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HomeMy WebLinkAbout020776 ORD - 09/19/1989AN ORDINANCE AUTHORIZING THE EXECUTION CF AN INTERIM LEASE AGREEMENT WITH DOBBS HOUSES, INC. FOP OFFICE SPACE AT CORPUS CHRISTI INTERNATIONAL AIRPORT FOP ONE YEAR EFFECTIVE AUGUST 1, 1989; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY CORPUS CHRISTI, TEXAS: SECTION i. That the _pity Manager is hereby author'._ei'_ to execute an interim lease agreement with Dobbs Houses, Inc. office space at Corpus Christ:. Internacional Airport for one _ea: effective August 1. 1989, all as more fii_ly fr,e.t fart": in tiles lease agreement, l ubstant 1 cc.py Cf whi•'h 1: attache hetet: and made a part hereof. marked Exhibit A. SECTION 2. That i.ip:.n written inquest cf the Mayor :. five Council members, copy attached, r._, find and de^iare emergency 'due to the need for efficient ldminis:ratlon of City affairs by executing the afaremeriti ned lease agreement at th.= earliest practicable date, such finding of an emergen['y is mage and declared requiring suspension cf the Chatter rule as t± consideration and voting up.)*.i orcii:iance a'. three reg_. meetings so that this ordinance is _: a ser: and shall t_ ef`e: uponrst re ding 35 3n YI i'r:, y measure this the —1 ofi�ClllL�_ , 19 Y/ ATTEST: Secretary MAYOR THE CITY OF CORPUS CHR:ST7 APPROVED: DAY OF HAL GEORGE, CITY ATTORNEY BY Assistant City Attorney _`P.D-RES.'..8i90 D e-rprvsoisil ROFRMED OFFICE SPACE AND FEE AGREEMENT THIS OFFICE SPACE AND FEE AGREEMENT (this "Agreement") is entered into by and between the City of Corpus Christi, a municipal corporation having home rule powers under the laws of the State of Texas (the "City") and Dobbs Houses, Inc., a Delaware corporation doing business in Texas ("Dobbs"); WHEREAS, the City owns and operates the City of Corpus Christi International Airport, located at 1000 International Drive, Corpus Christi, Nueces County, Texas ("Airport"); and, WHEREAS, Dobbs is providing concessionaire services at the Airport and is in need of office space. NOW, THEREFORE, in consideration of the premises, and the charges, fees, rentals, covenants and agreements contained herein, the parties agree as follows: LEASED PREMISES The City leases to Dobbs, and Dobbs takes from the City, office space allocated in the Airport Terminal Building, identified in Exhibit "A", attached hereto and made a part hereof for all purposes ("Leased Premises"). TERM OF AGREEMENT The term of this Agreement shall be for one year, effective August 1, 1989 and expiring July 31, 1990, provided, however, that this Agreement may be terminated upon a thirty (30) day written notice of cancellation. RENT The minimum office space rent is $21.47 per square foot annually or $324.55 a month for 181.41 square feet (14'5" x 1217".) This rate is subject to change pending the outcome of on-going airline rates and fee negotiations for comparable and like space. A standardized rate is applied to all tenants for like space. Any new rate negotiated will become effective on the first day of the month after the new rates are effective. Rent is required one month in advance and is due on the 1st of each month. Payments shall be made at Corpus Christi International Airport, 1000 International Drive, Corpus Christi, Texas 78406 or at such other place in the City as the City may hereafter notify Dobbs, and shall be made in legal tender of the United States. All unpaid fees due the City shall bear a service charge of one and one-half percent per month if same are not paid and received by the City by the 503AG001.agr 1 30th day of the month in which payments are due, and Dobbs agrees that it shall pay and discharge all costs and expense, including reasonable attorney's fees, incurred or expended by the City in collection of such delinquent amounts due. IV. MAINTENANCE, USE, AND OCCUPANCY OF LEASED PREMISES Dobbs shall at all time maintain its Leased Premises and all furnishings or equipment thereon in a neat, orderly, sanitary and presentable condition and provide its own janitor service. Dobbs shall permit no damage to existing improvements; no spikes, hooks, nails or any other device shall be driven or screwed into the walls or other surfaces of the Leased Premises without prior written approval from the Director of Aviation. Concessionaire shall not do or permit to be done, any act or thing on its Leased Premises which will invalidate any fire insurance policies required under this Agreement or carried by the City covering the Terminal and storage areas which in the City's opinion may constitute a hazardous condition that will increase the risks normally attendant upon operations contemplated under this Agreement. Concessionaire shall take all reasonable steps to keep the Leased Premises free from all danger of fire. Concessionaire shall not create a fire hazard. Concessionaire shall refrain from activities which may destroy or damage Leased Premises. At the expiration of this Agreement, Dobbs agrees to deliver the Leased Premises to the City in the same condition as when rented, normal wear and tear excepted. The City shall furnish heating and air conditioning to the Leased Premises in such degrees as is furnished to other tenants in the same building area, and the City shall not be liable for any failure to supply the same when such failure is not due to negligence on its own part. General area light will be furnished by the City through the Fixtures involved for the general lighting of the area. Concessionaire shall comply with all statutes, laws, ordinances, orders, judgments, decrees, regulations, directions and requirements of all federal, state, City and other governmental authorities now or hereafter applicable to the Leased Premises or to any adjoining public ways, with regard to the manner or use or the condition of Leased Premises and Concessionaire's operations thereon or of adjoining public ways. Concessionaire shall have liability for and shall pay any fines assessed against Concessionaire or City due to the acts or omissions of Concessionaire regarding compliance with said statutes, laws, ordinances, etc., including, but not limited to, FAA security regulations and EPA regulations. All other terms in Article IV of the Dobbs Houses, Inc. Terminal News and Gift Shop Concession Agreement effective October 14, 1989 shall be made a part of this Agreement for all purposes. 503AG001.agr 2 V. INSURANCE AND INDEMNIFICATION 5.1 Insurance. Dobbs entered into a short-term concession agreement with the City on the 1st day of August, 1989, which expires upon the 14th day of October, 1989, which is the effective date of a ten year concession agreement with the City. Pursuant to said Dobbs Houses, Inc. Terminal News & Gift Concession Agreement, Dobbs is required to carry a One Million ($1,000,000.00) Dollar umbrella insurance policy. The Leased Premises under this Office Space and Fee Agreement shall be insured pursuant to said One Million ($1,000,000.00) Dollar umbrella insurance policy. The evidence of insurance of the Leased Premises herein shall be the same as the evidence of insurance for the Dobbs Houses, Inc. Terminal News & Gift Concession Agreement. All other insurance terms under said Terminal News & Gift Concession Agreement shall be applicable to the Leased Premises herein. 5.2 Indemnification. The Concessionaire agrees to indemnify and save harmless the City, its officers, agents and employees, from and against any and all loss of or damage to property or injuries to, or death of any persons, and from any and all claims, damages, suits, costs, expenses, liabilities, action or proceedings of any kind whatsoever, in any way resulting from, or arising out of the acts, omissions, or negligence of officers and employees of the Concessionaire or City arising out of this Agreement for the use and occupancy of the Leased Premises at said Airport. VI. GENERAL PROVISIONS 6.1 Assignment and Subletting. Dobbs agrees not to sublet the Leased Premises, or any part thereof, or any of the facilities described herein, nor assign this Agreement or any portion of the term hereof, without the prior written consent of the City. Such consent shall not be arbitrarily withheld, provided however any successor, sublessee or assign, in interest in this Agreement must meet all pertinent requirements as outlined herein. 6.2 Agreements with the United States. This Agreement is subject and subordinate to the provisions of any agreements heretofore or hereafter made between the City and the United States, relative to the operation or maintenance of said Airport, the execution of which has been required as a condition precedent to the expenditure of Federal funds for the extension, expansion or development of said Airport. 6.3 Modification for Granting FAA Funds. In the event that the Federal Aviation Administration requires, as a condition precedent to granting of funds for the improvement of said Airport, modifications or changes to this Agreement, Dobbs agrees to consent to such reasonable amendments, modifications, revisions, supplement or deletions of any of the terms, conditions or requirements of this Agreement, as may be reasonably required to enable the City to obtain said Federal Aviation Administration funds. 503AG001.agr 3 6.4 Governing Law. This Agreement shall be deemed to have been made in, and be construed in accordance with the laws of the State of Texas, venue shall be in Corpus Christi, Nueces County, Texas. 6.5 Compliance With Laws and Regulations. Dobbs shall comply with all statutes, laws, ordinances, orders, judgments, decrees, regulations, directions and requirements of all federal, state, city and other governmental authorities now or hereafter applicable to the Leased Premises or to any Leased Premises and Dobbs' improvements thereon or of adjoining public ways. 6.6 Non -Discrimination. Dobbs in exercising any of the rights or privileges herein granted, shall not on the grounds of race, sex, creed or national origin, discriminate or permit discrimination against any person or group of persons in any manner prohibited by Part 21 of the Regulations of the Secretary of Transportation. The City is hereby granted the right to take such action, anything to the contrary herein notwithstanding, as the United States may direct to enforce this nondiscrimination covenant. 6.7 Notices/Address. Except as herein otherwise expressly provided, all notices required to be given to the City hereunder shall be in writing and shall be sent by certified mail, return receipt requested, to the Director of Aviation, Corpus Christi International Airport, 1000 International Drive, Corpus Christi, Texas 78406. All notices, demands and requests by the City to Dobbs shall be sent by certified mail, return receipt requested, addressed to Dobbs at 5100 Poplar Avenue, Memphis, Tennessee 38137. 6.8 Successors and Assigns. All of the terms, provisions, covenants, stipulations, conditions and considerations of this Agreement shall extend to and bind the legal representative, successors, sublessees and assigns of the respective parties hereto. 6.9 Waivers. No waiver of default by either party of any terms, covenants and conditions hereof to be performed, kept and observed by the other party shall be construed as, or operate as, a waiver of any subsequent default of any terms, covenants or conditions herein contained, to be performed, kept and observed by the other party. 6.10 Terminal Construction. It is recognized that conditions may change in the Airport making it necessary and desirable for the benefit of the traveling public to revise, move, rearrange, or reconstruct all or part of the Terminal. In such event, it is agreed that the City shall have the right to move Dobbs' premises to another location, provided the substitute premises are comparable to the premises described herein and provided further, that any such move for the convenience of the City shall be at no expense to Dobbs. In such event, Dobbs will not be required to close down its currently occupied premises until it can move into the new facility. 6.11 Airlines Contract and Rental Rates. Dobbs shall be subject to all terms and conditions of any contract between the City and the major airlines at the Airport, with regard to rental rates. 503AG001.agr 4 6.12 Entire Agreement. This Agreement, together with all exhibits attached hereto, constitutes the entire Agreement between the parties hereto and all other representatives of statement heretofore made, verbal or written, are merged herein and this Agreement may be amended only in writing, and executed by duly authorized representatives of the parties hereto. IN WITNESS THEREOF, the parties have executed this Agreement to be effective as of June 1, 1989. ATTEST: CITY OF CORPUS CHRISTI By: By: Armando Chapa, City Secretary Juan Garza, City Manager Approved this day of �;��,�,.; DOBBS HOUSES, INC. 1989, by Hal George, City Attorney By t /�C.i4ii Assistant •(), r-r,�"r� ;i'ty Attorney By: ItsVice P e e-nt/General Manager, Merchandise Concessions 503AG001.agr 5 ,r -o' • ro __tit 13Alc '>; Ju � r EXHIBIT "A"i Corpus Christi, Texas day of _,yr <l ' , 193(' TO THE MEMBERS OF THE CITY COUNCIL Corpus Christi, Texas For the reasons set forth in the emergency clause of the foregoing ordinance or resolution, an emergency' exists requiring suspension of the Charter rule as to consideration aria voting upon ordinances or resolutions at three regular meetings; I/we, therefore, request that you suspend said Charter rule and pass this ordinance or resolution finally on the date it is introduced, or at the present meeting of the City Council. Respectfully, Respectfully, 99.045.01 Council Members f' MAYOR THE CITY OF CORPUS CHRISTI, TEXAS The above ordinance ;as passed by ;he rollcwinc vote: Betty N. Turner (le f David Berlanga, Sr. (,(i _ Leo Guerrero (4 j Tom Hunt ((t l ). Edward A. Martin ((t )(. Joe McComb (IL 1, Clif Moss (e )1: Mary Rhodes (?( ic Frank Schwing, Jr. (it' 20776