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HomeMy WebLinkAboutContract 62142CSC No. 62142 FORT WORTH SPINKS AIRPORT GROUND LEASE AGREEMENT LEASE SITE E-21 AND E-22 TEXAS SKY HARBOR LLC This GROUND LEASE AGREEMENT ("Lease") is made and entered into by and between the CITY OF FORT WORTH ("Lessor" or the "City"), a home rule municipal corporation organized under the laws of the State of Texas, acting by and through Valerie Washington, its duly authorized Assistant City Manager, and TEXAS SKY HARBOR LLC. ("Lessee"), a Texas corporation, acting by and through DANIEL GRIFFITH, its duly authorized Manager. In consideration of the mutual covenants, promises and obligations contained herein, the parties agree as follows: 1. PROPERTY LEASED. Lessor hereby demises to Lessee a total of 37,313 square feet of ground space for E-21 and 38,789 square feet of ground space for E-22 ("Ground"), at Fort Worth Spinks Airport ("Airport") in Fort Worth, Tarrant County, Texas, collectively identified as Lease Site E-21 & E-22, ("Premises"), as shown in Exhibit "A", attached hereto and hereby made a part of this Lease for all purposes. 2. TERM OF LEASE. 2.1. Initial Term. The Initial Term of this Lease shall commence on the date of execution ("Effective Date") and expire at 11:59 PM (30) thirty years following the Effective Date, unless terminated earlier as provided herein. 2.2 Renewals. If Lessee performs and abides by all provisions and conditions of this Lease, upon expiration of the Initial Term of this Lease, Lessee shall have one (1) option to renew for an additional (10) ten year term (a "Renewal Term"). In order to exercise an option to renew, Lessee shall notify Lessor in writing of its desire to renew this Lease no less than ninety (90) days and no more than one hundred eighty (180) days prior to the expiration of the Initial Term. 2.3. Holdover. If Lessee holds over after the expiration of the Initial Term or any Renewal Term, this action will create a month -to -month tenancy. In this event, for and during the holdover period, Lessee agrees to pay all applicable rentals, fees and charges at the rates provided by Lessor's Schedule of Rates and Charges or similarly published Texas Sky Harbor, LLC — Lease Sites E•21 and 1r22 Ground Lease Agreement OFFICIAL RECORD Fort Worth Spinks Airport CITY SECRETARY Pagel of29 FT. WORTH, TX schedule in effect at the time of the Holdover. The hangar rate will be adjusted to equal the then Fair Market Value, as determined by Lessor's market analysis. In no case shall the hangar rate be less than the value assessed upon completion of a property appraisal completed by a third party vendor that has been approved and secured by Lessor. A ten percent (10%) increase will be added to the Fair Market Value rate until a new lease agreement is approved and executed. The holdover period will not exceed six (6) months from the time the current lease agreement expires. Upon the expiration of the holdover period, the City may exercise all legal rights and remedies available, including but not limited to eviction. 3. RENT. 3.1. Ground Rate. E-21 Lessee shall commence the payment of rent for the Ground on the Effective Date. Lessee hereby promises and agrees to pay Lessor, as annual rent for the Ground, Eleven Thousand Five Hundred Sixty -Seven Dollars and 03/100 ($11,567.03), at a rate of current rate ($0.31) per square foot, payable in equal monthly installments of Nine Hundred Sixty -Three Dollars and 92/100 ($963.92). E-22 Lessee shall commence the payment of rent for the Ground on the Effective Date. Lessee hereby promises and agrees to pay Lessor, as annual rent for the Ground, Twelve Thousand Twenty -Four Dollars and 59/100 ($12,024.59), at a rate of current rate ($0.31) per square foot, payable in equal monthly installments of One Thousand Two Dollars and 05/100 ($1,002.05). 3.2. Rate Adiustments. 3.2.1. Consumer Price Index Adiustments. The rental rates under this Lease are based on Lessor's current published Schedule of Rates and Charges. Rental rates are subject to increase beginning October 1, 2024, and on October 1 st of any subsequent year during the Initial Term and any Renewal Term, to reflect any upward change in the Consumer Price Index for the Dallas/Fort Worth Metropolitan Area, as announced by the United States Department of Labor or successor agency (i) for the first increase, since the Effective Date of this Lease and (ii) for each subsequent increase, since the effective date of the last increase (the "Annual Rent Adjustment"); provided, however, that Lessee's rental rates shall not exceed the then -current rates prescribed by Lessor's published Schedule of Rates and Charges. Texas Sky Harbor, LLC — Lease Sites E-21 and 1r22 Ground Lease Agreement Fort Worth Spinks Airport Page 2 of29 3.2.2. Five -Year Adjustments, Ground Rate. In addition to the Annual Rent Adjustments, on October 1, 2029, and every fifth (5th) year thereafter for the remainder of the term of the Initial Term (i.e. on October I" of 2034, 2039, 2044, 2049, 2054), the Ground rental rate shall automatically be adjusted to equal the then -current rates prescribed by the Schedule of Rates and Charges. 3.3. Payment Dates and Late Fees. Monthly rent payments are due on or before the first (1st) day of each month. Payments must be received during normal business hours by the due date at the location for Lessor's Aviation Department set forth in Section 15. Rent shall be considered past due if Lessor has not received full payment after the tenth (loth) day of the month for which payment is due. Without limiting Lessor's termination rights as provided by this Lease, Lessor will assess a late penalty charge of ten percent (10%) per month on the entire balance of any overdue rent that Lessee may accrue. 4. CONSTRUCTION AND IMPROVEMENTS. 4.1. Mandatory Improvements. As additional security for this Lease, Lessee covenants and agrees that it shall construct the improvements set forth below on the Premises owned by the City of Fort Worth. The improvements approved shall be referred to as "Mandatory Improvements", as referenced in Exhibit "B". 4.1.1. Phase I - Lessee shall commence construction within nine (9) months following the execution of this Lease. Construction and issuance of a Certificate of Occupancy of a six (6) bay 50'X50' box hangar unit, and an approximately associated apron and vehicle parking spaces shall be completed no later than twenty- one (21) months after construction commenced. 4.1.2. Phase II - Lessee shall commence construction within six (6) months following the completion of Phase I. Construction and issuance of a Certificate of Occupancy of a twelve (12) bay t-hangar unit, and an approximately associated apron and vehicle parking spaces shall be completed no later than twenty-four (24) months after construction commenced. 4.1.3. Lessee shall complete the Mandatory Improvements according to the Project Schedule ("Schedule"), as identified in Exhibit "134". For each major task on the Schedule, Lessee shall provide, at a minimum, a 24-hour advance notice of commencement. 4.1.4. At the completion of construction, Lessee shall provide to the Lessor: a copy of the Certificate of Occupancy, a complete set of Record Drawings and/or As -Built Drawings in Adobe PDF and AutoCAD formats, and a Summary of the total cost/value of the Mandatory Improvements. Texas Sky Harbor, LLC — Lease Sites E-21 and E-22 Ground Lease Agreement Fort Worth Spinks Airport Page 3 of29 Lessee shall fully comply with all provisions of this Section 4 in the performance of any such Mandatory Improvements. Should construction not be completed as evidenced by the issuance of a Certificate of Occupancy within the applicable time period set forth above, Lessee shall be in default of this Lease and Lessor shall terminate Lessee's rights to the Premises in its entirety. In the event that Lessor and Lessee agree to deviate from the terms, provisions, specifications or conditions of this Lease in any way, an Amendment to the Lease shall be signed and dated by both Lessor and Lessee and shall be attached to and made a part of this Lease and shall supersede the previous terms, provisions, and specifications as specifically identified. Upon issuance of the Certificate of Occupancy Lessor shall take full title to the Mandatory Improvements on the Premises. The commencement and completion dates in this Section 4.1 are subject to the provisions of Section 27 below, and any delay by reason of force majeure shall result in a day -for -day extension of the period for performance, provided that the party is diligently and continuously pursuing in good faith a remedy to the delay during such time. 4.2. Discretionary Improvements. Lessee may, at its sole discretion, perform modifications, renovations, improvements or other construction work on or to the Premises (collectively, "Improvements") so long as it first submits all plans, specifications and estimates for the costs of the proposed work in writing and also requests and receives in writing approval from the Director of Aviation or authorized representative ("Director"). Lessor agrees to respond in writing to Lessee's requests for approval within thirty (30) calendar days of receipt of such requests. Lessee covenants and agrees that it shall fully comply with all provisions of this Section 4 in the undertaking of any such Improvements. Lessor shall take full title to any Improvements on the Premises upon the expiration or earlier termination of this Lease, provided that trade fixtures shall remain the property of Lessee and may be removed so long as Lessee repairs any damage caused thereby. 4.3. Process for Approval of Plans. Lessee's plans for Improvements shall conform to the Airport's architectural standards and must also receive written approval from the City's Departments of Planning and Development and Transportation and Public Works. All plans, specifications and work shall conform to all federal, state and local laws, ordinances, rules and regulations in force at the time that the plans are presented for review. 4.4. Documents. Lessee shall supply the Director with comprehensive sets of documentation relative to any Improvement, including, at a minimum, as -built drawings of each project. As - built drawings shall be new drawings or redline changes to drawings previously Texas Sky Harbor, LLC — Lease Sites E-21 and E-22 Ground Lease Agreement Fort Worth Spinks Airport Page 4 of 29 provided to the Director. Lessee shall supply the textual documentation in computer format as requested by Lessor. 4.5. Bonds Required of Lessee. Prior to the commencement of any Mandatory Improvement or Improvement, Lessee shall deliver to Lessor a bond, executed by a corporate surety in accordance with Texas Government Code, Chapter 2253, as amended, in the full amount of each construction contract or project. The bond shall guarantee (i) satisfactory compliance by Lessee with all applicable requirements, terms and conditions of this Lease, including, but not limited to, the satisfactory completion of the respective Improvements, and (ii) full payments to all persons, firms, corporations or other entities with whom Lessee has a direct relationship for the construction of such Improvements. In lieu of the required bond, Lessee may provide Lessor with a cash deposit or an assignment of a certificate of deposit in an amount equal to 125% of the full amount of each construction contract or project. If Lessee makes a cash deposit, Lessee shall not be entitled to any interest earned thereon. Certificates of deposit shall be from a financial institution in the Dallas -Fort Worth Metropolitan Area which is insured by the Federal Deposit Insurance Corporation and acceptable to Lessor. The interest earned on the certificate of deposit shall be the property of Lessee and Lessor shall have no rights in such interest. If Lessee fails to complete the respective Improvements, or if claims are filed by third parties on grounds relating to such Improvements, Lessor shall be entitled to draw down the full amount of Lessee's cash deposit or certificate of deposit and apply the proceeds to complete the Improvements or satisfy the claims, provided that any balance shall be remitted to Lessee. 4.6. Bonds Required of Lessee's Contractors. Prior to the commencement of any Mandatory or Discretionary Improvement, Lessee's respective prime contractor shall execute and deliver to Lessee surety performance and payment bonds in accordance with the Texas Government Code, Chapter 2253, as amended, in the amount of the respective contract price to cover the costs of all work performed under such contractor's contract for such Improvements. Lessee's prime contractor shall also furnish a maintenance bond in an amount equal to the contract price as security to protect Lessor against any defects in any portion of the improvements. The maintenance bond shall remain in effect for two (2) years after the date of final acceptance of the improvement by the Lessor. Lessee shall provide Lessor with copies of such bonds prior to the commencement of such Improvements. The bonds shall guarantee (i) the faithful performance and completion of all construction work in accordance with the final plans and specifications as approved by Lessor and (ii) full payment for all wages for labor and services and of all bills for materials, supplies and equipment used in the performance of the construction contract. Such bonds shall name both Lessor and Lessee as dual obligees. If Lessee serves as its own contractor, Section 4.5. shall apply. Texas Sky Harbor, LLC — Lease Sites E-21 and E-22 Ground Lease Agreement Fort Worth Spinks Airport Page 5 of29 4.7. Releases by Lessor Upon Completion of Construction Work. Lessor will allow Lessee a dollar -for -dollar reimbursement from its cash deposit account or reduction of its claim upon Lessor's certificate of deposit upon (i), where Lessee serves as its own contractor, verification that Lessee has completed construction work or (ii), where Lessee uses a contractor, receipt of the contractor's invoice and verification that the contractor 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. 5. USE OF PREMISES. Lessee hereby agrees to use the Premises solely for aviation -related purposes only and strictly in accordance with the terms and conditions of this Lease. Lessee shall have the right to sublease portions of the Premises, including the entire hangar, to various third parties ("Sublessees") for aviation -related purposes only under terms and conditions acceptable to and determined by Lessee., provided that all such arrangements for subleases with a term greater than five (5) years shall be in writing and approved in advance by Lessor. All written agreements executed by Lessee to Sublessees for any portion of the Premises shall contain terms and conditions that (i) do not conflict with Lessee's duties and obligations under this Lease; (ii) incorporate the terms and provisions of this Lease; (iii) restrict the use of the Premises to aircraft storage or other aviation or aviation -related purposes acceptable to Lessor; and (iv) treat users of the same or substantially similar facilities in a fair and non- discriminatory manner. Lessee shall use a standard lease form for all Sublessees and shall submit a copy of such standard lease form, including rental rates ,without regard to lease terms, to the Director prior to Lessee's execution of its first lease and from time to time thereafter following any material changes to such lease form, including, without limitation, any changes to Lessee's rental rates for portions of the Premises. Lessee may make non- material modifications to its standard lease to the extent that such are not contrary to Lessor's Sponsor's Assurances. 6. REPORTS, AUDITS AND RECORDKEEPING. Lessor reserves the right to require Lessee to -provide Lessor with a written annual report, in a form acceptable to the Director, that reflects Lessee's rental rates for any subleases of the Premises in the immediately preceding calendar year. If required, such written annual report shall be provided to Lessor within thirty (30) days following the end of the preceding calendar year. Lessor may request, and Lessee shall promptly provide, similar reports on a more frequent basis that reflect Lessee's rental rates for the period requested by Lessor. These reports shall be delivered to Lessor's Department of Aviation at the address provided in Section 15. In addition, Lessee shall keep and maintain books and records pertaining to Lessee's operations at the Airport and other obligations hereunder in accordance with Lessee's current basis of accounting or, if Lessee changes such basis, in a manner satisfactory to Lessor's Internal Auditor and at a location within the City of Fort Worth. Lessee's basis of accounting will be deemed to be to the satisfaction of Lessor's Internal Auditor if it is in compliance with industry standards or generally accepted accounting principles. Upon Lessor's request and following reasonable advance notice, Lessee will Texas Sky Harbor, LLC — Lease Sites E-2 r and E-22 Ground Lease Agreement Fort Worth Spinks Airport Page 6 of 29 make such books and records available for review by Lessor during Lessee's normal business hours. Lessor, at Lessor's sole cost and expense, shall have the right to audit such books and records in order to ensure compliance with the terms of this Lease and the Sponsor's Assurances made by Lessor to the Federal Aviation Administration. 7. UTILITIES. Lessee, at Lessee's sole cost and expense, shall be responsible for the installation and use of all utility services to all portions of the Premises and for all other related utility expenses, including, but not limited to, deposits and expenses required for the installation of meters. Lessee further covenants and agrees to pay all costs and expenses for any extension, maintenance or repair of any and all utilities serving the Premises. In addition, Lessee agrees that all utilities, air conditioning and heating equipment and other electrically -operated equipment which may be used on the Premises shall fully comply with Lessor's Mechanical, Electrical, Plumbing, Building and Fire Codes ("Codes"), as they exist or may hereafter be amended. 8. MAINTENANCE AND REPAIRS. 8.1. Maintenance and Repairs by Lessee. Lessee agrees to keep and maintain the Premises in a good, clean and sanitaiy condition at all times, reasonable wear and tear excepted. Lessee covenants and agrees that it will not make or suffer any waste of the Premises. Lessee, at Lessee's sole cost and expense, will make all repairs or replacements necessary to prevent the deterioration in condition or value of the Premises, including, but not limited to, the maintenance of and repairs to all hangars and other structures, doors, windows and roofs, and all fixtures, equipment, hangar modifications and surrounding pavement, grass and weed management on the Premises and adjacent easement. Lessee shall be responsible for all damages caused by Lessee, its agents, servants, employees, contractors, subcontractors, licensees or invitees, and Lessee agrees to fully repair or otherwise cure all such damages at Lessee's sole cost and expense. Lessee agrees that all improvements, trade fixtures, furnishings, equipment and other 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 sole risk of those claiming under Lessee. Lessor shall not be liable for any damage to such property or loss suffered by Lessee's business or business operations which may be caused by the bursting, overflowing or leaking of sewer or steam pipes, from water from any source whatsoever, or from any heating fixtures, plumbing fixtures, electric wires, noise, gas or odors, or from causes of any other matter. 8.2. Compliance with ADA. Lessee, at its sole cost and expense, agrees to keep and maintain the Premises in full compliance at all times with the Americans with Disabilities Act of 1990, as amended ("ADA"). In addition, Lessee agrees that all improvements it makes at the Airport shall comply with all ADA requirements. Texas Sky Harbor, LLC — Lease Sites E-21 and E-22 Ground Lease Agreement Fort Worth Spinks Airport Page 7 of 29 8.3. Inspections. 8.3.1. Lessor shall have the right and privilege, through its officers, agents, servants or employees, to inspect the Premises. Except in the event of an emergency, Lessor shall conduct such inspections during Lessee's ordinary business hours and shall use its best efforts to provide Lessee at least four (4) hours' notice prior to any inspection. 8.3.2. If Lessor determines during an inspection of the Premises that Lessee is responsible under this Lease for any maintenance or repairs, Lessor shall notify Lessee in writing. Lessee agrees to begin such maintenance or repair 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, considering the nature of the work to be done. If Lessee fails to begin the recommended maintenance or repairs within such time or fails to complete the maintenance or repairs within a reasonable time, Lessor may, in its discretion, perform such maintenance or repairs on behalf of Lessee. In this event, Lessee will reimburse Lessor for the cost of the maintenance or repairs, and such reimbursement will be due on the date of Lessee's next monthly rent payment following completion of the maintenance or repairs. 8.3.3. During any inspection, Lessor may perform any obligations that Lessor is authorized or required to perform under the terms of this Lease or pursuant to its governmental duties under federal state or local laws, rules or regulations. 8.3.4. Lessee will permit the City's Fire Marshal or his or her authorized agents to inspect the Premises and Lessee will comply with all requirements of the Fire Marshal or his or her authorized agents that are necessary to bring the Premises into compliance with the City of Fort Worth Fire Code and Building Code provisions regarding fire safety, as such provisions exist or may hereafter be amended. Lessee shall maintain in proper condition accessible fire extinguishers of a number and type approved by the Fire Marshal or his or her authorized agents for the particular hazard involved. 8.4. Environmental Remediation. To the best of Lessor's knowledge, the Premises comply with all applicable federal, state and local environmental regulations or standards. Lessee agrees that it has inspected the Premises and is fully advised of its own rights without reliance upon any representation made by Lessor concerning the environmental condition of the Premises. LESSEE, AT ITS SOLE COST AND EXPENSE, AGREES THAT IT SHALL BE FULLY RESPONSIBLE FOR THE REMEDIATION OF ANY VIOLATION OF ANY APPLICABLE FEDERAL, STATE OR LOCAL ENVIRONMENTAL REGULATIONS OR STANDARDS THAT IS CAUSED BY LESSEE, ITS OFFICERS, AGENTS, SERVANTS, EMPLOYEES, CONTRACTORS, SUBCONTRACTORS OR INVITEES. Texas Sky Harbor, LLC — Lease Sites E-21 and E-22 Ground Lease Agreement Fort Worth Spinks Airport Page 8 of 29 9. SIGNS. Lessee may, at its sole expense and with the prior written approval of the Director, install and maintain signs on the exterior of the hangar or Premises related to Lessee's business operations. Such signs, however, must be in keeping with the size, color, location and manner of display of other signs at the Airport. Lessee shall maintain all such signs in a safe, neat, sightly and physically good condition. 10. RIGHTS AND RESERVATIONS OF LESSOR. Lessor hereby retains the following rights and reservations: 10.1. Lessor reserves the right to take any action it considers necessary to protect the aerial approaches of the Airport against obstruction, including, but not limited to, the right to prevent Lessee from erecting or permitting to be erected any building or other structure which, in the opinion of Lessor, would limit the usefulness of the Airport, constitute a hazard to aircraft or diminish the capability of existing or future avigational or navigational aids used at the Airport. 10.2. Lessor reserves the right to develop and improve the Airport as it sees fit, regardless of the desires or view of Lessee, and without interference or hindrance by or on behalf of Lessee. Accordingly, nothing contained in this Lease shall be construed to obligate Lessor to relocate Lessee as a result of any such Airport developments or improvements. 10.3. This Lease shall be subordinate to the provisions of any existing or future agreement between Lessor and the United States Government, which relates to the operation or maintenance of the Airport and is required as a condition for the expenditure of federal funds for the development, maintenance or repair of Airport infrastructure. In the event that any such existing or future agreement directly causes a material restriction, impairment or interference with Lessee's primary operations on the Premises ("Limitation") for a period of less than seven (7) calendar days, this Lease shall continue in full force and effect. If the Limitation lasts more than seven (7) calendar days, Lessee and Lessor shall negotiate in good faith to resolve or mitigate the effect of the Limitation. If Lessee and Lessor are in good faith unable to resolve or mitigate the effect of the Limitation, and the Limitation lasts between seven (7) and one hundred eighty (180) days, then for such period (i) Lessee may suspend the payment of any rent due hereunder, but only if Lessee first provides adequate proof to Lessor that the Limitation has directly caused Lessee a material loss in revenue; (ii) subject to ordinary wear and tear, Lessor shall maintain and preserve the Premises and its improvements in the same condition as they existed on the date such Limitation commenced; and (iii) the term of this Lease shall be extended, at Lessee's option, for a period equal to the duration of such Limitation. If the Limitation lasts more than one hundred eighty (180) days, then (i) Lessor and Lessee may, but shall not be required to, (a) further adjust the payment of rent and other fees or charges, (b) renegotiate maintenance responsibilities and (c) extend the term of this Lease, or (ii) Lessee may terminate this Lease upon thirty (30) days' written notice to Lessor. Texas Sky Harbor, LLC — Lease Sites E-21 and E-22 Ground Lease Agreement Fort Worth Spinks Airport Page 9 of 29 10.4. During any war or national emergency, Lessor shall have the right to lease any part of the Airport, including its landing area, to the United States Government. In this event, any provisions of this instrument which are inconsistent with the provisions of the lease to the Government shall be suspended. Lessor shall not be liable for any loss or damages alleged by Lessee as a result of this action. However, nothing in this Lease shall prevent Lessee from pursuing any rights it may have for reimbursement from the United States Government. If any lease between Lessor and the United States Government executed pursuant to this Section 10.4 directly causes a Limitation for a period of less than seven (7) calendar days, this Lease shall continue in full force and effect. If the Limitation lasts more than seven (7) calendar days, Lessee and Lessor shall negotiate in good faith to resolve or mitigate the effect of the Limitation. If Lessee and Lessor are in good faith unable to resolve or mitigate the effect of the Limitation, and the Limitation lasts between seven (7) and one hundred eighty (180) days, then for such period (i) Lessee may suspend the payment of any rent due hereunder, but only if Lessee first provides adequate proof to Lessor that the Limitation has directly caused Lessee a material loss in revenue; (ii) subject to ordinary wear and tear, Lessor shall maintain and preserve the Premises and its improvements in the same condition as they existed on the date such Limitation commenced; and (iii) the term of this Lease shall be extended, at Lessee's option, for a period equal to the duration of such Limitation. If the Limitation lasts more than one hundred eighty (180) days, then (i) Lessor and Lessee may, but shall not be required to, (a) further adjust the payment of rent and other fees or charges, (b) renegotiate maintenance responsibilities and (c) extend the term of this Lease, or (ii) Lessee may terminate this Lease upon thirty (30) days' written notice to Lessor. 10.5. Lessor covenants and agrees that during the term of this Lease it will operate and maintain the Airport and its facilities as a public airport consistent with and pursuant to the Sponsor's Assurances given by Lessor to the United States Government through the Federal Airport Act; and Lessee agrees that this Lease and Lessee's rights and privileges hereunder shall be subordinate to the Sponsor's Assurances. 10.6. Lessee's rights hereunder shall be subject to all existing and future utility and drainage easements and rights -of -way granted by Lessor for the installation, maintenance, inspection, repair or removal of facilities owned or operated by electric, gas, water, sewer, communication or other utility companies. Lessee's rights shall additionally be subject to all rights granted by any ordinance or statute which allows utility companies to use publicly -owned property for the provision of utility services. 10.7. Lessor agrees Lessee shall have the right of ingress and egress to and from the Premises by means of roadways for automobiles and taxiways for aircraft including access during the construction phase of airport improvements, unless otherwise agreed to in writing by both parties. Such rights shall be consistent with the rules and regulations with respect to the occupancy and use of airport premises as adopted from time to time by the City of Fort Worth and by the Federal Aviation Administration or any other state, federal or local authority. 11. INSURANCE. Texas Sky Harbor, LLC—Lease Sites E-21 and E-22 Ground Lease Agreement Fort Worth Spinks Airport Page 10 of29 Lessee shall procure and maintain at all times, in full force and effect, a policy or policies of insurance as specified herein, naming the City of Fort Worth as an additional insured and covering all public risks related to the leasing, use, occupancy, maintenance, existence or location of the Premises. Lessee shall obtain the required insurance specified to be maintained by a commercial tenant in accordance with Exhibit "C", the "City of Fort Worth Aviation Insurance Requirements" attached hereto and made part of this Lease for all purposes. In addition, Lessee shall be responsible for all insurance to construction, improvements, modifications or renovations to the Premises and for personal property of its own or in its care, custody or control. 11.1. Adiustments to Required Coverne and Limits. Insurance requirements, including additional types of coverage and increased limits on existing coverages, are subject to change at Lessor's option and as necessary to cover Lessee's and any Sublessees' operations at the Airport. Lessee will accordingly comply with such new requirements within thirty (30) days following notice to Lessee. 11.2 Lessee shall procure and maintain at all times, in full force and effect, a policy or policies of insurance as more particularly set forth in Exhibit "C", which is attached hereto and incorporated herein for all purposes. 11.3 As a condition precedent to the effectiveness of this Lease, Lessee shall furnish Lessor with appropriate certificates of insurance signed by the respective insurance companies as proof that it has obtained the types and amounts of insurance coverage required herein. Lessee hereby covenants and agrees that not less than thirty (30) days prior to the expiration of any insurance policy required hereunder, it shall provide Lessor with a new or renewal certificate of insurance. In addition, Lessee shall, at Lessor's request, provide Lessor with evidence that it has maintained such coverage in full force and effect. 12. INDEPENDENT CONTRACTOR. It is expressly understood and agreed that Lessee shall operate as an independent contractor as to all rights and privileges granted herein, and not as an agent, representative or employee of Lessor. Lessee shall have the exclusive right to control the details of its operations and activities on the Premises and shall be solely responsible for the acts and omissions of its officers, agents, servants, employees, contractors, subcontractors, patrons, licensees and invitees. Lessee acknowledges that the doctrine of respondeat superior shall not apply as between Lessor and Lessee, its officers, agents, employees, contractors and subcontractors. Lessee further agrees that nothing herein shall be construed as the creation of a partnership or joint enterprise between Lessor and Lessee. Texas Sky Harbor, LLC — Lease Sites E-21 and E-22 Ground Lease Agreement Fort Worth Spinks Airport Page I 1 of 29 13. INDEMNIFICATION. LESSEE HEREBY ASSUMES ALL LIABILITY AND RESPONSIBILITY FOR PROPERTY LOSS, PROPERTY DAMAGE AND/OR PERSONAL INJURY OF ANY KIND, INCLUDING DEATH, TO ANY AND ALL PERSONS, OF ANY KIND OR CHARACTER, WHETHER REAL OR ASSERTED, ARISING OUT OF OR IN CONNECTION WITH ITS USE OF THE AIRPORT UNDER THIS LEASE OR WITH THE LEASING, MAINTENANCE, USE, OCCUPANCY, EXISTENCE OR LOCATION OF THE PREMISES, EXCEPT TO THE EXTENT CAUSED BY THE NEGLIGENCE OR INTENTIONAL MISCONDUCT OF LESSOR, ITS OFFICERS, AGENTS, SERVANTS OR EMPLOYEES LESSEE COVENANTS AND AGREES TO, AND DOES TO THE EXTENT ALLOWED BY LAW, WITHOUT WAIVING ANY DEFENSES PROVIDED BY LAW, HEREBY INDEMNIFY, HOLD HARMLESS AND DEFEND LESSOR, ITS OFFICERS, AGENTS, SERVANTS AND EMPLOYEES, FROM AND AGAINST ANY AND ALL CLAIMS OR LAWSUITS FOR EITHER PROPERTY DAMAGE OR LOSS (INCLUDING ALLEGED DAMAGE OR LOSS TO LESSEE'S BUSINESS AND ANY RESULTING LOST PROFITS) AND/OR PERSONAL INJURY, INCLUDING DEATH, TO ANY AND ALL PERSONS, OF ANY KIND OR CHARACTER, WHETHER REAL OR ASSERTED, ARISING OUT OF OR IN CONNECTION WITHLESSEE'S USE OF THE AIRPORT UNDER THIS LEASE OR WITH THE USE, LEASING, MAINTENANCE, OCCUPANCY, EXISTENCE OR LOCATION OF THE PREMISES, EXCEPT TO THE EXTENT CAUSED BY THE NEGLIGENCE OR INTENTIONAL MISCONDUCT OF LESSOR, ITS OFFICERS, AGENTS, SERVANTS OR EMPLOYEES. LESSEE ASSUMES ALL RESPONSIBILITY AND AGREES TO PAY LESSOR FOR ANYAND ALL INJURIES OR DAMAGES TO LESSOR'S PROPERTY WHICHARISE OUT OF OR IN CONNECTION WITH ANY AND ALL ACTS OR OMISSIONS OF LESSEE, ITS OFFICERS, AGENTS, EMPLOYEES, CONTRACTORS, SUBCONTRACTORS, LICENSEES OR INVITEES, EXCEPT TO THE EXTENT CA USED BY THE NEGLIGENCE OR INTENTIONAL MISCONDUCT OF LESSOR, ITS OFFICERS, AGENTS, SERVANTS OR EMPLOYEES. LESSOR DOES NOT GUARANTEE POLICE PROTECTION TO LESSEE, ANY SUBLESSEES OR THEIR PROPERTY. LESSOR IS OBLIGATED ONLY TO PROVIDE SECURITY ADEQUATE TO MAINTAIN LESSOR'S CERTIFICATION UNDER FAA REGULATIONS. LESSEE SHALL COMPLY WITHALL APPLICABLE REGULATIONS OF THE FAA RELATING TO AIRPORT SECURITY. LESSEE SHALL PAY ALL FINES IMPOSED BY THE FAA ON LESSOR OR LESSEE RESULTING FROM LESSEE'S OR ANY SUBLESSEES' FAILURE TO COMPLY WITH SUCH FAA REGULATIONS OR TO PREVENT UNAUTHORIZED PERSONS OR PARTIES FROM THEIR OBTAINING ACCESS TO THE AIR OPERATIONS AREA OF THE AIRPORT FROM THE PREMISES. Texas Sky Harbor, LLC — Lease Sites E-21 and E-22 Ground Lease Agreement Fort Worth Spinks Airport Page 12 of29 14. TERMINATION. In addition to termination rights contained elsewhere in this Lease, Lessor shall have the right to terminate this Lease as follows: 14.1. Failure by Lessee to Pav Rent, Fees or Other Charges. If Lessee fails to pay any rent, fees or other charges due under this Lease, Lessor shall deliver to Lessee a written invoice and notice to pay the invoice within ten (10) calendar days. If Lessee fails to pay the balance outstanding within such time, Lessor shall have the right to terminate this Lease immediately. 14.2. Breach or Default by Lessee. If Lessee commits any breach or default, other than Lessee's failure to pay rent, Lessor shall deliver written notice to Lessee specifying the nature of such breach or default. Lessee shall have thirty (30) calendar days following receipt of such written notice to cure, adjust or correct the problem to the standard existing prior to the breach. If Lessee fails to cure the breach or default within such time period, Lessor shall have the right to terminate this Lease immediately, unless such breach or default is not susceptible to cure within thirty (30) calendar days, in which event Lessee shall have such additional time to effect a cure as determined by Lessor. i 14.3. Abandonment or Non -Use of the Premises. Lessee's abandonment or non-use of the Premises for any reason for more than thirty (30) consecutive calendar days shall constitute grounds for immediate termination of this Lease by Lessor, unless such non-use is caused by Force Majeure, as set forth in Section 27 below. 14.4. Lessee's Financial Obligations to Lessor upon Termination, Breach or Default. If Lessor terminates this Lease for any non-payment of rent, fees or other charges or for any other breach or default as provided in Sections 14.1, 14.2 or 14.3 of this Lease, Lessee shall be liable for and shall pay to Lessor all rent due Lessor for the remainder of the term then in effect as well as all arrearages of rentals, fees and charges payable hereunder. In no event shall a reentry onto or reletting of the Premises by Lessor be construed as an election by Lessor to forfeit any of its rights under this Lease. 14.5. Rights of Lessor Upon Termination or Expiration. Upon termination or expiration of this Lease, all rights, powers and privileges granted to Lessee hereunder shall cease and Lessee shall vacate the Premises. Within twenty (20) days following the effective date of termination or expiration, Lessee shall remove from the Premises all trade fixtures, tools, machinery, equipment, materials and supplies placed on the Premises by Lessee pursuant to this Lease. After such time, Lessor shall have the right to take full possession of the Texas Sky Harbor, LLC — Lease Sites E-21 and E-22 Ground Lease Agreement Fort Worth Spinks Airport Page 13 of 29 Premises, by force if necessary, and to remove any and all parties and property remaining on any part of the Premises. Lessee agrees that it will assert no claim of any kind against Lessor, its agents, servants, employees or representatives, which may stem from Lessor's termination of this Lease or any act incident to Lessor's assertion of its right to terminate or Lessor's exercise of any rights granted hereunder. 15. NOTICES. Notices required pursuant to the provisions of this Lease shall be conclusively determined to have been delivered (i) when hand -delivered to the other party at such addresses listed below, or at such other addresses as the receiving party designates by proper notice to the sending party, or (ii) three (3) days after being deposited in the United States Mail, postage prepaid, addressed as follows: To LESSOR: To LESSEE: City of Fort Worth Texas Sky Harbor LLC Aviation Department ATTN: Daniel Griffith 201 American Concourse, Suite 330 217 Man O War Ct. Fort Worth, TX 76106 Burleson, Texas 76028 817/219-8471 / dannyg@whitehawkworlwide.com 16. ASSIGNMENT AND SUBLETTING. 16.1. In General. Lessee shall have the right to sublease portions or all of the Premises as provided by and in accordance with Section 5 of this Lease. Otherwise, Lessee shall not assign, sell, convey, sublease or transfer the entirety of its rights, privileges, duties or interests granted by this Lease without the advance written consent of Lessor. 16.2. Conditions of Approved Assignments and Subleases. As provided for in Section 5, if Lessor consents to any assignment or sublease, all terms, covenants and agreements set forth in this Lease shall apply to the assignee or sublessee, and such assignee or sublessee shall be bound by 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 requested assignment or sublease shall not relieve Lessee of its obligations hereunder, including payment of rentals, fees and charges. 17. LIENS BY LESSEE. Lessee acknowledges that it has no authority to engage in any act or to make any contract which may create or be the foundation for any lien upon the property or interest in the property of Lessor. If any such purported lien is created or filed, Lessee, at its sole cost and Texas Sky Harbor, LLC — Lease Sites E-21 and E-22 Ground Lease Agreement Fort Worth Spinks Airport Page 14 of 29 expense, shall liquidate and discharge the same within thirty (30) days of such creation or filing. Lessee's failure to discharge any such purported lien shall constitute a breach of this Lease and Lessor may terminate this Lease upon thirty (30) days' written notice. However, Lessee's financial obligation to Lessor to liquidate and discharge such lien shall continue in effect following termination of this Lease and until such a time as the lien is discharged. 18. TAXES AND ASSESSMENTS. Lessee agrees to pay any and all federal, state or local taxes or assessments which may lawfully be levied against Lessee due to Lessee's use or occupancy of the Premises or any improvements or property placed on the Premises by Lessee as a result of its occupancy. 19. COMPLIANCE WITH LAWS, ORDINANCES, RULES AND REGULATIONS. Lessee covenants and agrees that it shall not engage in any unlawful use of the Premises. Lessee further agrees that it shall not permit its officers, agents, servants, employees, contractors, subcontractors, patrons, licensees or invitees to engage in any unlawful use of the Premises and Lessee immediately shall remove from the Premises any person engaging in such unlawful activities. Unlawful use of the Premises by Lessee itself shall constitute an immediate breach of this Lease. Lessee agrees to comply with all federal, state and local laws; all ordinances, rules and regulations, and minimum standards of Lessor; all rules and regulations and minimum standards established by the Director; and all rules and regulations and minimum standards adopted by the City Council pertaining to the conduct required at airports owned and operated by the City, as such laws, ordinances, rules and regulations, and minimum standards exist or may hereafter be amended or adopted. If Lessor notifies Lessee in accordance with Section 15 above of any violation of such laws, ordinances, rules or regulations, Lessee shall immediately desist from and correct the violation. 19.1 Compliance with Minimum Standards and Schedule of Rates and Charges: Lessee hereby agrees to comply at all times with the City's Minimum Standards, as may be adopted by the City Council from time to time. Lessee shall be bound by any charges adopted in the City's Schedule of Rates and Charges, as may be adopted by the City Council from time to time. 20. NON-DISCRIMINATION COVENANT. Lessee, for itself, its personal representatives, successors in interest and assigns, as part of the consideration herein, agrees as a covenant running 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 origin, religion, disability, sex, sexual orientation, transgender, gender identity or gender expression. Lessee further agrees for itself, its personal representatives, successors in interest and assigns that no person shall be excluded from the provision of any services on or in the construction of any improvements or alterations to the Premises on grounds of race, color, national origin, religion, disability, sex, sexual orientation, transgender, gender identity or gender expression. Texas Sky Harbor, LLC — Lease Sites E-21 and E-22 Ground Lease Agreement Fort Worth Spinks Airport Page 15 of 29 Lessee agrees to furnish its accommodations and to price its goods and services on a fair and equal basis to all persons. In addition, Lessee covenants and agrees that it will at all times comply with any requirements imposed by or pursuant to Title 49 of the Code of Federal Regulations, Part 21, Non -Discrimination in Federally Assisted Programs of the Department of Transportation and with any amendments to this regulation which may hereafter be enacted. If any claim arises from an alleged violation of this non-discrimination covenant by Lessee, its personal representatives, successors in interest or assigns, Lessee agrees to indemnify Lessor and hold Lessor harmless. 21. LICENSES AND PERMITS. Lessee shall, at its sole expense, obtain and keep in effect all licenses and permits necessary for the operation of its operations at the Airport. 22. GOVERNMENTAL POWERS. It is understood and agreed that by execution of this Lease, Lessor does not waive or surrender any of its governmental powers. 23. NO WAIVER. The failure of Lessor to insist upon the performance of any term or provision of this Lease or to exercise any right granted herein shall not constitute a waiver of Lessor's right to insist upon appropriate performance or to assert any such right on any future occasion. 24. VENUE AND JURISDICTION. If any action, whether real or asserted, at law or in equity, arises on the basis of any provision of this Lease or of Lessee's operations on the Premises, venue for such action shall lie in state courts located in Tarrant County, Texas or the United States District Court for the Northern District of Texas, Fort Worth Division. This Lease shall be construed in accordance with the laws of the State of Texas. 25. ATTORNEYS' FEES. In the event there should be a breach or default under any provision of this Lease and either party should retain attorneys or incur other expenses for the collection of rent, fees or charges, or the enforcement of performance or observances of any covenant, obligation or agreement, Lessor and Lessee agree that each party shall be responsible for its own attorneys' fees. Texas Sky Harbor, LLC — Lease Sites E-21 and E-22 Ground Lease Agreement Fort Worth Spinks Airport Page 16 of 29 26. SEVERABILITY. If any provision of this Lease shall be held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired. 27. FORCE MAJEURE. Lessor and Lessee will exercise their best efforts to meet their respective duties and obligations as set forth in this Agreement, but will not be held liable for any delay or omission in performance due to force majeure or other causes beyond their reasonable control, including, but not limited to, compliance with any government law, ordinance, or regulation; acts of God; acts of the public enemy; fires; strikes; lockouts; natural disasters; wars; riots; epidemics or pandemics; government action or inaction; orders of government; material or labor restrictions by any governmental authority; transportation problems; restraints or prohibitions by any court, board, department, commission, or agency of the United States or of any States; civil disturbances; other national or regional emergencies; or any other similar cause not enumerated herein but which is beyond the reasonable control of the Party whose performance is affected (collectively, "Force Majeure Event"). The performance of any such obligation is suspended during the period of, and only to the extent of, such prevention or hindrance, provided the affected Party provides notice of the Force Majeure Event, and an explanation as to how it prevents or hinders the Party's performance, as soon as reasonably possible after the occurrence of the Force Majeure Event, with the reasonableness of such notice to be determined by the Lessor in its sole discretion. The notice required by this section must be addressed and delivered in accordance with this Lease. 28. SIGNATURE AUTHORITY. The person signing this agreement hereby warrants that he/she has the legal authority to execute this agreement on behalf of the respective party, and that such binding authority has been granted by proper order, resolution, ordinance or other authorization of the entity. Each party is fully entitled to rely on these warranties and representations in entering into this Agreement or any amendment hereto. 29. HEADINGS NOT CONTROLLING. Headings and titles used in this Lease are for reference purposes only and shall not be deemed a part of this Lease. 30. CHAPTER 2270 OF THE TEXAS GOVERNMENT CODE. Lessee acknowledges that in accordance with Chapter 2270 of the Texas Government Code, the City is prohibited from entering into a contract with a company for goods or services unless the contract contains a written verification from the company that it: (1) does not boycott Israel; and (2) will not boycott Israel during the term of the contract. The terms "boycott Israel" and "company" shall have the meanings ascribed to those terms in Section 808.001 of the Texas Government Code. By signing this Lease, Lessee certifies that Texas Sky Harbor, LLC—Lease Sites E-21 and E-22 Ground Lease Agreement Fort Worth Spinks Airport Page 17of29 Lessee's signature provides written verification to the City that Lessee: (1) does not boycott Israel, and (2) will not boycott Israel during the term of the Lease. 31. ENTIRETY OF AGREEMENT. This written instrument, including any documents attached hereto or incorporated herein by reference, contains the entire understanding and agreement between Lessor and Lessee, its assigns and successors in interest, as to the matters contained herein. Any prior or contemporaneous oral or written agreement is hereby declared null and void to the extent in conflict with any provisions of this Lease. The terms and conditions of this Lease shall not be amended unless agreed to in writing by both parties and approved by the City Council of Lessor. [Signature Pages Follow] Texas Sky Harbor, LLC — Lease Sites E-21 and E-22 Ground Lease Agreement Fort Worth Spinks Airport Page 18 of29 IN WITNESS WHEREOF, the parties hereto have executed this Lease in multiples on this the day of , 2024. CITY Oy FORTWORTH: By: V90 Valerie Washington Assistant City Manager Date: 10 i m' V I STATE OF TEXAS COUNTY OF TARRANT § BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared Valerie Washington, known to nie to be the person whose name is subscribed to the foregoing instrument, and acknowledged to nie that the same was the act of the City of Fort Worth and that he executed the same as the act of the City of Fort Worth for the purposes and consideration therein expressed and in the capacity therein stated. G V N UNDER MY HAND AND SEAL OF OFFICE this i 1 day U (,b , 2024. ARMIDA MARY GARCIA4 60--� 0 4c,'s Notary Public, State of Texas Notary Public in and for the State of Texas + � Comm. Expires 07-12.2028 Notary ID 134989930 p4onouau f-C x APPROVED AS TO FORM AND LEGALITY: By: Candace Pagliara (Oct K, 2024 07:15 C01) Candace Pagliara Assistant City Attorney M&C: 10/15/2024 Date: 24-0873 1295 Certificate Number: 2024-1191412 Texas Sky Hatbar, LLC— Lease Sites E-21 and E-22 Ground Lease Agreement Fait Werth Spinks Militia Page 19 of 27 ATTEST: Jannette S. Goodall City Secretary KC p oF00000000 �a°a pro �9dd d�8 �o-1d o°*J add TEXASod.y Ilbnnuo44 OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX Contract Compliance Manager: By signing, I aclmowledge that I am the person responsible for the monitoring and administration of this contract, including ensuring all performance and reporting requirements. Sa.�6awa.�oc�%n�in Barbara Goodwin Real Property Manager LLC By: Daniel Griffith President C Date: Oq.ja4 Igoe STATE OF TEXAS COUNTY OF TARRANT BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared Daniel Griffith, lmown to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that the same was the act of Texas Sky Harbor, LLC. and that he executed the same as the act of Texas Sky Harbor, LLC. for the purposes and consideration therein expressed and in the capacity therein stated. G N UND R MY HAND AND SEAL OF OFFICE this air 1 day ' , 2024. MIGENI, TRA `��pStY Pv��4 6:Notary Public, Seta of Taxes ': }t Comm. Expires W-23-2.025 Notary ID 133228E71 Texas Sky Harbor, LLC—Lease Sites E-21 and E-22 Ground Lease Agreement Fort Worth Spinks Airport Page 20 of 27 'I / a d "'Nvtaiy Public in and for the State of Texas EXHIBIT A - SURVEY REAL PROPERTY DESCRIPTION AND MAP FOR LEASE SITE E-21 LEGAL LAND DESCRIPTION LEASE SITE BEING a portion of that certain tract of land in the Hiram Little Survey, Abstract No. 930, City or Forth Worth, Tarrant County, Texas, described as Block 4 and Block 5, Fort Worth Spinks Airport (hereinafter referred to as Spinks Airport), an addition to the City or Fort Worth, Tarrant County, Texas, according to the plat recorded In Cabinet A, Slide 353, Plat Records, Tarrant County, Texas, and being more particularly described, by metes and bounds, as follows: COMMENCING at a five -eighths inch iron rod found for an Eastern ell comer of said Spinks Airport, same being the Northwest corner of that certain tract of land described as Tract I In a Special Warranty Deed to Drewland Enterprises, Inc. (hereinafter referred to as Tract I), as recorded in Instrument Number D216104483, Official Public Records, Tarrant County, Texas (O.P.R.T.C.T.); THENCE South 87 degrees 45 minutes 28 seconds West, crossing said Spinks Airport, a distance of 301.89 feet to a rive -eighths inch iron rod with plastic cap stamped "CENTURION PROP COR" set for the Southeast corner of the herein described tract, the PLACE OF BEGINNING; THENCE South 89 degrees 25 minute 55 seconds West, continue crossing sold Spinks Airport, a distance of 99.50 feet to a five -eighths inch iron rod with plastic cap stamped "CENTURION PROP COR" set for corner; THENCE North 00 degrees 28 minutes 38 seconds West, continue crossing said Spinks Airport, a distance of 375.00 feet a five -eighths Inch Iron rod with plastic cap stamped "CENTURION PROP COR" set for corner; THENCE North 89 degrees 25 minutes 55 seconds East, continue crossing said Spinks Airport, a distance of 99.50 feet to to an "X" cut set In concrete set for corner; THENCE South 00 degrees 28 minutes 38 seconds East, continue crossing said Spinks Airport, a distance of 375,00 feet to the PLACE OF BEGINNING, and containing a calculated area of 0.857 acres (37,313 square feet) of land. &qw FORT WORTH $PINKS AIRPORT LEASE SITE PORTION OF BLOCK 4 & 5 CITY OF FORT WORTH, TARRANT COUNTY, TEXAS Texas Sky Harbor, LLC — Lease Sites E-21 and E-22 Ground Lease Agreement Fort Worth Spinks Airport Page 21 of 29 114 CENTURION Centurion Planning and Design 3508 Highway 121 Buford, TX 7021 Phone No.(972) 737-3229 TBPELS No. 10194746 Pm10.-t na. WAM4101S I Date t/L012024 , Pipe IV i I R7Mn W. n 0 I rhn.m y: m17 r EXISTING CENTERLINE TAXIWAY MIKE AIRPORT CONTROL MONUMENT , O• I/� �- ' NGS MONUMENT NO. A132808 / (DESIGNATION FVIS D) 0 O W O 0 \/ N: 6,890,344.7E a I 4 E; 2,334,148,78 arum r' - ea' YI-- - j GENETIAL NMS: IRS C N89° 25' 55"E 99. 0' ( 1. NI coordinates and beatings strvin horeln am Tcaas Cnardnate System, NAD133 (ZOL1), Terms North Central Zone (4202). PA distances stwnn horeln are $Wow,, I dismnms, unless otherwLe noted. 2. At Iron rok set (IRS) are SMfvl) wlth a p1mbc cap x art I Stamped'aNTUR1ON PROP COR'. AO found mmomerb stT Nnn-1 s oanRUTE shaven tgreon ere deemed to be oxitroling monuments. smtm (20t1) TEXAS W RTH C11fTxAL Wit GRID COORDINATES N: 69921U9.79 E: 23369".16 h 1ATMOE: r13T°34' 1' I LCN03ILOE: W01 L6 9' V �at'fi�' LEASE SITE 0,857 ACRE OR FORT * : 4 d . g 37;A3 SQUARE FEET o WORTH SPINKS ......MICA... Uay ......... ....DAVIS Lri 1ri AIRPORT I ..... _� .... CABINET A, �. R, 41i:it1 �,:.. 3 w SLIDE 353 I.. f�.y t°, a m iL�r� P.R.T.C,T, r N I 0 I V' N C5 U to I PLACE OF I COMMENCING FOUND 518' IRON ROD EASTERN ELL CORNER Of 13LOCK 5 I FORT VMR Ri $PINKS AIRPORT CAMNET A, SLME 353, PAJ.CT, MAD-1983 COORDINATE SYSTEM(2011) i 'f>:NAS GRID D C� � ZONE 1 N: 6092246,60 E: 2336090.95 LATITUDE: N32a 34' 10' LORGITUDE. 97. 1W 15' �" °' 589° 25' 55"W 99.50' IRS 587 a 4S' 28-N 301'87 LEGEND s°' DREWLAND O uuLssms°onootiliaviistWoxser "� I PLACE OF ENTERPRISES, INC. I O.Pt2.T.GT, ONTCIALFiJkICRECQtKTARWfTCOUtfTY,TEtAS BEGINNING INSTRUMENT I P,AT.CT, PIATRfCW=,TARPJWTCQMTY,TEXAS NUMBER I F GRATE Ih4ET URT WORT D216104483 TAx1WAY ua11 O.P.R.T.C.T. Centurion Planning and LWIgn 350E Highway 121 FORT WORTH SPINKS AIRPORT 4 Bedford, TX 76021 LEASE SITE C E N T U R 10 N Phone No. (972) 737-3229 PORTION OF BLOCK 4 & 5 TSPELS No.10194746 CITY OF FORT WORTH, TARRANT COUNTY, TEXAS Pmlcf hb. wHrRADl5 I aata: 9nou3o2a Paga I d 2 i Own h . ml2 i ChmW W. ed2 Texas Sky Harbor, LLC - Lease Sites E-21 and E-22 Ground Lease Agreement Fort Worth Spinks Airport Page 22 of'29 EXHIBIT A - SURVEY REAL PROPERTY DESCRIPTION AND MAP FOR LEASE SITE E-22 LEGAL LAND DESCRIPTION LEASE SITE BEING a portion of that certain tract of land in the Hiram Little Survey, Abstract No, 930, City of Forth Worth, Tarrant County, Texas, described as Block 5, Fort Worth Spinks Airport (hereinafter referred to as Block 5), an addition to the City of Fort Worth, Tarrant County, Texas, according to the plat recorded in Cabinet A, Slide 353, Plat Records, Tarrant County, Texas, and being more particularly described, by metes and bounds, as follows: COMMENCING at a five -eighths inch iron rod found for an Eastern ell corner of said Block 5, same being the Northwest corner of that certain tract of land described as Tract I In a Special Warranty Deed to Drewland Enterprises, Inc. (hereinafter referred to as Tract 1), as recorded in Instrument Number D216104483, Official Public Records, Tarrant County, Texas (O,P,R.`r,C.T.); THENCE South 86 degrees 52 minutes 47 seconds West, crossing said Block 5, a distance of 198.06 feet to a five -eighths inch Iron rod with plastic cap stamped "CENTURION PROP COR" set for the Southeast corner of the herein described tract, the PLACE OF BEGINNING; THENCE South 89 degrees 25 minute 55 seconds West, continue crossing said Block 5, a distance of 103.90 feet to a five -eighths Inch iron rod with plastic cap stamped "CENTURION PROP COR" set for corner; THENCE North 00 degrees 28 minutes 38 seconds West, continue crossing said Block 5, a distance of 375.00 feet to an "X" cut set In concrete set for corner; THENCE North 69 degrees 25 minutes 55 seconds East, continue crossing said Block 5, a distance of 102.97 feet to a five-elghths Inch iron rod with plastic cap stamped "CENTURION PROP COW set for corner; THENCE South 00 degrees 37 minutes 08 seconds East, continue crossing said Block 5, a distance of 375.00 feet to the PLACE OF BEGINNING, and containing a calculated area of 0.890 acres (38,789 square feet) of land. FoRT%buH FORT WORTH SPINKS AIRPORT LEASE SITE PORTION OF BLOCK 4 & 5 CITY OF FORT WORTH, TARRANT COUNTY, TEXAS Texas Sky Harbor, LLC — Lease Sites E-21 and E-22 Ground Lease Agreement Port Worth Spinks Airport Page 23 of 29 CENTURION P�pjpR No, Wn4V21015 � Ltye: 91t012029 Centurion Planning and Design 3508 Highway 121 Bcdh d, TX 76D21 Phone No. (972) 737-3229 TBPELS No. 10194746 P&,-1of2 I D.a"n b,; rcdr I C oAm Ly. r-P r (► u srxE t• .. eo' o' 3v 1. sa xcur MAD-1983 COMIN TE SYSTEM (2011) TUAS NCRTH cufrm ZONE GRID COMINAIES 11: 6092609.79 & 23365M 16 wrruim tar a1- w tCNGITIJO€: Nor t0' 10 IDUSTING CENTERLINE TAXIWAY MITE AIRPORT CONTROL MONUMENT 0 NGS MONUMENT NO. A52808 \ (DESIGNATION RVS D) F55"E DN: 6,890,344.76 c r E:2,334,148.78 GENERAL. NOTES: N97' 0'"s I 1. AN coordinates and bwdn9s shown haree are Texas Coordinate System, NAD63 (2011), Ttxes North Cents Zone (4202). All distances shown herein are wrfnce distances unless otherWso noted c� LEASE SITE 0,890 ACRE OR 38,789 SQUARE FEET FORT WORTH SPINKS AIRPORT CABINET A, SLIDE 353 P.R,T.C.T. �. I PLACE OF BEGINNING S89° 25' S5 W 103.90 SW 5T 4rW �1 J`�rf IRS IRS 198.06' DREWENTERPRISES, INC INSTRUMENT % NUMBER D2.R.T.C83 &ZWORT O,PR.T.C.T. 2. All tran rods set (IRS) are 51&lrch with a plastic op stamped "CENTURION PROP COR'. All found monuments shown hereon are deemed to be carballing montrnarns. -ter 1 O F y r f i1,,i0HAF.i DAN DAvis ° �. ...... .....,.. ti 4U38 r tom •:Sri I I- SUIt� PLACE OF — COMMENCING FOUND 5/11' IRON ROD EASTE14 Ell CORNER OF BLOD( 5 FORT WORTH SPINKS AIRPORT CABINET A, SLIDE 353, P.R,T.C.T. NAD-1983 ODORDINATE SYSTEM (2011) TEKAS NORTH CENTRAL ZONE GRTD CGORDIHATES N: 6119221660 E: 2336898:95 LATITUDE: 0V 34' W LO11G1TDDE: W97° 1B 15' LEGEND 0 vivivstom low, Non@1G roLw oft scr U'%LM NOTFn OTHPR ME O.P.R.T.r 1. OPP a L PUBLIC RECORDS, TARWit 00111M. TT9tAS P.R.T.C.T. PLAT RECORP6, TAgMW Ct3UIlTy, 7U 5 (=J GM1C HILET CD TA)onvAY ILGHT Centurion Planning and Design 3.506 Highway 121 �� FORT WORTH SPINKS AIRPORT 1# Bedford, TX 76021 LEASE SITE C E N T U R 10 N Phone No. (972) 737-3229 PORTION OF BLOCK 5 TOPELS No. 10194716 CITY OF FORT WORTH, TARRANT COUNTY, TEXAS ProledNo.%%% 4015 I Date-9110/2024 I P,ae200 I txa,mhy.w I "�edrrmd2 Texas Sky Harbor, LLC — Lease Sites E-21 and E-22 Ground Lease Agreement Fort Worth Spinks Airport Page 24 of29 EXHIBIT "B" MANDATORY IMPROVEMENTS Phase I - Six (6) Bay 50'X50' Box Hangar Unit • All mandatory improvements for Lease Site E-21 must be completed in accordance with Section 4 of the Lease and the proposed site plan and completed survey set forth in Exhibit A attached hereto. • Lessee shall submit a 7460 Notice of Proposed Construction of the hangar to the FAA no less than sixty (60) calendar days prior to the commencement of construction. Lessee shall commence construction within nine (9) months following the execution of this Lease. Construction and issuance of a Certificate of Occupancy of a six (6) bay 50'X50' box hangar unit, and an approximately associated apron and vehicle parking spaces shall be completed no later than twenty-one (21) months after construction commenced. Phase II - Approximately 17,864 Square Feet T-Hangar Facility • All mandatory improvements for Lease Site E-22 must be completed in accordance with Section 4 of the Lease and the proposed site plan and completed survey set forth in Exhibit A attached hereto. • Lessee shall submit a 7460 Notice of Proposed Construction of the hangar to the FAA no less than sixty (60) calendar days prior to the commencement of construction. Lessee shall commence construction within six (6) months following the execution of this Lease. Construction and issuance of a Certificate of Occupancy of a twelve (12) bay t-hangar unit, and an approximately associated apron and vehicle parking spaces shall be completed no later than twenty-four (24) months after construction commenced Texas Sky Harbor, LLC — Lease Sites E-21 and E-22 Ground Lease Agreement Fort Worth Spinks Airport Page 25 of 29 EXHIBIT "B-1" PROJECT SCHEDULE MANDATORY IMPROVEMENTS LEASE SITES E-21 & E22 ACTIVITY E-21 E-22 START FINISH Site Survey Metes & Bounds Airport/City Design Review Preliminary Final Acquire Building Permits FAA Airspace Study - 7460 Construction Pre -Construction Meeting w/Airport Staking Utilities Coordination/Clearance Site Grading, Contour, Excavation, etc. Hangar Foundation Apron Paving Parking Lot/Parking Spaces Pedestrian Walkway(s), if applicable Concrete Quality Assurance Tests Structure Build -out Ramp/Hangar Lighting Landscaping Inspections Final Inspection Certificate of Occupancy All provisions of the Lease and this Project Schedule shall be fully complied with in the performance of any such Mandatory Improvements. Should construction not be completed as evidenced by the issuance of a Certificate of Occupancy within the applicable time period set forth above, Lessee shall be in default of the Lease and the Lessor shall terminate Lessee's rights to the Premises in its entirety. Texas Sky Harbor, LLC — Lease Sites E-21 and E-22 Ground Lease Agreement Fort Worth Spinks Airport Page 26 of 29 EXHIBIT C FORT WORTH AVIAnoN EXHIBIT C -MINIMUM INSURANCE REQUIREMENTS Property Commercial Environmenl4 Hangar' s Aircraft and Passenger Automobile Liability (To Category Insurance General Impairment Liability' Liability Include Hired & Non-o,.vned 6 Liability Liability Vehlclees) Fixed Base Operators (FBO's) Yes $5,000.000 $5,000,000 $1,000,000 $ 1,000.000 Aircraft Maintenance Operator and Avionics or Instrument Maintenance -s $1,000,000 $1.000,000 $ 1,000,000 Orator -Piston IQ rcraft Maintenance Operator and Avionics or Instrument Maintenance •5 $5.000,000 $1,000,000 $ 1.000,000 Operator -Turbine (Avionics or Instrument Maintenance s $1.000,000 $ 1,000,000 Operator (Bench work Only) (Aircraft Rental or Flight Training ,5 $1000000 2 $1,000,000/occurrence $ 1,000,000 Operator s ,, $100,000lpassenger (Aircraft Charter or Aircraft 5 $1,000,000 $5,000,000/occurrence $ 1,000,000 ManaManagement Operator ,5 9 P $500,000lpassenger Aircraft Sales Operator 5 $1,000,0007 $1.000.000 $1,000,000/occurrence $ 1,000,000 .5 $100,000/passenger 5 $1,000,000 $1,000,000 (Aircraft Storage Operator ,5 $5,000,000 3 $5,000,000 3 $ 1.000.000 Aviation Service Sole Proprietor ,s $1,000,000 2 $1,000,000/occurrence $ 250,000 $100,000/passenger Other Commercial Aeronautical $1,000,000 5300,000/occurrence $ 1,000,000 Activities ITemporary Specialized Aviation $1,000,000 $300,000/occurrence $ 1,000,000 Service Operator INor-Commercial Hangar Lessee '5 $1,000,0007 $300,000/occurrence $ 1,000,000 (Non -Commercial Flying Club 'S $1,000,000 7 $1,000,000/occurrence $ 1,000,000 S100.000/Dassenaer Non -Commercial Self -Fueling •5 Permitee (Jet Fuel and/or Avoas) $1,000,000 $1,000,000 $300,000/occurrence $ 1,000,000 Non -Commercial Self -Fueling Permitee s $1.000,0007 $500,000 $300,0001occurrence S 250,000 (Alternative Fuels e.o. mo ias) 7 Box Hangar, T-Hangar, Community •5 $1.000.000 $300,000/occurrence $ 250,000 Hangar (Other 'Insurance requirements subject to determination by Aviation Department and Risk Management. Additional Insurance Requirements -Lessee's policies are to be primary to any other valid and collectible insurance available to the City -All policies shall include a Waiver of Subrogation in favor of the City (Temporary SASO must also include Airport Lessee) -The City of Fort Worth shall be named as Additional Insured (Temporary SASO must also include Airport Lessee) -Policies shall have no exclusions by endorsement, which , neither nullify or amend the required lines of coverage, nor decrease the limits of said coverage 'Coverage per aircraft should be equivalent to the average aircraft value at one time and coverage per occurrence should be equivalent to the average of the mwdmum value of total aircraft at one time, but not less than the amount noted above 2 Must Include Negligent Instruction Coverage 3 If aircraft storage operator is providing subleasing space for aircraft storage Only required for those providing flight Instruction 5 Depends on terms of the lease agreement 6 If vehicle parked landside - State minimums would apply 7 Coverage may be provided by endorsement Aviation Minimum Standards, Cityof Fort Worth Aviation Department (0610312014) Texas Sky Harbor, LLC — Lease Sites E-21 and E-22 Ground Lease Agreement Fort Worth Spinks Airport Page 27 of 29 DEFINITIONS: Coverage for the Building includes (but is not limited to) the building and structures, completed additions to covered buildings, outdoor fixtures, permanently installed fixtures, machinery and equipment. The building material used to maintain and service the insured's premises is also insured. Business Personal Property owned by the insured and used in the insured's business is covered for direct loss or damage. The coverage includes (but is not limited to) furniture and fixtures, stock, improvements and betterments, leased property for which you have a contractual obligation to insure and several other similar business property items when not specifically excluded from coverage. The policy is also designed to protect the insured against loss or damage to the Personal Property of Others while in the insured's care, custody and control. PROPERTY INSURANCE Business Income (sometimes called Business Interruption) affords protection against the loss of earnings of a business during the time required to rebuild or repair covered property damaged or destroyed by fire or some other insured cause of loss. Extra Expense allows coverage for those additional expenses over and above normal operating expenses paid due to damage to covered property from a covered cause of loss. These expenses could include rent, utilities, moving expenses, telephone, advertising and labor. This coverage protects the insured for bodily injury or property damage to the third parties, for which they are legally liable. The policy covers accidents occurring on the premises or away from the premises. Coverage is provided for injury or damages arising out of goods or products made or sold by the named insured. Coverage is afforded for the named insured and employees of the named insured; however, several individuals and organizations other than the named insured may be covered depending upon certain circumstances specified in the policy. In addition to the limits, the policy provides supplemental payments for attorney fees, court costs and other expenses associated with a claim or the defense of a liability suit. Coverage A - Bodily Injury and Property Damage Liability COMMERCIAL GENERAL Bodily Injury means physical injury, sickness or disease, including death. Property Damage means physical injury LIABILITY to tangible property, including the resulting loss of use of that property. Coverage B - Personal Injury and Advertising Injury Liability Personal Injury means false arrest, malicious prosecution, wrongful entry or eviction, libel, slander and violations of a person's right of privacy. Advertising Injury means libel, slander, disparagement, violations of a person's right of privacy, misappropriation and copyright infringement. Coverage C - Medical Payments Medical Payments means medical expenses for bodily injury caused by an accident. Insures the hanger operator for legal obligations to pay damages due to loss to an aircraft that occurs when the HANGARKEEPERS aircraft is in the care, custody or control of the insured for safekeeping, storage, service or repair. Coverage LIABILITY extends to liability claims involving an aircraft's loss of use. Insures the pollution exposure associated with the insured's property and operations, Including costs of cleanup and remedial or corrective action due to a third -party demand or a government order. The Pollution exclusion in general ENVIROMENTAL liability insurance effectively eliminates coverage for damages for bodily injury, property damage and cleanup costs IMPIRMENT LIABILITY arising from most types of pollution events. Because of this, customized protection for the pollution exposure of numerous insureds in this category is essential. Coverage geared specifically to the operation of aircraft and the risks involved in aviation. Aviation insurance policies are distinctly different from those for other areas of transportation and tend to incorporate aviation AIRCRAFT AND terminology, as well as terminology, limits and clauses specific to aviation insurance. Passenger liability protects PASSENGER LIABILITY passengers riding in the accident aircraft who are injured or killed. In many countries this coverage is mandatory only for commercial or large aircraft. Coverage is often sold on a "per -seat" basis, with a specked limit for each passenger seat. The liability coverage of the Business Auto Policy provides protection against legal liability arising out of the AUTOMOBILE LIABILITY ownership, maintenance or use of any insured automobile. The insuring agreement agrees to pay for bodily injury (TO INCLUDE HIRED & or property damage for which the insured is legally responsible because of an automobile accident. The policy also NON -OWNED VEHICLES) states that, in addition to the payment of damages, the insurer also agrees to defend the insured for all legal defense cost. The defense is in addition to the policy limits. WAIVER OF An agreement between two parties in which one party agrees to waive subrogation rights against another in the event of a loss. The intent is to prevent one parry's insurer from pursuing subrogation against the other party. SUBROGATION Texas Sky Harbor, LLC — Lease Sites E-21 and E-22 Ground Lease Agreement Fort Worth Spinks Airport Page 28 of29 MAYOR AND COUNCIL COMMUNICATIONS Texas Sky Harbor, LLC — Lease Sites E-21 and E-22 Ground Lease Agreement Fort Worth Spinks Airport Page 29 of 29 M&C Review Page 1 of 2 Official site of the City of Fort Worth, Texas CITY COUNCIL AGENDA FoRI Create New From This M&C REFERENCE **M&C 24- 55FWS GRND LSE DATE: 10/15/2024 NO.: 0873 LOG NAME: AGREEMENT —SITE E-21-E- 22_TEXAS SKY HARBOR, LLC CODE: C TYPE: CONSENT PUBLIC NO HEARING: SUBJECT: (CD 8) Authorize Execution of a New Ground Lease Agreement Including Mandatory Improvements for Approximately 37,313 Square Feet of Ground Space Known as Lease Site E-21 and Approximately 38,789 Square Feet of Ground Space Known as Lease Site E-22 with Texas Sky Harbor, LLC at Fort Worth Spinks Airport RECOMMENDATION: It is recommended that the City Council authorize execution of a new ground lease agreement including mandatory improvements for approximately 37,313 square feet of ground space known as Lease Site E-21 and approximately 38,789 square feet of ground space known as Lease Site E- 22 with Texas Sky Harbor, LLC at Fort Worth Spinks Airport. DISCUSSION: The purpose of this Mayor and Council Communication (M&C) is to recommend that the City Council authorize execution of a new ground lease agreement for approximately 37,313 square feet of ground space known as Lease Site E-21 and approximately 38,789 square feet of ground space known as Lease Site E-22 with Texas Sky Harbor, LLC (TSH) at Fort Worth Spinks Airport. On or about March 15, 2024, in response to a Request for Expressions of Interest (RFEI), staff received a request from TSH to lease ground space known as Lease Site E-21 and E-22 to build box hangars and t-hangars for needed aircraft storage at Fort Worth Spinks Airport (Airport). The total amount of ground space for Lease Site E-21 is approximately 37,313 square feet and the total amount of ground space for Lease Site E-22 is approximately 38,789 square feet. TSH will pay the current published ground rate for the Airport of $0.31 per square foot. Annual Revenue generated from Lease Site E-21 is approximately $11,567.03, paid in monthly installments of approximately $963.92 and annual revenue generated from Lease Site E-22 is approximately $12,024.59, paid in monthly installments of approximately $1,002.05. Rates are in accordance with the Aviation Department's current Schedule of Rates and Charges and the Aviation Department's Leasing Policy. The mandatory improvements for Lease Site E-21 will include no less than a six (6) bay box hangar unit containing six (6) approximately 50 feet wide by 50 feet deep box hangars and mandatory improvements for Lease Site E-22 will include no less than a twelve (12) bay t-hangar unit, both with approximately associated apron and vehicle parking space. Construction will be completed in two phases. Phase one will commence construction for the mandatory improvements on or before the first (1 st) day of the ninth (9th) month after the month in which the Commencement Date of the Lease occurs and construction to be completed no later than twenty-one (21) months from the commencement of construction. Phase two will commence construction for the mandatory improvements on or before the first (1st) day of the sixth (6th) month after the completion of phase one and construction to be completed no later than twenty-four (24) months from the commencement of construction. The term of the new ground lease will be thirty (30) years, effective upon execution of the ground lease agreement, with one (1) option to renew for a ten (10) year term, bringing the lease term to a total of forty (40) years. All terms and conditions of the lease agreement will be in accordance with City of Fort Worth and Aviation Department policies. Rental rates shall be subject to an increase on http://apps.cfwnet.org/council_pacicet/mc_review.asp?ID=32579&counci Idate=10/15/2024 10/ 14/2024 M&C Review Page 2 of 2 October 1st of any given year, based on the upward percentage change in the Consumer Price Index for the Dallas -Fort Worth Metropolitan area. At no time will the adjusted rate exceed the rate that is current in the Schedule of Rates and Charges. Five-year rate adjustments will be applied to the ground rate starting on October 1, 2029, and every fifth year thereafter. ADVISORY BOARD APPROVAL: On July 18, 2024, the Aviation Advisory Board voted to recommend that the City Council approve the ground lease agreement. Fort Worth Spinks Airport is located in Council District 8. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that upon approval of the above recommendation and execution of the lease, funds will be deposited into the Municipal Airport Fund. The Aviation Department (and Financial Management Services) is responsible for the collection and deposit of funds due to the City. TO Fund Department Account Project Program Activity Budget Reference # Amount ID ID I Year (Chartfield 2) I FROM Fund Department Account Project Program Activity Budget Reference # Amount ID ID Year (Chartfield 2) Submitted for City Manaaer's Office bv: Valerie Washington (6199) Oriainatina Department Head: Roger Venables (5402) Additional Information Contact: Ricardo Barcelo (5403) ATTACHMENTS FID TABLE.xlsx (CFW Internal) Form 1295.Ddf (CFW Internal) Location maD Texas Skv Harbor. Dclf (CFW Internal) http:Happs.cfwnet.org/counci l_packet/mc_review. asp?ID=32579&counci Idate=10/ 15/2024 10/ 14/2024