2009-197FILE REFERENCE FORM 2009-197
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Assi nment of Ground Lease - Ordinance No. 2016-050 02/16/16 JR
sAour documents\ordinances\09\airport mahon assignment of lease.doc
ORDINANCE NO. OO9 I /
AN ORDINANCE APPROVING AN ASSIGNMENT OF A LEASEHOLD INTEREST IN AN
AIRPORT LEASE AGREEMENT AT DENTON MUNICIPAL AIRPORT FROM MARY
MAHON, TO HAROLD E. AND KATHY J. CULP LOCATED AT 904 AERONCA DRIVE,
DENTON, TEXAS AT THE DENTON MUNICIPAL AIRPORT AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, Mary Mahon has requested that her Airport Lease Agreement at 904
Aeronca Drive dated January 10, 1989 be assigned to Harold E. and Kathy J Culp; and
WHEREAS, the Airport Board has approved the Assignment and Lease Amendment; and
WHEREAS, the City Council deems it in the public interest to approve this Assignment;
NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The City Manager, or his designee is hereby authorized to execute an
Assignment of a leasehold interest in an Airport Lease Agreement, attached as Exhibit A and
made a part hereof, at the Denton Municipal Airport from Mary Mahon to Harold E. and Kathy
J. Culp in substantially the form of the Assignment attached as Exhibit B to and made a part of
this Ordinance for all purposes, to evidence the City's consent to the Assignment.
SECTION 2. This Ordinance shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the
day of 2009.
MARK A. B S, MAYOR
sAour documents\ordinances\09\airport mahon assignment of lease.doc
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
APPROVED AS TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
BY: z e,
Page 2 of 2
AIRPORT LEASE BETWEEN THE
CITY OF DENTON AND BERT E. MAHON AND MARY L. MAHON
This agreemen herein er referred to as "Lease" is made and
executed this day of t j, 1989, at Denton, Texas,
by and between the CITY OF NTON, municipal corporation of the
State of Texas, hereinafte referr d to as "Lessor", and BERT E.
MAHON AND MARY L. MAHON, husband and wife, having their residence
at 1803 Concord Lane, Denton, Texas, hereinafter referred to as
"Lessee".
WITNESSETH:
WHEREAS, Lessor now owns, controls and operates the Denton
Municipal Airport ("Airport") in the City of Denton, County of
Denton, State of Texas; and
WHEREAS, Lessee desires to lease land on the Airport and
construct and maintain an aircraft storage hangar and associated
facilities thereon;
NOW, THEREFORE, in consideration of the premises and the
mutual covenants contained in this Lease, the parties agree as
follows:
I. CONDITIONS OF LEASE
NOTWITHSTANDING ANY LANGUAGE TO THE CONTRARY HEREINAFTER CONTAINED,
THE LANGUAGE IN PARAGRAPHS A THROUGH B OF THIS SECTION SHALL BE
BINDING.
A. Non-Discrimination. The Lessee, for itself, its personal
representatives, successors in interest, and assigns, as a part of
the consideration hereof, does hereby covenant and agree as a
covenant running with the land that:
(1) In the construction of any improvements on, over, or
under such land and the furnishing 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.
(2) The Lessee, shall use the Premises incompliance with all
requirements imposed by or pursuant to Title 49, Code of
Federal Regulations, Department of Transportation,
Subtitle A, Office of the Secretary, Part 21, Non-
discrimination in Federally Assisted Programs of the
MAHON LEASE/Page 1
EXHIBIT A
Department of Transportation-Effectual of Title VI of the
Civil Rights Act of 1964, and as said Regulations may be
amended.
In the event of breach of any of the above non-discriminatory
covenants, Lessor shall have the right to terminate the Lease and
to reenter and repossess said land and the facilities thereon, and
hold the same as if said Lease had never been made or issued. This
provision does not become effective until the procedures of 49 CFR
Part 21, as amended, are followed and completed, including the
expiration of appeal rights.
B. 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 view of the Lessee, and
without interference or hindrance-."
(2) Lessor reserves unto itself, its successors and assigns,
for the use and benefit of the flying public, a right of
flight for the passage of aircraft above the surface of
the Premises described herein, together with the right
to cause in said airspace such noise as may be inherent
in the operation of aircraft now known or hereafter used,
for navigation of or flight in the said airspace, and for
use of said airspace for landing on, taking off from, or
operating on the Airport.
(3) Lessor shall be obligated to maintain and keep in repair
the landing area of the Airport and shall have the right
to direct and control all activities of Lessee in this
regard.
(4) 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.
(5) . Lessor reserves the right to take any action it considers
necessary to protect the aerial approaches of the Airport
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 the Lessor, would limit the
usefulness or safety of the Airport or constitute a
hazard to aircraft or to aircraft navigation.
MAHON LEASE/Page 2
t
(6) 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 consideration of the covenants and
agreements herein contained to be kept by Lessee, does lease to
Lessee, and Lessee does hereby lease from Lessor- the tract of land
as shown in Attachment "A", attached hereto and incorporated herein
by reference, described as follows:
All that certain tract or parcel of land situated in the
Thomas Toby Survey, Abstract Number 1285, Denton County,
Texas, and being part of a tract shown by deed to City
of Denton, recorded in Volume 304, Page 503, Deed Records
of Denton County, Texas, and being more particularly
described as follows:
BEGINNING at a set half-inch rebar at a point north 134
391 31" east 229.68 feet from a concrete monument marked
DTO-B-1979;
THENCE north 14 33' 09" east a distance of 180.0 feet to
a point for corner;
THENCE south 884 14' 51 east a distance of 110.74 feet
to a point for corner;
THENCE south 214 45' 54" east a distance of 195.52 feet
to a set half-inch rebar for corner;
THENCE north 884 33' 54" west a distance of 188.24 feet
to the Point of Beginning and containing 0.6171 acres of
land (or 26,881.03 square feet).
For the purposes of this Lease, the term "Premises" shall mean
the property located within the land described above.
III. TERM
The term of this Lease shall be for a period of twenty-five
(25) years, commencing on 15th day of January, 1989, and
continuing through the 14th day of January, 2014, unless earlier
terminated under the provisions of this Lease. Lessee shall have
the right and option to extend the term of this Lease for two
additional five (5) year terms after the expiration of the initial
twenty-five (25) year term. Should Lessee desire to exercise
MAHON LEASE/Page 3
either such option, Lessee shall give
Lessor at least one hundred eighty
expiration of the initial term or first
of this Lease, whichever the case may
fails to give written notice within the
to extend shall automatically terminal
timely exercises the option to extend, t]
for an additional five-year term upon th4
provided for in this Lease.
written notice thereof to
(180) days prior to the
additional five-year term
be. In the event Lessee
required time, the option
:e. In the event Lessee
its Lease shall be extended
same terms and conditions
IV. RENTALS AND PAYMENTS
Lessee covenants and agrees to pay to Lessor, as consideration
for this Lease, payments and rentals as follows:
A. First Year Rent. Lessee shall pay to the Lessor rent for
the use and occupancy of the Premises for the first year of this
Lease, on or before JYanuary`1T5,'1989;` the sum of eight cents (84~.)
per square foot per year, for a total of Two Thousand One Hundred
Fifty Dollars and Forty-eight Cents ($2,150.48).
B. Annual Rental Adlustments. For subsequent years the yearly
rental shall be based on the All Urban Consumer Price Index (CPI-U)
'
for the Dallas/Fort Worth, Texas, Standard Metropolitan Statistical
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Area, as compiled by the._U-. S,..., Department of Labore Bureau of Labor
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each year subsequent to the initial 'year of this Lease, including
any year in any additional term provided for in this Lease, shall
be computed by dividing the sum of $2,150.48, the amount of.rent
for the initial year of the Lease, by the index number for January
1989,1 the first month of the initial year of the Lease, then
multiplying that amount by the index number for the month of
October in the year immediately preceding the initial month of the
subsequent year of the Lease. Lessor shall notify Lessee of the
rental amount to be paid for each subsequent year of the Lease at
least thr_,tydays prior to the beginning of each subsequent
t_~.
.
year. The annual rental so calculated for each subsequent year
shall be paid annually as provided herein.
C. Payment and Penalty. All payments made hereunder by Lessee
shall be made to Lessor at the offices of the Finance Department
of- the Lessor of Denton, Accounts Receivable, 215 E. McKinney,
Denton, Texas 76201, unless Lessee is notified to the contrary in
writing by Lessor. All yearly rental payments shall be due and
payable in advance on or before January 15 of each year and shall
be paid by Lessee without demand or notice from Lessor. All rental
amounts paid by Lessee after the twenty-fifth (25) day of January
in the year due will be delinquent and shall include an additional
monetary amount (penalty) which shall equal five percent (5%) of
the annual rental amount due. Failure of Lessee to pay the five
MAHON LEASE/Page 4
percent (5%) monetary penalty on delinquent rent shall constitute
an event of default of this Lease.
V. RIGHTS AND OBLIGATIONS OF LESSEE
A..Use of Premises. Lessee is granted the right to use the
Premises for the storage, maintenance, fueling and repair of
aircraft owned and operated by the Lessee and Lessee's family or
.invitees. Lessee may not use any portion of the Premises for any
use not authorized by this Lease, including any industrial,
commercial or retail business or any other business operations
which furnish or provide any product or service to the general
public or other lessees of Airport property. No permanent dwelling
or domicile may be built, moved to or established on or within the
Premises nor may the Lessee, its tenants, invitees, or guests be
permitted to reside or remain as a- resident on or within the
Premises or other Airport Premises.
B. General Access to Premises. Subject to the reasonable
rules, regulations, or directives of Lessor, Lessee shall, in
common with others so authorized, have the nonexclusive right and
privilege over and through the Airport property.and the right of
ingress to and egress from the Premises for its employees, agents,
guests, and invitees, suppliers of materials and furnishers of
services.
C. Standards. During the Lease term, Lessee shall comply with
the following requirements and standards:
(1) Address. Lessee shall file with the Airport Manager and
keep current its mailing address, telephone number(s) and
contacts where its authorized official can be reached in
an emergency.
(2) List of Tenants. Lessee shall file with the Airport
Manager and keep current a list of any tenants or
sublessee authorized by this Lease and shall
contractually require its tenants and sublessee to abide
by the terms of this Lease. Lessee shall promptly
enforce its contractual rights in the event of a default
of such covenants.
(3)- Utilities. Taxes And Fees. - Lessee shall meet all
expenses and payments in connection with the use and
occupancy of the Premises and the rights and privileges
herein granted, including the timely payments of
utilities, taxes, permit fees, license fees and
assessments lawfully levied or assessed. Lessee herein
agrees to timely pay to all lawful taxing. authorities an
ad valorem property tax on all improvements constructed
MAHON LEASE/Page 5
by the Lessee on the Premises, and to comply with all tax
laws pertaining to the Premises, including those
promulgated in the future.
(4) Rules, Reg]glations and Restrictions. Lessee shall comply
with all laws, codes, ordinances, rules, and regulations,
either existing or those promulgated in the future, by
the Lessor, the County of Denton, the State of Texas, the
United States of America, and the Federal Aviation
Administration, or their successors applicable to the
Premises or use thereof. Lessee's use of the Premises
shall at all times be in compliance with and subject to
any covenants, restrictions, and conditions of record
pertaining to the use and occupancy of the Premises.
Lessee shall not operate or permit the operation of any
transmitter devices, electrical signal producers, or
machinery on the Premises which could interfere with the
electronic aircraft navigation aids or devices located
on or off Airport property. Lessee shall not be
permitted to engage in any business or operation on the
Premises which would produce obstructions to visibility
or violate height restrictions as set forth by the
Federal Aviation Administration or the Lessor.
(5) Height Restriction And Airspace Protection. The Lessee
agrees for itself, its successors, and assigns to
restrict the height of structures, objects of natural
growth and other obstructions on the Premises to a height
as established in City of Denton Ordinance 81-1, as the
same may be amended from time-to-time. The Lessee also
agrees for itself, its successors, and assigns to prevent
any use of the Premises which would -interfere with
landing or taking off of aircraft at the Airport, or
otherwise constitute an airport hazard. Lessee hereby
forfeits all claims to aviation rights over the Premises.
(6) Maintenance. Lessee shall be responsible for all
maintenance and repair of the Premises, including
buildings, structures, grounds, pavements, and utilities.
Lessee shall be responsible for grass cutting, collection
and removal of trash and for such other maintenance
requirements as may arise. Lessee agrees to keep the
Premises, together with all improvements, in a safe,
clean and attractive condition at all times. Lessee
shall not change the original color or'texture of the
exterior walls of any structures or improvements without
the written consent from Lessor.
(a) Painting of Buildings. During the original term of
this Lease and during each extension, Lessor shall
MAHON LEASE/Page 6
have the right to require, not more than once every
five years, that the exterior of each hangar or
building located on the Premises be reviewed by the
Airport.Board for the purpose of determining whether
painting of the exteriors of such buildings or
hangars is necessary. If the Airport Board
determines painting is necessary, it shall furnish
a recommendation to this effect to the City Council.
The Council, may, upon the Board's recommendation,
require Lessee to repaint said exteriors according
to Lessor's specifications (to specify color of
paint, quality of paint, number of applications,
quality of workmanship and the year and month in
which each hangar or building.is to be painted, if
needed). Lessee shall complete the painting in
accordance with such specifications within six (6)
months of receipt of notice from Lessor. Lessee
agrees to pay all costs of the required painting.
Failure of Lessee to complete the painting required
by Lessor's City Council within the six (6) month
period shall constitute Lessee's default under this
Lease.
(b) Storage. Lessee shall not utilize or permit others
to utilize areas on the Premises which are located
on the outside of any hangar or building for the
storage of wrecked or permanently disabled aircraft,
aircraft parts, automobiles, vehicles of any type,
or any other equipment or items which would distract
from the appearance of the Premises.
(7) Quit Possession. Lessee shall quit possession of the
Premises 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.
(8) Chemicals. Lessee shall properly store, collect and
dispose of all chemicals and chemical residues; properly
store, confine, collect and dispose of all paint,
including paint spray in the atmosphere, and paint
products; and comply with all local, state and federal
laws and regulations governing the storage, handling or
disposal of chemicals and paints. Lessee shall not
utilized, store, dispose, or transport any material,
fluids, solids or gaseous substances on the Premises
which are considered by the Environmental Protection
Agency to be a hazard to the health of the general public
and undertake any activity on the Premises that would
produce noxious odors.
MAHON LEASE/Page 7
lf. % .
(9) Signs. Lessee shall have the right, at its own expense,
to place in or on the Premises signs identifying Lessee.
The 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 on the Airport. The signs
shall be maintained in repair. Notwithstanding any other
provision of this Lease, the signs shall remain the
property 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 Lease or
extensions thereof.
(10) Use of 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 shall 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 a
greater weight. Based on qualified engineering studies,
the weight restrictions and provisions may be adjusted
up or down by Lessor and 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, its agents,
subcontractors, and invitees. Should Lessee negligently
disregard the provisions of this section, Lessor may
immediately terminate this Lease. Lessee agrees to pay
to Lessor upon demand for any damage, as determined by
Lessor, to Airport property that results from a violation
of this section.
(11) Parking. The parking of motor vehicles on Airport
property by Lessee, Lessee's guests or invitees, shall
be subject to any regulations, restrictions or-directions
imposed by Lessor.
C. Connection to Utilities. Lessee may connect to any
existing-water mains serving the Premises, in accordance with and
upon payment of any tap or connection fees, as specified by
Lessor's ordinances applicable to utility customers, provided,.
however, Lessee shall not be liable to Lessor for any water pro
rata payments as a result of the connections made.
D. Abatement of Violations.
rule, restriction or regulation
Federal Aviation Administration,
Should Lessee violate any law,
of the Lessor of Denton or the
or should the Lessee engage in or
MAHON LEASE/Page 8
permit other persons or agents to engage in activities which could
produce hazards or obstruction to air navigation, obstructions to
visibility or interference with any aircraft navigational aid
station or device, either 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 Premises, or to the person on
the Premises who are causing said violation, and upon delivery of
such written notice, Lessor shall have the right to demand that the
person responsible -for the violation cease and desist from all such
activity creating the violation. In such event, Lessor shall have
the right to demand that corrective action, as required, be
commenced immediately to restore the Premises into conformance with
the particular law, rule or aeronautical regulation being violated.
Should Lessee, Lessee's agent, or the person responsible for the
violation fail to cease and desist from said violation and to
immediately commence correcting the violation, and to complete said
corrections within twenty-four (24) hours following written
notification, then Lessor shall have the right to.enter on to the
Premises and correct the violation, and Lessor -shall not be
responsible for any damages incurred to any improvements on the
Premises as a result of the corrective action process. Lessor
shall submit an invoice to Lessee for the cost of the repairs and
Lessee shall pay said invoice within thirty (30) days.
E. Recording of Lease. Within thirty (30) days after the
date of execution of this Lease, Lessee shall at its-own expense
record a copy of this Lease in the Real Property Records of Denton
County, Texas, a copy of which recorded lease shall be provided to
Lessor.
VI. RIGHTS AND OBLIGATIONS OF LESSOR
A. Vehicular Access Road. Within ninety _(90) days of the
effective date of this Lease, Lessor shall construct, at Lessor's
cost, a vehicular access road from the existing road to the
boundary of the Premises, in the approximate location as shown in
Attachment "A". The road shall be of a minimum width of twenty
(20) feet and shall be of tar and chip gravel, or other appropriate
materials determined by Lessor. Lessor shall be responsible for
the maintenance of the road during the Lease term.
B. Peaceful Enjoyment. That on payment of rent, fees, and
performance of the covenants and agreements on the part of Lessee
to be performed hereunder, Lessee shall peaceably hold and enjoy
the Premises and all rights and privileges herein granted.
C. Compliance. Lessor warrants and represents that in the
establishment, construction and operation of the Airport, that
Lessor has heretofore and at this time is complying with all
existing rules, regulations, and criteria 'distributed by the
MAHON LEASE/Page 9
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 over adjoining
property in the course of normal takeoff and landing procedures
from the Airport. Lessor further warrants and represents that at
all times during the term hereof, or any renewal or extension of
same, that it will continue to comply with the foregoing.
C. Easements. Lessor shall have the right to establish
easements, at no cost to Lessee, upon the Premises for the purpose
of providing utility services to, from, or across the Airport
property or for the. construction of public facilities on the
Airport. However, any such easements shall not interfere with
Lessee's use of the Premises and Lessor shall restore the property
to its original condition upon the installation of any utility
services on, in, over or under any such easement at the conclusion
of such construction. Lessee shall not have the right to levy
fees, charges, or receive any compensation for any exercised right
of easement by Lessor or Lessor's authorized agent.
VII. LEASEHOLD AND OTHER IMPROVEMENTS
A. Improvements by Lessee. Lessee may construct upon the
Premises, at its own cost and expense, an aircraft storage hanger
with attached aircraft maintenance and repair shop, office and
pilot's lounge area, bathroom facilities, a covered open-air
pavilion and other buildings, hangars, structures, and leasehold
improvements that Lessor and Lessee mutually agree are necessary
for the use of the Premises authorized by this Lease.
B. Reauired Plat and Building Plans. Lessee shall, prior to
constructing any improvements on the Premises, submit to the Lessor
for its approval, a plat of the property and the detailed
construction and building plans and specifications for the proposed
improvements. The required plat and plans shall be submitted in
the form and manner specified by Lessor's ordinances and Lessee
shall, at the time of submission pay all processing, permit, and
approval fees applicable thereto, as specified by Lessor's
ordinances.. The plat submitted shall conform to regulation and
requirements of Lessor's Subdivision and Land Development
Regulations. Any building, hanger, or other improvement plans and
specifications submitted for initial construction, or any
additional improvements to be made thereafter, shall conform to the
following requirements:
(1) Buildings, hangers, or structures shall conform with and
be compatible with the overall size, shape, color,
MAHON LEASE/Page.10
quality, design, appearance, and general plan of the
program established by the Lessor's Master Plan for the
Airport, as approved by the City Council, copies which
are on file at the Office of the Airport Manager and the
City Secretary.
(2) The regulations and requirements of the Lessor's
Building, Fire, Electrical, Plumbing,. and other
applicable Codes and ordinances of Lessor applicable to
the improvements to be made.
(3) All buildings, including hangers, shall be designed and
constructed so as to have an anticipated life of at
least thirty-five (35) years.
(4) Any rules or regulations of the any Federal or State
agency having jurisdiction thereof.
(5) Contain the estimated cost of the construction of the
improvements to be made.
C. Approval of Plans. Within sixty (60) days of proper
submission of the plat and plans, and payment of the applicable
fees, Lessor shall approve or disapprove the plat and plans.
Should Lessor fail to approve or disapprove of the required plat
or plans within the sixty (60) days, the plat and plans shall be
deemed approved. Should the Lessor timely disapprove the plat or
plans, it shall give notice to the Lessee of the reason for the
disapproval. No construction of any improvements shall begin
until and unless the plans and specifications are approved by
Lessor.
D. Airplane Taxiway Access.
(1) Taxiway Improvements by Lessee. The Lessee acknowledges
that on the effective date of this Lease, there are no
existing taxiway improvements to serve the Premises and
that Lessee shall be responsible, at no cost to Lessor,
of providing any necessary taxiway improvements which are
necessary to serve the Premises. The area designated as
"taxiway" on attachment "A" shall be the general area
used, as more specifically designated by Lessor prior to
the beginning of construction, to provide for taxiway
access to serve the Premises. Prior to beginning the
taxiway improvements, the plans therefore shall be
submitted and approved in accordance with the provisions
for other leasehold improvements.
(2) Use and Maintenance of Taxiway - Provided by Lessee.
Lessee shall be solely responsible for the maintenance
of the taxiway access provided, and shall keep the
MAHON LEASE/Page 11
taxiway in good condition, free of obstructions and
defects. The use of the taxiway access shall be subject
to the reasonable rules, regulations, or directives of
Lessor.
E. Ownership of Improvements. All buildings and improvements
constructed upon the Premises by Lessee shall remain the property
of Lessee throughout the term of the Lease, except as otherwise
provided in this Lease. All buildings and improvements of whatever
nature remaining upon the 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.
F. Removal of Hangars or Buildings. In the event that Lessee
should remove. any building or hangar from the Premises, where such
removal is authorized by this Lease, Lessee herein agrees to comply-
with the following terms:
(1) Prior to commencing the hangar or building removal
process, the Lessee and Lessor shall agree on the best
method to remove the building,' including where to cut
water lines, electrical wire, plumbing and other fixtures
or utilities, so as to cut said fixtures to allow the
future use of these fixtures.
(2) The buildings shall be
surface of the concrete
of cut utility lines.
removed including sinks,
other items or fixtures
slab from being as
obstructions.
removed completely from the
slab and up, with the exception
All interior fixtures shall be
commodes, dividing walls and all
that would prevent the concrete
free as possible from all
(3) Removal of hangars or buildings shall begin and be
completed prior to Lessee's designated termination date.
(4) All hangar and building slabs, aircraft parking aprons,
taxiways, and all other similar improvements on the
Premises shall remain on the Premises and shall become
the property of the Lessor without costs to Lessor.
(5) - Lessee shall be responsible for the removal of all refuse
and debris from the Premises prior to vacating the
Premises.
(6) Lessee shall be responsible for all costs involved in the
removal of the hangar or building, including costs of
permits or fees.
(7) Lessee shall be responsible for any damage caused to any
MAHON LEASE/Page 12
l
improvements on the Premises during the building or
hangar removal process, and Lessee herein agrees to
repair or replace, at Lessee's expense, any improvements
damaged by Lessee during the removal of said structures.
VIII. SUBROGATION OF MORTGAGEE
Lessee shall have the right to place a first mortgage lien
upon its leasehold in an amount not to exceed eighty percent (80%)
of the cost of the capital improvements. The terms and conditions
of such mortgage loan shall be subject to the approval of Lessor
and Lessee shall submit copies of the loan documents, including the
loan application, to Lessor. Lender's duties and rights are as
follows:
1. The Lender shall have the right, in case of default, to
assume the rights and obligations of Lessee herein and
become a .substituted Lessee, with the further right to
assign the Lessee's interest to a third party, subject
to approval of Lessor. Lender's obligations under this
Lease as substituted Lessee shall cease upon assignment
to a third party as approval by Lessor.
2. As a condition precedent to the exercise of the right
granted to Lender by this paragraph, Lender shall notify
Lessor of all action taken by it in the event payments
on such loans shall become delinquent. Lender shall also
notify Lessor, in writing, on any change.in the identity
or address of the Lender.
3. All notices required by the Lease to be given by Lessor
to Lessee shall also be given by Lessor to Lender at the
same time and in the same manner provided Lessor has been
furnished with written notice of Lender's interest and
its address. Such notice shall be given to the City
Secretary and the Airport Manager. Upon receipt of such
notice, Lender shall have the same rights as Lessee to
correct any default.
IX. INSURANCE
A. Lessee shall maintain continuously in effect at all times
during the term of this Lease or any extension thereof, at Lessee's
expense, comprehensive general liability insurance covering the
Premises, the Lessee, its personnel and its operations on the
Airport, for bodily injury and property damage in the minimum
amount of $250,000, combined single limits on a per occurrence
basis.
B. All policies shall be issued by a company authorized to
MAHON LEASE/Page 13
do business in the State of Texas, be approved by the Lessor,
copies of which shall be provided to Lessor. The policies shall
name the Lessor as an additional named insured and shall provide
for a minimum of thirty (30) days written notice to the Lessor
prior to the effective date of any cancellation or lapse of such
policies.
C. During the original or extended term of this Lease, Lessor
herein reserves the right 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 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 Airport in size and in scope of
aviation activities, located in the southwestern region of the
United States. For the purpose of this Lease, the Southwestern
region of the United States shall be the states classified as the
Southwestern region by the Federal Aviation Administration.
D. 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 insurance and monetary amounts or limits of insurance, and
to comply with said insurance requirements within sixty (60) days
following receipt of a notice in writing from Lessor stating the
increased or adjusted insurance requirements. Lessee shall have
the right to maintain in force types of insurance and amounts of
insurance which exceed Lessor's minimum insurance requirements.
E. In the event that State law should be amended to require
types of insurance 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 or the amount of insurance as specified by State Law.
X. INDEMNITY
A. Lessee agrees to indemnify, defend, and hold harmless
Lessor and its agents, employees, and representatives from and
against all liability for any and all claims, suits, demands, or
actions arising from or based upon intentional or negligent acts
or omissions on the part of Lessee, its agents, representatives,
employees, members, patrons, visitors, contractors and
subcontractors, or sublessees, if any, which may arise out of or
result from Lessee's occupancy or use of the Premises or activities
conducted in connection with or incidental to this Lease.
MAHON LEASE/Page 14
B. This Indemnity Provision extends to any and all such
claims, suits, demands, or actions regardless of the type of relief
sought thereby, and whether such relief is in the form of damages,
judgments, and costs and reasonable attorney's fees and expenses,
or any other legal or equitable form of remedy. This Indemnity
Provision shall apply regardless of the nature of the injury or
harm alleged, whether for injury or death to persons or damage to
property, and whether such claims be-alleged at common law, or
statutory, or constitutional claims, or otherwise. This Indemnity
Provision shall apply whether the basis for the claim, suit,
demand, or action may be attributable in whole or in part to the
Lessee, or to any of its agents, representatives, employees,
members, patrons, visitors, contractors, and subcontractors, or
sublessees, if any, or to anyone directly or indirectly employed
by any of them.
C. This Indemnity Provision also extends to any claim or
liability for harm, injury, or any damaging events which are
directly or indirectly attributable to premise defects or
conditions which may now exist or.which may hereafter arise upon
the Premises, any and all such defects being expressly waived by
Lessee. Lessee understands and agrees that this Indemnity
Provision shall apply to any and all claims, suits, demands, or
actions based upon or arising from any such claim asserted by or
on behalf of Lessee or any of its members, patrons, visitors,
agents, employees, contractors and subcontractors, or sublessees,
if any.
D. It is expressly understood and agreed that the Lessor
shall not be liable or responsible for the negligence of Lessee,
its agents, servants, employees or sublessees, if any. Lessee
further agrees that it shall at all times exercise reasonable
precautions for the safety of, and shall be solely responsible for
the safety of its agents, representatives, employees, members,
patrons, visitors, contractors and subcontractors, sublessees, if
any, and other persons, as well as for the protection of supplies
and equipment and the property of Lessee or other persons.
E. Lessee and Lessor each agree to give the other party prompt
and timely notice of any such claim made or suit instituted which
in any way, directly or indirectly, contingently or otherwise,
affects or might affect the Lessee or the Lessor. Lessee further
agrees that this Indemnity Provision shall be considered as an
additional remedy to Lessor and not an exclusive remedy.
XI. CANCELLATION BY LESSOR
All the terms, restrictions, covenants, and conditions
pertaining to the use and occupancy of the Premises are conditions
of this Lease and the failure of the Lessee to comply with any of
MAHON LEASE/Page 15
the terms, conditions, restrictions, covenants, and conditions
shall be considered a default of this Lease, and upon default, the
Lessor shall have the right to invoke any one or all of the
following remedies.
A. Should Lessee fail to pay the annual rental amounts or fees
prescribed in this Lease, such failure shall constitute a default
of this Lease, and Lessor may give written notice to Lessee of
Lessee's failure to pay and demand payment in accordance with the
Lease terms. Should Lessee fail to pay the annual rental amount
within twenty (20) days following receipt of written notice from
Lessor, then Lessor may terminate this Lease.
B. In the event that Lessee fails to comply with any other
terms, conditions, restrictions and covenants pertaining to this
Lease, Lessor shall give Lessee notice of said breach, and request
Lessee to cure or correct the same. Should Lessee fail to correct
said violation(s) or breach within thirty (30) days following
receipt of said notice, then Lessor shall have the right to
terminate this Lease. Should this Lease be terminated by. Lessor
for failure of Lessee to correct said breach or violation within
the thirty (30) day cure time, Lessee shall forfeit all rights to
all improvements on the Premises and all improvements on the
Premises shall become the property of the Lessor.
C. In addition to termination of this Lease for the breach of
terms and conditions herein, the Lessor shall have the right to
terminate this Lease for the following reasons:
(1) In the event that Lessee shall file a voluntary petition
in bankruptcy or proceedings in bankruptcy shall be
instituted against Lessee 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 if a receiver shall
take jurisdiction of Lessee and its assets pursuant to
proceedings brought under the provisions of any federal
reorganization act; or if a receiver for Lessee's assets
is appointed.
(2) In the event that Lessee should make an assignment of
this Lease, for any reason, without the approval of and
written consent from Lessor.
D. Upon termination or cancellation of this Lease and provided
all monies due Lessor have been paid, Lessee shall have the right
to remove its personal property, provided such removal does not
cause damage to any part of the hangar, structure or improvements.
Lessee shall remove all personal property from the Premises within
ten (10) days after the termination. If Lessee fails to remove
MAHON LEASE/Page 16
its personal property as agreed, Lessor may elect to retain
possession of such property or may sell the same and keep the
proceeds, or may have such property removed at the expense of
Lessee.
Where, upon termination of the Lease, the fixed improvements
become the property of Lessor as provided herein, Lessee shall
repair, at its own expense, any damage to the fixed improvements,
resulting from the removal of personal property and shall leave
the Premises in a neat and clean condition with all other
improvements in place.
E. Failure of Lessor to declare this Lease terminated upon the
default of Lessee for any of the reasons set out shall not operate
to bar, destroy, or waive the right of Lessor to cancel this Lease
by reason of any subsequent violation of the terms hereof. The
acceptance of rentals and fees by Lessor for any period or periods
after a default of any -of the terms, covenants, and conditions
herein contained to be performed, kept, and observed by Lessee
shall not be deemed a waiver of any rights on the part of the
Lessor to cancel this Lease for failure by Lessee to so perform,
keep or observe any of the terms, covenants or conditions hereof
to be performed, kept and observed.
XII. CANCELLATION BY LESSEE
Lessee may cancel this Lease, in whole or part, and terminate
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 preventing or
restraining the use of said Airport or any part thereof for Airport
purposes; (2) the breach by Lessor of any of the covenants or
agreements 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 the Premises and facilities continuing for a
longer period than ninety (90) days due to any law or any order,
rule, or regulation 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 Premises for the maintenance and operation of said Airport
and facilities or any substantial part or parts thereof.
Upon the happening of any. of the four events listed in the
preceding paragraph,. such that the Premises cannot be used for
authorized purposes, then Lessee may cancel this Lease or may elect
to continue this Lease under its terms.
In the event that Lessee should elect to cancel this Lease as
MAHON LEASE/Page 17
provided herein, Lessor shall have the right to purchase the
improvements at a value determined by having such improvements
appraised by three appraisers, one appointed by Lessor, one
appointed by Lessee, and one appointed by the two appraisers. The
costs of the appraisal shall be paid by Lessor. Within sixty (60)
days of the delivery of a written appraisal report by the
appraisers to Lessor, Lessor shall notify Lessee in writing of its
decision to purchase all or part of the hangers or buildings. If
Lessor exercises its right to purchase, it shall make payment to
Lessee of the appraised value of the buildings or hangers to be
purchased within thirty (30) days of the written notice.
XIII. MISCELLANEOUS PROVISIONS
A. Entire Agreement. This Lease 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. Subletting or Assignment. The Lessee shall not rent, or
sublease the Premises, or any portion thereof, or assign this
Lease, without prior written consent of the Lessor. If approved
by Lessor, any tenant, sublessee, or assignee shall be subject to
the same conditions, obligations and terms as set forth herein.
C. Lease Binding on Successors and Assigns. All covenants,
agreements, provisions and conditions of this Lease shall be
binding upon and inure to the benefit of the respective parties
hereto and their legal representatives, successors or assigns. No
modification of this Lease shall be binding upon either party
unless written and signed by both parties.
D. Effect of Condemnation. If the whole or any part of the
Premises shall be condemned or taken by eminent domain proceedings
by any city, county, state, federal or other authority for any
purpose, then the term of this Lease shall cease on the part so
taken from the day the possession of that part shall be required
for any purpose and the rent shall be paid up to that day, and from
that day Lessee shall have the right to continue in the possession
of the remainder of the Premises under the terms herein provided,
except that the rent shall be adjusted to such amount as the
parties hereto shall negotiate; but, under no circumstances shall
the rent be greater than the rental per square foot provided for
herein. All damages awarded for such taking of and for any public
purpose shall belong to and be the property of Lessor. All damages
awarded for such taking of structures, improvements or businesses
that were constructed by Lessee shall be reflective of their value
for the remainder of the Lease term and be awarded to Lessee, the
remainder to be awarded to Lessor.
MAHON LEASE/Page 18
E. Severability. If any provision hereof shall be finally
declared void or illegal by any court or administrative agency
having jurisdiction, the entire Lease 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.
F. Notice. Any notice given by one party to the other in
connection with this Lease 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 Denton
215 E. McKinney
Denton, Texas 76201
2. If to Lessee, addressed to:
Bert E. Mahon
1803 Concord Lane
Denton, Texas 76205
Notices shall be deemed to have been received on the date of
receipt as shown on the return receipt.
G. Headings. The headings used in this Lease are intended
for convenience of reference only and do not define or limit the
scope or meaning of any provision of this Lease.
H. Governing Law. This Lease is to be construed in accordance
with the laws of the State of Texas.
IN WITNESS WHEREOF, the parties have executed this Lease as
of the day and year first above written.
CITY OF D TON, TEXAS, LESSOR
BY . -
LLOYD HARRELL, CITY MANAGER
A ST:
J IFER PALTERS, CITY SECRETARY
MAHON LEASE/Page 19
APPROVED AS TO LEGAL FORM:
DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY
BY:
LESSEE
Bert E. Mahon
Mary L. ahon
STATE OF TEXAS
COUNTY OF DENTON
his instrument was acknowledged before me on the - day
of , 1989, by Lloyd V. Harrell, City Manager
oft City of6 enton, Texas, a municipal corporation of the State
of Texas, on behalf of said co oration.
'A ""'4cr't-
1FAWM Mff N ry Public, State of Texas
Guy ~C 3W dTau My Commission expires :
emmkike Do= aft 31, low
STATE OF TEXAS
COUNTY OF DENTON
This instrument was acknowledged before me on the day
of ! -ZE , 1989, by Bert E. Mahon. y
61
Nota `Public, State o Te as_
My Co ission expires:
STATE OF TEXAS
COUNTY OF DENTON
(This instrument was acknowledged before me on the /0 day
of 1989.1 by Mary L. Mahon.
Notary ~ublic, State of xas
My Commission expires :
MAHON LEASE/Page 20
ATTACHMENT "A"
i.
SCALE 1 = 200
W~
- J~
1
.QOM
LEASE ASSIGNMENT OF
COMMERCIAL OPERATORS LEASE AT
DENTON MUNICIPAL AIRPORT
DATE: July 21, 2009
ASSIGNOR: Mary Mahon
ASSIGNEE: Harold E. and Kathy J. Culp
LEASE: Date: January 10, 1989
Landlord: City of Denton, Texas
Tenant: Mary Mahon
Premises: Thomas Toby Survey, Abstract number 1285, Tract 7, Denton
County. The physical address is 904 Aeronca Drive, Denton,
Texas 76207 and more fully described in the Attachment A and B
which is made a 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
Assignment becoming effective.
Landlord consents to this assignment. Landlord agrees to notify Assignor within
30 days of any Assignee default.
B. Assignor agrees as a condition of Landlord's consent to this Assignment that:
1. Assignor will remain liable on the Lease should Assignee default on the
Lease.
2. Assignor will pay or will have the Assignee pay the Landlord a $500
transfer fee.
3. Assignor will pay or will have the Assignee pay all the Landlord's
administrative costs of handling and processing this assignment, including
without limitation, all Landlord's reasonable attorneys fees and Landlord's
staff time associated with this assignment.
PREVIOUS ASSIGNMENTS: None
For Mary Mahon, Assignor
- ~~-Ze
EXHIBIT B
For Harold'E. and Kathy J. Culp, Assignee
-,,-L k . ~
Harold E. Culp
~l
Kathy J. Culp
City of Denton, Landlord
George C. Campbell, City Manager
Attest:
Jennifer.Walters, City Secretary
8y:
Approved as to Legal Form:
Anita Burgess, City Attomey
By:
STATE OF TEXAS
COUNTY OF DENTON
This instrument. -was acknowledged before me on the day of
20_efl, by Mary Mahon, airport lessee.
AMN E. MARTIN
[SEAL] *W1 MY COMMISSION EXPIRES
September 8, 2012
Notary Public, State of Texas
My Commission Expires 6L
(or Notary Stamp) .
Page 2of3
STATE OF TEXAS
COUNTY OF DENTON
This instrument was acknowledged
and Kathy J. C41p.
20.~, by Harold E 4~
before me on the day of
[SEAL]
P` EMILY L. SCHENCK
MY COMMISSION EXPIRES
June 29, 2011
E~
STATE OF TEXAS
COUNTY OF .DENTON
Notary Public, State of Texas
My Commission Expires j~
(or Notary Stamp)
This instrument was acknowledged before me on the day of jtl - A'0~'.- - X 94-2-1
200° , by George C. Campbell on behalf the City of Denton, Texas, a municipa corporation.
JENNIFER K. WALTER.
Notary Public, State of Texas
My Commission Expires
''•';;o;;;~' December 19, 2010
ary Pu lic, State of Texas
My Co ssion Expires
(or Notary Stamp)
Page 3 of 3