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HomeMy WebLinkAboutC2008-345 - 9/30/2008 - Approvedi' LEASE AGREEMENT THIS INDENTURE OF LEASE dated the 23rd day of September, 2008 by and between Greg Voisin Investment Corporation c/o Corpus Christi Realty Management, Inc. having an office for the transcription of business at 4646 Corona Drive, Suite 270, Corpus Christi, Texas 78411 and its mailing address as P.O. Box 81281, Corpus Christi, Texas 78468-1281 (hereinafter referred to as "Landlord's and The City of Corpus Christi, having its place of business at 2230 Saratoga Blvd, Corpus Christi, Texas 78415 and its mailing address as City of Corpus Christi, Attn: City Attorney, P. 0. Box 9277, Corpus Christi, Texas 78469 (hereinafter referred to as "Tenant"). WITNESSETH: In consideration of Ten ($10.00) Dollars and other good and valuable consideration, and the mutual covenants contained herein, and intending to be legally bound hereby, Landlord and Tenant hereby agree with each other as follows: SECTION 1. Premises: Landlord hereby leases and lets to Tenant, and Tenant hereby takes and hires from Landlord, upon and subject to the terms, conditions, covenants and provisions hereof, the following described premises consisting of 4780 square feet which are hereinafter referred to as the "Demised Premises": 2230 Saratoga Blvd., Corpus Christi, Texas 78415 legally described as Saratoga Place lots 19, less portion to R.O.W., 20 & 21, Block 7 SECTION 2. Term: The initial term of this lease shall be for Five (5) years, three (3) months, commencing on December 1, 2008, and ending on February 28, 2014, subject to annual appropriation of funds by Tenant. SECTION 3. Rent: The rental on the Demised Premises for the initial term will be at the following rates: Months Following the Commencement Date Annual Base Rate Per Square Foot of Net Rentable Area Annual Base Rent Monthly Pa ment 1 - 3 $0.00 $0.00 $0.00 4 - 15 10.20 48 765.00 $4,063.00 16 - 27 $10.20 $48,756.00 $4,063.00 28 - 39 $10.20 $48,756.00 $4,063.00 40 - 51 $10.20 $48,756.00 $4,063.00 52 - 63 $10.20 $48,756.00 $4,063.00 All rent shall be payable by Tenant by the fifth day of each and every calendar month during the term of this lease, and shall be payable at the office or residence of the Landlord first above written or at such other place of which Landlord shall give Tenant written notice at least thirty (30) days in advance. Monthly installments not made by the fifth day of the month will be subject to a late fee of 5% of the monthly rent which shall be added to the rent and paid to Landlord as additional rent. 2008-345 09/30/08 M2008-255 :,ease Sept 17 2008 - clean.doc Greg Voisin Investment Corp. SECTION 4. Security Deposit: Simultaneously with the execution and delivery of the lease, Tenant is depositing with Landlord the sum of zero dollars 0.00 herein referred to as "Security Deposit", which sum shall be deposited without interest with Landlord as security for the faithful performance by Tenant of all the terms, covenants, and conditions of this lease by said Tenant to be kept and performed during the term thereof, it being expressly understood that such Security Deposit is not an advance payment of basic rent, and additional rent, or any other sums payable by Tenant to Landlord hereunder or a measure of Landlord's damages in case of default by Tenant. Should Tenant comply with all of the terms, covenants, and conditions of this Lease and promptly pay all of the basic rent, any additional rent, or any other sums payable by Tenant to Landlord hereunder, the Security Deposit shall be returned in full to Tenant within 30 days after the end of the term of this lease, by mailing same to the office or residence of the Tenant first above or at such other place of which Tenant shall give Landlord written notice at least thirty (30) days in advance. SECTION 5. Additional Rent: Effective upon the date on which rental shall be determined to commence under the provisions hereof, Tenant agrees to pay to Landlord as additional rent as follows: (a) Any increases in the real property taxes and assessments which may be levied or assessed by any lawful authority, for each calendar year or tax year subsequent to the first lease year ("the Base Year', against the Demised Premises. Landlord shall notify Tenant of any increases in the taxes at least four months prior to the end of Tenant's fiscal year, in order to be paid in the upcoming fiscal year of the Tenant. (b) Any increases in the premiums for fire and extended coverage insurance carried by Landlord on the Demised Premises, for each and every calendar year subsequent to the first lease year ("the Base Year's Landlord shall notify Tenant of any increases in the insurance premium at least four months prior to the end of Tenant's fiscal year, in order to be paid in the upcoming fiscal year of the Tenant. As soon as practicable after the end of each calendar year, Landlord shall prepare a statement of comparative operating expenses along with a computation of the additional rental due the Landlord. Within ten (10) days following receipt of said statement, Tenant agrees to remit any additional rental which may be due the Landlord. SECTION 6. Use of Premises: The Demised Premises may be used for operations of the Corpus Christi Police Department. SECTION 7. Compliance with Law: Landlord covenants to Tenant that the Demised Premises, in its existing state, but without regard to the use for which Tenant will use the Demised Premises, does not violate any applicable building code, regulation or ordinance at the time this lease is executed. In the event it is determined that this warranty has been violated, then it shall be the obligation of Landlord, after written notice from Tenant, to rectify promptly, at Landlord's sole cost and expense, such violation(s). Landlord covenants that all improvements constructed to the Demised Premises under this Lease shall be in compliance with all applicable Local, State, and Federal laws and regulations. SECTION 8. Taxes and Utility Expenses: (a) (1) Landlord shall, during the term of this lease pay and discharge punctually, as and when the same shall become due and payable, all taxes, special and general 2 assessments, and other governmental impositions and charges of every kind and nature whatsoever pertaining to the Demised Premises, extraordinary as well as ordinary (hereinafter referred to as "Taxes'. (2) Tenant shall pay the charges which may, during the demised term, be assessed or imposed or payable for the water used or consumed on the Demised Premises, whether determined by meter or otherwise, as soon as and when the charges therefore have been assessed and imposed. All other utility service requirements on the Demised Premises, including sewer, gas, electricity and telephone (hereinafter referred to as "Utility Expenses"), shall be the sole responsibility of Tenant. (b) Landlord covenants and agrees that if there shall be any refunds or rebates on account of the Utility Expenses paid by Tenant under the provisions of this lease, such refund or rebate shall belong to Tenant. Landlord will, upon the request of Tenant, sign any receipts which may be necessary to secure the payment of any such refund or rebate, and will pay over to Tenant such refund or rebate as received by Landlord. (c) Nothing herein or in this lease otherwise contained shall require or be construed to require Tenant to pay any inheritance, estate, succession, transfer, gift, franchise, income or profit taxes, that are or may be imposed upon Landlord, its successors or assigns. SECTION 9. Improvements, Repairs, Additions, Replacements: (a) Landlord, at its expense, shall complete, alter, renovate and/or decorate the Demised Premises to conform to the floor plan attached hereto as Exhibit "A" and any specifications shown thereon. Landlord shall be responsible to complete the renovations by November 30, 2008. Landlord shall comply with all applicable Local, State and Federal building codes and regulations, and obtain all required permits and Certificate of Occupancy. (b) Upon obtaining prior written consent of Landlord which Landlord shall not unreasonably withhold, Tenant shall have the right, at its own cost and expense, to construct on any part or all of the Demised Premises, at any time and from time to time, such buildings, parking areas, driveways, walks, gardens and other similar and dissimilar improvements as Tenant shall from time to time determine, provided that the same shall be in compliance with all then applicable building codes and ordinances. (c) Except as hereinafter provided, Tenant shall, at all times during the term of this lease, and at its own cost and expense, keep and maintain or cause to be kept and maintained in repair and good condition (ordinary wear and tear excepted), the interior of all buildings and improvements at any time erected on the Demised Premises including, but not limited to, windows, doors, floors and floor coverings, heating and air conditioning systems, plumbing work and fixtures, and all lighting and all electrical systems within the Demised Premises, and shall use all reasonable precaution to prevent waste, damage or injury. Tenant shall at all times keep the grounds in neat order and condition. Except as provided in this lease, Landlord shall not be required to furnish any services or facilities or to make any improvements, repairs or alterations in or to the Demised Premises during the term of this lease or any renewal thereof. However, Landlord shall, at his own expense, maintain and keep in good repair the exterior walls, roof, and structural components of the Demised Premises and any parking lot appurtenant thereto. 3 (d) Upon obtaining Landlord's prior written consent which Landlord shall not unreasonably withhold, Tenant may, at its option and at its own cost and expense, at any time and from time to time, make such alterations, changes, replacements, improvements and additions in and to the Demised Premises, and the buildings and improvements thereon, as it may deem desirable, including the demolition of any building(s) and improvement(s) and/or structure(s) that now or hereafter may be situate or erected on the Demised Premises. (e) Until the expiration or sooner termination of this lease, title to any building or buildings or improvements situated or erected on the Demised Premises which Tenant shall have caused to be situated or erected pursuant to Section 9(a) above, and the building equipment and other items installed thereon and any alteration, change or addition thereto shall remain solely in Tenant; and Tenant alone shall be entitled to deduct all depreciation on Tenant's income tax returns for any such building or buildings, building equipment and/or other items, improvements, additions, changes or alterations. (f) On the last day or sooner termination of the term of this lease, Tenant shall quit and surrender the Demised Premises, and the buildings and permanent improvements then thereon, broom clean and in good condition, and repair (ordinary wear and tear excepted). SECTION 10. Access to Premises: Landlord or Landlord's agents. and designees shall have the right, but not the obligation, to enter upon the Demised Premises at all reasonable times to examine same and/or to exhibit the Demised Premises to prospective purchasers and prospective tenants, but in the latter case only during the last three (3) months of the term of this lease or any renewal thereof. SECTION 11. Assignment and Subletting: Tenant may not assign, sublease (in whole or in part or parts) mortgage or otherwise encumber this lease (in whole or in part or parts), or any sublease of all or any part of the Demised Premises and may not permit its subtenant or subtenants to assign, sublease (in whole or in part or parts), mortgage or otherwise encumber this lease or any sublease of all of any part of the Demised Premises, without obtaining Landlord's prior written consent therefore which Landlord shall not unreasonably withhold. Tenant agrees to furnish to Landlord written notice of the assignment of this lease within thirty (30) days thereafter, together with the name and address of the assignee. Upon any such assignment, Tenant shall be relieved of all further obligations hereunder and shall no longer have any liability under this lease or with respect to the Demised Premises. In the event of a merger of Tenant corporation, or a sale of all or substantially all of the assets of Tenant by Tenant or its stockholder(s), the Tenant shall have the right to assign this lease to such surviving corporation or to such vendee. SECTION 12. Sians: Tenant and Tenant's subtenants shall have the right to install, maintain and replace in, or on over or in front of the Demised Premises or in any part thereof such signs and advertising matter as Tenant may desire, and Tenant shall comply with any applicable requirements of governmental authorities having jurisdiction and shall obtain any necessary permits for such purposes. As used in this Section 12, the word "sign" shall be construed to include any placard, light or other advertising symbol or object, irrespective of whether same be temporary or permanent. 4 SECTION 13. Indemni Except for its affirmative acts or negligence or the affirmative acts or negligence of its officers, agents, servants, employees or contractors, Landlord shall not be responsible or liable for any damage of injury to any property, fixtures, building or other improvements, or to any person or persons, at any time on the Demised Premises, including any damage or injury to Tenant or to any of Tenant's officers, agents, servants, employees, contractors, customers or sublessees. SECTION 14. Insurance: (a) Tenant shall maintain general liability insurance in amounts of not less than $1,000,000/$1,000,000/$1,000,000. Tenant shall file a certificate of insurance with Landlord, if Landlord so requires, on 30 days written notice. Notwithstanding the foregoing sentence, the Tenant may meet its insurance obligations through self insurance and excess general liability insurance coverage. (b) Landlord shall maintain fire and extended coverage insurance on the Demised Premises and shall file a certificate of insurance with Tenant upon commencement of the term hereof. Tenant shall not be responsible for maintaining any fire and extended coverage insurance on the Demised Premises. Tenant may at its option, provide fire and extended coverage on the personal property which the Tenant moves into the Demised Premises. The premiums paid by Tenant on any insurance obtained by Tenant shall not be considered as additional rent under this lease. SECTION 15. Waiver of Subrogation: All insurance policies carried by the parties on both the Demised Premises and any personal property used or stored in or on the Demised Premises, including but not limited to fire and extended coverage on buildings and contents, shall allow the insured to waive its right of subrogation against the other party prior to a loss. Tenant and Landlord hereby release each other from any and all liability or responsibility to the other or anyone claiming through or under them by way of subrogation or otherwise for any loss or damage to the Demised Premises or property placed therein caused by fire or any other casualties, even if such fire or other casualties shall have been caused by the fault or negligence of the other party or anyone for whom such parties may be responsible. SECTION 16. Destruction: If the Demised Premises should be destroyed by fire, earthquake, act of God, or the elements during the term thereof, or damaged to such an extent that it cannot be repaired within sixty (60) working days, this lease shall terminate and any prepaid, unearned rental, if any, shall be refunded to Tenant, or, at the option of the Landlord to be exercised within fifteen (15) days after such damage or destruction and upon receipt of written consent from Tenant within fifteen (15) days thereafter, this lease shall remain in full force and effect, and Landlord shall, with all reasonable dispatch, proceed to replace the building with a structure similar in character, controlled by the then building laws and ordinances, and the rental shall abate for such length of time during the period of replacement that Tenant is deprived of the occupation and enjoyment of the Demised Premises. If, however the building is only partially destroyed by any of the above causes and the damage thereto can be repaired within the sixty (60) day period, Landlord shall, with all reasonable dispatch, with Tenant's prior written consent, proceed to repair the building and place it substantially in the same condition as it was prior to the damage, and Tenant shall pay rent to Landlord for the damaged premises should they be fit for occupancy during the time of repair. If the Demised 5 Premises are not fit for occupancy during the time of repair, then the rental shall abate during such time. SECTION 17. Eminent Domain; Condemnation: (a) Eminent Domain. Eminent domain is defined herein as the power of government to take, or to authorize the taking of, private property for public use without the owner's consent, conditioned on the payment of just compensation. As used herein, the work "condemnation" and variations thereof shall be synonymous with eminent domain. Under threat of eminent domain, a voluntary transfer by Landlord to the condemning authority before or after any suit has been filed or proceeding begun against Landlord by such authority shall be considered a taking under the power of eminent domain as defined herein. (b) Total Condemnation. As used herein, "total condemnation" and terms of similar import shall refer to the taking of the entire Demised Premises under the power of eminent domain, so that the fee ownership is transferred absolutely from Landlord to the condemning authority. (c) Partial Condemnation: As used herein, "partial condemnation" and terms of similar import shall refer to any condemnation of the Demised Premises other than a total condemnation as defined above. In the event the whole of the Demised Premises are taken for public or quasi-public purposes by any government or power whatsoever, or by any corporation under the right of eminent domain, or should the whole of the Demised Premises be condemned by any court, city, county, state, or governmental authority or office, department or bureau of any city, county, state, or of the United States, then in any such event this lease shall terminate as of the date title to the Demised Premises vests in the condemning authority. For the purposes hereof, such date of vesting in the condemner terminating this lease shall operate as though it were the date originally intended by the parties for expiration of the tenancy created hereunder, and the rent reserved herein shall be adjusted in the light of the condemnation, so that Tenant shall pay rent to Landlord only up to the date of vesting in the condemnor. Any prepaid or advance rental paid by Tenant to Landlord for that part of the term extending beyond the date on which the title vests in the condemnor shall be refunded within thirty (30) days after the date title to the Demised Premises vests in the condemning authority. If a portion of the Demised Premises should become subject to an eminent domain proceeding, Tenant shall have the option, at any time after the filing of the complaint and issuance of summons on the proceedings, to terminate this lease either as to the portion of the Demised Premises subject to condemnation or as to the whole thereof. Such option shall be exercised by giving Landlord written notice of termination or partial termination, specifying the reason for such termination and the part terminated, if termination is partial. If Tenant elects to continue the lease as to the uncondemned portion of the property, future rentals will be adjusted to a pro rata basis as described below. On the date of any order of a court of competent jurisdiction authorizing the condemnor in an eminent domain proceeding to take possession of a portion of the Demised Premises, the obligation of Tenant to pay the rentals herein specified shall cease as to the portion or portions of the Demised Premises subject to the taking. In addition, Tenant shall be entitled to a rebate of rentals paid in advance for any period after the date of such order for the portion or portions of the Demised Premises subject to the taking. Nothing herein shall be construed to limit or 6 affect the right of Tenant to be relieved of rental obligations or the right to a rebate of rental payments in the event of earlier termination of this lease as to all or a portion of the Demised Premises, as the result of condemnation proceeding or otherwise. In the event of the partial or complete taking of the Demised Premises by condemnation as aforesaid, Tenant shall be entitled to participate in any and all awards for such taking to the extent that any such award included (1) the loss, if any, sustained by Tenant as a result of the termination of this lease, and (2) the then value of the fixtures installed by Tenant and contained in the Demised Premises at the time of such taking, but only if such fixtures are taken. SECTION 18. Mortoaoes: During the term of this lease Landlord shall have the right or power to mortgage or otherwise create a security affecting the fee interest in the Demised Premises, and to renew, modify, replace, extend or refinance such mortgage, subject, however, to the follows: (a) All rights acquired under any such mortgage shall be subject and subordinate to the rights and interest of Tenant under this lease, the covenants, conditions and restrictions set forth herein, and the leasehold estate created hereunder. (b) The holder of such mortgage shall not, in the exercise of any of its rights arising or which may arise out of such mortgage, or any instrument modifying or amending the same of entered into in substitution or replacement thereof, disturb or deprive Tenant in or of its possessions or its right to possession of the Demised Premises, or of any part thereof under this lease, or any right or privilege created for or inuring to the benefit of Tenant under this lease, provided this lease is then in full force and effect. (c) In the event of a default under any such mortgage, and if this lease shall, immediately prior to such default, be in full force and effect, then, and in such event, Tenant shall not be made a party in any action or proceeding to foreclose said mortgage, nor shall Tenant be evicted or removed or its possession or right of possession be disturbed or in any manner interfered with, and this lease shall continue in full force and effect as a direct lease from the holder of the said mortgage to Tenant under the terms and provisions of this lease. (d) Any such mortgage shall provide that the holder of such mortgage, upon serving the Landlord with any notice under such mortgage will simultaneously serve a copy of such notice upon the Tenant. SECTION 19. Sublease: If for any reason this lease and the leasehold estate of Tenant hereunder is terminated by Landlord by summary proceedings or otherwise in accordance with the terms of this lease, Landlord covenants and agrees that such termination of this lease shall not result in a termination of any sublease affecting the Demised Premises and that they shall all continue for the duration of their respective terms and any extensions thereof as a direct lease between Landlord hereunder and the sublessee thereunder, with the same force and effect as if Landlord hereunder had originally entered into such sublease as Landlord thereunder (subject, however, to the prior right of the holder of any leasehold mortgage). Any such sublessee shall not be named or joined in any action or proceeding by Landlord under this lease to recover possession of the Demised Premises or for any other relief. Landlord shall, upon request, execute, acknowledge and deliver such agreements evidencing and agreeing to the foregoing as each sublessee shall require. SECTION 20. Performance by Subtenant: Any act required to be performed by Tenant pursuant to the terms of this lease may be performed by any sublessee of Tenant occupying all 7 or any part of the Demised Premises and the performance of such act shall be deemed to be performance by Tenant and shall be acceptable as Tenant's act by Landlord. SECTION 21. Ouiet Enjoyment: Landlord covenants that Landlord is seized of the Demised Premises in fee simple and has full right to make this lease and that Tenant shall have quiet and peaceful possession of the Demised Premises during the term hereof. SECTION 22. Defaults: In the event any one or more of the following events shall have occurred and shall not have been remedied as hereinafter provided: (a) (1) Tenant's failure to pay any installment of basis rent or additional rent when the same shall be due and payable and the continuance of such failure for a period of ten (10) days after receipt by Tenant of notice in writing from Landlord specifying in detail the nature of such failure or (2) Tenant's failure to perform any of the other covenants, conditions and agreements herein contained on Tenant's part to be kept or performed and the continuance of such failure for a period of thirty (30) days after receipt by Tenant of notice in writing from Landlord specifying in detail the nature of such failure, and provided Tenant shall not cure said failure as provided in paragraph (b) of this Section 22; then, Landlord may, at its option, give to Tenant a notice of election to end the term of this lease upon a date specified in such notice, which date shall not be less than three (3) business days (Saturdays, Sundays and legal holidays excluded) after the date of receipt by Tenant of such notice from Landlord, and upon the date specified in said notice, the term and estate hereby vested in Tenant shall cease and any and all other right, title and interest of Tenant hereunder shall likewise cease without further notice or lapse of time, as fully and with like effect as if the entire term of this lease had elapsed, but Tenant shall continue to be liable to Landlord as hereinafter provided. Simultaneously, with the sending of the notice to Tenant, hereinabove provided for, Landlord shall send a copy of such notice to any sublessees) of the Demised Premises or portions thereof that Tenant may select, in writing, from time to time and any additional persons or parties having an interest in the Demised Premises. The curing of any default(s) within the above time limits by any of the aforesaid parties or combination thereof, shall constitute a curing of any default(s) hereunder with like effect as if Tenant had cured some hereunder. (b) In the event that Landlord gives notice of a default of such a nature that it cannot be cured within such thirty (30) day period then such default shall not be deemed to continue so long as Tenant, after receiving such notice, proceeds to cure the default as soon as reasonably possible and continues to take all steps necessary to complete the same within a period of time which, under all prevailing circumstances, shall be reasonable. No default shall be deemed to continue if and so long as Tenant shall be so proceeding to cure the same in good faith or be delayed in or prevented from curing the same by any cause specified in Section 22 hereof. (c) Notwithstanding anything to the contrary contained in this Section 22, in the event that any default(s) of Tenant shall be cured in any manner hereinabove provided, such default(s) shall be deemed never to have occurred and Tenant's rights hereunder shall continue unaffected by such default(s). (d) Upon any termination of the term of this lease pursuant to paragraph (a) of this Section 22, or at any time thereafter, Landlord may, in addition to and without prejudice to any other rights and remedies Landlord shall have at law or in equity, reenter the Demised Premises, and recover possession thereof and dispossess any or all occupants of the Demised Premises (except as provided in Section 19 hereof) in the manner prescribed by the statute 8 relating to summary proceedings, or similar statutes; but Tenant in such case shall remain liable to Landlord as hereinafter provided. (e) In case of any such default, re-entry, expiration and/or dispossess by summary proceedings: (1) the rent shall become due thereupon and be paid up to the time of such re-entry, expiration and/or dispossess; (2) Landlord may relet the Demised Premises or any part or parts thereof, either in the name of Landlord or otherwise, for a term or terms which may, at Landlord's option, be less than or exceed the period which would otherwise have constituted the balance of the term of this lease and may grant concessions of free rent; and (3) Tenant or the legal representatives of Tenant shall also pay Landlord as liquidated damages for the failure of Tenant to observe and perform Tenant's covenants herein contained by deficiency between the rent hereby reserved and/or covenanted to be paid and the net amount, if any, of the rents collected on account of the lease or leases of the Demised Premises for each month of the period which would otherwise have constituted the balance of the term of this lease. In computing such liquidated damages, there shall be added to the said deficiency such reasonable expenses as Landlord may incur in connection with reletting, such as brokerage and preparation for reletting. Any such liquidated damages shall be paid in monthly installments by Tenant on the rent day specified in this lease and any suit brought to collect the amount of deficiency for any month shall not prejudice in any way the rights of Landlord to collect the deficiency for any subsequent month by a similar proceeding. Landlord, at Landlord's option, may make such alterations, repairs, replacements, and/or decorations in the Demised Premises as Landlord, in Landlord's sole judgment, considers advisable and necessary for the purpose of reletting the premises; and the making of such alterations, repairs, replacements, and/or decorations shall not operate or be construed to release Tenant from liability hereunder as aforesaid. Landlord agrees to use its best efforts to mitigate all damages and to relet the Demised Premises in the event of any default specified herein. (f) It shall not constitute a default if Tenant cancels this lease for nonappropriation of funds. SECTION 23. Waivers: Failure of Landlord or Tenant 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 to be a waiver by said party of any of its right hereunder. SECTION 24. Force Maieure: In the event the Landlord or Tenant shall be delayed, hindered in or prevented from the performance of any act required hereunder by reason of strikes, lock-outs, labor troubles, inability to procure materials, failure of power, restrictive governmental laws or regulations, riots insurrection, the act, failure to act or default of the other party, war or other reason beyond their control, then performance of such act shall be excused for the period of the delay and the period for the performance of such act shall be extended for a period equivalent to the period of such delay. SECTION 25. Notices: Every notice, approval, consent or other communication authorized or required by this lease shall not be effective unless same shall be in writing and sent postage prepaid by the United States registered or certified mail, return receipt requested, directed to the other party at its address hereinabove first mentioned, or such other address as either party may designate by notice given from time to time in accordance with this Section 25. 9 SECTION 26. Governing Laws: This lease and the performance thereof shall be governed, interpreted, construed and regulated by the laws of the State of Texas. SECTION 27. Partial Invalidity: if any term, covenant, condition or provision of this lease or the application thereof the any person or circumstance shall, at any time or to any extent, be invalid or unenforceable, the remainder of this lease, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term, covenant, condition and provision of this lease shall be valid and be enforced to the fullest extent permitted by law. SECTION 28. Entire Agreements: No oral statement or prior written matter shall have any force or effect. Tenant agrees that it is not relying on any representation or agreements other than those contained in this lease. This agreement shall not be modified or cancelled except by writing subscribed by all parties. SECTION 29. Parties: Except as herein otherwise expressly provided, the covenants, conditions and agreements contained in this lease shall bind and inure to the benefit of the Landlord and Tenant and their respective heirs, successors, administrators and assigns. The City Manager is authorized to act for Tenant in all matters regarding this Lease. SECTION 30. Holding Over: If Tenant remains in possession of the Demised Premises or any part thereof after the expiration of the term hereof without the express written consent of Landlord, such occupancy shall be tenancy from month-to-month at a rental in the amount of 120% the last monthly rental plus any other charges payable by Tenant hereunder, and upon all terms and conditions hereof applicable to a month-to-month tenancy. SECTION 31. Environmental Compliance: Tenant shall comply with all federal, state and local environmental laws and requirements. If any cleanup, containment, restoration, removal of other remedial work (collectively the "Remedial Work's is required under any applicable federal, state or local law or regulation, or by any governmental entity, agency or authority due to a violation of applicable law or a contamination, caused or materially contributed to by Tenant, Tenant shall pay any and all costs associated therewith. SECTION 32. Termination Option: Tenant may terminate Lease at any time after March I, 2012 by giving Landlord no less than 180 days prior written notice. In the event of termination, Tenant's obligation for any monthly rental payments under this Lease ends upon the date of termination, however, Tenant agrees to reimburse Landlord's uuamortized Lease costs equal to $1,519.70 for each month remaining on Lease at the time of termination. Additionally, the Tenant may terminate the Lease for Landlord's noncompletion of construction improvements as follows: If the Landlord' s improvements to the Demised Premises as described in Exhibit A are not completed by December 1, 2008, then Tenant's rent for month 4 of this lease shall be reduced to $Q, and Tenant shall give Landlord 30 days notice to cure. If at the end of the cure period the improvements are not completed, then Tenant may terminate this lease immediately for cause, and Tenant shall have no obligation for any payments to Landlord. Delays caused by acts of Force Majeure as defined in Section 24 or caused by Tenant shall not be grounds for Tenant's termination of this lease. 10 SECTION 33. Termination for Non-appropriation of Funds: Additionally, the continuation of this lease beyond the current fiscal year of Tenant, which current tlscal year ends July 31, 2009, is subject to annual appropriation of funding during each Uudget year for the City of Corpus Christi. If sufficient funds are not appropriated to continue this lease during any subsequent City fiscal year, then this lease terminates automatically at the end of the then-current City fiscal year. City's oUligation for any monthly rental payments under this Lease ends upon the end of the then-current fiscal year, if sufficient funds are not appropriated for the next fiscal year. Iu the event of termination for nonappropriation of funds, Tenant agrees to reimburse Landlord's unamortized Lease costs equal to $1,519.70 for each month remaining on Lease at the time of termination. SECTION 34. Renewal Option: Tenant shall have the option to extend the term of Lease for one (1) additional period of five (5) years. Tenant must provide Landlord with no less than 180 days written notice, prior to the expiration of Lease, of its intent to exercise option. The monthly rental rate shall be the current market rate for similar buildings, in the Southside office market of Corpus Christi, Texas. SECTION 35. Purchase Option: Tenant shall have a first right of refusal to purchase property should Landlord elect to sell during the primary Lease term or any extension thereof. In the event, Landlord accepts abona-fide purchase offer from a qualified Buyer, Landlord will notify Tenant in writing. Tenant will have ten (10) business days from receipt of written notice to either (i) agree to purchase property under the same terms and conditions accepted from prospective Buyer or (ii) allow Landlord to proceed with sale of property. IN WITNESS WHEREOF, the parties hereto have hereunto set their hands and seals the day and year first above written. Landlord: Greg Voisiy~Investment i~ By: Witness: (Attest:) rn~{~G o 1 G, ~ GCYt"F~l'~1 '~iGS1L~ ° ~'S5 AUTHORIZtu dl' COUNCIL .... Q~~(.~}.^^$.~ .~......~ ............. ~S: SECRETA' 11 Tenant: The City of Corpus Christi By: G`~f~~ 11gc ~ ~ • E-SCo r Z,ienn.. C;~ h(as<as~-r Approved as to form: _J.L~'~°P ~..fi~~_1~7 L~saT9u ar ~ Assistant City ttomeY For City Attorney Witness: (Attest:) Internal Revenue Service requires that payments made during a calendar year be reported on Federal Form 1099. In order to comply with the regulations for filing, it is necessary that Landlord furnish Tenant with social security (individual) or employer identification number (partnerships, joint ventures, trusts, estates). Non-compliance with the Federal requirement regarding taxpayer identification numbers will result in penalties being assessed by IRS to payee and/or payor. Please insert the number and name on the lines below. Name: Greg Voisin Investment Corporation Tax No.: 98-0158868 12 EXHIBIT "A" LANDLORD AND TENANT IMPROVEMENTS 13 2230 SARATOGA Room "A" l . Replace existing exterior front door with new metal door including door, frame, door closer, lever entry lock and dead bolt, (paint inside and out of new door). 2. Demo 2 old key pads by front door and patch holes. 3. Build new insulated wall as shown on plan between rooms "A" & "A1"with new solid core door, frame and entry lock, (paint door and frame). 4. Install new solid core door, frame and lever passage hardware between rooms "A" & "B", (paint door and frame). 5. Install new light fixture and wire to existing switch. 6. Install one new electrical outlet. 7. Replace existing light fixture on wall in stairwell with new 4' fluorescent fixture. 8. Secure wood banister and paint. 9. Replace stained and broken ceiling tile. 10. Tape, float, texture and paint all walls, doors, Yiames, window and window stools, (including closet under stairwell). Room "A1" ]. Build new insulated wall as shown on plan between rooms "A1" & "A" with new solid core door, frame and entry lock, (paint door and frame). 2. Build short wall to seal off rear passage to room "B". 3. Install new light switch and rewire two existing light fixtures to new switch, (relocate fixture as necessary). 4. Install new A/C supply grill. 5. Install three new electrical outlets. 6. Install sound board and sheetroek on all walls, (including new walls). 7. Replace door to closet with new solid core door, frame and lever entry hardware. 8. Demo old work station. 9. Provide and install new heavy duty 4' stainless ADA handrail on wall, (exact location to be determined). 10. Remove cabinet from closet under stairs. 11. Replace stained and broken ceiling tile. 12. Tape, Ioat, texture and paint all walls, doors, frames, window and window stools, (including closet under stairwell). z Room "B" 1. Install new solid core door, frame and lever passage hardware between rooms "B" & "A", (paint door and frame). 2. Install new light switch and rewire all lights in room "B" 3. Build short wall to seal off rear passage to room "AI". 4. Replace wood on 3 window stools and paint. 5. Repair damaged sheetrock around windows. 6. Replace door between rooms "B" & "C" with new door and lever passage hardware. 7. Replace door between rooms "B" & "G" with new door and lever passage hardware. 8. Replace stained and broken ceiling tile. 9. Tape, float, texture and paint all walls, paint all doors, frames, windows and window stoo]s. Room "C" 1. Replace door between rooms "C" & "B" with new door and lever passage hardware. 2. Install new lever passage hardware on door between rooms "C" & "G". 3. Install blind on existing window between rooms "C" & "G". 4. Replace stained and broken ceiling tile. 5. Tape, float, texture and paint all walls, doors, frames and windows. Room "D" 1. Replace door and frame with new door, frame and lever passage hardware. 2. Replace stained and broken ceiling tile. 3. Tape, float, texture and paint all walls, door and frame. Room "E" 1. Demo wood threshold at case opening. 2. Replace stained and broken ceiling tile. 3. Tape, float, texture and paint all walls, doors and frames. Room "F" 1. Replace door with new door and lever passage hardware. 2. Replace stained or damaged ceiling tile. 3. Tape, float, texture and paint all walls, phone board, door and frame. Room "G" I. Replace exterior metal entry door with new door, frame, door closer, lever entry lock and dead bolt, weather stripping and threshold, (paint inside and out of new door). 2. Repair sheetrock around exterior door and all windows. 3. Demo all counter tops and support legs, (patch holes). 4. Cut-out damaged sheetrock between exterior door and first window. 5. Replace wood on 4 window stools and paint. 6. Replace stained or damaged ceiling tile. 7. Tape, float, texture and paint all walls, door, frames, windows and window stools. Hallway "H" 1. Repair sheetrock around exterior door. 2. Replace exterior door with new metal door, (including door, frame, weather stripping, ADA threshold, lever entry lock and deadbolt lock). 3. Install new filter return air grill. 4. Replace exit light over exterior door with new exit/emergency combo fixture. 5. Install new lever passage hardware on door to a/c closet. 6. Replace stained or damaged ceiling tile. 7. Tape, float, texture and paint all walls, doors (inside and out of exterior door) and frames. Men Restroom "I" 1. Install new exhaust fanlight combo in ceiling over urinal. 2. Replace exhaust tan light combo over toilet with new combo fixture. 3. Replace electrical outlets over counter top with gfci outlets. 4. Install new lever passage hardware on door. 5. Replace door to toilet stall with new door and lever privacy hardware. 6. Replace stained or damaged ceiling tile. 7. Replace 2 faucets with ADA lever faucets. 8. Tape, float, texture and paint all walls, doors and frames, (cabinet base to remain "as is" no painting). Women Restroom "J" 1. Install new exhaust fanlight combo in ceiling above toilet. 2. Demo toilet paper holder and patch holes. 3. Replace faucet with new ADA lever faucet. 4. Replace missing glass lenses on wall light fixture. 5. Replace door with new door and lever privacy hardware. 6. Replace electrical outlet with gfci. 7. Replace stained or damaged ceiling tiles. 8. Tape, float, texture and paint all walls, door and frames, (cabinet base to remain "as is" no painting). Room "K" 1. Replace door between room "K" and stairwell with new solid core door, fi•ame and lever passage hardware. 2. Replace exit light with new exit/emergency combo fixture. 3. Demo old alarm keypad and speaker control, (patch holes). 4. Repair sheeh~ock around windows and replace wood on 1 window stool. 5. Replace stained or damaged ceiling tile. 6. Tape, float, texture and paint all walls, doors, frames and window stool. Room "L" 1. Demo counter top and supports, (patch holes). 2. Repair sheetrock around windows and replace wood on 2 window stools. 3. Install new lever passage hardware on door. 4. Replace stained or damaged ceiling tile. 5. Tape, float, texture and paint all walls, doors, frames, windows and window stools. Room "M" Replace door with new door and lever passage hardware. Repair sheetrock around windows and replace wood on 2 window stools. Replace stained or• damaged ceiling tile. 4. Tape, float, texture and paint all walls, doors, frames and window stools. Room "N" Replace door with new door and lever passage hardware. Repair sheetrock around windows and replace wood on 2 window stools. Cabinets to remain "as is" no painting. Replace stained or damaged ceiling tile. Tape, float, texture and paint all walls, door, frame and window stools, (no painting on cabinets). Room "O" 1. Replace door with new door and lever passage hardware. 2. Repair small return air grill and paint grill. 3. Replace stained or damaged ceiling tile. 4. 'T'ape, float, texture and paint all walls, door and frame. Hallway "P" 1. Replace exterior metal exit door with new door, frame, door closer, lever entry lock and dead bolt, weather stripping and threshold, (paint inside and out of new door). 2. Replace 2 exit lights with new exit/emergency combo fixtures. 3. Install 1 new 2' x 4' lay-in light fixture, (wire to existing switch). 4. Demo T-stat lock box and patch holes. 5. Replace stained or damaged ceiling tile. 6. Tape, float, texture and paint all walls, doors (inside and out of exterior door) and frames. Room "Q" 1. Replace door acrd frame with new door, frame and lever passage hardware. 2. Repair sheetrock around windows and replace wood on 3 window stools. 3. Cabinet to remain "as is" (no painting). 4. Replace stained or damaged ceiling tile. 5. Tape, float, texture and paint all walls, door, frame, windows and window stool. Room "R" 1. Build new insulated wall between room "R" & "R1 ", (install sound board on both sides of new wall). 2 Install one new electrical outlet on new wall. 3. Repair sheetrock around windows and replace wood on 2 window stools. 4. Replace door with new door and lever passage hardware. 4. Remove wood from floor. 5. Demo all counter tops and support legs, (patch holes). 6. Replace stained or damaged ceiling tile. 7. Tape, float, texture and paint all walls, doors, frames, windows a~td window stools. Room "Rl" 1. Build new insulated wall between room "Rl" & "R", (install sound board on both sides of new wall). 2 Install one new electrical outlet on new wall. 3. Repair sheetrock around windows and replace wood on 2 window stools. 4. Replace door and frame with new door, frame and lever passage hardware. Demo all counter tops and support legs, (patch holes). Replace stained or damaged ceiling tile. Pape, float, texture azid paint all walls, doors, frames, windows and window stools. Roont "S" 1. Demo all cabinets and shelving, (relocate to first floor, exact location to be determined). 2. Repair sheetrock around window and replace wood on 1 window stool. 3. Install lever entry hardware on door. 4. Install one new electrical outlet on back wall. 5. Replace stained or damaged ceiling tile. 6. Tape, float, texture and paint all walls, door, frame, window and window stool. Room "T" Demo old dishwasher, provide and install new dishwasher, (connect to plumbing and electrical), ($400.00 allowance for new dishwasher). Cook-top to remain. Replace sink with new stainless sink and new lever faucet, (connect to plumbing). Install new door, frame and passage hardware at case opening. 5. Repair sheetrock around windows and replace wood on 1 window stool. 6. Replace electrical outlets with gfci above counter top. 7. Replace stained or damaged ceiling tile. 8. Tape, float, texture and paint all walls, frames, window, window stool and inside and outside of all cabinets. Men Restroom "U" 1. Replace sink with new sink and lever faucet, (connect to plumbing). 2. Replace electrical outlet with gfci. 3. Install new exhaust fanlight combo in ceiling above urinal. 4. Replace fan with new exhaust fanlight combo in ceiling above shower. 5. Replace fan with new exhaust fanlight combo in ceiling above toilet. 6. Install lever privacy hardware on door to toilet. 7. Install lever passage hardware on main door to restroom. 8. Install lever passage hardware on door to water heater closet. 9. Replace stained or damaged ceiling tile. 10. Demo towel bars, patch holes, tape, float, texture and paint all walls, doors, frames and inside and outside of cabinets. Women Restroom "V" 1. Replace sink with new sink and lever faucet, (connect to plumbing). 2. Replace missing wall mount light fixture lenses. 3. Replace existing fan with new exhaust fan. 4. Install lever privacy hardware on door. 5. Replace stained or damaged ceiling tile. 6. Tape, float, texture and paint all walls, doors, frames and inside and outside of cabinets. Exterior of building 1. Install ADA approved ramp at side door to room "H". 2. Demo existing sidewalk and install new 5' side sidewalk fi•om parking area to new ramp on side door to room "H". 3. Remove 2 speakers and security box from ceiling on front porch, (outside of room "A"), replace broken porch light, (patch holes and paint ceiling). 4. Install weather stripping and thresholds on all exterior doors. 5. Paint all exterior doors. 6. Sand, prime and paint rear exterior stairwell. 7. Repair existing eye wash station as necessary. General Notes: 1. Patch all holes, tape, float, texture and paint all walls, doors, frames, windows and window stools, (color selection by tenant). 2. Install wall mounted door stops on all doors. 3. Replace all hardware with ADA lever style hardware, (see room details for type of hardware to install). 4. Demo all old fire extinguisher and brackets, (patch holes and paint). 5. Demo all old smoke detectors. 6. Demo all wood base. 7. Demo all motion sensors, keypads, window contacts, security ship on windows and exposed wire from old alarm system. 8. Remove any surface mounted phone/data and cable lines, (leave above ceiling). 9. Remove all ceiling mounted speakers. 10. Replace all stained or damaged ceiling tile. 11. Replace any missing insulation in ceiling. 12. Repair sheetrock damage around all windows and replace wood on all damaged window stools, (paint wood on all stools). 13. Replace missing or damaged electrical plates. 14. Clean all A/C supply grills, (paint any that will not clean). 15. Insta112 new 7 % ton condensers and replace 4 furnaces, install 2 new T-stats. 16. Install new stainless steel toilet paper holder at each toilet location. 17. Install blinds on all windows. 18. Tenant responsible for any fire alarm, fire suppression (extinguishers), security system, card key entry system, phone/data equipment wiring and antennas. 19. Tenant responsible for all floor covering, (to include: provide and install all vinyl flooring, carpet, base and floor preparation per specifications listed below or equivalent). 20. Flooring Specifications: Vinyl Composition Tile (VCT) "Tarkett Expressions" standard VCT 12" x 12" tiles. 1/8" thick. Carpet "Shaw Contract Group" direct glue down 26oz nylon with unitary back. Wall Base carpeted areas to have 4" carpet base per specifications above, VCT area to have "Roppe" vinyl 4" base, 1/8" thick. 2 2 3 0 a F r 1 a r t 6 O C !a F a 1 e o 0 0 u r 1 e v a r d 10 z 2 3 O S S a e r ~ a a t n o d 9 a F B 0 0 u u ~ 1 e v a r