HomeMy WebLinkAboutContract 11085 CITY SECRETARY _.,,
CONTRACT No. � -�'
i
LEASE AGREEMENT
(PARKING GARAGE LEASE )
BETWEEN
THE CITY OF FORT WORTH
( 'IT ESSOP" )
AN B
HUNT HOTEL/FORT WORTH , LTD.
( "LESSEE" )
PARKING GARAGE LEASE
TABLE OF CONTENTS
ARTICLE I------LEASE TERM
1 .01 Granting Clause 3
1 .02 Habendum Clause 3
1 .03 Commencement Dates and Lessee' s Acceptance of
the Leased Property 3
ARTICLE II-----RENT
2.01 Fixed Minimum Rent 4
2.02 Percentage Rent 5
2.03 Manner of Payment and Prorations of Rent 5
2.04 Annual Statements and Books and Records 6
ARTICLE III----UTILITIES AND TAXES
3.01 Utility Expense 7
3.02 Taxes 7
ARTICLE IV-----EMINENT DOMAIN
4.01 Total Condemnation 7
4.02 Partial Condemnation 8
ARTICLE V------LESSEE'S RIGHT TO SUBLET OR ASSIGN
5.01 Lessee's Right to Assign 9
ARTICLE V_1-----RIGHT TO MORTGAGE
6.01 Leasehold Mortgage 10
6.02 Notice to Mortgage 10
6.03 Rights of Mortgagee 10
6.04 No Assumption by Mortgagee 11
ARTICLE VIZ----PERSONAL INJURY AND LIABILITY INSURANCE
7.01 Indemnity 12
7.02 Liability Insurance 12
ARTICLE V.111---CASUALTY DAMAGE
8.01 Casualty Insurance 13
8.02 Post-Casualty Repair 13
ARTICLE IX -----MAINTENANCE REPLACEMENTS, ALTEEATIONS,
AND ADDITIONS
9.01 Maintenance and Replacements 14
9.02 Alterations 15
9.03 Additions 15
ARTICLE X------DEFAULT AND REMEDIES
10.01 Default 17
10.02 Remedies After Default 17
ARTICLE XI- -----NOTICE S
11.01 Method of Giving Notice 18
ARTICLE XII----MISCELLANEOUS
12.01 Compliance With Laws 18
12.02 Inspections by Lessor 18
12.03 Relationship Between Lessor and Lessee 19
12.04 Number and Gender of Words 19
12.05 Captions 19
12.06 Waivers and Consents 19
12 .07 Force Majeure 20
12.08 Peaceable Possession 20
12.09 Lessor ' s Warranties of Title and Authority 20
12. 10 Certificate of Lease Status 20
12. 11 Lessee ' s Right to Use Public Facilities 21
12. 12 Binding Effect 21
12. 13 Short Form Lease 21
12. 14 UDAG Grant Agreement 21
12. 15 Non-Discrimination 22
EXHIBITS
Exhibit A - Legal Description of the Property
Exhibit B - Schedule of Payments
LEASE AGREEMENT
(PARKING GARAGE LEASE)
THE STATE OF TEXAS
COUNTY OF TARRANT
THIS LEASE AGREEMENT ("Lease") is entered into as of the
day of 1980, by and between THE CITY OF FORT WORTH, a
Texas home-rule municipal corporation ("Lessor") , acting herein by
and through its duly authorized City Manager, and HUNT HOTEL/FORT
WORTH, LTD. , a Texas limited partnership ("Lessee") .
W I T N E S S E T H:
A. Pursuant to the requirements of that certain UDAG Grant
Agreement (herein so called) dated as of September 7, 1979 (City
Secretary Contract No. 10610) , by and between Lessor and United
States Department of Housing and Urban Development ("HUD") , Lessor
and Lessee entered into a certain agreement (the "Agreement to
Lease") dated as of September 7, 1979 (City Secretary Contract No.
10612) , concerning the construction and operation of a subsurface
public parking facility to be located on and under the real property
situated in the City of Fort Worth, County of Tarrant, State of
Texas, more particularly described in Exhibit A attached hereto and
made a part hereof for all purposes (the "Property") .
B. Lessor holds title to the Property and all structures,
improvements, fixtures, and appurtenances located or to be located
upon the Property. Lessor will construct and build a subsurface
public parking garage facility, including means of vertical and
horizontal access and means of ingress and egress by stairways,
ramps, and elevator, in, to, and from such garage (such garage and
means of access and ingress and egress are herein collectively
called the "Facility") . The Facility is to be built substantially in
accordance with those certain plans and specifications prepared by
Jarvis Putty Jarvis, Inc. , Architects for UDAG Parking/Plaza, City
of Fort Worth, Texas, Project Number B-00-AA-48-0013 issued February
4, 1980, together with Addendum No. I dated February 14, 1980,
Addendum No. 2 dated February 21 , 1980, Addendum No. 3 dated
February 25, 1980, Addendum No. 4 dated February 27, 1980, and
Addendum No. 5 dated February 29, 1980 (such plans, specifications,
and addenda herein collectively referred to as the "Plans") ,
pursuant to the construction contract awarded to Henry C. Beck
Company by the Fort Worth City Council on March 13, 1980, in action
on M&C C-5014. The Plans are hereby approved by Lessor and Lessee.
In order to pay for the construction of the Property, Lessor shall
utilize, in part, funds to be provided to Lessor pursuant to the
UDAG Grant Agreement.
C. Lessee is a "Participating Party" as that term is defined
in the UDAG Grant Agreement and has taken assignment from Hunt
Investment Corporation (11HIC11) , a Delaware corporation and the sole
general partner of Lessee, of all of HIC's rights and interests in,
and has assumed all of HICs obligations and duties under, that
certain Developer's Contract and Agreement dated as of September 7,
1979 (City Secretary Contract No. 10609) , by and between HIC and
Lessor, as amended (such agreement as so amended is herein called
the "Developer's Contract" ) .
D. To satisfy the conditions of the UDAG Grant Agreement and
of the Developer's Contract and the additional requirements imposed
by the United States Department of Housing and Urban Development,
Lessor desires to lease to Lessee, and Lessee desires to lease from
Lessor, the Facility and all appurtenances necessary or useful for
the complete and comfortable enjoyment, use, and operation of the
Facility (the Facility and such - appurtenances being collectively
herein called the "Leased Property") . This Lease is executed and
delivered in replacement of and supersedes the provisions of the
Agreement to Lease.
NOW, THEREFORE, in consideration of the mutual covenants,
representations, warranties, and agreements contained herein and for
other good and valuable consideration, the receipt and adequacy of
which are hereby acknowledged, Lessor and Lessee covenant and agree
as follows:
ARTICLE I
Lease Term
1.01 Granting Clause. Lessor hereby demises and leases unto
Lessee, and Lessee hereby leases from Lessor, upon the terms and
conditions herein set forth, the Leased Property.
1.02 Habendum Clause. TO HAVE AND TO HOLD the Leased Property
unto Lessee for a term commencing upon the Initial Commencement Date
(hereinafter defined) and expiring fifty (50) years after the Final
Commencement Date (hereinafter defined) .
1.03 Commencement Dates and Lessee's Acceptance of the Leased
Property. Lessor covenants to complete the construction and develop-
ment of the Property substantially in accordance with the terms and
provisions of the Developer's Contract and to tender the Leased
Property to Lessee upon such completion. It is currently
contemplated that certain portions of the Leased Property will be
completed and ready for occupancy before other portions of the
Leased Property. Upon such completion and tender, Lessee agrees to
take possession of the completed portion of the Leased Property and
to execute and deliver an acknowledgment that such portion of the
Leased Property has been completed substantially in accordance with
the Plans and that the term hereof has commenced as of the date of
such possession. The date of Lessee's acceptance of possession of
the first completed portion of the Leased Property is sometimes
herein called the "Initial Commencement Date". As the remaining
portions of the Leased Property are completed and tendered, Lessee
agrees to take possession thereof and to execute and deliver an
acknowledgment that such other portions of the Leased Property have
been completed substantially in accordance with the Plans. The date
of Lessee's acceptance of possession of the last completed portion
of the Leased Property is sometimes herein called the "Final
Commencement Date."
ARTICLE II
Rent
2.01 Fixed Minimum Rent. Lessee shall pay to Lessor an annual
minimum rental (the "Fixed Minimum Rent") equal to the greater of
(i) $60,000 plus an increase of $5,000 on January 1 , 1986, and on
every fifth anniversary thereafter as shown in the schedule of
payments attached hereto and incorporated herein as Exhibit B, or
(ii) $60,000 plus one-half (1/2) of the CPI Increase (hereinafter
defined) . The term "GPI Increase" means $60,000 multiplied by a
fraction, the numerator of which is the latest available CPI prior
to January 1 , 1986, or prior to every fifth anniversary of such date
thereafter and the denominator of which is the latest available CPI
prior to the Final Commencement Date, minus $60,000. If on January
1 , 1986, or on every fifth anniversary of such date the rental
amount determined under clause (ii) above is greater than the
applicable amount shown on Exhibit B, then the Fixed Minimum Rent
for the next five years shall be the amount determined under clause
(ii) above; otherwise the Fixed Minimum Rent for such period shall
be the applicable amount shown on Exhibit B. The term "CPI" means
the Consumer Price Index for all Urban Consumers, U.S. Average
(1967=100) , All Items, for the Dallas/Fort Worth Standard
Metropolitan Statistical Area as published by the Bureau of Labor
Statistics of the United States Department of Labor. In the event
the CPI shall be hereafter converted to a different standard
reference base or otherwise revised, the determination of the CPI
Increase shall be made with the use of such conversion factor,
formula or table as may be published by the Bureau of Labor
Statistics or, if not published by the Bureau of Labor Statistics,
then with the use of such conversion factor, formula or table as may
be established by any nationally recognized publisher of similar
statistical information as may be then selected by the parties. In
the event the CPI shall cease to be published, then, for the
purposes oF' determining the CPI Increase, there shall be substituted
for the CPI such other economic index as the parties shall then
reasonably select.
2.02 Percentage Rent. For each calendar year after January 1 ,
2006, Lessee shall pay to Lessor a percentage rental (the
"Percentage Rent" ) equal to eighty percent (80%) of the annual net
profits arising from Lessee's operation of the Leased Property if
such percentage rental is greater than the Fixed Minimum Rent. The
term "net profits" means (A) all gross receipts actually received by
Lessee arising out of the operation of the Leased Property, such
receipts to include but not be limited to revenues collected from
(i) registered and casual guests of the Hyatt Regency Fort Worth for
furnishing parking spaces to such persons, (ii) sublessees, and
(iii) persons using or subleasing a portion of the Leased Property
as exhibit hall space, less (B) all operating costs and expenses
incurred in connection with such operation including, but not
limited to, costs and expenses for utilities; insurance;
maintenance; repairs; replacements; taxes; labor; overhead
attributable and fairly allocable to such operation; and all other
operating costs and expenses incurred in connection with such
operation or with performance of the obligations herein imposed upon
Lessee. Lessee shall also be entitled to deduct, as an operating
expense, from the gross receipts for any year the amount of all
accrued operating losses sustained in the operation of the Leased
Property for previous years of the period from January 1 , 2006, to
the then applicable year; provided, the amount of such losses shall
not exceed the cumulative amount of the Fixed Minimum Rent for all
such prior years from January 1 , 2006. Lessee covenants to operate
the Leased Property in an efficient and business-like manner so as
to produce therefrom as much net profits as is feasible under the
circumstances. Depreciation of improvements, fixtures, furniture,
and equipment placed by Lessee at its cost and expense upon the
Leased Property is not a deductible item.
2.03 Manner of Payment and Prorations of Rent. The Fixed
Minimum Rent shall be payable semi-annually, in arrears. Lessee
shall pay to Lessor one-half of the Fixed Minimum, Rent for each year
during the term hereof on or before July 1st and on or before
January Ist of each such year; provided, however, if the Initial
Commencement Date be a day other than the first day of a calendar
year, or, if the term of this Lease expires before the last day of a
calendar year, the amount of the Fixed Minimum Rent shall be
prorated based on the actual calendar days during which Lessee had
possession of the Leased Property. During the period between the
Initial Commencement Date and the Final Commencement Date, the Fixed
Minimum Rent shall be equal to $60,000 multiplied by the number of
parking spaces possessed by Lessee pursuant to paragraph 1.03 and
divided by the total number of parking spaces to be contained in the
Leased Property. For each year after January 1, 2006, if the
Percentage Rent exceeds the Fixed Minimum Rent, Lessee I shall pay to
Lessor the difference thereof on or before April 15th of the
succeeding year or on or before the ninetieth (90th) day following
the expiration of this Lease.
2.04 Annual Statements and Books and Records. Lessee shall keep
reasonable books and records in accordance with generally accepted
accounting principles sufficient to allow accurate computation of
the Percentage Rent payable hereunder and shall, provide Lessor such
summaries of or excerpts from such books and records in support of
calculations of the Percentage Rent payable as Lessor may reasonably
request. Lessee shall deliver to Lessor on or before April 15, 2007,
and on or before April 15th of each year thereafter and on or before
the ninetieth (90th) day after the expiration of this Lease an
annual operating statement showing the determination of the
Percentage Rent for the previous year, including gross receipts,
operating costs and expenses, operating losses, and net profits.
Commencing upon January 1, 2006, Lessor shall have the right, at
reasonable times and in the Offices of Lessee, to examine that
portion of Lessee's books and records which relate to the Percentage
Rent. Lessor shall have the right to have independent auditors make
a special audit of that portion of Lessee's books and records which
relate to the Percentage Rent. If Lessee*s determination of the
Percentage Rent is found to be incorrect to an extent of more than
five percent (5%) . Lessee shall pay for such audit; otherwise, the
cost and expense of such audit shall be borne by Lessor.
ARTICLE III
Utilities and Taxes
3.01 Utility Expense. Lessee covenants to pay all costs and
expenses for water, gas, electricity, sewage, garbage removal,
heating, ventilation, air conditioning, and other utility services
in and to the Leased Property.
3.02 Taxes!. The parties hereto acknowledge the fact that
Lessor, being a municipal corporation of the State of Texas, is not
required to pay taxes on real property which it owns, including its
fee simple estate and reversionary interest in the Leased Property.
In the event that any taxes, governmental charges, or other
assessments are levied against the leasehold estate created hereby
or the improvements placed upon the Leased Property, such taxes,
charges, or assessments shall be paid by Lessee. Lessee shall have
the right to contest any such taxes, governmental charges, or other
assessments so levied.
ARTICLE IV
Eminent Domain
4.01 Total Condemnation. If all or a part of the Leased
Property is taken for any public or quasi-public use or by nego-
tiated purchase in lieu of eiti-.er such use (all such methods of
taking being herein called "Eminent Domain") , such that it is
impractical or infeasible to restore the remainder of the Leased
Property, Lessee and Lessor shall have the right to seek separate
awards for their respective interests in the Leased Property. This
Lease shall terminate and the rent and other obligations of Lessee
shall be abated upon such Eminent Domain, and the parties all have
no further obligations hereunder upon obtaining their separate
awards as a result of such Eminent Domain; provided, however, the
termination of this Lease shall not prejudice or otherwise affect
the rights of the parties to the awards made or damages granted as
result of such Eminent Domain.
4.02 Partial Condemnation. Lessor shall notify Lessee of the
receipt by Lessor of any notice of the intent by any governmental
authority to exercise Eminent Domain against the Leased Property, or
any part thereof, within fifteen (15) days after Lessor receives
such notice. If the portion of the Leased Property to be taken or
taken by Eminent Domain is such that it is practical and feasible in
the reasonable judgment of Lessor to restore the remainder of the
Leased Property, then the parties shall each seek separate awards
for their respective interests in the portion of Leased Property so
taken; provided, however, subject to abatement, the rights and
obligations of both parties hereunder shall remain in full force and
effect, and Lessor shall forthwith perform or cause to be performed
all renovation work to the extent practical and feasible to restore
the remainder of the Leased Property. Lessor shall "notify Lessee
whether, in Lessor's reasonable judgment, it is practical and
feasible to restore the remainder of the Leased Property by giving
written notice of such determination within sixty (60) days after
Lessor receives notice of the intent of the governmental authority
to exercise partial Eminent Domain and the plans for the public work
and exact nature of such Eminent Domain have been finalized. If
Lessor should notify Lessee that Lessor has determined it is not
practical and feasible to restore the remainder of the Leased
Property, this Lease shall terminate unless Lessee elects to restore
or cause to be restored, the remainder of the Leased Property and to
continue this Lease in force by delivering written notice to Lessor
of such election within sixty (60) days of Lessor's earlier deter-
mination. In the event Lessee elects to restore or cause the
remainder of the Leased Property to be restored, Lessee shall cause
detailed plans and specifications of such restoration to be prepared
by competent architects or engineers and submit such plans and
specifications to Lessor for its approval, which approval shall not
be unreasonably withheld, and Lessee agrees to complete such work of
restoration substantially in accordance with such approved plans and
specifications and at its own expense, except that Lessee shall have
the right and be enti ,,Ied to expend, and Lessor hereby assigns to
Lessee, any part or all of the Lessor's net proceeds of the award
received on account of such partial Eminent Domain which may ho
reasonably required to restore the remainder of the Leased Property.
If Lessee does not elect to so restore the remainder of the Leased
Property, then such Eminent Domain shall be governed by the
provisions of paragraph 4.01. The rent and other obligations imposed
upon Lessee hereunder shall be abated in a manner that is fair and
equitable upon any such partial Eminent Domain.
ARTICLE V
Lessee's Right to Sublet or Assign
5.01 Lessee's Right to Sublet or Assign. Lessee shall have the
right to sublet the Leased Property in whole or part. Lessee and its
successors or assigns may sell or assign its leasehold estate
hereunder in whole or in part to any one or more of the following
persons (collectively "Permitted Assignees") : (a) any Affiliate of
Ray L. Hunt (hereinafter defined) ; (b) any Mortgagee (hereinafter
defined) ; (c) Hyatt Corporation, a Delaware corporation, or its
affiliates; or (d) any person who in the reasonable judgment of
Lessor has sufficient financial capability and stability; and, upon
any such assignment, Lessee or its successors or assigns shall be
relieved from its liabilities and obligations hereunder to the
extent of any such assignment of its rights and interests in the
leasehold estate hereunder. Notwithstanding the above, Lessee and
its successors or assigns may otherwise sell or assign its leasehold
estate hereunder in whole or in part; provided, however, unless
Lessor specifically agrees to the contrary at the time of any such
other assignment, Lessee shall remain liable to Lessor after such
other assignment. As used herein, the term "Affiliate of Ray L.
Hunt" means, as of any time, HIC or Ray L. Hunt and any (a) person
who at such time is the immediate ancestor of Ray L. Hunt or any
living descendant of any such immediate ancestor (and for this
purpose, an adopted person shall be deemed to be the natural issue
of his or her adopting parents) or the spouse of any such living
descendant (including the wife of Ray L. Hunt) ; (b) trustee of any
then existing trust principally for the benefit of Ray L. Hunt
and/or one or more of such persons described in (a) preceding; (c)
corporation, the then "controlling persons" (within the meaning of
Section 2(11) of the Securities Act of 19 33, as amended) , of which
are HIC or Ray L. Hunt and/or any one or more of the persons or
trustees described in (a) and (b) preceding; and (d) partnership or
other entity, the then controlling persons (as above defined) of
which are Ray L. Hunt, HIC, and/or any one or more of the persons,
trustees, or corporations described in (a) , (b) , and (c) preceding.
ARTICLE VI
Right to Mortgage
6.01 Leasehold Mortgage. Lessee and its successors or assigns
shall have the right, from time to time and at any time, to encumber
by mortgage, deed of trust, security agreement, or other instrument
in the nature thereof (any such instrument is herein called
"Mortgage") , as security for any actual indebtedness, the leasehold
estate created hereby, the right to use and occupy the Leased
Property and all of Lessee' s right, title, and interest in and to
the Leased Property created hereby and any other property so affixed
to the Leased Property as to be a part thereof; provided that no
mortgagee or trustee or anyone that claims by, through, or under
(including a purchaser at foreclosure or by conveyance in lieu of
foreclosure) such Mortgage (any such person is herein called
"Mortgagee" ) shall by virtue thereof acquire any greater right in
the Leased Property than the Lessee then had under this Lease.
6.02 Notice to Mortgagee. If at any time after execution and
recordation of any Mortgage the Mortgagee shall notify Lessor in
writing that any such Mortgage has been given or executed by Lessee
and shall at the same time furnish Lessor with the address to which
the Mortgagee desires copies of notices to be mailed, or designates
some person or corporation as its agent and representative for the
purpose of receiving copies of notices, Lessor hereby agrees to mail
to such Mortgagee or to the agent or representative so designated by
such Mortgagee at the address so given duplicate copies of any and
all notices in writing that Lessor may from time to time give or
serve upon Lessee under the terms and provisions of this Lease.
6.03 Rilhts of Mortgagee. Each Mortgagee, at its option, at any
time within thirty (30) days after the rights of Lessee would have
been forfeited to Lessor pursuant to the terms of paragraph 10.02 of
this Lease, may pay any of the rent due hereunder or make any other
payment required to be paid by Lessee by the terms of this Lease or
may do any act or thing which may be necessary or proper to be done
in the observance of the covenants and conditions of this Lease or
to prevent the forfeiture of this Lease; and all payments so made
and all things so done and performed by any Mortgagee shall be
effective to prevent a forfeiture of the rights of Lessee hereunder
as if the same would have been timely done and performed by Lessee
instead of by a Mortgagee; provided, however, if any Default
(hereinafter defined) is not reasonably susceptible of being cured
by such Mortgagee within such thirty (30) day period, such Mortgagee
shall have a reasonable period of time to commence to cure any such
Default and proceed with reasonable promptness and diligence to so
cure such Default. However, if any Default is not reasonably capable
of being cured by any such Mortgagee, or if Lessee elects to
terminate this Lease pursuant to paragraphs 4.02 or 8.02, Lessor
shall, if requested by such Mortgagee, upon termination of this
Lease, enter into a new lease agreement with such Mortgagee, so long
as such Mortgagee cures all other Defaults and such Mortgagee is any
institutional lender engaged in the business of making mortgage or
other loans (including, but not limited to, First National Bank in
Dallas and Aetna Life Insurance Company) or any other person who in
the reasonable judgment of Lessor has sufficient financial capa-
bility and stability, such new lease to be upon the same terms and
conditions of this Lease for the balance of the term. Any Mortgage
given by Lessee may, if Lessee desires, be so conditioned as to
provide that as between the Mortgagee and Lessee, the Mortgagee, on
making good and performing a Default shall be thereby subrogated to
or put in the position of assignee of any or all of the rights of
Lessee under the terms and provisions of this Lease.
6.04 No Assumntion by Mort------ No Mortgagee of Lessee
hereunder shall be or become liable to Lessor as an assignee of this
Lease or otherwise unless and until such Mortgagee expressly assumes
by written instrument such liability. No such assumption shall be
inferred from or result from foreclosure or other appropriate
proceedings in the nature thereof or as the result of arry other
action or remedy provided for by any Mortgage or from a conveyance
from Lessee pursuant to which the purchaser at foreclosure or
grantee shall acquire the rights and interest of Lessee under the
terms of this Lease; provided, however, any such Mortgagee or any
person claiming by, through, or under such Mortgagee shall be liable
to Lessor under the terms hereof for any period of time during which
any such Mortgagee or other person had possession of the Leased
Property; and, provided further, to keep this Lease in full force
and effect, any such Mortgagee or other person must expressly assume
the obligations of Lessee remaining hereunder within one-hundred and
twenty (120) days after such Mortgagee or other person has taken
possession of the Leased Property. Upon an assignment of the
leasehold estate hereunder, in whole or in part, by a Mortgagee or
other person claiming under a Mortgage to any Permitted Assignee,
such Mortgagee or other person shall be relieved of any further
liabilities or obligations hereunder imposed or assumed to the
extent of any such assignment.
ARTICLE VII
Personal Injury and Liability Insurance
7.01 Indemnity. To the extent not covered by insurance required
to be maintained hereunder, Lessee shall save Lessor harmless and
indemnify Lessor from and against all liability arising out of
Lessee's operations of the Leased Property. Further, to the extent
not covered by insurance required to be maintained hereunder, each
party hereto shall save the other harmless and indemnify it from and
against all liability arising out of bodily injury, loss, claims, or
damage to any person or property anywhere occasioned by any
negligent act or omission of such party, its employees, agents,
licensees, or contractors. As used in this Lease, the term "person"
means any person, firm, corporation, association, partnership,
trust, joint venture, or any other entity.
7.02 Liability Insurance. Lessee shall cause to be maintained
with respect to the operation of the Leased Property such public
liability insurance as Lessee deems reasonable and prudent, insuring
Lessor. Lessee and each Mortgagee, as co-assureds. Such liability
insurance may be a part of Lessee's blanket policy for Lessee and
its affiliates; provided, however, the limits of such insurance
shall be in at least the amounts of $250,000 for personal injury or
death, $100,000 for property damage, and $1,000,000 for each
occurrence.
ARTICLE VIII
Casualty Damage
8.01 Casualty Insurance. Lessee shall cause to be maintained
property damage and fire and extended coverage insurance in an
amount equal to at least ninety percent (90%) of the full insurable
value of the Leased Property and the improvements thereon. Lessee
shall add Lessor as an additional insured on such insurance. All
such insurance shall be carried, to the extent practicable, for the
protection of both Lessor and Lessee. Each policy shall contain a
standard mortgagee's clause, and Lessor, Lessee, and each Mortgagee
shall be named as an assured in all such policies of insurance, as
their interests may appear. Each such policy shall provide for a
waiver by the insurer of rights of subrogation against Lessor and
Lessee. Such casualty insurance may be a part of Lessee's blanket
policy for Lessee and its affiliates.
8.02 Post-Casualty Repair. In the event that all of the Leased
Property is either damaged or destroyed by casualty, or in the event
that a portion of the Leased Property is either damaged or destroyed
by casualty to the extent that the remaining portion of the Leased
Property is not capable of being economically or practically
operated, Lessee shall have the option to (a) declare this Lease
cancelled and terminated, or (b) as soon as practicable thereafter,
at its sole expense, utilizing all insurance proceeds payable by
reason of such casualty, renovate and repair the Leased Property or
the damaged or destroyed portion of the Leased Property in a manner
to render the Leased Property a useable structure for the intended
purposes and restore the Leased Property in substantially the
condition as existed prior to such casualty. If Lessee elects to
declare this Lease cancelled and terminated, Lessee shall notify
Lessor, within sixty (60) days after any such casualty, of such
election and this Lease shall be of no further force and effect as
13
of the date of such casualty and, subject to the rights of a
Mortgagee under paragraph 6.03, Lessor shall be entitled to proceeds
of insurance payable by reason of such casualty. In the event that a
portion of the Leased Property is either damaged or destroyed by
casualty to the extent that the remaining portion of the Leased
Propery is capable of being economically and practically operated,
Lessee shall repair or renovate such damaged or destroyed portion of
the Leased Property and shall be entitled to recover all insurance
proceeds payable by reason of such casualty. If Lessee elects or is
obligated to renovate and repair the Leased Property, or any portion
thereof, the Rent and other obligations of Lessee shall be abated in
a manner that is fair and equitable during the period of repair and
restoration.
ARTICLE IX
Maintenance, Replacements, Alterations and Additions
9.01 Maintenance and Replacements. Lessee shall, at its sole
expense. (a) keep or cause to be kept the Leased Property in a neat,
clean, and good condition, and (b) make or cause to be made all
necessary non-structural repairs and replacements of fixtures,
furnishings, and equipment required for the proper conduct of the
business permitted hereunder. Lessee shall provide janitorial
service for, and keep free from trash and rubbish, the Leased
Property. Lessee shall provide adequate security services for the
Leased Property. Lessor shall, at its sole expense, keep the
foundation, the exterior walls, the roof, and all other structural
improvements of the Leased Property described by the Plans in good
repair and shall make or cause to be made all such structural
repairs and replacements necessary to maintain the Leased Property,
ordinary wear and tear excepted. Lessor shall also be responsible
for keeping the surface area improvements shown by the Plans in a
neat, clears, and attractive first-class condition. Such improvements
shall not include the landings for the stairwells and the elevator
located on the surface of the Property. Lessor further covenants
that such surface area improvements which are to be maintained by it
shall be used at all tines in a first-class manner consistent with
14
projects of the nature and magnitude contemplated by the parties
hereto. In the event that, at any time, or from time to time during
the term hereof, either party (the ,Complaining Party") believes
that the use or maintenance for which the other party (the
"Maintaining Party") is responsible is not consistent with a
first-class standard, the Complaining Party may, by written notice
delivered to the Maintaining Party, specify the particular practice
or omission which the Complaining Party believes to be inconsistent
with such standard, and the Maintaining Party shall, within 30 days
after receipt of such notice, discontinue such practice or cure such
omission unless the Maintaining Party, in good faith, believes that
such practice or omission is consistent with a first-class standard
of use and maintenance agreed to by the parties, in which event, the
Maintaining Party shall so certify its belief to the Complaining
Party by written notice to the Complaining Party within 30 days
after receipt of the Complaining Party's earlier notice of
complaint. Lessor must use its best efforts to schedule and complete
its maintenance and repair and replacement obligations in a manner
which avoids substantial interference with Lessee's operation of the
Leased Property and the Hyatt Regency Fort Worth hotel.
9.02 Alterations. Lessee shall have the right, at its sole cost
and expense, to make alterations to the Leased Property so long as
Lessee has obtained the prior consent of Lessor which consent shall
not be unreasonably withheld. Nothwithstanding anything to the
contrary herein contained, Lessee shall bear and be responsible for
any increase in operating costs and expenses attributable to or
caused by any such alterations to the Leased Property; provided,
however, such operating costs and expenses are deductible in the
determination of the Percentage Rent.
9.03 Additions. Lessee shall have the right, at its sole cost
and expense, to make additions to the Leased Property so long as
Lessee has obtained the prior consent of Lessor which consent shall
not be unreasonably withheld. All additions affixed to the Leased
Property shall be and become property of Lessor upon termination of
15
this Lease and a part of the Leased Property upon construction or
installation. In connection with Lessee's right to make additions to
the Leased Property, Lessor hereby approves the development,
construction, and operation of an exhibit hall facility and
improvements (the "Exhibit Hall") by Lessee at its sole cost and
expense. The Exhibit Hall is to be located on the first basement
level of the Leased Property. Lessee agrees to submit to Lessor for
its approval, not to be unreasonably withheld, plans and
specifications for the Exhibit Hall which shall describe heating,
ventilation, and air-conditioning equipment; additional electrical
and lighting systems; public restroom facilities; personal property
additions such as movable partitions, removable fixtures, furniture,
and other appropriate equipment; and all other improvements
necessary or appropriate in connection with the development and
operation of the Exhibit Hall. The construction by Lessee of the
Exhibit Hall shall not delay or unreasonably interfere with the
construction by Lessor of the improvements described in the Plans.
After submission of the plans and specifications for the Exhibit
Hall, Lessor, upon its approval thereof, shall issue a notice to
Lessee instructing it to proceed with construction of the Exhibit
Hall and Lessee shall thereafter diligently proceed to and shall
promptly complete the construction thereof. Due to the necessary
sequence of the work, the construction of the Exhibit Hall will
extend beyond the completion of the construction by Lessor of the
Leased Property. Lessee shall not be entitled to any reduction in
the Fixed Minimum Rent as a result of the construction of the
Exhibit Hall, or any part thereof, on those portions of the Leased
Property previously accepted by Lessee. Nothwithstanding anything to
the contrary herein contained, Lessee shall bear and be responsible
for any increase in operating costs and expenses attributable to or
caused by, any additions to the Leased Property; provided, however,
such operating costs and expenses are deductible in the
determination of the Percentage Rent.
16
ARTICLE X
Default and Remedies
10.01 Default. A "Default," as that term is used herein means
the occurrence of one or more of the following events: (a) failure
of Lessee to pay the rent in accordance with the terms of this Lease
and the continuation of such failure without cure for a period of
thirty (30) days after Lessor notifies Lessee and each Mortgagee of
such failure; (b) failure of Lessee to comply with any term,
covenant, or provision of this Lease, other than the covenant to pay
the rent, and the failure by Lessee to commence to cure and to cure
such failure within sixty (60) days after Lessor has notified Lessee
and each Mortgagee of such failure; and (c) provided, however, if
any such failure specified in (b) preceding not be reasonably
susceptible of cure within such sixty (60) day period, the failure
by Lessee to commence to cure any such failure and thereafter to
proceed diliigently to cure and to cure such failure within a
reasonable period of time.
10.02 Remedies After Default. Subject to the rights of any
Mortgagee pursuant to paragraph 6.03, upon the occurrence of a
Default (including the passage of time specified therefor without
cure) , this Lease may be terminated by Lessor, and Lessee shall
forthwith redeliver possession of the Leased Property in the
condition it was delivered to Lessee hereunder (unless modified by
Lessee pursuant to paragraphs 9.02 and 9.03, then in the condition
as so modified) , reasonable wear, depreciation, and tear excepted.
Upon the occurrence of a Default, Lessor shall be entitled to, as
Lessor's sole remedies hereunder, (a) terminate this Lease, (b)
possession of the Leased Property, and (c) payment of all accrued
and unpaid rent due to Lessor as of the date of such termination.
Upon Lessor's electing to terminate this Lease upon a Default) this
Lease shall cease and come to an end as if that were the day
originally fixed herein for the expiration of the term hereof.
1 7
ARTICLE XI
Notices
11.01 Method of Giving Notice. Whenever any notice or demand is
required or permitted hereunder, such notice or demand must be in
writing. Any notice, demand, payment, or document required or
permitted to be delivered hereunder shall be deemed to be delivered,
whether actually received or not, on the third business day after it
is deposited with the United States Postal Service, certified or
registered mail, postage prepaid, addressed to the party who is to
receive it at the address which such party has theretofore specified
by written notice delivered in accordance herewith, and any notice
required to be given to Lessee hereunder shall also be required to
be given to any Mortgagee who has specified an address for the
receipt of notice in accordance herewith. Until changed in
accordance herewith, Lessor and Lessee hereby specify the address
stated for each on the signature page hereof as their respective
addresses for receiving notices, demands, payments, and documents.
Any party entitled to receive notices, demands, payments, and
documents hereunder may change, at any time and from time to time,
by written notice, the address which it had theretofore specified
for receiving the same.
ARTICLE XII
Miscellaneous
12.01 CoTpliance With Laws. The term "Laws" as used herein
shall mean all laws, rules, ordinances, or governmental regulations
of all legally constituted authorities. Both Lessor and Lessee, in
the course of performance of their respective obligations hereunder,
shall comply with all applicable Laws, including, but not limited
to, Laws of Lessor regulating off-street parking facilities.
12.02 Ins actions by Lessorff Lessor and its agents shall have
the right to enter upon the Leased Property at any reasonable time
for the purpose of inspecting the same; provided that: (a) Lessor
must use its best efforts to schedule and complete each inspection
in a manner which avoids substantial interference with Lessee's
18
operations thereof (provided this clause is not intended to limit
the exercise by Lessor of any of its police powers) ; and (b) Lessor
may not place "for lease" or "for sale" signs, or any similar signs,
at the Leased Property or exhibit the Leased Property to prospective
tenants or purchasers, except during the last three (3) months of
the term of this Lease.
12.03 Relationship Between Lessor and Lessee. Nothing herein
contained shall be deemed or construed by the parties hereto, or by
any other person, or by any court or other tribunal, as creating a
relationship of principal and agent, or of partnership, or of joint
venture between the parties hereto, it being understood and agreed
that neither the method of computation of Percentage Rent, nor any
other provision contained herein, nor any acts of the parties
hereto, shall be deemed to create any relationship other than the
relationship of landlord and tenant.
12.04 Number and Gender of Words. Whenever herein the singular
number is used, the same shall include the plural where appropriate,
and words of any gender shall include each other gender where
appropriate.
12.05 Captions. The captions, headings, and arrangements used
in this Lease are for convenience only and do not in any way affect,
limit, or amplify the terms and provisions hereof.
12.06 Waivers and Consents. One or more waivers of any cove-
nant, term, or provision of this Lease by any party shall not be
construed as a waiver of a subsequent breach of the same covenant,
term, or provision, nor shall it be considered a waiver of any other
existing or subsequent breach of a different covenant, term, or
provision. the consent or approval by either party to or of any act
by the other party requiring such consent or approval shall not be
deemed to waive or render unnecessary consent to or approval of any
subsequent similar act.
19
12.07 Force Majeure. Whenever a period of time is herein
prescribed for action to be taken by Lessor, Lessee, or any Mort-
gagee, none of them shall be liable or responsible for, and there
shall be excluded from the computation of any such period, any
delays due to strikes, civil commotion, riots, acts of God, short-
ages of labor or materials, war, governmental Laws or restrictions,
or any other causes of any kind whatsoever (except financial
distress and Laws passed by the City of Fort Worth in order to
directly or indirectly allow Lessor to avoid or delay its
performance of its obligations hereunder) which are reasonably
beyond the control of the party required to take the action.
12.08 Peaceable Possession. Lessor hereby covenants and agrees
that if Lessee performs all of the terms, covenants, and provisions
herein required to be performed by Lessee, Lessee shall , subject to
the terms of this Lease, have the peaceable and quiet enjoyment and
possession of the Leased Property at all times during the
continuance of this Lease.
12.09 Lessor's Warranties of Title and Authority. Lessor
covenants, warrants, and represents that: (a) it is the owner in fee
simple of the Leased Property and has good and marketable title
thereto, subject to no liens, contracts, leases, tenancies,
agreements, exceptions, easements, defects in title, restrictions,
conditions, limitations or encumbrances that would materially affect
Lessee's intended use of the Leased Property as provided herein; and
(b) Lessor has full right and lawful authority and power to execute
this Lease for the term, in the manner, and upon the terms,
covenants, conditions, and provisions herein contained.
12.10 Certificate of Lease Status. Lessee and Lessor shall,
from. time to time, upon request by either or any Mortgagee, execute,
acknowledge, and deliver to the other or to any Mortgagee a
statement in recordable form certifying the existence of this Lease,
and, if true, that this Lease is unmodified and in full forc,4 and
effect with no known Default existing hereunder, or, if there have
been modifications or a Default exists, specifying the modifications
and existing Defaults, and certifying, if true, that this Lease is
20
in full force and effect as so modified and that there are no other
existing known Defaults, and further stating the date to which the
rent and other charges payable under this Lease have been paid.
12.11 'Lessee's Right to Use Public Facilities. Lessee, its
invitees and licensees, without charge or fee except as specifically
provided herein, shall enjoy the general use of all public
facilities and improvements of a public nature which are now or may
hereafter be connected with or appurtenant to the Property. The
right to use such public facilities in common with others authorized
so to do shall be exercised only subject to and in accordance with
applicable Laws of Lessor, and to the same extent as permitted to
members of the general public.
12.12 Binding Effect, The rights and obligations created hereby
shall be binding upon and shall inure to the benefit of Lessor and
Lessee, and their respective successors and assigns, including the
successors in interest of Lessor and Lessee in the event of a
corporate dissolution or liquidation, the sublessees of the Lessee,
and the heirs, executors, administrators and devisees of any natural
person who may derive any rights or obligations, by, through, or
under the Lessor or the Lessee.
12.13 Short Form Lease. Lessor and Lessee, from time to time,
upon request by either party, shall execute, acknowledge, and
deliver to the other party, a Memorandum of Lease in recordable form
certifying the existence of this Lease and setting forth the basic
terms and provisions contained herein.
12.14 UDAG Grant Agreement. Upon approval of this Lease by HUD
under the terms of the UDAG Grant Agreement, Lessor as "Recipient"
under the UDAG Grant Agreement and Lessee as "Participating Party"
thereunder hereby represent and warrant to each other that each
shall comply with the obligations and covenants imposed by the UDAG
Grant Agreement upon each such party, including, but not limited to,
the obligations and covenants set forth in Article IX of the UDAG
Grant Agreement, and all such 6bligation s and covenants are hereby
21
incorporated by reference. Unless specifically provided to the
contrary herein, the covenants, representations, and warranties
imposed upon Lessor and Lessee under the Developer's Contract are
hereby incorporated by reference.
12.15 Non-Discrimination. Lessor and Lessee shall not discrimi-
nate against any person because of race, religion, color, sex, or
national origin and shall comply with all Laws in that regard in
connection with the operation and use of the Leased Property.
EXECUTED at Fort Worth, Texas, this L4_th day of
1980.
ATTEST: LESSOR:
THE CITY OF FORT WORTH
By: Li
I Jack W. Green Robert L. Herchert
City Secretary City Manager
ddb 1000 Throckmorton Street
Fort Worth, Texas 76102
APPROVED AS TO FORM:
ITY TTORNEY
P.
Arthur R"
ATTEST: LESSEE:
HUNT HOTEL/FORT WORTH, LTD.
By: Hunt Investment Corporation
Genera Partner
By:
fAsst.Secretary J hn F. covell
V c President
32 0 First National Bank
Building
Dallas, Texas 75202
APPROVED BY Cl rf COUNCIL
'tY Secretary
Date
22
THE STATE OF TEXAS §
COUNTY OF DALLAS §
BEFORE ME, the undersigned, a Notary Public in and for said
County and State on this day personally appeared JOHN FIELD SCOVELL,
Vice President of HUNT INVESTMENT CORPORATION, A Delaware corpora-
tion and general partner of HUNT HOTEL/FORT WORTH, LTD. , a Texas
limited partnership, known to me to be the person and officer whose
name is subscribed to the foregoing instrument, and acknowledged to
me that the same was the act of the said HUNT INVESTMENT
CORPORATION, as general partner of HUNT HOTEL/FORT WORTH, LTD. , and
that he executed the same as the act of such partnership for the
purposes and consideration therein expressed, and in the capacity
therein stated.
GIVEN UNDER MY HA14D AND SEAL OF OFFICE this the 24t:h day of
Aprjl 1980.
Notary Public LA and for
nallAR County, Texas
�i
SE-ER11Y L. CAFUPIUITHU 3S, NM`f,'rY PL'blic
My Commission Expires: in and for s Ccu;1ty; Texas
Poly Can�ojj sion Lxpir2s J'aly
July '11, 1980
THE STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned, a Notary Public in and for said
County and State on this day personally appeared ROBERT L. HERCHERT,
City Manager of THE CITY OF FORT WORTH, a Texas home-rule municipal
corporation, known to me to be the person and officer whose name is
subscribed to the foregoing instrument, and acknowledged to me that
the same was the act of the said CITY OF FORT WORTH, and that he
executed the same as the act of said corporation and for the
purposes and consideration therein expressed, and in the capacity
therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this the -I&kday of
1980.
Notary Public in and for
Tarrant County, Texas
My Commission Expires:
so
23
EXHIBIT A
TO PARKING GTkffTk(3E LEASE
BETWEEN THE CITY OF FORT WORTH(LESSOR) AND
HUNT HOTEL/FORT WORTH LTD. (LESSEE)
The Property as that term is defined in the above-described lease agreement to
which this Exhibit A is attached is comprised of the following:
(1) The Easterly 1/2 of Block 114 of Original Town of Fort Worth in Tarrant County,
Texas; and embracing Lots 9 through 16 in said Block and the Easterly 1/2 of the
alley adjoining said Lots on the West, and being the three tracts described in the
deeds to the City of Fort Worth recorded in Volume 6892, Page 1350, Volume 6868,
Page 1718, and Volume 6834, Page 2190 of the Tarrant County Deed Records,
described by metes and bounds as follows-.
Beginning at the Southeasterly corner of said Block 114 at the
intersection of the Westerly line of Main Street and the
Northerly line of Ninth Street;
Thence South 60 degrees West, along the Southerly line of said
Block 114 and the said Northerly line of Ninth Street, 100 feet
to a point for corner;
Thence North 30 degrees West, along the middle of said alley,
adjoining Lots 9 through 16 on the West, 200 feet to the
Northerly line of said Block 114 and the Southerly line of
Eighth Street;
Thence North 60 degrees East, along the said Northerly line of
Block 114 and the said Southerly line of Eighth Street, 100
feet to the Northeasterly corner of said Block 114 and the said
Westerly line of Main Street; and
Thence South 30 degrees East, along the Easterly line of said
Block 114 and the said Westerly line of Main Street, 200 feet
to the place of beginning and containing 20,000 square feet,
more or less.
(2) A part of Block 115 of the Original Town of Fort Worth in Tarrant County, Texas
and embracing all of Lots 5, 6, 7, 8, 13, 14, 15 and 16 and a portion of Lots 1, 2, 3
and 4 in said Block, described by metes and bounds as follows:
Beginning at the Northeasterly corner of said Block 115 for
the intersection of the Southerly line of Eighth Street and the
Westerly line of Commerce Street and from which a tack set
in a lead plug bears North 30 degrees West 5 feet and North 60
degrees East 5-4/10 feet;
Thence South 30 degrees East, along the Easterly line of said
Block 115, along the Easterly line of Lots 16, 15, 14 and 13 for
the said Westerly line of Commerce Street, 100 feet to a
galvanized spike for the common East corner of Lots 13 and
12;
Thence South 60 degrees West, along the common line of said
Lots 13 and 12, a distance of 100 feet to a galvanized spike for
the common corner of Lots 4, 5, 12 and 13;
Thence South 30 degrees East, along the common line of said
is 12 and 4, a distance of 9-33/100 feet to a galvanized
spike;
Thence South 60 degrees West 450/100 feet to a galvanized
spike;
Thence South 30 degrees-01 minute-44 seconds East, through
Lots 4, 3, 2 and 1, a distance of 90-67/100 feet to the
Southerly line of Lot 1 and said Block 115 in a Northerly line
of Ninth Street from which a "Y" marked on concrete walk
bears South 30 degrees-01 minute-44 seconds East 3 feet;
Thence South 60 degrees West, along the said Southerly line of
Lot I and Block 115 and the said Northerly line of Ninth
Street, 95-55/100 feet to the Southwesterly corner of said
Block 115 for the intersection of said Northerly line of Ninth
Street and the Easterly line of Main Street from which a tack
set in a lead plug bears South 30 degrees East 3 feet and south
60 degrees West 5 feet;
Thence North 30 degrees West, along the Westerly line of Lots
1 through 8 and the Westerly line of said Block 115 for the said
Easterly line of Main Street, 200 feet to the Northwesterly
comer of said Block 115 for the intersection of the said
Easterly line of Main Street and the said Southerly line of
Eighth Street from which a tack set in a lead plug bears South
60 degrees West 5 feet and North 30 degrees West 5 feet;and
Thence North 60 degrees East, along the Northerly line of Lots
8 and 16 and the Northerly line of said Block 115 for the said
Southerly line of Eighth Street, 200 feet to the place of
beginning and containing 29,594 square feet, more or less.
(3) The subsurface portion of Main Street between Block 114 and Block 115 of the
Original Town of Fort Worth, Tarrant County, Texas, being South of the South
right-of-way line of 8th Street and North of the North right-of-way line of 9th
Street.
0005-0032-005112 2
EXHIBIT B
SCHEDULE OF PAYMENTS
The minimum amount of the Fixed Minimum Rent as determined under clause
( i ) of paragraph 2 .01 of this Lease is as follows (subject to reduction under
paragraph 2.03) :
Lease Year Annual Rental
Initial Commencement Date through December 31 , 1985 $ 60 ,000.00
Jan. 1 , 1986 through December 31 , 1990 $ 65 , 000.00
It 1991 through It 1995 $ 70, 000.00
it 1996 through 2000 $ 75 , 000.00
it - 2001 through 2005 $ 80 , 000.00
fl 2006 through 2010 $ 85 ,000 .00
If 2011 through 2015 $ 90 ,000.00
if 2016 through 2020 $ 95 ,000.00
2021 through 2025 _$100, 000.00
2026 through end of term $105 , 000-00
City of Fort Worth., Texas
Mayor and Council Communication
DATE REFERENCE SUBJECT: Lease of UDAG Parking Garage PAGE
NUMBER
4115/80 C-5057 1 of 2
On May 1, 1979 (M&C G-4150), the City Council authorized an application for
Urban Development Action Grant (UDAG) funds from the U. S. Department of
Housing and Urban Development for acquisition of land and construction of a
public plaza and a two-level subsurface parking garage. As a part of this
application and in conjunction with the provision of the public facilities,
Woodbine Development Corporation, the development entity of Hunt Investment
Corporation, agreed to acquire, renovate, and convert the historic Hotel
Texas into a modern Hyatt Regency Hotel.
The Grant Agreement (B-79-AA-48-0013), executed on September 7, 1979, imposed
several requirements on the City and the developer to strengthen the direct
relationship between the hotel and the public facilities. HUD approved the
grant based on the premise that provision of the public facilities was critical
to the developer's decision to proceed with the adjacent hotel project. As a
prerequisite for final approval of the Grant Agreement, HUD required that the
City and Hunt enter into an Agreement to Lease the parking facility (M&C C-4770) .
The two basic provisions imposed by HUD and included in the Agreement were that
under any lease entered into by the City (1) there be a requirement to supply
parking spaces in a manner, amount, and price acceptable to Hunt Hotel, and
(2) that it include provisions whereby the City receives a minimum annual rent
of at least $60,000 to be escalated every five years by the greater of (a) an
amount based on Consumer Price Index increases or (b) an amount based on 80 per-
cent of net profits from the operation of , the facility.
The final terms and provisions as set out in the proposed lease (attached) for
the parking garage have been agreed to by both parties and by HUD's Action
Grant officials following extensive negotiations. The basic financial provi-
sions are summarized as follows:
Term
Fifty (50) years.
Fixed Minimum Annual Rate
$60,000 during each of the first five years and increased every fifth
year beginning in 1986 by the greater of $5,000 or one-half (12) of the
CPI increase for all Urban Consumers in the Dallas/Fort Worth SMSA.
Percentage Rent
Beginning January 1, 2007, and each year thereafter to the termination
of the lease in year 2031, an annual lease rental equal to the greater
of the Fixed Minimum Rent (as escalated above) or eighty percent (180%)
Of the annual. net profits from the Lessee's operation of the facility.
DATE REFERENCE SUBJECT: Lease of UDAG Parking Garage PAGE
NUMBER
2
4/15/80 C-5057
Manner of Payments
Payable semi-annually, in arrears.
When Percentage Rate exceeds the Fixed Minimum Rent, the difference
will be paid on or before April 15th of the succeeding year.
As a related matter, it is noted that in acquiring land for the UDAG Project,
the City purchased the fee interest in all of Block 115, City Addition, from
the Scott Estate, subject to an existing leasehold interest held by W. A.
Moncrief, Jr. (M&C L-6223, September 25, 1979) . In the settlement negotiations
to acquire the leasehold interests. of Mr. Moncrief in approximately three-
fourths of the block not occupied by the Moncrief Oil Building, the City
granted, as part of the consideration to Mr. Moncrief for his leasehold interest,
the use of twenty-five spaces in the parking facility, Monday through Friday
between the hours of 8:00 A.M. and 6:00 P.M., for a period of 20 years (M&C
L-6295, November 29, 1979) . This part of the compensation for the land subse-
quently has been approved by HUD's UDAG Office. The City will have to rent
these 25 spaces from the Garage Operator at 70% of the average rate charged by
four other specified major downtown garages for equivalent space. The rent
actually will represent a deferred payment on the land acquisition cost, but
the staff proposes that it be treated as an expense item in the annual operat-
ing plan of the Municipal Parking Building Fund. The staff proposes to
execute a contract with the operator of the garage to provide the twenty-five
spaces to be signed simultaneously with execution of the Lease on the facility.
Recommendations
It is recommended that the City Council:
1) Authorize the City Manager to execute a Lease Agreement (Parking
Garage Lease) with Hunt Hotel/Fort Worth, Ltd. containing the
provisions described; and
2) Authorize the City Manager to execute a Contract to Provide Twenty-
five Parking Stalls in the UDAG Parking Garage with Hunt Hotel/
Fort Worth, Ltd. containing the provisions described.
MCM:ms
Attachment
SUBMITTED FOR THE'C_ PROCESSED By
CITY MANAGFR'S DISPOSITION BY COUNCIL�
OFFICE BY: !0 APPROVED
ORIGINATING OTHER (DESCRIBE)
DEPARTMENT HEAD: M. C. Matson CITY SECRETARY
FOR ADDITIONAL INFORMATION DATE
CONTACT: James A. Wilson, ext. 8184