Loading...
HomeMy WebLinkAboutContract 36685 CITY SECRETARY CONTRACT NO. FORT WORTH SPINKS AIRPORT TERMINAL BUILDING OFFICE LEASE AGREEMENT (FIVE YEAR TERM) This TERMINAL BUILDING OFFICE 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 and Denton Counties, Texas acting by and through Marc Ott, its duly authorized Assistant City Manager, and SPINKS LEASING H, INC. ("Lessee"), a Texas corporation acting by and through John Settle, its duly authorized representative. WITNESSETH: That 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 the following real property (hereinafter referred to as "Premises") in the Terminal Building("Terminal") at Fort Worth Spinks Airport("Airport"), which is located in portions of Tarrant and Johnson Counties, Texas and owned by Lessor in fee simple: 1.1. Office Suites B, C, D, E, F, G, H, and I totaling One Thousand Two Hundred Eighty Four (1,284) square feet as depicted on Exhibit "A", attached hereto and incorporated herein by reference for all purposes. 1.2. Storage Area totaling Six Hundred Thirty (630) square feet as depicted on Exhibit "A", attached hereto and incorporated herein by references for all purposes. 2. TERM OF LEASE. 2.1. Initial Term. The Initial Term of this Lease shall commence on December 1, 2007 ("Effective Date") and end on November 30,2012,unless terminated earlier as provided herein. 2.2 Renewals Upon expiration of the Initial Term, and if Lessee has complied with all terms and conditions of this Lease as reasonably determined by Lessor, Lessee shall have one option to renew this Lease for a period of five (5) years. Lessee shall notify Lessor of its intant to renew this Lease no more than one hundred eighty (180)not less than ninety(9 )4'' to expiration of the Initial Term. If Lessee fails to exercise this option, this Le v automatically terminate upon expiration of the Initial Term, unless terminat W`r , %'-29-08 P02:30 ! rd provided herein. 2.3. Holdover. If Lessee holds over after the expiration of the term of this Lease, this action will create a month-to-month tenancy. In this event, Lessee agrees to pay the rental amount set for the Premises by the Schedule of Rates and Charges in effect during the applicable holdover period. Any month-to-month tenancy shall be subject to all other terms and conditions of this Lease. 3. RENT. 3.1. Rent for Premises. Lessee shall pay Lessor as annual rent for the Leased Premises the sum of Eighteen Thousand Three Hundred Sixty Five Dollars and 94/100 ($18,365.94), payable in equal monthly installments of One Thousand Five Hundred Thirty Dollars and 50/100 ($1,530.50). This rate is based on Lessor's published Schedule of Rates and Charges in effect as of the Effective Date of this Lease. On October 1, 2008, and on October 1st of each year thereafter during the Term, Lessee's rental rate shall be subject to increase by Lessor to reflect the upward percentage change, if any, 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; provided, however, that except for the initial rental rate for the Leased Premises payable during the Term of this Lease, Lessee's rental rates shall not (i) be increased in any given year by more than ten percent (10%) over the rental rate paid by Lessee during the immediately preceding twelve (12) months or(ii) exceed the then-current rates prescribed by Lessor's published 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. 3.2. Payment Dates and Late Fees. All monthly rent payments under this Lease are due on or before the first (1st) 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 by the (IOth) 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. 3.3 Rent Credits Notwithstanding anything to the contrary herein, Lessee shall have the right to offset against rent payable hereunder for the Leased Premises a number of dollars equal to eighty percent(80%) of the number of dollars expended by Lessee for those rJ ] u • ;: 7 /Z`i^,�1Y capital improvements made to the Leased Premises, as well as any other capital improvements that are subsequently approved in writing by the Director of Airport Systems or authorized representative prior to the earlier of installation or the date in which the expense is incurred (collectively, "Designated Airport Improvements"); provided, however, that in no event may Lessee offset more than fifty percent (50%) of any monthly rent installment paid hereunder for this purpose. Lessee shall not be entitled to receive a rent credit for any Designated Airport Improvements other than those specifically identified unless Lessee provides Lessor with invoices, receipts and any other documentation reasonably necessary to verify the amount expended by Lessee for such Designated Airport Improvements. In addition, following at least forty-eight (48) hours' advance notice to Lessee, Lessor shall have the right, at any time during normal business hours, to review and audit all financial and business records of Lessee that relate to Designated Airport Improvements, including, but not limited to, construction documents, invoices and purchase receipts. Lessee shall make all such records available to Lessor in the Leased Premises and will otherwise fully cooperate with Lessor in undertaking such review or audit. Once Lessor has completed an audit with respect to a given Designated Airport Improvement, Lessor will not conduct a subsequent audit with respect to the same Designated Airport Improvement. Upon the expiration of the Term or prior termination of this Lease,Lessor shall have no obligation to reimburse Lessee for any expense incurred or expended by Lessee for any modification, construction or improvement at the Airport, including, but not limited to, any expenditures for Designated Airport Improvements that Lessee has not yet recouped through the rent credits provided under this Section 3.3. 4. DEPOSIT. Due to the Lessee's substantial investment in the Premises and significant improvements made, Lessor hereby waives any requirement of Lessee to provide a deposit prior to occupation of the Leased Premises. 5. UTILITIES. Lessee, at its sole cost and expense, shall pay for the installation and use of all telephone utilities on the Premises. Lessor shall pay for all other utilities in use on the Premises. 6. MAINTENANCE AND REPAIRS. 6.1. Maintenance and Repairs by Lessee. Lessee, at Lessee's sole cost and expense, shall provide janitorial services to the Premises and shall 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 UU rD� Premises. Lessee will not pile or store boxes, cartons, barrels or other similar items in a manner that is unsafe or unsightly. 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. 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. 6.2. 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. 7. 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 condition of the Premises. Lessee accepts the Premises in its present condition as satisfactory for all purposes set forth in this Lease. 8. 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 designee. All such approved construction work on and improvements to the Premises shall comply fully with all applicable federal, state and local laws, ordinances,rules and regulations 9. PARKING. Lessee shall have the right to use the designated public parking areas for the parking of company vehicles and the vehicles of its employees, licensees or invitees, subject to all ordinances and regulations of the City of Fort Worth and all other requirements of the Airport Manager. 10. USE OF PREMISES. Lessee agrees to use the Premises exclusively for aviation or aviation-related commercial activities. 11. SIGNS. Lessee may, at its own expense and with the prior written approval of the Director of Airport Systems or designee, 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 designee 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 sign at its own expense immediately upon receipt of instructions for such removal from the Director of Airport Systems or designee. 12. RIGHTS AND RESERVATIONS OF LESSOR. Lessor hereby retains the following rights and reservations: 12.1. All 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. 12.2. 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. 12.3. Lessor reserves the right 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 ^� i, �j U GI y 1�LSlti1: � R1 1 way be liable for any damages asserted by Lessee, including, but not limited to, damages from an alleged disruption of Lessee's business operations. 12.4. 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. 12.5. During any war or national emergency, Lessor shall have the right 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. 12.6. 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. 13. INSURANCE. 13.1. Coveraize Required. 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 following insurance coverage at the limits specified herein: • Commercial General Liability: $300,000.00 per occurrence (including Products and Completed Operations) Insurance coverage limits and requirements may be revised at Lessor's option, and Lessee will accordingly comply with such revisions within thirty (30) days following notice to Lessee of such 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, non- renewal or amendment, shall be made without thirty (30) days' prior written notice to Lessor. 13.2. 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 evidence that it has maintained such coverage in full force and effect. 14. 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. 15. LIABILITY AND INDEMNIFICATION. LESSEE HEREBY ASSUMES ALL LIABILITY AND RESPONSIBILITY FOR PROPERTY LOSS, PROPERTY DAMAGE AND/OR PERSONAL INJURY OF ANY KIND, 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 CAUSED BY LESSOR'S GROSS NEGLIGENCE OR INTENTIONAL MISCONDUCT 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 ANY RESULTING 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 CAUSED BY LESSOR'S GROSS NEGLIGENCE OR INTENTIONAL MISCONDUCT. 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 ANY AND ALL ACTS OR OMISSIONS OF LESSEE, ITS OFFICERS, AGENTS, EMPLOYEES, CONTRACTORS, SUBCONTRACTORS, LICENSEES, INVITEES, PATRONS OR TRESPASSERS, EXCEPT TO THE EXTENT CAUSED BYLESSOR'S GROSS NEGLIGENCE OR INTENTIONAL MISCONDUCT. 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 OFFICERS, AGENTS, SERVANTS, EMPLOYEES, CONTRACTORS, SUBCONTRACTORS, LICENSEES, INVITEES OR PATRONS, AND WHICH MAY BE 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 LESSOR'S GROSS NEGLIGENCE OR INTENTIONAL MISCONDUCT. 16. WAIVER OF CHARITABLE IMMUNITY 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. 17. TERMINATION BY LESSOR. In addition to any termination rights provided herein, any breach, default or failure by Lessee to keep and/or perform faithfully any of the terms, duties, obligations, conditions or provisions of this Lease shall be cause for Lessor to terminate this Lease immediately. In this event, lessor shall deliver to Lessee a written notice of termination which will include a reasonable description of the breach or default justifying the termination. Upon the termination or expiration of this Lease, Lessee shall vacate the Premises and Lessor shall have the right to take full possession of the Premises, by force if necessary, and to remove or take title to any and all property remaining on any part of the Premises without further legal process and without being liable for trespass or any other claim. 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. 18. 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: For Rent: For All Other Matters: CITY OF FORT WORTH DEPT OF AVIATION AVIATION DEPARTMENT MEACHAM INTL AIRPORT 4201 N MAIN ST STE 200 4201 N MAIN ST STE 200 FORT WORTH TX 76106 FORT WORTH TX 76106-2736 To LESSEE: Spinks Leasing II, Inc. 450 Alsbury Court, Suite G Burleson, TX 76028 19. 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. 20. 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. 21. 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. 22. 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 furnish 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 keep in effect all licenses and permits necessary for the operation of its business at the Airport. 25. GOVERNMENTAL POWERS. 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. 27. JURISDICTION AND 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 located in Tarrant County, Texas or in the United States District Court for the Northern District of Texas, Fort Worth Division. This Lease shall be governed by and construed in accordance with the laws of the State of Texas. 28. ATTORNEYS' FEES. In any action brought to enforce the obligations under this Lease, 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. ,2fta�'i".. . '= f 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. [Signature Pages Follow] IN WITNESS WHEREOF,the parties hereto have executed this Agreement in multiples as of the later date below: CITY OF FORT WORTH: By- -et - -r. rn.6wiGGiNs CT !N 8 Assistant City Manager Date: -,02,1 -a STATE OF TEXAS § COUNTY OF TARRANT § T m' I G C /Ats BEFORE ME, the undersigned thority, a Notary Public in and for the State of Texas, on this day personally appeared , 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 pZ k day 200—f. ANA L.BRV ENO Notary public,Stale of Texas my Commission Expires , "*a march 07,2011 Notary Public in and for the State of Texas APPROVED AS TO FORM ATTEST: AXTD T "Vd"ALl T Y: t By: Maleshr B. Farmer Marty Hendri Assistant City Attorney City Secretary Contract Authorization: M&C: Cl- �d tt Ti� Date Approved: SPINKS LEASING II,INC.: ATTEST s By: By: Nam : J hn Settle Date: r STATE OF TEXAS § COUNTY OF fG § BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared John Settle, 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 Spinks Leasing II, Inc. and that s/he executed the same as the act of Spinks Leasing II, Inc. for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this day 200_L. Notary ublic in and or the State of Texas *®KY? LISA MORROW * Notary Public,State of Texas My Commission Expires March 24,2008 bf Spinks Jet 1. EXHIBIT "A" x .qPir Sulfa Mite I r=. r Q S FL 1,�O Sq. R Storage Room" 630 + MEN'S ECK F Ll ~ StJI#8,F .3 a v. I i -zMta D 'ul z� C �Lt#a B I .. . Shop Space 630 Square Feet Lease Area Office Space 1284 Square Feet City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 21l912008 DATE: Tuesday, February 19, 2008 LOG NAME: 55SPINKS JET 5 REFERENCE NO.: **C-22675 SUBJECT: Authorize Execution of a Five-Year Office Lease Agreement with Spinks Leasing II, Inc., for Office Suites B, C, D, E, F, G, H and I along with Storage Area at Fort Worth Spinks Airport RECOMMENDATION: It is recommended that the City Council authorize the City Manager to execute a five-year office lease agreement with Spinks Leasing II, Inc., for office suites B, C, D, E, F, G, H and I along with storage area at Fort Worth Spinks Airport. DISCUSSION: Staff has received a request from Spinks Leasing II, Inc., to lease office and storage space in the old FBO facility located at 450 Alsbury Court at Spinks Airport. The requested lease space includes office Suites B, C, D, E, F, G, H and I totaling 1,284 square feet, and storage area totaling 630 square feet. The space will be used in the operation of their jet aircraft maintenance company that operates out of the adjacent old FBO hangar. Spinks Leasing II, Inc. has agreed to manage the entire building for the City, including all maintenance, furnishings, cleaning and supplies related to the building. To date, Spinks Leasing II, Inc., has invested $69,750.00 in improvements into the facility. In exchange for the improvements, Spinks Leasing II, Inc., will be given rent credits to be issued for 80 percent of the approved improvement costs, not to exceed 50 percent of the monthly rent amount due. Spinks Leasing II, Inc., will provide original, detailed invoices and or receipts after all improvements are completed. The term of the lease will begin on December 1, 2007 and expire November 30, 2012 for a five-year term. Spinks Leasing II, Inc., will also have one five-year option to renew. All other terms and conditions will follow standard City and Aviation Department policies. The total square feet of office space is 1,284 square feet at the rate of $13.71 per square foot. Revenue generated from office space will be $1,466.97 per month, or $17,603.64 annually. The total square feet of storage space is 630 square feet at the rate of $1.21 per square foot. Revenue generated from storage space will be $63.53 per month, or $762.30 annually. This is in accordance with the Aviation Department's Schedule of Rates and Charges. Total revenue received from this lease will be $18,365.94 per year, or $1,530.50 per month. 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. Fort Worth Spinks Airport is located in COUNCIL DISTRICT 8. Logname: 55SPINKS JET 5 Page 1 of 2 FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that the Revenue Section 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 491282 0551201 $18,365.94 Submitted for City Manager's Office by: Tom Higgins (Acting) (6192) Originating Department Head: Kent Penney (5403) Additional Information Contact: Ryan Cox (5407) Logname: 55SPINKS JET 5 Page 2 of 2