2009-240k\codad\departments\legal\our documents\ordinances\09\airport ntdenton leasing termination.doc
ORDINANCE NO. 20J9
AN ORDINANCE OF THE CITY OF DENTON, TEXAS TERMINATING THAT CERTAIN
AIRPORT LEASE DATED JUNE 215 2005 BY AND BETWEEN THE CITY OF DENTON,
TEXAS AND NTDENTON LEASING, INC.; AUTHORIZING THE CITY ATTORNEY OR
HER DESIGNEE TO TAKE APPROPRIATE LEGAL ACTION TO EFFECTUATE THE
TERMINATION; AND, PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Denton, Texas (the "City") and NTDenton Leasing, Inc.
(NTDenton Leasing) entered into that certain Airport Operator Lease Agreement dated June 21,
2005 (the "Lease Agreement") whereby the City leased to NTDenton Leasing for aviation
purposes an approximately 150 feet by 170 feet or 0.5854 acres of land more particularly
described in the Lease Agreement which is incorporated herein by reference (the "Leased
Property"); and
WHEREAS, pursuant to the Lease Agreement, NTDenton Leasing has the duty and
obligation to construct a hangar facility of not less than 10,000 square feet with taxiway access
and appropriate culverts or drainage ("Lessee's Improvements") to be completed not more than
720 days from June 21, 2005, the effective date of the Lease Agreement; and
WHEREAS, NTDenton Leasing's obligation to complete the Lessee's Improvements
within this time period is a material obligation of NTDenton Leasing under the Lease
Agreement; and
WHEREAS, on or about July 1, 2009, the City gave NTDenton Leasing notice
("Notice") that 720 days had elapsed without the required Lessee's Improvements being
completed, a copy of which is attached hereto as Exhibit "A" and incorporated herein by
reference; and
WHEREAS, despite the July 1, 2009 Notice, NTDenton Leasing failed or refused to
complete the Lessee's Improvements within the required time; and
WHEREAS, the July 1, 2009 Notice informs NTDenton Leasing that failure to complete
the Lessee's Improvements within the required construction period will result in the termination
and cancellation of the Lease Agreement upon 30 days written notice of cancellation to
NTDenton Leasing; and
WHEREAS, to date, which is over 30 days since the Notice was received by NTDenton
Leasing and NTDenton Leasing has failed to complete the construction of the Lessee's
Improvements for the Leased Property; and
\\codad\departments\legal\our documents\ordinances\09\airport ntdenton leasing termination.doc
WHEREAS, the City Council finds that terminating and cancelling the Lease Agreement
in accordance with the Airport Advisory Board's recommendation would be in the public
interest; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The findings and recitations contained in the preamble of this ordinance
are incorporated herein by reference.
SECTION 2. The City Council hereby terminates and cancels the Lease Agreement due
to nonperformance of a material obligation of NTDenton Leasing under the Lease Agreement.
The said termination is effective upon 30 days written notice of termination and cancellation to
Lessee. The City Manager or his designee is hereby authorized and directed to give notice of
this termination and cancellation to NTDenton Leasing. Should legal action be required to
effectuate the termination and cancellation of the Lease Agreement and/or if it should become
necessary to file legal action to remove NTDenton Leasing from the Leased Property or to
determine the rights and obligations of the parties under the Lease Agreement, the City Attorney,
or her designee, is hereby authorized to file such legal actions on behalf of the City.
SECTION 3. This ordinance shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the day of , 2009.
)R
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY: A W
APPROVED AS TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
BY:
a,
EXHIBIT A
Denton Airport
The North Texas Airport of Choice
5000 AIRPORT RD -DENTON, TEXAS 76207 -(940) 349-7736 -FAX (940) 349-7289
DENTON MUNICIPAL AIRPORT
June 26, 2009
Charles Jones
NTDenton Leasing, Inc.
6901 Redbud Drive
Flower Mound, Texas 75022
Re: Lease Termination Notice: CERTIFIED LETTER NUMBER: 7005 3110 0003 0516 1988
RETURN RECEIPT REQUESTED
Dear Mr. Jones,
This letter will confirm that your Commercial Airport Operator Lease Agreement between NTDenton
Leasing, Inc. and the City of Denton dated June 21, 2005 for the property identified as 4600 Spartan
Drive is terminated effective thirty days following receipt of this notice. This action is in conformance
with the provision in Section II, D of said lease which states in part:
Notwithstanding anything contained in this Lease Agreement to the contrary, a failure to
commence the Lessee's Improvements within the Commencement Period or to complete the
Lessee's Improvements within the Construction period may, at the sole option and discretion of
the Lessor, result in the immediate termination and cancellation of this Lease Agreement upon 30
days written notice of cancellation to Lessee. In such case Lessee's rights under the Lease
Agreement will immediately cease and be forfeited, and all of Lessee's Improvements shall
immediately become the property of Lessor at no cost, expense or other compensation paid by
Lessor to Lessee; and Lessee shall immediately vacate the Leased Premises.
You may contact the Denton Airport Manager if you need additional information regarding this lease
termination- notice:
"Dedicated to Quality Service"
www.cityofdenton.com
Lease Termination Notice
June 30, 2009
Page 2
Cc: Mark Nelson, Director of Transportation
George Campbell, City Manager
Anita Burgess, City Attorney
Andrea Sumner, Airport Operations Coordinator