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CITY SECRETARY,
N CONTRACT NO.
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AGREEMENT TERMINATING LEASE
61 C90 3
d FORT WORTH SPINKS AIRPORT
9 S ti £ Z UNIMPROVED GROUND LEASE AGREEMENT
LEASE SITES E20
This AGREEMENT TERMINATING LEASE ("Agreement") 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 FERNANDO COSTA, its duly authorized Assistant City Manager and
NEWONE HANGARS, LLC, a Texas Limited Liability Company (Lessee), acting by
and through John Dubosque, its duly authorized President.
RECITALS
The following introductory provisions are true and correct and form the basis of
this Agreement:
A. Lessor previously entered into a Ground Lease Agreement ("Lease") at Fort
Worth Spinks Airport (the "Airport") known as City Secretary Contract (CSC) No.
35803 on September 19, 2007 with Newone Hangars, LLC (Newone). All defined terms
used in this Agreement that are not otherwise defined herein shall have the meaning as
set forth in the Lease.
B. On January 23, 2015 the City of Fort Worth (City) executed a Consent to
Assignment (CSC 35803-CAI), from Newone to Art Aero, LLC (Art Aero), for Lease
Site E20.
C. On October 2, 2015 the City of Fort Worth terminated the Consent to Assignment
(CSC 35803-CAI), from Newone to Art Aero, for Lease Site E20.
D. Lessor and Lessee have decided to cancel and terminate the Lease and it is the
intention of Lessor and Lessee to effect the cancellation of the Lease by this instrument.
THEREFORE, in consideration of the covenants and agreements contained
below, and of the release and surrender by Lessee of the Lease and all of its rights in it
and all of its rights in and to Premises, of the release by Lessor of all Lessee's obligations
under the Lease, and for other valuable consideration, the receipt and sufficiency of
which are acknowledged here, the parties to this Lease agree as follows:
OFFICIAL RECORD
CITY SECRETARY
Agreement Terminating Lease
Fort Worth Spinks Airport FT.WORTH, TX
Unimproved Ground Lease Agreement—Newone Hangars,LLC
AGREEMENT
1. TERMINATION OF THE LEASE.
The Lease is hereby terminated effective as of December 31, 2016 ("Effective
Date"). Lessee and Lessee's heirs and assigns hereby forever releases, quitclaims, and
surrenders to Lessor the Lease and all rights of Lessee in and to the Premises and the
Ramp Space. Lessee and Lessee's heirs further RELEASE, ACQUIT, AND FOREVER
DISCHARGE Lessor and Lessor's agents, servants, employees and all other persons from
any and all claims, demands, or causes of action of any kind whatsoever against Lessor
which Lessee may have now, known or unknown, existing, directly or indirectly
attributable to the Lease or this Agreement.
2. SURRENDER OF PREMISES.
Within 30 days following the Effective Date, the Premises shall be vacated of all
trade fixtures, tools, machinery, equipment, materials and supplies, furniture, and
personal property ("Tenant Property"). By entering into this Agreement, Lessee hereby
agrees that any Tenant Property remaining after this 30 day period shall become property
of the Lessor, and this Agreement constitutes a bill of sale for same to Landlord.
3. NOTICES TO LESSEE AFTER EFFECTIVE DATE.
All notices to Lessee after the Effective Date shall be addressed as follows:
Newone Hangars, LLC
10608 Gleneagle Place
Louisville, KY 40223
Agreement Terminating Lease
Fort Worth Spinks Airport
Unimproved Ground Lease Agreement—Newone Hangars,LLC Page 2 of 4
IN WITNESS WHEREOF, the parties hereto have executed this Agreement
Terminating Lease in multiples on this the. 1,"7 day of De a r11 bei/ , 2016.
CITY OF FORT WORTH:
By:
Fernando Costa
Assistant City Manager
Date:-
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 Fernando Costa, known to me to be the person
whose name is subscribed to this Agreement Terminating Lease, 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 stated.
GIVE UNDER MY HAND AND SEAL OF OFFICE this �3.-p( day
re )^,-L6e,r , 2016.
TRIKINYA l JOHNSON y
a'=a`
'%%'Notary Public,Stats of Texas
°• Comm.Expires 04-17-2018 Notary Pubric inrad for the
F Notary ID 1238832-0 State of Texas
non•
APPROVED AS TO FORM ATTEST:
AND LEGALITY:
By: CZ - By:
Paige Meb ney J. Kayser
Assistant City Attorney OF FO,Q City Secretary
M&C: C-28043
O
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Date: 12/13/6 ;•�ti
Form 1295: 2016-132379 S
OFFICIAL RECORD
Agreement Terminating Lease CITY SECRETARY
Fort Worth Spinks Airport
Unimproved Ground Lease Agreement—Newone Hangars,LLC FT.WORTH,1Xge of 4
LESSEE: ATTEST:
Newone Hangars, LLC
By: By:
Jack Dubosque,
�.
President
Date:
STATE OF §
COUNTY OF §
BEFORE ME, the undersigned authority, a Notary Public in and for the State of
Texas, on this day personally appeared Jack Dubosque, known to me to be the person
whose name is subscribed to this Agreement Terminating Lease, and acknowledged to
me that the same was the act of Newone Hangars, LLC, and that s/he executed the same
as the act of Newone Hangars, LLC, for the purposes and consideration therein
expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this day
) 2016.
1/1 61m4e-d
Notary Public in and for the
State of
Agreement Terminating Lease
Fort Wortli Spinks Airport
Unimproved Ground Lease Agreement—Newone Hangars,LLC Page 4 of 4
A notary public or other officer completing this certificate verifies only the identity of the individual
who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or
validity of that document.
STATE OF CALIFORNIA }
COUNTY OF NAPA }ss
On t , before me, �" °'`� /► l ,Notary Public,
personally
appeared r who proved
to me on the basis of satisfactory evidencle to be the person(s)whose name(s) is/are subscribed to the
within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized
capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or entity upon behalf
of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
WITNESS my hand and official seal.
K.HANSEN Not ry Public
COMM.#2066593 W
mNOTARY PUBLIC-CALIFORNIA g
SONOMA COUNTY
MY COMM.EXPIRES MAY 2,2018
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 12/13/2016
DATE: Tuesday, December 13, 2016 REFERENCE NO.: **C-28043
LOG NAME: 55FWS TERMNEWONE GRNDHGRLEASEDU MONT
SUBJECT:
Authorize Execution of a Termination Agreement with Newone Hangars, LLC and Execute a New Hangar
and Ground Lease Agreement with Dumont Group, LLC for Lease Site E20 at Fort Worth Spinks Airport
(COUNCIL DISTRICT 6)
RECOMMENDATION:
It is recommended that the City Council authorize execution of a Termination Agreement with Newone
Hangars, LLC and execute a Hangar and Ground Lease Agreement with Dumont Group, LLC for Lease
Site E20 at Fort Worth Spinks Airport.
DISCUSSION:
On August 28, 2007, by Mayor and Council Communication (M&C C-22344), City Council approved City
Secretary Contract (CSC) 35803, an Unimproved Ground Lease Agreement with Newone Hangars, LLC
(Newone), for Lease Site E20 at Fort Worth Spinks Airport. The Lease expires on July 31, 2037.
On January 24, 2012, (M&C C-25415), City Council approved CSC-35803-A1 to amend the Unimproved
Ground Lease Agreement to increase the total square feet from 79,600 to 158,735 total square feet.
On January 23, 2015 the City of Fort Worth (City) executed a Consent to Assignment (CSC 35803-CA1),
from Newone to Art Aero, LLC (Art Aero), for Lease Site E20.
On October 2, 2015 the City of Fort Worth terminated the Consent to Assignment (CSC 35803-CAI), from
Newone to Art Aero, for Lease Site E20.
Dumont Group, LLC (Dumont) approached Newone Hangars, LLC (Newone) to purchase the leasehold
interest of Lease Site E20. Newone has agreed to the purchase and has requested to terminate the
current Unimproved Ground Lease Agreement.
The Lease Site is comprised of 158,735 square feet of ground space and includes a 51,300 square feet
hangar facility. The term of Hangar and Ground Lease is 40 years beginning January 1, 2017 and expiring
December 31, 2056. At the current ground rate of$.27 per square foot per year, Lease Site E20 will
generate estimated revenue of$42,858.45 per year or$3,571.54 per month. At year 32, a hangar rate will
be included with the then current ground rate. The hangar rate will equal the then Fair Market Value, as
determined by the City' s market analysis. In no case shall the hangar rate be less than the value
assessed upon completion of a property appraisal completed by a third party vendor that has been
approved and secured by the City.
Rental rates shall be subject to an increase on October 1st of any given year, based on the upward
percentage change in the Consumer Price Index for the Dallas-Fort Worth Metropolitan area. At no time
will the adjusted rate exceed the rate that is current in the Schedule of Rates and Charges. Five-year rate
Logname: 55FWS TERMNEWONE GRNDHGRLEASEDUMONT Page 1 of 2
adjustments will be applied to the ground rate starting on October 1, 2022 and every fifth year thereafter.
Fort Worth Spinks Airport is located in COUNCIL DISTRICT 6.
FISCAL INFORMATION /CERTIFICATION:
The Director of Finance certifies that the Aviation Department is responsible for the collection and deposit
of funds due to the City. Upon receipt, these funds will be deposited into the Municipal Airports Fund,
Hangar Lease Revenue Account, which has total estimated revenue in Fiscal Year 2017 of$1,126,105.00
and year-to-date receipts of$96,110.47. The Land Lease Revenue Account, which has total estimated
revenue in Fiscal Year 2017 of$1,694,578.00 and year-to-date receipts of$156,765.82.
FUND IDENTIFIERS (FIDs):
TO
Fund Department ccoun Project Program ctivity Budget Reference # moun
ID ID Year Chartfield 2
FROM
Fund Department ccountl Project Program ctivity Budget Reference # mount
ID ID Year Chartfield 2
CERTIFICATIONS:
Submitted for City Manager's Office bv: Fernando Costa (6122)
Originating Department Head: Bill Welstead (5402)
Aaron Barth (5434)
Additional Information Contact: Anne-Marie Stowe (5415)
ATTACHMENTS
1. Form 1295 Dumont Group.pdf (Public)
2. Form 1295 Newone.pdf (Public)
3. MAP 55FWS TERMNEWONE GRNDHGRLEASEDUMONT .pdf (Public)
Logname: 55FWS TERMNEWONE GRNDHGRLEASEDUMONT Page 2 of 2
CERTIFICATE OF INTERESTED PARTIES FORM 1295
1 of 1
Complete Nos.1-4 and 6 if there are interested parties. OFFICE USE ONLY
Complete Nos.1,2,3,5,and 6 if there are no interested parties. CERTIFICATION OF FILING
1 Name of business entity filing form,and the city,state and country of the business entity's place Certificate Number:
of business. 2016-132379
Newone Hangars LLC
Fort Worth ,TX United States Date Filed:
2 Name of governmental entity or state agency that is a party to the contract for which the form is 11/03/2016
being filed.
City of Fort Worth Department of Aviation Date Acknowledged:
3 Provide the identification number used by the governmental entity or state agency to track or identify the contract,and provide a
description of the services,goods,or other property to be provided under the contract.
Lease Site E-20
Termination of Ground Lease Agreement at Fort Worth Spinks Airport
Nature of interest
4 Name of Interested Party City,State,Country(place of business) (check applicable)
Controlling I Intermediary
5 Check only if there is NO Interested Party.
X
6 AFFIDAVIT I swear,or affirm,under penalty of perjury,that the above disclosure is true and correct.
Signatureuthor' ctirrg-�usiness entity
AFFIX NOTARY STAMP!SEAL ABOVE
((4
Sworn to and subscribed before me,by the said l.�J1� this the day ofK10 Yeat ,
20 �t!L to certify which,witness my hand and seal of office.
� �A L Ii
Signature of off ic r. dmin stering oath Printed name of officer ddministering oath Title of off"ministering oath
Forms provided by Texas Ethics Commission www.ethics.state.tx.us Version V1.0.277