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HomeMy WebLinkAboutContract 36543 (2)R AMENDMENT TO LICENSE AND OPTION AGREEMENT This First Amendment to License and Option Agreement ("First Amendment") is entered into by and between the City of Fort Worth, a home -rule municipal corporation ("City"), and the 11211 Katy Freeway, L.P., a Texas limited partnership, ("Licensee"). RECITALS A. Upon Licensee's purchase of the building located at 1500 North Main, Fort Worth, Texas ("Building"), City and Licensee entered into a 99 year License and Option Agreement (City Secretary Contract Number 33089) ("License Agreement") on January 18, 2006 to allow Licensee additional parking for its tenants on the adjacent City -owned property on the Remainder Parking Lot (as defined in the License Agreement), B. Licensee has entered into a lease agreement ("Lease") with United Way of Metropolitan Tarrant County, a Texas Non -Profit Corporation ("United Way") to occupy office space in the Building. C. As a condition of United Way entering into the Lease, United Way required that the License Agreement be amended to allow United Way to enter into a Subordinate License Agreement with City to also use the Remainder Parking Lot following the occurrence of certain conditions. D. Licensee is agreeable to amend the License Agreement in order to lease office space to United Way and City is also agreeable to amend the License Agreement in order that the Building can be further occupied and leased according to City's Vision, as defined in the License Agreement. �!f .� � flu 1 �1►1L 11 In consideration of the mutual covenants contained in this First Amendment, City and Licensee agree to amend Paragraph 4 of the License Agreement to read as follows: "4. Non -Exclusivity. The License and other rights and benefits herein created are exclusive, subject to the following reservations, during the term of the License: (1) the use of the Remainder Parking Lot by members of the public to park for free after regular business hours in order to attend scheduled events at the Rose Theater, located near the Remainder Parking Lot, or to patronize businesses located within a two (2) block radius of the Remainder Parking Lot and (2) a "Subordinate License Agreement" between the City and United Way of Metropolitan Tarrant County, a Texas non-profit corporation ("United Way"). The terms of the Subordinate License Agreement, which are set forth below, will allow United Way to use the office portion of the parking lot, as shown on Exhibit licit, attached hereto for all purposes, for its employees, patrons and invitees in connection with its lease of office space from Licensee at the Mercado Property ("United Way Lease"). The terms of the Subordinate License Agreement are as follows: (1) United Way shall not have exclusive use of the Remainder Parking Lot or the office portion thereof; (2) the Subordinate License Agreement shall be subordinate and subject to this License (provided, however, the Subordinate License Agreement would not terminate upon a termination of this License if such termination occurs during the term of the United Way Lease, but rather would continue despite such termination); (3) the Subordinate icy n Agreement will be in effect only so long as it leases office space at the Mercado P and shall be nontransferable, except in the event of a sublease by United W y i2 ,���p� Licensee's consent (or the consent of the then current Landlord under the Unit dMJ L u�• U First Amendment to the License and Option Agreement 01-24-08 P01:%1 1N Lease), and shall terminate upon the expiration or termination of the United Way Lease; (4) the Subordinate License Agreement will terminate if United Way violates the Subordinate License Agreement, subject to the opportunity to cure such violation; (5) United Way shall pay to the City as consideration a payment of $10.00 per annum; and (6) United Way will not have an option to purchase all or any portion of the Remainder Parking Lot." So long as the United Way Lease and the License Agreement are in effect, the tet ms and conditions in the United Way Lease regarding the use by United Way of the Remainder Parking Lot shall control over the terms of the Subordinate License Agreement. Except as amended by this First Amendment, all of the terms and conditions of the License Agreement are natified and remain in full force and effect. This Amendment shall be effective as of alnipfu Q�L� , 2009. CITY: CITY OF FORT WORTH Dale A. Fisseler Assistant City Manager ATTEST: LICESEE: l� U — Contract Authorization Date 11211 KATY FREEWAY, L.P., a Texas limited partnership By: 11211 Katy Property, Inc., its general partner And S al President First Amendment to the License and Option Agreement APPROVED AS TO FORM stant City Atto�hey Keg /r�Igy STATE OF TEXAS § COUNTY OF TARRANT N This instrument was acknowledged before me Assistant City Manager of the City of Fort corporation. A ANA L. BRISENO Notary Public, State of Texas My Commission Expiros March 07, 2011 STATE OF TEXAS COUNTY OF � 5 on W Dal orth, munici 1 corporation, on Notary Public, State of Texas �i Higgins for e A. Fisseler, behalf of said This instrument was acknowledged before me on ?� C�' by Andrew Segal, President of 11211 Katy Freeway, Inc., general partner of 11211 Katy Freeway, L.P., a Texas limited partnership, on behalf of said partnership. CINDY BARRERA Notary Public, State of Texas My Commission Expires .rune 12, 2010 Notary Public, First Amendment to the License and Option Agreement of Texas EXHIBIT "C" Office Portion of the Parking Lot [see attached] First Amendment to the License and Option Agreement Page 1 of 2 City of Forf Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 9/11/2007 DATE: Tuesday, September 11, 2007 LOG NAME: 17MERCADO REFERENCE NO.: L-14396 SUBJECT: Authorization to Amend the License and Option Agreement with 11211 Katy Freeway, L.P., for Use of the Parking Lot Behind 1500 North Main to Allow a Subordinate Parking License Agreement with United Way of Metropolitan Tarrant County and Authorization to Execute a Subordinate Parking License Agreement with United Way of Metropolitan Tarrant County to Use the Parking Lot Behind 1500 North Main RECOMMENDATION: It is recommended that the City Council: 1. Authorize the City Manager to execute an amendment to the License and Option Agreement with 11211 Katy Freeway, L.P., (City Secretary Contract No 33089) to allow a Subordinate Parking License Agreement with United Way of Metropolitan Tarrant County; and 2. Authorize the City Manager to execute a Subordinate Parking License Agreement with United Way of Metropolitan Tarrant County to use the designated office parking area behind the building located at 1500 North Main DISCUSSION: On January 10, 2006, the City of Fort Worth sold the Fort Worth Mercado located at 1500 North Main to 11211 Katy Freeway, L.P. (M&C L-14158). As part of the sale, the city entered in a License and Option Agreement (License Agreement) with 11211 Katy Freeway L.P., (Katy Freeway) for the remainder of the parking lot located behind 1500 North Main. The License Agreement provides that the parking lot can be used by the public after hours to attend events at the Rose Theater or patronize business located within a two block radius of the parking lot. Katy Freeway has negotiated a lease with United Way of Metropolitan Tarrant County (United Way) for a portion of the office space in the Fort Worth Mercado Building. Katy Freeway and United Way have requested that the City execute a Subordinate Parking License Agreement with United Way for the designated office parking area. The terms of the Subordinate Parking License Agreement are as follows: 1. United Way would not have exclusive use of the parking lot; 2. United Way's License Agreement would be subordinate and subject to the License Agreement with 11211 Katy Freeway (provided however, United Way's License Agreement would not terminate upon a termination of the License Agreement between the City and 11211 Katy Freeway if such termination occurs during the term of United Way's Lease, but rather would continue despite such termination); 3. The License Agreement with United Way would be in effect so long as it leases office space at 1500 North Main, and would be nontransferable, except in the event of a sublease by United Way with 11211 Katy Freeways consent (or the consent of the then current Landlord under the Lease) and: would terrriinate upon the expiration or termination of the office space lease; ��A��`ti ����(II�?j�('I%i���°1/\^`j'� http : //www. cfwnet. org/councils acket/Rep orts/mc�rint. asp Page 2 of 2 4. The Subordinate License Agreement would terminate if United Way violated the Subordinate License Agreement between the City and United Way, subject to the opportunity to cure such violation; 5. Require a payment of $10.00 per annum by the United Way to the City of Fort Worth as consideration; and 6. The Subordinate License Agreement will not have an option to purchase all or any portion of the parking lot Staff recommends amending the License and Option Agreement with Katy Freeway to allow the Subordinate Parking License Agreement with United Way and executing a Subordinate Parking License Agreement with United Way. The Fort Worth Mercado and parking lot is located in COUNCIL DISTRICT 2. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that the Economic responsible for collecting and depositing the funds. TO Fund/Account/Centers GG01 481306 0171000 100.00 Submitted for City Manager's Office b� Originating Department Head: Additional Information Contact: and Community Development Department will be FROM Fund/Account/Centers Dale Fisseler (6140) Tom Higgins (6192) Cynthia Garcia (8187) +N :a,—G, �� �F�a �'�� � su1 � ��G u http://www.cfwnet.org/council�acket/Reports/mc�rint.asp 1/25/2008