Res 2505 4/15/1980 RESOLUTION NO.
RESOLUTION ACCEPTING PROPOSAL OF RICHARD O. MORRISON
FOR LEASE ON SKYROOM RESTAURANT AT MUNICIPAL AIRPORT,
AND APPROVING SUCH LEASE.
WHEREAS, the City of Wichita Falls has advertised for
proposals for a lease on the Skyroom Restaurant at the Wichita
Falls Municipal Airport; and,
WHEREAS, three proposals were received, and the proposal
of Richard O. Morrison, in which he offered to pay as rental
9 1/4 per cent of the gross sales on the first $10, 000 in
sales per month, plus 10 1/4 per cent of the gross sales in
excess of $10,000 in sales per month, together with the
agreement to do certain cleaning, painting and redecorating,
was the best proposal received.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF ALDERMEN
OF THE CITY OF WICHITA FALLS, TEXAS, THAT:
Such proposal by Richard O. Morrison is hereby accepted,
and the City Manager is authorized to execute a lease, a
copy of which is attached hereto, to Richard O. Morrison, as
lessee, for an initial term of three years from May 1, 1980
through April 30, 1983 , with an option to renew said lease
for an additional period of one year.
PASSED AND APPROVED this the 15th day of April, 1980.
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A Y O R
ATTEST:
City Clerk
SKYROOM RESTAURANT LEASE
STATE OF TEXAS X
X KNOW ALL MEN BY THESE PRESENTS
COUNTY OF WICIRITA X
THIS AGREEMENT made and entered into this 15th day of April , 1980
,by and between the CITY OF WICHITA FALLS, hereinafter called CITY, and Richard
O. Morrison hereinafter called LESSEE, and made effective as of the first day
of May, 1980.
WITNESSETH :
WHEREAS , CITY owns certain buildings, structures and other facilities com-
prising a public airport know as the Wichita Falls Municipal Airport, said premises
hereinafter called AIRPORT, and whereas LESSEE is desirous of operating a Restau-
rant Concession under the terms and conditions as herein set out.
NOW THEREFORE, for and in consideration of the rent, covenants and agree-
ments herein contained, CITY does hereby hire, take and lease from CITY the
following described property on the following terms and conditions, to-wit:
ARTICLE I.
Term
CITY does grant to LESSEE the premises known as the SKYROOM RESTAURANT,
hereinafter referred to as RESTAURANT, being further defined as the area outlined in
red on the plan attached hereto, entitled Exhibit A, and located in the Airport Terminal
Building, for an initial terns of three years, commencing on May 1, 1980 and ending
on the 30th Day of April, 1983. LESSEE shall have an option to renew said Lease
for an additional period of one year, which option may be exercised by LESSEE by
giving CITY notice thereof in writing no less than thirty days prior to the end of the
initial term. The provisions of this lease shall be subject to renegotiation at the end
of the second year of such lease; if either party requests it, both parties shall, in
good faith and immedinl-% , .onfer and consider any propcs eU changes in such provisions.
vi the event the parties ,irc unable to agree upon such proposed cha.nbes, the provisions
herein contained shall continue in effect.
ARTICLE I1.
Surrender of Possession
No notice to cease operations or to quit possession of the leased premises
at the expiration date of the Term of this Agreement shall be necessary. LESSEE
covenants and agrees that at the expiration date of the Term of this Agreement, or
at the earlier termination thereof, he will peacefully surrender possession of the
Leased Premises and any improvements thereon, in good condition, reasonable wear
and tear, acts of Gud, amp other casualties execpted,- and the -City shall have the'
right to take possession of the Leased Premises with or without due process of law.
ARTICLE III.
Rental
LESSEE agrees to pay CITY for the use of the above described premises
rights and easements herein provided a monthly rental of 9 1/4 percent 9.25%)
of Gross Sales on the first Ten Thousand Dollars ($10,000), plus 10 1/4 percent
10.2510 of Gross Sales in excess of Ten Thousand Dollars ($10,000). Such
monthly rental shall be payable to CITY each month during the term of the Lease,
the first payment to be made on or before the Fifteenth day of June, 1980 and sub-
sequent payments to be made on or before the Fifteenth day of each successive
month thereafter for which rental is due hereunder. Gross sales, as used herein
is defined as total income, exclusive of tax, received by or for or paid to LESSEE
for all services performed, whether for cash or other consideration.
ARTICLE IV.
Records and Accounting
LESSEE agrees to beep accurate records, books and accounts in a manner
acceptable to the Chief Accounting Officer of the City of Wichita Falls, Texas. The
latter and his representative shall have the right to examine and audit said records,
books, and acer-ants at ally reasonable three. LESSEE further agrees to Submit to
C'tT�' a Lrue and accurate ,�Lat,ciucut of Monthly Dross Inconnc derived from its con-
cession within five (5) days following each calendar month, and to provde an annual
financial summary within tleirty (30) days following each calendar year.
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ARTICLE V.
Hours of Operation
LESSEE, in keeping with the needs for such service by the general public,
visitors and customers of scheduled airlines, shall provide service at least between
the hours of 6:00 AM and 10:00 PM, seven days a week.
ARTICLE VI.
Standards
LESSEE shall mau,taln Restaurant in a sale, clean,-orderly and inviting con-
dition, in a manner satisfactory to CITY. LESSEE shall provide a distinctive and
attractive menu, subject to the approval of CITY, which shall clearly and permanently
list prices of the standard bill of fare, which prices will not be altered without prior
notification to CITY. CITY agrees to share equally with LESSEE, the printing cost
.of additional and subsequently authorized Meaus.
LESSEE shall be required to properly uniform or dress its attendants and
employees and shall not employ any person in or about the concession premises who
shall use improper language or act in a loud, boisterous or otherwise improper
manner. LESSEE shall unsure the maintenance of a high standard of service to the
public, the performance of such obligation to be determined at the sole discretion of
CITY and will replace the services of any employee whose conduct CITY feels is de-
trimental to its best interest.
ARTICLE VII.
Cale and Upkeep of Prenuses
LESSEE shall make no alterations or modifications of the premises, and shall
not display any advertising or post or display any signs, posters or other markings
without the consent of CITY. LESSEE :.agrees to maintain the entire interior premises,
fixtures and appurtenances in a. neat: and presentable manner, and to be solely res-
ponsible for the cc>s+- LESSEE further agrees to take good care of CITY
Property, CiltILLCc5 acid aplxuUcaa►ccc:;, and, at Ills own expense, repair and return
the premises in good order upon the termination of the use thereof, reasonable wear
and tear excepted. Throut;liout the term of this lease, the replacement of parts and
repair of CITY'S apph-vices and fixtures shall be the responsibility of LESSEE, pro-
vided however, that with t.lic prior knowledge and consent of City, the cost of such
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repairs and replacement parts not caused by LESSEE'S negligence shall be borne equally
by CITY and LESSEE. When CITY considers that it is necessary to replace a major `
item of its equipment,' CITY will do so at its sole expense as soon as it may do so
within its budgetary limitations, provided such replacement was not occasioned by
LESSEE'S negligence; any losses or damages suffered by LESSEE as a result of the
malfunction or nonfunction of CITY'S equipment shall be borne by LESSEE.
ARTICLE VIII.
Advertising
In order to foster increased general patronage during non-premium hours,
CITY agrees to share equally with LESSEE, the cost of any advertising (up to a
maximum of $100 per month) with the stipulation that CITY retains the right to re-
view and approve all such advertising prior to submission to the communications
media.
ARTICLE IX.
Utilities
LESSEE shall provide and pay for telephone and gas service used in
connection with all operations permitted under this lease agreement and shall share
equally with CITY the cost of electric service to this concession, which service will
be separately metered from other Terminal Building functions.
ARTICLE X.
Insurance
Any loss from the operation of Restaurant shall be borne by LESSEE.
LESSEE shall further indemnify and save CITY forever harmless from any and all
claims for damages of any hind or nature which may hereafter be made against
LESSEE on account of any personal injuries or property damage resulting from the
use of the premises demised. For this purpose LESSEE shall carry adequate Work-
man's Compens. ,ivri Insurance for all employees and public liability insurance for
personal injuries/deaths growing out of any one accident or other cause in a. min-
imum sum of One Hundred Thousand ($100,000) Dollars for one person and Three
Uandred Thousand ($300,000) Dollars for two or more persons, and in addition,
shall provide property ckimage liability insurance in a minimum stub of Fifty
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Thousand ($50,000) Dollars for property damage resulting out of anyone accident or
other cause. Said insurance shall be kept in force throughout the Term of this lease
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and shall be procured from an insurance company licensed to do business in Texas.
LESSEE shall provide CITY with a copy of such insurance policies, which policies
shall name CITY as co-insured and shall further provide that the insurance shall not
be cancelled or reduced until a ten day written notice of cancellation or reduction has
been served on the CITY.
ARTICLE Na,
Licenses
LESSEE shall obtain all necessary licenses and permits for the operation
of RESTAURANT and shall operate RESTAURANT in strict compliance with the laws
of the State' of Texas, the Federal Government and the Ordinances of the City of
Wichita Falls and shall pay all fees, taxes and charges assessed under local, State
or Federal Statutes or Ordinances, insofar as they are applicable.
ARTICLE XII.
Parking Validation
LESSEE shall enter into agreement with Airport's Parking Concessionaire,
the Airport Parking Company of America (APCOA), to validate parking tickets for
his patrons who will be entitled to two hours of free parking, provided such patrons
actually spend a minimum of ONE DOLLAR in RESTAURANT, and LESSEE agrees
to pay ten cents for each parking ticket validated. Such agreement between LESSEE
and APCOA will be made in writing and LESSEE shall provide CITY with copy thereof.
ARTICLE MR.
Assignment
LESSEE shall not assign, transfer, sub-lease, pledge, surrender or other-
wise encumber or dispose of this Lease, or any interest in any portion of same,
or permit other i crsons, company, or corporation to occupy these premises with-
out the Fl for written consent of CPrY.
ARTICLE XIV.
Bights of Lessee
LESSEE is hereby granted exclusive Airport right:; to all public feeding,
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airline fopd catering and related service, magazine concession and liquor sales which
are authorized by statute or ordinance. It'is expressly understood, however, that
such rights shall not extend to vending machines as exist in the Administration Build-
ing and Hangar area. It is further understood and agreed that such rights shall not
prevent scheduled airlines serving the Airport from providing private food services
for their employees, passengers and guests in accordance with provisions of their
lease agreements with CITY. LESSEE shall sell no article which CITY deems
ARTICLE XV.
Cancellation
Upon the non-payment of the whole or any part of the amounts agreed upon
in ARTICLE III at the time such payments become due, the filing of a voluntary
petition in bankruptcy, the making of a. general assignment for the benefit of credi-
tors, the occurrence of any act which acts to deprive the LESSEE permanently of the
rights, powers and privileges necessary for the proper conduct and operation of the
RESTAURANT granted herein, the abandonment and discontinuance of the operation
of the RESTAURANT, or upon the non-performance by LESSEE of any of the cove-
nants hereinbefore or hereinafter mentioned, by him to be kept and performed,
CITY may, at its election, cancel this Agreement and re-enter and take.possession
of said premises. LESSEE hereby waives any notice to quit possession of the
premises, or any demand for payment of the amounts agreed upon as the same
become due, or for the performance of any covenants herein, or any demand for
the possession of said premises; provided, however, that the failure of CITY to
declare this Agreement and concessions terminated upon default of LESSEE for
any of the reasons above set out shall not operate to bar, abridge or destroy the
right of CITY to declare this Agreement null and void and at an end upon any sub-
sequent violation of the terms of this Agreement by LESSEE. This Agreement
shell be subject to cancellation by LESSEE should CITY abandon the AIRPORT as
a schedulod airline terminal or should the lawful assumption by the United States
Government or any authorized agency thereof, of the AIRPORT, or any substantial part
thereof, in such nsamier as to restrict LESSEE for a period of at least ninety (90)
days fronn operating thereon. LLSSEE shall, in case of fire or other casualty,
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give }nixnedianptice in writing to CITY, who shall thereupon cause the damage to be,..
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*epaired forth .tiA provided materials, supplies and labor are reasonably available.
If any portion of the premises is rendered unfit for occupancy, the rent shall be appor-
tioned for the period of time required to make repairs according to the part of the
premises, if any, which remains usable by LESSEE. If the entire building shall be
destroyed, then within thirty (30) days after the fire or other casualty, either CITY
or LESSEE may cancel this Lease by notice in writing to the other, effective as of
iiu; uai% ;;f .cf +}'P written notice; exnep+ that the -rent shall be apporuioned
as of the daze of the fire or other casualty.
ARTICLE XVI.
City Agent
CITY hereby designates its Airport Manager, as well as its City Manager
and such official as he may designate, as its official representative, with the full
power to represent CITY in all dealings with LESSEE in connection with the premises
herein leased.
ARTICLE XVII.
Compliance With Rules & Regulations
LESSEE shall, at his own expense and cost, comply with all Federal, State,
and local laws, rules, regulations or ordinances, now or hereafter in effect, which
are applicable to his operation at the Airport. LESSEE recognizes that the Airport
Manager is the representative of the CITY, and agrees to cooperate fully with such
official to promote the efficient conduct of operations at the Airport.
ARTICLE XVIII.
hispection
CITY reserves the right to enter upon the leased prenii.ses at any reasonable
time for the purpose of making any inspection of the physical premises it may deem
expedient to the t,rotjer enforcement of any of the covenants or conditions of this
Atreemei,�.
ARTICLE XIX.
Invczitory
At the commencement and termination of this Agreement, an inventory and
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condition survey shall be made by CITY'S Airport Manager or his representative, and
a representative of LESSEE, on forms to be furnished by CITY which shall show a
complete inventory of-the premises and property belonging to, or under control of
CITY and to be used by LESSEE, and LESSEE agrees to fully account for all such
property placed upon or used in connection with this lease. All property belonging
to CITY shall be returned to CITY in as good condition as received, reasonable wear
and tear excepted.
,A RI'ICLE XX: .
Notification
Notice to City as herein provided shall be sufficient if written notice is
served in person or otherwise sent by registered mail to the Airport Manager, Wichita
Falls Municipal Airport, Route 4, Box 8, Wichita Falls, Texas, or to LESSEE if
written notice is served in person to LESSEE or otherwise sent by registered mail
to LESSEE at P. O. Box 809, Wichita Falls, Texas or at such other places as the
parties may designate hi writing.
ARTICLE X I.
Invalid Provision
It is further expressly understood and agreed by and between the parties
hereto that in the event any covenant, condition or provision herein contained is
held to be invalid by any court of competent jurisdiction, the invalidity of any such
covenant, condition or provision shall in no way affect any other convenants, conditions
or provisions herein contained; provided, however, that the invalidity of any such
covenant, condition or provision shall not be construed so as to materially prejudice
either CITY or the LESSEE in his respective rights and obligations contained in the
valid covepants, conditions or provisions in this agreement.
ARTICLE XXII.
1lcadings
ibe article and paragraph headings are inserted only as a matter of con-
venience and for reference and in no way define, limit or describe the scope or
intent of any provisions of this lease.
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IN WITNESS WHEREOF, the parties have caused this agreement to be executed
as of the day and year first above written.
CITY of WICHITA FALLS, TEXAS
BY
4Ga G. Fox
City Manager
Attest:
Wilma J. Thomas
City Clerk
Approved as to form:
P. Hodge
City Attorne
C <« c l
Ric d O. Morrison
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P.O.Box 1431
April 21, 1980
Mr. Richard O. Morrison
P. 0. Box 809
Wichita Falls, Texas 76307
Re: Skyroom Restaurant at Municipal Airport
Wichita Falls, Texas.
Dear Mr. Morrison:
On April 15 , 1980 , the Board of Aldermen of Wichita Falls
adopted Resolution No. 2505, in which they accepted your
proposal to lease and operate the Skyroom Restaurant. The
lease is submitted to you herewith, for your execution.
As part of the consideration for this lease, you will
perform the following actions which were set out in your
proposal dated April 4, 1980, at your sole cost and expense.
You will thoroughly clean and repaint the kitchen,
scullery, storage, restroom and porch. You will clean, check
and repair as necessary all of the equipment. You will clean,
paint and redecorate the dining room, coffee shop and entry.
The premises have been made to include the entry area
as shown on Exhibit A; therefore, you will move the doorway
to the threshold of the entry area.
You may take possession of the premises prior to the
commencement of the lease, for the purpose of carrying out
these actions. It is understood that it will take approxi-
mately ten working days to accomplish them. We look forward
to your operation of this facility, and hope that it will be
beneficial to all of us.
If this letter correctly sets out our agreement, please
sign the copy in the space indicated below, and return to me
Mr. Richard O. Morrison
April 21, 1980
Page 2
with an executed copy of the lease.
Yours very truly,
Ger �dG. Fox
City Manager
Accepteid-
Richar . Morrison