15 - City-Owned Hangar Lease Agreement AmendmentItem No. 15
TO: Mayor, Mayor Pro -Tem & City Council
Grayson Path, City Manager
FROM: Paul Strahan, Airport Manager/FBO Operator
SUBJECT: CITY -OWNED HANGAR LEASE AGREEMENT AMENDMENT
DATE: January 10, 2022
BACKGROUND: Paragraph 4 of the current t -hangar (city -owned) lease states that the term of
the lease is 7 years with an option to extend the lease for an additional 3 years. The City of Paris
City Code Sec. 10.04.006 (b) covers T -hangar rental and states that all hangars shall be on a month-
to-month basis.
STATUS OF ISSUE: The current hangar lease agreement contradicts the Paris City Code and
needs to be amended to reflect what is written in the City's Code of Ordinances.
BUDGET: N/A
RECOMMENDATION: Approve the amendment to the Hangar Lease Agreement to reflect the
lease term being a month-to-month rather than a 7 year term with an additional 3 year option. By
doing this correction, both the t -hangar lease and the city code will be in agreeance.
AIRPORT HANGAR LEASE AGREEMENT
THE STATE OF TEXAS §
COUNTY OF LAMAR §
KNOW ALL MEN BY THESE PRESENTS
This Hangar Lease Agreement (Lease) is made by and between the City of Paris, Texas, a home
rule municipal corporation (LESSOR) and- w_wwww
.................... _(LES SEE).
For and in consideration of the payment of monthly hangar rental paid to LESSOR, LESSOR does
hereby lease, rent, and let unto LESSEE that portion of Cox Field real property known as Hangar
and as described in Exhibit A, attached hereto and made a part hereof for all legal
purposes.
LESSEE hereby leases said real property from LESSOR subject to the terms, covenants, and
conditions stated below, and shall have the right and privilege to construct and maintain certain
improvements of said property. LESSEE accepts property "as is."
Except to the extent provided herein and subject to the provisions hereof, LESSEE shall have and
hold the leased premises, together with all rights, privileges, easements, appurtenances, and
immunities belonging to or in any way appertaining to said leased premises, including, but not
limited to, any and all easements, rights, title and privileges of LESSOR now or hereafter existing
in, to, or under said leased premises, and additionally LESSEE shall be permitted to use in
common with others all streets and other rights of ingress and egress and all runways, taxiways and
designated aprons which are or may hereafter be provided at the Airport.
LEASE TERMS:
1. Subject to the provisions contained herein, LESSEE shall pay to LESSOR a monthly hangar
payment of $ per month, to be paid on or before the 1' day of each month, beginning on
the commencement date of this lease and continuing regularly thereafter during the term of this
lease and any extensions thereof. At its sole option, LESSEE may prepay any of the rental
installments.
2. Rental rates established herein shall be subject to increase annually, on the first day of the
month in which lease begins, in an amount equal to 1.5%.
Revised 1-10-2022
3. LESSEE shall pay to LESSOR at the City Hall in the City of Paris, the agreed rental in
advance, promptly and without neglect, default, or delay. Should LESSEE fail to make
payments in a timely manner, a late penalty of 10% shall be assessed beginning on the tenth
calendar day after the due date. Should payments remain past due for more than thirty
(30) days, Lease is in default and may be terminated, as provided herein below.
4. The term of this lease shall beyears
L on a month to month basis, beginning
._................. ........................... This lease be emended by LESSEE f a addit;..,. a X wee (3)
year-
> ided all 4s of this > LESSEE owes no taxes,fees,
er-
penalties to the City of Par -is; and LESSEE makes 1-un-A-m&H its desife to extend the lease He later- th
vffien ae irae to LESSOR -aerse .a. nee with the to,.ms of See fi ,,, 54 her -e;,.. The lease will
continue each month thereafter provided all requirements of the lease have been met; LESSEE
owes no taxes, fees, or penalties to the City of Paris. Either party may terminate the lease by
providing a thirty (30) days advance written notice of termination.
MAINTENANCE & USE
5. LESSEE shall, at its own cost and expense at all times during the term of Lease: 1) Keep and
maintain property and facilities in good condition and repair, and make good to LESSOR any and
all injuries and damages to the same caused by LESSEE or those under him and will deliver same
to LESSOR at the expiration or termination of this Lease in as good condition as when rented,
usual wear and tear alone excepted; 2) Comply with all fire, building, and property maintenance
codes and zoning regulations now in force, or that may be hereafter enacted with regard to the use
of the airport premises; 3) Maintain roofs and walls free from leaks and damage; and 4) Maintain
property clear of clutter and junk.
6. 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, if any, in good
repair, including but not limited to the hangar building and any permanent installation of
equipment and fixtures.
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
Revised 1-10-2022
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."
8. LESSEE has the non-exclusive right to use, in common with others, all public airport
facilities and improvements of a public nature, including, but not limited to, landing, taxiing,
parking areas, and other common -use facilities. LESSEE shall not cause or permit any use or
activity that would create a hazardous condition for aircraft operating at the airport, or which is
determined dangerous or hazardous to airport operation. This includes interference from such
items as electrical or electronic equipment, creation of smoke or dust, or glaring or misleading
lights.
9. No hangar shall be used as a residence or shall be used for residential purposes,.
10. No commercial activity is authorized unless it is first approved by LESSOR.
11. LESSEE shall conduct its operation and maintain the leasehold in such a manner as to be free
of environmental contamination, and shall neither store fuel nor defuel any aircraft inside any
hangar.
12. LESSEE shall not store inoperable aircraft for which there are no immediate rehabilitation or
repair plans.
13. LESSEE shall not leave hangar doors open after use. LESSEE shall keep hangar locked, and
provide a key to manager so that manager can enter premises when required for business purposes.
14. LESSEE shall not modify any part of the hangar without written permission of LESSOR,
including modifying existing electrical wiring or equipment in or about the hangar. LESSEE
shall not attach any hoist or holding mechanism to any part of the hangar structure, or pass any
such mechanism over the struts or braces therein.
15. LESSEE shall not park or leave aircraft or motor vehicles on the taxiway or on the pavement
adjacent to the hangar door in a manner that would unduly interfere with or obstruct access to any
Revised 1-10-2022
hangar. LESSEE shall not operate or permit the operation of motor vehicles on any unauthorized
area of the ramp, hangar, or aircraft operation locations.
16. LESSEE shall at no time use or permit the use of leased premises in a manner contrary to
federal, state, or local laws, ordinances, rules, regulations, or TXDOT or FAA Grant Agreements
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.
17. 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, or
i) any other activity which, because of its direct relationship to the operation of aircraft,
can be regarded as an aeronautical activity.
18. LESSEE shall pay or cause to be paid all charges for electricity used on the leased premises
throughout the term of Lease, if any sh& be assessed agamstmmspecific units due to improvements
added
sb_, LESSEE. All other electric costs shall be the responsibility of LESSOR
19. 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.
20. LESSEE, LESSEE's successors or assigns, agrees that, in the event facilities are
constructed, 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
Revised 1-10-2022
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.
21. LESSEE, LESSEE's successors or assigns, agrees 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 subjected
to discrimination; (iii) that the LESSEE shall use the 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.
22. LESSOR possesses the right to periodically enter upon and into the leased premises, and
every part thereof, at all times for the purpose of inspecting and examining the condition
thereof, and to ensure all requirements, including those relating to use, are being met.
23. LESSOR shall adopt and implement security measures, policies, and procedures. A copy of
Hangar Use Policy, attached hereto, shall be posted in or on the hangar in open sight at all
times.
24. LESSOR shall make every reasonable effort to maintain hangar in good repair.
25. LESSEE shall directly and timely pay and discharge all taxes, if any, including without limit
ad valorem taxes or other similar taxes, taxes on personal property, and other charges and special
assessments of every description which are levied on or assigned against the leased premises and
all improvements, or any other equipment or property associated with or stored inside the hangar
during the term of this Lease. LESSEE shall have the right in good faith at its own sole cost and
expense to contest any such taxes, charges, and assessments, but shall be obligated to pay the
contested amount, plus any penalties and interest imposed, if and when finally determined to be
due. At any time that the payment of any item of taxes, special assessments, or governmental
Revised 1-10-2022
charges which LESSEE is obligated to pay under the provisions of this paragraph remain unpaid
and contested 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, pursuant to the
provisions contained herein below.
INDEMNITY & INSURANCE:
26. LESSEE COVENANTS AND AGREES TO INDEMNIFY AND DOES HEREBY
INDEMNIFY, HOLD HARMLESS AND DEFEND CITY, ITS OFFICERS, AGENTS,
SERVANTS AND EMPLOYEES, FROM AND AGAINST ANY AND ALL CLAIMS OR
SUITS FOR PROPERTY DAMAGE OR LOSS AND/OR PERSONAL INJURY, INCLUDING
DEATH, TO ANY AND ALL PERSONS, OF WHATSOEVER KIND OR CHARACTER,
WHETHER REAL OR ASSERTED (INCLUDING, WITHOUT LIMITATION, REASONABLE
FEES AND EXPENSES OF ATTORNEYS, EXPERT WITNESSES AND OTHER
CONSULTANTS) ARISING OUT OF OR IN CONNECTION WITH, DIRECTLY OR
INDIRECTLY, THE NEGLIGENT OR OTHERWISE WRONGFUL ACTS OR OMISSIONS
OF LESSEE, ITS AGENTS, SERVANTS, CONTRACTORS, OR EMPLOYEES IN
CONNECTION WITH THIS LEASE, INCLUDING BUT NOT LIMITED TO INJURY OR
DAMAGE TO CITY PROPERTY. SUCH INDEMNITY SHALL SURVIVE THE TERM OF
THIS LEASE. THERE IS NO JOINT ENTERPRISE BETWEEN LESSOR AND LESSEE.
27. LESSEE shall maintain, during the life of Lease, and any extensions hereof, general liability
coverage with minimum limits for damages resulting from bodily injury or death of
$250,000 per person and $500,000 per occurrence, and $250,000 per occurrence for property
damage, or a combined single limit of $500,000, or in such other amounts mutually agreed
upon to fully and reasonably protect both LESSEE and LESSOR. LESSOR shall be
named as an additional insured with a waiver of subrogation in favor of LESSOR. All costs
of such insurance shall be borne by LESSEE. Such insurance policy or policies must be issued by
a reputable provider licensed to write such policies in the State of Texas.
28. 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 prior to occupation of leased premises,
evidencing the fact that such insurance is in fall force and effect at all times during this Lease, and
Revised 1-10-2022
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 amendment. Notice shall be by certified mail, return receipt requested. 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.
DEFAULT & TERMINATION:
29. Should LESSEE default in the performance of any covenant or condition in Lease, and such
default is not corrected within thirty (30) days after receipt of written notice from LESSOR to
LESSEE, LESSOR may declare Lease, and all rights and interest created by it, to be terminated.
Upon LESSOR electing to terminate, Lease shall cease and come to an end as if that were the day
originally fixed herein for the expiration of the term hereof. LESSOR, its agent or attorney, shall
be entitled to the immediate possession of the premises. LESSEE agrees that it will not interfere
with LESSOR's possession of the premises in any way if LESSOR takes possession under this
paragraph.
30. Any termination of this lease as herein provided shall not relieve LESSEE from the payment
of any sum or sums that shall then be due and payable to LESSOR hereunder, or any claim or
damages then or theretofore accruing against LESSEE hereunder, and any such termination shall
not prevent LESSOR from enforcing the payment of any such sum or sums or claim damages by
any remedy provided for by law or from recovering damages from LESSEE for any default
thereunder. No termination shall relieve LESSEE of the obligation to deliver and perform on all
outstanding obligations and requirements prior to the effective date of the termination.
31. In the event of the failure on the part of LESSEE upon termination of 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.
32. LESSEE shall pay and discharge all reasonable costs, attorney's fees, and expenses that may
be incurred by LESSOR in enforcing the covenants and conditions of Lease.
33. 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 during the pending force majeure event.
Revised 1-10-2022
RESERVED TO LESSOR:
34. Nothing herein contained shall be construed to grant or authorize the granting of an exclusive
right except as to the premises leased herein.
35. LESSOR reserves the right to further develop or improve the landing area of the airport as it
sees fit, regardless of the desires or view of LESSEE, including the temporary closing of the
airport, and the granting of an exclusive right.
36. The parties agree that LESSOR has not waived its sovereign immunity by entering into and
performing its obligations under this Lease.
37. LESSOR will maintain and keep in repair the landing area of the airport and all publicly
owned facilities of the airport, together with the right to direct and control all activities of LESSEE
in this regard. 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.
38. During a time of war or national emergency, LESSOR shall have the right to lease the landing
area or any part thereof to the United States Government for military 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.
39. LESSOR reserves 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 or adjacent to the airport
which, in the opinion of the LESSOR, would limit the usefulness of the airport or constitute a
hazard to aircraft.
40. During the final 180 days of the term of Lease, LESSOR shall have the right to erect and
maintain on or about the leased premises customary signs advertising the premises for lease.
41. This lease shall be subordinate to the provisions of any existing or future agreement between
LESSOR and the United States, relative to the operation or maintenance of the airport, the
execution of which has been or may be required as a condition precedent to the expenditure of
Federal funds for the development of the airport.
Revised 1-10-2022
42. Holding over by LESSEE of the airport premises after the expiration of this Lease shall
operate and be construed as a tenancy from day to day at a rental rate computed from the rental rate
then prevailing under this lease.
43. LESSOR may, at its option, and following a ninety (90) day written notice period, terminate
Lease, or any parts thereof, which may be necessary in the event LESSOR desires to use the
property, or any portion thereof, for any governmental purpose as determined by LESSOR, such as
but not limited to, extension of runways or taxiways, utility or drainage improvements, or the
expansion of existing buildings or the erection of other airport facilities.
44. Nothing herein contained shall be construed to deny LESSOR its right to condemn the leased
property through its power of eminent domain. In the event of condemnation of all or any portion
of the leased premises, the leasehold interest of LESSEE shall be deemed to include all rights
under this lease including, but not limited to, the right to occupy the improvements placed on the
leased premises.
MISCELLANEOUS
45. The undersigned officers and/or agents of the parties hereto are the properly authorized
officials and have the necessary authority to execute this Lease on behalf of the parties hereto, and
each party hereby certifies to the other that any necessary resolutions or other acts extending such
authority have been duly passed and are now in full force and effect.
46. This Lease represents the entire and integrated agreement between LESSOR and LESSEE
and supersedes all prior negotiations, representations and/or agreements, either written or oral.
This Lease may be amended, modified, or altered only by written instrument signed by both
LESSOR and LESSEE, dated subsequent to the date of this Lease, and duly executed by the parties
hereto.
47. If any clause, paragraph, section or portion of this Lease shall be found to be illegal, unlawful,
unconstitutional or void for any reason, the balance of the Lease shall remain in full force and
effect and the parties shall be deemed to have contracted as if said clause, section, paragraph or
portion had not been in the Lease initially.
48. This Lease is executed by the parties hereto without coercion or duress and for substantial
consideration, the sufficiency of which is hereby acknowledged.
Revised 1-10-2022
49. This Lease shall be drafted equally by all parties hereto. The language of all parts of this
Lease shall be construed as a whole according to its fair meaning, and any presumption or principle
that the language herein is to be construed against any party shall not apply. Headings in this
Lease are for the convenience of the parties and are not intended to be used in construing this
document.
50. This Lease may be executed in a number of identical counterparts, each of which shall be
deemed an original for all purposes.
51. This Lease shall not be assigned or sublet.
52. The rights and remedies provided by the Lease are cumulative, and the use of any one right or
remedy by LESSOR, or waiver by either party of any breach of this Lease, or the failure of either
parry to enforce any of the provisions of this Lease, at any time, shall not in any way affect, limit or
waive such party's right to use any or all remedies thereafter to enforce and compel strict
compliance of the Lease. These rights and remedies are given in addition to any other rights
LESSOR may have by law, statute, ordinance, or otherwise.
53. Where the terms of this Lease require that notice in writing be provided, such notice shall be
deemed delivered three (3) days following the deposit of the notice in the United States mail,
postage prepaid, and sent by certified mail, return receipt requested and properly addressed as
follows:
Lessor: City of Paris
P. O. Box 9037
Paris, TX 75461-9037
Lessee:
(address)
(address)
54. This Lease shall be binding upon, and inure to the benefit of, the parties of this Lease and their
respective heirs, executors, administrators, legal representatives, successors, and assigns when
permitted by this Lease.
55. This Lease shall be construed under, and in accordance with the laws of the State of Texas,
and all obligations of the parties created by this Lease are performable in Lamar County, Texas.
Revised 1-10-2022
EXECUTED ON the dates shown in acknowledgments below.
CITY OF PARIS, LESSOR:
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 Grayson Path,
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
Notary Public, State of Texas
Revised 1-10-2022
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
Notary Public, State of Texas
Revised 1-10-2022
ATTACHMENT - HANGAR USE POLICY
1. Keep and maintain property and facilities in good condition and repair.
2. Comply with all fire, building, and property maintenance codes and zoning regulations now in
force or that may be hereafter enacted with regard to the use of the airport premises.
3. Maintain roofs and walls free from leaks and damage.
4. Maintain property clear of clutter, junk, weeds and high grass.
5. Use the hangar only for the storage of airplanes and related aeronautical equipment and other
items of personal property pertaining to that use and owned by the Lessee.
6. Identify, in writing hereon, Lessee -owned aircraft, and notify airport manager promptly of
any change in aircraft stored.
7. Lessee has no authority to issue any sublease of this hangar, or permit any storage of any other
aircraft by any other person or persons.
8. Lessee shall not cause or permit any use or activity that would create a hazardous condition
for aircraft operating at the airport, or which is determined dangerous or hazardous to airport
operations, including interference from such items as electrical or electronic equipment, creation
of smoke or dust, or glaring or misleading lights.
9. No hangar shall be used as a residence or shall be used for residential purposes,.
10. Lessee may only perform repair and maintenance that does not require a licensed
airframe/aircraft power plant mechanic.
11. No commercial activity is authorized unless it is first approved by the City of Paris.
12. Lessee shall conduct its operation and maintain the leasehold in such a manner as to be free of
environmental contamination, and shall neither store fuel nor defuel any aircraft inside any hangar.
13. Lessee shall not store inoperable aircraft for which there are no immediate rehabilitation or
repair plans.
Revised 1-10-2022
14. Lessee shall not leave hangar doors open after use.
15. Lessee shall keep hangar locked, using a lock provided by the city's airport manager.
16. Lessee shall not modify any part of the hangar without written permission of the City of Paris,
including modifying existing electrical wiring or equipment in or about the hangar.
17. Lessee shall not attach any hoist or holding mechanism to any part of the hangar structure, or
pass any such mechanism over the struts or braces therein.
18. Lessee shall not park or leave aircraft or motor vehicles on the taxiway or on the pavement
adjacent to the hangar door in a manner that would unduly interfere with or obstruct access to any
hangar, nor operate or permit the operation of motor vehicles on any unauthorized area of the
ramp, hangar, or aircraft operation locations.
19. Lessee shall at no time use or permit the use of leased premises in a manner contrary to
federal, state, or local laws, ordinances, rules, regulations, or TXDOT or FAA grant agreements.
Revised 1-10-2022