HomeMy WebLinkAboutOrdinance 21115-02-2014 Ordinance No.2 1 1 1 5-02-2014
AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND
APPROPRIATIONS IN MUNICIPAL AIRPORTS FUND IN THE AMOUNT OF
$140,000.00, FROM AVAILABLE FUNDS, FOR THE PURPOSE OF REIMBURSING
SPINKS WEST SIDE ASSOCIATES, LLC FOR MANDATORY IMPROVEMENTS
MADE TO THE LEASED SITE W5 AT FORT WORTH SPINKS AIRPORT;
PROVIDING FOR A SEVERABfLITY CLAUSE; MAKING THIS ORDINANCE
CUMULATIVE OF PRIOR ORDINANCES; REPEALING ALL ORDINANCES IN
CONFLICT HEREWITH; AND PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH,
TEXAS:
SECTION 1.
That in addition to those amounts allocated to the various City departments for Fiscal Year 2013-2014 in the
Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the
Municipal Airports Fund in the amount of $140,000.00, from available funds, for the purpose of
reimbursing Spinks West Side Associates, LLC for mandatory improvements made to the ]eased site W5
at Fort Worth Spinks Airport.
SECTION 2.
That should any portion, section or part of a section of this ordinance be declared invalid, inoperative or
void for any reason by a court of competent jurisdiction, such decision, opinion or judgment shall in no way
impair the remaining portions, sections, or parts of sections of this ordinance, which said remaining
provisions shall be and remain in full force and effect.
SECTION 3.
That this ordinance shall be cumulative of Ordinance No. 20952-09-2013 and all other ordinances and
appropriations amending the same except in those instances where the provisions of this ordinance are in
direct conflict with such other ordinances and appropriations, in which instance said conflicting provisions
of said prior ordinances and appropriations are hereby expressly repealed.
SECTION 4.
This ordinance shall take effect upon adoption.
APPROVED AS TO FORM AND LEGALITY:
...........
Assistant City Attorney airy,J. KmOse i Se tart'
ADOPTED AND EFFECTIVE: February 4, 2014
Exhibit - Spinks West Side Associates
Lease Sites W3-W6; Mapsco 119U
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City of Fort Worth, Texas
Mayor and council Communication
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COUNCIL ACTION.: Approved on 21412014 - Ordinance Nos. 21114-02-2014 & 21115-02-
2014
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DATE: Tuesday, February 04, 2014 REFERENCE NO.: **C-26659
LOG NAME: 55FWS SWSA UPDATES
SUBJECT:
Authorize Execution of Amendment No. 2 to City Secretary Contract No. 34065, an Unimproved Ground
Lease Agreement for Lease Sites W3, W4, W5 and W6, Authorize Execution of a Ground Lease
Agreement with Mandatory Improvements for Lease Site W5 with Spinks West Side Associates, LLC, at
Fork Worth Spinks Airport, Authorize Reimbursement to Spinks West Side Associates, LLC, in the Amount
of$140,000.00 for Apron Construction Costs and Adopt Appropriation Ordinances (COUNCIL DISTRICT
6)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize execution of Amendment No. 2 to City Secretary Contract No. 34065, an unimproved Ground
Lease Agreement for lease sites W3, W4, W5 and W6;
2. Authorize execution of a Ground Lease Agreement with mandatory improvements for lease site W5
with Spinks West Side Associates, LLC, at Fort Worth Spinks Airport;
3. Authorize reimbursments in the amount of$140,000.00 to Spinks West Side Associates, LLC, for
Apron Construction Costs;
4. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the
Airports Gas Lease Project Fund in the amount of$140,000.00 from available funds;
5. Authorize the transfer in the amount of$140,000.00 from the Airports Gas Lease Project Fund to the
Municipal Airports Fund; and
6. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the
Municipal Airports Fund in the amount of$140,000.00 from available funds for reimbursement of Apron
Construction Costs.
DISCUSSION:
On March 28, 2006, (M&C C-21373) the City Council approved an unimproved ground lease with
mandatory improvements for lease sites W3, W4, W5 and W6 with Spinks West Side Associates, LLC
(SWSA), at Fort Worth Spinks Airport City Secretary Contract (CSC) No. 34065. This lease was later
amended (CSC No. 37154) in order to reflect the completion of a full survey and a corrected property
boundary description, as well as incorporating a revision to the scope of the mandatory improvements.
The current Agreement provides for a 30 year term with two 5 year renewal options. Staff has received a
request from SWSA to decrease the property boundary area by releasing lease sites W3 and W4 back to
Logname: 55FWS SWSA UPDATES Page 1 of 2
the City and executing a new Ground Lease Agreement for an expanded lease site W5. The remaining
lease site, W6, will consist of 31,200 square feet of ground space.
Lease Site W5, originally consisting of 36,840 square feet, will expand to a total of 78,277.32 square feet
of ground space. The added 41,437.32 square feet, at a ground rate of$0.27 per square foot, will
generate additional revenue in the amount of$11,188.08 annually, ($932.34 monthly), in accordance with
the Aviation Department's current Schedule of Rates and Charges.
During the initial term of the lease, rental rates shall be subject to an increase every year to reflect the
upward percentage change, if any, in the Consumer Price Index for the period since the last adjustment.
In addition, rental rates during the initial and renewal terms will also be subject to a ground rate
adjustment every five years. The ground rate will automatically be adjusted to equal the then current rates
prescribed by the Schedule of Rates and Charges.
To aid in the construction of the concrete apron area associated with the mandatory improvements for a
36,840 square foot hangar, and as an economic incentive to stimulate and encourage business
development on lease site W5, SWSA has accepted an offer to be reimbursed for construction costs of
the apron installation in an amount not to exceed $140,000.00. In order to receive the reimbursement,
SWSA will be required to meet Federal Aviation Administration standards for concrete construction as well
as submitting statements, invoices and/or bills paid by SWSA reflecting the reasonable costs associated
with apron construction.
The property is located in COUNCIL DISTRICT 6, I\Aapsco 119U.
FISCAL INFORMATION / CERTIFICATION:
The Financial Management Services Director certifies that upon approval of the above recommendations
and adoption of the attached appropriation ordinances, funds will be available in the current capital
budget, as appropriated, of the Airports Gas Lease Project Fund. The Aviation Department is responsible
for the collection and deposit of funds due to the City.
FUND CENTERS:
TO Fund/Account/Centers FROM Fund/Account/Centers
2) PE40 491052 0551201. $11,188.08 4) PE40 538040 551929990100 $140,000.00
3) P240 446200 551929990100 $140,000.00
3) P240 538040 551929990100 $140,000.00
4) PE40 476240 0551002 $140,000.00
5) PE40 476240 0551002 $140,000.00
5) PE40 539120 0551002 $140,000.00
CERTIFICATIONS:
Submitted for City Manager's Office by Fernando Costa (6122)
Originating Department Head: Bill Welstead (5402)
Additional Information Contact: Jonnie Huitt (5409)
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