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HomeMy WebLinkAboutO-1988-1623 - , . ORDINANCE NO.' 1623 AN ORDINANCE APPROVING AND AUTHORIZING AN AMENDMENT TO LEASE AGREEMENT BETWEEN THE CITY OF LA PORTE AND CLIFF HYDE FLYING SERVICE, INC.~ MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT~ FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW~ AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. The City Council hereby approves and authorizes the contract, agreement or other undertaking described in the title of this ordinance, in substantially the form as shown in the document which is attached hereto and incorporated herein by this reference. The Mayor is hereby authorized to execute such document and all related documents on behalf of the City of La Porte. The City Secretary is hereby authorized to attest to all such signatures and to affix the seal o~ ,the City to all such documents. Section 2. The City Council officially finds, determines, recites and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Article 6252-17, Texas Revised Civil Statutes Annotated~ and that this meeting has been open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 3. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, th is I';<.-:t:k- day of ~e.p~ , 1988. ATTEST: r:!/WJU~ Ci Y Secretary ~:;;d City Attorney , . e CLIFF HYDE FLYING SERVICE AIRCRAFT SALES - SERVICE - FLIGHT TRAINING Eastern Airlines Pilot Entry Program LA PORTE AIRPORT. PHONE 471-0265.11015 WEST MAIN. LA PORTE. TEXAS 77571 December 5, 1988 Mr. Robert Herrera City Manager City of LaPorte P. o. Box 1115 LaPorte, Texas ??5?1 Dear Bob: As per our conversation concerning the lease of certain tie-down areas at the airport, we want to submit the following changes to the original request. We propose to lease the 24 tie-downs immediately at the posted rental rate with the term to expire 7/6/97. Also, we would like to have a 2 year option on the 100' by 100' tract and the 45 central tie-downs as a package deal whereby Cliff Hyde rlying Service, Inc. would have first right of refusal to any written lease application by a third party. Cliff Hyde Flying Service, Inc. would receive a written notice from the City of LaPorte with a )0 day consideration period. We would pay $500.00 a year for this option. As I have previously stated, these areas will be used for future expansion of our airline pilot training facility. Your prompt consideration is appreciated. Sincerely, (}j J llyJJ~ Cl1ff'Ylyde President CH/drk e e PROPOSED YEARLY REVENUE CLIFF HYDE FLYING SERVICE, INC. Current Lease Payments - Property Proposed Lease Payments - After amendment: Property 24 Tie-downs $1,354.84 3,456.00 TOTAL ANNUAL REVENUE $1,354.81~ $4,810.84 Note: Total does not include one-time option fee of $500.00 Proposed Lease Payments - If option is exercised: Property 24 Tie-downs 100' x 100' Tract 45 Tie-downs $1,354.84 3,456.00 250.00 6,480.00 TOTAL $11,540.84 e e THE STATE OF TEXAS S S COUNTY OF HARRIS S AMENDMENT TO LEASE THIS AGREEMENT, entered into by and between the City of La Porte, Harris County, Texas, hereinafter called "City" and Cliff Hyde Flying Service, Inc., a Texas business corporation, hereinafter called "Lessee": I. For and in consideration of the premises, and the mutual covenants herein contained, the parties agree to the amendment of an Agreement of Lease between the parties dated July 6, 1956, as amended November 4, 1963, and as further amended on July 29, 1986. Except as amended hereby, said Lease Agreement, as amended, shall remain in full force and effect until July 6, 1997. II. Reference is made to a plat attached hereto, on which the twenty-four (24) tie-downs are shown in yellow; the 100' by 100' tract is shown in blue; the forty-five (45) tie-downs are shown in green; the road to the 24 tie-downs is shown in purple; and the future road to the 45 tie-downs is shown in red. All references in this Amendment to Lease Agreement shall refer to such properties, as shown on Exhibit "A" attached hereto, incorporated by reference herein, and made a part hereof for all purposes. The 45 tie-downs shall be subject to the existing pipeline easement, as shown on Exhibit "A". e e -2- III. For and in consideration of the sum of Five Hundred Dollars ($500.00) cash paid to City by Lessee, City grants and gives to Lessee, an option, in the form of a right of first refusal upon thirty (30) days written notice from City to Lessee, whereby Lessee may lease from City, the 45 tie-downs and the 100'x 100' tract shown on Exhibit .An, as a combined additional lease tract. Lessee shall pay to City, as additional rent, should Lessee exercise its option to lease said 45 tie-downs and said 100'x 100' tract, the annual rental as provided in Paragraph VI hereof, plus a sum equal to thirty percent (30%) of the gross revenues obtained from rental of tie down spaces, upon 'execise of such option by Lessee, provided, however, Lessee shali guarantee the City a yearly rental of not.tess than $144.00, multiplied by the 45 tie-downs leased. No less than the full 45 tie-downs and the 100'x 100' tract may be leased under the option granted under this paragraph. Rental for the 45 tie- downs shall be paid monthly, in a sum equal to 1/12 of the annual rental due, in advance, on the 1st day of each and every month. City reserves the right to rent such tie down areas direct to the public, if not leased by Lessee hereunder, or if not leased by another fixed base operator at the City of La Porte Airport, from City. City will give Lessee hereunder thirty (30) days written notice of any offer by another fixed based operator at the City of La Porte Municipal Airport, to rent such 45 tie-downs and 100'x 100' tract, in which case Lessee hereunder may either accept the option to lease all of such properties, by giving written notice to the City of its desire to do so, or, in the absence of such written . e -3- notice, upon Lessee's refusal to lease such 45 tie-downs and lOO'x 100' tract, City shall be free to lease same to another fixed base operator at the City of La Porte Municipal Airport, or to continue to operate the same by City. In the event Lessee accepts and exercises its option hereunder, the term of the lease for such 45 tie-downs and such 100'x 100' tract shall extend for tne full remaining term of the primary lease hereunder. This option shall continue in force to December 31, 1989. Upon mutual agreement of the parties, this option may be renewed and extended to December 31, 1990. IV. City leases to Lessee, for the term expiring July 6, 1997, the 24 tie-downs as shown on Exhibit "A" attached hereto. Lessee hereunder shall pay to City, as additional rent, a sum equal to thirty percent (30%) of the gross revenues obtained from rental of tie-down spaces, provided, however, Lessee shall guarantee City a yearly rental of not less than $144.00, multiplied by the 24 tie- downs leased. Rental for the 24 tie-downs shall be paid monthly, in a sum equal to 1/12 of the annual rental due, in advance, on the 1st day of each and every month. V. Lessee shall have the right and privilege to construct, at Lessee's sole cost and expense, an access road, to be located as shown in purple on Exhibit "A" attached hereto, to connect Lessee's existing lease space to the 24 tie-downs. Lessee shall submit plans and specifications prepared by a Texas registered professional engineer with municipal experience, to be approved in writing in e e -4- advance by City, for the construction of such rqad, which shall be to City specifications. Likewise, and on the same terms and conditions, Lessee shall have the right and privilege to construct an access road, as shown in red on Exhibit "A" attached hereto, to access the 45 tie-downs, in the event that Lessee exercises its option to lease the 45 tie-downs and the 100'x 10~' tract. Provided, however, City reserves the right to remove the road shown in red on Exhibit "A" attached hereto, should the City in the future construct additional tie-downs in that area, in which case Lessee's continued access for ingress and egress from the 24 tie-downs to the 45 tie-downs, shall be kept and maintained by City. VI. City agrees to lease to Lessee, from the effective date of the exercise of option by Lessee, for a term expiring July 6, 1997, the 100'x 100' tract shown in blue on Exhibit "A" attached hereto. Such 100'x 100' tract shall only be leased in conjunction with the 45 tie downs. The rental for such 100' by 100' tract shall be $250.00 per year. Rental shall be paid annually in advance on July 6th of each calendar year. Rental from the effective date of exercise of option until the following July 6, shall be prorated and paid in full upon exercise of such option. Rental for subsequent years, under this paragraph, shall be subject to increase, in accordance with any increases in the Consumer Price Index for All Urban Consumers, with 1988 as a base year. VII. The Lessor is entitled to collect and the Lessee agrees to pay, all rentals due under this Agreement and Lease to the City of La e e -5- Porte, La Porte Municipal Airport, La Porte, Texas, without notice to the Lessee. Rentals more than thirty (30) days past due may be subject to a service charge of one percent (1%) per month, based on an annual rate of twelve percent (12%). VIII. Without prejudice to any other remedy which otherwise might be used for arrears of rent or other breach of this Agreement, if the Lessor is required or it elects to pay any sum or incurs any obligations or expense, by reason of a failure, neglect or refusal of the Lessee to perform anyone or more of the terms, conditions or covenants of this Agreement and Lease or as the result of any act or omission of Lessee contrary to said terms, conditions and covenants, the sum or sums so paid or the expense so incurred, including all interest, costs, damages and penalties may be added to any installment of rent thereafter due hereunder and each and every part of the same shall be and become additional rent recoverable by the Lessor in the same manner and with like remedies as if it were originally a part of the rent as set forth hereinabove. IX. Except as expressely amended hereby, and as previously amended, the Lease between the parties dated July 6, 1956, and subsequent amendments thereto, shall remain in full force and effect. . e -6- WITNESS OUR HANDS, this the 12th day of December, 1988 CITY OF LA PORTE Mayor ATTEST: City Secretary APP'ROVED: City Attorney CLIFF PreSl ATTEST: ~~~ Secretary LEG END I I 24 TIE DOWNS f;";~~~ii. .:.:::::1 100. x 100' TRACT .-.._.....~__ _n ---_. .91 45 TIE DOWNS ROAD TO 24 TIE DOWNS - FUTURE RD TO 45 TIE DOWNS ", ,/ '" , .- - - - .- - -. ;;: __ -i-/ J~'. r .~. " - p/ ... -~- \ -- " \ ~. "-'. , I - '..../ CU,C'F HYDE FLYING SERVICES, INC. \ --... , TcX~ AIR -NATIONAL GUARD -- H'rhwa~_ f IfCt,OCAn f3c-ACOIJ . Olf lOC4 0-" '7-'''''' [J.......L~.. LJt..L.L D" h~__:=ffl k~___ L.J e- .K ,5: ~ -~ f l. r, ~ - -; / / /