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Home My WebLink AboutContract 26725 CITY SECRETARY CONTRACT NO. AMENDMENT NO. 2 TO CITY SECRETARY CONTRACT NO. 10723 FIXED BASE OPERATOR LEASE HANGAR 12-S FORT WORTH MEACHAM INTERNATIONAL AIRPORT This AMENDMENT NO. 2 TO CITY SECRETARY CONTRACT NO. 10723 ("Amendment") 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 its duly authorized Assistant City Manager, and AERO PLANE SHOP, INC. ("Lessee"), a Texas corporation. The following introductory provisions are true and correct and form the basis of this Amendment. A. On or about October 26, 1979 Lessor and William K. Leech, an individual, entered into City Secretary Contract ("CSC") No. 10723, a lease of unimproved land at Fort Worth Meacham International Airport ("Airport") known as the Hangar 12-S Lease Site (the "Leased Premises"). B. Pursuant to the Lease, Lessee constructed improvements, including a conventional hangar facility, on the Leased Premises (collectively the "Hangar Facility"). Title to Hangar Facility vested in Lessor upon the completion of its construction. Y C. On or about June 22, 1982 CSC No. 10723 was amended by CSC No. 11779 by adding additional unimproved land to the Leased Premises so that the Hangar Facility could be enlarged. CSC Nos. 10723 and 11779 shall hereafter collectively be referred to as the "Lease". D. Pursuant to CSC No. 17379, on or about September 12, 1989 Lessor consented to an assignment by William K. Leach of all right, title and interest in and to the Lease to Lessee. E. The initial term of the Lease expires September 30, 2004. The Lease provides that upon expiration of the initial term, Lessee shall have two (2) consecutive rights of first refusal to lease the Leased Premises for consecutive terms of five (5) years (each a "Renewal Term") each at the rental rate in effect at the start of each term for comparable real property at the Airport. D. With Lessor's consent, Lessee made substantial improvements to the Hangar Facility in the fall of 2000. Lessee was not required to make these improvements under the terms of the Lease. These improvements will significantly increase the value and marketability of the Hangar Facility after final expiration of the Lease. In return for this service, Lessor has agreed to amend the Lease to specify that rental rates for any Renewal Term of the Lease shall be at the unimproved ground rate then in effect. Pae 1 Amendment No.2 to City Secretary Contract No. 10723 between City of Fort Worth and Aero Plane Shop,Inc. r(�c �`, � ' �➢�t1Wo NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Lessor and Lessee agree as follows: 1. Paragraph A (Term) of Article IV (Term of Leasehold) of the Lease is hereby deleted in its entirety and replaced with the following: A. TERM. The term of this lease shall be for a period of twenty-five (25) years, commencing October 1, 1979 and expiring September 30, 2004, unless terminated earlier as provided herein (the "Initial Term"). If Lessee exercises and performs all of its duties and obligations during the Initial Term, Lessee shall have two (2) consecutive rights of first refusal to execute new leases for the demised premises for two additional consecutive terms of five (5) years each (each a "Renewal Term") on terms and conditions specified by Lessor at that time and at a rental rate specified in Article V of this Lease. In order to exercise a right of first refusal hereunder, Lessee shall provide Lessor with written notice of its desire to enter into a new lease not less than one hundred eighty(180) days nor more than two hundred seventy (270) days prior to the expiration of the term then in effect. If Lessee fails to exercise its first right of first refusal, it shall concurrently waive its second right of first refusal to lease the demised premises. 2. Paragraph B (Adjustment of Rentals) of Article V of the Lease is hereby deleted in its entirety and replaced with the following: B. ADJUSTMENT OF RENTALS. During any Renewal Term, for the period between the effective date of the Renewal Term and the immediately following September 30th, Lessee shall pay rent for the demised premises at a rate that complies with the rate charged at that time for unimproved land at the Airport, as specified by the Aviation Department's Schedule of Rates and Charges or similarly published schedule. Thereafter, Lessee's rental rate shall be subject to increase by Lessor on October 1st of any year to reflect the upward percentage change, if any, in the Consumer Price Index for the Dallas/Fort Worth Metropolitan Area, or similar index, as announced by the United States Department of Labor or successor agency (i), for the first increase, since the effective date of the Renewal Term then in effect and (ii), for any subsequent increase, since the effective date of the last increase; provided, however, that Lessee's rental rates, as adjusted, shall not at any time exceed the then-current rate charged for unimproved land at the Airport, as prescribed by Lessor's Schedule of Rates and Charges or similarly published schedule in effect at the time. 3. All capitalized terms used but not defined in this Amendment shall have the meanings assigned to them in the Lease. 4. All provisions and conditions of the Lease that are not expressly amended herein shall remain in full force and effect. Page 2 Amendment No.2 to City Secretary Contract No. 10723 lidBL a`, � L�lr;D between City of Fort Worth and Aero Plane Shop,Inc. EXECUTED this_ day of 12001. CITY OF FO W TH: AERO PLANE SHOP, INC.: By: Name:Mj ke X07.,M,v, Clarence J. Sury Assistant City Manager President ATTE T: ATTEST: By: h-' By: 2 Gloria P arson City Secretary APPROVED AS TO FORM AND LEGALITY: Peter Vaky Assistant City Attorney M&C No._ C-/tfS6 9 q-2Lf-D/ Page 2 OKRA L PECOM Amendment No.2 to City Secretary Contract No. 10723 M C��l�rjn-��// between City of Fort Worth and Aero Plane Shop,Inc. �a �9Vu+�UtlD ��Wu STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared Clarence J. Sury, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that the same was the act of the Aero Plane Shop, Inc. and that he executed the same as the act of Aero Plane Shop, Inc. for the purposes and consideration therein expressed and in the capacity therein stated. f. GIVEN UNDER MY HAND AND SEAL OF OFFICE this v day of' `C `1 , Vol . i� HETTIE LANE �r Nota Notary Public in and for the State of Texas Notary Public,State of Texas '. MY Commission Expires �..+_. F. ,2003 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 M;ke, 6Aen,6m-JCA, , 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 YfA day of , x2401 . ogPRY'p,e,., PATRICIA A ' GARCIA f* ►3*1 NOTARY PUBLIC Notary Public in and for the State of Texas � , stirState of Texas .,,,,,,,..• Comm.Exp. 03-31-2005 �p��l4:O�lnSl� G4��VU�� l�UU��16j��1,e�►�I�^GSt;tI�(W�}(UjS�(ll City of Fort Worth, Texas 4velvor And Council Communication DATE REFERENCE NUMBER LOG NAME PAGE 4/24/01 **C-18569 I 55SURY 1 of 1 SUBJECT LEASE AMENDMENT NO. 2 TO CITY SECRETARY CONTRACT NO. 10723 AND AMENDMENT NO. 2 TO CITY SECRETARY CONTRACT NO. 12261 GROUND LEASES WITH THE AERO PLANE SHOP AT FORT WORTH MEACHAM INTERNATIONAL AIRPORT RECOMMENDATION: It is recommended that the CityCouncilauthorize the City Manager to execute lease amendments with the Aero Plane Shop at Fort Worth Meacham International Airport for Hangars 12S and 13S, stipulating that the lease rate will be charged at the unimproved ground rental rate during the renewal period of the leases. DISCUSSION: City Secretary Contract (CSC) No. 10723 for Hangar 12S expires on September 30, 2002, with two 5- year rights of first refusal to renew the lease. CSC No. 12261 for Hangar 13S expires on December 31, 2006, with two 5-year rights of first refusal to renew the lease. There is some ambiguity in the lease language as to what the rental rate will be during renewal terms. Mr. Clarence J. Sury, President of the Aero Plane Shop, has made in excess of $45,000 worth of repairs to the hangars that are beyond the requirements of his leases. The hangars are owned by the City. In exchange for the repairs, Mr. Sury has asked for an amendment to the leases that would stipulate that the rental rates during the renewal period would continue at the unimproved ground rental rate in effect at that time. Given that the repairs Mr. Sury has completed will significantly add to the life of the hangar, staff recommends that the amendment be approved. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that the Revenue Division of the Finance Department is responsible for the collection and deposit of all fees due under these leases. MG:k Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY Office by: (to) PE40 491352 0552001 Mike Groomer 6140 Originating Department Head: Lisa A.Pyles 5403 (from) Additional Information Contact: Lisa A.Pyles 5403 . 5