HomeMy WebLinkAboutC2023-296 - 10/31/2023 - Approved COMMERCIAL BUILDING LEASE AGREEMENT
This lease agreement („Lease") is entered into by and between the City of Corpus
Christi,a Texas home-rule municipal corporation("City"),acting through its duly authorized
City Manager or designee, and the Institute de Culture flispanica de Corpus Christi, Inc, a
Texas Nonprofit Corporation("Lessee").
1. Premises. The City leases to Lessee the Lichtenstein House located at 1617 N.
Chaparral, Corpus Christi Texas, together with all improvements thereon ("Premise?),
located in Heritage Park and depicted as follows:
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2. Term. The term of the lease is 1 year, effective upon final City Council approval,
unless sooner terminated as set out herein.At the end of the 1-year period,the lease may be
renewed upon written agreement of the Parties.
3. Payment. Lessee agrees to pay S400.00 per month.Upon renewal,the monthly rental rate
will increase 51%e each year.All rental fees are due and payable on or before the 1n day of each
month for the term of this Lease. Payment must be made to the order of the City of Corpus Christi
and mailed to the Accounts Receivable Division, P.O. Box 9277, Corpus Christi,TX 78469 or
delivered to City Hall at 1201 Leopard Street, Corpus Christi, TX. 78401. Failure to submit.
payments by the 3`d day of each month will require the addition of a$50.00 late fee.
4. Purpose.
(A) The purpose of this Lease is to enable Lessee to utilize.Premises for office space for its
business operations.. Lessee may establish and maintain its administrative offices'
within the Premises and provide cultural programs for the membership and public.
Lessee shall not use the Premises for any other purpose without the Director of Parks
and Recreation's("Director")prior written approval.
(13) Lessee must be open to the public during Lessee's regular office hours for a minimum of
at least 4 hours per day,'5 days per week, Within 30 days of the final City Council approval,
and by each February 1st thereafter,Lessee must provide Director with written notification
of Lessee's scheduled hours of operation through January 31 and provide Director of any
planned special events at the Premises through January 31. By each February 1st.Lessee
agrees to provide Director with an annual written report detailing Lessee's activities during
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SCANNED
5. Utilities.Lessee must pay cost of gas,electricity or other utilities furnished to or used by
Lessee on the Premises. City shall bear the cost of water and sewage service by the City. Failure
to pay utilitybill(s)prior to the due date constitutes grounds for termination of this Lease.
6. Maintenance. Except as specified herein,Lessee will maintain,at its sole expense,the
Premises and any Improvements on the Premises, including without limitation all fixtures
connected therewith,and all personal property thereon. Lessee shall obtain,at its own expense.
building permits,utility services,garbage collection,janitorial services,pest control and similar
services. City will maintain the grounds and landscaping and exterior of the Premises. City will
also be responsible for structural repairs,such as roof;air conditioning and heat,major plumbing,
and.electrical. If no funds are budgeted,or if cost of maintenance exceeds funds budgeted,City is
relieved of its maintenance obligations, and Lessee must maintain the Premises grounds,.
landscaping, building exterior and structural repairs. Lessee must maintain the interior of the
building including minor plumbing and electrical repairs related to usage of the building and all
personal property at the Premises.
7. Parking. No dedicated parking is provided with this Lease.
8. Furniture,Fixtures,and Equipment. It is understood that Lessee will be responsible
for fumishing and equipping the Premises and that the City has no obligation to furnish any
equipment or furnishings for Lessee. All capital improvements to the Premises,such as installation
of plumbing fixtures,remains the property of the City.
9. City Use.
(A) City retains the right to use or cross the Premises with utility lines and easements:City may
exercise these rights without compensation to Lessee for damages to,the Premises from
installing,maintaining,repairing,or removing the utility lines and easements.
(B) Lessee must post a sign outside the`Premises stating the hours it is open for public tours.
Lessee will provide information to visitors concerning the history and restoration of the
property. The Premises is available to the City for regularly scheduled tours as
determined by the Director. The Director may schedule special events and festivals on the
Premises as well as in the surrounding areas. The Director will work with Lessee to not
conflict with any of Lessee's programs.
10. Alterations. Lessee shall not make any alterations or construction to the Premises
without the prior written approval of the Director. All alterations, improvements, and
additions made by the Lessee to the Premises shall become the property of the City in fee
simple without any other action or process of law.
11. Signs. Lessee shall not exhibit, inscribe, paint, erect, or affix any signs,
advertisements,notices,or other lettering("Signs")at,on,or about the Premises,or any part
thereof, without the Director's prior written approval City may require Lessee to remove,
repaint or repair any Signs allowed. If Lessee does not remove, repaint or repair the Signs
within 10 days of Director's written demand,City may do or cause the work to be done,and
Lessee will pay City's costs within 30 days of receipt of Director's invoice. If payment is not
timely made, the City may terminate this Lease upon 10 days written notice to Lessee.
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Alternatively,City may elect to tenninate this Lease after 1 0 days written notice to Lessee.
12. Inspection. Any officer or authorized employee of the City may enter upon the Premises,
at all reasonable times and with advance notice, to determine whether Lessee is providing
maintenance in accordance with and as required by above,or for any other purpose incidental to
City's retained rights of and in the Premises.
13. Insurance. Lessee shall comply with the insurance requirements in Exhibit A.
14. Acceptance of Premises Disclaimer.
Lessee acknowledges that it is leasing the premises "AS IS" with all faults as
may exist on the Premises, and that neither City,nor any employee or agent of
City has made any representations or warranties as to the condition of such
premises. Lessee hereby waives any and all causes of action,claims, demands
and/or damages based on any warranty,express or implied, including but not
limited to any implied warranty of suitability for a particular purpose,any and
all warranties of habitability, and any other implied warranties not expressly
set forth in this Lease. Lessee acknowledges and agrees that Lessee has been
provided,to its satisfaction,the opportunity to inspect the Premises for any
defects as to the suitability of such property for the purpose to which Lessee
intends to use the Premises and is relying on its own inspection. Lessee
acknowledges that any and all structures and improvements existing on the
Premises on the commencement date,if any,are accepted"AS IS"with any
and all latent and patent defects and that there are no warranties,express
or implied,by City with respect thereto. Lessee acknowledges that it is not
relying upon any representation,statement or other assertion by City with
respect to any existing structures or improvements but is relying on its own
examination thereof. The provisions of this section shall survive the expiration
or earlier termination of this Lease.
15. Indemnity
In consideration of allowing Lessee to use the Premises, Lessee covenants to
fully indemnify, defend, save and hold harmless the City, its officers, agents,
representatives and employees (collectively "Indemnitees") from and against
any and all liability, loss,damages,claims, demands,suits and causes of action
of any nature whatsoever asserted against or recovered from Indemnitees on
account of injury or damage to person including,without limitation, premises
defects,workers' compensation and death claims, or property loss or damage
of any other kind whatsoever,to the extent any injury,damage or loss may be
incident to,arise out of, be caused by or be in any way connected with, either
proximately or remotely,wholly or in part: (1)Lessee's performance pursuant
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to this Lease; (2) Lessee's use of the Premises and any and all activities
associated therewith pursuant to this Lease; (3) the violation by Lessee, its
officers, employees, agents or representatives of any law, rule, regulation,
ordinance or government order of any kind pertaining, directly or indirectly,
to this Lease;(4)the exercise of rights under this Lease;or(5)an act or omission
on the part of Lessee, its officers, employees, agents, or representatives
pertaining to this Lease, regardless of whether the injury, damage, loss,
violation,exercise of rights,act or omission is caused or is claimed to be caused
by the sole, contributing or concurrent negligence of Indemnitees, and
including all expenses of litigation,court costs,and attorneys' fees,which arise
or are claimed to arise out of or in connection with the asserted or recovered
incident.
Lessee covenants and agrees that if Indemnitees,or any of them,is made a party
to any litigation against Lessee or in any litigation commenced by any party
other than Lessee relating to this Lease,Lessee shall,upon receipt of reasonable
notice regarding commencement of litigation,at its own expense,investigate all
claims and demands, attend to their settlement or other disposition, defend
Indemnitees in all actions based thereon with legal counsel satisfactory to the
City Attorney,and pay all charges of attorneys and all other costs and expenses
of any kind whatsoever arising from any said liability, injury, damage, loss,
demand,claim or action.
16. Relationship of Parties. This Lease establishes a landlord/tenant relationship,and none
other,and this Lease must be construed conclusively in favor of that relationship. In performing
this Lease,both City and Lessee will act in an individual capacity and not as agents,representatives,
employees,employers,partners,joint venturers,or associates of one another. The employees or
agents of either party shall not be,nor be construed to be,the employees or.agents of the other
party for any purpose whatsoever.
17. Sublease and Assignment. Lessee understands and agrees that Lessee shall not assign
orsublease the Premises or any part thereof without obtaining the prior written consent of the
City. Any attempted assignment without the prior written consent of the City renders this
Lease null and void.
18. Default.
(A) Default of Lessee. If Lessee fails to pay the rent due hereunder, pay utilities,perform
required maintenance or fails to keep, Perform or observe any other provision, term,
covenant,obligation and/or condition of this Lease,City may,after 15 days written notice
to Lessee,declare this Lease terminated and reenter the Premises and remove all persons
without legal process and without prejudice to any of us other legal rights. Lessee
expressly waives(I)all claims for damages by reason of such reentry and(2)all claims for
damages due to any distress warrants or proceedings of sequestration to recover the rent or
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POUtSSiOn Of the Premises from Lessee. The City may not declare this Lease terminated
if,within 15 days after notice of any default,Lessee fully colts such default. The City's
failure to issue this notice is not a waiver of its right to issue such notice,
tD) Default of City. If City defaults in the performance of any covenant or agreement
contained herein,which continues for 30 days after Lessee's written notice to the City as
set out below,then Lessee may declare this Lease terminated and may vacate said Premises
arid owe no hirther rent and have no further obligations under this Lease, This shall be
Lessee's sole remedy upon City's default.
19. Notice. All notices demands,requests or replies provided for or permitted under this Lease
ba either party must be in writing and must he delivered by one of the following methods: (i) by
personal delivery,(ii)by deposit with the United States Postal Service as certified mail,mum receipt
naattead.pctsbige prepaid;or Oil placement of notice to Lessee on the front door of the Premises
Notice by(i)and(iii)wall be deemed effective upon delivery or placement and(ii)will be deemed
effective 2 business days after dqaosit with the United States Postal service.An these communications
must only be made to the following:
City of Corpus Christi With copy to:
.Attn: Director of Parks and Recreation City of Corpus Christi
PO Box 9277 Attn: City Attorney
Corpus Christi,Texas 78469 1201 Leopard Street,5th Floor
Corpus Christi,Texas 78401
Notice to the Lessee shall be sent to:
Either party may change the address to which notice is sent by using a method set out above. Lessee
shall notify the City of an address change within 10 days after the address is changed.
20. Modifications. No changes or modifications to this Lease may be made, nor any
provisions waived, unless the change, modification or waiver is made in writing and signed by
persons authorized to sign agreements on behalf of each party.
21. Surrender. Lessee acknowledges and understands that the lease of the Premises to Lessee
is expressly conditioned on the understanding that the Premises must be surrendered upon the
eapiration,termination or cancellation of this Lease in as good a condition as received,reasonable
Ilse and WEI?, acts of God, fire and flood damage or destruction where Lessee is without fault,
excepted. Any reasonable costs incurred for repairs or corrections for which Lessee is responsible
under this Lease an:payable by Lessee to City as additional rental on the next rental payment date
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or within 30 days written demand.
22. Interpretation. This Lease will be interpreted according to the Texas laws that govern
the interpretation of contracts. Sole venue lies in Nueces County,Texas where this Lease was
entered into and will be performed,
23. Compliance with State and Federal Laws, The following provisions are in this contract
for compliance with state and federal law, and the City does not opine on their validity or
enforceability,Lessee shall bear the entire sole burden for complying with any of these clauses.
Prior to the enforcement of any of the following clauses,the City will give at least 30 days notice
of alleged violation thereof and an opportunity for the Lessee to be heard concerning the alleged
violation,effect thereof on the City,and proposed remedial measures:
• Lessee warrants that it is and will continue to be an equal opportunity employer and
hereby covenants that no employee or customer will be discriminated against because
of race,religion,sex,age,disability,creed,color,or national origin.
• Lessee shall provide all services and act iv ities required to comply with the Civil Rights
Act of 1964,as amended,the Rehabilitation Act of 1973.Public Law 93-1122 Section
504, and with the provisions of the Americans with Disabilities Act of'1990, Public
Law 101-336[S.933].
• Lessee agrees to comply with Tex. Gov't Code §2252.908 and submit Form 1295 to
the City with the signed agreement.The Parties agree that the City is not responsible
for the information contained in Form 1295.
• In accordance with Tex.Gov't Code§2252909,Lessee must include in each contract
for the construction,alteration or repair of an improvement to this leased property a
condition that the contractor execute a payment bond that conforms to Subchapter I,
Chapter 53,Property Code and a performance bond equal to the amount of the contract
and conditioned on the faithful performance of the contractor's work in accordance
with the plans,specifications and contract documents. Lessee must provide the City
with a notice of commencement at least 90 days prior to start of construction,alteration
or repair that complies with Texas Gov't Code§2252.909.
24. Captions. The captions utilized in this Lease are for convenience only and do not in
any way limit or amplify the terms or provisions hereof.
25. Casualty. If the Premises become damaged due to weather event,fire;or other natural
or man-made disaster,such that the Premises are not deemed safe for occupation by the City
Building Official,and repairs are not completed within 10 days of the event of disaster,then
either party may terminate this lease upon 30 days written notice to the other party. without
penalty.
26. Removal of Property upon Termination. It is Lessee's responsibility to remove its
personal property from the Premises prior to termination or expiration of the Lease. Lessee
agrees that any of personal property remaining on the Premises after the termination or
expiration of the Lease automatically becomes City propertyy without any notice, action, or
process of law for disposition by the City as City deems appropriate in City Manager's sole
discretion,with no compensation to Lessee. Lessee shall be invoiced for City's costs to remove
property from the Premises after termination or expiration of the Lease.and Lessee shall pay
said invoice within 30 days of receipt.
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27. Waiver of Attorneys' Fees and Jury Trial.
(A) In case of litigation between the parties,Lessee and City agree that neither party shall be
responsible for payment of attorney's fees pursuant to any law or other provision for
payment of attorneys' fees. Both.Parties expressly waive any claim to attorneys' fees
should litigation result from any dispute between the parties to.this Agreement.
(B) In case of litigation between the parties,Lessee and City agree that they have knowingly
waived and do hereby waive the right to trial by jury and have instead agreed,in the event
of any litigation arising out of or connected to this Agreement,to proceed with a trial before
the court,unless both parties subsequently agree otherwise in writing.
28. Entirety Clause. This Lease and the incorporated and attached exhibits constitute the
entire agreement between the City and Lessee for the purpose granted. All other agreements,
promises, representations, and understandings, verbal or otherwise, with reference to the
subject matter hereon unless contained in this Lease are expressly revoked;as the parties intend
to provide for a complete understanding within the provisions of this Lease and its exhibits of
the terms,conditions,.promises,and covenants relating to Lessee's operations and the Premises
to be used in the operations.
29. Severability.
(A) If,for any reason,any section,paragraph,.subdivision,clause,provisions,phrase,or word
of this Lease or the application hereof to any person or circumstance is,to any extent,held
illegal, invalid, or unenforceable under present or future law or by a final Judgment of a
court of competent Jurisdiction,then the remainder of this Lease or the application of said.
term or provision to persons or circumstances other than those as to which it is held illegal,
invalid,or unenforceable,will not be affected thereby for it is the definite intent of the
parties to this Lease that every section,paragraph, subdivision,clause,provision,phrase,
or word hereof be given full force and effect for its purpose.
(B) To the extent that any clause or provision is held illegal,invalid,or unenforceable under
present or future law effective during the term of this Lease,the remainder of this Lease is
not affected.
(C) If any clause or provision is held illegal, invalid,or unenforceable,a clause or provision
that is similar in terms to that clause or provision will be substituted for the clause or
provision by the Court that found such clause or provision to be illegal, invalid, or
unenforceable.
30. Governmental Immunity. This Agreement is to perform a governmental function solely
for the public benefit.
31. Termination. This Lease may be terminated by the City upon 90 days written notice to
Lessee.
32. Acknowledgement. The parties expressly agree that they have each independently read
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and understood this Lease. By Lessee's execution of this Lease, Lessee acknowledges and
understands that this Lease is not binding on the City until properly authorized by City Council
and executed by the City Manager or designee.
Signatures on Next Page
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CITY OF CORP IS CHRISTI
ATTEST:
ilt‘A _ eilaevetgr__4(/44
Robert Dodd Rebecca Huerta
Director of Parks and Recreation City Secretary
APPROVED AS TO FORM: d efriez.. q ,2023 Orb,c>33?9.1.AUTHORIL4
eetAirAAA____ IT eetIRCIL --3 Id I
Adelita Cavada,Assistant City Attorney ..s=a•JitiLZair
For the City Attorney SECINTA/V
LESSEE
INSTITUTO DE CULTURA IIISPAN.ICA DE CORPUS CHRISTI,INC:
•
Name: C-),:rj );(1 (7.
Tit1eç ,k.4C tte-k-
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EXHIBIT A
INSURANCE REQUIREMENTS
I. LESSEE'S LIABILITY INSURANCE
A. Lessee must not commence work under this agreement until all insurance required has been obtained and
such insurance has been approved by the City. Lessee must not allow any subcontractor Agency to
commence work until all similar insurance required of any subcontractor Agency has been obtained.
B. Lessee must furnish to the City's Risk Manager and Contract Administer one(I)copy of Certificates of
Insurance(COI)with applicable policy endorsements showing the following minimum coverage by an
insurance company(s) acceptable to the City's Risk Manager. The City must be listed as an additional
insured on the General liability by endorsement,and a waiver of subrogation is required on all applicable
policies.Endorsements must be provided with COI.Leased premise must be listed in.Description Box of
COI.
TYPE OF INSURANCE MINIMUM INSURANCE COVERAGE
30-written day notice of cancellation, Bodily Injury and Property Damage
required on all certificates or by Per occurrence- aggregate
applicable policy endorsements
Commercial General Liability Including. 51,000,000 Per Occurrence
1. Cornrnercial.Broad Form
2. Premises—Operations
3, Products/Completed Operations
4. Contractual Liability
5.. Independent Contractors
6. Personal Injury-Advertising Injury
LIQUOR LIABILITY $1,000,000 Per Occurrence
When liquor is being sold or served.
PERSONAL PROPERTY INSURANCE Lessee, at their own expense, shall be
(if applicable) responsible for insuring all owned, leased or
rented personal property.
C. The Risk Manager retains the right to annually review the amount and types of insurance and to amend
coverage, In the event of any necessary increase,Lessee shall receive 90 days written notice prior to the
effective date.
D. In the event of accidents of any kind related to this agreement,Lessee must furnish the Risk Manager with
copies of all reports of any accidents within I0 days of the accident,
R. ADDITIONAL REQUIREMENTS
A. Lessee shall obtain and maintain in full force and effect for the duration of this Contract,and any extension
hereof, at Lessee's sole expense, insurance coverage written on an occurrence basis, by companies
authorized and admitted to do business in the State of Texas and with an A,M..Best's rating of no less than
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A-VII;
B. Lessee shall be required to submit a copy of the replacement certificate of insurance to City at the address
provided below within 10 days of the requested change.Lessee shall pay any costs incurred resulting from
said changes.All notices under this Article shall be given to City.at.the following address:
City.of Corpus Christi
Attn:Risk Manager
P.O.Box 9277
Corpus Christi,TX 78469-9277
C. Lessee agrees that with respect to the above required insurance,all insurance policies are to contain
or be endorsed to contain the following required provisions:
List the City and its officers,officials, employees, volunteers,and elected representatives as additional
insured by endorsement,as respects operations,completed operation and activities of,or on behalf of,the
named insured performed under contract with the City,with the exception of the workers'compensation
policy;
• Provide for an endorsement that the"other insurance clause shall not apply to the City of Corpus Christi
where the City is an additional insured shown on the policy;
• Provide 30 calendar days advance written notice directly to City of any suspension, cancellation,non-
renewal or material change in coverage,..and not less than 10 calendar days advance written notice for
nonpayment of premium.
D. Within 5 calendar days of a suspension,cancellation,or non-renewal of coverage,Lessee shall:provide a
replacement Certificate of Insurance and applicable endorsements to City. City shall have the option to
suspend Lessee's performance should there be a lapse in coverage at any during this contract,Failure
to provide and to maintain the required insurance shall constitute a material breach of this contract.
E. Nothing herein contained shall be construed as limiting in any way the extent to which Lessee may be
held responsible for payments of damages to persons or property resulting from Lessees or its
subcontractor's performance of the work covered under this agreement_.
F. It is agreed that Lessee's insurance shall be deemed primary and non-contributory with respect to any
insurance or self insurance carried by the City of Corpus Christi for liability arisi ig out of operations
under this agreement.
G. It is understood and agreed that the insurance,required is in addition to and separate from any other
obligation contained in this agreement.
ALTERATION OR CONSTRUCTION
In the event of any addition,alteration or construction to,in,on or about the Premises,Lessee shall obtain prior
approval, in writing, from the Risk Manager that the proposed addition, alteration or construction will not.
necessitate a change or modification in the existing insurance coverage.
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