HomeMy WebLinkAboutContract 27876�4N �AC� fVp �,�� O� �
FORT WORTH SPINKS AIRPORT
HANGAR LEASE AGREEMENT
HANGAR W�1
This HANGAR LEASE AGREElVIENT (��Lease") is mac�e and entered into by and
bet�veez� the C�TY OF FORT WORTH {�{Lessor"}, a home rule municip� corpoz'ation organized
under tl�e laws of the State of Texas, ac#ing by and through Marc Ott, its duly authorized Assistant
City Manager, and AP AVIATiOIiT PROPERTIES LIIVIITED PARTNERSHIP (��Lessee"), a
Texas l�mited parinership, acting by and thraugh Brian Shiu, the duly aufhorized Vice Preside�t af
Development of AP Aviation, Inc., a Texas co�aaration and Lessee's sole general partner.
Ln cansiderarion of t�ae mutual covenants, promises and oblxgations cantained herein, Lessor
and Lessee agree as follows:
i. PROPERTY LEA5ED.
1.L Demised Prernises.
Lessor hereby demises to Lessee the following real property {hereinafter referred to
collectivaly as the "Prernises") at Fort Worth Spinks Airport ("Airport"): (i} 10,000
square feet of conventional hangar space, identified as Hazagar W-1 and depicted on Exhib�t
��A", attached hereto and� hereby inade a part of this Lease for all purpases, but specifically
�xcluding the approxunately 2,SQ0 square feei of office space therein (the "Office Space"),
which is also depicted on Exhibit "A" and shal� remain im the possession of Lessor and/or
any parly ta whom Lessor ele�ts, in its sole discretian, to lease, license, assign ar otherwise
convey such Offic� Space; {ii) 39,400 square feet of ramp space and other improved
property, as depicted on Exhibit "A"; and (iii} twenty (20} aircraft tie-down spaces, as
depicted on E�ubit "A". Lessee, at Lessee's sole eost and axpense, shatl have all portions
of the Premises except Hangar W-1 surveyed and, after Lessor and Lessee ha�e app�'oved
such survey, the survey sha11 be incorporated herein %r aIl purposes and may be attached to
this Lease as part of Exhihit "A".
1.2. Eauipment Licensed far Lessee's Use.
Lessor hereby licenses to Lessee the �se of the equipment identified on Exhibit
`tiS", attached hereto and hereby made a part of this Lease far all purpases, from the
Effective Date of this Lease until the expization af the Initial Term or any Renewal Term or
earlier termination of this Lease. Upon receipt of Lessor's written consent, Lessee, at
Lessee's sole cost and exper�se, may upgrade or replace such equipment as necessary for
Lessee's use Qf the Premises and apeXat�ons at the Airport with fizrniture and equipment of a
type and in a conditian as good as or better than the equipmant identified on E�ibit "B".
Tiile to any such up�ade�i or replaced equipment sha.�l vest in Lessflr upon installation in
the Prernises wiless Lessee deIivers the corresponding piece of equipment �icensed
hereunder to Lessor in accordance wifh Lessor's instruc�ons, in which case title to such
upgr�.ded or replaced equipxnent shall remain with Lessee. Lessee may alsa use and retain
Hangar Lease with
Anthony Properties
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title to eq�ipment owned by Lessee other than �he eyui�pment licensed hereunder in its
provision of FBO services at the Airport.
]..3. Ri�hts af Access b'v Lessor and Certain Third Parties.
Lessor, its officers, ag�ents, servants, employees, tenants, license�s, contractors and
subcontractors, herelay reserves the right of full access ta Hangax W-1 a� all tvnes and at no
cost in order to use and permit lawful use of th� �ffice Space. Lessee will pravide Lessor
with an�r keys, security codes and all ather information or material n�cessary for Lessor, its
off�cers, agents, ser�arits, ernployees, contractors and subcontractors to enter Hangar W-1.
Lessee hereby authorizes Lessor ta duplicate a�rry such keys and to divulge arzy sucb security
codes ar other information to {i) Lessor's Aviation Department personnel whos� duties
reyuire access to the Oi�ice �pace and (ii) tenants andlor licensees of Lessar who rent or use
all or a portion of the �ffice Space.
1.4. License of Parkin� Facilities.
In cQnnection with the autharized use of the Premises under this L�ase, Lessee, its
afficers, employees, agents, cantractars, subcontractors and patrons shali have the nan-
exelusive right to park autamabiles in fihe parking area adjacent to Hangar W-1 identifi�d
on Exhibit "A" sol�ly in accordance with Airport regulations and any specific instructions
or direction� of the Aviation Department Directar or authorized representative
("Directar"}.
2. TERIVI OF LEASE.
2.1. Initial Ternn�.
The "Initial Terr�" of �his Lease shall cvmmence at 12:Q0 A.M. on July 1, 2002
{`�Effective Date") �nd expire at 11:59 P.M. on June 30, 2007, unless terminated earlier as
providecl herein.
2.2 Renewals.
Unless Lessee is in default under this Lease at the time, at Lessee's option this
Lease shall automatically renew £or subsequent terms of five (5) years �ach (each a
"Renewal Term"} at rental rates for comparable property at the Airport, as specified by ihe
Aviatian Department's published Schedule ofRates and Charges ("Schedule af Rates and
Charges") in effect at th� tim�; provided, however, that, notwithstanding anything that may
be consirued to the contrary herein, this Lease may not be ren.ewed for any term past 7une
30, 2Q42.
2.3. Hflldover.
If Lessee holds ovez' af�er the expira�ion of the Initial Term or any Renewal Tertn,
this action will create a rr�onth-to-month tenancy. In this event, �'or and during the holdover
}�angar Lease with
Anthany Properties
period, Lessee agrees to pay ali applicable rentals, fees and charges at the rates provideci by
the Schedule of Rates a�d Charges or similarly published schedule in effect at the time.
3. RENT.
3.1. Annual Rent for Premises.
Frorn the Effective Date until 5eptember 30, 2002 Lessee shall pay Lessor rent far
the Pr�mises based on (i) an annual rate of $1.38 per syuare foot for con�entional hangar
space; plus (ii) an arataual rate of $0.2p per square %ot far ramp space and other �npro�ved
property; plus (iii) a monthly rat� of $42.00 per aircraft tie-down space, or, collectively,
$2,64Q per month. Prior to or on the Effective Date af this Lease, Lessee shall pay one {1)
month's rent in advance.
3.�. Annual Adiustments.
The rental rates set forth in Section 3.1 shall be subject to increase by Lessor an
October 1, 2002, and �n October 1 of any year during the Inirial Term oX a Renewal Term
(other than vn the effecfive date of any R�newal Term, in which case, as provided in
Section 3.1, the rental rates shall be adjusted to equal the then-current rates prescribed by
the Schedule of Rates and Charges) to reflect the upward percentage change, if any, in the
Cozasumer Price Index for th� Dallas/Fort Worth Metropolitan Area, as announced by the
United Sta#es Department of Labor ar succe�sor index and/or agency during the
immediately preceding twelve-month period {��CPI Chauge"} (i), for the first increase,
since fihe Effective Dat� of this Lease and (ii) for each subsequent increase, since the
effective date of the last increase ("AnnuaI Rent Adjustment"); provided, however, that
Lessee's rental rate shall not exceed the then-current rates prescribed by the Schedul� of
Rates and Charges far the type or types of property at tl�e Airport similar io the type or
types of property that cornprise the 1'remises. If there is no CPI Change ar the CPI Change
is downward, the rentax rate �or the Premises shall remain canstant -until thc following
4ctober 1 st. In no event shall the rental rate for the Premises ever be adjusted downward.
3.3. Pavment Dates and Late Fees.
Monthly rent payments are due o� or before the first (lst) day of each month.
Payments must be received during normal working hours by the dua date at the location for
Lessor's Revenue Office set forth in Section 16. Rent sha11 be cansidered past due if Lessor
has not rece�ved full payment after the ten.th (lUth) day of the manth for wkiich payment is
due. Without limiting Lessar's termination rights as provided by this Lease, Lessor will
assess a la�e penalty charge of ten percent (la%) per rnan�h on the entire balance af any
overdue rent that Lessee may accrue.
4. UTiLITIE5.
L�ssee shall pay Lessor One Hundred Dollars ($100} per month as Lessee's pro rata share
of the u�ility costs associated wilh Hangar W-1. I� any utiiity rates ar� inereased during the Initial
Hangar Lease with
Anthany Properties
Term or a Renewa] Tertn, Lessee shall also pay its pro rata share of the respective utility rate
increase follaw�ing the date it receirres written notificafion from Lessor of such rate increase. Lessee
shall deliver its monthly utility paymen�� to the location for LessQr's Avia#ion Deparfinent as set
forth in Section 16 on or before the fixst day of �ach month.
�. MAIl�ITENANCE AND REPAIRS.
5.1. General Maintenance and Repairs bv Lessee.
Lessee agrees to keep and rnaintain the i'rernises in a good, clean and sanitary
condition a� all t�mes. Lessee covenar�ts and agrees that it will not make or suffer any waste
of the Premises. Subject to S�ction 5.2 of this Lease, Lessee, at Lessea's sole cost and
expense, will make alI re�airs necessary to prevent the cieterioratian in condifion or value of
the Premises, including, bu# not limited to, the maintenance of and repairs to all hangars and
oth�r structures, doors, windows and roofs, and all fixtures, equipment, hangar
modifications and surrounding pavement, but excluding those portians af the pavement in
the tie-dawn area shown an Exhibit "A". Lesse� shall be respor�ible for a11 dama�es
�aused by Lessee, its agents, servants, employees, contractors, subcontractors, licensees or
invitees, and Lessee agrees ta fully repair all such damages at Less�e's sole cost and
expense.
Lessee agrees that, except as atherwise expressly provided herein, all irnprovements,
�rade fixtures, furnishings, eyuipment and ather personal property of every kind or
description which may at any time be an the Premises shall be at Lessee's sale risk or at the
soIe risk of those claiming under Lessee. Lessor sha11 no# he liable for any darnage to such
property or loss suffered by Lessee's business or business operations, which may be caused
by the bursting, overflowing or �eaking of sewer ar steam pipes, from water frorn any
source whatsoever, ar fram any heating fixtures, plumbing fixtures, electric wires, noise,
gas or odors, ar from causes of any other tnatter.
�.2. Maior Ret�aiurs to Eaiistin� Han�;ar.
With regard only ta Hangar W-1, Lessee wiXl be eligible for a rent credit in
accordance with this Section 5.2 for the following types of maintenance or repair projects:
(i} repairs or replacernent to the existing foundation where necessary to preserve the
structural integrity of the hangar; (ii) replacement of the existing roof or exterior walls of
the hangar; and (iu) replacement of existing i�eating, ventilation and air conditianing
systems serving the hangar. In arder to qualify for this retxt credit, Lessee shall first submit
aIl planis and specit"ications and estimates %r the costs for the proposed work, as well as
contractar names and other pertinent information, to the Directar. LTpon the Directar's {i)
written certificatiQn that the proposed project qualifies for a rent credit under this Lease and
(ii} written approval of the plans, specifications and cost estimates and ather requested
information (callectively, �he "Approved Plans"), Lessee may proceed with the project in
accordance wiih the standards and reyuirements set forth in Section 7 of this Lease. Each
month during any such project, Lessee shall su$mit to the Direcior paid invoices, cancel�d
checks and/or other documentation reasonably reyuired by Lessor to verify the actual
expenditures of Lessee for wark urtdertaken in accordance with the Approved Plans.
Hangar Lease with
Anthony Properiies
Wifhin ten {10) working days of receipt of such documentation, the Director shall notify
Lessee of any disalIawances, including, b�t not limited to, expenditures made for work tk�at
does not comply with or conform to the Approved Plans. Upon completion of the praject tn
Lessor's reasanable satisfaction, Lessor shall notify Lessee of (i} the fiill project costs
quali�ying for the rent credit and {ii) the fiill amount of the rent credit, which shall be eighty
percent (80°10) of the fu11 project cflsts qualifying for the rent credit (the "Rent Credit"}.
Beginning an the first day of the follawing month, Lessee will receive credit on a monthly
basis for an amount not to exceed fifty parcent (50%) of each monthly rental payment under
this Lease �antil Lessee has received the full amaunt of the Rent Credit. If this Lease is
renewed fo:r a Renewal Term, the Rent Credit will continue to be due and earned without
interruption. However, Lessee shall waive the full balance of any Rent Credii due he�reu�der
if {i) the City lawfully ternunates �his Lease in aceordance with its terms and conditions; (ii)
this Lease is �ot renewed �or a Renewal Term; or {iii) this Lease exgires.
�.3. Insuection,
In addition to the ri�hts of acces� �ranted by Lessee pursuant to Section 1.3, Lessar
shall have the right and privilege, thraugh its afficers, agents, servants andlar employees, to
inspect the Pr�rnises at any time during normal business hours. Lessor shall have the right
to perform any and all duties or obligations that Less�r is authorized or raquired to do t�nder
the terms of this Lease ar to perForm its governmental duttes under federal, state or local
rules, regulations and laws. Lessee will pertnit the F'ire Marshal of the City of Fort Wortl�
or authorized designees to inspect the Premises at any time during narmal busir�ess hours,
and Lessee wi11 comply vsrith all recommendations mad� to Lessee by the Fire Ma�shal or
authorized designee to br�ng the Premises into cornpliance with Fire Code and Building
Code provisions, as such provisions exist or naay hereafter be added or amended. Lessee
shall maintain in a proper condition accessible fire extinguishers of a number and type
approved by fire underwriters for the particular hazard involved. Lessor shall pravxde
Lessee wi�h advance notice af inspection when reasonable under the circumstances.
Notwithsfanding anything to the contrary in this Seetion 5.3, Lessor sha11 have the righ� to
inspect the Premises at any time and for any purpose in the event of an emergency.
Hangar Lease with
Anthvny Praperties
�.4. Performance.
If Lessee is responsible und�r this Lease for any maintenance or repairs, Lessor shall
notify Lessee in writing. Lessee agrees to undertake such maintenance or z'epair wark
di�ig�ently wiYhin thirty (30) calendar days follawing receipt of such notice. If Lessee fails
to undertake the recommended maintenance or repairs within this time, Lessor may, in its
discretion, undertalce such maintenance or repairs on behalf of Lessee. In this event, Lessee
will reimburse Lessor for the cost of the maintenance ar repairs, and such reimbursement
will be due on the date of Lessee's next monthly rent payment fallowing completion of the
maintenance or repaixs.
�.�. Environmental Remediation.
Lessee agrees that it has inspecied the Premises and is fully advised of its o�n rights
without reliance upan any representa�ion made by Lessor eoncerning the envi�:ronmental
condinon of tl�e premises. LESSEE, AT ITS SOLE COS�' AND EXPENSE, AGREES
THAT I7' ShIALL BE FULLY RESPONSIBLE FOR THE REMEI)IATI'ON OF ANY
VIDLATION OF ANY APPLICABLE FEDERAL, STATE OR L4CAL
ENVIRONMENTAL REGULATIONS OR STANDARDS THAT IS CAUSED BY
LESSEE, ITS OFFICER,S', AGE11rTS, SERVANTS, EMPLOYEES, CONTRACTORS,
SUBCONTRACTORS OR INVITEES Lessor shall be responsible far the remediation of
any violation of any applicable federal, state or local enviranrnental regulations that is
caused by Lessor, its offic�rs, agents, �ervants or employees. For any violation of any
applicable federal, state or laeal environmental regulations that is caused by a contractor o�
Lessor (other than Les�ee), a subcontractor, prior tenant or other third party, Lessor shall be
responsible for the remediation o#' the same or shall take all necessary steps to ensure that
the person or en�ity causing such violation remediates fhe same.
�.6. Le�see's Acceatance of Premises.
L�ssee accepts the Premises in its present conditi�n as satisfactary for all puiposes
set forth in this Lease.
6. DAN�GE OR DESTRUCTIaN T� PRElVII�E�.
In the event of fire or oiher casualty which damages or destroys a11 or any part of the
Premises, the following pravisions sha�l apply:
6.1. Covera�e bv Lessee's Insurance.
Lessee's property insurance, as reyuired by Section, 11.1 of this Lease, shall be
�rimary io any insurance on the Premises carried by Lessflr ar�d shall be used exclusively to
repair ar rebuild the daxnaged or destroyed portions of the Prencaises. Lessee shall be
respor�sible for o�ersight of all r�aairs or reconstruction on and to the Prernises and shall
repair ar rebuild the damaged or destroyed portions of the Premises to the size and
standards that meet or exceed the size and standards of such portions of the Premises prior
Hangar Lease r�+ith
Anthony Properties
to the damage or destruction. All repair and reconstruction activities carried out by ar on
behalf of Lessee shall be conducted in accc�rdance with Sections 7.2 through 7.6 a� this
Lease.
6.2. Premises Uninsured or Underinsured bv Lessee.
If' Lessee fails to carry adequate property insurar�ce in accardance with Section 11.1
of this Lease, Lessor, at Lessox's sote option, may (i) kerminate this Lease upon thirty (30}
days' advance written notice to Lessee or (ii) repair or rebuild the Premises substantially to
its former condition at Lessar's own cost a�d expense. If Lessor notifies Less�e in writing
within. tlairly (30) days following the date of damage or destruction that Lessor intends to
undertake the necessary repairs or reconstxuction, and the damage or destruction does nat
re�der the affected portion of the Premises untenable, tihis Lease sha11 continue in effect
wi.ihout any rent abatement whatsoever so long as Lessor diligently commences the repairs
or reconstruc�ior� within one hundred eighty (1 SO} days from the dafe of the da�mage ar
destruction. If the damage ar destruction does rend�r tlae affected portion of the Premises
tempararily untenabI�, or Lessor does not commence the repairs �r recanstru�tion within
one hundred ei�hty (180) days from the date af the darnage or de�truction, then for the
period of time hetween� suck� date and tl�e date a certificate of occupancy is issued for t1�e
po�tion of the Premises that was rendered untenable, rent shall be proportionally reduced by
the amount of square footage rendered untenable. Upan the issuance of a certificate of
occupancy and thereafter, rent shall comply with the Schedule of Rates and Charges in
effect at the timc as they apply to the Premises as improved by Lessor. In other words, if
Lessee was paying an unimproved ground rate and, pursuant to this Section b.2, Lessor
rep�ired or rebuilt an aircraft hangar originally constructed by Lessee, then the subseyuent
rental rate would not be that for unimproved land, but rather that wlxich appliecl to similar
hangar space at the Airport �.t the �irne,
i. COIiiSTRUCTION AND INiPROVElVIENTS.
i.l. In GeneraI.
Lessee may, at its sole discretion, perform modificatians, renovafions or
improvements on or to the Premises (collectively, "Improvemen�") so long as it first
submits a11 plans, specifications and estimates for the costs of the proposed work in writing
and also requests a,r�d receives in writing approval from the Director. Lessee cove�ttants and
a�rees that it sha11 fully comply with all prvvisions of this Section 7 in the undertaking o�
a�y such Impravements. Lessor shall take full title to any Improvements on the Prernises
upon th� expiration or earlier termination of this Lease, provided that trade �tures shall
rema�in the propert}r of Lessee and may be retnoved so long as Lessee repairs any damage
caus�d thereby.
7.�. Process for Apuroval of Plans.
Less��'s plans for Improvements sha11 conform to the Airport's arrchitectural
standards and must also reeeive written approval from Lessar's Departments of
Development, Engineering and Transportation/Public Works. AIl plans, specificatio:ns aa�d
Hangar Lease with
Anthony Properties
work shall conform to all federal, state and locallaws, ordinances, zules and regulations in
force at the tirr�e that the plans are presented for review.
7.3. Dacuments.
Less�e shall supply the Director with comprehensive sets �f documentation relative
to any Improt+ement, including, a� a mi;nimum, as-buili drawings of each project. As-built
drawings shall be new drawings or redlsne changes to drawings previously providecl to the
Director. Lessee shall supply the textual documezrtatian in coinputer format as requested by
Lessor.
7.4. Bonds Repuired of Lessee.
Prior to the commencement of any Improvement, Lessee shall deliver to Lessar a
bond, �xecuted by a corporate s�rety in accardance �n+ith Texas Government Code, Chapter
2253, as amended, in the full amount of each construction contr�.ct or project. T'k�e bands
shall guarantee (i) satisfactory compliance by Lessee with� alI appli�able requir�ments, terms
and conditions of this Lease, includin.g, but not lirnited to, the satisfactory complet�on of the
respective Ixnprovements, and (ri} full payments to all persons, firms, corparations or other
entities with whom Lessee has a direct relationship for fhe eonstruction of such
Irnprovemen�s.
In lieu of the rey�ired bond, Lessee may pravide Lessor wi#h a cash deposit or an
assignment of a eertificate of depo�i� in an amount �ual to 125% of the full amount of each
construction con�'act or praj�ct. If Lessee makes a cash deposit, Lessee shal� not be entitled
to any interest earned thereon. Certificates af depasifi shall be from a financial institution in
the Da11as-Fort Wortl� Metrapolitan Ar�a which is insureci by the Federal Deposit Inswrance
Co:rpora�on and acceptable to Lessor. The interest eamed on the certificate of deposit sha11
b� the property of Lessee and Lessor shall have no rights in such interest. Yf Lessee fails to
complete the respective Improvements, or if claims are filed by third parties on graunds
relating to such Irnprovements, Le�sor shall be entitleci to draw dawn the full amount of
L�58��'S cash deposit or certificate o� deposit and apply the proceeds to complete the
Improvements or satisfy the claims, provided that any balance shall be remitted to Lessee.
'�.�. Bonds Reauired o�Lessee's Cantractors.
Prior to ihe commencement of any Improvement, Lessee's respective contractor
sha11 exectate and deliver to Lessee sur�ty performance and payment bonds in aecordance
with the Texas Governrnent Cade, Chapter 2253, as amended, to cover the casts of all work
performed under such contractoz's cantract for such Improvements. Lessee shall provide
Lessar with copies af such bonds prior to the cornmencement of such Improvements. The
bonds shall guarantee (i) the faithful perfot-mance and completion of all constniction work
in accordance with the final plans and specifications as approved b3� Lessor and (ii} fu11
payment far a.�l wages for labor and services and of all bills for materials, supplies and
eyuipment used in the periarmanc� of the cons�ruction cantract. Such bonds shall name to
both Lessor and Lessee as dual obligees. If Lessee serves as its own contractor, Section 7.4
shall apply.
Hangar Lease with
Anthony Properties
fi.6. Releases bv Lessor UAon Comnletio� af Construction Work.
Lessor will allow Lessee a dollar for-dolla�' reimbursement from its cash deposit
accoux�t or xeduct�on of its claim upon Lessor's certificate of deposit upon (i), whez'e Lessee
serves as its own contractor, verifica�ion that Lessee has completed construction work or
(ii), where Lessee uses a con�ractor, receipt of the contractor's invoice and verificafion that
the cantractor has completed its work and released Lessee to the extent of Lessee's payment
for such work, including bills paid, affidavits and waivers of liens.
8. USE OF PREMISES.
Lessee hereby agrees to use the Premises solely for or in direct connection with the
provision of fixet� ba�e operatar ("FBO") services at the Airport. As a eondition precedent to
Lessee's author�za�ion to provide FBO services, an F'BO permit issued by the City must be valid
and in effect ("FBO Permit").
9. SIGNS.
9.1. Aircraft Movement Zane Si�.
Lessee, at Lessee's sole cos# and expense, sha11 install and maintain sigr�s by all
do�rways inside any hangar structure on the Prernises pernutting access to an aircraft
movement zone which ia�dicate that the area being enterred is located within an aircraft
movement zane. Lessor must approve in vvriting �he wording, size, appeaxance and locativn
of any such sign prior to installaiion.
9.2. Additianal5i�ns.
Le�see, at Lessee's sale expense and with th� prior written approval of the Director,
may install and maintain signs on the Premises related to Lessee's business opera�ions.
�uch signs, however, must be in keeping �v�i�h the size, calor, location and manner of
display of other signs at the Aiiport.
Hangar Lease with
Anthony Properties
9.3. IViaintenance and Remaval of Si�ns.
Lesses shall maintain all signs in a safe, neat, sight�y and physicalIy good condition.
Lessee agrees ta pay Lessor for any damage, injury or necessary repairs to �he Prernises or
other Airport property resulting from the installation, maintenance or r�moval af any such
sign. Lessee also agrees to re:move any sign at its own expense as soon as practicable
following a request for such r�moval from the Director.
10. RIGHTS AND RE5ERVATIONS OF LESS�R.
Lessor laereby retair�s fihe following rights and resetvations:
14.1. Lessee's rights hereunder shall be subject to all existing and future u�ility easements
and rights-of-way granted by Lessor for the installation, maintenance, inspection,
repair or removal of facilities owned or �pera�ed by eleetric, ga�, water, sewer,
communicatian or other utility companies. Lessee's rights additionally shall be
subject to all r�ghts granted by all ordinancas or statutes which a11ow such utility
companies to use publicly owned praperty far the provision of utility services.
]4.2. Lessor reserves the right to take any action it considers necessary to protect the
aerial approaches of �he Airport against obstn.tction, including, but not limit�l to,
the right to prevent Lessee fram erecting or perrnitting to be erected any building or
other structure which, in the opinion of Lessor, wauld limit the usefulness of the
Airport, constitute a hazard to air�raft or diminish the capability of existing or future
avigational or navigational aids used at the Airport.
10.3. Lessor reserves the right to ckose tempararily the Airport or any of its facilities for
maintenance, irnprove7n�nts, safety or security of either the Airport or the public, or
%r any othee cause deemed necessary by Lessar. In this event, Lessor shall in no
way be liable for any damages asserted by Lessee, including, but not limited to,
da�nages ftom an alleg�d disruption of Lessee's business operations.
10.4. This Lease sha11 be subordinate fo the provisions of any existing ar future agreement
between Lessar and the United States Govenunent which relates to the operarion or
maintenance of the Airport and is requirecl as a condition for the expenditure of
fec�.eral func�s for the development, maintenance or repaar of Airport infrastruchue.
10.�. During any war or natianal emergenc�, Lessor shall have the right to lease any part
of the Airport, including its Ianding area, to the United Stafes Gavernrnent. In thi�
event, any provisions of this instrument which are inconsistent with the provisions
o#'the lease to the Government shall be suspended. Less�r sha11 not be liable �ar any
loss or damages alleged by Lessee as a result of thi� action. Hawever, nothing in
this Lease shall prevent Lesse� from �ursuing any rights it ma� have for
reimbursement from the United States Government.
�langar Lease with 10
Anthony Proparties
10.6. Lessor covenants and agrees that during the term of this Lease it will operate and
maintain the Airport and its facilities as a public ai.z'port consistent w�ith and pursuant
ta the Sponsor's Assurances given by Lessar to the United 5tates Government
through the Federal Airport Act, a public document which is an file in Lessor's City
Secretary's Office and which is incorporated herein by reference for aIl purposes.
Lessee agrees that this Lease and Lessee's righis and privileges hereunder shall be
subordinate to the Sponsor's Assurances.
11. INSUIt�TCE.
111. Tvnes of Coverage and Limits.
Lessee shall pracur� and rnaintain a� all ti�nes, in fu11 force and effect, a policy or
polieies of insurance as specified in this Section 11, naming the City of Fart Worth as an
additional insured and covering a11 risks related to the leasing, use, occupancy, maintenance,
existence or location of the Premises. Lessee shall obtain #he following insurance coverage
at the limits specified herein:
o Pronertv:
Fire and Extended Cot�erage on alI improvemezits on ttke Premises at full replac�nent
cost limit;
* Commercial General Liabilitv:
$3,400,000 per occurrence,
including praducts and completed operations;
• Automobile Lia6ilitv:
$1,000,000 per accident,
including, but not limited to, coverage on any automobile used in Lessee's ape�rations on
the Premises;
� Han�arkeeuers Le�al Li�bilitv:
$1,400,000 per occurrence;
� Environ�nental Tmpairment Liabi�itv:
$1,000,000 per occutx'ence.
In addition, Lessee shal� be responsibl� for all insurance to constraction, improvemen�s,
modifications or renovations to the Prernises and for personal properiy af its ow� ar iz� its
care, custody or control.
11.2. Adiustments to Reaui�red Cavera�e and Lirn�its.
Hangar Lease with 11
Anthony Pro{�erties
Insurasice r�quirements, including additional types of coverage and increased limits
on eaeisting coverages, are subject fio change at Lessar's option if Lessor's risk manager
reasonably determines that additional co�erage or increased limits are necessary to cover
Lessee's operations at the Airport. Lessee will accordingly comply with such new
requirements witivn thirty (30) days following notice to Lessee.
1I.3. Cer�ificates.
As a condi�ian precedent fo the effectiveness af this Lease, Lessee shall furnish
Lessor with appxopriate certificates of insurance signed by the res�ective insurance
companies as proof that it has obtained the types and amQunts of insurance coverage
required herein. Lessee hereby eovenants az�d agrees that nat less than thirty {30) days prior
to the expiratian of any insurance policy required hereunder, it shall provide Lessor with a
n�w or renevwal certificate of insurance. In addition, Lessee sha11, at Lessar's rec�uest,
provide Lessor with ev:�dence that it �as maintained such coverage in full force and efFect.
1L4. Additional ReQuirements.
Lessee shall maintain its insurance with underwriters authorized to do business in
the �tate of Texas and which are satisfactory to Less�r. The policy or policies af insurance
sha11 be endo:rsed ta cover alI of Lessee's operations at the Airport and to pro�icie that no
material changes in coverage, including, bu� not limited to, cancellat�an, tennination, nan-
renewal or amenclment, shall be made withouY thirty {30) days' prior written notice to
Lessor.
12. INDEPENDEI�T CONTRACTOR.
7t is expressly understaad and agreed that Lessee shall operate as an independent cantractor
as to all rights and privileges gra�t�ted herein, and not as an agent, representative or emp�oyee of
Lessor. Lessee shall have the exclusiv� right to control the details of i�s aperations and ac�iviti�s on
the Premise� and sha11 be solely responsible for tl�e acts and omissions of its officers, agents,
servants, employees, contractors, subcontractors, patrons, licensees and invitees. Lessee
acknowledges that the doctrine of respandeat superior shall not apply as between L�ssor and
Lessee, its officers, agents, err�playees, contractors and st�bcontractors. Lessee further agrees that
nothing herein shall ba construed as the creation of a partnership or joint enterprise between Lessor
and Lessee.
13. LIABILITY AND INDEMNIFICATIOI�T.
LESSEE SHAL� BE LIABLE AND RESPONSIBLE FOR ANY CLAIMS, DEMANDS,
LAWSUTIS OR OTHER ACTIONS FOR DAII�'AGES OF ANY KIND, .�NCLUDING, BUT
NOT LIMITED TU, PR4PERTY L4SS, PROPERTY DAMAGE A1VD/OR �'ERSONAL
INJURY OF ANY gI1VD, INCLUDING DEATH, 7'D ANY AND ALL PERS�NS, OF ANY
KIND OR CHARACTER, WHETHER REAL QR ASSERTED, TO THE EXTENT' CA USED
BY THE NEGLIGENT OR WILLFUL ACT(S) OR OMISSI0IV(S} OF LESSEE, ITS
Hangar Lease with I Z
A�►thony Properties
OFF.ICERS, AGENTS, SERVANTS, EMPLOYEES AND/OR SUBLESS�ES. I1V ADDITION,
LESSEE, AT LESSEE'S OWN EXPENSE, SHALL INDEMNIFY, DEFEND AND HOLD
HARNfLESS LESSOR, I�5 OFFICERS, AGENTS, SERVANTS AND/OR EMPLOYEES,
FROM AND AGAINST ANY CL�I113T, LAWSUIT DR OTHER ACTI�N .F'DR DAMAGES OF
A�VY �1'ND, INCLUDING, BUT NOT L.IMITED TD, PROPERTY DAMAGE 4R LOS'S
(.INCLUDING ALLEGED DAMAGE OR LOSS TO LESSEE'S BUSINESS AND ANY
RESULTING LOS'7' PROFITS} AND/OR PERSONAL INJURY, INCLUDING DEATH, TO
ANY AND ALL PER501YS, OF A.NY �IND OR CHARACTER, WHETHER REAL OR
ASSERTED, TO THE EXTENT CA USED BY THE 1VEGLIGENI' OR WILL�`UL ACT(S) OR
OMISSIDN(S) �F LESSEE, ITS 4FFICERS, AGENTS, SERVANTS, EMPLOYEES
AND/OR SUBLESSEES.
LESSUR DOES NOT GtTARANTEE P4LICE PROTECTION TO I.ESSEE OR 1'TS
PROP�RTY. LESSOR IS OBLIGATED ONLY TO PROVIDE SECURITYADEQUATE TO
MAfNTAIN LESSOR'S CERTIFICATIUN UNDER FAA REGULATIONS. LESSEE
SHALL COMPLY WITHALL APPLICABLE REGULA7'IDNS OF THE FAA PERTAINIIVG
TO AIRPORT SECURITY ON 7'HE PRE1I��SES WHICH IS RELATED �'U LESSEE'S
OPERATIONS THEREON AND SHALL CO�PERATE WITH LESSO� IN THE
IMPLEIVIENTATION AND ENF4RCEMENT OF LESSDR'S SECURITY PLAN AT THE
AIRPORT, LESSEE S�YALL PAY ALL FINES 1'MPOSED BY THE FAA ON LESSOR OR
LESSEE RESULTIIVG FR�M LESSEE'S FAILURE TO COMPLY WITH SUCH FAA
REGULATIONS APPLICABLE TO THE PREMISES OR TO PREYENT UNAUTSORIZED
PERS'ONS OR PARTIES FROM THEIR OBTAINING ACCESS TO THE AIR OPERATIONS
flREA OF THE AIRPORT FROM THE PREMISES.
14. WAIVER OF CHARITABLE IMMUNITY OR EXEMPTIOI�T.
If Lessee, as a charitable association, corporatian, pat�nership, individual enterprise or
entity, claims immunity to or an exemprion from liability for any kind of property damage or
personal damage, injury or death, Lessee hereby expressly waives its rights #o plead defensively
any such smmunity ar exemption as against Lessor.
Hang�r Lease with 13
Anthany Properties
15. DEFAULT A1�TD REIVIEDIES.
1�.1. Failure bv Lessee to Pav Rent, Fees or Ot�er Char�es.
If Lessee iails ta pay any r�nt, fees or other charges due under this Lease, Lessar
shall deliver to Lessee a written invoice and notice to pay the invoice withiin ten (IO)
calenciar days. If Lessee fails to pay the balance outstanding within such time, Lessor shall
have the right to terminate this Leas�; immediately.
1�.2. Failwre ta Have or Maintain FBO Certification.
If Lessee's FBO Permit is lawfully revaked or lawfully not renewed, L�ssor shall
have tl�e right to terminate this Lease immediately upon provision of written notice to
Lessee.
15.3. Failure to Comnlv with Other Terms or Condifions.
If Lessee breaches nz' de�aults under any provision of t�is L�ase, ather than those
breaches ar defaults that are addressed by Seetions 15.1 and 15.2, Lessar shall deliver
written notice to Lessee specifying the nature of such breach or de�ault. Lessee shall have
thirty (30) calendar days follawing such written notice to cure, adjust or correct the problem
to the standard existin� priar to the breach. If Lessee fails ta cure the breach or default
within such time period, Lessor shall have the right to terminate this Lease immediai�ly;
provided, however, fhat in the event such breach or default cannot reasonably be cured
within thirty (30) calendar days following such written notice, Lessee shall not be in default
if Lessee cammences fo cure, adjust or cox-rect tl�e problern within snch thirty (30) day
period and fhereafter diligently and in good faith pursues such cure, adjustment or
correction to concIusion.
1�.4. Ri�hts of Lessor Upon Termination or Exniration.
Upon termination nr expiration of this Lease, all rights, pawers and privileges
granted ta Lessee hereunder shall c�ase and Lessee shali vacate the Premises. Within tvwenty
(20} days following the effective date of termination or expiration, Lessee sha11 rernave
from the Pren�ses all trade fixttu'es, tools, machinery, equipment, rnateri�ls and supplies
placcd on the Premises by Lessee pursuant to this Lease. After such time, Lessor shall have
the right �o take full possessian Qf the Premises, by force if necessary, and to remove any
and all parties and property retnaining on any part of the Premises. Lessee agrees that it
wil� assert no claim of any kind agains� LessQr, its agents, servants, empinyees or
representatives, which may stem from Lessor's lawful terminatior� of this Lease or any act
incident tq Lessor's assertion of its right to terminate or Lessor's exercise of any righks
granted hereunder, excludit�g such acts of Lessor's neglig�;nce which cau�e direct dama�es
to Lesse�.
16. NOTICES.
Hangar Lease wiih 1�4
Anthony Properties
Notices required pursuant to the provisians af this Lease shall be conclusively determined
ta have been delivered when (i) hand-delivered to the otl�er party, its agents, ernployees, seivants or
representatives, or (ii) deposited in ihe United �iates Mai1, postage prepaid, addressed as follows:
To LESSOR:
Far Rent:
City of Fort Worth
Revenue Office
100Q Throckmorton
Fort Wartk� TX 761 d2
To LESSEE:
Anthony Properties
Attn: R. Jay Anthony
12774 Coit Road, Suite 117D
Dallas TX 75251
With a Copy to:
3ames Kevin Flynn
Sch�ef & Stone, L.L.P. .
5956 Sherry Lane, Suite 14D0
Dallas TX 75225
17.
18.
ASSIGNMENT AllTD SUBLETTING.
17.1. In General.
For All Other 1Vlatters:
City of Fort Warth
Aviation Degartment
4201 N. Main St. Ste. 200
Fort Worth TX 7610b
Lessee sl�all not assign, sell, convey, su�lease or trar�sfer ar�y af its right�, privileges,
duties or interests gran.ted by this Lease without the advance written consent of Lessor,
which consent shall not be unreasonably withheld Qr delayed.
17.2. Conclitaons af Annroved Ass��nments and 5ubleases.
If Lessor consents to any assignment or sublease, all tenns, ccavenants and
agreements set forth in this Lease shall apply to the assignee or sublessee, and such assignee
or s�blessee shall be bound by the terms and conditions of this Lease �he same as if it had
o�iginally executed this L�as�. The failure or refusal of Lessor to appro�e a re�uested
assignment or sublease shall not relieve Lessee o� its obligations hereunder, including
payment ofxentals, fees and charges.
LIEllTS.
Hangar I.ease witl� I S
Anthotay Properties
1l�.1. Liens bv Lessee.
Lessee acknowledges that it has na authority to,engage in any act ar to make any
contract which may create or be #he foundation for any lien upon the property or inter�st in
the property of Lessor. If any such purported lien is created or filed, Lessee, at its sole cost
and expense, shall liquidate and discharge the same within thirty (30) days af �uch crea�ion
or filing. Lessee's failure to discharge any such purported lien shall constitute a breach of
thzs Lease and Lessar may tezminate th�is Lease upon thirfy (30) days' written notice.
However, Lessee's f�nancial abligation to Lessor to liquidate and discharg� such li�n shall
continue in effect following terinination of this Lease and until such a time as the lien is
discharged.
18.2. Landlord's Li�n.
IN ADD�TIDN TO ANY APPLICABLE STATTITORY LANDLORD'S �IEN,
LESSEE GRAN7'S TO LESSOR, IN ORDER TD SECURE PERFORN�ANCE BY
LESSEE OF ITS OBLICAT'IONS UNDER THIS AGREEMENT, A SECURITY
INTEREST IN ALL GOODS, INVENTORY, EQUIPM�NT, FIXTURES,
FURNITURE, IMPR4VEMENT,S, Ch�ATTEL PAPER, ACCUUNTS A� GENERAL
INTANGIB�ES, AND OTHER PERSONAL PROPERTY OF LESSEE NOW OR
HEREAFTER SITUATED ON OR I1V THE FREMISE,S OR OTHERWISE
RELATING T� LESSEE'S USE UF THE PREMISES, AND ALL PROCEEDS
THEREFROM (THE "COLLA Z'ERAL "). IF LL�'SSOR T'ERMIIVATES THIS
AGREEMENT FOR A FAILURE BYLESSEE TO PAYLESSOR RE1VT OR FOR A1V�'
OTHER BREACH OR DEFAULT BY LESSUR, �ESSUR MAY, IN .ADDITION T4
A�L OTHER REMEDIES, WITHOUT NOTICE OR DEMAND EXCEPT AS
PROVIDED BELOW, EXERCISE THE RIGHTS AFFORDED A SECURED PARTY
UNDER THE TEXAS UNIFOIIM COMME�CIAL C4D� ("UCC"). IN
CONNECTION WITH ANY PUBLIC OR PRIVA7E SALE UNDER ?'HE UCC,
LESSOR SHALL GIVE LESSEE FIYE (S) CALENDAR DAYS' PRIOR WRITTEN
NOTICE OF THE TIME AND PLACE OF ANY PUBLIC SALE DF THE
COLLATE�AL OR OF THE TIME AFTER 6YHICH ANY PRIVAT'E S`ALE OR
OTHER INTENDED DISPOSITIOIV THEREOF IS TO BE MADE, WHICH IS
AGREED TO BE A REASONABLE NOTICE OF SUCH SALE OR DISPOSITIQN.
Upon Lessor's advance u+ritten consent, which shall not be unreasonably withheld or
delayed, Lessor's security in�erest in the Callateral may be subordinated to a third party
lender if the lender demands such subordination as a condition of financing Improvements
undertaken by or on behalf of L�ssee.
19, TAXES AND ASSESSI�'IENTS.
Lessee agrees to pay aziy and all federal, state or local t�es or assessments which
may lawfuIly be levied against Lessee due to Lessee's use or oecupancy of the Pr�mis�s or
any improvements or property placed on the Premises by Lessee as a result of its
accupancy. Lessee also agrees to pay any and aIl federal, state or Iocal ta7ces or assessments
which may 1a�vfully be levied against Lessor due to Lessee's use or occupancy of the
Premises or property placed on the Premises by Lessee as a result o�' its accupancy,
Hangar Lease with 16
Anthony Properties
inc�urling, but not limited to, the Mandatozy Ix�pravements and any Discretionary
Improvemet�ts.
20. C011�IPLIANCE WITI3 LAWS. ORDINANCES, RULES Al�iD REGULATIONS.
Lessee covenants and agrees that it sha11 not engage in any unlawful use of the Premises.
Lessee furthez� agrees that it shall not permit its officers, age:n�s, servants, employees, contractors,
subcontractors, patrons, licensees or invitees to engage in any unlawfiil use of the Premises and
Lessee unmediately sha11 remove from the Premises any person engaging in such unlawful
activities. Unlawful use af the Premises by Lessee itself shall constitute an immediaie breach of
ihis Lease.
Lessee agrees ta camply with all federal, state and local laws; all ordinances, rules and
regulations of Lessor; all rules and regulations established by the Director; and all rules and
regulations adopted by the City Council pertaining to the conduct required at airports owned and
operated by Lessor, as such laws, ordinances, rules and regu�atians exist or �nay hereafter be
amended or adopted. If Lessor notifies Lessee or any of its officers, agents, employees, contractars,
subcontractors, licensees or ir�vitees of any violation of such laws, ordinances, rules a:r regulations,
Lessee shall immediately desist frorn and correct the violation.
�1. NON-DISCRIlVIIllTATION COVENANT.
Lessee, fnr itself, its personal representatives, successors in interest and assigns, as part af
the consideration herein, agrees as a covenani runnin� with the land that no person shall be
excluded from participation in or denied the benefits of Lessee's use of the Premises on the basis of
race, color, national or�gin, religian, handicap, sex, sexual orienta�ion or familial status. Lessee
fiirther agrees far itself, its personal representatives, successors in interest and assigns that no
person shall be excluded fram the provision of any services an or in the construction of any
impro�ements or a�terations to the Premises on graunds of race, color, national origin, refigion,
haridicap, sex, sexual orientation or familial status. Lessee agrees to furnish its accommodations
a�d to priee its goods and services an a fair and equal basis to all persans. In addition, Lessee
cnvenants at�d agrees fhat it will at all tirnes comply with any requirements imposed by or pursuant
to Title 49 of the Code of Federal Regulations, Part 21, Non-Diserimination in Federally A�sisted
Programs of the Department of Transpartatian and with any amerndments to this regulation which
may hereafter be enacted. If any claim arises from an alleged violation of this non-discrimination
covenani by Lessee, its personal representatives, successors in interest ar assigns, Lessee agrees to
indemniiy Lessar and hald Lessor harmless.
�2. LICENSE5 AND PER1ViIT5.
Lessee shall, at its sale expense, obtain and keep in effect all licenses and permits ne�essary
for the operation of its oparations at the Airport.
23. GOVERNMENTAL POWERS.
Hangar Lease with 17
Anthony F'roperties
It is understaod and agreed that by exacution of this Lease, Lessor does not waive or
surrende�r any of its gavernrx�ental powers.
�4. NO WAIVER.
Tkae failure of either party to insist upon the perfnrmat�ce a� any tezm or provi�ion of this
Lease or to exercise any right granted herein shall not canstituie a waiver of that party's rigt�t to
insist upon appropriate performance ar to assert an� such right on any fijture occasion.
2a. VENUE A1�TD d[JRISDICTION.
If any action, whether real or asserted, at law or in equity, arises on the basis of any
pro�ision af this Lease or af Lessee's operations on the Premises, venue for such action shalI lie in
state courts located in Tarrant County, Texas or ihe United States District Caurt for the Narthern
Distriet of Texas, Fort Worth Divisivn. Th�s Lease shail be construed in acc�rdance with the laws
ofthe State afTexas.
�6. SEVERABILITY.
If any provision of this Lease shall be held to be invalid, illegal or unenforceable, the
validity, lega.lity and en�Forceability oi the remaining pravisions shall nat in any way be afFected or
impaired.
�������/�I��i _��
Lessor and Lessee shall exercis� every reasonable effort to meet their respective obliga�ions
as set forth in this Lease, but shaIl not be held liable for any delay in or omission of performance
due ta force majeure or other causes beyond their reasonable control, including, but not limited ta,
compliance with any government law, ordinance or regulation, acts oi God, acts of omission, fires,
strikes, lockouts, natiQnal disasters, wars, riots, material or labor restrictions, tra.nsportation
problems a�d/or any ottxer cause beyond the reasonable control ofLessor ox Lessee.
�8. HEADING� NOT CONTROLLING.
Headings and titles used in this Lease are far reference purposes only and shall nat be
deemed a part of this Lease.
29. ENTIRETY OF AGREEMENT.
This written instrument, ir�cluding any documen�s attached hereto or incorporated herein by
ref�rence, contains the entir� understanding and agreement between Lessar and Lessee, 1fS a551�5
Hangar Lease with 1$
Anthony Properiies
and successors in interest, as to the matters contained herein. Any prior or cantemporaneous aral or
written agreernesit is hereby declared nu11 and void to the extent in canflicf with any provisioz�s of
tlus Lease. The terms and conditions of this Lease sha1l not be amended unless agreed to in writing
by both parties and approved by the Cxty Council of Lessor.
IN WITNE WHEREOF, the parties hereto have executed this Lease in multiples, this
� day of , 2002.
�
CITY OF FORT �VORTH:
:
ATTEST•
B ` -
Y= .�-
City Secretary
_ f �_ �!� '
_ �.�,.: � � � I � ._ ,_ _�
Cantract Authorization
_ _ Jl`�cl Q�..�_ — --
Date
Hangar L,ease with
Anthony Properties
AP AVIATIOIiT PROPERTIES LIMITED
PARTNERSHIP:
By: AF Auiation, Inc.,
its sole General Partner;
By: IB�� � �i�--
Brian Shiu
Vice President of Development
ATTEST:
By: ,�.- �� �-.�,r���'-,
.�cCre�c�n�
� ���h ' �1��
19 � �� •1-f ,
�;�U�f e��6� �
1, �c^ nnr.n�}� ��} r
, ��t
APPROVED AS TU FORM AND LEGALITY:
:i�' �-�- ."�.
Assistant City Attorn�i
M & C: L-13315 �G-04-02
Hangar Lease with 20
Anthony Properties
STATE OF TEXAS
COUNTY OF I
BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on
this day personally appeared Brian Shiu, Vice President of Development of AP Aviation, Inc.,
lcnown to me ta be the person whose name is subscrib�d to the faregoing instrument, and
acknowledged to me that th� same was the act of AP Aviation Properties Limited Partnership and
that he executed the same as the act of AP Aviation Properties Limited �artnership for the purposes
and consideratian therein e�pressed and in th� capaci�+ therein stated.
GIVEN UNDER MY HAND AND SEAL �F OFFICE this � day of ,
2Q02.
��� Ch+istf�e Johnsan .
���,�j,y� � ��nlssion ExQires .
�,�{,4� ,lanuarY 29� 2046
-- Notary Public in and for the tate of Texa�
�TATE OF TEXAS §
C�LJNTY aF TARRANT
BEFORE ME, the undersigned authority, a Nota�y Public in and for the Sfiate a� Texas, vn
this day personally appeared Marc Ott, known to me to b� th� person whose �ame is subscribed to
the foregoing instrument, and acknovwledged to me that the same vwas the act of the City of Fort
Worth and that he executed the same as the ack of the Ci�y of Fart Warth for the purposes and
consi�leration therein expressed and in the capacity therein stated.
�
GIVEN LTNDER MY HAND AND SEAL OF OFFIGE this O�y day o ,
20Q2.
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.� sa"'hrifiii+��r ���►IyI�B�a8Q3ires
...�� �,� �
o#ary Public in and for the State of Texas
Hangar Lease with
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EXHIBIT ��B"
EOUIPMEIiiT LICENSED FOR LESSEE'S USE
I NUMBER
�
��
DE5CRIFTION
Tractar Tug (Aircraft)
Tractor Tu� (Aircraft)
Millipore Fuel Samplin� Kit
Flammable Starage Locker
Jacobsen Utiiity Vehicle
Foxcart GPU
Air Compressor and Portable Air Tank
Hangar Lease with 22
AntE�nny Properties
SERIAL NO.
600-0015
600-Q012
N/A
008603P
1030010
N/A
City of'�or�. �orth, Texas
I�ayar and Coun�i[ Cor�n�unic��ion
I]AiE REFERENC� NUMBER �OG NAME pq��
6/4102 **�,o� �3� g� 55FB0 i 1 of 2
suB��cT AUTHORiZE LEASE AGREEMENTS WITH ANTHONY PROPERTIES FQR F1XED
BASE �PERATOR SERVICES AT �ORT WORTH SPINKS ARRPORT
RECOMM�NDATION:
l� is recommended that the Ciiy Councif:
Author�ze the City� Manager to issue a Fixed Base Op�rator permit to �Anthony Properties for
operatian of a Fixed Base Operat�r fia�ility at Fort Worth 5pinks Airport; and
2. Execute an Office Lease Agreement wEtF� Anthony Properties for 144 square fieet of praperty in the
Fixed Ba�e Operatar Hangar at Fort Worth Spinks Airp�rt; and
3. Execute a Hangar, Associated Ramp and Tie-down Spaces Lease Agre�m�nt with Anthony
Properties at Fort Worth 5pinlcs Airport; and
4. Execute a Fu�l Farm Lease Agreement with Anthony Properties �or 6,500 square feet of adjacent
pro�er�y at Fart �Workh Spinks Airp�rt.
❑ESCUSSION:
Anthany Properties, through its Vice�Pre�ident af Operatians, B�ian 5hi�, proposes to 6egin Fix�d Base
Operator services at Fort Worth Spin�s Airpo�t. The City currently p�avides these services, and with
this action, will transition the provision af the services to Anthany Properties on July 1, 2Q02. In arder to
accomplish this, the failawing agreements are necessary;
� Fixed Base pp�ratar (FBO) Permit: Anthony Propertj�s requests an F80 permit for the right to sell
fuel and p�avide other F6� services at Fart Warth S�inEcs Airport. The term of the permit will begin
on July 1., 20D2, and expire J�ne 30, 20�7. The permit will automaticalfy �enew for another � year
-t�rm if Anthony Properties is performing such services in compliance witi� th� Aviatian �epartment's
FB� Mir�imum 5tandards then ir� effect; and .
An. Office Lease for 144 s�uare feet of affice s�ace in the current FBO. Hangar. In order to begin
�BO SBNIGES, Anthany Proper�ies has proposed to lease 144 sq�are faet of property in the FBO
Hangar #hat includes�the service counter and associated s�ace currentfy �sed by the City to provide
#he �BO services, The initial annual re�er�u� fram this lease will be $1,782.72, or $1�48.56 per
manth. � T�e term of tY�is lease wil! begin on July 1, 2002, and expire on the date that Anthony
Properties begins operation in their hangar ta be built north of the existing hangar. At tF�at �ime, the
space will revert ta tt�e City wh�ch wi�I be fr�� far lease ta anather party. During the time that
Anthany ProParties leases the office space, they agree ta be fully respansible 'for custodial and
management duties associated wiih th� common areas in #h� hangar, including th� lobby, hallway,
res#roams, and kitchen, and
�'�ty of'Fo�t b�orth, Texas
M�yor a�d Counc�l Cor�r�u�ic��tion
DAiE REFERENC� NUMB�R LOG NAM� PAGE
s�41o2 **L-� 331 � ��FBo f z o� 2
sue��cr AIJTHOREZE LEASE AGR EMENTS WITH ANTHONY PROPERTIES FOR FIXED
BASE OPERAT�R SERVICES AT �ORT WORTH SPINKS AIRPORT
A Hangar Lease Agreement for the 10,000 square�fooi hangar, 39,000 sq�aare feet of ramp space,
and 20 aircraft tie-down spaces. The initial annu�l reven�e fram the f�angar will be $13,8D0.00, or
$1,150,Q0 per rnonth. The initial revenue from the ramp wil) be $7,80Q.00, or $fi5p.Q0 per month.
The aircraft tie-downs will yield $10,080.00 annually, or $84D.00 per month. The to#al an�ual
revEn�e from fhis lease will be $31,680.OQ, or $2,840,0� per month. The t�rrn of the Eease will
�egin on July 'I, 2002, and expire �fune 30, 2�07. The lease will automatically re�ew fQr anotF�er 5
year term if Anthony Properties is in complianc� wi�h the MinEmum Standards then in effec#. The
lease wiil be subject to an annual increase to reflect tF�e upward percentage change in the
Consumer Price ]ndex for the preceding year; and
A Fuel Farm Lease with 6,50U square feet af improved pro�erty. Anthany Properties will lease the
fue[ farm at the current prevailing rate of $273.fi9 per month, or $3,284.28 on an annual basis.
They will also lease fi,500 sq�are feet of improved property adjacent to the fuel farm fot the
installatian �f a self-s�rve fueling facili#y. The inifiai revenue from this lease will be $1,300.a0 per
year, or $108.33 per manih. The term of the �ease will be fram July �, 2�02, to June 30, 2D07, and
will aufomatically renew if Ant�ony Properties �s in compliance wit1� the Minimum 5tandards as they
appiy ta FBO operators. The lease will be subject to an annuaf increase to reflect the upward
percentage cha�ge in the Consumer Price Index for the preceding y�ar. TF�is �ease wi[I be 9n
eanjuncfian with the FBO �ermit. If that permit st�ould be revo[ced for any reasan, this lease will
became null and �void.
The tntal annual revenue from these fease agreem�nts will be $38,046.96, or $3,17�.58 or� a monthly
basis. The revenue fram Juky 9, 2002, to the end of �iscal Year 2�D9-2002 will �e $9,511.74.
FiSCAL �NFORMATIONICERTIFICATION:
TY�e �inance Director ce�t�fies that the�Rev�nue �ffice of the Finance Department will be responsi6le for
the collection anr� depasit of funds due to the City und�r these agreements.
BG:n
Suhmitted for City Maaager's
Office by:,
Bridgette Garrett (Acting)
Originating Department Fiead;
Lisa A. Pyles
6140
saa�
�'UND I ACCOUNT � C�NTER • f AMOUNT
(tQ) �
PE40 4813'f2 0552002 $3,$95.65
PE40 4994'i2 0552002 $2,771.07
PE40 4914T2 0552QQ2 $2,520.D0
PE4D 491052 p5520p2 $ 324,99
(from)
CITY SECRETARY
1
�
�
APPROVED 06J44102
Additional Information Co�tuct:
Lisa A. Pyles 5403