HomeMy WebLinkAbout021028 ORD - 11/20/1990AN ORDINANCE
AUTHORIZING THE EXECUTION OF AN INTERIM LEASE AGREEMENT WITH
CRESCENT AIRWAYS, INC. FOR THE LEASE OF PROPERTY AT CORPUS
CHRISTI INTERNATIONAL AIRPORT; AND DECLARING AN EMERGENCY.
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 an interim Lease Agreement with Crescent Airways, Inc. for the
lease of property at Corpus Christi International Airport, 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.
SECTION 2. That upon written request of the Mayor or five
Council members, copy attached, to find and declare an emergency due
to the need of executing the abovementioned Lease Agreement at the
earliest practicable date, such finding of an emergency is made and
declared requiring suspension of the Charter rule as to consideration
and voting upon ordinances at three regular meetings so that this
ordinance is passed and shall take effect upon first r ading as an
em ency measure this the ;-)Q day of 6(L( Y`ti LLVu
19 ,
ATTEST:
41',-
City Secretar421S72y t OR
THE CITY OF CORPUS CHRISTI
APPROVED: / DAY OF �%fzk� b9„ , 19 90
HAL GEORGE, CITY ATTORNEY
Vii•Otesta.--
BY . -Ki /.(.a�ylck k'atU�t.-
Assistant ity Attorney
ORD-RES\90173
21
A4i ROFJLIVIED
LEASE AGREEMENT
WITH CRESCENT AIRWAYS, INC.
THIS LEASE AGREEMENT ("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 ("City") and Crescent Airways, Inc., a
Florida corporation doing business in Texas ("Crescent");
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, Crescent wishes to provide specialty use
aviation services.
NOW, THEREFORE, the Parties agree as follows:
ARTICLE I
DESCRIPTION OF LEASED SPACE
City leases unto Crescent Airways, Inc. an area
designated for commercial hangar and aviation specialty
operations located generally on the north side of the
terminal building as described on Exhibit "A" which is made
a part hereof as if set forth herein, "Premises".
ARTICLE II
PRIVILEGES, RIGHTS, USES AND INTERESTS
A. USE OF LEASED PREMISES. Crescent Airways, Inc.
shall use the leased Premises for helicopter charter
operations, including maintenance and repair of their
equipment, and shall also have the right to repair and
maintain all helicopters.
B. RIGHT TO USE AIR FIELD. Crescent Airways, Inc.
shall have the right to use the public areas and public
airport facilities including the runways, taxiways, aprons,
ramps and navigational aids and facilities in common with
others so authorized, subject to and in accordance with the
laws of the United States of America and the State of Texas,
and the rules and regulations promulgated by their authority
with reference to aviation and air navigation, and in
accordance with all reasonable and applicable rules,
regulations, ordinances and Charter of the City. Crescent
will be allowed to park up to eight (8) helicopters on the
ramp area adjacent to the Premises.
C. RIGHTS ENUMERATED. Crescent Airways, Inc. shall
have the following rights:
\AG\90AG008.CRP.mm 1
1. To store aircraft fuels, lubricants, and
propellants on the leased Premises.
2. To maintain and operate mobile equipment when
reasonable and necessary to fill and dispense aircraft
fuels, lubricants and propellants on the leased Premises and
within the area described above, with right of access to the
runways and connecting taxiways.
3. To maintain, store and service rotary wing
aircraft which shall include hangar storage of aircraft,
major and minor overhaul and repair of aircraft, repairing,
inspection and licensing of same, and purchase and sale of
parts, equipment and rotary wing aircraft accessories.
4. To purchase and sell, within the leased
Premises, aeronautical charts, publications, caps,
sunglasses, computers, radios, and other aviation related
items normally sold and dispensed by commercial specialty
hangar operators.
5. To rent, lease and charter rotary wing
aircraft and to engage in the business of teaching and/or
otherwise instructing flying and aircraft mechanics on
rotary wing aircraft.
6. To place and erect signs and advertising
material within the hangars, offices and shops on the leased
Premises at Crescent Airways' discretion; and to place and
erect signs and other advertising material on the outside of
Crescent Airways' buildings, shops and offices, provided
that the size and shape of such signs shall conform to the
general appearance of the airport premises and subject to
the approval of the Director of Aviation; and to place and
erect signs and advertising material at other locations on
the airport, provided that written permission is obtained
from the Director of Aviation prior to the installation of
any sign or advertising material at any location, and
subject to the order of the Director of Aviation 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 Crescent Airways, Inc. is prohibited from any
such use or activity except as noted:
1. Ground Transportation for hire. Crescent
Airways, Inc. 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. Automobile Rental Service, except as agent
for auto rentals firms located on the airport under the
terms of a contract with the City. Any such rentals shall
be included in the computation by the auto rental company
for percentage payments to the City.
3. News and sundry sales except for those
aviation related items as mentioned hereinabove.
4. Advertising concessions.
\AG\90AG008.CRP.mm 2
5. Barber, valet and personal services.
6. 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.
7. The sale of flight and/or trip insurance.
8. Commercially engaging in the business of
making reservations for hotels, motels and other lodging.
ARTICLE III
CONSTRUCTION OF IMPROVEMENTS
Prior to construction or substantial repairs of any
improvements on the leased Premises, Crescent Airways 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.
ARTICLE IV
ACCEPTANCE OF PREMISES
Crescent Airways, Inc. acknowledges that the Premises
have been inspected and accepts the leased Premises in its
present physical condition. Crescent will perform
maintenance items mutually agreed upon between the Director
of Aviation and Crescent and will receive rental credit, not
to exceed one-half of total rental due.
ARTICLE V
TERM OF AGREEMENT
The term of this Agreement shall be for one year,
commencing upon , 1990, and
expiring one year from the effective date, provided,
however, that this Agreement may be terminated by a thirty
day written notice of termination tendered by either party.
ARTICLE VI
RENT
1. Rent will be $3000 per month, subject to credit for
maintenance items as set out in Article IV.
2. City appoints its Director of Aviation as its
agent to receive all rentals and reports under this lease
and Crescent Airways, Inc. will submit said reports and
payments to the Director of Aviation. City may designate
others as agents to inspect Crescent Airways' books and
records, such inspections to be performed at reasonable
times during working hours.
3. In addition to all other remedies which City may
have to enforce the obligations of Crescent Airways, Inc.,
City shall have a lien on all property of Crescent Airways
placed on said Premises for all moneys, rents, shares of
gross receipts and other obligations of Crescent Airways.
\AG\90AG008.CRP.mm 3
4. By the terms "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.
5. 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".
6. Two (2) cents per gallon for each gallon of
gasoline and/or other propellants and fuels purchased by
Crescent Airways, except as to gasoline sold to commercial
airline aircraft holding valid operating contracts on the
airport or for Crescent's personal use. Crescent Airways
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.
7. 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: Flowage fee, six and one-fourth (6-1/4) cents per
gallon.
On the first day of the next calendar month after
the rentals begin under this lease, Crescent Airways 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 purchased by Crescent Airways and the total
gross receipts on the above mentioned apron during the
preceding calendar month and shall submit said report to
City along with the rental to be paid thereunder prior to
the tenth day of said calendar month. Crescent Airways
shall submit a like report and payment therefor for each
succeeding month during the term of this lease. Crescent
Airways 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.
\AG\90AG008.CRP.mm 4
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 Crescent Airways, Inc. by this lease.
B. To make water, gas and wastewater service
available upon the same basis as applies to businesses
within the City of Corpus Christi. Crescent Airways, Inc.
shall pay all charges for water, gas, wastewater,
electricity and other public utilities supplied to Crescent
Airways and/or Crescent Airways' Premises during the term of
this lease as such charges become due and payable.
ARTICLE VIII
UNDERTAKINGS OF CRESCENT AIRWAYS
Crescent Airways, Inc. further covenants as follows:
A. At its own expense, to maintain the leased
Premises and all improvements thereon in a presentable
condition consistent with good business practice and equal
in appearance and character to other similar improvements on
the airport, subject to provisions of Article IV.
B. To remove from the leased Premises all waste,
garbage, rubbish, junk, unused parts and other refuse, and
not to deposit the same or allow the same to accumulate,
except temporarily in connection with collection for
removal, on any part of the leased Premises or other
property located within the airport site; provided, however,
that City may provide garbage service for a reasonable fee
consistent with charges made to commercial establishments of
a similar nature.
To make adequate provision for and to dispose of
waste oils and lubricants off the airport property. No
waste oils and lubricants may be disposed of into the
airport wastewater system. Crescent Airways shall indemnify
the City for all pollution, and remediation thereof
including without limitation any fines levied, or resulting
from Crescent Airways' use or disposal of such waste oils
and lubricants on the leased Premises. Crescent shall also
indemnify the City for all pollution, and remediation
thereof including without limitation any fines levied,
resulting from leaking underground storage tanks which it
uses or installs upon said Premises.
\AG\90AG008.CRP.mm 5
City acknowledges that the underground storage
tanks "USTs" installed and operated by previous lessees have
leaked and contaminated the soil and water in the area
immediately adjacent to the USTs. The extent of the area
contaminated is currently unknown. City agrees to indemnify
and hold harmless Crescent with regards to any previous
fuel, oil, or petroleum based product contamination of the
Premises by prior lessees.
However, Crescent has an obligation pursuant to
Article VIII B. not to pollute the Premises. City does not
indemnify Crescent for any pollution caused by Crescent's
sale or storage of petroleum based products.
C. To supply good, prompt and efficient service on
rotary wing aircraft 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 Crescent Airways or its
tenants and sublessees will be allowed to make reasonable
and nondiscriminatory discounts, rebates or other similar
type of price reductions to volume purchasers. Nothing
herein contained is intended to nor shall be construed as
vesting in City the power or authority to regulate Crescent
Airways charges for aircraft charter service and services
specifically related to such service.
ARTICLE IX
GENERAL PROVISIONS
A. INDEMNIFICATION. Crescent Airways is and shall be
deemed to be an independent contractor and operator
responsible to all parties for its 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, Crescent Airways will indemnify and
save harmless City from any and all losses or claims for
damages, including, without limitation, personal injury or
death or workers compensation claims or property damages,
that may proximately result to City from any negligence on
the part of Crescent Airways, Crescent Airways' agents,
servants, employees, construction contractors and invitees,
and for the negligence of its tenants and sublessees.
B. INSURANCE. Crescent Airways will carry public
liability insurance in the minimum sum of $500,000 single
limit. All insurance shall be carried in a responsible
company authorized to do business in Texas and shall name
City as an insured. Such policy shall, in addition, be
\AG\90AG008.CRP.mm 6
endorsed to provide for cross -liability between the named
insureds. Such policy shall be in a form satisfactory to
City. All such policies shall provide for a minimum of
thirty (30) days notice to the City in the event of
cancellation, nonrenewal or material change in the terms
thereof. A new policy or endorsement in accordance with the
foregoing shall be presented to the Director of Aviation
thirty (30) days prior to the effective date thereof.
Failure to timely present a new policy or endorsement shall
be a default hereunder. The City Manager shall have the
right to modify the minimum level of coverage required
herein to meet legislative mandates or for other change in
circumstances. Prior to changing the insurance requirements
the City shall give Crescent Airways sixty (60) days notice
of its intention to modify the level of coverage. Upon
City's written request Crescent will provide copies of all
insurance policies.
C. NOTICES. Notices to City shall be deemed
sufficient if in writing and mailed, postage prepaid,
addressed to the Director of Aviation, Corpus Christi
International Airport, 1000 International Drive, Corpus
Christi, Texas 78406, or to such other address as may be
designated in writing by City from time to time. Notice to
Crescent Airways shall be deemed sufficient if in writing
and mailed, postage prepaid, addressed to Crescent Airways,
Inc, 7501 Pembroke Rd., North Perry Airport, Hollywood, FL
33023, Attn: Dean Shealy.
D. TAXES. Crescent Airways will pay any and all real
and personal property taxes levied from time to time upon
the improvements placed upon the leased Premises.
E. 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 Crescent
Airways and City.
F. DESTRUCTION. In the event that Crescent Airways'
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 Crescent Airways and City to such an
extent that the airport cannot be operated as an airport,
then this agreement shall terminate.
In the event that the leased Premises or Crescent
Airways improvements or the airport facilities reasonable
and necessary for Crescent Airways to conduct Crescent
Airways business are partially destroyed or damaged due to
acts of God or other acts outside the control of Crescent
Airways 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 be
suspended during the period of such partial damage or
\AG\90AG008.CRP.mm 7
destruction and shall not begin or resume until the damage
has been repaired. City shall be the sole judge of the
extent of the damage or destruction to the airport and shall
have an option to either declare this lease terminated or
suspended or to repair the airport facilities or in case of
damage or destruction to Crescent Airways' improvements, to
either declare the lease terminated, suspended or to require
Crescent Airways to repair the improvements, and fix the
time within which such repairs shall be made.
G. SUBORDINATION. This lease shall be subordinate to
the provisions of any existing or future agreement between
City and the United States relative to the operation or
maintenance of the airport, the execution of which has been
or may be required as a condition to the expenditure of
federal funds for the development of the airport. Should
the effect of such agreement with the United States be to
take any of the Premises under this lease out from the
control of City or to substantially destroy the commercial
value of the leased Premises, then City must provide
adequate premises to Crescent Airways or this agreement
shall terminate.
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 Crescent Airways, unless within said time Crescent
Airways has fully complied with the rental provisions.
Default in any of the other covenants on the part
of Crescent Airways shall likewise give City the right to
terminate this lease at any time after thirty (30) days
notice in writing has been given Crescent Airways, unless
within said time Crescent Airways has fully corrected the
condition creating the default. City will specify in such
default notice the lease provision under which City claims
that Crescent Airways is in default, and the acts or
omissions giving rise to the claimed default.
I. Crescent must report to the FAA, Airports
Division, Southwest Region, Fort Worth, TX 76193, within
sixty (60) days of the end of each calendar year, the number
of all revenue passengers enplaned at Airport. The report
shall be on the FAA form for helicopter enplanements. The
report is required to be in compliance with the format set
forth in the Airport and Airway Safety and Capacity
Expansion Act of 1983, Public Law 100-223.
J. Crescent shall post a $10,000 bond, letter of
credit, certificate of deposit endorsed to and held by the
City, or other similar security "Security" if Crescent sells
or stores petroleum products on Premises. Such Security
shall be provided ten (10) days prior to initial sale or
storage of petroleum products on Premises. Security shall
\AG\90AG008.CRP.mm 8
be valid for a minimum of one (1) year from the date of
issuance, "Anniversary Date" and shall be automatically
renewed for periods of one (1) year from Anniversary Date,
unless at least sixty (60) days prior to each Anniversary
Date the issuing institution notifies the Director of
Aviation, or his designee, of intent not to renew. Failure
to provide the Director of Aviation, or his designee, with a
new or renewed Security at least thirty (30) days prior to
each Anniversary Date shall be a breach of this Agreement
and the City may terminate this Agreement or call in the
Security. If the Security is called Crescent shall have
twenty (20) days to provide new Security or be held in
default under this Agreement.
ARTICLE X
TRANSFER OF LEASE
The written authority of the City shall be obtained by
Crescent Airways prior to any sale, reassignment, transfer
or subassignment of this lease. Should Crescent Airways
borrow money or otherwise finance the improvements to be
constructed hereunder, and should it become necessary for
any lender, financing agency or guarantor to foreclose and
take over this lease because of Crescent Airways' failure to
pay, said lender, financing agency or guarantor may operate
the lease subject to all of its provisions, provided all
obligations of Crescent Airways are met and all payments
owing be paid.
ARTICLE XI
AIR OPERATIONS AREA SECURITY
Crescent Airways 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, and any regulations
imposed upon City by the Federal Aviation Administration.
Crescent Airways 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 Crescent Airways'
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,
Crescent Airways shall not on the grounds of race, sex,
creed or national origin discriminate or permit
\AG\90AG008.CRP.mm 9
discrimination against any person or group of persons in any
manner prohibited by Part 21 of the Regulations of the
Secretary of Transportation. City hereby expressly retains
the right to take such action as the United States may
direct to enforce this nondiscrimination covenant.
EXECUTED on this 18 day of OCTOBER
, 1990.
ATTEST: CRESCENT AIRWAYS, INC.
ATTEST: CITY OF CORPUS CHRISTI
City Secretary Juan Garza, City Manager
APPROVED this a'd' day of
Or 'bt.t/ , 1990.
HAL GEORGE, CITY ATTORNEY
\AG\90AG008.CRP.mm 10
STATE OF FLORIDA
COUNTY OF BROWARD
This instrument
OCTOBER 18, 1990
was acknowledged before me on
by DEAN H. SHEALY
of Crescent Airways, Inc., a
behalf of said corporation.
[Title] PRESIDENT
Florida corporation, on
STATE OF TEXAS
COUNTY OF NUECES
ic-, State of RIDA
Notary
r+aQ.,/ 8 kit A,; I if q ee.
Notary's Name (printed) Q
My commission expires:
Notary Public State of Florida at Large
My Commission Expires November 14, 1992
Bonded Ihru Cornelius, Johnson & Clark Inc
•
This instrument was acknowledged
by Juan Garza, City
City of Corpus Christi, a Texas Municipal
behalf of said corporation.
before me on
Manager of the
Corporation, on
Notary Public, State of Texas
Notary's Name (printed)
My commission expires:
\AG\90AG008.CRP.mm 11
Exhibit A
AVIATION RELATED
COMMERCIAL AREA
TO STATE HIGHWAY 1.10. 44
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RALPH BURKE ASSOCIATES ENGN
MRI( ROOE.t: MNHEAP0t75.MN.
Corpus Christi, Texas
C day of cn ni c n flu 1, , 19 (7(i
TO THE MEMBERS OF THE CITY COUNCIL
Corpus Christi, Texas
For the reasons set forth in the emergency clause of the foregoing
ordinance an emergency exists requiring suspension of the Charter rule
as to consideration and voting upon ordinances at three regular
meetings; I/we, therefore, request that you suspend said Charter rule
and pass this ordinance finally on the date it is introduced, or at
the present meeting of the City Council.
Respectfully, Respectfully,
Council Members
THE CITY OF CORPUS CHRISTI
The above ordinance was passed by the following vote:
Betty N. Turner
Cezar Galindo
Leo Guerrero
Tom Hunt
Edward A. Martin
Joe McComb
Clif Moss
Mary Rhodes
Frank Schwing, Jr.
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