On June 12, 2018, (M&C C-26726) City Council approved City Secretary Contract No. 50902, a Ground Lease Agreement with Daniel Griffith, for Lease Site 31N, at Fort Worth Spinks Airport.
Daniel Griffith has requested to increase the size of Lease Site 31N in order to facilitate new hangar construction. Lease Site 31N is comprised of 48,817 square feet of ground space and will increase to 78,229 square feet under the amended lease agreement, resulting in an additional $7,941.24 annual revenue. Total revenue received from this lease will be approximately $21,121.83 annually or $1,760.15 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 at the time the original lease was executed. Rental rates shall be subject to an increase on October 1st of this 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.
The Consent to Leasehold Deed of Trust will grant Mr. Griffith's lender, Pinnacle Bank, the right, subject to the previous lien, to operate as Lessee or secure another tenant in place of Mr. Griffith, if previously approved by the City Council, in the event Mr. Griffith defaults on his loan or his lease with the City of Fort Worth. The Lease Agreement prohibits Mr. Griffith from making any assignment of the lease or causing a lien to be made on improvements constructed on the leased premises without City Council approval. This type of transaction is routine for airport tenants and Staff has no objection to Mr. Griffith's request.
Fort Worth Spinks Airport is located in COUNCIL DISTRICT 6.
This M&C does not request approval of a contract with a business entity.