ORDER N0. E610'
RF'PROVE GROUND LERSE BETWEEN CITY/COUNTY
AND STEGHEN T. DRRNE
On this the Bth day of November 1959, ~_ipon motion made by
Commissioner Griffin, seconded by Commissioner- Williams, the
Court unanimously authorized by a vote of 3-0-0, the County
Judge to sign the proposed gr^ound lease between the City/
County and Stephen T. Dr^ane for- hangar- space at Ker^r^ville
Municipal Airport.
COMMISSIONERS' COURT AGENDA REQUEST
PLEASE FURNISH ONE ORIGINAL AND NINE COPIES OF THIS REQUEST AND DOCUMENTS TO BE
REVIEWED BY THE COURT.
MADE BY: Fred Henneke OFFICE: County Judge
MEETING DATE: November 8, 1999 TIME PREFERRED:
SUBJECT: (PLEASE BE SPECIFIC)
Consider and discuss approving proposed Ground Lease
Stephen T. Drane and authorize the County Judge to sign same.
EXECUTIVE SESSION REQUESTED: (PLEASE STATE REASON)
NAME OF PERSON ADDRESSING THE COURT:
ESTIMATED LENGTH OF PRESENTATION:
IF PERSONNEL MATTER -NAME OF EMPLOYEE:
between City/County and
County Judge
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 RECEIVED BY:
THIS REQUEST RECEIVED ON:

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 you request being addressed at the earliest opportunity. See Agenda Request Rules
Adopted by Commissioners' Court.
5:00 P.M. previous Tuesday.

we arv of
KERRVILLE, TEXAS
October 29, 1999
The Honorable Judge Fred Henneke
Ken County Judge
Ken County Courthouse
700 Main Street
Kerrville, Texas 78028
RE: Proposed Ground Lease between City/County and Stephen T. Drane
Dear Judge Henneke:
I have attached the proposed Non-Commercial Hangar Ground Lease Agreement between the
City/County and Mr. Drane that was signed at the October 26, 1999 Kerrville City Council meeting,
and am forwarding it to the County for consideration by the Commissioner's Court.
Thank you for your time and consideration,
llle~,~
Megan Caffall
Airport Manager
~~
800 JUNCTION HIGHWAY •KERRVILLE, TEXAS 79028-5069 • 830/257-8000
NON-COMMERCIAL HANGAR GROUND LEASE AGREEMENT AMONG THE CITY
KERRVILLE, TEXAS, THE COUNTY OF KERR, TEXAS AND STEPHEN T. DRAKE
THIS NON-COMMERCIAL HANGAR GROUND LEASE AGREEMENT, made this
day of .~ , 1999, by and among the City of Kemille, Texas, a home rule municipal
corporation, hereinafter called "City", and the County of Kerr, Texas, a political subdivision of the
State of Texas, hereinafter called "County" (City and County sometimes collectively being referred
to as "Lessor"), and Stephen T. Drane, hereinafter referred to as "Lessee",
RECITALS
WHEREAS, the Lessor owns and operates the Kerrville-Kerr County Airport, located in the
City of Kemille, Texas, hereinafter referred to as "Airport", and;
WHEREAS, Lessee desires to lease certain Lessor-owned land at the Airport to erect an
enclosed hangaz for aircraft storage;
NOW, THEREFORE, for and in consideration of the covenants and conditions herein stated,
Lessor and Lessee agree as follows:
ARTICLE 1. GRANT OF LFASF
1.01 Leased Premises: Lessor agrees to lease to Lessee certain property owned by Lessor
located at the Airport and being more particularly described as a 0.68 acre of Tract 5 of the Airport
Leasing Plan, recorded at Volume 6, Page 331, Plat Records of Kerr County, Texas, and described
on Exhibit "A" attached hereto and made a part hereof by this reference, hereinafter being referred
to collectively as the "Leased Premises."
1.02 Easements: This Lease 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
cleazly visible as of the date of this Agreement, or which aze shown on Exhibit "A" and the Airport
Leasing Plan, recorded at Volume 6, Page 331, Plat Records of Kerr County.
ARTICLE 2. TERM OF AGREEMENT
2.01 Lease Term: The term of this Lease Agreement shall commence at 12:01 a.m. on
December 1, 1999, and terminate at midnight on November 30, 2019 , ("the Lease Term") unless
terminated eazlier pursuant to the provisions of this Lease Agreement.
ARTICLE 3. RENT
3.01 Amount of Base Rent: Lessee agrees to pay to Lessor rent for the Leased Premises in
the amount of $140.00 per month ("the Base Rent") commencing on December 1, 1999. The amount
of rent due from time to time pursuant to this Lease Agreement shall be subject to adjustment as set
forth in Section 3.02, below.
3.02 Adjustment of Rent During Lease Term: During the Lease Term. the rent to be paid
by Lessee shall be periodically increased or decreased in accordance with changes in the Consumer
Price Index for Urban Wage Earners and Clerical Workers (CPI-W)(Dallas-Fort Worth) (the
"Consumer Price Index") as promulgated by the Bureau of Labor Statistics of the United States
Department of Labor, which Consumer Price Index for September, 1999, is 159.6 (the "Base Index")
using the yeaz 1984 as a base of 100, such increase to be determined as follows:
A. For the period from December 1, 2004, through November 30, 2009, the rent to be paid shall
beaz the same ratio to the Consumer Price Index for September, 2004, as $140.00 bears to
the Base Index.
B. For the period from December 1, 2009, through November 30, 2014, the rent to be paid shall
bear the same ratio to the Consumer Price Index for September, 2009, as $140.00 bears to
the Base Index.
C. For the period from December 1, 2014, through November 30, 2019, the rent to be paid shall
beaz the same ratio to the Consumer Price Index for September, 2014, as $140.00 bears to
the Base Index.
In no event, however, shall the rent due be less than $140.00 per month. In the event the
Consumer Price Index ceases to incorporate a significant number of items, 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 such Consumer Price Index (or a successor or
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 Delivery of Rent: All payments required of Lessee by this Agreement shall be
delivered by mail, or in person, to the Office of the Director of Public Services, City of Kemille,
Texas, 800 Junction Highway, Kerrville, Texas 78028, or to such other location as specified in
writing by the Lessor from time to time, no later than the first day of each calendaz 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 changes aze not received by the Lessor on or before the tenth day following the due date,
Lessee shall pay a late rental change of Two Percent (2.0%) of the rent amount due for that month.
All rent and other payments which aze past due more than thirty (30) days shall accrue simple
interest at the rate of eighteen percent (18.0%) annually or (b) the maximum percentage rate allowed
by law, whichever is less. Notwithstanding 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
NON-COMMERCIAL HAN AR GROUND t FACF
AGREEMENT WITH STEPHEN T DRANE -PAGE 2
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 shall 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 lawful 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.
3.05 ADOlication of Amounts Received: Payments received shall be applied in the following
order: (1) interest accrued for late payments, (2) late rental charges, (3) past due fuel flowage fees,
if any (4) past due rent, beginning with the oldest amount due, (5) other past due amounts, (6) rent
currently due, (7) other amounts currently due.
3.06 Other Chazees: Nothing herein shall be deemed to relieve Lessee and its tenants,
sublessees, patrons, invitees and others from Airport use chazges, including fuel flowage fees paid
on fuel purchased by Lessee, as aze levied generally by the Lessor directly upon the operation of
aircraft, or from automobile pazking permit fees for pazking azeas that aze not included within the
Leased Premises, or from 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 non-commercial aeronautical activities consisting of any or all of the following
operations and no others:
A. Construction of an aircraft hangaz;
B. Storage of aircraft owned or leased by Lessee, or guests;
C. Storage of such equipment and appazatus as may be incidental and/or necessary to Lessee's
operations, including motor vehicles operated and/or owned by Lessee;
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 rules and
regulations and applicable regulations for the use of the Airport 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;
NON-COMMERCIAL HANGAR GROUND LEASE
AGREEMENT W ITH STEPHEN T. DRANE -PAGE 3
C. Lessee shall not cause or permit the burial or storage above 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 rules, as may be
adopted or amended from time to time;
D. Lessee shall not cause or permit any use or activity on the Leased Premises which would
create a hazardous condition for aircraft operating at the Airport;
E. Lessee shall not allow the Leased Premises to be used for pazking of motor vehicles,
motorcycles, or motor driven equipment by anyone other than customers, employees, or
contractors of Lessee except as may be authorized by the Director of Public Services, with
all such pazking being limited to azeas designated by Lessor for such pazking. Lessee shall
not be in default for the improper pazking 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.
G. Lessee shall not permit aircraft to access the Leased Premised from outside the Airport
property such that such access would constitute a "through the fence" operation prohibited
by contracts between Lessor and the State of Texas or the United States of America.
4.03 Compliance with Minimum Standards: All 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, Regulations,
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
CnNSTRUCTION OF IMPROVEMENTS
5.01 Application for Building Permit: Upon execution hereof, Lessee shall make application
for a building pemtit ("Permit") with the appropriate governmental agency on or before 90 days from
date hereof for the construction of the facilities necessary to carry out the purposes described in
Section 4.01 above, and shall pursue issuance of such Permit with reasonable diligence. Lessor
agrees to cooperate with Lessee in obtaining sttch Permit.
5.02 Approval of Construction Plans: Not later than 90 days after commencement of the
Lease Term and prior to any construction, alteration, or changes to the Leased Premises or the
NON-COMMERCIAL HANGAR GROUND LEASE
AGREEMENT WITH STEPHEN T DRANE -PACE 4
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 bevinning
any construction 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 construction or alteration of the Airport due to the Lessor being the holder of the Airport
Operating Certificate, the Lessor agrees to promptly and diligently make and prosecute such
applications. Once necessary approvals and permit(s) have been obtained, Lessee Shall, within six
months afrer issuance of approval and permit(s), soley and entirely at Lessee's cost, risk and
expense, commence to construct, build and erect the Improvements in accordance with the final
construction plans and specifications hereinabove mentioned.
5.03 ADDroval of Plans Not Assurance of Design Quality: The approval by the Director of
Public Services or anyone else acting on behalf of Lessor of any plans and specifications applies
only to the conformity of such plans to the general azchitectural 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 azchitectural or engineering work performed. Neither Lessor nor the
Director of Public Services assumes any liability or responsibility for the architectural or engineering
design or for any defect in any building or improvement constructed from the plans or specifications.
Construction of any contemplated improvements shall be in accordance with the plans presented to
and approved by the Director of Public Services. All construction 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.
5.04 Contractor's Insurance: Bonds: At any time construction activities aze 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 fine, 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, Lessee shall require all contractors performing construction 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 construction to be performed on forms which aze in compliance with Chapter 2253
of the Texas Government Code, as amended. The foregoing shall be made a part of any contract
NON-COMMERCIAL HANGAR GROUND LEASE
AGREEMENT WITH STEPHEN T. DRANE -PAGE 5
between Lessee and its contractor or contractors. In the event Lessee does any construction work
itself, it shall comply with the all-risk insurance provisions hereof.
5.05 Compliance With Building Codes and Federal Standazds: All improvements made to
the Leased Premises by Lessee shall comply with all applicable City of Kemille Building Codes
and Federal standazds for construction of airport improvements in effect at the time construction
commences as well as all other applicable federal aviation regulations, if any.
5.06 Encumbrance of Leasehold Estate: Lessee shall at no time encumber or attempt to
encumber its leasehold interest in the Leased Premises by deed of trust, mortgage, security
agreement or other security interest without the prior written consent of the Lessor.
5.07 Ownershi~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 first day of the Lease Term 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 Agreement without compensation to Lessee, it being understood and agreed
by Lessee that the 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.
Notwithstanding the above, Lessee shall have the right at any time during Lessee's occupancy of the
Leased Premises, or within a reasonable time thereafter, to remove any and all furniture, 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 buildings or improvements on the Leased Premises resulting from their removal. Any such
personal property items or trade fixtures which are not removed within sixty (60) days afer the
termination date of this Agreement shall become the property of Lessor as of that date.
5.08 Failure to Construct Improvements: Lessor shall have the right, exercisable at its sole
option, to terminate this Lease Agreement if:
A. Lessee fails to commence construction of the improvements required to conduct Lessee's
operations on the Leased Premises on or before the 180th day after commencement of the
Lease Term; or
B. after construction of the required improvements has commenced, Lessee fails to complete
construction of the improvements on or before the second anniversary of commencement of
construction.
NON-COMMERCIAL HANGAR GROUND LEASE
AGREEMENT WITH STEPHEN T. DRANE -PAGE 6
ARTICLE 6. REPAIRS. MAINTENANCE .AND RESTORATION
6.01 Maintenance by Lessor: Lessor shall, at Lessor's sole expense, keep in good repair,
condition and appearance the taxiways, roadways, and drainage improvements 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.
6.02 Maintenance by Lessee: Lessee shall, at Lessee's sole expense, keep the Leased
Premises and all improvements of any kind, which may be existing at the commencement of the
Lease Term or erected, installed, or made thereon by Lessee after commencement of the Lease Tenn,
not required herein to be maintained by Lessor in good repair. condition and appeazance. 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 hangazs located on the Leased Premises. Lessee shall keep
mowed and in a sightly condition all landscaping and grass azeas 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. If such maintenance is not undertaken by Lessee within
ten (10) days after 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 home by Lessee. Other
items of maintenance for which Lessee shall be solely responsible shall include, but not be limited
to, the following:
A. Supply and replacement of light bulbs in and on all buildings (except lighting removed for
causing obstructions or glare);
B. Replacement of cracked or broken glass in all buildings;
C. Maintenance of all doors and door operating systems:
D. Maintenance of all aprons, ramps, and roadways that aze constructed by Lessee.
Subject to the provisions of Section 5.07, on the last day of the Lease Term, or on any sooner
termination, Lessee shall surrender the Leased Premises to Lessor in good condition and clean and
free of debris, except for fire and casualty damages or ordinary weaz and tear.
6.03 Trash and Waste Removal: Lessee agrees to cause to be removed from the Leased
Premises, at its own expense, all waste, gazbage and rubbish, and agrees not to deposit same on the
Leased Premises except temporarily in waste or gazbage containers provided by Lessee at Lessee's
expense.
NON-COMMERCIAL. HANGAR GROUND LEASF.
AGREEMENT WITH STEPHEN T. DRANE -PACE 7
ARTICLE 7. ACCESS TO AND USE OF AIRPORT
7.01 Access to Airport: Lessor shall maintain all roads on the Airport giving access to the
Leased Premises in good and adequate condition for use by cazs 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 Right to Use AiIIL: Lessee and Lessee's employees, sublessees, and guests shall have
the right 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, rules, regulations, or orders of any govemmental authority,
lawfully exercising jurisdiction over the Airport or the activities and operations of Lessee, including
any limitations, restrictions or prohibitions affecting the aviation activities or operations of Lessee.
7.03 Vehiculaz Opgrations on the Airfield: No vehicles of Lessee, its employees, customers
or invitees will be allowed to operate on, or cross, the runways of the Airport except pursuant to the
Airport Rules and Regulations.
7.04 A~port Certification Rules and Regulations: Lessee shall comply with such rules that
pertain to its operation on the Airport under the Airport Certifications Rules of Federal Aviation
Regulations Part 139, as amended [14 CFR Part 139, as amended], to the extent such regulations are
applicable to the operation of the Airport.
7.05 Airoort Security Rules and Regulations: Lessee, its directors, officers, 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 hereafrer be amended. LESSEE AGREES TO
INDEMNIFY AND HOLD HARMLESS THE LESSOR. ITS OFFICERS AND
EMPLOYEES, from any chazges, 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. ITS DIRECTORS. OFFICERS. EMPLOYEES. OR
CONTRACTORS to comply with such Airport Security Regulations.
7.06 14 C.F.R. Part 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 modification of any present or future building, antenna or structure located on the
Leased Premises.
7.07 Control of Structures: Lessee shall not erect nor permit the erection of any structure or
object, 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
YON-COMMERCIAL HANGAR GROUND LEASE
AGREEMENT WITH STEPHEN T. DRANE • PAGE 8
or objects. Lessor reserves the right to enter upon the Leased Premises and to remove the offending
structure or object and cut the offending tree at Lessee's expense.
7.08 Aerial Approaches: Lessor reserves the right to take any action it considers necessary
to protect the aerial approaches of the Airport against obstruction 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 Rieht of Overflieht: There is hereby reserved to the Lessor, for the use and benefit of
the public, a right of flight 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 airspace for
landing at, 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, $1,000,000.00 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. & 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.Ol.A, Lessee agrees to increase the amount of
insurance coverage required by this Section 8.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
$1,000,000 combined single limit or equivalent, provided, however, separate automobile
coverage shall not be required if such coverage is provided under Lessee's comprehensive
general liability policy.
C. Property and Casualty Insurance on improvements constructed on the property, whether
owned by Lessee or Lessor, insuring against loss or damage to improvements due to fire,
lightning and all other perils included in standard extended coverage policies, and vandalism
and malicious mischief, all in amounts of not less than ninety percent (90%) of replacement
value;
NON-COMMERCIAL HANGAR GROIfND LEASE
AGREEMENT W ITH STEPHEN T. DRANE -PAGE 9
D. If required pursuant to Article 3-V-10(a.)(2) of the Code of Ordinances, Hangazkeeper's
Liability coverage in the minimum amount of $1,000,000.00 per occurrence unless similaz
covernge exists under the required general liability policy.
8.02 Lessee's Coverage 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 8.01 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.O1.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 9 of this Agreement. The
Lessee's insurance policies as required by this Agreement shall apply separately to the Lessor as if
sepazate policies had been issued to Lessee and Lessor.
8.03 Contents of General LiabilityPolicy: Lessee's Comprehensive General Liability policy
shall protect the Lessor and Lessee 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 azeas of the Leased Premises used by Lessee, its trustees, officers,
employees, students, invitees, and contractors at the Airport, whether or not such damage or injury
is the result of negligence 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.
8.05 Lessor's Right 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 on Lessee's behalf.
8.06 Lessor's Right to Casualtv Insurance Proceeds: Lessor shall be paid a portion of any
proceeds from a claim filed against Lessee's property and casualty policy arising from an event that
results in the substantial damage or destruction of Lessee's improvements if Lessee's does not
commence rebuilding within 180 days after the event which caused the damage. The portion of the
insurance proceeds to which Lessor shall entitled pursuant to this section shall be equal to the ratio
of the number of days remaining in the Lease Tetrn as of the date the improvements were damaged.
NON-COMMERCIAL HANGAR GROUND LEASE
AGREEMENT WITH STEPHEN T. DRANE -PAGE 10
ARTICLE 9. INDEMNITY
r FSSEE AGREES TO INDEMNIFY DEFEND AND HOLD HARMLESS THE
~rTV COUNTY AND THEIR RESPECTIVE OFFICERS EMPLOYEES AND AGENTS
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 chazacter 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 (including but
not limited to the property, employees, customers, contractors, agents, invitees and licensees of each
party hereto) ARISING OUT OF THE CONDUCT OR OPERATIONS NEGLIGENT OR
OTHERWISE. OF LESSEE. ITS DIRECTORS. OFFICERS. EMPLOYEES. SUBLESSEES.
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. Similazly, 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
11.01 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 on, 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 advertising 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 failure by Lessee to so remove, obliterate or paint out each and every sign or
advertising and so to restore the Leased 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.
NON-f.OMMF.RCIAI. HANGAR GROUND LEACE.
AGREEMENT W[TH STEPHEN T. DRAKE -PAGE I1
ARTICLE 13. ASSIGNMENT AND SUBLEASING
12.01 Sublease and Assignment Prohibited: At no time shalt Lessee grant any sublease or
assign its interests or obligations in this Lease Agreement without the written consent of the Lessor.
Any such sublease or assignment or attempted sublease or assignment shall be void.
12.02 Assignment by Lessor: The Lessor may transfer and assign this Agreement to any
successor in Interest of Lessor to whom the Airport may be sold or assigned; provided that the
successor in interest shall execute and deliver to Lessor, with copy to Lessee, and instrument
assuming the lawful obligations of Lessor under this Agreement.
12.03 Transfer to Heirs of Estate: Notwithstanding the provisions of Section L.O1, above,
upon Lessee's death, this Agreement may be assigned to Lessee's heir(s) pursuant the applicable
provisions of state law regazding the disposition of the assets and settlement of debts and obligations
of Lessee's estate without the consent of Lessor.
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 permit the foreclosure of
any tax liens to Lessee's leasehold interest in the Leased Premises or the buildings, fixtures, or other
improvements located on the Leased Premises. The Lessor shall have the right to pay such taxes 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 fees
previously paid by the Lessor and not already reimbursed by Lessee.
ARTICLE 14. DEFAULT AND RF,MEDIES
14.01 Default by Lessee: The following shall be deemed to be events of default by 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;
NON-COMMERCIAL HANGAR GROUND LEASE
AGREEMENT W ITH STEPHEN T. DRANE -PAGE 12
C. Lessee or any guarantor of Lessee's obligations hereunder shall the a petition or be adjudged
bankrupt or insolvent under any applicable federal or state bankruptcy or insolvency law or
admit that it cannot meet its financial obligations as they become due, or a receiver or trustee
shall be appointed for all or substantially all of the assets of Lessee or any guarantor 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, dissolution 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 if the 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 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 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 accruing 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 may be 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.
NON-COMMERCIAL HANGAR GROUND LEASE
AGREEMENT WITH STEPHEN T. DRANE -PAGE 13
14.04 No Waiver of Breach: Lessor's failure or 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 right 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 particulaz event of default shall not be deemed to be a waiver of the same,
similaz of any other subsequent event of default.
14.05 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 jeopazdize the operation of
the Airport or the rights of the Lessor or the other Airport tenants, Lessor may, without notice, elect
to perform those acts in respect to which Lessee is in default. Lessee shall reimburse Lessor for any
reasonable and necessary costs incurred by the Lessor pursuant to this Section 14.05.
14.06 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
or cease operations, and if such payment is not made wnthin such ten (10) day period or such longer
time as Lessor may set forth, Lessee's rights under the Agreement shall terminate. By so terminating
this Agreement, the Lessor does not waive any other claim or rights against Lessee. However, if
such monetary default consists. only of underpayment of a disputed and unliquidated sum, under
$1,000.00, 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 T .R.
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 irnmediately upon the occurrence of the following:
A. The issuance of any order, rule 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, under 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 rights of Lessee to terminate as above provided, the Lessor and
Lessee may mutually agree to adjust fees and chazges; or
'YON-COMMERCIAL HAN('.AR GROUND LEASE
AGREEMENT WITH STEPHEN T. DRAKE -PAGE 14
C. Material restriction of the operation of the Airport arising from Lessor's failure to maintain
and keep in repair the landing azea of the Airport.
ARTICLE 16. MISCELLANEOUS PROVISIONS
16.01 Damases: LE44FE HEREBY RELEASES CITY COUNTY AND THEIR
RESPECTIVE OFFICERS EMPLOYEES AGENTS AND CONTRACTORS FROM
LIABILITY TO LESSEE FOR ANY DAMAGE TO THE PERSONAL PROPERTY OF
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 running 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.
16.02 Ouiet EnjQyrrtent: Upon the performance of the covenants and agreements on the part
of the Lessee to be performed hereunder, the Lessee shall peaceably have and enjoy the Leased
Premises, appurtenances, facilities, licenses and privileges granted in this Agreement.
16.03 Force Majeure: 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, embazgoes, shortages of materials, act of
God, acts of the public enemy, act of superior governmental authority, weather conditions, floods,
riots, rebellions, acts of sabotage or any other circumstances for which it is not responsible or which
aze not in its control.
16.04 No Partnership~,gency. 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, agency, or any other relationship between the Lessor and Lessee other
than landlord and tenant, respectively.
16.05 Inspection by Lessor: 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 or desirable for the proper conduct
and operation of the Airport or the protection of Lessor's interests.
16.06 Conformance with Rules and Regulations: The use of the Airport by Lessee shall be
subject to any and all rules, regulations and ordinances which aze 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
rules, regulations, or ordinances shall increase the 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
NON-COMMERCIAL HANGAR GROUND LEASE
AGREEMENT W ITN STEPHEN T. DRAKE -PAGE 15
applicable laws, ordinances, resolutions, statutes, rules, regulations or orders of any Federal. State
or local 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.
16.07 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
required by any governmental authority, in connection with or covering the operations or activities
permitted to be performed by it under the provisions of this Agreement.
16.08 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 Lessor: City Manager
800 Junction Highway
Kerrville, Texas 78028
If to Lessee: Stephen T. Drane
100 Smith Road
Kerrville, Texas 78028
The parties may change the representative or address for delivery of notices from time to time by
sending written notices to the other party. All notices shall be in writing and effective only upon
actual receipt.
16.09 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 competentjurisdiction in Kerr County, Texas.
16.10 Severability: 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.
16.11 t n : Section headings aze inserted herein only as a matter of convenience and
for reference, and in no way defines, limits or describes the scope or intent to any provision herein.
16.12 Use of Laneuaee: 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.
16.13 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 instrument.
NQN-COMMERCIAL HANGAR GROUND LEASE
AGREEMENT WITH STEPHEN T. DRAKE -PAGE t6
16.14 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
notification 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 pazagraph.
16.15 Subordination to State or Federal Agreements: 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.
16.16 No Exclusivity on Aeronautical Services: Nothing herein contained shall be construed
to grant or authorize the granting of the exclusive right to provZde aeronautical services to the public
as prohibited by Section 308(a) of the Federal Aviation Act of 1958, as amended.
16.17 Discrimination Prohibited: The Lessee, for itself, its trustees, officers, legal
representatives, successors-in-interest and assigns, as a part of the consideration hereof, agrees (1)
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 under
the Leased Premises and the famishing 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 21,
Nondiscrimination inFederally-Assisted Programs ofthe 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 Leased Premises and the improvements
thereon, and hold the same as if said Agreement were terminated by its own term pursuant to Section
2.01, above.
16.18 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 152, 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.
16.19 Entire Agreement: This Agreement embodies the entire agreement between the
Lessor and Lessee, and supersedes all prior agreements 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
NON-f.OMMERfIAI. HAN .AR .ROItlYD .FACE.
AGREEMENT WITH STEPHEN T. DRANE -PAGE 17
+. ~ 6
instrument duly executed by Lessor and Lessee. The parties agree that no representations or
warranties shall be binding upon either party unless expressed in writing in the aforesaid Agreement.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
legally executed in duplicate this 2 Co day of ~~~o~_ ,
1999.
CITY OF KERRVILLE, TEXAS
~ ' ~fi~
By: ~Cr1n '
Ben R. T,ow, Mayor
ATTES'T':
LESSEE
By: y?.~1
Ste en T. Drane
~rt~<~~*~~~ ~~
Sheila L. Brand, City Clerk
COUNTY OF KERR, TEXAS
B•
Frederick L. Herne ,County Judge
ATTESTt' "~
~~~' ~
. ~' ~ ~~~
v. 4
ett˘ Pieper, CourR'y Clerk
~ ~
w '~, ~ ~
AI~fI~OVED•A~S'TO FORM:
Ol'MrY.
~~
Kevin B. Laughlin, City Attorney
APPROVED AS TO FORM:
/~
Id Motl y, County Attomey
NON-COMMERCIAL HANGAR GROUND LEASE
AGREEMENT WITH STEPHEN T. DRANE -PAGE 18
.. ~ ..
EXHIBIT "A"
METES AND BOUNDS DESCRIPTION OF THE LEASED PREMISES IN THAT CERTAIN
NON-COMMERCIAL HANGAR GROUND LEASE AGREEMENT AMONG THE CITY
KERRVILLE, TEXAS, THE COUNTY OF KERB, TEXAS AND STEPHEN T. DRAKE
Being a 0.68 acre tract of land out of Original Survey No. 1921, W. M. Pnutt, Abstract No. 1281 in
Kerr, County Texas, said 0.68 acres also being a portion of that certain 14.24 acre Lot 5 of the City
Df Kerrville Airport Leasing plan, of record in Volume 6 on Page 331 of the Plat Records of Ken
County ,Texas and being more particulazly described by metes and bounds as follows to wit:
BEGINNING at a point in a line which is 300' Pazallel and normal to the NE-SE runway, said point
also being N. 33 ° 02' E. a distance of 1 ] 5.80 feet from the Northernmost corner of said Lot 5 of said
leasing plan and the most westerly corner of this tract;
THENCE S. 57 ° 00' E. a distance of 200.00 feet to a point for a corner of this tract;
THENCE N. 33 ° 02' E. a distance of 150.00 feet for a corner of this tract;
THENCE N. 57 ° 00' W. a distance of 200.00 feet to a point in the most Westerly line of said Lot 5,
also being 300' parallel and normal to the NE-SE runway and a corner of this tract;
THENCE with said line S. 33 ° 02' W. a distance of 150.00 feet to the POINT OF BEGINNING
containing 0.68 acres of land more or less.
NON-COMMERCIAL HANGAR GROUND LEASE
AGREEMENT WITH STEPHEN T. DRAKE -PAGE 19