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HomeMy WebLinkAboutContract 36523-R1CiT'Y SECRVARY CONTRACT N0. 3 In g5 2'�-- RENEWAL AGREEMENT CITY SECRETARY CONTRACT NO.36523 FORT WORTH SPINKS AIRPORT HANGAR LEASE AGREEMENT HANGAR 28 This RENEWAL AGREEMENT ("Lease") 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, acting by and through FERNANDO COSTA, its duly authorized Assistant City Manager, and HLP AVIATION, LLC ("Lessee"), acting by and through Harry Phillips, its duly authorized agent. Recitals The following statements are true and correct and form the basis of this Agreement: A. Lessor and Lessee entered into City Secretary Contract ("CSC") No. 36523, a Hangar Lease Agreement for the lease and use of real property known as Hangar 28 ("Leased Premises") at Fort Worth Spinks Airport ("Airport"). B. CSC No. 36523 was executed for afive-year term with one (1) five (5) year option to renew. The five-year term expired on September 30, 2012. C. Lessee hereby requests to exercise the remaining option to renew. In accordance with the provisions of the Lease, the Lessee has properly exercised its remaining option to renew the Lease for a five (5) year period. Agreement 1. The Lease is hereby renewed and extended for one term of five (5) years, commencing on October 1, 2012 and expiring on September 30, 2017. 2. All other terms and conditions of the Lease shall remain in full force and effect. Renewal Agreement HLP Aviation, LLC -Hangar 28 Page 1 of 3 [Signature Pages to Follow] 12-21-17_ OFFICIAL RECOR® CITY SECRETARY % WORTH, TX P03:41 IN IN WITNESS WUERLOr the parties hereto have executed this Agreement in multiples on this the day of - , 2012. CITY OF FORT WORTH: Fernando Costa Assistant City Manager Date: /Z/ZO Z/Z 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 Fernando Costa, 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 day O P I Yv� bjW 2012. HiAflLttvGCR MY Gomm SSI � � AES `r February , N APPROVED AS TO FORM AND LEGALITY: By: (;harlene handers Assistant City Attorney M&C: L ` Zln U Z) Approved: I Z � 1 a — IZ Renewal Agreement HLP Aviation, LLC -Hangar 28 Page 2 of 3 in and for ATTEST: By: Mary J. City Sep State of�1'exas r o aC 4 0 �VFa M ii vi a VIA �. LESSEE: IILP AVIATION, LLC ATTEST: By: By. Harry Yhillips Duly Authorized Agent Date: I l— STATE OF TEXAS COUNTY OF .ut'1 § BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared Harry Phillips known to me to be the persons whose name is subscribed to the foregoing instrument, and acknowledged to me that the same was the act of HLP Aviation, LLC and that he executed the same as the act of HLP Aviation, LLC for the purposes and consideration therein expressed and in the capacity therein stated. UNDER MY HAND AND SEAL OF OFFICE this day Vaf e� , 2012. MY COMMISSION EXPIRES Notary Public in and for August 14, 2013 Renewal Agreement HLP Aviation, LLC -Hangar 28 Page 3 of 3 of Texas OFFICIAL RECORD CITY SECRETARY City of Fort Worth, Texas COUNCIL ACTIUM Approved on 12/18/2012 DATE: Tuesday, December 18, 2012 LOG NAME: 55FWS HLPAVIATION RENEW REFERENCE NO.: **C-26023 SUBJECT: Authorize Execution of Five -Year Options to Renew Hangar Lease Agreements with HLP Aviation, L.L.C., for Lease Sites 28 and 32 at Fort Worth Spinks Airport (COUNCIL DISTRICT 8) RECOMMENDATION: It is recommended that the City Council authorize the execution of five-year options to renew Hangar Lease Agreements with HLP Aviation, L.L.C., for lease sites 28 and 32 at Fort Worth Spinks Airport, DISCUSSION: On January 8, 2008, (M&C C-22608) the City Council authorized the execution of City Secretary Contract (CSC) No. 36523, a Hangar Lease Agreement, with HLP Aviation, L.L.C. (HLP), for Hangar Site 28 at Fort Worth Spinks Airport (Spinks). Hangar Site 28 consists of 2,900 square feet of unimproved ground space and a 5,100 square foot hangar. CSC No. 36523 contained a five-year term with one five-year option to r On January 8, 2008, (M&C C-22609) the City Council also authorized the execution of CSC No. 36524, a Hangar Lease Agreement, with HLP for Hangar Site 32 at Spinks. Hangar Site 32 consists of 2,392.50 square feet of improved ground space, 8,512.50 square feet of unimproved ground space and a 9,240 square foot hangar. CSC No. 36524 contained a five-year term with one five-year option to renew. The original terms of both leases expired September 30, 2012. The lessee, HLP Aviation, L.L.C., timely exercised its options to renew each of these leases. The renewal terms will be effective October 1, 2012, to coincide with the established Schedule of Rates and Charges (Schedule), and end September 30, 2017. In accordance with the Schedule, Hangar Site 28, at a hangar rate of $1.2608 per square foot and an unimproved ground rate of $0.1816 per square foot, will generate revenue of approximately $6,956.72 annually or $579.73 monthly. Hangar Site 32, at a hangar rate of $1.2608 per square foot, an unimproved ground rate of $0.1816 per square foot, and an improved ground rate of $0.20 per square foot will generate revenue of approximately $13,674.16 or $1,139.51 monthly. Rental rates shall be subject to an increase on October 1st of any given year to reflect the upward percentage change, if any, in the Consumer Price Index for the period since the last adjustment. All Agreement terms will be in accordance with City and Aviation Department policies. The property is located in COUNCIL DISTRICT 8. FISCAL INFORMATION / CERTIFICATION : The Financial Management Services Director certifies that the Aviation Department is responsible for the Logname: SSFWS HLPAVIATION RENEW Page 1 of 2 collection and deposit of funds due to the City. FUND CENTERS: TO Fund/Account/Centers PE40 491052 0551201 PE40 491312 0551201 PE40 491352 0551201 CERTIFICATIONS: Submitted for City Manager's Office by: Originating Department Head: Additional Information Contact: $18,079.87 2 072.51 FROM Fund/AccountCemers Fernando Costa (6122) Bill Welstead (5402) Jonnie Huitt (5409) ATTACHMENTS 1. 55FWS HLPAVIATION RENEW Exhibit.pdf (Public) Logname: SSFWS HLPAVIATION RENEW Page 2 of 2 CITY SECRETARY fQ& C®NTRACT NO. FORT WORTH SPIN" AIRPORT HANGAR LEASE AGREEMENT (TERN) This HANGAR SPACE LEASE AGREEMENT ("Lease") is made and entered into by and between the CITY OF FORT WORTH ("Lessor"), a home rule municipal corporation situated in Tarrant County, Texas acting by and through Marc Ott, its duly authorized Assistant City Manager, and HLP Aviation, LLC ("Lessee"), acting by and through Harry Phillips its duly authorized agent. In consideration of the mutual covenants, promises and obligations contained herein, the parties agree as follows: 1. PROPERTY LEASED. Lessor demises and leases to Lessee 5,100 square feet of conventional hangar space (Hangar 28) as shown in Exhibit "A", and 2,900 square feet of unimproved ground space as shown in Exhibit "A" at Fort Worth Spinks Airport ("Airport") in Fort Worth, Tarrant County, Texas. Hereinafter refered to as ("Premises'). 2. TERM OF LEASE. The initial term of this Lease shall commence on the date of execution ("Effective Date") and expire at 11:59 P.M. on September 30, 2012, unless terminated earlier in accordance with this Lease. If Lessee complies with all terms and conditions of the Lease, Lessee shall have one option to renew this Lease for an additional five year term ("Renewal Term"). Lessee shall give Lessor not more than 180 and not less than 90 days written notice of its intent to renew. If Lessee fails to exercise its option to renew, this Lease shall automatically terminate upon its expiration. The rental rates for the Renewal Term shall be adjusted to comply with the rates prescribed for the Premises by Lessor's published Schedule of Rates and Charges in effect at the time of renewal. 3. RENT. 3.1. Amount. During the Initial Term of this Lease, Lessee hereby promises and agrees to pay Lessor, as annual rent for the Premises, One dollar and Thirteen Cents ($1.13) per square foot of conventional hangar space, and Sixteen Cents ($0.16) per square foot for unimproved land, for a total annual sum of Six Thousand Two Hundred Twenty Seven Dollars ($6,227.00), payable in equal monthly installments of Five Dollars and Ninety Two Cents ($518.92). The rental rates under this fn ALP Aviation, LLCSpinks Airport Hangar 28 Lease Page 1 of 13 Lessor's published Schedule of Rates and Charges. In the event that this lease commences on a day other than the first (1 st) day of any given month, the first month's rental payment shall be prorated in accordance with the number of days remaining in that month. Rental rates are subject to increase on October 1st of any given year, during the Initial Term or the Renewal Term, to reflect any upward changes in the Consumer Price Index. 3.2. Payment Dates and Late Fees. All monthly rent payments under this Lease are due on or before the first (lst) day of each month. Payments must be received during normal working hours by the due date at the location for Lessor's Aviation Department as set forth in Section 18. Rent shall be considered past due if Lessor has not received full payment after the (loth) day of the month for which payment is due. Lessor will assess a late penalty charge of ten percent (10%) per month on top of the entire month's rent for each month in which rent is past due. 4.1. Maintenance and Repairs by Lessor. Lessor agrees to perform minor repairs and maintenance on a timely basis as required by the ordinary use of the Premises under the terms of this Lease and which are not caused by any violation thereof by Lessee. Lessor shall have the right and privilege, through its officers, agents, servants or employees to inspect the Premises at any time. If Lessor determines that Lessee is responsible for any maintenance or repairs required on the Premises, it shall notify Lessee in writing. Lessee agrees to undertake such maintenance or repair work within thirty (30) calendar days of receipt of notice. If Lessee fails to undertake the maintenance or repairs recommended within this time, Lessor may, in its discretion, perform the necessary maintenance or repairs on behalf of Lessee. In this event, Lessee will reimburse Lessor for the cost of the maintenance or repairs, and payment will be due on the date of Lessee's next monthly rental payment following completion of the repairs. 4.2. Maintenance and Repairs by Lessee. Lessee agrees to keep and maintain the Premises in a good, clean and sanitary condition at all times Lessee covenants and agrees that it will not make or suffer any waste of the Premises. Lessee shall not allow any holes to be drilled or made in the brick, plaster or cement work. Lessee will not pile or store boxes, cartons, barrels or other similar items in a manner that is unsafe or unsightly. Upon termination of this Lease, Lessee agrees to return the Premises to Lessor in the same condition as originally received, subject to ordinary wear and tear consistent with normal use over time. Lessee is responsible for all damages caused by the negligence or misconduct of Lessee, its agents, servants, employees, contractors, subcontractors, patrons, licensees, invitees or trespassers. 2 4.3. Inspection. Lessor, through its officers, agents, servants or employees, reserves the right to enter the Premises at any time in order to perform any and all duties or obligations which Lessor is authorized or required to do under the terms of this Lease or to perform its governmental duties under federal, state or local rules, regulations and laws (including, but not limited to, inspections under applicable Health, Mechanical, Building, Electrical, Plumbing, and Fire Codes, or other health, safety and general welfare regulations). Lessee will permit the Fire Marshal of the City of Fort Worth or his agents to make inspection of the Premises at any time, and Lessee will comply with all recommendations made to Lessee by the Fire Marshal or his agents to bring the Premises into compliance with the City of Fort Worth Fire Code and Building Code provisions regarding fire safety, as such provisions exist or may hereafter be added or amended. Lessee shall maintain in a proper condition accessible fire extinguishers of a number and type approved by Fire Underwriters for the particular hazard involved. Lessor shall provide Lessee with advance notice of inspection when reasonable under the circumstances. 5. ACCEPTANCE OF PRENII5ES. 5.1. Asbestos Abatement Activities. Lessee acknowledges the existence of asbestos -containing. material on the Premises. After investigation by Lessor, Lessor represents that, to the best of its knowledge, asbestos -containing materials exist on the Premises to the extent identified in Lessor's Level H Asbestos Assessment Report dated October 12, 1992, a public document on file in Lessor's City Secretary's Office and incorporated herein by reference for all purposes. Lessee covenants and agrees to comply with all federal, state and local laws and regulations, now in existence or promulgated in the future, which pertain to asbestos containing materials. Lessee covenants and agrees to cooperate fully with any asbestos abatement activity plan or asbestos operations and maintenance plan set forth by Lessor. Lessee further covenants and agrees to notify and obtain written approval from Lessor prior to Lessee's undertaking of any repairs, renovations, alterations or improvements to the Premises or of any other activity, which might disturb asbestos -containing materials. Lessee agrees that it shall be solely responsible for all expenses of such activities. Lessor retains the night to perform or cause to be performed air sampling on the Premises to check for the presence of airborne asbestos fibers.. Lessee agrees to allow Lessor full access to the Premises to perform such tests. Lessor will make the results of any such tests available to Lessee at Lessee's request. 5.2. Lessee's Acceptance of Premises. Lessee agrees and covenants that it has inspected the Premises and is fully advised of its own rights without reliance upon any representation made by Lessor concerning the 3 condition of the Premises. Lessee accepts the Premises in its present condition as satisfactory for all purposes set forth in this Lease. 6. CONSTRUCTION AND IMPROVEMENTS. Lessee may not undertake or allow any party to undertake any kind of alteration, erection, improvement or other construction work on or to the Premises unless it first requests and receives in writing approval from the Director of Airport Systems or authorized representative. All such approved construction work on and improvements to the Premises shall comply fully with the Americans with Disabilities Act of 1990, as amended. 7. PARKING. Lessee shall have the right to use the designated public parking areas and, to the extent available and in accordance with policies established by the Director of Airport Systems or authorized representative. 8. USE OF PREMISES. Lessee agrees to use the Premises exclusively for aviation or aviation -related commercial activities. It is specifically agreed and stipulated that the following concessions are prohibited under this Lease, unless specifically approved by the Director of Airport Systems or authorized representative: (i) ground transportation for hire; (ii) motor vehicle rental, including taxi and limousine service; (iii) food sales; (iv) barber and valet services, (v) alcoholic beverage sales; and (vi) aviation -related sales of pilot supplies. 9. SIGNS. Lessee may, at its own expense and with the prior written approval of the Director of Airport Systems or authorized representative, create, install and maintain signs in the Terminal indicating Lessee's business. Such signs, however, must be in keeping with the size, color, location and manner of display of other signs throughout the Terminal. In addition, Lessee may, at its own expense, make, install and maintain a sign outside the Terminal on Lessor's property subject to prior written approval by the Director of Airport Systems or authorized representative as to the sign's placement, appearance, construction, and conformity with applicable City Code restrictions. Lessee shall maintain all signs in a safe, neat, sightly and physically good condition. Lessee agrees to pay Lessor for any damage, injury or necessary repairs to the Premises resulting From the installation, maintenance or removal of any such sign. Lessee also agrees to remove any C� sign at its own expense immediately upon receipt of instructions for such removal from the Director of Airport Systems or authorized representative. 10. RIGHTS AND RESERVATIONS OF LESSOR Lessor hereby retains the following rights and reservations: 10.1. Ali fixtures and items permanently attached to any structure on the Premises belong to Lessor, and any additions or alterations made thereon, shall immediately become the property of Lessor. 10.2. Lessor reserves the right to take any action it considers necessary to protect the aerial approaches of the Airport against obstruction, including, but not limited to, the right to prevent Lessee from erecting or permitting to be erected any building or other structure which, in the opinion of Lessor, would limit the usefulness of the Airport, constitute a hazard to aircraft or diminish the capability of existing or future avigational or navigational aids used at the Airport. 10.3. Lessor reserves the night to close temporarily the Airport or any of its facilities for maintenance, improvements, safety or security of either the Airport or the public, or for any other cause deemed necessary by Lessor. In this event, Lessor shall in no way be liable for any damages asserted by Lessee, including, but not limited to, damages from an alleged disruption of Lessee's business operations. 10.4. This Lease shall be subordinate to the provisions of any existing or future agreement between Lessor and the United States Government which relates to the operation or maintenance of the Airport and is required as a condition for the expenditure of federal funds for the development, maintenance or repair of Airport infrastructure. During any war or national emergency, Lessor shall have the night to Lease any part of the Airport, including its landing area, to the United States Government. In this event, any provisions of this instrument which are inconsistent with the provisions of the lease to the Government shall be suspended. Lessor shall not be liable for any loss or damages alleged by Lessee as a result of this action. However, nothing in this Lease shall prevent Lessee from pursuing any rights it may have for reimbursement from the United States Government. 10.6. Lessor covenants and agrees that during the term of this Lease it will operate and maintain the Airport and its facilities as a public airport consistent with and pursuant to the Sponsor's Assurances given by Lessor to the United States Government through the Federal Airport Act; and Lessee agrees that this Lease and Lessee's rights and privileges hereunder shall be subordinate to the Sponsor's Assurances. 11. INSURANCE. 11.1. Tunes of Coverage and Limits. Lessee shall procure and maintain at all times, in full force and effect, a policy or policies of insurance as specified herein, naming the City of Fort Worth as an additional insured and covering all public risks related to the leasing, use, occupancy, maintenance, existence or location of the Premises. Lessee shall obtain the required insurance in accordance with Exhibit `B", the "City of Fort Worth Aviation Insurance Requirements" attached hereto and made part of this Lease for all purposes. In addition, Lessee shall be responsible for all insurance to any approved construction, improvements, modifications or renovations on or to the Premises and for personal property of Lessee or in Lessee's care, custody or control. 11.2. Adjustments to Required Coverage and Limits= Insurance requirements, including additional types and limits of coverage and increased limits on existing coverages, are subject to change at Lessor's option, and Lessee will accordingly comply with such new requirements within thirty (30) days following notice to Lessee. 11.3. Certificates. As a condition precedent to the effectiveness of this Lease, Lessee shall furnish Lessor with a certificate of insurance signed by the underwriter as proof that it has obtained the types and amounts of insurance coverage required herein. Lessee hereby covenants and agrees that not less than thirty (30) days prior to the expiration of any insurance policy required hereunder, it shall provide Lessor with a new or renewal certificate of insurance. In addition, Lessee shall, on demand, provide Lessor with IV idence that it has maintained such coverage in full force and effect. 11.4. Additional Requirements. Lessee shall maintain its insurance with underwriters authorized to do business in the State of Texas and which are satisfactory to Lessor. The policy or policies of insurance shall be endorsed to cover all of Lessee's operations at the airport and to provide that no material changes in coverage, including, but not limited to, cancellation, termination, nonrenewal or amendment, shall be made without thirty (30) days' prior written notice to Lessor. 12. INDEPENDENT CONTRACTOR. It is expressly understood and agreed that Lessee shall operate as an independent contractor as to all rights and privileges granted herein, and not as an agent, representative or employee of Lessor. Lessee shall have the exclusive right to control the details of its operations and activities on the Premises and shall be solely responsible for the acts and omissions of its officers, agents, servants, employees, contractors, subcontractors, patrons, licensees and invitees. Lessee acknowledges that the doctrine of respondeat superior shall not apply as between Lessor and Lessee, its officers, agents, employees, contractors and subcontractors. Lessee further agrees that nothing herein shall be construed as the creation of a partnership or joint enterprise between Lessor and Lessee. 13. INDEMNIFICATION. I,F.SSFF. HF.RF.BYASSUMESAI,I, LIABILITYAND RF,SPONSII3ILITYFOR PROPERTY LOSS, PROPERTY DAMAGE AND/OR PERSONAL INJURY OF ANY KIND, INCLUDING DEATH, TO ANYAND ALL PERSONS, OF ANY KIND OR CHARACTER, WHETHER REAL OR ASSERTED, ARISING OUT OF OR IN CONNECTION WITH THE USE OF THE AIRPORT UNDER THIS LEASE OR WITH THE LEASING, MAINTENANCE, USE, OCCUPANCY, EXISTENCE OR LOCATION OF THE PREMISES, EXCEPT TO THE EXTENT CAUSED BY THF. NEGLIGENT ACTS OR OMISSIONS OR INTENTIONAL MISCONDUCT OF LESSOR LESSEE COVENANTS AND AGREES TO, AND DOES HEREBY, INDEMNIFY; HOLD HARMLESS AND DEFEND LESSOR, ITS OFFICERS, AGENTS, SERVANTS AND EMPLOYEES, FROM AND AGAINST ANY AND ALL CLAIMS OR LAWSUITS FOR EITHER PROPERTY DAMAGE OR LOSS (INCLUDING ALLEGED DAMAGE OR LOSS TO LESSEE'S BUSINESS AND ANYRESULTING LOST PROFITS) AND/OR PERSONAL INJURY, INCLUDING DEATH, TO ANY AND ALL PERSONS, OF ANY KIND OR CHARACTER, WHETHER REAL OR ASSERTED, ARISING OUT OF OR IN CONNECTION WITH THE USE OF THE AIRPORT UNDER THIS LEASE OR WITH THE LEASING, MAINTENANCE, USE, OCCUPANCY, EXISTENCE OR LOCATION OF THE PREMISES, EXCEPT TO THE EXTENT CA USED BY THE NEGLIGENT ACTS OR OMISSIONS OR INTENTIONAL MISCONDUCT OF LESSOR.. LESSEE ASSUMES ALL RESPONSIBILITY AND AGREES TO PAY LESSOR FOR ANY AND ALL INJURY OR DAMAGE TO LESSOR'S PROPERTY WHICH ARISES OUT OF OR IN CONNECTION WITH ANYAND ALL ACTS OR OMISSIONS OF LESSEE, ITS OFFICERS, AGENTS, EMPLOYEES, CONTRACTORS, SUBCONTRACTORS, LICENSEES, INVITEES, PATRONS OR TRESPASSERS, EXCEPT TO THE EXTENT CAUSED BY THE NEGLIGENT ACTS OR OMISSIONS OR INTENTIONAL MISCONDUCT OF LF,SSOR. LESSOR DOES NOT GUARANTEE POLICE PROTECTION TO LESSEE OR ITS PROPERTY. LESSOR SHALL NOT BE RESPONSIBLE FOR INJURY TO ANY PERSON ON THE PREMISES OR FOR HARM TO ANY PROPERTY WHICH BELONGS TO LESSEE, ITS 7 OFFICERS, AGENTS, SERVANTS, EMPLOYEES, CONTRACTORS, SUBCONTRACTORS, LICENSEES, INVITEES OR PATRONS, AND WHICH MAYBE STOLEN, DESTROYED OR IN ANY WAY DAMAGED; AND LESSEE HEREBY INDEMNIFIES AND HOLDS HARMLESS LESSOR, ITS OFFICERS, AGENTS, SERVANTS AND EMPLOYEES FROM AND AGAINST ANY AND ALL SUCH CLAIMS, EXCEPT TO THE EXTENT CAUSED BY THE NEGLIGENT ACTS OR OMISSIONS OR INTENTIONAL MISCONDUCT OFLESSOR.. I4. WAIVER OF CI][ARITABLE IMIVIUNITY OR EXEMPTION. If Lessee, as a charitable association, corporation, partnership, individual enterprise or entity, claims immunity to or an exemption from liability for any kind of property damage or personal damage, injury or death, Lessee hereby expressly waives its rights to plead defensively any such immunity or exemption as against Lessor. 15. TERMINATION. Upon termination of this Lease, all rights, powers and privileges granted to Lessee hereunder shall cease and Lessee shall immediately vacate the Premises. Lessee agrees that it will return the Premises and all appurtenances and improvements thereon in good order and repair and in the same condition as existed at the time this Lease was entered into, subject to ordinary wear and tear. Lessor shall have the immediate right to take full possession of the Premises and to remove any and all parties remaining on any part of the Premises without further legal process and without being liable for trespass or any other claim. Lessor shall also have the right to remove any and all fixtures or equipment that may be found within or upon the Premises without being liable therefor. Lessee agrees that it will assert no claim of any kind against Lessor, its agents, servants, employees or representatives which may stem from Lessor's termination of the Lease or any act incident to Lessor's assertion of its right to terminate. 16. NOTICES.. Notices required pursuant to the provisions of this Lease shall be conclusively determined to have been delivered when (1)hand-delivered to the other party, its agents, employees, servants or representatives, or (2) deposited in the United States Mail, postage prepaid, addressed as follows: To LESSOR: City of Fort Worth Aviation Department 4201 N Main St, Ste 200 Fort Worth, Texas 76106 For All OthQr Matters: Aviation Department Meacham International Airport 4201 North Main, Suite 200 Fort Worth, Texas 76106-2736 0 To LESSEE: HLP Aviation, LLC 5619 Redwine Court Fort Worth, TX 76140 17. ASSIGNMENT AND SUBLETTING. Lessee shall not assign, sell, convey, sublet or transfer any of its rights, privileges, duties or interests granted by this Lease without the advance written consent of Lessor. Any such transaction attempted by Lessee without prior written consent by Lessor shall be null and void. If Lessor consents to any such transaction, the respective assignee or sublessee shall consent to comply in Writing with all terms and conditions set forth in this Lease the same as if that party had originally executed this Lease. 18. LIENS BY LESSEE. Lessee acknowledges that it has no authority to engage in any act or to make any contract which may create or be the foundation for any lien upon the property or interest in the property of Lessor. If any such purported lien is created or filed, Lessee, at its sole cost and expense, shall liquidate and discharge the same within thirty (30) days of such creation or filing. Lessee's Failure to discharge any such purported lien shall constitute a breach of this Lease and Lessor may terminate this Lease immediately. However, Lessee's financial obligation to Lessor to liquidate and discharge such lien shall continue in effect following termination of this Lease and until such a time as the lien is discharged. 19. TAXES AND ASSESSMENTS. Lessee agrees to pay any and all federal, state or local taxes or assessments which may lawfully be levied against Lessee due to Lessee's use or occupancy of the Premises or any improvements or property placed on the Premises by Lessee as a result of its occupancy. 20. COMPLIANCE WITH LAWS, ORDINANCES, RULES AND REGULATIONS. Lessee covenants and agrees that it shall not engage in any unlawful use of the Premises. Lessee further agrees that it shall not permit its officers, agents, servants, employees, contractors, subcontractors, patrons, licensees or invitees to engage in any unlawful use of the Premises and Lessee immediately shall remove from the Premises any person engaging in such unlawful activities. Unlawful use of the Premises by Lessee itself shall constitute an immediate breach of this Lease. Lessee agrees to comply with all federal, state and local laws; all ordinances, rules and regulations of the City of Fort Worth and the City of Fort Worth Police, Fire and Health Departments; all rules and regulations established by the Director of Airport Systems; and all rules and regulations adopted by the City Council pertaining to the conduct required at airports owned and operated by the City, as such laws, ordinances, rules and regulations exist or may hereafter be amended or adopted. If Lessor notifies Lessee or any of its officers, agents, employees, contractors, subcontractors, licensees or invitees of any violation of such laws, ordinances, rules or regulations, Lessee shall immediately desist from and correct the violation. 23. NON-DISCRIMINATION COVENANT. Lessee, for itself, its personal representatives, successors in interest and assigns, as part of the consideration herein, agrees as a covenant running with the land that no person shall be excluded from participation in or denied the benefits of Lessee `s use of the Premises on the basis of race, color, national origin, religion, handicap, sex, sexual orientation or familial status. Lessee further agrees for itself, its personal representatives, successors in interest and assigns that no person shall be excluded from the provision of any services on or in the construction of any improvements or alterations to the Premises on grounds of race, color, national origin, religion, handicap, sex, sexual orientation or familial status. Lessee agrees to fiirnish its accommodations and to price its goods and services on a fair and equal basis to all persons. In addition, Lessee covenants and agrees that it will at all times comply with any requirements imposed by or pursuant to Title 49 of the Code of Federal Regulations, Part 21, Non -Discrimination in Federally Assisted Programs of the Department of Transportation and with any amendments to this regulation which may hereafter be enacted. If any claim arises from an alleged violation of this non-discrimination covenant by Lessee, its personal representatives, successors in interest or assigns, Lessee agrees to indemnify Lessor and hold Lessor harmless. 24. LICENSES AND PERMITS. Lessee shall, at its sole expense, obtain and necessary for the operation of its business at the Airport. keep in effect all Licenses and permits It is understood and agreed that by execution of this Lease, the City of Fort Worth does not waive or surrender any of its governmental powers. 26. NO WAIVER. The failure of Lessor to insist upon the performance of any term or provision of this Lease or to exercise any right granted herein shall not constitute a waiver of Lessor's right to insist upon appropriate performance or to assert any such right on any future occasion. 10 27. VENUE. Should any action, whether real or asserted, at law or in equity, arise out of the terms of this Lease or by Lessee's operations on the Premises, venue for such action shall lie in state courts in Tarrant County, Texas, or the United States District Court for the Northern District of Texas, Fort Worth Division. This Lease shall be construed in accordance with the laws of the State of Texas. 28. ATTORNEYS' FEES. In the event there should be a breach or default under any provision of this Lease and either parry should retain attorneys or incur other expenses for the collection of rent, fees or charges, or the enforcement of performance or observances of any covenant, obligation or agreement, Lessor and Lessee agree that each party shall be responsible for its own attorneys' fees. 29. SEVERABILITY. If any provision of this Lease shall be held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired. 30. FORCE MAJEURE. Lessor and Lessee shall exercise every reasonable effort to meet their respective obligations as set forth in this Lease, but shall not be held liable for any delay in or omission of performance due to force majeure or other causes beyond their reasonable control, including, but not limited to, compliance with any government law, ordinance or regulation, acts of God, acts of omission, fires, strikes, lockouts, national disasters, wars, riots, material or labor restrictions by any governmental authority, transportation problems and/or any other cause beyond the reasonable control of the parties. 31. HEADINGS NOT CONTROLLING. Headings and titles used in this Lease are for reference purposes only and shall not be deemed a part of this Lease. 32. ENTIRETY OF AGREEMENT. This written instrument, including any documents incorporated herein by reference, contains the entire understanding and agreement between Lessor and Lessee, its assigns and successors in interest, as to the matters contained herein. Any prior or contemporaneous oral or written agreement is hereby declared null and void to the extent in conflict with any provisions of this Lease. The terms and conditions of this Lease shall not be amended unless agreed to in writing by both parties and approved by the City Council of Lessor. 11 IN WITNESS WH + + OF, the arties hereto have executed this Agreement in multiples on this the a day of CITY OF FORT WORTH: By: Marc Ott Assistant City Manager Date: j— LOL 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 Marc Ott, 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 200. 5 -. MY C)OMMIM"ON EXPIRES APPROVED AS TO FORM AND LF,GALIT I Maleshia B. Farmer Assistant City Attorney Contract Authorization: Date Approved: $ I►ti 12 By: day State of Texas City Secretary �1 J21\f�fI;If7II]]b��V i IR,\ SGY fog P- HLP AVIATION, LLC By: Nam .Harry MAPS Title: Duly authorized agent Date: I STATE OF TEXAS § COUNTY OF § ATTESTS sy: BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared Harry Phillips, 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 HLP Aviation, LLC and that s/he executed the same as the act of HLP Aviation, LLC for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this ..3 � day v_ , 200W�. Notary Public in and for the State of Texas 13 Exhibit "B" City Or Fort Worth Aviation Insurance Requirements Category of Tenant Wor Operations Property Insurance General Liability Auto Environmental Impairment Aircraft Liability Flangarkeepers Liability FBOs Yes $ 3,000,000.00 $ 190000000000 $ 1,00%000.00 NIA $ 31000,000400 Flight Training * $ 17000,000.00 $ IVOOOS000400 No Small:IM Large: 5M No Air Taxi * $ 19000,000.00 $ 11000,000900 No Small:1M Large: 5M No Specialized Com. Flight Serv. $ 1,000,000.00 $ 10000,000000 No Small: 1M Large: 5M No Aerial Applications $ 130OU00.0o $ 1,000,000.00 $ 1,000,000.00 Small:IM Large: 5M No Aircraft Sales * $ 120003000,00 $ 11000,000,00 No Small:1M Large: 5M $ 11000,000400 Aircraft Rental $ 12000,000.00 $ 11000,000900 No Small:IM Large: 5M $ 11000,000200 Airframe or Power Plant Repair * $ 1,000,000.00 $ 19000,000.00 No No $ 1,000,000.00 Radio, Instrument or Propeller Repair $ 17000,000.00 $ 1,000,000.00 No No $ 1,0002000.00 Multiple Services $ 11000,000400 $ 1,000,000.00 No As Applicable As Applicable Flying Clubs * $ 11000,000.0o $ 1,000,000.00 No Small: iM Large: 5M N/A Commercial Tenant $ 1,000,000.00 $ 1,000,000.00 No As Applicable No Commercial Tenant Sublessee No $ 500,000.00 $ 5002000.00 No As Applicable No Mo. - Mo. Airport Tenant; sm. premises area, infrequent access by others (no aircraft) No $ 300,000.0O No No No No Hangar Tenant (private sm. aircraft) No No No No $ 300,000 No Fuel Facilities: Trucks N/A N/A $ 19000,000,00 $ 110003000000 No No Fuel Facilities: Tank Farm Yes $ 190002000.00 $ 1,000,000.00 $ 1,000,000.o0 No No Concessionaire: Restaurant $ 1,0000000.00 $ 1,000,000.00 No No No Concessionaire: Rent -a -car No $ 1,000,000.00 $ 1,000,000.00 1 No No No Concessionaire: Retail Shop No $ 500,000.00 No No No No * Depends on the terms of the lease agreement Property Insurance requirement depends on the lease agreement. Coverage should be replacement cost basis Liabilitycoverage's are to include products and completed operation. The policy should be written on an occurrence basis Hangarkeepers Liability is maintained according to typical exposure aviationinsreg2D01 City ®f F®�i i/1i®r�fh, Texas Mayor and Council Communication DATE: Tuesday, January 08, 2008 LOG NAME: 55HLP HGR 28 REFERENCE NO.: **C-22608 SUBJECT: Authorize Execution of a Hangar Lease Agreement with HLP Aviation, LLC, for City -Owned Hangar 28 at Fort Worth Spinks Airport RECOMMENDATION: It is recommended that the City Council authorize the City Manager to execute an aircraft Hangar Lease Agreement between HLP Aviation, LLC, and the City of Fort Worth for City -owned Hangar 28 at Fort Worth Spinks Airport. DISCUSSION: Mr. Harry Phillips of HLP Aviation, LLC, proposes to lease Hangar 28 on the north east side of Spinks Airport exclusively for the storage of aircraft or aviation -related commercial activities. The total square footage and rates for the lease are listed below. Square Feet Rate Hangar Space 5,100 Square Feet $1.13 Per Square Foot, Annually Unimproved Ground 2,900 Square Feet $0.16 Per Square Foot, Annually Total revenue generated from this lease will be $518.92 per month, or $6,227 annually. These rates are in accordance with the Aviation Department's current Schedule of Rates and Charges. The hangar lease will be for afive-year term with one five-year option to renew. The initial term of the lease will commence upon the execution of the hangar lease agreement. The lease rate shall be subject to increase on October 1st of any given year to reflect any upward changes in the Consumer Price Index (CPI). All terms and conditions of the lease agreement will be in accordance with City and Aviation Department policies. The property is located in COUNCIL DISTRICT 8. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that the Revenue Section of the Finance Department is responsible for the collection and deposit of funds due to the City under thi s Agreement. Logname: SSHLP HGR 28 Page 1 of 2 TO Fund/Account/Centers FROM Fund/Account/Centers PE40 491312 0551201 6 227.00 Submitted for City Manager's Office b� Marc A. Ott (8476) Originating Department Head: Kent Penney (5403) Additional Information Contact: Angie Highland (5402) Logname: SSHLP HGR 28 Page 2 of 2