ORDER NO.28756
MOONEY AIRPORT LEASE
Came to be heard this the 9`~' day of August 2004 with a motion made by Commissioner
Letz, Seconded by Commissioner Williams, the Court unanimously approved by a vote
of 4-0-0, the Facility Lease to Mooney Airplane Company.
~~~~~~
COMMISSIONERS' COURT AGENDA REQUEST
PLEASE FURNISH ONE ORIGINNAL AND NINE COPIES OF THIS REQUEST AND DOCUMENTS TO BE
REVIEWED BY TRHE COURT.
MADE BY: David C. Pearce OFFICE: Airport Manama
MEETING DATE: August 9, 2003 TIME PREFERRED: As early as osp Bible
SUBLECT: (Approval of Facility Lease)
Consideration and Approval of a Facility Lease to Mooney Airplane Company
Mooney Airolane Company currently leases approximately 19 acres of land with about 276 000 square foot
facilities from the City/County located at Al Mooney Road Louis Schreiner Field Kerrville Texas 78028
The lease term for that main facility expires in calendar year 2034 Their current business has resulted in
the company seeking additional lease space for short term
The proposed lease is for building number 18 which consists of approximately 17 000 square feet of
warehouse space; located adjacent their existing facilities. The lease is a month-to-month lease for the
facility in its present condition. Due to the condition of the facility the proposed lease rate is $0 79 per
square foot which is below the market rate• $3 14 per square foot The Airport Board recommended
approval on July 7. 2004.
EXECUTIVE SESSION REQUESTED: (PLEASE STATE REASON) None
NAME OF PERSON ADDRESSING THE COURT: David C. Pearce
ESTIMATED LENGTH OF PRESENTATION: 10 Minutes
IF PERSONNEL MATTER -NAME OF EMPLOYEE N/A
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: 5:00 P.M. Tuesday.
THIS REQUEST RECENED 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 the time of Court Meetings. Your cooperation will be
appreciated and contribute towards your request being addressed at the earliest opportunity. See Agenda Rules Adopted
by Commissioners' Court.

COMMERCIAL LEASE AGREEMENT
AMONG
THE CITY OF KERRVILLE, TEXAS, THE COUNTY OF KERR, TEXAS
AND
MOON~EY AIRPLANE COMPANY
THIS LEASE AGREEMENT, made this ~ ~ day of ~ ~ 2004, by and among the Kerrville-Kerr County
Airport Board, governing board of the Kerrville-Kerr Co Airport pursuant to the Texas Municipal and County
Airport Act, Tex. Transportation Code Chapter 22, hereina er called the "Board"; the City of Kerrville, 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 being the record owners of the herein-described real property
(Board, City and County sometimes collectively referred to as "Lessor"), and MOONEY AIRPLANE COMPANY,
INC., successor in interest to Mooney Aircraft Corp., Inc., whose principal offices are located in Kerrville, Texas,
hereinafter referred to as "Lessee".
RECITALS
WHEREAS, the Lessor owns and operates the Kerrville-Kerr County Municipal Airport, located in the City of
Kerrville, Texas, hereinafter referred to as "Airport", and;
WHEREAS, Lessee desires to lease certain Lessor-owned land at the Airport to store equipment and/or
machinery; and
NOW, THEREFORE, for and inconsideration of the covenants and conditions herein stated, Lessor and Lessee
agree as follows:
ARTICLE 1.
GRANT OF LEASE
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 building identified on the attached Exhibit A as "Building No. 18,"
containing approximately 17,080 square feet, hereinafter being referred to as the "Leased Premises." Although this
property was previously occupied by Lessee pursuant to a different lease, the premises leased herein to Lessee on a
month-to-month basis shall not be considered as an exercise of Lessee's right of first refusal under that other lease.
1.02 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.
ARTICLE 2.
TERM OF AGREEMENT
2.01 Lease Term: This Agreement shall commence at 12:01 a.m on June 1, 2004, and terminate at midnight on
June 30, 2004, ("the Lease Term") unless terminated earlier pursuant to the provisions of this Agreement.
2.02 Outional Extension of Lease Term: Lessee shall have the option of automatically renewing the Lease
Term for additional one-month periods by providing to Lessor written or a-mail notice of its intention to renew on or
before 10 days prior to the end of each lease term Lessor shall thereafter have the right, upon receipt of any such notice
of Lessee's intention to renew for this additiona130-day period, to notify Lessee in writing that it will ternnate the lease
at the end of that upcoming 30-day term Upon delivery of such notice by Lessor to Lessee, Lessee's right to renew shall
temunate and Lessee will be required to vacate the premises before the end of the upcoming term.
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 agreement as contemplated by Section 2.02, such
continuation beyond the date of termination, or the collection or acceptance of rent, fees and/or other charges by the
Lessor, shall not be construed 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. During 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. Lessor may terminate the tenancy at will by giving Lessee fifteen (15) calendar days
written notice of its intent to terminate the lease. Lessee shall then vacate the premises on or before fifteen (15) days
after the notice is mailed or delivered. If Lessee holds over past fifteen (15) days after Lessor mails or delivers
notice of its intent to terminate, Lessee shall pay a penalty of $100.00 per day of occupancy after the fifteenth (15~' )
day in addition to the regular rental fee provided for herein.
ARTICLE 3.
RENT
3.01 Amount of Base Rent: Lessee agrees to pay to Lessor rent for the Leased Premises based on $.79 per
square feet per year , or $1,117.37 for the rental period commencing on June 1, 2004. Rent for June, 2004 shall be due
and payable immediately upon execution of this lease. For any renewals, rent shall be due and payable as provided for in
3.02, below, and shall be considered delinquent if it is not paid on or before the 5`~ of each month lease term.
3.02 Delivery of Rent: All payments required of Lessee by this Agreement shall be delivered by mail, or in
person, to the Airport Manager's office, City of Kerrville, 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 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.
3.03 Delinquent Rent Payments: In the event that payments to the Lessor for rent, holdover penalty or other
fees or charges are not received by the Lessor on or before the fifth day following the due date, Lessee shall pay a late
rental charge of Two Percent (2.0%) of the rent or other amount due. 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%) annually or (b) the
maximum percentage rate allowed by law, whichever is less. Notwithstanding anything to the contrary in this Section, if
at the time performance of the provisions set forth in this Section becomes due the interest to be paid in accordance with
this Section 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.
3.04 A~lication 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 rent, beginning with the oldest amount due, (4)
other past due amounts, (5) rent currently due, and (6) other amounts currently due.
3.05 Other Charges: Nothing herein shall be deemed to relieve Lessee and its tenants, sublessees, patrons,
invitees and others from Airport use charges, 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 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 for-
profit commercial aeronautical services or activities consisting of any or all of the following operations and no others,
unless specifically agreed to in writing between Lessor and Lessee:
Equipment and machinery storage
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, county or city laws, orders, 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;
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, county or city laws, orders, ordinances, regulations and
rules, as maybe adopted or amended from time to time;
D. Lessee shall not cause or permit any use or activity on the Leased Premises that would
create a hazardous condition for aircraft operating at 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 may be authorized by the Airport Manager, 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.
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 Comyliance with Minimum Standards: All activities conducted upon the Leased Premises, whether by
Lessee or its officers, employees, contractors, or agents, 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 anon-exclusive basis with respect to
other potential providers of aeronautical services at the Airport.
4.05 Lessor's Access to Premisis: Lessor shall have access at all reasonable times for purposes of showing
property to other potential Lessees.
ARTICLE 5.
(RESERVEDI
ARTICLE 6
REPAIRS, MAINTENANCE AND RESTORATION
6.01 Maintenance by Lessee: Lessee accepts the premises as is, and with the understanding that there are
portions of the building that are in need of extensive repair, and that hazards exist due to the deteriorated condition
of the building that may pose a danger to the health or safety of the building's occupants. Lessee further
acknowledges that it has been a tenant in this building continuously for over twenty (20) years, with a contractual
duty to keep the premises in good repair, and that the conditions now existing in the building are conditions that
existed or came to exist during Lessee's previous tenancy. Lessee agrees that it shall not have the right to require
Lessor to make any repairs or improvements to the building during the lease term, and that 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 Term, not required herein to be maintained by Lessor in at least as good repair, condition and appearance as
such premises were at the inception of this lease term. 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 Lessee does not undertake such maintenance 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 borne by Lessee. On the last day of the Lease Term, or on any sooner
termination, Lessee shall surrender the Leased Premises to Lessor in at least as good condition as it was received
and clean and free of debris, except for fire and casualty damages or ordinary wear and tear.
6.02 Trash and Waste Removal: Lessee agrees to cause to be removed from the Leased Premises, at its own
expense, all 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 the interior of buildings located on the Leased Premises.
ARTICLE 7.
ACCESS TO AND USE OF AIRPORT
7.01 Access to Airport: Lessor shall maintain all City-owned roads on the Airport giving 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 Right to Use Airport: Lessee and Lessee's officers, employees, agents, contractors, invitees, 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 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 officers, employees, agents, contractors,
invitees, and guests will be operated on, or cross, the runways of the Airport except pursuant to the Airport Rules and
Regulations.
7.04 Airport Certification Rules and Re arions: 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 Airport Security Rules and Regulations: Lessee, its officers, employees, agents, contractors, invitees, and
guests 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 THE
4
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, ITS OFFICERS, EMPLOYEES, AGENTS, CONTRACTORS, INVITEES, AND GUESTS 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 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 Right of Overflight: 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 carver 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, $2,000,000.00 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.O1.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
$500,000.00 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;
D. If required pursuant to Article 3-V-10(a.)(2) of the Code of Ordinances of the City of
Kerrville or its successor ordinance, Hangarkeeper's Liability coverage in the minimum amount of
$1,000,000.00 per occurrence unless similar coverage exists under the required general liability
policy;
E. Environmental Liability Coverage in the amount of not less than $1,000,000.00 per
occurrence.
Lessor will consider these requirements to be met if Lessee provides Lessor with written proof that the Leased Premises
have been added to Lessee's insurance coverage in the stated amounts for the other Airport properties currently leased
from Lessor by Lessee.
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.
8.03 Contents of General Liabili , PolicX: 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 areas of the Leased Premises used by Lessee, its
officers, employees, agents, contractors, invitees, and guests at the Airport, whether or not such damage or injury is the
result of negligence of the Lessee or its officers, employees, agents, contractors, invitees, and guests.
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 at the beginning of each lease term, certificates of insurance showing Lessor as an
additional insured and evidencing that all of the herein stated requirements have been met, or written assurance that the
certificate(s) of insurance already provided to Lessor are still in full force and effect for the current lease term.
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.
ARTICLE 9
INDEMNITY
9.01 Generally: LESSEE AGREES TO INDEMNIFY, DEFEND, AND HOLD HARMLESS THE CITY.
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 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 (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. Similarly, Lessee will accord the Lessor the same notice and rights.
9.02 Environmental Matters: LESSEE AGREES TO INDEMNIFY, DEFEND, AND HOLD
HARMLESS CITY, COUNTY, AND THEIR RESPECTIVE OFFICERS, EMPLOYEES, AND AGENTS from and
against any loss, costs, damages, claims, assessments, fines, and/or penalties (including reasonable attorney's fees)
(together referred to as "Losses") which may be incurred by or levied against ANY OF THOSE HEREIN
INDEMNIFIED BY ANY THIl2D PARTY INCLUDING BUT NOT LIMITED TO THE U.S. ENVIRONMENTAL
PROTECTION AGENCY OR THE TEXAS NATURAL RESOURCES CONSERVATION COMMISSION OR
THEIR SUCCESSOR AGENCIES as the result of Lessee's construction, operation, or maintenance of any aircraft
painting and refinishing facility on the Leased Premises. As used in this Section 9.02, the term Losses shall include, but
not be limited to, any losses, costs, damages, claims, assessments, fines or penalties, including but not limited to cost of
remediation, resulting from the contamination of any soil, water, or air by hazardous materials discharged by Lessee, or
by Lessee's officers, employees, agents, sublessees, invitees, licensees, guests, trespassers, or contractors, either
intentionally or negligently, into the soil, water, or air.
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 Airport Manager, 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 at the termination of this Agreement. Such signs shall be
identified and agreed upon mutually, in writing, by Lessee and Lessor.
ARTICLE 12.
ASSIGNMENT AND SUBLEASING
12.01 Assianment by Lessee: At no time shall 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 without Lessor's consent to same shall be void.
12.02 Assigmnent by Lessor: 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, an instrument assuming the lawful obligations of Lessor under this Agreement.
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, fuel, 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
pemut 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 REMEDIES
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;
C. Lessee or any guarantor of Lessee's obligations hereunder shall file 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 that 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 five (5) days after service of nofice of such event of
default by Lessor to Lessee, Lessor may give notice of its election to terminate this Agreement, and five (5) days after
service of such notice of election to ternnate, 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.
14.03 Abandonment of Business by Lessee: Lessee further agrees that the abandonment for a period of fifteen
(15) 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 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 maybe herein expressly required.
14.05 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, similar of any other subsequent event of default.
14.06 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 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 14.06.
ARTICLE 15.
~>ZESERVEDj
ARTICLE 16.
MISCELLANEOUS PROVISIONS
16.01 Damages: LESSEE 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 Quiet Enjoyment: 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 Maieure: Neither the Lessor nor Lessee shall be deemed in violation of this Agreement if it is
prevented from perfomung 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 sabotage or any other circumstances for
which it is not responsible or which aze not in its control.
16.04 No Partnership, Agency, 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 Re ations: The use of the Airport by Lessee shall be subject to any and
all rules, 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 rules, 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, 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 pemuts, 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
AND
County Judge
Kerr County Courthouse
700 Main Street
Kerrville, Texas 78028
If to Lessee: Nelson Happy
President, Mooney Airplane Company
Louis Schreiner Field
Kerrviller'Kerr County Airport
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 competent jurisdiction 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 Captions: Section headings are 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 Languaee: 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.
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 paragraph.
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16.15 Reserved
16.16 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.
16.17 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 308(a)
of the Federal Aviation Act of 1958, as amended.
16.18 Discrimination Prohibited: The Lessee, for itself, its 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 furnishing 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 in Federally-Assisted Programs of the Department of
Transportation-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 give notice of the alleged breach and
state with particularity the basis of, and the facts on which, the alleged breach has occurred. Lessee shall have at least
thirty (30) days in which to cure said alleged breach by eliminating/ceasing any such breach, or such additional period as
may be reasonable and necessary to complete the same. If such alleged breach is not so cured by eliminating/ceasing
any such breach within such period, Lessor may upon written notice to Lessee terminate 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 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.
WITNE WH OF, the parties hereto have caused this Agreement to be legally executed in duplicate
this day of , 2004.
LESSOR:
KERRVILLE-KERB COUNTY AIItPORT BOARD
By:
Dr./J}~hn Davis, ~fir,l~irport Board
APPROVED:
CITY OF L E
By: /
. Fine,. Mayor
LESSEE:
MOONEY AIRPLANE COMPANY, INC.
~:
J. Nelso~b Happ , Pre~ent
Moony Aerospace Group, Ltd, on behalf of
` Moo~y Airplane Company, Inc.
,`~/
COUNTY OF KERB, TEXAS
Pat Tinle}~; unty Judge
r..,,~,
.., _ ~
11
ATTEST:
3'vc ~G'~ ~ (2 Q~
Brenda G. Craig, City r
APPROVED AS TO FO
Michael C. Hayes, ity Attorn
THE STATE OF TEXAS §
COUNTY OF KERB §
ATTEST:
,~
tte Pieper, County Clerk
APPROVED S TO FORM:
Dave otl ,County Attorney
This instrument was aclrnowledged before me on this /}~ day of 1`._~. , 2004 by Dr.
John Davis, Chair, Kerrville-Kerr County Airport Board, for the KERB LLE- CO AIRPORT BOARD,
on behalf of said BOARD.
"`~`''LJ
g`%"~'R~ KAY HUFSTEDLER
i o hc, S e of Texas
* * MY COMMISSION EXPIRES
0
~~`• ~ MARCH B. 2007
r! OF '~
THE STATE OF TEXAS §
COUNTY OF KERB
This instrument was acknowledged before me on this ~ ~ day of ~ , 2004 by J.
Nelson Happy, President of Mooney Aerospace Group, Ltd., for MOONEY AIRPLANE CO ANY. INC., on behalf
of said MOONEY AIRPLANE COMPANY, INC.
,,,.~;a~'P~e,,, LORI A. COLLIER
;~' `~= Notary Public, State of Texas
My Ccmmission Expires
'-:4~F~~~E*' March 02, 2005
Notary Public, State of Texas
12