HomeMy WebLinkAboutC2006-540 - 12/12/2006 - ApprovedGround Lease at Corpus Christi International Airport
Between the
City of Corpus Christi
and
Chet Rasberry
1
2006-540
12/12/06
Ord027077
Raspberrv, Chet
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WHEREAS, the City of Corpus Christi ("City") owns the Corpus Christi International
Airport ("Airport"), located in Nueces County, State of Texas;
WHEREAS, Chet Rasberry, a natural person ("Lessee") desires to lease a certain parcel of
land at the Airport to operate a helicopter maintenance facility and helicopter charter operations.
WHEREAS, the parties wish to enter into a written lease far land ("Lease") which includes
building and hangar improvements and vehicle parking areas for the purpose of operating a
helicopter maintenance facility and helicopter charter operations;
NOW THEREFORE, in consideration of the mutual covenants contained herein, the Parties
agree as follows:
Agreement:
1. Premises City leases to Lessee the land located to the northeast side of the Airport
terminal building as more particularly described in the attached and incorporated Exhibit A
("Premises"). T'he Premises inciudes approximately 91,250 square feet of land, together with
improvements, easements, access for ingress and egress, and parking areas.
2. Term Subject to the remaining terms and conditions hereof, the term ("Term") of
thi Lease is tyventy (20) years beginning upon the 615t day after final City Council approval which is
_,~~_, 2006 ("Eff'ective Date"), and terminating on the twentieth year anniversary
thereafter ("Termination Date"). [f the Effective Date of this Lease is a day other than the first day
of a calendar month, then the Original Term of this Lease shall be deemed extended by the number
of days between the Effective Date of this Lease and the first day of the next calendar month
following the Effective Date of this Lease, so that the Original Term shall expire twenty (20) years
after said first day of the first calendar month following the Effective Date of this Lease.
~. Ground Rent.
A. Calculations.
The per annum rent for the Premises as shown on Exhibit A and hereafter as may be
ar~ended, shall be calculated as follows:
i. Years 1 through 3 of the Lease: seventeen cents ($.17) per square foot.
ri. Years 4 through 6 of the Lease: nineteen cents ($.19) per square foot.
iii. Years 7 through 9 of the Lease: twenty-one cents ($.21) per square foot.
~v. Years 10 through 12 of the Lease: twenty-three cents ($.23) per square foot.
v. Years 13 through l S of the Lease: twenty-five cents ($.25) per square foot.
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vi Years 16 through I R of the Lease: twenty-seven cents ($.27) per square foot.
vii. Years 19 through 20 of the Lease: thiriy cents ($.30) per square foot.
B. Initial Improvements. Lessee shall make improvements to restore the hangar and
building to tenable condition and to improve the paved area of the Premises which shall be
of a minimum value of $50,000.00. Plans and specifications far the improvements along
with an itemized list of improvements including receipts or invoices shall be provided to
City upon completion c~f Initial Improvements. City's representative will inspect
improvements to verify that the work was completed in accordance with plans and
specifications provided to the City. All required City permits shall be obtained by the Lessee
priar to beginnin~ wark on improvements. All improvements shall be completed within one
hundred twenty (120) days from the effective date of this Lease. A certificate of occupancy
must be obtained by the [.essee prior to operating from the Premises. Lessee shall not
conduct any business on the Premises prior to the completion of the Initial Improvements
excluding the improvements to the paved areas. Improvements made under this Section shall
comply with all requirements as outlined in Section 9 of this Lease.
C. Pa,ying Rent. Cin~ will bill Lessee at the rental rates provided above, prorated on a
monthly basis. Said rent is due on the 15` day of each calendar month of the Lease Term.
Lessee must pay the rent prior to the 10``' day of each month.
D. Agent. The City Manager appoints the Aviation Director, or designee ("Aviation
Director"), as agent to receive all rentals, notices and reports under this Lease.
4. Use of Premises. Lessee must use the Premises for the purposes of a helicopter maintenance
facility and helicopter charter operations, and for no other purpose without the express written
consent of City Manager. Lessee must supply services on a fair, equal and nondiscriminatory basis
to all users thereof,
A. Parking. Lessee may park facility business related automobiles, trucks, vans and
similar vehicles on the leased Premises only without the payment of any additional fees to
City; provided, however, that Lessee complies fully with all of Aviation Director's rules and
regulations for parking and vehicle usage at the Airport.
B. Signs. Lessee, at Lessee's sole cost, may install city ordinance compliant signs or
other corporate identification of its business on the Premises, provided; however, that Lessee
has obtained Aviation Director's prior written consent as to the size, type, design and
location of these signs or other corporate identification, which consent shall not be
unreasonably withheld.
C. Setting Lessee's Rates. Nothing contained herein is intended to construe, nor will
be construed, as vesting in City the power or authority to regulate Lessee's charges for
services.
D. Noise. Lessee's use of the Premises must not substantially interfere with the
comfortable enjoyment of the premises of other present or future tenants of the Airport.
Particularly between the hours of 1 ~:OOpm and 7:OOam, Lessee must make every effort to
minimize noise that would disturb other tenants or unreasonably interfere with their use
~~f their respective premises.
E. Fuel Storage. Under Ground Fuel StorageTanks (I1GFT) are specifically
prohibited from the Premises. Above Ground Fuel StorageTanks (AGFT) are permitted
on the Premises only to the extent that they comply with any and all zoning and other
regulatory laws, ordinances, statutes, rules, and regulations, including, but not limited to,
the International Fire Code, as adopted by the City's Code of Ordinances. Lessee must
follow all applicable provisions in Section 9 for the installation of an AGFT.
5. Acceptance. By Lessee's execution of this Lease, Lessee acknowledges that it has
inspected the Premises and accepts the Premises in its present physical condition.
6. Asaignment and Sublease. Except for an assignment to a parent, affiliate, or subsidiary,
which is hereby authorized, Lessee may not at any time assign, transfer, convey, sublet, mortgage,
pledge, or encumber its interest under this Agreement, or any part of the Lessee's Leased Premises,
to any parly without the prior written approval of the CITY, which approval will not be
unreasonably withheld. In the event that Lessee shall, directly or indirectly, assign, sell, hypothecate
or otherwise transfer this Agreement, or any portion of Lessee's Leased Premises, without the prior
wr~tten consent of the CITY except as allowed for above, the CITY, in its sole discretion may
terminate this Agreement.
7. R~~ht to Amend. If the Federal Aviation Administration or its successor ("FAA"), requires
modifications or changes in this Lease as a condition precedent to granting funds for Airport
improvements, Lessee agrees to consent to the amendments, modifications, or changes of this Lease
as may be reasonably required to obtain the funds provided; however, that Lessee will not be
required to pay increased rent or change the use of the Premises or accept a relocation or reduction
in size ofthe Premises until Lessee and City have fully executed an amendment to this Lease that is
mntually satisfactory to all parties for any terms ar conditions of this Lease affected by said actions.
8. Sabordination to U.S./FAA Requirements. This Lease is subordinate to the provisions of
any existing or future agreement between City and the United States relating to the operation or
maintenance of the Airport, where the execution of said agreement(s) is required as a condition to
the expenditure of federal funds for the development of the Airport. If the effect of said
agreement(s) with the United States, either under this Section 8 or under Section 7 above, is to take
any of the Premises under this Lease out from the control of City or to substantially destroy the
commercial value of the Premises, then City must at City's expense provide Lessee with land and
facilities substantially sirnilar to the Premises and the Improvements occupied by Lessee on the
Premises if available premises exist for the remainder of the Original Term as well as any
successfully exercised Extended Term.
9. Construction of I~-provements. All plans and specifications for Lessee's Improvements
and all renovations, remodeling, refurbishing and construction upon the Premises must meet all City
fire, building and other applicable city, state and federal regulations and code requirements,
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including obtaining required building permits. In the event that the current structure as shown on
Exhibit A is altered, upon final completion and acceptance of the Improvements by Lessee, Lessee
must provide two sets of Mylar as-built plans and one electronic copy of the record documents to
Aviation Director, who will keep one set of plans on file at the Airport and provide the other set to
the City Secretary for incorporation into this Lease as Exhibit B. Exhibit B becomes effective upon
filing with the City Secretary and subsequent attachment to this Lease.
Lessee must keep said documents current, by providing two sets of Mylar "as-built" plans and
one electronic copy of all record documents showing any alteration in excess of $15,000 to the
Premises during the term of the I.ease to Aviation Director, to be attached to this Lease in the same
manner as provided for the original plans and specifications. The exterior design and color scheme
plans and specifications for Lessee's improvements must be approved by Aviation Director, which
approval will not be unreasonably withheld. If a mutually satisfactory exterior design and color
scheme cannot be agreed upon by Aviation Director and Lessee within 90 days of execution of the
Lease, this Lease terminates and Lessee has no further obligations hereunder. No substantial
changes or alterations may be made to said plans or specifications after initial approval by Aviation
Director without further written approval by Aviation Director.
Lessee, at its expense, shall obtain all licenses and permits required prior to performing any
maintenance, repairs, construction on, or use of the Premises. The costs of developing all plans and
specifications as provided herein and the construction of improvements and facilities upon Premises
must be paid solely by Lessee, without any cost or expense to City whatsoever.
Upon termination c>f this Lease, ownership of Improvements constructed by Lessee on the
Premises during the term of this Lease revert to City, free and clear of all liens, claims and other
encumbrances or adverse interest in the Premises or Improvements.
During the construction of Improvements, Aviation Director may, after providing reasonable
notice to Lessee, enter upon the Premises during City's normal business hours and make inspections
as may be necessary to ensure that the construction of Improvements is performed in accordance
with the requirements of this Lease.
During this Lease, Lessee shall (subject to the other terms and conditions of this Lease) have
the continuing right to remodel, renovate and refurbish the Premises and Improvements, or any part
thereof, and to build and construct new additions and improvements thereon and thereto, provided;
however, that Lessee has obtained the prior written consent of Aviation Director, whose consent to
the modifications will not be unreasonably withheld.
A. Required Provision Bonds. Lessee must include or cause to be included in any
construction contract or subcontract a Payment and Performance Bond for any work in
excess of $15,000 to be performed by Lessee by or through its contractors and
subcontractors.
B. Liens. Lessee must not allow a lien to attach to the Premises or Lessee's leasehold
interest without the prior written approval of City Manager. Notwithstanding City
Manager's approval, City's fee simple interest in the surface estate burdened by Lessee's
leasehold estate must be exempt from said lien, and any lien must contain the following
5
language:
"Lenders agrees that the (ien created by this instrument is effective only as to Lessee's
leasehold estate created by the lease dated the day of , 200 ,
executed by the City of Corpus Christi, as City and (Name to be Inserted), as Lessee, and
does not affect City's interest, being the fee simple estate burdened by Lessee's leasehold
estate.'"
Or other language as is approved by City Attorney.
[n the event of any foreclosure by any lender, financing agency, or guarantor of its lien or
liens on the Improvements constructed by Lessee, fixtures, or trade fixtures located on the
Premises, said lender, financing agency, or guarantor succeeds hereunder to all rights,
privileges, and duties of Lessee, including without limitation paying rent, as if said lender
was originally named tenant herein, and said lender, financing agency, or guarantorwill have
a reasonable time after the date of foreclosure (not less than three hundred sixty (360) days)
to sublease the remaining Improvements to those parties that are pre-approved by City
Manager in writing.
C. Certificate of Occupancy. Lessee covenants that all construction, including all
workmanship and materials, will be of first-class quality and as approved by Aviation
Director. As used herein, the term "first-class quality" means of the same quality as
buildings used or to be used for the same or similar purposes already constructed on the
Airport.
After completing construction of Improvements on the Premises, Lessee must certify to
Aviation Director that the alteration was completed according to the approved plans and
specifications and that Lessee has complied with all applicable federal, state, and local laws,
and regulations,
Prior to Lessee oceupying the Improvements, a Certifieate of Occupancy must be provided to
the Aviation Director.
D. Alterations. Lessee must not make an external or internal alteration that in total cost
combined exceeds $15,000, or install any fixtures, except trade fixtures, furniture and other
items of personal property removable without material damage to the Premises during the
Lease without Aviation Directar's prior written approval, which shall not be unreasonably
withheld. [f the Premises are damaged by said removal, they must be immediately repaired
by Lessee.
E. Construction Indemnity. Lessee must include in all construction contracts
entered into, a provision requiring the contractor, or, in the alternative, Lessee, to
indemnify, hold harmless, defend and insure City, including its officers, agents, and
employees, against the risk of legal liability for death, injury or damage to persons or
property, direct or consequential, arising or alleged to arise out of, or in connection
with, the performance of any or all of the construction work, whether the claims and
demands made are just or unjust, unless same are caused by the gross negligence or
wlttful act of City, its officers, agents, or employees. Lessee must furnish, or require the
coatractor to furnish insurance as required in Section 21 herein.
10. Repair, Maintenance, and Utilities. Lessee, at its own expense, shall make any and all
repairs a~d replacements necessary to keep the Premises in a first-class condition and in safe repair
and shall make any and all repairs and replacements necessary to remedy defects of a structural
nature. Lessee shall, at its own expense, provide janitorial service and maintenance to keep the
Premises in a clean, attractive and sanitary condition at all times. The landscaping must be well
maintained and kept in a neat and tidy condition. Aviation Director shall have the right to inspect
the Premises during City's normal business hours without prior notice. The City shall have the right
at any and all times of ingress, egress, and regress on and over the Premises for the purposes of
conducting and carrying on any business incident to activities of the City.
Lessee, at its own expense, shall repair any and all damage caused to real and/or personal property of
City occurring on the Prernises, including damage caused to the Improvements, or elsewhere on the
Airport as a result of the willful or negligent acts or omissions of Lessee, its employees or agents.
Lessee has no obligation to make any structural improvements to the paved common use areas ofthe
Airport, which is solely the obligation of City, including any obligation to maintain, repair,
resurface, repave or cap the surface of the paved common use areas.
Lessee shall be responsible for the cost of all utility services for the Premises.
l 1. Aceess to the Aireraft Operating Area. Lessee and its respective contractors, suppliers of
materials and furnishers of services, employees, agents, and business invitees, must comply with all
present and future laws, rules, regulations, or ordinances promulgated by the City, the Airport, the
TSA or the FAA, or other governmental agencies to protect the security and integrity of the Aircraft
Operating Area ("AOA"), as defined by the Airport and the FAA, and to protect against access to the
.AOA by unauthorized persons.
Subject to the approval of ~Aviation Director, Lessee must adopt procedures to control and
limit access to the AOA by Lessee and its respective contractors, suppliers of materials and
furnishers of services, employees, and business invitees in accordance with all present and future
Airpon, TSA and FAA laws, rules, regulations, and ordinances. Physical barriers to prevent access
to the AOA must be in effect during the construction of Improvements upon the Premises.
Lessee further agrees to indemnify, hold harmless, defend and insure the City, its
offlcers, agents, and employees against the risk of legal liability for death, injury, or damage to
persons or property, direct or consequential, arising from entry of persons into the AOA
w~ere permitted, allowed or otherwise made possible by Lessee, its assignees and their
respective contractors, suppliers of materials and furnishers of services, employees, business
invitees, agents, or any person under the direction of Lessee in violation of City, Airport, TSA,
anrl FAA laws, rules, regulations, or ordinances or Lessee's approved procedures for
controtling access to the AOA.
Lessee must obtain employee identification badges far all personnel authorized by Lessee to
have access to the AOA in accordance with the provisions of Federal Aviation Regulations 49 CFR
Part 1_542, and other laws, rules. and regulations and ordinances. Each of Lessee's employees
ne~iing access to a restricted area (including the AOA, see Section 11) must wear a security
identification badge. Lessee will pay a fee for each badge and a replacement fee for each lost badge.
~viation Director may also require the payment of a reasonable deposit fee for each security badge
issued consistent with fees charged to other tenants at the Airport. Lessee must notify Aviation
Director immediately after an employee is terminated or loses a badge. Lessee and all Lessee
personnel must comply with all City and Federal security regulations and requirements.
Lessee must pay all FAA and TSA fines associated with security breaches/infractions by
Lessee's agents, officers, busines5 invitees, and employees in the AOA, regardless of whether the
fine is assessed to City, Airport, or Lessee or its assignees, and its or their respective agents, officers,
business invitees, or employees as set out in the City Code of Ordinances, Sec. 9-31.
A. Movement into Aircraft Operations Area ("AOA"). Lessee will have access to
the Airport, subject to compliance with all applicable FAA, TSA, and Airport security
procedures. Movement of all persons in the AOA/Premises must be cleared in accordance
with Airport, TSA, and FAA rules and regulations. Lessee is primarily responsible for
opening and closing any security gates and doors permitting access between the Premises
and the AOA.
B. Vehicles in AOA. No vehicles owned or operated by Lessee may operate within the
Movement or Non-Movement Areas of the AOA except those in compliance with TSA,
FAA, and Airport regulations. See site plan illustrating said AOA, attached and incorporated
as Exhibit C.
C. Airport Certification. Lessee must comply with rules that are applicable to its
operations on the Airport under the Airport Certification Rules of the Federal Aviation
Regulations ("F.<1R"), Part 139, as amended [ 14 CFR Part 139, as amended]. Copies of the
FAR are available in the office of Aviation Director.
D. Airport Security. Lessee, its officers, employees, invitees, agents, contractors, and
guests must comply with all federal and local Airport Security Regulations adopted by City
pursuant to 14 CFR Part 107, as the same may be amended. Lessee covenants to indemnify
and hold harmless City, its o~cers and employees from any charges, fines, or penalties
that may be assessed or levied by the FAA or TSA by reason of the negligent or intentional
failure of Lessee, its of£cers, employees, invitees, agents, contractors, or guests to
comply with Airport Security Regulations, regardless of whether Lessee, City, or Airport has
said fine, charge, or penalty levied against it.
E. 14 CFR Part 77 Requirements. Lessee covenants t~ comply with the notification
and review requirements set out in Part 77 of the Federal Aviation Regulations [14 CFR Part
77], as arnended, if Lessee plans to construct or modify any present or current structure,
antenna, or building located on the Premises. Copies of the FAR are available in the office
of Aviation Director.
F. Control of Structures. Lessee shall not erect nor permit the erection of any
structure, equipment, antenna, or building, nor permit the growth of any tree on the Premises,
8
which has its highest point above a mean sea level elevation established by FAA and City as
a height limitation on said structure, equipment, antenna, building, or object. City may enter
the Premises and remove any such structure, antenna, building, or object at Lessee's expense
plus 20% overhead. Subject to Aviation Director's prior written approval as to height and
(ocation, which will not be unreasonably withheld; Lessee may furnish and install at its own
expense, a radio antenna either adjacent to the Improvements or on the roof of the
[mprovements on the Premises subject to (a) any and all zoning and other regulatory and
federal laws, ordinances, statutes, rules, regulations and order applicable thereto, (b) Lessee
obtaining any and all building and other permits, licenses and other approvals with respect
thereto, (c) the antenna and building both must be structurally sound and not adversely effect
the soundness of, or the condition of, the roof and/or other parts of the building; and (d) any
and all costs of maintaining and operating the same must be paid entirely be Lessee.
G. Aerial Approaches. City Manager may take any action necessary to protect the
Airport's aerial approaches against obstruction, including the right to prevent Lessee from
operating, erecting or permitting to be erected, any building, equipment, or structure on or
adjacent to the Airport, which in Aviation Director's opinion, would limit the usefulness of
the Airport or constitute a hazard to aircratt. Lessee and its successors and assigns, will not
make or permit any use of the Premises which would interfere with landing or taking off of
aireraft at the Airport, or otherwise constitute an airport hazard, including but not limited to
electrical or electronic interference with communications, electrical, or electronic equipment,
creation of smoke or dust or glaring or misleading lights.
H. Right to Overflight. City hereby reserves, for the use and benefit of the public, a
right of flight for the passage of aircraft above the surface of the Premises together with the
right to cause in the airspace, noise as may be inherent in the operation of aircraft, now
known or hereafter used for navigation thereof or flight in the air, using the airspace for
ianding at, or taking off from, or operating on, the Airport.
12. Hazardous Substances. Lessee covenants to comply with all environmental laws, rules,
regulations, orders and permits applicable to Lessee's operations on or in the vicinity of the Airport,
including but not limited to, required National Pollutant Discharge Elimination System Permits and
all applicable laws relating to the use, storage, generation, treatment, transportation, ar disposal of
hazardous or regulated substances. E.xcept for the Hazardous Substances governed by and
transported in full compliance wrth the transportation laws of the state or federal government.
Lessee must not use, store, generate, treat, transport, or dispose of any hazardous or regulated
substances or waste on or near the Airport without Aviation Director's prior written approval and
v~~ithout first obtaining all required permits and approvals from all authorities having jurisdiction
over Lessee's operations on or near the Airport.
lf Lessee determines that a threat to the environment, including but not limited to a release,
discharge, spill or deposit of a hazardous ar regulated substance, has occurred or is occurring which
affects or threatens to affect the Airport, or the persons, structures, equipment, or other property
thereon, Lessee must notify immediately by verbal report in person or by telephone, to be promptly
confirmed in writing, (1 j the Director, (2) the Airport's Public Safery Office, and (3) Emergency
response centers and environmental or regulatory agencies, as required by law or regulation, and
rnust follow such verbal report with written report as required by law. Lessee agrees to cooperate
fully with the Airport in promptly responding to, reporting, and remedying a threat to the
environment, including, without limitation, a release or threat of release of hazardous or regulated
substance into the drainage systems, soils, ground water, waters, or atmosphere, in accordance with
applicable law or as authorized or approved by any federal, state, or local agency having authority
over environmental matters.
Lessee must keep a readily accessible tile of Materials Safety Data Sheets for each
Hazardous Substance on site or transported to the Premises, in accordance with federal and state
transportation laws, which file must be posted and immediately available to any Airport or City
employee who responds to the scene (Premises) in the event of a dischazge of a Hazardous
Substance. Lessee's employees must try to determine which hazardous substance was discharged
and have that MSDS sheet available for the first responders to the scene.
Lessee must promptly undertake all required remediation and pay all costs associated with
Lessee's action or inaction that directly or indirectly prevents the Airport from materially
conforming to all then applicable environmental laws, rules, regulations, orders, or permits. The
rig~tts and obligations set forth this Section survive termination of this Lease.
13, Nondiscrimination/Affirmative Action.
A. Nondiscrimination - general. Lessee for itself, its personal representatives,
successors in interest, and assigns, as a part of the consideration hereof, covenants that: (1)
no person on the grounds of race, creed, color, religion, sex, age, national origin, handicap,
or political belief or affiliation will be excluded from participation in, denied the benefits of,
or otherwise be subjected to discrimination in the use ofthe Premises; (2) in the construction
of any improvements on, over, or under the Premises and the furnishing of services thereon,
no person on the grounds of race, color, religion, sex, age, national origin, handicap, or
political belief or affiliation will be excluded from participation in, denied the benefits of, or
otherwise be subject to discrimination.
B. Nondiscrimination-Business Owner. This Lease is subject to the requirements of
the U.S. Department of Transportation's regulations, 49 CFR Part 23. Lessee agrees that it
will not discriminate against any business owner because of the owner's race, color, national
origin, or sex in connection with the award of perfortnance or any concession agreement,
management contract or subcontract, purchase ar lease agreement, or other agreement
cavered by 49 CFR Part 23.
C. Remedy for Breach. If I,essee breaches a non-discrimination covenant, City may
immediately reenter the Premises; and the Premises and all Lessee's interest therein reverts
to City and its assigns. This provision is not effective until the procedures of Title 49, Code
of Federal Regulations, Part 21 are completed, including exercise or expiration of appeal
rights.
D. Affirmative Action. Lessee assures that it will undertake an affirmative action
program as required by 14 CFR Part 152, Subpart E, to insure that no person on the grounds
of race, creed, color, religion, sex, age, national origin, handicap, or political belief or
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affiliation is excluded from participating in any employment activities covered in 14 CFR
Part 152, Subpart E. Lessee assures that no person will be excluded on these grounds from
participating in or receiving the services or benefits of any program or activity covered by
that Subpart. Lessee further agrees to require its covered sub-organizations to provide
similar assurances to Lessee to undertake affirmative action programs and to require
assurances from their sub-organizations, as required by 14 CFR Part 152, Subpart E. Lessee
at its expense will comply with any applicable requirements of the Americans with
Disabilities (ADA ) as it may be amended.
14. Compliance with Laws.
:~. General. Lessee must promptly observe, comply with, and execute the provisions of
any and all present and future governmental laws, ordinances, rules, regulations,
requirements, orders and directions applicable to Lessee's use and occupancy of the
Premises. Failure to observe or comply with the aforementioned laws will subject this Lease
to cancellation by City under Section 17 of the Lease.
B. Federal. Lessee covenants to comply with all applicable Federal laws, rules, and
regulations, including without limitation the Drug Free Workplace Act, the Violence in the
Workplace Act, the Americans with Disabilities Act, and any other acts that the U.S.
C'ongress passes that apply to any entity that operates at the Airport.
C. State. Lessee covenants to comply with all applicable state laws, rules, and
regulations.
D. Local. Lessee covenants to comply with all applicable City ordinances, and rules
and regulations promulgated by Aviation Director.
I5. Caacellation - Termination.
A. Cancellation by Lessee. Without limiting any other rights and remedies to which
Lessee may be entitled by ~ommon law, statutory law, or as elsewhere provided in this
Lease, this Lease may be canceled by Lessee at any time after the happening, and during the
existence, of one of rnore of the following events:
The permanent abandonment of the Airport;
2. The lawful assumption by the United States Government, or any auth~rized
agency thereof, of the operation, control, or use of the Airport, or any substantial part
or parts thereof, that substantially restricts Lessee from operating for at least 150
days;
3. The issuance by any court of competent jurisdiction of an injunction that
prevents or restrains the use of the Airport, that continues far at least 90 days; or
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4. The default by the Airport in the performance of any covenant and the failure
of the Airport to remedy the default for 60 days after receipt from Lessee of written
notice to remedy the same.
B. Termination by City. Without limiting any other rights and remedies to which City
may be entitled at common law, statutory law, or as elsewhere provided in this Lease, this
Lease may be terminated by City if Lessee;
l. Is in arrears in paying a part of the rent, fees, or charge for ten (10) business
days ("business" days are Monday through Friday),or other time as may be provided
herein.
? Makes a general assignment for the benefit of creditors;
Abandons the Premises or any part thereof;
4. Otherwise defaults in the performance of any of Lessee's covenants, and
continues the defau(t for 30 days, or other time as may be provided herein, after
receipt of written notice from Aviation Director of the default. If the default cannot
reasonably be cured within 30 days or within any other time set out in the notice of
default, Lessee shall submit a plan to remedy the default to the Director for approval
within thirty (30) days from receipt of the notice. The Director shall have sole
discretion of the approval of the plan.
C`. City's Right to Entry Upon Termination. If City terminates this Lease or if Lessee
abandons the Premises, Citv may enter upon the Premises.
In the event of termination by City, Lessee hereby irrevocably appoints City Manager its
agent to remove any and all persons or property from the Premises and place any property in
storage for the account of and at the expense of Lessee. All property on the Premises is
hereby subjected to a contractual landlord's lien to secure payment of delinquent rent
and other sums due and unpaid under this Lease, any and all exemption laws are
hereby expressly waived in favor of said landlord's lien; and it is agreed that said
landlord's lien is not a waiver of any statutory or other lien given or which may be
given to Citv but is in addition thereto.
Lessee agrees, that in the case of a default, if Lessee fails to remove any property on the
Premises within thirty days following the default, City Manager may sell Lessee's property
found on the Premises at a public or private sale with proceeds of the sale applied first to the
eost of the sale, then to the cost of storage of the property, if any, and then to the
indebtedness of Lessee, with the surplus, if any, to be mailed to Lessee at the address herein
designated. If City terminates and reenters the Premises, City may relet the Premises and if a
sufficient sum is not realized. after paying expenses of the reletting, to pay the rent and other
sums agreed to be paid by Lessee, Lessee agrees to pay any deficiency within 30 days of
~~~iation Director's written demand therefor. Lessee further agrees to hold harmless
from, and indemnify City including its officers, agents, and employees against, any loss
or damage or claim arising out of City's action in collecting monies owed to it under
12
tlus paragraph, except for any loss, damage, or claim caused by the negligence or
w~tbful misconduct of City or its employees.
D. 1~lotice of Termination. If an event of default occurs, and after due notice
~dentifying the default, the defaulting party has failed to cure, the complaining party may at
any time after the expiration of any cure period terminate this Lease by providing written
notice of termination. The Lease will be terminated on the date specified in the notice but
not sooner than five (5) business days after the postmarked date of the notice. Rental
payments are payable only to the date of termination. This Subsection is subject to the
requirements set out in Subsection B of this Section.
E. Partial Destruction. If the Premises, Lessee's Improvements, or the Airport
facilities reasonably necessary to operate Lessee's business are partially damaged - due to
acts of God or other acts outside the control of Lessee or City - to the extent that Lessee
cannot use the Premises for purposes as defined in Section 4 of this Lease, then, at Lessee's
option, this Lease may be terminated or instead may be suspended until the damage is
repaired. If the Lease is suspended, Lessee and City will mutually agree on a time period for
Lessee to repair the damages to the Premises or Improvements. If the Lease is terminated, as
provided for herein, the rent will be abated from the date of the casualty provided; however,
that Lessee must use its insurance proceeds to either replace the Improvements or remove all
trace of the Improvements and return the Premises back to a state of raw land. All remaining
insurance proceeds will be paid to Lessee. City Manager is the sole judge of the extent of
damage to the Airport and the Premises.
16. Property Rights upon ExpiraNon or Termination.
A. Removal of Equipment. Upon termination or expiration of this Lease, Lessee may
remove all removable furniture, fixtures, antenna(s), and equipment installed by Lessee, so
long as Lessee removes same within 30 calendar days after termination or expiration of the
Lease. Any damage to the Premises caused by Lessee's removal of its property must be
repaired by Lessee within 15 business days after such removal at Lessee's expense, and to
the satisfaction of .Aviation Director.
Notwithstanding the foregoing, if' Lessee fails to remove its removable furniture, fixtures,
antenna(s), and equipment within 30 days from the date of termination or expiration of this
Lease, then City Manager, may at his or her option, take title to the said personalty and sell,
lease or salvage the same, as permitted by law. Any net expense City Manager incurs on
behalf of City in disposing of the personalty must be paid by Lessee within 10 days of City
Manager's written demand thereof. City Manager will provide Lessee with a written
itemized breakdown of the costs recaphzred, if any, by the sale, lease or salvage of the
property, and the balance due, which must be paid by Lessee upon receipt of said itemized
breakdown.
B. New Lease - Do Not Remove Equipment. If City and Lessee negotiate a new
Lease after the expiration or termination of this Lease, Lessee does not have to remove its
furniture, fixtures and equipment from the Premises.
13
C. Improvements Revert to City. Except for Lessee's personal property and subject to
Section 9, at the expiration of the Lease, al l permanent improvements placed or constructed
on the Premises by Lessee revert to City.
D. Holdover, Any holding over by Lessee of the Premises after the expiration or other
termination of this Lease will be on a month-to-month tenancy at sufferance, at the then
~urrent monthly rental rate, and Lessee agrees to surrender the Premises upon 30 days
written notice. Failure to timely surrender Premises following notice subjects Lessee to a
monthly holdover fee of the then current monthly rental rate for each month of delay, in
addition to payment of rent.
17. Re-delivery of Premises. Upon expiration or termination of this Lease, Lessee must deliver
the Premises to City peaceably, quietly and in as good condition as the same now are or may be
hereafter improved by Lessee or City, normal use and wear thereof and damage by casualty (which
damage Lessee zs not required to repair or restore - subject to the provisions of Section 15.E)
excepted. In addition to a(andlord's lien provided by the law of the State of Texas, the Airport has a
contractuai lien on all property of Lessee on the Premises as security for nonpayment of rent.
18. Lessee's Maintenance Obligations.
A. Premise. Lessee must maintain the Premises in good appearance and repair, and in a
safe condition at its expense. Lessee must maintain, repair, replace, paint, or otherwise
finish all leasehold improvements on the Premises (including, without limitation, walls,
partitions, floors, ceilings, windows, doors, and glass, and all furnishings, fixtures, and
equipment therein). All of the maintenance, repairs, finishing and replacements must be of
quality at least equal to the original in materials and workmanship. Lessee must, as much as
practicable, ensure that the Premises are maintained free of foreign object debris (FOD).
B. Quality of Maintenance. It is the intent of Aviation Director and Lessee that the
Improvements will be maintained in a manner that shall keep the Improvements intact, in
good repair, and in a condition where they will be usable at the end of the Lease. Lessee
must comply with the maintenance obligations of Sections 10 and 18 and with all-applicable
governmental laws, rules, or regulations. Aviation Director is the sole judge ofthe quality of
Lessee's maintenance, which must be reasonable and consistent with other Airport
properties_ qviation Director may at any time, during City's normal business hours, without
prior notice, enter upon the Premises to determine if Lessee is fulfilling the maintenance
requirements of this Lease. ;~viation Director must notify Lessee in writing of any default.
If the required maintenance in Aviation Director's notice to Lessee is not commenced by
Lessee within l 5 business days after receipt of written notice, or is not diligently prosecuted
ro completion, Aviation Director may enter upon the Premises and perform the subject
~naintenance, and Lessee agrees to reimburse the Airport for its cost plus 20% overhead
within 30 days after Aviation Director's written demand therefor, together with copies ofall
bids for the repairs and maintenance.
C. Correct Hazards. Lessee must immediately correct any hazardous or potentially
hazardous condition on the Premises upon knowledge thereof, or after receipt of notice from
14
Aviation Director. At Aviation Director's discretion, Lessee must close the Premises, or
affected portion, until the hazardous or potentially hazardous condition is removed or
canected. Nothing herein may be deemed to impose any obligation on City's part to identify
hazards on Premises or to order closing of Premises.
D. Preexisting Conditions. Notwithstanding anything else to the contrary in the
Agreement, Lessee is not responsible for any environmental contamination occurring
prior to execution of this Lease.
19, City Obligations.
:~. To operate Corpus Christi International Airport as a public airport during this Lease
subject to the assurances given by City to the United States Government under the Federal
Airport Act.
B. To make water, gas and wastewater service available to the property lease line on the
same basis as it is made available to all business operating at the Airport. Lessee must pay in
full all utility usage charges for water; gas, wastewater, electricity and other utilities supplied
to Lessee or Lessee's Premises during the Lease as the charges become due and payable.
20. Indemnification.
A. GENERAL - Lessee must indemnify, hold harmless, defend and insure the City
of Corpus Christi, its officers, agents, and employees from and against any and all
ctatms and causes of action, administrative proceedings, judgments, penalties, fines,
da~iages, losses, demands, liabilities, or expenses whatsoever (including reasonable
attt~t~ney's fees and costs of litigation, mediation and/or administrative proceedings)
whlch mav be bronght, alleged, or imposed against the City, its officers, agents, or
ettt~tloyees arising directly or indirectly from or in any way connected with (i) any
property damaged or loss, personal injury, including death, or adverse effect on the
environment arising out of Lessee's action or inaction with regard to the operaNons of
Lessee hereunder, including the use or occupancy of the Premises, or in providing
access to secured areas of the Airport as set out herein, excepting only that liability as
may result from the gross negligence or the willful misconduct of the City, including its
offf~eers, agents, and employees; (ii) the failure of Lessee, its agents or employees, to
co~ply with the terms and conditions of this Lease, or to comply with any applicable
federal, state, or local laws, rules, regulations, or orders inctuding, but not limited to,
any and all applicabie federal, state, or local environmental laws, rules, regulations, or
orders; or (iii) release of any hazardous or regulated substances or waste onto, into, or
from the Premises or other Airport property, connected in any way with Lessee's
operations or the action or inaction of Lessee, its agents or employees, regardless of
whether the act, omission, event, or circumstance constituted a violation of applicable
law at the time of the occurrence. The rights and obligations set forth in this
Paragraph shall survive the termination of this Lease.
B, SPECIAL CLAIMS - Lessee agrees to defend, at its own cost, and to protect,
15
indemnify, and otherwise hold harmless, the City, including its officers, agents, and
eatployees (including but not restricted to the posNng of bond and release of
at#achment) from and against any and all claims in any way arising out of or in
cannection with the construction, repair, or maintenance work undertaken hereunder
by, through or on behalf of Lessee, including but not restricted to attachments, liens or
levies, and whether or not the claim is meritorious, made, failed or asserted by any
party other than Lessee against the City, including its officers, agents, and employees
or the Premises or Improvements thereon or part thereof, or monies owing to the
.~irport.
C. NOT1CE - Notwithstanding the above identifications, Lessee must give Aviation
~irector notice of any matter covered hereby and forward to Aviation Directar copies of
every demand, notice, summons, or other process received in any claim or legal proceeding
~:overed hereby within 1(- working days of Lessee's receipt of said notice, demand,
summons, or other process
D. INDEMNITY WAIVER-Lessee, ifa charitable association, corporation, entity, or
individual enterprise having or claiming an immunity or exemption (statutory or otherwise)
from and against liability for damage or injury to property or persons, hereby expressly
waives its right to plead defensively the immunity or exemption as against City, including its
officers, agents, or employees, as the case may be.
21. lnsurance. Lessee must provide insurance in the amounts and types of coverages required
by the City's Risk Manager ("Risk Manager"), a copy of which is attached and incorporated as
Ex~tbit D. Lessee's insurance company must provide Aviation Director and Risk Manager
certificate(s) of insurance 30 days prior to the annual anniversary date of the Effective Date of the
Lease, which shows the level and type of insurance. Lessee's insurance company must provide
Aviation Director 30 days written notice, by certified mail, prior to cancellation, non-renewal, ar
material change in the insurance policy (ies).
Risk Manager may annually assess the level and types of insurance required by the Lease.
Risk Manager can increase or decrease the level or types of insurance by giving Lessee notice no
less than 60 days prior to the annual anniversary date of the Effective Date of the Lease. Lessee has
30 days to procure the changed insurance and provide written proof of insurance to Aviation
Dire~tor.
All insurance required by this Lease must be primary insurance and not in excess of or
4ontributing with other insurance which Lessee may carry. All policies must name City as an
additional insured or loss payee. Lessee's insurance policies, as required by this Lease, must apply
;eparately to City as if separate policies had been issued to Lessee and City.
The amounts of all required insurance policies must not be deemed a limitation of Lessee's
~ovenant to indemnify City, and if Lessee or City becomes liable in an amount in excess of the
amount(s) of said policies, then Lessee must indemnify City from the whole thereof, except in the
event of grossly negligent or willful misconduct on the part of City, its officers, or employees.
16
22. Notice. Notices are sufficient if in writing and sent by certified mail, return receipt
requested, postage prepaid, or by overnight delivery service as addressed below:
[f to City: If to Lessee:
Aviation Director Chet Rasberry
Corpus Christi International Airport 17177 Navajo Rd
1000 International Drive Apple Valley, Ca 92307
Corpus Christi, Texas 78406
Or to any other address that may be designated in writing from time to time.
23. GENERAL PROVISION.
A. Mineral Rights. C'ity expressly reserves all water, gas, oil and mineral rights in and
under the soil beneath the Premises.
B. No Waiver of Forfeiture. Any failure or neglect of City Manager or Lessee at any
time to declare a forfeiture of this Lease for any breach or default whatsoever hereunder does
not waive City'~ or Lessee's right thereafter to declare a forfeiture for like or other or
succeeding breach or default.
C. Force Majeure. l~Teither City nor Lessee will be deemed to be in breach of this
Lease if either is prevented from performing any of its obligations hereunder by reason of
Force Majeure. Force Majeure means any prevention, delay, or stoppage due to strikes,
lockouts, labor disputes, acts of God, including inclement weather and/or periods of rain or
snow, inability to obtain labar or materials, or reasonable substitutes therefore, governmental
restrictions or requirements, governmental regulations, governmental controls, inability to
timely obtain governmental approvals, enemy or hostile governmental action, civil
commotion, fire or other casualty, and other causes beyond the reasonable control of the
party obligated to perform. All of the foregoing events excuse the performance by either
party for a period equal to any prevention, delay, or stoppage, including the obligations
imposed with regard to commencement or payment of rental and other charges to be paid by
Lessee pursuant to this Lease and the obligation of City to deliver the Premises.
D. Quiet Enjoyment. City covenants that it has the authority to execute this Lease, that
at commencement of the Lease, City has good title to the Premises and that throughout the
term hereof, Lessee will have peaceful and uninterrupted possession of the Premises subject
to its payment of'rentals and other charges and to its performance of the covenants of this
Lease. City agrees to remedy any violation of quiet enjoyment caused by City or one of the
other Airport tenants.
E. Rules and Regulations. Aviation Director may adopt and enforce rules and
regulations to be uniformly applied to similar uses and users of similar space, which Lessee
agrees to observe and obey with respect to the use of the Premises and the Airport, and the
health, safety and welfare of those using the Premises and the Airport.
17
F. Headings. The titles and headings in this Lease are used only for reference, and in
no way define or limit the scope or intent of a provision of the Lease.
G. Venue. Venue of any action brought under this Lease lies in Nueces County, Texas,
exclusively, where the Lease was executed and will be performed.
H. Successors and Assigns. Subject to the limitations upon assignment and transfer
herein contained, this Lease binds and inures to the benefit of the parties hereto, their
respective successors and assigns.
1, No Third Party Benefit. No provision of this Lease creates a third party claim
against the City of Corpus Christi, the Airport, or Lessee, beyond that which may legally
exist in the absence of any such provision.
J. Taxes and Licenses. Lessee must pay all taxes of whatever character, including ad
~ alorem and intangible taxes, that may be levied or charged upon the Premises, leasehold
improvements, or operations hereunder and upon Lessee's rights to use the Premises,
«~hether the taxes are assessed against Lessee or City, prior to the past due date. Lessee must
pay any and all sales taxes arising in connection with its occupancy or use of the Premises
whether the taxes are assessed against Lessee or City. Lessee must obtain and pay for all
I~censes or permits necessary or required by law for the construction of Improvements, the
installation of equipment and furnishings, and any other licenses necessary for the conduct of
its operations hereunder. If Lessee wishes to contest any tax or charge, that contest will not
be a default under the Lease so long as Lessee diligently prosecutes the contest to conclusion
a~id promptly pays whatever tax is ultimately owed. Further, Lessee must pay any taxes not
being contested prior to the past due date.
K. Trash and Refuse. Lessee must anange for the collection and lawful disposal of all
trash and other refuse resulting from its operation on the Premises. Lessee must provide and
use suitable sealed fireproof receptacles approved by Aviation Director for all trash and
other refuse generated by Lessee's use of the Premises within Lessee's leased area. Piling of
boxes, barrels or other simitar items in or within view from a public area is not permitted.
Lessee must comply with all applicable laws and regulations relative to trash disposal and
Lessee must pay the costs associated with trash removal and disposal.
L. Terms Binding on Successors and Assigns. 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 Lessee and City.
M. Estoppel. Both parties agree that at any time and from time to time at reasonable
intervals, within fifteen (15) days after written request by the other party, said party will
execute, acknowledge and deliver to the party designated by the other party, a certificate in a
form as may from time to time be provided, certifying the following, as well as any other
provision reasonably requested by the other party: (a) that Lessee has entered into
~ccupancy of the Premises and the date of said entry if requested; (b) that this Lease is in full
force and effect, and has not been assigned, modified, supplemented or amended in any way
~ or if there has been any assignment, modification, supplement or amendment, identifying
18
the same); (c) that this Lease represents the entire agreement between City and Lessee as to
the subject matter hereof (or if there has been any assignment, modification, supplement or
arnendment, identifying the same); (d) the date of commencement and expiration of the term;
(e) that all conditions under this Lease to be performed by City, if any, have been satisfied
(and if not, what conditions remain unperformed); ( fl that to the knowledge of the signor of
~aid writing, no default exists in the perforrnance or observance of any covenant or condition
m this Lease and there are no then existing defense or offsets against the enforcement of this
Lease by City, or instead specifying each default, defense or offset of which the signor may
have knowledge; and (g) the amount of rent or other rental, if any, that has been paid in
advance and the amount of security, if any, that has been deposited with City.
ti. Leasehold Mortgage. As used herein, "Leasehold Mortgage" means the mortgage
or deed of trust covering Lessee's leasehold interest in this Lease given by Lessee to
Leasehold Mortgagee to secure repayment of funds advanced or to be advanced by a
Leasehold Mortgagee to Lessee to construct facilities on the Premises (the "ProjecY'). As
used herein, "Leasehold Mortgagee" means the mortgagee or beneficiary under the
Leasehold Mortgage. As used herein, "mortgage" means any mortgage, deed of trust or
Uther indenture consisting of a lien on Lessee's leasehold interest created hereunder, together
with a promissory note or obligation or bond which it secures. Subject to the conditions set
forth herein, Lessee may ~nortgage its leasehold interest created hereunder, solely for the
purpose of (1) obtaining financing to make improvements to the Premises, including any
additional construction or alteration thereof made subsequent to the initial constructi~n, (2)
refinancing said construction mortgage, and (3) providing financing in connection with the
assignment or transfer by Lessee of its interest in this Lease and its leasehold interest created
hereunder, provided, however; that with respect to the financing described in clauses (2) and
( 3) above, the principal amount of any mortgage must not be greater than the original
principal amount of the mortgage obtained to make improvements to the Premises, including
any additional construction or alteration thereof made subsequent to the initial construction
as provided:
l. Said mortgage in no way affects or diminishes City's interest in the Premises,
or its rights under this Lease, nor relieves Lessee of any of its obligations hereunder;
2. Under no circumstances is City's leasehold interest in the Premises
subordinate to said mortgage;
3. Said mortgage covers no interests in any real property other than Lessee's
Ieasehold interest in the Premises hereunder; and
4. The making of said mortgage by Lessee will not be deemed to constitute an
assignment or transfer of this Lease, nor will any mortgagee be deemed an assignee or
transferee of this Lease.
Rights of Leasehold Mortgagees.
19
a. No Leasehold Mortgage is binding upon City in the enforcement of its
rights and remedies under this Lease unless and until a copy thereof has been
delivered to Aviation Directar.
b. City Manager agrees to execute an estoppel certificate and any other
similar documentation as may reasonably be required by Leasehold Mortgagee so as
~o certify to the status of this Lease and to the performance of Lessee hereunder as of
the date of said certification.
c. Lessee shall furnish Aviation Director a written notice setting forth
the name and address of any Leasehold Mortgagee.
d.. If a Leasehold Mortgage or purchaser at foreclosure of the mortgage
acquires Lessee's leasehold interest in the Premises by virtue of the default of Lessee
under the mortgage or otherwise, this Lease will continue in full force and effect so
long as Leasehold Mortgagee or purchaser at foreclosure is not in default hereunder,
including the obligation to timely pay rent. For the period of time during which
Leasehold Mortgagee or any purchaser at foreclosure of a mortgage holds Lessee's
leasehold interest in the Premises, Leasehold Mortgagee or said purchaser becomes
liable and fully bound by the provisions of this Lease.
6. If City elects to terminate this Lease for any default by Lessee with respect to
the Premises, the Leasehold Mortgagee that has become entitled to notice as provided in this
Section has not only any and all rights of Lessee with respect to the curing of any default, but
also the right to postpone and extend the specified termination date of the Lease ("Leasehold
Mortgagee's Right to Postpone"), contained in any notice of termination by City to Lessee
t"Termination Notice"), for a maximum of 90 days, subject to the following conditions:
a. Leasehold Mortgagee must give Aviation Director written notice of
the exercise of Leasehold Mortgagee's Right to Postpone at least ten (10) days prior
to the date of termination specified by Aviation Director in the Termination Notice
and simultaneously pay to City all amounts required to cure all defaults then existing
{ as of the date of the exercise of Leasehold Mortgagee's Right to Postpone) which
may be cured by the payment of a sum of money.
b. If Leasehold Mortgagee's Right to Postpone is exercised, Leasehold
Mortgagee must pay any sums and charges which may be due and owing by Lessee
and promptly undertake to cure, diligently prosecute, and as soon as reasonably
possible, complete the cure of all defaults of Lessee with respect to the Premises
which are susceptible to being cured by Leasehold Mortgagee.
c. Leasehold Mortgagee's exercise of its Right to Postpone may extend
the date for the termination of this Lease specified in the Termination Notice for a
maximum of six (6} months.
d. If, before the date specified for the termination of this Lease as
extended by a Leasehold Mortgagee's exercise of its Right to Postpone, Leasehold
20
Mortgagee has performed and observed all of Lessee's covenants and conditions
under the Lease with respect to the Premises and no further defaults with respect to
the Premises have occurred which have not been timely cured, then all defaults under
this Lease, with respect to the Premises, will be deemed to have been cured and
City's Termination Notice will be deemed to have been withdrawn.
e Nothing herein may be deemed to impose any obligation on City's
part to deliver physical possession of the Premises to a Leasehold Mortgagee.
f. If more than one Leasehold Mortgagee seeks to exercise any of the
rights provided for in this Section 23 N, the most senior lien holder is entitled, as
against the others; to exercise said rights. Should a dispute arise among Leasehold
Mortgagees regarding the priority of lien, Leasehold Mortgagees must provide
e~~idence substantiating the correct priority of the competing liens to the satisfaction
ot the City Attorney prior to taking any action with respect to exercising said
lienholder rights.
Q. Terms Biading on Successors and Assigns. All of the terms, covenants and
agreements herein contained must be binding upon and inure to the benefit of the heirs,
successors and assigns of I,essee and Cit~~.
P. Publication Costs. All costs for publication of notice of this Lease required by the
City Charter must be paid by Lessee.
21
~
i;XECI ~ TE.D IN i)UPLI( 1"1 1- ORIGINAI.,S this ~~ _ day of ~,~ , 2006, by the
authe~rized representative of the partie~;
Attest: City of Corpus Christi
.~
( ~ -
- - - -___ _ _ _ ___ _- -
Armando Chapa Ge rge . Noe
City Secretar~ City Manager
Approved as to [.egal Form on ~,ZQ~_ "1 _, 2006
Bv:
Wendy E. Ogd ___
assistant Cit~ Attorne~
I~or Cit~~ !~ttorne~
L:EStiEE:
~
_ ~ /. ~ ~~~`L L1~Li~c" .... .
('het Rasberr-~" , ~
~..
Q~ ~. n2~~~ 1 AUTNORILt4
~,r ovuKC~~ «-I~~?~ --
c~- ~
S : ~` ~~
22
EXHIBIT A
PREMISES
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EXHIBIT B
IMPROVEMENTS
(if applicable)
24
EXHIBIT C
AIRCRAFT OPERATIONS AREA (AOA) SITE PLAN
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EXHIBIT D
INSURANCE REOUIREMENTS
1 Lessee Liabilitv Insurance
A. Lessee must not occupy the Premises or commence work under this agreement until all
insurance required herein is obtained and such insurance is approved by the City. Lessee
must not allow any subcontractor to commence work until all similar insurance required
of the subcontractor has been obtained.
B, Lessee must furnish to the City's Risk Manager, two (2) copies of Certificates of Insurance,
showing the following minirnum coverage by insurance company(s) acceptable to the City's
EZisk Manager. The City must be named as an additional insured for the General Liability
policy and a blanket waiver of subrogation is required on all applicable policies.
TYPE OF INSURANCE MINIMUM INSURANCE COVERAGE
3A-da,y written notice of cancellation, Bodily Injury and Property Damage
termination, non-renewal or material change Per occurrence / aggregate
is re ui~Ed on all certiticates
C~mmercial General I.iability $1,000,000 Combined Single Limit
i . Commercial Broad Forn;
?. Premises - Operations
3. Products; Completed Operations Hazard
~. Contractual Liability
~. Independent Contractor
6. Hroad Form Property Damage
7. PersonalIn'
Hangar Keepers Legal Liability to include $1,000,000 Combined Single Limit per
1. Direct Primary Liability occurrence
~ $3,000,000 Combined Single Limit
a re ate
Non-owged Aircraft Lia~ility to include $2,000,000 Combined Single Limit
Coverage for rotor and motor liability
(stationery and while in flight)
I
Starage Tank Liability Coverage to include $1,000,000 Combined Single Limit
Siuiden & accidental discharge and long-term
environmental impact for the disposal of
ca~taminsnts
A~tomc~e Liabitity to include coverage for $1,000,000 Combined Single Limit
owned, n~n-owned or rented vehicles
Workers' Compensation Which complies with the Texas Workers
; Compensation Act
Em lo ers Liabili $500,000
~ in [ne event oi accidents oi any kmd, Lessee must iurnish the Risk Manager with copies of
all reports within (10) ten days of any accident.
Il. AI)UITIONAL RFAUIREMENTS
26
WHEREAS, the City of Corpus Christi ("City") owns the Corpus Christi International
Airport ("Airport"), located in Nueces County, State of Texas;
WHEREAS, Chet Rasberry, a natural person ("Lessee") desires to lease a certain parcel of
fand at the Airport to operate a helicopter maintenance facility and helicopter charter operations.
WHEREAS, the parties wish to enter into a written lease for land ("Lease") which includes
building and hangar improvements and vehicle parking areas for the purpose of operating a
helicopter maintenance facility and helicopter charter operations;
NOW THEREFORE, in consideration ofthe mutual covenants contained herein, the Parties
agree as follows:
Agreement:
1. Premises City leases to Lessee the land located to the northeast side of the Airport
terminal building as more particularly described in the attached and incorporated Exhibit A
("Premises"). The Premises includes approximately 91,250 square feet of land, together with
improvements, easements, access for ingress and egress, and parking areas.
2. Term Subject to the rernaining terms and conditions hereof, the term ("Term") of
thi Lease is tyventy (20) years beginning upon the 61 S` day after final City Council approval which is
~- , 2006 ("Effective Date"), and terminating on the twentieth year anniversary
thereafter ("Termination Date"). If the Effective Date of this Lease is a day other than the first day
of a calendar month, then the Original Term of this Lease shall be deemed extended by the number
of days between the Effective Date of this Lease and the first day of the next calendar month
following the Effective Date of this Lease, so that the Original Term shall expire twenty (20) years
after said first day of the first calendar month following the Effective Date of this Lease.
3. Ground Rent.
A. Calculations.
The per annum rent for the Premises as shown on Exhibit A and hereafter as may be
amended, shall be calculated as follows:
i. Years 1 through 3 of the Lease: seventeen cents ($.17) per square foot.
i~. Years 4 through 6 of the Lease: nineteen cents ($.19) per square foot.
iii. Years 7 through 9 of the Lease: twenty-one cents ($.21) per square foot.
iv. Years 10 through 12 of the Lease: twenty-three cents ($.23) per square foot.
v. Years 13 through 15 of the Lease: twenty-five cents ($.25) per square foot.
2