HomeMy WebLinkAboutContract 29391 LEASE AGREEMENT
CITY SECHE-q-A y
STATE OF TEXAS § CONTRACT
COUNTY OF TARRANT §
This lease agreement (Lease) is made and entered into this, the day of
2003, the effective date hereof, at Fort Worth, Texas by and between Ft.
Worth Plaza, Limited Partnership, a Texas Partnership, (Lessor), and the City of Fort Worth, a
municipal corporation, acting by and through its duly authorized representative, Assistant City
Manager, Reid Rector, (Lessee). The term "Lessor" shall include the agents, representatives,
employees, and contractors of Lessor. The term "Lessee" shall include the agents,
representatives, and employees of Lessee.
SECTION 1. Leased Premises and Common Area.
A. For and in consideration of the rental payments to be paid under this Lease, Lessor leases
to Lessee and Lessee leases from Lessor the following described property on a full
service basis:
Approximately 13,344 rentable square feet of office space (the"Office Space") in
the "Building" located at 307 W. 7th Street, Fort Worth, Texas, and 10 non-
reserved parking spaces in the "Parking Garage" located at 307 W. 7th Street, Fort
Worth, Tarrant County, Texas, a more particular description of which is attached
as "Exhibit A."
The Office Space and parking spaces as described above together with any and all
structures, improvements, fixtures and appurtenances thereon, thereunder or over, shall
be referred to as the "Leased Premises".
B. Lessor also grants Lessee the non-exclusive right to use the "Common Areas" of the
Building and Parking Garage. Common Areas are defined as the areas designated by
Lessor for the common use of all tenants including but not limited to hallways, parking
areas, sidewalks, landscaping, curbs, truckways, delivery passages, lobbies, elevators,
stairways, loading areas, private streets and alleys, lighting facilities, drinking fountains,
meeting rooms,public toilets and other common rooms and common facilities.
C. Lessor agrees that the Leased Premises location shall not change during the term of the
Lease, however, if Lessor desires to move Lessee during the term of this Lease, Lessor
shall offer comparable space to Lessee and Lessee shall determine, in its sole discretion
whether to accept such space.
D. Lessor agrees that no remodeling or renovation will block the view or sunlight to the
mezzanine offices. If Lessor desires to perform renovation or remodeling in Level 1
that may minimize or block the view or amount of sunlight to the mezzanine offices,
City of Fort Worth Lease Page 1 �,
Lessor shall obtain Leesee's prior written consent, which shall not be unreasonably
withheld.
E. The boundaries and location of the Leased Premises are described on the attached Exhibit
A and made a part hereof.
SECTION 2. Use of Premises.
A. The Leased Premises shall be used primarily for administrative offices of the City of Fort
Worth and its sub-tenants. Subtenants are defined to be organizations public or private
that promote or are engaged in international trade , goodwill or otherwise deemed
beneficial to the City.
B. The Leased Premises may not be used for any illegal activity, or any activity of a
hazardous or high-risk nature that would endanger property or human safety. Lessee will
take measures to guard against any condition at the Leased Premises of an illegal nature,
or of a hazardous or high-risk nature that would endanger property or human safety.
SECTION 3. Term and Rent.
A. This lease shall be for a period of 5 years commencing on either(i)March 1, 2004, or (ii)
Lessor's completion of Tenant Improvements as described in Exhibit `B", whichever is
later, and terminating sixty months thereafter, unless a prior termination is effected by
either Lessor or Lessee under the termination provisions of this Lease. During the initial
five-year term, Lessee shall pay Lessor annual rent of$ 12.00 per square foot per year
base rent,payable in equal monthly installments of$ 13,344.00.
B. Lessee shall pre-pay the first month's rental payment of $13,344.00 upon execution of
this Lease by Lessor and Lessee; no other rental payment shall be due until the first day
of the second month that Lessee has possession of the Leased Premises. Except for the
first month's rental payment, the rental payment and additional rent expense shall be
made to the Lessor within 30 days of receiving a bill from Lessor. Rent for any partial
calendar months shall be prorated on a per diem basis.
C. Lessee shall have the right to renew this Lease for one three year term, provided that
Lessee notifies Lessor in writing of its intent to extend at least 120 days prior to the
expiration of the Lease. The terms of this Lease shall continue to govern and control the
relationship of the parties during the renewal period. Rent for the renewal term shall be
the then prevailing market rate.
D. Lessee shall also be responsible for Additional Rent Expenses as outlined in Section 4
during any renewal term.
E. Lessee shall pay Lessor rent at 309 W. 7th Street, Suite 107, Fort Worth, Texas 76102.
SECTION 4. Additional Rent Expenses
A. In the event Operating Expenses (as hereinafter defined) of Lessor incurred in connection
with the Land and Building, of which the Leased Premises are a part, shall for any
City of Fort Worth Lease Page 2
calendar year during the Term of this Lease exceed the sum of the 2004 Base Year Actual
expenses, Lessee agrees to pay as additional rental Lessee's pro rata share ("Lessee's
Share") as determined by Lessor of such Operating Expenses in excess of 2004 Base
Year. ("Excess Operating Expenses") of the Leased Area. The 2004 Base Year shall be
defined as the calendar year 2004. In no event shall the additional rent expense exceed
$0.15 per square foot per year. In addition, in no event shall Lessee be responsible for
paying Lessor Operating Expenses during the Base Year.
B. The term "Operating Expenses" as used herein shall include all costs and expenses of
every kind and nature whatsoever incurred by Lessor in connection with the ownership,
operation, and maintenance of the Building, No decrease in Operating Expenses shall
reduce Lessee's rent below the sum set forth in Section I.A.
C. Lessee agrees, at Lessor's request, to pay Lessee's Share of Excess Operating Expenses
for the ensuing twelve (12)months, as estimated once a year by Lessor, in time and place
provided in Section 3.E, each in an amount equal to one-twelfth (1/12) of Lessee's Share
so estimated by Lessor. If this Lease commences on other than the first day of a calendar
year, or if this Lease expires on other than the last day of a calendar year, then the Excess
Operating Expenses shall be prorated according to the portion of the Term that occurs
during such calendar year. At least thirty (30) days prior to the commencement of each
calendar year during the Term, commencing with the calendar year 2005, Lessor shall
furnish Lessee a written statement setting forth the estimated Lessee's Share for the
following year and a statement showing one-twelfth(1/12) of the amount of the estimated
Lessee's Share. If, as finally determined, Lessee's Share shall be greater than or less than
the aggregate of all installments so paid to the Lessor for such twelve (12) month period,
then Lessee shall pay to Lessor the amount of such underpayment within thirty (30) days
of delivery of such statement, or the Lessor shall credit Lessee for the amount of such
overpayment, as the case may be.
D. Lessee may at Lessee's sole cost and expense, at reasonable times during Lessor's normal
business hours, upon reasonable notice, audit Lessor's books and records regarding the
Additional Rent Expense for any particular calendar year. Lessee must request any
intended audit no later than sixty (60) days following Lessee's receipt of Lessor's
statement of actual Additional Rent Expenses for the previous calendar year.
E. Lessor agrees to pay all real property taxes assessed against the Property and applicable
insurance premiums as they come due.
SECTION 5. Additional Parking Spaces
A. Lessor, upon written request by Lessee agrees to lease Lessee up to 10 additional non-
reserved parking spaces in the Parking Garage for$70.00 per month.
B. Lessor agrees that the maximum daily parking charge charged by Lessor at the Parking
Garage shall be $2.00 for visitors to the Office Space. "Visitors" being charged $2.00
will be limited to an average of 6 per business day determined on a monthly basis.
Visitors shall have no in-and-out privileges.
City of Fort Worth Lease Page 3
SECTION 6. Building Exterior; Signage
A. Lessor shall install and Lessee shall maintain flags provided by Lessee on the Exterior of
the Building as shown on Exhibit"B"throughout the term of this Lease.
B. Lessor shall not obstruct or block any of the exterior windows on the first and mezzanine
levels of the Office Space during the term of the Lease.
C. Lessor shall provide appropriate signage identifying the Leased Premises and Lessee.
SECTION 7. Improvements, Services Provided.
A. Lessor at his own expense shall construct and install to the satisfaction of Lessee the
"Tenant Improvements" to the Leased Premises as described in attached Exhibit `B" and
made a part hereof. If Lessor fails to substantially complete the improvements in the
manner described in Exhibit `B" by March 1, 2004, Lessor agrees to pay Lessee a
liquidated damages fee of $100.00 for every day the Tenant Improvements are not
completed by March 1, 2004, however, Lessor shall not be responsible to pay liquidated
damages for delays in completion caused by Lessee. Lessee will designate a contact
person to review and inspect the work completed by Lessor and to assist Lessor and once
satisfied with the Tenant Improvements Lessee shall commence occupancy.
B. Lessor shall furnish Lessee, at Lessor's expense, the following services to the Leased
Premises during the Term:
(1) Air conditioning and heating in season, at such times as Lessor normally furnishes
these services to other Lessees in the Building and at such temperatures and in
such amounts as are considered by Lessor to be standard, but such service outside
normal business hours and on Saturdays, Sundays and holidays shall be furnished
only at Lessor's discretion and in any event only upon twenty-four (24) hours
prior written request by Lessee, who shall bear the standard charges of Lessor
therefore, which shall never be less than the cost thereof.
(2) Hot and cold water at those points of supply provided for general use.
(3) Standard building janitor service in and about the Building and the Office Space,
five days per week, and periodic window washing; however, Lessee shall pay the
additional costs attributable to the cleaning of improvements within the Office
Space other than building standard improvements or levels of cleaning.
(4) Elevators for ingress to and egress from the Building during such periods as are
considered by Lessor to be standard.
(5) Proper building standard facilities to furnish sufficient electrical power for
standard lighting, typewriters, dictating equipment, calculating machines and
Lessee's computer network and computer systems.
(6) Replacement of fluorescent lamps in building standard ceiling mounted fixtures
installed by Lessor and incandescent bulb replacement in public areas.
City of Port Worth Lease Page 4
(7) For purposes of this lease normal business hours shall be 7:00 a.m. to 6:00 p.m.
on weekdays, except holidays and 8:00 a.m. to 1:00 p.m. on Saturdays, except
holidays.
SECTION 8. MAINTENANCE AND REPAIR OF LEASED PREMISES.
Lessor shall maintain in good repair the roof, foundation, air conditioning and heating system
and exterior walls of the Leased Premises and Common Areas. Lessee agrees to give Lessor
written notice of defects or need for repairs in the roof, foundation, air conditioning and heating
system and exterior walls and Common Areas of the Leased Premises. Lessee will provide such
written notification as soon as it discovers repairs are necessary and Lessor shall complete or
have completed the repairs or maintenance within 10 days of receiving such notification or if
repair is not capable of being completed within 10 days, within a reasonable time thereafter, so
long as Lessor is diligently pursuing such repair. Failure of the Lessor to complete such repairs
or maintenance shall be considered a default under the Lease.
SECTION 9. ALTERATIONS; INSPECTIONS.
A. Lessee shall not make any alterations, additions, or improvements to the Leased Premises
without the prior written consent of Lessor, such consent shall not be unreasonably
withheld. Except that consent shall not be necessary for the installation of unattached
movable trade fixtures which may be installed without drilling, cutting or otherwise
defacing the Leased Premises.
B. Lessor shall have the right to enter upon the Leased Premises upon written notice to
Lessee for the purpose of inspecting same, or of making repairs or additions to the Leased
Premises, or of making repairs, alterations, or additions to adjacent premises, or of
showing the Leased Premises to prospective purchasers, lessors, or lenders.
SECTION 10. INSURANCE
A. Lessor agrees to insure the structure and Building and Parking Garage. Such insurance
shall provide protection for liability, fire and casualty, and property damage for the
property owned by the Lessor, situated at, and including, the Leased Premises.
B. Lessee shall maintain a commercial insurance policy for fire and extended coverage and
liability
C. Prior to Lessee moving into the Leased Premises, Lessor must provide Lessee with
evidence of these coverage's represented by Certificates of Insurance issued by the
insurance carrier. Throughout the term, Lessor must provide Lessee with renewal
certificates prior to the expiration date shown on the previous Certificate of Insurance on
file with Lessor. Certificates of Insurance must specify the additional insured status
mentioned above as well as the Waivers of Subrogation. Each Certificate of Insurance
must state that Lessor will be notified in writing thirty (30) days prior to cancellation,
material change, or renewal of insurance.
City of Fort Worth Lease Page 5
SECTION 11. INDEMNITY.
TO THE FULLEST EXTENT PERMITTED BY LAW LESSEE AGREES TO
INDEMNIFY, PROTECT, DEFEND AND HOLD HARMLESS LESSOR FOR, FROM
AND AGAINST ALL CLAIMS ARISING OUT OF LESSEE'S USE AND OCCUPANCY
OF THE LEASED PREMISES. NOTHING CONTAINED HEREIN SHALL EVER BE
CONSTRUED SO AS TO REQUIRE LESSEE TO ASSESS, LEVY AND COLLECT ANY
TAX TO FUND ITS OBLIGATIONS UNDER THIS SECTION.
SECTION 12: DEFAULTS AND REMEDIES
A. Lessee Defaults. The occurrence of any of the following shall constitute a default under
this Lease:
1. Lessee's failure to pay rent or to make any other payment required to be made by
Lessee hereunder when due within thirty (30) days after Lessee's receipt of
written notice of nonpayment from Lessor.
2. Abandonment or vacation of the Leased Premise by Lessee for a period in excess
of 14 days during the term hereof, for any purpose except remodeling or
restoration.
3. Lessee's failure to cause to be released or bonded around mechanics or
materialmen's liens filed against the Leased Premises as a result of the act or
omission of Lessee, it employees, agents, contractors or subcontractors within 30
calendar days after the date such lien has been filed.
4. Lessee's failure to observe or perform any other provision of this Lease to be
observed or performed by Lessee, where such failure continues for 30 days after
written notice thereof by Lessor to Lessee; provided,however, that if the nature of
such failure cannot reasonably be cured within such thirty(30) day period, Lessee
shall not be deemed to be in default if Lessee shall within such period commence
such cure and thereafter diligently prosecute the same to completion.
B. Remedies for Lessee Defaults In the event of any default by Lessee, then, in addition to
any other remedies available to Lessor at law or in equity (all of which rights and
remedies shall be cumulative, with the exercise of one or more rights or remedies not to
impair Lessor's rights to exercise any other right or remedy, and all of which may be
exercised with or without legal process as then may be provided or permitted by the laws
of the State of Texas), Lessor shall have the following remedies:
1. Lessor may terminate this Lease and all rights of Lessee by giving written notice
to Lessee of such election. Lessor may alter locks and/or security devices at the
Leased Premises following notice of termination of the Lease.
C. Notice of Termination. If Lessee fails to cure any default within the time periods set
forth in Section 12A. above, Lessor may terminate this lease upon written notice sent
certified mail to the Lessee. Termination shall be effective 30 days after Lessee receives
such notice.
City of Fort Worth Lease Page 6
D. Lessor Default. In the event of any failure to perform any provision in this Lease
Agreement by Lessor, Lessee shall give Lessor written notice specifying the default with
particularity, and Lessor shall thereupon have thirty (30) days (plus an additional
reasonable period as may be required in the exercise by Lessor of due diligence) in which
to cure any such default. If Lessor fails to so cure any default after this notice, Lessee
may terminate this Lease upon written notice to Lessor, such termination to be effective
within ten (10) days after Lessor's receipt of such notice.
SECTION 13. Fixtures .
Lessor herein agrees that no property or equipment, owned or installed by Lessee, or any
representative of Lessee, shall, under any circumstances, become a fixture, and that Lessee shall
reserve the right to remove any and all such property or equipment at any time during the term of
this lease, or subsequent to its termination by either party; provided that Lessee shall repair all
damage to the Leased Premises caused by the placement or removal of such personal property or
equipment within the Leased Premises. Lessor further agrees that it will, at no time, hold or
retain, any property owned or installed by Lessee, for any reason whatsoever unless Lessee fails
to remove such property upon termination of this Lease.
SECTION 14. Non-Appropriation Termination
Funding, Non-Appropriation. Notwithstanding any provision contained herein, this Lease
shall terminate in the event that the governing body of Lessee shall fail to appropriate sufficient
funds to satisfy any obligation of Lessee hereunder. Termination shall be effective as of the last
day of the fiscal period for which sufficient funds were appropriated or upon expenditure of all
appropriated funds, whichever comes first. If Lessee terminates this Lease under the terms of
this Section 14, Lessee shall nevertheless pay to Lessor, upon the effective date of such
termination, a termination fee ("Termination Fee") in an amount equal to the unamortized
portion of the amounts expended by Lessor for Tenant Improvements in accordance with
Exhibit`B" and for the unamortized portion of brokerage commission paid by Lessor upon
execution of this Lease. For example, if Lessor has expended $50,000 on Tenant Improvements
and $25,000 on commission, and Lessee terminates this Lease under the provisions of this
paragraph at the end of Lessee's fiscal year during the third year of this Lease (September
30,2006) and assuming that the Lease began on March 1, 2004, Lessee would be obligated to pay
Lessor approximately 48.332% of the dollars expended by Lessor for Tenant Improvements, and
approximately 48.332% of the dollars expended by Lessor for commission, for a total of
$36,249.
SECTION 15. Surrender of Leased Premises. Upon the termination of this Lease for any
reason whatsoever, Lessee shall surrender possession of the Leased Premises in the same
condition as the Leased Premises were in upon delivery of possession under the Lease,
reasonable wear and tear excepted. Lessee also shall surrender all keys for the Leased Premises
to Lessor at the place then fixed for the payment for rent and shall inform Lessor of all
combinations on locks, safes, and vaults, if any, on the Leased Premises. Lessee shall remove all
its furniture and equipment on or before the termination of the Lease; and Lessee shall be
responsible for repairing any damage to the Leased Premises caused by the removal of furniture
and equipment.
City of Fort Worth Lease Page 7
SECTION 16. Governmental Regulations.
A. Lessee agrees to comply fully with all applicable Federal, state, and municipal laws,
statutes, ordinances, codes, or regulations in connection with use of the Leased Premises.
Provided, however, Lessor shall make all improvements necessary to make the Office
Space comply with the Americans With Disabilities Act of 1990 ("ADA"), 42 U.S.C. §
12101 et se ., and shall fully indemnify and hold harmless Lessee from and against any
and all claims, losses, damages, suits, and liability of every kind, including all expenses
of litigation, arising out of or in connection with the Leased Premises' compliance, or
lack of compliance, with ADA. Notwithstanding the immediately preceding sentence,
Lessor shall not be obligated to relocate the light switches within the Office Space, nor,
since handicap access restrooms are available in the common area on the first floor of the
Leased Premises, shall Lessor be obligated to provide ADA compliant restrooms within
the Office Space.
B. Lessee shall not introduce nor allow to be introduced any hazardous waste or materials
within the Leased Premises. Lessor represents and warrants that to the best of its
knowledge it has not introduced any hazardous wastes or materials within the Leased
Premises and that all hazardous wastes or materials have been abated; that if any
hazardous wastes or materials are found on the Leased Premises that were introduced
prior to the occupancy by Lessee, Lessor will indemnify Lessee against all costs
associated with the removal of the materials.
SECTION 17. Acceptance of Leased Premises .
Lessee represents that, upon occupancy of the Leased Premises and the completion of the Tenant
Improvements to the satisfaction of the Lessee, it accepts the Tenant Improvements, takes the
Leased Premises AS-IS, WHERE-IS, in good condition and that the Leased Premises are suitable
for the purposes for which they are being leased. Lessor has made no representations or
warranties, express, implied or arising by operation of law regarding the condition of the Leased
Premises or its fitness for a particular purpose.
SECTION 18. Assignment.
A. Lessee shall not assign this Lease without the prior written approval of Lessor. Upon
issuance of such approval, this Lease shall be binding on the successors, and lawful
assignees of Lessor and the successors of Lessee, as permitted by the terms of this
agreement and by the laws such assignment shall be subject to all the responsibilities and
liabilities of Lessee and shall be subject to all provisions regarding termination and
eviction.
B. Lessee may sublease the Leased Premises without the prior written approval of Lessor, to
subtenants as defined in Section 2A
SECTION 19. Subordination to Mortgages; Estoppel Certificate.
Lessee accepts this Lease subject and subordinate to any mortgage(s), deed(s) of trust, ground
lease(s) or other lien(s) now or hereafter affecting the Premises, the Building or the Property, and
to renewals, modifications, refinancings and extensions thereof and if, but only if, each holder of
any mortgage, deed of trust, ground lease or other lien subsequently affecting the Premises, the
Building or the Property has executed and delivered to Lessee a SNDA (hereinafter defined),
City of Fort Worth Lease Page 8
then to any mortgage(s), deed(s) of trust, ground lease(s) and other lien(s) subsequently affecting
the Premise, the Building or the Property, and to renewals, modifications, refinancings and
extension thereof(collectively, a "Mortgage"). The party having the benefit of a Mortgage shall
be referred to as a "Mortgagee." This clause shall be self-operative, but upon request from a
Mortgagee, Lessee shall execute a commercially reasonable SNDA in favor of the Mortgagee.
In lieu of having the Mortgagee be superior to the Lease, a Mortgagee shall have the right at any
time to subordinate its Mortgage to this Lease. If requested by a successor-in-interest to all or
part of Lessor's interest in this Lease, Lessee shall, without charge, attorn to the successor-in-
interest if, but only if, such successor-in-interest has executed a SNDA or other agreement
whereby such successor in interest has agreed not to disturb or interfere with Lessee's possession
of the Premises (subject to the terms and conditions of this Lease) for so long as Lessee is not in
default under this Lease beyond any applicable notice and cure period. Lessor represents and
warrants to Lessee that as of the date of this Lease there is no Mortgage filed against the
Property. Prior to permitting a Mortgagee to obtain a Mortgage on the Property, Lessor will use
commercially reasonable efforts to cause such Mortgagee to execute a Subordination, Non-
disturbance and Attornment Agreement ("SNDA") in form and substance reasonably satisfactory
to Lessor, Lessee and the Mortgagee. The SNDA, among other things, shall provide that in the
event a Mortgagee forecloses on the Property or otherwise enforces its right to divest Lessor of
its fee simple interest in the Property, then such Mortgagee will not disturb Lessee's use and
enjoyment of the Premises for so long as Lessee is not in default under this Lease beyond any
applicable notice and cure period. From time to time at the request of either party, each party to
this Lease agrees to promptly execute, have acknowledged and deliver a certificate stating (a) the
commencement date and the date of expiration of the Term; (b) the rights (if any) of Lessee to
extend the Term or to expand the Leased Premises; (c) the Rent (or any components of the Rent)
then currently payable hereunder; (d)whether this Lease has been amended in any respect and, if
so, submitting copies of or otherwise identifying the amendments; (e) whether, within its
knowledge, there are any existing breaches or defaults hereunder by either party hereto, and, if
so, stating the defaults with reasonable particularity; and (f) such other information pertaining to
this Lease as may be reasonably requested. A party's failure to deliver to the other party an
executed estoppel certificate within ten (10) days after the failing party first received a written
request for such certificate shall constitute a representation by the failing party that all statements
set forth in the requested estoppel certificate are true and correct.
SECTION 20. Notices.
All notices to Lessor shall be sent to:
Susan Fest
Ft. Worth Plaza L.P.
309 West 71h Street, Suite 107
Fort Worth, Texas 76102
City of Fort Worth Lease Page 9
As well as to:
Ted Zadeh
c/o MTA Management
12225 Greenville Avenue, Suite 118
Dallas, Texas 75243
All notices to Lessee shall be sent to:
Sigi Frias
307 West 7"' Street, Suite C100
Fort Worth, Texas 76102
As well as to:
Administrator, Real Property Services
City of Fort Worth
927 Taylor Street
Fort Worth, Texas 76102
Mailing of all notices under the Lease shall be deemed sufficient if mailed certified,
return receipt requested and addressed as specified herein to the other party's address. All time
periods related to any notice requirements specified in the Lease shall commence upon the
terms specified in the section requiring the notice.
SECTION 21. Entire Agreement; Modification .
A. This Lease shall constitute the entire agreement of the Lessor and Lessee, and shall
supersede any prior agreements, either oral or written,pertaining to the Leased Premises.
B. This agreement cannot be changed or modified orally, but only by an instrument in
writing signed by both parties.
SECTION 22. Waivers .
One or more waivers of any covenant, term, or condition of the Lease by either Lessor or Lessee
shall not be construed as a waiver of a subsequent breach of the same covenant, term, or
condition. The consent or approval by either Lessor or Lessee to or of any act by the other party
requiring such consent or approval shall not be deemed a waiver or render unnecessary consent to
or approval of any subsequent similar act.
SECTION 23. Choice of Law; Venue.
A. This lease and the relationship created hereby shall be governed by the laws of the State
of Texas.
B. Venue for any action brought to interpret or enforce the terms of the Lease or for any
breach shall be in Tarrant County, Texas.
City of Fort Worth Lease Page 10
SECTION 24. Holdover.
Any possession of the Leased Premises by Lessee after the date of expiration or termination of
the Lease shall be deemed to be a month-to-month tenancy at sufferance, terminable by either
party upon 30 days written notice.
SECTION 25. Contract Construction.
The parties acknowledge that each party and, if it so chooses, its counsel have reviewed and
revised this Agreement and that the normal rule of construction to the effect that any ambiguities
are to be resolved against the drafting party must not be employed in the interpretation of this
Agreement or any amendments or exhibits hereto.
ATTACHMENT &EXHIBITS
Exhibit A Leased Premises
Exhibit B Tenant Improvements
SIGNED this 6;Z12 qday of ,0� � , 2003.
LESSOR: Ft. Worth Plaza Limited Partnership LESSEE: CITY OF FORT WORTH
a Texas Limited Partnership
By elec mspace America, Inc. By:
Tex s corporation Reid Rector
Assistant City Manager
By:
M. izade ATTEST:
Pres n
Gloria Pearson
City Secretary
Contract Authorization AAPPR , A FORM AND LEGALITY:
U-1k-0Datey or His Designee
Date:
M & C Number: L"�c37o� Contract Number:
City of Fort Worth Lease Page 11 MFFUCIQL REMO �
Ciff COPY
�Tr. sy .
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 Reid Rector, known to me to be the same 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/she executed the same as the act of said 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.
ROSELLA BARNES
NOTARY PUBLIC Notary Public in and for the State of Texas
State of Texas
Comm.Exp. 03-31-2005
City of Fort Worth Lease Page 12
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 M.T. Akhavizadeh, known to me to be the same person whose
name is subscribed to the foregoing instrument, and acknowledged to me that the same was the
act of the Ft. Worth Plaza Limited Partnership and that he executed the same as the act of said Ft.
Worth Plaza Limited Partnership for the purposes and consideration therein expressed and in the
capacity therein stated.
G EN UNDER MY HAND AND SEAL OF OFFICE this ID1 day of
2003.
s,Pa�ou;;`r AMY E. RANDELL
Notary Public,State of Texas
MY Commission Expires
.;;;o;;E;• August 29,2005 Notary Public in nd for the State of Texas
City of Fort Worth Lease Page 13
Arlington
B Class Properties
EXHIBIT A
4
00
4
0
- -
`—�' CD a c
LI
! Q b
a .
0
a
- � m
m
o U � �
❑ L_l ° CI) x
W
W O
� roli
U
Space Available
City of Fort Worth Lease Page 14
EXHIBIT A (cont)
N
p
d
N
[ti W
4
o
Z
IMMENMIN
w
W
� W
o Z
MEM"MG
z cel
Q +,
o
W
Lj !4-1
M X
`o U I—
vz +J
-4-1
o _jU) S
z° W r� L
U
W
O
U
Space Available
I
I
City of Fort Worth Lease Page 15
I
EXHIBIT B
7V Ace sjae ce s-& ll GI are-
Wo✓'�'r�.� �� (o cis'
K
M
b
Install \
Exterior
Flags
OfFi<.G f•FF�GL /,
2 _
0
V
a
i
M N
NJ,
r---------------
City of Fort Worth Lease Page 16
EXHIBIT B (cont)
COMMER
FLOOR PLAN MEZZANINE LEVEL BUILDIN
NOT TO SCALE 307 W. 7TH STRI
BANK OF COMMERCE AS-BUILT FORerr%77 +
t✓rJ�,�.�ra�/Clnls q/M/��ula Pj/c-
l
City of Fort Worth Lease Page 17
C
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 12/16/2003
DATE: Tuesday, December 16, 2003
LOG NAME: 17FWIC LEASE REFERENCE NO.: **L-13725
SUBJECT:
Authorization to Execute Lease between the City of Fort Worth and the Fort Worth Plaza Limited
Partnership for the Fort Worth International Center and to Waive Fees for Street Closures for Tenant
Improvements and Renovation of the Baker Building
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the City Manager to execute a lease between the City of Fort Worth and the Fort Worth Plaza
Limited Partnership beginning March 1, 2004, or upon completion of the tenant improvements, leasing
13,344 square feet in the Commerce Building at 307 West 7th Street for the Fort Worth International
Center. The rental rate is $12.00 per square foot per year for a five-year term, renewable for an additional
three years at the then prevailing market rate; and
2. Authorize the waiver of fees for street closures during the construction of the tenant improvements at
the Commerce Building and the renovation of the Baker Building.
DISCUSSION:
The Fort Worth International Center (FWIC) has been located in the Baker Building at 711 Houston Street in
downtown Fort Worth since April 1997. The City has a lease on the space, with extensions, valid until
March 31, 2008. XTO bought the Baker Building in 2003, and is in the process of renovating the building
and restoring the original fagade. XTO has notified the City that upon completion of the restoration project
they plan to fully occupy the building and have requested that the FWIC relocate. Comparable downtown
space was identified at the Commerce Building, 307 West 7th Street. Negotiations between the City, XTO
and the landlord of the Commerce Building have produced the following results:
The Commerce Building has agreed to the following:
13,344 square feet in the Commerce Building;
$12/square foot/year rental rate ($160,128);
5 year term;
Right to renew for an additional 3-year term at prevailing market rate;
10 free parking spaces in adjacent parking garage, and visit parking for$2/day;
10 additional parking spaces at$70/month ($25 below market rate);
Build-out of space estimated at$155,000.
XTO has agreed to the following:
Pay for all move expenses, including relocation of flags and flagpoles;
Pay for relocation of telephone and computer equipment;
$15,000 cash to replace print materials caused by relocation;
$20,000 cash to replace furniture and fixtures at Baker Building location;
$ 2,000 cash for move announcements for FWIC tenants;
Logname: 17FWIC LEASE Page 1 of 2
i
$16,090 reduction of rent at the Baker Building from September 2003 until move date;
$20,000 toward build-out costs.
The estimated value of the fee waivers is approximately $14,000. The successful execution of these
agreements will result in increased space at the FWIC.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that funds are available in the current operating budget, as appropriated, of
the General Fund.
TO Fund/Account/Centers FROM Fund/Account/Centers
GG01 537010 0174010 $160,128.00
Submitted for City Manager's Office bk Reid Rector (871-6266)
Originating Department Head: Tom Higgins (871-6192)
Additional Information Contact: Dorothy Wing (212-2665)
i;
i
Logname: 17FWIC LEASE Page 2 of 2