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HomeMy WebLinkAboutContract 41118CITY SECRETARY CONTRACT NO. L\ \\\ '.B UNIMPROVED 1 GROUND LEASE LEASE SITE NO. IO/HANGAR 9-S FORT WORTH MEACHAM INTERNATIONAL AIRPORT This UNIMPROVED GROUND LEASE AGREE1\1El''ff ("Agreement") is made and entered into by and be tween the CITY OF FORT WORTH, TEXAS ("Lessor"), a home rule municipal corporation organized under the laws of the State of Texas, aeting by and through its duly aufuorized Assistant City Manager FERNANDO COSTA, and DON E. HANSEN ("Lessee") an Individual. RECITALS The follo"'':ing introductory provisions are true and. correct and form the basis of this Agreement: A.Lessor and Don E. Hansen previously entered into City Secretary Contract ("CSC") No. 8938, as amended byCSC Nos. 9123 and 17327 and assigned to Lessee pursua nt to CSC No. 18968 (the "Lease"), a lease of real property at Fort Worth Meacham Internat ional Airport ("Airport") known as Lease Site No. 10 (Hangar 9-S) (the "Leased Premises"). The Lease is a public document on file in Lessor's City Secretary's Office.B.Pursuant to CSC No. 28264, Lessor consented to the execution of a Deed of Trust between Lessee and Summit Bank, N.A. under which Lessee gave Summit Bank, N.A. a lien on Lessee's leasehold interest in the Leased Premises. C.On or about December 30, 2002, pursuant to CSC No. 28262, Lessee, Sandpiper Airport Inn, Inc., ass igned all of Lessee's right, title and interest in fue Leased Premises to Assignee, Don E. Hansen; and Lessor consented to such assignment based on all terms and conditions set forth in the Consent.D.Lease Site No. IO (Hangar 9-S) shall hereinafter and collectively be referred to as the"Leased Premises," and CSC Nos. 8938, 9123, 17327, 18968 and 28262 shall hereinafter and collectively be referred to as the "Previous Lease."E.In exchange for significant improvements to the Leased Premises, Lessee has requested, and the City has consented, to cancel all terms and conditions of the Previous Lease, and enter into a New Lease Agreement (the "Lease") with Lessee.NOW, THEREFORE, in consideration of the mutual covenants, promises and obligations contained herein, the parties agree as follows: 1.PROPERTY LEASED.1As of October 1, 2009, Fort Worth Aviation Schedule of Rates and Charges no longer diffei:_entiates between unimproved and improved land, Unimproved Ground Lease Agreement Don E. Hansen Hangar 9S Page I 11-16-10 A11:48 IN Lessor hereby demises to Lessee approximately 100,324.08 square feet of unimproved ground space at Fort Worth Meacham International Airport ("Airport"} in Fort Worth, Tarrant County, Texas, ("Prezruises"), as shown in Exhibit "A," attached hereto and hereby made a part of this Lease for aIl purposes. 2. TERM OF LEASE. 2.1 Initial Term The term of this Lease shall commence on the date of execution ("Effective Date") and expire at 1 I:59 P.M. on May 31, 2U26, 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 Tenn af this Lease, Lessee shall have two (2) consecutive options to renew this Lease far additional successive terms of five (5) years each (each a "Renewal Ternr�") at a rental rate calculated in accordance with Section 3.1 of this Lease and on terms and conditions that may be prescribed by Lessar at the time. Lessee shall notify Lessor in writing of its intent to exercise a respective option not less than ninety (90) nor more ihan one hundred eighty (184) days prior to the expiratian of the term then 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 option to lease the Premises for a second Renewal Terin, and Lessee shall no longer have any rights or interest in the Premises following the expiration of the Initial Term. 2.3. Holdover. If Lessee halds over after the expiration of the Initial Tenn ar any Renewal Tenn, 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. RENT. 3.1. Annual Rent for Premises. Lessee shall commence the payment of rent on the Ef%ctive Date of this Lease and continue as follows: 31.1. From the Effective Date until May 31, 2016, Lessee shall pay Lessor, at a rate af $0.08 per square foot, annual rent in the amount of Eight Thousand and Twenty Five Dollars and 93/140, (�$,025.93), which will be payable in twelve Unimproved Ground Lease Agreement Don E, Hansen Hangar 95 Page 2 monthly installments of Six Hundred Sixty Eight Dollars and 83/100, (�668.83} each. 3.1.2. On June 1, 2016, Lessee's rental rate shall be adjusted to equal the then- current Crround Rental Rate prescribed by the Schedule of Rates and Charges %r the type or types af property at the Airport similar ta the type or types of property that comprise the Premises. 3.2 Rent Adiustments. On �ctober 1, 2016, and on October 1st of each year thereafter, Lessee's rental rate shall be subject to increase by Lessor to reflect the upward percentage change, ii any, in the Consumer Price Index ("CPI"} for the Da11as/Fort Worth Metropolitan Area, as anzzounced by tlie United States Department of Labor or successor agency during the preceding twelve-month period ("CPI Change"). If there is no CPI Change or the CPI Change is downward, the rental rate for the Preinises shall remain constant until the %llowing October 1St. In no event shall the rental rate for the Premises ever be adjusted downward or ever exceed 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. Five-Year Adiustments. In addi�ion to the Annual Rent Adjustments, on October 1, 2016, and every fifth (5�) year thereafter for the remainder of the term of the Lease, rent shall automarically be adjusted to equal the then-current rates prescribed by the Schedule of Rates and Charges far the type or types of property at the Airport similar to the type or types of property that cormprise the Premises. 3.4. Payment Dates and Late Fees. Monthly rent payments are due on or before the first (1 st} day of each inonth. Payments �nust be received during normal working hours by the due date at the location for Lessor's Aviation Departzzient set forth in Section 14. Rent shall be considered past due if Lessor has not received full payment after the tenth (10th) day of the month for which payment is due. Without liiniting Lessor's termination r�ghts 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. UTILITIES. Lessee, at Lessee's sole cost and expense, shall be responsible for the installation and use of all utility service to all portions of the Premises and for all ather related utility expenses, including, but not limited to, deposits and expenses required for the installation of ineters. Lessee further covenants and agrees to pay all costs and expenses for any extension, installation, maintenance or repair of any and all utilities serving the Premises, including, but not limited to, Unimproved Ground Lease Agreement Don E. Hansen Hangar 9S Page 3 water, sanitary sewer, electric, gas and telephone utilities. In additian, 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. 5. MAINTENANCE AND REPAIRS. 5.1. Maintenance and Repairs b� Lessee. Lessee agrees to keep and maintain the Premises in a good, clean and sanitary condition at all times. Lessee covenants and agrees that it will not make or suffer any waste of the Premises. Lessee will, at Lessee's sole cost and expense, make all repairs necessary to prevent the deteriorarion in condition or va�ue of the Premises, including, but not lnnited to, the maintenance of and repairs to all struchues, including, but not limited to, doors, windows and roofs, and all fixtures, equipment, modifications and pavement on the Premises. Lessee shall be responsible for all darnages caused by Lessee, its agents, servants, employees, contractors, subcontractors, licensees or invitees, and Lessee agrees to fully repair or otherwise cure all such damages at Lessee's sole cost and expense. Lessee agrees that, except as otherwise expressly provided herein, all improvements, trade fixtures, fumishings, equipment and other personal property of every kind or description whicl� may at any tizne 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 Lessee's sewer or steam pipes, froin 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. 5.2. Comnliance 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. 5.3. Inspection. 5.3.1. 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 any such inspection during Lessee's ordinary business hours and shall use its best efforts to provide Lessee at least twenty-four {24} hours notice prior to inspection. 5.3.2. If Lessor determines during an inspection of the Premises that Lessee is responsible under this Lease for any maintenance or repairs, Lessor shall notify Unimproved Ground Lease Agreement Don E. Hansen Hangar 95 Page 4 Lessee in writing. Lessee agrees io 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 wifhin a reasonable time, cansidering the nature of the work to be done. If Lessee fails to begin the recomnra�ended inaintenance or repairs within such time ar fails to complete the maintenance or repairs within a reasonable time, Lessar 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 ar repairs. 5.3.3. During any inspection, Lessar may perfonn any obligations that Lessor is authorized or required to perform under the tezms of this Lease or pursuant to its governmental duties under federal, staie or local laws, rules or regulations. 5.3.4. Lessee will permit the City's Fire Marshal or his ar her authorized agents to inspect the Premises and Lessee will comply with all requirements af the Fire Marshal ar his or her authorized agents that are necessary to bring the Premises into compliance with the City of Fort Worth Fire Code and Suilding 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 ar his ar her authorized agents for the particular hazard involved. 5.4. EnvironmentaI Remediation. To the best of Lessor's knowledge, the Premises comply with all applicable federal, state and local enviranmental and indemnification laws, statutes, regulations ar standards. Lessee agrees that it has inspected the Premises and is fully advised of its own rights without reliance upon any representation made by Lessar concerning the envirorunental condition of the premises. LESSEE, AT ITS SOLE COST AND EXPENSE, AGREES THAT IT SHALL BE FULLY RESPONSIBLE FOR THE REMEDIATION OF ANY VIOLATION OF ANYAPPLICABLE FEDERAL, STATE OR LOCAL ENV.IRONMENTAL REGI.ILATIONS OR STANDARDS THAT IS CAUSED BY LESSEE, ITS OFFICERS, AGENTS, SERYANTS, EMPLOYEES, CONTRACTORS, SUBCONTRACTORS OR INVITEES. 6. CONSTRUCTION AND IMPROVEMENTS. 6.1 Discretionary Improvements. Lessee may, at its sole discretion, perfozm modifications, renovatians or improvements on the Premises. However, Lessee may not initiate any kind af inodification, renovation or improvement on or to the Premises unless it first submits all plans, specifications and estimates for the costs of the proposed work in wziting and also Unimproved Ground Lease Agreement Don E. Hansen Hangar 9S Page 5 requests and receives in writing approval from the Airport Systems Director or his or her authorized designee. Lessee covenants and agrees that it shall fully comply with all provisions of Section 6 of this Lease in the performance of any such discretionary inodifications, renovations or improveinents. 6.2. Process far AAproval of Plans. Lessee's plans for construction and iinprovements shall conform with the Airport's architectural standards and must also receive written approval from the City's Departments of Development and Transportation and Public Works. All work shall conforizi to aIl federal, state and local laws, ordinances, rules and regulations in force at the time that the plans are presented for review. b.3. Documents. Lessee shall supply the Aitport Systems Directar or his or her authorized designee with comprehensive sets af documentation relative to any modification, renovation, canstruction or improvement, mcluding, at a mirri,mum, as-built drawings of each project within sixty (60) days after completion of construction. As-built drawings shall be new drawings or redline changes to drawings previously provided to the Airport Systems Director or his or her authorized designee. Lessee shall supply the textual documentation in computer format as reyuested by Lessor. 6.4. Bonds Required of Lessee. Prior ta the commencement of any mandatozy or discretionary modification, renavation, improvement or new construction, Lessee shall deliver to Lessor a bond, executed by a cozporate surety in accordance with Texas Govezzy.�ment Code, Chapter 2253, as amended, in the full amount of each construction contract or project. The bonds shall guairantee (i} satisfactory compliance by Lessee with all requirements, terms and conditions o� this Lease, excluding rental payrnents, including, but nat limited to, the satisfactory completion of the respective inodifications, renovatians, construction projects ar improveinents, and (ii} full payrnents to all persons, firms, cozporations or other entities with wham Lessee has a direct relationship %r the performance of such modifications, renovations, construction projects or impravements. In lieu of the required bond, and excluding rental payments, Lessee may provide Lessar with a cash deposit or an assignn�ent of a certificate o� deposit in an amount equal to 125% of the full amount of each construction contract or praject. If Lessee makes a cash deposit, Lessee shall nat be entitled to any interest earned thereon. Certificates of deposit shall be fram a financial institution in tl�e Dallas-Fort Worth Metrapolitan Area which is insured by the Federal Deposit Insurance Corporation and acceptable to Lessor. The interest earned on the certificate oi deposit shall be the property o� Lessee and Lessor shall have no rights in such interest. If Lessee fails to complete the respective madificatians, renovations, construction projects or improvements, ar i� claims are filed Unimproved Ground Lease Agreement Don �. Hansen Hangar 9S Page 6 by third parties on grounds relating to such modifications, renovations, canstruction projects or improveinents, Lessor shall be entitled to dravv down the full ainount of Lessee's cash deposit or certificate of deposit. 6.5. Bonds ReQuired of Lessee's Contrac#ors. Prior to the commenceinent of any modification, renovation, improvement or new constnaction, Lessee's respective contractor shall execute and deliver to Lessee surety performa.nce and payment bonds in accordance with the Texas Governnnent Code, Chapter 2253, as amended, to cover the costs of all work performed under such contractor's contract for such modifications, renovations, improvements or new construction. Lessee shall provide Lessor with copies of such bonds priar to the cominencement of such modifications, renovations, iznprovements or new construction. The bonds shall guara.ntee (i) the faithful performance and completion of all construction work in accordance with the final plans and specifications as approved by the City and (ii) fiill payment for all wages for labor and services and of all bills for materials, supplies and equipznent used in the performance of the construction contract. Such bonds shall name both Lessor and Lessee as dual obligees. If Lessee serves as its own contractor, Section 6.5 shall apply. 6.6. Releases bv Lessor Upon ComUletion of Construction Work. Lessar 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. 7. USE OF PREMISES. Lessee l�ereby agrees to use the Premises solely for aviation-related purposes only. Lessee is hereby prohibited from the provision, without limitation, oi the following concessions: ground transportation for rent or hire, including taxi and limousine services; food sales; barber and valet services; alcoholic beverage sales; sales of pilot supplies; newsstands; and gift and other retail shops. However, Lessee may install and operate vending machines on the Premises for use by Lessee and its employees. S. SIGNS . Lessee may, at its sole expense and with the prior written approval of the Airport Systems Director or his or her authorized designee, install and maintain signs on the Premises related to Lessee's business operations. Such signs, however, must be in keeping with tl�e size, color, location and manner of display of other signs at the Airport. Lessee shall maintain all signs in a sa%, neat, sightly and physically good condition. Unimproved Ground Lease Agreement Don E. Hansen Hangar 9S Page 7 9. RIGHTS AND RESERVATIONS OF LESSOR. Lessor hereby retains the following rights and reservations: 9.1. 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 pezmitting 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 diininish the capability of existing or fiiture avigational or navigational aids used at the Airport. 9.2. Lessor reserves the right to temporarily close the Airport or any of its facilities for maintenance, iinprovements, safety or security of either the Airport or the public, or for any other cause deemed necessary by Lessor. Except in the event of an emergency, Lessor will provide Lessee written notice of any planned closing of the Airport at least forty-eight (48} hours in advance thereof. In any event of closing, whether planned or for an emergency, Lessor shall m no way be Iiable for any damages asserted by Lessee, including, but not limited to, damages from an alleged disruption of Lessee's business operations. 9.3. This Lease shall be subardinate to the provisions of any existing or future agreement between Lessor and the United States Goveminent which relates to the operation or maintenance of the Airport and is required as a condition for the expenditure of federal funds far the development, maintenance or repair of Airport infrastructure. 9.4. During any war or national emergency, Lessor shall have the right to lease any part of the Aizport, 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 Iiable 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. 9.5. 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. 9.6. Lessee's rights hereunder shall be subject to all existing and future utility and drainage easements and rights-of-way granted by Lessor far the installation, maintenance, inspection, repair or removal of facilities owned or operated by electric, gas, water, sewer, coznmunication or other utility cpmpanies: Lessee's rights shall additionally be subject to aIl rights granted by any ordinance or statute which allows utility companies to use publicly-owned property for the provision of utility services. Unimproved Ground Lease Agreement Don E. Hansen Hangar 95 P age 8 10. INSURANCE. 10.1. Tvpes of Covera�e and Limits. Lessee shall procure and maintain at all times, in full force and effect, a policy or policies of insurance as specified in Seciion 10 of ihis Lease, naming the City of Fort Worth as an additional insured and covering all risks related to the leasing, use, occupancy, maintenance, existence or location of the Premises. Lessee shall obtain the following insurance coverage at the limiis specified herein: • Pro er : Fire and Extended Coverage on all improvements at full replacement cost limit; • Commercial General Liabilitv: $1,000,000 per occurrence, including products and completed operations; • Automobile Liabilitv: $1,000,000 per accident, including, but not limited to, coverage on any aufomobile used in Lessee's operations on the Premises; In addition, Lessee shall be responsible for all insurance to construction, iinprovements, modifications or renovations to the Premises and for personal property of its own or in its care, custody or control. 10.2. Adi�stments to Required Covera�e and Limits. Insurance requireinents, including additional types of coverage and increased limits on existing coverages, are subject to change at Lessor's option when necessary to cover Lessee's operations at the Aizport. Lessee will accordingly comply with such new requireinenis within thirty (30) days follawing notice to Lessee. Such notice ta Lessee shall provide reasonable evidence of the necessity for such new insurance requirements. 10.3. Ceriificates. As a condition precedent to the effectiveness of this Lease, Lessee shall furnish Lessar with appropriate certif cates of insurance signed by the respective insurance comparries 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 af any insurance policy required hereunder, it shall provide Lessor with a new or renewal certificate of insurance. In addition, Lessee shall, at Lessar's request, provide Lessor with evidence that it has maintained such coverage in full force and e�£ect. Unimproved Ground Lease Agreement Don E. Hansen Hangar 9 S Page 9 10.4. Additional Requirements. Lessee shall maintain its insurance with undervvriters authorized to do business in the State of Texas. The policy or policies of insurance shall be endorsed to cover all of Lessee's operations at the Airport and to provide that no inaterial changes in coverage, including, but not limited to, cancellation, termination, non-renewal or amenc�nent, shall be made without thirty (30) days' prior written notice to Lessor. ��. INDEPENDENT CONTRACTOR. It is e�pressly understood and agreed that Lessee shall operaie as an independent contracior as to all rights and privileges granted herein, and nat 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, contractars, subcontractors, licensees and invitees. Lessee acknowledges thai the doctrine pf respondeat superzor shall not apply as between Lessar and Lessee, its officers, agents, ernployees, contractors and subcontractars. Lessee further agrees that nothmg herein shall be construed as the creation of a partnership ar joint enterprise between Lessor and Lessee. 12. INDEMN�FICATION. LESSEE SHALL BE LIABLE AND RESPONSIBLE FOR ANY CLAIMS, DEMANDS, LAWSUITS OR OTHER ACTIONS FOR DAMAGES OF ANY 1�'IND, INCL UDING, BUT NOT LIMITED TO, PROPERTY LOSS, PROPERTY DAMAGE A1VD OR PERSONAL INJURY OF A1VY gI1VD OR CHARACTER, INCL UDING DEATH, WHETHER REA� OR ASSERTED, ARISING OUT OF OR IN CONNECTION WITH ITS USE OF OR OPERATIONS ON THE PREMISES UNDER THIS LEASE, EXCEPT TO THE EXTENT CA USED BY THE GROSS NEGLIGENCE OR INTENTIONAL MISCONDUCT OFLES.SOR, ITS OFFICERS, AGENTS, SERVANTS OR EMPLOYEES. LESSEE, AT LESSEE'S OWN E�PENSE, .SHALL INDEMNIFY, DEFEND AND HOLD HARMLESS LESSOR, ITS OFFICERS, AGENTS, SERVANTS AND OR EMPLOYEES, FROMAND AGAINST ANY CLAIM, LAWSUIT OR OTHER ACTION FOR DAMAGES OF A1VY 1�1ND OR CHARACTER, INCLUDING, BUT NOT LIMITED TO, PROPERTY DAMAGE OR LOSS (INCLUDING ALLEGED DAMAGE OR LOSS TO LESSEE'S BUSINESS AND ANY RESULTING LOST PROFITS) AND OR PERSONAL INJURY, INCLUDING DEATH, WHETHER REAL OR ASSERTED, ARISING OUT OF OR IN CONNECTION WITH THE USE, LEASING, MAINTENANCE, OCCUPANCY, EXISTENCE OR LOCATION OF THE PREMISES OR ANY IMPROVEMENTS THEREON, EXCEPT TO THE EXTENT CAUSED BY THE GROSS NEGLIGENCE OR INTENTIONAL MISCOND UCT OF LESSOR, ITS OFFICERS, A GENTS, SERVANTS OR EMPLOYEES. LESSEE ASS UMES ALL RESPONSIBILITY AND A GREES TO PA Y LESSOR FOR ANY AND ALL INJURIES OR DAMAGES TO AIRPORT PROPERTY, THE PREMISES OR ANY IMPROVEMENTS THEREON WHICH ARISE OUT OF OR IN CONNECTION Unimproved Ground Lease Agreement Don E. Hansen Hangar 9S Page 1Q 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 GROSS NEGLIGENCE OR IIVTENTIONAL MISCONDUCT OF LESSOR, ITS SERVANTS, AGENTS OR EMPLOYEES. LESSOR DOES NOT GUARANTEE POLICE PROTECTION TO LESSEE OR ITS PROPERTY. LESSOR IS OBLIGATED ONLY TO PROVIDE SECURITYADEQUATE TO MAIIVTAIN LESSOR'S CERTIFICATION U1''►�DER FAA REGULATIONS. LESSEE SHALL COMPLY WfTH ALL APPLICABLE REGULATIONS OF THE F,4A RELATING TO AIRPORT SECURITY ON THE PREMISES WXICH IS RELATED TO LESSEE'S OPERATIONS THEREON AND SHALL COOPERATE WITH LESSOR IN THE IMPLEMENTATION AND ENFORCEMENT QF LESSOR'S SECURITY PLAN AT THE AIRPORT. LESSEE SHALL PAY ALL FINES IMPOSED BY THE F,�A ON LESSOR OR LESSEE RESULTING FROM LESSEE'S FAILURE TO COMPLY WITH SUCH FAA REGULATIONS OR TO PREVENT UNAUTHORIZED PERSONS OR PARTIES FROM THEIR OBTAIIVING ACCESS TO THE AIR OPERATIONS AREA OF THE AIRPORT FROM THE PREMISES. 13. TERMINATION. In addition to tennination rights contained elsevvhere in this Lease, Lessor shall have the right to tenninate this Lease as follavvs: 13.1. Failure bv Lessee to Pav Rent, Fees or Other Char�es. 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 thirty (30) calendar days. If Lessee fails to pay the balazice outsianding within such time, Lessor shall have the right to terminate this Lease immediately. 13.2. Breach or Default bv Lessee. If Lessee comrnits any breach or default, other than Lessee's failure to pay rent, Lessor shall deliver vvritten notice to Lessee specifying the nature of such breach or default. Lessee shall have thirty (30) calendar days following such written noiice to cure, commence to cure, adjust or correct the problem to the siandard existing prior to the breach, and shall continue said efforts in a conscientious manner until said default is cured. If Lessee fails to cure, or undertake to cure, the breach or default within such time period, Lessor shall have the right to iernninate this Lease immed'zately 13.3 Lessee's Financial Obli�ations to Lessor unan Termination, Breach or Default. If Lessor tenninaies this Lease for any non-payment af rent, fees or ather charges or for any breach or default as provided in Sectians 13.1 or 13.2 of this Lease, then Unimproved Ground Lease Agreement Don E. Hansen Hangar 9S Page 11 subject to offsets for rents received by Lessor subsequent to the breach, 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 1'rernises by Lessor be construed as an election by Lessor to forfeit any of its nigllts under this Lease. 13.4 R�i�hts af Lessor Upon Termination or Expiration. Upon termination or expiration of this Lease, title to all improvements on the 1'remises and all fixtures and other itezns attached to any structure on the Preinises shall pass to Lessor. In addition, all rights, powers and privileges granted to Lessee hereunder shall cease and Lessee shall vacate the Prenaises. Within twenty (20) days following the effective date of termination or expiration, Lessee shall remove from the Preznises all trade fixtures, tools, machinery, equipment, rnatenials and supplies placed on the Premises by Lessee gursuant to this Lease. After such tirr�e, Lessor shall have the right to take full gossession of the Premises, by force ii necessary, and to remove any and all parties and property remaining on any part oi 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 oi its right to terminate or Lessor's exercise of any rights granted hereunder. 14. N4T�CES. Notices required pursuant to the provisions of this Lease shall be conclusively determined to have been delivered when (1) hand-delivered to the other party, its agents, employees, servants or representatives, or (2) deposited in the United States Mail, postage prepaid, addressed as follows: To LESS4R: City Of Fort Worth Aviation Department 4201 North Main Street, Suite 200 Fort Worth, Texas 76106 ].5. ASSIGNMENT AND SUSLETTING. 15.1.. In General. To LESSEE: Don E. Hansen 4201 North Main Street, Suite 119 Fort Worth, Texas 76106 Lessee shall have the night to sublease all or portions of the Premises as provided by and in accordance with Section 7 of this Lease. Otherwise, Lessee shall not assign, sell, convey, sublease or transfez the entirety of its rights, privileges, duties or interests granted by this Lease without the advance written consent of Lessor. Unimproved Ground Lease Agreement Don E. Hansen Hangar 95 Page 12 ].5.2. Conditions of Approved Assignments and Subleases. If Lessor consents to any assign�ment or sublease, all terms, covenants and agreeznents set forth in this Lease shall apply to the assignee or sublessee, and such assignee oz sublessee shall be bound by the tenns and conditions of this Lease fhe 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. 1.6. LYENS BY LESSEE. Lessee ackn.owledges tk�at 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 oz 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 suc� purported lien shall constitute a breach of this Lease and Lessor znay 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. 17. TAXES AND ASSESSMENTS. Lessee agrees to pay any and all federal, state oz local taxes or assessments which may lawfully be levied against Lessee due to Lessee's use or occupancy of the Premises or any irnproveinents or property placed on the Premises by Lessee as a result of its occupancy. ].8. COMPLIANCE WYTH LAWS, ORDINANCES, RULES AND REGULATYONS. Lessee covenants and agrees that it shall not engage in any unlawful use of the 1'remises. Lessee further agrees that it shall not permit its officers, agents, servants, employees, contzactors, subcontractors, patrons, licensees or invitees to engage in any unlawful use of the Premises and Lessee irr►inediately shall re�move from the 1'reinises any person engaging in such unlawful activities. Unlawful use of the Preznises by Lessee itself shall constitute an iminediate breach of this Lease. 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 Airpon Systems Director; and aIl rules and zegulations adopted by tt�.e 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 arnended or adopted. If Lessor notifies Lessee or any of its officers, agents, eznployees, contractors, subcontractozs, licensees oz invitees of any violation of such laws, ordiz�ances, 7rules or regulations, Lessee shall iznmediately desist from and correct the violation. 19. NQN�DYSCRIMINATIQN COVENANT. Unimproved Ground Lease Agreement Don �. Hansen Hangar 9S Page 13 Lessee, for itself, its personal representatives, successors in interest and assigns, as part af the consideration herein, agrees as a covenant running wiih the land that no person shall be excluded from participation in or denied the benefits af 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 const�ructian of any im.provements or alterations to the Premises on grounds af race, color, natianal origin, religion, disability, sex, sexual orientation, transgender, gender identity, or gender expression. Lessee agrees to furnish its accornmodations and to price its goods and services on a fair and equal basis to all persans. 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, Nan-Discrimination in Federally Assisted Programs of the Department af Transportation and with any amendinents to this regulatian which may hereafter be enacted. If any claim. arises from. an alleged wialation of this non-discrim.ination covenant by Lessee, its personal representatiwes, successors in interest or assigns, Lessee agrees to indemnify Lessor and hold Lessor hanmless. 20. LICENSES AND PERMITS. Lessee shall, at its sole expense, obtain and keep in effect all licenses and permits necessary for the aperation of its operations at the Airpart. 21. GOVERNMENTAL POWERS. It is understood and agreed that by execution of this Lease, Lessor daes not waive or surrender any of its governrnental powers. 22. NO WAIVER. The failure of Lessor to insist upan the performance of any term or provision of this Lease or to exercise any right granted herein shall not constitute a waiver of Lessar's right to insist upon appropriate performance or to assert any such right on any future accasion. 23. VENUE AND JURTSDICTZON. 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 actian 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 ihe laws of the State of Texas. 24. ATTORNEYS' F'EES. Unimproved Ground Lease Agreement Don E. Hansen Hangar 9S Page 14 In. the event there should be a breach or deiault under any provision of this Lease and either party should retain attorneys or incur other expenses for the collection oi rent, %es or charges, ar the enforcement of performance or observances oi any covenant, obligation or agreement, Lessor and Lessee agree that each party shall be responsible for its own attorneys fees, and the prevailing party shall not be entitled to recover attorneys' %es. 25. SEVERABILITY. If any provision of this Lease shall be held to be invalid, illegal or unen%rceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired. 26. FORCE MAJEURE. Lessor and Lessee shall exercise every reasonable effort to meet their respective obligations as set %rth in this Lease, but shall not be held Iiable for any delay in or omission. of perfonnance due to force majeure or other causes beyond their reasonable control, including, but not limited to, compliance with any governmen.t law, ordinance or regulation, acts oi God, acts of omission, fires, strikes, lockouts, national disasters, wars, riots, material or Iabor restrictions, transportation problems and/or any other cause beyond the reason.able control oi Lessor or Lessee. 27. HEADINGS NOT COFdTROLLING. Headings and titles used in this Lease are for reference purposes only and shall not be deemed a part of this Lease. 28. 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 agreeinent is hereby declared null and void to the extent in conflict with any pzovisions of this Lease. The terms and conditions of this Lease shall not be arrzended unless agreed to in writing by boih parties and appraved by the City Council of Lessor. Execution of this Lease hereby tenninates CSC Nos, 8938, 9123, 17327, 18968 and 282b2. [Signature Pages Follow] Unimproved Ground Lease Agreement Don E. Hansen Hangar 9S Page 15 IN WITNESS "'HEREOF, the parties hereto have e xecuted this Lease in multiples, this \J� day of ,).(n,,.,.Js&"-, 2010. CITY OF FORT WORTH: By: � '" ,Q Fernando Costa Assistant City Manager Date: STATE OF TEXAS § COUNTY OF TARRANT § r 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 City of Fort Worth, and th at he executed the same as the act of 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 /..5-ti.aay of /JI'� 2010. ROSELLA BARNES 1111 COt.\l,\ISSION EXPIRES Man:1131,2013 APPROVED AS TO FORM AND LEGALITY: By: �� Charlene Sanders Assistant City Attorney Date: " / / / fl If O M&C: C-21287; Approved 2/14/06 Unimproved Ground Lease Agreement Don E. Hansen Hangar 9S Page 16 Notary Public in and for the State of Texas ATTEST: By:U\u��Marty Hendrix City Secretary Date: LESSEE: DONE. HAc"!SEN I;/ By: ��---Don E. Haftsen Individual Date: I 1 /Io / pf' I ····-/ 7 STATE OF TEXAS § COUNTY OF TARRANT § ATTEST: By: -----------Name: BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared Don E. Hansen, 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 Don E. Hansen, and that he executed the same as the act of Don E. Hansen, for the purposes and consideration therein expressed and in the capacity therein stated. 2010. GIVEN UNDER MYHAND AND SEAL OF OFFICE this /6 day of J//Jdetnbe r, Unimproved Ground Lease Agreement Don E. Hansen Hangar 9S Page 17 Exhibit "A" Lease Site lOS• A parcel of land out of Block 2, Meachaxn A.irport Addition, accordina to plat thereof recorded in Cabinet � Slide 2445, of the Plat Records of Tarrant County, Texas, and being more particularly described as follo�ws to wit; BEGINNING at a mark "�' foixnd in concrete for the northr�vest carner of the herein described lease site, sai�d "X" having NAD '83, Texas Coordinate System, North Central Zone, coordinates of N= 6,981,785.b8, and E= 2,320,444.54, and from which a brass disc, City of �'ort Worth Monument Number 9900, bears North 78 degrees 08 minutes 49 seconds West, 0.25 feet; TI�NCE: South 80 degrees 43 minutes 27 seconds East, 320.77 feet to a"P-K" nail set with a aluminum washer marked "C_F.W. SURVEY" for the northeast corner of the herein described lease site; T'I�NCE: South 00 degrees OS minutes 49 seconds East, 279.80 feet to a City of Fort Worth brass monument starnped #0803 set in place of a mark "X" found in concrete for the southeast corner of the herein described lease site; THENCE: South 89 degrees 53 minutes 41 seconds West, 180.17 feet to a City of �'ort Worth brass rnonument stamped #0802 set in place of a rraark "X" found in concrete; T'I�NCE: South 47 degrees 46 r�nutes 31 seconds West, 81.54 feet to a City of Fort Worth brass monument set in concrete stamped #0801 for the mast sout#i corner of the herein described lease site; THENCE: North �Z degrees 13 minutes 29 seconds West, 57.32 feet to a City of Fort Worth brass monument staznped #0807 set in place of a mark "X" found in concrete at the beginning of a curve, ha�ing a radius of 174.0 feet; THENCE: Northwesterly with said curve to the left, through a central angle of 17 degrees 58 minutes 23 seconds, a.n arc distance of 54.48 feet, to a"P-K" �ail found at its end, the long chord of said curve bears North S1 degrees 12 minutes 31 seconds West, 5�4.3b feet; THENCE: North 00 degrees 48 minutes 33 seconds West, 310.18 feet to the Place of Beginn`tng, and containing some 2.304 acres {100,352 square feet} of land, more or less. 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