L E A S E
THIS AGREEMENT entered into this IOth day of January, 19V3,
at Kerrville, Texas by and between Lessors and Lessee herein,
WITNESSETH:
t.
PARTIES
This lease agreement supersedes and replaces lease agreement dated
the 25th day of May, 1958 between the Lessors as composed of the City
of Kerrville, which is a municipal corporation under the laws of the
State of Texas and is the County seat of Kerr County, Texas, acting
herein by and through its Mayor and City C-erk, duly authorized to
execute this instrument by ordinance heretofore properly passed by
the City Council of said City of Kerrville, and the County of Kerr,
State of Texas, which is a governcnental sub-division of the State of
Texas, acting herein by and through its County Judge, duly authorized
to so act by order heretofore passed by the Commissioners Court of
Kerr County, for such purpose as is recorded in the minutes of said
Court, and the said City and County being joint owners of the herein-
after described property and Lessee as herein designated as Mooney
Aircraft, Inc., a private corporation, duly incorporated under the
laws of the State of Texas, having its principal place of business
at the hereinafter named airport near the City of Kerrville, Kerr
County, Texas.
2.
SUBJECT MATTER
The hereinafter described lands, together with the improvements
thereon, being part of the Louis Schreiner Field, Kerrville Municipal
Airport, situated about five {5) miles Southeast of the City of
Kerrville, in Kerr County, Texas, the lands hereby leased and herein-
after described by metes and bounds have situated on them several
buildings, two of which are owned by Lessors, to wit:
The large hangar known as Hangar No. 2 located on Tract Une,
hereinafter described, and the frame structure known as Uld National
Guard Armory ;3uilding located on Tract No. Two, hereinafter described;
said lands being a portion of those lands described in a Warranty Deed
dated August 16, 1941, from the Estates of Paul Ingenhuett, et al,
recorded in Volume 66, Page 302, of the Deed i2ecords of Kerr County,
Texas, to wit:
T~2ACT ONE:
8€6-i'NFii~i~`'at an i ron stake set 100 feet NW from the NW
line of pavement of the NE-SW runway and 100 feet NE'
from the NE line of pavement of the NW-SE runway of said
airport, set for the South corner of this tract;
THENCE, along a line parallel to and I00 feet NW from the
NW edge of said NE-SW runway N. 35° 55' E. 1028 feet to an
iron stake set for the East corner of this tract;
THENCE, N. $6° 05' W. 572.7 feet to an iron stake in a
chain link fence, set for a reentrant corner of this
tract;
THENCE, N. 33° 55' E. 325 feet to an iron stake;
TNENCE,N. 56° p5' W. 203 feet to an iron stake in fence
line the SE line of that tract of land which was conveyed
by C. C. Chipman and wife to Philip F3. Pope by deed dated
Cecember 23, 1939, and recorded in Volume 6$ at page 390
of the Deed records of Kerr County;
THENCE, with fence line the SE -ine of said "Pope tract"
S. 46° O6' W. 885.7 feet to a large live oak tree;
TiIENL'E, with said "Pope" SE line S. 20° 38' W. 383.4 feet
to an iron stake set for a corner of this tract;
THENCE, S. 48° 30' E, along a line which is parallel to and
100 feet NE from the NE line of the paved NW-SE runway a
distance of 883 feet to the place of beginning.
TRkCT T;JO:
bE !~ at an iron stake set 100 feet NW from the NW
Tina of pavement of the NE-SrJ runway and 685.7 feet N. 33°
55' E. from the East corner of the aforesaid Tract No. One;
THENCE, alony a ling parallel to and 100 feet NMI from the NW
edge of said NE-SW runway N. 33° 55' E. 725 feet to an iron
stake set for the East corner of this tract;
THENCE, N. 65° 05' W. 1061.5 feet to an iron stake in the
center of the bed of Silver Creek, the North line of the
airport property;
THENCE, with the center of the bed of Silver Creek, S. 86° 42'W.
277.5 feet and S. 51° W. 303 feet to a point where said creek
centerline intersects the SW line of a county road formerly
the old Kerrville to Comfort highway at the North corner of
that tract of land which was conveyed by C.C. Chipman
and wife to Philip B. Pope by deed dated December 23, 1939, and
recorded in Yolume 65 at page 390 of the Deed itecords of Kerr
County;
THENCE, with the NE line of said '°Pope tract°' along the SW line
of said road, 5. 30° 27' E. 565.3 feet and S. 22° 09' E. (77.7
feet to a fence corner;
THENCE, with fence line the 5E line of said "Pope tract" S. 46°
06' W. 71.4 feet to an iron stake;
THENCE, S. 5b° 05' E, 414.4 feet to an iron stake;
THENCE, N. 33° 55' E. I¢5 feet to an iron stake;
THENCE, S. $6° OS' E. 315 feet to the place of beginning.
It is, however, expressly agreed by the parties hereto, all other
provisions of this lease to the contrary not withstanding that if,
at any time during the term of this lease, the Lessors shall regain
the right of possession and occupancy of the 9.04 acre tract of land
lyiny between the two tracts herein leased, and presently partially
under lease to the Kerrville flying Service, is described by metes
and bounds as follows:
(a) t3EGINNING at an iron stake set 100 feet NW of the NW line
of pavement of the NE-SVV runway of said airfield, set at a
point which is 1028 feet N. 33° 55' E, from another iron stake
set 100 feet NMJ from the N'rw' line of the NE-Sw runway and 100
feet NE from the NE line of the NW-SE runway;
THENCE, along a line parallel to and 100 feet NW from the
said NW line of the NE-SW runway, N. 33° 55' E. 685.7 feat
to an iron stake;
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THENCE, N. y6° 05' uV. 315 feet to an iron stake;
THENCE,S. 33° 55' W. 145 feet to an iron stake;
THENCE, N. $6° 05' W. 414.4 feet to an iron stake in fence line,
the SE line of the "Pope" property at a point 71.4 feet S. 46°
06' 1V. from a corner of same;
THENCE, with fence line the SE line of the "Pope" property
S. 4b° Ob' VV. 219.7 feet to an iron stake;
THENCE, S. $6° 0$' E. 203 feet to an iron stake for a re-entrant
corner;
THENCE, S. 33° 55' aV. 325 feet to an iron stake in chain link
fence;
THENCE S. $6° 0$' E. 572.7 feet to the place of beginning.
Lessors shall have the right to substitute the said 9.04 acre tract of
land for -the following portion of Tract No. 2 as herein leased:
(b) Bt61NNIN6 at en iron stake for the East corner of this
tract, marking the East corner of a 52.54 acre tract surveyed
for Mooney Aircraft, Inc., said corner being set 100 feet NW from
the NW line of pavement of the NE-SW runway of said airfield,
and it is located 2438.7 feet N. 33° 55' E. from another iron
stake set 100 feet NW from the NW line of the NE-SW runway and
100 feet NE from the NE line of the NW-SE runway;
THENCE, N. 5b° 05' W. 1061.5 feet to the North corner of the
aforesaid 52.54 acre tract in the center of the bed of Silver
Creek;
THENCE, with the center of Silver Creek, S. 8ti° 42' W. 277.5
feet and S. 51° W. 191.0 feet to an iron stake for West corner
of this tract;
THENCE, 5. 5b° 05' E. 1341 feet to an iron stake set 100 feet
NW from the NW line of pavement of the NE-SW runway;
THENCE, N. 33° 55' E. 350 feet to the place of beginning.
And it is further agreed that any assignment by or hypothecation of
the said Tract No. Two by Lessees under the provision of Section 13
of this lease shall subject to the rights of Lessors herein to make
the aforementioned substitution, and in event lessors shall desire
to exercise the herein reserved option of substitution they shall
give Lessee sixty (GO) days written notice and Lessee shall have
sixty (60) days to remove any of its property or improvements there-
from, doing so at Lessee's sole expense, and upon the expiration of
the said sixty (b0) day period, the substitute 9.04 acre tract shall
become subject to the then remaining term and then existing provisions
of this lease, and the herein previously described portion of Tract
No. Two shall become in all matters excepted from the then remaining
term and then existing provisions of this lease, and Lessors shall
have the right of entry upon and possession of such area in the same
manner as if it had never been subject to the terms of this lease.
3.
CONSIDERATION
Lessee is bound and obligated:
(a) To pay to the Lessors at Kerrville, Kerr County, Texas, the sum
of $1.00 per year.
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(b) Only when Lessee's net worth rating by Dun and Bradstreet is
less than X500,000.00, to carry at its own expense and keep in full
force and effect adequate fire and extended coverage insurance upon
the two above described buildings which are hereby let to Lessee
in an amount not less than 80 percent of the actual value of the
structural at the time the policy in force is written, or as much
as is obtainable, not to exceed 80 percent of the value, it being
specifically understood and agreed that Lessors will be named es
additional 'interest in the policy; provided, however, that this clause
will not apply to the Old Natianel Guard Armory Building until the
present existing policy thereon expires.
(c) To maintain said buildings in a state of good repair at all
times during the life of this lease.
(d} To save and keep harmless Lessors in all respects by reason of
its occupancy and use of the portion of said airfield, and by reason
of any acts of its agents, employees, servants and any other person
or thing on said premises, to effectuate which Lessee shall carry
liability insurance in the amounts of not lass than $50,000.00 each
parson, $100,000.00 each accident, and $50,000.00 property damage,
showing Mooney Aircraft, Inc. as Operator and Lessee, and the policy
endorsed showing the City of Kerrville, Texas and Kerr County, Texas
as collateral interest as Owners and Lessors. All insurance policies
covering all interest specified in this tease shall be submitted to
Lessors and aha{t b® subject to acceptance by Lessors by their standards
as to company andjor group stability.
4.
TERM OF LEASE
The lease of the above described buildings and premises she{1 be
for a term of forty (40) years, commencing January 10, 19b3.
5.
PURPOSE OF LEASE
It is particularly stipulated by the parties to this lease agree-
ment 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 aircraft, aircraft
components and parts, and the manufacture design, storage, testing,
service and repair of manned or unmanned aerospace vehicles, components
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and parts, and such other purposes as may be incidental thereto,
excluding however, herefrom the right to engage in the sale of
gasoline and oil for so long as the exclusive right to do so here-
tofore granted to Robert E. Seiker, doing business as Kerrville
Flying Service, or hereafter granted to any other contract operator
of the City-County Airport, is not denied or prohibited by duly
constituted legal authority.
6.
UTILIT9ES ANU ROADWAYS
Lessors are obligated to provide water to Lessee at the going
commercial rates which apply in the City of Kerrville, Kerr County,
Texas, and is obligated to provide the following facilities in
connection herewith;
(a) Water tower of approximately 100,000 gallon capacity is to
be erected.
(b) Suitable water mains, and fire plugs to provide an adequate
water aupply for fire protection will be provided. The tower and
water mains are to be so constructed and arranged that the water
supply can be used for a fire protection sprinkler system, in any
and all buildings located on the lease premises; or premises adjacent
thereto.
(c) The well and water system will be maintained in working order
and a reasonable aupply of spare parts will be available to insure
reliable water service.
(d) Lessors shall continue to have the right to maintain for the
convenience of the general public and for access to the Kerrville
Flying Service lease area the portions of the two presently existing
access roads lying within the tracts herein leased, such right to
continua for so long as no portion of such roadways is required by
Lessee for the purpose of providing a site for the erection of any
building or structure, and in event any portion of such roadways or
subsequently constructed roadways is required by Lessee as a portion
of a site for the erection of a building or structure, Lessor shall
be obligated to relocate such affected portions of such access roads,
with Lessee agreeing hereby to make available the use of the necessary
land required for such relocation, either within the boundaries of the
tracts herein leased or within the boundaries of any adjacent land
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leased by Lessee herein from third parties. 50 long as the 9.04 acre
tract is excluded from this lease, access thereto shall be at a point
which lies West of the existing building known as the Old National
Guard Armory.
(e) In addition to the rights and obligations vested in Lessors by
Paragraph (d) of this section, Lessors shall retain the right to
construct an access road running in a Northeasterly direction across
the leased area designated as Tract Two herein, the right to construct
such road being reserved to Lessors in event Lessors require such
access to portions of the airport property lying to the East of Tract
Tao or for' access to that portion of the Peterson Foundation Lands
proposed to be leased or sold to the Kerr County Industrial Foundation,
which tract lies on the North side of and across silver Creak from
the Airport Property; provided, however, that any access roads construct-
ed shall not interfere with any sites required by Lessee for the erection
of any building or structure.
(f) Lessee is obligated to maintain at its own expense adequate sewage
disposal in connection with its operations in accordance with State
Health Department requirements.
7.
COMPLIANCE WITH REGULATIONS
Lessee obligates itself to comply with all regulations set up
by the Federal Aviation Agency, federal, state and municipal laws,
and will not permit the premises covered by this lease agreement to
be used for any unlawful or improper purposes.
8.
OTHEi2 PARTIES
Lessee recognizes that Robert E. Seiker, doing business as
Kerrville Flying Service, is Lessee of a portion of the airport and is
Manager of said airport, and hereby recognizes the rights of itobert E.
Seiker under the terms of said lease.
9.
GERMINATION
This lease agreement may be terminated by:
(a) Lapse of time;
(b) Forfeiture in the event Lessee fails for any consecutive six
(b) months to have on their payroll regular employees less than
-b-
twenty (20} employed on Louis Schreiner Airfield, Kerrville Municipal
Airport, which condition of affairs would render this (ease agreement
null and void and in which event Lessee agrees to deliver up said
premises. Should Lessee's operations be discontinued for more than
six (ti) months as a result of a strike or via major, such discontin-
uance shall not be considered as grounds for termination of this lease
agreement, end sucFi period of time shall not be considered a portion
of the term of this lease;
(c) The United States Government requiring the use of said premises
in the event of 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 (90) days after notice.
After use by the United States Government has terminated, if in fact
the government has taken over the airport, then the said Lessee is
entitled to re-enter the leased premises covered by this lease agree-
ment and resume its operation, and such loss of time shall be added
to the term of the lease agreement so that the full term may be
enjoyed by Lessee without boring penalized with the occupancy of
the United States Government. If the United States Government does
take over said airport as here provided, then such time of occupancy
by the government would be construed as coming within the provisions
of sub-section (b) of this Item 9, and shall not be considered as a
lapse of this agreement;
(d) 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 performed, or shall be declared bankrupt
according to law, or if any assignment shall be attempted to be made
of said property for the benefit of creditors, then in either of said
eases, but subject to sub-section (e) hereinbelow, 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 of
the whole, and repossess the same as of their former estate, and
expel the Lessee and remove its effects (forcibly, if necessary)
without being taken or deemed guilty of any manner of trespass,
and without prejudice to any remedies which might otherwise be
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used for possession or for arrears of rent, and that upon entry as
aforesaid the rights of Lessee in this lease shall cease and be ended;
(e) Should Lessee fail to perform and observe or neglect to perform
any of the covenants contained in this agreement, Lessors are obligated
to give to Lessee written notice of such failure or 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 period
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.
10.
DAMAGE TO BUILDINGS
It is further stipulated that in case either or both of Lessors'
two buildings, above described, or any part thereof, shall, during the
life of this tease, be destroyed or damaged by fire, storm, vis major
or other hazards so that same shalt thereby be rendered unfit for use
by Lessee, then and in such event, Lessee shall, at its sole cost
and expense and with all expedition, put same in proper condition for
use by Lessee, but they shall remain the property of Lessors.
ALTERATIONS AND ADDITIONS
Lessors hereby approve all buildings, improvements, alterations
and additions heretofore erected by lessee and Lessee may, at its
option, erect other buildings, improvements, alterations, and additions
upon the premises covered by this lease agreement for its own use as
above set forth. All such buildings, improvements, alterations and
additions shall remain the property of Lessee end may be moved by it
at the termination of this lease or within a reasonable time thereafter.
12.
DELIVERY OF POSSESSION
Lessee obligates itself to deliver up possession of the premises
covered by this lease agreement in a good state of repair at the
termination of this contract, whether terminated by lapse of time,
forfeiture, demand of the government, or otherwise, normal wear and
tear excepted.
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13.
SUS-LEASE
Lessee shall not be permitted to sub-tet the premises hereby
leased except with the written consent of Lessors. However, Lessee
shall be permitted to hypothecate the premises hereby without the
consent of Lessors.
14.
SUPPLY OF MATERIALS, ETC.
it is further agreed that should a delay or discontinuance in
Lessee's operations be occasioned as a result of inability to purchase
materials, equipment or other essential components and parts required
in Lessee's operations as a result of short supply, or should such
materials, equipment 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 impossible for Lessee to obtain
same for its operations, then and in either of such events such period
of time shall not be considered as a ground for termination under the
six (6) months clause or otherwise, and such period of delay or discon-
tinuance for reasons above set out shall not be considered as part of
the term of this lease.
15.
MAINTENANCE OF AIRPORT
Lessors agree and are hereby obligated to continue operations
of Louis Schreiner Air Field, Kerrville Municipal Airport, during the
period of this lease agreement, and to maintain said airfield in good
useable condition and repair for which purpose it was created.
16.
ENFORCEMENT
Any cause of action arising out of and by virtue of the terms
of this agreement shall be maintainable in Karr County, Texas, only.
17.
SUCCESSORS AND ASSIGNS
This agreement shall be binding upon the parties herein, their
successors and assigns.
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IN WITtrESS WHEREOF, the parties hereto have hereunto set their
hands in duplicate on the day and year first above written, pursuant
to the ordinance and resolution heretofore enacted, duly authorizing
the execution of this lease by the signatories appended hereto.
LESSORS
COUNTY OF KERB
/ ~~
uj us eunho er, ount ~v, wage
1
CITY OF KERRYILLE
y;/~'
o er, ayor
ATTEST. ~ ~''. •uen er, C er~' ATTEST:~'S•l ~~ ~~~""~~
e~ ~ I - k r~ed.,__A. eat, ty~Ter~c
and ExOf€~cio Clerk of the
Co~m'isaioners Court of Kerr Co.,
Texas,
LESSEE
ATTEST:
~.~. ~,.
, unnicutt, ecy.- recs.
A900NEY AIi2CRAFT, INC.
a Rac a real ent
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CITY OF KERRVILLE, TEXAS
ORDINANCE NU. 63-i
AN GRDINANCE TU BE TITLED "AN ORDINANCE LEASING
A PORTION OF LOT3I5 SCHREINER FIELD, KERRVYLLE MUNI-
CIPAL AIRPORT TU :viGONEY AIRCRAFT, INC.; PROVIDING
FUR THE AREAS LEAS£D, THEIR TERMS CF SUCH LEASE, THE
CONSIDERATION SUPPCiRTING SAME AND FLING T11E
RIGHTS GF THE CITY GF KERRVILLE AND TfiE LESSEE AND
CGTHER PARTIES UNDER THE TERMS GF SUCH LEASE, AND
PRGViLXNG FCR TERl~1INATION IN CERTAIN EVENTUALITIES, "
WHEREAS, certain portions of Louis Schreiner Field, Kerrville P.4unicipal
Airport are now occupied by Mooney Aircraft, Inc.; and,
V4'YIEREAS, Mooney Aircraft, Inc, is now manufacturing airplanes an the
portion of said Airport occupied by it; and,
WHEREAS, the operation of such industry cannot be properly conducted,
and business with other concerns and suppliers cannot be carried forward on a
business basis without Mooney Aircraft, Inc, having its occupancy of pardons
of said Airport fixed for a definite period of time by a written lease agreement
with the City of Kerrville; and,
WHEREAS, the responsibility of the City and said industry is uncertain and
must be established for the benefit of said parties as well as the general public;
and,
WHEREAS, it is the mutual desire of the City of Kerrville, and Priooney
Aircraft, Inc. that the lease agreement made a part of this ordinance be executed
and concluded.
NCVd THEREFORE BE IT ORDAINED by the City Council of the City of
Kerrville, Ken County, Texas:
SECTION ONE: That the 1vlayar of the City of Kemilie be and he is hereby
authorized to execute on behal# of the City of Kerrville a proper lease agreement
with said Mooney Aircraft, Inc, and further that it be attested by the City Clerk,
and approved as to form and correctness by the City Attorney.
SEGTICN TWO: That the lease agreement be of the language and tenor set
forth in the copy of the lease agreement attached hereto and made a part hereof as
if though cot~ied herein word far word, such lease agreement having been submitted
to the Council of the City of Kerrville, and the same having bean read, studied and
understood and approved in nil details by all members of such Council.
SECTIOIif THREE: Thnt the lease agreement be in effect from and after
January 10, 1963, for a period of forty (40) years.
SECTION FOUR: That all agreements or writings in conflict with this lease
agreement are hereby cancelled and repealed and held for naught.
SECTION FIVE: The County of Kerr, State of Texas, being own®r of an un-
divided one-half interest in thepremfses hereby leased has this day approved
the lease agreement herein set forth and has executed same.
PASSED AND APPROVED UN THE FIRST READING THIS 10th day of January,
1963.
PASSED AND APPROVED ON THE SECOND READING THIS 23rd day of
January, 1963.
PASSED AND APPROVED ON THE THIRD AND FINAL READING THIS 7th
day of February ,1963.
/s/ C. R, Toler
MAYOR, CITY OF KERRVILLE
ATTEST:
/s/ Fred A. M. West
CITY CLERK, CIT`_' OF KERRVILLE
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THE STATE OF TEXAS
COUNTY OF KERB I, EMMIE M. MUENKER, County Clerk of said County, do hereby certify
that the foregoing instrument dated the ~ ~__ day of _ JaAU3r~_ _ A. D. 191i~, with its
certificate of authentication was filed for record in my office on the _ g day of _ Februa~
A. D. 19 63 at ~~_ o'clock P M. and duly recorded _ ~ _ day of NTarrh
soners Court
A. D. 19 6~, at ~~ o'clock ~M., in thef°ilT1.L1L~4~4mmis~records of said County, in Volume
_ L-, on page ~_.
In Testimony `Vhereof, witness my hand and official seal, this ~`_._- day of March
19~.
EMMIE M. MUENKER
County Clerk, Kerr County, Texas.
A. D.
By _ Deputy.