HomeMy WebLinkAboutResolution 827 LU'i'10 ME NO. 7
A Resolution
WHEREAS, on March 6, 1980, Delta Air Lines, Inc. , joined then or
later by Frontier Airlines, Inc. , Ozark Air Lines, Inc. ,
Continental Air Lines, Inc. , and Eastern Air Lines, Inc. ,
as Plaintiffs, filed a lawsuit styled "Delta Air Lines,
Inc. , et al v. The City of Dallas, Texas" in the United
States District Court for the Northern District of Texas,
Dallas Division, numbered "Civil Action No. CA3-80-0277-D" ,
against the City of Dallas, Texas , The City of Fort Worth,
Texas, and the Dallas-Fort Worth Regional Airport Board,
joined later by Air Canada, American Airlines, Inc. ,
Braniff Airways, Incorporated, Piedmont Aviation, Inc. , and
Texas International Airlines, Inc . , as Defendants ; and
WHEREAS, the dispute between the parties to the litigation centers
on the interpretation of certain contract documents which
have been executed by and between the Dallas-Fort Worth
Regional Airport Board and each of the named airline
carrier companies, both Plaintiffs and Defendants, and one
other carrier in addition thereto, being The Flying Tiger
Line, Inc. , which is not now a party to the Suit. The ques-
tions being litigated, among others, relate to whether
these instruments (called Use Agreements and Letter
Agreements, which are individual Leases of the Airport
terminals and properties from the Airport Board ) extend to
and cover facilities constructed beyond the planned "First
Phase" of the Airport, and whether the formula used in the
present Agreements for the lease of the terminal space,
termed "equalized rentals , " is reasonable and legally sup-
portable; and
WHEREAS, all the parties to the suit have agreed to settle the the
matters in dispute and secure the entry of a Dismissal With
Prejudice; and
WHEREAS, the terms of such Settlement are embodied in three instru-
ments :
(1) A Cover Agreement;
(2) An Amendment to the present Use Agreement called "The
Second Amendment; " and
( 3) An Amendment to the Capital Improvement Trust Account
Agreement.
O
cm OF FORT Won=
Reference is made herein to these documents as being those
instruments received by the Board and attached to a letter
dated January 15, 1982, from the office of the Vice
President of Properties of Delta Air Lines, Inc . ; and
WHEREAS, the Board, by Resolution, has authorized its Executive
Director to execute such instruments on the Board ' s behalf
and, further to request the City Councils of the Cities of
Dallas and Fort Worth to authorize execution of the Cover
Agreement by the proper City officials; NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS :
SECTION 1 .
That the Airport Board Resolution authorizing and directing the
Board ' s Executive Director to execute the three instruments referred
to above is hereby ratified and affirmed .
SECTION 2 .
That the City Manager of the City of Fort Worth is hereby
authorized and directed to execute the Cover Agreement -referred to
above.
SECTION 3.
That the City Attorney of Fort Worth, acting with the City
Attorney of Dallas and the Airport Board Counsel and all other coun-
sel of record in this lawsuit, shall secure the filing of a Dismis-
sal With Prejudice in the Court in which such case is pending ; and
the payment of the Board ' s and the Cities' accrued costs in that
case is hereby authorized.
SECTION 4.
That upon adoption of this Resolution and the adoption of
Resolutions by both the City of Dallas and the Airport Board autho-
rizing settlement, and upon the signing of the documents of settle-
ment by all necessary parties and by The Flying Tiger Line, Inc. ,
the Cover Agreement, the Amendments to both the Use Agreement and
the Capital Improvement Trust Account Agreement shall become effec-
tive and binding . At such time, the existing Use Agreements and
Letters of Agreement shall no longer have any legal force or effect.
O&N
SECTION 5.
That upon completion of all items listed above, the Executive
Director is hereby authorized and directed to execute amended, con-
formed copies of the entire Use Agreement and Capital Improvement
Trust Account Agreement.
SECTION 6.
That this Resolution shall take effect immediately upon its
passage.
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