HomeMy WebLinkAbout020886 ORD - 03/06/1990AN ORDINANCE
AUTHORIZING THE EXECUTION OF A CONTRACT TO
LEASE AND A LONG-TERM LEASE FOR TWENTY (20)
YEARS FOR BLOCK 89, FRACTIONAL LOTS 7, 8, 9,
AND FULL LOTS 10, 11, AND 12, BEACH ADDITION,
CITY OF CORPUS CHRISTI, NUECES COUNTY, TEXAS
TO THE MUSEUM OF ORIENTAL CULTURES.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS
CHRISTI, TEXAS:
SECTION 1. That the City Manager is hereby authorized to
execute a Contract for Lease and Lease Agreement for twenty (20)
years for Block 89 fractional Lots 7, 8, 9, and full Lots 10, 11,
and 12, Beach Addition, City of Corpus Christi, Nueces County,
Texas to the Museum of Oriental Cultures, all as more fully set
forth in the Contract for Lease and Lease Agreement attached
hereto and made a part hereof, marked Exhibit 1 and Exhibit 2.
MICROFILMED
CONTRACT FOR LEASE
THE STATE OF TEXAS
COUNTY OF NUECES
WHEREAS, the CITY OF CORPUS CHRISTI, TEXAS (the "City")
is the owner of real property located in Corpus Christi, Nueces
County, Texas, and more particularly described as Block 89,
fractional lots 7, 8, 9, and full lots 10, 11, and 12, Beach
Addition, together with all improvements thereon, (the
"Property") ; and
WHEREAS, the City Council has previously agreed to
provide a site in the Bayfront Arts and Sciences Park for the
Museum of Oriental Cultures; and,
WHEREAS, the Museum of Oriental Cultures (hereafter
"MOC") should be on excellent addition to the Bayfront Arts and
Sciences Park as an additional attraction and to compliment the
existing activities within the area; and,
WHEREAS, the MOC has agreed to begin fund raising
activities to raise funds which will be needed for the
rehabilitation of the existing improvements and construction of
new improvements; and,
WHEREAS, the City and the MOC desire to enter into this
agreement to evidence the agreement of the City and the MOC to
enter into a Lease Agreement, (attached as Exhibit A);
Exhibit 1
In consideration of the foregoing and the mutual
promises herein
contained and other good and valuable
consideration the receipt and sufficiency of which is hereby
acknowledged, the City and the MOC agree as follows:
1. The MOC agrees to begin planning for construction of the
improvements and necessary fund raising to finance the
construction of the improvements.
2. If requested by the MOC at any time prior to February 1,
1992, the City agrees to execute and deliver to the MOC a lease
agreement in the form of the attached Lease Agreement. Upon
receipt of the Lease
Agreement executed by the City, the MOC
agrees to execute and return to the City a fully executed copy of
the Lease Agreement.
WITNESS THE HANDS of the duly authorized officers of the
parties hereto, this
ATTEST:
By:
day of
City Secretary
APPROVED:
day of
By:
Assistant C
ATTEST:
ctxuut , 1°A0
�.••.
y Attorne
By: r J
Sucre
, 1990.
CITY OF CORPUS CHRISTI
By:
City Manager
MUSEUM OF ORIENTAL CULTURES
By: c(1.4 J+' V gKM_
President
STATE OF TEXAS
COUNTY OF NUECES
This instrument was acknowledged before me on the day
of , 19 , by , City Manager
of Corpus Christi, Texas on behalf of said City.
Notary Public, State of Texas
Typed or Printed Name of Notary
My Commission Expires:
STATE OF TEXAS
COUNTY OF NUECES
,S/, --u/
instrument was acknowle ged be ore me, on the 20".L day
of �G{-uc , 1990, by //7(oi ) , President,
Museum of O 'rental Cultures, a Texas non-profit corporation, on
behalf of said non-profit corportion.
3
Notary
Public, Sta
e o exas
, &I cr Tose C-io n2_a /c 7
Typed or Printed Name of Notary
My Commission Expires: /-12 - q3
EXHIBIT A
LEASE AGREEMENT
THE STATE OF TEXAS §
COUNTY OF NUECES §
WHEREAS, the CITY OF CORPUS CHRISTI, TEXAS ("City") is
the owner of real property located at Beach Addition, Block 89,
fractional Lots 7, 8, and 9, and full lots 10, 11, and 12,
together with all improvements thereon ("Property"); and
WHEREAS, the Museum of Oriental Cultures, a Texas nonprofit
corporation (the "Lessee") desires to lease the property,
rehabilitate the existing improvements, construct new
improvements, and has pledged to undertake fund raising to raise
the necessary funds to accomplish the rehabilitation and new
improvements;
In consideration of the foregoing and the mutual
promises herein contained, the City and Lessee agree as follows:
I.
The City does hereby lease, let, and demise to Lessee
the Property, together with all improvements located thereon.
II.
Lessee shall undertake rehabilitation of the existing
building (formerly known as the ILA building) for use as the
Museum of Oriental Cultures and to construct additional
improvements on the property possibly including an oriental tea
garden.
Lessee agrees to use its best efforts to begin
rehabilitation of the Improvements and construction of new
Exhibit 2
improvements within 24 months of February 1, 1990, and complete
such improvements within an additional 12 months. In the event
that Lessee does not begin construction within 24 months of
February 1, 1990, i.e. by January 31, 1992, and/or does not
finish within an additional 12 months, i.e. by January 31, 1993,
the City's sole remedy shall be to terminate this Lease
Agreement. The plans and specifications for the rehabilitation
or new construction of Improvements, site improvements, parking,
and landscaping and any changes thereto must be approved by the
City prior to the start of construction thereof, and shall be
consistent aesthetically and in quality of construction with
other properties in the Bayfront Arts and Sciences Park and be in
conformance with all City codes. Lessee shall consult with and
obtain approval of all landscaping from the Director of Parks and
Recreation. Competitive bidding shall be conducted as if the
Improvements were to be constructed by City, however final
approval of a bid will be made by the Board of the Lessee. Local
vendors and contractors shall be utilized to the greatest extent
possible. The successful bidder to whom
must execute a good and sufficient bond.
full amount of the contract price,
the contract is awarded
The bond must be in the
conditioned that the
contractor will faithfully perform the contract, and executed in
accordance with Article 5160, Revised Statutes, by a surety
company authorized to do business in the State of Texas.
Construction shall be completed and operation of facilities
commenced within 12 months from commencement of construction.
The insurance provisions of paragraph XIV of this contract must
2
be met on the date the successful bidder furnishes a good and
sufficient bond required above.
The Lessee shall have sole and full responsibility for
preparing the plans, advertising for bids, supervising
construction and accepting the Improvements when completed.
The cost of construction, rehabilitation, landscaping,
irrigation and other site improvements shall be borne entirely by
the Lessee. It is understood that the City does not assume and
will not in any way be responsible for any of the financial
obligations incurred or created by the Lessee in connection with
the construction of the Improvements. Lessee agrees to save and
hold the City harmless from any and all charges, claims or
liability of any nature whatsoever as provided below.
Any building, fixture, or appurtenance placed on the
Property shall, except as provided elsewhere herein, become the
property of City, upon expiration or termination of this Lease
Agreement.
III.
The term of this lease shall begin sixty (60) days
after execution of this Lease Agreement and continue for twenty
(20) years, subject to the provisions concerning termination as
stated herein. Upon completion of construction of the
Improvements (as determined by the reasonable judgment of
Lessee), Lessee shall send a written notice to the City informing
the City of completion; if the City does not object in writing
within sixty (60) days to Lessee's determination of completion,
the completion of construction shall be deemed to have occurred
as determined by Lessee. If the City objects, the date of
3
completion of construction shall be the date on which the Lessee
has cured the City's reasonable objections and a certificate of
occupancy has been issued by the City.
IV.
Lessee shall operate the Improvements and the Property
exclusively for the following purposes, and uses incidental
thereto: advancement of knowledge, appreciation and enjoyment of
oriental cultures including but not limited to programs,
exhibits, performances, promotions, classes, training, and
education in oriental cultures. Such activities shall be
conducted on a regular, continuous basis, and facilities
constructed on the Property shall be operated during regular,
reasonable business hours with the understanding that the City
wishes to have as much activity in the area as possible
throughout the week including weekends.
V.
It is understood that Lessee will be responsible for
furnishing and equipping the building and that City has no
obligation to furnish any equipment or furnishings for the
Lessee. All personal property furnished by Lessee or donated by
others in behalf of Lessee will remain the property of Lessee
unless specifically donated to City.
VI.
The City will maintain the lawn and vegetation at its
own expense, subject to annual budget allocation, with the
exception of any garden or extensive landscaping which will be
maintained at the sole expense of the Lessee. Lessee will
maintain, at its sole expense, the exterior and interior of the
4
building and any other improvements on the Property, all fixtures
connected therewith, all personal property thereon, exterior
walks and driveways, and all other areas which the City has not
agreed to maintain under this Lease Agreement. Maintenance shall
be of such quality as to maintain the Property in a first-class
condition, consistent and in harmony with maintenance of
improvements on properties leased by the City to other tenants in
the Bayfront Arts and Science Park. Lessee shall not undertake
exterior construction, remodeling or redecorating beyond normal
maintenance without prior written consent of the City. No major
interior construction shall be undertaken without prior written
consent of the City. Lessee shall obtain, at its own expense,
all building permits, all utility services, garbage collection,
janitorial services, and similar services.
VII.
Lessee's activities will have priority on use of the
building; however, Lessee shall permit use of the building and
facility by the City and civic and community groups on a
reasonable time basis, if such use will not interfere with
previously scheduled activities of Lessee. Lessee shall have the
right to charge rental fees for the use of the facility and in
addition thereto, to charge actual out-of-pocket costs incurred
by Lessee through the use by others. Such rental fee and such
additional operating costs shall be calculated as shown on
Exhibit "I" attached hereto, and made a part of hereof for all
purposes. Exhibit "I" will be reviewed by the City and Lessee
annually to make any reasonable changes agreed to by the City and
5
Lessee. The City Manager, or his designee, is hereby authorized
to make said agreed upon changes to Exhibit I.
Lessee may refuse the use of the facility to any
person, firm or corporation, for any event which is deemed to be
unsuitable by virtue of the limitations of the design and
outfitting of the facility or by virtue of failure to meet the
moral standards of the community, but Lessee shall promptly
report any such refusals made on this basis to the City.
Lessee agrees to keep and maintain, in a manner
acceptable to the City's Director of Finance, adequate books and
records showing all receipts and disbursements, which shall be
available for examination by the Director of Finance or his
designated representative at any time within usual business
hours, and to provide the City with an annual report including,
but not limited to, a balance sheet and either an income
statement or receipts and disbursements for the preceding year
prepared by a certified public accountant.
VIII.
Lessee shall have the right to provide concession
activities, including food and beverages. The City shall have
the right to approve all prices charged, which approval is
delegated to the City Manager or his designee. Lessee must
notify City of proposed price changes sixty (60) days prior to
the proposed change. The price change shall be immediately
effective upon approval of the City Manager or his designee.
Lessee shall prominently display a list of prices to be charged
at each location where concession items are sold, and such prices
shall not exceed prices charged for similar services under
6
similar conditions elsewhere in the City. Lessee shall offer
concession services to other users of the facility on the same
basis and at the same prices as for Lessee.
IX.
Lessee shall fully indemnify, save and hold harmless
the City, its officers, employees, and agents against any and all
liability, damage, loss, claims, demands and actions of any
nature whatsoever on account of personal injuries (including,
without limitation on the foregoing, premises defects, workers'
compensation and death claims), or property loss or damage of any
kind whatsoever, which arise out of or are in any manner
connected with, or are claimed to arise out of or be in any way
connected with, the performance by Lessee of its obligations
under this Lease Agreement or Lessee's use, operation or
occupancy of the Property. Lessee shall at its own expense
investigate all such claims and demands, attend to their
settlement or other disposition, defend all actions based thereon
and pay all charges of attorneys and all other costs and expenses
of any kind arising from any such liability, damage, loss,
claims, demands, and actions.
x.
Lessee agrees that in construction upon and operation
of the Property it will promptly comply with and fulfill all
ordinances, regulations and codes of Federal, State, County, City
and other governmental agencies applicable to the Property, and
all ordinances or regulations imposed by the City for the
correction, prevention and abatement of nuisances or code
violations in or connected with the Property during the term of
this Lease Agreement, at Lessee's sole expense and cost.
XI.
Lessee shall not place, paint or otherwise affix any
signs at, or on or about the Property, or any part thereof,
without prior written consent of City. The City shall have the
right at any time to require Lessee to remove, paint or repair
the signs allowed. Should Lessee not remove, paint or repair the
said signs within thirty (30) days of demand therefor in writing,
the City may fulfill its demands and charge the expense of same
to Lessee. This paragraph does not apply to temporary signs, in
conformity with city codes, on the Property for two weeks or
less.
XII.
No assent, express or implied, by the City to any
breach of any of Lessee's covenants, agreements, conditions or
terms hereof shall be deemed or taken to be a waiver of any
succeeding breach of any covenant, agreement, condition or term
hereof.
XIII.
The City reserves the right to enter the Property at
any reasonable time during the existence of this Lease Agreement
for the purpose of inspecting the same in order to determine
whether the terms of this Lease Agreement are being observed and
carried out, including but not limited to, both exterior and
interior maintenance.
8
XIV.
Lessee shall acquire and maintain the following
insurance coverages during the term of this Lease Agreement:
(a) liability insurance covering all activities to be
conducted on the Property, with the city as an
additional insured, noncancellable except upon
thirty (30) days written notice to the City, in
such amount and with such terms and coverages as
required by the City Manager, or his designee, and
such insurance amounts shall be reviewed annually;
(b) workers' compensation insurance on all its
employees as required by state and federal law;
(c) property insurance in the amount of the full
replacement value of all buildings and
improvements, insuring against all risks as
required by the City Manager, or his designee,
which shall be noncancellable except upon thirty
(30) days written notice to City, shall name City
as an additional insured, and shall contain such
terms as required by the City Manager, or his
designee, and such insurance amounts shall be
reviewed annually.
In addition, Lessee shall require any contractor for construction
or rehabilitation of any buildings or improvements under this
Lease Agreement to carry insurance coverages throughout the
construction period with terms and amounts as required by the
City Manager. The amount and terms of coverages required in this
paragraph shall be substantially similar to those required by the
City for similar operations, and shall be re-evaluated on an
annual basis.
Lessee shall provide City with certificates of
insurance reflecting all the above coverages, and shall, upon
request by City, promptly provide City with copies of all such
insurance policies.
XV.
Lessee shall not assign this Lease Agreement nor sublet
the Property or any part thereof without the prior written
consent of the City. The consent of the City shall not be
unreasonably withheld.
XVI.
Upon thirty days prior written notice to Lessee, the
City may, at its option, in addition to any other remedy or right
hereunder or by law, terminate this Lease Agreement upon
occurrence of any of the following conditions ("Defaults"),
provided that Lessee has not cured the Default prior to
termination:
(1) Failure to operate the Property for the purposes
set forth in Paragraph IV except during periods
necessary for repairs or renovation approved by the
City in writing or except as otherwise contemplated by
this Lease Agreement.
(2) Failure to abate any nuisance specified in writing
by the City within a reasonable time specified in
writing by the City.
1.0
(3) Lessee's assignment of this Lease Agreement or
subletting of the Leased Premises, or attempted
assignment or subletting, without prior written consent
of City.
(4) Dissolution of Lessee as a nonprofit corporation.
(5) Failure to have in effect policies of contractor's
insurance, liability insurance, workers' compensation
insurance and property insurance as required by the
City's Director of Risk Management (or successor
official).
(6) Intentional, knowing or fraudulent failure to
maintain strict and accurate books of account, or to
furnish said books of account to the City for
inspection.
(7) Abandonment of the Property.
(8) Failure of Lessee to correct any other breach in
the performance or observance of any other covenant or
condition of this Lease Agreement.
Upon termination of this Lease Agreement as hereinabove provided,
or pursuant to statute, or by summary proceedings or otherwise,
the City may enter forthwith and resume possession either by
summary proceedings, or by action at law or in equity or by force
or otherwise, as the City may determine, without being liable in
trespass or for any damages. The foregoing rights and remedies
given to the City are, and shall be deemed to be, cumulative of
any other rights of the City under law, and the exercise of one
shall not be deemed to be an election, and the failure of the
City at any time to exercise any right or remedy shall not be
11
deemed to operate as a waiver of its right to exercise such right
or remedy at any other or future time.
XVII.
Upon expiration of this Lease Agreement, or upon
termination thereof for any reason, all buildings, improvements
and fixtures placed on the Property by Lessee shall become
property of the City. Provided, however, that should this Lease
Agreement be terminated prior to acceptance by the City of
completion of construction under paragraph II, said buildings,
improvements and fixtures shall become property of the City only
at its option. If the City should, in such event, decide to
decline all or part of said Improvements, it shall notify Lessee
in writing within sixty (60) days of its receipt of such notice.
If Lessee shall fail to remove such Improvements within that time
period, the City may remove and dispose of such Improvements, and
Lessee shall be liable to the City for all expenses incurred
thereby.
XVIII.
it is specifically agreed and understood that the
parties intend and do hereby create a landlord/tenant
relationship, and this Lease Agreement shall be construed
conclusively in favor of that relationship. Nothing herein
contained shall be deemed or construed by the parties hereto, nor
by any third party, as creating the relationship of principal and
agent or of partnership or of joint venture between the parties
hereto, it being understood and agreed that no provision
contained herein, nor any of the acts of the parties hereto,
12
shall be deemed to create any relationship between the parties
herein other than that of Landlord and Tenant.
XIX.
No changes or modifications to this Lease Agreement
shall be made, nor any provision waived, unless in writing signed
by a person authorized to sign agreements on behalf of each
party. This Lease Agreement supersedes all previous agreements
between the parties.
XX.
Lessee agrees to pay the costs of newspaper publication
of this Agreement and related ordinance as required by the City
Charter.
XXI.
Lessee shall have the right to terminate this Lease
Agreement by giving the City thirty (30) days prior written
notice of the date of termination. Provided, however, (i) if the
construction of the Improvements has been commenced and (ii) if
the construction of the Improvements has not been completed or
the Improvements have been damaged or destroyed, Lessee shall
only have the right to terminate this Lease Agreement as provided
above if Lessee restores the property to its pre -lease condition
or, in the alternative, completes the construction of the
Improvements in accordance with the approved plans and
specifications at the option of the City.
13
WITNESS THE HANDS of the duly authorized officers of the parties
hereto, this
day of , 19
ATTEST: CITY OF CORPUS CHRISTI
By: By:
City Secretary City Manager
APPROVED:
�1 ��day of in() :
By: \
Assistant _ity Attorn
ATTEST: MUSEUM OF ORIENTAL CULTURES
By:By:
Se y� President
THE STATE OF TEXAS §
COUNTY OF NUECES §
This instrument was acknowledged before me on the
day of , 19 , by , City
Manager of Corpus Christi, Texas on behalf of said City.
Notary Public, State of Texas
Type or Print Name of Notary
My Commission Expires:
11
THE STATE OF TEXAS §
COUNTY OF NUECES §
This instrument was acknowledged before me on the
day of 19 by
President, Museum of Oriental Cultures, a Texas non-profit
corporation, on behalf of said non-profit corporation.
Notary Public, State of Texas
Type or Print Name of Notary
My Commission Expires:
hat the foregoing ordinance was read for the first
is second reading on this the -':< day of
19%( , by the following vote:
Betty N. Turner (a( t Edward
Leo Guerrero
Tom Hunt C{ ! u
A.
time and passe
pi i2i(( c14,,
Martin ((I-!
Joe McComb
Clif Moss
Mary Rhodes
( t( )1 •
Ji(X ,
Frank Schwing, Jr. AC)( ;
That the foregoing ordinance was rea4 for the seconc} time and passed
to its third reading on this the ( day of 8(0 HOT
19(Y( , by the following vote:
Betty N. Turner
Leo Guerrero
Tom Hunt
Edward A. Martin
Joe McComb
Clif Moss
Mary Rhodes
Frank Schwing, Jr.
That the foregoing ordinance was read for the third time and passed
finally on this the (- day of ! .( ` << /1 , 19 / , by the
following vote:
Betty N. Turner
Leo Guerrero
Tom Hunt
//
PASSED AND APPROVED, this
ATTEST:
City Secreta
the
Edward A. Martin
Joe McComb
Clif Moss
Mary Rhodes
Frank Schwing, Jr.
day of
APPROVED:
4 DAY OF fl
u.ua , 19? :
HAL GEORGE, CITY
BY, 74,t -Gin
Assistant City
044
ATTORNEY
'11il
Attorne
, 19
MAYOR
THE CITY OF CORPUS CHRISTI
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