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Home My WebLink AboutContract 42000 (2)City Secretary Contract Number AGREEMENT TERMINATING LEASE Lit (2) keicti FORT WORTH MEACHAM INTERNATIONAL AIRPORT LEASE SITE 39N This AGREEMENT TERMINATING LEASE ("Agreement") is made and entered into by and between the CITY OF FORT WORTH ("Lessor"), a home rule municipal corporation organized under the laws of the State of Texas, acting by and through Fernando Costa, its duly authorized Assistant City Manager and Westgrove Asset Management, LLC a Nevada limited liability corporation, acting by and through Tohnni Jones, its Manager ("Lessee"). RECITALS The following introductory provisions are true and correct and form the basis of this Agreement: A. Lessor previously entered into an unimproved ground lease agreement at Meacham International Airport (the "Airport") styled as City Secretary Contract No. 17700 with Page Avjet Corporation, as amended and assigned by City Secretary Contract Nos. 21746, 22134, 24299, 24300, 24301, 27045, 28992, 33043, and 33517 ("Previous Lease"). Lessee is the assignee under City Secretary Contract No. 33517. Lessee entered into a month -to -month lease with MAV Aircraft Services, Inc. The sublease between Lessee and MAV Aircraft Services, Inc. was terminated in July 2009. B. Lessee has agreed to waive and relinquish all of its right, title and interest as Lessee in the Previous Lease. C. It is the intent of the Lessor and Lessee to terminate the Previous Lease in order that Lessor may enter into a new lease with Leading Edge Completions, LLC ("New Lessee") OFFICIAL RECORD CITY SECRETARY ad WORTH .TH9TX tl � L� J AGREEMENT 1. TERMINATION OF PREVIOUS LEASE. The Previous Lease is hereby terminated effective as of August 1, 2011 (` Effective Date"). However, such termination shall not constitute (i) a release by one party or any liability accruing or obligation to indemnify under the Previous Lease or (ii) a waiver of one party to enforce any unperformed duties or obligations of the other under the Previous Lease. 2. SURRENDER OR PREMISES. No later than 11:59 p.m of the Effective Date (unless otherwise agreed between Lessee and New Lessee), Lessee shall vacate the leased premises and deliver all keys to New Lessee. 3. NOTICES TO LESSEE AFTER EFFECTIVE DATE. All notices to Lessee after the Effective Date shall be addressed as follows: Westgrove Asset Management, LLC ATTN: Tohnni Jones 5834 Buffridge Trail Dallas, Texas 75252 [signature pages follow] Agreement Terminating Lease Meacham International Airport Lease Site 39N 2 IN WITNESS WHEREOF, the parties hereto have executed this Agreement in multiples on this the CA day of La 1,2011. CITY OF FORT WORTH: By: �G'Gs��.le �..�K.-. Fernando Costa Assistant City Manager Date: 7/40// 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 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. GIVEN UNDER MY HAND AND SEAL OF OFFICE this , 2011. APPROVED AS TO FORM AND LEGALITY: By.kiskittealtsseA, Charlene Sanders Assistant City Attorney M&C: e Approved: 1 \ ZI 1_01/4 Agreement Terminating Lease Meacham International Airport Lease Site 39N • /Mil t/ ems/ Aneet day tary Public in and for the State of Texas ATTEST: By: Marty Hendrix City Secretary OFFICIAL RECORD CITY SECRETARY FT. WORTH, `L7 1„ 4 ‘401t CI) not QC) CI 0 ijeFt‘.1.1 gl \ ‘•ti d' (Q .� O �; OO Ire) ae- C36 )16% Westgrove Asset Management, LLC ATTEST: By: Tohnni Jones Manager a Date: STATE OF TEXAS COUI\ TY OF /A2,Qgi✓r° s BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared Tohnni Jones, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that the salve was the act of Westgrove Asset Management, LLC and that she executed the same as the act of Westgrove Asset Management, LLC for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this day , 2011. - • • a a • • - 5•1• :-% JONNIE RENEE' I--IUITT Notary Public, State of Texas My Commission Expires May 20, 2014 Agreement Terminating Lease Meacham International Airport Lease Site 39N • Not ` y Public in and for the State of Texas 4 M&C Review Page 1 of 2 FORT WORTII COUNCIL ACTION: Approved on 7/12/2011 DATE: CODE: C SUBJECT: 7/12/2011 REFERENCE NO.: C-25008 LOG NAME: TYPE: NON -CONSENT PUBLIC NO HEARING: Authorize the Termination of a Ground Lease Agreement with Westgrove Asset Management and the Execution of a Ground Lease Agreement with Leading Edge Completions LLC, for Lease Site 39N, Consisting of 370,940 Square Feet of Ground Space and a 69,490 Square Foot Hangar at Fort Worth Meacham International Airport (COUNCIL DISTRICT 2) 55FTW LEADING EDGE RECOMMENDATION: It is recommended that the City Council authorize the City Manager to: 1. Terminate City Secretary Contract No. 22134, M&C 15536, Amendment No. 1, City Secretary Contract No. 24299, M&C C-16869, Amendment No. 2, City Secretary Contract No. 27045, M&C C- 18490 and Consent to Assignment City Secretary Contract No. 33517, M&C C-21213 with Westgrove Asset Management, LLC, for Lease Site 39N, consisting of 370,940 square feet of ground space and a 69,490 square foot hangar Fort Worth Meacham International Airport. 2. Execute a Ground Lease Agreement with Leading Edge Completions, LLC, for Lease Site 39N at Fort Worth Meacham International Airport. DISCUSSION: Westgrove Asset Management is the current lessee of Lease Site 39N, consisting of 370,940 square feet, which includes a 69,490 square foot hangar at Fort Worth Meacham International Airport. Westgrove obtained the leasehold interest from Eagle One Asset Holdings, Inc. A Consent to Assignment, City Secretary Contract No. 33517, was approved by City Council on December 20, 2005 M&C C-21213 for which the terms and conditions of the original lease, City Secretary Contract N o. 22134, remained in effect along with its two corresponding Amendments City Secretary Contract N os. 24299 and 27045. Leading Edge Completions, LLC, has proposed to purchase the leasehold interest from Westgrove Asset Management In doing so, Leading Edge has made a request to City staff to terminate City S ecretary Contract No. 22134 and its corresponding amendments in order to effectively establish a new lease. City staff finds no issue with this request The facility will be used as an aircraft painting facility offering aircraft painting for all facets of the commercial airline industry including cargo, regional, international, leasing, major and national air carriers. Leading Edge is the largest aircraft painting company in the world and is focused on providing the highest quality commercial aircraft painting at a price which provides value above and beyond the customer's expectations. The initial term of the lease will be effective August 1, 2011 through July 31, 2031. This lease will generate estimated revenue of $137,000.00 per year or $11,416.67 per month Rental rates shall be subject to an increase on October 1 of any given year to reflect the upward percentage change, if any, in the Consumer Price Index for the period since the last adjustment, as described in the Schedule of Rates and Charges in effect at that time. All agreement terms will be in accordance with established City and Aviation Department policies. http://apps.cfwnet.org/council_packet/mc review.asp?ID=15542&councildate=7/12/2011 7/13/2011 M&C Review Page 2 of 2 Upon the expiration of the initial term of this lease, there will be two consecutive options to renew for two additional successive terms at 10 years each. Should the initial option to extend be exercised, an appraisal of the fair market value of the Premises, to include the improvements, shall be conducted to establish a. hangar rate in addition to the then current ground rate as described in the Schedule of Rates and Charges in effect at that time. The appraisal process will also be used if the second option is exercised. 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. TO Fund/Account/Centers FROM Fund/Account/Centers PE40 491052 0551101 $137,000.00 Submitted for City Manager's Office by: Fernando Costa (6122) Originating Department Head: Kent Penney (5403) Additional Information Contact: Jonnie Huitt (5409) ATTACHMENTS http://apps.cfwnet org/council_packet/mc review.asp?ID=15542&councildate=7/12/2011 7/13/2011