Res 2022-182R/approving a Ground Lease Agreement for Non-Aeronautical Use between the San Marcos Regional Airport and the City of San Marcos Fire Departmen

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States of America and, as applicable, the State of Texas. In connection with such sponsor assurances, Lessee agrees that this Lease and Lessee's rights and privileges hereunder shall be subordinate to such sponsor assurances. 1.06 Ingress and Egress. Lessor agrees that Lessee, its officers, directors, agents, representatives, contractors, employees, invitees and licensees shall have the right of ingress and egress to and from the Leased Premises by means of roadways and gated entrances owned by the City for automobiles, including access during the construction phase of Airport improvements, unless otherwise agreed to in writing by both parties. Security codes for any gated entrances shall be provided to Lessee by Lessor. Such rights shall be consistent with the Rules and Regulations and applicable laws, rules and regulations ("Applicable Law") of the City, the Federal Aviation Administration ("FAA") and other govermnental authorities with jurisdiction over the Airport and this Lease. ARTICLE 2: COMMENCEMENT, TERM AND RENT 2.01 Commencement. Rental ("Rent") shall accrue commencing upon the Commencement Date (as defined below). Rent shall be payable at the place designated in Section 2.04. 2.02 Term. The term of this Lease ("Tera") will commence on and will terminate in forty (40) years (the "Expiration Date"), subject to earlier termination or renewal as provided herein. As used herein, "Lease Year" means each period of twelve (12) full calendar months from and after the Effective Date. 2.03 Rent. Lessee will develop the Leased Premises is multiple phases. Rent shall be adjusted during each phase of development ("Development Phases"). Phase I of development is equal to 241,032 square feet of the Leased Premises herein referred to as the Rentable Leased Premises (Exhibit B). Lessee hereby promises and agrees to pay Lessor for the Rentable Leased Premises equal to $2,250.00 per month for the first five (5) years of the Term. The rental rate shall be increased by a flat ten percent (10%) for each subsequent five (5) year period of the Lease. Rent will be prorated in the event of any partial calendar month. Lessee, at its option, may make advance payments of Rent up to one (1) year in advance, but there will be no discount for advance payments. 2.04 Form and Place of Payment. Rent shall be due on or before the first day of each calendar month. The City of San Marcos Finance Department will process the rent payment each month by transferring the rent amount from the budget of the San Marcos Fire Department to the Airport Enterprise Fund. ARTICLE 3: USE AND CARE OF PREMISES 3.01 Authorized Use. During the Term and any renewal thereof, the Leased Premises may be used and occupied by Lessee for the following, and for no other purpose: fire training facilities, administrative offices, and fire station and related activities; and all other uses ancillary to any of the foregoing (herein, the "Authorized Use"). In addition to the Authorized Use, with the express consent of Airport Management (as defined below), Lessee may conduct incidental activities on the Leased Premises reasonably related to the Authorized Use. The Leased Premises may not be used for any other purpose without the prior written consent of Lessor, and any commercial use of the Leased Premises not expressly authorized under the terms of this Lease may, at Lessor's election, be set forth in an amendment hereto or separate contract with Lessor.