HomeMy WebLinkAbout17787 ORD - 08/17/1983AN ORDINANCE
AUTHORIZING THE EXECUTION OF AN AMENDMENT TO THE LEASE
AGREEMENT WITH UNICORN VENTURES AT THE CORPUS CHRISTI
INTERNATIONAL AIRPORT FOR THE PLACEMENT OF VIDEO GAMES
AND ESTABLISHING LEASE RENTAL RATES.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
TEXAS:
SECTION 1. That the City Manager or his designee is hereby
authorized to execute an amendment to the lease agreement with Unicorn
Ventures at the Corpus Christi International Airport for the placement of
video games and establishing lease rental rates, which amendment shall be
substituted for the previous lease in its entirety, all as more fully set
forth in the lease agreement, a substantial copy of which is attached hereto
and made a part hereof, marked Exhibit "A".
17787
MICROFILMED
sEp 2,81984
CONCESSION AGREEMENT
THIS CONCESSION AGREEMENT entered into by and between the CITY OF
CORPUS CHRISTI, TEXAS, a municipal corporation (hereinafter referred to as
"City"), and ROBERT S. COBB, dba UNICORN VENTURES OF HOUSTCN, TEXAS
(hereinafter referred to as "Concessionaire");
WITNESSETH:
WHEREAS, the City owns and operates the Corpus Christi International
Airport located in Corpus Christi, .Nueces County, Texas (hereinafter
referred to as "Airport");
WHEREAS, Concessionaire desires to enter into a Concession Agreement
with the City for the r,urpose of placing a variety of mutually acceptable
entertainment equipment at said Airport; and
WHEREAS, the City and Concessionaire have previously entered into a
"Contract for Lease of Equipment" on September 7, 1981, and mutually agree
to wholly amend and replace the terms of said contract by the adoption of
the terms and provisions stated herein;
NOW, THEREFORE, in consideration of the foregoing and of the mutual
covenants hereinafter contained, the parties agree for themselves, their
successors, legal representatives and assignees, as follows:
1. CONCESSION SPACE. The City hereby provides to Concessionaire,
for the period and subject to the terms and conditions hereinafter stated,
a Concession Space located in the alcove between the Hidden Harbor Lounge
entrance and the east wall of the American Airlines ticket counter in the
main lobby of the terminal building of said Airport, the same space which
is depicted and shown on the floor plan which is attached to this Agreement
and made a part hereof as Exhibit "A".
2. CONCESSION TERM. This Agreement and all rights herein granted to
Concessionaire shall become effective upon the execution hereof and shall
extend for the same duration of the aforementioned contract until
September 6, 1986, subject, however, to earlier termination as herein
provided.
3. FEES TO CITY. Concessionaire agrees to pay to the City monthly
during each year of the term of this Agreement the following amounts:
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E b. "19'
Forty percent (40%) of the first $1,000.00 of the Gross Revenues (as
hereinafter defined) each month; and
Forty-five percent (45%) of all the Gross Revenues in excess of
$1,000.00 each month.
Provided that the first money taken from each piece of equipment or
machine in each calendar year shall be paid to Concessionaire to reimburse
the payment of that year's annual occupation tax levied by the state, the
City and the county.
"Gross Revenues", as used herein, shall mean all moneys earned or
received by Concessionaire from its operations in the Concession Space at
the Airport after reimbursement for the payment of occupation taxes, but
shall not include sums recovered (from insurance or otherwise) for damage
to property of Concessionaire. Credit risks shall be borne solely by the
Concessionaire, and for purposes of payment all income shall be treated in
Gross Revenues whether collected or accrued, including any sums or receipts
which may have been diverted by employees of Concessionaire or otherwise.
Throughout the concession term, Concessionaire agrees to submit to the
City, not later than the 25th day of each month, a full report, certified
to be correct by an officer of the Concessionaire, of all Gross Revenues
for the preceding month, together with a check for the percentage of Gross
Revenues for the month payable under this Agreement.
4. RESPONSIBILITIES OF CONCESSIONAIRE. The Concessionaire agrees to
provide and maintain in the Concession Space at the Airport throughout the
term of this Agreement a variety of mutually acceptable entertainment
equipment, including, but not limited to, at least four (4) electronic
amusement devices. Such equipment and devices shall be used only within
the Concession Space and shall remain available for use twenty-four (24)
hours each day, seven (7) days per week. At all times through the duration
of this Agreement, title to said equipment and devices shall remain with
Concessionaire.
5. ACCESS TO PREMISES. The right of ingress and egress to and from
the Concession Space is granted Concessionaire, its employees, agents,
guests, patrons, shippers and consignees over designated roadways, drives
and walkways of the Airport without charge, except as herein otherwise
provided; however, nothing herein contained shall be deemed to limited the
City's right to impose charges upon the parking of vehicles.
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6. CONSTRUCTION. Concessionaire, at its own expense, may construct
or install in or on any of the Concession Space partitions or other
improvements necessary for use in connection with the concession operations
described in this Agreement. The plans and specifications for any such
construction, including the proposed costs associated therewith, must be
approved by the City's Director of Aviation prior to the construction or
installation thereof.
7. MAINTENANCE. The Concessionaire shall keep all equipment and
entertainment devices placed in the Concession Space pursuant to this
Agreement in good and sufficient working condition, including all necessary
lighting and window -treatments in the surrounding area and any repairs and
adjustments required to keep such equipment and devices operating on a
profitable basis. In the event any of such equipment or devices fails to
operate or cannot be operated in a good and sufficient manner, the City may
give notice to Concessionaire of such malfunction or deficiency and
Concessionaire shall proceed to perform all necessary repairs or
adjustments to restore such equipment or devices to acceptable operating
condition within a reasonable time.
8. CITY'S RIGHT OF CANCELLATION FOR CAUSE. The City has the right
to terminate this Agreement in its entirety upon the happening of any of
the following events:
(1) Immediately upon the occurrence of any act which operates to
deprive the Concessionaire of the rights, powers, licenses,
permits and authorizations necessary for the proper and
lawful conduct and operation of the services authorized
herein.
(2) Immediately upon the making by the Concessionaire of an
assignment for the benefit of creditors, which event shall
constitute a breach of this Agreement, and thereupon this
Agreement shall become null and void and no benefits
thereunder shall pass to any assignee or transferee thereof.
(3) Immediately upon the filing by or against the Concessionaire
of a petition in bankruptcy, which event shall constitute a
breach of this Agreement, and thereupon this Agreement shall
become null and void and no benefits thereunder shall pass
to any trustee, assignee or transferee thereof.
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(4) Upon seven (7) days' written notice on the non-payment of
fees due to the City in the event such non-payment has
continued for a period of ten (10) days following the date
such payment was due.
(5) Upon thirty (30) days' written notice on the failure by the
Concessionaire to perform, keep and observe any other of the
terms, covenants and conditions of this Agreement, excepting
those specifically listed above in this section, required on
the part of the Concessionaire to be performed, kept or
observed, in the event such failure has not been cured
within fifteen (15) days following the date of written
notice.
All agreements herein made and obligations assumed are to be construed
also as conditions and are made upon the express condition that if
Concessionaire should fail to pay when due any one of the aforesaid
installments of concession fees, or should fail to perform or observe any
of the agreements or obligations herein made or assumed by said
Concessionaire, then and thenceforth, in any of said events, this Agreement
may be forfeited and thereby become null and void at the option of the
City, and the City may immediately, or at any time after the breach of any
of said covenants, re-enter said Concession Space, or any part thereof in
the name of the whole, and repossess and have the same as the City's former
estate and remove therefrom all goods and equipment not thereto properly
belonging, and expel said Concessionaire and all other persons who may be
in possession of said Concession Space without further demand or notice,
except as provided above.
The right in the City to terminate this Agreement as herein set forth
is in addition to and not in exhaustion of such other rights that the City
has or causes of action that may accrue to the City because of this
Agreement, and the exercise or pursuit by the City of any of the rights or
causes of action accruing hereunder shall not be an exhaustion of such
other rights or causes of action that the City might otherwise have.
9. SECURITY. The City, as a party hereto, shall not be obligated to
provide any police, watchmen or fire protection, and neither the City nor
any of its agents, or officers or employees shall be liable or responsible
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to the Concessionaire for any damages to it or its property by reason of
the lack of any such facilities or service.
10. CITY RIGHTS AND RESPONSIBILITIES. The City may refuse to allow
the placement in the Concession Space of any particular equipment or
entertainment device it deems objectionable, and it may similarly order the
removal of any particular equipment or entertainment device from the
Concession Space and Concessionaire agrees to remove same promptly at its
own cost.
The City shall provide electrical service to the equipment and devices
placed in the Concession Space and shall also provide janitorial services
for for the Concession Space.
11. RULES AND REGULATIONS. City and Concessionaire agree to abide by
all rules and regulations which may now or hereafter be promulgated or
adopted by the Texas Amusement Machine Commission or any other agency of
the State or federal government or by the City relative to the regulation
of the affairs of Concessionaire and other tenants or concessionaires at
the Airport.
12. SIGNS. Concessionaire shall not erect or cause to be erected any
signs at the Airport, including the interior and exterior of the Concession
Space, in view of the public without having secured prior written approval
of the City's Director of Aviation.
13. AVAILABILITY OF RECORDS AND AUDIT REPORT. The Concessionaire
agrees to make available to the City or its authorized representatives at
any time, from Monday through Friday inclusive, between the hours of 9:00
a.m. and 5:00 p.m., all records, books or pertinent information as may be
required for audit purposes.
Within 120 days following the end of each year of this Agreement,
Concessionaire shall provide the City with a statement of Gross Revenues
for the preceding year for the Concessionaire's operation at the Airport.
14. INDEMNIFICATION AND INSURANCE. Concessionaire agrees to fully
indemnify and forever save and hold harmless, the City, its officers,
agents and employees, from and against any and all claims, actions,
lawsuits, demands and liabilities, and all expenses incident to the
investigation and defense thereof, based upon or arising out of damages,
injuries or death to any persons or their property, caused by or alleged to
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have been caused by the default or negligence or other activities of
Concessionaire, its agents or employees, under this Agreement.
Concessionaire shall procure and keep in force at all times during the
term of this Agreement full liability and property damage insurance
coverage in a company or companies satisfactory to the City, protecting the
City against any liability or loss or claim by reason of any alleged
negligent or wrongful act or conduct of Concessionaire on the Concession
Space or any part or appurtenance of the Airport, or in connection with any
activity related to the Airport, in the amount of 5300,000/$300,000/
$50,000, which insurance coverage shall include the City as additional
named insured. A certificate of insurance naming the City as additional
insured shall be furnished the City in duplicate and shall not be cancel-
lable except upon notice in writing to the City by certified mail ten (10)
days prior to the effective date of cancellation.
15. ENJOYMENT OF PRIVILEGES. The City agrees that, on payment of the
fees and performance of the, covenants and agreements on the part of
Concessionaire to be performed hereunder, Concessionaire shall peaceably
have and enjoy the Concession Space and privileges bf said Airport granted
herein. Concessionaire shall not willfully permit the Concession Space to
be used for any unlawful purpose or purposes that will injure the
reputation of the Airport.
16. SURRENDER OF PRIVILEGES. Upon the expiration of this Agreement,
Concessionaire's right to use the Concession Space and enjoy the privileges
herein provided shall cease and Concessionaire shall forthwith upon such
expiration or termination surrender the same. Concessionaire covenants
that at the expiration of the term herein provided the Concession Space
will be yielded to the City in as good condition as when the same were
entered upon by the Concessionaire, fire, accident or the public enemy and
reasonable wear excepted.
17. CITY ENTRY TO CONCESSION SPACE. The City or its authorized
representatives may enter upon the Concession Space at any reasonable time
for any purpose necessary, incidental to or connected with the performance
of its obligations hereunder or in the exercise of its governmental
functions. The City in no way intends to bind itself with respect to its
governmental functions, nor does it bargain or agree to convey or transfer
its police powers or other such powers or functions hereunder.
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18. ASSIGNMENT. Concessionaire shall not at any time assign this
Agreement or operations hereunder, or any part thereof, without having
first secured prior written approval of the City.
19. OFFICIAL NOTICE. Notices to the City provided for herein shall
be sufficient if sent by certified mail, postage prepaid, addressed to the
City Manager, City of Corpus Christi, P. 0. Box 9277, Corpus Christi, Texas
78469, and notices to Concessionaire if sent by certified mail, postage
prepaid, addressed to Robert S. Cobb, P. 0. Box 570005, Houston, Texas
77257, or to such other respective addresses as the parties may designate
to each other in writing from time to time.
20. RIGHT OF FIRST REFUSAL. In the event the City determines that
additional amusement equipment similar to the equipment or devices
described herein can be acquired for use at the Airport for additional
financial gain, the City grants to the Concessionaire the first right of
refusal to furnish and develop such additional amusement equipment under
such terms and conditions as may be obtained by the City for such a
concession at that time.
IN WITNESS WHEREOF this Agreement is executed in duplicate originals,
both of equal force and effect, as of this _ day of
1983.
ATTEST: CITY OF CORPUS CHRISTI, TEXAS
6111 G. Read, City Secretary
APPROVED:
This day of June, 1983:
J. Bruce Aycock, City Attorney
By
Assistant City Attorney
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By
By
Edward A. Martin, City Manager
Assistant City Manager
CONCESSIONAIRE
Robert S. Cobb
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CITY OF CORPUS CHRISTI
DISCLOSURE -OF INTERESTS
City of Corpus Christi Ordinance 17112, as amended, requires all persons or firms seeking to do business with the City
to provide the following information. Every question must be answered. If the question is not applicable, answer with
"NA." Corporations whose shores are publicly traded and listed on notionol or regionol stock exchanges or over-the-
counter markets may hie o current Securities and Exchange Commission Form 10-K with the City in lieu of onswering
the questions below. See reserve side for definitions.
FIRM NAME:
//fi�b/%ie/[act2F/ / yy-U2c i DF 1rOaS iO�t
STREET. ?c 30 )c S 7 0 CP S CITY•
FIRM is• 1. Corporation ( )
4. Associotion ( )
c7 US tU.ti( t )C. 71P / % 2 C 7
2. Partnership ( ) 3. Sole wn r (4<-)
5. Other ( ) (2.iiaet S. ('-'61-1 3 a9f$�ta Vt4i eore
DISCLOSURE QUESTIONS
If odditionol space is necessary, please use the reverse side of this page or attach separate sheet.
1. State the names of each "employee" of the City of Corpus Christi having on "ownership interest" constituting 3% or
more of the ownership in the above named 'firm."
Name Job Title and City Deportment (if known)
1YnN,
2. State the nomes of each "official" of the City of Corpus Christi having on "ownership interest' constituting 3% or
more of the ownership in the above named "firm".
Name /� Title
/F% vna�
3. State the nomes of each "board member" of the City of Corpus Christi having an "ownership interest" constituting
3;e or more of the ownership in the above named "firm."
Nome
Nr9NFL"
Board, Commission, or Committee
CERTIFICATE
I certify that all information provided is true and correct as of the date of this statement, that I have not knowingly
withheld disclosure of any information requested. and that supplemental statements will be promptly submitted to the
City of Corpus Christi. Texas as changes occur.
Certifying Person: R.0 FS cc2T t"l9 Fi r5 Title. 7W NS FZ
.y
Signature of Certifying Person
^ D-lW pale / /k JcSt'
That the foregoing ordinancivars read for first ime and p sed to its
second reading on this the Cf. day of , 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 waaread for second ime and p ed to its
third reading on this the !n y of , 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 ordinan was read for the third time and passed finally
on this the I' day of typjC , 1910, 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
ATTEST:
, 19.
Ci Secretary c
1J&VED:
2
DAY OF
741444/4— , 1973:
J. BRUCE AYCOCK, CITY ATTORNEY
tant City Attorney
MAYO
THE C'" OF CORPUS CHRISTI, TEXAS
17787
T.
, -1. PUBLISHER'S AFFIDAVIT
1
STATE OF TEXAS, L.
County of Nueces. JJ
Before me, the undersigned, a Notary Public, this day personally came. ....... ___._...._....
AD#29558
City of C.C.
11
GRACIE DE LUNA
who being first duly sworn, according to law, says that he is the
ADM. ASST. SECRETARY 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 gMS.AG1aErRST.�EARING_.__
of which the annexed is a true copy, was published in CALLER—TIMES PUBLISHING CO.
on the 8th day of August19 83, and once each S14.X_ thereafter for...._... onP
consecutive. day
One
Times.
25.74 GRACIE DE LUNA
ADM. ASST. SECRETARY
Subscribed and sworn to before me this U .t b.._.dayoof
EUGENIA S. CORTEZ
August 19 83
otary Bbblic, Nueces County, as
Iv
iNOTJCE OF PASSAGE
..OF ORDINANCE ON
.
F I R ST4 R E A D I NG-
UTHORIZING•THE EXE•
UTIIRN OF AN
MENDMENT TO THE
EASE AGREEMENTS
ITH UNICORN VEN-
TURES AT THE CORPUS
CHIRSTI INTERNATION•
AL AIRPORT FOR THE
PLACEMENT OF VIDEO
GAMES AND ESTABLISH-
ING LEASE RENTAL
RATES
Was passed on first read-
ing by the City Council of
the City of Corpus Christi,
Texas on the 3rd day of.
August, 1983. The full text of
said ordinance is available
to the public in the Office of
the C ty'Secretary
-s•BSI G, a...+
City Seci
Corpus Christi, c r