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HomeMy WebLinkAboutContract 19139-AD1 CITY SECRETARY CONTRACT NO. C� .13C ' (� ADDENDUM TO LEASE AGREEMENT WITH CASA MANANA MUSICALS, INC. TO OPERATE CASA MANANA THEATER (CITY SECRETARY CONTRACT NO. 19139) This Addendum ("Addendum") is made and entered into by and between the CITY OF FORT WORTH, a Texas home-rule municipal corporation("Landlord"), acting by and through Susan Alanis, its duly authorized Assistant City Manager, and CASA MANANA, INC. f/k/a CASA MANANA MUSICALS, INC., a Texas non-profit corporation ("Tenant"), acting by and through Wally Jones, its duly authorized president. RECITALS A. On June 2, 1992 (via M&C C-13393), the City Council authorized execution of a lease agreement with Casa Manana Musicals, Inc. for the operation of the Casa Manana Theatre ("Theatre"), and the parties executed Lease Agreement with Casa Manana Musicals, Inc. to Operate Casa Manana Theater (City Secretary Contract No. 19139) ("Lease"), under which Lease Tenant agreed to operate and maintain the Theatre and the improvements at no cost to the Landlord. B. On November 8, 1994 (via M&C G-10875), the City Council authorized a payment for a new boiler at the Theatre, and the parties executed Addendum to Lease Agreement between the City of Fort Worth and Casa Manana Musicals, Inc., under which Tenant agreed to repay Landlord for the cost of boiler replacement. C. On October 22, 2002 (via M&C G-13779), the City Council authorized approval of extensive renovation plans to the Theatre to convert the Theatre from a"theatre-in-the- round" configuration to a modified thrust/proscenium stage, and the Theatre financed the renovation through a capital campaign and a loan. D. On August 9, 2007 (via M&C C-22293), the City Council authorized an amendment to the Lease for the construction by Landlord, at Landlord's expense, of a fence along the western border of the Theatre, and extended the Term (as defined in the Lease) to December 31, 2020 due to Tenant meeting a threshold of expenditures on the Theatre as set forth in the Lease. E. On October 12, 2012 (via M&C C-25892), the City Council authorized an interlocal agreement with Tarrant County for the reconstruction of the Theatre's parking lot, with the City contributing over$80,000.00. F. On November 11, 2014 (via M&C C-27074), the City Council authorized an amendment to the Lease to extend the term to December 31, 2024 pursuant to the request of Theatre, so that the Term coincides with the terms of a loan that is being transferred to another financial institution. Addendum to Lease with ®FF�CIpL.RECOR® Casa Manana Musicals,Inc. Page 1 of 4 CITY SECRETARY FT. VWORTH,TX G. On November 8, 2016 (via M&C C-27987), the City Council authorized an agreement with Theatre for cost sharing in the design and construction of 2,200 additional square feet of office space, 1,400 square feet of storage, and a new 1,400 square foot theater (collectively, the "Improvements"), with the City reimbursing half of the cost of the improvements up to the amount of$409,000.00. AGREEMENT In consideration of the mutual covenants contained in this Amendment, Landlord and Tenant agree to amend the Lease as follows: 1. Lease. The parties agree that the Improvements to be constructed pursuant to this Addendum shall be subject to all terms and conditions of the Lease, as amended, except as set forth herein. In the event of any conflict between the Lease, as amended, and the Addendum, this Addendum shall control. All terms and conditions of the Lease, as amended, are ratified and remain in full force and effect. 2. Improvements. Prior to entering into any contract for the construction of the Improvements, CMI agrees to obtain approval of the design plans for the Improvements from the Director of Property Management. The Improvements constructed at Casa shall substantially conform to the approved design plans. The Improvements shall be constructed by contractors selected by competitive bidding procedures pursuant to Chapter 252 of the Local Government Code. CMI shall obtain, at its sole cost and expense, all necessary permits, licenses, and approvals for the design and construction of the Improvements. Once construction of the Improvements commences, CMI shall use good faith efforts to ensure the diligent and timely completion of the Improvements. All other terms and conditions of the Lease relating to Improvements not in conflict with this Addendum, including but not limited to Section 3.2, Liens and Bonds, remain in full force and effect. 3. Funding. CMI shall be solely responsible for obtaining any and all necessary third-party financing for the construction of the Improvements. Following the issuance of a certificate of occupancy for all Improvements, City agrees to reimburse CMI for 50% of actual design and construction costs, up to a maximum reimbursement amount of Four Hundred Nine Thousand and no/100 Dollars ($409,000.00). Reimbursement shall be paid by City to CMI upon the submission by CMI to City of proof of expenditures in a sufficient form and substance, as determined by City in City's sole reasonable discretion. 4. Insurance. In addition to the insurance required by the Lease, as amended, CMI shall obtain the following insurance during the construction of the Improvements: Generally. Tenant shall procure or require Tenant's Contractor to procure and maintain at all times during the Term, in full force and effect, the following policies of insurance: (i) statutory worker's compensation insurance for all of the Contractor's employees and all workmen on the Leased Premises performing construction of the Discretionary Improvements, (ii) commercial general liability Addendum to Lease with Casa Manana Musicals,Inc. Page 2 of 4 insurance, (iii) business automobile insurance, (iv) builder's risk insurance, and (v) environmental impairment liability (EIL) and pollution liability insurance. The commercial general liability insurance policy and the automobile liability insurance policy shall be primary to all other insurance maintained by Lessee or Lessor and shall be non-contributory and shall be written for not less than the limits of liability as follows: a. Commercial General Liability: $2,000,000 each occurrence; $3,000,000 general aggregate per project; $3,000,000 product/completed operations aggregate; and $2,000,000 personal and advertising injury. b. Business Automobile Liability: $1,000,000 each accident on a combined single limit basis. Coverage shall be for"Any Auto"owned,non-owned,and hired. C. Worker's Compensations As required by law. $1,000,000 Part B: Employer's Liability d. Environmental Impairment Liability(El"and Pollution Liability: 2,000,000 per occurrence 2,000,000 aggregate 4.01 Umbrella or Excess Liability. If insurance policies are not written for specified coverage limits, an Umbrella or Excess Liability insurance for any differences is required. Excess Liability shall follow form of the primary coverage. 4.02 Additional Insured. The City, its officers, employees and volunteers shall be named as an Additional Insured on all applicable insurance policies. 4.03 Waiver of Subrogation. The insurance shall include a waiver of rights of recovery (subrogation)in favor of the City of Fort Worth. SIGNATURE PAGE TO FOLLOW i I Addendum to Lease with Casa Manana Musicals,Inc. Page 3 of 4 This Addendum shall be effective on TENANT: CASA MANANA, INC., a exas non-profit corporation B 9F Fo y Wally Jon President and c ive Producer LANDLORD: -CITY OF FORT WORTH, a Texas municipal corporation A ST: By: �---� ` ,ccs `7►� Jesus J. Chapa ��7 ity Secretary Assistant City Manager VP,,ROV_VD.AS TO FORM AND LEGALITY: enior Assistant City Attorney OFFICIAL RECORD Addendum to Lease with CITY SECRETARY Casa Manana Musicals,Inc. FT.WORTH,TX Page 4 of 4 Contract Compliance Manager: By signing I acknowledge that I am the person responsible For the monitoring and administration of this contract, including Ensurin all performance and reporting requirements. Nam o Employee C< -� e'c Title Lj Addendum to Lease with Casa Manana Musicals, Inc. Page 5 Additional Page for Contract Compliance Manager