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Home My WebLink AboutContract 57714-A1CSC No. 57714-A1 FIRST AMENDMENT TO THE GROUND LEASE BETWEEN CITY OF FORT WORTH AND PARAMOUNT AEROSPACE SYSTEMS USA, INCORPORATED This First Amendment to the Ground Lease ("First Amendment") is made and entered into between the City of Fort Worth, a home-rule municipal corporation of the State of Texas ("City"), acting by and through Dana Burghdoff, its duly authorized Assistant City Manager, and Paramount Aerospace Systems USA, Incorporated, a Delaware corporation ("Paramount"), acting by and through Brian Greyling, its duly authorized Chief Executive Officer. RECITALS WHEREAS, on June 15th, 2022, City and Paramount executed a certam Ground Lease (City Secretary Contract No. 57714) (the "Agreement") to allow Paramount to construct and operate a jet engine test cell facility includ'mg approxirriately 13,500 square feet of ground space located at the Alliance Fort Worth Mamtenance Facility; and WHEREAS, the Agreement expiration date is December 22, 2024 and Paramount requests to amend the Agreement to add five (5) years to the Term in lieu of exercising its Renewal Term option. NOW THEREFORE, m consideration of the terms set forth in this First Amendment the parties a�-ee to amend the Agreement as of the executed date herein as follows: 1. Article II, Section 2.1(a) of the Agreement is hereby deleted in its entirety and replaced with the following: (a) Term. City and Paramount agree that for a term of five (5) years, commencing on the 1st day of February__ , 2025 and expiring on the 31st day of January , 2030, unless earlier terminated as provided herein (the "Term"): 2. Article II, Section 2.2 of the Agreement is hereby deleted in its entirety. OFFICIAL RECORD First Amendment to City Secretary Contract No. 57714 CITY SECRETARY FT. WORTH, TX 1 3. Article III, Section 3.1 of the Agreement is hereby deleted in its entirety and replaced with the following : Rent. During the entirety of the Term, for the use and occupancy of the Lease Premises, Paramount shall pay to City, without demand or notice, in advance in the following amounts (prorated on a per diem basis for any partial month) the Rent as follows: Period Base Rent Rate Monthly Annually Month 1 through Month 60 $.65/SF $731.25 $8,775.00 4. Article X, Section 10.1 of the Agreement is hereby amended by adding the following section: 10.1.7 Evidence of Property Insurance. On or before February lst of each year of the Term, Paramount shall provide to City cert�cates of insurance evidencing the insurance coverage required under this Agreement. City reserves the right to require complete, certified copies of all required 'msurance policies at any time during the Term of the Agreement and failure to provide such documentation may be considered an event of default under Section 15.1 of the Agreement. � All other terms and conditions of the Agreement that are not expressly amended herein or directly in conflict with the provisions and conditions of this First Amendment shall remain in full force and effect. (Signatures Appear on Following Page) First Amendment to City SecretaryContract No. 57714 2 EXECUTED this �st__ day of February LESSEE: CITY OF FORT WORTH Ddnd Su�qHdaf-F DanaL'urkhdo((fFc61, 02S13:OOCSTI Dana Burghdoff Assistant City Manager LESSOR: �ARAMOUNT AEROSPACE � SYST�EMS USA, INC. C'�ef Executive bfficer Date: �:�.� �/ �--:,�j • _ CONTRACT COMPLIANCE MANAGER By signing, I acknowledge that I am the person responsible for the monitoring and administration of this contract, including ensuring all performance and reporting requirements. �l Mark Bro ��n (Jan 29.202510:29 CST) Mark Brown Lease Manager APPROVED AS TO FORM AND LEGALITY: c�uuJ�ce- Pa�rCuu�� CandacePagl�iara(Jan ,2025103�CST) Candace Pagliara o °FpRT 4� p �l�0000000a �L(�j c�'° �9�0 a!`o -10 ATTEST: '"° � ° °��*°°oo o°*� �IIab tEX A54p � � j� �me� bn000a Jannette S. Goodall City Secretary Form 1295: 2024-1250524 Contract Authorization: M&C: 25-0097 Date: 1/28/2025 OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX First Amendment to City SecretaryContract No. 57714 3 f►�1➢.T.� I�. � CITY COUNCIL AGENDA FflRT WOR?H �� Create New From This M&C DATE Cd�]!L 1/28/2025 REFERENCE "*M&C 25- NO.: 0097 G TYPE: CONSENT LOG NAME PUBLIC HEARING: 21 PARAMOUNT FIRST GROUND LEASE AMENDMENT � SUBJECT: (CD 10) Authorize Execution of a First Amendment to the Ground Lease with Paramount Aerospace Systems USA, Incorpo�ated to Extend the Lease Term for an Additional Five (5) Years and to Revise the Rental Rate for the Leased Premises Used as a Jet Engine Test Facility Located 2000 Eagle Parkway, Fort Worth, Texas 76177 at the Alliance Fort Worth Maintenance Base RECOMMENDATION: It is recommended that the City Council authorize the execution of a first amendment to the Ground Lease with Paramount Aerospace Systems USA, Incorporated to extend the Ground Lease term for an additional five (5) years and to revise the rental rate for the leased premises used as a jet engine test facility located 2000 Eagle Parkway, Fort Worth, Texas 76177 at the Alliance Fort Worth Maintenance Base. DISCUSSION: On June 15, 2022, the City of Fort Worth (City) entered into a Ground Lease with Paramount Aerospace Systems USA, Incorporated (Paramount) (City Secretary Contract No. 57714) to lease approximately 13,500 square feet of space at the Fort Worth Alliance Maintenance Facility located at 2000 Eagle Parkway, Fort Worth, Texas 76177 (the Lease). Under Mayor and Council Communication 19-0348, City agreed to enter into the Lease and for the Lease to be coterminous with a separate facility lease agreement that was executed by the City and Paramount on December 23, 2019. The Lease expiration date is December 22, 2024 and City Property Management Department and Paramount have agreed to amend the Lease to extend the term for an additional five (5) years and to revise the rental rate, based upon 13,500 square feet, as follows: __�,.__ _ __ __ _.____._ , _--- ----_ _ ___.___ ___. _._ __ _ _..�._.�. Term Rent Rate Monthly Annually Month 1 through Month 60 $0.65/SF $731.25 $8,775.00 This property is located in Council District 10. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that upon approval of the above recommendation and execution of this first amendment to the lease agreement, funds will be deposited into the Alliance Maintenance Facility Fund. The Property Management Department (and Financial Management Services) is responsible for the collection and deposit of funds due to the City. Fund ' Department ' Account � ID DM Fund ;M Department4 '' Account ID Project ID Project ID Program f Activity Program Activity Budget ! Reference Year I (Chartfield Budget ; Reference # Year ; (Chartfield 21 Amount Amount � l Submitted for City Manager's Office by_ Originating Department Head: Additional Information Contact: Dana Burghdoff (8018) Marilyn Marvin (7708) Mark Brown (5197) Marilyn Schoening (7581) ATTACHMENTS Certificate Ground lease Dec24 Signed.pdf (CFW Internal) FID Table for Paramount Ground Lease 1st Amendment.xisx (CFW Internal) PARAMOUNT 1ST GROUND LEASE AMENDMENT MAP.pdf (Public) � \