1999-468AN ORDINANCE AUTHORIZING THE THIRD AMENDMENT TO AIRPORT LEASE
AGREEMENT FOR FIXED BASE OPERATION (FBO) ACTIVITY BETWEEN THE CITY
OF DENTON AND TEXAS AIR CENTER, INC, AND PROVIDING FOR AN EFFECTIVE
DATE
WHEREAS, certain real property upon the Denton Municipal Airport was leased to
Texas Air Center, Ine, a Texas Corporation, by an Airport Lease Agreement for FBO Activity
effective August 30, 1988 and amended on June 7, 1994 and October 6, 1998, and
WHEREAS, the City of Denton and the lessee desare to amend the lease agreement again
in accordance with Section H of Artlale IV of the Restated Lease of November 15, 1988, and
WHEREAS, the Airport Advisory Board for the Caty of Denton has recommended
approval of the Tbard Amendment, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
~ That the attached Tlurd Amendment to Aarport Lease Agreement for FBO
Activity between the City of Denton and Texas Air Center, Inc as approved
SECTION 2 That the City Manager is authorized to execute the attached lease
amendment on behalf of the City and the C~ty Secretary is d~rected to affix this ordinance with
the executed lease amendment to the Airport Lease Agreement for FBO Activity effective
August 30, 1988, mscnbmg on the original agreement the fact it has been amended and the
effective date of this tlurd amendment
~ That this ordinance shall become effective immediately upon its passage
and approval
PASSED AND APPROVED thls the ~ dayof ~~ ,1999
JA~
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
THIRD AMENDMENT TO AIRPORT LEASE AGREEMENT FOR
FIXED BASE OPERATING ACTIVITY BETWEEN
CITY OF DENTON AND TEXAS AIR CENTER, INC.
STATE OF TEXAS §
COUNTY OF DENTON §
WHEREAS, the Tinrd Amendment to A~rport Lease Agreement For Fixed Base
Operating (FBO) Activity ("Amendment") is entered into by and between the City of Denton
("Lessor") and Texas Air Center, Inc (formerly Air Denton, Inc ) ("Lessee")
WHEREAS, on or about August 30, 1988, a lease agreement for FBO Activity ("Airport
Lease") by and between the Lessor and Lessee became effective, and
WHEREAS, Lessee and Lessor Restated lease on November 15, 1988 and Lessee and
Lessor first amended the gnrport Lease on June 7, 1994, adopted a Second Amendment on
October 6, 1998 and now desire to amend the Airport Lease agmn in order to comply with
Section H of Article V of the Restated Lease regarding operations of the City's fuel farm at the
mrport, and
WHEREAS, this Third Amendment will also provide that tenants at the mrport selling
fuel are treated m a non-discriminatory manner,
NOW, THEREFORE, in consideration of the mutual promises and agreements contained
in this Amendment, including the recitals set forth above, the parties agree as follows
1 That Article III, Section C of the Airport Lease as previously amended relating to
"Fuel Fees" is hereby amended by repealing such Section C and in lieu thereof
adchng the terms and conditions set forth in the Letter dated November 17, 1999
to the attention of Jim Huff from Mark Nelson identified as Exhibit "A", which is
attached hereto and made a part hereof for all purposes
2 Tins Tinrd Amendment is intended to amend the provisions of the gnrport Lease
and the First and Second Amendments thereto only to the extent expressly set
forth above All of the terms, covenants, provisions, and conditions set forth in
the Airport Lease and First Amendment and Second Amendment are ratified and
confirmed except as expressly modified by tins Third Amendment This
Agreement shall be bmdlng upon and shall inure to the benefit of the respective
successors and asmgus of Lessor and Lessee
Page 1 of 2
~C~IN WITNESS WHEREOF, the parties have executed this Thtrd Amendment as of the
dayof ._,~d~P/')'l.~(4/I , 1999
CITY OF DENTON, LESSOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
TEXAS MrlI t~, INC, LESSEE
THE STATE OF TEXAS §
COUNTY OF DENTON §
Thts instrument was acknowledged before me on this the ,~..,a[ day of__~~
1999 by James W Huff, Jr
Il '~1//.~""' ...... - a. 1,,.03 /I ~ ~'~ N°~a~Y ~ubhc,~ t ~'[~ ~f ~[~-- '
Commlss,on Etplms ~]1~ JO~
Page 2 of 2
EXHIBII. _,,,..
CITY OF DENTON, TEXAS
DENTON MUNICIP,4L AIRPORT
TERMIN.4 L ,B UIL D.,r ~\ G
November 17, 1999 $O00AIRPO~TJVO
DENTON, TX 76207
Mr Jim Huff, President
Texas A~r Center, Inc
5007 Airport Road
Denton, Texas 76207
Dear Mr Huff
This letter ~s a follow up to our phone conversation on November, 9 concermng negottatlons on the
operatmn of the above ground fuel system and the adjustment of your fuel flowage fee
Pursuant to our agreement of May 1998, the lease agreement between the C~ty of Denton and Texas
A~r Center, Inc will be amended to reflect the negotiated fuel flowage rate and operating
responsibilities of the new fueling system The ~ntent of the fullow~ng agreements will be made to
the appropriate sections of your lease
Texas A~r Center will have the right of ~ngress and egress and use of the fueling system
through August 30, 2019 Texas Air Center will ensure that the fuel level m any tank shall
not fall below 2,000 gallons for more than sixty (60) days Ifth~s should occur, the Qty may
take over use of smd tank, upon reimbursement for the wholesale cost of fuel then m the
tank
The fueling system shall be operated in comphance with all federal, state, and local
regulations
Begum~ng January I, 2000 Texas A~r Center shall pay the City of Denton slx percent (6%)
of the wholesale price per gallon of fuel dehvered to Texas A~r Center Commencing
September 1, 2009 and continuing through August 30, 2019, Texas A~r Center shall pay the
City of Denton 7% of the wholesale price per gallon of all fuel delivered to the Lessee
Texas Au' Center will ensure that the faclhty will be mamtmned m a safe, clean and attractive
condition Texas A~r Center shall be responsible for all general maintenance of said fuel
farm including, but not hmlted to replacement of fuel filters and hoses, repair and general
maintenance of plpmg and electncal service, repmr and general mmntenance of pumps,
recharge of fire extmgmshers, grass cutting, repairs to perimeter fencing, trash collection and
removal
Telephones (940) 349-7736 or 349-7702
Far (940) 383-7289
Web Address. http.//www, dentonatrport com
"Dedwated to Quahty Serwce"
The City of Denton shall be responsible for the replacement of fuel pumps and piping when
required due to normal wear and tear Texas Air Center shall be responsible for the
replacement of fuel pumps if it is determined that Texas Air Center's employees or
representatives acted in negligence
The City of Denton shall be responsible for reg~stratlon fees as reqmred by Federal or State
agencies The City of Denton shall be responsible for the calibration of meters as required
by Federal or State regulations
The City of Denton shall reserve adequate land to provide for the future expansion of said
fueling system to an aggregate capacity of 40,000 gallons
Please review these proposed amendments to ensure that there is no misunderstanding concemmg
the rights and obhgatlons of Texas 3ar Center, Inc and the City of Denton This information has
been submitted to the City Attorney's office for final review The amendment IS scheduled for City
Council consideration on Tuesday, December 7, 1999 Should you have any questions, please do
not hesitate to contact me at 349-7702
Sincerely,
Mark Nelson
Airport Manager
PC Mark Huff, Operations Manager, Texas Air Center
Linda Rathff, Director of Eeonorme Development