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HomeMy WebLinkAboutContract 50636-CA1 CITY SECRETARY CONTRACT NO._5 O b3 b-CA 1 OCT-42019 CONSENT TO ASSIGNMENT OF ca 1 yS AO grw RT1�o CITY SECRETARY CONTRACT NO. 50636 C� ECq��q HANGAR AND GROUND LEASE AGREEMENTS FORT WORTH SPINKS AIRPORT LEASE SITE 32 This CONSENT TO ASSIGNMENT OF CITY SECRETARY CONTRACT NO. 50636, ("Consent") is made and entered into by and between the CITY OF FORT WORTH, TEXAS ("Lessor"), a Texas 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; the MYERS INVESTMENT GROUP, LLC., a foreign for-profit Corporation ("Lessee"), acting by and through DOUG MYERS, its duly authorized Agent; and DANIEL GRIFFITH, an individual (Assignee). RECITALS: The following introductory provisions are true and correct and form the basis of this Consent: WHEREAS, On or about April 13, 2018, Lessor and the Myers Investment Group, LLC entered into City Secretary Contract("CSC")No.50636,a Hangar and Ground Lease Agreement for the lease and use of real property known as Lease Site 32 and any improvements and facilities thereon ("Leased Premises") at Fort Worth Meacham Spinks Airport ("Airport") for a five (5) year initial term with two (2) additional options for renewal at 5 year terms each; and WHEREAS, On May 31, 2019, Staff received a request from the Myers Investment Group, LLC to assign the Hangar and Ground Lease Agreement to Daniel Griffith;and WHEREAS, On August 20, 2019 the request for this Consent to Assigment was approved by City Council under M&C File Number M&C 19-0073; and WHEREAS,Lessee now wishes to assign all of Lessee's remaining right,title and interest in the Leased Premises and the above referenced Hangar and Ground Lease to Assignee;Assignee wishes to accept such assignment; and Lessor is willing to consent to such assignment, all on the terms and conditions set forth in this Consent. AGREEMENT: NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Lessor, Lessee, and Assignee agree as follows: 1. Lessor hereby consents to an assignment by Lessee to Assignee of all of Lessee's remaining right, title and interest in the Leased Premises and Leases granted to Lessee by the Leases (the "Assignment"), effective as of the date the Assignment is executed by Lessee and Consent to Assignment of CSC No.50636 by Myers Investment Group,LLC to Daniel Griffith Page 1 of 6 OFFICIAL RECORD M SECRETARY FT. WORTH,TX Assignee("Effective Date"). The Assignment is a public document that will be on file in Lessor's City Secretary's Office and Aviation Department, is attached hereto as Exhibit "A" and is incorporated herein by reference for all purposes. 2. Lessor does not adopt,ratify or approve any of the particular provisions of the Assignment and does not grant any remaining right, privilege or use to Assignee which is different from or more extensive than any right, privilege or use granted to Lessee by the Leases. In the event of any conflict between the Leases and the Assignment, the Leases shall control. In the event of any conflict between this Consent and the Assignment,this Consent shall control. 3. Lessor consents to the Assignment expressly upon the promise and covenant by Assignee, and Assignee hereby promises and covenants to Lessor,that as of the Effective Date Assignee will faithfully perform, as an independent contractor, all duties and obligations of Lessee set forth in the Lease. Lessor acknowledges Lessee has no duties and obligations under the Leases after the Effective Date and,except as set forth herein,Lessee shall be released and forever discharged from any and all actions, causes of action,judgments, executions, suits, investigations, debts, claims, demands, liabilities, obligations, damages, and expenses of any and every character that arise out of or in any way connected to the Lease accruing after the Effective Date. 4. Lessee understands and agrees that Lessee will be liable to Lessor for (i) any duty or obligation of Lessee that Lessee was required by the Leases to undertake or perform prior to the Effective Date and(ii)any damages(subject to the terms of the Leases), including,but not limited to,property loss,property damage and/or personal injury of any kind,including death,to the extent caused by Lessee, its officers, agents, servants, employees or subcontractors prior to the Effective Date. 5. Assignee understands and agrees that Assignee will be liable to Lessor for(i) any duty or obligation of Lessee that Lessee is required by the Leases to undertake or perform on or after the Effective Date and (ii)_for any damages (subject to the terms of the Lease), including, but not limited to, property loss, property damage and/or personal injury of any kind, including death, to the extent caused by Assignee, its officers, agents, servants, employees or subcontractors on or after the Effective Date. 6. The person signing this Consent hereby warrants that he/she has the legal authority to execute this Consent on behalf of the respective party, and that such binding authority has been granted by proper order, resolution, ordinance or other authorization of the entity. The other party is fully entitled to rely on this warranty and representation in entering into this Consent. 7. This Consent may be executed in any number of counterparts,all of which shall constitute the same instrument. 8. All terms in this Consent that are capitalized but not defined shall have the meanings assigned to them in the Leases. Consent to Assignment of CSC No.50636 by Myers Investment Group,LLC to Daniel Griffith Page 2 of 6 9. All of the Mandatory Improvements set forth in paragraph 4 and Exhibit B of the Hangar and Ground Lease Agreement (CSC-50636), have not been satisfactorily completed and the Assignee shall be responsible for their completion upon execution of this Consent. [SIGNATURES APPEAR ON THE FOLLOWING PAGES) Consent to Assignment of CSC No.50636 by Myers Investment Group,LLC to Daniel Griffith Page 3 of 6 IN WITNESS WHEREOF,the parties hereto have executed this Agreement in multiples on this the 34 day of Ocfobcr , 2019. CITY OF FORT WORTH: APPROVED AS TO FORM AND LEGALITY: By: 4-5: B �/� Y• Fernando Costa Thomas Royce Hansen, Assistant City Attorney Assistant City Manager ATTE T: '� V U00R `t: Date: /0LAb1 By: -'?�t ry J Kayser, City Secreta M&C: 19-0073 ' M&C Approved: August 27, 2019 Form 1295: 2019-514083 8t aDlq-513g5`� STATE OF TEXAS § COUNTY OF TARRANC § 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. IVEN UNDER MY HAND AND SEAL OF OFFICE this rOC day 92019. tsar►�e Veronica M.Longoria Salinas ?° Notary Public- tate of TexasL4-4e� yt0 Notary ID#440598-8 Notary Public in and for th State of Texas u�OF Commission Exp.DEC.27,2022 [SIGNATURES CONTINUE ON THE FOLLOWING PAGE] Consent to Assignment of CSC No.50636 Myers Investment Group,I I c to OFFICIAL RECORD to Daniel Griffith Page 4 of CITY SECRETARY FT. WORTH.,T}( Contract Compliance Manager: By signing I acknowledge that I am the person responsible for the monitoring and administration of this contrast,fck��n' ng all performance and reporting requirements. �4 — arbar Goo n ew Title LESSEE: M ers Investment Group,LLC Doug Myers Date:/7 9 STATE OF TEXAS § COUNTY OF ;2 rrz-c4 § BEFORE ME,the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared Doug Myers, 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 MYERS INVESTMENT GROUP, LLC and that s/he executed the same as the act of MYERS INVESTMENT GROUP, LLC for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this / f da 2019. " SANDRAJO POWELL _ a`'P�' 6P a�: ID#425964-3 - Notary Public,state of Texas No ublic in and fofTYe State of Texas My Commission Expires 08/29/2021 [SIGNATURES CONTINUE ON THE FOLLOWING PAGE] Consent to Assignment of CSC No.50636 by Myers Investment Group,LLC to Daniel Griffith Page s of � F UAL RECORD CE, SECRETARY T. WORTH,TX ASSIGN IEL G FITH,an individu By: Daniel Griffith Date: — r STATE OF�XAS § COUNTY OF § BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared Daniel Griffith 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 Daniel Griffith, and that he executed the same as the of Daniel Griffith, for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this c�� '� day 2019. `? Pa SANDRAJO POWELL Y P Notary Public in for the State of Texas ID#425964-3 N h No Public,State of Texas OF t�};� My Commission Expires 08/29/2021 Consent to Assignment of CSC No.50636 by Myers Investment Group,LLC to Daniel Griffith OFFICIAL RECORD Page 6 of 6 CITY SECRETARY FT WORTH, TIC EXHIBIT A GRIFFITH/MYERS GROUP/MISC. Lease Assignment Date: SEPTEMBER 4, 2019 Assignor: THE MYERS INVESTMENT GROUP, LLC Assignee: DANIEL GRIFFITH,A MARRIED PERSON Lease Date: APRIL 17, 2018 Landlord: CITY OF FORT WORTH Tenant: THE MYERS INVESTMENT GROUP, LLC Premises: 20,145 SQUARE FEET OF GROUND SPACE, INCLUDING A 9,240 SQUARE FOOT HANGAR AT FORT WORTH SPINKS AIRPORT IN FORT WORTH, TARRANT COUNTY, TEXAS, IDENTIFIED AS LEASE SITE 32, AS SHOWN IN EXHIBIT "A", ATTACHED HERETO AND MADE A PART HEREOF FOR ALL PURPOSES. Assignor assigns to Assignee Tenant's interest in the Lease. Assignee agrees to assume Tenant's obligations under the Lease and to accept the premises in their present"AS IS"condition. This Assignment is subject to the Landlord's consent. ASSIGNOR: THE MYERS INVESTMENT GROUP, LLC BY: I .e DOUG YERS, _/1^ f— ASSI EE: DANIEL GRIFFIT ASSIGNMENT OF LEASE Page 1 THE STATE OF TEXAS § COUNTY OF /Ga Ff i—,At § This instrument was acknowledged before me on the ffi�day of c�P(� 20�, by DOUG R. MYERS((�Gcc�ecin�—af THE MYERS INVESTMENT GROUP, LLC, a LIMITED LIABILITY COMPANY,on behalf of said LIMITED LI ILITY COMPANY. low_ JO POWELL 425964-3 otary Public, State ofblic,Stale of TexasNotary's Printed Name:mission Expires Notary's Commission Expires:9/2021 THE STATE OF TEXAS § COUNTY OF/ q�-/�(o�>t § This instrument was acknowledged before me on the day of C 20 by DANIEL GRIFFITH i SANDRA JO POWELL otary Public, State of f( a°aY°�e' Notary's Printed Name: ll ?r`p �= ID#425964.3 ry N y'- Notary Public,State of Texas Notary's Commission Expires: 9, �,; My Commission Expires �FJill � 08/29/2021 ''�annN PREPARED IN THE LAW OFFICE OF: NEWMAN&LAWLER A PROFESSIONAL LIMITED LIABILITY COMPANY ATTORNEYS AT LAW 200 BAILEY AVE.,SUITE 100 FORT WORTH,TEXAS 76107 ASSIGNMENT OF LEASE Page 2 LEGAL DESCRIPTION FOR LEASE SITE 32-N AT FORT WORTH SPINKS AIRPORT A parcel of land out of Block 5,Fort Worth Spinks Airport according to the plat recorded in Cabinet A,Slide 353,Plat Records,Tarrant County,Texas and being more particularly described using coordinates and bearings based on the Texas State Coordinate System,North Central Zone, N.A.D. 27 as follows: BEGINNING at a 5/8"iron rod with red plastic cap stamped"City of Fort-Worth Survey Section" set for the northeast corner of lease site 32-N. From which a 1/2"iron rod found at the northeast corner of said Block 5,bears North 89 degrees 58 minutes 23 seconds East 111.441 feet and North 00 degrees 44 minutes 56 seconds East,624.251 feet,the coordinates of said beginning point are X=2,061,527.65,Y=329,497.69; THENCE:South 00 degrees 44minutes 56 seconds West,with the east line of said lease,199.0'feet to a 5/8" iron rod with red plastic cap stamped"City of Fort-Worth Survey Section"set for its southeast corner; THENCE:South 89 degrees 58 minutes 23 seconds West,with the south line of said lease,97.0'feet to an 5/8"iron rod with red plastic cap set stamped"City of Fort-Worth Survey Section"set for its southwest corner; THENCE:North 00 degrees 44 minutes 56 seconds East,with the west line of said lease,199.05 feet to a 5/8"iron rod with red plastic cap stamped"City of Fort-Worth Survey Section"set for the northwest corner of said lease; THENCE: North 89 degrees 58 minutes 23 seconds East,with the north line of said lease,97.0'feet to the point of beginning and containing 19,303 square feet of land more or less. DAR:HKH: BNM: SPINKS32N.DOC C:\p ro j\0300\03008002\do c\SPINKS32N.DOC w� ! ANSK. H * 4786c �. I �O un�M Y f SUR City of Fort Worth, Texas Mayor and Council Communication DATE: 08/27/19 M&C FILE NUMBER: M&C 19-0073 LOG NAME: 55FWS CONSENTASSIGNMENT HNGR32 SUBJECT Authorize Execution of Consent to Assignment of a Hangar and Ground Lease Agreement for Lease Site 32 at Fort Worth Spinks Airport by the Myers Investment Group, LLC,to Daniel Griffith.(COUNCIL DISTRICT 6) RECOMMENDATION: It is recommended that the City Council authorize the execution of a Consent to Assignment of a Hangar and Ground Lease Agreement for Lease Site 32 at Fort Worth Spinks Airport by The Myers Investment Group,LLC to Daniel Griffith. DISCUSSION: On March 27, 2018, (M&C C-28646), City Council approved City Secretary Contract No.50636,a Hangar and Ground Lease Agreement with Doug Myers of the The Myers Investment Group, LLC,for Lease Site 32,at Fort Worth Spinks Airport. Lease Site 32 consists of a 9,240 square feet Hangar and 20,145 square feet of Ground Space. The initial term of the lease commenced on April 1,2018 at 12:00 AM and expires at 11:59 PM on March 31,2023. In addition to the"Initial Term"the lease provides the option to renew upon expiration of the initial term. Renewal options allow Lessee two(2)consecutive options to renew this Lease for two(2)additional successive terms of five(5)years. At commencement of the original lease,the total revenue received from this lease was approximately$18,190.00 annually or$1,515.86 per month. Revenue was based on a hangar rate of approximately$1.38 per square foot and a ground rental rate of$0.27 per square foot, in accordance with the Aviation Department's Schedule of Rates and Charges and Lessor's market analysis. Rental rates shall be subject to an increase on October 1 st of any given year, based on the upward percentage change in the Consumer Price Index for the Dallas-Fort Worth Metropolitan area. At no time will the adjusted rate exceed the rate that is current in the Schedule of Rates and Charges. After a subsequent Consumer Price Index rate adjustment,the current rate is$18,590.16 annually or$1,549.18 per month. Current revenue is based on a hangar rate of$1.41 per square foot and a ground rental rate of$0.28 per square foot. In addition to the Annual Rent Adjustments,on October 1,2023,and every fifth(5th)year thereafter for the remainder of the Initial Term(i.e.on October 1 st of 2028,2033,and 2038),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. Every tenth(10th)year for each Initial and Renewal term of the lease,the Hangar rate shall automatically be adjusted to equal the then Fair Market Value,as 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. On May 31,2019,Staff received a request from The Myers Investment Group, LLC to assign the Hangar and Ground Lease Agreement to Daniel Griffith.Upon City Council approval, Daniel Griffith will assume the leasehold interest and obligations associated with the lease. The Hangar and Ground Lease Agreement prohibits any assignment of the lease or causing any lien to be made on improvements constructed on the leased premises without City Council approval.These types of transactions are routine for airport tenants and Staff has no objection to this request. This Consent to Assignment was included as a discussion item at the July 11,2019 Aviation Advisory Board meeting agenda. Fort Worth Spinks Airport is located in COUNCIL DISTRICT 6. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that upon approval of the above recommendations,this action will have no material affect on City funds.Under the current Lease Agreement,Myers Investment Group,remits the amount of$18,590.16 annually to the City.After assignment,Daniel Griffith will remit the same amount and be subject to the provisions contained within the original lease. Submitted for City Manager's Office by: Fernando Costa 6122 Originating Business Unit Head: Bill Welstead 5402 Additional Information Contact: Barbara Goodwin 5415