Loading...
HomeMy WebLinkAboutContract 34432� ,,� ��-�i x_.i-•e � �y f i''`-��s�}�J�f` p�� U � 1l1� -r�� xl -�. I. � `i1'9 � ;(� , ��,�� .�_.�L/_`%y3� LEASE AGItEEMENT FOR OFFICE SPACE JAMES E. GUINN SCHOOL BUiLDING THIS LEASE AGREEMENT ("Lease") is entered into by and between the City of Fort Worth, ("Lessor") and the Taz•x•ant County College District ("Lessee"}. In considaration of the mutual covenants, pxomises and obligations contained herein, Lessor and Lessee agree as follows: 1. PROPERTY LEASED 1.1 Leased Area Lessor hereby leases to Lessee and Lessee hereby leases from Lessor approximately 1,376 square feet an the second floor designated as Suite No. 229 in the building known as the "James E. Guinn School" (`Building) located at 1150 South Freeway, Fort Worth, Texas and as depicted on Exhibit "A", attached hereto and hereby made a part of this Lease and which is signed or initialed by the parties foz• identification. Lessor reserves the right to re-assign space allocated to Lessee in the building, with reasonable notice to Lessee, if deemed necessary bq Lessor for highest and best use of the facility. 1.2 Buildin�Name Lessor shall have the right at any time and from time to time to change the Building Name. Z. TERM OF LEASE � The terrri o£ this Lease ("Term") shall be a period of 5 years, starting on July l, 2006 and expiring on June 30, 2011 unless terminated earliex as provided herein. 3. RENEWAL OF TERM 3.1. If Lessee pexfoxms and abides by all provisions and conditions of this Lease and is not in default, upon the expiration of the Initial Tertn of this lease, Lessee shall have 2 consecutive options to renew this Lease for terms of 5 years each ("Renewal Tezxn") at the rental rate for comparable space at the Suilding, which on tlae effective date af the Renewal Term complies with the then current Schedule of Rates and Charges published by the Lessor and under the same terms as set out in this lease; provided however, that if Lessee does not renew this Lease zn vc�riting for a Renewal Term, Lessee shall autoznatically waive zts right to renew this Lease. In order to exercise its option to renew this Lease for the second renewable term, Lessee shall notify Lessor in writing of its desire to renew this Lease no less than ninety calendar days prior to the expiration of the term then in effect. Page 1 Guinn Schoo] Lease Agreement "�I��1'l:.�Jc,-,l ,;�;:����;;� �� ',i ..a ��:,—�;,?a,', ,�„f,e �6 4��V1�L �t�'l�.�� �1, �'��ti:irl�V�, tlL�iS, 3.2 Tarmination Option. Lessee sha11 have the right and option {"Termination Option"), on any date ("Termination Date") which is an anniversary of the Commencement Date, to cancel this lease by delivexy of at least ninety (90) days prior written notice to Lessor or any shorter period of time n�utually agreed to by Lessee and Lessor, provided that Lessee timely pays the hereinaf-ter described Termination Payment to Lessor. The Termination Payment znust be paid in full to Lessor simultaneously with the delivery af such written notice of cancellation. Lessee sha11 not have the right to exercise the Termination Op�on if an Event of Defalut has occuned and is outstanding on the date Lessee delivers its notice of te��cnination to Lessor or on the Termination Date. So long as no sums are due and owing under this lease oz� the Termination Date, Lessee shall immediately vacate the Pxemises on the Texmznation Date in accordance with the terms of the Lease or as otherwise mutually agreed. For purposes hereof, the "Termination Payment" shall be one month's rent. 4. COMMON AREA The "Common Area" of the Building as zt shall exist frozn tizne to time sliall be that part of the Building designated by Lessor from tin�e to time for the comrnon use of all Lessees, including, but not lirnited to other facilities, elevators, stairs, tunnels, halls, lobbies, delivery passages, drinkin.g fountains, public toilets and the like, all of which shall be subject to the Lessor's sole manageinent and control and shall be operated and maintained in such manner as the Lessor, in his sole discretion, shall determine. Lessor reserves the right to change from time to tirne, the dimensions and locations of the Common Area. Lessee and its employees and in�vitees shall have the nonexclusive xight to use the Common .Axeas with the Lessor, other Lessees of the Building and other pexsons entitled to use the same. Use of the Common Area shall be subject ta such reasonable rules and regulations governing its use as the Lessor may fronn time to tinne prescribe. Lessee shall not take any action that would interfere with fihe rights of other persons to use the Common Area. Lessox znay temporarily close any part of the Common Area for such period as is reasonably necessary to make repairs or alterations. 5. RENT 5.1 Base Rental Rate As base xental for the lease and use of the Leased Area ("Base Rent"), Lessee shall pay Lessox, at the Building office, without demand and without deduction, abatement or setoif except as otherwise expxessly provided for herein, the sum of $12.52 per square foot per year of the I,eased Area of the Building. 5.2 Operating Expense Rental Rate In the event Operatin� Expenses {as hereinafter defined) of Lessor incu�:7red in connection with the Land and Building, of which the Leased Area are a part, shall for any calendar year during the Term of this Lease exceed the sum of the 2006 Base Year Actual Page 2 Guinn School Lease Agreement �. �-1, 11 s 0 j N,:� ^p�-�� �����,�JG`-,� '�:���'�.'u � �� �a"���7� ii�U7� ��� l ����� �� � �, �. <,. � n ��, `�;;�;,���I�, �l�l�, expenses, Lessee agrees to pay as additional rental Lessee's pro rata share ("Lessee's Shaxe"} as deternnined by Lessor of such Operating Expenses in excess of 2006 Base Year (`Bxcess Operating Expenses") of the Leased Area, such Excess Operating Expenses shall be capped at 8% of contz•ollable expenses. Controllable expenses do not include taxes and eleciricity. The terrn "Operating Expenses" as used herein shall include all costs and expenses of every kind and nature whatsoever incurred by Lessee in connection with the ownership, operation, and zz�zaintenance of the Building, the Land on which it is located and any areas adjacent to it, and the parking area and its surrou.nding area as well as amortization of any capital expenditure which are incuzred b� Lessor to attempt to effect in the reduction af operating expenses of tbe building or to keep the building in compliance with all governmenta.l rules and regulations; provided, however, only the following shall be excluded from Operating Expenses: cost of structural alterations. Lessee agxees, at Lessor's x•equest, to pay Lessee's Sba�re of E�cess Operating Expenses for the ensuing twelve (12} months, as estimated once a yeax by Lessor, in time and place provided in Section 5.2., each in an amount equal to one-twelfth (1/12) of Lessee's Share so estimated by Lessor. If this Lease commences on other tha�n the first day of a calendar year, or if this Lease expires oil other than the last day of a prorated accoxd'zng to ihe portion of the Terzn that occurs duxing such calendar year. At least thirty (30) days prior to the commencement of each calendar year during the Texm, cornmencing with the calendar year 200�, Lessor shall furnish Lessee a wxitten statement setting forth the estimated Lessee's Share for the following year and a staternent showing one-twelfth (1/12) of the amount of the estirnated Lessee's Share. If, as finally determined, Lessee's Share shall be greatex thaix or less than the aggregate of all installments so paid to the Lessor for such twelve (12) znonth period, then Lessee shall pay to Lessor the aznount of such underpayment within thirty (30) days of delivery of such statement, or the Lessor shall credit Lessee for the amount o� such overpayment, as the case may be. All Excess Operating Expenses shall be paid by Lessee in the proportion of 9.62°/a of the total. 5.3 Rent For all purposes under this Lease, "Rent" shall mean the Base Rent and Operatzng Expense Rental (including an.y additional rent and any adjustnnents io rent as provided in this Lease). All past due installments of Rent shall beax interest at the highest non- usurious rate chargeable by Lessor to Lessee from such date due until paid. Unless changed in accoxdance with Texas law, the applicable method of calculating the usury rate ceiling under Texas law shall be the indicated (weekly) rate ceiling, frozn t�rne to tinne in effect, as provided in Tex. Rev. Civ. Stat. Ann. Art. 5069-1.04, as amended. Page 3 Guinn Schaol Lease Agreement .. �, �� � �r �,:.,,-•^ _ 'u����.�]�`� �:���'�� ��p'�� ����� � !°���1 ��, ��.�`,J����w, ����, 7. USE Lessee agrees to use the Leased Area solely for the purposes of office space and/or education and training. The permitted use shall be off'xce use and or education and training. Lessee shall use the Leased Area %r no other purpose without the prior written consent of the Lessor. 8. MATNTENANCE� REPAIRS AND CONDITION OF AREA. 8.1. General Maintenance and Repairs by Lessee. Lessee agrees to keep and maintairz the Leased Area, including all fixtures installed iia a good, clean and sarutary condition at all times. Lessee covenants and agrees that it will not make or suffer any waste of the Leased Area. Lessor will at Lessor's own expense, malce all repairs necessaxy to prevent the deterioration in condition or value of the Leased Area, except those caused by fire or other casualty covered by insurance on the 13uilding under policies naming Lessor as the znsured. Lessee shall be responsible for all datnages caused by Lessee, its agents, servants, employees, contractors, subcontractors, licensees or invitees, and Lessee agrees to fully repair or oiherwise cure a11 such damages at Lessee's sole cost and expense under the supervision and with the approval of Lessox. Lessee agrees that, except as otherwise expressly provided herein, all impxovemez�ts, trade fixfiues, furnishings, equipment and other personal property of every kind ox description which may at any time be on the Leased Area shall be at Lessee's sole risk or at the sole risk of those claiming under Lessee. Lessor shall not be liable for any damage to such property or loss suffered by Lessee's business or business operations which xnay be caused by the buxsting, overflowing or leaking of sewer or steam pipes, or fron� water fiom any source whatsaever, or from any heating fxtiues, plumbin� �xtures, electxic wlres, noise, gas or odors, or from causes of any other matter. Upon termination of this Lease, Lessee will surrender and deliver up the Leased Area to Lessor in the sa;nne condition in which they existed at the commencemen# of the Lease, excepting only ordinary wear and tear and damage arising irozn any cause required hereunder to be repaired at Lessor's expense. 8.2. Insp,ection. Lessor shall have the right arzd privilege, through its officers, agents, servants ox employees, to inspect the Leased Axea a# any time. Lessor shall have the xight to perform any and all duties or obligations which Lessox is autliorized or required to do under the terms of this Lease or to perform its governmental duties.under federal, state or local rules, regulations and laws, including the Codes. Lessee will permit the Fire Marshal of the City of Fort Worth or authorized designees to inspect the Leased Axea at any time, and Lessee will comply with all xecommendations made to Lessee by the Fixe Marshal. ox authorized designee to bring the Leased Area into complianca with F3re Code and Building Code provisions, as such provisions exist or may hereafter be added ox amended. Lessee shall Page 4 Guinn Sehool Lease Agreement "�i������c'`:� 1 ������ ���i% �����?���� +n r� ^n � � •��1'���i��,�)�'U R� \`� ;'?: Jl' i U �L�; � maintain in a proper condition accessible �re extinguishers of a number and type approved by Fire Undervvriters for the particular hazard involved. Lessor shall provide Lessee with advance notice of inspeetion when reasonable under the citcumstances. 8.3. 1'ez�£ormance. If Lessee xs responsible under tbis Lease for any maintenance or repaixs, Lessor shall notify Lessee in writing and arrange for the maintenance and repair work to be completed within thirty (30) calendar days of receipE of such notice. Lessee will reunburse Lessor for the cost of the maintenance or repairs, and such reimburseznent will be due on the date of Lessee's next monthly rent payment following completion of the maintenance or repairs. 8.4. Environmental Remediation. To the best o� Lessox's knowledge, the Leased Area complies with all applicable federal, state and local envirorunenial laws and regulations (callectively "Environmenfal ]Laws"). Lessee has thoroughly inspected the Leased .Area and is fully advised of its or�m rights without reliance upon any representation made by Lessor concerning the environmental condition of th.e Leased Area. LESSEE COVENANTS AND AGREES THAT LESSEE, AT ITS SOLE COST AND EXPENSE, SHALL BE FULLY RESPONSXBLE FOR THE VIOLATXON OF ANY ENVIRONMENTAL LAWS` CAZiSED, IN Wl�OLE OR .IN PART, BY LESSEE, ITS OFFICERS, AGENTS, SER vANTS, EMPLOYEES, CONTRACTORS, SUBCONTRACTORS OR INVI'TEES. 8.5. Lessee's Acceptance of the Leased Area. Excepting "Punch List" items of which Lessee shall report to Lessor in writing within ten (10) days after the commencement date hereunder, Lessee acknowledges that it has inspected the Leased Area and Lessee's talcing possession of the Leased Area shall be conclusive evidence as against the Lessee that the Leased .Area were in good order and satisfactory condition when the Lessee took possession. No other promise of the Lessor to alter, remodel, repair or impzove the Leased Axea or the Building and no other representation xespecting the condition of the Leased Area or the Building have been made by Lessor to Lessee. 9. OBLIGATIONS OF LESSOR 9.1 Services Furnished Subject to the rules azad regulations to which re£erence is hereinai'-ter made, Lessor shall furnish Lessee, at Lessor's expense, except as provided in Paragraph 5.3. above, the following sezvices during the Term: (1) Air conditioning and heating in season, at such times as Lessor normaliy �urnisk►es these services to other Lessees in the Suilding and at such temperatures and in such amounts as are considered by Page 5 Guinn School Lease Agreemant IJITi1,�J;t�1� �6v�A1NJ ���'i� c��s�;�� ��«� 'fu� ;:�'`'�J�iU�� U�G�� Lessor to be standard, but such service outside narmal business hours and on Saturdays, Sundays and holidays shall be furnished only at Lessor's discretion and upon reasonable notification. Lessee shall bear the standard charges of Lessor therefore, which shall nevex be less thazi the cost thereof. (2) Hot and cold watex afi those points of supply provided for general use. (3) Standard building janitor service in and about the Building and the Leased Area, five days per week, and periodic window washing; however, Lessee shall pay the addztional costs attributable to the cleaning of improvements within the Leased Area otlier than building siandard improvements. (4) Elevators for ingress to and egress frozn the Building during such periods as are considered by Lessor to be standard. (5) Proper building stan.dard facilities to furnish sufficient electrical power for standard lighting, typewriters, dictating equipment, calculating machines and other xxaachines of similax low elect�ical consumption, but not iz�cluding electzicity required far electronic data processing equipment, special lightin� in excass of building standard, or any other item of electrical equipment which singiy consumes more than 0.25 kilowatts per houx at rated capacity or requires a voltage other than 120 volts single phase (architect needs to determine if this is adequate with all electrical, computex, etc. uses) Lessee shall pay to Lessor, monthly as billed, such charges as m�ay be separately metered or as Lessor's engineex may compute for any electrical service furnished to Lessee in excess of that stated above. (6) Replacement of fluorescent lamps in building standard ceiling mounted fixtuxes installed by Lessor a.nd incandescent bulb replacement in public areas. (7) For purposes of this lease normal business hours shall be 7:00 a.m. to 6:00 p,m. on weekdays, except holidays amd 8:00 a.m. to 3:00 p.m. on Satuxdays, except holidays. 9.2 No Eviction or Breach No interruption, nnoratorium or malfunction of any services or failure of any machinery or equiprrzent to operate for any cause whatsoever shall constitute an eviction or disturbance o£ Lessee's use and possession of the Leased A��ea or Building or a breach by Lessor of any of its obligations hereunder or render Lessor liable for damages or Page 6 Guinn School Lease Agreement n Nr ^^• ������l�a'L �����r��� r� ����' �����?� Il�� ��, ��:�������, ����, entitle Lessee to be relieved fram any of its obligations hereunder (including the obligation to pay Rent) or grant Lessee any xight of setoff ax recoupment. Tn the event of any such interruption, howe�ver, Lessor shall use reasonable diligence durin� normal business hotus to restoxe such service in any circumstances in which such restoration is within xeasonable control of Lessor and the interruption was not caused by Lessee's fault. Notwithstanding tlae foregoing, should an interruption of service for more than five (S) consecutive business days due to no fault of Lessee, then Lessee's rental shall abate to the extent any portion of the Leased Area is noi able to be leased. 9.3 Additional Services Should Lessee desire any additional services beyond those described in Paragraph 9.1 or rendition of any of such sez�vices outszde the normal titnes of Lessor for providing such services, Lessor may (at Lessox's option), upon reasonable advance notice from Lessee to Lessor, furnish such servicas and Lessee agrees to pay Lessor such charges as may be agxeed on between Lessor and Lessee, but in no event at a charge less than Lessor's actual cost plus overhead for the additional services provided. By way of illustration and not limitation, special equipment xequiring abnormal use of water or electx•icity used as a power soi,u•ce for data processing machines, including air conditioning costs therefore, large business machines and similar equipmeni af high electrical consumption charactezistics shall not be standard water consumption or electrical service, as the case may be, and the costs thereof shall be paid by Lessee. Lessee hereby agrees to cause, at its sale expense, separate meters for measuring units of consumption to be installed within the Leased Area if deiined sezvices conswnned by Lessee are n.ot standard, 10. ADDITIONS AND FIXTURES 10.1 Anproval Required Lessee will make no alteration, change, innprovement, repair, replacement or addition to the Leased Area without the prior written consent of Lessor which consent will not be unreasonably withheld or delayed. If Lessor grants such prior written consent, the worlc in such connection shall be at Lessee's expense but by woxlanen of Lessox ox workmen and contractors appraved in advance in writing by Lessor and in a manner and upon terms and conditions and at times satisiactory to and approved in advance in writing by Lessor. In any instance in whitch Lessor gra.n.ts such consent, Lessor may grant such consent contingent and conditioned upon Lessee's con�ractors, laborers, materialm,en and others ftunishing labor material for Lessee's job working in harm.ony and not interfering with any labor utilized by Lessor; Lessor's conh•actors or mechanics or by any othex Lessee or such other Lessee's contractors or mechanics; and i£ at any tirne such entry by one or more persans furnishing labor or znaterials for Lessee's work shall cause disharrr�ony or interference, the consent granted by Lessor to Lessee may be withdrawn upon forty-eight (48) hours vvritten notice to Lessee. Page 7 Guinn School Lease Agreement �;����'��J,;�� �d����l� 1����1'� ��l:��l��.�� '^^�Nj IU^I \^/ �krr�'IJ�1`.YYY ���Y � ��'r ' � � 10.2 Removal of Items Lessee may reznove its trade fixtures, of�ice supplies and movable of�ce furnitw•e and equipment not attached to the Building provided: (1) such xemoval is xnade prior to the termination of the Term; (2) Lessee is not in default of any obligation or covenant under this Lease at the time of such removal; and (3) Lassee prompt�y repairs all damage caused by such removal. All other property at the Leased Area and any altexation or addition to the Leased Area (including vvall-to-wall carpeting, paneling or other verall covexing) and any other article attached ar affixed to the flaor, wall or ceiling of the Leased Axea (any of which as stated above shall require Lessor's priar written consent) shall become the property of Lessor and shall rezz�ain upon and be surrendered with the Leased Area as part thereof at the tennination of ihis Lease, Lessee hereby waiving all rights to any payment or coznpensation therefore. If, however, Lessor so requests in �writing, Lessee vvill, prior to termination of this Lease, remove any and all alterations, additions, �'ixttu�es, equipment and property placed or installed by it or at its request in the Leased Area and will repair any damage caused by such removal. 11. ADDITIONAL OBLIGATIONS AND AGREEMENTS OF LESSEE. 11.1 The Lessee shall not exhibit, sell or offex for sale on the Leased Area or in #he Building any article or thing (except those articles and things essentially connected with tk�e stated use of fihe Leased Area by the Lessee) without the advance consent of Lessor. 11.2 The Lessee shall nafi display, inscribe, print, paint, maintain or aifix on any place in or aboui the Building any sign, notice, legend, direction, figure or advertise:m.ent, except on the doors of the Leased Area and on the Building directvey and then only such name(s) and mattex and in such color, size, style, place and materzals as shall izrsi have been approved by the Lessor. The listing of any name other than that of Lessee, whether on the doors of the Leased Area, on the Building directory or otherwise, sk�all not operate to vest any right ox interest in this Lease or in the Leased Area or be deemed to be the written consent of Lessor to any act of Lessee, it being expressly understood that any such listing is a privilege extended by Lessor revocable at will by written notice to Lessee. 11,3 The Lessee shall not advertise the business, profession or activities of the Lessee conducted in the Buildiz�g in any manner which violates the letter or spirit of any code of eihics adopted by any recognized association or arganization pertaining to such business, profession or activities and shall not use the name of the Building for azry purposes other than that of the business addxess of the Lessee and shall never use any picture or likeness af the Building in circulars, notices, advertisemer�ts or correspondence without the Lessor's consent. 11.4 No additional locks or sinnilar devices shall be attached to any door or window without Lessor's prior written consent. No keys for any door other than those provided by the Lessor shall be �nade. If more than two keys for one lock are Page 8 Guinn School Lease Agreement �, , - j _ v'��iN'1���1l-- -�f;�`y,,,��I.(1�� V 5tiS ��u���J�.NJ �3��� ����� ��1�� 7 Y� '��.�.I:J71`UYY� Y64�1� desired, the Lessor will pxovzde the same upon payment by the Lessee. All keys rt�ust be returned to the Lessor at the expiration or termination of this Lease. 11.5 All persons entering or leaving the Buiiding after hours on Monday through Friday, or at any time on Saturdays, Sundays or holidays, ma� be required to do so under such regulations as the Lessor may impos�. The Lessor may exclude or expel any peddler. 11.& Tk�e Lessee shall not overload any i�oor. The Lessor may direct the time and manner of delivery, routing and removal and the location of safes and other heavy articles. 11.7 Unless the Lessor gives advance written consent, the Lessee shall not install or operate any steam or internal combustion engine, boiler, tnachinery, xefrigerating or heating device or air-conditioning apparatus in or about the Leased Area or carry on any mechanical business therein or use the Leased Axea fox housing accommodations or lodging or sleeping purposes, or do any cooking therein or use any illuminaiion other than electric light or use or peimifi to be brought into �he Building any infla.mmable fluids suc}� as gasoline, kerosene, naphtha and benzene or any explosive, xadioactive rnaterials or other ai�ticles deemed extra hazardous to life, lzmb or property. The Lessee shall not use the Leased Area for any illegal or immoral pwposes. 11,8 The Lessee shall cooperate fully with the Lessor to assure the effective operation of the Building's air-conditioning system. 11.9 The sidewalks, halls, passages, exits, entrances, elevatoxs and stairways shall not be obstructed by the Lessee or used for any putpose other thaz� for ingress to or egress from its Leased Axea. The halls, passages, exits, entrances elevators, stairways and roo£ are not fox the use of the general public and the Lessor shall in all cases retain the right io control and prevent access thereto by all persons whose presence, in the judgment oi the Lessor, shall be prejudicial to ihe safety, character, reputation and interests of the Building and its Lessees. No Lessee and no employees or invitees of any Lessee shall go upon the roof or mechanical floor of the Building. . 11.10 Lessee shall not use, keep ox permit to be used or kept any foul or noxious gas or substance in the Leased Area, or perrrxit or suffer the Leased E1.rea to be occupied or used in a manner offensive or objectionable to the Lessor ox ather occupants of the Building by reason of noise, odors and/or vibrations, or interfeze in any way with other Lessees or those having business there, nor shall any aniznals ox birds be brought in or lcept in or about the Leased Area or the Building. 11.11 Lessee shall see that the doors and windows, if operable, of the Leased Area az�e closed and securely locked before leaving the Suilding and must observe strict care and caution that all water faucets or water appaxatus are entirely shut off Page 9 Guinn School I,ease Agreement "�i����T)��,.�� ������� ����1� ����?� ����� ,.-�,� U � `•;'r;'1,,,cypi ' �j� �q � '.: �✓'J:UlI� '�� � before Lessee or Lessee's employees leave the SuiIding and that all electricity shall likewise be carefully shut off so as to prevent waste or damage. For any default or carelessness Lessee shall make good alI injluies or losses sustained by other Lessees or occupants of the Building or Lessor. In addition to all other liabilities for breach. of anp covenant of this Section, the Lessee shall pay to the Lessor an amount equal to any incxease in insurance premiwns payable by the Lessor or any other Lessee in the Building, caused by such breach. 12. INSURANCE. 12.1. Tvues of Covexage and Limits. Lessee sball procure and maintai�n at a11 times, in full force and effect, a policy or policies of insurance as specified in this Section 13, naming the City of Fort Woz�tY� as an additzonal insured and covering all rislcs related to �the leasii�g, use, occupancy, maintenance, existence or location of the Area. Failuxe to maintain the required insurance may result in terminafiion of this lease at the discretion of the Lessor. Lessee shall obtain the following insurance coverage on an occuxrence basis and at the limits speci£'ied herein: • P�•o e • A. Fire an.d Extended Coverage shall be maintained by the insurance policy on all improvements and betterments at their full replacement cost limit; B. Insurance for Contents—Lessee shall be responsible for maintaining any policy of uasuxance that will insure against loss of property owxxed by Lessee that is located on the Leased Premises C. Commercial Genexal Liability Insuranee -$1,000,000.00 �er occurrence; $2,000,000 aggregate 12.2. Adjustxnents to Required Coverag�,e and Limits. Insurance xequirenaents, including additional types and lirnits of coverage �d iu�.cxeased lim.its on existing coverages, axe subject to change at Lessor's option, and Lessee will accordingiy comply with such new requirements within thii�y (30) days following notice to Lessee. 12.3. Certificates. As a condi.tion precedent to the effectiveness of this Lease, Lessee shall fuxnish Lessor with appxopriate certificates of insuramce signed by the respective insuxance companies as proof that it has obtained the types and amounts oi insurance covexa�e required hexein. Lessee hereby covenants and agrees that not less ihan thirty (30) days prior to ihe expiration of any insurance policy required hereunder, it shall provide Lessor with a Page 10 Guinn School Lease Agreement ;;'����;1�!� �s����� ���'ti� ��������' ��� �.�';JU°��7U� ��i�� new or renewal certificate oi insurance. In addition, Lessee slaatl, on demand, provide Lessor with evidence that it has znaintained such coverage in full force and eff'ect. 12.4. Additional Reguirennents. A. Additional Tns�,ued Endorsement: "The City of �'ort Worth are added as additional insured as respects operations an.d activities of, or on behalf of the named insured." Reasonably equivalent terms may be acceptable at the sole discretion of the Business Assistance Center. B. Lessee shall rz�aintain its insurance with underwriters authorized to do business in the State of Texas and vvhich are satisfactory to Lessor. The policy or policies of insuraz�ce shall be endorsed to covex all of Lessee's operations and to provide �liat no material changes in coverage, including, but not limited to, cancellation, te�mination, non-renewal or amendment, shall be made without thirty {30) days' prior �vritien notice to Lessor. 12.5 . Fire Or Other Casualtv If at any time during the Term, the Leased Area ar any portion of the Building or Common Area (as hereinafter deiined) sha11 be damaged or destroyed by fire or other casualty, then Lessor shall have the election to terminate this Lease rvithin 120 days fram the occurrence of such casualty or to repair and reconstruct the Com�non Area, the Leased Area arzd Building to substantially the same condition in which ihey existed immediately priox to such damage or destruction, except that Lessor shall not be requzred to repair or xeconstruct any personal property, furniture, trade fixtures or office equipment which is located in the Leased Area and removable by Lessee under the provisions of this Lease. In any of the aforasaid circumstances, Rent shall abate proportionally during the period and to the extent that the Leased Area axe un�t for use by Lessee in the ordinary conduct of its business. If Lessor has elected to repazr and restore the Leased Area to the extent stated above, this Lease shall continue in full %rce and effect and such repairs will be znade within a reasonable time thereafter (not ta exceed six m.onths) subject to delays arising from shortages o£ labox ox materials, acts of God, war or other conditions beyond Lessor's reasonable control. Should such repairs not be completed within such period, this Lease shall be terminated. In the event that this Lease is terminated as herein permitted, Lessor shall refund to Lessee any prepazd Rent (unaccrued as of the date of damage or destruction) plus Lessee's security deposit pxovided Lessee is in compliance wzth Paragraph 7 hereunder less any sum owing Lessor by Lessee. If Lessox has elected to repair and reconstruct the Leased Area to the extent stated above, then the Term shall be extended by a period of time equal to the period af such repair and reconstruction. Notwithstanding the provisions of Subparagz'aphs A. and B. of this Paragraph 10, if the Leased Area ox an.y other portion o� the Building be damaged by �re or othex casualty resulting from the fault or neglige�ce of Lessee or any of Lessee's agents, employees, Page 11 Guinn School Lease Agreement — - --= — �-- _ -�1�' '� r`'1 v��a�.:l;;'!� ',�'���J� �� ����rt' :� �,, � ���� r �,� 'f�� ``;�:,,;��!n', ���s\`� contractors, licensees or invitees, the Rent hereunder shall not be diminished during the repair of such damage and Lessee shall be liable to Lessox for the cost and expense of the repair aind restoration of ihe Leased Area or the Building caused thereby to the extent such cost and expense is not covered by insura�ace pxoceeds. 13. INDEMNIFICATION. AS A JUNIOR COLLEGE DISTRICT, LESSEE .HAS SOVEREIGN IMMUMTY FROM T�RT CLAIMS, OTHER TI�41V THOSE XNVOLVING M4TOR VEHICLES, UNDER THE LA. WS OF THE STATE OF TEXAS. SUBJECT TO THIS XMMUNITY, AND WITHOUT WA.IVING SAME, LESSEEAGREESAS FOLLOWS: LESSEE HEREBYASS�IMES ALL LIABILITYAND RESPONSIBILl'T�' FOR PROPERTY LOSS, PROPERTY DAMAGE AND/OR PERSONAL INJURY OF ANY KIND, INCLUDXNG DEATH, TO .ANY AND ALL PERSONS, OF ANY KIND OR CHARACTER, WHETHER REAL OR ASSERTED, ARl'SI'NG OUT OF OR IN CONNECTXON WITH ITS USE UND�R THIS LEASE OR WITH THE LEASXNG, MAINTENANCE, USE, OCCUPANCY, EXISTENCE OR LOCATtON OF THEAItEA, EXCEPT TO THE EXTENT CAUSED BY THE NEGLI'GENT ACTS` OR OMISSXONS OR INTENTIONAL MISCONDUCT OFLES,SOR. LESSEE COVENANTS AND AGREES TO, AND DOES HEREBY, INDEMNXFY, HOLD HARIVILESS AND DEFEND LESSOR, ITS OFFXCEItS, AGENTS, SERYANTS AND EMPLOYEES', FROM AND AGAINST A1VY AND ALL CLAIMS OR LAWSUITS FOR EITHER PROPERTY DAMAGE OR LOSS (INCLUDING �LLEGED DAMAGE OR LOSS TO LESSEE'S BUSINESS.AND ANY RESULTXNG LOST PROFITS) AND/4R PERSONAL INJURY, INCL UDING DEATH, TO ANYAND ALL PERSONS`, OFANY KIND OR C'HAItACTER, WHETHER REAL OR ASSERTED, ARISXNG OUT �F OR XN CONN.ECTION W.ITH THIS LEASE OR WITH THE LEASING, MAINTENANCE, USE, OCCUPANCY, EXISTENCE OR LOCATION OF THE AREA, EXCEPT TO THE EXTENT CAUSED BY THE NEGLXGENT ACTS OR OMISSXONS OR INTENTIONAL MISCONDUCT OF LESSOR. LESSEEASSUMESALL RESP�NSIB1'LITYANDAGREES TO PAYLESSOR FOR ANY AND ALL INJURY OR DAMAGE TO LESSOR'S PROPERTY WHICH ARISES OUT OF OR XN CONNECTION WITH ANY .AND ALL ACTS OR OMISSIDNS OF LESSEE, ITS OFFXCERS, AGENTS, EMPLOYEES, CONTRACTORS, SUBCONTRACTORS, LICENSEES, ,I1VirITEES, PATRONS OR TRESPASSERS, EXCEPT TO THE EXTENT CAIISED BY THE NEGLIGENT ACTS OR OMISSIONS OR INTENTXONAL MISCONDUCT �FLESSOR. LESSOR SHALL NOT BE RESPONSIBLE FOR INJ'U.RY TO ANY PERSON ON THE AREA OR FOR HARM TD ANY PROPERTY WHICH BEL�NGS TO LESSEE, ITS OFFIGERS, AGENTS, SERYANTS, EMPLDYEES, CONTRACTORS, SUSCONTRACTORS, LICENSEES, INVITEES �R PATRONS, AND WHICH MAY Page 12 Guinn School Lease Agreement �����lc;�� ������ ����� ����R���� r�, .`7`'' '.'i��n �L��, � BE STOLEN, DESTROYED aR IN ANY WAY DAMAGED; AND LESSEE HEREBY XNDEMNIFIES AND HOLDS HAR1lILESS' LESSOR, ITS OFFICER,S', AGENTS, SERYANTS AND EMPLOYEES FROM A1VD AGAINST .ANY AND ALL SUCH CLAIMS, EXCEPT TO THE EXTENT CAUSED SY THE NEGLIGENT ACTS OR OMISSI4NS OR INTENTI'ONAL MISCONDUCT' OFLESSOR. 14. ASSIGNMENT AND SUBL�T`TING. 14.1.. In General. Lessee shall not assign, sell, convey, sublease ar transfer any of its rights, privileges, duties or interests granted by this Lease without the advance written consent of Lessor. 14.2. Conditions oiApproved Assi¢nments and Subleases. If Lessor consents to any assigtunent or sublease, all texms, covenants and agreements set foz�h in this Lease shall apply to the assignee or sublessee, and such assignee or sublessee shall be bound by the terms and conditions oi this Lease the sazne as if it had originally executed this Lease, The failure or refusal of Lessor to approve a requested assignment or sublease shall not relieve Lessee of its obligations hereunder, including payment of rentals, �ees and other charges. 15. DEFAULT AND REMEDIES A. Notwithstanding anything to the contrary, this lease znay be terminated by Lessor with 48 hour written notice of terrt�ination, if Lessee causes an "Event of Default" (as hereinafter defined) to occur. B. Eaeh of the follovving aets or omissions of Lessee or occurrences shall constitute an "Event oi Default:" (1) �'ailure or refusal by Lessee to timely pay Rent or other payments hereunder, after having been notiiied in writing by Lessor that such rent ox othex due payments have not been made. (2) Failure to perform or observe any other covenant or condition of this Lease by Lessee to be performed or observed prior to the expiration of a pexiod of ten (10) days following written. notice to Lessee of such failure. (3) Abandonment or vacating of the Leased Area or any significant portion thereof for a period in excess of ninety (90) days. Page 13 Guinn School Lease Agreement , ������;lG�`�� ������ �'��1� ����G���.u°?� ��, ����������', ���3. (4) The filing or execution or occurrence of: A petition in bankruptcy or other insolvency proceeding by or against Lessee; or petition or answer seeking relief under any provision of the Bankruptcy Act; or an assi�nment for the benefit of creditors or connposition; or a petition or other proceeding by ox against the Lessee for the appointment of a trustee, receiver or liquidator of Lessee or any of Lessee's property; or a proceeding by any govexnmental authority for the dissolution or liquidation of Lessee. C. This Lease and the Term and estate hereby granted and the demise hereby made are subject to the limitation that if and whenever any Event of Deiault shall occur, Lessor may, at its option, in addition to all other rights and rennedies given hereunder or by law or equity, do any one ox moxe of the following: {1) Termiz�ate this Lease, in which eveni Lessee shall imznediately surrender possession of the Leased Area to Lessor. (2) Enter upon and take possession of the Leased Area and expel or remove Lessee any other occupant therefrom, with or without having terminated the Lease. (3) Alter locks and other security devices ai the Leased Area. D. E�ercise by Lessor oi any one or more remedies hereunder granted or othexwise available shall not be deemed to be an acceptance of surrender of the Leased Area by Lessee, whether by agreement or by operation of law, it beiz�g understood that such surrender can be effected only by the written agreement of Lessor and Lessee. N� such alteration of secuxity devices and no xenaoval or other exercise of dozninion by Lessor over the property of Lessee or others at the Leased Area shall be deemed unauthorized or constitute a conversion, Lessee hereby consenting, after any Event of Default, to the aforesaid exercise of daminion over Lessee's property within the Building. All claims for damages by reason of such re-entry andJor repossession and/or alteration of locks or other security devices are hereby waived, as are all claims %r damages by reason of any distress waxrant, forcible defiain.er proceedings, sequestration proceedings or other legal process. Lessee agrees that any re-entry by Lessor may be pursuant to judgment obtained in forcible detainer proceedings or other legal proceedings or wiihout the necessity for any legal proceedings, as Lessor may elect, and Lessor shall not be liable in trespass or otherwise. Page 14 Guinn School Lease Agreement �i�����1�� ������ ��p�� ���;�� ���� 9 U iv�'�� J: �� ��� �, e �• � E. In the event Lessor elects to terminate the Lease by reason of an Event of Default, then, notwithstanding such termination, Lessee shall be liable for and shall pay to Lessor at Fort Worth, Tarrant County, Texas, the sum of all Rent and other indebtedness accrued to the date of such termination, plus, as liquidated damages for such default and not as a penalty, an amount equal to the then present value of the Reni: reserved hereunder for the remaining portion of th.e Term (had such Terzn not been terminated by Lessor prior ta the date of expiration stated in Paxagraph 2) using a market present value discount factor to calculate the same. In the event Lessor elects to terminate the Lease by �•eason of an Event of Default, in lieu of exercising the rights of Lessor Luader the preceding paxagraph, Lessor may instead hold Lessee liabl8 for all Rent and ather indebtedness accrued to the date of such termination, plus such Reni and otl�er indebtedness as would othexwise have been required to be �aid by Lessee to Lessor during the �eriod following termination of the Tenn measured from the date of such termination by Lessor until the date of expiration stated in Paragraph 2(had Lessor not elecfied ta terminate the Lease on account of such Event of Default) diminished by any net sums thereafter received by Lessox through re-letting tha Leased Area durin� said period (after deducting expenses incurred by Lessor as provided in Subparagraph G hereofl. Actions to collect amounts due by Lessee provided for in this Paragraph lb may be brought frorn tznae to time by Lessor during the aforesaid period, on on.e or more occasions, without the necessity of Lessor's waiting until expiration of such period; and in no event shall Lessee be entitled to any excess of Rent (or Rent plus other sums) obtained by re-letting over and above the Rent provided for in this Lease. F. In the event Lessor elects to repossess the Leased Area without terminating the Lease, then Lessee shall be liable for and shall pay to Lessor at �ort Worth, Tar�-ant County, Texas, all Rent and other indebtedness accrued to the date o:f such repossession, plus Rent required to be paid by Lessee to Lessor during the remainder of the Term until the date of expiration of the Term as siated in Paragraph 2, diminished by any net sums thexeafter received by Lessor thxough re-letting the Leased Area during said period (aftex deducting expenses incurred by Lessox as provided in Subparagraph G hereo�. �n no eveni shall Lessee be entitlad to any Rent herein reserved. Actions to collect amounts due by Lessee as provided in this Paragraph 16.F. may be brought from tinne to time, on one or more occasions, without the necessity of Lessor's waiting until expiration of the Term. G. In the case of ax� Event of Default, Lessee shall also be liable for and shall pay to Lessor, at Fort Worth, Tarrant County, Texas, in addition to any sun� provided to be paid above: Broker's fees incurred by Lessor in Page 1 S Guinn School Lease Agreement �������f;'!� ���i��� ���'i� ���;?���� ��� !:�'��;�`�1:�n, ��i�, connection with re-letting the whole or any part of the Leased Area; the cost of removing and storing Lessee's or other occupant's property; the cost of repairing, altering, rexnodeling or otherwise putting the Leased Area inio condition acceptable to a new Lessee or Lessees; and all expenses incurred by Lessor in enforczng Lessor's remedies, including reasonable attorneys' fees. Past due Rent and other past due payments shall bear interest from nnaturity until paid at the highest non-usurious xate chargeable by Lessor to Lessee, calculated as set forth in Paragraph 5. hereof. H. In the event o#' termination or repossession of the Leased Area for an Evant of Default, Lessor shall attempt to re-let the Leased Area, ox any portion tihereof, or to collect Rent after re-let�ing I. If Lessee should fail to make payment or cure any Event of Default hereunder witkun the time herein permitted, Lessor, without being under any obligation to do so and without thereby waiving such default, �nay make such payment and/or remedy such other Event of Default for the account of Lessee (and enter the Leased Area for sucla purpose) and thereupon Lessee shall be obligated to, and hereby agrees to, pay Lessor, upon demand, as additional Rent herei.uider, all costs, expenses and disbursernents (including reasanable attor�neys' fees) incurred by Lessor in taking such rernedial action. J. In the event of any default by Lessor, Lessee's exclusive remedy shall be an action foz damages (Lessee hereby waiving the benefit of any laws granting the right to terminate this Lease, to a lien upon the pxoperty of Lessor and/or upon Rent due Lessor), but prior to any such action Lessee will give Lessor written notices specifying such de£ault with particulaxity and Lessor shall thereupon ha�e thirty (30) days (plus such additional xeasonable period as may be required an the exercisa by Lessor of due diligence) in which to cw:e any such default. Unless and until Lessor fails to so cuxe any default after such notice, Lessee shall not have any remedy or cause oi action by reason lhereof. All obligations of Lessox hereunder will be construed as covenants, not conditions, and all such obligations will be binding upon Lessor only during the period of its ownership of the Building and not thereaftex. Lessor sha11 have no coiporate liability for the perfoz�rn.ance of any obligations hereunder, recourse by any party for default against Lessor being liznited to Lessox's intexesi in the Building. The term "Lessor" shall mean only the owner oi the Building at the date of comrr�encement of the Term, and in the event of the transfer by such owrxer of its interest in the Building, such owxzer shall thereupon be released and dzscharged from all covenants and obligations of the Lessor thereafter accruing, but such covenants and obligations shall be binding Page 16 Guinn School Lease Agreement � "�i�����lw� ;��1�����- ��p'�% ���;����� ��, '.;�������:�n ����� ' � G�. � during the Term upon each new owner for the duration of such ownex's ownership. 16. LIENS. 16.1. Liens bv Lessee. Lessee acknowledges that it has no authoriiy to engage in any act or to make any contract that may create or be.the foundation fox any lien upon the property or interest in the property of Lessor. If any such puxported lien is created or filed, Lessee, at its sole cost and expense, shall liquidate an.d dzscharge the same wifihin thirty (30) days of such creation or filing. Lessee's failure to discharge any sueh purported lien shall constitute a breach of this Lease and Lessor may terminate this Lease immediately. However, Lessee's financial obligation to Lessor to liquidate an.d discharge such lien shall continue in effect following termination of this Lease and until such a time as the lien is d'zschaz•ged. I7. COMPLI.ANCE WI'I'H LAWS ORDINANCES RULES AND REGULATTONS. Lessee covenants and agrees that it shall not engage in any unlawrul use of the A.rea. Lessee fw�ther agrees that it shall not permit its officers, agents, servants, employees, contractoxs, subcontractors, patrons, licensees or invitees to engage in an.y unlawful use of the Area and Lessee immediately shall remove from the Area any person engaging in such unlawful activities. Unlawful use af the Area by Lessee itself shall constitute an imrnediate breach of this Lease. Lessee agrees to comply with a11 federal, state and local laws; all ordinances, rules and regulations o£ the City of Fort Worth and the City of Fort Worth Police, Fire and Health Departments. If Lessor notifies Lessee or any of its aff'xcers, agents, employees, contractors, subcontractors, licensees or invitees of any violaiion of such laws, ordinances, rules or regulations, Lessee shall immediately desist from and correct the violation. 18. NON-DISCRIMTNATION COVENANT. Lessee, for itself, its pexsonal representativas, successors in interest and assigns, as part of the consideration herein, agrees as a covenant running wi.th the land that no person shall be excluded from participation in or denied the benefits of Lessee's use of the Axea on the basis of xace, color, national origin, religion, handicap, sex, sexuaJ orientation or fanulial status. Lessee further agrees for iYself, its personal representatives, successors in interest and assigns that n.o pezson shall be excluded from the provision of any services on or in the construction vf any improvements or alterations to the Area on grounds of race, color, national origin, religion, handicap, sex, sexual oxientation or familial status. Lessee agrees ta iurnish its accommodations at�d to price its goods and sezvices on a fair and equal basis to all persons. Page 17 Guinn School Lease Agreement ,J����� ��!� '�s� "��� �I�� �������� ��� ������ ��; ��, ���. __�_- rf any clainz arises fro�n afa alCeged vrolation of this non-discrirninatlon covenant by Lessee, its peYsonal ►�epresentatives, successors in interest or assigns, Lessee agrees to indetn�iify Lessor and hoCd Lessor harmless. 19. LICENSES AND PERMITS. Lessee shall, at its sole expense, obtain and keep in effect all licenses and pernuts necassary for the operation of zts busiu�ess. 20. NO WA.�VER. The fa.ilure of Lessox to inszst upon the perfonmance of any term or provision of this Lease or to exercise any right granted herein sha11 not constitute a waiver of Lessor's right to insist upon appropriate performance or to assert any such right on any future accasion. 21. VENUE AND JURTSDICTION. Should any action, whether real or asserted, at law or in equity, arise out of the terms of this Lease or by Lessee's operations on the Area, venue for such action shall lie in state courts Iocated in Tarrant County, Texas or the United States District Court for the Northern District of Texas, Fort Worth Division. This Lease shall be constx-ued in accordance w�th the laws of the State o:f Texas, 22. ATTORNEYS' FEES. In any action brought by Lessor ox Lessee for the enfo�cement of the obligations of the other party under this Lease, the prevailing party shall be entitled to recover from the other party reasonable attorneys' fees arising irorn such action. 23. SE'V�RA,BILITY. If any provision of this Lease sha11 be held to be anvalid, illegaI or unenforceable, the validity, legality and enforceability of the remaining provisions shali not in any way be affected or impaired. 24. FORCE MAJEURE. Lessor and Lessee shall exercise every reasonable effort to meet theix respective obligations as set £orth in this Lease, but shall not be held liable for any delay in or omission of performa�nce due to force majeure or other causes beyond their reasonable control, including, but not limited to, compliance with any government law, ordinance or regulation, acts of God, acts o� omission, fires, st�•ikes, lockouts, national disasters, wars, riots, matexial or labor restrictions by any governmental autb.ority, transporlation problems and/ox any other cause beyond ihe reasonable control of the partias. Page 18 Guinn School Lease Agreement J�����:.�11'z� ������ ""��1� '; �,�;��I;1��� v �l � l'.:; �! � �t.. ,� �`'' ., --S'i� t'-, 25. HEADINGS NOT CONTROLLING. Headings and titles used in this Lease are for reference puiposes only and shall not be deemed a part of this Lease. 26. ENTIRETY OF AGREEMENT. This written inst�ument, including any docuanents incorporated herein bq reference, contains the entire understanding and agreement between Lessor and Lessee, its assigns and successors in interest, as to the matters contained herein. Any priox or contemporax�eous oral or written agreement is hereby declared null and void to the exteni in conflict with any provisions of this Lease. The terms and condztions of thzs Lease shall not be amended unless agreed to in writing and signed by bath parties. IN WITNESS WHEREDF, the parties hezeto have exeeuted thzs Lease in multiples this �%�� day of ��c ���-,��, 2006. LESS4R City of Fort Wort,h t fZ�[.'- ' L'L � .� � By: � Dale Fisseler G� . Assistant City Manager ATTEST: : ��,t'��a � �1iG�U-�� ���" °l M Hendrix City Seeretary APPROV AS TQ�ORM AND LEGALITY: % l �--_ Ci Attorn or His Designee Date: M & C Number: G-14600 ,a��l�F���, Page 19 Guinn School Lease Agresment LESSEE Tarrant County College District � B� --- � _- __- _� Y• D vid_ A. Wells Provost ��r����1G4�� 1SbVF9�� ���1� ��'��; �� �'�I �°1'T ,�� : � .,t �,��� ';,n. r.,�,. �; ; � �.: STATE OF TEXAS COUNTY OF TARRANT BEF4RE ME, the undersigned authority, a Nota�y Public in and for the State of Texas, on tkus day personally appeared Dale Fisseler known to me to be the person whose naxne is subscribed to the foregoing instrument, and acknowledged to me that the same was the act of the City of Fort Worth and that he executed the same as the act oithe Ciiy of Fort Worth for the purposes and consideration therein expxessed and in the capacity tlaexein stated. GL ,,EN UNDER MY HAND AND SEAL OF OFFICE this ��D day of J�YZ �,`e,t_�� 2006. �,��Y�n ANA L. BRISENO � � Notary Public * �` STATE OF iEYA� �A�OF�py My Comm. Exp.01!'861200i STATE OF TEXAS COUNTY OF TARRANT i��� r ,ro� � ,/I�i,��� Notary Public in and %r the State of Texas BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared Davzd A. Wells, . known to me to be the pexson whose name is subscribed to the foregoing instiument, and acknowledged to me that the sarne was the act of the Tarrant County Coliege District and that he executed the same as the act of the Tarrant County College District for the ptuposes and consideration therein expressed and in the capacity therein stated. m`�,i , GNEN UNDER MY HAND AND SEAL OF OFFICE this � day of : �'���'�- , 2006. � ,i'i�-�;��.t � / �G���� ot�ry Public in and for the State of Texas ,�;��"'°�;?, KAREN 5 BURKNART = �' "` Notary public State of Texas : . �� _ �,y {a"� My Cc�mrtil6siari ExNir�s �-„�,' d,,,�' May 19, �odq Page 20 Gainn School Lease Agree►nent �������li;�� s����� �I�' ��������' ��, :�������, ���. Page 1 of 2 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 12/7/2004 DATE: Tuesday, December 07, 2004 LOG NAME: 17GUINNMASTERLS REFERENCE NO.: �'�G-14600 SUBJECT: Authorization to Assign the Leases under the Master Lease of the James E. Guinn School from the Fort Worth Business Assistance Center to the City of Fort Worth, Terminate the Master Lease and Renew Expired Leases RECOMMENDATION: It is recommended that the City Council authorize the City Manager to: 1. Accept assignment of existing leases between Guinn School tenants and the Fort Worth Business Assistance Center; 2. Terminate the Master Lease between the City of Fort Worth and the Fort Worth Business Assistance Center; and 3. Renew expired leases between tenants and the City of Fort Worth. DISCUSSION: Council approved the Master Lease between the City of Fort Worth and the Fort Worth Business Assistance Center (the BAC) on May 22, 2001. The BAC board considered the lease during its meeting on June 14, 2001, requested changes and approved the final version during its meeting on July 12, 2001. The Master Lease states that the agreement shall be for five years, beginning on May 23, 2001 and that the BAC has the option to renew the lease for two terms of five years each. The BAC and the City agree that either party may terminate the Agreement, with cause, by giving the other party 90 days written notice. The City Administer opted to Master Lease the building to the BAC because at the time, the City was negotiating with Bank One to sell the federal tax credits, which would have required that the City enter into a complicated sale of the leasehold rights to the BAC, a qualified non-profit organization. Ultimately, the U. S. Economic Development Administration refused to approve the sale, and the City retains ownership of the James E. Guinn Middle School thereby voiding the reason for the BAC to retain the Master Lease. The lease document will be prepared by the Department of Law. The Guinn School is currently 100% leased and it is not anticipated that additional tenants will be added. This property is located in COUNCIL DISTRICT 8. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that this action will have no material effect on City Funds. http://www.cfwnet.org/council�acket/Keports/mc�rint.asp 1/30/2007 TO Fund/AccountlCenters Submitted for City Manager's Office bv: Originating De�artment Head: Additional Information Contact: FROM Fund/Account/Centers Dale Fisseler (Acting) (6266) Tom Higgins (6192) Dorothy Wing (212-2665) Page 2 of 2 http:Uwww.cfwnet.org/council�acket/Reports/mc�rint.asp 1/30/2007