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Res 009-2001 2/6/2001RESOLUTION NO. q - I RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS, AUTHORIZING THE CITY MANAGER TO EXECUTE A LEASE AGREEMENT WITH COBRA OIL AND GAS 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 Cobra Oil and Gas Corporation to lease a parcel at said airport for the purpose of constructing an aircraft storage hangar; and WHEREAS, the proposed location of this aircraft hangar is in accordance with the approved airport Master Plan. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS: SECTION 1. That the City Manager is hereby authorized to execute a lease agreement on behalf of the City with Cobra Oil and Gas Corporation, for the purpose of constructing an aircraft storage hangar, in accordance with the terms and conditions of said lease agreement, attached hereto and made a part hereof for all purposes. SECTION 2. That 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 6th day of February 2001. MAYOR ATTEST: 4b� City Clerk STATE OF TEXAS § COUNTY OF WICHITA § LEASE AGREEMENT This Agreement, dated February 6, 2001, between the City of Wichita Falls (herein called "Lessor "), and Cobra Oil and Gas Corporation (herein called "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, said parcel being described in Exhibit A (Hangar 6), 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 100 feet by 100 feet. 2. Term. This lease is for a term commencing on February 6, 2001, and ending on May 14, 2009. Thereafter, this lease may be extended for a series of three five -year terms. The terms and conditions of each five -year term must be mutually agreeable to Lessor and Lessee. The above - listed extensions are contingent on the City and Federal Government continuing the airport lease agreement beyond May 14, 2009. 3. Rent. The Lessee agrees to pay the Lessor as rental for property during said term the sum of 38.46 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 ten feet around the perimeter of the hangar building for parking purposes without payment of additional consideration. 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 38.46 cents per square foot per month. A fuel flow rate of 6.0 cents per gallon used will be paid to the City by the 10th day of the succeeding month. The first 1,000 gallons of fuel usage is exempt from the 6.0 cent flowage fee. 6. 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. 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 premises and keep them in reasonably good repair and condition, except for ordinary wear and tear, and damaged caused by an act of God. 7. Alterations. Lessee may erect any improvements or make any alterations to the structures on the premises as required for business purposes. All alterations, improvements, and additions to the 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 sixty (60) days, remove from said premises any and all buildings, structures, or improvements which are located on the premises on the date of said termination if the Lessee so desires, or if the City of Wichita Falls so requests. 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, 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 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 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 shall not assign or transfer this agreement nor any privileges hereunder, and shall not assign or sublet all or any part of the premises leased hereby, whether voluntarily or involuntarily, without 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 corporation is transferred to other parties by notice of sale or transfer of stock, without the prior written consent of the City, this shall be considered an assignment of the tease. 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 the principal owner of Cobra Oil and Gas Corporation, this lease is terminated unless the heirs notify the City within thirty (30) days in writing of their intentions to comply with the terms of the lease and enter into a new lease agreement with the same terms and conditions. In the event that a new lease is not entered into, the heirs shall have sixty (60) days to remove all improvements from the leased property. 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 business thereon. Lessee shall specifically comply with all environmental regulations and shall not permit the dumping of spillage of oil, gas, or other contaminants 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 areas. Lessee, at its expense, shall obtain all license or permits that may be required for the conduct 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 day and year first above written. Attest: City Clerk Approved as to Form: Assistant City Attorney By: Title: STATE OF TEXAS § COUNTY OF WICHITA § LESSOR CITY OF WICHITA FALLS James Berzina, City Manager City of Wichita Falls, Texas LESSEE COBRA OIL AND GAS CORPORATION 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 for Cobra Oil and Gas Corporation, on behalf of said Corporation. Notary Public, State of Texas