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HomeMy WebLinkAboutContract 7920 CITY SECRETARY CO.idT.RAC� !V � FIXED BASE OPERATOR LEASE STATE OF TEXAS U COUNTY OF TARRANT U THIS CONTRACT AND LEASE AGREEMENT, made by and between the City of Fort Worth, State of Texas (hereinafter referred to as "Lessor"), and D. E. HANSEN of Tarrant County, Texas (hereinafter referred to as "Lessee"); W I T N E S S E T H WHEREAS Lessor owns and operates Meacham Field (hereinafter called "Airport"), located in the County of Tarrant, State of Texas; and WHEREAS Lessor deems it advantageous to itself and to its operation of the Airport to lease unto Lessee certain privileges, rights, uses and interests therein, as hereinafter set out; and WHEREAS Lessee proposes to lease on a generally net basis from Lessor certain ground space, and to avail itself of certain privileges, uses and rights pertaining thereto; and WHEREAS Lessee further proposes to make certain improvements on the ground demised hereunder, and WHEREAS Lessee has indicated a willingness and ability to property keep, maintain, and improve said premises in accordance with standards established by Lessor,- if granted a lease of sufficient term on said ground areas; and WHEREAS the City of Fort Worth and D. E. Hansen now desire to execute a lease of an area of land at Meacham Field providing for the construction of aviation-related improvements thereon, said lease being in addition to other existing leases at Meacham Field between D. E. Hansen and the City of Fort Worth. NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS, ARTICLE I That for and in consideration of the terms, conditions and covenants of this Lease to be performed by Lessee, all of which Lessee accepts, Lessor hereby leases to Lessee and Lessee hereby hires from Lessor certain property, OFFICIAL RECD � CITY SECRETARY FT. WORTH, TEX. together with any improvements thereon (hereinafter called "demised premises"), and certain attendant privileges;uses and rights; as hereinafter specifically set out. A. DESCRIPTION OF PREMISES DEMISED. The demised premises hereby leased are: A tract of land adjacent'' to `North Main Street and east of the taxiway serving former Runway 31.as delineated in red and identi- fied as Location 1 on'the',attached Exhibit "A" for the purpose of describing and identifying the area leased hereunder. B. DESCRIPTION OF GENERAL PRIVILEGES, USES AND RIGHTS. Lessor hereby grants to Lessee the following general privileges, uses and rights, in common with others, all of which shall be subject to the terms, conditions and covenants hereinafter set forth and all of which shall be non-exclusive on the Airport; (1) The use in common with the public generally of all public airport facilities and improvements which are now or may hereafter be connected with or appurtenant to said Airport,, except as hereinafter provided, to be used by Lessee for commercial or non-commercial aviation activities and fixed base operations, and all activities in connection with or incidental to said business or operation, as herein defined. For the purpose of this Lease, "Public airport facilities" shall include 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 facili- ties, public terminal facilities, or other public,. facilities appurtenant to said Airport. (2) The right of ingress to and egress from the demised premises over and across public roadways serving the Airport for Lessee, his agents and servants, patrons and invitees, suppliers of service and furnishers of material. (3) Said rights above shall be subject to such ordinances, rules and regulations as now or may hereafter have application at the Airport. C. DESCRIPTION OF SPECIFIC PRIVILEGES, USES AND RIGHTS. In addition to the general privileges, uses and rights hereinabove described and without limiting the generality thereof, Lessor hereby grants to Lessee the right to engage in commercial aviation activities, as defined in Paragraph D below, subject to the conditions and covenants hereinafter set out. D. DEFINITION OF COMMERCIAL AVIATION ACTIVITIES AND FIXED BASE OPERATION. "Commercial Aviation Activities and Fixed Base Operation" are hereby defined as those activities which involve the sale of aviation services for profit 2 - to the general public. Said aviation services shall include: (1) The loading and unloading of aircraft in any lawful activity as incidental to the conduct of any services or operations outlined in this paragraph. (2) The maintenance, repair and storage of aircraft, which shall include overhauling, rebuilding, repairing, in- spection and.licensing of same, and the purchase and sale of parts, equipment and accessories therefor. (3) 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. (4) The training on the Airport of personnel in the employ of Lessee and/or Lessee's tenants and sub- lessees and the training on the Airport of members of the general public generally as students, or otherwise in any art, science, craft or skill per taining directly or indirectly to aircraft. (5) The location, construction, erection, maintenance and removal of improvements, in any lawful manner, upon or in the demised 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. (6) The operation and sale of sightseeing service. (7) The operation and sale of aerial survey, photography and mapping services. (8) The operation of non-scheduled air taxi and charter transportation of passengers. (9) The operation of schools for the instruction of flying, navigation, mechanics, aerial survey, photography, aircraft design, theory and con- struction. (10) The renting and'ileasing of space in hangars to be constructed hereunder for the private storage of aircraft on a daily, weekly, monthly, or annual basis. (11) Subject to the prior written approval of Lessor, the undertaking of any phase of aviation activity in any way contributing to air transportation or aerial navigation. E. CONDITIONS OF GRANTING LEASE. The granting of this Lease is conditioned upon the following covenants: (1) That the right to use said public airport facilities as well as any and all of Lessee's rights hereunder shall be exercised only sub- ject to and in accordance with the laws of the United States of America, the State of 3 - Texas, and the' City of Fort Worth; the rules and regulations promulgated by.their authority with reference to aviation and air navigation; and all applicable rules and regulations and ordinances of Lessor now in force or hereafter ordained or promulgated. (2) That Lessee will not, on the grounds of race, color or national origin, discriminate or permit discrimination against any person or group of persons in any manner prohibited by Federal Aviation Administration regulations. ARTICLE II OBLIGATIONS OF LESSOR A. CLEAR TITLE. Lessor covenants and agrees that at and until the granting of this Lease it is well seized of the leased premises and has good title thereto, free and clear of all liens and encumbrances having priority over this Lease; and that Lessor has full right and authority to lease the same as herein set forth. Lessor further covenants that all things have happened and been done to make its granting of said Lease effective and Lessor warrants to Lessee peaceful possession and quiet enjoyment of the leased premises during the term hereof, upon performance of Lessee's covenants herein. B. OPERATION AS A PUBLIC AIRPORT. Lessor covenants and agrees that during the term of this Lease that it will operate and maintain the Airport and its public airport facilities, as defined hereinabove, as a public air- port consistent with and pursuant to the Sponsor's Assurances given by Lessor to the United States Government through the Federal Airport Act. C. CONDITION AND MAINTENANCE OF PREMISES. Upon execution of this agree- ment, Lessor shall assume no further responsibility as to the condition of all the premises demised hereunder and shall not assume responsibility for maintenance, upkeep, or repair necessary to keep said premises in a safe and serviceable condition. ARTICLE III OBLIGATIONS OF LESSEE A. NET LEASE. Except as herein specifically provided, the use and occupancy of the demised premises by Lessee shall be without cost or expense to Lessor. It shall be the sole responsibility of Lessee to keep, maintain, - 4 - repair and operate the entirety of all the premises leased_hereunder`and all improvements and facilities thereon at Lessee's sole cost and expense. B. CONDITION OF PREMISES. Lessee accepts all the premises demised hereunder in their present condition, and, without expense to Lessor, will repair and maintain any installation thereon, and remove or cause to be removed any debris to the extent required ,to keep said premises in a neat and presentable condition at all times C. OBLIGATION TO CONSTRUCT. Lessee shall provide for the location, construction, erection and maintenance of improvements upon the demised premises for the purpose of carrying out the activities provided for herein. Said improvements shall include: Construction on Location 1 as shown on Exhibit "A", one large all metal, colored Hangar with the building erected on a concrete slab, with a paved ramp and taxi- way connecting the Hangar with the general taxiway. All plans and specifications for the construction of building and improvements and other .f acilities (including landscaping) contemplated hereunder shall be prepared as hereinafter set out and shall require the written approval of Lessor before any construction or installation may be undertaken. D. MINIMUM IMPROVEMENT STANDARD. As part of the consideration herefor, Lessee further covenants and agrees that it shall construct said hangar facilities in the hangar area as set forth in Exhibit "A" to the minimum extent of eighteen thousand (18,000) square feet of building space and to expend on such construction an estimated sum of One Hundred Ninety Five Thousand and no/100 Dollars ($195,000.00). E. SUBMISSION OF PLANS. Within ninety days after the approval of this Agreement by the City Council of the City of Fort Worth, Lessee shall submit to Lessor final plans and specifications for the construction of the improvements and facilities contemplated hereunder. All plans, specifications and work shall be subject to the approval of the Director of Public Works and must conform to all local, State and Federal codes, laws, ordinances and regulations now in force or hereafter prescribed by authority of law. Lessee shall at its sole cost and expense obtain all necessary licenses and permits and all payment and performance bonds. - 5 - ......... ... F. CONSTRUCTION SCHEDULE. All construction shall be completed within 150 days after execution hereof on behalf of Lessor. Upon completion of construction, title to all permanent improvements shall vest in Lessor. 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 leased premises at any time by Lessee except as otherwise provided in this Lease. G. MAINTENANCE. Lessee shall, at its sole cost and expense, maintain all the premises demised hereunder and the improvements 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 said premises caused by its employees, patrons, or its operation thereon, shall maintain and repair all equipment thereon, including 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 installa- tions at its sole expense, subject to the approval of Lessor and in accordance with all applicable Federal, State and municipal laws or regulations. Lessor in its reasonable discretion shall be the sole judge of the quality of maintenance. Upon 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 demised premises and perform such maintenance, the cost of which shall be borne by Lessee. H. COMMERCIAL AVIATION OPERATIONS BY LESSEE. Lessee agrees that.any commercial aviation operations on the premises shall be conducted in a proper, efficient and courteous manner. Lessee agrees to promote aviation activity on the Airport. Lessee further agrees that all said services shall be furnished on a fair, equal and non-discriminatory basis to all users thereof, and that only 6 - fair, reasonable and non-discriminatory prices for each unit of sale of service will be charged. I. UTILITIES. Lessee shall assume and pay for all costs or charges for utility services furnished to Lessee during the term hereof. Lessee shall have the right to connect to any and all storm and sanitary sewers and all water and public utilities at its own cost and expense, and Lessee shall pay for any and all service charges incurred therefor. Lessor agrees to provide water, sewer, gas and electricity service to the lease line; pay- ment to be as provided in Article V B. J. TRASH, FIRE EXTINGUISHERS, ETC. Lessee shall provide a complete and proper arrangement for the adequate sanitary handling and disposal away from the Airport of all trash, garbage, and other refuse caused as a result of the operation of its business. Lessee shall provide and use suitable covered metal receptacles for all such garbage, trash and other refuse. Piling of boxes, cartons, barrels or other similar items in an unsightly or unsafe manner on or about the demised premises shall not be permitted. Lessee shall also provide and maintain in proper condition readily accessible fire extinguishers in a number and of a type approved by fire underwriters for the particular hazard involved. K. SIGNS. Lessee shall not maintain upon the outside of any improvements or elsewhere on the demised premises any billboards or advertising signs with- out the prior written consent of the Aviation Director. Flashing lighted signs shall be prohibited. L. FIELD USE CHARGES. Nothing herein shall be deemed to relieve Lessee and its tenants, sublessees, patrons, invitees, and others from such field use charges, including fuel flowage fees, as are levied generally by Lessor directly or indirectly at the Airport. M. PREFERENCE LIEN. Lessee hereby gives, grants and pledges unto Lessor a contractual preference lien upon all property, tangible or intangi- ble, and property rights belonging to Lessee now or at any time hereafter placed in or upon the demised 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. - 7 - ARTICLE IV TERM OF LEASEHOLD A. TERM. The term of this lease shall be for a period of thirty (30) years commencing August 1, 1974, and ending July 31, 2004. If Lessee exer- cises and performs all of its duties and obligations hereunder during the term hereof, then upon applying in writing not less than six months nor more than nine months before the end of the said term, Lessee shall have the first right of refusal to execute a new lease of the demised premises for two addi- tional consecutive five-year periods, with each lease for such additional period to be on such terms and conditions as Lessor may prescribe and with the rentals provided for therein to be based on rental rates of comparable properties at Meacham Field at the time of the execution of each additional lease agreement. ARTICLE V A. GROUND RENTAL. For the ground area leased hereunder, shown in red on Exhibit "A", Lessee shall pay to Lessor an annual ground rental of Four Thousand One Hundred Forty and no/100 Dollars ($4,140.00) for each year of the term. Rental will commence on dfite of occupancy by Lessee or August 1, 1974, whichever is earlier. B. UTILITIES SERVICE. As a special provision of this lease, Lessee agrees to advance the payment of the expense of extending water, sanitary sewer, gas and electricity service to the lease line (the estimated amount of such expense being $6,500.00) the actual amount as expended by Lessee to be recovered from Lessor through the credit of rental payments hereunder each month commencing August 1, 1974, and continuing until the aggregate of such credits by Lessor shall equal the total amount so expended and ad- vanced by Lessee. Lessee agrees to furnish evidence satisfactory to Lessor to establish the amount actually expended for the extension of utility services to the lease line as aforesaid. C. ADJUSTMENT OF RENTALS. Upon written notice from Lessor to Lessee delivered within 30 days prior to the end of each five (5) year period - 8 - during the term of this Lease, Lessor shall have the right but not the duty to adjust the ground rental payable hereunder to conform same to rentals then prevailing at the airport for comparable ground space, said increase not to exceed ten percent (10%) of the amount theretofore payable. D. TIME OF PAYMENT. All rentals shall be paid monthly in advance, in amounts each month equal to one-twelfth (1/12) of the annual rental, the first payment being due on or before the first day of August, 1974, and a like pay- ment shall be due on or before the first day of each successive month there- after during the term hereof. ARTICLE VI INSURANCE AND INDEMNIFICATION A. FIRE INSURANCE. During the full term of this Lease, Lessee shall, at its sole cost and expense, cause all improvements constructed in the demised premises as set forth on Exhibit "A", to be kept insured to the full insurable value thereof against the perils of explosion, fire and like perils. Said insurance shall be procured from a company authorized to do business in the State of Texas and satisfactory to Lessor, and Lessee shall provide evidence satisfactory to Lessor that such coverage has been procured and is being maintained. The proceeds of any such insurance paid on account of any of the perils aforesaid shall be used to defray the cost of repairing, restoring or re- constructing said improvements, as necessary in the opinion of Lessor. Property insurance policies required by this paragraph shall contain waiver of subrogation endorsements and shall contain a provision that no change, cancellation or renewal of such insurance shall take effect until at least 30 days after notice thereof in writing has been delivered to Lessor. B. INDEMNIFICATION. Lessor shall stand indemnified by Lessee as herein provided. Lessee is and shall be deemed to be an independent contractor and operator responsible to all parties for its respective acts or omission, and Lessor shall in no way be responsible therefor. Lessee covenants and agrees to indemnify, hold harmless and defend Lessor, its agents, servants or employees - 9 - 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 subcontrac- tors; 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 of Lesseets conduct or inactivity. Lessee shall promptly, after the execution of this Lease, provide public liability insurance for personal injuries/death growing out of any one accident or other cause in a minimum sum of One Hundred Thousand Dollars ($100,000:00) for one person and Three Hundred Thousand Dollars ($300,000.00) for two or more persons; and shall provide property damage liability insurance in a minimum sum of Three Hundred Thousand Dollars ($300,000.00) for property damage growing out of any one accident or other cause. Lessee shall maintain said insurance with insurance underwriters authorized to do business in the State of Texas and approved by Lessor. Lessee shall furnish Lessor with a certificate from the insurance carrier showing such insurance to be in full force and effect during the entire term of this Lease, or shall deposit with Lessor copies of said policies. Said policies or certificates shall contain a provision that written notice of cancellation or of any material change in said policy by the insurer shall be delivered to Lessor thirty (30) days in advance of the effective date thereof. C. PERFORMANCE BONDS. At any time that Lessee undertakes construction of any improvements, Lessee shall, at its own cost and expense, cause to be made, executed and delivered to Lessor, two'sepatate bonds in accordance with Article 5160 of the Revised Civil Statutes of Texas as follows: - 10 - (1) Prior to the date of commencement of construction, a contract surety bond in a sum equal to the full amount of the construction contract awarded. Said boind.shall.be drawn in a form and from such company as approved by Lessor; shall guarantee the faithful performance of necessary.construction and completion of improve- ments in accordance with approved final plans and detailed speci- fications; and shall guarantee Lessor against any losses and liability, damages, expenses, claims and judgments caused by or resulting from any failure of Lessee to perform completely the work described as herein provided. (2) Prior to the date of commencement of construction, a payment bond with Lessee's contractor or contractors as principal, in a sum equal to the full amount of construction contract awarded. Said bond shall guarantee payment of all wages, for labor and services engaged and of all bills for materials, supplies, and equipment used in the performance of said construction contract. ARTICLE VII CANCELLATION ASSIGNMENT AND TRANSFER A. CANCELLATION BY LESSOR. This Lease shall be subject to cancellation by Lessor in the event Lessee shall: (1) Be in arrears in the payment of the whole or any part_of the amounts agreed upon hereunder for a period of fifteen (15) days after the time such payments become due. (2) Make a voluntary assignment for the benefit of creditors. (3) File a voluntary petition in bankruptcy. (4) Abandon the demised premises. (5) Fail to replace any improvements by Lessee which have been destroyed by fire, explosion, etc., within six (6) months from the date of such destruction, or, (6) Default in the performance of any of the covenants, and conditions required herein. In any of the aforesaid events, Lessor may forcibly, if necessary, reenter and take immediate possession of the demised premises and remove or seize Lessee's effects under the preference lien granted to secure performance of Lessee's obligations hereunder without being deemed guilty of any nature of trespass. This lease, or a copy hereof, shall be sufficient warrant for any person. Upon reentry by Lessor under this paragraph, this Lease shall terminate. All rental due hereunder shall be payable.to said date of termination. - 11 - Failure of Lessor to declare this .Lease.terminated upon the default of Lessee for any of the reasons set out shall not operate to bar or destroy the right of Lessor to cancel this Lease by reason of any subsequent default or violation of the terms hereof. B. ASSIGNMENT AND TRANSFER. This .Lease shall not be assigned in whole or in part by Lessee without the prior written consent of Lessor, and any attempted assignment without such prior written consent shall be void. C. SUSPENSION OF LEASE. During the time of war or national emergency, Lessor shall have the right to lease the landing area of any part of said Airport to the United States Government for military or naval use. If any such lease is executed, any provisions of this instrument which are incon- sistent with the provisions of the lease to the Government shall be suspended. Nothing contained in this lease shall prevent Lessee from pursuing any rights which Lessee may have for reimbursement from the United States Government for the taking of any part of this leasehold or for any loss or damage caused to Lessee by the United States Government. .ARTICLE VIII RIGHTS UPON TERMINATION A. PERSONAL PROPERTY. Upon termination of this Lease other than under Article VII A hereof, Lessee shall immediately remove all personal property from the demised premises and return the premises and improvements thereon to Lessor in a good state of repair. Any property remaining on the premises after termination shall, at Lessor's sole option, become the property of Lessor or same may be removed and/or disposed of in any manner deemed appropriate by Lessor, and the cost and expense of such removal and/or disposition shall be paid by Lessee. ARTICLE IX GENERAL PROVISIONS A. CONCESSIONS EXCLUDED. It is specifically agreed and stipulated that the following concessions and the establishment thereof are excluded from this Lease, to wit: (1) Ground transportation for hire. (2) Auto rental. - 12 - (3) Food Sales. (4) News and sundry sales. (5) Barber and valet service. (6) Alcoholic beverages. (7) Aviation fuel sales. B. OPTION TO LEASE LAND. For and in consideration of the paymentby- Lessee to Lessor of the sum of $1,000 cash in hand paid on the effective date of this lease, Lessor grants to Lessee the option to lease the areas shown in green on the attached Exhibit "A" marked locations 2, 3, 4, 5, 10 and 11 at Meacham Field at not less than $.08 per square foot per year or for such rates as may then be generally in force at Meacham Field for similar property if such rates are great- er then $.08 per square foot per year. Lessee will have two years to exercise his option on Location 2 after the completion of the proposed spine Taxiway Q as shown on Exhibit "A" to a point opposite that location, two years to exercise his option on Location 3 after the completion of the proposed Taxiway Q as shown on Exhibit "A" to a point opposite that location, two years to exercise his option on Location 4 after the completion of the proposed Taxiway Q as shown on Exhibit "A" to a point opposite that location, and two years to exercise his option on Location 5 after the completion of the proposed Taxiway Q as shown on Exhibit "A" to a point opposite that location. Lessee will have one year from the effective date of this lease to exercise his option on.Location 10 and shall have two years from the effective date of this .lease to exercise his option on Location 11. Anything to the contrary herein notwithstanding each option here- in shall be void unless exercised in writing no later than August 1, 1979. It is understood that the City has no immediate plans to construct Taxiway Q and is under no obligation to do so. In the event of any dispute as to the nature of Lessee's said option as to the terms and rates to be incorporated in any new lease as contemplated hereunder, such dispute shall be decided by the City Council of the City of Fort Worth, and the decision of such Council shall be final. C. ATTORNEY'S FEES. In any action brought by Lessor for the enforcement of the obligations of Lessee, Lessor shall be entitled to recover interest and reasonable attorney's fees. - 13 - D. TAXES. Lessee agrees to.pay any taxes or assessments which may be lawfully levied against Lessee's occupancy or use of the demised premises or any improvements or property placed thereon as a result of Lessee's occupancy. E. SUBORDINATION OF LEASE. This Lease shall be subordinated to the provisions of any existing or'future agreement between Lessor and the United States relative to the operation or maintenance of the Airport, the execution of which has been or may be required as a condition precedent to the expenditure of Federal funds for the development of the Airport. F. PARAGRAPH HEADINGS. The paragraph headings contained herein are for the convenience in reference and are not intended to define or limit the scope of any provision of this lease. G. NOTICES. Notices to Lessor provided for herein shall be sufficient if sent by registered mail, postage paid, addressed to Aviation Director, Fort Worth Municipal Airport, Meacham Field, Fort Worth, Texas, and notices to Lessee if sent by registered mail, postage prepaid, addressed to D. E. HANSEN, Meacham Field, Fort Worth, Texas, or to such other addresses as the parties may designate to each other in writing from time to time. H. SUCCESSORS AND ASSIGNS. All of the terms, covenants, and agreements herein contained shall be binding upon and shall inure to the benefit of successors and assigns of the respective parties hereto. I. VENUE. The venue of any action brought on this contract shall lie in Tarrant County, Texas. EXECUTED at Fort Worth, Tarrant County, Texas, this VC day of 1974. Pr ATTEST: D. E. HANSEN, LESSEE Cl' y Secretary APPROVED AS TO=FORM AND LEGALITY: CITY OF FORT WORTH, LESSOR • 9 By: City Attorney City Manager - 14 - City of Fort Worth, Texas Mayor and Council Communication DATE REFERENCE SUBJECT: Don E. Hansen, d.b.a. Meacham PAGE 6/28/74 NUMBER Aero Lease - Meacham Field 1 C-2843 i °t- Don E. Hansen, an individual doing business as Meacham Aero, wishes to lease 69,000 square feet of unimproved ground facing North Main Street located . approximately 375 feet south of the extended centerline of Runway 27 and design- ated as Location 1 on the attached exhibit. The location is in keeping with the Carter and Burgess, Inc.'s study and recommendations dated May 27, 1974, and will be the first development in the new area. Mr. Hansen proposes to construct an 18,000 square foot hangar with approximately 13,000 square feet of aircraft park- ing on the location. His tenant for the new hangar will be Piper Southwest, Inc. Term of the lease will be for thirty years beginning on August 1, 1974, and end- ing on July 31, 2004, with two five-year options. Rental will be at the rate of $.06 per square foot per year for annual ground rental of $4,140. Rental rates may be adjusted every five years to reflect current rates for comparable land on the airport. Hangar and ramp construction costs will be approximately $195,000. As a special provision of the lease, Mr. Hansen agrees to advance the payment of the expense of extending water, sanitary sewer, gas and electricity to the lease line. It is estimated by the utility companies involved that the utilities can be relocated for $6,500. The actual amount of Mr. Hansen's expenditure will be recovered from the City of Fort Worth through the credit of rental payments hereunder each month commencing August 1, 1974, and continuing until the aggre- gate of such credits by the City of Fort Worth shall equal the total amount _ advanced by Mr, Hansen, Mr. Hansen will furnish evidence satisfactory to the City to establish the amount actually expended for the extension of utility service to the lease line, Mr. Hansen further wishes to be granted options to lease additional land as identified on the attached exhibit as Locations 2, 3, 4, 5, 10 and 11. He would have two years to exercise his options on Locations 2, 3, 4, and 5 after com- pletion of the proposed Taxiway Q, to a point opposite each of these locations. Mr. Hansen would have one year from the effective date of the lease to exercise his option on Location 10 and two years on Location 11. Upon the exercise of any option, rental would be at not less than $.08 per square foot or such rates as may then be generally in force for similar property if such rates are greater than $.08 per square feet per year. As consideration for the options to lease Locations 2, 3, 4, 5, 10 and 11, Mr. Hansen proposes to pay to the City of Fort Worth $1,000 upon signing of the lease. He understands that the City has no immediate plans to construct Taxiway Q and is under no obligation to do so. Recommendation The Aviation Board at its meeting on June 19, 1974 recommended that the City Council approve the lease with Don E. Hansen as noted above, RNL;hlc Attachment SUBMITTED BY: DISPOSITIO Y COUNCIL: PROCESSED BY n APPROVED [I OTHER (DESCRIBE) A5 - CITY SECRETARY DATE ANAGE CITY MR -�0�'7� City of' Fort Worth, Texas Mayor and Council, Communication DATE REFERENCE SUBJECT: Change of Lease.Effective Date - PAGE NUMBER Meacham Aero, Inc. - Meacham 1 11/4/74 C-2955 Field loe_ On June 28, 1974, the City Council approved M&C C-2843 authorizing Don E. Hansen to lease (City Secretary Contract No. 792 ) 69,000 square feet of land on Meacham Field for construction of an 18,000 square foot hangar. Rental payments of 342 per month were to begin on August 1, 1974. Mr. Hansen re uests waiver of the rental payments until December 1, 1974, and cites as justification late de ivery of essential construction materials, the short time allowed between approval of the lease by City Council and the effective date of the lease, and a delay in the installation of utili- ties by the City. The amount of rental fees is $1,368 for the four month term involved. f In a regularly scheduled meeting on October 22, 1974, the Aviation Board recommended approval of Mr. Hansen's request. City Council consideration is requested. RNL:ms SUBMITTED BY: DISPOSITIO Y COUNCIL: PROCESSED BY APPROVED ❑ OTHER (DESCRIBE) �n CITY SECRETARY DATE,�j 7 CITY MANAGER r City of Fort Worth, Texas Mayor and Council communication DATE REFERENCE SUBJECT: PAGE NUMBER Amendment to City Secretary Contract No. 7920-- Delay of Rental-- 1 6/1/76 C-3416 Meacham Aero, Inc.On June 28,1974, the City Council approved M & C C-2843 authorizing Don E. Hansen to lease 69,000 square feet of land on Meacham Field for construction of an 18,000 square foot hangar (City Secretary Contract 'o. 7920). Rental payments of $342 per month were to begin on August 1, 1974. On September 10, 1974, Mr. Hansen requested waiver of the rental payments until December 1, 1974, citing as justification late delivery of essential construction materials, the short time allowed between approval of the lease by the City and the effective date of the lease, and a delay in the installation of utilities by the City. On November 11, 1974, the City Council approved Mr. Hansen's request (M & C C-2955). By letter dated January 2, 1975, Mr. Hansen requested that rental payments be waived again until February 1, 1975, citing as justification that the City had not paved a road in front of his building, Mr. Hansen further stated that his tenants would not accept the building because of lack of access and the muddy conditions of the surrounding area. On March 18, 1975, the Aviation Board approved the request. On reviewing the contract files, the Aviation Department has determined that this action has not come before the City Council for consideration. Recommendation It is recommended that the City Council approve the change in the effective date of City Secretary Contract No. 7920 from December 1, 1974 to February 1, 1975. JMT;jc SUBMITTED BY: DISPOSITION BY COUNCIL: PROCESSED 8Y ❑ APPROVED ❑ OTHER (DESCRIBE) / CITY SECRETARY ..� DATE CITY MANAGER I � I I II T _ I rwy F IUD, { r ------------ ------ TWY Is, I�I V � � a�i•�. m�"�J�.� �� I' I' I p I I Iz I � W ? i HANGAR AREA AT TwY MEACHAM FIEF II , I I w,n.c sxa a rm. o EXHIBIT A . I