1996-126avionamd ord
AN ORDINANCE AUTHORIZING THE CITY MANAGER OF THE CITY OF DENTON,
TEXAS TO EXECUTE AN AMENDMENT TO THE COMMERCIAL LEASE AGREEMENT
BETWEEN THE CITY OF DENTON, TEXAS AND AVIONICS INTERNATIONAL
SUPPLY, INC , AND PROVIDING AN EFFECTIVE DATE
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION I That the C~ty Manager is authorized to execute an
amendment to the commercial lease agreement between the City of
Denton, Texas and Avlonlcs International Supply, Inc , under the
terms and condltlons contained w~thln the amendment, which
attached hereto and made a part hereof
SECTION II That th~s ordInance shall become effective
~mmedlately upon 1ts passage and approval
PASSED AND APPROVED this the~/~'~day of .~f'~_ ,
1996
JACK MILLER, MAYOR
ATTEST
N~yF~WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
?
AMENDMENT TO AIRPORT LEASE AGREEMENT BETWEEN
AVIONICS INTERNATIONAL SUPPLY, INC.
AND THE CITY OF DENTON, TEXAS
THE STATE OF TEXAS §
§ KNOW ALL MEN BY THESE PRESENTS
COUNTY OF DENTON §
WHEREAS, Lessee, Avionics International Supply, Inc has
indicated that certain provIsions of the December 19, 1995 lease
agreement between it and Lessor, City of Denton, Texas, are causing
difficulty in securing financing for certain improvements to be
constructed on the leased premises, and
WHEREAS, Lessor desires to facilitate development at the Denton
Municipal Azrport by Lessee,
.~ .This leas~ amendment (,'Amendment") is made and executed this
;)~day of ~, 1996, at Denton, Texas, by and between the City
6f Denton, Texas~;a munzclpal corporation, hereinafter referred to
as "Lessor", and Avionics International Supply, Inc , having its
principal offices at 1750 Westcourt Road, Denton Municipal A~rport,
Denton, Texas 76207, hereinafter referred to as "Lessee" Th~s
amendment amends the lease agreement executed on December 19, 1995
(the "Agreement") between Lessor and Lessee to the extent contained
herein only, all other provisions of the Agreement not specifically
modified herein remain in full force an effect as origInally
written
Article IX of the agreement is hereby amended to read as
follows
IX. SUBROGATION OF MORTGAGEE
Any person, corporation or lnst~tutlon that lends money to
Lessee for construction of any hangar, structure, building or
improvement and retains a security interest in said hangar, struc-
ture, building or improvement shall, upon default of Lessee's
obligations to said mortgagee, have the right to enter upon that
portion of said leased premises upon which said fixture is located
and operate or manage said hangar, structure, building or improve-
ment according to the provisions of the agreement, for a period not
to exceed the term of the mortgage with Lessee, or until the loan is
paid in full, whichever comes first, but in no event longer than the
term of this lease Mortgagee shall not be obligated to operate any
business upon the leased premises during its tenancy of the leased
premises, and mortgagee shall not conduct any business upon the
leased premises which is not aviation related If, during mort-
gagee's occupation of the leased premises, mortgagee finds a suit-
able substitute tenant to operate an aviation-related business on
such portion of the leased premises, it may, w~th Lessor's consent,
assign such portion of the lease to such assignee under the terms
contained within Paragraph XI It is expressly understood and
agreed that the rmghts of the mortgagee referred to herein are limi-
ted and restricted to those improvements constructed wmth funds
borrowed from mortgagee, that mortgagee shall have no right to exer-
cise, possess or assign any options or rights of first refusal not
exercised by Lessee prior to default, and that mortgagee shall have
no right to use, possess, occupy or assmgn any leased tracts upon
which no mortgagee-financed fmxtures are located
Article XI of the Agreement is hereby amended to read as
follows
XI. ASSIGNMENT OF LEASE
Lessee expressly covenants that it will not assign this lease,
convey more than ten percent (10%) of the interest in his business,
through the sale of stock or otherwise, transfer, license, nor sub-
let the whole or any part of the said premmses for any purpose,
without the wrmtten consent of Lessor Lessor agrees that mt wmll
not unreasonably withhold or delay its approval of such sale, sub-
lease, transfer, license, or assignment of the facilities for the
airport related purposes All options and rights of first refusal
under this lease are personal to Lessee and are not assignable In
all other respects, all duties of Lessee shall remain binding upon
any assignee Solely to secure financing of buildings, structures
or other fixtures on the leased premises, Lessee may assign to a
mortgagee, as collateral only, such rights under the lease as are
allowed under Article IX, herein
Paragraph XVI D of the Agreement is hereby amended to read as
follows
XVI. MISCELLANEOUS PROVISIONS
D. NOTICE Any notice given by one party to the other in
connectmon with this agreement shall be in wrmtmng and shall be sent
by registered mall, return receipt requested, with postage and
regmstration fees prepamd as follows
I If to Lessor, addressed to
City Manager
City of Denton
Denton, Texas 76201
2 If to Lessee, addressed to
Andy Johnson or Don Hawkins
Avionics International Supply, Inc
1750 Westcourt Road
Denton Municipal Airport
Denton, Texas 76207
Avionics Lease Agreement - Page 2
Notices shall be deemed to have been received on the date of
receipt as shown on the return receipt No notice given to Lessee
shall be effective unless similar notice is given to any mortgage
holder having an interest on any improvements to the leased
premises, provided, however, that Lessor's burden to deliver
notzflcatlon to mortgage holders shall be llmzted to mazlzng the
mortgage holder a duplicate copy of all required notices to Lessee,
at the last address furnished by Lessee to the Lessor's Airport
Manager LESSEE SHALL HAVE THE OBLIGATION TO NOTIFY LESSOR IN
WRITING OF ANY ADDRESSES OF INTERESTED MORTGAGE HOLDERS, AND SHALL
INDEMNIFY AND HOLD HARMLESS LESSOR FROM ANYANDALL DAMAGES CLAIMED
BY ANY THIRD PARTY MORTGAGE HOLDER DUE TO A IACK O~ ALLEGED LACK OF
NOTICE OF ANY ACTIONS TAKEN UNDER THE AGREEMENT. Th~s provls~on
shall not supersede any duties Lessee may otherwise have to notify
any mortgage holder of any fact or circumstance under any other
agreement This provision creates no third party r~ghts except to
the extent stated in Paragraph IX and XI of the Agreement
IN WITNESS WHEREOF, the parties have executed this Amendment to
the Agreement as of the day and year first above written
CITY OF DENTON, TEXAS, LESSOR
ATTEST
I~Y OF DENTON, TEXAS
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
CITY OF DENTON, TEXAS
Avionics Lease ~reement - Page 3
AVIONICS INTERNATIONAL SUPPLY,
INC , LESSEE
BY An y~J~on, President
THE STATE OF TEXAS §
COUNTY OF DENTON §
This instrument was acknowledged before me on the /. ~ day of
~L~ , 1996 by Andy Johnson
My Commission Expires ~ -~ - 00
Avionios Lease Agreement - Page 4