S'i'A l 1: Of' TEXAS X
COUN'iY O~' KERR ~
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Lease Agreement entered into this ~lRti day o. 3uly, 1 i5~, ai Kerrville, Kerr
County, Texas, by and between Lis€or and Lessee herein.
WIiERE:BY SAID PARTIES F3AVr' MUTUALLY AGRr-k,D AS x OLLOtiVS:
TTEly; ONE.
PAFt TIES
Lessors are composed of the City o~' Kerrville, which is a municipal
corporation under .:he laws of the State o_ Texas and is the County Seat of Kerr County,
Zexae, acting herein by and through its N~.ayor and Gity Clerk, duly authorized to
execute this instrument by ordinance hareeo.ore properly passed by the City Council
of said Gity oa. Kerrville, and the County o-. Karr, State of Texas, which is a municipal
sub-division o3 the State of Texas, acting herein by and through ite Commissioners
Court, consisting of its County Judge and .our Commissioners, duly authorized to so
act by resolution hereLOfore passed by said Couatfo~ such purpose, and said City and
Coun::y being joint owners of the hereina#ter described property and i,assee is herein
designa~.ed as Mooney Aixcrait, Inc., a private corporation, duly incorporated under
the laws of the State of Kansas, having its principal place of business st the hereinafter
Hamad airport near the City of Kerrville, Kerr County, Texas.
ITFlv1 TWO.
SUBJECT MATTER
The hereinaaer described tends, together wi,;h the improvemema thereon, being
part. of the Louis Schreiner k'ield, Kerrville Iviunicipal Airport, situated about five (S)
miles Southeast of the City of Kerrville, in Kerr County, Texas; the lands hereby
leased and hereinafter described by me.ea and bounds have situated on thorn she
Gollowing described buildings, to wit:
The large hangar situated on said Louis Schreiner r ie13, which is known as
F4angaz No. 2 and is located on % ract One, hereafter described, and what is known as
Oid National Guard Armory Building, now known as the Administration L wilding and
now occupied by Mooney Aircra:.t, Inc. and which is located on Second Tract hereinafter
described by .field notes; said lands being a portion oz those lands described in a
Warranty -eed dated August 1¢~, 1 y41, from the Estates of Paul Ingenhurt, et al,
recorded in Volume 6b, page 3412, of the Deed Records of Kerr County, Texas:
FIRST' TRACT:
BEGINNING at a stake set 26t feet S. 38 deg. F.', and
658.8 .set N. 4 t deg. fl7' :~'. and S. 48 deg. 45' E'. 20. E
feet from the most Westerly corner of the Lauis Schreiner
4"~' r field, the Kerrville Municipal Airport;
THENCE N. 24 deg. 17' E'. 675.2 feet f:o an iron pin for
~l'y corner, the North corner of the herein described Tract;
THENCE S. 56 deg. 20' E, 452.0 feet to an iron pin for
~,~, ;,, corner, the East corner of the herein described tract;
_ ~ ~`' THENCE S. 33 deg, 4Q' Yv'. 71I feet to an iron stake for
A .,. the South corner o;: the herein described tract;
THENCE N. 48 deg, 45' W. 344.8 ;set to the place of
~` beginning, containing i. 25 acres of land.
SECOND TRACT:
BEGINNING at a point 20 :set S. 33 deg. 35' t+k. and 50
feet: N. 56 deg. 25' W, from the West corner of the
A. C. School Building, Type SB-12, known a~• the Airport
Administration Building, now occupied by Mooney Aircraft,
Inc., the West corner of the herein described tract;
THENCE' N. 33 deg. 35' E, 275.0 feet to a goint for the N.
corner of the herein described tract;
THENCE• 5. 56 deg. 25' E'.. 225.0 feet to a point for the
East corner of the herein described tract;
THE'NCE' S. 3~ deg. 35' 'YS'. 275. v^ feet to a point for the 5.
corner of the herein described tracf;
THENCE N. 56 deg. 25' yr. 226,0 feet to the place of
beginning, containing 1.43 acres of land, together with the
above described buildings located thereon.
Yt is specifically understood and agreed that na building shall be erected on the
lands hereby leaved closer than 550 feet from the center line o' the Nk /SW runway and
not closer than 425 feet from the center line of the NW/SE' runway.
ITEM THREE,
CGNSIDE:RAT'IG N
Lessee is bound and obligated:
(a) To pay io the Lessors a Kerrville, Kerr {:•oun•y, 'T'exas, ;.Tie sum a~ ~1,~~0
per year.
" ~, (b) To carry at its own expense and keep in full force and ef.ect adequate xire
R R.
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~ and extended coverage insurance upon the buildings which are hereby let to Lessee, in
an amount not less than i30% of the actual value of the structure at the time the policy
in force is written, or as much as fie obtainable not ..o exceed 80°fo of the value, it beinf
specifically understood and agreed that Leeaors will be named as additional interest
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in the policy; provided, however, char: this clause does no? apply to the Administration
Building, or building hereto:ore known as National Guard Armory, for the reason that
Lessors have eaid building covered with fire and extended coverage insurance and
which is fully paid up and which Lessee shall not be obligated to pick up and carry
until the present policy expires, at which time Lessee shall carry insurance up to 80/0
of the value as herein provided.
(c) i'o xnain.ain said buildings in a stas.e of good repairr at all times during the
lire of this lease, this provision contemplates that the painting now needed on eaid
buildings and repair now needed thereon shall be accomplished by Lessee within
eighteen (18) months from the date of this lease,
(d) To save and keep harmless Lessors in all respects by :reason of its
occupancy and use of the portion o said air:ield, and by reason of any acts of its
agents, employees, servants and any other person or thing on said prernises, to
effectuate which Lessee shalt carry liability insurance in the axnoun~a of not less than
$50, 000. 00 each person. $100, 000. 00 each accident, and $50, 004. 00 property damage,
showing Mooney Aircraft, Inc, ae Operator and Lessee, and the policy endorsed
showing the City of Kerrville. Texas and Kerr County, 'texas as collateral interest as
Owners and Leesore. All insurance policies covering all interest specified in this
lease shall be submitted to Lessors and shall be aublect to acceptance by Lessors by
their eiandards ae to company and/or group stability.
ITEM F rJUR,
'PE'RM OF LE.A5E
The lease of the above described buildings and prernises shall be for a term of
fifty (50) years, commencing August I, la5'7. ~~''~ kl'~ ~) `
I'IFM F'IVE:,
PURP(75E OF LrASI
It is particularly stipulated by the parties to thieleaeeagreement that the buildings
and premises hereinabove described and hereby leased are to be used for the sole and
only purpose of manufacture, design, storage, testing, service and repair of Mooney
aircraft, aircraft components and parts, and the ,manufacture, design, storage, testing,
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service and repair of dying targets and guided missiles, components and parts, and
such other purposes as may be incidental thereto.
ITL.M SIX.
UTILITIF :~
Lessee binds and obligates iieelf to pay to Lessors all water used by it at
going commercial rates, less sewage charges, which apply in the City o. Kerrville and
shall pay for all the electricity and natural gas used by it in its operations. Lessors
are obligated to provide water to Lessee at the going comr>~.ercial rates which apply
in the City of Kerrville, Kerr County, Texas; Lea see ie obligated .'o maintain at ire
own expense adequate sewage disposal in connection with its operation.
I1 E.M SE VEN,
GON,PLIANGE WITH REGULATIONS
Lessee obligates itself to comply with all regulations Est up by the Givil
Aeronautics Administration, Sederat, state anu municipal Laws, and will not permit
the premises covered by :his lease agreement to be used for any unlaw#ul or improper
purposae,
ITk:,M EIGHT,
OTHER PARTIES
Lessee recognizes that trans-Texas Airways has an operating agreement on
said Louis Schreiner ~ field, and ghat Robert L. Sicker, doing business as Kerrville
:.Flying Service, is Lessee of a portion of the airport and manager o said airport, and
hereby recognizes the rights of such parziea or others who may operate on the airport,
insofar as Louis Schreiner r'ield fie concerned, and accepts this lease agreement with
knowledge o such other operations on said field, or which may be on the field. Lessee
further acknowledges that Trans-Testae Airways and Kerrviila .r lying 4 ervice are
established on said airfield by written documents and lease agreements contemporaneous
with this lease agreement.
ITEM NINE,
TERMINATION
This lases agreement may be terminated by:
(a) Lapse of time
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(c) ?~ orfeiture in the even: Lessee fails zor any consecutive six (6) months to
have on their payroll regular employees leas than twenty (20j,emplayed on Louis
Schreiner Aix£ield. Kerrville lv3unicipai Airport. which condition of afraira would render
this lease agreement null and void and in which event Lessee agrees to deliver up said
premises. Should Lessee~e operations be discontinued for more than aix (b) months as
a result o; a strike or via major, such discontinuance shall not be considered as grounds
for termination o£ this lease agreement, and such period of *ime shall not be considered
a portion of the term of this tease.
(d) The United States Government requiring the use of said premises in the
evens o. a national emergency or for any defense program or defense purpose on the
part of the government, in which event Lessee agrees to deliver up possession within
ninety (~0) days after notice. Alter use by the Uni±ed States Government has terminated,
if in :act the government has taken over the airport, then the said Losses ie entitled to
re-enter the leased premises covered by this lease agreement and resume its operation,
and such lose of time shall be added to the ;erm of the lease agreement ao that the full
term may be enjoyed by Lessee without being penalized with the occupancy of the United
5tatiea Government. I. the United States Government dose take over said airport ae here
provided, then such time of occupancy by the governrnen'~ would be construed as coming
within the provisions a; sub-section (c) of this Isom Nine, and shall not be considered
as a lapse of this agreement.
(e) .Provided always, and these presents are upon this condition, that if Lessee
does not or shall neglect or fail to perform and observe any or either of the covenants
contained in this instrument which on its part are to be pe! Formed. or shall be
declared bankrupt according to law, or i£ any assignment shall be attempted to be made
of said property for the benefit ai creditors, then in either of said cases Lessors
lawfully may immediately or at any time thereafter, and whilst such neglect or default
continues, and without further notice or demand. enter into and upon the said premises
or any part thereof in the name o± she whole, and repossess the same as of their sormer
estate, and expel the Lessee and remove its e~fecta (forcibly, if necessary) without
being taken or deemed guilty o'' any manner of trespass, and without prejudice to any
remedies which might otherwise be used for possession or for arrears o+_' rent, and
that upon entry as a£oreeaid the rights of Lessee in this lease shall cease and be ended.
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O Should Lessee fail to perform and observe or neglect to perform any of tha
covenants contained in this agresment, Lessors are obligated to give to Lessee written
notice of such failure ox neglect to perform for a period of ninety (90) days within
which time Lessee shall have the opportunity to correct such neglect or omission,
after which pexiod of time inspection shall be had (to be made by competent engineers)
to determine whether compliance has been met before such failure or neglect to
perform may be considered as a ground for termination.
IT EN. T"EN.
DA1v,AGE T U BUILDINGS
It is further stipulated that in case the prernisee, or any part thereof, shall,
during the life of this lease agresment, be destroyed or damaged by fire, storm,
via major or other hazards eo that same shall thereby be rendered unfit for use by
the Lessee, then and in such event Lessors shall, with all expeditian~ put same in
proper condition for use by Leeeee; it being specifically understood and agreed that
atl insurance proceeds, damage paymen_s and proceeds from any and ail other
types of settlement provided for in Item Three (b) above shall be applied toward
restoring the improvements damaged or destroyed; and it is further understood
and agreed that the total expenditure o. Lessor for replacement and improvement
shall be limited to an amount: not to exceed 125%a of the proceeds from any and all
inaurancs policies.
I'TFM ELF VEN.
ALT'FRAT IONS AND ADDIT IONti
Lessee may, at its option, erect other buildings and improve~nsnta upon the
premises covered by this lease agreement :or its own use as above set forth, provided
that Leasore and Civil Aeronautics Administration shall first approve the location
thereof. A11 such buildings and irnprovemente shall remain the property of Lessee,
and may be moved by it ai the termination of this lease agreement or within a reasonable
time thereafter. Leaaee may not make major alterations or major additions to
buildings hereby leased without the consent and approval of Leraeora, but Lesaore
hereby approve all alterationa and additions heretofore made by Lessee.
ITE2v` 'i''h'ELVE.
DELIVERY OE' ??OSSESSIGN
Leaaee obliga~ee itself to deliver up possession of the premises covere+9 by this
tease agreemen in a good state of repair az the terminaciora of this contraci, whether
terminated by lapse o£ time, far£eiture, demand o£ the government. or otherwise,
normal wear and tear and lass by via major excepted.
ITEM THIRTEEN.
SUB-LE'ASF.
Leaaee shall not be permitted to sub-let the premises hereby leased except with
the written consent o£ Lessors, and then only when Leesee~s assignee and purchaser is
found by L.easors to be financially able to carry an Leasee~s business and obligations.
TTEIvI ~'OUl2TEE,N.
SUPPLY OF N.'ATEFtIALS, ETG.
It is further agreed that should a delay or discontinuance in Leaeee~e operations
be occasioned as a result of inability to purchase materials, equipment or other
essential components and parts required in Leasee~s operations as a result of short
supply, or should such materials, equipmen~, or components and parts be classified
by the United States Government as strategic and a priority be placed thereon by the
government thereby rendering it impoa.-ible for Lessee to obtain same for its operations,
then and in either of such events such period oz time shall not be eonaidexed as a
ground for terrninatian under the six months clause or otherwise, and such period of
delay or discontinuance for reasons above set out shall not be considered as part o~ the
term of this lease.
ITEM. F I.F'1"EEN.
NAINTE'NANCE O.E AIRPORT
Lessors agree and are hereby obligated to continue operations of Louis Schreiner
Air k"field, Kerrville Municipal Airport, during the period of this lease agreement, and
to maintain said airfield in good useable condition and repaix for which purpose it was
created.
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ITEM SIXT'EE'N.
~'NF'Oi7CEAi.~1T
AU righ;:s arising under and by virtue of the terms of this agreement shall be
maintainable in Kerx• County, Texas, only.
I'TEAl~ SE Vl•NTcE.N.
SUCCL:SSDRS AN33 ASSIGNS
'T'his agreement shall be binding upon the parties herein, their succea=ors and
assigns.
TN VdTTNr•SS Vs~HEREUr, this para.ies hereto have '~vreunto set their hands in
'~j l
duplicate this oay o July, 1''5'1, pursuant to ordinance and resolutions heretofore
enacted, duly authorizing the execution of this lease agreement by the signatories
appended hereto.
LESSC2R 5
CUUNTY C7F' KERB
Bys R
hn. R. Leavell, County Judge
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Commissioner Precinct No. 1
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Commmiseioner Precinct No. Z
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saioner
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t No. 3
LrSSE E"
CITY Oi' KERR MLLE:
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1~0a'?NEY AI.RGRAr T, INC.
By: L/A~ ~ ~G2-~/h_ ~~
Virgins Rachal, 5ecsetary
SEAL ' ~',
Hal k . Rachal, Prcexdent
L E .~ ^ h GRE~:i GIa'I'
CITY t,'F *XE_-~,.~,rI~T,F,.
and
Lessors
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i,CO,T;~ ~I:;CR:e2~" Inc.
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