Loading...
HomeMy WebLinkAbout16553 ORD - 09/23/1981mb;9/23/81;2n@ ' AN ORDINANCE AUTHORIZING EXECUTION BETWEEN THE CITY OF CORPUS CHRISTI AND NORMAN M. PINSON AND M. CATHERINE PINSON OF AN EIGHTEEN -MONTH LEASE WITH THREE ONE-YEAR RENEWAL OPTIONS FOR 17,236 SQUARE FEET OF OFFICE SPACE AT THE WEBER BUILD- ING AND FOR PARKING SPACE FOR THE FINANCE DEPARTMENT, AT A MONTHLY RENTAL OF $7,668, WITH ADJUSTMENTS FOR INCREASES IN THE COST OF LIVING INDEX, REAL ESTATE AND TAXES ON IMPROVEMENTS, AND PARKING LOT RENTALS, ALL AS FULLY SET FORTH IN THE LEASE AGREEMENT, A SUBSTANTIAL COPY OF WHICH IS ATTACHED HERETO AND MADE A PART HEREOF, MARKED EXHIBIT "A"; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the City Manager be authorized to execute with Norman M. and M. Catherine Pinson an eighteen -month lease with three one- year renewal options for 17,236 square feet of office space at the Weber Building and for parking space for the Finance Department, at a monthly rental of $7,668, with adjustments for increases in the cost of living index, real estate and taxes on improvements and parking lot rentals, all as more fully set forth in the lease agreement, a substantial copy of which is attached hereto and made a part hereof, marked Exhibit "A". 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 to execute the aforesaid lease agreement in order to maintain efficient admi- nistration of City affairs, such finding of an emergency is made and declared requiring suspension of the Charter rule as to consideration and voting upon ordinances or resolutions at three regular meetings so that this ordinance is passed and shall to ffect upon first reading as an emergency measure this the 23 day of , 1981. ATTEST: ectardy APPROVED: 0.3114 DAY OF , 1981: J. BRUCE AYCOCK, CITY ATTORNEY MAYO THE CITY OF CORPUS CHRISTI, TEXAS SEP Z'71984 �lt1�MED THE STATE OF TEXAS COUNTY OF NUECES LEASE AGREEMENT THIS LEASE AGREEMENT MADE AND ENTERED INTO by and -between NORMAN M. PINSON and M. CATHERINE PINSON, of Nueces County, Texas, sometimes hereinafter called Landlord, and sometimes hereinafter called "Lessor", and the CITY OF CORPUS CHRISTI, sometimes hereinafter called City, and sometimes hereinafter called "Tenant", WITNESSETH: ARTICLE I DEFINITIONS Except as otherwise specifically defined hereinafter, the following terms, for the purpose of this lease, shall be defined as follows: 1.1 Date of lease: June 1, 1981 1.2 Term of Lease: Eighteen months with option to renew for additional three one-year terms. 1.3 Monthly Rental: First Floor - 3,235.86 sq. ft. at 50 cents $1,618.00 Second Floor - 7,000 sq. ft. at 40 cents 2,800.00 Third Floor - 7,000 sq. ft. at 40 cents 2,800.00 Parking Spaces - 52 450.00 1.4 Security Deposit: None 1.5 Permitted use: Offices and parking for the personnel of the City of Corpus Christi, Texas. 1.6 Address of the City: Director of Finance, City of Corpus Christi Box 9277, Corpus Christi, Texas 78408. 1.7 Address of Landlord: Norman M. Pinson and M. Catherine Pinson, P. 0. Box 6177, Corpus Christi, Texas 78411. 1.8 Demised Premises: a) First Floor - approximately 3,235.86 square feet of space on the first floor of the Weber Building; b) Second Floor - Approximately 7,000 square feet of space com- prised of the entire second floor of the Weber Building. c) Third Floor - Approximately 7,000 square feet of space com- prised of the entire third floor of the Weber Building; said Weber Building being located at 319 Mesquite Street, Corpus Christi, Texas, located on Lot Five (5) in Fractional Block Seventeen (17), Beach Portion Addition to the City of Corpus Christi, Nueces County, Texas, as shown by the map or plat there- of, recorded in Volume A. Page 3, Nap Records, Nueces County Texas; and • d) Parking Lot - Fifty-two (52) parking spaces located on Lots Three (3) and Four (4) and Fractional Lots Nine (9) and Ten (10), in Fractional Block Seventeen (17), Beach Portion Addi- tion to the City of Corpus Christi, Nueces County, Texas. Exii.. 'f%`- ARTICLE II DEMISE AND TERM 2.1 In consideration of obligation of the City to pay rent as hereinafter provided and in consideration of the terms, covenants and conditions hereof, Landlord hereby leases unto City the demised premises as defined in Article I, Paragraph 1.8 hereof, for a term commencing: June 1, 1981 and ending on November 30, 1982 unless extended as provided herein. 2.2 The City may renew this lease for three (3) additional terms covering the following periods, respectively: i) December 1, 1982 through November 30, 1983 ii) December 1, 1983 through November 30, 1984 iii) December 1, 1984 through November 30, 1985 Each notice of renewal shall be given separately at least ninety (90) days prior to the end of the respective lease term, by sending written notice to Landlord of City's intention to renew. After expiration of the original lease term on No- vember 30, 1982, City may, by reason of City's intention to consolidate Finance Department offices, terminate any lease renewal by giving Landlord six (6) months advance notice, in writing, of the City's intention to terminate. Notwithstanding anything else herein contained to the contrary, City may cancel this lease should the present or any future City Council of the City of Corpus Christi not appropriate in any fiscal year funds for the rental payments re- quired by this lease. No penalty shall attach in the event of any such non -appro- priation. In the event of non -appropriation, City shall give the Lessor written notice within sixty (60) days following the commencement of each new fiscal year (which presently runs from August 1 to July 31) before cancellation of this lease and City shall not be obligated to make any rental payments beyond the end of the sixty-day notice; provided City shall have vacated the leased premises on or by the end of the sixty-day notice. Lessor shall have all the rights and remedies under the law to take possession of the premises in the event of such cancellation. All notices to Landlord expressing City's intention to either renew or terminate this lease as described above shall be given by sending such written notices by certified mail, return receipt requested, to Landlord at the address given in Paragraph 1.7. Notwithstanding anything else herein contained to the contrary, City may, without notice, cancel the entire lease agreement at any time the parking lot land- lord -tenant relationship between Landlord or their assigns, and the owners of the related and subject demised parking lot property - Pearl L. Garrett, R. J. Garrett -2- and Mary Pearl Calbe, as Independent Co -Trustees of the Trust Estate created by the Will of J. E. garrett, deceased, and Pearl L. Garrett, individually - or their successors or assigns, ceases to exist. ARTICLE III RENT 3.1 Rental shall accrue hereunder from and after the rental commence- ment date described in Article II. 3.2 Subject to any adjustment of rent, as provided in Article I, Paragraph 1.8 (d) and subject to any increase as provided in Article III, Paragraph 3.4, City shall pay to Landlord as rent the amounts specified in Article I, Paragraph 1.3. If such rent shall be payable for a fraction of a month, the amount payable shall be that sum that shall equal the product of the monthly rent, multiplied by a fraction, the numerator of which shall be the number of days of said fraction of said month and the denominator of which shall be the total number of days of said month. 3.3 Should the ad valorem taxes, assessments and governmental charges (hereinafter referred to as "General Real Estate Taxes") levied against the real estate and improvements for 1981 and subsequent years exceed the General Real Estate Taxes against the Weber Building (land and improvements) for 1980, City shall pay to Landlord, as additional rent hereunder, a proportionate share of such increase, computed on the ratio that the total floor area of the demised premises bears to the gross lease area included within the Weber Building, as said gross lease area exists on the first day of January of said year. Such ex- cess in General Real Estate Taxes shall be paid in a single payment, on or before the latter of (i) December 1 in the year of such increase or (ii) forty-five (45) days after Lessor no- tifies City of the amount of such increase. Such notification shall be in writing, requesting payment and shall contain a statement of the amount of taxes for 1980, the amount of taxes for the current year, and the amount of increase in taxes. In the event City occupies the leased premises for a portion of any year, the amount of increase in taxes for such year to be paid by City to Landlord shall be prorated. 3.4 Notwithstanding anything else to the contrary contained herein, it is expressly agreed by City that any rental payments becoming due hereunder, commencing December 1, 1984 shall be adjusted an- nually to provide for any increase in the Cost of Living Index. Such payments shall be determined as of September, 1984, and re- determined each September thereafter, as follows: There is published by the U.S. Department of Labor, Bureau of Labor Statistics, a periodical designated Monthly Labor Review. This periodical, among other data, currently includes a table designated 22, which table reflects current Consumer Price In- dex For All Urban Consumers (U.S. Average), and assigns to such table a monthly index number. Illustrative: The monthly index number for March, 1981 is 265.1 - 1967 being 100. The monthly index number to be used as the Base Index Number in computing payments to be paid during the terms of this lease, commencing December 1, 1984, shall be the monthly index number as reflected in Table 22 of the Monthly Labor Review being the Con- sumer Price Index For All Urban Consumers (U.S. Average) for the -3- month of March, 1981. The annual index numbers shall be the monthly index number reflected by said Table 22 for each preceding September. That is to say, the monthly index number for March, 1981 is 265.1 and assuming that the monthly index number for September, 1984 is 279.1, and further assuming that there are no adjustments in the fixed rent, as provided in Article I, Para- graph 1.8 (a), the payments commencing December 1, 1984 shall be 1.05281 (279.1/265.1) times the payments provided for on the beginning date of this lease. Thereafter, payments shall be likewise adjusted each December 1, using the index number for March, 1981 as the Base Index Number, and using the monthly in- dex number for each September preceding each December lot for an annual index number. In the event, however, that such com- putations should reflect payments of a sum less than that pro- vided herein, then there shall be no reduction in said payments. It is further agreed by the parties that the above procedure has been adopted to provide a formula for the adjustment of payments in the event there has been an increase in the cost of living over the beginning date of this lease. For that reason, if the above publication shall cease to be published, or the index here- in selected shall cease to be compiled or the base used for the determination of the index shall be changed, then the parties hereto agree that some new formula will be agreed upon which will provide a procedure by which a determination can be made if there has been an increase in the cost of living as compared to the cost of living that existed at the beginning date of this lease; pro- vided, however, in the event that said Monthly Labor Review shall have been merged with some other U.S. Government publication or periodical, then such successor publication or periodical shall be used to determine the annual index. 3.5 Except in any case where interest is otherwise provided for herein, in the event City fails to pay any rental or other monies which may become due to Landlord from City under the provisions hereof, within ten (10) days after the same shall have become due and payable, such rentals or other monies shall bear interest at an annual rate of one percentage point over the prime commercial rate quoted on the due date by Corpus Christi National Bank, Corpus Christi, Texas (but in no event less than an annual rate of ten per cent [10%], and in no event in excess of any limitation pre- scribed by law) from the due date until paid. In the event such Bank or Successor Bank should fail, liquidate, or be succeeded by another bank then Landlord and City shall select another bank as the Bank that shall establish the prime commercial rate. ARTICLE IV USE AND CARE OF DEMISED PREMISES 4.1 The demised premises may be used and occupied solely for the per- mitted use, as defined in Article I hereof. City shall not at any time leave the demised premises vacant, but shall in good faith and with due diligence and efficiency continuously throughout the term of this lease, operate the business for which the demised premises are leased. 4.2 City shall not, without Landlord's prior written consent, keep anything within the demised premises or use the demised premises for any purpose which increases the insurance premium cost or invalidates any insurance policy carried on the demised premises or any part of the Weber Building. If Landlord should consent to such use and occupancy by City, City shall pay on demand as additional rent, the additional insurance premiums resulting from such use and occupancy. All property kept stored and maintained within the demised premises by City or those claiming under the City shall be at the City's sole risk. -4- r 4.3 City shall take good care of the demised premises and keep the same free from waste at all times. City shall keep the demised premises, service ways and areas adjacent to the air conditioning equipment neat, clean and free of dirt and rubbish at all times and shall store all trash and garbage within the demised premises in the kind of container specified by Landlord and shall deposit said materials in areas designated from time to time by the Landlord for placement thereof. ARTICLE V MAINTENANCE AND REPAIR OF PREMISES: ALTERATIONS: LANDLORD'S RIGHT OF ACCESS 5.1 Landlord shall keep the foundation, the exterior walls and roof of the demised premises in good repair, except that Landlord shall not be required to make any repairs occasioned by the act or negligence of the City, it's employees, customers, invitees, licensees or con- cessionaires. In the event any portion of the demised premises should become in need of repairs required to be made by Landlord hereunder, City shall give immediate written notice thereof to Landlord; and Landlord shall not be responsible in any way for failure to make any such repairs until Landlord shall have failed to commence such repairs within thirty (30) days from the date of receipt of said notice in writing from the City and thereafter failed to proceed diligently to complete the same. 5.2 City shall be responsible for the maintenance and repair of the interior walls and floors of the demised premises of the Weber Building, except for damage to walls and floors due to water seeping through walls or the roof. City shall keep the demised premises in good, clean condition and shall at it's sole cost and expense make all needed repairs and replacements, including, but not limited to, replacement of cracked or broken glass and lightbulbs and ballasts, and repairs, replacements and alterations required by any governmental authority, except for repairs and replacements required to be made by Landlord under the provisions of this Lease. City shall also make necessary repairs and replace- ments of its fixtures required for the proper conduct of its busi- ness. If any repairs required to be made by City hereunder are not made within thirty (30) days after written notice and delivered to City by Landlord, Landlord may at their option, make such repairs without liability to City for any loss or damage which may result to its fixtures, stock or business by reason of such repairs and City shall pay to Landlord upon demand, as additional rent hereunder the cost of such repairs, plus interest at the rate of ten percent (10Z) per annum, from the date of payment by Landlord until repaid by City. At the expiration of this Lease, City shall surrender the premises in good condition, reasonable wear and tear and loss by fire or any other casualty covered by Landlord's insurance policy only excepted. 5.3 Landlord shall be responsible for and have the duty to maintain, repair and replace the roof and exterior walls of the demised pre- mises and all heating and air conditioning equipment, circuitry, and support systems installed in and serving the demised premises; provided, however Landlord's obligation to so maintain, repair or replace shall not apply to any condition resulting from a substan- tial increase in electrical loads or electrical equipment. 5.4 City shall not make any alterations, additions or improvements to the demised premises without prior written consent to the Landlord, except for installation of unattached, moveable trade fixtures, which may be installed without drilling, cutting or otherwise de- facing the premises. All fixtures installed by City shall be new or completely reconditioned. All alterations, additions improve- ments and fixtures, other than non-attached, movable trade fixtures, -5- C which may be or may have been made or installed by either party hereto upon the demised premsies shall remain upon and be surren- dered with the premises and become part of the property of the Landlord at the termination of this Lease, unless Landlord requests their removal in which event, City shall remove the same and restore the premises to their original condition at City's expense. Any linoleum or other floor covering of similar character, which may be cemented or otherwise adhesively affixed to the floor of the demised premises, shall become the property of Landlord, all without credit or compensation to City. 5.5 All construction work done by City within the demised premises shall be performed in a good and workmanlike manner, in compliance with all governmental requirements. All costs of such work shall be borne by the City and shall be paid promptly so as to prevent the assertion of any liens for labor or materials. City agrees to indemnify Landlord and hold Landlord harmless against any loss, liability or damage resulting from such work, and Tenant shall, if requested by Landlord, furnish security satisfactory to Land- lord, against any such loss, liability or damage. Whenever City proposes to do any construction work within the demised premises, it shall first furnish the Landlord plans and specifications in such detail as Landlord may request, covering all such work. Such plans and specifications shall comply with such requirements as Landlord may from time to time prescribe. In no event shall any construction work be commenced within the demised premises without Landlord's written approval of such plans or specifications. Landlord, or Landlord's authorized representative, shall have the right to enter upon the demised premises at any time for the purpose of inspecting the same, making repairs or additions to the demised premises, making repairs, alterations or additions to adjacent premises or showing the demised premises to prospective purchasers, lessees or lenders. 5.6 City shall be responsible for minor repairs and adjustments to the Weber Building elevator and shall maintain an elevator main- tenance service contract to include said elevator. Landlord shall be responsible for major repairs to said elevator, including but not limited to the replacement of electric motors, cables, and pulleys. Landlord shall perform all maintenance or repair work on the elevator which is required to be done as a condition prece- dent to the issuance to the City of an elevator maintenance service contract. ARTICLE VI UTILITIES 6.1 Landlord agrees to cause to be provided and maintained the necessary mains, conduits and other facilities necessary to supply water, gas, electricity, telephone service and sewage service to the demised premises, excluding electrical wiring for special equipment, such as, but not limited to, Data Processing equipment. 6.2 City shall pay all utilities for the demised premises, effective June 1, 1981. ARTICLE VII INDEMNITY 7.1 Landlord shall not be liable to City or to Tenant's employees, agents or visitors or to any other person, whomsoever, for any injury to person or damage to property, on or about the demised premises, or in the common areas caused by the negligence or misconduct of Tenant, its employees, invitees, licensees and concessionaires, or for any other person entering into the Weber Building, under the express or implied invitation of Tenant, or -6- other tenants of the Weber Building, or arising out of the use of the demised premises by Tenant and the conduct of its business therein or arising out of any breach or default by Tenant in the performance of its obligations hereunder; and Tenant hereby agrees to indemnify Landlord and hold them harmless from any loss, expense or claims arising out of such damage or injury. 7.2 Landlord and Landlord's agents and employees shall not be liable to Tenant for any injury to person or damage to property sustained by Tenant or any person claiming through Tenant resulting from any accident or occurrence in the demised premises or any other portions of the Weber Building, including but not limited to injury or damage caused by the demised premises or other portion of the Weber Building coming out of repair or by defect in or failure of equipment, pipes, wiring or broken glass or by the backing up of drains or by gas, water, steam, electricity, or oil leaking or escaping or flowing into the demised premises, (except where due to Landlord's willful failure to make repairs required to be made hereunder, after the expiration of a reasonable time after written notice to Landlord of the need for such repairs). 7.3 City shall indemnify and hold harmless the Landlord, as well as Landlord's assignor - R. W. Depuy, and the owners of the demised parking lot property - Pearl L. Garrett, R. J. Garrett and Mary Pearl Calbe, as Independent Co -Trustees of the Trust Estate created by the Will of J. E. Garrett, deceased, and Pearl L. Garret, indi- vidually, from and against any and all liability created by the negligence of the City, it agents, employees or invitees, arising out of the City's lease of the demised parking lot. ARTICLE VIII DAMAGE BY CASUALTY 8.1 Landlord without costs to Tenant, shall cause to be maintained upon the building, which is the subject of this lease, a policy of insurance for fire and extended coverage for not less than 80% of the full insurable value thereof. 8.2 Tenant shall give immediate written notice to Landlord of any damage caused to the demised premises by fire or other casualty. 8.3 In the event the demised premises shall be damaged or destroyed by fire or any other casualty covered by Landlord's insurance and Landlord does not elect to terminate this Lease as hereinafter pro- vided, Landlord shall proceed with reasonable diligence and at their sole cost and expense to rebuild and repair the demised premises, but Landlord shall not be obligated to expend for such rebuilding and repairing an amount in excess of the insurance proceeds recovered by Landlord as a result of such loss. If the building in which the demised premises are located shall (a) be destroyed or substantially damaged by casualty not covered by Landlord's insurance, or (b) be destroyed or rendered untenable to an extent in excess of 50% of the leased area by casualty covered by Landlord's insurance, then in either of such events, Landlord may elect to either terminate this Lease or proceed to rebuild and repair the demised premises. Land- lord shall give written notice to Tenant of such election within sixty (60) days after the occurrence of such casualty and if they elect to rebuild and repair, shall proceed to do so with reasonable diligence at their sole cost and expense. 8.4 Landlord's obligation to rebuild and repair under this Article VIII shall in any event be limited to restore in Landlord's work to substantially the condition with which the same existed prior to the casualty. 8.5 Tenant agrees that during the period of reconstruction or repair of the demised premises, it will continue its operation of its business within the demised premises to the extent practicable. -7- During the period from the occurrence of the casualty until Land- lord's repairs are substantially completed, the fixed annual rent shall be reduced proportionately on the basis of the fixed annual rental rate per square foot of area in the demised premises still useable by Tenant; however, there shall be no abatement or reduc- tion of additional rent or other charges provided herein. 8.6 In no event shall Landlord be liable to Tenant, its successors, customers, invitees, assigns or subrogees, or any person claiming under Tenant for any injury to persons, loss of life, damage to or loss of any property in or about the demised premises. All public liability and property damage insurance, fire and extended coverage insurance, and other insurance carried either by Landlord or Tenant, covering losses arising out of the destruction or damage to the de- mised premises or its contents or to other portions of the building or to Tenant's occupancy and to operation of the Tenant's business therein, shall provide for waiver of rights of subrogation against Landlord and Tenant on the part of the insurance carriers to the extent that same is permitted under the laws and regulations go- verning the writing of insurance within the State of Texas. Each party shall furnish the other with written acknowledgement of such waiver by their respective insurance carriers. ARTICLE IX EMINENT DOMAIN 9.1 In the event the fee simple estate comprising the demised pre- mises herein should be taken for any public or quasi -public use under any governmental law, ordinance, regulation or by right of eminent domain or by private purchase in lieu thereof, either party shall have the option of terminating the term of this Lease by notifying the other of its election to do so on or before six months after Tenant shall have received written notice from either Landlord or the authority taking or purchasing for such public or quasi -public use of the absolute decesion to take the floor area of the demised premises and upon such notice being given, the term of this Lease shall terminate and end on the date physical posses- sion is taken by the comdemning authority. 9.2 Except as expressly provided otherwise in Paragraph 9.1 above, any election to terminate this Lease following the taking for any public or quasi -public use under any governmental law, ordinance, regulation or by right of eminent domain or by private purchase in lieu thereof, shall be evidenced by written notice of termination delivered to the other party within thirty (30) days after the date on which physical possessions is taken for such public or quasi -public use. 9.3 In the event this Lease is not terminated following a partial termination, Landlord shall make all necessary repairs and alterations necessary to make the demised premises an archi- tectural whole, provided Landlord shall not be required to spend for such work an amount in excess of the amount received by Landlord as damages for the part of the demised premises taken. "Amount received by Landlord" shall mean that part of the work in condemnation (or the proceeds of a sale in lieu thereof), which is free and clear to Landlord of any collection by Mortgagees for the value of the diminished fee. 9.4 All compensation awarded for any taking (or the proceeds of a private sale in lieu thereof) whether for the whole or part of the demised premises shall be the sole property of Landlord, whether such sale is compensation for damages to Landlord's or Tenant's interest in the demised premises, and Tenant hereby assigns all its interest in such award to such Landlord, pro- -8- vided, however, that Landlord shall have no interest in any award made to Tenant for loss of business or for the taking of Tenant's fixtures or other property, within the demised premises as separate award for such items as made to Tenant. ARTICLE X ASSIGNMENT AND SUB -LETTING 10.1 Tenant shall not assign or in any manner transfer this Lease or any estate or any interest therein, or sublet the demised pre- mises or any part thereof, without the prior written consent of Landlord. Consent by Landlord to one or more assignments, or sub- letting shall not operate as a waiver of Landlord's right as to any subsequent assignments or sublettings. Notwithstanding any assignment or subletting, Tenant shall at all times remain fully responsible and liable for the payment of rent herein specified and compliance with all of its other obligations under this Lease. The term "sublet" shall be deemed to include the granting of licenses, concessions and any other rights of occupancy of any portion of the demised premises. 10.2 The liability of Landlord to Tenant for any default by Landlord under the terms of this Lease shall at all times be limited to the proceeds of sale on execution of the interest of the Landlord in the Weber Building and Landlord shall not be personally liable for any deficiency. In the event of the transfer and assignment by Landlord of their interest in this Lease and in the Building containing the demised premises, Landlord shall thereby be released from any responsibility hereunder and Tenant agrees to look solely to such successor in interest of the Landlord for performance of such obligations. 10.3 Tenant shall not mortgage, pledge or otherwise encumber its interest in this Lease or in the demised premises, nor may such interest be transferred by operation of law. ARTICLE XI TAXES 11.1 Tenant shall be liable for all taxes levied against personal property and trade fixtures placed by Tenant in the demised premises. If any such taxes upon which Tenant is liable is levied against Landlord or Landlord's property and if the Landlord elects to pay the same or if the assessed value of the Landlord's property is increased by inclusion of personal property and trade fixtures placed by Tenant in the demised premises and Landlord elects to pay the taxes based on such increase, Tenant shall pay to Landlord upon demand, that part of such taxes for which Tenant is primarily liable hereunder. ARTICLE XII DEFAULT BY TENANT AND LANDLORD'S REMEDIES 12.1 The following events shall be deemed events of default by Tenant under this Lease: (1) Tenant shall fail to pay any installment of rent within ten (10) days after the same shall have become due. (2) Tenant shall fail to comply with any term, provision or covenant of this Lease other than the payment of rent and shall not cure such default within fifteen (15) days after written notice thereof to Tenant; (3) Tenant shall desert or vacate any substantial portion of the premises; and -9- (4) Tenant shall do or permit to be done anything which creates a lien upon the demised premises. Upon the occurrence of any such events of default, Landlord shall have the option to pursue any one or more of the following remedies without any notice or demand whatsoever: (a) Terminate this Lease, in which event, Tenant shall immediately surrender the demised premises to Landlord, and if Tenant fails to do so, Landlord may, by any lawful means and without prejudice to any other remedy which they may have for possession or arrears in rent, enter upon and take possession of the demised premises and expel or remove Tenant any any other per- son who may be occupying said premises or any part thereof; with- out being liable for prosecution or any claims for damages there- for; and Tenant agrees to pay to Landlord, on demand, the amount of all loss and damage which Landlord may suffer by reason of such termination, whether through inability to relet the premises on satisfactory terms or otherwise. (b) Enter upon and take possession of the demised premises and expel or remove Tenant, and any other person who may be occupying said premises or any part thereof, without being liable for prosecution or any claims for damages therefor, and, if Land- lord so elects, relet the premises on such terms as Landlord may deem advisable and receive the rent therefor; and Tenant agrees to pay to Landlord on demand, any deficiency that might arise by reason of such reletting. (c) Enter upon the demised premises and without being liable for prosecution or any claims for damages therefor, and do whatever Tenant is obligated to do under the terms of this Lease; and Tenant agrees to reimburse Landlord on demand for any expenses which Landlord may incur and thus effect compliance with Tenant's obligations under this Lease, and Tenant further agrees that Landlord shall not be liable for any damages resulting to the Tenant from such action, whether caused by the negligence of Landlord or otherwise. Pursuit of any of the foregoing remedies shall not preclude pur- suit of any of the other remedies herein provided or any other re- medies provided by law, nor shall pursuit of any remedy herein provided constitute a forfeiture or waiver of any rent due to Landlord hereunder or of any damages occurring to Landlord by reason of the violation of any terms, provisions and covenants herein contained. Forebearance by Landlord to enforce one or more of the remedies herein provided upon event of default shall not be deemed or construed to constitute a waiver of such default. In determining the amount of loss or damage which Landlord may suffer by reason of termination of this Lease or the deficiency arising by reason of any reletting of the demised premises by Landlord as above provided, allowance shall be made for the ex- pense of repossession and any repairs or remodeling undertaken by Landlord following repossession. 12.2 If, on account of any breach or default by Tenant of Tenant's obligations hereunder, it shall become necessary for Landlord to employ an attorney to enforce or defend any of the Landlord's rights or remedies hereunder, Tenant agrees to pay any reasonable attorneys' fees incurred by Landlord in such connection. -10- ARTICLE XIII HOLDING OVER In the event the Tenant remains in possession of the demised premises at the end of the term of this Lease, (ii) upon failure to renew'this lease as provided in Article II, Paragraph 2.2 or (iii) after City's serving notice of cancellation or termination of this lease and the required time for such notice has expired, as provided in Article II, Paragraph 2.2 hereof, it shall be deemed to be occupying said premises as a tenant from month to month at a rental equal to 1.5 times the then current rental herein provided and otherwise subject to all con- ditions, provisions, obligation of this Lease insofar as same are applicable on a month to month tenancy period. Except that the foregoing provision for a month to month rental equal to 1.5 times the then current monthly rental shall not become effective for thirty (30) days following written notification by the City that causes beyond the control of the City requires a thirty (30) day extension of the date on which the City will vacate the demised premises. (1) ARTICLE XIV NOTICES Whenever any notices are required or permitted hereunder, such notices shall be in writing. Any notice or document required or permitted to be delivered hereunder shall be deemed to be delivered whether actually received or not, when deposited at a point in the State of Texas in the United State Mail, postage pre- paid, certified mail, return receipt requested, addressed to the parties hereto at the respective addresses set out in Article I above, or at such other addresses as they may have theretofore specified by written notice delivered in accordance herewith. ARTICLE XV MISCELLANEOUS 15.1 The captions used in this Lease are for convenience only and do not in any way limit or amplify the terms or provisions hereof. 15.2 One or more waivers of any covenant, term or condition of this Lease, by either party, shall not be construed as a waiver of the subsequent breach of the same term or condition. The con- sidered approval by either party to or of any act by the other party requiring such consent or approval shall not be deemed to waive or render unnecessary consent to or approval of any subsequent similar act. 15.3 Whenever a period of time is herein prescribed for action to be taken by Landlord, Landlord shall not be liable or responsible for and there shall be excluded from the computation of any such periods of time any delays due to strikes, riots, acts of God, shortages of labor or materials, war, government loss, regulations, or restrictions or any other causes of any kind whatsoever which are beyond the reasonable control of Landlord. At any time when -11- there is outstanding a mortgage, deed of trust, or similar se- curity instrument covering Landlord's interest in the demised premises, or the Weber Building, Tenant may not exercise any remedies for default by Landlord hereunder, unless and until the holder of the indebtedness secured by such mortgage, deed of trust, or similar security instrument shall have received written notice of such default and a reasonable time for curing such de- fault shall thereafter have elapsed. Landlord, upon receiving any written notice of default from City, shall forthwith provide the City with the names and addresses of all such holders of such indebtedness. 15.4 This Lease shall be construed in accordance with the laws of the State of Texas and all obligations of Landlord and Tenant under the terms of this Lease shall be payable and performable in Nueces County, Texas. 15.5 Landlord hereby covenants and agrees that if Tenant shall per- form all of the covenants and agreements herein required to be performed on the part of the Tenant, Tenant shall, subject to the terms of this Lease, at all times during the continuance of this Lease, have the peaceful and quiet enjoyment and pos- session of the demised premises. 15.6 This Lease contains the entire agreement between the parties and no agreement shall be effective to change, modify or terminate this Lease in whole or in part, unless such agreement is in writing and duly signed by the party against whom enforcement of such change, modification or termination is sought. 15.7 Tenant agrees that it will from time to time upon request by Landlord, execute and deliver to Landlord a statement in re- cordable form, certifying that this Lease is unmodified and in full force and effect, (or if there has been a modification, that the same is in full force and effect as so modified) and further, stating the dates to which rent and other charges payable under this Lease have been paid. 15.8 Should any provision of this Lease be held invalid or unenforce- able, the validity and enforceability of all remaining provisions of this Lease shall not be affected thereby. 15.9 The terms, provisions and covenants contained in this Lease shall apply and inure to the benefit of, and be binding upon, the parties hereto, their respective heirs, successors in in- terest and legal representatives, except as otherwise herein expressly provided. IN WITNESS WHEREOF, the parties hereto have herein set their hands and seals the day and year set forth in Paragraph 1.1 of Article I of the date of this Lease. Norman M. Pinson M. Catherine Pinson -12- ATTEST: CITY OF CORPUS CHRISTI By: City! 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, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed, and in the capacity therein stated and as the act and deed of said City of Corpus Christi. GIVEN UNDER MY HAND AND SEAL OF OFFICE on this the day of , A.D. 1981. -14- Notary Public, State of Texas My commission expires: Corpus Christi, xas 23 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, Council Members Respectfully, MAYOR THE TY 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 16553