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HomeMy WebLinkAbout020833 ORD - 11/21/1989AN ORDINANCE AUTHORIZING THE EXECUTION OF AN AMENDMENT TO THE LEASE WITH RAY HUNLEY FOR A BOAT REPAIR FACILITY ON THE L -HEAD TO ASSIGN THE LEASE TO MARINE AND INDUSTRIAL SUPPLIES, INC., RESTRUCTURE THE SCHEDULE FOR RENTAL PAYMENTS, AND AUTHORIZE ADDITIONAL USES. 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 an amendment to the lease with Ray Hunley for a boat repair facility on the L -Head at Shoreline Boulevard to assign the lease to Marine and Industrial Supplies, Inc., restructure the schedule for rental payments, and authorize additional uses, all as more fully set forth in the lease amendment, a substantial copy of which is attached hereto and made a part hereof, marked Exhibit A. \ORD-RES\89030 MICROFILMED STATE OF TEXAS COUNTY OF NUECES x X Z LEASE AMENDMENT KNOW ALL BY THESE PRESENTS This Lease Amendment is agreed by and between the City of Corpus Christi, Texas (hereinafter "City" or "Lessor") and Marine & Industrial Supplies, Inc. (Hereinafter "Marine" or "Lessee"). The purpose of this Lease Amendment is to amend the Lease Agree- ment (hereinafter the "Lease") dated March 11, 1982 and author- ized by the City Council in City Ordinance No. 16906 on March 3, 1982, between City and Ray Hunley. City hereby consents to assignment of the Lease from Ray Hunley to Marine. City and Marine hereby agree that the Lease shall be amended as follows: 1. The following new paragraph I is substituted for the present paragraph I in its entirety: A. Lessee shall pay to Lessor rentals equal to the sum total of the four categories of payments specified below: Category 1. Minimum Base Rental. (a) March 1, 1989, through February 28, 1990 - $1,500 monthly. (b) March 1, 1990 through February 28, 1991 $1,650 monthly. (c) March 1, 1991 through February 29, 1992 $1,850 monthly. Category 2. Gross receipts from boat servicing opera- tions. Lessee shall pay to Lessor nine percent (9%) of gross receipts from charges connected with servicing of boats, whether parts, labor, storage, or other, exceed- ing the following amounts: (a) March 1, $159,135 (b) March 1, $163,909 (c) March 1, $168,826 1989 through February yearly. 1990 through February yearly. 1991 through February yearly. 28, 1990 - 28, 1991 - 29, 1992 - Category 3. Gross receipts from wholesale and retail sales of boating -related goods. Lessee shall pay to Lessor three percent (3%) of gross receipts from wholesale and retail sales of boating -related goods. 89JB003.009.dv Category 4. Gross receipts from sale of boats on leased premises. Lessee shall pay to Lessor two percent (2%) of gross receipts from sales of boats on the leased premises, whether from boats owned by Marine or sold by Marine for others. B. Category 1 payments shall be delivered to the City by the tenth of each month. Category 2, 3, and 4 payments shall be delivered to the City by the tenth day of March and the tenth day of September for the periods September through February and March through August respectively. Category 2 September payments shall be based upon 50% of the annual minimum, and the March payment shall be adjusted as necessary to achieve payment of nine percent (9%) of annual gross receipts above the annual minimum. C. Lessee shall keep strict and accurate books of account of all receipts collected and accounts receivable from operations on the leased premises, segregating Category 2, Category 3, and Category 4. Each monthly base rental payment shall be accompanied by a certified statement of gross receipts so segregated and further itemized by individual dates of transactions. Such statements shall be formulated according to generally accepted accounting practices and in a form prescribed by the City's Director of Finance which form may be changed from time to time by said Director. All underlying documentation for Lessee's books of account and certified monthly statements, including cash register tapes, shall be preserved by Lessee for at least five years from creation of the book of account or monthly statement. Said books of account and underlying documentation shall be open for inspection by the City at all times. The City may terminate this Lease for failure to preserve such records or provide them to City upon request. D. The above-described method of rental calculation in effect for March 1, 1991, through February 29, 1992 shall remain in effect for the last five years of this Lease; provided, however, said rental shall be reviewed on or about March 1, 1992, and adjusted according to local economic conditions. If a rental payment agree- ment between the parties is not reached within 60 days after March 1, 1992, this lease shall be considered terminated. 2. The last sentence of paragraph II is deleted and the following substituted therefore: Use of the leased premises shall be strictly limited to the following: 893 003.009.dv (1) The primary use shall be servicing boats, including but not limited to inspections, repairs, maintenance, cleaning, scraping, painting, and emergency services. No other use permitted under this Lease shall be conducted so as to diminish Lessee's providing of full boat servicing facilities and operations. (2) Wholesale and retail sales of boating -related goods including but not limited to all manner of boat parts and marine accessories, clothing such as hats and windbreakers, sunscreen, sunglasses, nautical charts and books, and souvenirs such as postcards and T-shirts. Other items not inconsistent with the spirit of this provision may be approved by the Marina Super- intendent. (3) Sales of boats located in the Marina owned by Marine or owned by others and sold by Marine as agent. No other boat sales operations may be conducted or permitted on or from the leased premises. No more than six boats may be located on the leased premises for sales purpos- es, unless authorized in writing by the Marina Superin- tendent. Lessee has inspected and made its own determination as to the suitability of the leased premises for the above -stated purposes, and acknowledges that Lessor makes no warranty, express or implied, as to such suitability. 3. A new paragraph III (A) is added to the Lease which shall read as follows: Lessee shall have the right to remodel the present carpentry shop for the purpose of housing its wholesale and retail sales permitted in this Agreement. Such remodeling shall be substantially in accordance with the site plan set forth in Exhibit A. Final plans and specifications must be appoved by the City Manager before construction begins. Any deviation therefrom shall require written consent of the City Manager. In connection with the west side walkway and entryway depicted in Exhibit A, the leased premises is extended as shown on Exhibit A. Marine shall have sole respon- sibility for constructing and maintaining said walkway and entryway as well as maintaining the remainder of the leased premises in a condition safe for the public. 4. A new paragraph III (B) is added to the Lease which shall read as follows: The City shall repair the timber piers supporting the existing crane -way and roof structure in a manner to be determined by the City, such work to commence prior to the end of 1989. City shall bear the full cost there- of. 89JB003.009.dv 5. A new paragraph III (C) is added to the Lease which shall read as follows: Lessee shall have the right to convert the two finger piers at the east end of the leased premises to L- shaped piers substantially in accordance with the site plan attached hereto as Exhibit B. Final plans and specifications must be approved by the City Manager before construction begins. 6. The following sentence shall be added to paragraph V of the Lease: Specifications and location of any such sign must have written approval from the Marina Superintendent prior to installation. 7. The following shall be added to paragraph VIII of the Lease: Provided, however, consent is hereby granted to Marine to assign this lease to a newly created corporation in which Marine owns 81% of the equity. City shall be notified in writing prior to the assignment. This Amendment shall be effective on the sixty-first day after approval by the City Council on third reading. Executed in duplicate originals this day of , 1989. ATTEST: CITY OF CORPUS CHRISTI by Armando Chapa Juan Garza, City Manager City Secretary APPROVED HAL GEORGE, CITY ATTORNEY stant City orney DatN: Ott . , 1989 ATTEST: MARINE & INDUSTRIAL SUPPLIES, INC. W iam W. Didla e, Jr. Michael A. Ellsber Secretary President j.. 89JB003.009.dv REPAIR LERK IN URLL n FRCILITY PROPOSED :CURITY LIGHTING INTERIOR IMPROVEMENTS: •8000 NHI81S303d 1ki13N 3lBl00 HLI11 30H1d38 GNU 8000 .3dA1-30H8H0. 30SU1 DHILSIX3 3A0t138 Z O Z h W y Q U y J• ¢r. COOC 0 ▪ • J J p 0 Z O Z O CC CC 04 W J U W > LL + O 5 J • CIC• 0. m0 Z •r - ¢ 0 z Wz .+Z U ZZO:>LL 0 J Z W r 0 r O • 0 ▪ J Z Z X IL y L 2} W 0 0 W W00 0 0y 00 2000%003 r.. p 1 1-0.+ m 0m00r J Z Z V l W W OZZ Z 2• 3 Z Z D. (00N N.-... z U 0.00: L>>Z Z. X Z W O 0 W O IO W .-. D: r0y r W W 0: W •-.2y 20011_0W Y60 0.-. >> W 00 .4O OOo:n.o 0.0 J 0 cc 00000.' L d O W LL O=p K O!rp W CO m K v J Q 0. Q. CO d 0: • •+Nm ?V)CO [- JL J 0 CL r 0 W Q 0a.� 00 E STOREFRONT PLATE z 0 z 0: J .. y > 00 0 W N 0. 44 y J W s ED LANDING 0 N .z. m N M CO W y m W m .. „\ L V ON • 0 W m Z X •.• 0 W 0. J1- L W 4: 0 3 0 0 D— F— CC - 1-CC LL J O F— LU C Lu U 0 CLO 0C 0_ C -0 (R That the foregoing ordinance w s read for �rh��e first time and p ed to its second reading on this the J/ day of lJ c�pbQ✓ , 19 8-c , by the following vote: Betty N. Turner &— David Berlanga, Sr. Leo Guerrero Tom Hunt That the foregoing ordinance was read third reading on this the „i - day following vote: Edward A. Martin Joe McComb Clif Moss Mary Rhodes Frank Schwing, Jr. for ,the second time and p ,sled to its of , , , 19 / , by the Betty N. Turner / Edward A. Martin `JL David Berlanga, Sr. // Leo Guerrero Tom Hunt That the foregoing this the ,`J1 day Betty N. Turner David Berlanga, Sr. Leo Guerrero Tom Hunt PASSED AND APP ATTEST: City Secretary APPROVED: DAY OF Joe McComb Clif Moss Mary Rhodes Frank Schwing, Jr. /4 ordi once was read for t hird time and passed finally of `-1)11,l.F,fylk,(k11 , 19), by the following vote: Edward A. Martin Joe McComb Clif Moss Mary Rhodes Frank Schwing, Jr. ROVED, this the J( day of alt , 19 ll MAYOR ' THE CITY OF CORPUS CHRISTI, TEXAS HAL GEORGE, CITY ATTORNEY By , 19 Assistant City Attorney 99.044.01 on Ul 4 a El Li r`Clna! r+0 m 10 UJ ar Tal 7 rt z,�.. ISI a H 7r- !fl�. �.. CO u7 �n m -- rt m AA m m � D rt 9.1 m ' 0 G f .1 n al0 +, 1 0 rt- IP. a. 0_ l �7Y m m T m i0 m r- a T y i, .. a 7 7 T 1-.•n G 0 `< ar m IP.n 0 0N n la o'-0r7rr-1almm 7 1 U.. a 7 G .< ", 0 0 T 0 T m ICG -. 0 0 n z, N L F,. m-al,o3.m11-10 7 , n n 0 a rtlti7/c; t oI° a omc 0 H IP —a. �7IQ rt N# # y 1am m -....7m1�I oTt m 1 H c"•E a N 7 N L W e rt x n '7 Ym o rr ▪ h]G:r- .. co a._m0 0 a0a0-oN Z Fic n - r- rt `C a- G £ lc T a. 7.7 T -c: r 1 , n 0 7 n In r >i Iz r. Io 0, 2 m G£ Q —lc lc , m 0 D �' 7 - <0 N. 0.. 0 it 1 n 0 G 1jftS !Vs r H 71 I 12 77 m n a1 rt 17. 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