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HomeMy WebLinkAboutContract 32239 CITY SECRETARY. alT CO!,JTRACT NO. FORT WORTH ALLIANCE AIRPORT UNIMPROVED GROUND LEASE AGREEMENT 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 situated partly in Tarrant, Denton, and Wise Counties, Texas acting by and through Marc Ott, its duly authorized Assistant City Manager, and Alliance Air Partners, LTD. ("Lessee"), a Texas limited partnership, acting by and through Timothy D. Ward its duly authorized president of its general partner,Alliance Air Services, Inc. a Texas corporation. WITNESSETH: That 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 59,500 square feet of unimproved ground space at Fort Worth Alliance Airport ("Airport") in Fort Worth, Tarrant County, Texas, ("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 commence on the date of execution ("Effective Date") and expire at 11:59 P.M. on August 15, 2010 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 the right of first refusal to renew this Lease for one (1) additional term of five (5) years at a rental rate for such building space at the Airport which, on the effective date of a Renewal Term, complies with the Schedule of Rates and Charges published by the City as to improved ground space at the Airport, and on terms and conditions that may be prescribed by Lessor at the time, if Lessor offers the Premises for lease; provided, however, that if Lessee does not renew this Lease in writing for a first Renewal Term, Lessee will forgo its right of first refusal to lease the Premises for a second Renewal Term. In order to exercise its rights of first refusal to renew this Lease, Lessee shall notify the City in writing of its desire to renew this Lease no less than ninety (90) days and no more than one hundred eighty (180) days prior to the expiration of the term then in effect. ,I�i!I J ro jTr'�s3ir 0 � ; r-r� ' r,X1.7 ry r 3 �Gc i�` i U C, PPP �' 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. Annual Rent for Premises. Lessee shall commence the payment of rent upon the Effective Date. From the Effective Date until September 30, 2005, Lessee shall pay Lessor annual rent in the amount of $19,040.00 based on a rental rate of $.32 per square foot, which will be payable in twelve monthly installments of $1,586.66. Thereafter, annual rent for the Premises shall be adjusted in accordance with Sections 3.2 and 3.3 of this Lease. In the event that the Effective Date of this Lease is a day other than the first (1St) day of a respective month, the first month's rental payment shall be prorated in accordance with the number of days remaining in that month. Prior to the commencement of this Lease, Lessee shall pay one (1) full month's rent in advance. 3.2 Rent Adiustments. On October 1, 2005, and on October 1st 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 ("CPI") for the Dallas/Fort Worth Metropolitan Area, as announced by the United States Department of Labor or successor agency during the preceding twelve-month period ("CPI Change"). If there is no CPI Change or the CPI Change is downward, the rental rate for the Premises shall remain constant until the following October 1St. In no event shall the rental rate for the Premises ever be adjusted downward or ever exceed the 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. 3.3. Five-Year Adjustments. In addition to the Annual Rent Adjustments, on October 1, 2010, and every fifth (5) year thereafter for the remainder of the Initial Term (i.e. on October 1st of 2015, 2020 and 2025), rent shall automatically be adjusted to equal the then-current rates prescribed by the 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. 3.4. Payment Dates and Late Fees. 2 Monthly rent payments are due on or before the first (lst) 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 14. 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. 4. UTILITIES. Lessee, at Lessee's sole cost and expense, shall be responsible for the installation and use of all utilities service 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, 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 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. 5. MAINTENANCE AND REPAIRS. 5.1. 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 will, at Lessee's sole cost and expense, make all repairs necessary to prevent the deterioration in condition or value of the Premises, including, but not limited to, the maintenance of and repairs to all structures, including, but not limited to, doors, windows and roofs, 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, 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' 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 Lessee's sewer or steam pipes, from water from any source whatsoever, or from any heating fixtures, plumbing fixtures, electric wires,noise, gas or odors, or from causes of any other matter. 3 5.2. 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"). 5.3. Inspection. 5.3.1. 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 any such inspection during Lessee's ordinary business hours and shall use its best efforts to provide Lessee at least twenty-four (24)hours notice prior to inspection. 5.3.2. 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. 5.3.3. 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. 5.3.4. 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. 5.4. 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 4 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 REMEDL4TION 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. 6. CONSTRUCTION AND IMPROVEMENTS. There are no required improvements under this Lease. 7. USE OF PREMISES. Lessee hereby agrees to use the Premises solely for aviation-related purposes only. Lessee is hereby prohibited from the provision, without limitation, of the following concessions: ground transportation for rent or hire, including taxi and limousine services; food sales; barber and valet services; alcoholic beverage sales; sales of pilot supplies; newsstands; and gift and other retail shops. However, Lessee may install and operate vending machines on the Premises for use by Lessee and its employees. 8. SIGNS . Lessee may, at its sole expense and with the prior written approval of the Director of Airport Systems or his or her authorized designee, 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. 9. RIGHTS AND RESERVATIONS OF LESSOR. Lessor hereby retains the following rights and reservations: 9.1. 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. 9.2. Lessor reserves the right to temporarily close 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. Except in the event of an emergency, W,l. T�� iJ ��n, � ��, Lessor will provide Lessee written notice of any planned closing of the Airport at least forty-eight(48) hours in advance thereof. In any event of closing, whether planned or for an emergency, 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. 9.3. 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. 9.4. 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. 9.5. 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. 9.6. 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. 10. INSURANCE. 10.1. 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 Section 10 of this Lease, 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: • Prope Fire and Extended Coverage on all improvements at full replacement cost limit; 6 • 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; 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. 10.2. 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 when necessary to cover Lessee's operations at the Airport. Lessee will accordingly comply with such new requirements within thirty (30) days following notice to Lessee. Such notice to Lessee shall provide reasonable evidence of the necessity for such new insurance requirements. 10.3. 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. 10.4. Additional Requirements. Lessee shall maintain its insurance with underwriters authorized to do business in the State of Texas. 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. 11. 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 7 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, 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. 12. INDEMNIFICATION. LESSE SHALL BE LIABLE AND RESPONSIBLE FOR ANY CLAIMS, DEMANDS, LAWSUITS OR OTHER ACTIONS FOR DAMAGES OF ANY KIND, INCLUDING, BUT NOT LIMITED TO, PROPERTY LOSS, PROPERTY DAMAGE AND OR PERSONAL INJURY OF ANY KIND OR CHARACTER, INCL UDING DEATH, WHETHER REAL OR ASSERTED, ARISING OUT OF OR IN CONNECTION WITH ITS USE OF OR OPERATIONS ON THE PREMISES UNDER THIS LEASE, EXCEPT TO THE EXTENT CAUSED BY THE GROSS NEGLIGENCE OR INTENTIONAL MISCONDUCT OF LESSOR,ITS OFFICERS,AGENTS, SERVANTS OR EMPLOYEES. LESSEE, AT LESSEE'S OWN EXPENSE, SHALL INDEMNIFY, DEFEND AND HOLD HARMLESS LESSOR, ITS OFFICERS, AGENTS, SERVANTS AND OR EMPLOYEES, FROM AND AGAINST ANY CLAIM, LAWSUIT OR OTHER ACTION FOR DAMAGES OF ANY KIND OR CHARACTER, INCLUDING, BUT NOT LIMITED TO, PROPERTY DAMAGE OR LOSS (INCLUDING ALLEGED DAMAGE OR LOSS TO LESSEE'S BUSINESS AND ANY RESULTING LOST PROFITS) AND OR PERSONAL INJURY, INCLUDING DEATH, 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 SERVANTS, AGENTS OR EMPLOYEES. LESSOR DOES NOT GUARANTEE POLICE PROTECTION TO LESSEE OR ITS 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 ON THE PREMISES WHICH IS RELATED TO LESSEE'S Tai h� VVh r OPERATIONS THEREON AND SHALL COOPERATE WITH LESSOR IN THE IMPLEMENTATION AND ENFORCEMENT OF LESSOR'S SECURITY PLAN AT THE AIRPORT.. LESSEE SHALL PA Y ALL FINES IMPOSED B Y THE FAA ON LESSOR OR LESSEE RESULTING FROM LESSEE'S 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. 13. TERMINATION. In addition to termination rights contained elsewhere in this Lease, Lessor shall have the right to terminate this Lease as follows: 13.1. 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 thirty (30) calendar days. If Lessee fails to pay the balance outstanding within such time, Lessor shall have the right to terminate this Lease immediately. 13.2. 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, commence to cure, adjust or correct the problem to the standard existing prior to the breach, and shall continue said efforts in a conscientious manner until said default is cured. If Lessee fails to cure, or undertake to cure, the breach or default within such time period, Lessor shall have the right to terminate this Lease immediately 13.3 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 breach or default as provided in Sections 13.1, 13.2 or 13.3 of this Lease, then subject to offsets for rents received by Lessor from Sublessees subsequent to the breach, 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. 13.4. Rights of Lessor Upon Termination or Expiration. 9 Upon termination or expiration of this Lease, and any exercised option periods, title to all improvements on the Premises 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. 14. 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: For All Other Matters: CITY OF FORT WORTH DEPTARTMENT OF AVIATION REVENUE OFFICE MEACHAM INTL AIRPORT 1000 THROCKMORTON STREET 4201 N MAIN ST STE 200 FORT WORTH TX 76106-6312 FORT WORTH TX 76106-2749 To LESSEE: Attn: Tim Ward Alliance Air Partners, LTD. 2250 Alliance Blvd. Fort Worth, Texas 76177-4300 15. ASSIGNMENT AND SUBLETTING. 15.1. In General. Lessee shall have the right to sublease all or portions of the Premises as provided by and in accordance with Section 7 of this Lease. Otherwise, Lessee shall not assign, 10 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. 15.2. Conditions of Approved AssiLmments 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 charges. 16. 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. 17. 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. 18. 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 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, 11 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. 19. 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. 20. 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. 21. GOVERNMENTAL POWERS. It is understood and agreed that by execution of this Lease, Lessor does not waive or surrender any of its governmental powers. 22. 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. 23. 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 shall lie in state courts located in Tarrant County, Texas or the United States District Court for the 12 Northern District of Texas, Fort Worth Division. This Lease shall be construed in accordance with the laws of the State of Texas. 24. 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. 25. 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. 26. 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. 27. 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. 28. 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 not be amended unless agreed to in writing by both parties and approved by the City Council of Lessor. v� J� Ic �, l�Jv 13 IN WITNESS EREO , the parties hereto have executed this Lease in multiples, this CQJ, day of , 200 . CITY FO WO By: By: Marc Ott Nam T' othy D. Ward Assistant City Manager Title: President Alliance Air Services ATTEST: ATTESnnT:�/�/,A�,, �} By: By: City Secretary 1tuo.,vct a4AsiGaco aQd/nk"�OtXaAve- a"'I-a +- APPROVED AS TO FORM AND LEGALITY: By. Assistant City ttomey M&C: C-20848 Date: 07/19/2005 14 CIT OF FORT WOR By: Marc Ott Assistant City Manager Date: q' '�S - O—s STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared Marc Ott, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that the same was the act of City of Fort Worth, and that he executed the same as the act of 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 —� 2005. Notary Public in and for the State of Texas ^H TIE LAT ' MY COMMISSION EXPIRES July 26,2007 i n�r7 J�r� ^I1 By: Name: Timothi D. Ward Title: Presse Alliance Air Services Date: U64� H &CV57- 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 Timothy D. Ward 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 Alliance Air Partners, LTD. and that he executed the same as the act of Alliance Air Partners, LTD. for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of RA n itn 2005. o�P Pt K R KI LLMAN 2� �; NOTARY PUBLIC N * state of Texas Notary Public in and for the State of Texas •"�' oF� +fComm. Exp. 04-28-2047 16 i 1 EXHIBIT "A" 17 :S, .. •iy�+' I .y J •'t t t•.C .. 'S,f,<%fix d yrr ';,r.. . . , ': ,.-I.'I,..--''• 'sj6. } :,' .. .. L r'r''I.i•':y ,:L; Y•'aC h•. I . ': •.t'' �:�:•�..,11 J'L *4"k.Y7• �}�X:: ,�I,-C• ~.:'. ,'7 ,r.e^• . 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GIN 1 i` 1y { � s•rrr - x: - `lv� x ,.tom 1 - -`.J `` r Lt Page 1 of 2 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 7/19/2005 DATE: Tuesday, July 19, 2005 LOG NAME: 55ALLPROPERTY REFERENCE NO.: **C-20848 SUBJECT: Authorize Execution of an Unimproved Ground Lease Agreement with Alliance Air Partners, LTD., for 59,500 Square Feet of Unimproved Land at Fort Worth Alliance Airport RECOMMENDATION: It is recommended that the City Council authorize the City Manager to execute an Unimproved Ground Lease Agreement for 59,500 square feet of unimproved land with Alliance Air Partners, Ltd. at Fort Worth Alliance Airport. DISCUSSION: On August 8, 1995, (M&C C-14958) the City Council approved City Secretary Contract No. 21240 a ground tease between the City and Alliance Air Partners, Ltd. for 59,500 square feet of unimproved land at Fort Worth Alliance Airport. This agreement was for a five-year term effective August 15, 1995 and had a renewal option for one additional five-year term. On July 11, 2000, (M&C C-18116) the City Council approved the renewal option and authorized the City Manager to execute a renewal to the ground lease agreement with Alliance Air Partners, Ltd. for the additional five-year term. The term is set to expire in August of 2005. Alliance Air Partners, Ltd has proposed to execute a new Unimproved Ground Lease Agreement for a five- year term with one option to renew for a period of five years. The initial term of the lease will commence on August 15, 2005 and expire August 14, 2010, with one five-year option to renew. The revenue generated from this lease will be $0.32 per square foot per year, yielding $19,040 annually and $1,586.66 monthly. Based on the assumed start date of August 15, 2005, revenue generated for the remainder of the fiscal year will be $2,379.99. Rental rates shall be as described in the Schedule of Rates and Charges in effect at that time. Rental rates shall be subject to an increase on October 1 st of any given year to reflect the upward percentage change, if any, in the Consumer Price Index. All agreement terms will be in accordance with City and Aviation Department policies. Fort Worth Alliance Airport 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 http://www.cfwnet.org/council_packet/Reports/mc_print.asp 8/18/2005 Page 2 of 2 collection and deposit of funds due to the City under this Agreement. TO Fund/Account/Centers FROM Fund/Account/Centers PE40 491472 0551301 $2,379.99 Submitted for City Manager's Office by: Marc Ott (8476) Originating Department Head: Mike Feeley (871-5403) Additional Information Contact: Mike Feeley (871-5403) http://www.cfwnet.org/council_packet/Reports/mc_print.asp 8/18/2005