Official site of the City of Fort Worth, Texas |
City Council Agenda | |
COUNCIL ACTION: Approved on 12/12/2017 | |||||
DATE: | 12/12/2017 | REFERENCE NO.: | **L-16097 | LOG NAME: | 21AMFROLLSROYCE - REV |
CODE: | L | TYPE: | CONSENT | PUBLIC HEARING: | NO |
SUBJECT: | Authorize Amendment to Mayor and Council Communication M&C L-16046 to Change Rental Rate for the Lease Agreement with Rolls Royce North America, Incorporated or an Affiliate for a Portion of the Alliance Fort Worth Maintenance Base Located at 2112 Eagle Parkway (COUNCIL DISTRICT 7) |
RECOMMENDATION: |
It is recommended that the City Council authorize an amendment to M&C L-16046 to change the rental rate for the lease agreement with Rolls Royce North America, Incorporated or an affiliate to lease a portion of the Alliance Fort Worth Maintenance Base, to include the Turbine Engine Overhaul Building, the Test Cell and the Heat, Treat, Blast and Spray Shop, located at 2112 Eagle Parkway, Fort Worth, Texas 76177. |
DISCUSSION: |
On June 20, 2017 (M&C L-16046), Council approved the negotiation and execution of a lease Agreement with Rolls Royce North America, Incorporated for Engine Test Cell facility, Turbine Overhaul Building and the Heat, Treat, Blast and Spray Building and accompanying parking at the Alliance Maintenance Facility located at 2112 Eagle Parkway in Fort Worth. Rolls Royce agreed to lease the property in "as-is" condition, subject to final inspection of the property. The inspection revealed a number of issues with the facility, therefore, Rolls Royce has requested that the previously agreed upon rental rate be reduced to a market rate that more accurately reflects the condition of the property. The new rent compared to the rental rate approved in (M&C L-16046) is a reduction of $345,000.00. Below are the final agreed upon lease terms:
Months 1 -12: No Rent Months 13-24: $8,250.00 per month Months 25-60: $37,000.00 per month Months 61-120: $40,700.00 per month
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FISCAL INFORMATION/CERTIFICATION: |
The Director of Finance certifies that the Property Management Department is responsible for the fiscal administration of this lease which includes the collection and deposit of lease revenue and the payment of lease commissions. |
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Submitted for City Manager's Office by: |
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Originating Department Head: |
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Additional Information Contact: |
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ATTACHMENTS |
M and C map for RR 2100EagleParkway.pdf |
Rolls Royce form 1295.pdf |