HomeMy WebLinkAboutContract 28387r
�fiY ����E'���Y
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FORT WORTH MEAC�AM I1�iTERNATIONAL AIRP�RT
GRUi]1�D LEA5E AGREEIVIEI�T
(IIANGAR 19N LEASE STTE)
This GROUND LEASE AGREEMENT {��Lease"} is made and entered into by and
between tUe CITY OF FORT WORTH (i`Lessor"), a home rule municipal corporatian organized
under the lavc+'s af the State of Texas, acting by and through Marc Ott, its duly authorized Assistant
Ci�y Manager, and STERLIl�TG�FORT WORTH J C, L.P, {"Lessee"), a Texas limited
partnexship acting by and through R.F. Bearden, President oi Sterling REIT, Inc., a Texas
carporation and Lessee'� sole General Parhler.
Recitals
The following sta#ements are true and correct and form the basis upon which Lessor and
Lessee have entered into this Lease.
A. Les�or and M.O. Rife TII and W.�. Th�rman previously entered into City S�cretary
Contract ("CSC") No. 9750, as axnended by CSC Nos, l�llp and 24181, a lease of certain
irnproved and unimproved property at Fort Worth Meacham international Airport ("Airport")
known as the Hangar 19N lease site (collectively, the "Previous Lease"}. Lessor consented to the
assignment of the Previous Lease (i} by M.O Rife III and V�.O. Thwman to Staci's Jet Center, Inc,
under CSC No. 104b5; (ii) by Staci's Jet Center, Inc, to Per£onnance Airc�ays, Inc. under CSC No.
15860; {ii) by Performanc� Airways, Inc, to For� V�o�r�th Jet Ce�ter, J.�.c. under CSC No. 212� 5; and
(iii) by Fort Worth Jet C�nter, Inc. to Lessee under CSC No. 27504. The Previous Lease
commenced on Februaty 1, 197$ and, as amended ir1 accordance with Lessox's then-existing
policies, was to expirc on 5epiernber 3Q, 20l l., unless xenewed by Lessee in accordan.ce with the
Previous Lease for one addi�ional five (S}-year term.
B. Lessee now wishes to reorganize its financing on all improvements owned by
Lessee an Lessee's Airport Ieasehold by entering anto a new loan w:ith anoiher lending institution
and executing new deed of trcust lien agreements with tha� institutian. In order to amorti�ze th�is new
loari, Lessee has requested that the initial term of all af Lessee's leases at the Airport be extended to
expir� in thir�:y (30) years, o�r 2032.
C. Lessor's published Minirnurra Standards for Fixed �ase Operators and Other
Airport Tenants (the "1Vlinimurn Standards") prohibit the lease o� prope�rf.y ovsmed by Lessor for
initial terms greater than thirty (30) y�ars with two renewal apiions for texms o£five {5) years each,
As a result, the initial term of the Previous Lease caz�nofi be amended to expire i.n 2Q32 because
such ac�ion would result in an aggregate inifial term in excess of thirty (30} years. T`herefore,
Lessor and Lessee 1�a.ve agreed to terminate the Previous Lease and.to enter into a new lease vf the
same prop�:rty for an initial �erm of approximately, but not more than, thirty {�G� _y-�a��..
Hangar 19N Ground Lease with
Sterling-Fort Worth J C, L.P.
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A�reement
Tn consideration of the mutual covenants, promises and obligations contained herein, Lessor
and Lesse� agree as follows:
1. TERIVIINATION OF PREVIOU5 LEASE.
The Pr�vious Lease is hereby terrninated contemporaneously wiih the execution of tl�is
Lease. However, such ternunaiion shall not constitute (i) a release by one party of any liability
accruing or obligation to indemnify under the Previous Lease or (ii) a waiver of one pariy to
enforce any unperformed duties or obligations o� the other under the Pretrious Lease. Lessee's
abligations to Lessor under Article VI, Paragraph B of CSC No, 9750 sha11 specifically, but wi�thout
limitation, sur�ive termination of th� Pr�vious Leas�.
�. PROPERTY LEASED.
Lessor hereby demises and Ieases to Lessee 66,426.2 square feet of real property at the
Airport laiown as the Hangar 19N lease site (the "Premises"), as shown in Exhibit "A", attached
hereto and hereby made a part of this Lease for all purposes
3. TERM �F LEASE.
The "Term" of this Lease shall commence on the date of its execution ("Effective Date")
and expire at 11:59 P.M. on July 31, 2Q32, unless terminated earlier as pravided herein, If Lessee
holds over after �he expiration of the Term, this action will create a month-to-manth tenancy. In
this event, for and during the holdover period, Lessee agrees ta pay all applicable rentals, fees and
charges at the rates provided by the Schedule of Rates and Charges or sim.ilarly published schedule
in efFect at the time.
4. RE1�IT.
4.1. Rental Rates From Effective Date Throu�h J�nuar_y 31, 2008.
4.i.1. Initial IVIonthl.y Rent.
Frvm'the Effective Date of this Lease until Januaiy 31, 20d8, Lessee's rent
for the Premises shall be based on rates prescribed by Lessar's published ,Schedule
of Rates and Charges or successor schedule (the "Schedule of Rates and
Charges") for unimproved land at the Airport. Rent during that period will be
calculated in accordance with the number of square feet of unimproved land that
Hangar 19N Ground Lease with 2
5ter9ing-Fart Worth 3 C, L.P.
camprised the Pr�mises a� the time the Previous Lease was executed so ti7at
Lessee's rent wi11 be calculated in the same manner as provided under the Previpus
Lcase. Therefore, from the Effective Date of this Lease untii Sepfembex 3a, 2002,
Lessee shall pay monthly rent far the Premises based on an annual rate of $0.2Q pez
square foot for 66,426.2 squaxe feet af uuaamproved land, or, collec#ively, $1,107.10
per month.
4.1.2. Annnal Ad.justments.
Or� October 1, 20d2 and on October 1 of each year thereafter through
January 31, 2008, Lessee's rental rates sha11 be subj�ct to increase hy Lessor to
reflect the upward percentage change, i£ any, in the Consurrier Price Index for the
Da11aslFort Worth Metropolitan Area, as announced by the United States
Departrnent of Labor or successor index an�/or agency during the immediaiely
preceding twelve-month periad ("CPI Change") (i), for t�e firsi increase, since the
Effective Date of this Lease and (ii) for each subsequent increase, since the effective
da�e of the last increase; provided, however, that Lessee's rental rates %x the
Premises shaIl not exceed the then-curirent rates prescribed by the Schedule of Rates
and Charges for impro�ed and 'uuimproved land at the Airport. If there is no CPI
Change or the CPI Change is downward, the rental rate far the Premises shall
remain consta�t until the following October 1 st. In no event shall th� rental rate for
the Premises ever be adjusted downward,
4.�. Rental Rates l�orn Febrnary 1, 20D8 Throu�h End nf Term.
4.�.1. Han�ar Rate Added.
From February 1, 2Q48 through the end of the Term, Lessee's annual rent
for ihe Pr�miSes, which will be payable in equal mon#hly installments, shall be
based on rates prescribed by the Schedule of Rates and Charges fox hat�gar space,
improved land and unimproved Iand at the Airport. Therefore, fram February 1,
2005 f,hrough Sept�rnber 30, 2008 Lessee shall pay monthly rent for the Premises
based on (i) the square foota�e of all hangar space on the Premises at that time
multiplied by the rate in effect on February 1, 200$ that is prescribed by the
Schedul� of Rates and Charges for hangar space at the Ai.rrport; plus (ii) the square
footage of a11 other improved land on the Premises at that time multiplied by the rate
in �ffcct on February 1, 2008 that is prescrib�d by the Schedule of Rates and
Charges for improved land at th� Airport; plus (iii) the square footage o� aIl
unirnproved land on the Prr:mises at that time multiplied by the rate in effect an
February 1, 2008 that is prescrib�d by the Schedule of Rates and Ch�ges �ar
unitnproved Iand at the Aizport. Lessee shall continue to retain title to any hangar(s)
and other improvements located on the Premises until expiranon or earli�r
termination of this Leas�.
Hangar 19N Ground Lease with 3 '
Sterling-�'o�t Worth J C, L,P.
4.2.2. Annual Adjustments.
On October 1, 2008 and on Ociober i of each year thereafter thxough t�ae
end of the Term, Lessee's rental rates shall b� subject to increase by Lessor to
raflect the upward CPI Change (i), for the first incr�ase, since February 1, 2048 and
(ii) for �ach subsequent increase, since the eifectivc date of the last increase
("Annual Rent Adjus�inent"); provided, howe�ver, that Lessee's renial rates for tha
Premises shall not exceed the then-current rates prescribed by the Schedule of Rates
and Charges for hangar space, improved land and unirrtpro�ed land at the Airport.
Lf ther� is no CPI Chang� or the CPi Change is downward, the rental ra�e for the
Prerriises shall remain constant until thc �ollowing Octaber lst. In no event shall the
rental rate for th� Premises ever b� adjust�d do�mward.
4.3. I�v�Year Adjustmen�s.
In addition to the Annual Rent Adjustm�nts, on Oc�ober 1, 2018, and every
five (S) years therea$er �or the remainder of the Term (i.e. on October 1 of 2023 and
2028) rent far fihe Premises shall automatically be adjusted to equal the then-current
rates prescribed by �he Schedule of Raias and Charges for hangar space, improved
land and unimpraved land at fihe Airport.
4.4. Payment Dates and Late Fees.
Monthly rent payments are due on ar before the first (lst) day of each month.
1'ayments must be received during normal working hou�rs by the due date at the lacation for
Lessor's Revenue Office set forth in Section 17. Rent shaU be considered past due if Lessor
has not received fiall payment after the tenth (l Oth) day of tl�e month for which payment is
due. V4'ithout limiting Lessor's termination rights as provided by this Lease, Lessor will
assess a lafe penalty charge of ten percent (10%) per mon�h on the entire balance of any
overdue rent that Lessee may accrue.
�. UTiLITIES.
Lessee, at Lessee's 5o1e cost and expense, shall be responsible far the installation and use oi
all uiili�ies service �o alI portions af the Premises and for ali othex related uiilities expenses,
including, bui no� limited to, deposits and expenses required for the installation of ineters. L�ssee
fiirther covenants and agrees to pay all costs and expenses for any e�tension, installation,
maintenance or repair of any and a1I utilities serving the Premises, including, but nat limited to,
wa�er, sanitary sewer, electric, gas and telephone u�iliiies.
Hangar l9N Grouad Lease with 4
Sterling-Fort Warth J C, L.P.
6. MAINTEIlTA1�TCE AiiTD REPA.�RS.
6.1. 1Vlaintenance and ReAajrs by Lessee.
Lessee agrees to keep and maintain the Premises in a goad, clean and sanitary
condition at a11 times, Lessee covenants and agrees that it will not make or suf£er any waste
of tlle Prernises. Lessee will, at Lessee's sole cost and expense, make a11 repairs necessary
to prevent the deteriora�ion in condition ar value of the Premises, including, but not limited
to, the maantenance of and repairs #o aIl struciure�, including, but not limited to, doors,
windows and roafs, and all fxtures, equipment, modifications and pavernent on the
Prernises. Lessee agxees that, except as o#herwise expressly provided herein, a11
improvements, trade fixtures, furiushings, equipment and ather personal property of every
kind or description which may at any time be on the Premises shall be at Lessee's sole risk
or at the sfl�e risk of those claiming under Lessee� Lessor shail not be liable for any damage
to such property or loss suffered by Lessee's business or business operatians, which rnay h�
caused by the bursting, overflawing ar leaking of sewer or �team pipes, from avater frorn
any sowrce whatsoever, or fronz any I�eating fixture�, plumbing fixtures, electric vcrires,
noise, gas or odflrs, vr from causes of any ather matter.
�.2. Inspection.
6.2.L Lessar shall have the righi and privilege, through its of�icers, agezats,
servants or employees, to inspect the Premises. Except in the event o£ az�
emergency, Lessor shall conduct durin� Lessee's ordinary business hours and shall
use its best efforts io provid� L�ssee at least tvvo (2) hours notice prior to inspect�on.
6.�.�. If Lessor determines durin�; an inspection of the Premises that Lessee is
resgonsible under tlus Lease for any maintenance or repairs, Lessor shall notify
Lessee in writing, Lessee agrees ta begin such maintenance or repazr work
diligently within thirty (30} calendar days following receipt of such notice and to
then complete such maintenance or repair work within a reasonable time,
eansidering the nature of the work to be done. If LesSee fa�1s ta begin the
recommended maintenance ar repairs within such tixne or fails to camplete the
maintenance ar repairs wif,hin a reasonable time, Lessor may, in its d'zscretian,
perform such maintenance or repairs an beha]f of Lessee. In this event, Lessee �c+'ilI
reimburse Lessor for th� cost of the rnaintenance or repairs, and such reirnbursexz�ent
will be due Qn the date of Lessee's next rrionthly rent payment following completion
oithe maintenance or repairs.
6.2.3. During any inspection, Lessor may perform any obligations that Lessor is
authorized or required to perform under the �erms of �his Lease or pursuax�.t to its
govemmental duties under federal staie or local laws, rulas or regulations.
Hangar 19N Ground l.ease with 5
Sterling-FarE Wor�h J C, I..P.
6.3. Environmental Remediation.
Lessee agrees that it has inspected the Premi�es and is fitlly advised af its own rights
without reliance upon any representation made by Lessor concerning the environmental
condition of ihe premises. LESSEE, AT ITS SOLE COST .AND EXP�II�SE, AGREES'
THAT IT SHALL BE FUL�Y R�SP4IYSIBLE FOR THE REMEDIATION OF ANY
VIDLATIDN OF A1VY APPLICABLE FEDERAL, STATE OR LOCAL
ENVIRONIVIENTAL REGUI.ATIONS OR ST'ANDARDS THAT IS CAUSED BY
LESSEE, ITS OFFICERS, AGENTS, SERVANTS, EMPLOYEES, C4NT�ACTORS,
SUBCONTRACTORS OR INVITEES Lessor shall be responsible far Yhe remediation of
any �iolation of any app�icable federal, sta.te or local environmen�tal xegulations thai is
caused by Lessor, its officers, agents, servants or empioyees. For any violation of any
applicable federal, state or local environmental regulations that is caused by a contractor of
Lesso� (o�her than Lessee), a subcontractor, prior tenant or o�her tlurd party, L�ssor shall b�
responsible for the remediati�n of the same or shall take a11 necessary steps to ensure th�t
the person or entity causing such violation rernediates the same.
6.4. Lessee's Acceptance s�f Premises.
Lessee accepts the Prernis�s in its present conclition as satisfactory �or aIl purposes
set forth in this Lease.
6.�. Depasit.
Lessee has remit�ed to Lessor in cash a non-interest bearing deposit {°GDeposit") in
the amount o� $9,750.14. Lessor may use th� Deposit to pay for any unperformed
obligations of Lessee under this Lease, including, but not limited to, non-payme�t of renfi,
maintenance, xepairs or other damagss. B�cause the Depo�it also secures wnperformed
obligatian.s of Lessee under its other Ieases of properiy at the Airpart, the amount of the
Deposit under this Lease is subject to increase at any time. Therefore, Lessee shall increase
the amount of the Deposit if requested by Lessor (i} within thirly (30} calendar days
fallovcring receipt of wriit�n notice anci {ii) provided �hat the amaunt of the Depo�it daes not
exceed one (1) rnonths' rent h�;reunder. Unless Lessor terminates this Lease as provided
herein, Lessflr will refund to Lessee any unused partion of the Deposit within thirty {30)
calendar days fallowing the date that Lesse� lawfully vacates the Premises. Lessee agre�s
tha# if Lessor terminates this Lease for any breach ar default, Lessar shall be entitled to
retain the entire balance of the Deposit as liquidat�d damages, and not as a penalty, �or
adtnixusirative casts associated with the termination prvicess. Lessor and Lessee hereby
agree that this amount is a reasonable approximation of the actual darnages that Lessor will
incur as a resuit of the terminat�on process. Assessment of such liquidated damages shall
not serve as a waiver by Lessor ta coll�ct any other damages to which i# may he enfiitled.
Hangar 19N Ground Lease with 6
5teriing-Fort Warth .0 C, L.P.
7. D�11i�IAGE OR DESTR.UCT��1�T TD PREMISES.
In the evant of fire or other casualty which damages or destroys all or any part of the
Premises, the following provisions shall apply:
�.1. Coverage by Lessee's Insurance.
Lessee's property insurance, as required by Sectian 12.1. of this Lease, shall be
primaay to any insurance on the Premises carried by Lessor and shall be used �xclusively to
repair or rebuild the damaged or destroyed portions of the Premises. Lessee shall be
responsible for oversight of a11 repairs or rec�nstruction on and ta the Premis�s and shall
repair or rebuild the dama�ed or de�troyed portions of the Premises to th� size and
standards that meet or exceed the size and standards of such portians o� the Prenvises prior
to the damage or d�struction. All repa�r and reconstruction activities ca.r.ried out by or an
behalf' of Lessee s�all be conducted in accordance with Sections 8.1 through 8.6 of fh�s
Lease.
'�.�. Premises Unin�ured or UnderinsUred by Lessee.
If Lessee fails to carry ad�quate property insurance in accordance with Section 12.1
o£ this Lease, Lessaar, at Lessor's so�e aption, may (i) tern�ina�e this Lease upon thiriy {30)
days' advance written notice to Lessee or (ii} repai�r ar rebuild �he Premises suhstantially to
its former condition at Lessor's own cflst and expense. If Lessor notifies Lessee in wrifing
withir� thirty (30) days following the date of damage or destruction that Lessor intenc�s to
uz�dertake the necessary repairs or reconstruction, and the damage or destruction does nat
render the affected porkion of the Premises untenable, this Lease shali continue iz� effect
witliout any rent abatement whatsoever so long as Lessor diligently commences the repairs
or reconstruction wi%hin one hundred eighty (180} days from the date of the daznage or
destruction. If the datnage or desiruction does render the affected portion of the Premases
temporarily untenable, or Lessor does not commence the repairs ar reconstruction within
one hundred eighty (180} days from the date af the da�nage or destruction, then for the
periad of time between such date and t�e date a certificate of occupancy is issued for the
portion of the Premises that was rendered untenabl�, rent sha11 be proportionally reduced hy
the arnount o� square footage xenaered untenable. Upon the issuance of a cextificate of
occupancy an.d thereafter, rent shall comply with the Schedule of Rat�s and Charges in
effect at the time as they apply to the Premises as improved by Lessor. In other words, ii
Lessee was paying an unimproved grourid rate and, pursuant to this Section 6.2, Lessor
repaired ar rebuilt an aircra.ft hangar origin.ally constxucted by Lessee, �hen the subsequent
rental rate wfluld not be that for unimproved land, but rather that which applied to similar
hangar space at the Airport at the time.
Hangar 19N Ground Lease with �
5terling-Fort Worth J C, L.P.
S. CONSTRUCTYOIY AliTD IlViPROVEIVIE�TS.
�.1. In Genera�.
Lessee may, at i�s sole ciiscretion, perform modificarions, renovations or
improvements on or to the Premises (collectiveiy, "Ympravements") so long as it first
submits a11 plans, specifications and esiimates for the costs of the proposed wark � vvriting
and also requests and receives in writing approval from the Aviation Departiment Director
or authorized repr�sentativ� (tl�e "Director"}. Le�see covenants and agrees that it sha11
fully comply with alI provisions of this Sectivn 8 in the perforrnance of any such
Improvemsnts. Lessar shall take fu11 title to any Tmprovements an the Prernises upon the
cxpiration or earlier terrnination of this Lease.
�,�. Process for Approval af Plans.
Lessee's plans for any Improvements shall conform to the Airpart's a�rchitectural
standards and must also receive written approval frorri Lessor's Departments oi
Develapment, Engineering and TransportationlPublic Warks. All plans, specifications and
work shall conform to all f�deraI, stat� and Iocal laws, ardinances, rules and regulations in
for�e at th� iime that th� plans are presented for �eview.
8.3. Documents.
Lessee sha11 supply the Directox witb. comprehensive sets of docutnentatian relative
to any Improvement, �ncluding, at a minimum, as-built drawings of each project. As-built
drawings shall be new drawi.ngs ar redline changes ta drawings prcviously provided to the
Diurector. Lessee sb.all supply the textual dacumenta#ion in computer format as requested by
Lessox.
�.4. Bonds Requ'rred of Lessee.
Prior to the commencement of any �tnprovem�nt, Lessee shall deliver to Lessor a
bond, executed by a corporate su�rety �itl accordance with Texas Government Code, Chapter
2253, as amended, in the full amount af each canstruction contract or project. The bonds
shall guarantee (i) satisfactv�y compliance by Lessee with a1I requirements, terms and
conditions of ihis Lease, including, but not limiied to, th� satisfactory campletion of the
Improvement�, and (ii) full payments to all persons, firms, corporations or other entities
with whom LesSee has a direct relationship �or f.he pez'formance of such Improvements.
In lieu of f11e required bond, Lessee may provide Lessor with a cash deposit ar ari
assignment of a certi�icate of deposit in an amount equal to 125% of the full amount of each
conshuction contract or project. If Lessee makes a cash deposit, Lessae shall not be eniitled
to any interest easned thereon. Certificates of deposit shall be frorn a financial institution in
the Da11as-Fort Worth Metropalitan Area which is insured by the Federal Deposit Insurance
Hangar 19N Ground Lease with $
Sterling Fort Warth .T C, L.P.
Corporation and acceptable to Lessor. The inte�rest earned on the certificate of depvsit shall
be the property of Lessee and Lessor sha�I have na rights in s�.ch interesi. If Lessee �ails �o
complete the respective Imp�rovements, or if claims are filed by third parties on grounds
relating ta such Impro�ements, Lessor shall be entitl�d to draw down the fu�l amount of
Lessee's eash deposit or certificate of deposit.
�.5. Bonds Required of Lessee's Contractors.
Prior to the commencement of any Improvemeni, Lessee's respective contractar
shall execu�e and deli�er to Lessee surety performance and payment bonds in accordance
with the Texas Govemmen� Code, Chapter 2253, as amended, to cov�r the costs of all work
performed under such contractor's contract for such Improvements. Lessee shall provide
Lessor with copies of such bonds prior to the commencement o� such Improvements. The
bands shall guarantee (i} the faiihful performance and completion of a.11 construction wark
in aacordance with the finai plans and specifications as approved by Lessor and (ii} full
payment far all wages for labor aud services and of a11 bills for materials, supplies and
equipment used in the performance of the construction contract. Such bonds shall na�e to
both Lessor and Lessee as dual obligees. If Lessee serves as its own cantractor, Section 8.4
shall apply.
�.6. Releases b_y Lessor Upon Campletion of Constaruction Wark.
Lessor will all4w Lessee a dollar-for-dollar reimbursement frorn its cash deposit
account or reduction of its claim upon Lessor's certificate of deposii upon {i}, where Lessee
serves as its ovvn cantractor, verification that Lessee has completed cansttuction work or
(ii), �nvhere Lessee uses a contractor, r�ceipt of th� cantractor's invoice and verification thai
the contractor has cornpleted its work and released Lessee to the extent o£Lessee's payment
for such �wark, inclucling bills paid, affidaviis and waivers of liens.
9. ilSE UF PRElVIISES.
Lessee hereby agrees to use the Pr�mises solely for aviation-related purposes approved in
writin.g by Lessar. Lessee rnay nat provide fixed base operator services at the Airport without a
va.iid Fixed Base Ope�atar Permit issued by Lessor.
10. SIG1�S.
Lessee, at its sole expense and with ihe prior written approval of the Directar, may install
and rr�aitnfiain signs on the Premises related to Lessee's business aperations. Any such signs sha�i b�
in keeping with the size, calor,lacatian and manner of display of ather signs at the Airport. Lessee
shall maintain alI signs in a safe, neat, sightly and physically good candition.
Hangar 19N Graund Lease with 9
Sterling-Fort �Vorth J C, L.P.
11. RiGHTS AND RESERVATIONS OF LES�DR
Lessor hereby retains �he following rights and reservations;
11.1. Lessee's :rights k�exeundex shall be subject to a11 �xistin� and future utilaty easernents
and rights-o£ way granted by Lessor for th� installation, maintenance, inspection,
repaix or removal of facilities owned or operated by electric, gas, water, sewer,
communicafi.on or otlaer utility companies. Lessee's rights additiona.11y sh�.Il be
subject to all rights granted by all ordinances ar statu#es which allow such utzlity
companies to u.se publicly owned property fox the provxsion of utility services.
11.�. All fixtures and items permanently attached ta any s�ructur� on the Prexnises belong
io Lessar, and any additians ar alterations made ti�ereon shail immediately become
the property of Lessor.
11.3. Lessor reserves the right to ialce any action it considers necessary to protect fihe
aerial approaches of the Airport against abstaruci�on, including, but not limited to,
the right to prevent Lessee fram erec#ing or pernuti�ng to b� erected any building or
other stxucture which, in the opinion of Lessor, would limit the usefulness of the
Airport, constitute a hazard to aireraft ar diminish the capability of existing or future
avigational or navigational aids used at the Air�ort.
11.4. Lessar reserves the right to close temporarily Eha Airport ar any of its faciliiies for
maintenance, improvements, safety or security of eithear the Airport or the public, or
for any ather cause deemed necessary by Lessor. In thas event, Lessor shall in no
way be liable for any damages asserted by Lessee, includu�.g, but not limited to,
darnages frflrn an alleged disniption of Lessee's husiness operations.
11.�. This Lease shall be subordinate to the provisions of any existing or future agreement
bet�ween Lessor and the United States Government which relates to the operatxon or
maintenance of #he Airport and is required as a condition for the expenditure of
federal funds for the dev�lopmcni, maantenance or repair of Aaizport infrastructure.
11.6. During any war or national emergency, Lessor sha11 have the right to Iease any part
of the Airport, including its landing axea, to the Unifed States Government. In this
e�'ent, any provisions of this instrument whieh are inc�nsistent with the provisions
aiihe lease to the Government shall be suspended. Lessor sk�all not be liabl� for any
Ioss or damages aileged by Lessee as a result of this action. However, not,�ing in
this Lease shall prevc;nt Lessee from pursuing any rights it may hav� for
reimburse�nent from the United States Government.
11.'�. Lessor covenants and agrees that during the �erm of th'ts Lease it will aperate and
maintain tha Airport and its facilities as a public airport cansistent wit� and pursuant
to the Sponsar's Assurances given by Lessor to #he United States Govemment
xhrough the Federal Airport Act, a public docurnent which i� on fiIe iri Lessar's City
Hangar 19N Ground Lease with 10
5terling-Fort Wartfi J C, L.P.
Secretary's Of�ce and which is incorporated herein by re�erence for all purposes.
Lessee agrees that this Lease and Lessee's rights and privileges hereunder shall be
subardinate to the Sponsor's Assurances.
1 �. INSURANCE.
1�.1. T�pes of Coverage and Limiis.
Lessee shall procure and maintain at all times, in full fn:rce and effect, a policy or
policies of insurance as specified in this �ect�an 12, naming the City of Fort Worth as an
additional insured and covering alI risks related to the leasing, use, occupancy, maintenance,
exisfence or location of tl�e Premises. Lessee shall obtain the following insurance coverag�
at #he ]imits specified herein:
� Propert.y:
Fire and Extended Coverage on aIl unprovements on the Premises at full replacement
cost limit;
p Commercial General Liability:
$3,000,000 per occurrence,
including products and completed opera�ions,
� Aatomobile Liabili�y:
$1,000,040 per accident,
inclu+ding, but not limited to, coverage on any automobi�e used in Lessee's operations oz�
the Premises;
� Hangarkeepers Legal Liability:
$1,000,000 per occurrence;
� Envu�onmental Impairment Liabilit_y:
$1,QOQ,�OQ per occurrenca.
Tn addition, Lessee shall be responsible far aIl insurance to construction, improvements,
modifications ox renavatians to the Premises and �or personal property of its ov� or iri its
cate, custody or control.
Hangar L9N Ground Lease �vith 1 J
Sterling Fart Worth J C, L.P.
1�.2. �Adjushnents to Required Covera�e and Limits.
Insurance requirements, inclucting additional types of caverage axid increased limits
on existing coverages, are subj ect ta ehange at L�ssar's option and as necessary to cover
Lessee"s operations at the Airport. Lessee will accordingly comply with such new
r�quiremants within thirty {30} days following notice to Lessee.
1�.3. Certi�icates.
As a cand{tzon p�receden� �o the effectiveness of this L�ase, Lessee shall fiunish
Lessor with appxop�ate certificates of insurance signed by the respective insurance
campanies as paroof that it ha,s obtained the types and amounts of insurance coverage
required herein. Lessee hereby covenants and agz'ees that not less than thirty (30) days priar
to ihe expiration of any insurance policy required hereundear, rt shall provide Lessar with a
new or ren�wal certificate of insurance. In addi�ion, Lessee shal1, at Lessor's request,
provide Lessor with evidence that it has maintained such covearage in full force and effect.
12.4. Additional Requirem�nts.
Lessee shall maiz�tain its insuxance with underwriters authorized to do business in
the State of Texas and which are satisfactory to Lessor. Tbe palicy or policies of insurance
sha11 be endorsed to caver a11 of Lessee's operations at the Ai�por� and to provide that no
material changes in coverage, including, but not limited fio, cancellation, terminaiion, non-
renewal or amendment, shall be n�ade without thirty (30) days' p:�or written notice to
L�ssor.
13. YNDEPENDEl�I'T CONTRACTOR.
Tt i� e�ressly understood aud agreaci that Lessee shall operate as an independent contractor
as to all r�ghts and privileges granted herein, and not as an agen�, representative or employee of
Lessar. Less�e shall have the exclusive right to control the details of its operations and activities on
the Premises and shall be solely responsiblc far the acts and amissions of its o�ficers, agents,
servants, employees, con�ractors, subeontractors, patrons, licensees and inv'itees, L�SSE�
acknowledges that the doctrine of respondeat superior shall not apply as be#ween Lessor atid
Lessee, its officers, agents, employees, contractors and subcantractors. Lessee further agre�s ihat
nothing her�in shall be construed as the creation of a partnership or joint enterprise between Lessor
and Lessee.
14. LIABILITY AI'�TD IIiTDE1VIi�IFICATION.
LESSEE SHALL BE LIABLE AND I2E5PONSIBLE FOR ANY CLAIMS, DEMANDS,
LAWSUITS Ol� �THER ACTIONS FQR DAMAGES OF A1VY 1�ND, INCLU.D.ING, BUT
�-Tangar 19N Ground Lease with 12
S#erling-F'ort Worth 7 C, L.P.
NOT LIMITED TO, PROPERTY LOSS, PROPERTY DAMAGE AND/QR PERSQNAL
INJURY OF ANY �IND, INCLUDING DEATH, TQ ANY AND ALL PERSONS, OF ANY
gIND OR CHARACTER, WHETHER REAL �R ASSERTED, TO THE EXTENT CAUSED
BY THE ' NEGLIGEIVT OR Wl'LLFUL ACT(5) Ol� DMISSION(S) OF LESSEE, ITS
OFFICERS, AGE�YTS, SERYANTS, EMPLOYEES' AND/OR SU.&LESSEES INADDITION,
LESSEE, AT LESSEE'S OWN EX�'ENSE, SHALL INDEMNIFY, DEFEND AND HOLD
HARMLESS LESSOR, ITS OFFICERS, AG�NTS, SERVANTS AND10R EMPLOYEES,
FROM AND AGAINST ANY CLAIM, LAYYSUIT OR OTHEI� AC�'I4N FOR DAMAGES OF
ANY l�IND, IIVCLUDING, BUT N4T LIMITED T�, PRDPERTY DAMAGE OR LOSS
(INCLUDING ALLEGED DAMAGE OR LOSS TO LESSEE'S BUSIIVESS AND ANY
RESULTING LOST PRQFIT'Sj AND/QR PERSONAL INJURP, INCLUDING DEATH, TO
ANY AND ALL PERSONS, �F ANY KIND OR C.HARACTER, WHETHER REAL OR
ASSERTED, TO THE EXTENT CAUSED BY THE NEGLIG�NT OR WILLFUL ACT(S) Ol�
OMISS'ION(S) OF LESSEE, ITS OFFICERS, AGE1trTS, SERVANTS, EMPLOYEES
AND/OR SUBLESSEES
LESSOR DOES NOT GUARAIVTEE PULICE PRDTECTIUN �'O LESSEE QR ITS
PROPERTY. LESSDR IS 4BLIGATED ONLY TO PROi�IDE SECURITY ADEQUATE T�
MAINTAIN LESSOR'S CERTIFICATIDN UNDER FAA REGULATIDN,S LESSEE
SHf1LL COMPLY WITH ALL APPLICABLE REGULATIONS OF THE FAA PERTAIIVING
TO AIRPORT SECURITY ON THE PREMISES WHICH IS RELATED TO LESSEE'S
OPERATIONS' THEREQN AND SHALL COOPERATE WITH LESSOR I1V THE
IMPLEMENTATIDN AND ENFDRCEMLNT OF LESSOR'S SECURITY PLAN AT THE
AIRPORT. LESSEE SHALL PAY ALL FINES IM_POSED BY THE FAA ON LES,�OR 4R
LESSEE RESULTING FROM LESSEE'S FAILURE TU COMPLY WITS SUCH FAA
I�EGULATIONS .APPLICABLE TO THE PREMISES OR TD PREVENT UIVAUTHORI�ED
PERS4NS OR PARTIES FROM THEIR OBTAINING ACCESS T'O THE AIR OPERATIONS
AREA OF THE AIRPOI�T FRO1Vl THE PREMISES.
l��i���i��i��� ._�__i,.._\.. ... w..i ... . .�1/��/.� �\� � ► • 1� � . _ � `
If Lessee, as a charitable association, corporation, partnership, individual enterprise or
en�zty, claims immunity to or an exemption from liability for any kind of propezty damage or
personal damage, injury or death, Lessee hereby expressly waives its rights to plead de�ensively
any such immunity or exemption as against Lessor.
16. DEFAULT Ai�1D REMEDIES.
1.6.1. Failure b_y Lessee to Pay Rent, Fees or Other Char�es.
If Lessee fails to pay any rent, fees ar other charges due under this Lease, Lessox
sha.11 deliver to Lessee a wxitten invoice and notice to pay the invoice within ten {l0)
Hangar 19N Ground Lease with 13
Sterling-Fart Worth 7 C, L.P.
calendar days. If Lessee fails to pay the balance outstanding within such time, Lessox sl�all
have the right to terminate this Lease immediately.
16.2. FaiZ�re to Compl_y with Other Terms or Conditions.
If Lessee breaches or defaults under any provision of this Lease, other than those
breaches ar defaults that axe addxessed by Sections I6.1, Lessor shall deliver wzitten nQtice
to Lessee specx£y�ing the nature of such breach or default. Lessee shaJ.l have tkarrty (30)
calendar days following such writtan notice to cure, adjust or carrect the problem to �kl�e
standard existing prior ta the breach. If Lessee fails to cure �he breach or default within
such time period, Lessor sha11 have tha right to terminate this Lease immediately; provided,
however, that in the event such breach ox default cannot rea�onably b� cured within �hu-ty
(30) calendar days following such written notice, Less�e shall not be in default if Lessee
commences to cure, adjust or correct the problem within such th�rty (30) day period and
thereafter diligently and in good faith pursues such cure, adjustrnent Qr correction ta
conclusion.
16.3. Ri�bts of Lessor Upon Termination ox Expiration,
Upon termination or expira�ion af this Lease, all rights, powers and privileges
granted to Lessee hereunder shall cease and Lessee shall vacate the Premises. Within
twenty (20} days following thc eff�ctive date of termination or expiration, Lessee shall
remove from the Premises a11 trad� fixtures, tools, machinery, equipment, materials and
supplies placed on the Premises by Lesse� pursuant to this Lease. After such tune, Lessor
shall have the right to tak� full poss�ssion of the Premises, by farce if necessary, and to
remove any and all pariies and properiy remaining on any part of ihe Prernises. Lessee
agrees that it wi.11 assert no claim of any kind against Lessor, its agents, servants, emp�oyees
or :represeniatives, wluch may stern from Lessor's termination of this Lease or any act
incident #o Les.sor's assertion of its right to teimi�ate or Lessor's exercise o� any rights
g�'anfied hereunder.
17. NOTICES,
Notices required pursuant to the provisions of this Lease shall be canclusivcly determined
to have been delivered when (i) hand-deiivered #o the otY�er party, its agents, employees, s�:rvants or
representatives, or (ii) deposited in the United Stat�s Maai1, postage prepaid, addressed as follows:
Hangar 19N Ground Lease with 14
Sterling-Fort Worth J C, L.P.
To LESSOR:
For Rent:
City of Fori Worth
Revenu� Office
1000 Throckmorton
Fort Worth TX 7b102
To LESSEE:
Sterling-Fort Worth J C, L.P.
Hangar 11N
42Q1 N. Mairz St.
Fort Worth, TX 76106-2752
18.
19.
�iSSIGNMEI�TT AND SUBLETTIl�G.
18.1. in General.
For All Other l�Iatters:
City of Fort Worth
Aviatian Department
4201 N. Main St. Ste. 200
Fort Worth TX 7b 106
Lessee shall nat assign, sel1, convey, sublease or transf�r any of its rights, privileges,
duties or interests gran�ed by this Lease witbaut the advance written consent of Lessor,
which eonsent shall not be unreasonably wit�bheld or delayed.
18.�. Conditaons of Approved A,ssx�nments and Subleases.
If Lessor consents to any assignment or sublease, aIl ierms, covenants and
agreements set forth in this Lease shall apply to ihe assignee ar subJessee, and such assignee
or sublessee shall be bound hy the terms and conditions of this Lease the same as if it had
originally executed this Lease. The failure or refusal of Lessor to approve a r�quested
assignment or sublease shall not relie�e Lessee of its obligations hereunder, including
payment of rentals, fees and charges.
LIENSe
19.1. Liens b.y L�sse�.
Lessee acknowledges �hat it has no autihority ta engage in any a�t or to make any
c�nt�ract which may creaire or be the founda�io� for any lien upon the properiy or interest in
the prapert�r af Lessor, If any such purpnr�ed lien is created or filcd, Lessee, at its sole cosi
and expense, sha111iquidafe and discharge the same within tl�irty (30) days of such creation
or filing. Lessee's failure ta discharge any such putported lie�n shall constitute a breaeh of
t�is Lease and Lessor may temvnate tlus Lease upon� thit-iy (30} days' written notice,
Hangar 19N Ground Lease with 15
Sterling-Fart Worth J C, L.P.
However, L,essee's financial abligation to Lassor to iiquidate and discharge such lien shall
continue in effect following �ermination of this Lease and until such a time as ihe lien is
discharged.
LESSEE HEREBY REFRES`ENTS AND WARRANTS THAT LES`SEE HAS
DISCHARGED OR CAITSED TO BE DISCHARGED ALL DEED OF TRUST AND
OTHER LIENS CONSEN7'�D TO BYLES50R UNDER CSC NOS �1 �90 AND �4560.
� 9.2. Landlord's Li�n.
IN ADDITION TO ANY APPLICABLE STATUTORY LANDLORD'S LIEN,
LESSEE GRANTS' TO LESSOR, IN ORDER TO SECURE PERFORMANCE BY
LESSEE DF ITS OBLIGATIONS UNDER THIS LEASE, A SECURI�Y IIVTEREST
IN ALL GOODS, INVENTORY, EQUIPMEIVT, FIXTURES, FURIVITURE,
IMPROVE'MENTS, CHATTEL PAPER, ACC�UNTS AND GENERAL
1'NTANGIBLES, AND 4THER PERSONAL PRQPERTY OF LESSEE NOW OR
HEREAFTER SITUATED ON OR IN THE PREMISES OR OTHERWISE
RELATING TO LES,�EE'S USE OF THE PRE1VfISES, AND ALL PROCEEDS
THEREFROM (THE "COLLATERAL "). IF LESSOR TERMINATES THIS LEASE
FOR A FAILURE BY LESSE� TO PAY LESSOR RENT OR FOR ANY OTHER
BREACH OR DEFAULT BY LESSOR, LESSOR MAY, IN ADDITIDN TO ALL
OTHER REMEDIES, WITHQUT NOTICE QR DEMAND EXCEPT AS PROVIDED
BELOW, EXERCISE THE RIGHTS AFFQRDED A SECURED PARTY UNDER THE
TEXAS UNI'FORM COMMERCIAL CDDE ("UCC "J. I1V C�NNEC7'IQN WITH ANY
PUBLIC OR PRIVATE SALE UNDER THE UCC, LESS�R SHALL GIVE LESSEE
FIVE (5) CALENDAR DAYS' PRIOR �T.TTEN N�TICE OF THE TIME AND
PLACE OF ANYPUBLIC SALE QF THE COLLATERAL UR OF THE TIME AFT�R
WHICH ANY PRIVATE S.A�E OR OTH�R INTENDED DISPOSI7TON THEl�EOF
IS T'D BE MADE, WHICHIS AGREED TO BE A REA501VABLE NO�'ICE OF SUC.FI
SALE QR DISP4SITI4N.
20. TA�S AND A�SESS1i�E1�T'I'S.
Lessee agrees ta pay aaly and all federal, state ar local t�es or assessments which
may la�vfully be levied against Lessee due to Lessee's use or accupancy of the Premises or
any Improv�ments ar property placed on �he Pz'emises by Lessee as a result of its
occupancy. Lessee also a,gr�es to pay any and all federal, state or local taxes or assessrnents
which may Iawfully be levi�d against Lessar due io Lessee's use or occupancy of �he
Premises ar property placed on the Premises by Lessee as a result o� its occupancy or on
account of any Improvements or properiy placed on the Premuises by Lessee as a result of its
occupancy.
Hangar 19N Crraund I.ease with 16
Sterling-Fort Worth J C, I..P.
�1. COli9PL�ANCE WITH LAWS, ORDIli1Al�TCES, RULES A1�ID REGULATIOIliS.
Lessee covenants and agrees that it shall not engage in any unlawful use of the Premises.
Lesse� further agrees that it shall not peimit its officers, agents, servants, employees, contractors,
subcontraciors, patrons, licensees or invitees to engage in any unlawful use of the Premises and
L�ssee immediately shall remove from the Premises an� person engaging in such un�awful
activities, Unlawfi�l use of the Premi�es by Lessee itself shall constitute an immediate breach of
this Lease. Lessee agrees to comply with all federal, s�ate and Iocal laws; all ordinances, rules and
;regulations of Lessor; a11 rules and regulations established by the Director; and all rules and
r�gulations adapted by the City Council pertaining to the canduct required at airports owned and
operated by Lessar, as such laws, ordinances, rules and regulations exi.st ar may hereafter be
amended or adopted. If Le�sor notifies Lessee or any of its officers, agents, employees, contractors,
subcontractar�, licensees or i�vitees of any violation of such laws, ordinances, rules flr regulations,
Lessee shall immediately desist from and correct the violation.
22. NON�DISCRTM�NATIOl� COVENANT.
Lessee, for itself, its persanal representatives, successors in interest and assigns, as part of
the consideration herein, agrees as a cov�nant nu�ning with the land that no person sha�l be
excluded frorn participation in ar d�nied the ben�fits of Lessee's use of the Premises on the basis of
xace, color, national origin, religion, handicap, sex, sexual oric;ntation or familial status. Lessee
fiirther ageees for itself, its personal representatives, successors in interest and assigns that no
person shall b� excluded firom the provision of any services on or in the canstruction of any
impra�ements or alterations to the Prernises on grounds of race, color, national arigin, religion,
handicap, sex, sexual orientation or familial status. Lessee agr�es to furnish its accommodations
and to �rice its �oods and s�rvices an a fair and equal basis to all per�ons. In addition, Lessee
covenants and agrees. that it wi11 af a�l titnes camply with any requirements imposed by or pursuani
to Title 49 of the Cade of Federal Regulatians, Part 21, Non-Discrimination in Federally Assisted
Programs of ihe Department of TransparCation and with any amendme�ts ta this regulation r�vhich
may hereaf�cr be enacted. If any claim arises fram an alleged violation of tlus non-discrimination
covenant by Less�e, its personal representa�ives, successors in interest ar assigns, Lessee agrees to
indemnify Lessor and hold Lessor harmless.
�3. LICENSES AND PERMITS.
Lessee shall, at its sole expense, obtain and keep in effect a111icenses and p�;rmi.ts necessary
far the operation of its op�rations at t1�e Airport.
��. GOVERNMEI�i'I`AL POWERS.
�t is understood and agreed that by execution of this Lease, Les�ox does not waive or
surrender any of its governmental powers.
Hangar 19N Ground Lease with J'7
Sterling-Fort Warth J C, L.P.
2�. hT0 WAIVER.
The failure of either party to insist upon the performance flf any term or provision of this
Lease or to exercise any right granted herein shall not con.stitute a waiver of ihat party's right to
insist upan appropriate performance or to assert any such right on any future occasion.
26. VENiTE AND JURISDICTIOI�T.
If any action, whether real or asserted, at law or in equity, arises on the basis of any
provision of this Lease ar of Lessee's operations on the Premises and/or the Airport, venue far such
action shall lie in state courts located in Tarrant Courrty, Texas or the United States District Court
for ihe Northern Disirict of Texas, Fort Worth Division. This Lease shall be canstrued in
accordance with the laws of the Siate oFTexas.
���y3���7\ : - y �I
Tf any provision of this Lease shall be held to be invalid, illegal or unenforceable, the
validity, legality a�d enforceability of the remaining provisions sha11 not in any way be affected or
impairecl.
28. FORCE 1VIAJEURE.
Lessor and Lessee sha11 exercise every reasonable effort to mcet their respective obligatior�
as set forth in this Lease, but sha�l not be held liabie for any delay in ar omission of performance
due to force majeure ox other causes beyond their reasonable coni7rol, including, but nat limited to,
campliance with any gove�rnment law, ardinance ax regulation, acfis of God, acts of omission, fires,
strikes, lockouts, natiQnal disasters, wa�'s, riots, rnaterial ar labar rest�rictions, iransportation
problems and/or any other cause beyond ihe reasonable control of Lessor or Lessee.
29. HEADINGS NUT C011TTROLLIl�TG.
Headings and titles used in this Lease are for reference purposes only and shall not be
deerned a part of this Lease.
Hangar 19N Ground Lease with 18
Sterling-Fort Worth.T C, L.P.
. � ,
30. ENTIRET`Y OF AGREEMEIlTT,
This written instrumen�, including any dacuments attached hereto or incarporated herein by
reference, contains the �ntire �anderstanding and agreement betwean Lessor and Lessee, its assigns
and successars in interest, as to the matters contained herein. Any prior or contempora�eous oral or
written agreement is herehy declared null and void #o the extant in cop.flict with any provisions of
this Lease. The terms and eonditions of this L�ase sha11 not be amended unless agreed ia in writing
by both p�rties and appxoved by the City Council of Lessar. �
IN WITNESS WHEREQF, the part7ies hereto hav� e�ecuted this Leas� in multi�les, this
day of , 2003. �
C�TX QF FORT WORTH:
�
BY� .�-c� �,
Marc Ott
Assistant ity Manager
ATTEST:
�y: _ �
Gloria Pearson
Cxty Secreiaiy
APPROVED AS TO FORM Ali�D LEGALITY:
� � .
' ^ ��,���
By: f - '� � '
` � � `"""� ,
Peter Vaky
Assistant City Attorney
M & C: C-19470 04-30-02
HSngar 19N Ground Lease witk�
Sterling-FQrt Worth J C, L.P.
19
STERLI1�iGFORT WORTH J C, L,P.:
By: Sterling REIT, Inc.,
its �ole Gen�ral Partner:
` �% . )
� �.
BY� � � �,� f �
R.F. Beafden
President
ATTEST:
By: ��,,,.� �
• `
STATE OF TEXAS
COUNTY OF I� a r c� s §
BEFORE ME, the undersigned aufihority, a Notary Public in and for the State af Texas, o�a
tlus day personally appeared R.F. Bearden, President of Ste�rlang R�IT, Tnc., the sole Genaral
Partr�er o� Sterling�Fort Worth J C, L.P., known to me to be the person whose name is subscribed
to the foregoing instrum�nt, and acknawledged to me that the same was the act of the Sterling-Fort
Warth J C, L.P. and that he executed t.�ie same as the act of the Sterli►���Fort Warth J C, L.P. for
the purposas and cansideration there�n expressed and in the capacity therain stated.
GIV'EN UNDER MY HAND AND SEAL OF OFFICE �lv.s 3D�L. �ay of _.� ca,n „d,r�
2�03,
STATE OF TEXAS
courrrY oF TaRz�vT
�
�m�. �.J . � ����a�
Notary PubliL in�d for the Sta#e �.`.•°.•.
. *. �
� =+d.� :' a�� �♦� �; � ';
_� �� � �.�`�
�. �.Q� �4p,�� `'`N
� '�.�,�. , , ' �-,C`` ��
�- ,.,., ..,.
BEFQRE ME, the undersignec� authority, a Notary Public in and for the Siate of Texas, on
tlus day personally appear�d li�iarc Ott, knawn to me io b� the person whose narne is subscribed to
the foregoir�g ins�.iment, and acl�ow�edged to me that the same was the act of the City of Fort
Wo�-th and �hat he executed the same as the act of the City a� Fort Worth fvr ilie purposes and
consideraiion therein e�ressed and in the capacity therein staied.
GNEN UNDER MY HAND ,AND SEAL OF OFFICE this � day o��,�iu� ,
2003. �
' �RYf�
I ��o ° �;:
I ,���4 =
� �aytOFt�
, ,,,,,
HETTi� L�1P��
fifntary Pu�lic, 5tate of "Cexas
Nly Cammissior� �xxpires�
J�iy a�, anna
.._._,.,. �.�a
Notaty Public in and for fihe �tate of Taxas
Sangar 19N Ground Leaise with
Sterling-Fort Warth 7 C, L.P.
�
E�l[�BIT A.
�r��� xo��s
�o�
Ri�e and Thurmond
Leag� Site
Fort Woxt� Mun�.ci.p�� Airport
Meachsm �'ield
Lease No. 19-N
A parc�l. o£ land out of the ,�ames Wal.�.ece Sur��y, and bR�.n� a port�.on o� a
tract of land conveyed to �lze Ci�y of Fort Worth, bv deed recarded in Volume
J.074, Page �+9$, Aeed Records, Tarran� County, Texas, and al90 being a;,pc+rtion
of the i�ax� Waxth Mun�.cipa�. A�.rport, Meachaia gteJ.d, and being more particularly
aescr3b�a using the Texas Cn--ordinate Systern North Cen�xal Zona, coordinates
and hearings as follows:
Comzn�nca at a po�.nt in the north ��.ne af 38th S�ree� and the West line o� i�arth
Z1ain 5treet, sa�.d pointi being an easter].y sauthea�'t co�ner af sai.d Meactsam
Field, �hence; Nortli 4,201.03 fee� �nd Tdesr �.,xb8.47 feet to an iron pix� at
the ga�nt af beg�.nninp, said paiz�� a� beg�nni,ng �eing in the westerly �.ine of '
said Hc�rth Main Street, the co-axdi;nates a� said beg�,nning po�nt are ac = 2,D44,S20.65
and y � 421���a.52; . - �
7.'T�ENCE : Sauth �r9 ciegrees 10 iuinut�s 32 seconde West �Oa.00 f eet to � point;
TH�1�CE: Sou�h �i0 de�rees 49 minu�es 28 3�C4il�S Fast 221.�0 feet to a po�n�;
T�3ENCE: Narth �9 cie�rees ].� minu�es 32 secands Last 29b.7b £eet to a point
fo�' �he �aoat southerl,y sou�he�st cqrner of s8id �,ease, sa�.d point be�ng an
a curve, the center o� which i��ars Sou�h 53 d��;x'ees 2S minutes �.8 seconds
Wes� a radiva dis�ance o� 1,S60.Q�i f eer;
�HENC�: iVor�hwest�rl.y w�.rh sa�.d curve to the lef� and �r� �,�9��z�.y i�n� of
said North Ma3n Street an axc d�atance o� 22�..1b �ee� to the �1ace of beg�.nnin�
and conCaining 66,�26.20 aquar.a feet of J.and moxe ox ].�ss.
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�Al'E REF�RENCE NIJMSER �OG NAM� PAGE
413Ql02 **��� 90�'0 I 55TERMS 1 of 'f
5UBJEC7 TERMINATION OF CITY SECRETARY CONTRACT N S. 24183, 24180, 24184,
24181, 24716, AND 24131 AND ALL ASS�CIATED AMENDMENTS, AND APPROVAL
, OF LEASE AGREEMENTS WITH STERLWGFORT WORTH JG, L.P. FOR LEASE
SITES 11 I�, � 2, 14N, 17N, 19N, 2QN, AND 22N, AND T�HANGAR 9 9 S AT F�RT
WORTH MEACHAM INTERTJA7IONAi. AfRPORT
� RECOMMENDATI�N:
It is recommended that the City Cou�cil:
� 1. Authorize the City Manager to Terminat� City Secretary Contract Nos. 24� 83, 24180, 24184,
24�181, 24796, and 2413� and alf assaciated amendments with Sterling-Fvrt Worth JC, L.P. at Fort
Warth Meacham Internationai Airpor�; and
, 2. Approve Lease Agreements with Sterling-Fort Warth JC, L.P. fvr Lease Sites 11 N, 12 and 14fJ,
� 7N, � 9N, 20N and 22N, and T-Hangar 'E 1 S at Fart Worth Meacham Internatiana! Airpor#.
DISCUSSION:
Sterling-Fort Worth JC, L.P. is in fh� process of refinancing their holdings at Fort Wor�h Meacham
Ir�ternatianal Airport. The financing institution req�ires 30 year terms on each of the properties.
Sterfing-Fort Worth JC, L.P. asks tt�at each c�f their leases be cancelled ar�d re-wr�tten with expiration
dates of 2032, C�rrently, the majority of the ieases expire in 20� �, with one lease F�aving an expiration
date of 2029. All other terms and conditions af the leases will remain in effect. The ground rates
stipulated in the ori�inal leases will remain in effect until the origir�al expiration dates and thert wifl
increase ta hangar rates where apprapriate.
At the appropriate time, requests for the City's consent to D�ed af Trust liens on all leaseholds will be 'I
brought foruvard for City Council approval.
, FISCAL INFC)RMATION/CERTIFICATfON:
The Finanee Direciar cerk�fies thaf rhe Revenue Division of the Finance Departmenf wilf be responsible
for the collection and deposit af f�r�ds due to �he City t�nder this agreement.
BG:k
Submitted for City Manager's
Office by:
Bridgette GarrettlActing
Uriginating Department Head:
Lisa A. Pyles
Additionai Information Contact:
Luis Elguezabal
I FUND , A.CCOUNT I
� (to}
�
G140 I
5403 � (ftom)
IPE4D 491052
P�40 491352
5401 �
CENT�R f AMiQUNT
0552001
0552001
CITY SECRE'I"ARY
APPROVED 04/30/02