1994-230FILE REFERENCE FORM 94-230
X Additional File Exists
Additional File Contains Records Not Public, According to the Public Records Act
Other
FILE(S) Date Initials
Assi nment of Lease — Resolution No. R95-014 02/07/95 JR
Assignment of Lease — Ordinance No. 2016-052 02/16/16 JR
brownleb.ord
ORDINANCE NO. qq -- 50
AN ORDINANCE AUTHORIZING THE CITY MANAGER OF THE CITY OF DENTON,
TEXAS TO EXECUTE A GROUND LEASE AGREEMENT BETWEEN THE CITY OF
DENTON,i TEXAS AND BRUCE BROWN FOR APPROXIMATELY 0.479 ACRES OF
PROPERTY LOCATED AT THE DENTON MUNICIPAL AIRPORT; AND PROVIDING AN
EFFECTIVE DATE.
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION I. That the city Manager is authorized to execute a
groundilease agreement between the city of Denton, Texas and Bruce
Brown for approximately 0.479 acres of land located at the Denton
Municipal Airport, under the terms and conditions contained within
this agreement, which is attached hereto and made a part hereof.
SECTION II. That this ordinance shall become effective
immediately upon its passage and approval.
PASSED AND APPROVED this the ~'~ day
1994.
ATTEST:
JENNIFER WALTEr, C~Y SE~RET~
APPROVED AS TO LEGAL FORM:
MICHAEL A. BUCEK, ACTING CITY ATTORNEY
AIRPORT LEASE AGREEMENT
COMMERCIAL OPERATOR
THE STATE OF TEXAS §
§ KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF DENTON
This lease is made and executed this ~ay of ~,
19~., .at Denton, Texas, by a~d between the City of Denton, Texas,
a municipal corporation, hereinafter referred to as "Lessor", and
Bruce Brown, having his principal offices at 900 Austin Street,
Denton, Texas, 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, in consideration of the premises and the mutual
covenants contained in this Agreement, the parties agree as follow:
FOR AND IN CONSIDERATION of the foregoing and the mutual
covenants contained herein, the parties hereby agree as follows:
I. CONDITIONS OF AGREEMENT
NOTWITHSTANDING ANY L~NGUAGE 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 the
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 the Lessee
may be allowed to make reasonable and nondiscriminatory
discounts, rebates, or other similar types of price
reductions to volume purchasers.
B. NON-DISCRIMINATION: The Lessee, for himself, his personal
representatives, successors and interests, and assigns, as a part of
Brown Lease Agreement - Tract g - Page
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. The 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, Nondiscrimi-
nation in Federally assisted programs of the Department of
Transportation - Effectual of Title VI of the civil Rights
Act of 1964, and as said Regulations may be amended.
C. RIGHT OF INDIVIDUALS TO MAINTAIN AIRCRAFT. It is clearly
understood by the 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 the Lessee, and without interfer-
ence or hindrance.
2. Lessor shall be obligated to maintain and keep in 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 provisions of this
instrument insofar as they are inconsistent with the
Brown Lease Agreement - Tract B - Page 2
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 the 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 20,865.24 square
feet, or 0.479 acres, drawn and outlined on Attachment "A" and
described therein as Tract B, such attachment being incorporated
herein by reference.
Together with the right of ingress and egress to said property;
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 employ-
ees, 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 "A" as Tract B, including leasehold improvements con-
structed by the Lessee, but not including certain easements or
property owned and/or controlled by the Lessor. Lessee further
agrees and grants to all other properties described or depicted on
Attachment "A" (specifically including the property located in the
northeast quadrant of the survey plat, not identified by a tract
designation or defined by field notes) the right of ingress and
egress across the concrete taxiway as shown on attachment A.
B. IMPROVEMENTS PROVIDED BY LESSOR: NONE: There will be no
improvements provided by Lessor, except as set forth in Article
II.D. "Access to Utilities" below.
For the purpose of this Agreement, the term "Lessor improve-
ments'' shall mean those things on the leased premises belonging to,
constructed by, or to be constructed by the Lessor, which enhances
BroNn Lease Agreement - Tract B - Page
or increases, or will enhance or increase, the value or quality of
the leased land or property. Unless otherwise noted herein, all
Lessor improvements are and will remain the property of the Lessor.
All Lessor improvements must be described in detail above, or above
referenced and attached to this Agreement in an exhibit approved by
the Lessor.
C. EASEMENTS. Lessor and Lessee by mutual agreement may
establish, on the lease premises, easements for public access on
roads and taxiways.
D. ACCESS TO UTILITIES. Lessor represents that there are water
and 3-phase electricity lines within three hundred feet (300') 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 years, com-
mencing on the~ day of ~, 19_~_~, and continuing
through the 30th day of April, 2025, unless earlie~ terminated under
the provisions of the Agreement. Any attempt by Lessee to renegotl-
ate 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 expira-
tion of any additional renegotiated period. 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. P~YMENTSt 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 One
Thousand Six Hundred Thirty-Six and 92/100 Dollars ($1,636.92) per
year, payable in twelve (12) equal monthly installments in the sum
of One Hundred Thirty-Six and 41/100 Dollars ($136.41) in advance,
on or before the first day of each and every month during the term
of this agreement.
Notwithstanding the foregoing, the annual lease rental is to be
reduced by the product of $0.078452 per square foot, 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. Ail payments due Lessor from
Lessee shall be delivered to the Airport Manager, unless otherwise
Brown Lease Agreement - Tract B - Page 4
designated in writing by the Lessor. Payments which are more than
15 days past due shall be assessed the penalty of one-half of one
percent (0.5%) per day, compounded daily, per each day or a fraction
thereof which the payment or fee is more than 15 days past due. The
yearly rental for land and improvements herein leased shall be
readjusted at the end of each five (5) 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
April 1990 index, which was 122.2 (1982-84 = 100). The original
land rental amount is based upon $0.078452 per square foot per year
for the land herein leased. However, in no event shall any of the
rental adjustments exceed fifty percent (50%) of the original
rental. Each rental adjustment, if any, shall occur on the first
day of May 1995, and every five (5) years thereafter.
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 for the first month of the first year of the lease
term. If the product of this multiplication is greater than the
minimum yearly rent of 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 minimum yearly
rent as set forth in Section IV.A., 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 minimum yearly rent of as set forth in Section
IV.A.
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
Brown Lease Agreement - Tract B - Page 5
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 Lessee's hangars.
3. Aircraft Storaqe and Tie Down. To provide parking, storage
and tie down service, for both Lessee's and itinerant
aircraft 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 lease 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 their mailing addresses, telephone numbers and
contacts where they can be reached in an emergency.
2. List. Lessee shall file with the Airport Manager and keep
current a list of its tenants and sublessees.
3. Conduct. Lessee shall contractually require its employers
and sublessees (and sublessee's invitees) to abide by the
terms of this agreement. Lessee shall promptly enforce its
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
Brown Lease Agree~nt - Tract B - Page 6
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, build-
ings, 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 objectional 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, automo-
biles, 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. 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.
8. 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 the
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.
9. Quiet 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.
10. Hold Harmless. Lessee shall indemnify and hold harmless the
Lessor from and against all loss and damages, including
death, personal injury, loss of property or other damages,
arising or resulting from the operation of Lessee's business
in and upon the leased premises.
Brown Lease Agreement - Tract B - Page 7
11. 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 chemi-
cals and paints.
12. 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 naviga-
tion, obstructions to visibility or interference with any
aircraft navigational aid station or device, wither 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 viola-
tion(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 correc-
tions 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.
D. SIGNS. During the term of this Agreement, Lessee shall have
the right, at its own expense, to place in or on the lease 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 prop-
erty 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.
grown Lease Agreement - Tract B - Page 8
VI. COVENANTS BY LESSOR
Lessor hereby agrees as follows:
A. PEACEFUL EMPLOYMENT. 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 distributes 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 CONDITIONB
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 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 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. 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 the 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 the Lessee to be liable for any
damages to the Airport that might result.
Brown Lease Agreement - Tract B - Page 9
VIII. LEABEHOLD IMPROVEMENTB
A. REOUIREMENTS. 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 lease
premises are in conformance with the overall size, shape,
color, quality and design, in appearance and structure of
the program established by the Lessor on the Airport.
2. Ail 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 from
time to time as such costs ate 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 purposes of this agreement.
B. ADDITIONAL CONSTRUCTION OR IMPROVEMENTS. Lessee is hereby
authorized to construct upon the land herein leased, at its 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. Ail 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 Buildinqs. No building or permanent fixture may
be removed from the premises.
Brown Lease Agreement - Tract B - Page 10
2. Assumption. Ail 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 the 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
twenty-five (25) years.
4. Cancellation. Should this lease be cancelled for any reason
before the end of the twenty-five (25) year term, 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
twenty-fifth (1/25) 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
Any person, corporation or institution that lends money to
Lessee for construction of any hangar, structure, building or
improvement and retains a security interest in said hangar, struc-
ture, building or improvement shall, upon default of Lessee's
obligations to said mortgagee, have the right to enter upon 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 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 under-
stood and agreed that the right of the mortgagee referred to herein
is limited and restricted to those improvements constructed with
funds borrowed from mortgagee.
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. How-
ever, any such easements shall not interfere with Lessee's use of
the leased premises and Lessor shall restore the property to orig-
inal condition upon the installation of any utility services on, in,
over or under any such easement or the conclusion of such construc-
tion. Construction in or at the easement shall be completed within
a reasonable time.
Brown Lease Agreement - Tract B - Page 11
XI. ASSIGNMENT OF LEASE
Lessee expressly covenants that it will not assign this lease,
convey more than ten percent (10%) of the interest in its 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; pro-
vided 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. INSUIL~NCE
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 premis-
es, 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. Ail 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. Ail policies must be approved by the Lessor.
7. The Lessor shall be provided with a copy of all such
policies and renewal certificates.
Brown Lease Ag?eement - Tract B - Page 12
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 commensurate 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 insur-
ance 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 following
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 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 adjudicated bankrupt pursuant to such
proceedings, or any court shall take jurisdiction 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 a 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 D (Cancellation) hereof.
Brown Lease Agreement - Tract B - Page
XIVo CANCELLATION BY LESSEE
Lessee may cancel this Agreement, in whole or part, and termi-
nate 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
jurisdiction of a permanent injunction 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 regula-
tion of any appropriate governmental authority having jurisdiction
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 the maintenance and
operation of said airport and facilities or any substantial part or
parts 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 subject matter hereof. Any change or modification
hereof shall be in writing signed by both parties.
B. BINDING EFFECT. Ail the covenants, stipulations and agree-
ments herein shall extend to, bind and inure to the benefit of the
legal representatives, successors and assigns of the respective par-
ties hereto.
C. SEVERABILITY. If a provision hereof shall be finally
declared void or illegal by any court or administrative agency hav-
ing 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. ~OTICE. 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:
grown Lease Agreement - Tract B - Page 14
1. If to Lessor, addressed to:
City Manager
City of Denton
Denton, Texas 76201
2. If to Lessee, addressed to:
Mr. Bruce Brown
Route 3
Roanoke, Texas 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 Agreement are not
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.
IN WITNESS WHEREOF, the parties have executed this Agreement as
of the day and year first above written.
CITY OF DENTON, TEXAS, LESSOR
BOB CASTLEBERRY, MAYOR/
/
ATTEST:
JENNIFER WALTERS, CITY~ECR~TAR~
CITY OF DENTON, TEXAS
APPROVED AS TO LEGAL FORM:
MICHAEL A. BUCEK, ACTING CITY ATTORNEY
CITY OF DENTON, TEXAS
Brown Lease Agreement - Tract B - Page 15
N,'~ LE ~E
THE STATE OF TEXAS
COUNTY OF DENTON
~ This instrument was~knowledged before me on the ~ day of
,~ _ _ by Bruce Brown.
EXAS
My Commission Expires:
Brown Lease Agreement - Tract B - Page 16