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HomeMy WebLinkAboutContract 50902-A1 19 RSCSNSD pUG "`'2019 CITY SECRETARY CONTRACT NO. AMENDMENT NO. 1 TO FORT WORTH CITY SECRETARY CONTRACT NO. 50902 �c FORT WORTH SPINKS AIRPORT GROUND LEASE AGREEMENT This AMENDMENT NO. 1 to Fort Worth City Secretary Contract No. 50902 ("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, acting by and through Fernando Costa, its duly authorized Assistant City Manager, and DANIEL GRIFFITH ("Lessee"), an individual, each individually referred to as a"Party"and collectively referred to as the"Parties". RECITALS WHEREAS, On June 13, 2018, the Parties entered into City Secretary Contract ("CSC") No. 50902 ("Agreement"), a Ground Lease Agreement for the lease and use of real property known as Lease Site 31N and any improvements and facilities thereon("Leased Premises")at Fort Worth Spinks Airport ("Airport"). WHEREAS, the Leased Premises in the Agreement contained 48,817 square feet of Ground Space which included a 12,000 square foot hangar; WHEREAS, Lessor and Lessee now wish to amend the Agreement to reflect a change in the square footage of the Leased Premises from 48,817 square feet of Ground Space to 78,229 total square feet of Ground Space; and WHEREAS, due to the increase in square footage of Ground Space, Lessor and Lessee also wish to amend the monthly rent provision in the Agreement to reflect the increased amount of square footage that will be used in the calculation for monthly and annual rent each year; and WHEREAS, Lessor and Lessee wish to replace the existing"Exhibit A"to the Agreement with a new"Exhibit A"that will reflect the new property survey of the leased premises, which is attached to this Amendment. AGREEMENT NOW,THEREFORE,for good and valuable consideration,the receipt and adequacy of which are hereby acknowledged,Lessor and Lessee hereby agree as follows: 1. The Agreement is hereby amended by deleting Section 1, "PROPERTY LEASED." in its entirety and by enacting a new Section 1 to read as follows: Fort Worth Spinks Airport Daniel Griffith Amendment No.1 to CSC No.50902 ®FFICIAI. RECUR® Page 1 of 7 CITY SECRETARY FT WORTH, TX 1. PROPERTY LEASED. Lessor hereby demises to Lessee 78,229 square feet of Ground space known as Lease Site 31N which includes a 12,000 square foot hangar at Fort Worth Spinks Airport("Airport") in Fort Worth, Tarrant County, Texas ("Premises"), as shown in Exhibit "A", attached hereto and hereby made a part of this Lease for all purposes. 2. The Agreement is hereby amended by deleting Section 3.1, "Rates and Adjustments" in its entirety and by enacting a new Section 3.1 to read as follows: 3.1. Rates and Adiustments The rental rates under this Lease are based on Lessor's current published Schedule of Rates and Charges. Rental rates are subject to increase beginning October 1, 2019, and on October 1st of any subsequent year during the Initial Term, to reflect any upward change in the Consumer Price Index for the Dallas/Fort Worth Metropolitan Area,as announced by the United States Department of Labor or successor agency(i) for the first increase,since the Effective Date of this Lease and(ii)for each subsequent increase,since the effective date of the last increase;provided,however,that Lessee's rental rates shall not exceed the then-current rates prescribed by Lessor's published Schedule of Rates and Charges for the type or types of property similar to the type or types of property that comprise the Premises. 3.1.1 Ground Rate Lessee shall commence the payment of rent for the Ground Space on the Effective Date. Lessee hereby promises and agrees to pay Lessor, as annual rent for the Ground Space,Twenty-One Thousand One Hundred Twenty-One Dollars and 83/100($21,121.83),at a rate of Twenty-Seven cents($0.27)per square foot, payable in equal monthly installments of One Thousand Seven Hundred Sixty Dollars and 15/100($1,760.15). 3. The Agreement is hereby amended by deleting Exhibit "A" to the Agreement in its entirety and is replaced with the attached Exhibit"A"to this Amendment. 4. The statements set forth in the recitals above are true and correct and form the basis upon which Lessor and Lessee have entered into this Agreement. The Lease is a public document on file in Lessor's City Secretary's Office and is incorporated herein by reference for all purposes. Fort Worth Spinks Airport Daniel Griffith Amendment No. 1 to CSC No.50902 Page 2 of 7 5. All other provisions and conditions of the Lease that are not expressly amended herein or directly in conflict with the provisions and conditions of this Amendment shall remain in full force and effect. [Signatures on Following Pages] Fort Worth Spinks Airport Daniel Griffith Amendment No.1 to CSC No.50902 Page 3 of 7 IN WITNESS WHEREOF the parties hereto have executed this Agreement in multiples on this the I JI&day of 12019. CITY OF FORT WORTH: By: Fernando Costa Assistant City Manager Date: 81Z 19 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 UNQER MY HAND AND SEAL OF OFFICE this .�� day 2019. LAUREN ROSALES Notary ID # 124818929 Qom. My Commission Expires May 10.2020 Notary Public in and for the State of Texas APPROVED AS TO FORM ATTEST: „ s AND LEGALIT By: d By: Thomas oyce Hansen Mary J. K r, t Secre Assistant City Attorney M&C: C-29145 Approval Date: June 11, 2019 Form 1295: 2019-465235 Fort Worth Spinks Airport Daniel Griffith Amendment No. 1 to CSC No.50902 Page 4 of 7 I Contract Compliance Manager: By signing I acknowledge that I am the person responsible for the monitoring and administration of this contract, includi ens all performance and reporting requirements. ea Pr p/ Mana er .b Print Name LES,SEE. DANIEL GRIFFITH By: Daniel Griffith Date: as(/ l 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 Daniel Griffith, known to me to be the person whose name is subscribed to the foregoing instrument,and that s/he executed the same for the purposes and consideration therein expressed and in the capacity therein stated. G N UNDER MY HAND AND SEAL OF OFFICE t 's day \�Sunuu ��T ,2019. o`�` � AW _ _ _ � ��• O,�p,RY pG tcp�% - c _ ary Pub-t- 'W in and for the State of Texas 61121000`�\`� Fort Worth Spinks Airport Daniel Griffith Amendment No. 1 to CSC No.50902 OFFICIAL RECORD Page 5 of 7 CITY SECRETARY FT. WORTH,TX Exhibit"A" GBStM.!M rrEs: S89°25 14'W 133.94' 1.A6 aoordw.Aws and beamp slwym heeir are Taus Coordnate Sysibm. NAD83(2011).Taws Norm CoWal 2or(4202). Al di*anQs dwm h.en are suFau dsrrms,urks Camwae noted. �.� PLACE OF 2.Al:ur rods sd sd/ar fa„d ORS and/or BTF)are 5/0•nd,With a plsec rV COMMENCING sI ; "RPL+483r. M feted NNNNenerde rfweer hereon are der<rMd to be aontroM'r-monunerda ` FOUND lir IRON ROD IRF NORTH"g CORNER OF am s NAD-lN3 C(X)RDlNATE FORT WORTH SP1t8(S AIRPORT l Sy5TEM(2011) CABINET A,sum M3,PAT.CT. �'R TDfAS warrH OENIRAL zoo nasrw CDNCWM PA►N GRID aX11RDIN,ATES � to splOV6 LR*c�1 N:6893511.79 ra+ww l E:2337648.06 N89°34'49'E 304,6W �2a 21 21 W PLACE OF BEGINNING--- 314�.13 oosTtac aoNcure R4M9lIrT FOUND x•cvT IN a rNCRETE � 1tiA � WOOD-1983 axtttDIIY1TE in h~, P�.h4� �p o i3 TEXAS f*SYSTEM CE 1�1 [NE Q h ' __, _ GRID aX)RDINATES a 3 L R N:6093514.03 hA ,la (2 .._-.-..-.TEE.23379SL75 62-75' arF � LEASE SITE 31-N ���'40"W 101.98 sr�r-p'r"'T OUND YB'CAPPED[RON R00 o®,��a 1.796 ACRES OR STAMPED••CITY OF FORM ��'�0CD 78,229 SQUARE FEET MIRTH SURVEY SECrMW BU7K 5 .� E%LSTING PETAL HANG3R . S (12,000 SQUARE FEET)- F<NRT Vic IRTH SPINKS Z AwPOORT 1, ..-.:..�_,LEASE CABINET A,SLIDE 353 p� SITE 31,1 PRT.GT. PREPARED APRI. ... '. .... ... ... .. . ilAA.....YZ 79.00' iRF 20w --r- 20.W w . . 4838 y S89°32'15'w 43.40' BLOCK S F(URT WORTH SPINKS AIM)RT N89'25'WE 24.33' WAIRPrIRTaNTR(JLMONUMENT CABINET ASLIDE353 PRT.GT, o IRS NOIS T,KINUMENT PY).A02808 FOl11D X-0. _. •- — R71/I0>t{ IRS NO 6,89 M4.76 Ir1 CDAlcRM N CDNCMM Er 2,334,148.78 4 t O p� N m � LEASE SITE 32-N PREPARED APRIL 7, EXISTING 1998 PETAL p CDFI(1FIE P EPJLT.CT CO TE P 'Io, TI.M HANGER HAW. PRE TA L aLoEwGr.ErrnND SET xCUT N 589°39 09W 183.92' .NDT8JOR9MTM T OFFKI MrX AID=e ,c TAPWauoNTv mllsXcrff TGOAS MT I111101105•TAvwff CDLwff,TEXAS 0 TRAN&TA R / 1w MATERPET9r/-`-ft- M4TMLM FORT WORTH SPINKS AIRPORT 1" BANNISTER1 E N G 1 N E E R I N G LEASE SITE 31-N M mxa rvr Rar IMerwr n N KT l nr.waoPr I nr w tars a PORTION OF BLOCK 5 J TINS RET.ISTRATTOn NO.10193823 CITY OF FORT WORTH,TARRANT COUNTY,TEXAS Fort Worth Spinks Airport Daniel Griffith Amendment No.1 to CSC No.50902 Page 6 of 7 -Exhibit A LEGAL LAND DESCRIPTION LEASE STfE 31-N BEING a potion of that certain tract of lard in the No-am Little Survey,Abstract No.930,City of Forth Worth,Tarrant County,Texas,described as Black 5,Fat Worth Spinks Airport(hereinafter referred to as Block 5),an addition to the City of Fart Worth,Tarrant Canty,Texas,according to the plat recorded in Cabinet A,Slide 353,Plat Records, Tarrant County,Texas,and being more particularly described,by metes and bounds,as folovrs: COMMENCING at a ate-half inch iron rod fixed for the Northeast comer of said Block 5,same tieing an inner ell corer of that certain tract of land described as Tract 1 in a Special Warranty Deed to Paslay Ventures,INC. (hereinafter referred to as Parlay tract),as recorded in Instrument Number D218247486,Offidai Public Records, Tarrant County,Texas(O.P.R.T.C.T.); THENCE South 99 degrees 25 minutes 14 seconds West with the common line between said Mock 5 and said Parlay tract a distance of 133.94 feet; THENCE South 00 degrees 01 minute 23 seconds East,departing the South Ime of said Parlay tract and crossing saie Block 5,a distance of 384.41 feet to an Y cut set in concrete pavement for the PLACE OF BEGINNING; THENCE continue sassing said Dock 5 for the folowing 10 courses: L South 00 degrees 01 minute 23 seconds West a distance of 70.00 fleet to a fore-eigtiths inch iron rod with plastic cap stamped"RPLS 4839'set for caner; L South 89 degrees 34 minutes 40 seconds West,a distance of 101.98 feet to a five-eighths inch iron rod with plastic cap stamped'RPLS 4838"fond for cotter; 3.South 00 degrees 24 minutes 19 seconds East,a ditsbnce of 170.09 feet to an fwe-eighths inch iron rod with plastic cap star ped"RPLS 4838"found for comer; 4.North 89 degrees 25 minutes 14 seconds East,a distance of 24.33 feet to a five-eighths inch iron rod with plastic cap stamped'RPLS 483[r found far corner,same being the Nortw&ml comer of Lease Site 32-N, Prepared April 7,1998(hereinafter referred to as Lease Site 32-Nr 5.South 00 degrees 11 minutes 47 seconds West with the West line of said Lease Site 32-N,a distance of 137.99 feet to a five-eighths itch iron rod with plastic cap stamped'RPLS 4838'found for corner; 6.South 89 degrees 34 minutes 09 seconds West,departing the West irte of said Lease Site 32-N,a distance of 183.92 feet to an Y cut set in concrete pavement for comer; 7.North 00 degrees 03 minutes 39 seconds West,a distance of 207.44 feet to a five-eighths inch iron rod with plastic cap stamped'RPLS 483ir fond for comer; B.South 89 degrees 32 minutes 15 seconds West,a distance of 43.40 feet to a five4g#hths inch iron rod with plastic cap starnped"RPLS 4838"found far corner,same being parallel and 90 degrees East,a distance of 79.00 feet from the existing caterine of twv ay; 9.North 00 degrees 03 minutes 39 seconds West with said parallel line,a distance of 170.36 feet to a five-eightlts wic h iron rod with pusbc cap stamped'RPLS 48W fond for corner; 10.North 89 degrees 34 minutes 40 seconds East,a distance of 304.68 feet to the PLACE OF BEGINNING,and containing a calculated area of 1.796 acres(78,229 square feet)of land. FORT WORTH SPINLcs AIRPORT Ir� B A N N I S T E R LEASE SITE 31-N E N G I N E E R I N G 1yo■o w�r�m i 1rrOd0.Tx 1 i u1.nLalK i n�i+zmrs ra PORTION OF BLOCK 5 TensMUSTUTM No.uitM the CITY OF FORT WORTH,TARRANT COUNTY,TEXAS Fort Worth Spinks Airport Daniel Griffith Amendment No.1 to CSC No.50902 Page 7 of 7 -Exhibit A M&C Review Page 1 of 2 Official site of the City of Fort Worth,Texas CITY COUNCIL AGENDA FoRIr— TWORTH COUNCIL ACTION: Approved on 6/11/2019 DATE: 6/11/2019 REFERENCE NO.: **C-29145 LOG NAME: 55FWS AMENDN01 DANIEL GRIFFITH CODE: C TYPE: CONSENT PUBLIC NO HEARING: SUBJECT: Authorize Execution of Amendment No. 1 to City Secretary Contract No. 50902 to Increase the Ground Space of Lease Site 31 N and Authorize Execution of a Consent to Leasehold Deed of Trust to Facilitate New Hangar Construction with Daniel Griffith, at Fort Worth Spinks Airport (COUNCIL DISTRICT 6) RECOMMENDATION: It is recommended that the City Council: 1. Authorize execution of Amendment No. 1 to City Secretary Contract No. 50902 to increase the ground space of Lease Site 31 N with Daniel Griffith, at Fort Worth Spinks Airport; and 2. Authorize execution of a Consent to Leasehold Deed of Trust to facilitate new hangar construction for lease site 31 N with Daniel Griffith, at Fort Worth Spinks Airport. DISCUSSION: On June 12, 2018, (M&C C-26726) City Council approved City Secretary Contract No. 50902, a Ground Lease Agreement with Daniel Griffith, for Lease Site 31 N, at Fort Worth Spinks Airport. Daniel Griffith has requested to increase the size of Lease Site 31 N in order to facilitate new hangar construction. Lease Site 31 N is comprised of 48,817 square feet of ground space and will increase to 78,229 square feet under the amended lease agreement, resulting in an additional $7,941.24 annual revenue. Total revenue received from this lease will be approximately $21,121.83 annually or $1,760.15 per month. Revenue is based on a ground rental rate of$0.27 per square foot, in accordance with the Aviation Department's Schedule of Rates and Charges and Lessor's market analysis at the time the original lease was executed. Rental rates shall be subject to an increase on October 1st of this year, based on the upward percentage change in the Consumer Price Index for the Dallas-Fort Worth Metropolitan area. Five-year rate adjustments will be applied to the ground rate starting on October 1, 2023, and every fifth year thereafter. At no time will the adjusted rate exceed the rate that is current in the Schedule of Rates and Charges. The Consent to Leasehold Deed of Trust will grant Mr. Griffith's lender, Pinnacle Bank, the right, subject to the previous lien, to operate as Lessee or secure another tenant in place of Mr. Griffith, if previously approved by the City Council, in the event Mr. Griffith defaults on his loan or his lease with the City of Fort Worth. The Lease Agreement prohibits Mr. Griffith from making any assignment of the lease or causing a lien to be made on improvements constructed on the leased premises without City Council approval. This type of transaction is routine for airport tenants and Staff has no objection to Mr. Griffith's request. Fort Worth Spinks Airport is located in COUNCIL DISTRICT 6. This M&C does not request approval of a contract with a business entity. http://apps.cfwnet.org/council_packet/mc_review.asp?ID=26923&councildate=6/11/2019 8/6/2019 M&C Review Page 2 of 2 FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that the Aviation Department is responsible for the collection and deposit of funds due to the City. Upon receipt, these funds will be deposited into the Municipal Airports Fund, Ground Lease Revenue Account. Estimated annual revenue from this agreement is $21,121.83. TO Fund Department Account Project Program Activity Budget Reference# Amount ID ID Year (ChartField 2) FROM Fund Department Account Project Program Activity Budget Reference# Amount ID ID Year (ChartField 2) Submitted for City Manager's Office by: Fernando Costa (6122) Originating Department Head: Bill Welstead (5402) Additional Information Contact: Dakota Shaw(5407) ATTACHMENTS Daniel Griffith 1295.pdf MC Map.pdf Pinnacle Bank 1295.pdf http://apps.cfwnet.org/council_packet/mc_review.asp?ID=26923&councildate=6/11/2019 8/6/2019