Res 2008-023 - Laserfiche WebLink

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conditions on the Property or in the Facility that may affect BLUE SKIES AVIATION, LLC' use of the Facility; 2) BLUE SKIES AVIATION, LLC accepts full responsibility for determining the suitability of the Facility for its intended purposes; 3) BLUE SKIES AVIATION, LLC has inspected and performed all tests and investigations of the Facility that BLUE SKIES AVIATION, LLC considers necessary to satisfy itself as to the suitability of the Facility for its intended purposes; and 4) BLUE SKIES AVIATION, LLC is accepting the Facility in its present condition, and BLUE SKIES AVIATION, LLC agrees to perform all preparation, repairs, remediation and other activities necessary to use the Facility for BLUE SKIES AVIATION, LLC' intended purposes. Section 7. Compliance with Regulations and Standards by BLUE SKIES AVIATION, LLC. BLUE SKIES AVIATION, LLC agrees to comply with the San Marcos Municipal Airport Standard Operating Procedures and Regulations (the "Regulations") and the Minimum Standards for Fixed Base Operators and Airport Tenants (the "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 of the procedures, regulations and standards. Section 8. Payments by BLUE SKIES AVIATION, LLC to the City. BLUE SKIES AVIATION, LLC agrees to pay to the City a franchise fee in the form of a monthly amount equal to one percent (1 %) of BLUE SKIES AVIATION, LLC's gross income from all commercial activity at the Airport, excluding sales or services to federal, state or local governments or other tax exempt organizations or agencies. BLUE SKIES AVIATION, LLC shall provide access to the City, upon reasonable notice, ±o all business records necessary to verify the amount of fees and/or percentage rental due under this Lease. Payment is to be made within 10 days of the last day of the previous month and shall be based on BLUE SKIES AVIATION, LLC's income during the previous month. If BLUE SKIES AVIATION, LLC fails to pay any sum payable to the City under the terms of this Agreement when due, then interest at the maximum legal rate in the State of Texas shall accrue from the date on which the sum became due and payable. Section 9. Term. The term of this Agreement commences on February 19, 2008 and will terminate on the date the Sublease, or any extension of the Sublease, is terminated. Section 10. Use of Premises. The use of the Facility by BLUE SKIES AVIATION, LLC shall be restricted to aviation purposes, unless otherwise approved in writing by the Officers Club AeroVentures San Marcos #2, LP and the City. Specifically, the Facility shall be used and occupied for the following business activity: aircraft maintenance and inspection. BLUE SKIES AVIATION, LLC shall not use the Facility for any other purpose without the advance written consent of Officers Club AeroVentures San Marcos #2, LP and the City. BLUE SKIES AVIATION, LLC shall use the Facility in good faith continuously for this purpose throughout the term of this Agreement. BLUE SKIES AVIATION, LLC shall not leave the Facility vacant at any time, and shall keep the Facility open to the public for business during normal business hours. Section 11. BLUE SKIES AVIATION, LLC Compliance with Officers Club AeroVentures San Marcos #2, LP Obligations. BLUE SKIES AVIATION, LLC agrees to comply with all 2