2005-074-RES GROUND LEASE WITH OPTION TO CONSTRUCT IMPROVEMENTS KNOX AERIAL SPRAYING
RESOLUTION NO. 2005-074
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS,
PARIS, TEXAS, APPROVING AND AUTHORIZING A GROUND LEASE
WITH OPTION TO CONSTRUCT IMPROVEMENTS BETWEEN THE
CITY OF PARIS AND KNOX AERIAL SPRAYING FOR PROPERTY
LOCATED ON THE GROUNDS OF COX FIELD AIRPORT; MAKING
OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City Council of the City of Paris has received a request from Knox Aerial
Spraying, 1201 FM 1509, Brookston, Texas 75421, for a ground lease to lease property at Cox Field
Airport, Paris, Texas, for the purpose of erecting a concrete pad and other improvements and
possibly a future hangar building in support of an aerial spraying business and other aeronautical
activities; and,
WHEREAS, it is deemed to be in the best interest of the Cox Field operation and the City
of Paris that aeronautical activities for the flying public be encouraged; and,
WHEREAS, the form of a Lease Agreement, attached hereto as Exhibit A, should in all
things be approved, and the Mayor should be authorized to execute the same; NOW,
THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS,
TEXAS:
Section I. That the findings set out in the preamble to this resolution are hereby in all things
approved.
Section 2. That a Ground Lease Agreement by and between the City of Paris and Knox
Aerial Spraying for the leasing of property located at Cox Field Airport for the purpose of
constructing a concrete pad and other improvements and a possible hangar building, in support of
an aerial spraying business and other aeronautical activities, a copy of which said Lease is attached
hereto and incorporated herein for all purposes as Exhibit A, shall be, and the same is hereby
approved, and the Mayor shall be and is hereby authorized to execute and City Clerk to attest to the
aforesaid Lease Agreement.
Section 3. That this resolution shall be effective from and after its date of passage,
PASSED AND APPROVED this 27th day of J
ATTEST:
~,o,fOO~o
, . ce Ellis, City Clerk
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GROUND LEASE AGREEMENT
COUNTY OF LAMAR
)
)
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KNOW ALL MEN BY THESE PRESENTS:
.STATE OF TEXAS
THIS GROUND LEASE AGREEMENT is made this 27th day of June, 2005, by and
between the CITY OF PARIS, PARIS, TEXAS, a municipal corporation, acting by and through its
City Manager, Tony N, Williams, duly authorized, hereinafter referred to as LESSOR, and KNOX
AERIAL SPRAYING, 1201 F,M, 1509, Brookston, Texas, 75421, Lamar County, Texas,
hereinafter referred to as LESSEE.
WITNESSETH
For and in consideration of the possible future construction of a hangar and the payment of
the monthly ground lease payment, due on or before the 1 st day of each month, to the LESSOR, and
each month thereafter, as follows: $100.00 per month, said LESSOR does lease, rent, and let unto
LESSEE that portion of Cox Field property described in Exhibit "A," attached hereto and made a
part hereoffor all legal purposes, hereinafter referred to as the property or leased premises. The first
such monthly payment shall be due and payable on or before the first day of July, 2005, with
successive monthly payments being due and payable on the first day of each month thereafter during
the term hereof.
LESSEE hereby leases the leased premises from LESSOR subject to the terms, covenants
and conditions stated below, and shall have the right and privilege to construct and maintain certain
improvements as described herein on the leased premises.
LESSEE has inspected the leased premises and accepts it in its present (as-is) condition
unless expressly noted otherwise in this Lease, LESSOR and any agent have made no express or
implied warranties as to the condition or permitted use of the leased premises. LESSEE must satisfy
Ground Lease AEreement. page 1
EXHIBIT ./l
itself that the leased premises may be used as LESSEE intends by independently investigating all
matters related to the use of the leased premises, LESSEE agrees that it is not relying on any
warranty or representation made by LESSOR concerning the use of the leased premises.
LESSOR shall deliver possession of the leased premises to LESSEE as of the effective date
hereof.
LESSEE shall be responsible for maintenance and insurance of the leased premises upon
delivery of possession to LESSEE.
The term of this Lease is for five (5) years, beginning on the 1st day of July, 2005, and ending
on the 30th day of June, 2020, In the event LESSEE, during the term of this Lease, desires to
construct a hangar in accordance with the provisions hereof, the term of this lease shall, from the
date of the commencement of construction of the hangar, be extended to a term of fifteen (15) years.
The rent established herein shall be subject to increase every five (5) years, in July of each
sixth year, in the percentage amount of increase in the Consumer Price Index for All Urban
Consumers (CPI-U United States City Average [1982-84=100%]) above the rate for January 2000,
which shall be determined to equal 168,7.
In determining the rate increase, the LESSOR shall, by or before March I of each fifth year,
or as soon thereafter as reasonably possible, provide written notice to the LESSEE of the amount of
the cpr increase (including appropriate documentation thereof) and the LESSOR's calculation of
the new montWy rental based on said increase. Beginning with the montWy payment due the first
of the month following receipt of LESSOR's notice, LESSEE shall pay the adjusted monthly rate
as determined herein. If, for any reason, the CPI adjustment would result in a decrease in the
monthly rental due, the previous rental shall remain in effect. In no event shall the monthly rental
rate be decreased.
Ground Lease A2reement - page 2
At the end of the initial term as specified herein, and if a hangar has been ~onstructed by
LESSEE under this Lease, the LESSOR shall solicit competitive prices for lease of the hangar upon
such terms and conditions and for such lengths of time as the LESSOR in its sole discretion shall
determine. LESSOR's right to reject all bids and solicit new bids when LESSOR deems such action
in LESSOR's best interest is hereby preserved, Based on the results of said solicitation for bids, the
LESSOR shall determine that bid which represents the highest and best bid meeting all criteria
established by the LESSOR for rental of the property. When the LESSOR has determined the
successful bid, the LESSOR shall thereafter offer LESSEE the opportunity for thirty (30) days to
lease the premises on the same terms and conditions as applicable to the designated successful
bidder. The LESSEE shall, within the thirty (30) day offer period, provide notice to LESSOR in
writing as to whether or not LESSEE desires to re-lease the facility on the basis of the successful bid.
If the LESSEE declines to match the successful bid, or fails to respond within the designated thirty
(30) day period, then the LESSOR may proceed in leasing the facility to the designated successful
bidder, and the LESSOR's obligation to LESSEE under this right-of-first-refusal shall have been
satisfied. If, at the end of the initial term as specified herein, LESSOR has not constructed a
permanent hangar on the leased premises, then the annual rent shall be based upon the ground lease
rate established by the City Council ofthe City of Paris and in effect at that time.
IN CONSIDERATION HEREOF, it is mutually agreed by and between LESSOR and
LESSEE as follows:
1. That LESSEE pay to LESSOR, or order, at the City Hall in the City of Paris, the
agreed rental in advance, promptly and without neglect, default, and delay.
In the event LESSOR fails to receive any payment within ten (10) days after the same is due,
a late payment penalty equal to 10% of such payment shall be charged to LESSEE. In the event
Ground Lease Aereement - page 3
LESSEE shall become delinquent for more than thirty (30) days, this Lease may be terminated by
LESSOR as further stated herein.
2. That this Lease is subject to all the terms, provisions, and conditions of the deed of
conveyance of such premises from the United States of America to the City of Paris, recorded in
Book 308, Page 287, Deed Records of Lamar County, Texas, to which reference is made for all
purposes.
3, That LESSEE, LESSEE's successors or assigns, agree that, in the event facilities are
coristructed, maintained, or otherwise operated on the said property described in this Lease for a
purpose for which a Department of Transportation program or activity is extended or for another
purpose involving the provision of similar services or benefits, LESSEE shall maintain and operate
such facilities and services in compliance with all other requirements imposed pursuant to Title 49,
Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part
21, Nondiscrimination in Federally-Assisted Programs of the Department of Transportation-
Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended.
4. That LESSEE, LESSEE's successors and assigns, will complete a Federal Aviation
Administration (FAA) Form 7460-1, "Notice of Proposed Construction or Alteration," and receive
a favorable determination from the FAA prior to any construction on the property.
5. That LESSEE, LESSEE's successors or assigns, agree that (i) no person, on the
grounds of race, color, creed, sex, age, national origin, or disability shall be excluded from
participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said
facilities; (ii) that, in the construction of any improvements on, over, or under such land and the
furnishing of services thereon, no person, on the grounds of race, color, creed, sex, age, national
origin, or disability shall be excluded from participation in, denied the benefits of, or otherwise be
Ground Lease A2reement - page 4
subjected to discrimination; (iii) that the LESSEE shall use the leased premises in compliance with
all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department
, of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally-
Assisted Programs of the Department of Transportation-Effectuation of Title VI of the Civil Rights
Act of 1964, and as said Regulations may be amended. In the event of breach of any of the
preceding nondiscrimination covenants, LESSOR shall have the right to terminate this Lease and
any aeronautical permits, and to re-enter and repossess said land and the facilities thereon, and hold
the same as if said Lease had never been made or issued.
6. That LESSEE shall comply with all conditions and requirements established in
Department of Transportation, Federal Aviation Administration, Grant Agreements No. 8-48-0169-
02 and No. 6-48-0169-03.
7. That LESSEE will abide by and comply with all rules, regulations, ordinances, and
laws pertaining to the use of the Airport located at Cox Field, including but not limited to the City
of Paris Airport Manual and Federal Aviation Administration rules and regulations pertaining to Cox
Field, as the same shall currently exist or be hereafter amended or adopted, and in addition thereto
will abide by and comply with all ordinances of the City of Paris and all laws of the State of Texas
governing citizens and property within the City of Paris, as the same shall currently exist or be
hereafter amended or adopted,
8. That LESSEE will use such leased premises only for aeronautical activities for which
LESSEE holds a permit issued by the City of Paris in accordance with Article II of Chapter 6 of the
Code of Ordinances of the City of Paris, This Lease does not constitute the issuance of any such
permit. Additionally, LESSEE may, at its option, (I) install a temporary hangar of such size as shall
be approved in advance in writing by LESSOR, to be placed on a concrete slab constructed by the
Ground Lease Al!reement - page 5
LESSEE, (2) install a portable storage building of such size as shall be approved in advance in
writing by LESSOR, on a concrete slab constructed by the LESSEE, and/or (3) construct and
. maintain a private hangar of such size as shall be approved in advance in writing by LESSOR, on
the lease premises in furtherance of its permitted activity.
The LESSOR and LESSEE recognize and agree this Lease shall be subject to such
regulations and approvals as required by the FAA and TxDOT Aviation and in particular those FAA
regulations which provide that the property subject to this Lease shall be used for Airport purposes
and in such a manner so as not to materially and adversely affect the development and improvement,
operation or maintenance of the Airport; and to the requirements of a national emergency. LESSEE
agrees to cooperate and assist LESSOR in complying with such regulations and conditions of
approval. All runways and Airport facilities shall be open to the general traveling public for the
landing and operation of aircraft therefrom without hindrance or interference on the part of LESSEE,
No hangar constructed on the leased premises governed by this Lease shall be used as a
residence or for residential purposes. However, such items as a sink, bathroom, or associated facility
to allow temporary overnight stay or perhaps occasional social uses of a portion of the hangar will
be permitted. Failure to comply with this requirement shall constitute grounds for termination of this
Lease.
9. That LESSEE may build, at LESSEE's own expense, a hangar building ofa
minimum internal size of five hundred (500) square feet, along with accompanying apron and
appropriate taxi lane, if necessary, in pursuit of such permitted uses as specified herein, upon
application and approval for building permit or permits from the City of Paris, of all steel
construction, similar in appearance and construction to the existing enclosed hangars and in
accordance with the floor plan approved by the City of Paris, and in conformance with the rules or
Ground Lease Al!reement - page 6
regulations of the City of Paris or the Federal Aviation Administration.
LESSEE agrees to complete the construction of all buildings, ramps, and facilities, within
eighteen (18) months of the commencement of construction.
Prior to construction of the improvements, the LESSEE shall obtain the LESSOR's written
approval of the plans and specifications for such construction. The preliminary submission by the
LESSEE shall employ essentials of aesthetics, convenience, function and design, and shall be
compatible in such respect with those of the Airport. Upon approval of such preliminary plans,
LESSEE shall prepare complete plans and specifications for the proposed construction, A
construction application and final plans and specifications, when rendered, shall be submitted to the
LESSOR for approval. The LESSEE shall include in all construction contracts entered into by it,
in connection with any or all of the construction work, a provision requiring all contractors to
indemnify, hold harmless, defend and insure LESSOR, its officers, agents, and employees, against
the risk of death, injury, or damage to persons or property, direct or consequential, arising out of or
in connection with the performance of any or all of such construction work. The LESSEE shall
require all contractors to furnish liability insurance in such reasonable amounts as may be required
by the LESSOR. In the alternative, the LESSEE itself may provide the indemnity and liability
insurance otherwise required of contractors.
All plans and specifications referred to above and all construction, renovation, remodeling,
or refurbishing to or upon the leased premises shall meet all current codes required by the LESSOR
and shall provide for the construction to be from material satisfactory and acceptable to the
LESSOR. During the progress of all work, LESSOR's duly authorized representative may enter
upon the leased premises and make such inspections as may be reasonably necessary for the purpose
of satisfying LESSOR that the work or construction meets such requirements and standards.
Ground Lease A2reement - page 7
The LESSEE further covenants that all construction work to be performed by it or its
contractors, including all workmanship or materials shall be of first class quality and shall be
'performed in accordance with the plans and specifications approved by the LESSOR. LESSEE
agrees that it shall deliver to the LESSOR "as built" transparencies of the improvements constructed
by it and shall, during the term of this Lease keep such transparencies, if any, current, showing
thereon any changes or modifications which may be made in or to the improvements. LESSEE shall
also provide a detailed cost summary of the costs incurred in constructing the hangar.
The requirements stated herein for construction of the improvements shall likewise apply to
any improvements or alterations to the original structure approved by LESSOR.
In the event that LESSEE fails to comply with the provisions of this section of this Lease,
the LESSOR may, in addition to any other remedies available to it, terminate this Lease.
10. That ownership of the hangar building, apron, and other associated improvements
and/or alterations authorized by and constructed pursuant to this Lease shall revert to LESSOR (at
no cost) upon expiration of the original term of the Lease,
II, That LESSEE may install in or upon the leased premises all such machines, tools,
equipment, or other items of personal property as necessary in connection with the activities
authorized in this Lease. All personal property belonging to LESSEE located on the leased premises
and/or in the improvements located thereon shall be there at the sole risk ofthe LESSEE. LESSOR
shall have no liability or responsibility for any theft, misappropriation, or damage to any personal
property belonging to the LESSEE, any subtenant, or customer of the LESSEE. The LESSEE shall
be entitled during the term of this Lease to remove from the leased premises, or any part thereof, all
aircraft, tools, machinery, equipment, and non-structural improvements located thereon; provided,
however, that all buildings from which any property is so removed shall be restored by LESSEE in
Ground Lease Al!reemeot - page 8
such a manner that the buildings are not materially damaged (i.e" restored to same condition that
existed before installation or placement of the property) and that those items removed are not
. required in order for the structure to be utilized as a hangar. LESSEE shall remove all equipment,
fixtures, and systems (as specified in this Lease) upon termination or expiration of this Lease. If
LESSEE fails to remove such property from the leased premises upon termination or expiration of
this Lease, then LESSOR retains the right to remove or have removed at the expense of LESSEE all
equipment, fixtures, and systems, and LESSEE agrees to pay LESSOR for such expense within
fifteen (15) days after receipt of an invoice from LESSOR.
12. That, except as otherwise provided herein, LESSEE will use the leased premises only
for aviation purposes, and administrative offices, and in any lawful manner necessary or incidental
to the conduct thereof.
LESSOR hereby grants, assigns, and conveys to LESSEE reasonable non-exclusive, non-
discriminatory use, as defined by the FAA, of the runways, landing and taxiing ways, and common
use portions of the Airport and related facilities at all times, subject, however, to the right of others
entitled to use thereof. The LESSEE shall pay reasonable and customary fees, if any, as the same
now exist or shall hereafter be charged, for the use of such portions of the Airport.
The LESSOR reserves for the use and benefit of the public a right of flight for the passage
of aircraft in the airspace over the leased premises and for such noise as may be inherent in the
operation of aircraft in said airspace, and for landing on, taking off from or operating on the Airport.
13, That LESSEE agrees not to make any additions or modifications to the leased
premises unless agreed upon by both parties in writing, In the event of such consent, all
improvements or modifications shall be made at the expense of LESSEE and, at the expiration of
this Lease, shall become the property of LESSOR,
Ground Lease Al!reement - page 9
LESSEE agrees that the usage of the leased premises plus any associated apron shall be
limited to the parking of LESSEE's personallcompanylcustomer owned aircraft. All automobiles,
buses, trucks, or other transportation modes must be parked or stored in approved automobile
parking areas and/or inside any hangar, unless agreed upon by LESSOR in writing.
LESSEE agrees not to fuel or defuel any aircraft parked inside any hangar, LESSEE agrees
to have a sufficient number of fire extinguishers of acceptable size as determined by the local fire
marshal inside any hangar/office. Such fire extinguisher(s) shall be readily accessible in the event
of a: fire. The local fire marshal or his designated representative reserves the right to periodically
inspect such fire extinguishers and the facility for fire safety compliance.
LESSEE agrees that it will not operate any nonaviation-related business or activity on the
leased premises.
LESSEE agrees that, during the final one hundred eighty (180) days of the term hereof,
LESSOR and LESSOR's authorized representatives shall have the right to erect and maintain on or
about the leased premises customary signs advertising the leased premises for lease or for sale.
14. That LESSEE agrees at all times to comply with the following: (I) LESSEE shall
at no time use, or permit the use of, the leased premises in a manner that is contrary to applicable
federal, state, or local laws, ordinances, rules, or regulations, which shall include, but not be limited
to, applicable Federal Aviation Administration rules and regulations and applicable regulations for
the use of the Airport as may from time to time be promulgated by the LESSOR; (2) LESSEE shall
not permit any permanent, unshielded light or illumination source to cause glare as viewed from any
street, adjacent properties, or operating aircraft; (3) LESSEE shall not cause or permit the burial on
the leased premises of any hazardous waste or materials, as defined by Federal or State law; (4)
LESSEE shall not cause or permit any use or activity on the leased premises which would create a
Ground Lease Al!reement - page 10
hazardous condition for aircraft operating at the Airport; (5) LESSEE shall not allow the leased
premises to be used for parking of motor vehicles, motorcycles, or motor driven equipment by
anyone other than customers, employees, or contractors of LESSEE except as may be authorized by
the City of Paris, with all such parking being limited to areas designated by LESSOR for such
parking; LESSEE shall not be in default for the improper parking of vehicles over which neither
LESSEE nor any of its subtenants, customers, employees, or contractors have any control; (6)
LESSEE shall not allow scheduled airline passenger operations to be conducted on the leased
premises; and (7) LESSEE shall not permit aircraft to access the leased premises from outside the
Airport property such that such access would constitute a "through the fence" operation prohibited
by contracts between LESSOR and the State of Texas or the United States of America.
15. That LESSEE will take good care of the leased premises and be responsible for and
make good to LESSOR for all injuries and damages to the same caused by LESSEE or those under
LESSEE's control and will deliver same to LESSOR at the expiration or termination of this Lease
in as good condition as when completed, usual wear and tear alone excepted; and LESSEE will,
upon the expiration of this Lease, peaceably yield up to LESSOR all and singular the premises and
all future erections, additions, or repairs to or upon same, in good repair, including but not limited
to the main hangar building, apron, storage building, and permanent installation of equipment,
fixtures, and fences.
16. That LESSEE agrees that it will at all times keep the leased premises, including the
inside and the outside of any facility, clean and free of trash, litter, tall grass, weeds, junked
automobiles, and scrap parts. LESSEE shall abide by all applicable laws and rules of the
Environmental Protection Agency, the Texas Natural Resources Conservation Commission, the
Texas Department of Agriculture, the Texas Department of Transportation, any other public agency,
Ground Lease Al!reement - page II
and any local laws or ordinances concerning the use, storage, and disposal of hazardous chemicals,
fuel, and/or oil. LESSEE further agrees to abide by the manufacturer's directions in regards to the
use, storage, and disposal of all pesticides, herbicides, and other chemicals plus their containers used
at the Airport.
Should LESSEE fail to keep the leased premises clean and free of hazards, LESSOR may,
after thirty (30) days written notice, arrange for the clean-up of the littered or hazardous area, Such
clean-up shall be charged to LESSEE and payable upon demand. Failure to render prompt payment
for such clean-up is grounds for LESSOR to terminate this Lease.
17. That LESSEE, at LESSEE's own cost and expense, shall keep the interior and
exterior (including all structural and non-stmctural) portions of the leased premises including, but
not limited to, plumbing, heating, lighting, air conditioning, and any other systems in connection
therewith and all other parts of the leased premises in good order and condition and will make all
necessary repairs to the leased premises both ordinary and extraordinary, foreseen and unforeseen,
and will make all necessary replacements oflike quality when beyond repair. This obligation shall
extend to the land and all improvements located thereon. LESSEE shall be responsible for all
cleaning, custodial and janitorial, and landscaping services and shall keep the leased premises in
neat, safe, sanitary, orderly, and sightly condition and in good working order at all times and shall
remove snow and ice therefrom.
In the event LESSEE fails to comply with this paragraph, LESSOR may notify LESSEE in
writing that such maintenance, repair, or cleaning shall be done, and in the event that LESSEE fails
to correct the condition within thirty (30) days of LESSOR's written notice, LESSOR or its
authorized designee may enter the leased premises and provide the necessary maintenance or repair
services and LESSEE agrees to pay LESSOR such expenses within fifteen (15) days upon receipt
Ground Lease Al!reement - page 12
of an invoice. This is not to be construed as a duty or obligation of LESSOR to make any repair or
perform any work or cleaning which the LESSEE is required to make or perform.
18, That LESSEE shall payor cause to be paid all charges for water, heat, gas, electricity,
sewer, and all other utilities used on the leased premises throughout the term of this Lease, including
any connection fees. Furthermore, no wells or septic tanks shall be located on the leased premises
by LESSEE without LESSOR's express written approval.
19. That it shall be lawful for LESSOR's designated representatives to enter upon and into
the leased premises, and every part thereof, at all times for the purpose of inspecting and examining
the condition thereof.
20. That it is understood and agreed that nothing herein contained shall be construed to
grant or authorize the granting of an exclusive right forbidden by Section 308(a) of the Federal
Aviation Act of 1958 or for aeronautical activities such as, but not limited to:
a) charter operations.
b) pilot training
c) aircraft rental
d) aerial photography
e) crop dusting
f) sale of aviation petroleum products
g) air carrier operations
h) aircraft sales and service incidental thereto
i) any other activity which, because of its direct relationship to the operation of
aircraft, can be regarded as an aeronautical activity,
Accordingly, LESSOR reserves the right to grant to others the privilege to engage in (or
conduct) anyone or all of the aeronautical activities permitted hereunder.
21, That LESSEE shall not erect, paint upon, attach, exhibit or display in, on, or about
said leased premises any sign without the prior express written consent of the LESSOR's designated
representative,
Ground Lease Al!reement - page 13
22. That LESSEE will not assign this Lease or sublet the leased premises or any part
thereof without the express written consent of LESSOR, in writing, first had and obtained. Any
assignee shall assume all rights, privileges, duties, and responsibilities contained in this Lease.
23. That LESSEE shall during the term hereof maintain at LESSEE's sole cost and
expense insurance relating to the leased premises as follows: (1) Insurance against loss or damage
to improvements by fire, lightning, and other risks from time to time included under standard
extended coverage policies, and sprinkler, vandalism, and malicious mischief in an amount not less
thari the full replacement value of the hangar or other improvements thereon; and (2) Hangar
keeper's liability insurance providing for coverage in the following limits: $200,000.00 per aircraft
and $400,000.00 per occurrence on property damage to aircraft in the care, custody, or control of
LESSEE if the LESSEE does not own all the aircraft stored in LESSEE's hangar.
24. That LESSEE agrees to obtain and maintain construction liability insurance at all
times when demolition, excavation, or construction work is in progress on the leased premises. This
insurance shall be carried by insurance companies authorized to transact business in the state of
Texas, selected by LESSEE and approved by LESSOR, and shall be paid for by LESSEE. This
insurance shall have limits of not less than $100,000,00 for property damage and $250,000.00 per
person and $500,000.00 per accident for personal injury and shall protect LESSOR and LESSEE,
as well as any other person or persons LESSEE may designate, against all liability for injury or
damage to any person or property in any way arising out of demolition, excavation, or construction
work on the leased premises.
25, That LESSEE agrees to indemnify, save, keep and hold harmless LESSOR from and
against any and all demands, debts, liabilities, suits, claims and causes of action of every kind and
character whatsoever for damage or injuries to persons and/or property occurring on the leased
Ground Lease A~reement - page 14
premises resulting from LESSEE's, LESSEE's invitees, agents, servants or employee's use of the
leased premises, and LESSOR shall not be liable to LESSEE, LESSEE's invitees, agents, servants,
. employees or visitors due to the improvements located thereon, or hereafter constructed, or any other
condition of the leased premises being improperly constructed, maintained or being or becoming out
of repair; LESSEE hereby waives any defects therein and agrees to hold and save LESSOR harmless
from all claims for any such damages or injuries, and LESSEE must, at all times during the term of
this Lease, keep and maintain, in full force and effect, a policy or policies of insurance, providing
at least $250,000.00 per person and $500,000,00 for any single occurrence for bodily injury or death
and $100,000.00 for any single occurrence for injury to or destruction of property, indemnifying all
persons for any and all damages, personal injuries or property damages sustained in or upon the
leased premises of said leased property, or any part thereof, as the result of the negligence of
LESSEE, LESSEE's invitees, agents, servants or employees, and shall pay all premiums due thereon
when due,
26. That with regard to all insurance required under this Lease, it is expressly provided
that such insurance policy or policies shall and must be written and issued by a reputable insurance
company or companies, with LESSOR as an additional insured, subject to approval by the City
Attorney of the City of Paris, and LESSEE or LESSEE's insurance carrier or carriers shall deliver
a copy of any such policies to the City Clerk of the City of Paris, 150 1st Street S,E., Paris, Texas
75460, or furnish to said City Clerk a current letter or certificate from such company or companies,
evidencing the fact that such insurance is in full force and effect at all times during this Lease, and
any extension hereof, and specifically noting thereon that LESSOR is an additional insured. All such
policies shall be written so that the LESSOR will be notified of cancellation or of any restrictive
amendment of the policies at least thirty (30) days prior to the effective date of such cancellation or
Ground Lease A2reement - page 15
amendment. Notice shall be by certified mail, return receipt requested, addressed to the LESSOR
at the following address: City Clerk, City of Paris, P. O. Box 9037, Paris, Texas 75461-9037.
LESSEE agrees that if LESSEE does not keep all insurance required under this Lease in full force
and effect, LESSOR may declare this Lease, and all rights and interest created by it, to be terminated,
27, That, in case of any damage to or destruction of the buildings, structures, and
equipment on the leased premises, or any part thereof, LESSEE will promptly give written notice
thereof to LESSOR, generally describing the nature and extent of such damage and/or destruction.
In case of any damage to or destruction of the buildings, structures, and equipment on the
leased premises, or any part thereof, LESSEE, whether or not the insurance proceeds, if any, payable
on account of such damage and/or destruction shall be sufficient for such purpose, at LESSEE's sole
cost, risk, and expense, will promptly commence and complete the restoration, repair, and
replacement of said buildings, structures and equipment as nearly as possible to their value,
condition, and character immediately prior to such damage and/or destruction, with such alterations
in and additions thereto as may be approved in writing by LESSOR (hereinafter sometimes referred
to as the "Restoration").
All insurance proceeds, if any, payable on account of such damage to or destruction of the
buildings, structures, and equipment on the leased premises shall be held by LESSOR. LESSOR
shall be protected in acting upon any certificate believed by LESSOR to be genuine and to have been
executed by the proper party and shall receive such certificate as conclusive evidence of any fact or
as to any matter therein set forth. Such certificate shall be full warranty, authority, and protection
to LESSOR in acting thereon, and LESSOR shall be under no duty to take any action other than as
set forth in this paragraph.
Ground Lease Al!reement - page 16
Insurance proceeds received by LESSOR on account of any damage to or destruction of the
buildings, structures, and equipment on the leased premises, or any part thereof (less the costs, fees,
and expenses incurred by LESSOR and LESSEE in the collection thereof, including, without
limitation, adjuster's and attorney's fees and expenses), shall be applied as follows:
A. Net insurance proceeds as above defined shall be paid to LESSEE or as LESSEE may
direct from time to time as Restoration progresses to pay (or reimburse LESSEE for)
the cost of Restoration, upon written request of LESSEE to LESSOR accompanied
by (I) certificate of a supervising architect or engineer approved by LESSOR,
describing in reasonable detail the work and material in question and the cost thereof,
stating that the same were necessary or appropriate to the Restoration and constitute
a complete part thereof, and that no part of the cost thereof has theretofore been
reimbursed, and specifying the additional amount, if any, necessary to complete the
Restoration, and (2) an opinion of counsel satisfactory to LESSOR that there exist
no mechanics' , materialmen's, or similar liens for labor or materials except such, if
any, as are discharged by the payment of the amount requested.
B. Upon receipt by LESSOR of evidence of the character required by the foregoing
clauses (A)(1) and (2) that Restoration has been completed and the cost thereof paid
in full, and that there are no mechanics' , materialmen's, or similar liens for labor or
materials supplied in connection therewith, the balance, if any, of such proceeds shall
be paid to LESSEE or as LESSEE may direct.
In the event that LESSEE does not promptly commence Restoration, or after cornmencement
LESSEE does not diligently proceed to the completion of same, LESSOR shall have the right to
cornmence or complete Restoration after LESSOR has given LESSEE thirty (30) days prior written
Ground Lease Al!reement - page 17
notice requesting the eommencement of Restoration or that LESSEE diligently proceeds to the
completion of same if LESSEE during such thirty (30) day period does not so cornmence or proceed
to diligently complete Restoration. In such event, LESSOR shall retain the insurance proceeds, and
LESSEE shall pay any deficiency if such proceeds are not sufficient for Restoration.
28. That LESSEE shall not rent the leased premises, or any part thereof, for aircraft
storage unless a permit under Article II, Chapter 6 of the Code of Ordinances of the City of Paris,
has been issued to LESSEE for that specific purpose,
29, That LESSOR has the right to take any action it considers necessary to protect the
aerial approaches of the Airport against obstruction, together with the right to prevent LESSEE from
erecting, or permitting to be erected, any building or other structure on the Airport which, in the
opinion of the LESSOR, would limit the usefulness of the Airport or constitute a hazard to aircraft,
30. That LESSEE shall pay and discharge all taxes, including without limit sales, use, and
excise taxes, ad valorem taxes, taxes on personal property, general and special assessments, and
other charges of every description which are levied on or assessed against the leased premises and
all interests in the leased premises and all improvements and other property on the leased premises
during the term ofthis Lease, whether belonging to LESSOR or to LESSEE. LESSEE shall pay all
such taxes, charges, and assessments directly to the public officer charged with their collection not
less than fifteen (15) days before the same shall become delinquent. LESSEE shall at no time permit
the foreclosure of any tax liens to LESSEE's leasehold interest in the leased premises or the
buildings, fixtures, or other improvements on the leased premises. LESSEE shall have the right in
good faith at its own sole cost and expense to contest any such taxes, charges, and assessments, and
shall be obligated to pay the contested amount, plus any penalties and interest imposed, only if and
when finally determined to be due. At any time that the payment of any item of taxes, special
Ground Lease A2reement - page 18
assessments, or governmental charges which LESSEE is obligated to payunderthe provisions of this
paragraph remain unpaid and uncontested later than fifteen (15) days before the same shall become
delinquent, LESSOR may declare this LEASE, and all rights and interest created by it, to be
terminated.
31. That nothing herein shall be deemed to relieve LESSEE and its tenants, sublessees,
patrons, invitees and others from Airport use charges, including fuel flowage fees paid on fuel
purchased by LESSEE, as are levied generally by the LESSOR directly upon the operation of
aircraft, or from automobile parking permit fees for parking areas that are not included within the
leased premises, or from security fees.
32, That, if at any time a release of hazardous materials is discovered on, at, or in the
leased premises, the Airport, the LESSOR's sewage or storm drainage system, soil, air, groundwater,
or any improvements, which was caused or permitted by LESSEE, LESSEE's officers, agents,
employees, contractors, permittees, invitees, or subtentants, or there is the danger of such release of
hazardous materials, LESSEE, at LESSEE's sole cost and expense, shall ensure removal of such
hazardous materials from the leased premises, the Airport, the underlying groundwater, the
LESSOR's soil, air, storm drainage, and the sewage system, in accordance with requirements of all
appropriate governmental authorities.
LESSEE shall immediately notify LESSOR of any release of hazardous materials.
Upon discovery of any hazardous materials on, in, under, or emanating from the leased
premises, any release or threat of release of a hazardous materials, and/or any illness caused by
exposure thereto, LESSEE shall immediately, and at its sole cost and expense, take all actions
necessary to remediate, abate, and/or rectify any such conditions at or upon the leased premises,
Ground Lease Al!reement - page 19
33. That LESSEE will not use, or permit the use of, said leased premises, or any part
thereof, for any purpose which is determined dangerous or hazardous to the Airport operation by
. Airport Manager.
34, That the following events shall be deemed to be events of default by LESSEE under
this Lease:
A. Failure of LESSEE to pay any lease payment or any other sum payable to LESSOR
hereunder on the date that same is due and such failure shall continue for a period of
thirty (30) days.
B, Failure of LESSEE to comply with any term, condition, or covenant of this Lease
other than the lease payment or other sum of money, and such failure shall not be
cured within thirty (30) days after written notice thereof to LESSEE,
C. Insolvency, the making of a transfer in fraud of creditors, or the making of an
assignment for the benefit of creditors by LESSEE or any guarantor of LESSEE's
obligations.
D. Filing of a petition under any section or chapter ofthe National Bankruptcy Act, as
amended, or under any similar law or statute of the United States or any State thereof
by LESSEE or any guarantor of LESSEE's obligations, or adjudication as a bankrupt
or insolvent in proceedings filed against LESSEE or such guarantor.
E. Appointment of a receiver or trustee for all or substantially all of the assets of
LESSEE or any guarantor of LESSEE's obligations.
F. Abandonment by LESSEE of any substantial portion of the leased premises or
cessation of use of the leased premises for the purposes leased,
G, The filing of any lien against the leased premises resulting from any act or omission
Ground Lease Al!reement - page 20
of LESSEE which is not discharged or contested in good faith as determined by
LESSOR by proper legal proceedings within fifteen (15) days of receipt of actual
notice by LESSEE, unless LESSEE posts a bond within this time period equal to the
amount of the lien,
In the event of any default by the LESSEE that is not cured within thirty (30) days of
receiving notice from LESSOR, LESSOR may, in addition to any other remedies available to it,
terminate this Lease. If the default concerns a failure to make payments to LESSOR, however, no
written or other notice of default shall be required. If payments to LESSOR are in arrears for a
period of thirty (30) days after the payments become due, then LESSEE shall be in default under this
Lease,
Notwithstanding the foregoing, no failure to perform or delay in performance which is caused
by any war, civil disorder, or other national emergency or which is due to an intervening act of God
shall be deemed an event of default.
In addition to the termination and forfeiture right described in the preceding paragraph,
LESSOR shall have the following rights and remedies upon default by LESSEE:
A. The recovery of any unpaid rent, fees, and other payments due and owing at the time
of termination, plus any unpaid rent and fees that would have been earned and other
payments that would have been made if the Lease had not been breached by
LESSEE.
B. The recovery of any damages, costs, fees, and expenses incurred by LESSOR as a
result of the breach of the Lease by LESSEE, including reasonable attorneys' fees
and expenses.
C. The removal of all persons from the leased premises, and the removal and storage at
Ground Lease Aereement - page 21
LESSEE's expense of all property on the leased premises.
D. Any other right or remedy, legal or equitable, that LESSOR is entitled to under
applicable law.
No termination shall relieve the LESSEE of the obligation to deliver and perform on all
outstanding obligations and requirements prior to the effective date of the termination and LESSEE's
liabilities under this Lease shall continue.
In the event of any such termination as above enumerated, LESSOR shall have the right at
once and without further notice to the LESSEE to enter and take full possession of the leased
premises occupied by the LESSEE under this Lease, Upon the termination of this Lease for any
reason, LESSEE shall yield up said leased premises, facilities, fixtures, and equipment to LESSOR
in the same condition as when received, reasonable and ordinary wear and tear and damage by the
elements excepted.
In the event of the failure on the part ofthe LESSEE upon the termination of this Lease to
immediately remove from the leased premises all property owned by it, LESSOR may effect such
removal and store such property at LESSEE's expense, LESSEE further covenants and agrees to pay
and discharge all reasonable costs, attorney's fees, and expenses that may be incurred by LESSOR
in enforcing the covenants, conditions, and agreements of this Lease, re-entering andlorrepossessing
the leased premises, restoring the leased premises to good and proper repairlorder, protecting the
leased premises, and obtaining a new tenant.
The failure of LESSOR to declare this Lease terminated for any of the reasons set out above
shall not bar the right of LESSOR to subsequently terminate this Lease for any of the reasons set out
above, Further, the acceptance of rents, fees, or other payments due and owing to LESSOR for any
period after a default of any of the terms, covenants, or conditions by LESSEE shall not be deemed
Ground Lease Aereement - page 22
a waiver of any right on the part of LESSOR to terminate this Lease.
35. That the LESSOR has the right to temporarily close the Airport or any of the facilities
thereon for maintenance, improvements, or for the safety of the public,
36. That the LESSOR may, at its option, terminate this Lease as to the land or the entire
hangar building, or any parts thereof, which may be necessary in the event the LESSOR desires to
use the property, or any portion thereof, for necessary municipal functions as determined by
LESSOR, such as, but not limited to, extension of runways or erection of other Airport facilities.
In the event of the above determination, the LESSOR shall give the LESSEE ninety (90) days notice,
in writing, of its intention to so utilize the building, or any portion thereof, for such purposes. In the
event this option is exercised by the LESSOR, LESSEE shall be paid, as LESSEE's sole
consideration, the fair market value of improvements previously made by LESSEE to the leased
premises and authorized by LESSOR, said fair market value to be determined as of the time the
LESSOR exercises the right of termination as provided in this paragraph. In no event shall LESSOR
be liable for a claim of lost profits, lost benefit, or other similar claims as a result of termination
under this paragraph.
37, That, during time of war or national emergency, LESSOR shall have the right to lease
the landing areas or any part thereof to the United States Government for military or naval use, and,
if such lease is executed, the provisions of this instrument, insofar as they are inconsistent with the
provisions of the lease to the Government, shall be suspended,
38. That the waiver by LESSOR of any breach by LESSEE of the terms, covenants,
conditions, or provisions of this Lease shall not be deemed to be a waiver of any other breach of the
same or other term, covenant, condition, or provision of this Lease, regardless of when the breach
has occurred.
Ground Lease Aereement - page 23
39. That, in case anyone or more of the provisions contained in this Lease shall, for any
reason, be held by a Court of competent jurisdiction to be invalid, illegal, or unenforceable in any
respect, such invalidity, illegality, or unenforceability shall not affect any other provision of the
Lease, and this Lease shall be construed as if the invalid, illegal, or unenforceable provision had
never been included in the Lease.
40. That this Lease constitutes the sole and only agreement of the parties to this Lease
and supercedes any prior understandings or written or oral agreements between the parties respecting
the subject matter of this Lease.
41. That no amendment, modification, or alteration of the terms of this Lease shall be
binding unless it is in writing, dated subsequent to the date of this Lease, and duly executed by the
parties of this Lease.
42. That the rights and remedies provided by the Lease are cumulative, and the use of any
one right or remedy by LESSOR shall not preclude or waive its right to use any or all other remedies.
These rights and remedies are given in addition to any other rights the LESSOR may have by law,
statute, ordinance, or otherwise,
43. That all notices required under this Lease must be given by certified mail orregistered
mail, addressed to the proper party, at the following addresses:
LESSOR
City Manager
City of Paris
P. O. Box 9037
Paris, TX 75461-9037
LESSEE
Tom and Kim Knox
Knox Aerial Flying
1201 F.M. 1509
Brookston, TX 75421
Either party may change the address to which notices are to be sent by giving the other party
notice ofthe new address in the manner provided in this paragraph.
44, That this Lease shall be binding upon, and inure to the benefit of, the respective heirs,
Ground Lease Aereement - page 24
executors, administrators, legal representatives, successors, and assigns when permitted by this
Lease,
45, That this Lease shall be construed under, and in accordance with, the laws of the State
of Texas, and all obligations ofthe parties created by this Lease are performable in Lamar County,
Texas. Venue for State court actions arising under this Lease shall be exclusively in the courts of
Lamar County, Texas; venue for federal court actions arising under this Lease shall be exclusively
in the federal courts for the Eastern District of Texas,
EXECUTED ON the dates shown in acknowledgments below,
CITY OF PARIS, LESSOR:
By:
Curtis Fendley, Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
Larry W. Schenk, City Attorney
KNOX AERIAL FLYING, LESSEE
Name: Tom Knox
Name: Kim Knox
Ground Lease Agreement - page 25
STATE OF TEXAS )
)
COUNTY OF LAMAR )
BEFORE ME, the undersigned authority, on this day personally appeared CURTIS
FENDLEY, Mayor ofthe City of Paris, Paris, Texas, known to me to be the person whose name is
subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the
purposes and consideration therein expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this the 27th day of July, 2005.
Notary Public, State of Texas
STATE OF TEXAS )
)
COUNTY OF LAMAR )
BEFORE ME, the undersigned authority, on this day personally appeared TOM KNOX
AND KIM KNOX, DOING BUSINESS AS KNOX AERIAL FL YlNG, known to me to be the
persons whose names are subscribed to the foregoing instrument, and acknowledged to me that they
executed the same for the purposes and consideration therein expressed and in the capacity therein
stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this the _ day of June, 2005.
Notary Public, State of Texas
Ground Lease Aereement - page 26
Reference Bearing: Center line of main runway
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J.M. Nelson, RPLS of Texos.
Nelson Surveying Company
920 N. Main st. Paris, Texas 75460
903-785-3551 fax: 903-785-3399 E1nai ;mo18l8met.com
..1M NeI8on, RegIstered Proleeelonal Land llu'veyor 01 Texae, 14025
1hJe IUMY Is only valId If It has on original slgnatur. and .eaI, Any chong.. made wIll vold Ihle NMy,
Before any con_wcUon, all ulAlty cumpanle_ ehould b, contacted for locaUon of th,1r roepeetl.... ulllty line_
100 >",or flood ton., or. t<:anned and In..n,d from FHa" or FIRM unl... oth........ notld her.on.
EXHIBIT A-
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#4025 dote
clp = 1/2"
copped Iron pin
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Nels-on Surveying Company
920 North Main Street Paris, Texas 75460
903-785-3551 fax 903-785-3399 e-mail jimn@1stamet.com
Jim Nelson, owner
J. M. Nelson, Registered Professional land Surveyor of Texas, #4025
These field notes are for use only by the "group or persons" certified 10. SUrveyor .ssurnes no liability for .ny modification or unauthorized copies.
CF-Knox Disk-798 WScoll #856
FIELD NOTES
Situated within the Limits of the City of Paris, County of Lamar, and State of Texas, a part of the
William Scott Survey #856, and being a part of a 1552.97 acre tract of land conveyed the City of Paris by
deed recorded in VoL 308, Page 287, of the Deed Records of said County and State, said City of Paris
tract being known as the Cox Field Airport property.
Beginning at a Yo" capped (NELSON SURVEYING) iron pin (s) for corner, said iron pin being North
62'21'41" East a distance of 2106.30 feet from the centerline station 30+00 as shown on FAA. Project
No. 8-48-0169-01, on file in the City of Paris Engineer's Office, said point also being North 74'38'39" East
a distance of 4540.83 feet from a y," iron pin (I) at the intersection of the East Boundary Line tangent and
the South Boundary Line tangent of Farm Road 1508 , said intersection being an el corner of City of Paris
I Cox Field 1552.79 acre tract
Thence North 37'58'58" East parallel with and 50 feet Northwest of the Northwesterly Boundary Line of
a concrete Taxiway, a distance of 100.00 feet to a 11," capped (NELSON SURVEYING) iron pin (s) for
corner;
Thence North 52'01'02" West a distance of 100.00 feet to a y,"capped (NELSON SURVEYING) iron
pin (s) for corner;
Thence South 37'58'58" West a distance of 100.00 feet to a Yo" capped (NELSON SURVEYING) iron
pin (s) for corner;
Thence South 52'01'02" East a distance of 100.00 feet to the place of beginning and containing 0.230
acres of land.
I, J,M. Nelson, Registered Professional Land Surveyor of Texas, #4025, certify to the City of Paris,
that the above depicted and described tract of land was taken from an actual survey made on the ground
and completed by me on the 22nd day of June, 2005.
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date
J.M. Nelson, RPLS of Texas, #4025
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