ORDER NU. ~.il&8 AF'PRUVAL_ OF AMEND RNll ASSIGN EXISTING LEASE OF FACIL_Tl"IES RT THE RIRF'URT BY RF2, LTD. Un this the iith clay of March, 199E, upon motion made by Commissioner Holekamp, seconded by Cmnmissinner Oehler, the Co~_rrt unanimously approved by a vote of 4-0-@, to amend and assign existing lease of facil.i.ties at the airport by RR, L_td. and a~..ithorize the J~_rdge to sign same. 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 Ltd. MEETING DATE: SUBJECT: (PLEASE BE SPECIFIC) OFFICE: TIME PREFERRED: EXECUTIVE SESSION REQUESTED: (PLEASE STATE REASON) ESTIMATED LENGTH OF PRESENTATION: IF PERSONNEL MATTER -NAME OF EMPLOYEE: NAME OF PERSON ADDRESSING THE COURT: ~~RR~rN -Th~~rnRr Time for submitting this request for Court to assure that the matter is posted in accordance with Title 5, Chapter 551 and 552, Government Code, is as follows: Meeting scheduled for Mondays: THIS REQUEST RECENED BY: THIS REQUEST RECENED ON: 5:00 P.M. previous Tuesday. All Agenda Requests will be screened by the County Judge's Office to determine if adequate information has been prepazed for the Court's formal consideration and action at time of Court Meetings. Your cooperation will be appreciated and contribute towards you request being addressed at the earliest opportunity. See Agenda Request Rules Adopted by Commissioners' Court. February 29, 1996 Commissioner's Court Kerr County, Texas Dear Commissioners, This request is being submitted by RR, Ltd. to amend and assign its existing lease of facilities at the airport. The reason for this request is to modify the "use clause" of the lease to include certain uses which were contained in the "Starflite" sublease agreement. This sublease agreement was approved by the City and County in 1990, however it expired in August, 1995. Under the current approved uses, RR, Ltd. has no way of generating any revenues to defray its annual operating costs (approximately $ 40,000.00). In addition, RR, Ltd. is requesting that the lease be assigned to Commercial Aviation, Inc. (a current partner of RR, Ltd.) as the other partners no longer have use of the facilities. Such an assignment will cause the monthly rental to the City/County to increase from $325.001 month to $494.00 /month, which is the newly published rate requested by the City. Although the hangar does not currently produce a positive cash flow and the rent will increase upon this assignment, Commercial Aviation, Inc. is willing to take over the lease obligation and maintain the hangar as it feels that the facilities are too good an asset to let deteriorate. The requested assignment and amendment were approved by the Joint Airport Advisory Board on February 21, 1996 and the City Council on February 27, 1996. Thank you for your consideration of this matter. RR,Ltd. oZ ~ '~ ~ 00 D _ Return to Kerr County CONSENT AND AMENDMENT TO LEASE AGREEMENT THE STATE OF TEXAS $ COUNTY OF RERR S WHEREAS, the City of Kerrville and the County of Rerr, as "Lessor", and RR, Ltd. ("RR, Ltd."), a Texas limited partnership, as "Lessee", entered into that certain Lease Agreement and an Access and Utility Easement Agreement of even date (collectively, the "Lease") dated December 15, 1980, covering 3.32 acres of land and a roadway and taxiway easement and access easement (collectively the "Leased Premises") at the Louis Schreiner Airport in Kerr County, Texas; and WHEREAS, the Lease has been amended by the First Amendment to Lease Agreement entered into in August, 1991; WHEREAS, RR, Ltd., desires to assign the Lease to Commercial Aviation, Inc. ("Commercial"); NOW, THEREFORE, in consideration of the premises and the covenants and conditions herein contained, Lessor, Commercial and Lessee hereby agree as follows: 1. Amendment to Use Clause. Paragraph 11 of the Lease Agreement is hereby deleted in its entirety and the following is inserted in lieu thereof: "Lessee's use of the Leased Premises shall be limited to the following: Aircraft Sales; Air Taxi Service, Airframe and/or Power Plant Repair; Radio, Instrument or Propeller Repair; Non-Public Aircraft Fuels and Oil Dispensing Service; Private Hangar Facilities (including the renting of private hangar and office space on a month-to-month basis), uses and purposes incident thereto, as provided in the Airport Policies and Standards and subject to the provisions thereof, and offices and storage for Lessee or its affiliates." 2. Amendment to Rental Clause. The Basic Rental under Paragraph 4.A. of the Lease Agreement shall be increased to $5,928.00 per year for the remainder of the 1996 lease year, payable in monthly installments of $494.00 each, payable in advance, commencing on the first day of the month following approval and execution hereof by the Lessor (anticipated to be April 1, 1996), and continuing to and including the December 1, 1996 Basic Rental payment. The CPI Adjustments to Basic Rental under Paragraph 4.B. will be applicable as provided in the Lease Agreement, except that (A) the "Base Index Number" shall be the Consumer Price Index Number as of October 1, 1995, being 449.6; (B) adjustments to rent will be effective January 1 of each year (commencing January 1, 1997) and the Anniversary Index Number shall be determined based upon the preceding October 1 of each such year; and (C) the "Basic Rental" for CPI calculation purposes will be the increased annual Basic Rental set forth above ($5,928.00 annual). 3. Consent to Assignment. Lessor hereby consents to the Assignment of the Lease from Lessee to Commercial and the parties agree that upon such assignment Commercial shall be the Lessee under said Lease Agreement and the Grantee under said Access and Utility Easement Agreement, that RR, Ltd., shall no longer be a party to those Agreements, and that the partners of RR, Ltd. other than Commercial shall be released from any liability or obligation under the Lease as to any defaults or other events occurring from and after the effective date of the assignment of the Lease. In consideration thereof, Commercial shall, and does hereby agree to, assume the Lease and the obligations of the Lessee under the Lease Agreement and the Grantee under the Access and Utility Easement Agreement, effective upon such assignment of the Lease. Executed and entered into in counterparts each of which when taken together shall constitute one Agreement, as of the day of February, 1996. (See attached signature pages). 2 - SIGNATURE PAGES TO CONSENT AND AMENDMENT TO LEASE AGREEMENT ATTESTED: CITY OF RERRVILLE By: f1~ ~ ~w+.~ By: City Clerk ~ Mayor Z-z APPROVED: WALLACE, MOSTY, MACHANN JACKSON & WILLIAMS City Attorney ATTEST: APPRO D: By: Co n y Attorney BY: SHELTON RANCH CORPORATION, General Partner COUNTY OF RERR By : ~ ~' /lam Name: Title: BY: By: Name Title: RR, LTD. W. F. Roden, General Partner BY: John H. Duncan, General Partner COMMERCIAL AVIATION, INC. By: Name: Title: BY: EQUUS CORPORATION INTERNATIONAL, General Partner By: Name Title: BY: PARDRIL, INC., General Partner By: Name: Title: BY: OKLAEOMA COLUMBIA PROPERTY COMPANY LIMITED PARTNERSHIP, General Partner JOINDER BY: Name: Title: The Rerrville-Rerr County Joint Airport Board in its advisory capacity, hereby consents to the foregoing Consent and Amendment to Lease Agreement. Executed as of the 26 day of Februa 1996. KERRVILLE-RERR COUNTY JOINT AIRPORT BOARD BY: Q-~`~-- ~ Name: Ruth Priest Title: Chairman C299~COnaent