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HomeMy WebLinkAboutRES 01-156 RESOLUTION NO. 01-156 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 ten (10)-year agreement with Jeff Hughes for the Tyrrell Park Horse Stables. The agreement is substantially in the form attached hereto. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 191 day of June, 2001. Mayor- r Draft State of Texas § County of Jefferson § Development and Lease Agreement THIS AGREEMENT is made and entered into this day by and between the City of Beaumont, a municipal corporation of the State of Texas (herein referred to as"City") and Tyrrell Stables, Inc., a corporation of the State of Texas owned by Jeff Hughes, (herein referred to as"Tenant'), for the improvement and lease of property within Tyrrell Park in Beaumont, Texas and being described in Exhibit "A" attached (herein referred to as"Property"). WHEREAS,City has right,title and interest in and to the facilities and privileges hereinafter granted, and has full power and authority to enter into this Agreement in respect thereof, and WHEREAS,Tenant wishes to renovate City Property and thereafter lease Property for an equestrian oriented day camp and horse rental operation for the benefit of the citizens of Beaumont and Southeast Texas. NOW,THEREFORE,inconsideration ofthe mutual covenants and considerations herein contained, City lets and demises to Tenant and Tenant takes from City the Property and all described rights incident thereto, subject to the following: Article 1 TERM OF AGREEMENT 1.1 The primary term of this agreement shall be ten(10)years,commencing on July 1,2001 and shall terminate on June 30, 2011, if not sooner terminated as herein provided. 1.2 Upon expiration of the primary term, the City Manager or his designee may extend this Agreement for an additional five(5) year period. The terms and conditions of the extended term must be agreed upon in writing by both parties within sixty (60) days prior to the Agreements termination. 1.3 Tenant agrees that upon expiration of the primary term or any extension of this Agreement or sooner cancellation thereo& the Property will be delivered to City in good condition, reasonable wear and tear accepted. -1- EXHIBIT "A" Article 2 RENTAL, FEES AND PAYMENT 2.1 Tenant shall keep and maintain a complete and detailed accurate set of books and records of daily entry accounting for receipts related to the operation of the Property and such books and records shall be available for examination by City at any and all reasonable times. 2.2 During the primary term of this Agreement, Tenant shall not be required to make monthly payments to City as consideration of its interest in the lease. After completion and acceptance of the renovations to Property by City,as provided in Exhibit`B",the Tenant will donate the renovations to the City in lieu of rental for the primary term of this Agreement. Article 3 OBJECTIVES AND PURPOSE OF AGREEMENT 3.1 For the term of the Agreement,Tenant shall be qualified,authorized and herewith designated official in possession and control of all real property known as Property and as shown in Exhibit "A". The Property will continue to be owned by the City during the term of this Agreement and any extension thereof. 3.2 Tenant shall, at his own cost and expense, operate, manage and maintain said Property and surrounding grounds in a fit and proper order, suitable for equestrian and day camping activities only. Any other uses of the Property contemplated by Tenant must receive prior written approval by the City Manager or his designee. 3.3 Tenant shall be an independent contractor, not an employee or agent of City and all persons employed by Tenant shall be his employees and shall not be employees of City. Tenant shall employee only qualified competent persons. Article 4 OBLIGATIONS OF TENANT 4.1 Tenant shall at his own cost and expense: ' 4.1.1 furnish all personnel and labor necessary for the normal maintenance and operation of said Property, 4.1.2 acquire and banish all equipment, including tractors, trailers, mowers and similar equipment and tools necessary to operate and maintain said Property, 4.2 Tenant shall furnish all equestrian equipment and a minimum of six(6)horses,tack,feed and similar equipment and supplies necessary to operate and maintain equestrian activities and rentals. -2- 4.3 Property and all livestock boarded or owned by Tenant, clients or other individuals shall be f maintained and kept in strict accordance with safety programs, rules, regulations and operating procedures, and any amendments thereto, established by the State of Texas, V.T.C.A., Occupations Code, Chapter 2053. Riding Stables (herein referred to as "Standards") for commercial horse operations, attached hereto as Exhibit "C", or any applicable laws, rules or regulations governing riding stables. Any horse shows, camps, clinics, horse rentals, horse and carriage rides, covered wagon rides, barn tours, pony rides, etc., offered,promoted,or sponsored by Tenant shall be conducted in strict accordance with the guidelines and safety procedures set by the Standards, or any amendments thereof. 4.4 Tenant shall obtain and maintain a certificate of registration issued by the Texas Department of Health, in accordance with the V.T.C.A., Occupations Code, Chapter 2053. Riding Stables, or as may be amended,prior to the start of any operations at the Property. 4.5 Tenant shall report violations of any equestrian laws,and specifically lack of proof of Coggins immunizations, to the State of Texas Animal Health Commission. 4.6 Tenant shall establish rules and regulations for horse rental and stable operations, as well as a schedule of all rental fees, horse training fees,riding lessons, camping fees,equipment and retail sales,and all other revenues to be derived from Tenant's operation of the Property and obtain written approval of the City Manager prior to the effective date thereof. Such approval will not be unreasonably withheld. 4.7 Tenant shall confine all riding activities to the Property and designated riding trails;no riding is allowed on Tyrrell Park property except in the Property areas which are encompassed by the Agreement. Tenant may be granted use of other areas only by written approval of the City Manager or his designee. 4.8 Tenant and his customers, clients and patrons shall drive and park only in designated areas; vehicles are only permitted on grass areas for the temporary transport of supplies and equipment. 4.9 Tenant shall be responsible for the control of A borne vectors within the Property and for removing manure from Property at least once per month. Stored manure must be limed and sprayed to control flies. Use of pesticides shall be in accordance with all applicable laws and regulations. Manure shall be removed from stalls on a daily basis at minimum Tenant shall adhere to all regulations governing its disposaL 4.10 Tenant shall be responsible for keeping Property free of any liter, trash or debris and shall adhere to all regulations governing its disposal. 4.11 Tenant shall be responsible for locking the side gates at the Property and the Downs Road park entrance at dark each day. -3- 4.12 Tenant shall obtain and maintain a license issued by the Texas Department of Health, in accordance with the State of Texas,V.T.C.A.,Health and Safety Code,Chapter 141. Youth Camps, or as may be amended,prior to the start of any operations at the Property. All State Department of Health rules and orders and all other applicable laws governing youth camps must be strictly adhered to. 4.13 Tenant agrees to conform to all policies, rules and regulations of the City, and all City ordinances, and State and Federal statutes. 4.14 Tenant shall promptly pay as it becomes due and payable,all indebtedness,obligation or other amounts owing or incurred by him under this agreement. 4.15 Tenant shall submit a report of attendance,events sponsored and participation in activities at the Property to the designated City department by the seventh (7) day of each month. 4.16 Tenant shall be responsible for the timely payment of all utility services, including but not limited to electrical, telephone, water and sanitary services. 4.17 Tenant shall be responsible for maintenance of buildings and property, including plumbing, electrical and air conditioning systems. City is responsible for roof systems and exterior walls of house and stables only. Damages caused by Tenant, Tenants guests or by Tenants negligence shall be the responsibility of Tenant. _ ) 4.18 Tenant shall comply with the risk reduction program standards as set forth by the North American Horsemen's Association, as shown in Exhibit "D", for Horse Stables and Farms, Boarding,Breeding,Leasing,Sales,Training and Lessons,and Horse Rental and Trail Rides, Guides and Outfitters, Dude Ranches and Resorts, and Horse Related Camps, as may be amended. Article 5 INDEMNITY AND INSURANCE y 5.1 Indemnity 5.1.1 Tenant hereby indemnifies and hold harmless the City against any and all claims, obligations, costs, judgements and attorney's fees arising from or growing out of the operation and maintenance of the Property, stables, or day camp. Such indemnity specifically includes claims,law suits or causes of action and alleged negligent acts and omissions of the City, its officers, agents and employees. 5.2 Insurance _,1 -4- 5.2.1 Prior to the execution of this Agreement,Tenant shall furnish a completed Insurance Certificate to the City Clerk. The certificate shall be completed by an agent authorized to bind the named underwriter(s)to the coverages,limits,and termination provisions shown thereon. City shall have no duty to pay or perform under this contract until such certificate is received by the City, and no officer or employee or the City shall have authority to waive this requirement. 5.2.2 Subject to Tenant's right to maintain reasonable deductibles in such amounts as are approved by the City,Tenant shall obtain and maintain in full force and effect for the duration of this Agreement, and any extension thereof, at Tenant's sole expense, insurance coverage written by companies approved by the State of.Texas and acceptable to the City, in the following type(s) and amounts: 5.2.2.1 Workers' Compensation and Employer's Liability - Statutory Amount. 5.2.2.2 Commercial General (Public) Liability - Combined single limit for bodily injury and property damage of$500,000 per occurrence or its equivalent with an aggregate limit of$1,000,000. Including coverage for the following: 5.2.2.2.1 Premises operations, 5.2.2.2.2 Independent contractors Products/Completed ' operations, 5.2.2.2.3 Personal injury, 5.2.2.2.4 Contractual liability, 5.2.2.3 Comprehensive Automobile Liability -for vehicles used by Tenant in his operations hereunder-Combined single limit for bodily injury and property damage of$500,000 per occupance or equivalent. 5.2.2.4 Fire and Extended Cover e=Tenant shall provide fire and extended coverage insurance on he Property showing both the City and the Tenant as insured Such insurance shall be in the minimum amount of $100,000 with a deductible not exceeding one percent(I%). Tenant shall provide City with a certificate for such insurance and Tenant shall maintain such insurance and pay the premium for such during the term of this agreement. Proceeds of such issuance shall be paid in accordance with Paragraph 7.4 hereof 5.2.3 Tenant agrees with respect to the above required insurance, all insurance contracts and certificate(s) of insurance will contain and state, in writing, on the certificate or its attachment, the following required provisions: l -� 5.2.3.1 Name the City of Beaumont and its officers, employees, and elected representatives as additional insured(s),as the interest of each insured may appear, to all applicable coverage. 5.2.3.2 Provide 15 days notice to City for cancellation, non-renewal, or material change. 5.2.3.3 Tenant agrees to waive subrogation against the City, its officers, employees, and elected representatives for injuries, including death, property damage,or any other loss to the extent same may be covered by the proceeds of insurance. 5.2.3.4 Provide that all provisions of this Agreement concerning liability, duty,and standard ofcare together with the indemnification provision, shall be underwritten by contractual liability coverage sufficient to include such obligations within applicable policies. Article 6 TERMINATION 6.1 Termination by City 6.1.1 In the event that the City determines, in its judgement, that any one or more of the provisions of this contract are being breached or violated by Tenant, it shall notify Tenant thereof in writing,therein setting forth such breach or violation and a sufficient time for correction. In the event Tenant fails to correct such breach or violation in the time allowed, such failure shall, at the sole option of the City, serve to terminate this Agreement after thirty(30)days written notice. Such termination of the Agreement by City shall not deprive it of its lawful rights and pursuits to recover any and all amounts owing to it by Tenant up to and including the date of such termination. 6.1.2 Upon termination of this Agreement, ity shall have the right of reentry and may remove all persons and property from Me premises and may store such property at a public warehouse or elsewhere at the expense of and for the account of Tenant. Any and all improvements made by Tenant to Property become the property of City. 6.2 Termination by Tenant 6.2.1 Tenant shall have the right to terminate this Agreement upon ninety(90)days written notice of its election to do so. Should Tenant terminate this Agreement, any and all improvements made by Tenant to Property become the property of City. Article 7 -6- �.� IMPROVEMENTS TO PROPERTY 7.1 Improvements by Tenant 7.1.1 Tenant shall be responsible for completion of all the improvements to the Property as shown on Exhibit `B" attached hereto and made a part hereof as if copied verbatim herein (the "Improvements"). The Improvements shall be completed to the satisfaction of the City of Beaumont City Manager or his designee. In completing the Improvements, Tenant shall secure quality contractor(s) licensed and bonded to do business in Beaumont, Texas. Prior to award of any such contracts, Tenant shall obtain approval from the City Manager of City or his designee. 7.1.2 All Improvements to Property must be in accordance with City, State and Federal laws, regulations and codes applicable to the construction, renovation and improvement of the structures and grounds. Due to the public nature of Property, State regulations set forth by the Texas Department of Licensing and Regulations applicable to Architectural Barriers must be followed. Prior to commencement of Improvements to public areas, approval of the plans and specifications must be received by the Texas Department of Licensing and Regulations and City. 7.1.3 Tenant is solely responsible for all payments, claims and costs associated with Improvements unless otherwise provided for in this agreement. - 7.1.4 Any improvements and alterations other than those contained in Paragraph 7.1.1 must be approved by City prior to commencement. 7.1.5 Tenant shalt require the contractor(s) chosen to construct the Improvements to furnish a performance and payment bond covering all work to be done under this Development and Lease Agreement which exceeds $25,000 in any one contract. Contracts for less than $25,000 shall provide for payment in a lump sum at the conclusion and acceptance of the work. v 7.1.6 City shall require an Affidavit of All A Paid from Tenant prior to the issuance of a building Certificate of Occupancy for the stable building and caretaker's house. 7.2 Improvements by City 7.2.1 Furnish inmate labor and equipment, as available, to assist with demolition and remove old and damaged materials from within the stable area. 7.2.2 Furnish labor to clean exterior surfaces of the barn,caretaker's house, garage, fence and maintenance building. After cleaning,paint all exterior wood surfaces which have been cleaned. All paint supplies,including paint,brushes,solvents,primers and other -7- miscellaneous materials will be provided by Tenant. 7.2.3 Provide a security cable across the front length of the Property to restrict automobile access. Any gates for such security cable will be provided by Tenant. 7.2.4 Provide partial access and use ofthe maintenance storage buildings for equipment and storage. 7.2.5 Provide grounds maintenance, such as mowing and trimming, to large pasture areas of the stable facility and riding paths throughout the park. Tenant is responsible for grounds maintenance to show arena area and area surrounding the caretaker's house. Areas surrounding caretaker's house shall be maintained in accordance with City park policies. 7.2.6 The City may, at its own cost and expense, make capital improvements to the Property, subject to the appropriation of City funds. The City shall consult with Tenant prior to making said capital improvements. 7.3 Upon termination of this Agreement,or any extension thereof,all improvements to Property shall become the property of the City. 7.4 Should the Improvements or Property be damaged or destroyed by fire or other casualty,the decision to reconstruct the facility shall be solely that of the City Manager or his designee. If the City decides not to reconstruct the Property, insurance monies available arising from insurance provided by Tenant to protect against such casualty loss may be retained by Tenant. Should City decide to reconstruct the Property, Tenant hereby agrees to pay over to City all insurance payments received by Tenant arising from the damage or destruction of the Property. Article 8 GENERAL PROVISIONS 8.1 The services called for herein shall be performeg by Tenant as an independent contractor,and City shall not be liable for the manner of discharge of such services. 8.2 Tenant shall be an independent contractor, not an employee of the City, and all persons employed by Tenant shall be his employees and shall not be employees of the City. 8.3 This Agreement shall not be transferred or assigned to any party,in any manner whatsoever, by Tenant without the prior written approval of the City Manager or his designee. Any sale which transfers the majority shares of the corporation's stock must have prior written approval of the City Manager or his designee. -8- 8.4 No waiver by either party of a breach by the other shall be construed or held to be a waiver by such party of any succeeding breach by the other party of the same or any covenant, condition, or restriction herein contained. 8.5 Where changes to activities or areas included in this Agreement are made,such modifications must be in writing and signed by both parties. 8.6 If any term or provision of this Agreement shall, to any extent, be invalid or unenforceable, the remainder of this lease shall not be affected thereby and each other term and provision of this lease shall be valid and be enforced to the fullest extent permitted by law. 8.7 With respect to the Property, Tenant assures that it will undertake an affirmative action program to ensure that no person shall on the grounds of race, creed, color, sex, or national origin by excluded from participating in any employment activity. Tenant assures that no person shall be excluded on these grounds from participation in or receiving the services or benefits of any program or activity covered by this Agreement. 8.8 Any written notice to be given hereunder by either party to the other party shall be affected by certified mail,return receipt requested. Either party may change the address for notice to it by giving written notice of such change in accordance with the provisions of this section. 8.8.1 Notice to Tenant shall be sufficient if made or addressed to: Jeff Hughes 8.8.2 Notice to City shall be sufficient if made or addressed to: City Manager City of Beaumont P. O. Box 3827 Beaumont, Texas 77704 ' 8.9 This Agreement constitutes the entire agreement between the parties and no changes, amendments or modifications hereof shall be valid or recognized unless in writing and signed by both parties. 8.10 The Caretaker's House on the Property may only be occupied by Tenant unless written approval for occupancy by others is obtained from the City Manager or his designee. IN WITNESS WHEREOF,the parties hereto have caused this Agreement to be executed as of the date first mentioned above at Beaumont, Texas. -9- CITY OF BEAUMONT: TYRRELL STABLES, INC. Stephen J. Bonczek, City Manager Jeff Hughes, Owner r' A -10-