HomeMy WebLinkAboutC2006-541 - 12/12/2006 - ApprovedGround Lease at Corpus Christi International Airport
Between City of Corpus Christi and
James Charles Bernsen
W HEREAS, the City of Corpus Christi ("City") owns the Corpus Christi International
Airport ("Airport"), located in Nueces County, State of Texas;
WHEREAS, James Charles Bernsen, ("Lessee") desires to lease a certain parcel of land
at the Airpart tor crop farming purposes;
W HEREAS, the parties wish to enter into a written lease for land ("Lease") which
includes approximately 244.12 acres of land for the purpose of crop fanning;
NOW THEREFORE, in consideration of the mutual covenants contained herein, the
Parties agree as follows:
Lease:
1. Premises Citv leases ta Lessee the land located on the northwest side of the Airport
property as more particularly described in the attached and incorporated Exhibit A("Premises").
The Premises includes approximately 244.12 acres of land, excluding a ten (10) foot easement
along the perimeter fence.
2. Term Subject to the remaining terms and conditions hereof, the term ("Term")
s L~e ~ e~~ ~er City Council approval and on the date of execution which is
~( yl ~ . 2006 ("Effective Date"), and terminates on December 31,
2007 ("Termination Date").
3. Ground Rent
A. Calculation. Lessee agrees to pay City Ei,g_htv Dollars and Zero Cents ~$80.00~ per
acre and is payable in full no later than 5:00 p.m. Central Time on the Wednesday
immediately subsequent to the date this Lease is approved by the Corpus Christi City
Council ("Council") as full rental payment for the term of the Lease. Lessee's rent shall
he calculated on 244.12 acres.
B. Pay~ng Rent. City will invoice Lessee at the rental rate provided above. Said rent is due
and payable in full in the form of a certified or cashier's check, no later than 5:00 p.m.
C:.entral Time on the Wednesday immediately subsequent to the date this Lease is
appmved by Coun~il. Said rent shall be delivered to the following address:
Corpus Christi International Airport
1000 International Drive
Corpus Christi Texas 78406
C. Age~nt. 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 crop farming and for
2006-541 `he express written consent of City Manager. Lessee must supply
12;12/06 1
Ord027063
Bernsen, James Charles
sc~r~~ice~ <m a fair. equal and nondiscriminatory basis to all users thereof. Lessee shali not
c~:mstruct any improvements on the Premises. I..essee shall not use the Premises for storage of
ec~uipm~::nt or supplies and shall remo~e equipment and supplies on the Premises that have not
b<;ers in ase for a period ot thirty (?t)) da_ys.
5. .~cceptance. By Lessee's execution of this Lease, Lessee acknowledges that Lessee has
read this lease and understands that this Lease is not binding on the City until properly
authorized by the C:ity Council and executed by the City Manager of the City of Corpus Christi,
Texas. I_essee also acknowledges that Lessee has inspected the Premises and accepts the
Premises in its present physical condition.
6. Assigument and Sublease. Lessee may not at any time assign, transfer, convey, sublet,
mortgage, pledge. or encumber its interest under this Lease, or any part of the Lessee's Leased
Premises, to any party 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,
hvpot~ecate or otherwise transfer this Lease, or any portion of Lessee's Leased Premises,
without the prior written consent of the CITY except as allowed for above, the CITY, in its sole
discretion may tertninate this Lease.
7. Right to Amend or Cancel Lease. 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 of the Premises until Lessee and City have
fully executed an amendment to this Lease that is mutually satisfactory to all parties for any
terms or conditions of this Lease affected by said actions.
C'ity reserves the rights to sell, use, or lease for a use different from the present use, all or
any of the Premises at anytime during the term of this Lease. If the Premises are used, ar leased
before the expiration date hereof and the purchaser or lessee is not willing to take the same
subject to this Lease and demands immediate possession, then LESSEE agrees to vacate and give
possession at anytime within fifteen (15) days after receipt of notice to vacate. If it becomes
necessary for LESSEE to vacate in case of a sale or lease, then the City shall pay LESSEE for
the land or portion thereof so vacated the following amounts, to-wit:
if the land has been plowed and prepared for a new crop, but before the crop has been
planted, the actual expense of working the acreage vacated, plus $10.00 per acre. If there is
growing crop, then the average return on an acreage basis that like crops bring on other land
cavered by this Lease, or if no other land covered by this Lease, then on similar land in the
immediate vicinity. Any payment~ so made shall be in proportion to the LESSEE's share of the
cr~p under this Lease, less harvesting costs.
8. Subordination 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 fiznds 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, then City shall at City's
expense make every effort to provide Lessee with land substantially similar to the Premises used
by Lessee for the remainder of the Original Term if like premises are available for the type of use
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granted within this Lease.
9 Repair, Maintenance, and UtiGties. Lessee, at its own expense, shall take good care of
the Premises, and, except during the ~,nowing season prior to harvest, shall keep the Premises
rr~o~ved at a height not to exceed 1' inches. Upon expiration of the Lease, Lessee shall return the
Premises in the same condition a> existed at initiation of the Lease, natural wear and tear and
damage from elements only exceptad.
I.essee will pay for any and all damages to any utility lines or equipment located on the
Premises which may be incurred hy Lessee's farming or agricultural operations or to replace all
such tines injured or destroyed as a result of Lease's agricultural operations. Lessee, at its own
expense, shall repair any and all damage caused to the Premises as a result of the willfizl or
negligent acts or omissions of Lessee. its employees or agents. Lessee shall pay for all utilities it
u,es at the Premises.
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.
10. Security Badges. Each of Lessee's employees needing access to a restricted area
(incliuiing 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. Aviation 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
atter an employee is terminated or loses a badge. Lessee and all Lessee personnel must comply
with all City and Federal security regulations and requirements.
11. .access to the Aircraft Operating Area ("AOA"). 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 shown on Exhibit C, 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
lim~t 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
Airport. T'SA and FAA laws, rules, regulations, and ordinances.
Lesaee further agrees to indemnify, hold harmless, defend and insure the City, its
officers, a~nts, and employees against the risk of legal liability for death, injury, or
dam~e to persons or property, direct or consequential, arising from entry of persons into
the A!OA where permitted, allowed or otherwise made possible by Lessee, its assignees and
their resp~tive contractors, suppliers of materials and furnishers of services, employees,
busiuess i~vitees, agents, or any person under the direction of Lessee in violation of City,
Airp~-t, TSA, and FAA laws, rules, regulations, or ordinances or Lessee's approved
procedures for controlling access to the AOA.
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e..essee must ~~btair, empioyee rdentification badges for all personnel authorized by LESSee
tc have access to the AO A in accc~rdance with the provisions of Federal Aviation Regulations,
4~>~°FR f'art 1542. and other laws, rules. regulations and ordinances.
(,e~see must pay all FAA and TSA fines associated with security breaches/infractions by
L~ssee' ~ agents, officers, business invitees, and employees in the AOA, regardless of whether
the tine is assessed to Citv, 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 Operadons 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 AUA/Premises must be cleared in accordance with Airport, TSA,
ar~d FA.A 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 ("FAR"), Part 139, as amended [ 14 CFR Part 139, as amended]. Copies of the FAR
are available in the office of Aviation Director.
D. Airport Seeurity. 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 l 542, as the same may be amended. Lessee covenants to indemnify and
hold harmless City, its ofticers 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,
it, officers, 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
le~~ied against it.
E. 14 CFR Part 77 Requirements. Lessee covenants to comply with the notification and
review requirements set out in Part 77 of the Federal Aviation Regulations [14 CFR Part 77], as
amended, if Lessee plans to use equipment in their operations that requires notification as
outlined in this regulation. Copies of the FAR are available in the office of Aviation Director.
F, Co~trol of Structures/Equipment. Lessee shall not operate any equipment which has
its highest point above a mean sea level elevation established by FAA and City as a height
limitation on said structure, antenna, building, or object/equipment. City may enter the Premises
and remove any such structure, antenna, building, or object at Lessee's expense plus 20%
o~~erhead.
G. Aerial Approaches. Gity Manager may take any action necessary to protect the
Airport's aerial approaches against obstruction, including the right to prevent Lessee from
operating any object or equipment on or adjacent to the Airport, which in Aviation Director's
opinion, would limit the usefulness of the Airport or constitute a hazard to aircraft. Lessee and
it5 successors and assigns, will not make or permit any use of the Premises which would interfere
with landing or taking off of aircraft at the Airport, or otherwise constitute an airport hazard,
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including but not limited to electncal or electronic interference with communications, electrical,
o~- electronic equipment, creation of smoke or dust or glaring or misleading lights.
H. Rig1~t to Overflight. CitS hereby reserves, for the use and benefit of the public, a right
of tlight 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 landing at, or
takin~ off~ from, or operating on, the Airport.
12. Hazardous Substances. l,essee 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 taws relating to the use, storage, generation, treatment, transportation,
or disposal of hazardous or regulated substances. Except for the Hazardous Substances governed
by and transported in full compliance with the transportation laws of the state ar 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 without first obtaining all required permits and approvals from all authorities
having jurisdiction over Lessee's ~perations on or near the Airport.
If Lessee determines that a threat to the environment, including but not limited to a
retease, discharge, spill c~r deposit of a hazardous or regulated substance, has occurred ar is
occurring which affects or threatens to affect the Airport, or the persons, structures, equipment,
o~ other property thereon, Lessee must notify immediately by verbal report in person or by
telephone. to be promptly confirmed in writing, (1) the Director, (2) the Airport's Public Safety
Office, and (3) Emergency response centers and environmental or regulatory agencies, as
rec~uired by law or regulation, and must follow such verbal report with written report as required
bv~ law. Lessee agrees to cooperate fully with the Airport in promptly responding to, reporting,
and remedying a threat tc~ the en~-ironment, including, without limitation, a release or threat of
release ot 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 file 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 discharge of a Hazardous
Substance. Lessee's employees must try to determine which hazardous substance was
drscharged 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
c~~nforming to all then applicable ~,Ynvironmental laws, rules, regulations, orders, ar permits. The
rights and obligations set forth this Section survive termination of this Lease.
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13. Noadiscrimination/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
gounds of race, creed, color, religion, sex, age, national origin, handicap, or political belief or
af'filiation will be excluded from participation in, denied the benefits of, or otherwise be
subjected to discrimination in the use of the Premises; (2) Lessee will use the Premises in
compliance with all other requirements imposed by or pursuant to 14 CFR Part 152, Subpart E
Non Discrimination in Airport Aid Program and Title VI of the Civil Rights Act of 1964 and 49
C~R, Subtitle A, Part 21, Nondiscrimination in Federally Assisted Programs of the Department
oi Transportation, and as said Title and Regulations may be amended, and with other applicable
state or federal laws or regulations. as amended.
B. !~Toncliscrimination-Business Owner. This Lease is subject to the requirements of the
L' 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 performance or any concession agreement, management
cc~ntr~t or subcontract, purchase or lease agreement, or other agreement covered by 49 CFR Part
2:~
C, Remedy for Breac6. If Lessee 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 ? 1 are cc~mpleted, 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, ar political belief or affiliation is
exciuded from participating in anv 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 hy 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. Cot~pliance with Laws.
A. Ge~ral. Lessee must promptly observe, comply with, and execute the provisions of any
and atl present and future governmental laws, ordinances, rules, regulations, requirements, orders
and directions applicable to Lessee's use and occupancy of the Premises. Failwe to observe or
comply with the aforementioned laws will subject this Lease to cancellation by City under
Section 1? ofthe Lease.
B. Federal. Lessee covenants ta comply with all applicable Federal laws, rules, and
regulations, including without limitation the Drug Free Workplace Act, the Violence in the
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V+~~`orkplace Act, th~ Americans with Disabilities Act, and any other acts that the U.S. Congress
p~isses that apply to any entity that operates at the Airport.
C'. State. Lessee covenants t~ comply with all applicable state laws, rules, and regulations.
D. I.ocal. Lessee covenants to comply with all applicable City ordinances, and rules and
regulations promulgated by Aviation Director.
15. Ca~+cellation - Termination.
A. Ca~cellation by Lessee. Without limiting any other rights and remedies to which Lessee
may be entitled by common 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
more of the following events:
The permanent abandonment of the Airport;
2. The lawful assumption by the United States Government, or any authorized 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 for at least 150 days; or
4. The default by the Airport in the performance of any covenant and the failure of the
Airport ta 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:
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.
2. Makes a general assignment for the benefit of creditors;
3. Abandons the Premises or any part thereof;
4. Otherwise defaults in the performance of any of Lessee's covenants, and continues
the default 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 ta remedy the default to the Director for approval within
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thirty 130) days from receipt of the notice. The Director shall have sole discretion of
the approval of~ the plar.
C. City's Right to Entry Upon Termination. If City terminates this Lease or if Lessee
aban~ns the Premises, City 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 persuns or property from the Premises and place any property in
storage for the account c~f and ar the expense of Lessee. All property on the Premises is
hereby sub~ected 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
expre~sly 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 City but is in
addit~n thereto.
Lessee agees, 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 cost
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
bv Lessee, Lessee agrees to pay any deficiency within 30 days of Aviation Director's written
demand therefor. Lessee further agrees to hold harmless from, and indemnify City
inclueling its officers, ageats, and employees against, any loss or damage or claim arising
out o# City's action in cotlecting monies owed to it under this paragraph, except for any
loss, damage, or claim caused by the negligence or willful misconduct of City or its
empl~yees.
D. Not~e of Terminadon. lf in the event default occurs, and after due notice identifying
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 Subsectian is subject to the requirements set out in Subsection B of this
Section.
16. Prcf~erty Rights upon Expiration or Termination.
A. Renoval of Equipment. Upon termination or expiration of this Lease, Lessee may
remove all et~uipment on the Premises 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 termination or
expir~tion of the Lease, at Lessee's expense, and to the satisfaction of Aviation Director.
Notwithstanding the foregoing, if Lessee fails to remove equipment within 30 days from
the date of termination or expiration of this Lease, then City Manager, may at his or her option,
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take title to the said personalty and sell, lease or salvage the same, as permitted by law. Any net
expense C'ity Manager incurs on behalf of City in disposing of the personalty must be paid by
Lessee within l0 days of City Manager's written demand thereof. City Manager will provide
Lessee wtth a written itemized breakdown of the costs recaptured, 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 hreakdown.
B. Holdover. Any holding over by Lessee of the Premises after the expiration or other
termiaation of this Lease will be c-n a month-to-month tenancy at sufferance, at the then current
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
ot the then current monthly rental rate for each month of delay, in addition to payment of rent.
1?. Re-deliverv 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 excepted. In addition
tc~ a landlord's lien provided by the law of the State of Texas, the Airport has a contractual lien
on all property of Lessee ~n the Premises as security for nonpayment of rent.
18. Lessee's Maintenance Obligations.
A. Pre~ise. Lessee must maintain the Premises in good appearance and repair, and in a
safe condition at its expense. Lessee must, as much as practicable, ensure that the Premises are
maint~ined free of foreign object debris (FOD) and shall control soil erosion on the Premises.
B. Qu~ity of Maintenance. Aviation Director is the sole judge of the quality of Lessee's
maintenance, which must be reasonable and consistent with other Airport properties. Aviation
Director may at any time, during C'ity's normal business hours, without prior notice, enter upon
the Premises to determine if Lessee is fulfilling the maintenance requirements of this Lease.
Aviation Director must nutify Lessee in writing of any default. If the required maintenance in
Aviation Director's notice to Lessee is not commenced by Lessee within 15 business days after
receipt of written notice, or is not diligently prosecuted to completion, Aviation Director may
enter upon the Premises and perform the subject maintenance, and Lessee agrees to reimburse
the Airport for its cost plus 20°~0 overhead within 30 days after Aviation Director's written
demand therefor. together with copies of all bids for the repairs and maintenance.
C, Correct Hazards. Lessee must immediately correct any hazardous ar potentially
hazardous condition on the Premises upon knowledge thereof, or after receipt of notice from
Aviation Director, whichever occurs sooner. At Aviation Director's discretion, Lessee must
close the Premises, or affected portion. until the hazardous or potentially hazardous condition is
removed <~r corrected.
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19. City Obligations.
To operate Corpus Christi International Airport as a public airport during this Lease
subject t~ tl~e assurances given h_y City to the United States Government under the Federal
Airport Act.
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 claims and
causes of action, administrative proceedings, judgments, penalties, fines, damages, losses,
demands, liabilities, or expenses whatsoever (including reasonable attorney's fees and costs of
litigation, mediation and/or administrative proceedings) which may be brought, alleged, or
imposec~ against the City; its officers, agents, or employees 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
operations of Lessee hereunder, including the use or occupancy of the Premises, or in providing
access to seeured 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 officers, agents, and
employees; (ii) the failure of Lessee, its agents or employees, to comply with the terms and
cc~nditions of this Lease, or to cc~mply with any applicable federal, state, or local laws, rules,
regulations, or orders including, but not limited to, any and all applicable federal, state, or local
environmental laws, rules, regulations. ~r orders; or (iii) release of any hazardous or regulated
substances or waste onto, into, or trom the Premises or other Airport property, connected in any
way with Lessee's operations or the action ar inaction of Lessee, its agents or employees,
regardles~ of whether the act, c~mission, event, or circumstance constituted a violation of
a~plicable 1aw at the time of the occurrence. The rights and obligations set forth in this
P~ragraph shall survive the termination of this Lease.
B. SPECIAL CLAIMS - Lessee agrees to defend, at its own cost, and to protect,
indernnify, and otherwise hold harmless, the City, including its officers, agents, and employees
(incl~uding but not restricted to the posting of bond and release of attachment) from and against
any and all claims in any way arising out of or in connection with the 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
bv any party other than Lessee against the City, including its officers, agents, and employees or
the Premises thereon or part therec~t; or monies owing to the Airport.
C. NOTICE - Notwithstanding the above identifications, Lessee must give Aviation
Direcior notice of any matter covered hereby and forward to Aviation Director copies of every
demand, notice, summons, or other process received in any claim or legal proceeding covered
hereby within 10 working days of Lessee's receipt of said notice, demand, summons, or other
process.
D. IN~EMNITY WAIVER - Lessee, if a charitable association, corporation, entity, or
individual enterprise having or claiming an immunity or exemption (statutory or otherwise) from
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and aga~nst liability for damage c~r injury to property or persons, hereby expressly waives its
right ta plead defensivelv the immunity or exemption as against City, including its officers,
agents, ~~r employees, as the case may be.
21. Insurance. 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 Exhibit B. Lessee's insurance company must provide Aviation Director and
Risk Manager certificate(s} of in5urance 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
c<~mpany must prc~vide Aviation Director 30 days written notice, by certified mail, prior to
cancellation, non-renewal. or material change in the insurance policy(ies).
Risk Manager will annuallv 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
Director.
~all insurance required by this Lease must be primary insurance and not in excess of or
contributing 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 separately 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 covenant 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 grossl_y negligent or willful misconduct on the part of City, its
officers, or employees.
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:
~viation Director James Charles Bernsen
Corpus Christi International Airport 4512 FM 1889
1000 International Drive Robstown, Texas 78380
Corpus Christi, Texas 78406
Or to any other address that may be designated in writing from time to time.
23. GENERAL PROVISION.
A. Mi~ral Rights. City expressly reserves all water, gas, oil and mineral rights in and
under the soil beneath the Premises.
11
B. No Waiver of Forfeiture. Any failure or neglect of City Manager or Lessee at any time
to declare a forfeiture of this Lease tor any breach or default whatsoever hereunder does not
waive C'ity's or Lessee's right thereafter to declare a forfeiture for like or other or succeeding
breach i~r default.
C. Foree Majeure. Neither 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.
F~~rce 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 labor
or materials, or reasonable substitutes therefore, governmental restrictions or requirements,
gc~vernmental 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
fclregoing 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 payrnent
01~ 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, Citv 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 af rentals and other charges and to its performance of the covenants of this Lease. City
agrees to rernedy any violation ot quiet enjoyment caused by City or one of the other Airport
tenants.
E. Rul+es 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.
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 ot 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, t:~is Lease binds and inures to the benefit of the parties hereto, their respective heirs,
successors, and assigns.
I. No Third Party Benefit. No provision of this Lease creates a third party claim against
the City af 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 taYes of whatever character, including ad
valorem and intangible taxes, that may be levied or charged upon the Premises or operations
12
hereunder and upon Lessee's rights to use the Premises, whether the t~es are assessed against
Lessee or City, pnor to the past ~ue date. Lessee must pay any and all sales taxes arising in
c<~nnect~on with its occupancy or use of the Premises whether the taxes are assessed against
Lesse~ or City. Lessee must obta~n and pay for all licenses or permits necessary or required by
law for the installation of equipment, and any other licenses necessary for the conduct of its
operations hereunder. If Lessee ~~ishes 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 and
promptly pays whatever tax is ultimately owed. Further, Lessee must pay any taxes not being
c~~ntested prior to the past dUe date.
K. Trash and Refuse. Lessee must arrange for the collection and lawful disposal of all
trash and other refuse resulting from its operation on the Premises. Lessee must provide and use
suitahle 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 similar items in or within v~ew 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 remc~val and dispasal.
L. Estoppel. Both parties agree that at any time and from time to time at reasonable
intervals, within fifteen (l 5) 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
reasonablv requested by the other party: (a) that Lessee has entered into occupancy of the
Premises and the date of said entr~~ 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 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 amendment, identifying the same);
(d ) the date of commencement ancl expiration of the term; (e) that all conditions under this Lease
tc be performed l~y Cit~~, if anv. have been satisfied (and if not, what conditions remain
u~iperfarnled); (t) that to the knowledge of the signor of said writing, no default exists in the
performance or observance of an~ covenant or condition in this Lease and there are no then
existing defense or offset~ against the enforcement of this Lease by City, or instead specifying
ench default, defense or c~ffset of which the signor may have knowledge; and (g) the amount of
rent or cather rental, if any, that has been paid in advance and the amount of security, if any, that
has been deposited with City.
M. Pubiieation Costs. All costs f~~r publication of notice of this Lease required by the City
Charter must be paid by Lessee.
13
ExECIJTED IN DUPLIC~TF ORIGINALS this 1~_ day of ~ ,
2(~U6, b~~ the authorized representative of`the parties.
Attest: City of Corpus Christi
t,.
1: `r, / f .
IT ~
Arm~nd C~apa
City Secretsry
Ge ge . Noe
City Manager
Appreved ~ts to Legal Form on _`~ (_,~,~V~.Y2k.~`( t , 2006
, `~~,~ G ~
BY~ '~V~CJu~~ ~.~'~~ ~i.~,:4 ,~'
We~ly E. Og~en
Assistant City Attorney
For City Attorney
LESS~E:
By-: _ c ~_.~~-
J Charles Berasen
Owner
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14
EXHIBIT A
PREMISES
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15
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EXHIBIT B
INSURANCE REOUIREMENTS
Lessee Liabilitv Insurance
A, Lessee must nat commence ~-ork under this agreement until all insurance required herein is
obtained and such insurance 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 tc~ the City's Risk Manager, two (2) copies of Certificates of Insurance,
showing the following minimum coverage by insurance company(s) acceptable to the City's Risk
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
30-day written notice of canceltation, termination, Bodily Injury and Property Damage
~ non-renewal or material change is required on all Per occurrence aggregate
~ certificat~.s
; Commer~Tial G~~eral Liability or Farm Liability $1,000,000 Combined Single Limit
; coverage including:
; 1. Cotnmercial Broad Form
! ?. Premises - Operations
~ 3. Products/ Completed Operations Hazard
; 4. Co~tractttal Liability
~ 5. Independent Contractor
I 6. Bmad Form Property Damage
; ?. Petsonal Injury
8. Herbicid+e/ Pesticide Liability
' Farm Auto Liability or Automobile Liability---- $1,000,000 Combined Single Limit
' owned, nan-owned or rented
Applicable if employs any one other than
' Workers' Compensation or Farm/ Ranch Owners himself/ herself
; Liability Which complies with the Texas Workers
Compensation Act
~
I Employers Liability
~
$500,000
(', In the event of accidents of anv kind, Lessee must furnish the Risk Manager with copies of all
reports within (10} ten days of any accident.
3006 Airport Farm land lease ins req
3 0-I ?-06 ep Ri~c Mgmt~
16
lI. ADDITIONAL REQUIREMENTS
-~. Lessee must obtain wurkers' compensation coverage through a licensed insurance company in
accordance with Texas law. The contract for coverage must be written on a policy and with
endorsements approved by the Texas Department of Insurance. The coverage provided must be in
arnounts sufficient to assure that all workers' compensation obligations incurred by the Successful
Bidder will be promptlv met.
B. Certiticate of Insurance;
* The City of Corpus Christi must be named as an additional insured on the General Liability
coverage and a blanket waiver of subrogation is required on all applicable policies.
* If~ your insurance company uses the standard ACORD fonn, the cancellation clause (bottom
right) m~st be amended by adding the wording "changed or" between "be" and "canceled", and
deleting the words, "endeavor to", and deleting the wording after "left".
In lieu of modification of the ACORD form, separate policy endorsements addressing the same
substantive requirements are mandatory.
* "The name of the projeet must be listed under "Description of Operations"
* At a minimum, a 30-da,y written notice of cancellation, material change, non-renewal,
termination is reyuired.
C. If the Certificate of Insurance on its face does not show the existence of the coverage required by
iterns i.B (1 }-(8), an authorized representative of the insurance company must include a letter
specifically stating whether items l.B. (1)-(8) are included or excluded.
2006 Airport Fsrrn land lease ins. req_
! 0- I?-06 ep Risk Mgmt
17
EXHIBIT C
A[RCRAF~T OPERATION AREAS SITE PLAN
~
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COF~I'I~ C S`CI IN"I'£.R'~t~'~'IDNAI~ AIF3;PUR'1'
C~~~VS C~[R~~TI,~ TEX~~ ~ ~~ ~
18