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HomeMy WebLinkAboutContract 32736-A7CSC No. 32736-A7 SEVENTH AMENDMENT TO LEASE AGREEMENT THIS SEVENTH AMENDMENT TO LEASE AGREEMENT (this "Amendment") is made effective as of the 18th day of August , 2025 (the "Effective Date"), by and between the CITY OF FORT WORTH, a municipal corporation of the State of Texas (the "City" or "Landlord"), and MCIMETRO ACCESS TRANSMISSION SERVICES LLC., a Delaware limited liability company, d/b/a Verizon Access Transmission Services, f/k/a MCImetro Access Transmission Services Corp. ("Tenant"). WITNESSETH: WHEREAS, Fort Worth Telco Center Limited ("Original Landlord"), successor in interest to Landlord, and Tenant entered into that certain Standard Equipment Site Lease Agreement dated April 13, 2000, City Secretary Contract #47864 (the "Original Lease") as amended by: (i) that certain Commencement Date Agreement and Amendment to the Lease executed November 20, 2000, between Original Landlord and Tenant (the "First Amendment"); (ii) that certain Amendment Number Two to Lease Agreement executed November 29, 2000, between Original Landlord and Tenant (the "Second Amendment"); (iii) that certain Amendment to Lease Agreement executed December 1, 2005 between Landlord and Tenant (the "Third Amendment"); (iv) that certain Fourth Amendment to Lease Agreement dated effective June 1, 2010, between Landlord and Tenant (the "Fourth Amendment"); (v) that certain Fifth Amendment to Lease Agreement dated March 27, 2015 (the "Fifth Amendment"); (vi) that certain Sixth Amendment to Lease Agreement dated April 1, 2021 (the "Sixth Amendment", together with the Original Lease, First Amendment, Second Amendment, Third Amendment, Fourth Amendment, and Fifth Amendment collectively referred to herein as the "Lease"), for the lease of certain premises consisting of approximately 8,343 square feet of rentable area (the "Premises") in the building commonly known as the Zipper Building located at 1111 Monroe Street, Fort Worth, Texas (the 'Building"), as more particularly described in the Lease; WHEREAS, the Third Renewal Term (as such term is referred to in the Sixth Amendment) will expire at 11:59 p.m. CST on October 31, 2025; and WHEREAS, Tenant timely exercised its option to extend the Lease Term for the Fourth Renewal Term pursuant to Section 5 of the Sixth Amendment and as such renewal term is referred to in the Sixth Amendment; WHEREAS, Landlord and Tenant now desire to, among other things, amend the Lease to extend the Lease Term and to modify certain other terms and conditions set forth herein. NOW THEREFORE, in consideration of the foregoing and mutual promises and covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Landlord and Tenant agree as follows: 1. Recitals; Defined Terms. The above recitals are true and correct and are hereby incorporated by reference into this Amendment as if set forth in full. Unless specifically defined herein, capitalized terms used in this Amendment shall have the same meaning as set forth in the Lease. OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX 4899-5495-1753v.4 45774-42 2. Extension of Lease Term. Pursuant to Tenant's timely exercise of the first of its two options to renew the Lease under Section 5 of the Sixth Amendment, the Lease Term is hereby extended for a period of five (5) years, commencing on November 1, 2025, and expiring at 11:59 p.m. on October 31, 2030 (the "Fourth Renewal Term"). 3. Base Rental. During the Fourth Renewal Term, Base Rental for the Premises shall be in the amount of $12.59 per square foot per annum for an annual rental of One Hundred and Five Thousand Thirty -Eighty and 37/100 Dollars ($105,038.37), payable in equal monthly installments of Eight Thousand Seven Hundred Fifty -Three and 20/100 Dollars ($8,753.20). 4. Base Year. During the Fourth Renewal Term, for purposes of calculating Tenant's Proportionate Share of increases in Operating Expenses and Tax Payments, the "Base Year" means calendar year 2026. 5. Renewal Option. Tenant shall continue to have its second remaining option to extend the Lease Term for a period of five (5) years in accordance with the terms and conditions of Section 5 of the Sixth Amendment (such renewal term is referred to as the "Fifth Renewal Term" in the Sixth Amendment). 6. Insurance. Section 10 of the Original Lease is hereby deleted in its entirety and replaced with the following: "10. Insurance. Tenant, at its expense, at all times during the Lease Term and any other period of occupancy of the Premises by Tenant, shall provide and maintain with respect to the Premises Commercial General Liability insurance with limits of $2,000,000 per occurrence for bodily injury and property damage and $2,000,000 general aggregate including Landlord as an additional insured as their interest may appear under this Lease. Any insurance required to be maintained by Tenant may be provided through a blanket policy covering the Premises and other properties. Landlord, at its written request, shall be furnished with appropriate certificates of insurance evidencing that such insurance is in force and that Landlord (and any mortgagee designated by Landlord to Tenant in writing) is included as an additional insured as their interest may appear under this Lease. Upon receipt of notice from its insurer(s) Tenant shall use commercially reasonable efforts to provide Landlord with thirty (30) days prior written notice of cancellation any required coverage." 7. Counterparts. This Amendment may be executed in multiple counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument. This Amendment and all notices and other communications required or permitted under the Lease may be executed by electronic signature, each of which shall be considered as an original signature for all purposes and shall have the same force and effect as an original signature. For these purposes, "electronic signature" shall mean electronically scanned and transmitted versions (e.g., via pdf file) of an original signature, signatures electronically inserted and verified by software such as Adobe Sign, or faxed versions of an original signature. Landlord and Tenant agree that the delivery of an executed copy of this Amendment and all notices and other communications required or permitted under the Lease by facsimile or e-mail shall be legal and binding and shall have the same full force and effect as if an original executed copy of this Amendment had been delivered. A notice sent by legal counsel for a party shall have the same effect as if sent by the party on whose behalf such notice was sent. 8. Successors and Assigns. This Amendment shall apply to, inure to the benefit of, and be binding upon the parties hereto and upon their respective heirs, legal representatives, successors and permitted assigns, except as otherwise provided herein. 9. Entire Agreement. The Lease, as modified by this Amendment, constitutes the entire agreement between the parties with respect to the subject matter hereof, and contains all of the covenants and agreements of the parties with respect thereto. The parties each acknowledge that no representations, inducements, promises, or agreements, oral or written, have been made by the parties, or anyone acting on behalf of the parties, which are not contained herein, and any prior agreements, promises, negotiations or representations not expressly set forth in this Amendment are of no effect. This Amendment may not be altered, changed or amended except by an instrument in writing signed by the parties hereto. To the extent of any inconsistency between the Lease and this Amendment, the terms of this Amendment control. Effective as of the Effective Date, all references to the "Lease" shall refer to the Lease as amended by this Amendment. [Remainder of page intentionally left blank; Signature page follows.] IN WITNESS WHEREOF, Landlord and Tenant have executed this Amendment effective on the Effective Date. LANDLORD: CITY OF FORT WORTH .W44,11t. By: Valerie Washington (Aug 18,202510:16:36 CDT) Valerie Washington Assistant City Manager APPROVED BY: Marilyn Marvin Director, Property Management Department TENANT: MCIMETRO ACCESS TRANSMISSION SERVICES LLC, a Delaware limited liability company d/b/a Verizon Access Transmission Services By: Noah Julius (Aug 15, 202511:36:50 EDT) Name: Noah Julius Title: Senior Director — Global Real Estate 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. 'h ,-) Mark Br n (Aug 15, 202515:20:22 CDT) Mark Brown Lease Manager, Property Management Department APPROVED AS TO FORM AND LEGALITY: Cailiace ? aetlara Candace Ngli—(Aug 15,2025 6�:38'09CU) Candace Pagliara Assistant City Attorney d4440n� FORTo9d v Ao ATTEST:°° °=0 oP 00 � ��.�a,2 * ooe*�d a°an,in�xae44a Jannette S. Goodall City Secretary Contract Authorization: Form 1295: N/A M&C: 25-0701 OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX 8/13/25, 7:55 AM M&C Review Official site of the City of Fort Worth, Texas ACITY COUNCIL AGEND FORWoRTH Create New From This M&C DATE: 8/12/2025 REFERENCE **M&C 25- LOG NAME: 21 VERIZON 7TH LEASE NO.: 0701 AMENDMENT CODE: C TYPE: CONSENT PUBLIC NO HEARING: SUBJECT: (CD 9) Authorize the Execution of a Seventh Lease Amendment with MCIMetro Access Transmission Services LLC d/b/a Verizon Access Transmission Services to Amend the Insurance Provisions and Confirm the Exercise of a Fourth Term Renewal Under the Lease Agreement for Space within the Building Known as the Zipper Building Located at 275 West 13th Street, Fort Worth, Texas 76102 RECOMMENDATION: It is recommended that the City Council authorize the execution of a seventh lease amendment with MCIMetro Access Transmission Services LLC d/b/a Verizon Access Transmission Services to amend the insurance provisions and confirm the exercise of a fourth term renewal under the lease agreement for space within the building known as the Zipper Building, 275 West 13th Street, Fort Worth, Texas 76102. DISCUSSION: On May 10, 2005, on Mayor and Council Communication L-14052, the City of Fort Worth (City) purchased the property known as the Zipper Building located at 275 West 13th Street, also known as 1111 Monroe Street, Fort Worth, Texas 76102 and, upon such property purchase, acquired a Standard Equipment Site Lease Agreement between MCIMetro Access Transmission Services LLC d/b/a Verizon Access Transmission Services (Verizon) and Fort Worth TelCo Center Limited, as twice amended, and filed as City Secretary Contract No. 47864 (Original Lease). The Original Lease was executed on April 13, 2000 and provided Verizon with approximately 26,646 square feet of office space on the first floor of the Zipper Building to use as their telecommunication operations for a ten (10) year initial term and three (3), five-year term renewal options. On December 1, 2005, the Original Lease was amended by the City and Verizon to comply with the City's municipal guidelines and was filed as City Secretary Contract No. 32736 (Current Lease). On June 1, 2010, the Current Lease was amended to reduce the office space to approximately 8,343 square feet and to allow Verizon to exercise its first term renewal option. On March 27, 2015, the Current Lease was amended to adjust the term renewal option notification language and to allow Verizon to exercise its second term renewal option. On April 1, 2021, the Current Lease was amended to add two (2) additional, five-year term renewal options and to allow Verizon to exercise its third term renewal option. The third term renewal will expire on October 31, 2025. The Property Management Department and Verizon desire to amend the Current Lease to adjust the insurance language and to allow Verizon to exercise its fourth term renewal option. The fourth term renewal will commence on November 1, 2025 and expire on October 31, 2030. During the fourth term renewal, the rent will be $12.59 per square foot per annum for an annual rent of $105,038.37, payable in equal monthly installments of $8,753.20. Rent during any future term renewal will be determined at the time of the renewal and in the manner set forth in the Current Lease. This property is located in COUNCIL DISTRICT 9. apps.cfwnet.org/council_packet/mc_review.asp? I D=33561 &cou ncildate=8/12/2025 1 /2 8/13/25, 7:55 AM M&C Review FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that upon approval of the above recommendation and execution of the seventh amendment to the lease, funds will be deposited into the General Fund. The Property Management Department (and Financial Management Services) is responsible for the collection and deposit of funds due to the City. TO Fund 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 Manager's Office by_ Valerie Washington (6199) Originating Department Head: Marilyn Marvin (7708) Additional Information Contact: Marilyn Schoening (7581) Mark Brown (5197) ATTACHMENTS FID Table for Verizon 7th Amendment.xlsx (CFW Internal) M and C map Verizon.pdf (CFW Internal) apps.cfwnet.org/council_packet/mc_review.asp?ID=33561 &councildate=8/12/2025 2/2