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HomeMy WebLinkAboutContract 52993 CITY SECRETARY . rr%flTRACTNO., AA, 4 LAKE WORTH RESIDENTIAL LEASE AGREEMENT This LAKE WORTH RESIDENTIAL LEASE AGREEMENT ("Lease") is entered into by and between Robert Omweri("Tenant")and City of Fort Worth, a Texas home rule municipal corporation("Landlord"). WHEREAS, Landlord entered into a ground lease ("Lease") on February 1, 1982 with Lonnie C. Stephens, Sr. and Marion M. Stephens,the original Tenant under the Lease Agreement for property located at 9886 Lake Haven Circle, with a legal description more particularly described as Lot 11A,Block 25, Lake Worth Leases Addition,Fort Worth, Tarrant County TX(the"Leased Premises"), said Lease attached hereto as Exhibit"A' WHEREAS,the Lease was terminated by operation of law through a bankruptcy proceeding by the previous owner of the improvements located on the Leased Premises;and WHEREAS, the current owner of the improvements located on the Leased Premises obtained the improvements through a purchase subsequent to the bankruptcy without knowledge that the ground lease with the City had been terminated; WHEREAS,the parties desire to enter into this lease to provide the Tenant with the legal right to access the improvements owned by Tenant and to occupy the Leased Premises; NOW THEREFORE,in consideration of the mutual agreements herein and other good and valuable consideration,the parties agree as follows: 1. Term. Landlord leases to Tenant and Tenant leases from Landlord the Leased Premises on the terms and conditions set forth herein. The term of the Lease is shall be for eighteen (18) months ("Lease Term"), commencing E—_ , X�i Q and expiring on I ,2021. 2. Consideration. Tenant shall pay rent to the City of Fort Worth for the Leased Premises in the sum of$5,400.00("Lease Fee")for said rent payable in 18 equal installments of$300.00 due on the first of each month. Payment in full must be made to City of Fort Worth on the first of each month, unless such day is on a weekend or holiday on which the offices of the City of Fort Worth are closed, in which case payment must be made the following business day. — ---- - event that the Tenant or his Assignee is adjudicated a bankrupt, said lease may be assigned as provided in Section 8, and any Assignee shall assume the duties and liabilities as set out. 14. Notice.Any notice hereunder must be in writing. Notice deposited or sent by nationally recognized overnight courier service, such as, but not limited to, Federal Express, by certified mail with return receipt requested. For purposes of notice, the addresses of the parties shall, unless changed as hereinafter provided, be as follows: To Landlord: To Tenant: City of Fort Worth Robert Omweri Lease Management PO BOX 670354 Property Management Department Dallas, TX,75367 900 Monroe,Suite 400 Fort Worth,TX 76102 With a copy to: With a copy to: City Attorney City of Fort Worth 200 Texas Street Fort Worth,TX 76102 SIGNATURES APPEAR ON FOLLOWING PAGE 3. Permitted Use. Tenant shall use the Leased Premises for the sole purpose of residential uses related to the residential improvements currently existing on the Leased Premises at the commencement of this Lease. 4. Expiration of Lease. A. Any buildings, improvements, additions, alterations, and fixtures (except furniture and trade fixtures) constructed, placed, or maintained on any part of the Leased Premises during the lease term are considered part of the real property of the Landlord and must remain on the Leased Premises and become Landlord's property when the Lease terminates. B. Except when the Lease terminates through a sale of the Leased Premises to Tenant, Tenant shall remove all personal property, furniture, machinery, or equipment in, under, or on the Leased Premises before the termination date. Before the Lease terminates, Tenant must repair any damage to any buildings or improvements on the Leased Premises resulting from the removal. Any such items not removed by the lease termination date will become Landlord's property on that date. 5. Ownership of Improvements. Upon expiration of this Lease through the closing of the sale of the Leased Premises under the Purchase and Sale Agreement, Tenant shall retain all right, title, and interest in the improvements on the Leased Premises; however, upon the expiration of this Lease without a closing of the sale of the Leased Premises under the Purchase and Sale Agreement,all right, title, and interest in the improvements on the Leased Premises shall vest in Landlord without further payment by Landlord to Tenant for the improvements, and Tenant shall not have any right to enter upon the Leased Premises. 6. Acceptance of Leased Premises. Tenant covenants and agrees to accept the Leased Premises in their present condition, finds them suitable and in good condition for the purposes intended; and further agrees that it is thoroughly familiar with such condition by reason of a personal inspection and does not rely on any representations by Landlord as to the condition of the premises or their suitability for the purposes intended. 7. Inspection by Landlord. Upon not less than 48 hours prior notice and in a manner so as to not unreasonably interfere with the use of the Leased Premises by Tenant, Landlord or its authorized agents may enter upon the Leased Premises, for any purpose connected with the performance of Landlord or Tenant's obligations hereunder, in order to inspect the performance of Tenant's obligations under this Agreement,or to inspect safety compliance or in order to determine compliance with all applicable laws. In case of an emergency or if necessary to ensure the health, safety and welfare of the public, Landlord may enter upon the Leased Premises at any time and without notice, but in a manner so as to not unreasonably interfere with the rights of Tenant to the Leased Premises. This shall not constitute a waiver by Landlord of the performance of its governmental functions and Tenant agrees that in the performance of its governmental functions, representatives of the City of Fort Worth may enter onto the Leased Premises at any time that they would otherwise be allowed. 8. Assignment. Tenant may assign this Agreement to an individual or individuals, upon prior written approval by Landlord,which may be withheld for any reason.Any attempt to assign without approval will be void, and any such attempt shall cause immediate termination of this Agreement. Prior to proper notice being given and granted by the City,Tenant must be current on all rent and improvement taxes owed.By assigning this Lease the assignee must expressly accept,assume,and agree to perform all terms, conditions and limitations to be kept and performed by Tenant under this Lease. 9. Indemnity. (a) TENANT SHALL AND DOES AGREE TO INDEMNIFY, PROTECT, DEFEND AND HOLD HARMLESS CITY, CITY'S OFFICERS, AGENTS, SERVANTS, AND EMPLOYEES (COLLECTIVELY, "INDEMNITEES") FOR, FROM AND AGAINST ANY AND ALL CLAIMS, LIABILITIES, DAMAGES, LOSSES. LIENS, CAUSES OF ACTION, SUITS, JUDGMENTS AND EXPENSES, (INCLUDING REASONABLE COURT COSTS, REASONABLE ATTORNEYS' FEES AND REASONABLE COSTS OF INVESTIGATION), OF ANY NATURE, KIND OR DESCRIPTION TO THE EXTENT ARISING OR ALLEGED TO ARISE BY REASON OF INJURY TO OR DEATH OF ANY PERSON OR DAMAGE TO OR LOSS OF PROPERTY (1) RELATING TO THE USE OR OCCUPANCY OF THE LEASED PREMISES BY TENANT, ITS EMPLOYEES, AGENTS AND TENANTS OR (2) BY REASON OF ANY OTHER CLAIM WHATSOEVER OF ANY PERSON OR PARTY OCCASIONED OR ALLEGED TO BE OCCASIONED BY ANY ACT OR OMISSION ON THE PART OF TENANT OR ANY TENANT, EMPLOYEE, DIRECTOR, OFFICER, SERVANT, OR CONTRACTOR OF TENANT OR (3) BY ANY BREACH, VIOLATION OR NONPERFORMANCE OF ANY COVENANT OF TENANT UNDER THIS AGREEMENT (COLLECTIVELY, "LIABILITIES"), EXCEPT TO THE EXTENT ARISING OUT OF OR RESULTING FROM THE NEGLIGENCE OR WILLFUL MISCONDUCT OF ANY INDEMNITEE. IF ANY ACTION OR PROCEEDING SHALL BE BROUGHT BY OR AGAINST ANY INDEMNITEE IN CONNECTION WITH ANY SUCH LIABILITY OR CLAIM, TENANT , ON NOTICE FROM CITY, SHALL DEFEND SUCH ACTION OR PROCEEDING, AT TENANT'S EXPENSE, BY OR THROUGH ATTORNEYS REASONABLY SATISFACTORY TO CITY. THE PROVISIONS OF THIS PARAGRAPH SHALL APPLY TO ALL ACTIVITIES OF TENANT WITH RESPECT TO THE USE AND OCCUPANCY OF THE LEASED PREMISES, WHETHER OCCURRING BEFORE OR AFTER THE COMMENCEMENT DATE OF THE LICENSE TERM AND BEFORE OR AFTER THE TERMINATION OF THIS AGREEMENT. THIS INDEMNIFICATION SHALL NOT BE LIMITED TO DAMAGES, COMPENSATION OR BENEFITS PAYABLE UNDER INSURANCE POLICIES, WORKERS' COMPENSATION ACTS, DISABILITY BENEFIT ACTS OR OTHER EMPLOYEES' BENEFIT ACTS. (b) IT IS AGREED WITH RESPECT TO ANY LEGAL LIMITATIONS NOW OR HEREAFTER IN EFFECT AND AFFECTING THE VALIDITY OR ENFORCEABILITY OF THE INDEMNIFICATION OBLIGATION UNDER THIS SECTION 9, SUCH LEGAL LIMITATIONS ARE MADE A PART OF THE INDEMNIFICATION OBLIGATION AND SHALL OPERATE TO AMEND THE INDEMNIFICATION OBLIGATION TO THE MINIMUM EXTENT NECESSARY TO BRING THE PROVISION INTO CONFORMITY WITH THE REQUIREMENTS OF SUCH LIMITATIONS, AND AS SO MODIFIED, THE INDEMNIFICATION OBLIGATION SHALL CONTINUE IN FULL FORCE AND EFFECT. 10. Waiver of Liability. ALL VEHICLES AND ALL PERSONAL PROPERTY WITHIN VEHICLES USING THE PREMISES, WHETHER PURSUANT TO THIS AGREEMENT OR OTHERWISE SHALL BE AT THE RISK OF TENANT ONLY,AND NO INDEMNITEES SHALL BE LIABLE FOR ANY LOSS OR THEFT OF OR DAMAGE TO PROPERTY OF TENANT,ITS EMPLOYEES, AGENTS, PATRONS, INVITEE, OR TO OTHERS, REGARDLESS OF WHETHER SUCH PROPERTY IS ENTRUSTED TO EMPLOYEES OF CITY OR SUCH LOSS OR DAMAGE IS OCCASIONED BY CASUALTY, THEFT OR ANY OTHER CAUSE OF WHATSOEVER NATURE, UNLESS DUE IN WHOLE OR IN PART TO THE NEGLIGENCE OF ANY INDEMNITEE. 11. Taxes,Insurance,Utilities. Tenant agrees to be responsible for the payment of all utilities that come due and payable during the term Tenant occupies the Leased Premises. Additionally, Tenant agrees to pay all taxes as they come due. Tenant shall insure the Leased Premises in amounts sufficient to fulfill its obligations in this Lease,and shall pay all such insurance premiums as required so that there is no lapse insurance. 12. Liens and Mortgages. Tenant shall not permit any leasehold or other financing that may encumber Tenant's rights under this Lease without first obtaining the prior written consent of Landlord. Tenant will keep the Leased Premises free and clear of all construction, mechanic's, materialman's, laborer's and supplier's liens, resulting from construction done by or for Tenant. The interest of Landlord in the Leased Premises shall not be subject to liens for improvements made by Tenant. Any lien filed by any contractor, materialman, laborer or supplier performing work for Tenant shall attach only to Tenant's interest in the Leased Premises. Tenant agrees to indemnify, defend and hold harmless Landlord from and against any and all costs and liabilities (including attorneys' fees and expenses) and any and all construction, mechanic's, materialman's, laborer's or supplier's liens arising out of or pertaining to any improvements or construction done by Tenant. If any construction, mechanic's, materialman's, laborer's or supplier's lien is ever claimed, fixed or asserted against the Leased Premises in connection with any such Tenant work, Tenant shall, within 10 days after receipt by Tenant of notice of such lien, discharge same as a lien either by payment or by posting of any bond as permitted by law. If Tenant shall fail to discharge any such lien, whether valid or not, within 10 days after receipt of notice from Landlord, Landlord shall have the right, but not the obligation, to discharge such lien on behalf of Tenant and all costs and expenses incurred by Landlord associated with the discharge of the lien,including,without limitation,attorneys'fees,shall constitute Additional Rent hereunder and shall be immediately due and payable by Tenant. 13. Successor. In the event of death of a Tenant, Tenant's successors and estate shall succeed to Tenant's interest under this Lease, and those entitled by law or succeed to the Tenant's interest in the lease shall continue to enjoy the rights and benefits hereunder of the deceased Tenant. In the event that the Tenant or his Assignee is adjudicated a bankrupt, said lease may be assigned as provided in Section 8, and any Assignee shall assume the duties and liabilities as set out. 14. Notice.Any notice hereunder must be in writing. Notice deposited or sent by nationally recognized overnight courier service, such as, but not limited to, Federal Express, by certified mail with return receipt requested. For purposes of notice, the addresses of the parties shall, unless changed as hereinafter provided, be as follows: To Landlord: To Tenant: City of Fort Worth Robert Omweri Lease Management PO BOX 670354 Property Management Department Dallas, TX, 75367 900 Monroe,Suite 400 Fort Worth,TX 76102 With a copy to: With a copy to: City Attorney City of Fort Worth 200 Texas Street Fort Worth,TX 76102 SIGNATURES APPEAR ON FOLLOWING PAGE In witness whereof,the parties hereto have caused this Lease to be executed as the day and year first above set forth. LANDLORD: TENANT: CITY OF FO T WORTH By: By: AV4":&Cwkl tG Kevin Gu Robert Omweri Interim Assistant City Manager Date: la hK Date: 10/16/2019 CONTRACT COMPLIANCE MANAGER By signing,I acknowledge that I am the person responsible for the monitoring and administration of this contract, including ensuring all performance and reporting requirements. N e: Ricky Salazar Title: Sr.Land iAgent u Date: (D � I � � 2� 1 APPROVED AS TO FORM AND LEGALITY: By: Y�d u bf 011 VZ)444 d,— Leann Guzman Senior Assistant City Attorney Date: �0123II�' ATTEST: IFh d By: :' arY K ySe f. City Secretary Date: V Gl(� _ Form 1295: Not required Contract Authorization: M&C: - 01 q ID1151 M FFTWORTH,TX RECORD ETARY STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME,the undersigned authority,personally appeared Kevin Gun, Interim Assistant City Manager, known to me to be the person and officer whose name is subscribed to the foregoing Agreement, and acknowledged to me that the same was the act of the City of Fort Worth, a home-rule corporation, and that he/she executed the document as the act of said corporation for the purposes and consideration expressed therein and in the capacity stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of 20L� MARIA S.SANCHEZ � ,: .. My Notary ID#2255490 X. '� Expires December 19,2021 Not Public I✓of, STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME,the undersigned authority,personally appeared Robert Omweri, known to me to be the person whose name is subscribed to the foregoing Lease, and acknowledged to me that the same was his act, and that he executed the document for the purposes and consideration expressed therein. GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of 1 "7c -c✓ , 20 iY ofDRICARDO SALAZAR II Notary Publlo-State of Texas Notary ID #128185792 Notary Public Commission Exp.FEB.25,2022 F IAL RECORD)SECRETARY ORTH, TX 10/17/2019 City of Fort Worth-File#:M&C 19-0239 Sign In Home Legislation Calendar City Council Departments Ili 0 Share I©RSS ] W Alerts ] Details Reports File #: M&C 19-0239 Version: 1 Name: Type: Land Consent Status: Passed File created: 10/10/2019 In control: CITY COUNCIL On agenda: 10/15/2019 Final action: 10/15/2019 Authorize Execution of a Ground Lease with Robert Omweri for City Land Under Residential Title: Improvements Owned by Robert Omweri at 9886 Lake Haven, Fort Worth, Texas in the Amount of$300 per Month. (COUNCIL DISTRICT 7) Attachments: 1. M&C 19-0239, 2. 9886 Lake Haven Site Map.pdf History(1) Text 1 record Group Export Date Ver. Action By Action Result Action Details Meeting Details Video 10/15/2019 1 CITY COUNCIL Approved Action details Meeting details Not available https://fortworthgov.leg istar.corn/Leg islation Detail.aspx?ID=4162937&GUID=1507C68F-DF76-48BB-8964-7040DF4305F5 1/1 City of Fort Worth, Texas Mayor and Council Communication DATE: 10/15/19 M&C FILE NUMBER: M&C 19-0239 LOG NAME: 21 9886 LAKE HAVEN LEASE SUBJECT Authorize Execution of a Ground Lease with Robert Omweri for City Land Under Residential Improvements Owned by Robert Omweri at 9886 Lake Haven, Fort Worth,Texas in the Amount of$300 per Month.(COUNCIL DISTRICT 7) RECOMMENDATION: It is recommended that the City Council authorize the execution of a lease agreement with Robert Omweri for City property located at 9886 Lake Haven, Fort Worth,Texas 76108 on which is located a residential home owned by Robert Omweri at a monthly rent of$300. DISCUSSION: On May 2,2018,the City of Fort Worth received notice that the original lease between the City and the Lessee of the City-owned property at 9886 Lake Haven was terminated by operation of law as a result of a bankruptcy proceeding involving the previous owner of the residential improvements located at 9886 Lake Haven. Robert Omweri purchased the improvements at a sale resulting from the bankruptcy without knowledge that the ground lease with the City had been terminated.As a result, Mr.Omweri has no long-term legal right to access the land on which his improvements are located. To resolve the legal access issues resulting from the sale of the improvements due to the bankruptcy, Staff recommends that the City enter into an eighteen month lease at current market value to provide Mr.Omweri with access and the ability to occupy the house on City property. Mr.Omweri will be eligible to purchase the leased land in accordance with current Lake Worth Sales Program approved by Council on November 8,2016 (M&C L-15964). No renewals or extensions are provided for in this lease. The Lease Terms are as follows: • Term Length: Eighteen(18)month term. • Base rent: Primary term is$300 per month This agreement is expected to contribute lease revenues of approximately$5,400.00 for the eighteen month term to the General Fund,Lake Worth Leases. This property is located in COUNCIL DISTRICT 7. A Form 1295 is not required because:This M&C does not request approval of a contract with a business entity. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that the Property Management Department is responsible for the collection and deposit of lease revenues due under the terms of this lease. Submitted for City Manager's Office by. Kevin Gunn 2015 Originating Business Unit Head: Roger Venables 6334 Jean Petr 8367 Additional Information Contact: Ricky Salazar 8053 t