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Home My WebLink AboutContract 32239-R1 CITY SECRETARY CONTRACT NO,, — RENEWAL AGREEMENT CITY SECRETARY CONTRACT NO. 32239 FORT WORTH ALLIANCE AIRPORT UNIMPROVED GROUND LEASE AGREEEMENT This RENEWAL AGREEMENT ("Agreement") 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, acting by and through Fernando Costa, its duly authorized Assistant City Manager, and FBO PARTNERS, LTD. ("Lessee"), a Texas limited partnership, acting by and through Timothy D. Ward, the duly authorized president of its general partner, Alliance Air Services, Inc., a Texas corporation. Recitals The following statements are true and correct and form the basis of this Agreement: A. On or about August 25, 2005, Lessor and Alliance Air Partners, LTD. (now known as Alliance Aviation Investors, L.P. ("Original Lessee") entered into City Secretary Contract ("CSC") No. 32239 ("Lease"), a lease of 59,500 square feet of unimproved land ("Leased Premises") at Fort Worth Alliance Airport("Airport"). B. On or about July 23, 2010, Original Lessee assigned the Lease to Lessee. C. On � �-Q �pQ,r , 2010, Lessor consented to the assignment. D. The initial term of the Lease expires August 15, 2010. The Lease provides that upon expiration of the initial term, Lessee shall have a right of first refusal to lease the Premises for one (1) additional term of five years (each a"Renewal Term"). E. In accordance with the provisions of the Lease, Lessee has properly exercised its option to renew the Lease for a final term of five (5) years. Agreement 1. The Lease is hereby renewed and extended for a final term of five (5) years, commencing on August 16, 2010 and expiring on August 15, 2015. 2. The Rental Rate, on the effective date of the Renewal Term, of$0.32 per square foot, complies with the Schedule of Rates and Charges as currently published by the City as to improved ground space at the Airport. Lessee shall pay Lessor annual rent in the amount of $19,040.00, which will be payable monthly in the amount of$1,586.67. 3. Rent Adjustments will occur on October 1, 2010, and on October 11" of each year thereafter during the Renewal Term. Lessee's rental rate shall be subject to increse by Lessor to Renewal Agreement OFFICIAL RECORD Between City of Fort Worth and CITY SECRETARY FBO Partners,LTD. Page 1 of 4 FT.WORTH,TX 0 9-0 7-10 AO^ :53 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 types of property that comprise the Premises. 4. All other terms and conditions of the Lease shall remain in full force and effect. [Signature Pages Immediately Follow] OFFICIAL RECORD CITY SECRETARY FT:WORTH.TX Renewal Agreement Between City of Fort Worth and FBO Partners,LTD. Page 2 of 4 IN WITNESS WHEREOF, the pa pies hereto have executed this Agreement in multiples on this the�1' day of_��.e�r��_� r- ,2010. CITY OF FORT WORTH: By:_ Fernando Costa Assistant City Manager Date:_ 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 Fernando Costa, 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 52010. .h EVONIA DANIELS \ MY COMMISSION EXPIRES ` July 10,2013 otary Public in and for he State of Texas APPROVED AS TO FORM ATTEST: AND LEGALITY: By:Ch B �M Y• Charlene Sanders Marty Hendrix Assistant City Attorney A141ity Secretary aQO Date: JAI I XO ¢ tea 6%0004 oO Aly i4L OFFICIAL.RECORD Renewal Agreement CITY SECRETARY Between City of Fort Worth and FBO Partners,LTD. FT.WORTH,TX Page 3 of 4 FBO PARTNERS, LTD.: FBO PARTNERS,LTD., a Texas limited partnership By: Alliance Air Services, Inc., a Texas corporation, its general partner By: Name: Timothy . Ward Title: Preside Date: STATE OF TEXAS § COUNTY OF TARRANT § This instrument was acknowledged before me on , , 2010, by Timothy D. Ward, President of Alliance Air Services, Inc., a Te as Mporation, on behalf of said corporation, in its capacity as general partner of FBO Partners, Ltd., a Texas limited partnership, on behalf of said limited partnership. ►...f. CHRISTINA CAREY Notary Public, State of Texas Notary Public,State of Texas My Commission Expires August 03,2011 My Commis ion Expires OFFICIAL RECORD CITY SECRETARY FT.WORTH,TX Renewal Agreement Between City of Fort Worth and FBO Partners,LTD. Page 4 of 4 Page 1 of 2 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 8/24/2010 DATE: Tuesday, August 24, 2010 REFERENCE NO.: **C-24412 LOG NAME: 55AFW FBO PARTNERS SUBJECT: Authorize the Execution of a Consent to Assignment of City Secretary Contract No. 32239, at Fort Worth Alliance Airport, by Alliance Aviation Investors, L.P., f/k/a Alliance Air Partners, Ltd. to FBO Partners Ltd. and Authorize the Execution of a Five Year Lease Renewal of City Secretary Contract No. 32239 with FBO Partners, Ltd. for 59,500 Square Feet of Land at Fort Worth Alliance Airport(COUNCIL DISTRICT 2) RECOMMENDATION: It is recommended that the City Council authorize the City Manager to execute: 1. A written consent to assignment by Alliance Aviation Investors, L.P., f/k/a Alliance Air Partners, Ltd. of all leasehold interest in City Secretary Contract No. 32239 at Fort Worth Alliance Airport, to FBO Partners, Ltd.; and 2. A five-year lease renewal of City Secretary Contract No. 32239 with FBO Partners, Ltd.for 59,500 square feet of land at Fort Worth Alliance Airport. DISCUSSION: On July 19, 2005, (M&C C-20848)the City Council approved City Secretary Contract No. 32239, a five year unimproved ground lease for 59,500 square feet of land with Alliance Air Partners, Ltd., at Fort Worth Alliance Airport. On July 23, 2010, Mr. Timothy D. Ward, of Alliance Aviation Investors, L.P., f/k/a Alliance Air Partners, Ltd., assigned all rights, title and interest in the Lease to FBO Partners Ltd. Upon City Council approval, FBO Partners Ltd. will assume oversight of all leasehold interests and obligations associated with the Lease. City staff has no objection to this request. Staff has received a request from Mr. Ward to execute a five year lease renewal option in accordance with the lease agreement. This is the only renewal option available with City Secretary Contract No. 32239. This renewal will commence August 16, 2010 and expire August 15, 2015. In accordance with the current Schedule of Rates and Charges, this lease site of 59,500 square feet will lease for$0.32 per square foot and will generate revenue of$19,040.00 per year, or$1,586.67 monthly. Rental rates shall be subject to an increase on October 1, of any given year to reflect the upward percentage change, if any, in the Consumer Price Index for the period since the last adjustment. All agreement terms will be in accordance with City and Aviation Department policies. The property is located in COUNCIL DISTRICT 2. FISCAL INFORMATION /CERTIFICATION: The Financial Management Services Director certifies that the Aviation Department is responsible for the collection and deposit of funds due to the City. .- ........ ........ ......... FUND CENTERS: http://apps.cfwnet.org/ecouncil/printmc.asp?id=13961&print=true&DocType=Print 8/25/2010 Page 2 of 2 TO Fund/Account/Centers FROM Fund/Account/Centers PE40 491052 0551301 $19,040.00 CERTIFICATIONS: Submitted for City Manager's Office by- Fernando Costa (6122) Originating Department Head: Kent Penney (5403) Additional Information Contact: Jonnie Huitt (5409) ATTACHMENTS No attachments found. http://apps.cfwnet.org/ecouncil/printmc.asp?id=13961&print=true&DocType=Print 8/25/2010