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HomeMy WebLinkAboutContract 25749 CITY SECRETARY LN CONTRACT NO. SECOND AMENDMENT TO OFFICE LEASE AGREEMENT This Second Amendment to Office Lease Agreement("Amendment"), by and between F.W. Baker Bldg., L.P.,a Texas Limited Partnership("Landlord"),and the City of Fort Worth,a("Tenant"),is effective as of the I"day of April 2000(the"Effective Date"). WITNESSETH: WHEREAS,Landlord and Tenant heretofore entered into that certain Office Lease Agreement(the"Lease") dated March 28, 1997,under and pursuant to the terms of which Tenant has Leased from Landlord certain space known as Suite 100 and containing approximately 8,220 square feet of Rentable Area("Existing Premises")in that certain office building commonly known as the"Baker Building'(`Building"),which is located at 110 West Seventh Street,Fort Worth,Texas,as more particularly described in the Lease;and WHEREAS, Landlord and Tenant heretofore entered into that certain First Amendment to Office Lease Agreement dated October 2, 1997("First Amendment'),under and pursuant to the terms of which Tenant has Leased from Landlord certain space known as the"Expansion Space" containing approximately 2,575 square feet of Rentable Area(being approximately 2,230 square feet of Usable Area)in that certain office building commonly known as the "Baker Building"("Building"),which is located at 110 West Seventh Street,Fort Worth,Texas,as more particularly described in the Lease;and WHEREAS, Landlord and Tenant desire to amend the Lease as and upon the terms and conditions hereinafter specified;and NOW,THEREFORE,for and in consideration of the premises and mutual covenants contained herein and in the Lease,the parties hereto do hereby covenant and agree as follows: I. Defined Terms.All references to the Lease shall include the First Amendment.Terms defined in the Lease and delineated herein by initial capital letters shall have the same meaning ascribed thereto in the Lease, except to the extent that the meaning of such tern is specifically modified by the provisions hereof. In addition,other terms not defined in the Lease but defined herein will,when delineated with initial capital letters,have the meanings ascribed thereto in this Second Amendment. Terms and phrases which are not delineated by initial capital letters shall have the meanings commonly ascribed thereto. 2. Leased Premises. From and after the Effective Date,the term"Leased Premises"(as defined in Paragraph I of the Lease) shall include the Expansion Space for all purposes, including, without limitation, the determination of Tenant's share of Excess Operating Expenses, and thereafter, the "Leased Premises" shall be comprised of the Existing Premises and the Expansion Space,and the Leased Premises are stipulated for all purposes to contain approximately 10,795 square feet of Rentable Area. 3. Lease Term. Subject to Tenant's specific option to terminate this lease as stated in Exhibit A,the term of this lease("Term')shall be a period of(60)months,commencing April 1,2000 and terminating March 31, 2005. 4. Base Rental. From and after the Effective Date,Paragraph 4(A)of the Lease shall be amended by adding thereto the following: Notwithstanding the foregoing, commencing on the Effective Date and continuing through and including the last day of the Lease Term. Base Rental for the Expansion Space shall accrue and be payable at the rate reflected on the following schedule: April 1,2000—March 31,2001 $13.00 psf of Rentable Area per Annum. April 1,2001—March 31,2002 $13.00 psf of Rentable Area per Annum. April 1,2002—March 31,2003 $13.00 psf of Rentable Area per Annum. April 1,2003—March 31,2004 $15.00 psf of Rentable Arra per Annum. April 1,2004—March 31,2005 $15.00 psf of Rentable Area per Annurtt. 5. Base dense Amount. From and after the Effective Date,Paragraph 4(B)of the Lease shall be amended by adding thereto the following: Notwithstanding the foregoing, the Base Expense Amount ("Base Year') shall be based upon Operating Expenses of the calendar year 1991 per the Tenant's Net Rentable Area in the Building. 6. Leasehold Improvements. Tenant Wreby accepts the Premises "As is" and without benefit of further improvements. 7. Tenant Estoppel. Tenant hereby confirms and ratifies the Lease, as amended hereby, and acknowledges that Landlord is not in default under said Lease as of the date this Amendment is executed by Tenant. 8. Renewal Option. Provided Tenant has never been in default under this Lease,Tenant may elect,by giving written notice to Landlord at least six(6)months prior to the expiration of the initial 60 month Term,to extend and renew the Tem:of this Lease for 1 additional three(3)year term(the"Renewal Term)to commence upon the expiration of the initial 60 month Term,upon the same terms and conditions set forth in this Lease,except that the Base Rental for the Renewal Term shall be the then current rental rate being offered by Landlord to new tenants for comparable space in a comparable location in the Building;provided,however,in no event will the Base Rental for the Renewal Term be(i)less than the Base Rent for the last year of the Term,including all escalations made pursuant to Section 4 of this Lease or(ii)greater than sixteen dollars($16.00)per rentable square feet of the Leased Premises. a:mydoc.kci.bb.cityoJ1ortworth(110899) 9. Termination.Tenant shall have the right to terminate the Lease in the manner hereinafter provided subject to the condition that Tenant does not receiving funding from the City of Fort Worth for its operations for the ensuing year.Tenant's right to terminate the Lease may be exercised only by written notice to Landlord on or before December 1,2000,2001,2002,or 2003 as the case may be, that it has not received funding and will not occupy the Premises during the next lease year(as used herein,lease year refers to April I-March 31).If Tenant gives Landlord notice of termination,the Lease shall terminate on March 31 of ensuing year,provided that,as a further condition to such termination,Tenant shall pay to Landlord one month's base rent at the time such termination notice is given. 10. Brokerage Fees and Commissions. Landlord will pay Richard D.Minker Co.a commission of2% of the gross annual rental due under the Lease,on an annual basis,but conditioned upon receipt of verification by Landlord that the funding from the City of Fort Worth for Tenant's operations for the ensuing year will be available to the Tenant. 11. Effect of Amendment. Except as expressly amended by the provisions hereof, the terms and provisions contained in the Lease shall continue to govern the rights and obligations of the parties;and all provisions and covenants in the Lease shall remain in full force and effect as stated therein, except to the extent specifically modified by the provisions of this Amendment. This Second Amendment and the Lease shall be construed as one instrument. NOTICE OF INDEMNIFICATION: THE PARTIES TO THIS AMENDMENT HEREBY ACKNOWLEDGE AND AGREE THAT THE LEASE CONTAINS CERTAIN INDEMNIFICATION PROVISIONS. LANDLORD: Fort Worth Baker Building,L.P.,a Texas Limited Partnership 7 By: / Title: cLt Date: TENANT: By: Name: ��L\C �'L�ta Title: ASSISTANT CITY MANAGER Date: 3 zo - "Zo APPROVED AS TO FORM AND LEGALITY: Assis City Attorney A T: oria Pearson, Cis et Y arY4 J)a ,�—�Q- � Contract Authorization _a- Date ill � grs G'[C� f�:� rL��VSlw1 a:mydoc.kci.bb.cityofFoctworth(1 10899) 2` City of Fort Worth, Texas "Clear AndC.0mmunication Caundt DATE REFERENCE NUMBER LOG NAME PAGE 2/29/00 **L-12737 02BAKER 1 of 2 SUBJECT AUTHORIZATION TO AMEND THE LEASE BETWEEN THE CITY OF FORT WORTH AND FORT WORTH BAKER BUILDING, L.P. FOR THE FORT WORTH INTERNATIONAL CENTER RECOMMENDATION: It is recommended that the City Council authorize the City Manager to execute a second amendment to the lease between the City of Fort Worth and Fort Worth Baker Building, L.P., dated March 28, 1997 (M&C L-11942), leasing space in the Baker building for the Fort Worth International Center. The amendment renews the lease for an additional five years, commencing April 1, 2000 at an annual rate of $140,335.00 for three years and an annual rate of $161,925.00 for the last two years. DISCUSSION: The Fort Worth International Center occupies 10,795 square feet of office space on the ground Floor of the Baker Building, located at 110 West 7th Street. A five-year lease amendment has been negotiated at the rate of $13.00 per square foot for the first three years and $15.00 per square foot for the last two years. Of the $140,335.00 annual rate for the first three years, co-locators at the International Center will contribute $26,936.00, and of the $161,925.00 for the last two years, co-locators will contribute $31,080.00. The base rent will be subject to annual adjustments for increases in operating expenses of the building over and above those established during the 1999 base year, and Center tenants will pay proportionate shares accordingly. Working together with international community groups, the City of Fort Worth created the Fort Worth International Center in 1997 to support international activities and provide services to Fort Worth citizens interested in international business, cultural exchange, education and service activities. Comprised of ten different international organizations, the Fort Worth International Center enhances the City's international image, increases international relations and trade, and creates greater opportunities and jobs for the citizens of Fort Worth. The Center is a public/private partnership funded by the City of Fort Worth and the organizations with offices in the Center. Since mid-1997, organizations in the International Center have had a measurable economic impact of $13.1 million; provided 2,183 counseling sessions; and hosted over 2,104 international visitors and 13,500 domestic visitors. Co-locators at the Fort Worth International Center: American-Thai Education Foundations and Yonok College Fort Worth Hispanic Chamber of Commerce Fort Worth Sister Cities International City of Fort Worth Office of International Affairs City of Fort Worth Strategy 2000 Tarrant County Asian American Chamber of Commerce Tarrant County College's International Small Business Development Center U.S. Department of Commerce Fort Worth Export Assistance Center U.S.-Argentina Chamber of Commerce World Affairs Council of Greater Fort Worth City of Fort Worth, Texas 4bayor And Couni"'I lZommunication DATE REFERENCE NUMBER LOG NAME PAGE 2/29/00 **L-12737 02BAKER 2 of 2 suBJECT AUTHORIZATION TO AMEND THE LEASE BETWEEN THE CITY OF FORT WORTH AND FORT WORTH BAKER BUILDING, L.P. FOR THE FORT WORTH INTERNATIONAL CENTER FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that funds are available in the current operating budget, as appropriated, of the General Fund. MGJ Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY Office by: (to) Ramon Guajardo 6140 APPROVED CITY COUNCIL Originating Department Head: Ricardo Roberto 212-2661 (from) FF9 29 2000 GG01 537010 0028010 $70,167.50 Additional Information Contact: t�+ LUT s8=0tary d fte Jacqueline Bender 212-2660 C31y of FariW*rtkTex