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HomeMy WebLinkAboutRES 05-187 RESOLUTION NO. 05-187 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to renew a lease agreement for a period of three years for office and warehouse space located at 2430 West Cardinal Drive, Suite C, Beaumont, Texas, for the Southeast Texas Auto Theft Task Force (ATTF). The lease agreement is substantially in the form attached hereto as Exhibit "A" and made a part hereof for all purposes . PASSED BY THE CITY COUNCIL of the City of Beaumont this the 30th day of August, 2005. t / � f Mayor Guy N. Goodson - LEASE AGREEMENT This is a Lease Agreement made and entered into this day of 2005 by and between Bar C Ranch Company, a Texas Corporation, herein referred to as "LANDLORD" and City of Beaumont/Southeast Texas Auto Theft Task Force, herein referred to as "TENANT." ARTICLE I Section 1.01 Lease Premises (a) Landlord hereby leases and demises to the Tenant, and the Tenant hereby takes and leases from the Landlord,subject to the terms and conditions hereof,warehouse and office space consisting of approximately Three Thousand Nine Hundred(3,900)square feet located at 2430 West Cardinal Drive, Suite C, as shown on the plat attached as Exhibit "A" (herein referred to as the "Leased Premises" or the "Demised Premises"). (b) During the term of this Lease the Tenant shall have the non-exclusive right to use with others the parking area and access driveways serving the building in which the Leased Premises are situated,subject to the Landlord's right to impose reasonable limitations for the purpose of assuring equitable use by all occupants and their invitees. Section 1.02 Term (a) The primary term of this Lease shall be 36 calendar months, plus the partial month, if any, after the commencement of the Lease term. (b) The Tenant may terminate this Lease at any time by giving at least three (3) months notice in writing to the Landlord and no rental shall accrue after the effective date of termination. (c) This Lease shall be automatically renewed from year to year without further notice unless and until the Tenant shall give notice of termination in accordance with subparagraph (b) above; provided that adequate appropriations are available from year to year for payment of rentals, and provided further that this Lease shall in no event extend beyond September 30, 2008. (d) The term of this Lease and the Tenant's obligation to pay rent hereunder shall commence on October 1, 2005. ARTICLE 11 Section 2.01 Rent During the term of this Lease, the Tenant agrees to pay to the Landlord annual rent in the amount of Twenty Thousand Forty Dollars($20,040.00)payable in monthly installments of Sixteen Hundred Seventy Dollars ($1,670.00) each. The first installment shall be payable on the commencement date of this Lease and on the first day of each month thereafter. Rental shall be payable at the Landlord's office,2615 Calder, Suite 1050,Beaumont,Texas 77702,or at such other Page 1 of 9 EXHIBIT "A" place in Beaumont, Texas, as the Landlord may direct by written notice to the Tenant. Section 2.02 Taxes, Insurance and Maintenance (a) Landlord is responsible for all taxes and similar assessments against the land and the building of which the Leased Premises are a part; and premiums applicable to hazard insurance covering the building of which the Leased Premises are a part of; and charges for dumpster serving the Leased Premises. (b) The interior of the Leased Premises,including but not limited to air conditioning filters,shall be maintained under normal conditions at the sole cost and expense of the Tenant and kept by the Tenant in good working condition throughout the term of the Lease. Landlord shall have the right to enter upon the Leased Premises at reasonable times during business hours for the purpose of inspecting the premises in order to determine that maintenance is being properly performed. (c) The foundation,exterior walls,air conditioning equipment and roof of the building in which the Leased Premises are situated shall be maintained by the Landlord, except for damage thereto resulting from acts or negligence of the Tenant or Tenant's agents or invitees. Section 2.03 Utilities at Tenant's Cost Tenant shall be solely responsible for and promptly pay all charges for heat, water, gas, electricity, telephone service or sewerage service or any other utility used or consumed in the Leased Premises. Section 2.04 Landlord Not Responsible for Utilities In no event shall Landlord be liable for an interruption or failure in the supply of any such utility services to the Leased Premises to the extent said interruption or failure is not directly attributable to the negligence of the Landlord. Section 2.05 Taxes on Personal Property The Tenant shall be responsible for and shall pay before delinquency all taxes assessed during the term of this Lease against any leasehold interest or personal property of any kind, owned by or placed in, upon or about the Leased Premises by the Tenant. ARTICLE III Section 3.01 Use of Premises The Tenant shall use the Leased Premises solely for the purpose of conducting the business of the detection and administration of stolen vehicles and related items and all related uses,but for no other purpose or purposes,without first obtaining the written consent of Landlord. Tenant shall promptly and continuously comply with all laws, orders and regulations of the State, County and City affecting the use, occupation, safety and cleanliness of the premises and the equipment of Tenant. Tenant further agrees that during the entire term of this Lease it will remain open for business in a normal and ordinary fashion, during usual and normal business hours,without interruption,except during such time as an interruption may be caused by virtue of damages to the premises. No capital improvement costs are considered to be a part of this Lease Agreement unless specifically agreed Page 2 of 9 to in writing. Section 3.02 Assigning and Subletting Tenant shall not assign this Lease or sublet the Leased Premises or any part thereof without first obtaining the written consent of Landlord;and,if Landlord's consent is obtained,such consent shall not relieve Tenant of its obligations hereunder. ARTICLE IV Section 4.01 Loss and Damage Landlord shall not be liable for any damage to property of Tenant or others located on the Leased Premises,nor for the loss of or damage to any property of Tenant or of others by theft of others. All property of Tenant kept or stored on the Leased Premises shall be so kept or stored at the risk of the Tenant only. Landlord shall not be liable for any injury to persons resulting from any occurrence in, on, or arising out of the Leased Premises, unless caused by the acts of negligence of Landlord, its agents, employees or subcontractors. Section 4.02 Legal Fees The prevailing party shall also pay all costs, expense and reasonable attorney's fees that may be incurred or paid by Landlord in successfully enforcing the covenants and agreements in this Lease. Section 4.03 Liability Insurance Tenant is self-insured as to all liability and maintains an adequate self-insurance fund to pay such claims. As to liability claims resulting from the negligence of Tenant, Tenant will pay such claims and protect Landlord from such claims. ARTICLE V Section 5.01 Notices of Damages In the event the Leased Premises shall be damaged by fire, explosion, or any other type casualty, Tenant shall immediately give notice thereof to the Landlord. Section 5.02 . Damage From Insured Hazard If the damage is the result of a hazard covered by insurance, then the Landlord shall repair any damage restoring the Leased Premises,whereupon the Landlord shall be entitled to retain all hazard insurance. If the damage is caused by a non-insured hazard during the term of this Lease,then the Landlord shall have the election of terminating the Lease, or of repairing the damage, whereupon the Lease shall remain in full force and effect. During such time as the Leased Premises are untenantable by virtue of damage, rent shall be abated. Section 5.03 Total Condemnation If the whole of the Leased Premises shall be acquired or condemned by eminent domain, then the term of this Lease shall cease and terminate as of the date that title shall be divested of the Landlord, and all rentals (including taxes and insurance) shall be paid to that date, and Tenant shall have no Page 3 of 9 claim against the Landlord for the value of any unexpired term of this Lease. Section 5.04 Partial Condemnation If any part of the Leased Premises shall be acquired or condemned by eminent domain for any public or quasi-public use or purpose,and in the event that such partial taking or condemnation shall render the Leased Premises unsuitable for the business of the Tenant,then the term of this Lease shall cease and terminate as of the date of title vesting in such proceeding, and Tenant shall have no claim against Landlord for the value of any unexpired term of this Lease. In the event of a partial taking or condemnation which is not extensive enough to render the premises unsuitable for the business of the Tenant,then Landlord may,at its option,promptly make all necessary repairs and alterations necessary to put that portion of the Leased Premises in a condition comparable to its condition at the time of such condemnation less the portion lost in the taking, and in which event the terms and conditions of this Lease shall continue in full force and effect, except for adjustments to the rental reflecting actual changes in square footage of the premises. Section 5.05 Damages In the event of any condemnation or taking by eminent domain as herein before provided,whether whole or partial, the Tenant hereby expressly waives any right or claim to any part thereof. Although all damages in the event of any condemnation are to belong to the Landlord,whether such damages are awarded as compensation for diminution in value of the leasehold or to the fee of the Leased Premises, Tenant shall have the right to claim and recover from the condemning authority, but not the Landlord, such compensation as may be separately awarded or recoverable by Tenant in Tenant's own right, on account of any and all damage to Tenant's business by reason of the condemnation,and for or on account of,any cost or loss to which Tenant might be put in removing Tenant's merchandise, furniture, fixtures, leasehold improvements and equipment. ARTICLE VI Section 6.01 Quiet Enjoyment Upon payment by the Tenant of the rents herein provided,and upon the observance and performance of all covenants,terms and conditions on Tenant's part to be observed and performed,Tenant shall peaceably and quietly hold and enjoy the Leased Premises for the term hereby demised without hindrance or interruption by Landlord or any other person or persons lawfully or equitably claiming by,through or under the Landlord, subject,nevertheless, to the terms and conditions of this Lease. Section 6.02 Holding Over In the event Tenant remains in possession of the Leased Premises after the expiration of this Lease and without the execution of a new lease,it shall be deemed to be occupying in said premises as tenant from month-to-month at a rental equal to the rental herein provided and otherwise subject to all the conditions,provisions and obligations of this Lease insofar as the same are applicable to a month-to- month tenancy, subject to Landlord's right to increase rental as provided under the provisions of Texas law applicable to a month-to-month tenancy. Page 4 of 9 Section 6.03 Alterations, etc., by Tenant Tenant shall not make any structural alterations,additions or improvements to the Leased Premises without the prior written consent of Landlord, except the installation of unattached movable trade fixtures which may be made or installed without drilling, cutting or otherwise defacing the Leased Premises. All permanent alterations,additions, improvements and fixtures(other than unattached, movable trade fixtures) which may be made or installed by either party hereto upon the Leased Premises, shall remain upon and be surrendered with the premises and become the property of Landlord at the termination of this Lease. Tenant shall have the right to install, at its own expense, a sign or signs at the Leased Premises,subject to Landlord's approval as to size,design and general decor. Any sign shall be the property of the Tenant and must be removed at the end of the tenancy. Section 6.04 Surrender of Premises At the expiration of the tenancy herein created, Tenant shall surrender the Leased Premises in the same condition as the Leased Premises were in upon delivery of possession and completion of Landlord's construction under this Lease, ordinary wear and tear and damage from the elements excepted. The foregoing sentence shall be inapplicable to a termination occurring by virtue of provisions of sections 6.01 or 5.02 hereof. If requested by Landlord, Tenant shall remove all its trade fixtures, and any non-permanent alterations or improvements before surrendering the Leased Premises, and shall repair any damage to the Leased Premises caused thereby. Tenant's obligation to observe or perform this covenant shall survive the expiration or other termination of the term of this Lease. ARTICLE VII Section 7.01 Offset Statement Within ten days after request therefor by Landlord, or upon any sale, assignment or hypothecation of the Leased Premises by Landlord, if an offset statement shall be required from Tenant, Tenant agrees to deliver in recordable form a certificate to any proposed mortgagee or purchaser, or to Landlord, certifying(if such be the case)that this Lease is in full force and effect and that there are no defenses or offsets thereto, or stating those claimed by Tenant. Section 7.02 Attornment Tenant shall, in the event any proceedings are brought for the foreclosure of, or in the event of exercise of the power of sale under any mortgage made by the Landlord covering the Leased Premises, attorn to the purchaser upon any such foreclosure or sale and recognize such purchaser as the Landlord under this Lease. Section 7.03 Subordination It is agreed that the right and interest of Tenant under this Lease shall be subject and subordinate to any mortgages or deeds of trust that may hereafter be placed upon the Leased Premises, and to any and all advances to be made thereunder,and to the interest thereon,and all renewals,modifications, replacements and extensions thereof, if the mortgage or trustee named in said mortgages or deeds of trust shall elect by written notice delivered to Tenant to subject and subordinate the right and interest of the Tenant under this Lease to the lien of its mortgage or deed of trust and shall agree to Page 5 of 9 recognize this Lease of Tenant in the event of foreclosure if Tenant is not in default; but any mortgage or trustee may elect to give the rights and interest of the Tenant under this Lease priority over the lien of its mortgage or deed of trust. In the event of either such election, and upon notification by such mortgagee or trustee to Tenant to that effect, the rights and interest of the Tenant under this Lease shall be deemed to be subordinate to, or to have priority over, as the case may be,the lien of said mortgage or deed of trust,whether this Lease is dated prior to or subsequent to the date of said mortgage or deed of trust. Tenant shall execute and deliver whatever instruments may be required for such purposes, and in the event Tenant fails to do so within ten(10) days after demand in writing, Tenant does hereby make, constitute and irrevocably appoint Landlord as its attorney in fact and in its name, place and stead to do so. Section 7.04 Short Form Lease Landlord and Tenant each agree that at the request of either they will,following the commencement of the term of this Lease, execute and deliver a recordable short-form lease containing the basic provisions of this Lease, acknowledging that Tenant has accepted possession and this Lease is operative, and reciting the exact commencement date and termination date of this Lease. ARTICLE VIII Section 8.01 Waste or Nuisance Tenant shall not commit or.suffer to be committed any waste upon the Leased Premises or any nuisance or other act or thing which may disturb the quiet enjoyment of any other tenant of Landlord in the proximity of the Leased Premises. Section 8.02 Governmental Regulations Tenant shall,at Tenant's sole cost and expense,comply with all requirements and regulations of all county, municipal, state, federal and other applicable governmental authorities, now in force or which may hereafter be in force to the extent that the conditions of this Lease are not changed, pertaining to the said premises,and shall faithfully observe in the use of the premises all municipal and county ordinances and state and federal statutes now in force or which may hereafter be in force. ARTICLE IX Section 9.01 Acts of Default Any of the following shall constitute an event of default by the Tenant: (a) Failure of Tenant to pay all rental and other charges due hereunder within 15 days after same shall become due; or (b) Failure by Tenant to perform any of the other terms,conditions,covenants or obligations of Tenant under this Lease, if such failure shall continue for more than 30 days after written notice thereof shall have been given by the Landlord to the Tenant;provided,however,that if each failure cannot be reasonably cured within thirty (30) days, Tenant shall not be in default if Tenant commences to cure such failure within the thirty(30)day period and in good faith continues to cure Page 6 of 9 each failure; or (c) The Tenant becoming bankrupt or insolvent,or filing any debtor proceedings,or seeking any type of debtor relief,or the filing against the Tenant in any court pursuant to any statute either of the United States or of any other state a petition in bankruptcy or insolvency or for an arrangement or for the appointment of a receiver or trustee for all or a portion of Tenant's property, or Tenant making an assignment for the benefit of creditors,or petitioning for or entering into an arrangement with respect to its creditors; or (d) Abandonment of the Leased Premises by the Tenant; or (e) Any act or omission by the Tenant which creates or purports to create a lien upon the Leased Premises. Nothing herein shall preclude Tenant's right to seek an equitable recovery for any default by Landlord of any provisions of this Lease. Section 9.02 Landlord's Remedies (a) Upon a default by Tenant, the Landlord shall have the right to re-enter and take possession of the Leased Premises. Should Landlord elect to re-enter, as herein provided, or should it take possession pursuant to legal proceedings or pursuant to any notice provided for by law,it may either terminate this Lease or it may from time to time without terminating this Lease, make such alterations and repairs as may be necessary in order to re-let the premises, and re-let said premises or any part thereof for such term or terms (which may be for a term extending beyond the term of this Lease)and at such rental or rentals and upon such other terms and conditions as Landlord in its sole discretion may deem advisable; upon each such re-letting the rentals shall be applied, first, to the payment of any indebtedness other than rent due hereunder from Tenant to Landlord; second, to the payment of any costs and expenses of such re-letting,including brokerage fees and attorney's fees and costs of such alterations and repairs;third,to the payment of rent due and unpaid hereunder, and the residue,if any, shall be held by Landlord and applied in payment of future rent as the same may become due and payable hereunder. If such rentals received from such re-letting during any month be less than that to be paid during the month by Tenant hereunder,Tenant shall pay any such deficiency to Landlord. Such deficiency shall be calculated and paid monthly. No such re-entry or taking possession of said premises by Landlord shall be construed as an election on its part to terminate this Lease unless the termination thereof be decreed by a court of competent jurisdiction. (b) Notwithstanding any such re-letting without termination,Landlord may at any time thereafter elect to terminate this Lease for such previous breach,in addition to any other remedies it may have, and it may recover from Tenant all damages it may incur by reason of such breach, including the cost of recovering the Leased Premises, reasonable attorney's fees, and including the worth at the time of such termination of the excess, if any, of the amount of rent and charges equivalent to rent reserved in this Lease for the remainder of the stated term over the then reasonable rental value of the Leased Premises for the remainder of the stated term,all of which amounts shall be immediately due and payable from Tenant to Landlord. Page 7 of 9 Section 9.03 Additional Remedies In case suit shall be brought for recovery of possession of the Leased Premises, for the recovery of rent or any other amount due under the provisions of this Lease, or because of the breach of any other covenant herein contained on the part of Tenant to be kept or performed, and a breach shall be established, Tenant shall pay to Landlord all expenses incurred therefor, including a reasonable attorney's fee. Any and all actions as may be brought under this Lease shall be brought in Jefferson County, Texas. ARTICLE X Section 10.01 Waiver One or more waivers of any covenant, term or condition of this Lease by either party shall not be construed as a waiver of a subsequent breach of the same covenant,term or condition. The consent or approval by either party to,or any act by the other party requiring such consent or approval, shall not be deemed to waive or render unnecessary consent to,or approval of,any subsequent similar act. Waiver by Landlord of any covenant, term or condition of leases with other tenants of the Leased Premises, or failure of Landlord to require of any other tenant of the Leased Premises to undertake or perform obligations hereunder or other similar obligations,shall not be deemed a waiver or failure as to any other person or party. Section 10.02 Accord and Satisfaction No payment by Tenant or receipt by Landlord or a lesser amount than the rent herein stipulated shall be deemed to be other than on account of the earliest stipulated rent, nor shall any endorsement or statement on any check or any letter accompanying any check or payment as rent be deemed an accord and satisfaction, and Landlord may accept such check or payment without prejudice to Landlord's right to recover the balance of such rent or pursue any other remedy provided in this Lease. Section 10.03 Notice Any written notice under this Lease shall be by certified or registered prepaid mail or delivered in person and, (a) if intended for the Landlord,addressed or delivered to Landlord at 2615 Calder,Suite 1050, Beaumont, Texas 77702, or at some other address in the U.S.A. as Landlord may designate by written notice; and (b) if intended for the Tenant, addressed or delivered to Tenant at the City of Beaumont, P. O. Box 3827,Beaumont,Texas 77704,or at some other address in the U.S.A. as Tenant may designate by written notice. Section 10.04 Landlord's Successors-in-Interest This provision of this Lease shall inure to the benefit of the Landlord and its assigns and shall be binding upon the Tenant and its assigns; and the provisions of this agreement shall be binding upon the Landlord only with respect to breaches occurring during the period of ownership of the Leased Page 8 of 9 Premises by the Landlord and upon the successors-in-interest of the Landlord only during the period of ownership by such successors-in-interest of the Landlord. ARTICLE XI Section 11.01 Miscellaneous Provisions This Lease shall be of no force and effect until duly executed by authorized representatives of both parties and delivered in fully executed form to each party. Tenant shall store and promptly and property dispose of any waste oil, antifreeze or gasolines in an environmentally safe manner and shall not cause any pollution or nuisance about the premises. ARTICLE XII Notwithstanding anything contained in this Lease to the contrary, in the event no funds or insufficient funds are appropriated and budgeted or are otherwise unavailable by any means whatsoever in any fiscal period for lease payments due under this Lease, Tenant will immediately notify Landlord in writing of such occurrence and this Lease shall terminate on the last day of the fiscal period for which appropriations have been received or made without penalty or expense to Tenant. EXECUTED in multiple counterparts, each of which shall be deemed an original. LANDLORD: TENANT: Bar C Ranch Company City of Beaumont / Southeast Texas Auto Theft Task Force By: By: W. E. Wilson, Jr., President Kyle Hayes, City Manager Page 9 of 9