HomeMy WebLinkAbout(0106) M&C 21-0685City of Fort Worth, Texas
Mayor and Council Communication
DATE: 09/14/21 M&C FILE NUMBER: M&C 21-0685
LOG NAME: 55FTW HELICOPTER INSTITUTE HGR AND GRND LEASE AGRMT, HGR 12S
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 1st of any given year, based on the upward percentage change in the Consumer Price
Index for the Dallas -Fort Worth metropolitan area. At no time will the adjusted rate exceed the rate that is current in the Schedule of Rates and
Charges. Five-year rate adjustments will be applied to the ground rate starting on October 1, 2026, and every fifth year thereafter. 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.
Submitted for City Manager's Office by. Fernando Costa 6122
Originating Business Unit Head: Roger Venables 5402
Additional Information Contact: Ricardo Barcelo 5403