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HomeMy WebLinkAboutContract 35572iTY SECRETARY CONTrs,ACT NO. LEASE AGREEMENT STATE OF TEXAS § COUNTY OF TARRANT § This lease agreement (Lease) is made and entered into this, the c day of , 2007 the effective date hereof, at Fort Worth, Texas bytd etween Rd*M; VI SquGIfG SL4PWiyl4 cue-KftW(Lessor), and the City of Fort W, municipal corporat%n, acting by and through its duly authorized representative Joe Paniagua (Lessee). The term "Lessor" shall include the agents, representatives, employees, and contractors of Lessor. The term "Lessee" shall include the agents, representatives, and employees of Lessee. SECTION 1. Leased Premises. For and in consideration of the rental payments to be paid under this Lease, Lessor leases to Lessee and Lessee Leases from Lessor: Office Space of approximately 1,600 square feet, located at 6773 Camp Bowie Blvd. , Fort Worth, Texas 76116. The office space, together with any and all structures, improvements, fixtures and appurtenances thereon, thereunder or over, shall be referred to as the Leased Premises. The boundaries and location of the Leased Premises are described on the attached Exhibit A made part hereof. Lessor, at its own expense shall construct the Leased Premises based upon plans and specifications set forth in the attached Exhibit "B" made a parthereof ("Tenant Improvements"). SECTION 2. Use of premises. The Leased Premises shall be used as office space for the City of Fort Worth. SECTION 3. Term and Rent. This lease shall be for a period of sixty (60) months commencing on October 1, 20 07 and terminating on September125 unless a prior termination is effected by either Lessor or Lessee under the termination provisions of this Lease. Lessee shall pay rent under this Lease Agreement in accordance with the following rent schedule: Months Base rent per square foot per ear 142 $16.97 13-60 $ 9.75 Monthly base rent installment $2,263.00 $1,300.00 Additionally, upon substantial completion of the Tenant Improvements as outlined_n ,Exhibit "B", Lessee shall pay to Lessor one (1) payment of $20,000.00. If substantial completion ;d�f �tl�ese; , improvements is completed prior to October 1, 2007, Lessor may occupy the Lea ed P irk ��t;, City of Fort Worth Lease Page 1 free until October 1, 2007. Lessor shall use its best efforts to complete the improvements in a timely manner. Lessee shall have the right to renew this Lease for one (1) five (5) year period, provided that Lessee notifies Lessor in writing of its intent to extend on or before ninety (90) days prior to the expiration of the initial five (5) year term of the Lease. The terms of this Lease shall continue to govern and control the relationship of the parties during the renewal periods. Rent for the renewal term shall be $12.00 per square foot annually, or $1,600.00 per month. SECTION 4. Taxes, Insurance, Utilities, Care of the Leased Premises. Lessee agrees to be responsible for the payment of all electricity, natural gas, local telephone, or other utility charges that come due and payable during the term Lessee occupies the Leased Premises. Lessor agrees that Lessor will pay for water for the Premises, provided usage is within normal amounts. Additionally, Lessor agrees to pay all taxes and insurance as they come due. Lessee shall keep the Leased Premises in good, clean and habitable condition, normal wear and tear excepted. Lessor shall maintain in good repair the roof, foundation, and exterior walls of the Leased Premises. Lessee agrees to give Lessor written notice of defects or need for repairs in the roof, foundation, and exterior walls of the Leased Premises. if any repairs required to be made by Lessor are not commenced or made within thirty (30) calendar days after written notice is delivered to Lessor by Lessee, Lessee may terminate the Lease. SECTION 5. Insurance. Lessor agrees to insure the structure and premises of 6773 Camp Bowie Blvd., Fort Worth, Tarrant County, Texas 76116. Such insurance shall provide protection for liability, fire and casualty, and property damage for the property owned by the Lessor, situated at, and including, the Leased Premises. Verification of this coverage shall be provided to Lessee prior to the execution of this contract. Lessee assumes no liability or financial obligation for the acquisition or maintenance of such insurance; all costs incurred during the course of insuring the premises shall be borne solely by the Lessor. The City of Fort Worth is basically aself-funded entity and as such, generally, it does not maintain a commercial liability insurance policy to cover premises liability. Damages for which the City of Fort Worth would ultimately be found liable would be paid directly and primarily by the City of Fort Worth and not by a commercial insurance company. SECTION 6. Liability and Hold Harmless. LESSOR SHALL NOT BE LIABLE FOR AND, TO THE EXTENT PERMITTED BY LAW, LESSEE WILL INDEMNIFY AND HOLD LESSOR HARMLESS OF AND FROM ALL FINES, SUITS, CLAIMS, DEMANDS, LOSSES, AND ACTIONS (INCLUDING REASONABLE ATTORNEY'S FEES) FOR ANY INJURY TO PERSON OR DAMAGE TO OR LOSS OF PROPERTY ON OR ABOUT THE PREMISES CAUSED BY THE NEGLIGENCE OR MISCONDUCT OR BREACH OF THIS LEASE AGREEMENT BY LESSEE, ITS EMPLOYEES, SUBTENANTS, INVITEES, OR BY ANY OTHER PERSON ENTERING THE PREMISES OR THE BUILDING UNDER EXPRESSED OR IMPLIED INVITATION OF LESSEE, OR ARISING OUT OF LESSEE'S USE OF THE PREMISES. LESSOR SHALL NOT BE LIABLE OR RESPONSIBLE FOR ANY LOSS OR City of Fort Worth Lease Page 2 DAMAGE TO ANY PROPERTY OR DEATH OR INJURY TO ANY PERSON OCCASIONED BY THEFT, FIRE ACT OF GOD, PUBLIC ENEMY, INJUNCTION, RIOT, STRIKE, INSURRECTION, WAR, COURT ORDER, REQUISITION, OR OTHER GOVERNMENTAL BODY OR AUTHORITY, BY OTHER TENANTS OF THE BUILDING, OR ANY OTHER MATTER BEYOND CONTROL OF LESSOR, OR FOR ANY INJURY OR DAMAGE OR INCONVENIENCE WHICH MAY ARISE THROUGH REPAIR OR ALTERATION OF ANY PART OF THE BUILDING, OR FAILURE TO MAKE REPAIRS, OR FROM ANY CAUSE WHATEVER EXCEPT LESSOR'S INTENTIONAL OR GROSSLY NEGLIGENT ACTS, OR FAILURE TO PERFORM ITS OBLIGATIONS UNDER THIS LEASE AGREEMENT, ARTICLE XI SECTION 7 OF THE TEXAS CONSTITUTION PROVIDES THAT A CITY IS PROHIBITED FROM CREATING A DEBT UNLESS THE CITY LEVIES AND COLLECTS A SUFFICIENT TAX TO PAY THE INTEREST ON THE DEBT AND PROVIDES A SINKING FUND. THE CITY OF FORT WORTH HAS NOT AND WILL NOT CREATE A SINKING FUND OR COLLECT ANY TAX TO PAY ANY OBLIGATION CREATED UNDER THIS SECTION. SECTION 7. Fixtures. Lessor herein agrees that no property or equipment, owned or installed by Lessee, or any representative of Lessee, shall, under any circumstances, become a fixture, and that Lessee shall reserve the right to remove any and all such property or equipment at any time during the term of this lease, or subsequent to its termination by either party. In the event of any such removal, Lessee shall use its best efforts to not damage the Leased Premises, and Lessee agrees to reasonably repair any such damage that might occur to the Leased Premises. Lessor further agrees that she/he Will, at no time, hold or retain, any property owned or installed by Lessee, for any reason whatsoever. SECTION 8. Termination, Funding and Non -Appropriation. This Lease shall terminate in the event that the governing body of Lessee shall fail to appropriate sufficient funds to satisfy any obligation of Lessee hereunder. Termination shall be effective as of the last day of the fiscal period for which sufficient funds were appropriated or upon expenditure of all appropriated funds, whichever comes first; provided however, if Lessee terminates the Lease at any time during the primary term, Lessee shall pay a cancellation penalty equal to $3,900.00 for termination prior to the completion of the third (3`d) year of the lease term, and a cancellation penalty of $2,600.00 for termination following completion of the third (3rd) year of the lease term. There shall be no cancellation penalty if Lessee terminates the Lease anytime after completing the first five-year lease term. SECTION 9. Right of Inspection. Lessor reserves the right to enter upon the Premises at all reasonable times for the purpose of inspecting the Leased Premises, provided that such entry does not conflict with Lessee's rights hereunder. SECTION 10. Surrender of Leased Premises. Upon the termination of this Lease for any reason whatsoever, Lessee shall surrender possession of the Leased Premises in the same condition as the Leased Premises were in upon delivery of possession under the Lease, reasonable wear and tear excepted. Lessee also shall surrender all keys for the Leased Premises to Lessor at the place then Fixed for the payment for rent and shall inform Lessor of all combinations on locks, safes, and vaults, if any, on the Leased Premises. Lessee shall remove all its furniture and equipment on or before the termination of the Lease; and Lessee shall be responsible for repairing any damage to the Leased City of Fort Worth Lease Page 3 Premises caused by the removal of furniture and equipment. Additionally, if Lessee modifies the Premises with alterations, additions, or improvements made or installed by Lessee, Lessor, upon the termination of this Lease, shall have the right to demand that Lessee remove some or all of such alterations, additions, or improvements made by Lessee. SECTION 11. Acceptance of Leased Premises. Lessee acknowledges that Lessee has fully inspected the Premises, and on the basis of such inspection Lessee hereby accepts the Premises, and the building and improvements situated thereon, as suitable for the purposes for which the same are leased. In the event any presently installed plumbing, plumbing fixtures, electrical wiring, lighting fixtures, or air conditioning and heating equipment are not in good working condition on the commencement date of this Lease, Lessor agrees to repair promptly any such defects of which Lessee delivers written notice to Lessor within thirty days after the commencement date of this Lease. SECTION 12. Assignment. Lessee shall not assign or sublet this Lease without the prior written approval of Lessor. Upon issuance of such approval, this Lease shall be binding on the successors, and lawful assignees of Lessor and the successors of Lessee, as permitted by the terms of this agreement and by the laws of the State of Texas and the United States. Any person or entity using or occupying the Leased Premises without a lawful assignment or sublease shall be subject to all the responsibilities and liabilities of Lessee and shall be subject to all provisions regarding termination and eviction. SECTION 13. Police Protection. Lessor agrees and understands that Lessee in no way promises to provide increased police protection or more rapid emergency response time because of this Lease. No special relationship shall exist between Lessor or Lessee other than that of landlord and tenant. Lessee shall provide no greater police protection to Lessor than is provided to all other residents and businesses of the City of Fort Worth. SECTION 14. Notices. Notices required to be made under this agreement shall be sent to the following persons at the following addresses, provided, however, that each party reserves the right to change its designated person for notice, upon written notice to the other party of such change: All notices to Lessor shall be sent to: Hickman Investments 6777 Camp Bowie Blvd, Suite 600 Fort Worth, Texas 76116 Attention: Doug Woodson All notices to Lessee shall be sent to: Fort Worth Police Department Administrator, Fiscal and Equipment Management 350 West Belknap Street Fort Worth, Texas 76102 City of Fort Worth Lease Page 4 As well as to: City of Fort Worth Real Property Services 1000 Throckmorton Street Fort Worth, Texas 76102 All time periods related to any notice requirements specified in the Lease shall commence upon the terms specified in the section requiring the notice. SECTION 15. Entire Agreement. This Lease shall constitute the entire agreement of the Lessor and Lessee, and shall supersede any prior agreements, either oral or written, pertaining to the Leased Premises. SECTION 16. Waivers. One or more waivers of any covenant, term, or condition of the Lease by either Lessor or Lessee shall not be construed as a waiver of a subsequent breach of the same covenant, term, or condition. The consent or approval by either Lessor or Lessee to or of any act by the other party requiring such consent or approval shall not be deemed a waiver or render unnecessary consent to or approval of any subsequent similar act. SECTION 17. Choice of Law and Venue. This lease and the relationship created hereby shall be governed by the laws of the State of Texas. Venue for any action brought to interpret or enforce the terms of the Lease or for any breach shall be in Tarrant County, Texas. SECTION 18. Expansion Option. During any term of this Lease, Lessee shall have the option to expand into Suite 6771, comprised of 1,500 square feet and located adjacent to the Leased Premises. The terms and conditions for this potential expansion are to be determined by mutual agreement between Lessor and Lessee at the time Lessee exercises this option. SIGNED this ,day of LESSOR: WELLINGTON SQUARE �HOPPI3�G CENTER By: Name: Doug Woodson Title: Director of Real Estate LEA By: Name: Joe Paniagua Title: Assistant City Manager City of Fort Worth Lease Page 5 )j�� v�Lt lSal?� APPROVED AS TO FORM AND LEGALITY: ATTEST: City Secretary M & C Number: " I f 0'1 Date: �lll� Contract Number: ���% d- City of Fort Worth Lease Page 6 STATE OF TEXAS S COUNTY OF TARRANT N BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared o�q (�.i�d55oy/1 , known to me to be the same person whose name is subscribed to the foregoing instrument, and acknowledged to me that the same was the act of p )q (�o�5o�j and that he/she executed the same as the act of said 6 . L.ri• .�s __�.l • • • • • consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this I fih day of '�'� SANDRA JOHNSON MY COMMISSION EXPIRES . ra t 00 =` September 14, 2010 Notary Public in and State of Texas City of Fort Worth Lease Page 7 STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared Joe Paniagua, known to me to be the same person whose name is subscribed to the foregoing instrument, and acknowledged to me that the same was the act of Joe Paniagua and that he executed the same as the act of said City of Fort Worth for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this �9- day of MARIA S. SANCHEZ NOTARY PUBLIC STATE OF TEXAS My comm. Exp.12.14-2009 Nota Public in and for the State of City of Fort Worth Lease Page 8 Legal Description: Lot: AlA, A1B1, A1C, Block: 6 Addition: Ridglea Hills EXIIIDI'I' A DIRECTOR OF REAL ESTATE HICKMAN COMPANIES City of Fort Worth Lease Page 9 EXHIBIT B Page 1 of 2 �-ron� door t�i#ice App. 12xi 1 �a Office i App. 12xlI i vv Meth � phone area 6 •..utummul �leiN' i3e��ro©>sn �rea� Area �xis�ing ©tth , DIRECTOR OF REAL ESTATE HICKMAN COMPANIES City of Fort Worth Lease Page 10 EXHIBIT B Page 2 of 2 COST EST. 6773 CAMP BOWIE WELLINGTON SQ. 3/19/2007 1 Architecfi and Pemits $ 1,600.00 2 Demo $ 600.00 3 Electrical $ 71500000 (17 plugs--22new light fixtures--3 switches & 8 motion switches bathroom rough & permit) 4 New ADA Restroom $ 5,000.00 comode, 2 sink, & hot water heater (concrete cutting) 5 HVAC $ 2,000.00 reroute ducts, add new grills, & return air vents 6 New Walls $ 7,904.00 (app. 208 running It. wall @ 38.00 per.) walls -tape -bed -texture & painting (material & labor) 7 Ceiling Tile Work $ 800.00 (removal & reinstall) 8 New Carpet, VCT Fl000ring & R $ 35200600 app. 1600 sq. ft. @ $2.00 per.) 9 New Doors and Hardware $ 1,800.00 (9 doors @ $200. per) 10 New Cabinet for sink in Break Room $ 900.00 11 F.R.P. Grab Bars & Etc, for restrooms $ 250.00 TOTAL $ 31,554.00 DIRECTOR OF REAL ESTATE HICKMAN COMPANIES City of Fort Worth Lease Page 11 11 1111111111111 11111 iiiiiiiiiiiiiiii I !!=1 IF 11 1 11 111 111 111 III I k MGM OG NAME: 35SSILEASEREFERENCE • SU13J CT: Authorize Execution of a Lease Agreement with Wellington Square Shopping Center for Office Space at 6773 Camp Bowie Boulevard, for the Police Department School Security Initiative RECOMMENDATION: It is recommended that the City Council. 1. Authorize the City Manager to execute a lease agreement with Wellington Square Shopping Center for office space of approximately 1600 square feet located at 6773 Camp Bowie Boulevard for an amount not to exceed $27,152 annually; 2. Authorize building improvements for aone-time payment not to exceed $20,000; and 3. Authorize this agreement to be effective October 1, 2007 through September 30, 2012, with an option to renew for a one additional five-year period at the City's option. The Engineering Department, Real Property Services Division, at the request of the Police Department, negotiated a lease agreement with Wellington Square Shopping Center for office space to be used by the Police Department. The office space will be occupied by the Police staff assigned to the School Security Initiative. The current lease facility is being demolished and the agreement will expire on September 30, 2007. The lease term is for 60 months. The City of Fort Worth will lease approximately 1,600 square feet at a lease rate of $16.97 per square foot for the first year and at a lease rate of $9.75 for years iwo through five, with an annual rate of $27,152 and $15,600 respectively. In addition to the above leasing costs, the Police Department will incur an expense for interior tenant improvements for office space configuration based on police staff requirements at a cost of $31,554, of which a one time lump -sum payment of $20,000 will be made upon completion of the improvements. The remaining costs will be prorated and apportioned over the first year's leasing costs. Upon substantial completion of the improvement, prior to October 1, 2007, the Police Department will occupy the leased facility at no additional costs. RENEWAL OPTIONS -This agreement may be renewed for up to one successive five-year term at the City's option. This action does not require specific City Council approval provided that the City Council has appropriated sufficient funds to satisfy the City's obligation during the renewal term. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that funds are available in the current operating budget, as appropriated, of Logname: 35SSILEASE Page 1 of 2 the Crime Control and Prevention District Fund for the building improvements. Funds for the lease of the building will be included in the FY2007-2008 proposed budget of the Crime Control and Prevention District Fund. TO Fund/AccountlCenters FROM Fund/AccounuCenters GR79 539120 0359600 Submitted for City ManaUWA %7 Office by: Joe Paniagua (6191) Originating Department Head: Ralph Mendoza (4211) Additional Information Contact: Kara Shuror (4221) Logname: 35SSILEASE $47,152.00