HomeMy WebLinkAboutContract 57068-A1 CSC No. 57068-Al
FIRST AMENDMENT TO
CITY SECRETARY CONTRACT NO. 57068
A LEASE AGREEMENT BETWEEN
FORT WORTH CONVENTION AND VISITOR'S BUREAU
AND
THE CITY OF FORT WORTH
This AMENDMENT NO. 1("Amendment")is made and entered into by and between THE CITY
OF FORT WORTH("Landlord'),a home rule municipal corporation organized under the laws of the State
of Texas,acting by and through Dana Burghdoff,its duly authorized Assistant City Manager,and the FORT
WORTH CONVENTION AND VISITOR'S BUREAU ("Tenant"), a domestic non-profit corporation,
acting by and through Robert Jameson,its duly authorized President&CEO.
WHEREAS, the Landlord and Tenant entered into City Secretary Contract No. 57068, an office
space and parking lease agreement for the Premises located at 1201 Throckmorton Street,Fort Worth,Texas
76102("Leased Premises")which became effective on February 1,2022("Lease");
WHEREAS, both parties agree that the Lease is currently effective with the Initial Term of the
Lease currently scheduled to commence upon the "Commencement Date" which is currently defined as
either (i) completion of construction and finish out of the Premises and issuance of a certificate of
occupancy or(ii) 180 days from the execution of the Lease,whichever occurs earlier;
WHEREAS,the Lease also indicates that if additional time is necessary beyond 180 days for the
completion of construction and finish out of the Premises, both parties can mutually agree to extend the
time allowed before the Commencement Date begins;and
WHEREAS, Tenant is diligently working to complete the finish out of the Premises and the
Landlord recognizes an additional amount of time may be necessary for the completion of such finish out;
WHEREAS,the parties,therefore,would like to amend the definition of"Commencement Date"
within the Lease to allow for an additional sixty(60)day period,for a total of two hundred and forty(240)
days,until the Initial Term would be required to begin.
NOW THEREFORE, in consideration of the covenants and agreements set forth in the Lease,
Tenant and Landlord agree to amend the Lease as follows:
1.
Article I, section"D","Commencement Date"under the Lease is hereby deleted in its entirety
and replaced with the following:
D. "Commencement Date": The earlier of (i) the date upon which a certificate of
occupancy for the Premises is issued to Tenant by all necessary governmental authorities,
including, without limitation,the City of Fort Worth,Texas, or(ii)that date which is two
hundred forty(240) days after the date of execution of this Lease. If Tenant is not able to
execute the Commencement Date Memorandum after 240 days the parties may,by mutual
written agreement,agree to extend the 240-day period.
OFFICIAL RECORD
CITY SECRETARY
FT.WORTH, TX
First Amendment to City Secretary Contract No. 57068
2.
If any terms in this Amendment are in conflict with terms under the Lease," the terms in this
Amendment shall prevail.
3.
All other terms and conditions of the Lease remain unchanged and in full force and effect.
(Signatures on Following Page)
First Amendment to City Secretary Contract No. 57068 2
This Amendment is effective as of July 27 ,2022.
LESSEE: TENANT:
City of Fort Worth,a home rule municipal FORT WORTH CONVENTION AND
Corporation of the State of Texas VISTIOR'S BUREAU,a domestic non-profit
corporation
'P By: Dana Burghdoff(Aug 4,202 4:35 CDT) By:
Dana Burghdoff Robert L. Jarn&Jn
Assistant City Manager President and CEO
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.
Peter Elliott(Jul 29,202215:26 CDT)
Peter Elliot
Parking Manager
Transportation Management Division
Transportation and Public Works Department
Approved as to Form and Legality
Thomas R.Hansen
Assistant City Attorney 4a��
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ATTEST: �o g=d
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Jannette S.Goodall(Aug 4,202214:52 CDT) 'r�T �O �
Jannette S.
City Secretary
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Form 1295: 2021-818453
M&C: 21-0859 on Nov. 9,2021
OFFICIAL RECORD
CITY SECRETARY
FT.WORTH, TX
First Amendment to City Secretary Contract No. 57068
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 11/09/21 M&C FILE NUMBER: M&C 21-0859
LOG NAME: 21 VISIT FORT WORTH LEASE AT HOUSTON STREET
SUBJECT
(CD 9)Authorize the Execution of a Lease Agreement with the Fort Worth Convention and Visitor's Bureau for Approximately 9,367 Square Feet
of Space on the West Side Ground Floor at the Fort Worth Convention Center Garage Located at 1200 Houston Street, Fort Worth,Texas 76102
To Be Used for Office Space and Authorize the Execution of a Real Estate Brokerage Commission Agreement with NJP Commercial Real Estate,
LLC at a Rate of 4.50 Percent of the Base Rent
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the execution of a lease agreement with the Fort Worth Convention and Visitor's Bureau for approximately 9,367 square feet of
space on the west side ground floor at the Fort Worth Convention Center Garage located at 1200 Houston Street, Fort Worth,Texas 76102
to be used for office space; and
2. Authorize the execution of a real estate brokerage commission agreement with NJP Commercial Real Estate, LLC. at a rate of 4.50 percent
of the base rent.
DISCUSSION:
The Fort Worth Convention Center Garage(building)located at 1200 Houston Street, Fort Worth,76102 was built in 2009.The east and west
building ground floor spaces have never been leased or occupied.
In 2019,the City of Fort Worth Property Management Department(PMD)began discussions with the Fort Worth Convention and Visitors'Bureau
(FWCVB)and their real estate representative to relocate their offices in Sundance Square to the west side ground floor of the building.
Through further negotiations between PMD and FWCVB,terms were agreed upon and a Letter Of Intent was executed to lease the approximate
9,367 square feet(SF)of space and move forward with a lease agreement.
The Lease Agreement is base rent/SF+ Double Net(NN)(common area maintenance, insurance, property management fees)+utilities.
The highlighted terms are as follows:
• Primary Term of 10 years
• Base Rent:
Months 1 -12: No Base Rent
Months 13-36: $18.00/SF
- Months 37-84: $20.00/SF
Months 85-120: $22.00/SF
• Two(2)ten-year renewal options at then current market rates.
• Double Net(NN)estimated to be approximately$5.00/SF.
• $75.00/SF base rent credits for tenant improvements amortized over years 2-10 of the primary lease term.
FWCVB will make approximately$1,000,000.00 of improvements to the space and this lease will provide approximately$1,567,000.00 in lease
and parking revenues over the ten(10)year primary lease term.
The Leasing Agreement also stipulates that cooperating brokers in the transaction would be paid a separate commission fee of 4.50 percent of
the base rent. NJP Commercial Real Estate, LLC. is the cooperating real estate broker assisting with the negotiations and upon approval of this
Mayor and Council Communication (M&C)and the execution of the lease,the City will enter into a separate Commission Agreement with NJP
Commercial Real Estate, LLC.for their commission fee.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendations, execution of the lease agreement,funds will be deposited into
the Municipal Parking Fund. The Transportation and Public Works Department and (Financial Management Services Department)is responsible
for the collection and deposit of funds due to the City. Prior to any expense being incurred,the Transportation and Public Works Department also
has the responsibility to validate the availability of funds.
Submitted for City Manager's Office W. Dana Burghdoff 8018
Originating Business Unit Head: Steve Cooke 5134
Additional Information Contact: Mark Brown 5197
Ricardo Salazar 8379
Expedited