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Home My WebLink About1999-468\\OH LOL\VOLIWrtafWgpWWueAll 1Lew dw ORDINANCENO W-440 AN ORDINANCE AUTHORIZING THE THIRD AMENDMENT TO AIRPORT LEASE AGREEMENT FOR FIXED BASE OPERATION (FBO) ACTIVITY BETWEEN THE CITY OF DENTON AND TEXAS AIR CENTER, INC, AND PROVIDING FOR AN EFFECTIVE DATE WHEREAS, certain real property upon the Denton Municipal Airport was leased to Texas Air Center, Inc, a Texas Corporation, by an Airport Lease Agreement for FBO Activity effective August 30, 1988 and amended on June 7, 1994 and October 6, 1998, and WHEREAS, the City of Denton and the lessee desire to amend the lease agreement again in accordance with Section H of Article IV of the Restated Lease of November 15, 1988, and WHEREAS, the Airport Advisory Board for the City of Denton has recommended approval of the Third Amendment, NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SSECTION 1 That the attached Third Amendment to Airport Lease Agreement for FBO Activity between the City of Denton and Texas Air Center, Inc is approved SECTION 2 That the City Manager is authorized to execute the attached lease amendment on behalf of the City and the City Secretary is directed to affix this ordinance with the executed lease amendment to the Airport Lease Agreement for FBO Activity effective August 30, 1988, inscribing on the original agreement the fact it has been amended and the effective date of this third amendment SECTION 3 That this ordinance shall become effective immediately upon its passage and approval �{�L PASSED AND APPROVED this the / day of Lma&A2 , 1999 ATTEST JENNIFER WALTERS, CITY SECRETARY BY� APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY P V],m VLLGLWutO mmmMammuu\9mTmm Mr C wsnd Msci"MO THIRD AMENDMENT TO AIRPORT LEASE AGREEMENT FOR FIXED BASE OPERATING ACTIVITY BETWEEN CITY OF DENTON AND TEXAS AIR CENTER, INC. STATE OF TEXAS COUNTY OF DENTON WHEREAS, the Tlurd Amendment to Airport Lease Agreement For Fixed Base Operating (FBO) Activity ("Amendment") is entered into by and between the City of Denton ("Lessor") and Texas Air Center, Inc (formerly Air Denton, Inc ) ("Lessee") WHEREAS, on or about August 30, 1988, a lease agreement for FBO Activity ("Airport Lease") by and between the Lessor and Lessee became effective, and WHEREAS, Lessee and Lessor Restated lease on November 15, 1988 and Lessee and Lessor first amended the Airport Lease on June 7, 1994, adopted a Second Amendment on October 6, 1998 and now desire to amend the Airport Lease again in order to comply with Section H of Article V of the Restated Lease regarding operations of the City's fuel farm at the airport, and WHEREAS, this Third Amendment will also provide that tenants at the airport selling fuel are treated in a non-discriminatory manner, NOW, THEREFORE, in consideration of the mutual promises and agreements contained in this Amendment, including the recitals set forth above, the parties agree as follows That Article III, Section C of the Airport Lease as previously amended relating to "Fuel Fees" is hereby amended by repealing such Section C and in lieu thereof adding the terms and conditions set forth in the Letter dated November 17, 1999 to the attention of Jim Huff from Mark Nelson identified as Exhibit "A", which is attached hereto and made a part hereof for all purposes This Third Amendment is intended to amend the provisions of the Airport Lease and the First and Second Amendments thereto only to the extent expressly set forth above All of the terms, covenants, provisions, and conditions set forth in the Airport Lease and First Amendment and Second Amendment are ratified and confirmed except as expressly modified by this Third Amendment This Agreement shall be binding upon and shall inure to the benefit of the respective successors and assigns of Lessor and Lessee Page 1 of 2 P beurelW.ptLLOLWw UoomomY\�99Ti Mr 102Mr Pwftw dm t IN WITNE S WHEREOF, the parties have executed this Third Amendment as of the day of , 1999 ATTEST JENNIFER WALTERS, CITY SECRETARY CITY OF DENTON, LESSOR BY M HAE W JE CITY M AG BY OW TEXAS ^CENTFR, INC, LESSEE APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY THE STATE OF TEXAS COUNTY OF DENTON [in This instrument was acknowledged before me on this the a.'� day of Dwe 1999 by James W Huff, Jr M C. MoMLNANNCN Notary Pubic. Stets of Taxes rN CommWft res jMIs 2003 i Not PPublic, tat of mas-1 CommissionE�pires 8 03 Page 2 of 2 EXHIBI7.1�._.r„ CITY OF DENTON, TEXAS November 17, 1999 Mr Jim Huff, President Texas Air Center, Inc 5007 Airport Road Denton, Texas 76207 Dear Mr Huff DENTON MUNICIPAL AIRPORT TERMINAL B UILDL\ G 5000 AIRPORT RD DENTON, TX 76207 This letter is a follow up to our phone conversation on November, 9 concerning negotiations on the operation of the above ground fuel system and the adjustment of your fuel flowage fee Pursuant to our agreement of May 1998, the lease agreement between the City of Denton and Texas Air Center, Inc will be amended to reflect the negotiated fuel flowage rate and operating responsibilities of the new fueling system The intent of the following agreements will be made to the appropriate sections of your lease Texas Air Center will have the right of ingress and egress and use of the fueling system through August 30, 2019 Texas Air Center will ensure that the fuel level in any tank shall not fall below 2,000 gallons for more than sixty (60) days If this should occur, the City may take over use of said tank, upon reimbursement for the wholesale cost of fuel then in the tank The fueling system shall be operated in compliance with all federal, state, and local regulations Beginning January 1, 2000 Texas Air Center shall pay the City of Denton six percent (6%) of the wholesale price per gallon of fuel delivered to Texas Air Center Commencing September 1, 2009 and continuing through August 30, 2019, Texas Air Center shall pay the City of Denton 7% of the wholesale price per gallon of all fuel delivered to the Lessee Texas Air Center will ensure that the facility will be maintained in a safe, clean and attractive condition Texas Air Center shall be responsible for all general maintenance of said fuel farm including, but not limited to replacement of fuel filters and hoses, repair and general maintenance of piping and electrical service, repair and general maintenance of pumps, recharge of fire extinguishers, grass cutting, repairs to perimeter fencing, trash collection and removal Telephones (940) 349-7736 or 349-7702 Fax (940) 383-7289 Web Address. http•//wrvw.dentonairportcoin "Dedicated to Quahty Service" The City of Denton shall be responsible for the replacement of fuel pumps and piping when required due to normal wear and tear Texas Air Center shall be responsible for the replacement of fuel pumps if it is determined that Texas Air Center's employees or representatives acted in negligence The City of Denton shall be responsible for registration fees as required by Federal or State agencies The City of Denton shall be responsible for the calibration of meters as required by Federal or State regulations The City of Denton shall reserve adequate land to provide for the future expansion of said fueling system to an aggregate capacity of 40,000 gallons Please review these proposed amendments to ensure that there is no misunderstanding concerning the rights and obligations of Texas Air Center, Inc and the City of Denton This information has been submitted to the City Attorney's office for final review The amendment is scheduled for City Council consideration on Tuesday, December 7, 1999 Should you have any questions, please do not hesitate to contact me at 349-7702 Sincerely, � G Mark Nelson Airport Manager PC Mark Huff, Operations Manager, Texas Air Center Linda Ratliff, Director of Economic Development