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HomeMy WebLinkAbout1999-054P Wtuamw WLwur G Wqc M"A La"t"r ORDINANCE NO AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE AN AIRPORT LEASE AGREEMENT BETWEEN THE CITY OF DENTON AND DOUGLAS C WEYER TO LEASE CERTAIN PREMISES OF THE MUNICIPAL AIRPORT FOR THE PURPOSE OF CONSTRUCTING AND MAINTAINING OFFICE AND HANGAR FACILITIES THEREON, 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 airport lease agreement between the City of Denton, Texas and Douglas C Weyer, to lease certain premises of the Municipal Airport for the purposes of and constructing and maintaining an office and hangar facilities thereon, under the terms and conditions contained within this Agreement, which is attached hereto and made a part hereof SECTION 11 That this ordinance shall become effective immediately upon its passage and approval PASSED AND APPROVED this the day of 1999 ATTEST' JENNIFER WALTERS, CITY SECRETARY M APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY BY A4� Q �c`l THE STATE OF TEXAS COUNTY OF DENTON AIRPORT LEASE AGREEME', COMMERCIAL OPERATOR KNOW ALL MEN BY THESE PRESENTS This lease is made and executed this la day of 1999, at Denton, Texas, by and between the City of Denton, Texas, a municipal corporation, hereinafter referred to as "Lessor", a Douglas C Weyer, having his principal offices at P O Box 1322, Lake Dallas, Texas 75065, 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 aeronautical activities for furnishing services to the public is granted to Lessee subject to Lessee agreeing 1 To furnish said services on a fair, equal and not unjustly discriminatory basis to all users thereof, and 2 To charge fair, reasonable and not unjustly 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 represent at ves, 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 Page 1 of 18 \\CX WL\WL1\$WW\DEFY\SAL\Wr WC=*Ots\C ti cte\99\MWlas C Weyer Leaea dOC 1 No person on the grounds of or national origin shall be in, denied the benefits of, discrimination in the use of race, religion, color, sex, excluded from participation or be otherwise subjected to 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 is understood and agreed that nothing herein contained shall be construed to grant or authorize the granting of an exclusive right within the meaning of Title 49 U S C Appendix §1349 E PUBLIC AREAS 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 naval use, and, if such lease is executed, the Page 2 of 18 \\ee WL\WL1\4WW\veer\wL\M1 mwmwc.\mncracu\ze\muscat c serer u.et act 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 agreements 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 15,235 square feet, or 0 350 acres, drawn and outlined on Attachment "A" as Tract 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 Lessor agrees to provide, at Lessor's so a cost and expense, pavement rehabilitation of "Taxiway J2 " Rehabilitation shall consist of at least two (2) inches of asphalt overlay 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 Page 3 of 18 \\CM IOL\y011�91W1W�09IT\1AL�Ou[ MCumente�Cont[acte\99\Mu91aY C Weyer baae doc 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 IMPROVEMENTS PROVIDED BY LESSEE On said lot, Lessee shall construct a T-hangar and office facility not less than 13,000 square feet with taxiway access (stubs) and appropriate culverts or drainage as required by City ordinances in the utility right of way north and south of the proposed hangar as well as other improvements as shown on the site plan attached hereto and made a part hereof for all purposes and identified as Attachment "D 11 Lessee shall also construct an access taxiway, north of the proposed T-hangar, connecting the development to Taxiway J Said taxiway shall be constructed of concrete and meet a weight bearing capacity of at least 15,000 pounds Lessor agrees that Lessee may deny access to the proposed taxiway Lessee constructs pursuant to this Lease to the tenants, their invitees, and customers (tenants), of the property directly across from Lessee's tracts under this Lease However, Lessee shall provide access to the taxiway being constructed per this lease to the tenant(s) across from Lessee's tract if such tenants agree to pay to Lessee an assessment for use of such taxiway in the amount of 50% of the certified costs (as mutually determined by Lessee and Lessor after completion of taxiway improvements and including interest on such costs) of the construction of such taxiway based on a front footage charge as used in City of Denton Street Paving Pro3ects D EASEMENTS Lessor and Lessee by mutual agreement may establish, on the leased premises, easements for public access on roads and taxiways E ACCESS TO UTILITIES 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 III. TERM The term of this Agreement shall be for a period of thirty (30) years, commencing on the 15th day of February, 1999, and continuing through the 14°h day of February, 2029, unless earlier terminated under the provisions of the Agreement Any attempt by Lessee to renegotiate this Lease shall be in writing addressed to the City Manager 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) Page 4 of 18 \\cx wNwnt\"UW\DZK\Wu\our WCW G=.\m tracc0\99\WW118 c xayar Laaia Eoc 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 Lessee shall pay to the Lessor for the use and occupancy of the Premises the sum of eight cents ($0 08) per square foot per year, for a total of $1,218 80 per year and shall be due and payable in twelve (12) equal monthly installments in the sum in advance, on or before the 15th day of each and every month during the term of this agreement Lessee may have the option to pay annual rentals and fees in whole on or before the 15th day of October 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, times the number of square feet comprising all easements established in accordance with Article II(D) B LESSOR IMPROVEMENTS RENTALS NONE There are no Lessor improvements on the leased premises C PAYMENT PENALTY ADJUSTMENTS All payments due Lessor from Lessee s a 1 e ma a to Lessor at the offices of the Finance Department of the City of Denton, Accounts Receivable, 215 E McKinney, 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 15th day of February, beginning 2000, and every year thereafter on such date The adjustments in the yearly rent shall be determined by Page 5 of 18 F \9H 8D\OYIT\WL\Wr Wc=Wt9\C ntract.\99\Wv91ae C WO r LNea Etc 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 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 ten (10) 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 an ar Leases and Rental The rental or lease of hangars an angar space and related facilities upon the leased premises Page 6 of 18 \\cx ia�\wm\gxAq®\oser\wNwr mcumence\mucrecve\cs\�ie6 c we"r i see sec 2 Office Space Lease or Rental The rental or lease of o f ce space in or ad]olning Lessee's hangars 3 Aircraft and Storage To provide storage of both Lessee's and sublessee es aircraft and aviation related equipment and supplies upon or within the leased premises 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 expen- ses and payments in connection with the use of the Premi- ses 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 Page 7 of 18 \\CH WL\WLl\SHAH=\089T\WL\Nr Ncu to\Contracte\99\M IaO C Weyer Leaea aoc the maintenance, repair and upkeep of all property, buildings, structures and improvements, including the mowing or elimination of grass and other vegetation on the Premises, and shall keep said Premises neat, clean and in respectable condition, free from any objectionable matter or thing Lessee shall be responsible for the maintenance of all new hangar taxiway stubs, connecting the Hangar to Taxiway J2 on the south and the proposed public taxiway located north of the T-hangar development 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 8 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 Page 8 of 18 P \6HARBP\08P'1'\]9L\W[ McumOnCe\ConC[ec[B\99\We91ee C payer Leeee da 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 10 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 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 Page 9 of 18 \\cM ins\WL1\9Mna®\Deer\�\our Wo mans\mncracr.\9901*. c Mayer w.o me any damages incurred to any improvements on the leased premises as a result of the corrective action process D 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 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 sixty thousand 60,000 pound continuous use weight bearing capacity of the runway and certain 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 Page 10 of 18 \\eM UJt\va��\ewaw\oBMYIAL\wr oocuaunc.\concrete\ss\Douglas c w.yev n.... aoc the weight of its fuel, of sixty thousand (60,000) pounds or less, until such time that the runway and designated taxiways on the Airport have been improved to handle aircraft of such excessive weights Additionally, the weight bearing capacity of the access taxiway adjacent to the leased premises is fifteen (15) thousand (15,000) pounds 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 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 invitees, but shall not include those activities over which it has no solicitory 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 VIII. LEASEHOLD IMPROVEMENTS A REQUIREMENTS Before commencing the construction of any improvements upon the premises, Lessee shall submit 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 All plans and specifications showing the location upon the premises of the proposed construction, 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 from time to time as such costs are paid by Lessee, and Lessor's City Manager 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 Page 11 of 18 \\CM 14L\V011\81WI8D\DBFf\lAL\Ou[ MewnenCa\Cbn[[ac[e\99\Nu91aa C Neyer Leaea Eoc purposes of this agreement 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 or desirable 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 Buildin s No building or permanent fixture may be remove 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 Buildin Life It is agreed that the life of the bu i. ng 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, Page 12 of 18 \\CM WL\VOLT\S M®\OZMWL\Our MCup to\W ti cts\99\W lss C XeyOr LBe00 dOC structure, building or improvement according to the terms of this 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 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 (10%) 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 uring the term of this agreement, at Page 13 of 18 \\CH WL\WLl\SHAH®\nKPT\WL\Wr Coco tG\CentrGCte\99\M I&. C Weyer Lea.. aor Lessee's expense, the following insurance coverage 1 Comprehensive general liability covering the leased 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 policies shall name the City of Denton as an additional named insured and provide for a minimum of thirty (30) days written notice to the City prior to the effective date of any cancellation or lapse of such 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- rate with insurance requirements at other public use airports similar to the Denton Municipal Airport in size 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 Page 14 of 18 \\CM 1aL\WLl\BHLR®\UBfT\1AL\Ou[ Mewnante\Nntzec[e\99\Couglse C Nryei l.... Goc In the event that State law should be amended to require types of insurance and/or insurance amounts which exceed those of like or similar public use airports in the southwestern region of the United States of America, then in such event, Lessor shall have the right to require that Lessee maintain in force types of insurance and/or amount of insurance as specified by State law Failure of Lessee to comply with the minimum specified amounts 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 against it and Lessee thereafter is ad]udicated bankrupt pursuant to such proceedings, or any court shall take Durisdiction of Lessee and its assets pursuant to proceedings brought under the provisions of any Federal reorganization act, or Lessee shall be divested of its estate herein by other operation of law, or Lessee shall fail to perform, keep and observe any of the terms, covenants, or conditions herein contained, or on its part to be performed, the Lessor may give Lessee written notice to correct such condition or cure such default and, if any condition or default shall continue for thirty (30) days after the receipt of such notice by Lessee, then Lessor may terminate this lease by written notice to Lessee In the event of default, Lessor has the right to purchase any or all structures on the leased premises under the provisions of Section VIII Paragraph C 4 (Cancellation) hereof XIV. CANCELLATION BY LESSEE Lessee may cancel this Agreement, in whole or part, and terminate all or any of its obligations hereunder at any time, by thirty (30) days written notice, upon or after the happening of any one of the following events (1) issuance by any court of competent 3urisdiction of a permanent inDunction in any way preventing or restraining the use of said airport or any part thereof for airport purposes, (2) the breach by Lessor of any of the covenants or agreements contained herein and the failure of Lessor to remedy such breach for a period of ninety (90) days after receipt of a written notice of the existence of such breach, (3) the inability of Lessee to use said premises and facilities continuing for a longer period than ninety (90) days due to any law or any order, rule or regulation of any appropriate governmental authority having 3urisdiction over the operations of Lessor or due to war, earthquake or other casualty, or (4) the assumption or recapture by the United States Government, or any authorized agency thereof, of the maintenance and operation of said airport and facilities or any substantial part or parts Page 15 of 18 \\CN IOL\WLI\$HpRBO\06Ff\IQL\OYC MC1MCflG 6\CW2ZCC Ce\99\WWJ1pB c xeyem Le.ee aoc thereof Upon the happening of any of the four events listed in the 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, their use being only limited by such laws and ordinances as may be applicable at that time XV. MISCELLANEOUS PROVISIONS A ENTIRE AGREEMENT This Agreement constitutes the entire understanding Between the parties and as of its effective date supersedes all prior or independent Agreements between the parties covering the sub]ect matter hereof Any change or modification hereof shall be in writing signed by both parties B BINDING EFFECT All covenants, stipulations and agreements herein s all extend to, bind and inure to the benefit of the legal representatives, successors and assigns of the respective parties hereto C SEVERABILITY If a provision hereof shall be finally declared voi or i legal by any court or administrative agency having jurisdiction, the entire Agreement shall not be void, 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 on connection w th this agreement shall be sent by registered mail, return receipt and registration fees prepaid as follows If to Lessor, addressed to City Manager City of Denton 215 E McKinney Street Denton, Texas 76201 2 If to Lessee, addressed to Mr Douglas C Weyer P O Box 1322 Lake Dallas, TX 75065 e party to the other in in writing and shall be requested, with postage Notices shall be deemed to have been received on the date of receipt as shown on the return receipt Page 16 of 18 ��w wL\wL,\ewueo\nerr\=\ar v mence\Wncrecce\5e\o I*. c Weyer u ee mr E HEADINGS The headings used in this Agreement are intended for convenience of reference only and do not define or limit the scope or meaning of any provision of this Agreement F GOVERNING LAW This Agreement is to be construed in accordance with the laws of the State of Texas G MEDIATION The parties may agree to settle any disputes under this'— lease by submitting the dispute to mediation or other means of alternate dispute resolution No mediation or alternate dispute resolution, arising out of or relating to this lease, involving one party's disagreement may include the other party to the disagreement without the other's approval H NO WAIVER No waiver by Lessor or Lessee of any default or breach of covenant or term of this lease may be treated as a waiver of any subsequent default or breach of the same or any other covenant or term of this Agreement I INDEPENDENT CONTRACTOR During all times that this Lease is in effect, the parties agree that Lessee is and shall be deemed to be an independent contractor and operator and not an agent or employee of the Lessor with respect to their acts or omissions hereunder For all the purposes hereunder, Lessee is and shall be deemed an independent contractor and it is mutually agreed that nothing contained herein shall be deemed or construed to constitute a partnership or ]oint venture between the parties IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written CITY OF DENTON, TEXAS LESSOR B) ATTEST: JENNIFER WALTERS, CITY SECRETARY BY AP OVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY BY Page 17 of 18 P \9XAP®\DBM'\SF/L\4Vi MNmblCi\CanC[ecte\99\Wu91ee C peyes Levee Uoc THE STATE OF TEXAS § COUNTY OF DENTON § This instrument was acknowledged before me on the C? �vday of 1999 by LESSEE TONIREEDY NOTARY PUBLIC STATE OF TEXAS Commission Expires 3-21-2002 Q O ARY PUBLIC, ST F TEXAS My omm slop Ex 1r s P \9XM2O\OBK\LGL\Qsr Mcm to\Wsrracte\99\Mu 138 C Weyer Lease doc Page 18 of 18 ATTACHMENT "A" aj 8 � ; E SA00 _ F ---- --� h f N012J50F i I 5500 A I I to I � I w � I I I cr, o r l I to I mn I I I Iti I I I I I I I I I I I S012J50'W 5500, " I r _ n 0 ROAD ---- _ - - - F� � 3 11 Sol 7150W 75 ]I II 1 S Z9 a ATTACHMENT "B" REto N07E OESCRIP7701V Being a OJ50 acre tract of land situated in the N4lliam Nell Survey Absbocf No 970 Cif) of Denton, Denton County, rexos and being o portion of Lot ! Black 1 of Southeast Airport Addition on addition to the City of Denton texas, accord/ng fo the Mop or Plot !hereof recorded In Cabinet G, page 295 of (he Plot Records of Denton County, rexas, said OJSO acre tract being more particularly described as follows COMMENCING al J inch disk for the wesfemmost southwest comer of said Lot 1, some being the South 08 degrees J6 minutes 2! seconds West a distance of 161009 feet from a J inch disk for the northwest corner of said tot 1, )HENCE South 88 degrees ,16 minutes 10 seconds lost, a distance of 18576 feet to a J inch disk for on eh corner of said Lot i ,HENCE South Of degrees 21 mmules 50 seconds West, along the west line of said Lot 1, a distance of 2701J feet to a point sold point being North 01 degrees 2J minutes 50 seconds East, o dtsfonce of 547JO feet from the southemmosf southwest comer of sold Lof !, IHENCE South 88 degrees J6 minutes 10 seconds East over and across sold tot 1, a distance of J25 00 feet to an iron rod set for the POINr OE BEGINNINC same being the northwest comer of the herein described tract and being South Ol degrees 2J minutes 50 seconds Wes( a distance of 75?4 feel from on Iron rod found HHENCE continuing over and across said Lot 1 the following calls South 88 degrees J6 minutes 10 seconds Cost a distance of 27700 to on van rod set for the northeast comer of the herein described tract, South 01 degrees 2J minutes 50 seconds West a distance of 55 00 feet to on von rod set for the southeast comer of the herein described tract North 88 degrees J6 mmules 10 seconds Most a distance of 27700 feet to on iron rod set for the southwest corner of the herein described tract, North Ol degrees 2J minutes 50 seconds Eosf, o distance of 5500 feel 10 the POINT Or BEGINNING and containing 0J50 acres or 15,2J5 square feel of land more or less and being subject to any and aIf easements that may affect FLOOD NOTE R IS MY OPINION THAT TIIE PROPERTY DESCRIBED HEREIN__ IS NOT ____ WITHIN A SPECIAL FLOOD HAZARD AREA ACCORDING TO THE FEDERAL EMERGENCY MANAGEMENT AGENCY FLOOD INSURANCE RATE MAP, COMMUNITY -PANEL NO 180194 0J55 £ PRESENT EFFECTNE DATE OF MAP -ARIL-2 -!997 __, HEREIN PROPERTY SITUATED WITHIN ZONE — r 3AI80 AMID JNIISIX3 'W I WN rc ob___ Q� 1 m J �] N U W � W dG� 8 zs 0 t d T �s JM rrv(1 ,,u„ LLgaWRDVJ V 7c : M r�v v /Vel 5ov1 A lkpo r i"- Mr, DC V40 M �m V)ey(f,v -:E: 4,cw f- . G J , "�"(AY / w (I C os t 5 , Cch-e_ �1RoLt `x Goa �S C/ J `� fU�-t.-�.• c ��.e Joy- 42.- r- "�2I ✓to52-..1 fl i�-f/ W (0-4. �ilv�� X C e� r C�'{ 1 QSZJ✓' tiC�� V /J) /l..•i�� vOl/L4?-e�-, G� Vrl r.� 1-C��- �! ! !' `.� -"� Cl0 � ? � � � Y,7" G� ' �..�w�y d V a Y!_,k, 1.'. V.I J l ,q°o Y, 1)� # a i l �.1.L1-�-� �..a(,e�..�e � �'(J-C� �I i n C �C.Q,.�'•2/+LLr�FC'r G,0'1%'(,lC.��"Lu C�%e•.-�:.Olyn��,0�,,,._� dV.��� ( i'C .� i.l � / iQI��F'-�j 1...�'ir�i1%U�,"f.G� 2�(,MLSSJneL rxutivt)-4wn .2 ,cu ds yJ U r-v Yh �- � 21 81.` uvi �l cost Nu�t� ►L) Cz CONTRACTOR PART C PROPOSAL Calvert Paving Corporation P 0 Box 268 Denton,TA 76202 DATE April 16,1999 PAGE 1 OF 2 SECTION I - PAVING IMPROVEMENTS ITEM DESCRIPTION QTY. UNIT COST/UNIT TOTAL COST 1 Subgrade Preparation 1,945 Sy 3 00 5,835 00 2 Hydrated Lime (6%) 33 1 TON 100 00 3,310 00 3 5" 3600 psi Remf Concrete Pavement 1,885 SY 27 00✓ 50,895 00 4 Seeding 1 AC 500 00 500 00 5 Street Barricades 1 LS 500 00 500.00 TOTAL SECTION I $ 61, 0J001 SY 375 _7(1973 _= 22 )4 3310— } 7L0 170V—IMf.✓o J Sqq 4- 7 (7 7, I PART C PROPOSAL (Con CONTRACTOR- Calvert Paving Corporation P 0 Box 268 Denton,TX 76202 DATE 4/16/99 PAGE 2 OF _ 2 IMPROVEMENTSITEM DESCRIPT UNIT COST/UNIT TOTAL COST 1 7-STORMAGE 18"RCP0 LF 30 00 1,200 00 2 V-Bottom Fl8 SY 30 00 1,673 40 TOTAL SECTION II $2,873 40 BID SUMMARY TOTAL SECTION I $ 61,040 00 TOTAL SECTION II $ 2,873 40 2Year, 100%Maintenance Bond $ 2,00000 TOTAL BID S 65,913 40 Ga�C C�z+ a 72-0 — s" / , cn — z) 54S ` 13