HomeMy WebLinkAboutContract 21757 CJY SECRETA
CONTRACT NO!
RIGHT OF FIRST OPPORTUNITY TO NEGOTIATE A LEASE
This Right of First O portunity to Negotiate a Lease(this "Agreement") is entered into to
be effective as of the day of rI 1 , 1996, by HILLWOOD/2470, LTD., a
Texas limited partnership ("Hillwood"), andl ALLIANCEAIRPORT AUTHORITY, INC., a
Texas non-profit industrial development corporation("Owner").
Owner is the owner of the property situated in Denton County, Texas described in the
attached Exhibit "A" (the "Property"). As part of the transaction pursuant to which Owner
acquired the Property, Owner agreed to grant to Hillwood a right of first opportunity to negotiate
a lease of the Property under certain circumstances.
Federal Express Corporation, a Delaware corporation (("'FedEx"), currently leases the
Property from Owner pursuant to the�i��a[dies dated as�r;1 1 , 1996
(the"FedEx Lease"). 1
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, Hillwood and Owner agree as follows:
1. Subject to the terms and conditions set forth below, following termination or
expiration of the FedEx Lease, in the event Owner desires to lease all or any portion of the
Property other than to FedEx, Owner first shall give Hillwood written notice of such intended
lease (the "Owner's Notice"). The Owner's Notice shall describe generally the terms on which
Owner desires to.lease the Property or portion thereof. If Hillwood desires to enter into
negotiations with Owner to lease the Property or such portion thereof, Hillwood shall deliver
written notice of such desire to the Owner within 15 days after receipt of the Owner's Notice (the
"Hillwood Notice").
(a) Hillwood shall be deemed to have elected not to negotiate to lease the
Property if it does not deliver the Hillwood Notice within the 15-day period referenced
above. If Hillwood elects not to (or is deemed to have elected not to) negotiate to lease
the Property, Owner may lease the Property to others provided that such lease is signed
within 90 days following the expiration of such 15-day period. If Owner has not signed a
lease with a third party within said 90-day period, Owner shall not lease all or any portion
of the Property thereafter other than to FedEx without first again offering to lease the
Property to Hillwood in accordance with this Agreement.
(b) If Hillwood does elect to negotiate to lease the Property by delivering the
Hillwood Notice within the 15-day time period referenced above, Owner and Hillwood,
during the 90-day period following the giving of the Hillwood Notice, shall attempt.to
negotiate a lease of the Property from Owner to Hillwood.
OFFICIAL RECORD
CITY SECRETARY
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FT. WORTH, TEX. 07530.0016:0149138.03
(c) If Hillwood and Owner are unable to negotiate such lease within such 90-
day period, Owner may lease the Property to third parties on economic terms no more
favorable to the tenant than the terms offered to Hillwood; provided, however, if Owner
has not signed a lease with a third party, containing economic terms no more favorable to
the tenant that the terms offered to Hillwood, within 90 days after the expiration of such
90-day period or if Owner desires to lease the Property or a portion thereof on economic
terms more favorable to the tenant than the terms offered to Hillwood, Owner shall not
lease all or any portion of the Property other than to FedEx without first again offering to
lease the Property to Hillwood in accordance with this Agreement (and on such revised
economic terms that are more favorable to the tenant).
2. The illegality, invalidity or unenforceability of any provision of this Agreement
shall not affect the legality, validity or enforceability of any other provision of this Agreement.
3. Any notice to be given herein shall be deemed given upon the date of deposit
thereof in the U.S. Mail, by certified mail, return receipt requested, postage prepaid, addressed to
Owner or Hillwood, as the case may be, at the address set forth herein. Owner or Hillwood may
change its address for notice by giving written notice of such changes to the other party not less
than ten days prior to the effective date of such address change. r
4. This Agreement may not be amended except by written document signed by
Owner and Hillwood, is binding on the parties hereto and their respective successors and assigns
AND SHALL BE GOVERNED BY THE LAWS OF THE STATE OF TEXAS.
5. The prevailing party in any legal proceeding regarding this Agreement shall be
entitled to recover from the other party all reasonable attorneys fees and costs incurred in
connection with such proceeding.
EXECUTED to be effective as of the date and year first written above.
ALLIANCEAIRPORT AUTHORITY, INC.,
a Texas non-profit industrial development corporation
Q
By:
Name: L
Title: 6, e s e it
Address:
1000 Throckmorton
Fort Worth, Texas 76102
Attn: City Manager
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0 753 0.0016:014913 8.03
HILLWOOD/2470, LTD.,
a Texas limited partnership
By: Hillwood Holding Corporation,
a Texas corporation, general partner
Name: �' C
Title: 1�-e-S��R,,,'�
Address:
2421 Westport Parkway, Suite 200
Fort Worth, Texas 76177
Attn: President,Hillwood Development Corporation
STATE OF TEXAS § r
COUNTY OF'TAR §
This ins ent was acknowle ed before me on the I day of April, 1996 by
IC
µ4a GAR-0 C nS-ti? KOS)A UO I— of Hillwood Holding Corporation;
a Texas corporation, general partner of Hillwood/2470, Ltd., a Texas limited partnership, on
behalf of said partnership.
My Commission Expires: Notary Public in Ud for the State of Texas
Printed Name of Notary
KIMBERLY R. PUEBLO
NOTARY PUBLIC
Mate of Texas
Cal^m. UP.07-14.99
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07 5 3 0.0016:014913 8.03
The City of Fort Worth, Texas (the "C "), upon acquiring the Property, agrees to be
bound by the terms of this Agreement, with the term "Owner" then meaning and including the
City.
CITY OF FORT WORTH,TEXAS
By:
Name: m m�
Title: .fir
STATE OF TEXAS §
COUNTY OF �'�'� fi §
Th}s instrument was acknowledged before me on the day of April, 1996 by
tZ ,,� o v �z r ,GC s s �'; G ►-{� a►1 ti� e r of the City of Fort Worth,
Texas., a municipal corporation, op,behalf-of said municipal corporation.
n� �•O�P(L pie<�/�� ,C
My Commission Expires: 's tot ublic in an or the State of Texas
a
IPA,r .�•• ®® X14' ( %�Z°
�66Q°° 9R29 ®e°° Printed Name of Notary
�eeeeeeee��®
STATE OF TEXAS §
COUNTY OF
This instrument was d before m n the acknowledged ot L a-v� � �g � s , � G��--- � day of April, 1996 by
�
of AllianceAirport Authority,
Inc., a Texas non-profit industrial development corporation, on behalf of said corporation.
My Commission Expires: Notary 6klic in and f the State of Texas
KAY WOOLEY KtL, Woole-"
� NOTARY PUBLIC rimed Na e of Notary
STATE OF TEXAS
EXHIBITS: '' My Comm.e"P.6.17.98
A- Property Description
-4-
07530.0016:014913 8.03
EXHIBIT"A"
LEGAL DESCRIPTION
BEING A TRACT OF LAND SITUATED IN THE G. OVERTON SURVEY, ABSTRACT
NO. 972, THE E.B. PETERS SURVEY, ABSTRACT NO. 1626, THE A. MCDONALD
SURVEY ABSTRACT NO. 786,AND THE J. EVANS SURVEY,ABSTRACT NO. 396,IN
DENTON COUNTY, TEXAS; AND BEING ALL OF THAT CERTAIN 158.00 ACRE
TRACT OF LAND DESCRIBED IN DEED TO FEDERAL EXPRESS CORPORATION,
FILED BY CLERKS FILE NO. 94-R0034691,MAP RECORDS OF DENTON COUNTY,
TEXAS TOGETHER WITH A PART OF THAT CERTAIN TRACT OF LAND
DESCRIBED IN DEED TO ALLIANCE AIRPORT LTD., RECORDED IN VOLUME
2451, PAGE 412, REAL RECORDS OF DENTON COUNTY TEXAS; SAID TRACT
BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS
FOLLOWS:
COMMENCING AT A I INCH STEEL ROD ON THE WEST LINE OF SAID
ALLIANCE AIRPORT TRACT, BEING THE SOUTHWEST CORNER OF LOT 1,
BLOCK I AMERICAN AIRLINES AFW MAINTENANCE BASE, RECORDED IN
CABINET H, PAGE 309, PLAT RECORDS OF DENTON COUNTY, TEXAS AND
CABINET A, SLIDE 593, PLAT RECORDS OF TARRANT COUNTY, TEXAS; SAID
ROD ALSO BEING THE MOST WESTERLY NORTHWEST CORNER OF TAXIWAY
H, AS DESCRIBED IN DEED TO THE CITY OF FORT WORTH, RECORDED IN
VOLUME 2931,PAGE 213,REAL RECORDS OF DENTON COUNTY,TEXAS;
THENCE SOUTH 09053'13" EAST, WITH THE WEST LINE OF SAID ALLIANCE
AIRPORT TRACT, AND THE WEST END OF TAXIWAY H, A DISTANCE OF 299.79
FEET TO A "+" CUT IN CONCRETE,BEING THE NORTHWEST CORNER OF SAID
FEDERAL EXPRESS TRACT AND THE POINT OF BEGINNING OF THIS TRACT
HEREIN DESCRIBED.
THENCE NORTH 80006'47" EAST, WITH A SOUTH LINE OF TAXIWAY H, A
DISTANCE OF 2657.33 FEET TO A RAILROAD SPIKE IN.CONCRETE AT A FENCE
POST,THE NORTHEAST CORNER OF SAID FEDERAL EXPRESS TRACT;
THENCE SOUTH 09053'13" EAST WITH THE EAST LINE OF SAID FEDERAL
EXPRESS TRACT, A DISTANCE OF 1390.00 FEET TO A 5/8 INCH CARTER &
BURGESS CAPPED STEEL ROD.
THENCE NORTH 80006'47" EAST, A DISTANCE OF 385.29 FEET TO A 5/8 INCH
CARTER&BURGESS CAPPED STEEL ROD.
THENCE SOUTH 09053'13" EAST, A DISTANCE OF 1132.00 FEET TO A 5/8 INCH
CARTER&BURGESS CAPPED STEEL ROD.
THENCE SOUTH 80006'47" WEST, A DISTANCE OF 269.78 FEET TO A 8/8 INCH
CARTER& BURGESS CAPPED STEEL ROD,AT THE BEGINNING OF A CURVE TO
THE RIGHT WHOSE RADIUS IS 166.00 AND WHOSE CHORD BEARS NORTH
77050'23" SECONDS WEST, 124.62 FEET.
A-1
THENCE IN A WESTERLY DIRECTION WITH SAID CURVE THROUGH A
CENTRAL ANGLE OF 44 005'40", A DISTANCE OF 127.75 FEET TO A 5/8 INCH
CARTER & BURGESS CAPPED STEEL ROD ON THE EAST LINE OF SAID
FEDERAL EXPRESS TRACT.
THENCE SOUTH 09053'13" EAST, WITH SAID EAST LINE A DISTANCE OF 84.28
FEET TO A 5/8 INCH CARTER & BURGESS CAPPED STEEL ROD LYING IN A
CURVE TO THE LEFT WHOSE RADIUS IS 234.00 FEET AND WHOSE CHORD
BEARS SOUTH 85 005'50" EAST, 119.47 FEET;
THENCE IN AN EASTERLY DIRECTION WITH SAID CURVE THROUGH A
CENTRAL ANGLE OF 29 034'47", A DISTANCE OF 120.81 FEET TO A 5/8 INCH
CAPPED CARTER&BURGESS STEEL ROD.
THENCE SOUTH 80 006'47" WEST,PASSING AT A DISTANCE OF 115.51 FEET, A 5/8
INCH CARTER & BURGESS CAPPED STEEL ROD BEING THE SOUTHEAST
CORNER OF SAID FEDERAL EXPRESS TRACT, CONTINUING WITH ITS SOUTH
LINE IN ALL A DISTANCE OF 2772.84 FEET TO A 5/8 INCH CARTER & BURGESS
CAPPED STEEL ROD FOR THE SOUTHWEST CORNER OF SAID FEDERAL
EXPRESS TRACT, ON THE WEST LINE OF THE BEFORE MENTIONED ALLIANCE
AIRPORT TRACT; }
THENCE NORTH 09 053'13" WEST WITH THE WEST LINE OF SAID ALLIANCE
AIRPORT TRACT, AND THE WEST LINE OF SAID FEDERAL EXPRESS TRACT, A
DISTANCE OF 2590.00 FEET TO THE POINT OF BEGINNING AND EMBRACING
7,318,088 SQUARE FEET,OR 168.00 ACRES OF LAND.
A-2
b ;
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RESOLUTION AUTHORIZING THE EXECUTION OF AN OPERATING AGREEMENT
AND AN ASSUMPTION AND ASSIGNMENT AGREEMENT .
WITH RESPECT TO THE FACILITIES FINANCED BY THE ALLIANCEAIRPORT
AUTHORITY, INC. FOR USE BY FEDERAL EXPRESS CORPORATION
WHEREAS, AllianceAirport Authority, Inc. (the "Authority") is a nonstock, nonprofit
industrial development corporation organized and existing under the laws of the State of Texas,
including particularly the Development Corporation Act of 1979, Article 5190.6, V.A.T.C.S., as
amended (the "Act"), with the power and authority to exercise all rights, privileges and functions
essential to the accomplishment of the purposes for which it was organized;
WHEREAS, the Authority is a duly constituted public instrumentality of the City of Fort
Worth, Texas(the "City"), a political subdivision of the State of Texas, within the meanings of the
regulations of the United States Treasury Department and the rulings of the Internal Revenue Service
prescribed and promulgated pursuant to section 103 of the Internal Revenuq Code of 1986; as
amended (the "Code"), and the Authority is functioning and acting solely on behalf of the City;
WHEREAS,Federal Express Corporation (the "Company") and the Authority have agreed
to execute and deliver a Land and Special Facilities Lease Agreement dated as of April 1, 1996 (the
"Facilities Agreement"), with respect to the acquisition, construction, equipping and furnishing of
an express cargo package sorting and distribution facility at Alliance Airport within the boundaries
of the City;
WHEREAS, the Authority will issue bonds in an amount net to exceed $250,000,000 to
finance the "Costs" of said facility, as described in-the Facilities Agreement, pursuant to the terms of
a Trust Indenture dated as of April 1, 1996 (the "Indenture") between the Authority and The First
National Bank of Chicago;
WHEREAS, the City and the Company desire to enter into an agreement describing the
conditions relating to the use of Alliance Airport by the Company;
WHEREAS, the Company has requested that upon the acquisition of the land upon which
said facility is being constructed, and improvements heretofore constructed thereon, by the Authority
from the Company, the Authority transfer title to said land and improvements to the City; and
WHEREAS, it is deemed necessary and advisable that this Resolution be adopted.
THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT
WORTH THAT:
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Section 1. The execution by the City Manager of the Operating Agreement(the "Operating
Agreement") by and between the Company and the City in substantially the form and substance as
attached to this Resolution and made a part hereof for all purposes, is hereby approved.
Section 2. The execution by the City Manager of the "Assumption and Assignment of
Facilities Agreement and Agreement for Donation and Assignment of Purchased Items" (the
"Assumption and Assignment Agreement"), between the Authority and the City, and consented to
by the Company, in substantially the form and substance as attached to this Resolution and made a
part hereof for all purposes,is hereby approved.
Section 3. The City Manager,any Assistant City Manager, and the City Attorney are hereby
authorized to execute and deliver such other instruments, certificates, documents or papers and to
take such further action and perform such other duties as,such officers may deem advisable or
appropriate to carry out the intent of the foregoing sections of this Resolution, or to consummate any
of the matters or transactions referred to in or contemplated by the Assignment and Assumption
Agreement described'in Section 2 hereof.
ADOPTED THIS2,0��DAY OF W,, 1996.
M
or Pro-Tem, City of Fort Worth
ATTEST:
City Secretary
(SEAL)
APPROVED AS TO FORM:
City Attorney
APPROVED
CITY COUNCIL.
t"AR 26 1906
City Samet"y of the
-2- City of Fort W arth,Texas
• b � N t
RESOLUTION APPROVING A RESOLUTION OF AJ3
ALLIANCEAMPORT AUTHORITY,INC.
WITH RESPECT TO THE ISSUANCE OF BONDS FOR
FEDERAL EXPRESS CORPORATION
WHEREAS,AllianceAirport Authority,Inc.(the"Authority")was created under the auspices of the City
of Fort Worth(the"City")pursuant to Article 5190.6,V.A.T.C.S. (the"Act");
WHEREAS,notice of a public hearing on the Special Facilities(as defined in the Facilities Agreement
attached hereto),as required by Section 147 of the Internal Revenue Code of 1986,as amended(the"Code"),was
published in a newspaper of general circulation in the City at least 14 days prior to such public hearing;
WHEREAS,Federal Express Corporation(the"Company")has requested that the Authority issue
its AlhanceAirport Authority,Inc. Special Facilities Revenue Bonds,Series 1996(Federal Express Corporation
Project)(the"Bonds")in the aggregate principal amount not to exceed$250,000,000;
}
WHEREAS, the Authority has been requested to issue the Bonds for the purpose of financing the
acquisition,construction,equipping and fiunishing,for use by the Company,of an express cargo package sorting
and distribution facility (the "Special Facilities") located in the City at the Airport, which constitutes a
S transportation facility within the meaning of the Act;
t
WHEREAS,the Authority has agreed to lease the Special Facilities to the Company in accordance with
the terms of a Land and Special Facilities Lease Agreement dated as of April 1, 1996 (the "Facilities
Agreement'),to be entered into by the Authority and the Company;
WHEREAS,the Bonds are to be issued under and secured by a Trust Indenture dated as of April 1, 1996
(the "Indenture") between the Authority and The First National Bank of Chicago, Chicago, Illinois (the
"Trustee");
WHEREAS, the Company will execute a Guaranty, dated as of April 1, 1996, to provide for an
unconditional guarantee of the payment of the principal of,premium,if any,and interest on the Bonds;
WHEREAS,the Bonds are to be issued and delivered pursuant to this Resolution,the Indenture and
applicable laws,including the Act and Article 717k-8,V.A.T.C.S.;
WHEREAS,the Company has agreed in the Facilities Agreement that it will be unconditionally obligated
to make or pay,or cause to be made or paid,to the Trustee certain payments in amounts sufficient to pay and
redeem, and provide for the payment and redemption of,the principal of,premium,if any, and interest on the
Bonds(the"Special Facilities Rentals");
WHEREAS, as security for the payment of the Bonds, the Authority shall assign its right, title and
interest in and to the Special Facilities Rentals to the Trustee as part of the Trust Estate;
I WHEREAS,it is deemed necessary and advisable that this Resolution be adopted; and
WHEREAS,the terms and conditions in this Resolution shall have the same meanings as defined in the
Facilities Agreement,unless the context or use herein indicates another meaning or intent.
THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH
THAT:
Section 1. The Facilities Agreement by and between the Authority and the Company in substantially
the form and substance as attached to this resolution and made a part hereof fof all purposes,is hereby approved,
and revenue bonds in the principal amount not to exceed$250,000,000(the"Bonds"),may be issued for the
purpose of paying the cost of acquiring, constructing, equipping and furnishing or causing to be acquired,
constructed,equipped and furnished the Special Facilities,which Special Facilities are in compliance with the
Development Corporation Act of 1979, as amended, and the rules promulgated thereunder by the Texas
Department of Commerce; and said Special Facilities are hereby approved.
Section 2. The Indenture by and between the Authority and the Trustee in substantially the form and
substance as attached to this Resolution and made a part hereof for all purposes,is hereby approved.
Section 3. The resolution adopted by the Authority authorizing the execution of the Facilities Agreement,
the Underwriting Agreement by and between the Authority and the underwriters named therein,the Indenture and
authorizing the sale of the Bonds and the use of a Preliminary Official Statement and are Official Statement in
connection with the sale of the Bonds, in substantially the form and substance attached to this Resolution and
made a part hereof for all purposes,is hereby specifically approved,and the Bonds may be issued as provided
for therein.
Section 4. The City Council of the City of Fort Worth hereby authorizes the Mayor Pro-Tem to approve
the issuance of the aforesaid Bonds in the principal amount not to exceed$250,000,000 for the Company, and
such approval shall be solely for the purposes of Section 147 of the Code,as amended,and the City shall have
no liabilities for the payment of the Bonds nor shall any of its assets be pledged to the payment of the Bonds; and
by executing the Certificate page accompanying this Resolution, the Mayor Pro-Tem thereby evidences the
approval of the Bonds for the limited purposes described in Section 147 of the Code.
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ADOPTED THIO�1 DAY OF fish�A--, 1996.
ay Pro-Tem,City of Fort Worth
ATTEST:
City Secretary
(SEAL)
APPROVED AS TO FORM:
At—� c
City Attorney
CI T Y 4,rOUNCL
MM 2f 1996
the
vF+nt�teast�e,Tex"
-3-
City U . of Fort Worth, Texas
Mayor and Council Comm. unication
DATE 03/26/96 1 REFERENCE NUMBER C-15358 I LOG NAME 02FEDEXP I PAGE 1 of 2
SUBJECT ADOPTING TWO RESOLUTIONS RELATING TO THE FEDERAL EXPRESS PROJECT AT
ALLIANCE AIRPORT, AND AUTHORIZING THE CITY MANAGER TO EXECUTE
SECOND AMENDMENT TO MANAGEMENT AGREEMENT WITH ALLIANCE AIR
SERVICES, INC. AND APPROVING THE ASSUMPTION OF RIGHT OF FIRST
OPPORTUNITY TO NEGOTIATE A LEASE WITH HILLWOOD/2470 LTD.
RECOMMENDATION:
It is recommended that the City Council:
1 . Adopt the attached "Resolution Approving a Resolution of AllianceAirport Authority, Inc.
with Respect to the Issuance of Bonds for Federal Express Corporation" (The First
Resolution), and
2. Adopt the attached "Resolution Authorizing the Execution of an Operating Agreement and
an Assumption and Assignment Agreement with Respect to the Facilities Financed by the
AllianceAirport: Authority, Inc. for Use 'by Federal Express Corporation" (The Second
Resolution), and
3. Authorize the City Manager to execute the "Second Amendment to Management
Agreemeht" with Alliance Air Services, and
4. Authorize the City Manager to approve the assumption of "Right of First Opportunity to
Negotiate a Lease" for Hillwood/2470 Ltd. at Alliance Airport.
DISCUSSION:
The City Council, on April 11, 1995, approved Resolution No. 2055 "Resolution Authorizing The
City Manager to Proceed With Design Phase of Alliance Airport Improvements - Federal Express
Southwest Hub." This Resolution stated the City's commitment to the completion of the Federal
Express project and directed the City Manager to communicate to Federal Express officials the
City's actions to ensure that the required improvements on the airport are constructed within the
desired schedule. On November 21, 1995, the City Council approved M&C G-11309 which
authorized the City Manager to submit to the Federal Aviation Administration an amendment to
the Alliance Airport Layout Plan. The amendment would include the Federal Express site in the
airport boundary and would increase the size of the airport.
The desired goal for the Federal Express project is to have the City own the land, improvements,
and equipment purchased with revenue from the sale of bonds issued by the AllianceAirport
Authority and to lease the land, improvements, and equipment to Federal Express. To
accomplish this goal, several documents have to be approved by both the AllianceAirport
Authority and the City Council. This M&C recommends approval by the City Council of the
appropriate documents.
Printed on Recycled Paper
C-1-ty ®f Fort Worth., Texas
Mayor and Council Communication
DATE REFERENCE NUMBER LOG NAME PAGE
03/26/96 1 C-15358 1 02FEDEXP 1 2 of 2
SUBJECT ADOPTING TWO RESOLUTIONS RELATING TO THE FEDERAL EXPRESS PROJECT AT
ALLIANCE AIRPORT, AND AUTHORIZING THE CITY MANAGER TO EXECUTE
SECOND AMENDMENT TO MANAGEMENT AGREEMENT WITH ALLIANCE AIR
SERVICES, INC. AND APPROVING THE ASSUMPTION OF RIGHT OF FIRST
OPPORTUNITY TO NEGOTIATE A LEASE WITH HILLWOOD/2470 LTD.
The First Resolution in this M&C approves a Resolution of AllianceAirport Authority authorizing
the issuance of AllianceAirport Authority bonds in the principal amount not to exceed
$250,000,000.00 for the Federal Express project.
The Second Resolution authorizes the City Manager to execute the "Operating Agreement" with
Federal Express and the "Assumption and Assignment of Facilities Agreement and Agreement
for Donation and Assignment of Purchased Items" (Assumption and Assignment Agreement).
The Operating Agreement between the City and Federal Express authorizes Federal Express to
use the public areas of the airport and sets the landing fees. By the Assumption and Assignment
Agreement, the City accepts title to the land',"improvements, and equipment of the Federal
Express project and assumes the "Land and Special Facilities Lease Agreement".
The "Second Amendment to Management Agreement" allows for the Federal Express project
tract to be included in the management agreement with Alliance Air Services, Inc. The
amendment also defines the Airport Manager's responsibilities .for the project tract. The
amendment provides that the lease payments from Federal Express will not be airport revenue
under the management agreement.
The "Right of First Opportunity to Negotiate a Lease" grants Hillwood the first opportunity to
negotiate a lease of the property when the property is no longer leased to Federal Express.
FISCAL INFORMATION/CERTIFICATION:
The Director of Fiscal Services certifies that the approval of this M&C does not obligate the City
to expend any City funds.
BT:a
Submitted for City Manager's FUND F-ACCOUNT CENTER AMOUNT CITY SECRETARY
Office by: (to)
Ramon Guajardo 6191
Originating Department Head:
Ramon Guajardo 6191 (from)
For Additional Information
Contact:
Ramon Guajardo 6191
Printed on Recycled Paper