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HomeMy WebLinkAbout2001-178FILE REFERENCE FORM 1 2001-178 X Additional File Exists Additional File Contains Records Not Public, According to the Public Records Act Other FILE(S) Date Initials Lease Assignment & First Amendment to Airport Lease Agreement - Ordinance No. 2006-020 01/17/06 JR Lease Assignment & Second Amendment to Airport Lease Agreement - Ordinance No. 2008-254 10/21/08 JR Assignment of Commercial Airport Operator Lease Agreement - Ordinance No. 2016-051 02/16/16 JR s War mcummwW nwu I\Nw&Avimb ON mWJI Brown)eon ORDINANCE NO ML i 7 AN ORDINANCE APPROVING A COMMERCIAL OPERATOR AIRPORT LEASE AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND TRIANGLE AVIATION, INC, AND PROVIDING AN EFFECTIVE DATE THE COUNCIL OF THE CITY OF DENTON, TEXAS HEREBY ORDAINS SECTION 1 The City Manager or his designee is hereby authorized to execute a airport lease agreement for commercial operator between the City of Denton and John Brown, in substantially the form of the Airport Lease Agreement which is attached to and made a part of this ordinance for all purposes SECTION 2 This ordinance shall become effective immediately upon its passage and approval PASSED AND APPROVED this the � day of �2,"L, 2001 EULINE BROCK, MAYOR ATTEST JENNIFER WALTERS, CITY SECRETARY BY: AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY 10 THE STATE OF TEXAS § COUNTY OF DENTON § AIRPORT LEASE AGREEMENT COMMERCIAL OPERATOR KNOW ALL MEN BY THESE PRESENTS This lease is made and executed this day of 2001, at Denton, Texas, by and between the City of Denton, Texas, a municipal corporation, hereinafter referred to as "Lessor", and Mr John Brown, President, Triangle Aviation, Inc having principal offices at 11505 Airway Boulevard, Roanoke, Texas 76262, hereinafter referred to as "Lessee" WITNESSETH: WHEREAS, Lessor now owns, controls and operates the Municipal Airport (Airport) in the City of Denton, County of Denton, State of Texas, and WHEREAS, Lessee desires to lease certain premises on said airport and construct and maintain an aircraft hangar and related aviation facilities thereon, and NOW, THEREFORE, for and in consideration of the promises and the mutual covenants contained in this Agreement, the parties agree as follows I. CONDITIONS OF AGREEMENT NOTWITHSTANDING ANY LANGUAGE TO THE CONTRARY HEREINAFTER CONTAINED, THE LANGUAGE IN PARAGRAPHS A THROUGH D OF THIS SECTION SHALL BE BINDING A PRINCIPLES OF OPERATIONS The right to conduct aero- nauticandl arelated activities for furnishing services to the public is granted to Lessee sub]ect to Lessee agreeing 1 To furnish said services on a fair, equal and not uniustly discriminatory basis to all users thereof, and 2 To charge fair, reasonable and not unDustly discriminatory prices for each unit or service, provided, that Lessee may be allowed to make reasonable and nondiscriminatory discounts, rebates, or other similar types of price reductions to volume purchasers B NON-DISCRIMINATION Lessee, for himself, his personal representatives, successors and interests, and assigns, as a part of the consideration hereof, does hereby covenant and agree as a covenant running with the land that 1 No person on the grounds of race, religion, color, sex, or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities, 2 In the construction of any improvements on, over, or under such land and the furnishings of services thereon, no person on the grounds of race, religion, color, sex, or national origin shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination, 3 Lessee shall use the premises in compliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally assisted programs of the Department of Transportation - Effectual of Title VI of the Civil Rights Act of 1964, as said Regulations may be amended C RIGHT OF INDIVIDUALS TO MAINTAIN AIRCRAFT It is clearly understood by Lessee that no right or privilege has been granted which would operate to prevent any person, firm or corporation operating aircraft on the airport from performing any services on its own aircraft with its own regular employees (including, but not limited to, maintenance and repair) that it may choose to perform D NON-EXCLUSIVE RIGHT. It nothing herein contained shall be the granting of an exclusive right U S C Appendix §1349 E PUBLIC AREAS is understood and agreed that construed to grant or authorize within the meaning of Title 49 1 Lessor reserves the right to further develop or improve the landing area of the airport as it sees fit, regardless of the desires or views of Lessee, and without interference or hindrance 2 Lessor shall be obligated to maintain and keep in good repair the landing area of the airport and all publicly owned facilities of the airport, together with the right to direct and control all activities of Lessee in this regard 3 During time of war or national emergency, Lessor shall have the right to lease the landing area or any part thereof to the United States Government for military or BROWN LEASE AGREEMENT DOC - Page 2 naval use, and, if such lease is executed, the provisions of this instrument insofar as they are inconsistent with the provisions of the lease to the Government, shall be suspended 4 Lessor reserves the right to take any action it considers necessary to protect the aerial approaches of the airport against obstruction, together with the right to prevent Lessee from erecting, or permitting to be erected, any building or other structure on or adjacent to the airport which, in the opinion of Lessor, would limit the usefulness or safety of the airport or constitute a hazard to aircraft or to aircraft navigation 5 This Lease shall be subordinate to the provisions of any existing or future agreement between Lessor and the United States or agency thereof, relative to the operation or maintenance of the airport II. LEASED PREMISES Lessor, for and in consideration of the covenants and agree- ments herein contained, to be kept by Lessee, does hereby demise and lease unto Lessee, and Lessee does hereby hire and take from Lessor, the following described land situated in Denton County, Texas A Land A tract of land, being approximately 18,000 square feet, or 0 413 acres, drawn and outlined on Attachment "A" and legally described in Attachment "B," such attachments being incorporated herein by reference Together with the right of ingress and egress to said proper- ty, and the right in common with others so authorized of passage upon the Airport property generally, subject to reasonable regulations by the City of Denton and such rights shall extend to Lessee's employees, passengers, patrons and invitees For purposes of this agreement, the term "Premises" shall mean all property located within the metes and bounds described and identified within Attachment "B", including leasehold improvements constructed by the Lessee, but not including certain easements or property owned and/or controlled by the Lessor B IMPROVEMENTS PROVIDED BY LESSOR NONE There will be no improvements provided by Lessor, except as set forth in Article II E "Access to Utilities" below For the purpose of this Agreement, the term "Lessor improve- ments" shall mean those things on or adjacent to the Premises belonging to, constructed by, or to be constructed by the Lessor, which enhance or increase, the value or quality of the leased land BROWN LEASE AGREEMENT DOC - Page 3 or property Unless otherwise noted herein, all Lessor improvements are and will remain the property of Lessor All Lessor improvements must be described in detail above, or above referenced and attached to this Agreement in an exhibit approved by Lessor C ZAPROVE NT4 pROVTDRD By TESEEF_ on described lot, Lessee shall construct a hangar facility not less than 5,000 square feet with taxiway access and appropriate culverts or drainage as required by City ordinances in the utility right of way south and north of the proposed hangar as well as other improvements as determined necessary by City ordinances Said improvements shall be completed not less than 365 days from the date of this agreement Within two years of the date of this agreement, Lessee shall construct an office and shop not less than 1,000 square feet Said improvements will be made to the south side of the then existing structure to compliment the proposed commercial activities of the lease improvement D EASFMMELME Lessor and Lessee by mutual agreement may establish, on the leased premises, easements for public access on roads and taxiways E ACCESS TO TTTTLITIFG. Lessor represents that there are water and 3-phase electricity lines within three hundred feet (3001) of the leased premises available to "tap -in" by Lessee, and that the same are sufficient for usual and customary service on the leased premises Lessee will be required to connect to the sewer line located approximately fifty (60) feet south of said lot III. TERM The term of this Agreement shall be for a period of thirty , 2001, ancontin through athe last eday nofoApril, n the 12031, unless st day of yearlier terminateduing under the provisions of the Agreement Any attempt by Lessee to renegotiate this Lease shall be in writing addressed to the City Manager or his designee at least one hundred eighty (180) days before the expiration of the stated term of this lease, and at least 180 days before the expiration of any additional renegotiated period Lessee has the option to renew for two (2) additional ten (10) year terms The rental and terms to be negotiated shall be reasonable and consistent with the then value, rentals and terms of similar property on the airport IV. PAYMENTS, RENTALS AND FEES Lessee covenants and agrees to pay Lessor, as consideration for this lease, the following payments, rentals and fees A LAND RENTAL shall be due and payable in the sum of $0 15 BROWN LEASE AGREEMENT DOC - Page 4 per square foot or Two Thousand Seven Hundred Dollars ($2,700 00) per year, payable in twelve (12) equal monthly installments in the sum of Two Hundred Twenty Five Dollars ($225 00) in advance, on or before the 1st day of each and every month during the term of this agreement Lessee has the option to pay annual rentals and fees in whole on or before the 1st day of October, at the beginning of the City,s fiscal year, each and every year of this lease Notwithstanding the foregoing, the annual lease rental to be reduced by the current lease rate per square foot, as adjusted by the CPI-U referenced in Section IV D , times the number of square feet comprising all easements established in accordance with Article II(C) B LESSOR IMPROVEMENTS RENTALS NONE There are no Lessor improvements on the leased premises C PAYMENT, PENALTY, ADJUSTMENTS All payments due Lessor from Lessee shall be made to Lessor at the offices of the Finance Department of the City of Denton, Accounts Receivable, 601 East Hickory, Denton, Texas, unless otherwise designated in writing by the Lessor If payments are not received on or before the 15th, a five (5) percent penalty will be due as of the 16th If payments are not received by the 1st of the subsequent month, an additional penalty of one (1) percent of the unpaid rental/fee amount will be due A one (1) percent charge will be added on the 1st of each subsequent month until the unpaid rental/fee payment is made Failure to pay the rent or penalty amounts on delinquent rent shall constitute an event of default of this lease The yearly rental for land and improvements herein leased shall be readjusted at the end of each one (1) year period during the term of this lease on the basis of the proportion that the then current United States Consumer Price Index for all urban consumers (CPI-U) for the Dallas -Fort Worth geographical region, as compiled by the U S Department of Labor, Bureau of Labor Statistics bears to the applicable index at the execution of this lease The original land rental amount is based upon the formulae set forth in Section IV A for the land herein leased Each rental adjustment, if any, shall occur on the 1st day of April, beginning 2002, and every other year thereafter on such date The adjustments in the yearly rent shall be determined by multiplying the minimum yearly rent as set forth in Section IV A by a fraction, the numerator of which is the index number for the last month prior to the adjustment, and the denominator of which is the index number applicable at the execution of this lease If the product of this multiplication is greater than the minimum yearly rent as set forth in Section IV A , Lessee shall pay this greater amount as the yearly rent until the time of the next rental adjustment as called for in this section If the product of this multiplication is less than the minimum yearly rent of as BROWN LEASE AGREEMENT DOC - Page 5 set forth in Section IV A , there shall be no adjustment in the annual rent at that time, and Lessee shall pay the previous year's annual rent until the time of the next rental adjustment as called for in this section In no event shall any rental adjustment called for in this section result in an annual rent less than the previous year's annual rent The adjustment shall be limited so that the annual rental payment determined for any given year shall not exceed the annual rental payment calculated for the previous year by more than twenty (20) percent If the consumer price index for all urban consumers (CPI-U) for the Dallas -Fort Worth geographical region, as compiled by the U S Department of Labor, Bureau of Labor Statistics, is discontinued during the term of this lease, the remaining rental adjustments called for in this section shall be made using the formula set forth in Subsection (a) above, but substituting the index numbers for the Consumer Price Index -Seasonally Adjusted U S City Average For All Items For All Urban Consumers (CPI-U) for the index numbers for the CPI-U applicable to the Dallas -Fort Worth geographical region If both the CPI-U for the Dallas -Fort Worth geographical region and the U S City Average are discontinued during the term of this lease, the remaining rental adjustments called for in this section shall be made using the statistics of the Bureau of Labor Statistics of the United States Department of Labor that are most nearly comparable to the CPI-U applicable to the Dallas -Fort Worth geographical region If the Bureau of Labor Statistics of the United States Department of Labor ceases to exist or ceases to publish statistics concerning the purchasing power of the consumer dollar during the term of this lease, the remaining rental adjustments called for in this section shall be made using the most nearly comparable statistics published by a recognized financial authority selected by Lessor V. RIGHTS AND OBLIGATIONS OF LESSEE A USE OF LEASED PREMISES Lessee is granted the non- exclusive privilege to engage in or provide the following 1 Hangar Leases and Rental The rental or lease of hangars and hangar space and related facilities upon the leased premises 2 Office Space Lease or Rental The rental or lease of office space in or adjoining Lessees hangars 3 Aircraft and Storage To provide storage of both Lessee's and sublessees' aircraft and aviation related equipment and supplies upon or within the leased premises 4 Aircraft Maintenance To perform aircraft maintenance on BROWN LEASE AGREEMENT DOC - Page 6 Lessee's and General Aviation aircraft upon the leased premises 5 135 Air Taxi Operation To perform 135 Air Taxi Operations with Lessee's aircraft Lessee, his tenants and sublessees shall not be authorized to conduct any services not specifically listed in this agreement The use of the leased premises of Lessee, his tenants or sublessees shall be limited to only those private, commercial, retail or industrial activities having to do with or related to airports and aviation No person, business or corporation may operate a commercial, retail or industrial business upon the premises of Lessee or upon the Airport without a lease or license from Lessor authorizing such commercial, retail or industrial activity The Lessor shall not unreasonably withhold authorization to conduct aeronautical or related services B STANDARDS Lessee shall meet or exceed the following standards 1 Address Lessee shall file with the Airport Manager and keep current his mailing addresses, telephone numbers and contacts where he can be reached in an emergency 2 List Lessee shall file with the Airport Manager and keep current a list of his tenants and sublessees 3 Conduct Lessee shall contractually require his employees and sublessees (and sublessee's invitees) to abide by the terms of this agreement Lessee shall promptly enforce his contractual rights in the event of a default of such covenants 4 Utilities, Taxes and Fees Lessee shall meet all expenses and payments in connection with the use of the Premises and the rights and privileges herein granted, including the timely payment of utilities, taxes, permit fees, license fees and assessments lawfully levied or assessed 5 Laws Lessee shall comply with all current and future federal, state and local laws, rules and regulations which may apply to the conduct of business contemplated, including rules, regulations and ordinances promulgated by Lessor, and Lessee shall keep in effect and post in a prominent place all necessary and/or required licenses or permits 6 Maintenance of Property Lessee shall be responsible for the maintenance, repair and upkeep of all property, buildings, structures and improvements, including the mowing or elimination of grass and other vegetation on BROWN LEASE AGREEMENT DOC - Page 7 the Premises, and shall keep said Premises neat, clean and in respectable condition, free from any ob7ectional matter or thing Lessee agrees not to utilize or permit others to utilize areas on the leased premises which are located on the outside of any hangar or building for the storage of wrecked or permanently disabled aircraft, aircraft parts, automobiles, vehicles of any type, or any other equipment or items which would distract from the appearance of the leased premises Lessee agrees that at no time shall the leased premises be used for a flea market type sales operation 7. Painting of Buildings During the original term of this Lease and during each extension, Lessor shall have the right to require, not more than once every five years, that the metal exterior of hangar(s) or building(s) located on the premises be reviewed by the Airport Advisory Board for the purpose of determining whether painting of the exteriors of such buildings or hangars is necessary If the Airport Advisory Board determines painting is necessary, it shall furnish a recommendation to this effect to the City Council The Council, may, upon the Board's recommendation, require Lessee to repaint said exteriors according to Lessors specifications (to specify color of paint, quality of workmanship and the year and month in which the hangar(s) or building(s) are to be painted, if needed ) Lessee shall complete the painting in accordance with such specifications within one (1) year of receipt of notice from lessor Lessee agrees to pay all costs and expense involved in the hangar or building painting process Failure of Lessee to complete the painting required by Lessor's City Council within one (1) year period shall constitute Lessee's default under this Lease S Unauthorized use of premises Lessee may not use any of the leased land or premises for the operation of a motel, hotel, restaurant, private club or bar, apartment house, or for industrial, commercial or retail purposes, except as authorized herein 9 Dwellings It is expressly understood and agreed that no permanent dwelling or domicile may be built, moved to or established on or within the leased premises nor may lessee, his tenants, invitees, or guests be permitted to reside or remain as a resident on or within the leased premises or other airport premises to Quit Possession Lessee shall quit possession of all premises leased herein at the end of the primary term of this lease or any renewal or extension thereof, and BROWN LEASE AGREEMENT DOC - Page 9 deliver up the premises to Lessor in as good condition as existed when possession was taken by Lessee, reasonable wear and tear excepted 11 Hold Harmless Lessee shall indemnify and hold harmless Lessor from and against all loss and damages, including death, personal in3ury, loss of property or other damages, arising or resulting from the operation of Lessee's business in and upon the leased premises 12 Chemicals Lessee agrees to properly store, collect and dispose of all chemicals and chemical residues, to properly store, confine, collect and dispose of all paint, including paint spray in the atmosphere, and paint products, and to comply with all Local, State and Federal regulations governing the storage, handling or disposal of such chemicals and paints 13 Hazardous Activities Should Lessee violate any law, rule, restriction or regulation of the City of Denton or the Federal Aviation Administration, or should the Lessee engage in or permit other persons or agents to engage in activities which could produce hazards or obstruction to air navigation, obstructions to visibility or interference with any aircraft navigational aid station or device, whether airborne or on the ground, then Lessor shall state such violation in writing and deliver written notice to Lessee or Lessee's agent on the leased premises, or to the person(s) on the leased premises who are causing said violation(s), and upon delivery of such written notice, Lessor shall have the right to demand that the person(s) responsible for the violation(s) cease and desist from all such activity creating the violation(s) In such event, Lessor shall have the right to demand that corrective action, as required, be commenced immediately to restore the leased premises into conformance with the particular law, rule or aeronautical regulation being violated Should Lessee, Lessee's agent, or the person(s) responsible for the violation(s) fail to cease and desist from said violation(s) and to immediately commence correcting the violation(s), and to complete said corrections within twenty-four (24) hours following written notification, then Lessor shall have the right to enter onto the leased premises and correct the violation(s), and Lessor shall not be responsible for any damages incurred to any improvements on the leased premises as a result of the corrective action process C SIGNS During the term of this Agreement, Lessee shall have the right, at its own expense, to place in or on the leased Premises signs identifying Lessee Said signs shall be of a size, shape and design, and at a location or locations, approved BROWN LEASE AGREEMENT DOC - Page 9 by the Lessor and in conformance with any overall directional graphics or sign program established by Lessor for the Airport Lessor's approval shall not be withheld unreasonably Said signs shall be maintained in good repair throughout the term of this agreement Notwithstanding any other provision of this agreement, said signs shall remain the property of Lessee Lessee shall remove, at its expense, all lettering, signs and placards so erected on the premises at the expiration of the term of this Agreement or extensions thereof VI COVENANTS BY LESSOR Lessor hereby agrees as follows A PEACEFUL ENJOYMENT That on payment of rent, fees, and performance of the covenants and agreements on the part of Lessee to be performed hereunder, Lessee shall peaceably hold and enjoy the leased premises and all rights and privileges herein granted, B COMPLIANCE Lessor warrants and represents that in the establishment, construction and operation of said Denton Municipal Airport, that Lessor has heretofore and at this time is complying with all existing rules, regulations, and criteria distributed by the Federal Aviation Administration, or any other governmental authority relating to and including, but not limited to, noise abatement, air rights and easements over adjoining and contiguous areas, over -flight in landing or takeoff, to the end that Lessee will not be legally liable for any action of trespass or similar cause of action by virtue of any aerial operations of adjoining property in the course of normal take -off and landing procedures from said Denton Municipal Airport, Lessor further warrants and represents that at all times during the term hereof, or any renewal or extension of same, that it will continue to comply with the foregoing VII. SPECIAL CONDITIONS It is expressly understood and agreed by and between Lessor and Lessee that this lease agreement is subject to the following special terms and conditions A RUNWAYS AND TAXIWAYS That because of the present thirty thousand (30,000) pound continuous use weight bearing capacity of the runway and taxiways of the Airport, Lessee herein agrees to limit all aeronautical activity including landing, take -off and taxiing, to aircraft having an actual weight, including the weight of its fuel, of thirty thousand (30,000), until such time that the runway and designated taxiways on the Airport have been improved to handle aircraft of such excessive weights It is further agreed that, based on qualified engineering studies, the weight restrictions and provisions of this clause may be adjusted, up or down, and that Lessee agrees to abide by any such changes or BROWN LEASE AGREEMENT DOC - Page 10 revisions as such studies may dictate "Aeronautical Activity" referred to in this clause shall include that activity of the Lessee or its agents or subcontractors, and its customers and inviteesi, but shall not include those activities over which it has no soliicitory part or control, such as an unsolicited or unscheduled or emergency landing A pattern of negligent disregard of the provisions of this section shall be sufficient to cause the immediate termination of this entire Agreement and subject Lessee to liability for any damages to the Airport that might result VIll. LEASEHOLD IMPROVEMENTS A REQUIREMENTS Before commencing the construction of any improvements upon the premises, Lessee shall submit 1 Documentation, specifications, or design work, to be approved by the Lessor, which shall establish that the improvements to be built or constructed upon the leased premises are in conformance with the overall size, shape, color, quality and design, in appearance and structure of the program established by Lessor on the Airport 2 All plans and specifications showing the location upon the premises of the proposed construction, 3 The estimated cost of such construction No construction may commence until Lessor, acting by its City Council, has approved the plans and specifications and the location of the improvements, the estimated costs of such construction and the agreed estimated life of the building or structure Approval by the City Council shall not be unreasonably withheld, should the Council fail to deny Lessee's plans and specifications within sixty (60) days of submission thereof to the Council, such plans and specifications shall be deemed approved Documentary evidence of the actual cost of construction on public areas only (such as taxiways) shall be delivered by Lessee to Lessor's City Manager or his designee from time to time as such costs are paid by Lessee, and Lessor's City Manager or his designee is hereby authorized to endorse upon a copy of this lease filed With the City Secretary of Lessor such actual amounts as he shall have found to have been paid by Lessee, and the findings of the City Manager when endorsed by him upon said contract shall be conclusive upon all parties for all purposes of this agreement BROWN LEASE AGREEMENT DOC - Page 11 B ADDITIONAL CONSTRUCTION OR IMPROVEMENTS Lessee is hereby authorized to construct upon the land herein leased, at his own cost and expense, buildings, hangars, and structures, that Lessor and Lessee mutually agree are necessary for use in connection with the operations authorized by this lease, provided however, before commencing the construction of any improvements upon the premises, Lessee shall submit plans and specifications for approval by Lessor as specified in Article VIII A , above C OWNERSHIP OF IMPROVEMENTS All buildings and improvements constructed upon the premises by Lessee shall remain the property of Lessee unless said property becomes the property of Lessor under the following conditions, terms and provisions 1 Removal of Buildings No building or permanent fixture may be removed from the premises 2 Assumption All buildings and improvements of whatever nature remaining upon the leased premises at the end of the primary term, or any extension thereof, of this lease shall automatically become the property of Lessor absolutely in fee without any cost to Lessor 3 Building Life It is agreed that the life of the building to be constructed by Lessee on the property herein leased is thirty (30) years 4 Cancellation Should this lease be cancelled for any reason before the end of the thirty (30) year expected building life, it is especially understood and agreed that Lessor reserves the right to purchase all buildings, structures and improvements then existing upon the premises by tendering to Lessee one thirtieth (1/30) of the undepreciated value of such building for each year remaining on the agreed life of such building The undepreciated value of all improvements is to be determined by having such improvements appraised by three appraisers, one appointed by Lessor, one appointed by Lessee and one appointed by the two appraisers IX. SUBROGATION OF MORTGAGEE A 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, structure, building or improvement shall, upon default of Lessee's obligations to said mortgagee, have the right to enter upon said leased premises and operate or manage said hangar, structure, building or improvement according to the terms of this Agreement, for a period not to exceed the full, f the hevemortgage comes with Lessee, or until the loan is paid BROWN LEASE AGREEMENT DOC - Page 12 first, but in no event longer than the term of this lease It is expressly understood and agreed that the right of the mortgagee referred to herein is limited and restricted to those improvements constructed with funds borrowed from mortgagee, those improvements purchased with the borrowed funds, and those improvements pledged to secure the refinancing of the improvements B Lessee shall have the right to place a first mortgage lien upon the leasehold in an amount not to exceed eighty-five percent (85%) of the construction cost or current market value of the leasehold improvements X. RIGHT OF EASEMENT Lessor shall have the right to establish easements, at no cost to Lessee, upon the leased ground space for the purpose of providing underground utility services to, from or across the airport property or for the construction of public facilities on the Airport However, any such easements shall not interfere with Lessee's use of the leased premises and Lessor shall restore the property to original condition upon the installation of any utility services on, in, over or under any such easement or the conclusion of such construction Construction in or at the easement shall be completed within a reasonable time XI. ASSIGNMENT OF LEASE Lessee expressly covenants that it will not assign this lease, convey more than ten percent (1o%) of the interest in his business, through the sale of stock or otherwise, transfer, license, nor sublet the whole or any part of the said premises for any purpose, except for rental of hangar space or tie -down space, without the written consent of Lessor Lessor agrees that it will not unreasonably withhold its approval of such sale, sublease, transfer, license, or assignment of the facilities for the airport related purposes, provided however, that no such assignment, sublease, transfer, license, sale or otherwise shall be approved if the rental, fees or payments, received or charged are in excess of the rental or fees paid by Lessee to Lessor under the terms of this lease, for such portion of the premises proposed to be assigned, subleased, transferred, licensed, or otherwise The provisions of this lease shall remain binding upon the assignees, if any, of Lessee XII. INSURANCE A REQUIRED INSURANCE Lessee shall maintain continuously in effect at all times during the term of this agreement, at Lessee's expense, the following insurance coverage 1 Comprehensive general liability covering the leased BROWN LEASE AGREEMENT DOC - Page 13 premises, the Lessee or its company, its personnel, and its operations on the airport 2 Aircraft liability to cover all flight operations of Lessee 3 Fire and extended coverage for replacement value for all facilities used by the Lessee either as a part of this agreement or erected by the Lessee subsequent to this agreement 4 Liability insurance limits shall be in the following minimum amounts Bodily Injury and Property Damage One Million Dollars ($1,000,000) combined single limits on a per occurrence basis 5 All l shalles nameeCity of Denton additional named and provide for aminimum of the thirty (30) days written notice to the City prior to or lapse of such effective date of any cancellation policy 6 All policies must be approved by the Lessor 7 The Lessor shall be provided with a copy of all such policies and renewal certificates During the term of this lease, Lessor herein reserves the right to adjust or increase the liability insurance amounts required of the Lessee, and to require any additional rider, provisions, or certificates of insurance, and Lessee hereby agrees to provide any such insurance requirements as may be required by Lessor; provided however, that any requirements shall be commensu- rtwith insurance samerequirements lar to DentonMunicother palAirports in ze uairportsse and in scope of aviation activities, located in the southwestern region of the United States Lessee herein agrees to comply with all increased or adjusted insurance requirements that may be required by the Lessor throughout the original or extended term of this lease, including types of insurance and monetary amounts or limits of insurance, and to comply with said insurance requirements within sixty (60) days following the receipt of a notice in writing from Lessor stating the increased or adjusted insurance requirements Lessee shall have the right to maintain in force both types of insurance and amounts of insurance, which exceed Lessor's minimum insurance requirements In the event that State law should be amended to require types of insurance and/or insurance amounts which exceed those of like BROWN LEASE AGREEMENT DOC - Page 14 the or similar public use airports in the southwest Lessorgshallfhave United states of America, then in such event, maintain es of the right to require that Lessee ecified by State w insurance and/or amount of insurance as sP specified amounts Failure of Lessee to comply with the minimum sp or types of insurance as required by Lessor shall constitute Lessee's default of this Lease XIII. CANCELLATION BY LESSOR In the event that Lessee shall file a voluntary petition in bankruptcy or proceedings in bankruptcy shall be instituted pursuant against it and Lessee for ream ecourt r is a shall ataketed b jurisd ankrupt c ion of to such proceedings, proceedings Lessee and its assets pursuant to P s brought under the or Lessee shall be provisions of any Federal reorganization act, divested of its estate herein by other operation ofolawthe r termse shall fail to perform, keep and observe or noy its part to be covenants, or conditions herein contained,to performed, the Lessor may give Lessee written noticeycondition correct such condition or cure such default and, if any default shall continue fthenhLessor3may t rminate this days after the receipt lease by such notice by Lessee, written notice has the to Lessee In the event of default, Lessor Bed remises on right to purchase any or all structures ra htCe4 le(Cancellation) under the provisions of Section VIII Parag P hereof XIV. CANCELLATION BY LESSEE Lessee may cancel this Agreement, in whole or part, and termi- nate all or any of its obligations hereunder at any en n of thirty (3o) days written notice, upon or after theahaPP court of any one of the following events (1)lssuance by y competent jurisdiction of a permanent injunction in any way preventing or restraining the usetrie breach said abyPLessor oort or f any of thereof for airport purposes, (2) the the covenants or agreements contained erodnotnninety failure (9o) days Lessor to remedy such breach for a p after receipt of a written notice of the existence oand ufacilities (3) the in foYlaylongerof ssee to use sai peri d than ni e P (go) days due to any continuing order, rule or regulation of any appropriate law or anyIng urisdiction over the operations tof governmental authority hearthquake or other casualty, Lessor or due the o war, ny assumption or recapture by the United States Governmeerat�on aof authorized agency thereof, of the maintenance and a P or parts said airport and facilities or any substantial p thereof the four events listed in the Upon the happening of any of BROWN LEASE AGREEMENT DOC - Page 15 preceding paragraph, such that the leased premises cannot be used for aviation purposes, then the Lessee may cancel this lease as aforesaid, or may elect to continue this lease under its terms, except, however, that the use of the leased premises shall not be limited to aviation purposes, theiruse being gat thonly limited by such laws and ordinances as may be applicable me XV. MISCELLANEOUS PROVISIONS A ENTIRE AGREEMENT This Agreement constitutes the entire underatandi between the parties and as of its effective date arties supersedes all prior or independent Agreementschangebetween ormodefpcation covering the sub3ect matter hereof both hereof shall be in writing signed by parties B BINDING EFFECT All covenants, stipulations and agreements herein shall and inure to the legal representatives, successors d benefit uccessorsand assigns of the respectivehparties hereto C SEVERABILITY if a provision hereof shall be finally declared �voidor illegal by any court Agreement nnotrative v agency having jurisdiction, the entire d, but the remaining provisions shall continue in effect as nearly as possible in accordance with the original intent of the parties 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 1 If to Lessor, addressed to City Manager City of Denton 215 E McKinney Street Denton, Texas 76201 2 If to Lessee, addressed to Mr John Brown, President Triangle Aviation, Inc 11505 Airway Boulevard Roanoke, TX 76262 Notices shall be deemed to have been received on the date of receipt as shown on the return receipt E HEADINGS The headings used in this Agreementnot defin are intended for convenienceof reference r lyofand hd Agreement e or limit the scope or meaning of an provision BROWN LEASE AGREEMENT DOC - Page 16 F GOVERNING LAW This Agreement is to be construed in accordance with the laws of the State of Texas court of G MEDIATION Prior to instituting suit in a in good faith attempt competent ] adiction, the parties shall, to settle any controversy or claim by any party hereto arising out by of or relating to this Agreement mediation in accordance with the laws and rules, then obtaining, of the State of Texas and the State Bar of Texas default Or breachHNofWAIVER panto or 1 term of waver by Lessor this leaseLessee oa may beny t eated as a waiver of any subsequent default or breach of the same or any other covenant or term of this Agreement times that this Lease is I INDEPENDENT CONTRACTOR During agent or in effect, the parties agree that Lesseeo erator aandahnot an ag n to be an independent contractor and p emns ployee of the Lessor with respect to theirLesseethat and shallbe hereunder For all the purposes hereunder, be deemed or construed to deemed an independent contractor and it is mutually agreed t a nothing contained herein shall parties constitute a partnership or ]oint venture between the IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written CITY OF DENTON, TEXAS, LE55Ux BY HOWARD MARTIN, I TERIM CITY MANAGER ATTEST JENNIFER WALTERSTY SECRETARY CITY OF DENTON, TEXAS BY 1�r BROWN LEASE AGREEMENT DOC - page 17 APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY CITY OF DENTON, TEXAS ME TRIANGLE AVIATION, INC BY*'P/11 'J u, �J TITLE tI.4'S I we '± THE STATE OF TEXAS § COUNTY OF DENTON § This instrument was acknowledged before me on the�day of 2001 by LESSEE JEANETTE SCOTT PUBLIC 4NY-ih— S TATE OF TEXAS or MYCommissionEX01re603.312001 My Commission Expires BROWN LEASE AGREEMENT DOC - Page 18 ATTACHMENT "A" 1 = 30 30 ASPHALT TAXIWAY 1 /.2 S 88 3610' E _ _ 913 34' I a POH I rrlITry rn I� w IN M la IZ I 1 I WESTERLYSOUTHWEST CORNERS LOT I OC MmR I IF w/c. 130 TAXIWAY DRAINAGE /N I ' / U fILITY EASEMENT I I I S BB 41'08"E 10000 .cc /rAP rn o m o n ao w 0 41 ACRE 3 N N s S0,0 s z W NPGS rn Pg5 N 88 37'34"W 1 JOHN CARREL 22 5 Asphalt Rood 40' . PiWi Ci wxi r o B • vaN+ a B[GNxac 90 vo . vaw+ or <auu[xn.0 30 p 30 -60 qy�__ . OKR xCIA 1114i+v -CAN - . CI E TV LMC i [LCCTMC LNC +[I r'xW LMF 19 I I 1 I I I I I I I I I I H ET.aR °'yjv - - - - - -b ATTACHMENT "B" FIELD NOTES to all that certain tract or parcel of land lying and being situated in the Wiliam Nell Survey Abstract Number 970 in the City of Denton Denton County Texas and bung a part of Lot 1 Block 1 of the Southeast Airport Addition an addition in the City of Denton Denton County Texas according to the plat thereof recorded in Cabinet G Page 295 of the Plat Records of Denton County Texas and being more particularly descnbed as follows COMMFNCING at the most Westerly Southwest Corner of said Lot 1 Block 1 THENCE North 08 Degrees 36 Minutes 21 Seconds East with the West line of said Lot i a distance of 93622 feet THENCE South 88 Degrees 36 Minutes 10 Seconds East a distance of 913 34 feel to a 121nch Iron Rod Found at the Northwest corner of the herein described tract in the South line of a 130 foot taxiway drainage and utility easement THENCE South 88 Degrees 41 Minutes 08 Seconds East wth the North line of the subject tract and the South line of said 130 foot easement a distance of 100 00 feel to a 12Inch Capped Iron Rod Set for the Northeast corner of the herein described tract THENCE South 01 Degrees 22 Minutes 17 Seconds West with the East line of the subject tract a distance of 180 00 feet to 12 Inch Capped Iron Rod Set for the Southeast corner of the herein described tract THENCE North 88 Degrees 37 Minutes 343 Seconds West with the South line of the subject tract a distance of 100 00 feet to a 12 Inch Iron Rod Found for the Southwest corner of the herein described tract THENCE North 01 Degrees 22 Minutes 17 Seconds East with the West line of the subject tract a distance of 179 90 feel to the Pont of Beginning and containing in all 0 41 of an acre of land more or less These field notes with the accompanying sketch were prepared from an on the -ground survey made under my direction and supervision on 03 19-01 FLOOD STATEMENT I have examined the F E M A Flood Insurance Rate Map for the City of Ponder Denton County Texas Community Panel No 480194 effective date 3-30-98 and that map Indicates that this property is in Zone X which is defined as Areas determined to be outside of the 500 year flood as shown on Panel 0355 E of said map )cI h-.�OS O�—Z.o-zwl nor =� p f r- J E THOMPSON Rla L S 4857 Date 20