06-F-Hangar H - Lease AwardAGENDA INFORMATION SHEET
PROJECT: Consider a resolution authorizing the award of a lease agreement for the lease of Hangar H at Cox
Field Airport.
BACKGROUND: On February 28, 2000, a lease that had a term of five (5) years, with a five (5) year
extension, beginning March 1, 1990, expired on Hanger H at the Cox Field Airport. By resolution, the City
Council authorized the advertisement for bids for the lease of Hangar H, and bids were received in March of
2000. The original lease payments on the hangar through February of 2000 were $375.00 per month; the
subsequent bids included a high bid of $1,500.00 per month for a term of five (5) years, the second high bid
of $1,100.00 per month. Subsequently, the City Council authorized the offer of the lease to Mr. J. B. Richey,
who holds a right-of-first-refusal for the lease of Hangar H, at the $1,500.00 per month rent proposed by
Progressive Marketing Group. Mr. Richey subsequently declined to exercise his right-of-first-refusal, and
Council authorized the execution of a lease with Progressive Marketing. However, Progressive Marking failed
to timely exercise their opportunity to enter into a lease agreement, and that opportunity expired, while at the
same time a security company foreclosed on the aircraft owned by Progressive Marketing. Subsequently, the
security company paid all outstanding rental payments in the amount of $1,500.00 per month; however,
because of the need to have the hangar on a long-term lease basis to the benefit of the airport operations in
general, the City has notified the security holder the City intends to seek a new long-term tenant for the hangar
facility by competitive bid.
On February 12, 2001, the City Council approved Resolution No. 2001-014, authorizing the taking of bids for
the lease of Hangar H. Following Council approval, City staff solicited bids for leasing the facility. The City
included a form lease agreement in the bid package which addressed such issues as insurance, indemnity, use,
and maintenance of facilities, etc. Each bidder was asked to bid a monthly rate for a term not to exceed ten
(10) years.
The lease of the facility is compounded by the fact that the hangar must be a working hangar as opposed to
a storage hangar, with the lessee obligated to provide an airframe and power plant mechanic with an inspection
authorization. In addition, lease of the facility differs from prior leases because the current lease with the City' s
fixed base operator for the airport extends a right-of-first-refusal to the fixed base operator affording the
operator the opportunity to rent the facility once the terms and conditions of the lease are established through
the competitive process. As a consequence, there were several steps to the process of leasing this facility.
Subsequently, the City Council, on March 12, 2001, by adoption of Resolution No. 2001-023, designated that
the best bid for such lease was made by Jimmy D. Smyers of Powderly, Texas, in the amount of $875.00 per
month for a term often (10) years. This amount represents a considerable increase in monthly rental fees from
the previous $375.00 charged for this facility. The City's designation of Jimmy D. Smyers as a successful
tenant was conditioned upon offering the lease agreement on the same terms and conditions to J. B. Richey,
the holder of a right-of-first-refusal for the lease of the hangar as the City's fixed base operator.
Subsequent to the Council's action, staff tendered the lease to Mr. Richey for his consideration, and Mr.
Richey has since declined to exercise his right-of-first-refusal. Therefore, it is appropriate to go forward with
award of the lease to Mr. Smyers.
DESCRIPTION: The proposed resolution would authorize award of the lease agreement to Jimmy D. Smyers
of Powderly, Texas, as the highest and best bidder for the lease a Hangar H at Cox Field Airport. This lease
would be effective on May 1,2001.
RECOMMENDED ACTION: Approval of a resolution authorizing award of the lease.
STAFF CONTACT: Thomas E. Haynes, Project Coordinator; Larry W. Schenk, City Attorney; Michael E.
Malone, City Manager
COST: The City will receive $875.00 per month under the terms of this agreement.
CO[INCIL DATE: Consider for approval at City Council's special meeting on Monday, March 26, 2001.
ADDITIONAL MATERIALS: See enclosed resolution, final draft lease agreement, and the letter from the
fixed base operator declining the right-of-first-refusal.
OFFICE OF THE CITY ATTORNEY
March 13, 2001
J. B. Richie
Rt. 7, Box 146-B
Paris, TX 75460
RE: Opportunity to Exercise Right of First Refusal regarding Lease of Hangar H at
Cox Field Airport
Dear Mr. Richie
Enclosed please find a copy of Resolution No. 2001~023, accompanied by the bid and form
lease agreement submitted to the City of Paris by Jimmy D. Smyers of Paris, Texas, for the lease of
Hangar H (formerly known as the "Wrenn Hangar") at Cox Field Airport.
In accordance with the City Charter and State law, the City has in the previous months
pursued a process of requesting competitive bids for the lease of said hangar. As reflected in
Resolution No. 20014123, the City Council has determined that the bid submitted by Jimmy D.
Smyers of Paris, Texas, proposing a $875.00 per month lease for a period of ten (10) years, and
subject to the remaining terms and conditions of the form lease which is enclosed, was the highest
and best bid for the lease of Hangar H.
Pursuant to the City's current contract with you as the City's fixed base operator, these
materials am being forwarded for your review and subsequent action regarding the right of first
refusal. The City requests that you respond to these materials no later than thirty (30) days from the
date of receipt reflecting your firm commitment (including submittal of the first month's rent in the
amount of $875.00 as security for the bid) to accept the lease on the same terms and conditions as
proposed by the successful bidder. On the other hand, if you desire to decline the right of first
refusal, likewise please advise us in writing of your intentions.
To enable the City to proceed with the completion of this process as soon as possible, an
early response would be appreciated.
P.O. Box 9037 · P^RIS, TEXAS 75461-9037 · 903-785-7511, EXT. 258 · FAX 903-782-9721
me.
cc:
If you have any additional questions regarding this matter, please do not hesitate to contact
City Attorney
Thomas E. Haynes, Project Coordinator
Michael E. Malone, City Manager
J. IE Aviation
RT7Box 146 B 1
Pads, TX 75460
March 22, 2001
City of Paris, ATTN: Jim Collier
In compliance with the requirement to give written notice of approval or disapproval of our fight
of first refusal to lease hanger H hereby give notice that we cannot justify meeting the bid of $875.00.
We would like to retain the fight of first refusal for said hanger at such time as it becomes available
agam.
We would tike to express at this time the City of Paris is causing a disservice to the flying public
who visit the airport by not leasing Hanger H to the FBO at a fair and equitable price. Since our
intentions are to provide temporary hanger space for d/sptaced aircraft and have space available for
corporate type alremfl to hanger in bad weather and promde light maintenance it is financially
unfeasible to pay the bid price of $875.00.
Silicerely
Jerry Richey
Vise President
DRAFT
LISA~RESOLUTIONS\CURRENT\Smyers - Lease Res
March 23, 2001
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS,
PARIS, TEXAS, AWARDING A LEASE TO JIMMY D. SMYERS AS THE
HIGHEST AND BEST BIDDER FOR THE LEASE OF HANGAR H AT COX
FIELD AIRPORT; MAKING OTHER FINDINGS AND PROVISIONS
RELATED TO THE SUBJECT; AND PROVIDING FOR AN EFFECTIVE
DATE.
WHEREAS, the City Council of the City of Paris did heretofore, on the 12th day of
February, 2001, in Resolution No. 2001-014, authorize the advertisement for bids for the lease of
Hangar H at the Cox Field Airport, which bids were received until 3:00 o'clock p.m. on Tuesday,
March 6, 2001; and,
WHEREAS, the City Council of the City of Paris did heretofore, on the 12th day of March,
2001, in Resolution No. 2001-023, designate that the best bid for such lease was made by Jimmy D.
Stayers of Powderly, Texas, in the amount of $875.00 per month for a term often (10) years; and,
WHEREAS, in accordance with the terms of the lease with J. B. Richey, such bid was
subsequently forwarded to Mr. Richey as the holder of a right-of-first-refusal for the lease of Hangar
H in order that he be given the opportunity to match such bid; and,
WHEREAS, J. B. Richey has declined to exercise his right-of-first-refusal for such lease,
therefore, it is deemed appropriate that the lease of Hangar H be awarded to Jimmy D. Smyers;
NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS,
TEXAS:
Section 1. That the findings set out in the preamble to this resolution are hereby in all things
approved.
Section 2. That the lease of Hangar H be and the same is hereby awarded to Jimmy D.
Smyers of Powderly, Texas, for the amount of $875.00 per month for a period often (10) years, to
be effective May 1,2001.
Section 3. That the form of the Lease Agreement with Jimmy D. Smyers, attached hereto
as Exhibit A, be and the same is hereby approved.
Section 4. That the City Manager be and he is hereby authorized and directed to execute, on
behalf of the City of Paris, the Lease Agreement with Jimmy D. Smyers, under the terms and
conditions and in the form shown in Exhibit A, attached hereto.
Section 5. That this resolution shall be effective from and after its date of passage.
PASSED AND APPROVED this 26th day of March, 2001.
ATTEST:
Michael J. Pfiester, Mayor
Mattie Cunningham, City Clerk
APPROVED AS TO FORM:
Larry W. Schenk, City Attorney
LEASE AGREEMENT
COUNTY OF LAMAR )
) KNOW ALL MEN BY THESE PRESENTS:
STATE OF TEXAS )
THIS LEASE AGREEMENT is made this 26th day of March, 2001, by and between the
CITY OF PARIS, PARIS, TEXAS, a municipal corporation, acting by and through its City Manager,
Michael E. Malone, duly authorized, hereinafter referred to as LESSOR, and JIMMY D. SMYERS,
P. O. Box 95, Powderly, Lamar County, Texas, hereinafter referred to as LESSEE.
WlTNESSETH
For and in consideration of the payment of the monthly rental, due on or before the 1 st day
of each month, to the LESSOR, and each month thereafter, as follows: $875.00 per month, plus
utilities, said LESSOR does lease, rent, and let unto LESSEE that portion of Cox Field property
known as Hangar H, described in Exhibit "A", attached hereto and made a part hereof for all legal
purposes, hereinafter referred to as the property or premise.
The term of this Lease is for TEN years, beginning on the 1 st day of May, 2001, and ending
on the 30th day of April, 2011.
The rent established herein shall be subject to increase annually, in May of each 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 annual rate increase, the LESSEE shall, by or before March 1 of each year,
provide written notice to the LESSOR of the amount of the CPI increase (including appropriate
documentation thereof) and the LES SEE's calculation of the new monthly rental based on said
EXHIBIT A Lease Agreement - Page 1
increase. If LES SOR disagrees with LES SEE' s determination of said adjustment, LES SOR shall,
by or before March 20 of each year, calculate the rate increase appropriately and notify LESSEE, in
writing, of the appropriate monthly rental rate, as adjusted. If LESSOR does not object to LESSEE's
calculation of the rate adjustment as provided herein, then the rate adjustment provided by LESSEE
shall be deemed approved. In any event, beginning with the monthly payment due April 1 of each
year, 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 year's rental shall
remain in effect. In no event shall the monthly rental rate be decreased.
It is further agreed by LESSOR and LESSEE that LESSOR shall have the option to renew
such Lease for two additional periods of five (5) years each, the initial monthly rental for the renewal
to be at the last rate of the original term, with a like payment due on or before the first day of each
month thereafter during the remainder of the term of the first option. The granting of said first option
shall be on substantially the same terms and conditions of this original Lease, including the annual
rental CPI adjustment. LESSOR shall send written notice to LESSEE sixty (60) days in advance of
the end of the original term or optional extended term notifying LES SEE or LES SOR's intention to
extend the Lease for an additional five (5) year period.
IN CONSIDERATION HEREOF, it is mutually agreed by and between LESSOR and
LESSEE:
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.
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
Lease Agreement - Page 2
Book 308, Page 287, Deed Records of Lamar County, Texas to which reference is made for all
purposes.
3. That LES SEE, LES SEE'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, the LES SEE 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, 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
Lease Agreement - Page 3
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, 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.
8. That LESSEE will use such premises only for aeronautical activities for which
LES SEE holds a permit issued by the City of Paris in accordance with Article I! of Chapter 6 of the
Code of Ordinances of the City of Paris. This Lease does not constitute the issuance of any such
permit.
9. That LES SEE will take good care of the leased premises and be responsible and make
good to LESSOR 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 completed, usual wear and tear alone excepted; and LESSEE will, upon the expiration of this
Lease, peaceably yield up to LES SOR all and singular the premises and all future erections, additions,
Lease Agreement - Page 4
or repairs to or upon same, in good repair, including but not limited to the main hangar building and
permanent installation of equipment and fixtures.
10. That LES SEE shall pay or cause to be paid all charges for water, heat, gas, electricity,
sewers, and all other utilities used on the premises throughout the term of this Lease, including any
connection fees.
11. That all improvements made upon the said premises by LESSEE, or at LESSEE's
instance or request, shall at once become the property of LESSOR and shall be surrendered to
LESSOR at the termination or expiration of this Lease; except wherein it is specifically provided for
ownership to remain in LESSEE.
12. That it shall be lawful for LESSOR's Airport Manager 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.
13. 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 1
a)
b)
c)
d)
e)
f)
g)
h)
i)
958 or for aeronautical activities such as, but not limited to:
charter operations.
pilot training
aircraft rental
aerial photography
crop dusting
sale of aviation petroleum products
air carrier operations
aircraft sales and service incidental thereto
any other activity which, because of its direct relationship to the operation of
aircraft, can be regarded as an aeronautical activity.
Lease Agreement - Page 5
14. That, in the event any building or improvement constructed on the premises is
damaged or destroyed by fire or any other casualty, regardless of the extent of such damage or
destruction, LESSEE shall, within one (1) year from the date of such damage or destruction, begin
to repair, reconstruct, or replace the damaged or destroyed building or improvement and pursue the
repair, reconstruction, or replacement with reasonable diligence so that the building shall be restored
to substantially the condition it was in prior to the happening of the casualty; provided, however, that
if commencement or completion of such repairs is delayed through no fault of LESSEE and is due
exclusively to a civil commotion, action of God, strikes, governmental restrictions or regulations, or
interferences, or any other reason beyond the control of the LESSEE, whether similar to any of those
enumerated or not, the time for commencement or completion, or both, of the restoration will
automatically be extended for the period of such delay.
15. That LESSEE will not assign this Lease or sublet the leased premises or any part
thereof without the written consent of LESSOR, in writing, first had and obtained.
16. That LES SEE shall not cause or permit any mechanics' liens or other liens to be filed
against the fee of the premises or against LESSEE's leasehold interest in the land or any buildings
or improvements on the leased premises by reason of any work, labor, services, or material supplied
or claimed to have been supplied to LESSEE or to anyone holding the premises or any part of it
through or under LESSEE. If such a mechanic's lien or materialman's lien is recorded against the
premises or any building or improvements on the premises, LESSEE shall either cause the same to
be removed or, if LESSEE, in good faith, desires to contest the lien, take timely action to do so, at
LESSEE's sole expense. If LESSEE contests the lien, LESSEE agrees to indemnify LESSOR and
hold LESSOR harmless from all liability for damages occasioned by the lien or the lien contest and
Lease Agreement - Page 6
shall, in the event of a judgment or foreclosure on the lien, cause the lien to be discharged and
removed prior to execution of the judgment.
17. That, at all times during the term of the Lease, LESSEE shall keep all buildings and
other improvements located or being constructed on the premises insured against loss by damage by
fire, with extended coverage endorsement of its equivalent. This insurance shall be carried by
insurance companies authorized to transact business in Texas, selected by LESSEE and approved by
LESSOR whose approval shall not be unseasonably withheld. The insurance shall be paid for my
LESSEE and shall be in amounts not less than the full amount of the insurable value of the buildings
and other improvements. Such policy or policies of insurance shall name LESSOR and LESSEE as
named insured.
18. That LES SEE agrees to obtain and maintain construction liability insurance at all times
when demolition, excavation, or construction work is in progress on the 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 my LESSEE. This insurance shall have
limits of not less than $100,000 for property damage and $250,000 for one person and $500,000 for
one accident for personal injury and shall protect LESSOR and LESSEE, as well as any other person
or person 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 premises.
19. 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
premises resulting from LESSEE's, LESSEE's invitees, agents, servants or employee's use, and
Lease Agreement - Page 7
LES SOR shall not be liable to LES SEE, LES SEE's invitees, agents, servants, employees or visitors
due to the improvements located thereon, or hereafter constructed, or any other condition of the
premises being improperly constructed, maintained or being or becoming out of repair; LESSEE
hereby waives any defects therein and agree 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, and any
extensions hereof, keep and maintain, in full force and effect, a policy or policies of insurance,
providing at least $500,000.00 per person and $500,000.00 for any single occurrence for bodily injury
or death and $500,000.00 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 premises of said leased property, or any part thereof, as the result of the negligence of
LES SEE, LES SEE's invitees, agents, servants or employees, and shall pay all premiums due thereon
when due.
20. 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 LES SEE'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
Lease Agreement - Page 8
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. That
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,
notwithstanding the provisions of paragraph 28 of this Lease.
21. LESSEE shall not rent the 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.
22. That LESSEE shall not use, or permit the use of, said premises, or any part thereof,
for any purpose which would interfere with landing or taking off of aircraft at the airport, or which
is determined dangerous or hazardous to the airport operation by the Airport Manager. This includes
interference from such items as electrical or electronic equipment, creation of smoke or dust or
glaring or misleading lights.
23. That all runways and airport facilities shall be open to the general traveling public for
the landing and operating of aircraft therefrom without hindrance or interference on the part of
LESSEE.
24. That the LES SEE 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.
25. That the 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
Lease Agreement - Page 9
opinion of the LESSOR, would limit the usefulness of the airport or constitute a hazard to aircraft.
26. That LESSEE shall pay and discharge all taxes, 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 lease premises
during the term of this 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 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
assessments, or governmental charges which LES SEE 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 of paragraph 28 hereof.
27. That the LESSEE shall provide duly licensed aircraft engine and accessory
maintenance at Cox Field throughout the term of this Lease, or any extension hereof, and this Lease
is specifically conditioned upon such service being provided by LES SEE; in the event that said service
terminates or is inadequate, then LESSEE shall be in material default of this Lease and subject to all
remedies available to LESSOR for such default.
28. Should LESSEE default in, or fail or refuse to keep any of the covenants, conditions,
stipulations and/or provisions herein contained, notice hereof shall be given in writing to LESSEE
by LESSOR's Airport Manager, giving LESSEE thirty (30) days to correct such discrepancy, and,
Lease Agreement - Page 10
in the event such default, failure or refusal is not corrected within said thirty (30) day period, a second
notice, in writing, by certified mail, affording a hearing before the Airport Advisory Board, on a day
certain, shall be given to LESSEE by LESSOR's Airport Manager. After affording LESSEE such
hearing, the Airport Advisory Board shall recommend to the City Council that the Lease continue or
be terminated, and thereafter the City Council shall take such action as it deems necessary.
29. That the LES SOR has the right to temporarily close the airport or any of the facilities
thereon for maintenance, improvements, or for the safety of the public.
30. That the LESSOR may, at its option, terminate this Lease as to the entire hangar
building, or any part thereof, which may be necessary, in the event the LESSOR desires to use the
property, or any portion thereof, for necessary municipal functions, such as extension of runways or
erection of other airport facilities. In the event of either of the above contingencies, 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 the above specified 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 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 LES SOR be liable for a claim of lost profits, lost benefit,
or other similar claims as a result of termination under this paragraph.
31. 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.
Lease Agreement - Page 11
32. 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.
33. That, in the event of termination of this Lease by LESSOR, LESSOR shall be entitled
to the immediate possession of the premises. LESSEE agrees that it will not interfere with
LES SOR' s possession of the premises in any way if LES SOR takes possession under this paragraph.
34. That, in case any one 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 agreement.
35. 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.
36. That no amendment, modification, or alteration of this 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.
37. 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.
Lease Agreement - Page 12
38. That if, as a result of a breach of this Lease by LESSEE, LESSOR employs an
attorney or attorneys to enforce its rights under this Lease, then LES SEE agrees to pay LES SOR's
reasonable attorney's fees and costs incurred to enforce the Lease.
39. All notices required under this Lease must be given by certified mail or registered mail,
addressed to the proper party, at the following addresses:
LESSOR LESSEE
City Manager Jimmy D. Smyers
City of Paris P.O. Box 95
P. O. Box 9037 Powderly, TX 75473
Paris, TX 75461-9037
Either party may change the address to which notices are to be sent by giving the other party
notice of the new address in the manner provided in this paragraph.
40. That this Lease shall be binding upon, and inure to the benefit of, the respective heirs,
executors, administrators, legal representatives, successors, and assigns when permitted by this Lease.
41. That 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. 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.
Lease Agreement - Page
EXECUTED ON the dates shown in acknowledgments below.
CITY OF PARIS, LESSOR:
By:
Michael E. Malone, City Manager
ATTEST:
Mattie Cunningham, City Clerk
APPROVED AS TO FORM:
Larry W. Schenk, City Attorney
LESSEE
Jimmy D. Smyers
STATE OF TEXAS )
)
COUNTY OF LAMAR )
BEFORE ME, the undersigned authority, on this day personally appeared MICHAEL E.
MALONE, City Manager of the 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 26th day of March, 2001.
Notary Public, State of Texas
Lease Agreement - Page 14
STATE OF TEXAS )
COUNTY OF LAMAR )
BEFORE ME, the undersigned authority, on this day personally appeared JIMMY D.
SMYERS, 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
2001.
__ day of
Notary Public, State of Texas
Lease Agreement - Page 15