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Home My WebLink About24-1576Docusign Envelope ID: 8962226C-2E9F4ECA-9699-D99BBF33CE3A ORDINANCE NO. 24-1576 AN ORDINANCE OF THE CITY OF DENTON APPROVING A SECOND AMENDMENT TO AIRPORT LEASE FOR GKY HOLDINGS 1, LLC COVERING PROPERTY AT 4858 LOCKHEED LANE, DENTON, TEXAS AT THE DENTON ENTERPRISE AIRPORT; AMENDING THE EXISTING AIRPORT LEASE; AUTHORIZING THE CITY MANAGER TO EXECUTE THE SECOND AMENDMENT OF AIRPORT LEASE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, on May 7, 2019, the City of Denton, a Texas home-rule municipal corporation (hereinafter the “City”), entered into that certain Airport Lease Agreement – Commercial Operator (the “Lease”) with 3KAIM Real Estate, LLC covering property located at 4858 Lockheed Lane, Denton, Texas, as more fully described in the Lease (the “Property”), at the Denton Enterprise Airport (“Airport”), which Lease was approved by the City pursuant to Ordinance No. 19-394; and WHEREAS, Ordinance No. 22-968 assigned the Lease from 3KAM Real Estate, LLC to DTO 4858 LLC and amended Sections 1.2.A, 8.1. A, and 9.2; and WHEREAS, Ordinance No. 23-1472 assigned the Lease from DTO 4858 LLC to GKY Holdings 1, LLC and amended section 3.2(A), 3.2(A)(c), and 9.2; and WHEREAS, Ordinance No. 23-2276 approved an amendment to Sections 8.4 and 8.5; and WHEREAS, Lessee has requested certain changes to the Lease to be incorporated to which City staff recommends approval; and WHEREAS, the Lease requires the written consent of the City for the proposed amendment to be effective, and Lessee has requested the City give such consent; and WHEREAS, at the August 14, 2024, meeting of the Airport Advisory Board, the Board recommended that the City approve the Second Amendment of Airport Lease for the Property by a vote of 5 to 0; and WHEREAS, the City Council deems it in the public interest to enter into a first amendment of Airport Lease giving consent to the amendment contemplated above; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS : SECTION 1. The findings and recitations contained in the preamble of this ordinance are incorporated herein by reference. SECTION 2. The amendment of Airport Lease for the Property in the form attached hereto as Exhibit A is hereby approved and made a part of this ordinance for all purposes. 1 Docusign Envelope ID: 8962226C-2E9F-4ECA-9699-D99BBF33CE3A SECTION 3. The City Manager, or their designee, is hereby authorized to execute the approved amendment of Airport Lease. SECTION 4. This ordinance shall become effective immediately upon its passage and approval. o r d i][1 a n c e vr a s ][]c1: t Tr d i n :IcT= P P a :JS sI L P rover:secondeU,"'V iS;::3'h- the following vote n - E Aye Nay Abstain Absent Mayor Gerard Hudspeth: Vicki Byrd, District 1 : Brian Beck. District 2: Paul Meltzer, District 3 : Joe Holland. District 4: Brandon Chase McGee, At Large Place 5 : Jill Jester, At Large Place 6: a Jx- &/ J PASSED AND APPROVED this the I? B d,y,f Scf kw.bd , 2024 GERARD HUDSPETH, MAYOR ATTEST: LAUREN THODEN, CITY SECRETARY BY:#mM_M-, APPROVED AS TO LEGAL FORM: MACK REINWAND, CITY ATTORNEY DocuSigned by: BY:ALarLLLLA IJA&Wb SECOND AMENDMENT TO AIRPORT LEASE AGREEMENT THE STATE OF TEXAS § § KNOW ALL MEN BY THESE PRESENTS COUNTY OF DENTON § This Second Amendment to Airport Lease Agreement (“Amendment”) is effective as of the ___ day of ______, 2024 (the “Second Amendment Effective Date”), by and between the City of Denton, a Texas home-rule municipal corporation (“Lessor”), and GKY Holdings 1, LLC, a Texas limited liability company, successor-in-interest to 3KAM Real Estate, LLC and DTO 4858 LLC (“Lessee”), and amends that certain Airport Lease Agreement, effective as of May 7, 2019, by and between Lessor and Lessee (the “Lease”). WITNESSETH: WHEREAS, the Lessor and Lessee now wish to amend the Lease to update the leasehold square footage; and WHEREAS, Ordinance No. 22-968 assigned the Lease from 3KAM Real Estate, LLC to DTO 4858 LLC and amended Sections 1.2.A, 8.1.A, and 9.2; and WHEREAS, Ordinance No. 23-1472 assigned the Lease from DTO 4858 LLC to GKY Holdings 1, LLC and amended section 3.2(A), 3.2(A)(c), and 9.2; and WHEREAS, Ordinance No. 23-2276 approved an amendment to Sections 8.4 and 8.5; and NOW, THEREFORE, in consideration of the promises and the mutual covenants contained in this Amendment, the parties hereto agree as follows: Section 1. The Lease is hereby amended to include the additional land as set forth on Attachment 1 totaling an additional 14,466.76 square feet (0.336 acres) and Exhibit A is amended to include such additional land. The Lease now includes an area of 2.04 acres and the Rent as set forth in Section 2.1 is amended to a revised annual rate of $34,729.42. Section 2. Capitalized terms not defined in this Amendment shall have the meaning ascribed to them in the Lease. Section 3. Except as amended by this Amendment, the provisions of the Lease shall remain in full force and effect. Docusign Envelope ID: 7CE94E9D-FA77-42BC-A46E-00DD33CEFC57Docusign Envelope ID: 55F85D1D-D80A-40E5-B5C5-625C4C73436D 17 September IN WITNESS WHEREOF, the parties have executed this Amendment as of the Second Amendment Effective Date. BY LESSOR: CITY OF DENTON, a Texas home-rule municipal corporation ____________________________________ SARA HENSLEY CITY MANAGER ATTEST: LAUREN THODEN, CITY SECRETARY BY: _________________________________ APPROVED AS TO LEGAL FORM: MACK REINWAND, CITY ATTORNEY BY: _________________________________ Leaseholder: GKY Holdings 1, LLC By: Airline Transport Professionals Holdings, Inc., By: _______________________ Derrick S. Dennis, President BOTH REVIEWED AND APPROVED as to financial and operational obligations and business terms. _________________________ Signature _________________________ Title _________________________ Department Date Signed: ______________ Docusign Envelope ID: 7CE94E9D-FA77-42BC-A46E-00DD33CEFC57 Airport 7/24/2024 Director of Airport Docusign Envelope ID: 55F85D1D-D80A-40E5-B5C5-625C4C73436D ////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////CALLED 331.94 ACRESCITY OF DENTONVOL. 305, PG. 324O.R.D.C.T.• 200.3'100.2'200.1'100.3'ONE STORYMETALBUILDINGALUMINUMMONUMENT FOUNDN 89°40'27" W 185.34'1/2" CIRF"KSA ENG"LOCKHEED LANEWILLIAM NEIL SURVEY,ABSTRACT NO. 970LOT 1BLOCK 1SOUTHEAST AIRPORTADDITIONDOC. NO. 2014-205P.R.D.C.T.CALLED 1.704 ACRESGKY HOLDINGS 1, LLCDOC. NO. 2023-93024O.R.D.C.T.LOT 1BLOCK 1SOUTHEAST AIRPORT ADDITIONDOC. NO. 2014-205P.R.D.C.T.5/8"CIRF"TNP"5/8"CIRF"TNP"S 75°13'02" W 332 .28 ' 31.46'241.71'S 89°51'04" W 324.10'63.2'21.9'MAG NAILSETMAG NAILSETPOB11.1'BOUNDARY OFCALLED 1.704 ACRESCONVEYED BYDOC. NO. 2023-93024O.R.D.C.T.N 00°33'01" E 275.55' S 00°33'01" W 273.17'307.08'S 5 4 °4 7 ' 5 5 " W 6 2 3 . 2 3 '5/8"CIRF"TNP"CIRS17.00'S 89°43'43" E 324.08'2.04 ACRES88,913 SQ. FT.NTER06/26/20242306.048-0206/27/2024JOB NUMBERDRAWN BYDATEREVISION222 South Elm StreetSuite: 200Denton, TX 76201940.222.3009www.eaglesurveying.comTX Firm # 10194177Eagle Surveying, LLCLEGAL DESCRIPTIONBeing a 2.04 acre tract of land out of the William Neil Survey, Abstract No. 970, situated in Denton County, Texas, being a portion of Lot 1, Block 1 of SoutheastAirport Addition, a subdivision of record in Document Number 2014-205 of the Plat Records of Denton County, Texas, together with that certain Certificate ofCorrection of record in Document Number 2014-117507 of said Official Records, also being all of that certain called 1.704 acre tract of land conveyed to GKYHoldings 1, LLC by Assignment and Assumption of Airport Lease of record in Document Number 2023-93024 of the Official Records of Denton County, Texas,and being more particularly described by metes and bounds as follows:BEGINNING at a mag nail set for the southwest corner hereof, from which a 1/2 inch iron rod with plastic cap stamped “KSA ENG” found at an interior ell cornerin the west line of said Lot 1 bears S75°13'02"W, a distance of 332.28 feet;THENCE, over and across said Lot 1, the following four (4) courses and distances:1.N00°33'01"E, a distance of 275.55 feet to a 1/2 inch iron rod with green plastic cap stamped "EAGLE SURVEYING" set for the northwest corner hereof,from which an aluminum monument found at an exterior ell corner in the west line of said Lot 1 bears S54°47'55"W, a distance of 623.23 feet;2.S89°43'43"E, passing at a distance of 17.00 feet a 5/8 inch iron rod with plastic cap stamped “TNP” found at the northwest corner of said 1.704 acre tract,and continuing on said course along the north line of said 1.704 acre tract a total distance of 324.08 feet to a 5/8 inch iron rod with plastic cap stamped“TNP” found at the northeast corner of said 1.704 acre tract and hereof;3.S00°33'01"W, along the east line of said 1.704 acre tract, passing at a distance of 241.71 feet a 5/8 inch iron rod with plastic cap stamped “TNP” found atthe southeast corner of said 1.704 acre tract, and continuing on said course a total distance of 273.17 feet to a mag nail set for the southeast corner hereof;4.S89°51'04"W, a distance of 324.10 feet to the POINT OF BEGINNING, and containing an area of 2.04 acres (88,913 square feet) of land.SCHEDULE B EXCEPTIONS OF COVERAGESubject to the easements as shown on Schedule "B" of the title commitment providedby Fidelity National Title Insurance Company with G.F. No.FT-44122-9001222301200-LE as listed below:10(f.) Easement(s) and rights incidental thereto, as granted in a document:Granted to: Texas Power and Light CompanyPurpose: As provided in said documentRecording Date: February 6, 1931Recording No: in Volume 236, Page 23, Deed Records, Denton County, TexasBLANKET EASEMENT - DOES AFFECT10(g.) Easement(s) and rights incidental thereto, as granted in a document:Granted to: Texas Power and Light CompanyPurpose: As provided in said documentRecording Date: March 3, 1949Recording No: in Volume 336, Page 578, Deed Records, Denton County, TexasUNABLE TO LOCATE BY DESCRIPTION IN RECORD DOCUMENT10(h.) Easement(s) and rights incidental thereto, as granted in a document:Granted to: Texas Power and Light CompanyPurpose: As provided in said documentRecording Date: January 10, 1947Recording No: in Volume 327, Page 569, Deed Records, Denton County, TexasUNABLE TO LOCATE BY DESCRIPTION IN RECORD DOCUMENT10(i.) Easement(s) and rights incidental thereto, as granted in a document:Granted to: Texas Power and Light CompanyPurpose: As provided in said documentRecording Date: October 17, 1940Recording No: in Volume 288, Page 30, Deed Records, Denton County, TexasUNABLE TO LOCATE BY DESCRIPTION IN RECORD DOCUMENTALTERATIONS AND ERRORSThis survey is the work product of the signing surveyor and may not be altered or modified in anymanner, except by the signing surveyor. Any alteration or modification performed to this survey byany party except for the signing surveyor will be prosecuted to the fullest extent of the law. Thesurveyor will not be responsible to the client for any typos or errors for which a correction is notrequested by the client within thirty days following the issuance of this survey.FLOOD NOTEThis property is located in Non-shaded Zone "X" as scaled from the F.E.M.A. Flood InsuranceRate Map dated April 18, 2011 and is located in Community Number 480194 as shown on MapNumber 48121C0355G. The location of the Flood Zone is approximate. For additional informationregarding Flood Zone designation, please contact 1-(877) FEMA MAP.SURVEYOR NOTES1.This survey is certified to Fidelity National Title Insurance Company, Fidelity National TitleAgency, Inc., GKY Holdings 1, LLC, and DTO 4858 LLC, a Delaware limited liability companyand is only valid for G.F. No. FT-44122-9001222301200-LE.2.The bearings shown on this survey are based on GPS observations utilizing the AllTerra RTKNetwork, North American Datum of 1983 (Adjustment Realization 2011).3.This document represents an accurate on the ground survey of 4858 Lockheed Lane in theCity of Denton, Denton County, Texas, on May 31, 2024.4.All Capped Iron Rods Set are 1/2 inch with green plastic cap stamped "EAGLE SURVEYING".1" = 60'06030LEGENDElectric BoxElectric MeterElectric TransformerGas MeterSanitary Clean OutSeptic LidSeptic PumpWater MeterWater ValveBoundary MonumentCIRFCapped Iron Rod FoundPOBPoint of BeginningP.R.D.C.T.Plat Records,Denton County, Texas••Chain Link FencePipe Rail FenceVOL.PG.VolumePageDOC. NO.Document NumberAir Conditioning UnitADA Parking SpaceSignCamera PoleConcreteCoverBuildingNo ParkingO.R.D.C.T.Official Records,Denton County, TexasLAND TITLE SURVEYCIRSCapped Iron Rod SetSURVEYORS CERTIFICATIONThis survey substantially complies with the currentTexas Society of Professional Surveyors Manual ofPractice requirements for a Category 1A, Condition II,Land Title Survey._________________________________________Caleb McCanliesDateR.P.L.S. # 70367036CALEB H. MCCANLIESPROFESSI ONA L R EGISTEREDST A TEOFTEXASLANDSURVEY O R06-27-2024ATTACHMENT 1Docusign Envelope ID: 7CE94E9D-FA77-42BC-A46E-00DD33CEFC57Docusign Envelope ID: 55F85D1D-D80A-40E5-B5C5-625C4C73436D