HomeMy WebLinkAboutRES 12-053 RESOLUTION NO. 12-053
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 three(3)year Lease
Agreement, substantially in the form attached hereto as Exhibit "A," in the amount of
$1,292.72 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, 2012, and end on March 31, 2015.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 20th day of
March, 2012.
C "
14 o 7 .4 A
VMayor Becky Ames -
4011
TEXAS ASSOGTATION OF REALTORS®
COMMERCIAL LEASE
USE OF TMS FORM BY PERSONS WHO ARE NOT MEMBERS OF THE TEXAS ASSOCIATION OF REALTORS®IS NOT AUTHORIZED,
Wrasas Aesodatlon of RBALTORM lee.2010
Table of Contents
k. Paragimph Description Rg„ No. ftmi raph Descrlution pq,
1. Parties 2 22. Holdover 10
2, Leased Premises 2 23. Landlord's Lien&Security Interest 11
3. Term 2 24. Assignment and Subletting 11
A. Term 25. Relocation 11
B. Delay of Occupancy 26. Subordination 11
4. Rent and Expenses 3 27. Estoppel Certificates &Financial Info. 11
A. Base Monthly Rent 28. Casualty Loss 12
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 13
F. Method of Payment 33. Addenda 13
G. Late Charges 34. Notices 13
H. Returned Checks 35. Special Provisions 14
5. Security Deposit 4 36. Agreement of the Parties 14
6. Taxes 4
7. Utilities 4 ADDENDA&EXHBITS(check an that g2iy)
8. Insurance 5
9. Use and Hours 6 ❑ Exhibit
10. Legal Compliance 6 O Exhibit
11. Signs 7 ❑ Commercial Lease Addendum for Brokers Fee
12. Access By Landlord 7 (TAR-2102)
13. Move-in Condition 7 ❑ Commercial Lease Addendum for Expense
14. Move-Out Condition 7 Reimbursement(TAR-2103)
15. Maintenance and Repairs 8 ❑ Commercial Lease Addendum for Extension
A. Cleaning Option (TAR-2104)
B. Conditions Caused by a Party ❑ Commercial Lease Addendum for Percentage
C. Repair& Maintenance Responsibility Rent (TAR-2106)
D. Repair Persons ❑ Commercial Lease Addendum for Parking
E. HVAC Service Contract (TAR-2107)
F. Common Areas ❑ Commercial Landlord's Rules and Regulations
G. Notice of Repairs (TAR-2108)
H. Failure to Repair ❑ Commercial Lease Guaranty(TAR-2109)
16. Alterations 9 ❑ Commercial Lease Addendum for Right of First
17, Liens 9 Refusal (TAR-2105)
18. Liability 10 ❑ Commercial Lease Addendum for Optional
19. Indemnity 10 Space(TAR-2110)
20. Default 10 ❑ Commercial Lease Addendum for Construction
21. Abandonment, Interruption of Utilities, (TAR-2111) or (TAR-2112)
Removal of Property & Lockout 10 ❑ Commercial Lease Addendum for
Contingencies (TAR-2119)
O
❑ Information About Brokerage Services
(TAR-2101)1-26-10 Initialed for Identification by Landlord: and Tenant: Page 1 of 15
American Real Estate 3550 Dowlen Rd,Suite A Beaumont,TX 77706
Phone:409.866.9129 Fax: Keiji Maness D.DERr1AROUT1
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EXHIBIT "A"
4
TEXAS ASSOCIATION OF REALTORS8
COMMERCIAL LEASE
USE OF TINS FORM BY PERSONS WHO ARE NOT MEMBERS OF THE TEXAS ASSOCNTION OF REALTORS*IS NOT AUT40tIZED.
OTsxas Association of R1 MTORM,Inc,nit
1. PARTIES: The parties to this lease are:
Landlord: 3 AVID 2ERHARO—MIAN
and
Tenant: CITY OF BZ& MM
att• BBFAM DKAN
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):
❑ (1) Multiple-Tenant Proper: 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 f+alibvv§:
W (2) Single-Tenant Prop.: The real property at: '8155 PIMLM
(address)in
BEAUMMT (city), JEFMFZ H (county), Texas, which
is legally described on attached Exhibit C• WILLIAKS or as follows: A86TRACT
59 TR 72—A SP-6 BLOCK 1
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.
The rentable area ❑ will ❑will not be adjusted if re-measured.
3. TERM:
A. Me= The term of this lease is 36 months and -o- days, commencing on:
APRIL 1, 2012 (Commencement Date)
and ending on MRCH 31. 2015 (Expiration Date).
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.Commercial Lease concerning: BEAUMONT Tex 77706
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 fohows:
Dates Rate per rentable sc uare foot c #tonal Base Monthly
From To M nthly Rate Annual Rate Rent
B. Additional Bent: In addition to the base monthly rent, Tenant will pay Landlord all other amounts, as
provided by the attached (Check all that apply.):
❑ (1) Commercial Lease Addendum for Expense Reimbursement(TAR-2103)
❑ (2) Commercial Lease Addendum for Percentage Rent(TAR-2106)
❑ (3) Commercial Lease Addendum for Parking(TAR-2107)
❑ (4)
All amounts payable under the applicable addenda are deemed to be "rent" for the purposes of this
lease,
C. First Full Month's.-gam:The first full monthly rent is due on or before APRIL 1 . 2012
D. 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 muhiplied 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.
E. Place of Paymen : 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: DAVID DERHAROUTIAN c/o Stacy ZZMater
Address: laaa=ont.AtAa Federal Credit Union
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Commercial Lease concerning: BEAUXO-NT. Tex 77706
F. Method-of Paymen : 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 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. w
G. I ate -haroe o
w6thin 6 d late it is due, Tenon!will pay 6andleFd a late 9MFge equal te 6% @4 the amount
due. in 11 the meilbew is met the ageni fell Feeeipt 0611 lzefflHepd. ihe late eheMe is a eesi 0:03.
associated wM the sallestien of r-eAt and 6aR IGFd'ri. aseeptanee of a late ehaffle d806 A911 Waiye
et.se . of the Texas Goverment Code. shall lac controlled by 552.041
H. Refirned Tenant will pay$25.00 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.)
NIA Landlord Tenant
(1) Water ❑ ❑ 0
(2) Sewer ❑ ❑
(3) Electric ❑ ❑ Q
(4) Gas ❑ ❑ Q
(5) Telephone ❑ ❑
(6) Internet ❑ ❑ (�
(7) Cable ❑ ❑
(8) Trash ❑ ❑ 0
(9) ❑ ❑ ❑
(10)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-dyes: "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 specked 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 Landlords procedures to make a request
to provide the additional HVAC services under this paragraph.
a (3) Tenant will pay for the HVAC services under this lease. city Intuats:
8. INSURANCE: „ n Landlord Inillais:
City is self insured. She Attachment A .
r TenapA must, at TenaiciVe expense,
om an insurer authorized to operate in Texas:
(1 blic liability insurance naming Landlord as an additional insured with policy limits on an o nce
bas ' a minimum amount of (check only(a) or(b) below)
d (a) $1, 000; or
❑ (b) $2,000,
If neither box is c ed the minimum amount will be$1,000,000.
(2) personal property da a insurance for the business operations be conducted in the leased
premises and contents in leased premises in an amount suffici to replace such contents after
a casualty loss; and
El (3) business interruption insurance su nt to pay 12 months rent payments;
B. Before the Commencement Date, Tenant m rovi andlord with a copy of insurance certificates
evidencing the required coverage. If the insuran verage is renewed or changes in any manner or
degree at any time this lease is in effect, T ant m not later than 10 days after the renewal or
change, provide Landlord a copy of an in nce certificate ' ncing the renewal or change.
C. If Tenant fails to maintain the r insurance in full force and a at all times this lease is in effect.
Landlord may:
(1) purchase insurance will provide Landlord the same coverage as required insurance and
Tenant must im ately reimburse Landlord for such expense;or
(2) exercise Lan rd's remedies under Paragraph 20.
D. Unless arties agree otherwise, Landlord will maintain in full force and effect insurance : (1)fire
and ended coverage in an amount to cover the reasonable replacement cost of the improve of
roperty; and (2) any public liability insurance in an amount that Landlord determines reasona
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 notes 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.
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8155 PHELAN
Commercial Lease concerning: SEAUMONT Tex 77706
9. USE AND HOURS:
A. Tenant may use the leased premises for the following purpose and no other:
PIWA_Garlicy TRarli ns1 QArerign ror t:he CITY or AX&UKf'.YI1T inQluai.nc afvorags ofs
�..rarFryaiJ - .i.ir �+.,�i, ,n,.
p.raency units and living vi rg 0 uarteras fox Am,,lm es
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 HOURS A DAY-SEVEN (7) DAYS A WEEK
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 tenants 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' association 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 Tenants intended use. TROW2 must sillififify itself that
the iaased premises may he usad as Tenant intends by lodapgIndently inyestigating.aN matteri related to
The -of..icelead_pratnisea or Prsperty-Sanant fligragnAtImit.ialtQfrelying on-= warran1y-QC
representation Madej2y Landlord, Landlord's agent.-x_= broker con_ cerning Atift-use-f-the leased
premises or Property.
11.SIGNS:
A. Tenant may not post or paint any signs or place any decoration outside the leased premises or on the
Property without Landlord's written consent. Landlord may remove any unauthorized sign or decorations,
and Tenant will promptly reimburse Landlord for its cost to remove any unauthorized sign or decorations.
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,
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Commercial Lease concerning: S UMONT, Tax 77706
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.
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 Tenants business
operations when accessing the leased premises.
B. During the last 3_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 or in an addendum. Landlord and any aant have
made express� warranties-m,}�� condition� =_of Jh@lgg� premises_X
ELIll2eCty.
14.MOVE-OUT CONDITION AND FORFEITURE OF TENANT'S 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
free 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 Tenants 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. ❑ Landlord a 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.
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B. Repairs of( anditions GaUAQd by y 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 Maintwanoa Raspansibft: 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
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/1 that apply.}
NLA Land Tenant
(1) Foundation, exterior walls,roof, and other structural components....❑ p ❑
(2) Glass and windows ...........................................................................❑ ❑ d
(3) Fire protection equipment and fire sprinkler systems........................❑ ❑ O
(4) Exterior & overhead doors, including closure devices, molding,
locks, and hardware .........................................................................❑ ❑ 0
(5) Grounds maintenance, including landscaping and irrigation
systems ............................................................................................❑ ❑ W
(6) Interior doors, including closure devices, frames, molding, locks,
andhardware ...................................................................................❑ ❑ O
(7) Parking areas and walks ...................................................................❑ ❑ ❑
(8) Plumbing systems,drainage systems and sump pumps ..................❑ ❑ (a
(9) Electrical systems, mechanical systems ..........................................❑ ❑ C>�]
(10) Ballast and lamp replacement ..........................................................❑ ❑ d
(11) Heating, Ventilation and Air Conditioning (HVAC)systems ..............❑ ❑ d
(12) Signs and lighting:
(a) Pylon ...........................................................................................❑ ❑ d
(b) Facia ....................................................................... ................❑ ❑ Cl
(c) Monument ...................................................................................❑ ❑ D
(d) Door/Suite ...................................................................................I❑ ❑ d
(e) Other: .............❑ ❑
(13) Extermination and pest control, excluding wood-destroying insects ❑ ❑ 0
(14) Fences and Gates ............................................................................❑ ❑ ❑
(15) Storage yards and storage buildings... .............................................❑ ❑ 0
(16) Wood-destroying insect treatment and repairs .................................❑ Q ❑
(17) Cranes and related systems ................. ❑ ❑ ❑
(18) ❑ ❑
(20) All other items and systems. ...................................................... ❑ ❑
D. Repair Persons: Repairs must be completed by trained, qualified, and insured repair persons.
E. HVAC ServiGe Contact: If Tenant maintains the HVAC system under Paragraph 15C(11), Tenant d is
❑ 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 Tenant will reimburse Landlord for the expense of such maintenance and
service contract or Landlord may exercise Landlord's remedies under Paragraph 20.
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F. Co1,ntntzp 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 regulations. 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.
G. Nootica ofd irs: 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
Rem, 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 (including making any penetrations to the roof, exterior walls or foundation),
improve,or add to the Property or the leased premises without 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 1 BA
and 17.
D. Any alterations, improvements, frxtures or additions to the Property or leased premises Installed by
either party during the term of this lease will became 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 ntparmi et ed by haw, La nWord is NOT resRngijhla to Tenant or Tenjint''s am lams.
A. an act omission, or rjealect of" Tg;nan ; Tenant's agent; t'enant's a►p t;>'ehanft employees; Tenant's
patron 3- Tenant's invite;�r�Inl,Yn4her tenant on the Property;
B. firs.-III. wate tjeakgi, snow._hrzL winds, explosion- moke_rJaL strike. lode,_ rru,ntion� ,tiliti "c
theft buralacy. rotetx,_assault. .vandalism. other„peL&ons" environmental contaminants:_M other
acC[Arren .es or casUallY losses,
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19. INDEMNITY: ESCh.paLt�C �l be, res n i le for an ro rt: damage
tonal-inlu[y._sins. actions. liabilities. damages. ma -of,fQ .01 sarvicat to the leased rp emises_Qr
Pro
ms-ot-= other loss caused" negligently.x,oherwi se.Jay Atot-party-mAbat p,aLVa employees-
patrons.
guests- or invitees. A
caused City Initials:
24. DEFAULT;
Landlord Initials:
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.
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 falls 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.
eel--remedies as provided by Texas law.
C. if Tenant is in default, Landlord may,
ccelerate all rents which are payable during the remainder of this lease or any renewal
-
attempt attempt to mitigate any damage or loss caused by Tenant's breach by using ercialiy I
reasonable m . If Tenant is in default, Tenant will be liable for: e o
(1) any lost rent;
(2) Landbrd's cost of re the leased premises, including brokera , advertising fees, and
other fees necessary to We eased premises;
{3) repairs to the leased premises for yond normal wear tear;
(4) all Landlord's costs associated with evi of Te such as attorney's fees, court costs, and
prejudgment interest;
(5) all Landlord's costs associated with co on of re uch as collection fees, late charges, and
returned check charges;
(6) cost of removing any of Ten equipment or fixtures left on the ed premises or Property;
(7) cost to remove any , debris, personal property, hazardous . is, or environmental
contaminants le Tenant or Tenant's employees, patrons, guests, or I s in the leased
premises operty;
(8) cost eplace any unreturned keys or access devices to the leased premises, parking s, or.
perty;
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
a tenant-at-will and must vacate the leased premises immediately upon receipt of demand from Landlord.
No holding over by Tenant, with or without the consent of Landlord, will extend this lease. Tenant will
indemnify Landlord and any prospective tenants for any and all damages caused by the holdover. Rent for
any holdover period will be 4504-of 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.
j � City Initials:
10 0% Landlord Initials:
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23. a C
that the Leased p secunty agreement for the purposes of the x
Unifonn Corn may file a financing statemen 's security interest
U
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.
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, utNity 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 Tenants 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 that4-andlord 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 Tenants rights under this lease are recognized by the lien-holder.
N
M
27,
A. Within 10 days a e a written request from Landlord, Ten a and deliver to C o
Landlord an estoppel certificate tha terms ns of this lease. U
B. Within 30 days after r ten request from Landlord, Tenan to Landlord Tenant's
cur r In ormation (balance sheet and income statement). Landlord may re racial
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Commercial Lease concerning: BgA MpNT_ rx 777Q6
28. CASUALTY LOSS:
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 notifies 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.
E. If this lease does not terminate because of a casualty loss, rent wilt 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:
„g
' A arty' s entitlement
3
39. REPRESENTATIONS: to attorney fees shall be controlled by Texas law.
A. Tenant's statements in this lease and any application for rental are material representations retied 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:
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Commercial Lease concerning: BEAL NT Tex 77706
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:
Q, jij,� PROPERTIES
Principal Broker License No. Cooperating Broker License No.
KELLI MANESS
Agent Agent
1 1 Q2 Longfellow Drive.Su ,t. 2
Address Maress
Beaumont. Texas 77706
409 673-6333 (41109)892-5454
one ax Phone Fax
kbM"eas @hotmail.com
E-Mail License No. ari License No.
Principal Broker: (Check only one box) Cooperating Broker represents Tenant.
D represents Landlord only.
❑'representsTenant only.
❑ is an intermediary between Landlord and Tenant.
B. Fes:
Q (1) Principal Broker's fee will be paid according to: (Check only one box).
] (a) a separate written commission agreement between Principal Broker and:
a Landlord ❑Tenant.
❑ (b) the attached Addendum for Broker's Fee.
❑ (2) Cooperating Broker's fee will be paid according to: (Check only one box).
p (a) a separate written commission agreement between Cooperating Broker and:
❑ Principal Broker Q Landlord 0 Tenant.
Q (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 Regulatlons 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:
Landlord at: David Dexharoutian
Address: 6114 Hiah Terrace, Sucrar jMd Texas 77479
Phone: Fax:
and a copy to: David DerhargUtian
Address: a-mail: david.derharoutianlit-online.dS
Phone: (281)343-5866 Fax:
❑ Landlord also consents to receive notices by e-mail at:
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Commercial Lease concerning: ,BEAUMONT Terms 77706
Tenant at the leased premises,
and a copy to: city of Beaumont c/o Brenda Dean
Address: P o Box 3627 Beaumont Texas 77704
Phone: (409)781-4731 Fax: J!109) 880-3747
Q Tenant 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 property.
If existing carpet removed it is to be replaced.
Tenant responsible for carport and electricity to carport.
Either party may terminate lease by providing thirty (30) day written notice.
36. AGREEMENT OF PARTIES:
A. Fn- fire Agr t:This lease contains the entire agreement between Landlord and Tenant and may not
be changed except by written agreement.
B. ,Rinding 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, Venue and jurisdiction for all disputes shall be
exclusivelyy in Jefferson County and none oth�P:
E. Severable .la M: 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. Waiver: 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 Enlovment: 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.
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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. Lima: 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. ff you do not understand the effect of this Lease,
consult your attorney BEFORE signing.
CITY OF BEAUMONT
Landlord: DAVID D$RHAROUTIAN Tenant: P.O.Box 3027,8aw=ont, Tx 77704
att: BPJWA DEAN
By: By:
By(signature): By(signature):
Printed Name: Printed Name: TrvT.F wiyrs
Title: Title: rTTY MANArMR
By: By:
By(signature): By(signature):
Printed Name: Printed Name:
Title: Title:
(TAR-2101)1-26-10 Page 15 of 15
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City of Beaumont
February 20, 2012
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
Legal Department. • (409)880-3715 • Fax(409)880-3121
��� P.O.Box 3827 • Beaumont,Texas 77704-3827 _T