2001-178FILE REFERENCE FORM 2001-178
X Additional File Exists
Additional File Contains Records Not Public, According to the Public Records Act
Other
FILE(S) Date Initials
Lease Assignment & First Amendment to Airport Lease
A reement - Ordinance No. 2006-020 01/17/06 JR
Lease Assignment & Second Amendment to Airport Lease
A reement - Ordinance No. 2008-254 10/21/08 JR
Assignment of Commercial Airport Operator Lease Agreement -
Ordinance No. 2016-051 02/16/16 JR
s War mcummwW nwu I\Nw&Avimb ON mWJI Brown) eon
ORDINANCE NO &0/- i 7
AN ORDINANCE APPROVING A COMMERCIAL OPERATOR AIRPORT LEASE
AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND TRIANGLE AVIATION,
INC, AND PROVIDING AN EFFECTIVE DATE
THE COUNCIL OF THE CITY OF DENTON, TEXAS HEREBY ORDAINS
SECTION 1 The City Manager or his designee is hereby authorized to execute a airport
lease agreement for commercial operator between the City of Denton and John Brown, in
substantially the form of the Airport Lease Agreement which is attached to and made a part of
this ordinance for all purposes
SECTION 2 This ordinance shall become effective immediately upon its passage and
approval
PASSED AND APPROVED this the ~ day of ~2,"L , 2001
EULINE BROCK, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
BY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
BY
AIRPORT LEASE AGREEMENT
COMMERCIAL OPERATOR
THE STATE OF TEXAS §
COUNTY OF DENTON §
KNOW ALL MEN BY THESE PRESENTS
This lease is made and executed this day of
2001, at Denton, Texas, by and between the City of Denton, Texas,
a municipal corporation, hereinafter referred to as "Lessor", and
Mr John Brown, President, Triangle Aviation, Inc having
principal offices at 11505 Airway Boulevard, Roanoke, Texas 76262,
hereinafter referred to as "Lessee"
WITNESSETH:
WHEREAS, Lessor now owns, controls and operates the Municipal
Airport (Airport) in the City of Denton, County of Denton, State
of Texas, and
WHEREAS, Lessee desires to lease certain premises on said
airport 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 in this Agreement, the parties
agree as follows
1. 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 aero-
nautical 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 basis to all users thereof, and
2 To charge fair, reasonable and not unjustly
discriminatory 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 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, 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
nothing herein contained shall be
the granting of an exclusive right
U S C Appendix §1349
is understood and agreed that
construed to grant or authorize
within the meaning of Title 49
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
thereof to the United States Government for military or
BROWN LEASE AGREEMENT DOC - Page 2
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
5 This Lease shall be subordinate to the provisions of any
existing or future agreement between Lessor and the
United States or agency thereof, relative to the
operation or maintenance of the airport
II. LEASED PREMISES
Lessor, for and in consideration of the covenants and agree-
ments herein contained, to be kept by Lessee, does hereby demise
and lease unto Lessee, and Lessee does hereby hire and take from
Lessor, the following described land situated in Denton County,
Texas
A Land A tract of land, being approximately 18,000 square
feet, or 0 413 acres, drawn and outlined on Attachment "A" and
legally described in Attachment "B," such attachments being
incorporated herein by reference
Together with the right of ingress and egress to said proper-
ty, 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 "Premises" shall mean all
property located within 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 IMPROVEMENTS PROVIDED BY LESSOR NONE There will be no
improvements provided by Lessor, except as set forth in Article
II E "Access to Utilities" below
For the purpose of this Agreement, the term "Lessor improve-
ments" shall mean those things on or adjacent to the Premises
belonging to, constructed by, or to be constructed by the Lessor,
which enhance or increase, the value or quality of the leased land
BROWN LEASE AGREEMENT DOC - Page 3
or property 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
C ZA PROVE NT4 PROVTDF'D By T ESEEF - on described lot, Lessee
shall construct a hangar facility not less than 5,000 square feet
with taxiway access and appropriate culverts or drainage as
required 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 ordinances Said improvements shall
be completed not less than 365 days from the date of this
agreement Within two years of the date of this agreement, Lessee
shall construct an office and shop not less than 1,000 square
feet Said improvements will be made to the south side of the
then existing structure to compliment the proposed commercial
activities of the lease improvement
D EASFMMELME Lessor and Lessee by mutual agreement may
establish, on the leased premises, easements for public access on
roads and taxiways
E Annvae TO UTILITIES Lessor represents that there are
water and 3-phase electricity lines within three hundred feet
(3001) of the leased premises available to "tap-in" by Lessee, and
that the same are sufficient for usual and customary service on
the leased premises Lessee will be required to connect to the
sewer line located approximately fifty (60) feet south of said
lot
III. TERM
The term of this Agreement shall be for a period of thirty
years, eno120311, unlessy earlier terminateduing
through the last day of April,
under the provisions of the Agreement Any attempt by Lessee to
renegotiate this Lease shall be in writing addressed to the City
Manager or his designee at least one hundred eighty (180) days
before the expiration of the stated term of this lease, and at
least 180 days before the expiration of any additional
renegotiated period Lessee has the option to renew for two (2)
additional ten (10) year terms The rental and terms to be
negotiated shall be reasonable and consistent with the then value,
rentals and terms of similar property on the airport
IV. PAYMENTS, RENTALS AND FEES
Lessee covenants and agrees to pay Lessor, as consideration
for this lease, the following payments, rentals and fees
A LAND RENTAL shall be due and payable in the sum of $0 15
BROWN LEASE AGREEMENT DOC - Page 4
per square foot or Two Thousand Seven Hundred Dollars ($2,700 00)
per year, payable in twelve (12) equal monthly installments in the
sum of Two Hundred Twenty Five Dollars ($225 00) in advance, on or
before the 1st day of each and every month during the term of this
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
Notwithstanding the foregoing, the annual lease rental to be
reduced by the current lease rate per square foot, as adjusted by
the CPI-U referenced in Section IV D , times the number of square
feet comprising all easements established in accordance with
Article II(C)
B LESSOR IMPROVEMENTS RENTALS NONE There are no Lessor
improvements on the leased premises
C PAYMENT, PENALTY, ADJUSTMENTS All payments due Lessor from
Lessee shall be made to Lessor at the offices of the Finance
Department of the City of Denton, Accounts Receivable, 601 East
Hickory, Denton, Texas, unless otherwise designated in writing by
the Lessor If payments are not received on or before the 15th, a
five (5) percent penalty will be due as of the 16th If payments
are not received by the 1st of the subsequent month, an additional
penalty of one (1) percent of the unpaid rental/fee amount will be
due A one (1) percent charge will be added on the 1st of each
subsequent month until the unpaid rental/fee payment is made
Failure 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 improvements herein leased
shall be readjusted at the end of each one (1) year period during
the term of this lease 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 geographical region,
as compiled by the U S Department of Labor, Bureau of Labor
Statistics bears to the applicable index at the execution of this
lease The original land rental amount is based upon the formulae
set forth in Section IV A for the land herein leased Each
rental adjustment, if any, shall occur on the 1st day of April,
beginning 2002, and every other year thereafter on such date
The adjustments in 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 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
If the product of this multiplication is greater than the minimum
yearly rent as set forth in Section IV A , 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 minimum yearly rent of as
BROWN LEASE AGREEMENT DOC - Page 5
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 City 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 Lessees 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
4 Aircraft Maintenance To perform aircraft maintenance on
BROWN LEASE AGREEMENT DOC - Page 6
Lessee's and General Aviation aircraft upon the leased
premises
5 135 Air Taxi Operation To perform 135 Air Taxi
Operations with Lessee's aircraft
Lessee, his tenants and sublessees shall not be authorized to
conduct any services not specifically listed in this agreement
The use of the leased premises of Lessee, his tenants or
sublessees shall be limited to only those private, commercial,
retail or industrial activities having to do with or related to
airports and aviation No person, business or corporation may
operate a commercial, retail or industrial business upon the
premises of Lessee 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 STANDARDS Lessee shall meet or exceed the following
standards
1 Address Lessee shall file with the Airport Manager and
keep current his mailing addresses, telephone numbers and
contacts where he can be reached in an emergency
2 List Lessee shall file with the Airport Manager and keep
current a list of his tenants and sublessees
3 Conduct Lessee shall contractually require his employees
and sublessees (and sublessee's invitees) to abide by the
terms of this agreement Lessee shall promptly enforce
his contractual rights in the event of a default of such
covenants
4 Utilities, Taxes and Fees Lessee shall meet all expenses
and payments in connection with the use of the 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 Laws 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 Maintenance 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
BROWN LEASE AGREEMENT DOC - Page 7
the Premises, and shall keep said Premises neat, clean
and in respectable condition, free from any ob7ectional
matter or thing 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 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. 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 five 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 determining 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
S 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 industrial, 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, invitees, 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
BROWN LEASE AGREEMENT DOC - Page 8
deliver up the premises to Lessor in as good condition as
existed when possession was taken by Lessee, reasonable
wear and tear excepted
11 Hold Harmless Lessee shall indemnify and hold harmless
Lessor from and against all loss and damages, including
death, personal in3ury, loss of property or other
damages, arising or resulting from the operation of
Lessee's business in and upon the leased premises
12 Chemicals 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
13 Hazardous Activities Should Lessee violate any law,
rule, restriction or regulation of the City of Denton or
the Federal Aviation Administration, or should the Lessee
engage in or permit other persons or agents to engage in
activities which could produce hazards or obstruction to
air navigation, obstructions to visibility or
interference with any aircraft navigational aid station
or device, 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
immediately 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 premises and correct
the violation(s), 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
C SIGNS During the term of this Agreement, Lessee shall have
the right, at its own expense, to place in or on the leased
Premises signs identifying Lessee Said signs shall be of a
size, shape and design, and at a location or locations, approved
BROWN LEASE AGREEMENT DOC - Page 9
by the Lessor and in conformance with any overall directional
graphics or 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 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 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 AND TAXIWAYS That because of the present thirty
thousand (30,000) pound continuous use weight bearing capacity of
the runway and taxiways of the Airport, 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 (30,000), 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
BROWN LEASE AGREEMENT DOC - Page 10
revisions as such studies may dictate "Aeronautical Activity"
referred to in this clause shall include that activity of the
Lessee or its agents or subcontractors, and its customers and
inviteesi, but shall not include those activities over which it has
no soliicitory 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 sufficient to
cause the immediate termination of this entire Agreement and
subject Lessee to liability 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, 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 premises of the proposed construction,
3 The estimated cost of such construction
No construction may commence until Lessor, acting by its City
Council, has approved the plans and specifications and the
location of the improvements, the estimated costs of such
construction and the agreed estimated life of the building or
structure Approval by the City Council shall not be unreasonably
withheld, should the Council fail 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 public
areas only (such as taxiways) shall be delivered by Lessee to
Lessor"s City Manager or his designee from time to time as such
costs are paid by Lessee, and Lessor's City Manager or his
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 City Manager when endorsed by him upon said contract shall be
conclusive upon all parties for all purposes of this agreement
BROWN LEASE AGREEMENT DOC - Page 11
B ADDITIONAL CONSTRUCTION OR IMPROVEMENTS Lessee is hereby
authorized to construct upon the land herein leased, at his 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
commencing the construction of any improvements upon the premises,
Lessee shall submit plans and specifications for approval by
Lessor as specified in Article VIII A , above
C OWNERSHIP OF IMPROVEMENTS All buildings and improvements
constructed upon the premises by Lessee shall remain the property
of Lessee unless said property becomes the property of Lessor
under the following conditions, terms and provisions
1 Removal of Buildings No building or permanent fixture
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 this lease
shall automatically become the property of Lessor
absolutely in fee without any cost to Lessor
3 Building Life It is agreed that the life of the building
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 thirty (30) year expected
building life, it is especially understood and agreed
that Lessor reserves the right to purchase all buildings,
structures and improvements then existing upon the
premises by tendering to Lessee one thirtieth (1/30) of
the undepreciated value of such building for each year
remaining on the agreed life of such building The
undepreciated value of all improvements is to be
determined by having such improvements appraised by three
appraisers, one appointed by Lessor, one appointed by
Lessee and one appointed by the two appraisers
IX. SUBROGATION OF MORTGAGEE
A 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 said leased premises and operate or manage said hangar,
structure, building or improvement according to the terms of this
Agreement, for a period not to exceed the term
full, of the
heveorcomes
with Lessee, or until the loan is pad in
BROWN LEASE AGREEMENT DOC - Page 12
first, but in no event longer than the term of this lease 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
B Lessee shall have the right to place a first mortgage lien
upon the leasehold in an amount not to exceed eighty-five 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
airport property or for the construction of public facilities on
the Airport However, any such easements shall not interfere with
Lessee's use of the 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 will not assign this lease,
convey more than ten percent (1o%) of the interest in his
business, through the sale of stock or otherwise, transfer,
license, nor sublet the whole or any part of the said premises for
any purpose, except for rental of hangar space or tie-down space,
without 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 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 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 this agreement, at Lessee's
expense, the following insurance coverage
1 Comprehensive general liability covering the leased
BROWN LEASE AGREEMENT DOC - Page 13
premises, the Lessee or its company, its personnel, and
its operations on the airport
2 Aircraft liability to cover all flight operations of
Lessee
3 Fire and extended coverage for replacement value for all
facilities used by the Lessee either as a part of this
agreement or erected by the Lessee subsequent to this
agreement
4 Liability insurance limits shall be in the following
minimum amounts
Bodily Injury and Property Damage
One Million Dollars ($1,000,000) combined single limits
on a per occurrence bass
5 All policies shall e the City
of Denton
of
additional named insured and provide
for a minimu
m
the
thirty (30) days written notice to the
t
ll
City prior to
or lapse of
such
ion
a
effective date of any cance
policy
6 All policies must be approved by the Lessor
7 The Lessor shall be provided with a
copy of all
such
policies and renewal certificates
During the term of this lease, Lessor herein reserves the
right to adjust or increase the liability insurance amounts
required of the Lessee, and to require any additional rider,
provisions, or certificates of insurance, and Lessee hereby agrees
to provide any such insurance requirements as may be required by
Lessor; provided however, that any requirements shall be commensu-
aeilar with insurance to the Denton rMunicipal t Airport t in size and in scope airports of
aviation activities, located in the southwestern region of the
United States Lessee herein agrees to comply with all increased
or adjusted insurance requirements that may be required by the
Lessor throughout the original or extended term of this lease,
including types of insurance and monetary amounts or limits of
insurance, and to comply with said insurance requirements within
sixty (60) days following the receipt of a notice in writing from
Lessor stating the increased or adjusted insurance requirements
Lessee shall have the right to maintain in force both types of
insurance and amounts of insurance, which exceed Lessor's minimum
insurance requirements
In the event that State law should be amended to require types
of insurance and/or insurance amounts which exceed those of like
BROWN LEASE AGREEMENT DOC - Page 14
or similar public use airports in the southwesternasoeg on ofhthe
United States of America, then in such event, Ler shall
es of
in in f orce the right to require that Lessee maintecified by State w
insurance and/or amount of insurance as sp specified amounts
Failure of Lessee to comply with the minimum 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 for rany ecourt ashall atakeb]urisd pursuant r is ion of
to such proceedings, proceedings brought under the
Lessee and its assets pursuant to p or Lessee shall be
provisions of any Federal reorganization act,
divested of its estate herein by other operation of law, or tessee the shall fail to perform, keep and observe
oYanoy its part to be
covenants, or conditions herein contained,
performed, the Lessor may give Lessee written notice to on ect
such condition or cure such default and, if any ipt default shall continue thirty days after t rminate tth s elease by
such notice by Lessee,
written notice to Lessee In the event of default, Lessor has the
s
right to purchase any or all structures o tCe4 leased premremiissee
under the provisions of Section VIII Paragraph
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 time, y
of
thirty (30) days written notice, upon or after theaY happenournt of
any one of the following events (1)issuance by
competent jurisdiction of a permanent injunction in any way or a preventing or restraining the userie of said breach airpoessor fn anpart
thereof for airport purposes, (2) t by y of
the covenants or agreements contained he dnotndlthe f (90) r days
Lessor to remedy such breach for a p
after receipt of a written notice of the exiYsetnense8 of such breach, and f
acil ities
perid than ni e y (90) days due to any
(3) the in forl a y longer Lessee
continuing order, rule or regulation of any appropriate
law or any urisdiction over the operations s
governmental authority having or other casualty,
Lessor the
or due to war,
assumption or recapture by the United States Government, aof
authorized agency thereof, of the maintenance and o p or parts
said airport and facilities or any substantial p
thereof
upon the happening of any of the four events listed in the
BROWN LEASE AGREEMENT DOC - Page 15
preceding paragraph, such that the leased premises cannot be used
for aviation 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 ho ly limited by such
laws and ordinances as may be applicable
XV. MISCELLANEOUS PROVISIONS
A ENTIRE AGREEMENT This Agreement constitutes the entire
understands g between the parties and as of its effective date
supersedes all prior or independent Agreements b e we nmthefparties
covering the subject matter hereof Any change
hereof shall be in writing signed by both parties
B BINDING EFFECT All covenants, stipulations and agreements
and inure to the hereto
herein shall representatives, successors d and assigns of the erespectivehpartgies to,
C SEVERABILITY If a provision hereof shall be finally
declared ~voidor illegal by any court Agreement adminnotistrative v agency
having jurisdiction, the entire Ag be id, but
the remaining provisions shall continue in effect as nearly as
possible in accordance with the original intent of the parties
D NOTICE Any notice given by one party to the other in
connection with this agreement shall be in writing and shall be
sent by registered mail, return receipt requested, with postage
and registration fees prepaid as follows
1 If to Lessor, addressed to
city Manager
City of Denton
215 E McKinney Street
Denton, Texas 76201
2 If to Lessee, addressed to
Mr John Brown, President
Triangle Aviation, Inc
11505 Airway Boulevard
Roanoke, TX 76262
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
do not
Agreement define or limit the
for convenience of reference only
scope or meaning of an provision
BROWN LEASE AGREEMENT DOC - Page 16
F GOVERNING LAW This Agreement is to be construed in
accordance with the laws of the State of Texas court of
G MEDIATION Prior to instituting suit in a
competent ] adiction, the parties shall, in good faith attempt
to settle any controversy or claim by any party hereto arising out
by mediation
or relating to this Agreement in accordance with
the laws and rules, then obtaining, of the State of Texas and the
State Bar of Texas default Or WAIVER breach H Nof panto or waiver term of Lessor leases may obea treated as a
waiver of any subsequent default or breach of the same or any
other covenant or term of this Agreement times that this Lease is
deemed g n to
I INDEPENDENT CONTRACTOR During all agent or all be in effect, the parties agree that Lessee aandahnot an a
be an independent contractor and operator omissi employee of the Lessor with respect to their acts and shallons
is mutually agreed that
hereunder For all the purposes hereunder, Lessee deemed an independent contractor and it construed to
nothing contained herein shall be deemed or
between the parties
constitute a partnership or ]oint venture
IN WITNESS WHEREOF, the parties have executed this Agreement
as of the day and year first above written
CITY OF DENTON, TEXAS, LESbUK
BY
HOWARD MARTIN, I TERIM CITY MANAGER
ATTEST
JENNIFER WALTERSTEXASY SECRETARY
CITY OF DENTON, 1~r
BY
BROWN LEASE AGREEMENT DOC - page 17
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
CITY
BY
TRIANGLE AVIATION, INC
J
BY
TITLE tN4'5 I wen±
THE STATE OF TEXAS §
COUNTY OF DENTON §
This instrument was acknowledged before me on the~~day of
2001 by LESSEE
JEANETfE SCOTT
PUBLIC,STAT OF TEXAS
NOTARYPUSLIC 4NY-i
STATE OF TEXAS
or MY Commission EX01ree 03.31 2001
My Commission Expires
BROWN LEASE AGREEMENT DOC - Page 1s
ATTACHMENT
"A"
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ATTACHMENT "B"
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FIELD NOTES to all that certain tract or parcel of land lying and being situated in the Wiliam Nell
Survey Abstract Number 970 In the City of Denton Denton County Texas and bung a part of Lot
1 Block 1 of the Southeast Airport Addition an addition in the City of Denton Denton County
Texas according to the plat thereof recorded in Cabinet G Page 295 of the Plat Records of
Denton County Texas and being more particularly descnbed as follows
COMMFNCING at the most Westerly Southwest Corner of said Lot 1 Block l
THENCE North 08 Degrees 36 Minutes 21 Seconds East with the West line of said Lot i a
distance of 93622 feet
THENCE South 88 Degrees 36 Minutes 10 Seconds East a distance of 913 34 feel to a 112 Inch
Iron Rod Found at the Northwest corner of the herein described tract in the South line of a 130 foot
taxiway drainage and utility easement
THENCE South 88 Degrees 41 Minutes 08 Seconds East wth the North line of the subject tract
and the South line of said 130 foot easement a distance of 100 00 feel to a V2 Inch Capped Iron
Rod Set for the Northeast corner of the herein described tract
THENCE South 01 Degrees 22 Minutes 17 Seconds West with the East line of the subject tract a
distance of 180 00 feet to 12 Inch Capped Iron Rod Set for the Southeast corner of the herein
described tract
THENCE North 88 Degrees 37 Minutes 343 Seconds West with the South line of the subject tract
a distance of 100 00 feet to a 12 Inch Iron Rod Found for the Southwest corner of the herein
described tract
THENCE North 01 Degrees 22 Minutes 17 Seconds East with the West line of the subject tract a
distance of 179 90 feel to the Point of Beginning and containing in all 0 41 of an acre of land
more or less
These field notes with the accompanying sketch were prepared from an on the-ground survey
made under my direction and supervision on 03 19-01
FLOOD STATEMENT t have examined the F E M A Flood Insurance Rate Map for the City of
Ponder Denton County Texas Community Panel No 480194 effective date 3-30-98 and that
map Indicates that this property is in Zone X which is defined as Areas determined to be outside
of the 500 year flood as shown on Panel 0355 E of said map
-:r h- OS O Ztrzwi nor
~ or
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J E THOMPSON Rla L S 4857 Date
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20