HomeMy WebLinkAboutRES 03-012 RESOLUTION NO. 03-012
BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF BEAUMONT:
THAT the City Manager be and he is hereby authorized to execute a lease agreement with
the Boston Dry Goods Company and lone S. Ney, as Trustee of the Ney Family Trust, for
property described as Lots 404 through 408 inclusive, Lots 410 and 411, and Lots 413
through 415 inclusive, Block 57 of the Beaumont Townsite Subdivision, also known as 790
through 796 Park Street as shown in Exhibit "A" attached hereto and made a part hereof
for all purposes. The lease is substantially in the form attached hereto as Exhibit "B."
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 14th day of
January, 2003.
- May Evelyn M. Lord -
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STATE OF TEXAS §
COUNTY OF JEFFERSON §
LEASE WITH AN OPTION TO PURCHASE
WHEREAS, the City of Beaumont, a municipal corporation of the State of Texas
(herein "Lessee"), currently leases property described as Lots 404 through 408 inclusive,
Lots 410 and 411, and Lots 413 through 415 inclusive of Block 57 of the Beaumont
Townsite Subdivision, 790-796 Park Street (herein "Premises"), from Ney S-Trust
("Lessor"); and
WHEREAS, City desires to execute a successor lease to commence January 1,
2005;
IN WITNESS THEREOF, the parties agree as follows:
1. Boston Store Dry Goods Company and lone S. Ney, as Trustee of the Ney
Family Trust (successor to the original Lessor and referred to herein as "Lessor") certify
that they are the fee owner of the Premises and hereby leases the Premises to Lessee and
Lessee hereby agrees to accept said lease.
2. The term of this lease is from January 1, 2005, until December 31, 2009.
3. As consideration for this lease, Lessee shall pay rent at the rate of$14,400
per year, said amount payable in monthly installments of$1,200 per month. Monthly rent
shall be payable in advance on or before the first day of each month beginning on January
1, 2005.
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EXHIBIT "B"
4. Lessee shall have an option to purchase the property (excluding minerals)
prior to the expiration of this lease for the amount of$170,000 less all amounts paid in rent
under this lease. In order to exercise this option, Lessee must provide Lessor notice of its
intention to exercise the option at least ninety (90) days prior to the end of the lease and
Lessee must not be in default in any of its obligations thereunder. Should Lessee exercise
the purchase option, Lessee will pay all closing costs associated with the purchase and
Lessor agrees to execute a special warranty deed to Lessee at the time of closing. Such
deed shall convey the property "AS IS, WHERE IS" without any warranties as to the
condition of the property,subject to all restrictions,easements,covenants,conditions,and
rights-of-way then of record. Lessor will agree to waive surface rights relating to the
excluded minerals. If the option to purchase is not exercised or if this lease terminates by
reason of default or any other reason, all rent paid by Lessee to Lessor shall be non-
refundable.
5. Lessee may sublease the Premises to Jefferson County without approval of
Lessor. Such sublease shall not affect, however, the mutual obligations of Lessor and
Lessee as set out in this lease.
6. So long as Lessee is current in all of its obligations to Lessor hereunder,
Lessee may terminate this lease if Jefferson County no longer has need of Premises as
a parking area and Lessee gives Lessor at least one hundred and twenty (120) days
written notice of its intention to terminate the lease.
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7. Lessee shall be responsible for all maintenance of the leased Premises and
Lessee and/or its sublessee are hereby authorized to make any improvements to the
Premises without the approval of Lessor. All improvements to the Premises shall remain
the Property of Lessee. At the conclusion of this lease, Lessee shall have the option of
removing such improvements.
8. Lessor shall pay all taxes assessed on the leased Premises.
9. Boston Store Dry Goods Company(herein"Company"), currently has a right
of access to a fur vault on the third (3r')floor of the Lessee's Municipal Court Building that
will expire December 31, 2004. Company desires to extend that right of access until
December 31, 2009.
10. Lessee hereby agrees to extend such right of access until December 31,
2009, under the following conditions:
a. Lessee shall pay for all electrical usage attributable to Company's use of the
vault for storage of furs. Lessee will not intentionally remove electrical service to
the vault.
b. Company's access to the vault shall be limited to the hours of 8:00 a.m. to
5:00 p.m. on the weekdays of Monday through Friday inclusive, except for those
days which have been declared holidays by Lessee.
C. Company hereby indemnifies Lessee,its officers,employees oragents
against any and all claims, causes of action or suits brought by Company or
third persons arising from Company's use or activity within the Municipal
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Court Building associated with the use of the vault, expressly including all
claims, causes of action orsuits arising from the negligent orintentional acts
of Lessee, its officers, employees or agents for which Lessee does not have
immunity.
d. Company shall be solely responsible for the maintenance and security of the
vault and its contents, including all charges for security systems and penalties, if
any, for false alarms which might arise from the existence of the vault and its
security system.
e. Should Lessee or Lessor desire to cancel Company's right of access to the
vault, the party will provide a minimum of 365 days written notice to the other party
of such cancellation. Should the right of access be cancelled, Lessee shall
increase rental payments as set out in paragraph 3 hereof by the amount of$600
per month effective the calender month after the effective date of the cancellation
of the right of access.
EXECUTED this day of , 2002.
CITY OF BEAUMONT: ZONE S. NEY TRUST:
By: By:
BOSTON STORE DRY GOODS COMPANY:
By:
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