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HomeMy WebLinkAbout021988 ORD - 07/12/1994AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A FIVE YEAR LEASE AGREEMENT WITH BAYFEST, INC. FOR THE USE OF THE GRANDE- GROSSMAN HOUSE, PARTS OF LOTS 4, 5, AND 9, BLOCK 61, BEACH ADDITION, IN HERITAGE PARK AS THEIR BUSINESS OFFICES; FOR A MONTHLY FEE OF $325; 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 five (5) year Lease Agreement with Bayfest, Inc. for the use of the Grande -Grossman House, portions of Lots 4, 5, and 9, Block 61, Beach Addition, in Heritage Park as their business offices, 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 of Corpus Christi as required by the City Charter of the City of Corpus Christi. AG5000.528.skp 021988 1 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 Grande -Grossman House, located at 1517 N. Chaparral, the west 30' by the north 20' of Lot 4, the west 30' of Lot 5, the east 50' of Lot and the east 50' by north 20' of Lot 9, Beach Addition, Block 61, City of Corpus Christi, Nueces County, Texas, together with all improvements thereon ("Property"); and WHEREAS, Bayfest, Inc. ("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 agrees to operate the Grande -Grossman House in a manner consistent with the use plan presented to the City and approval by the Landmark Commission on the Property. Any other uses of the property by Lessee shall be prohibited without prior written approval of the City Manager or his designee. Lessee shall have AG2730.016. abf E hi) 4- A r the right to establish and maintain its administrative offices within the structure and to provide meeting rooms for the activities of Lessee or any of its support groups as specified in the use plan. 2. Construction or Rehabilitation. Lessee shall have the right, but shall not be obligated, to rehabilitate existing or to construct additional improvements on the Property, subject to approval by the Landmark Commission and City Council. 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 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, landscaping and site improvements from the Director of Parks and Recreation. Local vendors and contractors shall be utilized for all new construction to the greatest extent possible. Lessee shall have sole and full responsibility for preparing the plans, advertising for bids, supervising construction and accepting the improvements when completed. The cost of construction, rehabilitation, landscaping, irrigation and other site improvements under the terms of this section shall be borne entirely by Lessee. It is understood that AG2730.016.abf 2 City does not assume and will not in any way be responsible for any of the financial obligations incurred or created by Lessee in connection with the construction of the improvements. Lessee agrees to save and hold City harmless from any and all charges, claims or liability of any nature 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 five (5) years, subject to the provisions concerning termination as stated herein. The property shall normally be open to the public weekdays, excluding holidays, during the regular office hours of Lessee. Lessor shall provide Lessee with information and materials which lessee shall make available to visitors concerning the history and restoration of the premises. Additionally, the City shall have the right to provide special tours for visiting parties or groups on an appointment basis. Premises shall also be available to the City for regularly scheduled tours as determined by the Park and Recreation Department. Lessee shall provide Lessor with keys to the property and a current list of names and phone numbers for use by the Lessor in case of emergency. (a) Lessor shall be permitted the use of a portion or portions of the premises not occupied by Lessee's administrative offices for meetings and other agreeable uses at times and on dates which may from time to time, be mutually agreed to by the paries to this Lease. At all times during which the A02730.016. abf 3 Lessor shall have access to and the use of premises, it shall be responsible for all security expense representative of its use or sponsored use of the structure. 4. Rent. The rental for the Property will be $325 per month payable on or before the 5th of each month during the entire term of the Lease Agreement. Payment shall be made to the order of the City of Corpus Christi and mailed or delivered to Central Cashiering, P.O. Box 9277, 78469 or 1201 Leopard Street, 78401. 5. Furnishing Building. Lessee is responsible for furnishing and equipping the interior of the Building and that City has no obligation to furnish any interior equipment or furnishings for the use of Lessee. All personal property furnished by or on behalf of Lessee will remain the property of Lessee unless specifically donated to City. 6. Maintenance. The City will maintain the lawn and vegetation and the exterior and structural components of the Building including termite and pest control at its own expense subject to annual budget allocation. Building maintenance will include exterior painting, roof repair, porches and termite pest treatment, steps, exterior doors and windows weatherproofing. Interior improvements, including painting and maintenance of plumbing, wiring, heating, air conditioning etc. will be at Lessee expense. Lessee will maintain, at its sole expense, the interior of the Building and all fixtures connected therewith and all personal property thereon. Maintenance shall be of such quality as AG2730.016.abf 4 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, redecorating, or signage beyond normal maintenance without prior written consent of the Landmark Commission and the City. No major interior construction shall consent of the City. Lessee 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. 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 be undertaken without prior written shall obtain, at its own expense, all AG2730.016.abf 5 T 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 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 interior maintenance. 11. Insurance. AG2730.016.abf 6 a) Lessee shall acquire and maintain the following insurance coverages during the term of this Lease Agreement: (i) Comprehensive general liability insurance covering all activities to be conducted on the Property by Lessee; minimum limits of coverage for said policy shall be $300,000 per person for bodily injury or death, $500,000 for all claims arising out of one occurrence, and $100,000 for property damage; and this insurance policy shall name the City of Corpus Christi as Additional Insured; (ii) personal property insurance in the amount of the full replacement value of all furnishings, fixtures and improvements provided by Lessor; and (iii) workers compensation insurance on all its employees which complies with state and federal law. All policies cannot be canceled, not renewed, or changed without thirty (30) days prior written notice to the Director of Park & Recreation. all such insurance The City Manager, or his designee, shall review 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 under this Lease Agreement to carry insurance coverages throughout the construction period with terms and amounts as required by the City Manager, or his designee. The amount and terms of coverages AG2730.016.abf 7 r 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 Park & 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 Manager. Acceptable sublessees would include another non-profit group or a commercial venture which fits the Heritage Park mission, including a gift shop, antique store, restaurant, etc. Unacceptable lessees would be office space for attorneys, CPA's, doctors, etc. 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 writing or except as otherwise contemplated by this Lease Agreement. AG2730.016.abf 8 r (2) Failure to abate any nuisance specified in writing by the City Manager within a reasonable time specified in writing by the City Manager. (3) 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) Abandonment of the Property. (6) Failure of Lessee to correct any other breach in the performance or observance of any other covenant or condition of Upon termination provided, or pursuant this Lease Agreement. of this Lease Agreement as hereinabove 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 City may determine, without being liable in trespass or for any damages. The foregoing rights and remedies 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 shall not be deemed to operate as a waiver of its right to exercise such right or remedy at any other or future time. AG2730.016.abf 9 T 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 August 4, 1993, 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. Pronerty 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 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 AG2730.016. abf 10 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. C. Terms. This Lease Agreement is made and accepted subject to all ad valorem taxes that may be levied and assessed on Lessee's personal property or on the Property and/or its Improvements during the term of this Lease Agreement, the payment of which is solely the responsibility of Lessee. D. Utilities. Lessee shall provide, at its own expense janitorial, electrical, phone and security services, and similar services during the lease period. Lessor shall provide water, wastewater and solid waste services and payment of such is to be considered as part of the monthly lease payment made by Lessee. AG2730.016.abf 11 E. No Waiver. 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. F. Notices: All notices authorized or required under this lease and all demands made pursuant to it shall be deemed sufficiently given when posted by certified mail, postage prepaid, return receipt requested, with the United States Postal Service addressed to the party to whom directed at the address herein set forth or at such other address as may be from time to time designated in writing by the party changing such address: LESSOR: City of Corpus Christi P.O. Box 9277 Corpus Christi, Texas 78469 Attention: City Manager LESSEE: Bayfest, Inc. P.O. Box 1858 Corpus Christi, Texas 78403 G. 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 AG2730.016.abf 12 on the City until properly authorized by the City Council and executed by the City Manager of the City of Corpus Christi, Texas. H. 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. I. No Debts. Lessee will incur no debts or obligations on the credit of the City of Corpus Christi. 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 DAY OF , 1994. JAMES R. BRAY, JR., CITY ATTORNEY By: Alison Gallaway Assistant City Attorney AG2730.016.abf 13 LESSEE Bayfest, Inc. By: Printed Name: THE STATE OF TEXAS § COUNTY OF NUECES S instrument was acknowledged before me on , 1994, by Juan Garza, of Corpus Christi, a Texas municipal said corporation. This the City behalf of Title: ACKNOWLEDGMENT the day of City Manager of corporation, on Notary Public, State of Texas ACKNOWLEDGMENT THE STATE OF TEXAS S COUNTY OF NUECES § This instrument was acknowledged before me on the day of , 1994, by (name), (title) of Bayfest, Inc., a Texas non-profit corporation, on behalf of said corporation. AG2730.016.abf Notary Public, State of Texas 14 That the foregoing ordinance was read for the first time and passed to itq second reading on this the 14 day of _RA -L . 19 Q'f- , by the following vote: Mary Rhodes Dr. Jack Best Melody Cooper Cezar Galindo Betty Jean Longoria Ab That the foregoing ordinance w s passe finally on this the IL 19 C1+ , by the following vote: Mary Rhodes Ctivy Dr. Jack Best t;___ /T Melody Cooper l/, -�}/ Cezar Galindo ftcy2 Betty Jean Longoria CLV- PASS D AND APPROVED, this the 12 19 (A . Edward A. Martin Dr. David McNichols David Noyola Clif Moss read for the second time and day of j U..kci Edward A. Martin Dr. David McNichols David Noyola Clif Moss day of e 1 APPROVED: 61 DAY OF CAA- JAMES R. BRAY, JR., CITY ATTORNEY Assistant ity Attorney \forms\044 515- r , 19��� PUBLISHER'S AFFIDAVIT State of Texas, } CITY OF CORPUS CHRISTI County of Nueces } ss: AD# 43415 PO# NOTICE OF PASSAGE OF OR- AINANCE UTHORIj 1Pits ON READINGCITV MANAGER TO EXECUTE A FIVE -NEAR LEASE AGREE- MENT WITH BAYFEST, INC. FOR THE USE OF THE GRANDE-GROSSMAN HOUSE, PARTS OF LOTS 4, 5, AND 9, BLOCK 61, BEACH ADDITION, IN HERITAGE PARK AS THEIR BUSINESS OFFICES; FOR A MONTHLY FEE OP $326; AND PROVID- ING FON PLICATION. The ordnance was passed and on on first City Council of us Christi on ths 1of June, 1994. /y Armando Chapa 1+r1 Secretary City of Corpus Christi 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 ON FIRST READING AUTHORIZING THE CITY MANAGER TO EXECUTE A FIVE-YEAR LEASE AGREEMENT WITH which the annexed is a true copy, was published in the Corpus Christi Caller -Times on the 19th day of June, 1994. One Time(s) $36.80 Subscribed and sworn to before me this 27th day of June, 1994. c. Notd(ry iblic, Nueces Coun , Texas PUBLISHER'S AFFIDAVIT State of Texas, } CITY OF CORPUS CHRISTI County of Nueces } ss: AD# 46574 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. 021988 AUTHORIZING THE CITY MANAGER TO EXECUTE A FIVE-YEAR LEASE AGREEMENT WITH BAYFEST, INC. which the annexed is a true copy, was published in the Corpus Christi Caller -Times on the 17th day(s) of July, 1994. One Time(s) _$36.80 j, C`.; dett Lxl G: t; Lic' 62 -it e Subscribed and sworn to before me this 2nd day of August, 1994. e:cy„w tary Public, 11677 x.;1994 w to of ueces County, `001 uulgq "ONNIE 1" ,,ouxr .7../ � Texas4: °cm'•T' \/ .r= : a s •In v, '• _dot ' Sunday, July 17, 1994 Corpus Christi Caller -Times NDTIE OF PASSAC tJ ORDINANCE NO. 1 AUTHORIZING pe 02111111 CITY MANAGER TO EXECUTE -•A FIVE-YEAR LEASE AGREE- MENT WITH BAYFEST. PC. FOR THE USE OF THE GRANDE-GROSSMAN HOUSE, PARTS OF LOTS -4. 5. AND 9, BLOCK 61. BEACH ADDITION, IN HERITAGE PARK AS THEIR BUSINESS OFFICES; FOR A MONTHLY FEE OF $325; AND PROVE ING FOR PUBLICATION. , - The ordinance was passed and approved by the City Council of the City of Corpus Christi on On lath day of July. 19114. ... /s/ Armando **' S of CChu usi