HomeMy WebLinkAboutContract 29135 CST Y S ECRETARY
C'""OVFRACT NO
FORT WORTH MEACHAM INTERNATIONAL AIRPORT
IMPROVED AND UNIMPROVED GROUND LEASE AGREEMENT
WITH MANDATORY IMPROVEMENTS
(LEASE SITES NO. 5-N,6-N, 7-N,8-N,9-N AND 10-N)
This IMPROVED AND UNIMPROVED GROUND LEASE 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 Sate of Texas acting by and through Marc Ott,
its duly authorized Assistant City Manager, and MEACHAM DEVELOPMENT, LLC ("Lessee"),
a Texas limited liability company, acting by and through Robert M. McMurrey, its duly authorized
Manager.
In consideration of the mutual covenants, promises and obligations contained herein, the
parties agree as follows:
1. TERMINATION OF CSC NO. 23406.
CSC No. 23406 shall terminate simultaneously upon the execution of this Lease.
2. PROPERTY LEASED.
Lessor hereby demises to Lessee 51,881 square feet of improved land and 277,728 square
feet of unimproved land known as Lease Sites 5-N, 6-N, 7-N, 8-N, 9-N and 10-N at Fort Worth
Meacham International Airport ("Airport") in Fort Worth, Tarrant County, Texas ("Premises"), as
shown in Exhibit "A"., attached hereto and hereby made a part of this Lease for all purposes.
Because the hangars and certain pavement and/or asphalt on the Premises existing on the Premises as
of the Effective Date hereof are slated for demolition during the Initial Term (as defined in Section
3.1 hereof), pursuant to and in accordance with Section 8.1 of this Lease, the portion of the Premises
on which such demolition is to occur shall be deemed unimproved land for purposes of this Lease.
3. TERM OF LEASE.
3.1. Initial Term.
The "Initial Term" of this Lease shall commence on the date of its execution
("Effective Date") and expire at H-.59 13,M, on Septerribei 30, 2033, unless terminated
earlier as provided herein.
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3.2 Renewals.
If Lessee substantially performs and abides by all material provisions and conditions
of this Lease, upon expiration of the Initial Term of this Lease, Lessee shall have two (2)
consecutive rights of first refusal to renew this Lease for two (2) additional successive terms
of five (5) years each (each a "Renewal Term") at rental rates for unimproved land at the
Airport which, on the effective date of a Renewal Term, complies with Lessor's then-current
Schedule of Rates and Charges or similarly published schedule, and on terms and conditions
that may be prescribed by Lessor at the time; provided, however, that if Lessee does not
renew this Lease in writing for a first Renewal Term, Lessee will forgo its right of first refusal
to lease the Premises for a second Renewal Term. In order to exercise its rights of first refusal
to renew this Lease, Lessee shall notify Lessor in writing of its desire to renew this Lease no
less than one hundred twenty (120) days and no more than one hundred eighty (180) days
prior to the expiration of the term then in effect.
3.3. 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
for aircraft hangars.
4. RENT.
4.1. Initial Monthly Rent for Premises.
From the Effective Date of this Lease until September 30, 2004, Lessee shall pay
Lessor monthly rent for the Premises based on an annual rate of$0.23 per square foot for
51,881 square feet of improved land ($11,932.63 per year) and $0.20 per square foot for
277,728 square feet of improved land ($55,545.60 per year), for total annual rent of
$67,478.23, or $5,623.19 per month. In the event that that the Effective Date of this Lease is
a day other than the first (1st) day of a respective month, the first month's rental payment
shall be prorated in accordance with the number of days remaining in that month. Prior to the
commencement of this Lease, Lessee shall pay one(1) full month's rent in advance.
4.2. Annual Rent Adjustments.
On October 1, 2003 and on October I of each year thereafter throughout the Initial
Term, Lessee's rental rates shall be subject to increase by Lessor to reflect the upward
percentage change, if any, in the Consumer Price Index for the Dallas/Fort Worth
Metropolitan Area, as announced by the United States Department of Labor or successor
index and/or agency during the immediately preceding twelve-month period ("CPI
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Change") (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 (each an "Annual Rent
Adjustment"); provided, however, that Lessee's rental rates for the Premises shall not exceed
the then-current rates prescribed by the Schedule of Rates and Charges for unimproved land
at the Airport. If there is no CPI Change or the CPI Change is downward, the rental rate for
the Premises shall remain constant until the following October I st. In no event shall the rental
rate for the Premises ever be adjusted downward.
4.3. Five-Year Adiustments.
In addition to the Annual Rent Adjustments, on October 1, 2009, and every five (5)
years thereafter for the remainder of the Initial Term (i.e. on October I of 2014, 2019, 2024
and 2029), rent for the Premises shall automatically be adjuste3d to equal the then-current
rates prescribed by the Schedule of Rates and Charges for unimproved land at the Airport.
4.4. Payment Dates and Late Fees.
Monthly rent payments are due on or before the first (1st) day of each month.
Payments must be received during normal working hours by the due date at the location for
Lessor's Revenue Office set forth in Section 17. Rent shall be considered past due if Lessor
has not received full payment after 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.
5. UTILITIES.
Lessee, at Lessee's sole cost and expense, shall be responsible for the installation and use of all
utilities service to all portions of the Premises and for all other related utilities 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, installation, maintenance or repair of any
and all utilities serving the Premises, including, but not limited to, water, sanitary sewer, electric, gas
and telephone utilities.
6. MAINTENANCE AND REPAIRS.
6.1. Maintenance and Repairs by Lessee.
Except for periods during which Lessee is constructing hangar and other related
facilities in accordance with Section 8.1 hereof, Lessee agrees to keep and maintain the
Premises in a good, clean and sanitary condition at all times. Except for the demolition of the
existing hangar facilities, Lessee covenants and agrees that it will not make or suffer any
waste of the Premises. Lessee will, at Lessee's sole cost and expense, make all repairs
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necessary to prevent the deterioration in condition or value of all Required Improvements (as
defined in Section 8.1 hereof) and Discretionary Improvements (as defined in Section 8.2
hereoO constructed and/or installed the Premises, including, but not limited to, the
maintenance of and repairs to all structures, including, but not limited to, doors,windows and
roofs, and all fixtures, equipment, modifications and pavement on the Premises. Lessee
agrees that, except as otherwise expressly provided herein, all improvements, trade fixtures,
furnishings, equipment and other personal property of every kind or description which may at
any time 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.
6.2. Inspection.
6.2.1. 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 during Lessee's ordinary business hours and shall use its best efforts to
provide Lessee at least two(2) business days' notice prior to inspection.
63.2. If Lessor determines 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) calendar 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, perform such maintenance or repairs on behalf of
Lessee. In this event, Lessee will reimburse Lessor for the cost of the maintenance or
repairs, and such reimbursement will be due on the date of Lessee's next monthly rent
payment following completion of the maintenance or repairs.
6.3.3. 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. In
addition, Lessor may without additional legal recourse remove from the Premises any
materials or personal property that are reasonably deemed to be hazardous or of
immediate threat to the public safety, health and welfare.
6.3.4. Lessee will pen-nit 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 Fort Worth Fire Code and Building Code provisions
regarding fire safety, as such provisions exist or may hereafter be amended. Lessee
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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.
6.4. Environmental Remediation.
Lessee agrees that it has inspected the Premises and is fully advised of its own rights
without reliance upon any representation made by Lessor concerning the environmental
condition of the Premises. Lessor hereby agrees to abate (i) the asbestos existing on the
Premises as of the Effective Date and (ii) any environmental liability related to the painting
business previously existing in Hangar 6-N, all as more specifically provided in Exhibit "B",
subject to the good faith negotiation and agreement by Lessor and Lessee as to the terms and
conditions of such Exhibit "B" and which Exhibit"B", once agreed to by Lessor and Lessee,
will be attached hereto and made a part of this Lease for all purposes. Subject to the
foregoing, LESSEE, AT ITS SOLE COST AND EXPENSE, AGREES THAT IT SHALL
BE FULLY RESPONSIBLE FOR THE REMEDIA TION OF ANY VIOLATION OF
ANY APPLICABLE FEDERAL, STATE OR LOCAL ENVIRONMENTAL
REGULATIONS OR STANDARDS THAT IS CAUSED BY LESSEE, ITS OFFICERS,
AGENTS, SERVANTS, EMPLOYEES, CONTRACTORS, SUBCONTRACTORS OR
INVITEES. Lessor shall be responsible for the remediation of any violation of any applicable
federal, state or local environmental regulations that is caused by Lessor, its officers, agents,
servants, employees and former tenants. For any violation of any applicable federal, state or
local environmental regulations that is caused by a contractor of Lessor (other than Lessee), a
subcontractor, prior tenant or other third party, Lessor shall be responsible for the remediation
of the same or shall take all necessary steps to ensure that the person or entity causing such
violation remediates the same.
7. DAMAGE OR DESTRUCTION TO PREMISES.
In the event of fire or other casualty which damages or destroys all or any part of the
Premises, the f01l0Wit1g provisions shall apply:
7.1. Coverage by Lessee's Insurance.
Lessee's property insurance, as required by Section 1.2.1 of this Lease, shall be
primary to any insurance on the Premises carried by Lessor and shall be used exclusively to
repair or rebuild the damaged or destroyed portions of the Premises. Lessee shall be
responsible f or oversight of all repairs or reconstruction on and to the Premises and shall
repair or rebuild the cian-na2ed or destroyed POI-LIOI-)S Of the Prcii-uses to the size and standards
that meet or exceed the size and standards of such portions of the Premises prior to the
damage or destruction. All repair and reconstruction activities carried out by or on behalf of
Lessee shall be conducted in accordance with Sections 8.2 through 8.7 of this Lease.
7.2. Premises Uninsured or Underinsured by Lessee.
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If Lessee fails to carry adequate property insurance in accordance with Section 12.1 of
this Lease, Lessor, at Lessor's sole option, may (i) terminate this Lease upon thirty(30) days'
advance written notice to Lessee or (ii) repair or rebuild the Premises substantially to its
former condition at Lessor's own cost and expense. If Lessor notifies Lessee in writing
within thirty (30) days following the date of damage or destruction that Lessor intends to
undertake the necessary repairs or reconstruction, and the damage or destruction does not
render the affected portion of the Premises untenable, this Lease shall continue in effect
without any rent abatement whatsoever so long as Lessor diligently commences the repairs or
reconstruction within one hundred eighty (180) days from the date of the damage or
destruction. If the damage or destruction does render the affected portion of the Premises
temporarily untenable, or Lessor does not commence the repairs or reconstruction within one
hundred eighty (180) days from the date of the damage or destruction, then for the period of
time between such date and the date a certificate of occupancy is issued for the portion of the
Premises that was rendered untenable, rent shall be proportionally reduced by the amount of
square footage rendered untenable. Upon the issuance of a certificate of occupancy and
thereafter, rent shall comply with the Schedule of Rates and Charges in effect at the time as
they apply to the Premises as improved by Lessor. In other words, if Lessee was paying an
unimproved ground rate and, pursuant to this Section 6.2, Lessor repaired or rebuilt an
aircraft hangar originally constructed by Lessee, then the subsequent rental rate would not be
that for unimproved land, but rather that which applied to similar hangar space at the Airport
at the time.
8. CONSTRUCTION AND IMPROVEMENTS.
8.1. Mandatory Improvements.
Lessee covenants and agrees that it shall improve the Premises substantially in
accordance with the time frames, milestones, specifications and other conditions of Exhibit
"C", attached hereto and made a part of this Lease for all purposes, as well as in accordance
with the milestones set forth in Section 16.2 of this Lease. Such improvements shall
hereinafter be referred to as "Mandatory Improvements". Lessee shall fully comply with all
provisions of this Section 8 in the performance of any such Mandatory Improvements. In the
event that Lessee requests any changes to Exhibit "C" and Lessor approves such changes in
writing, a revised Exhibit"C" signed by both Lessor and Lessee shall be attached to and made
a part of this Lease. Lessor shall take full tide to the Mandatory Improvements upon the
expiration or earlier termination of this Lease.
8.2. Discretionary Improvements.
Lessee may, at its sole discretion, perform modifications, renovations or
improvements on the Premises in addition to those required by Section 8.1 (collectively,
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"Discretionary Improvements") so long as it first submits all plans, specifications and
estimates for the costs of the proposed work in writing and also requests and receives in
writing approval from the Aviation Department Director or authorized representative. Lessee
covenants and agrees that it shall fully comply with all provisions of this Section 8 in the
performance of any such Discretionary Improvements. Lessor shall take full title to any
Discretionary Improvements upon the expiration or earlier termination of this Lease.
8.3. Process for Approval of Plans.
Lessee's plans for any Mandatory and Discretionary Improvements shall conform
with the Airport's architectural standards and must also receive written approval from
Lessor's Departments of Development, Engineering and Transportation/Public Works. All
plans, specifications and work shall conform to all federal, state and local laws, ordinances,
rules and regulations in force at the time that the plans are presented for review.
8.4. Documents.
Lessee shall supply the Director with comprehensive sets of documentation relative to
any Mandatory or Discretionary Improvement, including, at a minimum, as-built drawings of
each project. As-built drawings shall be new drawings or redline changes to drawings
previously provided to the Director. Lessee shall Supply the textual documentation in
computer format as requested by Lessor.
8.5. Bonds Required of Lessee.
Prior to the commencement of any Mandatory or Discretionary 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 (1) satisfactory compliance by Lessee with all
requirements, terms and conditions of this Lease, including, but not limited to, the satisfactory
completion of the Mandatory or Discretionary Improvements, and (ii) full payments to all
persons, firms, corporations or other entities with whom Lessee has a direct relationship for
the performance of such Mandatory or Discretionary 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 acid accepiable to Lessor. The interest earned on the certificate ot'deposit shall be
the property of Lessee and Lessor shall have no rights in such interest. If Lessee fails to
complete the respective modifications, renovations, construction projects or improvements, or
if claims are filed by third parties on grounds relating to such modifications, renovations,
construction projects or improvements, Lessor shall be entitled to draw down the full amount
of Lessee's cash deposit or certificate of deposit.
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8.6. Bonds Required of Lessee's Contractors.
Prior to the commencement of any Mandatory or Discretionary Improvement,
Lessee's respective contractor shall execute and deliver to Lessee surety performance and
payment bonds in accordance with the Texas Government Code, Chapter 2253, as amended,
to cover the costs of all work performed under such contractor's contract for such Mandatory
or Discretionary Improvements. Lessee shall provide Lessor with copies of such bonds prior
to the commencement of such Mandatory or Discretionary Improvements. 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 the City and (ii) fill] 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 name to both Lessor and Lessee
as dual obligees. If Lessee serves as its own contractor, Section 8.5 shall apply.
8.7. Releases 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 upon (i), where Lessee
serves as its own contractor, verification that Lessee has completed construction work or (ii),
where 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 waivers of liens.
9. USE OF PREMISES.
Lessee hereby agrees to use the Premises solely for aviation-related purposes approved by
Lessor in writing. Subject to the terms and conditions of this Lease, Lessee shall have the right to
sublease portions of the Premises, including individual hangars constructed as part of the Mandatory
Improvements in accordance with Section 8.1 hereof, to various and multiple third parties
("Sublessees") provided that such Sublessees are allowed to use the Premises only for the storage of
aircraft or another aviation or aviation-related purpose reasonably acceptable to Lessor and in a
manner that does not directly conflict with the duties and obligations of Lessee under this Lease.
Lessee may not provide or allow provision of fixed base operator services at the Airport without a
valid Fixed Base Operator Permit issued by Lessor.
10. SIGNS .
Lessee and its Sublessees may, at its sole expense and with the prior written approval of the
Director, install and maintain signs on the Premises related to Lessee's and its Sublessees' business
operations. Such signs, however, must be in keeping with the size, color, location and manner of
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display of other signs at the Airport. Lessee shall cause all signs to be maintained in a safe, neat,
sightly and physically good condition. Any such signs shall be removed within thirty (30) calendar
days following receipt by Lessee of written notice from the Director directing such removal and
providing a reasonable explanation for such removal.
11. RIGHTS AND RESERVATIONS OF LESSOR.
Lessor hereby retains the following rights and reservations:
11.1. Lessee's rights hereunder shall be subject to all existing and future utility easements
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 additionally shall be
subject to all rights granted by all ordinances or statutes which allow such utility
companies to use publicly owned property for the provision of utility services.
11.2. All fixtures and items permanently attached to any structure on the Premises belong to
Lessor, and any additions or alterations made thereon shall become the property of
Lessor upon the expiration or earlier termination of this Lease.
11.3. Lessor reserves the right to take any action it considers necessary to protect the aerial
approaches of the Airport against obstruction, including, but not limited to, the night 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.
11.4. Lessor reserves the right to close temporarily the Airport or any of its facilities for
maintenance, improvements, safety or security of either the Airport or the public, or
for any other cause deemed necessary by Lessor. In this event, Lessor shall in no way
be liable for any damages asserted by Lessee, including, but not limited to, damages
from an alleged disruption of Lessee's business operations.
11.5. 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 required as a condition for the expenditure of
federal funds for the development, maintenance or repair of Airport infrastructure.
Mo. During any war or nat.ionai emergency, Lessor shall have the right to lease any part of
the Airport, including its landing area, to the United States Government. In 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
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shall prevent Lessee from pursuing any rights it may have for reimbursement from the
United States Government.
11.7. 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 given by Lessor to the United States Government
through the Federal Airport Act, a public document which is on file in Lessor's City
Secretary's Office and which is incorporated herein by reference for all purposes.
Lessee agrees that this Lease and Lessee's rights and privileges hereunder shall be
subordinate to the Sponsor's Assurances.
12. INSURANCE.
12.1. Types of Coverage and Limits.
Lessee shall procure and maintain or cause to be procured and maintained at all times,
in full force and effect, a policy or policies of insurance as specified in this Section 12,
naming the City of Fort Worth as an additional insured (as evidenced on ISO form 2026,
or its equivalent, without modification) and covering all risks related to the leasing, use,
occupancy, maintenance, existence or location of the Premises. Lessee shall obtain or cause
to be obtained the following insurance coverage at the limits specified herein:
• Pro verty:
Fire and Extended Coverage on all improvements at full replacement cost limit;
• Commercial General Liability:
$1,000,000 per occurrence,
including products and completed operations;
• Automobile Liability:
$1,000,000 per accident,
including, but not limited to, coverage on any automobile used in Lessee's and any
Sublessee's operations on the Premises;
• 1janLjarkeej:)ej-s Le,_)ai Liability:
$1,000,000 per occurrence;
• Environmental Impairment Liability:
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1,000,000 per occurrence.
In addition, Lessee shall be responsible for all insurance to construction, improvements,
modifications or renovations to the Premises and for personal property of its own or in its
care, custody or control.
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12.2. Adjustments to Required Coverage and Lin-tits.
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 Sublessee's operations at the Airport. Lessee will accordingly comply or
cause compliance with such new requirements within thirty (30) days following notice to
Lessee.
12.3. Certificates.
As a condition precedent to the effectiveness of this Lease, Lessee shall furnish Lessor
with appropriate certificates of insurance signed by the respective insurance companies as
proof that it has obtained or caused to be 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 such coverage has been maintained in full force and effect.
All liability insurance required hereunder shall be evidenced by ACORD form 25,
"Certificate of Insurance", and all qualifying language (i.e. "endeavor to", "but failure to mail
such notice shall impose no obligation or liability of any kind upon the company, its agents or
representatives" and the like) shall be deleted from the cancellation provision of such form.
All property insurance required hereunder shall be evidenced by ACORD form 27, "Evidence
of Property Insurance".
12.4. Additional Requirements.
All insurance policies required hereunder shall be written through insurance
companies authorized to do business in the State of Texas and which are rated no less than A-
Nill (as shown in the then most current issue of A.M. Best's Key Rating Guide) or which are
otherwise reasonably satisfactory to Lessor. The policy or policies of insurance shall
collectively be endorsed to cover all of Lessee's and all Sublessees' operations at the Airport
and shall each be endorsed to (i) be primary to, and receiving no contribution from, any
insurance policies of self-insurance programs afforded to or available to Lessor; (n) provide
walvei, of subrogation in favor of Lessor, ILS Off]M-s, ag)CDIS, Sel'Vall[S dilU t11-1JDiOYeeS and (111)
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.
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13. 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 employee 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 respondeal superior shall not apply as between Lessor and Lessee, its officers, agents,
employees, contractors and subcontractors. Lessee further agrees that nothing herein shall be
construed as the creation of a partnership or joint enterprise between Lessor and Lessee.
14. INDEMNIFICATION.
LESSEE SHALL BE LIABLE AND RESPONSIBLE FOR ANY CLAIMS, DEMANDS,
LAWSUITS OR OTHER ACTIONS FOR DAMAGES OF ANY KIND, INCLUDING, BUT NOT
LIMITED TO, PROPERTY LOSS, PROPERTY DAMAGE AND/OR PERSONAL INJURY OF
ANY KIND, INCLUDING DEATH, TO ANY AND ALL PERSONS, OF ANY KIND OR
CHARACTER, WHETHER REAL OR ASSERTED, TO THE EXTENT CAUSED BY THE
NEGLIGENT OR WILLFUL ACT(S) OR OMISSIONS) OF LESSEE, ITS OFFICERS,
AGENTS, SERVANTS, EMPLOYEES AND/OR SUBLESSEES IN ADDITION, LESSEE, AT
LESSEES OWN EXPENSE, SHALL INDEMNIFY, DEFEND AND HOLD HARMLESS
LESSOR, ITS OFFICERS, AGENTS, SERVANTS AND/OR EMPLOYEES, FROM AND
AGAINST ANY CLAIM, LAWSUIT OR OTHER ACTION FOR DAMAGES OF ANY KIND,
INCLUDING, BUT NOT LIMITED TO, 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 ANY AND ALL
PERSONS, OF ANY Y KIND OR CHARACTER, WHETHER REAL OR ASSERTED, TO THE
EXTENT CAUSED BY THE NEGLIGENT OR WILLFUL ACT(S) OR OMISSION(S) OF
LESSEE,ITS OFFICERS, AGENTS, SERVANTS,EMPLOYEES ANDIORSUBLESSEES.
LESSOR DOES NOT GUARANTEE POLICE PROTECTION TO LESSEE OR ITS
PROPERTY LESSOR IS OBLIGATED ONLY TO PROVIDE SECURITY ADEQUATE TO
MAINTAINLESSOR'S CERTIFICATION UNDER FAA REGULATIONS LESSEE SHALL
COMPLY WITH ALL APPLICABLE REGULATIONS OF THE FAA PERTAINING TO
AIRPORT SECURITY ON THE PREMISES WHICH IS RELATED TO LESSEE'S
OPERATIONS THEREON AND SHALL COOPERATE WITH LESSOR IN THE
IMPLEMENTATION AND ENFORCEMENT OF LESSOR'S SECURITY PLAN AT THE
AIRPORT LESSEE SHALL PAY ALL FINES IMPOSED BY THE FAA ON LESSOR OR
LESSEE RESt;LTINC, F-R0.11 LESSEE'S FAILURE TO COMPLY WITH .SUCH FAA
REGULATIONS APPLICABLE TO THE PREMISES OR TO PREVENT UNAUTHORIZED
PERSONS OR PARTIES FROM THEIR OBTAINING ACCESS TO THE AIR OPERATIONS
AREA OF THE AIRPORT FROM THE PREMISES
15. WAIVER OF CHARITABLE IMMUNITY OR EXEMPTION.
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If Lessee, as a charitable association, corporation, partnership, individual enterprise or entity,
claims immunity to or an exemption from liability for any kind of property damage or personal
damage, injury or death, Lessee hereby expressly waives its tights to plead defensively any such
immunity or exemption as against Lessor.
16. DEFAULT AND REMEDIES.
16.1. Failure by Lessee to Pay Rent, Fees or Other Charles.
If Lessee falls to pay any rent, fees or other charges due under this Lease, Lessor shall
deliver to Lessee a written invoice and notice to pay the invoice within ten (10)calendar days.
If Lessee falls to pay the balance outstanding within such time, Lessor shall have the right to
terminate this Lease immediately.
16.2. Failure to Construct Mandatory Improvements.
If Lessee has not(1) demolished hangars existing on the Premises, in accordance with
Section 8.1 hereof, within one (1) year of the Effective Date, as may be extended by Force
Majeure in accordance with Section 28, or (ii) obtained a final certificate of occupancy for at
least one (1) hangar constructed on the Premises, in accordance with Section 8.1 hereof,
within two (2) years of the Effective Date, as may be extended by Force Majeure in
accordance with Section 28, then Lessor shall have the right to terminate this Lease
immediately.
16.3. Failure to Comply with Other Terms or Conditions.
If Lessee breaches or defaults under any provision of this Lease, other than those
breaches or defaults that are addressed by Sections 16.1 and 16.2, Lessor shall deliver written
notice to Lessee specifying the nature of such breach or default. Lessee shall have thirty (30)
calendar days following such written notice to cure, adjust or correct the problem to the
standard existing prior to the breach. If Lessee fails to cure the breach or default within such
time period, Lessor shall have the right to terminate this Lease immediately; provided,
however, that in the event such breach or default cannot reasonably be cured within thirty
(30) calendar days following such written notice, Lessee shall not be in default if Lessee
commences to cure, adjust or correct the problem within such thirty (30) day period and
thereafter diligently and in good faith pursues such cure, adjustment or correction to
conclusion.
16.4. Rh!bts of Lessor Upon 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)
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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 it will assert rio claim of
any kind against Lessor, its agents, servants, employees or representatives, which may stem
from Lessor's 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.
17. NOTICES.
Notices required pursuant to the provisions of this Lease shall be conclusively determined to
have been delivered when (1) hand-delivered to the other party, its agents, employees, servants or
representatives, or(ii) deposited in the United States Mail,postage prepaid, addressed as follows:
To LESSOR:
For Rent: For All Other Matters:
City of Fort Worth City of Fort Worth
Revenue Office Aviation Department
1000 Throckmorton 4201 N. Main St. Ste. 200
Fort Worth TX 76102 Fort Worth TX 76106
To LESSEE:
Meacham Development, LLC
Attn:Robert M. McMurrey
Meacham International Airport
Hangar 7N
220 Citation Dr.
Fort Worth,TX 76106-2759
18. ASSIGNMENT AND SUBLETTING.
18.1. In General.
Subject to Lc,-cCs riulioylzatlon to Leasc po 1�t I
ons of the Premises to Sublessees in
accordance with Section 9 hereof, Lessee shall not assign, sell, convey, sublease or transfer
any 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 or delayed.
18.2. Conditions of Approved Assignments and Subleases.
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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.
19. LIENS.
19.1. 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 and Lessor may terminate this Lease upon thirty (30) days' written notice. 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.
19.2. Landlord's Lien.
IN ADDITION TO ANY APPLICABLE STATUTORY LANDLORDS LIEN,
LESSEE GRANTS TO LESSOR, IN ORDER TO SECURE PERFORMANCE BY
LESSEE OF ITS OBLIGATIONS UNDER THIS LEASE, A SECURITY INTEREST IN
ALL GOODS, INVENTORY, EQUIPMENT, FIXTURES, FURNITURE,
IMPROVEMENTS, CHA TTEL PAPER, ACCOUNTS AND GENERAL INTANGIBLES,
AND OTHER PERSONAL PROPERTY OF LESSEE NOW OR HEREAFTER
SITUATED ON OR IN THE PREMISES OR OTHERWISE RELATING TO LESSEE'S
USE OF THE PREMISES, AND ALL PROCEEDS THEREFROM (THE
"COLLATERAL'). IF LESSOR TERMINATES THIS LEASE FOR A FAILURE BY
LESSEE TO PA Y LESSOR RENT OR FOR ANY OTHER BREACH OR DEFA UL T BY
LESSOR, LESSOR MAY, IN ADDITION TO ALL OTHER REMEDIES, WITHOUT
NOTICE OR DEMAND EXCEPT AS PROVIDED BELOW, EXERCISE THE RIGHTS
AFFORDED A SECURED PARTY UNDER THE TEXAS UNIFORM COMMERCIAL
CODE ("UCC"). IN CONNECTION WITH ANY PUBLIC OR PRIVATE SALE
UNDER THE UCC, LESSOR SHALL GIVE LESSEE FIVE (5) CALENDAR DAYS,
PRIOR 111RJTTEN,.A1OTJCEOF TIJE T1111-7 AND PLACE OF ANY PUBLIC SALE OF
THE COLLATERAL OR OF THE TIME AFTER WHICH ANY PRIVATE SALE OR
OTHER INTENDED DISPOSITION THEREOF IS TO BE MADE, WHICH IS
AGREED TO BE REASONABLE NOTICE OF SUCH SALE OR DISPOSITION.
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ID
20. 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.
Lessee also agrees to pay any and all federal, state or local taxes or assessments which may
lawfully be levied against Lessor due to Lessee's use or occupancy of the Premises or
property placed on the Premises by Lessee as a result of its occupancy or on account of any
Improvements or property placed on the Premises by Lessee as a result of its occupancy.
21. COMPLIANCE WITH 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 invitees 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 regulations adopted by
the City Council pertaining to the conduct required at airports owned and operated by Lessor, 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 shall immediately desist
from and correct the violation.
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22. 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, handicap, sex, sexual orientation or familial status. 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, handicap, sex, sexual orientation or
familial status. Lessee agrees to furnish its accommodations and to price its goods and services on a
fair and equal basis to all persons. 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 this regulation 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.
23. 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.
24. GOVERNMENTAL POWERS.
It is understood and agreed that by execution of this Lease, Lessor does not waive or
surrender any of its governmental powers.
25. NO WAIVER.
The failure of either party 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 that party's right to insist
upon appropriate performance or to assert any such night on any future occasion.
26. VENUE AND JURISDICTION.
If any action, whetnei I-Cal or asserted, at iaW or in equity, arises on the basis of any prov),sroll,
of this Lease or of Lessee's operations on the Premises and/or the Airport, venue for such action shall
lie 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.
27. SEVERABILITY.
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If any provision of this Lease shall be held to be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions shall not in any way be affected or impaired.
28. FORCE MAJEURE.
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
and/or any other cause beyond the reasonable control of Lessor or Lessee("Force Majeure"). In the
event that Lessor or Lessee is delayed in the performance of a duty or obligation Linder this Lease on
account of Force Majeure, such party shall be excused from the completion of that duty or obligation
for a period of time equal to period of time comprising the delay on account of Force Majeure.
29. HEADINGS NOT CONTROLLING.
Headings and titles used in this Lease are for reference purposes only and shall not be deem.ed
a part of this Lease.
30. ENTIRETY OF AGREEMENT.
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(the "City Council").
31. REVISIONS TO MINIMUM STANDARDS.
The City's Minimum Standards for Fixed Base Operators and Other Airport Tenants, a public
document adopted by the City Council on June 16, 1992 and currently on file in the City Secretary's
Office (the "Minimum Standards"), contains standard terms and conditions that must be included
in n all Airport leases and governs the provisions of this Least. In the eveiu thai the MMIMLIM
Standards are subsequently revised to (1) permit leases of improved and unimproved land at the
Airport to have terms longer than the maximum forty(40) years allowed hereunder or(11) allow, upon
expiration of a lease, some disposition of improvements constructed and owned by a tenant on its
leasehold other than the City's automatically taking full title to such improvements, then Lessor and
Lessee agree to meet at the request of either party in order to address in good faith any concerns or
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wishes of such party arising on account of such revisions to the Minimum Standards, with the
understanding that (i) any amendment to this Lease must first be approved by the City Council, as
provided by Section 30 hereof and (ii) this provision does not confer any obligation on Lessor or its
City Council to amend this Lease.
[SIGNATURE PAGE IS NEXT FOLLOWING PAGE.]
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IN WITNESS WHEREOF, the parties hereto have executed this Lease in multiples, this
26`t'day of September, 2003.
CITY OF FORT WORTH: MEACHAM DEVELOPMENT, LLC:
By: By:—�
Mare Ott __° Robert M:Mci4u& Q
Assistant City Manager Manager
ATTEST:
ClIona Pea"n
City Secretary
APPROVED AS TO FORM AND LEGALITY:
By; �
Peter Vaky M
Assistant City Attorney
M & C: L-13578 06-10-03
4�
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Meacham Development,LLC
STATE OF TEXAS §
COUNTY OF .... §
BEFORE ME, the undersigned authority,a Notary Public in and for the State of Texas, on
this day personally appeared Robert M. McMurrey, Manager of Meacham Development, LLC,
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 Meacham Development, LLC and that he
executed the same as the act of Meacham Development, LLC for the purposes and consideration
therein expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE thiso�2- , ) day of N � -
2003. }
tz4 p .t SUSIE M FOWLER ''
„
�01 NOTARY PUBLIC
�����.,
State of Texas Notary Public in and for the State of Texas
,Y/Comm. Ex p. 11-30-2006 xas
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 Marc Ott, 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 day of
2003.
Notary Public in and for the State of
Texas
Hangar s 5-9N Unimproved Ground Lease with
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EXHIBIT "A"
PREMISES
rn
Exhibit "A"
FORTWORTH
Real Property Description for;
Fort Worth International Airport
Lease Site No. 5-9N
A parcel of land,being a portion of Block 1,Meacham Airport,according to plat recorded in Cabinet A,
Slide 2445,Plat Records,Tarrant County,Texas,also known as Fort Worth Meacham International
Airport,and being more particularly described as follows:
Commence at a point in the west line of North Main Street and the north line of 38th Street,said point being
an easterly southwest comer of said Meacham Airport,Thence:WEST,983.38 feet,and NORTH, 1,947.91
feet to a PK Nail with Shiner set for the POINT of BEGINNING of the herein described lease,said point
being the south comer of Lease Site 5N,having Texas State Plane Coordinates of X=2044705.57,
Y=418896.01;
Thence: North 41 degrees 10 minutes 55 seconds West,588.67 feet,to a 5/8"Iron Rod set with rod cap
stamped"City of Fort Worth Survey Divison" (All 5/8"iron rods set being so capped&marked) Set for
the west comer of the herein described lease site;
Thence:Thence:North 48 degrees 41 minutes 18 seconds East,587.32 feet,to a fence post for a comer;
Thence: Generally with said fence South 82 degrees 51 minutes 54 seconds East,72.63 feet to a red capped
5/8"Iron Rod Set for the most northerly comer of the herein described lease site;
Thence: South 41 degrees 08 minutes 42 seconds East,at 62.77 feet passing a red capped 5/8"iron rod
found being the west comer of lease site 4-N,in all 138.11 feet to a red capped 5/8"Iron Rod Set;
Thence: South 48 degrees 51 minutes 18 seconds West, 111.15 feet,to a red capped 5/8"Iron Rod Set-,
Thence: South 41 degrees 08 minutes 08 seconds East,370.64 feet,to a red capped 5/8"Iron Rod Set at the
beginning of a curve to the right having a radius of 30.00 feet;
Thence: With said curve through a central angle of 90 degrees 17 minutes 18 seconds,an arc length of
47.27 feet,(chord bears South 04 degrees.,00 minutes,31 seconds West,42.53 feet),to a red capped 5/8"
Iron Rod Set,
Thence: South 49 degrees 09 minutes 10 seconds West,493.91 feet,to the Place of Beginning,and
containing 14.4 acres(329,609 square feet)of land,more or less. OF
-,, ,y . --
Note;Inaccordance wit lit the Texas Board of Professional Laud Surveying.General Rules of Procedures and Pracoiiccs,66
Pro""(1:4 Y 1"k.I[, ol j,)fl ii....xo,![afl 6'ymo, Sin 141� 1 1'.,; ano 19- uy I
a combined scale factor M 0,9998811.Distances arc Around nicasuicincrits North American Datum. 1 127(NAID 27) Texas
Central Zone 42U14,
Note:surveyed on the ground June 2003. U
ENGINEERING DEPARTMENT
SURVEY DIVISION
THE CITY OF FORT WORTH Or 1000 THROCKMORTON STREET Or FORT WoRi,fi, TEXAS 76102-6311
(817) 871-7925 * FAX (817) 871-8845
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EXHIBIT"B"
ENVIRONMENTAL ABATEMENT
Asbestos Abatement on the Premises
In accordance with Section 6.4 of the Lease, Lessor hereby agrees to undertake the following
asbestos abatement measures on the Premises:
1. Remove wall and ceiling surface texture and joint compound within those hangars on the
Premises currently identified as Hangars 6N, 7N and 9N.
2. Remove asbestos floor tile and mastic within those hangars on the Premises currently
identified as Hangars 6N, 9N and ION.
Lessor intends to enter into a contract with a qualified third party to undertake such asbestos
abatement measures. Lessee understands that Lessor intends to comply with competitive bidding
procedures set forth in Chapter 252 of the Texas Local Government Code before awarding any such
contract. Once the contract for the asbestos abatement measures described above is executed by both
Lessor and the third party contractor, it is anticipated, but cannot be guaranteed, that the actual
asbestos abatement work will take thirty(30) calendar days.
Environmental Remediation to Hanp-ar 6N Site
In accordance with Section 6.4 of the Lease, and in addition to the asbestos abatement
measures described above, Lessor hereby agrees to undertake the following environmental
remediation measures on that portion of the Premises currently identified as Hangar 6N:
1. Pump sandtrap located in center of the hangar on the Premises currently identified as
Hangar 6N and properly dispose of any waste material located therein.
Lessor intends to enter into a contract with a qualified third party to undertake such
environmental remediation measures. Lessee understands that Lessor intends to comply with
competitive bidding procedures set forth in Chapter 252 of the Texas Local Government Code before
awarding any such contract.
EXHIBIT"C"
MANDATORY IMPROVEMENTS
DALLAS 1300457v4
Exhibit C
Mandatory Improvements
Within one year of the effective date of this lease the leasee shall
demolish the structures currently on the lease premises and construct two
21,976 square foot hangars, 4,020 square feet of shop space and 14,520
square feet of office space. This is further show on the attached site plan.
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City of Fort Worth, Texas
EMagor and j Communication
DATE REFERENCE NUMBER LOG NAME GE
PA
6/10/03 3578T 55MEA IEC 1 of 2
SUBJECT IMPROVED AND UNIMPROVED GROUND LEASE WITH IEC INTERNATIONAL, INC.
AT FORT WORTH MEACHAM INTERNATIONAL AIRPORT
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to execute an Improved and
Unimproved Ground Lease Agreement with mandatory improvements with IEC International, Inc. (IEC)
for 301,190 square feet of improved land and 50,550 square feet of unimproved land at Fort Worth
Meacham International Airport (Meacham).
DISCUSSION:
The Aviation Department has received a request from Mr. John Hughett,- President of IEC, to lease
301,190 square feet of improved land and 50,550 square feet of unimproved land at Meacham. The
actual square footage of the lease site will be contingent on a ground survey to be undertaken in the
near future.
IEC proposes to demolish Hangars 6N, 7N, 8N and 9N to allow for construction of four 30,000 square
foot hangars and associated ramp areas. IEC has requested the City be responsible for the abatement
of existing environmental issues prior to demolition of the hangars. The City has completed the
inspection to identify environmental issues. The estimated cost of abatement is $54,000.00, and the
Environmental Management Department has available resources and has agreed to fund the
abatement of environmental conditions associated with this proposal. A separate Mayor and Council
Communication for asbestos abatement will be forwarded at a later date.
Hangars 6N, 7N, 8N and 9N, which are proposed to be demolished, are currently leased. Hangar 6N is
leased to Andrew Pena on a month-to-month basis, and hangars 7N, 8N and 9N are leased to IEC on
an annual basis. Existing revenue, facility specifications, and existing tenants/type leases are as
follows:
Current Annual
Hangar No. Square Feet Improved Ground (sf) Tenant/Type Lease Revenue
6N 6,393 28,710 Andrew Pena/Monthly $16,072.92
7N 8,000 14,799 IEC/Annual $15,003.96
8N 8,000 14,799 IEC/Annual $15,003.96
9N 4,928 9,124 IEC/Annual $ 8,807.92
Total current revenue: $54,888.76
Total proposed revenue: $79,383.70
Total new revenue: $24,494.94
City of Fort Worth, Texas
"ayar and 4:0uncit jZammunica tion
DATE REFERENCE NUMBER LOG NAME PAGE
6/10103 **L-13578 � 55MEA IEC� 1 2 of 2
SUBJECT IMPROVED AND UNIMPROVED GROUND LEASE WITH IEC INTERNATIONAL, INC.
AT FORT WORTH MEACHAM INTERNATIONAL AIRPORT
The total new revenue associated with this lease will be $24,494.94 annually, or $2041.24 monthly. In
addition to new revenue, this proposal brings desired redevelopment to the airport's east side, replacing
facilities that are in excess of 40 years old, and best optimizes available acreage for aviation use.
Upon execution of the proposed lease, staff will give a 30-day notice to the tenant in 6N for the purpose
of terminating the lease. The developer has indicated that demolition will begin approximately 3 months
after lease execution. The developer will obtain a performance bond for development in connection
with this lease.
The term of the lease will be 30 years, commencing on the date of execution, and expiring September
30, 2033, with the option of two five-year renewals. All other terms and conditions of the lease
agreement will be in accordance with standard City and Aviation Department policies.
The property is located in COUNCIL DISTRICT 2.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies there will be no impact on revenue in the current fiscal year associated
with this action.
MO:k
Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY
Office by: (to)
Marc Ott 8476
Originating Department Head:
Mike Feeley(Acting) 5403 (from) APPROVED 06/10/03
Additional Information Contact:
Mike Feeley(Acting) 5403