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HomeMy WebLinkAboutContract 30573 (2) L !t NO RENEWAL AGREEMENT TO CITY SECRETARY CONTRACT NO. 10723 FIXED BASE OPERATOR LEASE HANGAR 12-S FORT WORTH MEACHAM INTERNATIONAL AIRPORT This RENEWAL AGREEMENT ("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 and situated in portions of Tarrant and Denton and Wise Counties, Texas, acting by and through Marc Ott, its duly authorized Assistant City Manager, and AERO PLANE SHOP, INC. ("Lessee"), a Texas corporation, acting by and through Clarence J. Sury, its duly authorized President. RECITALS The following statements are true and correct and form the basis of this Agreement: A. On or about October 26, 1979, Lessor and William K. Leech, an individual, entered into City Secretary Contract ("CSC") No. 10723, a lease of unimproved land at Fort Worth Meacham International Airport ("Airport") known as Hangar 12-S Lease Site ("Leased Premises"). B. Pursuant to the Lease, Lessee constructed improvements, including a conventional hangar facility, on the Leased Premises (collectively the "Hangar Facility"). Title to the Hangar Facility vested in Lessor upon the completion of its construction. C. On or about June 22, 1981, CSC No. 10723 was amended by CSC No. 11779 to add additional unimproved land to the Leased Premises to enlarge the Hangar Facility. CSC Nos. 10723 and 11779 shall hereafter collectively be referred to as the"Lease." D. Pursuant to CSC No. 17379, on or about September 12, 1989, Lessor consented to an assignment by William K. Leech to Areo Plan Shop Inc., of all right, title and interest in the Lease. E. The initial term of the Lease expires September 30, 2004. The Lease provides that upon expiration of the initial term, Lessee shall have two (2) consecutive rights of first refusal to lease the Leased Premises for consecutive terms of five (5) years (each a"Renewal Term"). F. Pursuant to CSC No 26725, on or about May 8, 2001, the Lease was amended to provide that during any Renewal Term, rental rates would be set at the unimproved ground rental rate in effect at the time of the renewal. G. Lessee has properly exercised its option to renew the lease for the first of the consecutive five (5) year term. Renewal No. 1 of CSC No. 10723 between - - - City of Fort Worth and Aero Plane Shop,Inc. AGREEMENT 1. The Lease is hereby renewed and extended for a five (5) year term, commencing October 1, 2004 and expiring on September 30, 2009. Upon expiration of the Renewal Term, Lessee shall have one option to renew the Lease for an additional five (5) year term. 2. The rental rate for each Renewal Term shall be .21 cents per square foot, or the current rental rate for unimproved land in effect at the time of the renewal. On October 15` of any given year, the rental rate shall be subject to an increase to reflect the upward percentage change, if any, in the Consumer Price Index for the period since the last adjustment. 3. All other terms and conditions of the Lease shall remain in full force and effect. [Signature Pages Follow] Renewal No. 1 of CSC No. 10723 between City of Fort Worth and Aero Plane Shop,Inc. c " ' EXECUTED IN MULTIPLE ORIGINALS,thisday ofa&mb�A ' , 2004. CI FORT WO AERO PLANE SHOP,---C.: B B Y� Marc Ott Clarence J. Sury Assistant City Manager President ATTEST: ATTEST: By: By: Marty Hendrix City Secretary APPROVED AS TO FORM AND LEGALITY: B Maleshia Farmer Assistant City Attorney M &C:0.-Xa P-S^( Renewal No. 1 of CSC No. 10723 between City of Fort Worth and Aero Plane Shop, Inc. 3 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 Clarence J. Sury, 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 Aero Plane Shop, Inc., and that he executed the same as the act of Aero Plane Shop, Inc., for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN WhD&4 MY AND AND SEAL OF OFFICE this day of , o�O� G ��1/0',� H 20 . .....: .. FLY pug -Q 1% a ,� ''r o� { �r Notary Public in and for the State of Tex 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 Marc Ott, 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 stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this,day of,'5,i 20 D_ . , HETTIF LANE Notary Public in and for the State of Texas MY COMMISSION EXPIREg July 26. 2007 t Renewal No. 1 of CSC No. 10723 between City of Fort Worth and Aero Plane Shop,Inc. 4 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 8/5/2004 DATE: Thursday, August 05, 2004 LOG NAME: 55AEROPLANESHOP REFERENCE NO.: **C-20181 SUBJECT: Five Year Extension of City Contract No.10723 with Aero Plane Shop, Inc. at Fort Worth Meacham International Airport RECOMMENDATION: It is recommended that the City Council authorize the City Manager to execute a five (5) year lease agreement with Aero Plane Shop, Inc. at Fort Worth Meacham International Airport for Hangar 12S. DISCUSSION: City Secretary Contract (CSC) No. 10723 for Hangar 12S has expired and Mr. C.J. Sury, President of Aero Plane Shop, Inc. has requested to execute the first of two five (5) year extensions in accordance with the lease agreement. On April 24, 2001, City Council approved M&C C-18569 authorizing an amendment to rates associated with CSC# 10723. Mr. Sury has made repairs in excess of$45,000 to the City owned hangars. In exchange for the repairs, he was granted an amendment (M&C C-18569) to the leases that stipulated the rental rates during the renewal period would continue at the unimproved ground rental rate in effect at the time of renewal, instead of the standard hangar rate. The lease will provide for a five (5) year term with one five (5) year option to renew. The initial term of the lease will commence upon the date of execution. Rental rate shall be subject to an increase on October 1 st of any given year to reflect the upward percentage change, if any, in the Consumer Price Index for the period since the last adjustment. All agreement terms will be in accordance with City policies. The property is located in COUNCIL DISTRICT 2. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that the Revenue Office of the Finance Department will be responsible for the collection and deposit of funds due to the City under this Agreement. There will not be any additional revenue generated in this fiscal year. TO_Fund/Account/Centers FROM Fund/Account/Centers PE4__0 491352 0551101 $0.00 Submitted for City Manager's Office bv: Originating Department Head: Additional Information Contact: Logname: 55AEROPLANESHOP Pagel of 2