediately adjacent to the control tower annex Wile(( ing, known as the transient apron, as shown on the mas4 ter plan of the Corpus Chris*, International Airport, to an operator or operators as e: separate business tar the dis� pensing of fuels, lubricant; and propellants and/or foci the operation of tiedown fa; edifies on said apron In the event that the transient ap- ron is operated as a separate business, then Superior sheµ not have the right to the use. of the tiedowns on said apra or to sell and dispense fuely lubricants or propellants on said apron_ 2 To store aircraft fuels, lubricants, and propellant) on the leased premises,. 3 To maintain and operates mobile equipment when res. soneble and necessary to till, and dispense aircraft fuels„ lubricants and propellant, on the leased premises and. within the area describeih above, with right of access tem the commercial ramp and connecting taxiways. 4. To maintam,„store and service aircraft which shall - include hangar storage oto aircraft, malor and min _ verhauling and repairing ot• aircraft, repairing, in- spection and licensing of, same, and purchase and sate of parts, equipment and ails craft accessories - 5 To purchase and sella within the leased premises, eronautl-cal charts, publics. ions, caps, sunglasses, co uters, radios, and other: viafion related he - malty sold and ditpensed by commercial fixed base hang- ar operators. -� 6, To rent, lease and char- ter aircraft and to engage in the business of teaching and/or otherwise instructing flying and aircraft mechan- ics 7. To place and erect signs and advertising material within the hangars, offices and shops on the leaSed, premises at Superior's dis- cretion; and to place and erect signs and other adver- tising material on the outside pj SuIeriar's buildings, ;Shops and offices, provided that the size and Shape of uch signs shall conform to )he general appearance of the airport premises, and be eubiect to the approval of the Airport Manager; and to place and erect signs and ad- bertising material at other ations on the airport, pro- ded that written per• mission i5 obtained from the Apirport Manager prior to the (nsfallation of any sign or ad- ertisIng material at any lo• cation outside of or off the ,leased premises and subject 'p the order of, the ABehr anager to re to 'F 'r 1 re- vel of such 1„ a,"t. ,s of f1ha110 N :-D fv7r-r-r""Kt:� g USES EXPRESSLY ARC 11 yt - iBIT ED. The to' :wirj: ac a itiv,ties and uses are ex• pressly excluded from this lease and Superior is prohib- • ifed from any such use or ac- ,fivity except as noted: `�.1..Ground Transportation `Mr hire. Superior may pro- vide ground transportation for its employees and &ela- tion customers as a service except that said service may not be offered to the general public on commercial basis. 2. Western Union Superior ay use the wires, lines and rvices of Western Union r its own purposes In con- nection with the estab- lishment of a cammu• nications system and weather system or for any other purpose so long as Su- perior does not engage comm mercially in the taking or ,sending of telegrams, money 46rders, etc { 3. Automobile Rental Ser- vice 4. News and sundry sells except for those that may b Items as, mentioned here- nbove , 5. Advertising concessions may b except tar those that may be conducted within Superior's hangars, oft ices and shops Barber, valet and per - IotaI services. 7, The sale of food and/or drink except from dis- swithinetthe ha gears,)ocated offices and'or shops. However, no cafe or cafeteria type of -ser- vice shall be operated 8 The sale of flight andior rip insurance. 9. Commercially engaging in the business of making reservations for hotels, mo- tels and other lodging. ARTICLE III CONSTRUCTION OF HANGARS AND IMPROVEMENTS Prior to construction of any hangar or improve- ments on the leased prem- ises, Superior will submit plans and specifications to the City for approval and re- view with respect to the gen- eral appearance, safety, type of Construction pro- posed and life and value 1. Superior agrees to con- ruct an asphalt ramp and taxiway approximately 200 ,ft. by 150 ft., a 25 ft wide as. phalt roadway extension, 8" Water and sanitary sewer Cline extensions, all at an esti• mated cost of 8164,000. Con- struction of the ramp pand taxiway will at such grade nil of such material so as to e in keeping and in accord, ante with plans and speciff- cations which are subject to the approval of the City. Said construction shall corn/ mance within 30 days from the date of this lease and pro- ceed with dug diligence, all at the expense of Superior. Superior shall be entitled 10 mbursement for the actu• i. l amount of said construc- tion cost by crediting the rental and flowage fees which are otherwise payable under the terms of this as. signment until the said con- struction costs (including In- terest limited however, to actual interest paid and Pur- er limited to interest at ten ercent per annum and fur- ther limited to interest on ;construction costs reduced rby monthly credits which •would otherwise be payable 'except for the right of re- amburserrent contained mi e.,5 paragraph) shall havalyy.e icer re mturse0 to Supe �,4 ''- any rope ty. taxesand per• ie' N', � rami imp 40 4 taxes InKtheed, 17i• 0s shah bo }� mprtime iementstl placed upon Ilhate to the sprevisioons of nY the leased premises. existing or future agreement between City and the United States relative to the oper- Airp or r the t executionf of Airport, be re - which has been or may quired as a o itoli=ltfunds D. Ali of the terms, cov- enants, and agreements herein contained shall be binding upon and shall Inure to the benefit of the heirs, successors and assigns of 5U- perior and City.. E. DESTRUCTION. In the event that Superiors Im- provements or the airport Is damaged or destroyed by, acts of God or through ane er reason outs outor side any 6f Superior and City to suction. nota be that the ope�afe'B as oan air- port, then `this agreement shall termist - "--- ' In the event that the leased premises or Superior's im- provements or the airport fa - citifies reasonable and ned essary for -Superior- to conduct Superior's business are duelto acts ofd or God or other acts outside the con- trol of Superior andtor City to such extent that the leased premises may not economic- ally be used for the uses and purpose. for which leased, thelease shall be suspended dur- ing reement the period of such partial damage or destruction and shall not begin or resume un- til e has been re. pai ed den the case of such anyor partial destruction, insrace pro applicable proceeds are adequate tore - construct the damaged (m- toen such or facilities, then such improvements or e rebuilt facilities reasonable period of time ed At its owthe n applicable se,insun Supe- rior shall cause comprehen- sive general'insurance to be carried and maintained with respect to the hangars and ents on the leased premises with coverage con- sistent with industry prac- tice. Evidence of such ance shall) be presented insur- ance the execu- tion thishleasetime 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 policciiessforrosuch ucasualty - losses to hangars and im- provements on the. leased premises shall be payable to solely to Superior; provided, however, that not adequate and Superior elect not to sub- stantially ub stantially replace and/or re- build such damaged hangars resso apblevtime ts thenthin a 5upe- rior an amountlfrom the prl remit to oceeds of such policies equal to three percent (3%) of the total in payable 10 Superior, multiplied by the number. of years (to the nearest month) from the Age. of e0ecuhon of olhl% Lease agreement 001 ,cent (100%7�e Ito then •pill 0O party fail rebuiilldasuch� rn- pa.r or fatigues pr(010 0 is or ithIn a reasonable prNnd of Ino* then t, hl ii df ty..by-writtet. ro- ther-• ce to ha expenditure for the development of the airport. Should the effect of such agreement with the United States es to take any lease Outrf romathecontrol of de - City othe commercial substantially of the then C the leased premises, City mese provideadequate premises to Superior o this agreement shall terminate. G. TERMINATION. 1. This lease shall termi- nate at the end of the term set forth in Article V and Superior shall 000e e, g have st in any 01 right leased premises or rights, uses or Other interests contained 1 this agreement, and Superi- or will Vacate and remove all equipment placed the b Supeoior P unless Su - pen of this lease, Su- perior and the Qty re- negotiate said laaye and enter inlease extel0Yn9athe factory term hereof. Superior seU .1have one 120) days hwithin whchh ro remove SUPaonal property, meat and pe and in the event Superior fails work Baso an tabandhe onmenit and title shall pass to City, or City may remove said egOiP- ment and personal property and Superior Will imburse Cif4 for its exile this lease alJtlmmprovements rior igcd iudlnO n the fez exiease sting fang ars 5010 revert to Cityin ac- cordance with the City Charter, Article VIII, Sec- tion 2, As amended, H. CANCELLATION. Default in payment of any of the rentals shall give City the right to terminate this lease at any time after thirty (30) days notice In writing has been given to Superior, un- less within said time Superb or has fully complied with the rental provisions Default in any of the other covenants on the part of 5u- periive Clty the r freight ll itoa term kwise nate this lease at any time after thirty (30) days notice in writing has been given Supe- rior, unless within said rime Superior has fully corrected the condition creating the default- City will specify in such default notice the lease provision under which City claims that Superior Is i0 default, rise a acts otthe sons9)v claimed default. ARTICLE X TRANSFERLEF SE The written authority of the City shall be obtained by Superior prior to any sale, reassignment, transfer or ubassignment of this lease. 5 repr�vements 10 be qon tructed hereunder, and hould it become 4ecessary for any lender, financing agency or guarantor to fore- close and take over this lease because of Superior's failure to pay, said lender, financing agency or guarantor may op- erate ate the lease Subject to all of its provisions, provided all obligations of Superior are met and all payments owing be paid ARTICLE XI AIR OPERATIONS AREA SECURITY Superior shall provide for the security of the air oper- ations area to prevent ground entry or movement of unauthorized persona in accordance with Section 9-32 of the City Code of Corpus Christi, Texas, and any regu- lations Imposed upon City by Inc Federal Aviation Admin - Oration. Superior shall In- o.e..ir., end hold harmless G,Cily, its officers and employ- ees, from any charges, fines, or penalties That may be ley. }ed by any agellcy of Inc United States or the State of frexas by reason of Superi- or's failure to comply with his requirement. Physical barriers 40 pre- �ent access to the ale oper- at(ons area must be in effect tluring construction upon the leased premises. This cov- enant is in addition to any of the above indemnif icatlon provisions. ARTICLE XII CIVIL RIGHTS In exercising any of the leased rights or privileges, Superior shall not on the grounds of race, sext`cPeed, or national origin discrimi- nate or permist discrimina- tion against any person or group of persons in any man- ner prohibited by Part 21 of the Regulations of the Secre- tary of Transportation, City (hereby expressly retairiS,the right to take such action as the United States may direct to enforce this "hgn- discrimination covenant EXECUTED on this -- day of --, 1981, ATTEST: ATTEST: ('By," CORPUS CHRISTI BANK &TRUST COMPANY 13y -- ATTEST: 1 City Secretary CITY OF CORPUS CHRISTI • By -- Acting City Manager APPROVED- 9 December, 1991 J. Bruce Aycock, CITY ATTORNEY ' By -s -J. Bruce Aycock)~ - WAS PASSED AND AP- PROVED BY THE CITY 'COUNCIL ON THE 23rd day Of December, 1981, previous- ly approved on Ise and 2nd readings on November -25, 1991 and December %ri}fal, respectively. Witness my hand ihlO idth day of December, 1981. • - •s -Bill G.Read .mss...•. Secretary pould_S aio�- otr- - a Iti�S r tory o re 1.4.4. d'„ _ a.Y, ..w _,,, - ., ..^ _ T •e omi •r a c ���'''SSSTd-•r0/1750rienitirk shall bathe ariSOfnebcal av i 1 extend be.ydnd 60 month-lerage as of July, 1960 of Ih 5 ram the date hereof:Atte 6ilndices (A7 of the United ch-re,mbursement or said' ((States Bureau of Labor Sta-) construction costs or the ex-' ftistics for hourly wage rates of all workers in manufaci luring and (B) of all cam1 modify wholesale prices, and the numerator of which shalt be the arithemetical averag of said indices (A) and (B)l) for the last available twelve (12) monthly indices immeJ Idiately preceding the re `quest for ad ustment. T Should either of said in ice change substantially ,as toform and basis of data pr manner of publication, the above adjustment provision inay be amended in writing. On the base date, July, 0, the United States Bu- reau of Labor Statistics n- 1 dex for hourly wage rates for all manufacturing employ, ees was 52 26 per hour and the commodity wholesale sale price index was 100 8. Such formula must result in a change of at least c per unit or no adjustment shall be made, and all adjustment shall be made to the nearest Vac. • - City retains the right to act lust the rates for fuel flu wage fees set forth herein, such rates to be published b ordinance dury adopted by the City Council. City will pit rui this same clause in any re newel; amendntent, or ex tension of any othegr existi fixed basedoperattr leasee well as any other new faxed base operator lease Effective as of the date 0 'Int, of this agree ment, the rents based on th foregoing formula are as fol lows The Improved Area seven and one-fourth (7'/4c) cents per square foot pet year: Unimproved area, two and one-half (2-1/2c) cents per square foot per year Flowage fee, six (6c) cent per gallon Ground rentals as at out here and above shall, beecomputed on a monthly' basis and shall be come due and payable on the first day of each calendar month throughout the term of this O th f' f d of }he neetion date ohereof,pwlhs from hiche0er fust occurs, no further re- borsement shall be due ,uperior. The City will marry. fain the ramp road, & 01111. ,ties constructed by Superior. 2. Superior will construct 1 its own -expense b hangar approximately 120 by 1401t, parking area for vehicles, nd provide any necessary idewalks and fences, all at uperior's own expense. 1 3. A setback area of -50 feet ide will- kid malntamed on each side of the area to be eased (on both sides n length) where no )king (005,forrcon- ments, pa Siructton of any kind will be permitted. — ARTICLE IV ACCEPTANCE REM SES OF Superior acknowledges that the premises have been nspected and accepts the )eased premises m (5 pre• bent physical condition and WIII pay the total cost of de- tieloping said property. ARTICLE V TERM This lease shall De for a term of thirty (30) years, (provided Superior has not �tetms conditlted ions and provi inions hereof. This term shall commence upon completion bf construction pf the hangar Land all requisite conditions for compliance with Article )Vlll, Section 2(c) of the City Charter. ARTICLERENT VI Superibr will pay City a base rental fixed as of July, 1960 and supplement as fol- lows: 1 Three tents (3c) per square foot per year for the area covered by hangars, shops, offices and/or other improvements. 2. One cent (lc) per square foot per year for the area tback within the leased premises linesewhere but ledscould legally be constructed. J. Thirty-three antl one- third (33-' a%) percent of the gross income from parking and/or ttedown facilities lo- cated on any ramp That may be constructed in the ramp area, shown an Exhibit "A"e 4. Two (2c) cents per gal- tlon of aso Ion for each gra line andibr other propel ants and fuels purchased by Supe- rior, except 05 to gasoline sold' to commercial airline aircraft holding valid oper- ir- port9 Superior iwillllnnot the eare- qulred to pay for loss of such fuels due -to theft or leakage, upon furnishing the City with sus. Superior ficient f will dot nbe charged for storage tanks within leased premises, ex- cept ground rental, and will submit storage tank plans 10 the City for approval prior 10 installation. Fuel storage Sites on property outside Inc leased premises will require P Separate lease 6- At the end of each thre year period after the execu- tion of this lease, either City or Superior may request an rental ales;-andthe nt in the grown• eat a5 above sat out, w ustment shall. be Som- tad -ay multiplying such ry tenAlt.a.1 lease. n e its ay next calendar month atter, the rentals begin under this lease, Superior shall prepare a report to writing on a form' approved by Cly showing the tote I number of gallons of gasoline fuels and/or other propellant purchased by 50- perior and the total gross re- ceipts on the above -men tinned apron during the lireceding calendar month and shall submit sald report to City along•with the rental to be paid thereunder prior to the tenth day of said eaten; dar month. Superior shall submit a like report and pay' mens therefor for each suc- ceeding month during the, term of this lease. Superiors { will keep full and accurate' ! records of ,all traosactions� - purchases, sales, d n come, both from cash sale and credit sales, that in any way concern rental to City, and will holdall books an records covering such sale open to inspection by City a, all reasonable times. 7. City appoints its airpar manager as its agent to re ceive all rentals and reports under this lease and Superior. will submit said reports and Managers to l may ideslg- nate others as agents to in- spect Superior's books'and records, such Imogene to 'be performed 61 reason le !Y a di....:., L1Ks. '7t[add Itp)rrfd"ef}•vt emedies` rihtcfr City m hall, iFed,;'�Wwlb�'f',vTF9&rCi ,I yof. Y Pray,de-•garbapa set- said vicetor a reasonable fee con -1 9_ sistent with charges made to ys'f }commercial establishments her iy ave' 10' enforceyhe obit tions of Syperior, City s have a lien on all proper} Superior placed on premises far all move runts, shares of gross re- ceipts and outer obligations of Superior. 9. By rm "Transient is 050 Apron" is meant that apron east of the control tower building approximately two hundred eighty (280) feet In width extending from tax- iway "N" southward lo a line `Mich Is the eastern eaten- -skin of -the south line of the commercial apron -running south at•the tesmtnal build- rna and control tower build - Ing, 50(6 transient apron; having a length north and south of approximately sev- " en hundred fifty (750) feet. The term of "public app" ron" shall include, n adds- 'Mon to the transient apron above described, the follow - 'Mg area: All of that area Shown on Exhibit A as "commercial apron" and being an area ap- proximately 306 feet in width extending north and south and extedning east and west a distance of approximately 1,050 feet, all of which area lies as shown on Exhibit A south of the airport terminal building and airport control tower building. 10. City reserves the right to change the base date of July, 196a referred to above In the event that the City makes the same change In any other existing or new fixed base operator lease. ARTICLE VII UNDOFERTCITYAKINGS City covenants as follows A To operate Corpus Christi International Airport as a public airport during the term of this lease sub)ertto and consistent with and pur- suant to the assurances giv- en by the City to the United States Government under the Federal Airport Act, and to Superior by this lease B. To make water and wastewater service avail- able upon the same basis a5 applies to residents within the City of Corpus Christi. Superior shall pay all harges ,for water, waste- water, electricity and other public utilities supplied to Superior and/or Superior's premises during The term of this lease as Such charges become due and payable ARTICLE VIII UNDERTAKINGS' OF SUPERIOR Superior further covenants as follows. • A. At its own expense, to Improve the leased premises by the construction of hang- ars, offices, shops and/or other improvements, as hereinabove mentioned, and to maintain said Improve- ments and leased premises in a presentable condition consistent with 'good busi- ness 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 re- fuse, and not to deposit the same or allow the same to accumulate, except tempo- rarily in connection with col - 'dried for'removal,-on-any 000 of Ole leased premises or other property located ,,'R i1Mr63aa.atcaEbkg6M,u*Lo• 1 of a similar nature To make adequate f wlubricants for and dispose of waste oils and lubricants oft the airport property and nev- er put or allow to be put any such waste oils and lubri- cants into the airport waste- water system. C. To supply good, prompt and efficient service ode. mate to meet all the de- mands for such service at; the airport on a fair, equal' and nondiscriminatory basist to all users thereof, and to'. charge a fair, reasonable and nondiscriminatory price for each unit of sale or ser- vice, provided provided that Superiorj or its tenants and sublessees Will be allowed to make rea- sonable and non- discriminatory discounts, re- bates or other similar type of price reductions to volume 0 purchasers Nothing herein 1contained is intended to nor shall be construed as vesting in City the power or author- ity to regulate Superior's charges for student training, aircraft rental, aircraft Stor- age and aircraft charter ser- vice and services specifical- ly related to such service ARTICLE IX GENERAL PROVISIONS A. INDEMNIFICATION Superior s and shall be I deemed to bean independent contractor and operator re- sponsible to alt parties for Its respective acts or omissions and those of its agents, ser- vants, employees, invitees, tenants and sublessees, and City shall in no way be re. sponsible )heretor. 10 the use of the airport and in the maintenance, erection or construction of any improve- ments thereon, and the ex- ercise and enjoyment of the rights herein granted, Supe - nor will Indemnify and save harmless City from any and all losses or claims for dam- ages that may proximately result to City from any negli- gence on the part of Superi- or, Superior's agents, ser- vants, employees, construction contractors and invitees, and for those of its tenants and sublessees Su- perior will carry public lia- bility Insurance in the min- imum sum of 5500,000 single limit. All insurance shall be carried in a responsible com- pany and shall name City ,nays assuredSuch policyas shall, in add.ition, be en- dorsed to provide for cross - liability between the as- sureds. 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 00ent of cancellation or material change in the terms thereof 0 NOTICES, Notices to City shalt he deemed suf- ficient if in writing and mail - es, postage prepaid, ad- dressed 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 Superior shall be deemanded sufficient mailed,post if in writing • age prepaid, addressed to Superior at 900 N,E L �.. 410, Sade 600, San Antonio r • PUBLISHER'S AFFIDAVIT v. 343956 CITY OF C.C. /e77/ STATE OF TEXAS, La, County of Nueces. J Before me, the undersigned, a Notary Public, this day personally came BTT.T,TE..,L....HENDERSON , 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 NOTICE OF PASSAGE OF ORDINANCE ON SECOND READING...... __ { CORPUS CHRISTI CALLER -TIMES of which the annexed is a true copy, was published in on the. 21st day of DECENp,ER 19 .81., and once each consecutive da,Y one Times. 39.36 day thereafter for BILLIE J. HENDERSON .732 Subscribed and sworn to before me this 28th day of DECEMBER one .L4IS..WIIIN. �c� Notary Public, ltlueces County, Texas 9+ .x:�'_IM?µa frvYLA",p*`w+"fm 19 .8.1 NoricE•oF 7, , • PASSAGE OF • ORDINANCE ON SECOND READING AUTHORIZIKS THE CIT MANAGER TO EXECUTE A LEASE AGREEMENT WITH SUPERIOR HELI- COPTERS , INC. COV•1 ERING A COMMERCIAL( HANGAR LEASE PLOT AT THE CORPUS CHRISTI IN-1TERNATIONAL AIRPORT,. WITH UTILITY LINES, A ROAD EXTENSION, RAMP AND TAXIWAY EX- PANSION TO BE CON- STRUCTED BY SUPERIOR HELICOPTERS, INC., AND PAID FOR BY THE CITY OVER A PERIOD NOT TO EXCEED SIXTY (60) MONTHS THROUGH RENT REDUCTION AND FUEL FLOWAGE FEE REDUC- TION, ALL AS SHOWN AND MORE FULLY DE- SCRIBED IN THE LEASE AGREEMENT, A SUB -1 STANTIAL COPY OF WHICH IS ATTACHED HERETO AND MADE A PART HEREOF, MARKED EXHIBIT "1. WAS PASSED ON SEC- OND READING by the City Councilof r telroC.1M 0)in OleEor1p6u) iC:•labyrisottibecember 1961,Pre91• ously aPPr00 on first read; Mg on Deceibber 9,1981.T full text of said orsluril,c,etti‘se -available to t115 Office of thP.c /LP Secretary' -.5111 G. Read •• City Secretor - )) • • • 9CoTpus Christi, x.ro'0'moi9 ot9OPM19","9".9•2PliBwrigiVirejr.""j4:99:199,,I.V10f3trrie Ant STATE OF TEXAS, County of Nueces. }ss: Before Jme, the undersigned, a Notary Public, this day personally came BILLIE F....IENDER.SDN. , who being first duly sworn, according to law, says that he is the ......ACCDIJNTINC..Cl2gK 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 • NOTICE OF PASSAGE OF ORDINANCE OF FIRST READING..... PUBLISHER'S AFFIDAVIT v. 328617 CITY OF C.C. of which the annexed is a true copy, was published in GQ13111.02.1S2.1_CAT.r on the 14th day of DECEMBER DECE19 St and once each......._.._..d c thereafter for...._...on_��_..�. _._._....._. e day consecutive one a-- _ Times. 39.36 Subscribed and sworn to before me this BILLIE J. HENDERSO 17thday of 19 81__ ___ LOIS WINN agea) Notary Pubhc, Nueces County, exas 1 PASSAGE OF F RT READING AUTHORI{INGS•THE' (CITY MANAGaR TO EXE- CUTE A LEASE AQREE- MENT WITH, SUP RIOR ERING AT COMMERCIAL AL HANGAR LEASE PLOT AT THE CORPUS CHRISTI IN- TERNATIONAL AIRPORT, WITH UTILITY LINES, A ROAD EXTENSION, RAMP PANSIONXTO BE CON• STRUCTED BY SUPERIOR HELICOPTERS, INC., AND PAID FOR BY THE CITY OVER ,A PERIOD NOT TO EXCEED MONTHSTHROUGH RENT REDUCTION AND FUEL, FLOWAGE FEE REDUC- TION, ALL AS SHOWN AND MORE FULLY DE- SCRIBED IN THE LEASE AGREEMENT, OF T, A STANT5L ATTTACHED HERETO AND MADE A PART HEREOF, MARKED EXHIBIT '1", AND DE- CLARING AN EMERGEN• CY. T READIPASSEDy Ibe ONi yCoun- cil of the City of Corpus Christi, Texas on th:) 91h day of Decembel 1981. , The full text of nce is available to the public c In the OHice of the CdyB.S' Ge Read x City Secretary 6ir Corpus Christi, • Texas