Res 1515 3/9/1974r t
RESOLUTION NO. 1515
RESOLUTION APPROVING RENTAL CAR LEASE AGREE-
MENT AT MUNICIPAL AIRPORT WITH JOE M. MAYO
AND JOE M. MAYO, JR. , COPARTNERS D/B/A
BUDGET RENT-A-CAR OF WICHITA FALLS.
BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY OF
WICHITA FALLS, TEXAS, THAT:
That certain Rental Car Lease Agreement at Municipal
Airport, a copy of which agreement is attached hereto, be-
tween the City of Wichita Falls and Joe M. Mayo and Joe M.
Mayo, Jr. , copartners, d/b/a Budget Rent-A-Car of Wichita
Falls, is hereby approved, and the City Manager is auth-
orized to execute the same for the City of Wichita Falls.
PASSED AND APPROVED THIS THE 19TH DAY OF MARCH, 1974.
C` M A Y O R
ATTEST:
A4w-zie-d-Y
CITY CLERK
THE STATE OF TEXAS X .
KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF WICHITA X
RENTAL CAR LEASE AGREEMENT
THIS AGREEMENT entered into this 26 day of March 1974
by and between the City of Wichita Falls, Texas, hereinafter called City
or Lessor, and Joe M. Mayo and Joe M. Mayo, Jr. , copartners D/B/A Budget
Rent-A-Car of Wichita Falls, hereinafter called Lessee.
W I T N E S SETH :
WHEREAS, Lessor is the operator of an Airport located in Wichita
Falls, Wichita County, Texas, known as the Wichita Falls Municipal Airport;
hereinafter called Airport; and,
WHEREAS, passenger automobile rental services at the Airport are
essential for proper accommodation of passengers arriving and departing
from said Airport; and,
WHEREAS, the City desires to make said services available at the
Airport; and,
WHEREAS, Lessee is desirous of operating a rental car concession
at the Airport; and, in connection therewith, proposes to furnish clean,
late model cars to be kept at the Airport for the use of airline passengers
and others.
NOW, THEREFORE, in consideration of mutual covenants, promises,
and agreements herein contained, the said parties hereby covenant, promise
and agree with each other as follows:
ARTICLE I.
PREMISES
Lessor does hereby grant to Lessee a non-exclusive rental car
concession, along with others, at the Airport and does demise and lease
to Lessee the space in the Terminal Building at the Airport outlined in
red on the plat attached hereto and designated as Exhibit "A". The parties
covenant and agree that the City, at its sole expense, after giving sixty
60) days notice in writing, may relocate the Lessee's premises in the
Terminal Building if, in the opinion of the Airport Manager, overall
service to the public shall be improved by such relocation.
Lessee shall, at its sole expense, install the necessary counter
at its leased space in the Terminal Building, which counter shall be instal-
led in. a good and workmanlike manner, shall be neat in appearance, shall be
compatible with the Hertz and airline counters, and must be approved by the
Airport Manager. At the termination of this lease, title to such counter
shall remain in Lessee, who may remove same, but Lessee shall restore such
leased space to the same condition that it was in at the beginning of this
lease.
Lessor leases to Lessee two ready car parking spaces at the
location shown on the plat attached hereto and designated as Exhibit "B",
which shall be used by Lessee for the parking of cars which are ready for
delivery to its car rental patrons. Lessee shall provide markers for
these ready car parking spaces similar to the markers which designate the
ready car parking spaces used by other rental car agencies at the Airport.
Lessor leases to Lessee six (6) rental car storage spaces at
that location south of the Terminal Building and west of Hangar No. 1 as
shown on the plat attached hereto and designated as Exhibit "B".
Included in the rights granted hereunder is that of arranging
at the Airport for reservation services for outgoing passengers using the
Airport for use of such passengers in making reservations at a destination
where automobile rental service is furnished by Lessee or members of the
system to which Lessee belongs.
ARTICLE II.
Term
Subject to earlier termination as hereinafter provided, the term
of this agreement shall be for the period from April 1, 1974
through June 30th 1975 The provisions of this lease shall be
subject to renegotiation by the parties on July 1st, 1974.
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ARTICLE III.
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, it will
peacefully surrender possession of the Leased Premises and any improvements
thereon, in good condition, reasonable wear and tear, acts of God and other
casualties excepted, and the City shall have the right to take possession
of the Leased Premises with or without due process of law.
ARTICLE IV.
Rental
Lessee agrees to pay City a minimum concession fee for the rights
and privileges herein granted by the City, as follows:
221.66 per month from the time Lessee commences
operations hereunder through June 30th, 1974; for
the year beginning July 1st, 1974 and ending June
30th, 1975, such fee shall be adjusted on the basis
of the proportional increase or decrease in the
combined gross revenues of all airport rental car
concessions over the preceding twelve month period,
provided that such increase or decrease shall not
exceed ten percent;
or, ten percent of Lessee's annual gross revenues
as herein defined, whichever is greater.
Lessee shall submit by the 20th day following each month of
operation hereunder an accurate statement of the gross revenues for the
preceding month and simultaneously therewith shall pay the City the greater
of (1) ten percent of the gross revenues of (2) the then applicable mini-
mum monthly concession fee. Such statement of gross revenues shall be
certified by a responsible officer of the Lessee.
3-
Within sixty ,(60) days after the termination of this lease agree-
ment, Lessee shall furnish to City a sworn statement, certified by an
independent certified public accountant who shall not be a member of
Lessee's firm or staff, showing the total of gross revenues at the Airport
during the term of this lease agreement. If the aggregate payments made
hereunder shall exceed the greater of (1) the minimum concession fee, or
2) ten percent of said gross revenues, the excess balance shall be paid
to Lessee by City in cash.
Definition of Gross Revenue: "Gross Revenue" as used herein,
shall mean all time and mileage charges due and payable to the lessee from
the operation of its automobile rental service at the Airport, but shall
not include sums recovered from insurance or otherwise for damage to auto-
mobiles or other property, nor any amounts paid by customers to Lessee and
separatedly billed as additional charges for waiver by Lessee of its rights
to recover damages from its customers for damages to or destruction of the
vehicle rented, nor any tax levied by any competent governmental authority
which is separately stated and collected from Lessee's customers. Except
as otherwise provided herein, Gross Revenues shall include all time and
mileage charges due and payable to the Lessee on all vehicles which are
rented at or taken by a customer from theAirport, regardless of what section
or establishment of Lessee may receive the automobile or the rent therefore
upon return of the automobile by the customer including vehicles taken by a
customer in exchange for a vehicle originally rented at or taken by a
customer from the Airport.
It is understood that Lessee may possess a U-Drive-It franchise to
operate from other locations within the City and that revenues from such
operation are excluded from Lessee's Gross Revenues. It shall be expressly
understood, however, that revenues derived from the rental of any vehicle
taken from the Airport and delivered to a customer off the Airport shall be
included in Lessee's Gross Revenues, regardless of the location at which
such vehicle is delivered or the rental contract is consummated.
4-
The Lessee shall have the right to conduct part of its operation
on a credit basis; provided, however, the risk of such operation shall be
borne solely by the Lessee; and the Lessee shall report all income, both
cash and credit, in its monthly statements of Gross Revenue. Credit given
to Lessee's customers for such things as out-of-pocket purchase for gas,
oil, or emergency services, and deposits regardless of where made, shall
be included in computing Gross Revenues.
The term "Gross Revenues", as used herein, shall also include,
in addition to the above, amounts which would be due to the Lessee on the
basis of furnishing an automobile to the user complete with motor fuel,
normal primary liability insurance coverage, and other items customarily
supplied by other automobile rental concessionaires at the Airport.
Any moneys recovered from insurance companies by Lessee for
damage to Lessee's property, or sums recovered through insurance or other-
wise for damage to vehicles, shall be excluded from Gross Revenues.
Federal, State, County and municipal sales taxes or other similar taxes
separately stated and collected from customers now or hereafter levied or
imposed shall likewise be excluded from "Gross Revenues." No deductions
shall be allowed from "Gross Revenues" for the payment of State franchise
taxes or taxes levied on concession activities, facilities, equipment or
real or personal property of Lessee nor for the payment of such City ad
valorem taxes and license fees as required by the operation of a Rental
Car franchise at a location other than the Airport. The Lessee may grant
local or national discounts to customers.
Rental car storage fee; Lessee shall additionally, by the 20th
day following each month of operation hereunder, pay City for rental of its
six (6) rental car storage spaces the sum of $6.00, being $1.00 per storage
space per month; if the rental car storage fee charged to the other rental
car agencies at the Airport is increased on July 1st, 1974, this fee pay-
able by Lessee shall be increased at the same rate.
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ARTICLE V.
Records
Lessee shall at all times during the term hereof keep true, accu-
rate, complete and auditable records, books and accounts, in a form satis-
factory to the City, of all business conducted by it at the Airport, and
Lessee further agrees that the City shall have the right, through its duly
authorized agents or representatives, to examine and audit all pertinent
books, accounts and records at any and all reasonable times for the purpose
of determining the accuracy of the reports required to be made by the Lessee
under the provisions of this Agreement. All airport rental contracts shall
be executed on appropriately marked and numerically sequenced forms of
Lessee.
Articles or services furnished to any person in payment of exchange
for value received from such other person, shall be deemed to be a cash sale
at market value within the meaning of this Article. The making of any will-
fully false reports or revenue by Lessee shall be grounds for the immediate
cancellation and termination of this Agreement at the option of the City.
ARTICLE VI.
Taxes, Fees, Licenses
Lessee covenants and agrees to pay promptly all lawful general
taxes, special assessments, excises, license fees, permit fees, and utility
service charges of whatever nature, applicable to its operation at the
Airport and to take out and keep current, all licenses, municipal, state
or federal, required for the conduct of its business at and upon the Air-
port, and further convenants and agrees not to permit any of said taxes,
assessments, excises, fees or charges to become delinquent.
ARTICLE VII.
Late Rental Penalty
All unpaid rent and fee money due the City hereunder shall bear
a service charge of one and one-half percent (1-1/2%) per month if same
is not paid and received by the City within ten (10) days after its due
date, and Lessee agrees that it shall pay and discharge all costs and
expenses including attorney's fees incurred or expended by the City in
collection of said delinquent amounts due.
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ARTICLE VIII.
Performance Bond
Lessee agrees to furnish a bond to the City in the principle amount
of TWO THOUSAND DOLLARS ($2,000). Such bond shall guarantee the payment of
the Concession Fee, rent and Lessee's other obligations to pay as provided
herein. The bond shall be in a form agreeable to the City and shall be
kept in full force and effect during the term hereof.
ARTICLE IX.
Exclusive Rights
It is understood and agreed that nothing herein contained shall
be construed to grant or authorize the granting of an exclusive right, except
that Lessee has the exclusive right to use the premises leased herein.
City further agrees that during the life of this Agreement it
will not execute a similar Agreement for like services and facilities with
any other company or organization on terms more advantageous than those
accorded to Lessee. This covenant not to grant more favorable terms to
others is hereby acknowledged by the City and Lessee to be limited to 1)
the percentage of gross revenues to be paid as a concession fee, 2) the
minimum annual concession fee established by this Agreement, and 3) the
number and size of counter areas in the Terminal Building.
ARTICLE X.
Minimum Standards
Lessee convenants and agrees it shall be open for and shall con-
duct business and furnish services at the Airport during the hours of
regularly scheduled air service to the Airport or at such lesser times
that Lessee and the Airport Manager shall mutually agree upon as being
sufficient to properly serve the needs of the public.
Lessee shall furnish high quality, prompt and efficient service
hereunder adequate to meet all reasonable demands therefor at the Airport;
shall furnish said services on a fair, equal and non-discriminatory basis
to all categories of qualified users thereof; and shall charge fair,
reasonable and non-discriminatory prices charged by Concessionaires at
airports of comparable passenger enplanements.
7-
Lessee shall prepare a schedule of prices and rates. Such
schedules shall be filed in the office of the Airport Manager and printed
copies of such schedule shall be available at the Airport at all times for
the use of Lessee's customers.
Lessee shall provide and maintain the rental automobiles made
available hereunder at its sole expense, in good operative order, free
from known mechanical defects, and in a clean, neat and attractive condi-
tion inside and outside.
Lessee shall base at the Airport only new or late model automobiles
in such number as is required by the demand for same.
A copy of the rental agreement form covering the use of Lessee's
automobiles shall at all times be kept on file in the office of the Air-
port Manager.
Lessee covenants that it shall take all reasonable measures in
every proper manner to maintain, develop and increase the business con-
ducted by it hereunder, and Lessee shall not divert or cause or allow any
business to be diverted from the Airport. Any action taken by Lessee to
induce its patrons to rent or receive vehicles in such a manner and at
such places so as to diminish the Gross Revenue of the Lessee under this
Agreement shall constitute a material breach hereof and a cause for the
termination of this Agreement by the City.
Lessee's personnel performing services hereunder shall be distinc-
tively uniformed, neat, clean and courteous. The Lessee's oral solicita-
tion of business at the Airport shall be confined to its leased area and
Lessee shall prohibit and restrain it agents, servants and employees
from loud, noisy, boisterous or otherwise objectionable promotion of the
services offered, and upon objection from the Airport Manager concerning
the conduct or appearance of any such persons, shall immediately take all
steps necessary to remove the cause of the objection.
Lessee shall not commit any nuisance on the Leased Premises or
Airport nor do, or permit to be done anything which may result in the creation
or commission of a nuisance thereon; nor install, maintain or operate or per-
mit the installation, maintenance or operation on the Leased Premises of any
vending machine or devices to dispense any products whatsoever without the
written permission of the Airport Manager.
8-
ARTICLE XI.
Maintenance and Improvements
Lessee shall make no material removals, additions or alterations
to its Terminal Building leased premises without the prior written approval
of the Airport Manager. Lessee shall maintain in good repair and in neat
and clean condition all improvements, construction or furniture, furnish-
ings or equipment placed on such premises. Lessee shall be responsible
for the care of the area designated for its use and shall permit no damage
to existing improvements. No spikes, hooks, nails, or any other devices
shall be driven or screwed into the walls, woodwork or other surfaces of
the Terminal Building leased premises.
Lessee agrees, at its own expense, to maintain the Terminal Build-
ing leased premises in a neat and orderly condition, free from all danger
of fire and personal injury and to refrain from doing anything to destroy
or damage the Terminal Building leased premises.
No sign or advertisement of the Lessee or others shall be affixed,
kept or distributed on any part of the Terminal Building leased premises
except only if such color, size, wording, style and material and method
of attachment shall be first approved in writing by the Airport Manager.
The City reserves the right to remove, without notice to Lessee and at the
expense of Lessee, all signs or advertisements not having prior approval
in writing. All signs shall be in good taste and shall be for the purpose
of either identifying the premises as being those of the Lessee or provid-
ing directions for Lessee's patrons. No advertisements or rate schedules
of the Lessee shall be posted to public view on the Terminal Building leased
premises, except that this prohibition shall not prevent the Lessee from
displaying for distribution its pocket-sized printed brochures of rate
schedules for distribution to the public. At the expiration of this Agree-
ment, the Lessee shall remove all its signs or advertisements and restore
all points of attachment to conform to the appearance and condition of the
grounding surfaces.
9-
ARTICLE XII.
Heating, Air Conditioning and Janitorial Services
City shall furnish heating and air-conditioning to the Terminal
Building leased premises in such degree as it is furnished to other tenants
in the Terminal Building, provided that the City shall not be liable for
any failure to supply the same when such failure is not due to negligence
on its part. General area light will be furnished by the City through the
fixtures installed for the general lighting of the area of the Terminal
Building leased premises.
City shall provide janitor service for the leased premises in the
Terminal Building and shall provide for removal of trash and will keep such
area clean, neat and attractive.
ARTICLE XIII.
Indemnification
Lessee shall be solely responsible for the conduct of its opera-
tors, agents, employees and representatives, and agrees to indemnify, defend,
hold and save the City, its authorized agents, officers, representatives and
employees, harmless from each and every claim and demand of whatever *nature,
and against any and all penalties, liability and annoyance or loss, result-
ing from claims or court action of any nature claimed to have arisen directly
or indirectly out of acts of Lessee, or its agents, servants or employees
under this Agreement or by reason of any act, omission or conduct of such
person.
ARTICLE XIV.
Insurance
Lessee agrees to maintain throughout the Term of this Agreement,
the following motor vehicle liability insurance:
Bodily Injury 100,000 each person
300,000 each accident
Property Damage 25,000 each accident
Lessee shall provide such insurance at its own expense and such
insurance shall be placed with a company authorized to do business in the
State of Texas. Such policies of insurance shall protect City and Lessee
against any and all liability for death, injury, loss or damage against
10-
which Lessee has elsewhere in this agreement undertaken to save and hold
the City and its authorized agents, officers, representatives and employees
harmless from and against any and all penalties, liability and annoyance
and loss resulting from claims or court action of any nature and arising
directly or indirectly out of the acts of Lessee, its agents, servants,
guests, employees, business visitors or others under this agreement or by
result of any act or omission of such persons.
The amounts of such insurance as specified above shall not be
deemed a limitation of Lessee's agreement to save and hold the City harm-
less and if Lessee becomes liable for an amount in excess of the insurance,
Lessee will save and hold the City harmless as the holder thereof. Copies
of all such policies of insurance shall be delivered to City.
ARTICLE XV.
City Agent
City hereby designates its Airport Manager, as well as, its City
Manager and such official as he may designate, as its official representa-
tive, with the full power to represent City in all dealings with Lessee
in connection with the premises herein leased.
ARTICLE XVI.
Compliance with Rules & Regulations
Lessee shall, at its 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 its operation at the Airport. Lessee recog-
nizes 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 XVII.
Inspection
City reserves the right to enter upon the leased premises at any
reasonable time for the purpose of making any inspection of the physical
premises it may deem expedient to the proper enforcement of any of the
convenants or conditions of this Agreement.
11-
ARTICLE XVIII.
Assignment
Lessee shall not assign or transfer this agreement nor any privi-
leges hereunder and shall not assign or sublet or mortgage all or any part
of the premises leased hereby, whether voluntarily or involuntarily, with-
out the prior written consent of the City. If Lessee, without securing
prior written approval of the City, attempts to effect such a transfer,
assignment, sublease or mortgage, or if a transfer occurs by operation of
law, City may terminate this agreement upon written notice to Lessee. If
control of Lessee's business or corporation is transferred to other parties
by virtue of the sale of stock, without the prior written consent of City,
this shall be considered an assignment of the lease, and City may terminate
this agreement upon written notice to Lessee.
ARTICLE XIX.
Suspension/Termination
Lessee understands and agrees that all rights, privileges and
interests acquired herein, following written notice of sixty (60) days, may
be altered or finally terminated upon payment of just compensation to Lessee,
if such suspension or termination is found by City, acting in good faith, to
be necessary to secure Federal financial aid for the development of the
Airport.
Should Lessee fail to pay the rent due hereunder within fifteen
15) days after same shall become due, or permit any insurance coverage
required under this agreement to lapse, City shall have the option, without
any legal proceedings or notice, to declare this lease terminated, cancel
the same and re-enter and take possession of the premises, and in such
event, Lessee agrees to deliver possession of the same peaceably and relin-
quish all rights incident thereto.
City shall have the right, but not the obligation, to terminate
this Agreement in its entirety immediately upon the happening of any of the
following events:
12-
t
a. Filing of a petition, voluntarily or involuntarily, for adjudi-
cation of Lessee as a bankrupt.
b. The making by Lessee of any general assignment for the benefit
of creditors.
c. The failure by Lessee to perform, keep and observe any and all
of the terms, covenants, and conditions herein contained on the part of the
Lessee to be performed, kept, or observed after the expiration of fifteen
15) days from the date written notice has been given to Lessee by City to
correct such default or breach (except, however, failure of Lessee to provide
insurance as required herein will give City the right to terminate this lease
immediately without the necessity of giving Lessee 15 days written notice) .
City may terminate this lease by written notice to Lessee in the
event of the assumption by the United States Government or any authorized
agency thereof of the operation, control or use of said Municipal Airport,
Civil Terminal Building and facilities or any substantial part or parts
thereof in such manner as to prevent the City, for a period of at least
ninety (90) days, from performance of its obligations under the terms, covenants
and conditions hereof to be performed, kept and observed by City.
No waiver by City at any time of any of the terms, conditions, or
covenants of this Agreement shall be deemed or taken as a waiver at any time
thereafter of the same, or of any other terms, conditions, or covenants herein
contained, nor of the strict and prompt performance thereof by Lessee.
In the event that the United States Government or any of its agencies
shall occupy the airport or any substantial part thereof to such an extent as
to materially interfere with Lessee's operation, or in the event of destruction
by fire or other cause of all or a material portion of the airport or airport
facilities, or if Lessee's operations shall for any reason, similar or dis-
similar, be materially interfered with for a period in excess of ninety (90)
days, or in the event of any national emergency wherein there is a curtailment,
either by executive decree or legislative action, of the use of motor vehicles
or airplanes by the general public, or a limitation of the supply of gasoline
available for general use, then, and in any of those events, Lessee shall have
13-
the right upon written notice to Lessor to terminate this agreement and Lessee's
further obligations hereunder, or at its option, to suspend this agreement for
the periods of such disability.
Also, should Lessee lose his present franchise to operate a Car
Rental Service, or should his license or privilege of operating a rental car
service in the City of Wichita Falls be cancelled by the City, then Lessee
may, at its option, terminate this Agreement as of the last day of the month
in which such event occurs.
ARTICLE XX.
Untenantable Premises
Lessee shall, in case of fire or other casualty, give immediate
notice in writing to City, who shall thereupon cause the damage to be repaired
forthwith, provided materials, supplies and labor are reasonably available;
if any portion of the premises is rendered unfit for occupancy, the rent
shall be apportioned for the period of time required to make the repairs,
according to theg 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 Lessor or Lessee may cancel this lease by
notice in writing to the other, effective as of the date of the mailing of
the written notice, except that the rent shall be apportioned as of the date
of the fire or other casualty.
ARTICLE XXI.
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 72-E, Wichita
Falls, Texas 76301, or to Lessee if written notice is served in person to
Joe M. Mayo, Jr. or otherwise sent by registered mail to Lessee at P.O. Box
5168, Wichita Falls, Texas 76307 or at such other places as the parties may
designate in writing.
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ARTICLE XXII.
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 covenants, conditions or provisions herein contained;
provided however, that the invalidity of any such convenant, condition or
provision shall not be construed so as to materially prejudice either City
or the Lessee in their respective rights and obligations contained in the
valid covenants, conditions or provisions in this Agreement.
ARTICLE XXIII.
Headings
The article and paragraph headings are inserted only as a matter
of convenience and for reference and in no way define, limit or describe
the scope or intent of any provisions of this lease.
IN WITNESS WHEREOF, the parties have caused this agreement to be
executed as of the day and year first above written.
LESSOR:
CITY OF WICHITA FALLS
Cd) -jl:LTA41
BY:
GerarG. Fox, Ci Manager
ATTEST:
7-7.7?-4-__-' (-- ,76---,7-.)--t,?,./1---9
Wilma J. Thomas, City Clerk
LESSEE:
J H. Mayo,Copartne f/
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Jov . Mayo, Jr. ,:,-,G p_ ner
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Wichita Falls
APPROVED AS TO FORM:
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