21 - Airport Hangar Lease AgreementItem No. 21
memorandum
TO: Mayor & City Council
Gene Anderson, Interim City Manager
FROM: Carla Easton, PE, Engineering & Community Development Director
SUBJECT: AIRPORT LEASE AMENDMENT
DATE: January 17, 2020
BACKGROUND: In 2018, at the recommendation of staff and the airport board, the city council
approved of a new lease agreement for hangar leases at Cox Field. While the agreement was
reviewed at length by the board and open to public input prior to its approval, it was not well
received by the lessees upon renewal of their lease agreements. Several concerns were brought to
the board for consideration in September and discussed in detail in October of 2018.
STATUS OF ISSUE: The airport board asked staff to address two issues with the lease language.
First, to add a clause allowing a 30 day notification for termination of the agreement by the tenant,
or an "opt out" clause. Second, to remove reference to a permit issued at the airport, seeing as it
is not current practice to issue a permit.
An amendment has been drafted to address these two issues, and upon approval by city council,
will be attached to each lease agreement. The airport board approved of this amendment at the
January 16th meeting.
RECOMMENDATION: Approve of an amendment to the hangar lease agreement.
ADDENDUM TO AIRPORT HANGAR LEASE AGREEMENT
THE STATE OF TEXAS
KNOW ALL MEN BY THESE PRESENTS
COUNTY OF LAMAR
This Addendum to Airport Hangar Lease Agreement (Lease) is made by and between the City of
Paris, Texas, a home rule municipal corporation (LESSOR), and
ERVIN (LESSEE).
WHEREAS, the LESSOR and LESSEE entered into the Airport Hangar Lease dated
---- ..... .......... — 20_; and
WHEREAS, the parties to said Lease have agreed to make certain modifications thereto;
THEREFORE, said Lease is hereby amended as follows in accordance with Section 47 thereof
as follows:
A. Section 4 shall be amended to read as follows:
44. The term of this lease shall be seven (7) years. This lease may be extended by LESSEE
for an additional three (3) year period, provided all requirements of this Lease have been
met; LESSEE owes no taxes, fees, or penalties to the City of Paris; and LESSEE makes
known its desire to extend the lease no later than six months before expiration of the Lease.
LESSEE may terminate this Lease upon thirty (30) days written notice to LESSOR in
accordance with the terms of Section 54 herein."
B. Section 7 shall be amended to read as follows:
"7. The primary purpose for which the hangar has been leased is the storage of airplanes and
related aeronautical equipment and other items of personal property pertaining to that use
and owned by the LESSEE. Towards that purpose LESSEE shall advise LESSOR and its
airport manager the specific aircraft(s) to be stored in hangars, and should LESSEE change
aircraft(s) LESSEE shall notify both LESSOR and its airport manager of said change
within thirty (30) days. In addition to the provisions and limitations set forth below,
LESSEE shall have the right to use the leased premises for lawful purposes of private use
only which are related to aviation or the aviation industry in conformance with the
requirements of the City's master plan, and in such a manner so as not to materially and
adversely affect the development and improvement, operation, or maintenance of the
airports. This Lease does not constitute the issuance of any permit. Should a hangar
remain vacant for a period of 180 days, it shall be declared abandoned."
C. All other terms and conditions of the Lease shall remain in full force and effect.
EXECUTED ON the dates shown in acknowledgments below.
CITY OF PARIS, LESSOR:
Interim City Manager
ATTEST:
City Clerk
APPROVED AS TO FORM:
City Attorney
LESSEE
Name:
STATE OF TEXAS )
COUNTY OF LAMAR )
BEFORE ME, the undersigned authority, on this day personally appeared
Interim City Manager of the City of 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 day of
,20—.
Pa
Notary Public, State of Texas
STATE OF TEXAS )
COUNTY OF LAMAR )
BEFORE ME, the undersigned authority, on this day personally appeared
known to me to be the person whose name is subscribed to the foregoing
instrument, and acknowledged to me that he/she executed the same for the purposes and
consideration therein expressed.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this the day of
20
3
Notary Public, State of Texas