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AGENDA
City Council Airport Committee
Wednesday, April 12, 2017
After determining that a quorum is present, the Council Airport Committee of the Denton City
Council will convene in a regular meeting on Wednesday, April 12, 2016, at 1:00 p.m. in the City
Hall, City Council Work Session Room at 215 E. McKinney St., Denton, Texas to consider the
specific agenda items listed below:
OPEN MEETING
1. Consider approval of minutes from the meeting held on October 19, 2016.
2. Receive a report, hold a discussion and make a recommendation regarding a request to
assign the JR Almand Airport Lease Agreement and to consider the expansion and
extension of the lease terms of the agreement.
CLOSED SESSION
3. Deliberations Regarding Real Property-Under Texas Government Code Section 551.072;
Consultation with Attorneys—Under Texas Government Code, Section 551.071
Deliberate the purchase, exchange, lease or value of real property to wit the JR Almand
Lease at the Denton Enterprise Airport. Deliberation in an open meeting would have a
detrimental effect on the position of the City of Denton in negotiating with a third person.
Consultation with the City's attorneys regarding legal issues associated with the acquisition
of the real property interests described above where a discussion of these legal matters in
an open meeting would conflict with the duty of the City's attorneys to the City of Denton
and the Denton City Council under the Texas Disciplinary Rules of Professional Conduct
of the State Bar of Texas, or would jeopardize the City's legal position in any
administrative proceeding or potential litigation, or where discussions had, deliberation,
and direction given, by the Denton City Council in an open meeting would have a
detrimental effect on the position of the governmental body in negotiations with a third
party.
4. Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the
Airport Committee of the Denton City Council or the public with specific factual
information or recitation of policy, or accept a proposal to place the matter on the agenda
for an upcoming meeting.
AND
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Council Airport Committee
April 12, 2017
Under Section 551.0415 of the Texas Open Meetings Act, provide reports about items of
community interest regarding which no action will be taken, to include: expressions of
thanks, congratulations, or condolence; information regarding holiday schedules; an
honorary or salutary recognition of a public official, public employee, or other citizen; a
reminder about an upcoming event organized or sponsored by the governing body;
information regarding a social,ceremonial,or community event organized or sponsored by
an entity other than the governing body that was attended or is scheduled to be attended by
a member of the governing body or an official or employee of the municipality; or an
announcement involving an imminent threat to the public health and safety of people in the
municipality that has arisen after the posting of the agenda.
5. Adjournment
CERTIFICATE
I certify that the above notice of meeting was posted on the bulletin board at the City Hall of the
City of Denton, Texas, on the day of April, 2017 at o'clock(a.m.) (p.m.).
JENNIFER WALTERS, CITY SECRETARY
NOTE: THE CITY OF DENTON AIRPORT TERMINAL BUILDING IS ACCESSIBLE IN
ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT. THE CITY WILL
PROVIDE SIGN LANGUAGE INTERPRETERS FOR HEARING IMPAIRED IF REQUESTED
AT LEAST 48 HOURS IN ADVANCE OF THE SCHEDULED MEETING. PLEASE CALL THE
CITY SECRETARY'S OFFICE AT 349-8309 OR USE TELECOMMUNICATION DEVICES FOR
THE DEAF (TDD) BY CALLING 1-800-RELAY-TX SO THAT A SIGN LANGUAGE
INTERPRETER CAN BE SCHEDULED THROUGH THE CITY SECRETARY'S OFFICE.
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City Council Airport Committee
Wednesday October 19, 2016
DRAFT Meeting Minutes
After determining that a quorum is present, the Council Airport Committee of the Denton City
Council will convene in a regular meeting on Wednesday October, 19th, 2016, at 12:00 p.m. in
the Airport Terminal Building, Meeting Room at 5000 Airport Road, Denton, Texas to consider
the specific agenda items listed below:
PRESENT: Council Member and Chair, Kathleen Wazny; Council Member Joey Hawkins; and
Mayor Chris Watts.
ABSENT: None
STAFF PRESENT: Assistant City Manager, Jon Fortune; Director of Aviation, Quentin Hix;
Deputy City Attorney, John Knight; Airport Manager, Dave Schaumburg, Administrative
Assistant, and Recording Secretary, Julie Mullins; Operations Coordinator, Chase Patterson.
OTHERS PRESENT: Amanda Addington, Air Fair Marketing Director.
The meeting was called to order at 12:10 p.m. by Council Member and Chairman Kathleen
Wazny.
OPEN MEETING
1. Consider approval of minutes from the meeting held on January 19, 2016.
Council Member Joey Hawkins made a motion to approve the minutes followed by a second
from Council Member Greg Johnson. The motion carried unanimously.
2. Receive reports by citizens and other interested persons.
No report from Citizens and other interested persons.
3. Receive a report, hold a discussion and make a recommendation to the City Council
regarding an ordinance authorizing the City Manager, or his designee, to execute on
behalf of the City of Denton a First Amendment to an Airport Lease Agreement as
approved by Ordinance 2015-324 on August 4, 2015 between the City of Denton, Texas
and Mark Hicks Transport, LLC for the property located at 4901 Lockheed, Denton
Enterprise Airport.
Mr. Quentin Hix informed the Committee the first amendment to the Mark Hicks Transport
lease is to add more ramp space to this lease. Back in August of this year, while pouring the
ramp, Mark Hicks noticed that he will not be able to turn his plane around without the wings
going over undeveloped land. He needed more ramp space. Mayor Chris Watts asked is this
the same terms as the original lease? Mr. Hix commented, yes they are the same.
5
Council Member Joey Hawkins made a motion to make a recommendation to City Council to
approve the First Amendment to an Airport Lease Agreement to Mark Hick Transport, LLC.
Second by Mayor Chris Watts. The motion carried unanimously.
4. Receive a report, hold a discussion and make a recommendation to the City Council
regarding an ordinance authorizing the City Manager or his designee to execute on behalf
of the City of Denton a Commercial Operator Airport Lease Agreement between the City
of Denton, Texas and Denton Med Trans, LLC for the property located at 2200
Westcourt Road.
Mr. Quentin Hix informed the Committee the company has been to our airport several times
and they chose Denton. This lease is 2.8 acres of property adjacent to Taxilane Quebec,
Denton Med Trans, LLC, will be bringing their corporate headquarters to the Airport. The
general business activity is training for medical emergency personnel operating helicopter
and medical evacuation services. The lease has an option on a first right of refusal on the
adjacent lot. Joey Hawkins asks why this lease goes up every three years at 3% instead of a
CPI adjustment every two years. Mr. Quentin Hix informed the Committee this lease was
written a little different than usual, Med Trans suggested this to have a fixed amount every
three years. The ground breaking will be mid-November.
Chairman Kathleen Wazny would like the other Council Members to know about this item
before it goes to Council. Jon Fortune commented an announcement can go in the Council
Packet on the Friday before November 1 with a little more information on this item.
Mayor Chris Watts made a motion to make a recommendation to City Council to approve the
Commercial Operator Airport Lease agreement to Denton Med Trans, LLC property lease.
Second by Council Member Joey Hawkins. The motion carried unanimously.
5. Receive a report, hold a discussion and make a recommendation to the City Council
regarding an ordinance authorizing the City Manager, or his designee, to execute on
behalf of the City of Denton an approval of sublease for the property located at 2200
Westcourt as approved by Ordinance 2016-XXX on November 1, 2016 between the City
of Denton, Texas and Denton Med Trans, LLC.
Council Member and Chairman Kathleen Wazny said this item is in conjunction with Item 4,
is there any other comments on the sublease. No comments on this item.
Mayor Chris Watts made a motion to make a recommendation to City Council to approve the
Sub-lease agreement to Denton Med Trans, LLC property lease. Second by Council Member
Joey Hawkins. The motion carried unanimously.
6. Receive a report, hold a discussion and give staff direction regarding a lease agreement
between the City of Denton and Mike Sisk for the property located at 4850 Lockheed lane
at Denton Enterprise Airport.
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Mr. Hix confirmed the lease for Mike Sisk and has been through the building process with
the understanding they cannot build without a lease. Mr. Mike Sisk has the lease in his hand,
but no signed lease has been returned to the Airport office. Mr. Sisk proposed to build a
10,000 square foot hanger. This lease is not on November 1, 2016, there is no signed lease as
of this meeting. Mayor Chris Watts asks if he has a couple of weeks before November 1st,
Mayor recommends to put it on the Council agenda for November 1st, Mr. Hix wants to put it
on December 6th more important would this Committee like to meet after the lease is signed
before bringing the lease to Council.
Mayor Chris Watts made a motion to make a recommendation to City Council to approve the
Commercial Operator Airport Lease agreement to Mike Sisk property lease after airport
management received the signed lease. Second by Council Member Joey Hawkins. The
motion carried unanimously.
7. Receive a report, hold a discussion and give staff direction regarding a lease agreement
between the City of Denton and Joe Stockhausen for the property located at 4900
Schweizer Street at Denton Enterprise Airport.
Mr. Quentin Hix explained to the Committee that Mr. Joe Stockhausen would like to lease
2.3 acres and build 5 individual hangars, to build one and sell the hangar and then build the
second and so on. Mr. Stockhausen would like the property lease to be written up with a
right-of-first-refusal. The Committee discussed with staff, they are not comfortable with
writing a lease with right-of-first-refusal.
8. Receive a report, hold a discussion and give staff direction regarding a lease agreement
between the City of Denton and John Reed for the property located at 4800 Schweizer
Street at Denton Enterprise Airport.
Mr. Quentin Hix explained to the Committee that Mr. John Reed would like to know if the
property lease could be written up with a right-of-first-refusal. The Committee discussed
with staff they are not comfortable with writing a lease this way with a lot of land involved.
9. Receive a report,hold a discussion and give staff direction regarding a proposal from the
Denton Air Fair Committee to discontinue the annual air show at Denton Enterprise
Airport.
Mr. Hix explained to the Committee why the Denton Air Fair Committee would like to not
have an Air Show at the Denton Enterprise Airport. Airport Management ask the Council
Airport Committee to help pay for the outstanding invoices the Denton Air Fair cannot pay.
The Denton Air Fair Committee did not have enough sponsorships and some sponsors did
not pay.
Ms. Amanda Addington informed the Committee on what her role was in the Denton Air
Show back in 2001 to present. With the Air Show growing and the Denton Enterprise Airport
growing, the parking was off site and the parking off site drained the expenses.
Denton Enterprise Airport will still have the Congressman Burgess event and other events
hosted during the year.
Council Member Joey Hawkins is sadden to end this event. Jon Fortune informed the
Committee this item was brought to the Council last year and the City Council said to find
the funds to pay.
Council Member and Chairman Kathleen Wazny to bring forward to City Council to
discontinue the annual air show at Denton Enterprise Airport and help clear up the balances
for this year's invoices.
10. Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the
Airport Committee of the Denton City Council or the public with specific factual
information or recitation of policy,or accept a proposal to place the matter on the agenda
for an upcoming meeting.
Next Meeting:
Mayor Chris Watts wants the next 5, 10, and 15 year forecast to next meeting. Comparison
rates from other airports. Proforma and Structure.
AND
11. Under Section 551.0415 of the Texas Open Meetings Act, provide reports about items of
community interest regarding which no action will be taken, to include: expressions of
thanks, congratulations, or condolence; information regarding holiday schedules; an
honorary or salutary recognition of a public official, public employee, or other citizen; a
reminder about an upcoming event organized or sponsored by the governing body;
information regarding a social, ceremonial, or community event organized or sponsored
by an entity other than the governing body that was attended or is scheduled to be
attended by a member of the governing body or an official or employee of the
municipality; or an announcement involving an imminent threat to the public health and
safety of people in the municipality that has arisen after the posting of the agenda.
12. Adjournment: 1:27 P.M.
KATHLEEN WAZNY
COMMITTEE CHAIR
CITY OF DENTON, TEXS
JULIE MULLINS
RECORDING SECRETARY
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Agenda Information Sheet
DEPARTMENT: Transportation
DCM: Bryan Langley
Date: April 12, 2017
SUBJECT
Receive a report, hold a discussion and make a recommendation regarding a request to assign the
JR Almand Airport Lease Agreement and to consider the expansion and extension of the lease
terms of the agreement.
BACKGROUND
The Dr. JR Almand lease agreement is a 25 year agreement from May 1989 to April 30, 2015.
The lease had an option to extend for two, five-year terms to April 2025 which were executed in
2015. The 31,319 square foot leasehold is located at 5088 Sabre Lane on the north end of the
airport and with a leasehold improvements that include a 12,000 square foot hangar, aircraft
parking ramp and access taxiway.
Airport staff has been advised through Dr. JR Almand' s attorney, Kenneth A. Herridge, that he
has developed a sales agreement with a third party, Edwards-Montgomery, to assign or sell his
client's existing Denton Enterprise Airport leasehold agreement and related improvements.
Edwards-Montgomery originally notified Airport staff they were seeking an assignment to be
contingent on an extension of the existing lease and potential expansion of the leased area. As of
April 10, 2017, Edwards-Montgomery has communicated that they are now only interested in the
assignment of the lease. Mr.Montgomery's Hangars Plus,LLC has three leaseholds on the Denton
Airport.
OPTIONS
1. Recommend to Council the assignment of the lease agreement as requested by Dr. JR
Almand and assignee Edwards-Montgomery.
2. Recommend assignment of the lease to Edwards-Montgomery with additional direction
regarding.
3. Take no action at this time.
ESTIMATED SCHEDULE OF PROJECT
Should the Committee recommend assignment of the lease to City Council, this item could be
placed on Council Agenda for final consideration on May 2, 2017.
PRIOR ACTION/REVIEW (Council, Boards, Commissions)
Council approved the lease agreement on April 18, 1989, Resolution 89-031.
FISCAL INFORMATION
This property lease is for 31,319.64 square feet of land originally leased in 1989 for an annual
lease rate of $2,505.57. The current annual lease rate, which includes annual Consumer Price
Index adjustment, is $4,741.80 or$0.15 per square foot.
A transfer fee of$500 will be required by Assignor.
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STRATEGIC PLAN RELATIONSHIP
The City of Denton's Strategic Plan is an action-oriented road map that will help the City achieve
its vision. The foundation for the plan is the five long-term Key Focus Areas (KFA):
Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and
Family-Friendly Community; and Sustainability and Environmental Stewardship. While
individual items may support multiple KFAs, this specific City Council agenda item contributes
most directly to the following KFA and goal:
Related Key Focus Area: Economic Development
Related Goal: 1.1 Manage financial resources in a responsible manner
EXHIBITS
1. JR Almand site map
2. JR Almand Airport Lease Agreement
Respectfully submitted:
Mark Nelson
Transportation Director
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AIRPORT LEASE BETWEEN THE
CITY OF DENTON AND-J. R. ALMAND, M. D.
This agree hereinafter refer ed to as "Lease" is made and
executed this - f day of 1989 , at Denton, Texas,
by and between the CITY OF DE ON, a municipal corporation of the
State of Texas, hereinafter referrp,d'to as "Lessor" , and J. R.
ALMAND, M.D. , having i4ff principal offices at Carrier
✓ Parkway & Dalworth Street, Grand Prairie, Texas, hereinafter
referred to as "Lessee" .
WITNESSETH:
WHEREAS, Lessor now owns, controls and operates the Denton
Municipal Airport ("Airport") in the City of Denton, County of
Denton, State of Texas; and
WHEREAS, Lessee desires to' lease land on the Airport and
construct . and maintain an aircraft storage hangar and associated
facilities thereon;
NOW, THEREFORE, in consideration of the premises and the
mutual covenants contained in this Lease, the parties agree as
follows:
I. CONDITIONS OF LEASE
NOTWITHSTANDING ANY LANGUAGE TO THE CONTRARY HEREINAFTER CONTAINED,
THE LANGUAGE IN PARAGRAPHS A THROUGH B OF THIS SECTION SHALL BE
BINDING.
A. Non-Discrimination. The Lessee, for itself, its personal
representatives, successors in interest, and assigns, as a part of
the consideration hereof, does hereby covenant and agree as a
covenant running with the land that:
(1) In the construction of any improvements on, over, or
under such land and the furnishing 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.
(2) The Lessee, shall use the Premises incompliance with
all requirements imposed by or pursuant to Title 49,
Code of Federal Regulations, Department' of Transpor-
13
t
tation, Subtitle A, office of the Secretary, Part 21,
Non-discrimination 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.
In the event of breach of any of the above non-discriminatory
covenants, Lessor shall have the right to terminate the Lease and
to reenter and repossess said land and the facilities thereon, and
hold the same as if said Lease had never been made or issued. This
provision does not become effective until the procedures of 49 CFR
Part 21, as amended, are followed and completed, including
expiration of appeal rights.
B. 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 view of the Lessee, and
without interference or hindrance.
(2) Lessor. reserves unto itself, its successors and
assigns, for the use and benefit of the flying public,
a right of flight for the passage of aircraft above the
surface of the Premises described herein, together with
the right to cause in said airspace such noise as may
be inherent in the operation of aircraft now known or
hereafter used, for navigation of or flight in the said
airspace, and for use of said airspace for landing on,
taking off from, or operating on the Airport.
(3) Lessor-=shall be obligated to maintain and keep in
repair the landing area of the Airport and shall have
the right to direct and control all activities of
Lessee in this regard.
(4) 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 provisions of the lease to the
Government, shall be suspended.
(5) 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
ALMAND LEASE/Page 2
14
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adjacent to the Airport which, in the opinion of the
Lessor, wou' d limit the usefulness or safety of the
Airport or constitute a hazard to aircraft or to
aircraft navigation.
(6) 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 lease to
Lessee, and Lessee does hereby lease from Lessor the tract of land
as shown in Attachment "A", attached hereto and incorporated herein
by reference, described as follows:
All that certain tract or parcel of land situated in the
Thomas Toby Survey, Abstract Number 1285, Denton County,
Texas, and being part of a tract shown by deed to City
of' Denton, recorded in Volume 304, Page 503 , Deed Records
of Denton County, Texas, and being more particularly
described as follows:
BEGINNING at a found half inch rebar at a point North 17
degrees 07 minutes 10 seconds East 1618. 05 feet from a
concrete monument marked DTO-B-1979;
THENCE North 01 degrees 26 minutes 06 seconds East a
distance of 198. 12 feet to a set half inch rebar;
THENCE South 88 degrees 33 minutes 54 seconds East a
distance of 180. 00 feet to a set half inch rebar;
THENCE South 01 degrees 26 minutes 06 seconds West a
distance of 150.00 feet to a set half inch rebar;
THENCE South 76 degrees 28 minutes 03 seconds West a
distance of 186. 32 feet to the Point of Beginning,
containing in all 0.719 acres of land.
For the purposes of this Lease, the term "Premises" shall mean
the property located within the land described above.
ALMAND LEASE/Page 3
15
y
III . TERM
The term of this Lease shall be for a period of twenty-five
(25) years, commencing on the lst day of May, 1989 , and continuing
through the 30th day of April, 2015, unless earlier terminated
under the provisions of the Lease. Lessee shall have the right and
option to extend the term of this Lease for two additional five (5)
year terms after the expiration of the initial twenty-five (25)
year term. Should Lessee desire to exercise either such option,
Lessee shall give written notice thereof to Lessor at least one
hundred eighty (180) days prior to the expiration of the initial
term or first additional five-year term of this Lease, whichever
the case may be. In the event Lessee fails to give written notice
within the required time, the option to extend shall automatically
terminate. In the event Lessee timely exercises the option to
extend, this Lease shall be extended for an additional five-year
term upon the same terms and conditions provided for in this Lease. .
IV. RENTALS AND PAYMENTS
Lessee covenants and agrees to pay to Lessor, as consideration
for this Lease, payments and rentals and fees as follows:
A. First Year Rent. Lessee shall pay to the Lessor rent for
the use and occupancy of the Premises for the first year of this
Lease the sum of eight cents (8c�) per square foot per year, for a
total of Two Thousand Five Hundred Five Dollars and Fifty-seven
Cents ($2 , 505.57) , to be paid in twelve (12) equal monthly
installments in the sum of Two Hundred Eight Dollars and Eighty
Cents ($208. 80) per month. The first monthly payment should be
prorated for the number of days remaining in the month after the
effective date of this Lease.
B. Annual Rental Adjustments. For subsequent years the yearly
rental shall be based an the All Urban Consumer Price Index (CPI-U)
for the Dallas/Fort Worth, Texas, Standard Metropolitan Statistical
Area, as compiled by the U.S. Department of Labor, Bureau of Labor
Statistics, using 1967 - 100 as the base period. The rental for
years subsequent to the initial year of this Lease, including any
year in any additional term provided for in this Lease, shall be
computed. by dividing the sum of $2 , 505.57, the amount of rent for
the- initial year of the Lease, by the index number for January
1989, which is the first month of the initial year of , the Lease,
then multiplying that amount by the index number of the month
immediately preceding the initial month of each subsequent year of
the Lease. The annual rental so calculated for each subsequent
ALMAND LEASE/Page 4
16
year shall be paid in twelve ( 12 ) equal monthly installments as
provided herein.
C. Payment and Pen5_ltY. All payments made hereunder by Lessee
shall be made to Lessor at the offices of the Finance Department
of the Lessor of Denton, Accounts Receivable, 215 E. McKinney,
Denton, Texas 76201, unless Lessee is notified to the contrary in
writing by Lessor. All monthly rental payments, other than the
first monthly rental , shall be due and payable on or before the
first day of each month and shall be paid by Lessee without demand
or notice from Lessor. The first monthly rental payment shall be
due and payable within ten (10) days of the effective date of this
Lease. All rental amounts paid by Lessee after the tenth (10) day
of the month will be delinquent and shall include an additional
monetary amount (penalty) which shall equal five percent (5%) of
the rental amount due. Failure of Lessee to pay the five percent
(5%) monetary penalty on delinquent rent shall constitute an event
of default of this Lease.
V. RIGHTS AND OBLIGATIONS OF LESSEE
A. Use of Premises. Lessee is granted the right to use the
Premises for the storage, maintenance, and repair of aircraft owned,
and operated by the Lessee and Lessee 's family or invitees. Lessee
may not use any portion of the Premises for any use not authorized
by this Lease, including any industrial, commercial or retail
business or any other business operations which furnish or provide
any product or service to the general public or other lessees of
Airport property. No permanent dwelling or domicile may be built,
moved to or established on or within the Premises nor may the
Lessee, its tenants, invitees, or guests be permitted to reside or
remain as a resident on or within the Premises or other Airport
Premises.
B. General Acgessemi es. Subject - to the reasonable
rules, regulations, or directives of Lessor, Lessee shall, in
common with others so authorized, have the nonexclusive right and
privilege over and through the Airport property and the right of
ingress to and egress from the Premises for its employees, agents,
guests, and invitees, suppliers of materials and furnishers of
services.
C. Standards. During the Lease term, Lessee shall comply with
the following requirements and standards:
(1) address. Lessee shall file with the Airport Manager
and keep current its mailing address , telephone
number(s) and contacts where its authorized official
ALMAND LEASE/Page 5
17
can be reached in an emergency.
(2) List of Tenants . Lessee shall file with the Airport
Manager and keep current a list of any tenants or
sublessee authorized by this Lease and shall
contractually require its tenants and sublessee to
abide by the terms of this Lease. Lessee shall
promptly enforce its contractual rights in the event
of a default of such covenants.
(3) Utilities Ta es And Fees. Lessee shall meet all
expenses and payments in connection with the use and
occupancy of the Premises and the rights and privileges
herein granted, including the timely payments of
utilities, taxes, permit fees, license fees and
assessments lawfully levied or assessed. Lessee herein
agrees to timely pay to all lawful taxing authorities
an ad valorem property tax on all improvements
constructed by the Lessee on the Premises, and to .
comply with all tax laws pertaining to the Premises,
including those promulgated in the future.
(4) Rules . Regulations and Restrictions. Lessee shall
comply with all laws, codes, ordinances, rules, and
regulations, either existing or those promulgated in
the future, by the Lessor, the County of Denton, the
State of Texas, the United States of America, and the
Federal Aviation Administration, or their successors
applicable to the Premises or use thereof. Lessee' s
use of the Premises shall at all times be in compliance
with and subject to any covenants, restrictions, and
conditions of record pertaining to the use and
occupancy of the Premises.
Lessee shall not operate or permit the operation of any
transmitter devices, electrical signal producers, or
machinery on the Premises which could interfere with
the electronic aircraft navigation aids or devices
located on or off Airport property. Lessee shall not
be permitted to engage in any business or operation on
the Premises which would produce obstructions to
visibility or violate height restrictions as set forth
by the Federal Aviation Administration or the Lessor.
(5) Height Restriction And Airspace Protection. The Lessee
agrees for itself, its successors, and assigns to
restrict the height of structures, objects of natural
growth and other obstructions on the Premises to a
height as established in City of Denton ordinance 81-1,
ALMAND LEASE/Page 6
18
as the same may be amended from time-to-time. The
Lessee also agrees for itself, its successors, and
assigns to prevent any use of the Premises which would
interfere with landing or taking off of aircraft at the
Airport, or otherwise constitute an airport hazard.
Lessee hereby forfeits all claims to aviation rights
over the Premises.
(6) Maintenance. Lessee shall be responsible for all
maintenance and repair of the Premises, including
buildings, structures, grounds, pavements, and
utilities. Lessee shall be responsible for grass
cutting, collection and removal of trash and for such
other maintenance requirements as may arise. Lessee
agrees to keep the Premises, together with all
improvements, in a safe, clean and attractive condition
at all times. Lessee shall not change the original
color or texture of the exterior walls of any
structures or improvements without the written consent '
from Lessor.
(a) 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 exterior of each
hangar or building located on the Premises be
reviewed by the Airport Board for the purpose of
determining whether painting of the exteriors of
such buildings or hangars is necessary. If the
Airport 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 Lessor's specifications
(to specify color of paint, quality of paint,
number of applications, quality of workmanship and
the year and month in which each hangar or building
is to be painted, if needed) . Lessee shall
complete the painting in accordance with such
specifications within six (6) months of receipt of
notice from Lessor. Lessee agrees to pay all costs
of the required painting. Failure of Lessee to
complete the painting required by Lessor's City
Council within the six (6) month period shall
constitute Lessee' s default under this Lease.
(b) storage. Lessee shall not utilize or permit others
to utilize areas on the Premises which are located
on the outside of any hangar or building for the
ALMAND LEASE/Page 7
19
storage of wrecked or permanently disabled air-
craft, aircraft parts, automobiles, vehicles of
any type, or any other equipment or items which
would distract from the appearance of the Premises.
(7 ) Quit Possession. Lessee shall quit possession of the
Premises 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.
(8) Chemicals. Lessee shall properly store, collect and
dispose . of all chemicals and chemical residues;
properly store, confine, collect and dispose of all
paint, including paint spray in the atmosphere, and
paint products; and comply with all local, state and
federal laws and regulations governing the storage,
handling or disposal of chemicals and paints . Lessee'
shall not utilized, -store, dispose, or transport any
material, fluids, solids or gaseous substances on the
Premises. which are considered by the Environmental
Protection Agency to be a hazard to the health of the
general public and undertake any activity on the
Premises that would produce noxious odors.
(9) Sians. Lessee shall have the right, at its own
expense, to place in or on the Premises signs
identifying Lessee. The 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 on the Airport. The signs shall
be maintained in repair. Notwithstanding any other
provision of this Lease, the 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
Lease or extensions thereof.
(10) Use of 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 shall 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
ALMAND LEASE/Page 8
20
of a greater weight. Based on qualified engineering
studies, the .;eight restrictions and provisions may
be adjusted up or down by Lessor and 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,
its agents, subcontractors, and invitees. Should
Lessee negligently disregard the provisions of this
section, Lessor may immediately terminate this Lease.
Lessee agrees to pay to Lessor upon demand for any
damage, as determined by Lessor, to Airport property
that results from a violation of this section.
(11) Parking. The parking of motor vehicles on Airport
property by Lessee, Lessee' s guests or invitees, shall
be subject to any regulations, restrictions or
directions imposed by Lessor.
C. Connection to Utilities. Lessor may connect to any exist-
ing water mains serving the Premises, in accordance with and upon
payment of any tap or connection fees, as specified by Lessor's
ordinances applicable to utility _customers, provided, however,
Lessee shall not be liable to 'Lessor for any water or sewer p*o :r
rata payments as "a -result of'the,'connection's made.
D. Nbatement of Violations. Should Lessee violate any law,
rule, restriction or regulation of the Lessor 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 irL.tearference with any aircraft navigational aid
station or device, either airborne or on the ground, then Lessor
shall state such violation in writing and deliver written notice
t�., Lessee or Lessee's agent on the Premises, or to the person on
the Premises who are causing said violation, and upon delivery of
such written notice, Lessor shall have the right to demand that the
person responsible for the violation cease and desist from all such
activity creating the violation. In such event, Lessor shall have
the right to demand that corrective action, as required, be
commenced immediately to restore the Premises into conformance with
the particular law, rule or aeronautical regulation being violated.
Should Lessee, Lessee' s agent, or the person responsible for the
violation fail to cease and desist from said violation and to
immediately commence correcting the violation, and to complete said
corrections within twenty-four (24) hours following written
notification, then Lessor shall have the right to enter on to the
Premises and correct the violation, and Lessor shall not be
responsible for any damages incurred to any improvements on the
Premises as a result of the corrective action process. Lessor
ALMAND LEASE/Page 9
21
shall submit an invoice to Lessee for the cost of the repairs and
Lessee shall pay said invoice within thirty (30) days.
E. Recording of_ Z,ease. within thirty (30) days after the date
of execution of this Lease, Lessee shall at its own expense record
a copy of this Lease in the Real Property Records of Denton County,
Texas, a copy of which recorded lease shall be provided to Lessor.
VI. RIGHTS AND OBLIGATIONS OF LESSOR
A. Improvements Provided By Lessor. Within sixty (60) days of
the effective date of this Lease, Lessor shall construct and
install, at Lessor' s expense, an extension to the existing
underground stormwater drainage pipe located on the Premises, so
that the stormwater drainage pipe will extend beyond the boundaries
of the Premises.
B. 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 Premises and all rights and privileges herein granted..
C. CoMpliance. Lessor warrants and represents that in the
establishment, construction and operation of the 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 over adjoining
property in the course of normal takeoff and landing procedures
from the 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.
D. Easements, Lessor shall have the right to establish
easements, at no cost to Lessee, upon the Premises for the purpose
of providing 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 Premises and Lessor shall restore the property
to its original condition upon the installation of any utility
services on, in, over or under any such easement at the conclusion
of such construction. Lessee shall not have the right to levy
fees, charges, or receive any compensation for any exercised right
of easement by Lessor or Lessor' s authorized agent.
ALMAND LEASE/Page 10
22
fees, Lessor shall approve or disapprove the plat and plans.
Should Lessor fail to approve or disapprove of the required plat
or plans within the sixty (60) days, the plat and plans shall be
deemed approved. Should the Lessor timely disapprove the plat or
plans, it shall give notice to the Lessee of the reason for the
disapproval . No construction of any improvements shall begin until
and unless the plans and specifications are approved by Lessor.
D. Airplane Taxiway Access .
(1) Taxiway Improvements by Lessee. The Lessee acknow-
ledges that on the effective date of this Lease, there
are no existing taxiway improvements to serve the
Premises and that Lessee shall be responsible, at no
cost to Lessor, of providing any necessary taxiway
improvements which are necessary to serve the Premises.
The area designated as "taxiway" on attachment "A"
shall be the general area used, as more specifically
designated by Lessor, to provide for taxiway access to
serve the Premises. . Prior to beginning the taxiway
improvements, the plans therefore shall be submitted
and approved in accordance with the provisions for
other leasehold improvements.
(2) Maintenance and Use of Taxiway Provided by Lessee.
Lessee shall be responsible for the maintenance of the
taxiway access provided, and shall keep the taxiway in
good condition, free of obstructions and defects. The
use of the improved taxiway access shall be subject to
the reasonable rules, regulations, or directives of
essor.
E. ow Lnership of Improvements. All buildings and improvements
constructed upon the Premises by Lessee shall remain the property
of Lessee throughout the term of the Lease, except as otherwise
provided in this Lease. All buildings and improvements of whatever
nature remaining upon the 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.
F. Right of Lessor to Purchase Hangar or Building. In the
event that Lessee should elect to sell hangars or buildings and
other improvements situated upon the Premises at the time Lessor
has the authority to do so, Lessor shall first be offered the right
to purchase the improvements at a value determined by having such
improvements appraised by three appraisers, one appointed by
Lessor, one appointed by Lessee, and one appointed by the two
appraisers. The costs of the appraisal shall be paid by Lessor.
ALMAND LEASE/Page 12
23
Within sixty (60) days of the delivery of a written appraisal
report by the appraisers to Lessor, shall notify Lessee in writing
of its decision to purchase all or part of the hangers or buildings
to be sold. If Lessor exercises its right to purchase, it shall
make payment to Lessee of the appraised value of the buildings or
hangers to be purchased within thirty (30) days of the written
notice.
G. Removal of Hangars or Buildings. In the event that Lessee
should remove any building or hangar from the Premises, where such
removal is authorized by this Lease, Lessee herein agrees to comply
with the following terms:
(1) Prior to commencing the hangar or building removal
process., the Lessee and Lessor shall agree on the best
method to remove the building, including where to cut
water lines, electrical wire, plumbing and other
fixtures or utilities, so as to cut said fixtures to
allow the future use of these fixtures.
(2) The building shall be removed completely from the
surface of the concrete slab and up, with the exception
of cut utility lines. All interior fixtures shall be
removed .including sinks, commodes, dividing walls and
all other items or fixtures that would prevent the
concrete slab from being as free as possible from all
obstructions.
(3) Removal of hangars or buildings shall begin and be
completed prior to Lessee' s designated termination
date.
(4) The hangar or building slab, the aircraft parking
apron, the taxiway, and all other improvements on the
Premises shall remain on the Premises and shall become
the property of the Lessor without costs to Lessor.
(5) Lessee shall be responsible for the removal of all
refuse and debris from the Premises prior to vacating
the Premises.
(6) Lessee shall be responsible for all costs involved in
the removal of the hangar or building, including costs
of permits or fees.
(7) Lessee shall be responsible for any damage caused to
any improvements on the Premises during the building
or hangar removal process, and Lessee herein agrees to
repair or replace, at Lessee's expense, any improve-
ALMAND LEASE/Page 13
24
ments damaged by Lessee during the removal of said
structures.
VIII. SUBROGATION OF MORTGAGEE
Lessee shall have the right tQ place a first mortgage lien
upon its leasehold in an amount not to exceed eighty percent (80%)
of the cost of the capital improvements. The terms and conditions
of such mortgage loan shall be subject to the approval of Lessor
and Lessee shall submit copies of the loan documents, including the
loan application, to Lessor. Lender' s duties and rights are as
follows:
(1) The Lender shall have the right, in case of default, to
assume the rights and obligations of Lessee herein and
become a substituted Lessee, with the further right to
assign the Lessee ' s interest to a third party, subject to
approval of 'Lessor. Lender' s obligations under this Lease
as substituted Lessee shall cease upon assignment to a
third party as approved by Lessor.
(2) As a condition precedent to the exercise of the . right '
granted to lender by this paragraph, Lender shall notify
Lessor of all action taken by it in the event payments on
such loans shall become delinquent. Lender shall also
notify Lessor, in writing, on any change in the identity
or address of the Lender.
(3) All notices required by the Lease to be given by Lessor
to Lessee shall also be given by Lessor to Lender at the
same time and in the same manner provided Lessor has been
furnished with written notice of Lender's interest and
its address. Such notice shall be given to the City
Secretary and the Airport Manager. Upon receipt of such
notice, Lender shall have the same rights as Lessee to
correct any default.
IX. INSURANCE
A. Lessee shall maintain continuously in effect at all times
during the term of this Lease or any extension thereof, at Lessee's
expense, the following insurance coverage:
(1) Comprehensive General Liability Insurance covering the
Premises, the Lessee, its personnel and its operations
on the Airport, for bodily injury and property damage
ALMAND LEASE/Page 14
25
in the minimum amount of $250, 000, combined single
limits on a per occurrence basis.
(2) Fire and extended coverage for replacement value for
all facilities used by the Lessee either as a part of
this Lease or erected by the Lessee subsequent to the
execution of this Lease .
B. All policies shall be issued by a company authorized to do
business in the State of Texas, be approved by the Lessor, copies
of which shall be provided to Lessor. The policies shall name the
Lessor as an additional named insured and shall provide for a
minimum of thirty (30) days written notice to the Lessor prior to
the effective date of any cancellation or lapse of such policies .
C. During the original or extended 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 Airport in size and in scope of,
aviation activities, located in the southwestern region of the
United States. For the purpose of this Lease, the Southwestern
region of the United States shall be the states classified as the
Southwestern region by the Federal Aviation Administration.
D. 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 receipt of a notice in writing from Lessor stating the
increased or adjusted insurance requirements. Lessee shall have
the right to maintain in force types of insurance and amounts of
insurance which exceed Lessor' s minimum insurance requirements.
E. in the event that State law should be amended to require
types of insurance 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 or the amount of insurance as specified by State Law.
ALMAND LEASE/Page 15
26
X. INDEMNITY
A. Lessee agrees to indemnify and hold harmless Lessor and its
agents, employees, and representatives from and against all lia-
bility for any and all claims, suits, demands, or actions arising
from or based upon intentional or negligent acts or omissions on
the part of Lessee, its agents, representatives, employees, mem-
bers, patrons , visitors, contractors and subcontractors, or
sublessees, if any, which may arise out of or result from Lessee ' s
occupancy or use of the Premises or activities conducted in
connection with or incidental to this Lease.
B. This Indemnity Provision extends to any and all such
claims, suits, demands, or actions regardless of the type of relief
sought thereby, and whether such relief is in the form of damages,
judgments, and costs -and reasonable attorney's fees and expenses,
or any other legal or equitable form of remedy. This Indemnity
Provision shall apply regardless of the nature of the injury or
harm alleged, whether for injury or death to persons or damage to
property, and whether such claims be alleged at common law, or
statutory, or constitutional claims, or otherwise. This Indemnity
Provision shall apply whether the basis for the claim, suit,
demand, or action may be attributable in whole or in part to the ,
Lessee, or to any of its agents, representatives, employees,
members, patrons, visitors, contractors, and subcontractors, or
sublessees, if any, or to anyone directly or indirectly employed
by any of them.
C. This Indemnity Provision also extends to any claim or
liability for harm, injury, or any damaging events which are
directly or indirectly attributable to premise defects or
conditions which may now exist or which may hereafter arise upon
the Premises, any and all such defects being expressly waived by
Lessee. Lessee understands and agrees that this Indemnity
Provision shall apply to any and all claims, suits, demands, or
actions based upon or arising from any such claim asserted by or
on behalf of Lessee or any of its members, patrons, visitors,
agents, employees, contractors and subcontractors, or sublessees,
if any.
D. It is expressly understood and agreed that the Lessor shall
not be liable or responsible for the negligence of Lessee, its
agents, servants, employees or sublessees, if any. Lessee further
agrees that it shall at all times exercise reasonable precautions
for the safety of, and shall be solely responsible for the safety
of its agents, representatives, employees, members, patrons,
visitors, contractors and subcontractors, sublessees, if any, and
other persons, as well as for the protection of supplies and
equipment and the property of Lessee or other persons.
ALMAND LEASE/Page 16
27
E. Lessee and Lessor each agree to give the other party prompt
and timely notice of any such claim made or suit instituted which
in any way, directly or indirectly, contingently or otherwise,
affects or might affect the Lessee or the Lessor. Lessee further
agrees that this Indemnity Provision shall be considered as an
additional remedy to Lessor and not an exclusive remedy.
XI. CANCELLATION BY LESSOR
All the terms, restrictions, covenants, and conditions
pertaining to the use and occupancy of the Premises are conditions
of this Lease and the failure of the Lessee to comply with any of
the terms, conditions, restrictions, covenants, and conditions
shall be considered a default of this Lease, and upon default, the
Lessor shall have the right to invoke any one or all of the
following remedies.
A. Should Lessee fail to pay the monthly rental amounts or "
fees prescribed in this Lease, such failure shall constitute a
default of this Lease, and Lessor may give written notice to Lessee
of Lessee 's failure to pay and demand payment in accordance with
the Lease terms. Should Lessee fail to pay the monthly rental
amount within twenty (20) days following receipt of written notice
from Lessor, then Lessor may terminate this Lease.
B. In the event that Lessee fails to comply with any other
terms, conditions, restrictions and covenants pertaining to this
Lease, Lessor shall give Lessee notice of said breach, and request
Lessee to cure or correct the same. Should Lessee fail to correct
said violation(s) or breach within thirty (30) days following
receipt of said notice, then Lessor shall have the right to
terminate this Lease. Should this Lease be terminated by Lessor
for failure of Lessee to correct said breach or violation within
the thirty (30) day cure time, Lessee shall forfeit all rights to
all improvements on the Premises and all improvements on the
Premises shall become the property of the Lessor.
C. In addition to termination of this Lease for the breach of
terms and conditions herein, the Lessor shall have the right to
terminate this Lease for the following reasons:
(1) In the event that Lessee shall file a voluntary
petition in bankruptcy or proceedings in bankruptcy
shall be instituted against Lessee 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;
ALMAND LEASE/Page 17
28
or if a receiver shall take jurisdiction of Lessee and
its assets pursuant to proceedings brought under the
provisions of any federal reorganization act; or if a
receiver for Lessee ' s assets is appointed.
(2) In the event that Lessee should make an assignment of
this Lease, for any reason, without the approval of and
written consent from Lessor.
D. Upon termination or cancellation of this Lease and provided
all monies due Lessor have been paid, Lessee shall have the right
to remove its personal property, provided such removal does not
cause damage to any part of the hangar, structure or improvements.
Lessee shall remove all personal property from the Premises within
ten (10) days after the termination. If Lessee fails to remove
its personal property as agreed, Lessor may elect to retain
possession of such property or may sell the same and keep the
proceeds, or may have such property removed at the expense of
Lessee.
Where, upon termination of the Lease, the fixed improvements
become .the property. of Lessor as provided herein, Lessee shall
repair, at its own expense, any damage to the fixed improvements,,
resulting from the removal of personal property and shall leave
the Premises in a neat and clean condition with all other
improvements in pace.
E. Failure of Lessor to declare this Lease terminated upon the
default of Lessee for any of the reasons set out shall not operate
to bar, destroy, or waive the right of Lessor to cancel this Lease
by reason of any subsequent violation of the terms hereof. The
acceptance of rentals and fees by Lessor for any period or periods
after a default of any of the terms, covenants, and conditions
herein contained to be performed, kept, and observed by Lessee
shall not be deemed a waiver of any rights on the part of the
Lessor to cancel this Lease for failure by Lessee to so perform,
keep or observe any of the terms, covenants or conditions hereof
to be performed, kept and observed.
XII. CANCELLATION BY LESSEE
Lessee may cancel this Lease, 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 preventing or restraining the
use of said Airport or any part thereof for Airport
ALMAND LEASE/Page 18
29
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 the 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 jurisdiction
over the operations of Lessor or due to war, earthquake
or other casualty; or
(4) the assumption or recapture by the United States Govern-
ment or any authorized agency thereof of the Premises for
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 Premises cannot be used for
authorized purposes, then Lessee may cancel this Lease as
aforesaid, or may elect to continue this Lease under its terms.
XIII . MISCELLANEOUS PROVISIONS
A. Entire Agreement. This Lease 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. Subletting or Assignment. The Lessee shall not rent, or
sublease the Premises, or any portion thereof, or assign this
Lease, without prior written consent of the Lessor. If approved
by Lessor, any tenant, sublessee, or assignee shall be subject to
the same conditions, obligations and terms as set forth herein.
c. Lease Binding on Successors and Assigns. All covenants,
agreements, provisions and conditions of this Lease shall be
binding upon and inure to the benefit of the respective parties
hereto and their"legal representatives, successors or assigns. No
modification of this Lease shall be binding upon either party
unless written and signed by both parties.
D. Effect -of Condemnation. If the whole or any part of the
Premises shall be condemned or taken by eminent domain proceedings
by any city, county, state, federal or other authority for any
ALMAND LEASE/Page 19
30
purpose, then theme term of this Lease shall cease on the part so
taken from the day the possession of that part shall be required
for any purpose and the rent shall be paid up to that day, and from
that day Lessee shall have the right to continue in the possession
of the remainder of the Premises under the terms herein provided,
except that the rent shall be adjusted to such amount as the
parties hereto shall negotiate; but, under no circumstances shall
the rent be greater than the rental per square foot provided for
herein. All damages awarded for such taking of and for any public
purpose shall belong to and be the property of Lessor. All damages
awarded for such taking of structures, improvements or businesses
that were constructed by Lessee shall be reflective of their value
for the remainder of the Lease term and be awarded to Lessee, the
remainder to be awarded to Lessor.
E. S_everability. If any provision hereof shall be finally
declared void or illegal by any court or administrative agency
having jurisdiction, the entire Lease 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.
F.- Notice. Any notice given by one party to the other in
connection with this Lease shall be in writing and shall be sent
by registered mail, return receipt requested, with postage and
registration fees prepaid, as follows:
1. If to Lessor, addressed to:
City Manager
City of Denton
215 E. McKinney
Denton, Texas 76201
2. If to Lessee, addressed to:
J. R. Almand, M. D.
Carrier Parkway & Dalworth Street
Grand Prairie, Texas 75050
Notices shall be deemed to have been received on the date of
receipt as shown on the return receipt.
G. headings. The headings used in this Lease are intended
for convenience of reference only and do not define or limit the
scope or meaning of any provision of this Lease.
H. Governing Law. This Lease is to be construed in accordance
with the laws of the State of Texas.
ALMAND LEASE/Page 20
I
i
31
IN WITNESS WHEREOF, the parties have executed this Lease as
of the day and year first above written.
CITY OF DENTON, TEXAS, LESSOR
BY:
LLO ELL, CITY KANAGER
ATTEST:
/-A- lbzt
J IFER fALTERS, •-^.ITY SECRETARY
APPROVED AS TO LEGAL FORM:
DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY
BY:
J. R. ALMAND, M. D. in
LESSEE
BY:
T(ITLE:
ATTEST:
.9�-
i
ALMAND LEASE/Page 21
32
THE STATE OF TEXAS
COUNTY OF DENTON
This instrument was acknowledged before me on the day
of , 1989, by Lloyd V. Harrell, City Manager
of the City of Denton, Texas, a municipal corporation of the State
of Texas, on behalf of said corporation.
NOTARY PUBLIC, STATE OF TEXAS
My Commission expires:
THE STATE OF TEXAS
J)Aa� A.s
COUNTY OF DOWT N
This i strument was acknowledged before me on the , day
of _ _ __, 1989, by J. R. Almand, e�M.i�ri�f
b
NOTARY PUBLI STATE OF TEXAS
My Commission expires:
'F C:\WP50\ALMAND
ALMAND LEASE/Page 22
33