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Home My WebLink AboutContract 10723-R2 CONT ACT No. RENEWAL AGREEMENT CITY SECRETARY CONTRACT NO. 10723 FORT WORTH MEACHAM INTERNATIONAL AIRPORT FIXED BASE OPERATOR LEASE HANGAR 12-S This RENEWAL AGREEMENT ("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 situated in Tarrant, Denton, Parker and Wise Counties, Texas, acting by and through T.M. Higgins, its duly authorized Assistant City Manager, and AERO PLANE SHOP, INC. ("Lessee"), a Texas corporation acting by and through Clarence J. Sury, its duly authorized President. Recitals The following statements are true and correct and form the basis of this Agreement: A. On or about October 26, 1979, Lessor and William K. Leech, an individual, entered into City Secretary Contract ("CSC") No. 10723, a lease of unimproved land at Fort Worth Meacham International Airport ("Airport") known as Hangar 12-S Lease Site ("Leased Premises") for use as a fixed base operator site. B. Pursuant to the Lease, Lessee constructed improvements, including a conventional hangar facility, on the Leased Premises (collectively the "Hangar Facility"). Title to the Hangar Facility vested in Lessor upon the completion of its construction. C. On or about June 22, 1981, CSC No. 10723 was amended by CSC No. 11779 to add additional unimproved land to the Leased Premises to enlarge the Hangar Facility. CSC Nos. 10723 and 11779 shall hereafter collectively be referred to as the "Lease". D. Pursuant to CSC No. 17379, on or about September 12, 1989, Lessor consented to an assignment by William K. Leech to Aero Plane Shop, Inc., of all right, title and interest in the Lease. E. The initial term of the Lease expired September 30, 2004. The Lease provided that upon expiration of the initial term, Lessee shall have two consecutive rights of first refusal to lease the Leased Premises for consecutive terms of five years (each a"Renewal Term"). F. Pursuant to CSC No. 26725, on or about May 8, 2001, the Lease was amended to provide that during any Renewal Term, rental rates would be set at the unimproved ground rental rate in effect at the time of renewal. G. On or about September 22, 2004, CSC No. 30573 was executed granting the first five (5) year term of two consecutive rights of first refusal which expires September 30, 2009. OFFICIAL RECORD 311 i N CITY SECRETARY FT WORTH,TX H. In accordance with the provisions of the Lease, Lessee has properly exercised its option to renew the Lease for a final term of five (5) years. Agreement 1. The Lease is hereby renewed and extended for a final term of five (5) years, commencing on October 1, 2009 and expiring on September 30, 2014. 2. All other terms and conditions of the Lease shall remain in full force and effect. [Signature Pages Immediately Follow] 2 IN WITNESS WH RE F, the parties hereto have executed this Agreement in multiples on this the S- day of ,2000 CITY OF FORT WORTH: T.M. Higgins Assistant City Manager Date: 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. GIVEN UNDER MY HAND AND SEAL OF OFFICE this c. ' J day 200f. H. MARIA S.SANCHEZ NOTARY PUBLIC A STATE OF TEXAS My comm.Fxp.12-14-22009 Not Public in Aind for the§ftate of TexAs APPROVED AS TO FORM ATTEST: AND LEGALITY: By: a'� e By. �NN .� Charlene Sanders Mart4Henx Assistant City Attorney City Secretary M&C: FOFFICIAIL RECORD CRETARY 3 RTH,TX AERO PLANE SHOP, INC.: ATTEST: By: By: Name: Clarence& Surie Title: President Date: 07 ' mf/ ` 7 �� STATE OF TEXAS § COUNTY OFy✓u § BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared Clarence J. Sury, 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 Aero Plane Shop, Inc. and that s/he executed the same as the act of Aero Plane Shop, Inc. for the purposes and consideration therein expressed and in the capacity therein stated. GIVENDER MY HAND AND SEAL OF OFFICE this q day r I 200_ ' _. ,.zoo* °� ' LL�1FI N. JIPP �`: +; No!'ry Pei ;"a'e el Texas �•., • ��Camra i,,,"Expires ''F" S "`' EPT. 25, 2010 �``" Not Pu lic in and for Stat OFFICIAL RECORD CITY SECRETARY FT WORTH,TX 4 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 7/28/2009 DATE: Tuesday, July 28, 2009 REFERENCE NO.: **C-23681 LOG NAME: 55APS 12S RENEWAL 2 SUBJECT: Authorize the Execution of a Second Five Year Lease Renewal of City Secretary Contract No. 10723 with Aero Plane Shop, Inc., for Hangar 12-S at Fort Worth Meacham International Airport RECOMMENDATION: It is recommended that the City Council authorize the City Manager to execute the second five year lease renewal of City Secretary Contract No. 10723 with Aero Plane Shop, Inc., for Hangar 12-S at Fort Worth Meacham International Airport. DISCUSSION: On October 26, 1979, (M&C C-4815) a 25 year unimproved ground lease, known as City Secretary Contract (CSC) No. 10723, was executed for Lease Site 12-S at Fort Worth Meacham International Airport. CSC No. 10723 was amended and assigned by CSC Nos. 11779, 17379 and 26725. The unimproved ground lease consists of 9,285.8 square feet of land on which a 4,680 square foot hangar was constructed on the site known as Hangar 12-S. On May 8, 2001, (M&C C-18569) CSC No. 26725 was executed amending the adjustment of rentals during any renewal period. Due to substantial improvements and investment to the hangar, the lease was amended to read that the rental rate remain at the unimproved ground rate for any renewal periods. On September 22, 2004, (M&C C-20181) CSC No. 30573 was executed granting the first of two consecutive five year renewal options to CSC No. 10723. CSC No. 30573 expires September 30, 2009. On April 1, 2009, staff received a request from Mr. Clarence J. Sury, (Mr. Sury) President of Aero Plane Shop, Inc., to execute the second of the two five year lease renewal options in accordance with his lease agreement. This is the final renewal option available with CSC No. 10723. The second renewal will commence October 1, 2009, and expire September 30, 2014. In accordance with the current Schedule of Rates and Charges, this lease site of 9,285.8 square feet will generate revenue of$2,135.73 per year or$177.98 monthly. Mr. Sury is entitled to a monthly rent credit of $56.12 until October 2012 for repairs completed on the hangar. This will adjust the annual revenue generated to $1,462.29 or$121.86 monthly. The lease will provide for a five year term with no options to renew. The initial term of the lease will commence October 1, 2009. 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 agreement terms will be in accordance with City and Aviation Department policies. The property is located in COUNCIL DISTRICT 2. Logname: 55APS 12S RENEWAL 2 Page 1 of 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 Fu nd/Accou nt/C enters FROM Fund/Account/Centers PE_40 491352.0551101 $1,462.29 CERTIFICATIONS: Submitted for City Manager's Office by. Carl Smart (6525) Or!hating Department Head: Kent Penney (5403) Additional Information Contact: Bill Welstead (5402) _ATTACHMENTS 1. Accounting Info.pdf (CFW Internal) Logname: 55APS 12S RENEWAL 2 Page 2 of 2