Res 2014-051/Sublease of Airport property between Caroline Aviation, LLC and Richard Moreno

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AGREEMENT AUTHORIZING USE OF AIRPORT PROPERTY FOR OPERATION OF A BUSINESS Section 1. Parties. This agreement ( "Agreement ") is made between Caroline Aviation, LLC ( "Caroline "), Corp Jet Aviation Services ( "Corp Jet "), and the City of San Marcos ( "City"). Section 2. Background. The City is the owner of the San Marcos Municipal Airport ( "Airport "), situated in San Marcos, Caldwell County, Texas. The City and Caroline have entered into a Lease of Unimproved Airport Property for Construction and Operation of Business Facilities, dated December 14, 2005 (such Lease Agreement, together with all amendments thereto before or after the Effective Date being collectively referred to as the "Primary Lease ") for a tract of property at the Airport which Is generally described as a 16,914 square foot tract of land located at 2192 and 2194 Airport Drive ( "Property"). Caroline and Corp Jet have entered Into a Sublease Agreement for the facility located at 2194 Airport Drive dated March 17, 2014 (the "Sublease "). Section 3. Authorization for Operation of Airport Business by Corp Jet. This agreement authorizes Corp Jet to operate a business with the Facility, subject to the terms of this agreement. Section 4. Acceptance of Terms of City Lease. Corp Jet acknowledges that it has received a copy of the documents comprising the City Lease. Caroline and Corp Jet agree that the Sublease is subject to all terms and conditions of the City Lease, and that any provision in the Sublease that conflicts with any provision of the City Lease is null and void and of no force or effect. Caroline and Corp Jet agree not to execute any amendment to the Sublease without obtaining the prior written approval of the City. Section S. Continuing Responsibility of Caroline under City Lease. The City and Caroline agree that the City's approval of the Sublease, and its authorization in this Agreement for Corp Jet to conduct business at the Airport, do not affect Caroline's obligations under the City Lease, and Caroline remains fully responsible to the City for compliance with all provisions of the City Lease. Caroline shall continue to make lease payments to the City in accordance with the City Lease. Section 6. Acceptance of Facility by Corp Jet. Corp Jet acknowledges that 1) neither the City nor Caroline makes any warranty regarding the suitability of the Property or the Facility for Corp Jets intended purposes, or the presence of environmental, geologic, or other site conditions on the Property or in the Facility that may affect Corp Jets use of the Facility; 2) Corp Jet accepts full responsibility for determining the suitability of the Facility for its intended purposes; 3) Corp Jet has inspected and performed all tests and investigations of the Facility that Corp Jet considers necessary to satisfy itself as to the suitability of the Facility for its intended purposes; and 4) Corp Jet is accepting the Facility in its present condition, and Corp Jet agrees to perform all preparation, repairs, remediation and other activities necessary to use the Facility for Corp Jet's intended purposes. Section 7. Compliance with Regulations and Standards by Corp Jet. Corp Jet agrees to comply with the San Marcos Municipal Airport Standard Operating Procedures and Regulations ( "Regulations ") and the Minimum Standards for Fixed Base Operators and Airport Tenants ( "Standards "), as they now exist or may be amended during the term of this Agreement, and any conflict between the Sublease or the City Lease and these procedures, regulations and standards will be resolved In favor the of procedures, regulations and standards.