2011-097s:\legallour documents\ordinanccs1111airport first financial lease 3rd amendment.doc
ORDINANCE NO. 2011-097
AN ORDINANCE AUTHORIZING THE CITY MANAGER TO APPROVE A THIRD
AMENDMENT TO AN AIRPORT LEASE DATED SEPTEMBER 15, 1987 AS AMENDED
BY ORDINANCE 2010-297 DATED SEPTEMBER 7, 2010 AND BY ORDINANCE 2011-035
DATED MARCH 1, 2011 BETWEEN THE CITY OF DENTON, TEXAS AND FIRST
FINANCIAL RESOURCES, INC. AT THE DENTON MUNCIPAL AIRPORT; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, certain real property upon the Denton Municipal Airport was leased to First
Financial Resources, Inc. in an Airport Lease Agreement, and
WHEREAS, the City of Denton and Lessee desire to amend the lease agreement, and
WHEREAS, the City Council deems it in the public interest to approve this one hundred
twenty (120) day extension of the Lease; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The City Manager or his designee is hereby authorized to execute a Third
Amendment to an Airport Lease Agreement between the City of Denton and First Financial
Resources, Inc. at the Denton Municipal Airport which is attached to and made a part of this
ordinance for all purposes and to exercise all rights and duties of the City of Denton under the
Airport Lease Agreement.
SECTION 2. This ordinance shall become effective immediately upon its passage and
approval.
~l
PASSED AND APPROVED this the day of , 2011.
ARK UG S, AYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY: 'L-~j J)&~
13
APPROVED AS TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
BY: V~ e s s
THIRD AMENDMENT TO
COMMERCIAL OPERATOR LEASE AGREEMENT
BETWEEN CITY OF DENTON AND FIRST FINANCIAL RESOURCES, INC.
THE STATE OF TEXAS §
§ KNOW ALL MEN BY THESE PRESENTS
COUNTY OF DENTON §
This Third Amendment to that certain Commercial Operator Lease which was first made
and executed on September 15, 1987 and amended on September 7, 2010 and March 1, 2011 at
Denton, Texas, by and between the City of Denton, Texas, a municipal corporation, hereinafter
referred to as "Lessor," and First Financial Resources, Inc., hereinafter referred to as "Lessee".
WITNESSETH:
WHEREAS, the Lessor and the Lessee have requested an amendment of the Lease term
and the City Manager and the Airport Advisory Board support the amendment of the Lease;
NOW, THEREFORE, in consideration of the promises and the mutual covenants
contained in this Agreement, the parties agree as follows:
SECTION III. - TERM OF THE LEASE IS HEREBY AMENDED TO READ AS
FOLLOWS:
The term of this Agreement shall be for a period of twenty-three
(23) years, commencing on the 15t" day of September, 1987 and as
amended to continue through the 15"' day of June 2011, except as
amended hereby to extend for one hundred twenty (120) days
through the 13t day of October, 2011, unless earlier terminated
under the provisions of the Agreement. Lessee shall have the first
right of refusal to renegotiate this lease for three (3) additional five
year periods at rentals and terms mutually agreed upon by the
Lessor and Lessee without regard for or considering the then cost
of living index. Lessee's election 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 primary term of
twenty-three (23) years as amended hereby to extend for one
hundred twenty (120) days and at least 180 days before the
expiration of each 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.
Lessee's first right of refusal to renegotiate this lease shall expire
upon the end of the last day of the primary term of twenty-three
(23 ) years as amended hereby to extend for one hundred
twenty (120) days and the last day of each additional
renegotiation period.
SECTION IV. - PAYMENTS, RENTALS AND FEES IS HEREBY AMENDED TO
READ AS FOLLOWS:
Land rental shall be the sum of Two Hundred Twenty Eight
Dollars and Eighty One Cents ($228.81) per month effective
June 16, 2011 through October 13, 2011, payable in four (4)
equal monthly installments in the sum of Two Hundred Twenty
Eight Dollars and Eighty One Cents ($228.81) in advance, on or
before the first day of each and every month during the term of
this agreement. Notwithstanding the foregoing, the lease rental is
reduced by the product of $0.11481 per square foot times the
number of square feet compromising all easements established in
accordance with Article II (c).
SECTION XI. - INSURANCE OF THE LEASE IS HEREBY AMENDED TO
READ AS FOLLOWS:
C. Indemnity. Lessee must indemnify, hold harmless and
defend the Lessor, its officers, agents and employees, from and
against liability for any and all claims, liens, suits, demands
and/or actions for damages, injuries to persons (including
death), property damage, (including loss of use), and expenses,
including court costs, attorneys' fees and other reasonable
costs, occasioned by or incidental to the Lessee's occupancy or
use of the Leased Premises or the Airport and/or activities
conducted in connection with or incidental to this Lease
Agreement, including all such causes of action based on
common, constitutional or statutory law, or based in whole or
in part upon the negligent or intentional acts or omissions of
Lessee, its officers, agents employees, invitees or other persons.
Lessee must at all times exercise reasonable precautions on
behalf of, and be solely responsible for, the safety of its
officers, employees, agents, customers, visitors, invitees,
licensees and other persons, as well as their property, while in,
on, or involved in any way with the use of the Leased Premises.
The Lessor is not liable or responsible for the negligence or
intentional acts or omissions of the Lessee, its officers, agents,
employees, agents, customers, visitors and other persons. The
Lessor shall assume no responsibility or liability for harm,
injury, or any damaging events which are directly or indirectly
attributable to premise defects, whether real or alleged, which
may now exist or which may hereafter arise upon the Leased
Premises, responsibility for all such defects being expressly
assumed by the Lessee. The Lessee agrees that this indemnity
2
provision applies to all claims, suits, demands, and actions
arising from all premise defects or conditions.
THE LESSOR AND THE LESSEE EXPRESSLY INTEND
THIS INDEMNITY PROVISION TO REQUIRE LESSEE TO
INDEMNIFY AND PROTECT THE LESSOR FROM THE
CONSEQUENCES OF THE LESSOR'S OWN
NEGLIGENCE WHILE LESSOR IS PARTICIPATING IN
THIS LEASE AGREEMENT WHERE THAT
NEGLIGENCE IS A CONCURRING CAUSE OF THE
INJURY, DEATH, OR DAMAGE. NOTWITHSTANDING
THE TERMS OF THE PRECEDING SENTENCES, THIS
INDEMNITY PROVISION DOES NOT APPLY TO ANY
CLAIM, LOSS, DAMAGE, CAUSE OF ACTION, SUIT AND
LIABILITY WHERE THE INJURY, DEATH, OR DAMAGE
RESULTS FROM THE SOLE NEGLIGENCE OF THE
LESSOR OR ANY OF ITS EMPLOYEES, CONTRACTORS,
OR AGENTS, UNMIXED WITH THE FAULT OF ANY
OTHER PERSON OR ENTITY.
ALL OTHER PROVISIONS OF THE LEASE AGREEMENT REMAIN IN FULL
FORCE AND EFFECT. 4
IN WITNESS WHEREOF, the parties have executed this Agreement as of the-
day of - 2011.
BY LESSOR:
GEORGE C. CAMPBELL
CITY MANAGER
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
APPROVED AS TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
ti
BY:
FIRST FINANCIAL RESOURCES, INC. LESSEE:
BY:
Byron (;Z~t
STATE OF TEXAS
COUNTY OF DENTON
This instrument was acknowledged before me on the 2-3 day of Mq J ,
20 [1 , by Byron Hart.
NQRLEY
[SEAL] Noao~v, 11
>HaA~ of Tomas
01.26`12 _
STATE OF TEXAS
COUNTY OF DENTON
Notary Public,/State of Texa
My Commission Expires 26 /L
(or Notary Stamp)
This instrument was acknowledged before me on the day of ,
201_, by George Campbell, City Manager on behalf the City of Denton, Te as, a municipal
corporation.
[SEA oa„Y"""" JANE E. RICHARDSON
Notary Public, State of Texas
My Commission Expires
June 27, 2013
4
(31JAI &&~
Votary Public, State of Texas
My Commission Expires
(or Notary Stamp)