On June 14, 2006, Spinks West Side Associates (West Side) entered into an unimproved Ground Lease with mandatory improvements with the City (City Secretary Contract (CSC) No. 34065) (the Master Ground Lease) by Mayor and Council Communication (M&C C-20855), for Lease Site W-6, at Fort Worth Spinks Airport. On November 7, 2008 the City approved, as to form only, a Hangar Sublease and Exclusive Occupancy Agreement (Sublease) between West Side and Newstart Construction, Inc., (Newstart). Under the sublease Agreement, Newstart purchased the exclusive right to occupy and use Box Hangar A and Box Hangar B, which are comprised of approximately 7,440 square feet of ground space and includes two 3,600 square feet box hangar units. In addition to the purchase price, Newstart agreed to pay West Side, a prorata share of the payments due under the Master Ground Lease, payable by West Side to the City at a rate of $680.36 annually, payable monthly at the rate of $56.70 for Box Hangar A. For Box Hangar B, a rate of $658.81 annually, payable monthly at the rate of 54.90 per month. The term of both Sublease Agreements expire December 31, 2036. On September 5, 2013, Newstart and Tiger Aviation, LLC, (Tiger Aviation) entered into a Hangar Sublease Sale and Assignment Agreement. Tiger Aviation purchased the exclusive right to occupy and use of Box Hangar A. On April 5, 2017, Newstart and Tiger Aviation entered into a Hangar Sublease Sale and Assignment Agreement, through which Tiger Aviation purchased the exclusive right to occupy and use of Box Hangar B. Mr. Darrell Clendenen, manager of West Side, subsequently approached the City expressing his desire to terminate the Master Ground Lease Agreement. Mr. Clendenen asked if the City would be interested in purchasing the leasehold interests in these properties. Recognizing the good condition and value that the hangar facilities possess, the Aviation Department had the leasehold interests appraised to determine the appropriate value. Based on the appraised value, the Aviation Department and Mr. Clendenen agreed on a purchase price of $4,400,000.00 for all three of the aforementioned leasehold interests.
On December 6, 2016, (M&C C-28022) City Council approved Termination Agreements, CSC No. 34065-T1, CSC No. 36733-T1, and CSC No. 30198-T1 with West Side, effective January 31, 2017. Upon termination of Ground Lease Agreement CSC No. 34065, the City agreed to enter into a Hangar Sublease Estoppel, Non-Disturbance, and Assignment Agreement with Tiger Aviation, LLC, for Box Hangars A and B. The effective date of this Agreement is February 1, 2017 and expires December 31, 2036. The total revenue received from this Non-Disturbance Agreement will be approximately $1,339.17 annually or $116.60 per month. These revenues are based on a ground rental rate of $0.18 per square foot, in accordance with the Aviation Department's Schedule of Rates and Charges at the time of the Master Ground Lease Agreement. Rental rates shall be subject to an increase on October 1 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 apply for the ground rate starting on October 1, 2017 and every fifth year thereafter. Fort Worth Spinks Airport is located in COUNCIL DISTRICT 6.
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