2001-414FILE REFERENCE FORM I 2001-414 I
X
Additional File Exists
Additional File Contains Records Not Public, According to the Public Records Act
Other
FILE(S) Date Initial:
Lease terminated by Ordinance No. 2004-102 04/06/04
S \Our Documeqts\Ordmances\01~Bndges Airport Lease 01 doc
CITY OF ~ENTON A~ PAUL B~GES FOR USE OF A PORTION OF THE DENTON
M~ICIP~ AI~ORT FOR COMMERCI~ HANG~OFFICE A~ ~LATED
SERVICES, A~ PROVID~G ~ EFFECTIVE DATE
~E~AS, The Denton A~o~ Adwso~ Board has recommended the approval of the
hereto described A~o~ Lease Agreement, ~d
~E~AS, the C~ty Council of the C~ty of Denton, Texas hereby finds that smd A~o~
Lease Agreement m ~n the pubhc ~nterest, NOW, THEREFOR
THE CO~CIL OF THE C~TY OF DENTON HEREBY O~AINS
SECTION 1 The C~ty M~ager, or h~s demgnee, ~s hereby authomzed to execute ~
A~o~ L~e Agreement be~een ~e City of Denton ~d Paul Bmdges in subst~tmlly ~e fo~
of the A~o~ Le~e Agreement whmh m attached to ~d made a p~ of thru ordm~ce for all
p~oses, for ~e pu~ose of prowd~ng commercml h~gar/office ~d related se~mes at the
Denton M~m~pal A~o~ The C1~ M~ager, or h~s demgnee, m authomzed to exercme ~y of
the C~ty's rights or duties under the A~o~ Lease Agreement
SECTION 2 Th~s ordinate shall become effective ~edlately upon ~ts passage ~d
approval
PASSED A~ ~PROVEDth~sthe ~ ~ _dayof ~/~ ,2001
EULINE BROCK, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
VED AS TO LEGAL FORM
HERBERT L PROUTY, TY ATTORNEY
BY ' ~
AIRPORT LEASE AGREEMENT
COMMERCIAL OPERATOR
THE STATE OF TEXAS §
§ KNOW ALL MEN BY THESE PRESENTS
COUNTY OF DENTON §
Th~s~lease ~s made and executed thls~ day of November, 2001, at Denton, Texas,
by and between the C~ty of Denton, Texas, a mumc~pal corporation, hereinafter referred
to as "Lessor", and a Mr Paul J Bridges hawng h~s pnnc~pal offices at 2105 Acorn Bend,
Denton, Texas 76210, hereinafter referred to as "Lessee"
WITNESSETH
WHEREAS, Lessor now owns, controls and operates the Mumc~pal A~rport (A~rport)
in the C~ty of Denton, County of Denton, State of Texas, and
WHEREAS, Lessee desires to lease certain premises on sa~d a~rport and construct
and maintain an a~roraft hangar and related awat~on fac~ht~es thereon, and
NOW, THEREFORE, for and ~n consIderation of the promises and the mutual
covenants contained m th~s Agreement, the part~es agree as follows
I ~{3NDITII3NR ~tF A~RFFMI~NT
NOTWITHSTANDING ANY LANGUAGE TO THE CONTRARY HEREINAFTER
CONTAINED, THE LANGUAGE IN PARAGRAPHS A THROUGH D OF THIS SECTION
SHALL BE BINDING
A pRIN~IPI I:R C)F ('3pI::RATIC)Nfi The nght to conduct aeronautical and related
actlwt~es for furnishing serwces to the pubhc ~s granted to Lessee subject to
Lessee agreeing
1 To furmsh sa~d services on a fair, equal and not unjustly d~scnm~natory bas~s
to all users thereof, and
2 To charge fair, reasonable and not unjustly d~scnm~natory pnces for each umt
or service, provided, that Lessee may be allowed to make reasonable and
nondiscnm~natory discounts, rebates, or other s~m~lar types of pnce
reductions to volume purchasers
B ~NC)N-131,~,(':-RIMINATIC)N Lessee, for h~mself, h~s personal representatives,
successors and ~nterests, and assigns, as a part of the consideration hereof,
does hereby covenant and agree as a covenant running w~th the land that
1 No person on the grounds of race, rehg~on, color, sex, or national ong~n shall
be excluded from participation in, den~ed the benefits of, or be otherwise
subjected to d~scrim~nat~on ~n the use of sa~d fac~ht~es,
2 In the construction of any ~mprovements on, over, or under such land and the
furmshlngs of services thereon, no person on the grounds of race, rehglon,
color, sex, or national ong~n shall be excluded from participation ~n, demed
the benefits of, or otherwise be subJected to d~scnm~nat~on,
3 Lessee shall use the premises ~n comphance w~th all other requirements
~mposed by or pursuant to Title 49, Code of Federal Regulations, Department
of Transportabon, Subtitle A, Office of the Secretary, Part 21, Nondiscrimi-
nation In Federally assisted programs of the Department of Transportation -
Effectual of T~tle VI of the C~wl R~ghts Act of 1964, as sa~d Regulations may
be amended
C RIGHT C,F INI31vIr3HAI R TO3 MAINTAIN AIRC:RAFT It ~S cleady understood by
Lessee that no right or pnwlege has been granted which would operate to prevent any
person, firm or corporation operating aircraft on the a~rport from performing any serwces
on ~ts own aircraft w~th ~ts own regular employees 0ncludlng, but not hm~ted to,
maintenance and repair) that it may choose to perform
D N~N-I=X~I IJ,~IVF: RIGHT It ~S understood and agreed that nothing hereto
contained shall be construed to grant or authonze the grant~ng of an exclusive nght w~thm
the meamng of T~tle 49 U S C Appendix {}1349
E pl.~RI lO. ARFA~
1 Lessor reserves the nght to further develop or ~mprove the landing area of the
a~rport as ~t sees fit, regardless of the desires or wews of Lessee, and w~thout
interference or hindrance
2 Lessor shall be obligated to maintain and keep ~n good repair the landing
area of the airport and all publicly owned faclht~es of the a~rport, together w~th
the nght to d~rect and control all act~wt~es of Lessee ~n th~s regard
3 Dunng 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 m~htary or naval use, and, ~f such lease ~s executed, the provisions of th~s
~nstrument ~nsofar as they are inconsistent w~th the prows~ons of the lease to
the Government, shall be suspended
4 Lessor reserves the right to take any acbon ~t considers necessary to protect
the aerial approaches of the a~rport against obstruction, together w~th the
right to prevent Lessee from erecting, or permitting to be erected, any
building or other structure on or adJacent to the airport which, ~n the op~mon
BRIDGES LAND LEASE 10-1 DOC- Page 2
of Lessor, would hm~t the usefulness or safety of the airport or constitute a
hazard to a~rcraff or to atmraff navigation
5, Th~s Lease shall be subordinate to the prows~ons of any existing or future
~ agreement between Lessor and the United States or agency thereof, relabve
to the operation or maintenance of the airport
Lessor, for and ~n consideration of the covenants and agreements hereto 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 ~ A tract of land, being approximately 2,790 square feet, or 0 064 acres,
drawn and outlined on Attachment "A" as Lot 10, and legally descnbed in Attachment "B,"
such attachments being incorporated herein by reference
Together w~th the right of ingress and egress to sa~d property, and the right ~n
common lw~th others so authorized of passage upon the A~rport property generally,
subject tO reasonable regulations by the C~ty of Denton and such nghts shall extend to
Lessee's, employees, passengers, patrons and mwtees For purposes of this agreement,
the term "Premises" shall mean all property located w~thm the metes and bounds
described and ident~fied w~th~n Attachment "B", ~nclud~ng leasehold ~mprovements con-
structed Iby the Lessee, but not ~ncludmg carta~n easements or property owned and/or
controlled by the Lessor
B i IMPROVFMI:NTR pF~C)VII3FI') RY I F.~ROR NONE There w~ll be no
~mprovements prowded by Lessor, except as set forth ~n Article II E "Access to Ut~ht~es"
below
For the purpose of th~s Agreement, the term "Lessor ~mprovements" shall mean
those th~ngs on or adjacent to the Premises belonging to, constructed by, or to be
constructed by the Lessor, which enhance or ~ncrease, the value or quality of the leased
land or property Unless otherwise noted here~n, all Lessor ~mprovements are and w~ll
remain the property of Lessor All Lessor ~mprovements must be descnbed m detail
above, or above referenced and attached to th~s Agreement ~n an exhibit approved by
Lessor
C IMPRC)VFMFNT.~ PRC)VIr31=l-) RY I F.q, RI:I::. On Lot 10, Lessee shall construct
a hangar/office faclhty not less than 1,800 square feet with taxlway access and
appropnate culverts or drainage as required by City ordinances in the utility right-of-way
north ol~ the proposed hangar as well as other ~mprovements as determined necessary by
City od:hnances Tax,way access shall be constructed to meet a 15,000-pound
continuous use weight beanng capacity Sa~d improvements shall be completed not less
than 365 days from the date of this agreement
BRID~ES LAND LEASE 10-1 DOC- Page 3
D EASEMEb[T~ Lessor and Lessee by mutual agreement may establish, on the
leased premises, easements for public access on reads and taxlways
E A~F:~.A TC) LITII ITII::.~_ Lessor represents that there are water and 3-phase
electricity hnes within three hundred feet (300') of the leased premises available to "tap-~n"
by Lessee, and that the same are sufficient for usual and customary serwce on the
leased premises
III TERM
The term of th~s Agreement shall be for a penod of thirty-years (30), commencing on
the sixth day of November 2001, and continuing through the fifth day of November 2031,
unless ead~er terminated under the provisions of the Agreement Any attempt by Lessee
to renegot~ate th~s Lease shall be ~n wntlng addressed to the C~ty Manager at least one
hundred e~ghty-days (180) before the expiration of the stated term of this lease, and at
least hundred e~ghty-days (180) days before the expiration of any additional renegot~ated
period Lessee has the option to renew for one (1) additional ten-year (10) term The
rental and terms to be negotiated shall be reasonable and consistent w~th the then value,
rentals and terms of similar property on the a~rport
IV PAYMENTS, RENTALS AND FEES
Lessee covenants and agrees to pay Lessor, as consideration for th~s lease, the
following payments, rentals and fees
A LAND RENTAL Lessee shall pay to the Lessor for the use and occupancy of the
Premises the sum of e~ght cents ($0 08) per square foot per year, for a total of
$223 20 per year and shall be due and payable in two equal ~nstallments in the
sum of ninety ($111 60) dollars each six months, with the first payment to be
made upon execution of this lease and the second payment due on or before
May 1, 2001 Thereafter, payments shall be due on October 1 and April I of
each year of the Lease
Notwithstanding the foregoing, the annual lease rental to be reduced by the current lease
rate per square foot, t~mes the number of square feet comprising all easements
established in accordance w~th Article II (D)
B I I:RR~R IMPR~VI:MF:IdT,~ RF:NTAI ,~ NONE There are no Lessor
~mprovements On the leased premises
pAyMFNT; PFNAI TY. AI').IIIRTMI::NTS All payments due Lessor from
Lessee shall be made to Lessor at the o11'ices of the Customer Serwce D~ws~on
of the City of Denton, 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-percent (5%) penalty w~ll be due as of the 16th If payments are
BRIDGES LAND LEASE 10-1 DOC- Page 4
not received by the 1st of the subsequent month, an additional penalty of one-
percent (1%) of the unpaid rental/fee amount will be due A one-percent (1%)
charge will be added on the 1st of each subsequent month until the unpaid
rental/fee payment ~s made Failure to pay the rent or penalty amounts on
delinquent rent shall constitute an event of default of th~s lease
The ~yearly rental for land and improvements herein leased shall be readjusted at
the end of each one-year (1) penod during the term of this lease on the bas~s of the
proportloq that the then current Umted States Consumer Pnce Index for all urban
consumem (CPI-U) for the Dallas-Fort Worth geographical region, as comp~led by the
U S Department of Labor, Bureau of Labor Statistics bears to the applicable index at the
execution, of th~s lease The original land rental amount is based upon the formulae set
forth ~n Section IV A for the land here~n leased Each rental adjustment, ~f any, shall
occur on the 1st day of November, beg~nmng 2002, and every year thereafter on such
date
The adjustments in the yeady rent shall be determined by multiplying the
minimum, yearly rent as set forth ~n Section IV A by a fracbon, the numerator of which is
the ~ndex number for the last month prior to the adjustment, and the denominator of
which is the index number applicable at the execubon of th~s lease If the product of
this mult~phcatlon ~s greater than the minimum yearly rent as set forth in Section IV A,
Lessee shall pay th~s greater amount as the yearly rent until the time of the next rental
adjustment as called for ~n this section If the product of this mult~phcat~on ~s less than
the m~mmum yearly rent of as set forth ~n Secbon IV A there shall be no adjustment ~n
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 ~n th~s section result ~n an annual rent less than the prewous
year's annual rent The adjustment shall be hm~ted so that the annual rental payment
determined for any g~ven year shall not exceed the annual rental payment calculated for
the previous year by more than ten-percent (10%)
If the consumer pnce index for all urban consumers (CPI-U) for the Dallas-Fort
Worth gf~ograph~cal region, as comp~led by the U S Department of Labor, Bureau of
Labor S~at~st~cs, is d~scontlnued dunng the term of th~s lease, the remaining rental
adjustments called for In th~s section shall be made using the formula set forth m
Subsection (a) above, but subsbtutlng the index numbers for the Consumer Pnce
Index-Seasonally Adjusted U S City Average For All Items For All Urban Consumers
(CPI-U) for the index numbers for the CPI-U apphcable 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 d~scont~nued dunng the term of th~s lease, the remaining rental
adjustments called for m th~s section shall be made using the statlsbcs of the Bureau of
Labor S~at~st~cs of the United States Department of Labor that are most nearly compara-
ble to tl~e CPI-U apphcable to the Dallas-Fort Worth geographical region If the Bureau of
Labor Statistics of the United States Department of Labor ceases to ex~st or ceases to
publish stattsbcs concerning the purchasing power of the consumer dollar dunng the term
of th~s lease, the rema~mng rental adjustments called for ~n th~s section shall be made
BRID~ES LAND LEASE 10-1 DOC- Page 5
using the most nearly comparable statistics pubhshed by a recognized flnancml authority
selected by Lessor
V, RIGHTS AND OBLIGATIONS OF LESSEE
A I,,IRF OF I I::ARFI') PRF:MI~:.'~ Lessee ~s granted the non-exclusive pnwlege to
engage in, or provide the following
1 I-I~n_n~r I ~-~.~ ~nd R~nt~l. The rental or lease of hangars and hangar
space and related fac~hties upon the leased premises
2 c)ffi¢.. R,n~.A I Am~. nr R~nt~l_ The rental or lease of office space in or
adjoining Lessee's hangars
3 Au333~D~a~:LS~ To provide storage of both Lessee's and sublessees'
a~mraft and aviation related equipment and supplies upon or w~th~n the
leased pram~ses
Lessee, hm tenants and sublessees shall not be authonzed to conduct any serwces
not specifically hsted in th~s agreement The use of the leased premises of Lessee, his
tenants or sublessees shall be bruited to only those pnvate, commercial, retail or ~ndustnal
act~wtles lhav~ng to do with or related to a~rports and aviation No person, business or
corporation may operate a commercial, retail or ~ndustnal bus~ness upon the premises of
Lessee or upon the A~rport w~thout a lease or hcense from Lessor authonz~ng such
commercial, retail or industrial activity The Lessor shall not unreasonably w~thhold
authonzatlon to conduct aeronautical or related services
B STANDARDA_ Lessee shall meet or exceed the following standards
1 ~,ddm..~_ Lessee shall file w~th the Airport Manager and keep current h~s
ma~hng addresses, telephone numbers and contacts where he can be
reached in an emergency
2 ! ~t. Lessee shall file w~th the A~rport Manager and keep current a list of his
tenants and sublessees
3 ~nnd~lc.t Lessee shall contractually require his employees and sublessees
(and sublessee's ~nv~tees) to ab~de by the terms of th~s agreement Lessee
shall promptly enforce h~s contractual nghts ~n the event of a default of such
covenants
4 I Ihlff~.~ T~y~ ~nrl I:~.~ Lessee shall meet all expenses and payments In
connection w~th the use of the Premises and the nghts and privileges here~n
granted, includ~ng the bmely payment of ut~htles, taxes, permit fees, hcense
fees and assessments lawfully lev~ed or assessed
BRIDGEB LA~D L~ABE 10-1 DOC- Page 6
5 I ~w. Lessee shall comply w~th ali current and future federal, state and local
laws, rules and regulations whmh may apply to the conduct of business
contemplated, ~nclud~ng rules, regulations and ordinances promulgated by
Lessor, and Lessee shall keep m effect and post in a prominent place all
necessary and/or required hcenses or permits
6 M~mf~nAn~.~ nf Prn.nAn"~. Lessee shall be responsible for the maintenance,
repair and upkeep of all property, buildings, structures and ~mprovements,
including the mowing or ehm~nat~on of grass and other vegetation on the
Premises, and shall keep said Premises neat, clean and in respectable
condition, free from any objectionable matter or th~ng Lessee agrees not to
utilize or permit others to utlhze areas on the leased premises which are
located on the outside of any hangar or building for the storage of wrecked
or permanently d~sabled a~mraft, a~rcraft parts, automobiles, vehicles of any
type, or any other equipment or ~tems which would d~stract from the
appearance of the leased premises Lessee agrees that at no t~me shall the
leased premises be used for a flea market type sales operation
7 Eat~ Dunng the ong~nal term of this Lease and during each
extension, Lessor shall have the nght to require, not more than once every
five years, that the metal extenor of hangar(s) or building(s) located on the
premises be rewewed by the A~rport Adwsory Board for the purpose of
determimng whether painting of the extenors of such buildings or hangars ~s
necessary If the A~rport Adwsory Board determines palnbng is necessary, ~t
shall furmsh a recommendation to th~s effect to the C~ty Council The
Council, may, upon the Board's recommendation, require Lessee to repaint
sa~d extenors according to Lessor's specifications (to specify color of paint,
quality of workmanship and the year and month ~n which the hangar(s) or
building(s) are to be painted, if needed ) Lessee shall complete the painting
~n accordance w~th such specifications w~th[n one-year (1) of receipt of not~ce
from Lessor Lessee agrees to pay all costs and expense revolved m the
hangar or building pa~nbng process Failure of Lessee to complete the
painting required by Lessor's C~ty Council w~th~n one-year (1) penod shall
constitute Lessee's default under this Lease
8 [ Jpnuthnr~7~d u.~ nf ,nr~m~.~R Lessee may not use any of the leased land
or premises for the operation of a motel, hotel, restaurant, pnvate club or
bar, apartment house, or for ~ndustnal, commercial or retail purposes, except
as authonzed here~n
9 ~w~lhno-~ It ~s expressly understood and agreed that no permanent
dwelhng or domtc~le may be built, moved to or established on or w~th~n the
leased premises nor may lessee, h~s tenants, ~nv~tees, or guests be perm~t-
ted to reside or remain as a resident on or w~th~n the leased premises or
other a~rport premises
BRIDGES LAND LEASE 10-1 DOC- Page
10 O~,,t pn.~.~.~(3n Lessee shall quit possession of all premises leased herein
at the end of the pnmary term of this lease or any renewal or extension
thereof, and dehver up the premises to Lessor ~n as good condition as
existed when possession was taken by Lessee, reasonable wear and tear
excepted
11 Hnld Hnrrnln~.~ Lessee shall ~ndemnlfy and hold harmless Lessor from and
against all loss and damages, includ~ng death, personal ~njury, loss of
property or other damages, ansmg or resulting from the operation of
Lessee's bus~ness ~n and upon the leased premises
12 Cbsmmats Lessee agrees to propedy store, collect and d~spose of all
chemicals and chemical residues, to propedy store, confine, collect and
d~spose of all paint, ~ncludlng paint spray ~n the atmosphere, and paint
products, and to comply with all Local, State and Federal regulations
governing the storage, handhng or disposal of such chemicals and paints
13 ~azerd~mLACm~as Should Lessee wolate any law, rule, restnct~on 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 ~n
activities whmh could produce hazards or obstruction to a~r nawgat~on,
obstructions to ws~b~hty or ~nterference with any aircraft nawgat~onal a~d station
or device, whether a~rborne or on the ground, then Lessor shall state such
violat~on ~n wnting and deliver wntten notice to Lessee or Lessee's agent on the
leased premises, or to the person(s) on the leased premises who are causing
sa~d v~olat~on(s), and upon delivery of such wntten not~ce, Lessor shall have the
nght to demand that the person(s) responsible for the wolat~on(s) cease and
desist from all such actlwty creating the violation(s) In such event, Lessor shall
have the nght to demand that corrective action, as required, be commenced
immediately to restore the leased premises ~nto conformance with the particular
law, rule or aeronautical regulation being wolated Should Lessee, Lessee's
agent, or the person(s) responsible for the wolatlon(s) fall to cease and desist
from sa~d wolat~on(s) and to immediately commence correcting the v~olat~on(s),
and to complete said corrections within twenty-four (24) hours following wntten
notification, then Lessor shall have the nght to enter onto the leased premises
and correct the violation(s), and Lessor shall not be responsible for any
damages ~ncurred to any ~mprovements on the leased premises as a result of
the correct~ve acbon process
D SI~N~ Dunng the term of thIs Agreement, Lessee shall have the nght, at ~ts
own expense, to place ~n or on the leased Premises s~gns ~dent~fy~ng Lessee SaId s~gns
shall be of a s~ze, shape and design, and at a location or locations, approved by the
Lessor and in conformance with any overall d~rect~onal graphics or s~gn program
estabhShed by Lessor for the Airport Lessor's approval shall not be w~thheld
unreasonably Sa~d s~gns shall be maintained m good repair throughout the term of th~s
agreement Notwithstanding any other prows~on of this agreement, said signs shall
BRIDGES LAND LEASE 10-1 DOC- Page 8
remain the property of Lessee Lessee shall remove, at ~ts expense, all lettenng, s~gns
and placards so erected on the premises at the exp~rebon of the term of th~s Agreement
or extensions thereof
VI COVENANTS BY LESSOR
Lessor hereby agrees as follows
A p~:A~FI:I II ~:N,I(3YblFNT 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 nghts and pnwleges here~n
granted,
B ~ Lessor warrants and represents that ~n the estabhshment,
construcbon and operabon of sa~d Denton Mumc~pal A~rport, that Lessor has heretofore
and at th~s time ~s complying with all ex,sting rules, regulations, and cntena d~stnbuted by
the Federal Aviation Administration, or any other governmental authonty relating to and
~nclud~ng, but not hm~ted to, no~se abatement, a~r nghts and easements over adjo~mng
and contiguous areas, over-flight ~n landing or takeoff, to the end that Lessee w~ll not be
legally hable for any action of trespass or s~m~lar cause of action by wrtue of any aerial
operations of adjoining property ~n the course of normal take-off and landing procedures
from sa~d Denton Mumc~pal A~rport, Lessor further warrants and represents that at all
t~mes dunng the term hereof, or any renewal or extension of same, that ~t w~ll continue to
comply w~th the foregoing
VII SPECIAL CONDITIONS
It ~s expressly understood and agreed by and between Lessor and Lessee that th~s
lease agreement ~s subject to the following special terms and cond~bons
A R[INWAV.~ ANr') TA×IWAY~ That because of the present fifteen thousand
(15,000) pound continuous use weight beanng capacity of the runway and tax,ways of the
A~rport, Lessee here~n agrees to hm~t all aeronaubcal act~wty including landing, take-off
and taxiing, to aircraft hawng an actual weight, ~nclud~ng the weight of ~ts fuel, of fifteen
thousand (15,000), until such t~me that the runway and designated tax,ways on the A~rport
have been ~mproved to handle a~roraft of such excessive weights It ~s further agreed
that, based on quahfied eng~neenng studies, the weight restnct~ons and prowslons of th~s
clause may be adjusted, up or down, and that Lessee agrees to ab~de by any such
changes or rews~ons as such studies may d~ctate "Aeronautical Actlwty" referred to in
this clause shall include that act~wty of the Lessee or its agents or subcontractors, and ~ts
customers and mwtees, but shall not ~nclude those actlwbes over which ~t has no sohc~tory
part or control, such as an unsolicited or unscheduled or emergency landing A pattern of
neghgent d~sregard of the provisions of th~s section shall be sufficient to cause the
~mmed~ate termination of th~s entire Agreement and subject Lessee to hab~hty for any
damages to the A~rport that m~ght result
BRIDGES L;%ND LEASE 10-1 DOC- Page 9
VIII. LEASEHOLD IMPROVEMENTS
A RFC~! Jll~l::tvlI=NT-~- Before commencing the construction of any ~mprovements
upon the premises, Lessee shall submit
1 Documentation, specifications, or design work, to be approved by the
Lessor, which shall establish that the ~mprovements to be budt or
constructed upon the leased premises are ~n conformance w~th the overall
s~ze, shape, color, quality and design, ~n appearance and structure of the
program estabhshed by Lessor on the A~rport
2 All plans and specifications show~ng the location upon the premises of the
proposed construction,
3 The estimated cost of such construcbon
No construction may commence until Lessor, acting by ~ts C~ty Council, has
approved the plans and specifications and the Iocabon of the ~mprovements, the
estimated costs of such construction and the agreed estimated hfe of the budding or
structure Approval by the C~ty Council shall not be unreasonably w~thheld, should the
Councd fall to deny Lessee's plans and specifications w~th~n s~xty (60) days of submission
thereof to the Council, such plans and specifications shall be deemed approved
Documentary ewdence of the actual cost of construction on public areas only (such as
tax,ways) shall be del~verad by Lessee to Lessor's C~ty Manager from t~me to brae as
such costs are paid by Lessee, and Lessor's C~ty Manager ~s hereby authorized to
endorse upon a copy of this lease filed w~th the C~ty Secretary of Lessor such actual
amounts as he shall have found to have been pa~d by Lessee, and the findings of the C~ty
Manager when endorsed by h~m upon said contract shall be conclusive upon all part~es
for all purposes of th~s agreement
B AI')I-)ITIdNAI ~C)N.e, TRII~TIdN dR IMPRdVFMFNT~ Lessee ~s 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 ~n connection w~th the operations authorized by this lease, prowded however,
before commenmng the construction of any ~mprovements upon the premises, Lessee
shall submit plans and specifications for approval by Lessor as specified ~n Article VIII A,
above
C dWNI~RgHIp dF IMPRdVFMFNTR All buildings and ~mprovements
constructed upon the premises by Lessee shall remain the property of Lessee unless sa~d
property becomes the property of Lessor under the follow~ng conditions, terms and
provisions
1 ~aD~aL~uJc~ No building or permanent fixture may be removed
from the pram~ses
BRIDGES LAND LEASE 10-1 DOC- Page 10
A~um.ntmn All buildings and improvements of whatever nature remaining
upon the leased premises at the end of the pnmary term, or any extension
thereof, of th~s lease shall automatically become the property of Lessor
absolutely ~n fee w~thout any cost to Lessor
F~"ld~n0 I ~fA It ~s agreed that the hfe of the building to be constructed by
Lessee on the property herein leased is thirty-years (30)
~n~.cdl~tlnn 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 tendenng to Lessee
one thirtieth (1/30) of the undepreclated value of such building for each year
remaining on the agreed life of such building The undepreclated value of all
~mprovements ts 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 ~nstltut~on that lends money to Lessee for
construcbon of any hangar, structure, building or ~mprovement and retains a security
~nterest m sa~d hangar, structure, budding or ~mprovement shall, upon default of
Lessee's obhgabons to said mortgagee, have the nght to enter upon sa~d leased
premises and operate or manage sa~d hangar, structure, budding or improvement
according to the terms of th~s 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 m no
event Iohger than the term of this lease It ts expressly understood and agreed that the
right of the mortgagee referred to here~n is hm~ted and restricted to those ~mprovements
constructed with funds borrowed from mortgagee, those ~mprovements 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 ~mprovements
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 faclhbes on the Airport How-
ever, any such easements shall not interfere w~th Lessee's use of the leased premises
and Lessor shall restore the property to original condition upon the ~nstallatlon of any
utility services on, in, over or under any such easement or the conclusion of such
BRID~ES LAND LEASE 10-1 DOC- Page 11
construction Construction ~n or at the easement shall be completed w~th~n a reasonable
t~me
Xl. ASSIGNMENT OF LEASE
Lessee expressly covenants that ~t w~ll not assign this lease, convey more than ten
percent (10%) of the interest ~n h~s business, through the sale of stock or otherwise,
transfer, license, nor sublet the whole or any part of the sa~d pram~ses for any purpose,
except for rental of hangar space or t~e-down space, w~thout the written consent of
Lessor Lessor agrees that ~t w~ll not unreasonably w~thhold ~ts approval of such sale,
sublease, transfer, hcense, or assignment of the fac~l~bes for the a~rport related purposes,
prowded however, that no such asstgnment, sublease, transfer, hcense, sale or otherwise
shall be approved ~f the rental, fees or payments, received or charged are ~n excess of the
rental or fees pa~d by Lessee to Lessor under the terms of this lease, for such port~on of
the premises proposed to be assigned, subleased, transferred, hcensed, or otherwise
The prowslons of th~s lease shall remain binding upon the assignees, ~f any, of Lessee
Xll INSURANCE
A RF(31JlRF:r3 INRtlRANCE Lessee shall maintain continuously ~n effect at all
times dunng the term of th~s agreement, at Lessee's expense, the following insurance
coverage
1 Comprehensive general hab~hty covenng the leased premises, the Lessee or
~ts company, ~ts personnel, and ~ts operations on the airport
2 A~rcraft hab~hty to cover all fl~ght operations of Lessee
3 F~ra and extended coverage for replacement value for all fac~htles used by the
Lessee e~ther as a part of th~s agreement or erected by the Lessee
subsequent to th~s agreement
4 L~ab~hty ~nsurence hm~ts shall be ~n the following m~mmum amounts
Bodtly Injury and Property Damage
One M~lhon Dollars ($1,000,000) combined single hmlts on a per occurrence
bas~s
5 All pohcles shall name the City of Denton as an add~bonal named ~nsurad and
prowde for a m~mmum of thirty-days (30) written notice to the City prior to the
effective date of any cancellation or lapse of such pohcy
6 All pohc~es must be approved by the Lessor
BRID~ES LAND LEASE 10-1 DOC- Page 12
7 The Lessor shall be provided with a copy of all such pohc~es and renewal
certificates
Dunng the term of this lease, Lessor here~n reserves the nght to adjust or ~ncrease
the hab~hty ~nsurance amounts required of the Lessee, and to require any additional rider,
provisions, or certificates of insurance, and Lessee hereby agrees to prowde any such
~nsurance requirements as may be required by Lessor, prowded however, that any
requirements shall be commensurate with insurance requirements at other public use
a~rports similar to the Denton Municipal A~rport ~n s~ze and m scope of aviation actlwt~es,
located ~n the southwestern region of the Umted States Lessee herein agrees to comply
with all ~ncreased or adjusted ~nsurance requirements that may be required by the Lessor
throughout the onglnal or extended term of th~s lease, ~ncludlng types of insurance and
monetary amounts or hm~ts of insurance, and to comply with sa~d insurance requirements
within sixty (60) days following the receipt of a notice in wnt~ng from Lessor stating the
~ncreased or adjusted ~nsurance requirements Lessee shall have the nght to maintain in
rome both types of insurance and amounts of insurance, which exceed Lessor's m~nlmum
~nsurance requirements
In the event that State law should be amended to require types of ~nsurance and/or
~nsurance amounts which exceed those of I~ke or s~m~lar pubhc use a~rports ~n the south-
western region of the Un~ted States of Amenca, then ~n such event, Lessor shall have the
right to require that Lessee maintain ~n force types of ~nsurance and/or amount of
~nsurance as specified by State law
Failure of Lessee to comply w~th the m~n[mum specified amounts or types of
insurance as required by Lessor shall constitute Lessee's default of th~s Lease
XlII CANCELLATION BY LESSOR
In the event that Lessee shall file a voluntary petition ~n bankruptcy or proceedings
~n bankruptcy shall be instituted against ~t and Lessee thereafter ~s adjudicated bankrupt
pursuant to such proceedings, or any court shall take junsd~ct~on of Lessee and ~ts assets
pursuant to proceedings brought under the prows~ons of any Federal reorgamzatlon act,
or Lessee shall be d~vestad of ~ts estate here~n by other operation of law, or Lessee shall
fa~l to perform, keep and observe any of the terms, covenants, or conditions hereto
contained, or on its part to be performed, the Lessor may g~ve Lessee wntten not~ce to
correct such condition or cure such default and, ~f any condition or default shall continue
for thirty (30) days after the receipt of such not~ce by Lessee, then Lessor may terminate
th~s lease by written not~ce to Lessee In the event of default, Lessor has the right to
purchase any or all structures on the leased premises under the prows~ons of Section VIII
Paragraph C 4 (Cancellation) hereof
BRIDGES LAND LEASE 10-1 DOC- Page 13
XlV. CANCELLATION BY LESSEE
Lessee may cancel th~s Agreement, in whole or part, and terminate all or any of ~ts
obhgatlons hereunder at any time, by thirty-days (30) wntten not~ce, upon or after the
happemng of any one of the following events (1) issuance by any court of competent
junsd~ctlon of a permanent ~njunctlon ~n any way preventing or restraining the use of sa~d
a~rport or,any part thereof for a~rport purposes, (2) the breach by Lessor of any of the
covenants or agreements contained hereto and the failure of Lessor to remedy such
breach for a period of ninety-days (90) after receipt of a written not~ce of the existence of
such breach, (3) the ~nablhty of Lessee to use sa~d premises and faclht~es continuing for a
longer period than mnety-days (90) due to any law or any order, rule or regulation of any
appropriate governmental authonty having junsdlct~on over the operations of Lessor or
due to war, earthquake or other casualty, or (4) the assumption or recapture by the
Umted States Government, or any authonzed agency thereof, of the maintenance and
operation of said a~rport and faclht~es or any substantial part or parts thereof
Upon the happemng of any of the four events hsted ~n the preceding paragraph,
such that the leased premises cannot be used for awat~on purposes, then the Lessee
may cancel th~s lease as aforesaid, or may elect to continue th~s lease under its terms,
except, however, that the use of the leased premises shall not be hm~ted to aviation
purposes, their use being only limited by such laws and ordinances as may be applicable
at that bme
XV. MISCELLANEOUS PROVISIONS
A FNTIRF: A~I=I::MI::NT Th~s Agreement constitutes the entire understanding
between the parties and as of its effective date supersedes all prior or ~ndependent
Agreements between the parties covenng the subject matter hereof Any change or
modification hereof shall be ~n wntlng s~gned by both part~es
B RINF')IN~ F:FFI=~T All covenants, stipulations and agreements herein shall
extend to, bind and ~nure to the benefit of the legal representatives, successors and
assigns,of the respective part~es hereto
C .~I::VFRARII ITY If a prows~on hereof shall be finally declared void or ~llegal by
any court or admimstrat~ve agency hawng junsd~ctlon, the entire Agreement shall not be
void, but the remaining prowslons shall continue in effect as nearly as possible ~n
accordance with the ong~nal ~ntent of the part~es
D, [~JCE Any not~ce g~ven by one party to the other ~n connecbon w~th th~s
agreement shall be ~n writing and shall be sent by registered mall, return receipt
requested, w~th postage and registration fees prepaid as follows
I If to Lessor, addressed to
City Manager
BRIDGES LAND LEAS~ 10-1 DOC- Page 14
City of Denton
215 E McKinney Street
Denton, Texas 76201
2 If to Lessee, addressed to
Mr PauIJ Bndges
2105 Acom Bend
Denton, Texas 76210
Notices shall be deemed to have been received on the date of receipt as shown on
the return receipt
E t:IEADINGS The headings used ~n th~s Agreement are intended for
convemence of reference only and do not define or hm~t the scope or meaning of any
prowslon of this Agreement
F ~c)V;=RklIN~ I AW Th~s Agreement ~s to be construed ~n accordance w~th the
laws of the State of Texas
G ~MFi'31ATIC)N Prior to ~nst~tubng suit ~n a court of competent jurisdiction, the
part~es shall, ~n good faith attempt to settle any controversy or claim by any party hereto
arising out of or relating to th~s Agreement by mediation m accordance w~th the laws and
rules, then obta~mng, of the State of Texas and the State Bar of Texas
H , NC) WAIVPR No waNer by Lessor or Lessee of any default or breach of
covenant or term of th~s lease may be treated as a waiver of any subsequent default or
breach of the same or any other covenant or term of th~s Agreement
I INI')I:PFNI')I=NT ~C)NTRA~.TC)R Dunng all braes that th~s Lease ~s ~n effect, the
pames agree that Lessee ~s and shall be deemed to be an ~ndependent contractor and
operator and not an agent or employee of the Lessor with respect to their acts or
omms~ons hereunder For all the purposes hereunder, Lessee ~s and shall be deemed an
~ndeper)dent contractor and ~t is mutually agreed that nothing contained herein shall be
deemed or construed to constitute a partnership or joint venture between the parties
IN WITNESS WHEREOF, the part~es have executed this Agreement as of the day
and year first above written
CITY OF DENTON, TEXAS, LESSOR
BY MIC~
~ N CI MANAGER
ATTEST
JENNIFER WALTERS, CITY SECRETARY
CITY OF DENTON, TEXAS
APPROVED AS TO LEGAL FORM
THE STATE OF TEXAS §
COUNTY OF DENTON §
This instrument was acknowledged before me on the l ~r'~day of
2001 by Lessee
NOTARY PUBLIC M
~ ~ STATE OF TE~S ~ ~O~Y PUBLIC, STATE OF TE~S
My Commission Expires ~_~)-~
BRIDGES I~AND LEASE 10-1 DOC- Page 16
"ATTACHMENT A"
DSSCRI°TION
0 06 ACRE
S 88'55'12" E --e LOttO
,
\o
o \% o
~Ei~N ETH A~LLIN,
1" = 50' ~
LOCKHEA~ LANE (Posted)
~ ~ I/2" IRF ~ent 1/2" IRF Bent~
T~ ~ - Os,.~7'w~,~- 9'17"E 62 00' ,~s, ~
"ATTACHMENT B"
DESCRIPTION
0 06 ACRE
LOT 10
FIELD NOTES to al~ that certam lot tract or parcel o~land sduated in the WILLIAM NElL Sur~ e~ Abstract Number 970 City of Denton Denton Coanty Texas and
being a pair of Lot ~ Block 1 of SOutheast A~rport Adddlon an Addition an Adddmn to the Cd~ of Denton Denton County Texas as recorded m Caomet C ~age 2~5 of
THENCE No~h 88 Degrees 19 MJnmes 17 Seconds West with the South hne of the hereto descnbed tract e dmmnce of 62 00 to a 1/2 tach capped iron rod found for
THENCE No~h 01 Degrees 19 Mmutes 29 Se~nds East with the East line of smd lot 9 passmg at dmtance of 7 72 feet a bent 1/2 ~nch ~pped iron rod found and
THIS SURVEY HAS BEEN PREPARED WiTH THE EXCEPTION OF A TITLE REPORT OR SCHEDULE A & B.
FLOOD S~ATEMENT I have examm~d the F E M A Flood Insurance Rate Map for Den on County Texas Commundy Number 480774 effective date 03 3~98 and
of smd map
LEGEND
/g9'2,
,2 00' ?s/cop...... .RE
--2--" WOOD
:
~ ~ KRUg, TX 76~49
o (940)~82-67~3
~ ,
, ~OB NUMBER
2 00' ms/cop ; D~AWN BY RB
CnBCKBg BY KAZ
lANCE DATE 9-27-01 .....
· ' REV[SI0NS ./~7/m A~.~d
URVEYING