Res 073-84 4/17/1984RESOLUTION NO. 7j_,41
RESOLUTION APPROVING AND AUTHORIZING THE CITY MANAGER
TO EXECUTE A LOAN APPLICATION/AGREEMENT WITH THE STATE
OF TEXAS, TEXAS AERONAUTICS COMMISSION FOR CONSTRUCTION
OF A STORAGE HANGAR AT WICHITA FALLS MUNICIPAL AIRPORT.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WICHITA FALLS,
TEXAS, THAT;
That certain loan agreement, a copy of which is attached hereto from the State
of Texas, acting through the Texas Aeronautics Commission to the City of Wichita Falls
for purpose of borrowing $50,000.00 for twenty (20) years at five (5%) percent simple
interest is hereby approved, and the City Manager is authorized to execute same for
the City of Wichita Falls.
PASSED AND APPROVED THIS the /7Zikday of (i /c.„<„,e/ , 1984.
A O R.
ATTEST:
cam" !7)Lg/yL/L
City Clerk
SAMPLE
TEXAS AERONAUTICS COMMISSION
LOAN AGREEMENT
PART I
TAC Project No.
Date of Agreement
TO:
Herein referred to as the "Sponsor")
FROM: The State of Texas, acting through the Texas Aeronautics
Commission
Herein referred to as the "Commission")
WHEREAS, the Sponsor has submitted to the Commission an application forLoanAgreementdatedforaprojectfordevelopment
of the Airport, together with plans and
specifications for such project which application for Loan Agreement as
approved by the Commission is hereby incorporated and made a part of
this Agreement by reference so as to have the same effect as though
repeated herein; and
WHEREAS, the Sponsor certifies that it has available in cash and/or in
other acceptable form the resources for the undertaking and successfulcompletionofthisproject, and
WHEREAS, the Commission has approved a project for development of theAirport (herein called the "project") consisting of the following:
TAC Form 400-6a Page 1 of 8
NOW, THEREFORE, pursuant to and for the purpose of carrying out the
provisions of the Texas Aeronautics Act, Tex. Rev. Civ. Stat, art 46c-1
through 46c-8, and in consideration of the Sponsor's adoption and
ratification of the conditions of this Agreement as hereinafter provided
and of the benefits to accrue to the State of Texas and the public from
the accomplishment of the project and the operation and maintenance of
the airport improvement as herein provided, THE TEXAS AERONAUTICS
COMMISSION, FOR AND ON BEHALF OF THE STATE OF TEXAS, HEREBY AGREES TO
Loan $ for the construction of the
described above.
The Texas Aeronautics Commission and the of
as Sponsor, in consideration of their
mutual promise and the benefits accruing to each as described above,
agree to the following terms:
I. The sum of shall be paid to the Sponsor upon
satisfactory completion of the work on the Project, and shall
constitute the principal amount loaned. In the event the
actual cost of the Project is less than the principal amount
stated above, Sponsor shall return any surplus funds to the
Commission within 30 days of the discovery that a surplus
exists, without interest or penalty on the surplus amount.
An Addendum to this Agreement revising the principal amount
and the interest due thereon to reflect the actual obligation
incurred shall be executed if project costs are less than the
amount loaned. The Addendum shall become a part of the LoanAgreementforthelimitedpurposestatedherein, and all other
terms and covenants shall remain unchanged.
II. Interest shall be 5 percent per annum.
III. The Sponsor shall repay this loan in annual installments, with
the amount of each installment to be as shown on the attached
repayment schedule, marked Attachment One. The first payment
shall be due with each successive payment due
on the same date each year thereafter, until the loan is
repaid in its entirety. The last payment shall be due
Sponsor may make additional payments of any or all of the
amount of the loan at any time, which includes principal andinterest, without any penalty. However, prepayments shall not
relieve Sponsor of its obligation to make the annual payments.
Early payment of the balance due under this agreement shall
not reduce the total amount of the obligation.
IV. Sponsor agrees not to sell , transfer, exchange, mortgage or
encumber all or any portion of the project without prior
written permission from the Commission.
TAC Form 400-6a Page 2 of 8
V. Sponsor shall be considered in default upon the expiration of
the last day of the 6th month from the due date for the
receipt of the last previous payment and after this date the
Texas Aeronautics Commission shall have the right to exercise
its remedies contained in this agreement under the Breach
provisions below;
VI. Sponsor hereby expressly waives all notices, demands for
payment, presentations for payment, protest and notice of
protest, as to this note;
VII. Upon receipt of the last payment under Term III herein, Lender
shall execute and deliver to Sponsor a Release cancelling thefiscalobligationofthisAgreement.
COVENANTS
1 . The period of this Loan Agreement shall be twenty (20) years
from the date of Sponsor's acceptance.
2. The Sponsor shall :
a. Begin construction on or before
Failure to do so will constitute just cause for termina-
tion of the obligations of the State of Texas hereunder
by the Commission, unless at the Sponsor's request, the
Commission grants additional time in writing.
b. Carry out and complete the project without undue delayandinaccordancewiththeplansandspecificationswhich
are submitted to and approved by the Commission staff.
3. The loan will be paid only after the staff has inspected and
approved the completed project and the Sponsor has completedhazardzoningoftheairport.
4. The airport or navigational facility and the Project shall
remain under Sponsor's control during the period of this LoanAgreement.
5. The airport or navigational facility and the Project shall be
maintained by Sponsor in a safe and serviceable condition
during the period of this Agreement.
6. Consistent with safety and security requirements , Sponsor
shall make the Project available to all types, kinds and
classes of aeronautical use without discrimination between
such types, kinds and classes and shall provide adequate
public access during the period of this agreement.
TAC Form 400-6a Page 3 of 8
7. Sponsor shall not grant or permit anyone to exercise an
exclusive right for the conduct of any aeronautical activity
on the Airport or the Project. Aeronautical activities
include, but are not limited to, scheduled airline flights;
charter flights; flight instruction, aircraft sales , rental
and repair; sale of aviation petroleum products; aerial
application; and hangar rental . The airportpt consists of all
runways, landing strips, navigationalattonal aids, right of ways and
any appurtenant areas used or intended for use in conjuction
with these elements, including all airport buildings and
facilities located on the Sponsor's property.
8. Land identified in Sponsor's LoLoan application and the project
to be constructed upon said land is hereby pledged to airport
use and shall not be removed from such use during the term ofthisAgreement. Sponsor shall submit all necessary title
documents to the Commission for approval showing that it holds
fee simple title to the land on which the Project will be
constructed, including executed agreements subrogating the
exercise of any outstanding mineral rights to the use of the
surface for airport purposes.
9. Sponsor shall submit to the agency annual statements of
airport revenues and expenses, including the project and the
Airport Fund of the Sponsor.
10. The agency shall not be a party to any contract or commitment
which Sponsor may enter into or assume in carrying out the
project.
11. Insofar as reasonable and within its power, Sponsor shall
adopt and enforce comprehensive zoning regulations to prevent
airport hazards and restrict the use of land adjacent to or in
the immediate vicinity of the airport to activities compatible
with normal airport operations as provided in the AirportZoningAct. No Sponsor shall be eligible for payment of the
amount of the loan which is the subject of this agreement or
for a subsequent Loan or grant from the Commission unless
Sponsor has adopted and passed an airport zoningordinance/order.
12. The Airport Fund shall be establishedbyresolution, order or ordinance in the treasury of theSponsor. A properly executed copy of the resolution, order or
ordinance shall be submitted to. the TAC prior to payment of
any funds under this agreement. All fees, charges, rents, and
money from any source derived from airport operations must bedepositedintheAirportFund, and
shall not be diverted to the general revenue fund or any other
special revenue fund of the Sponsor.
TAC Form 400-6a Page 4 of 8
r
13. All fees collected for use of an airport or navigational
facility constructed with funds provided under the program
shall be reasonable and nondiscriminatory. The proceeds of
such fees shall be deposited in the Airport Fund, and used
first for the repayment of the loan, and the remainder for
airport development, operation, and maintenance.
14. This Loan Agreement is subject to the applicable provisions of
the Aviation Facilities Development Rules of the Texas
Aeronautics Commission, 43 Texas Administrative Code Section
65, and the applicable provisions of the Texas Aeronautics Act
art. 46c-1 , et seq. , V.T.C.S. , the Municipal Airport Act, art.
46d-1 , et seq. , V.T.C.S. , and the Airport Zoning Act, art.
46e-1 , et seq. , V.T.C.S. Failure to comply with the
aforementioned rules and statutes shall be considered a breach
of this contract and will allow the Commission to pursue the
remedies for breach as stated below.
15. The provisions of the standards for Uniform Grant and Contract
Management Standards as required by Tex. Rev. Civ. Stat, art.
4413 (32g) govern the provisions of this agreement to the
extent applicable, and are incorporated by reference into this
agreement and considered to be a part of this agreement as if
the terms were reproduced herein. Copies of the Standards are
available upon request from the Commission.
16. Sponsor shall maintain in effect property damage insurance
covering the project and name the Texas Aeronautics Commission
Loan Fund as beneficiary. Proof of this insurance shall be
submitted to the Texas Aeronautics Commission.
17. Special Conditions:
TAC Form 400-6a Page 5 of 8
r
BREACH
Of primary importance to the Commission is compliance with the terms and
conditions of this Loan Agreement. If, however, after all reasonable
attempts to require compliance have failed, the Commission finds that
Sponsor is unwilling and/or unable to comply with the terms and con-
ditions of this Agreement, or the application incorporated herein, the
Commission may, in its discretion, pursue one or both of the following
remedies:
1 ) advise the Attorney General to bring suit seeking pro rata
reimbursement of the amount paid to Sponsor by the State,
pursuant to the Loan Agreement;
2) deny Sponsor' s future requests for state aid. The Commission
shall be limited to the assets of the
Airport Fund in pursuing any remedy for breach.
The Sponsor's acceptance of this Agreement and ratification and adoption
of the application for Loan Agreement incorporated herein shall be
evidenced by execution of this instrument by the Sponsor, as hereinafter
provided, and shall comprise the Loan Agreement stating the obligations
and rights of the State of Texas and the Sponsor with respect to the
completion of the Project and the operation and maintenance of it. The
Agreement shall remain in full force and effect for the full term of the
agreement and shall expire only upon the complete and satisfactory
repayment of the obligation created in this instrument or upon resolu-
tion satisfactory to the Commission of breach of the Agreement.
STATE OF TEXAS
TEXAS AERONAUTICS COMMISSION
By:
C. H. Wilkins , executive
Director
Date:
TAO Seal )
TAC Form 400-6a Page 6 of 8
Part II
Executed this day of 19
Seal )
Sponsor)
ACKNOWLEDGEMENT
Before me, the undersigned authority, personally appeared
the of and stated underoaththatsignedthisagreementforthe
and that has full
the State of Texas and
thegoverninglawsofa
the
o under of
sponsorto execute thisagreementandbindthetoitsterms.
Title of Office)
SIGNED AND SWORN TO BEFORE ME, this day of19
Notary Public,
County, Texas.
My Commission expires
TAC Form 400-6a
Page 7 of 8
r
Part III - Certificate of Attorney
I , as attorney for
Texas, do hereby certify that IhavefullyexamineatheLoanhgreement, and find that the acceptance and
execution of the Agreement by Sponsor is in accordance with the laws oftheStateofTexas.
Dated at Texas, this day of
19
TAC Form 400-6a
Page 8 of 8