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HomeMy WebLinkAboutContract 8419 i SECOND AMENDMENT TO FIXED BASE OPERATORS LEASE CITY SECRETARY CONTRACT NO. 7920 THE STATE OF TEXAS § COUNTY OF TARRANT § CITY SECRETARY CONTRACT NO.Fw� WHEREAS, the City of Fort Worth and D. E. Hansen made and entered a certain Fixed Base Operators Lease for the use of and construction of improvements on a tract of land along the East boundary of Meacham Field in the Southerly portion of the airport, said lease being designated as Contract No. 7920 in the office of the City Secretary of the City of Fort Worth, and WHEREAS, the City of Fort Worth and D. E. Hansen desire to amend said lease in order to provide for the operation of a restaurant and for the sale of food and alcoholic beverages on the leased premises; NOW THEREFORE The City of Fort Worth, a municipal corporation in Tarrant County, Texas, acting herein by and through R. N. Line, its duly authorized City Manager, hereinafter called "Lessor", and D. E. Hansen, of Tarrant County, Texas, hereinafter called "Lessee", hereby make and enter the following agreement: 1. That certain Fixed Base Operators Lease dated June 28, 1974, between the City of Fort Worth, as Lessor, and D. E. Hansen, as Lessee, designated as Contract No. 7920 in the office of the City Secretary of the City of Fort Worth, is hereby amended by deleting from ARTICLE IX A"CONCESSIONS EX- CLUDED" thereof Subparagraph (3) prohibiting food sales and Subparagraph (6) prohibiting the sale of alcoholic beverages. OFFICIPa RECORD CITY SECRETARY FT. WORTH, TEX. 2. In addition to the general and specific privileges, uses and rights granted to Lessee in Article I, Paragraphs B, C and D of City Secretary Contract 7920, Lessor hereby grants to Lessee the privilege of operating a restaurant and of selling food, drinks and alcoholic beverages on the demised premises. 3. Lessee shall provide and install, at his own cost and expense, all stoves, refrigerators and other kitchen equip- ment together with all furnishings, interior decorations, supplies and inventories required for the operation of such restaurant. 4. In the event that Lessee shall desire to make alterations or modifications to improvements presently constructed and existing on the demised premises and required for the operation of a restaurant as contemplated in this amendment, Lessee shall first submit to Lessor working plans, drawings and specifications clearly portraying such alterations or modifications, and no such work of alterations or modifications shall be commenced without the prior written consent of the Lessor. Lessee shall comply strictly with all applicable statutes, laws, codes or ordinances in connection with any such alterations or modifications of the demised premises. All alterations or modifications of the demind premises shall be performed at Lessee's sole cost and expense. Lessee shall complete the demised premises improvements, alterations, and modifications free and clear of liens for labor and materials and shall hold the Lessor harmless from any liability in respect thereto. 5. Upon the completion of any alterations or modifications as referred to in the preceding paragraph, and the installation of any fixtures, interior decorations and finishings, of such nature as cannot be removed without damage to the demised premises or the improvements presently constructed or existing thereon, title thereto shall vest in Lessor; provided, however, that during the term of City Secretary Contract No. 7920, or any extension thereof, Lessee at his sole cost and expense, shall maintain, repair, replace and keep in good operating condition, the restaurant, including fixtures, interior dec- oration and finishings as well as all improvements on the demised premises. Title to all removable furnishings, furniture, fixtures and supplies shall remain in Lessee. 6. A. Type of Operation. Lessee shall furnish service to the public on a fair, reasonable and non-discriminatory basis. Lessee shall maintain and operate the demised premises and improvements in a first-class manner and shall keep the same in a safe, clean, orderly and inviting condition at all times. All services and goods sold must conform in all respects to federal, state and municipal laws, ordinances and regulations. B. Personnel. Lessee shall at all times retain an active- qualified, competent and experienced manager to super- vise the restaurant operations and, be authorized to represent and act for Lessee. The name of manager shall be provided to City on a current basis Lessee shall maintain a close check over attendants and employees to insure the maintenance of a high standard of service to the public. Lessee shall operate the restaurant including the sale of food and alcoholic beverages in strict compliance with all applicable federal. state and municipal laws, statutes or ordinances and all directives from the Health, Police and Fire Department of the City of Fort Worth Lessor, by its officers employees. or agents and the officers of any govern- mental subdivision or agency having jurisdiction thereover shall have the right to enter upon and inspect the restaurant premises and operations at all reasonable times 7. Lessee shall bear at his own expense all costs of operating the restaurant and all other operations on the demised premises, and shall pay in addition to rental all other costs connected with the use of the premises and facilities thereon including, but not limiting the generality thereof, maintenance, insurance, water, electricity any and all taxes, .heat, custodial service and supplies, and all permits and licenses required by law. s. Lessee shall obtain and pay all licenses or permits necessary or required by law for the conduct of its operations hereunder. 9. As additional consideration for this lease and the privilege of operating a restaurant and selling food and alcoholic beverages on the demised premises, Lessee agrees to pay to Lessor a per- centage of his gross receipts from the operation of the restaurant and the sale of food and alcoholic beverages on the demised premises as follows: A. From the present through September 30, 1978: Percentage Payable: None B. From October 1, 1978 through the term of this lease: Percentage Payable: 11% Gross Receipts: On all amounts in excess of $50,000.00 per month. 10. The term "gross receipts" as used herein shall include all receipts derived from the operation of the restaurant and the sale of food or alcoholic beverages under this lease regardless of whether the serving or delivery of the products, commodities or merchandise is done or made on the demised premises or else- where, and regardless of whether receipts are derived or collected by Lessee or by any sublessee, it being definitely understood that the gross receipts of all sublessees derived from or related to the operation of the restaurant and/or the sale of food or alcoholic beverages under this lease shall be included in the term "gross receipts" as defined herein. 11. All rental payments hereunder shall be paid to the Aviation Department, Meacham Field Administration Building, Room 228, Fort Worth, Texas, 76109, or to such other address as City may designate by written notice to Lessee. 12. Lessee agrees to maintain accounting records which will correctly reflect all of his gross receipts from the operation of the restaurant and the sale of food and alcoholic beverages. Such accounting records shall be kept in accordance with generally accepted accounting methods and principals and shall be made available for inspection by duly authorized representatives of the City at all reasonable times. . Within a reasonable time after the end of each fiscal year during the term hereof, Lessee shall furnish the City an annual certified audit report by an independent certified public accountant stating the monthly gross receipts of Lessee during such fiscal year. 13. The provisions of this amendment shall be cumulative and shall be read with and as a part of City Secretary Contract No. 7920 ,,as previously amended. All of the terms, conditions and provisions of City Secretary Contract No. 7920 (as pre- viously amended) which are not amended hereby shall remain in full force and effect. EXECUTED this the day of 401 � A.D. 1975. CITY OF FORT WO 4rjz By ML�� City Man ger C"ty ecretary �! D. E. Hansen APPROVE .AS TO FORM AND L GALITY: City Attorney 6611 err=.c� City of Fort Worth, Texas Mayor nd Council communication DATE REFERENCE SUBJECT: Contract with Meacham Aero for PAGE NUMBER Restaurant Operations 1 9/8/75 C-3190 rof The Aviation Board, at its meeting on July 16,1975, approved by a two to one vote the amendment of City Secretary Contract No. 7920 which would permit the sale of food and alcoholic beverages at the Piper Southwest Hangar under lease to Don E. Hansen. Mr. Hansen requested that the exclusion for.such operations be deleted from his lease in exchange for his commitment to .operate a first class restaurant: facility for a minimum of one year. The staff recommendation to the Board requested an additional payment to be made to the City for operating the restaurant. The amount requested was 2 per cent of gross sales in addition to that of the building lease. The staffs intent was to maximize revenues for the airport. In addition, a restaurant is in operation at.the Administration Building which requires the operator to pay the City of Fort Worth 7 per cent of the gross receipts. The addition of another restaurant on Meacham Field will possibly reduce the sales in the Administration Building restaurant.with a corresponding decline in revenue to the City. Mr. Hansen told the Board that the City will benefit from his operation through the payment of the 1 per cent City sales tax and through possible increased fuel sales which would be generated by having such a facility available for transit aircraft. In addition, Mr. Hansen has agreed to pay the City 1 per cent of the gross receipts in excess of $50,000 per month after three years from the date of the lease amendment. A certified annual audit will be provided to determine the amount to be paid. Recommendation It is recommended that the City Council authorize the City Manager to execute the contract amendment permitting Don Hansen, dba Meacham Aero' to sell food and alcoholic beverages at the Piper Southwest Hangar, with payment to be wade,at 1 per cent o£ gross receipts in excess of -$50,000 a month effective three years from date of execution of lease amendment. RNL:ms SUBMITTED BY: DISPOSITIO Y COUNCIL: PRDSSD�Y APPROVED ❑ OTHER (DESCRIBE) / ITY SECRETARY D///A���TE CITY MANAGER 4� �'