HomeMy WebLinkAbout021103 ORD - 03/12/1991AN ORDINANCE
AUTHORIZING THE EXECUTION OF A TEN YEAR LEASE
AGREEMENT WITH BILL R. WILHELMI AND BENJAMIN JOSEPH
HOLLAND FOR BLOCK 69, LOTS 5 AND 6, BEACH ADDITION, FOR AN
ARTIST STUDIO AND GALLERY; AND PROVIDING FOR PUBLICATION.
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 ten-year
lease agreement with Bill R. Wilhelmi and Benjamin Joseph Holland, for Block 69, Lots 5 and 6,
Beach Addition of the City of Corpus Christi, Nueces County, Texas, for an artist studio and
gallery, 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. Publication shall be made in the official publication of the City
Corpus Christi as required by the City Charter of the City of Corpus Christi.
ORD3:91020
021103
EXHIBIT A
LEASE AGREEMENT
THE STATE OF TEXAS §
COUNTY OF NUECES §
WHEREAS, the CITY OF CORPUS CHRISTI, TEXAS ("City") is
the owner of real property located at Beach Addition, Block 69,
Lots 5 and 6, together with all improvements thereon ("Proper-
ty"); and
WHEREAS, William Merle Wilhelmi and Benjamin Joseph
Holland, (the "Lessee") desires to lease the property, rehabili-
tate the existing improvements, and/or construct new improve-
ments.
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.
Lessee agrees to operate an artists' studio and gallery on the
Property including retail sales of art. Any other uses of the
property by Lessee shall be prohibited without prior written
approval of the City Manager or his designee.
II.
Lessee shall undertake rehabilitation of the existing
building (formerly known as the Richardson building) for use as
the Wilheini-Holland Gallery and W Studio. Lessee shall have the
right, but shall not be obligated, to construct additional
improvements on the Property.
Lessee agrees to use its best efforts to begin rehabil-
tation of the improvements and construction of new improvements
within 6 months of April 1, 1991, and complete such improvements
within an additional 6 months; however, Lessee may construct new
improvements any time during the lease term subject to the
provisions herein. Lessee shall use its best efforts to complete
the construction of any new improvements not later than April 1,
1992. The plans and specifications for the rehabilitation and/or
new construction of improvements, site improvements, parking,
irrigation system and landscaping and any changes thereto must be
approved by the City Manager 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 irrigation system
and landscaping improvements from the Director of parks and
Recreation. No time spent by the City in reviewing any proposed
plans or specifications from Lessee shall be considered in
determining whether, or to what extent, Lessee has met either the
six months or one year deadline.
Local vendors and contractors shall be utilized for all
rehabilitation or new construction to the greatest extent
possible. Construction shall be completed including the approved
irrigation system, and operation of facilities commenced within
6 months from commencement of construction. The insurance
provisions of paragraph XII of this Lease Agreement must be met
on the effective date of this Lease Agreement.
2
The Lessee shall have sole and full responsibility for
preparing the plans, advertising for bids, supervising construc-
tion and accepting the improvements when completed.
The cost of construction, rehabilitation, landscaping,
irrigation 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. Lessee agrees to save and
hold 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 Agreement shall begin sixty (60)
days after execution of this Lease Agreement and continue for ten
(10) years with one ten year option to renew, subject to the
provisions concerning termination as stated herein. Within
fourteen (14) months from the date of execution of this Lease
Agreement, Lessee shall be conducting a retail business on the
property which shall be open to the public during weekdays
excluding holidays and a minimum of eight (8) hours during
weekends.
IV.
The rental for the Property will be at the rate of $200
per month payable on or before the 5th of each month during the
3
initial ten (10) year term of the Lease Agreement. The rental
rate for the ten year option period, if so exercised, will be
negotiated between the Lessee and the City at the time that the
option is exercised.
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. All personal property furnished by or on behalf of
Lessee will remain the property of Lessee unless specifically
donated to City.
VI.
The City will maintain the lawn and vegetation at its
own expense, subject to annual budget allocation, with the
exception of any garden or extensive landscaping which will be
maintained at the sole expense of the Lessee. 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 improve-
ments on properties leased by the City to other tenants in the
Bayfront Arts and Science Park. Lessee shall not undertake
exterior construction, remodeling, redecorating, or signage
beyond normal maintenance without prior written consent of the
City. No major interior construction shall be undertaken without
4
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 during the
lease period.
VII.
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 connect-
ed with, or are claimed to arise out of or be in any way connect-
ed 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 disposi-
tion, 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.
VIII.
Lessee agrees that in construction upon and operation
of the Property 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 correc-
tion, prevention and abatement of nuisances or code violations in
5
or connected with the Property during the term of this Lease
Agreement, at Lessee's sole expense and cost.
IX
Lessee shall not place, paint or otherwise affix any
signs at, or on or about the Property, or any part thereof,
without prior written consent of 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.
X.
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.
XI.
The City reserves the right to enter the Property at
any reasonable time during business hours during the existence of
this Lease Agreement, after reasonable notice to Lessee, 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 mainte-
nance.
6
XII.
Lessee shall acquire and maintain the following insur-
ance coverages during the term of this Lease Agreement:
(a) liability insurance covering all activities to be
conducted on the Property, 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, and
such insurance amounts shall be reviewed annually
and may be revised if necessary;
(b) workers' compensation insurance on all its employ-
ees as required by state and federal law;
(c) property insurance in the amount of the full
replacement value of all buildings and improve-
ments, 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,
and such insurance amounts shall be reviewed
annually and may be revised if necessary. All
proceeds from any claim under this property
insurance shall be used to repair or replace the
building to same or better condition than existing
prior to the damage upon which any claim resulting
7
in proceeds is based, normal wear and tear
excepted.
In addition, Lessce shall require any contractor for
construction or rehabilitation of any buildings or improvements
under this Lease Agreement to carry insurance coverages through-
out 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 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 insur-
ance reflecting all the above coverages, and shall, upon request
by City, promptly provide City with copies of all such insurance
policies.
XIII.
Lessee shall not assign this Lease Agreement nor sublet
the Property or any part thereof without the prior written
consent of the City Manager. The consent of the City shall not
be unreasonably withheld.
XIV.
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 occur-
rence 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 I except during periods
8
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.
(3) Lessee's assignment of this Lease Agreement or
subletting of the Leased Premises, or attempted assign-
ment or subletting, without prior written consent of
City.
(4) Failure to have in effect policies of contractor's
insurance, liability insurance, workers' compensation
insurance and/or property insurance as required by the
City's Director of Risk Management (or successor
official).
(5) Failure to pay lease payments when due.
(6) Abandonment of the Property.
(7) 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
9
exercise of one shall not be deemed to be an election, and the
failure of the 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.
XV.
Lessee shall have the right to terminate this Lease
Agreement by giving the City ninety (90) days prior written
notice of the date of termination, in which case all obligations
on the part of Lessee shall also terminate as of the date of
termination, so long as the Property is returned in same or
better condition as upon September 1, 1991, normal wear and tear
excepted. If the Property is not in such condition, Lessee shall
repair the Property to such condition within sixty (60) days
after their termination of this Lease.
XVI.
Upon expiration of this Lease Agreement, or upon
termination thereof for any reason, all buildings, improvements
and fixtures placed on the Property by Lessee shall become
property of the City.
XVII.
It is specifically agreed and understood that the
parties intend and do hereby create a landlord/tenant relation-
ship, and this Lease Agreement shall be construed conclusively in
favor of that relationship. Lessee shall have the exclusive
right to exercise artistic judgement with regard to sales and/or
displays and/or creation of artwork in or upon the Property.
Nothing herein contained shall be deemed or construed by the
parties hereto, nor by any third party, as creating the relation -
10
ship 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, shall be deemed to create any relationship between the
parties herein other than that of Landlord and Tenant.
XVIII.
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.
XIX
If any clause or provision of this Lease Agreement is
illegal, invalid or unenforceable under present or future law
effective during the term of this Lease Agreement, then and in
that event, the remainder of this Lease Agreement shall not be
affected thereby, and in lieu of each such clause or provision,
shall be added automatically as part of this lease, a clause or
provision as similar in terms to such illegal, invalid, or
unenforceable clause or provision as may be possible and be
legal, valid, and enforceable.
XX.
Lessee agrees to pay the costs of newspaper publication
of this Lease Agreement and related ordinance as required by the
City Charter.
XXI.
This Lease Agreement is made and accepted subject to
all ad valorem taxes that may be levied and assessed on the
11
rropeity and/or its improvements, furnishings and contents during
the term of this Lease Agreement, the payment of which is hereby
assumed by Lessee.
XXII.
By Lessee's execution hereof, Lessee acknowledges that
Lessee has read this Lease Agreement and understands that this
Lease Agreement is not binding on the City until properly
authorized by the City Council and executed by the City Manager
of the City of Corpus Christi, Texas.
WITNESS THE HANDS of the duly authorized officers of
the parties hereto, this day of
ATTEST:
THE CITY OF CORPUS CHRISTI
By: By:
City Secretary Juan Garza, City Manager
APPROVED:
3/ day of �a4u..4 , 199f
BA � �, c
Assist nt Cityty
Atto ney
ByL.i V Watt la. By:
William Merle Wilhelmi
12
Benjamin Joseph Holland
THE STATE OF TEXAS §
COUNTY OF NUECES §
This instrument was acknowledged before me on the
day of , 1991, by Juan Garza., City Manager of
Corpus Christi, Texas on behalf of said City.
Notary Public, State of Texas
Type or Print Name of Notary
My Commission Expires:
THE STATE OF TEXAS §
COUNTY OF NUECES §
/�
This instrument was acknowledged before me on the �ni..�,
day of .3 , 1991. by William Merle Wilhelmi.
THE STATE OF TEXAS §
COUNTY OF NUECES §
day of
fat .P�
Notary Public, State cA Texas
Type or Print Name of Notary
My Commission Expires:
This instrument was acknowledged before me on the
, 1991, by BenjamUin,'J,os�eph Holland.ta
Notary Public, Ste Texas
13
iat
Type or Print Name of Notary
My Commission Expires:
That the foregoing ordinance was read for the first time and pass to
its second reading on this the day of
19 , by the following vote:
Betty N. Turner Edward A. Martin
Cezar Galindo 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
Cezar Galindo Joe McComb
Leo Guerrero Clif Moss
Tom Hunt Mary Rhodes
Frank Schwing, Jr.
That the foregoing ordinance was read for the third time
finally on this the day of19
following vote: ,
Betty N. Turner
Cezar Galindo
Leo Guerrero
Tom Hunt
Edward A. Martin
Joe McComb
Clif Moss
Mary Rhodes
Frank Schwing, Jr.
and
passed
by the
PASSED AND APPROVED, this the day of , 19
ATTEST:
City Secretary MAYOR
THE CITY OF CORPUS CHRISTI
APPROVED:
DAY OF
/C.k) 4JA LJ (- , 19(// :
JAMES R. BRAY, JR. INTERIM CITY ATTORNEY
BY L/i h_7t, pyGI ttufCi
Assistant City Attorney
044
That the foregoing ordinance was reactor the first t' a and pass..._ to
its second reading on this the J day of
19Li! , by the following vote: ~
Betty N. Turner
Cezar Galindo
Leo Guerrero
Tom Hunt
Edward A. Martin
Joe McComb
Clif Moss
Mary Rhodes
Frank Schwing, Jr.
(ul
city,
That the foregoing ordinance was read for the secon4time and passed
to its third reading on this the %)-- day of ,itAtA J(L�/
19 7 , by the following vote:
Betty N. Turner
Cezar Galindo
Leo Guerrero
Tom Hunt
2(�
Edward A. Martin
Joe McComb
Clif Moss
Mary Rhodes
Frank Schwing, Jr.
That the foregoing ord nance was read, fo t e third
finally on this the /L day of //(
following vote:
Betty N. Turner
Cezar Galindo
Leo Guerrero
Tom Hunt
Jetty -
31,
gly
di it-
tim nd passed
19 ((I , by the
Edward A. Martin
Joe McComb
Clif Moss
Mary Rhodes
Frank Schwing, Jr.
PASSED AND APPROVED, this the 1211 day of 1led01 , 19(i / .
ATTEST: Q
City Secretary V MAYOR
APPROVED:
1 DAY OF ,IcHAAL4,!-t" , 19(n :
JAMES R. BRAY, JR., INTERIM CITY ATTORNEY
By v /Y 6-4t5(_, / au -`a` -
Assistant City Attorney
044
THE CITY OF CORPUS CHRISTI
021103
PUBLISHER'S AFFIDAVIT
State of Texas, 3 CITY OF CORPUS CHRISTI Acct. # 0053-18438
County of Nueces I ss: Ad # 45109
PO #
Before me, the undersigned, a Notary Public, this day personally came
Annette Mendoza, who being first duly sworn, according to law, says
that she is an Accounting Clerk of the Corpus Christi Caller -
Times, a daily newspaper published at Corpus Christi in said County
and State, generally circulated in Aransas, Bee, Brooks, Cameron,
Duval, Hidalgo, Jim Hogg, Jim Wells, Karnes, Kenedy, Kleberg, Live
Oak, Nueces, Refugio, San Patricio, Victoria, and Webb Counties, and
that the publication of"NOTICE OFPASSAGE OF ORDINANCE NO. 021103"
of which the annexed is a true copy, was published in the Corpus
Christi Caller -Times on the 17th day of March 1991 , and each
day thereafter for 0 consecutive day(s).
1 Times 9vi(
$ 33.75 Accounting Clerk
Subs.o'ibeqd m ore me this 17th day of April , 1921.
DEBRA VILLARREAL
Notary Public, Nueces County, Texas
My commission expires on 4-24-93
State of Texas,
County of Nueces
PUBLISHER'S AFFIDAVIT
Acct. #0053-18438
]CITY OF CORPUS CHRISTI
] ss: Ad # 39087
PO #
Before me, the undersigned, a Notary Public, this day personally came
Annette Mendoza, who being first duly sworn, according to law, says
that she is an Accounting Clerk of the Corpus Christi Caller -
Times, a daily newspaper published at Corpus Christi in said County
and State, generally circulated in Aransas, Bee, Brooks, Cameron,
Duval, Hidalgo, Jim Hogg, Jim Wells, Karnes, Kenedy, Kleberg, Live
Oak, Nueces, Refugio, San Patricio, Victoria, and Webb Counties, end
that the publication of"NOTICE OF PASSAGE OF ORDINANCE ON FIRST READING"
of which the annexed is a true copy, was published in the Corpus
Christi Caller -Times on the 10th day of February 1991 , and each
day thereafter for 0. consecutive day(s).
1 Times
$ 36.45
1_444 Ut°C cL
Accounting Clerk
Su��bs�,oqr�ibe A sworn tQ before me this 13th day of February , t911.
DEBRA VILLARREAL
Notary Public, Nueces County, Texas
My commission expires on 4-24-93
f NOTICE OF PASSAGE OF
ORDINANCE NO. 021103
TIONZING THE EXECU-
OF IA TEN YEAR LEA
AGREEMENT WITHL .N.
WILHELMI AND $ENJARIIN _
JOSEPH HOLLAND FOR
BLOCK 89, LOTS 5 AND 6,
BEACH ADDITION, FOR AN'
ARTIST STUDIO AND GAL-
LERY: AND ROVIDING FOR
PUBLICAT ON; remuneration
to the City is $200 par
month.
A copy of the leas ison
file in the City Secretary`s
office.
The ordinance was passed
and approved on third reading
by the City Council of the City
of Corpus Christi, Texas an
the 12th rch, 1991.
Vis/ Aray of mando Chaps
City Secretary
City of Corpus Christi
NOTICE OF PASSAGE
OE ORDINANCE ON •
TONG
OFOFkLEASE 21NG-THE' EXECU-
TION A TEN-YEAR L
AGREEMENT WITH BILL R.
WILHELM' Aft BERJAMNI
JOSEPH 14044AAI't FOUR
BLOCK 69,•LOAS 5 AND 6,
BEACH ADDISON, snap fNFFpOR AN
ARTISGAL-
LLERY; AND SENSING FOR
PUBUCATION;
munerston to the city
Is 9200 per MilrtM.
A copy of the Nese
is on file N the •
City Secratsry's office.
TM oS{Mln$ was passed
end approv$ On first rid-
ing by the Ow Council
of the City of. Corpus
Christi, Tref on the 5th
day of February, 1991.
/s/Armando Chaps
Chy Secretary
City of Corpus Christi
r
PUBLISHER'S AFFIDAVIT
Acct. #0053-18438
State of Texas, 7 CITY OF CORPUS CHRISTI
County of Nueces 7 ss: Ad # 9387
PO #
Before me, the undersigned, a Notary Public, this day personally came
Annette Mendoza, who being first duly sworn, according to law, says
that she is an Accounting Clerk of the Corpus Christi Caller -
Times, a daily newspaper published at Corpus Christi in said County
and State, generally circulated in Aransas, Bee, Brooks, Cameron,
Duval, Hidalgo, Jim Hogg, Jim Wells, Karnes, Kenedy, Kleberg, Live
Oak, Nueces, Refugio, San Patricio, Victoria, and Webb Counties, and
that the publication of"MOTICE OF PASSAGE OF ORDINANCE ON SECOND READING"
of which the annexed is a true copy, was published in the Corpus
Christi Caller -Times on thel7rh day of February 1991 , and each
day thereafter for m consecutive day(s).
1_ Times
S 36.45 Accounting Clerk
Sttbsgribed , apcj s or obefore
U(
UC1)(Ci ei.L(IECL-
DEBRA VILLARREAL
Notary Public, Nueces County, Texas
My commission expires on 4-24-93
me
this
l
Vi
2,7nd day QC February -r-1991 •
DEBRA VILLAPPEAL
Notary t'oblio
Stat" of 1' Arts
My Comm ISN. 42493
Rodriguez, Jr. it bab-a,, w.
' NONCE OF FtqSSAGE
OF ORDINANCE ON
SECOND READING
AUTHORIZING THE EXECU-
TION OF A TEN YEAR LEASE
AGREEMENT WITH Sgt R.
WILHELMI AND BENJAMIN
JOSEPH HOLLAND FOR
BLOCK 69, LOTS 5 AND 6,
BEACH ADpDITIBN, FOR AN
ARTIST STUDIO AND GAL-
LLERY; AND PROVIDING FOR
PUBLICATION; re-
muneration to tfte City
is $200 pet month.
A copy of the lease
15 on file in the
City Secretary'soffice.
The ordinance was passed
and approved on second
reading by the City Council
of the City of Corpus Christi,
Texas on the 12th day of
February, 1991.
/S/Armando Chapa
City Secretary
City of Corpus Christi
NOTICE OF PUoi _ .,...--