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HomeMy WebLinkAboutContract 55497;*_ _ -��`��. �,�, I ' S : �O � ti � �G�� CITY SECRETARY COI�TRACT li'O. J� i:�,� FORT WORTH 1ViEACHAM Il�TTERNAT�QNAL AIRPORT HA.IVGAR A1�D GROUND LEASE AGREEMEi�iT LEA�E SITE �4� This I-IAI�TGAR AI�TD GROiJND LEASE AGREElVIEl�TT {"Lease") is made and entered inta by and between the CITY QF FORT WORTH ("Lessor"), a harne rule municipai corporation arganized under tl�e laws af the State of Te�as and acting by and thraugh Fernando Co�ta, its duly authorized Assistant City Manager, and JOHN J. JANOVETZ ("Lessee"j, an individual. RECITALS: W�-lEREA�, Lessor arzd Texas Aviation Enginecring Company entered inio City Secretary Contract ("CSC") No. 1 i628, a ground lease agr�ement, for thE lease of certain areai property identified as Lease Site 54S ("Premises"), at For� VVorth Meacham rnternationa� Airport {"Airport'� (callectively the "Frevious Lease"). The Previous Lease comrnenced on Januaty 1, 2009 for a five-year term and allowed for a renewal at Lessee's option for one (1) additional tenn o#' �ve (5) years; WHEREA�, the Lessee exercised its final option to renew pursuant to CSC No. 39628 for the additio�al 5-year �e�iod which commenced on January 1, 2415 a�ad expired on December 31, 2020; WHEREAS, due to the fact that the Previous Lease contains no further aptions to renew and the Lessee is curr�ntly on a mon�-to�-month holdover, both the Lessee and Lessor have agreed to enter intv a New Hangar and Ground Lease Agreement tt�at will comme�zce on the April 1, 2021 {Effective Date} n�'the new Iease. AGREEMEI�T: In consideration of the mutual covenants, promises and obiiga�ions con�ined herein, the parties agree as follaws: 1. PROPERTY LEASED. Lessor hereby demises to Lessee 3,120 square feet of ground space, vc�ith a 2,60Q 6[jU�TE %Ot I7�rig�I' COIIS[TUCt�CI, at Fvrt Wortk Meacham In�emationai Aizpart ("Aarport") in Fort Worth, Tarrant Caunly, Texas, identifed as Lease Site SOS, also lfnown as 4100 Lincol� Avenue, {"Premises"), as shown in Exhibit "A", attached hereto and k�ereby made a part of this Lease for all purposes. — _ JOI-IN J..fAi+lpVEFZ, LSASE Si3'8 54S Hangar and Gmund I.ease Agrex.eneut f+ort Worth Meacham Airpori Fage 1 of 23 �������'�f�. �, `� � _� � ��14 u 0�'6�ti�14-e9e"6Y97j' ��� �����g i�� 2. TEltl� OF LEASE. 2.1. Initial Tcrm. The lnitial Term of this Lease �ha.11 conunence at 12:04 a.rn. on Apr�il 1, �021 ("E�fective Date") ar�d expire at 11:59 p.m. on 1l�iarch 31, 2031, unless ternlinated earlier as provided herein. �.� Renewal Term. If Lessee performs and abides by aIl provisio�ts and canditions of this I,ease, upon expirai�on af the Initial Term nf this Lease, Less�e shall have two (2) consecutive options #o renew this Lease for additional successive terms of five (5) years each (each a"Renewal Term"} ai a rental rate calculated 'zn a.ccordance with S�ction 3.1 af this Lease and on terms and conditions that may be prescribed by Lessor at the time. Lessee sha11 notify L.essar in vvriting of its intent to exercise a respective op�ian not less than ninety (90) nor mo�e than one hundred eighty (180} days prior to the expirataon o£ the term then in effect. If Lessee does noi exercise its option for a first Renewal Terna within the time frame pravided herein, Lessee sk�all automatically and simultaneously forfeit its second option to lease the Fremises for a second Renewal Term, and Lessee sha11 no longer have any i7ghts or interest in the Prezx�ises following the expiratian of the Tnitial Term. 2.3. Holdover. If Lessee holds over after the expira.�ian of the Initial Term or any Rener�val Tertn, this action will creat� a month tQ-month tenancy. In this event, for aud duu`ing the holc�over period, Lessee agr�es to pay all applicable rentals, fees and charges at the xates provided hy Lessor's �chedul� of Rates and Charges ar sirnilarly published schedule in effect at the time of the Holdover. The hangar rate will be adjusted to equal the then Fair Markei Value, as deiermined by Lessor's market analysis. In no case shall the hangar rate be less than the valu� assessed upon connpletion of a property appraisal campieted by a third patty vendar ihat has been approved and secured by Lessor. A ten percent (T 0%) incr�ase will be added ta the Fair Market Value rate until a new lease ag�reement is approved and executed. The haldover period wi11 not exceed six (6) months from the tirz�e the current lease agreernent expires. Upon the expiration of the holdover perioc�, the City may exercise atl legal rights and xemedies available, including bu€t noi limited ta eviction. 3. Rates and Adiustments The rental rates under this Lease are based on Lessar',s current published �chedule af Rates and Charges. Rental rates are subject to increase beginning October 1, 2021, and on October 1'� of any subsequent year during t.�e Initial Term, to reflect any upward change in the Consumer Price �dex for the Da11as/Fort V�vrth Metropolitan Area, as announced by t�e United Stat�s Department of Labar ar successar agency {i} for the first increase, since the Effective Date of #his Lease and (ii) for each subsequent 'vncrease, since the effective .TOHN J. JANOVETL LEASE SITE 50S Hangar and Ground Lease Agreement ForE Worth Meacham Airport Page 2 of 23 da#.� of the last increase; provided, hawever, tha# Lessee's rental rates sha�l not exceed the then-current rat�s pr�scribed 1�y Lessor's published Schedule of Rates and Charges for the type or types of prap�rty similar ta the type or types of property ihat co�prise the Premises. 3.1.1 Hangar Rate Lessee shail conr►nraence the payment of rent for the Hangar on the EfFective Date. Lessee hereby pramises and agrees to pay Lessor, as annual rent for the Hangar, Fourteen. Tk�ousand Three Hundred Dollars and 00/100 ($1.�,3Q0.QQ), at a rate of Fi�re Dollars and 50/100 ($5.50) per square faat, payable in equal mon�hly i�stallments of One Thousand O�e Hun.dred Ninety-One Dollars and b7/140 ($1,1.9�.b'�. 3.1.2 Ground Rate Lessee shall commence the payment af rent for �he Crronnd Space on the Effective Date. Lessee hereiay pramises and agrees to pay Lessor, as annual rent for the Ground Space, �ne Thausand Fa�xr Hur�dr�d Sixty-Six Dollars and 40/100 ($1,�466.40}, at a rate of Forty-Seven cents (�0.47) per square foot, payable in equal monthly installrnents of One Huzxdred Twenry-Two Dotlars and 20/100 ($122.2�). 3.�. �ve�Year Adiustments In adciition to the Annual Rent Adjustments, on Octa�ex 1, �0�6, and every fifth (5�') year fihereafter for the remainder af the Initia� Term (i.e. on 4ctober 1 st o�' 2U31, 2035, and 2041), rent shall a�tomaticalty be adjusted to equal the then-curreni rates prescribed by the �chedule of Rates and Charges for the iype or types of praperty ai the Airport similar to the type ox types of proper4y ihat comprise ti�e Premises. 3.3. Ten-Year Adiustmer►ts If nea�- the end of the texx {10) year Initial Term, a Rener�val Term has been requested by th� Lessee in accordance with sectior� 2.Z of this Agreement, City will have an appraisal performed by a qualified third-party appraiser to adjust th� Hangar Rate to equal the then Fair Market Va1ue, far this type af property at aiiports sirnilar to the type or lypes af praperty that comprise the Pre�nises. 3.� Pavment Dates �nd Late Fees. Mvnthly rent payments are due on ox before the first (lst) day of each month. Payments must be received during norn�.al business houts by the due date ai the locatian for Lessor's Aviation Department set forth in Section i5. Rent shall be considezed past due if L�ssar has noi received fi�ll payment by close af business the JOHN J. JANDVETZ, LEASE 51T� SOS Hangar and Ground Lease Agreement Fort Wrnth 3vIeacham Airport Page 3 of 23 tenth (l Oth) day of ihe �nonth for which payment is due. Without limiting Lessor's termination rights as provided by this Lease, Lessor wiIl assess a late penalty charge of ten percent (10%) per month on the entire baIance of any overdue rent that Lessee may accrue_ 4. C011TSTRUCTIOI�T AND Il1�PROVE�+IENTS. 4.1 Mandatory lm�roverrtents Lessee may not ini�iate any improvement on or to the Prernises unless it first sub�nits a�l plans, speei�cations and estimates for the costs of sarme to Lessor in writing, and also reques�s ar►d receives in wri�ing approval from Lessor's Director o£ Airport Systems or authorized representative ("Director"}. The improvements approved shall be referred ta as"1V�andatory Improvemen#s", and wouid be added as a separaie amendrnent to this Ageemenf if they �re approved by Lessor at fhat tirne. 4.� Discretionary Improvements. Lessee rnay, at its sole discretiQn, �erforxn modificatior�s, renavations, improvemen#s or other construction work on any tract of the Premises. Lessee may not ini�iate any Discretionary improvement an or to the Preinises unless it first submits a.Il plans, specificatians and estinaates for the cvs�s of same to Lessor in writing, and alsa requests and receives in writing approval from Lessvr's Di�ector af Airport Systems or authorized representative ("Director"). Lessee covenants and agree� that it shall fully comply with all provisions of �is Section 4 in the construction af any such Discretionary Improvements. i,�ssor shall promptly review, consider and decide on approval of such pla.ns, specificahons and estimates. Upon completion of any such Discretionary �aprovemenis or the fermination ai this Lease, Lessor shall talce fi�ll htle to any Discretionary Improvements on the Premises. 4.3 Process for AAAroval oi Plar�,s. Lessee's plans for eonstruction of the Discretionary Impravements shal� conform to the t�irport's architectura,� standards ar�d must also be appt'oved in writing by Lessor's Planning and Developrn�nt Dc�partment. All plans, specifications and work shal� cc�nfnrm to all federal, state and local laws, ordinances, rules and regulations in force at the ti�e that the plans are presented far review. Lessor covenants and agrees that Lessor sha�l ha�dle any ar�d all such plans for construction and improvement in a rnanner consistent with the pro�isions of Section 4.2 abova. JOHN J. JA�EOVE'E'Z, L�AS� SITE SDS Hangar and Cuound I,e.ase Ag�eement Fort Wodh Meacham AirpprE Page 4 of 23 4.� Docu�nen�s. Lessee shall supply the Directar with comprehensive sets of documentaiion relatzve to any Discr�tionary Irr�proverr�ent, including, at a minimum, a copy of the Certificate of Occupancy, a complete set oi Reeard Drax�vings and/or As-Bui1t Drawings in Adobe PDF and AutoCAD forma�s, and a Summary af trie total cost/value of the Discretionary Irnprovements. 4.� Bonds Repuired of Lessee. Prior to the commencement of any Tmprovement, Lessee shall deliver to Lessor a bond, executed by a corporate surety in accordance wi�h Texas Government Cade, Chapter 2253, as amended, in the fiill amount of each construction contract or project. The bonds shall guarantee (i) sat�siactory compliance by Lessee with all applieable arequixe�nents, te�rns anc� conditions of this Lease, including, but not Iimited io, the satisfactory completion of the respective lmpravemen�, and (ii} full pay�nents to all persons, firms, corparations oar other e�titaes with whc�m Lessee has a direct r�lationst�ip for the constructian of such Xmprovernents. In lieu of the requit-ed bond, Lessee rnay provide Lessor with a cash d�posit or an assignmen� of a certificate of depasit in an amount equal to 125°/Q ofthe full amaunt vf each construction con�ract or project. If Lessee makes a cash deposit, Lessee sha11 not be enfiitled ip any interest earned thereon. Certificates of deposit shall be from a financial instih�tian in tY�.e Dallas-Fort Worth Me�opolitan Area which is ir�sured by the Federat Deposit Insurance Corparation and acceptable ta Lessor. T�e interest earned on the certif cate of depasit shall be the property of Lessee and Lessor sha11 have no rights in such interest. If Lessee fails ta complete the respective Improvements, or if cla�ms are filed by third parties on grounds xelating ta such Improve�nents, Lessor shall be ent�tled to draw ctown the fu11 amount of Lessee's cash deposit or cerEzficate o�' deposit and apply the proceeds ta complete the Imparovezne�ts ar satisfy the claims, provided that anq balance shall be rerr�tted to Lessee. 4.6 Bonds Reaui�red of Lessee's Contractors. Prior to the comrnenc�nent o� any Discretianary Improvement, each of Lessee's contractors shall execute and deliver tn Lessee surety perfortriance and payment bonds in accardance with t�e Texas Government Code, Chapter 2253, as amended, to cover the costs of all work performed under such contractar's canfract with Lesse�. L�ssee shall provide Lessor with copies of such bonds prior to tk�e commencernent of such Discretionary improvement. The bonds shall guarantee (i) the faithful perFormance and completian of all constr�ciion work in accordance with the final plans and specifications as approved by Lessor, and (iij fuli payment for all wages for labar and services an� af al1 bilis for materials, supplies and equipment used in the performance of the construction coniract. Such bonds shall name bath JOI FN ]. JAN�VETZ, LEASE SITE SOS fiangar and Ground Lease Agreement Fort Worth �vleacham Airport Pay,e 5 0£23 Lessor and Lessee as dual obiigees. If Lessee serves as its own contractor, Sectian 4.5 shall apply. 4.'� Releases bv Lessor Unon Comqlet�on of Const�rucnon Worl�. Lessor will a11ow Lessee a dollar-for-dollar xei�buz�sen�ent from its cash deposrt account or reductivn of its claim upon Lessor's certificate of deposii to the extent of construetion costs paid t�irough that date upon (i} where Lessee serves as its own contractor, verification that Lessee has completed cons�ruction work, or (ii) where Lessee uses a con�ractor, receipt of the contractor's invoice and �erification that the contractor l�as completed its work and re�eased Lessee �fo the extent of Lessee's payment for such work, iuicluding bi11s paid at�idavits and final waivers of liens. Any unused amounis in the cash deposit accaunt wiil lae refunded to Lessee upon fmal completian af the construction wvrk. 5. U�E OF PREIVII�ES. Lessee hereby agrees to use the Premrses solelq for aviation-reiated purposes only and strictly in accordance w�ith the terms and conditions of this Lease. Lessee sha�l have the ri�t to sublease portions of ihe Premises to various third parties {"Sublessees"} for aviaiion-relaied purposes only under terms and canditions acceptable to and dete�-mined by Lessee, provided that alI such arrangements shall be in writi.n� and approvec� in advance by Lessor. AIl written agreements executed by Lessee io Sublessees for any portion of the Premis�s shall contain terms and conditions that (i) do not cor�flict with Lessee's duties and obligatians under this Lease; (ii) incorpora�e the terms and provisions of this Lease; {iii) restrict the use a� the Prernises ta aircraf�t storage or other arriatian or aviation-related pwrposes acceptable to Lessor; and (iv) treat use�s of the same flr substantially similar facilities in a fair and non-discximirzatory znanner. Lessee shall use a standard lease farm for all Sublessees and shall submit a copy of such sfandard lease form tv the Director prior to Lessee's executian of its first lease and from t�me to time theareafter �oliaw:ing any material changes to such lease form. Lessee may make non.-matez-ial modificatians to its standard lease to th� �xtent that such are not contrary to Lessor's Sponsor's Assurances witho�t t�e prior writ�en consent of Lessor. 6. REPORTS, AUDITS A1�D RECORDKEEP�G. Witl�in �h�-ty (30) days following the end of each calendar year, Lessee shall provide Lessor with a vvritten annual report, in a form acceptable to the Director that reflects Lessee's rentai rates for �1ie immediately preceding calendar year. Lessar may request, and Lessee shall promp�ly provide, similar reparts on a more fi�quent basis that reflect Lessee's rental rat�s on �he Premises for the period requested by Lessar. These repor� 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 perkaining to Lessee's aperations at the Airport and other obligations hereunder in a�nanner satisfactory to Lessor's lnternal Auditor and at a location within the City of Fort Worth. Upon Lessar's reques# and followiz�g reasonable IOHN J. JANDVETZ, LEASE S1TE SOS Haug:u• and Crround Lease Agreement �ort Worth Meacham Airport Page 6 of 23 advance notic�, L�ssee wl�l rnake such books ar�d records available for review hy Lessor during Lessee's normal business hours. Lessor, at Lessor's soie cost and expense, shall l�a.ve the �igtzt to audit such boal�s and records in order to ensure compliance with the terms of �his Lease and the Sponsor's Assurances made by I.essor to the Federa.l Aviation Administra�ion. 7. UTILITIE�. Lessee, at Lessee's sale cost and expense, shall be responsible �or the installatian and use of all utility services to a11 portions oi the Premises and for alT ot�ier related utility expenses, including, but not limited tv, depasits and expenses required for the installativn of ineters. Lessee further co�enants and agrees to pay all costs and expenses for any �xtension, maintenance or repair of any and all utilities serving the Premises. In addition, Lessee agrees that aIl utilities, air conditioning and heating equipment and other �lectricaliy- operated equipment which may be used on the Premises shal� fully camply wi�h Lessor's Mechanical, Electrical, Plumbing, Building and Fire Codes ("Codes"), as they exist or may hereafter be axn�ended. S. MAINTENA�iCE AND REYAIRS. $.l. Maintenance and Repairs by Lessee. Lessee agrees to keep and �a:intain the Premises in a good, clean and sanitary condition at all �imes, reasonable wear and tear expected. Lessee covenants and agrees that it wi11 not make or suffer any waste of the Prenr�ises. Lessee, at Lessee's sole cast and expense, will make aIt repairs or replace�ents necessary to prevent the deterioration in candition or val�xe of the Premises, incluc�g, but not limited to, the xnaintezaaxzce of and repairs to all hangars and other structure�, doors, windows and roofs, and all ixxtuxes, equipment, hangar rnodifications and surrounding pavement on the Premises. Lessee shall be respd�sible for all damages caused hy Lessae, its agents, servants, ernployees, contractors, subcontractors, licensees or invitees, and Lessee agrees to fuily repair all suc� da�nages at Les,see's sole cost and expense. Lessee agre�s that a11 improvements, trade fixtures, furnishings, equipment and other persanal property nf every kind or description which may at any time be on the Premises shali be at Lessee's sole risk or at th� sole risk of those claiming under Lessee. Lessor shal� no� be liabie far any daII►age to such property or loss suffered by Lessee's b�siness or business operations, which may be caused by the bursting, overflowing or leakir�g Qf sewer ar sfeam pipes, from water from any source whatsoever, or frorn any heating fixtures, plumbing fixtures, elec�ric wires, noise, gas or ndors, or irom causes of any other matter. 8.2. Coinuliance with ADA. Lessee, at its sole cost and expense, agrees to ?�eep and maintain the Premises in full compliance at all times with the Americans with Disabilities Act of 199Q, as JOHN J. dANOV ETZ, LEASE S1TE SOS iiangar and Ground Lease Agraement Fprt Wo�th [vleacham Airport Page 7 of 23 amended ("ADA"}. In addition, Lessee agxees that ai1 irr�prvvements it makes at tne Airport shall cam�ly �vith all ADA requirements. �.3. Inspect�ons. �.3.i. I.essor shall have the ri�ht and privilege, through its o£ficers, agents, servants or etnployees, to in�pect the Premises. Except in the event of an emergency, Lessor shall conduct such inspections during Lessee's ordinary business hours and shall use Yts besi efforts ta prQvide Lessee at Ieast twa (2) hours` notice pr�ar to any inspection. 8.3.�. If Lessor determines during an insp�ction af the Pxemises that Lessee is responsible under this Lease for any maintenance or repairs, Lessor shall notify Lessee in writing. Lessee agre�s �o begin suct� rnaintenance or repair work diligently within thirty (30) calendar days following receipt of such not�ce a�c�. to then camplete such maintenance or repair work within a reasonable time, considez-ing tl�e nature of the work ta be done. If Lessee Fails to begin the recommended maintenance vr repairs within such time or fails to complete the maintenance or repairs within a xeasonable �ime, Lessor may, . in its discretion, perform such maintenance or repairs an behalf of Lessee. In this even�, Lessee will reimburse Lessor for the cost of the maintenance or repairs, ar�d such reimbursement will be due on the date of L,essee's next monthly rent payment following coxnpletion of the maintenance ar repairs. . 8.3,3. During any inspection, Lessor may perform any obligatiflns that Lessor is aut�orized ar required to perform ur�der the terms of this Lease or pursuant to its governrn�ntal duties under federal, sta.te or Iocal laws, rules ar regulatians. �.3.4. Lessee wilt permit the Ciiy"s Fixe Ma�rshal or hi� or her authorized a�ents to inspect the Premises and I.essee will comply with ail �equiren�ents of the Fire Marshal or his or her author�zed agents that are necessasy to br�g tbe Premises inta compliance wi�th the City of Fart Worth Fire Cade and Building Code pravisions regarding fire safety, as such provisions exisi or may herea�er be amended. Lessee shall maintain in proper condition accessible fire extinguishers of a number and type approved by the Fire Mazshai or his ox her autho�zed agents for the particular hazard involved. �.4. Enviranment� Remediation. Ta the best af Lessor's knowledge, the Prernises comply with all applicable federai, state and Iocal environmental regulat�ons ar standards. Lessee agrees that it has inspected the Premises and is fially advised of its awn rights without reliance upon any representation made by Lessor concerning the environrnental condition of the Premises. LESSEE, AT IT5 SOLE COST AND EXPENSE, AGREES THAT IT 70I-I�! J. JANf3VET� I.EASE S3TE SOS Hangar apd t'rrouud I.ease Agreeruent Fort WorEh Meacham Airport Page $ vf 23 SI�ALL EE FULLY RESPONSIBLE FOR THE REMEDIATI4N QF ANY VIOLATION OF ANY APPLICASLE FEDERAL, STATE OR LDCAL EIYVIRONMENTAL REGULATION DR STANDA.RD THAT IS CAUSED BY LESSEE, ITS OFFICERS, AGENTS, SERYANTS, E1VfPLDYEES, co�vTrrAc�alrs, suBco�r�cTons o�t 1�vvrT��s 9. �0. SIGNS. Lessee �ay, at its soie expense and with the pr�or written approval of the Director, install and mair�ta.in signs on �he e�.teriox of the Premises related to Lessee's business operaiions. Such signs, however, must �ae in keeping with the siz�, color, tocation and �nanr�er of display of other signs at the Airport. Lessee shall maintain a11 such signs in a safe, r�eat, sightly and physically good condition. R�GHT� AND RE�ERVATIOl�IS OF LES�OR. Lessor here�y 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 Airpart against obstruction, iricluding, but not limited to, the right to preve�� Lessee from erecting or permitting to be erected any building or other structure which, in the opinion of Lessor, would limit the usefiilness of the Airport, constitute a haza�rd to aircraft ar diminish the capability of existing or future avigational or navigational aids used at th� Airport. 10.� Lessor reserv�s tl�e right to de�elop and ir�prove the Airport as it sees fit, regardless of the desires or view of Lessee, and without interference ox hinc�rance by ar on behalf of I,essee. Accordingly, ntithing eontained in t�is Lease shall �e construed to ab�igate Lessor to relocate Lessee as a result of an� such Airport developnnents or improvements. 1D.3 This Lease shall be subordinate to the provisions of any existing ar fiiture agreement between Lessor and th� United States Government, whieh relates to the opera.tion or rnain#enance of the Airpart and is required as a condition for tl�e expendi�ure of federal funds for the development, maintenance or r�air of Airport infrastructure, 3n tlie event that any such existing or iuture agre�mcnt directly causes a material restriction impairment or inter£erence with Lessee's primary operations on the , Premises ("Limitation") for a period of 1 Lease shall continue in fii�l force and effect. (7) ca�endar days, Les�ee and Lessor shall ;ss than seven (7) calendar days, this Ii th� Limitatian lasts more than seven negatiate in �OQCI f�1� t0 YE50�V� OT mitigate the effect af �he Limitatian. If Lessee a�nd I.essor are in good faith unable to resoive ar r�itigate th� effect of the Limitation, azzd the Limitation lasts between seven (7) at�d one hundred eighty (] SO} days, then for such period (i) Lessee may suspend the p�yment of any rent due hereunder, but only if Lessee first pravides adequate proo� to Lessar that the Limit��ion has directly caus�d L�ssee a material JOHN J. 7AiVOVETZ, LEASE SiTE SOS Hangaz• and Ground Lease P.greement Fort Worth Meacham Airpo�G Page R of 23 loss i� revenue; (ii) subject to ordirtary wear and tear, L,essor shall maintain and preserve the Premises and its improvements ir� the same condition as they existed on the date such Limitation cvmmenced; and (iiz} the term of this Lease shali be ext��ded, at Lessee's option, for a period equa� to the duration of such Limitafiion. If the Limitation lasts more than one hundred eigl�ty (184) days, then (i} Lessor and Lessee may, but s1�all not be rec�uired to, (a} fiu�ther ad�ust the payment of rent and other fees ar charges, {b) renegotiate maintenance responsibilities and (c) extend the tezm of this Lease, or {ii) Lessee may �erminate this Lease upon thirty (30) days' writ�en notice to Lessor. ' 10.4 D«ring any war or national emergency, Lessar shall have the right to Iease any part of the Airport, including its Ianding area, to the Ur�ted Siates Government. rn this e�ent, any provisior�s af this irzstrument which are inconsistent witli the provisions of the Iease to the Govercainent shall be suspended. Lessar shall nat be liable for any loss ar damages alleged by Lessee as a result oi ihis action. However, nothing in this Lease shall prevent Lessee from p�'suing a�y rights it may have far reimbursement from the United States Gove�nment. If any lease between Lessar and the United States Gnvernm�nt executed pursuant to this Section 14.4 airectly causes a Limitation for a pariod of less than seven (7} calendar days, this Lease shall continue in iull force and effect. If the Lirnita#ion lasts more tha� seven {7} calendar days, Lessee and Lessor s�all negotiate in good faith to resolve or mitigate the effect of the Lirnitatian. If Lessee and Lessor are in gaod faith unable to resolve ar mi�iga#e the effect of the Limitation, and the Limitation lasts between seven (7) and ane hundred eighty (1 SO} days, then for sueh p�riod (i) Lessee may suspend the payment of any rent due hereunder, but only ii Lessee first provides adequate pmvf to Lessor that the Limitat�an has directly caused Lessee a rnaterial loss in re�enue; {ii) subject to orclinary wear and tear, Lessor shall maintain and prescrve the Pr�mises and its improvements in the same condition as they existed on the date such Lirnrtation commancad; and (iii) the term of tk�is Lease shaIl be extended, at Lessee's optian, for a period equal to the duration of such Limitation. I� the Limitaxion lasts more tlian one hundred eighty (180} days, then (i} Lessor and Lessee may, but shalI r�ot be required t�, (a) further adjust the payment of rent and other fees or char$es, (h} renegotiate maintenance responsibilities and (c) extend the term of this Lease, or (ii) Lessee �nay ie�ate this Lease upc�n thirty (30} days' writien notice to Lessar. 10.5 Lessor coven.ants and agrees that during i1�e term of this Lease it will operate and maintain tiie Airport and its facilities as a public airpart consistent vvith and purs�ant to the Sponsor's Assurances given by Lessor to �e United States Goveivment through the Federal Airport Aci, and Lessee agrees tl�at this Lease and Lessee`s rights and privileges h�reunder shali be subordinate to the Sponsor's Assurances. 1fl.6 Lessee's rights hereunder shall be subject to ali existing arid future utility and drainage easements and riglrts-of-way granted by Lessor for �iY�e insta,Ilation, maintenance, inspection, r�pair or removal of facilities owned or apera.ted by JQHN J, JANOVE'CZ, LEASE SITE SQS Tlangac and C`iround Lease Agraement �ort Worih Meacham Airport Page 10 of 23 electric, gas, �,�rater, sewer, communication or other utili#y companies. Lessee's rights shall additionally be subject to a11 rights granted by any ordinance or statute whieh allows utiliry companies ta us� publicly-owned property for the provision of utility services. 10.7 Lessar agrees Lessee sha11 have the r�ght of in�ress ax�d egxess to and from the Premises by means of roadways for automobiles and taxiways for aircraft including access during the construction phase o� airport improvements, unless atherwise agreed to in writing by both parties. Such rights s�all be consistent with the rules and regUlations with respect to the occupancy and use of aiiport premises as adopted from time to time by the City af Fort Worth and by the Federa� Aviation Administration or any other state, federal or �oca1 authority. 11. IllTSU__RANCE. Lessee shall pmcnre and maintain at a11 times, in full force and effect, a policy or policzes of insurance as specif ed herein, naming the City af Fort Wort1� as an additional insured and cover�ng all public �sks reIated to the �easing, use, occupancy, maint�anc�, existence or lacatian of the Prexnises. Lessee shaIl obtain the required insurance specified to be maintained by a commercial tenant in accordance with Exhibit "B", the "City of Fort Worth Aviat�on Insurattce Requirements" attached hereto artd made part of this L.ease for ail purposes. In addition, Lessee shall be responsible for all insurance to construction, improvements, modifications or renovations to the Premises and fior personal property of its own or in its care, custod� or co�trol. 11.1. Adiustments to Repuired Coverage and Limits. insurance requirements, including additional types of coverage and increased 1imi�s on existing coverages, are subject to change at Lessor's option and as necessary to cover Lessee's and any Sublessees' operations at tne Aitport. Lessee will accordingly comply with such new requirements within tliirty (30} days following notice to Lessee. 11.2. Lessee shall procure and rnaintain at ali times, in full farce and effect, a policy or �olicies Qf insurance as more particularly set �orth ir� Exhibit �B", which is attached hereto and incorporated herein for all piuposes. 11.3 As a condition precedent to the e�fectiveness ai this Lease, Lessee sha11 fiirnish Lessor with appropriate certificates of insurance signed by the respective insurance companies as proof that it has abtained the types and amounts af insurance coverag� requsred herein. L,essee hereby covenants and agrees that no# less ttian thirty (30) days pri.or ta the exp�ration of any insurance �olicy required hereunder, it shall provide Lessor with a n.ew or renewal certificat� of insurance. In actdition, Lessee JqHN J. JAt�fDVETZ, LEASE SITE 505 Flangar and Ground I.ease Agreement Fort Worth Meacham Airport Page L 1 of 23 shall, at Lessor's rec�uest, provide Lessor wi�h evidence that it has maintained such coverage in full force and effect. 12. IlVDEPENDEI�T CU�iTRACT4R It is expressly understoad and agreed that Lessee shall operaxe as an independent contractor as to alI ri�ts and privileges granted herein, and not as an agent, representative or employee of Lessor. Lessee shail have the exclusive rig�t to co�.trol the details of i�s operations and activities �n the Pr�mis�s and shall be solely responszble fox the acts and omissions of its officers, agents, servants, employees, con�ractors, subcontractors, pa�rons, licensee� and inviteEs. L.essee ackno�rledges that the dactrine of respondeat superior shall not apply as between Lessor and Lessee, its officers, agents, empioyees, contractors and subcontraciors. Lessee further agrees that n�thing herein shall be con�truec� as the creatior� of a partnership or joint e�terprise between Lessor and Lessee. �3. Il�IDENIl�TIFICAT�OI�T. LESSEE HEREBY ASSU1�iES ALL LIABILITY A1VD RESPONSIBILITY FOR PROPERTY LOSS, PROPERTY DAMAGE AND/QR PERSONA� INJURY OF ANY KIND, INCLUDING DEATH, TU A.NY AND ALL PER50NS, OF A1VY �I�VD UR CHARACTER, WHETHER REAL OR ASSERTED, A_RISING OUT �F UR IN CONNECTION bVITH ITS USE OF TH� AIRPORT UNDER THIS LEAS'E �R WITH THE LEASXNG, MAINTENANCE, USE, OCCUPAIVCY, EXISTENCE OR LDCA7'lON QF THE PREMIS�S, EXCEPT TO THE �XTENT CAUSED BY THE GR05S NEGLIGENCE OR INTENTIONAL MISCOND�TCT DF LESSOR, ITS OFFICERS, AGENTS, SERVANTS OR E1�2'PLOYEES DURING THE TER1Vl QF THIS LEASE, LESSEE COVENANTS AND AGREES TD, AND DUES TD T�H'E EXTENT ALLOWED BY LAW, WITHOUT WAIVING A1VY DEFENSES �ROYIDED BYLAW, �IEREBYINDEMNIFY, HOLD HARMLESSAIVD DEF�ND LESSOR, ITS OFFICERS, AGENTS, SERVANTS AND E�IPLOYEES, �'ROM AND AGAINST Ali�Y AND ALL CLAIMS DR LAWSUITS FOR EITHER PROPERTY DAMAGE OR L055, INCLUDING AL�EGED DA�VIAGE OR L05S TD LESSEE'S BUSINES,S AND ANY RESULTING LOST PROFITS, AND/OR PER50NAL INJURY, INCLUDIIVGDEAT�T, TO f11VY111VD ALL PERSONS, 4FANY KI1VD DR CHARACT�R, WHETHER REAL OR ASSL�'RTED, ARISING DI7T OF OR IN CONNECTION WITH LESSEE'S USE DF THE AIRPORT UNDER THIS LEASE OR W�TH THE U5E, LEASING, MAINTENANCE, 4CCUPAIVCY, EXISTENCE OR L�CATION �F TH� PREMISES, EXC�PT TD T'HE EXTENT CAUSED BY THE GR�SS NEGLIGENCE OR INTENTIONAL MISCONDUCT' OF LESSOR, ITS OFFICERSAGENTS, SERVANTS OR EMPLDYEES: LE'SSEE ASSUMES ALL RESPONSIBILITY �IND AGREES TD PAY LESSOR FOIt �1NY E1ND ALL INJURIES �R DAI�AGES TU LESSOR'S PROPERTY WHICH ARISE OUT OF OR IN CONNECTION WITHA.NYAND ALL ACTS OIZ OMISSIONS OF LESSEE, ITS 4FFICERS, AGENTS, E1tIPLOYEES, C4NTRACTORS, IOHN J. JANOVHTZ, LEAS� 513'E 50S Hangar aad Ground I.ease Agreentent ForG Worih �vleacham Airport Page 12 of 23 SU�SCONTRACT4R5, LICENSEES OR INVITEES, EXCEPT TO THE EXTENT CAUSED BY THE GROSS NEGLIGENCE OR IIVTENTIONAL 11gISCONDUCT OF LES'SOR, ITS OFFICERS, AGENTS, SERY�4NTS OR EMPLOYEES. LESSOR DOES NOT GU�ANTEE POLIC.E PR4TECTI4N TO LESSEE, ANY SU�LESSEES OR �"l-IEIR PRDPERTY. LESS4R IS OBLIGATED ONLY TO PROVIDE SECURITY ADEQUATE TO MAINTAIN LESSOR'S CERTIF�'CATION UIVDER FAA REGULATIONS LESSEE SHALL COMPLY WITH ALL APPLICABLE REGULATIONS OF �'HE FAA RELATING T4 AIRPORT SECURITY. LESSEE SHALL PAY ALL FTNES 11�POSED BY THE FAA ON LESSOR OR LESS�E RESULTING FROM LE55EE'S OR ANY SUBLE55EE5' FAILURE TO COMPLY N'ITH SUCH FAA REGULATIDNS OR TO PREVEIVT UNAiITHORIZED PERSONS QR PARTIES FROM OBTAINIIVG ACCESS TO THE AIR �P,BRATIONS AREA OF THE AIRPORT FAO1V� THE PREMISES. 14. TER1i+II1VATI0I�T. In addition to tertnination rights contained elsewhere in �is Lease, Less�r sha11 have the right to terminate this Lease as follows: 14.1. Failure bv Lessee to Pav Rent, Fees or Other Char�es. If Lessee fails to pap any rent, fees or other charges d�e under this Lease, Lessor shall deliver ta Lessee a vvritten invoice and notice to pay �e i�voice within tcn (�0) calsr�dar days. If Lessee fails to pay the balance outstanding within such time, Lessor shall have the right to terminate tlus Lease unmec�iately. 14.2. Breach or Default bv Lessee. If Lessee com�niis any breach or default, o�l�ear than Lessee's failure ta pay reni, Lesso:� shall deliver writ�en notice to Lessee specifying the nature af such breach or c�efault. Lessee shall have thiriy (30} calendar days following such w�tten notice to cure, ad�ust vx correct the prablem 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 terniinate this Lease imr�nediately. 14.3. AbaIIdo�men.t or �T�n�Use oi the Premises. Lessee's abandanment �r nan-use of ihe Pr�rnises for any reason for more than thirty (30} consecutive ca�endar days shall constitute grounds for immediate termina#ion of this Lease by Lessor. JOHN J. ]ANOVETZ, LEASE $1TE 505 Hangar and C�ound Lease Agreemen[ Fort Worth Meacham Airport Page 13 of 23 14.�. Lessee�s Financial4bligations ta Lessor upvn Termi�nat�an,_Breach or Default. Tf Lessar terminates tl�is Lease for any non paymeni of rexzt, fees ar other charges or for any other breach or default as provided in Sections 14.1, 14.2 �r 14.3 of this Lease, Lessee shall be liable for and shall pay to Lessor alI rent due Lessor far the remainder oi the term then in effect as well as a11 arrearages of rentals, fees and charges payable �ereunder. In no event shall a reentry onto or reletting of the Premises by Lessor be constnzed as an electian by Lessor to forfeit any of its righ� under this Lease. 14.�. Ra�hts of Lessor Upon Termi�ation or E�iratiaq. Upon tern�ination or expiration of this Lease, a11 rights, powers and privileges �anted to Lessee hereunder sha11 cease ax�d Lessee shall vacate the Premises. Within twenty (20) days following the effective date of termination or expiration, I.essee shall remove from the Premises all trade fixtures, too�s, rnachinery, equipment, rt�aie�als and supplies plac�d on the Pxemises by Lessee pursuant to this L�ase. After such time, Lessor shail have the right to take ful] possession of the Premises, �y forc� if neca�sary, and to remove any and all parties and property remaiving nn any part of tne Prernises. Lessee agrees that it wili assert no claim of any kind against Lessor, its agen�s, servazats, emplo�ees ar representa.tives, which may stem from Lessor's termination of this Lease or an.y act incident to Lessor's assertion of its right to terrninate or Lessor's exercise of any rights granted hereunder. 15. 1lTOTICES. Notices required pursuant to the provisions of this Lease shall be conclusively determiued to have been delivered when (i) hand-delivered to the othez� party, its agents, employees, servants or representatives, or (ii) depasited in the United Siates Mail, posfiage prepaid, addressed as fvllaws: To LESSOR: To LESSEE: City of Fort Worth Jolzn J. 3anovetz Aviation Depattment 4508 Jim Mitchell Trail, W 201 American Concourse, Suite 330 Colleyville, TX 76034-4535 Fort Workh, TX 76 i 06 S 17.994.2554 lOHtrE .l. JANOVETZ, L�ASE SITE SOS Hangar and Gxounfl Lease Agree�nent Fort Worth ivleacham Aitport Page 14 of 23 16. ASS�GN�VIEl�iT A1�D SUBLET'TIl�G. 16.1. In General, Lessee skall have the righ� to sublease portions of the Premises as provided by and in accardance with Seciaon 5 af tbis Lease. Otherwis�, Lesse� shall not assign, sell, convey, suhlease or transfer the entirety of its rights, privileges, duties or interests graxxted by this Lease without the advance written consent af Lessor. 16.�. Conditions of Approved Assi�t�mea�s and Subieases. If Lessar consents to any assignment ox sc�blease, all terms, covenants and agreemenfis set iQrth in this Lease shall apply to ihe assignee or sublessee, and such assignee or sublessee sl�all be bound by the terms and canditions of this Lease the same as if it had originally executed this Leas�. The failure or refusal of Lessor t� approve a requested assignment ar sublease shall not re�ieve Lessee of iis obligations hereunder, including payment of ren�als, fees and charges. 17. LIEI�TS BY LESSEE. Lessee acknowiedges tbat it has no authority to engage in any act or to make any contract which �ay create or be the faundat�on 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 cQst and expense, shall liquidate and discharge t�ie same wixhin thirty (3�} days of such creation or filing. Lessee's failure to discharge any such purported lien shall constiiute a breach of this Lease and Lessor may tern�inate tl�is I,ease upon khirty (30} days' writien notzce. Howe�er, Lessee's financiai obligation to Lessor to liquidate and discharge such iien shaIl continue in effect fallawing tezxnznatzon of this Lease and until suc� a time as the lien is discharged. 1$. TAXES AND ASSESSNIEI�ITS. Lessee agrees to pay anq and all federal, sta.te or Iocal taxes or assessments which may lawfully be levied against Lessee due to Lessee's use or oecupancy of the Premzses or any improvements or praperty placed an the Premises by Lessee as a result of its occupancy. 19. COIi�iPLIAliTCE WITH LAWS ORDINAR�CES RULES ANX) REGULATI4I�TS. Lessee covenants and agrees that it shall nat engage in any unlawfial use of tl�e Premises. Lessee £urther agrees thai it shall not permit its afficers, agents, servants, employees, coz�tractors, subcon#ractars, patcons, licensees or invii�es to engage in any untawful use of the Premises and Lessee immediately shall remave fram the Premises any person engaging in such unlawful activities. Unlawfi�l use of the Prerr�ses by Lessee itself sha11 consritute a� immediate breach of this Lease. JOHN J. JANOVETZ, LBASE S1TE SUS Hangar and Gmund Iease Ageeement Fort Worth Meacham Airport Page 15 of 23 Lessee agrees to cotnply wzth all federal, state and local laws; all orc�inances, rules and regulatior�s of Lessor; ail r�les and reg�tlations established by the Direetor; and all rules and regulations adopted by the City Council pertaining to the conduct required at aiaports awned and operated by the City, as such laws, ordinancas, rutes and regulations exist or may hereafter be amended ox adopted. lf Lessor notifies Lessee or any of its officers, agents, em.ployees, conf�rac�ors, subcontractors, licensees or invitees of any violation af such Iaws, ordinances, rules or regulations, Lessee and its officers, agenis, employees, contrac�ors, subcontractors, licensees or invitees shall immediately desist from and correct the �criolarian. 19.1 Cam�lianc� wi#h 1V�inimum Standards and Schedule vf Rates aud Char�es: Lessee hereby agrees to camply at all times vvifli the City's Minimum �t�ndards, as may be adopted by the City Cauncil from �ime to time. Lessee shall be bound �y any charges adopted in the City's Schedule of Rates and Charges, as n�ay be adopted by tl�e City Council fram time ta time. 20, IiTON DISCRi�IINATION COVEI�IA�1T. Lessee, for itself, its persona.l representatives, successors in interest and assigns, as part of the consideratian herein, agrees as a covenant rnnning vviih the lax�d that no person shall be excluded fram participation in or denied the benef ts of Lessee's use of the Premise� on the basis of race, color, anational origir�, reiigion, disability, sex, sexual orientation, transge�der, gender identity or gender expression. Lessee iurther agrees for itseif, its personal r�presentahves, successors in interest and assigns that no person shall be excluded from the provisior� pf any services an or in the construction of ax�y i�provements or altera.tions to the Premises an grounds of race, color, national origin, religion, disability, sex, sexual orientatian, transgender, gender iden�ity ar gender expression. Lessee agrees to fiirnish its accornmoclatinns 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 requiremen#s imposed by or purs�ant to Title 49 vf the Code of Federai R��lations, Part 21, Non-Discrimination in Federally Assisted Programs, of the Department of Transportarion and with any amendments to these regularions which may hereafter be enacted. If any claim arises from an alleged vialation of this non-discrimination covenant by Lessee, its personal representatives, suceessors in interest or assigns, L�ssee agrees to indemnify Lessor and ho�d Lessor harmless. 21. LICEliTSES AND PERNiITS. Lessee sha11, at its sole expense, abtain and keep in effect a11 licenses and pear�r�its necessary for the operaiion of its operations at the Airp�rt. ,EQHN ). JANOVETZ, LEASE SiTE 505 �Tangar and Ground I.ease Agraement Fort Worth Meacham Airport Page 16 of 23 ��. GovE�rn�rE�vTAL rowExs. It is understvod anci agreed that by execution of this Lease, Lessor daes not waive or surrender any of its governmental powers. �3. NO W�1�VER. The failure of Lessor to insist upon the performance of a�y tern� or provision of #his Lease or to exercise any right granted herein sha11 not constituie a waiver of Lessor's right to insist upon appropriate performance ar to assert a�y such right on any future occasion. 24. VEl�[TE AlliD JURI5DICTI01l�. If any actian, whether real ar asserted, at law or in equity, arises on the basis of any provision of this Lease ar of Lessee's opera�ions on �khe Premises, ve�ue £or such action shall tie in state courts located in Tatrant Cauniy, Texas or the United States District Court for the Northenn D'zs�rict of Texas, Fo�t Worth Division. This I,ease sha11 be construed in accordance with the laws of the State of Texas. 2�. ATTORNfEY�' FEES. In the event there should be a breach oar default under any provision af this Lease ar�c� either party should retain attorneys or incur other expenses for the cailectian of rent, fees or charges, ar the enfarcement of performance or observances of any covenant, obligation or agreement, Lessor and Lessee agree that each party sha.Il be responsible for i�s own attorneys' fees. �5. SE�ERABILITY. Ii any provision of this Lease shali be heid ta be invalid, illegal ar unenforceable, the validity, leg;ality and enforceability of the remauung provisions shall not in any way be affected or irnpaired. �7. FORCE Ii�AJEURE. Lessar and Lessee will exercise their goad faith efforts to meet their res�ective duiies and obligat�ons as set �orth in t�is Agree�x�eni, but will not be helc� liable for any delay or omission in p�ormance due to force majeure or other causes beyond theix reasonable control, including, but not iimited to, compliance with any goverrazn.ent iaw, ordinar�ce, or regulation; acts of Goc�; acts af the public enemy; fires; strikes; lockouts; natural dasasters; wars; riots; epidemics or pandemics; gavernment action or inaction; orders of gavernment; materiaI or labor restrictions by any govsrnmental a�ihority; transportation problerns; restraints ar prohibitions by any court, boa�d, depat�tment, cominission, ar agency of the United States or of any States; civil disturbar�ces; other national or regional emergencies; or any ather JOHN J. 3ANOVET'Z, LEA$E SETE SOS Hangar and Gmund Lease Agreement Fort Worth Meacham Airport Page 17 of 23 similar cause not enumerated herein but which is beyond the zeasonai�le control af the Party whose perfor�nauce is a�'ected {collectively, "Force Majeure Event"). The perfor�nance of any such obligation is suspended during the period of, and only to the extent of, such prevention Qr hindrance, pravided the ai�ected Party �rovides notice of the Force Majeure Event, and ar� expianation as to how it prevents or hinders the Party's performance, as soon as reasonably passible af�er the occ�arrence ofthe Force Majeure Event, with the reasonabler�ess of s�ch notice to be determined by the Lessor in its sole discretion. The notice required by this section must be addresseci and delivered in accordance with this Lease. 2$. HEADINGS NOT CONTROLLING. Headings �nd titles used in this Lease are far reference purposes only and shall nat be deerned a part of this Lease. �9. EI�TIRETY OF AGREEIVIEI�TT. This wri�ten instrument, including any documents attached hereto or incorporated herein by refez'ence, contains �he entire unders�anding and agreement between Lessor and Lessee, its assigus and successors in interest, as ta the matters contained hercin. Any pr�or or contemporaneous oral or written agreernent is hereby declared null and void to the exteni in conflict with any provisions of this Lease. The terms and conditions of this Lease sha11 not b� amended unless agreed to zn writing by both parties and approved by the City Council of LEssor. 30. CHAPTER 2270 �F THE TEXA5 GOV_ERl�T1VIEllTT CODE. Lessee acknowledges t11at in accardance w��h Chapter 2270 of the Texas Gvvernmen� Code, the City is prohibited from entering into a contract with a cornpany for goods or services unless the contract contains a writken verification from tbe co�pany that it: {1) does not boycott I�raei; and (2} will not boycott Israel during the term of the contract. The terms "boycott Israel" and "compan�' shaIl have the meanings ascribed to thase terms in Section 808.a01 0� the Texas Government Code. By signing this Lease, Lessee ce�iifies that Lessee's signature pravides written verifacation to the City that Lessee: (1) does not haycott Israel; and (2) will not baycott Israel duri�cg the ter�m o, f'the Leas� [�ignature Pages Foliow] .fOi-IN J. dAT10VETZ, LEASE SITE 505 Hangar and Ground Lease AgreemenY Fort Worth Nleacham Airport Page 18 of 23 IN WITNESS WHERE4F, the parties hereta have executed this Agreement in multiples an tnis the day of , 2021. CITY OF FORT WORTH; By: ,� � Ca+�;_ Fernando Costa. Assistant City Manager Date: 3�zG12a2� STATE OF TEXAS � COUNTY OI` TARRANT § BEF�RE ME, the undersigned autharity, a Nataty Publie in and far the State af Texas, on this day �ersonally appcared Fernando Cnsta, knowr� to me to be the person wha�e name is subscribed to the foragoing insin�ment, and acknowledged to me that the same was t;t�.e act of t.�e City of Fnrt Worth and that he executed the same as ihe act of the City of F4rt Worth for the purposes and consideration thetein expressed and in the capacity therein stated. GN�N UNDER MY HAND AND SEAL OF OFFICE this _ dC ��--day i!� - , 202 � . AM �;IAS. SANCH�Z . ' 2o�Awti P�a� *= �y Nvtary ID � 2256490 �� � • ���+": Ex ires Dec�mber 19, 2021 � , •-. F�� t,�•' p No Public in and for the S#�te of Te APPROVED AS TO FORM AlliD LEGALIT By: Thomas Royce Hanse , Assistant City Attorney A �� � , M&c: � � -� �a b Approval Da%: `;��� �v�. l Forrn 1295 Certificate #: ,� p z/—�l �3 f O r � �,�,�- � Secretary �� �� ��°�����' �.�, �l� � �t- �'� : �` � : ��r � a�. �';..=?�.qY• •• � ....r� • �F` i ,4,s � . `�.�, ��`�°�:�w } , ' �������it� €������ JOHN J. JANOVETZ, LEASE SiCE 54S ��� �����,���,�f, Hangar and Ground Lease P,greement Fort Worth Meacha�n Aicport r �F� �����1 �� Page 19 of 23 1 Contract Compli�nce 1Vlan�ger: By signing, I acknowledge that I arn the person responsible iar the mor�itoring and administration ___of lhis contra m�'�g-�n uriug ail performance and reporting requirenrzents. �`"" - -_ ----_ --���'� �- R l F�'ope 1Vlanager Sarbara Goodwin Print l�iaine JOHI�T J. JANOVETZ: By: �o J. J o tz An Individual Date: �` �o�- c��'� l STATE OF TEXAS COi.JNTY OF��r rc� �� 0 ATTEST: By: BEF�RE ME, the undersigned au�hority, a Nvtary Public in and for the State of Texas, on this day personally appaared JOHN .I. JA�iTOVETZ, known to me tQ be the person whose narne is subscribed �o the foregoing instrument, and acknowleciged to me that the same was tk�e act of JOH�T J. JANOVETZ, and that he executec� the same as the act of JOHN J. ,TAI�TOVETZ, for the purposes and consideration therein expressed and, in the capacity, therein stated. G N UNDER MY HAND AND SEAL OF OFFYCE this day �, , 2fl21. `,oS45�YPlliq4C e���vi �. �u-rrs MOTAFiY PU�LtC '` � * BiAFE OF T£1C/18 �,,��*ry�.�Py n�wca�nnn. �x� o�,aeizo�i r�oTn�v Eo tas2asa2-s JOH7V J. JANOV�TZ, LEASE SiTE 50S Hangar and Graund Lcase Agree�nent F01t WOIYh M ,�ClCham Ai1�Rrt Page 20 of 23 C Notary Public and �ar the State of Texas �������`�� ������ ��� ���l���I���IQ � ki o B9� ����� !� D� EXHIBIT A Map of 50S � ]OHN J. 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T�i� JOHN J. JANOVBTZ, LEASE S1TE SOS Hangar and Ground Ixase Agreement Fort Worth Meacham Airport Pa�e 23 of 23 ��`ry ���N��� i������a DIAT�, 3/23/2021 R�I��R�WC€**M&C 21- LOG iVO.: 0216 �AIVIE: COD�: C TYPF: CONSENT�UBLIC H�A,RI�1G: O€fidal site of the C�Ey of �art tNprth, Texas Fil RT'�ORT Fi .�. 55FTW JOHN J JANOVE7Z HANGAR AND GROUND LEASE, SI7E 5Q5 NO SUBJ�CT: (C� 2) Authorize the Execufion of a New Hangar and Ground Lease Agreerrtent for Approximat�ly 3,'!20 Square Feet of Ground Space Including a 2,600 Square Foot Hangar known as Lease Site 50S wi#h Jahn J. Janorretz af Fart Warth Meacham International Airport R�CUiW�AI➢EfVDATI0A1: It is recommend�d that the City Council au#ho�ize the execution of a new hangar and ground lease agreement for approximately 3,120 square feet of grouncf space, including a 2,600 square t'oot F�angar known as �ease Sife 50S with John ,J. Janovetz at �'ort Worth Meacham international Airpork. DISCUSSIOAI: The City and Texas Aviation Engineering previously entered inta City Secretary Contract (CSC) '!'l628, dated ApriE 2, 1981, a twenty-five-year unirt�proved ground lease for the lease and use of real property known as Lease Site 50S at Forf Worth Meacham International Airport. The lease contained two five- year options to renew bufi was subsequently amended by CSC 33519, dated May 22, 2006, to extend the term fi�e years, thereby extendirig the termination date to December 31, 2011. On Septemb�r 20, 2007, ti�e City execu#ed CSC 35828, consenting to an assignment of Lease Site 50S from Texas Aviation Engineering to John J. Janovetz. The assignment of the lease included an amendment to increase the renta! rate in accordance with the then-current Schedule ofi Rates and Charges. A subsequent amendment to CSC 11628, executed on April 14, 2096, e�ended the lease in reeognition of improrrements to the hangar tay Lessee and expired on December 31, 2020, which pro�ided fhe Lessee with a 40-year ground �ease in total. The Lessee is eurrently in a holdover sta#us or� a month-to�month agreement. The City and John J. Janovetz now wish ta en#er into a new hangar and ground lease agreement thaf wili comrrtenc� on the ef�ecti�e date of the new lease, for a ten-year lease term with two consecufive options to ren�w for five years each. Annual rev�nue generated from the hangar is appraximately $14,300.00, paid in monthly installments of approximatefy $'1,991.67. Annual revenue from the ground space is approximately $1,466.40, paid in monthly installments of a�praximately $722.20. Rafes are in accardance wit� the Aviatior� Depar�rrtent's current Schedule of Rates and Charges and the A�iation Depar�ment's Leasing Policy wi#h hangar rates based on a recen# appraisal performed by a qualifiec! third-party appraiser. All terms and conditions of the lease agreement wil! iae in accordance with the City of Fort Worth and Aviation Department policies. Renial rates shalf be subject to an increase on October 1 sf of any g�Wen year, basec� on the upward percentage change in the Consumer Price Index for the Dallas-Fort Worth Metropolitan area. At no time wili the adjusfied rate exceed the rate that is currently in the Schedule af Rates and Charges. Fi�e-year rate adjustments wi[I be applied ta the ground rate starting on October �, 2026, and every fift� year thereafter. If near the en�E af the ten-yea� initial term, a renewal term has be�n requested by the Lessee, Cifiy will have an appraisal performed by a quafified third-pa�ty appraiser to adjusfi the hangar rate fio equal the then #air market value, for this type of property at airports sirr�ilar to the fype ar fypes of property that cqmprise #he prerr�ises. ADVISORY BOARD APPROVAL: On January 21, 202� , fhe A�iation Advisory Board voted to recommend that the City Council approve t�e Hangar and Ground Lease Agreement. �'ort Wor�h Meacl�am Interna#ianal Airport is located in COUNClL DISTRICT 2. FISCAL IR9FORI19ATlOi�IC€RTI�'iCAilOf�: The Director of Finance certifies tha# upon appro�al of fhe above recorr�mendation and execution of the lease, fiunds will be deposited into the Municipal Airport Fund. The Aviation Dspartment (and �inancial Mar�agement Services} is responsi�le for the coliection and deposit of funds due fio the City. Fund Department Accoun# Project Pragram Actir►ity Budget Reference # Amou�t _ 1D ID Year Chartfiefd 2� DM Fund Uepartment Acco�nt Project Program Activity Budget Reference # Amount � ID fD � � Year T[Chartfield 2] � Submitted for Ci�y Nlanager's Office by_ Originating Depar�ment bead: Additiianal Information Con�ac4: Fe�nando Costa {6i22) Roger Venables (5402) Ricardo Barc�IQ (54�03) ATiACbM�i�TS Locatian Map 50S.pdf