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HomeMy WebLinkAboutContract 37538CITY S"ECRETARY CON T R,CT NO, LESSOR ESTOPPEL CERTIFICATE AND CONSENT L 2008 Regions Bank P.O. Box 7232 Monroe, Louisiana 71211-7232 Ladies and Gentlemen: FWS Realty, Ltd. ("Prior Lessee") and the City of Fort Worth (the 'City") entered into a written ground lease agreement dated October 6, 2004, and on file in the City Secretary's Office as City Secretary Contract No. 30655, which including all amendments or modifications thereto, are incorporated by reference (the "Lease"), pursuant to which the City leased to Prior Lessee and Prior Lessee leased from the city certain premises located at Spinks Airport in the City of Fort Worth, as described in the Lease ("Premises" herein). Regions Bank has entered into an agreement with Prior Lessee to provide financing for construction of improvements on the Premises. The City hereby certifies to and agrees as follows: 1. That the Lease has not been modified, altered, or amended in writing or orally, except for any Amendment No. 1, City Secretary Contract NO. 32469, all of which are attached hereto. 2. The Lease (including any amendments or modifications referred to in Paragraph 1 above) constitutes the only contractual agreement between the City and Lessee with respect to the Premises. 3, The Lease is in full force and effect and, to the best of the City's knowledgeI no uncured breach or event of default has occurred as of the date hereof. The City has no right to setoffs, claims or defenses to the enforcement of the Lease by Lessee against the City, except as may be provided by the Lease or by federal, state, or local law or ordinance. The City presently has no setoffs, claims or defenses outstanding against the Lessee. 4. As of the date hereof, the City, to the best of the City's knowledge, is not in default in the performance of the Lease and has not committed any breach of the Lease. As of the date of this Certificate, the City has not been advised by Lessee that the City has promulgated any policy, ordinance, rule or regulation which would diminish, contradict, void or otherwise impair the rights of Lessee granted or created under the terms of the Lease. OFFICI%i�. RECORD CITY SECRETARY FT.INORTH, TX 5. That to the City's knowledge, Lessee has not transferred, assigned or sublet the Lease or the Premises in whole or in part. 6. That the Effective Date of the Lease, as defined therein, was October 6, 2004, and that the Lease term will expire in accordance with its terms on September 30, 2034, subject to any renewal rights that Lessee may have, as provided by City Secretary Contract No. 30655, as amended by City Secretary Contract No. 32469. 7. That no security deposit is held by the City under the Lease and Prior Lessee is current on its rental pavments. 8. Other than the rental amounts and any fees set forth in City Secretary Contract No. 30655, that Lessee is not obligated to pay any other sums to the City under the Lease. 9. To the best of the City's knowledge after inquiry, the current use of the Premises is in accordance with all of the terms and conditions of the Lease and in accordance with the City's Minimum Standards for Fixed Base Operators and Other Tenants. Nothing contained in this Estoppel Certificate and Consent shall be construed to modify or amend the Lease, or waive any rights of the City under the Lease. EXECUTED on this the day of , 2008. _ o-a3oo� Jontract .AuthorixatiOR THE CITY OF FORT WORTH, TEXAS, a Texas municipal corporation By: T.M. Higgins Assistant City Manager RECOMMENDED FOR APPROVAL By: Kent Penney Airport Systems Director APPROVED AS TO FORM AND LEGALITY: Assistant City Attorney OFt IC�Ai_ RECOR® CITY SECRETARY T. WORTH, TX ity f Fort orth, Texas s E P ®� �Ec'o • • • • • COUNCIL ACTION: Approved on 9/2/2008 DATE: Tuesday, September 02, 2008 LOG NAME: 55FWS NEW DOT REFERENCE NO.: *�C-23005 SUBJECT: Authorize Execution of a Written Consent to Deed of Trust Lien by FWS Realty, Ltd., in Favor of Regions Bank for the Terminal Building at Fort Worth Spinks Airport RECOMMENDATION: It is recommended that the City Council authorize the City Manager to execute a written consent to Deed of Trust Lien by FWS Realty, Ltd., in favor of Regions Bank for the Terminal Building at Fort Worth Spinks Airport. DISCUSSION: On May 18, 2004, (M&C C-20086) City Council approved execution of an unimproved ground lease with mandatory improvements with FWS Realty, Ltd., for a phased development project at Fort Worth Spinks Airport. One of these developments was an FBO Terminal Building which FWS Realty, Ltd., managed by Haydn Cutler, currently leases the ground for the terminal building at Fort Worth Spinks Airport pursuant to City Secretary Contract (CSC) No. 30655. FWS Realty, Ltd., wishes to put up the 7,400 square foot executive terminal building as collateral. FWS Realty, Ltd., wishes to obtain financing for the 7,400 square foot executive terminal building from Regions Bank. Accordingly, Mr. Cutler has requested the City's consent to his execution of a Deed of Trust Lien on the premises in order for the Bank to secure his loan. The Deed of Trust Lien will grant the Bank the right to operate as Lessee or to secure another tenant in place of FWS Realty, Ltd., if approved by the City Council, in the event that FWS Realty, Ltd., defaults on the loan or their lease with the City of Fort Worth. The Lease Agreement prohibits FWS Realty, Ltd., or Haydn Cutler from making any assignment of the Lease or causing any lien to be made on improvements constructed on the Leased Premises without City Council approval. This type of transaction is routine for large airport tenants and City staff has no objection to Mr. Cutler's request. Fort Worth Spinks Airport is located in COUNCIL DISTRICT 8. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that this action will have no material affect on City funds. TO Fund/Account/Centers FROM Fund/Account/Centers Submitted for City Manager's Office by: Tom Higgins (6266) Originating Department Head: Kent Penney (5403) Additional Information Contact: Patrick Carreno (447-8304) Logname: 55FWS NEW DOT Page 1 of 1