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Home My WebLink AboutContract 62875-A1CSC No. 62875-A1 FIRST AMENDMENT TO THE FACILITIES LEASE AGREEMENT BETWEEN THE CITY OF FORT WORTH AND AVX AIRCRAFT COM ANY This First Amendment to the Facilities Lease Agreement ("First Amendment") is made and entered into between the City of Fort Worth, a Texas home -rule municipal corporation ("Landlord"), acting by and through Valerie Washington, its duly authorized Assistant City Manager, and AVX Aircraft Company, a U.S. for -profit corporation ("Tenant"), acting by and through Don L. Taylor, its duly authorized Chairman and Interim Chief Executive Officer. RECITALS WHEREAS, effective February 27th, 2025, Landlord and Tenant executed a certain Facilities Lease Agreement (City Secretary Contract No. 62875) (the "Lease") to allow Tenant to lease approximately 4,320 square feet of space on the first floor of the Controlled Materials Storage Building #3 located at the Alliance Fort Worth Maintenance Base; WHEREAS, the Lease expiration date is currently February 26th, 2028; and WHEREAS, Tenant requests and Landlord agrees to amend the Lease to add up to three (3) renewal terms of the duration of three (3) years each to the Term of the Lease. NOW THEREFORE, in consideration of the terms set forth in this First Amendment, the parties agree to amend the Lease as follows: 1. Article II, Section 2.1 of the Lease is hereby amended to add the following Section 2.1(c) and Section 2.1(d): (c) Renewal Term. Tenant shall have the right and option to renew the Term up to three (3) consecutive times and each time for a period of three (3) years (each a "Renewal Term") upon approval by Landlord. Tenant must provide Landlord written notice at least ninety (90) days prior to the expiration of the Term or then -current Renewal Term that Tenant wishes to exercise its option to enter into a Renewal Term. If Tenant fails to provide Landlord with its notice within the ninety (90) day period, then Tenant forfeits its option to renew the Lease. Landlord's approval of the Renewal Term is contingent upon the following: (i) There is not then an Event of Default by Tenant beyond any applicable notice and cure period provided for herein at the time Tenant provides notice of its intention to renew; First Amendment to City Secretary Contract No. 62875 OFFICIAL RECORD CITY SECRETARY I FT. WORTH, TX (ii) No event has occurred that upon notice or the passage of time would constitute an Event of Default; and (iii) Tenant is occupying the Leased Premises and is in compliance with all terms and conditions of this Lease. Following the expiration of the third Renewal Term, Tenant shall have no further right or option to renew the Lease unless otherwise agreed to by the parties. (d) Renewal Term Gross Rent. The Gross rent during any Renewal Term shall be based upon the then -current, fair market value and shall increase at the beginning of each year of a Renewal Term. The Renewal Term Gross Rent shall be negotiated in good faith, and in the event the parties cannot reach an agreement, then the fair market rent rate shall be determined as follows: Landlord and Tenant shall each appoint an independent real estate appraiser with an MAI designation, at least ten (10) years' commercial real estate appraisal experience in the area market, and experience appraising leaseholds for similarly situated industrial facilities. The two appraisers shall then, within ten (10) days after their designation, select an independent third appraiser with like qualifications. Within twenty (20) business days after the selection of the third appraiser, a majority of the appraisers shall determine the fair market rental rate. If a majority of the appraisers are unable to agree upon the fair market rental rate by such time, then the two (2) closest appraisals shall be averaged and the average will be the fair market rental rate. Tenant and Landlord shall each bear the entire cost of the appraiser selected by it and shall share equally the cost of the third appraiser. 2. Article XIII, Section 13.3 of the Lease is hereby amended by adding the following provision: On or before February 1st of each year of the Term, Tenant shall provide to Landlord certificates of insurance evidencing the insurance coverage required under this Lease. Landlord reserves the right to require complete, certified copies of all required insurance policies at any time during the Term of the Lease and failure to provide such documentation may be considered an event of default under Section 17.1(b) of the Lease. All other terms and conditions of the Lease that are not expressly amended herein shall remain in full force and effect. (Signatures Appear on Following Page) First Amendment to City Secretary Contract No. 62875 2 EXECUTED this 13th day of August LANDLORD: CITY OF FORT WORTH Valerie Washington Aug 13,202515:55:11CDT) Valerie Washington Assistant City Manager Approved By: Marilyn Marvin Director, Property Management Department , 2025. TENANT: AVX AIRCRAFT COMPANY Do„„ Digitally signed by Don L. Taylor 1 1 Taylor Date: 2025.06.16 08:51:54-05'00' Don L. Taylor Chairman & Interim Chief Executive Officer Date: 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. %►1E&&k,) Mark Br n(Aug 13,202508:56:06 CDT) Mark Brown Lease Manager APPROVED AS TO FORM AND LEGALITY: Candace Paglias(Aug 13,22561 �T) Candace Pagliara a'� � pORtll,9dd Od do ATTEST: A � ddb nEooS�4a Jannette S. Goodall City Secretary Contract Authorization: Form 1295: 2025-1328732 M&C: 25-0693 First Amendment to City Secretary Contract No. 62875 3 OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX M&C Review CITY COUNCIL AGENDA Create New From This M&C DATE: 8/12/2025 REFERENCE **M&C 25- LOG NAME: NO.: 0693 CODE: C TYPE: CONSENT PUBLIC HEARING: 21AVX AIRCRAFT FIRST AMENDMENT NO SUBJECT: (CD 10) Authorize Execution of a First Amendment to the Facilities Lease Agreement with AVX Aircraft Company Located at the Alliance Fort Worth Maintenance Facility to Revise the Lease Term to Add Three (3) Successive Three (3) Year Renewal Periods RECOMMENDATION: It is recommended that the City Council authorize the execution of a first amendment to the Facilities Lease Agreement with AVX Aircraft Company located at the Alliance Fort Worth Maintenance Facility to revise the lease term to add three (3) successive three (3) year renewal periods. DISCUSSION: On February 27, 2025, the City of Fort Worth (City) executed a Facilities Lease Agreement with AVX Aircraft Company (AVX) (City Secretary Contract No. 62875) to lease approximately 4,320 square feet of space on the first floor of the Controlled Material Storage Building #3 located at 2008 Eagle Parkway, Fort Worth, Texas 76177 at the Alliance Fort Worth Maintenance Facility (the Lease). The Lease expiration date is February 26, 2028. The City's Property Management Department and AVX have agreed to amend the Lease to allow up to three (3) successive renewal periods, where each renewal period is three (3) years. Each renewal period is subject to the following: AVX must provide written notice of its intention to exercise each renewal period at least ninety (90) days prior to the expiration of the then -current term; City must approve each renewal period request; and Gross rent paid by AVX during any renewal period will be based upon then -current, fair market value and shall provide for an annual rental rate escalation option. This property is located in Council District 10. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that upon approval of the above recommendation and execution of the first amendment to the Facilities Lease Agreement, funds will be deposited into the Alliance Maintenance Facility Fund. The Property Management Department (and Financial Management Services) is responsible for the collection and deposit of funds due to the City. TO Fund Department Account Project Program Activity Budget Reference # Amount ID ID Year (Chartfield 2) FoRTWORTII FROM http://apps.cfwnet.org/council_packet/mc_review.asp?ID=33553&councildate=8/12/2025[8/13/2025 8:18:11 AM] M&C Review Fund Department Account Project Program Activity Budget Reference # ID ID Year (Chartfield 2) Submitted for Citv Manaaer's Office bv: Valerie Washington (6199) Oriainatina Department Head: Marilyn Marvin (7708) Additional Information Contact: Mark Brown (5197) ATTACHMENTS 21AVX AIRCRAFT FIRST AMENDMENT 6.25.2025.xlsx (CFW Internal) Form 1295 Certificate 101388880 (2).Ddf (CFW Internal) M&C Man - First Amendment AVX.odf (CFW Internal) Amount http://apps.cfwnet.org/council_packet/mc_review.asp?ID=33553&councildate=8/12/2025[8/13/2025 8:18:11 AM]