HomeMy WebLinkAboutOrdinance 22133-03-2016 ORDINANCE NO.22133-03-2016
AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE AVIATION GAS LEASE CAPITAL PROJECT
FUND IN THE AMOUNT OF$900,000.00,FROM AVAILABLE FUNDS,FOR THE
PURPOSE OF A CONSTRUCTION LOAN AGREEMENT WITH FWS REALTY,
LTD.; PROVIDING FOR A SEVERABILITY CLAUSE; MAKING THIS
ORDINANCE CUMULATIVE OF PRIOR ORDINANCES; REPEALING ALL
ORDINANCES IN CONFLICT HEREWITI3; AND PROVIDING AN EFFECTIVE
DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH,
TEXAS:
SECTION 1.
That in addition to those amounts allocated to the various City departments for Fiscal Year 2015-2016 in the
Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the
Aviation Gas Lease Capital Project Fund in the amount of $900,000.00, from available funds, for the
purpose of a construction loan agreement with FWS Realty,LTD.
SECTION 2.
That should any portion, section or part of a section of this ordinance be declared invalid, inoperative or
void for any reason by a court of competent jurisdiction, such decision, opinion or judgment shall in no way
impair the remaining portions, sections, or parts of sections of this ordinance, which said remaining
provisions shall be and remain in full force and effect.
SECTION 3.
That this ordinance shall be cumulative of Ordinance No. 21873-09-2015 and all other ordinances and
appropriations amending the same except in those instances where the provisions of this ordinance are in
direct conflict with such other ordinances and appropriations, in which instance said conflicting provisions
of said prior ordinances and appropriations are hereby expressly repealed.
SECTION 4.
This ordinance shall take effect upon adoption.
APPROVED AS TO FORM AND LEGALITY:
Paige Meb e,Assistant ity Attorney ary J.Kay ity tary
ADOPTED AND EFFECTIVE:March 29,2016
Ordinance No.22133-03-2016
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Mayor and Council Communications Map
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 3129/2016 - Ordinance No 22133-03-2016
DATE: Tuesday, March 29, 2016 REFERENCE NO.: **G-18703
LOG NAME: 55FWS HANGAR NW1 LOAN
SUBJECT:
Authorize Execution of a Ground Lease Agreement with Mandatory Improvements with FWS Realty, Ltd.,
for 63,299 Square Feet of Ground Space Known as Lease Site NW-1, a Right of First Refusal on 14,127
Square Feet of Ground Space Known as Option D and a Construction Loan Agreement and Advance
Promissory Note in an Amount Up to $900,000.00 at Fort Worth Spinks Airport (COUNCIL DISTRICT 6)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize execution of a Ground Lease Agreement with mandatory improvements with FWS Realty,
Ltd., for 63,299 square feet of ground space known as Lease Site NW-1;
2. Authorize execution of a Right of First Refusal on 14,127 square feet of ground space known as Option
D at Fort Worth Spinks Airport;
3. Authorize execution of a Construction Loan Agreement and Advance Promissory Note in the amount of
$900,000.00 to stimulate and encourage business development on Lease Site NW-1;
4. Authorize use of revenue derived from mineral leases on City-owned airports in the amount of
$900,000.00 for the construction loan to FWS Realty, Ltd; and
5. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the
Aviation Gas Lease Capital Project Fund in the amount of$900,000.00 from available funds.
DISCUSSION:
Staff has received a request from FWS Realty, Ltd., to lease approximately 63,299 square feet of ground
space on the west side of Fort Worth Spinks Airport (Spinks Airport) to construct a 22,500 square foot
hangar.
To aid in the development of the mandatory improvements and as an economic incentive to stimulate and
encourage business development at Spinks Airport on Lease Site NW-1, FWS Realty, Ltd., has been
offered and has accepted a construction loan in an amount up to $900,000.00. As recommended by the
City's 2010 Comprehensive Plan, adopted by the City Council pursuant to Ordinance No. 19044-02-2010
and in accordance with Resolution No. 3716-03-2009, the City has established an economic development
program pursuant to which the City will, on a case-by-case basis, offer economic development incentives
authorized by Chapter 380 of the Texas Local Government Code that include monetary loans and grants
of public money to businesses and entities that the City determines will promote state or local economic
development and stimulate business and commercial activity in the City in return for verifiable employment
commitments and other commitments from such businesses or entities. Spinks Airport is at full occupancy
Logname: 55FWS HANGAR NW1 LOAN Page 1 of 3
with on-airport businesses needing to expand and off-airport businesses wanting to relocate to the
airport. This loan allows FWS Realty, Ltd., and the City to meet this increased demand as the new hangar
will house planes that cannot currently be accommodated at the airport. This development will also assist
Aviation in meeting Federal Grant Assurances.
The loan will be repaid using an amortization schedule of 20 years with payments of principal and interest
made in equal monthly amounts. The loan repayment schedule will begin on the first day of the month
following the date of occupancy of the hangar. Interest on the outstanding principal balance will be
calculated at a rate per annum equal to the interest rate on 10-year United States Treasury Notes. After
10 years, the interest rate will be adjusted to the interest rate on 10-year United States Treasury Notes
then in effect plus one percent. The interest rate was determined based on previous loans provided by
the Aviation Department. This rate is to promote development and long-term income. Upon repayment,
principal and interest payments will be deposited into the Airports Gas Lease Capital Project Fund.
Construction of the 22,500 square foot hangar shall begin within six months following the later of(a)
receipt of written Federal Aviation Administration (FAA) Airspace Study approval on the design of same,
(b) receipt of the City of Fort Worth Aviation Department's approval of plans as set forth in the lease and
(c) issuance of a building permit with the completion and issuance of the Certificate of Occupancy to be no
later than 12 months after construction commences.
The term for the Ground Lease is 40 years starting on the date the lessee is issued a building permit from
the City of Fort Worth. At a ground rate of$0.27 per square foot per year, Lease Site NW-1 will generate
estimated revenue of$17,090.73 per year or$1,424.23 per month.
Rental rates shall be subject to an increase beginning October 1, 2016 and on October 1 of each
subsequent year during the term as required in the Schedule of Rates and Changes adopted by City
Council for the airports. All Agreement terms will be in accordance with established City and Aviation
Department policies.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies upon approval of the above recommendations and adoption of the
attached appropriation ordinances, funds will be available in the current capital budget, as appropriated, of
the Airports Gas Lease Project Fund. The Aviation Department is responsible for the collection and
deposit of funds due to the City.
FUND IDENTIFIERS (FIDs):
TO
Fund Department Account Project Program Activity Budget Reference # Amount
ID ID Year Chartfield 2
5 59302 0550435 4623001 UNSPEC UN9200 $900,000.00
5 59302 055E435 4623001 100270 CAPEXP $900,000.00
FROM
Fund Department Account Project ProgramActivity Budget Reference # Amount
ID ID Year (Chartfield 2)
59302 0550435 4623001 UNSPEC UN9200 $900,000.0
593021 0550435 5740010 100270 XXXXXX $900,000.00
CERTIFICATIONS:
Submitted for City Manager's Office by: Fernando Costa (6122)
Originating Department Head: Bill Welstead (5402)
Logname: 55FWS HANGAR NW1 LOAN Page 2 of 3
Aaron Barth (5434)
Additional Information Contact: Anne-Marie Stowe (5415)
Logname: 55FWS HANGAR NWI LOAN Page 3 of 3