HomeMy WebLinkAboutContract 35577LEASE
STATE OF TEXAS §
COUNTY OF TARRANT §
I 1 > 6 IA I
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NO
THIS AGREEMENT ("Lease") is agreed to effective the 1st day of July, 20073 by and
between the City of Fort Worth ("Lessor"), acting by and through its City Manager, Charles
Boswell, and The Hertz Corporation ("Lessee"), acting by and through its duly authorized Staff
Vice President of Real Estate.
WITNES SETH:
WHEREAS, Lessor is the owner and operator of an office building and attached parking
garage known as the Municipal Parking Garage ("Garage"); and
WHEREAS, Lessee seeks to lease from Lessor office space and parking spaces in the
Garage for a term of one (1) year, commencing on the 1st day of July, 2007;
agree:
NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS:
That for and in consideration of the mutual agreements in this Lease, Lessor and Lessee
1.
A. Lessor leases to Lessee a ground level area in the Garage that contains
approximately 914 square feet at 917 Taylor Street, Fort Worth, Texas ("Store Premises").
Further, Lessor agrees to lease to Lessee six (6) contiguous parking spaces in Level lA, and
eleven (11) non-contiguous parking spaces on the 6th floor of the Garage (collectively, the
"Parking Premises"). Lessor shall, at its expense, supply to the Store Premises and keep in good
working order all electrical, heating, plumbing, water, sewer, and air conditioning systems.
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Lessee will provide its own janitorial services. Lessee, at its expense, has the right to make
alterations to the Store Premises, with the prior written reasonable approval of Lessor.
B. The Leased Premises shall be only used for the operation of a car rental facility.
2.
2.1 The term of the Lease shall be one (1) year, commencing on the 1st day of July,
2007, (the "Commencement Date") and ending on the 30th day of June, 2008, (the "Expiration
Date") for a monthly rental rate of $25838 (based on $14.96 per square feet per year for office
space and $100 per parking space per month). Lessee shall have the right to exercise one or
more options to extend the Lease as provided below.
Option 1 - An option to extend for one (1) year, the year to commence on the 1st
day of July, 2008, and end on the 30th day of June, 2009 for a monthly rental rate
of $2,868 (based on $15.34 per square feet per year for office space and $100 per
parking space per month).
Option 2 - An option to extend for one (1) year, the year to commence on the 1st
day of July, 2009, and end on the 30th day of June, 2010 for a monthly rental rate
of $2,898 (based on $15.93 per square feet per year for office space and $100 per
parking space per month).
Option 3 - An option to extend for one (1) year, the year to commence on the 1st
day of July, 2010, and end on the 30th day of June, 2011 for a monthly rental rate
of $2,928 (based on $16.13 per square feet per year for office space and $100 per
parking space per month).
O tip on 4 - An option to extend for one (1) year, the year to commence on the 1st
day of July, 2011, and end on the 30th day of June, 2012 for a monthly rental rate
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of $2,960 (based on $16.54 per square feet per year for office space and $100 per
parking space per month).
2.2 The options to extend the Lease shall be exercised by written notice from Lessee
to Lessor received by Lessor at least sixty (60) days before termination of the then current term
of the Lease.
2.3 Rent shall be due and payable on the lst day of each month during the term of the
Lease as provided in Section 2.4. Failure to pay the rent by the 25th day of each month shall
result in automatic termination of the Lease if Lessor has given Lessee written notice of the
failure to pay rent by the 20`�' day after rent is due.
2.4 Rent shall be delivered to 311 W. lOth Street, Fort Worth, TX 76102.
3.
3.1 It shall be the duty of the Lessee to park all Lessee's cars only in spaces leased by
Lessee. Lessee shall never park in or allow any of its vehicles to obstruct any driveway or ramp
in or to the Garage.
3.2 Lessee shall have the right to vacuum its vehicles on the roof of the Garage;
provided, however, that Lessee shall be responsible for controlling any trash or debris from
cleaning. Lessor shall supply the electricity reasonably needed by Lessee to vacuum its vehicles.
4.
If, prior to the expiration of the initial term hereof or any option exercised, Lessee vacates
the office space in the Garage, Lessee agrees to pay to Lessor the sum of $3,000 per month for
each month, or any part of any month, remaining on such term.
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5.
Lessee, at its expense, has the right to erect and display signs that comply with the Code
of the City of Fort Worth and that are compatible with all signs affixed to the Garage, however,
Lessee agrees to remove the signs upon termination of the Lease.
6.
During the life of this Lease, Lessee has the exclusive authority to conduct a car rental
business at the Garage.
7.
Lessee agrees that, at its expense, it will keep and maintain the Store Premises in good
condition, except that Lessor shall make any and all structural repairs to the Garage unless such
repairs are necessitated as a result of Lessee's negligent and/or willful conduct. Lessee agrees to
make all non-structural interior repairs necessary or as reasonably requested by Lessor to prevent
the Store Premises from deteriorating in value or condition, except for normal wear and aging
consistent with normal office usage. Lessor shall have the right, through its agents and officials,
to make inspections of the Store Premises upon reasonable notice and thereafter make reasonable
recommendations to Lessee about the Store Premises. In this connection, Lessee agrees that it
shall, within forty-five (45) days from the date of Lessor's recommendations, begin the
recommended repairs. If Lessee fails to undertake the recommended repairs within forty-five
(45) days, Lessor may, upon reasonable notice to Lessee, undertake the repairs it deems
necessary, and the reasonable cost of the repairs by Lessor shall be paid by Lessee within fifteen
(15) days after notice that the repairs are completed.
8.1 Lessee further agrees to maintain and police the Store Premises and Parking
Premises and to keep them clean and sanitary and in compliance with all ordinances and
regulations of the City of Fort Worth (unless such compliance is a responsibility of Lessor,
required elsewhere herein). In this connection, Lessee shall allow Lessor's agents, upon
reasonable notice, to inspect at any time the Store Premises and Parking Premises for compliance
with this section; provided, however, that if Lessor reasonably believes that Lessee is unlawfully,
immorally, or offensively using the Store Premises and/or the Parking Premises, no notice shall
be required.
8.2 Lessee further agrees not to do or keep anything in the Store Premises or Parking
Premises that will increase the rate of fire insurance upon the Store Premises or Parking
Premises. Lessee also agrees not to injure, annoy, or interfere with the rights of any other tenants
of Lessor.
9.
Lessee covenants and agrees neither to permit the use of loud, abusive, foul, or obscene
language in the Store Premises and Parking Premises, nor to permit any unlawful, obscene, or
immoral acts on the Store Premises or
Parking P
remises
person using such language or performing such acts.
10.
furth
Lessee
er agrees to remove any
Lessee agrees to comply with all municipal, State, and Federal laws, except to the extent
such compliance is related to the Premises irrespective of Lessee's use (i.e., structural or A.D.A.
compliance) which will be complied with at Lessor's cost. Lessee further agrees that if Lessor
calls the attention of Lessee to any violation of municipal, State, or Federal law by Lessee, its
agents, licensees, or invitees, Lessee shall immediately desist from or correct such violation.
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11.
It is agreed that by execution of this Lease, Lessor does not waive or surrender any
governmental powers.
12.
Lessee shall, at its expense, obtain and keep in effect all licenses and permits necessary
for the operation of its business.
13.
Lessor shall not be responsible for the loss, damage, or destruction of property belonging
to Lessee, its agents, licensees, and invitees; and LESSEE INDEMNIFIES LESSOR AND ITS AGENTS
FROM ANY CLAIMS OF LOST, DAMAGED, OR DESTROYED PROPERTY IN, ON OR ABOUT THE
STORE PREMISES OR THE PARKING PREMISES AND IN CONNECTION WITH LESSEE'S BUSINESS
OPERATION THEREON, UNLESS SUCH LOSS, DAMAGE, OR DESTRUCTION OF PROPERTY IS
CAUSED BY THE SOLE NEGLIGENCE OF LESSOR.
14.
It is agreed that Lessee is an independent contractor and not an agent, representative, or
employee of Lessor; that Lessee shall have the exclusive right to control the details of its
operations and shall be responsible for the acts and omissions of its agents, contractors, or sub-
contractors; that the doctrine of respondeat superior shall not apply to Lessor and Lessee, its
agents, contractors, and sub -contractors; and that the Lease should not be construed as creating a
partnership or joint enterprise between Lessor and Lessee.
15.
LESSEE AGREES TO AND SHALL INDEMNIFY AND HOLD HARMLESS LESSOR AND ITS
AGENTS FROM AND AGAINST ANY AND ALL CLAIMS, LOSSES, DAMAGES, CAUSES OF ACTION,
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SUITS, AND LIABILITY OF EVERY KIND, INCLUDING ALL EXPENSES OF LITIGATION, REASONABLE
COURT COSTS, AND REASONABLE ATTORNEY'S FEES FOR INJURY TO OR DEATH OF ANY PERSON
FOR DAMAGE TO ANY PROPERTY ARISING OUT OF OR IN CONNECTION WITH THIS LEASE,
UNLESS SUCH INJURY, DEATH, DAMAGE, CAUSE OF ACTION, SUIT, OR LIABILITY ARISES OR IS
CAUSED BY THE LESSOR'S SOLE NEGLIGENCE.
16.
16.1 Without limiting the indemnification of the Lessor by the Lessee, the Lessee shall
not commence any business under this Lease until it has obtained the insurance required under
this section and the insurance has been reasonably approved by the Lessor. The insurance shall
be of the following types in the respective minimum amounts:
Commercial General Liability
$1,000,000 each occurrence
$2,000,000 aggregate
The insurance policy shall not exclude the contractual liability coverage and limits of coverage
shall be dedicated and available to claims arising from this Lease agreement only.
Automobile Liability
$1,000,000 each accident
*The policy shall be endorsed to cover any auto."
Garage Keeper's Liability $200,000 or
a limit equal to approximately fifty percent (50%) of the
average value of vehicles on any one level of the Leased
Premises at a given time, and which are in the care,
custody, and control of Lessee.
The insurance coverage shall be maintained throughout the term of the Lease or any renewal
thereof, and shall not be cancelled, modified, or altered without prior written notice to the
Lessor. Upon the signing and return of this Lease, a Certificate of Insurance shall be furnished
to the Lessor as evidence that the required insurance coverage has been obtained. The Certificate
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shall contain the provision that the insurance shall not be cancelled, modified, or altered without
thirty (30) days' prior written notice to the Lessor.
16.2 Lessor shall be shown as an additional insured as its interests may appear on all
insurance required by this Agreement. Policies shall provide Lessor thirty (30) days' prior
written notice of cancellation, non -renewal, alteration or modification.
16.3 Certificates of Insurance shall be furnished to Lessor documenting coverage as
specified herein. Failure on the part of Lessor to request such documentation shall not be
construed as a waiver of any requirements contained herein. Lessee may self -insure subject to the review
and acceptance by Lessor of Lessee's self-insurance deductible liTrats, which shall not be unreasonably
withheld.
17.
17.1 Except for failure to pay rent in a timely manner, which shall be governed by
Section 2.3, Lessor shall give Lessee written notice of any default hereunder. Lessee shall begin
to cure such default within five (5) business days from the date of receipt of such notice of
default and complete such cure within thirty (30) calendar days from the date of receipt of notice;
provided, however, if such default cannot be cured within such thirty (30) days, Lessee shall give
Lessor written notice and shall complete such cure as quickly as reasonably possible. Failure to
commence a cure and/or to complete same as provided herein shall entitle Lessor to terminate
this Lease without further notice. Upon such termination, Lessee shall immediately vacate the
Store Premises and Parking Premises and Lessee shall make no claim of any kind against Lessor
for termination.
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17.2 If Lessee fails to pay rent by 1" of each month in addition to the termination
provisions in Section 17.1 Lessee shall pay Lessor a $25 late payment fee.
18.
18.1 The acceptance by Lessor of fees for any periods after Lessee's default shall not
be deemed a waiver of any of Lessor's rights to cancel this Lease for Lessee's breach. No
waiver of default by Lessor of any of the terms of the Lease to be observed by Lessee shall be
construed to be a waiver of any subsequent default by Lessee of any of the terms of the Lease.
18.2 Lessee further agrees at the end of the term of the Lease to deliver to Lessor the
Store Premises, Parking Premises and all improvements thereon in good and vacant condition,
except for reasonable wear and aging consistent with normal usage, and except for repairs to be
performed by Lessor as required elsewhere herein.
19.
Lessee agrees that it shall have no power to do any act or make any contract that may
create a lien on the Garage and any contract or lien created shall be void. If any lien is created or
filed against the Garage for services performed on Lessee's behalf or at Lessee's request, Lessee,
at Lessee's expense, shall have the lien discharged within thirty (30) days after the filing thereof;
anA Lessee's failure to discharge the lien shall constitute a breach of this Lease.
20.
Notices under this Lease addressed to Lessor shall be sent by certified mail addressed to:
City of Fort Worth
Department of Transportation and Public Worlcs
1000 Throckmorton Street
Fort Worth, Texas 76102
Notices under this Lease addressed to Lessee shall be sent by certified mail addressed to:
The Hertz Corporation
G�
225 Brae Boulevard
Park Ridge, New Jersey 07656
Attention: Staff Vice President, Real Estate
Any party to this Lease may designate in writing any changes in their addresses by giving written
notice to the other party.
21.
Lessee agrees that if any proceedings in bankruptcy or insolvency are instituted by or
against Lessee, and the same shall not be discharged within thirty (30) days of filing the Lessor
inay, at its option, declare the Lease terminated; and upon such declaration, Lessee agrees to give
immediate possession to the Lessor of the Store Premises and Parking Premises.
22.
Lessee agrees that it shall not sublet or assign any part of its rights, privileges, or duties
under the Lease without the prior written approval of the Lessor's City manager, and any
attempted assignment without the prior written approval of Lessor shall be void.
23.
Lessor and Lessee agree that venue for any suit or cause of action shall be in Tarrant
County, Texas, and construed under Texas law.
24.
If the Store Premises shall be wholly or partially damaged or destroyed by fire or other
cause through no fault of Lessee, Lessee shall give prompt notice thereof to Lessor, and Lessor
may rebuild, repair and restore the same at Lessor's cost and expense to the condition, as nearly
as practical, as they were immediately prior to such casualty. Notwithstanding the foregoing, if
at the time of such casualty Lessee determines, in its reasonable judgment, that it would take
more than ninety (90) days for Lessor to repair damage to the Store Premises or make the
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Parking Premises available for Lessee use, then Lessee may terminate this Lease on at least thirty
(30) days' prior written notice to Lessor. Until the same shall have a completely rebuilt, repaired
and restored Store Premises and Parking Premises, all rent, if any, shall be apportioned and if not
paid, abated, and if paid, refunded, according to the part of the Store Premises and Parking
Premises thereafter usable by Lessee for the purposes for which they were used immediately
prior to such damage or destruction; provided, however, that if any building demised hereunder
shall be damaged or destroyed by fire or other cause during the last year of the term or any
extended term hereof to the extent that more than fifty percent (50%) of the aggregate square
foot area demised hereunder shall not be usable, then either party shall have the right on at least
thirty (30) days' prior written notice to the other, to terminate this Lease as of the date set forth in
said notice, with the same force and effect as if said date were the date originally fixed for the
termination of the life of this Lease. In any such case, any excess rent and additional rent, if any,
paid by Lessee shall be refunded by Lessor to Lessee. If the parties are unable to agree as to the
rent or additional rent to be paid or refunded, or as to the usable square foot area remaining, they
agree that the dispute shall be submitted, determined and settled by arbitration as in this Lease
set forth; provided, however, that if Lessor gives the notice of termination, the same shall be
ineffective and the obligations of the parties hereunder shall continue in full force and effect if
Lessee, prior to the date of termination set forth in Lessor's notice, shall notify Lessor, in
writing, that Lessee is exercising its option, if any, to extend or renew the term of this Lease for
the period of the option immediately following the normal expiration period of the then current
term or extended term Lease.
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25.
25.1 A. LESSEE HEREBY AGREES TO DEFEND, INDEMNIFY, AND HOLD HARMLESS
LESSOR FROM AND AGAINST ANY ENVIRONMENTAL LIABILITIES AND COSTS ARISING OUT
OF: (I) ANY RELEASES OR THREATENED RELEASES OF HAZARDOUS MATERIALS AT OR
FROM THE STORE PREMISES CAUSED BY LESSEE'S OPERATIONS ON THE STORE PREMISES;
AND (II� ANY VIOLATIONS OF ENVIRONMENTAL LAWS THAT ARE CAUSED BY LESSEE'S
OPERATIONS ON THE STORE PREMISES. THIS INDEMNITY SHALL SURVIVE TERMINATION OF
THIS LEASE.
B. LESSOR AGREES THAT LESSEE SHALL HAVE NO LIABILITY OR
RESPONSIBILITY FOR ANY CONDITION (INCLUDING ANY HAZARDOUS MATERIALS OR ANY
RELEASE EXISTING IN, ON OR UNDER THE STORE PREMISES OR THE PARING PREMISES,
OR THE BUILDING OF WHICH THEY FORM A PART OR THE LAND ON WHICH EITHER IS
LOCATED, FOR THE PERIOD PRIOR TO LESSEE'S OCCUPANCY OF THE STORE PREMISES OR
THE PARKING PREMISES IN SEPTEMBER 1979.
25.2 For the purposes of this section, the following definitions apply:
"Environmental Actions " refers to any complaint, summons, citation, notice, directive
order, claim, litigation, investigation, judicial or administrative proceeding, judgment, letter or
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other communication from any governmental authority or any third party involving violations of
environmental laws or releases of hazardous materials from the Store Premises.
"Environmental Laws " includes the Comprehensive Environmental Response,
Compensation and Liability Act ("CERCLA"), 42 U.S.C. 9601, et seq., as amended; the
Resource Conservation and Recovery Act ("RCRA"), 42 U.S.C. 6901, et seq., as amended; the
Clean Air Act ("CAE"), 42 U.S.C. 7401, et seq., as amended; the Clean Water Act ("CWA"), 33
U.S.C. 1251, et seq., as amended; the Occupational Safety and Health Act ("OSHA"), 29 U.S.C.
655, et seq., and any other Federal, State, local or municipal laws, statutes, regulations, rules or
ordinances imposing liability or establishing standards of conduct for protection of the
environment.
"Environmental Lien "means any lien, security interest, charge or other encumbrance for
Environmental Liabilities and Costs incurred by a governmental authority or any third party.
"Environmental Liabilities and Costs "means any monetary obligations, losses, liabilities
(including strict liability), damages, punitive damages, consequential damages, costs and
expenses (including all reasonable out-of-pocket fees, disbursements and expenses of counsel,
out-of-pocket expert and consulting fees and out-of-pocket costs for environmental site
assessments, remedial investigation and feasibility studies), fines, penalties, sanctions and
interest incurred as a result of any Environmental Action filed by any governmental authority or
any third party which relate to any violations of Environmental Laws, Remedial Actions,
Releases or threatened Releases of Hazardous Materials from or onto the Store Premises.
"Hazardous Materials" shall include any element, compound, or chemical that is
defined, listed or otherwise classified as a contaminant, pollutant, toxic pollutant, toxic or
hazardous substance, extremely hazardous substance or chemical, hazardous waste, special
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waste, or solid waste under Environmental Laws; petroleum and its refined products;
polychlorinated biphenyls; any substance exhibiting a hazardous waste characteristic, including
but not limited to, corrosiveness, ignitability, toxicity or reactivity, as well as any radioactive or
explosive materials; and any raw materials or building components, including but not limited to,
asbestos -containing materials and manufactured products containing hazardous substances.
"Release "means all actions taken to clean up, remove, remediate, contain, treat, monitor,
assess, evaluate or in any other way address Hazardous Materials in the indoor or outdoor
environment; prevent or minimize a Release or threatened Release of Hazardous Materials so
they do not migrate, endanger, threaten or endanger public health or welfare or the indoor or
outdoor environment; perform pre -remedial studies and investigation and post -remedial
operation and maintenance activities; or any other actions authorized by 42 U.S.C. 9601.
"Renaeclial Actio�a "means all actions taken to clean up, remove, remediate, contain, treat,
monitor, assess, evaluate, or in any other way address Hazardous Materials in the indoor or
outdoor environment; prevent or minimize a Release of Hazardous Materials so they do not
migrate, endanger, threaten to endanger public health or welfare or the indoor or outdoor
environment; perform pre -remedial studies and investigations and post -remedial operation and
maintenance activities; or any other action authorized by Al U.S.C. 9601.
26.
Lessor and Lessee each represent that no broker was used to bring about this Lease. If
any person shall assert a claim to a fee, commission or other compensation on account of alleged
employment as a broker or finder or for performance of services as a broker or finder on behalf
of Lessor or Lessee in connection with this Lease.
27.
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Lessor covenants that Lessee shall peaceably and quietly have, hold, and enjoy the Store
Premises and the Parking Premises for the initial term and any option term provided for herein.
2$
For the We of this Lease, Lessee shall be responsible' for any assessment levied as a result
of Lessee's operations'hereunder, which shall be paid o the assessing entity by the due date.
29.
Lessor agrees to procure and maintain policies of insurance for the insurable replacement
cost of all buildings demised hereunder, excluding excavations and foundations, with extended
coverage endorsement. Said policies shall be adjusted exclusively with Lessor and losses
payable thereunder shall be paid solely to Lessor or to the mortgagee, if any, as their respective
interests may appear; it being expressly intended that such insurance companies not be required,
in any event, to make their checks payable to Lessee as one of the payees.
30.
30.1 Lessor hereby agrees to waive any and all rights of recovery against Lessee
relating to damage sustained to the building known as the Garage and Store Premises and insured
contents thereof only to the extent such damage is covered under Lessor's commercial property
insurance policy and to the extent of the subrogation condition in Lessor's commercial property
contract, general conditions section. However, such waiver of subrogation shall not extend to
Lessor's losses within deductible limits or self-funded/retained risk limits.
30.2 Lessor's waiver of subrogation shall not extend to liability claims of property
damage and bodily injury liability claims and lawsuits arising out of or in connection with the
Lease, the Store Premises and the building to the extent Lessor's insurance program is self -
funded.
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30.3 Lessor agrees to obtain a relative endorsement to its property insurance policy to
the extent such endorsement is available and imposes on Lessor no additional premium cost or a
nominal cost, as deemed by Lessor.
30.4 Lessee hereby mutually agrees to the same waiver of subrogation terms in favor
of the Lessor as such terms are contained in this paragraph and section.
31.
Lessee shall have the right to immediately ternzinate this Lease in the event Lessor takes
any action which would make the operation of a car rental agency within the Store Premises
illegal.
32.
This Lease constitutes the entire agreement of the Lessor and Lessee, and it supersedes
any prior oral or written agreement about the leasing of the Store Premises and the Parking
Premises.
ATTEST:
kssidtant City Secretary
APPROVED AS TO FORM AND LEGALITY:
Assistant
Date:
CITY OF FORT WORTH
Marc A. Ott
A_sisrant City Manager
Title: 4WC T
Date:
THE HE'ICAZ uvIf r RATION
By:
Name: Sim n H.P. Ellis
Title: Staff Vice PresiUVsV- Properties
Date:
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City of Fort Worth, Texas
DATE: Tuesday, JUIy 24, 2007
LOG NAME: 20HERTZLEASE
REFERENCE NO.: **C-22261
Authorize Execution of a One -Year Lease, and Four Extension Options, with Hertz Corporation for
Office Space and Parking Spaces at the Municipal Parking Garage located at 917 Taylor Street
RECOMMENDATION.
It is recommended that the City Council authorize the City Manager to execute an annual lease with the
Hertz Corporation at an annual rate of $34,056, with four extension options, for office and parking space in
the Municipal Parking Garage for Hertz car rental operations.
DISCUSSION:
The Hertz Corporation (Hertz) currently occupies 914 square feet of office space in the Municipal Parking
Garage located at 917 Taylor Street. This proposed lease provides for the lease of office and parking
spaces at an annual lease rate of $34,056 ($2,838.00 per month: Parking $1,700, Office $1,138).
The term of the lease is one year beginning on July 1, 2007, with four optional one-year extensions (the last
of which terminates June 30, 2012). The lease would renew from year-to-year upon receipt of a written
notice from Hertz to the City at least 60 days prior to expiration of the then -current lease.
The City retains the right to increase the rate as specified in the lease agreement for each of the four
optional one-year extensions.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that the Transportation and Public Works Department Parking Fund is
responsible for the collection and deposit of the funds from this lease agreement.
TO Fund/Account/Centers FROM Fund/Account/Centers
PE59 442052 0208500 $13.656.00
PE59 442042 0208500 20 400.00
Originating Department Heado Robert Goode (7804)
Additional Information Contact. Randy Burkett (8774)
Logname: 20HERTZLEASE Page 1 of 1