2012-056�x�r��NC���, �01��0�6
AI�1 C�RDINANCE AUTI�I`JF�.I�T14It� "T'HE CITY MA1`�A(��R, 4R HI� DESIC�NE�� TQ
��ECUTE OI� �E�IIALI' �F TH� CITY C��' DENTaI`� A T�IRI� AMENI�MEI`�'I' 'Tt7 AN
AI�tPORT LEASE �1GREEMEI�IT APPI�OVEI� BY' C)RDINAI`�ICE 2(�{�9_�1� DAT�D
TANLJARY 6, 24Q�} AND AMEhiDEI� �3Y t?�i7II�1AT*10E 2009-�23 DAT�I� I]EC�M�ETZ l5,
2�09 AND AME�IDEI} BY a�DIItiTANCE 201t}-19� I�A`T"ED ALJ��[JST li, 2t}10 I3�TW�EI`1
I"HE CITY t�F D�1'tiITON, T�XAS �ND SY�S-VAUGI�i�1 INVE�'I"NIET`1'�S, LLC, WHICH
1h1CLUDES A�VIt�NG OTH�� PI�C3VI�I01`�� "T�� RI�I�T 'T`O SELL �V�ATION FUTL TO
TH� I'LJBLZG FC)I� A I'TJEL �'LOVVAGE FE� AIrID TC� PRt]VIDE �C�IVIMEI��IAI. H�NGAI�
AND TIE-I�(�V�1 SE�VT�E AT TIIE DE.NT[)N M�TNICIPAL AIFF�.P�I�T T+�R R�AL
PRC7PERTY LUGATEL AT ��iC�fl TAXIWAY °`H}'; �1I�D, P�tt�VIDIN� AI'1 �FFECTIVE
I�ATE.
THE �C7T,�I'�iCIL C3� TH� CITY C)F D��1T(�N H�REBY (1ItDA1NS.
�ECTIC�N l. Ti�e City M�it�age� c�t° liis clesig�iee �s ��e�•eby ���tlxot��zed ta �xecute � Tlii�°c�
A�iaendt��e��t to� ��i�etl B�se C)�e��ata�� Lease a�ree���ez7t be��,v��n tile Ci�y 4f I�enton �nd Sy�Ces-
`Vat����az� Inv�st���et�ts LLC �'o�° t��� i�i��1t f� s��l aviatia�� ft�el ar�ci ���ovide l�a►���r �tic� �i�-do�vt�
s�ace at tlie DetYtari I4�unici�al Air��ot�t, in stz��tant�ally tl�e far��f of tlie T�ii�d A��aet1�����nt to t�i�
Fixed Base G�eratc�i` Lease A�r•eci��e��t tivllicl� is attacl�eci ta ���d ����cle a p�i�t of t11is a���i��anee fa�•
all �l���c�ses ��jd tc� e;�e�cise all ri��its a�ld tiuti�s of t��e Ciiy caf Deiiton ��t�c�e�° t�ie Fi�ec� B�se
Q��er�tor• Lease Agreemerit.
S�CTIaN 2, T11is c�l'di�lat�c� s1Y�11 l�ecc���3e effectiue i������ecii����yT k���€�n its ��ass��� ��ICi
����raval.
PASSE� AND .�FPRQVE� t��is tlte �, day df ����'`j�� .'��t� > 2fl12.
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JENNIFER WALTERS, CITY SEC�,TARY
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APPRQ!VED AS� "T'f� L�GAI� FORM:
tt'�NITA BUI�GESS, CIT� ATT�R�IEY
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BY: �`� °,� �'"= v
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STATE O�' TEXAS
COUNTY OF DENTON
THIRD AMENDMENT TO THE
AIRPORT LEASE AGREEMENT
WITH SYKES-VAUGHAN INVESTMENTS
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KNOW ALL MEN BY THESE PRESENTS:
T��is Third Az��endment is made executed to Ue effective as of the 6tli day of Marcl�,
2012 to tl�at certaij� Ai�-�ort Lease Agreement bet�vee�i the City af Denton, Texas, a j��tuiicipal
coi•��o�•ation, herei��after• �-e�'erreci ta as "Lessor" and SYKES-VAUGHAN INVESTMENTS LLC,
hereinaftei• i•efei•j�ed to as "Lessee" �v��ic�� ��vas exect�ted ta be effective as �f tl�e First day of
March 2009, ilerei�iaftei• referred to as "Base Lease".
WITNESSETH:
�VHEREAS, tl�e Lessor a��c! Lessee �vislz to amei�d the Base Lease to add a��p�•oximately
30,000 sc�t�are feet to ti�e Base Lease as Parcel J and to make ce�•taiil otl�er cha�lges ta tl�e Base
Lcasc;
NOW, THEREFORE, for and in co��side�•atiox� of k��e p�-o���ises a�i�i the uii�tz�al covenai�ts
contained iii t��is Agree�ne��t, the pa�-ties agree to amend t��e Base Lease as follows:
SECT�ON 1. Secfion II. A., B., and C., "Leased Preri�ises", Section N. A"Payi��e�its,
Reiitals and �'ees," a��c� Sectia�l VIII. A. a��d C. "Leaseholc� Im�rovemei3ts" are hereUy ameuded
so as to add the falloj�ing the�-eto:
II. LEASED PREMISES
Lessar, fo�• a��d in consideration of th� coven�nts and agt•eeme��ts herein contained, to be
kept i�y Lessee, a�1d sut�ject to t1�e conditions contai��ed lierei�l, does herel�y de��lise and Iease
�lz�to Lessee, and Lessee does llereby lease from Lessor, for tile lease term describec� in Article
XI�, #l�e �ollolvii�g described lat�d sihiateci in tile City of Denton, Dento�l Co�mty, Texas as sl�own
o�� Attacl����e��t A hereto:
A. LAND. Tl�e sau�e .68 acre (30,000 sq�iare feet) tr�et or �a�•cel of land Ieased to
Lessee undei� tile Eaisting Lease ide��ii�ed as �'arcet J, together �vith in�pz-ave�i�earts ti�e��eon, �vl�ieli
��raperty is ���or•e ���rticuiarly descri�ed in Attaclu�3e�11 "B", attacl�ed l�ereta a��d incoiporated her•ei��
by reference Tog�tl�er �vitii the rigl�t of ingress and �gress to the Leased Pre�llises; a�ld, tlie rigl�t in
ca��7���0�� ��7ith otliers so autllorized of passage ���on tlie Airport pro�erty ge��eraliy, su�ject to
reaso�lal�le regulatio��s by tife City of Denton and siicl� rights s11all extend to Lessee's er��ployees,
J�asse��gea�s, pat�-ons a�1d invitees. �or pur��oses of this Agreeme��t, the terni "Leased Premises"
silall i�iclt�de leasehold i�l�p�•ave��lents co�lstructed by t11a Lass�e, ��it 11ot includi�ig cei-t�in
ease�iie�its o�• p��aperty oti��led andlor ca��trolled Uy the L�ssor
A legal desc��iption of Pa�-ceI J is attacl�ed to tl�is Lease Ag�-eement as � pa�•t of Attaclu��ent
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B. IMPROVEMENTS PROVIDED BY LESSOR: Tl�e i���praveineiits provided l�y
Lessor, e�:ce}�t as set foi�tl� ia� A�-ticle II.E, "Aceess to Utilities" belorv, sha11 be as follor��s: I,essor
sliall co�istruct 3Q,000 sq��are feet of con�crete �•anap ��itlt �aved access to Taxiway "H", said
a•����� to iaicli�de constr�ictiol� of � tliree (3) foot tall aircr�ft engi�ie ext�ai�st blast wall �lo�ag tl�e
fiilI le��gtl� o� the �i�est sicie of tl�e ram�.
Tlae teri�l "Lessor i���provejize��ts" shall mean those things on or• adjacent ta t��e Leas�d Pre��iises
beloi�giz�g to, co��sti-�icted by, or to be co�ish-�icted by the Lessor. Unless othei-�vise noted herein, ail
Lessor i���p�•ove���ents are a�id wiil re���arn the property of Lessor. All Lessar iinprovements nnist be
c�ese�-ibe�i i�� del�il abo��e, or �3�ave refe�•eneed and attacl�ed to tl�is Ag�•eemej�t i�� a�i exliibit
a����roved by Lessor.
C. IM�'ROVEMENTS PROVIDED BY LESSEE.
7. Cozksii•i�ciion of Pat•cel J Impro�ements.__Lessee shal[ provide �II sei�•face p�i��ti�ag,
�i��Y�lcirig �nd sig��age uecess��•,y ta a�ca�ninodate Lessee's ��se of r�mp to be consti•€icted b,y
Lessoe•.
IV. �'AYMENTS RENTALS 11ND FEES
A. LAND RENTAL. La��d rei�tal sIaall be due a��d payable to Lessar iz� t�velve (l2) eqlial
monthiy iilstalh��ents in tlie sums set fortli belo�v, o�l or befo�-e tl�e lst c�ay of eacli aa�d
eveiy montll du�•i�ig tl�e term of t�us Lease Agreenaent following completion of the Lessa��
i���E�ro��e�nei�ts as described i�i Section II, B of tl�is Agreem�nt. L�ssee has tlle option to
pay a��z���al �-entals a��d fees in �vhole on ar before tlie lst day of Octol�er, at tl�e begii�un�;
of the City's fiscal year, each and erfery year of tliis Lease Ag��eejnei�t.
4. Pax•cel H. Base aiinual re�it sh�►11 be � sum of $1G,2Q0 a��ixnatly fo�• tlae la�ad �rea �t�ad
i�n�x•oveniet�ts as described i�� Sec#ion II, B. of t�is Agrecine�t (the "Origival Reut")
comine�aci��g o�i the �rst day of the �i�o�itl� follo«�i��g com�letion of tlte Lessae•
i�nproveinee�ts as described in Section II, B of tliis Agree�nent. Nlo�ithly reutnl shall
Ue 1/12t�' of the a����i�al �•e�xt, Ha�veve�•, Ueginning I1�Ia�•ch 1, 2D14 the Origin�l Rent
Fvill be adj�isted iu accordance `viftx Sectiau xV.C. o� tltis Aga•eeme�at. �a� �dditio�� ta
tEie Base Al�iii�a[ rent for Pa�•cel J, Lessee sliall pay Lessoi• � perceuiage of aIl haugae�
;�ncl tie-dorvn fees cQ[lected by Lessee frorri pe►'SOilS I•euting facilities o� Pa�•cel J. SucE►
fees st�all be equnl ta:
a. 10% of all h�ngar ;�iid tie-do�vn fees tE�ro€rgE� No��eniber 30, 2009.
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b. 11% of all haug:�r ai�d t�e-do����i fees tlirough November• 30, 2019.
c. 12% of a[I h�ngar and tie-do�va� �ees tl�roirgh the end of tl�e Le�se Tet•m.
AII sucli fees shal[ be paid montlily to Lessar o� or l�efoY•e tE�e ISt�' day of each
inoutt� d�n•ing the Lease Te��m. The fees s�x�►ll be accompa��ied by r•eco��ds s}�o�vi�ig
the date ai�d locatio� o� tlie Aii•part �vherc the aircraft f�as sto�•ed o�• pa�•ked a�c[
tlie t�il �iumbei•, o�� side n�rmUe�•, of the ai�•c��aft.
VIII. LEASEHOLD IMPROVEMENTS
A. REOU�REMENTS: Before conu�ieiici�ag tlae constil�ctio�� of any additio�3al irr��roven�ents o��
tlle Leasec� Pre�l�ises iilclud'uig tl�e P�rcel J T�npa�oveinents (t1�e " Additio��al Lease Iinprotremej�ts"),
Lessee sliall sl�bmit:
1. Docui��e��takia�i, specificaiio�is, or desigu �iTork, to l�e appi•oved by tl�e Lesso�•, «�l�iel�
sha11 establisli tl�at tlie improveme�lts ta be b��ilt or C0115t11YCt�C� upon ti�e Leased
Premises ai•e in confor�na��ce witil tlie overall size, shape, calor, c�uality and design, iai
ap��eara�iee arld st�lich�re of the progra��� established by Lessor o�� tlle Ait-�ort.
2. All ��la�as and s�eci�catiot�s showifig the locatio�a ��pon tl�e Leaseti P�'e��iises of The
proposed co��st�-��ctio�� and ii���rovements;
3. Tlie esti�Y�ated cost of such ca��st�uction.
No coizsti�rctio�l ���ay con�nence �intil Lesso�- has a�pra��ed tl�e plans a�1d speci�cations and
the locakion of ilie Le�se Ln�sroveme��ts, it11CI t�l� �Sf3112aie� COStS OFSLiCIl C0115�2UC�lOi1. A�l�l'OV�� �y
the Lessor shall ��ot be ui�►easonably witEilield, Doctir��enta�•y evidea�ce o� tlle achlal co�t of
co�ist�-�lctio�� o�i ��t�blic areas anly {suel� as taxi�vays, a�ro��s or parking lots) shali Ue deiivereci by
Lessee lo Lessor's City Ma»ager from ti�1�e to tiine as sucl� costs are paid l�y Lessee, aud Lessor's
City Mai�age�• or desi�uee is l�ereby �utiinrized to etzdo�•se upo�i a copy of tlus Lease Agreeme��t
filed witl� the City Seeretary of Lessor s��cil actual a��1ou��ts as lie sl��ll have fai�ud to have been paid
by Lessee, at�c� tlle f�iidings of tlie City Ma��ager ��JIle�1 eiidorseci by l�i��� �ipon said contract sllail be
coucl��sive t�}�ot� ali pai�ties foa• all p�uposes of this Lcase Agree���e�it.
No later t11an 30 days aft�r coz��pleEio�� of tlie Additional Lease liizprovemetzts, Lesse� siiali
s��lmlit ta Lessor c�etailed as built �lans of ti�e Additia��al Lease I�nprovei��ents aild daci�t���ntary
evide�ice acceptable to Lessor e��ide�lcu��; tlie tot�l cost to coilst�llct the Lease �i�3prove��ients ("Cost
to Const��uct Lease I�nprove��ie�Its"}.
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C. OtiVNERSHIP OF IMPROVEMENTS: Tlie Lesso�� Imp�•ovements at�e t�te propern� of t�e
Lessoe•. Lessee sii�ll p�•avide n leg�►1 descripiio�i aud se�rvey uo [ater tli��i 30 d���s ix�om the
effective date of this �g�•ee�ite�it identified as Attacliinei�t `B" icIe�rtifyi��g ParceI J. Additio���l
Lease IY�i��•ove���e�its, ►vlien ca�ttp�eted b�� Lessee, (tlie "Lease In�pt�oveme��ts"} s���tll be
suE�ject to the follo�vi�ig couditioa�s, te�-ms and pt•or�isions:
I. Re�l�oval of_Bt�iidin�s. No bi�ildiilg or }3eri��a��e��t fixture niay �e removed fioiil the
Leased Premises.
2. flsst�mt�tioil, Tlie Lease Ia��pra��e��ieiits sllali autoi��aticaliy Ueco���e the ��ropet-ry of
Lessor absolutely fi•ee, ��jitlio�it at�y cost to Lessar, at tlie end of the Lcase Ter�i�, or
a��y eYtensiar� tilereof.
3. Failure to Caj�iulete Parcel J Im�i•ovezi�ents, The linprov�i�le��ts shaIl i2��nediately
beco��le the praperty of Lesso�• at no cost, expei�se, o�• con��e��sation to Lessee s��ould
Lessee fail to conlplete the Lessee's Impro��ei��ents ���itivn the Const�l�ction Pcriod as
�rovided i�l Section �I.C. of tl�is L�ase Agreeme�it.
4. Cai�ceilatio�i or Tern�i�lation. Should t��is Lease Agreeinent l�e cancelled or terini��ateti
be�ore the e��d of ti�e Lease Term, o�• extensio�� tl�e�-eof, Lesso�- shall lla��e tl�e �'ight to
p�irchase all of the Lessee Improve3�lents, I�i ihe event of a ca��cell�tion or
ter��iinatio�i, otl�e�- t��a�� c�ue to a defacilt l�y Lessee that has ��ot t�een et�red as provic�ed
belo�v, tl�e ��i�•ch��se ��z•ice siiall l�e ec�i�al to tl�e ��7ost rece�it value of the L�ase
Il1I�]1'O�rET11e11iS aS Cl��ei'1111i1Ct� t?j� ��le D017k027 COUIii}� C8rit1'�I A�7�31'�lS�i DISt11Ci �"Vaili�
of tlle Leas� I�liprovei��ents") redt�eed by 1/30 foz- eacl� year of tiie Lease Te���l that l�as
expired as af tlie clate of terinination (the "Pu�-cl�ase �'�•ice"). Witt� regard to Additioi�al
Lease Improveil�e�its, slzould the De�lton Ca«uty Ce�it�-al Appraisal Distz-ict not
detei•mi��e a separate val�ie for tlie Lease �n��•ovements, or sllo��ld sucl� separate
valuatio�� i�e older than hvo years, the�1 tiie Purcliase Pcice will i�e determi��eci taki�3g
tlle Cost to Coi�stri�et tl�e Lease Iii�praveiileiits reduc�d by 1/30 for each yea�� tl�e Lease
Te�•i�� has ex�ired as of tlie date of tez-►�li��atian. If tlle ter�lii��ation o�• c�i�c�Iiatioil is due
to a defaiilt by Lessee tlia# has not Ueeii ci��-ed witl�i�� 30 �ays after ��Tritten notice of
defauit to Lessee, tlien tlie Purcl�ase P�•ice as ciete��nineci abave shall be redl�ced by
Sa%. Howevei•, if Lessee pravides �vr•itten iiotice to Lessoa- withizi s�id 30 day ciii•e
��e�-iod that it is i���possible to cure s�icli defaE�lt �vithin said tii��e pe�-iod, tl�ez� tl�e Lessor
may co��se��t to a�� exte��sion OF 511C�1 tin�e to ci�re, �vi�ich consent will r�ot be
ii��•easor�ably �vikl�ield. Ti�is clause s}zall i�ot a�ply to tlie Fz�el Farm.
SECTION 2. Save aud exee�t as amended liez•eby, a11 the �-e�a�ai��i��g ciauses, se��tei�ces,
paragr•t�phs, sectio�ls and s��[�sections of the Base Lease shall ref��ain in fiili force a�ici effect aa�d
si}all fiilly ap}�ly io tl�e additio��al praperty aiid improvements aud eYpanded Leased Pre�nises
res�tltin� ii�o��� this Tl�ii-d Aniei�d�11c�1t of tl�e Base Lease.
Page 4 of 6
li'� 1�VIr�'I�,rESS WHEFtI�"!C�F, tl�e ���rties 13����e exe�riteci tl�i$ Lea�e A����ei�ici�t �s c�f t���
effecti��e ci�tte fit�st abave t���-ifteii.
C]T�r O� DE�TQN, `I'E�A�, I�ESSU�Z
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ATTBST,
J�I'�NIFER �h�AL�'EItS, CITY SEC�TAR`i'
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Rt�PER V� GHAN, N� AGII�G PART�ER
A.CKN�`�JLEDGMENTS
THE �'I'�.TE �F TEXr�.S
CC)U��TT4r �QF D�I�T��
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Tl�is �iist�l�ui3��1t i�ras a��a�otvieti�eci 1�efo►�e �ne �l� tl1e�,�� c1ay� of ������.:t�=�,� ., 2012, t�y
C�ec�l•�e C`. C'�tit����iell, Cit� �i�iifi�c�• af tl�e �ity a� Dcutat�, Tcx�s, o�l �ac�i�lf of saicl �i���nici��ality.
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COUNTY O�' DENTQN
T�lIS I115�1111I1ei1� �ir�35 c'1C�CIlO�i'iedged beiare n�e o�l the� J� day of �ir� , 2012 by
Ro}�er Va�ig3�n, Mailagiiig P�rtiler fo�� Sy�es-Va��gl��n Investments LLC, a Texas nnited li�bility
COI11�lc�Ily, 0�1 �el�alf of said com�any.
``�S�RYPUB�! ANDR�A J. AiKf�1SON
::°�'� :�'= �fotasy Public, 5tate o# Texas
My Cammission Expiras
"'.',,�;, ,E+''' Ma€ch 25, 2014
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NQTARY PUBLI TATE OF TEXAS
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