On October 24, 2017, the Department of Aviation (DOA) received a proposal from Daniel Griffith to enter into a new Ground Lease Agreement for Lease Site 31N at Fort Worth Spinks Airport.
Lease Site 31N is comprised of approximately 48,817 square feet of ground space and includes a 12,000 square foot hangar. As a condition of the new Ground Lease, the existing hangar facility will be demolished and fully reconstructed with a new, modern, updated hangar facility. Staff requests that the City Council authorize the execution of a new Ground Lease Agreement for a term of thirty years to commence on June 13, 2018 and expire on June 12, 2048.
As a part of the Agreement, Daniel Griffith will be required to complete other mandatory improvements for the facility, such as the maintenance and upkeep of aircraft apron concrete. If the use of the hangar is intended to have offices, a plan must be submitted for review and approval. All mandatory improvements must be approved by the DOA and completed within six months of execution of the Lease, unless otherwise communicated.
The total revenue received from this lease will be approximately $13,180.59 annually or $1,098.38 per month. Revenue is based on a ground rental rate of $0.27 per square foot, in accordance with the Aviation Department's Schedule of Rates and Charges and Lessor's market analysis. 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. Five-year rate adjustments will be applied to the ground rate starting on October 1, 2023 and every fifth year thereafter. At no time will the adjusted rate exceed the rate that is current in the Schedule of Rates and Charges.
Fort Worth Spinks Airport is located in COUNCIL DISTRICT 6.
This M&C does not request approval of a contract with a business entity.