Loading...
HomeMy WebLinkAboutContract 26292 CITY SECRETARY CONTRACT No . c . FORT WORTH MEACHAM INTERNATIONAL AIRPORT UNIMPROVED GROUND LEASE AGREEMENT WITH MANDATORY IMPROVEMENTS (LEASE SITE 44-N) 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 organized under the laws of the State of Texas, acting by and through Ramon Guajardo, its duly authorized Assistant City Manager, and APIAQ LIMITED PARTNERSHIP ("Lessee"), a Texas limited partnership, acting by and through Gary Havener,President of Cidema Corporation, a Texas corporation and Lessee's General Partner. WITNESSETH: That in consideration of the mutual covenants, promises and obligations contained herein, and for other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged by both Lessor and Lessee,the parties agree as follows: 1. PROPERTY LEASED. 1.1. Demised Premises. Lessor hereby demises to Lessee 200,797 square feet of unimproved land at Fort Worth Meacham International Airport ("Airport") identified as Tract A on Exhibit "A", attached hereto and hereby made a part of this Lease for all purposes, and more commonly Imown as Lease Site 44-N(the"Premises"). 1.2. Additional Premises. Lessee shall have rights of first refusal, as more specifically set forth in this Section 1.2, to lease those parcels of land at the Airport identified as Tract B and Tract C,which are depicted on Exhibit "A" hereof. Tracts B and C shall hereafter be referred to, either singularly, collectively or in any variation thereof, as the "Additional Premises" unless otherwise specified. 1.2.1. Tract B. From the Effective Date of this Lease until September 30, 2001, Lessee shall have a right of first refusal to lease an additional 26,785 square feet of unimproved land at the Airport identified as Tract B on Exhibit "A". As consideration for Lessee's right of first refusal to lease Tract B, Lessee shall pay Lessor the sum of One Hundred Dollars ($100.00). Lessee may renew its right of first refusal to lease Tract B on an annual basis, commencing on October 1 of a given year and expiring Improved Ground Lease with 0MCN" L RECORD APIAQ Limited Partnership CRY NC,RE r4 RY September 30 of the following year, by(i) notifying Lessor in writing not less than thirty(30) days nor more than one hundred twenty(120) days prior to the expiration of the one-year term of the then-current right of first refusal that Lessee wishes to renew its annual right of first refusal to lease Tract B and(ii)paying Lessor the sum of One Hundred Dollars ($100.00); provided, however, that Lessee's right of first refusal to lease Tract B shall in no event extend past September 30,2005. 1.2.2. Tract C. From the Effective Date of this Lease until September 30, 2001, Lessee shall have a right of first refusal to lease an additional 26,737 square feet of unimproved land at the Airport identified as Tract C on Exhibit "A". As consideration for Lessee's right of first refusal to lease Tract B, Lessee shall pay Lessor the sum of One Hundred Dollars (W0.00). Lessee may renew its right of first refusal to lease Tract C on an annual basis, commencing on October 1 of a given year and expiring September 30 of the following year, by(i) notifying Lessor in writing not less than dirty(30) days nor more than one hundred twenty(120) days prior to the expiration of the one-year term of the then-current right of first refusal that Lessee wishes to renew its annual right of first refusal to lease Tract C and(ii) paying Lessor the sum of One Hundred Dollars ($100.00); provided, however, that Lessee's right of first refusal to lease Tract C shall in no event extend past September 30,2005. 1.2.3. Prerequisites for Exercise of First Right of Refusal. Lessee's rights of first refusal to lease the Additional Premises are subject to (i) Lessor's advance written approval of such written plans and specifications and (ii)Lessee's reasonable assurance to Lessor that Lessee will commence construction of any approved development within twelve (12) months. If Lessor does not approve such plans and specifications or if Lessee does not give Lessor reasonable assurance that Lessee will commence construction of any approved development within twelve (12) months, Lessor shall be under no obligation to lease the Additional Premises to Lessee. Lessee's rights of first refusal to lease the Additional Premises are also subject to Lessee's advance provision to Lessor of written plans and specifications for the development of the Additional Premises, which plans and specifications shall meet or exceed any proposed development for the Additional Premises or any portion thereof by a third party, as reasonably determined in good faith by Lessor in its sole discretion. If a third party submits a proposal to Lessor for development of the Additional Premises or any portion thereof, Lessor shall notify Lessee in writing as soon as practicable and shall give Lessee not less than thirty (30) days to submit its own proposal for development of the Additional Premises or any portion thereof. If(i) Lessee fails to submit such a proposal in accordance with Lessor's instructions or (ii) Lessee's proposal for development of the Additional Premises does not meet or exceed any proposed development for the Additional Premises or any portion thereof by a third party, as reasonably determined in good faith by Lessor in its sole discretion, then Lessor Improved Ground Lease with 2 APIAQ Limited Partnership shall be free to lease the Additional Premises to a third party and Lessee shall no longer have any rights in or to the Additional Premises. 1.2.4. Incorporation into Premises. If the Additional Premises or any portion thereof are leased to Lessee pursuant to this Section 1.2, that unimproved land shall be added to, included and defined as part of the Premises for all purposes. 2. TERM OF LEASE. 2.1. Initial Term. The Initial Term of this Lease shall commence on the date of its execution ("Effective Date") and expire at 11:59 P.M. on September 30, 2030, unless terminated earlier as provided herein. This term shall apply to the entirety of Lessee's Premises, whether leased as of the Effective Date or added to the Premises at a later date. 2.2 Renewals. If Lessee performs and abides by all provisions and conditions of this Lease, upon expiration of the Initial Term of this Lease, Lessee shall have two (2) consecutive rights to renew this Lease for two (2) additional successive terms of five (5) years each (each a "Renewal Term") at the rental rate for such building space at the Airport which, on the effective date of a Renewal Term, complies with the Schedule of Rates and Charges published by the City as to improved ground space at the Airport, and on terms and conditions that may be prescribed by Lessor at the time, if Lessor offers the Premises for lease; provided, however, that if Lessee does not renew this Lease in writing for a first Renewal Tenn, Lessee will forgo its right to lease the Premises for a second Renewal Term. In order to exercise its rights to renew this Lease for a Renewal Term, Lessee shall notify the City in writing of its desire to renew this Lease no less than one hundred twenty (120) days and no more than one hundred eighty (180) days prior to the expiration of the term then in effect. 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. Improved Ground Lease with 3 APIAQ Limited Partnership 3. RENT. 3.1. Annual Rent for Premises. From the date that the first final certificate of occupancy is issued for a structure comprising all or any portion of the Mandatory Improvements until the following September 30,Lessee shall pay Lessor as annual rent for Tract A of the Premises the sum of Thirty-eight Thousand One Hundred Fifty-one and 43/100 Dollars ($38,151.43), payable in monthly installments of Three Thousand One Hundred Seventy-nine and 29/100 Dollars ($3,179.29), which amount is based on Lessor's published Schedule of Rates and Charges ("Schedule of Rates and Charges") for unimproved Airport property, which as of the Effective Date of this Lease is $0.19 per square foot. In the event that the date of issuance of the first final certificate of occupancy for a structure comprising all or any portion of the Mandatory Improvements is a day other than the first (1st) day of a respective month, the first month's rental payment shall be prorated in accordance with the number of days remaining in that month. Beginning on the October limmediately following the issuance of such certificate of occupancy, and on October 1 of each year thereafter, annual rent for the Premises shall be adjusted in accordance with Section 3.2. If additional Airport property is added as part of the Premises, including,but not limited to, the Additional Premises, Lessee shall pay additional annual rent for the added Premises in accordance with the rates established by the Schedule of Rates and Charges in effect at that time. 3.2. Rent Adiustments. Rent for the Premises shall be subject to an automatic increase on October 1st of each year,beginning October 1,2001,to reflect the upward percentage change, if any, in the Consumer Price Index for the Dallas/Fort Worth Metropolitan Area, as announced by the United States Department of Labor or successor agency during the immediately preceding twelve-month period("CPI Change");provided,however, that adjusted rental rates for the Premises shall not exceed the then-current rates prescribed by the Schedule of Rates and Charges for similar types of property at the Airport. If there is no CPI Change or the CPI Change is downward, the rental rate for the Premises shall remain constant until the following October 1st. In no event shall the rental rate for the Premises ever be adjusted downward. 3.3. Payment Dates and Late Fees. Monthly rent payments are due on or before the first (lst) day of each month. 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. Rent shall be considered past due if Lessor has not received full payment after the tenth (10th) day of the month for which payment is due. Without limiting Lessor's termination rights as provided by this Lease, Lessor will assess a late penalty charge of ten percent (10%) per month on the entire balance of any overdue rent that Lessee may accrue. Improved Ground Lease with 4 APIAQ Limited Partnership 4. 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. 5. MAINTENANCE AND REPAIRS. . 5.1. Maintenance and Repairs by Lessee. Lessee agrees to keep and maintain the Premises in a good, clean and sanitary condition at all times. Lessee covenants and agrees that it will not make or suffer any waste of the Premises. Lessee will, at Lessee's sole cost and expense, make all repairs necessary to prevent the deterioration in condition or value of the Premises, including,but not limited to, the maintenance of and repairs to all structures, including, but not limited to, doors, windows and roofs, and all fixtures, equipment, modifications and pavement on the Premises. Lessee shall be responsible for all damages caused by Lessee, its agents, servants, employees, contractors, subcontractors, licensees or invitees, and Lessee agrees to fully repair or otherwise cure all such damages at Lessee's sole cost and expense. Lessee agrees that, except as otherwise expressly provided herein, all improvements, trade fixtures, furnishings, equipment and other personal property of every kind or description which may at any time be on the Premises shall be at Lessee's sole risk or at the sole risk of those claiming under Lessee. Lessor shall not be liable for any damage to such property or loss suffered by Lessee's business or business operations, which may be caused by the bursting,overflowing or leaking of sewer or steam pipes, from water from any source whatsoever, or from any heating fixtures, plumbing fixtures, electric wires, noise, gas or odors, or from causes of any other matter. 5.2. Compliance with ADA. Lessee, at its sole cost and expense, agrees to keep and maintain the Premises in full compliance at all times with the Americans with Disabilities Act of 1990, as amended ("ADA"). In addition, Lessee agrees that all improvements it makes at the Airport shall comply with all ADA requirements. Improved Ground Lease with 5 APIAQ Limited Partnership 5.3. Inspection. 5.3.1. Lessor shall have the right and privilege, through its officers, agents, servants or employees, to inspect the Premises. Except in the event of an emergency, Lessor shall conduct during Lessee's ordinary business hours and shall use its best efforts to provide Lessee at least two (2)hours notice prior to inspection. 5.3.2. If Lessor determines during an inspection of the Premises that Lessee is responsible under this Lease for any maintenance or repairs, Lessor shall notify Lessee in writing. Lessee agrees to begin such maintenance or repair work diligently within thirty (30) calendar days following receipt of such notice and to then complete such maintenance or repair work within a reasonable time, considering the nature of the work to be done. If Lessee fails to begin the recommended maintenance or repairs within such time or fails to complete the maintenance or repairs within a reasonable time, Lessor may, in its discretion, perform such maintenance or repairs on.behalf of Lessee. In this event, Lessee will reimburse Lessor for the cost of the maintenance or repairs, and such reimbursement will be due on the date of Lessee's next monthly rent payment following completion of the maintenance or repairs. 5.3.3. During any inspection, Lessor may perform any obligations that Lessor is authorized or required to perform under the terms of this Lease or pursuant to its governmental duties under federal state or local laws,rules or regulations. 5.3.4. Lessee will permit the City's Fire Marshal or his or her authorized agents to inspect the Premises and Lessee will comply with all requirements of the Fire Marshal or his or her authorized agents that are necessary to bring the Premises into compliance with the City of Fort Worth Fire Code and Building Code provisions regarding fire safety, as such provisions exist or may hereafter be amended. Lessee shall maintain in proper condition accessible fire extinguishers of a number and type approved by the Fire Marshal or his or her authorized agents for the particular hazard involved. 5.4. Environmental Remediation. To the best of Lessor's knowledge, the Premises comply with all applicable federal, state and local environmental regulations or standards. Lessee agrees that it has inspected the Premises and is fully advised of its own rights without reliance upon any representation made by Lessor concerning the environmental condition of the premises. LESSEE, AT ITS SOLE COST AND EXPENSE, AGREES THAT IT SHALL BE FULLY RESPONSIBLE FOR THE REMEDL4T1ON OF ANY VIOLATION OF ANY APPLICABLE FEDERAL, STATE OR LOCAL ENVIRONMENTAL REGULATIONS OR STANDARDS THAT IS CAUSED BY LESSEE, ITS OFFICERS, AGENTS, SERVANTS, EMPLOYEES, CONTRACTORS, SUBCONTRACTORS OR INVITEES. Lessor shall be responsible for the remediation of any violation of any applicable federal, Improved Ground Lease with 6 APIAQ Limited Partnership state or local environmental regulations that is caused by Lessor, its officers, agents, servants or employees. For any violation of any applicable federal, state or local environmental regulations that is caused by a contractor of Lessor (other than Lessee), a subcontractor, prior tenant or other third party, Lessor shall be responsible for the remediation of the same or shall take all necessary steps to ensure that the person or entity causing such violation remediates the same. 5.5. Deposit. On or before the Effective Date of this Lease, Lessee shall remit to Lessor in cash a maintenance/damage deposit ("Deposit") of$3,179.29, which represents one (1) month's rent for the Premises at the current rate established by the Schedule of Rates and Charges. Unless Lessor terminates this Lease as provided by Section 14, Lessor will refund to Lessee any unused portion of the Deposit within thirty (30) calendar days following the date that Lessee vacates the Premises. Lessee agrees that if Lessor terminates this Lease for any non- payment of rent, failure to construct the Mandatory Improvements in accordance with this Lease or other breach or default, as provided by Sections 14.1, 14.3 and 14.2 respectively, Lessor shall be entitled to retain the entire balance of the Deposit as liquidated damages, and not as a penalty, for administrative costs associated with the termination process. Lessor and Lessee hereby agree that this amount is a reasonable approximation of the actual damages that Lessor will incur as a result of the termination process. Assessment of such liquidated damages shall not serve as a waiver by Lessor to collect any other damages to which it may be entitled. 6. DAMAGE OR DESTRUCTION TO PREMISES. .hi the event of fire or other casualty which damages or destroys all or any part of the Premises,the following provisions shall apply: 6.1. Coverage by Lessee's Insurance. Lessee's property insurance, as required by Section 11.1 of this Lease, shall be primary to any insurance on the Premises carried by Lessor and shall be used exclusively to repair or rebuild the damaged or destroyed portions of the Premises. Lessee shall be responsible for oversight of all repairs or reconstruction on and to the Premises and shall repair or rebuild the damaged or destroyed portions of the Premises to the size and standards that meet or exceed the size and standards of such portions of the Premises prior to the damage or destruction. All repair and reconstruction activities carried out by or on behalf of Lessee shall be conducted in accordance with Sections 7.2 through 7.7 of this Lease. Improved Ground Lease with 7 APIAQ Limited Partnership 6.2. Premises Uninsured or Underinsured by Lessee. If Lessee fails to carry adequate property insurance in accordance with Section 11.1 of this Lease, Lessor, at Lessor's sole option, may (i) terminate this Lease upon thirty (30) days' advance written notice to Lessee or (ii) repair or rebuild the Premises substantially to its former condition at Lessor's own cost and expense. If Lessor notifies Lessee in writing within thirty (30) days following the date of damage or destruction that Lessor intends to undertake the necessary repairs or reconstruction, and the damage or destruction does not render the affected portion of the Premises untenable, this Lease shall continue in effect without any rent abatement whatsoever so long as Lessor diligently commences the repairs or reconstruction within one hundred eighty (180) days from the date of the damage or destruction. If the damage or destruction does render the affected portion of the Premises temporarily untenable, or Lessor does not commence the repairs or reconstruction within one hundred eighty (180) days from the date of the damage or destruction, then for the period of time between the date of damage or destruction and the date a certificate of occupancy is issued for the portion of the Premises that was rendered untenantable, rent shall be proportionally reduced by the amount of square footage rendered untenantable. Upon the issuance of a certificate of occupancy and thereafter, rent shall comply with the Schedule of Rates and Charges in effect at the time as set forth in Section 3 as they apply to the Premises as improved by Lessor. In other words, if Lessee was paying an unimproved ground rate and, pursuant to this Section 6.2, Lessor repaired or rebuilt an aircraft hangar originally constructed by Lessee, then the subsequent rental rate would not be that for unimproved land, but rather that which applied to similar hangar space at the Airport at the time. 7. CONSTRUCTI®N AND IMPROVEMENTS. 7.1. Mandatory Improvements. Lessee covenants and agrees that it shall improve the Premises in accordance with the time frames, milestones, specifications and other conditions of Exhibit "B", attached hereto and made a part of this Lease for all purposes. Such improvements shall hereinafter be referred to as "Mandatory Improvements". Lessee shall diligently commence construction of such Mandatory Improvements (i) within six (6) months following the Effective Date of this Lease. Lessee shall fully comply with all provisions of this Section 7 in the performance of any such Mandatory Improvements. In the event that Lessee requests any changes to requests and Lessor approves Exhibit `B" prior to the completion of the improvements set forth therein, a revised Exhibit `B" signed by both Lessor and Lessee shall be attached to and made a part of this Lease. Lessor shall take title to the Mandatory Improvements upon the issuance of a final certificate of occupancy for the Mandatory Improvements. Improved Ground Lease with 8 APIAQ Limited Partnership 7.2. Discretionary Improvements. Lessee may, at its sole discretion, perform modifications, renovations or improvements on the Premises in addition to those required by Section 7.1. 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 Airport Systems Director or authorized representative ("Director"). Lessee covenants and agrees that it shall fully comply with all provisions of this Section 7 in the performance of any such discretionary modifications, renovations or improvements. Lessor shall take full title to any Discretionary Improvements on the Premises upon the issuance of a certificate of occupancy for such improvements or, if a certificate of occupancy is not required for any given Discretionary Improvement, upon acceptance in writing by Lessor of such Discretionary Improvement. 7.3. Process for Approval of flans. Lessee's plans for construction and improvements shall conform to the Airport's architectural standards and must also receive written approval from the City's Departments of Development, Engineering and Transportation/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. 7.4. 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. Lessee shall supply the textual documentation in computer format as requested by Lessor. 7.5. 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. Improved Ground Lease with 9 APIAQ Limited Partnership 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. If Lessee fails to complete the respective modifications, renovations, construction projects or improvements, or if claims are filed by third parties on grounds relating to such modifications, renovations, construction projects or improvements, Lessor shall be entitled to draw down the full amount of Lessee's cash deposit or certificate of deposit. 7.6. Bonds Required of Lessee's Contractors. 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) fall 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. 7.7. 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 aviation-related purposes only. Lessee may not provide fixed base operator services at the Airport without a valid Fixed Base Operator Permit issued by Lessor. Lessee is hereby prohibited from the provision, without limitation, of the following concessions: ground transportation for rent or hire, including taxi and limousine service; food sales; barber and valet services; alcoholic beverage sales; sales of pilot supplies; newsstands; Improved Ground Lease with 10 APIAQ Limited Partnership and gift and other retail shops. However, Lessee may install and operate vending machines on the Premises for use by Lessee and its employees. 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 m— 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, or for any other cause deemed necessary by Lessor. In this event, Lessor shall use its best efforts to minimize any business disruption or damages to Lessee,but 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 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 Improved Ground Lease with 11 APIAQ Limited Partnership Sponsor's Assurances given by Lessor to the United States Government through the Federal .Airport Act; and Lessee agrees that this Lease and Lessee's rights and privileges hereunder shall be subordinate to the Sponsor's Assurances. 10.6. Lessee's rights hereunder shall be subject to all existing and future utility and drainage easements and rights=of--way granted by Lessor for the installation, maintenance, inspection, repair or removal of facilities owned or operated by electric, gas, water, sewer, communication or other utility companies. Lessee's rights shall additionally be subject to all rights granted by any ordinance or statute which allows utility companies to use publicly owned property for the provision of utility services. 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, naming the City of Fort Worth as an additional insured and covering all risks related to the leasing,use, occupancy,maintenance, existence or location of the Premises. Lessee shall obtain the following insurance coverage at the limits specified herein: • 1Pro e Fire and Extended Coverage on all improvements on the Premises at full replacement cost limit; • Commercial General Liability: $1,000,000 per occurrence, including products and completed operations; • Automobile Liability: $1,000,000 per accident, including,but not limited to, coverage on any automobile used in Lessee's operations on the Premises; • Environmental Impairment Liability: $1,000,000 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. Improved Ground Lease with 12 APIAQ Limited Partnership 11.2. Adjustments to Required Coverage and Limits. Insurance requirements, including additional types of coverage and increased limits on existing coverages, are subject to change at Lessor's option and as necessary to cover Lessee's operations at the Airport. Lessee will accordingly comply with such new requirements within thirty(30)days following notice to Lessee. 11.3. Certificates. As a condition precedent to the effectiveness of this Lease, Lessee shall furnish Lessor with appropriate certificates of insurance signed by the respective insurance companies as proof that it has obtained the types and amounts of insurance coverage required herein. Lessee hereby covenants and agrees that not less than thirty(30) days prior to the expiration of any insurance policy required hereunder, it shall provide Lessor with a new or renewal certificate of insurance. In addition, Lessee shall, at Lessor's request, provide Lessor with evidence that it has maintained such coverage in full force and effect. 11.4. Additional Requirements. Lessee shall maintain its insurance with underwriters authorized to do business in the State of Texas and which are satisfactory to Lessor. The policy or policies of insurance shall be endorsed to cover all of Lessee's operations at the Airport and to provide that no material changes in coverage, including, but not limited to, cancellation, termination, non- renewal or amendment, shall be made without thirty (30) days' prior written notice to Lessor. 12. INDEPENDENT CONTRACTOR. It is expressly understood and agreed that Lessee shall operate as an independent contractor as to all rights and privileges granted herein, and not as an agent, representative or employee of Lessor. Lessee shall have the exclusive right to control the details of its operations and activities on the Premises and shall be solely responsible for the acts and omissions of its officers, agents, servants, employees, contractors, subcontractors, patrons, licensees and invitees. Lessee acknowledges that the doctrine of 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. Improved Ground Lease with 13 APIAQ Limited Partnership 13. LIABILITY AND INDEMNIFICATION. LESSEE HEREBY ASSUMES ALL LIABILITY AND RESPONSIBILITY FOR PROPERTY LOSS, PROPERTY DAMAGE AND/OR PERSONAL INJURY OF ANY KIND, INCLUDING DEATH, TO ANY AND ALL PERSONS, OF ANY KIND OR CHARACTER, WHETHER REAL OR ASSERTED, ARISING OUT OF OR IN CONNECTION WITH ITS USE OF OR OPERATIONS ON THE AIRPORT UNDER THIS LEASE OR WITH THE LEASING, MAINTENANCE, USE, OCCUPANCY, EXISTENCE OR LOCATION OF THE PREMISES OR ANY IMPROVEMENTS THEREON, EXCEPT TO THE EXTENT CAUSED BY THE GROSS NEGLIGENCE OR INTENTIONAL MISCONDUCT OF LESSOR, ITS OFFICERS,AGENTS,SERVANTS AND/OR EMPLOYEES. LESSEE COVENANTS AND AGREES TO, AND DOES HEREBY, INDEMNIFY, HOLD HARMLESS AND DEFEND LESSOR, ITS OFFICERS, AGENTS, SERVANTS AND EMPLOYEES, FROM AND AGAINST ANY AND ALL CLAIMS OR LAWSUITS FOR EITHER PROPERTY DAMAGE OR LOSS (INCLUDING ALLEGED DAMAGE OR LOSS TO LESSEE'S BUSINESS AND ANY RESULTING LOST PROFITS) AND/OR PERSONAL INJURY, INCLUDING DEATH, TO ANY AND ALL PERSONS, OF ANY KIND OR CHARACTER, WHETHER REAL OR ASSERTED, ARISING OUT OF OR IN CONNECTION WITH THE USE, LEASING,MAINTENANCE, OCCUPANCY, EXISTENCE OR LOCATION OF THE PREMISES OR ANYIMPROVEMENTS THEREON, EXCEPT TO THE EXTENT CAUSED BY THE GROSS NEGLIGENCE OR INTENTIONAL MISCONDUCT OF LESSOR, ITS OFFICERS, AGENTS, SERVANTS AND/OR EMPLOYEES. LESSEE ASSUMES ALL RESPONSIBILITY AND AGREES TO PAY LESSOR FOR ANY AND ALL INJURIES OR DAMAGES TO AIRPORT PROPERTY, THE PREMISES OR ANY IMPROVEMENTS THEREON WHICH ARISE OUT OF OR IN CONNECTION WITH ANY AND ALL ACTS OR OMISSIONS OF LESSEE, ITS OFFICERS, AGENTS, EMPLOYEES, CONTRACTORS, SUBCONTRACTORS, LICENSEES OR INVITEES, EXCEPT TO THE EXTENT CAUSED BY THE GROSS NEGLIGENCE OR INTENTIONAL MISCONDUCT OF LESSOR, ITS OFFICERS, AGENTS, SERVANTS AND/OR EMPLOYEES. LESSOR DOES NOT GUARANTEE POLICE PROTECTION TO LESSEE OR ITS PROPERTY LESSOR IS OBLIGATED ONLY TO PROVIDE SECURITY ADEQUATE TO MAINTAIN LESSOR'S CERTIFICATION UNDER FAA REGULATIONS. LESSEE SHALL COMPLY WITH ALL APPLICABLE REGULATIONS OF THE FAA RELATING TO AIRPORT SECURITY. LESSEE SHALL PAY ALL FINES IMPOSED BY THE FAA ON LESSOR OR LESSEE RESULTING FROM LESSEE'S FAILURE TO COMPLY WITH SUCH FAA REGULATIONS OR TO PREVENT UNAUTHORIZED PERSONS OR PARTIES FROM THEIR OBTAINING ACCESS TO THE AIR OPERATIONS AREA OF THE AIRPORT FROM THE PREMISES. Improved Ground Lease with 14 APIAQ Limited Partnership 4, 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 ten (10) calendar days. If Lessee fails to pay the balance.outstanding within such time, Lessor shall have the right to terminate this Lease immediately. 14.2. Breach or Default by Lessee. If Lessee commits any breach or default, other than Lessee's failure to pay rent, Lessor shall deliver written notice to Lessee specifying the nature of such breach or default. Lessee shall have thirty (30) calendar days following 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; provided, however, that in the event such breach or default cannot reasonably be cured within thirty(30) calendar days following such written notice, Lessee shall not be in default if Lessee commences to cure, adjust or correct the problem within such thirty(30) day period and thereafter diligently and in good faith pursues such cure, adjustment or correction to conclusion. 14.3. Failure to Construct Mandatory Improvements. If Lessee has not diligently commenced construction of the Mandatory Improvements to the Premises as set forth in Section 7.1 and Exhibit `B" within the timeframes specified therein,Lessor shall have the right to terminate this Lease immediately upon written notice to Lessee. 14.4. Rights of Lessor Upon Termination or Expiration. Upon termination or expiration of this Lease, title to all improvements on the Premises that Lessor does not own pursuant to Sections 7.1 or 7.2 and all fixtures and other items attached to any structure on the Premises shall pass to Lessor. In addition, all rights, powers and privileges granted to Lessee hereunder shall cease and Lessee shall vacate the Premises. Within twenty(20) days following the effective date of termination or expiration, Lessee shall remove from the Premises all trade fixtures, tools, machinery, equipment, materials and supplies placed on the Premises by Lessee pursuant to this Lease. After such time, Lessor shall have the right to take full possession of the Premises, by force if necessary, and to remove any and all parties and property remaining on any part of the Premises. Lessee agrees that it will assert no claim of any kind against Lessor, its agents, servants, employees or representatives, which may stem from Lessor's termination of this a Improved Ground Lease with 15 APIAQ Limited Partnership 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 (i) hand-delivered to the other party, its agents, employees, servants or representatives, or(ii)deposited in the United States Mail,postage prepaid, addressed as follows: To LESSOR: For Rent: For All Other Matters: City of Fort Worth Aviation Department Revenue Office 4201 N.Main Street, Suite 200 1000 Throckmorton Fort Worth,TX 76106-2749 Fort Worth,TX 76102 To LESSEE: Mr. Gary Havener APIAQ Limited Partnership P.O. Box 121697 Fort Worth,TX 76108 16. ASSIGNMENT AND SUBLETTING. 16.1. In General. Lessee shall have the right to sublease all or any portion of the Premises to API Acquisition Corporation d/b/a The Upholstery Shop, Inc. with the understanding that (i) Lessee will continue to be liable to Lessor for performance of the obligations of Lessee under this Lease and (ii) such sublease may not grant rights that are greater than those granted to Lessee under this Lease. Otherwise, Lessee shall not assign, sell, convey, sublease or transfer any of its rights, privileges, duties or interests granted by this Lease without the advance written consent of Lessor, which consent shall not be unreasonably withheld or delayed. 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 Improved Ground Lease with 16 APIAQ Limited Partnership originally executed this Lease. The failure or refusal of Lessor to approve a requested assignment or sublease shall not relieve Lessee of its obligations hereunder, including payment of rentals, fees and charges. 17. LIENS. 17.1. 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 upon thirty (30) days' written notice. However, Lessee's financial obligation to Lessor to liquidate and discharge such lien shall continue in effect following termination of this Lease and until such a time as the lien is discharged. Notwithstanding the above, Lessee may contest any such lien and may satisfy this Section 17.1 by bonding around any such lien. 17.2. Landlord's Lien. IN ADDITION TO ANY APPLICABLE STATUTORY LANDLORD'S LIEN, CONCESSIONAIRE GRANTS TO THE CITY, IN ORDER TO SECURE PERFORMANCE BY CONCESSIONAIRE OF ITS OBLIGATIONS UNDER THIS AGREEMENT, A SECURITY INTEREST I7V ALL GOODS, INVENTORY, EQUIPMENT, FIXTURES, FURNITURE, IMPROVEMENTS, CHATTEL PAPER, ACCOUNTS AND GENERAL INTANGIBLES, AND OTHER PERSONAL PROPERTY OF CONCESSIONAIRE NOW OR HEREAFTER SITUATED ON OR IN THE PREMISES OR OTHERWISE RELATING TO CONCESSIONAIRE'S USE OF THE PREMISES, AND ALL PROCEEDS THEREFROM (THE "COLLATERAL'). IF THE CITY TERMINATES THIS AGREEMENT FOR A FAILURE BY CONCESSIONAIRE TO PAY THE CITY MONTHLY COMPENSATION OR FOR ANY OTHER BREACH OR DEFAULT BY CONCESSIONAIRE, THE CITY MAY, IN ADDITION TO ALL OTHER REMEDIES, WITHOUT NOTICE OR DEMAND EXCEPT AS PROVIDED BELOW, EXERCISE THE RIGHTS AFFORDED A SECURED PARTY UNDER THE TEXAS UNIFORM COMMERCIAL CODE ("UCC"). I7V CONNECTION WITHANYPUBLIC OR PRIVATE SALE UNDER THE UCC, THE CITY SHALL GIVE CONCESSIONAIRE FIVE CALENDAR DAYS' PRIOR WRITTEN NOTICE OF THE TIME AND PLACE OF ANY PUBLIC SALE OF THE COLLATERAL OR OF THE TIME AFTER WHICH ANY PRIVATE SALE OR OTHER INTENDED DISPOSITION THEREOF IS TO BE MADE, WHICH IS AGREED TO BE A REASONABLE NOTICE OF SUCH SALE OR DISPOSITION. 18. TAXES AND ASSESSMENT'S. Improved Ground Lease with 17 APIAQ Limited Partnership 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. Lessee also agrees to pay any and all federal, state or local taxes or assessments which may lawfully be levied against Lessor due to Lessee's use or occupancy of the Premises or property placed on the Premises by Lessee as a result of its occupancy, including, but not limited to,the Mandatory Improvements and any Discretionary Improvements. 19. COMPLIANCE WITH LAWS,ORDINANCES,RULES AND REGULATIONS. Lessee covenants and agrees that it shall not engage in any unlawful use of the Premises. Lessee further agrees that it shall not pen-nit 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 of Airport Systems; 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. 20. NON-DISCRIMINATION COVENANT. Lessee, for itself, its personal representatives, successors in interest and assigns, as part of the consideration herein, agrees as a covenant running with the land that no person shall be excluded from participation in or denied the benefits of Lessee's use of the Premises on the basis of race, color, national origin, religion, handicap, sex, sexual orientation 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. Improved Ground Lease with 18 APIAQ Limited Partnership If any claim arises from an alleged violation of this non-discrimination covenant by Lessee, its personal representatives, successors in interest or assigns,Lessee agrees to indemnify Lessor and hold Lessor harmless. 21. LICENSES AND PERMITS. Lessee shall, at its sole expense, obtain and keep in effect all licenses and permits necessary for the operation of its operations at the Airport. 22. GOVERNMENTAL POWERS. It is understood and agreed that by execution of this Lease, Lessor does not waive or surrender any of its governmental powers. 23. NO WAIVER. The failure of either party 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 that party's right to insist upon appropriate performance or to assert any such right on any future occasion. 24. VENUE AND JURISDICTION. If any action, whether real or asserted, at law or in equity, arises on the basis of any provision of this Lease or of Lessee's operations on the Premises, venue for such action shall lie in state courts located in Tarrant County, Texas or,the United States District Court for the Northern District of Texas, Fort Worth Division. This Lease shall be construed in accordance with the laws of the State of Texas. 25. ATTORNE'Y'S' 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. 26. SEVERA]BILITY. Improved Ground Lease with 19 APIAQ Limited Partnership If any provision of this Lease shall be held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired. 27. FORCE MAJEURE. Lessor and Lessee shall exercise every reasonable effort to meet their respective obligations as set forth in this Lease, but shall not be held liable for any delay in or omission of performance due to force majeure or other causes beyond their reasonable control, including, but not limited to, compliance with any government law, ordinance or regulation, acts of God, acts of omission, fires, strikes, lockouts, national disasters, wars, riots, material or labor restrictions, transportation problems and/or any other cause beyond the reasonable control of Lessor or Lessee. 28. HEADINGS NOT CONTROLLING. Headings and titles used in this Lease are for reference purposes only and shall not be deemed a part of this Lease. 29. ENTIRE'L'Y 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 WITNES,~ REOF, the parties hereto have executed this Lease in multiples, this day of ~d 2000. [SIGNATURES FOLLOW] Improved Ground Lease with 20 APIAQ Limited Partnership CITY OF FORT WORTH: APIAQ LIMITED PARTNERSHIP, a Texas limited partnership: By: Cidema Corporation, a Texas corporation,its General Partner: By: / :.. By: �.d,.., Ramon Guajardo Gary W.H vener Assistant City Manager President ATTEST: ATTEST: By: City Vcretary APPROVED AS TO FORM AND LEGALITY: By: z -- Assistant City A ey M&C: L-12873 8-22-00 Improved Ground Lease with 21 APIAQ Limited Partnership STATE OF TEXAS § COUNTY OF § BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared Gary Havener, 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 Cidema Corporation, acting on behalf of APIAQ Limited Partnership as its General Partner, and that he executed the same as the act of Cidema Corporation and APIAQ Limited Partnership for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE thisi day of e4Czgl-t. , 2000. Yc� HETTIE LANE Notary Public,State of Texas My Commission Expires July 26,2003 Notary Public in and for the State of Texas 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 the City of Fort Worth for the purposes and consideration therein expressed and in the capacity therein stat GIVEN UNDER MY HAND AND SEAL OF OFFICE this_�day of � 2000. Notary Public in d for the tate of Texas NOTARY PUBLIC St'Ste of Texas Fgw Comm. Exp. 01.29-2002 Improved Ground Lease with APIAQ Limited Partnership I N �5 0° o U (1. U. C AL J 4° 08 ° zo NN 0;DSO `5 m $ b 8 Zoy- y UO G U pp D 4 p� d tl IL W ' .t0% 61 yyyy O J N =V) 8O.1 O°d Q K 4 Ito �' ((�y po p � Z'f D• 'C _ F_ DtlIs �v 56 � � � � � a 0��� �v °c vO 90 � � p•�d"'� r •�6 N v n Z (yam 8o v u° vo Cc l CM0 US iv ~O o8 °•°D pj{ c�t _ W N'Sn ai ADm ko of F U \ Ue o iii; t W O N \ r \ 6 z \ Y Sal'4513a \ o TR C"T 0 AC '$ ,785 6 c Q $ N81245'38 E`257.79' ' o S81'45"38'V 45.76' 288.75• J 4 >= L .27'o7-w 137.13' �1•a5'38^N- �g C° ry 1 .51' .y�_775.30' )- S81'45' 's \;\\�'• z Q¢ Hai.45'3a"E O p a `L4 )—<7 C.I. ` R •E-'40242' S81'45.38"M \ N81'45' 42' W -TRACT C. T $ 581.46 38'VI p 8 0.614 AC. $ 26.737 SF. E gI ° EXI-HBIT "A" PAGE 1 OF 5 0 Page I PROPERTY DESCRIPTION TRACT"A" FORT WORTH MEACHAM INTERNATIONALAIRPORT 4.610 acres of land situated in the S. A. and M. G. Railroad Company Survey, Abstract No. 1464, Tarrant County, Texas and being a portion of Block 1, and Lot B-1, Meacham Airport, an addition to the City of Fort Worth,Texas as recorded in Cabinet A, Slides 2445-2447, Plat Records of Tarrant County, Texas, said 4.610 acres of land and being more particularly described by metes and bounds using N.A.D. 27, Texas North Central Zone, State Plane Coordinates and Bearings as follows: COMMENCING.at the most easterly southeast comer of the aforementioned Lot B-1, in the westerly R.O.W. line of State Highway Spur No. 496 said southeast comer having State Plane Coordinates of X=2,043,884.08 and Y=422,713.70 according to the aforementioned plat of Meacham Airport; THENCE North, a distance of 96.94 feet; THENCE West, a distance of 53.80 feet to a chain link fence post found at the most easterly southeast and BEGINNING comer of the hereinafter described tract of land, said fence post having State Plane Coordinates of X= 2,043,830.27 and Y = 422,810.40; THENCE South 80 degrees 27 minutes 07 seconds West, a distance of 117.61 feet to a chain link fence post found; THENCE South 08 degrees 14 minutes 22 seconds East, a distance of 13.65 feet to a 1/2 inch iron rod with plastic cap stamped Landes&Assoc. set(hereinafter all iron rods set are marked the same; THENCE South 81 degrees 45 minutes 38 seconds West, a distance of 137.13 feet to a 1/2 inch iron rod set; THENCE North 08 degrees 14 minutes 22 seconds West, a distance of 18.00 feet to a 1/2 inch iron rod set; THENCE South 81 degrees 45 minutes 38 seconds West, a distance of 414.54 feet to a 1/2 inch iron rod set; THENCE North 08 degrees 10 minutes 20 seconds West, a distance of 134.50 feet to a 1/2 inch iron rod set; THENCE South 81 degrees 45 minutes 38 seconds West, a distance of 275.30 feet to a 1/2 inch iron rod set; THENCE South 36 degrees 50 minutes 30 seconds West, a distance of 33.00 feet to a 1/2 inch iron rod set; THENCE North 08 degrees 10 minutes 20 seconds West, a distance of 84.54 feet to a 1/2 inch iron rod set; THENCE South 55 degrees 55 minutes 18 seconds East, a distance of 31.55 feet to a 1/2 inch iron rod set; -1 '. E)MMIT "All PAGE 2 OF 5 Page 2 THENCE North 81 degrees 45 minutes 38 seconds East, a distance of 275.29 feet to a 1/2 inch iron rod set; THENCE North 08 degrees 10 minutes 20 seconds West, a distance of 130.00 feet to a 1/2 inch iron rod set; THENCE North 81 degrees 45 minutes 38 seconds East, a distance of 549.85 feet to a 1/2 inch iron rod set in a chain link fence; THENCE South 29 degrees 29 minutes 14 seconds East, along said fence, a distance of 328.49 feet to the PLACE OF BEGINNING and containing 200,797 square feet or 4.610 acres of land. See map of 3 tracts of land with even date prepared by James G. Ferguson, R.P.L.S. # 1956. OF •JAMES G.FERGUSON ..................... •�oFESSI�•• EXHIBIT "A" PAGE 3 OF 5 L&A#00126 Page 1 PROPERTY DESCRIPTION TRACT"B" FORT WORTH MEACHAM INTERNATIONAL,AIRPORT 0.615 of an acre of land situated in the S. A. and M. G. Railroad Company Surrey, Abstract No. 1464, Tarrant County, Texas and being a portion of Block 1, and Lot B-1, Meacham Airport, an addition to the City of Fort Worth, Texas as recorded in Cabinet A, Slides 2445-2447, Plat Records of Tarrant County, Texas, said 0.615 of an acre of land being more particularly described by metes and bounds using N.A.D. 27, Texas North Central Zone, State Plane Coordinates and Bearings as follows: COMMENCING at the most easterly southeast comer of the aforementioned Lot B-1, in the westerly R.O.W. line of State Highway Spur No. 496, said southeast comer having State Plane Coordinates of X=2,043,884.08 and Y= 422,713.70 according to the aforementioned plat of Meacham Airport; THENCE North, a distance of 96.94 feet; THENCE West, a distance of 53.80 feet to a chain link fence post found; THENCE South 80 degrees 27 minutes 07 seconds West, a distance of 117.61 feet to a chain link fence post found; THENCE South 08 degrees 14 minutes 22 seconds East, a distance of 13.65 feet to a 1/2 inch iron rod with plastic cap stamped Landes &Assoc. set(hereinafter all iron rods set are marked the same; THENCE South 81 degrees 45 minutes 38 seconds West, a distance of 137.13 feet to a 1/2 inch iron rod set; THENCE North 08 degrees 14 minutes 22 seconds West, a distance of 18.00 feet to a 1/2 inch iron rod set; THENCE South 81 degrees 45 minutes 38 seconds West, a distance of 146.75 feet to a 1/2 inch iron rod set.at the northeast and BEGINNING comer of the hereinafter described tract of land, said iron rod having State Plane Coordinates of X= 2,043,432.77 and Y= 422,754.52; THENCE South 08 degrees 14 minutes 22 seconds East, a distance of 100.00 feet to a 1/2 inch iron rod set; THENCE South 81 degrees 45 minutes 38 seconds West, a distance of 267.91 feet to a 1/2 inch iron rod set; THENCE North 08 degrees 10 minutes 20 seconds West, a distance of 100.00 feet to a 1/2 inch iron rod set; THENCE North 81 degrees 45 minutes 38 seconds East, a distance of 267.79 feet to the PLACE OF BEGINNING and containing 26,785 square feet or 0.615 of an acre of land. See ma of 3 tracts of land with even date E°�F TF-I' ~' P prepared by James G. Ferguson, R.P.L.S. # 1956. ,�: ,* 9- /13 . -L- ............... •.e.•:... JAMES G.FERGUSON EX�IlBIT ..A.. .......................... 1958 Qom;= L&A#00126 PAGE 4 OF 5 .'0 s�i� ` Page 1 PROPERTY DESCRIPTION TRACT"C' FORT WORTH MEACHAM INTERNATIONAL AIRPORT 0.614 of an acre of land situated in the S. A. and M. G. Railroad Company Survey, Abstract No. 1464, Tarrant County, Texas and being a portion of Block 1, and Lot B-1, Meacham Airport, an addition to the City of Port Worth, Texas as recorded in Cabinet A, Slides 2445-2447, Plat Records of Tarrant Couniyjexas, said 0.614 of an acre of land being more particularly described by metes and bounds using N.A.D. 27, Texas North Central Zone, State Plane Coordinates and Bearings as follows: COMMENCING at the most easterly southeast comer of the aforementioned Lot B-1, in the westerly R.O.W. line of State Highway Spur No. 496, said southeast comer having State Plane Coordinates of X=2,043,884.08 and Y=422,713.70 according to the aforementioned plat of Meacham Airport; THENCE North, a distance of 96.94 feet; THENCE West, a distance of 53.80 feet to a chain link fence post found; THENCE North 29 degrees 29 minutes 14 seconds West, along a chain link fence, a distance of 328.49 feet to a 1/2 inch iron rod with plastic cap stamped Landes &Assoc. set (hereinafter all iron rods set are marked the same; THENCE South 81 degrees 45 minutes 38 seconds West, a distance of 282.42 feet to a 1/2 inch iron rod set at the southeast and BEGINNING comer of the hereinafter described tract of land, said southeast comer having State Plane Coordinates of X=2,043,389.14 and Y= 423,055.83 according to the aforementioned plat of Meacham Airport; THENCE South 81 degrees 45 minutes 38 seconds West, a distance of 267.43 feet to a 1/2 inch iron rod set; THENCE North 08 degrees 10 minutes 20 seconds West, a distance of 100.00 feet to a 1/2 inch iron rod set; THENCE North 81 degrees 45 minutes 38 seconds East, a distance of 267.32 feet to a 1/2 inch iron rod set; THENCE South 08 degrees 14 minutes 22 seconds East, a distance of 100.00 feet to the PLACE OF BEGINNING and containing 26,737 square feet or 0.614 of an acre of land; See map of 3 tracts of land with even date prepared by James G. Ferguson, R.P.L.S. # 1956. E)CMIT "A" ...... PAGE 5 OF 5 JAMES G. FERGUSON ......................... 1958 o �"fA�L� L&A#00126 City. of For Worth., Texas "near and . COO"Cil . col"' Munication DATE REFERENCE NUMBER LOG NAME PAGE 8/22/00 L-12873 55UPHOLSTERY I I 1 1 of 2 SUBJECT UNIMPROVED GROUND' LEASE WITH -API ACQUISITION 'CORPORATION D/B/A THE UPHOLSTERY SHOP, INC.'FOR ''180,000'SQUARE FEET OF PROPERTY AT. MEACHAM INTERNATIONAL AIRPORT FOR THE CONSTRUCTION OF ONE 55,000 SQUARE FOOT HANGAR WITH RELATED IMPROVEMENTS RECOMMENDATION: It is recommended that the City Council'authorize the City Manager to execute an Unimproved Ground Lease for 180,000 square feet of property at Meacham 'International Airport known as Site 44N for the- construction of a 55,000 square foot hangar with associated ramp area. DISCUSSION: Gary Havener, President of API Acquisition Corporation d/b/a The Upholstery Shop, Inc. (The Upholstery Shop), requests to lease 180,000 square feet of property on the north end of Meacham International Airport (Airport) in order to construct a 55,000 square foot hangar and associated ramp area. The actual square footage will be contingent on a property survey to be conducted by the lessee. The lessee also desires to enter into a Right of First Refusal on a parcel adjacent to the lease site for future expansion. The lessee will pay$100.per year for the right. The Upholstery Shop offers custom. build-out for corporate aircraft with master craftsmen in every department, such as seating, cabinetry, on-board entertainment, and avionics. The service also includes coordination of the maintenance, as well as the exterior finishing. This proposal will develop one of the few remaining developable areas left on the Airport. The term of the proposed lease will be thirty years, commencing on the date of execution by both parties. The Upholstery shop will have the right to renew the lease for two additional consecutive terms of five years each. The estimated initial annual rent on the.development will be $34,200 per year, or $2,858 per month based on the approved rate of$0.19 per square foot (actual amounts will be dependent on the property. survey). The first rental payment, as well as the $100 expansion payment, shall be due upon the date that the first certificate of occupancy is issued for improvements constructed on the leasehold. The rate shall be subject to increase on October 1 st of any given year to reflect the upward change, if any, in the Consumer Price Index for the period since the last adjustment.`` All terms and°conditions will be in accordance with City policies. The proposed development is in accordance with the Airport Master Plan and is contingent on the _ Federal Aviation Administration airspace review. The property is located in COUNCIL DISTRICT 2. City of Fort Worth,*Texas "near and . Council. . ommunicaltion C DATE REFERENCE NUMBER ] LOG NAME GE 8/22/00 L-12873 55UPHOLSTERY 1 2 of 2 SUBJECT UNIMPROVED GROUND LEASE WITH API ACQUISITION- CORPORATION D/B/A THE UPHOLSTERY SHOP, INC. FOR 180,000 SQUARE FEET OF PROPERTY AT MEACHAM INTERNATIONAL AIRPORT FOR THE CONSTRUCTION Or ONE 55,000 SQUARE FOOT HANGAR WITH RELATED IMPROVEMENTS FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that the Revenue Section of the Finance Department will be responsible for the collection and deposit of funds due to the City under this lease. RG:I Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY Office by: (to) PE40 491352 0552001 $34,300.00 APPROVED Ramon Guajardo 6140 Originating Department Head: CITY COUNCIL Lisa A.Pyles 5400 (from) AUG 22 2000 Additional Information Contact: City Secretary 0.,010 City of Fort Worth,'faxau Luis Elguezabal 5401