Res 114-2001 9/18/2001RESOLUTION NO. ` I n - DWI
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WICHITA
FALLS, TEXAS, AUTHORIZING THE CITY MANAGER TO EXECUTE A
LEASE AGREEMENT WITH THE NEWCASTLE CORPORATION FOR
LEASE OF REAL PROPERTY AT THE WICHITA FALLS MUNICIPAL
AIRPORT; FINDING AND DETERMINING THAT THE MEETING AT
WHICH THIS RESOLUTION WAS PASSED WAS OPEN TO THE
PUBLIC AS REQUIRED BY LAW.
WHEREAS, the City of Wichita Falls operates the Wichita Falls Municipal Airport,
and has received a request from the Newcastle Corporation to lease a parcel of land at
said airport for the purpose of constructing an aircraft storage hangar; and
WHEREAS, the proposed location of the hangar is in accordance with the
approved Master Plan.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF WICHITA FALLS, TEXAS, THAT:
SECTION 1. The City Manager is hereby authorized to execute a lease
agreement on behalf of the City with the Newcastle Corporation, in accordance with the
terms and conditions of said lease agreement, attached hereto and made a part hereof
for all purposes.
SECTION 2. It is hereby officially found and determined that the meeting at
which this resolution was passed was open to the public as required by law.
PASSED AND APPROVED this the 18 day of September, 2001.
MAYOR
ATTEST:
Alf,
j City Clerk
STATE OF TEXAS §
COUNTY OF WICHITA §
LEASE AGREEMENT
THIS AGREEMENT, dated October 1, 2001, between the City of Wichita Falls
( "Lessor ") and Newcastle Corporation ( "Lessee "):
1. Demise. Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor,
that parcel of land situated in the City of Wichita Falls, Wichita County, Texas (the "Leased
Premises "), said parcel being described in Exhibit A, attached hereto, for the purpose of
constructing an aircraft storage hangar. Such hangar is to be constructed in accordance with the
most current building codes of the City. Prior to construction, Lessee shall furnish a copy of the
plans and specifications for such hangar to the City for its review and approval. The size of the
hangar will. not exceed 170 feet by 100 feet.
2. Term. This lease is for a term commencing on October 1, 2001, and ending on
May 14, 2009. Thereafter, contingent on the City and Federal Government continuing the
Airport Lease Agreement beyond May 14, 2009 (the "City Airport Extension "), this lease may
be extended by Lessee upon the same terms and conditions for the term of the City Airport
Extension, provided in no event shall this lease extend beyond May 14, 2026.
3. Rent. The Lessee agrees to pay the Lessor as rental for property during said term
the sum of 3.846 cents per square foot per month, payable each month in advance. Ramp space
will be available at no charge. Improvements to rebuild automobile parking will be the
responsibility of the Lessee. Lessee shall be allowed to utilize an area of fifty feet around the
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hangar building to the east and north, thirty feet to the south, and twenty feet to the west by
paying the above square foot per month rental therefor.
4. Fuel Facilities. The Lessee may construct fueling facilities in accordance with
approved environmental and City standards for the purpose of refueling Lessee -owned aircraft
only. Sale of fuel to other than Lessee -owned aircraft is prohibited. City will provide a suitable
mutually agreed -to location at the lease rate of 3.846 cents per square foot per month. If Lessee
constructs such fueling facilities, a fuel flow rate per gallon used will be paid to the City by the
10`" day of the succeeding month as follows:
Gallons Used Fuel Flow Rate
1,000 to 3,000 $.06
3,001 to 4,000 .05
4,001 to 5,000 .04
5,001 to 6,000 .03
Over 6,000 .02
The first 1,000 gallons of fuel usage per month is exempt from the flowage fee.
5. Utilities. Lessee shall pay all public charges, including heat, water, sewer,
electricity, gas, telephone, and other utility services on the premises from the date of execution of
this lease through the term of this lease. Lessee is responsible for all costs associated with
extending sewer, water, electrical, gas, telephone, and other utility services from the hangar
location to the existing services.
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6. Maintenance and Repair. Lessee shall, throughout the primary term of the lease
or any extension, at its expense, care for and maintain the buildings, parking lots, driveways,
landscaped areas, and other improvements located upon the Leased Premises and keep them in
reasonably good repair and condition, except for ordinary wear and tear, and damage caused by
an act of God.
7. Alterations. After reasonable notification to Lessor, Lessee may erect any
improvements or make any alterations to the structures on the Leased Premises as required for
business purposes. All alterations, improvements, and additions to the Leased Premises shall be
made in accordance with all applicable laws. Unless otherwise agreed to by the Lessor, upon
termination of this agreement, Lessee will, within one hundred fifty (150) days, remove from
said Leased Premises any and all buildings, structures, or improvements which are located on the
Leased Premises on the date of said termination if the Lessee so desires. All property remaining
on the Leased Premises after the expiration of said 150 -day period shall become the property of
Lessor.
8. Indemnity. This agreement is made upon the express condition that the Lessor
shall be free from liabilities and claims for damages and/or suits for or by reason of any kind
whatsoever, whether the person or property of Lessee, its agents or employees or third persons,
have any cause or causes whatsoever while in or upon said premises, or any part thereof, during
the term of this agreement, or occasioned by any occupancy or use of said Leased Premises or
any activity carried on by Lessee in connection therewith, and Lessee hereby covenants and
agrees to indemnify and save harmless Lessor from all liabilities, charges, expenses (including
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counsel fees), and costs on account of or by reason of any such injuries, liabilities, claims, suits,
or losses, however occurring, or damages growing out of same.
9 Assignment. Lessee may not assign or sublet all or any part of the Leased
Premises without obtaining the consent of the Lessor. Such consent shall not be unreasonably
withheld.
10. Termination. Construction must begin within ninety (90) days of the execution
of this lease agreement or the lease is automatically terminated. In the event of the demise of
A.R. Dillard, Jr., the sole owner of Lessee, this lease shall continue unless the personal
representatives of Mr. Dillard's Estate notify the Lessor within thirty (30) days of their
appointment in writing of their intentions to terminate the lease. In the event that the lease is
terminated, such personal representatives shall have one hundred fifty (150) days to remove all
improvements from the Leased Premises. All property remaining on the Leased Premises after
the expiration of the 150 -day period shall become the property of the Lessor.
11. Compliance with Laws. Lessee shall comply with all laws, orders, and
regulations of federal, state, and municipal authorities, which shall impose any duty upon Lessor
or Lessee with respect to the operation of the business thereon. Lessee shall specifically comply
with all environmental regulations and shall not permit the dumping or spillage of oil, gas, or
other contaminates on the leased premises. Lessee shall be solely responsible for any
environmental clean-up of the leased premises and adjacent areas that may be required by any
lawful regulatory agency occasioned by Lessee's occupancy and use of the Leased Premises.
Lessee, at its expense, shall obtain all licenses or permits which may be required for the conduct
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of its business within the terms of this lease, or for alterations, improvements, or additions which
Lessee may desire to make.
IN WITNESS WHEREOF, the said parties have caused this lease to be executed on the
date and year first above written.
Lessor
Jim Berzina, City Manager
City of Wichita Falls, Texas
Lessee
Newcastle Corporation
A. R. Dillard, Jr., President
STATE OF TEXAS §
COUNTY OF WICHITA §
This instrument was executed before me on this day of , 2001, by
Jim Berzina, City Manager for the City of Wichita Falls, a municipal corporation, on behalf of
said City.
Notary Public, State of Texas
STATE OF TEXAS §
COUNTY OF WICHITA §
This instrument was executed before me on this day of , 2001, by
A. R. Dillard, Jr., President of Newcastle Corporation, on behalf of said Corporation.
Notary Public, State of Texas