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Home My WebLink AboutContract 58013-T1City Secretary Contract Number 58013-T1 AGREEMENT TERMINATING LEASE FORT WORTH MEACHAM INTERNATIONAL AIRPORT SUITE 340 This AGREEMENT TERMINATING LEASE ("Agreement") is made and entered into by and between the CITY OF FORT WORTH ("Lessor"), 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 S & B, INC. dba WG HENSCHEN CO. ("Lessee"), a Foreign For -Profit Corporation, acting by and through ANDREW SERBAN, its duly authorized VICE-PRESIDENT. RECITALS The following introductory provisions are true and correct and form the basis of this Agreement: A. Lessor previously entered into an Administration Building Office lease agreement at Fort Worth Meacham International Airport (the "Airport") styled as City Secretary Contract No. 58013 ("Previous Lease"). B. The Previous Lease commenced on August 21, 2022 and will expire at 11:59 PM on August 20, 2027, with five (5) options to renew for one (1) year each. C. The Previous Lease required the Lessee to perform mandatory improvements, to include the finish -out of 1036 square feet of office space according to the specifications submitted by the Lessee and approved by the Aviation Systems Director. D. In recognition and consideration of the Lessee's investment in the mandatory improvements, the Previous Lease provided for a rent abatement in the form of a Tenant Improvement Allowance (TIA) which commenced on the Effective Date of the Initial Term of the lease agreement, not to exceed fifty percent (50%) of the monthly rent amount up to $50,000. E. As of August 1, 2024, Lessee has received approximately $19,166.16 of the TIA. OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX F. The Lessee has completed the required mandatory improvements to the satisfaction of the Aviation Systems Director. G. On or about July 25, 2024, the Lessee alerted Aviation staff of its intent to vacate Suite 340 and move its operations off property due to the sale of the business. H. It is the intent of the Lessor and Lessee to terminate the Previous Lease. AGREEMENT 1. TERMINATION OF PREVIOUS LEASE. The Previous Lease is hereby terminated effective upon City Council approval ("Effective Date"). However, such termination shall not constitute (i) a release of the Lessee or any liability accruing or obligation to indemnify under the Previous Lease or (ii) a waiver by the Lessor to enforce any unperformed duties or obligations of the other under the Previous Lease unless expressly provided here in. 2. FORFEITURE OF REMAINING TENANT IMPROVEMENT ALLOWANCE. As a condition of releasing the Lessee fi-om the Previous Lease, the Lessee agrees to abandon any right to the remaining Tenant Improvement Allowance and claims if any to any improvements made by Lessee to the property under the Previous Lease. 2. SURRENDER OR PREMISES. Shall occur no later than 10:00 AM of the Effective Date (unless otherwise agreed between Lessee and New Lessee), Lessee shall vacate the leased premises and deliver all keys to Aviation Department at Suite 330. 3. NOTICES TO LESSEE AFTER EFFECTIVE DATE. All notices to Lessee after the Effective Date shall be addressed as follows: S & B, Inc. dba WG Henschen Co. Andrew Serban 7363 E. Tierra Buena Ln., Suite 100 Scottsdale, AZ 85260 480-348-8279 / aserban@wghco.com Agreement Terminating Lease Meacham Tntemational Airport Suite 340 IN WITNESS WHEREOF, the arties hereto have executed this Agreement in multiples on this the _� day of the _par 12024. CITY OF FORT WORTH: By: [�v Valerie Washington Assistant City Manager Date: (01*10 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 me to be the person whose name is subscribed to the foregoing instrument, and aclmowledged to me 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 VE NDER MY HAND AND SEAL OF OFFICE this I 1 i day r Pf/ , 2024. ARMIDA MAMY GARCIA Notary Public, State of Texas Comm, Expires 07.12.2028 Nofar Public in and for the Notary ID 134989930 y State of Texas p o� Foam°o p° Lo RV$ APPROVED AS TO FORM ATTEST: ;moo a=p AND LEGALITY:,p��°Q°°° x. % .,dhSX�StvA`� pad nEo1kt-4 canddoe Paaliar� ,l�ll By;CandacePagliera(Oct 15,z +15:09CDr) By; Candace Pagliara larmette S. Goodall Assistant City Attorney City Secretary -kC M&C:10/15/2024 K` Approved:24 0871 Agreement Terminating Lease 3 Meacham International Airport Suite 340 OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX LESSEE: ATTEST: S & B, INC. dba WG Imo, SCHEN CO. By: By: drew r )an Vice-Prrresident u Date: STATE OF ARIZONA COUNTY OF / "o,o,-;L BEFORE ME, the undersigned authority, a Notary Public in and for the State of Arizona, on this day personally appeared Andrew Serban, known 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 S & B, Inc. dba WG Henschen Co. and that s/he executed the same as the act of S & B, Inc. dba WG Henschen Co. for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this day S,5 P 7— , 2024. No ry Public in and for the St tc of Arizona JAMES GULLEY Notary Public Arizona 061* Maricopa County Commission # 610714 My Commission Expires July 18, 2025 Agreement Terminating Lease Meacham International Airport Suite 340 M&C Review Page 1 of 2 CITY COUNCIL AGENDA Create New From This M&C DATE: 10/15/2024 REFERENCE **M&C 24- LOG NAME: NO.: 0871 CODE: G TYPE: CONSENT PUBLIC HEARING: Official site of the City of Fort Worth, Texas FORT�TI_I 55FTW TERMINATION AGRMNT FOR SUITE 340—WG HENSCHEN NO SUBJECT: (CD 2) Authorize Execution of an Agreement Terminating City Secretary Contract No. 58013, an Administration Office Building Lease Agreement Including Mandatory Improvements with S & B Inc. (dba) WG Henschen for Suite 340 Located at Fort Worth Meacham International Airport RECOMMENDATION: It is recommended that the City Council authorize execution of an agreement terminating City Secretary Contract No. 58013, an administration office building lease agreement including mandatory improvements with S & B Inc. (dba) WG Henschen for Suite 340 located at Fort Worth Meacham International Airport. DISCUSSION: The purpose of this Mayor and Council Communication (M&C) is to authorize an agreement terminating City Secretary Contract (CSC) No. 58013, an administration office building lease agreement including mandatory improvements with S & B Inc. (dba) WG Henschen (Lessee) for Suite 340 located at Fort Worth Meacham International Airport. On August 09, 2022, through M&C 22-0587 City Council authorized execution of CSC No. 58013, an administration building office lease agreement including mandatory improvements with Lessee for Suite 340 located at Fort Worth Meacham International Airport (Airport). The lease commenced on August 21, 2022 and will expire at 11:59 PM on August 20, 2027, with five (5) options to renew for one (1) year each. The lease required the Lessee to perform mandatory improvements, which included the finish -out of 1,036 square feet of office space according to the specifications submitted by the Lessee and approved by the Aviation Systems Director. In recognition and consideration of the Lessee's investment in the mandatory improvements, the lease provides for a rent abatement in the form of a Tenant Improvement Allowance (TIA) which commenced on the effective date of the initial term of the lease, not to exceed fifty percent (50\%) of the monthly rent amount up to $50,000.00. As of September 1, 2024, the Lessee received approximately $19,964.75 of the TIA. Upon completion of the mandatory improvements, the total investment from the Lessee exceeded $65,000.00. The actual rent remaining due in cash on the initial term of the lease minus the remaining TIA is $24,268.53. On or about July 25, 2024, the Lessee notified staff of its intent to vacate the property due to a sale of the business. It is recommended that in lieu of agreeing to a sublease, the City,regain possession of the now finished -out suite and re -lease it directly. If terminated, the remaining TIA will be forfeited, as it has no cash value and the Lessee will be relieved of its obligation to pay the remaining balance on the lease. This is beneficial to both parties and the City will gain a finished -out suite to re -lease at the full rate as published in the Aviation Department's Schedule of Rates and Charges. Fort Worth Meacham International Airport is located in Council District 2. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that approval of the recommendation will have no material effect on City funds. http: //apps.cfwnet. org/council_packet/inc_review. asp?ID=32577&councildate=10/ 15/2024 10/14/2024 M&C Review Page 2 of 2 TO Fund Department Account Project Program Activity Budget Reference # Amount I ID I I ID I I Year I (Chartfield 2) FROM Fund Department Account Project Program Activity Budget ID ID I I Year Submitted for Citv Manager's Office bv: Oriqinatinq Department Head: Additional Information Contact: Reference # (Chartfield 2) Valerie Washington (6199) Roger Venables (5402) Ricardo Barcelo (5403) ATTACHMENTS Location Map Suite 340.pdf (CFW Internal) Amount http://apps. cfwnet.org/council_packet/mc_review. asp?ID=32577&eouncildate=10/ 15/2024 10/ 14/2024