1999-054AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE AN AIRPORT
LEASE AGREEMENT BETWEEN THE CITY OF DENTON AND DOUGLAS C WEYER
TO LEASE CERTAIN PREMISES OF THE MUNICIPAL AIRPORT FOR THE PURPOSE OF
CONSTRUCTING AND MAINTAINING OFFICE AND HANGAR FACILITIES THEREON,
AND PROVIDING AN EFFECTIVE DATE
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
~ That the C~ty Manager xs authorized to execute an mrport lease agreement
between the City of Denton, Texas and Douglas C Weyer, to lease certmn premises of the
Mumcxpal Airport for the purposes of and constructing and maxntmmng an office and hangar
factht~es thereon, under the terms and cond~txons contmned w~th~n th~s Agreement, which ~s
attached hereto and made a part hereof
~ That th~s ordinance shall become effechve ~mmedmtely upon ~ts passage
and approval
PASSED AND APPROVED flus the /b ~ day of ~ , 1999
JAylLLER, MAYOR
ATTEST'
JENNIFER WALTERS, CITY SECRETARY
APPRO~D AS TO LE-GAL FORM
HERBERT L PROUTY, CITY ATTORNEY
AIRPORT LEASE AGREEMENT
COMMERCIAL OPERATOR
THE STATE OF TEXAS §
§ KNOW ALL MEN BY THESE PRESENTS
COUNTY OF DENTON §
Thls lease is made and executed this /~ day of ~
1999, at Denton, Texas, by and between the City of Denton,:xas. - -Texas,~_/ -
a municipal corporation, hereinafter referred to as "Lessor", ar~
Douglas C Weyer, having his principal offices at P 0 Box 1322,
Lake Dallas, Texas 75065, hereinafter referred to as "Lessee"
WITNESSETH:
WHEREAS, Lessor now owns, controls and operates the Municipal
A~rport (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
I. CONDITIONS OF AGREEMENT
NOTWITHSTANDING ANY LANGUAGE TO THE CONTRARY HEREINAFTER
CONTAINED, THE LANGUAGE IN PARAGRAPHS A THROUGH D OF THIS SECTION
SHALL BE BINDING
A PRINCIPLES OF OPERATIONS The r~ght to conduct
aeronautical 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
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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 ~n compliance w~th 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 Tltle 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 r~ght 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 ~ts own regular employees
(~nclud~ng, but not limited to, maintenance and repair) that it
may choose to perform
D NON-EXCLUSIVE RIGHT It ~s understood and agreed that
nothing herein contained shall be construed to grant or authorize
the granting of an exclusive right within the meaning of Title 49
U S C Appendix §1349
E PUBLIC AREAS
1 Lessor reserves the right to further develop or improve
the landing area of the a~rport as it sees f~t,
regardless of the desires or views of Lessee, and
without interference or h~ndrance
2 Lessor shall be obligated to maintain and keep in good
repair the landing area of the a~rport and all publicly
owned facilities of the airport, together with the right
to direct and control all activities of Lessee ~n th~s
regard
3 During time of war or national emergency, Lessor shall
have the right to lease the landing area or any part
thereof to the United States Government for military or
naval use, and, if such lease is executed, the
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provlsaons of thas anstrument ansofar as they are
anconsastent with the provaslons of the lease to the
Government, shall be suspended
4 Lessor reserves the raght to take any actaon at
consaders necessary to protect the aeraal approaches of
the airport against obstruction, together wath the right
to prevent Lessee from erectang, or permattang to be
erected, any bualdlng or other structure on or adjacent
to the aarport whach, an the opanaon of Lessor, would
lamat the usefulness or safety of the aarport or
constitute a hazard to aarcraft or to aarcraft
navigataon
5 Thas Lease shall be subordanate to the provaslons of any
exastang or future agreement between Lessor and the
Unated States or agency thereof, relatave to the
operataon or maantenance of the aarport
II. LEASED PREMISES
Lessor, for and an consaderatlon of the covenants and
agreements herean contaaned, to be kept by Lessee, does hereby
demase and lease unto Lessee, and Lessee does hereby hare and take
from Lessor, the followang described land satuated an Denton
County, Texas
A LAND A tract of land, beang approxamately 15,235 square
feet, or 0 350 acres, drawn and outlined on Attachment "A" as
Tract A, and legally described in Attachment "B", such attachments
beang ancorporated herean by reference
Together wath the raght of angress and egress to saad proper-
ty, and the right an common wath others so authorazed of passage
upon the Aarport property generally, subject to reasonable
regulataons by the Caty of Denton and such raghts shall extend to
Lessee's employees, passengers, patrons and lnvltees For
purposes of thas agreement, the term "Premases" shall mean all
property located within the metes and bounds descrabed and
ldentafled wathln Attachment "B", ancludang leasehold improvements
constructed by the Lessee, but not lncludang certaan easements or
property owned and/or controlled by the Lessor
B IMPROVEMENTS PROVIDED BY LESSOR Lessor agrees to
provade, at Lessor's sole cost and expense, pavement
rehabalatatlon of ~Taxaway J2" Rehabll~tataon shall consast of
at least two (2) anches of asphalt overlay
For the purpose of thas Agreement, the term "Lessor amprove-
ments" shall mean those thangs on or adjacent to the Premases
belonging to, constructed by, or to be constructed by the Lessor,
which enhance or ancrease, the value or qualaty of the leased land
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or property Unless otherwise noted herein, all Lessor
improvements are and wall 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 IMPROVEMENTS PROVIDED BY LESSEE On said lot, Lessee
shall construct a T-hangar and office facility not less than
13,000 square feet with taxlway access (stubs) and appropriate
culverts or drainage as required by City ordinances in the utility
right of way north and south of the proposed hangar as well as
other mmprovements as shown on the site plan attached hereto and
made a part hereof for all purposes and identified as Attachment
"D" Lessee shall also construct an access taxlway, north of the
proposed T-hangar, connecting the development to Taxlway J Said
taxlway shall be constructed of concrete and meet a weight bearing
capacity of at least 15,000 pounds
Lessor agrees that Lessee may deny access to the proposed
taxlway Lessee constructs pursuant to this Lease to the tenants,
their lnvltees, and customers (tenants), of the property directly
across from Lessee's tracts under this Lease However, Lessee
shall provide access to the taxlway being constructed per this
lease to the tenant(s) across from Lessee's tract ~f such tenants
agree to pay to Lessee an assessment for use of such taxlway in
the amount of 50% of the certified costs (as mutually determined
by Lessee and Lessor after completion of taxlway improvements and
including Interest on such costs) of the construction of such
taxlway based on a front footage charge as used in City of Denton
Street Paving Pro3ects
D EASEMENTS Lessor and Lessee by mutual agreement may
establish, on the leased premises, easements for public access on
roads and tax,ways
E ACCESS TO UTILITIES Lessor represents that there are
water and 3-phase electricity lines within three hundred feet
(300') 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
III. TERM
The term of this Agreement shall be for a period of thirty
(30) years, commencing on the 15th day of February, 1999, and
continuing through the 14~n day of February, 2029, unless earlier
terminated under the provisions of the Agreement Any attempt by
Lessee to renegot~ate this Lease shall be ~n writing addressed to
the City Manager 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 renegotlated period
Lessee has the option to renew for two (2) additional ten (10)
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year terms The rental and terms to be negotiated shall be
reasonable and consistent with the then value, rentals and terms
of slm~lar property on the a~rport
IV. PAlmiSTS, RENTALS AND FEES
Lessee covenants and agrees to pay Lessor, as consideration
for this 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 eight cents ($0 08) per
square foot per year, for a total of $1,218 80 per year and shall
be due and payable ~n twelve (12) equal monthly ~nstallments ~n
the sum in advance, on or before the 15th day of each and every
month during the term of this agreement Lessee may have the
option to pay annual rentals and fees in whole on or before the
1Bth day of October each and every year of th~s lease
Notw~thstandlng 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 with Article II(D)
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 C~ty of Denton, Accounts Receivable, 215 E
McKlnney, 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 w~ll 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 constltute an event of default of th~s lease
The yearly rental for land and ~mprovements here~n leased
shall be readjusted at the end of each one (1) year period during
the term of this lease on the basls of the proportion that the
then current Un,ted 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 executlon 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 ad3ustment, if any, shall occur on the 15th day of
February, beginning 2000, and every year thereafter on such date
The ad]ustments in the yearly rent shall be determIned by
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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 ~n 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 multlpllcataon as less than the mlnlmum yearly rent of as
set forth in Section IV A , there shall be no ad3ustment an 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 sectaon In no event shall any rental
ad3ustment called for an this section result in an annual rent
less than the previous year's annual rent The adjustment shall
be llmated so that the annual rental payment determaned for any
gaven year shall not exceed the annual rental payment calculated
for the previous year by more than ten (10) 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
dlscontanued 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 ~ndex 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
dlscontanued durang 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 usang 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-
exclusave 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
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2 Office Space Lease or Rental The rental or lease of
office space in or adjoining Lessee's hangars
3 Aircraft and Storage To provide storage of both
Lessee's and sublessee's aircraft and aviation related
equipment and supplies upon or w~thln the leased
premises
Lessee, h~s tenants and sublessees shall not be authorized to
conduct any services not specifically listed ~n this agreement
The use of the leased premises of Lessee, his tenants or
sublessees shall be limited to only those private, commercIal,
retail or ~ndustrlal actlvlt~es having to do w~th or related to
airports and aviation No person, bus~ness 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
authormzatlon to conduct aeronautical or related services
B STANDARDS Lessee shall meet or exceed the following
standards
1 Address Lessee shall f~le w~th 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
ke--~current a list of h~s tenants and sublessees
3 Conduct Lessee shall contractually require h~s
employees and sublessees (and sublessee's lnvltees) to
abide by the terms of this agreement Lessee shall
promptly enforce h~s contractual rights in the event of a
default of such covenants
4 Utllltles~ Taxes and Fees Lessee shall meet all expen-
ses and payments in connection w~th the use of the Premi-
ses 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,
~ncludlng rules, regulations and ordinances promulgated
by Lessor, and Lessee shall keep ~n effect and post in a
prominent place all necessary and/or required licenses or
permits
6 Maintenance of Property Lessee shall be responsible for
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the mamntenance, repamr and upkeep of all property,
bumldlngs, structures and mmprovements, ~ncludmng the
mowmng or elmmmnatmon of grass and other vegetatmon on
the Premmses, and shall keep samd Premmses neat, clean
and mn respectable condmtmon, free from any ob]ectmonable
matter or thmng Lessee shall be responsmble for the
mamntenance of all new hangar taxmway stubs, connectmng
the Hangar to Taxmway J2 on the south and the proposed
publmc taxmway located north of the T-hangar development
Lessee agrees not to utmlmze or permmt others to utmlmze
areas on the leased premmses whmch are located on the
outsmde of any hangar or bumldmng for the storage of
wrecked or permanently dmsabled amrcraft, amrcraft parts,
automobmles, vehmcles of any type, or any other equmpment
or mtems whmch would dmstract from the appearance of the
leased premmses Lessee agrees that at no tmme shall the
leased premmses be used for a flea market type sales
operatmon
7 Pamntmn~ of Bumldmn~s Durmng the ormgmnal term of thms
Lease and during each extensmon, Lessor shall have the
rmght to requmre, not more than once every fmve years,
that the metal extermor of hangar(s) or bumldmng(s)
located on the premmses be revmewed by the Amrport
Advmsory Board for the purpose of determmnmng whether
pamntmng of the extermors of such bumldmngs or hangars ms
necessary If the Amrport Advmsory Board determmnes
pamntmng ms necessary, at shall furnmsh a recommendatmon
to thms effect to the Cmty Councml The Councml, may,
upon the Board's recommendatmon, requmre Lessee to
repamnt samd extermors accordmng to Lessors
specmfmcatmons (to specmfy color of pamnt, qualmty of
workmanshmp and the year and month mn whmch the hangar(s)
or bumldmng(s) are to be pamnted, mf needed ) Lessee
shall complete the pamntmng an accordance wmth such
specmfmcatmons wmthmn one (1) year of recempt of notice
from lessor Lessee agrees to pay all costs and expense
mnvolved mn the hangar or bulldmng pamntmng process
Famlure of Lessee to complete the pamntmng requmred by
Lessor's Cmty Councml wmthmn one (1) year permod shall
constmtute Lessee's default under thms Lease
8 Unauthormzed use of ~remmses Lessee may not use any of
the leased land or premmses for the operatmon of a motel,
hotel, restaurant, prmvate club or bar, apartment house,
or for mndustrmal, commercial or retaml purposes, except
as authormzed heremn
9 Dwellmn~s It Ks expressly understood and agreed that no
permanent dwellmng or dommcmle may be bumlt, moved to or
establmshed on or wmthmn the leased premmses nor may
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lessee, his tenants, lnvltees, or guests be permitted to
reside or remain as a resident on or within the leased
premises or other airport premises
10 Quit Possession Lessee shall quit possession of all
premises leased herein at the end of the primary term of
this lease or any renewal or extension thereof, and
deliver up the premises to Lessor in as good condition as
existed when possession was taken by Lessee, reasonable
wear and tear excepted
11 Mold Marmless Lessee shall indemnify and hold harmless
Lessor from and against all loss and damages, including
death, personal injury, 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
paznt, including palnt 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
v~olatlon(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)
fall 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
Page 9 of 18
any damages incurred to any improvements on the leased
premises as a result of the corrective action process
D SIGNS During the term of this Agreement, Lessee shall
have theft, 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 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
malnta~ned ~n good repair throughout the term of this agreement
Notwlthstand~ng any other provision of this agreement, said s~gns
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
extenszons 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 en3oy
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 Munlc~pal
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 ad]olnlng
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 w~th
the foregoing
VII. SPECIA~ CONDITIONS
It ~s expressly understood and agreed by and between Lessor
and Lessee that this lease agreement is subject to the following
special terms and cond~tlons
A RUNWAYS AND TAXIWAYS That because of the present sixty
thousand (60,000) pound continuous use weight bearing capacity of
the r~nway and certain tax,ways of the Airport, Lessee here~n
agrees to limit all aeronautical activity including landing, take-
off and taxiing, to aircraft having an actual weight, including
Page 10 of 18
the weight of its fuel, of sixty thousand (60,000) pounds or less,
until such time that the runway and designated taxlways on the
Airport have been improved to handle aircraft of such excessive
weights Additionally, the weight bearing capacity of the access
taxlway adjacent to the leased premises is fifteen (15) thousand
(15,000) pounds It is further agreed that, based on qualified
engineering studies, the weight restrictions and provisions of
this clause may be ad3usted, up or down, and that Lessee agrees to
abide by any such changes or revisions as such studies may
dictate "Aeronautical Activity" referred to in this clause shall
include that actlvlty of the Lessee or its agents or
subcontractors, and Its customers and lnvltees, but shall not
include those activities over which it has no sollcltory part or
control, such as an unsolicited or unscheduled or emergency
landing A pattern of negligent disregard of the provisions of
this sectzon shall be sufficient to cause the immediate
termlnatlon of this entzre Agreement and subject Lessee to
llabllzty 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 Ail 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 fall to deny Lessee's plans and
specifications within sixty (60) days of submission thereof to the
Council, such plans and specifications shall be deemed approved
Documentary evidence of the actual cost of construction on public
areas only (such as taxlways) shall be delivered by Lessee to
Lessor's City Manager from time to time as such costs are paid by
Lessee, and Lessor's City Manager 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
page 11 of 18
purposes of thms agreement
B ADDITIONAL CONSTRUCTION OR IMPROVEMENTS Lessee ms
hereby authorized to construct upon the land herein leased, at hms
own cost and expense, bumldmngs, hangars, and structures, that
Lessor and Lessee mutually agree are necessary or desmrable for
use mn connection wmth the operatmons authormzed by thms lease,
provmded however, before commencmng the construction of any
mmprovements upon the premmses, Lessee shall submmt plans and
specmflcatmons for approval by Lessor as specmfmed mn Article
VIII A , above
C OWNERSHIP OF IMPROVEMENTS All bumldmngs and
mmprovements constructed upon the premises by Lessee shall remamn
the property of Lessee unless said property becomes the property
of Lessor under the followmng condltmons, terms and provmsmons
1 Removal of Bumldmn~s No bumldmng or permanent fmxture
may be removed from the premmses
2 Assumptmon All bumldmngs and mmprovements of whatever
nature remamnmng upon the leased premmses at the end of
the prmmary term, or any extensmon thereof, of thms lease
shall automatmcally become the property of Lessor
absolutely mn fee without any cost to Lessor
3 Bumldln~ Lmfe It ms agreed that the l~fe of the
building to be constructed by Lessee on the property
hereln leased ms thirty (30) years
4 Cancellatmon Should thms lease be cancelled for any
reason before the end of the thmrty (30) year expected
bumldlng lmfe, mt ms especially understood and agreed
that Lessor reserves the rmght to purchase all bumldmngs,
structures and improvements then exmstmng upon the
premmses by tendermng to Lessee one thmrtmeth (1/30) of
the undepreclated value of such bumldmng for each year
remamnlng on the agreed lmfe of such bumldmng The
undeprecmated value of all mmprovements ms to be
determined by havmng such mmprovements appramsed by three
appramsers, one appomnted by Lessor, one appomnted by
Lessee and one appomnted by the two appramsers
IX. SUBROGATION OF MORTGAGEE
A Any person, corporatmon or mnstmtutmon that lends money
to Lessee for construction of any hangar, structure, bumldmng or
improvement and retamns a securmty mnterest mn samd hangar,
structure, bumldmng or improvement shall, upon default of
Lessee's oblmgatmons to samd mortgagee, have the rmght to enter
upon samd leased premises and operate or manage said hangar,
Page 12 of 18
structure, bulldln9 or improvement according to the terms of this
Agreement, for a period not to exceed the term of the mortgage
with Lessee, or until the loan is paid in full, whichever comes
first, but in no event longer than the 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 ~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
airport property or for the construction of public facilities on
the Airport However, any such easements shall not ~nterfere
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 (10%) 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
· f 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
an effect at all times during the term of th~s agreement, at
Page 13 of 18
Lessee's expense, the following insurance coverage
1 Comprehensive general liability covering the leased
premlses, the Lessee or its company, its personnel, and
· ts operations on the airport
2 A~rcraft liability to cover all flight operations of
Lessee
3 Fire and extended coverage for replacement value for all
facilities used by the Lessee elther as a part of this
agreement or erected by the Lessee subsequent to th~s
agreement
4 L~ablllty insurance limits shall be in the following
m~nlmum amounts
Bodily Injury and Property Damage
One M~lllon Dollars ($1,000,000) combined single limits
on a per occurrence basis
5 All policies shall name the City of Denton as an
additional named ~nsured and provide for a mlnlmum of
thirty (30) days written notice to the C~ty prior to the
effective date of any cancellation or lapse of such
policy
6 All pol~cles 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 1ncrease 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-
rate with insurance requlrements at other public use airports
similar to the Denton Municipal A~rport in s~ze and in scope of
aviation actlvltles, located in the southwestern region of the
United States Lessee here~n 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 w~th sa~d 1nsurance requirements w~thln
sixty (60) days following the receipt of a notice in writing from
Lessor stating the increased or adjusted insurance requirements
Lessee shall have the r~ght to maintain 1n force both types of
insurance and amounts of insurance which exceed Lessor's minimum
insurance requirements
Page 14 of 18
In the event that State law should be amended to require types
of insurance and/or insurance amounts which exceed those of like
or similar public use airports in the southwestern region of the
United States of America, then in such event, Lessor shall have
the right to require that Lessee maintain in force types of
insurance and/or amount of insurance as specified by State law
Failure of Lessee to comply with the minimum specified amounts
or types of Insurance as required by Lessor shall constitute
Lessee's default of this Lease
XIII. CANCELLATION BY LESSOR
In the event that Lessee shall file a voluntary petition in
bankruptcy or proceedings in bankruptcy shall be Instituted
against it and Lessee thereafter is adjudicated bankrupt pursuant
to such proceedings, or any court shall take ~urlsdictlon of
Lessee and 1ts assets pursuant to proceedings brought under the
provisions of any Federal reorganization act, or Lessee shall be
divested of 1ts estate herein by other operation of law, or Lessee
shall fail to perform, keep and observe any of the terms,
covenants, or conditions herein contained, or on its part to be
performed, the Lessor may give Lessee written notice to correct
such condition or cure such default and, if any condition or
default shall continue for thirty (30) days after the receipt of
such notice by Lessee, then Lessor may terminate this lease by
written notice to Lessee In the event of default, Lessor has the
right to purchase any or all structures on the leased premises
under the provisions of Section VIII Paragraph C 4 (Cancellation)
hereof
XIV. CANCELLATION BY LESSEE
Lessee may cancel this Agreement, in whole or part, and
terminate all or any of its obligations hereunder at any time, by
thirty (30) days written notice, upon or after the happening of
any one of the following events (1) issuance by any court of
competent jurisdiction of a permanent in]unction in any way
preventing or restraining the use of said airport or any part
thereof for airport purposes, (2) the breach by Lessor of any of
the covenants or agreements contained herein and the failure of
Lessor to remedy such breach for a period of ninety (90) days
after receipt of a written notice of the existence of such breach,
(3) the inability of Lessee to use said premises and facilities
continuing for a longer period than ninety (90) days due to any
law or any order, rule or regulation of any appropriate
governmental authority having ]urlsdlctlon over the operations of
Lessor or due to war, earthquake or other casualty, or (4} the
assumption or recapture by the United States Government, or any
authorized agency thereof, of the maintenance and operation of
said airport and facilities or any substantial part or parts
Page 15 of 18
thereof
Upon the happening of any of the four events listed mn the
preceding paragraph, such that the leased premises cannot be used
for aviation purposes, then the Lessee may cancel this lease as
aforesamd, or may elect to continue this lease under its terms,
except, however, that the use of the leased premises shall not be
limited to avlatlon purposes, their use being only limited by such
laws and ordinances as may be applicable at that time
XV. MISCZLLANEOUS PROVISIONS
A ENTIRE AGREEMENT This Agreement constitutes the entire
understanding between the parties and as of its effective date
supersedes all prior or independent Agreements between the parties
covering the subject matter hereof Any change or modification
hereof shall be in writing signed by both parties
B BINDING EFFECT All covenants, stipulations and
agreements herein shall extend to, bind and inure to the benefit
of the legal representatives, successors and assigns of the
respective parties hereto
C SEVERABILITY If a provision hereof shall be finally
declared void or illegal by any court or administrative agency
having jurlsdmctlon, the entire Agreement shall not be void, but
the remaznlng 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 ~-~h this agreement shall be in writing and shall be
sent by registered mall, return receipt requested, with postage
and regzstratmon fees prepaid as follows
1 If to Lessor, addressed to
City Manager
City of Denton
215 E McKlnney Street
Denton, Texas 76201
2 If to Lessee, addressed to
Mr Douglas C Weyer
P O Box 1322
Lake Dallas, TX 75065
Notices shall be deemed to have been received on the date of
receipt as shown on the return receipt
page 16 of 18
E HEADINGS The headings used in this Agreement are
lntended for convenlence of reference only and do not define or
llmlt the scope or meaning of any provlslon of thls Agreement
F GOVERNING LAW Thls Agreement is to be construed
accordance with the laws of the State of Texas
G MEDIATION The parties may agree to settle any d~sputes
under this lease by submitting the d~spute to mediation or other
means of alternate d~spute resolution No medlatzon or alternate
d~spute resolutzon, arising out of or relating to th~s lease,
~nvolvzng one party's disagreement may include the other party to
the d~sagreement w~thout the other's approval
H NO WAIVER No waiver 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 INDEPENDENT CONTRACTOR During all times that th~s Lease
· s ~n effect, the parties agree that Lessee is and shall be deemed
to be an ~ndependent contractor and operator and not an agent or
employee of the Lessor wmth respect to their acts or omissions
hereunder For all the purposes hereunder, Lessee ~s and shall be
deemed an lndependent contractor and ~t ~s mutually agreed that
nothing contained herezn shall be deemed or construed to
constitute a partnership or joint venture between the part~es
IN WITNESS WHEREOF, the part~es have executed this Agreement
as of the day and year first above written
CITY OF DENTON, TEXAS
LESSOR
JENNIFER WALTERS, CITY SECRETARY
HERBERT L PROUTY, CITY ATTORNEY
Page 17 of 18
THE STATE OF TEXAS §
COUNTY OF DENTON
Thls instrument was acknowledged before me on the ~day of
~ STATE OF TE~S ~ My qomm~slon Exes
[ ~C0mm~n Expir. 3-2 I-2~2]
Page 18 of 18
/ ATTACHMENT "A"
55 O0
q [--
0 ROAD
ATTACHMENT "B"
Cd~ of O~nto~, De. ton Cou~ Texo~ o~d being o porho~ of ~o~ ~ B/oc~ ~ of
o J tnch dtsk tot fh~ northwest corner of sold ~ot l.
~ENCE South 88 degrees .16 mtnufe~ I0 seconds &Dst. o dtslonce of I85 76 feet to o 3 ,
tnch d~sk for on el~ co~er of sold lot t
I, o dtsfance of 27013 fe~t lo o pomf so~d poinf be/n~ North Ol degrees 23 m~ul~s 50
seconds East. o distance of 54,"30 ftal ~om th~ southernmost southwest comer o/
~ot I,
~ENCE Soul~ 88 de~re~s 36 minutes I0 s~conds East over and across sold ~ot 1. o
dlslanc~ of 325 O0 feet to ~n ~roo rod ~et for lhe PO/NT O/ 8E~NNINC some bern9
~EK~ conftnu/n~ ov~r and across sold ~ot ~ the [o#owln9 coils
Souf~ 88 degrees ~6 tamales tO seconds East o d/slonc~ o/ ~7700 ~o on ~on rod
set for the northeast co~et o/ fh~ hereto d~scttbed froot,
South OI degrees ~ mmofes 50 seconds W~st o d/stance of 55 O0 f~et ~o on
rod set for fh~ southeast co~et of the her~m d~scr~d
Norfh 88 deqr~s ~6 minutes tO seconds JYes~ o d~stonce of 277 O0 f~et fo an iron
rod set for the southwest com~t o/ fh~ h~r~m described frocf,
Norlh Oi deEre~s 2J mmutes 50 seconds ~ost, o d~stonce of 5500 feet ~o th~
POIN? OF BEGINNING and confom~n9 0 350 acres or ~5,2J5 square /~ef of/and
mor~ or /ess and bern9 sub.cf to any and o# ~os~en~s that may off~cf
fLOOD NO1[ IT IS UY OPINION ILIA! ~IIE PROPERLY DESCRtDED HEREIn_. __IS NO_~_ .... WlI~IIN A SPEC~L FLOOD HAZARD ~E~
ACCORDING 10 IHE FEDERAL EMERGENCY U,UIAGEMEN! AGENCY ROOD INSUI~CE PA[[ M~, COM~IUNlly-P~EL NO qDOn~4 o,155 E
PRESENI' EVFECI'IV[ DAlE OF ~ _A_P_~/./. 2, ._/.e_97._~___, HEREIN PROPERLY $1~AIED WllttlN ZONE _____X_('UNS'HAOEO.) .....
PART C
PROPOSAL
CONTRACTOR Calvert pavxng corporation DATE Aprzl 16,1999
P 0 Box 268 Denton,TX 76202 PAGE 1 OF 2 ----~
SECTION I - PAVING IMPROVEMENTS
ITEM DESCRIPTION QTY. UNIT COST/UNIT TOTAL COST
1 SubgradePreparatlon 1,945 SY 3 oo 5,835 oo
2 ' Hydrated Lime (6%) 33 1 TON 100 00 3,310 00
3 5" 3600 psi Relnf Concrete 1,885 SY 27 00,// 50,895 00
Pavement
4 Seeding 1 AC 500 00 /'~5N._® ~ b
5 Street Bamcades 1 LS 500 00 500.00 ~
TOTAL $61,040 00,
SECTION I
CONTRACTOR' Calvert Pavxng Corporatxon DATE 4/16/99
P 0 Box 268 Denton,TX 76202 PAGE 2 OF 2~
SECTION II - STORM DRAINAGE IMPROVEMENTS
ITEM DESCRIPTION QTY UNIT COSTfUNIT TOTAL COST
I I8"RCP 40 LF 30 00 1,200 00
2 V-BottomFlum¢ 5578 SY 30 00 1,673 40
TOTAL
, SECTION H $2,873 40
BID SUMMARY
TOTAL SECTION I $ 61,040 00
TOTAL SECTION II $ 2,873 40
2 Year, 100% Maintenance Bond $ 2,0oo oo