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HomeMy WebLinkAboutContract 23785 04-08-98 A11 :08 IN CITY SECRETARY � ��S CONTRACT NO. FORT WORTH SPINKS AIRPORT HANGAR LEASE AGREEMENT (TERM) This HANGAR LEASE AGREEMENT ("Lease") is made and entered into by and between the CITY OF FORT WORTH ("Lessor"), a home rule municipal corporation situated in Tarrant, Denton and Johnson Counties, Texas acting by and through Ramon Guajardo, its duly authorized Assistant City Manager, and HARRY PHILLIPS("Lessee"), an individual. In consideration of the mutual covenants,promises and obligations contained herein, Lessor and Lessee agree as follows: 1. PROPERTY LEASED. Lessor demises and leases to Lessee the following real property (hereinafter referred to as "Premises") at Fort Worth Spinks Airport("Airport") in Fort Worth, Tarrant and Johnson Counties, Texas: 1.1. 9,240 square feet of conventional hangar space identified as Hangar No. 32 and shown in Exhibit "A", attached hereto and incorporared herein by reference for all purposes; and 1.2. 2,365 square feet of improved land, as shown in Exhibit "A"; and 1.3. 4,890 square feet of unimproved land, as shown in Exhibit "A." The measurements herein are approximate and shall be subject to a survey performed by Lessor during the Initial Term of this Lease. If this survey reflects measurements that are different from those set forth in this Section 1, Lessor and Lessee shall execute a written amendment to this Lease that establishes the correct measurements for each type of property comprising the Premises. If Lessee reasonably disagrees with the results of this survey, Lessee may terminate this Lease by providing Lessor with a reasonable written explanation of Lessee's disagreement and by providing Lessor with a written letter of termination not less than thirty (30) days prior to the effective date of such termination. 2. TERM OF LEASE. 2.1. Initial Term and Renewal Terms. The Initial Term of this Lease shall commence on the date of execution ("Effective Date") and expire at 11:59 P.M. on September 30, 1998. Unless terminated earlier in accordance with this Lease, this Lease automatically shall renew for succssive Renewal Terms of one year each, commencing at 12:00 A.M. on October 1" of each year and expiring at 11:59 P.M. the following September 30'; provided, however, that the rental rates for each Renewal Term shall be adjusted to comply with the rates prescribed for the Premises by Lessor's published Schedule of Rates and Charges in effect at the same time. 2.2. Holdover. If Lessee holds over after the expiration of the Initial or 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 the Schedule of Rates and Charges in effect at the time. 3. RENT. 3.1. Rent During Initial Term. During the Initial Term of this Lease, Lessee hereby promises and agrees to pay Lessor, as annual rent for the Premises, Seventy-nine Cents ($0.79) per square foot of conventional hangar space, Ten Cents ($0.10) per square foot of improved land, and Eight Cents ($0.08) per square foot of unimproved land, for a total annual sum of Seven Thousand Nine Hundred Twenty-seven and 30/100 Dollars ($7,927.30), payable in equal monthly installments of Six Hundred Sixty and 60/100 Dollars ($660.60). The rental rates under this Lease are based on Lessor's published Schedule of Rates and Charges. Lessee shall pay the first and last months' rent in advance. In the event that this Lease commences on a day other than the first (1') day of any given month, the first month's rental payment shall be prorated in accordance with the number of days remaining in that month. 3.2. Rent During Renewal Terms. Rental rates for each Renewal Term shall comply with the rates prescribed for the Premises by Lessor's published Schedule of Rates and Charges in effect at the same time. 3.3. Payment Dates and Late Fees. Monthly rental payments are due on or before the first (1 st) 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 17. Rent shall be considered past due if Lessor has not received full payment after the (10th) day of the month for which payment is due. Lessee shall pay a late penalty charge of ten percent (10%) per month on top of the entire month's rent for each month in which rent is past due. 4. UTILITIES. Lessee agrees and covenants that it will pay for all utilities in use on the Premises, as well as all deposits and other related costs, including those required for the installation of meters. Lessee further covenants and agrees to pay all costs and expenses for any extension, installation, maintenance or repair of any and all utilities serving the Premises, including, but not limited to, water, sanitary sewer, electric, gas and telephone utilities. In addition, Lessee agrees that all equipment which may be used on the Premises shall fully comply with the City of Fort Worth Mechanical,Electrical,Plumbing,Building and Fire Codes, as amended. 5. MAINTENANCE AND REPAIRS. 5.1. Maintenance by Lessee. Lessee agrees to keep and maintain the Premises in a good, clean and sanitary condition at all times. Lessee, at its own expense, shall provide for the temporary storage of trash and garbage and shall also arrange and pay for the sanitary transport and permanent disposal away from the Airport of all of Lessee's trash, garbage and refuse. Lessee covenants and agrees that it will not make or suffer any waste of the Premises. Lessee will, at its own expense, make all repairs necessary to prevent the deterioration in condition or value of the Premises as existing on the Effective Date of this Lease. Lessee is responsible for all damages caused by the negligence or misconduct of Lessee, its agents, servants, employees, contractors, subcontractors, licensees, invitees or trespassers and agrees to repair at its own expense all such damages. Lessee agrees that, except as otherwise expressly provided herein, 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's sole risk or at the sole risk of those claiming under Lessee. 5.2. Maintenance by Lessor. Lessor shall maintain the Airport, including the Premises, in accordance with all minimum standards required by the Federal Aviation Administration ("FAA") for the operation of a public airport. 5.3. Environmental Remediation. 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 government environmental regulations or standards that is caused by Lessee, its officers, agents, servants, employees, contractors, subcontractors or invitees. Lessor, 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 government environmental regulations or standards that is caused by Lessor, its officers, agents, servants, employees, contractors, subcontractors, prior tenants or invitees. 6. CONSTRUCTION AND IMPROVEMENTS. 6.1. Discretionary Improvements. Lessee may, at its sole expense, modify, renovate or improve the Premises. However, Lessee may not initiate any kind of modification, renovation, improvement or construction on or to the Premises unless it first submits all plans 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. 6.2. Process for Approval of Plans. Lessee's plans for construction and improvements must conform with the Airport's architectural standards and must also receive written approval by the Directors of Lessor'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, now in force or hereafter prescribed, including, without limitation,the Americans with Disabilities Act of 1990,as amended. 6.3. Documents. Lessee shall supply the Director of Airport Systems or authorized representative with comprehensive sets of documentation relative to any modification, renovation, construction or improvement, including, at a minimum, as-built drawings of each completed project. As-built drawings shall be new drawings or red-line changes to drawings previously provided to the Director of Airport Systems or authorized representative. 6.4. Bonds Required of Lessee. Prior to the commencement of any modification, renovation or improvement or construction, Lessee shall deliver to Lessor payment and performance bonds executed by a corporate surety in accordance with the 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 modification, renovation, improvement or construction project, and (ii) full payments to all persons, firms, corporations or other entities with whom Lessee has a direct relationship for the performance of such modifcation,renovation, improvement or construction project. In lieu of the required bonds, 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. Lessor will maintain cash deposits in a non-interest bearing account. 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 modification, renovation, improvement or construction project, or if claims are filed by third parties on grounds relating to such modification, renovation, improvement or construction project, Lessor shall be entitled to draw down the full amount of Lessee's cash deposit or certificate of deposit. 6.5. Bonds Required of Lessee's Contractors. Prior to the commencement of any modification, renovation, improvement or 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 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 construction projects. 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 Lessor 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 Lessor and Lessee as dual obligees. If Lessee serves as its own contractor, Section 6.4 shall apply. 6.6. Releases by Lessor Upon Completion of Improvements. Lessor will allow Lessee a dollar-for-dollar reimbursement from its cash deposit account or reduction of its claim upon Lessee'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. 7. INSPECTION AND ACCEPTANCE OF PREMISES. Lessor, through its officers, agents, servants or employees, reserves the right to enter the Premises at any time in order to perform any and all duties or obligations which Lessor is authorized or required to do under the terms of this Lease or to perform its governmental duties under federal, state or local rules, regulations and laws (including, but not limited to, inspections under applicable Health, Mechanical, Building, Electrical, Plumbing, and Fire Codes, or other health, safety and general welfare regulations). Lessor shall provide Lessee with advance notice of inspection when reasonable under the circumstances. Lessee will permit the Fire Marshal of the City of Fort Worth or his agents to make inspection of the Premises at any time, and Lessee will comply with all recommendations made to Lessee by the Fire Marshal or his agents 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 added or amended. Lessee shall maintain in a proper condition accessible fire extinguishers of a number and type approved by Fire Underwriters for the particular hazard involved. Lessor retains the right to perform or cause to be performed air sampling on the Premises to check for the presence of airborne asbestos fibers. Lessee agrees to allow Lessor full access to the Premises to perform such tests. Lessor will make the results of any such tests available to Lessee at Lessee's request. Additionally, Lessee's rights hereunder shall be subject to all existing and future utility 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 additionally shall be subject to all rights granted by all ordinances or statutes which allow such utility companies to use publicly-owned property for the provision of utility services. Lessee agrees and covenants that it has inspected the Premises and is fully advised of its own rights without reliance upon any representation made by Lessor concerning the condition of the Premises. Lessee accepts the Premises in its present condition as satisfactory for all purposes set forth in this Lease. 8. PARKING. 8.1. Aircraft. Lessee shall park, tie-down or store transient or visiting aircraft either inside the hangar on the Premises or on the aircraft parking area shown on Exhibit"A". 8.2. Automobiles. Lessee shall park or keep parked company vehicles and the vehicles of its employees, licensees or invitees in the automobile parking area shown on Exhibit "A". 9. USE OF PREMISES. Lessee agrees to use the Premises exclusively for aviation or commercial activities. It is specifically agreed and stipulated that the following concessions are prohibited under this lease, unless specifically approved in writing by the Director of Airport Systems or authorized representative: (i) ground transportation for hire; (ii) motor vehicle rental, including taxi and limousine service; (iii)food sales; (iv)barber and valet services; and(v) alcoholic beverage sales. 10. SIGNS. 10.1. Aircraft Movement Zone Sign. Lessee shall install and maintain, at its sole cost and expense, a sign by any exit inside a hangar structure on the Premises which indicates that the area outside the hangar is located within an aircraft movement zone. Lessor must approve in writing the wording, size,appearance and location of this sign prior to its installation. 10.2. Additional Signs. Lessee may, at its own expense and with the prior written approval of the Director of Airport Systems or authorized representative, create, install and maintain signs on the Premises indicating Lessee's business. Such signs, however, must be in keeping with the size,color, location and manner of display of other signs at the Airport. 10.3. Maintenance and Removal of Signs. Lessee shall maintain all signs in a safe, neat, sightly and physically good condition. Lessee agrees to pay Lessor for any damage, injury or necessary repairs to the Premises or other Airport property resulting from the installation, maintenance or removal of any such sign. Lessee also agrees to remove any sign at its own expense immediately upon receipt of instructions for such removal from the Director of Airport Systems or authorized representative. 11. RIGHTS AND RESERVATIONS OF LESSOR. Lessor hereby retains the following rights and reservations: 11.1. All fixtures and items permanently attached to any structure on the Premises belong to Lessor, and any additions or alterations made thereon shall immediately become the property of Lessor. 11.2. 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. 11.3. Lessor reserves the right to close temporarily the Airport or any of its facilities for maintenance, improvements, safety or security of either the Airport or the public, or for any other cause deemed necessary by Lessor. In this event, Lessor shall in no way be liable for any damages asserted by Lessee, including, but not limited to, damages from an alleged disruption of Lessee's business operations. 11.4. 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. 11.5. 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. 11.6. 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. 11.7. Lessor reserves unto itself, and unto successors and assigns, for the use and benefit of the public, a right of flight for the passage of aircraft through the airspace above the surface of the public, a right of flight for the passage of aircraft through the airspace above the surface of the Premises; the right to cause noise in such airspace as may be inherent in the operation of aircraft for navigation of or flight in such airspace; and the right for a use of such airspace for the landing, take off or operation of aircraft at the Airport. 12. INSURANCE. 12.1. 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 13, 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: • Commercial General Liability: $1,000,000 per occurrence, including products and completed operations; • Automobile Liability: $1,000,000 per accident, including, but not limited to, coverage on any automobile used in Lessee's operations on the Premises; • Hangarkeepers Legal Liability: $1,000,000 per occurrence. 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. 12.2. Adjustments to Required Coverage and Limits. Insurance requirements, including additional types of coverage and increased limits on existing coverages, are subject to change at Lessor's option, and Lessee will accordingly comply with such new requirements within thirty(30)days following notice to Lessee. 12.3. 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, on demand, provide Lessor with evidence that it has maintained such coverage in full force and effect. 12.4. Additional Reguirements. 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. 13. 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. 14. 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 THE USE OF THE AIRPORT UNDER THIS LEASE OR WITH THE LEASING, MAINTENANCE, USE, OCCUPANCY, EXISTENCE OR LOCATION OF THE PREMISES, EXCEPT TO THE EXTENT CAUSED BY THE NEGLIGENT ACTS OR OMISSIONS OR INTENTIONAL MISCONDUCT OF LESSOR. 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 OF THE AIRPORT UNDER THIS LEASE OR WITH THE LEASING, MAINTENANCE, USE, OCCUPANCY, EXISTENCE OR LOCATION OF THE PREMISES, EXCEPT TO THE EXTENT CAUSED BY THE NEGLIGENT ACTS OR OMISSIONS OR INTENTIONAL MISCONDUCT OFLESSOR. LESSEE ASSUMES ALL RESPONSIBILITY AND AGREES TO PAY LESSOR FOR ANY AND ALL INJURY OR DAMAGE TO LESSOR'S PROPERTY WHICH ARISES OUT OF OR IN CONNECTION WITH ANY AND ALL ACTS OR OMISSIONS OF LESSEE, ITS OFFICERS, AGENTS, EMPLOYEES, CONTRACTORS, SUBCONTRACTORS, LICENSEES, INVITEES, PATRONS OR TRESPASSERS, EXCEPT TO THE EXTENT CAUSED BY THE NEGLIGENT ACTS OR OMISSIONS OR INTENTIONAL MISCONDUCT OF LESSOR. LESSOR DOES NOT GUARANTEE POLICE PROTECTION TO LESSEE OR ITS PROPERTY. LESSOR SHALL NOT BE RESPONSIBLE FOR INJURY TO ANY PERSON ON THE PREMISES OR FOR HARM TO ANY PROPERTY WHICH BELONGS TO LESSEE, ITS OFFICERS, AGENTS, SERVANTS, EMPLOYEES, CONTRACTORS, SUBCONTRACTORS, LICENSEES, INVITEES OR PATRONS, AND WHICH MAY BE STOLEN, DESTROYED OR IN ANY WAY DAMAGED; AND LESSEE HEREBY INDEMNIFIES AND HOLDS HARMLESS LESSOR, ITS OFFICERS, AGENTS, SERVANTS AND EMPLOYEES FROM AND AGAINST ANY AND ALL SUCH CLAIMS, EXCEPT TO THE EXTENT CAUSED BY THE NEGLIGENT ACTS OR OMISSIONS OR INTENTIONAL MISCONDUCT OF LESSOR. 15. WAIVER OF CHARITABLE IMMUNITY OR EXEMPTION. If Lessee, as a charitable association, corporation, partnership, individual enterprise or entity, claims immunity to or an exemption from liability for any kind of property damage or personal damage, injury or death, Lessee hereby expressly waives its rights to plead defensively any such immunity or exemption as against Lessor. 16. TERMINATION. In addition to termination rights contained elsewhere in this Lease, Lessor shall have the right to terminate this Lease as follows: 16.1. By Either Party. Lessor or Lessee may terminate this Lease for any reason, to be effective on the expiration date of the term in effect at the time, by providing the other party with written notice not less than thirty (30) days prior to the effective date of such termination. 16.2. 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) calendar days. If Lessee fails to pay the balance outstanding within such time, Lessor shall have the right to terminate this Lease immediately. 16.3. 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, default or failure within such time period, Lessor shall have the right to terminate this Lease immediately. 16.4. Lessee's Financial Obligations to City upon Termination, Breach or Default. If Lessor terminates this Lease for any non-payment of rent, fees or other charges or for any breach or default as provided in Sections 16.1 or 16.2 of this Lease, Lessee shall be liable for and shall pay to Lessor all arrearages of rentals, fees and charges payable hereunder and for all preceding breaches, defaults or failures. 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. 16.5. Airport Development Plans. If Lessor's City Council approves any plan for development of the Airport that involves the Premises, Lessor may terminate this Lease following ninety (90) days' written notice to Lessee. 16.6. Rights of Lessor Upon Termination or Expiration. Upon termination or expiration of this Lease or any part thereof, 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. Lessor shall also have the right to take full title to any such fixtures or equipment. Lessee shall return the Premises to Lessor in the same or better condition than existed on the Effective Date of this Lease, subject to ordinary and reasonable wear and tear. 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, except for wrongful termination. Any right, interest or remedy which shall have accrued during any term of this Lease shall not be extinguished or waived by the termination or expiration of this Lease or any part thereof, but may be enforced by the party for whose benefit such right, interest or remedy shall have accrued in accordance with the terms and provisions of this Lease as if this Lease had not terminated or expired. 17. NOTICES. Notices required pursuant to the provisions of this Lease shall be conclusively determined to have been delivered when (1) hand-delivered to the other party, its agents, employees, servants or representatives, or(2)deposited in the United States Mail,postage prepaid,addressed as follows: To LESSOR: For Rent Payments: For All Other Matters: CITY OF FORT WORTH DEPT OF AVIATION REVENUE OFFICE MEACHAM INTL AIRPORT PO BOX 976 4201 N MAIN ST STE 200 FORT WORTH TX 76101-0976 FORT WORTH TX 76106-2736 To LESSEE: MR HARRY PHILLIPS PO BOX 493 LILLIAN TX 76061 18. ASSIGNMENT AND SUBLETTING. 18.1. In General. Lessee shall not assign, sell, convey, sublease or transfer any of its rights, privileges, duties or interests granted by this Lease without the advance written consent of Lessor. 18.2. Conditions of Approved Assignments and Subleases. If Lessor consents to any assignment or sublease, all terms, covenants and agreements set forth in this Lease shall apply to the assignee or sublessee, and such assignee or sublessee 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 or sublease shall not relieve Lessee of its obligations hereunder, including payment of rentals, fees and other charges. 19. 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 immediately. 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. 20. 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. 21. 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 the City of Fort Worth and the City of Fort Worth Police, Fire and Health Departments; all rules and regulations established by the Director of Airport Systems; and all rules and regulations adopted by the City Council pertaining to the conduct required at airports owned and operated by the City, 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. 22. NON-DISCRIMINATION 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. 23. LICENSES AND PERMITS. Lessee shall, at its sole expense, obtain and keep in effect all licenses and permits necessary for the operation of its business at the Airport. 24. GOVERNMENTAL POWERS. It is understood and agreed that by execution of this Lease, Lessor does not waive or surrender any of its governmental powers. 25. 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. 26. VENUE AND JURISDICTION. Should any action, whether real or asserted, at law or in equity, arise out of the terms of this Lease or by Lessee's operations on the Premises, venue for such action shall lie in state courts located in Tarrant County, Texas or in 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. 27. ATTORNEYS' FEES. In any action brought by Lessor for the enforcement of the obligations of Lessee, Lessor shall be entitled to recover interest and reasonable attorneys' fees. 28. 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. 29. 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 by any governmental authority, transportation problems and/or any other cause beyond the reasonable control of the parties. 30. 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. 31. ENTIRETY OF AGREEMENT. This written instrument, including any documents 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 not be amended unless agreed to in writing by both parties and approved by the City Council of Lessor. IN WITNESS WHEREOF,the parties hereto have executed this Lease this day of , 19 CITY OF FORT WORTH: HARRY PHILLIPS: By: , Assistant City ManagLIrr ATTEST: ATTEST: By: By: City Secretary APPROVED AS TO FORM AND LEGALITY: By: -. d3"�6 Assistant City Att ey M& C:—Z-/o 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 Harry Phillips, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that the same was his act and that he executed the same as his act for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE thisd&AW day of , 1998. r OCIa4G000000000O00GO00400 g " :'+►^�"!%o` BARBARA EKSTRAND a Notary Public,State of Texas g !%7 Commission; '`Nl y Commission Expires 05-16-1998 Notary Public in and for the State of Texas �oo000000000000000�or. 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 Ramon Guajardo, 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 , 1998. otary Public in an or the State of Texas SARAH JANE ODLE NOTARY PUBLIC J State of Texas OF Av Comm. Exp.01-29-2D02 LEGAL DESCRIPTION FOR LEASE SITE 32-N AT FORT WORTH SPINKS AIRPORT A parcel of land out of Block 5, Fort Worth Spinks Airport according to the plat recorded in Cabinet A,Slide 353, Plat Records,Tarrant County,Texas and being more particularly described using coordinates and bearings based on the Texas State Coordinate System, North Central Zone, N.A.D. 27 as follows: BEGINNING at a 5/8"iron rod with red plastic cap stamped"City of Fort-Worth Survey Section" set for the northeast corner of lease site 32-N. From which a 1/2" iron rod found at the northeast corner of said Block 5,bears North 89 degrees 58 minutes 23 seconds East 111.44' feet and North 00 degrees 44 minutes 56 seconds East,624.25' feet,the coordinates of said beginning point are X=2,061,527.65,Y=329,497.69; THENCE: South 00 degrees 44minutes 56 seconds West,with the east line of said lease, 199.0' feet to a 5/8" iron rod with red plastic cap stamped"City of Fort-Worth Survey Section" set for its southeast corner; THENCE: South 89 degrees 58 minutes 23 seconds West,with the south line of said lease,97.0' feet to an 5/8" iron rod with red plastic cap set stamped"City of Fort-Worth Survey Section"set for its southwest corner; THENCE: North 00 degrees 44 minutes 56 seconds East,with the west line of said lease, 199.0' feet to a 5/8" iron rod with red plastic cap stamped"City of Fort-Worth Survey Section"set for the northwest corner of said lease; THENCE: North 89 degrees 58 minutes 23 seconds East,with the north line of said lease,97.0' feet to the point of beginning and containing 19,303 square feet of land more or less. 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DISCUSSION: Harry Phillips proposes to lease Hangar #32 at Spinks Airport and certain surrounding improved and unimproved land. The initial term of the lease will commence on the date of execution and expire September 30, 1998. The lease will thereafter automatically renew for periods of one (1) year at the prevailing hanger rate in effect at that time, unless either party terminates the lease effective on the next expiration date. Due to the hangar age and condition, staff proposes a conventional hangar rate of $0.79/per square foot, which is a variation from the standard $1.10/per square foot as reflected in the current City Council approved Schedule of Rates and Charges. All other terms and conditions of the lease agreement will be in accordance with standard City and Aviation Department policies. The square footage of areas to be leased and the rental rates are as follows: Annual Rent Monthly Rent Conventional Hangar: $7,299.60 $608.30 9,240 S.F. @ $0.79/s.f. Improved Land: $ 236.50 $ 19.70 2,365 S.F. @ $0.10/s.f. Unimproved Land: $ 391.20 $ 32.60 4,890 S.F. @ $0.08/s.f. $7,927.30 $660.60 FISCAL INFORMATION/CERTIFICATION: The Revenue Collection Office of the Fiscal Services Department is responsible for the collection and deposit of funds due the City under this agreement. RG:m Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY Office by: (to) PE40 491312 0552002 $7,299.60 APPHOYED Ramon Guajardo 6140 PE40 491052 0552002 $ 236.50 � Originating Department Head: PE40 491352 0552002 $ 391.20 ("Iffy COUNCH. E/ Lisa A. Pyles 5400 (from) Additional Information Contact: cii Ike Thompson 447-8304