HomeMy WebLinkAbout(0086) M&C 22-0236City of Fort Worth, Texas
Mayor and Council Communication
DATE: 03/29/22 M&C FILE NUMBER: M&C 22-0236
LOG NAME: 55FWS CONSENTASSIGNMENT GRND LEASE W3, AIR CENTER HELICOPT
SUBJECT
(CD 6) Authorize Execution of a Consent to Assignment of a Ground Lease Agreement for Lease Site W3 by Marline Aviation, LLC to Air Center
Helicopters, Inc. and a Consent to Leasehold Deed of Trust with Air Center Helicopters, Inc. and Independent Financial for the Purpose of
Financing the Purchase of the Leasehold Interest of Lease Site W3, Located at Fort Worth Spinks Airport
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the execution of a consent to assignment of a ground lease agreement for lease site W3 by Marline Aviation, LLC to Air Center
Helicopters, Inc. at Fort Worth Spinks Airport; and
2. Authorize the execution of a consent to leasehold deed of trust with Air Center Helicopters, Inc. and Independent Financial for the purpose of
financing the purchase of the leasehold interest of Lease Site W3, located at Fort Worth Spinks Airport.
DISCUSSION:
On September 13, 2016, through Mayor and Council Communication (M&C) C-27907, City Council authorized Lessor to execute an unimproved
Ground Lease Agreement and associated mandatory improvements under City Secretary Contract (CSC) 48209 with Marline Aviation, LLC
(Marline Aviation), dated September 26, 2016, for the lease and use of real property known as Lease Site W3 and any improvements and
facilities thereon, consisting of 42,992 square feet of ground space, 49,992 square feet of shared aircraft parking and 3,923 square feet of shared
access easement (Leased Premises) at Fort Worth Spinks Airport (Airport). Mandatory improvements included a 16,000 square foot hangar and
associated office space on the site.
On November 2, 2016, the Lessor and Marline Aviation entered into CSC 48209-A1 to correct a monthly rental payment calculation.
On June 13, 2017, through Mayor and Council Communication (M&C) C-28273, City Council authorized Lessor to execute a Consent to
Leasehold Deed of Trust with Marline Aviation in favor of PlainsCapital Bank to finance the construction of improvements at lease site W3. The
loan will be satisfied and the lien removed upon a sale of the leasehold interest of lease site W3 located at Fort Worth Spinks Airport.
On or about January 24, 2022, Marline Aviation notified the Aviation Department of a request for a consent to assignment of the lease to Air
Center Helicopters, Inc. (Air Center Helicopters) due to a pending sale of its leasehold interest. The mandatory improvements required under the
Lease have been completed and now include a 19,723 square foot hangar which includes office space. The lease will expire on August 31, 2046,
with two consecutive options to renew for two additional successive terms of five years each.
Annual revenue from the lease is approximately $21,866.16 payable in monthly installments of $1,822.18. 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 then current rate published in the Schedule of Rates and Charges. Five-year rate
adjustments are applied to the ground rate with the next scheduled adjustment on October 1, 2026, and every fifth year thereafter.
The Consent to Leasehold Deed of Trust will grant Air Center Helicopters' lender, Independent Financial, the right, subject to the previous lien, to
operate as Lessee or secure another tenant in place of Air Center Helicopters, if previously approved by City Council, in the event Air Center
Helicopters defaults on the loan or the lease with the City of Fort Worth. The Ground Lease Agreement prohibits Air Center Helicopters 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 Air Center Helicopters' request.
Fort Worth Spinks Airport is located in Council District 6.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendations 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 bT. Dana Burghdoff 8018
Originating Business Unit Head: Roger Venables 5402
Additional Information Contact: Ricardo Barcelo 5403