Res 1998-173 - Laserfiche WebLink

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'or"o 704 VOL ~U PAG[ L 2.02. The Lessee agrees to pay to the Lessor a fixed rental in the sum of $.10 per square foot per year for the entire area of the Leased Premises. The annual amount for the fixed rental shall be paid in equal monthly installments in the amount of $ 180.60, which shall be due and payable on the last day of each month for the succeeding month. The Lessee, at its option, may make advance payments of up to one year's fixed rentals, but there will be no discount for these payments. 2.03. Lessee will construct one enclosed metal T-hangar building (the "hangars") on each of the two tracts comprising the Leased Premises. The Lessee warrants that it will invest a minimum of $200,000.00 in these capital improvements. 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 of the Lessee's 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 tie-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. The Lessor agrees that the revenue derived from this Lease will be allocated toward maintenance 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 October 1, 1998 and shall extend for a period of 30 years. At the end of the first 20 years of this Lease, the fixed rental rate provided for in Paragraph 2.02 above shall be increased to the then-prevailing market rate for raw land as determined by the City of San Marcos, for the remaining lease term. The market rate shall be limited, as a minimum, to nothing less than $.10 per square foot per year.