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RENEWAL AGREEMENT
CITY SECRETARY CONTRACT NO. 9353
FORT WORTH MEACHAM INTERNATIONAL AIRPORT
UNIMPROVED GROUND LEASE
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 and situated in portions of Tarrant and Denton
Counties, Texas, acting by and through Marc Ott, its duly authorized Assistant City Manager,
and MONTEX DRILLING COMPANY ("Lessee"), a Texas corporation.
Recitals
The following statements are true and correct and form the basis of this Agreement:
A. Lessor previously entered into City Secretary Contract ("CSC") No. 9353, an
Unimproved Ground Lease for lease site 10-5 at Fort Worth Meacham International Airport
("Airport") with Don E. Hansen ("Previous Lessee"). Pursuant to the lease, Previous Lessee
was given the right to store aircraft on the lease site at the Airport. CSC No. 9353 was
subsequently amended by CSC No. 16349, which amended, transferred and assigned all rights,
title and interest in CSC No. 9353 to Montex Drilling Company, respectively. CSC Nos. 9353
and 16349 shall hereafter collectively be referred to as (the "Lease"). The Lease commenced on
June 1, 1977 and expires on May 31, 2007, subject to renewal at Lessee's option for two (2)
consecutive terms of five (5) years each.
B. The Lease has not been previously renewed. In accordance with the provisions of
the Lease, Lessee has properly exercised its option to renew the Lease for two consecutive terms
of five (5) years each.
Agreement
1. The term of the Lease is hereby extended for two additional consecutive five (5) year
terms, with the first term commencing on June 1, 2007 and expiring on May 31, 2012 ("First
Renewal Term), and the second term commencing on June 1, 2012 and expiring on May 31,
2017 ("Second Renewal Term"), collectively each a Renewal term. Each Renewal term shall be
subject to such terms and conditions as Lessor may prescribe at the time of the Renewal.
2. The rental rate for the First Renewal Term shall be at an unimproved ground rate of $.011
per square feet. Lessor shall have the right but not the duty to adjust the ground rental rate for the
Second Renewal Term to conform to rentals then prevailing at the Airport for comparable
ground space; however any increase in such ��shall not exceed ten percent (10%) of the
previous renewal rate, whichever is less. i��h ;, .,____
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3. All other terms and conditions of the Lease shall remain in full force and effect.
IN WITNESS WHEREO,�', �,essor an es e� ave executed four (4) duplicate original
copies of this Agreement on this ��_ day of , 2007.
CITY OF FORT WORTH:
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By: �
Marc tt �"
Assistant City Manager
MONTEX DRILLING COMPANY:
By: ��
Charles B. oncrief
Vice President
ATTEST: ATTEST:
By: � By:
City Secretary
APPROVED AS TO FORM AND LEGALITY:
By:
Assistant Ci Attorney
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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 Charles B. Moncrief, known to me to be the person whose name is
subscribed to the foregoing instrument, and acicnowledged to me that the same was the act of
Montex Drilling Company and that he executed the same as the act of Montex Drilling Company
for the purposes and consideration therein expressed and in the capacity therein stated.
GIVEN LTNDER MY HAND AND SEAL OF OFFICE this �� s� day of / J�,QC �i ,
2007.
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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 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 �1�� ,
2007.
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Notary Pubhc in and for the State of Texas
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City of Fort Worth, Texas
Mayor and Council Communication
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COUNCIL ACTION: Approved on 3/6/2007
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DATE: Tuesday, March 06, 2007
LOG NAME: 55MONTEX RENEW
REFERENCE NO.: **C-21998
SUBJECT:
Authorize the Execution of an Extension for Two Additional Consecutive Five-Year Terms to City
Secretary Contract No. 9353, as Amended by City Secretary Contract No. 16349, an Unimproved
Ground Lease with Montex Drilling Company for Lease Site 10-S at Fort Worth Meacham
International Airport
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RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to execute an extension for two
additional consecutive five-year terms to City Secretary Contract (CSC) No. 9353, as amended by CSC No.
16349, an unimproved ground lease with Montex Drilling Company for lease site 10-S at Fort Worth
Meacham International Airport.
DISCUSSION:
On May 31, 1977, City Council authorized the execution of CSC No. 9353, a 30-year unimproved ground
lease with D.E. Hansen which was executed on June 1, 1977 and expires on May 31, 2007. Upon
expiration of the initial term, Mr. Hansen had the right of first refusal to execute an extension for two
additional consecutive five-year periods. This lease site included 51,765 square feet of land identified as
lease site 10-S at Fort Worth Meacham International Airport.
On April 12, 1988, (M&C C-10919) City Council authorized Mr. Hansen to transfer and assign all of his
rights, title and interest under CSC No. 9353 to Montex Drilling Company. Under CSC No. 16349, Montex
Drilling Company assumed all of the privileges and obligations associated with the original lease.
Staff has received a request from Montex Drilling Company to execute an extension for two additional five-
year terms in accordance with the lease agreement.
This lease site of 51,765 square feet of unimproved ground at the rate of $0.11 per square foot will generate
revenue of $5,694.15 per year, or $474.51 monthly.
The lease will provide for two five-year terms. The initial term of the lease will commence upon the date of
execution. Rental rates shall be subject to an increase on the fifth anniversary of the first term, in
accordance with the standard rates and charges, but shall not exceed 10% of the previous years rate,
whichever is less. All other terms and conditions will be in accordance with City and Aviation Department
policies.
The property is located in COUNCIL DISTRICT 2.
Lo�name: SSMONTEX RENEW Page 1 of 2
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that the Revenue Office of the Finance Department will be responsible for the
collection and deposit of funds due to the City under this agreement.
TO Fund/Account/Centers FROM Fund/Account/Centers
PE40 491352 0551101 5 694.15
Submitted for City Manager's Office bv:
Ori inatin Department Head:
Additional Information Contact:
Marc Ott (8476)
Mike Feeley (5403)
Mike Feeley (5403)
Lo�name: SSMONTEX RENEW Page 2 of 2