HomeMy WebLinkAboutResolution 4611-03-2016 A Resolution
NO. 4611-03-2016
DIRECTING THE CITY MANAGER TO ENTER INTO
NEGOTIATIONS FOR THE EARLY TERMINATION OF THE
FACIL IITES LEASE AGREEMENT WITH TEXAS AE RO ENGINE
SERVICES, LLC FOR LEASED PREMISES LOCATED AT THE
ALLIANCE FORT WORTH MAINTENANCE BASE AND EXECUTE A
LEASE AMENDMENT
WHEREAS, the City of Fort Worth ("City") entered into a lease agreement ("Lease") with
Texas Aero Engine Services, LLC ("TAESL") (City Secretary Contract No. 46530) effective February
5, 2015 for the leased premises located at 2100, 2102 and 2112 Eagle Parkway, Fort Worth, Texas, at
the Alliance Fort Worth Maintenance Facility("Leased Premises"); and
WHEREAS, the Lease provided for a term through January 2025, but with several early
termination options at specific dates, provided TAESL gave a one-year written notice of the intent to
exercise the early termination option;
WHEREAS, pursuant to corporate changes at TAESL, TAESL exercised the early termination
option to be effective as of January 31, 2017, by giving the required written notice, and as of the date of
this Resolution has already vacated the majority of the Leased Premises;
WHEREAS, TAESL owns equipment at the Leased Premises that it intends to sell by auction by
April 1, 2016;
WHEREAS, City is exploring the potential enhanced marketability of the Leased Premises with
the equipment remaining at the Leased Premises and City staff desires the authorization to negotiate
with TAESL a sixty day delay of the equipment auction in exchange for an earlier termination date of
the Lease.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS:
1. That the City Council hereby directs the City Manager to enter into
negotiations with TAESL for the early termination of the Lease under the following
conditions:
a. The Lease would terminate on September 30, 2016, for an early exit
payment of $2,200,000 from TAESL to the City, with no further rent or
operation costs due from TAESL to the City, but all other liabilities in
the Lease shall remain in effect;
b. TAESL would not auction the equipment for sixty (60) days from the
date of the Lease Amendment;
c. TAESL will remove all equipment and other personal property at the end
of the Lease, and make any necessary repairs to the Leased Premises as a
result of the removal; and
d. TAESL will make any necessary repairs to inoperable systems in the
Leased Premises that were operational when TAESL occupied the
Leased Premises.
2. That the City Council directs the City Manager to execute a Lease
amendment with TAESL on substantially the same terms as set forth herein.
Adopted this 29thdayVlarch, 2016. ATTEST:
z1ary J. yser, City Secretary
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