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HomeMy WebLinkAboutC2006-431 - 9/26/2006 - Approved Page 1 of 17 10 YEAR LEASE AGREEMENT (WITH 5 YEAR RENEWAL OPTION) BETWEEN THE CITY OF CORPUS CHRISTI AND CORPUS CHRISTI EDUCATION FOUNDATION S'f A TE OF TEXAS ~ ~ KNOW ALL BY THESE PRESENTS: COUNTY OF NUECES ~ This lease agreement ("Lease") is entered into by and between the City of Corpus Christi, a Texas home rule municipal corporation ("City"), acting through its duly authorized City Manager, or his designee ("City Manager"), and Corpus Christi Education Foundation, a Texas nonprofit corporation ("Lessee"); and WHEREAS, City owns the Mary Carroll House located on Lot 4, Block 69, Beach portion, Corpus Christi, Nueces County, Texas, together with all improvements thereon ("Premises"); and WHERAS, the Corpus Christi Education Foundation mission is to advance educational opportunities for youth; and WHEREAS, Lessee has requested the use of the Premises for the purpose of establishing administrative offices for lessee and selected partnering educational and youth serving entities. NOW, THEREFORE, City and Lessee, in consideration of the mutual promises and covenants contained herein, agree as follows: Section 1. Definitions. A. Certificate of Occupancy - means the certificate of occupancy issued by the City of Corpus Christi B. City - means City of Corpus Christi, Nueces County, Texas, a home-rule municipal corporation C. City Manager - means City's City Manager or City Manager's designee D. Council- means City's City Council E. Director - means City's Director of Parks and Recreation or that Director's designee 2006-431 09/26/06 Ord027007 '6.0823DC CCEdFoun.d10YrLease.doc C C Education Foundation -..- Page 2 of 17 F. Holdover Period - means any period of time not exceeding six (6) months in length, which is measured in pro rata monthly increments for rental payment purposes, that Lessee remains in the Premises after the expiration of the original term of this Lease, the original term being one (1) year G. Lease - means this Lease document, including all attached and incorporated exhibits H. Lessee - means Corpus Christi Education Foundation, a Texas corporation I. Parks - means City's Parks and Recreation Department J. Premises - means Lot 4, Block 69, Beach Portion, Corpus Christi, Nueces County, Texas, and the structure thereon commonly known as the Mary Carroll House, together with all improvements located thereon K. Regular Hours of Operation- means, at a minimum, at least 30 hours per week per calendar month, except holidays. L. Risk Manager - means City's Director of Risk Management or that Director's designee M. Superintendent - means City's Multicultural Services Superintendent Section 2. Purpose. The purpose of this Lease, between City and Lessee, is to enable Lessee to establish administrative offices for the Lessee and partnering organizations, and to provide meeting rooms for activities of the Lessee and other organizations. Lessee shall establish and maintain during the term of this Lease an administrative office and meeting place and shall not operate the Premises for any other purpose without Director's prior written approval. Section 3. Term and Effective Date. The Initial Term of the Lease shall begin on the effective date and end on the 31 st day of July 2016. The effective date of this Lease is the J. ~r-- day of1\r-.-..t\. 1~, 2006. (As reEtuired by City Charter, the effective date is the 61 st day after the adoption by City Council on second and final reading of the ordinance authorizing the execution of this Lease. ) Tenant may renew the Lease for one extended term of five years. Tenant shall exercise the renewal option, if at all, by providing written notice to City not less than sixty (60) dallYs prior to the expiration of the Initial Term. The renewal term including rates, covenants, and provisions will be as mutually agreed between the City and the Lessee. C. \( Doyle.0306\PAAI<&REC .27\Lease&Us.eAgreemt\20J6\060823DC CCEdFoun d 1 OYr Lease doc ~~"~'- Page 3 of 17 This Lease may be terminated as set out in other sections of this Lease. However, the Director has the absolute right to terminate the Lease with or without cause upon sixty (60) days written notice to Lessee. Section 4. Contact Person/Lease Administrator. For this Lease, City's contact person and lease administrator is Director. Section 5, Lease Payments. L..see has represented to the City that it will secure all labor necessary to fully restore the property and to landscape the grounds of the property. In addition, Lessee has represented that it will fully maintain the interior and exterior of the property during the tenns of the Lease at no cost to the City. Lessee has also indicated its intention to use it best efforts to develop and maintain a Building Trades Educational Program that will undertake the exterior maintenance of the structures within Heritage Park, with the City providing materials and supplies. The program will be coordinated through the Di.ctor. It is the intention also to have this Building Trades Education Program undertake the construction of new projects such as a bandstand in Heritage Park at the request of the Director. In reliance on the representations of the Lessee, lease payments will be held in abeyance as long as the Lessee at a minimum fully maintains the exterior and interior of the structure to the standards of the other homes in Heritage Park and complies with all of the terms and conditions of the Lease. In the event that the Lessee fails to comply with this minimum, a lease rate of $500 per month shall become effective upon 30 days' notice from the City. Should any payment become due, payments must be made to the order of the City of Corpus Christi and mailed to City Collections Department, PO Box 9257, Corpus Christi, TX, 78469, or delivered to City Hall at 1201 Leopard Street, Corpus Christi, TX, 78401. Section 6. Delinquency and Default Regarding Lease Payments. A. Lessee is "delinquent" if City has not received Lessee's monthly lease payment on or before 5:00 p.m. on the 5th day of the month in which payment is due. If the 5th day of the month falls on a weekend or holiday, the payment must be tendered on the fires business day thereafter. B. Lessee is in "default" for purposes of Section 23 of this Lease if Lessee fails or refuses to pay the amount due within five (5) days after City has sent a written notice of delinquency to Lessee. Setion 7. Hours and Terms of Operation. A. The Premises shall be open to the public and Lessee shall operate the Premises, at a minimum, for a period of at least thirty (30) hours per week per calendar month, excluding holidays. Regular Hours of Operation may be C:\( Doyle 03 06IPARK&REC 27lLease&Us eAgreemt\20061060823DC CCEdFoun. d 1 OYr. Lease doc ~.-._- Page 4 of 17 adjusted, for scheduled seasonal activities and other special events scheduled by Parks. with the prior written approval of Director. B. Lessee agrees to maintain one furnished room that has been restored to reflect the period when the house was originally constructed. The furnished room shall be open to the public for viewing during Lessee's Regular Hours of Operation. C. During Lessee's Regular Hours of Operation, Lessee shall provide information to visitors regarding the history and restoration of the Premises. D. Lessee shall provide the Superintendent with the keys to the Premises, a current list of names and phone numbers, and any security codes for use by the Superintendent or the Superintendent's designee, in the event of an emergency. Lessee shall allow the superintendent to have access to the Premises, by use of the keys provided in this subsection or during Regular Hours of Operation, during the 50-day period preceding expiration of this Lease, and including during any Holdover Period, in order to show the Premises to prospective tenants. However, for the purposes of securing Lessee records, event tickets, office equipment, and other valuables, Lessee may secure, at its discretion and expense, certain rooms of the Premises that will be accessible only to Lessee, by installing Lessee's own locks on selected doors and retaining control over these keys, provided that the rooms are approved in advance by the Director. Section 8. Public and Special Tours. Lessee grants to Parks the right to continue free regularly-scheduled public tours through the Premises, with the schedule to be determined by Parks. Lessee shall make Premises available for special tours for visiting parties or groups on an appointment basis Section 9. Utilities A. It is understood by and between the parties that scheduled, regular garbage collection services is available to the Premises and that the provision of this services shall be the responsibility of Parks under City's present Heritage Park maintenance program. The cost to Lessee for garbage collection service by City IS included and made a part of Lessee's monthly lease payment; B. Lessee shall deposit, or cause to be deposited, all garbage and debris generated at the Premises into the garbage dumpster provided by City at the Premises. Any garbage needs that Lessee requires at Premises, beyond regular service, or in addition to existing park dumpster capacity, shall be the responsibility, and at the sole expense, of Lessee. C. Lessee shall contract separately with a telephone service provider of Lessee's choice for the provision of active telephone service, at Lessee's sole expense. C\(Doyle.03 06\PARK&REC 27\Lease&Us.eAgreemt\2006\060823DC CCEdFound1 OYrLeasedoc ~ Page 5 of 17 D. Lessee shall bear the cost of all electricity used at the Premises during the term of this Lease and including any Holdover Period. Additionally, Lessee shall bear the cost of use, maintenance, and installation of a security alarm system installed at the Premises during the term of this Lease and including any Holdover Period. E. The City shall provide taps for water and wastewater on premises. The cost to Lessee for the provision of water and sewage service by City is included and made a part of Lessee's monthly lease payment. F. Should Lessee require any modification, after the certificate of occupancy is issued, to the provision of the enumerated utilities in this section or require any additional utility service not herein covered during the term of this Lease, Lessee shall submit a request, in writing, to Director for consideration and possible amendment of thiS Lease Section 10. Restoration, Repairs, and Maintenance. The City shall reimburse the Corpus Christi Education Foundation up to a maximum of $5(),OOO for the restoration of the interior and exterior of the property, which includes: reWliring for electricity, cable, internet, gas, security system; plumbing; restoration and/or replacement of floors, fire place walls cabinets, doors, patios, fac;ade, shutters, counters, fixtures, windows, locks, paint, molding, landscaping, fencing, walks. The City shall reimburse the Foundation for costs associated with the restoration and construction within 30 days of submission of requests for reimbursement. The Corpus Christi Education Foundation shall recruit volunteers to serve 4000 volunteer hours to restore the property. The restoration of the property shall be completed within the first year of this lease. Restoration shall comply with City Code. The Foundation recognizes that the funding provided by the City comes from the CDSG program and as such all associated federal requirements must be met for the construction. Following the issuance of the certificate of occupancy, Lessee shall, at lessee's expense, maintain the interior and exterior of the Leased Premises. Maintenance shall include routine cleaning of floors, walls, ceilings, air filters, restrooms, kitchen, dusting, and light bulb changes. The City shall be responsible for maintaining landscaping, public parking area, park and recreation grounds. It is further understood and agreed that City shall maintain the utilties lines servicing the Premises. L.see may request a reduction in monthly lease payment(s) in exchange for payment of capital or significant improvements. All requests for these improvements must be submitted in writing, with a cost estimate, to the Director for Director's consideration and approval, in Director's sole discretion. However, all these improvements must be in compliance with Section 20 of this Lease. C\(Doyle.03.06IPARf(&REC 27ILease&Us.eAgreemtI2006106.0823DC CCEd Foun.d 1 OYr.Lease. doc _m_ Page 6 of 17 If lease is terminated by either party under the terms of the lease, the City agrees to reimburse the lessee within 30 days for any and all costs associated with the restoration of the property. Section 11. Furniture, Fixtures, and Equipment. A. It is understood that Lessee will be responsible for furnishing and equipping the Premises and that City has no obligation to furnish any equipment or furnishings for Lessee. 8. All personal property and trade fixtures furnished by or on behalf of Lessee will remain the property of the Lessee unless the personal property and trade fixtures are specifically donated to City during the term of this Lease or any Holdover Period. C. In the interest of maintaining the current Victorian theme of Heritage Park, Director retains the right to approve, prior to installation, all furnishings and fixtures that may be installed in the Premises, during the term of this Lease and any Holdover Period. Section 12. City Use. A. City is permitted the use of a portion or portions of the Premises not occupied by Lessee's administrative offices for meetings and other uses at times and on dates that may from time to time be mutually agreed upon by the parties to this Lease. Lessee is not entitled to any compensation in whatever form, either tangible or intangible, for City's use of the Premises. 8. City retains the nght to use or cross the Premises with utility lines and easements. City may exercise these rights when installing, maintaining, repairing, or removing the utility lines and easements. City must use reasonable Judgment in locating the utility lines and easements to minimize damage to the Premises. Section 13. Laws Affecting Operation of Premises and Performance. Lessee shall comply with all Federal, State, and local laws, ordinances, rules, and regulations applicable to Lessee's operation of the Premises and Lessee's performance under this Le8se. This Lease is also subject to applicable provisions of City Charter. Section 14. Inspection. Any officer or authorized employee of City may enter upon the Premises, at all reasonable times and without notice, to determine whether Lessee is providing maintenance in accordance with and as required by Section 10(8) or for any other purpose incidental to City's retained rights of and in the Premises. Setion 15. Capital Improvements by City. City may, from time to time, and in City's sole discretion, undertake capital improvement to the Premises. Prior to commencing any capital improvements, City shall notify Lessee 45 days in advance, in writing, of the dates in which Lessee shall be required to vacate the Premises, should Director deem C\(Doyle.O:H)6\PARt<&REC 27Lease&Us.eAgreemt\2006\060823DC CCEdFoun d1 OYr Lease doc - Page 7 of 17 this necessary. Lessee agrees that the term of this Lease shall be prorated for any period of time over one week during which Lessee is restricted from entering the P..mises for the purposes of constructing capital improvements. Lessee acknowledges and understands that City shall have no obligation to provide an alternate location for Lessee during any period that Lessee must vacate the Premises. However. if space is available at Heritage Park on a temporary basis, the City must provide a temporary location at a rate agreed by both parties. Additionally, Lessee is not entitled to any compensation in whatever form, either tangible or intangible, for loss of the use of a portion or portions of the Premises that may result due to City's construction of capital improvements at, in, or on the Premises. SllCtion 16. Budgetary Appropriations. L_see understands and acknowledges that the continuation of any City-provided service or maintenance after the close of any fiscal year of City, which fiscal year ends on July 31 of each year. shall be subject to sufficient appropriations and budget approval providing for or covering the contract item as an expenditure in City's budget. If revenue funds are not appropriated for any individual fiscal year following the execution of the Lease, the Lessee and City may revise the lease agreement to reflect changes in maintenance and services provide in exchange for payment. S-.::tion 17. Relationship of Parties. This Lease establishes a landlord/tenant relationship, and none other, and this Lease must be construed conclusively in favor of that relationship. In performing this Lease, both City and Lessee will act in an individual capacity and not as agents, representatives, employees, employers, partners, joint venturers, or associates of one another. The employees or agents of either party shall not be, or construed to be, the employees or agents of the other party for any purpose whatsoever. Section 18. Insurance. A. City shall maintain fire and extended coverage insurance on the Building and the Leased Premises in an amount that City deems appropriate. Lessee shall be responsible, at its expense, for fire and extended coverage insurance on all of its personal property, including removable trade fixtures, located in the Leased Premises. Insurance documents showing type and amount of coverage shall be submitted and attached as Exhibit A of this lease. Failure to maintain the Insurance during the term of this Lease, at the limits and with the requirements shown on Exhibit A, constitutes grounds for termination of this Lease. B. The Certificate of Insurance must be sent to the Risk Manager prior to occupancy of and operations at the Premises. The Certificate of Insurance must provide that City will have thirty (30) days advance written notice of cancellation, intent to not renew, material change, or termination of any coverage required in this Lease. City must be listed as an additional insured on the General Liability coverage. C\( Doyle. 03 06\PAFI<&REC. 27\Lease&Us.eAg reemt\2006\06. 0823 DC. CC Ed Found 1 OY r. Lease. doc ~""'_'T'_' Page 8 of 17 C. Lessee shall provide, during the terms of the Lease, copies of all insurance policies to the Risk Manager upon written request by City Manager. D. The Risk Manager shall retain the right to annually review the amount and types of insurance maintained by Lessee, to require increased coverage limits and types, if necessary in the interest of public health, safety, or welfare and to decrease coverage, if so warranted. In the event of any necessary increase, Lessee shall receive thirty (30) days written notice prior to the effective date of the requirement to obtain increased coverage. E. In the event alcoholic beverages are to be served on or in any Premises covered by this Lessee, the Lessee shall additionally obtain or cause to be obtaining alcoholic beverage liability insurance in the amount of one million dollars ($1,000,000.00) covering the event or time period when alcoholic beverages are to be served. F. Lessee shall, prior to any addition or alteration to, on, or about the Premises, obtain prior clearance, in writing, from the Risk Manager that the proposed addition or alteration will not necessitate a change or modification in the existing Insurance coverage maintained by Lessee. This clearance is in addition to the prior consent required by Section 20(A), as contained herein. Sction 19. Indemnity. In consideration of allowing Lessee to use the Premises, Lessee ("Indemnitor" covenants to fully indemnify, save and hold harmless City, its.officers, agents, representatives, and employees (collectively, "Indemnitees" from and against any and all liability, loss, damages, claims, demands, suits, and causes of action of any nature whatsoever asserted against or recovered from CII)' on account of injury or damage to person including, without limitation on the fOf!!egoing, Premises defects, workers' compensation and death claims, or p,.perty loss or damage of any other kind whatsoever, to the extent any injury, d.",age, or loss may be incident to, arise out of, be caused by, or be in any way connected with, either proximately or remotely, wholly or in part: (1) Lessee's perlormance pursuant to this Lease; (2) Lessee's use of the Premises and any and all activities associated therewith pursuant to this Lease; (3) the violation by Lessee, its officers, employees, agents, or representatives or by Indemnitees, or aiit' of them, of any law, rule, regulation, ordinance, or government order of any kiltd pertaining, directly or in- directly, to this Lease; (4) the exercise of rights uttder this Lease; or (5) an act or omission on the part of Lessee, its officers, etrlployees, agents, or representatives or of Indemnitees, or any of them p.-taining to this Lease, regardless of whether the injury, damage, loss, violation, exercise of rights, act, or omission is caused or is claimed to be caused by the sole, contributing, or concurrent negligence of Indemnitees, or any of them, and illfi/uding all expenses of litigation, court costs, and attorneys' fees, which arise, or are claimed to arise, out of or in connection with the asserted or recovered incident. Lessee covenants and agrees that, if City is made a party to any litlflation against Lessee or in any litigation commenced by any party, other than Lessee relating to this Lease, Lessee shall, upon receipt of reasonable notice C\{ Doyle.OJ 06\PARK&REC 27\Lease&Us.eAgreemt\20l'6\06.0823DC CCEdFoun d10Yr.Leasedoc - Page 9 of 17 r8farding commencement of litigation, at its own expense, investigate all claims and demands, attend to their settlement or other disposition, defend City in all actions based thereon with legal counsel satisfactory to City, and pay all charges of attorneys and all other costs and expenses of any kind whatsoever arising from any said liability, injury, damage, loss, demand, claim or action. Section 20. Alterations A. Lessee shall not make any alterations, additions, or improvements to, in, on, or about said Premises, without the prior written consent of Director. Lessee must also obtain clearance from the Risk Manager as required by Section 18(F) above B. All approved alterations, improvements, and additions made by the Lessee upon said Premises, although at Lessee's own expense, shall, if not removed by Lessee at any termination or cancellation hereof, become the property of City in fee simple without any other action or process of law. Lessee agrees to be contractually and financially responsible for repairing any and all damage caused by the removal. If items are installed in such a manner as to become fixtures, the fixtures shall not be removed by Lessee upon termination and shall become the property of City. Section 21. Signs. A. Lessee shall not exhibit, inscribe, paint, erect, or affix any signs, advertisements, notices, flagpole, or other lettering ("Signs") at, on, or about the Premises, or any part thereof. without Director's prior written approval. B. City may require Lessee to remove, repaint, or repair any Signs allowed. If Lessee does not remove, repaint, or repair the Signs within ten (10) days of Director's written demand, City may do or cause the work to be done, and Lessee will pay City's costs within thirty (30) days of receipt of Director's invoice. If payment is not timely made, City may terminate this Lease upon ten (10) days written notice to Lessee. Alternatively, City may elect to terminate this Lease after ten (10) days written notice to Lessee. SEtion 22. Sublease and Assignment. Lessee shall have the right with prior written consent of the Director to sublease to an organization one or more office spaces in the property for the purpose of developing partnerships and providing youth educational services. Lessee shall not, in whole or in part, assign or transfer directly or indirectly this Lease unless prior written approval has been obtained from Director. StllCtion 23. Default. A. The following constitute events of default under this Lease: I. Failure to pay a lease payment or other payment required by this Lease;; C I( Doyle.03. 061P ARK&REC 27\Lease&Us. eAgreemtI2006\06.0823DC. ceEd Foun. d 1 OYr. Lease. doc .......~..,- Page 10 of 17 II. Failure to pay utilities before the due date; iii. Failure to perform scheduled maintenance; iv. Abandonment of the Premises: v. Failure to maintain any insurance coverage required herein; vi. Failure to timely pay City's invoice for the removal, repainting, or repair of any Signs at the Premises; and vii. Failure to keep, perform, and observe any other promises, covenants and conditions contained in this Lease. B. Upon the occurrence of any event of default, City may, at its option, in addition to any other remedy or right given hereunder or by law; I. Give notice to Lessee that this Lease terminates upon the date specified in the notice, which date will be no earlier than five (5) days after the giving of the notice; or Ii. Immediately or at any time after the occurrence of the event of default and without notice or demand, or upon the date specified in a notice, if given, or in any notice issued pursuant to law, enter upon the Premises or any part thereof in the name of the whole and, upon the entry, this Lease terminates Section 24. No debts. Lessee shall not incur any debts or obligations on the credit of City during the term of this Lease and including during any Holdover Period that may occur. Section 25. Notice. A. All Notices, demands, requests, or replies provided for or permitted under this Lease by either party must be in writing and must be delivered by on of the following methods: (i) by personal delivery; (ii) by deposit with the United States Postal Service as certified or registered mail, return receipt requested, postage prepaid; (iii) by prepaid telegram; (iv) by deposit with an overnight express delivery service, for which service has been prepaid; (v) by fax transmission. B. Notice deposited with the United States Postal Service in the manner described above will be deemed effective two (2) business days after deposit with the United States Postal Service. Notice by telegram or overnight express delivery service will be deemed effective one (1) business day after transmission to the telegraph company or overnight express carrier. Notice by fax transmission will be deemed effective upon transmission with proof of delivery. C. All the communications must only be made to the following: C\(Doyle.03.06\PAAt<&REC 27\Lease&Us.eAgreemt\2006\060823DC CCEdFolln.d10Yr Lease doc Page 11 of 17 IF TO CITY: _." . - -'~. ._.~--- IF TO LEESSEE: City of Corpus Christi Attn: Director of Park and Recreation PO. Box 9277 Corpus Christl, Texas 78469-9277 Executive Director Corpus Christi Education Foundation P.O. Box 110 Corpus Christi, Texas 78403 D. Either party may change the address to which notice is sent by using a method set out above. Lessee shall notify City of an address change within ten (10) days after the address is changed. Section 26. Nondiscrimination. Lessee covenants and agrees that it shall not discriminate nor permit discrimination against any person or group of persons, with regard to employment and the proviSion of services at, on, or in the Premises, on the grounds of race, religion, national origin, sex. age, disability, or in any manner prohibited by the laws of the United States or the State of Texas. City hereby reserves the right to take action as the United States may direct to enforce this covenant. Section 27. Modifications. No changes or modifications to this Lease may be made, nor any provisions waived, unless the change or modification is made in writing and signed by persons authorized to sign agreements on behalf of each party. Section 28. Waiver. A. The failure of either party to complain of any act or omission on the part of the other party, no matter how long the same may continue, shall not be deemed a waiver by said party of any of its rights hereunder. No waiver of any covenant or condition or of the breach of any covenant or condition of this Lease by either party at any time. express or implied, shall be taken to constitute a waiver of any subsequent breach of the covenant or condition and shall not justify or authorize the nonobservance on any other occasion of the same or any other covenant or condition hereof. If any action by the Lessee requires the consent or approval of City on one occasion. any consent or approval given on said occasion shall not be deemed a consent or approval of the same or any other action at any other occasion B. Any waiver or indulgence of Lessee's default of any provision of this Lease shall not be considered an estoppel against City. It is expressly understood that, if at any time Lessee is in default in any of its conditions or covenants hereunder, the failure on the part of City to promptly avail itself of said rights and remedies which City may have, shall not be considered a waiver on the part of City, but City may at any time avail itself of said rights or remedies or elect to terminate this Lease on account of said default. Any waiver by the parties of a breach of any covenants, terms, obligations, or events of default shall not be construed to be a waiver of any subsequent breach nor shall the failure to require full C'>( Doyle.03 06\PARK&REC 27\I.ease&Us eAgreemt\200')\06082.1DC CCEdFour d1 OYr.Lease doc Page 12 of 1 7 compliance with this Lease be construed as changing the terms of this Lease or estopping the parties from enforcing the terms of this Lease. SKtion 29. Force Majeure. No party to this Lease shall be liable for delays or failures in performance due to any cause beyond its control including, without limitation, any detay or failure in performance caused by strike, lock out, fire, act of God or the public enemy, common carrier, severe inclement weather, riot or interference by civil or military authorities These delays or failures to perform shall extend the period of performance until these exigencies have been removed. The Lessee shall inform City in writing of proof of the force majeure within three (3) business days or otherwise waive this right as a defense. SKtion 30. Surrender Lessee acknowledges and understands that City's agreement to Lease the Premises to Lessee is expressly conditioned on the understanding that the Premises must be surrendered. upon the expiration, termination, or cancellation of this Lease, in as good a condition as received, reasonable use and wear, acts of God, fire and flood damage or destruction where Lessee is without fault, excepted. Section 31. Enforcement Costs. In the event any legal action or proceeding is undertaken by City to repossess the Premises, collect the Lease payment(s) due hereunder, collect for any damages to the Premises, or to in any other way enforce the provisions of this Lease, Lessee agrees to pay all court costs and expenses and the sum that a court of competent jurisdiction may adjudge reasonable as attorneys' fees in said action or proceeding, or. in the event of an appeal, as allowed by an appellate court, if a judgment is rendered in favor of City SKtion 32. Publication Costs. Lessee shall pay for the cost of publishing the Lease description and related ordinance, as required by City's Charter, in the legal section of the local newspaper. SKtion 33. Interpretation and Venue. This Lease shall be interpreted according to the Texas laws which govern the interpretation of contracts. Venue lies in Nueces County Texas, where this Lease was entered into and will be performed. Section 34. Survival of Terms. Termination or expiration of this Lease for any reason shell not release either party from any liabilities or obligations set forth in this Lease that (a) the parties have expressly agreed shall survive the termination or expiration; (b) remain to be performed: or (c) by their nature would be intended to be applicable folowing the termination or expiration. Section 35. Acknowledgment and Construction of Ambiguities. The parties expressly agree that each has independently read and understood this Lease. By Lessee's execution of this Lease, Lessee agrees to be bound by the terms, covenants, and conditions contained in this Lease. Furthermore, Lessee acknowledges and understands that this Lease is not binding on City until properly authorized by the Council and executed by City Manager or City Manager's designee. Any ambiguities in this Lease shall not be construed against the drafter. e,f Doyle. .J3. 06iPARK&REC 27\Lease&Us eAgreemt\20' 16\06 0823DC CC Ed FOLn. d 1 OYr l.ease doc Page 13 of 17 Section 36. Captions. The captions utilized in this Lease are for convenience only and do not in any way limit or amplify the terms or provisions hereof. Section 37. Severability. A. If, for any reason, any section, paragraph, subdivision, clause, provision, phrase, or word of this Lease or the application hereof to any person or circumstance is, to any extent, held illegal, invalid, or unenforceable under present or future law or by a final judgment of a court of competent jurisdiction, then the remainder of this Lease, or the application of said term or provision to persons or circumstances other than those as to which it is held illegal, invalid, or unenforceable, will not be affected thereby. for it is the definite intent of the parties to this Lease that every section, paragraph, subdivision, clause, provision, phrase, or word hereof be given full force and effect for its purpose B. To the extent that any clause or provision is held illegal, invalid, or unenforceable under present or future law effective during the term of this Lease, then the remainder of this Lease is not affected thereby, and in lieu of each illegal, invalid, or unenforceable clause or provision, a clause or provision, as similar in terms to the illegal, invalid, or unenforceable clause or provision as may be possible and be legal, valid, and enforceable, will be added to this Lease automatically. Section 38. Entirety Clause. This Lease and the incorporated and attached exhibits constitute the entire agreement between City and Lessee for the purpose granted. All other agreements, promises, representations, and understandings, oral or otherwise, with reference to the subject matter hereof, unless contained in this Lease are expressly revoked as the parties intend to provide for a complete understanding within the provisions of this Lease and its exhibits of the terms, conditions, promises, and covenants relating to Lessee's operations and the Premises to be used in the operations, ,'~~~~~~yl ~/)l~~~~EL~~~~~f which shall be considered an original, on the ATTES~:-.r-- tJ . Armando Chapa, City Secretary ~~ 23 August 2006 Dtyle D. Curtis Cltef, Administrative Law Section S.,ior Assistant City Attorney For City Attorney '. /. CyJ D L l DO I AU I HUKI..L. ~, oou~CI~-:'~~qlJk./.~.L -........ .........ffr:-- S~r.in A'V-(L--- c( Doyle.O:J()6\PARl<&REC 27\Lease&Us.eAgreemt\2006\060823DC CCEdFoun.d 1 OYr Lease doc Page 14 of 17 STATE OF TEXAS COUNTY OF NUECES .~: ~ ' Thfs instrument was acknowledged before me on theJ II d~y of t~~ 2006, by George K. Noe. City Manager, or his designee ~ ..," .. ..... ..' of City of Corpus Christi, a Texas home-rule municipal c~:ion, onbe ! If Ofth~ corporation. Vi tL/lLv-- V 0. 'tr { ~ J #- --------- N(4ary Public, State of Texas tS''1 PIJ i -.t' '\, onnle Parks ~ ~f f My CommiSSiOn Expires _~"f:9f~__ November 09.2007 Printed Name Commission Expires ________ LESSEE: Corpus Christi Education Foundation By: ~ il\. ~ ;V~~ Name: L~II y C1ize>"Ja ~cl. \J \0-.. ~\..\. \ \). c:\ cs.. Title: PFssiQgnt T\f ~D.. "'"'-'i e r Date :~ I d--:~./ Db STATE OF TEXAS COUNTY OF NUECES This instrument was aCknowledged before me on the day of 2006, by Larry Elizondo as the President of the Corpus Christi Education Foundation, a Texas nonprofit corporation, on behalf of said corporation. Notary Public, State of Texas Prtnted Name C \(Doyle.03.06\PARK&REC 27\Lease&Us eAgreemt\2006\06.0823DC CCEdFoun.d10Yr Lease doc ~<".~...... Page 15 of 17 EXHIBIT A INSURANCE REQUIREMENTS LESSEE'S LIABILITY INSURANCE A. Lessee must not commence work under this agreement until all insurance required has been obtained and such insurance has been approved by the City. Lessee must not allow any subcontractor to commence work until all similar insurance required of any subcontractor has been obtained. B. Lessee must furnish to the City's Risk Manager, 2 copies of Certificates of Insurance, showing the following minimum coverage by an insurance company(s) acceptable to the City's Risk Manager. The City must be named as an additional insured on the General liability policy, and a blanket waiver of subrogation is required on all applicable policies. nlPE OF INSURANCE MINIMUM INSURANCE COVERAGE 3Q.written day notice of cancellation, material Bodily Injury and Property Damage c"nge, non-renewal is required on all ccWtificates ! Per occurrence aggregate Commercial General Liability including: $500,000 COMBINED SINGLE LIMIT 1. Commercial Form 2. Premises - Operations 3. Products/ Completed Operations Hazard 4. Contractual Liability 5. Broad Form Property Damage 6. Independent Contractors 7. Personal Injury LIQUOR LIABILITY COVERAGE $1,000,000 COMBINED SINGLE LIMIT If liquor being served EMPLOYERS LIABILITY Applicable when employs paid employees, ! I WHICH COMPLIES WITH THE TEXAS II WORKERS' COMPENSATION ACT AND I PARAGRAPH II OF THIS EXHIBIT I _.._f500,000 WORKERS' COMPENSATION C. In the event of accidents of any kind, Lessee must furnish the Risk Manager with copies of all reports of any accidents within 10 days of the accident. 2006 Heritage Park lease agreement ins. req. 8-29-06 ep Risk Mgmt C\IDoyle.CJ3.06\PARK&REC 2TLease&UseAgreemtI20J6\06 C1823DC CCEdFoun d10Yr LEase doc - Page 16 of 1 7 II. ADDITIONAL REQUIREMENTS A. Applicable when employing paid employees, Lessee must obtain workers' compensation coverage through a licensed insurance company. The coverage must be written on a policy and endorsements approved by the Texas Department of Insurance. The workers' compensation coverage provided must be in an amount sufficient to assure that all workers' compensation obligations Incurred by the Lessee will be promptly met. B. Certificate of Insurance: . The City of Corpus Christi must be named as an additional insured on the General Liability coverage and a blanket waiver of subrogation in favor of the City is required on all applicable policies. . If your insurance company uses the standard ACORD form, the cancellation clause (bottom nght) must be amended by adding the wording "changed or" between "be" and "canceled", and deleting the words, "endeavor to", and deleting the wording after 'left" . In lieu of modification of the ACORD form, separate policy endorsements addressing the same substantive requirements are mandatory. . The name of the project must be listed under "Description of Operations" . At a minimum, a 30-day written notice to the Risk Manager of cancellation, material change, non-renewal or termination is required. C. If the Certificate of Insurance on its face does not show the existence of the coverage required by items 1.B (1 )-(7), an authorized representative of the insurance company must include a letter specifically stating whether items 1.8. (1 )-( 7) are included or excluded. 2006 Hentage Park lease agreement ins req 8-23-06 ep Risk Mgmt C,I Doyle.0306\PARK&REC 27\Lease&Us eAgreemt\20IJ6\06 0823DC CCEdFoun.d1 OYr.Lease.doc Page 1 7 of 17 {EMBED imaging.Documentj, DATE: August 23,2006 TO: Tom Utter DOlt/Ie Curtis, Assistant City Attorney FRIOM: Evelyn Page, Risk Management SYBJECT: Recommended insurance requirements for the 2006 Heritage Park lease agreements A.ched please find the current insurance requirement exhibit for Heritage Park H-..ses lease agreements. Sllrould you have any questions or concerns, please give me a call. Attachment C' \( Doyle 0306\PAft!<&REC 27\Lease&Us eAgreemt\2006\06,0823DC CCEdFound1 OYr, Lease doc ~".....,,,="