HomeMy WebLinkAboutContract 43601CITY�
SECRETARY
CONTRACT NO. G
FORT WORTH MEACHAM INTERNATIONAL AIRPORT
GROUND LEASE AGREEMENT
LEASE SITE 40S
3524 LINCOLN AVENUE
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, acting by and through Fernando Costa, its duly authorized
Assistant City Manager, and BURNETT AVIATION CO., INC. ("Lessee"), a Texas corporation,
acting by and through V. Neils Agather, its duly authorized President.
RECITALS:
WHEREAS, on or about January 4, 1983, Burnett Aviation Co., Inc. entered into City
Secretary Contract ("CSC") No. 12887, a Fixed Base Operator Lease for ground space known as
Lease Sites 40S and 43S, consisting of a total of 236,778 square feet of ground space ("Previous
Lease"); and
WHEREAS, the Previous Lease contained a thirty (30) year lease term ending January 3,
2013; and
WHEREAS, Lessee has requested to divide Lease Sites 40S and 43S into three individual
lease tracts to be known as Lease Sites 39S, 40S and 41 S (formerly 43S); and
WHEREAS, Lessor has agreed to the division of the lease tracts as it will provide for
continued economic growth and development on the west side of the Fort Worth Meacham
International Airport, in Fort Worth, Tarrant County, Texas (the "Airport"); and
WHEREAS, Lessee has requested, and Lessor has agreed, to execute individual ground
lease agreements for each lease site.
•
AGREEMENT:
In consideration of the mutual covenants, promises and obligations contained herein, the
parties agree as follows:
1. PROPERTY LEASED.
Lessor hereby demises to Lessee 111,194 square feet of ground space ("Ground"),
including a 14,400 square foot hangar ("Hangar") at the Airport, identified as Lease Site
40S, also known as 3524 Lincoln Avenue, ("Premises"), as shown in Exhibit "A",
attached hereto and hereby made a part of this Lease for all purposes.
Bumett Aviation — Lease Site 40S
Ground Lease
Fort Worth Meacham Airport
Page 1 of 20
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
09-17-12 PO4:30 IN
2. TERM OF LEASE.
2.1. Initial Term.
The initial term of the Lease ("Initial Term") shall commence at 12:00 a m on
January 4, 2013 ("Effective Date"), and expire at 11:59 p.m. on January 3, 2023,
unless terminated earlier as provided herein
2.2 Renewals.
If Lessee perfoinis and abides by all provisions and conditions of this Lease, upon
expiration of the Initial Term of this Lease, Lessee shall have three (3) options to
renew for an additional ten (10) years each (each a "Renewal Term") In order to
exercise an option to renew, Lessee shall notify Lessor in writing of its desire to
renew this Lease no less than ninety (90) days and no more than one hundred eighty
(180) days prior to the expiration of the Initial Term or the Renewal Term then in
effect, as applicable.
2.3. Holdover.
If Lessee holds over after the expiration of the Initial Tem , this action will create a
month -to -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. RENT.
3.1. Ground Rate.
Lessee shall commence the payment of rent for the Ground on the Effective Date.
Lessee hereby promises and agrees to pay Lessor, as annual rent for the Ground,
Thirty Thousand Twenty -Two Dollars and Thirty -Eight Cents ($30,022.38), at a rate
of Twenty -Seven Cents ($0.27) per square foot, payable in equal monthly
installments of Two Thousand Five Hundred One Dollars and Eighty -Seven Cents
($2,501.87).
3.2. Rate Adjustments.
3.2.1. Consumer Price Index Adjustments.
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, 2013, and on October 1st of any subsequent year during
Burnett Aviation — Lease Site 40S
Ground Lease
Fort Worth Meacham Airport
Page 2 of 20
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 (the "Annual Rent Adjustment")•
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.
3.2.2. Five -Year Adjustments. Ground Rate.
In addition to the Annual Rent Adjustments, on January 4, 2018, and every
fifth (5th) year thereafter for the remainder of the term of the Lease, the
Ground rental rate shall automatically be adjusted to equal the then -current
rates prescribed by the 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 Ground.
3.2.3. Ten -Year Adiustments. Hangar Rate.
In addition to the Annual Rent Adjustments, starting January 4, 2023, for the
first Renewal Term, a Hangar rate commensurate with the appraised Fair
Market Value shall be added, based upon the 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 Hangar
Every tenth (10th) year thereafter (i.e., for each additional Renewal Term of
the Lease), the Hangar rate shall automatically be adjusted to equal the then
appraised Fair Market Value, as prescribed by the 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 Hangar.
3.3. 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 business 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 termmation
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.
Burnett Aviation — Lease Site 40S
Ground Lease
Fort worth Meacham Airport
Page 3 of 20
4. CONSTRUCTION AND IMPROVEMENTS.
4.1. Discretionary Improvements.
Lessee may, at its sole discretion, perform modifications, renovations,
improvements or other construction work on or to the Premises (collectively,
"Improvements") so long as it first submits all plans, specifications and estimates
for the costs of the proposed work in wnting and also requests and receives in
writing approval from the Director of Aviation or authorized representative
("Director ') Lessor agrees to respond in writing to Lessee s requests for approval
within thirty (30) calendar days of receipt of such requests Lessee covenants and
agrees that it shall fully comply with all provisions of this Section 4 in the
undertaking of any such Improvements. Lessor shall take full title to any
Improvements on the Premises upon the expiration or earlier termination of this
Lease, provided that trade fixtures shall remain the pioperty of Lessee and may be
removed so long as Lessee repairs any damage caused thereby.
4.2. Process for Approval of Plans.
Lessee's plans for Improvements shall confoani to the Airport s architectural
standards and must also receive written approval from the City's Departments of
Planning and Development 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 piesented for
review.
4.3. Documents.
Lessee shall supply the Director with comprehensive sets of documentation relative
to any Improvement, 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.
4.4. Bonds Required of Lessee.
Prior to the commencement of any Improvement, 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 (i) satisfactory compliance by Lessee with all
applicable requirements, terms and conditions of this Lease, including, but not
limited to, the satisfactory completion of the respective Improvements, and (ii) full
payments to all persons, firms, corporations or other entities with whom Lessee has
a direct relationship for the construction of such Improvements.
Bumett Aviation — Lease Site 40S
Ground Lease
Fort Worth Meacham Airport
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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 125% of the full amount
of each construction contract or project 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 Fedeial 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 Improvements, or if claims are filed by third parties on grounds relating
to such Improvements, Lessor shall be entitled to draw down the full amount of
Lessee's cash deposit or certificate of deposit and apply the proceeds to complete
the Improvements or satisfy the claims, provided that any balance shall be remitted
to Lessee.
4.5. Bonds Required of Lessee's Contractors.
Prior to the commencement of any Improvement, Lessee's respective contractor
shall execute and deliver to Lessee surety perfounance and payment bonds in
accordance with the Texas Government Code Chapter 2253, as amended, to cover
the costs of all work performed under such contractor's contract for such
Improvements Lessee shall provide Lessor with copies of such bonds prior to the
commencement of such Improvements. The bonds shall guarantee (i) the faithful
performance and completion of all construction work in accordance with the final
plans and specifications as approved by Lessor and (ii) full payment for all wages
for labor and services and of all bills for materials, supplies and equipment used in
the perfounance of the construction contract. Such bonds shall name both Lessor
and Lessee as dual obligees. If Lessee serves as its own contractor, Section 4 4 shall
apply.
4.6. Releases by Lessor Upon Completion of Construction Work.
Lessor will allow Lessee a dollar -for -dollar reimbursement from its cash deposit
account or reduction of its claim upon Lessor's certificate of deposit upon (i), 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
5. USE OF PREMISES.
Lessee hereby agrees to use the Premises solely for aviation -related purposes only and
strictly m accordance with the terms and conditions of this Lease Lessee shall have the
right to sublease portions of the Premises, including mdividual hangars, to various third
Burnett Aviation — Lease Site 40S
Ground Lease
Fort Worth Meacham Airport
Page 5 of 20
parties ("Sublessees") for aviation -related purposes only under terms and conditions
acceptable to and determined by Lessee, provided that all such arrangements shall be in
writing and approved in advance by Lessor. 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 tenus 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 limn 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 matenal 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.
Lessor reserves the right to require Lessee to provide Lessor with a written annual report, in
a foul' acceptable to the Director, that reflects Lessee's rental rates for any subleases of the
Premises in the immediately preceding calendar year. If required, such written annual
report shall be provided to Lessor within thirty (30) days following the end of the 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 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 accordance with
Lessee's current basis of accounting or, if Lessee changes such basis, in a manner
satisfactory to Lessor's Internal Auditor and at a location within the City of Fort Worth.
Lessee's basis of accounting will be deemed to be to the satisfaction of Lessor's Internal
Auditor if it is in compliance with industry standards or generally accepted accounting
principles. Upon Lessor's request and following reasonable advance notice, Lessee will
make such books and records available for review by Lessor during Lessee's noirrral
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-
Bumett Aviation — Lease Site 40S
Ground Lease
Fort Worth Meacham Airport
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operated equipment which may be used on the Premises shall fully comply with Lessor's
Mechanical, Electrical, Plumbing, Buildmg and Fire Codes ("Codes"), as they exist or may
hereafter be amended.
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, reasonable wear and tear excepted 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 or replacements necessary to prevent the
deterioration in condition or value of the Premises, including, but not limited to, the
maintenance of and repairs to all hangars and other structures, doors, windows and
roofs, and all fixtures, equipment, hangar modifications and surrounding 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 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 four (4) hours' notice
prior to any inspection.
Bumett Aviation — Lease Site 40S
Ground Lease
Fort Worth Meacham Airport
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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 m 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
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 perfonu 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 or may hereafter be amended 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 exterior of the Hangar or Premises related to Lessee's business
operations. Such signs, however, must be in keeping with the size, color, location and
Bumett Aviaton — Lease Site 40S
Ground Lease
Fort Worth Meacham Airport
Page 8 of 20
manner of display of other signs at the Airport. Lessee shall maintain all such signs in a
safe, neat, sightly and physically good condition.
10. RIGHTS AND RESERVATIONS OF LESSOR.
Lessor hereby retains the following rights and reservations:
10.1. 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. 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
adequate proof to Lessor that the Limitation has directly caused Lessee a material
loss in revenue; (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 (ri) Lessee may terminate this Lease upon thirty (30) days'
written notice to Lessor
Bumett Aviation — J rase Site 40S
Ground Lease
Fort Worth Meacham Airport
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10.4. During any war or national emergency, Lessor shall have the right to lease any part
of the Airport, includmg 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. 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 (i) Lessee may suspend the
payment of any rent due hereunder, but only if Lessee first provides adequate proof
to Lessor that the Limitation has directly caused Lessee a material loss in revenue•
(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. 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
Premises by means of roadways for automobiles and taxiways for aircraft including
access during the construction phase of airport improvements, unless otherwise
agreed to in writing by both parties. Such rights shall be consistent with the rules.
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Ground Lease
Fort Worth Meacham Airport
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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 authority.
11. INSURANCE.
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 specified to be
maintained by a commercial tenant 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 construction, improvements,
modifications or renovations to the Premises and for personal property of its own or in its
care, custody or control.
11.1. 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.
11.2. Certificates.
As a condition precedent to the effectiveness of this Lease, Lessee shall furnish
Lessor with appropriate certificates of msurance signed by the respecti\ e 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.
11.3. Additional Requirements.
Lessee shall maintain its insurance with underwriters authorized to do business in
the State of Texas. The policy or policies of msurance 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.
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Ground Lease
Fort Worth Meacham Airport
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Lessee shall be responsible for notifying Lessor of any change to its insurance
coverage that amends or alters the coverage required by this Lease.
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 respond eat 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 HEREBY ASSUMES ALL LIABILITY AND 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 THE AIRPORT UNDER THIS LEASE OR WITH
THE LEASING, MAINTENANCE, USE, OCCUPANCY, EXISTENCE OR
LOCATION OF THE PREMISES, EXCEPT TO THE EXTENT CAUSED BY THE
NEGLIGENCE OR INTENTIONAL MISCONDUCT OF LESSOR, ITS OFFICERS,
AGENTS, SERVANTS OR EMPLOYEES.
LESSEE COVENANTS AND AGREES TO, AND DOES TO THE EXTENT
ALLOWED BYLAW, WITHOUT WAIVING ANY DEFENSES PROVIDED BYLAW,
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
LESSEE'S USE OF THE AIRPORT UNDER THIS LEASE OR WITH THE USE,
LEASING, MAINTENANCE, OCCUPANCY, EXISTENCE OR LOCATION OF THE
PREMISES, EXCEPT TO THE EXTENT CAUSED BY THE NEGLIGENCE OR
INTENTIONAL MISCONDUCT OF LESSOR, ITS OFFICERS, AGENTS,
SERVANTS OR EMPLOYEES.
LESSEE ASSUMES ALL RESPONSIBILITY AND AGREES TO PAY LESSOR FOR
ANY AND ALL INJURIES OR DAMAGES TO LESSOR'S PROPERTY WHICH
ARISE OUT OF OR IN CONNECTION WITHANYAND ALL ACTS OR OMISSIONS
Burnett Aviation — Lease Site 40S
Ground Lease
Fort Worth Meacham Airport
Page 12 of 20
OF LESSEE, ITS OFFICERS, AGENTS, EMPLOYEES, CONTRACTORS,
SUBCONTRACTORS, LICENSEES OR INVITEES, EXCEPT TO THE EXTENT
CAUSED BY THE 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
OPERATIONS AREA OF THE AIRPORT FROM THE PREMISES.
14. TERMP4ATION.
In addition to termination rights contained elsewhere in this Lease, Lessor shall have the
right to terminate this Lease as follows:
14.1. Failure by Lessee to Pay Rent. Fees or Other Charges.
If Lessee fails to pay any rent, fees or other charges when 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.
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 receipt of such written
notice to cure, adjust or correct the problem to the standard existing prior to the
breach If Lessee fails to cure the breach or default within such time period, Lessor
shall have the right to terminate this Lease immediately unless such breach or
default is not susceptible to cure within thirty (30) calendar days in which event
Lessee shall have such additional time to effect a cure as determined by Lessor.
14.3. Abandonment or Non -Use of the Premises.
Lessee's abandonment or non-use of the Premises for any reason for more than thirty
(30) consecutive calendar days shall constitute grounds for immediate termination
Bumett Aviation — Lease Site 40S
Ground Lease
Fort worth Meacham Airport
Page 13 of 20
15.
of this Lease by Lessor, unless such non-use is caused by Force Majeure, as set forth
in Section 27 below.
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 lent due Lessor for the
remainder of the tei>:u 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, 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 Lessoi, 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.
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 party at such address listed below,
or at such other address as the receiving party designates by proper notice to the sending
party, or (ii) three (3) days after it has been deposited in the United States Mail, postage
prepaid, addressed as follows:
To LESSOR:
City of Fort Worth
Aviation Department
4201 N Main St, Suite 200
Fort Worth, TX 76106
Bumett Aviation — Lease Site 40S
Ground Lease
Fort Worth Meacham Airport
Page 14 of 20
To LESSEE:
Burnett Aviation Co., Inc.
ATTN V. Neils Agather
801 Cherry Street, Unit 9, Suite 1500
Fort Worth, TX 76102
16. ASSIGNMENT AND SUBLETTING.
16.1. In General.
Lessee shall have the right to sublease portions of the Premises as provided by and
m 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.
16.2. Conditions of Auuroved 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.
17. 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 hen shall constitute a breach of this
Lease and Lessor may terminate this Lease upon thirty (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.
Burnett Aviation Lease Site 40S
Ground Lease
Fort Worth Meacham Airport
Page 15 of 20
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, as such laws, ordinances, rules and regulations exist or may
hereafter be amended or adopted If Lessor notifies Lessee in accordance with Section 15
above 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, disability, sex, sexual orientation, transgender,
gender identity or gender expression. 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, disability, 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.
Bumett Aviation — Lease Site 40S
Ground Lease
Fort Worth Meacham Airport
Page 16 of 20
23. NO WAIVER.
The failure of Lessor to insist upon the perfoinuance of any tenn 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 nght 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 Piemises, venue for such action
shall lie in state courts located in Tarrant County, Texas of 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.
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. ENTIRETY 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
Bumett Aviation — Lease Site 40S
Ground Lease
Fort Worth Meacham Airport
Page 17 of 20
contemporaneous oral or written agreement is hereby declared null and void to the extent in
conflict with any provisions of this Lease. The tenus and conditions of this Lease shall not
be amended unless agreed to in writmg by both parties and approved by the City Council of
Lessor.
[Signature Pages Follow]
Bumett Aviation — Lease Site 40S
Ground Lease
Fort Worth Meacham Airport
Page 18 of 20
IN WITNESS WHEREOF, the parties hereto have executed this Agreement in multiples
on this the/1,- day of 2012.
CITY OF FORT WORTH:
By: Ce.t.nai
Fernando Costa
Assistant City Manager
Date: .9/4f/ 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 1 day
, 2012.
••*�
. -
.,% \4;1
tinvrionk
EVONIA DANIELS
MY COMMISSION EXPIRES
July 10, 2013
APPROVED AS TO FORM
AND LEGALITY:
i
By:
Charlene Sanders
Assistant City Attorney
M&C:
Date:
7>vit
q/jiJja
Burnett Aviation — Lease Site 40S
Ground Lease
Fort Worth Meacham Airport
Page 19 of 20
froitelt6e
Notary Public in and for the State of Texas
ATTEST:
B
FFICIAL RECORD
CITY SEC r' n'ARY
FT. W RTh9TN
LESSEE: ATTEST:
BURNETT AVIATION CO., INC.
By:
V. Neils Agat
President
Date: / las(720 /Z
STATE OF TEXAS §
COUNTY OF At,2,A n
By:
BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on
this day personally appeared V. Neils Agather, 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
BURNETT AVIATION CO., INC. and that he executed the same as the act of BURNETT
AVIATION CO., INC. for the purposes and consideration therein expressed and in the capacity
therein stated.
_.
IS 0
he or
witillio-
GIVEN UNDER MY HAND AND SEAL OF OFFICE this / % day
40thvcfl , 2012.
JONNIE RENEE' HUITT
Notary Public, State of Texas
My Commission Expires
May 20, 2014
Bumett Aviation — Lease Site 40S
Ground Lease
Fort Worth Meacham Airport
Page 20 of 20
J
Notary
•
c in and for the State of Texas
Exhibit "A"
tr
Ic1
IC2
1 C3
•
RADIUS
1,215'
565'
565'
BLOCK 3
MEACHAM AIRPORT
CABINET A, SLIDE 2445
P, R•, T .C.,T•
21
92.30'
4r
LEASE 41S
1 /2`iRF
X= 2317785.68
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BEARS: 1I 3236'31 " E 0.39'
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41S
AREA: 2.126 ACRES (92,621 S.F.)+—
GRASS niEA
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CROSS "-PI
IN CONCRETE FOUND
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AREA 2.552 ACRES (111,194 S.F.)+-
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'cTiY OF FT. WORTH
SURVEY SECTION"
BLOCK 3
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MEACHAM AIRPORT
CABINET A, SLIDE 2445
P.R.,T.C.,T.
CURVE DATA
DELTA TOENT
T 25' 17" ,SO'
921'37" 48.25k
15' 26.15" 95.77`
L1— N 45' 13' 1 1 " W 42.07'
1
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1 (76' N 142?o9W I 2 `45' W I
DENOTES A 5/8" IRON ROD SET WITH A RED PLASTIC
CAP STAMPED "CITY OF FT. WORTH SURVEY DIVISION"
(C.M.)= CONTROL MONUMENT
GRASS AREA
5/81RF
"CITY OF Fr. WORTH
SURVEY DIVISION"
S 4548'38" W
69.85'
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SURVEY DIVISION"
(C.1.1.)
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AREA: 0.756 ACRES (33,042 S.F.)+--
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P.O.B.
LEASE 40S
MARK `X' CUT IN CONCRETE
x= 2318337.15
Ya 6970610.51
v
•
MAP OF SURVEY
SHOWING
MEACHAM AIRPORT LEASE PARCELS
39S, 40S AND 41S SITUATED IN
BLOCK 3, MEACHAM AIRPORT
ACCORDING TO PLAT RECORDED IN
CABINET A, SLIDE 2445,
PLAT RECORDS OF TARRANT COUNTY, TEXAS
GRASS AREA
BEARING BASE: CITY OF FORT WORTH INTEGRATED G.P.S.
NETWORK SYSTEM, N.A.D. 83, NORTH CENTRAL TEXAS ZONE.
DISTANCES ARE GROUND MEASUREMENTS.
60
0
60
120
180
i 47,05'
S 81'12i0" W
P.U.B.
LEASE 39S
3/4"1RF
X= 2318281.53
Y= 6979126.62
NOTE: In accordance with the Texos Board of Professional Land
Surveying, General Rules of Procedures and Practices, 663.18(C),
"Preliminary, this document shall not be recorded for any purpose."
Preliminary documents released from the surveyor's control which
include this text in place of the surveyor's signature need not comply
with the other minimum standards promulgated in this chapter.
GRAPHIC SCALE IN FEET SURVEYED ON THE GROUND IN MARCH AND APRIL OF 2012.
BLOCK 3
MEACHAM AIRPORT
CABINET A, SLIDE 2445
P.R.,T.C.,T.
• •
5/S'IRF
"CITY OF FT. WORTH
SURVEY MS !ON"
JOIN RINGER SURVEY
A-19,5
3/4'IRF
(C.M.)
Map Prepared by sterge A mum ass. fl'r10I6-w5)
FORT WORTH
T wmvortq n et f5(,joce"aks' Dept,
tirveymo
DATE 04-10-2012 sun, 1• n 601
DRAYN BY SRC nix ND. 467312401
Cyr a• reri Vr4! . Ts. Da llych mien tt. 70d2 Ft, i -TP0;
Exhibit "A"
FORT WORTH
REAL PERITY »ESC.R PTTN
POP
M ,AC AM AIRkr LEASE 4 eS
A parcel of land situated in Block 3, Meacham Airport, as recorded in Cabinet A, Slide 2445,
Plat Records of Tarrant County, Texas, and including a portion of that certain tract of land
known as Burnett Aviation according to Lease recorded in Volume 7439 Page 296, Deed
Records of Tarrant County, Texas, and being more particularly described by metes and bounds
as follows:
Beginning at a mark "X" cut in concrete at the northeast corner of herein described parcel, said corner
bears: South 08 degrees 35 mmutes 12 seconds East 183.44 feet from a 5/8" iron rod found with a red
plastic cap stamped "CITY OF FT. WORTH SURVEY DIVISION" at the northeast corner of said Burnett
Aviation Lease;
Thence: South 08 degrees 35 minutes 12 seconds East, 301.28 feet to a 5/8" iron rod found with a red
plastic cap stamped "CITY OF FT. WORTH SURVEY DIVISION' at the southeast corner of herein
described parcel;
Thence: South 81 degrees 22 minutes 32 seconds West, 257.70 feet to a 5/8" iron rod found with a red
plastic cap stamped ` CITY OF FT. WORTH SURVEY DIVISION" at the southwest comer of herein
described parcel on the monumented easterly right-of-way line of Lincoln Ave (60.0' right-of-way per
plat monumented as a 70.0' right-of-way);
Thence: with said monumented right-of-way line, North 45 degrees 13 minutes 11 seconds West, 278.18
feet to a 5/8 ' iron rod found with a red plastic cap stamped "CITY OF FT. WORTH SURVEY
SECTION" at the beginning of a curve having a radius of 565.0 feet;
Thence* with said curve to the right along said monumented right-of-way line through a central angle of
09 degrees 21 minutes 37 seconds, an arc length of 92.30 feet whose chord bears: North 40 degrees 33
minutes 41 seconds West, 92.20 feet to a 5/8" iron rod set with a red plastic cap stamped "CITY OF FT.
WORTH SURVEY DIVISION" at the end of said curve for the northwest comer of 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 817-392-7895
Exhibit "A"
Thence* departing said monumented right-of-way line, North 81 degrees 24 minutes 48 seconds East,
472.51 feet to the Place of Beginning, and containing some 2.552 acres (111,194 square feet of land),
more or less.
Surveyed on the ground in March and April of 2012.
Basis of Bearings: The City of Fort Worth Integrated G.P.S. Network System, N.A.D. 83, North Central
Texas Zone All distances are ground measurements Bearing base line as shown on Map of Survey.
Note: 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.
TRANSPORTATION AND PUBLIC WORKS DEPARTMENT
SURVEYING SERVICES
THE CITY OF FORT WORTH * 8851 Camp Bowie BIvd West * FORT WORTH, TEXAS 76116
817 392-7925 * Fax 817-392-7895
Exhibit "B"
City of Fort Worth
Aviation Insurance Requirements
-Category of Tenant'&or'
Operations Property Insurance General Liability
FBOs Yes
Flight Training *
Air Taxi
Specialized Com. Flight
Serv.
Aerial Applications
Aircraft Sales
Aircraft Rental
Airframe or Power Plant
Repair
Radio, Instrument or
•Propeller Repair
Multiple Services
Flying Clubs
Commercial Tenant
Commercial Tenant
Sublessee
Mo. - Mo. Airport Tenant;
sm. premises area,
infrequent access by
others (no aircraft)
Hangar Tenant
(private sm aircraft)
Fuel Facilities: Trucks
Fuel Facilities: Tank Farm
Concessionaire:
Restaurant
Concessionaire:
Rent -a -car
Concessionaire:
Retail Shop
I
Auto
nvironmerital "
Impairment
$ 3,000,000.00 $ 1,000,000.00 $ 1,000,000.00
$ 1,000,000.00 $
1,000,000.00
$ 1,000,000.00
1,000,000.00
1,000,000.00
$ 1,000,000.00
1,000,000.00 $
$ 1,000,000.00 $
$ 1,000,000.00 $
$ 1,000,000.00
$ 1,000,000.00
1,000,000.00
1,000,000.00
1,000,000.00
$ 1,000,000.00
* $ 1,000,000.00 $
* $ 1,000,000.00 $
* $ 1,000,000.00 $
No $ 500,000.00 I $
No
No
N/A
Yes
No
No
$ 300,000.00
No
N/A $
1,000,000.00 $
1,000,000.00 $
1,000,000.00 $
500,000.00
1,000,000.00
1,000,000.00
1,000,000.00
1,000,000.00
500,000.00
No
No
1,000,000.00 $
1,000,000.00 $
1,000,000.00
1,000,000.00
No
No
No
No
$ 1,000,000.00
No
No
No
No
No
No
No
No
No
No
1,000,000.00
1,000,000.00
No
No
No
Aircraft Liability
Hangarkeepers
Liability
N/A $ 3,000,000.00
Small: 1 M Large:
5M
Small: 1M Large:
5M
Small: 1 M Large:
5M
Small: 1M Large:
5M
Small: 1 M Large:
5M
Small: 1M Large:
5M
No
No
As Applicable
Small: 1M Large:
5M
As Applicable
As Applicable
No
$ 300.000
No
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
Liability coverage'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
No
No
No
No
$ 1,000,000.00
$ 1,000,000.00
$ 1,000,000.00
$ 1,000,000.00
As Applicable
N/A
No
No
No
No
No
No
No
No
aviationinsreg2001
•
City of Fort Worth, Texas
a or an ouncil ommunication
COUNCIL ACTION: Approved on 9/11/2012
DATE• Tuesday, September 11, 2012
LOG NAME: 55FTW BURNETT AVIATION
SUBJECT:
Authorize Execution of Three Ground Lease Agreements with Burnett Aviation Co., Inc., for Lease Sites
39S, 40S and 41S at Fort Worth Meacham International Airport (COUNCIL DISTRICT 2)
REFERENCE NO.: **C-25812
RECOMMENDATION.
It is recommended that the City Council authorize the execution of three Ground Lease Agreements with
Burnett Aviation Co., Inc., for Lease Sites 39S, 40S and 41S at Fort Worth Meacham International Airport.
DISCUSSION:
On December 2, 1982, (M&C C-6637) Burnett Aviation Co., Inc., (Burnett) entered into City Secretary
Contract (CSC) No. 12887, a Fixed Base Operator Lease Agreement for Ground Space known as Lease
Site 40S and 43S consisting of a total of 236,778 square feet of ground space of land on which a 14,400
and 22,950 square foot hangar, respectively, were constructed CSC No. 12887 contains a 30 year lease
term that will expire on January 3, 2013.
Upon the expiration of this lease, Burnett has requested to divide Lease Site 40S and 43S into three
individual lease tracts to be known as Lease Sites 39S, 40S and 41S (formerly 43S). The Aviation
Department has agreed to the division of the lease tract as it will provide for continued economic growth
and development on the west side of the Airport.
The lease Agreement for Lease Site 39S will require mandatory improvements as the site consists of
33,042 square feet of undeveloped ground space. In developing the site, Burnett proposes to construct a
6 500 square foot hangar on the site The lease will provide for a 30 year term with one option to renew for
an additional 10 years. The initial term of the lease will commence January 4, 2013 and will expire
January 3, 2043. In accordance with the current Schedule of Rates and Charges, this lease site will
generate revenue in the amount of $8,921.34 annually or in the amount of $743.45 monthly at a ground
rate of $0 27 per square foot.
The lease Agreements for 40S and 41S will be for sites already developed. Lease Site 40S will consist of
111,194 square feet of ground space with a 14 400 square foot hangar. Lease Site 41 S will consist of
92,621 square feet of ground space with a 22,950 square foot hangar. Each of these leases will provide
for a 10 year term with three options to renew for an additional 10 years each. The initial term of the
leases will commence January 4, 2013 and will expire January 3, 2023.
In accordance with the current Schedule of Rates and Charges, Lease Site 40S will generate revenue in
the amount of $30,022.38 annually or in the amount of $2,501 87 monthly at a ground rate of $0.27 per
square foot. Lease Site 413 will generate revenue in the amount of $25,007.67 annually or in the amount
of $2,083.97 monthly at a ground rate of $0.27 per square foot.
Lognaine: 55FTW BURNETT AVIATION Page 1 of 2
During the initial term for each lease, rental rates shall be subject to an increase every year to reflect the
.apward percentage change, if any, in the Consumer Price Index for the period since the last adjustment.
Rental rates, during the initial term, will also be subject to a ground rate adjustment every five years. The
ground rate will automatically be adjusted to equal the then current rates prescribed by the Schedule of
Rates and Charges.
In addition to the annual rent adjustments for Lease Sites 40S and 41S, starting January 4, 2023 for the
first renewal terms a hangar rate commensurate with the appraised Fair Market Value shall be added,
based on the 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 hangar. Every 10th year thereafter (i.e for each additional
renewal term of the lease), the hangar rate shall automatically be adjusted to equal the then appraised
Fair Market Value, as prescribed by the 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 hangar.
All Agreement terms will be in accordance with the City and Aviation Department policies.
The properties are 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.
FUND CENTERS:
TO Fund/Account/Centers
PE40 491052 0551101
CERTIFICATIONS:
Submitted for City Manaaer's Office bv:
Originating Department Head:
Additional Information Contact:
$631951.39
FROM Fund/Account/Centers
Fernando Costa (6122)
Bill Welstead (5402)
Jonnie Huitt (5409)
ATTACHMENTS
1. 55FTW BURNETT AVIATION Exhibit A.pdf (Public)
Logname: 55FTW BURNETT AVIATION Page 2 of 2