HomeMy WebLinkAbout(0063) M&C 21-0799City of Fort Worth, Texas
Mayor and Council Communication
DATE: 10/12/21 M&C FILE NUMBER: M&C 21-0799
LOG NAME: 55FTW CONSENT TO LEASEHOLD DEED OF TRUST, POLLARD, HGR 9S
SUBJECT
(CD 2) Authorize the Execution of a Consent to Leasehold Deed of Trust with Legend Bank N.A. to Enable Pollard Aircraft Sales, Inc. to Finance
a Business Loan to Purchase the Leasehold Interest at Lease Site 10, Hangar 9S Located at Fort Worth Meacham International Airport
RECOMMENDATION:
It is recommended that the City Council authorize the execution of a Consent to Leasehold Deed of Trust with Legend Bank N.A. to enable Pollard
Aircraft Sales, Inc. to finance a business loan to purchase the leasehold interest at Lease Site 10, Hangar 9S located at Fort Worth Meacham
International Airport.
DISCUSSION:
On September 14, 2021, Mayor and Council Communication (M&C) 21-0684 City Council approved City Secretary Contract (CSC) 41118-CA2, a
Consent to Assignment between Sandpiper Operating, LLC, (Sandpiper) and Pollard Aircraft Sales, Inc. (Pollard) for CSC 41118, known as
Lease Site 10, Hangar 9S at Fort Worth Meacham International Airport.
Pollard has been working with their lender, Legend Bank N.A. (Legend Bank), to secure a loan to finance the purchase of the leasehold interest of
Lease Site 10, Hangar 9S, which consists of a 23,500 square foot hangar as well as 100,324.08 square feet of ground space. The initial term of
the lease commenced on November 11, 2010 and expires on May 31, 2026. In addition to the initial term, Lease 41118 provides the option to
renew upon expiration of the initial term. Renewal options allow Lessee two (2) consecutive options to renew for successive terms of five (5) years
each. The hangar is to be used for aeronautical purposes in accordance with City and Aviation Department policies. Beginning October 1, 2021,
annual revenue from the ground lease is $47,152.32.
On or about September 2, 2021, Legend Bank requested a deed of trust on its leasehold interest. The consent to leasehold deed of trust will grant
Pollard's lender, Legend Bank the right, subject to the previous lien, to operate as Lessee or secure another tenant in place of Pollard, if previously
approved by the City Council, in the event Pollard defaults on its loan or its lease with the City of Fort Worth. The lease agreement prohibits Pollard
from making any assignment of the lease or causing a lien to be made on improvements constructed on the leased premises without City Council
approval. This type of transaction is routine for airport tenants and staff has no objection to Legend Bank's request.
Fort Worth Meacham International Airport is located in COUNCIL DISTRICT 2.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendation and execution of the lease, funds will be deposited into the
Municipal Airport Fund. The Aviation Department (and Financial Management Services) is responsible for the collection and deposit of funds due
to the City.
Submitted for City Manager's Office b� Fernando Costa 6122
Originating Business Unit Head: Roger Venables 6334
Additional Information Contact: Ricardo Barcelo 5403