2008-081s:\our documents\ordinances\08\jet works air center 3rd amendment ord.doc
ORDINANCE NO. BOOS` OIL
AN ORDINANCE AUTHORIZING THE CITY MANAGER TO APPROVE A THIRD
AMENDMENT TO A COMMERICAL AIRPORT OPERATORS LEASE AGREEMENT
APPROVED BY ORDINANCE 2004-362 DATED DECEMBER 1, 2004, BETWEEN THE
CITY OF DENTON, TEXAS AND JET WORKS AVIATION, INC. ON APPROXIMATELY
1.912 ACRES OF LAND AT THE DENTON MUNCIPAL AIRPORT; AND PROVIDING AN
EFFECTIVE DATE.
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The City Manager or his designee is hereby authorized to execute a Third
Amendment to a Commercial Operator Airport Lease a;;reement between the City of Denton and
Jet Works Air Center Management, L.L.C. on approximately 1.912 acres of land at the Denton
Municipal Airport, in substantially the form of the 'Third Amendment to the 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 ~J~fh _ day of _ ~~' 2008.
~~~
PER . McNEILL, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM:
EDWIN M. SNYDER, CITY ATTORNEY
BY:~~~i/~
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s:Wur documents\wnVacts\08\jet works air center 3rd amendment mar 2008.doc
THIRD AMENDMENT TO THE
AIRPORT LEASE AGREEMENT
WITH JET WORKS AIR CENTER MANAGMENT, LLC
STATE OF TEXAS §
§ KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF DENTON §
This Third Amendment is made executed to be effective as of the 1~ ~~day of April,
2008 to that certain Airport Lease Agreement between the City of Denton, Texas, a municipal
corporation, hereinafter referred to as "Lessor" and JET WORKS .AIR CENTER
MANAGEMENT, LLC, a Texas limited liability company, hereinafter referred to as "Lessee"
which was executed to be effective as of the First day of December, 2004, and subsequently
amended on the 21St day of June, 2005 and again on the 16a' day of August, 2005 hereinafter
referred to as "Base Lease".
WITNESSETH:
WHEREAS, the Lessor and Lessee wish to amend the Base Lease to add approximately
2.339 acres to the Base Lease and 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. Section II. A., D., E., F. "Leased Premises", Section IV. A and C
"Payments, Rentals and Fees," Section VII "Special Conditions" and Section VIII "Leasehold
Improvements" aze hereby amended so as to add the following thereto:
II. LEASED PREMISES
Lessor, for and in consideration of the covenants and agreements herein contained, to be
kept by Lessee, and subject to the conditions contained herein, does hereby demise and lease
unto Lessee, and Lessee does hereby lease from Lessor; for the lease term described in Article
III, the following described land situated in the City of Denton, Denton County, Texas:
A. LAND. A tract of land, being approximately 101,907 square feet drawn and outlined
and described on Exhibits "A and B" such exhibits being incorporated herein by reference (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
A description of expanded lease azea, Pazcel 2, is attached to this Amendment as Exhibit
"B". A legal description providing the metes and bounds of the leased property will be attached
to this Third Amendment as Exhibit "A."
D. IMPROVEMENTS PROVIDED BY LESSEE.
3. Construction of Pazcel 2 Improvements. On Pazcel 2, Lessee shall construct a
commercial hangaz/office facility. of not less than 40,000 squaze feet with a minimum door
height of 28 feet and a minimum door width of 100 feet, and an additional private aircraft apron
of approximately 20,000 ("Parcel 2 Improvements"). Construction of Pazcel 2 improvements
sha1L be commenced no later than 270 days after the Effective Date of this Amendment and
completed no later than 720 days after the Effective Date (the "Construction Period").
Construction of Pazcel 2 Improvements aze considered complete upon the issuance of a
certificate of occupancy for the entire hangar/office facility.
E. EASEMENTS. Lessee is awaze of an existing storm sewer located east of the
existing hangaz on Pazcel 1 and n,nning through the proposed development site and agrees to an
easement for said infrastructure should the storm sewer need to be relocated as part of the
development proposal.
F. ACCESS TO UTILITIES. Lessor represents that there are water, sewer, natural gas
and electricity lines situated upon the Airport within 200 feet of Parcel 2. Lessee shall be
responsible for extending said lines to the Leased Premises at Lessee's sole expense.
N. PAYMENTS. RENTALS AND FEES
A. LAND RENTAL. Land rental shall be due and payable to Lessor in the sum of $0.25
per squaze foot or approximately $25,476.75 per yeaz. Rental shall be due and payable to Lessor
in twelve (12) equal monthly installments in the sum of approximately $2,123.06 per month in
advance, on or before the 1st day of each and every month during the term of this Lease
Agreement. Lessee has the option to pay annual rentals and fees in whole on or before the 1st
day of October, at the beginning of the City's fiscal year, each and every yeaz of this Lease
Agreement.
C. PAYMENT, PENALTY, ADJUSTMENTS. Pazcel 2 shall enjoy the same terms for
rental adjustments as Pazcel 1 however, each rental adjustment, if any, on Pazcel shall occur on
the ls` day of October, beginning 2010, and every other yeaz thereafter.
VII. SPECIAL CONDITIONS
RUNWAYS AND TAXIWAYS. Because of the present one-hundred thousand (100,000)
pound continuous use weight bearing capacity of the Denton Airport primary taxiway and runway
system ,Lessee herein agrees to limit all aeronautical activity including landirig, take-off and
taxiing, to aircraft having an actual weight, including the weight of its fuel, ofone-hundred thousand
(100,000) 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 any 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 violating the provisions pf this section on two or more occasions shall be
sufficient to cause the immediate termination of this entire Lease Agreement and subject Lessee to
liability for any damages to the Airport that might result.
VII. LEASEHOLD IMPROVEMENTS
C. LAND RENTAL. Lessee may begin clearing and grading activities with written
approval from the Airport Manager. Lessor shall not be financially liable for any costs should
the Federal Aviatior Administration or Texas Department of Transportation (Aviation) not
approve the FAA Form 7460 and related development documentation.
SECTION 2. 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 Third 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: ~
GEO GEC. CAMPBELL, ITY MANAGER
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
APPROVED AS TO LEGAL FORM:
EDWIN M. SNYDER, CITY ATTORNEY
e,
JET WORKS AIR CENTER MANAGEMNT, LLC,
a Texas limited liability company
BY:
WA
ACKNOWLEDGMENTS
THE STATE OF TEXAS
COUNTY OF DENTON
This instrument was acknowledged before me on the ~J_~day of 2008, by
George C. Campbell, City Manager of the City of Denton, Texas, on behalf o said municipality.
'~~~%:~, JANE E. RICHARDSON
^` Notary Public, State of Tezas
~~~ My Commission Expires
"'%".;°al';.~•" June 27, 2009
~.1~rt'. ~'. ,L~,LI' ~l CI~L/ 9.1rdC~
N ARY PUBLIC, STATE OF TEXAS
THE STATE OF TEXAS §
COUNTY OF DENTON §
This instrLUnent was acknowledged before me on the ~ day of _ L 1~ ~ 2008 by
Wayne Cecil, Chief Executive Officer, Jet Works Air Center Management, LC, a Texas limited
liability company, on behalf of said company.
.: •..,,:
.~ "•. JULIE ANN MULLINS
° Notary Public, State of Tezas
ti: +~! My Commission Expires
„„„dr May 27, 2009
~~ l~~rl L~uGGG~
N ARY PUBLIC, STATE OF TEXAS
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