HomeMy WebLinkAboutContract 26680-A1 CITY BECRUARY
CONTRACT NIO.
AMENDMENT NO. 1 TO CSC NO.26680
GROUND LEASE AGREEMENT
FORT WORTH MEACHAM INTERNATIONAL AIRPORT
LEASE SITE 31N
This AMENDMENT NO. 1 ("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 TEXAS JET, INC. ("Lessee"), a Texas corporation, acting herein by and
through Reed Pigman,Jr., its duly authorized President.
Recitals
The following statements are true and correct and form the basis of this Agreement:
WHEREAS, on April 13, 2001, Texas Jet, Inc. entered into City Secretary Contract No.
26680, a Ground Lease Agreement for Lease Sites 21N and 31N, consisting of a total of 78,105
square feet of ground space which includes two hangars, hangar 21N is approximately]4,265.7
square feet and hangar 31N is approximately 11,760 square feet, at Fort Worth Meacham
International Airport("Lease"); and
WHEREAS, the Lease contains a thirty (30) year initial lease term that will expire on
September 30, 2030, with two (2) consecutive rights of first refusal to renew the Lease for two
(2) additional successive terms of five(5)years each ; and
WHEREAS, Hangar 21N has exceeded its useful life and has become functionally
obsolete in handling larger modern aircraft and Lessee has requested permission to demolish it
and build a 27,000 square foot hangar. In addition, the Lessee has requested to remove the 21N
lease site, comprised of 57,675.36 square feet, from this Lease in order to facilitate rebuilding
efforts; and
WHEREAS, a new lease for the 21N site will be executed for the ground space to be
removed from this Lease; and
NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of
which are hereby acknowledged, Lessor and Lessee hereby agree as follows:
1. Section 2. of CSC No. 26680 is hereby repealed and deleted in its entirety and replaced with
the following:
Amendment No.I to CSC No.26680 OFFICIAL RECORD
Ground Lease Agreement CITY SECRETARY Texas Jet,Inc
Page I of 5 FT. WORTH, TX
APR 2014
PROPERTY LEASED.
Lessor hereby demises to Lessee 20,429.64 square feet of ground space at Fort Worth
Meacham International Airport ("Airport") in Fort Worth, Tarrant County, Texas
("Premises"), as shown in Exhibit "A", attached hereto and hereby made a part of this
Lease for all purposes.
2. Section 4 of CSC No. 26680 is hereby repealed and deleted in its entirety and replaced with
the following:
4.1. MONTHLY RENT.
Lessee hereby promises and agrees to pay Lessor, as annual rent for the ground space,
which comprises 20,429.64 square feet, Five Thousand Eight Hundred and Forty Four
Dollars and Ninety Two Cents ($5,844.92), at a rate of$0.2861 per square foot, payable
in equal monthly installments of Four Hundred and Eighty Seven Dollars and Eight Cents
($487.08).
4.2. RATE ADJUSTMENTS.
4.2.1. Consumer Price Index Adiustments.
The rental rates under this Lease are based on Lessor's current published
Schedule of Rates and Charges. Rental rates are subject to increase
beginning October 1, 2014, and on October 1st of any subsequent year
during the Initial Term and any Renewal Term, to reflect any upward
change in the Consumer Price Index for the Dallas/Fort Worth
Metropolitan Area, as announced by the United States Department of
Labor or successor agency (i) for the first increase, since the Effective
Date of this Lease and (ii) for each subsequent increase, since the effective
date of the last increase (the "Annual Rent Adjustment"); provided,
however, that Lessee's rental rates shall not exceed the then-current rates
prescribed by Lessor's published Schedule of Rates and Charges for the
type or types of property similar to the type or types of property that
comprise the Premises.
4.2.2. Five-Year Adiustments,Ground Rate.
In addition to the Annual Rent Adjustments, on December 1, 2016, and
every fifth (5th) year thereafter for the remainder of the term of the Lease,
the Ground rental rate 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 Ground.
Amendment No.I to CSC No.26680
Ground Lease Agreement
Texas Jet,Inc
Page 2 of 5
4.3. Payment Dates and Late Fees.
Monthly rent payments are due on or before the first (1st) day of each month.
Payments must be received during normal business hours by the due date at the
location for Lessor's Aviation Department set forth in Section 17. Rent shall be
considered past due if Lessor has not received full payment after the tenth (loth)
day of the month for which payment is due. Without limiting Lessor's
termination rights as provided by this Lease, Lessor will assess a late penalty
charge of ten percent (10%) per month on the entire balance of any overdue rent
that Lessee may accrue.
3. The statements set forth in the recitals above are true and correct and form the basis upon
which Lessor and Lessee have entered into this Agreement. The Lease is a public document on file
in Lessor's City Secretary's Office and is incorporated herein by reference for all purposes.
4. All other provisions and conditions of the Lease that are not expressly amended herein or
directly in conflict with the provisions and conditions of this Amendment shall remain in full
force and effect.
5. The person signing this agreement hereby warrants that he/she has the legal authority to
execute this agreement 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. Each party is
fully entitled to rely on these warranties and representations in entering into this Agreement or
any amendment hereto.
IN WITNESS EREAF, the parties hereto have executed this Agreement in multiples
on this the day of �,� , 2014.
CITY OF FORT WORTH:
rAl
By:
Fernando Costa
Assistant City Manager
Date:T��'
STATE OF TEXAS §
COUNTY OF TARRANT §
Amendment No.I to CSC No.26680
Ground Lease Agreement
Texas Jet,Inc
Page 3 of 5
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
2014.
EVONIA DANIELS
Notary Public,State at Texas
F My Commission Expires July 10, 2017 ry to Public in and for the State of Texas
APPROVED AS TO FORM ATTEST:
AND LEGALIT :
4 7
By: It By:
le arlene Sanders Mary J r 61
Assistant City Attorney City Secretary
CAS o® ;
°
g ;
Date: a..�14 y
: S
LESSEE: ATTEST.
TEXAS JET,INC.
1
By: By:
eed Pigman, Jr.
President
Date: �v/ �L%/t/ �l
STATE OF TEXAS §
COUNTY OF �T, Z2?ga� §
Amendment No.I to CSC No.26680
Ground Lease Agreement
Texas Jet,Inc OFFICIAL RECORD
Page 4 of 5
CITY SECRETARY
FT.WORTH,TX
BEFORE ME,the undersigned authority,a Notary Public in and for the State of Texas,on
this day personally appeared Reed Pigman,Jr.,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 Texas
Jet,Inc. and that s/he executed the same as the act of Texas Jet,Inc. for the purposes and
consideration therein expressed and in the capacity therein stated.
GIYEN UNDER MY HAND AND SEAL OF OFFICE this l day
Agikzor v 2014.
C42
Notary Public in and for the State of Texas
LESA MUKE
My Commission Expires
May 16, 2014
Amendment No.I to CSC No.26680
Ground Lease Agreement
Texas Jet,Inc
Page 5 of 5
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 3/18/2014
DATE: Tuesday, March 18, 2014 REFERENCE NO.: **C-26713
LOG NAME: 55FTW TEXASJETINC AMEND ONE
SUBJECT:
Authorize Execution of Amendment No. 1 to City Secretary Contract No. 26680, a Ground Lease
Agreement with Texas Jet, Inc., for Lease Sites 21 N and 31 N at Fort Worth Meacham International Airport
to Remove Lease Site 21 N from City Secretary Contract No. 26680 and Authorize Execution of a Ground
Lease Agreement with Mandatory Improvements with Texas Jet, Inc., for Lease Site 21 N at Fort Worth
Meacham International Airport (COUNCIL DISTRICT 2)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the execution of Amendment No. 1 to City Secretary Contract No. 26680, a Ground Lease
Agreement with Texas Jet, Inc., for Lease Sites 21 N and 31 N at Fort Worth Meacham International Airport
to remove Lease Site 21 N from City Secretary Contract No. 26680; and
2. Authorize the execution of a Ground Lease Agreement with Mandatory Improvements with Texas Jet,
Inc., for Lease Site 21 N at Fort Worth Meacham International Airport.
DISCUSSION:
On April 13, 2001, (M&C C-18433) Texas Jet, Inc. (Texas Jet), entered into City Secretary Contract (CSC)
No. 26680, a Ground Lease Agreement, for Lease Sites 21 N and 31 N consisting of a total of 78,105
square feet of ground space, which includes two hangars at Fort Worth Meacham International Airport
(Meacham). Hangar 21 N is approximately 14,265.7 square feet and Hangar 31 N is approximately 11,760
square feet. CSC No. 26680 contains a 30 year lease term that will expire on September 30, 2030 with
two consecutive rights of first refusal to renew the lease for two additional successive terms of five years
each.
Hangar 21 N has exceeded its useful life and has become functionally obsolete in handling larger modern
aircraft. Aviation Staff has received a request from Texas Jet seeking permission to demolish the hangar
and build a new 27,000 square foot hangar in its place. In addition, Texas Jet has requested to remove
the 21 N Lease Site, comprised of 57,675.36 square feet, from CSC No. 26680 in order to facilitate the
rebuilding efforts, which will leave Lease Site 31 N as the remaining site on this Agreement. Staff finds no
objection to these requests, as they are mutually beneficial to Texas Jet and Meacham.
This Amendment No. 1 will reduce the total square footage under CSC No. 26680 to 20,429.64 square
feet from the original square footage of 78,105. In addition, the rental rates, as identified in CSC No.
26680, will adjust in accordance with the adjusted total square footage. With this Amendment No. 1, CSC
No. 26680 will generate revenue of approximately $5,844.92 annually or$487.08 monthly.
The new ground lease, for lease site 21 N, will consist of 95,832 square feet of ground space and will
Logname: 55FTW TEXASJETINC AMEND ONE Page 1 of 2
provide for a 30 year term with two options to renew for an additional five years each. The initial term of
the lease will expire on March 31, 2044. The total revenue received from this lease, at a rate of$0.32 per
square foot, will be in the amount of$30,666.24 annually or$2,555.52 monthly, in accordance with the
Aviation Department's Schedule of Rates and Charges.
During the initial term of the lease, rental rates shall be subject to an increase every year to reflect the
upward percentage change, if any, in the Consumer Price Index for the period since the last
adjustment. In addition, rental rates during the initial and renewal terms will also be subject to a ground
rate adjustment every five years. The ground rate will automatically be adjusted to equal the then current
rates prescribed by the Schedule of Rates and Charges.
All other terms and conditions will remain unchanged and in effect.
The property is located in COUNCIL DISTRICT 2, Mapsco 48P.
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:
TO Fund/Account/Centers FROM Fund/Account/Centers
PE40 491052 0551101 $36,511.16
CERTIFICATIONS:
Submitted for City Manager's Office W. Fernando Costa (6122)
Originating Department Head: Bill Welstead (5402)
Additional Information Contact: Jonnie Huitt (5409)
ATTACHMENTS
1. 55FTW TexasJetlnc AmendOne Exhibit.pdf (Public)
Logname: 55FTW TEXASJETINC AMEND ONE Page 2 of 2