Res 2004-162 - Laserfiche WebLink

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I I I 101. AGREEMENT AUTHORIZING USE OF AIRPORT PROPERTY FOR OPERATION OF BUSINESS Section 1. Parties. This agreement (this "Agreement") is made between Hearn Aviation, Inc. CHearn"), TEJAS AeroServices, L.P. ("TEJAS"), and the City of San Marcos (the "City"). Section 2. Background. The City is the owner of the San Marcos Municipal Airport (the "Airport"), situated in San Marcos, Caldwell County, Texas. The City and Hearn have entered into a Lease of Property for Business Purposes, dated May 19, 1998, as amended by Amendment Number One to Lease of Property for Business Purposes dated May 23,2000 (such Lease and Amendment Number One being collectively referred to as the "City Lease") for a tract of property at the Airport located at 2275 Airport Drive (the "Property"). Hearn has renovated a commercial facility (the "Facility") on the Property, and Hearn and TEJAS have entered into an Amendment to Sublease of Airport Property dated October 1,2004 (the "Sublease"). Section 3. Authorization for Operation of Airport Business by TEJAS. This Agreement authorizes TEJAS to operate a business within the Facility, subject to the terms of this Agreement. Section 4. Acceptance of Terms of City Lease. TEJAS acknowledges that it has received a copy of the documents comprising the City Lease. Hearn and TEJAS 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. Hearn and TEJAS agree not to execute any amendment to the Sublease without obtaining the prior written approval of the City. Section 5. Continuing Responsibility of Hearn under City Lease. The City and Hearn agree that the City's approval of the Sublease, and its authorization in this Agreement for TEJAS to conduct business at the Airport, do not affect Hearn's obligations under the City Lease, and Hearn remains fully responsible to the City for compliance with all provisions of the City Lease. Hearn shall continue to make lease payments to the City in accordance with the City Lease. Section 6. Acceptance of Facility by TEJAS. TEJAS acknowledges that 1) neither the City nor Hearn makes any warranty regarding the suitability of the Property or the Facility for TEJAS' intended purposes, or the presence of environmental, geologic, or other site conditions on the Property or in the Facility that may affect TEJAS' use of the Facility; 2) TEJAS accepts full responsibility for determining the suitability of the Facility for its intended purposes; 3) TEJAS has inspected and performed all tests and investigations ofthe Facility that TEJAS considers necessary to satisfy itself as to the suitability of the Facility for its intended purposes; and 4) TEJAS is accepting the Facility in its present condition, and TEJAS agrees to perform all preparation, repairs, remediation and other activities necessary to use the Facility for TEJAS' intended purposes. Section 7. Compliance with Regulations and Standards by TEJAS. TEJAS 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