HomeMy WebLinkAboutContract 36523-R1CiT'Y SECRVARY
CONTRACT N0. 3 In g5 2'�--
RENEWAL AGREEMENT
CITY SECRETARY CONTRACT NO.36523
FORT WORTH SPINKS AIRPORT
HANGAR LEASE AGREEMENT
HANGAR 28
This RENEWAL AGREEMENT ("Lease") 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 HLP AVIATION, LLC ("Lessee"), acting by and through Harry
Phillips, its duly authorized agent.
Recitals
The following statements are true and correct and form the basis of this Agreement:
A. Lessor and Lessee entered into City Secretary Contract ("CSC") No. 36523, a
Hangar Lease Agreement for the lease and use of real property known as Hangar
28 ("Leased Premises") at Fort Worth Spinks Airport ("Airport").
B. CSC No. 36523 was executed for afive-year term with one (1) five (5) year
option to renew. The five-year term expired on September 30, 2012.
C. Lessee hereby requests to exercise the remaining option to renew. In accordance
with the provisions of the Lease, the Lessee has properly exercised its remaining
option to renew the Lease for a five (5) year period.
Agreement
1. The Lease is hereby renewed and extended for one term of five (5) years, commencing on
October 1, 2012 and expiring on September 30, 2017.
2. All other terms and conditions of the Lease shall remain in full force and effect.
Renewal Agreement
HLP Aviation, LLC -Hangar 28
Page 1 of 3
[Signature Pages to Follow]
12-21-17_
OFFICIAL RECOR®
CITY SECRETARY
% WORTH, TX
P03:41 IN
IN WITNESS WUERLOr the parties hereto have executed this Agreement in multiples
on this the day of - , 2012.
CITY OF FORT WORTH:
Fernando Costa
Assistant City Manager
Date: /Z/ZO Z/Z
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
O P I Yv� bjW 2012.
HiAflLttvGCR
MY Gomm SSI � � AES
`r February ,
N
APPROVED AS TO FORM
AND LEGALITY:
By:
(;harlene handers
Assistant City Attorney
M&C: L ` Zln U Z)
Approved: I Z � 1 a — IZ
Renewal Agreement
HLP Aviation, LLC -Hangar 28
Page 2 of 3
in and for
ATTEST:
By:
Mary J.
City Sep
State of�1'exas
r
o aC 4
0
�VFa M ii vi a VIA �.
LESSEE:
IILP AVIATION, LLC ATTEST:
By: By.
Harry Yhillips
Duly Authorized Agent
Date: I l—
STATE OF TEXAS
COUNTY OF .ut'1 §
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 persons whose name is
subscribed to the foregoing instrument, and acknowledged to me that the same was the act of HLP
Aviation, LLC and that he executed the same as the act of HLP Aviation, LLC for the purposes
and consideration therein expressed and in the capacity therein stated.
UNDER MY HAND AND SEAL OF OFFICE this day
Vaf e� , 2012.
MY COMMISSION EXPIRES Notary Public in and for
August 14, 2013
Renewal Agreement
HLP Aviation, LLC -Hangar 28
Page 3 of 3
of Texas
OFFICIAL RECORD
CITY SECRETARY
City of Fort Worth, Texas
COUNCIL ACTIUM Approved on 12/18/2012
DATE: Tuesday, December 18, 2012
LOG NAME: 55FWS HLPAVIATION RENEW
REFERENCE NO.: **C-26023
SUBJECT:
Authorize Execution of Five -Year Options to Renew Hangar Lease Agreements with HLP Aviation, L.L.C.,
for Lease Sites 28 and 32 at Fort Worth Spinks Airport (COUNCIL DISTRICT 8)
RECOMMENDATION:
It is recommended that the City Council authorize the execution of five-year options to renew Hangar
Lease Agreements with HLP Aviation, L.L.C., for lease sites 28 and 32 at Fort Worth Spinks Airport,
DISCUSSION:
On January 8, 2008, (M&C C-22608) the City Council authorized the execution of City Secretary Contract
(CSC) No. 36523, a Hangar Lease Agreement, with HLP Aviation, L.L.C. (HLP), for Hangar Site 28 at Fort
Worth Spinks Airport (Spinks). Hangar Site 28 consists of 2,900 square feet of unimproved ground space
and a 5,100 square foot hangar. CSC No. 36523 contained a five-year term with one five-year option to
r
On January 8, 2008, (M&C C-22609) the City Council also authorized the execution of CSC No. 36524, a
Hangar Lease Agreement, with HLP for Hangar Site 32 at Spinks. Hangar Site 32 consists of 2,392.50
square feet of improved ground space, 8,512.50 square feet of unimproved ground space and a 9,240
square foot hangar. CSC No. 36524 contained a five-year term with one five-year option to renew.
The original terms of both leases expired September 30, 2012. The lessee, HLP Aviation, L.L.C., timely
exercised its options to renew each of these leases. The renewal terms will be effective October 1, 2012,
to coincide with the established Schedule of Rates and Charges (Schedule), and end September 30,
2017.
In accordance with the Schedule, Hangar Site 28, at a hangar rate of $1.2608 per square foot and an
unimproved ground rate of $0.1816 per square foot, will generate revenue of approximately $6,956.72
annually or $579.73 monthly. Hangar Site 32, at a hangar rate of $1.2608 per square foot, an unimproved
ground rate of $0.1816 per square foot, and an improved ground rate of $0.20 per square foot will
generate revenue of approximately $13,674.16 or $1,139.51 monthly.
Rental rates shall be subject to an increase on October 1st 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 8.
FISCAL INFORMATION / CERTIFICATION :
The Financial Management Services Director certifies that the Aviation Department is responsible for the
Logname: SSFWS HLPAVIATION RENEW Page 1 of 2
collection and deposit of funds due to the City.
FUND CENTERS:
TO Fund/Account/Centers
PE40 491052 0551201
PE40 491312 0551201
PE40 491352 0551201
CERTIFICATIONS:
Submitted for City Manager's Office by:
Originating Department Head:
Additional Information Contact:
$18,079.87
2 072.51
FROM Fund/AccountCemers
Fernando Costa (6122)
Bill Welstead (5402)
Jonnie Huitt (5409)
ATTACHMENTS
1. 55FWS HLPAVIATION RENEW Exhibit.pdf (Public)
Logname: SSFWS HLPAVIATION RENEW Page 2 of 2
CITY SECRETARY fQ&
C®NTRACT NO.
FORT WORTH SPIN" AIRPORT
HANGAR LEASE AGREEMENT
(TERN)
This HANGAR SPACE 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 County, Texas acting by and through Marc Ott, its duly authorized Assistant
City Manager, and HLP Aviation, LLC ("Lessee"), acting by and through Harry Phillips its duly
authorized agent.
In consideration of the mutual covenants, promises and obligations contained herein, the
parties agree as follows:
1. PROPERTY LEASED.
Lessor demises and leases to Lessee 5,100 square feet of conventional hangar space
(Hangar 28) as shown in Exhibit "A", and 2,900 square feet of unimproved ground space as
shown in Exhibit "A" at Fort Worth Spinks Airport ("Airport") in Fort Worth, Tarrant County,
Texas. Hereinafter refered to as ("Premises').
2. TERM OF LEASE.
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, 2012, unless terminated earlier in accordance with
this Lease. If Lessee complies with all terms and conditions of the Lease, Lessee shall have one
option to renew this Lease for an additional five year term ("Renewal Term"). Lessee shall give
Lessor not more than 180 and not less than 90 days written notice of its intent to renew. If Lessee
fails to exercise its option to renew, this Lease shall automatically terminate upon its expiration.
The rental rates for the 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 time of
renewal.
3. RENT.
3.1. Amount.
During the Initial Term of this Lease, Lessee hereby promises and agrees to pay
Lessor, as annual rent for the Premises, One dollar and Thirteen Cents ($1.13) per square
foot of conventional hangar space, and Sixteen Cents ($0.16) per square foot for
unimproved land, for a total annual sum of Six Thousand Two Hundred Twenty Seven
Dollars ($6,227.00), payable in equal monthly installments of Five
Dollars and Ninety Two Cents ($518.92). The rental rates under this fn
ALP Aviation, LLCSpinks Airport Hangar 28 Lease
Page 1 of 13
Lessor's published Schedule of Rates and Charges. In the event that this lease commences
on a day other than the first (1 st) 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. Rental
rates are subject to increase on October 1st of any given year, during the Initial Term or
the Renewal Term, to reflect any upward changes in the Consumer Price Index.
3.2. Payment Dates and Late Fees.
All monthly rent payments under this Lease 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 Aviation Department as set forth in Section 18. Rent shall be
considered past due if Lessor has not received full payment after the (loth) day of the
month for which payment is due. Lessor will assess 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.
4.1. Maintenance and Repairs by Lessor.
Lessor agrees to perform minor repairs and maintenance on a timely basis
as required by the ordinary use of the Premises under the terms of this Lease and which
are not caused by any violation thereof by Lessee. Lessor shall have the right and
privilege, through its officers, agents, servants or employees to inspect the Premises at
any time. If Lessor determines that Lessee is responsible for any maintenance or repairs
required on the Premises, it shall notify Lessee in writing. Lessee agrees to undertake
such maintenance or repair work within thirty (30) calendar days of receipt of notice. If
Lessee fails to undertake the maintenance or repairs recommended within this time,
Lessor may, in its discretion, perform the necessary maintenance or repairs on behalf of
Lessee. In this event, Lessee will reimburse Lessor for the cost of the maintenance or
repairs, and payment will be due on the date of Lessee's next monthly rental payment
following completion of the repairs.
4.2. 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 shall not allow any holes to be drilled or made in the brick,
plaster or cement work. Lessee will not pile or store boxes, cartons, barrels or other
similar items in a manner that is unsafe or unsightly. Upon termination of this Lease,
Lessee agrees to return the Premises to Lessor in the same condition as originally
received, subject to ordinary wear and tear consistent with normal use over time. Lessee
is responsible for all damages caused by the negligence or misconduct of Lessee, its
agents, servants, employees, contractors, subcontractors, patrons, licensees, invitees
or trespassers.
2
4.3. Inspection.
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).
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 shall provide Lessee with
advance notice of inspection when reasonable under the circumstances.
5. ACCEPTANCE OF PRENII5ES.
5.1. Asbestos Abatement Activities.
Lessee acknowledges the existence of asbestos -containing. material on the
Premises. After investigation by Lessor, Lessor represents that, to the best of its
knowledge, asbestos -containing materials exist on the Premises to the extent identified in
Lessor's Level H Asbestos Assessment Report dated October 12, 1992, a public document
on file in Lessor's City Secretary's Office and incorporated herein by reference for all
purposes. Lessee covenants and agrees to comply with all federal, state and local laws
and regulations, now in existence or promulgated in the future, which pertain to asbestos
containing materials. Lessee covenants and agrees to cooperate fully with any asbestos
abatement activity plan or asbestos operations and maintenance plan set forth by Lessor.
Lessee further covenants and agrees to notify and obtain written approval from Lessor
prior to Lessee's undertaking of any repairs, renovations, alterations or improvements to
the Premises or of any other activity, which might disturb asbestos -containing materials.
Lessee agrees that it shall be solely responsible for all expenses of such activities. Lessor
retains the night 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.
5.2. Lessee's Acceptance of Premises.
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
3
condition of the Premises. Lessee accepts the Premises in its present condition as
satisfactory for all purposes set forth in this Lease.
6. CONSTRUCTION AND IMPROVEMENTS.
Lessee may not undertake or allow any party to undertake any kind of alteration, erection,
improvement or other construction work on or to the Premises unless it first requests and
receives in writing approval from the Director of Airport Systems or authorized representative.
All such approved construction work on and improvements to the Premises shall comply fully
with the Americans with Disabilities Act of 1990, as amended.
7. PARKING.
Lessee shall have the right to use the designated public parking areas and, to the extent
available and in accordance with policies established by the Director of Airport Systems or
authorized representative.
8. USE OF PREMISES.
Lessee agrees to use the Premises exclusively for aviation or aviation -related
commercial activities. It is specifically agreed and stipulated that the following concessions are
prohibited under this Lease, unless specifically approved 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, (v) alcoholic beverage
sales; and (vi) aviation -related sales of pilot supplies.
9. 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 in the Terminal
indicating Lessee's business. Such signs, however, must be in keeping with the size, color,
location and manner of display of other signs throughout the Terminal. In addition, Lessee may,
at its own expense, make, install and maintain a sign outside the Terminal on Lessor's property
subject to prior written approval by the Director of Airport Systems or authorized representative
as to the sign's placement, appearance, construction, and conformity with applicable City Code
restrictions.
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 resulting
From the installation, maintenance or removal of any such sign. Lessee also agrees to remove any
C�
sign at its own expense immediately upon receipt of instructions for such removal from the
Director of Airport Systems or authorized representative.
10. RIGHTS AND RESERVATIONS OF LESSOR
Lessor hereby retains the following rights and reservations:
10.1. Ali 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.
10.2. 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.
10.3. Lessor reserves the night 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.
10.4. 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.
During any war or national emergency, Lessor shall have the night 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.
10.6. 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. INSURANCE.
11.1. Tunes 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 herein, naming the City of Fort Worth as an additional
insured and covering all public risks related to the leasing, use, occupancy, maintenance,
existence or location of the Premises. Lessee shall obtain the required insurance in
accordance with Exhibit `B", the "City of Fort Worth Aviation Insurance Requirements"
attached hereto and made part of this Lease for all purposes.
In addition, Lessee shall be responsible for all insurance to any approved
construction, improvements, modifications or renovations on or to the Premises and for
personal property of Lessee or in Lessee's care, custody or control.
11.2. Adjustments to Required Coverage and Limits=
Insurance requirements, including additional types and limits 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.
11.3. Certificates.
As a condition precedent to the effectiveness of this Lease, Lessee shall furnish
Lessor with a certificate of insurance signed by the underwriter 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
IV idence that it has maintained such coverage in full force and effect.
11.4. Additional Requirements.
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, nonrenewal or amendment, shall be made without thirty (30) days' prior
written notice to Lessor.
12. 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.
13. INDEMNIFICATION.
I,F.SSFF. HF.RF.BYASSUMESAI,I, LIABILITYAND RF,SPONSII3ILITYFOR PROPERTY
LOSS, PROPERTY DAMAGE AND/OR PERSONAL INJURY OF ANY KIND, INCLUDING
DEATH, TO ANYAND 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
THF. 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 ANYRESULTING 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
CA USED BY THE NEGLIGENT ACTS OR OMISSIONS OR INTENTIONAL MISCONDUCT OF
LESSOR..
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 ANYAND 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 LF,SSOR.
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
7
OFFICERS, AGENTS, SERVANTS, EMPLOYEES, CONTRACTORS, SUBCONTRACTORS,
LICENSEES, INVITEES OR PATRONS, AND WHICH MAYBE 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 OFLESSOR..
I4. WAIVER OF CI][ARITABLE IMIVIUNITY 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.
15. TERMINATION.
Upon termination of this Lease, all rights, powers and privileges granted to Lessee
hereunder shall cease and Lessee shall immediately vacate the Premises. Lessee agrees that it
will return the Premises and all appurtenances and improvements thereon in good order and
repair and in the same condition as existed at the time this Lease was entered into, subject to
ordinary wear and tear. Lessor shall have the immediate right to take full possession of the
Premises and to remove any and all parties remaining on any part of the Premises without further
legal process and without being liable for trespass or any other claim. Lessor shall also have the
right to remove any and all fixtures or equipment that may be found within or upon the Premises
without being liable therefor. 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 the Lease or any act incident to Lessor's assertion of its right to terminate.
16. 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:
City of Fort Worth
Aviation Department
4201 N Main St, Ste 200
Fort Worth, Texas 76106
For All OthQr Matters:
Aviation Department
Meacham International Airport
4201 North Main, Suite 200
Fort Worth, Texas 76106-2736
0
To LESSEE:
HLP Aviation, LLC
5619 Redwine Court
Fort Worth, TX 76140
17. ASSIGNMENT AND SUBLETTING.
Lessee shall not assign, sell, convey, sublet or transfer any of its rights, privileges, duties
or interests granted by this Lease without the advance written consent of Lessor. Any such
transaction attempted by Lessee without prior written consent by Lessor shall be null and void. If
Lessor consents to any such transaction, the respective assignee or sublessee shall consent to
comply in Writing with all terms and conditions set forth in this Lease the same as if that party
had originally executed this Lease.
18. 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.
19. 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.
20. 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.
23. 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 fiirnish 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.
24. LICENSES AND PERMITS.
Lessee shall, at its sole expense, obtain and
necessary for the operation of its business at the Airport.
keep in effect all Licenses and permits
It is understood and agreed that by execution of this Lease, the City of Fort Worth does
not waive or surrender any of its governmental powers.
26. 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.
10
27. VENUE.
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 in Tarrant County, Texas, or 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.
28. ATTORNEYS' FEES.
In the event there should be a breach or default under any provision of this Lease and
either parry 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 each party shall be responsible for its own attorneys'
fees.
29. 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.
30. 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.
31. 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.
32. 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.
11
IN WITNESS WH + + OF, the arties hereto have executed this Agreement in multiples on this
the a day of
CITY OF FORT WORTH:
By:
Marc Ott
Assistant City Manager
Date: j— LOL
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
200. 5 -.
MY C)OMMIM"ON EXPIRES
APPROVED AS TO FORM
AND LF,GALIT I
Maleshia B. Farmer
Assistant City Attorney
Contract Authorization:
Date Approved: $
I►ti
12
By:
day
State of Texas
City Secretary
�1 J21\f�fI;If7II]]b��V i IR,\ SGY
fog P-
HLP AVIATION, LLC
By:
Nam .Harry MAPS
Title: Duly authorized agent
Date: I
STATE OF TEXAS §
COUNTY OF §
ATTESTS
sy:
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 the act of HLP
Aviation, LLC and that s/he executed the same as the act of HLP Aviation, LLC for the purposes
and consideration therein expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this ..3 � day
v_ , 200W�.
Notary Public in and for the State of Texas
13
Exhibit "B"
City Or Fort Worth
Aviation Insurance Requirements
Category of Tenant Wor
Operations
Property Insurance
General Liability
Auto
Environmental
Impairment
Aircraft Liability
Flangarkeepers
Liability
FBOs
Yes
$ 3,000,000.00
$ 190000000000
$ 1,00%000.00
NIA
$ 31000,000400
Flight Training
*
$ 17000,000.00
$ IVOOOS000400
No
Small:IM Large:
5M
No
Air Taxi
*
$ 19000,000.00
$ 11000,000900
No
Small:1M Large:
5M
No
Specialized Com. Flight
Serv.
$ 1,000,000.00
$ 10000,000000
No
Small: 1M Large:
5M
No
Aerial Applications
$ 130OU00.0o
$ 1,000,000.00
$ 1,000,000.00
Small:IM Large:
5M
No
Aircraft Sales
*
$ 120003000,00
$ 11000,000,00
No
Small:1M Large:
5M
$ 11000,000400
Aircraft Rental
$ 12000,000.00
$ 11000,000900
No
Small:IM Large:
5M
$ 11000,000200
Airframe or Power Plant
Repair
*
$ 1,000,000.00
$ 19000,000.00
No
No
$ 1,000,000.00
Radio, Instrument or
Propeller Repair
$ 17000,000.00
$ 1,000,000.00
No
No
$ 1,0002000.00
Multiple Services
$ 11000,000400
$ 1,000,000.00
No
As Applicable
As Applicable
Flying Clubs
*
$ 11000,000.0o
$ 1,000,000.00
No
Small: iM Large:
5M
N/A
Commercial Tenant
$ 1,000,000.00
$ 1,000,000.00
No
As Applicable
No
Commercial Tenant
Sublessee
No
$ 500,000.00
$ 5002000.00
No
As Applicable
No
Mo. - Mo. Airport Tenant;
sm. premises area,
infrequent access by
others (no aircraft)
No
$ 300,000.0O
No
No
No
No
Hangar Tenant
(private sm. aircraft)
No
No
No
No
$ 300,000
No
Fuel Facilities: Trucks
N/A
N/A
$ 19000,000,00
$ 110003000000
No
No
Fuel Facilities: Tank Farm
Yes
$ 190002000.00
$ 1,000,000.00
$ 1,000,000.o0
No
No
Concessionaire:
Restaurant
$ 1,0000000.00
$ 1,000,000.00
No
No
No
Concessionaire:
Rent -a -car
No
$ 1,000,000.00
$ 1,000,000.00 1
No
No
No
Concessionaire:
Retail Shop
No
$ 500,000.00
No
No
No
No
* Depends on the terms of the lease agreement
Property Insurance requirement depends on the lease agreement. Coverage should be replacement cost basis
Liabilitycoverage's are to include products and completed operation. The policy should be written on an occurrence basis
Hangarkeepers Liability is maintained according to typical exposure
aviationinsreg2D01
City ®f F®�i i/1i®r�fh, Texas
Mayor and Council Communication
DATE: Tuesday, January 08, 2008
LOG NAME: 55HLP HGR 28
REFERENCE NO.: **C-22608
SUBJECT:
Authorize Execution of a Hangar Lease Agreement with HLP Aviation, LLC, for City -Owned Hangar
28 at Fort Worth Spinks Airport
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to execute an aircraft Hangar Lease
Agreement between HLP Aviation, LLC, and the City of Fort Worth for City -owned Hangar 28 at Fort Worth
Spinks Airport.
DISCUSSION:
Mr. Harry Phillips of HLP Aviation, LLC, proposes to lease Hangar 28 on the north east side of Spinks
Airport exclusively for the storage of aircraft or aviation -related commercial activities.
The total square footage and rates for the lease are listed below.
Square Feet Rate
Hangar Space 5,100 Square Feet $1.13 Per Square Foot, Annually
Unimproved Ground 2,900 Square Feet $0.16 Per Square Foot, Annually
Total revenue generated from this lease will be $518.92 per month, or $6,227 annually. These rates are
in accordance with the Aviation Department's current Schedule of Rates and Charges.
The hangar lease will be for afive-year term with one five-year option to renew. The initial term of the lease
will commence upon the execution of the hangar lease agreement. The lease rate shall be subject to
increase on October 1st of any given year to reflect any upward changes in the Consumer Price Index
(CPI). All terms and conditions of the lease agreement will be in accordance with City and Aviation
Department policies.
The property is located in COUNCIL DISTRICT 8.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that the Revenue Section of the Finance Department is responsible for the
collection and deposit of funds due to the City under thi s Agreement.
Logname: SSHLP HGR 28 Page 1 of 2
TO Fund/Account/Centers FROM Fund/Account/Centers
PE40 491312 0551201 6 227.00
Submitted for City Manager's Office b� Marc A. Ott (8476)
Originating Department Head: Kent Penney (5403)
Additional Information Contact: Angie Highland (5402)
Logname: SSHLP HGR 28 Page 2 of 2