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Home My WebLink AboutContract 53320-A2CSC No. 53320-A2 SECOND AMENDMENT TO THE FACILITIES LEASE AGREEMENT BETWEEN THE CITY OF FORT WORTH AND PARAMOUNT AEROSPACE SYSTEMS USA, INCORPORATED This Second Amendment to the Facilities Lease Agreement ("Second Amendment") is made and entered into between the City of Fort Worth, a home-rule municipal corporation of the State of Texas ("Landlord"), acting by and through Dana Burghdoff, its duly authorized Assistant City Manager, and Paramount Aerospace Systems USA,Incorporated,aDelaware corporation ("Tenant"), acting by and through Brian Greyling, its duly authorized Chief Executive Officer. RECITALS WHEREAS, effective December 23�d, 2019, Landlord and Tenant executed a certain Facilities Lease Agreement (City Secretary Contract No. 53320) (the "Lease") to allow Tenant to lease space within the Structures Building # 161ocated at the Alliance Fort Worth Maintenance Facility; WHEREAS, Landlord and Tenant executed a certain First Amendment to the Lease Agreement (City Secretary Contract No. 53320-A1) to allow Tenant to increase the square feet of the Leased Premises; and WHEREAS, the Lease expiration date is December 22, 2024 and Tenant requests to amend the Lease to add five (5) years to the Term in lieu of exercising its Renewal Option. NOW THEREFORE, in consideration of the terms set forth in this Second Amendment the parties agree to amend the Lease as of the executed date herein as follows: 1. Article II, Section 2.1(a) of the Lease is hereby deleted in its entirety and replaced with the following: (a) Term. Landlord and Tenant agree that for a term of five (5) years, commencing on the 1st __ day Of February _ , 2025 and expiring on the 3�St _ day of �anuary , 2030, unless earlier terminated as provided herein (the "Term"): ►� Article II, Section 2.1 (b)(i)-(vi) of the Lease is hereby deleted in its entirety. OFFICIAL RECORD CITY SECRETARY Second Amendment to City Secretary Contract No. 53320 FT. WORTH, Tx 1 3. Article IX, Section 9.1 of the Lease is hereby deleted in its entirety and replaced with the following: Base Rent. During the entirety of the Lease term, Tenant agrees to pay "Base Rent" to Landlord, without demand or notice, in advance in the following amounts (prorated on a per diem basis for any partial month) which Base Rent is based upon 23,763 square feet as follows: Period Base Rent Rate Monthly Annually Month 1 through Month 12 $1.25/SF $2,475.31 $29,703.75 Month 13 through Month 24 $1.35/SF $2,673.34 $32,080.05 Month 25 through Month 36 $1.40/SF $2,772.35 $33,268.20 Month 37 through Month 48 $1.45/SF $2,871.36 $34,456.35 Month 49 through Month 60 $1.50/SF $2,970.38 $35,644.50 4. Article XIII, Section 13.3 of the Lease is hereby amended by adding the following provision: On or before February ls' of each year of the Term, Tenant shall provide to Landlord certificates of insurance evidencing the insurance coverage required under this Lease. Landlord reserves the right to require complete, cert�ed copies of all required insurance policies at any time during the Term of the Lease and failure to provide such documentation may be considered an event of default under Section 17.1(b) of the Lease. �� All other terms and conditions of the Lease that are not expressly amended herein or directly in conflict with the provisions and conditions of this Second Amendment shall remain in full force and effect. (Signatures Appear on Following Page) Second Amendment to City SecretaryContract No. 53320 2 EXECUTED this 31st day of �anuary LESSEE: CITY OF FORT WORTH ,�aha �r�qGc�lo f�' oa�,., ��zoz� �� ST, Dana Burghdoff Assistant City Manager LESSOR: RAMOUNT AEROSPACE SYS MS USA, INC. ian rey� Chi Executive O icer Date: �� C� �-� � _ CONTRACT COMPLIANCE MANAGER By signing, I acknowledge that I am the person responsible for the monitoring and adininistration of this contract, including ensuring all performance and reporting requirements. �1 Mark Bro en (Jan 29, 202510-41 C5T) Mark Brown Lease Manager APPROVED AS TO FORM AND LEGALITY: ��e �� a�da�e Pagra�a ��an z9, zs io�49 �ST, Candace Pagliara Q 4 onn�. � oF f�Rt�°o o° �� p.i a �o Ovo °=d E�TTE.�T: P�p'f °oo �°�`d a��b nEXASo�d � � �� Jannette S. Goodall City Secretary Form 1295: 2024-1250520 Contract Authorization: M&C: 25-0096 Date: 1/28/2025 OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX Second Amendment to City SecretaryContract No. 53320 3 2025. I ` CITY COUNCIL AGENDA �C�RT�ORTII _� Create New From This M&C DATE: CODE: 1/28/2025 REFERENCE **M8C 25- NO.: 0096 G TYPE: CONSENT LOG NAME: PUBLIC HEARING: 21 PARAMOUNT SECOND LEASE AMENDMENT � SUBJECT: (CD 10) Authorize Execution of a Second Amendment to the Facilities Lease Agreement with Paramount Aerospace Systems USA, Incorporated to Extend the Lease Term for an Additional Five (5) Years and to Revise the Rental Rate for the Leased Premises Used as Office Space in the Structures Building #16 Located at 2070 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 second amendment to the Facilities Lease Agreement with Paramount Aerospace Systems USA, Incorporated to extend the lease term for an additionai five (5) years and to revise the rental rate for the leased premises used as office space in the Structures Building #16 located at 2070 Eagle Parkway, Fort Worth, Texas 76177 at the Alliance Fort Worth Maintenance Base. DISCUSSION: On December 23, 2019, the City of Fort Worth (City) entered into a lease agreement with Paramount Aerospace Systems USA, Incorporated (Paramount) (City Secretary Contract No. 53320) to lease approximately 21,624 square feet of space in the Structures Building #16 located at 2070 Eagle Parkway, Fort Worth, Texas 76177 at the Alliance Fort Worth Maintenance Facility (the Lease). On May 15, 2023, City and Paramount executed a first amendment to the Lease (City Secretary Contract No. 53320-A1) to allow Paramount to increase the space leased to them to include approximately 23,763 square feet. The Lease expiration date is December 22, 2024 and City Property Management Department and Paramount have agreed to amend the Lease a second time to extend the term for an additional five (5) years and to revise the rental rate, based upon 23,763 square feet, as follows: Term Rent Rate Monthly Annually Month 1 through Month 12 $1.25/SF $2,475.31 $29,703.75 Month 13 through Month 24 $1.35/SF $2,673.34 $32,080.05 Month 25 through Month 36 $1.40/SF $2,772.35 $33,268.20 Month 37 through Month 48 $1.45/SF $2,871.36 $34,456.35 Month 49 through Month $1.50/SF $2,970.38 $35,644.50 60 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 the second amendment to the lease agreement, funds will be deposited into the Alliance Maintenance I� �� 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 ; Project ; Program Activity � Budget ; Reference #� Amount ; � ID � ; ID ! ; Year ; (Chartfield Z) � f FROM '; Fund � Department ; Account � Project ; Program ' Activity ; Budget ; Reference # Amount 3 E ID ' � ID ; 3 ' Year Chartfield 2 _.a__ _.�. _._._ ._e___�,_.________ _ �..�_ �..__ _. � � _ _ �_____ .�__ � ___.___,..� _,____._ � _._____..�__�_______.w.� _..�._..�. ..�,_.__a Submitted for City Manager's Office by_ Dana Burghdoff (8018) Originating Department Head: Marilyn Marvin (7708) Additional Information Contact: Mark Brown (5197) Marilyn Schoening (7581) _ _ . _ ___ _ _ . _ . _ __ ATTACHMENTS Certificate Facility lease Dec24 Signed.pdf (CFW Internal) FID Table for Paramount 2nd Amendment.xlsx (CFW Internal) PARAMOUNT 2ND AMENDMENT MAP.pdf (CFW Internal) '`II \