HomeMy WebLinkAboutContract 45486 (2)CITY
FORT WORTH MEACHAM INTERNATIONAL AIRPORT
GROUND LEASE AGREEMENT
LEASE SITE 21N
151 TEXAS WAY
This GROUND LEASE AGREEMENT ("Lease") 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 TEXAS JET, INC. ("Lessee"), a Texas corporation, acting by and
through Reed Pigman, Jr., its duly authorized President.
RECITALS:
WHEREAS, on April 13, 2001, Texas Jet, Inc. entered into City Secretary Contract No.
26680, a Ground Lease Agreement for Lease Sites 21N and 31N, consisting of a total of 78,105
square feet of ground space which includes two hangars, hangar 21N is approximately 14,265.7
square feet and hangar 31N is approximately 11,760 square feet, at Fort Worth Meacham
International Airport ("Current Lease"); and
WHEREAS, the Current Lease contains a thirty (30) year initial lease term that will expire
on September 30, 2030, with two (2) consecutive rights of first refusal to renew the Lease for two
(2) additional successive terms of five (5) years each ; and
WHEREAS, Hangar 21N has exceeded its useful life and has become functionally obsolete
in handling larger modern aircraft and Lessee has requested permission to demolish it and build a
27,000 square foot hangar in its place. In addition, the Lessee has requested to remove the 21N
lease site, comprised of 57,675.36 square feet, from the Current Lease and execute a new lease for
Lease Site 21N in order to facilitate rebuilding efforts; and
WHEREAS, in order to accommodate the placement of the new hangar, additional carports
and a car storage facility, an additional 38,156.64 square feet of ground space is needed to the east
of lease site 21N boundaries; and
WHEREAS, Lessee has requested, and Lessor has agreed, to execute a new ground lease
agreement.
1. PROPERTY LEASED.
Lessor hereby demises to Lessee 95,832 square feet of ground space ("Ground") at Fort
Worth Meacham International Airport ("Airport") in Fort Worth, Tarrant County, Texas,
identified as Lease Site 21N, also known as 151 Texas Way, ("Premises"), as shown in
Exhibit "A", attached hereto and hereby made a part of this Lease for all purposes.
Texas Jet, Inc. - Lease Site 21N
Ground Lease Agreement
Meacham Intemational Airport
Page 1 of 23
RECEIVED APR - 8 2014
OFFICIAL RECORD
CITY' SECRETARY
FT. WORTH, TX
2. TERM OF LEASE.
2.1. Initial Term.
The initial term of the Lease ("Initial Term") shall commence at 12:00 a.m. on
April 1, 2014 (` Effective Date") and expire at 11 59 P.M. on March 31, 2044
unless terminated earlier as provided herein.
2.2 Renewals.
If Lessee performs and abides by all provisions and conditions of this Lease, upon
expiration of the Initial Term of this Lease, Lessee shall have two (2) options to
renew for an additional five (5) year term each ("Renewal Term"). In order to
exercise an option to renew, Lessee shall notify Lessor in writing of its desire to
renew this Lease no less than ninety (90) days and no more than one hundred eighty
(180) days prior to the expiration of the Initial Term.
2.3. Holdover.
3. RENT.
If Lessee holds over after the expiration of the Initial Term, this action will create a
month -to -month tenancy. In this event, for and during the holdover period, Lessee
agrees to pay all applicable rentals, fees and charges at the rates provided by
Lessor's Schedule of Rates and Charges or similarly published schedule in effect at
the time.
3.1. Ground Rate.
Lessee shall commence the payment of rent for the Ground on the Effective Date.
Lessee hereby promises and agrees to pay Lessor, as annual rent for the Ground,
Thirty Thousand Six Hundred and Sixty Six Dollars and Twenty Four Cents
($30 666 24), at a rate of Thirty -Two Cents ($0.32) per square foot, payable in equal
monthly installments of Two Thousand Five Hundred Fifty Five Dollars and Fifty
Two Cents ($2,555.52).
3.2. Rate Adiustments.
3.2.1. Consumer Price Index Adiustments.
The rental rates under this Lease are based on Lessor's current published
Schedule of Rates and Charges. Rental rates are subject to increase
beginning October 1, 2014, and on October 1st of any subsequent year during
the Initial Term, to reflect any upward change in the Consumer Price Index
Texas Jet, Inc. - Lease Site 21N
Ground Lease Agreement
Meacham International Airport
Page 2 of 23
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 (the "Annual Rent Adjustment");
provided, however, that Lessee's rental rates shall not exceed the then -
current rates prescribed by Lessor's published Schedule of Rates and
Charges for the type or types of property similar to the type or types of
property that comprise the Premises.
3.2.2. Five -Year Adjustments, Ground Rate.
In addition to the Annual Rent Adjustments, on October 1, 2019, and every
fifth (5th) year thereafter for the remainder of the term of the Lease, to
include the Renewal term, the Ground rental rate shall automatically be
adjusted to equal the then -current rates prescribed by the 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 Ground.
3.3. Payment Dates and Late Fees.
Monthly rent payments are due on or before the first (1st) day of each month.
Payments must be received during normal business hours by the due date at the
location for Lessor's Aviation Department set forth in Section 15. Rent shall be
considered past due if Lessor has not received full payment after the tenth (loth) day
of the month for which payment is due. Without limiting Lessor's termination
rights as provided by this Lease Lessor will assess a late penalty charge of ten
percent (10%) per month on the entire balance of any overdue rent that Lessee may
accrue
4. CONSTRUCTION AND IMPROVEMENTS.
4.1. Mandatory Improvements.
As additional security for this Lease, Lessee covenants and agrees that it shall
construct the improvements set forth below on the Premises owned by the City of
Fort Worth. The improvements approved shall be referred to as "Mandatory
Improvements", as referenced in Exhibit "B".
4.1.1. Lessee shall commence construction within six (6) months following the
execution of this Lease. Construction and issuance of a Certificate of
Occupancy of an approximately 27,000 square foot hangar and associated
apron shall be completed no later than eighteen (18) months after
construction commenced.
Texas Jet, Inc. - Lease Site 21N
Ground Lease Agreement
Meacham International Airport
Page 3 of 23
4.1.2. Lessee shall complete the Mandatory Improvements according to the Project
Schedule ( Schedule"), as identified in Exhibit "B-1". For each major task
on the Schedule, Lessee shall provide, at a minimum, a 24-hour advance
notice of commencement.
4.1.3. At the completion of construction, Lessee shall provide to the Lessor: a
copy of the Certificate of Occupancy, a complete set of Record Drawings
and/or As -Built Drawings in Adobe PDF and AutoCAD formats, and a
Summary of the total cost/value of the Mandatory Improvements.
Lessee shall fully comply with all provisions of this Section 4 in the performance of
any such Mandatory Improvements. Should construction not be completed as
evidenced by the issuance of a Certificate of Occupancy within the applicable time
period set forth above, Lessee shall be in default of this Lease and Lessor shall
terminate Lessee's rights to the Premises in its entirety.
In the event that Lessor and Lessee agree to deviate from the terms provisions,
specifications or conditions of this Lease in any way, an Amendment to the Lease
shall be signed and dated by both Lessor and Lessee and shall be attached to and
made a part of this Lease and shall supersede the previous terms, provisions, and
specifications as specifically identified. Upon issuance of the Certificate of
Occupancy Lessor shall take full title to the Mandatory Improvements on the
Premises.
The commencement and completion dates in this Section 4.1 are subject to the
provisions of Section 27 below, and any delay by reason of force majeure shall
result in a day -for -day extension of the period for performance, provided that the
party is diligently and continuously pursuing in good faith a remedy to the delay
during such time.
4.2. Mandatory Improvements Reimbursement - Asbestos Abatement.
Subject to the terms, provisions and conditions of this Section 4 2 , Lessor shall
make and Lessee shall accept a reimbursement of costs associated with Asbestos
Abatement. Reimbursement costs shall not exceed Fifteen Thousand and No
Dollars and Zero Cents ($15,000.00). Such reimbursement shall occur upon receipt
of Lessee's written application for reimbursement, as outlined in Exhibit "C".
Lessor agrees to reimburse the reasonable costs as evidenced by statements,
invoices, bills and other documents paid by the Lessee during the period of time for
which reimbursement is being requested. The Lessee shall request any changes to
the maximum allowable in writing to the Lessor, with the reasonable increase
evidenced by statements, invoices, bills and other documents
Texas Jet, Inc. - Lease site 21N
Ground Lease Agreement
Meacham International Airport
Page 4 of 23
Lessee shall comply with all federal, state, and local laws and requirements with
regard to asbestos abatement. In addition Lessee agrees to "owner" and "generator"
status with regard to asbestos and all other materials, wastes, substances or debris,
regulated under any federal, state or local law.
Lessee shall notify the Texas Department of State Health Services (TDSHS), and
with a courtesy copy to the City, prior to beginning any improvements in accordance
with TDSHS and all other applicable laws, statutes, regulations, and protocols.
In order to receive any and all reimbursements up to the total amount available,
Lessee shall conduct and complete the asbestos abatement according to all as
provided in Texas Administrative Code, Title 25, Chapter 295, Subchapters B and
C, and all other applicable laws related to asbestos .
4.2.1. Inspection Riuhts.
Lessor, through its officers, agents or employees, shall have the right at all
reasonable times:
4.2.1.1. To enter upon the Premises and inspect the progress of the asbestos
abatement to determine that the same is in continuity with all
requirements hereof; and
4.2.1.2. To examine copy and make extracts of the books, records, accounting
data and other documents, including, without limitation, all permits,
licenses, consents and approvals of all governmental authorities having
jurisdiction over Lessee, the asbestos abatement, or the Premises, and all
contractors and subcontractors supplying goods and/or services in
connection with the work of the asbestos abatement. Such books, records
and documents shall be made available to Lessor promptly upon written
demand therefor, and at the request of Lessor, Lessee shall furnish
Lessee with convenient facilities for such purposes. All contracts let or
amended by Lessee or its contractors after the date hereof relating to the
asbestos abatement shall require agreement to the foregoing inspection
rights, except where such rights have been waived by Lessor in wi iting.
It is expressly understood and agreed that Lessor shall have no duty to
supervise or to inspect the work of construction or any books and records
and that any such inspection shall be for the sole purpose of preserving
Lessor's rights hereunder. Failure to inspect the work or any part thereof
shall not constitute a waiver of any of the Lessors rights hereunder.
Inspection not followed by notice of default shall not constitute a waiver
of any default then existing; nor shall it constitute an acknowledgement
Texas Jet, Inc. - Lease Site 21N
Ground Lease Agreement
Meacham International Airport
Page 5 of 23
that there has been or will be compliance with the Plans or that the
abatement is free from defective materials or workmanship.
4.3. Discretionary Improvements.
In addition to the Mandatory Improvements, Lessee may, at its sole discretion,
perform additional modifications, renovations, improvements or other construction
work on or to the Premises (collectively, "Improvements") so long as it first
submits all plans, specifications and estimates for the costs of the proposed work in
writing and also requests and receives in writing approval from the Director of
Aviation or authorized representative ("Director") Lessor agrees to respond in
writing to Lessee's requests for approval within thirty (30) calendar days of receipt
of such requests. Lessee covenants and agrees that it shall fully comply with all
provisions of this Section 4 in the undertaking of any such Improvements. Lessor
shall take full title to any Improvements on the Premises upon the expiration or
earlier termination of this Lease, provided that trade fixtures shall remain the
property of Lessee and may be removed so long as Lessee repairs any damage
caused thereby.
4.4. Process for Approval of Plans.
Lessee's plans for Improvements shall conform to the Airport's architectural
standards and must also receive written approval from the City's Departments of
Planning and Development and Transportation and Public Works. All plans,
specifications and work shall conform to all federal, state and local laws,
ordinances, rules and regulations in force at the time that the plans are presented for
review.
4.5. Documents.
Lessee shall supply the Director with comprehensive sets of documentation relative
to any Improvement, including, at a minimum as -built drawings of each project.
As -built drawings shall be new drawings or redline changes to drawings previously
provided to the Director. Lessee shall supply the textual documentation in computer
format as requested by Lessor.
4.6. Bonds Required of Lessee.
Prior to the commencement of any Improvement, Lessee shall deliver to Lessor a
bond, executed by a corporate surety in accordance with Texas Government Code,
Chapter 2253, as amended, in the full amount of each construction contract or
project The bonds shall guarantee (i) satisfactory compliance by Lessee with all
applicable requirements, terms and conditions of this Lease, including, but not
limited to, the satisfactory completion of the respective Improvements, and (ii) full
Texas Jet, Inc. - Lease Site 21N
Ground Lease Agreement
Meacham Intemational Airport
Page 6 of 23
payments to all persons, firms, corporations or other entities with whom Lessee has
a direct relationship for the construction of such Improvements.
In lieu of the required bond, Lessee may provide Lessor with a cash deposit or an
assignment of a certificate of deposit in an amount equal to 125% of the full amount
of each construction contract or project. If Lessee makes cash deposit, Lessee shall
not be entitled to any interest earned thereon. Certificates of deposit shall be from a
financial institution in the Dallas -Fort Worth Metropolitan Area which is insured by
the Federal Deposit Insurance Corporation and acceptable to Lessoi. The interest
earned on the certificate of deposit shall be the property of Lessee and Lessor shall
have no rights in such interest. If Lessee fails to complete the respective
Improvements, or if claims are filed by third parties on grounds relating to such
Improvements, Lessor shall be entitled to draw down the full amount of Lessee's
cash deposit or certificate of deposit and apply the proceeds to complete the
Improvements or satisfy the claims, provided that any balance shall be remitted to
Lessee.
4.7. Bonds Reauired of Lessee's Contractors.
Prior to the commencement of any Improvement, Lessee's respective contractor
shall execute and deliver to Lessee surety performance and payment bonds in
accordance with the Texas Government Code Chapter 2253, as amended, to cover
the costs of all work performed under such contractor's contract for such
Improvements Lessee shall provide Lessor with copies of such bonds prior to the
commencement of such Improvements. The bonds shall guarantee (i) the faithful
performance and completion of all construction work in accordance with the final
plans and specifications as approved by Lessor and (ii) full payment for all wages
for labor and services and of all bills for materials, supplies and equipment used in
the performance of the construction contract. Such bonds shall name to both Lessor
and Lessee as dual obligees If Lessee serves as its own contractor, Section 4.4 shall
apply.
4.8. Releases by Lessor Upon Completion of Construction Work.
Lessor will allow Lessee a dollar -for -dollar reimbursement from its cash deposit
account or reduction of its claim upon Lessor's certificate of deposit upon (i), where
Lessee serves as its own contractor, verification that Lessee has completed
construction work or (ii), where Lessee uses a contractor, receipt of the contractor's
invoice and verification that the contractor has completed its work and released
Lessee to the extent of Lessee's payment for such work, including bills paid,
affidavits and waivers of liens, except for mandatory improvements as authorized
under Section 4.2.
Texas Jet, Inc. - Lease Site 21N
Ground Lease Agreement
Meacham International Airport
Page 7 of 23
5. USE OF PREMISES.
Lessee hereby agrees to use the Premises solely for aviation -related purposes only and
strictly in accordance with the terms and conditions of this Lease. Lessee hereby covenants
and agrees that it will not restrict aircraft, vehicle, or pedestrian ingress or egress to Hangar
31N Lessee shall have the right to sublease portions of the Premises, including individual
hangars, to various third parties (' Sublessees") for aviation -related purposes only under
terms and conditions acceptable to and determined by Lessee. Lessor hereby grants
permission to Lessee to sublease all or a portion of the Premises to Texas Jet, Inc. All
written agreements executed by Lessee to Sublessees for any portion of the Premises shall
contain terms and conditions that (i) do not conflict with Lessee's duties and obligations
under this Lease; (ii) incorporate the terms and provisions of this Lease; (iii) restrict the use
of the Premises to aircraft storage or other aviation or aviation -related purposes acceptable
to Lessor and (iv) treat users of the same or substantially similar facilities on reasonable
terms and without unjust discrimination. Lessee shall use a standard lease form for all
Sublessees and shall submit a copy of such standard lease form, to the Director prior to
Lessee's execution of its first lease and from time to time thereafter following any material
changes to such lease form Lessee may make non -material modifications to its standard
lease to the extent that such are not contrary to Lessor's Sponsor's Assurances. Lessee
hereby agrees to notify Lessor in writing when Lessee enters into any sublease for a period
greater than thirty one (31) days, with any business that is required by Lessor to obtain an
operating permit in accordance with Lessor's published Minimum Standards.
6. REPORTS, AUDITS AND RECORDKEEPING.
Lessee shall keep and maintain books and records pertaining to Lessee's operations of the
Premises at the Airport and other obligations hereunder in a manner satisfactory to Lessor's
Internal Auditor and at a location within the City of Fort Worth. Upon Lessor's request, and
as a result of an inquiry from the Federal Aviation Admmistration, and following reasonable
advance notice, Lessee will make such books and records available for review by Lessor
during Lessee's normal business hours Lessor, at Lessor's sole cost and expense, shall have
the right to audit such books and records in order to ensure compliance with the terms of
this Lease and the Sponsor's Assurances made by Lessor to the Federal Aviation
Administration.
7. UTILITIES.
Lessee, at Lessee's sole cost and expense shall be responsible for the installation and use of
all utility services to all portions of the Premises and for all other related utility expenses,
including, but not limited to, deposits and expenses required for the installation of meters.
Lessee further covenants and agrees to pay all costs and expenses for any extension,
maintenance or repair of any and all utilities serving the Premises. In addition, Lessee
agrees that all utilities, air conditioning and heating equipment and other electrically -
operated equipment which may be used on the Premises shall fully comply with Lessor's
Texas Jet, Inc. - Lease Site 21N
Ground Lease Agreement
Meacham International Airport
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Mechanical, Electrical, Plumbing, Building and Fire Codes ("Codes"), as they exist or may
hereafter be amended.
8. MAINTENANCE AND REPAIRS.
8.1. Maintenance and Repairs by Lessee.
Lessee agrees to keep and maintain the Premises in a good, clean and sanitary
condition at all times, reasonable wear and tear expected. Lessee covenants and
agrees that it will not make or suffer any waste of the Premises Lessee, at Lessee's
sole cost and expense, will make all repairs or replacements necessary to prevent the
deterioration in condition or value of the Premises, including, but not limited to, the
maintenance of and repairs to all hangars and other structures, doors, windows and
roofs, and all fixtures, equipment, hangar modifications and surrounding pavement
on the Premises Lessee shall be responsible for all damages caused by Lessee, its
agents, servants, employees, contractors, subcontractors, licensees or invitees, and
Lessee agrees to fully repair all such damages at Lessee's sole cost and expense.
Lessee agrees that all improvements, trade fixtures, furnishings, equipment and
other personal property of every kind or description which may at any time be on the
Premises shall be at Lessee's sole risk or at the sole risk of those claiming under
Lessee. Lessor shall not be liable for any damage to such property or loss suffered
by Lessee's business or business operations, which may be caused by the bursting,
overflowing or leaking of sewer or steam pipes, from water from any source
whatsoever, or from any heating fixtures, plumbing fixtures, electric wires, noise,
gas or odors, or from causes of any other matter.
8.2. Compliance with ADA.
Lessee, at its sole cost and expense, agrees to keep and maintain the Premises in full
compliance at all times with the Americans with Disabilities Act of 1990, as
amended ("ADA '). In addition, Lessee agrees that all improvements it makes at
the Airport shall comply with all ADA requirements.
8.3. Inspections.
8.3.1. Lessor shall have the right and privilege, through its officers, agents,
servants or employees, to inspect the Premises. Except in the event of an
emergency, Lessor shall conduct such inspections during Lessee's ordinary
business hours and shall use its best efforts to provide Lessee at least two (2)
hours' notice prior to any inspection.
8.3.2. If Lessor determines during an inspection of the Premises that Lessee is
responsible under this Lease for any maintenance or repairs, Lessor shall
Texas Jet, Inc. - Lease Site 21N
Ground Lease Agreement
Meacham International Airport
Page 9 of 23
notify Lessee in writing. Lessee agrees to begin such maintenance or repair
work diligently within thirty (30) calendar days following receipt of such
notice and to then complete such maintenance or repair work within a
reasonable time, considering the nature of the work to be done. If Lessee
fails to begin the recommended maintenance or repairs within such time or
fails to complete the maintenance or repairs within a reasonable time, Lessor
may, in its discretion, perform such maintenance or repairs on behalf of
Lessee. In this event, Lessee will reimburse Lessor for the cost of the
maintenance or repairs, and such reimbursement will be due on the date of
Lessee's next monthly rent payment following completion of the
maintenance or repairs.
8.3.3. During any inspection, Lessor may perform any obligations that Lessor is
authorized or required to perform under the terms of this Lease or pursuant
to its governmental duties under federal, state or local laws, rules or
regulations.
8.3.4. Lessee will permit the City's Fire Marshal or his or her authorized agents to
Inspect the Premises and Lessee will comply with all requirements of the
Fire Marshal or his or her authorized agents that are necessary 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 amended. Lessee shall maintain in proper condition
accessible fire extinguishers of a number and type approved by the Fire
Marshal or his or her authorized agents for the particular hazard involved.
8.4. Environmental Remediation.
To the best of Lessor's knowledge, the Premises comply with all applicable federal,
state and local environmental regulations or standards Lessee agrees that it has
inspected the Premises and is fully advised of its own rights without reliance upon
any representation made by Lessor concerning the environmental condition of the
Premises. LESSEE, AT ITS SOLE COST AND EXPENSE, AGREES THAT IT
SHALL BE FULLY RESPONSIBLE FOR THE REMEDIATION AND FOR
ANY COSTS RELATED TO ANY VIOLATION OF ANY APPLICABLE
FEDERAL, STATE OR LOCAL ENVIRONMENTAL REGULATIONS OR
STANDARDS THAT IS CAUSED BY LESSEE, ITS OFFICERS, AGENTS,
SERVANTS, EMPLOYEES, CONTRACTORS, SUBCONTRACTORS OR
INVITEES.
9. SIGNS.
Lessee may, at its sole expense and with the prior written approval of the Director, may
install and maintain signs on the exterior of the Premises related to Lessee's business
Texas Jet, Inc. - Lease Site 21N
Ground Lease Agreement
Meacham International Airport
Page 10 of 23
operations. Such signs, however, must be in keeping with the size, color, location and
manner of display of other signs at the Airport. Lessee shall maintain all such signs in a
safe, neat, sightly and physically good condition.
10. RIGHTS AND RESERVATIONS OF LESSOR.
Lessor hereby retains the following rights and reservations:
10.1. Lessor reserves the right to take 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
10.2 Lessor reserves the right to develop and improve the Airport as it sees fit, regardless
of the desires or view of Lessee, and without interference or hindrance by or on
behalf of Lessee. Accordingly, nothing contained in this Lease shall be construed to
obligate Lessor to relocate Lessee as a result of any such Airport developments or
improvements.
10.3 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.
In the event that any such existing or future agreement directly causes a material
restriction, impairment or interference with Lessee's primary operations on the
Premises ("Limitation") for a period of less than seven (7) calendar days, this
Lease shall continue in full force and effect. If the Limitation lasts more than seven
(7) calendar days, Lessee and Lessor shall negotiate in good faith to resolve or
mitigate the effect of the Limitation If Lessee and Lessor are in good faith unable
to resolve or mitigate the effect of the Limitation, and the Limitation lasts between
seven (7) and one hundred eighty (180) days, then for such period (i) Lessee may
suspend the payment of any rent due hereunder, but only if Lessee first provides
adequate proof to Lessor that the Limitation has directly caused Lessee a material
loss in revenue (ii) subject to ordinary wear and tear, Lessor shall maintain and
preserve the Premises and its improvements in the same condition as they existed on
the date such Limitation commenced; and (iii) the term of this Lease shall be
extended at Lessee's option, for a period equal to the duration of such Limitation. If
the Limitation lasts more than one hundred eighty (180) days, then (i) Lessor and
Lessee may, but shall not be required to (a) further adjust the payment of rent and
other fees or charges, (b) renegotiate maintenance responsibilities and (c) extend the
term of this Lease, or (ii) Lessee may terminate this Lease upon thirty (30) days'
written notice to Lessor
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Ground Lease Agreement
Meacham International Airport
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10.4 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. 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. If any lease between Lessor
and the United States Government executed pursuant to this Section 10.4 directly
causes a Limitation for a period of less than seven (7) calendar days, this Lease shall
continue in full force and effect. If the Limitation lasts more than seven (7) calendar
days, Lessee and Lessor shall negotiate in good faith to resolve or mitigate the effect
of the Limitation. If Lessee and Lessor are in good faith unable to resolve or
mitigate the effect of the Limitation, and the Limitation lasts between seven (7) and
one hundred eighty (180) days then for such period (i) Lessee may suspend the
payment of any rent due hereunder, but only if Lessee first provides adequate proof
to Lessor that the Limitation has directly caused Lessee a material loss in revenue;
(ii) subject to ordinary wear and tear, Lessor shall maintain and preserve the
Premises and its improvements in the same condition as they existed on the date
such Limitation commenced; and (iii) the term of this Lease shall be extended, at
Lessee's option, for a period equal to the duration of such Limitation. If the
Limitation lasts more than one hundred eighty (180) days, then (i) Lessor and Lessee
may, but shall not be required to, (a) further adjust the payment of rent and other
fees or charges, (b) renegotiate maintenance responsibilities and (c) extend the term
of this Lease, or (ii) Lessee may terminate this Lease upon thirty (30) days written
notice to Lessor.
10.5 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.
10.6 Lessee's rights hereunder shall be subject to all existing and future utility and
drainage easements and rights -of -way granted by Lessor for the installation,
maintenance, inspection, repair or removal of facilities owned or operated by
electric gas, water, sewer, communication or other utility companies Lessee's
rights shall additionally be subject to all rights granted by any ordinance or statute
which allows utility companies to use publicly -owned property for the provision of
utility services.
10.7 Lessor agrees Lessee shall have the right of ingress and egress to and from the
Premises by means of roadways for automobiles and taxiways for aircraft including
access during the construction phase of airport improvements unless otherwise
agreed to in writing by both parties. Such rights shall be consistent with the rules
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Ground Lease Agreement
Meacham International Airport
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and regulations with respect to the occupancy and use of airport premises as adopted
from time to time by the City of Fort Worth and by the Federal Aviation
Administration or any other state, federal or local authority.
11. INSURANCE.
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, its Officers, Employees and
Volunteers as an additional insured and covering all public risks related to the leasing, use,
occupancy, maintenance, existence or location of the Premises Lessee shall obtain the
required insurance in accordance with Exhibit "C", the "City of Fort Worth Aviation
Insurance Requirements" attached hereto and made part of this Lease for all purposes.
In addition, Lessee shall be responsible for all insurance to construction, improvements,
modifications or renovations to the Premises and for personal property of its own or in its
care, custody or control.
11.1. Adiustments to Required Coverage and Limits.
Insurance requirements, including additional types of coverage and increased limits
on existing coverages, are subject to change at Lessor's option and as necessary to
cover Lessee's and any Sublessees operations at the Airport. Lessee will
accordingly comply with such new requirements within thirty (30) days following
notice to Lessee.
11.2. Certificates.
As a condition precedent to the effectiveness of this Lease, Lessee shall furnish
Lessor with appropriate certificates of insurance signed by the respective insurance
companies 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, at Lessor's request, provide Lessor with evidence that it has maintained such
coverage in full force and effect.
11.3. 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, to
grant additional insured status to the City, its Officers, Employees and Volunteers,
and to provide that no material changes in coverage including, but not limited to,
cancellation, termination, non -renewal or amendment, shall be made without thirty
Texas Jet, Inc. - Lease Site 21N
Ground Lease Agreement
Meacham International Airport
Page 13 of 23
(30) days' prior written notice to Lessor Lessor shall be responsible for notifying
the City of any change to its insurance coverage that amends or alters that coverage
required by this lease.
12. 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 respondeat 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.
13. INDEMNIFICATION.
13.1. The following words and phrases shall be defined as follows:
13.1.1. "Environmental Damages" shall mean all damages, losses, diminished
values, claims, judgments, penalties, fines liabilities, encumbrances, liens,
costs, expenses of investigation, and the defense of any claim, whether or
not such claim is ultimately defeated, results in a judgment or order of any
kind, or is resolved by any good faith settlement, and of whatever kind or
nature, direct or indirect, tangible or intangible, compensatory, exemplary, or
punitive, economic or non -economic, contingent or otherwise, matured or
unmatured, foreseeable or unforeseeable, to the City and any third parties,
including without limitation reasonable attorney's and consultant's fees, any
of the foregoing which are incurred as a result the Contractor s work, or due
to negligence, or arising from a violation of any Environmental
Requirements, or arising from strict liability, or an intentional tort, and
whether any of the foregoing are attributable to the Contractor, a
Subcontractor, a vendor, employee agent, successor, or assignee and
including by way of example but not limited to:
13.1.1.1.
Damages for personal injury or death, pain and suffering, mental
or emotional distress, injury to property of any kind or to natural
resources, environmental contamination, or the loss of use or
value of property;
13.1.1.2. Fees incurred for the services of attorneys, consultants,
engineers, contractors, experts, laboratories, and investigators
related to any studies, cleanup, remediation, removal, response,
Texas Jet, Inc. - base Site 21N
Ground Lease Agreement
Meacham International Airport
Page 14 of 23
abatement, containment, closure, restoration, monitoring work,
civil or criminal defense, or the recovery of any other costs; and
13.1.1.3. Liability, claims, or judgments to any third persons or
governmental agencies in connection with the items referenced
herein.
13.1.1.4. Fines, penalties, costs, agreed orders, or settlements to any
federal, state, or local government for violations of
environmental laws, permits, standards, or regulations.
13.1.2. `Environmental Requirements" shall mean the allowable or permissible
levels, concentrations, or amounts of materials; all applicable present and
future statutes, regulations, rules, permits, plans, or authorizations of all
federal, state, and local governmental agencies; and all applicable judicial,
administrative, and regulatory decrees, judgments, and orders; and all
common law causes of action; all of the above relating to the protection of
human health or the environment and being inclusive of, but not limited to:
13.1.2.1. All requirements, including, but not limited to, those pertaining
to reporting, licensing, permitting, facilities, sites, operations,
emissions, discharges, releases, or threatened releases of wastes,
substances, materials, pollutants, contaminants, hazardous
wastes, petroleum products, toxic substances, materials, or other
any other regulated or harmful substances whether solid, liquid,
or gaseous into the air, surface water, groundwater, storm water,
or land, or relating to the manufacture, processing, distribution,
use, treatment, storage, disposal, transport, or handling of
elements, compounds, materials, substances, pollutants,
contaminants, or hazardous or toxic materials, substances, or
wastes, whether solid, liquid, or gaseous in nature; and
13.1.2.2. All requirements, including, but not limited to, those pertaining
to reporting, licensing, permitting, facilities, sites, operations,
emissions, discharges, releases, or threatened releases of
radioactive materials or radiation or electromagnetic fields.
13.1.2.3. All requirements relating to asbestos, lead, or petroleum
(including fuels, oils, lubricants, and wastes)
13.1.2.4. All requirements pertaining to the protection of the environment,
natural resources the health and safety of employees or the
public and
13.1.2.5. Citizen suits authorized by any federal or state law; and
Texas Jet, Inc. - Lease Site 21N
Ground Lease Agreement
Meacham International Airport
Page 15 of 23
13.1.2.6. All common law causes of action related to health, safety, natural
resources, and the environment.
13.2. Environmental Indemnification. CONTRACTOR AGREES TO INDEMNIFY,
HOLD HARMLESS, RELEASE, REIMBURSE, AND DEFEND, THE CITY,
ITS OFFICERS, AGENTS, AND EMPLOYEES AGAINST ANY AND ALL:
13.2.1 ENVIRONMENTAL DAMAGES, AS DEFINED HEREIN, THAT ARE
RELATED TO ANY ENVIRONMENTAL REQUIREMENTS AS
DEFINED HEREIN, INCLUDING ANY ACTS, OMISSIONS, OR
LL4BILITIES (INCLUDING STRICT LL4BILITI9 AND
13.2.2 VIOLATIONS, ALLEGED VIOLATIONS, SUITS, OR CLAIMS
RELATED TO ANY ENVIRONMENTAL REQUIREMENTS AS
DEFINED HEREIN, INCLUDING ANY ACTS, OMISSIONS, OR
LL4BILITIES (INCLUDING STRICT LIABILITI9.
LESSEE HEREBY ASSUMES ALL LIABILITYAND RESPONSIBILITY FOR
PROPERTY LOSS, PROPERTY DAMAGE AND/OR PERSONAL INJURY OF
ANY KIND, 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, MAINTENANCE, USE, OCCUPANCY,
EXISTENCE OR LOCATION OF THE PREMISES, EXCEPT TO THE
EXTENT CAUSED BY THE NEGLIGENCE OR INTENTIONAL
MISCONDUCT OF LESSOR, ITS OFFICERS, AGENTS, SERVANTS OR
EMPLOYEES.
LESSEE COVENANTS AND AGREES TO, AND DOES TO THE EXTENT
ALLOWED BYLAW, WITHOUT WAIVING ANY DEFENSES PROVIDED BY
LAW, 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 BUSINESS AND ANY RESULTING LOST PROFITS)
AND/OR PERSONAL INJURY, INCLUDING DEATH, TO ANY AND ALL
PERSONS, OF ANY KIND OR CHARACTER, WHETHER REAL OR
ASSERTED, ARISING OUT OF OR IN CONNECTION WITH LESSEE'S USE
OF THE AIRPORT UNDER THIS LEASE OR WITH THE USE, LEASING,
MAINTENANCE, OCCUPANCY, EXISTENCE OR LOCATION OF THE
PREMISES, EXCEPT TO THE EXTENT CAUSED BY THE NEGLIGENCE
OR INTENTIONAL MISCONDUCT OF LESSOR, ITS OFFICERS AGENTS,
SERVANTS OR EMPLOYEES.
Texas Jet, Inc. - Lease Site 21N
Ground Lease Agreement
Meacham International Airport
Page 16 of 23
LESSEE ASSUMES ALL RESPONSIBILITY AND AGREES TO PAY LESSOR
FOR ANY AND ALL INJURIES OR DAMAGES TO LESSOR'S PROPERTY
WHICH ARISE OUT OF OR IN CONNECTION WITH ANY AND ALL ACTS
OR OMISSIONS OF LESSEE, ITS OFFICERS, AGENTS, EMPLOYEES,
CONTRACTORS, SUBCONTRACTORS, LICENSEES OR INVITEES,
EXCEPT TO THE EXTENT CAUSED BY THE NEGLIGENCE OR
INTENTIONAL MISCONDUCT OF LESSOR, ITS OFFICERS, AGENTS,
SERVANTS OR EMPLOYEES.
LESSOR DOES NOT GUARANTEE POLICE PROTECTION TO LESSEE,
ANY SUBLESSEES OR THEIR PROPERTY. LESSOR IS OBLIGATED
ONLY TO PROVIDE SECURITY ADEQUATE TO MAINTAIN LESSOR'S
CERTIFICATION UNDER FAA REGULATIONS. LESSEE SHALL COMPLY
WITH ALL APPLICABLE REGULATIONS OF THE FAA RELATING TO
AIRPORT SECURITY. LESSEE SHALL PAY ALL FINES IMPOSED BY
THE FAA ON LESSOR OR LESSEE RESULTING FROM LESSEE'S OR ANY
SUBLESSEES' FAILURE TO COMPLY WITH SUCH FAA REGULATIONS
OR TO PREVENT UNAUTHORIZED PERSONS OR PARTIES FROM THEIR
OBTAINING ACCESS TO THE AIR OPERATIONS AREA OF THE
AIRPORT FROM THE PREMISES.
14. TERMINATION.
In addition to termination rights contained elsewhere in this Lease, Lessor shall have the
right to terminate this Lease as follows:
14.1. Failure by Lessee to Pay Rent, Fees or Other Charges.
If Lessee fails to pay any rent, fees or other charges due under this Lease, Lessor
shall deliver to Lessee a written invoice and notice to pay the invoice within ten (10)
calendar days If Lessee fails to pay the balance outstanding within such time,
Lessor shall have the right to terminate this Lease immediately.
14.2. Breach or Default by Lessee.
If Lessee commits any breach or default, other than Lessee's failure to pay rent,
Lessor shall deliver written notice to Lessee specifying the nature of such breach or
default. Lessee shall have thirty (30) calendar days following such written notice to
cure, adjust or correct the problem to the standard existing prior to the breach If
Lessee fails to cure the breach or default within such time period, Lessor shall have
the right to terminate this Lease immediately.
Texas Jet, Inc. - Lease Site 21N
Ground I rase Agreement
Meacham International Airport
Page 17 of 23
14.3. Abandonment or Non -Use of the Premises.
Lessee's abandonment or non-use of the Premises for any reason for more than thirty
(30) consecutive calendar days shall constitute grounds for immediate termination
of this Lease by Lessor.
14.4. Lessee's Financial Oblieations to Lessor upon Termination. Breach or Default.
If Lessor terminates this Lease for any non-payment of rent, fees or other charges or
foi any other breach or default as provided in Sections 14.1, 14.2 or 14.3 of this
Lease, Lessee shall be liable for and shall pay to Lessor all rent due Lessor for the
remainder of the term then in effect as well as all arrearages of rentals, fees and
charges payable hereunder. In no event shall a reentry onto or reletting of the
Premises by Lessor be construed as an election by Lessor to forfeit any of its rights
under this Lease.
14.5. Riehts of Lessor Upon Termination or Expiration.
Upon termination or expiration of this Lease, all rights, powers and privileges
granted to Lessee hereunder shall cease and Lessee shall vacate the Premises.
Within twenty (20) days following the effective date of termination or expiration,
Lessee shall remove from the Premises all trade fixtures, tools, machinery,
equipment, materials and supplies placed on the Premises by Lessee pursuant to this
Lease. After such time, Lessor shall have the right to take full possession of the
Premises, by force if necessary, and to remove any and all parties and property
remaining on any part of the Premises 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 termination of this Lease or any act incident to Lessor's
assertion of its right to terminate or Lessor's exercise of any rights granted
hereunder.
15. NOTICES.
Notices required pursuant to the provisions of this Lease shall be conclusively determined to
have been delivered when (i) hand -delivered to the other party, its agents, employees,
servants or representatives, or (ii) deposited in the United States Mail, postage prepaid,
addressed as follows:
To LESSOR:
City of Fort Worth
Aviation Department
4201 N Main St, Suite 200
Fort Worth TX 76106
Texas Jet, Inc. - Lease Site 21N
Ground Lease Agreement
Meacham Intemational Airport
Page 18 of 23
To LESSEE:
Texas Jet, Inc
ATTN Reed Pigman, Jr.
200 Texas Way
Fort Worth TX 76106
16. ASSIGNMENT AND SUBLETTING.
16.1. In General.
Lessee shall have the right to sublease the Premises as provided by and in
accordance with Section 5 of this Lease. Otherwise, Lessee shall not assign, sell,
convey, sublease or transfer the entirety of its rights, privileges, duties or interests
granted by this Lease without the advance written consent of Lessor.
16.2. Conditions of Approved Assignments and Subleases.
If Lessor consents to any assignment or sublease of the Premises, all terms,
covenants and agreements set forth in this Lease shall apply to the assignee or
sublessee, and such assignee or sublessee shall be bound by the terms and
conditions of this Lease the same as if it had originally executed this Lease. The
failure or refusal of Lessor to approve a requested assignment or sublease shall not
relieve Lessee of its obligations hereunder, including payment of rentals, fees and
charges.
17. 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 for any lien upon the property 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 upon thirty (30) days' written notice. 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.
18. 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.
19. COMPLIANCE WITH LAWS, ORDINANCES, RULES 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.
Texas Jet, Inc - Lease Site 21N
Ground Lease Agreement
Meacham International Airport
Page 19 of 23
Lessee agrees to comply with all federal, state and local laws; all ordinances, rules and
regulations of Lessor; all rules and regulations established by the 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.
20. 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 price 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 non-discrimination covenant by Lessee,
its personal representatives, successors in interest or assigns, Lessee agrees to indemnify
Lessor and hold Lessor harmless.
21. LICENSES AND PERMITS.
Lessee shall, at its sole expense, obtain and keep in effect all licenses and permits necessary
for the operation of its operations at the Airport.
22. GOVERNMENTAL POWERS.
It is understood and agreed that by execution of this Lease, Lessor does not waive or
surrender any of its governmental powers.
Texas Jet, Inc. - Lease Site 21N
Ground Lease Agreement
Meacham International Airport
Page 20 of 23
23. 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.
24. VENUE AND JURISDICTION.
If any action, whether real or asserted, at law or in equity, arises on the basis of any
provision of this Lease or of Lessee s operations on the Premises, venue for such action
shall lie in state courts located 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.
25. ATTORNEYS' II EES.
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.
26. 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.
27. FORCE MAJEURE.
Lessor and Lessee shall exercise every reasonable effort 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, transportation problems and/or any other cause beyond the reasonable
control of Lessor or Lessee.
28. SIGNATURE AUTHORITY.
The person signing this agreement hereby warrants that he/she has the legal authority to
execute this agreement on behalf of the respective party, and that such binding authority has
been granted by proper order, resolution, ordinance or other authorization of the entity. Each
Texas Jet, Inc. - Lease Site 21N
Ground Lease Agreement
Meacham International Airport
Page 21 of 23
party is fully entitled to rely on these warranties and representations in entering into this
Agreement or any amendment hereto.
29. 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.
30. ENTIRETY OF AGREEMENT.
This written instrument, including any documents attached hereto or 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.
IN W NESS WHEREOF,,the parties hereto have executed this Agreement in multiples
on this the
ay of (,�(//f i� , 2014.
CITY OF FORT WORTH:
/ fit,/
By: ��Grido
Fernando Costa.
Assistant City Manager
Date: 4/2 h4
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
2014.
Texas Jet, Inc. - Lease Site 21N
Ground Lease Agreement
Meacham International Airport
Page 22 of 23
day
4.
stisentecse..) anotrce_
tary Public in and for the State of Texas
VaiSallneSIMIMISSINISISair
�%"'9YPV:,
•
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•;/Iitjlins%`
EVONIA DANIELS
Notary Public, State of Texas
My Commission Expires
July 10, 2017
APPROVED AS TO FORM
AND L .GALITY:
harlene Sanders
Assistant City Attorney
M&C: AO 2,
Date:
1 id
LESSEE:
TEXAS JET, INC.
By: .9
are
Reed Pigman, Jr.
President
Date: Zs -
STATE OF reerizzsa §
COUNTY OF 741/414k274
ATTEST:
BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day
personally appeared Reed Pigman, Jr.,, 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 TEXAS JET, INC.
and that he executed the same as the act of TEXAS JET, INC. for the purposes and consideration
therein expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this l/6day
Sa6v'uory , 2014.
A s a s
LESA MOKE
My Commission Expires
May 16, 2014
Texas Jet, Inc. - Lease Site 21N
Ground Lease Agreement
Meacham International Airport
Page 23 of 23
otary Public in and for therState of Texas
or
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
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Paton of Dlak I
MEACHNd NOVO-
M Addltlort to the Cthi of Port Worth, farm*. Caritti, texas
Accerdtq to the Plat recorded e1 Cab►it A 511des 2445-244/
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FULTON SURVEYING, INC.
115 ST. LOWS AVENUE
FORT WonETEXAS17) 76104
414Od2 TBPLS FIRM *100 5600
2N/ 51N SS
EXHIBIT "B"
MANDATORY IMPROVEMENTS
LEASE SITE 21N
Approximately 27,000 Square Foot Aircraft Hangar Facility, Carports and
Parking Garage
All mandatory improvements for Lease Site 21N, as detailed below, must be completed in
accordance with Section 4 of the Lease and the proposed site plan and completed survey set forth
in Exhibit A attached hereto.
1. Construction shall commence within six (6) months following the execution of the Lease
Construction and issuance of a Certificate of Occupancy of the approximately 27 000
square foot hangar and associated apron shall be completed no later than eighteen (18)
months after construction commenced.
2. Construction shall be completed according to the Project Schedule. For each major task
on the Schedule, at a minimum, a 24-hour advance notice of commencement shall be
provided.
3. At Construction Completion, the following shall be provided:
• A copy of the Certificate of Occupancy
• A complete set of Record Drawings and/or As -Built Drawings (in Adobe PDF
and AutoCAD formats)
• A Summary of the total cost/value of the Mandatory Improvements
In the event that Lessor and Lessee agree to deviate from the terms, provisions, specifications or
conditions of these Mandatory Improvements in any way, an Amendment to the Lease shall be
signed and dated by both Lessor and Lessee and shall be attached to and made a part of the
Lease and shall supersede the previous terms, provisions, and specifications as specifically
identified. Upon issuance of the Certificate of Occupancy Lessor shall take full title to the
Mandatory Improvements on the Premises.
EXHIBIT "B-1"
PROJECT SCHEDULE
MANDATORY IMPROVEMENTS
LEASE SITE 21N
ACTIVITY
Site Survey
Metes & Bounds
Airport/City Design Review
Preliminary
Final
Acquire Building Permits
FAA
Airspace Study - 7460
Construction
Pre -Construction Meeting w/Airport
Staking
Utilities Coordination/Clearance
Site Grading, Contour, Excavation, etc.
Hangar Foundation
Apron Paving
Parking Lot/Parking Spaces
Pedestrian Walkway(s), if applicable
Concrete Quality Assurance Tests
Structure Build -out
Ramp/Hangar Lighting
Landscaping
Inspections
Final Inspection
Certificate of Occupancy
START I FINISH
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All provisions of the Lease and this Project Schedule shall be fully complied with in the
performance of any such Mandatory Improvements. Should construction not be completed as
evidenced by the issuance of a Certificate of Occupancy within the applicable time period set
forth above, Lessee shall be in default of the Lease and the Lessor shall terminate Lessee's rights
to the Premises in its entirety.
EXIIIBIT "C"
MANDATORY IMPROVEMENTS
REIMBURSEMENT OF ASBESTOS ABATEMENT
LEASE SITE 21N
• Subject to the terms, provisions and conditions of Section 4.2. of the Lease, reimbursement
of costs associated with the asbestos abatement of the Hangai located on Lease Site 21N
shall be made. Total reimbursement costs shall not exceed $15,000.00.
• For the reimbursement request, a Written Application is to be submitted by Texas Jet, Inc.,
and must include the following:
1. An Expense Form detailing costs incurred for labor, materials, or services supplied;
2. A Bills Paid Affidavit Form signed by Contractor for payments made to Contractor; and
3. Copies of statements, invoices, bills, and other documents paid by Texas Jet, Inc. during
the period of time for which reimbursement is requested.
• All Written applications and associated documentation must be mailed to the address below,
hand -submittals will not be accepted
City of Fort Worth Aviation Department
ATTN• Lease Mgmt/Abatement 21N
4201 N. Main Street Ste. 200
Fort Worth, Texas 76106
EXHIBIT "C-1"
Texas Administrative Code
Title 25
PART 1
CHAPTER 295
SUBCHAPTER C
RULE §295.34
HEALTH SERVICES
DEPARTMENT OF STATE HEALTH SERVICES
OCCUPATIONAL HEALTH
TEXAS ASBESTOS HEALTH PRO 1'ECTION
Asbestos Management in Facilities and Public Buildings
(a) General. Building owners are required to inform all persons in writing, or document oral
communication between the owner (or their authorized representative) and those who perform
any type of maintenance, custodial, renovation, or demolition work, of the presence and location
of asbestos -containing building materials (ACBM) prior to the start of any asbestos -related
activity.
(1) Demolition and/or renovation of a facility or commercial building. Before performing
any demolition or renovation activity in a facility or commercial building, building
owners or operators shall ensure that all friable asbestos -containing material (ACM) or
asbestos -containing materials which may become friable (i e. Category II nonfriable
ACM) are inspected and abated in accordance with 40 CFR Part 61, Subpart M.
(2) Demolition and/or renovation of a public building. Before performing any demolition
in a public building, building owners shall ensure that all friable asbestos -containing
material (ACM) or ACM which may become friable (i e. Category II nonfriable ACM)
are surveyed and abated in accordance with 40 CFR Part 61, Subpart M. Before
performing any renovation in a public building, building owners are required to survey
and perform asbestos abatement for all asbestos -containing building material (ACBM)
that could foreseeably be disturbed in the area to be renovated in accordance with these
rules. The asbestos survey and abatement for the demolition and/or renovation shall be
conducted by persons licensed in accordance with these rules and according to the
standards for removal specified in §§295.58 - 295.60 of this title.
(b) Statement of responsibility The building owner retains the primary responsibility for
compliance with these rules for the presence condition, disturbance, renovation, demolition, and
disposal of any asbestos encountered in the construction, operations, maintenance, or furnishing
of that building or facility, including:
(1) the responsibility for the periods of vacancy, and for all preparations prior to actual
demolition; all regulated asbestos -containing material (RACM) must be removed prior to
demolition in accordance with the National Emission Standards for Hazardous Air
Pollutants (NESHAP), and in a public building, comply with §295.60 of this title
(relating to Operations: Abatement Practices and Procedures);
(2) the obligation to inform those who enter the building or facility for purposes of
construction, maintenance, installation, repairs, etc., of the presence and location of
asbestos that could be disturbed by those activities, and to arrange for proper handling of
any asbestos that would be disturbed or dislodged by such activity;
Texas Administrative Code
Title 25.295.0
Page 1 of 6
EXHIBIT "C-1"
(3) the responsibility for periods when the building or facility is under management by
others;
(4) the responsibility to ensure licensees have in effect workers' compensation insurance
issued by a company authorized and licensed to issue workers' compensation insurance in
this state and written in this state on the Texas form, or evidence of self-insurance, if
workers' compensation insurance is required by the specifications or owner
(5) the responsibility to hire a contractor at the building owner's discretion to oversee
certain tasks. Only a contractor engaged in asbestos -related activities, as described in
these sections, must be licensed. The building owner retains primary responsibility for
compliance with these rules. The building owner may delegate the following duties to a
contractor:
(A) preparing bid documents, which do not include plans and specifications as
defined in §295.32(76) of this title (relating to Definitions);
(B) entering into contracts for asbestos -related activities with qualified licensees;
(C) overseeing the work performance of a licensee, as it relates to contractual
obligations; and
(D) paying for asbestos related activities on behalf of the owner; and
(6) the responsibility to hire an agent other than a contractor in accordance with the
responsibility provisions of paragraph (5) of this subsection subject to the conflict of
interest limitations of §295 37 of this title (relating to Licensing and Registration:
Conflicts of Interests).
(c) Conditions requiring a mandatory asbestos survey for ACBM. Prior to any renovation or
dismantling within a public building, commercial building, or facility including preparations for
partial or complete demolition, as required by 40 CFR, §61.145, owners must have a thorough
survey performed. The work area and all immediately surrounding areas which could foreseeably
be disturbed by the actions necessary to perform the project must be inspected and sampled as
applicable prior to renovations or demolition. A copy of the survey report must be produced
upon request by the Texas Department of Health (department). If a survey cannot be performed
before demolition or renovation is started due to the building being structurally unsound and
unsafe to enter, all material must be presumed to contain asbestos and must be treated as ACBM.
(1) In a public building the inspection must be performed by a person appropriately
licensed in accordance with these rules. Criteria to rebut the presence of ACBM in a
public building shall be based upon surveys which conform to generally accepted
industry standards such as the protocol specified in §763.85, commonly referred to as the
'AHERA" rules which are the required method for schools Other factors should be
taken into consideration when deciding on the best method to determine the location,
extent and condition of the ACBM in a non -school building. Multi -story buildings may
require investigation of the systems in the building in order to identify all possible
ACBM. Under no circumstances will less than three samples for each suspect
homogeneous area be collected for purposes of rebutting the presence of ACBM. During
the construction of or renovation in a public building, a person appropriately licensed in
accordance with these rules, Texas -registered architect or Texas -licensed professional
Texas Administrative Code
Title 25.295.0
Page 2 of 6
EXHIBIT "C-1"
engineer may compile the information from material safety data sheets (MSDS) of all
products used in the construction of the building and, finding no asbestos in any of those
products, prepare a signed written certification that he has reviewed the MSDSs for all
products used in the construction and that none of those products contain ACBM and,
therefore, the building materials do not contain asbestos. This certification, together with
copies of the MSDSs and copies of any previous asbestos surveys, may be used as an
asbestos survey.
(2) In a commercial building the inspection must be performed by an accredited
inspector. This person is not required to be licensed but must have the applicable Model
Accreditation Plan training.
(3) In a facility the inspection must conform with 40 CFR §61.145.
(4) Asbestos surveys remain acceptable if the asbestos survey was done in compliance
with the Texas Asbestos Health Protection Rules (TAHPR) in effect at the time the
asbestos survey was completed, and if the asbestos survey continues to represent
accurately the suspect asbestos -containing building materials, location(s) of the materials
surveyed, and any asbestos conditions in the building.
(d) Asbestos control and abatement. A public building owner has the following options for
managing the asbestos found in his/her buildings.
(1) Building owners may hire a licensed asbestos abatement contractor to conduct
asbestos abatement.
(2) Building owners may hire or retain a licensed asbestos abatement contractor or a
licensed asbestos Operations and Maintenance (O&M) contractor to conduct small-scale,
short -duration work activities or cleanup affecting asbestos. When utility work is to be
performed, the building owner shall either have the affected asbestos -containing material
removed prior to the work of a utility contractor, or require the utility contractor to be
licensed to handle asbestos -containing materials.
(3) Building owners may conduct asbestos O&M activities within public buildings with
their own employees for their own account if they obtain an asbestos operations and
maintenance contractor (restricted) license, according to §295.43 of this title (relating to
Licensure: Asbestos Operations and Maintenance Contractor (Restricted)), have a
licensed supervisor according to §295.44 of this title (relating to Licensure: Asbestos
Operations & Maintenance Supervisor (Restricted)), and have registered workers
according to §295 42 of this title (relating to Registration: Asbestos Abatement Workers)
(4) Building owners may conduct asbestos abatement projects, including asbestos O&M
activities if they obtain an asbestos abatement contractor's license, as set forth in §295.45
of this title (relating to Licensure: Asbestos Abatement Contractor).
(e) Prohibition. The owner of a public building and any other person who contracts with or
otherwise permits any person without appropriate valid license, registration, accreditation, or
approved exemption to perform any asbestos -related activity is subject to administrative or civil
penalty under the Texas Health Protection Act (Act), not to exceed $10,000 a day for each
Texas Administrative Code
Title 25.295.0
Page 3 of 6
EXHIBIT "C-1"
violation or criminal penalty not to exceed $25,000, confinement in jail for not more than two
years, or both.
(f) Mandatory notification. Notification is required in accordance with §295.61 of this title
(relating to Operations: Notifications) under the following conditions.
(1) Notification is required for any demolition of a facility or public building, whether or
not asbestos has been identified.
(2) In a public building, a notification to abate any amount of asbestos must be submitted
to the Texas Department of Health (department) by the public building owner and/or
operator. In a facility a notification to abate amounts described in NESHAP must be
submitted to the department by the facility owner and/or operator.
(g) Mandatory abatement project design. A project design, with respect to friable ACBM, must
be prepared by either a licensed consultant (for a school or public building) or an accredited
project designer (for a commercial building) for all projects which involve any of the following
activities:
(1) A response action other than a SSSD activity,
(2) a maintenance activity that disturbs friable ACBM other than a SSSD activity or
(3) a response action for a major fiber release episode. Abatement projects which have a
combined amount of non -friable asbestos exceeding 160 square feet of surface area, or
260 linear feet of pipe length or 35 cubic feet of material to be removed from a public
building shall require that the project be designed by a licensed asbestos consultant. The
exception to this requirement is for floor tile removed in accordance with §295.36 of this
title (relating to Licensing and Registration: Exemptions; Emergency). In a commercial
building, non -friable material does not require a design but must be treated in accordance
with 40 CFR Part 61, Subpart M.
(h) Requirement for survey and management plan. If, in the opinion of the depai anent following
a site inspection of a public building, there appears to be a danger or potential danger from
asbestos -containing building materials in poor condition to the workers or occupants of the
building or the general public, the department shall, by written request, require the building
owner or authorized representative to complete an immediate survey and asbestos management
plan by a licensed asbestos inspector and licensed management planner or licensed consultant. A
copy of the management plan shall be submitted for review and approval to the department
within 90 days of receipt of the written request. Copies of the plan shall be on file with the owner
or management agency, and in the possession of the supervisor in charge of building operations
and maintenance.
(i) A person may not install building materials or replacement parts as stated in subsection (j) of
this section, in a public building unless:
(1) the person obtains a required MSDS showing that the materials or replacement parts
contain 1.0% or less of asbestos; or
Texas Administrative Code
Title 25.295.0
Page 4 of 6
EXHIBIT "C-1"
(2) the materials or replacement parts, according to the MSDS, contain more than 1.0%
asbestos but there is no alternative material or part as demonstrated by the building owner
or contractor.
(j) A MSDS shall be obtained for the following building materials or replacement parts including
but not limited to:
(1) surfacing materials*
(A) acoustical plaster;
(B) decorative plaster/stucco;
(C) textured paint/coating;
(D) spray applied insulation;
(E) blown -in insulation;
(F) fireproofing insulation;
(G) joint compound; and
(H) spackling compounds.
(2) theimal system insulation:
(A) taping compounds (thermal);
(B) HVAC duct insulation;
(C) boiler insulation;
(D) breaching insulation;
(E) pipe insulation and
(F) thermal paper products.
(3) miscellaneous material:
(A) cement pipes;
(B) cement wallboard/siding;
(C) asphalt/vinyl floor tile;
(D) vinyl sheet flooring/vinyl wall coverings;
(E) floor backing;
(F) construction mastic;
(G) ceiling tiles/lay-in ceiling panels;
(H) packing materials;
(I) high temperature gaskets*
(J) laboratory hoods/table tops;
(K) fire blankets/curtains;
(L) elevator equipment panels;
(M) elevator brake shoes;
(N) ductwork flexible fabric connections;
(0) cooling towers*
(P) heating and electrical ducts;
(Q) electrical panel partitions;
(R) electrical cloth/electrical wiring insulation;
(S) chalkboards;
(T) roofing shingles/tiles;
Texas Administrative Code
Title 25.295.0
Page 5 of 6
EXHIBIT "C-1"
(U) roofing felt;
(V) base flashing;
(W) fire doors;
(X) caulking/putties;
(Y) adhesives/mastics; and
(Z) wallboard.
(k) The department may exempt a demolition or renovation project from the TAHPA/NESHAP
rules relating to demolition and renovation activities if
(1) the project has received an exemption from the United States Environmental
Protection Agency exempting the project from federal regulations; or
(2) the board determines that:
(A) the project will use methods for the abatement or removal of asbestos that
provide protection for the public health and safety at least equivalent to the
protection provided by the procedures required under board rule for the abatement
or removal of asbestos; and
(B) the project does not violate federal law.
(1) Survey Required.
(1) In this section, "permit" means a license, certificate, approval, registration, consent,
permit, or other form of authorization that a person is required by law, rule, regulation,
order, or ordinance to obtain to perform an action, or to initiate, continue, or complete a
project, for which the authorization is sought.
(2) A municipality that requires a person to obtain a permit before renovating or
demolishing a public or commercial building may not issue the permit unless the
applicant provides:
(A) evidence acceptable to the municipality that an asbestos survey, as required
by this Act, of all parts of the building affected by the planned renovation or
demolition has been completed by a person licensed under this Act to perform a
survey* or
(B) a certification from a licensed engineer or architect, stating that:
(i) the engineer or architect has reviewed the material safety data sheets
for the materials used in the original construction, the subsequent
renovations or alterations of all parts of the building affected by the
planned renovation or demolition, and any asbestos surveys of the
building previously conducted in accordance with this Act; and
(ii) in the engineer's or architect's professional opinion, all parts of the
building affected by the planned renovation or demolition do not contain
asbestos.
Source Note: The provisions of this §295.34 adopted to be effective October 20, 1992, 17
TexReg 6901; amended to be effective September 22, 1994, 19 TexReg 7098; amended to be
effective December 13 1998, 23 TexReg 12353; amended to be effective March 27, 2003, 28
TexReg 2549; amended to be effective January 1, 2005, 29 TexReg 11987
Texas Administrative Code
Title 25.295.0
Page 6 of 6
(Date)
City of Fort Worth Aviation Department
ATTN* Lease Mgmt/Asbestos Abate-21N
4201 N. Main Street, Ste. 200
Fort Worth, TX 76106-2749
Re: Application for Reimbursement under the Ground Lease Agreement by and
as',2" d 3', etc.)
between Texas Jet Inc. ("Lessee") and the City of Fort Worth ("Lessor") dated
2014, and entered as City Secretary Contract No. .
Lessee hereby requests a Reimbursement under the Ground Lease Agreement to recoup
costs incurred in connection with Asbestos Abatement of Hangar 21N, in the amount of
$ ("Net Draw Request' ). All terms used and not otherwise defined in this
Application for Reimbursement are used as defined in the Lease Agreement.
The proceeds of the Reimbursement are to be used to recoup the items listed on the
attached page(s). The status of costs for the Asbestos Abatement is as follows:
(a) Total Reimbursement per Agreement $ 15,000.00
(b) Additions to date $
(c) Deductions to date ($ )
(d) Current projection of costs $ 15,000.00
(e) Total costs certified to date, including amount of this certificate ($ )
(f) Unpaid balance of projected costs (amount yet to be certified) $
Lessee represents and certifies as follows:
(a) The amount requested above has actually been incurred in connection with the
Asbestos Abatement and no previous Reimbursement has been made under the Lease Agreement
to pay any of the costs for which Lessee requests this Reimbursement.
(b) The representations in the Lease Agreement are true and correct as of the date this
Reimbursement Request is submitted to the Lessor.
Application to Aviation Dept
(Date)
Page 2
(c) All equipment, supplies and materials acquired or furnished in connection with the
Asbestos Abatement that are not affixed to or incorporated into the Improvements are stored on
the Premises.
(d) No Event of Default has occurred under the Lease Agreement.
Please do not hesitate to contact us with any questions or comments.
Yours truly,
Texas Jet, Inc.
200 Texas Way
Fort Worth, Texas 76106
By: Reed Pigman, Jr., its duly authorized President
By:
(signature)
Name: Reed Piaman. Jr.
Title: President
EXPENSE FORM -- DETAIL OF INCURRED COSTS
AIRPORT: Fort Worth Meacham International Airport
PROJECT: Asbestos Abatement - Lease Site 21N
TOTAL REIMBURSEMENT AVAILABLE: $ 15,000.00
F/A/C
CSC No.:
LESSEE: Texas Jet, Inc.
PAYMENT REIMBURSEMENT #:
FROM DATE:
TO DATE:
EXPENSE DETAIL
Description Amount
Total Request:
EXPENSE SUMIVIARY
Total Reimbursement Available $
Previous Reimbursements $
This Reimbursement $
Remaining Reimbursement Available $
SUBMITTED BY: DATE:
15,000.00
Please be sure to attach all Statements, Invoices, Bills, and other Documents paid
BILLS PAID AFFIDAVIT & WAIVER OF LIEN RIGHTS
State of Texas
County of: Tarrant
City of: Fort Worth
Project: Asbestos Abatement — Fort Worth Meacham International Airport
Lessee: Texas Jet, Inc
The undersigned hereby certifies that, except as listed below, he has been paid in full or has
otherwise satisfied all obligations for materials and equipment furnished, for all work, labor,
applicable taxes, and services performed ("Work") and all known indebtedness and claims
against the Contractor or Owner for damages arising in any manner in connection with the
Contractor or his property might in any way be held responsible. It is further acknowledged that
the undersigned has provided proof of insurance in a form acceptable to the Owner effective for
the period required to execute the Work.
The endorser's acceptance of this check acknowledges all payments prior to and including this
check indicate on their face that such checks are to be applied only for labor materials and
equipment on the Work herein required except as noted below.
The endorser's acceptance of this check releases any and all lien rights for said labor, materials
and equipment applicable to this payment or prior payments and furthermore agrees to indemnify
the Owner against any claims and/or legal fees resulting from the labor, materials, and equipment
provided by the undersigned.
Type of Work Contracted: Asbestos Abatement — Lease Site 21N
Current Payment: $ Check No.
Contractor Company Name.
Signed & Accepted: Date:
Exceptions:
TEXAS JET, INC.
200 TEXAS WAY
FORT WORTH, TEXAS 76106
-Category of t enant &/oi
Operations Property Insurance
FBOs
Flight Training
Air Taw
Specialized Com. Flight
Serv.
Aerial Applications
Aircraft Sales
Aircraft Rental
Airframe or Power Plant
Repair
Radio Instrument or
Propeller Repair
Multiple Services
Flying Clubs
Commercial Tenant
Commercial Tenant
Sublessee No $
Yes $
General Liability
EXHIBIT D
City of Fort Worth
Aviation Insurance Requirements
Environmental
Impairment
Auto
3,000,000.00 $ 1,000,000.00 $ 1,000,000.00
$ 1,000,000.00 $
$ 1,000,000.00 $
1,000,000.00
1,000,000.00
$ 1,000,000.00 $ 1,000,000.00
$ 1,000,000.00 $
$ 1,000,000.00 $
$ 1,000,000.00 $
$ 1,000,000.00 $
Mo. - Mo. Airport Tenant;
sm. premises area,
infrequent access by
others (no aircraft)
Hangar Tenant
No
(private sm. aircraft) No
Fuel Facilities: Trucks I N/A
Fuel Facilities: Tank Farm Yes $
Concessionaire:
Restaurant
Concessionaire:
Rent -a -car
Concessionaire:
Retail Shop
No $
No $
1,000,000.00 $
1,000,000.00 $
1,000,000.00 $
1,000,000.00
500,000.00
300,000.00
No
N/A $
1,000,000.00 $
1,000,000.00 $
1,000,000.00 $
500,000.00
1,000,000.00 $
1,000,000.00
1,000,000.00 No
1,000,000.00 No
1,000,000.00I No
1,000,000.00I No
1,000,000.00 No
1,000,000.00 No
500,000.00I No
Aircraft Liability
Small:
No 5M
Small:
No 5M
No
1,000,000.00
No
Small:
5M
Small.
5M
N/A
1M Large:
1M Large:
1M Large:
1M Large:
Small: 1M
5M
Small: 1M
5M
No
As Appli
Small. 1M
5M
As Applicable
As Applicable
Large:
Large:
No $
cable
Large:
No No No
No
1,000,000.00 $
1,000,000.00 $
1,000,000.00
1,000,000.00
No
No
1,000,000.00
1,000,000.00
No
No
No
300,000
No
No
No
No
No
* Depends on the terms of the lease agreement
Property Insurance requirement depends on the lease agreement. Coverage should be replacement cost basis
Liability coverage's are to include products and completed operation. The policy should be written on an occurrence basis
Hangarkeepers Liability is maintained according to typical exposure
Hangarkeepers
Liability
3,000,000.00
No
No
No
No
$ 1,000,000.00
1,000,000.00
1,000,000.00
1,000,000.00
As Applicable
N/A
No
No
No
No
No
No
No
No
No
aviationinsreg2001
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 3/18/2014
DATER Tuesday, March 18, 2014
LOG NAME' 55FTW TEXASJETINC AMEND ONE
SUBJECT:
REFERENCE NO.: **C-26713
Authorize Execution of Amendment No. 1 to City Secretary Contract No. 26680, a Ground Lease
Agreement with Texas Jet, Inc., for Lease Sites 21 N and 31 N at Fort Worth Meacham International Airport
to Remove Lease Site 21 N from City Secretary Contract No 26680 and Authorize Execution of a Ground
Lease Agreement with Mandatory Improvements with Texas Jet, Inc., for Lease Site 21N at Fort Worth
Meacham International Airport (COUNCIL DISTRICT 2)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the execution of Amendment No. 1 to City Secretary Contract No. 26680, a Ground Lease
Agreement with Texas Jet, Inc., for Lease Sites 21 N and 31 N at Fort Worth Meacham International Airport
to remove Lease Site 21N from City Secretary Contract No 26680; and
2. Authorize the execution of a Ground Lease Agreement with Mandatory Improvements with Texas Jet,
Inc., for Lease Site 21N at Fort Worth Meacham International Airport.
DISCUSSION:
On April 13, 2001, (M&C C-18433) Texas Jet, Inc. (Texas Jet), entered into City Secretary Contract (CSC)
No. 26680, a Ground Lease Agreement, for Lease Sites 21N and 31 N consisting of a total of 78,105
square feet of ground space, which includes two hangars at Fort Worth Meacham International Airport
(Meacham). Hangar 21N is approximately 14,265.7 square feet and Hangar 31 N is approximately 11,760
square feet. CSC No. 26680 contains a 30 year lease term that will expire on September 30, 2030 with
two consecutive rights of first refusal to renew the lease for two additional successive terms of five years
each.
Hangar 21N has exceeded its useful life and has become functionally obsolete in handling larger modern
aircraft. Aviation Staff has received a request from Texas Jet seeking permission to demolish the hangar
and build a new 27 000 square foot hangar in its place. In addition, Texas Jet has requested to remove
the 21 N Lease Site, comprised of 57,675.36 square feet, from CSC No. 26680 in order to facilitate the
rebuilding efforts which will leave Lease Site 31 N as the remaining site on this Agreement. Staff finds no
objection to these requests, as they are mutually beneficial to Texas Jet and Meacham.
This Amendment No. 1 will reduce the total square footage under CSC No. 26680 to 20,429.64 square
feet from the original square footage of 78,105 In addition, the rental rates, as identified in CSC No.
26680, will adjust in accordance with the adjusted total square footage. With this Amendment No. 1, CSC
No. 26680 will generate revenue of approximately $5,844.92 annually or $487 08 monthly.
The new ground lease, for lease site 21N, will consist of 95,832 square feet of ground space and will
Logname: 55FTW TEXASJETINC AMEND ONE Page 1 of 2
provide for a 30 year term with two options to renew for an additional five years each. The initial term of
the lease will expire on March 31, 2044. The total revenue received from this lease at a rate of $0.32 per
square foot, will be in the amount of $30,666.24 annually or $2,555.52 monthly, in accordance with the
Aviation Department's Schedule of Rates and Charges.
During the initial term of the lease, rental rates shall be subject to an increase every year to reflect the
upward percentage change, if any, in the Consumer Price Index for the period since the last
adjustment. In addition, rental rates during the initial and renewal terms will also be subject to a ground
rate adjustment every five years. The ground rate will automatically be adjusted to equal the then current
rates prescribed by the Schedule of Rates and Charges.
All other terms and conditions will remain unchanged and in effect.
The property is located in COUNCIL DISTRICT 2, Mapsco 48P.
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.
FUND CENTERS:
TO Fund/Account/Centers
PE40 491052 0551101
CERTIFICATIONS:
Submitted for City Manager's Office bv:
Originating Department Head:
Additional Information Contact:
$36.511.16
FROM Fund/Account/Centers
Fernando Costa (6122)
Bill Welstead (5402)
Jonnie Huitt (5409)
ATTACHMENTS
1. 55FTW TexasJetInc AmendOne Exhibit.pdf (Public)
Logname: 55FTW TEXASJLTINC AMEND ONE Page 2 of 2