Exhibit 10.9

 

LOGO [g713875g0305073549684.jpg]

 

 

 

ELEVENTH AMENDMENT

to the

COMPOSITE LEASE AGREEMENT

By and Between

MEMPHIS-SHELBY COUNTY AIRPORT AUTHORITY

and

FEDERAL EXPRESS CORPORATION

Effective as of January 1, 2019

 

 

 

--------------------------------------------------------------------------------

LOGO [g713875g0305073549684.jpg]

 

ELEVENTH AMENDMENT

TO THE COMPOSITE LEASE AGREEMENT

This ELEVENTH Amendment is made and entered into as of January 22, 2019 by and
between MEMPHIS-SHELBY COUNTY AIRPORT AUTHORITY (herein referred to as
“Authority”), a body politic and corporate, organized and existing under the
laws of the State of Tennessee, and FEDERAL EXPRESS CORPORATION (herein referred
to as “Tenant”), a corporation duly organized and existing under the laws of the
State of Delaware and authorized to do business in the State of Tennessee.

W I T N E S S E T H:

WHEREAS Authority and Tenant executed a “Composite Lease Agreement”, effective
January 1, 2007, which was modified by a First Amendment effective September 1,
2008; a Second Amendment effective June 1, 2009; a Third Amendment effective
July 1, 2009; a Fourth Amendment effective December 15, 2011; a Fifth Amendment
effective January 1, 2013; a Sixth Amendment effective July 1, 2014; a Seventh
Amendment effective April 1, 2016; an Eighth Amendment effective April 1, 2017;
a Ninth Amendment effective September 1, 2017; and a Tenth Amendment effective
May 1, 2018; collectively referred to herein as the “Composite Lease Agreement”;
and,

WHEREAS, a schedule identifying each parcel of real property the Authority
leases to Tenant is attached as hereto as EXHIBIT “A” to the Composite Lease
Agreement, and the schedule states the portion of the Term (as defined in the
Composite Lease Agreement) during which the lease of each parcel will be in
effect, and the rent that Tenant is subject to pay Authority for each parcel;
and

WHEREAS, the parties wish to amend the Composite Lease Agreement to remove
certain buildings, which are considered end of life and out-dated facilities, by
deleting a total of 160,372 square feet as part of Parcel 34 , originally
included as Parcel 17, but more particularly identified in EXHIBIT A, Note 15,
effective 1-1-2019, as these four affected buildings : (i) Hangar 6 ( Building
Number 2879); (ii) Hangar 7 (Building Number 2837); (iii) Administration
Building (Building Number 2861); and (iv) Boiler Room (Building Number 2838),
and these properties are highlighted and identified in and attached hereto as
EXHIBIT “B”, creating an annual reduction of $190,442.45 for the rental costs of
these four (4) identified buildings located on Parcel 34, effective January 1,
2019.

 

Composite Lease Agreement – Eleventh Amendment

Federal Express Corporation

--------------------------------------------------------------------------------

LOGO [g713875g0305073549684.jpg]

 

WHEREAS, Tenant acknowledges that the demolition and deconstruction of these
identified four buildings will cause Tenant to have specific responsibilities to
the Federal Aviation Administration (FAA) to assure that demolition and
documentation of the historic properties located thereon are carried out in
accordance with the parties’ Memorandum of Agreement, identified herein and
attached hereto as EXHIBIT “C”; and

WHEREAS, by letter dated October 16, 2018, identified herein and attached hereto
as EXHIBIT “D”, the Tennessee Historical Commission, State Historic Preservation
Office acknowledges that Stipulation II of the Memorandum of Agreement (EXHIBIT
“C”) has been fulfilled, and demolition and deconstruction can proceed of
(i) Hangar 6 (Parcel 34 Building No. 2879); (ii) Hangar 7 (Parcel 34 Building
No. 2837); (iii) the Administration Building (Parcel 34 Building No. 2861); and
(iv) a Boiler Room (Parcel 34 Building No. 2838); and

WHEREAS, now the Authority concurs and gives Tenant permission to proceed with
demolishing and deconstructing the same properties; and

NOW, THEREFORE, for and in consideration of the promises, covenants and
agreements hereinafter contained to be kept and performed by the parties hereto
and upon the provisions and conditions hereinafter set forth, Authority and
Tenant do hereby covenant and agree as follows:

SECTION 1. Definitions. Except as otherwise provided herein, and unless the
context shall clearly require otherwise, all words and terms used in this
ELEVENTH Amendment shall have the respective meanings given to them in the
Composite Lease Agreement for all purposes of this ELEVENTH Amendment.

SECTION 2. Modification of Composite Lease Agreement and the Applicable Rent.
The parties amend the Composite Lease Agreement to reflect a reduction of Parcel
34 as described in the attached Listing of Buildings shown on EXHIBIT “B”. As of
the Effective Date, the parties incorporate the Listing of Buildings of Parcel
34 to be part of EXHIBIT “A” to the Composite Lease Agreement. The inclusion of
Parcel 34 Listing of Buildings in EXHIBIT “A” will accomplish the following:

 

Composite Lease Agreement – Eleventh Amendment

Federal Express Corporation

--------------------------------------------------------------------------------

LOGO [g713875g0305073549684.jpg]

 

(a) Effective on the effective date, the Parcel 34 annual rent will be reduced
by an amount equal to the product achieved by multiplying the Hangar Office Area
of Parcel 34: 81,186 Square Feet by $1.465; and multiplying the Hangar Property
Area of Parcel 34: 79,186 Square Feet by $0.903 based on 1995 rental rates as
follows:

 

LOCATION    HANGAR   

OFFICE AREA

SQUARE FEET

   RATE      ANNUAL REDUCTION  

Bldg. 2879

   Hangar 6    13,328      

Bldg. 2837

   Hangar 7    16,000      

Bldg. 2861

   Administration Bldg.    50,077      

Bldg. 2838

   Boiler Room    1,781            

 

     

Total Office Areas

   81,186    $ 1.465      $ 118,937.49   LOCATION    HANGAR—OTHER PROPERTY SQ.
FT.    RATE      ANNUAL REDUCTION  

Bldg. 2879

   Hangar 6    45,119      

Bldg. 2837

   Hangar 7    34,067            

 

     

Total Other Property

   79,186    $ 0.903      $ 71,504.96              

 

 

 

Total Office Area and Hangar Property Area Annual Rent Reduction

      $ 190,442.45  

 

(b) The rent, as adjusted in accordance with the foregoing, will continue to be
subject to adjustment in accordance with the terms of Section 2.03(a)(i) of the
Composite Lease Agreement.

SECTION 3. Demolition and Deconstruction by Tenant

(a) Effective January 1, 2019, Authority hereby grants to Tenant for use by
Tenant and its servants, agents, employees and independent contractors, working
on or in connection with Tenant’s demolition and deconstruction of the
identified four buildings located on

 

Composite Lease Agreement – Eleventh Amendment

Federal Express Corporation

--------------------------------------------------------------------------------

LOGO [g713875g0305073549684.jpg]

 

Parcel 34, all necessary or appropriate rights of reasonable access, ingress and
egress to and from Parcel 34, and the right to do all such other things as may
be incidental to Tenant’s demolition and deconstruction of the identified four
buildings.

(b) Tenant shall obtain, at Tenant’s sole expense, all certificates and
approvals relating to Tenant’s demolition and deconstruction of the identified
four buildings located on Parcel 34.

(c) As part of its demolition and deconstruction of the identified four
buildings on Parcel 34 under this Section, Tenant shall (i) remain in compliance
with all applicable Environmental Laws and (ii) undertake, in compliance with
the rules and regulations of any Governmental Authority having jurisdiction over
the Parcel 34, all required cleanup activities with respect to environmental
conditions caused by, arising out of or resulting from its demolition and
deconstruction for the identified four buildings on Parcel 34.

SECTION 4. Remainder of Composite Lease in Effect. All other terms, provisions,
conditions, covenants and agreements of the Composite Lease shall continue in
full force and effect.

SECTION 5. Effective Dates of this ELEVENTH Amendment. This ELEVENTH Amendment
shall become effective as of January 1, 2019.

EXHIBIT “A”, EXHIBIT “B”, EXHIBIT “C”, and EXHIBIT “D”, attached hereto, shall
be incorporated herein by reference.

This remainder of this page intentionally left blank.

Signature page to follow.

 

Composite Lease Agreement – Eleventh Amendment

Federal Express Corporation

--------------------------------------------------------------------------------

LOGO [g713875g0305073549684.jpg]

 

IN WITNESS WHEREOF, the parties have caused their duly authorized
representatives to execute this ELEVENTH Amendment to the Composite Lease
Agreement.

 

MEMPHIS-SHELBY COUNTY AIRPORT AUTHORITY     FEDERAL EXPRESS CORPORATION By:   
/s/ Scott A. Brockman     By:    /s/ Wiley Johnson, Jr.   Scott A. Brockman,
A.A.E.     Title:   Managing Director, Real Estate and Airport Development  
President and Chief Executive Officer         Approved as to Content:       By:
  /s/ Forrest B. Artz  

 

 

 

 

 

  Forrest B. Artz         Vice President of Finance and Administration/CFO      
Approved as to Form and Legality:       /s/ Janet Shipman  

 

 

 

 

 

Janet Shipman       Associate Airport Counsel       Reviewed and Approved:      
/s/ Angela Washington  

 

 

 

 

 

Director of Properties      

 

Composite Lease Agreement – Eleventh Amendment

Federal Express Corporation

--------------------------------------------------------------------------------

EXHIBIT A to the Composite Lease Agreement as amended by the ELEVENTH Amendment
effective January 1, 2019.

 

                                2012   2013   2014   2015-17   2018—2019

PARCEL

NUMBER

 

FEDEX

LEASE

NUMBER

 

SUPPLEMENTAL

 

USE OR
LOCATION

 

PARCEL
ID

 

EFFECTIVE

DATE

 

SQUARE

FEET

 

EFFECTIVE

DATE

RATE

 

EFFECTIVE SEPTEMBER
2012

 

EFFECTIVE July 1, 2013

 

EFFECTIVE July 1, 2014

 

EFFECTIVE April 1, 2015

 

EFFECTIVE January 1, 2019

  RATES   MONTHLY   ANNUAL   ESCALATION (3)   RATES   MONTHLY   ANNUAL   RATES  
MONTHLY   ANNUAL   RATES   MONTHLY   ANNUAL   RATES   MONTHLY   ANNUAL

1

  07-0958   N/A   TAXIWAY N   N/A   2/1/2009   100,035   $0.1906   $0.1906  
$1,588.89   $19,066.67   CPI OR 13%   $0.2077   $1,731.41   $20,776.95   $0.2077
  $1,731.41   $20,776.95   $0.21   $1,731.41   $20,776.95   $0.21   $1,731.41  
$20,776.95

2

  07-0959   SUPPLEMENTAL 26   AMR FACILITIES/LANDLOCKED PARCELS   A-G   1/1/2007
  1,082,446   Varies (1)   Varies (1)   $28,533.41   $342,400.87   CPI OR 13%  
Varies (1)   $31,092.85   $373,114.23   Varies (1)   $31,092.85   $373,114.23  
Varies
(1)   $31,092.85   $373,114.23   Varies
(1)   $31,092.85   $373,114.23         N/A 5th Amendment to Composite Lease  
UNIMPROVED GROUND       11/1/2013
(9)   44,344   $0.2077   N/A   N/A   N/A   CPI OR 13%   0.2077 (9)   N/A   N/A  
$0.2077   $767.52   $9,210.25   $0.21   $767.52   $9,210.25   $0.21   $767.52  
$9,210.25

3

  07-0960   SUPPLEMENTALS   WEST RAMP                                          
                                              18, 19, 20, 21, 22 & 23  
UNIMPROVED GROUND   N/A   1/1/2007   3,111,647   $0.1525   $0.1906   $49,423.33
  $593,079.92   CPI OR 13%   $0.2077   $53,856.60   $646,279.19   $0.2077  
$53,856.60   $646,279.19   $0.21   $53,856.60   $646,279.19   $0.21   $53,856.60
  $646,279.19         22, 24 & 25   UNIMPROVED GROUND   N/A   1/1/2007   914,283
  $0.1525   $0.1906   $14,521.86   $174,262.34   CPI OR 13%   $0.2077  
$15,824.47   $189,893.67   $0.2077   $15,824.47   $189,893.67   $0.21  
$15,824.47   $189,893.67   $0.21   $15,824.47   $189,893.67         N/A 5th
Amendment to Composite Lease   UNIMPROVED GROUND       11/1/2013
(9)   2,744   $0.2077   N/A   N/A   N/A   CPI OR 13%   N/A   N/A   N/A   $0.2077
  $47.49   $569.92   $0.21   $47.49   $569.92   $0.21   $47.49   $569.92

4

  07-0961   N/A   TAXIWAY C   N/A   2/1/2009   731,098   $0.2400   $0.2400  
$14,621.96   $175,463.52   CPI OR 13%   $0.2615   $15,933.55   $191,202.60  
$0.2615   $15,933.55   $191,202.60   $0.26   $15,933.55   $191,202.60   $0.26  
$15,933.55   $191,202.60

5

  07-0962   SUPPLEMENTAL 13   UNIMPROVED APRON/GRACELAND RAMP   33   1/1/2007  
515,496   $0.1525   $0.1906   $8,187.79   $98,253.48   CPI OR 13%   $0.2077  
$8,922.24   $107,066.88   $0.2077   $8,922.24   $107,066.88   $0.21   $8,922.24
  $107,066.88   $0.21   $8,922.24   $107,066.88         SUPPLEMENTAL 17  
UNIMPROVED APRON/SIERRA RAMP   37   1/1/2007       $0.1525               CPI OR
13%                                                

6

  07-0963   AGREEMENT#92-0833   IRS/AOD   N/A   1/1/2007   2,248,286   N/A
(6)   N/A
(6)   $125,000.00   $1,500,000.00   15% (7)   N/A
(6)   $143,750.00   $1,725,000.00   N/A (6)   $143,750.00   $1,725,000.00   N/A
(6)   $143,750.00   $1,725,000.00   N/A
(6)   $143,750.00   $1,725,000.00

7

  07-0964   SOUTHWIDE#90-0242   GRAEBER ASSIGNMENT   23   1/1/2007   427,030  
N/A
(6)   N/A
(6)   $2,506.15   $30,073.80   CPI OR 13%   N/A
(6)   $2,730.95   $32,771.42   N/A
(6)   $2,730.95   $32,771.42   N/A
(6)   $2,730.95   $32,771.42   N/A
(6)   $2,730.95   $32,771.42

8

  07-0965   SOUTHWIDE ASGMT. #80-0223   EQUITABLE LIFE   24   1/1/2007   451,370
  N/A
(6)   N/A
(6)   $2,340.16   $28,081.92   CPI OR 13%   N/A
(6)   $2,550.07   $30,600.87   N/A (6)   $2,550.07   $30,600.87   N/A
(6)   $2,550.07   $30,600.87   N/A
(6)   $2,550.07   $30,600.87

9

  07—0966   SUPPLEMENTAL 15 (INTERNATIONAL PARK)   FEDEX PARKING—TCHULAHOMA   21
  1/1/2007   833,458   $0.2673   $0.2673   $18,565.28   $222,783.32   CPI OR 13%
  $0.2913   $20,230.58   $242,766.99   $0.2913   $20,230.58   $242,766.99  
$0.29   $20,230.58   $242,766.99   $0.29   $20,230.58   $242,766.99

10

  07-0967   SUPPLEMENTAL 16 (INTERNATIONAL PARK)   FEDEX CONSTRUCTION STORAGE
AREA   22A   1/1/2007
(2)   140,617   $0.2673   $0.2673   $3,132.24   $37,586.92   CPI OR 13%  
$0.2913   $3,413.21   $40,958.47   $0.2913   $3,413.21   $40,958.47   $0.29  
$3,413.21   $40,958.47   $0.29   $3,413.21   $40,958.47

11

  07-0968   SUPPLEMENTAL 13   UNIMPROVED GROUND/GSE STORAGE   36   1/1/2007  
187,217   $0.1525   $0.1906   $2,973.63   $35,683.56   CPI OR 13%   $0.2077  
$3,240.36   $38,884.38   $0.2077   $3,240.36   $38,884.38   $0.21   $3,240.36  
$38,884.38   $0.21   $3,240.36   $38,884.38

12

  07-0969   SUPPLEMENTAL 27   A-380 GSE STORAGE   N/A   12/01/07   187,618  
$0.1525   $0.1525   $2,384.31   $28,611.75   CPI OR 13%   $0.1662   $2,598.18  
$31,178.22   $0.1662   $2,598.18   $31,178.22   $0.17   $2,598.18   $31,178.22  
$0.17   $2,598.18   $31,178.22

13

  07-0970   SUPPLEMENTAL 23   A-380 RAMP   N/A   1/1/2007   1,897,879   $0.1220
  $0.1220   #REF!   #REF!   CPI OR 13%   $0.1329   $21,025.87   $252,310.49  
$0.1329   $21,025.87   $252,310.49   $0.13   $21,025.87   $252,310.49   $0.13  
$21,025.87   $252,310.49         SUPPLEMENTAL 25   A-380 GSE RAMP   N/A  
1/1/2007   319,113   $0.1525   $0.1906   #REF!   #REF!   CPI OR 13%   $0.2077  
$5,523.23   $66,278.76   $0.2077   $5,523.23   $66,278.76   $0.21   $5,523.23  
$66,278.76   $0.21   $5,523.23   $66,278.76

14

  07-0971   SUPPLEMENTAL 14   UNIMPROVED APRON/DE-ICING EQUIPMENT STORAGE   34  
1/1/2007   428,616   $0.1525   $0.1906   #REF!   #REF!   CPI OR 13%   $0.2077  
$7,418.52   $89,022.18   $0.2077   $7,418.52   $89,022.18   $0.21   $7,418.52  
$89,022.18   $0.21   $7,418.52   $89,022.18

15

  07-0972   N/A   SPRANKLE ROAD   N/A   1/1/2007   200,695   $0.0000   $0.0000  
$0.0000   $0.0000   N/A   $0.0000   $0.0000   $0.0000   $0.0000   $0.0000  
$0.0000   $0.0000   $0.0000   $0.0000   $0.0000   $0.0000   $0.0000

16

  07-0973   N/A   REPUBLIC ROAD   N/A   1/1/2007   113,179   $0.0000   $0.0000  
$0.0000   $0.0000   N/A   $0.0000   $0.0000   $0.0000   $0.0000   $0.0000  
$0.0000   $0.0000   $0.0000   $0.0000   $0.0000   $0.0000   $0.0000     07-0974
  SUPPLEMENTALS       0                                                        
                            1 Parcel 1, 2, 3, 4, 6 & 9 (UNIMP GROUND)      
1,2,3,4,6,9   1/1/2007   1,662,877   $0.1525   $0.1906   #REF!   #REF!   CPI OR
13%   $0.2077   $28,781.19   $345,374.26   $0.2077   $28,781.19   $345,374.26  
$0.21   $28,781.19   $345,374.26   $0.21   $28,781.19   $345,374.26         1
Parcel 1, 2, 7, 9 (IMP APRON)       1,2,7,9   1/1/2007   1,908,290   $0.1906  
$0.2383   #REF!   #REF!   CPI OR 13%   $0.2597   $41,294.68   $495,536.18  
$0.2597   $41,294.68   $495,536.18   $0.26   $41,294.68   $495,536.18   $0.26  
$41,294.68   $495,536.18         Parcel 5 (INTERNATIONAL PARK)       5  
1/1/2007   24,000   $0.2673   $0.3341   #REF!   #REF!   CPI OR 13%   $0.3641  
$728.14   $8,737.65   $0.3641   $728.14   $8,737.65   $0.36   $728.14  
$8,737.65   $0.36   $728.14   $8,737.65         1 Parcel 8 (INTERNATIONAL PARK)
  FUEL TANKS   8   1/1/2007   247,254   $0.2673   $0.3341   #REF!   #REF!   CPI
OR 13%   $0.3641   $7,501.45   $90,017.46   $0.3641   $7,501.45   $90,017.46  
$0.36   $7,501.45   $90,017.46   $0.36   $7,501.45   $90,017.46         1 & 8
Parcel 12 (INETRNATIONAL PARK)   ARTC TRAINING BUILDING   12   1/1/2007  
117,915   $0.2673   $0.3341   #REF!   #REF!   CPI OR 13%   $0.3641   $3,577.43  
$42,929.17   $0.3641   $3,577.43   $42,929.17   $0.36   $3,577.43   $42,929.17  
$0.36   $3,577.43   $42,929.17         1 & 8 Parcel 11 (INTERNATIONAL PARK)  
GAS STATION   11   1/1/2007   45,359   $0.2673   $0.3341   #REF!   #REF!   CPI
OR 13%   $0.3641   $1,376.15   $16,513.80   $0.3641   $1,376.15   $16,513.80  
$0.36   $1,376.15   $16,513.80   $0.36   $1,376.15   $16,513.80         8 Parcel
9 (INTERNATIONAL PARK)   SOUTH RAMP, COURTYARD, SOUTHGATES   9, 10, 17  
1/1/2007   1,586,172   $0.2673   $0.3341   #REF!   #REF!   CPI OR 13%   $0.3641
  $48,122.97   $577,475.69   $0.3641   $48,122.97   $577,475.69   $0.36  
$48,122.97   $577,475.69   $0.36   $48,122.97   $577,475.69         Parcel 10
(INTERNATIONAL PARK)   SOUTHEASTERN RAMP, NORTH SECONDARY,       1/1/2007  
70,200   $0.2673   $0.3341   #REF!   #REF!   CPI OR 13%   $0.3641   $2,129.80  
$25,557.63   $0.3641   $2,129.80   $25,557.63   $0.36   $2,129.80   $25,557.63  
$0.36   $2,129.80   $25,557.63

17

      Parcel 17 (INTERNATIONAL PARK)   NORTH INPUT, PRIMARY SORT,   17  
1/1/2007   4,333,659   $0.2673   $0.3341   #REF!   #REF!   CPI OR 13%   $0.3641
  $131,479.16   $1,577,749.90   $0.3641   $131,479.16   $1,577,749.90   $0.36  
$131,479.16   $1,577,749.90   $0.36   $131,479.16   $1,577,749.90            
SMALL PACKAGE SORT SYSTEM,                                                      
                                      INTERNATIONAL INPUT, HEAVY WEIGHT, EAST
RAMP                                                                            
                TAB-LINE MAINTENANCE   14   1/1/2007   556,334   $0.2673  
$0.3341   #REF!   #REF!   CPI OR 13%   $0.3641   $16,878.65   $202,543.84  
$0.3641   $16,880.10   $202,561.21   $0.36   $16,879.91   $202,558.92   $0.36  
$16,879.91   $202,558.92         10 Parcel 27A (IMP APRON)   PARCEL 27A   27  
1/1/2007   487,512   $0.1906   $0.2383   #REF!   #REF!   CPI OR 13%   $0.2597  
$10,549.58   $126,594.93   $0.2597   $10,549.58   $126,594.93   $0.26  
$10,549.58   $126,594.93   $0.26   $10,549.58   $126,594.93         11 Parcel
A & B West (UNIMP GROUND)   NORTH RAMP   27A &
27B   1/1/2007   527,676   $0.1525   $0.1906   #REF!   #REF!   CPI OR 13%  
$0.2077   $9,133.05   $109,596.63   $0.2077   $9,133.05   $109,596.63   $0.21  
$9,133.05   $109,596.63   $0.21   $9,133.05   $109,596.63         5 Parcel 16
(INTERNATIONAL PARK)       16   1/1/2007   796,312   $0.2673   $0.3341   #REF!  
#REF!   CPI OR 13%   $0.3641   $24,159.36   $289,912.33   $0.3641   $24,159.36  
$289,912.33   $0.36   $24,159.36   $289,912.33   $0.36   $24,159.36  
$289,912.33         23   GRAEBER ASSIGNMENT/TRUCKING OPERATION       1/1/2007  
261,460   $0.1029   $0.1286   #REF!   #REF!   CPI OR 13%   $0.1401   $3,053.32  
$36,639.83   $0.1401   $3,053.32   $36,639.83   $0.14   $3,053.32   $36,639.83  
$0.14   $3,053.32   $36,639.83         SUPPLEMENTAL 9 (INTERNATIONAL PARK)  
PARKING AREA   25   1/1/2007   18,933   $0.2673   $0.3341   #REF!   #REF!   CPI
OR 13%   $0.3641   $574.41   $6,892.91   $0.3641   $574.41   $6,892.91   $0.36  
$574.41   $6,892.91   $0.36   $574.41   $6,892.91

18

  07-0975   SUPPLEMENTAL 8 (INTERNATIONAL PARK)   DC-10 HANGAR (LAND)   15  
1/1/2007   552,730   $0.2673   $0.2673   #REF!   #REF!   CPI OR 13%   $0.2913  
$13,416.45   $160,997.43   $0.2913   $13,416.45   $160,997.43   $0.29  
$13,416.45   $160,997.43   $0.29   $13,416.45   $160,997.43

18A

  07-0976   BUILDING HAVING AN AREA OF 72,378 SQ FT & OTHER IMPROVEMENTS   DC-10
HANGAR (BUILDING)       9/1/2012
(4)   72,378   $1.2600   $1.2600   $7,599.69   $91,196.28   CPI OR 13%   $1.3730
  $8,281.38   $99,376.59   $1.3730   $8,281.38   $99,376.59   $1.37   $8,281.38
  $99,376.59   $1.37   $8,281.38   $99,376.59         CONSTRUCTED ON PARCEL 18  
                                                                               
 

19

  07-0977   SUPPLEMENTAL 8 (INTERNATIONAL PARK)   ENGINE SHOP   13 & 18  
1/1/2007   418,016   $0.2673   $0.2673   #REF!   #REF!   CPI OR 13%   $0.2913  
$10,146.53   $121,758.37   $0.2913   $10,146.53   $121,758.37   $0.29  
$10,146.53   $121,758.37   $0.29   $10,146.53   $121,758.37

20

  07-0978   SUPPLEMENTAL 27   WEST SIDE OF TANG   N/A   3/1/2008   108,051  
$0.1525   $0.1525   #REF!   #REF!   CPI OR 13%   $0.1662   $1,496.32  
$17,955.83   $0.1662   $1,496.32   $17,955.83   $0.17   $1,496.32   $17,955.83  
$0.17   $1,496.32   $17,955.83

21

  07-0979   SUPPLEMENTAL 7   DEMOCRAT VEHICLE PARKING   19   1/1/2007  
1,812,363   $0.1525   $0.1906   #REF!   #REF!   CPI OR 13%   $0.2077  
$31,368.50   $376,422.03   $0.2077   $31,368.50   $376,422.03   $0.21  
$31,368.50   $376,422.03   $0.21   $31,368.50   $376,422.03

22

  07-0980   SUPPLEMENTAL 9   DEMOCRAT VEHICLE PARKING   20   1/1/2007   491,127
  $0.1525   $0.1906   #REF!   #REF!   CPI OR 13%   $0.2077   $8,500.46  
$102,005.52   $0.2077   $8,500.46   $102,005.52   $0.21   $8,500.46  
$102,005.52   $0.21   $8,500.46   $102,005.52

23

  07-0981   N/A   TAXIWAY SIERRA       2/1/2009   248,711   $0.2400   $0.2400  
#REF!   #REF!   CPI OR 13%   $0.2615   $5,420.41   $65,044.89   $0.2615  
$5,420.41   $65,044.89   $0.26   $5,420.41   $65,044.89   $0.26   $5,420.41  
$65,044.89

24

  07-0982   N/A   SORT FACILITY       9/1/2009
(5)   292,000   $1.2600   $1.2600   $30,660.00   $367,920.00   CPI OR 13%  
$1.3730   $33,410.20   $400,922.42   $1.3730   $33,410.20   $400,922.42   $1.37
  $33,410.20   $400,922.42   $1.37   $33,410.20   $400,922.42

25

  07-0983   N/A   DEMOCRAT PARKING AREA       12/15/11
(8)   36,128   $0.1906   $0.1906   $573.83   $6,885.99   CPI OR 13%   $0.2077  
$625.31   $7,503.67   $0.2077   $625.31   $7,503.67   $0.21   $625.31  
$7,503.67   $0.21   $625.31   $7,503.67

26

  07-0985   N/A   CORPORATE AVIATION HANGAR (BUILDING)       7/1/2014   35,070  
$1.4238   N/A   N/A   N/A   CPI OR 13%   N/A   N/A   N/A   $1.4238   $4,161.06  
$49,932.67   $1.42   $4,161.06   $49,932.67   $1.42   $4,161.06   $49,932.67    
        CORPORATE AVIATION HANGAR (LAND)       7/1/2014   161,334   $0.0000  
N/A   N/A   N/A   N/A   N/A   N/A   N/A   N/A   N/A   N/A   N/A   N/A   N/A  
N/A   N/A   N/A

27

  07-0984   N/A   HANGAR 11 (BUILDING)       7/1/2014   58,265   $1.4238   N/A  
N/A   N/A   CPI OR 13%   N/A   N/A   N/A   $1.4238   $6,913.14   $82,957.71  
$1.42   $6,913.14   $82,957.71   $1.42   $6,913.14   $82,957.71         N/A  
HANGAR 12 (BUILDING)       7/1/2014   117,306   $1.4238   N/A   N/A   N/A   CPI
OR 13%   N/A   N/A   N/A   $1.4238   $13,918.36   $167,020.28   $1.42  
$13,918.36   $167,020.28   $1.42   $13,918.36   $167,020.28             HANGARS
11 AND 12 (LAND)       7/1/2014   1,290,083   $0.0000   N/A   N/A   N/A   N/A  
N/A   N/A   N/A   N/A   N/A   N/A   N/A   N/A   N/A   N/A   N/A   N/A

28

  07-0986   N/A   EAST GSE RAMP       7/1/2014
(10)   1,000,681   $0.1741   N/A   N/A   N/A   CPI OR 13%   N/A   N/A   N/A  
$0.1741   $14,518.21   $174,218.56   $0.17   $14,518.21   $174,218.56   $0.17  
$14,518.21   $174,218.56

29

      7TH AMENDMENT   COLD CHAIN STORAGE PARKING       4/1/2016
(11)   29,174   $0.2077   N/A   N/A   N/A   N/A   N/A   N/A   N/A              
$0.2077   $504.95   $6,059.44   $0.2077   $504.95   $6,059.44

30

      8TH AMENDMENT   3505 TCHULAHOMA ROAD (BUILDING)       4/1/2017
(13)   38,345   $2.8500                                           $2.8500  
$9,106.94   $109,283.25   $2.8500   $9,106.94   $109,283.25         8TH
AMENDMENT   3505 TCHULAHOMA ROAD (IMPROVED GROUND)       4/1/2017
(13)   58,810   $0.2597                                           $0.2597  
$1,272.75   $15,272.96   $0.2597   $1,272.75   $15,272.96         8TH AMENDMENT
  3505 TCHULAHOMA ROAD (UNIMPROVED GROUND)       4/1/2017
(13)   64,702   $0.2077                                           $0.2077  
$1,119.88   $13,438.61   $0.2077   $1,119.88   $13,438.61

31

      8TH AMENDMENT   3318 WINCHESTER ROAD (BUILDING)       8/1/2017
(12)   113,461   $2.8500                                           $2.8500  
$26,946.99   $323,363.85   $2.8500   $26,946.99   $323,363.85         8TH
AMENDMENT   3318 WINCHESTER ROAD (IMPROVED GROUND)       8/1/2017
(12)   196,782   $0.2597                                           $0.2597  
$4,258.69   $51,104.29   $0.2597   $4,258.69   $51,104.29         8TH AMENDMENT
  3318 WINCHESTER ROAD (UNIMPROVED GROUND)       8/1/2017
(12)   164,498   $0.2077                                           $0.2077  
$2,847.19   $34,166.23   $0.2077   $2,847.19   $34,166.23

32

      9TH AMENDMENT   2860 SOUTHWIDE DR (UNIMPROVED GROUND) GSE Storage      
09/01/2018
(14)   72,172   $0.2077                                                      
$0.2077   $1,249.18   $14,990.12

33

      10TH AMENDMENT   GOLDEN TRIANGLE RAMP AREA       5/1/2018   698,965  
$0.2077                                                       $0.2077  
$12,097.92   $145,175.03

34

      11TH AMENDMENT   MSCAA DEMO HANGARS/OFFICE BLDGS       1/1/2019
(15)   -81,186   $1.4650                                                        
  -$9,911.46     -$118,937.49               MSCAA DEMO HANGAR PROPERTY      
1/1/2019
(15)   -79,186   $0.9030                                                        
  -$5,958.75     -$71,504.96  

35

      12TH AMENDMENT   GLYCOL TANK STORAGE AREA                                
                                                                               
                Totals   $781,847.02   $9,382,164.23       $822,174.25  
$9,866,090.99   Totals   $868,231.45   $10,418,777.34   Totals   $865,708.34  
$10,388,500.04

Note 1:

 

(a)

Hangar 26 has been removed from Parcel 2 and, effective July 1, 2009, rent for
Parcel 2 has been reduced by $1,322.50 per month, $15,870.00 per year.

(b)

As of December 14, 2010, the date of Tenant’s beneficial occupancy of the
Replacement Hangar, as defined in the Third Amendment to the Composite Lease
Agreement, the annual rent will be reduced by $44,246.00 ($3,687.17 monthly).
The rent rate for the 35,000 square foot Replacement Hangar will be $0.1906.

(c)

As of December 14, 2010, the date of Tenant’s benefical occupancy of renovated
Hangars 24, 25 and 27, the combined annual rent for these Hangars will be
reduced by $23,458.05 (30% of $78,193.49).

 

Note 2:

In accordance with the Second Amendment to the Composite Lease Agreement, Parcel
10 will not be part of the demised premises between May 1, 2010, and
December 31, 2011, and no rent will be payable with respect to that Parcel
during that time period.

 

Note 3:

Refer to Section 2.03(a)(i) of the Composite Lease Agreement for a further
description of the rent adjustment summarized in this column.

 

Note 4:

The Effective Date is subject to the operation and effect of Section 1.04(b) of
the Composite Lease Agreement. When the Effective Date occurs, the rent for
Parcel 18A will be calculated based upon a rental rate of $1.26 per square foot
of building footprint area.

 

Note 5:

The Effective Date is subject to the operation and effect of Section 1.04(b) of
the Composite Lease Agreement. When the Effective Date occurs, the rent for
Parcel 24 will be calculated based upon a rental rate of $1.26 per square foot
of building footprint area.

 

Note 6:

For Parcels 6, 7, and 8, the monthly rent for each is an amount previously
agreed upon by the Parties, and is not calculated on any applicable current
rate.

 

Note 7:

Section 2.03(a)(i) of the Composite Lease Agreement will govern the escalation
of the rent for Parcel 6 beginning July 1, 2018.

 

Note 8:

In accordance with the terms of the 4th Amendment to the Composite Lease, rent
for Parcel 25 began to accrue March 1, 2012 at the rate of $0.1906

 

Note 9:

In accordance with the terms of the 5th Amendment to the Composite Lease, rent
for the unimproved property that the 5th Amendment adds to Parcels 2 and 3 will
begin to accrue on November 1, 2013 at the July 1, 2013 rental rate for
unimproved property. (See Notes 3 and 7)

 

Note 10:

Rate agreed upon by the parties and as defined in the 6th Amendment to the
Composite Lease

 

Note 11:

Parcel 29 adds the lot used for Cold Chain Storage Parking effective April 1,
2015 and should be added.

 

Note 12:

Parcel 30 adds the office building and warehouse at 3505 Tchulahoma Road
effective April 1, 2017. Rent will begin to accrue on the earlier of the Parcel
30 Substantial Completion Date or April 1, 2018.

 

Note 13:

Parcel 31 adds the maintenance facility at 3318 Winchester Road effective
September 1, 2017. Rent will begin to accrue on the earlier of the Parcel 31
Substantial Completion Date or September 1, 2018.

 

Note 14:

Parcel 32 adds GSE equipment and storage location at 2860 Southwide Dr. near the
parcels 31 & 32. Rent commencing sooner of date of beneficial occupancy or
Feburary 1, 2018.

 

Note 15:

Parcel 34—(Parcels ORIGINALLY included in Parcel 17): Annual credit due to
demolition of (Hangar 6 13,328 sf Hangar 7 16,000 sf, Admin Bldg 50,077 sf and
Boiler room 1,781sf at old may 1995 rate of $1.1.465) and Hangar 6 & & property
at 79,186 sq f at old may 1995 ratre $0.903)

 

RATE & RATE ESCALATION

     7/1/2008        7/1/2013        7/1/2018  

IMPROVED GROUND

     N/A      $ 0.2597      $ 0.2600  

UNIMPROVED GROUND

     N/A      $ 0.2077      $ 0.2100  

--------------------------------------------------------------------------------

LOGO [g713875dsp009.jpg]

EXHIBIT B – LISTING OF BUILDINGS

--------------------------------------------------------------------------------

LOGO [g713875dsp010.jpg]

--------------------------------------------------------------------------------

EXHIBIT “C”

Memorandum of Agreement between FAA, Tennessee Historical Commission, MSCAA and
Federal Express effective September 24, 2018

MEMORANDUM OF AGREEMENT

AMONG FEDERAL AVIATION ADMINISTRATION, TENNESSEE

HISTORICAL COMMISSION, MEMPHIS-SHELBY COUNTY AIRPORT

AUTHORITY, AND FEDERAL EXPRESS

REGARDING THE FEDERAL EXPRESS TRANSFORMATION PROJECT AT

MEMPHIS INTERNATIONAL AIRPORT

WHEREAS, the Federal Aviation Administration (FAA) has determined that the
demolition of 24 outdated structures constitutes a federal undertaking because
of the change to the Airport Layout Plan (ALP); and

WHEREAS, Federal Express (FedEx) proposes to deconstruct or demolish 24 outdated
structures that are located in the middle of its 880-acre Hub at Memphis
International Airport (MEM) in order to construct several new facilities.

WHEREAS, the Federal Aviation Administration (FAA) has determined that the
demolition of these structures constitutes a federal undertaking under
Section 106 of the National Historic Preservation Act because of the change to
the Airport Layout Plan (ALP) that will be necessitated by the proposed
development; and

WHEREAS, FAA has defined the undertaking’s Area of Potential Effects as the
project site, as described in the Attached Historic and Architectural Assessment
and Section 4(f) Evaluation; and

WHEREAS, FAA has determined that the undertaking will have an adverse effect on
the Administration Building (2861), Hangar 6 (2879), Hangar 7 (2837), and Boiler
Room (2838) (collectively, the “Hangar Complex”), which are eligible for listing
in the National Register of Historic Places, and has consulted with the
Tennessee Historic Preservation Officer (SHPO) pursuant to 36 CFR Part 800, the
regulations implementing Section 106 of the National Historic Preservation Act
(16 U.S.C. § 470f); and

WHEREAS, the Memphis-Shelby County Airport Authority (Authority), the operator
of the airport and the applicant for the approval of the project, has
participated in the consultation process, has specific responsibilities to carry
out the terms of this Memorandum of Agreement (Memorandum) regarding the effects
of the undertaking on historic properties and FAA has invited them to sign this
Memorandum as an invited signatory; and

WHEREAS, FedEx, the lessee of the airport property where the demolition of the
buildings will take place, has specific responsibilities to make sure that the
demolition and documentation of the historic properties are carried out in
accordance with this Memorandum, and FAA has invited them to sign this
Memorandum as an invited signatory.

 

1

--------------------------------------------------------------------------------

WHEREAS, the Shelby County Historian, Memphis Area Association of Governments,
Association for the Preservation of Tennessee Antiquities, Memphis and Shelby
County Division of Planning and Development, Center for Southern Folklore,
Shelby County Historical Commission, West Tennessee Historical Society, Memphis
Heritage, Inc., and Memphis Landmarks Commission have been invited to consult;
and no parties wished to become a consulting party; and

WHEREAS, in accordance with 36 CFR § 800.6(a)(l), FAA has notified the Advisory
Council on Historic Preservation (ACHP) of its adverse effect determination with
specified documentation, and the ACHP has chosen not to participate in the
consultation; and

NOW THEREFORE, The FAA, the Tennessee Historical Commission (Commission),
Fed-Ex, and the Authority agree that the undertaking will be implemented in
accordance with the following stipulations in order to take into account the
potential effect of the undertaking on historic properties, and that these
measures shall constitute full, complete, and adequate mitigation measures under
the National Historic Preservation Act and the implementing regulations of the
Advisory Council on Historic Preservation (Advisory Council).

STIPULATIONS

The FAA, through coordination with the Authority, Fed-Ex, and the Commission,
will ensure that the following measures are carried out:

STIPULATION I. PROFESSIONAL QUALIFICATIONS

All historic preservation work carried out pursuant to this Memorandum will be
performed by or under the direct supervision of a person or persons meeting at a
minimum the Secretary of the Interior’s Professional Qualification Standards (48
FR 44738-9). The FAA will consult with the SHPO to determine and ensure that the
preservation professionals responsible for carrying out the historic and
archaeological documentation covered by this Memorandum meet the Secretary of
Interior’s Standards and the professional requirements set forth in the
Tennessee SHPO Standards and Guidelines for Archaeological Resource Management
Studies (Revised 2008).

STIPULATION II. DOCUMENTATION

During the Historic and Architectural Assessment and Section 4(f) Evaluation,
four sites including the Administration Building (2861), Hangar 6 (2879), Hangar
7 (2837), and Boiler Room (2838), within the Area of Potential Effects were
identified as eligible for the National Register of Historic Places. FAA and the
Authority have determined that it is not possible to complete the project
without impacting these sites.

1. FedEx shall mitigate the adverse effects to the potentially eligible
structures caused by their demolition through the completion of documentation
that meets Historic American Buildings Survey (HABS) Level II documentation
standards

 

2

--------------------------------------------------------------------------------

for the eligible structures as requested by the Commission. Utilization of HABS
standards is understood to meet the Secretary of the Interior’s Standards for
Historical Documentation as they apply to architectural, engineering, and
landscape documentation.

2. FedEx will provide documentation to the Commission meeting HABS Level II
documentation standards. This documentation will include a digital copy of the
relevant drawings and photographs. Drawings will include floor plans for the
four structures included in the Hanger Complex.

It is understood that peeling of the structures within the Hanger Complex is not
necessary and that the structures will be documented in their current state of
use. The above mentioned documentation will be provided to the Commission by
October 12, 2018. HABS documentation will be reviewed and approved by the
Commission prior to demolition. No demolition activities will occur prior to the
Commission providing written approval.

3. FedEx, with the assistance of the Authority, will develop and provide an
architectural history and context report (AHC) for the airport. The AHC will be
submitted separately from the HABS documentation and will provide a succinct and
holistic history of the airport to provide context for the Hanger Complex’s
historic significance. The AHC will address the history of the airport from its
inception to the present with an emphasis on how and why the Hangar Complex was
developed and incorporated into the war effort as well as how it has affected
the transformation of the Memphis International Airport. The AHC will address
growth and development patterns, which may be presented in mapped format with
contextual explanations. The AHC will include current floorplan drawings of the
Hanger Complex structures and may include original drawings if readily
available. The AHC will utilize primary sources when available, but may rely on
secondary sources as necessary.

The AHC will be approximately 20-30 pages in length, including figures and maps.
It is understood that the AHC is not a survey of the airport and will not
include survey information or details for individual buildings outside of the
Hanger Complex. This documentation will be provided to the Commission after
demolition activities. The information will also be made available to the public
through its incorporation in the history section of the Authority’s website.

STIPULATION III. POST-REVIEW DISCOVERIES

If, during the implementation of the project, a previously unidentified property
is discovered or a previously identified historic property is affected in an
unanticipated manner, all work within a minimum of 50 feet around the area of
the discovery shall cease until a treatment plan can be developed and
implemented. The SHPO and FAA shall be notified at the earliest opportunity and
the Authority shall require its contractor to take all reasonable measures to
avoid harm to the property until FAA concludes consultation with the SHPO and,
to the extent appropriate, other consulting parties.

 

3

--------------------------------------------------------------------------------

No human remains, associated or unassociated funerary objects, sacred objects,
or objects of cultural patrimony are expected to be encountered in the
archaeological investigations. However, should human remains be encountered
during the survey, all ground disturbing activities in the vicinity of the human
remains will be ceased immediately. The treatment of any human remains and
associated funerary objects inadvertently discovered within the project area
will comply with all applicable Tennessee State laws concerning archaeological
sites and treatment of human remains.

STIPULATION IV: DISPUTE RESOLUTION

Should any party to this Memorandum object in writing within 30 days to any
action taken pursuant hereto, the FAA shall consult with the party to resolve
the concerns. If the FAA determines that the objection cannot be resolved, the
FAA shall request further comments or recommendations of the ACHP concerning the
dispute pursuant to 36 C.F.R. Part 800. Any comments on the subject of the
dispute provided by the ACHP in response to such a request will be considered by
the FAA in accordance with 36 C.F.R. Part 800. The FAA’s right and
responsibility to carry out all actions under this Memorandum that are not the
subject of the dispute will remain unchanged.

STIPULATION V: DURATION

If the terms of this Memorandum are not implemented within two years of
ratification, the FAA shall provide the ACHP with the opportunity to comment on
the effects and propose mitigation alternatives.

STIPULATION VI: TERMINATION

This Memorandum may be terminated by any party upon 30 days written notice to
the other parties sent by certified mail, postage prepaid or by facsimile
transmission and addressed to the respective parties.

If one party should provide such written notice of termination, all parties will
consult during the 30 days prior to termination in order to attempt to reach
agreement on amendments or other actions which would avoid termination. In the
event of termination, the FAA agrees to comply with the 36 CFR 800.4 through
800.6 with regard to the matters covered by this Memorandum.

This agreement shall be null and void if its terms are not carried out within 2
years from the date of execution, unless the parties agree in writing to an
extension for carrying out its terms.

 

4

--------------------------------------------------------------------------------

Execution of this Memorandum and implementation of its terms is evidence, and
shall be considered as such, that FAA has afforded the ACHP and the Tennessee
SHPO the opportunity to comment on the proposed project and that the FAA has
taken into account the effects of said construction on historic properties.

 

SIGNATORIES:     FEDERAL AVIATION ADMINISTRATION     By:   /s/ Phillip J. Braden
    Date: August 27, 2018 Phillip J. Braden, Manager       Memphis Airports
District Office      

TENNESSEE HISTORICAL COMMISSION

    By:   /s/ E. Patrick McIntyre, Jr.     Date: September 10, 2018 E. Patrick
McIntyre, Jr.       Executive Director and       State Historic Preservation
Officer      

INVITED SIGNATORIES:

   

MEMPHIS-SHELBY COUNTY AIRPORT AUTHORITY

    By:   /s/ Scott Brockman     Date: September 24, 2018 Scott Brockman      
President/CEO       Memphis-Shelby County Airport Authority       FEDERAL
EXPRESS     By:   /s/ Karen Blanks Ellis     Date: September 24, 2018 Karen
Blanks Ellis       Managing Director       Federal Express      

 

5

--------------------------------------------------------------------------------

EXHIBIT “D”

Tennessee Historical Commission—Letter of Demolition Approval dated

October 16, 2018

 

LOGO [g713875dsp017a.jpg]

TENNESSEE HISTORICAL COMMISSION

STATE HISTORIC PRESERVATION OFFICE

2941 LEBANON PIKE

NASHVILLE, TENNESSEE 37243-0442

OFFICE: (615) 532-1550

www.tnhistoricalcommission.org

October 16, 2018

Ms. Kristi Ashley

Memphis Airports District Office

Memphis Airports District Office

2862 Business Park Drive, Building G

Memphis, TN 38118-1555

RE: FAA I Federal Aviation Administration, FedEx Transformation Project at
Memphis International Airport, Memphis, Shelby County, TN

Dear Ms. Ashley:

We have reviewed the documents you submitted regarding your proposed undertaking
. The HABS Level II documentation you submitted fulfills Stipulation II of the
Memorandum of Agreement between our office, the Federal Aviation Administration,
the Memphis-Shelby County Airport Authority, and Federal Express regarding the
Federal Express Transformation Project at Memphis International Airport,
ratified on September 24,2018. Demolition can proceed on these buildings.
Questions and comments may be directed to Casey Lee (615 253-3163). We
appreciate your cooperation.

 

Sincerely, /s/ E. Patrick McIntyre, Jr. E. Patrick McIntyre, Jr. Executive
Director and State Historic Preservation Officer EPM/cjI