HomeMy WebLinkAboutContract 13160-A2 !Y SECRETA r
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AMENDMENT NO. 2 TO
CITY SECRETARY CONTRACT NO. 13160
AS PREVIOUSLY AMENDED AND ASSIGNED
GROUND LEASE AGREEMENT
FORT WORTH MEACHAM INTERNATIONAL AIRPORT
(HANGAR 10S-A)
This AMENDMENT NO. 2 ("Agreement") 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 State of Texas and ZIA CAPITAL,INC. ("Lessee"), a Texas company.
RECITALS
WHEREAS, Lessor and Barrett-Conatser Hangar Joint Venture ("Previous Lessee"),
previously entered into City Secretary Contract ("CSC") No. 13160, as amended by CSC No.
19263 and assigned by CSC No. 13360, a lease and use of real property known as Lease Site
10S-A and any improvements and facilities thereon ("Leased Premises") at Fort Worth
Meacham International Airport ("Airport").
WHEREAS, Lessor subsequently consented to the Assignment of the Lease by the
Previous Lessee to Lessee, via CSC No. 25932. CSC Nos. 13160, 19263, 13360 and 25932 are
hereinafter collectively referred to as the "Lease". The Lease is a public document on file in
Lessor's City Secretary's Office.
WHEREAS,the initial term of the Lease is for 30 years, terminating on June 30, 2013. The
parties wish to add two five-year Renewal Options to provide the Lessee a total potential lease
term of forty(40) years.
WHEREAS,due to the investment and improvements proposed for this Lease, the Lessee
has requested, and Lessor has agreed to continue to lease the property to Lessee at the
unimproved ground rate.
WHEREAS, Lessee currently leases 23,689 square feet of ground, and Lessee has
requested that it be allowed to release 5,370 square feet of grass area from the Leased Premises
that is not deemed necessary for Lessee's business purposes.
OFFICIAL RECORD
Meacham Airport
Zia CY SEC�ARI
Zia Capital,Inc. q,� It I
Amendment No.2 to CSC No. 13160 FTS WOIR'I H,TX
Page 1 of 5
02-24-09 PO4 :30 IN
AGREEMENT
NOW,THEREFORE, Lessor and Lessee hereby agree as follows:
1. Section 1. of CSC 11628 is hereby repealed and deleted in its entirety and replaced with the
following:
The leased premises, commonly known as Hangar 10S-A, or Lease Site
No. 12-4-R and 12-1, contain a total of 18,319 square feet and are as described on
the field notes marked Exhibit "A-Revised", said Exhibit being attached hereto and
incorporated herein for all purposes.
2. Section 2. of CSC 11628 is hereby repealed and deleted in its entirety and replaced with the
following:
2. Term of Lease
2.1 Initial Term
The initial term of this Lease shall commence on July 1, 1983 ("Effective
Date") and expire at 11:59 p.m. on June 30, 2013, unless terminated earlier as
provided herein.
2.2 Renewals
If Lessee performs and abides by all provisions and conditions of this Lease,
upon expiration of the Initial Term of this Lease, Lessee shall have two (2)
consecutive options to renew this Lease for two (2) successive terms of five years
each (each a "Renewal Term") in accordance with Paragraph 2.3. Lessee shall
notify Lessor in writing of its intent to exercise a respective option not less than 90
nor more than 180 days prior to the expiration of the term then in effect. If Lessee
does not exercise its option for a first Renewal Term within the time frame provided
herein, Lessee shall automatically and simultaneously forfeit its second option to
lease the Premises for a second Renewal Term, and Lessee shall no longer have any
rights or interest in the Premises following the expiration of the Initial Term.
2.3 Rates and Adjustments
On October 1 of each year of the Initial Term, and on October 1 st of each
year thereafter during any Renewal Term, Lessee's rental rate shall be subject to
CFW Meacham Airport
Zia Capital,Inc.
Amendment No.2 to CSC No. 13160
Page 2 of 5
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 agency (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; provided, however, that
Lessee's rental rates shall not exceed the then-current rates prescribed by Lessor's
published Schedule of Rates and Charges for the type or types of property at the
Airport similar to the type or types of property that comprise the Premises.
3. Section 10 of CSC 11628 is hereby amended to read as follows:
Lessee shall commence the payment of rent, upon execution of this
Amendment in accordance with this Section 10. Lessee shall pay Lessor rent in
the amount of$4,213.37 which is based on a rental rate $.23 per square foot on an
annual basis, and which will be payable in monthly installments of$351.11.
4. The statements set forth in the recitals above are true and correct and form the basis upon
which Lessor and Lessee have entered into this Agreement. The Lease is a public document on file
in Lessor's City Secretary's Office and is incorporated herein by reference for all purposes.
5. All other provisions and conditions of the Lease that are not expressly amended herein or
directly in conflict with the provisions and conditions of this Amendment shall remain in full
force and effect.
[Signature Pages Follow]
CFW Meacham Airport
Zia Capital,Inc.
Amendment No.2 to CSC No. 13160
Page 3 of 5
IN `iTNESS WHEREOF, the parties hereto have executed this Agreement in multiples
on this the U day of_ -,;1{, _Q i , 2009.
CITY OF FORT WORTH:
By: �
T.M. Higgins
Assistant City Manager
Date: Z/zo/09
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 T.M. Higgins, 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.
G— EN UNDER MY HAND AND SEAL OF OFFICE this �,ti:�C day
52009.
?o�R" MARIA S. SANCHEZ h)e4t
NOTARY PUBLIC
STATE OF TEXAS N)'
NotWy Public in and for the S to of Texas�OF tMy Comm.Exp.12-14-2009
APPROVED AS TO FORM ATTEST:
AND LEGALITY:
By: — By:
Charlene Sanders Marty Hen x
Assistant City Attorney City Secretary
M&C: C -233��
CFW Meacham Airport r�
Zia Capital,Inc. OFFICIAL RECORD
Amendment No.2 to CSC No. 13160 ^® p��
Page 4 of 5 CITY S/�l�RETAR i
FT.WORTH,TX
ZIA CAPITAL, INC.: ATTEST:
By: By:
Name: Dan E. Bruhl
Title: President
Date: ^ t O -- 2 eo0
STATE OF TEXAS §
COUNTY OF�g,..yy,u✓1— §
BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on
this day personally appeared Dan E. Bruhl, 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 Dan
E. Bruhl and that s/he executed the same as the act of Dan E. Bruhl for the purposes and
consideration therein expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this ��� day
_ ✓\,t,OL L4 , 2009.
LEAH' N.jExpiras
+ _ Notary?uGic,S
P,iy CcmrnrsiSEPI 25Notary P 1' in and for State
CFW Meacham Airport
Zia Capital,Inc.
Amendment No.2 to CSC No. 13160
Page 5 of 5
NCTCOG Page 1 of 1
Exhibit"A-Revised"
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DISCLAIMER N
This date has been compiled for NCTCOG.Various
NCTCOG Maps official and unofficial sources were used to gather this
WWW.dfwmapS.com information.Every effort was made to ensure the
accuracy of this date,however,no guarantee is given
iD or implied as to the accuracy of said data.
h4://www.dfwmaps.com/print.asp?Layers=on&AERIAL07=on 2/18/2009
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 2/17/2009
DATE: Tuesday, February 17, 2009 REFERENCE NO.: **C-23347
LOG NAME: 55ZIA 10
SUBJECT:
Authorize Amendment No. 2 to City Secretary Contract No. 13160, as Amended and Assigned, with Zia
Capital, Inc., for Hangar 10S-A at Fort Worth Meacham International Airport
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to authorize Amendment No. 2, to
provide two five-year renewal options to City Secretary Contract No. 13160, as amended and assigned,
with Zia Capital, Inc., for Hangar 10S-A, and the deletion of 5,370 square feet of grass land at Fort Worth
Meacham International Airport.
DISCUSSION:
On June 29, 1983, (M&C C-6911) City Council authorized the execution of City Secretary Contract (CSC)
No. 13160, a 30-year unimproved ground lease with Robert L. Barrett, M.D., which commenced on July 1,
1983, and expires June 30, 2013. This lease site includes 23,689 square feet of ground identified as
Hangar 10S-A at Fort Worth Meacham International Airport. A hangar of approximately 4,000 square feet
is located on the premises.
On October 17, 1983, (M&C C-7053) CSC No. 13360 was executed transferring all rights, title and interest
into the name of Barrett-Conatser Hangar Joint Venture. On August 14, 1992, (M&C C-13481) City
Council authorized the execution of CSC No. 19263 which amended and assigned a portion of ground to
another party.
On June 8, 2000, (M&C C-18006) City Council authorized Barrett-Conatser Hangar Joint Venture to
assign leasehold interest under CSC No. 13160 to Zia Capital, Inc., (Zia). Under CSC No. 25932, Zia
assumed all of the privileges and obligations associated with the original lease.
Staff has received a formal request from Dr. Dan Bruhl of Zia to amend and extend the term of the lease
by 10 years to provide for a total of 40 years. Zia did not have any renewal options built into the original
lease. Zia proposes to complete significant improvements to Hangar 10S-A and the addition of two five-
year options will help recoup their investment. Improvements proposed include ramp and taxiway asphalt
with concrete replacement, insulation of the hangar and roof repair. Based on the proposed
improvements, staff has no objections to adding two five-year renewal options to provide up to a 40-year
total lease term not to exceed the 40-year hangar lease term policy.
Dr. Dan Bruhl also requests to remove approximately 5,370 square feet of grassy land from his leased
premises. The grassy areas are not directly surrounding Zia's hangar and they are not deemed necessary
for business operations.
In accordance with the established Schedule of Rates and Charges, the adjusted lease site of 18,319
square feet at a rate of$.23 per square foot will generate revenue of$4,213.37 per year, or $351.11
T,egname- 557.TA 10 Page 1 of 2
monthly.
The lease will be a 30-year term with two five-year renewal options not to exceed past June 30, 2023.
Rental rates shall be subject to an increase on October 1st of any given year to reflect the upward
percentage change, if any, in the Consumer Price Index for the period since the last adjustment.
All other terms and conditions will remain unchanged and in effect.
The property is located in COUNCIL DISTRICT 2.
FISCAL INFORMATION / CERTIFICATION:
The Financial Management Services Director certifies that the Aviation Department will be responsible for
the collection and deposit of funds due to the City under this Agreement.
FUND CENTERS:
TO Fund/Account/Centers FROM Fund/Account/Centers
PE40 491352 0551101 $4213.R
CERTIFICATIONS:
Submitted for City Manager's Office bT. Carl Smart (6525)
Originating Department Head: Kent Penney (5403)
Additional Information Contact: Leah Jipp (5409)
ATTACHMENTS
No attachments found.
Logname: 55ZIA 10 Page 2 of 2