HomeMy WebLinkAboutContract 38970-R2CSC #38910-R2
FORTWORTH
April 8, 2025
The Armory Building, LLC
1289 Hemphill
Fort Worth, Texas, 76104
Re: Second five (5) year lease renewal for the lease (CSC# 38910-R1, CSC# 38910 and
CSC# 38910-E1) with the Armory Building, LLC to lease 1289 Hemphill Street, Suites 151
and 251, for use as office space for the FWPD.
Dear Mr. Dernehl:
Per section 3.04 of the lease (CSC# 38910) between the City of Fort Worth and The Armory
Building, LLC, this letter shall serve as notice that the City of Fort Worth would like to exercise
the second five (5) year renewal option to renew the lease at 1289 Hemphill suite 151 and 251.
The terms and rental payments for the renewal term are as follows:
Renewal Term
Year 1:
June 1, 2025 - May 31, 2026
Year 2:
June 1, 2026 - May 31, 2027
Year 3:
June 1, 2027 - May 31, 2028
Year 4:
June 1, 2028 - May 31, 2029
Year 5:
June 1, 2029 - May 31, 2030
Monthly Rental Payment
$27,697.42
$28,528.34
$29,384.19
$30,265.72
$31,173.69
If The Armory Building, LLC is in agreement with this renewal and rental rate, please have this
renewal notice signed by the appropriate parry and email back to Nita Shinsky at
Nita. Shinskvnfortworthtexas.2ov or mail to Mark Brown, City of Fort Worth, Property
Management, 100 Fort Worth Trail. FL 10, Fort Worth, Texas, 76102, for execution and the
assignment of a contract number in the Office of the City Secretary of Fort Worth. A fully
executed copy will be returned to you for your files.
The signatures below indicate each parry's concurrence with these terms.
[SIGNATURES ON THE FOLLOWING PAGE] OFFICIAL RECORD
CITY SECRETARY
Fort Worth FT. WORTH, TX
A,,.Am� PROPERTY MANAGEMENT DEPARTMENT
I I I I REAL PROPERTY DIVISION
THE CITY OF FORT WORTH * 100 FORT WORTH TRAIL FL 10 * FORT WORTH, TEXAS 76102
1964. 1993 • 2ou (817) 392-8367
LESSEE:
CITY OF FORT WORTH
Bv: Valerie Washington (Apr 23, 2025 14:04 CDT)
Valerie Washington
Assistant City Manager
LESSOR:
THE ARMORY BUILDING, LLC
By:
Gina Dernehl
Manager
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.
Name:
5k,Z� �a
Title: Sr. Planner
APPROVED AS TO FORM AND LEGALITY:
Candace Pq fiaKa
By: Candace Pagliara (Apr 9, 20 13:34 CDT)
Candace Pagliara
Assistant City Attorney
ATTEST:
By:
Jannette S. Goodall
City Secretary
Form 1295: Not required
Contract Authorization:
M&C: C-23631
Date: 7/14/2009
OFFICIAL RECORD
CITY SECRETARY
Fort Worth FT. WORTH, TX
All-Am� PROPERTY MANAGEMENT DEPARTMENT
I I I I REAL PROPERTY DIVISION
THE CITY OF FORT WORTH * 100 FORT WORTH TRAIL FL 10 * FORT WORTH, TEXAS 76102
1964 • 1993 • 2011 (817) 392-8367
M&C Review
Page 1 of 2
Official site of the City of Fort Worth, Texas
CITY COUNCIL AGENDA Foy T`f'`'
COUNCIL ACTION: Approved on 7/14/2009 - Ord. No. 18701-07-2009
DATE: 7/14/2009 REFERENCE NO.: **C-23631 LOG NAME: 171289HEMPHILL
CODE: C TYPE: CONSENT PUBLIC NO
NO
SUBJECT: Authorize the Execution of a Lease Agreement with The Armory Building, LLC, for Office
Space Located at 1289 Hemphill Street, Fort Worth, Texas, for the Fort Worth Police
Department and Adopt Appropriation Ordinance
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the City Manager to execute a Lease Agreement with The Armory Building, LLC, for
approximately 14,649 square feet of office space for an annual rent of $15.00 per square foot, with a three
percent annual escalation beginning in year three, located at 1289 Hemphill Street for a ten year term from
October 1, 2009, to September 30, 2019;
2. Authorize the City Manager, or his designee, to renew the Lease Agreements at the City's option for up
to two successive five year terms provided that sufficient funds have been appropriated to satisfy the City's
obligations during the renewal term;
3. It is recommended that the City Council adopt the attached supplemental appropriation ordinance
increasing the appropriations in the Federal Awarded Assets Fund in the amount of $103,105.87 and
decreasing the unreserved, undesignated fund balance by the same amount for the purpose of funding
Information Technology Services.
DISCUSSION:
The Fort Worth Police Department NPD2 (NPD2) has been leasing property at 1000 West Magnolia
Avenue since September 1, 2002. That lease expired August 31, 2007, and since they have been leasing
the property on a month -to -month basis. By October 1, 2009, the Fort Worth Police Department Gang Unit
must vacate space located at 1800 University Drive, the former City of Fort Worth Health Department
Building, because that location has been leased to the Botanic Research Institute of Texas, Inc. (BRIT).
The Police Department would like to house NPD2 and the Gang Unit together at 1289 Hemphill Street.
Staff recommends the following terms for the Lease Agreements with The Armory Building, LLC:
14,649 square feet of Building space at 1289 Hemphill Street, Suites 151 and 251, shall be leased at an
annual rent of $15.00 per square foot, or $18,311.25 monthly for the first year, with a three percent
annual escalation beginning in year three;
10 year lease term is from October 1, 2009, to September 30, 2019;
The Police Department is responsible for all utility payments that come due and payable during the term
of the lease;
The Lessor will pay any brokerage commissions arising from the lease; and
The City of Fort Worth will be required to pay a cancellation penalty in the event of early termination of
the lease because the landlord will be constructing $1,200,000.00 in improvements to the Armory
Building. These costs will be amortized over the ten year period of the lease. Therefore, for example, if
the lease is terminated in year seven, the City will be required to pay a penalty of $360,000.00.
Completion of the office space will also include approximately $103,105.87 for Information Technology
Services (ITS).
This Agreement may be renewed for up to two successive five year terms at the City's option. This action
does not require specific City Council approval provided that the City Council has appropriated sufficient
funds to satisfy the City's obligations during the renewal term.
http://apps.cfwnet.org/council_packet/mc review.asp?ID=12029&councildate-7/14/2O09 12/10/2014
M&C Review Page 2 of 2
The Armory Building, LLC, is agreeable to these terms.
The Armory Building is located in COUNCIL DISTRICT 9, Mapsco 76R.
FISCAL INFORMATIONICERTIFICATION:
The Financial Management Services Director certifies that funds will be included in the City Manager's
Proposed 2009-2010 Budget in the General Fund and Crime and Control Prevention District Fund. Upon
approval of the above recommendations and adoption of the attached supplemental appropriation
ordinance, funds will be available in the current operating budget, as appropriated of the Federal Awarded
Assets Fund.
TO Fund/Account/Centers
Submitted for Citv Manaaer's Office bv:
Oriainatina Department Head:
Additional Information Contact:
ATTACHMENTS
171289HEMPHILL AO.doc
FROM Fund/Account/Centers
GR79 539120 0359410 $108.505.15
GG01 539120 0356304 $111.229.85
R107 539120 0356000 $103.105.87
Thomas Higgins (6192)
Jay Chapa (5804)
Cynthia Garcia (8187)
Katherine Davenport (7923)
http://apps.cfwnet.org/council packet/me review. asp?ID=12029&councildate=7/14/2009 12/10/2014