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HomeMy WebLinkAboutContract 57807 CSC No. 57807 FORT WORTH AVIATION DEPARTMENT ADMINISTRATION BUILDING OFFICE LEASE FORT WORTH MEACHAM INTERNATIONAL AIRPORT This ADMINISTRATION BUILDING OFFICE LEASE AGREEMENT ("Lease") is made and entered into by and between the CITY OF FORT WORTH ("Lessor"), a home rule municipal corporation under the State of Texas, acting by and through Dana Burghdoff, its duly authorized Assistant City Manager, and ITI ENGINEERING, LLC ("Lessee"), a Delaware Limited Liability Company, acting by and through KEVIN LEBEAU, its duly authorized VICE PRESIDENT. RECITALS WHEREAS, on or about September 17, 2019,Irvin Technologies, Inc. entered into City Secretary("CSC")No. 52820 ("Previous Lease"), an Administration Building Office Lease for shell office space known as Suite 320, Third Level consisting of 1,137 square feet of Office Space with an additional 204 square feet of Balcony Space; and WHEREAS,the Previous Lease contained an Initial Term commencing on September 15,2019 for three(3) years,with three (3) options to renew at one(1)year each; and WHEREAS,the Initial Term of the Previous Lease included Tenant Improvement Period, a one-time incentive for the cost of the finish out expenses with a rent-abatement for the Initial Term not to exceed 50%of the monthly rent for the Office Space only, (excluding the balcony); and WHEREAS, on March 8, 2022, Lessee informed Lessor that Irvin Technologies, Inc. had been acquired by a larger parent company and that their operations were now being conducted under a new entity, ITI Engineering,LLC.; and WHEREAS,Lessor and Lessee now wish to enter into a new Administration Office Building Lease with ITI Engineering,LLC and terminate the existing lease with Irvin Technologies, Inc. to correctly reflect the new entity that will be leasing Suite 320 in the Administration Building at Fort Worth Meacham International Airport. AGREEMENT In consideration of the mutual covenants, promises and obligations contained herein, the parties agree as follows: 1. TERMINATION OF PREVIOUS LEASE. The Previous Lease with Irvin Technologies,under CSC 52820 is hereby terminated in its entirety and replaced herewith by this Lease, with such termination to be effective upon execution of this Agreement by both parties. OFFICIAL RECORD CITY SECRETARY Fort Worth Meacham International Airport Administration Building Office Lease Agreement FT. WORTH, TX ITI Engineering,LLC.—Suite 320 Page 1 of 17 2. PROPERTY LEASED. Lessor demises and leases to Lessee the following real property(hereinafter referred to as "Premises") in the Administration Building ("Admin Building") at Fort Worth Meacham International Airport("Airport") in Fort Worth, Tarrant County, Texas: 1,137 square feet of office space ("Office Space") and 204 square feet of balcony space ("Balcony Space") for a total of 1,341 square feet,together identified as Suite 320,Third Level, depicted on Exhibit "A", attached hereto and hereby made a part of this Lease for all purposes. 3. TERM OF LEASE. 3.1 Initial Term The Initial Term of this Lease shall commence on the date of execution ("Effective Date")and expire at 11:59 PM three(3)years following the Effective Date. In order to terminate this Agreement,for any cause stated herein,a party must provide the other party with written notice of its intent to terminate not less than thirty(30) days prior to the effective date of such termination. 3.2 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 three consecutive options to renew this Lease,each option for an additional successive term of one year each(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 within the time frame provided herein,Lessee shall no longer have any rights or interest in the Premises following the expiration of the Initial Term and will have no rights to any Renewal Terms thereafter. 3.3 Holdover. If Lessee holds over after the expiration of the Initial Term 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 rate will be adjusted to equal the then Fair Market Value, as determined by Lessor's market analysis. In no case shall the rate be less than the value assessed upon completion of a property appraisal completed by a third-party 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 Fort Worth Meacham International Airport Administration Building Office Lease Agreement ITI Engineering,LLC.—Suite 320 Page 2 of 17 4. RENT. 4.1. Rates and Adiustments. From the Effective Date through September 30,2022 In recognition of the initial Office Space base finish-out costs by Lessee of the Office Space, Lessee shall pay Lessor monthly installments of $1,190.98 for an annual rental rate of$14,291.76(Fourteen Thousand,Two Hundred Ninety-One and 76/100 Dollars). Rental rates during this period are based on fifty percent (50%)of$18.50 per square foot for the Office Space(1,137 square feet) and$18.50 per square foot for the Balcony Space (204 square feet). Be iginniniz October 1,2022 Lessee shall pay Lessor rent for Suite 320, Third Level (1,341 square feet) based on a rental rate of $18.50 per square foot which will be payable in monthly installments of $2,067.38 (rounded), for an annual rental rate of $24,808.56 (Twenty-Four Thousand Eight Hundred Eight and 56/100 dollars). On October 1, 2023, and on October 1st of each year thereafter in which this Lease is still in effect, Lessee's rental rate shall be adjusted to comply with the rates prescribed for the Premises by Lessor's Schedule of Rates and Charges in effect at the respective time. In no event shall Lessee's monthly rental rate exceed the then- current rates prescribed by Lessor's published 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. 4.2. Payment Dates and Late Fees. Monthly rent payments under this Lease are due on or before the first (lst) day of each month. Payments must be received during normal working hours by the due date at the location for Lessor's Revenue Office as set forth in Section 17. Rent shall be considered past due if Lessor has not received full payment on or before the 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%) each month on the entire balance of any overdue rent that Lessee may accrue. 5. UTILITIES. Lessor agrees and covenants that it will pay for all utilities in use on the Premises, with the exception of telephone utilities and internet service. Lessee agrees that all electrically- operated equipment which may be used on the Premises shall fully comply with the City of Fort Worth Mechanical, Electrical, Plumbing,Fire and Building Codes, as they exist or may hereafter be amended. 6. MAINTENANCE AND REPAIRS. 6.1. Maintenance and Repairs by Lessor. Fort Worth Meacham International Airport Administration Building Office Lease Agreement rfI Engineering,LLC.—Suite 320 Page 3 of 17 Lessor shall provide janitorial services to the Premises. Lessor agrees to perform minor repairs and maintenance on a timely basis as required by the ordinary use of the Premises under the terms of this Lease and which are not caused by any violation thereof by Lessee. Lessor shall have the right and privilege, through its officers, agents, servants or employees to inspect the Premises at any time. If Lessor determines that Lessee is responsible for any maintenance or repairs required on the Premises, it shall notify Lessee in writing. Lessee agrees to undertake such maintenance or repair work within thirty (30) calendar days of receipt of notice. If Lessee fails to undertake the maintenance or repairs recommended within this time, Lessor may, in its discretion, perform the necessary maintenance or repairs on behalf of Lessee. In this event, Lessee will reimburse Lessor for the cost of the maintenance or repairs, and payment will be due on the date of Lessee's next monthly rental payment following completion of the repairs. 6.2. Maintenance and Repairs by Lessee. Lessee agrees to keep and maintain the Premises in a good, clean and sanitary condition at all times. Lessee covenants and agrees that it will not make or suffer any waste of the Premises. Lessee shall not allow any holes to be drilled or made in the brick, plaster or cement work. Lessee will not pile or store boxes, cartons, barrels or other similar items in a manner that is unsafe or unsightly. Upon termination of this Lease,Lessee agrees to return the Premises to Lessor in the same condition as originally received, subject to ordinary wear and tear consistent with normal use over time. Lessee is responsible for all damages caused by the negligence or misconduct of Lessee, its agents, servants, employees, contractors, subcontractors,patrons, licensees, invitees or. For any portion of the Premises located in the basement of the Administration Building, Lessee shall provide, at Lessee's own expense, and use covered metal receptacles for the temporary storage of all trash and garbage and arrange and pay for the sanitary transport and permanent disposal away from the Airport of all of Lessee's trash, garbage and refuse. 6.3. Inspection. Lessor,through its officers,agents,servants or employees,reserves the right to enter the Premises at any time in order to perform any and all duties or obligations which Lessor is authorized or required to do under the terms of this Lease or to perform its governmental duties under federal, state or local rules, regulations and laws (including, but not limited to, inspections under applicable Health, Mechanical, Building, Electrical, Plumbing, and Fire Codes, or other health, safety and general welfare regulations). Lessee will permit the Fire Marshal of the City of Fort Worth or his agents to make inspection of the Premises at any time,and Lessee will comply with all recommendations made to Lessee by the Fire Marshal or his agents to bring the Premises into compliance with the City of Fort Worth Fire Code and Building Code provisions regarding fire safety, as such provisions exist or may hereafter be added or amended. Lessee shall maintain in a proper condition accessible fire extinguisher of a number and type approved by Fire Underwriters for Fort Worth Meacham International Airport Administration Building Office Lease Agreement ITI Engineering,LLC.—Suite 320 Page 4 of 17 the particular hazard involved. Lessor shall provide Lessee with advance notice of inspection when reasonable under the circumstances. 7. ACCEPTANCE OF PREMISES. Lessee agrees and covenants that it has inspected the Premises and is fully advised of its own rights without reliance upon any representation made by Lessor concerning the condition of the Premises. Lessee accepts the Premises in its present condition as satisfactory for all purposes set forth in this Lease. 8. CONSTRUCTION AND IMPROVEMENTS. Lessee may not undertake or allow any party to undertake any kind of alteration, erection, improvement or other construction work on or to the Premises unless it first requests and receives in writing approval from the Airport Systems Director or authorized representative. All such approved construction work on and improvements to the Premises shall comply fully with the Americans with Disabilities Act of 1990, as amended. 9. PARKING. Lessee shall have the right to use the designated public parking areas to the extent available and in accordance with policies established by the Director of Airport Systems or authorized representative, for the parking of company vehicles and the vehicles of its employees, licensees or invitees, subject to all ordinances and regulations of the City of Fort Worth and all other applicable laws. 10. USE OF PREMISES. Lessee agrees to use the Premises exclusively for the purpose proposed to and approved by the Department of Aviation. Any proposed change to the use and activity within the lessee space must be approved by the Department of Aviation prior to the change occurring. 11. SIGNS. Lessee may, at its own expense and with the prior written approval of the Airport Systems Director or authorized representative, create, install, and maintain signage. Such signs, however, must be in keeping with the size, color, location and manner of display of other signs throughout the Administration Building. In addition, Lessee may not install a sign outside the Administration Building on Lessor's property without prior written approval by the Airport Systems Director or authorized representative as to the sign's placement, appearance, construction, and conformity with applicable City Code restrictions. The Meacham Administration Building's location sign on Main Street is part of the airport's Unified Signage Agreement. All associated signage panels must be approved and procured by the lessor. The lessee will remit payment in advance to the lessor for the sign panel cost. Lessee shall maintain all signs in a safe,neat,sightly and physically good condition. Lessee agrees to pay Lessor for any damage, injury or necessary repairs to the Premises resulting from the installation,maintenance or removal of any such sign. Lessee also agrees to Fort Worth Meacham International Airport Administration Building Office Lease Agreement ITI Engineering,LLC.—Suite 320 Page 5 of 17 remove any signs at its own expense immediately upon receipt of instructions for such removal from the Airport Systems Director or authorized representative. 12. RIGHTS AND RESERVATIONS OF LESSOR. Lessor hereby retains the following rights and reservations: 12.1. All fixtures and items permanently attached to any structure on the Premises belong to Lessor,and any additions or alterations made thereon,shall immediately become the property of Lessor. 12.2. Lessor reserves the right 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 permitting 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. 12.3. Lessor reserves the right to close temporarily the Airport or any of its facilities for maintenance,improvements,safety or security of either the Airport or the public or for any other cause deemed necessary by Lessor. In this event, Lessor shall in no way be liable for any damages asserted by Lessee, including,but not limited to, damages from an alleged disruption of Lessee's business operations. 12.4. This Lease shall be subordinate to the provisions of any existing or future 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. 12.5. 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. 12.6. 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. 13. 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 Fort Worth Meacham International Airport Administration Building Office Lease Agreement ITI Engineering,LLC.—Suite 320 Page 6 of 17 location of the Premises. Lessee shall obtain the required insurance specified to be maintained by a commercial tenant in accordance with Exhibit "B", the "City of Fort Worth Aviation Insurance Requirements"attached hereto and made part of this Lease for all purposes. 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. 13.1. Adiustments 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. 13.2 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. 13.3 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. 14. 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. 15. INDEMNIFICATION. LESSEE HEREB Y ASSUMES ALL LIABILITY AND RESPONSIBILITY FOR PROPERTY LOSS, PROPERTY DAMAGE AND/OR PERSONAL INJURY OF ANY KIND, INCL UDING DEATH, TO ANY AND ALL PERSONS, OF ANY KIND OR CHARACTER, WHETHER REAL OR ASSERTED,ARISING OUT OF OR IN CONNECTION WITH THE USE OF THE MEACHAM AIRPORT TERMINAL BUILDING AND SURROUNDING PARKING LOTS UNDER THIS LEASE OR WITH THE LEASING,MAINTENANCE, USE, OCCUPANCY, EXISTENCE OR LOCATION OF THE PREMISES, EXCEPT TO THE Fort Worth Meacham International Airport Administration Building Office Lease Agreement ITI Engineering,LLC.—Suite 320 Page 7 of 17 EXTENT CAUSED BY THE NEGLIGENT ACTS OR OMISSIONS OR INTENTIONAL MISCONDUCT OF LESSOR. LESSEE COVENANTS AND AGREES TO, AND DOES HEREBY, INDEMNIFY, HOLD HARMLESS AND DEFEND LESSOR,ITS OFFICERS,AGENTS, SERVANTS AND EMPLOYEES, FROM AND AGAINST ANY AND ALL CLAIMS OR LAWSUITS FOR EITHER PROPERTYDAMAGE OR LOSS(INCLUDING ALLEGED DAMAGE OR LOSS TO LESSEE'S BUSINESS AND ANY RESULTING LOST PROFITS)AND/OR PERSONAL INJURY, INCLUDING DEATH, TO ANY ANDALL PERSONS, OF ANY KIND OR CHARACTER, WHETHER REAL OR ASSERTED, ARISING OUT OF OR IN CONNECTION WITH THE USE OF THE MEACHAMAIRPORT TERMINAL BUILDING AND SURROUNDING PARKING LOTS UNDER THIS LEASE OR WITH THE LEASING, MAINTENANCE, USE, OCCUPANCY, EXISTENCE OR LOCATION OF THE PREMISES, EXCEPT TO THE EXTENT CAUSED BY THE NEGLIGENT ACTS OR OMISSIONS OR INTENTIONAL MISCONDUCT OF LESSOR. LESSEE ASSUMES ALL RESPONSIBILITY AND AGREES TO PAY LESSOR FOR ANY AND ALL INJURY OR DAMAGE TO LESSOR'S PROPERTY WHICH ARISES OUT OF OR IN CONNECTION WITH ANY AND ALL ACTS OR OMISSIONS OF LESSEE, ITS OFFICERS, AGENTS, EMPLOYEES, CONTRACTORS, SUBCONTRACTORS, LICENSEES, INVITEES, OR PATRONS, EXCEPT TO THE EXTENT CAUSED BY THE NEGLIGENT ACTS OR OMISSIONS OR INTENTIONAL MISCOND UCT OF LESSOR. LESSOR DOES NOT GUARANTEE POLICE PROTECTION TO LESSEE OR ITS PROPERTY. LESSOR SHALL NOT BE RESPONSIBLE FOR INJURY TO ANY PERSON ON THE PREMISES OR FOR HARM TO ANY PROPERTY WHICH BELONGS TO LESSEE, ITS OFFICERS, AGENTS, SERVANTS, EMPLOYEES, CONTRACTORS, SUBCONTRACTORS, LICENSEES, INVITEES OR PATRONS, AND WHICH MAY BE STOLEN, DESTROYED OR IN ANY WAY DAMAGED; AND LESSEE HEREBY INDEMNIFIES AND HOLDS HARMLESS LESSOR, ITS OFFICERS, AGENTS, SERVANTS AND EMPLOYEES FROM AND AGAINST ANY AND ALL SUCH CLAIMS, EXCEPT TO THE EXTENT CAUSED BY THE NEGLIGENT ACTS OR OMISSIONS OR INTENTIONAL MISCONDUCT OF LESSOR. 16. WAIVER OF CHARITABLE IMMUNITY OR EXEMPTION. If Lessee, as a charitable association, corporation, partnership, individual enterprise or entity, claims immunity to or an exemption from liability for any kind of property damage or personal damage, injury or death, Lessee hereby expressly waives its rights to plead defensively any such immunity or exemption as against Lessor. 17. TERIVIINATION. In addition to termination rights contained elsewhere in this Lease,Lessor shall have the right to terminate this Lease as follows: 17.1. 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) Fort Worth Meacham International Airport Administration Building Office Lease Agreement ITI Engineering,LLC.—Suite 320 Page 8 of 17 calendar days. If Lessee fails to pay the balance outstanding within such time,Lessor shall have the right to terminate this Lease immediately. 17.2. 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 receipt of 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, unless such breach or default is not susceptible to cure within thirty(30)calendar days, in which event Lessee shall have such additional time to effect a cure as determined by Lessor. 17.3. 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,unless such non-use is caused by Force Majeure, as set forth in Section 27 below. 17.4. 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 16.1, 16.2 or 16.3 of this 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. 17.5. Rh!hts 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 from 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. 18. NOTICES. Notices required pursuant to the provisions of this Lease shall be conclusively determined to have been delivered when (1) hand-delivered to the other party, its agents, employees, servants or representatives, or (2) deposited in the United States Mail, postage prepaid, addressed as follows: Fort Worth Meacham International Airport Administration Building Office Lease Agreement ITI Engineering,LLC.—Suite 320 Page 9 of 17 To LESSOR: TO LESSEE: City of Fort Worth ITI Engineering, LLC Aviation Department Kevin LeBeau 201 American Concourse, Suite 330 201 American Concourse, Suite 320 Fort Worth, Texas 76106-2749 Fort Worth, TX 76106 Mail Payments to: City of Fort Worth PO Box 99005 Fort Worth, TX 76199-0005 19. ASSIGNMENT AND SUBLETTING. Lessee shall not assign, sell, convey, sublet or transfer any of its rights, privileges, duties or interests granted by this Lease without the advance written consent of Lessor. Any such transaction attempted by Lessee without prior written consent by Lessor shall be null and void. If Lessor consents to any such transaction,the respective assignee or sublessee shall consent to comply in writing with all terms and conditions set forth in this Lease the same as if that party had originally executed this Lease. 20. 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 and Lessor may terminate this Lease immediately. 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. 21. TAXES AND ASSESSMENTS. Lessee agrees to pay any and all federal, state or local taxes 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. 22. 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 from 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. Fort Worth Meacham International Airport Administration Building Office Lease Agreement ITI Engineering,LLC.—suite 320 Page 10 of 17 Lessee agrees to comply with all federal, state and local laws; all ordinances, rules and regulations of the City of Fort Worth and the City of Fort Worth Police, Fire and Health Departments; all rules and regulations established by the Airport Systems 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 shall immediately desist from and correct the violation. 22.1 Compliance with Minimum Standards and Schedule of Rates and Charges: 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 from time to time. 23. NON-DISCRIMINATION 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 age, 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 improvements or alterations to the Premises on grounds of age, 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 Regulations, Part 21, Non-Discrimination in Federally Assisted Programs of the Department of Transportation and with any amendments to this regulation 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. 24. LICENSES AND PERMITS. Lessee shall,at its sole expense,obtain and keep in effect all licenses and permits necessary for the operation of its business at the Airport. 25. GOVERNMENTAL POWERS. It is understood and agreed that by execution of this Lease,the City of Fort Worth does not waive or surrender any of its governmental powers. Fort Worth Meacham International Airport Administration Building Office Lease Agreement ITI Engineering,LLC.—Suite 320 Page 11 of 17 26. 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. 27. VENUE. Should any action, whether real or asserted, at law or in equity, arise out of the terms of this Lease or by Lessee's operations on the Premises,venue for such action shall lie in state courts 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. 28. 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. 29. 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. 30. 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 government law, ordinance or regulation, acts of God, acts of omission, fires, strikes, lockouts, national disasters, wars, riots, material or labor restrictions by any governmental authority, transportation problems and/or any other cause beyond the reasonable control of the parties. 31. 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. 32. SIGNATURE AUTHORITY. The person signing this agreement hereby warrants that he/she has the legal authority to execute this agreement on behalf of the respective party, and that such binding authority has been granted by proper order,resolution,ordinance or other authorization of the entity. Each party is fully entitled to rely on these warranties and representations in entering into this Agreement or any amendment hereto. Fort Worth Meacham International Airport Administration Building Office Lease Agreement ITI Engineering,LLC.—Suite 320 Page 12 of 17 32. 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 term of the contract. The terms "boycott Israel" and "company" shall have the meanings ascribed to those terms in Section 808.001 of the Texas Government Code. By signing this Lease,Lessee certifies thatLessee's signature provides written verification to the City that Lessee: (1) does not boycott Israel, and(2)will not boycott Israel during the term of the Lease. 33. ENTIRETY OF AGREEMENT. This written instrument, including any documents 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 in 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. [Signature Pages to Follow] Fort Worth Meacham International Airport Administration Building Office Lease Agreement ITI Engineering,LLC.—suite 320 Page 13 of 17 IN WITNESS WHEREOF,the parties hereto have executed this Agreement in multiples on this the day of 12022. CITY OF FORT WORTH: Dana � �LhZ' By:Dana Burghdoff(Ju 7,2022 21:46 CDT) Dana Burghdoff Assistant City Manager Date: Jul 7, 2022 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 Dana Burghdoff, 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 32022. Jul 8, 2022 � � Selena Ala(Jul 8,2022 09:37 CDT) Notary Public in and for the State of Texas go��4�n��� a� °FORT�0 APPROVED AS TO FORM ATTEST: 0~0° 00�� AND LEGALITY: P ° °00 °�� Tgyryr�ffe S. Goodgll Ada °O°°°°°°° *A, By: By:Jannette S.Goodall(Jul 8,2022 09:58 CDT) �l1�nEXAS4A Thomas Royce Hansen, Jannette S. Goodall Assistant City Attorney Acting City Secretary AT M&C Date: 06/28/2022 M&C No.. 220491 1295 Certification No.: 2022-859424 „YPVe SELENAALA i 4� Notary Public +(' STATE OF TEXAS NotOFFICIAL RECORD 911.1�` My Comm Exp,Mar.31,2024 CITY SECRETARY FT. WORTH, TX Fort Worth Meacham International Airport Administration Building Office Lease Agreement ITI Engineering,LLC.—Suite 320 Page 14 of 17 I Contract Compliance Manager: By signing, I acknowledge that I am the person responsible for the monitoring and administration of this contract, including ensuring all performance and reporting requirements. Bar r Goodwin Real Property Manager Bra LESSEE: ITI ENGINEERING,LLC B tom y� Kevin LeBeau Vice President Date: S--2 S — 20 7-2— STATE OF TEXAS § COUNTY OF 7'a rr Gzl)� § BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared Kevin LeBeau,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 ITI Engineering, LLC. and that he executed the same as the act of ITI Engineering, LLC. for the purposes and consideration therein expressed and,in the capacity,therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of 2022. J..`.VP..1G ANGELA E. MCKAUGHAN !iw z =Notary Public,State of Texas Nota ublic in and for the Stat f Texas "a• •'t Comm.Expires 03-28-2026 Notary ID 131507822 OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX Fort Worth Meacham International Airport Administration Building Office Lease Agreement ITI Engineering,LLC.—Suite 320 Page 15 of 17 i EXHIBIT A us wuw 340 SUITE ■ .ulo� 320 unwr ----- AVAIL A . i Saito I f41 3 $ IntWr rr us THIRD FLOOR SCALE:I/32"-V-0° TENANT SPACE Hahnfeld200 Z MEACHAM OFFICE BUILDING architects For Bailey Ave., s�76 07 ;^ a Hoffer planners Fort Worth, Texas 76107 F M i 817.921.5928 A FORT WORTH,TX Stanford interiors fax E317.302,0692 Fort Worth Meacham International Airport Administration Building Office Lease Agreement ITI Engineering,LLC.-Suite 320 Page 16 of 17 EXHIBIT B Fi�t{r Wt, i't� 14b11Nth EXHIi31T Fi -MINIMUM MSU ANCE REQUIREMENTS Clywaerclall keCISEnvown eala AlMroble Llablt'1' 70 q su-3f y H3{igarllty'E w aver' 4kCr3f1?fry Pa66Ef1gK Irc We Hltetl d.Non-cwrlead Cat_ inst�-anak Ge,1er31 Ll3oltty lJab;ltty Llabillty LS3t Iqy Vemlem)4 Road Base 099atIn(Has) Yea S_,C00'000 5,I)KCI G' S1,0010003 S 1,003930 Aircraft MaInlenatee operator aid 4lonlcsoFinEturnentMatntenance :i.{ R]0 51,U]0;]U7 $ 1, 03,R]D D eratrx-P15?on ruatt Malrwa_nartce Operator and A4110mor l'istwuentMeklttllan+.i-, SF,GD],DOD �1,Cr]L:7Lr� 1,CLr7,L+70 0 eralor-T1arbIr* NAwles or ViEt_nKner;t htafntenarue y S 1,CDG,DCn Operator (Bench g rit Onyt rntaftReriW or Flight Tratlllg 3LQlowdr-once operator 31!3DO,03G _ Lrt`pas:ser9fi mart Cnarfet DrAlrcraft "i L5,D0' o=rTmee VIW- c-il--per-oT w1,6OG`,tICO X. V $ 1;00C,DG0 #50{,DLfl KaESAngy Akwart S31es Operator ;i,i}OO,OtOr w1,U3G,']C[t'bCturet,Ce 3 1'wG,DCQ Y SID,„0{Q' abler. rcrP.01 rage operatoi 'a 55.OR],R:iC'' S`,OI7D,dQO 7 S 1,GQL`.0{4 ArUIDn-fW,,e Sole RPVrTe?5r 51]DO,U]G z 51.I}3�,+]CD ocrurenc 51{O.C47tp3ssFrget' y 250,i3OG oGTterCmyttercllAerbrl3 eat Tittta6 51,{4O,DEH3 G,0a0,t rrtn e 5 1,DD3,DDD emporaySWClaIMAM3Oan St,DOD,DOO 5.3t}G,4COrda Irerce S i,CO]= Ser4lee Opmlx Non-Cw neMal H [y 7Lesse-_- 5 1,4W XD aa Non Carnmed Frytg Clit, 51,R7,^,OOQbcx'Jr.ence 5 1,{4LS,DG0 tiLit-t,G{5iT??1:' _�Exi- �Jet:rr� F $ 1.fH)7,R7D 31,3G7,I70C :?i7D,OGGrDCEtlIeEiSeJ 5 1,i;07,R3O Non-Ccr11rt1erclal Sett-Fuetrrg zeml)-eE 551ACM a3DC,01alwcuTrence 5 254,00U, 1 90k HM93r,T-HWgJr.COMLI lly 53DD,D{t xcurrere.e 5 2.M,D3G- Hangar orw 'huir nee reCPLIlreMentb SStGiEd 113 d?tErrNn3:t3i by AV3T"DEpatrnenl ar ej';:L4&lw,:gE4T.snt Addillwa In6u7anceReG;rir reIla •LeS.WS p:v dim im-to Dre orrixy to any o0wr1'al d anj colectbe iist,rjnl a a' aka"to UN Chy +AJI polcie5 031 .r1,Uae l Viarwer c+.u"aton Ir favor CitM4 C-ty;rerllk7r+ry;AOO ivsl alro'mWe Altar,Lei4t+t +The C ty-3t r^LY1 4\'ctth 5.1311 tR r3re a5 Aodt p73 115LTed;Te1rp+0r3rr'30kn0 n1051 16o 1000e Alrpol L euee' Pr,+IL??5*hit 1154Y rp et uNcnS aY e14rY941'Q1C'A11 rn,n$nrer rlulrry Dr artier y 1I1e7 I @CtrlrR{I III"Qr C✓'OetlNO,for dent jW thl Ilritb 0 bill;cbt?r." 'cave—age pr(airrr3rt srwu j ba egwria3em to Meaverage alrnm 'Aue at:ne_rne aid coYwage per oceL eno-a firmld be egah*alail to ttr?3%*rage of the fl%urn rl Vaiie ol,Vil 3?1ctatt at one i111a un rriYt less G1an're yno4 rt ncded above Ngsl IrK1U0e'4egFgert 1r$;ucllm C,r—age 'R ani;r,Storage operator is RvAJing 6ttbleastlg sp De 1'or aircraft storage 'Orr}required for;nr*e prrrdrltlg ITI:insttucton 'Deper yis on teams of tha tease ag►eernent It'.Woe a3rtest tanW:1e-state nrrlimums wcW a Avlatlon;Mlnimum Statlderds. City of fortlYc{tlt A<<.a:ar DEpar{nett(GG'L�3'2D14} Fort Worth Meacham International Airport Administration Building Office Lease Agreement ITI Engineering,LLC.—Suite 320 Page 17 of 17 M&C Review Page I of 2 Official site of the City of Fort Worth,Texas CITY COUNCIL AGENDA FART II Create New From This M&C DATE: 6/28/2022 REFERENCE **M&C 22- LOG NAME: 55FTW ITI ENGINEERING, LLC NO.: 0491 ADMIN BLDG LEASE STE 320 CODE: C TYPE: CONSENT PUBLIC NO HEARING: SUBJECT: (CD 2) Authorize the Execution of a Three-Year Administration Building Office Lease Agreement Including Three One-Year Renewal Options with ITI Engineering, LLC for Suite 320 at Fort Worth Meacham International Airport RECOMMENDATION: It is recommended that the City Council authorize the execution of a three-year administration building office lease agreement, including three one-year renewal options, with ITI Engineering, LLC for Suite 320 located at Fort Worth Meacham International Airport. DISCUSSION: On or about September 17, 2019 City of Fort Worth (City) and Irvin Technologies, Inc (Current Lessee) entered into City Secretary Contract No. (CSC) 52820, an administration building office lease agreement (Current Lease) at Fort Worth Meacham International Airport. The Current Lease set to expire on September 30, 2022 and included three options to renew for one year each. On January 16, 2022, City received a notice of intent from the Current Lessee to exercise its option to renew the lease. On or about March 8, 2022, as the City was preparing for the renewal of the Current Lease, the City was informed by the Current Lessee that in the latter part of 2021, the Current Lessee was acquired by Shoreview Industries, LLC, (Shoreview) a Minnesota investment firm, and that Shoreview had formed a new company; ITI Engineering, LLC. (ITI Engineering) in which the Current Lessee's operations were to be under. Due to this entity change, the City and Current Lessee, through mutual agreement, desire to terminate the Current Lease and the City intends to enter into a new lease agreement with ITI Engineering, as the new tenant. The City and ITI Engineering now would like to enter into a new three (3) year lease agreement for Suite 320, consisting of approximately 1,137 square feet of office space with an additional 204 square feet of balcony space. In recognition of the initial office space base finish-out costs by Current Lessee as agreed upon in the Current Lease, from the effective date through September 30, 2022, ITI Engineering shall pay City monthly installments of$1,190.98 for an annual rental rate of $14,291.76 (Fourteen Thousand, Two Hundred Ninety-One and 76/100 Dollars). Rental rates during this period are based on fifty percent (50\%) of$18.50 per square foot for the Office Space (1,137 square feet) and $18.50 per square foot for the Balcony Space (204 square feet). Beginning October 1, 2022 ITI Engineering shall pay Lessor rent for Suite 320, Third Level (1,341 square feet) based on a rental rate of$18.50 per square foot which will be payable in monthly installments of$2,067.38 (rounded), for an annual rental rate of$24,808.56 (Twenty-Four Thousand Eight Hundred Eight and 56/100 dollars). The initial term of this new lease shall commence upon execution of the agreement (Effective Date) and expire at 11:59 PM three (3) years following the Effective Date and will include three one-year options to renew bringing the total potential lease term to six (6) years. On October 1, 2023, and on October 1st of each year thereafter in which this Lease is still in effect, Lessee's rental rate shall be adjusted to comply with the rates prescribed for the Premises by Lessor's Schedule of Rates and Charges in effect at the respective time. Fort Worth Meacham International Airport is located in COUNCIL DISTRICT 2. http://apps.cfwnet.org/council_packet/mc_review.asp?ID=30044&councildate=6/28/2022 6/30/2022 M&C Review Page 2 of 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. TO Fund Department Account Project Program Activity Budget Reference # Amount ID ID Year (Chartfield 2)_ FROM Fund Department Account Project Program Activity Budget Reference# Amount ID ID Year (Chartfield 2) Submitted for City Manager's Office by: Dana Burghdoff(8018) Originating Department Head: Roger Venables (5402) Additional Information Contact: Ricardo Barcelo (5403) ATTACHMENTS Exhibit A.pdf (Public) FID TABLE.xlsx (CFW Internal) ITI Engineering Form 1295.pdf (CFW Internal) Signature: 8c�6c Cee Email: Barbara0.Goodwin@fortworthtexas.gov http://apps.cfwnet.org/council_packet/mc_review.asp?ID=30044&councildate=6/28/2022 6/30/2022