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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