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HomeMy WebLinkAboutContract 29803 CITY SECRETARYC1 , CONTRACT NO. LEASE AGREEMENT STATE OF TEXAS § COUNTY OF TARRANT S Ths lease agreement (Lease) is made and entered into this, the day of l , 2004, the effective date hereof, at Fort Worth, Texas by and between the City of Fort Worth, a municipal corporation, acting by and through its duly authorized representative, Assistant City Manager, Reid Rector, (Lessor) and Global Cellular International, Inc. (Lessee)_ SECTION 1. Leased Premises and Common Area. A. For and in consideration of the rental payments to be paid under this Lease, Lessor leases to Lessee and Lessee leases from Lessor the following described property on a frill service basis: Approximately 210 rentable square feet of office space (the "Leased Premises") in the `Building" located at 307 W. 7`h Street, Fort Worth, Tarrant County, Texas, a more particular description of which is attached as "Exhibit A." The Leased Premises as described above together with any and all structures, improvements, fixtures and appurtenances thereon, thereunder or over, shall be referred to as the "Leased Premises". B. The Leased Premises shall be leased to Lessee unfurnished. C. Lessee agrees that the Leased Premises location may change during the term of the Lease. If Lessor desires to move Lessee during the term of this Lease, Lessor shall offer comparable space to Lessee and Lessee shall determine, in its sole discretion whether to accept such space. If Lessee does not accept the new space, this Lease shall automatically be terminated. SECTION 2. Master Lease for Office Space Lessee understands that Lessor is subleasing the Leased Premises to Lessee and that Lessor is leasing the Leased Premises from Ft. Worth Plaza, Limited Partnership under a Master Lease ("Master Lease") and Lessee agrees that this Lease is subject and subordinate to such Master Lease. SECTION 3. Use of Premises. A. The Leased Premises shall be used primarily for administrative offices of the Lessee. B. The Leased Premises may not be used for any illegal activity, or any activity of a hazardous or high-risk nature that would endanger property or human safety. Lessee will take measures to guard against any condition at the Leased Premises of an illegal nature, or of a hazardous or high-risk nature that would endanger property or human safe City of Fort Worth Lease Page 1 SECTION 4. Term and Rent. A. This lease shall be for a period of 7 months commencing on March 1, 2004 and terminatinp- September 30, 2004, unless a prior termination is effected by either Lessor or Lessee u rider t he t ennination p rovisions o f t his Lease. D uring t he s even m onth t erm, Lessee shall pay Lessor annualized rent of $37.15 per square foot per year base rent, payable in equal monthly installments of$650.00. B. Lessee s hall h ave t he right t o renew t his Lease f or o ne year w ith t hirty days w ritten notice to Lessor. B. Lessee shall also be responsible for Additional Rent Expenses as outlined in Section 5 during any renewal term. C. Lessee shall pay Lessor rent at 808 Throckmorton Fort Worth, Texas 76102. SECTION 5. Additional Rent Expenses A. In the event Operating Expenses (as hereinafter defined) of Lessor incurred in connection with the Land and Building, of which the Leased Premises are a part, shall for any calendar year during the Term of this Lease exceed the sum of the 2004 Base Year Actual expenses, Lessee agrees to pay as additional rental Lessee's pro rata share ("Lessee's Share") as determined by Lessor of such Operating Expenses in excess of 2004 Base Year. ("Excess Operating Expenses") of the Leased Area. The 2004 Base Year shall be determined under the Master Lease between the City of Fort Worth and Ft. Worth Plaza, Limited Partnership. B. The term "Operating Expenses" as used herein shall include all costs and expenses of every kind and nature whatsoever incurred by Lessor in connection with the ownership, operation, and maintenance of the Building, No decrease in Operating Expenses shall reduce Lessee's rent below the sum set forth in Section LA. C. Lessee agrees to pay Lessee's Share of Excess Operating Expenses for the ensuing Lease Period, as estimated under the Master Lease. If this Lease commences on other than the first day of a calendar year, or if this Lease expires on other than the last day of a calendar year, then the Excess Operating Expenses shall be prorated according to the portion of the Term that occurs during such calendar year. At least fifteen (15) days prior to the commencement of each calendar year during the Term, commencing with the calendar year 2005, Lessor shall furnish Lessee a written statement setting forth the estimated Lessee's Share for the following year and a statement showing one-twelfth (1/12) of the amount of the estimated Lessee's Share. If, as finally determined, Lessee's Share shall be greater than or less than the aggregate of all installments so paid to the Lessor for such twelve (12) month period, then Lessee shall pay to Lessor the amount of such underpayment within thirty (30) days of delivery of such statement, or the Lessor shall credit Lessee for the amount of such overpayment, as the case may be. SECTION 6. Signage; Utilities City of Fort Worth Lease Page 2 —)4�r/vim A. At Lessee's expense, Lessor shall provide appropriate signage identifying the Leased Premises. B. Lessee shall be responsible for obtaining and for the payment of all telephone and internet charges. SECTION 7. MAINTENANCE AND REPAIR OF LEASED PREMISES. Lessee shall keep the Leased Premises, including all fixtures installed by Lessee, in good and tenantable condition. In addition, Lessee shall pay the cost of repair and replacement due to damage or injury done to the Building (other than the Leased Premises) or any part thereof by Lessee or Lessee's agents, employees, contractors, licensees or invitees. Such amount shall be paid by Lessee to Lessor upon demand, plus interest thereon, as provided in this Lease, from demand until payment. Upon termination of this Lease, Lessee will surrender and deliver up the Leased Premises to Lessor in the same condition in which they existed at the commencement of the Lease, excepting only ordinary wear and tear and damage arising from any cause required hereunder to be repaired at Lessor's expense SECTION 8. ALTERATIONS; INSPECTIONS. A. Lessee shall not make any alterations, additions, or improvements to the Leased Premises without the prior written consent of Lessor. B. Lessor and Ft. Worth Plaza, Limited Partnership under the Master Lease shall have the right to enter upon the Leased Premises for the purpose of inspecting same, or of making repairs or additions to the Leased Premises, or of making repairs, alterations, or additions to adjacent premises, or of showing the Leased Premises to prospective purchasers, lessors, or lenders. SECTION 9. INSURANCE A. Commercial General Liability Insurance. Lessee shall at all times during the term hereof, maintain a Commercial General Liability Policy of insurance with limits not less than $1,000,000 per occurrence, combined single limit for bodily injury or death and property damage, $2,000,000 aggregate. Said policy shall have the City of Fort Worth as an additional insured. Lessee shall furnish to Lessor a certificate of insurance verifying such coverage with a confirmation that such policy shall not be subject to cancellation except upon thirty (30) days' prior written notice to Lessor. Lessor may, at its option, also require Lessee to submit a copy of the policy or policies in effect as well as proof of payment of premiums. B. Insurance for Contents Lessee shall be responsible for maintaining any policy of insurance which will insure against loss of property owned by Lessee which is located on the Leased Premises. Said insurance shall waive any right of subrogation in favor of Lessor. C. Liquor Liability and Host Liability. If Lessee sells, gives, serves or allows alcoholic beverages to be sold, given or served, Lessee shall at all times during the term hereof maintain Liquor Liability coverage and Host Liability coverage with limits not less than City oJFa•r Worth Lease Page 3 v r 1, �W-1--1 1111 1 KL $1,000,000 per occurrence, combined single limit for bodily injury or death and property damage, $2,000,000 aggregate. D. Prior to Lessee moving into the Leased Premises, Lessor must provide Lessee with evidence o f c overage required b y t his Lease. S uch e vidence s hall b e i n t he form o f Certificates of Insurance issued by the insurance carrier. Throughout the term, Lessor must provide Lessee with renewal certificates prior to the expiration date shown on the previous Certificate of Insurance on file with Lessor. C ertificates o f Insurance must specify the additional insured status mentioned above as well as the Waivers of Subrogation. Each Certificate of Insurance must state that Lessor w ill be notified in writing thirty (30) days prior to cancellation, material change, or renewal of insurance. SECTION 10. INDEMNITY; WAIVER OF LIABILITY A. LESSEE AGREES TO INDEMNIFY, DEFEND AND SAVE HARMLESS LESSOR AND ITS EMPLOYEES (COLLECTIVELY "INDEMNITEES") FROM AND AGAINST ANY AND ALL LIABILITIES, DAMAGES, CLAIMS, SUITS, COSTS (INCLUDING COURT COSTS, ATTORNEYS' FEES, AND COSTS OF INVESTIGATION) OF ANY NATURE, KIND OR DESCRIPTION OF ANY PERSON OR ENTITY, DIRECTLY OR INDIRECTLY ARISING OUT OF, CAUSED BY; OR RESULTING FROM (IN WHOLE OR IN PART): (i) THE USE AND OCCUPATION OF THE LEASED PREMISES, (ii) ANY ACT OR OCCURRENCE ON THE LEASED PREMISES, OR ANY PART THEREOF, (iii) THIS LEASE OR THE PERFORMANCE BY LESSEE OF ITS OBLIGATIONS HEREUNDER OR (iv) ANY ACT OR OMISSION ON THE PART OF LESSEE OR ANY INVITEE, LICENSEE, EMPLOYEE, DIRECTOR, OFFICER, SERVANT, CONTRACTOR, SUBCONTRACTOR OR LESSEE OF LESSEE OCCURRING ON, IN, OR ABOUT THE LEASED PREMISES OR THE BUILDING (THE A BOVE H EREINAFTER C OLLECTIVELY R EFERRED T O AS "CLAIMS"), EXCEPT TO THE EXTENT THAT SUCH CLAIMS ARISE FROM OR ARE ATTRIBUTED TO THE CONCURRENT NEGLIGENCE, SOLE NEGLIGENCE AND/OR STRICT LIABILITY OF ANY OF THE INDEMNITEES. IF ANY ACTION OR PROCEEDING SHALL BE BROUGHT BY OR AGAINST ANY INDEMNITEE IN CONNECTION WITH ANY SUCH LIABILITY OR CLAIMS, LESSEE, ON NOTICE FROM LESSOR, SHALL DEFEND SUCH ACTION OR PROCEEDING, AT LESSEE'S EXPENSE, BY OR THROUGH ATTORNEYS REASONABLY SATISFACTORY TO LESSOR. THE PROVISIONS OF THIS PARAGRAPH SHALL APPLY TO ALL ACTIVITIES OF L ESSEE W ITH R ESPECT T O T HE L EASED P REMISES O R B UILDING, WHETHER OCCURRING BEFORE OR AFTER THE COMMENCEMENT DATE OF THE TERM AND BEFORE OR AFTER THE EXPIRATION OR TERMINATION OF THIS LEASE. LESSEE'S OBLIGATIONS UNDER THIS PARAGRAPH S HALL N OT BE LIMITED TO T HE LIMITS OR C OVERAGE OF INSURANCE MAINTAINED OR REQUIRED TO BE MAINTAINED BY LESSEE UNDER THIS LEASE. City of Fort Worth Lease Page 4 `� B. NO INDEMNITEE SHALL BE LIABLE IN ANY MANNER TO LESSEE OR ANY OTHER P ARTY FOR A NY I NJURY T O O R D EATH O F PERSONS O R FOR ANY LOSS OF OR DAMAGE TO PROPERTY OF LESSEE, ITS EMPLOYEES, AGENTS, CUSTOMERS, INVITEES, OR TO OTHERS, REGARDLESS OF WHETHER SUCH PROPERTY IS ENTRUSTED TO EMPLOYEES OF THE BUILDING. OR SUCH LOSS OR DAMAGE IS OCCASIONED BY CASUALTY, THEFT, OR ANY OTHER CAUSE OF WHATSOEVER NATURE. EXCEPT TO THE EXTENT THAT SUCH INJURY, LOSS OR DAMAGE IS CAUSED IN WHOLE OR IN PART BY THE NEGLIGENCE OF ANY INDEMNITEES, IN NO EVENT SHALL ANY INDEMNITEE BE LIABLE IN ANY MANNER TO LESSEE OR ANY OTHER PARTY AS THE RESULT OF THE ACTS OR OMISSIONS OF LESSEE, ITS AGENTS, EMPLOYEES, CONTRACTORS OR ANY OTHER LESSEE OF THE BUILDING. ALL PERSONAL PROPERTY UPON THE LEASED PREMISES SHALL BE AT THE RISK OF LESSEE ONLY AND NO INDEMNITEES SHALL BE LIABLE FOR ANY DAMAGE THERETO OR THEFT THEREOF, EXCEPT TO THE EXTENT THAT SUCH DAMAGE OR THEFT IS CAUSED IN WHOLE OR IN PART BY THE NEGLIGENCE OF ANY INDEMNITEE. SECTION 11: DEFAULTS AND REMEDIES A. Lessee Defaults. Each of the following acts or omissions of Lessee or occurrences shall constitute an "Event of Default:" (1) Failure or refusal by Lessee to timely pay Rent or other payments hereunder. (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 period of ten (10) days following written notice to Lessee of such failure. (3) Abandonment or vacating of the Leased Premises or any significant portion thereof for a period in excess of ninety (90) days. (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 assignment for the benefit of creditors or composition; or a petition or other proceeding by or 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 governmental authority for the dissolution or liquidation of Lessee. B. 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 Default shall occur, Lessor may, at its option, in addition to all other rights and remedies given hereunder or by law or equity, do any one or more of the following: • 1 City of Fort Worth Lease Page 5 _ :�'j F "` 1111 (1) Terminate this Lease, in which event Lessee shall immediately surrender possession of the Leased Premises to Lessor. (2) Enter upon and take possession of the Leased Premises and expel or remove Lessee and any other occupant therefrom, with or without having terminated the Lease. (3) Alter locks and other security devices at the Leased Premises. C. No such alteration of security devices and no removal or other exercise of dominion by Lessor over the property of Lessee or others at the Leased Premises shall be deemed unauthorized or constitute a conversion, Lessee hereby consenting, after any Event of Default, to the aforesaid exercise of dominion over Lessee's property within the Building. All claims for damages by reason of such re-entry and/or repossession and/or alteration of locks or other security devices are hereby waived, as are all claims for damages by reason of any distress warrant, forcible detainer proceedings, sequestration proceedings or o ther 1 egal p rocess. Lessee a groes t hat any re-entry b y Lessor m ay be p ursuant t o judgment obtained in forcible detainer proceedings or other legal proceedings or without the necessity for any legal proceedings, as Lessor may elect, and Lessor shall not be liable in trespass or otherwise. D. 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. E. Notice of Termination. I f Lessee fails to cure any default within the time periods set forth i n S ection 12A. a bove, Lessor m ay t erminate t his 1 ease u pon w ritten n otice s ent certified mail to the Lessee. Termination shall be effective 30 days after Lessee receives such notice. F. Lessor Default. In the event of any failure to perform any provision in this Lease Agreement by Lessor, Lessee shall give Lessor written notice specifying the default with particularity, and Lessor shall thereupon have thirty (30) days (plus an additional reasonable period as may be required in the exercise by Lessor of due diligence) in which to cure any such default. If Lessor fails to so cure any default after this notice, Lessee may terminate this Lease upon written notice to Lessor, such termination to be effective within ten (10) days after Lessor's receipt of such notice. SECTION 12. Fixtures . Lessee may remove all of its owned trade fixtures, office supplies and movable office furniture and equipment not attached to the Building provided: (1) such removal is made 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) Lessee promptly repairs all damage caused by such removal. All other property at the Leased Premises and any alteration or addition to the Leased Premises (including wall-to-wall carpeting, paneling or other wall covering) and nor City of Fort Worth Lease Page 6 attached or affixed to the floor, wall or ceiling of the Leased Premises (any of which as stated above shall require Lessor's prior written consent) shall become the property of Lessor and shall remain upon and be surrendered with the Leased Premises as part thereof at the termination of this Lease, Lessee hereby waiving all rights to any payment or compensation therefore. If, however, Lessor so requests in writing, Lessee will, prior to termination of this Lease, remove any and all alterations, additions, fixtures, equipment and property placed or installed by it or at its request in the Leased Premises and will repair any damage caused by such removal. SECTION 13. Non-Appropriation Termination Notwithstanding any provision contained herein, this Lease shall terminate in the event that the governing body of Lessor shall fail to appropriate sufficient funds to satisfy any obligation of the City of Fort Worth under the Master Lease. 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. SECTION 14. 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 Premises caused by the removal of furniture and equipment. SECTION 15. Governmental Regulations. A. Lessee agrees to comply fully with all applicable Federal, state, and municipal laws, statutes, ordinances, codes, or regulations in connection with use of the Leased Premises. B. Lessee shall not introduce nor allow to be introduced any hazardous waste or materials within the Leased Premises. SECTION 16. Assignment. Lessee shall not assign this Lease without the prior written approval of Lessor. SECTION 17. Notices. All notices to Lessor shall be sent to: Sigi Frias 808 Throckmorton Fort Worth, Texas 76102 All notices s to Lessee shall be sent to: City of Fort Worlh Lease Page 7 �� Mailing of all notices under the Lease shall be deemed sufficient if mailed certified, return receipt requested and addressed as specified herein to the other party's address. 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 18. Entire Agreement; Modification . A. 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. B. This agreement cannot be changed or modified orally, but only by an instrument in writing signed by both parties. SECTION 19. 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 20. Choice of Law; Venue. A. This lease and the relationship created hereby shall be governed by the laws of the State of Texas. B. Venue for any action brought to interpret or enforce the terruls of the Lease or for any breach shall be in Tarrant County, Texas. SECTION 21. Holdover. Any possession of the Leased Premises by Lessee after the date of expiration or termination of the Lease shall be deemed to be a month-to-month tenancy at sufferance, terminable by either party upon 30 days written notice. SECTION 22. Contract Construction. The p arties a cknowledge t hat e ach p arty a nd, i f i t s o c hooses, i is c ounsel h ave r eviewed a nd revised this Agreement and that the normal rile of construction to the effect that any ambiguities are to be resolved against the drafting party must not be employed in the interpretation of this Agreement or any amendments or exhibits hereto. ATTACHMENT & EXHIBITS Exhibit A Leased Premises -,Oily vile - City of Fort Worth Lease Page 8 SIGNED this LJay of A �' , 2004. LESSOR: City of Fort Worth LESSEE: By: & Reid Rector Assistant City Manager ATT ST: 1 Gloria earson City Secretary APPROV AS T AND LEGALITY: City Attorney or His Designee Date: M & C Number: I ��� I Contract Number: KIM HCOK' Cfff 41CAWY Ft WORTH, YR. City of Fort Worth Lease Page 9 STATE OF TEXAS § COUNTY OF TARR-ANT § BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared Reid Rector, 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 the City of Fort Worth and that he/she 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 2004. f EYP o ROSELLA BARNES Notary Public in and for the State of Texas , .. t*i1*f NOTARY PUBLIC �1 �y state of Texas Comm. Exp, 03-31-2005 City of Fort Worth Lease Page 10 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`�)4M -6 lA4u,_Q_)u , known to me to be the same person whose name is subscribed to hef ero going instrument, and acknowledged to me that the same was the act ofd that he/she executed the same as the act of said for the purposes and consideration therein expressed and in the capacity therein stated. e GIVENER MY HAND AND SEAL OF OFFICE this � day of —1�1914_J:VND 2004. 4. , No ry ublic in and for the State of Te ��.e:�.��:.�_Ye•��-=--tea:-.- ._ JAMEE R. TONGATE U00— NOTARY PUBLIC STATE OF TEXAS Eni. 12-21-2004 119 1 Kli City of Fort Worth Lease Page 11 Exhibit A oC y .I� ti II_ �O L 1 _ �-- - ;. 1 - FI i City of Fort Wath Lease Page 12 Exhibit A 7 Krtr Ew.; mp ' IIIJ� k W7 • ���I � r i "J i City of Fort Worth Lease Page 12 r Exhibit A r M J � 1 i t 1 A 4 1 r-- I City of Fort Wath Lease Page 12 l City of Fort Worth, Texas 4velgor And 4:0u"Cil COMI"Unication DATE I REFERENCE NUMBER LOG NAME FPAG 6/3/03 **L-13571 17FWIC LEASE 1 of 1 SUBJECT AUTHORIZATION FOR THE CITY OF FORT WORTH TO SUBLEASE AVAILABLE SPACE TO TENANTS IN THE FORT WORTH INTERNATIONAL CENTER RECOMMENDATION: It is recommended that the City Council: 1. Authorize the Fort Worth International Center (FWIC) to sublease available space to tenants involved in International Trade or Relationships in order to generate rent revenue; and 2. Authorize the FWIC to offer short-term no-cost leases to foreign companies evaluating investment in Fort Worth. DISCUSSION: The Fort Worth International Center occupies 10,795 square feet of office space on the ground floor of the Baker Building, located at 711 Houston Street. The current lease on the space expires March 31, 2005 and includes a clause permitting renewal until March 31, 2008. Three existing offices are currently empty and could generate rent at a rate including each office's share of common space, to offset the cost of the lease to the General Fund. Offering short-term, no-cost leases to foreign companies, which come to Fort Worth to evaluate making, an investment is a strategy in the FWIC business plan to recruit foreign investment in Fort Worth. Several companies who are investigating expansions in Fort Worth have expressed an interest in office space at the FWIC while they shop for appropriate office, warehouse and/or manufacturing facilities in Fort Worth. Those companies would be allowed to use an office in the FWIC during regular office hours while they are in Fort Worth. No keys, access cards or computers would be included. The telephone lines in the office would be restricted from long distance charges. Limited receptionist services would be included. FISCAL IIVFORMATIOIV/CERTIFICATION: The Finance Director certifies that this action will have no material effect on City funds. RR:r Submitted for City Manager's I i ND I ACCOUNT CENTER AMOUNT CITY SECRETARY Office by: Reid Rector 6140 Originating Department Head: Tom Higgins 6192 ( nun) APPROVED 06/03/03 Additional Information Contact: Dorothy Wing 2665