HomeMy WebLinkAboutContract 31988 Ci T Y SECRETARY
O NTRACT No. ` 1L I
FORT WORTH MEACHAM AIRPORT
UNIMPROVED GROUND LEASE AGREEMENT
AND ASSOCIATED MANDATORY IMPROVEMENTS
This UNIMPROVED GROUND LEASE AGREEMENT ("Lease") 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 acting by and through Marc Ott, its
duly authorized Assistant City Manager, and REED PIGMAN ("Lessee") as President of Texas
Jet, Inc.
In consideration of the mutual covenants, promises and obligations contained herein, the
parties agree as follows:
1. PROPERTY LEASED.
Lessor hereby demises to Lessee approximately Forty Nine Thousand Two Hundred
Ten 49,210 square feet of unimproved ground space at Fort Worth MEACHAM Airport
("Airport") in Fort Worth, Tarrant County, Texas, identified as Lease Sites 32N, and 33N
("Premises"), as shown in Exhibit "A," attached hereto and hereby made a part of this
Lease for all purposes.
2. TERM OF LEASE.
2.1. Initial Term.
The Initial Term of this Lease shall cornmence on the date of its execution
("Effective Date") and expire at 11:59 pm on October 1, 2035, unless terminated earlier as
provided herein.
2.2 Renewals.
If Lessee performs and abides by all provisions and conditions of this Lease, upon
expiration of the Initial Term of this Lease, Lessee shall have two (2) consecutive options to
renew this Lease for two (2) additional successive terms of five (5) years each (each a
"Renewal Term") at a rental rate calculated in accordance with Section 3.1 of this Lease
and on terms and conditions that may be prescribed by Lessor at the time. Lessee shall
notify Lessor in writing of its intent to exercise a respective option not less than ninety (90)
nor more than one hundred eighty (180) days prior to the expiration of the term then in
effect. If Lessee does not exercise its option for a first Renewal Term within the time frame
provided herein, Lessee shall automatically and simultaneously forfeit its second option to
lease the Premises for a second Renewal Term, and Lessee shall no ldnger have.�any rights
or interest in the Premises following the expiration of the Initial Term.
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2.3. Holdover.
If Lessee holds over after the expiration of the Initial Term or any Renewal Term,
this action will create a month-to-month tenancy. In this event, for and during the holdover
period, Lessee agrees to pay all applicable rentals, fees and charges at the rates provided by
Lessor's Schedule of Rates and Charges or similarly published schedule in effect at the time.
3. RENT.
3.1. Rates and Adjustments.
Lessee shall commence the payment of rent, in accordance with this Section 3, on
the date that the first certificate of occupancy is issued for a hangar structure erected
pursuant to Section 4.1 of this Lease("Occupancy Date"). From the Occupancy Date until
(date) September 30, 2005, Lessee shall pay Lessor rent in the amount of$10,334.10 which
is based on a rental rate$0.21 per square foot on an annual basis, and which will be payable
in monthly installments of$861.18. On October 1, 2005, and on October lst of each year
thereafter during both the Initial Term and any Renewal Term, Lessee's rental rate shall be
subject to increase by Lessor to reflect the upward percentage change, if any, in the
Consumer Price Index for the Dallas/Fort Worth Metropolitan Area, as announced by the
United States Department of Labor or successor agency (i), for the first increase, since the
Effective Date of this Lease and (ii) for each subsequent increase, since the effective date of
the last increase; provided, however, that Lessee's rental rates shall not (i) be increased in
any given year by more than ten percent(10%) over the rental rate paid by Lessee during the
immediately preceding twelve (12) months or (ii) exceed the then-current rates prescribed
by Lessor's published Schedule of Rates and Charges for the type or types of property at the
Airport similar to the type or types of property that comprise the Premises. If the
Occupancy Date occurs on or after October 1, 2005,Lessee's initial payment of rent shall be
calculated in the same manner as it would have if the Occupancy Date and Lessee's initial
payment of rent had occurred prior to October 1, 2005.
3.2. Payment Dates and Late Fees.
Monthly rent payments are due on or before the first (1st) day of each month.
Payments must be received during normal working hours by the due date at the location for
Lessor's Revenue Office set forth in Section 15. Rent shall be considered past due if Lessor
has not received full payment after the tenth (10th) day of the month for which payment is
due. Without limiting Lessor's termination rights as provided by this Lease, Lessor will
assess a late penalty charge of ten percent (10%) per month on the entire balance of any
overdue rent that Lessee may accrue.
3.3 Five-Year Adiustments.
In addition to the rental rate adjustments set forth in Section 4.3 of this Lease, on October 1,
2005, and every five (5) years thereafter, the various rental rates payable by Lessee pursuant
to Sections 4.1 and 4.2 shall automatically be adjusted to equal the then-current rates for the
same types of property as prescribed by Lessor's Schedule of Rates and Charges or similarly
published schedule in effect at the time.
4. CONSTRUCTION AND IMPROVEMENTS.
4.1. Mandatory Improvements.
Lessee covenants and agrees that it shall improve the Premises, or cause the
Premises to be improved in accordance with the time frames, milestones, specifications and
other conditions of Exhibit "B," attached hereto and made a part of this Agreement for all
purposes. Such improvements shall hereinafter be referred to as "Mandatory
Improvements". Lessee shall diligently commence construction of such Mandatory
Improvements within six (6) months following the Effective Date of this Lease. Lessee
shall fully comply with all provisions of this Section 4 in the performance of any such
Mandatory Improvements. In the event that Lessor and Lessee agree to deviate from the
terms, provisions, specifications or conditions of Exhibit "B" in any way, a revised Exhibit
"B" signed and dated by both Lessor and Lessee shall be attached to and made a part of this
Agreement and shall supersede the previous Exhibit "B". Upon completion of the
Mandatory Improvements or earlier termination of this Lease, Lessor shall take full title to
any Mandatory Improvements on the Premises.
4.2. Discretionary Improvements.
In addition to the Mandatory Improvements, Lessee may, at its sole discretion,
perform modifications, renovations, improvements or other construction work on the
Premises. Any modifications, renovations, improvements or other construction work on the
Premises that do not constitute the Mandatory Improvements shall be referred to hereafter
as "Discretionary Improvements". Lessee may not initiate any Discretionary
Improvement on or to the Premises unless it first submits all plans, specifications and
estimates for the costs of the proposed work in writing and also requests and receives in
writing approval from the Director of Airport Systems or authorized representative
("Director"). Lessee covenants and agrees that it shall fully comply with all provisions of
this Section 4 in the performance of any such Discretionary Improvements. Upon
completion of any such Discretionary Improvements or earlier termination of this Lease,
Lessor shall take full title to any Discretionary Improvements on the Premises.
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4.3. Process for Approval of Plans.
Lessee's plans for construction and improvements shall conform to the Airport's
architectural standards and must also receive written approval from the City's Departments
of Development, Engineering and Transportation and Public Works. All plans,
specifications and work shall conform to all federal, state and local laws, ordinances, rules
and regulations in force at the time that the plans are presented for review.
4.4. Documents.
Lessee shall supply the Director with comprehensive sets of documentation relative
to the Mandatory Improvements and any Discretionary Improvements, including, at a
minimum, as-built drawings of each project. As-built drawings shall be new drawings or
redline changes to drawings previously provided to the Director. Lessee shall supply the
textual documentation in computer format as requested by Lessor.
4.5. Bonds Required of Lessee.
Prior to the commencement of the Mandatory Improvements or any Discretionary
Improvements, Lessee shall deliver to Lessor a bond, executed by a corporate surety in
accordance with Texas Government Code, Chapter 2253, as amended, in the full amount of
each construction contract or project. The bonds shall guarantee (i) satisfactory compliance
by Lessee with all requirements, terms and conditions of this Lease, including, but not
limited to, the satisfactory completion of the respective modifications, renovations,
construction projects or improvements, and (ii) full payments to all persons, firms,
corporations or other entities with whom Lessee has a direct relationship for the
performance of such modifications, renovations, construction projects or improvements.
In lieu of the required bond, Lessee may provide Lessor with a cash deposit or an
assignment of a certificate of deposit in an amount equal to 125% of the full amount of each
construction contract or project. If Lessee makes a cash deposit, Lessee shall not be entitled
to any interest earned thereon. Certificates of deposit shall be from a financial institution in
the Dallas-Fort Worth Metropolitan Area which is insured by the Federal Deposit Insurance
Corporation and acceptable to Lessor. The interest earned on the certificate of deposit shall
be the property of Lessee and Lessor shall have no rights in such interest. If Lessee fails to
complete the respective modifications, renovations, construction projects or improvements,
or if claims are filed by thud parties on grounds relating to such modifications, renovations,
construction projects or improvements, Lessor shall be entitled to draw down the full
amount of Lessee's cash deposit or certificate of deposit.
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4.6. Bonds Required of Lessee's Contractors.
Prior to the commencement of any modification, renovation, improvement or new
construction, Lessee's respective contractor shall execute and deliver to Lessee surety
performance and payment bonds in accordance with the Texas Government Code, Chapter
2253, as amended, to cover the costs of all work performed under such contractor's contract
for such modifications, renovations, improvements or new construction. Lessee shall
provide Lessor with copies of such bonds prior to the commencement of such
modifications, renovations, improvements or new construction. The bonds shall guarantee
(i) the faithful performance and completion of all construction work in accordance with the
final plans and specifications as approved by the City and (ii) full payment for all wages for
labor and services and of all bills for materials, supplies and equipment used in the
performance of the construction contract. Such bonds shall name to both Lessor and Lessee
as dual obligees. If Lessee serves as its own contractor, Section 4.5 shall apply.
4.7. Releases by Lessor Upon Completion of Construction Work.
Lessor will allow Lessee a dollar-for-dollar reimbursement from its cash deposit
account or reduction of its claim upon Lessor's certificate of deposit upon (i), where Lessee
serves as its own contractor, verification that Lessee has completed construction work or
(ii), where Lessee uses a contractor, receipt of the contractor's invoice and verification that
the contractor has completed its work and released Lessee to the extent of Lessee's payment
for such work, including bills paid, affidavits and waivers of liens.
5. USE OF PREMISES.
Lessee hereby agrees to use the Premises solely for aviation-related purposes only
and strictly in accordance with the terms and conditions of this Lease. Lessee shall have the
right to sublease portions of the Premises, including individual hangars constructed
pursuant to the Mandatory Improvements, to various third parties ("Sublessees") under
terms and conditions acceptable to and determined by Lessee. All written agreements
executed by Lessee to Sublessees for any portion of the Premises shall contain terms and
conditions that (i) do not conflict with Lessee's duties and obligations under this Lease; (ii)
incorporate the terms and provisions of this Lease; (iii) restrict the use of the Premises to
aircraft storage or other aviation or aviation-related purposes acceptable to Lessor; and (iv)
treat users of the same or substantially similar facilities in a fair and non-discriminatory
manner. Lessee may make non-material modifications to its standard lease to the extent
that such are not contrary to Lessor's Sponsor's Assurances.
6. REPORTS,AUDITS AND RECORDKEEPING.
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Lessee shall keep and maintain books and records pertaining to Lessee's operations
at the Airport and other obligations hereunder in a manner satisfactory to Lessor's Internal
Auditor and at a location within the City of Fort Worth. Upon Lessor's request and
following reasonable advance notice, Lessee will make such books and records available for
review by Lessor during Lessee's normal business hours. Lessor, at Lessor's sole cost and
expense, shall have the right to audit such books and records in order to ensure compliance
with the terms of this Lease and the Sponsor's Assurances made by Lessor to the Federal
Aviation Administration.
7. UTILITIES.
Lessee, at Lessee's sole cost and expense, shall be responsible for the installation
and use of all utilities services to all portions of the Premises and for all other related
utilities expenses, including, but not limited to, deposits and expenses required for the
installation of meters. Lessee further covenants and agrees to pay all costs and expenses for
any extension, maintenance or repair of any and all utilities serving the Premises. In
addition, Lessee agrees that all utilities, air conditioning and heating equipment and other
electrically-operated equipment which may be used on the Premises shall fully comply with
Lessor's Mechanical, Electrical, Plumbing, Building and Fire Codes ("Codes"), as they
exist or may hereafter be amended.
8. MAINTENANCE AND REPAIRS.
8.1. Maintenance and Repairs by Lessee.
Lessee agrees to keep and maintain the Premises in a good, clean and sanitary
condition at all times. Lessee covenants and agrees that it will not make or suffer any waste
of the Premises. Lessee, at Lessee's sole cost and expense, will make all repairs necessary
to prevent the deterioration in condition or value of the Premises and any improvements
thereon, including,but not limited to, doors, windows and roofs for such improvements, and
all fixtures, equipment, modifications and pavement on the Premises. Lessee shall be
responsible for all damages caused by Lessee, its agents, servants, employees, contractors,
subcontractors, licensees or invitees, and Lessee agrees to fully repair or otherwise cure all
such damages at Lessee's sole cost and expense.
Lessee agrees that all improvements, trade fixtures, furnishings, equipment and
other personal property of every kind or description which may at any time be on the
Premises shall be at Lessee' sole risk or at the sole risk of those claiming under Lessee.
Lessor shall not be liable for any damage to such property or loss suffered by Lessee's
business or business operations which may be caused by the bursting, overflowing or
leaking of sewer or steam pipes, from water from any source whatsoever, or from any
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heating fixtures, plumbing fixtures,electric wires, noise, gas or odors, or from causes of any
other matter.
8.2. Compliance with ADA.
Lessee, at its sole cost and expense, agrees to keep and maintain the Premises in full
compliance at all times with the Americans with Disabilities Act of 1990, as amended
("ADA"). In addition, Lessee agrees that all improvements it makes at the Airport shall
comply with all ADA requirements.
8.3. Inspections.
8.3.1. Lessor shall have the right and privilege, through its officers, agents,
servants or employees, to inspect the Premises. Except in the event of an
emergency, Lessor shall conduct such inspections during Lessee's ordinary business
hours and shall use its best efforts to provide Lessee at least two (2) hours' notice
prior to any inspection.
8.3.2. If Lessor determines during an inspection of the Premises that Lessee is
responsible under this Lease for any maintenance or repairs, Lessor shall notify
Lessee in writing. Lessee agrees to begin such maintenance or repair work
diligently within thirty (30) calendar days following -receipt of such notice and to
then complete such maintenance or repair work within a reasonable time,
considering the nature of the work to be done. If Lessee fails to begin the
recommended maintenance or repairs within such time or fails to complete the
maintenance or repairs within a reasonable time, Lessor may, in its discretion,
perform such maintenance or repairs on behalf of Lessee. In this event, Lessee will
reimburse Lessor for the cost of the maintenance or repairs, and such reimbursement
will be due on the date of Lessee's next monthly rent payment following completion
of the maintenance or repairs.
8.3.3. During any inspection, Lessor may perform any obligations that Lessor is
authorized or required to perform under the terms of this Lease or pursuant to its
governmental duties under federal state or local laws,rules or regulations.
8.3.4. Lessee will permit the City's Fire Marshal or his or her authorized agents to
inspect the Premises and Lessee will comply with all requirements of the Fire
Marshal or his or her authorized agents that are necessary to bring the Premises into
compliance with the City of Fort Worth Fire Code and Building Code provisions
regarding fire safety, as such provisions exist or may hereafter be amended. Lessee
shall maintain in proper condition accessible fire extinguishers of a number and type
approved by the Fire Marshal or his or her authorized agents for the particular
hazard involved.
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8.4. Environmental Remediation.
To the best of Lessor's knowledge, the Premises comply with all applicable federal,
state and local environmental regulations or standards. Lessee agrees that it has inspected
the Premises and is fully advised of its own rights without reliance upon any representation
made by Lessor concerning the environmental condition of the Premises. LESSEE, AT
ITS SOLE COST AND EXPENSE, AGREES THAT IT SHALL BE FULLY
RESPONSIBLE FOR THE REMEDIATION OF ANY VIOLATION OF ANY
APPLICABLE FEDERAL, STATE OR LOCAL ENVIRONMENTAL REGULATIONS
OR STANDARDS THAT IS CAUSED BY LESSEE, ITS OFFICERS, AGENTS,
SERVANTS, EMPLOYEES, CONTRACTORS, SUBCONTRACTORS OR INVITEES.
9. SIGNS .
Lessee may, at its sole expense and with the prior written approval of the Director,
install and maintain signs on the Premises related to Lessee's business operations. Such
signs, however, must be in keeping with the size, color, location and manner of display of
other signs at the Airport. Lessee shall maintain all signs in a safe, neat, sightly and
physically good condition.
10. RIGHTS AND RESERVATIONS OF LESSOR.
Lessor hereby retains the following rights and reservations:
10.1.
Lessor reserves the right to take any action it considers necessary to protect the
aerial approaches of the Airport against obstruction, including, but not limited to, the right
to prevent Lessee from erecting or permitting to be erected any building or other structure
which, in the opinion of Lessor, would limit the usefulness of the Airport, constitute a
hazard to aircraft or diminish the capability of existing or future avigational or navigational
aids used at the Airport.
10.2.
Lessor reserves the right to develop and improve the Airport as it sees fit, regardless
of the desires or view of Lessee, and without interference or hindrance by or on behalf of
Lessee. Accordingly, nothing contained in this Lease shall be construed to obligate Lessor
to relocate Lessee as a result of any such Airport developments or improvements.
10.3.
This Lease shall be subordinate to the provisions of any existing or future agreement
between Lessor and the United States Government, which relates to the operation or
maintenance of the Airport and is required as a condition for the expenditure of federal
funds for the development, maintenance or repair of Airport infrastructure. In the event that
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any such existing or future agreement directly causes a material restriction, impairment or
interference with Lessee's primary operations on the Premises ("Limitation") for a period
of less than seven (7) calendar days, this Lease shall continue in full force and effect. If the
Limitation lasts more than seven (7) calendar days, Lessee and Lessor shall negotiate in
good faith to resolve or mitigate the effect of the Limitation. If Lessee and Lessor are in
good faith unable to resolve or mitigate the effect of the Limitation, and the Limitation lasts
between seven (7) and one hundred eighty (180) days, then for such period (i) Lessee may
suspend the payment of any rent due hereunder, but only if Lessee first provides adequate
proof to Lessor that the Limitation has directly caused Lessee a material loss in revenue; (ii)
subject to ordinary wear and tear, Lessor shall maintain and preserve the Premises and its
improvements in the same condition as they existed on the date such Limitation
commenced; and (iii) the term of this Lease shall be extended, at Lessee's option, for a
period equal to the duration of such Limitation. If the Limitation lasts more than one
hundred eighty (180) days, then (i) Lessor and Lessee may, but shall not be required to, (a)
further adjust the payment of rent and other fees or charges, (b) renegotiate maintenance
responsibilities and (c) extend the term of this Lease, or(ii)Lessee may terminate this Lease
upon thirty(30) days'written notice to Lessor.
10.4.
During any war or national emergency, Lessor shall have the right to lease any part
of the Airport, including its landing area, to the United States Government. In this event,
any provisions of this instrument which are inconsistent with the provisions of the lease to
the Government shall be suspended. Lessor shall not be liable for any loss or damages
alleged by Lessee as a result of this action. However, nothing in this Lease shall prevent
Lessee from pursuing any rights it may have for reimbursement from the United States
Government. If any lease between Lessor and the United States Government executed
pursuant to this Section 10.4 directly causes a Limitation for a period of less than seven (7)
calendar days, this Lease shall continue in full force and effect. If the Limitation lasts more
than seven (7) calendar days, Lessee and Lessor shall negotiate in good faith to resolve or
mitigate the effect of the Limitation. If Lessee and Lessor are in good faith unable to
resolve or mitigate the effect of the Limitation, and the Limitation lasts between seven (7)
and one hundred eighty (180) days, then for such period (i) Lessee may suspend the
payment of any rent due hereunder, but only if Lessee first provides adequate proof to
Lessor that the Limitation has directly caused Lessee a material loss in revenue; (ii) subject
to ordinary wear and tear, Lessor shall maintain and preserve the Premises and its
improvements in the same condition as they existed on the date such Limitation
commenced; and (iii) the term of this Lease shall be extended, at Lessee's option, for a
period equal to the duration of such Limitation. If the Limitation lasts more than one
hundred eighty (180) days, then (i) Lessor and Lessee may, but shall not be required to, (a)
further adjust the payment of rent and other fees or charges, (b) renegotiate maintenance
responsibilities and (c) extend the term of this Lease, or(ii)Lessee may terminate this Lease
upon thirty(30) days'written notice to Lessor.
10.5.
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Lessor covenants and agrees that during the term of this Lease it will operate and
maintain the Airport and its facilities as a public airport consistent with and pursuant to the
Sponsor's Assurances given by Lessor to the United States Government through the Federal
Airport Act; and Lessee agrees that this Lease and Lessee's rights and privileges hereunder
shall be subordinate to the Sponsor's Assurances.
10.6.
Lessee's rights hereunder shall be subject to all existing and future utility and
drainage easements and rights-of-way granted by Lessor for the installation, maintenance,
inspection, repair or removal of facilities owned or operated by electric, gas, water, sewer,
communication or other utility companies. Lessee's rights shall additionally be subject to all
rights granted by any ordinance or statute which allows utility companies to use publicly-
owned property for the provision of utility services.
11. INSURANCE.
11.1. Types of Coverage and Limits.
Lessee shall procure and maintain at all times, in full force and effect, a policy or
policies of insurance as specified in this Section 11, naming the City of Fort Worth as an
additional insured and covering all risks related to the leasing, use, occupancy, maintenance,
existence or location of the Premises. Lessee shall obtain the following insurance coverage
at the limits specified herein:
• Property:
Fire and Extended Coverage on all improvements at full replacement cost limit; and
• Commercial General Liability:
$1,000,000 per occurrence,
including products and completed operations; and
• Automobile Liability:
$1,000,000 per accident, including, but not limited to, coverage on any automobile used
in Lessee's operations on the Premises.
In addition, Lessee shall be responsible for all insurance to construction, improvements,
modifications or renovations to the Premises and for personal property of its own or in its
care, custody or control.
11.2. Adjustments to Required Coverage and Limits.
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Insurance requirements, including additional types of coverage and increased limits
on existing coverages, are subject to change at Lessor's option and as necessary to cover
Lessee's and any Sublessees' operations at the Airport. Lessee will accordingly comply with
such new requirements within thirty(30) days following notice to Lessee.
11.3. Certificates.
As a condition precedent to the effectiveness of this Lease, Lessee shall furnish
Lessor with appropriate certificates of insurance signed by the respective insurance
companies as proof that it has obtained the types and amounts of insurance coverage
required herein. Lessee hereby covenants and agrees that not less than thirty(30) days prior
to the expiration of any insurance policy required hereunder, it shall provide Lessor with a
new or renewal certificate of insurance. In addition, Lessee shall, at Lessor's request,
provide Lessor with evidence that it has maintained such coverage in full force and effect.
11.4. Additional Requirements.
Lessee shall maintain its insurance with underwriters authorized to do business in
the State of Texas and which are satisfactory to Lessor. The policy or policies of insurance
shall be endorsed to cover all of Lessee's operations at the Airport and to provide that no
material changes in coverage, including, but not limited to, cancellation, termination, non-
renewal or amendment, shall be made without thirty (30) days' prior written notice to
Lessor.
12. INDEPENDENT CONTRACTOR.
It is expressly understood and agreed that Lessee shall operate as an independent
contractor as to all rights and privileges granted herein, and not as an agent, representative
or employee of Lessor. Lessee shall have the exclusive right to control the details of its
operations and activities on the Premises and shall be solely responsible for the acts and
omissions of its officers, agents, servants, employees, contractors, subcontractors, patrons,
licensees and invitees. Lessee acknowledges that the doctrine of respondeat superior shall
not apply as between Lessor and Lessee, its officers, agents, employees, contractors and
subcontractors. Lessee further agrees that nothing herein shall be construed as the creation
of a partnership or joint enterprise between Lessor and Lessee.
13. INDEMNIFICATION.
LESSEE HEREBY ASSUMES ALL LIABILITY AND RESPONSIBILITY FOR
PROPERTY LOSS, PROPERTY DAMAGE AND/OR PERSONAL INJURY OF ANY KIND,
INCLUDING DEATH, TO ANY AND ALL PERSONS, OF ANY KIND OR CHARACTER,
WHETHER REAL OR ASSERTED, ARISING OUT OF OR IN CONNECTION WITH ITS
USE OF OR OPERATIONS ON THE AIRPORT UNDER THIS LEASE OR WITH THE
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LEASING, MAINTENANCE, USE, OCCUPANCY, EXISTENCE OR LOCATION OF THE
PREMISES OR ANY IMPROVEMENTS THEREON, EXCEPT TO THE EXTENT CAUSED
BY THE GROSS NEGLIGENCE OR INTENTIONAL MISCONDUCT OF LESSOR, ITS
OFFICERS,AGENTS, SERVANTS OR EMPLOYEES.
LESSEE COVENANTS AND AGREES TO, AND DOES HEREBY, INDEMNIFY,
HOLD HARMLESS AND DEFEND LESSOR, ITS OFFICERS, AGENTS, SERVANTS AND
EMPLOYEES, FROM AND AGAINST ANY AND ALL CLAIMS OR LAWSUITS FOR
EITHER PROPERTY DAMAGE OR LOSS (INCLUDING ALLEGED DAMAGE OR LOSS
TO LESSEE'S BUSINESS AND ANY RESULTING LOST PROFITS) AND/OR PERSONAL
INJURY, INCLUDING DEATH, TO ANY AND ALL PERSONS, OF ANY KIND OR
CHARACTER, WHETHER REAL OR ASSERTED, ARISING OUT OF OR IN
CONNECTION WITH THE USE, LEASING, MAINTENANCE, OCCUPANCY, EXISTENCE
OR LOCATION OF THE PREMISES OR ANY IMPROVEMENTS THEREON, EXCEPT TO
THE EXTENT CAUSED BY THE GROSS NEGLIGENCE OR INTENTIONAL
MISCONDUCT OF LESSOR, ITS OFFICERS AGENTS, SERVANTS OR EMPLOYEES.
LESSEE ASSUMES ALL RESPONSIBILITY AND AGREES TO PAY LESSOR FOR
ANY AND ALL INJURIES OR DAMAGES TO AIRPORT PROPERTY, THE PREMISES OR
ANY IMPROVEMENTS THEREON WHICH ARISE OUT OF OR IN CONNECTION WITH
ANY AND ALL ACTS OR OMISSIONS OF LESSEE, ITS OFFICERS, AGENTS,
EMPLOYEES, CONTRACTORS, SUBCONTRACTORS, LICENSEES OR INVITEES,
EXCEPT TO THE EXTENT CAUSED BY THE GROSS NEGLIGENCE OR INTENTIONAL
MISCONDUCT OF LESSOR, ITS OFFICERS,AGENTS, SERVANTS OR EMPLOYEES.
LESSOR DOES NOT GUARANTEE POLICE PROTECTION TO LESSEE, ANY
SUBLESSEES OR THEIR PROPERTY. LESSOR IS OBLIGATED ONLY TO PROVIDE
SECURITY ADEQUATE TO MAINTAIN LESSOR'S CERTIFICATION UNDER FAA
REGULATIONS. LESSEE SHALL COMPLY WITH ALL APPLICABLE REGULATIONS
OF THE FAA RELATING TO AIRPORT SECURITY. LESSEE SHALL PAY ALL FINES
IMPOSED BY THE FAA ON LESSOR OR LESSEE RESULTING FROM LESSEE'S OR
ANY SUBLESSEES' FAILURE TO COMPLY WITH SUCH FAA REGULATIONS OR TO
PREVENT UNAUTHORIZED PERSONS OR PARTIES FROM THEIR OBTAINING
ACCESS TO THE AIR OPERATIONS AREA OF THE AIRPORT FROM THE PREMISES.
14. TERMINATION.
In addition to termination rights contained elsewhere in this Lease,Lessor shall have
the right to terminate this Lease as follows:
14.1. Failure by Lessee to Pay Rent,Fees or Other Charges.
If Lessee fails to pay any rent, fees or other charges due under this Lease, Lessor
shall deliver to Lessee a written invoice and notice to pay the invoice within ten (10)
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calendar days. If Lessee fails to pay the balance outstanding within such time, Lessor shall
have the right to terminate this Lease immediately.
14.2. Breach or Default by Lessee.
If Lessee commits any breach or default, other than Lessee's failure to pay rent,
Lessor shall deliver written notice to Lessee specifying the nature of such breach or default.
Lessee shall have thirty (30) calendar days following such written notice to cure, adjust or
correct the problem to the standard existing prior to the breach. If Lessee fails to cure the
breach or default within such time period,Lessor shall have the right to terminate this Lease
immediately.
14.3. Abandonment or Non-Use of the Premises.
Lessee's abandonment or non-use of the Premises for any reason for more than thirty
(30) consecutive calendar days shall constitute grounds for immediate termination of this
Lease by Lessor.
14.4. Lessee's Financial Obligations to Lessor upon Termination,Breach or Default.
If Lessor terminates this Lease for any non-payment of rent, fees or other charges or
for any other breach or default as provided in Sections 14.1, 14.2 or 14.3 of this Lease,
Lessee shall be liable for and shall pay to Lessor all rent due Lessor for the remainder of the
term then in effect as well as all arrearages of rentals, fees and charges payable hereunder.
In no event shall a reentry onto or reletting of the Premises by Lessor be construed as an
election by Lessor to forfeit any of its rights under this Lease.
14.5. Rights of Lessor Upon Termination or Expiration.
Upon termination or expiration of this Lease, title to all improvements on the
Premises, including the Mandatory Improvements and any Discretionary Improvements,
and all fixtures and other items attached to any structure on the Premises shall pass to
Lessor. In addition, all rights, powers and privileges granted to Lessee hereunder shall
cease and Lessee shall vacate the Premises. Within twenty(20) days following the effective
date of termination or expiration, Lessee shall remove from the Premises all trade fixtures,
tools, machinery, equipment, materials and supplies placed on the Premises by Lessee
pursuant to this Lease. After such time,Lessor shall have the right to take full possession of
the Premises, by force if necessary, and to remove any and all parties and property
remaining on any part of the Premises. Lessee agrees that it will assert no claim of any kind
against Lessor, its agents, servants, employees or representatives, which may stem from
Lessor's termination of this Lease or any act incident to Lessor's assertion of its right to
terminate or Lessor's exercise of any rights granted hereunder.
13
15. NOTICES.
Notices required pursuant to the provisions of this Lease shall be conclusively
determined to have been delivered when (i) hand-delivered to the other party, its agents,
employees, servants or representatives, or (ii) deposited in the United States Mail, postage
prepaid, addressed as follows:
To LESSOR:
For Rent: For All Other Matters:
City of Fort Worth Aviation Department
Revenue Office Meacham International Airport
1000 Throckmorton Street 4201 North Main Street, Suite 200
Fort Worth, Texas 76101-0976 Fort Worth, Texas 76106-2749
To LESSEE:
Reed Pigman
200 Texas Way
Fort Worth, TX 76106
16. ASSIGNMENT AND SUBLETTING.
16.1. In General.
Lessee shall have the right to sublease portions of the Premises as provided
by and in accordance with Section 5 of this Lease. Otherwise, Lessee shall not
assign, sell, convey, sublease or transfer the entirety of its rights, privileges, duties or
interests granted by this Lease without the advance written consent of Lessor.
16.2. Conditions of Approved Assignments.
If Lessor consents to any assignment, all terms, covenants and agreements set forth
in this Lease shall apply to the assignee, and such assignee shall be bound by the terms and
conditions of this Lease the same as if it had originally executed this Lease. The failure or
refusal of Lessor to approve a requested assignment shall not relieve Lessee of its
obligations hereunder, including payment of rentals, fees and charges.
14
17. LIENS BY LESSEE.
Lessee acknowledges that it has no authority to engage in any act or to make any
contract, which may create or be the foundation for any lien upon the property or interest in
the property of Lessor. If any such purported lien is created or filed, Lessee, at its sole cost
and expense, shall liquidate and discharge the same within thirty (30) days of such creation
or filing. Lessee's failure to discharge any such purported lien shall constitute a breach of
this Lease and Lessor may terminate this Lease upon thirty (30) days' written notice.
However, Lessee's financial obligation to Lessor to liquidate and discharge such lien shall
continue in effect following termination of this Lease and until such a time as the lien is
discharged.
18. TAXES AND ASSESSMENTS.
Lessee agrees to pay any and all federal, state or local taxes, or assessments which
may lawfully be levied against Lessee due to Lessee's use or occupancy of the Premises or
any improvements or property placed on the Premises by Lessee as a result of its occupancy.
19. COMPLIANCE WITH LAWS, ORDINANCES,RULES AND REGULATIONS.
Lessee covenants and agrees that it shall not engage in any unlawful use of the
Premises. Lessee further agrees that it shall not permit its officers, agents, servants,
employees, contractors, subcontractors, patrons, licensees or invitees to engage in any
unlawful use of the Premises and Lessee immediately shall remove from the Premises any
person engaging in such unlawful activities. Unlawful use of the Premises by Lessee itself
shall constitute an immediate breach of this Lease.
Lessee agrees to comply with all federal, state and local laws; all ordinances, rules
and regulations of Lessor; all rules and regulations established by the Director; and all rules
and regulations adopted by the City Council pertaining to the conduct required at airports
owned and operated by the City, including the Minimum Standards for Fixed Base
Operators and Other Airport Tenants, a public document dated June 16, 1992, on file in
Lessor's City Secretary's Office and incorporated herein as part of this Lease for all
purposes, as such laws, ordinances, rules and regulations exist or may hereafter be amended
or adopted. If Lessor notifies Lessee or any of its officers, agents, employees, contractors,
subcontractors, licensees or invitees of any violation of such laws, ordinances, rules or
regulations, Lessee shall immediately desist from and correct the violation.
15
20. NON-DISCRINUNATION COVENANT.
Lessee, for itself, its personal representatives, successors in interest and assigns, as
part of the consideration herein, agrees as a covenant running with the land that no person
shall be excluded from participation in or denied the benefits of Lessee's use of the Premises
on the basis of race, color, national origin, religion, handicap, sex, sexual orientation or
familial status. Lessee further agrees for itself, its personal representatives, successors in
interest and assigns that no person shall be excluded from the provision of any services on
or in the construction of any improvements or alterations to the Premises on grounds of
race, color, national origin,religion,handicap, sex, sexual orientation or familial status.
Lessee agrees to furnish its accommodations and to price its goods and services on a
fair and equal basis to all persons. In addition,Lessee covenants and agrees that it will at all
times comply with any requirements imposed by or pursuant to Title 49 of the Code of
Federal Regulations, Part 21, Non-Discrimination in Federally Assisted Programs of the
Department of Transportation and with any amendments to this regulation which may
hereafter be enacted.
If any claim arises from an alleged violation of this non-discrimination covenant by
Lessee, its personal representatives, successors in interest or assigns, Lessee agrees to
indemnify Lessor and hold Lessor harmless.
21. LICENSES AND PERMITS.
Lessee shall, at its sole expense, obtain and keep in effect all licenses and permits
necessary for the operation of its operations at the Airport.
22. GOVERNMENTAL POWERS.
It is understood and agreed that by execution of this Lease, Lessor does not waive or
surrender any of its governmental powers.
23. NO WAIVER.
The failure of Lessor to insist upon the performance of any term or provision of this
Lease or to exercise any right granted herein shall not constitute a waiver of Lessor's right to
insist upon appropriate performance or to assert any such right on any future occasion.
24. VENUE AND JURISDICTION.
If any action, whether real or asserted, at law or in equity, arises on the basis of any
provision of this Lease or of Lessee's operations on the Premises, venue for such action
16
i
shall lie in state courts located in Tarrant County, Texas or the United States District Court
for the Northern District of Texas, Fort Worth Division. This Lease shall be construed in
accordance with the laws of the State of Texas.
25. ATTORNEYS' FEES.
In the event there should be a breach or default under any provision of this Lease
and either party should retain attorneys or incur other expenses for the collection of rent,
fees or charges, or the enforcement of performance or observances of any covenant,
obligation or agreement, Lessor and Lessee agree that the prevailing party shall be entitled
to recover reasonable attorneys'fees and other reasonable expenses from the other party.
26. SEVERABILITY.
If any provision of this Lease shall be held to be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in any way be
affected or impaired.
27. FORCE MAJEURE.
Lessor and Lessee shall exercise every reasonable effort to meet their respective
obligations as set forth in this Lease, but shall not be held liable for any delay in or omission
of performance due to force majeure or other causes beyond their reasonable control,
including, but not limited to, compliance with any government law, ordinance or regulation,
acts of God, acts of omission, fires, strikes, lockouts, national disasters, wars, riots, material
or labor restrictions, transportation problems and/or any other cause beyond the reasonable
control of Lessor or Lessee.
28. HEADINGS NOT CONTROLLING.
Headings and titles used in this Lease are for reference purposes only and shall not
be deemed a part of this Lease.
29. ENTIRETY OF AGREEMENT.
This written instrument, including any documents attached hereto or incorporated
herein by reference, contains the entire understanding and agreement between Lessor and
Lessee, its assigns and successors in interest, as to the matters contained herein. Any prior
or contemporaneous oral or written agreement is hereby declared null and void to the extent
in conflict with any provisions of this Lease. The terms and conditions of this Lease shall
17
not be amended unless agreed to in writing by both parties and approved by the City
Council of Lessor.
I TNESS REOF, the parties hereto have executed this Lease in multiples, this
day of � , 2005.
C17O FORT WORTH: LESSEE N
By: _- — By:
arc O t Reed Pi
oa��
Assistant City Manager
ATTEST: ATTEST:
r
By: [—� By; yj 1�
City Secretary
APPROVED AS TO FORM AND LEGALITY:
By:
b
Assistant Ci y Attorney
M&C: C-20757
18
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 Reed Pigman,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 Reed Pigman and
that he executed the same as the act of Reed Pigman, for the purposes and consideration therein
expressed and in the capacity therein stated. ,t
GIVEN UNDER MY HAND AND SEAL OF OFFICE this 'T qday of unl, 2005.
C�
Nota ublic in and for the State of Texas
LESANIn
STATE OF TEXAS § NotPWfts"
ehto or Ten"
MY 104 n ftWon Expires f
COUNTY OF TARRANT § 1k Zooe
--W or-Imp1w
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 said 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/ I 2005.
Notary Public in and for the State of Texas
HETT'lE LANE
h+ MY COMMISSION EXPIRES.
July 26,2007
YY
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EXHIBIT A
PREMISES
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EXHIBIT B
MANDATORY IMPROVEMENTS
1. Development of two(2) 12,000 square feet metal Aircraft Storage Hangars and associated
parking and maneuvering areas.
21
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 5/24/2005
DATE: Tuesday, May 24, 2005
LOG NAME: 55TXJET HANGARS REFERENCE NO.: **C-20757
SUBJECT:
Authorize Execution of an Unimproved Ground Lease Agreement with Mandatory Improvements
with Mr. Reed Pigman, Jr. d/b/a Texas Jet, Inc. for 49,210 Square Feet of Unimproved Land for the
Proposed Development of Two 12,000 Square Foot Aircraft Storage Hangars and Associated
Parking/Maneuvering Areas at Fort Worth Meacham International Airport
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to execute an unimproved ground lease
agreement with mandatory improvements with Texas Jet, Inc. for 49,210 square feet of land at Fort Worth
Meacham International Airport for the proposed development of two 12,000 square foot aircraft storage
hangars and associated parking/maneuvering areas.
DISCUSSION:
Mr. Reed Pigman, Jr., d/b/a, Texas Jet, Inc. has proposed to lease 49,210 Square Feet of land south of
Taxiway Echo for the development of two 12,000 square foot aircraft storage hangars and associated
parking/maneuvering areas at Meacham Airport. The actual square footage of the lease site will be
determined by a subsequent ground survey.
The initial square footage rate of the ground lease will be $.21 per square foot. Based on the square
footage of the proposed development, this lease will generate estimated revenue of $10,334 annually, or
$861 a month. Based on an assumed start date of May 1, 2005, this lease will generate revenue of $4,305
for the remainder of the fiscal year.
The lease will provide for a thirty-year term with two five-year options to renew. The initial term of the lease
will commence upon the date of execution. Rental rates shall be subject to an increase on October 1st 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 established City and Aviation
Department policies.
In exchange for the new development, Mr. Pigman proposes to cancel Texas Jet, Inc. Ground Lease
Agreements for City Secretary Contracts (CSC) Nos. 11813 (Hangars 25N-30N), CSC - 9749 (Hangar 18N)
and CSC - 9960 (Hangars 23N, 24N and 36N). Texas Jet, Inc. then proposes to enter into new agreements
that extend the terms of the prior agreements by ten years. Canceling the existing agreements and
bundling the contracts under one new agreement will be both administratively more efficient and allow for
the extended term proposed by Texas Jet, Inc.
Current terms of the existing lease agreements will remain in effect until the end of the initial lease term.
Rental rates will then be adjusted to the unimproved ground rates as reflected in the current rates and the
charges in effect at that time. The rental rates of the existing lease agreement are subject to an increase,
October 1 st of any given year to reflect the upward percentage change, if any, in the Consumer Price Index
Logname: 55TXJET HANGARS Page 1 of 2
for the period since the last adjustment.
Texas Jet, Inc. has contributed significantly to the success of Fort Worth Meacham International Airport
through the successful promotion and management of their facilities. They have invested over $532,000 in
improvements to existing leased facilities on the airport. As a result of the contributions made by Texas Jet,
Inc. and the condition of the existing leased facilities, City staff is in support of this proposal, contingent
upon the completion of the proposed new facilities.
The site plan is in accordance with the Fort Worth Meacham International Airport Master Plan and is subject
to Federal Aviation Administration Airspace review and approval.
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.
TO Fund/Account/Centers FROM Fund/Account/Centers
PE40 491352 0551101 $10,334.00
Submitted for City Manager's Office by: Marc Ott (8476)
Originating Department Head: Mike Feeley (5403)
Additional Information Contact: Mike Feeley (5403)
Logname: 55TXJET HANGARS Page 2 of 2