Res 1998-103 - Laserfiche WebLink

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VOL 190PA; 59 2.03. The Lessee is authorized to claim a credit against the fixed rental fees, and these fixed fees only, the cost of completed permanent improvements to the Building and the Leased Premises, to include the cleaning of the existing structure and area, and all costs required to restore/convert the structure to a serviceable condition. Under no circumstances will the Lessor be responsible for the cost of any improvements made by the Lessee that exceed the fixed rental fees due and payable during the term of this Lease. 2.04 As further consideration, the Lessee agrees to pay to the 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 Leased Premises, 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 days of the last day of the previous month and shall be based on the Lessee's income during the previous month. 2.05 The Lessee agrees to pay to the Lessor a monthly fee for the use of ti.e-down or any other Airport facilities for aircraft, motor vehicles or any other equipment or items which are outside of the Leased Premises and under the custody and control of the Lessee or its employees, agents or customers. The facilities will be charged at the then established standard rental or use fee prescribed by the Lessor. 2.06 The Lessee shall provide access to the Lessor, upon reasonable notice, to all business records necessary to verify the amount of fees and/or percentage rental due under this Lease. If this Lease commences or terminates on a day other than the first day of a month, all monthly rents and fees payable by the Lessee for the first month under this Lease shall be prorated accordingly. 2.07. Th~ Lessor agrees that the revenue derived from this Lease will be allocated toward maintenanœ and improvement of the Airport. This requirement is not mandatory, however, unless it is required by existing indenture or agreement with the United States government. 2.08. If the Lessee fails to pay any rent or any other sum payable to the Lessor under the terms of this Lease 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. 2.09. The term of this Lease shall commence on June 1, 1998 and shall extend for a period of twenty (20) years. Provided Lessee is not in default on any provis.ions of this Lease, two consecutive 5 year extension options- are available. These options are subject to approval by the San Marcos City Council. The Lessee will have the right of first refusal for continuing occupancy under a revised lease at the expiration of this term if the Lessee is not in default under the terms of this Lease at the time of expiration. The terms of the revised lease will be similar to those offered by the Lessor for similar improved property at the Airport at that time. Article 3. Use and Care of Premises 3.01. The use of the Leased Premises by the Lessee shall be restri.cted to aviation purposes, unless otherwise approved in writing by the Lessor. Specifically, the Leased Premises shall be used and occupied for the business of commercial operations to include conducting flight training, aircraft rentals and charter services, aircraft maintenance, and aircraft hangaring/storage, and for no other purposes without the advance written consent of the Lessor. The Lessee shall use the Leased Premises in good faith continuously for this purpose throughout the term of this Lease. The Lessee 2