Loading...
HomeMy WebLinkAboutRES 18-292RESOLUTION NO. 18-292 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to execute a Ground Lease Agreement with SET Aviation, LLC for the construction of a personal aircraft storage hangar at the Beaumont Municipal Airport. Said Ground Lease Agreement is substantially in the form attached hereto as Exhibit "A" and made a part hereof for all purposes. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 20th day of November, 2018. LU - ayor ecky Ames - 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 SET Aviation, LLC, Joshua Cavett, hereinafter called "Lessee." Lessor and Lessee, 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 Lessee and Lessee 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 6,000 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 twenty (20) years, referred to as the "lease term," commencing on the 1st day of January, 20191 the "effective date," which is 30 days after passage of the resolution authorizing this lease, and ending on the 31 day of December, 2038; 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 tenn specified, and any holding over by Lessees after expiration of said term shall not constitute a renewal hereof or give Lessee any rights hereunder in or to the leased premises. SET Aviation, LLC Ground Lease Agreement 1 EXHIBIT "A" 2.3 This lease may be renewed for two (2) ten-year terms, beginning January 1, 2039, with the written approval of the Lessor and the Lessee no less than thirty days prior to the end of the current term. 3. RENT 3.1 Lessee agrees to pay Lessor as rental for the use and occupancy of the leased premises the following sums, subject to adjustment as hereinafter provided: twenty-five cents ($.25) per square foot per year, payable in advance on or before the 1St day of January of each year during the term of this lease: The minimum annual during the term of the agreement shall be one thousand, five -hundred dollars ($1,500.00). 3.1.1 For the sixth (6th) through tenth (10th) years of the term hereof, the annual rental shall increase to thirty cents ($.30) per square foot per year. 3.1.2 For the eleventh (11th) through fifteenth (15th) years of the term hereof, the annual rental shall be increased to thirty-five cents ($.35) per square foot per year. 3.1.3 For the sixteenth (16th) through twentieth (20th) years of the term hereof, the annual rental shall be increased to forty cents ($.40) 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 City of Beaumont, Cash Management, P.O. Box 3827, Beaumont, Texas 77704, 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 Lessee shall be required to erect on the leased premises permanent Hangar(s) containing a minimum of 3,900 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: 2 SFT Aviation, LLC Ground Lease Agreement 4.2.1 Within one (1) month 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 this disapproval. 4.2.2 Within two (2) months from the effective date of this agreement, Lessees shall commence construction of said building under a general construction contract requiring completion within twelve (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 of 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 ad 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 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. 3 SET Aviation, LLC Ground Lease agreement 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. 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 -rate charges. 7. USE OF PREMISES 7.1 Lessees shall use the leased premises only for the storage of personal or business aircraft. No other use is permitted without the prior written consent of the City Manager of his designee. The sale or use of alcoholic beverages is prohibited without the prior written consent of the City Manager of his designee. Additionally, Lessees will be allowed to sublet the premises, subject to approval by Lessor. Approvals required hereunder will not be unreasonably withheld. 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 sarne time furnish Lessor with the address to which it desires copies of notices to be mailed. 4 SET Aviation, LLC Ground Lease Agreement 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 of thing required of Lessees hereunder and all such acts or things done and performed shall be as effective to prevent a forfeiture of Lessee's rights hereunder as if done by Lessees; and, 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's 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 ►nay be erected on the leased premises in a good state of appearance and repair, reasonable wear and tear expected. Improvements are to include driveways, constructed ramps or taxiways on or off of leased premises to provide access to public taxiways. 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. 5 SCT Aviation, LLC Ground Lease Agreement 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. 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 remove 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 prorate 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 Lessee 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. 6 SET Aviation, LLC Ground Lease Agreement 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 form 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 INDEMNFICATION 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's 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. } 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 7 SET Aviation, TIC Ground Lease Agreement 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, lien holder, 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 tenninated. 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. The building constructed on the leased premises and may at its option relet the same for the remainder of the term. 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 8 SET Aviation, I.I.0 Ground Lease Agreement 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 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 origin 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. 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, 9 SET Aviation, LLC Ground Lcase Agreement 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. Lessor shall ensure that all debris and trash are removed from within and around the leased premises in accordance with all applicable laws or requirements. Lessor is 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. 10 S6 -r Aviation, LLC Ground Lease Agrccment 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 operations 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 agrees 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 sub- leesses, 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 or 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. 11 SET Aviation, LLC Ground Lease Agreement 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 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. 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 anyone 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 provisions 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, paint or place any exterior signs on the leased premises or the structure placed thereon. 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. 12 SFT Aviation, LLC Ground Lease Agreement 15. OWNERSHIP BUILDING 15.1 Lessor, 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 sixty (60) days. Lessee may negotiate a group lease renewal for the leased premises. Although, the Lessee is not obligated to enter into any subsequent agreement. 16. APPROVAL OF FAA 16.1 The parties recognize that location of Lessee's operation may require amendment of the airport master plan and approval by the Federal Aviation Administration and the Texas Department of Transportation. Lessor agrees to make such amendment 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 amendment 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 Capital Projects 801 Main St, Room 200 Beaumont, Texas 77701 LESSEE SET Aviation, LLC Joshua Cavett — Member of SET Aviation, LLC 2920 Toccoa Road Beaumont, Texas 77703 13 SET Aviation, LLC Ground Lease Agreement EXECUTED this day LESSER: By: Attest: LESSOR: Attest: 14 SET Aviation, LLC Ground Lease Agreement 20 CITY OF BEAUMONT I2H Kyle Hayes, City Manager By: 44 zir-1 oshua Cavett, Owner EXIHIBIT "All PROPOSED AIRCRAFT STORAGE HANGER (60'X100") EDGE OF EXISTING PAVEMENT PROPOSED AIRCRAFT STORAGE HANGER BEAUMONT Public Works TERMINAL AREA DRAWING GEAA(QNT MQN16RAL AIRP.QRT (BMT,) 1BEA0M0N,,T,, TEXAS_ V PROPOSED AIRCRAFT STORAGE HANGER (60'X100") EDGE OF EXISTING PAVEMENT PROPOSED AIRCRAFT STORAGE HANGER BEAUMONT Public Works TERMINAL AREA DRAWING GEAA(QNT MQN16RAL AIRP.QRT (BMT,) 1BEA0M0N,,T,, TEXAS_