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HomeMy WebLinkAboutContract 25212 i � CITY SECRETARY FORT WORTH MEACHAM INTERNATIONAL AIRPORT GROUND LEASE AGREEMENT Lease Site 1-S This UNIMPROVED GROUND LEASE AGREEMENT ("Lease") is made and entered into by and between the CITY OF FORT WORTH ("Lessor"), a home rule municipal corporation situated partly in Tarrant County, Texas acting by and through Ramon Guajardo, its duly authorized Assistant City Manager, and SANDPIPER AIRPORT INN, INC. ("Lessee"), a Texas corporation acting by and through Don Hansen, its duly authorized President. Recitals The following statements are true and correct and form the basis of this Lease: A. Lessor and Lessee previously entered into City Secretary Contract ("CSC") No. 7920, a Fixed Base Operator Lease of certain unimproved land at Fort Worth Meacham International Airport("Airport"). CSC No. 7920 was subsequently amended by CSC Nos. 8317, 8419, 8606, 11079, 11080, 13190, 17320 and 17328, which collectively shall be referred to as the "Previous Lease". The real property demised by Lessor under the Previous Lease shall be referred to hereinafter as the "Previous Premises". B. Lessor previously consented to the execution by Lessee of a Deed of Trust Lien on and a security interest in Lessee's rights under the Previous Lease to the Previous Premises in favor of Bank of the West. This consent is reflected in CSC No. 18967. C. Because of the addition and subtraction of various tracts of land comprising the Previous Premises,Lessor commissioned a new survey of the Previous Premises. Lessor and Lessee now desire to terminate the Previous Lease and to enter into this Lease on substantially the same terms and conditions as in the Previous Lease. Agreement NOW, THEREFORE, in consideration of the mutual covenants, promises and obligations contained herein,the parties agree as follows: 1. TERMINATION OF PREVIOUS LEASE. The Previous Lease is hereby terminated contemporaneously with the execution of this Lease. However, such termination shall not constitute (i) a release by one party of any liability, accruing or obligation to indemnify under the Previous Lease or (ii) a waiver of one party to enforce any unperformed duties or obligations of the other under the Previous Lease. Article VI.B of CSC No. 7920 shall specifically survive termination of the Previous Lease. Lessor's consent under CSC No. 18967 to the Deed of Trust Lien and security interest granted in favor of Bank of OQ RKU:AL RECORD CITY YRN��,C�R I l y R. (// the West shall remain in effect with respect to the Premises demised under this Lease and Lessor's rights and interest in such Premises as granted by this Lease. 2. PROPERTY LEASED AND TERM OF LEASE . Lessor hereby demises to Lessee approximately 168,347 square feet of land at the Airport identified as Lease Site 1-S ("Premises"), as shown in the map of Exhibit "A" and the field notes of Exhibit "B", both of which are attached hereto and hereby made a part of this Lease for all purposes. The term of this Lease shall commence on the date of its execution ("Effective Date") and expire at 11:59 P.M. CDT on May 31, 2016, unless terminated earlier as provided herein. If Lessee holds over after the expiration of the term of this Lease, this action will create a month-to- month tenancy. In this event, for and during the holdover period, Lessee agrees to pay all applicable rentals, fees and charges at the rates provided by Lessor's Schedule of Rates and Charges or similarly published schedule in effect at the time. 3. RENT AND ADDITIONAL COMPENSATION. 3.1. Annual Rent for Premises. From the Effective Date of this Lease until September 30, 2001, Lessee shall pay Lessor as annual rent for the Premises the sum of Twenty Thousand Eight Hundred Forty- six and 52/100 Dollars ($20,846.52), payable in twelve monthly installments of One Thousand Seven Hundred Thirty-seven and 21/100 Dollars ($1,737.21). Thereafter, annual rent for the Premises shall be adjusted in accordance with Section 3.2. Rental rates under this Lease are based upon those provided by the Previous Lease. 3.2. Rent Adjustments. Upon written notice from Lessor to Lessee delivered within thirty (30) days prior to (i) October 1, 2001; (ii) October 1, 2006; and (iii) October 1, 2011, respectively, Lessor shall have the right, but not the duty, to adjust rent payable under this Lease to conform to rentals then prevailing at the Airport for comparable increase; provided, however, that such an increase shall not exceed ten percent(10%) of the amount of rent paid by Lessee for the month immediately preceding the date of Lessor's written notice. 3.3. Additional Compensation. As consideration for Lessor's consent to Lessee's operation of a restaurant on the Premises, Lessee shall pay to Lessor, as monthly compensation in addition to any rent payable under this Lease, (i) from the Effective Date until May 31, 2006, one percent (1%) of Lessee's Gross Receipts over Fifty Thousand Dollars ($50,000.00) in the respective month and (ii) from June 1, 2006 until May 31, 2016, one and one-half percent (1.5%) of Lessee's Gross Receipts in the respective month (collectively "Additional Compensation"). For purposes of this Lease, "Gross Receipts" shall mean all receipts in 2 the respective month derived from or related to the operation of a restaurant on the Premises and the related sale of food, drinks and alcoholic beverages, regardless of whether the serving or delivery of the products, commodities or merchandise is done or made on the Premises or elsewhere, and regardless of whether such receipts are derived or collected by Lessee or by any agent, assignee or sublessee of Lessee. It is specifically agreed that the receipts of all sublessees derived from or related to the operation of a restaurant on the Premises by a sublessee and the related sales of food, drinks and alcoholic beverages shall be included in the definition of"Gross Receipts." 3.4. Payment Dates and Late Fees. Monthly rent and Additional Compensation payments are due on or before the first (lst) day of each month. Rent payments must be received during normal working hours by the due date at the location for Lessor's Revenue Office set forth in Section 15. Additional Compensation payments must be received during normal working hours by the due date at the location for Lessor's Department of Aviation set forth in Section 15. Rent shall be considered past due if Lessor has not received full payment after the fifteenih(15th) day of the month for which payment is due. Lessee hereby gives, grants and pledges unto Lessor a contractual preference lien upon all property, tangible or intangible, and property rights belonging to Lessee now or at any time hereafter placed in or upon the Premises to secure the prompt payment of all rentals and fees and the performance of any or all covenants and obligations to be kept and performed by Lessee hereunder. 4. BOOKKEEPING AUDITS AND STATEMENTS. With respect to any restaurant operated on the Premises, Lessee shall maintain accounting books in accordance with generally accepted accounting methods, principles and practices and which accurately reflect all Gross Receipts. Lessor shall have access to all such books and records during normal business hours and, upon written request,Lessee agrees to make all such documents available at the Premises for Lessor's examination. Within thirty (30) days following each anniversary of the Effective Date of this Lease, Lessee, at Lessee's sole cost and expense, shall furnish Lessor with an accurate statement of monthly Gross Receipts ("Annual Statement"). Within thirty (30) days following the expiration or termination of this Lease, Lessee, at Lessee's sole cost and expense, shall furnish Lessor with an accurate statement of monthly Gross Receipts from the last day covered by the immediately preceding Annual Statement to the effective date of expiration or termination, as applicable ("Final Statement"). The Annual and Final Statements shall be prepared by and certified to be true and correct by an independent certified public accountant. 3 5. UTILITIES. Lessee, at Lessee's sole cost and expense, shall be responsible for the installation and use of all utilities service to all portions of the Premises and .for all other related utilities expenses, including, but not limited to, deposits and expenses required for the installation of meters. Lessee further covenants and agrees to pay all costs and expenses for any extension, installation, maintenance or repair of any and all utilities serving the Premises, including, but not limited to, water, sanitary sewer, electric, gas and telephone utilities. In addition, Lessee agrees that all utilities, air conditioning and heating equipment and other electrically-operated equipment which may be used on the Premises shall fully comply with Lessor's Mechanical, Electrical, Plumbing, Building and Fire Codes("Codes"), as they exist or may hereafter be amended. 6. MAINTENANCE AND REPAIRS. Lessee, at Lessee's sole cost and expense, shall maintain the Premises and all improvements thereon and appurtenances thereto in a presentable condition consistent with good business practice in a safe, neat, sightly and good physical condition. Lessee shall repair all damages to the Premises caused by Lessee, its employees, patrons or Lessee's operations thereon; shall maintain and repair all equipment thereon, including, but not limited to, any drainage installations, paving, curbs, islands, buildings and improvements; and shall repaint and reglaze its own buildings and facilities as necessary Lessee agrees that in the event it shall become necessary to make changes within the area covered by this Lease of plumbing, any wiring or similar installations, Lessee will promptly make such changes and installations at Lessee's sole expense, subject to the approval of Lessor and in accordance with all federal, state and municipal laws,ordinances,rules or regulations. Lessor, in Lessor's reasonable discretion shall be the sole judge of the quality of maintenance. Upon provision of written notices by Lessor to Lessee, Lessee shall be required to perform whatever maintenance Lessor-deems necessary. If such maintenance is not undertaken by Lessee within ten (10) days after receipt of written notice, Lessor shall have the right to enter upon the Premises and perform such maintenance, the cost of which shall be borne by Lessee. 7. CONSTRUCTION AND IMPROVEMENTS. 7.1. Discretionary Improvements. Lessee may, at its sole discretion, perform modifications, renovations or improvements on the Premises. However,Lessee may not initiate any kind of modification, renovation or improvement on or to the Premises unless it first submits all plans, specifications and estimates for the costs of the proposed work in writing and also requests and receives in writing approval from the Director of Airport Systems or authorized designee ("Director"). Lessee covenants and agrees that it shall fully comply with all 4 provisions of this Section 7 in the performance of any such discretionary modifications, renovations or improvements. Lessee understands and agrees that Lessor owns in fee simple all permanent improvements on the Premises as of the Effective Date of this Lease and that' title to all permanent improvements that may be constructed or erected on the Premises after the Effective Date of this Lease shall vest in Lessor upon their completion. All other improvements of a non-permanent nature and all trade fixtures, machinery and furnishings made or installed by Lessee may be removed from the Premises by Lessee at any time unless otherwise provided in this Lease. 7.2. Process for Approval of Plans. Lessee's plans for construction and improvements shall conform with the Airport's architectural standards and must also receive written approval from the City's Departments of Development, Engineering and Transportation and Public Works. All plans, specifications and work shall conform to all federal, state and local laws, ordinances, rules and regulations in force at the time that the plans are presented for review. 7.3. Documents. Lessee shall supply the Director with comprehensive sets of documentation relative to any modification, renovation,construction or 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. 7.4. Bonds Required of Lessee. Prior to the commencement of any mandatory or discretionary modification, renovation, improvement or new construction, Lessee shall deliver to Lessor a bond, executed by a corporate surety in accordance with Texas Government Code, Chapter 2253, as amended, in the full amount of each construction contract or project. The bonds shall guarantee(i) satisfactory compliance by Lessee with all requirements, terms and conditions of this Lease, including, but not limited to, the satisfactory completion of the respective modifications,renovations, construction projects or improvements, and(ii) full payments to all persons, firms, corporations or other entities with whom Lessee has a direct relationship for the performance of such modifications, renovations, construction projects or improvements. In lieu of the required bond, Lessee may provide Lessor with a cash deposit or an assignment of a certificate of deposit in an amount equal to 125% of the full amount of each construction contract or project. If Lessee makes a cash deposit,Lessee shall not be entitled to any interest earned thereon. Certificates of deposit shall be from a financial institution in the Dallas-Fort Worth Metropolitan Area which is insured by the Federal Deposit Insurance Corporation and acceptable to Lessor. The interest earned on the certificate of deposit shall be the property of Lessee and Lessor shall have no rights in such interest. 7.5. Bonds Required of Lessee's Contractors. 5 Prior to the commencement of any modification, renovation, improvement or new construction, Lessee's respective contractor shall execute and deliver to Lessee surety performance and payment bonds in accordance with the Texas Government Code, Chapter 2253, as amended, to cover the costs of all work performed under such contractor's contract for such modifications, renovations, improvements or new construction. Lessee shall provide Lessor with copies of such bonds prior to the commencement of such modifications, renovations, improvements or new construction. The bonds shall guarantee (i) the faithful performance and completion of all construction work in accordance with the final plans and specifications as approved by the City and(ii) full payment for all wages for labor and services and of all bills for materials, supplies and equipment used in the performance of the construction contract. Such bonds shall name to both Lessor and Lessee as dual obligees. If Lessee serves as its own contractor, Section 7.5 shall apply. 7.6. 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. 8. USE OF PREMISES. Lessee hereby agrees to use the Premises solely for the operation of (i) a first-class restaurant with sales of food, drinks and alcoholic beverages; (ii) a motel; (iii) fixed base operator services, including (a) the loading and unloading of aircraft in any lawful activity as incidental to the conduct of any services or operations set forth in this Section 8; (b) the maintenance, repair and storage of aircraft, which shall include overhauling, rebuilding, repairing, inspection and licensing of same, and the purchase and sale of parts, equipment and accessories therefor; (c) the operation of a business of buying and selling aircraft and parts and accessories therefor, and aviation equipment of all descriptions, either at retail, wholesale or as dealer; (d) the training on the Airport of personnel in the employ of Lessee and/or Lessee's tenants and sublessees and the training on the Airport of members of the general public generally as students, or other-wise in any art, science, craft or skill pertaining directly or indirectly to aircraft; (e) the location, construction, erection, maintenance and removal of improvements, in any lawful manner, upon or in the Premises for the purpose of carrying out any of the activities provided for herein, subject,however, to the conditions herein generally or particularly set forth; 69 the operation and sale of a sightseeing service; (g) the operation and sale of aerial survey, photography and mapping services; (h) the operation of non- scheduled air taxi and charter transportation of passengers; (i) the operation of schools for the instruction of flying, navigation, mechanics, aerial survey, photography, aircraft design, theory and construction; 6) the renting and leasing of space in hangars on the Premises for the private storage of aircraft on a daily, weekly, monthly or annual basis; and (k) subject to the prior written approval of Lessor, the undertaking of any phase of aviation activity in any way contributing to air 6 transportation,or aerial navigation. Lessee or an experienced manager or managers employed by Lessee shall supervise Lessee's motel and restaurant and bar operations on the Premises in a professional manner and to ensure that such establishments are maintained in a safe, clean, orderly or inviting manner at all times. It is specifically agreed and stipulated that the following concessions and the establishment thereof are excluded from this Lease, to wit: (i) ground transportation for hire; (ii) auto rental; (iii)news and sundry sales; (iv)barber and valet service; and (v) aviation fuel sales. Lessee shall have the use in common with the general public of all Public Airport Facilities and improvements which are now or may hereafter be connected with or appurtenant to the Airport for Lessee's authorized uses of the Airport. For purposes of this Lease, "Public Airport Facilities" shall mean all necessary landing area appurtenances, including, but not limited to, approach areas, runways, taxiways, public aprons, automobile parking areas, roadways, sidewalks, navigational and avigational aids, lighting facilities, public terminal facilities and other public facilities at the Airport. Lessee and Lessee's agents, servants,patrons and invitees shall have a right of ingress to and egress from the Premises over and across public roadways serving the Airport. Lessor warrants to Lessee peaceful possession and quiet enjoyment of the Premises during the term hereof upon the performance of Lessee's duties and obligations under this Lease. 9. SIGNS . Lessee may, at its sole expense and with the prior written approval of the Director, install and maintain signs on the Premises related to Lessee's business operations. Such signs, however, must be in keeping with the size, color, location and manner of display of other signs at the Airport. Lessee shall maintain all signs in a safe,neat,sightly and physically good condition. 10. RIGHTS AND RESERVATIONS OF LESSOR. Lessor hereby retains the following rights and reservations: 10.1. Lessor reserves the right to take any action it considers necessary to protect the aerial approaches of the Airport against obstruction, including, but not limited to, the right to prevent Lessee from erecting or permitting to be erected any building or other structure which, in the opinion of Lessor, would limit the usefulness of the Airport, constitute a hazard to aircraft or diminish the capability of existing or future avigational or navigational aids used at the Airport. 10.2. Lessor reserves the right to close temporarily the Airport or any of its facilities for maintenance, improvements, safety or security of either the Airport or the public. 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. 10.3. This Lease shall be subordinate to the provisions of any existing or future agreement between Lessor and the United States Government which relates to the operation or 7 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. 10.4. During any war or national emergency, Lessor shall have the right to lease any part of the Airport, including its landing area, to the United States Government. In this event, any provisions of this instrument which are inconsistent with the provisions of the lease to 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. 10.5. Lessor covenants and agrees that during the term of this Lease it will operate and maintain the Airport and its facilities as a public airport consistent with and pursuant to the Sponsor's Assurances given by Lessor to the United States Government through the Federal Airport Act; and Lessee agrees that this Lease and Lessee's rights and privileges hereunder shall be subordinate to the Sponsor's Assurances. 10.6. Lessee's rights hereunder shall be subject to all existing utility and drainage easements and rights-of-way granted by Lessor for the installation,maintenance, inspection, repair or removal of facilities owned or operated by electric, gas, water, sewer, communication or other utility companies. Lessee's rights shall additionally be subject to all rights granted by any ordinance or statute which allows utility companies to use publicly-owned property for the provision of utility services. 11. INSURANCE. 11.1. Types of Coverage and Limits. Lessee shall procure and maintain at all times, in full force and effect, a policy or policies of insurance as specified in this Section 11, covering all 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: • Pro e Fire and Extended Coverage on all improvements at full replacement cost limit and containing a waiver of subrogation in favor of Lessor; • Commercial General Liability: $300,000 per occurrence. In addition, Lessee shall be responsible for all insurance to construction, improvements, modifications or renovations to the Premises and for personal property of its own or in its care, custody or control. 8 11.2. Certificates. As a condition precedent to the effectiveness of this Lease, Lessee shall furnish Lessor with appropriate certificates of insurance signed by the respective insurance companies as proof that it has obtained the types and'amounts of insurance coverage required herein. Lessee hereby covenants and agrees that not less than thirty(30) days prior to the expiration of any insurance policy required hereunder, it shall provide Lessor with a new or renewal certificate of insurance. In addition, Lessee shall, at Lessor's request, provide Lessor with evidence that it has maintained such coverage in full force and effect. 11.3. Additional Requirements. Lessee shall maintain its insurance with underwriters authorized to do business in the State of Texas and which are satisfactory to Lessor. The policy or policies of insurance shall be endorsed to cover all of Lessee's operations at the Airport and to provide that no material changes in coverage, including, but not limited to, cancellation, termination, non- renewal or amendment, shall be made without thirty (30) days' prior written notice to Lessor. 12. INDEPENDENT CONTRACTOR. It is expressly understood and agreed that Lessee shall operate as an independent contractor as to all rights and privileges granted herein, and not as an agent, representative or employee of Lessor. Lessee shall have the exclusive right to control the details of its operations and activities on the Premises and shall be solely responsible for the acts and omissions of its officers, agents, servants, employees, contractors, subcontractors, patrons, licensees and invitees. Lessee acknowledges that the doctrine of 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. 9 13. INDEMNIFICATION. LESSEE COVENANTS AND AGREES TO INDEMNIFY, HOLD HARMLESS AND DEFEND LESSOR, ITS AGENTS, SERVANTS OR EMPLOYEES, FROM AND AGAINST ANY AND ALL CLAIMS FOR DAMAGES OR INJURY TO PERSONS OR PROPERTY ARISING OUT OF OR INCIDENT TO THE LEASING OF OR THE USE AND OCCUPYING OF THE PREMISES BY LESSEE, ITS EMPLOYEES, PATRONS, CONTRACTORS OR SUBCONTRACTORS; AND LESSEE DOES HEREBY ASSUME ALL LIABILITY AND RESPONSIBILITY FOR INJURIES, CLAIMS OR SUITS FOR DAMAGES TO PERSONS OR PROPERTY OF WHATSOEVER KIND OR CHARACTER, WHETHER REAL OR ASSERTED, OCCURRING DURING THE TERM OF THIS LEASE IN CONNECTION WITH THE USE OR OCCUPANCY OF THE PREMISES BY LESSEE, ITS EMPLOYEES, PATRONS, CONTRACTORS OR SUBCONTRACTORS. LESSEE SHALL PAY PROMPTLY WHEN DUE ALL BILLS OR CHARGES FOR CONSTRUCTION OR MAINTENANCE AS WELL AS ANY OTHER AMOUNTS DUE FOR MATERIAL OR SERVICES FURNISHED IN CONNECTION HEREWITH, AND LESSEE SHALL INDEMNIFY LESSOR AGAINST ANY AND ALL MECHANICS AND MATERIALMEN'S LIENS OR ANY OTHER TYPES OF LIENS IMPOSED UPON THE PREMISES DEMISED HEREUNDER ARISING AS A RESULT OFLESSEE'S CONDUCTOR INACTIVITY. 14. TERMINATION. In addition to termination rights contained elsewhere in this Lease, Lessor shall have the right to terminate this Lease as follows: 14.1. Failure by Lessee to Pay Rent,Fees or Other Charges. If Lessee fails to pay any rent, fees or other charges due under this Lease, Lessor shall deliver to Lessee a written invoice and notice to pay the invoice within fifteen (15) calendar days. If Lessee fails to pay the balance outstanding within such time, Lessor shall have the right to terminate this Lease immediately. 14.2. Breach or Default by Lessee. If Lessee commits any breach or default, other than Lessee's failure to pay rent, Lessor shall deliver written notice to Lessee specifying the nature of such breach or default. Lessee shall have thirty (30) calendar days following 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. 10 14.3. Failure to Replace Destroyed Improvements. If any improvements on the Premises are destroyed by fire, explosion or other peril and Lessee fails to replace such improvements within six (6) months following the date of such destruction, Lessor may terminate this Lease upon thirty (30) days' prior written notice. 14.4. Abandonment of the Premises. If Lessee abandons the Premises for thirty (30) or more consecutive days, Lessor may terminate this Lease by providing written notice to Lessee at Lessee's last known address. 14.5. Lessee's Financial Obligations to Lessor upon Termination. If Lessor terminates this Lease for any reason provided in Sections 14.1, 14.2, 14.3 or 14.4 of this Lease, Lessee shall be and remain liable for and shall pay to Lessor all rent due Lessor up to the effective date of termination. 14.6. 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. 15. 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: 11 To LESSOR: For Rent: For All Other Matters: City of Fort Worth Dept of Aviation JI Revenue Office Meacham Int'l Airport 1000 Throckmorton 4201 N Main St Ste 200 Fort Worth TX 76102 Fort Worth TX 76106-2736 To LESSEE: Sandpiper Airport Inn Inc Attn Don Hansen Meacham Int'l Airport Hangar 1-S 4001 N Main St Fort Worth TX 76106-2797 16. ASSIGNMENT AND SUBLETTING. 16.1. In General. Lessee shall not assign,sell, convey, sublease or transfer the entirety of its rights, privileges, duties or interests granted by this Lease without the advance written consent of Lessor. 16.2. Conditions of Approved Assignments and Subleases. If Lessor consents to any assignment or sublease, all terms, covenants and agreements set forth in this Lease shall apply to the assignee or sublessee, and such assignee or sublessee shall be bound by the terms and conditions of this Lease the same as if it had originally executed this Lease. The failure or refusal of Lessor to approve a requested assignment or sublease shall not relieve Lessee of its obligations hereunder, including payment of rentals, fees and charges. 17. 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. 18. COMPLIANCE WITH LAWS,ORDINANCES,RULES AND REGULATIONS, 12 Lessee covenants and agrees that it shall not engage in any unlawful use of the Premises. Lessee further agrees that it shall not permit its officers, agents, servants, employees, contractors, subcontractors, patrons, licensees or invitees to engage in any unlawful use of the Premises and Lessee immediately shall ,remove. from the Premises any person engaging in such unlawful activities. Unlawful use of the Premises by Lessee itself shall constitute an immediate breach of this Lease. Lessee agrees to comply with all federal, state and local laws; all ordinances, rules and regulations of Lessor; all rules and regulations established by the Director; and all rules and regulations adopted by the City Council pertaining to the conduct required at airports owned and operated by the City, 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. 19. NON-DISCRIMINATION COVENANT. Lessee, for itself, its personal representatives, successors in interest and assigns, as part of the consideration herein, agrees as a covenant running with the land that no person shall be excluded from participation in or denied the benefits of Lessee's use of the Premises on the basis of race, color, national origin, religion, handicap, sex, sexual orientation or familial status. Lessee further agrees for itself, its personal representatives, successors in interest and assigns that no person shall be excluded from the provision of any services on or in the construction of any improvements or alterations to the Premises on grounds of race, color, national origin, religion, handicap, sex, sexual orientation or familial status. 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. 20. LICENSES AND PERMITS. Lessee shall, at its sole expense, obtain and keep in effect all licenses and permits necessary for the operation of its operations at the Airport. 21. GOVERNMENTAL POWERS. 13 It is understood and agreed that by execution of this Lease, Lessor does not waive or surrender any of its governmental powers. 22. 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. 23. VENUE AND JURISDICTION. If any action, whether real or asserted, at law or in equity, arises on the basis of any provision of this Lease or of Lessee's operations on the Premises, venue for such action shall lie in state courts located in Tarrant County, Texas or the United States District Court for the Northern District of Texas, Fort Worth Division. This Lease shall be construed in accordance with the laws of the State of Texas. 24. ' ATTORNEYS' FEES. In the event there should be a breach or default under any provision of this Lease and either party should retain attorneys or incur other expenses for the collection of rent, fees or charges, or the enforcement of performance or observances of any covenant, obligation or agreement, Lessor and Lessee agree that the prevailing party shall be entitled to recover reasonable attorneys' fees and other reasonable expenses from the other party. 25. 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. 26. FORCE MAJEURE. Lessor and Lessee shall exercise every reasonable effort to meet their respective obligations as set forth in this Lease, but shall not be held liable for any delay in or omission of performance due to force majeure or other causes beyond their reasonable control, including, but not limited to, compliance with any government law, ordinance or regulation, acts of God, acts of omission, fires, strikes, lockouts, national disasters, wars, riots, material or labor restrictions, transportation problems and/or any other cause beyond the reasonable control of Lessor or Lessee. 14 27. 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. 28. ENTIRETY OF AGREEMENT. This written instrument, including any documents attached hereto or incorporated herein by reference, contains the entire understanding and agreement between Lessor and Lessee, its assigns and successors in interest, as to the matters contained herein. Any prior or 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. IN WITN 'SS EREOF, the parties hereto have executed this Lease in multiples, this CITY OF FORT WORTH: SANDPIPER AIRPORT INN,INC: B Y� By: 9'r Ramon Guajardo Don Hansen Assistant City Manager President ATTES ATTEST: By: By: ity Secretary 15 APPROVED AS TO FORM AND LEGALITY: -ezz�� Assistant CityktornCV M&C: 16 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 Don Hansen, 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 Sandpiper Airport Inn, Inc., and that he executed the same as the act of Sandpiper Airport Inn, Inc., for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this cZ day of SAP 61766C .-y SANDRA MITCHELL NOTARY PUBLIC _ S STATE OF TEXAS CWF MY COMM.UP.07-23-2003 N4oary Public in and for the State of Texas qg 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 Ramon Guajardo, 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 said 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 of it�x 194 . o Public in d r the ate of Texas SARAH JAIVE ODLE NOTARyPUBLIC State of Texa's COMM, Exp.o9-29-2002 1 O i 'V f m of co FC^. u.G vii � U o I o as ,n: m7► < m i{ z Cj acd � O eio vi a I3 rn U' t&�& r� A, m N: SI�96 sag_ d:2^_ L� Co a�i q w I stC:t v .�G ..7 a7 o P.f i � F Mgy��W�� s "s i I N I y� iZ is eY Q� 91d ESixi { 9� �� na 9 't E�aipao� ssaooV 3��� tr�2 m ` Ha• � �ru QSYSR U C C. •.ism N 8b b_ it cV c� o a Q�d.R U 9 � a % peog urea ns3tnf) 7 fit psis d N � r i ,V,V I A szgzxx2 - EXHIBIT "B" page 1 of 2 jP0' kT OkTH Legal Description for; Fort Worth International Airport Lease Site No. IS A parcel of land,being a portion of Block 2, Meacham Airport,according to plat, recorded in Cabinet A, Slide 2445, Plat Records,Tarrant County,Texas,also known as Fort Worth Meacham International Airport,and being More particularly described as follows using the Texas Coordinate.System,North Central Zone,NAD 27,Coordinates and Bearings as follows: Commence at a point in the west line Of North Main Street and the north line of 38`x'Street, said point being an easterly southwest corner of said Meacham Airport,Thence: NORTH,739.07 feet,and WEST, 44.18 feet to a PK Nail with Shiner set for the POINT of BEGINNING of the herein described lease,said point being the southeast corner of Lease Site IS,said point being the northeast corner Of Lease Site 2S, the Coordinates of said POINT of BEGINNING are X=2,045,644.77,Y=417,687.17; Thence;North 89 degrees 36 minutes 00 seconds West,at 310.46 feet pass a PK Nail set for the northwest corner of Lease Site 2S, in all 364.71 feet,to a mark X cut in concrete,for the southwest corner of the herein described lease; Thence;North 00 degrees 26 minutes 34 seconds East,405.82 feet,to a mark X found in concrete, for the most westerly northwest corner of herein described lease; Thence;South 80 degrees 12 minutes 21 seconds East, 147.09 feet,to a PK Nail With Shiner set; Thence;North 00 degrees 43 minutes 39 seconds East, 129.28 feet,to an PK Nail With Shiner Set, for the most northerly northwest corner of herein described lease; Thence;South 89 degrees 16 minutes 21 seconds East, 194.50 feet,to a 5/8" Iron Rod with a Red Cap Set, for the most northerly north east corner of the herein described lease; Thence;South 00 degrees 30 minutes 21 seconds West, 39.00 feet,to an PK Nail With Shiner Set: Thence;South 89 degrees 29 minutes 39 seconds East,25.00 feet,to an PK Nail With Shiner Set, for the most easterly north east corner of herein described lease; Thence;South 00 degrees 30 minutes 21 seconds West,470.94 feet,to the Point of Beginning,and containing 168,374 square feet of land, more or less. Surveyed on the ground in February, 1999. t HANtOR. HAN."=:� A {V 0 P ENGINEERING DEPARTMENT THE CITY OF FORT WORTH * 1000 THROCKMORTON STREET * FORT WORTH,TEXAS 76102-6311 (817) 871-7941 * FAX(817) 871-7854 �' Printed on recycled paper EXHIBIT "B" page 2of 2 FokTWOkTH Legal Description for; Fort Worth International Airport Lease Site No. 1S-D-S A parcel of land,being a portion of Block 2, Meacham Airport,according to plat, recorded in Cabinet A, Slide 2445, Plat Records,Tarrant County,Texas,also known as Fort Worth Meacham International Airport,.and being more particularly described as follows using the Texas Coordinate System,North Central Zone,NAD 27,Coordinates and Bearings as follows: Commence at a point in the west line of North Main Street and the north line of 3 "Street, said point being an easterly southwest corner of said Meacham Airport,Thence:NORTH,,783.81 feet,and WEST, 4.60 feet to a 5/8" Iron Rod with a Red Cap set for the POINT of BEGINNING of the herein described lease,said point being the south west corner of Lease Site 1 S-D-S,the Coordinates of said POINT of BEGINNING are X=2,045,684.35,Y=417,731.91; Thence;North 89 degrees 32 niinutes 04 seconds West, 15.00 feet,to a Rail Road Spike set; Thence;Generally along the west edge a concrete runner,North 00 degrees 27 minutes 56 seconds East, 157.54 feet,to a Rail Road Spike set; Thence;North 89 degrees 32 minutes 04 seconds West,4.60 feet,to a PK Nail with Shiner set; Thence;North 00 degrees 27 minutes 56 seconds East, 8.64 feet,to a PK Nail with Shiner set; Thence; South 89 degrees 32 minutes 04 seconds East,4.60 feet,to a Rail Road Spike set; Thence;Generally along the west edge a concrete runner,North 00 degrees 27 minutes 56 seconds East, 85.67 feet,to a Rail Road Spike set; Thence; South 89 degrees 32 minutes 04 seconds East, 15.00 feet,to a 5/8" Iron .Rod with a Red Cap set; Thence; South 00 degrees 27 minutes 56 seconds West,251.85 feet;to the Point of Beginning, and containing 3,817 square feet of land,more or less. Surveyed on the ground in February, 1999. M• F. ANS K. H -4 � �,sti•�.F.E s S t SUW; ENGINEERING DEPARTMENT p THE Crry OF FORT WORTH * 1000 THROCKMORTON STREET * FORT WORTH,TEXAS 76102$311 (817) 871-7941 * FAx(817) 871-7854 eJ Printed on recycled paper City of.Fort Forth, Texas "a."off and c2ouncit MMUMCFA6 I ion DATE REFERENCE NUMBER LOG NAME PAGE 6/29/99 L-12546 55SANDPIPER 1 of 1 SUBJECT LEASE AGREEMENTS WITH SANDPIPER AIRPORT INN, INC. FOR LEASE SITES 1S` AND 2S AT MEACHAM INTERNATIONAL AIRPORT AND TERMINATION OF CSC NOS. 7920 AND 8481, AS PREVIOUSLY AMENDED AND ASSIGNED RECOMMENDATION: It is recommended that the City Council: 1. Authorize the termination of City Secretary Contract (CSC) Nos. 7920 and 8481, as previously amended and assigned; and 2. Authorize the City Manager to execute lease agreements with Sandpiper Airport Inn, Inc. (Sandpiper), for Lease Sites IS and 2S at Meacham Airport. DISCUSSION: In 1974, CSC Nos. 7920 and 8481 were executed with the predecessor of Sandpiper for unimproved property at Meacham International Airport. Over the years a hotel and an aircraft hangar have been constructed on the sites. Also, over the years several amendments to the original leases have been executed that added and subtracted property to the original premises. A new survey has been performed that combines all of the amended areas into Lease Sites 1 S and 2S. The original underlying leases as well as the various amendments should be terminated, and two new leases should be executed for the two lease sites. The terms of the leases will not change from the terms of the original leases. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that this action will have no material effect on City funds. RG:k Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY Office by: (to) APPROVED Ramon Guajardo 6191 CITY COUNCH- Originating Department Head: Lisa Pyles 5403 (from) iurl 29 1999 Additional Information Contact: Cily Secretary of the City of Fort Worth,Texas Lisa Pyles 5403