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2009-323 \\codad\departments\legal\oi'.documents\ordinances\09\airport us aviation group amendment.doc ORDINANCE NO. ZDOGI- ,32,3 AN ORDINANCE AUTHORIZING THE CITY MANAGER TO APPROVE A FIRST AMENDMENT TO A FIXED BASE OPERATOR AIRPORT LEASE AGREEMENT APPROVED BY ORDINANCE 2009-018 DATED JANUARY 6, 2009, BETWEEN THE CITY OF DENTON, TEXAS AND SYKES-VAUGHAN INVESTMENTS (US AVIATION GROUP) AT THE DENTON MUNCIPAL AIRPORT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, certain real property upon the Denton Municipal Airport was leased to Sykes-Vaughan Investments (US Aviation Group); and WHEREAS, the City of Denton and Lessee desire to amend the lease agreement; and WHEREAS, the Airport Board recommends approval of the Amendment; and WHEREAS, the City Council deems it in the public interest to approve this Assignment of the Lease; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Manager or his designee is hereby authorized to execute a First Amendment to a Fixed Base Operator Airport Lease Agreement between the City of Denton and Sykes-Vaughan Investments (US Aviation Group) at the Denton Municipal Airport, in substantially the form of the First Amendment to the Fixed Base Operator Airport Lease Agreement which is attached to and made a part of this ordinance for all purposes and to exercise all rights and duties of the City of Denton under the Airport Lease Agreement. SECTION 2. This ordinance shall become effective immediately upon its passage and approval. / PASSED AND APPROVED this the --day-of f 2009. M RK - b4zO ,MAYOR ` ATTEST: JENNIFER WALTERS CITY SECRETARY BY: ' APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: G 41 cAdocuments and settings\jamullin\local settings\temporary internet files\content.outlook\7etlhfkm\exhibit 2 amendment.doc FIRST AMENDMENT TO FIXED BASE OPERATOR AIRPORT LEASE AGREEMENT THE STATE OF TEXAS 5 5 KNOW ALL MEN BY THESE PRESENTS COUNTY OF DENTON § This First Amendment to that certain Fixed Base Operator Airport Lease Agreement which was made and executed on January 6, 2009 at Denton, Texas, by and between the City of Denton, Texas, a municipal corporation, hereinafter referred to as "Lessor," and Sykes-Vaughan Investments (US Aviation Group), hereinafter referred to as "Lessee". WITNESSETH: WHEREAS, the Lessor and the Lessee has requested an amendment of the Lease term and the City Manager and the Airport Advisory Board support the amendment of the Lease; NOW, THEREFORE, in consideration of the promises and the mutual covenants contained in this Agreement, the parties agree as follows: SECTION II. OF THE LEASE IS HEREBY AMENDED TO READ AS FOLLOWS: A. LAND. The same .78 acre (34,000 square feet) tract or parcel of land leased to Lessee under the Existing Lease identified as Parcel A, together with improvements thereon, which property is more particularly described in Attachment "B", attached hereto and incorporated herein by reference (the "Existing Parcel"), and- an additional approximate 168,208 square feet of land identified as Parcel B (13,448 square feet), Parcel C (7,760 square feet), Parcel D (90,000 square feet), Parcel E (50,000 square feet), Parcel F (2,000 square feet) and Parcel G (7,500 square feet) on Attachment "C" (the "Leased Premises"). Together with the right of ingress and egress to the Leased Premises; 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 employees, passengers, patrons and invitees. For purposes of this Agreement, the term "Leased Premises" shall include leasehold improvements constructed by the Lessee, but not including certain easements or property owned and/or controlled by the Lessor, with the exception of Parcel G which easement shall be considered "Leased Premises". A legal description of Parcels B, C, D, E, F and G is* not currently attached to this Lease Agreement. Lessee shall deliver to Lessor 1 'f no later than 30 days after the Effective Date of this Agreement a legal description of Parcels B through G accurately describing same that is acceptable to Lessor. If Lessee fails to do so, Lessor at its option may terminate this Agreement as to Parcels A through G, in which case it will have no further force and effect. The approved legal description will be attached to this Agreement as Attachment "C". SECTION II. D. OF THE LEASE IS HEREBY AMENDED TO READ AS FOLLOWS: D. EASEMENTS. Lessor and Lessee by mutual agreement may establish, on the Leased Premises, easements for public access on roads and taxiways. Lessee acknowledges taxiway rights of way exist through the existing aircraft apron identified in Parcel D and right of way exists for Spartan Drive going west through Parcel G to provide access to the aircraft operations area. Lessee further acknowledges that no permanent surface cover may be constructed on Parcel G which restricts access to public utility easements and that the surface improvement on Spartan Lane going west through Parcel G will be maintained by Lessee. SECTION IV. A. ITEM 1. OF THE LEASE IS HEREBY AMENDED TO READ AS FOLLOWS: 1. Parcel A, B, C, F and G. Annual rent shall be a sum equal to $0.17 per square foot of the land area contained in the Leased Premises (the "Original Rent"). Monthly rental shall be 1/12 1h of the annual rent. However, beginning March 1, 2011 the Original Rent will be adjusted in accordance with Section IV.C. SECTION IV. C., FIRST PARAGRAPH, OF THE LEASE IS HEREBY AMENDED TO READ AS FOLLOWS: C. PAYMENT, PENALTY, ADJUSTMENTS. All payments due Lessor from Lessee under this Lease Agreement shall be made to Lessor at the offices of the Finance Department of the City of Denton, Customer Service Division, 601 West Hickory, Denton, Texas, unless otherwise designated in writing by the Lessor. If payments are not received on or before the 15th day of the month, a five percent (5%) penalty will be due as of the 16th. If payments are not received by the first of the subsequent month, an additional penalty of one percent (1%) of the unpaid rental/fee amount will be due. A one percent (1%) charge will be added on the first of each subsequent month until the unpaid rental/fee payment is made. The Original Rent for the Leased Premises shall be readjusted at the end of each one year period during the Lease 2 Term 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 Bureau of Labor Statistics bears to the previous odd month 2008 index (November), which was 200.051 (1982-84 = 100). Each rental adjustment, if any, shall occur on the 1st day of February, beginning 2011, and every second year thereafter on such date. SECTION V. C. 11. OF THE LEASE IS HEREBY AMENDED TO READ AS FOLLOWS: 11. Indemnity. Lessee must indemnify, hold harmless and defend the Lessor, its officers, agents and employees, from and against liability for any and all claims, liens, suits, demands and/or actions for damages, injuries to persons (including death), property damage, (including loss of use), and expenses, including court costs, attorneys' fees and other reasonable costs, occasioned by or incidental to the Lessee's occupancy or use of the Leased Premises or the Airport and/or activities conducted in connection with or incidental to this Lease Agreement, including all such causes of action based on common, constitutional or statutory law, or based in whole or in part upon the negligent or intentional acts or omissions of Lessee, its officers, agents employees, invitees or other persons. Lessee must at all times exercise reasonable precautions on behalf, of, and be solely responsible for, the safety of its officers, employees, agents, customers, visitors, invitees, licensees and other persons, as well as their property, while in, on, or involved in any way with the use of the Leased Premises. The Lessor is not liable or responsible for the negligence or intentional acts or omissions of the Lessee, its officers, agents, employees, agents, customers, visitors and other persons. The Lessor shall assume no responsibility or liability for harm, injury, or any damaging events which are directly or indirectly attributable to premise defects, whether real or alleged, which may now exist or which may hereafter arise upon the Leased Premises, responsibility for all such defects being expressly assumed by the Lessee. The Lessee agrees that this indemnity provision applies to all claims, suits, demands, and actions arising from all premise defects or conditions. THE LESSOR AND THE LESSEE EXPRESSLY INTEND THIS INDEMNITY PROVISION TO REQUIRE LESSEE TO INDEMNIFY AND PROTECT THE LESSOR FROM THE CONSEQUENCES OF THE LESSOR'S OWN NEGLIGENCE WHILE LESSOR IS PARTICIPATING IN THIS LEASE 3 AGREEMENT WHERE THAT NEGLIGENCE IS A CONCURRING CAUSE OF THE INJURY, DEATH, OR DAMAGE. NOTWITHSTANDING THE TERMS OF THE PRECEDING SENTENCES, THIS INDEMNITY PROVISION DOES NOT APPLY TO ANY CLAIM, LOSS, DAMAGE, CAUSE OF ACTION, SUIT AND LIABILITY WHERE THE INJURY, DEATH, OR DAMAGE RESULTS FROM THE SOLE NEGLIGENCE OF THE LESSOR OR ANY OF ITS EMPLOYEES, CONTRACTORS, OR AGENTS, UNMIXED WITH THE FAULT OF ANY OTHER PERSON OR ENTITY. ALL OTHER PROVISIONS OF THE-LEASE AGREEMENT REMAIN IN FULL FORCE AND EFFECT. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year above first written. BY LESSOR: GEO GE C. CAMPBELL CITY MANAGER ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: q , APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: 4 BY LESSEE: ~ l a S' S-VAUGHAN INVESTMENTS STATE OF TEXAS COUNTY OF DENTON This instrument was acknowledged before me on the day of ,Q 20 dq , by Sykes-Vaughan Investments. [SEAL] JM ANN MULL1lAt8 Not ry Public, State of Texas MY M Commission Ex ires J..17 i 3 Nq 27, IM3 Y p (or Notary Stamp) STATE OF TEXAS COUNTY OF DENTON This instrument was acknowledged before me on the day of 200 by George Campbell, City Manager on behalf the City of Denton, Texas, a municipal corporation. ,n rIFER K. WALTERS I~o ary Pub C. State of Texas Al =a Public, state of Texas My Commission Expires 1VI~ Commission Expires C/ /G December 19, 2010 (or Notary Stamp) 5