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HomeMy WebLinkAbout019139-AD4 - General - Contract - Casa Manana, Inc.CSC No. 19139-AD4 FOURTH ADDENDUM TO LEASE AGREEMENT WITH CASA MANANA, INC. (CITY SECRETARY CONTRACT NO. 19139) This Fourth Addendum ("Fourth Addendum") is made and entered into by and between the CITY OF FORT WORTH, a Texas home -rule municipal corporation ("Landlord" or "City"), acting by and through Valerie Washington, its duly authorized Assistant City Manager, and CASA MANANA, INC., a Texas non-profit corporation ("Tenant"), acting by and through Wally Jones, its duly authorized president. RECITALS A. On June, 1992 (via M&C C-13393), the City Council authorized the execution of a lease agreement with Tenant for the operation of the Casa Manana Theatre ("Theatre"), and the parties executed a Lease Agreement (City Secretary Contract No. 19139) ("Lease"), under which Lease Tenant agreed to operate and maintain the Theatre and the improvements at no cost to the Landlord. B. On November 8, 1994 (via M&C G-10875), the City Council authorized a payment for a new boiler at the Theatre, and the parties executed Addendum to Lease, under which Tenant agreed to repay Landlord for the cost of boiler replacement. C. On October 22, 2002 (via M&C G-13779), the City Council authorized approval of extensive renovation plans to the Theatre to convert the Theatre from a "theatre -in - the -round" configuration to a modified thrust/proscenium stage, and the Tenant financed the renovation through a capital campaign and a loan. D. On August 9, 2007 (via M&C C-22293), the City Council authorized an amendment to the Lease for the construction by Landlord, at Landlord's expense, of a fence along the western border of the Theatre, and extended the Term ( as defined in the Lease) to December 31, 2020 due to Tenant meeting a threshold of expenditures on the Theatre as set forth in the Lease. E. On October 12, 2012 (via M&C C-25892), the City Council authorized an interlocal agreement with Tarrant County for the reconstruction of the Theatre's parking lot, with the Landlord contributing over $80,000.00. F. On November 11, 2014 (via M&C C-27074), the City Council authorized an amendment to the Lease to extend the term to December 31, 2024 (City Secretary Contract No. 19139- A1) ("Amendment"), pursuant to the request of Tenant, so that the term coincides with the terms of a loan that was being transferred to another financial institution. OFFICIAL RECORD CITY SECRETARY Fourth Addendum to CSC 19139 between the City of Fort Worth and Casa Manana, Inc. FT. WORTH, TX -1- G. On November 8, 2016 (via M&C C-27987), the City Council authorized the execution of an addendum to the Lease (City Secretary Contract No. 19139-AD1) ("First Addendum") that allowed for cost sharing in the design and completion of 2,200 additional square feet of office space, 1,400 square feet of storage, and a new 1,400 square foot theater (collectively, the "Previous Improvements"), with the Landlord reimbursing half of the cost of the Previous Improvements up to the amount of $409,000.00. H. On September 19, 2017 (via M&C C-28380), the City Council authorized the execution of an amendment to the First Addendum (City Secretary Contract No. 19139AD1A1) that allowed for an additional $30,000.00 of Landlord funding participation for the Previous Improvements. I. On December 14, 2021 (via M&C 21-0980), the City Council authorized (I) the execution of an addendum to the Lease (City Secretary Contract No. 19139-AD2) ("Second Addendum") that allowed for cost sharing in the design and completion of the Previous Improvements, with the Landlord reimbursing half of the cost of the Previous Improvements up to the amount of $500,000.00; (ii) a waiver of the building and trade permit fees for the completion of the Previous Improvements; and (iii) an amendment to the Lease (City Secretary Contract No. 19139-A3) ("Third Amendment") to extend the term of the Lease for an additional ten (10) years allowing the Lease to continue until December 31, 2034. J. On December 10, 2024 (via M&C 24-1094), the City Council authorized (I) the execution of an addendum to the Lease (City Secretary Contract No. 19139-AD3) ("Third Addendum") to allow for cost sharing in the building systems repairs and replacements completed during fiscal ® years 2024 and 2025 (the "Building Systems Improvements)", with the Landlord reimbursing half of the cost of the Building Systems Improvements up to the amount of $200,000.00; and (ii) the execution of an amendment to the Lease (City Secretary Contract No. 19139-A4) ("Fourth Amendment") to extend the term of the Lease for an additional twenty (20) years allowing the Lease to continue until December 31, 2054. L. Now, the Tenant desires Landlord to provide additional funding participation towards the Building Systems Improvements with the Landlord reimbursing Tenant an amount not to exceed $171,526.79. AGREEMENT In consideration of the mutual covenants contained in this Fourth Addendum, Landlord and Tenant agree to the following terms and conditions as follows: 1. Lease. The parties agree that the Building Systems Improvements completed pursuant to this Fourth Addendum shall be subject to all terms and conditions of the Lease, as amended, except as set forth herein. In the event of any conflict between the Lease, as amended, and this Fourth Addendum, this Fourth Addendum shall control. All terms and conditions of the Lease, as amended, are ratified and remain in fall force and effect. Fourth Addendum to CSC 19139 between the City of Fort Worth and Casa Manana, Inc. -2- 2. Building Systems Improvements. Tenant shall certify that the Building Systems Improvements, as further described in Exhibit "A", have been completed by contractors selected through a competitive bidding process pursuant to Chapter 252 of the Local Government Code. Tenant shall obtain, at its sole cost and expense, all necessary permits, licenses, and approvals for the completion of the Building Systems Improvements. 3. Funding and Reimbursements a. Tenant shall be solely responsible for obtaining any and all necessary third -party financing for the completion of the Building Systems Improvements. b. To qualify for reimbursement, Tenant must provide to City proof of Building Systems Improvements completion including, but not limited to, proof that payments were made during the fiscal years 2024 and 2025 and in a sufficient form and substance as determined by City and in City's sole reasonable discretion ("Reimbursement Documents"). City agrees to reimburse Tenant for half of the additional costs of the Building Systems Improvements, up to the amount of $171,526.79, upon approval of the submitted Reimbursement Documents. C. Reimbursements shall be paid by City to Tenant no later than ninety (90) days after City's approval of all Reimbursement Documents. 4. Insurance. In addition to the insurance required by the Lease, as amended, Tenant shall obtain the following insurance during the completion of the Building Systems Improvements: Tenant shall procure or require Tenant's Contractor to procure and maintain at all times during the Term, in full force and effect, the following policies of insurance: a. Commercial General Liability: $2,000,000 each occurrence; $3,000,000 general aggregate per project; $3,000,000 product/ completed operations aggregate; and $200,000 personal and advertising injury. b. Business Automobile Liability: $1,000,000 each accident on a combined single limit basis. Coverage shall be for "Any Auto" owned, non -owned, and hired. C. Worker's Compensation: Required for all Tenant contractor's employees and all workers on the Leased Premises. $1,000,000 Part B: Employer's Liability d. Environmental Impairment Liability (EIL) and Pollution Liability: $2,000,000 per occurrence $2,000,000 aggregate Fourth Addendum to CSC 19139 between the City of Fort Worth and Casa Manana, Inc. -3- The commercial general liability insurance policy and the automobile liability insurance policy shall be primary to all other insurance maintained by Tenant or City and shall be non-contributory and shall be written for not less than the limits of liability set forth above. Umbrella or Excess Liability. If insurance policies are not written for specified coverage limits, an Umbrella or Excess Liability insurance for any differences is required. Excess Liability shall follow form of the primary coverage. Additional Insured. The City, its officers, employees and volunteers shall be named as an Additional Insured on all applicable insurance policies. Waiver of Subrogation. The insurance shall include a waiver of rights of recovery (subrogation) in favor of the City of Fort Worth. Except as amended by this Fourth Addendum, all of the terms and conditions of the Lease, as amended, are ratified and remain in full force and effect. [SIGNATURES ON FOLLOWING PAGE] Fourth Addendum to CSC 19139 between the City of Fort Worth and Casa Manana, Inc. -4- This Fourth Addendum shall be effective on A E4 52026. LANDLORD CITY OF FORT WORTH, a Texas home -rule municipal corporation 1/4d.LWM-._L Valerie Washington (May 8, 2026 09:24:14 CDT) Valerie Washington Assistant City Manager APPROVED BY: Marilyn Marvin, Director Property Management Department TENANT CASA MANANA, INC., a Texas no -profit corporation William W. ne President & Exewyve Producer 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. Steve Chilton (May 6, 2026 06:55:07 CDT) Steve Chilton, Lease Manager Property Management Department APPROVED AS TO FORM AND LEGALITY: Sophie Mathews Sophie Matthews Assistant City Attorney 4p4n�agIl� OR 4a o O,o P!`o 0�10 ATTEST: oao* oQ d �� A .��-. anntEZAsda4 �Qaaob�' L Jannette S. Goodall City Secretary Contract Authorization: Form 1295:2026-1413097 M&C: 2026-0240 Fourth Addenduin to CSC 19139 between the City of Fort Worth and Casa Manana, Inc. -5- OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX W E Eo n 0 LC! 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Authorize the execution of a fourth lease addendum to the lease agreement between the City of Fort Worth and Casa Manana, Inc. to authorize funding participation of an additional $171,526.79 for the building systems repairs and/or replacements made in Fiscal Year 2025 to the Casa Manana facility located at 3101 West Lancaster Avenue; 2. Authorize the contribution to Casa Manana, Inc. in the amount up to $171,526.79 as a one-time capital contribution to support repairs and/or replacements to the facility for Fiscal Year 2025; 3. Adopt the attached appropriation ordinance adjusting estimated receipts and appropriations in the General Capital Projects Fund by increasing estimated receipts and appropriations in the Casa Manana-Building Improve project (City Project No. 105881) in the amount up to $171,526.79 and decreasing estimated receipts and appropriations in the Future Community Partnerships Programmable project (City Project No. P00047) by the same amount to fund a one-time capital contribution to support the repairs for Fiscal Year 2025; and 4. Amend the Fiscal Years 2026-2030 Capital Improvement Program. DISCUSSION: On December 10, 2024 the City Council authorized the execution of a third addendum to the lease agreement between the City of Fort Worth (City) and Casa Manana, Inc. (CMI) via Mayor and Council Communication (M&C) 24-1094 and City Secretary Contract No. 19139-AD3 provided for City participation towards the funding of certain building system repairs and/or replacements made to the Casa Manana facility, located at 3101 West Lancaster Avenue, during fiscal year 2025 in an amount up to $200,000.00. Such building system repairs and/or replacements included improvements made to mechanical, electrical, lighting, and plumbing systems of the Casa Manana facility. This M&C authorizes a fourth addendum to the lease agreement between City and CMI to, upon receipt of supporting invoices and documentation from CMI, allow additional participation towards the funding of building system repairs and/or replacements, completed in Fiscal Year(FY) 2025, in an amount up to $171,526.79. The funding for this participation is available in the Future Community Partnerships Proorammable project within the General Capital Projects Fund. The Future Community Partnerships Programmable project is a holding place for monies the City has committed for use in conjunction with community partners for capital improvements. The year to date funding in the programmable project is: _T FY2026 Beginning Authority Budget Adjustment FY2025 Remaining Balance I FBalance Future Community $7,657,243.50 This M&C ($171,526.79) $7,485,716.71 Partnerships F F (P00047) Funding for this project was not included in the FY2026-2030 Capital Improvement Program because the additional expenses were unknown at the time. The action in this M&C will amend the Fiscal Years 2026 - 2030 Capital Improvement Program as approved in connection with Ordinance 27979-09-2025 Section 8 CAPITAL IMPROVEMENTS. All other terms under the lease and subsequent renewals and amendments shall remain in effect. The Casa Manana Theater is in COUNCIL DISTRICT 7. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that funds are currently available in the Future Community Partnerships Programmable project within the General Capital Projects Fund and upon approval of the above recommendations and adoption of the attached appropriation ordinance, funds will be available in the General Capital Projects Fund for the Casa Manana- Building Improve. project to support the execution of the agreement. Prior to an expenditure being incurred, the Property Management Department will have the responsibility to validate the availability of funds. TO Fund Department Account Project Program Activity Budget Reference # Amount ID I ID I I I Year Chartfield 2 FROM Fund Department Account Project Program Activity Budget Reference # Amount ID I ID I I I Year Chartfield 2 Submitted for City Manager's Office by_ Originating Department Head: Additional Information Contact: ATTACHMENTS Valerie Washington (6199) Marilyn Marvin (7708) Stuart Young (8379) 21CASA MANANA FY25 IMPROVEMENTS REIMBURSEMENT funds avail.docx (CFW Internal) CASA FY25 IMPROVEMENTS M AND C MARpdf (Public) FID Table for CPN 105881 Casa Manana Building Improvements.xlsx (CFW Internal) From 1295 Casa 1.27.26.pdf (CFW Internal) ORD.APP 21CASA MANANA FY25 IMPROVEMENTS REIMBURSEMENT 30100 A026(13).docx (Public) FORT WORTH. City Secretary's Office Contract Routing & Transmittal Slip Contractor's Name: N/A Subject of the Agreement: Fourth Addendum to Lease Agreement with Casa Manana, Inc. (City Secretary Contract No. 19139) M&C Approved by the Council? * Yes 0 No ❑ If so, the M&C must be attached to the contract. Is this an Amendment to an Existing contract? Yes 0 No ❑ 19139-AD4 If so, provide the original contract number and the amendment number. Is the Contract "Permanent"? *Yes ❑ No 0 If unsure, see backpage for permanent contract listing. Is this entire contract Confidential? *Yes ❑ No 0 If only specific information is Confidential, please list what information is Confidential and the page it is located. Effective Date: May 5, 2026 If different from the approval date. Expiration Date: n/a If applicable. Is a 1295 Form required? * Yes 0 No ❑ *If so, please ensure it is attached to the approving M&C or attached to the contract. Project Number: If applicable. N/A *Did you include a Text field on the contract to add the City Secretary Contract (CSC) number? Yes 0 No ❑ Contracts need to be routed for CSO processing in the followingorder: rder: 1. Katherine Cenicola (Approver) 2. Jannette S. Goodall (Signer) 3. Allison Tidwell (Form Filler) *Indicates the information is required and if the information is not provided, the contract will be returned to the department.