HomeMy WebLinkAboutContract 28384�
�IiY S��R�A�Y
��N��ACT' i�0 � �� V
FORT WQRTH MEACHAM INTERNATIONAL AIRPORT
HANGAR LEASE AGREEMENT
(HANGAR 1.11�
This GROUND LEASE AGREEli�IENT ("Lease") is made and entered ir�to by and
between the CTTY QF FORT WORTH {��L�ssor"), a ho�ne rule murzicipal corporation organized
under the laws of the State af Texas, acting by and through Marc Ott, its duly authorized Assistant
City Man�ager, and STERLING-FORT WORTH ,� C, L,P. ("Lessee"}, a Texas �united
partnership acting by and thxough R.F. Bearden, President af Sierling REIT, Inc., a Texas
carporatzon and Lessee's sole Genera� Partner.
Reci#aIs
The fallowing stai�ments are true and corr�ct and form the basis upon which Lessar and
Lessee have enter�d into t1�is Lease. �
A. Lessor and Performance Airways, Inc. d/b/a Staci's �et Center pr�viously entexed
inio City S�cretaxy Con�ract ("CSC") No. 19775, as amended by CSC No. 24131, a lease nf certain
�mirr,praved propez�,y at Fort Worth Meacham International Airpart ("Airport"} known as the
Hangar 11N Iease site {coilectively, the "Previous Lease"}. Lessor cons�nted to the assignmen� of
tY�e Previous Lease (i) by Performanc� Airways, Inc. #o Fort 'GVorth Jet C�nter, Inc, uu�der CSC No.
21212; and (ii) by Fort Worth 7et Center, Inc, to Lessee under CSC No. 27508. The Previous Lease
comm�nced on or abaut �ebruaty 1, 1993 and, as amended in accordance with Lessor's then
existing policies, was to expire on September 30, 2011, unless renewed by L�ssee in accordance
with the Previous Lease for ane additianal five (5)-year term.
B. Lessee now wishes to reorganize its financing an all improvemcnts owned by
Lessee on Lessec's Airpo:rt leasehold by entering into a new laan with anoiher Iending institution
and executing new deed of t�.tst lien agreements with that ins�itution. In order to amortize this new
loan, Less�e has requested that the initial term af aIl of Lessee's leases at the Aiipart be extended to
expira in thi.riy (30} years, or 2032.
C. Lessar's published 1Vlinirnum Standards for Fixed Base Operators and Other
Airport T'enants (the "1Vlinimum Standards"} prohibit the lease of property owned by Lessor for
itutial terms greater than thirty (30) years with �ro renewal options �or terms o� five (5) years each.
As a resuli, the initial terxn of the Previous Lease cannot be amended to expira in 2032 because
such act�on would result in an aggregate initzal term in excess of thirty (30} years. Therefore,
Lessor and Lessee have agreed to ternsinate the Previons Lease a�d to �;nter into a new lease of the
same property �or an initial term of approximately, but not more than, thirty (30) years,
Har►gar 11N Lease Agreement with
Steriing k'ort Worth ] C, L.P.
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Agreement
In consideration of the mutual covenants, promises and obligatians cantained herein, Lessor
and Lessee agree as follows:
1. TERMMINATION OF PREVIUUS LEASE.
The Previous Lease is hereby tern�inated contemporaneo�sly with the execution of this
Lease. However, such terminatioa shall not constitute {i) a releass by one party of any liability
accruin� or obligation to indemnify under th� Previous Lease or (ii) a waiver of one party to
enforc� any unparfozrned duiies or obligations of the other under the Previous Lease. Lessee's
abligations to Lessor under Section 2d of CSC No. 19775 sha11 specifically, hut without lirnitation,
�urvive termination of the Previaus Lease.
2. PROPERTY LEASED. �
Lessor hereby demises and �eases to Lessee the following real property at the Aixport
{collectively, the "Premises"):
2.1. 32,380.5$ square feet o£hangar space lmown as Hangar 11N; and
2.2. 75,722.q�1 square feet of improved land lrnown; and
2.3. 11,796.76 square feet of ut�itnpraved Iand.
The Prernises are depicted in the map attached hereto as Exhibit "A" and described in the field
notes attached hereto as Exhibft "B", bo� of which exhibits ar� hereby made a part oi this Lease
far all purposes.
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The "Term" o�this Lease sha11 commence on the da#e of its execution ("Effec�ive Date")
and expire at 11:59 P.M. on July 31, 2032, unless terminated earlier as provided herein. If Lessee
halds aver after the expiration v£ the Term, �his action wzll create a month-to-mon�i tenancy. �ii
this event, far and during the �ioldave:r period, Lessee agree� to pay al1 applicable renfals, fses and
charges at tha ratas provided by the Schedule of Rates and Charges ar similarly published schedule
in effect at the time.
Hangar 11N Lease Agreement witti 2
5terling-Fort Worth J C, L.P.
4. RENT.
�.1. Xn,xt�al Monthly Rent for Premiseso
�ub�ect to Sectian �.4, Lessee's rent for the Premises throughout the Term sha11 be
based on rates prescribed by Lessox's pul�lished Schedule of Rates and Charges ar successor
schedule (the "Sc�eedule �f Rates and Charges") in accordance with the square footage of
hangar space, improved land ar�d unimproved land comprising the Premises. Therefore,
from the Effective Date af this Lease until Sept�mber 34, 2002, Lessee shaIl pay monthly
rent for the Prernises based. on an annual rat� of (i) $1.42 per square foot for 32,380.58
square feet of hangar space; (u) $0.23 p�r square �oot for 75,722.41 square feet of improved
land; and (iii) $0.20 per �qua�e foot for i 1,796.76 square feet of ununproved land, or,
collectively, $5,479.65 per month.
4.�. Annual Ad.l�stments.
On October 1, 2002 and on October 1 of each year thereafter during the Term,
Lessee's ren#al rates shall be subject to increase by Lessor to reflect th� upward percentage
change, if any, in ihe Consumer Price Ind.ex for the Dallas/Fort Worth Metropolitan Area,
as annou�ced by th� United States Department of Labor or successor index and/or agency
during the irnmediately prec�ding twelve-�:nonth period (��CPY Change"} {i), far the first
increase, since the Effectiva Dai� of this Lease and (ii) for each subsequent increase, s�ince
�lie effective date vf the last increase ("Annual, Rent Adjustment"}; provid�d, howeve:r,
that Lessee's rental ratas for the Pr�mises sha.� not exceed the then-current rates prescribed
by t1�e Schedule of Rates and Charges �or hangax space, improved and iuumproved land at
the Aaxpnrt, If there is no CPI Change o;r the CPI Change is downward, the rental. rate for
the Premises shall remain constant until the following October 1st. In no �vent sba�l tk�e
rental rate fax the Premises ever be adjusted downwa,rd.
�.3. Five-Yeax Adj�stments.
In adclition to the Annual Rent Adjus%nents, on October 1, 2012, and every five (5)
years thereafter for the remainder o� the Tenm {z.e. on Octaber 1 af 2017, 2022 and 2027),
xent for the Premises shall automatically be adjusted to equal the then-cuu��rrea�t rates
prescribed hy the Sched.ul� o� Rates and Charges for hangar space, i.mproved land and
unimproved land �.t the Aitport.
�.�. Rent Credit.
Lessee's monthly rent paymen�s from th� Effective Date through the August 2005
rent payment shall be reduced by th� sum of Five Hundred Ninety-six and $9/10Q Do�lars
($546.89) as part of a rent crecli.t originally granted �ander CSC No. 24I31 in order to
reimburse Lessee far $50,139.22 in roof repairs to Hangar 11N (the ��Rent Cxedit"). Tkxis
Rent Credit is the only manner in which Lessec may be reimbursed by Lessor for such rqof
Hangar 11N Lease Agreament wiih
Sterling-Fort Worth 7 C, L.P.
xepaixs. Lessee ac�owledges tl�af it received its Rent Credit �ach month unde:r the
Previous Lease beginning in August 1998 through th� last rent paymenfi made uxider the
Previous Lease and here�hy releases and forever discharge� Lessor from any ol�ligations to
pay any Rent Credits far such months. In the event that this Lease is terrrii�ated prior to
Augus� f, 2005, Lessee agrees that, a� of the effective date of termination, Lessee shall
waive all rights to the Rent Gredit and Lessor wi11 not have any further obligatian with
regard to the Rent Credit or any other form of xeambursement for roaf repairs to Hangar
11N made by or on behalf of Lessee. B�ginning with �e �eptember 2005 rent payment,
Less� sha]� pay fu11 rent for the Pr�mises in accordance with tlus Section 4.
4.5. Pa_yment Dates and La�e Fees.
Monttily rent payments are due on ar b�fore th� first (lst} day nf each man�li.
Payments must �be received during normal working hours Uy ihe due date at the location far
Lessor's Revenuc Office set £arth in Sectian 17. Rent shall be c�nsidered past due if Lessor
has not received full paymerrt after the tenth {lOth) day of the month for which payment is
due. Without Iimiting Lessor's termination rights as provided by this Lease, Lessor will
assess a late penalty charge of #en percent {10%) per month on the entire balance af any
overdue rent that Lessee may accrtte.
�. UTILITIES.
Lessee, at L�ssee's sole cast and expense, shall be responsible �or the installa�ion and use of
a11 utilities service to all portions of the Premises and for a11 other related utilities exper�ses,
including, but not limited to, deposits and expenses req�irad far the installation of ineters. Lessee
iurther covenants and agrees to pay a11 cosis and expens�s ��r any extension, installa�ion,
maintenance or r�pair oi any and aIl utilities ser�ing the Premises, including, but not limited. to,
water, sanitary sewer, electric, gas and telephone utilities.
6. MAiNTENAIV'CE A1�TD REPAiRS.
6.1. Mainten�nce and Repairs b� Lessee.
Lessee agrees to keep and maintain the Premises in a good, clean and sanitary
candihon at at11 times. Lessee covenants and agrees fi,liat it w�ill not make or suffer any waste
of the Prernises. Le�see will, at Lesses's sale cost and e�ense, make all repairs necessary
to pr�vent the deteriaration in condition or value of the Premise�, including, but not liuuted
to, the maintenance of and repairs to all structures, including, but not l�imited ta, doors,
windows and roofs, and a�l fi�ctures, equipment, modifi.cations and pavement an the
Premises. Lessee agrees that, except as otherwise expressly pxovided herein, all
itn�arovements, trade fixtures, furnishings, equipm�nt and aiher pe�rsonal property of every
kind or descriptifln which may at any time be an th� Premises shall be at Lessee's sole risk
or at th�; sol� risk of those claiming under Lessec. Lessor shall nat be liable for any damage
Hangar 11N T.ease Agreement with 4
Sterlung �ort Worth 7 C, L.P.
to suoh property or loss suffered by Lessee's bttsiness or business operations, which may be
caused by �he bursting, overflowzng ar Ieaking of sawer or steam pipes, from water from
any source whatsoever, or from any heating fixiure�, plumbing fixtures, electric wires,
noise, gas or odors, or fram causes of any other matt�r.
6.2. Inspection.
6.�.i. Lessor shall have the right and �privilege, thrc�ugh its officexs, agents,
servants ox employees, to znspect th� Premises. Except in the even# of an
emergency, Les�or shall canduct during Lessee's ordinary business hours and shall
use its best ef�orts to provide L�ssee at least two (2) hours notice prior to inspectian.
6.2.2. If Lessor deternvnes during an inspec�ion of the Premises tha# L�ssee is
responsible under this Lease for any maintenance or repairs, L�ssor shall notify
Lessee in writing. Lessee agrees to begin such maintenance or r�pair w�rk
diligently within thirty {3Q} calendar d�ys following receipt of such notice and to
then complete such maintenance or repair work within a reasonable time,
considering the aatizre of the wnrk to be done. Tf L�;ssee fails to begin the
recomrr�ended maintenance or repairs �vithin such time ar�ails to complete the
maint�nance or repaiurs within a reasonable tim�, Lessor may, in its discretion,
perform such mainternance ar repairs on behalf oiLessee. In this event, Lessee will
reimburse Lessor fvr the cast of the maintenance or repairs, and such rei�bursement
will be due on the date o�Lessee's next monthly rent payment fallovving complenon
of the maintenance or repairs.
6.2.3. During any insp�ciion, Lessor may perform any obligatians ihat Lessor is
authorized or required to perform under the terms of this Lease or pursuant ta its
governmental duties undez �ederal state or local laws, rules or regulaiions,
G.3. En�ironmental Remediation.
Lessee agrees that it has inspected the Premises and is fully advised of its own rights
withaut reliance upon any represeatation made by Lessor cancerning the enviranrnental
canditzon of the prernises. LESSEE, AT' ITS SOI.E COS'T AND EXPENSE, AGREE,S
THAT IT SHALL BE FULLY RESPONSIBLE FOR TFi� REMEDIATION 4F ANY
VIOLATION OF A1VY APPLICABLE FEDERAL, STATE OR LOCAL
ENVIRONMENTAL REGULATIONS OR STANDARDS' THAT IS CAUSED BY
LESSEE, ITS OFFICERS, AGENT,S, SERYANTS, EMPLDYEES, CQNT'RACTORS,
ST.iBCONTRACTORS OR INVITEES. Lessor shall be responsible for the remeciiation of
any violation of any applicabl�; fedez'al, state or Iocal environmental regulations that is
caused by Lessor, its officers, agents, servants or employees. For any violation of any
appli.cable federal, state or local et��ironmental regu�ations that�is caused by a contractar of
L�ssor (other than Lessea), a subcontractor, prior tenant or other third party, Lessor sha.11 be
responsable far t}ie remediation of tlae same or sha11 take aIl necessary steps to ensure that
the person or en#aty causing such violation remediates the saxne.
Hangar 11N Lease Agreement with $
Sterling Fort Worth J C, L.P.
6.4. Lessee's Acceptiance of Premises.
Lessee accep#s the Paremises in its present condition as satisfactory �or all purposes
set forth in this Lease. '
6.5. Deposit.
Lessee has rernitted to Les�or ir� cash a non interest bearing deposit ("Dapasit"} in
the amount of $9,750.14. Lessor may use the Deposit to pay £o;r any unperformed
obligations of Lessee under this Lease, including, -but nat limited to, nan-payment o� rent,
maintenance, :repairs or other da�nages, Because the Depasit also secures unp�rformed
ob�igatzons of Lessee under its other leases af pxoperty at the Auport, the amount of the
Deposit ur�,der this Lease is s�xbject to increase at any time. Therefore, Lessee shall increase
the amount of the Deposit if requested l�y Lessor (i) within thirty (30) calendar days
following receipt of written notice and (ii) provided that the amaunt of the Deposit daes not
�xceed one (1) months' rent hereunder. Unless Lessor te�minates this Lease as provided
herein, Lessor wi11 refund to Lessee any unused portion af the Deposit within tl�irty {30)
calendax days following the date that Lessee lawfully vacates the Premises. Lessee agrees
t,�at i� Lessor terminates this Lease for any breach or default, Lessor shall be enti�led to
retain the en#ire ba�ancr; oi the Deposit as liquidated damages, and not as a penalfy, for
administrative costs associated wifi1� the termination process. Lessor �nd Lessee hereby
ag�ree tl�at this amount is a reasonable approxirnation of the actual darnages thafi Lessor will
incur as a result of the termination pracess. Assessment of such liquidated damages shall
not serve as a waiver by Lessar to collect any ather damages to which it may be entitled.
'�. DAMAGE OR DESTRUCTYON TO PRENIISES.
In the event of fire or other casualty which damages ar destroys all or any part of the
Premises, the following provisions shall apply:
71, Covera�e b�' Lessee's �nsurance.
Lessee's property insurance, as required by Section 12.1 of this Lease, �hall be
primary to any insurance an the Premises catried b�+ Lessor and shall be used exclusiv�ly to
repa�r ox rebuild the damaged or dest�ayed porkions of the Premises. Lessc� shall be
responsible far �versight of all repairs ar reconstruc#ion on and to the Prernises and shall
repa�ir or rebuild the damag�d or destroyed portions of the Premises to the size and
standards that meet or exceed th� size and standards of snclz portion� of the Pr�mises �arior
to the damage or desixuction. All repair and reconsl�ction aciivities carried out by or an
behalf of Lessee shall be conducted in accardance with Sections 8.1 through 8.6 of t.�is
Lease.
Hangai� 11N �ease Agreement with (
Sterling Fort Worth 7 C, L.P.
�,�. Premises Uninsured or Under'r�sured by Lessee.
If Lessee faiL� to carry adequate prop�rty insurance in accardance with Section 12.1
of this Leas�, Lessor, at Lessor's sole optiati, may {i) termina�e this Leasa upon thirty (30)
da.ys' advance written notice to Lessee or (ii) repair or rebuiid the Premis�s subs#antially to
its former condition at Lessor's own cost and expense. If Lessor notifi�s Lessee in writ�ing
within tk�irly {34) days following the date of damage or destruction that Lessar intends to
undertake the necessary repa.irs orr reconstt�ction, and �he damage or deshuction does not
rendex the affected portion of the Premises untenable, this Lease shall can#inue in effect
without any rent abatement wbatsoever so long as Lessor diligently cammences #he repairs
ox xeconstruc�ion within one hundred eighty (18d} days from the date of the darnage ar
destruction. If the damage ox destruction does r�nder the affected partion of �e Premises
temporarily tantenable, ar Lessnr do�s not commence the re�aixs or reconstruction within
ane hundred eighty (180) days fram the date of the damag� or deshuction, then for ihe
period of �i.m�; between such date azid th�; date a cert�ificate o� occupancy is issued far the
portion of the Premises that was rendered untenable, rent sha11 be proportianally reduc�d by
the amaunt af squarre footage rendered untenalale. Upon the issuance of a certificate of
occupancy and iherea.fter, rent shall comply with the Schedule of Rates and Charges in
effect at the time as they apply to the Premises as improved by Lessor. Tn other wards, if
Lessee was paying an unimproved gro�xnd rate and, pursuant fo this Saction 6.2, Lessor
repaired or rebuilt an aircraft hangar originally constructed by Lessee, then th� subse�uerit
rental ratE would not be that for unimproved land, but rather that which applied ta similar
hangar space at fr.�e A,irport at the tim�.
8. COi�ISTRUCTI01� AND INIPROVEMEI�TTS.
5.1. In General.
Lessee may, at its sole discretion, perform modifications, renovations or
improvements on or to the Prexnis�s (collectively, ��Improvements") so iong as it first
submits aIl plans, specificaYions and estimates iar the costs of the proposed work in writing
and a�o requ�sts and receives in writi.ng approval from the Avia#ion Departmcnt Director
or authorized xepresentative (the "Direetor"). Lessee covenants and a�re�s t1�at rt sl�all
fully comply waitl� a11 provisions of this Sec�ion S in the performance ai any such
Impravena�nts. Lessor shall take fixll title ta any Irnprovements on the Premises upan the
expiration or earlier term.i.na�ion of this Lease.
8.2. Process fax A��roval of Plans.
Less�;'s plans for any Tmpravements shall conform to the Airport's architectural
standards and musf also receive written approval from Lc;ssar's Departments of
Development, Engin.eering and Transportation/�'u�slic Works. All plans, specifications and
Hangar 11N T..ease Agreement with '7
Sterling-�ort Worth 7 G, L.P.
wark shall con%rm to all federal, state and local laws, ordinances, rules and regulations in
force at th� tim.e that the plans are presented for r��iew.
$.3. Docamenfs.
Lessee shall suppiy the Direciar with comprehensive sets of c�ocumentation relative
to any Improvement, including, at a minimum, as-built drawings of each pro�ect. As-built
drawings shall be new dxawings or redline changes to drawings previously provided to ihe
Director. Lessee shall supply the te�ual doc�amentation in computer forr3nat as requested by
Lessor. .
8.4. Bonds Rep�ired of Lessee.
Prior to tY�e co�nmencement of any Improvement, Lessee shall deliver to Lessor a
bond, executed by a eorporate surety in accordance with Texas Government Code, Chapter
2253, as amended, in the full amount of each construction conlxact ox project. The bvnds
shall guarantee (i) satisfactory compliance hy Lessee with all requirements, te�cns and
conditians o£ this Lease, including, but nvt limited to, fhe satisfactoxy campletion of the
Improvemen�s, and (ii) full payments to all pexsons, firms, carporations or other entities
witU w�om Lessee has a direct r�lationship for the performance af s�ch Im�rovements.
In lieu of the required bond, Lessee may pravide Lessor wiih a cash deposit ar an
assigrirnent o£ a certificate af depasit in an amount equal to 125% of the full amaun# af each
canstruction contract or proj ect. Tf Les�ee makes a cash depasit, Lessee shall not be entitled
tc� any inferest earned thereon. Certificates af deposit shall be fram a financial institution in
the Da11as-Fort Worth Melropolitan Area whic� is :insured bq the Federal Deposit Insurance
Carpaxa�ion and acceptable to Lcssor. The interest earned on the certificate of deposit sha11
be the pxoperty of Lessee and Lessor shall have no rights in sueh �terest. If Lessee fails to
complete the respective Imprave�nen�s, or if claims are filed by thard parties on grounds
relating to such Impravements, Lessar shall be entitled ta draw down the full amount of
Lessee's cash deposit or certificate of deposit.
8.�. Bonds Required of Lessee's Contractors.
Pziar to the cornmencement of any IrnpravemenY, Lessee's respective contractor
shall execute and deliver to Lessea surety performance and payrnent �onds in accordance
with the Texas Govemment Coda, Chapter 2253, as amended, to cover the eosts of all work
perform.ed under such cantractor's contract for such Improvements. Lessee sha11 provide
Les�or with copi.es of �ch boads prior to the cornrnencement of such Irnprovements. The
bonds shall guararatee (i} the faithfial performance and complet:ian of a11 canstruction work
in accordanc� wzt�i. the final plans and specifications as apprroved by Lessor and (i�) full
payment �ox all wages for labor and services and of all bi11s for materials, supplies and
equzpment used in the performance of the canstruction contract, Such bonds sha11 narne ta
both Lessor and Lessee as dual oblig�es. If Lessee serves as its own contracior, Section 8.A�
shall apply.
Hangar 11N Lease :�lgreemen# with $
Sterling Fort Worth J C, L.P.
8.6. Reieases bv Lessor Uuon Com�l�tion of Construction Work.
Lessox wiil a.11ow Lessee a dollar-for-dollar reumbursement frorn its ca.sh deposi�
account or xeduction of its claim upon Lessor's certificate af deposit upon {i), where LeSsee
serves as its own contractor, verification that Lessee has completed construetaon work or
(u), where Lessee uses a contractar, receipt oi the cant�actor's invaice and verification that
�he contractor has completed its wark and released Lessee to the exient o�Lessee's payment
for such wark, including bills paid, affidavits and waivers of liens.
9. USE OF PRE�IISES.
Lessee hereby agrees to us� the Premises solely for auiatian-related purpvses approved in
writing by Lessor. Lessee may not provide fixed l�ase operator services at the Auport without a
valid Fixed Base Operator Permit issucd by Lessor.
10. SIGNS.
Lessee, at its sole ex��;nse and with the prior written approv'al of the Director, may install
and rriaintain signs oa �he Premises related to Lessee's business ope:rations. Any such signs shall be
in keepi.ng with the size, ca1ar, location and manner of display a� other signs at the Airport. Lessee
sha11 maintain a11 signs in a safe, neat, sightly and physically gaad conciition.
11. RIGHTS AND RESERVATIQNS OF LESSOR
Lessar hereby retains the following rights and reservations:
11.1. Lessee's rights hereunder s�all be subject to a.Il c�sting and future utility easements
and rights-of-way granted by Lessar far the installation, maintenance, inspactian,
r�pair or removal of facilities owned or operated by e�ect�rric, gas, waier, sew�r,
commwa�ication or oth�r �tility companies. Less�e's rights addi�ionally shall be
subject to all rights granted by all ordinances ar statutes which allow such utility
eompanies to use publicly owned property for the �:rovisian of u�ility servicas.
11.�. All fixiures and items pexmanently atiached to any structure on the Prernises belong
to Lessar, and auy additions or al#erations made thereon shall immedia�ely becoxne
the property of Lessor.
11.3. Lessor reserves the right to take any action it con.siders necessary to protect the
aerial approaches of the Airpart against obstruciion, including, but not limited to,
the righ� to prevent Lessee from erecting or permitting to be erected any bui.lding or
other structure which, in the o�inion of Lessax, would limit the usefiilness of the
Hangar 11N Lease Agreement with g
Steriing-Fort Worth J C, L.F.
Airport, constitute a hazard ta aircraft or diminish the capability af existing or fizture
avigafional ar nav�gational aids used at the Airport.
11.4. Lessor reserves the right to close tempaxaxily the Airport or any of its facilities for
maintenance, i�provements, safety or security of eith�;r the Airparfi or the public, or
far any other cause deerned necessary by Lessor. Tn this event, Lessor sha11 in no
way be liable fax any. damages asserted by Lessee, ine�uding, bx�t not limited to,
darnages from an alleged disrup�ian of Lessee's business opera�.ans.
11.�. This Lease shali be suY�orclinate to the provisians of any existing ar futu.re agreement
between Lessor and the United States Govemtnerit which relates to the operation or
mau�tenance of the Airport and is required as a conditiQn for the expenditure of
fedexal funds for the development, main#enance ar repair of Airport infra5truciure.
11.6. During any wa� or national emergency, Lessor shall have the right to lease any part
of tk�e Auport, including its landing ar�a, to the Uruted States Gavernment. Tn this
event, any provi�ions of this instrument. which are inconsistent with the provisions
of ihe Iease to �he Gavernment 5hall be suspended. Lessor shall not be liabie for any
loss or damag�s alleged lay Lessee as a resuif af this aciion. However, nothing in
this Lease shall prevent Less�e from pursuing any r�ghts it may have for
reimbursement from the United States Government.
ll.i. Lessor covenax�ts at�.d agrees that d�ring the term of ihis Lease it will opera.te and
maintain the Airport and its faciliti�s as a public airport consistent with and pursuant
to the Spvnsor's Assurancas given by LessQr to the United States C"rovern�nent
through the Federal Airport Act, a public dacument �vhich is on file in Lessor's City
Secretary's Offiee and which is incorporated herein by reference for all purposes.
Lessee agrees �hat tbis Lease and Lessee's rights and privileges hereundex shall be
subordinate �o the �ponsar's Assurances.
12. INSURA�TCE.
1�.1. Types aF Covera�e and Lim�it�.
Lessee shall procure and maintain at all times, in full force and effect, a policy ar
policies of insuran.ce as speci�xed in tlus Section 12, na�ning the City of Fort Worth as a.n
additional insured and covering a1I risks related to the leasing, use, occupancy, maintenance,
existence or location of the Premises, Lessee sha11 obtain the follawing insurance coverage
at �he umits specified herein:
Hangar 11N Lease Agreement with 10
Sterlin$-Fort Worth .T G, L.P.
� Property:
Fire arid �x�ended Coverage on all improvem�nts on the Premises at full repl.acement
cost limit;
� Commercial Genera! Liability:
$3,000,040 per.oceurrence,
including praducts and compteted aperations,
q Autamnbile Lia6ilit_y;
$1,000,000 p�r accident,
including, but not liznited to, coverage on any auttimobile used in Lessee's aperations fln
the Premises;
• Han�arkeepers Legal Liabilit.y_:
$1,OOO,fl00 per occurrence;
• Environmental Impai�rment Liability:
$1,00O,OOD per accurrence.
In ac�dition, Lessee shall be responsible for all insurance to construct�o�, improvsments,
modifications ar renowat�ons to the Premises and for persanal property o£ its own or in its
care, custody or control.
12.2. Ad.�ustments to Required Covera¢e and �.,imits.
Insurance requirernenfs, includang additional types of coverage a�.d i.�creased limits
on �isting coverag�s, are subject to change at Lessor's opt�on and as necessary to cover
Lessee"s operatians at the Auport. L�ssee wi11 aocordingly comply wi.fh such new
requiurements within thirty (30) days following notice to Lessee.
1�.3. Certificates.
As a conditzon preceden.t to the effectiveness af this Lease, Lessee shall fiirt�ish
Lessor wi#h approp�ate certificates of insurance signed by the respective insurance
companies as proof that it has obtained the types and amounts af insurance �coverage
xequired herein. Lessee hez'eby covenants and agrees that not less thhan thitty (30} days prior
to the expiration of any insurance policy req�it'ed hereund�r, it sha.l.l pro�ide Lessor with a
new or renewa� ce:rt:ificate of insurance, Zn addition, Lessee slxall, at Lessor's requesi,
pravid� Lessor with evidence that ii has maintained such coverage in full force and effect.
Hangar l IN Lease Agreement with 11
Sterling-Fart Worth 7 C, T,.P.
1�.4. Additiona� Requirements.
Lessee shall maintain its insurauce with underwrit�rs authvrized to do business in
the State of Texas and which ar� satisfactory to Lessor. The policy or poiicies of insurance
shall be endorsed to caver all of Lessee's operations a� the Airport and to pro�ide that no
material changes in coverage, including, but not limited to, cancella�ion, terminanon, non-
xenewal ar amendment, shall be made without thirty (30) days' prior written notice ta
Lessar.
13. INDEPENDENT CONTRACTOR
Zt is expressly understoad and agreed that Lessee shall operate as an�depende�t contractor
as to all rights and privileges granted herein, and not as an agent, representativ� or emplayee of
Lessor, Lessee shall have the exclusive right to conirol the details of its operatic�ns and ac#ivities on
the Premises and shall be soleiy responsible fo� the acts �nd omissions of ifis o�6cers, agents,
servants, empioyees, cantractors, subcontractars, patrons, licensees and �invitees. Less�e
acknowledges that the dactrine of respondeat superaor shall not apply as between Lessor and
Lessee, its officers, agents, employees, contractors and subcontractors. Lessee further agrees that
nathing herein shall be conslxue� as F1ie creaiion of a part�iership ar joint ezxterprise between Lessoz
and Lessee.
1�4. LIABILITY A1�D INDEIVINIFICAT�ON.
LESSEE SHALL BE LIABL� AND RESPONSIBLE FQR ANY CLAIMS, DEIVIA�YDS,
LAWSUITS OR OTHER ACTIONS FOR DAMAGL�S OF ANY KIND, INCLUDIIVG, BUT
1VOT LIMITED TO, PROPERTY LOSS, PROPERTY DANfAGE AND/OR PERSONAL
INJURY OF ANY I�IND, INCLUDING DEATH, TO ANY AND ALL PERSONS, OF A1VY
gIND OR CHARACTER, WHETHER REAL OR AS'SERTED, TO THE` .�XTEIVT CAUSED
BY THE NEGLIGE�VT OR WILLFUL ACT(S) OR OMISSION(S) UF LESSEE', ITS
OFFICERS, AGENTS, S.�RYANTS, EMPLOYEES AND/OR SUBLESS�ES. INADDITI'01V,
LESSEE, AT LESSEE'S OYYN EXPENSE, S.�IALL INDEMNIFY, DEFEND AND HOLD
hTARNfLESS LESSOR, ITS OFFICERS, AGENTS, SERVANTS AND/QR EMPLOYEES,
FROIV�AND AGAINST ANY CLA1rM, LAWSUIT OR OTHER ACTIQN FOR DAMAGES OF
A.2VY I�1ND, INCLUDIIVG, BUT NOT LIMITED TO, PROPERTY DAMAGE OR LOSS
(INCLUDING ALLEG�D DAMAGE OR LOSS TO LESSEE'S BUSINESS AND ANY
R�SULT'ING LQST PR�FITS) A1VD/OR PER.S'ONAL IN.TURY, .INCLUDIIVG D�ATS, TO
ANY AND ALL PERSONS, OF ANY KIND OR CHARACTER, WIYETHER REAL OR
ASSERTED, TO THE EXTENT C,AUSED BY THE NEGLIG�NT OR WILLFUL ACT(S) OR
OMISSIQN(S) OF LESSEE, ITS �FFICERS, AGENTS, S�RVAIVTS, EMP�OYEES
AND/OR SUBLESSEES
Hangar 11N Lease Agreement with lZ
Sterling-Fort Worth ] C, L.P.
LESSOR DOES NOT GU�IRANTEE POLICE PROTECTION TO LESSEE OR ITS
PROPERTY. LESSOR IS OBLIGATED 01VLY TO PROYIDE SECURI'TYADEQUATE TO
1YIAINTAIN LLG'SSOR'S CERTIFICA�TION UNDER FAA REGULATIOINS. LESSE�
SHALL COMPLY WITH ALL APPLICABLE REGULATIONS 4F THE F'AA PERTr�INING
TO AIRPORT SECURITY ON THE PREMISES WHICH IS REI�iTED TO LESSEE'S
OPERATIDNS THEREDN AND SHALL CD�PERATE WITH LE,SSOR IN THE
IMPLEMENTATIDN AND ENFORCEMENT 4F LESSOR'S SECURITY PLAN AT THE
AIRPORT. LESSEE SHALL PAY ALL FIIVES IMPOSED BY THE FAA 011T LESSOR OR
LESSEE RESULTING FROM LESSEE'S FAILURE TO COMPLY WITS SUCH FAA
REGULATIONS APPL�CABLE TO TH'E PREMISES OR TO FREVENT UIYAUTHORIZED
PERS'QNS OR PARTIES FROM THEI� OBTAI11�I1VGACCESS TD THE AIR OP�RflTIO11TS
AREA OF THE AiRPQRT FROM THE PREMISES.
1�. WA�VER OF CHARiTABLE IM1i�IUliTITY OR EXEMPTION.
If Less�e, as a chariiabla association, corporatian, parhnexship, individual enterprise or
entity, claims immuaut�r to or an exemption from liability iar any kind of prop�rty damage or
personal damage, injury ar death, Lessee hereby expr�ssly wazve� its rights to plc;ad defensively
any such ixnmunity ar exemption as against Lessar. •
�6. DEFAULT A�TD REIVIEDTES.
16.1. Fai�ure b.y Lessee to Pay Ren#, Fees or Other Char�es.
Ii Lessee fails to pay any rent, fees or other charges due under this Lease, Lessor
shall deliver to Lessee a written invoice and no�ice to pay the invoice witivn, fen (14)
calendar days. If Lessee fails to pay the baiance outstanding within such time, Lessor shall
have the�right to terininate this Lease immediately.
1G.�. Failure ta Compl_y with Qther Terms or Conditions.
�� Lessee breaches or defaults under any provisioan of this Lease, other than those
breaches oz� defaults that are addressed by Sections 16.1, Lessar shall deliver wriiten no�ice
to Lessee specifying the nature of such breach or default. Lessee shall hava thirty (30)
calendar days following such written natice to cure, adjust or correct the problem ta the
standard existing prior to th� breach. If Lessee fails to cure the breach ar de�ault within
such tirne period, Lessor shall have the right to terminate ihis Lease immediately; pravided,
howevex, that in the event such breach or default can7not reasonabiy be cured within thirty
{30) calendar days following such written notice, Lessee shall not be in default if Lessee
commences #o cure, adjust or eorrect the problem witiiin sucn thirty (30) day period and
thereafter diligently and in good faith pursues such cure, adjusiment or correction to
conclusion.
Hangar 11 N Lease Agreement with 13
Sterling-Fort Worth J C, L.P.
16.3. Ri�hfs of Lessor U�on Termination or Exp�ra#ion,
1'�,
Upon termination or exp�ation of this Lease, a11 rights, powers and pri�ileges
granted to Lessee hereunder shall �ease and Lessee shall vacat� the Premuises. �]V'ithin
twenty {20) days �'nllowing the effective date of termination or expiration, Lessee shall
remove from the Premises all trade fixtures, iools, machinery, equipmen�, rnaterials and
supplies placed on the Pr�mises by Lessee pursuant ta this Lease. After such iime, Lessor
shall have the right io take full possession of the Premises, by force i�' necessary, and to
remove any and all parties and properiy remain�ing on any part af the Premises. Lessee
agre�s that it will assert no claim of any kind against Lesso�, its agents, servants, ernployees
or representati�es, whzch may stem frorn Lessor's termination af this Lease ar any act
incident to Lessor's assertion of its right to ter�iinate or Lessor's exercise of any righ�s
granted hereunder.
NOTICES.
Noiices required pursuant to the pravisions of this Lease shall be conclusively deternlined
to have been delzvered when (i) hand delivered to the oth�r party, its agents, employees, servants ar
representatives, or (i�} deposited in the Un�ited States Mail, postage prepaid, addressed as follows:
To LESSOR:
For Rent:
City af For� Worth
Revenue Office
1.000 Throc�norton
Fort Worth TX 76142
To LESSEE:
Sterling-Fort Worth J C, L.P.
Hangar 11N
4201 N. Main St.
Fort Wox�th, TX 'I61 �5-2752
18. A.SSIG1i1MENT A1�TD SUBLETTIIlTG.
18.1. Yn General.
For All Other 1VIatters:
City oiFort Worth
Aviatian Depark�nent
�201 N. Main Sf. �te. 200
Fort Wo� TX 76106
Lessee shall not assign, sell, convey, sublease ar transfer any of its rights, privileges,
ciuties ox interests granted by this Lease without the advance wri.tten consent o�' Lessor,
which consent shall not b� unreasvnably withheld ar delayed.
Hangar 1 IN Lease Agreement with 14
Sterling-Fort Wor#h .i C, L.P.
15.�. Conditions of Aunroved Assi�nments and Subleases.
If Lessar consents to any assignment or sublease, all t�rms, coven.ants as�d
agreements set farth in this Lease shall apply to the assignea or sublessee, and such assignee
or sublessee shall be bound by the teams and conditions of this Lease the same as if it had
originally executed this Lease. Tb.e �ai�.ure or refusal of Lessar to appro�cre a requested
assignm�nt ax st�blease sha,ll not xelxeve Lessee of its obligations hereunder, including
payrnent of rentals, fees and charges.
19. LIENS.
19.1. Liens b_y Lessee.
Lessee acknawledges that it has no auihority to engage in any act or ta mak� any
contract which may create or be th� founda�ian for an�r lien upon the praperty or inte�esi u�.
the properry of Lessor. If any such purported lien is created or filed, Lessee, at its sale cost
and expense, shall 1Fquidate and discharge the same within t�irty {30} days of such creation
or filing. Lessee's failure ta discharge any such piuported lien shall constitute a breach of
this Leas� and Lessor may terminate this Lease upon thirty (30) days" written nat�ce.
However, Lessee's financial obligation �o Lessor fo liqtaidate and discharg� such lien sha11
continue in effect £ollovwing teimination of this Lease aud until such a time as the lien is
discharged.
LESSEE HERL�SY REPRESENTS AND WARR�4NTS THAT LE,S,SEE HAS
DISCHARGED OR CAUSED TO BE DISCHARGED ALL DEED OF TR�TST AND
OTHER LI�NS CONSENTED TO BYLESSOR UNDER CSC NOS. �Y �88 AND �4862.
19.2. Landlord's Lien.
IN ADDITION TO ANY APPLICABLE S?'ATUTORY LANDLORD'S LIE.�V,
LESSEE GRANTS TO LESSOR, IN ORDER TD SECURE PERFQRMANCE �BY
LESSEE OF ITS OB�IGA7TONS UNDER �IIS LEASE, A SECURITY INTEREST
IN ALL GOODS, INVEN'TORY, EQITIPMENT, FIXTURES, FURNITURE,
IMPROVEMENTS, CHATTEL PAP.E.R, ACCOUNTS AND GENERA.L
INTANGIBLES, AND O�THER PERSONAL PROPERTY QF LESSE� NQW OR
HEREAFTER SITUATED ON DR IN THE PREMISES OR OTHERWISE
�tE'LATING TO LESSEE'S USE OF THE PREMISES, AND ALL PROCEEDS
THEREFROM (THE "COLLAT'E.RAL "). IF LESSOR TERMINATES THIS iEASE
FOR A FAILURE BY L�SSEE TO PAY LESSOR RENT OR FOR ANY OTHER
BREACH 4R DEFAULT BY L,ESSOR, LESSOR MAY, IN ADDITION TO ALL
OTHER REMEDIES, 1�ITSDUT NOTICE OR DEMAND EXCEPT A5 PROYIDED
BELOW, EXERCISE T�IE �tIGHTS AFFORDED A SECURED PARTY UNDER THE
T'EXAS UNIFORI�1 COMMERCIAL CODE ("UCC'). IN C�NNECTION WITHANY
Hangar 11N l,ease Agreement with 15
5terling-Fort Worth J C, L.P.
PUBLIC OR PRIVATE ,�AiE UNDER THE UCC, LESSOR SHALL GIVE LES,SEE
FIVE (S) CALENDAR DAY,�' PRIOR WRITTEN NOTICE OF THE TIME AND
PLACE OF ANYPUBLIC SALE OF TFiE' COLLATERAL OR OF THE TfML� AFTER
WHICH ANY PRIVA�'E SALE OX OTHER INTENDED DISPOS�TION THEREOF
IS TO BE 1VtADE, WH.ICHIS AGREED TO BE A REASONAB�E NOTICE QF SUCH
SALE OR DISP05ITION.
20. TAXES A1�TD ASSES51VIE1�IT5.
Lessae agrees to pay any and all %dera.�, state flr local taxes or assessments which
may lawfully be levied against Lessee due to Lessee's use ar accupancy o£ the Premises or
any Improvements or property placed on the Pramises by Lessee as a resu�t of its
occupancy. Lessee also agrees to pay any and all federal, state ox local taa�es or assessments
which may lawfully be levied against Lessor due to Lessee's use or occupancy of the
Pr�mi�es or properiy pla.ced o� the Premises b� Lessee as a result of its occupancy or on
account of any 7mprovernents nr propertar placed on ihe Pxernises by Lessee as a result of its
occupancy.
21. COMPLTA�iTCE WITH LAWS, ORDINAI�TCES, RULES AND REGULATYONS.
Lessee covenants and agrees that it �hall not engage in atly unlawful use of tlle Premises.
Lessee further agrees that it shall not permit its o�icer5, agents, servants, employees, contractors,
subcontractors, patrons, licensees or invitees to engage in any wilawful use of the Pr�mises and
Lesse� immediat�ly shall remove from tha Premises any person engaging in such unlawfui
acfiivities. Unlawful use af the Premises by Lessee itself sha.11 constitute an immediate breach of
this Lease. Lessee agrees �o comply with a11 federal, state and local laws; all ordinanc�s, rules and
regi.alations of Lessor; al1 nzles and regulat�ons established by the D�rector; and all rules and
ragulations adopted hy the City Cou�cil pertaining io the conduct required at airports owned and
aperated by Lessor, as such laws, ordinances, rules and xegt.rla�ions exis# or may hereafter be
amended ar adapted. If Lessor notifies Lessee ar any of its o�ficers, agents, employees, contractors,
subc4ntr�actors, licensees or invitees of any violation of such laws, ordinances, rules ar regulations,
Lessee shall imrnediately desis# from and correct the violataon.
22. NON�DTSCRIIIRINAZTDN COVE1�iA1�l'T.
Less�e, for itsel�, its personal repres�ntatives, succe5sors in interest and assigns, as part of
the consideration herein, agrees as a covenant running with the land that no p�rson sha11 be
excluded from pa�ticipation in or denied the benefits of Lessee's use of th� Pr�mises on the basis of
race, calor, na�ional origin, religion, handacap, sex, sexual orientation or familial status. Lessee
fixrther agrees for itself, its person�l. xe�xesenta�ives, successors in interest a�d assigns that na
person sha11 be excluded fram ihe p:rovision af any serviccs on or in the con.s#�uction of any
Impro�ements or altera�ions to the Premises on grounds af ra.cE, color, national origin, religion,
Hangar 11N Lease Agreement with 16
5terling-Fort Worth 1 C, L.P,
handicap, sex, sexual orientatzon or familial status. Lessee agrees to fi.u7nish its accommadations
and to price its goods and se:rvices on a fair and equal basis to all persons. In addition, Lessee
covenanfis and agrees that it will at a11 times comply wi#1� ax�y requi�emez�ts imposed by or pursuant
to Tztle 49 of the Code of Federal Regulations, Part �1, Non-Discrimination in Federally Assisted
Progra�ns of the Department of Transportation and with any amendments to this re�ulaiian �crhich
may hereafter be enacted. Tf any claim arises from an alleged violation af this non-discrimina�ian
covenant by Lessee, its personal representatives, successars in int�rest or assigns, Lessee agrees to
indemnify Lessox and hold L�ssar harmless.
�3. L�CENSES AND PERNIITS.
Lessee shall, at its sale expense, obtain and keep in effect a111icenses and permits necessary
for the operation af its op�ations at the Airpvrt,
24. GOVERNIV�ENTAL POWERS.
It is understood and agreed that by axecution of this Lease, Lessor does not waive or
surrender any oFits governmental powers.
2�. NO WAiVER
The iailure af either party to insist upon the performance of any term or provision of this
Lease or �o exercise any right gra.nted herein shall no# constitute a waiver of that party's rig�t to
insist upon appropriate performance ar ta asserk any such right on any firture occasion,
26. VENUE AND JiJRISDICTTON,
If any action, whether real or as�erted, at law or in equity, arises on the basis a� any
provision of this Lease or of Less�e's aperations on the Prernises and/or the Auport, venue for suc�
aciion shall lie in state courts loeated in Tarrant County, Texas or the Uni#ed States District Court
far the Northern District of Texas, Fort Worth Division. This Lease sha11 b� consinted in
accordance wi�x the iavvs of th� State of Texas.
2�`. SEVERABILII'Y.
If any provision of this Lease shall b� held to be invalid, il�egal or unenforceable, the
validity, legality ana enforceability of the remaining provisions shall not in any way be affected or
zmpaired. �
Hangar 11N Lease Agreement with 1'�
5terling Fart Worth ,1 C, L.P.
�S. FORCE MA,TEi.TRE.
Lessor and Lessee shall exercise every reasonable effort to meet their resp�c�ve obliga�ians
as set forth in this Lease, but shall not be held liable for any delay in or onussion of per%rmance
due to farce maje�re or other causes beyond their reasonable conlrol, including, but not limited to,
compliance with any government law, ordinance or r�gulation, acts of God, acts of omission, fires,
strikes, lockouts, national. dasasters, wa�rs, riots, material. or Zabor restrictions, transportation
problems and/or any ather cause beyond the reasonable con�rol of Lessor or Lessee. �
29. HEADINGS 1VUT CONTR�LLING.
Heading� and titles used in ihis Lease are for reference purposes only and shall nat be
deemed a part of this Lease.
3D. El�i'TTRETY OF AGREEI�IEI�T.
�. This written instrument, including any docurnents atta�hed hereto ar incorporated herein by
raference, contains the en#ire understanding and agreem�nt between Lessor and Lessee, its assig�ns
and successors in interest, as to the matters cantaincd herein. Any prior or contemporaneous oral or
written agreement is hereby declared null and void to the extent in conflict with any provisions of
this Lease. The terms and conditions a�'this Lease shall not b� amended unless agreed to in writing
by bath parties and approved by #he City Council of Lessor.
IN WITNESS WHEREOF, ihe parties hereto have �xec-uted this Lease in multiples, this
day o� , 20Q3.
[SIGNATURES IMMEDI.ATELY FOLLOW ON NEXT PAGE�
Hangar 11N Lease Agreement with 18
Sterling-Fort Worth J C, L.P.
GTTY OF FORT WORTH.
I'
By; 'O�G�
Marc Ot� �
As�istant ity Manag�
ATTEST:
'`
� �.
By'-- --
�laria Pearsan '
City Secretary
APPROVED AS TO FORM A1�1D LEGALITY:
�
By: /��. ..�r�-� ���t;`��'
Pete;r Vaky ,
Assistant City Attomey
M & C: C-19070 04-30-02
Hangar 11N Lease Agreement with
Steriing-Fart Warth I G, L.P.
�9
STERLING-FORT WORTH J C, L.P.:
By: Sterling REIT, Jnc.,
its sole �e a��artner: �
gy; �� ( � � f� h ,,+ /
�. , � �� , :,,�,, . �-✓
RF. Bearden
President
ATTEST:
B � C_.�.� , c9 „____
Y �� _
�
,�
_ �
. �
STATE OF TEXAS
COUNTY OF �,-�oc d � y
BEF�RE NlE, the undersigned authority, a Notary PubIic in and for the State of Te�as, on
this day personally appeared R.F. Bearden, President of Sierling REIT, Inc., the so�e General
Partner of Sterlin��Fort Worth J C, L.P., knawn to me to be �he persan whase nam� is subscribed
to the faregoing insiru�ment, and acknowledged to me that tlie same was the act of the S#erlrng--Fort
Wort� 3 C, L.P. and that he executed the same as the aci ofthe Sterlix�g�Fort Worth J C, L.P. for
the purposes and consideration th�em expresaed and in the capacity therein stated.
GTVEN UNDER MY HAND AND SEAL QF QFFICE this3(�� day af�p,,.,a,��, ,
2003. i
,R ,`,,`,�y���t�111F��I�r�����,•
�W'm . i
� �
• R
t ; � +, ��as �+�� � �'� �
_ .�� �� � � -
STATE OF T�XAS § �/p��`�q'{,_ �4��° . �',=
�r� ; ;
I V � � .11'����• ga� • R
y � y��0A0��b�� ey
ALw.L�t3.LV 1 � '/,,',I�3.�� �1 �'`Y'+
COLTNTY OF T ''►���„„�„��„r�``
BEFQRE ME, the undcrsigned autharity, a Notary Public iri and for the State of Te�as, on
this day personally appeared Marc 4tt, lrnown to me fio be the person whose name is subscribed to
the faregoing instrument, and acknowledged to me tkzat #he same was the act of the City af Fart
Wort� and that he executed the same as the act of' the City of Fort Worth �or the purposes and
consideration thereaa�. expressed and in the capacity therezn stated.
JC..��_ �,.- �� ,C
\
Notary P'�blic�in ar�d for the
GIVEN UNDER MY �IAND AND SEAL OF OFFICE this /�� day of ��- ,
2003.
� ��rrr�����
NnfaryAu6li ���
� ��p$ � 7'exas
MY �Ommiss%n Fscp��
,� r� x�, aoos
�,.�
Hangar 11N Lease Agreement with
Sterling-Fort Worth J C, i,.P.
ota�y Public in and for the State of Texas
,`
. _ E�HZB�T A
Fr��n �o��s
FOR
h'EST PORTXOI�
OF FORM�R WARD Tf�TERNl�xIOTIA� LL'ASB
A.K.A. LOCATION 11-N
FORT V�ORTI� MUNZCrPAL AZRP4�.T
ME�.CHAM AIfZPORT
A Txact o� 1at�d aut o� �t�e James Wa3.J.ace Su.rvep, a3.so being
a porti.an of a Tract conveyed to the Ca,ty o� �art Worth by Deed
reco�ded in Volt�me 1074, Pa�e 498, Deed Racords, Tarxan� Caunty,
Texas, al'so bei�g a portiors of Port Worth M�srii.cipaJ. Airport,
h7eacham Field, more p�ar�icularly descrihed using the Texas
Coordxriake Systetn, North Cent�a2 Zane, Cnordina��es and Bearir��s
as €all.o�s: - '
COMMENCL� at a point in the West Zirie o� Narth Main Street
ar�d the norCh �ine o� 38�h SG�reet, said poin� bei.ng an easterly
souChwesC carn�er o� I�eacharrt Fie].d, �1i�NCE: NORTH 3,206.09 �eet
and i�'E5T J.,5$1.88 �eQt to Che �'OIN'T dP BEG�I�NTHG, saxd poi.nt
b�a.ng the mos� wester�}� corner o� the herein• • described lease,
the Coordxna�es of said BEGiI�NII�G posri� are K= 2,044,�.�D7.30, Y
= 420 � ].53 . 72 .
THBHC�: North 48 degrees 53 minutes �.9 seconds East, 50G.5]. �eet
�o a point, �or the most northe,r].y corner of said lease;
THENCE: South 41 degrees 06 minuCes �1 seconds �ast, 2�i6.7 feet
to a paxnt,. �or the mos� eas�e7rZy corner of sai,d lease;
T1iENCE: Sou�h 48 degees� 53 minut.es 7.9 seconds k'�.st, 9,3 feet to
a poi.nt; , �
TH�NC�: Sauth 4�. degrees 46 minute 41 seconds.Eas�, 23.5 �eet Co
a point;
THENG�: Sauth 48 degrees 53 mXnu�es �,9 seconds 4�esC, 495.21 feet
eo a poin�, for the most souther.ly 'corner of said lease;
THE�TCE. NortH 41 degrees 06 ma.nutes 4.� seconds West� 244.2 Feet
ta the PLAC� OF S�GZNN�NC and contaa.ning 120,464.75 square �eet
of l.and more ax ].ess. • _ �
.7RA:RME:�dg426
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�`ity of .�a�t Y�ar^t`hp Texas
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QATE R��ER�NCE NUMBER `L.OG NAME
4I3�102 **��19074 1
55TFRMS
PAGE
of 1
sus.�EGT TERMINATI�N OF CITY SECRETARY C�NTRACT NDS. 24183, 2418a, 24184,
24181, 24716, AND 24131 AND ALL ASSOCIATED AMENDMENTS, AND APpR�VAL
OF LEASE AGREEMENTS WITH ST�RLING-FORT W�RTH JC, L.P. I�OR LEASE
51TE5 11N, 92, 14N, 17N, �9N, 2flN, AND 22N, AND T-HA�IGAR 115 AT FORT
1rUORTH MEACHAM iNTERNATI�NAL AIRPORT
RECOMMENDATI4N:
li is recomme�d�d that the C9ty Council:
'i . Authar�ze the City Manager ta Termi�ate City Secretary Cantract Nos. 249 83, 24'i 80, 241$4,
24181, 247'16, and 24131 and aIC assaciat�d amendments with Sterling-Fort Worth JC, L.P. at Fort '
Worth Meacham InternatEvnal Airpart; anr�
2. Appro�e Lease Agreem�nts with St�rling-Fort Worth JC, L.P. for Lease S�tes 11 N, 12 and 14N,
17N, 19N, 20N and 22N, and T-Hangar 11 S afi �orf VVorth Meacham Intemational Airport.
DISCUSSI4N:
Sterling-F'ort Worth JC, L.P. is in the process of refinancing fheir hoidings at Fort Warth Meacham
International Airport. The financing in$titution requires 30 year terms on each of the properties.
Sterling-�art Worth JC, L.P. asks fha� eac� of their leases be cancelled and re-written with expiration
dates af 2032. Currently, #he majority of the leases expire in 2011, with ane lease ha�ing an expiration
date of 2029. All other terms and conditians of the leases will remain in effect. The ground rates
stipulated in the arigina! leases will r�main in effect until the original expiratEan dat�s and then wilf
increase to hangar rates where apprapriate.
At the appropriate time, requests for the Ci�y's consent to Deed of Trust li�ns on all leaseholds wif! be �
brought forward for City Cauncil appro�al.
FISCAL INF�RMATiQN/CERTIFICATION:
The Finance Director eertifies that fh� Revenue Division af the Finance Department wifl be respansible
for tF�e collection and deposEt of funds due to the City ur�der this agreemen�.
BG:�
Submit#ed for City Mauager's
OCtice by:
Bridgette Garrett/Acting
Origiaating Department Head:
Lisa A. Pyles
Additional [nformation Contact:
I FUND I ACCOUNT �
� (to)
G140 I I
� �
5403 I (from)
I P�40
I P�40
491D52
491352
C�IVTER
05520D9
0552001
AMOUNT , CITY SECRETARY
�
�
� APPROVED 04/30/02
Luis Llguezabal 5401