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HomeMy WebLinkAboutContract 28037-A1AMENDMENT NO. 1 CSC No. 28037-A1 CITY SECRETARY CONTRACT NO. 28037 FORT WORTH SPINKS AIRPORT UNIMPROVED GROUND LEASE AGREEMENT WITH MANDATORY IMPROVEMENTS This AMENDMENT NO.1 ("Amendment") is made and entered into by and between the CITY OF FORT WORTH ("Lessor"), a Texas home rule municipal corporation acting by and through Dana Burghdoff, its duly authorized Assistant City Manager, and JAKE HUFFMAN ("Lessee"), an individual. RECITALS WHEREAS, On or about October 4, 2002, through Mayor and Council Communication (M&C) L-13273, Lessor and Lessee entered into City Secretary Contract ("CSC") No. 28037 ("Lease"), an unimproved ground lease agreement for 3,000 square feet of ground space known as Lease Site E-3 ("Leased Premises"), at Fort Worth Spinks Airport ("Airport"). WHEREAS, through a recent audit by Aviation Department staff, it was revealed that the Lessee had been utilizing an additional 3,000 square feet of space adjacent to the Leased Premises ("Additional Property"); WHEREAS, it was also determined that the Lessee had been making rent payments in excess of what was required under the Lease, approximately double the amount required, for as long as Lessee had been using the Additional Property; WHEREAS, Lessee disclosed to Aviation Department staff that sometime after the Effective Date of the Lease, the Lessee had requested to use and improve the Additional Property with flatwork, described as a concrete pad and that the Lessor verbally approved at the time, with both parties intending that an amendment to the Lease would be executed; WHEREAS, Aviation Department staff was unable to locate any documentation of a lease amendment between Lessor and Lessee to reflect the incorporation of the Additional Property in the Lease; WHEREAS, Aviation Department staff has determined that the additional rent payments made by Lessee since that time were commensurate with the rental rate for the Additional Property; WHEREAS, because Lessor has determined that the parties have been operating in good faith and in the general course of business as if the Additional Property was already incorporated into the Leased Premises, the Lessor does not object, in this circumstance, to continuing to allow the Lessee to occupy the Additional Property; OFFICIAL RECORD Fort Worth Spinks Airport CITY SECRETARY Jake Huffman Amendment No. I to CSC No. 28037 FT. WORTH, TX Page I of 6 WHEREAS, the Parties now desire to memorialize the agreement to amend the Lease to reflect the Additional Property and additional rent required with an effective date for such Amendment to be in effect as of the date in which the Lessee originally began occupying the Additional Property; and WHEREAS, Lessor and Lessee wish to replace the existing "Exhibit A" to the Agreement with a new "Exhibit A" that will reflect the new property survey of the Leased Premises, which will be attached to this Amendment. AGREEMENT NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Lessor and Lessee hereby agree as follows: 1. The Agreement is hereby amended by deleting Section 1.1, "Demised Premises" of the Agreement in its entirety and replacing it with the following: 1.1 Demised Premises. Lessor hereby demises to Lessee approximately 6,000 square feet of Ground Space ("Ground") at Fort Worth Spinks Airport ("Airport") in Fort Worth, Tarrant County, Texas ("Premises"), as shown in Exhibit "A", attached hereto and hereby made a part of this Lease for all purposes. 2. The Agreement is hereby amended by deleting Section 3.1, "Annual Rent for Premises" of the Agreement in its entirety and replacing it with the following: 3.1 Annual Rent for Premises. 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, One Thousand Seven Hundred Twenty -Seven Dollars and 64/100 ($1,727.64,), at a rate of $0.28794813285672 per square foot, payable in equal monthly installments of One Hundred Forty -Three Dollars and 97/100 ($143.97). a Exhibit "A" (as amended) within the Agreement is hereby deleted in its entirety and replaced with a new Exhibit "A", which is attached as Exhibit A to this Amendment. Fort Worth Spinks Airport Jake Huffinan Amendment No. 1 to CSC No. 29037 Page 2 of 6 4 All other terms and conditions of the Lease shall remain in full force and effect. 5. The statements set forth in the recitals above are true and correct and form the basis upon which Lessor and Lessee have entered into this Agreement. The Lease is a public document on file in Lessor's City Secretary's Office and is incorporated herein by reference for all purposes. 0 All other provisions and conditions of the Lease that are not expressly amended herein or directly in conflict with the provisions and conditions of this Amendment shall remain in full force and effect. [Signatures on Following Pages] Fort Worth Spinks Airport Jake Huffinan Amendment No. 1 to CSC No. 28037 Page 3 of 6 Contract Compliance Manager: By signing I acknowledge that 1 am the person responsible for the monitoring and administration of this contract, including ensuring all performance and reporting requirements. //a4.,4a&a:?I'/-UUL Barbara Goodwin Real Property Manager DIRECTOR APPROVAL: -4- Roger Venables Aviation Systems Director LESSEE: JAKE HUFFMAN By - Jake Huffman Date: C"i- 1 b .-L0 ZZ 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 Jake Huffman, 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 Jake Huffman and that he executed the same as the act of Jake Huffman for the purposes and consideration therein expressed and, in the capacity, therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this �_ day 2022. 2o�pPr HAU NOTARY 'COL PURL CUONE *�* STATE OF TEXAS ID # 13355968-3 Dort Worth Spinks Airport Jake l luffman Amendment No. 1 to CSC No. 29037 Page 5 of 6 4 NotW Public in and for the Stat o Te OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX IN WITNESS WHEREOF, the parties hereto have executed this Agreement in multiples on this the day of _, 2022. CITY OF FORT WORTH: By . Oa'(/GLna Burghdoff VL d/J('Gf NYL�O� CST) Dana Burghdoff Assistant City Manager Date: Dec 23, 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 f'or the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this _, 2022. Dec 23, 2022 tPaVPvs SELENA ALA o pp G� Notary Public STATE OF TEXAS GVV.+py Notary I.D. 132422528 My Comm. Exp. Mar. 31, 2024 APPROVED AS TO FORM AND LEGALITY: By:.% Thomas Royce Hansen Assistant City Attorney M&C: 22-1038 Approval Date: 12/13/2022 Form 1295: N/A Selena Ala (Dec 23, 2022 13:09 CST) day Notary Public in and for the State of Texas ATTEST: TarnnelfB S. Goodall By: Jannette S. Goodall (Jan 3, 202307:46 CST) Jannette S. Goodall City Secretary OFFICIAL RECORD Fort Worth Spinks Airport Jake Huffman CITY SECRETARY Amendment No. I to CSC No. 28037 FT. WORTH, TX Page 4 of 6 i m Q SFF-fC wrp� Y a naw a K a 'S FM �Qr tz �ppy.ymS'� K3 G 1jUp O y14+�f 1- SyS�W y�j24o y n C� C��m r `'! z� .IngT =p>t-• �n�--•jii��jj� �, you ZzY L�jO� ? �j � '�7 �sn m }: rn���n- u~i ��o `� � f' � 7 F OOOa U .- a g a �2 Oa a'SN [ti a Y K O -jMyr�iy�ASy�yna� IV='Y4A2^O .a zaS� CZ+ISp�tn�II.SQ 3 0 r�c0 Jg "�y' �6 J31n N;vin;v4�+^. 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Vi f* w u5 '� �i co t, nti a p w yk 0 < (W� j N 1!/ d m Y3W SSWD .-1 a J— _ _ .N 00'2337" W 63.93' o A��1,•,�. .. o t y JoyHI ! fi F# e$XE E r� $ y �.1 •d,d � ow IS "'Od" SNA9dS HU(Q11 1&0.4 4 i. {C], @1 Q9 Y •' .. q,Ot 7M707H "€ 107 RJON 13LVG nC WAAW UA O3a3 a (W w4" N) 1-Sll eeo YLWCI'}WI11MA061 �.NMYlYI 18OjC M.^J,r,i '•RWlbt4 AeMIV'gB i'.k�S it'c MC�ai'.,53ivLYa . 34NiS MfOO �a[MCt0�,L33fO0�#\�s �eMMnYO r M CD N z U U 0 M&C Review Page 1 of 2 Official site of the City of Fort Worth, Texas A CITY COUNCIL AGEND FORT WORTH Create New From This M&C REFERENCE **M&C 22- 55FWS JAKE HUFFMAN DATE: 12/13/2022 NO.: 1038 LOG NAME: LEASE AMEND NO. 1 LEASE SITE E3 CODE: C TYPE: CONSENT PUBLIC NO HEARING: SUBJECT: (CD 6) Authorize Execution of Lease Amendment No. 1 for a Lease Agreement with Jake Huffman Under City Secretary Number 28037 to Increase the Square Footage of the Leasehold from 3,000 Square Feet to 6,000 Square Feet for Lease Site E3 Located at Fort Worth Spinks Airport RECOMMENDATION: It is recommended that the City Council authorize execution of Lease Amendment No. 1 for a Lease Agreement with Jake Huffman under City Secretary Number 28037 to increase the square footage of the leasehold from 3,000 square feet to 6,000 square feet for Lease Site E3 located at Fort Worth Spinks Airport. DISCUSSION: On or about October 4, 2002, the City of Fort Worth (Lessor) and Jake Huffman (Lessee) entered into City Secretary Contract No. (CSC) 28037 (Lease), an unimproved ground lease agreement for the lease and use of real property known as Lease Site E-3 consisting of a total of 3,000 square feet of ground space at City of Fort Worth Spinks Airport. CSC No. 28037 is currently in its initial lease period to expire on September 30, 2032 with two (2) additional five (5) year options to renew for a potential expiration date of September 30, 2042. A recent audit of Lessee's lease accounts discovered that Lessee is billed and paying for a total of 6,000 square feet of ground space for Lease Site E-3. Lessee disclosed to Aviation Department staff that sometime after the effective date of the Lease, Lessee requested to use and improve an additional 3,000 square feet adjacent to the leased premises (Additional Property) with flatwork, described as a concrete pad and that the Lessor verbally approved at the time, with both parties intending that an amendment to the Lease would be executed. Although Aviation Department staff was unable to locate any documentation of a lease amendment between Lessor and Lessee to reflect the incorporation of Additional Property in the Lease, staff has determined that Lessee made additional rent payments since that time which are commensurate with the rental rate for Additional Property. Because Lessor has determined that the parties have been operating in good faith and in the general course of business as if Additional Property was already incorporated into the Lease, the Lessor does not object, in this circumstance, to continuing to allow Lessee to occupy Additional Property. Lessee and Lessor now wish to amend the lease to retroactively include the 3,000 square feet of ground space Lessee is already utilizing, paying for and maintaining adjacent to Lease Site E-3. A recent survey was completed to formally establish the lease boundaries. Lessee currently pays Lessor, as annual rent, $1,727.69, which will be payable in monthly installments of $143.97. The lease rate is adjusted every five years to the then current ground rate published in the Schedule of Rates and Charges. The next scheduled five-year rate adjustment for CSC 28037 is October 1, 2027. Additionally, on October 1 of any given year, rental rates shall be subject to an increase based on the upward percentage change in the Consumer Price Index for the Dallas -Fort Worth Metropolitan area. At no time will the adjusted rate exceed the rate that is current in the Schedule of Rates and Charges. All terms and conditions of the lease agreement not included in the http://apps.cfwnet.org/council_packet/mc review.asp?ID=30591&councildate=12/13/2022 12/13/2022 M&C Review Page 2 of 2 lease amendment will remain the same and are in accordance with City of Fort Worth and Aviation Department policies. 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 amendment to 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 I (Chartfield 2) Submitted for City Manager's Office by: Originating Department Head: Additional Information Contact: ATTACHMENTS FID TABLE.xlsx (CFW Internal) Map of Location Huffman E3.pdf (Public) Dana Burghdoff (8018) Roger Venables (5402) Ricardo Barcelo (5403) Barbara Goodwin (5415) http://apps.cfwnet.org/council_packet/mc review.asp?ID=30591&councildate=12/13/2022 12/13/2022