Res 1998-026 - Laserfiche WebLink

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128 LEASE OF AIRPORT PROPERTY/BUILDING THE STATE OF TEXAS COUNTIES OF HAYS AND CALDWELL This Lease Agreement ("Lease") is made between the City of San Marcos, Texas ("Lessor") and North American Top Gun, Inc. ("Lessee"). The Lessor is the owner of the San Marcos Municipal Airport ("Airport"), situated in Caldwell County, Texas, by virtue of deeds from the United States of America. The effectiveness of this Lease is subject to review by the Federal Aviation Administration. In consideration of the obligation of Lessee to meet all terms, covenants and conditions of the lease as provided herein, Lessor demises and leases to Lessee, and Lessee takes from Lessor the ramp area adjacent to Gryphon Aviation, Inc., as depicted on the attached Exhibit "A" (the "Leased Premises"). ARTICLE I Compliance with Regulations 1.1 Lessee acknowledges that it will comply with the San Marcos Municipal Airport Standard Operating Procedures and Regulations and the Minimum Standards for Fixed Base Operators and Airport Tenants, as these standards now exist or may be amended during the term of this Lease, and any conflict between this Lease and these Procedures, Regulations and Standards will be resolved in favor of the said Procedures, Regulations and Standards. ARTICLE II Term 2.1 The Lease will commence on February 10, 1998 and end March 1, 1998. Rental shall accrue from the commencement date of this Lease as defined above, and shall be payable at the place designated for the delivery of notices to Lessor at the time of payment. 2.2 As further consideration, Lessee agrees to pay to Lessor a percentage rental in the form of a monthly fee equal to one percent (1 %) of the Lessee'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. Payment, without deduction for facility improvements or any other capital outlay, is to be made within ten (10) days of the last day of the previous month and shall be based on Lessor's income during the previous month. 2.3 As further consideration for the Leased Premises, Lessee agrees to pay to Lessor a monthly fuel flowage fee equal to two percent (2%) of the retail value of all fuel used at the Airport by Lessee which is not purchased from an authorized Airport fuel vendor. Fuel flowage fee is to be paid within ten (10) days of the last day of the previous month and shall be based on the fuel flowage during the previous month. 1