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HomeMy WebLinkAbout16440 ORD - 08/05/1981sp;8/5/81;lst AN ORDINANCE APPROVING ASSIGNMENT OF THE CORPUS CHRISTI BAIT STAND LEASE FROM CHARLES M. HARRIS TO THE U.S. SMALL BUSI- NESS ADMINISTRATION, SAID BAIT STAND BEING SITUATED ON THE SOUTH SHORE OF NUECES BAY BETWEEN THE CAUSEWAY AND THE PUBLIC BOAT RAMP, ALL AS MORE FULLY SET FORTH IN THE ASSIGNMENT AGREEMENT, A SUBSTANTIAL COPY OF WHICH IS ATTACHED HERETO AND MADE A PART HEREOF, MARKED EXHIBIT "A"; AND DECLARING AN EMERGENCY. WHEREAS, the City Council by Ordinance No. 16097, passed and approved on March 11, 1981, authorized execution of a lease with Charles M. Harris for construction and operation of a bait stand lease on the south shore of Nueces Bay between the Causeway and the public boat ramp; and WHEREAS, in accordance with the terms of the aforesaid lease, the operator of the bait stand shall obtain written approval prior to assigning or subcontracting the said lease; and WHEREAS, Charles M. Harris desires to assign the lease granted by Ordinance No. 16097, and the City is agreeable to said assignment: NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the City Manager be and he is hereby authorized to approve assignment of the lease of the bait stand situated on the south shore of Nueces Bay between the Causeway and the public boat ramp, being the same lease area authorized for bait stand lease by Ordinance No. 16097, passed and approved on March 11, 1981, said bait stand lease to be assigned by Charles M. Harris to the U. S. Small Business Administration, all as more fully set forth in the Assignment Agreement, a substantial copy of which is attached hereto, marked Exhibit "A", and made a part hereof. SECTION 2. That upon written request of the Mayor or five Council members, copy attached, to find and declare an emergency due to the need for preserving public property by authorizing assignment of the bait stand lease as hereinabove set forth, and expediting construction of necessary improve- ments, such finding of an emergency is made and declared requiring suspension of the Charter rule as to consideration and voting upon ordinances or 40440 Sae LM111. SEP 2 71984, resolutions at three regular meetings so that this ordinance is passed and shall take effect upon first reading as an emergency measure this S day of August, 1981. ATTEST: 4C'�t�J` , ecretary d MAYOR THE CITY OF CORPUS CHRISTI, TEXAS APPROVED: 54clAY OF AUGUST, 1981 .Bruck, City Attorney S .‘:'E OF Texas COUNTY OF Nueces (Page 1 of 2 rues) ;SSI 1=N T OF FF.:J. E: SATE LEASE r•. ;........:rT ) This assignment of lease and agreement made and entered into by and between Charles Michael Harris, dba Sun Fishing Supplies (lessee - hereinafter called "Borrower"); and City of Corpus Christi, Texas, (hereinafter called "Lessor"); WITNESSETH: WHEREAS, Borrower has heretofore leased from Lessor a certain tract of land owned by Lessor situated and described as follows: (See exhibit "A") WHEREAS, Small Business Administration (hereinafter referred to as "Bank/SBA") has agreed to lend to Borrower the sum of thirty-one thousand four hundred dollars and no/100 ($31,400.00 ) to be used to repair/replace damaged machinery/equipment, inventory and leasehold improvements. WHEREAS, such loan is for the mutual benefit of Borrower and Lessor as the funds advanced are to be used for the benefit of the business conducted on said leased premises; NOW, THEREFORE, for and in consideration of the mutual agreements and cov- enants herein contained, and of disbursement of said loan or any part there- of, IT IS MUTUALLY AGREED BY AND BETWEEN ALL PARTIES HERETO, as follows: 1. That Borrower, with the consent of Lessor, hereby ASSIGNS, TRANSFERS and CONVEYS unto Bank/SBA, with right of reassignment, a certain lease between Borrower and Lessor dated the 22d day of March 1981 , for a term of 20 years covering the premises above mentioned and described, and the buildings thereon, TO HAVE AND TO HOLD the same for and during the remainder of the term mentioned in the lease, and all renewals and extensions of said term. 2. Lessor covenants that, in consideration of Bank/SBA making said loan to Borrower, Lessor (a) will give written notice to Bank/SBA of any default of Borrower under said lease; (b) will not terminate said lease for any such default unless the Bank/SBA fails to cure such default; and (c) sb long as Bank/SBA has not entered into possession of the premises leased in said lease for the purpose of operating the said business, it shall not be liable for any rent or any other obligation of the Borrower pursuant to, or in connection with said lease, and Borrower shall remain liable for all such rents and obligations. LESSOR further COVENANTS AND AGREES, as follows: (a) That, as of a date not more than thirty (30) days prior to any dis- bursement of account of the loan, borrower is not in default under any terms of the leased premises; DAL VI Form 6. (4-1970) PREVIOUS AREA E:TIGNS ARE OBSOLETE. REF:• ND 510-1:. ,,rage _ or d r gess '(b) That in the event of any default under the terms of said lease, Lessor will not terminate the lease or take any action to enforce any claims with respect thereto without ,;ivinr, to the holder of the ::ote at least sixty (60) days prior written notice and the richt to cure such default eithing said period; (c) Subordinates to all liens securing the Note, until payment in full of the Note, every lien and every right to institute proceedings to establish any lien or claim against any or all of the property hypothecated as collateral for the Note. (d) That none of the property of the Borrower situated on said leased premises constitutes fixtures or any part of the real estate of the Lessor as same has been placed on said premises with the agreement and understanding that such property may be removed therefrom by the Borrower or assigns and all property hereafter placed on the leased premises by Borrower may be removed therefrom and shall not be considered a part of the real estate. (e) Certifies that he (it) has full power and authority to execute this instrument, and has title to the leased premises or such property rights therein as to make effective the vesting in Borrower of rights with respect thereto in accordance with the terms of said lease and this instrument. IT IS MUTUALLY AGREED BY AND BETWEEN ALL THE PARTIES HERETO that this assignment and agreement shall be executed in three (3) counterparts, each of which shall have the same force and effect as an original, and one shall be attached to and become a part of the lease heretofore executed by the Lessor to the Borrower; and that the terms used to designate any of the parties herein shall be deemed to include the heirs, representatives, successors and assigns of such parties. TO ALL OF WHICH WE MUTUALLY AGREE this day of ATTEST: WITNESS: ATTEST: City Secret APPROVED: DAY OF AUGUST, 1981 J. Bruc k, Atorne ATTACH A PROPRIA EiCit ICAeOWLEDGMENTS FOR EACH PARTY HERETO U.S. Small Business Administration By: Charles Michael Harris, dba Sun Fishing Supplies By: (Borrower) City of Corpus Christi R. Marvin Townsend, City Manager (Lessor) APPROVED:Assistant City'Manager DAL .'orm 64 (4-1970) PREVIOUS%-A_REA `EDT-'_^IO.NS ARE OBSOLETE' ND 510-1A THE STATE OF TEXAS 0 COUNTY OF BEFORE ME, the undersigned authority, on this day personally appeared , known to me to be the person and officer whose name is subscribed to the foregoing instru- ment and acknowledged to me that the same was the act of the said U. S. Small Business Administration, and that he executed the same as the act of said U. S. Small Business Administration for the purposes and consider- ation therein expressed, and in the capacity therein stated. GIVEN under my hand and seal of office this the day of , 1981. Notary Public in and for County, Texas THE STATE OF TEXAS I COUNTY OF NUECES BEFORE ME, the undersigned authority, on this day personally appeared Charles M. Harris, known to me to be the person whose name is sub- scribed to the foregoing instrument and acknowledged to me that he executed the same for the purposes and consideration therein expressed. GIVEN under my hand and seal of office this day of , 1981. Notary Public in and for Nueces County, Texas THE STATE OF TEXAS COUNTY OF NUECES BEFORE ME, the undersigned authority, on this day personally appeared R. Marvin Townsend, City Manager of the City of Corpus Christi, Texas, a municipal corporation, known to me to be the person and officer whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same as the act and deed of said City of Corpus Christi for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN under my hand and seal of office this the day of , 1981. Notary Public in and for Nueces County, Texas NUECEs DAY BAIT STAND LI:AgF; AREA Being a portion of Nnecc•:; Bay and a port.ion of. Block 415, Brooklyn Addition, as shown by map of r:r:ozd in Volume A, Page 32, b,e' Records, Nueces Count par- ticularly de:,cribcd by and o' rs as' and more metsbouncy <:. follows BEGINNING at a point in the centerline of State Highway No. 181 right-of-way, said point, being Engineers Station 995 + 01.33 and being the South end of the concrete deck of the Nueces Bay Causeway; THENCE N. 50° 23' E. along the centerline of said right-of- way a distance of 230.83 feet to a point which is Engineers Station 992 + 64.5; THENCE N. 39° 37' W. a distance of 140.08 feet to a point for the Southeast and beginning corner of the tract of land herein described; THENCE N. 58° 01' 25" W. point; THENCE N. 31° 58' 35" E. Nueces Bay at 70.53 feet to a point on the bottom THENCE S. 58° 01' 25" E. nay, a distance of 100.0 a distance of 100.0 feet to.a , passing the normal shoreline of , in all a• dist ;:ce of 175.0 feet of said Nueces Bay; along the bottom of said Nueces feet to a point; THENCE S. 31° 58' 35" W., along the bottom of said Nueces Bay, passing the normal shoreline of said bay at 111.20 feet, in all a distance of 175.0 feet to the place of beginning and containing 17,500 square feet or 0.401 acres, more or less. • EXHIBIT "A" r THE STATE OF TEXAS X X COUNTY OF NOECES X AGREEMENT KNQl ALL MEN BY THESE PRESENTS: 3- �I THIS AGREEMENT is made and entered into by and between the City of Corpus Christi, Texas, a municipal corporation, hereinafter referred to as City, pur- suant to a Resolution authorizing this Agreement, and Charles M. Harris hereinafter referred to as Operator, and for such, WITNESSETH: 1. That in consideration of the covenants herein contained on the part of Operator to be kept and performed, City does hereby grant to Harris Charles M. , a nonexclusive franchise for the purpose of building and operating a bait stand business to further public recreation in the Coastal Public Lands described on Exhibit "A" attached hereto and made apart of this Agreement_ 2. This Agreement is subject to all provisions of Coastal Public Lands Lease CL -80-010, authorized and approved by ordinance no. 15827 passed on. October 22, 1980, and to all provisions of Texas Department of Highways and Public Transportation Multiple Use Agreement c= October 6, 1977, authorized and approved by ordinance no. 13968 passed on October 5, 1977- 3. The term of this Agreement shall be for a period beginning on April 1, 1081 and ending on September 1, 2000 4. The City may terminate this Agreement by giving notice to the Operator of its intent to do so at least one year in advance of the date of termination. Operator may terminate this Agreement by•giving notice to the City of its intent to do so at least thirty (30) days in advance of the date of termination_ Both parties mutually agreeing may terminate this Agreement at any time- s. For and in consideration of this Agreement, Operator hereby covenants and agrees with and to City that it will pay to City of Corpus Christi, Texas the amount of $100 per month for the first twelve months of the term of this Agreement; and thereafter either $200 per month or 5% of gross sales and re- ceipts for the month, whichever is greater. Payments shall be made by Operator for each calendar month and said monthly payments shall be due on the 20th day of the following month. Operator agrees to submit a report to City accompanying the monthly payments of the gross sales and receipts for the preceding month. If Operator shall knowingly furnish any incorrect statement of gross sales and receipts, this will constitute default on the part -of Operator entitling City at its option to declare this Agreement terminated. Any such report which shall understate the gross sales and receipts for any month by as much as 10% of the true amount thereof shall be conclusively deemed to have been knowingly and falsely furnished by Operator, and City in order to exercise its option of termination shall only be required to establish such falsity and shall not be required to establish actual knowledge on the part of Operator of such falsity. Operator agrees to submit to the City true and accurate copies of Texas sales tax reports and Federal income tax reports within 30 days after such reports • are filed with the governmental authority. city and Operator agree that the method of calculating the amount to be paid hereunder may be renegotiated at the option of either party at the end of calendar year 1983, and again at the end of each succeeding two year period; and further that if mutual agreement is not reached on such occasions, then City may unilaterally increase the amount • required to be paid, but in no event will any single increase exceed 25% of the payment rate in effect immediately preceding such occasions. The increase may be in either the flat monthly rate or the percent of gross sales and receipts, or both, at the discretion of City. 6. Operator covenants that it will not assign this Agreement nor subcontract the use of the whole or any part of said premises, other than in the normal course of business, unless it has first obtained the written permission of the City. It is agreed and understood that temporary renting of boat stalls, moorings, or yardage constitutes the normal course of business of Operator, and does not con- stitute subcontract or assignment of the premises. 7. Operator shall construct and repair all improvements and install all equipment in compliance -with the City of Corpus Christi building code and all other applicable laws and ordinances, and also with the following additional standards for construction: a. 'Accessory off-street parking spaces shall be well defined with header curbs or other physical improvements. -2- b_ No outside storage of materials shall be permitted except bait boxes for live shrimp and bait_ c_ Restrooms shall be located at the west end of the building with exterior access. A sign shall be installed flat against, or painted on, the west wall stating "Public Restrooms" in six inch letters. All identification signs shall be installed on restroom doors. Restrooms shall be properly maintained and open to the public at no charge at all times. Building drains shall be connected to the City of Corpus Christi sanitary sewer system within 90 days if and when such sewer service becomes available to • the site; in the interim, an approved sewage disposal system shall be used. d. One advertising sign may be installed flat against, or painted on the south wall of the building. One sign listing hours of operation and emergency information shall be posted at the main entrance. -One sign providing information to boaters may be installed on the pier; such sign shall not exceed sixteen square feet in area and shall be installed flat against the pier or railing. No signs other than the foregoing shall be permitted outside of the building. Permitted signs shall not have any moving or electrical parts. e. Exterior lighting shall be restricted so that no lights shall be cast in an upward direction and no lights shall be cast on any land or water more than 100 feet from the lease area. f. No sewage, debris, junk, trash, or litter shall be deposited or allowed to accumulate on the land or in the waters within or immediately adjacent to the premises. g. Exterior material requiring painting shall be painted annually, unless Operator obtains written waiver of this requirement from City. 8. Operator agrees to provide its services to the public and to be open for business according to reasonable business hears consistent with the business hours of other operators in the immediate area, current business demand and good practice_ Operator further agrees to operate seven days per week, 24 hours .per day if necessary to reasonably satisfy consumer demand, 9. It is expressly understood that City shall have the right to enter the premises at reasonable hours to inspect facilities and otherwise determine Operator's compliance with the Agreement. -3- • 10. Operator agrees to post in a conspicuous place at each location where merchandise is sold, or fees are to be charged, the price or cost of such mer- chandise or service, which shall not be in excess of those charged under similar conditions elsewhere within the City of Corpus Christi. 11. All improvements on the premises shall be the security for prompt payment of accrued payments hereunder, and as a condition for this Agreement, Operator agrees that all homestead exemptions be waived. It is understood and agreed that, in the event of default in the payment of any amount due, or in failure of the Operator to keep any of the covenants or agreements herein, or upon the violation by Operator of any city ordinance or other law in the carrying out of this Agreement, then, at the option of City, this Agreement shall terminate, provided however, that the City shall have given written notice to the Operator of the default claimed and Operator has not cured such default within thirty (30) days of the giving of such notice. It is further understood and agreed that in such event, all buildings and improvements on the premises shall remain as attached to the land and be and become the property of the City to secure payment of all unpaid, accrued payments due, but not otherwise, unless Operator, within 120 days from the date of re-entry by the City shall pay all unpaid and accrued payments then in default at the date of re-entry to the City; and the City shall at once have all right of re-entry upon said premises and possess, have and enjoy the same which it would have upon the expiration of this Agreement by lapse of time. 12. It is further agreed and understood that City shall not be liable to Operator, or to any other person whatsoever, for any injury, loss or damage to any person or property in or upon the Coastal Public Lands hereinabove described. Operator hereby consents and agrees to assume all liability for or on account of any injury, loss or damage above described, and to indemnify and forever hold harmless City against each and every claim, demand or cause of action that may be made against City by reason of or in any way arising out of any defect or imperfection in any building, pier, wharf, sidewalk, driveway, street, or any other structure in or upon the Coastal Public Lands hereinbefore described. Operator agrees in this connection to carry public liability insurance in the minimum sum of $300,000 for personal injury and $50,000 for property damage, -4- in a company or companies acceptable to City, with a loss payable clause making City an additional insured, and to maintain a copy of said insurance policy on file with City. Coverage of said insurance shall include the entire premises including piers, wharfs, and any other waterfront facilities. 13. It is further agreed and understood that in the event of a constructive eviction due to natural disaster, act of God or any other cause beyond the control of either party to this Agreement, Operator's lease payments hereunder shall abate and cease until Operator shall have substantially restored the lease premises to a condition necessary to operate the business; provided Operator begins such re- storation timely and prosecutes such restoration with reasonable diligence, and provided further that in no event shall lease payments abate for a period after each disaster aforesaid of longer than 180 days. EXECUTED this the Z 2 day of mc:Lv , 1981. ATTEST: APPROVED. J. BRUCE Wet, - YS /9"/ ATT.RNEY YCOCK; CI By !Til Assistant Cit ney CITY OF CORPUS CHRISTI OPERATOR nsend, C y Manager APPROVED: / <e (Dept. Head) 1_ 1.1.4.O t.2AUTiieR1[ti BY COUNCIL _._.] -ii-?! SECRC ARY NUECES BAY BAIT STAND LEASE AREA Being a portion of Nueces Bay and a portion of Block 415, Brooklyn Addition, as shown by map of record in Volume A, Page 32, Map Records, Nueces County, Texas, and more par- ticularly described by metes and bounds as follows: BEGINNING at a point in the centerline of State Highway No. 181 right-of-way, said point. being Engineers Station 995 + 01.33 and being the South end of the concrete deck of the Nueces Bay Causeway; THENCE N. 500 23' E. along the centerline of said right-of- way a distance of 236.83 feet to a point which is Engineers Station 992 + 64.5; THENCE N. 390 37' W. a distance of 146.08 feet to a point for the Southeast and beginning corner of the tract of land herein described; THENCE N. 58° 01' 25" W. a distance of 100.0 feet to.a point; THENCE N. 31° 58' 35" E., passing the normal shoreline of Nueces Bay at 70.53 feet, in all a distance of 175.0 feet to a point on the bottom of said Nueces Bay; THENCE S. 58° 01' 25" E., along the bottom of said Nueces Bay, a distance of 100.0 feet to a point; THENCE S. 31°-58' 35" W., along the bottom of said Nueces Bay, passing the normal shoreline of said bay at 111.20 feet, in all a distance of 175.0 feet to the place of beginning and containing 17,500 square feet or 0.401 acres, more or less. EXHIBIT "A" Corpus Christi, Texas day of , 1981 TO THE MEMBERS OF THE CITY COUNCIL Corpus Christi, Texas For the reasons set forth in the emergency clause of the foregoing ordinance or resolution, an emergency exists requiring suspension of the Charter rule as to -consideration -and voting upon ordinances or resolutions at three regular meetings;_I/we, therefore, request that you suspend said Charter rule and pass this ordinance or resolution finally on the date it is introduced, or at the present meeting of the City Council: Respectfully, Respectfully, MAYO Council Members THE CITY OF CORPUS CHRISTI, TEXAS The above ordinance was passed by the following vote: Luther Jones Betty N. Turner Jack K. Dumphy Bob Gulley Herbert L. Hawkins, Jr. Dr. Charles W. Kennedy Cliff Zarsky 16440