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HomeMy WebLinkAbout027463 ORD - 10/30/2007Page 1 of 2 AN ORDINANCE AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO EXECUTE A FIVE-YEAR LEASE WITH BAYFEST, INC. FOR THE USE OF THE GRANDE-GROSSMAN HOUSE, LOCATED AT 1517 N. CHAPARRAL, IN HERITAGE PARK, AS THEIR BUSINESS OFFICES, IN CONSIDERATION OF BAYFEST, INC. PAYING A MONTHLY FEE OF $500; AND DECLARING AN EMERGENCY NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF CORPUS CHRISTI, TEXAS: SECTION 1. That the City Manager, or designee, is authorized to execute a five-year lease with Bayfest, Inc. for the use of the Grande -Grossman House located at 1517 N. Chaparral, in Heritage Park, Corpus Christi, Nueces County, Texas, together with all improvements thereon as their business offices, in consideration of Bayfest, Inc., paying a monthly fee of $500. A copy of the lease is attached and will be on file with the City Secretary. SECTION 2. That upon written request of the Mayor or five council members, copy attached, the City Council finds and declares an emergency due to the need for immediate action necessary for the efficient and effective administration of City affairs and suspends the Charter rule that requires consideration of and voting upon ordinances at two regular meetings so that this orclipance is passed and shall take effect upon first reading as an emergency this the 3Djof October, 200 7. ATTEST: Armando Chapa City Secretary APPROVED as to form: inA d3/4 -Li , 2007 Lisa Aguila Assistant City Attorney For City Attorney CITY OF CORPUS CHRISTI He Garrett Mayor 027463 H:\LEG-DIR Lisalordinan a O071ORD-BayfestLease rande- ressmanHOUse.de Page 2 of 2 . Corpus Christi, Texas 3�w� Day of 46a , 2007 TO THE MEMBERS OF THE CITY COUNCIL Corpus Christi, Texas For the reasons set forth in the emergency clause of the foregoing ordinance an emergency exists requiring suspension of the Charter rule as to consideration and voting upon ordinances at two regular meetings: Uwe, , therefore, request that you suspend said Charter rule and pass this ordinance finally on the date it is introduced, or at the present meeting of the City Council. Respectfully, Respectfully, He ry Garre Mayor Council Members The above ordinance was passed by the following vote: Henry Garrett Melody Cooper Larry Elizondo, Sr. Mike Hummel! Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon _41 C27463 H:\LE-DIRlLisa\ rdinance 00 I F D-Sayf stLease rands- rossmanHouse.dO LEASE AGREEMENT THE STATE OF TEXAS COUNTY OF NUECES WHEREAS, the City of Corpus Christi, a Texas home -rule municipal corporation ("City"), is the owner of real property known as the Grande -Grossman ("Building'), located at 1517 I. Chaparral, the west 30' by the north 20' of Lot 4, the west 30' of Lot 5, the east 50' by north 20' ofLot 9, Beach Addition, Block 61 a subdivision of the City ofCorpus Christi, Nueces County together with all improvements thereon ("Property"); and WHEREAS, the Bayfest, Inc., ("Lessee") desires to lease the Property; NOW, THEREFORE, in consideration of the mutual promises herein contained, the City and Lessee agree as follows: 1. Use. The City leases to Lessee the Property, together with all improvements located thereon. Lessee may establish and maintain its administrative offices within the Building and provide cultural programs for the membership and the public. 2. Construction or Rehabilitation. Lessee may, but is not obligated to, rehabilitate existing, or construct additional, improvements on the Property, subject to approval by the Landmark Commission and City Council. Lessee must use local vendors and contractors for all new construction to the greatest extent possible. The Lessee is solely and fully responsible for preparing the plans, advertising for bids, supervising construction and accepting the improvements when completed. Lessee must pay the full cost of construction, rehabilitation, landscaping, irrigation and other site improvements. The City does not assume and will not pay for any of the financial obligations incurred or created by the Lessee in constructing the improvements. Lessee must indemnify the City from any and all charges, claims or liability of any nature whatsoever as provided below. 3. Term. The term of this Lease begins on November 1, 2007 and continues for 5 years, subject to termination herein. The Park Director may schedule special events and festivals on Lessee's Property as well as in the surrounding area. Park Director will work with Lessee to not conflict with any of Lessee's programs. 1 . Consideration: Lessee shall pay rent of $500,00 per month, which includes city utilities and solid waste seriees. Rent will be waived for first five months and reduced to $200 in month six, to reimburse Lessee for its cost to install new air conditioning system at the Building. . Furnishing Building. Lessee will furnish and equip the Building and City has no obligation to furnish any equipment or furnishings for the Lessee. All personal property furnished by or on behalf of Lessee remains the property of Lessee unless specifically donated to City. . Maintenance. City will maintain the property grounds and landscapi.g an1 the exterior of the Building, subject to the amounts funded for that purpose in each annual City budget. If no funds are budgeted, or if cost of maintenance exceeds funds budgeted, City is relieved of its maintenance obligations and Lessee must maintain the Property grounds and landscaping and the Building's exterior. Lessee must maintain the interior of the Building and all personal property at the Property. Lessee must not undertake any exterior construction, remodeling, or signage without the prior written consent of the Landmark Commission and City Council. No major interior construction may be begun without City Manager's prior written consent. 7. Indemnity. Lessee must fully indemnify, save and hold harmless the City of Corpus Christi, its officers, employees, contractors and agents (the Indemnitees") against any and all liability, damage, loss, claims, demands and actions of any nature whatsoever on account of personal injuries (including, without limitation, premises defects, workers' compensation and death claims), or property loss or damage of any kind whatsoever, which arise, or are alleged to arise, out of Lessee's use of the Property under the Lease unless such injury, loss or damage is caused by the sole negligence of the Indemnitees. Lessee must 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. . Compliance with Laws. Lessee must promptly comply with and fulfill all applicable Federal, State, County,City, Cit , and other governmental agencies laws, rules, and regulations, and all ordinances or regulations imposed by the City for the correction, prevention and abatement of nuisances or code violations in or connected with the Property during this Lease Agreement, at Lessee's sole expense and cost. 9, Signage. Lessee must 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. 2 The City Manager may require Lessee to remove, paint or repair the signs allowed. If Lessee does not remove, paint or repair the signs within 30 days of City Manager's demand therefore the City may fulfill its demands and charge the expense ofsame to Lessee. Lessee must pay for such work within 30 days of City Manager's written demand therefore. 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 Manager may enter the Property at any reasonable time during business hours during this Lease, to determine whether the terms of this Lease are being observed and carried out, including but not limited to, both exterior and interior maintenance. 11. Insurance. Lessee must carry the level and type ofinsurance as set out below. Any contractors must carry equivalent insurance prior to performing work on the Property or at the Building. No insurance policy may be canceled, not renewed, or changed without 30 days prior written notice to the Park Director. Copies of all insurance policies must be provided to the City Attorney within 10 days of the Park Director's written request therefore. a) Lessee cannot begin construction or operate under this Lease until it provides all of the certificate(s) of insurance described below to the Park Director. (i) liability insurance covering all activities to be conducted, including liquor liability in the amount of $1,000,000 for events, private or public, that may serve alcohol on the Property, with the City named as an additional insured, noncancellable except upon 30 days written notice to the Park Director, in such amount and with such terms and coverages as required by the City Manager. Such insurance amounts may be reviewed annually and may be revised if necessary; and (ii)workers' compensation insurance on all its employees that meet state and federal law requirements. b) Lessee may carry personal property insurance in the amount of the full replacement value of all furnishings, fixtures, and improvements, insuring against all risks as required by the City Manager, or his designee, which: is noncancellable except upon 30 days written notice to Park Director, names the City as an additional insured, and contains such terms as required by the City Manager. Such insurance amounts may be reviewed annually and revised if necessary. Lessee will provide proof of compliance with new insurance within 30 days ofwritten notice to revise. c) In addition, Lessee must require any contractor for construction or rehabilitation of any improvement under this Lease 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 will be substantially similar to 3 those required by the City for similar operations, and may be re-evaluated on an annual basis. d) Lessee must provide Park Director with certificates of insurance reflecting all the above coverages, and shall, upon request by City Manager, promptly provide City Attorney with copies of all such insurance policies. 12. Subletting or Assignment. Lessee may not assign this Lease nor sublet the Propertyor any part thereof without the prior written consent of the City Manager. The consent of the City Manager will not be unreasonably withheld. 13. Defaults. Upon 30 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 upon occurrence of any ofthe following conditions "Defaults" , if Lessee has not cured the Default prior to termination: a) Failure to operate the Property for the purposes set forth in Paragraph I except during periods necessary for repairs or renovation approved by the City Manager in writing. b) Failure to abate any nuisance specified in writing by the Park Director within a reasonable time specified in writing by the Park Director. c) Lessee's assignment of this Lease or subletting of the Property, or attempted assignment or subletting, without prior written consent of City Manager. d) Failure to have in effect policies of contractor's insurance, liability insurance, and/or workers' compensation insurance as required by the City's Director of Risk Management (or successor official). e) Failure to pay rent. Abandonment of the Property. g) Failure of Lessee to correct any other breach in the performance or observance of any other covenant or condition of this Lease. h) Failure to pay withholding tax, Medicare withholding, FICA withholding, FUT. and all other similar taxes to the appropriate governmental agency prior to the due date. i) Failure to pay any taxes assessed against the Property due to this lease and against any of Lessee's personal property, or which may be assessed in the future, prior to the due date. j) Failure to pay any sales taxes prior to the due date. 4 Upon termination of this Lease as hereinabove provided, or pursuant to statute, or by summary proceedings or otherwise, the City may enter and resume possession without being liable to Lessee in trespass or for any damages. The foregoing rights and remedies given to the City are cumulative of any other rights of the City under law, and the exercise of one is not an election, and the failure of the City at any time to exercise any right or remedy is not to operate as a waiver of its right to exercise such right or remedy at any other or future time. 14. Termination. Lessee may terminate this Lease by giving the City Manager 90 days prior written notice of the date of termination, in which case all obligations on the part of Lessee also terminate as of the date of termination, if the Property is returned in same or better condition as upon as the date this Lease becomes effective, normal wear and tear excepted. If the Property is not in such condition, Lessee must repair the Property to such condition within 60 days after termination of this Lease. 15. Property of City. Upon expiration of this Lease, or upon termination thereof for any reason, all buildings, improvements and fixtures placed on the Property by Lessee automatically become property of the 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 must be construed conclusively in favor of that relationship. Nothing herein contained may be deemed or construed by the parties hereto, nor by any third party, to create 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, may create any relationship between the parties herein other than that of Landlord and Tenant. 17. Amendments. No changes or modifications to this Lease Agreement may be made, noryprovision waived, unless in writing signed by a person duly authorized to sign agreements on behalf of each party. This Lease supersedes all previous agreements between the parties. 18. General Provisions. a). Invalidity. If any clause or provision of this Lease is illegal, invalid or unenforceable under present or future law effective during this Lease, then the remainder of this Lease is not affected thereby, and in lieu of each such clause or provision, a clause or provision . as similar in terms to such illegal, invalid, or unenforceable clause or provision as may be possible must be automatically added to this Lease. b. Publication. Lessee must pay the costs of newspaper publication of this Lease and related ordinance as required by the City Charter. c). Taxes. This Lease is made and accepted subject to all ad valorem taxes that may be levied and assessed on the Property and/or its improvements, furnishings and contents during this Lease, the payment of which is hereby assumed by Lessee. S d). Services. Lessee must obtain, at its own expense all security services, and similar services it requires during the Lease. e). No Waiver. No assent, express or implied, by the City to any breach of any ofLessee's covenants, agreements, conditions or terms hereof is 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 and understands that this Lease 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 original, discriminate or permit discrimination against any person or groups of persons in any manner. h). No Debts. Lessee will incur no debts or obligations on the credit of the City of Corpus Christi. i). Utilities: Lessee must pay for electricity, phone, cable and other non -City owned utilities. J. by Notice: All notices which may or are required to be sent certified mail or hand delivered as follows: If to City: City of Corpus Christi Park & Recreation Department P.O. Box 9277 Corpus Christi, Texas 78469-9277 Attention: Director of Park & Recreation n under this Lease must be sent If to Lessee: Bayfest, Inc. P.O. Box 1858 Corpus Christi, Texas 78403 Attention: President WITNESS HANDS of the duly authorized officers of the parties hereto, this day of .2007. ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa, City Secretary George Noe, City Manager Approved as to form the day of 2007. By: Lisa Aguilar, Assistant City Attorney For City Attorney 6 Lessee: BaFest, Inc. By: Name: Title: President 7 ACKNOWLEDGEMENT THE STATE OF TEXAS § COUNTY OF NUECES § This instrument was acknowledged before me on the _ day of_ _ , 2007 by George Noe, City Manager of City of Corpus Christi, a Texas municipal corporation, on behalf of said corporation. Notary Public, State of Texas ACKNOWLEDGEMENT THE STATE OF TEXAS § COUNTY OF NUECES § This instrument was acknowledged before me on the day of _ , 2007 by President of BayFest, Inc. a Texas corporation, on behalf of said corporation. Notary Public, State of Texas 8