2006-153
2006-153
FILE REFERENCE FORM
FILE(S) Date Initials
First Amendment to Lease Agreement [original is attached] 11/30/06 )R
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s:\Our Docl,lments\Ordinances\06\Airport Leasc-Montgomcry.doc
ORDINANCE NO. 20{)h - 1'i3
AN ORDINANCE APPROVING A COMMERCIAL OPERATOR AIRPORT LEASE
AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND HANGARS PLUS L.L.C.
ON APPROXIMATELY 4,200 SQUARE FEET OF LAND AT THE DENTON MUNICIPAL
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
Commercial Operator Airport Lease Agreement between the City of Denton and Hangars Plus
L.L.C. on approximately 4,200 square feet of land at the Denton Municipal Airport, in
substantially the form of 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.
tJt!i
vtU1/ --
& (lw,fJ1J
P~. MC~I~ttrtYOR
PASSED AND APPROVED this the
day of
,2006.
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
APPRO ED AS 0 LEGAL FORM:
EDWIN M. SNYDER, CITY ATTORNEY
BY: r;kJe;fj(J~'
S:\Our Documents\Contracts\06\Montgomery Airport Lease 053006.doc
AIRPORT LEASE AGREEMENT
COMMERCIAL OPERATOR
This L ase Agreement is made and executed to be effective as of the tP t/!: day
of . , 2006 (the "Effective Date") at Denton, Texas, by and
between City of Denton, Texas, a municipal corporation, hereinafter referred to as
"Lessor", and Hangars Plus L.L.c., hereinafter referred to as "Lessee".
WITNESSETH:
WHEREAS, Lessor now owns, controls and operates the Denton Municipal Airport
(the "Airport") in the City of Denton, County of Denton, State of Texas; and
WHEREAS, Lessee desires to lease certain premises at the Airport and construct and
maintain an aircraft hangar and related aviation facilities thereon;
NOW, THEREFORE, for and in consideration of the promises and the mutual
covenants contained in this Agreement, the parties agree as follows:
1. r:ONOTTTONS OF T FASF AGREEMFNT
NOTWITHSTANDING ANY LANGUAGE TO THE CONTRARY HEREINAFTER
CONTAINED, THE LANGUAGE IN PARAGRAPHS A THROUGH D OF TillS
SECTION SHALL BE BINDING.
A. PRTNr:TPT ES OF OPER A TTONS. The right to conduct aeronautical and related
activities for furnishing services to the public is granted to Lessee subject to Lessee
agreemg:
1. To furnish said services on a fair, equal and not unjustly discriminatory basis
to all users thereof; and
2. To charge fair, reasonable and not unjustly discriminatory prices for each unit
or service; provided, that Le.ssee may be allowed to make reasonable and
nondiscriminatory discounts, rebates, or other similar types of price reductions
to volume purchasers.
B. NON-DTSr:RTMTNATTON: Lessee, for itself, its personal representatives,
successors, and assigns, as a part of the consideration hereof, does hereby
covenant and agree as a covenant running with the land that:
1. No person on the grounds of race, religion, color, sex, or national origin shall
be excluded from participation in, denied the benefits of, or be otherwise
subjected to discrimination in the use of said facilities;
2. 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;
3. Lessee shall use the premises in compliance with all other requirements
imposed by or pursuant to Title 49, Code of Federal Regulations, Department
of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimi-
nation in Federally assisted programs of the Department of Transportation _
Effectual of Title VI of the Civil Rights Act of 1964, as said Regulations may
be amended.
C. RTGHT OF TNDTVmTTAT S TO MAINTATN ATRr:RAFT It is clearly
understood by Lessee that no right or privilege has been granted which would operate to
prevent any person, firm or corporation operating aircraft on the Airport from performing
any services on its own aircraft with its own regular employees (including, but not limited
to, maintenance and repair) that it may choose to perform.
D. NON-EXr:T TTSTVE RIGHT. It is understood and agreed that nothing herein
contained shall be construed to grant or authorize the granting of an exclusive right within
the meaning of Title 49 U.S.C. Appendix 91349.
E. PTffiT T(; ARFAS.
I. Lessor reserves the right to further develop or improve the landing area of the
Airport as it sees fit, regardless of the desires or views of Lessee, and without
interference or hindrance.
2. Lessor shall be obligated to maintain and keep in good repair the landing area
of the Airport and all publicly owned facilities of the Airport, together with the
right to direct and control all activities of Lessee in this regard.
3. 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.
4. 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 Lessor, would
limit the usefulness or safety of the Airport or constitute a hazard to aircraft or
to aircraft navigation. The hangar/office/shop complex as currently proposed
as provided in Section II.D. does not violate this provision.
5. This Lease Agreement shall be subordinate to the provisions of any existing or
Page 2
future agreement between Lessor and the United States or agency thereof,
relative to the operation or maintenance of the Airport.
II. T FASFD PRFMTSFS
Lessor, for and in consideration of the covenants and agreements herein contained, to
be kept by Lessee, 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 Denton County, Texas:
A. T A NO. A tract ofland, being approximately 70 feet by 60 feet or 4,200 square feet,
drawn and outlined on Attachment "A", and legally described in Attachment "B" as such
attachments 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 mean all property located witlrin the metes and bounds described
and identified within Attachment "B", including leasehold improvements constructed by the
Lessee, but not including certain easements or property owned and/or controlled by the
Lessor.
B. TMPROVFMFNTS PROVmFD BY TFSSOR: NONE:
improvements provided by Lessor, except as set forth in Article II.F.
below.
There will be no
"Access to Utilities"
The term "Lessor improvements" shall mean those things on or adjacent to the
Leased Premises belonging to, constructed by, or to be constructed by the Lessor. Unless
otherwise noted herein, all Lessor improvements are and will remain the property of Lessor.
All Lessor improvements must be described in detail above, or above referenced and
attached to this Agreement in an exhibit approved by Lessor.
Co, TMPROVFMFNTS PROVmFD BY T FSSFF The Lessee shall design,
construct and maintain all drainage improvements to the Leased Premises and construct and
maintain all apron approaches both to the north and south and provide a parking area on the
Leased Premises. The Lessor will be responsible for keeping the drainage pipes cleared out
and Lessee shall be responsible for improvements to the Leased Premises in compliance
with Chapter 35, Subchapter 19 (Drainage Standards) City of Denton Code of Ordinances
Denton Development Code, latest edition, and the latest City of Denton Drainage Criteria
Manual (February 20, 2002). Lessee shall provide complete construction plans prepared by
an Engineer licensed in Texas for the Lessor's review and approval in accordance with
Lessor's Planning Department procedures and requirements for similar private development
projects within the City. Lessee shall prepare plans following the guidelines in the latest
edition of the City of Denton Construction Criteria Manual and shall not commence
construction until Lessor approves Lessee's construction plans. Lessee shall enter into a
Page 3
Development Contract with Lessor and pay Lessor for all inspection services for grading
and drainage improvements for the property.
(All above described improvements to be constructed by Lessee are called the
"Lessee's Improvements"). The Lessee shall submit a full drainage plan drawn up by
Lessee's engineer as referenced above no later than 45 days from the date of execution (the
effective date) of this Lease Agreement. Construction of Lessee's Improvements shall be
commenced no later than 270 days (the "Commencement Period") and completed no later
than 720 days after the Effective Date (the "Construction Period"). Construction of
Lessee's Improvements is considered commenced upon issuance of a building permit and
construction of any portion of the proposed improvements. Construction of Lessee's
Improvements is considered complete upon the issuance of a Certificate of Occupancy for
the entire hangar, drainage and utility improvements. In addition, as a condition precedent to
the effectiveness of this Lease Agreement, within 60 days after the Effective Date of this
Lease Agreement, Lessee shall provide to Lessor (i) a written estimate of the cost to
construct Lessee's Improvements prepared by a contractor who has demonstrated
experience in the successful construction of improvements similar to Lessee's
Improvements (the "Construction Cost Estimate"), (ii) a written schedule of construction to
complete Lessee's Improvements, and (iii) a written loan commitment from a lending
institution providing for sufficient funding to cover the Construction Cost Estimate (called
"Conditions Precedent"). Should the Conditions Precedent not be met either party may
terminate this Lease Agreement by giving the other party written notice, in which case this
Lease Agreement shall be null and void and of no further force and effect. Such termination
shall not prevent the Lessee from submitting a new proposed lease request at a later date.
The parties may extend the 60-day time period if in writing signed by both parties. Lessee
is not entitled to take possession of the Leased Premises under this Lease Agreement until
the Conditions Precedent have been fulfilled.
Notwithstanding anything contained in this Lease Agreement to the contrary, a
failure to deliver a full drainage plan as referenced above within 45 days from the date
of execution of this Lease Agreement, 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 and in the case of the
failure to submit a drainage plan in the 45 days period, the Lease shall automatically
terminate without notice and Lessee shall immediately remove itself from the
premises. 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.
E. EASEMENTS. Lessor and Lessee by mutual agreement may establish, on the
Leased Premises, easements for public access on roads and taxiways.
Page 4
F. ArTFSS TO TJTTf TTTFS Lessor represents that there are water, sewer, natural
gas and electricity lines within close proximity to the Leased Premises available to "tap-in"
by Lessee, and that the same are sufficient for usual and customary service on the Leased
Premises.
III. TFRM
The term of this Lease Agreement shall be for a period of thirty (30) years, com-
mencing on the 15th day of June, 2006 and continuing through the 14th day of June of
2036, unless earlier terminated under the provisions of the Lease Agreement (the "Lease
Term"). Lessee has the option to renew for two (2) additional ten (10) year terms. In order
to exercise the first option Lessee must provide written notice to Lessor of its intent to
exercise the first 10 year option no later than 180 days before the expiration of the 30 year
primary term. To exercise the second option such written notice must be provided no later
than 180 days before the expiration of the first 10 year option term. The rental and terms to
be negotiated for the option terms shall be reasonable and consistent with the then value,
rentals and terms of similar property on the Airport.
IV. PAYMFNTS RFNTATS ANnFFFS
Lessee covenants and agrees to pay Lessor, as consideration for this Lease Agreement,
the following payments, rentals and fees:
A. T ANnA Nn RFNT A T Rental shall be due and payable to Lessor in the sum
of $0.12 per square foot or $504.00 per year (the "Original Rent"), the first years rental is
payable in advance by Lessee on or before the execution of this Lease Agreement and is
non-refundable in the event the Lease is terminated before the end of the first year.
Thereafter rent is payable in twelve (12) equal monthly installments in the sum of $42.00
per month ($42.00) 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
year of this Lease Agreement.
Notwithstanding the foregoing, the annual rental will be reduced by the current lease rate
per square foot, as adjusted by the CPI-U referenced in Section IV.C., times the number of
square feet comprising all easements established in accordance with Article II (E).
B. T.FSSOR TMPROVFMFNTS RFNTAT S. NONE:
improvements on the Leased Premises.
There are no Lessor
C. PAYMFNT PFNATTY, AT)rrrSTMFNTS. All payments due Lessor from Lessee
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. Ifpayments are not received
by the first of the subsequent month, an additional penalty of one percent (I %) of the unpaid
Page 5
rentaVfee amount will be due. A one percent (I %) 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
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 2006 index (March), which was 1 RR 4 (1982-84 = 100).
Each rental adjustment, if any, shall occur on the 1st day of November, beginning in 2008,
and every other year thereafter on such date.
The adjustments in the yearly rent shall be determined by multiplying the Original
Rent by a fraction, the numerator of which is the index number for the last month prior to
the adjustment, and the denominator of which is the index number applicable at the
execution of this Lease Agreement. If the product of this multiplication is greater than
the Original Rent, Lessee shall pay this greater amount as the yearly rent until the time of
the next rental adjustment as called for in this section. If the product of this multiplication
is less than the Original Rent there shall be no adjustment in the annual rent at that time,
and Lessee shall pay the previous year's annual rent until the time of the next rental
adjustment as called for in this section. In no event shall any rental adjustment called for
in this section result in an annual rent less than the previous year's annual rent. The
adjustment shall be limited so that the annual rental payment determined for any given
two-year period shall not exceed the annual rental payment calculated for the previous
CPI adjustment by more than twenty percent (20%) percent.
If the consumer price index for all urban consumers (CPI-U) for the Dallas-Fort
Worth geographical region, as compiled by the U.S. Department of Labor, Bureau of Labor
Statistics, is discontinued during the Lease Term, the remaining rental adjustments called
for in this section shall be made using the formula set forth above, but by substituting the
index numbers for the Consumer Price Index-Seasonally Adjusted U.S. City Average For
All Items For All Urban Consumers (CPI-U) for the index numbers for the CPI-U
applicable to the Dallas-Fort Worth geographical region. If both the CPI-U for the Dallas-
Fort Worth geographical region and the U.S. City Average are discontinued during the
Lease Term, the remaining rental adjustments called for in this section shall be made using
the statistics of the Bureau of Labor Statistics of the United States Department of Labor that
are most nearly comparable to the CPI-U applicable to the Dallas-Fort Worth geographical
region. If the Bureau of Labor Statistics of the United States Department of Labor ceases to
exist or ceases to publish statistics concerning the purchasing power of the consumer dollar
during the Lease Term, the remaining rental adjustments called for in this section shall be
made using the most nearly comparable statistics published by a recognized financial
authority selected by Lessor.
V. RTGHTS ANn OR! TGATTONS OF T FSSFF
A. TTSF OF T l' ASFD PRFMTSFS. Lessee is granted the non-exclusive privilege to
engage in owner/operator activities providing the following aviation services:
I. H"ng"r "nn Officp. Sp"CP. T p'",ing. Lessee is granted the non-exclusive right to
Page 6
rent hangar and office space.
Lessee, its tenants, employees, invitees and guests shall not be authorized to conduct
any services not specifically listed in this Lease Agreement. The use of the Leased Prernises
by Lessee, its tenants, employees, invitees or guests shall be limited to only those private,
commercial, retail or industrial activities having to do with or related to airports and avia-
tion. Except as specifically authorized in this Lease Agreement, no person, business or
corporation may operate a commercial, retail or industrial business upon the Leased
Premises or upon the Airport without a lease or license from Lessor authorizing such
commercial, retail or industrial activity. The Lessor shall not unreasonably withhold
authorization to conduct aeronautical or related services.
B. ST A NnA RDS Lessee shall meet or exceed the following standards:
1. Annre" Lessee shall file with the Airport Manager and keep current its
mailing addresses, telephone numbers and contacts where it can be reached in
an emergency.
2. List. Lessee shall file with the Airport Manager and keep current a list of its
tenants and subleases, to include a list of aircraft and the aircraft's
corresponding aircraft identification number.
3. (;onnllct. Lessee shall contractually require its employees and sublessees (and
sublessee's invitees) to abide by the terms of this Lease Agreement. Lessee
shall promptly enforce its contractual rights in the event of a default of such
covenants.
4. T Ttilitie, T"xe, "lIn Fee, Lessee shall meet all expenses and payments in
connection with the use of the Leased Premises and the rights and privileges
herein granted, including the timely payment of utilities, taxes, permit fees,
license fees and assessments lawfully levied or assessed.
5. 1.=. Lessee shall comply with all current and future federal, state and local
laws, rules and regulations which may apply to the conduct of business
contemplated, including rules, regulations and ordinances promulgated by
Lessor, and Lessee shall keep in effect and post in a prominent place all
necessary and/or required licenses or permits.
6. M "inten"nce of Property. Lessee shall be responsible for the maintenance,
repair and upkeep of all property, buildings, structures and improvements,
including the mowing or elimination of grass and other vegetation on the .
Leased Premises, and shall keep the Leased Premises neat, clean and in
respectable condition, free from any objectional matter or thing, including
trash or debris. Lessee agrees not to utilize or permit others to utilize areas on
the Leased Premises which are located on the outside of any hangar or
Page 7
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 leased premises. Lessee
agrees that at no time shall the Leased Premises be used for a flea market type
sales operation.
7. P"inting of RlIilnings During the Lease Term of this Lease Agreement and
during each extension, Lessor shall have the right to require, not more than
once every five years, that the metal exterior of hangar(s) or building(s)
located on the Leased Premises be repainted. The Lessor may require Lessee
to repaint said exteriors according to Lessor's specifications (to specifY color
of paint, quality of workmanship and the year and month in which the
hangar(s) or building(s) are to be painted, if needed.) Lessee shall complete
the painting in accordance with such specifications within one (1) year of
receipt of notice from Lessor. Lessee agrees to pay all costs and expense
involved in the hangar or building painting process. Failure of Lessee to
complete the painting required by Lessor, within the one (1) year period shall
constitute Lessee's default under this Lease Agreement.
8. TTn""thori7"n 11<" of T "".,,n Pr"mi.".. Lessee may not use any of the Leased
Premises for any use not authorized herein unless Lessor gives Lessee prior
written approval of such additional use. Without limiting the foregoing the
Leased Premises shall not be used for the operation of a motel, hotel,
restaurant, private club or bar, apartment house, storage of recreational
vehicles, automobiles, or marine vehicles, or for industrial, commercial, retail,
or other purposes, except as authorized herein.
9. Dw"l1ing.. It is expressly understood and agreed that no dwelling or domicile
may be built, moved to or established on or within the Leased Premises nor
may lessee, its tenants, employees, invitees, or guests be permitted to reside or
remain as a resident on or within the Leased Premises or other Airport
premises. Lessee may have a pilot lounge, including restroom and shower
facilities for use by flight crew and passengers.
10. QlIit Po.."..ion. Lessee shall quit possession of the Leased Premises at the
end of the Lease Term or any renewal or extension thereof, or upon
cancellation or termination of the Lease Agreement, and deliver up the Lease
Premises to Lessor in as good condition as existed when possession was taken
by Lessee, reasonable wear and tear excepted.
II. Tnn"mnity. 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
Page 8
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.
THR T .RSSOR ANn THR T RSSRR RXPRRSST Y TNTRNn TffiS
TNnRMNTTVPROVTSTON TO RFQTTTRR T FSSRR TO TNnFMNTFY
ANn PROTF~T THR T FSSOR FROM THR ~ONSRQTJRN~RS OF THF
T.FSSOR'S OWN NRGTTGRN~R WHTT F T FSSOR TS PARTTrTPATTNG
TN TffiS T RASR AGRFRMRNT WHRRF THAT NRGTTGRN~R TS A
~ONnTRRTNG ~ATJSR OF THF TNTTTRY DRATH OR DAMAGR
NOTWTTHSTANnTNG THF TFRMS OF THF PRR~RDTNG
SRNTFN~RS TffiS TNnFMNTTY PROVTSTON DOFS NOT APPT Y TO
ANY ~T AIM TOSS DAMAGR ~ATJSF OF A~TTON STTTT ANn
T TARTT TTY WHRRR THF TNTTTRY DRATH OR DAMAGR RRSTTTTS
FROM THR SnIR NFGT.TGFN~F OF THR TFSSOR OR ANY OF TTS
FMPT OYFFS ~ONTRA~TORS OR AGRNTS TTNMTXFD WITH THF
FATTTT OF ANY OTHFR PFRSON OR RNTTTY
12. ~hemi,,"ls Lessee agrees to properly store, collect and dispose of all chemicals
and chemical residues; to properly store, confine, collect and dispose of all
paint, including paint spray in the atmosphere, and paint products; and to
comply with all Local, State and Federal regulations governing the storage,
handling or disposal of such chemicals and paints. Further, the Lessee shall be
solely responsible for all discharges, whether accidental or intentional, of any
chemical and for the costs associated with the cleanup, remediation and
disposal of said chemicals.
13. H"7"rnOllS A"tivities. Should Lessee violate any law, rule, restnctJon or
regulation of the City of Denton or the Federal Aviation Administration, or any
other regulatory authority, or should the Lessee engage in or permit other
persons or agents to engage in activities which could produce hazards or
Page 9
obstruction to air navigation, obstructions to visibility or interference with any
aircraft navigational aid station or device, whether 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 Leased Premises, or to the person(s) on the
Leased Premises who are causing said violation(s), and upon delivery of such
written notice, Lessor shall have the right to demand that the person(s)
responsible for the violation( s) cease and desist from all such activity creating
the violation(s). In such event, Lessor shall have the right to demand that
corrective action, as required, be commenced immediately to restore the Leased
Premises into conformance with the particular law, rule or aeronautical
regulation being violated. Should Lessee, Lessee's agent, or the person(s)
responsible for the violation(s) fail to cease and desist from said violation(s)
and to inunediately commence correcting the violation(s), and to complete said
corrections within twenty-four (24) hours following written notification, then
Lessor shall have the right to enter onto the Leased Prernises and correct the
violation(s) at the sole cost and expense of Lessee, and Lessor shall not be
responsible for any damages incurred to any improvements on the Leased
Premises as a result of the corrective action process. In addition, such violation
shall be considered a material default by Lessee authorizing Lessor, at its sole
option and discretion, to immediately terminate and cancel this Lease
Agreement.
C. STGNS. No signs, posters, or other sirnilar devices ("Signage") shall be
placed on the exterior of the Lease Improvements or on any portion of the Leased Premises
or Airport property without the prior written approval of Lessor. Lessee, at its sole expense,
shall be responsible for the creation, installation and maintenance of all such Signage.
Lessee shall pay to Lessor any and all damages, injuries, or repairs resulting from the
installation, maintenance or repair of any such Signage. Any Signage placed on the Leased
Premises shall be maintained at all times in a safe, neat, sightly and good physical condition.
All signage shall be removed from the Leased Premises by Lessee inunediately upon
receipt of instructions for removal of same from Lessor, including without limitation, upon
expiration or termination of this Lease Agreement. If Lessee fails to remove the Signage
then Lessor may do so at the sole cost and expense of Lessee. Lessee shall be permitted the
right to place two wall signs, no greater than thirty-two square feet each, identifYing the
commercial hangar operation. All signage shall comply with all applicable ordinances
including the City of Denton sign ordinance."
D. RNTRY Lessor and its designees shall have the right to enter the Leased
Premises upon reasonable advance notice (written or oral) and at any reasonable times for
the purposes of inspecting the Leased Premises, performing any work which Lessor elects
to perform under this Lease Agreement, and exhibiting the Leased Premises for sale,
lease, or mortgage. Nothing in this section shall imply any duty upon Lessor to do any
work, which under any other provision of this Lease Agreement Lessee is required to
perform, and any performance by Lessor shall not constitute a waiver of Lessee's default.
Page 10
VI. rOVEN ANTS BY LESSOR
Lessor hereby agrees as follows:
A. PEArEFTTT ENTOYMFNT Upon payment of all 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 Leased Premises and all rights and privileges herein granted.
B. rOMPT T A NrF., 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 Federal
Aviation Administration, or any other govemmental 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 of
adjoining property in the course of normal take-off and landing procedures from the
Airport; Lessor further warrants and represents that at all times during the Lease Term, or
any renewal or extension of same, that it will continue to comply with the foregoing.
VII. SPErTAT rONnTTTONS
It is expressly understood and agreed by and between Lessor and Lessee that this
Lease Agreement is subject to the following special terms and conditions.
RT TNW A YS ANn T A XTW A YS. Because of the present thirty thousand (20,000)
pound continuous use weight bearing capacity of the taxiway, Lessee herein agrees to limit
all aeronautical activity including landing, take-off and taxiing, to aircraft having an actual
weight, including the weight of its fuel, of thirty thousand (20,000) 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 of 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.
vm. T.EASEHOT n IMPROVEMENTS
A. REQTTTREMENTS' Before commencing the construction of any improvements
on the Leased Premises including Lessee's Improvements (the "Lease Improvements"),
Lessee shall submit:
Page 11
I. Documentation, specifications, or design work, to be approved by the Lessor,
which shall establish that the improvements to be built or constructed upon the
Leased Premises are in conformance with the overall size, shape, color, quality
and design, in appearance and structure of the program established by Lessor
on the Airport.
2. All plans and specifications showing the location upon the Leased Premises of
the proposed construction and improvements;
3. The estimated cost of such construction.
No construction may commence until Lessor has approved the plans and
specifications and the location of the Lease hnprovements, and the estimated costs of such
construction. Approval by the Lessor shall not be unreasonably withheld. Documentary
evidence of the actual cost of construction on public areas only (such as taxiways) shall be
delivered by Lessee to Lessor's City Manager from time to time as such costs are paid by
Lessee, and Lessor's City Manager or designee is hereby authorized to endorse upon a copy
of this Lease Agreement filed with the City Secretary of Lessor such actual amounts as he
shall have found to have been paid by Lessee, and the findings of the City Manager when
endorsed by him upon said contract shall be conclusive upon all parties for all purposes of
this Lease Agreement.
No later than 30 days after completion of the Lease hnprovements, Lessee shall
submit to Lessor detailed as built plans of the Lease hnprovements and documentary
evidence acceptable to Lessor evidencing the total cost to construct the Lease hnprovements
("Cost to Construct Lease hnprovements").
B. ADDITIONAT. rONSTRTTrTTON OR TMPROVFMFNTS: Lessee is hereby
authorized to construct upon the Leased Premises, at its own cost and expense, buildings,
hangars, and structures, that Lessor and Lessee mutually agree are necessary for use in
connection with the operations authorized. by this Lease Agreement, provided however,
Lessee shall comply with all of the requirements of Section Vill.A., above. Such additional
improvements shall be a part of the Lease hnprovements.
C. OWNFRSHTP OF TMPROVRMFNTS: Except as otherwise provided in this
Lease Agreement, the Lease hnprovements constructed upon the Leased Premises by
Lessee shall remain the property of Lessee during the Lease Term subject to the following
conditions, terms and provisions:
1. R"mov"l of HlIilciing'. No building or permanent fixture may be removed
from the Leased Premises.
2. A,,"mptinn. The Lease hnprovements shall automatically become the
property of Lessor absolutely free, without any cost to Lessor, at the end of the
Lease Term, or any extension thereof.
page 12
3. F~il11rp. to rnmmenr;p. or rnmpletp. T p.~~p.p.'!,: Tmpr()vp.mp.nt~. The Lease
Improvements shall immediately become the property of Lessor at no cost,
expense, or compensation to Lessee should Lessee fail to commence or
complete the Lessee's Improvements within the Commencement Period or
Construction Period as provided in Section II.D. ofthis Lease Agreement.
4. r"n~"l1Mion or T"nninMion. Should this Lease Agreement be canceled or
terminated before the end of the Lease Term, or extension thereof, Lessor shall
have the right to purchase all of the Lease Improvements. In the event of a
cancellation or termination, other then due to a default by Lessee that has not
been cured as provided below, the purchase price shall be equal to the most
recent value of the Lease Improvements as determined by the Denton County
Central Appraisal District ("Value of the Lease Improvements") reduced by
1/30 for each year of the Lease Term that has expired as of the date of
termination (the "Purchase Price"). Should the Denton County Central
Appraisal District not determine a separate value for the Lease Improvements,
or should such separate valuation be older than two years, then the Purchase
Price will be determined taking the Cost to Construct the Lease Improvements
reduced by 1/30 for each year the Lease Term has expired as of the date of
termination. If the termination or cancellation is due to a default by Lessee that
has not been cured within 30 days after written notice of default to Lessee,
then the Purchase Price as determined above shall be reduced by 50%.
However, if Lessee provides written notice to Lessor within said 30 day cure
period that it is impossible to cure such default within said time period, then
the Lessor may consent to an extension of such time to cure, which consent
will not be unreasonably withheld.
IX. SlffiROGATTONOFMORTGAGFF
Any person, corporation or institution that lends money to Lessee for construction
of any hangar, structure, building or improvement and retains a security interest in said
hangar, structure, building or improvement shall, upon default of Lessee's obligations to
said mortgagee, have the right to enter upon the Leased Premises and operate or manage
said hangar, structure, building or improvement according to the terms of this Lease
Agreement, for a period not to exceed the term of the mortgage with Lessee, or until the
loan is paid in full, whichever comes first, but in no event longer than the Lease Term. It
is expressly understood and agreed that the right of the mortgagee referred to herein is
limited and restricted to those improvements constructed with funds borrowed from
mortgagee, those improvements purchased with the borrowed funds, and those
improvements pledged to secure the refinancing of the improvements.
X. RIGHT OF FASFMRNT
Lessor shall have the right to establish easements, at no cost to Lessee, upon the
Leased Premises for the purpose of providing underground utility services to, from or
across the Airport property or for the construction of public facilities on the Airport.
Page 13
However, any such easements shall not interfere with Lessee's use of the Leased Premises
and Lessor shall restore the property to the original condition as is reasonable and
practicable upon the installation of any utility services on, in, over or under any such
easement at the conclusion of such construction. Construction in or at the easement shall be
completed within a reasonable time.
XI. ASSTGNMFNT OF T FASF
Lessee expressly covenants that it will not assign this Lease Agreement, convey more
than fifty percent (50%) of the interest in its business, through the sale of stock or otherwise,
transfer, license, nor sublet the whole or any part of the Leased Premises for any purpose,
except for rental of hangar space or tie-down space for storage of aircraft only, without the
written consent of Lessor. Lessor agrees that it will not unreasonably withhold its approval
of such sale, sublease, transfer, license, or assigrunent of the facilities for Airport related
purposes; provided however, that no such assigrunent, sublease, transfer, license, sale or
otherwise shall be approved if the rental, fees or payments, received or charged are in excess
of the rental or fees paid by Lessee to Lessor under the terms of this lease, for such portion
of the Leased Premises proposed to be assigned, subleased, transferred, licensed, or
otherwise. The provisions of this Lease Agreement shall remain binding upon the
assignees, if any, of Lessee. In the event of an assigrunent or sublease of this Lease
Agreement the Lessee, Assignee or Sub-Lessee will pay Lessor an administrative fee of
$500 and shall also pay all of Lessor's administrative costs of processing such an
assigrunent includllg, without limitation, all reasonable attorneys fees, administrative costs
and Lessor's staff time associated with the assigrunent.
XII. TNST TR A NrF
A. RFQTITRFO TNSTTRANrF: Regardless of the activities contemplated under this
Lease Agreement, Lessee shall maintain continuously in effect at all times during the term
ofthis agreement, at Lessee's sole expense, the following minimum insurance coverages:
I. Commercial (Public) General Liability covering the Lessee or its company, its
employees, agents, tenants and independent contractors, and its operations on the
airport. Coverage shall be in an amount not less than $1,000,000 per occurrence
and provide coverage for premises/operations and contractual liability AND where
exposure exists, coverage for: products/completed operations; explosion, collapse
and underground property damage.
2. All risk property insurance on a replacement cost basis covering loss or damage to
all facilities used by the Lessee, either as a part of this agreement or erected by the
Lessee subsequent to this agreement. Under no circumstances shall the Lessor be
liable for any damages to fixtures, merchandise or other personal property of the
Lessee or its tenants.
3. Business Automobile Liability to include coverage for OwnedlLeased Autos, Non-
Owned Autos and Hired Cars:
Page 14
For operation in aircraft movement areas the limit of liability shall be $100,000
per occurrence.
For other operations the limit of liability shall be consistent with the amount set
by State Law.
B. A OOTTTON A TrOVER AGFS: In addition to the above referenced coverages, the
following insurance is required if the activity or exposure exists or is contemplated:
1. Aircraft Fuel/Oil Storage and Dispensing - Comprehensive Commercial (public)
General Liability shall include coverage or separate coverage shall be provided for
Environmental Impairment Liability.
2. Aircraft Sales or Aircraft Charter and Air Taxi - Aircraft Liability in the amount of
$1,000,000 per occurrence to include Hull Coverage and Liability. In addition,
Passenger Liability in an amount of $100,000 per person (per passenger seat) shall
be provided.
3. Aircraft Rental or Flight Training - Aircraft Liability in the amount of $1,000,000
per occurrence to include Hull Coverage and Liability, Passenger Liability in the
amount of $100,000 per person (per passenger seat) and StudentlRenter Liability
covering all users in the amount of$500,000 per occurrence.
4. Specialized Commercial Flying (including crop dusting, seeding, and spraying,
banner towing and aerial advertising, aerial photography and surveying, fire
fighting, power line or pipe line patrol) - Aircraft Liability in the amount of
$1,000,000 per occurrence to include Hull Coverage and Liability. In addition,
Passenger Liability in an amount of $100,000 per person (per passenger seat) shall
be provided.
5. Aircraft Storage, Maintenance and/or Repair - Aircraft Liability in the amount of
$1,000,000 per occurrence to include Hull Coverage and Liability. In addition,
Hanger Keepers Liability in the amount of $500,000 per occurrence shall be
provided.
The requirement for Hangar Keepers Liability shall not apply to individual
owner/operators whose primary use of the hangar space is the storage of their
own aircraft. The requirement does not apply to such individuals
notwithstanding the fact that they may, from time to time, permit the storage of
non-owned aircraft in the hangar space and charge a fee for the storage of such
aircraft so long as such use is in the nature of a rent-sharing agreement rather
than a commercial aircraft storage business.
c. rOVER AGE RFQT ITREMFNTS: All insurance coverages shall comply with the
Page 15
following requirements:
I. All liability policies shall name the City of Denton, and its officers and employees
as an additional named insured and provide for a minimum of 30 days written
notice to the City of any cancellation or material change to the policy.
2. All insurance required by this Lease Agreement must be issued by a company or
companies of sound and adequate financial responsibility and authorized to do
business in the State of Texas. All policies are subject to the examination and
approval of the City's office of Risk Management for their adequacy as to content,
form of protection and providing company.
3. Required insurance naming the City as an additional insured must be primary
insurance and not contributing with any other insurance available to the City
whether from a third party liability policy or other. Said limits of insurance shall in
no way limit the liability of the Lessee hereunder.
4. The Lessor shall be provided with a copy of all such policies and renewal
certificates. Failure of Lessee to comply with the mirrimum specified amounts or
types of insurance as required by Lessor shall constitute Lessee's default of this
Lease Agreement.
5. During the Lease Term, or any extension thereof, Lessor herein reserves the right
to, with 60 days notice, 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 Denton Municipal Airport in size and in scope of aviation activities, located in
the southwestem region of the United States.
XIII. rA NrFT T A TTON HY T FSSOR
A. In the event that Lessee shall file a voluntary petition in bankruptcy or
proceedings in bankruptcy shall be instituted against it 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 Lessee shall be divested of its estate herein by other operation of
law; or Lessee shall fail to perform, keep and observe any of the terms, covenants, or
conditions herein contained, or on its part to be performed except for defaults for failure
to supply drainage plans or commencement period or construction period defaults
described in Section II. C. which are covered in subsection B of this Section, the Lessor
may give Lessee written notice to correct such condition or cure such default and, if any
condition or default shall continue for thirty (30) days after the receipt of such notice by
Lessee, then Lessor may terminate this Lease Agreement by written notice to Lessee.
However, if Lessee provides written notice to Lessor within said 30 day cure period that it is
Page 16
impossible to cure such default within said time period, then the Lessor may consent to an
extension of such time to cure, which consent will not be unreasonably withheld. In the
event of default, Lessor has the right to purchase any or all of the Lease Improvements
under the provisions of Section Vill.C.4. hereof. Lessee shall pay all of Lessor's costs
associated with such cancellation including, without limitation, Lessee's attorneys fees,
court costs, delinquent rental, staff time and other administrative costs and any other
damages or losses resulting from such cancellation.
B. The Lessee shall quit and surrender the premises. The Lessor may, at its
option, enter into and upon the leased premises, by force or otherwise, without being
liable for any prosecution thereof, and without becoming liable to the Lessee, for any
damages or for any payment of any kind whatsoever, and may at its uncontrolled
discretion, as agent of the Lessee, relet the leased premises, or any part thereof, for the
whole or any part or parts of the then un expired term. For purposes such reletting, the
Lessor may make alterations and modifications of the leased premises, and may receive
and collect all rent payable by virtue of said reletting. If Lessor shall, because of non-
payment of rent or other breach of condition or covenant or agreement, re-enter and
repossess the premises pursuant to the terms herein contained, by summary proceedings,
force, or otherwise, the Lessor may at its option, hold the Lessee liable for the difference
between the rent and other charges that would have been payable hereunder, during the
remainder of the lease term if this Lease had continued in force, and the net rent realized
by Lessor by means of re-letting to any other party or parties, on such terms and
conditions as may be in the uncontrolled discretion of the Lessor. The Lessee shall pay
monthly in advance, at such periods as the rent hereunder would have fallen due if this
Lease had continued, the differential between the original amount of each monthly
payment as herein provided for (plus such sums, if any, due from the Lessee as additional
and augmented rent) and the new proceeds of re-letting after deducting expenses of every
kind and nature in description including without limitation, attorneys fees incurred by the
Lessor, including late charges, commissions and the costs of alterations, modifications of
the premises made in reletting same or the expenses in removing or disposing any of
Lessee's property which remains on the premises.
Page 17
XIV. CANCH T ATTON RY T.FSSFF
Lessee may cancel this Lease Agreement, 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 anyone of the following events: (1) issuance by any court of competent juris-
diction of a permanent injunction in any way preventing or restraining the use of the 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 Lease 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 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 Leased Premises cannot be used for aviation purposes, then the Lessee may cancel
this Lease Agreement as aforesaid, or may elect to continue this Lease Agreement under its
terms, except, however, that the use of the Leased Premises shall not be limited to aviation
purposes, their use being only limited by such laws and ordinances as may be applicable at
that time.
xv. MTSCFTT ANFOTlS PROVTSTONS
A. FNTTRF AGRFEMENT. This Lease Agreement 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. RTNDTNG FFFFCT. All covenants, stipulations and agreements herein shall
extend to, bind and inure to the benefit of the legal representatives, successors and assigns
of the respective parties hereto.
C. SFVRR A RIT TTY. If a provision hereof shall be finally declared void or illegal by
any court or administrative agency having jurisdiction, the entire Lease Agreement 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.
D. NOTTr:F. 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:
Page 18
1. If to Lessor, addressed to:
City Manager
City of Denton
215 E. McKinney Street
Denton, Texas 76201
2. If to Lessee, addressed to:
Hangars Plus L.L.c.
Mr. Anthony Montgomery
President
904 Prenchtown Road
Argyle, Texas 76226
E. HFADTNGS. The headings used in this Lease Agreement are intended for
convenience of reference only and do not define or limit the scope or meaning of any
provision of this Agreement.
P. GOVFRNTNG TAW A NT) VFNT TF. This Lease Agreement is to be construed in
accordance with the laws of the State of Texas and is fully performable in Denton County,
Texas. Exclusive venue for any lawsuit to enforce the terms or conditions of this Lease
Agreement shall be a court of competent jurisdiction in Denton County, Texas.
G. NO W A TVFR. No waiver by Lessor or Lessee of any default or breach of
covenant or term of this Lease Agreement may be treated as a waiver of any subsequent
default or breach of the same or any other covenant or term of this Lease Agreement.
H. NO AGFNr:V, During all times that this Lease Agreement is in effect, the parties
agree that Lessee is and shall not be deemed an agent or employee of the Lessor.
I. FOR r:F M A TFT TR F. None of the Parties shall be in default or otherwise liable for
any delay in or failure of performance under this Lease Agreement if such delay or failure
arises by any reason beyond their reasonable control, including any act of God, any acts of
the common enemy or terrorism, the elements, earthquakes, floods, fires, epidemics, riots,
failures or delay in transportation or communications. However, lack of funds shall not be
deemed to be a reason beyond a Party's reasonable control. The Parties will promptly inform
and consult with each other as to any of the above causes, which in their judgment mayor
could be the cause of a delay in the performance of this Lease Agreement.
Page 19
IN WITNESS WHEREOF, the parties have executed this Lease Agreement as of the
Effective Date first above written.
CITY OF DENTON, TEXAS, LESSOR
Rya~
CITY MANAGER
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY~;\l\~01&k ~
APPROVED AS TO LEGAL FORM:
EDWIN M. SNYDER, CITY ATTORNEY
BY r;~Jjtd{
LESSEE
HANGARS PLUS, L.L.C.
BY: /~R[~
ANT NY MO GO RY,
PRESIDENT
Page 20
ACKNOWLEDGMENTS
THE STATE OF TEXAS ~
COUNTY OF DENTON ~
This instrument was acknowledged before me on the ~day of ~ . 2006, by
. Howard Martin, Interim City Manager of the City of Denton, Te as, on behalf of SaId
municipality.
$',~,:y?:t::.',
:i~.' "
;r t i
.. ..1
~iJ~,\~,f
~Ir."i'"
JANE E. RICHARDSON
Notary Public, State 01 Texas
My CommissIon Expires
JUne 21,2009
(;If/d c' hMtUdwJ
N . ARY PUBLIC, STATE OF TEXAS
THE STATE OF TEXAS ~
COUNTY OF DENTON ~
This instrument was acknowledged before me on the ~day of ~, 2006 by
Anthony Montgomery, a Texas corporation on behalf of said corporation.
&. CHRISTINE A. DICK
. ~ Hotary Plt>lIc
. . 1 StateofTeJtilS
.", tOMm. Exp. )-2-1009
Llu~~-t\, bl[(--
NOTARY PUBLIC, STATE OF TEXAS
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DESCRlPOON
..... 1mB
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ANDARD
I
LAND
SURVEY
ONII~~ ~r~"f~~TEl'f _
~Q~Q~AIiJL'JEQN
JOB
DATE:
DRAFT:
REVIEW:
060314-01
5 26 06
A.C.
H.C.I.
). BOX 116
UY. TX 76249
()-482-B723 OFFICE
()-482-3BBO FAX
S:\Our DOCllment.'l\Contract.'l\06\Montgomery Lease Agreement Amendment.doc
STATE OF TEXAS
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COUNTY OF DENTON
~
FIRST AMENDMENT TO
AIRPORT LEASE AGREEMENT
COMMERCIAL OPERATOR
THIS FIRST AMENDMENT TO THAT LEASE AGREEMENT made and executed on
the Sixth day of June, 2006 (the "Effective Date") at Denton, Texas, by and between the City of
Denton, Texas, a municipal corporation, hereinafter referred to as "Lessor", and Hangars Plus
L.L.C, hereinafter referred to as "Lessee".
WITNESSETH
SECTION 1. Sections II. "Leased Premises" and Section N. A. "Payments, Rentals and
Fees" of the Base Lease Agreement are hereby amended to read as follows:
"
.;
II. LEASED PREMISES
Lessor, for and in consideration of the covenants and agreements herein contained, to be
kept by Lessee, does hereby demise and lease unto Lessee, and Lessee does hereby lease from
Lessor, for the lease term described in Artjcle III, the following described land situated in
Denton County, Texas:
A. LAND. A tract of land, being approximately 74 feet by 63 feet or 4,662 square feet,
drawn and outlined and legally described on Attachment "A" as such attachment 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 r
mean all property located within the metes and bounds described and identified within Attachment
"A", including leasehold improvements constructed by the Lessee, but not including certain
easements or property owned and/or controlled by the Lessor.
IV. PAYMENTS, RENTALS AND FEES
A. LAND AND RENTAL. Rental shall be due and payable to Lessor in the sum of$0.I2
per square foot or $559.44 per year. The first years rental is payable in advance by Lessee on or
before the execution of this Lease Agreement and is non-refundable in the event the Lease is
terminated before the end of the first year. Thereafter rent is payable in twelve (12) equal monthly
installments in the sum of$46.62 per month (46.62) 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 year of this Lease Agreement.
Notwithstanding the foregoing, the annual rental will be reduced by the current lease rate per
square foot, as adjusted by the CPI-U referenced in Section IV.C., times the number of square
feed comprising all easements established in accordance with Article II (E).
SECTION 2. Save and except as amended hereby, all the remammg sections,
paragraphs, sentences, clauses, and phrases of the Base Lease Agreement shall remain in full
force and effect.
IN WITNESS WHEREOF, the City of Denton, Texas has caused this First Amendment
to the Lease Agreement to be executed by its duly authorized City Manager; and Lessee on this
the 3/Jv- day of ~)..(!/1\A J) o/'-..-- ,2006.
CITY OF DENTON, TEXAS, LESSOR
BY~~~ _
G 0 GE C. CA PBELL,
CITY MANAGER
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
"~1- U\~~
APPROVED AS TO LEGAL FORM:
EDWINM. SNYDER, CITY ATTORNEY
By: /L-W ~.
7' .
LESSEE
HANGARS PLUS, L.L.C.
By: ~~~RY,
PRESIDENT
Page 2
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