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THE STATE OF TEXAS 4
COUNTY OF KERR q
KNOW ALL MEN BY THESE PRESENTS:
THIS LEASE AGREEI~ZEN'P, made and entered into by and 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
Clerk, duly authorized to exec ate tYiis 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 governmental subdivision of the State of Texas, act;ing
herein by and through its County Judge, duly authorized to so act by order heretofore passed
by the Commissioners Court of Kerr County, Texas, for such purpose as is recorded in the tTinutes
of said Court, and the said CITY and COUNTY being joint owners of the hereinafter described
property and Dugosh Aircraft Service Co, Inc., a 'T'exas corporation, hereinafter called Lessee.
WITNESSETH:
1.
SUBJECT MATTER
Lessors have this day leased and let, and by these presents do lease, let and demise
unto Lessee, upon the terms and conditions and subject to the matters he reinaftor set forth,
all of the following described real estate in Korr County, Texas, to-wit:
r^our and one-tenth (4.1) acr.os of land, more or less, out of and part of the 0. V, Robinson
Survey No, 4u., Abstract No, 282, described as follows:
BEGiNIdING at an iron pin set in the 41est line of a proposed 70-foot roadway easement, 7U
feet West of a fence corner post marking the northwest corner of lot or site No, 17 of Shady
Grove, a subdivision in Kerr County, Texas, according to the plat thereof recorded in Vol. 1,
page 1;8, Kerr County Plat Records;
THENCE South 88° West 300 feet to an iron pin for the Northwest corner of this tract;
TITEPdCE South. 02° East 450 feet to an iron pin for the Southwest corner of this tract;
TITEIICE South 48° 30' East 410 feat to an iron pin for the most southerly corner of said
tract; Said point also lying southwest of the proposed 70 foot roadway easement;
THENCE North 02° 1.7est 730 feet along the west line of said proposed 70 foot roadway ease-
meat to the PLACE OF BEGIPITdING, containing within these motes and bounds 4,1 acres of land
more or less.
II.
C ONS IDERATIOTd
In consideration of the foregoing, Lessee is bound and obligated:
(a) To pay to the Lessors at Kerrville, Kerr County, Te;cas, the sum of yy40.00 per month
due and payable on the 10th day of each month.
(b) 6dithin a reasonable time after the execution of this lease, Lessee will commence
and thereafter diligently prosecute and complete the construct;ion of a building to be used
for the purposes hereinafter set forth, except no unfinished <;orrogated galvanized metal shall
be used on exterior, same to contain not less than ten thousand square feet, and to be construct-
ed of fire-resistant material.
(c) Lessee will likewise construct and maintain a taxiw;~y at least twenty (20') feet in
width extending north from the north line of Runway 12 by the most direct route into the herein-
above described property. Said runway to be constructed to FAA approved taxiway specifications
and to be of sufficient width to accommodate twin-engine comm~arcial aircraft, The above taxi-
way is not to be topped as a part of the consideration of this contract, but may be topped
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with asphalt by the Lessee at a later date at his discretion.
(d) To provide and maintain his own water supply with such water meeting the require-
menu for State approval.
(e) To maintain the buildings constructed on said lands in a state of good repair at all
times during the life of this lease,
(f) To save and keep harmless Lessors in all respects by reason of its occupancy and
use of any portion of the airfield, and by reason o]° any acts of its agents, employees,
servants and any other person or thing on said premises, to effectuate which Lesser shall
carry liability insurance in the amounts of not less than ~y50,000 each person, X100,000.00
each accident, and $p50,000,00 property damage, showing Dugosh Aircraft Service Co „ Inc, as
Operator and Lessee, and the policy endorsed showin€; the City of Kerrville, Texas and Kerr
County, Texas, as collateral interest as Owners and Lessors. A11 insurance policies covering
all interest specified in this lease shall be submitted to Lessors and shall be subject to
acceptance by Lessors by their standards as to company and/or group stability,
(g) Lessee shall at all times during the continuance of this agreement, at his own
expense, provide for adequate and sanitary disposal of sewage in accordance with State Health
Department recommendations; keep the said premises free from trash, junk and garbage, and
provide for the off-airport premises disposal of any such trash, junk and/or garbage.
III.
TERM OF LEASE
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The Lease of the above described premises shall be for a term of twenty (2U) years,
however,
commencing from date of execution; provided/ that on or before the expiration date of the
primary term of this lease that Lessee shall have tYie right and option to renew this lease
for an additional 10 years for the same rental and candor the same terms, covenants and agree-
ments of this lease, Lessee shall have the right to exercise said option by giving notice in
writing by Registered Mail, addressed to Lessor at t;he same address rental checks are mailed
to, on or before ninety (90) days of the date of expiration of this lease,
IV.
PURPOSE OF LEASE
It is particularly stipulated by the parties to this lease agreement that the buildings
and premises hereinabove described and hereby leased are to be used for the solo and only
purpose of maintenance, service, repair, modification and testing of aircraft, aircraft
engines and pocaer plants, and the sale of aircraft parts, components and accessories, aircraft
instruments, aircraft engines and power plants, and such other purposes as may be incidental
thereto, excluding, however, herefrom the right to engage in the sale of petroleum products
used for aircraft fuel and engine lubricants,
V.
ROADWAYS
Lessors are obligated to provide the following facilities in connection herewith:
(a) Lessors agree to construct and maintain tYie road from the public road presently
serving Shady Grove Subdivision to the southeast coz•ner of said Tract, the same to be topped
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with gravel and to be of sufficient width to accomodate 2-lane traffic, and to fence said
road to the southeast corner of said tract,
VI.
COMPLIANCE 4lITH REGULATIONS
Lessee obligates himself to comply with all regulations set up by the Federal Aviation
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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.
VII.
TERMINATION
This lease agreement may be terminated by:
(a) Lapse of time;
(b) After the expiration of one (1) year from commencement of operations, forfeiture
in the event Lessee fails for any consecutive six (6) months to have on its payroll three (3)
regular employees employed on the loased premises, which condition of affairs would render this
lease agreement subject to cancellation, and in which event Lessee agrees to deliver up said -3-
premises. Should Lessee's operations be discontinued for more titan six (6) months as a result
of a strike or vis major, such discontinuance shall not be considered as ground for termination
oi' this lease agreement.
(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 Lesse© 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, than the said Lessee is entitled to re-enter the lease premises covered
by this lease agreement 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 being
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 withing the provisions of subsection (b) oi' this item VII, and
shall not be considered as a lapse of this agreement;
(b) 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 cases, but subject to subsection (a) hareinbelow, Lessors
lawfully may immediately or at any time thereafter, and whilst such neglect or default
continues, and after thirty (30) days 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 his 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 used for possession or for arrears of rent, and that upon entry as aforesaid the
rights of Lessee in this base shall cease and be ended;
(e) Should Lessee fail to perform and observe 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.
VIII,
DELIVERY OF POSSESSION
Lessee obligates himself to deliver up possession of the premises covered by this lease
agreement in a good state of repaix• at the termination of this contract, whether terminated
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by lapse of time, Forfeiture, demand of the government, or otherwise, normal wear ann tear
'~" expected,
IX.
SUB-LEASE
-1~- Lessee shall not be permitted to sublet the premises hereby leased except with the
written consent of Lessors, However, Lessee shall be permitted to hypothecate and mortgage
the premises hereof without the consent of the Lessors, In the event of a foreclosure by such
mortgagee, then the purchaser at any such foreclosure sale (including the mortgagee if it be
the purchaser) shall be substituted as Lessee under the terms of tnis lease and this lease
shall continue in full force and effect according to its terms; provided, however, that such
substituted Lessee shall promptly pay to Lessor any arrears of rent, if any there be, and
otherwise properly perform any covenants of this lease which Lessee had theretofore failed or
refused to perform,
X.
,,_. SUPFLY 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 Govern-
ment as strategic and a priority be placed thereon by the government thereby rendering it
impossible for Lessee to obtain same for its operation, then and in either of such events such
period of time shall not be considered as a ground for termination under the one (1) year
clause or otherwise.
XI.
MAINTENANCE OF AIRFORT
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 airfied in good, usable condition and repair, for which purpose it was created.
XII.
ENFORCEPFC:NT
Any cause of action arising out of and by virtue of the term of this agreement shall be
maintainable in Kerr Gounty, Texas, only.
XIII,
SUCCESSORS AND ASSIGNS
This agreement shall be binding upon the parties hereto, their successors, legal
representatives and assigns; and it is expressly ags•aed and understood that ii' any portion of
this lease agreement shall be declared invalid by the operation of any statute or by any court
decision, then and in either event, such partial invalidity shall never destroy or vitiate
the entirety of this lease.
XIV.
SUBSTITUTION OF LEASE AGREEMENT
J^~-5- This lease agreement is made and accepted in substitution of and in lieu of that certain
- lease agreement dated the 15th day of September, 1965, pursuant to Ordinance No. 65-12, duly
passed on third and final reading on the 15th day of September, 1965, the same being duly
recorded in Volume 18, pages 2J~.1 and 21.x.2, of the Minute Books of the City of Kerrville, Texas,
318
IN WITNESS WHEREOF, the parties hereby have hereunto set their hands in duplicate on this
the 9th day of November, 1965, pursuant to the ordinance and resolution heretofore enacted, duly
authorizing the execution of this lease by the signatories appended thereto.
LESSORS:
CITY OF KERRVILLE, TEXAS
By /s/ Glenn Petsch
/t/ Glenn Petsch, Mayor
ATTEST:
/s/ Kenneth Loyd
/t/ Kenneth Loyd, City Clerk
(SEAL)
COUNTY OF KERR
By /s/ Julius R, Neunhoffer
/t/ Julius R, Neunhoffer
County Judge
ATTEST:
/s/ Emmie M, Muenker (SEAL)
/t F~nmie M, Muenker, County Clerk
and Ex Officio Clerk of the
Commissioners Court of Kerr
County, Texas
By Estella Witt, Deputy
LESSEE:
DUGOSH AIRCRAFT SERVICE CO., INC.
By /s/ Charlie Leroy Dugosh
/t/ Charlie Leroy Dugosh, President
ATTEST:
/s/ M, L, Eichblatt
/t/ M, L, Eichblatt, Secretary
(SEAL)
THE STATE OF TEXAS q
COUNTY OF KERR ~
BEFORE ME, the undersigned authority, on this day personally appeared Charlie Leroy Dugosh,
President of Dugosh Aircraft Service Co „ Inc., a corporation, known to me to be the person
whose name is subscribed to the foregoing instrument, and acknowledged to me that ho executed
the same for the purposes and consideration therein expressed, in the capacity therein stated
and as the act and deed of said corporation.
GIVEYd under my hand and seal of office on this the 11th day of November, A,D, 1965.
(Seal) /s/ Betty L, Burney
Notary Public in and for Kerr County, Texas
Filed for record at 12:L}0 o'clock P, M,,
Nov 12 1965
Emmie M, Muenker ~
Clerk County Court, Kerr County, Texas ,~~
By Laverne Klein, Deputy
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