Loading...
HomeMy WebLinkAbout1996-126avionamd ord ORDINANCE NO ' I AN ORDINANCE AUTHORIZING THE CITY MANAGER OF THE CITY OF DENTON, TEXAS TO EXECUTE AN AMENDMENT TO THE COMMERCIAL LEASE AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND AVIONICS INTERNATIONAL SUPPLY, INC , AND PROVIDING AN EFFECTIVE DATE THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION I That the City Manager is authorized to execute an amendment to the commercial lease agreement between the City of Denton, Texas and Avionics International Supply, Inc , under the terms and conditions contained within the amendment, which is attached hereto and made a part hereof SECTION II That this ordinance shall become effective immediately upon its passage and approval PASSED AND APPROVED this the eL/? day of ' 1996 JW MILLER, MAYOR ATTEST F WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY AMENDMENT TO AIRPORT LEASE AGREEMENT BETWEEN AVIONICS INTERNATIONAL SUPPLY, INC. AND THE CITY OF DENTON, TEXAS THE STATE OF TEXAS § § KNOW ALL MEN BY THESE PRESENTS COUNTY OF DENTON § WHEREAS, Lessee, Avionics International Supply, Inc has indicated that certain provisions of the December 19, 1995 lease agreement between it and Lessor, City of Denton, Texas, are causing difficulty in securing financing for certain improvements to be constructed on the leased premises, and WHEREAS, Lessor desires to facilitate development at the Denton Municipal Airport by Lessee, This leas am ndment ("Amendment") is made and executed this f day of 1996, at Denton, Texas, by and between the City of Denton, Texas, a municipal corporation, hereinafter referred to as "Lessor", and Avionics International Supply, Inc , having its principal offices at 1750 Westcourt Road, Denton Municipal Airport, Denton, Texas 76207, hereinafter referred to as "Lessee" This amendment amends the lease agreement executed on December 19, 1995 (the "Agreement") between Lessor and Lessee to the extent contained herein only, all other provisions of the Agreement not specifically modified herein remain in full force an effect as originally written Article IX of the agreement is hereby amended to read as follows IX. SUBROGATION OF MORTGAGEE Any person, corporation or institution that lends money to Lessee for construction of any hangar, structure, building or improvement and retains a security interest in said hangar, struc- ture, building or improvement shall, upon default of Lessee's obligations to said mortgagee, have the right to enter upon that portion of said leased premises upon which said fixture is located and operate or manage said hangar, structure, building or improve- ment according to the provisions of the agreement, for a period not to exceed the term of the mortgage with Lessee, or until the loan is paid in full, whichever comes first, but in no event longer than the term of this lease Mortgagee shall not be obligated to operate any business upon the leased premises during its tenancy of the leased premises, and mortgagee shall not conduct any business upon the leased premises which is not aviation related If, during mort- gagee's occupation of the leased premises, mortgagee finds a suit- able substitute tenant to operate an aviation -related business on such portion of the leased premises, it may, with Lessor's consent, assign such portion of the lease to such assignee under the terms contained within Paragraph XI It is expressly understood and agreed that the rights of the mortgagee referred to herein are limi- ted and restricted to those improvements constructed with funds borrowed from mortgagee, that mortgagee shall have no right to exer- cise, possess or assign any options or rights of first refusal not exercised by Lessee prior to default, and that mortgagee shall have no right to use, possess, occupy or assign any leased tracts upon which no mortgagee -financed fixtures are located Article XI of the Agreement is hereby amended to read as follows XI. ASSIGNMENT OF LEASE Lessee expressly covenants that it will not assign this lease, convey more than ten percent (lot) of the interest in his business, through the sale of stock or otherwise, transfer, license, nor sub- let the whole or any part of the said premises for any purpose, without the written consent of Lessor Lessor agrees that it will not unreasonably withhold or delay its approval of such sale, sub- lease, transfer, license, or assignment of the facilities for the airport related purposes All options and rights of first refusal under this lease are personal to Lessee and are not assignable In all other respects, all duties of Lessee shall remain binding upon any assignee Solely to secure financing of buildings, structures or other fixtures on the leased premises, Lessee may assign to a mortgagee, as collateral only, such rights under the lease as are allowed under Article IX, herein Paragraph XVI D of the Agreement is hereby amended to read as follows XVI. MISCELLANEOUS PROVISIONS D. NOTICE Any notice given by one party to the other in connection with this agreement shall be in writing and shall be sent by registered mail, return receipt requested, with postage and registration fees prepaid as follows If to Lessor, addressed to City Manager City of Denton Denton, Texas 76201 2 If to Lessee, addressed to Andy Johnson or Don Hawkins Avionics International Supply, Inc 1750 Westcourt Road Denton Municipal Airport Denton, Texas 76207 Avionics Lease Agreement - Page 2 Notices shall be deemed to have been received on the date of receipt as shown on the return receipt No notice given to Lessee shall be effective unless similar notice is given to any mortgage holder having an interest on any improvements to the leased premises, provided, however, that Lessor's burden to deliver notification to mortgage holders shall be limited to mailing the mortgage holder a duplicate copy of all required notices to Lessee, at the last address furnished by Lessee to the Lessor's Airport Manager LESSEE SHALL HAVE THE OBLIGATION TO NOTIFY LESSOR IN WRITING OF ANY ADDRESSES OF INTERESTED MORTGAGE HOLDERS, AND SHALL INDEMNIFY AND HOLD HARMLESS LESSOR FROM ANY AND ALL DAMAGES CLAIMED BY ANY THIRD PARTY MORTGAGE HOLDER DUE TO A TACK OR ALLEGED LACK OF NOTICE OF ANY ACTIONS TAKEN UNDER THE AGREEMENT. This provision shall not supersede any duties Lessee may otherwise have to notify any mortgage holder of any fact or circumstance under any other agreement This provision creates no third party rights except to the extent stated in Paragraph IX and XI of the Agreement IN WITNESS WHEREOF, the parties have executed this Amendment to the Agreement as of the day and year first above written CITY OF DENTON, TEXAS, LESSOR BY K MILLER, i MAYOR ATTEST , J IFER ALTERS, CITY SECRETARY I Y OF DENTON, TEXAS APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY CITY OF DENTON, TEXAS Avionics Lease Agreement - Page 3 AVIONICS INTERNATIONAL SUPPLY, INC , LESSEE BY An y J on, President THE STATE OF TEXAS § COUNTY OF DENTON § This instrument was acknowledged before me on the cl day of A Q r l t— , 1996 by Andy Johnson TED KNUST r,( P.,. HpWycon" w501Tox06 My Canm�lon E�Irei".0-" APRIL 20, 2000 My Commission Expires NOTARY PUBLIC, STATE OF TEXAS Avionics Lease Agreement - Page 4