2013-321ORDINANCE NO. 2013-321
AN ORDINANCE APPROVING A FIRST AMENDMENT TO A COMMERCIAL
OPERATOR AIRPORT LEASE AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS
AND NEBRIG PROPERTIES, L.P. FOR ASSIGNMENT TO SYKES - VAUGHAN
INVESTMENTS, LLC; AND, PROVIDING AN EFFECTIVE DATE.
WHEREAS, on September 17, 2013, the City of Denton, Texas (hereinafter the "City ")
entered into that certain Airport Lease Agreement (hereinafter the "Agreement ") with Nebrig
Properties, L.P. to lease property located at 4849 Spartan Drive, Denton, Texas as approved by
Ordinance 2013 -258 as subsequently amended; and,
WHEREAS, on October 30, 2013, the City received a request from Nebrig Properties,
L.P. to consider a Lease Assignment of Pad Site At Denton Airport to Sykes- Vaughan
Investments, LLC; and,
WHEREAS, certain amendments to the Airport Lease Agreement in substantially the
form attached hereto and made a part hereof (hereinafter the "Amendment ") are necessary to
effect a transfer to the Sykes- Vaughan Investments, LLC; and,
WHEREAS, at a meeting on November 11, 2013 the City of Denton Council Airport
Committee recommended approval of said Amendment; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON, TEXAS HEREBY ORDAINS:
SECTION 1. The City Manager or his designee is hereby authorized to execute an
Amendment of the Airport Lease Agreement between the City and Nebrig Properties, L.P. to
assign the Agreement to Sykes- Vaughan Investments, LLC in substantially the form of the
Amendment 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 N0\ fpmbQir_ , 2011
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY ff�
APPROVED AS TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
0 "O „
Page 2
FIRST AMENDMENT TO THE AIRPORT LEASE AGREEMENT
WITH NEBRIG PROPERTIES, L.P. FOR 4849 SPARTAN DRIVE, DENTON, TEXAS
STATE OF TEXAS
KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF DENTON
This First Amendment is made and executed to be effective as of the 19th day of
November, 2013 to that certain Airport Lease Agreement between the City of Denton, Texas, a
municipal corporation, hereinafter referred to as "Lessor" and Nebrig Properties, L.P.,
hereinafter referred to as "Lessee" which was executed to be effective as of the 17th day of
September 2013, hereinafter referred to as "Base Lease ".
WITNESSETH:
WHEREAS, the Lessor and Lessee wish to amend the Base Lease to transfer ownership
of the Base Lease to Sykes- Vaughan Investments LLC, hereinafter referred to as "Lessee -
Assignee" and to make certain other changes to the Base Lease;
NOW, THEREFORE, for and in consideration of the promises and the mutual covenants
contained in this Agreement, the parties agree to amend the Base Lease as follows:
SECTION 1. Nebrig properties, L.P. as original Lessee herby assigns all of Lessee -
Assignor's rights and responsibilities associated with the Base Lease to Sykes- Vaughan
Investments, LLC as Lessee of record.
SECTION 2. Sykes- Vaughan Investments, LLC assumes Lessee - Assignor's rights and
responsibilities associated with the Base Lease to be operated as a part of their business
providing Fixed Base Operator service under the Airport Lease Agreement first approved by
Ordinance 2009 -018 dated January 6, 2009.
SECTION 3. Section 111. "Term ", Section IV. D., "Other Payments To Lessor ", Section
V. A. "Rights And Obligations Of lessee" and Section XV. D. "Notice" are hereby amended as
follows:
III. TERM
The term of this Agreement which was originally for a period of thirty (33) years
commencing on the 17th day of September, 2013, is amended effective November 19, 2013 to be
for a term of thirty -five (35) years and four (4) months continuing through the lth day of March
2049 in conformance with the maximum lease period of the Sykes- Vaughan Investments, LLC
lease dated January 9, 2009 as approved by City of Denton Ordinance 2009 -018 as subsequently
amended.
Page 1 of 5
IV. PAYMENTS, RENTALS AND FEES
Lessee covenants and agrees to pay Lessor, as consideration for this Lease Agreement, the
following payments, rentals and fees:
D, OTHER PAYMENTS TO LESSOR.
1. Hangar and Tie -Down Fees. Lessee shall pay Lessor a percentage of all hangar and tie -
down rentals and fees collected by Lessee from persons renting facilities on the Leased Premises.
Such fees shall be equal to:
a. 10% of all hangar and tie -down fees through November 30, 2009.
b. 11 % of all hangar and tie -down fees through November 30, 2019,
c. 12% of all hangar and tie -down fees through the end of the Lease Term.
All such fees shall be paid monthly to Lessor on or before the 15th day of each month during the
Lease Term. The fees shall be accompanied by records showing the date and location on the
Airport where the aircraft was hangared or parked and the tail number, or side number, of the
aircraft.
V. RIGHTS AND OBLIGATIONS OF LESSEE
A. USE OF LEASED PREMISES. Lessee is granted the non - exclusive privilege to engage
in or provide the following on the Leased Premises:
1. The right and privilege to engage in commercial aviation activities as defined in Ordinance
2009 -018 dated January 9, 2009, to include operation as a part of the Fixed Base
Operator service conducted by Sykes- Vaughan Investments, LLC.
XV. MISCELLANEOUS PROVISIONS
D. NOTICE. Any notice given by one party to the other in connection with this Lease
Agreement shall be in writing and shall be sent by certified mail, return receipt requested, with
postage fees prepaid or via facsimile as follows:
1. If to Lessor, addressed to:
Director of Aviation
Denton Enterprise Airport
5000 Airport Road
Denton, Texas 76207
FAX 940 - 349 -7289
Page 2 of 5
2. If to Lessee, addressed to:
Mike Sykes, President/CEO
Sykes- Vaughan Investments, LLC
4850 Spartan Drive
Denton, Texas 76207
FAX 940 - 381 -5383
SECTION 4. Save and except as amended hereby, all the remaining clauses, sentences,
paragraphs, sections and subsections of the Base Lease shall remain in full force and effect and
shall fully apply to the additional property and improvements and expanded Leased Premises
resulting from this First Amendment of the Base Lease.
IN WITNESS WHEREOF, the parties have executed this Lease Agreement as of the
effective date first above written.
CITY OF DENTON, TEXAS, LESSOR
BY: �
( U)RC, C. CAMPBELL, CITY MANAGER
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
�
BY
k &
APPROVED AS TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
Page 3 of 5 Goo
DREWCY INC., GENERAL PARTNER
NEBRIG PROPERTIES, L.P.
IBM
SYKES- $VAUGHAN INVESTMENTS, LLC
BY:
1KE
S"KIA;S° ESIDIANVCF.01
ACKNOWLEDGMENTS
THE STATE OF TEXAS
COUNTY OF DENTON
This instrument was acknowledged before me on the �, day of e ° ,. 2013 by
George C. Campbell, City Manager of the City of Denton, Texas, on behaI °'ol''said municipality.
JANE dim VIA CH iiu� ;i'1
state of Texas
i mp Stine 27 1, 2017
THE STATE OF TEXAS
COUNTY OF DENTON
ro
Nt I "ARY PUBLIC, STATE OF TEXAS
This instrument was acknowledged before me on the f day of ( 2013, by
Mike Nebrig, President of Nebrig Properties, L.P. on behalf of said company.
A A A �. AAA .
JOAN M. DAMS
1 "ARY PUBLIC STATE OF TEXAS
My Commission Expires
May 16, 2014
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Page 4 of 5
THE STATE OF TEXAS §
COUNTY OF DENTON
This instrLinient was acknowledged before ine on t1w of day, "
A L V. t, 2013 by
Mike Sykes, President/CEO for Sykes-Vaughan Investments, LLC on behalf of said company.
NOTARY PUBLIC, S"t"ATE OF TEXAS
NM--NW .. w1wom
ANDREA J. ATKINSON
Notary Public, State of Texas
My Commission Expires
March 25, 2014
Page 5 of 5
LEASE ASSIGNMENT OF PAD SITE AT DENTON
ENTERPRISE AIRPORT KNOWN AS 4849 SPARTAN DRIVE
DATE: October 30, 2013
ASSIGNOR: Nebrig Properties, L.P,
ASSIGNEE: Sykes - Vaughan Investments, LLC
LEASE: Date.
Landlord: City of Denton
Tenant: Nebrig Properties, L.P.
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 title transfer obligations of property improvements from Assignor prior to
this assignment becoming effective.
B. Landlord consents to this assignment and agrees that:
1. Nebrig Properties, L.P. assigns all rights and responsibilities under their ground lease to
Sykes- Vaughan Investments, LLC;
2. Sykes- Vaughan Investments, LLC assumes sole responsibility for performance of terms
and conditions of the ground lease;
3. Sykes- Vaughan Investments, LLC assumes Lessee - Assignor's rights and responsibilities
associated with the Base Lease to be operated as a part of their business providing Fixed
Base Operator service under the Airport Lease Agreement first approved by Ordinance
2009 -018 dated January 6, 2009.;
4. The term of the lease shall be concurrent with the Sykes- Vaughan FBO lease.;
C. Assignor agrees that:
ffective on the same date as ownership transfer of
1. Assignment of lease shall become e
improvements on leased property;
PREVIOUS ASSIGNMENTS;
Original Date of Lease between City of Denton and Nebrig Properties, L.P
m.:.� -:,
Nebrig Properties, L.P., Assi
Mire Nebrig, N , -es
Sykes- Vaughan Investments, LLC, Assignee:
Mike Sykes, Pi-es f ift "TO
:N
Consent by City of Denton, Landlord:
��rge C. Campbell, City Manager