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Home My WebLink AboutOrdinance 13361Ordinance No. t0 AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE INSURANCE FUND IN THE AMOUNT OF $179,183.35 FROM AVAILABLE FUNDS FOR THE PURPOSE OF FUNDING A GROUND LEASE AGREEMENT AND COMMUNITY FACILITIES AGREEMENT WITH KIIVIBELL, INC., PROVIDING FOR A SEVERABILITY CLAUSE, MAKING THIS ORDINANCE CUMLJLATNE OF PRIOR ORDINANCES, REPEALING ALL PRIOR ORDINANCES IN CONFLICT HEREWITH, AND PROVIDING AN EFFECTNE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS. SECTION 1 That in addition to those amounts allocated to the various City departments for the Fiscal Year 1997-98 and in the Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the Insurance Fund in the amount of $179,183.35 from available funds for the purpose of funding a Ground Lease Agreement and Community Facilities Agreement with Kimbell, Inc. SECTION 2. That should any portion, section or part of a section of this ordinance be declared invalid, inoperative or void for any reason by a court of competent jurisdiction, such decision, opinion or judgment shall in no way impair the remaining portions, sections, or parts of sections of this ordinance, which said remaining provisions shall be and remain in full force and effect. SECTION 3 That this ordinance shall be cumulative of Ordinance No. 13111 and all other ordinances and appropriations amending the same except in those instances where the provisions of this ordinance are in direct conflict with such other ordinances and appropriations, in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed. SECTION 4 This ordinance shall take effect and be in full force and effect and after the date of its passage, and it is so ordained. APPROVED AS TO FORM AND LEGALITY Assistant City Attorne~ 2-~~- y~ Date o~ - / 7-~~ Adopted ~ - 17 -~~ Effective City of Fort Worth, Texas N!J' Ayar And Caunc~l ~ammunicAtian DATE REFERENCE NUMBER LOG NAME 55CFA PAGE 1 of 3 2/17/98 L-12192 SUBJECT GROUND LEASE AGREEMENT WITH KIMBELL, INC AT FORT WORTH SPINKS AIRPORT AND RELATED COMMUNITY FACILITIES AGREEMENT RECOMMENDATION It is recommended that the City Council: Adopt the attached supplemental appropriation ordinance increasing appropriations in the General Fund by $239,866 10 and decreasing the unreserved, undesignated fund balance by the same amount, and 2. Adopt the attached supplemental appropriation ordinance increasing estimated receipts and appropriations in the General Fund by $63,309 59 from available funds, and 3 Authorize the transfer of $303,175 69 from the General Fund to the Aviation Improvement Capital Projects Fund, and 4 Adopt the attached supplemental appropriation ordinance increasing the estimated receipts and appropriations in the Insurance Fund by $179,183 35 from available funds, and 5 Authorize the transfer of $179,183 35 from the Insurance Fund to the Aviation Improvement Capital Projects Fund, and 6 Authorize anon-interest bearing interfund loan from the General Fund to the Airport Operating Fund in the amount of $271,151 96, and 7 Adopt the attached appropriation ordinance increasing appropriations in the Airport Operating Fund by $271,151.96, and 8 Authorize the transfer of $271,151 96 from the Airport Operating Fund to the Aviation Improvement Capital Projects Fund, and- 9 Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Aviation Improvement Capital Projects Fund by $753,511 00, and 10 Authorize the City Manager to execute a Ground Lease Agreement and a Community Facilities Agreement with Kimbell, Inc. for the construction of T-hangars at Fort Worth Spinks Airport. DISCUSSION Kimbell, Inc., a locally owned and operated company based in Fort Worth, proposes to build T-hangars at Fort Worth Spinks Airport. !n Phase I, Kimbell, Inc. wi44 build 58 single-engine T-hangar units, 8 twin- engine T-hangar units, and an aircraft wash rack on a lease site of approximately 300,000 square feet. The site is ,located in the southwest corner of Fort Worth Spinks Airport. Although the Spinks Airport Master Plan Update recommends that the area be developed for conventional hangars and commercial aviation/industrial use, staff does not object to the proposed change in the Airport Layout Plan The change will be submitted to the Federal Aviation Administration (FAA) for approval FAA has been briefed on the proposed development. E ~~~ City of Fort Worth, Texas M,Ayor And Council C,ammunicAtian DATE REFERENCE NUMBER LOG NAME PAGE 2/17/98 L-12192 55CFA 2 of 3 SUBJECT GROUND LEASE AGREEMENT WITH KIMBELL, INC AT FORT WORTH SPINKS AIRPORT AND RELATED COMMUNITY FACILITIES AGREEMENT In October 1996, a windstorm destroyed a 6 T-hangar unit on the east side of the Airport. Following that damage, the City Building Official ordered that the remaining 52 T-hangars be demolished or vacated and locked by April 15, 1997, due to substandard conditions. In order to keep the remaining units occupied as long as possible, the City Council approved the expenditure of $46,000 00 in May 1997, to reinforce the hangars to handle greater wind loads until new T-hangars could be built. The City Building Official then extended the date of demolition to April 15, 1998 Due to the particular nature of this situation, and the City's desire to replace the substandard hangars, staff recommends the following terms and conditions of the proposed development and 30-year lease with Kimbell The total cost of the development is estimated to be $1,965,635 00, subject to actual bid award The City's estimated portion will be $753,511 00 Kimbell will be responsible for the remainder, estimated to be $1,212,124 00 2. Kimbell will lease approximately 300,000 square feet of unimproved ground at the current approved rate of $ 10 per square foot, totaling $30,000 00 per year for the first twenty years. Total revenue for the first 20 years will be $600,000 00 3 During years 21 through 25, Kimbell will pay $ 12 per square foot for unimproved ground Total revenue per year will be $36,000 00 Total revenue for years 21 through 25 will be $180,000 00 4 During years 26 through 30, Kimbell will pay $ 14 per square foot for unimproved ground Total revenue per year will be $42,000 00 Total revenue for years 26 through 30 will be $210,000 00 5 Total revenue back to the City over the initial 30 year term of the agreement will be $990,000 00, $236,489 00 over the original investment of $753,511 00 6 The City will pay for all taxiways and paved areas between the hangars except the T-hangar pads. Kimbell will pay for all T-hangar buildings and related costs, including the concrete pads on which they sit. 7 Kimbell will have the option to renew the lease for two successive five-year terms after the expiration of the initial thirty-year term at the hangar rental rates in effect at the time of the renewal Other terms and conditions for these renewal periods will be negotiated at that time. 8 Kimbell will have a right of first refusal on the property north from the initial development to the FBO hangar (but not including the FBO hangar), approximately 440,600 square feet and, for such right of first refusal, will pay at a rate of $ 01 per square foot. The portion of this section directly north of the original development, Phase II, will last for a period of one year Kimbell's right of first refusal to lease the portion immediately south of the FBO hangar, Phase III, will be for a period of two years. City of Fort Worth, Texas M'Ayar And Cauncil ~'ammunicAtian DATE REFERENCE NUMBER LOG NAME PAGE 2/17/98 L-12192 55CFA 3 of 3 SUBJECT GROUND LEASE AGREEMENT WITH KIMBELL, INC AT FORT WORTH SPINKS AIRPORT AND RELATED COMMUNITY FACILITIES AGREEMENT 9 The current tenants in the T-hangar that will be demolished will be given priority by Kimbell to lease the new hangars as they become available 10 The development plan will be subject to Federal Aviation Administration airspace review All other terms and conditions will conform to standard Aviation Department policies 11 The City and Kimbell will execute a Community Facilities Agreement that specifies the obligations of the parties with respect to the actual development of the premises leased by Kimbell under the proposed ground lease FISCAL INFORMATION/CERTIFICATION The Director of Fiscal Services certifies that upon approval of the above recommendations and adoption of the attached appropriation ordinance, funds will be available in the current operating budget, as appropriated, of the Aviation Improvement Capital Projects Fund Upon completion of this recommendation, the unreserved, undesignated fund balance of the General Fund will be $21,108,784 00, which is $6,898,484 00 below the 10% minimum reserve fund balance of $28,007,268 00 required by the City's Financia4 Management Policy Statements ...... .~ ~ .~ ~ l ~ ~ / ~ +~~,~.1 t , ~ ~r ,~y~{ G 1. .~±~~ ~,. !{;~ j '~'~~J~l~'~g. l.V~~ili1~P~t6~+firi ,W (. ._... _, _. ~¢ ,,. r r.. ` R"pa e~ ~~~~ ~ Ada ~ rt . ..,. o ... . .~.~~ ~~~~~~ ~~~~~ 3;36 {~F.~~;~~~ti..~~k~:~. ~;~~,13.~G~-:~. Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY Office by: to 1) GG01 538070 0909103 239,866.10 Ramon Guajardo 6140 2) GG01 481306 0134020 63,309.59 Originating Department Head. 2) GG01 538070 0909103 63,309.59 3) GC24 472001 055240438230 303,175.69 4 FE71 481082 0157100 179 183 35 ~~~Q~ , . 4) FE71 538070 0157100 179,183.35 ~~~~ ~~~~~~~ 5) GC24 472071 055240438230 179,183.35 8) GC24 472040 055240438230 271,151.96 FED 17' `~p~~ 7) PE40 538070 0554000 271,151.96 6) P 40 220001 0000000 271,151.96 9 G 24 472040 055240438230 753,511 0 ~tsg ~~~ 9) GC24 539120 055240438230 753,511.00 ~~'~~~°~'~ Lisa A. Pyles 5403 (from) 6 GG01 136040 0000000 271,151.96 Additional Information Contact: 10) GC24 539120 055240438230 753,511.00 8)P 40 538070 0554000 271,151.96 3) G 01 538070 0909103 303,175 69 Lisa A. Pyles 5403 5) FE71 538070 0157100 179 183.35