HomeMy WebLinkAbout020717 ORD - 07/18/1989AN ORDINANCE
AUTHORIZING THE EXECUTION OF A CONTRACT TO LEASE AND A
LONG-TERM LEASE FOR TWENTY (20) YEARS FOR LOTS 3, 4, 7,
8, 9, 10, 11, AND 12, BEACH ADDITION, CITY OF CORPUS
CHRISTI, NUECES COUNTY, TEXAS, TO THE CREATIVE ARTS
CENTER, INC., AND APPROPRIATING $125,000 FROM ECONOMIC
DEVELOPMENT TRUST FUND (243.54).
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS
CHRISTI, TEXAS:
SECTION 1. That the City Manager is hereby authorized to
execute a Contract for Lease and Lease Agreement for twenty (20)
years for Lots 3, 4, 7, 8, 9, 10, 11, and 12, Beach Addition,
City of Corpus Christi, Nueces County, Texas, to the Creative
Arts Center, Inc., all as more fully set forth in the Contract
for Lease and Lease Agreement attached hereto and made a part
hereof, marked Exhibit 1.
SECTION 2. There is hereby appropriated $125,000 from the
Economic Development Trust Fund (243.54).
/AGREEMNT/603JB087.AGR/dv
20717
CONTRACT FOR LEASE
THE STATE OF TEXAS {
{
COUNTY OF NUECES
WHEREAS, the CITY OF CORPUS CHRISTI, TEXAS (the "City") is
the owner of that certain real property located in Corpus Christi,
Texas and more particularly described on attached Exhibit I (the
"Property") to the Lease Agreement attached as Exhibit A (the
"Lease Agreement"); and
WHEREAS, the Property is located across Mesquite Street from
certain property now leased by the CREATIVE ARTS CENTER, INC., a
Texas non-profit corporation (the "CAC"), in Heritage Park and the
City would like for the CAC to lease the Property and to construct
a building and other improvements (the "Improvements") on the
Property to expand the programs and activities of the CAC; and
WHEREAS, the City has agreed to provide the CAC with $125,000
from the Economic Development Trust Fund (the "Construction
Grant") to provide partial funding for the construction of the
Improvements; and
WHEREAS, the CAC has agreed to begin fundraising activities
to raise additional funds which will be needed to construct the
Improvements; and
WHEREAS, the City and the CAC desire to enter into this
agreement to evidence the agreement of the City and the CAC to
enter into the Lease Agreement;
In consideration of the foregoing and the mutual promises
herein contained and other good and valuable consideration the
receipt and sufficiency of which is hereby acknowledged, the City
and the CAC agree as follows:
1. The CAC agrees to begin planning for construction of the
improvements and necessary fundraising to finance the
construction of the improvements.
2. If requested by the CAC at any time prior to April 30,
1992, the City agrees to execute and deliver to the CAC a lease
agreement in the form of the attached Lease Agreement. Upon
receipt of the Lease Agreement executed by the City, the CAC
agrees to execute and return to the City a fully executed copy of
the Lease Agreement.
WITNESS THE HANDS of the duly authorized officers of the
parties hereto, this day of , 1989.
ATTEST: CITY OF CORPUS CHRISTI
By: By:
City Secretary City Manager
APPROVED:
10 day of Jil71 (q$°
By:
A
stant City
torney
ATTEST: CREATIVE ARTS CENTER, INC.
By: By:
Secretary President
STATE OF TEXAS )
COUNTY OF NUECES )
This instrument was acknowledged before me on the day of
, 19 , by , City Manager
of Corpus Christi, Texas.
Notary Public, State of Texas
Typed or Printed Name of Notary
My Commission Expires:
STATE OF TEXAS )
COUNTY OF NUECES )
This instrument was acknowledged before me on the day of
, 19, by , President,
Creative Arts Center, Inc.
Notary Public, State of Texas
Typed or Printed Name of Notary
My Commission Expires:
EXHIBIT A
LEASE AGREEMENT
THE STATE OF TEXAS §
COUNTY OF NUECES §
WHEREAS, the CITY OF CORPUS CHRISTI, TEXAS (the "City")
is the owner of that certain real property located in Corpus
Christi, Texas and more particularly described on attached
Exhibit I (the "Property"); and
WHEREAS, the Property is located across Mesquite Street
from certain property now leased by the CREATIVE ARTS CENTER,
INC., a Texas non-profit corporation (the "Lessee"), in Heritage
Park and the City would like for the Lessee to lease the Property
and to construct a building and other improvements (the
"Improvements") on the Property to expand the programs and
activities of the Lessee; and
WHEREAS, the City has agreed to provide Lessee with
$125,000 from the Economic Development Trust Fund (the
"Construction Grant") to provide partial funding for the
construction of the Improvements; and
WHEREAS, Lessee desires to lease the Property and to
construct the Improvements;
In consideration of the foregoing and the mutual
promises herein contained, the City and Lessee agree as follows:
I.
The City does hereby lease, let, and demise to Lessee
the Property, together with all improvements located thereon.
/AGREEMNT/603JB087.AGR/dv 1
II.
Lessee shall construct a building of approximately
10,000 square feet and related facilities at an estimated total
cost of approximately $600,000.00 (hereinafter the
"Improvements") suitable for carrying out the purposes recited in
paragraph IV.
Lessee agrees to use its best efforts to begin
construction of the Improvements within 36 months of August 1,
1989. In the event that Lessee does not begin construction
within 36 months of August 1, 1989, the City's sole remedy shall
be to terminate this Lease Agreement. The plans and
specifications for the Improvements, site improvements, parking,
and landscaping and any changes thereto must be approved by the
City prior to the start of construction thereof, and shall be
consistent aesthetically and in quality of construction with
other properties in the Bayfront Arts and Sciences Park and be in
conformance with all City codes. Lessee shall consult with and
obtain approval of all landscaping from the Director of Parks and
Recreation. Competitive bidding shall be conducted as if the
Improvements were to be constructed by City, and final approval
of a bid must be made by the City Council. Local vendors and
contractors shall be utilized to the greatest extent possible.
The successful bidder to whom the contract is awarded must
execute a good and sufficient bond. The bond must be in the full
amount of the contract price, conditioned that the contractor
will faithfully perform the contract, and executed in accordance
with Article 5160, Revised Statutes, by a surety company
/AGREEI+NT/603JB087.AGR/dv 2
authorized to do business in the State of Texas. Construction
shall be completed and operation of facilities commenced within
12 months from commencement of construction.
The Lessee shall have sole and full responsibility for
preparing the plans, advertising for bids, supervising
construction and accepting the Improvements when completed.
The City grant of $125,000 shall be paid upon Lessee's
execution and City's approval of a contract between Lessee and a
qualified contractor for construction of the Improvements in
accordance with the plans and specifications approved by City.
Said Construction Grant shall come solely from monies
specifically allocated and set aside for said purpose from City's
Economic Development Trust Fund, and City's obligation shall not
extend to tax revenues or revenues from any source other than
said allocation. Interest on said $125,000
and may be used by City at anytime.
Except for the Construction Grant
shall belong to City
to be provided by the
City, the cost of construction, landscaping and other site
improvements shall be borne entirely by the Lessee. It is
understood that the City does not assume and will not in any way
be responsible for any of the financial obligations incurred or
created by the Lessee in connection with the construction of the
Improvements. Notwithstanding the foregoing, the City agrees to
grade and clear the Leased Premises, at the request of the
Lessee, after the plans and specifications for the Improvements
have been approved by the City. Lessee agrees to save and hold
/AGREEMNT/603JB087.AGR/dv 3
the City harmless from any and all charges, claims or liability
of any nature whatsoever as provided below.
Any building, fixture, or appurtenance placed on the
Property shall, except as provided elsewhere herein, become the
property of City, upon expiration or termination of this Lease
Agreement.
The term of this lease shall begin on the date of this
Lease Agreement and continue for twenty (20) continuous years
after the date of completion of construction of the Improvements,
subject to the provisions concerning termination as stated
herein. Upon completion of construction of the Improvements (as
determined by the reasonable judgment of Lessee), Lessee shall
send a written notice to the City informing the City of
completion; if the City does not object in writing within sixty
(60) days to Lessee's determination of completion, the completion
of construction shall be deemed to have occurred as determined by
Lessee. If the City objects, the date of completion of
construction shall be the date on which the Lessee has cured the
City's reasonable objections and a certificate of occupancy has
been issued by the City.
/AGREEMNT/603JB037.AGR/dv 4
IV.
Lessee shall operate the Improvements and the Leased
Premises exclusively for the following purposes, and uses
incidental thereto: advancement of knowledge, appreciation and
enjoyment of the arts including but not limited to programs,
recitals, exhibits, performances, promotions, classes, training,
and education in music, dance, theater, painting, and sculpture.
Such activities shall be conducted on a regular, continuous basis
at a level at least equal to that presently being maintained by
Lessee, and facilities constructed on the Leased Premises shall
be operated during regular, reasonable business hours with the
understanding that the City wishes to have as much activity in
the area as possible throughout the week.
V.
It is understood that Lessee will be responsible for
furnishing and equipping the building and that City has no
obligation to furnish any equipment or furnishings for the
Lessee. A11 personal property furnished by Lessee or donated by
others in behalf of Lessee will remain the property of Lessee
unless specifically donated to City.
/AGREEMNT/603JB087.AGR/dv 5
VI.
The City will maintain the lawn and vegetation at its
own expense. Lessee will maintain, at its sole expense, the
exterior and interior of the building and any other improvements
on the Property, all fixtures connected therewith, all personal
property thereon, exterior walks and driveways, and all other
areas which the City has not agreed to maintain under this Lease
Agreement. Maintenance shall be of such quality as to maintain
the Property in a first-class condition, consistent and in
harmony with maintenance of improvements on properties leased by
the City to other tenants in the Bayfront Arts and Science Park.
Lessee shall not undertake exterior construction, remodeling or
redecorating beyond normal maintenance without prior written
consent of the City. No major interior construction shall be
undertaken without prior written consent of the City. Lessee
shall obtain, at its own expense, all building permits, all
utility services, garbage collection, janitorial services, and
similar services.
VII.
Lessee's activities will have priority on use of the
building; however, Lessee shall permit use of the building and
facility by the City and civic and community groups on a
reasonable time basis, if such use will not interfere with
previously scheduled activities of Lessee. Lessee shall have the
right to charge rental fees for the use of the facility and in
addition thereto, to charge actual out-of-pocket costs incurred
by Lessee through the use by others. Such rental fee and such
/AGREEMNT/603JB087.AGR/dv 6
additional operating costs shall be calculated and shown as
Exhibit "II" which shall be attached hereto, and will be
incorporated and made a part of this Lease Agreement. Exhibit
"II" will be reviewed by the City and Lessee annually to make any
reasonable changes agreed to by the City and Lessee.
Lessee may refuse the use of the facility to any
person, firm or corporation, for any event which is deemed to be
unsuitable by virtue of the limitations of the design and
outfitting of the facility or by virtue of failure to meet the
moral standards of the community, but Lessee shall promptly
report any such refusals made on this basis to the City.
Lessee agrees to keep and maintain, in a manner
acceptable to the City's Director of Finance, adequate books and
records showing all receipts and disbursements, which shall be
available for examination by the Director of Finance or his
designated representative at any time, and to provide the City
with an annual report including, but not limited to, a balance
sheet and either an income statement or receipts and
disbursements for the preceding year prepared by a certified
public accountant.
VIII.
Lessee shall have the right to provide concession
activities, including food and beverages. Lessee shall
prominently display a list of prices to be charged at each
location where concession items are sold, and such prices shall
not exceed prices charged for similar services under similar
/AGREENNT/603JB087.AGR/dv 7
conditions elsewhere in the City. Lessee shall offer concession
services to other users of the facility on the same basis and at
the same prices as for Lessee.
IX.
Lessee shall fully indemnify, save and hold harmless
the City, its officers, employees, and agents against any and all
liability, damage, loss, claims, demands and actions of any
nature whatsoever on account of personal injuries (including,
without limitation on the foregoing, premises defects, workers'
compensation and death claims), or property loss or damage of any
kind whatsoever, which arise out of or are in any manner
connected with, or are claimed to arise out of or be in any way
connected with, the performance by Lessee of its obligations
under this Lease Agreement or Lessee's use, operation or
occupancy of the Property. Lessee shall at its own expense
investigate all such claims and demands, attend to their
settlement or other disposition, defend all actions based thereon
and pay all charges of attorneys and all other costs and expenses
of any kind arising from any such liability, damage, loss,
claims, demands, and actions.
X.
Lessee agrees that in construction upon and operation
of the Leased Premises it will promptly comply with and fulfill
all ordinances, regulations and codes of Federal, State, County,
City and other governmental agencies applicable to the Property,
and all ordinances or regulations imposed by the City for the
correction, prevention and abatement of nuisances or code
/AGREEMNT/603JB087.AGR/dv 8
violations in or connected with the Property during the term of
this Lease Agreement, at Lessee's sole expense and cost.
XI.
Lessee shall not place, paint or otherwise affix any
signs at, or on or about the Property, or any part thereof,
except where approved in writing by the City. The City shall
have the right at any time to require Lessee to remove, paint or
repair the signs allowed. Should Lessee not remove, paint or
repair the said signs within thirty (30) days of demand therefor
in writing, the City may fulfill its demands and charge the
expense of same to Lessee. This paragraph does not apply to
temporary signs, in conformity with city codes, on the Property
for two weeks or less.
XII.
No assent, express or implied, by the City to any
breach of any of Lessee's covenants, agreements, conditions or
terms hereof shall be deemed or taken to be a waiver of any
succeeding breach of any covenant, agreement, condition or term
hereof.
XIII.
The City reserves the right to enter the Property at
any reasonable time during the existence of this Lease Agreement
for the purpose of inspecting the same in order to determine
whether the terms of this Lease Agreement are being observed and
carried out, including but not limited to, both exterior and
interior maintenance.
/AGREENNT/6033B087.AGR/dv 9
XIV.
Lessee shall acquire and maintain the following
insurance coverages during the term of this Lease Agreement:
(a) liability insurance covering all activities to be
conducted on the Leased Premises, with the city as
an additional insured, noncancellable except upon
thirty (30) days written notice to the City, in
such amount and with such terms and coverages as
required by the City Manager, or his designee;
(b) workers' compensation insurance on all its
employees as required by the City Manager, or his
designee;
(c) property insurance in the amount of the full
replacement value of all buildings and
improvements, insuring against all risks as
required by the City Manager, or his designee,
which shall be noncancellable except upon thirty
(30) days written notice to City, shall name City
as an additional insured, and shall contain such
terms as required by the City Manager, or his
designee.
In addition, Lessee shall require any contractor for construction
of any buildings or improvements under this Lease Agreement to
carry insurance coverages throughout the construction period with
terms and amounts as required by the City Manager. The amount
and terms of coverages required in this paragraph shall be
/AGREEMNT/603JB087.AGR/dv 10
substantially similar to those required by the City for similar
operations, and shall be re-evaluated on an annual basis.
Lessee shall provide City with certificates of
insurance reflecting all the above coverages, and shall, upon
request by City, promptly provide City with copies of all such
insurance policies.
XV.
Lessee shall not assign this Lease Agreement nor sublet
the Property or any part thereof without the prior written
consent of the City. The consent of the City shall not be
unreasonably withheld.
XVI.
Upon thirty days prior written notice to Lessee, the
City may, at its option, in addition to any other remedy or right
hereunder or by law, terminate this Lease Agreement upon
occurrence of any of the following conditions ("Defaults"),
provided that Lessee has not cured the Default prior to
termination:
(1) Failure to operate the Property for the purposes
set forth in Paragraph IV except during periods
necessary for repairs or renovation approved by the
City in writing or except as otherwise contemplated by
this Lease Agreement.
(2) Failure to abate any nuisance specified in writing
by the City within a reasonable time specified in
writing by the City.
/AGREENLNT/60333087.AGR/dv 11
(3) Lessee's assignment of this Lease Agreement or
subletting of the Leased Premises, or attempted
assignment or subletting, without prior written consent
of City.
(4) Dissolution of Lessee as a non-profit corporation.
(5) Failure to have in effect policies of contractor's
insurance, liability insurance, workers'
compensation insurance and property insurance as
required by the City's Director of Risk Management
(or successor official).
(6) Intentional, knowing or fraudulent failure to
maintain strict and accurate books of account, or
to furnish said books of account to the City for
inspection.
(7) Abandonment of the Property.
(8) Failure of Lessee to correct any other breach
in the performance or observance of any other
covenant or condition of this Lease Agreement.
Upon termination of this Lease Agreement as hereinabove provided,
or pursuant to statute, or by summary proceedings or otherwise,
the City may enter forthwith and resume possession either by
summary proceedings, or by action at law or in equity or by force
or otherwise, as the City may determine, without being liable in
trespass or for any damages. The foregoing rights and remedies
given to the City are, and shall be deemed to be, cumulative of
any other rights of the City under law, and the exercise of one
shall not be deemed to be an election, and the failure of the
/AGREEMNT/603JB087.AGR/dv 12
City at any time to exercise any right or remedy shall not be
deemed to operate as a waiver of its right to exercise such right
or remedy at any other or future time.
IVII.
Upon expiration of this Lease Agreement, or upon
termination thereof for any reason, all buildings, improvements
and fixtures on the Leased Premises shall become property of the
City. Provided, however, that should this Lease Agreement be
terminated prior to acceptance by the City of completion of
construction under paragraph II, said buildings, improvements and
fixtures shall become property of the City only at its option.
If the City should, in such event, decide to decline all or part
of said Improvements, it shall notify Lessee in writing within
sixty (60) days of its receipt of such notice. If Lessee shall
fail to remove such Improvements within that time period, the
City may remove and dispose of such Improvements, and Lessee
shall be liable to the City for all expenses incurred thereby.
XVIII.
it is specifically agreed and understood that the
parties intend and do hereby create a landlord/tenant
relationship, and this Lease Agreement shall be construed
conclusively in favor of that relationship. Nothing herein
contained shall be deemed or construed by the parties hereto, nor
by any third party, as creating the relationship of principal and
agent or of partnership or of joint venture between the parties
hereto, it being understood and agreed that no provision
contained herein, nor any of the acts of the parties hereto,
/AGREENNT/603JB087.AGR/dv 13
shall be deemed to create any relationship between the parties
herein other than that of Landlord and Tenant.
XIX.
No changes or modifications to this Lease Agreement
shall be made, nor any provision waived, unless in writing signed
by a person authorized to sign agreements on behalf of each
party. This Lease Agreement supersedes all previous agreements
between the parties.
XX.
Nothing contained within this lease agreement shall be
construed to change or alter the terms of the present lease held
by Lessee on that certain property known as the Lichenstein House
within Heritage Park. Lessee intends to utilize the new facility
proposed under this lease in conjunction with their present lease
on the Lichenstein House.
XXI.
Lessee agrees to pay the costs of newspaper publication
of this Agreement and related ordinance as required by the City
Charter.
XXII.
Lessee shall have the right to terminate this Lease
Agreement by giving the City thirty (30) days prior written
notice of the date of termination. Provided, however, (i) if the
construction of the Improvements has been commenced and (ii) if
the construction of the Improvements has not been completed or
the Improvements have been damaged or destroyed, Lessee shall
only have the right to terminate this Lease Agreement as provided
/AGREEMNT/6033B087.AGR/dv 14
above if Lessee reimburses the City for the portion of the
Construction Grant which has been paid to Lessee and, in
addition, restores the property to its pre -lease condition or, in
the alternative, completes the construction of the Improvements
in accordance with the approved plans and specifications.
WITNESS THE HANDS of the duly authorized officers of the parties
hereto, this day of , 19
ATTEST:
CITY OF CORPUS CHRISTI
By: By:
City Secretary City Manager
APPROVED:
10
By:
day
of7 0111 1 ci i l
9ristant Cityttorney
ATTEST:
By:
CREATIVE ARTS CENTER, INC.
By:
Secretary President
THE STATE OF TEXAS §
COUNTY OF NUECES §
This instrument was acknowledged before me on the
day of , 19 , by , City
Manager of Corpus Christi, Texas.
Notary Public, State of Texas
Type or Print Name of Notary
My Commission Expires:
/AGREEMNT/603JB087.AGR/dv 15
THE STATE OF TEXAS §
COUNTY OF NUECES §
This instrument was acknowledged before me on the
day of , 19 , by
President, Creative Arts Center, Inc.
/AGREEMNT/603JB087.AGR/dv 16
Notary Public, State of Texas
Type or Print Name of Notary
My Commission Expires:
Exhibit I
[Property Description]
Exhibit I
Lots 3, 4, 7, 8, 9, 10, 11, and 12, Beach Portion of the City of Corpus
Christi, Nueces County, Texas, as shown by map recorded in Volume A,
Pa4e 3, Map Records, Nueces County, Texas.
1
Exhibit II
[To be attached within thirty (30) days following
completion of construction of the Improvements)
CIS): OF CORPUS CHRISTI, TEXAS
C1111(tIFICATION OF FUNDS
(c. Ity Charter Article E/ Section 21)
425, 000
Cart::fy to the City (1.1otaoil that $ /1---0fra # the anoint Leath led ft )JT
toe t:ontract agreement, obi rjation or expenditures conteffplated to the
inn focegoino tattittantx) s in the freasury of the City of Corpus Ctuttsti Lo the
tatc :
o) AdAs., itXtta-t,
Lttt&tQ
WfIlir'CF- "Trls garni) ,2? 4. 3, 517thinahoui saltdprepip
AA) du,s• 414.14,,:, Azar Paid
and such money is at)) attyprip.ttatted aity
That the foregoing ordinance was read for the first time and passed to its
second reading on this the day of 19 by the
following vote:
Betty N. Turner Edward A. Martin
David Berlanga, Sr. Joe McComb
Leo Guerrero Clif Moss
Tom Hunt Mary Rhodes
Frank Schwing, Jr.
That the foregoing ordinance was read for the second time and passed to its
third reading on this the day of , 19 , by the
following vote:
Betty N. Turner Edward A. Martin
David Berlanga, Sr. Joe McComb
Leo Guerrero Clif Moss
Tom Hunt Mary Rhodes
Frank Schwing, Jr.
That the foregoing ordinance was read for the third time and passed finally on
this the /a day of ! , 19 , by the following vote:
Betty N. Turner
David Berlanga, Sr.
Leo Guerrero
Tom Hunt
PASSED AND APPROVED, this the
ATTE Ty
City Secretary
APPROVED:
In DAY OF 3w it 111:
HAL GEORGE, CITY ATTORNEY
By
As
01•-
tant City Att7Fney
99.044.01
Edward A. Martin
Joe McComb
Clif Moss
Diary Rhodes
Frank Schwing, Jr.
day of L
/
er
MAYOR
, 19
THE CITY OF CORPUS CHRISTI, TEXAS
2071'7.
That the foregoing ordinance was read for the first time and passed to its
second reading on this the / day of - r; , 19 , by the
following vote:
Betty N. Turner art � Edward A. Martin
David Berlanga, Sr. �( ( j . Joe McComb
Leo Guerrero l,t (�ti r( Clif Moss
Tom Hunt l� Mary Rhodes
Frank Schwing, Jr.
That the foregoing ordinance was read for the second time and passed to its
third reading on this the ( day of J ,; ;; , 19 %, by the
following vote:
Betty N. Turner
David Berlanga, Sr.
Leo Guerrero
Tom Hunt 1 .
Edward A. Martin
Joe McComb
Clif Moss
Mary Rhodes
Frank Schwing, Jr.
i1i'%) ;1
That the •regoing ordinance was read for the third time and passed finally on
this the ' day of � i, 19 ;1 (, by the following vote:
r
Betty N. Turn:r
David Berlanga, Sr.
Leo Guerrero
Tom Hunt
i,
J.
PASSED AND APPROVED, thjs the
ATTEST:
City ISecretary
APPROVED:
DAY OF
HAL GEORGE, CITY ATTORNEY
, 1985:
99.044.01
Edward A. Ma tin
Joe McComb
Clif Moss
Mary Rhodes
Frank Schwing, Jr.
day of
4::
'19 U.
MAYOR
20717
THE CITY OF CORPUS CHRISTI, TEXAS
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