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HomeMy WebLinkAboutContract 58769City of Fort Worth Lease Page 1 LEASE AGREEMENT th Street Partners, LP, a Texas limited partnership include the agent include the agents, representatives, and employees of Lessee. In consideration of the duties, covenants, and obligations under this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged and agreed, the parties hereto do hereby agree as follows: SECTION 1. Leased Premises. For and in consideration of the covenants and agreements as expressed herein, Lessor does hereby grant to Lessee the sole use approximately 9,311 square feet of office space located at 2929 W 5th Premises depicted in more detail within Exhibits A & B of this Lease which are attached hereto and incorporated herein. SECTION 2. Use of Leased Premises. The Leased Premises will be used for the Fort Worth Police th Street substation operations. SECTION 3. Term. (a)Initial Term. This Lease shall be for a period commencing on the date in which this -six (66) months after that date (b)Renewal Term. Lessee shall have the option to renew this Lease for one (1) successive (180) days prior to the end of the Initial Term, unless a prior termination is effected by either Lessor or Lessee under the termination provisions of this Lease. Both the Initial Term and any Renewal to govern and control the relationship of the parties during any extensions or holdover by Lessee. (c)Holdover. Unless terminated earlier pursuant to the terms herein, this Lease will expire without further notice upon the expiration of the Initial Term or Renewal Term if exercised. Any holding over by Lessee after any such expiration will not constitute a renewal of the Agreement or give Lessee any rights under the Agreement in or to the Premises, except as a tenant at will. The terms of the Lease shall continue to bind Tenant during any period of holdover, except that Base Rent for the holdover period shall increase to 150% of the Base Rent payable as of the date of expiration of the Lease. City of Fort Worth Lease Page 2 SECTION 4. Rent. (a) Base Rent for Initial Term. Lessee shall pay Lessor Fifteen Thousand Seven Hundred Thirty-Five and 59/100 Dollars ($15,735.59) total base rent monthly during the Initial Term of this Lease starting at the beginning of the seventh month following the Effective Date. Base rental rate shall escalate 2.5% annually. Rent shall b shall be paid in monthly installments. Each installment shall be due by the 1st day of the month. (b) Base Rent for Renewal Term. If Lessee elects to exercise the five (5) year renewal term then monthly base rental rate shall increase by 2.5% annually. (c) Additional Rent: (1) property insurance, repairs and maintenance and management fees, excluding any HVAC costs expenses will be responsibility of Lessor and Lessee will not be responsible for such expenses as Additional Rent. The rate for the Additional Rent for the first year is estimated to be a total amount of $58,846, with monthly payments by Lessee being $4,903.83 (Based on 9311 total s.f, Ins is $1.04 s.f, Property taxes $3.98 s.f, Repairs & Maintenance $0.20 s.f., Property Management Fee $1.10 s.f. for a total estimated amount of $6.31 per s.f.). All Additional Rent will be a pass through of Lessor Costs without any interest or upcharge added. Within ninety (90) days following the close of the calendar year in which the Term of the Lease commences, and within ninety (90) days following the close of each subsequent calendar year, through and including the calendar year in which the last day of the Term occurs, Lessor shall provide Lessee with a reconciliation of the actual Additional Rent due for such calendar year with the aggregate amount of Additional Rent paid for such calendar shows that the total of the monthly payments made by Lessee for the calendar year in question exceeds the amount of Additional Rent due from Lessee for such calendar year, the amount of the overpayment shall be credited to the next payments of Base Rent and estimated Additional Rent due under the Lease, until the overpayment has been reduced to zero. If the reconciliation shows that the total of the monthly payments for the calendar year in question is less than the amount of Additional Rent actually due from Lessee for such calendar year, the reconciliation shall be accompanied by an underpayments of Additional Rent shall be subject to the limitation on annual increases in Additional Rent set forth in the next paragraph), which invoice shall be paid by Lessee within sixty (60) days from and after receipt thereof. With respect to the calendar years in which the first and last days of for such Stub Calendar Year shall be prorated based on the ratio that the actual number of days of the Term falling within such Stub Calendar Year bears to 365. (2) Monthly rates for Additional Rent each calendar year will be adjusted City of Fort Worth Lease Page 3 increases in Additional Rent shall not exceed 5% on a cumulative and compounding basis per year in Additional Rent, the parties shall negotiate in good faith an amendment to the Lease, subject to agrees to provide copies of invoices within 10 days of Lessee written request, email being sufficient to Lessor Representative of Record. SECTION 5. Right of First Refusal. Lessee retains a right of first refusal to purchase the Leased Premises if Lessor actively pursues a sale of the Leased Premises. SECTION 6. Utilities. Lessee agrees to be responsible for the payment of all electricity, water, natural gas, local telephone, or other utility charges that come due and payable during the term Lessee occupies the Leased Premises. Lessee shall arrange for these aforementioned services with providers of their choosing unless Lessee and Lessor agree that Lessor will arrange for the services through an amendment to this Agreement. SECTION 7. Maintenance. (a)Lessor shall maintain the roof, foundation, and structural soundness of exterior walls, HVAC, water and sewer lines, and electrical system (as defined herein), at its own expense in good order, condition, and repair during the Lease Term. Lessor shall also be responsible to repair any damage caused by or resulting from any failure or disrepair of the roof, foundation, exterior walls, HVAC, water and sewer lines, or the electrical system. Lessee agrees to give Lessor notice of defects or need for repairs in the roof, foundation, exterior walls, HVAC, water and sewer lines, or electrical system of the Leased Premises, or damage caused thereby or resulting therefrom, and Lessor will use commercially reasonable efforts to commence repair of such defects or disrepairs within twenty- four (24) hours of receipt of notice from Lessee and shall diligently pursue such repairs to completion. In the event the repairs are not performed by Lessor within a reasonable time under the circumstances, Lessee may, in accordance with Section 12 herein, perform the necessary repairs and t from Lessor in the actual amount of the repairs or (ii) receive a credit against future rent in the actual amount of the repairs. If a defect or disrepair is the result of the negligence of Lessee, Lessee shall be responsible for the actual cost of the (b)Lessee shall provide all routine maintenance in and around the Leased Premises, including replacement of light bulbs, pest control, replacement of light fixture fluorescent lamps and incandescent bulbs and landscaping. Without limiting the foregoing, Lesse pay for Security, Pest Control, Landscape & Grounds Maintenance, Trash removal, Janitorial service Lessee will provide paid invoices to Lessor within 10 days of written request, email being sufficient to Police Department Representative of Record. City of Fort Worth Lease Page 4 (c) Lessee shall keep the Leased Premises in good, clean, attractive, sanitary, and habitable condition in compliance with all applicable health ordinances and regulatory provisions. (d) Lessor will have all floor surfaces cleaned and carpeting shampooed prior to Lessee taking possession of Leased Premises. SECTION 8. Insurance. Lessor agrees to insure the Leased Premises. Such insurance shall provide protection for liability, fire and casualty, and property damage for the property owned by the Lessor, situated at, and including, the Leased Premises. Verification of this coverage shall be provided to Lessee prior to the execution of this Lease. Lessee assumes no liability or financial obligation for the acquisition or maintenance of such insurance; all costs incurred during the course of insuring the Leased Premises shall be borne solely by the Lessor. Lessee is a self-ensured entity and as such, generally, it does not maintain a commercial liability insurance policy to cover premises liability. Damages for which Lessee would ultimately be found liable would be paid directly and primarily by Lessee and not by a commercial insurance company. SECTION 9. Liability and Hold Harmless. LESSOR COVENANTS AND AGREES TO RELEASE, INDEMNIFY, HOLD HARMLESS AND DEFEND LESSEE, ITS OFFICERS, AGENTS, SERVANTS, AND EMPLOYEES, FROM AND AGAINST ANY AND ALL CLAIMS OR SUITS FOR PROPERTY DAMAGE, PERSONAL INJURY, OR ANY OTHER TYPE OF LOSS OR ADVERSE CONSEQUENCE RELATED IN ANY WAY TO THE EXISTENCE OF THIS LEASE OR THE USE OR OCCUPANCY OF THE LEASED PREMISES, REGARDLESS OF WHETHER THE ACT OR OMISSION COMPLAINED OF RESULTS FROM THE ALLEGED NEGLIGENCE OR ANY OTHER ACT OR OMISSION OF LESSOR, LESSEE, OR ANY THIRD PARTY. LESSOR COVENANTS AND AGREEES TO RELEASE, INDEMNIFY, DEFEND, REIMBURSE, AND HOLD HARLMESS THE LESSEE, ITS OFFICEERS, AGENTS, EMPLOYEES AND VOLUNTEERS AGAINST ANY AND ALL CAUSES OF ACTION FOR ENVIRONMENTAL DAMAGES OR THE VIOLATION OF ANY AND ALL ENVIRONMENTAL REQUIREMENTS RESULTING F LEASED PREMISES. SECTION 10. Alterations, Fixtures and Improvements. (a) Approved Alterations/Modifications: Lessee reserves the right to incorporate certain (b) Discretionary Improvements: Any other desired improvements to the Leased Premises by Lessee shall be requested in writing by Lessee with all associated specifications and plans included permitted. City of Fort Worth Lease Page 5 (c) Lessor herein agrees that no property or equipment, owned or installed by Lessee, or any representative of Lessee, shall, under any circumstances, become a fixture, and that Lessee shall reserve the right to remove any and all such property or equipment at any time during the term of this Agreement, or subsequent to its termination by either party. Lessor further agrees that Lessor will, at no time, hold or retain, any property owned or installed by Lessee, for any reason whatsoever. Lessee shall repair any damage arising from the removal of a and otherwise restore the Leased Premises to the condition in which it existed prior to the introduction of such property or equipment, reasonable wear and tear excepted. (d) Within thirty (30) days after execution of this Lease, Lessor shall cause to be removed from free of charge to Lessee, of all currently existing office furniture within Leased Premises, excluding Furniture is being made available to Lessee in the condition existing on the commencement date of this Lease, and Lessor expressly disclaims any and all warranties in connection with the Remaining Furniture, including, but not limited to, warranties of title, condition, merchantability, and fitness. During the Term, Lessee may, at its sole cost, remove any or all of the Remaining Furniture, but only with prior notice to Lessor identifying the Remaining Furniture to be removed and affording Lessor with at least three (3) business days in which to remove some or all of such Remaining Furniture (it being acknowledged that Lessor shall not be obligated to remove any Remaining Furniture, but the failure of Lessor to remove an item of Remaining Furniture within the notice period provided for herein shall be deemed a waiver by Lessor of any and all claim to such Remaining Furniture). Any replacement furniture obtained by Lessee will belong to Lessee and will not be deemed part of the Remaining Furniture for any purpose. SECTION 11. Signs. oval which shall not be unreasonably withheld or delayed, Lessee may paint, erect or display a sign, placard or lettering which is visible from the exterior of the Leased Premises. SECTION 12. Default, Termination, Funding and Non-Appropriation. (a) Funding and Non-Appropriation. This Lease shall terminate in the event that the governing body of Lessee shall fail to appropriate sufficient funds to satisfy any obligation of Lessee hereunder. Termination shall be effective as of the last day of the fiscal period for which sufficient funds were appropriated or upon expenditure of all appropriated funds, whichever comes first. Termination pursuant to this non- appropriation clause shall be without further penalty or expense to either party. (b) Lessee Default. (1) Types of Default by Lessee. A default by Lessee shall exist if Lessee (a) fails to pay rent or comply with any other monetary obligation of Lessee under this Lease by the City of Fort Worth Lease Page 6 deadline for making such payment established pursuant to this Lease and if Lessee does not cure such failure within thirty (30) days after written notice of such failure from Lessor (provided that Lessor shall only be required to provide such written notice once in any twelve (12) month period, and thereafter Lessee shall be in default immediately upon the expiration of thirty (30) days from and after the date upon which payment is due) or (b) Lessee fails to comply with any other obligation under this Lease and if Lessee does not cure such failure within thirty (30) days after written notice within such thirty (30) day period, then Lessee shall not be in default hereunder provided that Lessee commences cure within the thirty (30) days and thereafter diligently pursues the cure to completion). Remedies of Lessor. Upon a default by Lessee for failing to comply with rent obligations, Lessor, may as its sole remedy, terminate this Lease and Lessor shall have the right to collect the past due rent from Lessee. Upon a default by Lessee for a failure to comply with any other provision of this Lease not related to payment of rent, Lessor shall have the right, if such default is not cured by Lessee within thirty (30) days after the giving of notice thereof by Lessor, then Lessor to Lessor, subject to City Council approval, thirty (30) days after written demand therefor by Lessor. default. Such costs must be reasonably documented and copies of such documentation shall be delivered to Lessee with the written demand for reimbursement. Nothing contained in this Section 12b) shall create or imply the existence of any obligation by Lessor to cure any Lessor default (c) Lessor Default. Types of Default of Lessor. A default by Lessor shall exist if Lessor fails to perform or observe any covenant or agreement of this Lease, which failure is not cured within not reasonably susceptible to cure within such thirty (30) day period, then Lessor shall not be in default hereunder provided that Lessor commences cure within the 30 days and thereafter diligently pursues the cure to completion). (1) Remedies of Lessee. Upon a default by Lessor, Lessee, after providing thirty default by Lessee pursuant to this Section 12(c) shall be payable by Lessor to Lessee costs may be applied as a credit to future rent. Such costs must be actually and reasonably osts must be reasonably documented and copies of such documentation shall be delivered to Lessor with the written demand for reimbursement. Nothing contained in this Section 12(c) shall create or imply the existence of any obligation by Lessee to cure any Lessor default. (d) Termination. If this Lease is terminated as a result of the expiration of the Lease term or any renewal period or by default by either one or both parties, neither party shall City of Fort Worth Lease Page 7 have any further obligation or liability to the other under this Lease. Lessor and Lessee shall be bound by the terms, covenants and conditions expressed herein until Lessee surrenders the Leased Premises, regardless of whether the date of surrender coincides with the date of termination of the Lease. SECTION 13. Damage or Destruction. If the building or any other improvement on the Leased Premises should be damaged or destroyed by fire, tornado, flood, or other casualty that prevents the Lessee from full enjoyment or occupation of the Leased Premises for to Lessor. If the damage is such that Lessee cannot use the Leased Premises for their intended use, Lessee shall have the right to terminate this Lease effective immediately upon written notice with no further liability. If Lessee elects not to terminate, and Lessor proceeds to rebuild or repair such building or other improvements on the Leased Premises to substantially the condition in which it existed prior to such damage, Rent, utility charges, and any other costs to be paid by Lessee under this Lease shall abate proportionally during such period and the abatement shall continue until the Leased Premises is fit for use by Lessee in the ordinary conduct of its business. SECTION 14. Right of Inspection. Lessor reserves the right to enter upon the Leased Premises at all reasonable times for the purpose of inspecting the Leased Premises, provided that such entry does above, given the sensitive nature of materials handled by the FWPD, Lessor and all others having access pursuant to this Section 14 to any portion of the Leased Premises used by the FWPD shall not enter the Leased Premises unless accompanied by a represen certified. Lessee shall make a CJIS certified representative available immediately upon request of Lessor. SECTION 15. Surrender of Leased Premises. Upon the termination of this Lease for any reason whatsoever, Lessee shall surrender possession of the Leased Premises in the same condition as the Leased Premises were in upon delivery of possession under the Lease, reasonable wear and tear excepted. Lessee also shall surrender all keys for the Leased Premises to Lessor at the place then fixed for the payment for rent and shall inform Lessor of all combinations on locks, safes, and vaults, if any, on the Leased Premises. Lessee shall remove all its furniture and equipment on or before the termination of the Lease; and Lessee shall be responsible for repairing any damage to the Leased Premises caused by the removal of furniture and equipment. Additionally, if Lessee modifies the Premises with alterations, additions, or improvements made or installed by Lessee, Lessor, upon the termination of this Lease, shall have the right to demand that Lessee remove some or all of such alterations, additions, or improvements made by Lessee, provided, however, if Lessor gave prior approval of such alterations, additions, or improvements, Lessee shall not be required to perform any removal thereof. SECTION 16. Acceptance of Leased Premises. Lessee acknowledges that Lessee has fully inspected the Leased Premises, and on the basis of such inspection Lessee hereby accepts the Leased Premises as suitable for the purposes for which the same are leased. In the event any presently City of Fort Worth Lease Page 8 installed plumbing, plumbing fixtures, electrical wiring, lighting fixtures, or HVAC equipment are not in good working condition on the commencement date of this Lease, Lessor agrees to repair promptly any such defects of which Lessee delivers written notice to Lessor within thirty days after the commencement date of this Lease. SECTION 17. Assignment. Lessee shall not assign or sublet this Lease without the prior written approval of Lessor. Upon issuance of such approval, this Lease shall be binding on the successors, and lawful assignees of Lessor and the successors of Lessee, as permitted by the terms of this agreement and by the laws of the State of Texas and the United States. Any person or entity using or occupying the Leased Premises without a lawful assignment or sublease shall be subject to all the responsibilities and liabilities of Lessee and shall be subject to all provisions regarding termination and eviction. SECTION 18. Notices. Notices required to be made under this agreement shall be sent to the following persons at the following addresses, provided, however, that each party reserves the right to change its designated person for notice, upon written notice to the other party of such change: All notices to Lessor shall be sent to: 5th Street Partners, LP 311 University Drive, Suite 101 Fort Worth, TX All notices to Lessee shall be sent to: With a copy to: City of Fort Worth Police Department Bob Bolen Public Safety Complex 505 West Felix Fort Worth, Texas 76115 Attention: Planning Manager As well as to: City of Fort Worth Property Management Department 900 Monroe, Suite 404 Fort Worth, Texas 76102 Attention: Lease Management City of Fort Worth Lease Page 9 As well as to: City of Fort Worth 200 Texas Street Fort Worth, Texas 76102 All time periods related to any notice requirements specified in the Lease shall commence upon the terms specified in the section requiring the notice. The notice shall be deemed effective when deposited in United States mail postage prepaid, certified mail, return receipt requested, addressed to the other party as set forth above. SECTION 19. Subordination to Mortgages. Lessee accepts this Lease subject and subordinate to any mortgage(s), deed(s) of trust, ground lease(s) or other lien(s) now or hereafter affecting the Leased Premises, and to renewals, modifications, re-financings and extensions thereof and if, but only if, each holder of any mortgage, deed of trust, ground lease or other lien subsequently affecting the Leased Premises has executed and delivered to Lessee a Subordination, Non-disturbance and (hereinafter defined), then to any mortgage(s), deed(s) of trust, ground lease(s) and other lien(s) subsequently affecting the Leased Premises, and to renewals, modifications, re-financings and ge shall be -operative, but upon request from a Mortgagee, Lessee shall execute a commercially reasonable SNDA in favor of the Mortgagee. If requested by a successor-in-interest to all or part of Les attorn to the successor-in-interest if, but only if, such successor-in-interest has executed a SNDA or other agreement whereby such successor in interest has agreed not to disturb or interfere with long as Lessee is not in default under this Lease beyond any applicable notice and cure period. Lessor represents and warrants to Lessee that as of the date of this Lease there is no Mortgage filed against the Leased Premises. Prior to permitting a Mortgagee to obtain a Mortgage on the Property, Lessor will use commercially reasonable efforts to cause such Mortgagee to execute a Subordination, Non-distu satisfactory to Lessor, Lessee and the Mortgagee. The SNDA, among other things, shall provide that in the event a Mortgagee forecloses on the Leased Premises or otherwise enforces its right to divest Lessor of its fee simple interest in the Leased Premises, then such Mortgagee will not disturb Lease beyond any applicable notice and cure period. SECTION 20. Compliance to Laws. Lessor, at its expense, shall comply with all environmental, air quality, zoning, planning, building, health, labor, discrimination, fire, safety and other governmental or regulatory laws, ordinances, codes and other requirements applicable to the Leased Premises, including, without limitation, the Americans with Disabilities Act of 1990 (collectively, City of Fort Worth Lease Page 10 required or customary evidencing compliance with all building codes and permits and approval of full occupancy of the Leased Premises and of all installations therein. Lessor shall cause the Leased Premises to be continuously in compliance with all Building Laws (as they may be amended from time to time). SECTION 21. Entire Agreement. This Lease shall constitute the entire agreement of the Lessor and Lessee, and shall supersede any prior agreements, either oral or written, pertaining to the Leased Premises. SECTION 22. Waivers. One or more waivers of any covenant, term, or condition of the Lease by either Lessor or Lessee shall not be construed as a waiver of a subsequent breach of the same covenant, term, or condition. The consent or approval by either Lessor or Lessee to or of any act by the other party requiring such consent or approval shall not be deemed a waiver or render unnecessary consent to or approval of any subsequent similar act. SECTION 23. Choice of Law and Venue. This Lease and the relationship created hereby shall be governed by the laws of the State of Texas. Venue for any action brought to interpret or enforce the terms of the Lease or for any breach shall be in Tarrant County, Texas. SECTION 24. Brokerage. The parties represent and warrant that neither has dealt with any broker, agent or other person (other than Holt Lunsford Commercial, Inc.) in connection with this leasing transaction and that no broker, agent or other person brought about this leasing transaction. In no event shall Lessee be responsible for any fees charged by any broker, agent or other person. SECTION 25. Charitable Immunity. Lessor agrees that if it is a charitable organization, corporations, entity or individual enterprise having, claiming or entitled to any immunity, exemption (statutory or otherwise) or limitation from and against liability for damage or injury to property or persons under the provisions of the Charitable Immunity and Liability Act of 1987, C.P. R.C., § 84.001 et seq., or other applicable law, that Lessor hereby expressly waives its right to assert or plead defensively any such immunity or limitation of liability as against Lessee. SECTION 26. Eminent Domain. If any part of the Leased Premises is taken by eminent domain, Lessee may either terminate this Lease or continue the Lease in effect. If Tenant elects to continue the Lease, rent will be reduced in proportion to the area of the Leased Premises taken by eminent domain, and Lessor shall repair any damage to the Leased Premises resulting from the taking. Sums awarded or agreed upon between Lessor and the condemning authority for the taking of the interest of Lessor or Lessee shall be the property of Lessor, except for those sums awarded with respect to claims of Lessee against the condemning authority for moving costs and unamortized cost of leasehold improvements paid for by Lessee. If this Lease is terminated under this Section 23, Lessor shall refund to Lessee any prepaid unaccrued rent less any sum then owing by Lessee to Lessor. SECTION 27. Invalidity of Particular Provisions. If any provision of this Lease is or becomes illegal or unenforceable because of present or future laws or any rule or regulation of any governmental entity, the remaining parts of this Lease will not be affected. City of Fort Worth Lease Page 11 SECTION 28. Audit. Lessor agrees that Lessee will have the right to audit the financial and business records of the Lessor the Term of this Lease and for three (3) years thereafter in order to determine compliance with this Lease. Notwithstanding anything to the contrary herein, this section shall survive expiration or earlier termination of this Lease. SECTION 29. 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 spended during the period of, and only to the extent of, such prevention or hindrance, provided the affected Party provides notice of performance, as soon as reasonably possible after the occurrence of the Force Majeure Event. The notice required by this section must be addressed and delivered in accordance with this Lease. Notwithstanding anything contained in this paragraph to the contrary, a Force Majeure Event shall not abate the payment of Base Rent or Additional Rent or otherwise excuse Lessee from performing its monetary obligations under this Lease. This Section 29 herein will not supersede Section 13 of this Lease. SECTION 30. No Waiver of Sovereign Immunity. Nothing in this Lease shall be deemed or SECTION 31. Counterparts. This Lease may be executed in one or more counterparts, each of which when so executed and delivered shall be considered an original, but such counterparts shall together constitute one and the same instrument and agreement. SECTION 32. Effectiveness. This Lease shall be binding upon the Lessee only when signed by its Assistant City Manager and shall be of no force and effect until so executed. SECTION 33. Police Protection, Lessor agrees and understands that Lessee in no way promises to provide increased Police protection or more rapid emergency response time because of this Lease. No special relationship shall exist between Lessor or Lessee other than that of landlord and tenant. Lessee shall provide no greater police protection to Lessor than is provided to all other persons or businesses. [Signature Page Follows] City of Fort Worth Lease Page 12 EXECUTED this ___________ day of _____________, 2023. LESSOR:5th St Partners, LP LESSEE: City of Fort Worth, a Texas municipal corporation By:___________________________By: ___________________________ Dana Burghdoff Name: Assistant City Manager Title: 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. By: ____________________________ Lashanda Dockery Senior Planner APPROVED AS TO FORM AND LEGALITY: _______________________________ Thomas R. Hansen Assistant City Attorney ATTEST: ________________________________ Jannette S. Goodall City Secretary Form 1295: 2022-946534 Contract Authorization: M & C Number: 22-1019 Date: 12.13.2022 City of Fort Worth Lease Page 13 Legal Description of Leased Premises VAN ZANDT, K M ADDITION Block 17 Lot 9 & 10 Aerial view of Leased Premises City of Fort Worth Lease Page 14 Floor Plan of Premises City of Fort Worth Lease Page 15 Permitted Pre-Approved Improvements by Lessee 1. Finish out two (2) existing breakrooms on the west side of the building in order to create locker rooms and shower areas for FWPD personnel; 2. Modify the east side exterior building courtyard within the Leased Premises to create additional onsite parking spaces; The modification of the courtyard shall be done with care to conserve existing trees where possible however both parties recognize that some trees may require removal. 3. Fence in certain onsite parking areas to provide secure parking for City owned vehicles. If it is the desire of Lessor at the end of the Term, Lessee shall be required to remove all fencing from any of the parking lots within the Leased Premises. 4. Paint designated interior spaces within the Leased Premises as listed on Exhibit __; 5. Insert interior doorway spaces and doors within the Leased Premises; and 6. Install and maintain security system and secure exterior doors. Official site of the City of Fort Worth, Texas REFERENCE **M&C 22- 21FWPD AT 2929 NO.:1019 WEST 5TH STREET DATE:12/13/2022 LOG NAME: PUBLIC CODE:L TYPE:CONSENT NO HEARING: SUBJECT: (CD 9) Authorize Execution of a Lease Agreement with 5th Street Partners, L.P. for the Building Located at 2929 West 5th Street, Fort Worth, Texas, 76107 to Be Used as the West 7th Street Substation by the Fort Worth Police Department RECOMMENDATION: It is recommended that the City Council authorize execution of a lease agreement with 5th Street Partners, L.P. for the building located at 2929 West 5th Street, Fort Worth, Texas, 76107 to be used as West 7th Street Substation by the Fort Worth Police Department. DISCUSSION: On August 8, 2018, Mayor & Council Communication (M&C) C-28818, City Council authorized execution of a lease agreement between the City of Fort Worth (City) and the Tarrant Regional Water District (TRWD) for space located at 308 Arthur Street, Fort Worth, Texas, 76107 (Property) to be used by the Fort Worth Police Department (FWPD) as a temporary police substation to serve the West 7th Street area until a more permanent location is identified. On July 2022, the City of Fort Worth Property Management Department (PMD) and FWPD were notified the Property was being demolished for a new canal to be installed as part of the Panther Island Project and the FWPD would need to vacate by December 31, 2022. Through an extensive search, PMD and FWPD identified a stand-alone building, owned by 5th Street Partners, L.P. (Owner), located at 2929 West 5th Street, Fort Worth, Texas, 76107 (Premises) and consisting of approximately 9,311 square feet to be used as the new West 7th Street Substation. PMD and Owner, with approval of the FWPD, have agreed on the following lease terms: Initial Term: Five (5) years starting at a base rental rate of $15,735.59 per month with a 2.5\% rent escalation annually. Renewal Term: One (1) five (5) year renewal term upon expiration of the initial term. Rent Abatement: CITY COUNCIL AGENDA Initial Term: No base rent for the first six (6) months of the initial term valued at $94,413.54 Renewal Term: If FWPD renews the lease, the renewal rate will continue a 2.5\% rent escalation annually. Other expenses to be paid by City: Monthly expenses for property insurance, real estate taxes, repairs/maintenance and management fees for the Premises (Additional Expenses). Any increases to Additional Expenses are capped at 5\% annually from the prior year. FWPD will be responsible for the cost of internet and security of the Premises. Owner, at their expense, is responsible for the maintenance, repair and, if needed, replacement of the HVAC system. Approval of this M&C will provide a more permanent and convenient location for the FWPD to serve the West 7th Street area. Funding is budgeted in the Police Department's rollup within the General Fund. This property is located in COUNCIL DISTRICT 9. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that upon approval of the recommendation, funds are available in the current operating budget, as previously appropriated, in the General Fund. Prior to an expenditure being incurred, the Fort Worth Police Department has the responsibility to validate the availability of funds. TO Department Project Fund Account ID ID Budget Program Activity Year Reference # (Chartfield 2) Amount FROM Department Project Fund Account ID ID Budget Program Activity Year Reference # (Chartfield 2) Amount Submitted for City Manager's Office by: Dana Burghdoff (8018) Originating Department Head: Steve Cooke (5134) Additional Information Contact: Lisa Alexander (8367) Mark Brown (5197)