HomeMy WebLinkAboutContract 48209-CD1 (2)CSC No. 48209-CD1
CONSENT TO LEASEHOLD DEED OF TRUST
FORT WORTH SPINKS AIRPORT
LEASE AGREEMENTS
LEASE SITE W3
This CONSENT TO L E A S E H O L D DEED OF TRUST ("Agreement") is made and
entered into by and between the CITY OF FORT WORTH ( "Lessor"), a home rule
municipal corporation organized under the laws of the State of Texas; AIR CENTER
HELICOPTERS, INC. ("Lessee"), a Delaware corporation, and UMB Bank, N.A.
("Lender"), a national banking association.
The following introductory provisions are true and correct and form the basis of this Consent:
A. Lessor and Lessee have entered into a Ground Lease Agreement identified as City
Secretary Contract No. 48209 (the "Lease") for the space known as lease site W3 ("Leased
Premises") at Fort Worth Spinks Airport ("Airport").
B. Lessee and the Lender desire Lessor to consent to the execution by Lessee of the Deed of
Trust on the Leased Premises in favor of the Lender.
NOW, THEREFORE, Lessor, Lessee and the Lender hereby agree as follows:
L The statements set forth in the recitals above are true and correct and form the basis upon
which Lessor, Lessee and the Lender have entered into this Agreement. The Lease will
be a public document on file in Lessor's City Secretary's Office and is incorporated herein
by reference for all purposes.
2. Lessor hereby consents to the execution and delivery by Lessee to the Lender of the Deed
of Trust. Lessor does not adopt, ratify or approve of any of the particular provisions of the
Deed of Trust and does not grant any right, privilege or use to Lessee, Lender, or any
successor in interest pursuant to the Deed of Trust that is different from or more extensive
than any right, privilege or use granted to Lessee under the Lease. Notwithstanding
anything contrary in the Deed of Trust, Lessee and the Lender acknowledge, understand
and agree that Lessee and the Lender do not have any right to convey any interests
in the Leased Premises greater than those granted specifically by the Lease. Lessee and
the Lender further acknowledge, understand and agree that Lessor retains the mineral interest
and the right to develop such interest within the Leased Premises; provided, however, that
Lessor expressly waives all rights to utilize the surface of the Leased Premises in the
exploration, production, or transportation of any oil, gas, or minerals. Nothing herein
contained shall ever be construed to prevent the Lessor, or its successors or assigns, from
developing or producing oil, gas and other minerals in and under the Leased Premises by
pooling or by directional drilling under the Leased Premises from well sites not located within
the boundaries of the Leased Premises and only at a depth of no less than 500 feet below the
surface of the Leased Premises.
AIR CENTER HELICOPTERS, INC.
Deed of Trust Upon Lien hold
In favor of UMB BANK, N.A.
Page 1 of 8
In the event of any conflict between the Deed of Trust and the Lease, the Lease shall
control in all respects as to Lessor and as to Lessee's and the Lender's (if Lender assumes
the Lessee's interest under the Lease) obligations to Lessor established by the Lease
and/or this Agreement. In the event of any conflict between the Deed of Trust and this
Agreement, this Agreement shall control. In the event of any conflict between this
Agreement and the Lease, the Lease shall control.
3. In the event that Lessor is required by the Lease to provide any kind of written notice
to Lessee with regard to the Leased Premises, including notice of breach or default by
Lessee, Lessor shall also provide a copy of such written notice to the Lender. Lessor
agrees that (i) the Lender may perform any of the obligations or requirements imposed
on Lessee by the Lease in order to avoid a breach or default under the Lease by Lessee
and (ii) Lessor will accept the Lender's performance the same as ifLessee had performed
such obligations or requirements.
4. Lessor agrees and covenants that it will not exercise any rights it may have under the
Lease to cancel or terminate the Lease or to force surrender of all or part of the Leased
Premises unless it first has provided the Lender with written notice of its intent to
exercise such any such right. The Lender shall have ten (10) calendar days from the
date it receives such notice to cure any monetary default under the Lease and thirty
(30) calendar days from the date it receives such notice to cure any other default under
the Lease to Lessor's reasonable satisfaction in order to avoid such cancellation,
termination or surrender; provided, however; that if the Lender, in good faith and after
diligent and continuous efforts to remedy any non -monetary default under the Lease,
cannot cure such default within thirty (30) calendar days, it shall notify Lessor in
writing and Lessor and the Lender shall negotiate in good faith a reasonable amount of
additional time to cure such default.
5. Lessee agrees that it will not request or consent to any future modifications, amendments
or assignments of the Lease without first receiving the Lender's written consent thereto
and providing a copy of such written consent to Lessor. Lessee understands and agrees
that any such consent granted by Lessor without Lender's advance written consent shall
be void and specifically releases, holds harmless and agrees to indemnify Lessor for
any damages that may arise as a result of any such consent.
6. As long as such does not conflict with Lessor's rights under the Lease, Lessor consents
to the exercise by the Lender of any and all rights and remedies permitted under the
Deed of Trust (including judicial and/or non judicial foreclosure on the Leased
Premises), and to the exercise of such additional legal and equitable rights and remedies
as may be available to Lender, if an Event of Default occurs under the Deed of Trust.
In the event that Lender undertakes to enforce. its rights to any collateral granted by
the Deed of Trust on account of default by Lessee under the Deed of Trust, Lessor will
cooperate with the Lender in its efforts to assemble and/or remove any personal property
of Lessee on the Premises. The Lender hereby agrees to repair any damages at or to
the Airport, including the Leased Premises, caused by or incident to such removal.
7. As a condition precedent to the effectiveness of this Agreement, Lessee agrees and
AIR CENTER HELICOPTERS, INC.
Deed of Trust Upon Lien hold
in favor of UMB BANK, N.A.
Page 2 of 8
covenants that it will endorse all insurance policies required by the Lease to name both
Lessor and the Lender as additional insureds and to cover all public risks related to the
leasing, use, occupancy, maintenance, existence or location of the Leased Premises.
Notwithstanding anything to the contrary in the Deed of Trust, the Lender hereby agrees
and covenants that any and all proceeds payable under the terms of such insurance policies
shall first be applied to cover the replacement of all facilities and improvements on the
Leased Premises and to satisfy fully the terms and conditions of the Lease. Payment of
such proceeds shall apply secondarily to secure any of Lessee's indebtedness to the
Lender.
8. Subject to Sections 4 and 6 of this Agreement, Lessor may take all action available
to it under the Lease, at law or in equity in order to protect its interests, including, but
not limited to, cancellation of Lessee's interest as provided by the Lease and in accordance
with this Agreement.
9. The Lender agrees that it promptly will notify Lessor in writing when the Lender has
released its rights under the Deed of Trust. This Agreement will automatically terminate
on the earlier of (i) the. date as of which the Lender releases such rights or (ii) the date
upon which the Lease expire or are terminated.
10. If the Lender forecloses on the Leased Premises as a result of exercising its rights under
the Deed of Trust, the Lender may become the owner of all of Lessee's rights under the
Lease, without Lessor's further action or consent. However, if the Lender desires to sell
or otherwise transfer its leasehold interest in the Leased Premises to a third party (either at
or after foreclosure), the Lender must obtain the Lessor's written consent to and approval
of the purchaser. Such consent and approval will not be unreasonably withheld,
conditioned or delayed. Nothing in this Agreement is intended to prohibit the Lender from
assigning the liens and security interests created by the Deed of Trust to another financial
institution with Lessor's prior written consent, which such consent will not be
unreasonably withheld, conditioned, or delayed.
11. Notices to the Lender required pursuant to the provisions of this Agreement shall be
conclusively determined to have been delivered when (i) hand -delivered to the Lender, its
agents, employees, servants or representatives, or (ii) deposited in the United States
Mail, certified, return receipt requested, addressed as follows:
UM[B BANK, N.A.
5950 Berkshire Lane, Suite 1600
Dallas, TX 75225
Attn: Douglas Kang
12. The parties hereto understand and agree that upon expiration or termination of the Lease,
all permanent structures, improvements and fixtures on the Leased Premises, and any
items permanently attached to any such structure, fixture or improvement, will become the
sole property of Lessor, free and clear of all liens, including the Deed of Trust.
Improvements of a non -permanent nature, all trade fixtures, tools, machinery, equipment,
materials, supplies owned by Lessee, furnishings and other non -permanent items ("Non -
AIR CENTER HELICOPTERS, INC.
Deed of Trust Upon Lien hold
In favor of UMB BANK, N.A.
Page 3 of 8
Permanent Collateral') placed on the Leased Premises by Lessee may specifically be
removed from the Leased Premises in accordance with the Lease. In the event that the
Lease expire or are terminated, Lessee and the Lender covenant and agree that nothing
herein shall obligate Lessor to assume in any way Lessee's indebtedness to the Lender.
Notwithstanding the foregoing to the contrary, if at the time of the expiration or
termination of the Lease there is a default under the Deed of Trust then Lender may
continue its security interest on any Non -Permanent Collateral that remains the property
of Lessee.
13. Estouuel.
a. The document referred to above as comprising of the Lease is the only document
which constitute the Lease, and the Lease is in full force and effect and has not been
modified, changed, altered or amended in any respect.
b. The Lease is the only agreement between the City and Lessee relating to the Lease
at Fort Worth Spinks Airport and, together with the minimum standards and other
general regulations that may apply to the Lessee under the Lease, contain the entire
agreement and understanding of the City and Lessee with respect thereto. Lessee
is the current holder of the leasehold interest in the premises under the Lease.
C. To the best knowledge of the City, no monetary or non -monetary default by the
City presently exists under the Lease and no state of facts exist which with the
passage of time or giving of notice, or both, would constitute a default by the City
under the Lease.
d. The City has not taken, and does not currently anticipate taking any action to, or
that would, terminate the Lease.
e. Pursuant to the Lease, the Initial Term of the Lease expires on August 31, 2046 at
11:59 PM, with a right to extend the term of the Lease for two (2) additional
successive terms of five (5) years each.
14. The provisions of this Agreement shall be self -operative and effective without the
execution of any further instruments on the part of any party hereto.
15. Lessor understands and agrees that this Agreement is for the benefit of the Lender, that the
Lender relied upon this Consent to Leasehold Deed of Trust and Estoppel in making its
decision to make the Loan to Lessee and that the Lender would not make the Loan absent
Lessor's execution and delivery of this Agreement.
16. This Agreement may not be withdrawn, amended or modified except by a written
agreement executed by the parties hereto and approved by Lessor's City Council. Lessee
and the Lender covenant and agree that they will not amend the Deed of Trust, or assign
any rights and/or obligations thereunder, without the prior written consent of Lessor;
provided, however, Lender may assign the Deed of Trust and the obligations secured
thereunder to an affiliate of Lender without Lessor's consent but Lender must notify
Lessor of such assignment.
AIR CENTER HELICOPTERS, INC.
Deed of Trust Upon Lien hold
in favor of UMB BANK, N.A.
Page 4 of 8
17. This Agreement shall be construed in accordance with the laws of the State of Texas.
Venue for any action arising under the provisions of this Agreement shall lie in state
courts located in Tarrant County, Texas or in the United States District Court for the
Northern District of Texas, Fort Worth Division.
18. This written instrument, including any documents attached hereto and/or incorporated
herein by reference, contains the entire understanding and agreement between Lessor,
Lessee and the Lender as to the matters contained herein. Any prior or contemporaneous
oral or written agreement concerning such matters is hereby declared null and void to the
extent in conflict with this Agreement.
19. The person signing this Agreement hereby warrants that he/she has the legal authority to
execute this Agreement on behalf of the respective parry, and that such binding authority
has been granted by proper order, resolution, ordinance or other authorization of the entity.
The other party is fully entitled to rely on this warranty and representation in entering into
this Agreement.
[Signature Pages Follow]
AIR CENTER HELICOPTERS, INC.
Deed of Trust Upon Lien hold
In favor of UMB BANK, N.A.
Page 5 of 8
IN WITNESS WHEREOF, the parties hereto have executed this Agreement in multiples
on this the 28th day of August . 2025.
CITY
YOO��FFORT WORTH:
4 "IL,
V �.erie Washington Aug28,202515:06:45 CDT)
By:
Valerie Washington
Assistant City Manager
Date: 08/28/2025
By:
Roger M. Venables
Aviation Systems Director
BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on
this day personally appeared Valerie Washington, known to me to be the person whose name is
subscribed to the foregoing instrument, and acknowledged to me that the same was the act of the
City of Fort Worth and that he executed the same as the act of the City of Fort Worth for the
purposes and consideration therein expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this 28th day of
August _ 2025.
Ar ela D. Chris
Angela d)$hrisp (Aug 28, 2025 15:12:27 CDT)
o�Pav aye ANGELA D. CHRSP
Notary Public
STATE OF TEXAS
y®P Notary I.D. 134812443
FOF� My Comm. Exp Mar. 18, 2028
APPROVED AS TO FORM
AND LEGALITY:
Care- PwGi4r&
By: Caid ace Pagh a ra(Aug 28, 2022 i$2b 04 CDT)
JJ Candace Pagliara
Assistant City Attorney
M&C: 25-0797
Date Approved: 08/26/2025
Form 1295: 2025-1338548
AIR CENTER HELICOPTERS, INC.
Deed of Trust Upon Lien hold
in favor of UMB BANK, N.A.
Page 6 of 8
Notary Public in and for the State of Texas
ATTEST:
By.
Janette S. Goodall Kc
City Secretary
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.
Barbara Goodwin
Real Property Manager
LESSEE:
AIR CENTER HELICOPTERS, INC.
J jesa en
Ex tive Vice President, Treasurer
Date: 8/27/2025
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this
day personally appeared James Jensen known to me to be the person whose name is
subscribed to the foregoing instrument, and acknowledged to me that the same was the act
of AIR CENTER HELICOPTERS, INC. and that he executed the same as the act
of AIR CENTER HELICOPTERS, INC. for the purposes and consideration
therein expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this �� day of"%'-"� Cw
.2025.
CAROLYN NICOLE NEWMAN
My Notary ID # 10637368
�= Notary Pu lic in and for the State of Texas
Expires May 8, 2029
AIR CENTER HELICOPTERS, INC.
Deed of Trust Upon Lien hold
In favor of UMB BANK, N.A.
Page 7 of 8
LENDER:
UMB BANK, N.A.
By: ` 0
Do4l ang v
Vice President
Date: O'�o�g�aOol
STATE OF TEXAS §
COUNTY OF D„I(4r §
ATTEST:
By: —�
T1-
I0.Y f %'etvt
BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this
day personally appeared Douglas Kang known to me to be the person whose name is subscribed
to the foregoing instrument, and acknowledged to me that the same was the act of UMB BANK,
N.A. and that she executed the same as the act of UMB BANK, N.A. for the purposes and
consideration therein expressed and in the capacity therein stated.
//��
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this
Aueul � 2025.
J '
AIR CENTER HELICOPTERS, INC.
Deed of Trust Upon Lien hold
in favor of UMB BANK, N.A.
Page 8 of 8
day of
Notary Public in and for the State of Texas
„
Mark MdGrizie
Notary Public, State of Texas
*
My Comm. Exp. 04/04/2027
+'
Notary ID 130144244
M&C Review
Page 1 of 2
CITY COUNCIL AGENDA
Create New From This M&C
DATE: 8/26/2025 REFERENCE **M&C 25-
NO.: 0797
LOG NAME:
CODE: C TYPE: CONSENT PUBLIC
HEARING:
Official site of the City of Fort Worth, Texas
FORTWORTH
7
55FWS AIR CENTER LEASE
20E CONSENT TO LSEHLD
DEED OF TRUST
NO
SUBJECT: (CD 8) Authorize Execution of a Consent to Leasehold Deed of Trust with Air Center
Helicopters, Inc. and UMB Bank, N.A. to Enable Air Center Helicopters, Inc. to Obtain
Financing Using Lease Site 20E as Collateral to Expand Aeronautical -Related Business
Activity at Fort Worth Spinks Airport
RECOMMENDATION:
It is recommended that the City Council authorize execution of a consent to leasehold deed of trust
with Air Center Helicopters, Inc. and UMB Bank, N.A. to enable Air Center Helicopters, Inc. to obtain
financing using Lease Site 20E as collateral to expand aeronautical -related business activity at Fort
Worth Spinks Airport.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to authorize execution of a consent
to leasehold deed of trust with Air Center Helicopters, Inc. (Air Center) and UMB Bank, N.A. (UMB
Bank) to enable Air Center to obtain financing using Lease Site 20E as collateral to expand
aeronautical -related business activity at Fort Worth Spinks Airport.
On or about April 19, 2022, by Mayor and Council Communication (M&C 22-0283), City Council
approved City Secretary Contract No. (CSC) 48506-CA1, a Consent to Assignment to transfer the
lease agreement from Dumont Group Properties VI, LLC to Air Center for a ground lease agreement
for Lease Site 20E, at Fort Worth Spinks Airport. Lease Site 20E consists of 158,735 square feet of
ground space, including a 51,300 square foot hangar. CSC 48506-CA1 expires on December 31,
2056 with a hangar rate to be applied on January 1, 2049. The hangar rate will be equal to the then
fair market value as determined by Lessor's market analysis and will expire with the ground rate on
December 31, 2056. The current annual revenue is $49,207.85, based on the current ground rate of
$0.31 per square foot, payable in monthly installments of $4,100.65.
On or about July 14, 2025, UMB Bank requested a deed of trust on its leasehold interest. The
consent to leasehold deed of trust will grant Air Center's lender, UMB Bank the right, subject to the
previous lien, to operate as Lessee or secure another tenant in place of Air Center, if previously
approved by the City Council, in the event Air Center defaults on its loan or its lease with the City of
Fort Worth. The lease agreement prohibits Air Center from making any assignment of the lease or
causing a lien to be made on improvements constructed on the leased premises without City Council
approval. This type of transaction is routine for airport tenants and staff has no objection to Air
Center's request.
Fort Worth Spinks Airport is located in COUNCIL DISTRICT 8.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that approval of this recommendation will have no material effect on
City funds.
TO
Fund Department I Account I Project I Program I Activity , Budget I Reference # I Amount
http://apps.cfwnet.org/council packet/mc review. asp?ID=3 3 6 5 7&councildate= 8/2 6/2025 8/27/2025
M&C Review Page 2 of 2
1 1 ID I ID Year (Chartfield 2)
FROM
Fund I Department Account Project Program Activity Budget Reference # I Amount
ID ID Year (Chartfield 2)
Submitted for Citv Manaaer's Office bv: Valerie Washington (6199)
Oriainatina Deaartment Head: Roger Venables (5402)
Additional Information Contact: Ricardo Barcelo (5403)
ATTACHMENTS
2025-07-17 ACHI Form 1295 1.odf (CFW Internal)
Location Map Lease Ste 20E.pdf (CFW Internal)
http://apps.cfwnet.org/council packet/mc review. asp?ID=33657&councildate=8/26/2025 8/27/2025
CSC No. 48506-CAl
CONSENT TO ASSIGNMENT OF
CITY SECRETARY CONTRACT NO. 48506
UNIMPROVED GROUND LEASE AGREEMENTS
FORT WORTH SPINKS AIRPORT
LEASE SITE 20E
This CONSENT TO ASSIGNMENT OF CITY SECRETARY CONTRACT NO.
48506, ("Consent") is made and entered into by and between the CITY OF FORT WORTH,
TEXAS ("Lessor"), a Texas home rule municipal corporation organized under the laws of the
State of 'Texas, acting by and through Dana Burghdoff, its duly authorized Assistant City
Manager; DUMONT GROUP PROPERTIES VI, LLC ("Lessee"), a Texas limited
liability company, acting by and through DANIEL S. PIRAINO, its duly authorized
Manager; and AIR CENTER HELICOPTERS, INC. ("Assignee"), a Delaware corporation,
acting by and through JOHN L. BEAN its Executive Vice President.
RECITALS:
The following introductory provisions are true and correct and form the basis of this
Consent:
A. On December 13, 2016 (M&C C-28043) City Council authorized Lessor to enter into a certain
Hangar and Ground Lease Agreement (CSC No. 48506) with Dumont Group Properties VI, LLC,
dated December 23, 2016, (the "Lease"), for the lease and use of real property known as Lease Site
20E and any improvements and facilities thereon ("Leased Premises") at Fort Worth Spinks Airport
("Airport");
B. On June 28, 2017, Lessor, Lessee, and Wilmington Savings Fund Society, FSB ("First
Lender") entered into a Consent to Leasehold Deed of Trust which was incorrectly labled with CSC
No. 35803-CA2, a contract that had been terminated months prior, instead of CSC 48506;
C. On June 9, 2020, Lessor, Lessee, and Groupo Piraino, LLC and Deak Companies, LLC, both
Delaware companies ("Second Lenders") entered into CSC 48506-CD IEC 1 which was the second
consent agreement entered into by the Lessor related to this property;
D. In the latter part of 2021 Lessor was approached by Lessee requesting a third consent to
leasehold deed of trust which was intended, according to the Lessee, to allow for the prospective sale
of the leasehold interest to a future tenant in which, on April 7, 2022 Lessor, Lessee, and Cortland
Credit Lending Corporation ("Third Lender") entered into CSC 48506-CD2, the third Consent to
Leasehold Deed of Trust;
E. On March 11, 2022, Lessee notified Staff of a proposed sale of its leasehold interest in Lease
to Assignee, pending City Council approval; and
Consent to Assignment of CSC No. 48506
by Dumont Group Properties VI, LLC
to: Air Center Helicopters, Inc. OFFICIAL RECORD
Page l of CITY SECRETARY
FT. WORTH, TX
F. Lessee now wishes to assign all of Lessee's remaining right, title and interest in the Leased
Premises and Lease to Assignee; Assignee wishes to accept such assignment; and Lessor is willing
to consent to such assignment, all on the terms and conditions set forth in this Consent.
AGREEMENT:
NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of
which are hereby acknowledged, Lessor, Lessee, and Assignee agree as follows:
1. Lessor hereby consents to an assignment by Lessee to Assignee of all of title and interest
in the Leased Premises granted to Lessee by the Lease (the "Assignment"), effective as of the
date that Lessor, Lessee and Assignee have executed this Consent ("Effective Date"). The Lease
is incorporated herein by reference for all purposes. The Assignment, dated as of the Effective
Date, is a public document on file in Lessor's City Secretary's Office and Aviation Department
and is incorporated herein by reference for all purposes.
2. Lessor does not adopt, ratify or approve any of the particular provisions of the Assignment
and does not grant any remaining right, privilege or use to Assignee which is different from or
snore extensive than any right, privilege or use granted to Lessee by the Lease. In the event of any
conflict between the Lease and the Assignment, the Lease shall control. In the event of any conflict
between this Consent and the Assignment, this Consent shall control,
3. Lessor consents to the Assignment expressly upon the promise and covenant by Assignee,
and Assignee hereby promises and covenants to Lessor, that as of the Effective Date Assignee will
faithfully perform, as an independent contractor, all duties and obligations of Lessee set forth in
the Lease. Lessor acknowledges Lessee has no duties and obligations under the Lease after the
Effective Date.
4. Lessee understands and agrees that Lessee will be liable to Lessor for (i) any duty or
obligation of Lessee that Lessee was required by the Lease to undertake or perform prior to the
Effective Date and (ii) any damages (subject to the terms of the Lease), including, but not limited
to, property loss, property damage and/or personal injury of any kind, including death, to the extent
caused by Lessee, its officers, agents, servants, employees or subcontractors prior to the Effective
Date,
S. Assignee understands and agrees that Assignee will be liable to Lessor for (i) any duty or
obligation of Lessee that Lessee is required by the Lease to undertake or perform on or after the
Effective Date and (ii) for any damages (subject to the terms of the Lease), Including, but not
limited to, property loss, property damage and/or personal injury of any kind, including death, to
the extent caused by Assignee, its officers, agents, servants, employees or subcontractors on or
after the Effective Date.
6. The person signing this Consent hereby warrants that he/she has the legal authority to
execute this Consent on behalf of the respective party, and that such binding authority has been
Consent to Assignme€u of CSC No. 48506
by Dumont Group Properties V[, LLC
to: Air Center ltelicopters, Inc.
Page 2 of 8
granted by proper order, resolution, ordinance or other authorization of the entity. The other party
is fully entitled to rely on this warranty and representation in entering into this Consent.
7. This Consent may be executed in any number of counterparts, all of which shall constitute
the same instrument.
8. All terms in this Consent that are capitalized but not defined shall have the meanings
assigned to them in the Lease.
[SIGNATURES APPEAR ON THE FOLLOWING PAGES]
Consent to Assignment of CSC No. 48506
by Ihnnont GTOUP Properties Vl, LLC
to: Air Center Helicopters, Inc.
Page 3 of 8
IN WITNESS WHEREOF, the parties hereto have executed this Agreement in multiples on
this the day of , 2022.
CITY OF FORT WORTH:
Ageq &vGIh*G
By: Dana Bughdoff (Ap`ti 19,2022'16:10CDT)
Dana Burghdoff
Assistant City Manager
Date: Apr 19, 2022
M&C: 22-0283
M&C Approved: 04/12/2022
Form 1295:2022-860404
STATE OF TEXAS §
COUNTY OF TARRANT §
APPROVED AS TO FORM AND LEGALITY:
By:
Thomas Royce Hansen, Assistant City Attorney
ATTEST: Tgvrvre� fe S. Goodall
By: Jan nette S. Goodall (Apr 20, 202212:20 CDT)
.Iannette S. Goodall, City Secretary
A
p� �FORr°�o��
pro
o d
dv0 o=�
° ° � o°
o lc�
BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on
this day personally appeared Dana Burghdoff, known to me to be the person whose name is
subscribed to the foregoing instrument, and acknowledged to me that the salve was the act of the City
of Fort Worth and that lie executed the salve as the act of the City of Fort Worth for the purposes
and consideration therein expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this day
2022. Apr 20, 2022
Al
Selena Ala (Apr 20, 202212:10 CDT)
o�pnr aye' SELENA ALA Notary Public In and for the State of Texas
Notary Public
28
* • STATE OF TEXAS
'��" MyCoomm E°P.'Ma231, 2024 [SIGNATURES CONTINUE ON THE FOLLOWING PAGE]
---------------
Consent to Assignment of CSC No. 48506
by Dumont Group Properties V1, LLC
to: Air Center I lei icopters, Inc.
Page 4 of 8
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
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.
_ .cll1
Barbar Goodwin
Real Proverty Manager
Title
[SIGNATURES CONTINUE ON THE FOLLOWING PAGE]
Consent to Assignment of CSC No. 48506
by Dumont Group Properties VI, LLC
to: Air Center Helicopters, Inc.
Page 5 of 8
OFFICIAL RECORD
Is] kv&-1 XN V =11 kl:y1
FT. WORTH, TX
LESSEE:
DUMON UP R01VERTIES VI, LLC.
By:
EL S. ARAINO
Date: 4,-,/
/ /
STATE OF T-E-X-A-S §
COUNTY OF' > Q-IP_ §
BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas,
on this day personally appeared DANIEL S. PIRAINO known to me to be the person
whose name is subscribed to the foregoing instrument, and acknowledged to me that the
same was the act of DUMONT GROUP PROPERTIES VI, LLC, and that he executed
the same as the of DUMONT GROUP PROPERTIES VI, LLC, for the purposes and
consideration therein expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this ILI-�h day
2022.
MICHELLE N. FRIEDMAN
NOTARY PUBLIC
STATE OF DELAWARE
My Commission Ekes April 1, 2024
1n /I1,rj 00 c Q(
otary Public m and for the State o 14,
[SIGNATURES CONTINUE ON THE FOLLOWING PAGE]
Consent to Assignment of CSC No. 48506
by Dumont Group Properties V1, LLC
to: Air Center Helicopters, Inc.
Page 6 of 8
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
ASSIGNEE:
AIR CENTER HELICOPTERS, INC.
By:
JO L BEAN
Date: `t / 13 % 20 Z 2
STATE OF TEX S
COUNTY OF c�liyl oI�YI
BEFORE ME, the undersigned authority, a Notary Public in and for the State of
Texas, on this day personally appeared JOHN L. BEAN known to me to be the person whose
name is subscribed to the foregoing instrument, and acknowledged to me that the same was
the act of AIR CENTER HELICOPTERS, INC., and that he executed the same as the of
AIR CENTER HELICOPTERS, INC., for the purposes and consideration therein
expressed and in the capacity therein stated.
1. '�)�
GIV WN UNDER MY HAND AND SEAL OF OFFICE this day
1 , 2022.
�! Jennifer Dawn Bryant
My Commission
Expres Notary Pu 'lic in and f� • the State of Texas
y 0012012022
�y�OfrP ID No. 128924057
Consent to Assignment of CSC No. 48506
by Dumont Group Properties VI, LLC
to: Air Center Ifelicopters, Inc.
Page 7 of S
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
DocuSign Envelope ID: 910€3A4A2-B75E-4175-A72E-B5E4E949B516
VERIFICATION OF SIGNATURE AUTHORITY
DUMONT GROUP PROPERTIES VI, LCC
2000 BRETT ROAD
NEW CASTLE, DE 19720
Execution of this Signature Verification Form ("Form") hereby certifies that the following
individuals and/or positions have the authority to legally bind Operator and to execute any agreement,
amendment or change order on behalf of Operator. Such binding authority has been granted by proper order,
resolution, ordinance or other authorization of Operator. City is fully entitled to rely on the warranty and
representation set forth in this Form in entering into any agreement or amendment with Operator. Operator
will submit an updated Form within ten (10) business days if there are any changes to the signatory
authority. City is entitled to rely on any current executed Form until it receives a revised Form that has been
properly executed by Operator.
Name: Daniel S. Piraino
Po 'jjg,V,@�,�O and Manger
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S�igriatui e BZ°°aa..
Name: Thomas Hugh
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Signa ure
3. Name: Joseph A. Martin
Position: Chief Business Officer
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Signature of Fr,esident f CEO
Manager
Other Title:
Date: 4/13/2022
CITY COUNCIL ,AGENDA
Create New From This M&C
DATE: 4112I2022 REFERENCE **M&C 22- LOG 55FWS CONSENTASSIGNMENT GRIND
NO.: 0283 NAME: LEASE 20E, AIR CENTER
CODE: C TYPE: CONSENT PUBLIC NO
HEARING:
SUBJECT. (CD 6) Authorize Execution of a Consent to Assignment of City Secretary Contract 48506,
a Ground Lease Agreement for Lease Site 20E by Dumont Group Properties VI, LLC
to Air Center Helicopters, Inc. at Fort Worth Spinks Airport
RECOMMENDATION:
It is recommended that the City Council authorize execution of a consent to assignment of City
Secretary Contract 48506, a ground lease agreement for lease site 20E by Dumont Group Properties
VI, LLC to Air Center Helicopters, Inc. at Fort Worth Spinks Airport.
DISCUSSION:
On December 13, 2016, through Mayor and Council Communication (M&C) C-28043, City Council
authorized Lessor to execute an unimproved ground lease agreement under City Secretary (CSC)
48506 with Dumont Group Properties VI, LLC (Dumont), dated December 23, 2016, for lease and use
of real property known as lease site 20E and any improvements and facilities thereon, consisting of
158,735 square feet of ground space and a 51,300 square foot hangar (Lease Premises) at Fort Worth
Spinks Airport (Airport). There were no mandatory improvements required.
On March 24, 2020, through Mayor and Council Communication (M&C) 20-0202, City Council
authorized Lessor to execute a Consent to Leasehold Deed of Trust with Dumont in favor of Group
Piraino, LLC and Doak Companies, LLC to refinance a business loan to facilitate development at lease
site 20E. On February 22, 2022, through Mayor and Council Communication (M&C) 22-0124, City
Council authorized Lessor to execute a Consent to Leasehold Deed of Trust with Dumont in favor of
Cortland Credit Lending Corporation to obtain an additional business loan, using as collateral,
improvements on lease site 20E.
Dumont recently notified the Aviation Department of a request for a consent to assignment of the lease
to Air Center Helicopters, Inc. (Air Center) due to a pending sale of its leasehold interest to Air Center.
The lease will expire on December 31, 2056, with no options to renew. On January 1, 2049, a hangar
rate will be added to the lease agreement to be included with the ground rate. The hangar rate will be
determined in a uniform non-discriminatory manner in accordance with all laws, rules and regulations
applicable to the Airport.
Annual revenue from the lease is approximately $46,807.81 payable in monthly installments of
$3,900.65. Rental rates shall be subject to an increase on October 1 st of any given year, based on
the upward percentage change in the Consumer Price Index for the Dallas -Fort Worth Metropolitan
area. At no time will the adjusted rate exceed the then current rate published in the Schedule of Rates
and Charges. Five-year rate adjustments are applied to the ground rate with the next scheduled
adjustment on October 1, 2022 and every fifth year thereafter.
Fort Worth Spinks Airport is located in COUNCIL DISTRICT 6
FISCAL INFORMATIONICERTIFiCATION:
The Director of Finance certifies that upon approval of the above recommendation and execution of
the lease, funds will be deposited into the Municipal Airport Fund. The Aviation Department (and
Financial Management Services) is responsible for the collection and deposit of funds due to the City.
TO
Fund Department I Account Project Program Activity I Budget Reference # Amount
ID ID 1 1 1 Year I (Chartfield 2)
FROM
Fund I Department Account I Project I Program I Activity Budget $ Reference # Amount
Ill ID Year q (Charttield 2)
Submitted for Citv Manager's Office bv: Dana Burghdoff (8018)
Originating Department Head: Roger Venables (5402)
Additional Information Contact: Ricardo Barcelo (5403)
Official site of Lhe City of kxl WorUi, Tc,as
Fogy, rr r"
ATTACHMENTS
Air Center 1295 Form (ACHI executed),�(d (CFW Internal)
Dumont 1295.pdf (CFW Internal)
FID TABLE.xlsx (CFW Internal)
Location Mars E20.ndf (Public)
EXHIBIT A
ASSIGNMENT AND ASSUMPTION AGREEMENT
Consent to Assignment ofCSC No. 48506
by Dumont Group Properties Vt, LLC
to: Air Center Helicopters, tic.
Page 9 of 8
ASSIGNMENT AND ASSUMPTION OF LEASE
This ASSIGNMENT AND ASSUMPTION OF LEASE (this "Assignment") is made
effective this 15th day of April, 2022, ("Effective Date"), by and between Dumont Group
Properties VI, LLC, a Delaware limited liability company ("Assignor"), and Air Center
Helicopters, Inc., a Delaware corporation ("Assignee"), sometimes together referred to as
the "Parties."
WITNESSETH:
WHEREAS, pursuant to that certain Unimproved Ground Lease Agreement for Lease
Site No. 20E Fort Worth Spinks Airport, more commonly known as City
Secretary Contract No. 48506, attached hereto as Exhibit "A" and incorporated herein by
reference, by and between Assignor and the City of Fort Worth, having an effective date
of January 1, 2017 (the "Lease Agreement"), Assignor is currently the lessee of
approximately 158,735 square feet of unimproved ground space at Fort Worth Spinks
Airport in Fort Worth, Tarrant County, Texas, known as Lease Site No. 20E
(the "Premises"), being more particularly described in Exhibit "A";
WHEREAS, Assignor desires to assign the Lease Agreement to Assignee, and Assignee
desires to assume the Lease Agreement in compliance with and pursuant to the terms of
Sections 16.1 and 16.2 of the Lease Agreement;
WHEREAS, the City of Fort Worth is willing to approve this Assignment on the conditions
that all terms and conditions of the Lease Agreement and all related documents remain
in full force and effect and that Assignee is bound by the terms and conditions of the
Lease Agreement as if it had executed the Lease Agreement as an original lessee.
NOW, THEREFORE, in consideration of the mutual agreements contained herein and
other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Parties agree as follows:
1. Assignor does hereby assign, sell, transfer, and convey to Assignee, all of
Assignor's right, title and interest in and to the Lease Agreement, in the leasehold
created thereby, and any and all improvements located on the Premises, to have
and to hold from the Effective Date hereof until the end of the term of the Lease
Agreement, as such term may be extended pursuant to the terms of the Lease
Agreement.
2. Assignee hereby accepts such assignment and transfer and agrees to assume and
to perform and discharge all obligations, liabilities, duties and covenants of
Assignor under the Lease Agreement as of the Effective Date hereof, including,
but not limited to, the payment of rent, payment of utilities, procurement of
insurance, obligations to indemnify, compliance with any applicable laws and
regulations and performance of upkeep, maintenance and repairs of the Premises,
ASSIGNMENT AND ASSUMPTION OF LEASE Page 1 of 3
IV274710015114 U3704.DOCX
where required by the Lease Agreement, which may arise on or after the Effective
Date hereof and relate to the period on or after the Effective Date hereof, to the
same extent as if Assignee had originally executed the Lease Agreement and was
named as the "Lessee" therein.
3. Assignee hereby indemnifies and holds Assignor harmless from and against any
and all claims, expenses, costs, obligations or other liabilities with respect to the
Lease Agreement arising or incurred on and after the Effective Date hereof with
respect to events occurring on and after the Effective Date.
4. Assignor makes no representations or warranties of any kind or nature whatsoever
with respect to the Lease Agreement or the Premises, whether express or implied,
any and all such representations and warranties being expressly disclaimed.
5. Assignor represents and warrants that there are no agreements, oral or written,
with respect to the use or occupancy of the Premises and the improvements
located thereon other than as contained in the Lease Agreement. Further,
Assignor represents that the Lease Agreement is in full force and effect, and is not
in default or subject to defense, offset, or counterclaim on the part of Assignor.
6. This Assignment shall inure to the benefit of and be binding upon and enforceable
against Assignor and Assignee and their respective successors and assigns.
7. This Assignment shall be deemed to be an agreement made under the laws of the
State of Texas, being where the Premises is located, and for all purposes shall be
governed by and construed in accordance with the laws of the State of Texas.
8. This Assignment contains the entire understanding between the Parties with
respect to the assignment of the Lease Agreement as contained herein. This
Assignment may not be changed or modified orally, but only by an agreement in
writing signed by the party against whom enforcement of any waiver, change, or
modification is sought.
9. This Assignment (and the City of Fort Worth's Consent to this Assignment attached
hereto and made a part hereof) may be executed in one or more counterparts,
each of which shall constitute an original and all of which, when taken together,
shall constitute but one and the same instrument.
To be effective the Effective Date provided hereinabove.
ASSIGNMENT AND ASSUMPTION OF LEASE Page 2 of 3
1 A0274710015114U3704. DOCX
ASSIGNOR:
By: DANIELS. PIRAINO
F} f
r.1
Dated:
ASSIGNEE:
By: JOHN L. BEAN
2022. Dated:
ASSIGNMENT AND ASSUMPTION OF LEASE Page 3 of 3
1.10274710015114V3704. DO CX
ASSIGNOR. ASSIGNEE:
By: By: John L. Sean
Dated: 12022, Dated:
ASSIGNMENT AND ASSUMPTION OF LEASE Page 3 of 3
l A0274710015%14 U3704.00CX
Exhibit "A"
Unimproved Ground Lease Agreement
Lease Site No, 20E
Fort Worth Spinks Airport
Page 1 l.)'f 38�
C12i63G5300 1213012016 2:40 PM PGS 38 Fee: $164.00 Submitter: SIMPLIFILE
Electronically Recorded by Tarrant County Clerk in Offirla[ Public Records
t-14T/ Mary Louise Garcia
FORTWORTH
STATE OF TEXAS §
C0v-N1 1ES OF TARRANT, DENTON, JOHNSON, PARKER, AND WISE §
I, RONALD P. GON7ALES, Assistant City Seoretary of the City of Fort Worth, Texas do
hcrcby ceitify that the above and foregoing is a trice and correct copy of Contract No, 48506, duly
presented, approved, and authorized by the City Council of the, City of Fort Worth, Texas, at a
regular meeting held on the 13"' day of December, 2016, on M&C C-28043, as same appears of
record in the Office of the City Secretary,
WITNESS MY HAND and the Official Seal of the City of Fort Worth, Texas, this the 28"
day of December, 2016,
f e 1.�
Ronald P. Gonzales, sistant City Secretary
City of Fort Wortb, Texas
City secrdtary's Office
City of Fort Worth* 1060 Throclomrton $srewkFort Woah, i'cxas 76102
(817) 392-6150*FAX (817) 392-6196
FORTWORTH
197VLO -cam
STATE OF TEXAS §
COUNTIES OF TARPANT, DENTON, JOHNSON, PARKER, AND WISE . §
I, RONALD P. GONZALES, Assistant City Secretary of the City of port Worth, Texas do
hereby certify that the above and foregoing is a true and correct copy of Contract No. 48506, duly
presented, approved, and authorized by the City Council of the City of Fort Worth, Texas, at a
regular meeting held on the IP day of December, 2016, on M&C C-28043, as same appears of
record in the Office of the City Secretary.
WITNESS MY HAND and the Official Seal of the City of Fort Worth, Texas, this the 28`r`
day of December, 2016.
Ronald P. Gonzales, sistant City Secretary
City of Fort Worth, Texas
City Secretary's Office
City of Fort Worth*1000 Tlwoclanorton Street*Foit Worth, Texas 76102
(817) 392-6150*FAX (817) 392-6196
FORTWORTH
STATE OF TEXAS §
COUNTIES Ok TARRANT, DENTON, JOHNSON, PARKER, AND WISE §
1, RONALD P. GONZALES, Assistant City Secretary of the City of Fort Worth, Texas do
hereby certify that the above and foregoing is a true and correct copy of Contract No. 48506, duly
presented, approved, and authorized by the City Council of the City of Fort Worth, Texas, at a
regular meeting hold on the 13"' day of December, 2016, on M&C C-28043, as same appears of
record in the Office of the City Secretary.
WITNESS MY HAND and the Official Seal of the City of Fort Worth, Texas, this the 28"'
day of December, 2016.
2/' � 0, L—
Ronald P. Gonzales, Usistant City Secretary
City of Fort Worth, "Texas
1
/r
A
City Secretary's Office
City of Fort Worth*1000 Throckinorton Street*Fort Worth, Texas 76102
(817) 392-6150*FAX (817) 392-6196
T i
CITY SECRETARY t
FORT WORTH SPINKS AIRPORT CONTRACTNO.
HANGAR AND GROUND LEASE AGREEMENT
LEASE, SITES 20E
This HANGAR AND GROUND LEAST AGREEMENT ("Lease") is made and entered
into by and between the CITY OF FORT WORTH ("Lessor"), a home rule municipal
corporation organized under the laws of the State of Texas, acting by and through Fernando Costa,
its duly authorized Assistant City Maliager, and DUMONT GROUP PROPERTIES VI, LLC
("Lessee"), a Delaware Limited Liabilit), Company, acting by and through Kevin M. Wargo, its
duly authorized Manager.
AGREEMENT
In consideration of the mutual covenants, promises and obligations contained herein, the
parties agree as follows:
1. PROPERTY LEASED,
Lessor hereby demises to Lessee 158,735 square feet of ground space ("Ground Space"),
including a 51,300 square foot hangar ("Hangar"), known as Lease Site 20E, ("Prernises"),
at Fort Worth Spirlks. Airport ("Airport") in Fort Worth, Tarrant County, Texas, as shown ill
Exhibit "A", attached hereto and made a part of this Lease for all purposes.
2. TERM OF LEASE.
2.1. Initial Term.
The initial term of the Lease ("Initial Terrn") shall commence at 12:00 a.m. on
January 1, 2017 ("Effective Date") and expire at 11:59 P.M. on December 31,
2056, unless terminated earlier as provided herein.
The ground rate described in Section 3 below will begin on the Effective Date of the
Lease and continue through the full term of the Lease Agreement.
On January 1, 2049, a hangar rate will he added to the Lease Agreement and
included with the ground rate pursuant to Section 3 below. The hangar rate will be
equal to the then Fair Market Valtre, as determined by Lessor's market analysis and
will expire with the ground rate on December 31, 2056. The hangar rate will be.
determined in a uniforin non-discriminatory manner in accordance with all
applicable laws, rules and regulations applicable to the Airport,
uunror T GrrouP, r.r.c OFFICIAL RECON0
Hangarand Ground Lcasc CITY UY
Lease Site20F.
Pon worth Spinl:s Arrp r( FT. W0 11THP TX
Page 1 ar21
2.2. Holdover.
If Lessee holds over after the expiration of the Initial Term or any Renewal Term,
this action will create a month -to -month tenancy. In this event, for and during the
holdover period, Lessee agrees to pay all applicable rentals, Fees and charges at the
rates provided by Lessor's Schedule of Rates and Charges or similarly published
schedule in effect at the time of the Holdover. 'The hangar rate will be adjusted to
equal the then Fair Market Value, as determined by Lessor's market analysis. In no
case shall the hangar rate be less than the value assessed upon completion of a
property appraisal completed by a third party vendor that has been approved and
secured by Lessor. A ten percent (10%) increase will be added to the Fair Market
Value rate until a new lease agreement is approved and executed. The holdover
period will not exceed six (6) months from the time the current lease agreement
expires. Upon the expiration of the holdover period, the City may exercise all legal
rights and remedies available, including but not limited to eviction.
3. RENT.
3,1. Rates and A.diustments
The rental rates under this Lease are based on Lessor's current published Schedule
of Rates and Charges described on Exhibit "B" attached hereto and made a part of
this Lease for all purposes. Rental rates are subject to increase beginning October 1,
2017, and on October 0 of any subsequent year during the Initial Tenn, to reflect
any upward change in the Consumer Price Index for the Dallas/Fort Worth
Metropolitan -as announced by the United States Department of Labor or successor
agency (i) for the first increase, since the Effective Date of this Lease and (ii) for
each subsequent increase, since the effective date of the last increase; provided,
however, that Lessee's rental rates shall not exceed the then -current rates prescribed
by Lessor's published Schedule of Rates and Charges for the type or types of
property similar to the type or types of property that comprise the Premises.
3.1.1 Hangar Rate
Lessee shall continence the payment of rent for the hangar on January 1,
2049. Lessee hereby promises and agrees to pay Lessor, as annual rent for
the Hangar, the then Fair Market Value, as deterrnhred by Lessor's market
analysis,_which analysis shall be uniform and non-discriminatory and
compliant with all applicable laves, rules and regulations applicable to the
Airport. A Lease Amendment will be drafted to include the hangar rate.
3.1.2 Ground Rate
Lessee shall commence the payment of rent for the Ground Space on the
Effective Date. Lessee hereby promises and agrees to pay Lessor, as annual
rent for the Ground Space, forty-two thousand, eight hundred fifty-eight
dollars and forty-five cents ($42,858.45), at a rate of twenty-seven cents
DUI%40NT GROUP, LLC
Hangar and Ground Lease
Lease Sife 2OF
Port Woilh Spinks Airport
Page 2 of 21
($0.27) per square foot, payable in equal monthly installments of three
thousand, five hundred seventy-one dollars and fifty-four cents ($3,571,54).
3.2. Five -Year Adjustments
In addition to the Annual Rent Adjustments, on October 1, 2022, and every fifth (51")
year thereafter for the remainder of the Initial Term (i.e, on October 1 st of 2027,
2032, 2037, 2042, 2047, and 2052), rent shall automatically be adjusted to equal the
then current rates prescribed by the Schedule of Rates and Charges for the type or
types of property at the Airport similar to the type or types of property that comprise
the Premises.
3.3 Payment Dates and Late Fees.
MontlAy rent payments are due on or before the first (Ist) day of each month.
Payments must be received during normal business hours by the due date at the
location for Lessor's Aviation Department set forth in Section 15. Rent shall be
considered past due if Lessor has not received full payment by close of business the
tenth (10th) day of the month for which payment is due. Without limiting, Lessor's
termination rights as provided by this Lease, Lessor will assess a late penalty charge
of ten percent (10%) per month on the entire balance of any overdue rent that Lessee
may accrue.
4. CONSTRUCTION AND IMPROVEMENTS,
4.1. Discretionary Improvements
Lessee may, at its sole discretion, perform modifications, renovations, improvements
or other construction work on any tract of the Premises. Lessee may not initiate any
discretionary improvement on or to the Premises unless it first submits all plans,
specifications and estimates for the costs of same to Lessor in writing, and also
requests and receives in writing approval from. Lessor's Director of Airport Systems
or authorized representative ("Director"), Lessee covenants and agrees that it shall
fully comply with all provisions of this Section 4 in the construction of any such
discretionary improvements, Lessor shall promptly review, consider and make a
decision on approval of such plans, specifications and estimates, which approval
shall not be unreasonably withheld, delayed or conditioned. Upon completion of
any such Discretionary Improvements or the termination of this Lease, Lessor shall
take full title to any Discretionary Improvements on the Premises.
4.2. Documents.
Lessee shall supply the Director with comprehensive sets of documentation relative
to any discretionary improvement, including, at a minimum, a copy of the Certificate
of Occupancy, a complete set of Record Drawings and/or As -Built Drawings in
Adobe PDF and AutoCAD formats, and a Sumrna►y of the total cost/value of the
discretionary improvements.
DUNIONT GROUP, I.IX
Hangar and Ground Lease
Luse Site 20E
Fort Worth Spirits Airport
Page 3 of 21
4.3 Bonds Repaired of Lessee.
Prior to the conunencernent of any Improvement, Lessee shall deliver to Lessor a
bond, executed by a corporate surety in accordance with Texas Government Code,
Chapter 2253, as amended, in the full amount of each construction contract or
project. The bonds shall guarantee (i) satisfactory compliance by Lessee with all
applicable requirements, terms and conditions of this Lease, including, but not
limited to, the satisfactory completion of the respective Improvements, and (ii) Rill
payments to all persons, firms, corporations or other entities with whom Lessee has
a direct relationship for the construction of such Improvements.
In lieu of the required bond, Lessee may provide Lessor with a cash deposit or an
assignment of a certificate of deposit in an amount equal to 125% of the full amount
of each construction contract or project. If Lessee makes a cash deposit, Lessee
shall not be entitled to any interest earned thereon. Certificates of deposit shall be
from a financial institution in the Dallas -Fort Worth Metropolitan Area which is
insured by the Federal Deposit Insurance Corporation and acceptable to Lessor. The
interest earned on the certificate of deposit shall be the property of Lessee and
Lessor shall have no rights in such interest. If Lessee fails to complete the respective
Improvements, or if claims are filed by third parties on grounds relating to such
Improvements, Lessor shall be entitled to draw down the full amount of Lessee's
cash deposit or certificate of deposit and apply the proceeds to complete the
Improvements or satisfy the claims, provided that any balance shall be remitted to
Lessee.
4.4 Bonds Required. of Lessee's Contractors,
Prior to the commencement of any discretionary improvement in excess of
$100,000.00, each, of Lessee's contractors shall execute and deliver to Lessee surety
performance and payment bonds in accordance with the Texas Government Code,
Chapter 2253, as amended, to covet` the costs of all work performed under such
contractor's contract with Lessee. Lessee shall provide. Lessor with copies of such
bonds prior to the commencement of such discretionary improvement. The bonds
shall guarantee (i) the faithful performance and completion of all construction work
in accordance with the final plans and specifications as approved by Lessor, and (ii)
Rill payment for all wages for labor and services and of all bills for materials,
supplies and equipment used in the performance of the construction contract. Such
bonds shall nacre both Lessor and Lessee as dual obligees. If Lessee serves as its
own contractor, Section 4.5 shall apply.
4.5 Relcases by Lessor Upon Completion of Construction Work.
Lessor will allow Lessee a dollar -for -dollar reimbursement from its cash deposit
account or reduction, of its claim upon Lessor's certificate of deposit to the extent of
construction costs paid through that date upon (i) where Lessee serves as its own
contractor, verification that Lessee has completed construction work, of (ii) where
DUMONT GROUP [,LC
I angar and Ground L17se
Wtw Site 20F
Fort worth Slinks Airport
Page 4 of 21
Lessee uses a contractor, receipt of the contractor's invoice and verification that the
contractor has completed its work and released Lessee to the extent of Lessee's
payment for such work, including bills paid affidavits and final waivers of liens.
Any unused amounts in the cash deposit account will be refunded to Lessee upon
final completion of the construction work,
5. USE OF PRE, MISES.
Lessee hereby agrees to use the Premises solely for aviation -related purposes only and
strictly in accordance with the terms and conditions of this Lease, Lessee shall have the
right to sublease —the Premises or any portion thereof to its affiliate Dumont Aircraft
Maintenance, LLC ("Dutnont"), and other third parties ("Sub1C58CCS") for aviation -related
purposes only under terms and conditions acceptable to and determined by Lessee, provided
that all such arrangements shall be in writing and, except for a sublease to Dumont,
approved in advance by Lessor, such approval not to be unreasonably withheld, delayed or
conditioned. All written agreements executed by Lessee to Sublessees for any portion of the
Premises shall contain terms and conditions that (i) do not conflict with Lessee's duties and
obligations under this Lease; (ii) incorporate the terms and provisions of this Lease; (iii)
restrict the use of the Premises to aircraft storage or other aviation or aviation -related
purposes acceptable to Lessor; and (iv) treat users of the same or substantially similar
facilities in a fair and nondiscriminatory manner. Lessee shall use a standard lease form
for all Sublessees and shall submit a copy of such standard lease form to the Director prior
to Lessee's execution of its first lease and from time to time thereafter following any
material changes to such lease form. Lessee may make non -material modifications to its
standard lease to the extent that such are not contrary to Lessor's Sponsor's Assurances
without the prior written consent of Lessor.
6. REPORTS, AUDITS AND RE,CORDIMEPING.
Within thirty (30) days following the end of each calendar year, Lessee shall provide Lessor
with a written annual report, in a form acceptable to the Director, that reflects Lessee's rental
rates for the immediately preceding calendar year. Lessor may request, and Lessee shall
promptly provide, similar reports on a more fi•equent basis that reflect Lessee's rental rates
on the Premises for the period requested by Lessor. These reports shall be delivered to
Lessor's Department of Aviation at the address provided in Section 15. In addition, Lessee
shall keep and maintain books and records pertaining to Lessee's operations at the Airport
and other obligations hereunder in a manner reasonably satisfactory to Lessor's Internal
Auditor, which will be delivered to the Premises upon Lessor's written request. Upon
Lessor's request and following reasonable advance notice, Lessee will make such books and
records available for review by Lessor during Lessee's normal business hours. Lessor, at
Lessor's sole cost and expense, shall have the right to review such books and records in
order to ensure compliance with the terms of this Lease and the Sponsor's Assurances made
by Lessor to the Federal Aviation Administration.
7. UTILITIES.
DUMONT CROUP, LLC
Hangar and Ground Lcose
Lcasc Sitc 20L
fort Worth .Spinks Airpoit
Page 5 of 21
Lessee, at Lessee's sole cost and expense, shall be responsible for the installation and use of
all utility services to all portions of the Premises and for all other related utility expenses,
including, but not limited to, deposits and expenses required for the installation of meters.
Lessee further covenants and agrees to pay all costs and expenses for any extension,
maintenance or repair of any and all utilities serving the Premises. In addition, Lessee
agrees that all utilities, air conditioning and heating equipment and other
electrically -operated equipment which may be used on the Premises shall fully comply with
Lessor's Mechanical, Electrical, Plumbing, Building and Fire Codes ("Cedes"), as they
exist or may hereafter be amended.
8. MAINTENANCE AND REPAIRS.
8.1. Maintenance and Repairs by Lessee.
Lessee agrees to keep and maintain the Premises in a good, clean and sanitary
condition at all times, reasonable wear and tear and damage caused by casualty
excepted. Lessee covenants and agrees that it will not make or suffer any waste of
the Premises. Lessee, at Lessee's sole cost and expense, will make all repairs or
replacements necessary to prevent the deterioration in condition or value of the
Premises, including, but not limited to, the maintenance of and repairs to all hangars
and other structures, doors, windows and roofs, and all fixtures, equipment, hangar
modifications and surrounding pavement on the Premises. Lessee shall be
responsible for all damages caused by Lessee, its agents, servants, employees,
contractors, subcontractors, licensees or invite, and Lessee agrees to fully repair all
such damages at Lessee's sole cost and expense.
Lessee agrees that all improvements, trade fixtures, furnishings, equipment and other
personal property of every kind or description which may at any tinne be on the
Premises shall be at Lessee's sole risk or at the sole risk of those claiming under
Lessee. Lessor shall not be liable for any damage to such property or loss suffered
by Lessee's business or business operations, which may be caused by the bursting,
overflowing or leaking of sewer or steam pipes, from water from any source
whatsoever, or from any heating fixtures, plumbing fixtures, electric wires, noise,
gas or odors, or from causes of any other matter.
8.2.. Compliance with ADA.
Lessee, at its sole cost and expense, agrees to keep and maintain the Premises in full
compliance at all times with the Americans with Disabilities Act of 1990, as
amended ("ADA"). In addition, Lessee agrees that all improvements it makes at the
Airport shall comply with all ADA requirements.
8.3. Inspections.
8.3.1. Lessor shall have the right and privilege, through its officers, agents, servants
or employees, to inspect the Premises. Except in the event of an emergency,
Lessor shall conduct such inspections during Lessee's ordinary business
DUMONT GROUP, LLC
Hangar mid Ground Lease
Lease Site 20E
Dori Worth Spinks Airport
Page 6 of 2l
hours and shall provide Lessee at least two (2) hours' notice prior to any
inspection.
8.3.2. If Lessor determincs during an inspection of the Premises that Lessee is
responsible under this Lease for any maintenance or repairs, Lessor shall
notify Lessee in writing. Lessee agrees to begin such maintenance or repair
work diligently within thirty (30) days following receipt of such notice and
to then complete such maintenance or repair work within a reasonable time,
considering the nature of the work to be done, If Lessee fails to begin the
recommended maintenance or repairs within such time or fails to complete
the. maintenance or repairs within a reasonable time, Lessor may, in its
discretion, after written notice to Lessee, perform such maintenance or
repairs, on behalf of Lessee. In this event, Lessee will reimburse Lessor for
the cost of the maintenance or repairs, which cost Lessor shall provide to
Lessee in writing, including supporting documentation, and such
reimbursement will be due on the date of Lessee's next monthly rent
payment following completion of the maintenance or repairs.
8.3.3. During any inspection, Lessor may perform any obligations that Lessor is
authorized or required to perform under the terms of this Lease or pursuant
to its governmental duties under federal, state or local laws, rules or
regulations.
8.3.4. Lessee will permit the City's Fire Marshal or his or her authorized agents to
inspect the Premises and Lessee will comply with all requirements of the
Fire Marshal or his or her authorized agents that are necessary to bring the
Premises into compliance with the City of Ford Worth Fire Code and
Building Code provisions regarding fire safety, as such provisions exist or
may hereafter be amended. Lessee shall maintain in proper condition
accessible fire extinguishers of a number and type approved by the Fire
Marshal or his or her authorized agents for the particular hazard involved.
8.4. Environmental Rernediation.
To the best of Lessor's knowledge, the Premises comply with all applicable federal,
state and local environmental regulations or standards. Lessee agrees that it has
inspected the Premises and is firlly advised of its own rights without reliance upon
any representation made by Lessor concerning the environmental condition of the
Premises. LESSEE, AT ITS SOLE COST AND EXPENSE, AGREES THAT IT
SHALL BE FULLY RESPONSIBLE FOR THE REMEDL4TION OF ANY
VIOLATION OF ANY APPLICABLE FEDERAL, STATE OR LOCAL
ENVIRONMENTAL REGULATION OR STANDARD THAT IS CAUSED BY
LESSEE, ITS OFFICERS, AGENTS, SERVANTS, EMPLOYEES,
CONTRACTORS, SUBCONTRACTORS OR INVITE, ES.
9. SIGNS.
DUMONT GROUP, I.r.0
Hangar and Ground Lease
Lcasc S itc XE-
Fort Wortlt ,9ph*s Airport
Page 7 of 21
Lessee may, at its sole expense and with the prior written approval of the Director, which
approval shall not be unreasonably withheld, delayed or conditioned, install and maintain
signs on the exterior of the Premises related to Lessee's business operations. Such signs,
however, must be in keeping with the size, color, location and manner of display of other
signs at the Airport. Lessee shall maintain all such signs in a safe, neat, sightly and
physically good condition.
10. RIGHTS AND RESERVATIONS OF LESSOR.
Lessor hereby retains the following rights and reservations:
10.1. Lessor reserves the right to tape any action it considers necessary to protect the aerial
approaches of the Airport against obstruction, including, but not limited to, the right
to prevent Lessee from erecting or permitting to be erected any building or other
structure which, in the opinion of Lessor, would limit the usefulness of the Airport,
constitute a hazard to aircraft or diminish the capability of existing or future
avigational or navigational aids used at the Airport,
10.2 Lessor reserves the right to develop and improve the Airport as it sees fit, regardless
of the desires or view of Lessee, and without interference or hindrance by or on
behalf of Lessee, provided that such development and improvement shall not
unreasonably interfere with Lessee's use and enjoyment of the Premises hereunder.
Accordingly, nothing contained in this Lease shall be construed to obligate Lessor to
relocate Lessee as a result of any such Airport developments or improvements.
10.3 This Lease shall be subordinate to the provisions of any existing or future agreement
between Lessor and the United States Government, which relates to the operation or
maintenance of the Airport and is requited as a condition for the, expenditure of
federal funds for the development, maintenance or repair of Airport infrastructure.
In the event that any such existing or future agreement directly causes a material
restriction, impairment or interference with Lessees primary operations on the
Premises ("Limitation") for a period of less than seven (7) days, this Lease shall
continue in full force and effect. If the Limitation lasts more than seven (7) days,
Lessee and Lessor shall negotiate in good faith to resolve or mitigate the effect of the
Limitation. If Lessee and Lessor ate in good faith unable to resolve or mitigate the
effect of the Lirnitation, and the Limitation lasts between seven (7) and one hundred
eighty (180), then for such period (i) Lessee may suspend the payment of any rent
due hereunder, but only if Lessee first provides adequate proof to Lessor that the
Limitation has directly caused Lessee a material loss in revenue; (ii) subject to
ordinary wear and tear, Lessor shall maintain and preserve the Premises and its
improvements in the same condition as they existed on the date such Limitation
commenced; and (iii) the term of this Lease shall be extended, at Lessee's option, for
a period equal to the duration of such Limitation. If the Limitation lasts more than
one hundred eighty (180) days, then (i) Lessor and Lessee may, but shall not be
required to, (a) further adjust the payment of rent and other fees or charges, (b)
renegotiate maintenance responsibilities and (c) extend the term of this Lease, or (ii)
DUMONT GROUP, I.LC
I langar and Oround Lease
Leine Site 20E
Fort Worlh Spids Airport
Page 8 of 21
Lessee may terminate this Lease upon tlirty (30) days' written notice to Lessor, or
(iii) Lessee may exercise any other legal rights or remedies available to it.
10.4 During any war or national emergency, Lessor shall have the right to lease any part
of the Airport, including its landing area, to the United States Government. III this
event, any provisions of this instrument which are inconsistent with the provisions of
the lease to the Government shall be suspended. Lessor shall not be liable for any
loss or damages alleged by Lessee as a result of this action. However, nothing in
this Lease shall prevent Lessee from pursuing any rights it may have for
reimbursement fi-om the United States Government. If any lease between Lessor
and the United States Government executed pursuant to this SQction 10.4 directly
causes a Limitation for a period of less than seven (7) days, this Lease shall continue
in full force and effect. If the Limitation lasts more than seven (7) days, Lessee and
Lessor shall negotiate in good faith to resolve or mitigate the effect of the Limitation.
If Lessee and Lesson are in good faith unable to resolve or mitigate the effect of the
Limitation, and the Limitation lasts between seven (7) and one hundred eighty (180)
days, then for such period (i) Lessee may suspend the payment of any rent due
hereunder, but only if Lessee first provides adequate proof to Lessor that the
Limitation has directly caused Lessee a material loss in revenue; (ii) subject to
ordinary wear and fear, Lessor shall maintain and preserve the Premises and its
improvements in the same condition as they existed on the date such Limitation
commenced; and (iii) the term of this Lease shall be extended, at Lessee's option, for
a period equal to the duration of such Limitation. If the Limitation lasts more than
one hundred eighty (180) days, then (i) Lessor and Lessee may, but shall not be
required to, (a) further adjust the payment of rent and other fees or charges, (b)
renegotiate maintenance responsibilities and (c) extend the term of this Lease, or (ii)
Lessee may terminate this Lease upon thirty (30) days' written notice to Lessor.
10.5 Lessor covenants and agrees that during the term of this Lease it will operate and
maintain the Airport and its facilities as a public airport consistent with and pursuant
to the Sponsor•'s Assurances (as defined in FAA Compliance Manual S 190-6b) given
by Lessor to the United States Government through the Federal Airport Act; and
Lessee agrees that this Lease and Lessee's rights and privileges hereunder shall be
subordinate to the Sponsor's.
10.6 Lessee's rights hereunder shall be subject to all existing and fixture utility and
drainage casements and rights -of -way granted by Lessor for the installation,
maintenance, inspection, repair or removal of facilities owned or operated by electric,
gas, water, sewer, communication or other utility Companies. Lessee's rights shall
additionally be subject to all rights granted by any ordinance or statute which allows
utility companies to use publicly -owned property for the provision of utility services.
10.7 Lessor agrees Lessee shall have the right of ingress and egress to and from the
Premises by means of roadways for automobiles and taxiways for aircraft including
access during the conshuction phase of airport improvements, unless otherwise
agreed to in writing by both parties. Such rights shall be consistent with the rules and
regulations with respect to the occupancy and use of airport premises as adopted
DUNIONT GROUP, LLC
Hangar and Ground Lease
Lcasu Site 20E
tort Worth Spinks Airport
Page 9 of21
from time to time by the City of Fort Worth and by the Federal Aviation
Administration or any other state, federal or local authority.
11. INSURANCE.
Lessee shall procure and maintain at all times, in full Force and effect, a policy or policies of
insurance as specified herein, naming the City of Fort Worth, its Officers, Employees and
Volunteers as an additional insured and covering all public risks related to the leasing, use,
occupancy, maintenance, existence or location of the Premises. Lessee shall obtain the
required insurance in accordance with Exhibit "C", the "City of Fort Worth Aviation
Insurance Requirements" attached hereto and made part of this Lease for all purposes.
In addition, Lessee shall be responsible for all insurance for construction, improvements,
modifications or renovations to the Premises and for personal property of its own or in its
care, custody or control.
11.1. Adiustments to Required Coverage and Lirrl;its.
Insurance requirements, including additional types of coverage and increased limits
on existing coverages, are subject to change at Lessor's option and as necessary to
cover Lessee's and any Sublessees' operations at the Airport, Lessee will
accordingly comply with such new requirements witl-dn thirty (30) days following
notice to Lessee.
11..2. Certificates.
As a condition precedent to the effectiveness of this Lease, Lessee shall furnrish
Lessor with appropriate certificates of insurance signed by the respective insurance
companies as proof that it has obtained the types and amounts of insurance coverage
required herein, Lessee hereby covenants and agrees that not less than thirty (30)
days prior to the expiration of any insurance policy required hereunder, it shall
provide Lessor with a new or renewal certificate of insurance. In addition, Lessee
shall, at Lessor's request, provide Lessor with evidence that it has maintained such
coverage in full force and effect.
11.3. Additional Reauir-emerrts.
Lessee shall maintain its insurance with underwriters authorized to do business in
the State of Texas and which are reasonably satisfactory to Lessor. The policy or
policies of insurance shall be endorsed to cover all of Lessee's operations at the
Airport, to grant additional insured status to the City, its Officers, Employees and
Volunteers, and to provide that no material changes in coverage, including, but not
limited to, cancellation, termination, non -renewal or amendment, shall be made
without thirty (30) days' prior written notice to Lessor. Lessor shall be responsible
for notifying the City of any change to its insurance coverage that amends or alters
that coverage required by this lease.
DUMONT GROUP, LLC
Hangar and Ground Lease
Lease site 20E
Port Worth Spinks Airport
Page 10 of21
12. INDEPENDENT CONTRACTOR.
It is expressly understood and agreed that Lessee shall operate as an independent contractor
as to all rights and privileges granted herein, and not as an agent, representative or einployee
of Lessor. Lessee shall have the exclusive right to control the details of its operations and
activities on the Premises and shall be solely responsible for the acts and omissions of its
officers, agents, servants, employees, contractors, subcontractors, patrons, licensees and
invitees. Lessee acknowledges that the doctrine of respondeat sxr13er for shall not apply as
between Lessor and Lessee, its officers, agents, employees, contractors and subcontractors.
Lessee Rirther agrees that nothing herein shall be construed as the creation of a partnership
or joint enterprise between Lessor and Lessee.
1.3. INDEMNIFICATION.
LESSEE HEREBY ASSUMES ALL LIABILITY AND RESPONSIBILITY FOR
PROPERTY LOSS, PROPERTY DAMAGE AND/OR PERSONAL INJURY OF ANY
IUND, INCLUDING DEATH, TO ANY AND ALL PERSONS, OF ANY KIND OR
CHARACTER, WHETHER REAL OR ASSERTED, ARISING OUT OF OR IN
CONNECTION WITH ITS USE OF THEAIRPORT UNDER THIS LEASE OR WITH
T11E LEASING, MAINTENANCE, USE, OCCUPANCY, EXISTENCE OR LOCATION
OF THE PREMISES, EXCEPT TO THE EXTENT CAUSED BY THE GROSS
NEGLIGENCE OR INTENTIONAL MISCONDUCT OF LESSOR, ITS OFFICERS,
AGENTS, SERVANTS OR EMPLOYEES
DURING THE TERM OF THIS LEASE, LESSEE COVENANTS AND AGREES TO,
AND DOES TO THE EXTENT ALLOWED BY LAW, WITHOUT WAIVING ANY
DEFENSES PROVIDED BYLAW, HEREBYINDEMNIFY, HOLD HARMLESSAND
DEFEND LESSOR, ITS OFFICERS, AGENTS, SERVANTS AND EMPLOYEES,
FROM AND AGAINST ANY AND ALL CLAIMS OR LAWSUITS FOR EITHER
PROPERTY DAMAGE OR LOSS, INCLUDING ALLEGED DAMAGE OR LOSS TO
LESSEE'S BUSINESS AND ANY RESULTING LOST PROFITS, AND/OR
PERSONAL INJURY INCLUDING DEATH, TO ANYAND ALL PF_RSONs, OFANY
KIND OR CHARACTER, WHETHER REAL OR ASSERTED, ARISING OUT OF OR
IN CONNECTION WITH LESSEE'S USE OF THE AIRPORT UNDER THIS LEASE
OR WITH THE USE, LEASING, MAINTENANCE, OCCUPANCY, EXISTENCE OR
LOCATION OF THE PREMISES, EXCEPT TO THE EXTENT CAUSED BY THE
GROSS NEGLIGENCE OR INTENTIONAL MISCONDUCT OF LESSOR, ITS
OFFICE, RS A GENTS, SERVANTS OR EMPLOYEES
LESSEE ASSUMES ALL RESPONSIBILITY AND AGREES TO PAY LESSOR FOR
ANY AND ALL INJURIES OR DAMAGES TO LESSOR'S PROPERTY WHICH
ARISE OUT OF OR IN CONNECTION WITH ANYAND ALL ACTS OR OMISSIONS
OF LESSEE, ITS OFFICERS, AGENTS, EMPLOYEES, CONTRACTORS,
SUBCONTRACTORS, LICENSEES OR INVITEES, EXCEPT TO THE EXTENT
CAUSED BY THE GROSS NEGLIGENCE OR INTENTIONAL MISCONDUCT OF
LESSOR, ITS OFFICERS, AGENTS, SERVANTS OR EMPLOYEES.
nUNIONT GROUP, LLC
Hangar and Ground Lease
Lease Site 2013-
Port Worilt SpiAs Airport
Pogo 11 or21
LESSOR DOES NOT GUARANTEE POLICE PROTECTION TO LESSEE, ANY
SUBLESSEES OR THEIR PROPERTY. LESSOR IS OBLIGATED ONLY TO
PROVIDE SECURITY ADEQUATE TO MAINTAIN LESSOR'S CERTIFICATION
UNDER FAA REGULATIONS. LESSEE SHALL COMPLY WITH ALL
APPLICABLE REGULATIONS OF THE FAA RELATING TO AIRPORT SECURITY.
LESSEE SHALL PAY ALL FINES IMPOSED BY THE FAA ON LESSOR OR
LESSEE RESULTING FROM LESSEE'S OR ANY SUBLESSEES' FAILURE TO
COMPLY WITH SUCH FAA REGULATIONS OR TO PREVENT UNAUTHORIZED
PERSONS OR PARTIES FROM OBTAINING ACCESS TO THE AIR OPERATIONS
AREA OF THE AIRPORT FROM THE PREMISES
14. TERMINATION.
In addition to termination rights contained elsewhere in this Lease, Lessor shall have the
right to terminate this Lease as follows:
14.1. Failure by Lessee to Pay Rent, Fees or Other Charges.
If Lessee fails to pay any rent, fees or other charges due udder this Lease, Lessor
shall deliver to Lessee a written invoice and notice to pay the invoice within ten (10)
days. If Lessee fails to pay the balance outstanding within such time, Lessor shall
have the right to terminate this Lease immediately.
14,2. Breach or Default by Lessee.
If Lessee commits any breach or default, other than Lessee's failure to pay rent,
Lessor shall deliver written notice to Lessee specifying the nature of such breach or
default, provided, however, if such breach or default cannot reasonably be cured
within thirty (30) days, then Lessee shall have such period of time as is reasonably
necessary to cure such default, so long as Lessee promptly commences such cure
and diligently pursues same to completion. Lessee shall have thirty (30) days (or
such longer period as provided above) following such written notice to cure, adjust
or correct the problem to the standard existing prior to the breach or default. If
Lessee fails to cure the breach or default within such time period, Lessor shall have
the right to terminate this Lease immediately.
14.3. Abandonment or Non -Use of the Premises.
Lessee's abandonment or non-use of the Premises for any reason for more than thirty
(30) consecutive days, other than for renovations, alterations or because of a casualty,
shall constitute grounds for in- nnediate termination of this Lease by Lessor if Lessee
fails to occupy the Premises within ten (10) days after written notice fi-om Lessor to
Lessee.
14A. Lessee's Financial Obligations to Lessor upon Termination, Breach or Default.
DUhtONT GROUP, LLC
Hangarand (wound Lease
Lvise Site 20E
Fort Worth Spinks Airport
Pnge 12 01'21
15.
M.
If Lessor terminates this Lease for any non-payment of rent, fees or other charges or
for any other breach or default as provided in Sections 14.1, 14.2 or 14.3 of this
Lease, Lessee shall be liable for and shall pay to Lessor all rent due Lessor for the
remainder of the term then in effect as well as all arrearages of rentals, fees and
charges payable hereunder. In no event shall a reentry onto or reletting of the
Premises by Lessor be construed as an election by Lessor to forii it any of its rights
under this Lease.
14.5. Riahts of Lessor Uvon Termination or Expiration.
Upon termination or expiration of this Lease, all rights, powers and privileges
granted to Lessee hereunder shall cease and Lessee shall vacate the Premises.
Within twenty (20) days following the effective date of termination or expiration,
Lessee shall remove from the Premises all trade fixtures, tools, machinery,
equipment, materials and supplies placed on the Premises by Lessee pursuant to this
Lease. After such time, Lessor shall have the right to take full possession of the
Premises, by force if necessary, and to remove any and all parties and property
remaining on any part of the Premises. Lessee agrees that, in the event of a lawfirl
termination hereunder, it will assert no claim of any bind against Lessor, its agents,
servants, employees or representatives, which may stem from such lawful
termination of this Lease or any act incident to Lessor's assertion of its right to
terminate or Lessor's exercise of any rights granted hereunder.
NOTICES.
Notices required pursuant to the provisions of this Lease shall be conclusively determined to
have been delivered (i) when hand -delivered to the other party, its agents, employees,
servants or representatives, or (ii) five (5) days from the date on which such notice is
deposited in the United States Mail, postage prepaid, addressed as follows:
To LESSON:
City of Fort Worth
Aviation Department
4201 N Main St, Suite 200
Fort Worth TX 76106
ASSIGNMENT ,AND SUBLETTING.
164, In General.
nCr117ONT GROUP, LLC
I Inngar rind Ground Lease
Lcasc SiW 20E
Port Worm Spinks Airport
Page 13 or21
To LESSEE:
Dumont Group Properties VI, LLC
Attention: Kevin M. Wargo
2000 Brett Road
New Castle, DE 19720
With a mandatory copy to:
Joseph A. Martin, Esq.
Martin Law Firm, LLC
1521 Concord Pike, ,Suite 3 01
Wilmington, DE 19803
Lessee shall have the right to sublease the Premises (or any portion thereof) as
provided by and in accordance with Section S of this Lease. Otherwise, Lessee shall
not assign, sell, convey, sublease or transfer the entirety of its rights, privileges,
duties or interests granted by this Lease without the advance written consent of
Lessor, which consent shall not be unreasonably withheld, delayed or conditioned.
Notwithstanding the foregoing, Lessee may assign this Lease with Lessor's consent
to any entity that acquires all or substantially all of Dumont's assets.
16.2. Conditions of Approved Assianinents and Subleases.
If Lessor consents to any assignment or sublease, all terms, covenants and
agreements set forth in this Lease shall apply to the assignee or sublessee, and such
assignee or sublessee shall be bound by the terms and conditions of this Lease the
same as if it had originally executed this Lease. The failure or refusal of Lessor to
approve a requested assignment or sublease shall not relieve Lessee of its obligations
hereunder, including payment of rentals, fees and charges.
17. LIENS BY LESSEE.
Lessee acknowledges that it has no authority to engage in any act or to make any contract
which may create or be the foundation for any lien upon the property or interest in the
property of Lessor. If any such purported lien is created or filed, Lessee, at its sole cost and
expense, shall liquidate and discharge the same within thirty (30) days of such creation or
filing. Lessee's failure to discharge any such purported lien shall constitute a breach of this
Lease for which Lessor shall provide written notice hereunder and thirty (30) days to cure
such breach, failing which Lessor may terminate this Lease by written notice to Lessee.
However, Lessee's financial obligation to Lessor to liquidate and discharge such lien shall
continue in effect following termination of this Lease and until such a time as the lien is
discharged.
I.S. TAXES AND ASSESSMENTS.
Lessee agrees to pay any and all federal, state or local taxes or assessments which may
lawfully be levied against Lessee due to Lessee's use or occupancy of the Premises or any
improvements or property placed on the Premises by Lessee as a result of its occupancy.
19. COMPLIANCE WIT14 LAWS, ORDINANCES, RULES AND REGULATIONS.
Lessee covenants and agrees that it shall not engage in any unlawful use of the Premises.
Lessee further agrees that it shall not permit its officers, agents, servants, employees,
contractors, subcontractors, patrons, licensees or invitces to engage in any unlawful use of
the Premises and Lessee immediately shall remove from the Premises any person engaging
in such unlawful activities. Unlawful use of the Premises by Lessee itself shall constitute an
immediate breach of this Lease.
Lessee agrees to comply with all federal, state and local laws; all ordinances, rules and
regulations of Lessor; all rules and regulations established by the Director; and all rules and
DUMONT GROUP, LLC
Hangar and Ground Lease
Lease Site 20E
Port worth Shrinks Airport
Page 14 or2l
regulations adopted by the City Council pertaining, to the conduct required at airports owned
and operated by the City, as such laws, ordinances, rules and regulations exist or may
hereafter be amended or adopted. If Lessor notifies Lessee or any of its officers, agents,
employees, contractors, subcontractors, licensees or invitees of any violation of such laws,
ordinances, rules or regulations, Lessee and its officers, agents, employees, contractors,
subcontractors, licensees or invitees shall immediately desist from and correct the violation,
20. NON-DISCRIMINATION COVENANT.
Lessee, for itself, its personal representatives, successors in interest and assigns, as part of
the consideration herein, agrees as a covenant running with the land that no person shall be
excluded from participation in or denied the benefits of Lessee's use of the Premises on the
basis of race, color, national origin, religion, disability, sex, sexual orientation, transgender,
gender identity or gender expression. Lessee further agrees for itself, its personal
representatives, successors in interest and assigns that no person shall be excluded from the
provision of any services on or in the construction of any improvements or alterations to the
Premises on grounds of race, color, national origin, religion, disability, sex, sexual
orientation, tfansgender, gender identity or gender expression.
Lessee agrees to furnish its accommodations and to price its goods and services in a
commercially reasonable manner to all persons in accordance with all applicable laws,
ordinances, rules and regulations. In addition, Lessee covenants and agrees that it will at all
times comply with any requirements imposed by or pursuant to Title 49 of the Code of
Federal Regulations, Part 21, Non -Discrimination in Federally Assisted Programs, of the
Department of Transportation and with any amendments to these regulations which may
hereafter be enacted.
If any claim arises from an alleged violation of this non-discrimination covenant by Lessee,
its personal representatives, successors in interest or assigns, Lessee agrees to indemnify
Lessor and hold Lessor harmless.
21. LICENSES .AND PERMITS.
Lessee shall, at its sole expense, obtain and keep in effect all licenses and permits necessary
for the operation of its operations at the Airport.
22. GOVERNMENTAL POWERS.
It is understood and agreed that by execution of this Lease, Lessor does not waive or
surrender any of its governmental powers.
23. NO WAIVER.
The failure of Lessor to insist upon the performance of any term or provision of this Lease
or to exercise any right granted herein shall not constitute a waiver of Lessor's right to insist
upon appropriate performance or to assert any such right on any future occasion.
DUNIONr GROUP, LLC
Hangar and Ground Leasc
Lease Site 2Ur'.
Fort Worth Spiuks Airport
Page 15 of2l
24. VENUE AND JURISDICTION.
If any action, whether real or asserted, at law or in equity, arises on the basis of any
provision of this Lease or of Lessee's operations on the Premises, venue for such action shall
fie in state courts located in Tarrant County, Texas or the United States District Court for the
Northern District of Texas, Fort Worth Division. This Lease shall be construed in
accordance with the laws of the State of Texas.
25. ATTORNEYS' FEES.
In the event there should be a breach or default under any provision of this Lease and either
panty should retain attorneys or incur other expenses for the collection of rent, fees or
charges, or the enforcement of performance or observances of any covenant, obligation or
agreement, Lessor and Lessee agree that each party shall be responsible for its own
attorneys' fees.
26. SEVERABILITY.
If any provision of this Lease shall
validity, legality and enforceability
affected or impaired.
27. FORCE MAJEURE.
be held to be invalid, illegal or unenforceable, the
of the remaining provisions shall not in any way be
Lessor and Lessee shall exercise every reasonable effort to meet their respective obligations
as set forth in this Lease, but shall not: be held liable for any delay in or omission of
performance due to force majeure or other causes beyond their reasonable control, including,
but not limited to, compliance with any government law, ordinance or regulation, acts of
God, acts of omission, fires, strikes, lockouts, national disasters, wars, riots, material or
labor restrictions, transportation problems or any other cause beyond the reasonable control
of Lesson or Lessee,
28. HEADINGS NOT CONTROLLING.
Headings and titles used in this Lease are for reference purposes only and shall not be
deemed a part of this Lease.
29. ENTIRETY OF AGRCEMII NT.
This written instrument, including any documents attached hereto or incorporated herein by
reference, contains the entire understanding and agreement between Lessor and Lessee, its
assigns and successors in interest, as to the matters contained herein. Any prior or
contemporaneous oral or written agreement is hereby declared null and void to the extent in
conflict with any provisions of this Lease. The terms and conditions of this Lease shall not
be amended unless agreed to in writing by both parties and approved by the City Council of
Lessor.
Hangar and Ground Lease
Lease Site 20B
Fort Worth Spit& Airport
11agc 16 of 21
30. COUNTERPAWS.
This Agreement may be executed in one or more counterparts. Facsimile and .pdf
signatures shall be effective. An original of this Agreement shall be provided to Lessor's
Secretary's office for filing.
[Signature Pages Follow]
DUNIONT GROUP, LLC
IJangarand Ground Lease
Lcasc Sitc 20E
Mori Worth Spiuks Airport
Page 17of21
� ........-.
„stikr........ iRIK MA t JOH14S
r un,,,,. 0 N
"��Notary Public, State n! Texas
��Caft3Frt,ixptraspd-t7.2Q18
lot[, P4010(y ID 123802�0
APPROVED AS TO FORM
AND G LITY: p
By:
Paige Mebane,
Assistant City Attorney
M&C: C-28043
Date: I2/13/16
1295 Certificate No: 2016-131612
DUMONT GROUP, LLC
11mignrand Ground Lease
Lease Site20L:
Fort Worth Spinks Airport
Page 17 of21
IN WITNESS W_ HEREi OF, the parties hereto have executed this Agreement in multiples On
this the '71 day of 2016,
CITY OF FORT WORTH:
By: l"', /'�-...—....-.. Wit✓
Fernando Costa
Assistant Cs'
f/ity Manage
Date: a /.v 3 A;
STATE OF TEXAS §
COUNTY OF TARRANT
BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on
this day personally appeared Fernando Costa, known to nee to be the person whose name is
subscribed to the foxegovrg instrument, and acknowledged to me that the same was the act of the City
of Fort Worth and that he executed the same as the act of the City of Fort Worth for the purposes
and consideration therein expressed and in the capacity therein stated.
GN N UNDER MY HAND AND SEAL OF OFFICE this
f' -rr'r L, r- , 2016SIA
Notary Public' andpr.the State of Texas
day
ATTE
Y
, 66ty Secretary - VL
OFFICIAL RECORD
CITY SECI 'MAIRY
FT. WORTH, TX
LESSEE:
DUMON GRQUP PROPERTIES VI, LLC ATTEST:
By: By:
Kev'J . V4�aa;
Aff
Date:December 14, 2016
STATE OF Delaware §
COUNTY OF New Castle §
BEFORE ME, the undersigned authority, a Notary Public in and for the State of Delaware, on this
day personally appeared Kevin M. 'Wargo, known to me to be the person whose name is subscribed
to the foregoing instrument, and acknowledged to me that the same was the act of Dumont Group
Properties VX, LLC and that he executed the same as the act of Dumont Group Properties VI,
LLC for the purposes and consideration therein expressed mid in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this 14t1' dgy Peceniber 2016.
Notary Public in and for the State of Delaware
AMBER AR RIE ACts
Ti
PU
STATE OF DFIAWAg 2047
My COMM ssWn r=xOM July
DUMONT GROUP, LLC
I rangarand Cround r,case
Lease site 20E
>:ort Worth Spinks Airport
Page 19of21
EXI-HBIT A
REAL PROPERTY DESCRIPTION AND MAP
FOR
LEASE SITE 7S
D€ moirtT GRoup, u.c
Hangar and Ground Lease
Leasa Site 20E
Eorl Worth Spinks Airport
Page 20 of21
FORTWORTH
REAL PROPERTY DESCRIPTION
FOR
LEASE SITE 20E
A parcel of land lying and situated in Block 5, Dort Worth Sphrks Airport as recorded in Cabinet
A, Slide 353, Plat Records of Tarrant County, Texas, and being more particularly described by
metes and bounds as follows:
Commencing at a 1/2" iron rod found (control monument) at the northeast corner of said [clock 5
and being the northwest corner of that cocain Tract 2 called 8,789 acres as conveyed to Phoenix
Industrial Park, LLC, according to the deed recorded at Instrument No, D206319454, Deed
Records of Tarrant County, Texas;
Thence: with the common line between said Block 5 and said 'Tract 2 and generally along a chain
link fence, South 00 dcgrees 45 minutes 35 seconds West, 880.31 feet to a 5/8" iron rod with
plastic cap stamped "FT WOR'111 SURVEY DIVISION" set at the Place of Beginning ofherein
described lease:
Thence: continuing along said common line, South 00 degrees 45 minutes 35 seconds West,
392.84 feet to a 5/8" iron rod with plastic cap stamped "FT WORTH SURVEY DIVISION" set,
from which a 1/2" iron rod found at the southwest corner ofsaid'Tract 2 bears South 00 degrees
45 minutes 35 seconds West, 152.98 feet;
Thence: North 89 degrees 14 rninutes 57 seconds West, 404.07 feet to a "X" set in concrete;
"Thence: North 00 degrees 45 minutes 35 seconds East, 392.84 foot to PK nail with shiner
stamped "CFW SURVEY-DIV" set in asphalt;
Thence: South 89 degrees 14 minutes 57 seconds Fast, 404.07 feet to the Place of Beginning
containing 158,735 square feet of land, as surveyed on the ground December, 3, of 2014.
Basis of Bearings: Spinks Airport control monuments 1, 2, & 3 as shown on plat recorded in
Cabinet A, Slide 353, Plat Records of Tarrant County, Texas. Distances are ground
measurements.
Note; In accordance with the Texas Board of Professional .Land Surveying, General Rules of
Procedures and Practices, 663.19(9), this "report" consists of the hereon real property
description, and a Map of Survey being attached herewith, as prepared by Marshall Lancaster &
Associates, Inc., Firm No. 10045100,
Michael W. Callroun
Texas Registered Professional Land Surveyor, No. 6143
Date: December 9, 2014
MA16MLL LANCASTER & ASSOCIATES, INC.
CONSUL"I'ING LAND SURVEYORS
1864 NORTH NORWOOD DRIVE, SUITE E
ITURST, TEXAS, 76054
FIRM No. 10045100
TRANSPORTATION AND PUBLIC WORKS DE,PARTIV(ENT
SurtvxYrnc Senvrc>rs
Tur: Crn' ar• Fartr WO RM * 8851 CwintS R05VIC Rtvtl %S1 * Fnrtr WnaTtljF-XA% 7G116
817 342-7925 * FAx 817-392-7895
z' . 50'
wa Murt
I BLOCK 5
FORT WC= SP21M ASR70RT
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MAP OF SURVEY
SHOWING
LEASE SITE 20E
SITUATED IN BLOCK 5, 'FORT WORTH
SMI KS AIRPORT ADDITION
ACCORMI G TO PLAT RECORDED IN
CABINET A. SLIDE 353
PLAT RECORDS OF TARP—UNT COUNTY, TEXAS.
MARSNRLL UNCASTER CAS50CUYtS, fNG
=cwsucwcwmawlrn_x!
EXHIBIT B
REAL PROPERTY DESCRIPTION AND MAP
FOR
LEASE SITE 7S
Seliedule of Rates and Charges
DUNIO T GROUP, r LC
Hangar and Ground Lease
Lease S ite =
Fort «lorlh Spivks Airport
Page21 of21
Adopted by the Fort Worth City Council
August 30, 2016
M&C G-18803
TABLE OF CONTENTS
Aviation Director Authority.................................................................
ANNUAL ADJUSTMENT OF RATES AND CHARGES....... ........... ........................ ................................ 3
LANDINGFEES............................................................................................................................................3
CommercialLanding Fee.......................................................................................................................... 3
Non -Commercial Training or Maintenance Landing Fee.......................................................................... 3
Military Operations Landing Fees.............................................................................................................. 3
OFFICESPACE............................................................................................................................................4
Meacham Administration Building.............................................................................................................4
Meacham Administration Building — 3�d Floor Conference Center,..... .................. ___ .......... ...... ......... _4
Office and Other Building Space — Annually............................................................................................. 4
HANGARSPACE ................................... .................................... .............. ..,.................................................. 4
T-Hangar Space........................................................................................................................................ 5
Community Hangar Space... ..... .............................. _ ........ .......
StorageRooms.......................................................................................................................................... 5
AircraftParking - Monthly.............................................................................................................. ......6
AircraftParking — Daily..............................................................................................................................5
LANDLEASE................................................................................................................................................6
Land Per Square Foot—Annually.............................................................................................................6
FILL SITES ... ....................................................................... ............ I ...........
... 6
AIRPORT ACCESS FEES (THROUGH THE FENCE)................................................................................. 6
Alliance Airport — Access Ordinance 16931-05-2006............................................................................... 6
Meacham International and Spinks Airports.............................................................................................6
U.S. CUSTOMS FEES.......................................................................................................................... 6
AIRPORTFUEL........................................................................................................................................I...6
FuelFarm Usage Fee............................................................................................................................... 6
FuelFlowage Fees....................................................................................................................................6
MISCELLANEOUS FEES ....................... ......................... .......... ................................... ........................ ...... ., 7
LateFees...................................................................................................................................................7
Fees related to Development on an Airport (Including but not limited to Survey, Easements).................7
Official Public Records Fee Schedule.......................................................................................................7
LeaseASsignment Fee............................................................................................................................. 7
Monthto Month Leases.............................................................................................................................7
Paper Copies and Key Copy Fees............................................................................................................ 7
ADDITIONAL PROVISIONS......................................................................................................................... 8
DevelopmentApplication........................................................................................................................... 8
LeaseExpiration Penalty...........................................................................................................................8
WeightCalculations........................................................................................................................ ........8
Non -Airworthy Aircraft............................................................................................................................... 8
Fair Market Value Hangar Rate ... ................. .............. ................. .................. —....................................... ., 8
PAGE 2OF8
AVIATION DIRECTOR AUTHORITY
The Director is authorized to assess or waive tees that are not specifically addressed in the Rates and
Charges such as the use of office equipment, carports, miscellaneous construction by Department
resources, fees associated with private development and other aviation related fees and charges that may
occur on an infrequent basis.
Lessee may not undertake or allow any party to undertake any kind of alterations, erection, improvement or
other construction work on or to the premises unless it first requests and receives approval from the Director
or his/her authorized representative.
These rates and charges pertain to all Fort Worth Airports unless otherwise noted per section.
ANNUAL. ADJUSTMENT OF RATES AND CHARGES
Existing Lessee's which are subject to an annual Consumer Price Index (CPI) adjustment shall be adjusted
by three percent (2.3%) as of October 1, 2016 per their current lease agreement. Month -to -month leases will
reflect current rates and charges as described below.
LANDING FEES
COMMERCIAL LANDING FEE
A Commercial Aircraft Operation is one that
does not have a Use Agreement with the City of
Fort Worth; and conducts operations at Fort
Worth Alliance Airport under FAR Parts 121,
125, 129, 135 with a Maximum Certified Gross
Landing Weight (MCGLW) over 80,000 pounds.
No landing fee is assessed at Meacham or
Spinks Airports,
Landing Fee per 1000 pounds $1.75
Minimum Landing Fee $100.00
NON-COMMERCIAL TRAINING OR MAINTENANCE LANDING FEE
A Non -Commercial Training or Maintenance Operation is one that is operating at Fort Worth Alliance Airport
under FAR Fart 91 over 70,000 pounds MCGLW, for training or maintenance purposes; and is not involved
in any commercial activity for hire when landing. No landing fee is assessed at Meacham or Spinks Airports.
Landing Fee per 1000 pounds
Minimum Landing Fee
$1.55
$70.00
MILITARY OPERATIONS LANDING FEES
Military operations are exempt from landing fees if the aircraft is acting on the behalf of the military under the
jurisdictional control of the armed forces of the United States or the National Guard. Foreign military aircraft
are subject to rates listed above.
PAGE 3 OF 8
OFFICE SPACE
MEACHAM ADMINISTRATION BUILDING
MEACHAM ADMINISTRATION BUILDING -- 3R" FLOOR CONFERENCE CENTER
Rental Rates (4 Flour Minimum)
Tenant Room Rental (8-5 M-F)
$50.00
Tenant Room Rental (AfterhoursfWeekends)
$75.00
City Department Rental (8-5 M-F)
$250.00 �i
City department Rental (Afterhours/Weekends)
$300,00 j
Non -Tenant Rental (8-5 M-F)
$500,00 1.
Kron-Tenant Rental (Afterhours/Weekends)
$750.00
Non -Tenant Rental Deposit
$200.00
! Additional Fees (If needed)
Training Set Up (Rectangle Tables with Chairs)
$75.00
Reception Set Up (Round Tables with Chairs)
$125,00
Theater Set Up (up to 125 Chairs no tables)
$50.00
Use of Kitchen
$75.00
Clean-up Fee (8-5 M-F)
$50.00
Clean-up Fee (Afterhours Only)
.$75.00_
If the room is needed for longer than 4 hours, an additional hourly rate will be determined based on the
event. Contact the Aviation Administrative Offices at 817-392-5400 to obtain information on the rental of the
Conference Center.
OFFICE AND OTHER BUILDING SPACE — ANNUALLY
Office space rental rates are determined based on a fair market rate analysis of the commercial office space
around the airport.
Other Office Space
Shop Space
HANGAR SPACE
FMV
$ 7.00/sq.ft.
PAGE 4OF8
T-HANGAR SPACE
T-1-Iangar End Unit Space Improved $ 6.00/sq ft (Min $80.00)
T-Hangar End Unit Space Unimproved/Storage $ 80.001month
T-Hangar Space $ 375.00/month
ri Community Hangar (51S on West side of Airport) $ 350.00/month A
A discount of 10% for a twelve month period is available. An aircraft owner will need to demonstrate the
purchase of an average of 50 gallons of fuel per month for the prior 12 month period from an FBO located at
the airport upon which the aircraft is based.
COMMUNITY HANGAR SPACE
Single -engine piston $ 200.00/month
Twin -engine piston $ 32.0,001month
A discount of 10% for a twelve month period
beginning October 1, 2011 is available. An
aircraft owner will need to demonstrate a
purchase of an average of 50 gallons of fuel
per month for the prior 12 month period from
an FBO located at the airport upon which the
aircraft is based.
STORAGE ROOMS
Small Open
Large Open
Closed
AIRCRAFT PARKING MONTHLY
'12,500 lbs. and under (Meacham and Spinks)
12,500 lbs. and under (Alliance)
12,501 lbs. to 60,000 lbs.
60,001 lbs. to 100,000 lbs.
100,001 lbs. to 300,000 lbs.
300,001 lbs. and above
AIRCRAFT PARKING -- DAILY
12,500 lbs. and under (Meacham & Spinks)
12,500 lbs. and under (Alliance)
12,501 lbs. to 60,000 lbs.
60,001 lbs. to 100,000 lbs.
100,001 lbs. to 300,000 lbs.
300,001 lbs. and above
The daily rate will be applied for any parking on public aprons up to 24 hours.
$ 36.00/month
$72.00/month
$ 52.00/month
$ 55.00/month
$ 300.00
$ 600,00
$ 900.00
$ 1,800.00
$ 2,250.00
$ 8.00
$ 20.00
$ 40.00
$ 60.00
$ 120.00
$ 160m
PAGE 5 OF 8
LANE] PER SQUARE FOOT — ANNUALLY
FILL SITES
LAND LEASE
Ground Lease Alliance
j Ground Lease Meacham
Ground Lease Spinks West Side
Ground Lease Spinks East Side
$0.42/sq.fl.
$0.40/sq.ft.
$0.29/sq.ft.
$0.27/so. ft.
$4.00 per load. {{
AIRPORT ACCESS FEES (THROUGH THE FENCE)
ALLIANCE AIRPORT -- ACCESS ORDINANCE 16931-05-2006
Air carrier or large aircraft user
General aviation or small aircraft user
U.S. CUSTOMS FEES
MEACHAM INTERNATIONAL AIRPOR
$1,500.00/month
$500.00/month
Curing Regular Business Hours $300.001operation
After Hours, Weekends and Holidays $500.001operation
MEACHAM INTERNATIONAL AND SPINKS AIRPORTS
Fee is the land per square foot rate for the airport multiplied by the square footage of the hangar adjacent to
the airfield.
AIRPORT FUEL
FUEL FARM USAGE FEE
City Owned Facility (Monthly)
Self -Fueling Facility (Monthly)
All Airports $ 370.00
All Airports $ 200.00
FUEL FLOWAGE FEES
The following fuel flowage fees are established on all fuel delivered to the airports. Rates are rounded to the
nearest penny.
Fixed Based Operators (Gallons) $ 0.14/gallon
Self -Fueling (Gallons) $ 0.261gallon
PAGE 6OF8
Operators which pay a landing fee at Fort Worth Alliance Airport are exempt from the fuel flowage
fee.
Guidelines for fuel flowage are outlined In the Minimum Standards adopted as of July 22 2014.
MISCELLANEOUS FEES
LATE FEES
Monthly rentals and fees are subject to a late charge at the rate of 10% of the monthly rental rate for each
month, or portion of the month, that any monthly installment is past due. A separate computation and
payment of such late charge shall be made on the outstanding balance that is past due. Therefore, if two
monthly installments are past due, the late charges shall accrue on the total outstanding balance.
FEES RELATED TO DEVELOPMENT ON AN AIRPORT (including but not limited to Survey, Easements)
Meacham and Spinks Airport: The City of Fort Worth Aviation Department will obtain surveys on any property
approved and negotiated to move forward with development. The survey fee to be collected up front is non-
refundable and is based on Surveyor's cost estimate. Need to change to include any fees related to
development....surveys, inspections or easements.. .,but not limited to.
OFFICIAL. PUBLIC RECORDS FEE SCHEDULE
All Agreements are to be available for public record and will be filed at the Tarrant County Clerk's Office; the
fee to be collected up front, as set by the Tarrant County Clerk Fee Schedule, is as follows:
■ $15.00 for the first page
■ $4.00 for each additional page
• $5.00 Records Management Fee
• $1.00 Security Fee
• $5.00 Records Archive Fee
LEASE ASSIGNMENT FEE
Meacham and Spinks Airport: Upon approval, if a tenant assigns their right, title, and interest of their property
to another individual, a $400.00 lease assignment fee will apply.
MONTH TO MONTH LEASES
Month -to -month leases are subject to a 10% premium above the standard rate.
PAPER COPIES AND KEY COPY FEES
Black and white paper copies are $0.10 each; color copies are $0.60 each.
Replacement of lost keys or extra keys provided for rental spaces are $10.00 each.
PAGE 7 OF 8
ADDITIONAL PROVISIONS
DEVELOPMENT APPLICATION
Meacham and Spinks Airport: For any developer who wishes to enter into a ground lease with associated
mandatory improvements, a Fort Worth Aviation Department Application must be completed and submitted.
The Information submitted must Include all additional materials/documentation requested on the application.
Once staff is in receipt of the complete packet, staff will begin the review process to determine if the proposal
is in the best interest of the Airport. The initial review process will not commence until all requested materials
are submitted.
LEASE EXPIRATION PENALTY
Any lease agreement that expires prior to the execution of a renewal lease where the tenant had at least 30
days to execute a new lease prior to the expiration of the existing lease shall be subject to a Lease
Expiration Penalty.
Such agreement will automatically revert to a month -to -month occupancy status and the tenant may be
required to pay a premium equal to 10% of the standard base rental rate in addition to the standard base
rental rate, until such time as either a permanent lease is executed or the tenant vacates the premises.
WEIGHT CALCULATIONS
All weight calculations are based on Maximum Certified Gross Landing Weight.
NON -AIRWORTHY AIRCRAFT
Non -airworthy aircraft are defined as any aircraft not in a condition for safe operation with the following
exceptions:
• Aircraft undergoing and/or awaiting service by certified repair technicians for a period not to exceed
90 calendar days
• Aircraft on static display in designated areas by a recognized non-profit organization for the purpose
of a museum
Aircraft considered non -airworthy are subject to removal, impoundment, and disposal by the airport operator
with a 30 day written notice and at the owner's expense.
FAIR MARKET VALUE HANGAR RATE
• Current Tenant - New Lease following end of existing Lease Term At such time as a tenant with an
existing lease agreement wishes to continue occupancy of the facilities, beyond the original term of the
lease with extensions, the tenant may enter into a new lease agreement. The term of the lease must not
exceed forty years including all extensions.
When a new lease agreement is negotiated, the rates for the agreement will be determined based upon
the City of Fort Worth Schedule of Rates and Charges. If a rental rate is not established in the Schedule
of Rates and Charges then the rate shall be negotiated and consider the rental value of subject property
and improvements.
Current Tenant - New Lease prior to the end of existing Lease Term If an existing tenant wishes to
execute a new lease agreement prior to the end of their current lease the tenant may do so with the
rental rates determined as follows:
1. Period prior to end of the current lease may be set at the rental rate of the current lease agreement.
2. Period after the end of the current lease shall be negotiated and consider the rental value of subject
property and improvements.
3. Total term of the new lease shall be negotiated.
• New Tenant - New Lease for existing Building and Improvements tease agreements for existing
buildings shall be based upon the City of Fort Worth Schedule of Rates and Charges. If a rental rate is
not established in the Schedule of Rates and Charges then the rate shall be negotiated and consider the
rental value of subject property and improvements. The City of Fort Worth may also choose to
determine the rental rate based upon a bidding process Involving parties interested in leasing the
property.
PAGE 8OF8
EXHIBIT C
REAL PROPERTY DESCIZIPTIOIV AND MAP
FOR
LEASE SITE 7S
Insurance Ilea. ircinents
DUMONT GROUP, MC
Ifangaraitd Ground Lease
ixase Site 20L
fort Worth Spinks Airport
Page 21 or21
t''iiRTWO RTH
AVIA'110N
EXHIBIT C - MINIMUM
INSURANCE
REQUIREMENTS
Category
Properly
Commercial
General
Environmental
Hangarkeepers Impairment
Aircraft and Passenger
Automobile Liability (To
Include Hired & Non -owned
Insurance
Liability
Liability Liability
Liability
Vehiclees) S
Fixed Base Operators (FBOs)
Yes
$5,000,000
$5,000,000 $1,000,000
$
1,000,000
Aircraft Maintenance Operator and
Avionics or Instrument Maintenance
•s
$1,000,000
$1,000,000
$
1,000.000
Operator -Piston
Aircraft Maintenance Operator and
Avionics or Instrument Maintenance
•s
$5,000.000
$1,000,000
$
1,000,000
Operator -Turbine
Avionics or Instrument Maintenance
'5
$1,000,000
$
1,000,000
Operator (Bench work Only)
Atrcrafl Rental or Flight Training
a
$1,000,000 2
$1,000,000/occurrence
s
0,000
Operator
.s
$100,0001passenger
Aircraft Charter or Aircraft
'S
$1,000,000
$5,000,000/occurrence
1,000,000
Management Operator
,5
$500,000/passenger
(Aircraft Sates Operator
5
$1,000,000
$1,000,0001occurrence
$
1,000,000
•s
$i OO,pp0lpassenge€
•5
$1,000,000
$1,000,000
Aircraft Storage Operator
'S
$5,000,000 a
$5,000,000 a
$
1,000,000
Aviation Service Sole Proprietor
'S
$1,000,000 2
$1,000,000/occurrence
$100,000/passenger
$
250,000
Other Commercial Aeronautical
$1,000,000
$300,000/occurrence
$
1,000,000
Activities
Temporary Specialized Aviation
$1.000,000
$300,0001occurrence
$
1,000,000
Service Operator
Non -Commercial Hangar Lessee
'5
$300,000/occurrence
$
1,000,000
Non-Commerciat Flying Club
•5
$i,000,0001occurrence
$100,0001passenger
$
1 000 000
Non -Commercial Sett -Fueling
$
$ 1,000,000
$1,000,000
$300,0001occurrence
$
1,000,000
Permltee {Jet Fuel and/or Avaas
Non -Commercial Self -Fueling
Permltee
'3
$500,000
$300,0001occurrence
$
250,001)
(Alternative Fuels e.4. moctas)
T-Hangar or Community Hangar
a
$300,000loccurrence
$
260,000
Other 'Insurance requirements subject to determination by Aviation Department and Risk Management.
Additional Insurance Requirements
-Lessee's policies are to be primary to any other valid and collectible insurance available to the City
-All policies shall include a Waiver of Subrogalton In favor of the City (Temporary SASO must also Include Airport Lessee)
-The City of Fort Worth shall be named as Additional Insured (Temporary SASO must also include Airport Lessee)
Policies shall have no exclusions by endorsement, which , neither nullify or amend the required lines of coverage, nor decrease the limits of said coverage
1 Coverage per aircraft should be equivalent to the average aircraft value at one time and coverage per occurrence should be equivalent to the average of the
maximum value of total aircraft at one time, but not less Ulan the amount noted above
2 ]Must include Negligent lnstructton Coverage
3 It aircraft storage operator is providing subleasing space for aircraft storage
4 Only required for those providing flight Instruction
5 Depends on terms of the lease agreement
6 If vehicle parked landside - State minimums would apply _
JAvlatioa Minimum Standards, City of Fort Worih Aviation Department (06103/2014)
PROPERTY INSURANCE
DEFINITIONS:
Coverage for the Building includes (but is not limited to) the building and structures, completed additions to covered
buildings, outdoor fixtures, permanently installed fixtures, machinery and equipment, The building material used to
maintain and service the insured's premises is also insured. Business Personal Property owned by the insured and
used in the insured's business is covered for direct loss or damage. The coverage includes (but is not limited to)
furniture and fixtures, stock, improvements and betterments, leased property for which you have a contractual
obligation to Insure and several other similar business property items when not specifically excluded from coverage.
The policy is also designed to protect the insured against loss or damage to the Personal Property of Others while
in the insured's care, custody and control.
Business Income (sometimes called Business Interruption) affords protection against the loss of earnings of a
business during the time required to rebuild or repair covered properly damaged or destroyed by fire or some other
insured cause of loss.
Extra Expense allows coverage for those additional expenses over and above normal operating expenses paid due
to damage to covered property from a covered cause of loss. These expenses could include rent, utilities, moving
expenses, telephone, advertising and labor.
This coverage protects tho insured for bodily injury or propor€y damage to the third parties, for which they are legally
liable. The policy covers accidents occurring on the premises or away from the premises. Coverage is provided for
injury or damages arising out of goods or products made or sold by the named insured. Coverage is afforded for
the named insured and employees of the named insured; however, several individuals and organizations other than
the named insured may be covered depending upon certain circumstances specified in the policy. In addition to the
limits, the policy provides supplemental payments for attorney fees, court costs and other expenses associated with
a claim or the defense of a liability suit.
Coverage A - Bodily Injury and Property Damage Liability
COMMERCIAL. GENERAL. Bodily Injury means physical injury, sickness or disease, including death. Property Damage means physical injury
LIABILITY to tangible property, including the resulting loss of use of that property.
Coverage B - Personal Injury and Advertising Injury Liability
Personal Injury means false arrest, maticicus prosecution, wrongful entry or eviction, libel, slander and violations of
a person's right of privacy. Advertising lnjury means libel, slander, disparagement, violations of a person's right of
privacy, misappropriation and copyright infringement.
Coverage C - Medical Payments
Medical Payments means medical expenses for bodily injury caused by an accident.
IIANGARI<EI3PL'RS Insures the hanger operator for legal obligations to pay damages due to loss to an aircraft that occurs when the
aircraft is in the care, custody or control of the insured for safekeeping, storage, service or repair. Coverage
LIABILITY extends to liability claims involving an aircraft's lass of use,
Insures the pollution exposure associated with the insured's property and operations, Including costs of cleanup and
remedial or corrective action due to a third -party demand or a government order. The Pollution exclusion in general
ENVIROMENTAL liability insurance effectively eliminates coverage for damages for bodily injury, property damage and cleanup costs
IMPIRMENT` LIABILITY arising from most types of pollution events. Because of this, customized protection for the pollution exposure of
numerous insureds in this category is essential.
Coverage geared specifically to the operation of aircraft and the risks involved in aviation. Aviation insurance
policies are distinctly different from those for other areas of transportation and tend to incorporate aviation
AIRCRAFT' AND terminology, as wall as terminology, limits and clauses specific to aviation insurance. Passenger liability protects
PASSENGER LIABILPIY passengers riding in [fie accident aircraft who are Injured or killed, in many countries this coverage is mandatory
only for commercial or large aircraft. Coverage is often sold on a "per -seat" basis, with a specified limit for each
passenger seat.
The liability coverage of the Business Auto Policy provides protcction against legal' liability arising out of the
AUTOMOBILE LIABILITY ownership, maintenance or use of any insured automobile. The insuring agreement agrees to pay for bodily injury
(TO INCLUDE HIRED & or property damage for which the insured is legally responsible because of an automobile accident. The policy also
NON -OWNED VEHICLES) states that, in addition to the payment of damages, the insurer also agrees to defend the insured for all legal
defense cost. The defense is in addition to the policy limits.
WAIVER OF An agreement between two parties in which one party agrees to waive subrogation rights against another in the
event of a loss. The intent is to prevent one party's insurer from pursuing subrogation against the other party.
SU13ROGATION
Aviation Mininmm Standards, City of Fort Worth Aviation Department (0610312014)
M&C Review
Page t of 2
CITY COUNCIL AGENDA
COUNCIL ACTION: Approved on 1211312016
Official site of the City of Fort Worth, Texas
FORT WORTH
DATE: 12/13/2016 REFERENCE "C-28043 LOG NAME: 55FWS TERMNEWONE
NO.: GRNDHGRLEASEDUMONT
CODE: C TYPE: CONSENT PUBLIC NO
HEARING:
SUBJECT: Authorize Execution of a Termination Agreement with Newone Hangars, LLC and
Execute a New Hangar and Ground Lease Agreement with Dumont Group, LLC for
Lease Site E20 at Fort Worth Spinks Airport (COUNCIL DISTRICT 6)
RECOMMENDATION:
It is recommended that the City Council authorize execution of a Termination Agreement with
Newone Hangars, LLC and execute a Hangar and Ground Lease Agreement with Dumont Group,
LLC for Lease Site E20 at Fort Worth Spinks Airport.
DISCUSSION:
On August 28, 2007, by Mayor and Council Communication (M&C C-22344), City Council approved
City Secretary Contract (CSC) 35803, an Unimproved Ground Lease Agreement with Newone
Hangars, LLC (Newone), for Lease Site E20 at Fort Worth Spinks Airport, The Lease expires on July
31, 2037.
On January 24, 2012, (M&C C-25415), City Council approved CSC-36803-Al to amend the
Unimproved Ground Lease Agreement to increase the total square feet from 79,600 to 158,735 total
square feet.
On January 23, 2015 the City of Fort Worth (City) executed a Consent to Assignment (CSC 35803-
CA1), from Newone to Art Aero, LLC (Art Aero), for Lease Site E20.
On October 2, 2015 the City of Fort Worth terminated the Consent to Assignment (CSC 35803-CA1),
from Newone to Art Aero, for Lease Site E20.
Dumont Group, LLC (Dumont) approached Newone Hangars, LLC (Newone) to purchase the
leasehold interest of Lease Site E20. Newone has agreed to the purchase and has requested to
terminate the current Unimproved Ground Lease Agreement.
The Lease Site is comprised of 158,735 square feet of ground space and includes a 51,300 square
feet hangar facility. The term of Hangar and Ground Lease is 40 years beginning January 1, 2017
and expiring December 31, 2056. At the current ground rate of $.27 per square foot per year, Lease
Site E20 will generate estimated revenue of $42,858.45 per year or $3,671.54 per month. At year 32,
a hangar rate will be included with the then current ground rate. The hangar rate will equal the then
Fair Market Value, as determined by the City' s market analysis. In no case shall the hangar rate be
less than the value assessed upon completion of a property appraisal completed by a third party
vendor that has been approved and secured by the City.
Rental rates shall be subject to an increase on October 1st of any given year, based on the upward
percentage change in the Consumer Price Index for the Dallas -Fort Worth Metropolitan area. At no
time will the adjusted rate exceed the rate that is current in the Schedule of Rates and Charges. Five-
year rate adjustments will be applied to the ground rate starting on October 1, 2022 and every fifth
year thereafter.
littp:llapps.efwilet.org/council_packetline review.asp?TD=24086&councildate=l2/13/2016 12/27/2016
M&C Review Page 2 of 2
Fort Worth Spinks Airport is located in COUNCIL DISTRICT 6.
FISCAL INFORMATIONXERTIFICATION:
The Director of Finance certifies that the Aviation Department is responsible for the collection and
deposit of funds due to (tie City. Upon receipt, these funds will he deposited into the Municipal
Airports Fund, Hangar Lease Revenue Account, which has total estimated revenue in Fiscal Year
2017 of $1,126,105.00 and year-to-date receipts of $96,110.47. The Land Lease Revenue Account,
which has total estimated revenue in Fiscal Year 2017 of $1,694,578.00 and year-to-date receipts of
$156,765.82.
TO
)Fund Department Account Project Activity Budget Reference # Amount
I ID I I ID II IProgram Year (Chartfield 2)
FROM
Fund department Account Project Program Activity Budget Reference # I Amount
I ID I I ID I 1 I Year (Charttield2)
Submitted for Citv Manaaer`s Office by
Oriainatina Department Head:
Additional Information Contact:
Fernando Costa (6122)
Bill Welstead (5402)
Aaron Barth (5434)
Anne -Marie Stowe (5415)
ATTACHMENTS
Form 1295 Dumont Groua.pdf
Form 1295 Newonexdf
MAP 55FWS TERMNEWONE GRNDHGRLEASEDUMONT .pdf
http://apl)s.cfwnet.orgleouncil packet/me review.asp`?ID=24086&councildate=12/13/2016 12/27/2016