On August 28, 2007, by Mayor and Council Communication (M&C C-22344), City Council approved City Secretary Contract (CSC) 35803, an Unimproved Ground Lease Agreement with Newone Hangars, LLC (Newone), for Lease Site E20 at Fort Worth Spinks Airport. The Lease expires on July 31, 2037. On January 24, 2012, (M&C C-25415), City Council approved CSC-35803-A1 to amend the Unimproved Ground Lease Agreement to increase the total square feet from 79,600 to 158,735 total square feet. On January 23, 2015 the City of Fort Worth (City) executed a Consent to Assignment (CSC 35803-CA1), from Newone to Art Aero, LLC (Art Aero), for Lease Site E20. On October 2, 2015 the City of Fort Worth terminated the Consent to Assignment (CSC 35803-CA1), from Newone to Art Aero, for Lease Site E20.
Dumont Group, LLC (Dumont) approached Newone Hangars, LLC (Newone) to purchase the leasehold interest of Lease Site E20. Newone has agreed to the purchase and has requested to terminate the current Unimproved Ground Lease Agreement.
The Lease Site is comprised of 158,735 square feet of ground space and includes a 51,300 square feet hangar facility. The term of Hangar and Ground Lease is 40 years beginning January 1, 2017 and expiring December 31, 2056. At the current ground rate of $.27 per square foot per year, Lease Site E20 will generate estimated revenue of $42,858.45 per year or $3,571.54 per month. At year 32, a hangar rate will be included with the then current ground rate. The hangar rate will equal the then Fair Market Value, as determined by the City' s market analysis. In no case shall the hangar rate be less than the value assessed upon completion of a property appraisal completed by a third party vendor that has been approved and secured by the City.
Rental rates shall be subject to an increase on October 1st of any given year, based on the upward percentage change in the Consumer Price Index for the Dallas-Fort Worth Metropolitan area. At no time will the adjusted rate exceed the rate that is current in the Schedule of Rates and Charges. Five-year rate adjustments will be applied to the ground rate starting on October 1, 2022 and every fifth year thereafter. Fort Worth Spinks Airport is located in COUNCIL DISTRICT 6. |
