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Home My WebLink AboutContract 26742 CITY SECRETARY CONTRACT NO. —Ao� AMENDMENT NO. 2 TO CITY SECRETARY CONTRACT NO. 12261 FIXED BASE OPERATOR LEASE HANGAR 13-S FORT WORTH MEACHAM INTERNATIONAL AIRPORT This AMENDMENT NO. 2 TO CITY SECRETARY CONTRACT NO. 12261 ("Amendment") is made and entered into by and between the CITY OF FORT WORTH ("Lessor"), a home rule municipal corporation organized under the laws of the State of Texas and acting by and through its duly authorized Assistant City Manager, and CLARENCE J. SURY ("Lessee"), an individual. The following introductory provisions are true and correct and form the basis of this Amendment. A. On or about January 5, 1982 Lessor and Lessee entered into City Secretary Contract ("CSC") No. 12261, a lease of unimproved land at Fort Worth Meacham International Airport ("Airport") known as the Hangar 13-S Lease Site (the "Leased Premises"). On or about March 31, 1982 CSC No. 12261 was amended by CSC No. 12325 by adding additional unimproved land to the Leased Premises. CSC Nos. 12261 and 12325 shall hereafter collectively be referred to as the "Lease". B. Pursuant to the Lease, Lessee constructed improvements, including a conventional hangdr facility, on the Leased Premises (collectively the "Hangar Facility"). Title to Hangar Facility vested in Lessor upon the completion of its construction. C. The initial term of the Lease expires December 31, 2006. The Lease provides that upon expiration of the initial term, Lessee shall have two (2) consecutive rights of first refusal to lease the Leased Premises for consecutive terms of five (5) years (each a"Renewal Term") each at the rental rate in effect at the start of each term for comparable real property at the Airport. D. With Lessor's consent, Lessee made substantial improvements to the Hangar Facility in the fall of 2000. Lessee was not required to make these improvements under the terms of the Lease. These improvements will significantly increase the value and marketability of the Hangar Facility after final expiration of the Lease. In return for this service, Lessor has agreed to amend the Lease to specify that rental rates for any Renewal Term of the Lease shall be at the unimproved ground rate then in effect. NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Lessor and Lessee agree as follows: 1. Paragraph A (Term) of Article IV (Term of Leasehold) of the Lease is hereby deleted in its entirety and replaced with the following: Page 1 Amendment No.2 to City Secretary Contract No. 12261 between City of Fort Worth and Clarence J. Sury r� V A. TERM. The term of this lease shall be for a period of twenty-five (25) years, commencing January 1, 1982 and expiring December 31, 2006, unless terminated earlier as provided herein (the "Initial Term"). If Lessee exercises and performs all of its duties and obligations during the Initial Term, Lessee shall have two (2) consecutive rights of first refusal to execute new leases for the demised premises for two additional consecutive terms of five (5) years each (each a "Renewal Term") on terms and conditions specified by Lessor at that time and at a rental rate specified in Article V of this Lease. In order to exercise a right of first refusal hereunder, Lessee shall provide Lessor with written notice of its desire to enter into a new lease not less than one hundred eighty(180) days nor more than two hundred seventy (270) days prior to the expiration of the term then in effect. If Lessee fails to exercise its first right of first refusal, it shall concurrently waive its second right of first refusal to lease the demised premises. 2. Notwithstanding anything to the contrary in Article V of the Lease, between the execution date of this Amendment and December 31, 2001, rent for the Premises shall be at the same rate as that charged for the month of January 2001. Effective January 1, 2002, rent for the Premises shall be adjusted to comply with the rental rate for unimproved land at the Airport that is in effect at that time, as specified by the Aviation Department's Schedule of Rates and Charges. In accordance with Section V.B of the Lease before this Amendment, this adjusted rental rate shall remain constant until expiration of the Initial Term on December 31, 2006. 3. Paragraph B (Adjustment of Rentals) of Article V of the Lease is hereby deleted in its entirety and replaced with the following: B. ADJUSTMENT OF RENTALS. During any Renewal Term, for the period between the effective date of the Renewal Term and the immediately following September 30th, Lessee shall pay rent for the demised premises at a rate that complies with the rate charged at that time for unimproved land at the Airport, as specified by the Aviation Department's Schedule of Rates and Charges or similarly published schedule. Thereafter, Lessee's rental rate shall be subject to increase by Lessor on October 1 st of any year to reflect the upward percentage change, if any, in the Consumer Price Index for the Dallas/Fort Worth Metropolitan Area, or similar index, as announced by the United States Department of Labor or successor agency (i), for the first increase, since the effective date of the Renewal Term then in effect and (ii) for any subsequent increase, since the effective date of the last increase; provided, however, that Lessee's rental rates, as adjusted, shall not at any time exceed the then-current rate charged for unimproved land at the Airport, as prescribed by Lessor's Schedule of Rates and Charges or similarly published schedule in effect at the time. 4. All capitalized terms used but not defined in this Amendment shall have the meanings assigned to them in the Lease. Page 2 Amendment No.2 to City Secretary Contract No. 12261 (�(� ��E��ppg (� between City of Fort Worth and Clarence J.Sury U CNA,6 UaE o LJ 5. All provisions and conditions of the Lease that are not expressly amended herein shall remain in full force and effect. EXECUTED this / 71� day of ) 2001. CIaFOO TH:,...CLARENCE J. SURY: �.' By A,-L Name: Assistant City Manager ATTEST: ATTEST: By: By:y_ �iYl✓`� Gloria Pe son City Secretary APPROVED AS TO FORM AND LEGALITY: Peter Vaky Assistant City Attorney Page 2 Amendment No. 2 to City Secretary Contract No. 12261 UBO d' UuI5hVU1® between City of Fort Worth and Clarence J.Sury V tIe uVO C'NHF T1y4^oa STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared Clarence J. Sury, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that the same was his act and that he executed the same for the purposes and consideration therein expressed and in the capacity therein stated. / GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of Al rc h , %�, NETTIE LANE a, Notary Public,State of Texas Notary Public in and for the State of Texas W Commission Expires �•� July 26,2003 STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared fk;K "-,- , known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that the same was the act of the City of Fort Worth and that he executed the same as the act of the City of Fort Worth for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this /-5V'day of , -Zoo aOOt—S'o ROSELLA BARNES *1 NOTARY pUBLIC 9 fP f State of Texas Notary Public in and for the State of Texas Comm.Exp,03-31-2005 GENO City of Fort Worth, Texas "aljor And Council Communication DATE REFERENCE NUMBER LOG NAME PAGE 4/24/01 **C-18569 55SURY 1 of 1 SUBJECT LEASE AMENDMENT NO. 2 TO CITY SECRETARY CONTRACT NO. 10723 AND AMENDMENT NO. 2 TO CITY SECRETARY CONTRACT NO. 12261 GROUND LEASES WITH THE AERO PLANE SHOP AT FORT WORTH MEACHAM INTERNATIONAL AIRPORT RECOMMENDATION: It is recommended that the City Council authorize the City Manager to execute lease amendments with the Aero Plane Shop at Fort Worth Meacham International Airport for Hangars 12S and 13S, stipulating that the lease rate will be charged at the unimproved ground rental rate during the renewal period of the leases. DISCUSSION: City Secretary Contract (CSC) No. 10723 for Hangar 12S expires on September 30, 2002, with two 5- year rights of first refusal to renew the lease. CSC No. 12261 for Hangar 13S expires on December 31, 2006, with two 5-year rights of first refusal to renew the lease. There is some ambiguity in the lease language as to what the rental rate will be during renewal terms. Mr. Clarence J. Sury, President of the Aero Plane Shop, has made in excess of $45,000 worth of repairs to the hangars that are beyond the requirements of his leases. The hangars are owned by the City. In exchange for the repairs, Mr. Sury has asked for an amendment to the leases that would stipulate that the rental rates during the renewal period would continue at the unimproved ground rental rate in effect at that time. Given that the repairs Mr. Sury has completed will significantly add to the life of the hangar, staff recommends that the amendment be approved. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that the Revenue Division of the Finance Department is responsible for the collection and deposit of all fees due under these leases. MG:k Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY Office by: (to) AFROVED PE40 491352 0552001 CITY COUNCIL Mike Groomer 6140 Originating Department Head: MR 24 2M' Lisa A.Pyles 5403 (from) V Additional Information Contact: City Secretary of the City of Fort Worth,Texas.. Lisa A.Pyles 5403