HomeMy WebLinkAboutContract 56342 CITY SECRETARY CONTRACT NO. ,50
�y FORT WORTH MEACHAM INTERNATIONAL AIRPORT
HANGAR AND GROUND LEASE AGREEMENT
LEASE SITE 12S
This HANGAR AND GROUND LEASE AGREEMENT ("Lease") is made and entered
into by and between the CITY OF FORT WORTH ("Lessor"), a home rule municipal
corporation organized under the laws of the State of Texas and acting by and through Fernando
Costa, its duly authorized Assistant City Manager, and HELICOPTER INSTITUTE, INC.
("Lessee"), a Texas Business acting by and through RANDY ROWLES, its duly authorized
President.
In consideration of the mutual covenants, promises and obligations contained herein, the
parties agree as follows:
1. PROPERTY LEASED.
Lessor hereby demises to Lessee 9,285 square feet of ground space, with a 4,784
square foot hangar constructed, at Fort Worth Meacham International Airport ("Airport")
in Fort Worth, Tarrant County, Texas, identified as Lease Site 12S, ("Premises"), as shown
in Exhibit "A",attached hereto and hereby made a part of this Lease for all purposes.
2. TERM OF LEASE.
2.1. Initial Term.
The Initial Tenn of this Lease shall commence at 12:00 a.m. on September 15,2021
("Effective Date") and expire at 11:59 p.m. on August 31, 2031, 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 one (1) option to renew this
Lease for additional successive terms of five (5) years (each a "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 ninety (90) nor more than one hundred eighty (180)
days prior to the expiration of the term then in effect. If Lessee does not exercise its option
for a first Renewal Term withui the time frame provided herein, Lessee shall automatically
and simultaneously forfeit its second option to lease the Premises ford econ w
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Term, 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 holds over after the expiration of the Initial Tenn or any Renewal Term,
this action will create a month-to-month tenancy. In this event, for and during the holdover
period, Lessee agrees to pay all applicable rentals, fees and charges at the rates provided by
Lessor's Schedule of Rates and Charges or similarly published schedule in effect at the time
of the Holdover. The hangar rate will be adjusted to equal the then Fair Market Value, 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 vendor
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 rights
and remedies available,including but not limited to eviction.
3. Rates and Adiustments
The rental rates under this Lease are based on Lessor's current published Schedule of Rates
and Charges.Rental rates are subject to increase beginning October 1,2021, and on October
1s1 of any subsequent year during the Initial Term, to reflect any upward change 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 effective 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 for 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, Twenty-Two Thousand Seven Hundred Twenty-Four Dollars
and 00/100 ($22,724.00), at a rate of Five Dollars and 75/100 ($4.75) per
square foot, payable in equal monthly installments of One Thousand Eight
Hundred Ninety-Three Dollars and 67/100 ($1,893.67).
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, Four Thousand Three Hundred Sixty-Three
Dollars and 95/100 ($4,363.95) at a rate of Forty-Seven cents ($0.47) per
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Port worth Meacham Airport
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square foot, payable in equal monthly installments of Three Hundred Sixty-
Three Dollars and 661100 ($363.66).'
3.2. Five-Year Adjustments
In addition to the Annual Rent Adjustments, on October 1, 2026, and every fifth
(5tl') year thereafter for the remainder of the Initial Tenor(i.e, on October 1 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 Terra, a new lease 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 (Ist) day of each month.
Payments must be received during normal business hours by the due date at the
location for Lessor's Aviation Department set forth in Section 15. Rent shall be
considered past due if Lessor has not received full payment by close of business the
tenth (10th) day of the month for which payment is due. Without limiting Lessor's
termination rights as provided by this Lease,Lessor will assess a late penalty charge
of ten percent(10%)per month on the entire balance of any overdue rent that Lessee
may accrue.
4. CONSTRUCTION AND IMPROVEMENTS.
4.1 Mandatory Improvements
Lessee may not initiate any 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"). As additional security for this
Lease, Lessee covenants and agrees that it shall perform the improvements set forth
below on the Premises owned by the City of Fort Worth. The improvements
approved shall be referred to as "Mandatory Improvements", as referenced in Exhibit
441391.
4.1.1 Lessee shall commence performing the Mandatory Improvements within six
(6) months following the execution of this Lease. Improvements shall be completed
no later than one (1)year following the execution of this Lease.
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4.1.2 The Lessee shall provide a copy of the Certificate of Occupancy to the
Lessor, a complete set of Record Drawings and/or As-Built Drawings in Adobe PDF
and AutoCAD formats (if applicable), and a Summary of the total cost/value of the
Mandatory Improvements to the City before construction begins.
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 covenants 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 on 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 covenants and agrees
that Lessor shall handle any and all such plans for construction and improvement in a
manner consistent with the provisions.of Section 4.2 above.
4.4 Documents.
Lessee shall supply the Detector with comprehensive sets of documentation relative
to any Discretionary Improvement, including, at a minimum, a copy of the
Certificate of Occupancy, a complete set of Record Drawings and/or As-Built
Drawings in Adobe PDF and AutoCAD fonnats, 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 Lessor a
bond, executed by a corporate surety in accordance with Texas Government Code,
Chapter 2253, as amended, in the full amount of each construction contract or
project. The bonds shall guarantee (i) satisfactory compliance by Lessee with all
applicable requirements, terms and conditions of this Lease, including, but not
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limited to, the satisfactory completion of the respective Improvements, and (ii) fulI
payments to all persons, firms, corporations or other entities with whom Lessee has a
direct relationship for the construction of such Improvements.
In lieu of the required bond, Lessee may provide Lessor with a cash deposit or an
assignment of a certificate of deposit in an amount equal to 125%of the full amount
of each construction contract or project. If Lessee makes 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 which 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 complete the respective
Improvements, or if claims are filed by third parties. on grounds relating to such
Improvements, Lessor shall be entitled to draw down the full amount of Lessee's
cash deposit or certificate of deposit and apply the proceeds to complete the
Improvements or satisfy the claims, provided that any balance shall be remitted to
Lessee.
4.6 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 for all wages
for labor and services and of all bills for materials, supplies and equipment used in
the perrformance of the construction contract. Such bonds shall name both Lessor
and Lessee as dual obligees. If Lessee serves as its own contractor, Section 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) 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 final waivers of liens.
Any unused amounts in the cash deposit account will be refunded to Lessee upon
final completion of the construction work.
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5. USE OF PREMISES.
Lessee hereby agrees to use the Premises solely for aviation-related purposes only and
strictly in accordance with the terms and conditions of this Lease. Lessee 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 advance 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 Lease; (iii) restrict the use
of the Premises to aircraft storage or other aviation or aviation-related purposes acceptable to
Lessor; and (iv) treat users of the same or substantially similar facilities 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 Lessor
with a written annual report, in a foam acceptable to the Director that reflects Lessee's rental
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 Airport and other
obligations hereunder in a manner satisfactory to Lessor's Internal Auditor and at a location
within the City of Fort Worth. Upon Lessor's request and following reasonable advance
notice, Lessee will make such books and records available for review by Lessor during
Lessee's normal business hours. Lessor, at Lessor's sole cost and expense, shall have the
right to audit such books and records in order to ensure compliance with the terms of this
Lease and the Sponsor's Assurances made by Lessor to the Federal Aviation Administration.
7, UTILITIES.
Lessee, at Lessee's sole cost and expense, shall be responsible for the installation and use of
all utility services to all portions of the Premises and for all other related utility expenses,
including, but not limited to, deposits and expenses required for the installation of meters.
Lessee further covenants and agrees to pay all costs and expenses for any extension,
maintenance or repair of any and all utilities serving the Premises. In addition,Lessee agrees
that all utilities, air conditioning and heating equipment and other electrically-operated
equipment which may be used on the Premises shall fully comply with Lessor's Mechanical,.
Electrical, Plumbing, Building and Fire Codes ("Codes"), as they exist or may hereafter be
amended.
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8. MAINTENANCE AND REPAIRS.
8.1. Maintenance and Rcpairs by Lessee.
Lessee agrees to keep and maintain the Premises in a good, clean and sanitary
condition at all times, reasonable wear and tear expected. Lessee covenants and
agrees that it will not make or suffer any waste of the Premises. Lessee, at Lessee's
sole cost and expense,will make all repairs or replacements necessary to prevent the
deterioration in condition or value of the Premises, including, but not limited to, the
maintenance of and repairs to all hangars and other structures, doors, windows and
roofs, and all fixtures, equipment, hangar modifications and surrounding pavement
on the Premises. Lessee shall be responsible for all damages caused by Lessee, its
agents, servants, employees, contractors, subcontractors, licensees or invitces, and
Lessee agrees to fully repair all such damages at Lessee's sole cost and expense.
Lessee agrees that all improvements,trade fixtures, furnishings,equipment and other
personal property of every kind or description which may at any time be on the
Premises shall be at Lessee's sole risk or at the sole risk of those claiming under
Lessee. Lessor shall not be liable for any damage to such property or loss suffered
by Lessee's business or business operations, which may be caused by the bursting,
overflowing or leaking of sewer or steam pipes, from water from any source
whatsoever, or from any heating fixtures,plumbing fixtures,electric wires,noise, gas
or odors, or from causes of any other matter.
8.2. Compliance with ADA.
Lessee, at its sole cost and expense, agrees to keep and maintain the Premises in full
compliance at all times with the Americans with Disabilities Act of 1990, as
amended ("ADA"). In addition, Lessee agrees that all improvements it makes at the
Airport shall comply with all ADA requirements.
8.3. Inspections.
8.3.1. Lessor shall have the right and privilege, through its officers, agents, servants
or employees,to inspect the Premises. Except in the event of an emergency,
Lessor shall conduct such inspections during Lessee's ordinary business
hours and shall use its best efforts to provide Lessee at least two (2) hours'
notice prior to any inspection.
8.3.2. If Lessor determines during an inspection of the Premises that Lessee is
responsible under this Lease for any maintenance or repairs, Lessor shall
notify Lessee in writing. Lessee agrees to begin such maintenance or repair
work diligently within thirty (30) calendar days following receipt of such
notice and to then complete such maintenance or repair work within a
reasonable time, considering the nature of the work to be done. If Lessee
fails to begin the recommended maintenance or repairs within such time or
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Fort Worlli Meacham Airport
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fails to complete the maintenance or repairs within a reasonable time, Lessor
may, un its discretion, perform such maintenance or repairs on behalf of
Lessee. In this event, Lessee will reimburse Lessor for the cost of the
maintenance or repairs, and such reimbursement will be due on the date of
Lessee's next monthly rent payment following completion of the maintenance
or repairs.
8.3.3. During any inspection, Lessor may perform any obligations that Lessor is
authorized or required to perform under the terms of this Lease or pursuant to
its goverrunental duties under federal,state or local laws,rules or regulations.
8.3.4. Lessee will permit the City's Fire Marshal or his or her authorized agents to
inspect the Premises and Lessee will comply with all requirements of the Fire
Marshal or his or her authorized agents that are necessary to bring the
Premises into compliance with the City of Fort Worth Fire Code and
Building Code provisions regarding fie 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 TI-IAT IT
SHALL BE FULLY RESPONSIBLE FOR THE REMEDIATION OF ANY
VIOLATION OF ANY APPLICABLE FEDERAL, STATE OR LOCAL
ENVIRONMENTAL REGULATION OR STANDARD THAT IS CAUSED BY
LESSEE, ITS OFFICERS, AGENTS, SERVANTS, EMPLOYEES,
CONTRACTORS,SUBCONTRACTORS OR INVITEES.
9. SIGNS.
Lessee may, at its sole expense and with the prior written approval of the Director, 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:
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10.1. Lessor reserves the tight 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 pennitting to be erected any building or other
structure which, in the opinion of Lessor, would limit the usefulness of the Airport,
constitute a hazard to aircraft or diminish the capability of existing or future
avigational or navigational aids used at the Airport.
10.2 Lessor reserves the right to develop and improve the Airport as it sees fit, regardless
of the desires or view of Lessee, and without interference or hindrance by or on
behalf of Lessee. Accordingly, nothing contained in this Lease shall be construed to
obligate Lessor to relocate Lessee as a result of any such Airport developments or
improvements.
10.3 This Lease shall be subordinate to the provisions of any existing or fixture agreement
between Lessor and the United States Government, which relates to the operation or
maintenance of the Airport and is required as a condition for the expenditure of
federal funds for the development, maintenance or repair of Airport infrastructure. In
the event that any such existing or future agreement directly causes a material
restriction, impairment or interference with Lessee's primary operations on the
Premises ("Limitation")for a period of less than seven(7) calendar days,this Lease
shall continue in full force and effect. If the Limitation lasts more than seven (7)
calendar days, Lessee and Lessor shall negotiate in good faith to resolve or mitigate
the effect of the Limitation. If Lessee and Lessor are in good faith unable to resolve
or mitigate the effect of the Limitation, and the Limitation lasts between seven (7)
and one hundred eighty (180) days, then for such period (i) Lessee may suspend the
payment of any rent due hereunder, but only if Lessee first provides adequate proof
to Lessor that the Limitation has directly caused Lessee a material loss in revenue;
(ii) subject to ordinary wear and tear, Lessor shall maintain and preserve the
Premises and its improvements in the same condition as they existed on the date such
Limitation commenced; and (iii)the tern of this Lease shall be extended, at Lessee's
option, for a period equal to the duration of such Limitation. If the Limitation lasts
more than one hundred eighty (180) days, then (i) Lessor and Lessee may, but shall
not be required to,(a) further adjust the payment of rent and other fees or charges, (b)
renegotiate maintenance responsibilities and (c) extend the tenn 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 any part
of the Airport, including its landing area, to the United States Government. In this
event, any provisions of this instrument which are inconsistent with the provisions of
the lease to the Government shall be suspended. Lessor shall not be liable for any
loss or damages alleged by Lessee as a result of this action. However,nothing in this
Lease shall prevent Lessee from pursuing any rights it may have for reimbursement
from the United States Government. If any lease between Lessor and the United
States Government executed pursuant to this Section 10.4 directly causes a
Limitation for a period of less than seven(7) calendar days, this Lease shall continue
in full force and effect. If the Limitation lasts more than seven (7) calendar days,
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t
Lessee and Lessor shall negotiate in good faith to resolve or mitigate the effect of the
Limitation. if Lessee and Lessor are in good faith unable to resolve or mitigate the
effect of the Limitation, and the Limitation lasts between seven (7) and one hundred
eighty (180) days, then for such period (i) Lessee may suspend the payment of any.
rent due hereunder, but only if Lessee first provides adequate proof to Lessor that the
Limitation has directly caused Lessee a material loss in revenue; (ii) subject to
ordinary wear and tear, Lessor shall maintain and preserve the Premises and its
improvements in the same condition as they existed on the date such Limitation
commenced; and (iii)the term of this Lease shall be extended, at Lessee's option, for
a period equal to the duration of such Limitation. If the Limitation lasts more than
one hundred eighty (180) days, then (i) Lessor and Lessee may, but shall not be
required to, (a) further adjust the payment of rent and other fees or charges, (b)
renegotiate maintenance responsibilities and (c) extend the term of this Lease, or (ii)
Lessee may terminate this Lease upon thirty(30) days'written notice to Lessor.
10.5 Lessor covenants and agrees that during the term of this Lease it will operate and
maintain the Airport and its facilities as a public airport consistent with and pursuant
to the Sponsor's Assurances given by Lessor to the United States Government
through the Federal Airport Act; and Lessee agrees that this Lease and Lessee's
rights and privileges hereunder shall be subordinate to the Sponsor's Assurances.
10.6 Lessee's rights hereunder shall be subject to all existing and future utility and
drainage easements and rights-of-way granted by Lessor for the installation,
maintenance, inspection, repair or removal of facilities owned or operated by
electric,gas,water, sewer, communication or other utility companies. Lessee's rights
shall additionally be subject to all rights granted by any ordinance or statute which
allows utility companies to use publicly-owned property for the provision of utility
services.
10.7 Lessor agrees Lessee shall have the right of ingress and egress to and from the
Premises by means of roadways for automobiles and taxiways for aircraft including
access during the construction phase of airport improvements, unless otherwise
agreed to in writing by both parties. Such rights shall be consistent with the rules and
regulations with respect to the occupancy and use of airport premises as adopted
from time to time by the City of Fort Worth and by the Federal Aviation
Administration or any other state,federal or local authority.
11. INSURANCE.
Lessee shall procure and maintain at all times, in full force and effect, a policy or policies of
insurance as specified herein, naming the City of Fort Worth 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 to be
maintained by a commercial tenant in accordance with Exhibit"C",the"City of Fort Worth
Aviation Insurance Requirements" attached hereto and made part of this Lease for all
purposes.
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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.
1.1.1. Adjustments to Required Coverage and Limits.
Insurance requirements, including additional types of coverage and increased limits
on existing coverages, are subject to change at Lessor's option and as necessary to
cover Lessee's and any Sublessees' operations at the Airport. Lessee will accordingly
comply with such new requirements within thirty (30) days following notice to
Lessee.
11.2. Lessee shall procure and maintain at all times, in full force and effect, a policy 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 furnish
Lessor with appropriate certificates of insurance signed by the respective insurance
companies as proof that it has obtained the types and amounts of insurance coverage
required herein. Lessee hereby covenants and agrees that not less than thirty (30)
days prior to the expiration of any insurance policy required hereunder, it shall
provide Lessor with a new or renewal certificate of insurance. In addition, Lessee
shall, at Lessor's request, provide Lessor with evidence that it has maintained such
coverage in full force and effect.
12. INDEPENDENT CONTRACTOR.
It is expressly understood and agreed that Lessee shall operate as an independent contractor
as to all rights and privileges granted herein, and not as an agent, representative or employee
of Lessor. Lessee shall have the exclusive right to control the details of its operations and
activities on the Premises and shall be solely responsible for the acts and omissions of its
officers, agents, servants, employees, contractors, subcontractors, patrons, licensees and
invitees. Lessee acknowledges that the doctrine of respondeat superior shall not apply as
between Lessor and Lessee, its officers, agents, employees, contractors and subcontractors.
Lessee further agrees that nothing herein shall be construed as the creation of a partnership
or joint enterprise between Lessor and Lessee.
13. INDEMNIFICATION.
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 LOCATION
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OF THE PREMISES, EXCEPT TO THE EXTENT CAUSED BY 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 EMPLOYEES,
FROM AND AGAINST ANY AND ALL CLAIMS OR LAWSUITS FOR EITHER
PROPERTY DAMAGE OR LOSS, INCLUDING ALLEGED DAMAGE OR LOSS TO
LESSEE'S BUSINESS AND ANY RESULTING LOST PROFITS, AND/OR
PERSONAL INJURY,INCL UDING DEATH, TO ANY AND ALL PERSONS, OF ANY
KIND OR CHARACTER, WHETHER REAL OR ASSERTED, ARISING OUT OF OR
IN CONNECTION WITH LESSEE'S USE OF THE AIRPORT UNDER THIS LEASE
OR WITH THE USE, LEASING, MAINTENANCE, OCCUPANCY, EXISTENCE OR
LOCATION OF THE PREMISES, EXCEPT TO THE EXTENT CAUSED BY THE
GROSS NEGLIGENCE OR INTENTIONAL MISCONDUCT OF LESSOR, ITS
OFFICERS A GENTS,SERVANTS OR EMPLOYEES
LESSEE ASSUMES ALL RESPONSIBILITY AND AGREES TO PAY LESSOR FOR
ANY AND ALL INJURIES OR DAMAGES TO LESSOR'S PROPERTY WHICHARISE
OUT OF OR IN CONNECTION WITH ANY AND ALL ACTS OR OMISSIONS OF
LESSEE, ITS OFFICERS, AGENTS, EMPLOYEES, CONTRACTORS,
SUBCONTRACTORS, LICENSEES OR INVITEES, EXCEPT TO THE EXTENT
CAUSED BY THE GROSS NEGLIGENCE OR INTENTIONAL MISCONDUCT OF
LESSOR,ITS OFFICERS,AGENTS,SERVANTS OR EMPLOYEES.
LESSOR DOES NOT GUARANTEE POLICE PROTECTION TO LESSEE, ANY
SUBLESSEES OR THEIR PROPERTY. LESSOR IS OBLIGATED ONLY TO
PROVIDE SECURITY ADEQUATE TO MAINTAIN LESSOR'S CERTIFICATION
UNDER FAA REGULATIONS. LESSEE SHALL COMPLY WITHALL APPLICABLE
REGULATIONS OF THE FAA RELATING TO AIRPORT SECURITY. LESSEE
SHALL PAY ALL FINES IMPOSED BY THE FAA ON LESSOR OR LESSEE
RESULTING FROM LESSEE'S OR ANY SUBLESSEES' FAILURE TO COMPLY
WITH SUCH FAA REGULATIONS OR TO PREVENT UNAUTHORIZED PERSONS
OR PARTIES FROM OBTAINING ACCESS TO THE AIR OPERATIONS AREA OF
THE AIRPORT FROM THE PREMISES
14. TERMINATION.
In addition to termination rights contained elsewhere in this Lease, Lessor shall have the
right to terminate this Lease as follows:
Helicopter lnstitute,Inc.Hangar 12S
Hangar and Ground Lease Agreement
Fort Worth Meacham Airport
Page 12 of 23
14.1. Failure by Lessee to Pay Rent,Fees or Other Charges.
If Lessee fails to pay any rent, fees or other charges due under this Lease, Lessor
shall deliver to Lessee a written invoice and notice to pay the invoice within ten (10)
calendar days. If Lessee fails to pay the balance outstanding within such time,
Lessor shall have the right to terminate this Lease immediately.
14.2. Breach or Default by Lessee.
If Lessee commits any breach or default, other than Lessee's failure to pay rent,
Lessor shall deliver written notice to Lessee specifying the nature of such breach or
default. Lessee shall have thirty (30) calendar days following such written notice to
cure, adjust or correct the problem to the standard existing prior to the breach. If
Lessee fails to cure the breach or default within such time period, Lessor shall have
the right to terminate this Lease immediately.
14.3. Abandonment or Non-Use of the Premises.
Lessee's abandonment or non-use of the Premises for any reason for more than thirty
(30) consecutive calendar days shall constitute grounds for immediate termination of
this Lease by Lessor.
14.4. Lessee's Financial Obligations 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 of thus
Lease, Lessee shall be liable for and shall pay to Lessor all rent due Lessor for the
remainder of the term then in effect as well as all arrearages of rentals, fees and
charges payable hereunder. In no event shall a reentry onto or reletting of the
Premises by Lessor be construed as an election by Lessor to forfeit any of its rights
under this Lease.
14.5. Rights of Lessor Upon Termination or Expiration.
Upon termination or expiration of this Lease, all rights, powers and privileges
granted to Lessee hereunder shall cease and Lessee shall vacate the Premises.
Within twenty (20) days following the effective date of termination or expiration,
Lessee shall remove from the Premises all trade fixtures, tools, machinery,
equipment, materials and supplies placed on the Premises by Lessee pursuant to this
Lease. After such time, Lessor shall have the right to take full possession of the
Premises, by force if necessary, and to remove any and all parties and property
remaining on any part of the Premises. Lessee agrees that it will assert no claim of
any kind against Lessor, its agents, servants, employees or representatives, which
may stem fiom 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.
Helicopter Institute,Me.Hangar its
Hangar and Ground Lease Agreement
Fort worth Meacham Airport
Page 13 of 23
15. NOTICES.
Notices required pursuant to the provisions of this Lease shall be conclusively determined to
have been delivered when (i) hand-delivered to the other party, its agents, employees,
servants or representatives, or (ii) deposited in the United States Mail, postage prepaid,
addressed as follows:
To LESSOR: To LESSEE:
City of Fort Worth Helicopter Institute,Inc
Aviation Department 101 Aviator Drive
201 American Concourse, Suite 330 Fort Worth,TX 76179
Fort Worth,Texas 76034 (561)386-6078
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, covenants and
agreements set forth in this Lease shall apply to the assignee or sublessee, and such
assignee or sublessee shall be bound by the terms and conditions of this Lease the
same as if it had originally executed this Lease. The failure or refusal of Lessor to
approve a requested assignment or sublease shall not relieve Lessee of its obligations
hereunder,including payment of rentals,fees and charges.
17. LIENS BY LESSEE,
Lessee acknowledges that it has no authority to engage in any act or to make any contract
which may create or be the foundation for any lien upon the property or interest in the
property of Lessor. If any such purported lien is created or filed, Lessee, at its sole cost and
expense, shall liquidate and discharge the same within thirty (30) days of such creation or
filing. Lessee's failure to discharge any such purported lien shall constitute a breach of this
Lease acid Lessor may terminate this Lease upon thirty (30) days' written notice. However,
Lessee's financial obligation to Lessor to liquidate and discharge such lien shall continue in
effect following termination of this Lease and until such a time as the lien is discharged.
Helicopter Institute,Inc.Hangar I2S
Hangar and Ground Lease Agreement
Fort Worth Meacham Airporl
Page 14 of 23
18. TAXES AND ASSESSMENTS.
Lessee agrees to pay any and all federal, state or local takes 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 fiom 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.
Lessee agrees to comply with all federal, state and local laws; all ordinances, rules and
regulations of Lessor; all rules and regulations established by the Director; and all rules and
regulations adopted by the City Council pertaining to the conduct required at airports owned
and operated by the City, as such laws, ordinances, rules and regulations exist or may
hereafter be amended or adopted. If Lessor notifies Lessee or any of its officers, agents,
employees, contractors, subcontractors, licensees or invitees of any violation of such laws,
ordinances, rules or regulations, Lessee 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 Char es:
Lessee hereby agrees to comply at all times with the City's Minimum Standards, 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 fiom.time to time.
20. NON-DISCRINIINATION COVENANT.
Lessee,for itself,its personal representatives, successors in interest and assigns, as part of
the consideration herein, agrees as a covenant running with the land that no person shall be
excluded from participation in or denied the benefits of Lessee's use of the Premises on the
basis of race, color, national origin, religion, disability, sex, sexual orientation, transgender,.
gender identity or gender expression. Lessee further agrees for itself, its personal
representatives, successors in interest and assigns that no person shall be excluded from the
provision of any services on or in the construction of any imnprovements or alterations to the
Premises on grounds of race, color, national origin, religion, disability, sex, sexual
orientation,transgender,gender identity or gender expression.
Lessee agrees to furnish its accommodations and to price its goods and services on a fair and
equal basis to all persons. In addition, Lessee covenants and agrees that it will at all times
comply with any requirements imposed by or pursuant to Title 49 of the Code of Federal
Helicopter Instihite,hic.Hangar 12S
Hangar and Ground Lease Agreement
Fort Worth Meacham.Ahpori
Page 15 of 23
Regulations, Part 21,Non-Discrimination in Federally Assisted Programs, of the Department
of Transportation and with any amendments to these regulations which may hereafter be
enacted.
If any claim arises from an alleged violation of this non-discrimination covenant by Lessee,
its personal representatives, successors in interest or assigns, Lessee agrees to indemnify
Lessor and hold Lessor harmless.
21. LICENSES AND PERMITS.
Lessee shall, at its sole expense, obtain and keep in effect all licenses and permits necessary
for the operation of its operations at the Airport.
22. GOVERNMENTAL POWERS.
It is understood and agreed that by execution of this Lease, Lessor does not waive or
surrender any of its governmental powers.
23. NO WAIVER.
The failure of Lessor to insist upon the performance of any term or provision of this Lease or
to exercise any right granted herein shall not constitute a waiver of Lessor's right to insist
upon appropriate performance or to assert any such right on any future occasion.
24. VENUE AND JURISDICTION.
If any action,whether real or asserted, at law or in equity, arises on the basis of any provision
of this Lease or of Lessee's operations on the Premises,venue for such action shall lie in state
courts located in Tarrant County, Texas or the United States District Court for the Northern
District of Texas,Fort Worth Division. This Lease shall be construed in accordance with the
laws of the State of Texas.
25. ATTORNEYS' FEES.
In the event there should be a breach or default under any provision of this Lease and either
party should retain attorneys or incur other expenses for the collection of rent, fees or
charges, or the enforcement of performance or observances of any covenant, obligation or
agreement, Lessor and Lessee agree that each party shall be responsible for its own
attorneys'fees.
26. SEVERABILITY.
If any provision of this Lease shall be held to be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in any way be
affected or impaired.
Helicopter Institute,Inc.Hangar 128
Hangar and Ground Lease Agreeuieut �1
Fort Worth Meacham Airport IIIYU
Page 16 of23
27. FORCE MAJEURE.
Lessor and Lessee shall exercise every reasonable effort to meet their respective obligations
as set forth in this Lease, but shall not be held liable for any delay in or omission of
performance due to force majeure or other causes beyond their reasonable control, including,
but not limited to, compliance with any goveniment law, ordinance or regulation, 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.
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. ENTIRE TV OF AGREEMENT.
This written instrument, including any documents attached hereto or incorporated herein by
reference, contains the entire understanding and agreement between Lessor and Lessee, its
assigns and successors in interest, as to the matters contained herein. Any prior or
contemporaneous oral or written agreement is hereby declared null and void to the extent iri
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) does not
boycott Israel; and (2) will not boycott Israel during the terrn of the contract. The terms
"boycott Israel" and "company" shall have the meanings ascribed to those terms in Section
808.001 of the Texas Govenunent Code. By signing this Lease, Lessee certfflies that
Lessee's signature provides written verification to the City that Lessee: (1) does not boycott
Israel,and(2) ivttl not boycott Israel during the term of the Lease.
[Signature Pages Follow]
Helicopter Institute,Inc.Huigar 12S
Hangar and Ground Lease Agreement
Fort WorthMeadiarnAirport
Page 17 of 23
IN WITNESS WHEREOF, the parties hereto have executed this Agreement in multiples
on this the ii, .-+ day of 12021.
CITY OF FORT WORTH:
By.::]Z��
Fernando Costa
Assistant City Manager
Dater(G�aoxi
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on
this day personally appeared Fernando Costa, known to me to be the person whose name is
subscribed to the foregoing instrument, and acknowledged to me that the same was the act of the
City of Fort Worth and that he executed the same as the act of the City of Fort Worth for the
purposes and consideration therein expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this day
2021.
SELENA ALA
r= Notary Public,State of Taxes
.:
p };r comm.Expires 03-31-2024
�'%,,+�H;;•� Notary ID 132422628
otary Public in and for the State of Texas
APPROVED AS TO FORM ATTEST: -t71q ,i�t
AND LEGALI
By: By:
Thomas Royce H °en, Ronald Gonzales
Assistant City Attorney Acting City Secretary ��''
M&C: dZl •���'f
Approval Date: 91/,11;
Form 1295 Certificate#: 7
OFFICIAL RECORD
Helicopter Institute,Inc.Hangar 12S CITY SECRETARY
Hangar and Ground Lease Agreement FT. WORTH,TX
Foil wordi Meacham Airport
Page 18 of 23
Contract Compliance Manager:
By signing, I acknowledge that I am the person responsible for the monitoring and
'on of this c ntract including ensuring all performance and reporting requirements.
Real !operty Manager
Barbara Goodwin
Print Name
HELICOPTER INSTITUTE,INC.: ATTEST:
By l .C' By:
-TZandy Rowles
President
Date: 1-21
STATE OF TEXAS §
COUNTY OF�D•xy-O-4 §
BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on
this day personally appeared RANDY ROWLES, 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
HELICOPTER INSTITUTE, INC. and that s/he executed the same as the act of HELICOPTER
INSTITUTE, INC. for the purposes and consideration therein expressed and, in the capacity,
therein stated. ' }
GIVEN UNDER MY HAND AND SEAL OF OFFICE this day
US 12021.
ASHLEY THOMPSON MIKEL
s, Notary Ira ut320)36624
sA : ivam
My Commi5tion Expires
�lf�r'•� June 4. x423 Notary Public Un and for the State of Texas
OFFICIAL RECORD
Helicopter Institute,Inc.Hangar 12S CITY SECRETARY
Hangar and Ground cease Agreement
Fort Worth Meacham Airport FT WORTH,TX
Page 19 of 23
EXHIBIT A
Map of 12S
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Helicopter Institute,Inc.Hangar 12S
Y Hangar and Ground Lease Agreement
Fort Worth Meacham Airport
Page 20 of23
EXHIBIT B
MANDATORY IMPROVEMENTS
• All ]mandatory improvements for Lease Site 12S must be completed in accordance with
Section 4 of the Lease.
• Lessee shall conunence perforr ing the Mandatory Improvements within six (6) months
following the execution of this Lease. The Mandatory Improvements shall be completed no
later than one(1)year following the execution of this Lease. The Mandatory Improvements
shall include:
■ Exterior and interior paint
■ Hangar Floor Refinish
■ Replace carpet with carpet in new condition suitable for commercial foot traffic
■ Replace flooring in crows nest with subfloor material suitable for regular use and as
required for the weight it will bear.
The Mandatory Improvements must meet the standards set forth in the Aviation
Department Development Guide which will be provided to Lessee upon request.
Please submit plans prior to any upgrades to offices,bathrooms and kitchen.
Helicopter Institute,Inc.Hangar 12S
Hangar and Ground Lease Agreement
Fort Worth Meacham Airport
Page 21 of23
EXHIBIT C
F� rc 1V �
A47A111 A EXHIBIT C-MINIMUM INSURANCE REQUIREMENTS
Commercial rn
ETMTonmerbl Autoohilea.sability {To
Category Property GEneral Hangarkeegets Iglairnwit Aarra'ta rd Passenger IncLxte Hired$Non-timed
Insurance [+ability L ability Uabl%, u3bility Vehiiclees) e
Fixed Ease Oper2iare IFE*'t:f Yes $5.Cbo,00b $5,M.000 $1,000,000 5 1,O43,000
Aircrath MahkTabm Up a>,rd
Av,pni,sulnslrvmmtk0,aniehao.* .a $1O00,000 3t,000,000 $ 1,O04,000
4 -i'vo n
ArarAMoinlerar eQpefamraid
Avvfms or knAn rtw1 NUrkonarsr& .5 $ ;OOR,bOp 5 t. 0,OG0 S 1,004A00
O aicr-Turbine
dkV.0nIptorkWVueenlMtainranarraa ,b $1,{10b,Ot3tF $ 1X300D
QFualar (Bench V"k Onlyl
re all RenLd or RI&'f ra n � '" S 1,UOO DOR' S1 A�A0,000faccrtrr>enee $ 116�70 Obb
ope aw s $100,o00rpassenger
ArcraftOhviororAlrrra) s $5.(KWJ,Opllrncecrraertce
Mw%Pg+merd operates •s $1'pb0 Obl0 a5001 (passenger
Arcr-adL s,a+es OperOw 5 $1,t1D0,000 S1.4 ,00tliaaruarenoe $ 1JRRo.obb
'> Or0$1017JOOOfpassenger
•s $1.00G.000 $1.000,030
AforA.IuF,V Opeawr
`b $5,(YF'J,00b $5,000.11b0 s $ 1,lOOO,t100
At+ on Sewce3del netcrt s $1,t$OOO,D00s $1J0+l�t.D00Pocev_renee $ 0.00
$1011.0antpasserger
O%Ihw CWrMWeizAcrrnyteal I*1,ti11k7,11un $3013,Oroccurretoe
tuotlrrves
5 1,003,000
enLpa2ry SW11,7pp Aom-on �S1,O�O,bC $3W,0 loccorrence $ 1,tkOD,00p
Npn.Gorwwcal Hangs Lessee as $3000-30.roeourrance 3 1J1 4}.Q011
tian.Ganmar[af Rpg Club s $11,OOO;pppfacruTrsence $ 1OOO,t7pU
1t10 bOlu serr r
f 1C�GolMrlerr t Sd1-Fuef�g ,S $ 1.oJo,tlpp $1.000,003 $30b.o03foecurrenee, 5 lim,Obb
I. Fipal i
art-CormfiorvW Setf =uehng
errnAee a $�aOr000p $300, rtrccurrence $ 250fl00
rArw%abwe Fuel;ii�41
Bar-Hangs.1-Hung.,Comrrwrl.ry .6 3313DAMfoccuffance $
Harsgw _
130 w 'Insurance requlivnents subject to determination byAviation Depalmertt and Risl Managerr`enl
Additi wol lnursance Rer{arerneerts
4Assee S p W des are to be primapy tD oftV 00w wok W optlernibk-insuramx avalahle th the C1ty
,All pal cros shall irwa"e a Waurar o'SJxDgatwo in favor of the Giy[Temporary SASO mW also iinpiude Airp-Drt Lessee}
•Tlio 1y pf fort Wadh shaS be named ae Addiborul IMN&Od 9kirr Crary D must Wsn odudeAhViA i_eLj.ee)
-Polies shak haae rio erchrs bm by dwkin>pnment.Whi it,nel9ter nuWty or alr L*W Ow mqulrpd irm or c4vera,'te.no,lease the linft Gr ss�aw
t Coverage per airwaft shw9d!be equhra t to the average iftraft valueal one time and coverage per occurrence 4mld be rqunvlent to the average caf the
maodnzzn vaCue of total aircraft ate time,but not less than the arnwnt m ted above
3'Must include Negligent Insbuctien Cevverage
x R aacraft storage operator is pnwid'4g subCeas��space far aircraft storage
"Orgy nagti3ed for those praMi ng fljgttt 6tstruclim
Depends on terms of the lame agmeemeal
If vMide parked londside-State minimtens wculdVyly
Aviation Minimum Standards, City ce Fort Worth Aviation Depaloeent(08Ki312014)
Helicopter Institute,Inc.Hangar 12S
Hangar and Ground lease Agreement
Port Worth Meacham Airport
Page 22 of 23
DEFiNITIONS:
Coverage for the Building includes(but is not limited to)the building and structures,completed additions to covered
buildings,outdoor fixtures,permanently installed fixtures,machinery and equipment. The buiding material used to
m intain and serv'vr a the insured's premises is atso Insured. Business Personal Property owned by the insured and
used in the insured's business is covered for direct loss or damage. The coverage includes(but is not limited 1e)
furniture and fixtures,stock,improvements and betterments.leased property for which you have a contraolual
obligation to insure and several other similar business property items when not specificaly excluded from coverage.
The policy is also designed to protect the Insured against loss or damage to the Personal Property of Obefs while
in the insured's care,custody and control.
PROPERTY INSURANI
Bushess Income(sometimes called Business interruption)affords protection against the loss of earnings of a
business during the time.required to rebuild at repair covered property damaged or destroyed by fire or some other
insured cause of loss.
Extra Expense allows coverage for those additional expenses over and above normal operating expenses paid due
in damage to covered property from a covered cause of loss. These expenses could include rent,utilities,moving
expenses,telephone,advertising and labor.
This coverage protects the insured far bodily injury or property damage to ttae third parties,for which they are legally
liatr3e.The policy corers accidents oocurrng on the premises or away from the premises. Coverage is provided for
injury or damages arising taut of goods or products made or sold by the named insured. Coverage is afforded For
the named insured and ernptoyees of the named insured;however,several individuals and organizations other than
the named insured may be covered depending upon certain circurnstanoes specified in the policy_ In addition to the
91mits,the policy provides supplemental payments for attorney feeSr court costs and rather expenses associated with
a claim or the defense of a liabildy suit.
Coverage A-Bodily Injury and Property Damage lability
CGNR4EMCIAL GE—NT-RAL Bodily Injury means physical injury.sidkness or disease,including death. Property Damage means physical Injury
LIABILTrY to tangible property,including the resulting loss of use of that property_
Coverage B-Personal Injury and Advertising Injury Uali
Personal Injury means false arrest,malicious prosecution,wrongful entry or eviction,libel,slander and violations of
a psrson's right of privacy. Advertising Injury means libel;slander,disparagement,violations of a persons right of
privacy,msappropriabon and copyright infringement.
Coverage C-Medical Payments
Medical Payments means medical expenses for bodily injury caused by an taocident
IiAd�TGA1 ICLZ PERK insures the hanger operator for legal obligations to pay damages due to loss to an aircraft that ewurs when the
aircraft is in the cane,custody or control of the insured for safekeeping.storage.service or repair_Covewgge
LIABILITY extends to fabaility claims involving an aircrafl's loss of use.
Insures the pollution exposure associated with the insureds property and operations.In iludina costs ai cleanup and
remedial or corrective action due to a third party dernwid ora government order.The Pollution exclusion in general
ltabilty insurance effectively for damages for bodily injury,property damage and cleanup costs
DAPIRMENT i1ABIIUM arising from most types of pollution events.Because cf this,customized protection Tsar the pollution exposure of
numerous insureds in this category is essential_
Coverage geared specifically ua the operation of aircraft and the risks involved in aviation_Aviation insurance
policies are distinctly different from those for other areas of iransportalim7 and lend to irx orparatz aviation
AIRCRAFT-AND terminology,as well as terminology,fmit5 grid clauses speciffc,to aviation insurance. Passenger liablity protects
PASSI GER LIABILITh, passer gen ncGrtg in the ac dclent aircraft who-are injured or killed.In many c,untries this coverage 6 mandatary
only for commereW or large aircraft Coverage is often sold on a"per-seat'basis,with a specified limit for each
passengerseat
The liability coverage of the Business Auto Policy provides protection against legal iiabiltyarisin g out of the
AUTOMOBILE UARILTI7` ownership,maintenance or use of any Insured automobile. The insuring agreemerrt,agrees to pay for bodk injury
or property damage forwhlch the insured is legally responsible because of an automobile accident The policy also
NON-MWEQ"trEHLCLM states that,in addition to the payment of damages,the insurer also agrees to deferd the insured for all legal
det'anso cost_ The defense is In addition to the policy Ilmits.
An agreement between Wo parties in wNch one party agrees to waive subrogation rights against another in the
INTAI1 ER OF event of a loss. The intent is to prevent one party+s insurer From pursuing subrogation against the other party_
SPUBROGATI ON
Helicopter Institute,Inc.Hangar 12S
Hangar and Ground lease Agreement
Fort Worth Meacham Airport
Page 23 of 23
Official site of the City of Fort Worth,Texas
CITY COUNCIL AGENDA F�JR H
DATE: 9/14/2021 REFERENCE**M&C 21- LOG 55FTW HELICOPTER INSTITUTE HGR
NO.: 0685 NAME: AND GRND LEASE AGRMT, HGR 12S
CODE: C TYPE: CONSENT PUBLIC NO
HEARING:
SUBJECT. (CD 2) Authorize the Execution of a New Hangar and Ground Lease Agreement for
Approximately 9,285 Square Feet of Ground Space Including a 4,784 Square Foot
Hangar Known as Lease Site 12S with Helicopter Institute, 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 9,285 square feet of ground space, including a 4,784 square foot
hangar known as Lease Site 12S with Helicopter Institute, Inc. at Fort Worth Meacham International
Airport.
DISCUSSION:
On June 28, 2021, staff received a proposal from Helicopter Institute, Inc (Helicopter Institute) for
Hangar 12S at Fort Worth Meacham International Airport. The lease site is comprised of
approximately 9,285 square feet of ground space and includes a 4,784 square foot hangar. In
reviewing the proposal, it was determined that Helicopter Institute will provide the highest and best use
for the hangar. Helicopter Institute plans to use the facility as a maintenance and storage area for its
flight training school equipment and aircraft.
The City of Fort Worth and Helicopter Institute now wish to enter into a new hangar and ground lease
agreement that will commence on September 15, 2021 and expire on August 31, 2031. The lease will
have one option to renew for an additional five years. The lease agreement will require mandatory
improvements to the hangar consisting of new exterior and interior paint, hangar floor refinish and new
carpet.
Annual revenue generated from the hangar is approximately $22,724.00, paid in monthly installments
of approximately $1,893.67. Annual revenue from the ground space is approximately $4,363.95, paid
in monthly installments of approximately $363.66. Rates were established by an appraisal performed
by a qualified third-party appraiser and 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 1 st 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. At the end of the ten (10) year lease term, an appraisal will be 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 July 15, 2021, 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 agreement, 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.
TO
Fund ❑epartment Account Project Program Activity Budget Reference# Amount
ID 1D Year Chartfield 2
FROM
Fund Department Account Project Program Activity Budget Reference# Amount
ID I I 1D Year Chartfield 2
Submitted for City Manager's Office by, Fernando Costa (6122)
Originating Department Head: Roger Venables (5402)
Additional Information Contact: Ricardo Barcelo (5403)
ATTACHMENTS
Location Map 12S.pdf