HomeMy WebLinkAboutContract 42807-A2CITY SECRETARY CONTRACT NO. - Z
AMENDMENT N0. 2 TO CSC N"* 42807
FORT WORTH SPINKS AIRPORT
GROUND LEASE AGREEMENT
WITH MANDATORY IMPROVEMENTS
LEASE SITE NW-3
This AMENDMENT N0.2 ("Amendment") 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 and acting by and through Fernando Costa, its duly authorized Assistant
City Manager, and FWS REALTY, LTD. ("Lessee"), a limited liability partnership, acting by and
through its General Partner, Harrison Realty Investments, LLC, acting by and through its President,
Haydn Cutler, Jr.
RECITALS
WHEREAS, on or about January 19, 2012, Lessor and Lessee entered into City Secretary
Contract ("CSC") No. 42807, a ground lease agreement with mandatory improvements for 17,600
square feet of ground space known as Lease Site NW-3 ("Leased Premises"), at Spinks Airport
("Airport"). CSC No. 42807 shall hereinafter be referred to as the "Lease";
WHEREAS, on or about July 24, 2012, Lessor and Lessee entered into CSC No. 42807-
A1, to increase the northern boundary of the Leased Premises due to a grade change in elevation
which will allow for the adequate placement of the hangar building ("Mandatory
Improvements"). With the increase, the Leased Premises consists of a total of 18,700 square feet
of ground space; and
WHEREAS, in order for the adequate extension of water and sewer lines to be brought to
the Leased Premises from the main water line, the Lessee has requested to add a second tract of
ground space to allow for the incorporation of this extension; and
WHEREAS, Lessor and Lessee now wish to amend the Lease to reflect the original Leased
Premises of 18,700 square feet of ground space to be known as "Tract 1"5 and the addition of a
second tract of ground space consisting of 797 square feet to be known as "Tract 211; and
WHEREAS, Lessee has agreed to convey surface rights to a portion of Tract 2 that crosses
over an access road to the Air Traffic Control Tower ("ATCT"), and has further agreed to not
restrict vehicle or pedestrian ingress and egress to the ATCT.
NOW THEREFORE, in consideration of the mutual covenants, promises and obligations
contained herein, Lessor and Lessee herby agree as follows:
FWS Realty Ltd.
Amendment No. 2 to CSC No. 42807
Fort Worth Spinks Airport
Page 1 of 5
11-15-1� A10:32 IN
4 i, 1
ORTH, TX
1.
Section 1. PROPERTY LEASED shall be deleted in its entirety and replaced with the
following.
Lessor hereby demises to Lessee, and Lessee hereby demises from Lessor, in
accordance with the terms and conditions contained herein, two tracts of land
consisting of approximately 19,497 square feet known as Lease Site NW-3, at
Spinks Airport, as depicted on Exhibit "A" attached hereto ("Premises").
2.
Section 3. RENT is hereby amended to read as follows:
3.1.3 Rates
Commencing on the date the first certificate of occupancy is issued for a
hangar constructed on Lease Site NW-3 pursuant to Section 4.1 of this Lease
he "Occupancy Date") and continuing through September 30, 2012,
Lessee promises and agrees to pay Lessor, as annual rent for Lease Site NW-
3, the lesser of (1) $0.27 per square foot, for a total of $5,264.19, payable in
monthly installments of $438.68, or (ii) the rent amount per square foot of
the "Schedule of Rates and Charges" as promulgated by the Lessor for
Spinks.
3.
Section 5. Use of Premises is hereby amended to read as follows:
Lessee hereby agrees to use the Premises solely for aviation -related purposes and
strictlVT 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 the Air Traffic Control Tower. Lessee shall have the right to sublease
portions of the Premises, including individual hangars constructed as Mandatory
Improvements, to various third parties ("Sublessees") for aviation -related
purposes under terms and conditions acceptable to and determined by Lessee,
provided that all such arrangements shall be in writing. All written agreements
executed between Lessee and any Sublessees for any portion of the Premises shall
contain terms and conditions that (1) 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 subleased portion 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 in a fair and non-
discriminatory manner. Lessee shall use a standard sublease form for all
Sublessees and shall submit a copy of such standard lease form, not including
rental rates, to the Director prior to Lessee's execution of its first sublease and
FWS Realty Ltd.
Amendment No. 2 to 'No. 42807
Fort Worth Spinks Airport
Page 2 of 5
frOM time to time thereafter following any material changes to such sublease
form. Lessee shall make the rental rates for any sublease available for review by
Lessor, and shall verbally inform Lessor of such rental rates upon request.
Additionally, Lessee agrees to provide to Lessor in a timely manner any
documentation necessary to respond to any and all requests submitted to Lessor
by the Federal Aviation Administration. Lessee may make nonmaterial
modifications to its standard sublease to the extent that such are not contrary to
Lessor's Sponsor's Assurances (as same currently exist or as same may be
amended from time to time). Lessor shall protect Lessee's financial information to
the extent allowed by federal, state and local laws and regulations.
4.
All other provisions and conditions of the Lease that are not expressly amended herein or
directly in conflict with the provisions and conditions of this Amendment shall remain in full force
and effect.
[Signature Pages Immediately Follow]
FWS Realty Ltd.
Amendment No. 2 to CSC No. 42807
Fort Worth Spinks Airport
Page 3 of 5
IN WITNESS WHEREOF, the parties hereto have executed this Agreement in multiples
on this the EVV\. day of `�(,`� �,.NY `ICY' 520120
CITY OF FORT WORTH:
Fernando Costa
Assistant City Manager
Date: // J /Z
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
Ly�j�
EVONIA DANIELS
MY COMMISSION EXPIRES
Jury 10, 2013
APPROVED AS TO FORM
AND LEGALITY:
Charlene Sanders
Assistant City Attorney
M&c: 1*4�-ZS9q 1
Approved:
FWS Realty Ltd.
Amendment No. 2 to CSC No. 42807
Fort Worth Spinks Airport
Page 4 of 5
Public in and for the State of Texas
A'j'TF.CT�
By:
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
FWS REALTY, LTD by
Harrison Realty Investments, LLC
Its General Partner
By:
Haydn Cutler; Jr.
President
Date: U ^ 10 ^ L
STATE OF TEXAS §
COUNTY OF %AR8AAJ7— §
ATTEST:
BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on
this day personally appeared Haydn Cutler, 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 FWS
Realty, Ltd. and that he executed the same as the act of FWS Realty, Ltd. for the purposes and
consideration therein expressed and in the capacity therein stated.
GNEN UNDER MY HAND AND SEAL OF OFFICE this ��' day
d VEm 3 , 2013,
Public in and for th�lState of Texas
�p'(PAY F(�,_ RITA SINGLETON
.®, NOTARI' PUBLIC
STATE OF TEXAS
MY COMM, EXP 1VU012
FWS Realty Ltd.
Amendment No. 2 to CSC No. 42807
Fort Worth Spinks Airport
Page 5 01 5
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City of Fort Worth, Texas
LOG NAME: 55FWS AMENDTWO NWTHREE FWSREALTY
SUBJECT:
Authorize Execution of Amendment No. 2 to City Secretary Contract No. 42807, a Ground Lease
Agreement with Mandatory Improvements with FWS Realty, Ltd., for an Extension of Lease Site NW-3
Located at Spinks Airport (COUNCIL DISTRICT 8)
RECOMMENDATION:
It is recommended that the City Council authorize the execution of Amendment No. 2 to City Secretary
Contract No. 42807, a Ground Lease Agreement with mandatory improvements with FWS Realty, Ltd., for
an extension of Lease Site NW-3 located at Spinks Airport.
DISCUSSION:
On January 10, 2012, (M&C C-25389) the City Council authorized the execution of a Ground Lease
Agreement with mandatory improvements, City Secretary Contract (CSC) No. 42807, for 17,600 square
feet of ground space known as Lease Site NW-3 at Spinks Airport.
On July 24, 2012, (M&C C-25757) the City Council authorized the execution of Amendment No. 1 to CSC
No. 42807 to increase the northern boundary of the Lease Site due to a grade change in elevation which
allows for the adequate placement of the hangar building. Amendment No. 1 increased the Lease Site to a
total of 18,700 square feet of ground space.
Installation of additional water and sewer lines is required in order to develop Lease Site NW-3. Therefore,
the tenant has requested an additional 797 square feet to accommodate the lines. A portion of the
requested tract will crossover an access road to the Air Traffic Control Tower (ATCT), FWS has agreed to
convey the right for surface use of the access road and not restrict vehicle or pedestrian access to the
ATCT. With this provision in place for use of the access road, Staff finds no objection with the request, as
it will allow FWS to continue with mandatory improvements as required by CSC No. 42807.
Lease Site NW-3 will now consist of two ground space tracts:1) the original 18,700 square feet to be
known as Tract 1, and 2) the extension of 797 square feet to be known as Tract 2. The two tracts will
consist of a total of 19,497 square feet of ground space at a ground rate of $0.27 per square foot. Lease
Site NW-3 will generate $5,264.16 annually and $438.68 monthly. All other provisions and conditions of
the Lease shall remain in full force and effect.
Spinks Airport is located in COUNCIL DISTRICT 8.
FISCAL INFORMATION /CERTIFICATION:
FI
The Financial Management Services Director certifies that the Aviation Department is responsible for the
collection and deposit of funds due to the City.
Logname: SSFWS AMENDTWO NWTHREE FWSREALTY Page 1 of 2
FUND CENTERS:
TO Fund/Account/Centers
PE40 491052 0551201
CERTIFICATIONS:
Submitted for City Manager's Office by:
Originating Department Head:
Additional Information Contact:
5 264.19
FROM Fund/AccounuCenters
Fernando Costa (6122)
Bill Welstead (5402)
Jonnie Huitt (5409)
ATTACHMENTS
1. 55FWS Amend2 NW3 FWS Realty Exhibit.pdf (Public)
Logname: SSFWS AMENDTWO NWTHREE FWSREALTY Page 2 of 2