HomeMy WebLinkAboutC2008-057 - 2/19/2008 - ApprovedFARM LEASE AGREEMENT
BETWEEN THE
CITY OF CORPUS CHRISTI
AND
JAMES P. KELLY
WHEREAS, the City of Corpus Chris#i ("City") owns the Corpus Christi Inter-
national Airport ("Airport"), located in Corpus Christi, Nueces County, Texas;
WHEREAS, James P. Kelly ("Lessee") desires to lease a certain parcel of land
at the Airport for crop farming purposes; and
WHEREAS, the parties desire to enter into a written lease for approximately
533.287 acres of land to permit Lessee to engage in crop farming ("Lease").
NOW, THEREFORE, in consideration of the mu#ual covenants contained in this
Lease, the parties agree as follows:
Section 1. Parties. This Lease is made by and between the City, acting through its
duly authorized City Manager, or his designee ("City Manager"), and James P. Kelly, as
Lessee, an individual residing in the State of Texas.
Section 2. Premises. The City leases to Lessee the land located on the Airport
property, as more particularly described in the attached Exhibit A ("Premises"), which
exhibit is incorporated into this Lease as if fully set out herein. The Premises consists of
approximately 533.287 acres of land, excluding aten-foot (10') easement along any
perimeter fence abutting the Premises.
Section 3. Term. Subject to the remaining terms and conditions of this Lease, the
term ("Term") of this Lease is five (5) years, beginning September 1, 2007, {"Effective
Date"), and terminating at the close of business on August 31, 2012 {"Termination
Date").
Section 4. Lease Payments.
A. Calculation. Lessee agrees to pay the City Fifty Dollars {$50) per acre annually
{"Lease Payment"). Lessee shall remit the initial Lease Payment not later than
5:00 p.m. Central Standard Time on the Wednesday immediately following the
date this Lease is finally approved by the City's City Council ("City Council"). Ail
subsequent Lease Payments are due on every calendar year anniversary of the
Effective Date of this Lease.
B. Paying Rent. The Lease Payment is due and payable in full in the form of a
cashier's check or cash. The Lease Payment must be delivered to the following
address:
Corpus Christi International Airport
1000 International Drive
"-~~ •s Christi, Texas 78406
2008-057
02/19/08
Ord. 027585
James P. Kelly
Section 5. Lease Agent. The City's Director of Aviation, or his designee ("Aviation
Director"), shall administer this Lease and serve as the City's agent to receive all Lease
Payments, notices, and reports due under this Lease.
Section fi. Use of Premises. Lessee must use the Premises for the purposes of crop
farming and for no other purpose without the express written consent of the City
Manager. Lessee may not construct any improvements on the Premises. Lessee may
not use the Premises for storage of equipment or supplies.
Section 7. Acceptance. 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 City's City Council and executed by the City
Manager. Lessee also acknowledges that Lessee has inspected the Premises and
accepts the Premises in its presen# physical condition, as is, including any and all
defects known and unknown that may exist.
Section 8. Assignment and Sublease. Lessee may not at any time assign, transfer,
convey, sublet, mortgage, pledge, or encumber Lessee's interest in this Lease or any
part of the Premises to any party without the prior written consent of the City, which
approval will not be unreasonably withheld. In the event that Lessee directly or
indirectly assigns, transfers, conveys, sublets, mortgages, pledges, or otherwise
encumbers this Lease or any portion of the Premises without the prior written consent of
the City, the City may, in its sole discretion, terminate this Lease.
Section 9. Required Modification or Amendment of Lease. tf the Federal Aviation
Administration or its successor ("FAA") requires modifications or amendments to this
Lease as a condition precedent to granting funds for Airport improvements, Lessee
agrees to consent to the modifications or amendments to this Lease as may be
reasonably required for the City to obtain the funds; provided, however, that Lessee will
not be required to pay increased Lease Payments, change the use of the Premises, or
accept a relocation or reduction in size of the Premises until Lessee and the City have
fully executed an amendment to this Lease that is mutually satisfactory to all parties
regarding any terms or conditions of this Lease affected by said required actions.
Section ~ 0. Reservation of Use.
A. The City reserves the right to sell, use, or lease for a use different from the
present use all or any portion of the Premises at anytime during the temp of this
Lease. If the Premises are used or leased before the Expiration Date and the
purchaser or new lessee is not willing to take the Premises subject to this Lease
and demands immediate possession, then Lessee agrees to vacate and
surrender possession within fifteen ('15) days after receipt of notice to vacate.
B. if it becomes necessary for Lessee to vacate in the event of a sale or new lease,
then the City shall pay Lessee for the land or portion thereof so vacated the
following amounts, to-wit:
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{1) 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 $5.00 per acre.
{2) If there is a growing crop, then the average return on an acreage basis
that the same crops bring on other land covered by this Lease or, if there is
no other land covered by this Lease, then on similar land in the immediate
vicinity.
C. Any payments made to Lessee under this section shall be based on the Lessee's
share of the crop land actually cultivated and farmed under this Lease, less
harvesting costs.
Section 11. Subordination to U.S. and FAA Requirements. This Lease is
subordinate to the provisions of any existing or future agreement between the City and
the government of 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 11 or under Section 9
above, is to take any of the Premises under this Lease ou# from the control of City, then
City shall make every effort to provide Lessee with land substantially similar to the
Premises used by Lessee far the remainder of the Term if similar premises are available
far the type of use granted within this Lease.
Section 12. Maintenance; Utilities.
A. Lessee, at its own expense, shall maintain the Premises in good appearance and
repair and in a safe condition. Lessee shall, except during the growing season
prior to harvest, keep the Premises mowed to a height under 12 inches.
B. Within seven days of harvest, Lessee shall plow under the remains of the
harvested crop. Additionally, Lessee shall spray the plowed-under areas with an
approved growth inhibitor in order to prevent secondary growth of the remains.
C. Lessee must ensure that the Premises are maintained free of foreign object
debris and shall control soil erosion on the Premises.
D, The Aviation Director is the sole judge of the quality of Lessee's maintenance,
which must be reasonable and consistent with other City and Airport properties.
The Aviation 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. The Aviation Director must notify
Lessee in writing of any default. If the required maintenance, in Aviation
Director's deficiency notice to Lessee, is not commenced by Lessee within 15
days after receipt of written notice, or is not diligently prosecuted to completion
within the time stated, the Aviation Director may enter upon the Premises and
perform the subject maintenance, and Lessee agrees to reimburse the City for its
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cost plus 20% overhead within 30 days after the Aviation Director's written
demand therefor, together with copies of all bids for the repairs and maintenance.
E. Lessee must immediately remove or correct any hazardous or potentially
hazardous condition on the Premises upon knowledge thereof, or after receipt of
notice from the Aviation Director, whichever occurs sooner. At the Aviation
Director's direction, Lessee must close the Premises, or affected portion, until the
hazardous or potentially hazardous condition is removed or corrected.
F. Lessee, at its own expense, shalt replace any and all utility lines and equipment
located on the Premises which may be damaged or destroyed as a result of
Lessee's farming or agricultural operations. Lessee, at its own expense, shall
repair any and ail damage caused to the Premises as a result of the willful or
negligent acts or omissions of Lessee, its employees, or agents.
G. Lessee shall pay for all utilities, including water and waste disposal, Lessee uses
at the Premises.
H. Crop Setbacks.
(1 } Lessee shall plant crops no closer than 10 feet to any Airport perimeter
fence.
(2} Lessee shall plant crops no closer than 575 feet from any runway
centerline and no closer than 1,000 feet from the end of any runway.
(3) Lessee shall plant crops no closer than 130 feet from the centerline of
any taxiway.
(4) Lessee shall plant crops no closer than 113 feet from the edge of any
aircraft apron.
Section 13. Inspection and Premises Access. The Aviation Director shall have the
right to inspect the Premises during the City's normal business hours, without prior
notice. The City reserves the right to install wildlife control devises and to take
additional wildlife control measures, as may be necessary. The City shall have the right
at any and all times of ingress and egress on and over the Premises for the purposes of
conducting and carrying on any business incident to activities of the City.
Section 14. Security Badges. Each of Lessee's employees needing access to a
restricted area (including the area outlined in Section 15 of this Lease} must wear a
security badge while in the restricted area. Lessee will pay an issuance fee for each
badge and a replacement fee for each lost security badge. The 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 the
Aviation Director immediately after any employee of Lessee who was issued a security
badge is terminated or loses a badge. Lessee and Lessee's employees must comply
with all City and federal security regulations and requirements.
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Section 15. Access to the Aircraft Operating Area.
A. Lessee and its respective contractors, suppliers of materials, furnishers of
services, employees, agents, and business invitees must comply with alf present
and future laws, rules, regulations, and ordinances promulgated by the City, the
Airport, the federal Transportation Security Administration ("TSA"}, the FAA, or
other governmental agencies to protect the security and integrity of the Airport's
aircraft operating area ("AOA"), as shown on the attached Exhibit B, which is
incorporated in this Lease as if fully set out herein. Subject to the approval of the
Aviation Director, Lessee must adopt procedures to control and limit access to
the AOA by Lessee and its respective contractors, suppliers of materials,
furnishers of services, employees, agents, and business invitees in accordance
with all present and future City, Airport, TSA, and FAA laws, rules, regulations,
and ordinances.
B. Lessee must pay all FAA and TSA fines associated with security breaches or
infractions committed by Lessee's employees, agents, contractors, suppliers, and
business invitees in the AOA, regardless of whether the fine is assessed to the
City or the Airport, as set out in the City Code of Ordinances, Sec. 9-31.
C. Lessee agrees to indemnify, hold harmless, and defend the City,
its olfcers, employees, agenfs, and representatives against the
risk of legal liability for death, Injury, or damage to persons or
property, direct or consequential, arising from enfry of persons
info the AOA where permitted, allowed, or otherwise made
possible by Lessee, its employees, contractors, suppliers of
materials, furnishers of services, business invitees, agents, or
any other person under the dlrecfion of Lessee In violation of
City, Airport, TSA, and FAA laws, rules, regulations, or
ordinances or Lessee's approved procedures for controlling
access to the AOA.
D. Lessee will have access to the Premises, subject to compliance with all
applicable Airport, TSA, and FAA security procedures. Movement of all persons
in the AOA and 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.
E. No vehicles owned or operated by Lessee may operate within the movement or
non-movement areas of the AOA except those in compliance with Airport, TSA,
and FAA rules and regulations.
Section 'ifi. Operation within Airport Certification. Lessee must comply with all
rules that are applicable to its operations at the Airport under the Airport Certification
Rules of the Federal Aviation Regulations ("FAR"), Part 139, as amended (14 CFR Part
Page 5 of 15
139, as amended]. Copies of the FAR are available in the office of the Aviation
Director.
Section 17. Federal Code Requirements for Equipment Use. Lessee covenants to
comply with the notification and review requirements set out in the FAR, Part 77, as
amended [14 CFR Part 77, as amended}, if Lessee plans to use equipment in its
operation that requires notifica#ion as outlined in this regulation. Copies of the FAR are
available in the office of the Aviation Director.
Section 18. Control of Structures and Equipment. Lessee may not make use of or
operate any structure, building, antenna, object, or equipment which has its highest
point above a mean sea level elevation established by the FAA or the City as a height
limitation on said structure, building, antenna, object, or equipment. City may enter the
Premises and remove any such structure, building, antenna, object, or equipment and
assess the removal expense against Lessee plus a 20% overhead charge.
Section 19. Aerial Approaches. The City 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
the Aviation Director's opinion, would limit the usefulness of the Airport or constitute a
hazard to aircraft. Lessee 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 including, but not limi#ed to, electrical or electronic interference with
communications, electrical, or electronic equipment or the creation of smoke, dust, or
glaring or misleading lights.
Section 20. Right to Overflight. The 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, and using the airspace for landing at or taking off from, or operating on, the Airport.
Section 21. Hazardous Substances.
A. Lessee covenants to comply with all environmental laws, rules, regulations,
orders, and permits applicable to Lessee's operation 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, or disposal of hazardous or regulated
substances.
B. Except for hazardous substances governed by and transported in fuH compliance
with the transportation laws of the State of Texas 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 the Aviation
Director's prior written approval and without first obtaining all required permits
and approvals from all authorities having jurisdiction over Lessee's operation on
or near the Airport.
Page 6 of 15
C. If Lessee determines that a threat to the environment including, but not limited to,
a release, discharge, spill, or deposit of a hazardous or regulated substance has
occurred or is occurring which affects or threatens to affect the Airport or
persons, structures, equipment, or other property located thereon, Lessee must
notify immediately by verbal report in person or by telephone, to be promptly
confirmed in writing, (1 } the Aviation Director, (2} the Airport's Public Safety
Office, (3} emergency response centers, and {4} environmental or regulatory
agencies, as required by law or regulation, and must follow such verbal report
with all written reports required by law.
D. 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 a hazardous or regulated substance into the
drainage systems, soils, ground water, waters, or atmosphere, in accordance
with applicable law and as authorized or approved by any federal, state, or local
agency having authority over environmental matkers.
E. Lessee must keep a readily accessible file of materials safety data ("MSD")
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
discharged and have that MSD sheet available for the first responders to the
scene.
F. 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.
G. Lessee agrees and acknowledges that the obligations set forth in this section
survive termination of this Lease.
Section 22. Nondiscrimination and Affirmative Action.
A. Nondiscrimination -General. Lessee, for itself, its employees, agents, and
representatives, as a part of the consideration for the making of this Lease,
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 of the Premises; {2) Lessee will use the Premises in
compliance with all requirements imposed by or pursuant to 14 CFR Part 152,
Subpart E, Nondiscrimination in Airport Aid Program, Title VI of the Civil Rights
Act of 19fi4 and 49 CFR, Subtitle A, Part 21, Nondiscrimination in Federally
Assisted Programs of the Department of Transportation, and as said Title and
Page 7 of '~ 5
regulations may be amended, and with other applicable State and federal laws,
rules, or regulations, as amended.
B. Nondiscrimination -Business Owner. This Lease is subject to the requirements
of 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 contract or subcontract, purchase or lease agreement, or other
agreement covered by 49 CFR Part 23.
C. Remedy for Breach. If Lessee breaches a nondiscrimination covenant, the City
may immediately reenter the Premises, and the Premises and all Lessee's
interest therein reverts to the City. This provision is not effective until the
procedures of 49 CFR Part 21 are completed, including exercise or expiration of
appeal rights.
D. Affirmative Action. Lessee covenants that it will undertake an affirmative action
program as required by 14 CFR Part 152, Subpart E, to ensure that no person on
the grounds of race, creed, color, religion, sex, age, national origin, handicap, or
political belief or affiliation is excluded from participating in any employment
activities covered in 14 CFR Part 152, Subpart E. Lessee covenants that no
person will be excluded on #hese grounds from participating in or receiving the
services or benefits of any program or activity covered by that subpart. Lessee
further covenants 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 own expense, will comply with any applicable
requirements of the Americans with Disabilities {ADA} Act, as it may be
amended.
Section 23. Compliance with Laws.
A. 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 directives applicable to Lessee's
use and occupancy of the Premises. Failure to observe or comply with any law,
rule, or regulation will subject this Lease to cancellation by the City under Section
24 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. Congress passes that apply to any entity that operates at the
Airport.
C. State and Local Laws. Lessee covenants to comply with all applicable State and
local laws, rules, regulations, and policies.
Page 8 of 15
Section 24. Cancellation; Termination; Re-entry.
A. Cancellation 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 or more of the following events:
1. The permanent abandonment of the Airport;
2. The lawful assumption by the United States government, or any authorized
agency thereof, of the operation,
substantial part or parts thereof,
operating for at least 150 days;
control, or use of the Airport, or any
that substantially restricts Lessee from
3. The issuance by any court of competent jurisdiction of an injunction that
prevents or restrains the use of the Airport by the Lessee and that continues
for at least 150 days; or
4. The default by the City in the performance of any covenant and the failure of
the City to remedy the default within 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 by common law, statutory law, or as elsewhere provided in this
Lease, this Lease may be terminated by City if Lessee;
1. Is in arrears in the payment of any portion of the Lease Payment or of any
fees or charges required to be paid by Lessee under #his Lease in excess of
ten 410) 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 in excess of 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 Aviation Director for approval within thirty 430) days from receipt
of the notice. The Aviation Director shall have sole discretion regarding the
approval or rejection of Lessee's proposed plan.
C. City's Right to Entry.
1. if the City terminates this Lease or if Lessee abandons the Premises, the City
may enter upon the Premises.
Page 9 of 15
2. In the event of termination by City or abandonment by Lessee, Lessee hereby
irrevocably appoints the City Manager as its agent to remove any and ali
persons and property from the Premises and place any property in storage far
the account of and at the expense of Lessee. Ali property on the Premises
is hereby subject to a contractual landlord's lien to secure payment of
delinquent rent and other sums due and unpaid under this Lease, and
any and all exemption laws are hereby expressly waived in favor of said
landlord's lien, Futhermore, 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
by the Lessee but is in addition thereto.
3. 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, the 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 safe, 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 the City terminates this Lease and reenters the Premises, the
City may relet the Premises and, if a sufficient sum is not realized after paying
the expenses of the reletting to satisfy the rent owed and other sums agreed
to be paid by Lessee, Lessee agrees to pay any deficiency within 30 days of
the Aviation Director's written demand therefor.
D. Notice of Termination. If an event of 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 terming#ion. 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.
Section 25. Property Removal upon Expiration or Termination.
A. Removal of Equipment. Upon termination or expiration of this Lease, Lessee
may remove all equipment 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 expiration of the Lease, at
Lessee's expense, and to the satisfaction of the Aviation Director.
B. Notwithstanding the foregoing, if Lessee fails to remove equipment within 30
days from the date of termination or expiration of this Lease, then the 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 the City Manager
incurs on behalf of the City in disposing of the personalty must be paid by Lessee
within 10 days of the City Manager's written demand thereof. The City Manager
will provide Lessee with a written itemized breakdown of the costs recaptured, if
Page 10 of 15
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.
Section 26. 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 current monthly rental rate, and Lessee agrees to surrender the
Premises upon 30 days written notice. Failure to timely surrender Premises following
notice subjec#s Lessee to payment of a monthly holdover fee equal to the then current
monthly rent (Lease Payment) for each month of delay, in addition to the payment of
rent.
Section 27. 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 excepted. In addition to a landlord's lien provided by the law of the State
of Texas, the City has a contractual lien on ail property of Lessee on the Premises as
security for nonpayment of rent.
Section 28. Indemnification.
A. GENERAL -Lessee must indemnify, hold harmless, and defend
fhe City of Corpus Christi, ifs officers, employees, agents, and
representatives 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, mediafion, and administrative proceedings) which may
be brought, alleged, or imposed against the City, its officers,
employees, agents, or represenfatives arising directly or
indirectly from or in any way connected with {i) any property
damage 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 secured areas of the Airport as set out herein,
excepting only that liability as may resulf from the gross
negligence or the willful misconduct of the City, including its
officers, employees, agents, and representafives; {ii) the failure
of Lessee, its agenfs, or employees to comply with the terms
and conditions of this Lease or to comply with any applicable
federal, State, or Local Laws, rules, regulations, or orders
including, but not limifed to, any and all applicable federal, State,
or local environmental laws, rules, regulations, or orders; or (iii)
release of any hazardous or regulated substances or waste onto,
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into, or from the Premises or other Airport property, connected
in any way with Lessee's operations or fhe 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 forfh in this Paragraph shall survive the
termination of this Lease.
B. NOTICE -Notwithstanding the above indemnifications, Lessee must give the
Aviation Director notice of any matter covered hereby and forward to the 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.
C. INDEMNITY WAIVER -Lessee, if a 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, employees, agents, or representatives, as
the case may be.
Section 29. Insurance.
A. 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 C. Lessee's insurance company must provide the
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
levels and types of insurance.
B. The Risk Manager shall annually assess the levels and types of insurance
required by the Lease. The Risk Manager may increase or decrease the levels
or #ypes 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 the
Aviation Director.
C. 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 the City as an additional insured.
Section 30. Notice.
A. Notices are sufficient if in writing and sent by certified mail, return receipt
requested, postage prepaid, or by overnight delivery service as addressed below:
Page 12 of 15
ff to the City:
Corpus Christi International Airport
Attn: Aviation Director
1000 International Drive
Corpus Christi, Texas 78406
If to Lessee:
James P. Kelly
6601 Bear Lane
Corpus Christi, Texas 78406
B. Either party may change the address to which notices are sent under this section
by providing a change of address, in writing, to the other party within ten (10)
business days of the change.
Section 31. General Provisions.
A. Mineral Rights. City 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 the City Manager or Lessee at
any time to declare a forfeiture of this Lease for any breach or default whatsoever
hereunder does not waive the City's or the Lessee's right thereafter to declare a
forfeiture for a similar, other, or succeeding breach or default.
C. Force Majeure. Neither the 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 or periods of excessive rain or snow, inability to obtain labor
or materials or reasonable substitutes therefore, govemmental 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, excluding the obligations imposed with regard to the payment of rental
and other charges to be paid by Lessee pursuant to this Lease.
D. Rules and Regulations. The Aviation Director may adopt and enforce rules,
regulations, and policies 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.
E. 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 any provision of this Lease.
F. Venue. Venue of any action brought under this Lease lies in Nueces County,
Texas, exclusively, where the Lease was executed and will be performed.
Page 13 of 15
G. Successors and Assigns. Subject to the limitations upon assignment and
transfer contained herein, this Lease binds and inures to the benefit of the parties
hereto, their respective heirs, successors, and assigns.
H. 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.
I. Taxes and Licenses. Lessee must pay, prior to the past due date, all taxes of
whatever character, including ad valorem and intangible taxes, that may be
levied or charged upon the Premises or operations hereunder and upon Lessee's
rights to use the Premises, whether the taxes are assessed against Lessee or
City. Additionally, 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 licenses or permits
necessary or required by law for the installation of equipment and for the conduct
of its operations under this Lease. 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 and promptly pays whatever tax is
ultimately owed. Furthermore, Lessee must pay any taxes not being contested
prior to the past due date.
J. 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, within Lessee's leased area, suitable sealed and fireproof
receptacles approved by the Aviation Director for all trash and other refuse
generated by Lessee's use of the Premises. The piling of boxes, barrels, or
other similar items in or within view from a public area is not permitted.
K. If Lessee consists of two or more individual persons or entities, each person or
entity named in this Lease is jointly and severally liable for all performances,
obligations, and duties imposed by the terms, conditions, and covenants of this
Lease.
L. Publication Costs. All costs far publication of notice of this Lease required by the
City Charter, if any, must be paid by Lessee.
M. Disclosure of Interests. In compliance with Section 2-349 of the City's Code of
Ordinances, the Lessee shall complete the City's Disclosure of lnferests form,
which is attached to this Agreement as Exhibit D, the contents of which, as a
completed form, are incorporated in this document by reference as if fully set out
in this tease.
Page 14 of 15
EXECUTED IN DUPLICATE ORIGINALS this ~~ day of , 2008.
Attest:
Armando Chapa
City Secretary
Approved as to legal form: , 2008
iizab R. Hundley
Assis t City Attorney
for the City Attorney
CITY OF CORPUS CHRISTI
o e K. Noe
City Manager
r0.. pa'~5g5_. Au 4 „ul~a~~
~ L~N1f1iGll, ~ 1 ~ Og
~ECitETARY ~~•
LESSEE: James P. Kelly
i nature
STATE OF TEXAS
COUNTY OF ~IA.~(Q.5
a - s'- o~
Date
BRENDA HOLLEY
' ~ • Notary Public. State o! Ted
ily Gemmisalon Expires G2-12-2Q10
This instrument was acknowledged before me on ~rlAa+'~ ~ B 0 8, by
~Q.I'~1i25 P- ~CQ.I f C4 , TXDL # Ola(~'~~~ ~ 0 ~Di+~~ GI ig/ ! 3_ ---,
an individual person.
Notary Public, State of T as
Page 7 5 of 15
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CORPUS CHRISTI INTERNATIONAL AIRPORT FARM CEASE R~
~~ CORPUS CHRISTI, TEXAS EXHIBIT A °ote ,i,Bioe
Sheet ka.
EXHIBIT B
AIRCRAFT OPERATION AREAS SITE PLAN
o1a~o~a~e' ~ -~ ~~w,
GRAP}11G SCALE !j/
~__. _
- - ecearen sav1oEw ~
. ~ewnvrvxc a~oo;
c ~ ~ 0 ~ _~.
AfR:ROI2T tvf4VEIC~iF;ttiT/~ON_-I~lOVF'hlF,.lV'T AREAS
CORl'UU CHRiS'I'f I~'I'k;EZ.~A'1'IONAI.. AIRPElFZ1'
CDRPtiS C~II2[S`I`I, '['EXAS
EXHIBIT C
INSURANCE REQUIREMENTS
I. Lessee's Liability Insurance
A. Lessee must not commence work 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 to 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 cancellation, termination, Bodily Injury and Property Damage
non-renewal or material change is required on all Per occurrence aggregate
certificates
Commercial General Liability or Farm Liability $1,000,000 Combined Sin e Limit
coverage including:
1. Commercial Broad Form
2. Premises -Operations
3. Products/ Completed Operations Hazard
4. Contractual Liability
5. Independent Contractor
6. Broad Form Property Damage
7. Personal Injury
8. Herbicide/ Pesticide Liabili
Farm Auto Liability or Automobile Liability---- $1,000,000 Combined Single Limit
owned, non-owned or rented
Applicable if employs any one other than
Workers' Compensation or Farm/ Ranch Owners himself/ herself
Liability Which com lies with the Texas Workers
Compensation Act
Employers Liability $500,000
C. In the event of accidents of any kind, Lessee must furnish the Risk Manager with copies of all
reports within {10) ten days of any accident.
2007 Airport Farm land lease ins. req.
Exhibit C (page 2 of 2)
II. ADDITIONAL RE UIREMENTS
A. Lessee must obtain workers' 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
amounts sufficient to assure that all workers' compensation obligations incurred by the Successful
Bidder will be promptly met.
B. Certificate of Insurance:
* The City of Carpus 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 form, the cancellation clause (bottom right)
must be amended by adding the warding "changed or"between "be" and "canceled", and deleting
the words, "endeavor to", and deleting the warding after "left".
In lieu of modification of the ACORD form, separate policy endorsements addressing the same
substantive requirements are mandatory.
* The name of the project must be listed under "Description of Operations"
* At a minimum, a 30-day written notice of cancellation, material change, non-renewal,
termination is required.
C. If the Certificate of Insurance on its face does not show the existence of the coverage required by
items 1.B (1)-(8}, an authorized representative of the insurance company must include a letter
specifically stating whether items 1.B. (1)-(8) are included or excluded.
2007 Airport Farm land lease ins. req.
EXHIBIT D
•......
GTTY OF CORPUS CARLS"IT
DLSCLOSURE OF INTERES`Y`
City of Corpus Christi Qrdiraance i 7I 12, as amended, requires sU persons or firms seeiang to do business with the C~ty-
t_o prav~de the following information. Every qucstiaa must be answered. If the quessan ~s nor applicahl~, aasw~er with
"NA". See rcvacse sido for definiti'ans.
COMPANYNAME : n ~ ~ ~, kr 11-i
P. O. BOX: -
~: ~' ~ ' ~" : 1'~ *Pe4S L`h r~ s~ 1` T~~rc ZIP: 7 £35/ b 6
Fnuu~ ~s: i. cowration ~ ~ 1 i. ~ada«shh~ { ~ ~- sakosvner {.~
4. Association S. Other ( )
DffiCLOS~RE QUESITONS
If additional spatx is nerxssaty, please use the rcvetse side of this page or attach se~mratie sheet:
1. static the ~ of each "emgloyoe" of the C' of Carpus Christt having an "ovvnetrshrg mrerest" ~g 3%
or more of the ownership is the aboiie named "f'um."
Name Job Title and City Department {if known)
2. State the names of each "afficiai" of the City of Carpus Christi having as "ownership interest" constituting 3% or
matt ofthe vwnexship in the above armed "fine."
Name ~. Tit1e -
3. State the names of each "board member" of the City otf~Corptts Christi having as "o~vnasaip iat~' canstitotiag
3°/. or mare of the ownership in the above named i`f "
Name Board, Commission, or Committee
..~
4. State the names of each employee or officer of a "consultant" for the City of Corpus Christi who worked an any
matter relaxed to the sub,~ect of this contract and has an "ownership in#er~st" ~g 3% or more of the
ownership is the above named "fum:'
Consultant
t___., -
CERTIFICATE
I certify that all information provided is true cad comxt as of the date of this statement. fat Y have not knowingly
whththeld disclosure of an information raluested; and that supplemental statemeat~ Rill be pmmptiy submitted to the
CZty of Corpus Christi, Texas as changes occur.
CertifyirtgPersan: ~+~-ds P, kt l/~~ Trtlex ousn3c'sz•
a _
Signature of Certifying Person: Date: _ r~ ~ i £~ ° 0 8' - -