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HomeMy WebLinkAboutContract 35306-R1 CITY SECRETARY CONTRACT NO. FORTWORTH April T_,2012 Jack Clark Red Oak Realty 500 W 7h Street, Suite 1212 Fort Worth,TX 76102 Re: Revised Renewal of Lease Agreement between the City of Fort Worth("Tenant") and Hwy 80 Capital, L.P., a Texas limited partnership ("Landlord")for 600 sf on the 1'` Floor and 16,141 sf of the 3`d Floor at 8851 Camp Bowie West("Leased Premises") (as previously amended,the "Lease") (City Secretary Contract No. 35306) Dear Mr. Clark: This letter is to confirm our agreement as to the first renewal term of the Lease. The Lease term originally began on October 1, 2007 with a termination date of November 30, 2012. The Lease contemplates two additional renewal terms of five years each. Tenant would like to exercise the first option to renew the lease, and Landlord agrees to grant such extension,on the terms set forth in this letter agreement. The Lease contemplates a rental rate during the first renewal term of the then prevailing market rate for similar buildings in the market area. The parties agree that the rental rate for the first renewal term shall be$13.74/sf on an annual basis. This letter agreement is to document that the parties mutually agree to: • TERM AND RENT. Extend the term of the lease for a 36 month period (notwithstanding that this is shorter than the 60-month first renewal term contemplated in Section 4 of the Lease),being from December 1, 2012 until November 30, 2015, and that the rental rate during such 36-month renewal term will be$13.74/sf. The rental rate for the 600 sf of storage space on the first floor of the Building shall continue at the same rate as in effect during the initial term(i.e., $6.65 psf on an annual basis). The parties acknowledge and agree that the first renewal term is shorter than the 60-month first renewal term referenced in Section 4 of the Lease, and Tenant has waived its right to renew for any remaining portion of the 60-month first renewal term referenced in Section 4 of the Lease. Tenant shall continue to have the right to renew the Lease for the secon OFFICIAL RECORD CITY SECRETARY - - �' FT.WORTH,TX renewal term(i.e., one successive five-year term)pursuant to the terms of Section 4 of the Lease. • JANITORIAL. Tenant shall have the one-time right to elect to contract directly for janitorial and cleaning services within the Leased Premises by delivering at least 30 days' prior written notice to Landlord. In such event, commencing as of the effective date in Tenant's notice (which effective date must be on the first day of a calendar month, and must be at least 30 days after the date Landlord receives such notice), the Lease shall be automatically amended to provide that(i)Tenant's base rental shall be$12.87/sf on an annual basis, (ii) Landlord shall not be required to provide cleaning and janitorial service to the Leased Premises, and (iii) Tenant shall be responsible for providing cleaning and janitorial service to the Leased Premises at least 5 days a week using a janitor, cleaning contractor or employee of Tenant at all time satisfactory to Landlord. • IMPROVEMENTS TO PARKING AREA -Landlord, at Landlord's sole cost and expense, shall repair the damaged areas, apply a Seal Coat, restripe and add a gate to the fenced asphalt surface lot based on a mutually agreeable "plan" between the Tenant and Landlord. Landlord shall not be required to make any improvements to the Leased Premises and Tenant accepts the Leased Premises in its "AS-IS, WHERE-IS" condition. • EXPENSE STOP-The"expense stop" for operating expenses for the space shall in no event be less than the actual 2012 operating expenses. Tenant shall share proportionately(based on its rentable square footage against the total rentable square footage in the Building)in any increases in operating expenses for the Building over and above such amount. • TAX BASE YEAR-2012 • PARKING- During the term, Tenant shall be allotted surface parking space for the building at no charge. Tenant shall receive not less than one hundred& forty(140) surface parking spaces. The 140 spaces will be a combination of parking around the building and the secured fenced asphalt surface lot. • RIGHT OF FIRST REFUSAL. Effective as of December 1, 2012, the definition of"Right of First Refusal Space" in Section 6 of the Lease shall be amended to include any available space on the first floor of the Building. • BROKERAGE- This proposal is contingent upon the negotiation of a direct deal between Tenant and Landlord's agent with no outside real estate broker involvement. • RATIFICATION - Tenant hereby ratifies and confirms its obligations under the Lease, and represents and warrants to Landlord that it has no defenses thereto. Additionally, Tenant further confirms and ratifies that, as of the date hereof, (i) the Lease is and remains in good standing and in full force and effect, (ii) Tenant has no claims, counterclaims, set-offs or defenses against Landlord arising out of the Lease or in any way relating thereto or arising out of any other transaction between Landlord and Tenant, and(iii) except as expressly provided for in this letter agreement, all tenant finish-work allowances provided to Tenant under the Lease or otherwise, if any, have been paid in full by Landlord to Tenant, and Landlord has no further obligations with respect thereto. The signatures below indicate each party's concurrence with these terms. This letter of agreement has the same authority as an amendment to the Lease, and will be recorded in the Office of the City Secretary of Fort Worth. By executing below,the Tenant represents to Landlord that all conditions to the effectiveness of this amendment have been satisfied, including, without limitation, City Council approval. CITY OF FORT WORTH Fernando Costa, Assistant City Manager APPROVED AS TO FORM AND LEGALITY: eL ae nn D. Guzman, Assistant City Attorney HWY 80 CAPITAL, L.P. By: TAG WFM its general partner ,04'a� b &crO0o O'. M. e, its manager A by: °�a W 0 pxd a � J K 8 Icy °°o °° XA� OFFICIAL RECORD CITY SECRETARY contract AUthorizati.On FT. WORTH,TX DALLAS_1\5832889v1 � I 42799-45 04/02/2012 Date City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 5/1/2007 DATE: Tuesday, May 01, 2007 REFERENCE NO.: ""L-14314 LOG NAME: 30CAMP BOWIE SUBJECT: Authorize a Lease Agreement with Hwy 80 Capital, L.P.,for Additional Office Space Located at 8851 Camp Bowie Boulevard,for the Engineering Department RECOMMENDATION: It is recommended that the City Council: 1. Authorize a lease with Hwy 80 Capital, L.P.,for additional office space located at 8851 Camp Bowie Boulevard at a monthly lease amount of$21,015.04 for the Engineering Department; and 2. Authorize the City Manager to execute the appropriate lease agreement. DISCUSSION: The City's current bond and critical capital project programs and strong development activities have placed unprecedented engineering related service delivery demands on the City's infrastructure departments. Through the approved FY04/05 and FY05/06 budgets, the Engineering Department increased its staff in order to provide design, project management, survey, construction inspection and other engineering-related services for its customer departments. The construction inspection and surveying functions of the Engineering Department are currently located at the Holly Water Treatment Facility located at Fournier Street. Continuing capital improvements at the Water Treatment Facility and the limited potential for expansion of the facility that houses the department's operations necessitate the lease of additional office space. In order to provide for more effective and efficient delivery on construction inspection and surveying services on the City's capital projects, the department proposes to consolidate all of its inspection and surveying staff at one central location. The Department proposes to lease 16,441 square feet for a five year period with two five-year renewal options at the following negotiated rates: " 16,441 square feet for office space at$15.50 (per sq. ft.); " 300 square feet for storage space at$6.65 (per sq.ft.) The lease period will commence on May 1, 2007 with monthly lease payments to start on July 1, 2007. At these lease rates, the lease cost will total $252,180.50 annually for the full term of the lease. Staff recommends approval for the lease agreement of the additional office space. The building is located in COUNCIL DISTRICT 3. FISCAL INFORMATION /CERTIFICATION: http://apps.cfwnet.org/ecouncil/printmc.asp?id=7514&print—true&DocType=Print 11/1/2012 The Finance Director certifies that funds are available in the current operating budget, as appropriated, of the Engineering Services Fund. FUND CENTERS: TO Fund/Account/Centers FROM Fund/Account/Centers P119 537010 0305010 $15,761.28 P119 537010 0302010 $47,283.84 CERTIFICATIONS: Submitted for City Manager's Office by: Marc A. Ott (8476) Originating Department Head: A. Douglas Rademaker (6157) Additional Information Contact: Stephanie Givens (8873) ATTACHMENTS No attachments found. http://apps.cfwnet.org/ecouncil/printmc.asp?id=7514&print=true&DocType=Print 11/1/2012 '