HomeMy WebLinkAboutRES 10-070 RESOLUTION NO. 10-070
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 one (1) year Lease
Agreement, substantially in the form attached hereto as Exhibit "A," in the amount of
$1,175.20 per month with David Derharoutian (Landlord) for the use of property located
at 8155 Phelan Boulevard, Beaumont, Texas, for EMS Med No. 4. The new lease would
begin April 1, 2010, and end on March 31, 2011.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 23rd day of
March, 2010.
Jr
l� - Mayor Becky Ames -
TEXAS ASSOCIATION OF REALTORSO
COMMERCIAL LEASE
USE OF THIS FORM BY PERSONS WHO ARE NOT MEMBERS OF THE TEXAS ASSOCIATION OF REALTORS®IS NOT AUTHORIZED,
Qfiexas Association of REALTORSO,tnc.2006
Table of C ntents
No. Paragraph Description p9.: No. Paragraph Description PQ.
1. Parties 2 22. Holdover 10
2. Leased Premises 2 23. Landlord's Lien &Security Interest 10
3. Term 2 24. Assignment and Subletting 10
A. Term 25. Relocation 11
B. Delay of Occupancy 26. Subordination 11
4. Rent and Expenses 3 27. Estoppel Certificates 11
A. Base Monthly Rent 28. Casualty Loss 11
B. First Full Month's Rent 29. Condemnation 12
C. Prorated Rent 30. Attorney's Fees 12
D. Additional Rent 31. Representations 12
E. Place of Payment 32. Brokers 12
F. Method of Payment 33. Addenda 13
G. Late Charges 34. Notices 13
H. Returned Checks 35. Special Provisions 13
5. Security Deposit 4 36. Agreement of the Parties 1.4
6. Taxes 4
7. Utilities 4
8. Insurance 5 ADDENDA& EXHIBITS (check all that apply}
9. Use and Hours 5
10, Legal Compliance 6 d Exhibit
11. Signs 6 ❑ Exhibit
12. Access By Landlord 7 ❑ Commercial Lease Addendum for Broker's Fie
13. Move-In Condition 7 ❑ Commercial Lease Expense Reimbursement
14. Move-Out Condition 7 Addendum
15. Maintenance and Repairs 7 d Commercial Lease Addendum for Extension
A. Cleaning Option
B. Conditions Caused by a Party ❑ Commercial Lease Addendum for Percentage
C. Repair& Maintenance Responsibility Rent
D. Repair Persons d Commercial Lease Parking Addendum
E. HVAC Service Contract ❑ Commercial Landlord's Rules and Regulations
F. Common Areas ❑ Commercial Lease Guaranty
G. Notice of Repairs ❑ Commercial Lease Right of First Refusal
H. Failure to Repair Addendum
16. Alterations 9 C7 Commercial Lease Addendum for Optional
17, Liens 9 Space
18. Liability 9 ❑ Commercial Leasehold Construction Addendum
19. Indemnity 9 d
20. Default 9 ❑
21. Abandonment, Interruption of Utilities,
Removal of Property & Lockout 10
(TAR-2101)5-26-06 Initialed for Identification by Tenant: and Landlord: Page 1 of 14
American Real Estate 3550 Dowlen,Suite A, Beaumont TX 77706
Phone:409.866,9129 Fax: 409.866.4473 Kelli Maness 8155 PHEI,AN
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EXHIBIT "A"
TEXAS ,ASSOCIATION OF REALTORS®
COMMERCIAL LEASE
USE OF THIS FORM BY PERSONS WHO ARE NOT MEMBERS OF THE TEXAS ASSOCIATION OF REALTORS®I$NOT AUTHORIZED.
*Texas Association of REALTORS®,Im 2006
1. PARTIES: The parties to this lease are:
Tenant: CITY OF BEAUMONT
P.O. BOX 3827 BEAUMONT, TX. 77704 and
Landlord: P„ D DEBRARMIAB
2. LEASED PREMISES:
A. Landlord leases to Tenant the following described real property, known as the "leased premises," along
with all its improvements (Check only one box):
I� (1) Multiple-Tenant Property Suite or Unit Number containing approximately
square feet of rentable area in (project name)
at
(address) in (city), (county),
Texas, which is legally described on attached Exhibit or as follows:
al (2) Single-Tenant Pro rt : The real property at: 8255 PEiELM
(address) in
BEALUMT (city), JEFFERSON (county), Texas,which
is legally described on attached Exhibit c WILLIAMS or as follows:
ABSTRACT 59 TR 72-A SP-6 BLK. IS
B. If Paragraph 2A(1) applies:
(1) "Property" means the building or complex in which the leased premises are located, inclusive of
any common areas, drives, parking areas, and walks; and
(2) the parties agree that the rentable area of the leased premises may not equal the actual or useable
area within the leased premises and may include an allocation of common areas in the Property.
3. TERM:
A. Term. The term of this lease is 12 months and 0 days, commencing on:
April 1 , 2010 (Commencement Date) and ending on
March 31 , 2011 (Expiration Date).
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B. Delay of Occupancy: If Tenant is unable to occupy the leased premises on the Commencement Date
because of construction on the leased premises to be completed by Landlord that is not substantially
complete or a prior tenant's holding over of the leased premises, Landlord will not be liable to Tenant
for such delay and this lease will remain enforceable. In the event of such a delay, the Commencement
Date will automatically be extended to the date Tenant is able to occupy the Property and the
Expiration Date will also be extended by a like number of days, so that the length of this lease remains
unchanged. If Tenant is unable to occupy the leased premises after the 90th day after the
Commencement Date because of construction on the leased premises to be completed by Landlord
that is not substantially complete or a prior tenant's holding over of the leased premises, Tenant may
terminate this lease by giving written notice to Landlord before the leased premises become available
to be occupied by Tenant and Landlord will refund to Tenant any amounts paid to Landlord by Tenant.
This Paragraph 3B does not apply to any delay in occupancy caused by cleaning or repairs.
C. Unless the parties agree otherwise, Tenant is responsible for obtaining a certificate of occupancy for
the leased premises if required by a governmental body.
4. RENT AND EXPENSES:
A. Base Monthly Rent: On or before the first day of each month during this lease, Tenant will pay
Landlord base monthly rent as described on attached Exhibit N/A or as follows,
from April 1, 2010 to March 31, 2011 $ 1,125.20
from to $
from to $
from to $
from to $
B. First Full Month's Rent The first full base monthly rent is due on or before April 1. 2010
C. Prorated Rent: If the Commencement Date is on a day other than the first day of a month, Tenant will
pay Landlord as prorated rent, an amount equal to the base monthly rent multiplied by the following
fraction: the number of days from the Commencement Date to the first day of the following month
divided,by the number of days in the month in which this lease commences. The prorated rent is due
on or before the Commencement Date.
D. Additional Rent: In addition to the base monthly rent and prorated rent, Tenant will pay Landlord all
other amounts, as provided by the attached (Check all that apply.) :
[. (1) Commercial Expense Reimbursement Addendum
[� (2) Commercial Percentage Rent Addendum
[� (3) Commercial Parking Addendum
[� (4)
All amounts payable under the applicable addenda are deemed to be "rent" for the purposes of this
lease.
E. Place of Payment: Tenant will remit all amounts due Landlord under this lease to the following person
at the place stated or to such other person or place as Landlord may later designate in writing:
Name, nAVTD DERHA'ROUTIAN c/o STACY TYWATER
Address: BRA-umoau AREA FEDERAL CREDIT UNION
F. Method of Pam: Tenant must pay all rent timely without demand, deduction, or offset, except as
permitted by law or this lease. If Tenant fails to timely pay any amounts due under this lease or if any
check of Tenant is returned to Landlord by the institution on which it was drawn, Landlord after
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providing written notice to Tenant may require Tenant to pay subsequent amounts that become due
under this lease in certified funds. This paragraph does not limit Landlord from seeking other remedies
under this lease for Tenant's failure to make timely payments with good funds.
G. Late Charqes: If Landlord does not,@ctually receive a rent payment at the designated place of payment
within 5 days after the date it is due, Tenant will pay Landlord a late charge equal to 5% of the amount
due. In this paragraph, the mailbox is not the agent for receipt for Landlord. The late charge is a cost
associated with the collection of rent and Landlord's acceptance of a late charge does not waive
Landlord's right to exercise remedies under Paragraph 20.
H. Returned Checks: Tenant will pay$2500 (not to exceed$25)for each check
Tenant tenders to Landlord which is returned by the institution on which it is drawn for any reason, plus
any late charges until Landlord receives payment.
5. SECURITY DEPOSIT:
A. Upon execution of this lease, Tenant will pay$_ N/A to Landlord as a security
deposit.
B. Landlord may apply the security deposit to any amounts owed by Tenant under this lease. If Landlord
applies any part of the security deposit during any time this lease is in effect to amounts owed by
Tenant, Tenant must, within 10 days after receipt of notice from Landlord, restore the security deposit to
the amount stated.
C. ,Within 60 days after Tenant surrenders the leased premises and provides Landlord written notice of
Tenant's forwarding address, Landlord will refund the security deposit less any amounts applied toward
amounts owed by Tenant or other charges authorized by this lease.
6. TAXES:, Unless otherwise agreed by the parties, Landlord will pay all real property ad valorem taxes
assessed against the leased premises.
7. UTILITIES:
A. The party designated below will pay for the following utility charges to the leased premises and any
connection charges for the utilities. (Check all that apply.)
J,�/ Landlord Tenan
(1) Water Q a g
(2) Sewer Ell C� L
(3) Electric Q
(4) Gas
(5) Telephone
(6) Trash x
(7) Cable
(8 $
9) All other utilities ❑ Q
B. The party responsible for the charges under Paragraph 7A will pay the charges directly to the utility
service provider. The responsible party may select the utility service provider except that if Tenant
selects the provider, any access or alterations to the Property or leased premises necessary for the
utilities may be made only with Landlord's prior consent, which Landlord will not unreasonably withhold.
If Landlord incurs any liability for utility or connection charges for which Tenant is responsible to pay and
Landlord pays such amount, Tenant will immediately upon written notice from Landlord reimburse
Landlord such amount.
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C. Notice: Tenant should determine if all necessary utilities are available to the leased premises and
are adequate for Tenant's intended use.
D. After-Hours HVAC Charges: "HVAC services" means heating, ventilating, and air conditioning of the
leased premises. (Check one box only.)
(� (1) Landlord is obligated to provide the HVAC services to the leased premises only during the
Property's operating hours specified under Paragraph 9C.
❑ (2) Landlord will provide the HVAC services to the leased premises during the operating hours specified
under Paragraph 9C for no additional charge and will, at Tenant's request, provide HVAC
services to the leased premises during other hours for an additional charge of$
per hour. Tenant will pay Landlord the charges under this paragraph immediately upon receipt of
Landlord's invoice. Hourly charges are charged on a half-hour basis. Any partial hour will be
rounded up to the next half hour. Tenant will comply with Landlord's procedures to make a request
to provide the additional HVAC services under this paragraph.
(3) Tenant will pay for the HVAC services under this lease. �e�a%,y `a�y
8. INSURANCE: CITY IS SELF INSURED.
A. uring all times this lease is in effect, Tenant must, at Tenant's expense, maintain in full force and ct
fro n insurer authorized to operate in Texas:
(1) pub 'ability insurance in an amount not less than $1,000,000.00 on an occurren sis naming
Landlor n additional insured; and
(2) personal pro damage insurance for Tenant's business operations an ntents on the leased
premises in an amo sufficient to replace such contents after a casu oss.
B. Before the Commencement D ' Tenant must provide L.andlo h a copy of insurance certificates
evidencing the required coverage. I insurance covera renewed or changes in any manner or
degree at any time this lease is in effec , enant m not later than 10 days after the renewal or
change, provide Landlord a copy of an insuranc rficate evidencing the renewal or change.
C. If Tenant fails to maintain the required in ance in full and effect at all times this lease is in effect,
Landlord may:
(1) purchase insurance that ' provide Landlord the same cov a as the required insurance and
Tenant must immedi reimburse Landlord for such expense;or
(2) exercise Landlor ' remedies under Paragraph 20.
D. Unless the roes agree otherwise, Landlord will maintain in full force and effect ins nce for (1) fire
and a ded coverage in an amount to cover the reasonable replacement cost of the im ements of
t roperty; and (2) any public liability insurance in an amount that Landlord determines re able
and appropriate.
E. If there is an increase in Landlord's insurance premiums for the leased premises or Property or its
contents that is caused by Tenant, Tenant's use of the leased premises, or any improvements made by
or for Tenant, Tenant will, for each year this lease is in effect, pay Landlord the increase immediately
after Landlord notifies Tenant of the increase. Any charge to Tenant under this Paragraph 8E will be
equal to the actual amount of the increase in Landlord's insurance premium.
9. USE AND HOURS:
A. Tenant may use the leased premises for the following purpose and no other:iR0ENCY MEDICAL_
SERVICE MR CITY OF BEAUMONT, INCLUDINrz STORAGE OF EXlEB2WQX UNIT AND LJMG
QUARTERS FOR EMPLOYEES
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B, Unless otherwise specified in this lease, Tenant will operate and conduct its business in the leased
premises during business hours that are typical of the industry in which Tenant represents it operates.
C. The Property maintains operating hours of(specify hours, days of week, and if inclusive or exclusive of
weekends and holidays): 24 HOUFts A DAY — SEVEN DAYS A WOK
10. LEGAL COMPLIANCE:
A. Tenant may not use or permit any part of the leased premises or the Property to be used for:
(1) any activity which is a nuisance or is offensive, noisy, or dangerous;
(2) any activity that interferes with any other tenant's normal business operations or Landlord's
management of the Property;
(3) any activity that violates any applicable law, regulation, zoning ordinance, restrictive covenant,
governmental order, owners' association rules, tenants' associatiori rules, Landlord's rules or
regulations, or this lease;
(4) any hazardous activity that would require any insurance premium on the Property or leased premises
to increase or that would void any such insurance;
(5) any activity that violates any applicable federal, state, or local law, including but not limited to those
laws related to air quality, water quality, hazardous materials, wastewater, waste disposal, air
emissions, or other environmental matters;
(6) the permanent or temporary storage of any hazardous material;or
(7)
B. "Hazardous material" means any pollutant, toxic substance, hazardous waste, hazardous material,
hazardous substance, solvent, or oil as defined by any federal, state, or local environmental law,
regulation, ordinance, or rule existing as of the date of this lease or later enacted.
C. Landlord does not represent or warrant that the leased premises or Property conform to applicable
restrictions, zoning ordinances, setback lines, parking requirements, impervious ground cover ratio
requirements, and other matters that may relate to Tenant's intended use. Tenant must satisfy itself that
the leased premises may be used as Tenant intends by independently investigating all matters related to
the use of the leased premises or Property. Tenan agrees that Lis not relying,gar — warran or
representation made by Landlord. Landlord's agent,oL_g.ny broker conceming tie use of.t.,-h-a eased
premises or Property.
11.SIGNS:
A. Tenant may not post or paint any signs at, on, or about the leased premises or Property without
Landlord's written consent. Landlord may remove any unauthorized sign, and Tenant will promptly
reimburse Landlord for its cost to remove any unauthorized sign.
B. Any authorized sign must comply with all laws, restrictions, zoning ordinances, and any governmental
order relating to signs on the leased premises or Property. Landlord may temporarily remove any
authorized sign to complete repairs or alterations to the leased premises or the Property.
C. By providing written notice to Tenant before this lease ends, Landlord may require Tenant, upon
move-out and at Tenant's expense, to remove, without damage to the Property or leased premises, any
or all signs that were placed on the Property or leased premises by or at the request of Tenant. Any
signs that Landlord does not require Tenant to remove and that are fixtures, become the property of the
Landlord and must be surrendered to Landlord at the time this lease ends,
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12.ACCESS BY LANDLORD:
A. During Tenant's normal business hours Landlord may enter the leased premises for any reasonable
purpose, including but not limited to purposes for repairs, maintenance, alterations, and showing the
leased premises to prospective tenants or purchasers. Landlord may access the leased premises after
Tenant's normal business hours if: (1) entry is made with Tenant's permission; or (2) entry is necessary
to complete emergency repairs. Landlord will not unreasonably interfere with Tenant's business
operations when accessing the leased premises.
B. During the last 30 days of this lease, Landlord may place a "For lease"or similarly worded sign in
the leased premises.
13. MOVE-IN CONDITION: Tenant has inspected the leased premises and accepts it in its present (as-is)
condition unless expressly noted otherwise in this lease. Landlord and any agent have made no express or
implied warranties as to the condition or permitted use of the leased premises or Property.
14. MOVE-OUT CONDITION AND FORFEITURE OF TENANTS PERSONAL PROPERTY:
A. At the time this lease ends, Tenant will surrender the leased premises in the same condition as when
received, except for normal wear and tear. Tenant will leave the leased premises in a clean condition
€ree of all trash, debris, personal property, hazardous materials, and environmental contaminants.
B. If Tenant leaves any personal property in the leased premises after Tenant surrenders possession of the
leased premises, Landlord may: (1) require Tenant, at Tenant's expense, to remove the personal
property by providing written notice to Tenant; or (2) retain such personal property as forfeited property
to Landlord.
C. "Surrender" means vacating the leased premises and returning all keys and access devices to Landlord.
"Normal wear and tear" means deterioration that occurs without negligence, carelessness, accident, or
abuse.
D. By providing written notice to Tenant before this lease ends, Landlord may require Tenant, upon
move-out and at Tenant's expense, to remove, without damage to the Property or leased premises, any
or all fixtures that were placed on the Property or leased premises by or at the request of Tenant. Any
fixtures that Landlord does not require Tenant to remove become the property of the Landlord and must
be surrendered to Landlord at the time this lease ends.
15. MAINTENANCE AND REPAIRS:
A. Cleaning: Tenant must keep the leased premises clean and sanitary and promptly dispose of all
garbage in appropriate receptacles. Q Landlord 9k Tenant will provide, at its expense, janitorial
services to the leased premises that are customary and ordinary for the property type. Tenant will
maintain any grease trap on the Property which Tenant uses, including but not limited to periodic
emptying and cleaning, as well as making any modification to the grease trap that may be necessary to
comply with any applicable law.
B. Repairs of Conditions Caused by a Party: Each party must promptly repair a condition in need of repair
that is caused, either intentionally or negligently, by that party or that party's guests, patrons, invitees,
contractors or permitted subtenants.
C. Repair and Maintenance Responsibility: Except as otherwise provided by this Paragraph 15, the party
designated below, at its expense, is responsible to maintain and repair the following specified items in
the leased premises (if any). The specified items must be maintained in clean and good operable
condition. If a governmental regulation or order requires a modification to any of the specified items, the
party designated to maintain the item must complete and pay the expense of the modification. The
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specified items include and relate only to real property in the leased premises. Tenant is responsible for
the repair and maintenance of its personal property. (Check a/l that apply.)
Nom/ Landlord Tenant
(1) Foundation, exterior walls, roof, and other structural components Q
(2) Glass and windows
(3) Fire protection equipment and fire sprinkler systems AZO�
(4) Exterior & overhead doors, including closure devices, molding Q [ (�
locks, and hardware
(5) Grounds maintenance, including landscaping and irrigation Q OI
N
systems
(6) Interior doors, including closure devices, frames, molding, locks,
and hardware
(7) Parking areas and walks Q [�
(8) Plumbing systems, drainage systems, electrical systems, and i
mechanical systems, except systems or items specifically
designated otherwise
(9) Ballast and lamp replacement g [
(1 D) Heating, Ventilation and Air Conditioning (HVAC) systems
(11) Signs and lighting:
(a) Pylon g g g
(b) Facia 4 [�
(c) Monument Cr
(d) Door/Suite
(12) Extermination and pest control, excluding wood-destroying insects Q
(13) Fences and Gates
(14) Storage yards and storage buildings
(15) Wood-destroying insect treatment and repairs g
(16) Cranes and related systems
(17) C�
(18) d
(19) All other items and systems. [�
D. Repair Persons: Repairs must be completed by trained, qualified, and insured repair persons.
E. HVAC Service Contract: If Tenant maintains the HVAC system under Paragraph 15C(10), TenantM is
Q is not required to maintain, at Its expense, a regularly scheduled maintenance and service contract
for the HVAC system. The maintenance and service contract must be purchased from a HVAC
maintenance company that regularly provides such contracts to similar properties. If Tenant fails to
maintain a required HVAC maintenance and service contract in effect. at all times during this lease,
Landlord may do so and charge Tenant the expense of such a maintenance and service contract or
exercise Landlord's remedies under Paragraph 20.
F. Common Areas: Landlord will maintain any common areas in the Property in a manner as Landlord
determines to be in the best Interest of the Property. Landlord will maintain any elevator and signs in
the common area. Landlord may change the size, dimension, and location of any common areas,
provided that such change does not materially impair Tenant's use and access to the leased premises.
Tenant has the non-exclusive license to use the common areas in compliance with Landlord's rules
and restrictions. Tenant may not solicit any business in the common areas or interfere with any other
person's right to use the common areas. This paragraph does not apply if Paragraph 2A(2) applies.
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G. Notice of Repairs: Tenant must promptly notify Landlord of any item that is in need of repair and that is
Landlord's responsibility to repair.All requests for repairs to Landlord must be in writing.
H. Failure to Repair: Landlord must make a repair for which Landlord is responsible within a reasonable
period of time after Tenant provides Landlord written notice of the needed repair. If Tenant fails to
repair or maintain an item for which Tenant is responsible within 10 days after Landlord provides
Tenant written notice of the needed repair or maintenance, Landlord may: (1) repair or maintain the
item, without liability for any damage or loss to Tenant, and Tenant must immediately reimburse
Landlord for the cost to repair or maintain; or(2) exercise Landlord's remedies under Paragraph 20.
16. ALTERATIONS:
A. Tenant may not alter, improve, or add to the Property or the leased premises vvithout Landlord's written
consent. Landlord will not unreasonably withhold consent for the Tenant to make reasonable
non-structural alterations, modifications, or improvements to the leased premises.
B. Tenant may not alter any locks or any security devices on the Property or the leased premises without
Landlord's consent. If Landlord authorizes the changing, addition, or rekeying of any locks or other
security devices, Tenant must immediately deliver the new keys and access devices to Landlord.
C. If a governmental order requires alteration or modification to the leased premises,the party obligated to
maintain and repair the item to be modified or altered as designated in Paragraph 15 will., at its
expense, modify or alter the item in compliance with the order and in compliance with Paragraphs 16A
and 17.
D. Any alterations, improvements, fixtures or additions to the Property or leased premises installed by
either party during the term of this lease will become Landlord's property and must be surrendered to
Landlord at the time this lease ends, except for those fixtures Landlord requires Tenant to remove
under Paragraph 11 or 14 or if the parties agree otherwise in writing.
17. LIENS: Tenant may not do anything that will cause the title of the Property or leased premises to be
encumbered in any way. If Tenant causes a lien to be filed against the Property or leased premises,
Tenant will within 20 days after receipt of Landlord's demand: (1) pay the lien and have the lien released of
record; or (2) take action to discharge the lien. Tenant will provide Landlord a copy of any release Tenant
obtains pursuant to this paragraph.
18. LIABILITY: To the extent permitted by law. Landlord is NOT responsible to Tenant or Tenant's employees
patrons, guests, or invitees for any damages. injuries. or losses to parson or promay caused by
A. an act, omission, or neglect of: Tenant: Tenant's agent; Tenant's guest:tenant's employees; Tenant's
patrons:Tenant's invitees: or any other tenant on the Prone[M
B. fire flood. wate leaks. ice. snow hak winds, explosion, smo a riot. strike. inter ion.gf utilities,
theft. burglary. robbery. assault. vandalism. Qther persons, environmental contajninants, or other
occurrences or casualty losses.
will be responsible for
19. INDEMNITY: EELch_arty from ony rp opert y damage,
personal iniury. snits, actions. liabilities, damages, cost of repairs or service tQ the leased premises of
Property, or any other loss caused._negligently or otherwise.by that-R@rty or that a 's employees,
patrons, guests, or invitees. A
caused
20. DEFAULT: a�5
�o
A. If Landlord fails to comply with this lease within 30 days after Tenant•. notifies Landlord of Landlord's
failure to comply, Landlord will be in default and Tenant may seek any remedy provided by law. If,
however, Landlord's non-compliance reasonably requires more than 30 days to cure, Landlord will not
be in default if the cure is commenced within the 30-day period and is diligently pursued.
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B. If Landlord does not actually receive at the place designated for payment any rent due under this lease
within 5 days after it is due, Tenant will be in default. If Tenant fails to comply with this lease for any
other reason within 10 days after Landlord notifies Tenant of its failure to comply, Tenant will be in
default.
C. If Tenant is in default, Landlord may: (i) terminate Tenant's right to occupy the leased premises by
providing Tenant with at least 3 days written notice; and (ii) accelerate all rents which are payable
during the remainder of this lease or any renewal period without notice or demand. Landlord will
attempt to mitigate any damage or loss caused by Tenant's breach by using commercially reasonable
means. If Tenant is in default, Tenant will be liable for
(1) any lost rent;
(2) Landlord's cost of reletting the leased premises, including brokerage fees, advertising fees, and
other fees necessary to relet the leased premises;
(3) repairs to the leased premises for use beyond normal wear and tear,
(4) all Landlord's costs associated with eviction of Tenant, such as attorney's fees, court costs, and
prejudgment interest;
(5) all Landlord's costs associated with collection of rent such as collection fees, late charges, and
returned check charges;
(6) cost of removing any of Tenant's equipment or fixtures left on the leased premises or Property;
(7) cost to remove any trash, debris, personal property, hazardous materials, or environmental
contaminants left by Tenant or Tenant's employees, patrons, guests, or invitees in the leased
premises or Property;
(8) cost to replace any unreturned keys or access devices to the leased premises, parking areas, or
Property;
(9) any other recovery to which Landlord may be entitled under this lease or under law.
21. ABANDONMENT, INTERRUPTION OF UTILITIES, REMOVAL OF PROPERTY, AND LOCKOUT:
Chapter 93 of the Texas Property Code governs the rights and obligations of the parties with regard to: (a)
abandonment of the leased premises; (b) interruption of utilities; (c) removal of Tenant's property; and (d)
"lock-out" of Tenant.
22. HOLDOVER: If Tenant fails to vacate the leased premises at the time this lease ends, Tenant will become V
tenant-at-will and must vacate the leased premises immediately upon receipt of demand from Landlord.
No holding over by Tenant, with o without the consent of Landlord, will extend this lease.-Teeent-mill--
. Rent for
any holdover period will be 2 times the base monthly rent plus any additional rent calculated on a daily
basis and will be immediately due and payable daily without notice or demand.
23. D SECURITY INTEREST: To secure Tenant's perforrnan se, c
Tenant arants to Landlor a le t against nexem t pgrsonal 12ropeqy
that is in the leased premises or .ase Is for the purposes of the
Unifor e. andlord may file a coov of this lease as a financing statemen.
24. ASSIGNMENT AND SUBLETTING: Landlord may assign this lease to any subsequent owner of the
Property. Tenant may not assign this lease or sublet any part of the leased premises without Landlord's
written consent. An assignment of this lease or subletting of the leased premises without Landlord's written
consent is voidable by Landlord. If Tenant assigns this lease or sublets any part of the leased premises,
Tenant will remain liable for all of Tenant's obligations under this lease regardless if the assignment or
sublease is made with or without the consent of Landlord.
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25. RELOCATION:
• A. By providing Tenant with not less than 90 days advanced written notice, Landlord may require Tenant
to relocate to another location in the Property, provided that the other location is equal in size or larger
than the leased premises then occupied by Tenant and contains similar leasehold improvements.
Landlord will pay Tenant's reasonable out-of-pocket moving expenses for moving to the other location.
"Moving expenses" means reasonable expenses payable to professional movers, utility companies for
connection and disconnection fees, wiring companies for connecting and disconnecting Tenant's office
equipment required by the relocation, and printing companies for reprinting Tenant's stationary and
business cards. A relocation of Tenant will not change or affect any other provision of this lease that is
then in effect, including rent and reimbursement amounts, except that the description of the suite or
unit number will automatically be amended.
• B. Landlord may not require Tenant to relocate to another location in the Property without Tenant's prior
consent.
26. SUBORDINATION:
A. This lease and Tenant's leasehold interest are and will be subject, subordinate, and inferior to:
(1) any lien, encumbrance, or ground lease now or hereafter placed on the leased premises or the
Property that Landlord authorizes;
(2) all advances made under any such lien, encumbrance, or ground lease;
(3) the interest payable on any such lien or encumbrance;
(4) any and all renewals and extensions of any such lien, encumbrance, or ground lease;
(5) any restrictive covenant affecting the leased premises or the Property; and
(6) the rights of any owners' association affecting the leased premises or Property.
B. Tenant must, on demand, execute a subordination, attomment, and non-disturbance agreement that
Landlord may request that Tenant execute, provided that such agreement is made on the condition that
this lease and Tenant's rights under this lease are recognized by the lien-holder.
27. ,
—execute and dalivap to �-2- ease,
28. CASUALTY LOSS: Tenant Landlord
initials Initials
A. Tenant must immediately notify Landlord of any casualty loss in the leased premises, Within 20 days
after receipt of Tenant's notice of a casualty loss, Landlord will notify Tenant if the leased premises are
less than or more than 50% unusable, on a per square foot basis, and if Landlord can substantially
restore the leased premises within 120 days after Tenant notifies Landlord of the casualty loss.
B, If the leased premises are less than 50% unusable and Landlord can substantially restore the leased
premises within 120 days after Tenant notes Landlord of the casualty, Landlord will restore the leased
premises to substantially the same condition as before the casualty. If Landlord fails to substantially
restore within the time required, Tenant may terminate this lease.
C. If the leased premises are more than 50% unusable and Landlord can substantially restore the leased
premises within 120 days after Tenant notifies Landlord of the casualty, Landlord may: (1) terminate
this lease; or (2) restore the leased premises to substantially the same condition as before the
casualty. If Landlord chooses to restore and does not substantially restore the leased premises within
the time required, Tenant may terminate this lease.
D. If Landlord notifies Tenant that Landlord cannot substantially restore the leased premises within 120
days after Tenant notifies landlord of the casualty loss, Landlord may: (1) choose not to restore and
terminate this lease; or (2) choose to restore, notify Tenant of the estimated time to restore, and give
Tenant the option to terminate this lease by notifying Landlord within 10 days.
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E. If this lease does not terminate because of a casualty loss, rent will be reduced from the date Tenant
notifies Landlord of the casualty loss to the date the leased premises are substantially restored by an
amount proportionate to the extent the leased premises are unusable.
29. CONDEMNATION: If after a condemnation or purchase in lieu of condemnation the leased premises are
totally unusable for the purposes stated in this lease, this lease will terminate. if after a condemnation or
purchase in lieu of condemnation the leased premises or Property are partially unusable for the purposes
of this lease, this lease will continue and rent will be reduced in an amount proportionate to the extent the
leased premises are unusable. Any condemnation award or proceeds in lieu of condemnation are the
property of Landlord and Tenant has no claim to such proceeds or award.Tenant may seek compensation
from the condemning authority for its moving expenses and damages to Tenant's personal property.
30. ATTORNEY'S FEES: Any person who is a prevailing party in any legal proceeding brought under or
related to the transaction described in this lease is entitled to recover prejudgment interest, reasonable
attorney's fees, and all other costs of litigation from the nonprevailing party.
31. REPRESENTATIONS:
A. Tenant's statements in this lease and any application for rental are material representations relied upon
by Landlord. Each party signing this lease represents that he or she is of legal age to enter into a
binding contract and is authorized to sign the lease. If Tenant makes any misrepresentation in this
lease or in any application for rental, Tenant is in default.
B. Landlord is not aware of any material defect on the Property that would affect the health and safety of
an ordinary person or any environmental hazard on or affecting the Property that would affect the
health or safety of an ordinary person, except:
C. Each party and each signatory to this lease represents that: (1) it is not a person named as a Specially
Designated National and Blocked Person as defined in Presidential Executive Order 13224; (2) it is not
acting, directly or indirectly, for or on behalf of a Specially Designated and Blocked Person; and (3) is
not arranging or facilitating this lease or any transaction related to this lease for a Specially Designated
and Blocked Person. Any party or any signatory to this lease who is a Specially Designated and
Blocked person will indemnify and hold harmless any other person who relies on this representation
and who suffers any claim, damage, loss, liability or expense as a result of this representation.
32. BROKERS:
A. The brokers to this lease are:
AMERICAN BEAT. ESTATE - KELLI MANESS
Cooperating Broker License W. Principal Broker License No.
3550 DOKLEN BEAUMONT, TEXAS 77706
Address Address
(409)860-2914 (409) 866-4473
Phone Fax Phone Fax
kmaness @americanrealestate.com
-mail E-mail
Cooperating Broker represents Tenant_ Principal Broker: (Check only one box)
d represents Landlord only.
d representsTenant only.
[� is an intermediary between Landlord and Tenant.
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B. Fees:
91 (1) Principal Broker's fee will be paid according to: (Check only one box),
lZI (a) a separate written commission agreement between Principal Broker and:
Q Landlord Q Tenant.
[� (b) the attached Addendum for Broker's Fee.
(2) Cooperating Broker's fee will be paid according to: (Check only one box).
[� (a) a separate written commission agreement between Cooperating Broker and:
Q Principal Broker Q Landlord Q Tenant.
g (b) the attached Addendum for Broker's Fee,
33. ADDENDA: Incorporated into this lease are the addenda, exhibits and other information marked in the
Addenda and Exhibit section of the Table of Contents. If Landlord's Rules and Regulations are made part
of this lease, Tenant agrees to comply with the Rules and Regulations as Landlord may, at its discretion,
amend from time to time.
34. NOTICES: All notices under this lease must be in writing and are effective when hand-delivered, sent by
mail, or sent by facsimile transmission to:
Tenant at the leased premises,
and a copy to: CITY of BFAUMONT
Address: P.O. 130X_ 3827 BEAC7M . TX 77704
Phone: Fax:
[�Tenant also consents to receive notices by e-mail at:
ndlo at: DAVID DERH&20UTIA
Address: 8114 High Terrace Sugar Land, TX 77479
Phone: Fax.
and a copy to:DAVID DEEHAROUTIAN
Address: B-MAIL• david _derharo-utiga@online.de
Phone: (495)141-980006 l=ax:
Landlord also consents to receive notices by e-mail at:
35. SPECIAL PROVISIONS:
MONTHLY RENTS TO BE MAILED TO:
STACY TYWATER
BEAUMONT AREA EDUCATORS FEDERAL CREDIT UNION
P.O. BOX 751
BEAUMONT, TEXAS 77704
All improvements to 8155 Phelan will stay with the property.
If existing carpet is removed, it should be replaced.
Tenant responsible for carport & electricity to carport.
Either party may terminate this lease by providing thirty (30)
days written notice.
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X AGREEMENT OF PARTIES:
A. Entire Agreement This lease contains the entire agreement between Landlord and Tenant and may not
be changed except by written agreement.
B. Binding Effect This lease is binding upon and inures to the benefit of the parties and their respective
heirs, executors, administrators, successors, and permitted assigns.
C. Joint and Several: All Tenants are jointly and severally liable for all provisions of this lease. Any act or
notice to, or refund to, or signature of, any one or more of the Tenants regarding any term of this lease,
its renewal, or its termination is binding on all Tenants.
D. Controlling Law: The laws of the State of Texas govern the interpretation, performance, and
enforcement of this lease.
E. Severable Clauses: If any clause in this lease is found invalid or unenforceable by a court of law, the
remainder of this lease will not be affected and all other provisions of this lease will remain valid and
enforceable.
F. Waive r Landlord's delay, waiver, or non-enforcement of acceleration, contractual or statutory lien,
rental due date, or any other right will not be deemed a waiver of any other or subsequent breach by
Tenant or any other term in this lease.
G. Quiet Enjoyment: Provided that Tenant is not in default of this lease, Landlord covenants that Tenant
will enjoy possession and use of the leased premises free from material interference.
H. Force Maieure: If Landlord's performance of a term in this lease is delayed by strike,lock-out, shortage
of material, governmental restriction, riot, flood, or any cause outside Landlord's control, the time for
Landlord's performance will be abated until after the delay.
I. Time: Time is of the essence. The parties require strict compliance with the times for performance.
Brokers are not qualified to render legal advice, property inspections, surveys, engineering studies,
environmental assessments, tax advice, or compliance inspections. The parties should seek experts to
render such services. READ THIS LEASE CAREFULLY. If you do not understand the effect of this Lease,
consult your attorney BEFORE signing.
CITY OF BEAUMONT DAVID DERHAROUTIAm
Tenant Landlord
By By
Rate Date
Printed Name xyie Saves, City Manager Printed Name DAVID DERHAROUTIAN
Title Title
Tenant Landlord
By By
Printed Name Date Printed Name Date
Title Title
(TAR-2101)5-26-06
Page 14 of 14
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Legal Department
P.O. Box 3827
A K. Beaumont,Texas 77704-3827
Beaumont (409) 880-3715
CZtr� of Beaumont Fax(409) 880.3121
March 3, 2010
To Whom It May Concern
The City of Beaumont is currently self-insured for all lines of coverage normally
made available under the Texas Business Auto Policy. Comprehensive and collision
accidents are paid as normal operating expenses. The City has a self-insured trust fund
from which it pays all liability claims. The City currently purchases insurance for real and
personal property. All real and personal property are protected by all risk type coverage
including flood. Real and personal property are subject to a $50,000 deductible.
If we can be of further assistance to you or provide you with additional information,
please do not hesitate to contact us.
Very truly yours,
Matthew Martin, AIC, ARM
Liability Administrator
MM:rw