HomeMy WebLinkAboutContract 40495 (2)ciTv sECRernRv
CONTRACT NO.
FORT WORTH MEACHAM INTERNATIONAL AIRPORT
TERMINAL BUILDING OFFICE LEASE AGREEMENT
SUITES 100,102, 102A & 105
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 coiporation situated in Tarrant, Denton, Parker, and Wise Counties, Texas acting by
and through Fernando Costa, its duly authorized Assistant City Manager, and Rich Aviation
Services, LLC ("Lessee"), a Texas limited liability company.
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") located in the Terminal Building ("Terminal") at Fort Worth Meacham International
Airport ("Airport") in Fort Worth, Tarrant County, Texas:
1.1, 2,285 square feet of carpeted floor office space identified as Suites 100, 102,102A,
and 105 depicted on Exhibit "A", attached hereto and hereby made a part of this Lease for all
purposes.
2. TERM OF LEASE.
2.1. Initial Term.
The Initial 'Term of this Lease shall commence on July 1, 2010 (the "Effective
Date") and expire at 11:59 p.m., June 30, 2411, unless terminated earlier as provided
herein (the "Initial Term"),
2.2. Renewals.
If Lessee performs and abides by all provisions and conditions of this Lease,
Lessee shall have three (3) successive options to extend the term ofthis Lease, each option being
for an additional one-year period (each a "Renewal Term") on the same terms and conditions as
provided in this Lease at a rental rate calculated in accordance with Section 3.1 hereof; provided
that any exercise of an option to renew shall be delivered to Lessor no later than ninety (90) days
prior to the expiration of the then current term.
2.3 Oration for Month to Month Tenancy.
Upon the expiration of the Initial Tenn and in the event Lessee refi�ses to exercise
its initial renewal option pursuant to Section 2.2, Lessee shall have the option to continue to
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occupy to Premises on a month -to -month basis. Lessee shall provide Lessor with notice no later
than thirty (30) days prior to the expiration of the Initial Term of Lessee's intent to either (i)
terminate this Lease upon the expiration of the Initial Term, or (ii) continue to occupy to
Premises on a month -to -month basis after the expiration of the Initial Term. In the event Lessee
elects to continue to occupy the Premises on a month -to -month basis after the expiration of the
Initial Term, all of the terms and provisions of this Lease shall be applicable during that period;
provided, however, that during such month -to -month tenancy only, either party may terminate
the Lease upon thirty (30) days written notice to the other party.
3. RENT.
3.1. Rates and Adjustments.
Lessee shall commence the payment of rent, in accordance with this Section 3, on
the Effective Date of this Lease. From the Effective Date until September 30, 2010,
Lessee shall pay Lessor rent based on a rental rate of $15.60 per square foot which will be
payable in monthly installments of $2,970.50, for an annual rental rate of $35,646.00. On
October 1, 2010, and on October I st of each year thereafter during both the Initial Term
and any Renewal 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 in no event shall Lessee's monthly rental rate exceed the lesser of
(a) one hundred ten percent (110%) of the monthly rental rate paid by Lessee during the
immediately preceding twelve (12) month period, or (b) 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 llates and Late Fees.
Monthly rent payments under this Lease are due on or before the first (1 S`) day of
each month. Payments must be received during normal working hours by the due date at
the location for Lessor's Revenue Office as set forth in Section 18. Rent shall be
considered past due if Lessor has not received frill payment on or before the 10`h 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.
4. DEPOSIT.
Upon execution of this Lease, Lessee wi(1 remit to Lessor amaintenance/damage deposit
("Deposit") equivalent to one month's rent. Thezeafter, Lessee shall, at a minimum, maintain its
Deposit in an amount that is equivalent to its current monthly rental amount for the Premises.
Lessee's failure to maintain its Deposit as required shall constitute a breach of this Lease.
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Lessee's Deposit shall be in the form of a cash payment. Lessee will not be entitled to any
interest on this Deposit. Unless Lessor terminates this Lease for any breach, default or failure by
Lessee, I..essor will reffind any unused portion of this Deposit within thirty (30) days following
the date that Lessee vacates the Premises. Lessee acknowledges that if Lessor terminates this
Lease for any breach, default or failure by Lessee, Lessee shall forfeit the entire balance of its
Deposit.
5. UTILITIES.
Lessor agrees and covenants that it will pay for all utilities in use on the Premises, with
the exception of telephone utilities. For all leased space in the basement of the Terminal, Lessee
acknowledges that Lessor will not provide or pay for any air conditioning or heating services.
Before installing any type of air conditioning or heating devices in the basement of the Terminal,
Lessee shall obtain written permission from the Airport Systems Director or authorized
representative and shall, at Lessee's own expense, provide a ventilation system acceptable to
Lessor. Lessee agrees that all heating equipment and other electrically -operated equipment which
may be used on the Premises shall fully comply with the City of Fort Worth Mechanical,
Electrical, Plumbing, Fire and Building Codes, as they exist or may hereafter be amended.
�. MAINTENANCE AND REPAIRS.
6.1. Maintenance and Repairs by Lessor.
Lessor shall provide janitorial services to the Premises unless located in the
basement of the Terminal. Lessor agrees to perform minor repairs and maintenance on a
timely basis as required by the ordinary use of the Premises under the terms of this Lease
and which are not caused by any violation thereof by Lessee. Lessor shall have the right
and privilege, through its officers, agents, servants or employees, to inspect the Premises
at any time. If Lessor determines that Lessee is responsible for any maintenance or
repairs required on the Premises, it shall notify Lessee in writing. Lessee agrees to
undertake such maintenance or repair work within thirty (30) calendar days of receipt of
notice. If Lessee fails to undertake the maintenance or repairs recommended within this
time, Lessor may, in its discretion, perform the necessary maintenance or repairs on
behalf of Lessee. In this event, Lessee will reimburse Lessor for the cost of
the maintenance or repairs, and payment will be due on the date of Lessee's next monthly
rental payment following completion of the repairs.
6.2. Maintenance and ReDairs by Lessee.
Lessee agrees to keep and maintain the Premises in a good, clean and sanitary
condition at all times. Lessee covenants and agrees that it urill not make or suffer an}r
waste of the Premises. Lessee shall not allow any holes to be drilled or made in the brick,
plaster or cement work. Lessee will not pile or store boxes, cartons, barrels or other
similar items in a manner that is unsafe or unsightly. Upon termination of this Lease,
Lessee agrees to return the Premises to Lessor in the same condition as originally
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received, subject to ordinary wear and tear consistent with normal use over time. 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.
For any portion of the Premises located in the basement of the Terminal, Lessee
shall provide, at Lessee's own expense, and use covered metal receptacles for the
temporary storage of all trash and garbage and arrange and pay for the sanitary transport
and permanent disposal away from the Airport of all of Lessee's trash, garbage and
refuse.
b.3. 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.
�.1. Known Presence of Asbestos -Containing Material.
Lessee acknowledges the existence of asbestos -containing material on the
Premises. After investigation by Lessor, Lessor represents that, to the best of its
knowledge, asbestos -containing materials exist on the Premises to the extent identified in
Lessor's Level II Asbestos Assessment Report dated October 12, 1992, a public document
on file in Lessor's City Secretary's Office and incorporated herein by reference for all
purposes. Lessee covenants and agrees to comply with all federal, state and local laws
and regulations, now in existence or promulgated in the fixture, which pertain to asbestos
containing materials. Lessee covenants and agrees to cooperate fully with any asbestos
abatement activity plan or asbestos operations and maintenance plan set forth by Lessor.
For the avoidance of doubt and notwithstanding any provision in this Lease to the
contrary, neither Lessee nor any of its affiliates, officers, directors, partners, employees,
representatives, or agents shall have any obligation or responsibility for abating,
encapsulating or removing any asbestos from the Premises if the need for abatement is
caused by the disturbance of asbestos containing material by the Lessor. In addition, in
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the event any asbestos containing materials located on or near the Premises are disturbed
by Lessor and render the Premises untenantable, Lessee shall have the option to terminate
this Lease effective as of the date of such disturbance. In the event Lessee elects not to
terminate this Lease pursuant to this Section 7.1, any and all rent payable under this Lease
shall be abated from the date of any disturbance by Lessor rendering the premises
untenantable until the Premises are rendered tenable by an asbestos remediation
contractor certified by the State of Texas. Any costs for asbestos abatement caused by
Lessee disturbing the asbestos containing material shall be borne by the Lessee. Lessee
further covenants and agrees to notify and obtain written approval from Lessor prior to
Lessee's undertaking of any repairs, renovations, alterations or improvements to the
Premises or of any other activity which might disturb asbestos -containing materials.
Lessee agrees that it shall be solely responsible for all expenses of such activities. Lessor
retains the right to perform or cause to be performed air sampling on the Premises
to check for the presence of airborne asbestos fibers. Lessee agrees to allow Lessor full
access to the Premises to perform such tests. Lessor will make the results of any such
tests available to Lessee at Lessee's request.
7.2. Lessee's 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 Airport Systems Director or authorized representative. All
such approved construction work on and improvements to the Premises shall comply fully with
the Americans with Disabilities Act of 1990, as amended.
9. PARKING.
Lessee shall have the right to use the designated public parking areas and, to the extent
available and in accordance with policies established by the Airport Systems Director or
authorized representative, 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 Port Worth and all
other applicable laws.
lo. USE Or PREMISES.
Lessee agrees to use the Premises exchzsively far aviation or aviation -related
commercial activities including, btrt not limited to, aircraft instruction, t!ight simulator training
and aircraft rental. It is specifically agreed and stipulated that the following concessions are
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prohibited under this Lease, unless specifically approved by the Airport Systems Director or
authorized representative: (i) ground transportation for hire; (ii) motor vehicle rental, including
taxi and limousine service; (in
) food sales; (iv) barber and valet services; and (v) alcoholic
beverage sales.
11. SIGNS.
Lessee may, at its own expense and with the prior written approval of the Airport Systems
Director or authorized representative, create, install and maintain signs in the Premises and 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 Airport Systems Director or authorized
representative 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
Airport Systems Director or authorized representative.
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; provided, however, any and all flight simulators
and other equipment used in the operation of Lessee's business shall not be
deemed a fixture under this Lease and shall not, under any circumstances,
automatically become the property of Lessor. Upon the termination of this Lease,
Lessee shall have the express right to remove any and all flight simulators,
equipment, furniture, appliances, supplies and electronics used in the operation of
Lessee's business prior to termination date. Any and all personal property
remaining on the Premises after the termination date becomes the property of the
Lessor.
12.2. Lessor reserves the right to tame 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.
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12.3. Lessor reserves the right to temporarily close 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 the event any such
closure renders the Premises untenantable for more than thirty (30) days during
the Initial Term or any Renewal Term, Lessee shall have the right to terminate this
Lease whereupon all rights and obligations hereunder shall cease and terminate. In
the event Lessee elects not to terminate this Lease pursuant to this Section 12.3,
any and all rent payable under this Lease shall be abated from the time of such
closure until such time that the parties agree that the Premises are tenantable for
the operation of Lessee's business. In the event any such closure renders the
Premises untenantable for more than thirty (30) days during the term of any
monthAo-month tenancy provided for in Section 2.3 above, the Lease shall
automatically terminate whereupon all rights and obligations hereunder shall
cease and terminate. In this event, Lessor shall in no 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. If such an event
results in an interruption rendering the Premises untenantable for more than thirty
(30) days, Lessee shall have the right to terminate this Lease whereupon all rights
and obligations hereunder.shall cease and terminate. In the event Lessee elects not
to terminate this Lease pursuant to this Section 12.5, any and all rent payable
under this Lease shall be abated from the time of such closure until such time that
the parties agree that the Premises are tenantable for the operation of Lessee's
business. 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 �Mll 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.
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13. INSURANCE.
13.1. Tyyes of Coverage and Limits.
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 shad obtain the following insurance
coverage at the limits specified herein:
• Commercial General Liability:
$300,000,00 per occurrence
(including Products and Completed Operations)
In addition, Lessee shall be responsible for all insurance to any approved
construction, improvements, modifications or renovations on or to the Premises and for
personal property of Lessee or in Lessee's care, custody or control.
13.2. Adiustmen#s to Required Coverage and Limits.
Insurance requirements, including additional types and limits of coverage and
increased limits on existing coverages, are subject to change at Lessor's option, and
Lessee will accordingly comply with such new requirements within thirty (30) days
following notice to Lessee. Lessee shall give prompt written notice to Lessor of any
damage caused to the Premises by fire or other casualty. In the event the Premises are
damaged or destroyed by fire or other casualty, and Lessor does not elect to terminate this
Lease as hereinafter provided, Lessor shall proceed with reasonable diligence to rebuild
and repair the Premises. In the event Lessor elects to terminate this Lease, all rent shall
be abated during the unexpired portion of this Lease, effective upon the date of the
occurrence of such damage.
Lessor's obligation to rebuild and repair under this Section 13.2 shall in any event
be limited to restoring the Premises to substantially the condition in which they existed
prior to such casualty, exclusive of any alterations, additions, improvements, fixtures and
equipment installed by Lessee. In the event that Lessor should fail to initiate such repairs
and rebuilding within ninety (90) days after the date upon which Lessor is notified of such
damage, Lessee may at its option terminate this Lease by delivering written notice of
termination to lessor as Lessee's exclusive remedy, whereupon all rights and obligations
hereunder shall cease and terminate.
Except as otherwise provided herein, Lessee agrees that during any period of
reconstruction or repair of the Premises, it will continue the operation of its business
within the Premises to the extent practicable. During the period from the occurrence of
the casualty until the date Lessee re -opens for business, rent and all other charges
hereunder shall be reduced to such extent as may be fair and reasonable under the
circurrastances.
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13.3. 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.
13.4. Additional 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. In addition,
Lessee agrees that no material changes in coverage, including, but not limited to,
cancellation, termination, nonrenewal or amendment, shall be made to any such policy
without thirty (30) days' prior written notice to Lessor.
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 r•espondeat 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. INDEMNIFICATION.
LESSEE HEREBY ASSU�%IES ALL LIABILI7'YAND RESPONS'IBILI7'Y FOR PROPERTY
LOSS, PROPERTY DA �IAGE AND/OR PERSONAL It:iURY OF ANC' KL'D, INCLUDING
DEATH, TO ANYAND ALL PERSONS, OF ANY KIND OR CHARACTER, WHETHER REAL
OR ASSERTED, ARISING OUT OF OR IN CONNECTION WITH THE CISE OF THE AIRPORT
UNDER THIS LEASE OR WITH THE LL4SING, rWINTENANCE, USE, OCCUPANCY,
EVIL, OTENCE OR LOCATION OF THE PREMISES, EXCEPT TO THE EXTENT CA USED BY
THE NEGLIGENT ACTS OR O.,WIS'SIONS OR IA)rYE!'VTIOVAL <WISCONUUCT O. ' LESSSOR..
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 CLAIM! OR LAWL UITS F'OR EITHER
PROPERTY DAMAGE OR LOSS (INCLUDING ALLEGED DAM,4GE OR LOSS TO LESSEE,
1; [, USIA ESS' AND ANY RESULTING LOST PROF ITS) AND/OR PERSO irAL INJ 'R I
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INCLUDING DEATH, TO ANY AND ALL PERSONS, OF ANY KIND OR CHARACTER,
WHETHER REAL OR ASSERTED, ARISING OUT OF OR IN CONNECTION WITH ITS USE
OF' THE AIRPORT UNDER THIS LEASE OR WITH THE LEASING, A11AINTEN4NCE, USE,
OCCUPANCY, E_VIST ENCE OR LOCATION OF THE PRE111SES, EXCEPT TO THE EXTENT
CA USED BY THE NEGLIGENT ACTS OR OMISSIONS OR INTENTIONAL MISCOND UCT OF
LESSOR.
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, OR
PATRONS, EXCEPT TO THE EXTENT CAUSED BY THE NEGLIGENT ACTS OR
OMISSIONS OR INTENTIONAL MISCONDUCT OF LESSOR.
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, EVCEPT TO THE EXTENT CAUSED BY THE NEGLIGENT
ACTS OR OMISSIONS OR INTENTIONAL MISCOND UCT OF LESSOR,
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.
Upon termination of this Lease, all i7ghts, powers and privileges granted to Lessee
hereunder shall cease and Lessee shall immediately vacate the Premises. Lessee agrees that it
will return the Premises and all appurtenances and improvements thereon in good order and
repair and in the same condition as existed at the time this Lease was entered into, subject to
ordinary wear and tear, Lessor shall have the immediate right to take full possession of the
Premises and to remove any and all parties remaining on any part of the Premises without further
legal process and without being liable for trespass or any other claim. Subject to the limitations
of Section 12.1, Lessor shall also have the right to remove any and all fixtures or equipment that
may be found within or upon the premises without being liable therefor. 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 lawful termination of the Lease or any act incident to Lessor's
assertion of its right to terminate this Lease in accordance with the terms hereof.
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18. NOTI( ES.
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:
City of Fort Worth
Aviation Department
4201 North Main St., Suite 200
Fort Worth, Texas 76106-2749
To LESSEE:
Rich Aviation Services
4201 North Main St., Suite 100
Fort Worth, Texas 76106-2749
19. ASSIGNMENT AND SUBLETTING.
For All Other Matters:
City of Fort Worth
Aviation Department
4201 North Main St., Suite 200
Fort Worth, Texas 76106-2749
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.
Z0. LIENS BY LESSEE.
Lessee acknowledges that it has no authority to engage in any act ar to make any contract
which may create or be the foundation for any lien upon the Premises or interest in the property
A Lessor. If any such purported lien is created or filed, Lessee, at its sole cost and expense, shall
Iiquidate 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.
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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, URDINANCES,IZULES 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 Airport Systems Director; 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, disability, sex, sexual orientation, transgender, gender
identity or gender expression. 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, disability, sex, sexual orientation, transgender, gender
identity or gender expression.
Lessee agrees to furnish its accommodations and to pi ice 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 nondiscrimination covenant by
Lessee, its personal representatives, successors in interest or assigns, Lessee agrees to indemnify
Lessor and hold Lessor harmless.
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24. LICENSES AND PERIVIITS.
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. 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 in Tarrant County, Texas, or the United States District Court for the Northern District of
Texas, Fort Worth Division. This Lease shall be construed in accordance with the Iaws of the
State of Texas.
28. ATTORNEYS' FEES.
In the event there should be a breach or default under any provision of this Lease and
either party should retain attorneys or incur other expenses for the collection of rent, fees or
charges, or the enforcement of performance or observances of any covenant, obligation or
agreement, Lessor and Lessee agree that 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 afi'ected
or unpaired.
30. FORGE NIAJEiJRE.
Lessor and Lessee shall exercise their reasonable efforts 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, strifes, lockouts, national disasters, wars, riots, material or labor restrictions by
Tcrmartiat 9uiidsng C?ffise Leas Agreemeni
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Page t 3 of f G
any governmental authority, transportation problems and/or any other cause beyond the
reasonable control of the parties. In the event a force majeure event renders the Premises
untenantable for more than thirty (30) days and no reasonable alternative premise is available,
Lessee shall have the right to terminate this Lease whereupon all rights and obligations hereunder
shall cease and terminate. In the event Lessee elects not to terminate this Lease pursuant to this
Section 30, and any and all rent payable under this Lease shall be abated from the time of such
force majeure event until such time that the parties agree that the Premises are tenantable for the
operation of Lessee`s business.
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 of Lessor.
[SIGNATURE PAGES TO FOLLOW]
i'enatirrao Builriir��l3��;� Le;�e l�breern�rtt
�?�.acs� Cir*� oi� Fcr�r �rvt-�rth u� Rich !�c�irrtiun `;es�ice,
WITNESS WHERE F, the parties hereto have executed this Agreement in multiples
on this theQA''day of .20100
CITY OF FORT WORTH:
4119
By:C 4v�
Fernando Costa
Assistant City Manager
Date: 6117/0
STATE OF TEXAS §
COUNTY OF TARRANT §
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
Fernando Costa 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
0A/ 62 , 2010.
EVONIA DANIELS
MY COMMISSION EXPIRES
July 10, 2013
APPROVED AS TO FORM
ANll LEGALITY: �_
By:
Sanders
Assistant City Attorney
MSC: C- a4.a" ,
'Permirff( E3teilding C)flice Luse �l�rtement
benv2en Cir} ot'Fort t4'(�r?li & Rieh A�:ixtit�n 5eraices
I'a�e t 5 of 16
otary Public in and for the State of Texas
ATTEST:
Bv:
Marty flendrix
City Secretary
OFFfC1AL RECORD
CITY SECRETARY
FT. WORTH, TX J
LESSEE:
RICH AVIATION SERVICES, LLC
Date:
STATE OF TEXAS §
COUNTY OF I'' §
ATTEST:
BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on
this day personally appeared Shawn Rich, Manager of Rich Aviation Services, LLC, 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 Shawn Rich on behalf of Rich Aviation Services, LLC and that he
executed the same as the act of Rich Aviation Services, LLC for the purposes and consideration
therein expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this f� day
, 20105
LESA MOKE
My Commission Expires
May 16, 2014
Terminal BuiWmg. OtTicc l.ea5e A�eement
between Citgof Fort W:rrih & Rieh �E•iatiun Strviu;s
Paz IFaFlS
Notary Public in acid for the State of Texas
Page 1 of 2
City of • •Texas
Mayor• Council Communication
COUNCIL ACTION2 Approved on 6/15/2010
DATE: Tuesday, June 151 2010 REFERENCE NO.: **C-24268
LOG NAME: 55FTW RICH AVIATION
SUBJECT:
Authorize the Execution of a Terminal Building Office Lease Agreement with Rich Aviation Services at Fort
Worth Meacham International Airport and Authorize the Execution of a Landlord Subordination Agreement
with Rich Aviation Services and Bank of Texas (COUNCIL DISTRICT 2)
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to execute:
1. A terminal building office lease agreement with Rich Aviation Services at Fort Worth Meacham
International Airport; and
2. A landlord subordination agreement with Rich Aviation Services and Bank of Texas.
DISCUSSION:
The Aviation Department has received a request from Mr. Shawn Rich, Owner of Rich Aviation Services,
to lease Suites 100, 102, 1021% and 105 consisting of 2,285 square feet of first floor office space in the
terminal building at Fort Worth Meacham Airport at a rate of $15.60 per square foot. This is in accordance
with the Aviation Department's Schedule of Rates and Charges. Mr. Rich desires to acquire this space for
corporate jet pilot simulator training. Staff is in favor of this request and feels that this would be an added
service to the terminal building.
Total revenue received from this lease will be $35,RAF; .00 per year, or $2,970.50 per month. Based on an
assumed start date of July 1, 2010 the revenue that will be received for the remainder of the Fiscal Year
2010 will $8,911.50. Rental rates shall be subject to an increase on October 1 st of any given year, based
on the then -current Schedule of Rates and Charges.
The term of the lease will begin on the date of execution and expire June 30, 2011. The lease will
automatically convert to a month -to -month unless either party notifies the other of its intent to cancel the
lease in accordance with its terms and conditions. All other terms and conditions will follow standard City
and Aviation Department policies.
Rich Aviation Services wishes to utilize personal property, including simulators, as collateral for a loan
from the Bank of Texas. The Bank of Texas has requested the City of Fort Worth execute a Landlord
Subordination Agreement to ensure its ability to retrieve said collateral should the loan go into default.
Staff is in favor of subordinating its lien position, as the equipment will be vital to the success of Rich
Aviation Services.
The property is located in COUNCIL DISTRICT 2.
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 under this agreement.
http://apps.cfwnet.org/ecouncil/printmc.asp?id=13240&print=true&DocType=Print 6/15/2010
Page 2 of 2
FUND CENTERS:
TO Fund/Account/C enters
PE40 491282 0551101
CERTIFICATIONS:
Submitted for City Manager's Office by:
Originating Department Head:
Additional Information Contact:
ATTACHMENTS
1. Accounting lnfo.pdf (CFW Internal)
FROM Fund/AccounuCenters
Fernando Costa (6122)
Kent Penney (5403)
Jonnie Huitt (5409)
http://apps.cfwnet.org/ecouncil/printmc.asp?id=13240&print—true&DocType=Print 6/15/2010