HomeMy WebLinkAboutRES 03-068 RESOLUTION NO. 03-068
BE IT RESOLVED BY THE CITY COUNCIL
OF THE CITY OF BEAUMONT:
THAT the City Manager is hereby authorized to execute the renewal of a lease agreement
with Vanderburg Investments, Inc. for a three-(3)year term commencing April 1, 2003 and
ending March 31, 2006 at a monthly rate of $4,200 for property located at 5250
Washington Blvd. The agreement is substantially in the form attached hereto as Exhibit
"A
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 1St day of April,
2003.
ayor- Mayor Evelyn M. Lord -
STATE OF TEXAS §
COUNTY OF JEFFERSON §
COMMERCIAL LEASE AGREEMENT
(Three Year Term with Option to Purchase)
THIS AGREEMENT entered effective the day of April, 2003, by and
between VANDERBURG INVESTMENTS, INC., herein called LESSOR, and CITY OF
BEAUMONT, herein called LESSEE.
WITNESSETH, that LESSOR does by these presents lease and demise unto
LESSEE the following described property (which is locally known as 5250 Washington
Blvd., Beaumont, Texas) to-wit:
An approximate 1.534 acre tract of land together with the improvements
thereon in Beaumont, Jefferson County, Texas as shown on the map attached
hereto as Exhibit "A,"
for a term of thirty-six (36) months, beginning on the 1St day of April, 2003, and ending
on the 31St day of March, 2006, to be used for its lawful purpose and paying therefor the
sum of $151,200.00, payable in thirty-six (36) monthly installments of $4,200.00 per
month, in advance, first installment being due on the 11 day of April, 2003, and one
installment being due on the 11 day of each and every calender month thereafter until
the full rental provided herein has been duly paid, subject to the terms and conditions
hereinafter set out. Any monthly rent paid after the 100' of the month shall be assessed
a $75.00 late fee. This lease is given in renewal and extension of that certain
Commercial Lease Agreement dated November 20, 1997 between Lessor and Lessee
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EXHIBIT "A"
for a term of sixty (60) months ending on December 31, 2002. Lessee has been
occupying the leased premises on a month-to-month basis beginning January 1, 2003.
1. LESSEE shall pay rental installments to LESSOR at P.O. Box 161447,
Austin, Texas 78716-1447 or at such other place as LESSOR may from time to time
instruct LESSEE in writing.
2. LESSEE shall take good care of the property and its fixtures, and suffer no
waste, except natural deterioration and damage by fire. LESSEE shall pay all utility
assessments and charges during the term of this lease. In this connection it is
understood that the building on the leased premises contains such equipment and
fixtures, except trade fixtures, as is necessary to afford adequate gas, water, electricity,
heating and air conditioning for the use and occupancy of the premises.
3. LESSEE agrees to accept possession of the premises in its present
condition.
4. LESSEE shall be responsible for the erection and maintenance of all signs
and trade fixtures on the leased premises.
5. LESSEE agrees to repair any and all damage or deterioration to the
interior of said improvements and to the roof, exterior walls and floor of said
improvements caused by the negligence or willful act of LESSEE, its agents, servants
or employees. LESSOR agrees to repair any and all damage or deterioration caused
by storm or fire, provided such fire was not proximately caused by the negligence, or
willful act of LESSEE, its agents, servants or employees.
6. LESSOR shall not be liable or obligated to repair any damages to said air
conditioning unit proximately caused by the negligence or willful act of LESSEE, their
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agents, servants or employees.
7. LESSEE shall promptly execute and fulfill all ordinances of applicable
municipal corporations relating to the use of the premises, for the correction, prevention
and abatement of nuisances in, upon or connected with said premises at LESSEE's
expense.
8. LESSEE agrees not to use or permit the premises or any part thereof to
be used for any unlawful purpose or in any way or for any purpose that might invalidate
or impair any insurance now or hereafter placed upon the premises is increased above
that which would be applicable to the use for which the premises are let by reason of
any extra rise in the use of the demised premises, to pay LESSOR the amount of the
increase.
9. LESSEE shall, in case of fire or other casualty damage, give immediate
notice to LESSOR. If the premises be so damaged as to be unfit for occupancy,
LESSOR or LESSEE may elect to terminate this lease, in which case LESSEE shall pay
rental to the date of such damage, and any prepaid rental, after such date, shall be
returned to LESSEE.
10. In case of default in any of the covenants herein, LESSOR may enforce
the performance of this lease in any manner provided by law, and this lease may be
forfeited at LESSOR's discretion if such default shall continue for a period of ten (10)
days after LESSOR notifies said LESSEE of such default and its intention to declare the
lease forfeited, such notice to be sent by regular mail to LESSEE's last known address,
or delivered to LESSEE in any other manner, including leaving such notice at the
demised premises, and thereupon (unless LESSEE shall have completely removed or
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cured said default) this lease shall cease and come to an end as if that were the day
originally fixed herein for the expiration of the term hereof, and LESSOR's agent or
attorney shall have the right, without further notice or demand, to re-enter and remove
all persons and LESSEE's property therefrom without being deemed guilty of any
manner of trespass, and without prejudice to any remedies for arrears of rent or breach
of covenant, or LESSOR's agent or attorney may resume possession of the premises
and re-let the same for the remainder of the term at the best rent said agent or attorney
may obtain, for the account of LESSEE, who shall make good any deficiency; and the
LESSOR shall have a lien as security for the rent aforesaid upon all the goods, wares,
chattels, implements, fixtures, furniture, tools and other personal property which are or
may be upon the demised premises at the time of default under any of the covenants
hereunder, and LESSOR, its agent or attorney, may take possession of such personal
property, sell the same and apply the proceeds to any delinquent or future obligation
hereunder to the extent necessary to meet such obligation, and the balance remaining,
if any, shall be paid to LESSEE.
11. LESSOR shall not be liable to LESSEE or to LESSEE's employees,
patrons, or visitors, for any damage to person or property, caused by the act or
negligence of any other tenant of said demised premises, or due to the building on said
premises or any appurtenances thereof being improperly constructed, or being or
becoming out of repair, nor for any damage from the defects or want of repair- of any-
part of the building of which the leased premises form a part, but the LESSEE accepts
such premises as suitable for the purposes for which same are leased and accepts the
building and each and every appurtenance thereof, and waives defects therein and
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agrees to hold the LESSOR harmless from all claims for any such damage.
12. LESSEE agrees to indemnify and hold LESSOR harmless against any and
all claims, demands, damages, costs and expenses, including reasonable attorney fees
for the defense thereof, arising from the conduct or management of LESSEE's business
in the leased premises or from any breach on the part of Lessee of any conditions of
this Lease, or from any act or negligence of LESSEE, its agents, contractors,
employees, subtenants, concessionaires, or licenses or in about the leased premises.
13. In the event that the LESSEE shall become bankrupt or shall make a
voluntary assignment for the benefit of creditors, or in the event that a receiver of the
LESSEE shall be appointed, then, at the option of the LESSOR and upon five (5) days
notice to the LESSEE of the exercise of such option, this lease shall cease and come to
an end.
14. If, during the term of this lease, there is a taking of the leased premises or
so large a part thereof as to render the remainder unsuitable for the continuation of
LESSEE's business by any governmental authority under the power of eminent domain,
then the LESSOR may elect to terminate this lease or to continue the same in effect but
if LESSOR elects to continue the lease, the rental hereunder shall be reduced
proportionately to the same extent that the leased premises are taken. The provisions
hereof shall be applicable to any conveyance in lieu of condemnation proceedings.
All sums awarded or agreed upon between LESSOR and the condemning
authority for the taking of the fee or the leasehold interest, whether as damages or as
compensation, shall be the property of the LESSOR. Any amount specifically awarded
to the LESSEE by the condemning authority for the taking of tenant's trade fixtures or
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other equipment shall be the property of the LESSEE.
15. LESSOR shall pay and be responsible for any ad valorem tax on said
leased premises. LESSEE will be responsible for any taxes or assessments levied
against the personal property and trade fixtures of LESSEE.
16. LESSOR shall pay the insurance premiums for fire and other hazard
insurance in connection with building and the physical improvements now existing and
located upon and attached to said premises.
17. LESSEE, with approval of LESSOR, and at its own expense, may make
alterations, additions and improvements in and to said premises. All such alterations,
additions and improvements shall belong to LESSOR and become a part of the
premises so demised.
18. LESSEE agrees to permit and allow LESSOR, its agents and officers in
and upon said demised premises from time to time to inspect the same and make such
repairs as LESSOR may think necessary for the proper protection and preservation of
the building, following reasonable notice.
19. At the termination of this lease, by lapse of time or otherwise, LESSEE
agrees to surrender and yield to LESSOR, immediate peaceful possession thereof,
together with all additions and improvements thereto, which are not allowed by
LESSOR to be removed; to surrender and turn over to LESSOR all keys to said
premises, and deliver possession of the premises in as good condition as received,
ordinary wear and tear and damages by fire and other casualty not caused by the
negligence or willful act of LESSEE, its agents, servants, or employees, excepted.
20. LESSOR shall have the right to assign in whole or in part, each and every,
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all and singular its rights under this lease agreement and to convey all or any part of the
property and improvements the subject hereof, subject however to the terms and
conditions hereof.
21. It is understood and agreed by LESSEE that this lease agreement and its
rights hereunder are subject to, subordinate and inferior to the rights of all mortgagees
and lienholders holding liens on the demised property at the commencement of the term
of this lease and LESSOR shall not be liable for any loss, damage or expense
whatsoever resulting to LESSEE from a foreclosure by any such mortgagee or
lienholder.
22. It is expressly understood, covenanted and agreed, anything to the
contrary herein appearing notwithstanding, that upon the expiration of this lease and
any renewal or extension thereof and above described property shall remain the
property of LESSOR, together with all improvements, alterations and additions thereto,
except such as may be expressly allowed to be removed by LESSOR. LESSEE agrees
to repair any and all damage to said premises caused by removal of any improvement,
alteration or additions so allowed to be removed by LESSOR.
23. Any holding over by LESSEE after the expiration of the term of this lease
shall operate as a tenancy from month-to-month at a rental of$4,200.00 per month.
24. In the event LESSOR or LESSEE breaches any of the terms of this
agreement whereby the party not in default employs attorneys to protect or enforce its
rights hereunder and prevails, then the defaulting party agrees to pay the other party
reasonable attorney fees so incurred by such other party.
25. Words of any gender used in this lease shall be held and construed to
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include any other gender, and words in the singular number shall be held to include the
plural, unless the context otherwise requires.
26. It is not a waiver of default if the non-defaulting party fails to declare
immediately a default or delays in taking any action. Pursuit of any remedies set forth in
this lease does not preclude pursuit of other remedies in this lease or provided by law.
27. Lessor and Lessee shall submit in good faith to mediation before filing a
suit for damages.
28. All of the covenants, agreements, terms and conditions to be observed
and performed by the parties hereto shall be applicable to and binding upon their
respective heirs personal representatives, successors, and to the extent assignment is
permitted hereunder, their respective assigns.
29. This agreement shall be construed under and in accordance with the laws
of the state of Texas.
30. Venue is in the county in which the premises are located, i.e., Jefferson
County.
31. Nothing herein contained shall be deemed or construed by the parties
hereto, nor by a third party, to be a creation of the relationship of principal and agent, or
of partnership, or of joint venture between the parties. Neither computation of rent, nor
any other provision contained herein, nor any other provision contained herein, nor any
acts of the parties hereto, shall be deemed to create any relationship between the
parties thereto, other than the relationship of landlord and tenant.
32. Time is of the essence in the performance of all of the obligations
hereunder.
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33. This lease, together with the attached exhibits, is the entire agreement of
the parties, and there are no oral representations, warranties, agreements, or promises
pertaining to this lease or to the expressly mentioned exhibits not incorporated in writing
in this lease.
34. This lease may be amended only by an instrument in writing signed by
Lessor and Lessee.
35. LIMITATIONS OF WARRANTIES. THERE ARE NO IMPLIED
WARRANTIED OF MERCHANTABILITY, OF FITNESS FOR A PARTICULAR
PURPOSE, OR OF ANY KIND ARISING OUT OF THIS LEASE, AND THERE ARE NO
WARRANTIES THAT EXTEND BEYOND THOSE EXPRESSLY STATED IN THIS
LEASE. THE PREMISES ARE LEASED "AS IS", "WITH ALL FAULTS."
36. Any notices required by this lease shall be deemed to be delivered
(whether or not actually received) when deposited with the United States Postal
Service, postage prepaid, certified mail, return receipt requested, and addressed to
Lessor or Lessee at their address.
37. Lessor may retain, destroy, or dispose of any property left on the
Premises at the end of the term.
38. The LESSEE presently intends to continue this Lease for its entire term;
however, in the event the City Council of the City of Beaumont fails to appropriate
money for any Fiscal Year sufficient for the continued performance of this Lease, which
may be evidenced by a budget ordinance or resolution which does not appropriate any
moneys to pay the rental installments due under this Lease, the LESSEE shall
endeavor to give notice of such termination not less than sixty (60) days prior to the end
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of its then current Fiscal Year, and shall notify LESSOR of any anticipated termination.
Upon termination for non-appropriation, LESSOR shall have all rights as provided in this
agreement.
OPTION TO PURCHASE
LESSEE is hereby granted an option to purchase the property described above
during and prior to the expiration of the lease term as long as LESSEE is not in default
of any of LESSEE's obligations pursuant to this agreement. Lessee may exercise`this
option by submitting to Lessor prior to the expiration of the lease term an Earnest
Money Contract utilizing Texas Real Estate Commission forms. The contract will
provide that the purchase price will be $450,000.00. One Thousand Five Hundred
Dollars ($1,500.00) of each month's rent will be applied to the purchase price. The
balance will be paid at closing. At closing, LESSOR and LESSEE will execute such
deeds, note, and deeds of trust deemed proper or appropriate. LESSOR and LESSEE
will pay normal closing costs and their own attorney fees. LESSOR (SELLER) will
provide at SELLER's expense an Owner's Title policy through a title company of his
choice. The property will be conveyed "as is" and 'without warranty" except warranty of
title. The earnest money contract will not provide for an inspection period. Closing will
be within thirty (30) days from date of earnest money contract.
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EXECUTED on the date first above written at Beaumont, Jefferson County,
Texas.
VANDERBURG INVESTMENTS, INC., CITY OF BEAUMONT
By: By:
J.Q. Vanderburg, Its President
Position:
Its Authorized Representative
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