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Res 2016-180/authorizing the City Manager to execute a ground lease for approximately 5,412 square feet of property located off Airport Drive at the San Marcos Regional Airport with Coast Flight Training and Management, Inc
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Res 2016-180/authorizing the City Manager to execute a ground lease for approximately 5,412 square feet of property located off Airport Drive at the San Marcos Regional Airport with Coast Flight Training and Management, Inc
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2/1/2017 12:57:12 PM
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City Clerk
City Clerk - Document
Resolutions
City Clerk - Type
Approving
Number
2016-180
Date
12/20/2016
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8.03. Lessor reserves the right to temporarily close the Airport or any of the facilities thereon for <br />maintenance, improvement, safety or security of the Airport or the public, or for other cause deemed <br />necessary by Lessor, without being liable to Lessee for any damages caused by disruption of <br />Lessee's business operations or for any other reason. <br />8.04. This Lease shall be subordinate to the provisions of any existing or future agreement between <br />Lessor and the United States or the State of Texas, relative to the operation or maintenance of the <br />Airport, the execution of which has been or may be required as a condition to the expenditure of <br />federal or state funds for the development, maintenance, and repair of the Airport infrastructure. <br />8.05. During time or war or national emergency, Lessor shall have the right to lease the landing area or <br />any part thereof to the United States Government for military or naval use, and, if such lease is <br />executed, the provisions of this instrument, insofar as they are inconsistent with the provisions of <br />the lease to the Government, shall be suspended. Nothing contained in this Lease shall prevent <br />Lessee from pursuing any rights which Lessee may have for reimbursement from the United States <br />Government for the taking of any part of Lessee's leasehold or for any loss or damage caused to <br />Lessee by the United States Govermnent. <br />8.06. Lessor further covenants and agrees that during the term of this Lease, it will operate and maintain <br />the Airport and its public airport facilities as a privately owned, public use airport, unless the <br />Airport is acquired by a public entity. <br />ARTICLE 9: OPERATION OF THE AH2PORT <br />9.01. This Lease, and any interest granted to any lender or other third party by Lessee, shall be <br />subordinate to the provisions of any existing or future agreement between Lessor and the United <br />States Government or the State of Texas, which relates to the operation or maintenance of the <br />Airport and is required as a condition for the expenditure of federal or state funds for the <br />development, maintenance, or repair of Airport infrastructure. In the event that any such existing <br />or future agreement directly causes a material restriction, impairment, or interference with the <br />Lessee's primary operations on the Leased Premises ("Limitation") for a period of less than seven <br />(7) calendar days, this Lease shall continue in full force and effect. If the Limitation lasts more than <br />seven (7) calendar days, Lessee and Lessor shall negotiate in good faith to resolve or mitigate the <br />effect of the Limitation. If Lessee and Lessor are in good faith unable to resolve or mitigate the <br />effect of the Limitation, and the Limitation lasts between seven (7) and one hundred eight (180) <br />days, then for such period (i) Lessee may suspend the payment of any rent due hereunder, but only <br />if Lessee first provides adequate proof to Lessor that the Limitation has directly caused Lessee a <br />material loss in revenue; (ii) subject to ordinary wear and tear, Lessee shall maintain and preserve <br />the Leased Premises and its improvements in the same condition as they existed on the date such <br />Limitation commenced; and (iii) the term of this Lease shall be extended, at Lessee's option, for a <br />period equal to the duration of such Limitation. If the Limitation lasts more than one hundred eighty <br />(180) days, then (i) Lessor and Lessee may, but shall not be required to, (a) further adjust the <br />payment of rent and other fees or charges, (b) renegotiate maintenance responsibilities and (c) <br />Page 10 of 21 <br />
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