HomeMy WebLinkAboutContract 55215 CITY SECRETARY CONTRACT NO. 55 a 15
FORT WORTH MEACHAM INTERNATIONAL AIRPORT
RE HANGAR AND GROUND LEASE AGREEMENT
JAN 2 2 2f, LEASE SITE 3N
MYOFFORTWORT[I CO
CtIYSE-CREfARY <.
This HANGAR AND GROUND LEASE AGREEMENT ("Lease") is made and e tered
lnto by and between the CITY OF FORT WORTH ("Lessor"), a home rule mun cipal
corporation organized under the laws of the State of Texas and acting by and through Fernando
Costa, its duly authorized Assistant City Manager, and FIELDTECH AVIONICS, INC.
("Lessee"), acting by and through KEVIN P. NELMS, its duly authorized President.
RECITALS:
WHEREAS, Lessor and Lessee entered into City Secretary Contract ("CSC")No. 39628, a
hangar and ground lease agreement, for the lease of certain real property identified as Lease
Site 3N ("Premises"), at Fort Worth Meacham International Airport ("Airport")
(collectively the "Previous Lease"). The Previous Lease commenced on January 1, 20 9 for
a five-year term and allowed for a renewal at Lessee's option for one (1) additional ter of
five(5)years;
WHEREAS, the Lessee exercised its final option to renew pursuant to CSC No. 39628 for
the additional 5-year period which commenced on January I, 2015 and will expi e on
December 31, 2020; and
WHEREAS, due to the fact that the Previous Lease contains no further options to renew,
both the Lessee and Lessor have agreed to enter into a New Hangar and Ground Lease
Agreement that will commence on January 1, 2021, the day after the Previous ease
expires.
AGREEMENT:
In consideration of the mutual covenants, promises and obligations contained herein, the
parties agree as follows:
1. PROPERTY LEASED.
Lessor hereby demises to Lessee 71,864.78 square feet of ground space, with a
14,300 square foot hangar constructed, at Fort Worth Meacham International Airport
("Airport") in Fort Worth, Tarrant County, Texas, identified as Lease Site 3N, also known
as 4151 N Main Street, ("Premises"), as shown in Exhibit "A", attached hereto and
hereby made a part of this Lease for all purposes.
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Pagel o1723 CITY SECRETARY
2. TERM OF LEASE.
2.1. Initial Term.
The Initial Term of this Lease shall commence at 12:00 a.m. on January 1, 2021
("Effective Date") and expire at 11:59 p.m. on December 31, 2030, unless terminated
earlier as provided herein.
2.2 Renewal Term.
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)consecutive options to
renew this Lease each option for an additional successive term of five (5) years each
("Renewal Term") at a rental rate calculated in accordance with Section 3.1 of this Lease
and on terms and conditions that may be prescribed by Lessor at the time. Lessee shall
notify Lessor in writing of its intent to exercise a respective option not less than nine (90)
nor more than one hundred eighty (180) days prior to the expiration of the term t en in
effect. If Lessee does not exercise its option for a first Renewal Term within the time; frame
provided herein, Lessee shall automatically and simultaneously forfeit its second opt on to
lease the Premises for a second Renewal Term, and Lessee shall no longer have any ights
or interest in the Premises following the expiration of the Initial Term.
2.3. Holdover.
If Lessee holds over after the expiration of the Initial Term or any Renewal erm,
this action will create a month-to-month tenancy. In this event, for and during the hol over
period, Lessee agrees to pay all applicable rentals, fees and charges at the rates provi d by
Lessor's Schedule of Rates and Charges or similarly published schedule in effect at th time
of the Holdover. The hangar rate will be adjusted to equal the then Fair Market Val je, as
determined by Lessor's market analysis. In no case shall the hangar rate be less than the
value assessed upon completion of a property appraisal completed by a third patty v ndor
that has been approved and secured by Lessor. A ten percent (10%) increase will be added
to the Fair Market Value rate until a new lease agreement is approved and executed. The
holdover period will not exceed six (6) months from the time the current lease agreement
expires. Upon the expiration of the holdover period, the City may exercise all legal Ights
and remedies available, including but not limited to eviction.
3. Rates and Adjustments
The rental rates under this Lease are based on Lessor's current published Schedule of ates
and Charges. Rental rates are subject to increase beginning October 1, 2021, and on
October I" of any subsequent year during the Initial Term, to reflect any upward char ge in
the Consumer Price Index for the Dallas/Fort Worth Metropolitan Area, as announced by
the United States Department of Labor or successor agency (i) for the first increase, since
the Effective Date of this Lease and (ii) for each subsequent increase, since the eff ctive
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date of the last increase; provided, however, that Lessee's rental rates shall not exceed the
then-current rates prescribed by Lessor's published Schedule of Rates and Charges r the
type or types of property similar to the type or types of property that comprise the Premises.
3.1.1 Hangar Rate
Lessee shall commence the payment of rent for the Hangar on the Effective
Date. Lessee hereby promises and agrees to pay Lessor, as annual rent for
the Hangar, Eighty-Two Thousand Two Hundred Twenty-Five Dollars and
00/100 ($82,225.00), at a rate of Five Dollars and 75/100 ($5.75) per square
foot, payable in equal monthly installments of Six Thousand Eight Hundred
Fifty-Two Dollars and 08/100 ($6,852.08).
3.1.2 Ground Rate
Lessee shall commence the payment of rent for the Ground Space on the
Effective Date. Lessee hereby promises and agrees to pay Lessor, as annual
rent for the Ground Space, Thirty-Three Thousand Seven Hundred Seventy-
Six Dollars and 55/100 ($33,776.45), at a rate of Forty-Seven cents ( 0.47)
per square foot, payable in equal monthly installments of Two Tho 1sand
Eight Hundred Fourteen Dollars and 71/100 ($2,814.70).
3.2. Five-Year Adiustments
In addition to the Annual Rent Adjustments, on October 1, 2026, and eve fifth
(5th) year thereafter for the remainder of the Initial Term (i.e. on October st of
2031, 2036, and 2041), rent 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
Premises.
3.3. Ten-Year Adjustments
If near the end of the ten (10) year Initial Term, a Renewal Term has been requested
by the Lessee in accordance with section 2.2 of this Agreement, City will have an
appraisal performed by a qualified third-party appraiser to adjust the Hangar Rate to
equal the then Fair Market Value, for this type of property at airports similar to the
type or types of property that comprise the Premises.
3.4 Payment Dates and Late Fees.
Monthly rent payments are due on or before the first (1st) day of each tronth.
Payments must be received during normal business hours by the due date It 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 by close of business the
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tenth (loth) day of the month for which payment is due. Without limiting Le sor'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
Lessee may not initiate any improvement on or to the Premises unless i first
submits all plans, specifications and estimates for the costs of same to Les or in
writing, and also requests and receives in writing approval from Lessor's Dire for of
Airport Systems or authorized representative ("Director"). The improvennents
approved shall be referred to as "Mandatory Improvements", and would be added
as a separate amendment to this Agreement if they are approved by Lessor at that
time.
4.2 Discretionary Improvements.
Lessee may, at its sole discretion, perform modifications, renovations,
improvements or other construction work on any tract of the Premises. Lessee may
not initiate any Discretionary Improvement on or to the Premises unless it first
submits all plans, specifications and estimates for the costs of same to Lessor in
writing, and also requests and receives in writing approval from Lessor's Director of
Airport Systems or authorized representative ("Director"). Lessee covenan s and
agrees that it shall fully comply with all provisions of this Section 4 in the
construction of any such Discretionary Improvements. Lessor shall promptly
review, consider and decide on approval of such plans, specifications and estimates.
Upon completion of any such Discretionary Improvements or the termination of this
Lease, Lessor shall take full title to any Discretionary Improvements oil the
Premises.
4.3 Process for Approval of Plans.
Lessee's plans for construction of the Discretionary Improvements shall conform to
the Airport's architectural standards and must also be approved in writing by
Lessor's Planning and Development Department. 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. Lessor coverians and
agrees that Lessor shall handle any and all such plans for constructior and
improvement in a manner consistent with the provisions of Section 4.2 above.
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4.4 Documents.
Lessee shall supply the Director with comprehensive sets of documentation relative
to any Discretionary Improvement, including, at a minimum, a copy cf 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 Discretionary Improvements.
4.5 Bonds Required of Lessee.
Prior to the commencement of any Improvement, Lessee shall deliver to Le sor a
bond, executed by a corporate surety in accordance with Texas Government ode,
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 (i ) full
payments to all persons, firms, corporations or other entities with whonn 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 a 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 wh ch is
insured by the Federal Deposit Insurance Corporation and acceptable to Lessor 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 complew the
respective Improvements, or if claims are filed by third parties on grounds re ating
to such Improvements, Lessor shall be entitled to draw down the full amot.nt 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.
4.6 Bonds Required of Lessee's Contractors.
Prior to the commencement of any Discretionary Improvement, each of Lessee's
contractors 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 with
Lessee. Lessee shall provide Lessor with copies of such bonds prior to the
commencement of such Discretionary Improvement. 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 16r all
wages for labor and services and of all bills for materials, supplies and equii ment
used in the performance of the construction contract. Such bonds shall name both
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Lessor and Lessee as dual obligees. If Lessee serves as its own contractor, S ction
4.5 shall apply.
4.7 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 to the extent of
construction costs paid through that date upon (i) where Lessee serves as its own
contractor, verification that Lessee has completed construction work, or (ii) here
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 final waivers of liens.
Any unused amounts in the cash deposit account will be refunded to Lessee upon
final completion of the construction work.
5. USE OF PREMISES.
Lessee hereby agrees to use the Premises solely for aviation-related purposes onl and
strictly in accordance with the terms and conditions of this Lease. Lessee shall have the
right to sublease portions of the Premises to various third parties ("Sublessees' ) for
aviation-related purposes only under terms and conditions acceptable to and determined by
Lessee, provided that all such arrangements shall be in writing and approved in adva ce by
Lessor. 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 Leas ; (iii)
restrict the use of the Premises to aircraft storage or other aviation or aviation-r fated
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 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
without the prior written consent of Lessor.
6. REPORTS,AUDITS AND RECORDKEEPING.
Within thirty (30) days following the end of each calendar year, Lessee shall provide L essor
with a written annual report, in a form acceptable to the Director that reflects Lessee's ental
rates for the immediately preceding calendar year. Lessor may request, and Lessee shall
promptly provide, similar reports on a more frequent basis that reflect Lessee's rental rates
on the Premises for the period requested by Lessor. These reports shall be delivered to
Lessor's Department of Aviation at the address provided in Section 15. In addition, Lessee
shall keep and maintain books and records pertaining to Lessee's operations at the A rport
and other obligations hereunder in a manner satisfactory to Lessor's Internal Auditor nd at
a location within the City of Fort Worth. Upon Lessor's request and following reaso able
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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, shal have
the right to audit such books and records in order to ensure compliance with the terns 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 ise of
all utility services to all portions of the Premises and for all other related utility exp nses,
including, but not limited to, deposits and expenses required for the installation of n eters.
Lessee further covenants and agrees to pay all costs and expenses for any exte ision,
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
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 sa itary
condition at all times, reasonable wear and tear expected. Lessee covenant3 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 preve t the
deterioration in condition or value of the Premises, including, but not limited t , 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 inder
Lessee. Lessor shall not be liable for any damage to such property or loss su ered
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 s urce
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 i full
compliance at all times with the Americans with Disabilities Act of 190, as
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amended ("ADA"). In addition, Lessee agrees that all improvements it ma Ces 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, aDrents,
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
notify Lessee in writing. Lessee agrees to begin such maintenance or epair
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 essee
fails to begin the recommended maintenance or repairs within such tirne 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 Les or is
authorized or required to perform under the terms of this Lease or pursuant
to its governmental duties under federal, state or local laws, rul s or
regulations.
8.3.4. Lessee will permit the City's Fire Marshal or his or her authorized age is 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 TH.4 TIT
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SHALL BE FULLY RESPONSIBLE FOR THE REMEDIATION OF ANY
VIOLATION OF ANY APPLICABLE FEDERAL, STATE OR LOCAL
ENVIRONMENTAL REGULATION OR STANDARD THAT IS CAUSE 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, install
and maintain signs on the exterior of the Premises related to Lessee's business 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 build ng or
other structure which, in the opinion of Lessor, would limit the usefulness f the
Airport, constitute a hazard to aircraft or diminish the capability of existing or 11ture
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 constnied 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 agre ment
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 m terial
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 3even
(7) calendar days, Lessee and Lessor shall negotiate in good faith to resole 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 belween
seven (7) and one hundred eighty (180) days, then for such period (i) Lessed may
suspend the payment of any rent due hereunder, but only if Lessee first pr vides
adequate proof to Lessor that the Limitation has directly caused Lessee a material
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loss in revenue; (ii) subject to ordinary wear and tear, Lessor shall maintai 1 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 re t 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.
10.4 During any war or national emergency, Lessor shall have the right to lease an part
of the Airport, including its landing area, to the United States Government. la 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) cal ndar
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 resole or
mitigate the effect of the Limitation, and the Limitation lasts between seven ( ) and
one hundred eighty (180) days, then for such period (i) Lessee may suspe d 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. f the
Limitation lasts more than one hundred eighty(180) days, then (i) Lessor and L essee
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' lAritten
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 pu suant
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 Assurance,.
10.6 Lessee's rights hereunder shall be subject to all existing and future utili 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
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rights shall additionally be subject to all rights granted by any ordinance or s atute
which allows utility companies to use publicly-owned property for the provisi n of
utility services.
10.7 Lessor agrees Lessee shall have the right of ingress and egress to and froin the
Premises by means of roadways for automobiles and taxiways for aircraft incl ding
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
and regulations with respect to the occupancy and use of airport premises as ad pted
from time to time by the City of Fort Worth and by the Federal Av ation
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 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 specified Lo be
maintained by a commercial tenant in accordance with Exhibit `B", 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 imits
on existing coverages, are subject to change at Lessor's option and as necess ry 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. Lessee shall procure and maintain at all times, in full force and effect, a pol cy or
policies of insurance as more particularly set forth in Exhibit"B", which is attached
hereto and incorporated herein for all purposes.
11.3 As a condition precedent to the effectiveness of this Lease, Lessee shall fitimish
Lessor with appropriate certificates of insurance signed by the respective ins ance
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
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shall, at Lessor's request, provide Lessor with evidence that it has maintainec such
coverage in full force and effect.
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 operatio s and
activities on the Premises and shall be solely responsible for the acts and omissions of its
officers, agents, servants, employees, contractors, subcontractors, patrons, licensee and
invitees. Lessee acknowledges that the doctrine of respondeat superior shall not ap ly as
between Lessor and Lessee, its officers, agents, employees, contractors and subcontr ctors.
Lessee further agrees that nothing herein shall be construed as the creation of a partnership
or joint enterprise between Lessor and Lessee.
13. INDEMNIFICATION.
LESSEE HEREBY ASSUMES ALL LIABILITY AND 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
L OCA TION OF THE PREMISES, EXCEPT TO THE EXTENT CA USED B Y THE
GROSS NEGLIGENCE OR INTENTIONAL MISCONDUCT OF LESSOR, ITS
OFFICERS,AGENTS, SERVANTS OR EMPLOYEES.
DURING THE TERM OF THIS LEASE, LESSEE COVENANTS AND AGREES TO,
AND DOES TO THE EXTENT ALLOWED BY LAW, WITHOUT WAIVING ANY
DEFENSES PROVIDED BY LAW, HEREBY INDEMNIFY, HOLD HARMLESS AND
DEFEND LESSOR, ITS OFFICERS, AGENTS, SERVANTS AND EMPLO EES,
FROM AND AGAINST ANY AND ALL CLAIMS OR LAWSUITS FOR EI HER
PROPERTY DAMAGE OR LOSS, INCLUDING ALLEGED DAMAGE OR L OS Y TO
LESSEE'S BUSINESS AND ANY RESULTING LOST PROFITS, AND/OR
PERSONAL INJURY, INCLUDING DEATH, TO ANYAND ALL PERSONS, OF ANY
KIND OR CHARACTER, WHETHER REAL OR ASSERTED, ARISING OUT O OR
IN CONNECTION WITH LESSEE'S USE OF THE AIRPORT UNDER THIS L ASE
OR WITH THE USE, LEASING, MAINTENANCE, OCCUPANCY, EXISTENCE OR
LOCATION OF THE PREMISES, EXCEPT TO THE EXTENT CAUSED BY THE
GROSS NEGLIGENCE OR INTENTIONAL MISCONDUCT OF LESSOR, ITS
OFFICERS AGENTS, SERVANTS OR EMPLOYEES.
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 WITHANYAND ALL ACTS OR OMISSIONS
OF LESSEE, ITS OFFICERS, AGENTS, EMPLOYEES, CONTRAC ORS,
Fieldtech Avionics,Inc.Hangar 3N
Hangar and Ground Lease Agreement
Fort Worth Meacham Airport
Page 12 of23
SUBCONTRACTORS, LICENSEES OR INVITEES, EXCEPT TO THE EXTENT
CAUSED BY THE GROSS NEGLIGENCE OR INTENTIONAL mtscoNDucr 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 SECUJUTY
LESSEE SHALL PAY ALL FINES IMPOSED BY THE FAA ON LESSOR OR
LESSEE RESULTING FROM LESSEE'S OR ANY SUBLESSEES' FAILUR4 TO
COMPLY WITH SUCH FAA REGULATIONS OR TO PREVENT UNAUTHORIZED
PERSONS OR PARTIES FROM 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 ha e 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, L,essor
shall deliver to Lessee a written invoice and notice to pay the invoice within to (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.
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 terrnir ation
of this Lease by Lessor.
Fieldtech Avionics,Inc.Hangar 3N
Hangar and Ground Lease Agreement
Fort Worth Meacham Airport
Page 13 of23
14.4. Lessee's Financial Obli ations to Lessor upon Termination Breach or Default.
If Lessor terminates this Lease for any non-payment of rent, fees or other charges or
for any other breach or default as provided in Sections 14.1, 14.2 or 14.3 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 fights
under this Lease.
14.5. Rights of Lessor Upon Termination or Expiration.
Upon termination or expiration of this Lease, all rights, powers and priv leges
granted to Lessee hereunder shall cease and Lessee shall vacate the Premises.
Within twenty (20) days following the effective date of termination or expir tion,
Lessee shall remove from the Premises all trade fixtures, tools, mach nery,
equipment, materials and supplies placed on the Premises by Lessee pursuant 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 determitied 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: To LESSEE:
City of Fort Worth Fieldtech Avionics, Inc
Aviation Department 4151 N. Main Street
201 American Concourse, Suite 330 Hangar 3N
Fort Worth, TX 76106 Fort Worth, Texas 76034
Fieldtech Avionics,Inc.Hangar 3N
Hangar and Ground Lease Agreement
Fort Worth Meacham Airport
Page 14 of23
16. ASSIGNMENT AND SUBLETTING.
16.1. In General.
Lessee shall have the right to sublease portions of 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, all terms, covenant.s 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 co tract
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 cot 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 c f 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 discharge(.
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.
Fieldtech Avionics,Inc.Hangar 3N
Hangar and Ground Lease Agreement
Fort Worth Meacham Airport
Page 15 of23
Lessee agrees to comply with all federal, state and local laws; all ordinances, rule and
regulations of Lessor; all rules and regulations established by the Director; and ail 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 and its officers, agents, employees, contractors,
subcontractors, licensees or invitees shall immediately desist from and correct the violation.
19.1 Compliance with Minimum Standards and Schedule of Rates and Charges:
Lessee hereby agrees to comply at all times with the City's Minimum Standar s, as
may be adopted by the City Council from time to time. Lessee shall be bound by
any charges adopted in the City's Schedule of Rates and Charges, as may be adopted
by the City Council from time to time.
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, trans€; nder,
gender identity or gender expression. Lessee further agrees for itself, its pe; sonal
representatives, successors in interest and assigns that no person shall be excluded fro-Ti 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 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 these regulations whic may
hereafter be enacted.
If any claim arises from an alleged violation of this non-discrimination covenant by I. ssee,
its personal representatives, successors in interest or assigns, Lessee agrees to inde rinify
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.
Fieldtech Avionics,Inc.Hangar 3N
Hangar and Ground Lease Agreement
Fort Worth Meacham Airport
Page 16 of23
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.
23. NO WAIVER.
The failure of Lessor to insist upon the performance of any term or provision of this ease
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 ction
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' FEES.
In the event there should be a breach or default under any provision of this Lease and, ither
party should retain attorneys or incur other expenses for the collection of rent, f es 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 ornissi n of
performance due to force majeure or other causes beyond their reasonable c ntrol,
including, but not limited to, compliance with any government law, ordinance or reguil tion,
acts of God, pandemics, acts of omission, fires, strikes, lockouts, national disasters, wars,
riots, material or labor restrictions, transportation problems or any other cause beyond the
reasonable control of Lessor or Lessee.
Fieldtech Avionics,Inc.Hangar 3N
Hangar and Ground Lease Agreement
Fort Worth Meacham Airport
Page 17of23
28. 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.
29. 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 pri r 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.
30. CHAPTER 2270 OF THE TEXAS GOVERNMENT CODE.
Lessee acknowledges that in accordance with Chapter 2270 of the Texas Government Code,
the City is prohibited from entering into a contract with a company for goods or services
unless the contract contains a written verification from the company that it: (1) dos not
boycott Israel; and (2) will not boycott Israel during the term of the contract. The terms
"boycott Israel" and "company" shall have the meanings ascribed to those terms in Section
808.001 of the Texas Government Code. By signing this Lease, Lessee certfej that
Lessee's signature provides written verification to the City that Lessee: (1) doev not
boycott Israel,and(2) will not boycott Israel during the term of the Lease.
[Signature Pages Follow]
Fieldtech Avionics,Inc.Hangar 3N
Hangar and Ground Lease Agreement
Fort Worth Meacham Airport
Page 18 of23
IN WITNESS WHEREOF, the parties hereto have executed this Agreement in multi les
on this the 15" dayofjdLrjU.QAM 2021.
CITY OF FORT WORTH:
By: / ia�aloL
Fernando Costa
Assistant City Manager
Date:T�Z0Z/
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 o 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 � � day
12021.
SELENA ALA
Notary Public, State of Texas
: 0.`; Comm.Expires 03-31-2024
}`' No ary Pub is in and for the State of texas
OF % Notary ID 132422528
APPROVED AS TO FORM ATTEST: yam'
r$
AND LEGALITY: KY
By: By: �.
Thomas Royce Hansen, ay Kayser, City Secretary
Assistant City Attorney
M&C: o2 1— OOL( Q
Approval Date: January 12,2021 Zj;
Form 1295 Certificate#: M&C-21-0049
habl US
Aviation Director
Fieldtech Avionics,Inc.Hangar 3N OFFICIAL RECORD
Hangar and Ground Lease Agreement CITY$EC�F A1ay
Fort Worth Meacham Airport
Page 19 of23 FT. WORTH TX
Contract Compliance Manager:
By signing, I acknowledge that I am the person responsible for the monitoring and administration
of this contract, including ensuring all performance and reporting requirements.
��"�
Real Property Manager
Barbara Goodwin
Print Name
FIELDTECH AVIONICS,INC.: ATTEST:
By: By:
Kevin P.Aefr s
Duly Authorized President
Date:
STATE OF TEXAS §
COUNTY OF l cirvayt §
BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, n
this day personally appeared KEVIN P. NELMS, 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
FIELDTECH AVIONICS, INC. and that s/he executed the same as the act of FIELDTECH
AVIONICS, INC. for the purposes and consideration therein expressed and, in the capacity,
therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this 11 ,4 ti, day
1.7oy,ew,b�r ,2020.
KATRINA CLICKf �,,�� -
®¢ Notary Public,State of Texas Notary Public in and for the State of Texas
Notary I0 776012-1
My Commission Exp.03-21.2021
Fieldtech Avionics,Inc.Hangar 3N OFFICIAL RECORD
Hangar and Ground Lease Agreement
Fort Worth Meacham Airport CITY SECRETARY
Page 20 of 23
FT.WORTH,1'X
EXHIBIT A
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Fieldtech Avionics,Inc.Hangar 3N
Hangar and Ground Lease Agreement
Fort Worth Meacham Airport
Page 21 of23
EXHIBIT B
FORT WORTH
"Mom EXHIBIT -MINIMUM INSURANCE REOUIREMEMTS
�� Conene vial � Errvianmental Aiccra8 and Passenger Autcrncbile Ltwity tiro
Category General
Impairment IncYLde Hired&Nlor n- �ned
Insurance L'abillih Ljabftl u b0ity Liability 'dehiOeesl 6
Fixed Base Opeamns(FBO's) Yes $t DD0,000 SV,DD0.000 3I DD3,000 3 I;.1:10,D00
Arcraft Maintenance Operator and
Avionics or Instrument Maintenanoe 's $t.000.000 51,faA00 3 1.00D.DDO
-Piston
Arcraft Maintenmre Operator and
Avionics or Inswnnent Maintenance 's $5.DD0,000 $1.000A00 $ 1,ODD,000
O -Turbene
Avionics or Instrunwnt Maintenance $1,000,OOU S 1 ODD,000
Operator{Berich work Ortlyy
Arcraft Rental or Flight Training 51.ODD,DDO 4 $1.�,�t 3 1.000A00
Operator s 3100,OL>tillpassenger
Arcraft Charter or Aircraft risen$6,000,000ioccxurence 5 1.000,000
Ma►agement Operator 51000.000 $1W,0M(P g er
Arcraft Saks Operator $1 ODO 000 $1,000,000toccurrence $ 1.0DD.DD0
s 3100,0mpassenger
's 51,000,ODD $1,000,00o
Arcraft Storage Operator
's 55,D0D,000' 35,000.000 r 5 1.000,000
Avis=Service Sob PrvpWor '5 31,0DD.ODO a $1.ODO,00(Vocwtenc+ 5 2-50,D00
$100.00Olpassenper
Other Commercial Aeronautical 51,0DD.W0 $300.ODDFoxnmence $ 1,00D.DW
Activities
Temporary Specialized Aviation 51.ODD.DDO $300,0DWbecurnrve $ 1.OM.D00
Service OveratDr
Nan-Cemmercal Hangar Lessee 's $=01)OJoccvrrenoe $ 1.000,000
Nan-Commercial Flying Club 4s $I,ODD,O=cccurrence $ 1.0DD,W0
100.0DO sen r
Non-Commercial Self-Fueling 3 5 1,0DD,DD0 $1.0D0,0D0 $=.ODD/oeeerrence $ I.OM,D00
Non-Commercial Sell`-Fueling
Pennitee s $.W.DDO $300,OOD4oc currence S 250,000
,'Alternative Fuds e. .mooas
Box Hangar,T-ftarngar,Comnw q -s 5300,ODDrotxurtence S 2fC,000
Hangs
Other 'Insurance requ itennrnh subject to detrmir aRan by Aviaton Department and Risk Managrnem.
Additional Insurance Requirements
4-essee's poicles are to be primary to any adw raid and collectible irmrarnce avabble to the City
,All policies shall include a Waiver of Subrogation in favor of the City(Temporary SASO must also include Akporl Lessee)
-The City of Fart Worth shall be named as Addi6arnal Insured(Temporary SASO rat also include Airport Lessee)
42oimes shall have no exclimio s by endasernent vdriah.nenifr miffiryor amend to required Ones of coverage,nor decrease the limits of sad coverage
'Coverage per aire-raft show be equivalent to the average an raft value at one time and ccwrerage per ooeunence should to equivalent to the average of the
ma ovum value aF total aroradt at ant time,but not less than One amount nosed alcove
9 Must ndude NeyUMA kIS1t SWM Coverage
I N aicraR storage Operator a pmvifg skin sing space for wcrA storage
4 Orly,,gW far lhase prW*g fgrt im MjCfiW
a Depends on terms of the lease agreement
e If vehicle parked landside-State minimums would apyly
Aviation ilinimum Standards. CityoF Fat WorthAvialton Department(M.K',2014) 71
Fieldtech Avionics,Inc.Hangar 3N
Hangar and Ground Lease Agreement
Fort Worth Meacham Airport
Page 22 of 23
DEFIidITIONS:
Coverage fort*Building indudes(but is not limited to)the building and structures,completed addi0oris to covered
buildings,outdoor fixtures,permanently installed fixtures,machinery and equipment The building rixaterial used to
maintain and service the unured's premises is also enured. Business Personal Property owned by insured and
used in the insired's business is covered for died loss or damage. The coverage includes(but is rict fmited to)
furniture and fahures,stock,improvements and betterments,leased property for which you have a ntractual
similar
obbgation to insure and several other business properly items when not specifically exak d 7from coverage.
The policy is also designed to protect the insured against loss or damage to the Personal Property of Others tree
in the insureds care,custody and control.
PROPERTY'INSUR-2 NCE
Business Income(sometimes called Business Interruption)affords protection against the loss of ea ings of a
business during the time required to rebind or repair covered property damaged or destroyed by or some aflv:r
insured cause of loss.
Extra Expense allows coverage for those additional expenses over and above normal operating expoprtses paid due
to damage to covered property loom a covered cause of loss_ These expenses could include rent s,moving
expenses,telephone.advertising and tabor.
This coverage protects the insured for bodily inury or property damage to the third parties,for whict they are legaity
liable.The policy covers accidents occurring on the premises or away from the premises. Covera is provided for
injury or damages arising out of goods or products made or sold by the narned ensued Coverage afforded for
the named inured and employees of the named insured:however.several individuals and organiza xm other than
the named insured maybe covered deperdirg upon certain cinxi mstances specified in the poky. I addition to the
limits,the poky provides supplemental payments for attorney fees,court costs and other expenses associated with
a claim or the defense of a hatxdty suit.
Coverage A-Bodily Injury and Property Damage Liabfty
COXWERCIAL GENERAL Bodily Injury means physical erlury,sickness or disease,eh death. Property Damage means physical injury
LIABILITY' to tangible property,including the resulting toss of use of that property.
Coverage B-Personal Injury and Advertising Injury liability
Personal injury means false arrest,malicious prosecution,wrongli entry or eviction.libel,slanderviolations of
a persons right of privacy. Advertising irjury means libel,slander,olsparagemeri,violations of a arils right of
prvacy,misappropriation and copyright infringement
Coverage C-Medical Payments
Medical Payments means medical expenses for bodily injury caused by an accident.
H a,\GARKEEPII2S Insures the hanger operator for legal obligations to pay damages due to loss to an aircraft that rs when the
a rcra3 is in the cane,custody or connol of the insured for safekeeping,storage,service or repair_Coverage
LIABILM extends to labldy claims involving an a ncrafl s loss of use.
Insures the pollution exposure associated with the insureds property and operations,Including cos of cleanup arxi
remedial or corrective action due to a third-party demand or a goveenntem order.The Pollution exdVsjon in general
habilly insurance effectively eliminates coverage for damages for badly injury,property darnage and cleanup costs
IMPI MENI LIABILM arising dram most types of pollution everds.Because of this,customaed protection for the pDlkrtion exposure of
numerous insureds in this,category is essential.
Coverage geared specifically to the operation of aircraft and the risks involved in aviation.Aviation insurance
policies are distinctly different from those far ather areas of transportation and tend to incorporate aviation
AIRCRAFT AND terminology,as well as termmobgy,Emits and clauses specilicto aviation insurance.Passenger liablity protean
PASSENGER LIABILM passengers riding in the ac6dert atroraft vh,.D are iryuned or killed.In many countries this coverage is mandatory
arty for commercial or Large aircraft Coverage is often sold on a"per-seaf basis,wth a specified"it for each
passenger seat
The liability coverage oft*Business Auto Policy provides protection against legal fiabitty arising of the
AUTOMOBILE LIABILIII ownership.maintenance or use of any insured automobile. The insuring agreement agrees to pay r badly injury
or property damage r which the insured is legally responsible because of an aulomobAe accident Th
e he policy also
NON-OWNED V MCLEsi states that,in addition to the payment of damages,the insurer
also agrees to defend the inured fo}all Legal
defense cost. The defense is in addition to the policy limits.
WAIVER OF An agreement between two parties in Which one party agrees to waive subrogation rights against another in the
SUBROGATIONevent of a loss. The intent is to prevent one party's insurer from pursuing ling subrogation against the o r party.
Fieldtech Avionics,Inc.Hangar 3N
Hangar and Ground Lease Agreement
Fort Worth Meacham Airport
Page 23 of 23
1/13/2021 M&C Review
CITY COUNCIL AGENDA KIVVORIB
DATE: 1112,202,REFERENCE•'M&C 21-LOG NAME: 55FTW HGR GRND LEASE 3N
NO.: 0049 FIELDTECH AVIONICS
CODE: C TYPE: CONSENTPUBLIC NO
HEARING:
SUBJECT: (CD 2)Authorize the Execution of a New Hangar and Ground Lease Agreement for
Approximately 71,864.78 Square Feet of Ground Space Including a 14,300 Square Foot
Hangar known as Lease Site 3N with Fieldtech Avionics,Inc.at Fort Worth Meacham
International Airport
RECOMMENDATION:
It is recommended that the City Council authorize the execution of a new Hangar and Ground Lease
Agreement for approximately 71,864.78 square feet of ground space,including a 14,300 square foot
hangar known as Lease Site 3N with Fieldtech Avionics,Inc.at Fort Worth Meacham International
Airport.
DISCUSSION:
On or about January 1,2009,the City of Fort Worth(City)and Fieldtech Avionics,Inc.(Fieldtech)
entered into City Secretary Contract(CSC) No.39628, a hangar and ground lease agreement for
Lease Site 3N,consisting of 71,864.78 square feet of ground space and 13,162 square feet of hangar
space located at Fort Worth Meacham International Airport(Airport). CSC 39628 commenced on
January 1,2009 for a five-year term and allowed for a renewal at Lessee's option for one(1)additional
term of five(5)years. Pursuant to CSC 39628, Lessee exercised its final option to renew for an
additional five-year period which commenced on January 1,2015 and will expire on December 31,
2020.
Improvements completed by the Lessee expanded the Hangar footprint by 1,138 square feet for
additional office space.
The City and Fieldtech now wish to enter into a New Hangar and Ground Lease Agreement that will
commence on January 1,2021 for a ten-year lease term to expire on December 31,2030. The lease
will provide for two(2)consecutive options to renew for five(5)years each.
Annual Revenue generated from the Hangar is approximately$82,225.00,paid in monthly installments
of approximately$6,852.08.Annual Revenue from the Ground Space is approximately$33,776.45,
paid in monthly installments of approximately$2,814.70. Rates are in accordance with the Aviation
Department's current Schedule of Rates and Charges and the Aviation Department's Leasing Policy.
All terms and conditions of the lease agreement will be in accordance with City of Fort Worth and
Aviation Department policies.
Rental rates shall be subject to an increase on October 1st of any given year,based on the upward
percentage change in the Consumer Price Index for the Dallas-Fort Worth Metropolitan area.At no
time will the adjusted rate exceed the rate that is current in the Schedule of Rates and Charges. Five-
year rate adjustments will be applied to the ground rate starting on October 1,2026,and every fifth
year thereafter.
If near the end of the ten(10)year Initial Term,a Renewal Term has been requested by the Lessee,
City will have an appraisal performed by a qualified third-party appraiser to adjust the Hangar Rate to
equal the then Fair Market Value,for this type of property at airports similar to the type or types of
property that comprise the Premises.
ADVISORY BOARD APPROVAL: On November 12, 2020, the Aviation Advisory Board voted to
recommend that the City Council approve the Hangar and Ground Lease Agreement.
Fort Worth Meacham International Airport is located in COUNCIL DISTRICT 2.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendation and execution of
the lease,funds will be deposited into the Municipal Airport Fund. The Aviation Department(and
Financial Management Services)is responsible for the collection and deposit of funds due to the City.
TQ
Fund Department Account Project Program Activity Budget Reference p Amount
ID ID __ Year (Chartfield 2)
FROM
Fund Department Account Project Program Activity I Budget Reference it Amount
ID ID i Year (Chartfield 2)
Submitted for City Managers Office by_ Fernando Costa(6122)
Qdginating Department Head: Roger Venables(6334)
Additional Information Contact: Ricardo Barcelo(5403)
ATTACHMENTS
t 1y 9 FiW HGR GRND LEASE 3N FIELDTECH AVIONICS pd
apps.cfwnet.org/counciI_packet/mc_review.asp?I D=28601&counciIdate=1/12/2021 1/1