HomeMy WebLinkAboutC2024-219 - 12/12/2024 - NA AMENDMENT NO. 1 TO LEASE AGREEMENT BETWEEN
THE CITY OF CORPUS CHRISTI AND
THE ART COMMUNITY CENTER OF CORPUS CHRISTI, INC.
WHEREAS, the City of Corpus Christi ("City"), a Texas home-rule municipal corporation,
and the Art Community Center of Corpus Christi, Inc. ("Art Center"), a Texas non-profit
organization, entered into a 20-year lease, adopted by Ordinance Number 031941 on
December 10, 2019;
WHEREAS, the Art Center has approached the City about expanding its current lease
and presenting a capital improvement and expansion of the Art Center; and
WHEREAS, the expansions, improvements, capital improvements, and maintenance
will add to the attractions available for citizens and tourists and add to the beauty of the
Bayfront.
NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:
1) This Amendment No. 1 amends the Lease Agreement between the City and the
Art Center regarding the lease generally described in the recitals above.
2) It is the intent of the parties to expand the current footprint of the property leased
to the Art Center to include the area from the parking lot to Lomax Street. The
Leased Premises are amended to read as follows:
"An area bounded on the south side by the North curb line of Cooper's Alley, the
west side by the east curb line of Shoreline Drive, the north side by south curb
line of Lomax Street (formerly William Street), and the west curb line of the old
northbound Shoreline Drive right-of-way."
3) Lease is amended to add the following section:
"2.1 Construction.
(a) City grants the Art Center during the term of this Lease the use of
the Leased Premises for construction and expansion of the current
facilities on the Leased Premises.
(b) Construction under this section means relocating parking lot(s),
renovations to current buildings, and any and all new construction
projects under Phase 1 of a long-range plan.
(c) Prior to commencing any construction, the supervising architect
shall submit the construction plans to the City Manager or designee
for approval and such approval shall be required for the issuance of
any and all building permits required by the City. Those plans shall
be submitted for final City approval to the City Manager or designee
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SCANNED
within 24 months of the date the Capital Improvement Plan is
approved by Council, under the Section 2 of the Lease Agreement.
(d) Construction must begin within 9 months of final approval by City
Manager or designee.
(e) Construction must be completed within 18 months of
commencement of construction, unless an extension is granted
prior to the expiration of 18 months. Any request for an extension
under this paragraph must be made in writing and approved by
signature of the City Manager or designee.
(f) The Art Center may not close off any part of the Leased Premises
by fencing or any other materials, limiting public access to any part
of the Leased Premises, until such time as construction begins. The
Art Center will make all effort to keep as much of the Leased
Premises open and accessible to the public at all times.
(g) The Art Center shall require any and all contractors who are
awarded contracts for construction to further all payment bonds
and/or performance bonds as required by law and provide proof of
such compliance before any construction commences.
(h) The Art Center shall include in all Art Center construction
agreements the following provision:
Contractor does hereby agree to waive all claims, release,
indemnify, defend, and hold harmless CITY and all of its officials,
officers, agents, and employees, in both their public and private
capacities, from and against any and all liability, claims, losses,
damages, suits, demands, or causes of action including all
expenses of litigation and/or settlement, court costs, and attorney
fees which may arise by reason of injury to or death of any person
or for loss of, damage to, or loss of use of any property occasioned
by error, omission, or negligent act of Contractor, its officers, agents,
employees, subcontractors, invitees, or any other person, arising out
of or in connection with the performance of this agreement, and
Contractor shall at his or her own cost and expense defend and
protect the City of Corpus Christi from any and all such claims and
demands.
(i) The Art Center shall also require the contractors in all Art Center
construction agreements to furnish insurance in such amounts as
specified by the City's Risk Manager and Certificate of Insurance
shall be provided to the City before any construction commences.
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U) The Art Center agrees that all work to be performed by it or its
contractors, including all workmanship and materials, shall be of
first-class quality and shall be performed in full compliance and in
accordance with all federal, state, and local laws, ordinances,
codes, and regulations and such work shall be subject to City
inspection during the performance thereof and after it is completed.
(k) The Art Center shall discharge all obligations to contractors,
subcontractors, materialmen, workmen, and/or other persons for all
work performed and for materials furnished for or on account of the
Art Center as such obligations mature. The Art Center expressly
agrees that it will neither give nor grant, nor purport to give or grant
any mechanic's or materialmen's lien upon the City's property or
upon any Art Center construction and improvements thereupon in
the process of construction or repair, nor allow any condition to exist
or situation to develop whereby any party should be entitled, as a
matter of law, to a mechanic's or materialmen's lien against the
City's property or construction and improvements thereon, and the
Art Center will discharge any such lien within 30 days after notice of
filing thereof.
(I) Before any work on City property begins, the Art Center shall
present the City Manager or designee with evidence of contractors'
insurance coverages and City building and construction permits."
4) Lease is amended to add the following section:
"2.2. Default under 2.1.
(a) In the event that the Art Center fails to meet the construction
requirements under Amendment No. 1, 2(A), the Leased Premises
will revert to the original lease provisions, and the area bounded
from 15 feet north of what was formerly the north curb line of John
Sartain Street (formerly known as Laguna Street) to the north side
by south curb line of Lomax Street (formerly William Street) will
revert back to the City without any further amendment.
5) Lease is amended to add the following section:
"2.3 Costs of Construction. Unless otherwise agreed in writing by the City
Manager, the complete cost of developing all necessary plans and
specifications, as provided in this Amendment (Lease), and the cost of
construction of the construction and improvements at the Art Center shall
be borne solely by the Art Center and be at no expense to City. The Art
Center shall pay all taxes, special assessments, or levies, if any, assessed
during the term against or relating to the Art Center construction and/or
improvements City's property, including ad valorem taxes pursuant to the
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Texas Property Tax Code, until such time as ownership of such is
transferred to the City."
6) Lease is amended to add the following section:
"2.4 Ownership of Art Center Improvements. All alterations and Art Center
improvements on or in City's property at the commencement of the term,
or those that may be installed or erected during the term, shall revert to
the City and shall become part of City's property upon completion and
acceptance by the City Manager, no later than the end of the lease
agreement and any amendments thereto. Any warranties given to the Art
Center regarding construction and/or improvements, or any part thereof,
shall be transferred and assigned to City at the same time as the Art
Center Improvements are accepted by the City."
7) Lease is amended to add the following section:
"2.5 Maintenance of Art Center Improvements. Upon completion of
construction and/or improvements, the Art Center, at its sole expense,
shall perform maintenance and repair to the Leased Premises, including
landscaping, and repairs and maintenance of the HVAC system(s), and
roof(s), buildings, parking, and grounds, and they shall be kept in good
condition and attractive appearance. The City shall be responsible for
utilities such as water, wastewater, gas, and garbage collection and
disposal."
8) Lease is amended to add Paragraph 3(b) to read as follows:
"(b) The Art Center shall be responsible for all maintenance and repairs on any
and all new facilities and/or buildings once construction begins on the
Leased Premises and through the term of this Lease. The Art Center shall
take over maintenance and repair of all parking lots and shall take over all
landscaping duties once construction begins on the Leased Premises and
through the term of this Lease. The City will continue maintenance and
repair on the exterior paint of the existing building."
9) Lease is amended to add the following section:
"20. The City shall have the right to use the premises or any part thereof rent-
free for meetings, seminars, training classes, or other non-commercial
uses, provided that City shall promptly reimburse the Art Center, for any
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out-of-pocket expenses incurred by Art Center (such as the cost of set-up
and take-down personnel and other expenses) in connection with such
use. Such non-commercial use of the premises by City shall not compete
with or conflict with the dates previously booked by the Art Center for
paying events booked in advance upon reasonable notice to Art Center.
Upon request of City, the Art Center shall provide a list of available dates
for the City's use of the Art Center.
10) All other terms and conditions of the previously executed Lease between the
parties which are not inconsistent herewith shall continue in full force and effect.
Signatures on next page.
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EXECUTED this `2 day ofettnabeL,2024 , by the authorized
representative of the parties.
City of Co us Christi
ATTEST
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By: CITY SECRETARY
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Art Community Center of Corpus Christi, Inc.
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Date: 2 — 12— 2D ZLI--
Approved as to Legal Form on (•) of /c 4n)24 2024:
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Adelita Cavada, Assistant City Attorney
Attorney for the City Attorney
City of Corpus Christi
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