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HomeMy WebLinkAboutContract 63014CSC No. 63014 MONTH TO MONTH LEASE This Month to Month Lease ("Lease") is made by and between the City of Fort Worth, Texas, a home-iule municipal corporation of the State of Texas ("Lessor"), acting by and through its duly authorized Assistant City Manager, Valerie Washington, and ILOAJP Holdings, LLC ("Lessee"), acting by and through its duly authorized President, Charles E. Bart. WHEREAS, Lessor owns a certain piece of property known as the Controlled Material Storage Building 93, located at 2008 Eagle Parkway, Fort Worth, Texas 76177 located at the Alliance Mainienance Facility (the "Property"), which Property is managed on behalf of Lessor by AFWM Services, LLC ("Property Manager"); and WHEREAS, Lessee has requested, and Lessor has agreed, to grant to Lessee the use of approximately 4,320 square feet of space within the Property in accordance with the terms and conditions set forth within this Lease. WITNESSETH: 1. Premises. Lessor hereby grants to Lessee the use of that certain portion of the Property consisting of approximately 4,320 square feet of space as shown on the attached Exhibit "A" (tire Premises'). a. Use of Premises. The Premises may be used solely for aircraft parts and equipment storage. Under no circumstances may the Premises be used to store or dispose of any hazardous or toxic substances or materials; provided that the presence of fuel, engine oil and/or hydraulic fluids as commonly used for or stored within vehicles parked on or near the Premises will not be deemed a violation of this Section 1. b. Condition of Premises. Lessee taking possession of the Premises shall be conclusive evidence that (a) the Premises is suitable for the purposes and uses for which same are leased; and (b) Lessee waives any and all defects in and to the Premises, its appurtenances, and in all the appurtenances thereto. Further, Lessee takes the Premises and all appurtenances in "AS IS" condition without warranty, expressed or implied, on the part of Lessor. Lessor shall not be liable to Lessee, Lessee's agents, employees, invitees, or guests for any damage to any person or property due to the Premises or any part of any appurtenance thereof being improperly constructed or being or becoming in disrepair. C. Alterations, Additions, and Improvements. Lessee shall make no alterations on or additions to the Premises without the prior written consent of Lessor. If approved by Lessor, any alterations made to the Premises by the Lessee shall be at Lessee's sole cost and expense and shall not interfere with the operations of other Lessees and/or other operations at the Property. If Lessee interference occurs, Lessee will make changes and/or remove the alteration(s) to remedy said interference within five (S) days of notice from Lessor. All alterations, additions and improvements made to fixtures or other improvements placed in or upon the Premises shall be surrendered by Lessee and remain a part of the Premises upon termination of the Lease. At the termination of this Lease, whether by lapse of time or otherwise, Lessee shall; (i) deliver the Premises to Lessor in as good a condition as the same was as of the date of the taking of possession thereof by Lessee, subject only to ordinary wear and tear and damage caused ILOAJP Holdings, LLC Month to Month Lease Page 1 of 9 OFFICIAL RECORD CITY SECRETARY �1 FT. WORTH, TX by casualty or condemnation; and (ii) upon Lessor request, remove any alterations and make any repairs to the Premises as needed in order to comply with the provisions of Section 10 below. d. Abandoned Property. Lessee's personal property not promptly removed from the Premises by Lessee at the termination of this Lease, whether termination shall occur by the lapse of time or otherwise, shall thereupon be conclusively presumed to have been abandoned by Lessee to Lessor. Fixtures attached to the Premises become the property of Lessor, if not removed as required herein. e. Signs. Lessee shall not install signs, advertising media, or lettering in or on the Premises without prior written approval of Lessor. f. Access. Lessee will have access to the Premises twenty-four (24) hours a day, seven (7) days a week. Lessor agrees to provide Lessee with reasonable prior notice in the event Lessor desires to access the Premises; however, Lessor reserves the right to use the Premises in any way that does not materially interfere with Lessee's use of the Premises in accordance with this Lease. 2. Term. The term of this Lease shall commence on the date of its execution ("Effective Date") and continue on a month -to -month basis until either party terminates this Lease, for any reason, by providing the other party with not less than thirty (30) days written notice prior to the effective date of such termination. 3. Lease Fee. a. Lease Fee Amount. Lessee will pay to Lessor a Lease Fee of Three Thousand Six Hundred Dollars ($3,600.00) per month. The Lease Fee is a gross amount that includes all utilities, common area and property management fees for the use of the Premises. b. Lease Fee Due. The Lease Fee is due to Lessor on or before the 1 st day of each calendar month. Lease Fees shall be paid to Lessor via direct deposit into the bank account designated and provided to Lessee by the Property Manager. Paper bank checks will not be accepted. If Lease Fees and/or any other fees due from the Lessee are not received by Lessor as provided herein, then ten (10) days after receipt of written notice from Lessor, all amounts due and payable to Lessor hereunder shall bear interest from the date the payment of fees was due until paid, at a rate of interest equal to (a) eighteen percent (18%) per annum or (b) the highest non -usurious rate permitted by applicable law. 4. Services. All utilities, common area fees, and property management fees related to the Premises are included in the Lease Fee and shall be furnished by Lessor to the Lessee. All other operating costs related to the Premises, including but not limited to security and cleaning, shall be at Lessee's sole cost and expense. If Lessee wants or needs any other items or services while occupying the Premises, then Lessee shall first obtain permission and approval from Lessor to contract, add or install any items and will be responsible for providing same at Lessee's sole cost. Nothing herein shall constitute an obligation of Lessor finds. 5. Indemnity. a. LESSEE SHALL AND DOES AGREE TO INDEMNIFY, PROTECT, DEFEND AND HOLD HARMLESS LESSOR, LESSOR'S OFFICERS, AGENTS, Page 2 of 9 ILOAJP Holdings, LLC Month to Month Lease CjU'U SERVANTS, AND EMPLOYEES (COLLECTIVELY, "INDEMNITEES") FOR, FROM AND AGAINST ANY AND ALL CLAIMS, LIABILITIES, DAMAGES, LOSSES, LIENS, CAUSES OF ACTION, SUITS, JUDGMENTS AND EXPENSES, (INCLUDING REASONABLE COURT COSTS, REASONABLE ATTORNEYS' FEES AND REASONABLE COSTS OF INVESTIGATION), OF ANY NATURE, KIND OR DESCRIPTION TO THE EXTENT ARISING OR ALLEGED TO ARISE BY REASON OF INJURY TO OR DEATH OF ANY PERSON OR DAMAGE TO OR LOSS OF PROPERTY (1) RELATING TO THE USE OR OCCUPANCY OF THE PREMISES BY LESSEE, ITS EMPLOYEES, AGENTS AND LESSEES OR (2) BY REASON OF ANY OTHER CLAIM WHATSOEVER OF ANY PERSON OR PARTY OCCASIONED OR ALLEGED TO BE OCCASIONED BY ANY ACT OR OMISSION ON THE PART OF LESSEE OR ANY LESSEE, EMPLOYEE, DIRECTOR, OFFICER, SERVANT, OR CONTRACTOR OF LESSEE OR (3) BY ANY BREACH, VIOLATION OR NONPERFORMANCE OF ANY COVENANT OF LESSEE UNDER THIS LEASE (COLLECTIVELY, "LIABILITIES"), EXCEPT TO THE EXTENT ARISING OUT OF OR RESULTING FROM THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF ANY INDEMNITEE. IF ANY ACTION OR PROCEEDING SHALL BE BROUGHT BY OR AGAINST ANY INDEMNITEE IN CONNECTION WITH ANY SUCH LIABILITY OR CLAIM, LESSEE, ON NOTICE FROM LESSOR, SHALL DEFEND SUCH ACTION OR PROCEEDING, AT LESSEE'S EXPENSE, BY OR THROUGH ATTORNEYS REASONABLY SATISFACTORY TO LESSOR. THE PROVISIONS OF THIS PARAGRAPH SHALL APPLY TO ALL ACTIVITIES OF LESSEE WITH RESPECT TO THE USE AND OCCUPANCY OF THE PREMISES, WHETHER OCCURRING BEFORE OR AFTER THE COMMENCEMENT DATE OF THE TERM AND BEFORE OR AFTER THE TERMINATION OF THIS LEASE. THIS INDEMNIFICATION SHALL NOT BE LIMITED TO DAMAGES, COMPENSATION OR BENEFITS PAYABLE UNDER INSURANCE POLICIES, WORKERS' COMPENSATION ACTS, DISABILITY BENEFIT ACTS OR OTHER EMPLOYEES' BENEFIT ACTS. b. IT IS AGREED WITH RESPECT TO ANY LEGAL LIMITATIONS NOW OR HEREAFTER IN EFFECT AND AFFECTING THE VALIDITY OR ENFORCEABILITY OF THE INDEMNIFICATION OBLIGATION UNDER THIS SECTION 5, SUCH LEGAL LIMITATIONS ARE MADE A PART OF THE INDEMNIFICATION OBLIGATION AND SHALL OPERATE TO AMEND THE INDEMNIFICATION OBLIGATION TO THE MINIMUM EXTENT NECESSARY TO BRING THE PROVISION INTO CONFORMITY WITH THE REQUIREMENTS OF SUCH LIMITATIONS, AND AS SO MODIFIED, THE INDEMNIFICATION OBLIGATION SHALL CONTINUE IN FULL FORCE AND EFFECT. 6. Waiver of Liability. ALL PERSONAL PROPERTY OF LESSEE, WHETHER PURSUANT TO THIS LEASE OR OTHERWISE, SHALL BE AT THE RISK OF LESSEE ONLY AND NO INDEMNITEES SHALL BE LIABLE FOR ANY LOSS OR THEFT OF OR DAMAGE TO PROPERTY OF LESSEE, ITS EMPLOYEES, AGENTS, PATRONS, INVITEE, OR TO OTHERS, REGARDLESS OF WHETHER SUCH PROPERTY IS ENTRUSTED TO EMPLOYEES OF LESSOR OR SUCH LOSS OR DAMAGE IS OCCASIONED BY Page 3 of 9 ILOAJP Holdings, LLC Montle to Montle Lease 9`z¢/2s CASUALTY, THEFT OR ANY OTHER CAUSE OF WHATSOEVER NATURE, UNLESS DUE IN WHOLE OR IN PART TO THE NEGLIGENCE OF ANY INDEMNITEE. 7. Insurance. Lessee shall procure and maintain at all times while this Lease is in effect, and at Lessee's sole expense, a policy or policies of insurance as specified in this Section 7. a. Commercial General Liability. Lessee shall obtain and maintain commercial general liability insurance covering bodily injury and property damage on a "claims made" basis with limits of no less than Two Million Dollars ($2,000,000.00) per occurrence and Two Million Dollars in the aggregate. b. All Risks Coverage. Lessee shall obtain and maintain all risks property insurance with respect to Lessee's interest in the Premises and all personal property of Lessee located at or within the Premises, with coverages in such amounts and against such risks as are customarily insured against, including, without limitation, business interruption coverage with respect to Lessee's operations at the Premises. C. Worker's Compensation & Employer's Liability. Lessee shall obtain and maintain workers' compensation and employer's liability insurance for all personnel working at the Premises with a limit of One Million Dollars ($1,000,000.00) for each accident for bodily injury or One Million Dollars ($1,000,000.00) for each employee for bodily injury by disease. d. Lessee Insurance Policy Conditions. The parties agree that the coverages and limits provided herein may be adjusted by Lessee upon no less than thirty (30) days prior written notice to Lessor to such coverages and amounts as may be approved by Lessor, such approval to not be unreasonably withheld. Each insurance policy required by this Section shall be issued by an insurer (or insurers) possessing an A-VII A.M. Best Rating or better and of recognized standing and authorized to issue such policy of insurance in the State of Texas. Prior to the Effective Date and upon any modification to or renewal following termination or expiration of any insurance coverages required hereunder, Lessee will provide to Lessor a certificate evidencing the insurance coverages and terms required under this Lease. Lessor reserves the right to require complete, certified copies of all required insurance policies at any time and failure to provide such documentation may be considered an event of default under Section 11 of the Lease. Each policy or policies of insurance as specified in this Section 7 shall name Lessor as an additional insured as its interests may appear and shall cover all public risks related to the leasing, use, occupancy, maintenance, existence or location of the Premises. Lessee shall be named loss payee as its interests may appear with respect to the insurance coverages maintained by Lessee pursuant to this Section 8. Assignment and Subletting. Lessee shall not assign this Lease, or any right of Lessee under this Lease, or sublet the Premises, for consideration or no consideration, whether voluntarily, by operation of law, or otherwise, and any attempt to do so shall be void, and any such attempt shall cause immediate termination of this Lease; all provided that Lessee's contractors and agents may use the Premises in accordance with the terms and provisions hereof. 9. Damage to Premises or Property of Lessor. If, at any time by the acts or omissions of the Lessee, its employees, contractors, or agents of Lessees, the Premises, or any property therein, is Page d of 9 ILOAJP Holdings, LLC Month to Montle Lease damaged or destroyed, Lessee shall be obligated to pay, on demand, all reasonable costs to repair or replace such damaged or destroyed property. 10. Repairs and Maintenance. Lessor has no obligation to make repairs of any sort to the Premises. Lessor's sole obligation hereunder is to make the Premises available to Lessee in accordance with and subject to the covenants, restrictions and limitations set forth herein. Lessee shall, at its expense, use and maintain the Premises in a neat, clean, careful, safe, and proper manner and comply with all applicable laws, ordinances, orders, riles, and regulations of all governmental bodies (state, county, federal, and municipal). Lessee shall be responsible, at its sole expense, for any and all clean up and/or repairs to the Premises due to the use of the Premises, including but not limited to, chemical spills and environmental clean-up if required. At no time may there be any maintenance of any equipment within the Premises and if a spill of any nature takes place arising from the actions of Lessee, Lessee must notify the Property Manager immediately and is responsible for all required clean up and repairs to the extent arising from the spill. 11. Default and Termination. a. Lessee's Default. If Lessee shall fail to perform or observe any of its obligations hereunder then Lessor may terminate this Lease by giving Lessee twenty (20) days prior written notice thereof. If Lessee fails to cure such default within fifteen (15) days of receipt of Lessor's default notice then this Lease and all interest of Lessee hereunder shall automatically terminate, but if Lessee does so cure such default within said 15 days, Lessor's termination notice will be deemed withdrawn. Such rights of Lessor in the case of a default by Lessee hereunder are not exclusive but are cumulative of all other rights Lessor may have hereunder, at law or in equity; and any one or more of such rights may be exercised separately or concurrently to the extent provided by law. b. Lessor's Default. Should Lessor commit a default under this Lease, Lessee may terminate this Lease by giving Lessor twenty (20) days prior written notice thereof. If Lessor fails to cure such default within fifteen (15) days of receipt of notice then Lessee may terminate this Lease. Such rights of Lessee in the case of a default by Lessor hereunder are not exclusive but are cumulative of all other rights Lessee may have hereunder, at law or in equity; and any one or more of such rights may be exercised separately or concurrently to the extent provided by law. C. Termination by Convenience. Either party may terminate this Lease with thirty (30) days written notice to the other party. 12. Notice. Any notice hereunder must be in writing. Notice deposited or sent by nationally recognized overnight courier service, such as, but not limited to, Federal Express, by certified mail with return receipt requested, or by express mail properly addressed, postage paid, shall be effective -upon deposit. Notice given in any other manner herein shall be effective upon receipt at the address of the addressee. For purposes of notice, the addresses of the parties shall, unless changed as hereinafter provided, be as follows: To Lessor: City of Fort Worth Property Management Department 100 Fort Worth Trail, 10" Floor Fort Worth, TX 76102 Page S o 9 ILOAJP Holdings, LLC �u/2¢ Month to Month Lease L With a copy to: City of Fort Worth City Attorney's Office 100 Fort Worth Trail Fort Worth, TX 76102 To Lessee: ILOAJP Holdings, LLC Attn: Charles E. Bart 9415 Weiss Street Dallas, TX 75235 With a copy to: ILOAJP Holdings, LLC 9800 Hillwood Parkway, Suite 300 Fort Worth, Texas 76177 The parties shall have the continuing right to change their respective address by giving at least ten (10) days' notice to the other party. 13. Audit. Pursuant to Chapter 2, Article IV, Division 3, Section 2-134, Administration, Powers and Dirties of the Department of Internal Audit, of the Code of Ordinances of the City of Fort Worth, Lessor may at Lessor's sole cost and expense, at reasonable times during Lessee's normal business hours and upon reasonable notice, audit Lessee's books and records, but only as it pertains to this Lease and as necessary to evaluate compliance with this Lease. 14. Entire Agreement. This Lease constitutes the entire agreement between Lessor and Lessee relating to the use of the Premises and no prior written or oral covenants or representations relating thereto not set forth herein shall be binding on either party hereto. 15. Severability. Any provision hereof which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. To the fullest extent pennitted by law, the parties hereby waive any provision of law which may render any provision hereof void or unenforceable in any respect. 16. Amendment. This Lease may not be amended, modified, extended, or supplemented except by written instrument executed by both Lessor and Lessee. 17. Counterparts. This Lease may be executed in several counterparts, each of which shall be deemed an original, but all of which shall constitute but one and the same document. [SIGNATURES ON FOLLOWING PAGE] Page 6 of 9 ILOAJP Holdings, LLC /]y/� Month to Month Lease L 1r1 � / J/_2¢ 2u In witness whereof, the parties hereto have caused this Lease to be executed on 1- 4 &6V Z¢ , 2025 ("Effective Date"). LESSOR: LESSEE: CITY OF FORT WORTH ILOAJP HOLDINGS, �LLC Valerie Wash ing[on(Mar 26,202517:14 CDT) Valerie Washington Charles E. Bart Assistant City Manager President Approved by: � Marilyn Marvin Director, Property Management Department CONTRACT COMPLIANCE MANAGER By signing, I acknowledge that I am the person responsible for the monitoring and administration of this contract, including ensuring all perfonnance and reporting requirements. Mark n(Mar26, 202509:34 CDT) Mark Brown Lease Manager APPROVED AS TO FORM AND LEGALITY: Caw(ac2 �a Gia�a Candace Pagliara(Mar26, 2509:49 CDT) Candace Pagliara Assistant City Attorney oo° 4- ATTEST: b A2,� aaaynnezq�o44 Jannette S. Goodall City Secretary Form 1295: 2025-1261993 Contract Authorization: M&C: 25- 0259 OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX Page 7 of 9 ILOAJP Holdings, LLC Month to Month Lease Exhibit "A" Aerial View i Rrn:ise� } C?.►5 6uil:ing �3 I: i7�$ Eaa1e Park',ray FortW3rth,TX 761i7 r G px OR p D �`I G ILOAJP Holdings, LLC Month to Month Lease Page S of 9 Exhibit "A" Premises highlighted in red BUIG 3 GIM.S, - FiRST FLOOR PLAN ILOAJP Holdings, LLC Month to Month Lease Page 9 of 9 CITY COUNCIL AGENDA Create New From This M&C Official site of the City of Fort Worth, Texas FoR_ T�H REFERENCE **M&C 25- 211LOAJP HOLDINGS DATE: 3/25/2025 NO.: 0259 LOG NAME: MONTH TO MONTH LEASE CODE: G TYPE: CONSENT PUBLIC NO HEARING: SUBJECT: (CD 10) Authorize the Execution of a Facilities Lease Agreement with ILOAJP Holdings, LLC for Approximately 4,320 Square Feet of Space Located at 2008 Eagle Parkway, Fort Worth, Texas, 76177 within a Portion of what is Known as the Controlled Material Storage Building #3 at the Alliance Fort Worth Maintenance Facility RECOMMENDATION: It is recommended that the City Council authorize the execution of a facilities lease agreement with ILOAJP Holdings, LLC for approximately 4,320 square feet of space located at 2008 Eagle Parkway, Fort Worth, Texas, 76177, within a portion of what is known as the Controlled Material Storage Building #3 at the Alliance Fort Worth Maintenance Facility. DISCUSSION: ILOAJP Holdings, LLC (ILOAPJ) is an aircraft owner that requires industrial storage space for its operations and has requested the use of approximately 4,320 square feet of space within the Controlled Materials Storage Building #3 (Premises) at the Alliance Fort Worth Maintenance Facility (AMF) to be used as warehouse space for the storage of aircraft parts and equipment. As a result of negotiations between the City's Property Management Department, Hillwood Properties (AMF property manager) and ILOAPJ, the parties have agreed to a month to month lease under the following terms: No use of the Central Utility Plant or Industrial Waste Treatment Facility located at the AMF. Rent is a gross monthly fee as follows: Rent Rate $8.00/SF Monthly Rent $3,600.00 Rent includes common area fees and operating expenses. Rent rate reflects fair market value for comparable leases at the AMF. 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 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. TO i Fund I Department Account Project Program Activity Budget Reference # Amount ID ID Year (Chartfield 2) FROM Fund Department Account Project Program Activity Budget Reference # Amount ID ID Year (Chartfield 2) Submitted for City Manaqer's Office by: Valerie Washington (6192) Originating Department Head: Additional Information Contact: ATTACHMENTS Marilyn Marvin (7708) Mark Brown (5179) Marilyn Schoening (7581) 20250130235753892.pdf (CFW Internal) ILOAJP Holdinos FID TABLE.xlsx (CFW Internal) ILOAJP HOLDINGS MONTH to MONTH 2O08 EAGLE PKWY CMS BLD 3.pdf (CFW Internal)