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unanimously approved 6y a vote of 3-0-Q~, tt~r F'~a:;~:l.:.;t:i.or
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bk:11'r~ iipFilt Uil ;-f.'nU':_3{ lUi'1.
CITY OF KERRVILLE, TEXAS
RESOLUTION NO. 97-181
RESOLUTION AUTHORIZING LEASE AGREEMENT WITH
MOONEY AIRCRAFT CORPORATION FOR LEASE OF
PROPERTY AND BUILDINGS AT THE KERRVILLE/KERR
COUNTY AIRPORT
WHEREAS, Mooney Aircraft Corporation has requested to lease the property and buildings
located at the Kerrville/Kerr County Airport, more specifically described as Tract 19, as indicated on
the Airport Leasing Plan; and
WHEREAS, the City Council of the City of Kerrville, Texas, finds it to be in the public
interest to enter a lease agreement with Mooney Aircraft Corporation for such property and buildings;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
KERRVILLE, KERB COUNTY, TEXAS:
That the Mayor and City Clerk are hereby authorized to execute and attest, respectively, on
behalf of the City of Kerrville, Texas, a lease agreement with Mooney AircraR Corporation for the
lease of Tract 19, as described on the Airport Leasing Plan, recorded at Volume 6, Page 331, Plat
Records of Kerr County, Texas, the provisions of which agreement shall be substantially as set forth
in Exhibit "A", attached hereto and incorporated herein by reference.
PASSED AND APPROVED ON this the ~o day of_~(~Gc{' . -" D., 1997.
ATTEST:
Sheila L. Brand, City Clerk
APPROVED AS TO FORM:
_~~ ~ -
Kevin B. Laughlin, City Attorney
D",WPDDCSW IRPORTRES\Neeney Leue ~ Traa i9(K9L7
COMMERCIAL IIANGAR LEASE AGREEMENT AMONG THE
CITY OF [iL-RRVILLE, TE,l"AS, TILE COUNTY OP KERR,
TEYAS AND MOONEY AIRCRAFT CORPORATION, INC
THIS LEASE AGREEMENT, made this Z(o day of Qu 1997, by and among
the City of Kerrville, Texas, a home rule municipal corporation, h einafter called "City'', and the
County of Kerr, Texas, a political subdivision of the State ofTesas, hereinafter called "County" (City
and County sometimes collectively being referred to as "Lessor"), and Nloonev Aircraft Corporation,
Inc., whose principal ottices are located in Kerrville, Texas, hereinafter referred to as "Lessee",
RECITALS
WHEREAS, the Lessor owns and operates the Kerrville-Kerr Cormty Airport, located in the
City of Kerrville, Texas, hereinafter referred to as "Airport", and,
WHEREAS, Lessee desires to lease certain Lessor-owned facilities and land at the Airport
to engage in the business of aeronautics and provide certain aeronautical services, and Lessee desires
to provide certain aviation services to the public as hereinafrer permitted; and
NOW, THEREFORE, for and in consideration of the covenants and conditions herein stated,
Lessor and Lessee agree as follows.
ARTICLE 1 GRANT OP LEASE
1 Ol Leased Premises: Lessor agrees to lease to Lessee certain property owned by Lessor
located at the Airport and being more particularly described as Tract 19, as indicated on the Airport
Leasing Plan, recorded ai Volume 6, Page 331, Plat Records of Key r County, Texas, as well as the
Lessor-owned buildings and improvements located on said property, including all fixtures, apparatus,
and equipment located therein, said buildings and improvements and land hereinafter being referred
to collectively as the "Leased Premises."
1 03 Easements: This Agreement shall be subject to such easements, rights-of--way, drill sites,
or other rights or reservations affecting the Leased Premises which are of record or are clearly visible
as of the date of this Agreement, or which are shown on the Airport Leasing Plan, recorded at
Volume 6, Page 33 1, Plat Records of I{err County,
1 03 Acceptlnce of Leased Premises: Subject to the requirements of Section 7 O1, Lessee
accepts the buildings and improvements, including all fixtures, apparatus and equipment located
therein in the condition they are in at the commencement of the Lease Term, subject to all defects
therein, whether concealed or otherwise, and whether known or unknown to the Lessor, and does
hereby release and forever discharge the Lessor from any and all damages of every kind and nature
that may be in any way occasioned thereby. Lessee hereby further agrees to indemnify, defend, and
hold harmless City, County, and their respective officers, employees, and a~~ents, for any damages or
injuries arising from such defects.
ARTICLE 2 TERM O~ AGREEiV1ENT
2 Ol Lease Ternr This Agreement shall commence at 1201 a.m. on October 1, 1997, and
terminate at midnight on the September 3Q 2002, ("the Lease Term") unless terminated earlier
pursuant to the provisions of this Agreement.
2 02 Optionll Extension of Lease Term: Lessee shall have the option of extending the Lease
Term for three additional terms of five years each as follows
A. by providing to Lessor not earlier than October 1, 2001, and not later than April 1, 2002,
written notice of Lessee's desire to exercise the lease extension option for the period
commencing, October I, 2002, and ending, September 3Q, 2007;
B by providing to Lessor not earlier than October 1, 2006, and not later than April 1, 2007,
written notice of Lessee's desire to exercise the lease extension option for the period
commencing October I, 2007, and ending September 3Q 2012,
C by providing to Lessor not earlier than October I, 201 I, and not later than April 1, 2012,
written notice of Lessee's desire to exercise the lease extension option for the pcriod
commencing October 1, 2012, and ending September 3Q, 2017
2.03 Holdover of Lessee If Lessee holds over or remains in possession of the Leased
Premises after the termination of this Agreement in the absence of a new lease agreement between
the Lessor and Lessee, such continuation beyond the date of termination, or the collection or
acceptance of rent, tees and/or other charges by the Lessor, shall not be constn~ed as a renewal or
extension of this Agreement, but shall be construed solely as creating a tenancy at will and not for any
other term whatsoever. Dw ing the term of such tenancy at will, Lessee shall pay to Lessor the fees
and charges herein reserved, and Lessee shall be bound by and comply with all the relevant provisions
of this Agreement. The Lessor may terminate the tenancy at will by giving Lessee thirty (30) days
written notice thereof.
ARTICLE 3 RENT
3 0 L Amount of Base Rent: Lessee agrees to pay to Lessor rent for the Leased Premises in
the amount of $1,200.00 per month ("the Base Rent") commencing on October 1, 19J7, which Base
Rent shall be subject to adjustment as set forth in Section 3 02, below.
3.02 Adiustment of Rent During, Lease Term Extensions. The Base Rent for each extension
period of the Lease Term described in Section 2.02 above, shall be increased in accordance with
changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI--W) as
promulgated by the Bureau of Labor Statistics of the United States Department of Labor, using the.
year 1997 as a base of 1 UQ such increases to be determined as follows:
COMbIGRCIAL HANGAR LEASE AGRE~biENT AMONG TtiE CPPY
OE I~ERRVILLE. KERR COUNTY AND Vi00NEY AIRCRAFT -PAGE 2
A. For the period Gom October I, 2002, through September 30, 2007, the Base Rent shall bear
the same ratio to the Consumer Price Index for AugusC, ^_002, as $1,200.00 bears to the
Consumer Price Index for August, 1997
B. For the period from October 1, 2007, through September 30, 2012, the minimum rental shall
bear the same ratio to the Consumer Price Index for August, 2007, as $1,200 00 bears to the
Consumer Price Index for August, 1997
C For the period from October 1, 2012, through September 3Q 2017, the minimum rental shall
bear the same ratio to the Consumer Price Index for August, 2012, as 51,200 00 bears to the
Consumer Price Index for r\u~ust, 1997.
In no event, however, shall the Base Rent be less than $1,200 00 per month nor shall the Base
Rent du~in~ the last 10 years of the Lease Term be less than the Base Rent during the first 10 years
of the Lease Term. In the event that the Consumer Price Index ceases to incorporate a significant
number ofitems, or if a substantial change is made in the method of establishing such Consumer Price
Index, then the Consumer Price Index shall be adjusted to the figure that would have resulted had no
change occurred in the manner of computing such Consumer Price Index. In the event that such
Consumer Price Index (or a successui ui substitute index) is not available, a reliable governmental
or other nonpartisan publication, evaluating the information thereto for use in determining the
Consumer Price Index, shall be used in lieu of such Consumer Price Index.
3 03 Deliver~of Rent: All payments required of Lessee by this Agreement shall be
delivered by mail, or in person, to the OtJice of the Director of Public Services, City of Kerrville,
Texas, 800 Junction Highway, Kerrville, Texas 73023, or to such other location as specified in
writing by the Lessor from time to time, no later than the first day of each calendar month of the
Lease Term for which the payment is due, unless such due date falls on a Saturday, Sunday, or legal
holiday, in which case such rent shall be due on the first City business day following the date such
payment is due
3.04 Delinquent Rent Payments: In the. event that payments to the. Lessor for rent or other
fees or charges are not received by the Lessor on or before the tenth day following the due date,
Lessee shall pay a late rental charge of Two Percent (? 0%) of the rent amount due for that month.
All rent and other payments which are past due more than thirty (30) days shall accrue simple interest
at the rate of eighteen percent (18.0°~0) annually or (b) the maximum percentage rate allowed by taw,
whichever is less. Norivithstanding anything to the contrary in this Section 3 04, if at the time
performance of the provisions set forth in this Section 3 04 becomes due the interest to be paid in
accordance with this Section 3.04 exceeds the limits on the payment of interest established by law,
then the amount of interest to be paid sball be reduced to the maximum limit allowed by law;
furthermore, if, from any circumstances, Lessor should ever receive as interest an amount that would
exceed the highest lawhil rate, the amount that would be excessive interest shall be applied to the
payment of rent owing pursuant to the provisions of this Lease Agreement and not to the payment
of interest.
CONtMERCIAL HANGAR LEASE AGREEMENT' AMONG THE CITY
OF KERRVILLE. KERR COUNTY AND Ni00NEY AIRCRAFT - P:1GF, 3
3 OS A,p~icatirn~ of Amounts Received. Payments received shall be applied in the following
order (1) interest acciited for late payments, (2) late rental charges, (3) past due luel flowa~,e fees,
if any (4) past due rent, beginning with [he oldest amount due, (5) other past due amounts, (G) rent
currently due, (7) other amounts currently due
3.06 Other Charges: Nothing herein shall be deemed to relieve Lessee and its tenants,
sublessees, patrons, invitees and others from Airport use charnel, including fuel flowage fees paid
on fuel purchased by' Lessee, as are levied generally by the Lessor directly upon the operation of
aircraft, or from automobile parking permit fees for parking areas that are not included within the
Leased Premises, or Eiom security fees.
ARTICLE 4 USE OF LEASED PREMISES
4.01 Permitted Uses: Lessee shall be permitted to use the Leased Premises for the purpose
of conducting for-protit commercial aeronautical services or activities consistin~~ of any or all of the
following operations and no others.
A. Manufacture, repair and maintenance of aircraft, airframe, power plant, avionics, instruments,
and related equipment and components;
B. Sales of aircraft parts and equipment, and pilot supplies;
C Storage of such equipment and apparatus as may be incidental and/or necessary to Lessee's
operations, including motor vehicles operated and/or owned by Lessee, and
D_ Such other uses as may be permitted in writing by the Lessor
4 02 Prohibited Uses: Lessee agrees at all times to comply with the following:
A. Lessee shall at no time use, or permit the use of, the Leased Premises in a manner that is
contrary to applicable federal, state, or local laws, ordinances, rules, or regulations, which
shall include, but not be limited to, applicable Federal Aviation Administration Hiles and
regulations and applicable regulations for the use of the r\irport as may from time to time be
promulgated by the Lessor;
B Lessee shall not permit any permanent, unshielded light or illumination source to cause glare
as viewed from any street, adjacent properties or operating aircraft;
C. Lessee shall not cause or permit the burial or storage ahove ground on the Leased Premises
of any hazardous waste or materials, as defined by federal or state law, except in accordance
with applicable Federal, State, or local laws, ordinances, regulations and Hiles, as ma}~ be
adopted or amended from time to time;
CONIb[ERCIAL FIANGAR LEASE AGREEiVIENT AbIONG THE CITY
OF I{ERRVILLE, KERR COUNTY AND NIOONEY AIRCRAFT -PAGE 1
D Lessee shall not cause or permit any use or activity on the Leased Premises which would
create a hazardous condition for aircraft operating aC the Airport;
E Lessee shall not allow the Leased Premises to be used for parking of motor vehicles,
motorcycles, or motor driven equipment by anyone other than customers, employees, or
contractors of Lessee except as maybe authorized by the Director of Public Services, with
all such parking being, limited to areas designated by Lessor for such parking. Lessee shall
not be in default for the improper parking of vehicles over which neither Lessee nor any of
its subtenants, customers, employees, or contractors have any control;
F Lessee shall not allow scheduled airline passenger operations to be conducted on the Leased
Premises.
4 03 Compliance with Minimum Standards Al] activities conducted upon the Leased
Premises, whether by Lessee or its sublessees, shall be in substantial conformance with Title 3,
Chapter V, of the Code of Ordinances of the City of Kerrville, Texas, "Airport Rules, Re«ulations,
and Minimum Standards", as such regulations exist or may be duly amended from time to time by the
Lessor to the extent that such regulations apply to Lessee's operations
4 04 Non-exclusive Uses: Lessee understands and acknowledges that, as to that part of the
Airport not included within the Leased Premises, the allowable uses permitted herein are on a non-
exclusive basis with respect to other potential providers of aeronautical services at the Airport.
ARTICLE 5 OBLIGATIONS OF LESSEE WITH REGARD TO
CONSTRUCTION OF Iiy1PROVEMENTS
5 O l ApRroval of Construction Plans' At any time during the Lease Tenn and prior to any
construction, alteration, or changes to the Leased Premises or the improvements thereon, Lessee shall
submit to the Director of Public Services scaled plans and specifications of such construction, and a
site use plan with all drainage and utility services as existing or proposed indicated thereon. Lessee
is solely responsible for ascertaining the requirements of any and all, federal, state, or local
government agencies with regard to permit and application procedures necessary to obtain final
approvals and building permits prior to beginning any constriction on the Leased Premises Lessee
shall not commence any construction until it has received prior written approval from the Director
of Public Services and until the Lessee or the Lessor or both have received the necessary approvals
from the Federal Aviation Administration, the City's Building Official, and such other governmental
authorities as are necessary for the type of construction contemplated. In those instances in which
the Lessor is required to make application for constriction or alteration of the Airport due to the.
Lessor being the holder of the. Auport Operating Certificate, the Lessor agrees to promptly and
diligently make and prosecute such applications.
5 02 Ap_ proval of Plans Not Assurance of Desi<an Quality The approval by the Director of
Public Services or anyone else acting on behalf of Lessor of any plans and specifications applies only
COMMN;RCIAL EIANGAR LEASE AGREEMENT' AbIONG THF, CITY
OF KERRVILLE, kERR COUNTY AND MOONF,Y rURCRAFT -PAGE S
to the conformity of such plans to the general architectural and operational plan for the Leased
Premises and the Airport. The approval of the Director of Public Services does not constitute
approval of the quality of the architectural or engineering work performed Neither Lessor nor the
Director of Public Services assumes any liability or responsibility for the architectural or en~rineerin<<
design or for any defect in any building, or improvement constructed from the plans or specifications.
Constriction of any contemplated improvements shall be in accordance with the plans presented to
and approved by the Directnr nfPuhlic Services All constnictio^ work shall be subject to inspection
by a representative employed by the Lessor or an inspector from the City's Building Inspection
Department, or both, to determine that such work conforms to the plans and specifications approved
by the Lessor.
5 03 Contractor's Insurance: Bonds At any time construction activities are undertaken on
the Leased Premises, Lessee shall require that its contractor or contractors keep in force insurance
issued by a responsible insurance company or companies authorized to conduct business in the State
of Texas insuring the improvements during construction under Completed Builder's All Risk
Insurance, including tire, extended coverage, vandalism and malicious mischief, in an amount equal
to the full insurable value of such construction as the same progresses in order to insure continuity
of construction and ultimate completion despite damage or destruction suffered during the course
thereof. Furthermore, Lessec shall require all contractors performing constriction work on the
Leased Premises to provide payment and performance bonds issued by a responsible bonding
company or companies authorized to conduct business in the State of Texas for the full amount of
the cost of the constn~ction to be performed on forms which are in compliance with Chapter 223
of the Texas Government Code, as amended. The foregoing shall be made a part of any contract
between Lessee and its contractor or contractors. Tn the event Lessee does any construction work
itself, it shall comply with the all-risk insurance provisions hereof.
5 04 Compliance With Building Codes and Federal Standards. All improvements made to
the Leased Premises by Lessee shall comply with all applicable City Building Codes and Federal
standards fur construction of airport improvements in effect at the time construction commences as
well as all other applicable federal aviation regulations, if any
5 OS Encumbrance of Leasehold Estate: Lessee shall at no time encumber or attempt to
encumber its leasehold interest in the Leased Premises by deed of tnist, mortgage, security agreement
or other security interest without the prior written consent of the Lessor.
5 O6 Ownership of Buildings. Improvements and Fixtures: Any and all buildings,
improvements (including, but not limited to all aprons, taxiways and roadways), additions, alterations,
and fixtures existing on the Commencement Date or constructed or placed on any part of the Leased
Premises during the Lease Term by Lessor or Lessee, shall be considered part of the real property
of the Leased Premises, shall remain on the Leased Premises, and shall not be removed by Lessee or
any sublessee without the written consent of Lessor All improvements, additions, alterations, and
fixtures on the Leased Premises shall become the sole property of Lessor upon termination of this
A~,reement without compensation to Lessee, it being understood and a,reed by Lessee that the
CONIbIERC[AL HANGAR LEASE AGREEMENT AMONG THE CITY
OF KERRVILLE, IiERR COUNTY AND bIOONEY AIRCRAFT -PAGE C,
transfer of title to the Lessor of the buildings and improvements located on the Leased Premises at
the end of the Lease Term is additional consideration for this Agreement. Notwithstandin~~ the above,
Lessee shall have the righC at any time during Lessee's occupancy of the Leased Premises, ar within
a reasonable time thereatter, to remove any and all tiarnihire, machinery, equipment, or other trade
fixtures, owned or placed by Lessee, in, under, or on the Leased Premises; provided, however, prior
to the termination of the Lease Term, Lessee shall repair any damage to any buildin~~s or
improvements on [hc Leased Premises resulting from their removal. Any such personal propcrty
items or trade fixtures which are not removed within sixty (60) days after the termination date of this
Agreement shall become the property of Lessor as of that date.
5.07 Improvements by Lessor: Lessor agrees, at Lessor's cost, to install an additional 1=' b_y
12' overhead door at the building's loading dock after the commencement of the Lease Term.
ARTICLE 6 REPAIRS MANTENANCE AiVD RESTORATION
6 0l Maintenance by Lesson Lessor shall, at Lessor's sole expense, keep in good repair,
condition and appearance the taxiways and roadways which have been or may be constructed by
Lessor Lessor shall commence required repairs as soon as reasonably practicable after receiving
written notice from Lessee thereof. This section shall not apply in case of damage or destruction by
fire or other casualty, in which event the obligations of Lessor shall be controlled by Sections ~ 03
and 6 04 Except as provided in this Section 6.01 and in Sections 6 0 i and 6.04, Lessor shall not be
obligated to make repairs, replacements or improvements or any kind upon the Leased Premises, or
to any equipment, merchandise, facilities or fixtures therein, all of which shall be Lessee's
responsibility. Lessor agrces to perform the following repairs or maintenance after execution of this
Agreement but prior to the commencement of the Lease Term:
A. Repair leaks to the water service at the building interface with the interior plumbim~
B Repair existing roof leaks;
C Replace damaged interior ceiling tiles;
D Upgrade existing electrical service to the Leased Premises to comply with current electrical
codes and electrical service levels to be specified by Lessee not later than twenty (20) days
prior to the commencement of the Lease Term,
6.02 Maintenance by Lessee: Lessee shall, at Lessee's sole expense, keep the Leased
Ptemises and all improvements of any kind, which maybe existing at the commence~menY of the Lease
Tenn or erected, installed, or made thereon by Lessee after commencement of the Lease Term, not
required herein to be maintained by Lessor in eood repair, condition and appearance Without
limitation of the foregoing sentence, Lessee specifically acknowledges its obligations, at its sole
expense, to keep in good repair, condition and appearance the foundation, roof, exterior walls and
structural portions of the interior walls of the hangar located on the Leased Premises. This section
COM~IERCLIL HANG:~R LEASE AGREEMENT AMONG THE CITY
OF KERRVILLE. KERR COUNTY AND NIOONEY AIRCRAF'C -PAGE 7
shall not apply in case of damage or destruction by fire or other casualty, in which event the Lessor
shall be obligated to repair as provided in Sections 6 03 and 6 04 Lessee shall keep mowed and in
a sightly condition all landscaping and grass areas within the Leased Premises. Lessor shall be the
sole judge of the quality of Lessee's maintenance; provided, however, Lessor shall not unreasonably
withhold acceptance of said repairs or maintenance. Upon written notice by Lessor to Lessee, Lessee
shall be required to perform such reasonable maintenance under this Section 6.02 as Lessor considers
necessary [f such maintenance is not undertaken by Lessee within ten (10) days afrer receipt of
written notice, Lessor shall have the right to enter on the Leased Premises and perform the necessary
maintenance, the cost of which shall be borne by Lessee. Other items of maintenance for which
Lessee shall be solely responsible shall include, but not be limited to, the following:
A Janitorial serviccs, providing janitorial supplies, window washing, rubbish and trash removal,
B- Supply and replacement of light bulbs in and on all buildings (except lighting removed for
causing obstnictions or Aare);
C Replacement of cracked or broken glass in all buildings;
D Cleaning of interior stoppages in interior plumbing fixtures and drain lines up to the first
manhole or clean out outside of the exterior of the building where the stoppage occurred,
E. ReplacemenC of floor covering;
Maintenance of all doors and door operating systems, including weather stripping and Mass
replacement;
G Painting, repairing, and replacement of interior walls not resulting from structural failure,
H. Landscaping and grass cutting services within the Leased Premises, including, but not limited
to, repair or replacement of exterior building flood lights and planter lights;
Repair or replacement of heating, air conditionine, ventilation, electrical, plumbing, or
mechanical systems, or their respective components;
Nlaintenance of all aprons, ramps, and roadways that are constructed by Lessee
Subject to the provisions of Section 5.06, on the last day of the Lease Term, or on any sooner
termination, Lessee shall surrender the Leased Premises to Lessor in the same condition as received
and clean and free of debris, except Ebr fire and casualty damages or ordinary wear and tear
6 03 Substantial Damage or Total Destruction, Lessor's Options If the Leased Premises
or any building or buildings located on the Leased Premises are destroyed or substantially dammed
by fire or any other cause, the Lessor may:
COMMERCIAL HANGAR LEASE AGREEMENT AMONG THE CITY
OF KERRVILLE, iCERR COUNTY AND d1O0NEY AIRCRAFT -PAGE 3
A terminate this Lease as to the building or buildin rs dama~,ed or destroyed, or
B. rebuild the destroyed or substantially damaged building or buildings as expeditiously as
possible (but in no event more than one hundred eighty (180) days after the date of such
damage), and to treat this Lease as continuing in effect.
6.04 Substantial Daman=e or Total Destniction: Lessee's O bons If the Leased Premises or
any building or buildings located on the Leased Premises are destroyed or substantially damaged by
fire or any other cause, the Lessee may terminate this Lease as of the date of such dama~=e as to the
buildin; or buildings substantially damaged or destroyed and the land on which the building or
buildings were located if:
A. Lessee has not received written notice from Lessor regarding Lessor's election pursuant to
Section 6.0 ±, above within thirty (30) days after the date of such damage, or
B. the buildin~~ or buildings which have been substantially dama~~ed or destroyed cannot be
rebuilt within one hundred eighty (180) days after the date of such damage If any dispute
arises with respect to whether any damage is susceptible of repair within the one hundred
eighty (180) day period, the ability of Lessor to obtain a contract fug the completion of such
repairs within the one hundred eighty (180) day period shall be determinative of whether such
damage is susceptible to repair within such period.
6 OS Tempora~Y Facilities Durim, Reconshuction. In the event Lessor elects to treat this
Lease as continuing in effect as to that building(s) which are substantially damaged or destroyed,
Lessor is not obligated to provide temporary facilities to Lessee during any period of reconstruction.
6.06 Abatement of Rent Durim, Reconstniction or Upon Terminltion In the event Lessor
or Lessee elects to terminate this Lease as permitted by this Article as to the building(s) substantially
damaged or destroyed, Lessee's obligation to pay rent hereunder shall terminate as of the date the
building was damaged or destroyed If this Lease is terminated in its entirety as of the date of such
damage, Lessor agrees to promptly reimburse Lessee for any rent paid by Lessee attributable to the
period following the date of such damage. If this Lease is terminated as to some buildim__Ts as of the
date of such damage, any reimbursement of rent shall be credited toward the rent otherwise due
during the remainder of the Lease Term.
6 07 Partial Damage of Leased Premises Usab~: In the event any part of the building(s)
on the Leased Premises are partially damaged by fire or other cause so as to require repair, but remain
usable for the purposes permitted by this Agreement, then Lessor shall repair any such damage as
expeditiously as possible (but in no event more than one hundred eiglrty (180) days after the date of
such damage) and without cost to Lessee. Lessee shall remain obligated to pay rent and comply with
all other provisions of this Agreement.
COMbIERCIAL HANGAR LEASE AGREEMENT AMONG THE C[T~'
OF KERRVILLE. KERR COUNTY AND MOONEY AIRCRAFT - PAGE'J
6 04 Trash and Waste Rem~yal Lessee agrees to cause to be removed from the Leased
Premises, at its own expense, aII waste, garbage and rubbish, and agrees not to deposit same on the
Leased Premises except temporarily in waste or garbage containers provided by Lessee at Lessee's
expense Lessee further agrees that Lessee will store all parts, supplies, and other materials on tfte
interior of buildings located on the Leased Premises, provided, however, that anv parts or supplies
which must be kept outside because ofvolatility of the supply item or the size of the part will be kept
out ofview ~fthe puhlic traveling on public rights of way or other surrounding tenants by installation
of fencing or other means of screening approved by the Director of Public Services.
ARTICLE 7 ACCESS TO AND USE OF AIRPORT
7.01 Access to Air ort: Lessor shall maintain all roads on the Airport ~=wing access to the
Leased Premises in good and adequate condition for use by cars and trucks and shall maintain free
and uninterrupted access to the Leased Premises over said roads at all times; provided, however,
Lessor shall not be in default of this Agreement if access is interrupted for any of the reasons set forth
in Section 16 03, below
7.02 Rieht to Use Airport: Lessee and Lessee's employees, sublessees, and guests shall have
the rid*ht to use that part of the Airport and its facilities not included within the Leased Premises in
common with others authorized to do so Such use shall be subject to any and all applicable federal,
state or local laws, ordinances, statutes, Hiles, regulations, or orders of any governmental authority,
lawfully exercising jurisdiction over the Airport or the activities and business operations of Lessee,
including any limitations, restrictions or prohibitions affecting the aviation activities or operations of
Lessee
7 03 Vehicular Operations on the Airfield. No vehicles of Lessee, its employees, customers
or invitees will be allowed to operate on, or cross, the ~ unways of the Airport except pursuant to the
Airport Rules and Regulations.
7 0-1 Airport Certification Rules and Regulations Lessee shall comply with such rules that
pertain to its operation on the Airport under the Airport Certifications Rules of Federa] Aviation
Regulations Pact 139, as amended [14 CFR Part 139, as amended], to the extent such regulations are
applicable to the operation of the Airport.
7 0~ Airport Security Rules and Regulations. Lessee, its directors, ot7icers; employees, and
contractors shall comply with all federal and local Airport Security Regulations adopted by the Lessor
as such rules and regulations exist or may hereafter be amended. LESSEE AGREES TO
INDEMNIFY AND HOLD HARMLESS TAE LESSOR, ITS OFFICERS AND EMPLOYEES,
from any charges, fines or penalties that may be assessed or levied by the FAA or the Texas
Department of Transportation by reason of the NEGLIGENT OR INTENTIONAL FAILURE OF
LESSEE, TTS DIRECTORS. OFFICERS, EMPLOYEES, OR CONTRACTORS to comply
with such Airport Security Regulations.
COYINiERCIAL HANGAR LEASE AGREEMENT AMONG THE CITY
OF KERRVILLE, I<ERR COUNTY AND MOONEY AIRCRAFT' -PAGE 10
7 06 14 C_['.R. fart 77 Requirements Lessee agrees to comply with the notification and
review requirements set forth in Part 77 of the Federal Aviation Regulations [ 14 CFR Part 77] in the
event any future structure, antenna or building is planned for the Leased Premises, or in the. event of
any planned moditication of any present or future building, antenna or structure located on the Leased
Premises
7 07 Cnntml of Strictures: Lessee shall not erect nor permit the erection of any stricture or
oblect, nor permit the growth of any tree on the Leased Premises which highest point is above a mean
sea level elevation established by the FAA and Lessor as a height limitation on such structures or
objects. Lessor reserves the right to enter upon the Leased Premises and to remove the offending
stricture or object and cut the offending tree at Lessee's expense
7 08 Aerial Au rop aches: Lessor reserves the right to take any action it considers necessary
to protect the aerial approaches of the Airport against obstniction together with the right to prevent
Lessee from erecting or permitting to be erected any building or other structure on or adjacent to the
Airport which, in the opinion of the Lessor, would limit the usefulness of the Airport or constitute
a hazard to aircraft.
7.09 Right of OverfliT,ht: There is hereby reserved to the Lessor, for the use and benefit of
the public, a right of Hight for the passage of aircraft above the surface of the Leased Premises,
together with the right to cause in said airspace such noise as may be inherent in the operation of
aircraft, now known or hereafter used for navigation of or flight in the air, using said auspace for
landing aC, taking off from or operating on the Airport.
ARTICLE 8. INSURANCE
8.01 Lessee's Minimum Insurance Amounts- Lessee shall obtain and maintain continuously
in effect at all times during the Lease Term, at Lessee's sole expense, at least the following minimum
insurance with a carrier or carriers licensed to do business in the State of Texas and satisfactory to
the Lessor
A. Commercial General Liability Insurance against claims for bodily injury, death, or property
damage occurring on, in or about the Leased Premises, or any other portion of the Airport,
in at least the amount of $1,000,000 00 per individual, $3,OOQ000 00 per occurrence and
$1,000,000.00 with respect to property damage. In the event that the Texas Torts Claims
Act, as amended (Tex. Civ Prac R Rem. Code~~' 101 001, et seq.) or its successor statute,
is amended to increase the amount of liability of municipalities for acts described in said Act
above the levels set forth in this Section 8 O1.A, Lessee agrees to increase the amount of
insurance coverage required by this Section S O1.A. to an amount sufficient to provide
coverage to the level of potential liability per occurrence under said Act; and
B Automobile Liability Coverage on all motor vehicles owned and/or operated by Lessee or its
employees on the Leased Premises or other Airport property in amounts of not less that
COMMERCIAL HANGAR LEASE AGREEMENT AiVIONG THE CITY
OE KERRVILLE. KERR COUNTY AND NIOONEY AIRCRAFT -PAGE ll
$1,000,000 combined single limit or equivalent, provided, however, separate automobile
coverage shall not be required if such coverage is provided tinder Lessee's comprehensive
general liability policy.
8 02 Lessee's Covera~~e Primary' All insurance herein required shall apply as primary and not
in excess of or contributing with other insurance which the Lessee may carry. Insurance provided
pursuant to Section 8 Ol shall name the Lessor as an additional insured or loss payee as the case may
be The comprehensive general liability policy as provided in paragraph 8 OI A. shall provide
contractual liability coverage sufficiently broad so as to include the liability assumed by Lessee in the
indemnity and hold harmless provisions included in Article ~ of this Agreement. The Lessee's
insurance policies as required by this Agreement shall apply separately to the Lessor as if separate
policies had been issued to Lessee and Lessor
8.0 ~ Contents of General Liabilit Policy Lessee's Comprehensive General Liability poluy
shall protect the Lessor and i.essee against any and all liability to any person or persons whose
property damage or personal injury arises out of or is in connection with the occupation, use, or
condition of the Leased Premises or resulting from any injury or damage occurring on or about the
roads, driveways or other public areas of the Leased Premises used by Lessee, its trustees, officers,
employees, students, invitees, and contractors at the Airport, whether or not such dama~*e or injury
is the result of ne~~ligence of the Lessee or its officers, employees, representatives, invitees, licensees,
contractors, agents, guests, or students.
8 04 Cancellation, Certificates of Insurance' Lessee's insurance as required by this
Agreement shall not be subject to cancellation or material alteration until at least thirty (30) days
written notice has been provided to the Lessor Lessee shall furnish to the Lessor, annually,
Certificates of Insurance showing Lessor as an additional insured and evidencing that all of the herein
stated requirements have been met.
S 05 Lessor's Ri<,ht to Purchase insurance In the event such insurance as required by
Section 8.01, above, shall lapse, the Lessor reserves the right to obtain such insurance at Lessee's
expense Upon demand from Lessor, Lessee shall reimburse Lessor for the full amount of the
premium paid an Lessee's behalf.
ARTICLE 9. INDEMNITY
LESSEE AGREES TO INDEMNIFY, DEFENll, AND HOLD HARMLESS THE
CITY, COUNTY, AND THEIR RESPECTIVE OFFICERS, EbIPLOYEES AND 4C'ENTS
from and against any and all loss, damage, liability, claims, demands, costs, charges, expenses and
causes of action including all costs of defense thereof (and including reasonable attorney fees) of
whatsoever character which the Lessor may incur, sustain, or be subjected to on account of loss,
damage to property and loss thereof and for bodily injury to or death of any persons (includim~ but
not limited to the property, employees, customers, contractors, agents, invitees and licensees of each
party hereto) ARISING OUT OF THE CONDUCT OR OPERA"C10NS, NEGLIGENT OR
COMMERCIAL HANGAR LEASE AGREEMENT AMONG THE CITY
OF 1<ERRVILLE. KERR COUNTY AND bI00NF,1' AIRCRAFT -PAGE t~
OTHERWISE. OF L[?SSEG. 1TS DIRECTORS. OFFICERS. E1~IPLOYFFS SLi13LCS5(' ['S.
CONTRACTORS SUBCONTRACTORS OR AGENTS on the Leased Premises. The Lessor
will give Lessee prompt notice of any claim made or suit instituted which in any way affects or might
affect the Lessor Similarly, Lessee will accord the Lessor the same notice and rights.
ARTICLE 10 UTILITIES
Lessee shall be solely responsible for the payment of all electric, telephone, water, refuse,
natural gas and other public utility services used on the Leased Premises.
ARTICLE 11 SIGNS
I 1 O1 Consent Required: Except with the prior written consent of the Director of Public
Services, which shall not be unreasonably withheld, Lessee shall not erect, maintain or display any
signs or any advertising at, or nn, the exterior part of structures on the Leased Premises, or inside any
buildings located on the Leased Premises so as to be visible through the window or exterior doors
thereof.
11 02 Removal on Termination. Upon the termination of this Agreement, Lessee shall
remove, obliterate or paint out, as the Lessor may direct, any and all signs and advertisin, on the
Leased Premises or elsewhere at the Airport, and in connection therewith shall restore the Leased
Premises to the same condition as prior to the placement of any such signs or advertising. In the
event that there is a f2ilure by Lessee to so remove, obliterate or paint out each and every sign or
advertising and so to restore the Lensed Premises, the Lessor may, at its option, perform the
necessary work at the expense of Lessee, and the charge therefor shall be paid by Lessee to the
Lessor on demand In certain circumstances, the Lessor may elect to allow specific signs to remain
as existing at the termination of this Agreement. Such signs shall be identified and agreed upon
mutually, in writing, by Lessee and Lessor.
ARTICLE 12. ASSIGNl~LENT AND SUBLEASNG
At no time sball Lessee sublease any portion of the Leased Premises or assign its interests or
obligations in this Lease Agreement without the written consent of Lessor. Any such assignment or
attempted assignment shall be void.
ARTICLE 13. TAX LIENS
Lessee shall be solely responsible for the collection and payment of all applicable federal,
state, and local taxes, including, but not limited to, sales, use, amusement, or excise tax required to
be collected and paid over by Lessee to the appropriate taxing authority Furthermore, Lessee shall
be responsible for the payment of any applicable ad valorem taxes and any taxes on Lessee's personal
property located on the Leased Premises. Lessee shall at no time penult the foreclosure of any tax
liens to Lessee's leasehold interest in the Leased Premises or the buildings, fixtures, or other
CO~IMi':RCIAL IIANGA2 LEASE AGREEbIENT AMONG THE CITY
OF KERRV[LLE KERR COUNTY AND NIOONEY AIRCRAFT -PAGE 13
improvements located on the Leased Premises. The Lessor shall have the ri~~ht to pay such tales due
after Lessee's refusal to pay such taxes, and upon demand Lessee shall reimburse the Lessor for the
amount of taxes paid plus any penalties, interests, and attorney's fees incurred, subject to Lessee's
right to challenge the validity of such taxes in whole or in part. In the event that Lessee is successful
in any challenge regarding the payment of any tax, the Lessor shall be subrogated to any recovery
obtained by Lessee to the extent of the amount of taxes, interests, penalties, and attorneys tees
previously paid by the Lessor and not already reimbursed by Lessee.
ARTICLE 14. DEFAULT AND RENLEDIES
14 O1 Default by Lessee The following shall be deemed to be events of default b_y Lessee
under this Agreement
A. Lessee shall fail to pay when due any installment of rent or any other payment required
pursuant to this Agreement;
B Lessee shall abandon any substantial portion of the Leased Premises;
C Lesscc or any guarantor of Lessee's obligations hereunder shall file a petitiu^ ur be adjudged
banknipt or insolvent under any applicable federal or state bankruptcy or insolvency law or
admit that it cannot meet its tinancial obligations as they become due, or a receiver or tnistee
shall be appointed for all or substantially all of the assets of Lessee or any warantor of
Lessee's obligations hereunder;
D Lessee or any guarantor of Lessee's obligations hereunder shall make a transfer in fraud of
creditors or shall make an assignment for the benefit of creditors;
E. Lessee shall do or permit to be done any act which results in a lien being filed against the
Leased Premises;
F The liquidation, termination, dissolu[iun of Lessee or any guarantor of Lessee's obligations
hereunder or
G Lessee shall be in noncompliance with any other term, provision or covenant of this
Agreement, other than those specified in subparts A. through F. above.
14.02 Termination Upon Lessee's Default: Except for an event of default resulting from the
filing of a petition in bankruptcy, if an event of default by Lessee shall continue for ten (10) days after
service of notice of such event of default, Lessor may give notice of its election to terminate this
Agreement, and thirty (30) days after service of such notice of election to terminate, this Agreement
shall cease and terminate as ifthe day of Lessor's election were the day originally fixed for termination
of this Agreement Such election to terminate by Lessor shall not be construed as a waiver of any
claim it may have against the Lessee consistent with such termination. If, however, the event of
COMMERCIAL HANGAR LEASE AGREE~[ENT AMOYG THE CPCY
OF I~ERRVILLE KERR COONTY AYD NIOONEY AIRCRAFT -PAGE ld
default is of such nature that it cannot reasonably be remedied within ten (10) days after receipt of
notice, and if the Lessee shall have commenced curing such event of default within ten (10) days after
receipt of such notice, and shall continuously and diligently proceed in good faith to cure such event
of default, then the period for curing the event of default shall be extended for such length of time as
is reasonably necessary to cure the event of default. Furthermore, if the event of default is the result
of Lessee filing a petition in bankruptcy, then termination shall not occur unless the trustee in
bankruptcy has failed to ratify this lease within sixty (60) days following the date of filing of the
petition in bankruptcy.
14 03. Abandonment of Business by Lessee. Lessee further agrees that the abandonment for
a period of thirty (30) days by Lessee of the conduct of its business activities at the Airport shall
terminate Lessee's rights under this Agreement. By so terminating this Agreement, Lessor does not
waive any other claim or rights against Lessee. For the purposes of this paragraph, the term
"abandonment" shall mean the failure of Lessee to be open for business on the Leased Premises
except in the case of war, strike, catastrophe or causes beyond Lessee's control.
14 04 No Remedy Exclusive' No remedy herein conferred upon or reserved to the Lessor
or Lessee is intended to be exclusive of any other available remedy or remedies, but each and every
such remedy shall be cumulative and shall be in addition to every other remedy given under this
Agreement or hereafter existing under law or in equity No delay or omission to exercise any right
or power accniing upon any default shall impair any such right or power or shall be construed to be
a waiver thereof, but any such right and power maybe exercised from time to time and as often as
may be deemed expedient In order to entitle the Lessor and Lessee to exercise any remedy reserved
to it in this section, it shall not be necessary to give any notice, other than such notice as may be
herein expressly required.
14.05 No Waiver of Breach: Lessor's failw e ur delay in declaring the existence of an event
of default by Lessee shall not be construed as a waiver thereof, nor shall it be construed so as to
waive or to lessen the ri~,ht of the Lessor to insist upon the performance by Lessee of any term,
covenant or condition hereof, or to exercise any rights given it on account of any such event of
default. A waiver of any particular event oC default shall not be deemed to be a waiver of the same,
similar of any other subsequent event of default.
l4 06 Expeditious Action. Notwithstanding any provision as to notice in this Agreement
herein contained, if in Lessor's reasonable judgment the continuance of any event of default by Lessee
for the full period of the notice to cure the event of default will jeopardize the operation of the
Airport or the rights of the Lessor or the other Airport tenants, Lessor mav, without notice, elect to
perform those acts in respect to which Lessee is in default. Lessee shall reimburse Lessor for an_y
reasonable and necessary costs incurred by the Lessor pursuant to this Section 14.06
14.07 Default in Rent Payment: Notwithstanding anything to the contrary above, if there
should be any default in the payment by Lessee of any rates, fees or charges due to Lessor as
provided herein, the Lessor may give Lessee a ten (10) day written notice to pay all sums then due
COMMERCIAL HANGAR LEASE AGREEMENT AMONG THE CITY
OF KERRVILLE, KERR COUNTY AND bIOONEY AIRCRAFT -PAGE 1,
... --
or cease operations, and ifsuch payment is not made within such ten (10) day period or such Ion per
time as Lessor may set forth, Lessee's rights under the Agreement shall terminate. By so tenninaun<~
this Agreement, the Lessor does not waive any other claim or rights against Lessee. However, ifsuch
monetary default consists only of underpayment of a disputed and unliquidated sum, under $ ],000 00,
the termination of this Agreement may be forestalled by tender of the liquidated sum and deposit of
the amount in controversy in escrow.
ARTICLE 15. TERMINATION BY LESSEE
Except for the payment by Lessee to Lessor of rents or other amounts past due or accrued
but not yet due, Lessee. shall have the right to terminate this Agreement in its entirety, and all rights
and obligations ensuing therefrom immediately upon the occurrence of the following:
A. The issuance of any order, ntle or regulation of the Federal Aviation Administration, or its
successor Federal Agency, or other competent government authority, Federal or State, or the
issuance and execution of any judicial process by any court of competent jurisdiction,
materially restricting for a period of at least sixty (60) days, the use of the Airport for
aeronautical purposes; provided that none of the foregoing is due to any fault of Lessee, or
B The material restriction of the Lessor's operation of the Airport by action of the Federal
Government, or any department or agency thereof, tinder its wartime or emergency powers,
and the continuance thereof for a period of not less than sixty (60) days, provided however,
that without prejudice to the ri~,hts of Lessee to terminatc as above provided, [he Lessor and
Lessee may mutually agree to adjust fees and charges; or
C Material restriction of the operation of the Airport arising from Lessor's failure to maintain
and keep in repair the landing area of the Airport.
Tf Lessee terminates this Lease for any of the reasons set forth in this Article 15, Lessor shall
promptly repay Lessee any rent previously paid by Lessee attributable to the period following the date
of such terminatiun.
ARTICLF, 16 MISCELLANEOUS PROVISIONS
16 O1 Dama<,es. LESSEE HEREBY RELEASES CITY, COUNTY ANU TFIEIR
RESPECTIVE OFFICERS, EMPLOYEES, AGENTS AND CONTRACTORS FROM
LIABILITY TO LESSEE FOR ANY DAMAGE TO THE PERSONAL PROPERTY OT
LESSEE including its aircraft, caused by the act of negligence of any of those hereby released or any
other user of the Airport, the bursting, leaking or Winning of any cistern, water closet, waste pipe,
tank, water, gas, steam or sewer pipe, or oil and/or gas pipelines in, above, upon or about the Leased
Premises, the Airport, or any part thereof, any heating„ gas or electrical device, or vehicle, or any
flooding or other weather related casualty.
COMMERCIAL HANGAR LEASE AGREEMENT AbIONG THE CITY
OE KERRV[LLE 6ERR COUNTY AND MOONEY AIRCR4ET -PAGE ]f
I6 02 (quiet Gnj_oyment Upon the performance of the covenants and agreements on the part
of the Lessee to be pcrlonned hereunder, the Lessee shall peaceably have and enjoy the Leased
Premises, appurtenances, facilities, licenses and privileges granted in this Agreement.
16 03 Force N[ajeure. Neither the Lessor nor Lessee shall be deemed in violation of this
Agreement iF it is prevented from performing any of its obligations hereunder except the obligation
to pay rent by reason of strikes, boycotts, labor disputes, embargoes, shortages of materials, act of
God, acts of the public enemy, act of superior governmental authority, weather conditions, floods,
riots, rebellions, acts of sabuta~;e or any other circumstances for which it is not responsible or which
are not in its control.
16 04 No Partnership, A~~ency, Joint Venture. It is mutually understood and agreed that
nothing in this Agreement is intended or shall be construed as in any way creating or establishing any
partnership, joint venture, a~,ency, or any other relationship between the Lessor and Lessee other than
landlord and tenant, respectively.
16.05 Inspection by Lesson Lessor may enter upon the Leased Premises at any reasonable
time for any purpose necessary, incidental to or connected with the performance of Lessor's
obligations hereunder, or in the exercise of its governmental functions, for fire protection or security
purposes, or for inspecting or maintaining the Leased Premises, or doing any and all things Lessor
is obligated to do, or which may be deemed by Lessor necessary ar desirable for the proper conduct
and operation of the Airport or the protection of Lessor's interests.
I6 O6 On-Site Representatives. Lessee shall select and appoint a representative or
representatives for its operations at the Airport. The representatives shall be qualified and
experienced, and vested with the full power and authority to act in the name of the Lessee with
respect to the method, manner and conduct of the operation of Lessee to be performed under this
Agreement Lessor's on-site representative shall be the Lessor's Director of Public Works or such
other person as may be appointed by the City Manager
16 07 Conformance with Rules and Re~ulatio~s. The use of the Airport by Lessee shall be
subject to any and all Hiles, regulations and ordinances which are now in force or which may be
hereafter adopted by the Lessor with respect to the operation and use of the Airport, but no such
ndes, regulations, or ordinances shall increase the Base Rent payable by Lessee under this Lease or
otherwise materially and adversely affect Lessee's tenure of the Leased Premises under this Lease.
Furthermore, this Agreement and Lessee's use of the Airport shall be subject to any and all applicable
laws, ordinances, resolutions, stahites, rules, regulations or orders of any Federal, State or local
governmental authority lawftdly exercising jurisdiction over the Airport or the activities and business
operations of Lessee, including any limitations, restrictions or prohibitions affecting the aviation
activities or operations of Lessee.
16 08 Licenses and Permits: Lessee hereby agrees that it shall, at its own expense and cost,
procure and obtain all lawfully required licenses and permits, certificates and other authorizations
CObINiERCIAL HANGAR LEASE AGREEMENT Ab[ONG THE CITY
OF KERRVILLE KERB COUNTY AND MOONEt' AIRCRr1F1' -PAGE 17
required bV any governmental authority, in connection with or covering the operations or activities
permitted to be performed by it under the provisions of this Agreement.
16.09 Notices: Notices provided for in this Agreement shall be either hand delivered or sent
by certified mail, return receipt requested, postage prepaid, and properly addressed as follows:
If to i,essor: City Manager
300 Junction Highway
Kerrville, Texas 73023
If to Lessee Chief Executive Officer
Mooney Aircraft Corporation, Inc
PO.Box72
Kerrville, Texas 73025
The parties may change the representative or address for delivery of notices from time to Ume by
sending written notices to the other party. All notices shall be in writing and effective only upon
actual receipt.
16.10 Governing=Law and Venue This Agreement and all of the transactions contemplated
herein shall be governed by and construed in accordance with the laws of the State of Texas. Venue
for any cause of action shall be in a court of competent jurisdiction in Kerr County, Texas.
16.11 Severabilitv: If any provision of this Agreement is invalid or unenforceable, this
Agreement shall be considered severable as to such provision, and the remainder of this Agreement
shall remain valid and binding as though such invalid or unenforceable provision were not included
herein.
16.12 Captions. Section headin~~s are inserted herein only as a matter of convenience and
for reference, and in no way detines, limits or describes the scope or intent to any provision herein.
16. l3 Use of Lamua~,e: Words of any gender used in this Agreement shall be held and
construed to include any other gender, and words in the singular shall be held to include the plural,
unless the context otherwise requires.
16.14 Counterparts: This Agreement may be executed in multiple counterparts, each of
which shall be deemed as original, and all of which constitute but one and the same instniment.
16.15 Development of the Airport: Future development, changes, alterations, modifications
or improvement to the Airport shall be at the sole discretion of the Lessor, subject only to such
noti£cation to Lessee that the Federal Aviation Administration may dictate. The Lessor will strive
not to hinder the Lessee's operations in carrying out the provisions of this paragraph.
COMMERCIAL IIANGAR LEASE AGREEMENT AMONG THE C[TY
OF IiERRVILLE, KERR COUNTY AND MOONEY AIRCRAFT- PAGE 13
I ~ 16 Subordination to State or Federal A~>recments This Agreement shall be subordinate
to the provisions and requirements of any existing or future agreement between the Lessor and the
United States or the Lessor and the State of Texas, relative to the development, operation or
maintenance of the Airport.
(6 17 No Exclusivity on Aeronautical Services: Nothing herein contained shall be construed
to grant or authorize the granting of the exclusive right to provide aeronautical services to the public
as prohibited by Section 303(x) of the Federal Aviation Act of 1958, as amended.
16 18 Discrimination Prohibited. The Lessee, for itself, its trustees, oflicers, legal
representatives, successors-in-interest and assigns, as a part of the consideration hereof, agrees (I)
that no person on the grounds of race, color, sex, national origin, veteran status or disability shall be
excluded from participation in, denied the benefits of or be otherwise subjected to discrimination in
the use of the Leased Premises; (2) that in the construction of any improvements on, over or wider
the Leased Premises and the firrnishing of services thereon, no person on the grounds of race, sex,
color, national origin, or disability shall be excluded from participation in, denied the benefits of or
otherwise be subjected to discrimination; (3) that the Lessee shall use the Leased Premises and the
Airport in compliance with all other requirements imposed by, or pursuant to, Title 49, Code of
Federal Regulations, Department of Transportation, Subtitle A, office of the Secretary, Part 31,
Nondiscrimination in Federally-Assisted Programs of the Department ofTransportation-Effectuation
of Title VI of the Civil Rights Act of 1964, and as said regulations may be amended. In the event
of breach of any of the above nondiscrimination covenants, the Lessor shall have the right to
terminate this Agreement and to re-enter and repossess the Lcascd Premises and the improvements
thereon, and hold the same as if said Agreement were terntinated by its own term pursuant to Section
2 Ol, above
16 19 Affirmative Action Program: Lessee assures that it will undertake an affirmative action
program as required by 14 CFR Part 152, Subpart E, to ensure that no person shall on the grounds
of race, creed, color, national origin, sex or disability be excluded from participating in any
employment activities covered in 14 CFR Part 153, Subpart E. Lessee assures that no person shall
be excluded on these grounds from participating in or receiving the services or benefits of any
program or activity covered by this Agreement.
16.20 Entire Agreement: This Agreement embodies the entire agreement between the Lessor
and Lessee, and supersedes all prior a~,reements and understandings, whether written or oral, and all
contemporaneous oral agreements and understandings relating to the subject matter hereof. This
Agreement shall not be changed, modified, discharged or extended, except by written instrument duly
executed by Lessor and Lessee. The parties agree that no representations or warranties shat] be
binding upon either party unless expressed in writing in the aforesaid Agreement.
CObIMERCIAL HANGAR LEASE AGREEbIENT AbIONG'FHE CITY
OF KERRVILLE. RERR COUNTY AND IVIOONEY ATRCRAFT -PAGE 1')
[N WITNESS WHEREOF, the parties hereto have caused this A,reeinent to be
legally executed in duplicate this Zb day of ~..
1997 ~
CITY OF KERRVILLE, TEXAS
By
MOONEY AIRCRAFT CORPORATION
AT'„_„
Sheila L. Brand, City Clerk
COUNTY OP KERR, TEXAS
B
A
Pau Dopp, Chi e tive Officer
Patricia Dye, County Clerk j~ ~~~
APPROVED AS TO FORM. ~ APPROVED AS TO FORM:
~.~ ~.
Kevin Laughlin, Cit Attorney i Pollard, Attorney for Kerr County, Texas
'1Aor+h.~ w .
CO~tb[ERCIAL HANGAR LEASE AGREEMENT AMONG THF, CITY
OF ICERRV}LLE, ICERR COUNTY AND MOONEY AIRC12:1FT -PAGE 211