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HomeMy WebLinkAboutContract 40495-LS1 (2)LANDLORD SUBORDINATION AGREEMENT THIS LANDLORD SUBORDINAON AGREEWIN I (this "Agreement"), executed and delivered as of the .9t, day of , 2011, by and among the City of Fort Worth, a home rule municipal corporation situated in Tarrant County, Texas acting by and through Fernando Costa, its duly authorized Assistant City Manager (together with its successors and assigns, "Landlord'), William Mann Jr. Community Development Corporation, a Texas corporation, as Lender under the Loan Agreement referred to below (in such capacity, together with its successors and assigns, "Lender"), and Rich Aviation Services, LLC, a Texas limited liability company (together with its successors and assigns, "Tenant"). WITNES SETH: WHEREAS, Lender Ten tare parties or will hereafter join as parties to a certain Loan Agreement dated as ofke 'I , 2011 (as from time to time amended, restated, supplemented, renewed, extended or otherwise modified, the "Loan Agreement") and certain other Loan Documents (each term as defined in the Loan Agreement; collectively, the Loan Agreement and the Loan Documents are referred to herein as the "Credit Agreements"), providing for loans to or for the benefit of Tenant; WHEREAS, Tenant is the tenant under a certain Terminal Building Office Lease Agreement, attached hereto as Exhibit "A" and incorporated herein by reference (the "Lease"), between Tenant and Landlord covering the premises identified therein (the "Premises"); WHEREAS, to secure payment and performance of all of Tenant's obligations and liabilities under the Credit Agreements ("Tenant's Liabilities"), Tenant has granted or will grant to Lender a second priority security interest on all assets and equipment of Tenant (including, but not limited to, the aircraft flight simulators identified on Exhibit "B" hereto) (collectively, the "Collateral") located on the Premises; WHEREAS, Landlord wishes to lease and/or to continue to lease the Premises to Tenant and receive rental payments therefor pursuant to the Lease, and accordingly wishes for Tenant to remain in business and continue to operate the same; and WHEREAS, Tenant, to remain in business and continue to operate the same, may require loans and/or advances from Lender pursuant to the Credit Agreements, and Lender, as a condition precedent to continue making such loans and/or advances, has required that Landlord and Tenant execute and deliver this Agreement. NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 1. Landlord and Tenant represent and warrant that the Lease is presently in full force and effect and, to each party's knowledge, the Landlord is not in default thereunder, and the Tenant is not in default thereunder. OFFICIAL RECORD CITY SECRETARY To WORTH, TX 2. Landlord waives any right which Landlord now has or hereafter may have, under the laws of the State of Texas, or by virtue of the Lease, or any renewals, extensions, amendments, modifications, substitutions or replacements thereof ("New Lease"), or by virtue of Tenant's occupation of the Premises, to levy or distrain upon, for rent, in arrears, in advance or both or for any monetary obligation arising by reason of default under the Lease or any New Lease, or to claim or assert any lien, right, claim or title to any or all of the Collateral, which now is or hereafter may be located on the Premises. 3. Landlord recognizes and acknowledges that Lender's security interest in the Collateral, pursuant to the Credit Agreements, is superior to any lien, right or claim or title of any nature which Landlord now has or hereafter may have or assert in or to the Collateral by statute, the Lease, any New Lease, any other agreement or otherwise. 4. Except as provided herein, Lender acknowledges and agrees that this Agreement and the rights granted herein to Lender shall not in any way impair or otherwise affect in any way Landlord's rights with respect to collection of rent and/or any security deposit Landlord may hold under the Lease. In addition, during the term of the Lease, Tenant agrees to provide Landlord with notice of the removal or additional of any equipment to the Premises which is valued at Four Thousand and No/100 Dollars ($4,000.00) or more. 5. Landlord agrees that Lender and/or its authorized representatives may, after Tenant defaults on any of its Obligations to Lender under any or all of the Credit Agreements and upon prior notice to Landlord, enter upon the Premises at any time or times, during normal business hours, to inspect or to remove the Collateral therefrom, without charge, except that, in the event of removal of the Collateral, Lender shall be bound by and obligated to comply with any provision in the Lease (or any New Lease) regarding such removals and shall be responsible for reimbursement for any physical damage to the Premises caused by such removal. Landlord shall reasonably cooperate and will not hinder, interfere with or unreasonably delay Lender's actions in enforcing its liens and remedies with respect to the Collateral and in such case Landlord will make no claim or demand whatsoever against the Collateral. 6. This Agreement shall continue in full force and effect until Tenant's Liabilities are paid and satisfied in full and all lending commitments under the Credit Agreements have terminated. (Signature Page Follows) (Signature Page to Landlord Subordination Agreement) IN WITNESS WHEREOF, this Landlord Waiver has been duly executed and delivered as of the day and year specified at the beginning hereof. LANDLORD: CITY OF FORT WORTH 2a Lj Name: Fernando Costa Title: Assistant City Manager APPROVED AS TO FORM AND LEGALITY: AA, rz L�AozAA,:: Name: Charlene Sanders Title: Assistant City Attorney TENANT: RICH AVIATION SERVICES, LLC a Texas limited liability company LENDER: kz ndrax7 �antract-. Authorizatiora A - e� o�� WILLIAM MANN JR COMMUNITY DEVELOPMENT CORPORATION, a Texas corporation L t� �--I �r Name: Alicia Fannon Title: Executive Director OFFICIAL. RAC®ItD CITY SECR�TAIi�" FTo WORTHTX EXHIBIT TERMINAL BUILDING OFFICE LEASE AGREEMENT See attached CITY sECRErARY CONTRACT NO.,...„ �� r 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 corporation 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. Z,285 square fee# of carpeted float 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 Initiai Term of this Lease shall Date"} and expire at 11:59 p.m., June 30, herein (the "Initial Term"). 2.2. Renewals. commence an July 1, 2010 (the "Effective 2011, unless terminated earlier as provided If Lessee performs and abides by all provisions and conditions of this Lease, Lessee shall have three (3) successive options to extend the term of this 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.I hereof; provided that any exercise of an option to renew shall be delivered to Lessor no later than ninety (40) days prior to the expiration of the then current term. 2.3 Option for Month to Month Tenancy. Upon the expiration of the Initial Term and in the event Lessee refuses to exercise its initial renewal option pursuant to Section 2.2, Lessee shall have the option to continue to Terminat Building Office Lease Agreement bettiveen City of Fort Worth &: Rich Aviation Services Fago 1 of 16 06-24-10 P02:13 1N 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, Lessor will refund 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 ]eased 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. 5. MAINTENANCE AND REPAIRS. 6.1. Maintenance and Repairs by Lessor. Lessor shall provide janitorial services to the Fremises 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. b.2. Maintenance and Repairs 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 ��dll not make or suffer any 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 rerminat Budding Office (.ease Agreement between City of Fart Worth &Rich Aviation Services Page3uf16 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 ar 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 Fort Worth and all other applicable laws. 1 Q. USE OF PREMISES. Lessee agrees to use the Premises exclusively for aviation or aviation -related commercial activities including, but nat limited to, aircraft instruction, flight simulator training and aircraft rental. It is specifically agreed and stipulated that the following concessions are 'erminal Building Ofcc Lease Agreement bemccri City of fort Worth & Rich Aviation Scrvices Page 5 of 16 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 month4o-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 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. l'crminai Huilding Office Lease Agreement hettiveen City of Fort Worth &Rich Aviation 5ervtces Page 7 of f 6 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. Additions! Requirements. Lessee snail 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. lA. INDEPENDENT CONTRACTOR. It is expressly understood and agreed the# 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 shalt be construed as the creation of a partnership or joint enterprise between Lessor and Lessee. 15. INDEMNIFICATION. LESSEE HEREBYASSUMES ALL LIABILITYAND RESPONSIBILITY FOR PROPERTY LOSS, PROPERTY DAMAGE AND/OR PERSONAL IIv;7URY OF ANY KIrVD, INCLUDING DEATH, TO ANYAND 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, M411VTENANCE, USE, OCCUPANCY, EXISTENCE OR LOCATION OF THE PREMISES, EXCEPT TO THE EXTENT CAUSED BY THE NEGLIGENT ACTS OR OMISSIONS OR INTENTIONAL MISCONDUCT OF LESSOR.. 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 3`SINESS AND ANY RESULTING LOST PROFITS) AND.'OR PERSONAL INJURY, "Cermmal Building Officc E.essc Agreement between City of Fort Worth &Rich Aviation Services Page 3 of 15 18. NQTICES. 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 City of Fort Worth Aviation Department Aviation Department 4201 North Main St., Suite 200 4201 North Main St., Suite 200 Fort Worth, Texas 76106-2749 Fort Worth, Texas 76106-2749 To LESSEE: Rich Aviation Services 4201 North Main St., Suite 100 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. 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 far any lien upon the Fremises 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. TerminaE Building (3liice lzase Agreement betwetn City- of fort worth &Rich Aviation Services Page 1 I of Ib 2�. 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. 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 laws 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 fox 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 affected or impaired. 30. FORCE MAJEURE. 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, strikes, lockouts, national disasters, wars, riots, material or labor restrictions by Terminal Building Office Lease Agreement between Citv of Fort Worth & Rich Aviation Services Psgc 13 of 16 WITNESS WHEREOF, the parties hereto have executed this Agreement in multiples an this the 0,4*fftff" day of _, 2010. CITY OF FORT WORTH: By: Fernando Costa Assistant City Manager Date: 4 ;/17!a STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigied authority, a Notary Public in and for the Sta#e 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. GylyEN UNDER MY HAND AND SEAL OF OFFICE this % day , 2010. sry EYONlADANfRS MY COMMISSION EXPIRES July 10, 2013 APPROVEii AS TO FORM AND GALITY: By: aa Charlene Sanders Assistant City Attorney 'rerntinal E3uilding €)Rice l�tase �cn cmettt between City of"Fart Worth &Rich Aviation Services Page 15 of 16 Public in and for the State of Texas ATTEST: By: FxhilAt •A• Ib 0 W w_ _ O' rn 4 4 C G V? m n S 4 N CITY OF FORT WORTH AVIATION DEPARiTAENT 'L FORT WORTH MEA TAM * F EFMRM Y NAL AIRPORT „�,o oo 1 �+atHamtr;awsr>ztEr•rrnrwortntivvsia+a EA"1151I G6D99 King Air B200 Flight Training Device Part Number: A9000034 Serial Number: 7000 Cessna Citation Flight Training Device Part Number: 110111002 Serial Number: 7001 Page 1 of 2 COUNCIL ACTION: Approved on 3/1/2011 DATE: Tuesday, March 01, 2011 LOG NAME: 55FTW RICH AVIATION LSA #2 REFERENCE NO.: **C-24749 SUBJECT: Authorize Execution of a Landlord Subordination Agreement with Rich Aviation Services, LLC, and William Mann Jr. Community Development Corporation for Two Flight Simulators at Meacham International Airport (COUNCIL DISTRICT 2) RECOMMENDATION: It is recommended that the City Council authorize the City Manager to execute a landlord subordination agreement with Rich Aviation Services, LLC, and William Mann Jr. Community Development Corporation for the flight simulators at Meacham International Airport. DISCUSSION: On June 15, 2010, (M&C C-24268) the City Council authorized the execution of 1) a terminal building office lease agreement for Suites 100, 102, 102A, and 105 with Rich Aviation Services, LLC, at Fort Worth Meacham International Airport. This space consisted of 2,285 square feet of first floor office space; and 2) a landlord subordination agreement with Rich Aviation Services, LLC, and Bank of Texas. The Bank of Texas requested the City of Fort Worth execute a landlord subordination agreement to ensure its ability to retrieve the collateral should the loan go into default. The collateral utilized for this loan included a Precision Flight Controls Modular Flight Deck Simulator, a Digital King Air 200 Flight Simulator, and a Cessna Citation V Flight Simulator. On November 16, 2010, (M&C C-24599) the City Council authorized the execution of a terminal building lease agreement for Suites 101 and 101A with Rich Aviation Services, LLC, for an additional 248 square feet of first floor office space. The Aviation Department has received at request from Mr. Shawn Rich, Owner of Rich Aviation Services, LLC, to execute a second landlord subordination agreement. Rich Aviation Services, LLC, is expanding its ability to provide corporate jet pilot simulator training and wishes to utilize personal property, including simulators, as collateral for a loan from the William Mann Jr. Community Development Corporation. The William Mann Jr. Community Development Corporation has requested the City of Fort Worth execute a landlord subordination agreement to ensure its ability to retrieve the collateral should the loan go into default. The collateral utilized for this loan includes a Digital King Air 200 Flight Simulator and a Cessna Citation V Flight Simulator. Staff is in favor of subordinating its lien position, as the equipment will be vital to the continued success of Rich Aviation Services, LLC. The property is located in COUNCIL DISTRICT 2. FISCAL INFORMATION /CERTIFICATION: The Financial Management Services Director certifies that this action will have no material effect on City funds. FUND CENTERS: TO Fund/Account/Centers FROM Fund/Account/Centers http://apps.cfwnet.org/ecouncil/printmc.asp?id=14816&print=true&DocType=Print 3/2/2011 Page 2 of 2 CERTIFICATIONS: Submitted for City Manager's Office by. Originating Department Head: Additional Information Contact: ATTACHMENTS No attachments found. Fernando Costa (6122) Kent Penney (5403) Jonnie Huitt (5409) http://apps.cfwnet.org/ecouncil/printmc.asp?id=14816&print=true&DocType=Print 3/2/2011