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Home My WebLink AboutContract 44763-A2 FORT WORTH CmrsEcR"Aw CONTRACT NO, December 20, 2017 Ed Riefenstahl BAC Education Foundation, Inc. 1150 S. Freeway Fort Worth, Texas 76104 Re: Second Renewal of the Amendment to Lease Agreement between the City of Fort Worth ("Lessee") and BAC Education Foundation Inc. ("Lessor") for space at 600 E. Rosedale (City Secretary Contract No. 44763, & 44763 A-1) Dear Mr. Riefenstahl: We have received your request to exercise the second option to renew the lease as amended at 600 E. Rosedale between the City of Fort Worth and the BAC Education Foundation. This letter will serve as confirmation by both parties that the lease will begin its second renewal term, effective August 30, 2017 and expiring on August 29, 2018. Please have this renewal notice signed by the appropriate party and email back to Robert Sturns at Robert.stums a,fortworthtexas.gov or mail to Robert Sturns, City of Fort Worth, Economic Development, 1150 S. Freeway, Fort Worth, Texas, 76104, for execution and the assignment of a contract number in the Office of the City Secretary of Fort Worth. A fully executed copy will be returned to you for your files. The signatures below indicate each party's concurrence with these terms. [SIGNATURES ON FOLLOWING PAGE] FL/ r OFFICIAL RECORD CITY SECRETARY FT,WORTH,TX /0 Q �J 19 Fort Worth kyfftl aECONOMIC DEVELOPMENT DEPARTMENT THE CITY OF FORT WORTH*1150 S.FREEWAY*FORT WORTH,TEXAs 76104 (817)87TWIr 1964-1993-2011 LESSEE: LESSOR: CITY OF FORT WORTH BAC EDUCATION FOUNDATION By: - Jesus J. Chapa, Ed Riefensta Assistant City Manager Chairman CONTRACT COMPLIANCE MANAGER By signing, I acknowledge that I am the person responsible for the monitoring and administration of this contract, including ensuring all perfonnance and reporting requirements. Name: `._ Title: pirtiv�vr- APPRO D AS TO FORM AND LEGALITY: By: V ' Leann Guzman Senior Assistant City Attorney T ATTES By: U: ;2 4KaY Ci Secretary TE}(p►s Form 1295: Not required Contract Authorization: M&C: L-15561 Date: 6/4/2013 OFFICW.RECORD C11'Y $ECRETARY Fort Worth "T, 4ORTH,TX brotri Nktwkaft ECONOMIC DEVELOPMENT DEPARTMENT 11111.1 II1''' THE CITY OF FORT WORTH*1150 S.FREEWAY*FORT WORTH,TEXAS 76104 1964•1993•2011 - M&C Review Page 1 of 3 Official site of the City of Fort Worth,Texas CITY COUNCIL AGENDA FoR�n COUNCIL ACTION: Approved on 6/4/2013 REFERENCE 17BAC-ED-FOUNDATION- DATE: 6/4/2013 NO., -15561 LOG NAME: LEASE-OPERATING AGREEMENT CODE: L TYPE: NON- PUBLIC NO CONSENT HEARING: SUBJECT: Authorize Lease and Operating Agreement with The BAC Education Foundation, Inc., to Manage and Operate the Newly Renovated Former Guinn Elementary School Building Located at 600 East Rosedale as a Business Incubator(ALL COUNCIL DISTRICTS) RECOMMENDATION: It is recommended that the City Council: 1. Authorize the execution of a three-year Lease and Operating Agreement with options to renew annually for three additional consecutive years with The BAC Education Foundation, Inc.,. in the amount of$1.00 per year for the purpose of managing and operating a business incubator in the newly renovated former Guinn Elementary School Building located at 600 East Rosedale; and 2. Authorize a transfer to The BAC Education Foundation, Inc., in the amount of$100,000.00 in grant funds available through the City's Agreement with the University of North Texas Health Science Center for the purpose of economic development,job creation and technology commercialization activities, M&C C-25800, and specifically for start-up capital for the business incubator. DISCUSSION: On December 6, 2011, (M&C C-25334) the City Council authorized the execution of a construction contract with Prime Construction Company in the amount of$709,000.00 plus the amount of $140,000.00 in contingency for the interior renovation of the former Guinn Elementary School Building. The renovation is completed. The building is now being proposed for use as a business incubator that would be managed and operated by The BAC Education Foundation, Inc. (The Foundation). Business incubators are used as a successful mechanism to start, assist and stabilize businesses. They increase the probability that businesses will succeed. Successful businesses, in- turn, create jobs and contribute to economic growth, as demonstrated by the success of the technology-focused business incubator, Tech Fort Worth, which is located in the former Guinn School Industrial Arts and Gymnasium Building. The City's component of the Fort Worth Business Assistance Center(BAC) is part of the Housing and Economic Development Department. It is located in the former Guinn Middle School Building, along with other business support organizations that provide business training, counseling and financing. Additionally, The Foundation is a non-profit component to the BAC. The Foundation supports the mission of the BAC and its non-profit status allows it to seek and obtain corporate sponsorships. The Foundation represents a public/private partnership with the City as reflected by its Board of Directors, which consists of major corporate representatives and small business owners who possess a broad range of business expertise and experience. Since the Foundation already supports the mission of the BAC, provides business expertise and experience, has extensive history with supporting the mission of the BAC and is able to seek private sector sponsorships and other funding sources, it is uniquely positioned to manage and operate the proposed business incubator. To assist the Foundation in fulfilling its role to manage and operate the http://apps.cfwnet.org/council_packet/mc_review.asp?ID=18485&councildate=6/4/2013 12/22/2017 ' M&C Review Page 2 of 3 incubator, the City will lease the former Guinn Elementary School Building to the Foundation for $1.00 per year for a three-year period with an option to renew annually for three additional consecutive years for$1.00 per year. The lease terms of the Agreement between the Foundation and the City are: The lease begins immediately upon execution of the Agreement and continues for three-years, with three one-year renewal terms exercisable by the City; The Foundation will use the leased building as a business incubator and will sublease offices within the facility to its clients to support their growth and development; The Foundation will retain all sublease revenue generated by clients; The City will cover building utilities, maintenance, security, janitorial, insurance and any taxes, if any, imposed on the property using existing the University of North Texas Health Science Center (UNTHSC) grant funds available; there will be no new impact to the general fund; and Either party can terminate the lease for cause or convenience and shall provide a 90 day notice of intent to terminate. The operating terms of the Agreement between the Foundation and the City are: The City will transfer to the Foundation a lump sum in the amount of $100,000.00 in UNTHSC grant funds upon execution of the Agreement as incubator start-up capital; The City will transfer $100,000.00 in UNTHSC grant funds each subsequent year to the Foundation, with City Council approval through a Mayor and Council Communication and contingent upon grant fund availability. The annual transfer of UNTHSC grant funds will be dispersed in four quarterly installments in the amount of$25,000.00 beginning in January 2014 and each subsequent January to help subsidize incubator operations; The Foundation will pursue and retain private sector sponsorships and other funding sources identified to help offset incubator operating costs; The Foundation shall be responsible for generating sufficient funds to cover the remaining costs of operating the incubator that will not be covered by the grant; The Foundation shall provide quarterly reports and an annual report to the City regarding incubator operations and shall include relevant information requested by the City (e.g. number of companies in the incubator, terms and duration of subleases, basic client company information, entrance and exit criteria, training and support services provided or referred, number of companies graduated, jobs created, jobs retained, financial information regarding operations, and other reasonable information determined by the City); The Foundation shall be responsible for hiring appropriate personnel required to effectively manage and operate the incubator; The City shall designate a primary liaison to the Foundation to serve as its primary point of contact and for communication and discussion of relevant matters; and The Foundation shall meet periodically or as needed with the City to discuss incubator operations and other relevant matters. The incubator, which is housed within the former Guinn Elementary School at 600 East Rosedale, is located in COUNCIL DISTRICT 8, but will serve Fort Worth residents in ALL COUNCIL DISTRICTS. FISCAL INFORMATION/CERTIFICATION: The Financial Management Services Director certifies that funds are available in the current operating budget, as appropriated, of the Grants Fund. http://apps.cfwnet.org/council_packet/mc_review.asp?ID=18485&councildate=6/4/2013 12/22/2017 M&C Review Page 3 of 3 TO Fund/Account/Centers FROM Fund/Account/Centers GR76 539120 017452286020 $100.000.00 Submitted for City Manager's Office by: Tom Higgins (6140) Originating Department Head: Jay Chapa (8517) Additional Information Contact: William Johnson (212-2674) ATTACHMENTS BAC Location Map.pdf http://apps.cfwnet.org/council_packet/mc_review.asp?ID=18485&councildate=6/4/2013 12/22/2017