HomeMy WebLinkAboutContract 58242 CITY SECRETARY CONTRACT NO. 58242
FORT WORTH SPINKS AIRPORT
HANGAR AND GROUND LEASE AGREEMENT
LEASE SITE 30E
This HANGAR AND GROUND LEASE AGREEMENT ("Lease") is made and entered
into by and between the CITY OF FORT WORTH ("Lessor"), a home rule municipal
corporation organized under the laws of the State of Texas and acting by and through Dana
Burghdoff, its duly authorized Assistant City Manager, and HUFFMAN AVIATION, LLC
("Lessee"), a Texas limited liability company acting by and through Jacob M. Huffman III, it duly
authorized Manager.
In consideration of the mutual covenants, promises and obligations contained herein, the
parties agree as follows:
I PROPERTY LEASED.
Lessor hereby demises to Lessee 35,774 square feet of ground space, with a 23,650
square foot hangar constructed, at Fort Worth Spinks Airport ("Airport") in Fort Worth,
Tarrant County, Texas, identified as Lease Site 30E, ("Premises"), as shown in Exhibit
"A", attached hereto and hereby made a part of this Lease for all purposes.
2. TERM OF LEASE.
2.1. Initial Term.
The Initial Term of this Lease shall commence on the date of execution ("Effective
Date") and expire at l 1:59 PM three years following the Effective Date, unless terminated
earlier as provided herein.
2.2 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 two (2) options to renew this
Lease for additional successive terms of one (1) 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 automatically and simultaneously forfeit its second option to lease the Premises
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Hangar and Ground Lease Agreement,Lease Site 30E
Fort worth Spinks Airport CITY SECRETARY
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FT.WORTH,TX
for a second Renewal Term, and Lessee shall no longer have any rights or interest in the
Premises following the expiration of the Initial Term.
2.3. 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 hangar rate will be adjusted to equal the then Fair Market Value, as
determined by Lessor's market analysis. In no case shall the hangar rate be less than the
value assessed upon completion of a property appraisal completed by a third patty 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.
3. Rates and Adiustments
The rental rates under this Lease are based on Lessor's current published Schedule of Rates
and Charges. Rental rates are subject to increase beginning October 1, 2022, and on
October lst of any subsequent year during the Initial Term, to reflect any upward change in
the Consumer Price Index for the Dallas/Fort Worth Metropolitan Area, as announced by
the United States Department of Labor or successor agency (i) for the first increase, since
the Effective Date of this Lease and (ii) for each subsequent increase, since the effective
date of the last increase; provided, however, that Lessee's rental rates shall not exceed the
then-current rates prescribed by Lessor's published Schedule of Rates and Charges for the
type or types of property similar to the type or types of property that comprise the Premises.
3.1.1 Hangar Rate
Lessee shall commence the payment of rent for the Hangar on the Effective
Date. Lessee hereby promises and agrees to pay Lessor, as annual rent for
the Hangar, Thirty-Five Thousand Four Hundred Seventy-Five Dollars and
00/100 ($35,475.00), at a rate of One Dollar and 501100 ($1.50) per square
foot,payable in equal monthly installments of Two Thousand Nine Hundred
Fifty-Six Dollars and 25/100 ($2,956.25).
3.1.2 Ground Rate
Lessee shall commence the payment of rent for the Ground Space on the
Effective Date. Lessee hereby promises and agrees to pay Lessor, as annual
rent for the Ground Space, Eleven Thousand Eighty-Nine Dollars and
94/100 ($11,089.94) at a rate of Thirty-One cents ($0.31) per square foot,
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Fort Worth Spinks Airport
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payable in equal monthly installments of Nine Hundred Twenty-Four
Dollars and 16/100 ($924.16).
3.2. Five-Year Adiustments
In addition to the Annual Rent Adjustments as mentioned above, in the event this
Lease is amended to extend the term beyond five years and approved by City
Council, on October 1, 2027, and every fifth (5th) year thereafter for the remainder
of the Initial Term (i.e. on October 1st of 2032, 2037, and 2042), rent shall
automatically be adjusted to equal the then-current rates prescribed by the 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.
3.3. Ten-Year Adiustments
If the Lease is ever amended in the future to extend the term beyond ten years, City
will have an appraisal 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.
3.4 Payment Dates and Late Fees.
Monthly rent payments are due on or before the first (1st) day of each month.
Payments must be received during normal business hours by the due date at the
location for Lessor's Aviation Department set forth in Section 15. Rent shall be
considered past due if Lessor has not received full payment by close of business the
tenth (I Oth) 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(l 0%)per month on the entire balance of any overdue rent that Lessee
may accrue.
4. CONSTRUCTION AND IMPROVEMENTS.
4.1 Discretionary Improvements.
Lessee may, at its sole discretion, perform modifications, renovations,
improvements or other construction work on any tract of the Premises. Lessee may
not initiate any Discretionary Improvement on or to the Premises unless it first
submits all plans, specifications and estimates for the costs of same to Lessor in
writing, and also requests and receives in writing approval from Lessor's Director of
Airport Systems or authorized representative ("Director"). Lessee covenants and
agrees that it shall fully comply with all provisions of this Section 4 in the
construction of any such Discretionary Improvements. Lessor shall promptly
review, consider and decide on approval of such plans, specifications and estimates.
Upon completion of any such Discretionary Improvements or the termination of this
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Hangar and Ground Lease Agreement,Lease Site 30E
Fort Worth Spinks Airport
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Lease, Lessor shall take full title to any Discretionary Improvements on the
Premises.
4.2 Process for Auuroval of Plans.
I
Lessee's plans for construction of the Discretionary Improvements shall conform to
the Airport's architectural standards and must also be approved in writing by
Lessor's Planning and Development Department. All plans, specifications and work
shall conform to all federal, state and local laws, ordinances, rules and regulations in
force at the time that the plans are presented for review. Lessor covenants and
agrees that Lessor shall handle any and all such plans for construction and
improvement in a manner consistent with the provisions of Section 4.2 above.
4.3 Documents.
Lessee shall supply the Director with comprehensive sets of documentation relative
to any Discretionary Improvement, including, at a minimum, a copy of the
Certificate of Occupancy, a complete set of Record Drawings and/or As-Built
Drawings in Adobe PDF and AutoCAD formats, and a Summary of the total
cost/value of the Discretionary Improvements.
4.4 Bonds Required of Lessee.
Prior to the commencement of any Improvement, Lessee shall deliver to Lessor a
bond, executed by a corporate surety in accordance with Texas Government Code,
Chapter 2253, as amended, in the full amount of each construction contract or
project. The bonds shall guarantee (i) satisfactory compliance by Lessee with all
applicable requirements, terms and conditions of this Lease, including, but not
limited to, the satisfactory completion of the respective Improvements, and (ii) full
payments to all persons, firms, corporations or other entities with whom Lessee has
a direct relationship for the construction of such Improvements.
In lieu of the required bond, Lessee may provide Lessor with a cash deposit or an
assignment of a certificate of deposit in an amount equal to 125% of the full amount
of each construction contract or project. If Lessee makes a cash deposit, Lessee
shall not be entitled to any interest earned thereon. Certificates of deposit shall be
from a financial institution in the Dallas-Fort Worth Metropolitan Area which is
insured by the Federal Deposit Insurance Corporation and acceptable to Lessor. The
interest earned on the certificate of deposit shall be the property of Lessee and
Lessor shall have no rights in such interest. If Lessee fails to complete the
respective Improvements, or if claims are filed by third parties on grounds relating
to such Improvements, Lessor shall be entitled to draw down the full amount of
Lessee's cash deposit or certificate of deposit and apply the proceeds to complete
the Improvements or satisfy the claims, provided that any balance shall be remitted
to Lessee.
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Fort Worth Spinks Airport
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4.5 Bonds Required of Lessee's Contractors.
Prior to the commencement of any Discretionary Improvement, each of Lessee's
contractors shall execute and deliver to Lessee surety performance and payment
bonds in accordance with the Texas Government Code, Chapter 2253, as amended,
to cover the costs of all work performed under such contractor's contract with
Lessee. Lessee shall provide Lessor with copies of such bonds prior to the
commencement of such Discretionary Improvement. The bonds shall guarantee (i)
the faithful performance and completion of all construction work in accordance with
the final plans and specifications as approved by Lessor, and (ii) full payment for all
wages for labor and services and of all bills for materials, supplies and equipment
used in the performance of the construction contract. Such bonds shall name both
Lessor and Lessee as dual obligees. If Lessee serves as its own contractor, Section
4.5 shall apply.
4.6 Releases by Lessor Upon Completion of Construction Work.
Lessor will allow Lessee a dollar-for-dollar reimbursement from its cash deposit
account or reduction of its claim upon Lessor's certificate of deposit to the extent of
construction costs paid through that date upon (i) where Lessee serves as its own
contractor, verification that Lessee has completed construction work, or (ii) where
Lessee uses a contractor, receipt of the contractor's invoice and verification that the
contractor has completed its work and released Lessee to the extent of Lessee's
payment for such work, including bills paid affidavits and final waivers of liens.
Any unused amounts in the cash deposit account will be refunded to Lessee upon
final completion of the construction work.
5. USE OF PREMISES.
Lessee hereby agrees to use the Premises solely for aviation-related purposes only and
strictly in accordance with the terms and conditions of this Lease. Lessee shall have the
right to sublease portions of the Premises to various third parties ("Sublessees") for
aviation-related purposes only under terms and conditions acceptable to and determined by
Lessee, provided that all such arrangements shall be in writing and approved in advance by
Lessor. All written agreements executed by Lessee to Sublessees for any portion of the
Premises shall contain terms and conditions that (i) do not conflict with Lessee's duties and
obligations under this Lease; (ii) incorporate the terms and provisions of this Lease; (iii)
restrict the use of the Premises to aircraft storage or other aviation or aviation-related
purposes acceptable to Lessor; and (iv) treat users of the same or substantially similar
facilities in a fair and non-discriminatory manner. Lessee shall use a standard lease form
for all Sublessees and shall submit a copy of such standard lease form to the Director prior
to Lessee's execution of its first lease and from time to time thereafter following any
material changes to such lease form. Lessee may make non-material modifications to its
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Fort Worth Spinks Airport
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standard lease to the extent that such are not contrary to Lessor's Sponsor's Assurances
without the prior written consent of Lessor.
6. REPORTS,AUDITS AND RECORDKEEPING.
Lessee shall keep and maintain books and records pertaining to this Lease and Lessee's
operations at the Airport and other obligations hereunder in a manner satisfactory to
Lessor's Internal Auditor and at a location within the City of Fort Worth. Upon Lessor's
request and following reasonable advance notice, Lessee will make such books and records
available for review by Lessor during Lessee's normal business hours. Lessor, at Lessor's
sole cost and expense, shall have the right to audit such books and records in order to ensure
compliance with the terms of this Lease and the Sponsor's Assurances made by Lessor to
the Federal Aviation Administration.
7. UTILITIES.
Lessee, at Lessee's sole cost and expense, shall be responsible for the installation and use of
all utility services to all portions of the Premises and for all other related utility expenses,
including, but not limited to, deposits and expenses required for the installation of meters.
Lessee further covenants and agrees to pay all costs and expenses for any extension,
maintenance or repair of any and all utilities serving the Premises. In addition, Lessee
agrees that all utilities, air conditioning and heating equipment and other electrically-
operated equipment which may be used on the Premises shall fully comply with Lessor's
Mechanical, Electrical, Plumbing, Building and Fire Codes ("Codes"), as they exist or may
hereafter be amended.
8. MAINTENANCE AND REPAIRS.
8.1. Maintenance and Repairs by Lessee.
Lessee agrees to keep and maintain the Premises in a good, clean and sanitary
condition at all times, reasonable wear and tear expected. Lessee covenants and
agrees that it will not make or suffer any waste of the Premises. Lessee, at Lessee's
sole cost and expense,will make all repairs or replacements necessary to prevent the
deterioration in condition or value of the Premises, including, but not limited to, the
maintenance of and repairs to all hangars and other structures, doors, windows and
roofs, and all fixtures, equipment, hangar modifications and surrounding pavement
on the Premises. Lessee shall be responsible for all damages caused by Lessee, its
agents, servants, employees, contractors, subcontractors, licensees or invitees, and
Lessee agrees to fully repair all such damages at Lessee's sole cost and expense.
Lessee agrees that all improvements, trade fixtures, furnishings, equipment and
other personal property of every kind or description which may at any time be on the
Premises shall be at Lessee's sole risk or at the sole risk of those claiming under
Lessee. Lessor shall not be liable for any damage to such property or loss suffered
by Lessee's business or business operations, which may be caused by the bursting,
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Fort Worth Spinks Airport
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overflowing or leaking of sewer or steam pipes, from water from any source
whatsoever, or from any heating fixtures, plumbing fixtures, electric wires, noise,
gas or odors, or from causes of any other matter.
8.2. Compliance with ADA.
Lessee, at its sole cost and expense, agrees to keep and maintain improvements
made by Lessee to the Premises in full compliance at all times with the Americans
with Disabilities Act of 1990, as amended("ADA"). In addition, Lessee agrees that
all future improvements it makes at the Airport shall comply with all ADA
requirements.
8.3. Inspections.
8.3.1. Lessor shall have the right and privilege, through its officers, agents,
servants or employees, to inspect the Premises. Except in the event of an
emergency, Lessor shall conduct such inspections during Lessee's ordinary
business hours and shall use its best efforts to provide Lessee at least two (2)
hours'notice prior to any inspection.
8.3.2. If Lessor determines during an inspection of the Premises that Lessee is
responsible under this Lease for any maintenance or repairs, Lessor shall
notify Lessee in writing. Lessee agrees to begin such maintenance or repair
work diligently within thirty (30) calendar days following receipt of such
notice and to then complete such maintenance or repair work within a
reasonable time, considering the nature of the work to be done. If Lessee
fails to begin the recommended maintenance or repairs within such time or
fails to complete the maintenance or repairs within a reasonable time, Lessor
may, in its discretion, perform such maintenance or repairs on behalf of
Lessee. In this event, Lessee will reimburse Lessor for the cost of the
maintenance or repairs, and such reimbursement will be due on the date of
Lessee's next monthly rent payment following completion of the
maintenance or repairs.
8.3.3. During any inspection, Lessor may perform any obligations that Lessor is
authorized or required to perform under the terms of this Lease or pursuant
to its governmental duties under federal, state or local laws, rules or
regulations.
8.3.4. Lessee will permit the City's Fire Marshal or his or her authorized agents to
inspect the Premises and Lessee will comply with all requirements of the
Fire Marshal or his or her authorized agents that are necessary 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 amended. Lessee shall maintain in proper condition
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Hangar and Ground Lease Agreement,Lease Site 30E
Fort Worth Spinks Airport
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accessible fire extinguishers of a number and type approved by the Fire
Marshal or his or her authorized agents for the particular hazard involved.
8.4. Environmental Remediation.
To the best of Lessor's knowledge, the Premises comply with all applicable federal,
state and local environmental regulations or standards. Lessee agrees that it has
inspected the Premises and is fully advised of its own rights without reliance upon
any representation made by Lessor concerning the environmental condition of the
Premises. LESSEE, AT ITS SOLE COST AND EXPENSE, AGREES THAT IT
SHALL BE FULLY RESPONSIBLE FOR THE REMEDIATION OF ANY
VIOLATION OF ANY APPLICABLE FEDERAL, STATE OR LOCAL
ENVIRONMENTAL REGULATION OR STANDARD THAT IS CAUSED BY
LESSEE, ITS OFFICERS, AGENTS, SERVANTS, EMPLOYEES,
CONTRACTORS, SUBCONTRACTORS OR INVITEES.
9. SIGNS.
Lessee may, at its sole expense and with the prior written approval of the Director, install
and maintain signs on the exterior of the Premises related to Lessee's business operations.
Such signs, however, must be in keeping with the size, color, location and manner of
display of other signs at the Airport. Lessee shall maintain all such signs in a safe, neat,
sightly and physically good condition.
10. RIGHTS AND RESERVATIONS OF LESSOR.
Lessor hereby retains the following rights and reservations:
10.1. 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.
10.2 Lessor reserves the right to develop and improve the Airport as it sees fit, regardless
of the desires or view of Lessee, and without interference or hindrance by or on
behalf of Lessee. Accordingly, nothing contained in this Lease shall be construed to
obligate Lessor to relocate Lessee as a result of any such Airport developments or
improvements.
10.3 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.
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In the event that any such existing or future agreement directly causes a material
restriction, impairment or interference with Lessee's primary operations on the
Premises ("Limitation") for a period of less than seven (7) calendar days, this
Lease shall continue in full force and effect. If the Limitation lasts more than seven
(7) calendar days, Lessee and Lessor shall negotiate in good faith to resolve or
mitigate the effect of the Limitation. If Lessee and Lessor are in good faith unable
to resolve or mitigate the effect of the Limitation, and the Limitation lasts between
seven (7) and one hundred eighty (180) days, then for such period (i) Lessee may
suspend the payment of any rent due hereunder, but only if Lessee first provides
adequate proof to Lessor that the Limitation has directly caused Lessee a material
loss in revenue; (ii) subject to ordinary wear and tear, Lessor shall maintain and
preserve the Premises and its improvements in the same condition as they existed on
the date such Limitation commenced; and (iii) the term of this Lease shall be
extended, at Lessee's option, for a period equal to the duration of such Limitation. If
the Limitation lasts more than one hundred eighty (180) days, then (i) Lessor and
Lessee may, but shall not be required to, (a) further adjust the payment of rent and
other fees or charges, (b) renegotiate maintenance responsibilities and (c) extend the
term of this Lease, or (ii) Lessee may terminate this Lease upon thirty (30) days'
written notice to Lessor.
10.4 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. If any lease between Lessor
and the United States Government executed pursuant to this Section 10.4 directly
causes a Limitation for a period of less than seven(7) calendar days, this Lease shall
continue in full force and effect. If the Limitation lasts more than seven (7) calendar
days, Lessee and Lessor shall negotiate in good faith to resolve or mitigate the effect
of the Limitation. If Lessee and Lessor are in good faith unable to resolve or
mitigate the effect of the Limitation, and the Limitation lasts between seven (7) and
one hundred eighty (180) days, then for such period (i) Lessee may suspend the
payment of any rent due hereunder, but only if Lessee first provides adequate proof
to Lessor that the Limitation has directly caused Lessee a material loss in revenue;
(ii) subject to ordinary wear and tear, Lessor shall maintain and preserve the
Premises and its improvements in the same condition as they existed on the date
such Limitation commenced; and (iii) the term of this Lease shall be extended, at
Lessee's option, for a period equal to the duration of such Limitation. If the
Limitation lasts more than one hundred eighty(180) days, then (i)Lessor and Lessee
may, but shall not be required to, (a) further adjust the payment of rent and other
fees or charges, (b) renegotiate maintenance responsibilities and (c) extend the term
of this Lease, or (ii) Lessee may terminate this Lease upon thirty (30) days' written
notice to Lessor.
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Fort Worth Spinks Airport
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10.5 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.
10.6 Lessee's rights hereunder shall be subject to all existing and future utility and
drainage easements and rights-of-way granted by Lessor for the installation,
maintenance, inspection, repair or removal of facilities owned or operated by
electric, gas, water, sewer, communication or other utility companies. Lessee's
rights shall additionally be subject to all rights granted by any ordinance or statute
which allows utility companies to use publicly-owned property for the provision of
utility services.
10.7 Lessor agrees Lessee shall have the right of ingress and egress to and from the
Premises by means of roadways for automobiles and taxiways for aircraft including
access during the construction phase of airport improvements, unless otherwise
agreed to in writing by both parties. Such rights shall be consistent with the rules
and regulations with respect to the occupancy and use of airport premises as adopted
from time to time by the City of Fort Worth and by the Federal Aviation
Administration or any other state, federal or local authority.
11. 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
location of the Premises. Lessee shall obtain the required insurance specified to be
maintained by a commercial tenant in accordance with Exhibit "C", 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.
11.1. 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.
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Fort Worth Spinks Airport
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11.2. 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 "C", which is
attached hereto and incorporated herein for all purposes.
11.3 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.
12. 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.
13. INDEMNIFICATION.
LESSEE HEREBY ASSUMES ALL LIABILITY AND RESPONSIBILITY FOR
PROPERTY LOSS, PROPERTY DAMAGE AND/OR PERSONAL INJURY OF ANY
KIND, INCL UDING DEA TH, TO ANY AND ALL PERSONS, OF ANY KIND OR
CHARACTER, WHETHER REAL OR ASSERTED, ARISING OUT OF OR IN
CONNECTION WITH ITS USE OF THE AIRPORT UNDER THIS LEASE OR WITH
THE LEASING, MAINTENANCE, USE, OCCUPANCY, EXISTENCE OR
LOCATION OF THE PREMISES, EXCEPT TO THE EXTENT CAUSED BY THE
NEGLIGENCE OR INTENTIONAL MISCONDUCT OF LESSOR, ITS OFFICERS,
AGENTS, SERVANTS OR EMPLOYEES
DURING THE TERM OF THIS LEASE, LESSEE COVENANTS AND AGREES TO,
AND DOES TO THE EXTENT ALLOWED BY LAW, WITHOUT WAIVING ANY
DEFENSES PROVIDED BYLAW, HER EB Y INDEMNIF Y, HOLD HARMLESS AND
DEFEND LESSOR, ITS OFFICERS, AGENTS, SERVANTS AND EMPLOYEES,
FROM AND AGAINST ANY AND ALL CLAIMS OR LAWSUITS FOR EITHER
PROPERTY DAMAGE OR LOSS, INCLUDING ALLEGED DAMAGE OR LOSS TO
LESSEE'S BUSINESS AND ANY RESULTING LOST PROFITS, AND/OR
PERSONAL INJURY, INCLUDING DEATH, TO ANYAND ALL PERSONS, OFANY
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Fort Worth Spinks Airport
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KIND OR CHARACTER, WHETHER REAL OR ASSERTED, ARISING OUT OF OR
IN CONNECTION WITH LESSEE'S USE OF THE AIRPORT UNDER THIS LEASE
OR WITH THE USE, LEASING, MAINTENANCE, OCCUPANCY, EXISTENCE OR
LOCATION OF THE PREMISES, EXCEPT TO THE EXTENT CAUSED BY THE
NEGLIGENCE OR INTENTIONAL MISCONDUCT OF LESSOR, ITS OFFICERS
AGENTS, SERVANTS OR EMPLOYEES.
LESSEE ASSUMES ALL RESPONSIBILITY AND AGREES TO PAY LESSOR FOR
ANY AND ALL INJURIES OR DAMAGES TO LESSOR'S PROPERTY WHICH
ARISE OUT OF OR IN CONNECTION WITHANYAND ALL ACTS OR OMISSIONS
OF LESSEE, ITS OFFICERS, AGENTS, EMPLOYEES, CONTRACTORS,
SUBCONTRACTORS, LICENSEES OR INVITEES, EXCEPT TO THE EXTENT
CAUSED BY THE NEGLIGENCE OR INTENTIONAL MISCONDUCT OF LESSOR,
ITS OFFICERS,AGENTS,SERVANTS OR EMPLOYEES.
LESSOR DOES NOT GUARANTEE POLICE PROTECTION TO LESSEE, ANY
SUBLESSEES OR THEIR PROPERTY. LESSOR IS OBLIGATED ONLY TO
PROVIDE SECURITY ADEQUATE TO MAINTAIN LESSOR'S CERTIFICATION
UNDER FAA REGULATIONS. LESSEE SHALL COMPLY WITH ALL
APPLICABLE REGULATIONS OF THE FAA RELATING TO AMPORTSECURITY.
LESSEE SHALL PAY ALL FINES IMPOSED BY THE FAA ON LESSOR OR
LESSEE RESULTING FROM LESSEE'S OR ANY SUBLESSEES' FAILURE TO
COMPLY WITH SUCH FAA REGULATIONS OR TO PREVENT UNAUTHORIZED
PERSONS OR PARTIES FROM OBTAINING ACCESS TO THE AIR OPERATIONS
AREA OF THE AIRPORT FROM THE PREMISES.
14. TERMINATION.
In addition to termination rights contained elsewhere in this Lease, Lessor shall have the
right to terminate this Lease as follows:
14.1. 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)
calendar days. If Lessee fails to pay the balance outstanding within such time,
Lessor shall have the right to terminate this Lease immediately.
14.2. 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 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.
Huffman Aviation,LLC
Hangar and Ground Lease Agreement,Lease Site 30E
Fort Worth Spinks Airport
Page 12 of 24
14.3. 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.
14.4. 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 14.1, 14.2 or 14.3 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.
14.5. Rights 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.
15. NOTICES.
Notices required pursuant to the provisions of this Lease shall be conclusively determined to
have been delivered when (i) hand-delivered to the other party, its agents, employees,
servants or representatives, or (ii) deposited in the United States Mail, postage prepaid,
addressed as follows:
To LESSOR: To LESSEE:
City of Fort Worth Huffman Aviation,LLC
Aviation Department 12609 Wildcat Way N
201 American Concourse, Suite 330 Burleson, TX 76028-7568
Fort Worth, Texas 76034 (817) 551-9484
Huffman Aviation,LLC
Hangar and Ground Lease Agreement,Lease Site 30E
Fort Worth Spinks Airport
Page 13 of 24
16. ASSIGNMENT AND SUBLETTING.
16.1. In General.
Lessee shall have the right to sublease portions of the Premises as provided by and
in accordance with Section 5 of this Lease. Otherwise, Lessee shall not assign, sell,
convey, sublease or transfer the entirety of its rights, privileges, duties or interests
granted by this Lease without the advance written consent of Lessor.
16.2. Conditions of Approved Assignments and Subleases.
If Lessor consents to any assignment or sublease, all terms, covenants and
agreements set forth in this Lease shall apply to the assignee or sublessee, and such
assignee or sublessee shall be bound by the terms and conditions of this Lease the
same as if it had originally executed this Lease. The failure or refusal of Lessor to
approve a requested assignment or sublease shall not relieve Lessee of its
obligations hereunder, including payment of rentals, fees and charges.
17. 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 upon thirty (30) days' written notice. 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.
18. 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.
19. 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.
Huffman Aviation,LLC
Hangar and Ground Lease Agreement,Lease Site 30E
Fort Worth Spinks Airport
Page 14 of 24
Lessee agrees to comply with all federal, state and local laws; all ordinances, rules and
regulations of Lessor; all rules and regulations established by the 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 and its officers, agents, employees, contractors,
subcontractors, licensees or invitees shall immediately desist from and correct the violation.
19.1 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.
20. 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 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 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 these regulations 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.
21. LICENSES AND PERMITS.
Lessee shall, at its sole expense, obtain and keep in effect all licenses and permits necessary
for the operation of its operations at the Airport.
22. GOVERNMENTAL POWERS.
Huffman Aviation,LLC
Hangar and Ground Lease Agreement,Lease Site 30E
Fort Worth Spinks Airport
Page 15 of 24
It is understood and agreed that by execution of this Lease, Lessor does not waive or
surrender any of its governmental powers.
23. 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.
24. VENUE AND JURISDICTION.
If any action, whether real or asserted, at law or in equity, arises on the basis of any
provision of this Lease or of Lessee's operations on the Premises, venue for such action
shall lie in state courts located 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.
25. 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.
26. 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.
27. FORCE MAJEURE.
Lessor and Lessee will exercise their best efforts to meet their respective duties and
obligations as set forth in this Agreement, but will not be held liable for any delay or
omission in 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 the public enemy; fires; strikes; lockouts; natural disasters;
wars; riots; epidemics or pandemics; government action or inaction; orders of government;
material or labor restrictions by any governmental authority; transportation problems;
restraints or prohibitions by any court, board, department, commission, or agency of the
United States or of any States; civil disturbances; other national or regional emergencies; or
any other similar cause not enumerated herein but which is beyond the reasonable control of
the Party whose performance is affected (collectively, "Force Majeure Event"). The
Huffinan Aviation,LLC
Hangar and Ground Lease Agreement,Lease Site 30E
Fort Worth Spinks Airport
Page 16 of 24
performance of any such obligation is suspended during the period of, and only to the extent
of, such prevention or hindrance, provided the affected Party provides notice of the Force
Majeure Event, and an explanation as to how it prevents or hinders the Parry's performance,
as soon as reasonably possible after the occurrence of the Force Majeure Event, with the
reasonableness of such notice to be determined by the Lessor in its sole discretion. The
notice required by this section must be addressed and delivered in accordance with this
Lease.
28. 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.
29. ENTIRETY OF AGREEMENT.
This written instrument, including any documents attached hereto or 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.
30. 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 that
Lessee'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.
[Signature Pages Follow]
Huffman Aviation,LLC
Hangar and Ground Lease Agreement,Lease Site 30E
Fort Worth Spinks Airport
Page 17 of 24
IN WITNESS WHEREOF, the parties hereto have executed this Agreement in multiples
on this the day of , 2022.
CITY OF FORT WORTH:
Dam W
By'Dana Burghdoff(0 12,2022
--
Dana Burghdoff
Assistant City Manager
Date: Oct 12, 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
, 2022. Oct 12, 2022
SELENA ALA
i Notary Public
• STATE OF TEXAS
"5. Notary I.D.132422528 Selena Ala(Oct 12,2022 16:29 CDT)
9jF OFP My Comm.Exp.Mar.31,2024
Notary Public in and for the State of Texas
APPROVED AS TO FORM ATTEST:
AND LEGALITY: a�F FAR.' -�� 41111
o00000000ao Q
- Tgvrvre�fe S. Goo�1gll
By: �Cr By: Jannette S.Goodall(Oct 13,202216:45 CDT) `J o0 oO�i��
Thomas Royce Hansen, Jannette S. Goodall v o o=d
Assistant City Attorney City Secretary �d�*000 004
` �� SEX Asa000000
M&C: 22-0803 _ V
Approval Date: 10/11/2022
Form 1295 Certificate#: 2022-914862
OFFICIAL RECORD
Huffman Aviation,LLC CITY SECRETARY
Hangar and Ground Lease Agreement,Lease Site 30E
Fort Worth Spinks Airport FT.WORTH, TX
Page 18 of 24
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.
Ba�.6azm�eec�ouirt
Barbara Goodwin
Real Property Manager
LESSEE:
HUFFMAN AVIATION,LLC: ATTEST:
� k
By:�- JA By:
Jacob M. Huffman AV
Manager
Date: 'le 7L Z ��
STATE OF TEXAS §
COUNTY OF §
BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on
this day personally appeared JACOB M. HUFFMAN III, 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 HUFFMAN AVIATION, LLC and that s/he executed the same as the act of HUFFMAN
AVIATION, LLC for the purposes and consideration therein expressed and, in the capacity,
therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this day
, 2022.
=o1�pY PUBi+SHAUNA NICOLE AG NE
NOTARY PUBLIC % Nota Public in and for e Stat of T as
*®* STATE OF TEXAS
^r <" ID#13355968-3
4TFOFS�� MY COMM.EXPIRES 01-28-2026
OFFICIAL RECORD
CITY SECRETARY
Huffman Aviation,LLC
Hangar and Ground Lease Agreement,Lease Site 30E FT. WORTH, TX
Fort Worth Spinks Airport
Page 19 of 24
EXHIBIT A
Map of Lease Site 30E
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Huffinan Aviation,LLC
Hangar and Ground Lease Agreement,Lease Site 30E
Fort Worth Spinks Airport
Page 20 of 24
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Huffinan Aviation,LLC
Hangar and Ground Lease Agreement,Lease Site 30E
Fort Worth Spinks Airport
Page 21 of 24
EXHIBIT B
MANDATORY IMPROVEMENTS
There are no mandatory improvements.
Huffinan Aviation,LLC
Hangar and Ground Lease Agreement,Lease Site 30E
Fort Worth Spinks Airport
Page 22 of 24
EXHIBIT C
FORT WORTfliTf_I
AVIA31014 EXHIBIT -MINIMUM INSURANCE REQUIREMENTS
Corrtmr`ciA En0ronrrwutal Automobile Lability (To
Category Property General H ng�e`p+-s Ima�imNrr, A,ncraR ars Passenger Indksdefiired 3 None '-.d
Insurance Lability Lability
L-ability I_i.abiliCa Vehielees}
Fixes Base Operators tFBO's'� 000,O1313 S5 W-0,011+1 S1"r ",000
A reraft Maintenance Ppo-rator and
4vartics or l+us[tvtnertt Maintenance $1 000,111313 31 "v,+700 S 1,'1+53,OOD
0 ►rater-Pisbat
A roraft Maattenwce Operator are
Av.anics or!'.nstrurnent Maintenance 16..000,000 51.'" -D,1300 S 1,,"-C-D,000
O Lrator-Turbine
Avcnics or Imstrument Mtaintartanoe
Operator (Bench work Only) $1,DOD,OOt1 S 11"+57.000
A rcraft Rental or Flight Traintrrg $1, ,00Dtecca; ertce
$1, ,000 S 1, ,OOD
riperatcr 51+30 C55"cpassenger
A rcraft Charter cr Aireraft 53,,"+"�",00D xu�,-Krtce
, S1 L70 ODDS 1.O60,D00
Mwagenaent Operator
3500.�r"+"t�passenger
Arc raft S1es Operator S1 X0,000 5I01"r'D,ODD+'cca+aeence S 1Ut7j'00D
S 100,fxGlpassenger
A rcraft.Storage Operator
S5,5"w,ODD' $5,000 000 S 1 " 0,000
Avaton ServiceSdef'rWnetcr , 31"000,Oa0 St,W-0,00Oecowr^ence 5
5100,.00Dipassenger"
Other Corm miat'Aercrautcal 51"5,0'3,00a $300!5"raroccurrenre S 1,000.000
Act viies
Temporary Specia¢ed Aviation
SeNoeO S1,"+"+r,000 S300J"+5loecurrenag S 1. .DOD
atror
Nor-Cormm eroal Hangar Lessee 5300,':r5Ywourrence S 1.000,000
Norr.Cummercal Flying Club S1,fd55,00Diocowrnertce S 1.0D0'DOD
100 0Dai assen r
Norr Corr,,mcrc.a12-W-Fueling 5 1,C550'000 33D0,+�fDrcurrenoe S 1.000,000
Nm-Conwnercial Self-Fuelling
Pe"nitee ;DE00,.000 3300 001aloccumenoe 5 250,000
iNtemlive Fusels e. .monas'.
Box Ha w.,T-Hangar,ComnrrrAy 5:300,j ","t oc,,urrenae $ 250,000
Hangar
Other 'f nsw,rarice requirenneo is subject to detemanation by A+eation Department and Risk Management.
Additiorial Insurance Req�xemertts
-Lessee's paboies are be be primary to any otter valid and ooNe obble insuran r_avaiiabie to the City
•Alt policies shall include a Waivw of Subrogar.;on in Ivor of the City(Temporary:R L0 must also include Airport Lessee)
-The r ity of Fort Worth shall be named as Additional Insured(Temporary 3A;30 must aiso rrtchxde Airport Lessee)
-Policies shall have no exdusions by endorsement,which,neidw nullify or amend the required lines of ozwerage,nor decrease the!snits of said oauerage
'C cw-age per aircraft shoui>d be equotaertt Go the average aernift value at cne time and c✓.+:rage pw o numeme sMculd b e ecla:ualent to the average of the
rnaadmu!m vaae cf total aircraft at are time,oat not,less than die aittount motet above
Must include Negligent Instavction Cr✓Aerage
'':f aircraft storage operator s pr.+ow arg s4bhe3stng spaice For aircraft storage
CJ sly requ fed fcr those prawki rg flint rTstruction
Depends on terms of the lease agr�rne rt
If ve?,i ore parked landside-513te,minim•nms world apply
Aviation Minimum Standards, C fiyd Fort 4tirxtrt;Aoiation Dtartnent;0t7,+"+?:2D141
Huffman Aviation,LLC
Hangar and Ground Lease Agreement,Lease Site 30>
Fort Worth Spinks Airport
Page 23 of 24
DEFINITIONS:
C crrerage for the Building includes(but:is not limited to)the building and structures,completed additions to covered
buildings,outdoor fixtures,permanently installed fixtures,machinery and equipment. The budding material used to
maintain and service the insured's premises is aho insured. Business Personal Property owtned by the insured and
used:in the insured's business is covered for direct loss or damage. The coverage includes abut is not limited tort
fumiture and fudures,stock, in,",femerits.and betterments,leased property for which you have a contractual
obligation to insure and several other similar business property items when not speclficaly excluded from coverage.
The policy is also designed to proter_-the insured against loss or damage to the(Personal Property of 4lhiers while
in the insured's care,custody and control.
PROPERTY INSURANCE
Busi wss Income(sometimes called Business Interruptionj affords protection against the loss of earnings of a
br,niness during the tir s required to rebuild or repair ooaered property damaged or destroyed by fire or some other
insured cause of loss.
Extra Expense allows coverage for those additional expenses over and above normal operating expenses paid due
to damage to covered propery from a covered cause of loss.. These expenses could include rent,utilities,mowing
expenses.,telephone,advertising and labor.
This coverage protects the insured for bodily iryury or properny damage to the third;parties,for which they are•legally
liable.The policy covers accidents occurring on the premises or away from the premises. Coverage is pro tided for
injury or damages arising out of.goods or produces made or sold by the named insured_ Coverage is afforded for
the named insured and em:pbyees of the named insured;however,several individuals and orgarai¢ations other than
the named insured may be rov+ered depending upon certain circ rnstano-es specified in the policy. In addition to the
limits,the policy provides supplemental payments for ar.omeyy fees,court costs and other expenses associated with
a claim•or the defense of a liability suit.
Coverage A-Bodiy Injury and Property Damage Liability
CONJIMERCLAL GENERAL Bodily Iryury means physical injury,sickness or disease,including death. Property Damage means physical injury
LIABILITY to tangible property,including the resulting loss of use of that property.
Coverage B-Personal Injury and Advertising Injury Liability
Personal Injury means false.arrest, malicious prosecution,wrongkii entry or e,&Ion, ibel,slander and Violations of
.;person's right of privacy. Advertising Injury means libel,slander,disparagement,violations of a person's right of
privacy,misappropriation and copyright infringement
Coverage C-Medical Payments
Medical P'.aymen's means medical expenses for bodily injury caused by an accident.
H.• NGARKEEPERS Insures the hanger operator ibr legal obligations to,pay damages due to loss to an aircraft that owurs When the
.aircraft is in the care,custody or oor=l of the insured for safekeeping.,storage.,service or repair_Coverage
LI.d,BILITY extends to liability claims in voting an aircraft's loss of use.
Insures the pollution exposure associated with the insured's property and operations,Including costs of cleanup and
remedial or corrective action due to a third-party demand or a govnernment order.The Pollution exclusion in general
ENVIROMENTAL liab•il•:y insurance effectively eliminates coverage for damages for bodily in]ury,property da mage and clea nup costs
ILIPIR.'+.IENT LIABILITI` arising from most types of pollution events. Because of this,customized protection for the pollution exposure of
numerous insureds in this category is essential-
Coverage geared specifiralPy to the operation of aircra`t and the risks invlolved in aviation_Aviation insurance
policies.are d istinady different from those for other areas as transportation and tend to incorporate aviation
AIRCRAFT AND terrrinology,as wel as termindogy,limits and clauses spw:45c to aviation insurance. Passenger liability protects
PASSENGER LLABILITY passengers riding in the accident aircraft who are injured or killed.In many countries this coverage is mandatory
only for commercial cc Large aircraft.Caverage is often sold on a"per-seat"basis,with a speci€ied limit for each
passenger seat.
The liability coverage of the Business auto Policy provides protection against legal liability arising cut of the
A'U'TOMOBILE LIABILIT9E ownership,maintenance or use of any insured automobile. The insuring agreement agrees to pay for bodifyl injury
fTO INCLUDE HIRED& or property damage for-which the insured is legally responsible because of an automobile accident The policy ab_,
sues that,in addition to the payment of damages,the insurer also agrees to defend the insured for all legal
NON-O�'4NED'4'EHICLES'I
defense cost. The defense is in addition to the policy limits.
Si` OF An agreement betr.+_en rwo parties in which one party.agrees to waive subrogation rights against another in tFN
event of a loss. The interv.is to prevent one party's insurer fmm pursuing subrogation against the other parry.
SUBROGATION
Huffman Aviation,LLC
Hangar and Ground Lease Agreement,Lease Site 30E
Fort Worth Spinks Airport
Page 24 of 24
M&C Review Page 1 of 2
Official site of the City of Fort Worth,Texas
CITY COUNCIL AGENDA FART II
Create New From This M&C
REFERENCE **M&C 22- 55FWS HGR AND GRND
DATE: 10/11/2022 NO.: 0803 LOG NAME: LEASE, LSE SITE 30E,
HUFFMAN AVIATION
CODE: C TYPE: CONSENT PUBLIC NO
HEARING:
SUBJECT: (CD 6) Authorize Execution of a New Hangar and Ground Lease Agreement for
Approximately 35,774 Square Feet of Ground Space Including a 23,650 Square Foot
Hangar Known as Lease Site 30E with Huffman Aviation, LLC at Fort Worth Spinks
Airport
RECOMMENDATION:
It is recommended that the City Council authorize execution of a new hangar and ground lease
agreement for approximately 35,774 square feet of ground space, including a 23,650 square foot
hangar known as Lease Site 30E with Huffman Aviation, LLC at Fort Worth Spinks Airport.
DISCUSSION:
On March 17, 2022, staff received a proposal from Huffman Aviation, LLC (Huffman Aviation) for
Lease Site 30E (currently known as Community Hangar 30) at Fort Worth Spinks Airport. The lease
site is comprised of approximately 35,774 square feet of ground space and includes a 23,650 square
foot hangar. In reviewing the proposal, it was determined that Huffman Aviation will provide the
highest and best use for the hangar. Huffman Aviation plans to use the facility for storage of aircraft
used for its flight school.
Community Hangar 30 is currently a City-managed community hangar located at Fort Worth Spinks
Airport (Hangar 30). Huffman Aviation's flight school occupies 9 out of 11 aircraft parking spaces in
Hangar 30. The other two spaces are occupied by aircraft belonging to family trusts in the process of
selling the aircraft parked in each space.
The City of Fort Worth and Huffman Aviation now wish to enter into a new hangar and ground lease
agreement that will commence on the date of execution of the lease agreement (Effective Date) and
expire three (3) years following the effective date (Lease). The Lease will have two (2) options to
renew for an additional one year each. The Lease will not require any mandatory improvements due
to short term of the Lease. All community hangar leases currently within Hangar 30 are under month-
to-month terms and will be terminated upon execution of this new lease agreement. One additional
month-to-month lease for storage space leased by a tenant not storing aircraft will also be terminated.
Annual revenue generated from the new Lease is approximately $35,475.00, paid in monthly
installments of approximately $2,956.25. Annual revenue from the ground space is approximately
$11,089.94, paid in monthly installments of approximately $924.16. 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 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 (CPI) 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. In
addition to the annual rent adjustments, in the event this Lease is amended to extend the term beyond
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M&C Review Page 2 of 2
five years and approved by City Council, five-year rate adjustments will be applied to the ground rate
starting on October 1, 2027, and every fifth year thereafter. If the Lease is ever amended to extend
the term beyond ten years, City will have an appraisal performed by a 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
types or types of property that comprise the premises.
ADVISORY BOARD APPROVAL: On April 21, 2022, the Aviation Advisory Board voted to recommend
that the City Council approve the Hangar and Ground Lease Agreement.
Fort Worth Spinks Airport is located in COUNCIL DISTRICT 6.
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.
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
FID TABLE.xlsx (CFW Internal)
Form 1295.pdf (CFW Internal)
LOCATION MAP 30E.pdf (Public)
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