HomeMy WebLinkAboutContract 57337 CSC No. 57337
FORT WORTH AVIATION DEPARTMENT
ADMINISTRATION BUILDING OFFICE LEASE
FORT WORTH MEACHAM INTERNATIONAL AIRPORT
This ADMINISTRATION BUILDING OFFICE LEASE AGREEMENT ("Lease") is
made and entered into by and between the CITY OF FORT WORTH ("Lessor"), a home rule
municipal corporation under the State of Texas, acting by and through DANA BURGHDOFF,
its duly authorized ASSISTANT CITY MANAGER, and HELICOPTER INSTITUTE, INC.
("Lessee"), a Texas based, for-profit corporation acting by and through RANDAL ROWLES,
its duly authorized PRESIDENT.
In consideration of the mutual covenants, promises and obligations contained herein, the
parties agree as follows:
1. PROPERTY LEASED.
Lessor demises and leases to Lessee the following real property (hereinafter referred to as
"Premises") in the Administration Building ("Admin Building") at Fort Worth Meacham
International Airport("Airport") in Fort Worth, Tarrant County, Texas: 1,723 square feet
of office space ("Office Space") identified as Suite L40, Lower Level, depicted on
Exhibit "A", attached hereto and hereby made a part of this Lease for all purposes.
2. TERM OF LEASE.
2.1 Initial Term
The Initial Term of this Lease shall commence on the date of execution ("Effective
Date") and expire at 11:59 PM (5) years following the Effective Date. In order to
terminate this Agreement, for any cause stated herein, a party must provide the
other party with written notice of its intent to terminate not less than thirty (30)
days prior to the effective date of such termination.
2.2 Renewal Term
If Lessee performs and abides by all provisions and conditions of this Lease, upon
expiration of the Initial Term of this Lease, Lessee shall have two consecutive
options to renew this Lease, each option for an additional successive term of five
years each (each a "Renewal Term") at a rental rate calculated in accordance with
Section 3.1 of this Lease and on terms and conditions that may be prescribed by
Lessor at the time. Lessee shall notify Lessor in writing of its intent to exercise a
respective option not less than ninety (90) nor more than one hundred eighty (180)
days prior to the expiration of the term then in effect. If Lessee does not exercise its
option for a first Renewal Term within the time frame provided herein, Lessee shall
no longer have any rights or interest in the Premises following the expiration of the
Initial Term and will have no rights to any Renewal Terms thereafter.
OFFICIAL RECORD
CITY SECRETARY
FT.WORTH, TX
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2.3 Holdover.
If Lessee holds over after the expiration of the Initial Term or any Renewal Term,
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 of the Holdover. The rate will be adjusted to equal the
then Fair Market Value, as determined by Lessor's market analysis. In no case shall
the rate be less than the value assessed upon completion of a property appraisal
completed by a third-party vendor that has been approved and secured by Lessor. A
ten percent (10%) increase will be added to the Fair Market Value rate until a new
lease agreement is approved and executed. The holdover period will not exceed six
(6) months from the time the current lease agreement expires. Upon the expiration
of the holdover period,the City may exercise all legal rights and remedies available,
including but not limited to eviction
3. RENT.
3.1. Rates and Adiustments.
Lessee shall pay Lessor rent for the Office Space based on a rental rate of$14.50
per square foot which will be payable in monthly installments of$2,081.96, for an
annual rental rate of $24,983.52 (Twenty-Four Thousand Nine Hundred
Eighty-Three and 52/100 Dollars). On October 1, 2022 and on October 1st of
each year thereafter during both the Initial Term, and any Renewal Term,
Lessee's rental rate shall be adjusted to comply with the rates prescribed for the
Premises by Lessor's Schedule of Rates and Charges in effect at the respective
time. In no event shall Lessee's monthly rental rate exceed the then-current rates
prescribed by Lessor's published Schedule of Rates and Charges for the type or
types of property at the Airport similar to the type or types of property that
comprise the Premises.
In recognition and consideration of the initial Office Space base finish-out costs by
Lessee of approximately 1,723 square feet, which is currently valued at
approximately$172,300 ("Estimated Finish-Out Cost"), Lessor shall grant Lessee
a one-time incentive for the cost of the finish out expenses with a rent-abatement for
the Initial Term not to exceed 50% of the monthly rent for the Office Space
I'I commencing on the Effective Date and ending at the end of the Initial Term or when
agreed upon rent-abatement amount is recovered (whichever comes first) (the
"Tenant Improvement Period"). During the Tenant Improvement Period Lessor
will recognize up to Fifty Thousand Dollars ($50,000) of the Estimated Finish-Out
Cost of the Office Space performed by a licensed contractor. At issue of the
Certificate of Occupancy (CO) all actual finish-out construction costs will be
reviewed and evaluated for possible adjustments downward of the rent-abatement
period. Under no circumstances shall the Tenant Improvement Period exceed the
Initial Term of the Agreement. Lessee shall commence the payment of rent for the
Premises beginning on the Effective Date. Tenant incentives have no cash value and
are forfeited if not used during the rent-abatement period.
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3.2. Payment Dates and Late Fees.
Monthly rent payments under this Lease are due on or before the first (lst) day of
each month. Rent shall be considered past due if Lessor has not received full
payment on or before the 1 Oth day of the month for which payment is due. Lessor
will assess a late penalty charge of ten percent (10%) per month on top of the
entire month's rent for each month in which rent is past due.
4. CONSTRUCTION AND IMPROVEMENTS.
4.1. Mandatory Improvements.
As additional security for this Lease, Lessee covenants and agrees that it shall
construct the Mandatory Improvements (defined below) on the Premises owned by
the City of Fort Worth. The improvements approved and described on Exhibit "B"
shall be referred to as"Mandatory Improvements".
4.1.1. Lessee shall commence construction within three (3) months
following the execution of this Lease, subject to force majeure, of (i)
approximately 1,723 square foot office space within ("Suite L4011).
Construction shall be completed and CO's issued no later than six (6)
months after construction commences, subject to force majeure and any
other delays not caused by Tenant.
4.1.2. Lessee shall complete the Mandatory Improvements according to the
Project Schedule ("Schedule"), as identified in Exhibit`B", subject to force
majeure.
4.1.3. At the completion of construction, Lessee shall provide to Lessor: a
copy of the Certificate of Occupancy, a complete set of Record Drawings
and/or As-Built Drawings in Adobe PDF and AutoCAD formats, and
invoices or similar proof of expenditures indicating Lessee's expenditures.
Lessee shall fully comply with all provisions of this Section 4 in the performance of
any such Mandatory Improvements. Should construction not be completed as
evidenced by the issuance of a CO within the applicable time period set forth above,
Lessee shall be in default of this Lease and Lessor shall have the right to terminate
Lessee's rights to the Premises in its entirety.
In the event that Lessor and Lessee agree to deviate from the terms, provisions,
specifications or conditions of this Lease in any way, an Amendment to this Lease
shall be signed and dated by both Lessor and Lessee and shall be attached to and
made a part of this Lease and shall supersede the previous terms, provisions, and
specifications as specifically identified. Upon issuance of the CO for the Mandatory
Improvements, Lessor shall take full title to and ownership of the Mandatory
Improvements on the Premises (provided, however, that any Leasehold Mortgagee
shall retain its leasehold mortgage claim on Lessee's leasehold interest in and to the
Premises, including, without limitation, the Mandatory Improvements and any other
Improvements), subject to Lessee's leasehold interest pursuant to this Lease.
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The commencement and completion dates in this Section 4.1 are subject to the
provisions of Section 30 below, and any delay by reason of force majeure shall
result in a day-for-day extension of the period for performance, provided that the
party is diligently and continuously pursuing in good faith a remedy to the delay
during such time.
4.2. Discretionary Improvements.
Lessee may, at its sole discretion,perform modifications,renovations, improvements
or other construction work on or to the Premises (which improvements are in
addition to, and do not include, the Mandatory Improvements) (collectively,
"Improvements") so long as it first submits all plans, specifications and estimates
for the costs of the proposed work in writing and also requests and receives in
writing approval from Lessor's Director of Airport Systems or authorized
representative ("Director"), and such approval shall not be unreasonably withheld,
conditioned, or delayed. 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 completion of construction of such
Improvements or earlier termination of this Lease, provided that trade fixtures shall
remain the property of Lessee and may be removed so long as Lessee repairs any
damage caused thereby.
4.3. Process for Approval of Plans.
Lessee's plans for Improvements shall conform 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 presented for review.
4.4. Documents.
III 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.
4.5. Bonds Required of Lessee.
Prior to the commencement of any Mandatory Improvements or Improvements,
Lessee shall deliver to Lessor a bond, executed by a corporate surety in accordance
with Texas Government Code, Chapter 2253, as amended, in the full amount of each
construction contract or project. The bond 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
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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.
In lieu of the required bond, Lessee may provide Lessor with a cash deposit through
an escrow account in an amount equal to 125% of the full amount of each
construction contract or project. The Escrow account shall be from a financial
institution in the Dallas-Fort Worth Metropolitan Area which is insured by the
Federal Deposit Insurance Corporation and acceptable to Lessor. The interest
earned on the escrow account shall be the property of Lessee and Lessor shall have
no rights in such interest. If Lessee fails to complete the respective Mandatory
Improvement or Improvement, or if claims are filed by third parties on grounds
relating to such Mandatory Improvement or Improvement, Lessor shall be entitled to
draw down the full amount of Lessee's cash deposit within the escrow account and
apply the proceeds to complete the Mandatory Improvements or Improvements or
satisfy the claims, provided that any balance shall be remitted to Lessee, including
any interest that had accrued. If the Lessee chooses to provide a cash deposit through
an escrow account in lieu of the required bond, the Lessee, Lessor and the financial
institution maintaining the escrow account will enter into a separate escrow
agreement prior to the commencement of any Mandatory Improvement or
Improvement.
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. UTILITIES.
Lessor agrees and covenants that it will pay for all utilities in use on the Premises, with
the exception of telephone utilities and internet service. Lessee agrees that all
electrically-operated equipment which may be used on the Premises shall fully comply
with the City of Fort Worth Mechanical, Electrical, Plumbing, Fire and Building Codes,
as they exist or may hereafter be amended.
6. MAINTENANCE AND REPAIRS.
6.1. Maintenance and Repairs by Lessor.
Lessor shall provide janitorial services to the Premises. Lessor agrees to perform
minor repairs and maintenance on a timely basis as required by the ordinary use
of the Premises under the terms of this Lease and which are not caused by any
violation thereof by Lessee. Lessor shall have the right and privilege, through
its officers, agents, servants or employees to inspect the Premises at any time. If
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Lessor determines that Lessee is responsible for any maintenance or repairs
required on the Premises, it shall notify Lessee in writing. Lessee agrees to
undertake such maintenance or repair work within thirty (30) calendar days of
receipt of notice. If Lessee fails to undertake the maintenance or
repairs recommended within this time, Lessor may, in its discretion, perform the
necessary maintenance or repairs on behalf of Lessee. In this event, Lessee will
reimburse Lessor for the cost of the maintenance or repairs, and payment will be
due on the date of Lessee's next monthly rental payment following completion of
the repairs.
6.2. Maintenance and Repairs by Lessee.
Lessee agrees to keep and maintain the Premises in a good, clean and sanitary
condition at all times. Lessee covenants and agrees that it will not make or suffer
any waste of the Premises. Lessee shall not allow any holes to be drilled or made
in the brick, plaster or cement work. Lessee will not pile or store boxes, cartons,
barrels or other similar items in a manner that is unsafe or unsightly. Upon
termination of this Lease, Lessee agrees to return the Premises to Lessor in
the same condition as originally received, subject to ordinary wear and tear
consistent with normal use over time. Lessee is responsible for all damages
caused by the negligence or misconduct of Lessee, its agents, servants, employees,
contractors,subcontractors,patrons, licensees, invitees or trespassers.
For any portion of the Premises located in the basement of the Administration
Building, Lessee shall provide, at Lessee's own expense, and use covered metal
receptacles for the temporary storage of all trash and garbage and arrange and pay
for the sanitary transport and permanent disposal away from the Airport of all of
Lessee's trash, garbage and refuse.
6.3. Inspection.
Lessor, through its officers, agents, servants or employees, reserves the right to
enter the Premises at any time in order to perform any and all duties or obligations
which Lessor is authorized or required to do under the terms of this Lease or to
perform its governmental duties under federal, state or local rules, regulations and
laws (including, but not limited to, inspections under applicable Health,
Mechanical, Building, Electrical, Plumbing, and Fire Codes, or other health, safety
and general welfare regulations). Lessee will permit the Fire Marshal of the City
of Fort Worth or his agents to make inspection of the Premises at any time, and
Lessee will comply with all recommendations made to Lessee by the Fire Marshal
or his agents to bring the Premises into compliance with the City of Fort Worth
Fire Code and Building Code provisions regarding fire safety, as such provisions
exist or may hereafter be added or amended. Lessee shall maintain in a proper
condition accessible fire extinguishers of a number and type approved by Fire
Underwriters for the particular hazard involved. Lessor shall provide Lessee with
advance notice of inspection when reasonable under the circumstances.
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7. ACCEPTANCE OF PREMISES.
Lessee agrees and covenants that it has inspected the Premises and is fully advised of its
own rights without reliance upon any representation made by Lessor concerning the
condition of the Premises. Lessee accepts the Premises in its present condition as
satisfactory for all purposes set forth in this Lease.
9. PARKING.
Lessee shall have the right to use the designated public parking areas to the extent
available and in accordance with policies established by the Director or
authorized representative, for the parking of company vehicles and the vehicles of its
employees, licensees or invitees, subject to all ordinances and regulations of the City of
Fort Worth and all other applicable laws.
10. USE OF PREMISES.
Lessee agrees to use the Premises exclusively for the purpose proposed to and approved
by the Director. Any proposed change to the use and activity within the lessee space must
be approved by the Director prior to the change occurring.
11. SIGNS.
Lessee may, at its own expense and with the prior written approval of the Director or
authorized representative, create, install, and maintain signage. Such signs, however,
must be in keeping with the size, color, location and manner of display of other signs
throughout the Administration Building. In addition, Lessee may not install a sign
outside the Administration Building on Lessor's property without prior written approval
by the Director or authorized representative as to the sign's placement, appearance,
construction, and conformity with applicable City Code restrictions.
The Meacham Administration Building's location sign on Main Street is part of the
airport's Unified Signage Agreement. All associated signage panels must be approved
and procured by the lessor. The lessee will remit payment in advance to the lessor for the
sign panel cost. Sign space on the front entrance monument sign is first-come, first-
served. There is no guarantee of sign space.
Lessee shall maintain all signs in a safe, neat, sightly and physically good condition.
Lessee agrees to pay Lessor for any damage, injury or necessary repairs to the Premises
resulting from the installation, maintenance or removal of any such sign. Lessee also
agrees to remove any signs at its own expense immediately upon receipt of instructions
for such removal from the Director or authorized representative.
12. RIGHTS AND RESERVATIONS OF LESSOR.
Lessor hereby retains the following rights and reservations:
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12.1. All fixtures and items permanently attached to any structure on the Premises
belong to Lessor, and any additions or alterations made thereon, shall
immediately become the property of Lessor.
12.2. Lessor reserves the right to take any action it considers necessary to protect the
aerial approaches of the Airport against obstruction, including, but not limited to,
the right to prevent Lessee from erecting or permitting to be erected any building
or other structure which, in the opinion of Lessor, would limit the usefulness of
the Airport, constitute a hazard to aircraft or diminish the capability of existing or
future avigational or navigational aids used at the Airport.
12.3. Lessor reserves the right to close temporarily the Airport or any of its facilities
for maintenance, improvements, safety or security of either the Airport or the
public or for any other cause deemed necessary by Lessor. In this event, Lessor
shall in no way be liable for any damages asserted by Lessee, including, but not
limited to, damages from an alleged disruption of Lessee's business operations.
12.4. This Lease shall be subordinate to the provisions of any existing or future
agreement between Lessor and the United States Government which relates to the
operation or maintenance of the Airport and is required as a condition for the
expenditure of federal funds for the development, maintenance or repair of
Airport infrastructure.
12.5. During any war or national emergency, Lessor shall have the right to lease any
part of the Airport, including its landing area, to the United States Government.
In this event, any provisions of this instrument which are inconsistent with the
provisions of the lease to 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.
12.6. Lessor covenants and agrees that during the term of this Lease it will operate
and maintain the Airport and its facilities as a public airport consistent with and
pursuant to the Sponsor's Assurances given by Lessor to the United States
Government through the Federal Airport Act; and Lessee agrees that this Lease
and Lessee's rights and privileges hereunder shall be subordinate to the Sponsor's
Assurances.
13. INSURANCE.
13.1 Types of Coverage and Limits.
Lessee shall procure and maintain at all times, in full force and effect, a policy or
policies of insurance as specified 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 following insurance coverage at the limits specified herein:
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• Commercial General Liability:
$300,000.00 per occurrence
In addition, Lessee shall be responsible for all insurance to any approved
construction, improvements, modifications or renovations on or to the Premises
and for personal property of Lessee or in Lessee's care, custody or control.
13.2. Adjustments to Required Coverage and Limits.
Insurance requirements, including additional types and limits of coverage and
increased limits on existing coverages, are subject to change at Lessor's option,
and Lessee will accordingly comply with such new requirements within thirty (30)
days following notice to Lessee.
13.3. Certificates.
As a condition precedent to the effectiveness of this Lease, Lessee shall furnish
Lessor with a certificate of insurance signed by the underwriter as proof that it has
obtained the types and amounts of insurance coverage required herein, and Lessee
shall submit a similar certificate of insurance annually to City on the anniversary
date of the execution of this agreement. Lessee hereby covenants and agrees that
not less than thirty (30) days prior to the expiration of any insurance policy
required hereunder, it shall provide Lessor with a new or renewal certificate of
insurance. In addition, Lessee shall, on demand, provide Lessor with evidence
that it has maintained such coverage in full force and effect.
13.4. Additional Requirements.
Lessee shall maintain its insurance with underwriters authorized to do business in
the State of Texas and which are satisfactory to Lessor. The policy or policies of
insurance shall be endorsed to cover all of Lessee's operations at the airport and to
provide that no material changes in coverage, including, but not limited to,
cancellation, termination, nonrenewal or amendment, shall be made without thirty
(30) days'prior written notice to Lessor.
14. INDEPENDENT CONTRACTOR.
It is expressly understood and agreed that Lessee shall operate as an independent
contractor as to all rights and privileges granted herein, and not as an agent,
representative or employee of Lessor. Lessee shall have the exclusive right to control the
details of its operations and activities on the Premises and shall be solely responsible for
the acts and omissions of its officers, agents, servants, employees,
contractors, subcontractors, patrons, licensees and invitees. Lessee acknowledges that the
doctrine of respondeat superior shall not apply as between Lessor and Lessee, its officers,
agents, employees, contractors and subcontractors. Lessee further agrees that nothing
herein shall be construed as the creation of a partnership or joint enterprise between
Lessor and Lessee.
v
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15. INDEMNIFICATION.
LESSEE HEREBYASSUMES ALL LIABILITYAND RESPONSIBILITY FOR PROPERTY
LOSS, PROPERTY DAMAGE AND/OR PERSONAL INJURY OF ANY KIND,
INCLUDING DEATH, TO ANYAND ALL PERSONS, OF ANY KIND OR CHARACTER,
WHETHER REAL OR ASSERTED, ARISING OUT OF OR IN CONNECTION WITH
THE USE OF THE AIRPORT UNDER THIS LEASE OR WITH THE LEASING,
MAINTENANCE, USE, OCCUPANCY, EXISTENCE OR LOCATION OF
THE PREMISES, EXCEPT TO THE EXTENT CAUSED BY THE NEGLIGENT ACTS OR
OMISSIONS OR INTENTIONAL MISCONDUCT OF LESSOR..
LESSEE COVENANTS AND AGREES TO, AND DOES HEREBY, INDEMNIFY,
HOLD HARMLESS AND DEFEND LESSOR, ITS OFFICERS, AGENTS, SERVANTS
AND EMPLOYEES, FROM AND AGAINST ANY AND ALL CLAIMS OR LAWSUITS
FOR EITHER PROPERTY DAMAGE OR LOSS (INCLUDING ALLEGED DAMAGE OR
LOSS TO LESSEE'S BUSINESS AND ANYRESULTING LOST PROFITS) AND/OR
PERSONAL INJURY, INCLUDING DEATH, TO ANY AND ALL PERSONS, OF ANY
KIND OR CHARACTER, WHETHER REAL OR ASSERTED, ARISING OUT OF OR IN
CONNECTION WITH THE USE OF THE AIRPORT UNDER THIS LEASE OR WITH
THE LEASING, MAINTENANCE, USE, OCCUPANCY, EXISTENCE OR LOCATION
OF THE PREMISES, EXCEPT TO THE EXTENT CAUSED BY THE NEGLIGENT ACTS
OR OMISSIONS OR INTENTIONAL MISCONDUCT OF LESSOR.
LESSEE ASSUMES ALL RESPONSIBILITY AND AGREES TO PAY LESSOR FOR ANY
AND ALL INJURY OR DAMAGE TO LESSOR'S PROPERTY WHICH ARISES OUT OF
OR IN CONNECTION WITH ANY AND ALL ACTS OR OMISSIONS OF LESSEE, ITS
OFFICERS, AGENTS, EMPLOYEES, CONTRACTORS, SUBCONTRACTORS,
LICENSEES, INVITEES, PATRONS OR TRESPASSERS, EXCEPT TO THE EXTENT
CAUSED BY THE NEGLIGENT ACTS OR OMISSIONS OR INTENTIONAL
MISCONDUCT OF LESSOR.
LESSOR DOES NOT GUARANTEE POLICE PROTECTION TO LESSEE OR ITS
PROPERTY. LESSOR SHALL NOT BE RESPONSIBLE FOR INJURY TO ANY PERSON
ON THE PREMISES OR FOR HARM TO ANY PROPERTY WHICH BELONGS TO
LESSEE, ITS OFFICERS, AGENTS, SERVANTS, EMPLOYEES, CONTRACTORS,
SUBCONTRACTORS, LICENSEES, INVITEES OR PATRONS, AND WHICH MAYBE
STOLEN DESTROYED OR IN ANY WAY DAMAGED; AND LESSEE HEREBY
INDEMNIFIES AND HOLDS HARMLESS LESSOR, ITS OFFICERS,
AGENTS, SERVANTS AND EMPLOYEES FROM AND AGAINST ANY AND ALL SUCH
CLAIMS, EXCEPT TO THE EXTENT CAUSED BY THE NEGLIGENT ACTS OR
OMISSIONS OR INTENTIONAL MISCONDUCT OF LESSOR..
16. WAIVER OF CHARITABLE IMMUNITY OR EXEMPTION.
If Lessee, as a charitable association, corporation, partnership, individual enterprise or
entity, claims immunity to or an exemption from liability for any kind of property damage
or personal damage, injury or death, Lessee hereby expressly waives its rights to plead
defensively any such immunity or exemption as against Lessor.
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17. TERMINATION.
In addition to termination rights contained elsewhere in this Lease, Lessor shall have the
right to terminate this Lease as follows:
17.1. Failure by Lessee to Pay Rent,Fees or Other Charges.
If Lessee fails to pay any rent, fees or other charges due under this Lease, Lessor
shall deliver to Lessee a written invoice and notice to pay the invoice within ten (10)
calendar days. If Lessee fails to pay the balance outstanding within such time,
Lessor shall have the right to terminate this Lease immediately.
17.2. Termination Due to Aeronautical Need for Leasehold
Due to the Non-Aeronautical related use of the Premises under this Lease, in the
unlikely event that an aeronautical use for the leased premises is deemed necessary
by Lessor,Lessor shall have the right to terminate this Lease and shall provide thirty
(30) days written notice to vacate the premises.
17.3. 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.
17.4. 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 of this Lease by Lessor, unless such non-use is caused by Force
Majeure, as set forth in Section 30 below.
17.5. 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 17.1, 17.2 or 17.3 of this
Lease, Lessee shall be liable for and shall pay to Lessor all rent due Lessor for the
remainder of the term then in effect as well as all arrearages of rentals, fees and
charges payable hereunder. In no event shall a reentry onto or reletting of the
Premises by Lessor be construed as an election by Lessor to forfeit any of its rights
under this Lease.
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17.6. 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 Lessor, its agents, servants, employees or representatives, which
may stem from Lessor's termination of this Lease or any act incident to Lessor's
assertion of its right to terminate or Lessor's exercise of any rights granted
hereunder.
18. NOTICES.
Notices required pursuant to the provisions of this Lease shall be conclusively determined
to have been delivered when (1) hand-delivered to the other party, its agents, employees,
servants or representatives, or (2) deposited in the United States Mail, postage prepaid,
addressed as follows:
To LESSOR: TO LESSEE:
City of Fort Worth Helicopter Institute, Inc.
Department of Aviation Randal Rowles
201 American Concourse, Suite 330 101 Aviator Drive
Fort Worth, Texas 76106-2749 Fort Worth, TX 76179
19. ASSIGNMENT AND SUBLETTING.
Lessee shall not assign, sell, convey, sublet or transfer any of its rights,privileges, duties
or interests granted by this Lease without the advance written reasonable consent of
Lessor, such consent shall not be unreasonably conditioned, withheld, or delayed. Any
such transaction attempted by Lessee without prior written consent by Lessor shall be
null and void. If Lessor consents to any such transaction, the respective assignee or
sublessee shall consent to comply in writing with all terms and conditions set forth in this
Lease the same as if that party had originally executed this Lease.
20. LIENS BY LESSEE.
Lessee acknowledges that it has no authority to engage in any act or to make any contract
which may create or be the foundation for any lien upon the property or interest in the
property of Lessor. If any such purported lien is created or filed, Lessee, at its sole cost
and expense, shall liquidate and discharge the same within thirty (30) days of such
creation or filing. Lessee's failure to discharge any such purported lien shall constitute a
breach of this Lease and Lessor may terminate this Lease immediately.
However, Lessee's financial obligation to Lessor to liquidate and discharge such lien shall
Fort Worth Meacham International Airport Administration Building Office Lease Agreement P
HELICOPTER INSTITUTE.—Suite L40 Page 12 of 21
continue in effect following termination of this Lease and until such a time as the lien is
discharged.
21. 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.
22. COMPLIANCE WITH LAWS, ORDINANCES, RULES AND REGULATIONS.
Lessee covenants and agrees that it shall not engage in any unlawful use of the Premises.
Lessee further agrees that it shall not permit its officers, agents, servants, employees,
contractors, subcontractors,patrons, licensees or invitees to engage in any unlawful use of
the Premises and Lessee immediately shall remove from the Premises any person
engaging in such unlawful activities. Unlawful use of the Premises by Lessee itself shall
constitute an immediate breach of this Lease.
Lessee agrees to comply with all federal, state and local laws; all ordinances, rules and
regulations of the City of Fort Worth and the City of Fort Worth Police, Fire and Health
Departments; all rules and regulations established by the Director; and all rules and
regulations adopted by the City Council pertaining to the conduct required at airports
owned and operated by the City, as such laws, ordinances, rules and regulations exist or
may hereafter be amended or adopted. If Lessor notifies Lessee or any of its officers,
agents, employees, contractors, subcontractors, licensees or invitees of any violation of
such laws, ordinances, rules or regulations, Lessee shall immediately desist from and
correct the violation.
22.1. Compliance with Minimum Standards and Schedule of Rates and Charges:
Lessee hereby agrees to comply at all times with the City's Minimum Standards, as
may be adopted by the City Council from time to time. Lessee shall be bound by
any charges adopted in the City's Schedule of Rates and Charges, as may be adopted
by the City Council from time to time.
23. NON-DISCRIMINATION COVENANT.
Lessee, for itself, its personal representatives, successors in interest and assigns, as part of
the consideration herein, agrees as a covenant running with the land that no person shall
be excluded from participation in or denied the benefits of Lessee's use of the Premises
on the basis of age, 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 age, race, color, national
origin, religion, disability, sex, sexual orientation, transgender, gender identity or gender
expression.
Fort Worth Meacham International Airport Administration Building Office Lease Agreement
HELICOPTER INSTITUTE.—Suite L40 Page 13 of 21
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.
24. LICENSES AND PERMITS.
Lessee shall, at its sole expense, obtain and keep in effect all licenses and permits
necessary for the operation of its business at the Airport.
25. GOVERNMENTAL POWERS.
It is understood and agreed that by execution of this Lease, the City of Fort Worth does
not waive or surrender any of its governmental powers.
26. NO WAIVER.
The failure of Lessor to insist upon the performance of any term or provision of this
Lease or to exercise any right granted herein shall not constitute a waiver of Lessor's right
to insist upon appropriate performance or to assert any such right on any future occasion.
27. VENUE.
Should any action, whether real or asserted, at law or in equity, arise out of the terms of
this Lease or by Lessee's operations on the Premises, venue for such action shall lie in
state courts in Tarrant County, Texas, or the United States District Court for the Northern
District of Texas, Fort Worth Division. This Lease shall be construed in accordance with
the laws of the State of Texas.
28. ATTORNEYS' FEES.
In the event there should be a breach or default under any provision of this Lease and
other expenses for the collection of rent
either party should retain attorneys or incurt p , fees
or charges, or the enforcement of performance or observances of any covenant, obligation
or agreement, Lessor and Lessee agree that each party shall be responsible for its own
attorneys' fees.
29. SEVERABILITY.
If any provision of this Lease shall be held to be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in any way be
affected or impaired.
Fort Worth Meacham International Airport Administration Building Office Lease Agreement
HELICOPTER INSTITUTE.—Suite L40 Page 14 of 21
30. FORCE MAJEURE.
Lessor and Lessee shall exercise every reasonable effort to meet their respective
obligations as set forth in this Lease, but shall not be held liable for any delay in or
omission of performance due to force majeure or other causes beyond their reasonable
control, including, but not limited to, compliance with any government law, ordinance or
regulation, acts of God, acts of omission, fires, strikes, lockouts, national disasters, wars,
riots, material or labor restrictions by any governmental authority, transportation
problems and/or any other cause beyond the reasonable control of the parties.
31. HEADINGS NOT CONTROLLING.
Headings and titles used in this Lease are for reference purposes only and shall not be
deemed a part of this Lease.
32. ENTIRETY OF AGREEMENT.
This written instrument, including any documents incorporated herein by reference,
contains the entire understanding and agreement between Lessor and Lessee, its assigns
and successors in interest, as to the matters contained herein. Any prior or
contemporaneous oral or written agreement is hereby declared null and void to the extent
in conflict with any provisions of this Lease. The terms and conditions of this Lease shall
not be amended unless agreed to in writing by both parties and approved by the
City Council of Lessor.
33. SIGNATURE AUTHORITY.
The person signing this agreement hereby warrants that he/she has the legal authority to
execute this agreement on behalf of the respective party, and that such binding authority
has been granted by proper order, resolution, ordinance or other authorization of the
entity. Each party is fully entitled to rely on these warranties and representations in
entering into this Agreement or any amendment hereto.
[Signature Pages to Follow]
Fort Worth Meacham International Airport Administration Building Office Lease Agreement
HELICOPTER INSTITUTE.—Suite L40 Page 15 of 21
IN WITNESS WHEREOF,the parties hereto have executed this Agreement in multiples
on this the day of 52022.
CITY OF FORT WORTH:
By:Dana Burghdoff(M r31,202 1 :57 CDT)
Dana Burghdoff
Assistant City Manager
Date: Mar 31,2022
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 Dana Burghdoff, known to me to be the person whose name is
subscribed to the foregoing instrument, and acknowledged to me that the same was the act of the
City of Fort Worth and that he executed the same as the act of the City of Fort Worth for the
purposes and consideration therein expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this day
52022. Mar 31, 2022
Selena Ala(Mar 31,2022 17:58 CDT)
Notary Public in and for the State of Texas
APPROVED AS TO FORM ATTEST:
AND LEGALITY:
J�hheffe S. Goo��lll
By:
f/f' By: Jannette S.Goodall(Apr 1,2022 09:28 CDT)
Thomas Royce Hansen Jannette S. Goodall
Assistant City Attorney City Secretary
�OF°FORr46 AT
M&C: 29- 623�' pro° °opod
M&C Approval Date: � 0'o o io
Form 1295: 2- cJC�J�3 ��� o°° °00000000000000 o
anti nEXASapp �PRYPv6 SELENA ALA
_ Notary Public
+®* STATE OF TEXAS
Notary I.D. 132422528
My Comm. Exp. Mar.31,2024
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
Fort Worth Meacham International Airport Administration Building Office Lease Agreement
HELICOPTER INSTITUTE.—Suite L40 Page 16 of 21
Contract Compliance Manager:
By signing, I acknowledge that I am the person responsible for the monitoring and
administration of this contract, including ensuring all performance and reporting requirements.
Barba a d
Real Property Manager
LESSEE: ATTEST:
HELICOP ER INSTITUTE
ByRvdg—
! eandal /. B
Rowles
esident
Date: 2 2 k22-
STATE OF TEXAS §
COUNTY OF rjjjMk §
BEFORE ME,the undersigned authority, a Notary Public in and for the State of Texas, on
this day personally appeared Randal Rowles 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
HELICOPTER INSTITUTE,INC. and that he executed the same as the act of HELICOPTER
INSTITUTE,INC. for the purposes and consideration therein expressed and, in the capacity,
therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of
,2022.
ASHLEY THOMPSON MIKEL Notary Public i nd for the State of Texas
Notary ID#1 3 20 3 6624
My Commission Expires
June 4, 2023
OFFICIAL RECORD
CITY SECRETARY
FT.WORTH, TX
Fort Worth Meacham Intemational Airport Administration Building Office Lease Agreement
HELICOPTER INSTITUTE.—Suite L40 Page 17 of 21
EXHIBIT "A"
. . .
AVAIL
.SURE
AVAIL 126
• SUITE AVAIL
L20 SUITE
unur
L92
nnn A&L. ■
SUITE
IL.WylldQu- L41
■
AVAIL
SUITE AVAIL
Lit SURE L40
is
0
1 LOWER LEVEL
TENANT SPACE
Hahnfeld architects 200F3ai1eyAvrl„ Suite?00
MEACHAM .OFFICE BUILDING Hoffer planners 81 7.9P-1, , Tr xw; 70310'
FORT WORTH.TX Stanford interiors tax 817.302,0692
Fort Worth Meacham International Airport Administration Building Office Lease Agreement
HELICOPTER INSTITUTE.—Suite LAO Page 18 of 21
EXHIBIT "B"
MANDATORY IMPROVEMENTS
Approximately 1,723 square feet of office space
• All mandatory improvements for Suite L40 must be completed in accordance with Section
4.
• Construction of office space finish-out will be completed within six(6)months of the
execution of the Agreement and approved by the Director or authorized representative.
• Construction materials will be in keeping with building standard unless otherwise approved.
1)CONSTRUCTION
a. Frame all walls and offices according to drawings,using metal studs
b. Install 5/8" sheetrock on any walls installed during finish-out
c. Install ceiling grid and acoustical ceiling tiles
2) SPRINKLERS
Extend existing wet-pipe system and install drops and sprinklers based on light hazard
coverage requirements.Any new pendent sprinklers will match building standard.
3)ELECTRICAL
a.Provide and install receptacles to meet code requirements
b. Provide and install 2x4 led lights
5)HVAC
a. Provide and install flex duct,diffusers,plenums to install on existing coil
blowers.
b. Flex duct will be used throughout the space, secondary to other piping above the ceiling.
6)FLOORING
a.Install Carpet tiles consistent with building standards through main office area.
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Fort Worth Meacham International Airport Administration Building Office Lease Agreement
HELICOPTER INSTITUTE.—Suite L40 Page 19 of 21
EXHIBIT "C"
INSURANCE REQUIREMENTS
FORT FORTH
�r
n11C1 ON EXHIBIT B-MINIMUM INSURANCE REQUIREMENTS
Commercial Hangarkeepers Envrwrm Akaa t and Pas
ental Automobile Lability (To
Categ ry Property General Impairment Include Hired&Non�vned
Insurance Liability Lialt ty Liab:.ty L ablity st�g-r Vehrc aes e
}
Fixed Base Operators(FBO'sj Yes 55.000.000 $5,000,00D 51,000,DDO S I W0.000
A'vcraft Maintnatce Operator and
Avion„^s or Instrument Maintenance 51,CO3,000 $1,000.000 S LDO0,000
Operator-Piston
Arerat Maintenance Operator and
Avioncs or Instrument Maintenance S5,CA7,000 S1,000,000 S 1.ODO,000
O or Turbne
Avionos or Instrument Maintenance
Operator{Bench work Only} = $1,000,000 5 1 DDD,000
A•cra`t Rental or Flight Tran-ng b1,000,D05' S1.D00,000+aourrence 5 I.OD0,000
Operator S 100.DDTpas-enger
Aicraft Charter orA'voraft 51,DDD,Cr6 SS.DOD,000Ioccurrence $ I,000,000
Management Operator $500,0DO'passenger
Akra't Sales Operator 51,0OO.DDD' 51.DDO,0D0 3I.DDD,0007occumermce 5 1..DDD,000
S 100,DDDpassenger
A-rcrA Storage Operaor SI.OD0.0-30 51,000.DDD
55,000,ODD $5,DM,000' S 1.DDD,000
Aviation Service Sole Proprietor E1,000,000` 31.DD0,00D1occurrence $ 260,000
$iO3,DOO passenger
Other CommervAAeratautcal $1,000.000 S300.071-occurrenoe S 1.000,000
Activities
Temporary Specialized Aviation $1,000,000 S30O,Orr-Toocurrence 5 I.ODD,000
Service O actor
Non-Commercial Hanglix Lessee $1,000 Q03' 5300.0031oc currence S 1,DD0,000
Non-CernmercialFlying Club S1.DDD,0007 31.OD0,000roccurrence S 1,D0D,000
SICO.000 s
Non-Co ercialUet elf-FandlaAg St,DDD,CO3 $1.030,000 S300.C-0O:oecurrence S 1,000,000
Non-Commercial Self-Fueling
Permit a $1,DDD,000r 5500,0ro S300,CO3.1oceurrence $ 250,000
Ahemative fuels e. .m
Box Hangar,T-Hangar,Co imurtdy = 51400,000 $300 003Foocuirence $ 250,000
Hangar
Other Insurance requirements subject to determination byA~iatcn Department and Rsk Management.
Addaional Insurance Requirements
.Lessees polices are to be phnwy to army other valid and collectible insurance available to the City
•Ali policies sha:9 include a Waiver of Subrogation n favor a Lire Cary(Temporary SASO must also inducte Airport Lessee)
-The City of Fort Worth 441 be named as Adotional Insured(Tempyary SASO mast also include Acpoct Lessee)
•Pdicies shall have no excluseons by endorsement,which,neither nullify or amend the regd'red Ines of coverage,nor decrease the limns of sa tl coverage
'Coverage per aircraft should be equivalent to the average aircraft value at one time and coverage per occurrence should be equivalent to lne average of the
maximum value of total aircraft at one tme,but not less than the amount noted above
`Must include Negligent Instruction Coverage
'If aircraft storage operator's prauarrg subleasing space for aircraft storage
r Only required for those providing night insiructco
Depends on terms of the lease agreement
e if vehicle parked Iandside-State min mums would apply
'Coverage may be provded by endorsement
Aviation Minimum Standards, City of Fort Worth A"cn Department(06,1)3120141
Fort Worth Meacham Intemational Airport Administration Building Office Lease Agreement
HELICOPTER INSTITUTE.—Suite L40 Page 20 of 21
DEFINITIONS:
Coverage for the Building includes(but is not limited to)the building and structures,completed additions to covered
buildings,outdoor fixtures,permanently installed fixtures,machinery and equipment The building material used to
maintain and service the irsured's premises is also insured. Business Personal Property owned by the insured and
used in the nsured's business is covered for direct loss or damage. The coverage includes(but is not limited to)
furniture and fixtures,stock,improvements and betterments,teased property for which you have a contractual
obligation to insure and several other similar business property items when not specifically excluded from coverage_
The policy is also designed to protect the insured against joss or damage to the Personal Property of Others while
in the insured's care,custody and control.
PROPERTY INSUR:t,NCE
Business Income(sometimes called Business Irterruption)affords protection against the loss of earnings of a
business during the time required to rebuild or repair covered property damaged or destroyed by fire or some other
insured cause of loss.
Extra Expense allows coverage for those additional expenses over and above normal operating expenses paid due
to damage to covered property from a covered cause of bss. These expenses could include rent,utilities,corning
expenses,telephone,advertising and labor.
This coverage protects the insured for bodily injury or property damage to the third parties,for which they are legally
liable.The policy covers accidents occurring on the premises or away from the premises. Coverage is provided for
injury or damages arising out of goods or products made or sold by the named insured. Coverage is afforded for
the named insured and employees of the named insured;however,several individuals and organizations other than
the named insured may be covered depending upon certain circumstances specified in the policy. In addrlion to the
limns,the policy provides supplemental payments for attorney fees.court costs and other expenses associated with
a claim or the defense of a Lability suit
Coverage A-Bodily Injury and Property Damage Liabirrrty
COM4IERCI.a,L GENERAL Bodily Injury means physical iriury.sickness or disease,ircludng death. Property Damage means physical injury
LIABILITY to tangible property,including the resulting loss of use of that property.
Coverage B-Personal Injury and Advertising Injury Liability
Personal Injury means false arrest,malicious prosecution,wrongful entry or eviction,libel,slander and violations of
a person's right of privacy. Advertising Injury means libel,slander,disparagement violations of a person's right of
privacy,misappropriation and copyright infringement
Coverage C-Medical Payments
Medical Payments means medical expenses for bodily injury caused by an accident.
HANGARIvEEPERS Insures the hanger operator for legal obirgations to pay damages due to loss to an aircraft that occurs when the
aircraft is in the care,custody or control of the insured for safekeeping,storage,service or repair.Coverage
LIABILITY. extends to liability claims involving an aircraft's loss of use.
Insures the pollution exposure associated with the insured's property and operations,Including costs of cleanup and
EN IROMENTAL remedial or corrective action due to a third-party demand or a government,order.The Pollution exclusion in general
liability insurance effectively eliminates coverage for damages for bodily injury.property damage and cleanup costs
IMPIRMENT LIABILITY arising from most types of pollution events.Because of this,customized protection for the pollution exposure of
numerous insureds in this category is essential.
Coverage geared specifically to the operation of aircraft and the risks involved in aviation.Aviation insurance
policies are distinctly different finm those for other areas of transportation and tend to incorporate aviation
AIRCRAFT AND terminology,as well as terminology,limits and clauses specific to aviation insurance.Passenger fabiiry protects
PASSENGER LIABILITY passengers riding in the accident aircraft who are injured or killed.In manycountries this coverage is mandatory
only for commercial or large aircraft Coverage is often sold on a"per-seat'basis,with a specified limit for each
passengerseat
The liability coverage of the Business Auto Policy provides protection against legal liability arising out of the
AUTOMOBILE LIABILITY ownership,maintenance or use of any insured automobile. The insuring agreement agrees to pay for bedity injury
ITO INCLUDE HIRED& or property damage for which the insured is legally responsible because of an automobile accident. The policy also
NON-OI1 NED VEHICLES) defense
that,in addition to the payment of damages,the insurer also agrees to defend the insured for all legal
defense cost The defense is in addition to the policy limits.
An agreement between two parties in which one party agrees to wane subrogation rights against another in the
IVAIVBR OF event of a loss. The intent is to prevent one party's insurer from pursuing subrogation against the other party.
SUBROGATION
Aviation Minimum Standards, City of Fart Worth Aviation Departrnent(OM3&'2014)
Fort Worth Meacham International Airport Administration Building Office Lease Agreement
HELICOPTER INSTITUTE.—Suite L40 Page 21 of 21
3/30/22,8:49 AM M&C Review
Official site of the City of Fort Worth,Texas
CITY COUNCIL AGENDA FORTIS
Create New From This M&C
DATE: 3/29/2022 REFERENCE**M&C 22- LOG 55FTW HELICOPTER INSTITUTE ADMIN
NO.: 0235 NAME: BUILDING LEASE SUITE L40
CODE: C TYPE: CONSENT PUBLIC NO
HEARING:
SUBJECT: (CD 2) Authorize the Execution of an Administration Building Office Lease Agreement
with Helicopter Institute, Inc. for Suite L40 at Fort Worth Meacham International Airport
RECOMMENDATION:
It is recommended that the City Council authorize the execution of an administration building office
lease agreement with Helicopter Institute, Inc. for Suite L40 at Fort Worth Meacham International
Airport.
DISCUSSION:
Staff received a request from Helicopter Institute, Inc. (Helicopter Institute) to lease approximately
1723 square feet of lower level office space at Meacham Administration Building located at Fort
Worth Meacham International Airport.
Helicopter Institute has agreed to execute a lease agreement with an initial term of five (5) years. If
Helicopter Institute performs and abides by all provisions and conditions of the Lease, upon
expiration of the initial term of this Lease, Helicopter Institute shall have two consecutive options to
renew the Lease, each option for an additional successive term of five (5) years, bringing the total
lease term to fifteen (15) years. The initial term of the Lease shall commence upon execution of the
lease document by all parties (Effective Date).
Helicopter Institute has elected to perform, at its sole cost, the tenant finish-out of Suite L40. In
recognition and consideration of the initial office space base finish-out costs by Helicopter
Institute of approximately 1,723 square feet, which is currently estimated at approximately
$172,300.00, the City has agreed to a one-time incentive for the cost of the finish out expenses
with a rent-abatement for the initial term not to exceed fifty percent (50\%) of the monthly rent for
the office space commencing on the effective date and ending at the end of the initial term or when
agreed upon rent-abatement amount is recovered (whichever comes first) (the Tenant
Improvement Period). During the Tenant Improvement Period the City will recognize up to Fifty
Thousand Dollars ($50,000.00) of the estimated finish-out cost of the office space performed by a
licensed contractor. At issue of the Certificate of Occupancy (CO) all actual finish-out construction
costs will be reviewed and evaluated for possible adjustments downward of the rent-abatement
period. Under no circumstances shall the Tenant Improvement Period exceed the initial term of the
agreement. Helicopter Institute shall commence the payment of rent for the premises beginning on
the effective date. Tenant incentives have no cash value and are forfeited if not used during the
Tenant Improvement Period.
The rental rate is based on $14.50 per square foot. Total revenue received from the Lease will be
in the amount of$24,983.52 per year for office space, payable in monthly installments of$2,081.96
per month. On October 1, 2022, and on October 1 st of each year thereafter during both the initial
term and any renewal term, Helicopter Institute's rental rate will be adjusted to comply with the
rates prescribed for the premises by the City's Schedule of Rates and Charges in effect at the
respective time.
Fort Worth Meacham International Airport is located in COUNCIL DISTRICT 2.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendation and execution of
apps.cfwnet.org/council_packeUmc_review.asp?ID=29789&councildate=3/29/2022 1/2
3/30/22,8:49 AM M&C Review
the lease, funds will be deposited into the Municipal Airport Fund. The Aviation Department (and
Financial Management Services) is responsible for the collection and deposit of funds due to the City.
TO
Fund Department Account Project Program Activity Budget Reference# Amount
ID ID Year Chartfield 2)
FROM
Fund Department Account Project Program Activity Budget Reference# Amount
ID ID Year Chartfield 2
Submitted for City Manager's Office by: Dana Burghdoff (8018)
Originating Department Head: Roger Venables (5402)
Additional Information Contact: Ricardo Barcelo (5403)
ATTACHMENTS
FID TABLE.xlsx (CFW Internal)
Floor Plan L40.pdf (Public)
Form 1295 Certificate Helicopter Institute 2022.pdf (CFW Internal)
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