HomeMy WebLinkAboutContract 17327 AMENDMENT TO CITY SECRETARY CONTRACT NO. 8938
THE STATE OF TEXAS § Ge ITY SECRETAFRY
COUNTY OF TARRANT § CONTRACT M01232
WHEREAS, the City of Fort Worth and Don E. Hansen have entered
into that certain Agreement identified as City Secretary Contract
No. 8938 for a period beginning September 1, 1976, and ending
August 31, 2006, with an option to renew for two, successive five
year terms.
WHEREAS, City Secretary Contract No. 8938 has been previously
amended by City Secretary Contract No. 9123 , without, however,
changing the term of the Contract;
NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS:
That the City of Fort Worth, a municipal corporation, acting
herein by and through David Ivory, its duly authorized Assistant
City Manager, and Don E. Hansen, do hereby covenant and agree as
follows :
1.
City Secretary Contract No. 8938, as amended, currently on
file in the office of the City Secretary of the City of Fort Worth,
is hereby amended by changing Article IV A, "Term" , thereof to read
as follows:
"The term of this lease shall begin September 1, 1976, and
shall end May 31, 2016. "
2.
City Secretary Contract No. 8938, as amended, is further
amended by changing Article V B, "Adjustment of Rentals" to read
OFFICIAL RECORD
CITY, SEMETARY
FT. 'WORTH, TEX.
as follows:
"Upon written notice from Lessor to Lessee delivered within
thirty days prior to October 1, 1991, and upon written notice
delivered within thirty days prior to the end of each five (5) year
period thereafter during the term of this Lease, Lessor shall have
the right but not the duty to adjust the ground rental payable
hereunder to conform same to rentals then prevailing at the airport
for comparable ground space, said increase not to exceed ten
percent (10%) of the amount theretofore payable. "
3 .
All other terms, provisions, conditions , covenants and
recitals of said City Secretary Contract No. 8932 , as amended,
which are not expressly amended herein shall remain in full force
and effect during the term hereof .
IN WITNESS WHEREOF, the parties hereto have executed this
agreement in multiples in Fort Worth, Tarrant County, Texas, this
day of A.D. 1989.
CITY FORT WORTH DON E. HANSEN
B
Assistant dity Vpager
ATTEST: ATTEST:
-&1�t,fsecretary Notary Public
APP_7 AS TO FORM AND LEGALITY:
e7l-
Civy—Attor�n y Date:
Contract Authorikation
7
Date
City of Fort Worth, Texas
Mayor and Council Communication,
DATE REFERENCE SUBJECT: REQUEST FOR EARLY EXERCISE OF PAGE
NUMBER TWO FIVE-YEAR LEASE OPTIONS AND AMEND- 2
7/6/89 **C-11747 MENT OF LEASES - DON E. HANSEN - FORT 1 °f
WORTH MEACHAM AIRPORT
RECOMMENDATION:
It is recommended that City Council authorize the City Manager to execute an
agreement for early exercise of two five-year lease options and amendment of
leases with Don E. Hansen under terms referenced below.
i
DISCUSSION:
Under the City Secretary Contract numbers referenced below, as amended and
assigned, Don E. Hansen leases over 800,000 square feet of unimproved land on
which he has built various hangar, restaurant, and motel improvements. The
various contracts and their expiration dates, not including the option to
renew for two five-year periods, are as follows:
City Secretary Contract No. Expiration
7920 7/31/04
8180 9/30/02
8181 9/30/02
8481 5/31/06
8892 5/31/06
11967 7/31/11
13197 5/31/06
8938 & 9123 8/31/06.
The lease on which the restaurant is located contains a clause in which Mr.
Hansen agrees ,to._p.4y to the City 1% of gross receipts on all amounts in
excess of `$50•,-D00�`per month. That consideration is for the privilege of
operating ea ';rest:aurant and selling food and alcoholic beverages on the
premises . Records provided to the City by Mr. Hansen indicate that gross
receipts have not been in excess of $50,000 per month in any month.
Mr. Hansen tnow requests early exercise of the two five-year lease option
provisions contained =iri the leases . Additionally, he has offered to amend
the terms of_.City'•Seicretary Contract Number 7920 to include payment to the
City of 1:5%-of--gross--receipts from the motel operation beginning with and
continuing �through. t'he two five-year option periods contained in each
contract. This commission is proposed to be paid in addition to the ground
rental rates which will be adjusted in the same manner as they are stated in
the various leases.
Based on current projection, it is estimated that these lease amendments
would generate over $15,000 in additional revenue annually during the option
period. To simplify lease administration, a common contract expiration date
of 5/31/06 is recommended.
i
9
DATE REFERENCE SUBJECT: REQUEST FOR EARLY EXERCIS E OF PAGE
NUMBER
TWO FIVE-YEAR LEASE OPTIONS AND AMEND- 2 2
of
7/6/89 **C-11747 MENT OF LEASES - DON E. HANsFN - FnRT
WORTH MEACHAM AIRPORT
It should be noted that Mr. Han sen Is request establishes a precedent for
renegotiating an extended primary lease terms . Established policy normally
sets a higher hangar rental rate at the end of the primary lease term as
opposed to the lower ground rental rate in effect during the amortization
period. This request delays the application of the higher hangar rental rate.
Additionally, Mr. Hansen is delinquent on rentals -owed the City in the amount
of approximately $20,000. He has agreed to bring the account current within
120 days.
At its meeting on June 15, 1989, the Aviation Advisory Board unanimously
recommended City Council approval of the agreement.
APPROVED By
C" COUNCIL
JUL 6 1989
City secretam of the
City of Fort Worth,TeXM
SUBMITTED FOR THE
CITY MANAGER'S DISPOSITION BY,COUNCIL: PROCESSED BY
I
OFFICE BY: David TVor-y 0 APPROVED
ORIGINATING [3 OTHER (DESCRIBE)
DEPARTMENT HEAD: TkP THompson CITY SECRETARY_
FOR ADDITIONAL INFORMATION
CONTACT: Scott 624-1127 DATE