HomeMy WebLinkAbout(0036) M&C 19-0276City of Fort Worth, Texas
Mayor and Council Communication
DATE: 10/29/19 M&C FILE NUMBER: M&C 19-0276
LOG NAME: 21AQHA GROUND LEASE
SUBJECT
Authorize Execution of a Ground Lease Between the City of Fort Worth and the American Quarter Horse Foundation for the Purpose of
Developing, Constructing and Operating a Facility to Include a Museum to be Located at 1400 Gendy, Fort Worth, Texas 76107, Authorize a
Partial Waiver of Rent, and Find That the Partial Use of the Facility as a Museum Serves a Public Purpose (COUNCIL DISTRICT 7)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the execution of a Ground Lease between the City of Fort Worth and the American Quarter Horse Foundation for the purpose of
developing, constructing and operating a facility to be located at 1400 Gendy, Fort Worth, Texas 76107;
2. Authorize a waiver of the portion of the rent that is proportional to the square footage of the facility used for a public museum; and
3. Find that the waiver of such rent serves to carry out the public purpose of collecting, preserving, and presenting to the public objects,
materials, and information of cultural and historical significance for education and enjoyment, and that adequate controls are in place through
the Ground Lease to carry out such public purpose.
DISCUSSION:
Approval of this Mayor and Council Communication authorizes the City of Fort Worth (City) and the American Quarter Horse Foundation (Tenant)
to enter into a Ground Lease for a 50 year initial term with five 10- year automatic renewal terms on approximately 0.60 acres, more or less, of
unimproved land located at 1400 Gendy, Fort Worth, Texas, on the Will Rogers Memorial Center campus.
The American Quarter Horse Foundation will be permitted to use the property to develop, construct and operate a building to house a public
museum known as the American Quarter Horse Hall of Fame and Museum, or similar name, and to sublease of a portion of the building to the
Association for its world headquarters, and for purposes ancillary to the operation of the Building, and for no other purpose without the written
consent of the City. Tenant anticipates subleasing a portion of the Building to the Association at a fair market value rental for the purposes of
operating the Association's world headquarters.
Rent consideration will be based on fair market value, however, a percentage of the rent will be waived based on the portion of the building to be
used for a museum, based on the public purpose served of collecting, preserving, and presenting to the public objects, materials, and information
of cultural and historical significance for education and enjoyment.
The remaining rent will be fair market value with rent credits being provided based on any of the following:
Annual Events Credit
Credit of 25% of rent for each year that the AQHA Youth World Championship Show and the AQHA World Championship show are
held in Fort Worth now and during the term of the lease
- An additional 25% credit may be requested by Tenant for additional events or shows held in Fort Worth and based on a calculation
made by the Public Events Department to demonstrate the economic impact to the City of Fort Worth of a minimum of $25,000
dependent on number of attendees (in state and out of state), length of the event, number of hotel rooms booked and the cost of
facilities booked
Donation of Property to be utilized and accepted by the City on behalf of the Fort Worth Police Department Mounted Patrol or the Fort Worth
Herd
;: Eligible items include horse trailers or horses
The Tenant may construct improvements on the Leased Premises in compliance with the permitted use however the City must approve plans prior
to construction. The Tenant must achieve substantial completion of the improvements no later than 36 months from commencement of
construction. Tenant shall own the improvements, provided that upon the expiration or termination of the Lease, the improvements shall become
the property of the City.
The City will be responsible for the design of the public improvements including sanitary sewer, water, storm water infrastructure, and road
improvements.
Tenant will be responsible for securing the appropriate zoning, licenses, certificates and permits necessary for the intended use of the leased
property.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that the Public Events Department is responsible for the collection and deposit of funds associated with the lease.
Submitted for City Manager's Office by. Kevin Gunn 2015
Originating Business Unit Head: Steve Cooke 5134
Additional Information Contact: Roger Venables 6334
Jean Petr 8367