HomeMy WebLinkAboutRES 96-218 RESOLUTION NO.
BE IT RESOLVED BY THE CITY COUNCIL
OF THE CITY OF BEAUMONT:
THAT the City Manager be and he is hereby authorized to execute an agreement with J.
M. Carrell and Hugh Kelley to lease ground space at Beaumont Municipal Airport for the
construction of a personal aircraft storage hangar. The agreement is substantially in the
form attached hereto.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the ll�kl, day of
1996.
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STATE OF TEXAS
KNOW ALL MEN BY THESE PRESENTS
COUNTY OF JEFFERSON
GROUND LEASE AGREEMENT
THIS AGREEMENT is made and entered into by and between the City of Beaumont, Texas,
a municipal corporation, hereinafter called "Lessor", and J. M. Carrell and Hugh Kelley, hereinafter called
"Lessees".
Lessor and Lessees, for and in consideration of the rents, covenants and agreements herein
contained, mutually covenant and agree as follows:
1. LEASED PREMISES
1.1 Lessor leases to Lessees and Lessees hires from Lessor, for the purposes of constructing
and operating Aircraft Storage Hangar as provided herein and for no other purpose, those certain premises
located on the Beaumont Municipal Airport in the County of Jefferson, State of Texas, containing 6.600
square feet of land, and being more particularly described in Exhibit "A" attached hereto and made a part
hereof.
2. TERM
2.1 This lease shall be for a term of thirty (30) years, referred to as the "lease term,"
commencing on the day of , 1996, the "effective date," which is 30 days
after passage of the resolution authorizing this lease and ending on the day of
; subject, however, to earlier termination as hereinafter provided.
2.2 This lease shall terminate and become null and void without further notice on the expiration
of the term specified, and any holding over by Lessees after expiration of said term shall not constitute a
renewal hereof or give Lessees any rights hereunder in or to the leased premises.
3. RENT
3.1 Lessees agrees to pay Lessor as rental for the use and occupancy of the leased premises
the following sums, subject to adjustment as hereinafter provided: Five cents ($.05) per square foot per
year for the first five (5) years of the lease term. Rental payments shall be payable in advance on or before
the effective date of each year during the term of this lease.
EXHIBIT "A"
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3.1.1 For the sixth (6th)through tenth 0 0th) years of the term hereof, the annual rental
shall increase to six cents ($.06) per square foot per year.
3.1.2 For the eleventh 01th) through fifteenth (15th) years of the term hereof, the
annual rental shall be increased to seven cents ($.07) per square foot per year.
3.1.3 For the sixteenth 0 6th) through twentieth (20th) years of the term hereof, the
annual rental shall be increased to eight cents ($.08) per square foot per year.
3.1.4 For the twenty-first (21 st) through twenty-fifth (25th) years of the term hereof,
the annual rental shall be increased to nine cents ($.09) per square foot per year.
3.1.5 For the twenty-sixth (26th) through thirtieth (30th) years of the term hereof, the
annual rental shall be increased to ten cents ($.10) per square foot per year.
3.2 All installments of rent hereunder, when and as the same become due and payable, shall
be paid to the Department of Central Services, P. 0. Box 3827, City Hall, Beaumont, Texas, or to such
other office or officer of Lessor as the City Manager may designate in writing in advance.
4. CONSTRUCTION By LESSEES
4.1 Lessees shall be required to erect on the leased premises permanent Hangars containing
a minimum of 5"000 square feet of space and paved driveways accessing taxiways. Lessor shall have the
right of reasonable approval of plans and specifications for the construction of said building and
appurtenances. The building and its appurtenances shall be constructed in accordance with all applicable
city, state and federal laws, ordinances, rules and regulations.
4.2 Lessees shall comply with the following construction schedule:
4.2.1 Within two (2) months from the effective date of this agreement, Lessees shall
furnish the City Manager or his designee detailed plans and specifications for
construction of the building and its appurtenances. The City Manager or his
designee shall approve or disapprove same. The City Manager or his designee
may not unreasonably withhold his approval of the construction plans and
specifications. If the City Manager or his designee disapproved the construction
plans and specifications, he shall provide Lessees a written statement of reasons
for his disapproval.
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4.2.2 Within six (6) months from the effective date of this agreement, Lessees shall
commence construction of said building under a general construction contract
requiring completion within twelve f 12) months of the date of execution of this
agreement.
4.3 No structure, or other improvement, shall be placed on the leased premises which does not
comply with the plans, specifications and locations approved by Lessor. Lessees shall make no material
addition to or alteration of any structure erected on the leased premises unless and until plans and
specifications of the proposed addition or alteration shall have first been submitted to and approved by the
City Manager or his designee.
4.4 Construction shall be performed by a contractor(s) licensed by the City of Beaumont to
provide the required services. All construction shall adhere to all appropriate federal, state and local laws,
regulations, standards, codes and ordinances.
4.5 The approval by Lessor of any plans and specifications refers only to the conformity of
such plans and specifications to the general architectural plan for the leased premises and such approval
shall not be withheld unreasonably. Such plans and specifications are not approved for architectural or
engineering design and Lessor, by approving such plans and specifications, assumes no liability or
responsibility for any defect in any structure constructed from such plans or specifications. All plans and
specifications must be submitted to the City's building code enforcement division for review and approval.
All applicable permits must be obtained.
5. TAXES
5.1 In addition to the rental, Lessees shall pay and discharge all taxes, general and special
assessments, and other charges of every description which during the term of this agreement may be
levied on or assessed against the leased premises and all interests therein and all improvements and other
property thereon. Lessees shall pay all such taxes, charges and assessments to the public officer charged
with collection thereof before same shall become delinquent, and Lessees agrees to indemnify and save
harmless Lessor from all such taxes, charges and assessments.
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6. UTILITIES
6.1 Lessees shall pay all charges for water, heat, gas, electricity, telephone, sewers, and any
and all other utilities used on the leased premises throughout the term of this lease, including any
connection fee and pro-rata charges.
7. USE OF PREMISES
7.1 Lessees shall use the leased premises only for the storage of personal aircraft. No other
use is permitted without the prior written consent of the City Manager or his designee. The sale or use
of alcoholic beverages is prohibited without the prior written consent of the City Manager or his designee.
8. ENCUMBRANCE OF LEASEHOLD ESTATE
8.1 Lessees may, at any time, encumber the leasehold interest, by deed of trust, mortgage,
or other security instrument, without obtaining the consent of Lessor, but no such encumbrance shall
constitute a lien on the fee title of Lessor, and the indebtedness secured thereby shall at all times be and
remain inferior and subordinate to all the conditions, covenants, and obligations of this agreement and to
all rights of Lessor hereunder.
8.2 If at any time after execution and recordation in Jefferson County, Texas, of any such
mortgage or deed of trust, the mortgagee or trustee therein shall notify Lessor in writing that any such
mortgage or deed of trust has been given and executed by Lessees, and shall at the same time furnish
Lessor with the address to which it desires copies of notices to be mailed. Lessor hereby agrees that it
will thereafter mail to such mortgagee or trustee, at the address so given, copies of any and all notices
which Lessor may from time to time give or serve upon Lessees under and pursuant to the terms and
provisions of this agreement.
8.3 Any lender on the security of the leasehold shall have the right at any time during the term
of this agreement:
8.3.1 To do any act or thing required of Lessees hereunder and all such acts or things
done and performed shall be as effective to prevent a forfeiture of Lessees' rights
hereunder as if done by Lessees; and,
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8.3.2 To realize on the security afforded by the leasehold estate by foreclosure or power
of sale or other remedy afforded at law or in equity or by the security documents
and to transfer, convey, or assign the title of Lessees to the leasehold estate
created hereby to any purchaser at any such foreclosure sale, and to acquire and
succeed to the interest of Lessees hereunder by virtue of any such foreclosure
sale.
9. REPAIRS AND RESTORATION
9.1 Lessees, at Lessees' own cost and expense at all times during the term of this lease,
agrees to keep and maintain, or cause to be kept and maintained, all buildings and improvements which
may be erected on the leased premises in a good state of appearance and repair, reasonable wear and tear
excepted. Improvements are to include driveways, ramps or taxiways constructed on or off of leased
premises to provide access to public taxiways or driveways. Failure to maintain the buildings and
improvements in a good state of appearance and repair shall be considered a default in the performance
of the agreement and remedied as in accordance with the provisions of this lease.
9.2 The determination of whether the buildings and improvements are in compliance with the
maintenance requirements of this provision shall be the sole discretion of the Lessor.
9.3 In the event the building or any building or improvements thereafter constructed on the
leased premises is damaged by fire or any other casualty, the Lessees shall have the option to:
9.3.1 Repair, reconstruct or replace the damaged building or improvements, with
reasonable diligence, so that the building, to the extent originally constructed by
Lessees, is restored to substantially the condition it was in prior to the happening
of the casualty; provided, however, that if the commencement, construction, or
completion of said repair, reconstruction, or replacement work shall be prevented
or delayed by reason of war, civil commotion, acts of God, strikes, governmental
restrictions or regulations, or interferences, fire or other casualty, or any other
reason beyond the control of Lessees, whether similar to any of those enumerated
or not, the time for the commencing or completing, or both, of the construction
of said building, as the case may be, shall automatically be extended for the period
of each such delay.
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9.3.2 Remove all structures, improvements, debris and remains and return the leased
premises to its original condition within thirty (30) days of the casualty. If the
leased premises are not returned to its original condition within the time specified,
Lessor may remover or cause to be removed any remaining structures or debris
and return the leased premises to its original state. All costs shall be borne by the
Lessees. In addition, the lease shall terminate with no prorata return of any
rentals paid.
10. LIENS
10.1 Lessees shall not suffer or permit any mechanics' liens or other liens to be filed against the
fee of the leased premises nor against Lessees' leasehold interest in the land nor any buildings or
improvements on the leased premises by reason of any work, labor, services, or materials supplied or
claimed to have been supplied to Lessees or to anyone holding the leased premises or any part thereof
through or under Lessees.
10.2 If any such mechanics' liens or materialmen's liens shall be recorded against the leased
premises, or any improvements thereof, Lessees shall cause the same to be removed or, in the alternative,
if Lessees in good faith desires to contest the same, Lessees shall be privileged to do so, but in such case
Lessees hereby agrees to indemnify and save Lessor harmless from all liability for damages occasioned
thereby and shall, in the event of a judgment of foreclosure on said mechanics' lien, cause the same to be
discharged and removed prior to execution on such judgment.
11. INSURANCE AND INDEMNIFICATION
11.1 Lessees shall indemnify, defend, and hold harmless Lessor, its officers, agents and
employees from any and all liabilities, demands, actions, losses, damages and costs, including all costs of
defense thereof caused by or arising out of, or in any way related to Lessees' use or occupancy of the
leased premises or occurring on the leased premises during the term of the lease or caused by, arising out
of, or in any way related to operations conducted by Lessees including claims, liabilities and actions based
upon acts, omission, or negligence of the Lessor, its officers, agents, and employees. Upon demand,
Lessees shall, at its own expense, defend Lessor, its officers, agents, and employees, through counsel
acceptable to Lessor, against any and all liabilities, claims, demand, actions, damages and costs.
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11.2 Lessees shall purchase and maintain in full force and effect insurance as provided herein,
with the City of Beaumont as a named insured. A certificate of insurance, or a copy of the insurance
policies, shall be furnished to Lessor and shall provide that the Lessor shall receive ten days' prior written
notice before any change or cancellation of any policy. The limits established herein may be modified by
prior written consent of the City Manager or his designee and shall be increased if the Lessor's standards
are amended to provide increased limits.
COMMERCIAL GENERAL LIABILITY COVERAGE:
Bodily injury (each accident): $300,000.00
Property damage (each accident): $100,000.00
12. SUBLEASES
12.1 Lessees may not sublease or assign any portion of the agreement or any of the premises
leased to Lessees, nor shall a foreclosing trustee, lienhold, or mortgagee do so, to any other person, firm,
or corporation without the prior consent, in writing, of Lessor, which consent shall not be unreasonably
withheld.
13. DEFAULT AND REMEDIES
13.1 Should Lessees default in the performance of any covenant, condition, or agreement in this
lease, and such default is not corrected within ten (10) days after receipt of written notice from Lessor to
Lessees and any lender as required by Section 8, Lessor may declare this lease, and all rights and interests
created by it, to be terminated. Upon Lessor electing to terminate, this lease shall cease and come to an
end as if that were the day originally fixed herein for the expiration of the term hereof, and including
payment of ground rental beyond that date. Upon such event, Lessees must remove building and
improvements constructed and return the leased premises to its original condition within thirty (30) days.
Failure to so remove the structure and improvements results in the Lessor's right to obtain possession and
ownership of the building and improvements. Lessor, its agent or attorney, may resume possession of the
premises and by such action obtain ownership of the building constructed on the leased premises and may
at its option relet the same for the remainder of the term.
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13.2 Any termination of this lease as herein provided shall not relieve Lessees from the payment
of any sum or sums that shall then be due and payable to Lessor hereunder, or any claim for damages then
or theretofore accruing against Lessees hereunder, and any such termination shall not prevent Lessor from
enforcing the payment of any such sum or sums or claim for damages by any remedy provided for by law,
or from recovering damages from Lessees for any default thereunder. All rights, options, and remedies of
Lessor contained in this lease shall be construed and held to be cumulative, and no one of them shall be
exclusive of the other, and Lessor shall have the right to pursue any one or all of such remedies or any
other remedy or relief which may be provided by law, whether or not stated in this lease. No waiver by
Lessor of a breach of any of the covenants, conditions, or restrictions of this lease shall be construed or
held to be a waiver of any succeeding or proceeding breach of the same or any other covenant, condition,
or restriction herein contained.
14. GENERAL PROVISIONS
14.1 Lessees may not conduct any other aeronautical activities within or upon the leased
premises without the prior written consent of the City Manager or his designee.
14.2 The Lessees for himself, his personal representatives, successors in interest, and assigns,
as a part of the consideration hereof, does hereby covenant and agree as a covenant running with the land
that:
14.2.1 No person on the grounds of race, color, or national original shall be excluded from
participation in,denied the benefits of, or be otherwise subjected to discrimination
in the use of said facilities.
14.2.2 That in the construction of any improvements on, over, or under such land and the
furnishing of services thereon, no person on the grounds of race, color, or national
origin shall be excluded from participation in, denied the benefits of, or be
otherwise subjected to discrimination.
14.2.3 That the Lessees shall use the premises in compliance with all other requirements
imposed by or pursuant to 49 CFR Part 21, Nondiscrimination in Federally Assisted
Programs of the Department of Transportation, and as said Regulations may be
amended.
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14.3 That in the event of breach of any of the preceding nondiscrimination covenants, Lessor
shall have the right to terminate the license, lease, permit, etc., and to reenter and repossess said land and
the facilities thereon, and hold the same as if said lease had never been made or issued.
14.4 During the 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 provisions of this instrument, insofar as they are inconsistent with the provisions
of the lease to the Government, shall be suspended.
14.5 No right or privilege has been granted which would operate to prevent any person, firm or
corporation operating aircraft on the Airport from performing any services on its own aircraft with its own
regular employees (including but not limited to maintenance, repair, and fueling) that it may choose to
perform.
14.6 It is understood and agreed that nothing herein contained shall be construed to grant or
authorize the granting of an exclusive right forbidden by Section 308(a) of the Federal Aviation Act of 1958
or for aeronautical activities.
14.7 Lessor reserves the right, in a reasonable and nondiscriminatory manner, to further develop
or improve the area of the Airport as it sees fit, regardless of the desires or views of Lessees and without
interference or hindrance.
14.8 Lessor shall have the right, but not the obligation, to maintain and keep in repair the landing
area of the airport and all publicly owned facilities of the airport, together with the right to direct and
control all activities of Lessees in this regard.
14.9 All hangars, buildings, properties or land on the Airport, shall be maintained in a clean,
attractive, weed free, well painted,junk free condition by Lessees. Lessees shall ensure that all debris and
trash are removed from within and around the leased premises in accordance with all applicable laws.
Lessees are responsible for providing proper trash receptacles and storing such within the hangar. Lessees
shall not allow the accumulation of materials, goods, trash or equipment around the exterior of the hangar.
Lessees shall maintain cultivated areas in accordance with airport regulations.
14.10 Lessor reserves the right to take any action it considers necessary to protect the aerial
approaches of the Airport against obstructions together with the right to prevent the erection of any
building or other structure on or adjacent to the Airport which would limit the usefulness of the Airport or
constitute a hazard to aircraft.
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14.11 This agreement shall be subordinate to the provisions of any existing or future agreement
between Lessor and the United States, relative to the operation or maintenance of the Airport.
14.12 Incorporated into this agreement, by reference and as though set forth herein verbatim,
are the Minimum Standards and Requirements for the Conduct of Commercial Aeronautical Services and
Activities adopted by the Lessor. Such minimum standards shall be lawful, reasonable and
nondiscriminatory. Further, all parties hereto agree to comply with all rules and regulations of the Federal
Aviation Administration and the laws of the United States of America, the State of Texas, and all laws,
regulations, rules and ordinances of the City of Beaumont as they now exist or may hereafter be enacted
or amended, and will not permit the premises covered by this agreement to be used for any unlawful or
improper purpose.
14.13 The standards and regulations enacted by the governmental agency responsible for the
operation of the Airport, now or in the future, may provide for use charges to be paid by those using,
occupying, or conducting operations at the Airport. Such charges may be based upon square footage,
receipts or other reasonable basis, to be established by such standards and regulations. Lessees agree to
pay such charges as same are due and owing under any such standards or regulations now or hereafter
in effect. Any such use charges shall be lawful, reasonable and nondiscriminatory.
14.14 Lessor may, on account of the breach of any provision hereof, including the standards and
regulations incorporated herein by reference, terminate this agreement and eject the party in violation in
accordance with the provisions of this lease.
14.15 The purpose of the lease and the operations to be conducted by Lessees or sublessees,
and the identity of the premises to be occupied, are set forth in this lease. No other operations, business,
or occupancy may be had or done without the additional written consent of the Lessor.
14.16 It is mutually understood and agreed that nothing in the agreement is intended or shall be
construed as in any way creating or establishing the relationship of partners or co-partners between the
parties hereto, or as constituting the Lessees as an agent or representative of the Lessor for any purposes
or in any manner whatsoever.
14.17 Lessees shall permit Lessor's agents, representatives, or employees to enter on the leased
premises for the purpose of inspection, to determine whether Lessees is in compliance with the terms of
this lease, for purposes of maintaining, repairing, or altering the premises, or for the purpose of showing
the leased premises to prospective Lessees, purchasers, mortgagees, or beneficiaries under trust deeds.
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14.18 No waiver by Lessor of any default or breach of any covenant, condition, or stipulation
herein contained shall be treated as a waiver of any subsequent default or breach of the same or any other
covenant, condition, or stipulation hereof.
14.19 This agreement shall be construed under and in accordance with the laws of the State of
Texas, and all obligations of the parties created hereunder is performable in Jefferson County, Texas.
14.20 In case any one or more of the provisions contained in this agreement shall for any reason
be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability
shall not affect any other provision thereof and this agreement shall be construed as if such invalid, illegal,
or unenforceable provision had never been contained herein.
14.21 This agreement constitutes the sole and only agreement of the parties hereto and
supersedes any prior understandings or written or oral agreements between the parties respecting the
within subject matter.
14.22 No amendment, modification, or alteration of the terms hereof shall be binding unless the
same be in writing, dated subsequent to the date hereof and duly executed by the parties hereto.
14.23 Lessees shall not erect or place any exterior signs on the premises that do not meet with
FAA regulations, and the City Manager or his designee.
14.24 Only aircraft may be stored in Hangars. No other non-aeronautical equipment, combustible
products, or items may be placed there for use or storage.
14.25 Lessees are granted the right to operate from temporary facilities on the leased premises
pending occupancy of his permanent structure.
15. OWNERSHIP BUILDING
15.1 Lessees, upon expiration of the term hereof or upon earlier termination of this agreement
as provided herein, shall remove or cause to be removed the existing structure and any improvements from
the leased premises and return said leased premises to its original condition within thirty (30) days.
Lessees may negotiate a ground lease renewal for the leased premises, although, the Lessor is not
obligated to enter into any subsequent agreement.
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16. APPROVAL OF FFA
16.1 The parties recognize that location of Lessees' operation may require amendment of the
airport master plan and approval by the Federal Aviation Administration and the Texas Department of
Transportation. Lessees agrees to make such amendments as may be necessary and to submit same to
said agencies for approval. This agreement is contingent upon such approval, and in the event the
amendments shall not be approved, this agreement shall terminate and both parties shall be released from
all obligations herein contained.
17. NOTICES
17.1 All notices provided to be given under this agreement shall be given by certified mail or
registered mail, addressed to the proper party at the following address:
LESSOR
City of Beaumont
801 Main Street, Room 315
Beaumont, Texas 77701
LESSEES
J. M. Carrell
Hugh Kelley
347 Pinehurst
Sour Lake, Texas 77659
EXECUTED this day of , 1996.
LESSOR:
By:
Ray A. Riley, City Manager
LESSEES:
By:
J. M. Carrell
By:
Hugh Kelley
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