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2013-006Selvidge lease assignment to Pedron ORDINANCE NO. 2013-006 AN ORDINANCE APPROVING ASSIGNMENT OF A COMMERCIAL OPERATOR AIRPORT LEASE AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND JOHN K. SELVIDGE DATED MARCH 7, 1995 TO PEDRON AIRCRAFT WORKS, L.L.C.; AND PROVIDING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON, TEXAS HEREBY ORDAlNS: SECTION 1. The City Manager or his designee is hereby authorized to execute an assignment of a Commercial Operator Airport Lease Agreement between the City of Denton and John K. Selvidge dated March 7, 1995 to Pedron Aircraft Works, L.L.C. in substantially the form of the Lease Assignment Of Pad Site At Denton Municipal Airport which is attached to and made a part of this ordinance for all purposes. SECTION 2. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the �� day of , 2013. � MARK A � BU , AYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: � �.-. APPR ED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY � BY: � LEASE ASSIGNMENT OF PAD SITE AT DENTON MUNICIPAL AIRPORT DATE: December 20, 2012 ASSIGNOR: John K Selvidge, 1104 Lynhurst Ln. Denton, TX 76207-8006 ASSIGNEE: Pedron Aircraft Worlcs, LLC. 4736 Clearstar L. Denton, TX 76207 LEASE: Date Landlord: Tenant: March 7, 1995 City of Denton John K. Selvidge Premises: The Property located at 926 Aeronca Drive, Denton, Texas 76207 and more fully described in the Airport Lease Agreement which is made part of this assignment for all purposes. Assignor assigns to Assignee Tenant's interest in the lease. A. Assignee Agrees To: 1. Assume Tenant's Obligations under the lease. 2. Accept the premises in their present "as is "condition. 3. Complete all obligations of purchase from Assignor prior to this assignrnent becoming effective. Landlord consents to this assignment, Landlord agrees to notify assignor within 30 days of any assignee default. B. Landlord (City of Denton) consents to this assignment. 1. Assignor will pay or will have the assignee pay landlord a$500.00 transfer fee. 2. Assignor will pay or will have the assignee pay all the landlord's handling and processing this agreement, including, without limitation, attorneys' fee and landlords staff time associated with this assignment. C. Landlord (City of Denton) agrees to the following contract amendments: administrative costs of all landlord's reasonable 1. Under Article II, Section C. Right of Individuals to Maintain Aircraft It is clearly understood that no right or privilege has been granted which would operate to prevent any person , firm, or corporation operating on the airport from performing any services on it's own airctraft with it's own regular employees (including, but not limited to, maintenance and repair) that it may choose to perform, and the lessee may use the property for the purpose of aircraft maintenance related business as performed by the lessee, by regular employees of the lessee, or ovcmers of aircraft contracted to the lessee. 2. Under Article III, Term The term of this Agreement shall be for a period of years commencing on the 7th day of March, 1995, and continuing through the 30t1i day of April, 2025, unless earlier terminated under the provisions of the Agreement. Lessee shall have first rights of lease negotiation and renewal. 3. Under Article V. Rights and Obligations of Lessee Perform aircraft maintenance related business as performed by the lessee, by regular einployees of the lessee, or owners of aircraft contracted to the lessee. PREVIOUS ASSIGNMENTS: Original Date of Lease: between City of Denton and John K. Selvidge � �� •� . � 2-21- 2O l2 For John K. Selvidge, Assignor � i�`� l-u J(�_ i'Ll 2� I�� z. Phillip E. e o, Pedron Aircraft Wor s, L C. Assignee Consent: Ci of Den , , By: Name: ��`�,C � - Title: ��T v /�ii9NACa�,� ATTEST: JENNIFER WALTERS, ITY SECRETARY BY: �„ - APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: THE STATE OF TEXAS COUNTY OF DENTON AIRPORT LEASE AGREEMENT COMMERCIAL OPERATOR � § KNOW ALL MEN BY THESE PRESENTS: § This lease is made and executed this � day of ;��c-C� ; 1995, at Denton, Texas, by and between the City of Denton, Texas, a municipal corporation, hereinafter referred to as "Lessor", and John K. Selvidge, having his principal offices at Rt. 1, Box 330, Sanger, Texas, hereinafter referred to as "Lessee". 1PITNESSETH: 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, for and in consideration of the promises and the mutual covenants contained in this Agreement, the parties agree as follows: I. CONDITIONS OF AGREEMENT NOTWITHSTANDING ANY LANGUAGE TO THE CONTRARY HEREINAFTER CONTAINED, THE LANGUAGE IN PAR.AGRAPHS 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 Lessee subject to Lessee agreeing: 1. To furnish said services on a fair, equal and not unjustly discriminafory basis to all users thereof; and 2. To charge fair, reasonable and not unjustly discriminatory prices for each unit or service; provided, that Lessee may be allowed to make reasonable and nondiscriminatory discounts, rebates, or other similar types of price reductions to volume purchasers. B. NON-DISCRIMINATION: Lessee, for himself, his personal representatives, successors and interests, and assigns, as a part of 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, �.TGd 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. 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, Nondiscrimination in Federally as_sisted.programs of the Department of_Transpor- tation - Effectual of Title VI of the Civil Rights Act of 1964, as�said Regulations may be amended. C. RIGHT OF INDIVIDUALS TO MAINTAIN AIRCRAFT. It is clearly understood by 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 Lessee, and without interference 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 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 Selvidge Lease Ag�eement - Page 2 �Jtid 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 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 conside�ation 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 26,791 square feet, or 0.615 acres, drawn and outlined on Attachment '�A", and legally described in Exhibit "B", such attachments being incorporat- ed 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 identif ied within Exhibit "B", including leasehold improvements constructed 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 the survey plat of the T. Toby Survey A-1285, Denton County, Texas attached hereto as Exhibit "C", (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 Exhibit "C". 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 ments" shall constructed increases, o. leased land � improvements purpose of this Agreement, the term "Lessor improve- mean those things on the leased premises belonging to, �y, or to be constructed by Lessor, which enhances or - will enhance or increase, the value or quality of the ►r property. Unless otherwise noted herein, all Lessor are and will remain the property of Lessor. All Lessor Selvidge Lease Agreement - Page 3 �� improvements must be described in detail above, or above referenced and attached to this Agreement in an exhibit approved by 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 th' greement .all be for a period of years,� com- mencing on the ��day of , 1995, and continuing through the 30th day of April, 2025, unless earlier terminated under the provisions of the Agreement. Any attempt by Lessee to renegoti- ate this Lease shall be in writing addressed to the City Manaqer 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. pAYMLNTB, 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 Two Thousand One Hundred One and 81/100 Dollars ($2,101.81) per year, payable in twelve (12) equal monthly installments in the sum of One Hundred Seventy-five and 15/100 Dollars ($175.15) 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. All payments due Lessor from Lessee shall be delivered to the Airport Manager, unless otherwise 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 Selvidge Lease Agreertient - Page 4 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 = 1D0). 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 year�y rent as set- €or.th. in Section IV.A. by a fraction, the r�umerator of which is the index number for tiie iast month prior to the adjustment, and the denominator of wl�ich is the index number for April, 1990. 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 �s set forth in Section IV.A., there shall be no adjustment in the annual r�nt 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 Consumer� (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 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. Selvidge Lease Agreement - Page 5 1 ' ;� V. RIGHTS AND OBLIGATIONS OF LESSEE A. USE OF LEP,SED PREMISES. Lessee is granted the non-exclusive privileqe 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 Storage 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 his mailing addresses, telephone numbers and contacts where he can be reached in an emergency. 2. List. Lessee shall file with the Airport Manager and keep current a list of his tenants and sublessees. 3. Conduct. Lessee shall contractually require his employers and sublessees (and sublessee's invitees) to abide by the terms of this agreement. Lessee shall prompt3y enforce his 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 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 Selvidge Lease Agreement - Page 6 �l � `�► 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 Pronertv_. Lessee �shall be responsible for the maintenance, repair and upkeep of all property, build- ings, structures an� 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. Un�authorized use of bremises. 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. Dwellinas. 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 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. 4uiet 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 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. 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 Selvidge Lease Agreement - Page 7 `� , 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. VI. COVENANTS BY LE880R 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 Selvidge Lease Agreement - Page 8 �/ 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 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 of adjoining property in the course of normal take-off and landing procedures from ..said �ento� .Munic�pal Airport;. , Le�sor fur�her wa�rants and represents thatfat all times during the term hereof, or any renewal or extension of same, that it will continue to comply with the foregoing. VII. SPECIAL CONDITIONS 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 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 Lessee to liability for any damages to the Airport that might result. VIII. LEASEHOLD IMPROVEMENTB A. REOUIREMENTS: Before commencing the construction of any improvements upon the premises, Lessee shall submit: Selvidge Lease Agreement - Page 9 � �� 1. Docwaentation, 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 Lessor on the Airport. 2. Al1 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�� i�provements, the estimated-�costs af 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 are 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 Manaqer when endorsed by him upon said contract shall be conclusive upon all parties for all purposes of this agreement. 8. ADDITIONAL CONSTRUCTION OR IMPROVEMENTS: Lessee is hereby authorized to construct upon the land herein leased, at his 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: All 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 Buildinas. No building or permanent fixture may be removed from the premises. 2. Assumbtion. All 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 Lessor absolutely in fee without any cost to Lessor. Selvidge Lease Agreement - Page 10 �, `� 3: Buildina Life. It to be constructed b thirty (30) years. 4. is agreed that the life of the building y Lessee on the property herein leased is Cancellation. Should this lease be cancelled for any reason before the end of the thirty (30) year expected building life, 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 thirtieth (1/30) 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. • I%• 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. R. RIGHT OF EAgEMg1�T'1' 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. BI• ASSIGNMENT OF LEASE Lessee expressly covenants that it will not assign this lease, convey more than ten percent (10�) of the interest in his business, through the sale of stock or otherwise, transfer, license, nor sublet the whole or any part of the said premises for an except for rental of hangar space or tie-down space, w t out �the Selvidge Lease Agreement - Page 11 � �� except for rental of hangar space or tie-down space, without the written consent of Lessor. Lessor agrees that it will not unreason- ably withhold its approval of such sale, sublease, transfer, license, or assignment of the facilities for the airport related purposes; provided 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. %II. INBIIRANCE A. RE4UIRED IN„ SiJRANCE: 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. A1� 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. All policies must be approved by the Lessor.. 7. The Lessor shall be provided with a copy of all such policies and renewal certificates. During the term of this lease, Lessor herein reserves the riqht 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 Selvidge Lease Agreement - Page 12 �'! ld 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 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. SIII. CANCELLATION BY LSBSOR 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 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 C.4. (Cancellation) hereof. XIV. CANCELLATION BY LE88EE 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 juris- diction of a permanent injunction in any way preventing or restrain- Selvidge Lease Agreement - Page 13 Xll� ing the use of said airport or any part thereof for airpo�t pur- poses; (2) the breach by Lessor of any of the covenants or agree- ments 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, of the maintenance and operation of said airport and facilities or any substantial part or parts thereof. Ugon 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. MISCELLANEOIIS 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. All covenants, stipulations and agreements herein shall extend to, bind and inure to the benefit of the legal representatives, successors and assigns of the respective parties 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. NOTICE. 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: 1. If to Lessor, addressed to: City Manager City of Der�ton Denton, Texas 76201 SeLvidge Lease Agreement - Page 14 �� 2. If to Lessee, addressed to: Mr. John Selvidg�e �� U � �..p�� O� ' 6 ��11�'t� T� °7�c`�� 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 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 accqrdance 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, TEXA5, LESSOR BY: ATTEST: NNIFE WALTERS, CITY SECRETARY ITY 0 DENTON, TEXAS BOB CASTLEBERRY, MA APPROVED AS TO LEGAL FORM: MICHAEL A. BUCEK, ACTING CITY ATTORNEY CITY OF DENTON, TEXAS �' . JOHN K. SELVIDGE, LESSEE Selvidge Lease Agreement - Page 15 �� THE STATE OF TEXAS § COUNTY OF DENTON § This instrument was acknowledged before me on the � day of , 1995 by John K. Selvidge. N Y PUBLIC, STA OF TEXP,S My Commission Expires: �� R�Y�PUe( 1EANET�E SCQTT �' n •; • �QiARI' PUBLIC, STATE OF TEaG4S �'*rf oF J�.±'y My Canmission Expires Marcfi 31,1991 Selvidge Lease Agreement - Page 16 � • -� � i `. ', i i � No t�T�{. 0 :?'� i 1 �X I�IT A � �. . ��_ . 'r. ' .. - ' , :ro3� ,r.''3y1 �,��,�� 14 � . .. ' � ��`' '`�Jf,y!�'v ��,� 4` ' � . . � F'�N- ' D. ' 6 . . . S�r•..� �#� ' � �� ..r��. R� �' 1 � : ' + • d,'' ' . �'1 �.�*P. !r . t . : . M} \ " .. �� i,��:.� �� - m� X W NN'e1� � Ex 1sZ-� N � PRoQER�Y ��NE PAVED DRIVE FIELD NOTES TO 0.615 ACRE TRACT ALL that certain lot, tract, or parcel of land situated in the T. Toby Survey A-1285, Denton County, Texas, bein certain 2.196 acre tract of land described in-a 1 ease tag eement between Brown & Brown, a partnership, and the City of Denton, Texas as shown on a plat showing 2.196 acres and signed by Jerald D. Yenson, R,P.L.S. No. 4561 dated September 6, 1994, Job No. 946269, and being a tract as calculated and compiled �rom the above referenced plat by Joy C. Green, R.P.L.S. No. 1797 on January 31, 1995 and being more particularly described as follows: BEGINNING at the southwest corner of Tract C as shown on the above referenced p1at; THENCE north 0° Ol' 22" east a distance o€ 148:31 feet to a point for corner; THENCE north 89° 21' 10�� west a distance of 17.15 feet to a oin for corner; P t THENCE north a distance of 11.3 feet to a point for corner; THENCE east a distance of 145.18 feet to a point for corner; THENCE south 25° 38' 44" east a distance of 177.27 feet to a point for corner; THENCE west a distance of 204.82 feet to the Point of Beginning and containing 0.615 acres of land. AEE004CB D � � �� F�� - 1 199� �.:C1TY OF DENTON LEGAL DEPT. ' �' EXH(BIT � Y � � � . � _