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HomeMy WebLinkAbout021896 ORD - 03/15/1994AN ORDINANCE AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE A TWENTY-YEAR LEASE AGREEMENT WITH THE MUSEUM OF ORIENTAL CULTURES, FOR USE OF THE ILA BUILDING; AND PROVIDING FOR PUBLICATION. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI: SECTION 1. That the City Manager is hereby authorized to execute a twenty-year lease agreement with the Museum of Oriental Cultures for use of the ILA Building, located at Corpus Christi, Texas, Beach Addition, Block 69, fractional lots 7, 8, and 9, and full lots 10, 11, and 12, all as more fully set forth in the Lease Agreement, a substantial copy of which is attached hereto, marked Exhibit A. SECTION 2. Publication shall be made in the official publication of the City of Corpus Christi as required by the City Charter of the City of Corpus Christi. A:AG5000.459skp i�1.189R MLCRQEjLMED 1 MUSEUM OF ORIENTAL CULTURES LEASE AGREEMENT THE STATE OF TEXAS § COUNTY OF NUECES § WHEREAS, the City of Corpus Christi, Texas, ("City") is the owner of real property known as the ILA Building, located at Corpus Christi, Texas, Beach Addition, Block 69, fractional lots 7, 8, and 9, and full lots 10, 11, and 12, together with all improvements thereon ("Property"); and WHEREAS, the Museum of Oriental Cultures, a Texas non-profit corporation ("Lessee") desires to lease the Property, rehabilitate the existing improvements, and/or construct new improvements. In consideration of the foregoing and the mutual promises herein contained, City and Lessee agree as follows: 1. Use. City does hereby lease, let, and demise to Lessee the Property, together with all improvements located thereon. Lessee shall operate the Improvements and the Property exclusively for the following purposes, and uses incidental thereto: advancement of knowledge, appreciation and enjoyment of oriental cultures including but not limited to programs, exhibits, performances, promotions, classes, training, and education in oriental cultures. Such activities shall be conducted on a regular, continuous basis, and facilities constructed on the Property 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 including weekends. A:AG2730.017.skp 1 The cost of construction, rehabilitation, landscaping, irrigation and other site improvements shall be borne Lessee. any way incurred It is understood that be responsible for or created by Lessee of the improvements. entirely by City does not assume and will not in any of the financial obligations in connection with the construction Lessee agrees to save and hold City harmless from any and all charges, claims or liability of whatsoever as provided below. 3. Terms and Hours of Operations. The term of this Lease Agreement shall begin sixty (60) days after execution of this Lease Agreement and continue for twenty (20) years, subject to the any nature provisions concerning termination as stated herein. Within 18 months from the effective date of this Lease Agreement, Lessee shall be open to the public during regular office hours of Lessee for a minimum period of at least four (4) hours per day for five (5) days out of each week. Lessee shall post a sign outside the structure detailing the hours the same is open for public inspection. Lessee's activities will have priority on use of the ILA Building; however, Lessee shall permit use of the Property by 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 Property and in addition thereto, to charge actual out- of-pocket costs incurred by Lessee through the use by others. Such rental fee and such additional operating costs shall be calculated A:AG2730. 017 . skp 3 as shown on Exhibit "I" attached hereto, and made a part hereof for all purposes. Exhibit "I" will be reviewed by City and Lessee annually to make any reasonable changes agreed to by City and Lessee. The City Manager is hereby authorized to make said agreed upon changes to Exhibit "I" and attach any new Exhibit "I" to this Lease. Lessee may refuse the use of the Property 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 Property 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 City. 4. Rent. Lessee will provide advancement of knowledge, appreciation, and enjoyment of oriental cultures by providing programs, exhibits, performances, and education in oriental cultures on an on-going basis; will rehabilitate the ILA building and/or construct new improvements on the Property; will provide interior and exterior maintenance to the ILA Building and any new improvements; and will provide grounds maintenance for the Property in lieu of making monthly rental payments. 5. Furnishing Building. It is understood that Lessee will be responsible for furnishing and equipping the ILA Building and that City has no obligation to furnish any equipment or furnishings for Lessee. All personal property furnished by or on behalf of Lessee will remain the property of Lessee unless specifically donated to City. A:AG2730.017.skp 4 6. Maintenance. vegetation of the Property or extensive landscaping. expense, any improvements therewith, driveways, Lessee will maintain the lawn and at its own expense, including any garden Lessee will maintain, at its sole on the Property, all fixtures connected all personal property thereon, exterior walks and and all other areas which City has not agreed to maintain under this Lease Agreement. quality as to maintain the Property consistent and in harmony with the improvements on properties leased by Bayfront Arts and Science Park. Maintenance shall be of such in a first-class condition, standard of maintenance of City to other tenants in the Lessee shall not undertake exterior construction, remodeling, redecorating, or signage beyond normal maintenance without prior written consent of the City Manager. No major interior construction shall be undertaken without prior written consent of the City Manager. Lessee shall obtain, at its own expense, all building permits. 7. Indemnity. Lessee shall fully indemnify, save and hold harmless 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. A:AG2730.017.skp 5 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. 8. Compliance with Laws. Lessee agrees that in the 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 City for the correction, prevention and abatement of nuisances or code violations in or connected with the Property during the term of this Lease Agreement, at Lessee's sole expense and cost. 9. Signage. 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 Manager. City Manager 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, City may fulfill its demands and charge the expense of same to Lessee. Payment for such work shall be made within thirty (30) days of receipt of said bill. This paragraph does not apply to temporary signs, in conformity with city codes, on the Property for two weeks or less. 10. Right to Enter and Inspect. The City reserves the right to enter the Property at any reasonable time during business hours A:AG2730.017.skp 6 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 maintenance. 11. Insurance. a) Lessee shall acquire and maintain the following insurance coverages during the term of this Lease Agreement: (i) liability insurance covering all activities to be conducted on the Property; (ii) property insurance in the amount of the full replacement value of all building or improvements on the Property; (iii) personal property insurance in the amount of the full replacement value of all furnishings (excluding artwork), fixtures and improvements; and (iv) workers compensation insurance on all its employees which complies with state and federal law. All policies cannot be cancelled, not renewed, or changed without thirty (30) days prior written notice to the Director of Park & Recreation. The City Manager shall review all such insurance amounts and coverages annually and may increase the coverages at that time. b) In addition, Lessee shall require any contractor for construction or rehabilitation of any buildings or improvements A:AG2730.017.skp 7 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 substantially similar to those required by City for similar operations, and shall be re-evaluated on an annual basis. c) Lessee shall provide Director of Parks & Recreation with certificates of insurance reflecting all the above coverages, and shall, upon request by the City Manager, promptly provide the City Attorney with copies of all such insurance policies. 12. Subletting or Assignment. 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. This restriction does not include renting all or part of the Property for a period of less than one (1) week. 13. Defaults. Upon thirty days prior written notice to Lessee, 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 1 except during periods necessary for repairs or renovation approved by the City Manager in A:AG2730.017.skp 8 writing or except as otherwise contemplated by this Lease Agreement. (2) Failure to abate any nuisance specified in writing by the City Manager within a reasonable time specified in writing by the City Manager. Lessee's assignment of this Lease Agreement or attempted assignment or subletting, without prior written consent of City. (4) Failure to have in effect policies of contractor's insurance, liability insurance, and/or workers' compensation insurance as required by City Manager. (5) Failure to pay any taxes prior to the due date. (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. (8) Failure to pay payroll taxes, medicare taxes, FICA taxes, unemployment taxes, and all other related taxes in accordance with Circular E Employer's Tax Guide, Publication E, as it may be amended. Upon termination of this Lease Agreement as hereinabove provided, or pursuant to statute, or by summary proceedings or otherwise, 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 City may determine, without being liable in trespass or for any damages. The foregoing rights and remedies (3) A:AG2730.017.skp 9 given to City are, and shall be deemed to be, cumulative of any other rights of City under law, and the exercise of one shall not be deemed to be an election, and the failure of 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. No assent, express or implied, by 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. 14. Termination. Lessee shall have the right to terminate this Lease Agreement by giving 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 the effective date of the Lease, 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 termination of this Lease. 15. Property of City. 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 City. 16. Landlord/Tenant. It is specifically agreed and understood that the parties intend and do hereby create a landlord/tenant relationship, and this Lease Agreement shall be A:AG2730.017.skp 10 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, shall be deemed to create any relationship between the parties herein other than that of Landlord and Tenant. 17. Amendments. 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. 18. General Provisions. A. Invalidity. 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. B. Publication. Lessee agrees to pay the costs of newspaper publication of this Lease Agreement and related ordinance as required by the City Charter. A:AG2730.017.skp 11 C. Terms. This Lease Agreement is made and accepted subject to all ad valorem taxes that may be levied and assessed on the Property and/or its improvements, furnishing and contents during the term of this Lease Agreement, the payment of which is hereby assumed by Lessee. D. Utilities. Lessee shall obtain, at its own expense all utility services, garbage collection, janitorial services, security services, and similar services during the Lease period. E. No Waiver. No assent, express or implied, by 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. F. Lessee's Acknowledgment. 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. G. Nondiscrimination. Lessee will not on the grounds of handicap, sex, race, color, or national origin, discriminate or permit discrimination against any person or groups of persons in any manner. City hereby reserves the right to take such action as the United States Government may direct to enforce this covenant. H. No Debts. Lessee will incur no debts or obligations on the credit of the City of Corpus Christi. A:AG2730.017. skp 12 I. Notices. All notices required or allowed under the Lease shall be: 1. hand -delivered; 2. mailed by certified mail; 3. faxes; or 4. sent by overnight mail. If hand -delivered or faxed, the notice shall be deemed received on the day delivered or faxed. overnight mail, the notice shall be business day after it was sent. bycertified mail, the notice shall be business day after it was mailed. If to City: Director of Parks and Recreation City of Corpus Christi P.O. Box 9277 Corpus Christi, Texas 78469-9277 If the notice is sent deemed received on the next If the notice is mailed deemed received on the third Notice shall be sent as follows: If to Lessee: Museum of Oriental Cultures 418 Peoples Street Suite 200 Corpus Christi, Texas 78401 J. Concession Rights. Lessee shall have the right to provide concession activities, including food and beverages. City shall have the right to approve all prices charged, which approval is delegated to the City Manager. Lessee must notify City of proposed price changes sixty (60) days prior to the proposed change. The price change shall be immediately effective upon approval of the City Manager. 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 conditions elsewhere in the city. A:AG2730.017.skp 13 Lessee shall offer concession services to other users of the Property on the same basis and at the same prices as for Lessee. WITNESS THE HANDS of the duly authorized officers of the parties hereto, this day of , 1994. ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa Juan Garza City Secretary City Manager APPROVED AS TO FORM THIS MUSEUM OF ORIENTAL CULTURES, LESSEE By: Name: Title: DAY OF , 1994. JAMES R. BRAY, JR., CITY ATTORNEY By: Alison Gallaway Assistant City Attorney THE STATE OF TEXAS COUNTY OF NUECES § ACKNOWLEDGMENT This instrument was acknowledged before me on the day of , 1994, by Juan Garza, City Manager of the City of Corpus Christi, a Texas municipal corporation, on behalf of said corporation. A:AG2730.017.skp Notary Public, State of Texas 14 ACKNOWLEDGMENT THE STATE OF TEXAS § COUNTY OF NUECES § This instrument was acknowledged before me on the day of , 1994 , by (name), (title) of the Museum of Oriental Cultures, a Texas non-profit corporation, on behalf of said corporation. A:AG2730.017.skp Notary Public, State of Texas 15 That the foregoing ordinance was read to its second reading on this the f 19 tic , by the following vote: Mary Rhodes Dr. Jack Best Melody Cooper Cezar Galindo Betty Jean Longoria That the foregoing ordinance is passe�'ifinally on this the 19 "ly-, by the following vote: Dr. Jack Best /n��ir.i/ ,L Melody Cooper O.kn2kAi Cezar Galindo CLket Betty Jean Longoria 661 -- Mary Rhodes for the fir,�t time and passed day of F2ICWINA Edward A. Martin vWYL Dr. David McNichols ClA9l, David Noyola Q.v,t.) Clif Moss read for day of at - the second time and Van 11 Edward A. Martin Dr. David McNichols David Noyola Clif Moss PASSEq AND APPROVED, this the l) day of n/0vr 19 Lt City Secretary APPROVED: 13 DAY OF CUnt A.l t flat - v - r- J JAMES R. BRAY, JR., CITY ATTORNEY Assistant Ci A:AG50000.459.skp \forms\044 y Attorney u i89F , 1999 - 1 OF CORPUS CHRISTI PUBLISHER'S AFFIDAVIT State of Texas, } County of Nueces } ss: CITY OF CORPUS CHRISTI AD# 35854 PO/ Before me, the undersigned, a Notary Public, this day personally came Beverly Bennett, who being first duly sworn, according to law, says that she is Business Office Secretary of the Cornus Christi Caller -Times, a daily newspaper published at Cornus 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 OF PASSAGE OF ORDINANCE ON FIRST READING AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE A TWENTY YEAR LEASE which the annexed is a true copy, was published in the Corpus Christi Caller -Times on the 13th day(s) of February, 1994. One Time(s) 570.40 Business Off a Secretary Subscribed and sworn to before me this 7th day of March, 1994. Notary Public, Nueces County, Texas +.• plY PR • lP O: sl%• . O G: ot* t' . Z 73- * •)t00*• .• • s •.• ex.... .•1 \ • `: 14 G18j81y FiDnirry 114 (a9r17uet3llllliiR_ • NOTK>E OF PAEBAAI OF Olt- DINANCE ON FFIRRSST READING- , a AUTHORIZING THE CITY ., MANAGER OR HIS DESIGNEE TO EXECUTE A TWENTY YEAR LEASE AGREEMENT WITH THE MUSEUM OF ORI- ENTAL CULTURES FOR USE THE ILA PROVIDING FOR�PURUCAA-- ,i; TION. THE TERM 15 20 ;� YEARS FOR USE OF THE IN-,,, TERNATIONAI i fNCSHORE- MAN'S ASSOCIATION OLA) BUILDING FOR ADVANCE- „r MENT OR KNOWLEDGE, ,,- APPRECIATION, AND EN- JOYMENT OF ORIENTAL CULTURES THROUGH PRO- VIDING PROGRAMS, EXHIBITS, PERFORMANCES, AND EDUCATION IN ORIEN- TAL CULTURES ON AN ON-GOING BASIS; REHABILI- TATION OF THE ILA BUILDING AND/OR CON- STRUCT NEW IMPROVE- .' MENTS ON THE PROPERTY; „ PROVIDE INTERIOR AND EX- TERIOR MAINTENANCE TO THE ILA BUILDING AND ANY bi ,: NEW IMPROVEMENTS; AND ... , PROVIDE GROUNDS MAINTE- NANCE FOR THE PROPERTY :,,, IN UEU OF MAKING MONTH- o, LY RENTAL PAYMENTS. The ordlnancs was passed and approved on first .' reading by the City Coondl of IL:: the City of COINS Christi an n. the Sth ds of February, 19B4;,- dilAwls Ply ly of Clty of Carpi. CRtfatha,, PUBLISHER'S AFFIDAVIT State of Texas, County of Nueces } ss: CITY OF CORPUS CHRISTI AD# 65203 PO# Before me, the undersigned, a Notary Public, this day personally came Phyllis Smith, who being first duly sworn, according to law, says that she is Secretary 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 OF PASSAGE OF ORDINANCE NO. 021896 AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE A TWENTY-YEAR LEASE which the annexed is a true copy, was published in the Corpus Christi Caller -Times on the 20th day(s) of March, 1994. One Time(s) $65.60 Subscribed and sworn to before me this 6th day of April, 1994. Notary Public, Nueces County, Texas Corpus Christ Cilsr-TUrfw Strait?,Arch 20, 1994/H5 Legal Notices 11 ONOINANCE NO. oiluss AUTHORIZING THE CITU MANAGER OR HIS DESIGNEE TO EXECUTE A TWENTY- YEAR LEASE AGREEMENT. WITH THE MUSEUM OF ORI- ENTAL CULTURES FOR USE OF THE ILA BUILDING; IN LIEU OF MAKING MONTHLY PAYMENTS, LESSEE WILL PROVIDE ADVANCEMENT OF KNOWLEDGE, APPRECIA- TION, AND ENJOYMENT OF ORIENTAL CULTURES BY PROVIDING PROGRAMS, EX- HIBITS, PERFORMANCES, AND EDUCATION IN ORIEN- TAL CULTURES ON AN ON-GOING BASIS; WILL RE- HABILITATE THE ILA BUILDING ANP/OR CON- STRUCT NEW I VE- MENTS ON THE PROPERTY; WILL PROVIDE INTERIOR. AND EXTERIOR MAINTE- NANCE TO THE ILA BUILDING AND ANY NEW IMPROVEMENTS; AND WILL PROVIDE GROUNDS MAINTE- NANCE FOR THE PROPERTY; AND PROVIDING FOR PUBLICATION. The ordinance was passed and approved on second reading by the City Council of the City of Corpus Christi on the 15th day of March, 1994 h/ t rtNalfON of *Sit PietasUFA