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HomeMy WebLinkAboutContract 40001 (2)i w: ■ FORT WORTH MEACHAM INTERNATIONAL AIRPORT GROUND LEASE AGREEMENT AND ASSOCIATED MANDATORY IMPROVEMENTS This GROUND LEASE 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 and acting by and through Fernando Costa, its duly authorized Assistant City Manager, and COOK CHILDREN'S MEDICAL CENTER ("Lessee"), acting by and through George B. Montague, its duly authorized Vice President -Real Estate. In consideration of the mutual covenants, promises and obligations contained herein, the parties agree as follows: 1. PROPERTY LEASED. Lessor hereby demises to Lessee 110,584 square feet of ground space at Fort Worth Meacham International Airport ("Airport") in Fort Worth, Tarrant County, Texas, identified as Lease Site 38N ("Premises"), as shown in Exhibit "A", attached hereto and hereby made a part of this Lease for all purposes. 2. TERM OF LEASE. 2.1. Initial Term. The Initial Term of this Lease shall commence on the date of its execution ("Effective Date") and expire at 11:59 p.m. on September 30, 2040, unless terminated earlier as provided herein. 2.2 Renewals. If Lessee performs and abides by all provisions and conditions of this Lease, upon expiration of the Initial Term of this Lease, Lessee shall have two (2) consecutive options to renew this Lease for two (2) additional successive terms of five (5) years each (each a "Renewal Term") at a rental rate calculated in accordance with Section 3.1 of this Lease and on terms and conditions that may be prescribed by Lessor at the time. Lessee shall notify Lessor in writing of its intent to exercise a respective option not less than ninety (90) nor more than one hundred eighty (180) days prior to the expiration of the term then in effect. If Lessee does not exercise its option for a first Renewal Term within the time frame provided herein, Lessee shall automatically and simultaneously forfeit its second option to lease the Premises for a second Renewal Term, and Lessee shall no longer have any rights or interest in the Premises following the expiration of the Initial Term. OFFICIAL RECORD Fort Worth Meacham International Airport Ground Lease Agreement Lease Site 38N Page I of 19 CITY SECRETARY 2.3. Holdover, If Lessee holds over after the expiration of the Initial Term or any Renewal Term, this action will create a monthAo-month tenancy. In this event, for and during the holdover period, Lessee agrees to pay all applicable rentals, fees and charges at the rates provided by Lessor's Schedule of Rates and Charges or similarly published schedule in effect at the time. 3.1. Rates and Adjustments. Lessee shall commence the payment of rent, in accordance with this Section 3, on the date that the first certificate of occupancy is issued for a hangar structure erected pursuant to Section 4.1 of this Lease ("Occupancy Date"). From the Occupancy Date until September 30, 2010, Lessee shall pay Lessor rent which is based on a rental rate $0.27 per square foot on an annual basis, and which will be payable in monthly installments of $2,488.14. On October 1, 2010, and on October 1st of each year thereafter during both the Initial Term and any Renewal Term, Lessee's rental rate shall be subject to increase by Lessor to reflect the upward percentage change, if any, in the Consumer Price Index for the Dallas/Fort Worth Metropolitan Area, as announced by the United States Department of Labor or successor agency (1), 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 (i) be increased in any given year by more than ten percent (10%) over the rental rate paid by Lessee during the immediately preceding twelve (12) months or (ii) exceed the then -current rates prescribed by Lessor's published Schedule of Rates and Charges for the type or types of property at the Airport similar to the type or types of property that comprise the Premises. If the Occupancy Date occurs on or after October 1, 2010, Lessee's initial payment of rent shall be calculated in the same manner as it would have if the Occupancy Date and Lessee's initial payment of rent had occurred prior to October 1, 2010. 3.2. Payment Dates and Late Fees. Monthly rent payments are due on or before the first (1st) day of each month. Payments must be received during normal working hours by the due date at the location for Lessor's Aviation Department set forth in Section 15. Rent shall be considered past due if Lessor has not received full payment after the tenth (loth) day of the month for which payment is due. Without limiting Lessor's termination rights as provided by this Lease, Lessor will assess a late penalty charge of ten percent (10%) per month on the entire balance of any overdue rent that Lessee may accrue. Fort Worth Meacham International Airport Ground Lease Agreement Lease Site 38N Page 2 of 19 4. CONSTRUCTION AND IMPROVEMENTS. 4.1. Mandatory Improvements. Lessee covenants and agrees that it shall improve the Premises and such improvements shall hereinafter be referred to as "Mandatory Improvements". Lessee shall diligently commence construction of such Mandatory Improvements within six (6) months following the Effective Date of this Lease with the completion to be within twelve (12) months of construction start date. Lessee shall fully comply with all provisions of this Section 4 in the performance of any such Mandatory Improvements. Upon issuance of the Certificate of Occupancy or earlier termination of this Lease, Lessor shall take full title to any Mandatory Improvements on the Premises. 4.2. Discretionary Improvements. In addition to the Mandatory Improvements, Lessee may, at its sole discretion, perform modifications, renovations, improvements or other construction work on the Premises. Any modifications, renovations, improvements or other construction work on the Premises that do not constitute the Mandatory Improvements shall be referred to hereafter as "Discretionary Improvements". Lessee may not initiate any Discretionary Improvement with a cost in excess of $10,000.00 on or to the Premises unless it first submits all plans, specifications and estimates for the costs of the proposed work in writing and also requests and receives in writing approval from the Director of Airport Systems or authorized representative ("Director"). Lessee covenants and agrees that it shall fully comply with all provisions of this Section 4 in the performance of any such Discretionary Improvements. Upon completion of any such Discretionary Improvements or earlier termination of this Lease, Lessor shall take full title to any Discretionary Improvements on the Premises. 4.3. Process for Approval of Plans. Lessee's plans for construction and improvements shall conform to the Airport's architectural standards and must also receive written approval from the City's Departments of Development, Engineering and Transportation and Public Works. All plans, specifications and work shall conform to all federal, state and local laws, ordinances, rules and regulations in force at the time that the plans are presented for review. 4.4. Documents. Lessee shall supply the Director with comprehensive sets of documentation relative to the Mandatory Improvements and any Discretionary Improvements, including, at a minimum, as -built drawings of each project. As -built drawings shall be new drawings or redline changes to drawings previously provided to the Director. Lessee shall supply the textual documentation in computer format as requested by Lessor. Fort Worth Meacham International Airport Ground Lease Agreement Lease Site 38N Page 3 of 19 4.5. Bonds Required of Lessee. Prior to the commencement of the Mandatory Improvements or any Discretionary Improvements, Lessee shall deliver to Lessor a bond, executed by a corporate surety in accordance with Texas Government Code, Chapter 2253, as amended, in the full amount of each construction contract or project. The bonds shall guarantee (1) satisfactory compliance by Lessee with all requirements, terns and conditions of this Lease, including, but not limited to, the satisfactory completion of the respective modifications, renovations, construction projects or improvements, and (ii) full payments to all persons, firms, corporations or other entities with whom Lessee has a direct relationship for the performance of such modifications, renovations, construction projects or improvements. In lieu of the required bond, Lessee may provide Lessor with a cash deposit or an assignment of a certificate of deposit in an amount equal to 25% of the full amount of each construction contract. If Lessee makes a cash deposit, Lessee shall not be entitled to any interest earned thereon. Certificates of deposit shall be from a financial institution in the Dallas -Fort Worth Metropolitan Area which is insured by the Federal Deposit Insurance Corporation and acceptable to Lessor. The interest earned on the certificate of deposit shall be the property of Lessee and Lessor shall have no rights in such interest. If Lessee fails to complete the respective modifications, renovations, construction projects or improvements, or if claims are filed by third parties on grounds relating to such modifications, renovations, construction projects or improvements, Lessor shall be entitled to draw down the full amount of Lessee's cash deposit or certificate of deposit. 4.6. INTENTIONALLY DELETED 4.7. Releases by Lessor Upon Completion of Construction Work. Lessor will allow Lessee a reimbursement from its cash deposit account or reduction oI its claim upon Lessor's certificate of deposit equal to 25% of amounts paid to a contractor for construction work upon (1), where Lessee serves as its own contractor, verification that Lessee has completed construction work or (ii), where Lessee uses a contractor, receipt of the contractor's invoice and verification that the contractor has completed its work and released Lessee to the extent of Lessee's payment for such work, including bills paid, affidavits and waivers of liens. Any remaining deposit after issuance of a Certificate of Occupancy and receipt by Lessor of proof that all construction bills have been paid, including waivers of liens shall be returned promptly to Lessee. 5. USE OF PREMISES. Lessee hereby agrees to use the Premises solely for aviation and medical transport - related purposes only and strictly in accordance with the terms and conditions of this Lease. Lessee shall have the right to sublease portions of the Premises, including individual hangars constructed pursuant to the Mandatory Improvements, to various third parties ("Sublessees") under terms and conditions acceptable to and determined by Lessee, Fort Worth Meacham International Airport Ground Lease Agreement Lease Site 38N Page 4 of 19 provided that all such arrangements shall be in writing and approved in advance by Lessor, which approval shall not be unreasonably withheld. All written agreements executed by Lessee to Sublessees for any portion of the Premises shall contain terms and conditions that (i) do not conflict with Lessee's duties and obligations under this Lease; (ii) incorporate the terms and provisions of this Lease; (iii) restrict the use of the Premises to aircraft storage or other aviation or aviation -related purposes acceptable to Lessor; and (iv) treat users of the same or substantially similar facilities in a fair and non-discriminatory manner. Lessee shall use a standard lease form for all Sublessees and shall submit a copy of such standard lease form, including rental rates, to the Director prior to Lessee's execution of its first lease and from time to time thereafter following any material changes to such lease form, including, without limitation, any changes to Lessee's rental rates for portions of the Premises. Lessee may make non -material modifications to its standard lease to the extent that such are not contrary to Lessor's Sponsor's Assurances. 6. REPORTS, AUDITS AND RECORDKEEPING. Within thirty (30) days following the end of each calendar year, Lessee shall provide Lessor with a written annual report, in a form acceptable to the Director that reflects Lessee's rental rates for the Mandatory Improvements and any Discretionary Improvements on the Premises for the immediately preceding calendar year. Lessor may request, and Lessee shall promptly provide, similar reports on a more frequent basis that reflect Lessee's rental rates for the Mandatory Improvements and any Discretionary Improvements on the Premises for the period requested by Lessor. These reports shall be delivered to Lessor's Department of Aviation at the address provided in Section 15. In addition, Lessee shall keep and maintain books and records pertaining to Lessee's operations at the Airport and other obligations hereunder in a manner satisfactory to Lessor's Internal Auditor and at a location within the City of Fort Worth. Upon Lessor's request and following reasonable advance notice, Lessee will make such books and records available for review by Lessor during Lessee's normal business hours. Lessor, at Lessor's sole cost and expense, shall have the right to audit such books and records in order to ensure compliance with the terms of this Lease and the Sponsor's Assurances made by Lessor to the Federal Aviation Administration, 7. UTILITIES. Lessee, at Lessee's sole cost and expense, shall be responsible for the installation and use of all utility services to all portions of the Premises and for all other related utility expenses, including, but not limited to, deposits and expenses required for the installation of meters. Lessee further covenants and agrees to pay all costs and expenses for any extension, maintenance or repair of any and all utilities serving the Premises. In addition, Lessee agrees that all utilities, air conditioning and heating equipment and other electrically - operated equipment which may be used on the Premises shall fully comply with Lessor's Mechanical, Electrical, Plumbing, Building and Fire Codes ("Codes"), as they exist at the time of installation. Fort Worth Meacham hitemational Airport Ground Lease Agreement Lease Site 38N Page 5 of 19 8. MAINTENANCE AND REPAIRS. 8.1. 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, at Lessee's sole cost and expense, will make all repairs necessary to prevent the deterioration in condition or value of the Premises and any improvements thereon, including, but not limited to, doors, windows and roofs for such improvements, and all fixtures, equipment, modifications and pavement on the Premises. Lessee shall be responsible for all damages caused by Lessee, its agents, servants, employees, contractors, subcontractors, licensees or invitees, and Lessee agrees to fully repair or otherwise cure all such damages at Lessee's sole cost and expense. Lessee agrees that all improvements, trade fixtures, furnishings, equipment and other personal property of every kind or description which may at any time be on the Premises shall be at Lessee's sole risk or at the sole risk of those claiming under Lessee. Lessor shall not be liable for any damage to such property or loss suffered by Lessee's business or business operations which may be caused by the bursting, overflowing or leaking of sewer or steam pipes, from water from any source whatsoever, or from any heating fixtures, plumbing fixtures, electric wires, noise, gas or odors, or from causes of any other matter. 8.2. Compliance with ADA. Lessee, at its sole cost and expense, agrees to keep and maintain the Premises in full compliance at all times with the Americans with Disabilities Act of 1990, as amended ("ADA"). In addition, Lessee agrees that all improvements it makes at the Airport shall comply with all ADA requirements. 8.3. Inspections. 8.3.1. Lessor shall have the right and privilege, through its officers, agents, servants or employees, to inspect the Premises. Except in the event of an emergency, Lessor shall conduct such inspections during Lessee's ordinary business hours and shall use its best efforts to provide Lessee at least two (2) hours' notice prior to any inspection. 8.3.2. If Lessor determines during an inspection of the Premises that Lessee is responsible under this Lease for any maintenance or repairs, Lessor shall notify Lessee in writing. Lessee agrees to begin such maintenance or repair work diligently within thirty (30) calendar days following receipt of such notice and to then complete such maintenance or repair work within a reasonable time, considering the nature of the work to be done. If Lessee fails to begin the recommended maintenance or repairs within such time or fails to complete the Fort Worth Meacham Intema[ional Airport Ground Lease Agreement Lease Site 38N Page 6 of 19 maintenance or repairs within a reasonable time, Lessor may, in its discretion, perform such maintenance or repairs on behalf of Lessee. In this event, Lessee will reimburse Lessor for the cost of the maintenance or repairs, and such reimbursement will be due on the date of Lessee's next monthly rent payment following completion of the maintenance or repairs. 8.3.3. During any inspection, Lessor may perform any obligations that Lessor is authorized or required to perform under the terms of this Lease or pursuant to its governmental duties under federal state or local laws, rules or regulations. 8.3.4. Lessee will permit the City's Fire Marshal or his or her authorized agents to inspect the Premises and Lessee will comply with all requirements of the Fire Marshal or his or her authorized agents that are necessary 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, at the time any Mandatory or approved Discretionary Improvements are made. Lessee shall maintain in proper condition accessible fire extinguishers of a number and type approved by the Fire Marshal or his or her authorized agents for the particular hazard involved. 8.4. Environmental Remediation. To the best of Lessor's knowledge, the Premises comply with all applicable federal, state and local environmental regulations or standards. Lessee agrees that it has inspected the Premises and is fully advised of its own rights without reliance upon any representation made by Lessor concerning the environmental condition of the Premises. LESSEE, AT ITS SOLE COST AND EXPENSE, AGREES THAT IT SHALL BE FULLY RESPONSIBLE FOR THE REMEDIATION OF ANY VIOLATION OF ANY APPLICABLE FEDERAL, STATE OR LOCAL ENVIRONMENTAL REGULATIONS OR STANDARDS THAT IS CAUSED BY LESSEE, ITS OFFICERS, AGENTS, SERVANTS, EMPLOYEES, CONTRACTORS, SUBCONTRACTORS OR INVITEES. 9. SIGNS . Lessee may, at its sole expense and with the prior written approval of the Director, install and maintain signs on the Premises related to Lessee's business operations. Such signs, however, must be in keeping with the size, color, location and manner of display of other signs at the Airport. Lessee shall maintain all signs in a safe, neat, sightly and physically good condition. 10. RIGHTS AND RESERVATIONS OF LESSOR. Lessor hereby retains the following rights and reservations: Fort Worth Meacham International Airport Ground Lease Agreement Lease Site 38N Page 7 of 19 1ME 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. 10.2. Lessor reserves the right to develop and improve the Airport as it sees fit, regardless of the desires or view of Lessee, and without interference or hindrance by or on behalf of Lessee, provided Lessee's intended use of the Premises is not unreasonably impaired. Accordingly, nothing contained in this Lease shall be construed to obligate Lessor to relocate Lessee as a result of any such Airport developments or improvements. 10.3. 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. In the event that any such existing or future agreement directly causes a material restriction, impairment or interference with Lessee's primary operations on the Premises ("Limitation") for a period of less than seven (7) calendar days, this Lease shall continue in full force and effect. If the Limitation lasts more than seven (7) calendar days, Lessee and Lessor shall negotiate in good faith to resolve or mitigate the effect of the Limitation. If Lessee and Lessor are in good faith unable to resolve or mitigate the effect of the Limitation, and the Limitation lasts between seven (7) and one hundred eighty (180) days, then for such period (i) Lessee may suspend the payment of any rent due hereunder, but only if Lessee first provides a written statement to Lessor that the Limitation has directly caused Lessee a material loss in medical transports; (ii) subject to ordinary wear and tear, Lessor shall maintain and preserve the Premises and its improvements in the same condition as they existed on the date such Limitation commenced; and (ill) the term of this Lease shall be extended, at Lessee's option, for a period equal to the duration of such Limitation. If the Limitation lasts more than one hundred eighty (180) days, then (i) Lessor and Lessee may, but shall not be required to, (a) further adjust the payment of rent and other fees or charges, (b) renegotiate maintenance responsibilities and (c) extend the term of this Lease, or (ii) Lessee may terminate this Lease upon thirty (30) days' written notice to Lessor, and nothing in this Lease shall prevent Lessee from pursuing any rights it may have as a direct result of the unresolved Limitation. To the best of Lessor's knowledge and belief, Lessor warrants that no such agreements currently exist which would cause a Limitation. 10.4. During any war or national emergency, Lessor shall have the right 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 Fort Worth Meacham International Airport Ground Lease Agreement Lease Site 38N Page 8 of 19 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. If any lease between Lessor and the United States Government executed pursuant to this Section 10.4 directly causes a Limitation for a period of less than seven (7) calendar days, this Lease shall continue in full force and effect. If the Limitation lasts more than seven (7) calendar days, Lessee and Lessor shall negotiate in good faith to resolve or mitigate the effect of the Limitation. If Lessee and Lessor are in good faith unable to resolve or mitigate the effect of the Limitation, and the Limitation lasts between seven (7) and one hundred eighty (180) days, then for such period (1) Lessee may suspend the payment of any rent due hereunder, but only if Lessee first provides a written statement to Lessor that the Limitation has directly caused Lessee a material loss in medical transports; (ii) subject to ordinary wear and tear, Lessor shall maintain and preserve the Premises and its improvements in the same condition as they existed on the date such Limitation commenced; and (iii) the term of this Lease shall be extended, at Lessee's option, for a period equal to the duration of such Limitation. If the Limitation lasts more than one hundred eighty (180) days, then (i) Lessor and Lessee may, but shall not be required to, (a) further adjust the payment of rent and other fees or charges, (b) renegotiate maintenance responsibilities and (c) extend the term of this Lease, or (ii) Lessee may terminate this Lease upon thirty (30) days' written notice to Lessor. 10.5. 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. 10.6. Provided Lessee's intended use of the Premises is not unreasonably impaired, Lessee's rights hereunder shall be subject to all existing and future utility and drainage easements and rights -of -way granted by Lessor for the installation, maintenance, inspection, repair or removal of facilities owned or operated by electric, gas, water, sewer, communication or other utility companies. Lessee's rights shall additionally be subject to all rights granted by any ordinance or statute which allows utility companies to use publicly - owned property for the provision of utility services. 10.7 Lessor agrees Lessee shall have the right of ingress and egress to and from the leased premises by means of roadways for automobiles and taxiways for aircraft including access during the construction phase of airport improvements and the Mandatory Improvements, unless otherwise agreed to in writing by both parties. Such rights shall be suitable for Lessee's use and consistent with the rules and regulations with respect to the occupancy and use of airport premises as adopted from time to time by the City of Fort Worth and by the Federal Aviation Administration or any other state, federal or local Fort Worth Meacham International Airport Ground Lease Agreement Lease Site 38N Page 9 of 19 authority. Lessor agrees to complete construction of the access road and taxilane shown on Exhibit `B" on or before October 15th or Lessee's Occupancy Date, whichever is later. If Lessor fails to complete construction of the access road and taxilane on or before this date, Lessor shall provide alternative ingress and egress to and from an alternate aircraft parking location and the airfield as well as from the Premises and North Main Street which is suitable for Lessee's use until the access road and taxilane are complete. ll. INSURANCE. 11.1. Types 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 in this Section 11, naming the City of Fort Worth as an additional insured and covering all risks related to the leasing, use, occupancy, maintenance, existence or location of the Premises. Lessee shall obtain the following insurance coverage I the limits specified herein. Fire and Extended Coverage on all improvements at full replacement cost limit; and • Commercial General Liability: $1,000,000 per occurrence, including products and completed operations; and • Automobile Liability: $1,000,000 per accident, including, but not limited to, coverage on any automobile used in Lessee's operations on the Premises. In addition, Lessee shall be responsible for all insurance to construction, improvements, modifications or renovations to the Premises and for personal property of its own or in its care, custody or control. 11.2. Adjustments to Required Coverage and Limits. Insurance requirements, including additional types of coverage and increased limits on existing coverages, are subject to change at Lessor's option and as necessary to cover Lessee's and any Sublessees' operations at the Airport. Lessee will accordingly comply with such new requirements within thirty (30) days following notice to Lessee. Fort Worth Meacham International Airport Ground Lease Agreement Lease Site 38N Page 10 of 19 11.3. Certificates. As a condition precedent to the effectiveness of this Lease, Lessee shall furnish Lessor with appropriate certificates of insurance signed by the respective insurance companies 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, at Lessor's request, provide Lessor with evidence 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, non - renewal 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 respondleat 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. LESSEE HEREBYASSUMESALL LIABILITYAND RESPONSIBILITY FOR PROPERTY LOSS, PROPERTY DAMAGE AND/OR PERSONAL INJURY OF ANY KIND, INCLUDING DEATH, TO ANY AND ALL PERSONS, OF ANY KIND OR CHARACTER, WHETHER REAL OR ASSERTED, ARISING OUT OF OR IN CONNECTION WITH ITS USE OF OR OPERATIONS ON THE AIRPORT UNDER THIS LEASE OR WITH THE LEASING, MAINTENANCE, USE, OCCUPANCY, EXISTENCE OR LOCATION OF THE PREMISES OR ANY IMPROVEMENTS THEREON, EXCEPT TO THE EXTENT CAUSED BY THE GROSS NEGLIGENCE OR INTENTIONAL MISCONDUCT OF LESSOR, ITS OFFICERS, AGENTS, SERVANTS OR EMPLOYEES. Fort Worth Meacham International Airport Ground Lease Agreement Lease Site 38N Page I 1 of 19 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 ANY RESULTING 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, LEASING, MAINTENANCE, OCCUPANCY, EXISTENCE OR LOCATION OF THE PREMISES OR ANY IMPROVEMENTS THEREON, EXCEPT TO THE EXTENT CAUSED BY THE GROSS NEGLIGENCE OR INTENTIONAL MISCONDUCT OF LESSOR, ITS OFFICERS AGENTS„ SERVANTS OR EMPLOYEES. LESSEEASSUMESALL RESPONSIBILITYANDAGREES TO PAYLESSOR FOR ANY AND ALL INJURIES OR DAMAGES TO AIRPORT PROPERTY, THE PREMISES OR ANY IMPROVEMENTS THEREON WHICHARISE OUT OF OR IN CONNECTION WITH ANY AND ALL ACTS OR OMISSIONS OF LESSEE, ITS OFFICERS, AGENTS, EMPLOYEES, CONTRACTORS, SUBCONTRACTORS, LICENSEES OR INVITEES, EXCEPT TO THE EXTENT CAUSED BY THE GROSS NEGLIGENCE OR INTENTIONAL MISCONDUCT OF LESSOR, ITS OFFICERS, AGENTS, SERVANTS OR EMPLOYEES. LESSOR DOES NOT GUARANTEE POLICE PROTECTION TO LESSEE, ANY SUBLESSEES OR THEIR PROPERTY. LESSOR IS OBLIGATED ONLY TO PROVIDE SECURITY ADEQUATE TO MAINTAIN LESSOR'S CERTIFICATION UNDER FAA REGULATIONS. LESSEE SHALL COMPLY WITH ALL APPLICABLE REGULATIONS OF THE FAA RELATING TO AIRPORT SECURITY. LESSEE SHALL PAY ALL FINES IMPOSED BY THE FAA ON LESSOR OR LESSEE RESULTING FROM LESSEE'S OR ANY SUBLESSEES' FAILURE TO COMPLY WITH SUCH FAA REGULATIONS OR TO PREVENT UNAUTHORIZED PERSONS OR PARTIES FROM THEIR OBTAINING ACCESS TO THE AIR OPERATIONSAREA OF THE AIRPORT FROM THE PREMISES. 14. TERMINATION. In addition to termination rights contained elsewhere in this Lease, Lessor shall have the right to terminate this Lease as follows: 14.I. Failure by Lessee to Pay Rent, Fees or Other Charges. If Lessee fails to pay any rent, fees or other charges due under this Lease, Lessor shall deliver to Lessee a written invoice and notice to pay the invoice within ten (10) calendar days. If Lessee fails to pay the balance outstanding within such time, Lessor shall have the right to terminate this Lease immediately. Fort Worth Meacham International Airport Ground Lease Agreement Lease Site 38N Page 12 of 19 14.2. Breach or Default by Lessee. If Lessee commits any breach or default, other than Lessee's failure to pay rent, Lessor shall deliver written notice to Lessee specifying the nature of such breach or default. Lessee shall have thirty (30) calendar days following such written notice to cure, adjust or correct the problem to the standard existing prior to the breach. However, if Lessee cannot, with due diligence, cure a default prior to the expiration of the 30 days from the date of Lessor's notice, but Lessee commences to cure such default within the 30 days after the date of Lessor's notice, and proceeds diligently to do all the work required to cure such default, the Lessee shall not be in default under this Lease. If Lessee fails to cure the breach or default within such time period, Lessor shall have the right to terminate this Lease immediately. 14.3. Abandonment or Non -Use of the Premises. Lessee's abandonment or non-use of the Premises for any reason for more than six (6) consecutive calendar months shall constitute grounds for immediate termination of this Lease by Lessor. 14.4. Lessee's Financial Obligations to Lessor upon Termination, Breach or Default. If Lessor terminates this Lease for any non-payment of rent, fees or other charges or for any other breach or default as provided in Sections 14.1, 14.2 or 14.3 of this Lease, Lessee shall be liable for and shall pay to Lessor all rent due Lessor for the remainder of the term then in effect as well as all arrearages of rentals, fees and charges payable hereunder. In no event shall a reentry onto or reletting of the Premises by Lessor be construed as an election by Lessor to forfeit any of its rights under this Lease. 14.5. Rights of Lessor Upon Termination or Expiration. Upon termination or expiration of this Lease, title to all improvements on the Premises, including the Mandatory Improvements and any Discretionary Improvements, and all fixtures and other items attached to any structure on the Premises shall pass to Lessor. In addition, all rights, powers and privileges granted to Lessee hereunder shall cease and Lessee shall vacate the Premises. Within twenty (20) days following the effective date of termination or expiration, Lessee shall remove from the Premises all trade fixtures, tools, machinery, equipment, materials and supplies placed on the Premises by Lessee pursuant to this Lease. After such time, Lessor shall have the right to take full possession of the Premises, by force if necessary, and to remove any and all parties and property remaining on any part of the Premises. 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 this Lease or any act incident to Lessor's assertion of its right to terminate or Lessor's exercise of any rights granted hereunder. Fort Worth Meacham International Airport Ground Lease Agreement Lease Site 38N Page 13 of 19 15. NOTICES. Notices required pursuant to the provisions of this Lease shall be conclusively determined to have been delivered when (i) hand -delivered to the other parry, its agents, employees, servants or representatives, or (ii) deposited in the United States Mail, postage prepaid, addressed as follows: To LESSOR: For Rent: City of Fort Worth Aviation Department 4201 N. Main St., Suite 200 Fort Worth, Texas 76106 To LESSEE: Cook Children's Medical Center ATTN: Real Estate Department 801 7th Avenue Fort Worth, Texas 76104 16. ASSIGNMENT AND SUBLETTING. 16.1. In General. For All Other Matters: Aviation Department Fort Worth Meacham International Airport 4201 N. Main St., Suite 200 Fort Worth, Texas 76106 Lessee shall have the right to sublease portions of the Premises as provided by and in accordance with Section 5 of this Lease. Otherwise, Lessee shall not assign, sell, convey, sublease or transfer the entirety of its rights, privileges, duties or interests granted by this Lease without the advance written consent of Lessor. Conditions of Approved Assignments and Subleases. If Lessor consents to any assignment or sublease, all terms, covenants and agreements set forth in this Lease shall apply to the assignee or sublessee, and such assignee or sublessee shall be bound by the terms and conditions of this Lease the same as if it had originally executed this Lease. The failure or refusal of Lessor to approve a requested assignment or sublease shall not relieve Lessee of its obligations hereunder, including payment of rentals, fees and charges. Fort Worth Meacham International Airport Ground Lease Agreement Lease Site 38N Page 14 of 19 17. LIENS BY LESSEE. Lessee acknowledges that it has no authority to engage in any act or to malce 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 lien at any time is filed against the Premises, Lessee shall, at its sole cost and expense, cause the same to be discharged of record or bonded around within 90 days after the date of filing of such lien. If Lessee fails to discharge the lien or bond around it, within said 90 days, Lessor may terminate the Lease upon 30 days written notice. 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. 18. 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. 19. 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 Lessor; all rules and regulations established by the Director; and all rules and regulations adopted by the City Council pertaining to the conduct required at airports owned and operated by the City, including the Minimum Standards for Fixed Base Operators and Other Airport Tenants, a public document dated June 16, 1992, on file in Lessor's City Secretary's Office and incorporated herein as part of this Lease for all purposes, 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. 20. 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, transgender, gender identity or gender expression. Lessee further agrees for itself, its Fort Worth Meacham International Airport Ground Lease Agreement Lease Site 38N Page 15 of 19 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 aIterations to the Premises on grounds of race, color, national origin, religion, handicap, sex, sexual orientation, transgender, gender identity or gender expression. Lessee agrees to furnish 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. 21. LICENSES AND PERMITS. Lessee shall, at its sole expense, obtain and keep in effect all licenses and permits necessary for the operation of its operations at the Airport. 22. GOVERNMENTAL POWERS. It is understood and agreed that by execution of this Lease, Lessor does not waive or surrender any of its governmental powers. 23. 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. 24. VENUE AND JURISDICTION. If any action, whether real or asserted, at law or in equity, arises on the basis of any provision of this Lease or of Lessee's operations on the Premises, venue for such action shall lie in state courts located 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. 25. ATTORNEYS' FEES. In the event there should be a breach or default under any provision of this Lease and either party 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. Fort Worth Meacham International Airport Ground Lease Agreement Lease Site 38N Page 16 of 19 26. 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. 27. 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, transportation problems and/or any other cause beyond the reasonable control of Lessor or Lessee. 28. 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. 29. ENTIRETX OF AGREEMENT. This written instrument, including any documents attached hereto or 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. [Signature Pages Follow] Fort Worth Meacham International Airport Ground Lease Agreement Lease Site 38N Page 17 of 19 IN WITNESS WHEREOF, the parties hereto have executed this Agreement in multiples on this the Stay of I�Y1e,,� c, , , 20LD�. CITY OF FORT WORTH: By: Fernando Costa Assistant City Manager Date: !y;@K �D T 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 20�a . ,•°g�'•"'Y P"�%; EVONIA DANIELS ��* `- MY COMMISSION EXPIRES July 10, 2013 APPROVED AS TO FORM AND LEGALITY: By:U Charlene Sanders Assistant City Attorney M&c: Fort Worth Meacham International Airport Ground Lease Agreement Lease Site 38N Page 18 of 19 otary Public in and for the State of Texas ATTEST: By: �,�ty ac��Gta�y T COOK CffiLDREN'S MEDICAL CENTER: By; 164 Oe u� By: George Be Montague Vice President -Real Estate Date: .2 t 0 STATE OF TEXAS § COUNTY OF TARRANT § wW��W BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared George B. Montague, 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 Cook "hildren's Medical Center and that he executed the same as the act of Cook Children's Medical Center for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this ��� day 20,L6. Notary Public in and`for the State of Texas Fort Worth Meacham International Airport Ground Lease Agreement Lease Site 38N Page 19 of 19 All F t fi A o F a� z � � a0 w w zwao�o s 9 m w ,.a vwivo a CS co FaAz S € .Z. 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LINE p,RFj.) w B IL t� ¢� a (O�ECT FREEwarm < w 'raaa�-¢z 'eaa1 a � F O.FA ^I `ol N vi (Og,IECT FREE AREA) CE RUNWAY 3�6` — W U Z r N D N1 fn UU � � a o fD l m �_ 4 •N W > d F > 1 F E+ m M \ 0 z � z Z z 3 w < ri w m w o Z0 U Z � N v- od Q y Q �y ` a a Ex iblt "A" " Being a parcel of land out of Lot A-1, Block 1, Meacham Airport Addition, according to plat recorded in Cabinet A, Slide 2446, Plat Records of Tarrant County, Texas, and being more particularly described by metes and bounds as follows: BEGINNING at a 5/8" iron rod set with a red plastic cap stamped "CITY OF FT. WORTH SURVEY DIVISION" for the southeast corner of herein described parcel, all 5/8" irons set being so capped unless otherwise noted hereon, from which a 5/8" iron rod found with a red plastic cap stamped "CITY OF FT. WORTH SURVEY SECTION" for the most southerly southwest corner of Westgrove Asset Management Lease Site according to City Secretary Contract No. 33517 bears: South 07 degrees 07 minutes 33 seconds East, 34.98 feet; THENCE: South 81 degrees 13 minutes 18 seconds West, 490.75 feet to a 5/8" iron rod set for the southwest corner of the herein described parcel; THENCE: North 08 degrees 45 minutes 49 seconds West, 249.0 feet to a 1/2" iron rod found for the northwest corner of the herein described parcel from which a 1/2" iron rod found for the westerly most southwest corner of said Westgrove Asset Management Lease bears, South 81 degrees 20 minutes 40 seconds West, 111.07 feet; THENCE: North 81 degrees 18 minutes 17 seconds East, 126.18 feet to a 60d Nail found at an angle point; THENCE: South 64 degrees 46 minutes 30 seconds East, 58.30 feet to a 60d Nail found at an angle point; THENCE: North 88 degrees 34 minutes 55 seconds East, 28.20 feet to 60d Nail found at an angle point; THENCE: North 81 degrees 13 minutes 18 seconds East, 294.34 feet to a mark "+" cut in concrete for the northeast corner of the herein described parcel; TRANSPORTATION AND PUBLIC WORKS DEPARTMENT SURVEYING SERVICES THE CITY OF FORT WORTH + 8851 Camp Bowie Blvd West * FORT WORTH, TEXAs 76116 817 392-7925 * Fax 817-3924895 Exhibit "A" THENCE: South 07 degrees 07 minutes 33 seconds East, 212.71 feet to the Place of Beginning, and containing some 2.538 acres (110,584 square feet) of land, more or less. Surveyed on the ground in January and February of 2010. Basis %J Bearings: City of Fort Worth Integrated G.P.S. Network System, N.A.D. 83, North Central Texas Zone. Distances are ground measurements. In accordance with the Texas Board of Professional Land Surveying, General Rules of Procedures and Practices, 663.19(9), This "report" consists of the hereon real property description, and a Map of Survey being attached herewith. 467310D01 HKHSRC.doc is `m� l�, g 1 HANS X , HANSEN TRANSPORTATION AND PUBLIC WORKS DEPARTMENT SURVEYING ,SERVICES THE CITY OF FORT WORTH * 8851 Camp Bowie Blvd West * FORT WORTH, TEXAS 76116 817 3924925 FAx 817-392-7895 M&C Review Page 1 of 2 afficiai site of tine City of Fort �'�+o€ih, Texas COUNCIL ACTION: Approved on 3/23/2010 DATE: 3/23/2010 REFERENCE NO.: C-24144 LOG NAME: 55FTW COOK CHILDREN'S CODE: C TYPE: CONSENT HEARING: NO SUBJECT: Authorize the Execution of a Ground Lease Agreement with Mandatory Improvements with Cook Children's Medical Center for Construction of a Hangar with Office Space, Parking Lot and Parking Ramp at Fort Worth Meacham International Airport (COUNCIL DISTRICT 2) RECOMMENDATION: It is recommended that the City Council authorize the City Manager to execute a Ground Lease Agreement with Mandatory Improvements with Cook Children's Medical Center for 110,584 square feet of land for the construction of a hangar with office space, parking lot and parking ramp at Fort Worth Meacham International Airport. DISCUSSION: Cook Children's Medical Center proposes to lease 110,584 square feet at Fort Worth Meacham International Airport to construct a hangar with office space, parking lot and parking ramp, identified as Lease Site 38N. The facility will be used as a transportation center for Cook Children's Medical Center. The facility will house one fixed and two rotor wing aircraft ambulances, ground ambulances and 24 hour a day staffing. The final design will be subject to Federal Aviation Administration (FAA) review and approval. The initial square footage rate of the ground lease will be $0.27 per square foot. Based on the square footage of the proposed development, this lease will generate estimated revenue of $29,857.68 per year or $2,488.14 per month. Payment of rent for the lease site will commence upon issuance of the Certificate of Occupancy for the proposed construction set forth above. The lease will provide for a thirty year term with two five year options to renew. The initial term of the lease will commence upon the date of execution. Rental rates shall be as described in the Schedule of Rates and Charges in effect at that time. 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 established City and Aviation Department policies. The property is located in COUNCIL DISTRICT 2. FISCAL INFORMATION/CERTIFICATION: The Financial Management Services Director certifies that the Aviation Department is responsible for the collection and deposit of funds due to the City. http://apps.cfwnet.org/council�acket/mc review.asp?ID=13230&councildate=3/23/2010 3/30/2010 M&C Review Page 2 of 2 TO Fund/Account/Centers PE40 491052 0551101 $29,857.68 Submitted for City Manager's Office bv: Originating Department Head: Additional Information Contact: ATTACHMENTS FROM Fund/Account/Centers Fernando Costa (6122) Kent Penney (5403) Jonnie Huitt (5409) http://apps.cfwnet.org/council�acket/mc review.asp?ID=13230&councildate=3/23/2010 3/30/2010