ORDER N0. 20939 APPROVAL OF LEASE TERMINATION AGREEMENT IN CONCURREPdCE WITH THE CITY OF KERR WITH TEX-APPRAISE AT THE CITY/COUNTY AIRPORT On this the 26th day of May 1992, upon motion made by Commissioner Lackey, seconded by Commissioner Holekamp, the Court UNANIMOUSLY APPROVED BY A VOTE 'OF 4-0-0, to terminate the Lease Agreement in concurrence with the City of Kerrville, with Tex-Appraise at the City/County Airport and authorization of the County Judge's Signature on Termination Agreement. COMMISSIONERS' COURT AGENDA REQUEST *PLEASE FURNISH ONE ORIGINAL AND FIVE COPIES OF THIS REQUEST AND DOCUMENTS TO BE REVIEWED BY THE COURT MADE BY: R„r~,, T ~,.UA~, MEETING DATE: rtay 26, 1992 OFFICE: Commissioners' Court TIME PREFERRED: SUBJECT: (PLEASE BE SPECIFIC) Approve lease termination agreement, in concurrence with the City of Kerrville, with Tex-Appraise at the City/County Airport. EXECUTIVE SESSION REQUESTED: YES NO x PLEASE STATE REASON FOR EXECUTIVE SESSION ESTIMATED LENGTH OF PRESENTATION: PERSONNEL MATTER - NAME OF EMPLOYEE: NAME OF PERSON ADDRESSING THE COURT: commissioner Pct. liz Time for submitting this request for Court to assure that the matter is posted in accordance with Article 6252-17 is as follows: * Meetings held on Monday: 12:00 P.M. previous Wednesday THIS REQUEST RECEIVED BY: is THIS REQUEST RECEIVED ON : 5/20/92 ~ 9:30 am All Agenda Requests will be screened by the County Judge's Office to determine if adequate information has been prepared for the Court's formal consideration and action at time of Court meetings. Your cooperation will be appreciated and contribute towards your request being addressed at the earliest opportunity. See Agenda Request Guidelines. KERRVILLE, TEXAS May 15, 1992 Kerr County Courthouse 700 Main Street Kerrville, Texas 78028 Mr. Butch Lackey, Kerr County Commissioner/ Ex-officio Member of Airport Advisory Board Subject: Termination of Lease with TexAppraise at City/County Airport Dear Butch: During the March 18, 1992 Joint City/County Airport Advisory Board meeting, I was asked to initiate an Agreement for Termi- nation for the TexAppaise Lease at the City/County Airport. I have had the city attorney draft the Termination of Lease Agreement. It was presented and passed by the Kerrville City Council at their May 12, 1992 meeting (original enclosed). Please put this on the next County for their consideration and return also included the agenda bill which the May 12, 1992 meeting. I hope if you have any questions, please d me. I will be glad to make a pres sinner's Court should you desire. Commissioner's Court agenda to me when signed. I have was sent to Council for it is self-explanatory, but o not hesitate to contact entation before the Commis- As always I appreciate your help. Director of Public Services/ Airport Manager Sincerely, ~_~~~~ Randy Thomas RT/ls Enclosure 800 JUNCTION HIGHWAY • KERRVILLE, TEXAS 78028-5069 • 512/257-8000 TERMINATION OF LEASE AGREEMENT THE STATE OF TEXAS § COUNTY OF KERR § WHEREAS, by Lease Agreement ("Lease") dated January 3, 1991, the CITY OF KERRVILLE and the COUNTY OF KERR, as Lessor, leased to TEXAPPRAISE, INC., a Texas corporation, as Lessee, a plot of land of approximately 2.066 acres at the Louis Schreiner Field, Kerrville Municipal Airport, more particularly described in Exhibit "A" attached hereto and made a part hereof for all purposes; and WHEREAS, Article III, Paragraph 6 of the Lease provides that the Lessee's failure to begin substantial progress toward construction of improvements within one (1) year constitutes a waiver of the Lessee's rights under the Lease and a termination of the Lease; and WHEREAS, Lessee requested an extension of the time frame for completion of improvements but such request has been denied by the Lessor under the terms of the Lease; and WHEREAS, the Lessor and Lessee have agreed to enter into this Termination of Lease Agreement to reflect termination of the Lease and the rights, duties and obligations of the parties thereunder; NOW THEREFORE, for a sufficient consideration received by each, the undersigned Lessor and Lessee do hereby covenant, stipulate and declare that (A) Lessee has waived its rights under the Lease and the Lease has terminated in its entirety and (B) neither the Lessor nor the Lessee shall have any further rights, duties or obligations under the Lease. EXECUTED AND ~, 1992. DELIVERED effective LESSOR: as of the / z day of CITY OF KERRVILLE By. JO ERRING, JR., ay COUNTY O/F KERR By: (~ ~ f(LL-t- W. G. A Y, Cou y Judge LESSEE: TEXAPPRAISE, INC. By: BILLY SNOW, President APPROVED $Y TBE KERRVILLE/ KERB COUNTY JOINT AIRPORT BOARD By: Chairman APPROVED AS TO FORM: WALLACE, MOSTY, MACHANN, JACKSON & WILLIAMS E. DWAINE MACBANN Date City Attorney \~ THE STATE OF TEXAS § COUNTY OF KERR § This instrument was acknowledged before me on this the / z day of , 1992, by JOE HERRING, JR., Mayor of the City of Kerrville, o behalf of the City of Kerrville. ? M"y~ BHEILA IDAENE BRANp /Lti~~ ~~~n_ ~a-.,rd/ ~®~ ~ATE~ ~ Notary Pubic, State of Texas '~M ~ waasao~,.r~aa,aao -2- THE STATE OF TEXAS § COUNTY ,OE' K~RR § ' This iast~~ment was acknowledged before me on this the 26th day-~of May..`' , 1992, by W. G. STACY, County Judge of the County of Kerr; on behalf of the County of Kerr. `• PATRI IA D , ounty Clerk `.,'•., ~ BY ~ Oil. i/, deputy ,. ,'°-~" ~~~ Stat of Texas ~. t , Esther R. Garza THE STATE OF TEXAS $ COUNTY OF KERB $ This instrument was acknowledged before me on this the day of , 1992, by , Chairman of the KERRVILLE/KERR COUNTY JOINT AIRPORT BOARD. Notary Public, State of Texas THE STATE OF TEXAS § COUNTY OF KERR § This instrument was acknowledged before me on this the day of , 1992, by BILLY SNOW, President of TEXAPPRAISE, INC., a Texas corporation, on behalf of said corporation. Notary Public, State of Texas C138\67M1 -3- FIELD NOSE DESCRIPTIDN 2.066 ACRES Being a tract ^F 1=_nd containing 2.066 acres in the W.Ji. Pruitt Surveu Ne. 1521, Kerr County, Texas and being part ^F Tract 5 ^F a certain survey plat prepared by Curtis 'Frank Hicklen in 1°87 Far the City OF Kerrville and being morn parL-icularly described by metes and bcurds as Follows: HEGINNING at an iron rod Found in the north right of way line ^F Taxiway Delta for the southw_st comer of of said Tract 5 and the scuthwest corner eE the herein described tract; the northeast corner of said Survey No. 1521 heirs N 76 deg. 2`t' E 752.5 Feat, N 00 dog. O1' `i0" E 660.6 Feet, S 65 deg. 56' 33" E 279.u Feet, East 583 Feet and South 5 Eeet Erom said iron rod; THENCE with east line of Tract 4 of said Hicklen surveu plat end the west line of said Tract 5, N 13 deg. `;3' 20" W, '}00.03 Feet t^ an iron rod Found For a re-entrant corner of said Tract 5 and For the northwest corner eE the herein described tract; 1 :HENCE through the interior cF =_aid Tract S,"'N 76 deg. 2't' E, -c=__=.00 Ee.t to an iron rod sat For th°_ northeast corner aF the herein described tract; ~ T1;ENCE continuing thraueh the interior of said Iract 5, S 13 dec. ~?' ~ c0" E, 'i00.03 Feet t^ an iron rod sat in the north right of way line OF 1aX'_Wcy Delta FCr the SOLtheaSt.COrner eE the heroin descrl_e~:; trZCt; ' t TJiENL"E with L-hc south line eC said Tract 5 and the Werth right eE way line cF Taxiway 0°lta, S 76 de?. 2'f' W, 225.00 Eeet to the.FDINi OF 6EGIl`JNING and containing 2.066 acres, mare or Tess, Within then=_ r;=_~es and bounds. Exhibit "q" " h ~.1 ~ ~a ~.~ c~~cU BUSINESS OF THE CITY COUNCIL CITY OF KERRVILLE, TEXAS R10-31-90 SUBJECT: Termination of Lease with Tex-Appraise at City/County Airport FOR AGENDA OF: May 12, 1992 DATE SUBMITTED: May 7, 1992 SUBMITTED BY: Director of 2 T CLEARANCES: City Attorney Public Services EXHIBITS: Minutes of March 18, 1992 for Kerrville-Kerr County Joint Advisory Board, Termination of Lease Agreement AGENDA MAILED TO: Mr. Ri11y Snow, TexAppraise, Inc., 1021 Main Street, Kerrville, TX 78028 APPROVED FOR SUBMITTAL BY CITY MANAGER:~~ Expenditure Current Balance Amount Account Required: in Account: Budgeted: Number: $ N/A $ N/A $ N/A ~ N/A PAYMENT TO BE MADE TO: N/A APPROVED FOR SUBMITTAL BY ASSISTANT CITY MANAGER: SUMMARY STATEMENT During the March 18, 1992 Joint Airport Board meeting, a variance to the TexAppraise lease was discussed, TexAppraise went into a lease at the airport for office space January 3, 1991. They were requesting a variance to the section of their lease which requires that construction begin within one year. According to the lease if construction had not commenced within one year (January 3, 1992), the lease is considered terminated. After the matter was discussed with the Airport Board, it was mutually agreed that the lease be terminated. Based upon the recommendation of the city attorney, the attached termination agreement will need to be ap- proved by the respective bodies and TexAppraise. This document was drafted and has been reviewed by the city attorney. RECOMMENDED ACTION Staff recommends the lease termination agreement be approved by Council. These documents will then be forwarded to TexAppraise and the county for their concurrence. A copy of the TexAppraise Iease will be provided by Public Services should any Council mem- ber desire to review it. 3~ STATE OF TEXAS COUNTY OF KERR CITY OF KERRVILLE On Wednesday, March 18, 1992, the Kerrville-Kerr County Joint Airport Advisory Board met at 5:00 p.m., in the City Hall Council Chamber, 800 Junction Highway, Kerrville, Texas. PRESENT Stephen Drane Dr. John Davis Dale Gregory James Murphy Randy Thomas Clay Henckel E. Dwaine Machann Lolly Montes de Oca Vice-Chairman Member Member Ex-officio, City Council Dir. Public Services/Airport Mgr. City Street Superintendent City Attorney Recording Secretary ABSENT Ruth Priest Bill Goertz Butch Lackey VISITORS John G. Davis Carlton S. Davis Carol Postert Billy Snow Chairperson Member Ex-officio, County Commissioner 111 Crockett Dr., Kerrville, Tx. Kerrville Aviation, Inc. Kerrville Aviation, Inc. TexAppraise Inc. Vice-chairman Stephen Drane called the meeting to order. APPROVAL OF MINUTES Upon motion made by Dr. John Davis and seconded by Dale Gregory, the minutes of the regular meeting of February 12, 1992, were approved as presented. DISCUSSION OF AIRPORT ZONING BOARD Jay Lyons, of the Texas Department of Transportation (TXDOT), advises that as a condition of receiving state financial assistance, an airport sponsor shall adopt and enforce comprehensive airport zoning regulations to restrict the use of land and the height of structures adjacent to or in the immediate vicinity of the airport. TXDOT has provided all the necessary documentation for accomplishing this task. E. Dwaine Machann, City Attorney, informed the board that the proper documentation did not exist for the creation of the Kerrville - Kerr County Joint Airport Advisory/Zoning Board, as required by TXDOT. It will be necessary to have the existing board resign, have the City and County each appoint two members, then have the members appoint a fifth member as chairperson. The advisory/zoning board will then appoint a zoning commission to enact the required ordinances. After some discussion, the board agreed that all members would submit resignation letters to the airport manager, Friday, March 20, 1992, to expedite city and 35 comity action; and that the advisory and/or zoning board should be made up of the same members. Mr. Drano will contact Mr. Goertz to inform him of this matter, Mr. Thomas will advise Ms. Ruth Priest. DISCUSSION OF LEASE VARIANCE REQUEST BY TEXAPPRAISE, INC. In a letter dated 3/12/92 to Randy Thomas, E. Dwaine Machann, City Attorney, stated it appeared that the landlord, if it so desired, could grant an extension of the time frame for a commencement and completion of the improvements, if supported by a valid excuse. A different question is raised with respect to the waiver of rental payments for the two-year period of time. t He believed serious questions existed as to whether the city t and/or county could lease this land temporarily for no 'consideration. Therefore, unless he is requested to research r this issue further, he would recommend that the rent not be • suspended. Dr. Davis asked Mr. Snow for his opinion. Mr. Snow stated that in light of all the technicalities presented, he -would be agreeable with whatever the board decided. After some discussion, Mr. Snow formally requested termination of the lease. He did not want the city to incur any further expenses } researching this matter. Dr. John Davis made motion that a ! recordable termination of the lease be executed by the respective parties, and to note this was done in mutual { agreement; and if TexAppraise, Inc. comes back to renegotiate a t lease in the future, it should be remembered that Mr. Snow made timely payments and every effort in good faith to make this project work. Mr. Dale Gregory seconded the motion, all members present voted in favor. EXPIRING TERMS FOR RUTH PRIEST STEPHEN DRANE AND DALE GREGORY As part of business discussed earlier referencing the establishment of an airport zoning board, all airport advisory board members will submit resignation letters by Friday, March 20, 1992. REPORT OF RIBBON CUTTING/GRAND OPENING FOR RW 12/30 EXTENSION Carol Postert of Kerrville Aviation, Inc., reported a good turn out for the ribbon cutting ceremony. It was stated that approximately 73 people attended the function. i•Is. Postert inquired as to the procedure for getting permission to use the Kerrville Municipal Airport logo for different vendors to use during the 50th anniversary events. The board informed Ms. Postert that all requests and/or recommendations for ideas, funds, etc., should come from the committee planning the 50th anniversary celebration. Requests should be put forth to the board for recommendation to the airport sponsors. The sponsors will then formally approve or deny requests. Mr. Murphy, City Council Ex-officio, asked the committee to keep good records of the expenditures incurred. UPDATE OF CURRENT PROJECTS/STAFF REPORT Runway 12/30 Bump - a letter to TXDOT has been sent 2 ~3 Ei providing information and concerns regarding this situation. TXDOT officials will schedule an inspection of the runway depression. City staff continues to search for someone with the necessary equipment to do an infra-red type of asphalt overlay. A local contractor will consider doing the work if the entire runway is done. There may be difficulty finding someone willing to take the liability of a partial overlay. Aerial photos - Mr. Thomas has made contact with a couple of firms and believes it is possible to get the desired aerial photos and stay within the budgeted amount for this project. Spur 535 - Due to the current funding situation for the Texas Department of Highways and Public Transportation, it will be difficult for them to get this project off-the-ground. If the board desires to pur::ue this project it may be more feasible to petition the aviation division of the department of transportation for funding the roadway. HEAR VISITORS John G. Davis informed the board of some advertising ideas he plans to recommend to the airport sponsors for the 50th anniversary celebration. Dr. Davis said the board supported the ideas presented, and reiterated they should be directed to the board in a formal request for approval from the airport sponsors. ADJOURNMENT With no further business at hand, Dr. John Davis moved for adjournment, Dale Gregory seconded, meeting adjourned at 5:55 p.m. A PROVED Stephen Drone, Vice-chairman Kerrville - Kerr County Joint Airport Board Lolly Montes de Oca Recording Secretary 3 37 ORD~ ~' 20939 ~TT.ON ~TAti OF LE~EC[3R~CE ynTli AFPRO ~ SN SON ~,~ ~I'EX' O~OE~V,~ CI`T'Y/AUNTY AppgpT.5E ~RpQRT MaY 26, 1992 Vol 5 page 62~