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HomeMy WebLinkAboutContract 16491-A2 CONTRACT Nn SECOND AMENDMENT TO LEASE AGREEMENT (CITY SECRETARY CONTRACT NO. 16491) WHEREAS, the City of Fort Worth ("Lessor") entered into a lease agreement with General Dynamics Corporation, a Delaware corporation, dated June 27, 1988 (City Secretary Contract No. 16491) (the "Lease") for approximately two (2) acres of land described therein for Parking Lot #7 along Bomber Road, Fort Worth, TX for a Primary Term of five (5) years from July 1, 1988 to June 30, 1993; WHEREAS, Lockheed Martin Corporation, a Maryland corporation ("Lessee"), succeeded to the interest of General Dynamics Corporation as successor to Lockheed Corporation, the assignee of General Dynamics Corporation, and Lessee acknowledged its consent thereto; WHEREAS, by way of Lessee's notice dated April 15, 1993, Lessee exercised the First Renewal Term for a period of five (5) years from July 1, 1993 to June 30, 1998. Lessor and Lessee amended the Lease on July 9, 1998 and filed of record in the Tarrant County Real Property Records on September 1, 1998 as Instrument No. D198174992 ("First Amendment to Lease") to exercise the Second Renewal Term of the lease for a period of five (5) years from July 1, 1998 to June 30, 2003, with options to renew the Lease for up to two (2) additional periods of five (5) years each. By way of Lessee's notice dated April 29, 2003, Lessee exercised the Third Renewal Term for a period of five (5) years from July 1, 2003 to June 30, 2008. By way of Lessee's notice dated March 18, 2008, Lessee exercised the Fourth Renewal Term for a period of five (5) years from July 1, 2008 to June 30, 2013, for a lease rate of $2,900.00 per year, or $241.67 per month.. 0�-HUAL REI CORD 05-73_ A FT.WORTH,TX 1 WHEREAS, Lessor and Lessee desire to amend the lease to add one additional option to renew for a five (5) year period (the "Fifth Renewal Term") for a lease rate of $6,011.00 per year, or $500.92 per month, with a 3% annual escalation; NOW THEREFORE, in consideration of the mutual promises, obligations and the rentals set forth below, the parties agree as follows: 1. The Lessee shall have one (1) option to further renew the Lease for a period of five (5) additional years ("Fifth Renewal Term"), by providing no less than two (2) months prior written notice to Lessor. The Fifth Renewal Term shall commence July 1, 2013 and shall terminate on June 30, 2018. 2. Payment by Lessee to Lessor for the first year of the Fifth Renewal Term, said first year commencing July 1, 2013 and ending June 30, 2014 an annual lease rental of $6,011.00, or $500.92 per month. Thereafter, the rental shall increase 3% annually and annual and monthly rentals shall be as follows: July 1, 2014 through June 30, 2015: $6,191.33, $515.94 per month July 1, 2015 through June 30, 2016: $6,377.07, $531.42 per month July 1, 2016 through June 30, 2017: $6,568.38, $547.37 per month July 1, 2017 through June 30, 2018: $6,765.43, $563.79 per month 3. Notices to Lessee are to be sent to: Lockheed Martin Aeronautics P.O. Box 748 MZ: 6413 Fort Worth, TX 76101 Attn: Facilities Manager And to: Lockheed Martin Properties, Inc 100 South Charles Street Suite 1400 Baltimore, MD 21201 2 Attn: Lease Administration 4. All other terms and conditions of the Lease, as amended, remain unchanged and in full force and effect. EXECUTED this += day of 200), . LESSOR: City of Fort Worth, a Texas municipal corporation -Int; �iagtra, Fi'rsl Assistant City Manager Approved as to Form and Legality: S. C . �? Assistant City Attorney Attest: 'ion et Authoriaatioa . � bc� City Secret LESSEE: LOCKHEED MARTIN CORPORATION By: LMC Properties, Inc., Attorney in Fact under Irrevocable Power of Attorney dated November 11, 2004 By: Name: Mary atricia Barr Title: Manager, Real Estate OFFICIAL RECORD CITY SEECRETARY FT.WORTH,TX 3 THE STATE OF TEXAS § COUNTY OF TARRANT owSTA BEFORE ME, the undersigned authority, a Nota Public in and for the State and County aforesaid, on this day personally appeared , known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same as the act and deed of the City of Fort Worth, a municipal corporation of the State of Texas, and as the F--i;st-Assistant City Manager thereof, and for the purposes and consideration therein expressed, and in the capacity therein stated. E RE LANE ji" �o�i f; Notary Public, State of Texas My Commission Expires: o7-AG- ao// STATE OF MARY LAN1� § COUNTY OF—j ,' (L� t� § BEFORE ME, the undersigned authority, a Notary Public in and for the State and County aforesaid, on this day personally appeared MRI?Y PATP40ftt�,A-I?f`known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that she executed _the s as the act and deed of LMC Properties, Inc., and as the G Q V-kA,I hereof, and for the purposes and consideration therein ressed, and in the capacity therein stated. Notary Public, State of Maryland My Commission Expires: ►!l�III.AIM�. M. No""OVA* >�Mw 4 Page 1 of 2 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 3/3/2009 DATE: Tuesday, March 03, 2009 REFERENCE NO.: **L-14723 LOG NAME: 60BOMBER ROAD SUBJECT: Authorize Amendment No. 2 to Lease Agreement Between the City of Fort Worth and Lockheed Martin Corporation, City Secretary Contract No. 16491, for City-Owned Property Located Along Bomber Road in the Amount of$31,913.21 RECOMMENDATION: It is recommended that the City Council: 1. Authorize the City Manager to execute Amendment No. 2 in the amount of$31,913.21 to the Lease Agreement for the land utilized as parking lot No. 7 along Bomber Road for Lockheed Martin Corporation, City Secretary Contract No. 16491, to include one additional renewal option. The lease currently ends on June 30, 2013, and staff recommends an additional five years should be added, beginning July 1, 2013, and ending June 30, 2018. This will increase the annual rental rate to $6,011.00, including an annual escalation of three percent; and 2. Authorize the acceptance and recording of appropriate instruments. DISCUSSION: In 1988, the City of Fort Worth entered into a Lease Agreement with General Dynamics Corporation, later succeeded to Lockheed Martin Corporation, (LMCO) and amended the lease in 1998 to include five additional years with options to renew for two periods of five years each. The property under lease is used by LMCO for parking. All renewals under the original Lease Agreement have been exercised and LMCO seeks one additional five year renewal option with new terms as follows: . The annual lease amount payable to the City increases to $6,011.00; . The annual lease amount payable to the City increases at a rate of three percent each year of the five year period; and . No additional renewal terms are offered for this City-owned property. The land to be leased is described as: Lessee Legal Description Amount LMCO Approximately 2 Acres Along Bomber Road $31,913.21 The property is located in COUNCIL DISTRICT 7, Mapsco page 59. FISCAL INFORMATION / CERTIFICATION: The Financial Management Services Director certifies that the Water Department, Lake Worth http://apps.cfwnet.org/ecouncil/printmc.asp?id=11107&print=true&DocType=Print 5/13/2009 Page 2 of 2 Management Office, will be responsible for the collection and deposit of funds. FUND CENTERS: TO Fund/Account/Centers FROM Fund/Account/Centers FE70 442352 030001901000 $31 913.21 CERTIFICATIONS: Submitted for City Manager's Office by. Fernando Costa (6122) OriginatinqDepartment Head: S. Frank Crumb (8207) Additional Information Contact: Paul Bounds (8567) ATTACHMENTS 1. 60Bomber Road map.pdf (Public) 2. holly.doc (CFW Internal) http://apps.cfwnet.org/ecouncil/printmc.asp?id=11107&print=true&DocType=Print 5/13/2009