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HomeMy WebLinkAboutContract 63341LEASE AGREEMENT This Lease Agreement (“Agreement”) is entered into by and between Boykin Land Company, LLC, a limited liability company, acting by and through it duly authorized President, Seth Crawford (“Lessor”), and City of Fort Worth, Texas, a home-rule municipal corporation of the State of Texas, acting by and through its duly authorized Assistant City Manager, Valerie Washington (“Lessee”). WHEREAS, Lessor owns a certain piece of property on which is situated an industrial warehouse, located at 400 East Vickery, Suite 200 and 300, Fort Worth, Texas 76102 (the “Property”), and WHEREAS, Lessee has requested, and the Lessor agrees to grant to Lessee, the use a portion of the Property for storage in accordance with the terms and conditions of this Agreement. W I T N E S S E T H: 1.Premises. Lessor hereby grants Lessee the right to occupy approximately 25,190 square feet of the Property (“Premises”) as described in Exhibit “A” for storage per the terms of this Agreement. Under no circumstances during the Agreement will Lessee use or cause to be used on the Premises any hazardous or toxic substances or materials, or store or dispose of any such substances or materials on the Premises; provided that the presence of fuel, engine oil and hydraulic fluids as commonly used for or stored in vehicles parked on the Premises will not be deemed a violation of this Section. Lessee shall not install signs, advertising media, or lettering in or on the Premises without prior written approval of Lessor. 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, the 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 Agreement. 2.Condition of Premises. Lessee taking possession of the Premises shall be conclusive evidence that (a) the Premises are 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, Lessees, 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. Notwithstanding the foregoing, Lessor represents, warrants and covenants that, as of the Commencement Date (as defined below in the Lease Term), there are no hazardous substances located on or in any part of the Premises except those located in strict compliance with all federal, state and local statutes, by-laws, regulations or guidelines, and the Lessor agrees to and does hereby indemnify and save harmless the Lessee and its directors, officers, employees, agents, successors and assigns, from all costs, losses, liabilities, damages, fines, claims, suits, causes of action and judgments of any kind whatsoever, and all reasonable expenses incurred, including, without limitation, all legal fees, costs and disbursements, which at any time and from time to time may be paid or incurred by or asserted against the Lessee or its directors, officers, employees, agents successors or assigns, as a direct or indirect result of the presence of any hazardous substances on or under the Premises as of the Commencement Date. This indemnification shall continue for the full term of this Agreement and any extensions or renewals thereof and shall survive the expiration or sooner termination of this Agreement. 3.Lease Term: This Agreement commences on June 1, 2025, and expires on May 31, 2030, unless sooner terminated by virtue of a provision of this Agreement (“Lease Term”). 4.Security Deposit: A security deposit in the amount of $26,240.00 (the “Security Deposit”) is due and payable upon execution of this Agreement. The Security Deposit shall be held by Lessor without liability for interest and as security for the performance by Lessee of Lessee's covenants and obligations under this Agreement, it being expressly understood that the Security Deposit shall not be considered an advance payment of rent or a measure of Lessee’s liability for damages in case of default by Lessee. Absent default by Lessee, at the end of the Lease Term, the Security Deposit will be returned to Lessee no later than (30) thirty days after the expiration of the Lease or applied to the last month’s rent. 5.Base Rent:The following chart is Lessee’s initial monthly payment broken down into its components. This chart, however, does not supersede the specific provisions contained elsewhere in this Agreement: 6.Services. All utilities (water, electricity, etc.), common area fees, and property management fees for the Premises are included in the base rent and shall be furnished by the Lessor to the Lessee at Lessor’s sole cost and expense. Security and cleaning, if desired by Lessee, shall be at Lessee’s sole cost and expense. If, during the Lease Term, Lessee desires any other items or services for Premises, then Lessee shall first obtain written approval from the Lessor to contract, add, or install any of the requested items or services and will be responsible for providing same at Lessee’s sole cost. 7.Renewal.If Lessee is not in default under the terms of this Agreement, Lessee shall have the option to extend the Lease Term for one (1) additional period of twenty-four (24) months, commencing upon the expiration of the initial Lease Term, at a monthly rent of $28,340.00. Lessee must exercise this option by providing written notice to Lessor at least three (3) months prior to the expiration of the current Lease Term. All other terms and conditions of the Agreement shall remain the same during the extended term. 8.Purchase Option.Lessee shall have two options to purchase the Property during the Lease Term under the following terms and conditions:(1) if the purchase of the Property is closed on or before December 1, 2026, the purchase price shall be $6,000,000.00; and (2) if the purchase of the Property is closed on or before March 31st, 2027, the purchase price shall be $6,180,000.00. Should Lessee wish to purchase the Property, Lessee shall provide written notice to Lessor of its intent to exercise this option at least ninety (90) days prior to the desired closing date. Thereafter, Lessee and Lessor shall enter into a purchase and sale agreement for the Property including a thirty (30) day inspection period beginning from the date that Lessee and Lessor execute the purchase and sale agreement for the Property. The closing of the purchase shall occur within thirty (30) days following the expiration of the inspection period and be subject to Fort Worth City Council approval. Lessee shall deposit earnest money in the amount of two percent (2%) of the purchase price, in accordance with the purchase and sale agreement, which shall be applied toward the purchase price at closing. 9.Right of First Refusal. During the Lease Term, Lessee shall have an ongoing right of first refusal to purchase the Property. In the event that the Lessor receives a bona fide offer from a third party to purchase the Property, Lessor shall provide Lessee with written notice of the offer, including its terms and conditions. Lessee shall then have ten (10) days from receipt of such notice to match the offer and provide notice to Lessor of Lessee’s exercise of its right to purchase on the same terms. Thereafter, Lessee and Lessor shall enter into a purchase and sale agreement for the Property including a thirty (30) day inspection period beginning from the date that Lessee and Lessor execute the purchase and sale agreement for the Property. The closing of the purchase shall occur within thirty (30) days following the expiration of the inspection period and be subject to Fort Worth City Council approval. Lessee shall deposit earnest money in the amount of two percent (2%) of the purchase price, in accordance with the purchase and sale agreement, which shall be applied toward the purchase price at closing. If Lessee does not exercise its right within the specified time, Lessor may proceed with the third-party offer. The failure of Lessee to exercise the option to purchase herein shall in no way release this right of first refusal and Lessee shall be provided with notice of any future offers to purchase. 10. Alterations, Additions, Improvements, and Signage. Lessee shall make no alterations on or additions to the Premises without the prior written consent of Lessor. If approved by the 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 interference occurs, Lessee will make changes and/or remove the alteration to remedy said interference within five (5) days of notice from Lessor. All alterations, additions and improvements made to or fixtures or other improvements placed in or upon the Premises shall be deemed a part of the Premises and the property of Lessor at the end of the Lease Term. All such alterations, additions, improvements, and fixtures shall remain upon and be surrendered with the Premises as a part thereof at the termination of this Agreement unless otherwise agreed in writing by the parties. Lessee may, at its sole option and expense, remove any Lessee alterations at any time during the Lease Term. At the termination of this Agreement, 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 by casualty or condemnation. 11.Intentionally Omitted. 12.Waiver of Liability. ALL PERSONAL PROPERTY OF LESSEE, INCLUDING TRUCKS USING THE PREMISES, WHETHER PURSUANT TO THIS AGREEMENT OR OTHERWISE, SHALL BE AT THE RISK OF LESSEE ONLY, AND LESSOR SHALL NOT BE LIABLE FOR ANY LOSS OR THEFT OF OR DAMAGE TO PROPERTY OF LESSEE, ITS EMPLOYEES, AGENTS, PATRONS, INVITEE, OR TO OTHERS, OR SUCH LOSS OR DAMAGE IS OCCASIONED BY CASUALTY, THEFT OR ANY OTHER CAUSE OF WHATSOEVER NATURE, UNLESS DUE IN WHOLE OR IN PART TO THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF LESSOR. 13.Insurance. Lessee will self-insure for all public risks related to Lessee’s leasing, use, occupancy, maintenance of the Premises. 14.Abandoned Property. Lessee’s personal property not promptly removed by Lessee from the Premises at the termination of this Agreement, 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. 15.Assignment and Subletting. Lessee shall not assign this Agreement, or any right of Lessee under this Agreement, 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 Agreement; all provided that Lessee’s contractors, subcontractors and agents may use the Premises in accordance with the terms and provisions hereof. 16.Damage to Premises or Property of Lessor. If, at any time during the Lease Term, by the acts or omissions of the Lessee, its employees, contractors, or agents of Lessees, the Premises, or any property therein is damaged or destroyed, Lessee shall be obligated to timely pay, reasonable costs to repair or replace such damaged or destroyed property. 17.Repairs and Maintenance. Lessor has no obligation to make repairs of any sort to the Premises save and except the structural building issues, roof, and building systems maintenance. Lessor’s obligation hereunder being 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, rules, and regulations of all governmental bodies (state, county, federal, and municipal). Lessee shall be responsible, at their sole expense, for any and all clean up and/or repairs to damage the Premises due to 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 vehicles or 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. Notwithstanding the foregoing, Lessor will be solely responsible for any hazardous waste, remediation, environmental spills, damage or clean up from any activity that happened prior to the Commencement Date pursuant to Section 2 above. 18.Severability. If any clause or provision of this Agreement is or becomes illegal, invalid or unenforceable because of present or future laws or any rule or regulation of any governmental body or entity, effective during the Lease Term, the intention of the parties hereto is that the remaining parts of this Agreement shall not be affected thereby unless such invalidity is, in the sole determination of the Lessor, essential to the rights of both parties, in which event Lessor has the right, but not the obligation, to terminate the Agreement on written notice to Lessee. 19.Default and Termination. (a)Lessee’s Default. If Lessee shall fail to perform or observe any of its obligations hereunder then Lessor may, following twenty (20) days prior written notice and opportunity to cure, pursue any of the following remedies: i.Terminate this Agreement; ii.Require all future payments to be made by cashier’s check, money order or wire transfer after the first time any check is returned for insufficient funds, or the second time any sum due hereunder is more than five (5) days late; iii.Cure such event of default for Lessee at Lessee’s expense; and/or iv.Lessor shall be entitled to receive interest on any unpaid item of Rent from the date initially due ) at a rate equal to the lesser of twelve percent (12%) per annum or the highest rate permitted by Law. 20.Lessor's Default. In the event of any breach or default by Lessor of any obligation under this Agreement, Lessee will deliver to Lessor written notice and Lessor will have twenty (20) days following receipt of such notice to cure such breach or default, or in the event the breach or default. If Lessor fails to cure a breach or default of the Agreement within the time periods set forth in the preceding sentence, then Lessee shall be entitled, (i) to an abatement of Rent from the date the breach or default first occurred until such time as the breach or default is cured, and (ii) to cure any default that Lessor fails to cure in a timely manner, in which event Lessor shall be liable to reimburse Lessee for expenses incurred by Lessee in connection with curing Lessor’s breach, and, at Lessee’s option, Lessee may offset against Lessee’s unpaid Rent obligations to Lessor any and all costs incurred by Lessee as a result of Lessor’s breach or default. 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 Lessee: To Lessor: City of Fort Worth Boykin Land Company Lease Management 209 W 2nd Street, Ste. 150 Property Management Department Fort Worth, TX 76102 100 Texas Trail Fort Worth, TX 76102 With a copy to: With a copy to: City Attorney’s Office Baker Monroe Huston, PLLC City of Fort Worth Attn: Justin P. Huston 100 Texas Trail 1612 Summit Ave., Ste. 100 Fort Worth, TX 76102 Fort Worth, TX 76102 The parties hereto have the continuing right to change their respective address by giving at least ten (10) days’ notice to the other party. 21.Holding Over. If Lessee remains in possession of the Premises after the expiration of the tenancy created hereunder and without the execution of a new lease, Lessee shall be deemed to be occupying the Premises as a Lessee at will and subject to all of the provisions of this Agreement except those relating to term and except that the Base Rent shall be (i) one and a half (150%) the amount payable during the last month of the Lease Term (without waiver of Lessor’s right to recover damages as permitted by this Agreement or by law). 22.Entire Agreement. This Agreement 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. 23.Amendment. This Agreement may not be amended, modified, extended, or supplemented except by written instrument executed by both Lessor and Lessee. 24.Counterparts. This Agreement 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] In witness whereof, the parties hereto have caused this Agreement to be executed this ______ day of ___________, 2025 LESSEE: LESSOR: CITY OF FORT WORTH, BOYKIN LAND COMPANY, LLC, a Texas home-rule municipal corporation a limited liability company By: By: _____________________________ Valerie Washington Assistant City Manager Name: _________________________ Date: ___________________________Title: _____________________________ Date: _____________________________ APPROVED BY:CONTRACT COMPLIANCE MANAGER By: _______________________________By signing, I acknowledge that I am the person Marilyn Marvin responsible for the monitoring and administration of Director, Property Management Department his contract, including ensuring all performance and reporting requirements Date: ______________________________Name: ____________________________ Title: _____________________________ Date: _____________________________ APPROVED AS TO FORM AND LEGALITY: By: ______________________________ Candace Pagliara Assistant City Attorney Date: _____________________________ ATTEST: By: ______________________________ Jannette S. Goodall City Secretary Date: _____________________________ Form 1295: 2025-1272963 Contract Authorization: M&C: 25-0465 Date: 5/20/2025 Exhibit “A” Aerial Location View Premises Outlined in red Official site of the City of Fort Worth, Texas CITY COUNCIL AGENDA Create New From This M&C DATE:5/20/2025 REFERENCE NO.:**M&C 25-0465 LOG NAME:21400 EAST VICKERY LEASE REVISED CODE:G TYPE:CONSENT PUBLIC HEARING:NO SUBJECT: (CD 9) Authorize the Execution of a Facilities Lease Agreement with Boykin Land Company, LLC for the Use of Approximately 25,190 Square Feet of Industrial and Warehouse Space Located at 400 East Vickery Boulevard, Fort Worth, Texas, 76104 for Storage for the Public Events Department During Phase Two of the Fort Worth Convention Center Renovation and Expansion Project with an Initial Term of Sixty (60) Months RECOMMENDATION: It is recommended that the City Council authorize the execution of a facilities lease agreement with Boykin Land Company, LLC for the use of approximately 25,190 square feet of industrial and warehouse space located at 400 East Vickery Boulevard, Fort Worth, Texas, 76104 for storage for the Public Events Department during Phase Two of the Fort Worth Convention Center Renovation and Expansion Project (City Project No. 102582) with an initial term of sixty (60) months. DISCUSSION: On March 11, 2025, through Mayor and Council Communication (M&C) 25-0238, the Fort Worth City Council authorized the lease of approximately 25,190 square feet of industrial and Warehouse Space located at 400 East Vickery Boulevard, Fort Worth, Texas, 76104. However, since M&C 25-0238 was approved and prior to the lease being executed, the owner of Crawford and Crawford, Inc., the company listed as Landlord under M&C 25-0238, decided, due to business reasons, to change the Landlord company to Boykin Land Company, also under his ownership. The lease agreement has been updated to reflect this change. Therefore, staff recommends that M&C 25-0238 be amended to reflect the updated Landlord entity. The lease of approximately 25,190 square feet of industrial and warehouse space will be used for the storage of equipment and banquet furniture for the Public Events Department during Phase Two of the Fort Worth Convention Center (FWCC) Renovation and Expansion Project. The FWCC will maintain business operations during the expansion project. As a result of negotiations between the City's Property Management Department, the Public Events Department, and the Landlord, the parties have agreed to a facilities lease agreement with the following terms: A primary lease term of sixty (60) months; A two-year option to purchase the building after December 1, 2026; Base rent to include common area fees and operating expenses. The base rent is as follows: Months Total Base Rent Monthly Base Rent 1-3 $37,248.00 $12,416.00 4-12 $198,369.00 $22,041.00 13-36 $579,360.00 $24,140.00 37-60 $629,760.00 $26,240.00 Page 1 of 2M&C Review 5/20/2025http://apps.cfwnet.org/council_packet/mc_review.asp?ID=33328&councildate=5/20/2025 Fund Department ID Account Project ID Program Activity Budget Year Reference # (Chartfield 2) Amount Fund Department ID Account Project ID Program Activity Budget Year Reference # (Chartfield 2) Amount The base rent reflects fair market value for comparable leases for industrial use. Funding is budgeted in the Certificate of Obligation 2023 Fund for the ARPA FWCC Expansion & Prj Mgmt Project, as appropriated. This property is located in Council District 9. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that funds are available in the current capital budget, as previously appropriated, in the Certificate of Obligation 2023 Fund for the ARPA FWCC Expansion & Prj Mgmt project to support the approval of the above recommendation and execution of the lease agreement. Prior to any expenditure being incurred, the Property Management Department has the responsibility to validate the availability of funds. TO FROM Submitted for City Manager's Office by:Valerie Washington (6199) Originating Department Head:Marilyn Marvin (7708) Additional Information Contact:Mark Brown (5197) ATTACHMENTS 21400 E VICKERY LEASE FUNDS AVAILABILITY.PDF (CFW Internal) 400 E VICKERY LEASE REVISED.pdf (CFW Internal) 400 East Vickery Lease FID table.pdf (CFW Internal) Form 1295 - Lease agreement for 400 East Vickery.pdf (CFW Internal) Page 2 of 2M&C Review 5/20/2025http://apps.cfwnet.org/council_packet/mc_review.asp?ID=33328&councildate=5/20/2025