Res 1984-035 - Laserfiche WebLink

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- 2 - Ground lease rental rate lS to be negotiated at the end of each five (5) year period, but shall never exceed an increase of five cents ($.05) per annum per square foot for the five year period being negotiated. As additional consideration for this lease, Lessee agrees to construct a building for Lessee's uses as described herein at a cost in excess of Twenty-Four Thousand Dollars ($24,000.00), said improvements to become the property of Lessor as provided in Section 12, Paragraph 7 of this lease. 5. Use of Demised Premises. Lessee agrees to use the premises, identified in Paragraph 1 above, for the purpose of constructing upon said premises a storage facility within which to store Lessee's aircraft. 6. Taxi-way. Lessee agrees to construct (or overlay) a taxi-way along the Southwest end of the leased premises. Said paving shall be at the expense of Lessee and shall be in accordance with specifications approved by the City of San Marcos. The taxi- way is to be 35' wide and is to extend the entire length of the leased area to the ramp. (See Exhibit A attached for location of taxi-way). 7. Construction of Improvements.- All improvements and alterations made by Lessee on the premi- ses are subject to reasonable approval by Lessor in writing prior to construction to determine that such construction is in accordance with the various building ordinances, electrical codes and the uses and purposes contemplated by this lease agreement, and that the same will not constitute a fire or safety hazard or interference in the use of the remainder of the San Marcos Municipal Airport by the general aviation public; pro- vided, however, that such consent shall not be unreasonably withheld by Lessor. The hangar to be constructed by Lessee shall not interfere with any height restrictions imposed by the clear zone of Runway 04. No mechanic's and materialman's lien shall be fixed against any of the demised premises. 8. Insurance. -- Lessee shall maintain at his own cost and expense public lia- bility insurance on an occurrence basis with minimum limits of liability in an amount of $100,000.00 for bodily injury, personal injury or death to anyone person; up to $300,000.00 for each occurrence and $100,000.00 for damage to property and property damage insurance on the leasehold improvements In an amount not less than the fair market value thereof; and such insurance policy (policies) shall contain the endorse- ment that such insurance may not be cancelled or amended with respect to Lessee without ten (10) days prior written notice by registered mail to Lessor by the insurance company and that Lessor shall not be required to pay any premiums for insurance. Any insurance policy herein required or procured by Lessee shall contain an express waiver of any rights of subrogation by the insurance company against the Lessor. A copy of all such insurance policies shall be delivered by Lessee to Lessor within ten (10) days of the inception of each policy by the insurance company. The minimum limits of any insurance cover- age required herein shall not limit Lessee's liability under Paragraph nine (9) of this Agreement.