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Res 1518 3/9/1974RESOLUTION NO. 4'/f RESOLUTION APPROVING AGREEMENT AND LEASE AT MUNICIPAL AIRPORT WITH TRICON INTER- NATIONAL AIRLINES , INC. BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY OF WICHITA FALLS , TEXAS , THAT; That certain agreement and lease of premises at Municipal Airport, a copy of such agreement and lease being attached hereto, between the City of Wichita Falls and Tricon International Airlines, Inc. 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.// Siii/ /. .... MAYOR ATTEST: CITY CLERK AGREEMENT AND LEASE OF PREMISES AT WICHITA FALLS MUNICIPAL AIRPORT THIS AGREEMENT, made and entered into as of the 19th day of March 1974 by and between the City of Wichita Falls, a municipal corporation of the State of Texas (hereinafter referred to as the 'City') and Tricon International Airlines, Inc. , a corporation organized and existing under the laws of the State of Texas (hereinafter referred to as the 'Airline') . W I T N E S S E T H WHEREAS, the United. States Air Force owns and operates a military air field known as Sheppard Air Force Base located in the County of Wichita, State of Texas which Air Force Base depicted in Exhibit A; and WHEREAS, the City leases a tract of land on Sheppard Air Force Base on which Wichita Falls Municipal Airport is located, which airport is shown in Exhibit B. WHEREAS, the City has entered into an Agreement with the United States Air Force which permits upon specified terms and under specified conditions the use by civil aircraft of Sheppard Air Force Base and necessary appurtenances at the Air Force Base; and WHEREAS, the Airline is engaged in the business of Interstate air transportation with respect to cargo, freight and property; and WHEREAS, the parties hereto desire to enter into an agreement for the use of premises and facilities on said Air Force Base and into an agreement for the lease and use of premises and facilities at said Airport all as more fully hereinafter set forth; NOW, THEREFORE, the parties hereto, for and in consideration of the rents, covenants and agreements contained herein, agree as follows: ARTICLE I - Premises City does hereby demise and let unto Airline, and Airline does hereby hire and take from City, the following premises and facilities, rights, licenses and privileges on and in connection with the property and improvements specified at said Air Force Base and Airport, as more particularly hereinafter set forth: A) Use of Air Force Base and Airport Areas : The use, as authorized by that certain "Department of the Air Force Lease of Property on Sheppard Air Force Base, T:oxas" .between the Secretary of the Air Force and the City of Wichita Falls, Texas, effective May 15, 1959 and designated Contract DA-41-443-eng-5551 which is incorporated herein by reference, in common with others authorized so to do, of said Air Force Base and Airport, which use shall consist of: 1) The operation of a transportation system by aircraft for the carriage of cargo, freight and property hereinafter referred to as 'air transportation' . 2) The repairing, maintaining, conditioning, servicing and parking of aircraft or other equipment of Airline. 3) The training at the Air Force Base and Airport of person- nel in the employ of or to be employed by Airline, and the testing of air- craft and other equipment, it being understood that such training and testing shall be incident to the operation by Airline of its air transportation system; 4) The right to load and unload cargo, freight and property at said Airport by such motor cars, trucks or other means of conveyance as Airline may desire or require in the operation of its air transportation system, with the right to designate the particular carrier or carriers who shall or may transport said cargo, freight and property to and from the Airport; provided, however, that such carrier or carriers may be required by City to comply with rules and regulations of City and to pay to City such fees as are provided for in Article V hereof; and provided further that the foregoing shall not be construed as imposing upon City any obligation other than the granting of such right. All such loading and unloading operations shall be conducted in accordance with rules and regulations of the City; 5) The right to install and operate advertising signs on the leased premises, the general type, quantity and design of such signs to be subject to the approval of City's Airport Manager. 6) The rights and privileges granted Airline under this Article I with respect to the performance of ground services and activity 2- t in connection with its air transportation operations at the Air Force Base and Airport may be exercised by Airline for and on behalf of any other air transportation company or companies authorized by City to use the Air Force Base and Airport. Such rights and privileges shall be deemed to include all activities incidental to the receipt, dispatch, loading, un- loading and storage of cargo, freight and property, and all ramp, repair, maintenance and dispatching services incidental to the operation of air- craft at the Air Force Base and Airport and such storage and fuel servicing as shall be authorized or furnished by Fixed Base Operators having a contract with City. Such rights and privileges shall be deemed to include all air- line aircraft operated, as well as, owned by Airline, subject to the limita- tions specified in Article VII , provided however that the provisions of this contract shall not be construed as authorizing Charter services by Airline and such services are expressly prohibited from the Airport except those Charter services by Airline utilizing aircraft used in Airlines' regularly scheduled cargo services to the Airport and such Charter services as authorized above shall be limited to Cargo only. B) Cargo Loading Dock: The use, in common with other scheduled airlines of the outside loading dock. C) Space in Freight Building: The use of approximately 342 square feet of space within said building as depicted on Exhibit C. Airline shall be authorized to provide a fenced area within its authorized space, however, Airline understands and agrees that vehicular and pedestrian access will be provided to users of such Freight Building. Plans and speci- ficiations for such fencing as Airline shall desire to erect shall be subject to the approval of the Airport Manager. D) Parking Space: The use by Airline employees, in common with others, of such vehicular parking space as is provided for employees subject to the Rules and Regulations as are applicable to parking at said Airport. E) Right of Access, Ingress and Egress : The full, free and un- restricted access and ingress to and egress from the premises outlined in A) through (D)' above for Airline, its employees, guests patrons, invitees, suppliers of materials and furnishers of service, its or their aircraft, equipment, vehicles, machinery and other property. 3- ARTICLE II - Term Airline shall have and hold -said premises, facilities, rights, licenses and privileges set forth. in Paragraphs (A) to (E) inclusive of ARTICLE I for an initial term of five (5) years, beginning April 1, 1974 and ending March 30, 1979, except that the rents and fees hereinafter provided in ARTICLE III , Paragraphs (A) thru (B) shall be subject to renegotiation upon thirty (30) days written notice by City after March 30, 1976. On expiration of this initial five (5) year term, Airline shall have two successive one (1) year options to extend this lease agreement. ARTICLE III - Landing, Ramp and Terminal Fees A) Landing Fees : Airline shall pay City $2. 50 per scheduled trip landing as reflected in the schedule published by City provided that should airline utilize aircraft of over 30,000 pounds in such service, Airline, in lieu of the above specified fee, shall pay to City a landing fee at the rate currently charged other airlines serving the Airport. This fee shall further be subject to renegotiation, if requested by City in writing, at any time that the United States terminates use of Sheppard Air Force Base as a military installation, as provided for in section 25g of Contract DA-41-443-eng-5551. In this event, the parties agree to attempt, in good faith and immediately, to reach an agreement as to the landing fee to be paid by Airline, effective from and after, the date City assumes responsibility for control and maintenance of the landing areas , runways, taxiways and necessary appurtenances. In the event the parties are unable to reach such agreement within sixty (60) days from the date of receipt by Airline of City's request for renegotiation, City may cancel and terminate this agreement by thirty (30) days written notice to Airline. The Airline shall, at least five (5) days in advance of any schedule change, submit to City a published schedule showing the numbers of Airline's scheduled trip landings, as outlined above at the Air Force Base. City shall, following the end of each month, transmit to Airline a statement of rentals, fees and charges incurred by Airline during said month as above and hereinafter provided and same shall be paid by Airline within ten (10) days following receipt of such statement. All unpaid monies due the City hereunder shall bear a service charge of one and one-half (11/2%) percent 4- per month' if same is not paid and received by City within ten (10) days after receipt of City's monthly statement. Airline 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. B) Rental With Respect to Terminal Freight Building Airline will pay the City a monthly rental for the interior cargo space cited in Article I (C) above at the rate of $3.47 per square foot per annum; which rental shall be paid monthly. Terminal Freight Building Monthly Rental : Monthly Monthly Charges Charges Effective Effective Apr 1, 1974 Jul 1 , 1974 Freight Space (342 sf @ $2.50/sf/a) 71. 25 342 sf @ $3.47/sf/a) 98.89 ARTICLE 1V - Right To Lease Property City represents that it has the right, power and authority to enter into this agreement with respect to said property specified herein as the Air Force Base and Airport, together with all the facilities. ARTICLE V - Other Charges or Fees It is agreed that no charges, fees, or tolls, other than herein expressly provided for, shall be charged or collected by City or by any other person, firm or corporation presently or in the future having any interest in said Air Force Base and Airport or any part thereof, except • as to the right of Fixed Base Operators operating under contract with City to charge for storage, gasoline, fuel or services from Airline; provided however, that the City may levy a reasonable charge against any taxi, limousine or other company or operator carrying cargo, property or freight to and from the Airport. It shall be expressly understood, however, that no charge shall be assessed against Airline for its transportation of cargo, property or freight by its own vehicles. 5- IL ARTICLE Vi - Maintenance and Operation of Airport City agrees that it will maintain the said Airport and appurtenances in- such manner as to' comply with all appropriate local , State and Federal regulatory authorities having jurisdiction thereof. ' City agrees during the term of this agreement to maintain and operate and to keep in good repair said Airport, including Terminal Freight Building and the appurtenances, .facilities and services now or hereafter connected therewith, including all appurtenances and facilities which the City should undertake to construct, furnish or supply and to keep said Airport free from obstructions for the safe convenient and proper use thereof by Airline. It is expressly understood that City will provide and supply adequate heat, lights and electricity within the Terminal Freight Building. ARTICLE VII - Rules And Regulations Airline covenants and agrees to observe and obey and to require all its employees to observe and obey, all reasonable rules. and regulations which may from time to time during the term hereof be promulgated and en- forced by City for the conduct and operation of the Air Force Base and Airport. Airline shall park, load and unload its aircraft at the extreme east side of the Public Ramp provided that should Airline utilize air- craft over 25,000 pounds, the adjacent portion of the commercial ramp may be utilized. Airline shall provide its own personnel to transport, load and unload cargo, freight and property to/from and between the Freight Building and its aircraft. ARTICLE VIII - Damage Or Destruction Of Building If any building in which Airline occupies exclusive space here- under shall be partially damaged by fire or other casualty but not rendered untenantable, the same may be repaired by the City at its own cost and ex- pense. If the damage shall be so extensive as to render the premises un- tenantable the rent payable hereunder with respect to Airline's exclusive space and the services therewith shall be proportionately paid up to the time of such damage and shall thenceforth cease until such time as the 6- I yr premises shall be in order or until suitable space be provided. In case said building is completely destroyed by fire or other casualty or so damaged that it will remain untenantable for more than sixty (60) days, at the option of the City, either 1) said building shall be repaired or i reconstructed and the rent payable hereunder with respect to Airline's exclusive space and the services therewith in said building shall be proportionately paid up to the time of such damage or destruction and shall thenceforth cease until such time as the premises shall be put in order; or 2) within sixty (60) days after the time of such damage or destruction and before the premises shall be put in order, the City may give notice of its intention to cancel this lease or to cancel such part of this lease as relates only to said building, in which case this lease or such part of this lease as relates only to said building, shall forth- with cease and terminate. ARTICLE IX - Cancellation By City This contract is entered into by City for the express purpose of furthering and promoting air commerce to the community and with the under- standing that Airline will provide its service in a manner consistent with the development of such air commerce. It is specifically understood by the parties hereto that Airline will operate its scheduled service to the community by air as intended by its certification by the State and/or Federal Regulating Authorities. This contract is further entered into upon the warranty to City by Airline that it will promptly discharge all financial responsibilities which accrue under this contract to City; that it will promptly pay all accounts, if any, owing to Fixed Base and other operators at the Airport; and that it will, during the term of this lease, maintain a position of financial responsibility to its creditors, as well as to the City. The City reserves the right to cancel this agreement upon thirty (30) days written notice at any time the City Manager deems the continuance of the Airline is not in the best interest of the City or the public and to support such other airline as City deems appropriate in obtaining the necessary certificates to operate over the same or other routes served by Airline. 7- Failure on the part of Airline to pay the rent hereunder within fifteen days after same shall become due, time being of the essence, shall authorize City, at its option and without any legal proceedings, or notice, to declare this lease terminated, cancel the same, and re-enter and take possession of the premises and:;.to terminate the right of Airline to utilize Airport facilities and the Airport. Further, should Airline de fault sin the performance of any of its other duties or covenants contained herein and fail to cure such default within fifteen days after written notice thereon from City, then City may, at its option terminate all rights, privileges and interests of Airline and repossess all premises herein leased, and in such event, Airline agrees to deliver possession of the same peace- ably and relinquish all rights incident thereto. In the event that Airline shall file a voluntary petition in bank- ruptcy or that proceedings in bankruptcy shall be instituted against it or that the Court shall take jurisdiction of Airline and its assets pursuant to proceedings brought under the provisions of. any Federal reorganization act, or that a receiver of Airline's assets shall be appointed, or that Airline shall be divested of its estate herein by other operation of law or that Airline shall fail to perform, keep and observe any of the terms, covenants or conditions herein contained on the part of Airline to be performed, kept or observed, the City may give Airline notice in writing of intent to terminate this lease and the term hereby demised shall thereupon cease. The acceptance of rental by City for any period or periods after a default of any term, covenant or condition herein contained to be per- formed, kept and observed by Airline shall not be deemed a waiver of any right on the part of City to cancel this lease for failure by Airline so to perform, keep or observe any of the terms, covenants or conditions hereof to be performed, kept and observed. No waiver of default by City of any of the terms , covenants or conditions hereof to be performed, kept and observed by Airline shall be construed to be or act as a waiver of any subsequent default of any of the terms, covenants and conditions herein contained to be performed, kept and observed by Airline. City may also terminate this lease by written notice to Airline in the event of the assumption by the United States Government or any 8- authorized agency thereof of the operation, control or use of said Air Force Base, Airport 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. Issuance by any court of competent jurisdiction of an injunction in any way preventing or restraining the use of said Air Force Base or Airport or any part thereof for airport purposes, and the remaining in force of such injunction for a period of at least fifteen (15) days; or any action of the Federal Aviation Administration, Civil Aeronautics Board or Texas Aeronautics Commission terminating the right of Airline to operate into, from or through said Air Force Base such aircraft as Airline may reason- ably desire to operate thereon shall authorize City to terminate such lease on written notice to Airline. ARTICLE X - Cancellation by Airline Airline, in addition to any right of cancellation or any other right herein given to airline, may cancel this agreement, in whole or only insofar as it relates to any building and terminate all or any of its obligations hereunder at any time, by thirty (30) days written notice to City, upon or after the happening of any one of the following events. A) Issuance by any court of competent jurisdiction of an injunc- tion in any way preventing or restraining the use of said Air Force Base or Airport or any part thereof for airport purposes, and the remaining in force of such injunction for a period of at least fifteen (15) days; B) The failure or refusal of the Federal Aviation Administration or the Texas Aeronautics Commission to continue to grant Airline the right to operate into and from said Air Force Base; C) Any action of the Federal Aviation Administration, Civil Aeronautics Board or Texas Aeronautics Commission refusing to permit Air- line to operate into, from or through said Air Force Base such aircraft as Airline may reasonably desire to operate thereon; D) The breach by City of any of the covenants or agreements herein contained and the failure of City to remedy such breach for a period of thirty (30) days after receipt of a written notice of the existence of such breach; 9- Y y E) The inability of Airline to use the Air. Force Base or any of the premises, facilities, rights, licenses , services or privileges leased to Airline hereunder for a period in excess of thirty (30) days because of any law or any order, rule or regulation of any appropriate govern- mental authority having jurisdiction over the operations of Airline, or because of war, earthquake or other casualty; F) The assumption by the United. States Government or any author- ized agency thereof of the use, maintenance or operation of said Air Force Base, Airport and facilities or any substantial part or parts thereof in such manner as to prevent the full use and enjoyment by the Airline of its rights under this lease; G) The erection of any obstacle on or in the vicinity of said Air Force Base which would occasion a cancellation of Airline's operating certificate or similar authorization establishing minimum safety standards for the operations of Airline. H) If by reason of any action or non-action of the Federal Aviation Administration or other governmental agency having jurisdiction to grant a certificate of convenience and necessity or similar document authorizing the Airline to operate aircraft in or out of the Air Force Base (including action in the nature of alteration, amendment, modification, suspension, cancellation or revocation of any such certificate or document) , the Airline shall cease to have authority to operate aircraft in or out of the Air Force Base pursuant to such certificate or document. ARTICLE XI - Indemnity Airline agrees to indemnify and hold City harmless from and against all liability for injuries to persons or damage to property caused by Air- line's negligent use or occupancy of the Air Force Base and Airport or negligent operation of aircraft, provided that City shall give to Airline prompt and timely notice of any claim made or suit instituted which in any way, directly or indirectly, contingently or otherwise, affects or might affect Airline. Airline shall maintain during the term of this lease, at its own expense, standard form policies of insurance which shall name the 10- City as co-insured and copies of which shall be provided City as follows: Comprehensive General Liability for Premises and Operations : Bodily Injury (each accident)100,000 each person 300,000 each accident Property Damage 300,000 each accident Aircraft Liability: Bodily Injury (each accident)100,000 each person 300,000 each accident Property Damage 300,000 each accident Motor Vehicle Liability: Bodily Injury (each accident)100,000 each person 300,000 each accident Property Damage 300,000 each accident Limits as required above are considered to be minimum requirements only and Airline in the public weal is encouraged to carry higher limits. ARTICLE XII - Quiet Enjoyment City agrees that, on payment of the rent and performance of the covenants and agreements on the part of the Airline to be performed here- under, Airline shall peaceably have and enjoy the leased premises and all the rights and privileges of said Air Force Base and Airport, its appurtenances and facilities, as herein provided. ARTICLE XIII - Surrender of Possession Airline agrees to yield and deliver to City possession of the premises leased herein at the termination of this lease, by expiration or otherwise, or of any renewal or extension thereof, in good condition in accordance with its express obligations hereunder only, except for damage due to reasonable wear and tear, fire and other casualty. ARTICLE XIV - Assignment, Tranfer, and Compliance A) Airline shall not assign or transfer this agreement nor any privileges hereunder and shall not assign or sublet or mortgage all or any part of the premises hereby leased, whether voluntarily or involuntarily, without the prior written consent of the City. If Airline, without securing prior written approval of City, attempts to effect such a transfer, assign- ment or mortgage, or iE a transfer occurs by operation of law, City may 11- I. terminate this agreement upon written notice to Airline. Foreclosure of a mortgage, whether pre-existing or hereafter created, on controlling interest in stock of Airline shall be considered a transfer by operation of law. B) Operation of Premises for Use and Benefit of Public: Airline agrees to furnish good, prompt and efficient service adequate to meet all demands for its service at the Airport and to furnish said service on a fair, equal and non-discriminatory basis to all users thereof, and to charge fair, reasonable, and non-discriminatory prices for such service. C) Non-Discrimination: Airline, its agents and employees will not discriminate against any person or class of persons by reason of sex, race, color, creed or national origin in providing any services or in the use of any of its facilities provided for the public, in any manner pro- hibited by Part 21 of the Federal Transportation Regulations. Airline further agrees to comply with such enforcement procedures as the United States might demand that• the City take in order to comply with the sponsor's assurances. D) Non-Exclusive Rights Clause: Airline understands and agrees that nothing herein contained shall be construed to grant or authorize the granting of an exclusive right. ARTICLE XV - Improvements Airline shall not make or permit any additions, improvements or alterations to the leased area without prior written consent of the City of Wichita Falls. Any such additions, improvements or alterations made with consent of the City shall be solely at the expense of Airline and, unless such consent specifically provides that title to the addition or improvement so made shall vest with Airline, title thereto shall at all times remain with the City and such additions or improvements shall be subject to all terms and conditions of this instrument. ARTICLE XVI - Performance Bond Prior to commencement of this lease, Airline shall deliver to City a Corporate Performance Bond with a surety satisfactory to the City in the amount of Two Thousand Dollars ($2,000) , conditioned on the full and faithful performance of all the terms, conditions and covenants of this lease and shall be kept in full force and effect for the completepe term of this lease. At Airline's option, in lieu of said Performance 12- Bond, Airline may pledge with City securities acceptable and payable to City in an amount equal to Two Thousand Dollars ($2,000) . The income from such securities shall be payable to Airline. ARTICLE XVII - 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 the Airline in connection with the premises herein leased. ARTICLE XVIII - Notices Notices to the City provided for herein shall be sufficient if sent by registered or certified mail, postage prepaid, addressed to the Airport Manager, Wichita Falls Municipal Airport, Route 4, Box 72-E, Wichita Falls, Texas 76301; and notices to the Airline if sent by reg- istered or certified mail, postage prepaid, addressed to Joe Bill Bennett, Vice President-General Manager, Tricon International Airlines, Inc. , P. 0. Box 7169, Dallas, Texas 75209 or to such other respective addresses as the parties may designate in writing from time to time. ARTICLE X1X - Aircraft Service by Owner or Operator of Aircraft It is clearly understood by the Airline that no right or priv- ilege 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 and repair) that it may choose to perform. ARTICLE XX - Development of Wichita Falls Municipal Airport City reserves the right to further develop or improve the Airport as it sees fit, regardless of the desires or view of the Airline, and with- out interference or hindrance. If the physical development of the Airport requires the relocation of the Airline, the City agrees to provide a com- parable location and agrees to relocate all buildings or provide similar facilities for the Airline at no cost to the Airline. 13- ARTICLE XX1 - War or National Emergency During the time of war or national emergency, City shall have the right to return the Airport or any part thereof to the United States Government for military or naval use, and, if such right is executed, the provisions of the lease with the Government shall be suspended. ARTICLE XXII - Subordination This lease shall be subordinate to the provisions of any exist- ing or future agreement between City and the United States, relative to the operation or maintenance of the Airport, the execution of which has been or may be required as a condition precedent to the expenditure of Federal Funds for the development of the Airport. ARTICLE XXIII - Hold Harmless Airline shall be solely responsible for the conduct of its air transportation operations at Airport and shall hold City and its Agents harmless from all liability in connection with its operation: ARTICLE XXIV - 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 and intent of any provisions of this lease. ARTICLE XXV - Invalid Provisions 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 juris- diction, the invalidity of any such covenant, condition or provision shall in no way affect any other covenant, condition or provision herein contained; provided however, that the invalidity of any such covenant, condition or provision does not materially prejudice either City or Airline in their respective rights and obligations contained in the valid covenants, conditions or provisions in this agreement. 14- I ! 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 : BY: u L..a.1'iu}'Lv /6. Gerald G. Fox, Cit Manager ATTEST: i i BY: //, -ue_4 ' ti Wilma J. Thomas , City Clerk TRICON INTERNATIONAL AIRLINES, INC. L SBY:il ; 1 Jo Bill Bennett, Vice President- General Manager APPROVED AS TO FORM: B ii. P. Hodge, J . (Ci Attorney 1 i L.._. e.' : ILL , b 1 : Zci a' h ! I; z x I ; P---\ '• 7 \ I-r.)g: . 1 1; I' w t/ i \ 4 1 ' g i i I!I u.,0 g 1 11II) ; i V ) ' V -- --'j/ j // '—' r;,±7) i. 7',./L,1-- ( k,,>j.'t-- -j-'S... t)( - .' -: 71 ..\.‘• X i 2; V k (/' c," , ,/ '') ')- ? 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