2001-134
FILE REFERENCE FORM 2001-134
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First Amendment to Airport Lease Agreement – Ordinance No. 2009-043 02/17/09
AN ORDINANCE APPROVING A COMMERCIAL OPERATOR AIRPORT LEASE
AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND JACK FAAS, AND
PROVIDING AN EFFECTIVE DATE
THE COUNCIL OF THE CITY OF DENTON, TEXAS HEREBY ORDAINS
SECTION 1 The City Manager or h~s designee ~s hereby authorized to execute a alrpor~
lease agreement for eommercml operator between the City of Denton and Jack Faas, in
substantially the form of the Airport Lease Agreement which is attached to and made a part of
tbas ordinance for all purposes
SECTION 2 This ordinance shall become effective immediately upon ~ts passage and
approval
dayo , OO1
EC~INE BROCK, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
HERBERT L P//~O~TTORNEY
AIRPORT LEASE AGREEMENT
COMMERCIAL OPERATOR
THE STATE OF TEXAS §
§ KNOW ALL MEN BY THESE PRESENTS
COUNTY OF DENTON §
Th~s lease is made and executed this ~day of ~i ,
2001, at Denton, Texas, by and between the City of Denton, Texas,
a municipal corporation, hereinafter referred to as "Lessor", and
Mr Jack Faas hav~ng prznclpal offices at 6621 Brentwood Lane, The
Colony, Texas 75056, hereinafter referred to as "Lessee"
WITNESSETH~
WHEREAS, Lessor now owns, controls and operates the Municipal
Airport (A~rport) in the City of Denton, County of Denton, State
of Texas, and
WHEREAS, Lessee desires to lease certain premises on said
a~rport and construct and maintain an aircraft hangar and related
aviation facilities thereon, and
NOW, THEREFORE, for and in consideration of the promises and
the mutual covenants contained ~n this Agreement, the parties
agree as follows
I. CONDITIONS OF AGREEMENT
NOTWITHSTANDING ANY LANGUAGE TO THE CONTRARY HEREINAFTER
CONTAINED, THE LANGUAGE IN PARAGRAPHS A THROUGH D OF THIS SECTION
SHALL BE BINDING
A PRINCIPLES OF OPERATIONS The right to conduct
aeronautical and related activities for furnishIng services to the
public is granted to Lessee subject to Lessee agreeing
1 To furnish said services on a fair, equal and not
unjustly discriminatory bas~s to all users thereof, and
2 To charge fair, reasonable and not unjustly
d~scrlmlnatory prices for each unit or service,
provided, that Lessee may be allowed to make reasonable
and nondiscriminatory discounts, rebates, or other
similar types of price reductions to volume purchasers
B NON-DISCRIMINATION Lessee, for himself, his personal
representatives, successors and interests, 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 furnishings of services
thereon, no person on the grounds of race, religion,
color, sex, or national or,gin 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 Trans-
potation, Subtitle A, Office of the Secretary, Part 21,
Nondiscrimination 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 RIGHT OF INDIVIDUALS TO MAINTAIN AIRCRAFT 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-EXCLUSIVE 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 §1349
E 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 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
FAAS LEASE A~RE~MENT - Page 2
thereof to the Unmted States Government for mmlmtary or
naval use, and, mf such lease ms executed, the
provlsmons of this instrument mnsofar as they are
inconsistent w~th the provisIons of the lease to the
Government, shall be suspended
4 Lessor reserves the rmght to take any actmon bt
considers necessary to protect the aerial approaches of
the amrport against obstructmon, together wmth the
right to prevent Lessee from erecting, or permlttmng to
be erected, any bumldlng or other structure on or
adjacent to the airport which, mn the oplnmon of
Lessor, would limit the usefulness or safety of the
amrport or constmtute a hazard to aircraft or to
azrcraft navlgatzon
5 This Lease shall be subordmnate to the provIsions of
any exmstlng or future agreement between Lessor and the
United States or agency thereof, relatmve to the
operatmon or mamntenance of the amrport
II. LEASED PREMISES
Lessor, for and in consideration of the covenants and agree-
ments here~n contained, to be kept by Lessee, does hereby demise
and lease unto Lessee, and Lessee does hereby h~re and take from
Lessor, the following descrmbed land situated mn Denton County,
Texas
A Land A tract of land, bemng approxmmately 18,000 square
feet, or 0 413 acres, drawn and outlmned on Attachment UA", and
legally described mn Attachment ~B," such attachments being
zncorporated herein by reference
Together with the rmght of mngress and egress to said proper-
ty, and the right in common wmth others so authormzed of passage
upon the Airport property generally, sub]ect to reasonable
regulations by the Cmty of Denton and such rmghts shall extend to
Lessee's employees, passengers, patrons and lnvltees For
purposes of thms agreement, the term "Premises" shall mean all
property located within the metes and bounds descrmbed and
mdentlfmed wlthmn Attachment "B", lncludmng leasehold mmprovements
constructed by the Lessee, but not mncludmng certamn easements or
property owned and/or controlled by the Lessor
B IMPROVEMENTS PROVIDED BY LESSOR NONE There w~ll be no
mmprovements provided by Lessor, except as set forth in Artmcle
II E ~Access to Utllltmes" below
For the purpose of this Agreement, the term "Lessor improve-
ments'' shall mean those things on or adjacent to the Premises
FAAS LEASE AGREEMENT - Page
belonging to, constructed by, or to be constructed by the Lessor,
which enhance or Increase, the value or quality of the leased land
or property Unless otherwise noted herein, all Lessor
improvements are and will remain the property of Lessor All
Lessor improvements must be descrmbed in detail above, or above
referenced and attached to this Agreement mn an exhibit approved
by Lessor
C IMPROVEMENTS PROVIDED BY LESSEE On described lot, Lessee
shall construct a hangar/office facility not less than 4,500
square feet with taxmway access and appropriate culverts or
drainage as requmred by City ordinances in the utility right of
way south and north of the proposed hangar as well as other
improvements as determined necessary by City ordmnances Said
mmprovements shall be completed not less than 365 days from the
date of this agreement
D EASEMENTS Lessor and Lessee by mutual agreement may
establzsh, on the leased premises, easements for publmc access on
roads and taxlways
E ACCESS TO UTILITIES Lessor represents that there are
water and 3-phase electrmclty lines within three hundred feet
(300') of the leased premmses available to "tap-in" by Lessee, and
that the same are sufficient for usual and customary service on
the leased premmses Lessee wmll be requmred to connect to the
sewer lmne located approximately smxty (60) feet north of said
lot
III. TERM
The term of this Agreement shall be for a period of thirty
(30) years, commencing on the 1st day of April, 2001, and
continuing through the last day of March, 2031, unless earlmer
terminated under the provisions of the Agreement Any attempt by
Lessee to renegotlate this Lease shall be in writing addressed to
the City Manager or his desmgnee at least one hundred eighty
(180) days before the expmratlon of the stated term of this
lease, and at least 180 days before the expiration of any
additional renegotlated period Lessee has the option to renew
for two {2) additional ten {10) year terms The rental and terms
to be negotmated shall be reasonable and consistent wmth the then
value, rentals and terms of smmllar property on the amrport
IV. PAYMENTS, RENTALS AND FEES
Lessee covenants and agrees to pay Lessor, as conslderatmon
for this lease, the following payments, rentals and fees
Lessee covenants and agrees to pay Lessor, as consIderation
for this lease, the followmng payments, rentals and fees
FAAS LEASE AGREEMENT - Page 4
A LAND RENTAL shall be due and payable an the sum of $0 15
per square foot or Two Thousand Seven Hundred Dollars ($2,700 00)
per year, payable mn twelve (12) equal monthly anstallments mn the
sum of Two Hundred Twenty Fare Dollars ($225 00) mn advance, on or
before the 1st day of each and every month durmng the term of thms
agreement Lessee has the option to pay annual rentals and fees
mn whole on or before the 1st day of October, at the begannmng of
the Cmty's fmscal year, each and every year of thms lease
Notwmthstandmng the foregomng, the annual lease rental to be
reduced by the current lease rate per square foot, as adjusted by
the CPI-U referenced mn Sectmon IV D , t~mes the number of square
feet comprmsmng all easements establmshed mn accordance wmth
Artmcle II(C)
B LESSOR IMPROVEMENTS RENTALS NONE There are no Lessor
mmprovements on the leased premmses
C PAYMENT, PENALTY, ADJUSTMENTS All payments due Lessor from
Lessee shall be made to Lessor at the offices of the Finance
Department of the Cmty of Denton, Accounts Recemvable, 601 East
Hackory, Denton, Texas, unless otherwase desmgnated mn wrmtmng by
the Lessor If payments are not recemved on or before the 15th, a
fmve (5) percent penalty wmll be due as of the 16th If payments
are not recemved by the 1st of the subsequent month, an additmonal
penalty of one (1) percent of the unpaid rental/fee amount wmll be
due A one (1) percent charge will be added on the 1st of each
subsequent month until the unpamd rental/fee payment ms made
Faalure to pay the rent or penalty amounts on delinquent rent
shall constitute an event of default of this lease
The yearly rental for land and mmprovements heremn leased
shall be readjusted at the end of each two (2) year permod durang
the term of this lease on the basms of the proportion that the
then current Unmted States Consumer Prmce Index for all urban
consumers (CPI-U) for the Dallas-Fort Worth geographical regmon,
as compmled by the U S Department of Labor, Bureau of Labor
Statlstmcs bears to the applicable andex at the executmon of thms
lease The orlgmnal land rental amount is based upon the formulae
set forth mn Sectmon IV A for the land heremn leased Each rental
adjustment, if any, shall occur on the 1st day of April, begmnnang
2002, and every other year thereafter on such date
The ad3ustments mn the yearly rent shall be determIned by
multiplying the minimum yearly rent as set forth in Section IV A
by a fraction, the numerator of whmch as the mndex number for the
last month prior to the ad3ustment, and the denommnator of whmch
ms the mndex number applicable at the executmon of thas lease
If the product of this mult~placataon ms greater than the manmmum
yearly rent as set forth in Section IV A , Lessee shall pay th~s
greater amount as the yearly rent untzl the tame of the next
rental adjustment as called for in this section If the product
of this multiplication is less than the minimum yearly rent of as
set forth in Section IV A , 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 year shall not exceed the annual rental payment calculated
for the previous year by more than twenty (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 term of this lease, the remaining rental
adjustments called for in this section shall be made using the
formula set forth in Subsection (a) above, but 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 C~ty Average are
discontinued during the term of this lease, 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 term of
this lease, 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. RIGHTS AND OBLIGATIONS OF LESSEE
A USE OF LEASED PREMISES Lessee is granted the non-exclusive
privilege to engage in or provide the following
1 Hangar Leases and Rental The rental or lease of
hangars and hangar space and related facilities upon the
leased premises
2 Office Space Lease or Rental The rental or lease of
office space in or adjoining Lessee's hangars
3 Aircraft and Storage To provide storage of both
Lessee's and sublessees' aircraft and aviation related
equipment and supplies upon or within the leased
premises
FAAS LEASE AGREEMENT - Page 6
Lessee, hms tenants and sublessees shall not be authormzed to
conduct any servmces not specifically lmsted in this agreement
The use of the leased premmses of Lessee, hms tenants or
sublessees shall be lmmlted to only those prmvate, commercIal,
retaml or industrial actlv~tles having to do with or related to
amrports and avmat~on No person, busmness or corporation may
operate a commercmal, retail or Industrial bus,ness upon the
premises of Lessee or upon the Airport without a lease or lmcense
from Lessor authorizing such commercmal, retaml or mndustrmal
actmv~ty The Lessor shall not unreasonably wmthhold
authormzatmon to conduct aeronautmcal or related services
B STANDARDS Lessee shall meet or exceed the followmng
standards
1 Address Lessee shall f~le wmth the Amrport Manager and
keep current hms mamllng addresses, telephone numbers and
contacts where he can be reached ~n an emergency
2 Lmst Lessee shall f~le with the Azrport Manager and
keep current a list of hms tenants and sublessees
3 Conduct Lessee shall contractually require his
employees and sublessees (and sublessee's ~nvmtees) to
abide by the terms of this agreement Lessee shall
promptly enforce his contractual rmghts mn the event of a
default of such covenants
4 Ut~lltles, Taxes and Fees Lessee shall meet all expen-
ses and payments in connection wmth the use of the Premi-
ses and the rights and privileges heremn granted,
~ncludmng the timely payment of utml~tmes, taxes, permmt
fees, lmcense fees and assessments lawfully levied or
assessed
5 Laws Lessee shall comply wmth all current and future
federal, state and local laws, rules and regulatmons
which may apply to the conduct of business contemplated,
mncludmng rules, regulatmons and ordmnances promulgated
by Lessor, and Lessee shall keep mn effect and post ~n a
prommnent place all necessary and/or requmred lmcenses or
permits
6 Maintenance of Property Lessee shall be responsmble for
the mamntenance, repair and upkeep of all property,
bulldmngs, structures and zmprovements, mncludmng the
mowing or el~mlnatmon of grass and other vegetation on
the Premmses, and shall keep samd Premmses neat, clean
and mn respectable cond~tzon, free from any ob3ectlonal
matter or thing Lessee agrees not to utmlmze or permmt
FAAS LEASE AGREEMENT - Page 7
others to utilize areas on the leased 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 dzstract 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 Painting of Buildings During the original term of this
Lease and during each extensIon, Lessor shall have the
right to require, not more than once every f~ve years,
that the metal exterior of hangar(s) or building(s)
located on the premises be reviewed by the Airport
Advisory Board for the purpose of determzn~ng whether
painting of the exteriors of such buildIngs or hangars is
necessary If the Airport Advisory 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 Lessors
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's City Council within one (1) year period shall
constitute Lessee's default under this Lease
8 Unauthorized use of premises Lessee may not use any of
the leased land or premises for the operation of a motel,
hotel, restaurant, private club or bar, apartment house,
or for ~ndustr~al, commercIal or retail purposes, except
as authorized herein
9 Dwellings It is expressly understood and agreed that no
permanent dwelling or domicile may be built, moved to or
established on or within the leased premises nor may
lessee, his tenants, lnvltees, or guests be permitted to
reside or remain as a resident on or within the leased
premises or other airport premises
10 Quit PossessIon Lessee shall quit possession of all
premises leased herein 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
FAAS LEASE AGREEMENT - Page 8
wear and tear excepted
11 Hold Harmless Lessee shall lndemnmfy and hold harmless
Lessor from and against all loss and damages, lncludmng
death, personal injury, loss of property or other
damages, arlsmng or resulting from the operation of
Lessee's business in and upon the leased premises
12 Chemicals Lessee agrees to properly store, collect and
d~spose of all chemicals and chemical resmdues, to
properly store, confmne, collect and dmspose of all
paint, including paint spray in the atmosphere, and paint
products, and to comply wmth all Local, State and Federal
regulations governing the storage, handlmng or disposal
of such chemicals and paints
13 Hazardous Actlvmt~es Should Lessee vmolate any law,
rule, restrlctmon or regulation of the Cmty of Denton or
the Federal Aviation Admmnlstratlon, or should the Lessee
engage mn or permit other persons or agents to engage mn
actlvlt~es which could produce hazards or obstruction to
amr navmgatmon, obstructions to vmsmbllmty or
interference with any aircraft navlgatmonal amd statmon
or device, whether airborne or on the ground, then Lessor
shall state such vmolatmon mn wrmtmng and delmver wrmtten
notice to Lessee or Lessee's agent on the leased
premises, or to the person(s) on the leased premmses who
are causing said violation(s), and upon delivery of such
wrmtten notmce, Lessor shall have the rmght to demand
that the person(s) responsible for the vmolatlon(s) cease
and desist from all such actmvmty creating the
violation(s) In such event, Lessor shall have the right
to demand that correctmve action, as required, be
commenced mmmedlately to restore the leased premmses into
conformance wmth the partmcular law, rule or aeronautmcal
regulation bemng violated Should Lessee, Lessee's
agent, or the person(s) responsmble for the vlolatmon(s)
fall to cease and desmst from sazd vlolatmon(s) and to
immediately commence correctmng the vmolatmon(s), and to
complete said corrections wlthln twenty-four (24) hours
followmng written notification, then Lessor shall have
the right to enter onto the leased premmses and correct
the violation(s), and Lessor shall not be responsmble for
any damages incurred to any mmprovements on the leased
premises as a result of the corrective actmon process
C SIGNS Durmng the term of thms Agreement, Lessee shall have
the rmght, at mrs own expense, to place mn or on the leased
Premmses signs ldentmfymng Lessee Said signs shall be of a s~ze,
shape and design, and at a location or locatmons, approved by the
Lessor and mn conformance with any overall dmrectmonal graphics or
FAAS LEASE AGREEMENT - Page
sign program established by Lessor for the Airport Lessor's
approval shall not be withheld unreasonably Said signs shall be
maintained in good repair throughout the term of this agreement
Notwithstanding any other provision of this agreement, said 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 Agreement or
extensions thereof
VI. COVENANTS BY LESSOR
Lessor hereby agrees as follows
A 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 leased premises and all rights and privileges herein granted,
B COMPLIANCE Lessor warrants and represents that in the
establishment, construction and operation of said Denton Municipal
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 governmental
authority relating to and including, but not limited to, noise
abatement, air rights and easements over ad]olnlng 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 said Denton Municipal 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
VII. SPECIAL CONDITIONS
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
A RUNWAYS ~ TAXIWAYS That because of the present thirty
thousand (30,000) pound continuous use weight bearing capacity of
the runway and taxlways of the Airport, Lessee herein agrees to
limit all aeronautical activity ~ncludlng landing, take-off and
taxiing, to aircraft having an actual weight, including the weight
of its fuel, of thirty thousand (30,000), until such time that the
runway and designated taxlways 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
FAAS LEASE AGREEMENT - Page 10
revisions as such studies may dictate "Aeronautical Activity"
referred to in thms clause shall include that activity of the
Lessee or mts agents or subcontractors, and its customers and
lnvmtees, but shall not Include those actlvltmes over which mt has
no sollcltory part or control, such as an unsolicited or
unscheduled or emergency landing A pattern of negligent
disregard of the provisions of this section shall be suffmclent to
cause the immediate termmnatlon of thms entire Agreement and
subject Lessee to lmabllmty for any damages to the Airport that
might result
VIII. LEASEHOLD IMPROVEMENTS
A REQUIREMENTS Before commencing the construction of any
improvements upon the premises, Lessee shall submit
1 Documentation, speclfmcat~ons, 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 mn conformance wmth the overall size, shape,
color, quality and design, in appearance and structure of
the program establmshed by Lessor on the Airport
2 All plans and specmflcatlons showing the location upon
the premises of the proposed construction,
3 The estmmated cost of such construction
No construction may commence untml Lessor, acting by its City
Council, has approved the plans and speclflcatmons and the
location of the improvements, the estimated costs of such
construction and the agreed estmmated life of the bulldmng or
structure Approval by the City Council shall not be unreasonably
wmthheld, should the Councml fall to deny Lessee's plans and
specifications within sixty (60) days of submission thereof to the
Council, such plans and specifications shall be deemed approved
Documentary evidence of the actual cost of construction on publmc
areas only (such as taxmways) shall be delivered by Lessee to
Lessor's City Manager or his designee from tmme to time as such
costs are pamd by Lessee, and Lessor's Cmty Manager or hms
designee is hereby authorized to endorse upon a copy of this lease
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 Cmty Manager when endorsed by him upon said contract shall be
conclusive upon all parties for all purposes of th~s agreement
B ADDITIONAL CONSTRUCTION OR IMPROVEMENTS Lessee ms hereby
authorized to construct upon the land herein leased, at hms 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, provided however, before
FAAS LEASE AGREEMENT - Page
commencing the construction of any improvements upon the premises,
Lessee shall submit plans and specmflcatlons for approval by
Lessor as specified in Article VIII A , above
C OWNERSHIP OF IMPROVEMENTS All bumldmngs and improvements
constructed upon the premises by Lessee shall remamn the property
of Lessee unless said property becomes the property of Lessor
under the following conditions, terms and provlsmons
1 Removal of Bumldln~s No bumldmng or permanent fmxture
may be removed from the premises
2 Assumption All buildings and improvements of whatever
nature remaining upon the leased premises at the end of
the primary term, or any extension thereof, of thms
lease shall automatically become the property of Lessor
absolutely in fee without any cost to Lessor
3 Bulldmn~ Life It is agreed that the life of the
bumldlng to be constructed by Lessee on the property
herein leased is thirty (30) years
4 Cancellation Should this lease be cancelled for any
reason before the end of the thmrty (30) year expected
building life, it Ks especmally understood and agreed
that Lessor reserves the right to purchase all
buildings, structures and improvements then exlstmng
upon the premises by tendermng to Lessee one thirtieth
(1/30) of the undeprecmated value of such bulldmng for
each year remaining on the agreed lmfe of such
building The undeprecmated value of all improvements
is to be determined by having such mmprovements
appraised by three appraisers, one appointed by Lessor,
one appointed by Lessee and one appointed by the two
appramsers
IX. SUBROGATION OF MORTGAGEE
A Any person, corporation or institution that lends money to
Lessee for construction of any hangar, structure, building or
mmprovement and retains a security mnterest in samd hangar,
structure, bulldmng or improvement shall, upon default of
Lessee's obligations to said mortgagee, have the right to enter
upon said leased premmses and operate or manage samd hangar,
structure, building or mmprovement according to the terms of this
Agreement, for a permod not to exceed the term of the mortgage
wmth Lessee, or until the loan is paid in full, whmchever comes
first, but in no event longer than the term of thms lease It is
expressly understood and agreed that the right of the mortgagee
referred to herein is limited and restricted to those
mmprovements constructed with funds borrowed from mortgagee,
FAAS LEASE AGREEMENT - Page 12
those improvements purchased with the borrowed funds, and those
improvements pledged to secure the refinancing of the
Improvements
B Lessee shall have the right to place a first mortgage l~en
upon the leasehold in an amount not to exceed e~ghty-flve percent
(85%) of the construction cost or current market value of the
leasehold improvements
X. RIGHT OF EASEMENT
Lessor shall have the right to establish easements, at no cost
to Lessee, upon the leased ground space for the purpose of
providing underground utility services to, from or across the
a~rport property or for the construction of public facilities on
the Airport However, any such easements shall not interfere with
Lessee's use of the leased premises and Lessor shall restore the
property to original condition upon the installation of any
utility services on, in, over or under any such easement or the
conclusion of such construction Construction in or at the
easement shall be completed within a reasonable time
XI. ASSIGNMENT OF LEASE
Lessee expressly covenants that it w~ll not assign this lease,
convey more than ten percent (10%) of the ~nterest ~n h~s
business, through the sale of stock or otherwise, transfer,
l~cense, nor sublet the whole or any part of the said premises for
any purpose, except for rental of hangar space or t~e-down space,
w~thout the written consent of Lessor Lessor agrees that it will
not unreasonably withhold its approval of such sale, sublease,
transfer, license, or assignment of the facilities for the airport
related purposes, provided however, that no such assignment,
sublease, transfer, license, sale or otherwise shall be approved
if the rental, fees or payraents, 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 premises proposed to be
assigned, subleased, transferred, licensed, or otherwise The
provisions of this lease shall remain binding upon the assignees,
if any, of Lessee
XII. INSURANCE
A REQUIRED INSURANCE Lessee shall maintain continuously in
effect at all times during the term of th~s agreement, at Lessee's
expense, the following insurance coverage
1 Comprehensive general liability covering the leased
premises, the Lessee or its company, its personnel, and
its operations on the airport
FAAS LEASE AGREEMENT - Page 13
2 Aircraft llabllmty to cover all flight operations of
Lessee
3 Fmre and extended coverage for replacement value for all
facmlltles used by the Lessee either as a part of thzs
agreement or erected by the Lessee subsequent to thms
agreement
4 Lmablllty insurance limits shall be in the following
minimum amounts
Bodily In]ury and Property Damage
One Mmlllon Dollars ($1,000,000) combined szngle lmmlts
on a per occurrence basms
5 Ail policies shall name the Cmty of Denton as an
additional named insured and provide for a minimum of
thirty (30) days written notice to the Cmty prior to the
effective date of any cancellatmon or lapse of such
policy
6 Ail pollcmes must be approved by the Lessor
7 The Lessor shall be provided wmth a copy of all such
policies and renewal certlfmcates
During the term of this lease, Lessor heremn reserves the
rmght to adjust or increase the lmabmllty insurance amounts
required of the Lessee, and to requmre 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 requmrements shall be commensu-
rate with insurance requirements at other public use airports
smmmlar to the Denton Municipal Amrport mn smze and in scope of
aviation activIties, located in the southwestern regmon of the
Unmted States Lessee heremn agrees to comply wmth all increased
or ad]usted Insurance requirements that may be required by the
Lessor throughout the original or extended term of this lease,
including types of mnsurance and monetary amounts or lmmlts of
· nsurance, and to comply wmth said insurance requirements wmthin
sixty (60) days following the receipt of a notmce in writing from
Lessor stating the increased or adjusted insurance requmrements
Lessee shall have the right to ma~ntamn mn force both types of
insurance and amounts of insurance, which exceed Lessor's minimum
mnsurance requirements
In the event that State law should be amended to require types
of insurance and/or insurance amounts whmch exceed those of like
or simllar public use amrports in the southwestern region of the
FAAS LEASE AGREEMENT ~ Page 14
United States of America, then in such event, Lessor shall have
the right to require that Lessee maintain in force types of
insurance and/or amount of insurance as specified by State law
Failure of Lessee to comply with the minimum specified amounts
or types of Insurance as required by Lessor shall constitute
Lessee's default of this Lease
XIII. CANCELLATION BY LESSOR
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 ad3udlcated bankrupt pursuant
to such proceedings, or any court shall take 3urlsdlctlon of
Lessee and ~ts assets pursuant to proceedings brought under the
provisions of any Federal reorganization act, or Lessee shall be
d~vested of its estate herein by other operation of law, or Lessee
shall fall to perform, keep and observe any of the terms,
covenants, or conditions here~n contained, or on its part to be
performed, the Lessor may give Lessee written not~ce 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 by
written notice to Lessee In the event of default, Lessor has the
r~ght to purchase any or all structures on the leased premises
under the provisions of Section VIII Paragraph C 4 (Cancellation)
hereof
XiV. CANCELLATION BY LESSEE
Lessee may cancel this Agreement, in whole or part, and termi-
nate all or any of its obligations hereunder at any t~me, by
thirty (30) days written notice, upon or after the happening of
any one of the following events (1) issuance by any court of
competent ~urlsd~ctlon of a permanent injunction in any way
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 said 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
FAAS LEASE AGREEMENT - Page 15
for avlatlon purposes, then the Lessee may cancel this lease as
aforesaid, or may elect to continue this lease 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. MISCELLANEOUS PROVISIONS
A ENTIRE AGREEMENT This 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 BINDING EPFECT Ail 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 SEVERABILITY If a provision hereof shall be finally
declared void or illegal by any court or administrative agency
having ~urlsdlctlon, the entire 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 part~es
D NOTICE Any notice given by one party to the other in
connection with this agreement shall be ~n writing and shall be
sent by registered mall, return receipt requested, with postage
and registration fees prepaid as follows
1 If to Lessor, addressed to
City Manager
City of Denton
215 E McKlnney Street
Denton, Texas 76201
2 If to Lessee, addressed to
Mr Jack Faas
6621 Brentwood Lane
The Colony, TX 75056
Notices shall be deemed to have been received on the date of
receipt as shown on the return receipt
E HEADINGS The headings used in this Agreement are intended
for convenience of reference only and do not define or limit the
scope or meaning of any provision of this Agreement
FAAS LEASE AGREEMENT - Page 16
F GOVERNING LAW Thzs Agreement zs to be construed in
accordance wlth the laws of the State of Texas
G MEDIATION Przor to instituting sult in a court of
competent jurisdiction, the partzes shall, in good faith attempt
to settle any controversy or clazm by any party hereto arising out
of or relating to thzs Agreement by medzatlon in accordance with
the laws and rules, then obtalnzng, of the State of Texas and the
State Bar of Texas
H NO WAIVER No waiver by Lessor or Lessee of any default or
breach of covenant or term of this lease may be treated as a
wazver of any subsequent default or breach of the same or any
other covenant or term of thzs Agreement
I INDEPENDENT CONTRACTOR During all times that this Lease
is in effect, the parties agree that Lessee is and shall be deemed
to be an independent contractor and operator and not an agent or
employee of the Lessor with respect to their acts or omlsszons
hereunder For all the purposes hereunder, Lessee is and shall be
deemed an independent contractor and it is mutually agreed that
nothing contained herein shall be deemed or construed to
constitute a partnershzp or joint venture between the parties
IN WITNESS WHEREOF, the parties have executed this Agreement
as of the day and year first above written
CITY OF DENTON, TEXAS, LESSOR
Howard Mar[zn,~TY MANAGER
ATTEST
JENNIFER WALTERS, CITY SECRETARY
CITY OF DENTON, TEXAS
FAAS LEASE AGREEMENT - Page 17
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
CITY OF DENTON, TEXAS
THE STATE OF TEXAS §
COUNTY OF DENTON
This instrument was acknowledged before me on the /~t~[ day of
~o~ , 200~ by LESSEE
My Commission Expires
AGREEMENT - Page 18
Attachment A
,000~1 ($ 0£g2,,10 N) ~.
Attachment B
E×HII~IT ~C'
FIELD NOTE8 to all that certain tract of land situated In tho W~lllom Nell Survey, Abstract Number ~70 in tho
oM ~nd County of Donjon, Texas and being e pert of Lot 1 Block 1 of th~ Southeast Airport Addrflon, an addMon
In the O~Y of Denton, Denton County, Texas, according to the Plat thereof recorded In Cabinet O Page 2e5 of
the Plot Records of Denton O0~nty, TeXaS, the aubJeol tract being rnor~, particularly described as follows',
Commencing at the moat Westerly Southwest comer cf said Lot 1 Block 1,
THENCE North 08 IDogr~ 36 bllnut~m 21 Seconds East with the West line thereof e distance of 1067 51 feet
to ~ corner,
THENCE South 8B Degrees 36 Minutes 10 Seconds East a dls~ance or 896 84 feet to a capped iron rod set
for thm Southwest Corner ofth~ herein described tract In the North line of a 130 foot taxlway, drain ag a and utility
easement,
THENCE North 01 Degyeee 23 MInute~ 50 Seconds East a dr~tance of 1Bo 00 feet to a capped Iron rod ~mt for
tho Northwest Corner of the herein described tract In the South Iin~ of a 60 foot access, drainage and uMIty
easement,
THENOE South 86 Degrees ~ Minutes 10 Seconds East with the 8curb hne thereof a distance of 100 00 feet
to a capped Iron rod iai for the Northeast Oorner of the herein described tract,
THENCE Soqth 01 Degrees 23 Minutes 60 Seconds Wast ii distance of 180 00 fast to e capped iron rod est
for the Southeast Comer of the herein described travt In the North Itme of said ~ 30 foot easement,
THENCE Nollh 68 Degrees ~8 Minutes 10 8e0ohds West with amid North bna e all,range of 100 O0 feet to the
PLACE OF BEGINNIN~ and enclosing 18,000 square feet of land
These Field Notes with the accompanying sketch were prepared from aq on the.ground survey mede under
my direction and supervision on January 9. t997, There era no visible ct apparent Intrumena, protrusions or
easements except as shown
Th~s survey wee prepared without the benefit of a 'aria binder or schedule [~
R P L S No ~312 Date