HomeMy WebLinkAboutContract 29112 CITY SECRETARY
CONTRACT NO.
LEASE AGREEMENT
STATE OF TEXAS §
COUNTY OF TARRANT §
,�9-23-03 Al r'
This lease agreement (Lease) is made and entered into this, the&,-) day of N. ,
2003 the effective date hereof, at Fort Worth, Texas by and between Elizabeth Ibarra and Dennis
Kraft (Lessor), and the City of Fort Worth, a municipal corporation, acting by and through its duly
authorized representative . 4 (Lessee). The term "Lessor" shall include the agents,
representatives, employees,an cog
an 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 and Warehouse Space of approximately 24,213 square feet, located at 5001 Blue
Mound Road, Fort Worth, Texas, 76106.
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 a part
hereof.
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 five years commencing on date of
Lessor's completion of Tenant Improvements as described in Exhibit `B" and terminating sixty
months thereafter, unless a prior termination is effected by either Lessor or Lessee under the
termination provisions of this Lease. Lessee shall pay Lessor an annual rental rate as follows:
Year Annual Rate Monthly Rate
1 $108,000 $9,000
2 $114,000 $9,500
3 $120,000 $10,000
4 $126,000 $10,500
5 $132,000 $11,000
The rental payment shall be made to the Lessor on the first day of the term and each month thereafter
including any extension of the Lease. Rent for any partial calendar month shall be prorated on a per
diem basis.
City of Fort Worth Lease Page 1
SECTION 4. Taxes, Insurance, Utilities, Improvements, Care of the Leased Premises. Lessee
agrees to be responsible for the payment of all electricity, natural gas, water, local telephone, or other
utility charges that come due and payable during the term Lessee occupies the Leased Premises.
Lessor agrees to pay all taxes and insurance as they come due. Lessor shall deliver the Leased
Premises in good, clean and habitable condition.
Lessor at his own expense shall renovate the Leased Premises as described in the attached
Exhibit `B", Tenant Improvements. Lessor shall maintain in good repair the roof, foundation,
exterior walls, heating and air conditioning, electrical and plumbing of the Leased Premises. Lessee
agrees to give Lessor written notice of defects or need for repairs in the roof, foundation, exterior
walls, heating and air conditioning, electrical, and plumbing of the Leased Premises. Upon receipt of
written notice, Lessor shall diligently pursue to cure defect or need for repairs. If any emergency
repairs to HVAC, plumbing, roof, or defects or need for repairs affecting matters of security or major
interruptions in business, required to be made by Lessor are not commenced or made within seven
calendar days after written notice is delivered to Lessor by Lessee, Lessee may terminate the Lease.
If any non-emergency repairs required to be made by Lessor are not commenced or made within
fourteen calendar days after written notice is delivered to Lessor by Lessee, Lessee may terminate the
Lease. If Lessee terminates this Lease because of Lessor's default and failure to cure, Lessee shall
not be required to pay the cancellation penalty as shown on Exhibit "C".
SECTION 5. Insurance. Lessor agrees to insure the structure and premises of 5001 Blue Mound
Road, Fort Worth, Tarrant County, Texas 76106. 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.
SECTION 6. Liability and Hold Harmless. LESSOR COVENANTS AND AGREES TO
RELEASE, INDEMNIFY, HOLD HARMLESS AND DEFEND LESSEE, ITS OFFICERS,
AGENTS, SERVANTS, AND EMPLOYEES, FROM AND AGAINST ANY AND ALL CLAIMS
OR SUITS FOR PROPERTY DAMAGE, PERSONAL INJURY, OR ANY OTHER TYPE OF
LOSS OR ADVERSE CONSEQUENCES RELATED IN ANY WAY TO A STRUCTURAL
DEFECT IN THE LEASED PREMISES. "STRUCTURAL DEFECT" IS LIMITED TO THE
FOLLOWING: STRUCTURAL DEFECTS IN THE LEASED PREMISES' FOUNDATION,
STRUCTURAL DEFECTS IN THE PARKING AREA SURROUNDING THE LEASED
PREMISES, AND STRUCTURAL DEFECTS IN THE WALLS AND ROOF OF THE LEASED
PREMISES.
IN NO EVENT SHALL LESSOR BE HELD LIABLE FOR ANY ACTION THAT IS TAKEN BY A
CITY OF FORT WORTH EMPLOYEE WHO IS ACTING IN THE COURSE AND SCOPE OF HIS
OR HER EMPLOYMENT.
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
City of Fort Worth Lease Page 2
term of this lease, or subsequent to its termination by either party. 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, Non-Appropriation, Funding and Cancellation Penalty.
8.01 Termination. Lessee shall have the right to terminate this Lease at any time for any reason by
giving Lessor 30 days' written notice prior to the intended termination date. The notice shall
be deemed effective when deposited by Lessee in the United States mail, postage prepaid,
certified mail, return receipt requested, addressed to Lessor.
If this Lease is terminated under this section, or as a result of the expiration of the Lease term
or any renewal period, except for any cancellation penalty under Section 8.03, neither party
shall have any further obligation or liability to the other under this Lease. Lessor and Lessee
shall be bound by the terms, covenants and conditions expressed herein until Lessee
surrenders the Leased Premises, regardless of whether the date of surrender coincides with the
date of termination of the Lease.
8.02 Non-Appropriation and Funding. 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.
8.03 Cancellation Penalty. If Lessee terminates this Lease under this section prior to the
completion of the 60 month term, Lessee shall pay a cancellation penalty as set forth in
Exhibit "C". If this Lease is terminated due to Lessor's default under Section 4, then Lessee
shall not pay any cancellation penalty.
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
Premises caused by the removal of furniture and equipment.
SECTION 11. Governmental Regulations. 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. Provided, however, Lessor (i) shall make all improvements necessary to
make the Leased Premises comply with the Americans With Disabilities Act of 1990 ("ADA"), 42
City of Fort Worth Lease Page 3
U.S.C. § 12101 et seq., AND SHALL FULLY INDEMNIFY AND HOLD HARMLESS LESSEE
FROM AND AGAINST ANY AND ALL CLAIMS, LOSSES, DAMAGES, SUITS, AND
LIABILITY OF EVERY KIND, INCLUDING ALL EXPENSES OF LITIGATION, ARISING
OUT OF OR IN CONNECTION WITH THE LEASED PREMISES' COMPLIANCE, OR
LACK OF COMPLIANCE, WITH ADA, AND (1I) SHALL MAKE ALL IMPROVEMENTS
NECESSARY TO CORRECT AND/ OR ABATE ALL ENVIRONMENTAL HAZARDS OF
THE LEASED PREMISES.
SECTION 12. Acceptance of Leased Premises . Lessee represents that it takes the Leased
Premises in good condition and that the Leased Premises are suitable for the purposes for which they
are being leased.
SECTION 13. 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 14. 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 15. 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:
Elizabeth lbarra and Dennis Kraft
200 Commerce Street
Azle, Texas 76020
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:
Administrator, Real Property Management
City of Fort Worth
927 Taylor 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 16. 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 17. 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 18. 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 19. Holding Over. In the event Lessee remains in possession of the Leased Premises
after the expiration of the lease and without the execution of a new lease, Lessee shall be deemed to
be occupying said premises from month-to-month tenancy at a rental equal to 125% of the annual rent
per month for each month Lessee remains in possession. All the conditions, provisions and
obligations of this lease shall apply during any hold over period.
SIGNED this day of , 20 .
LESSOR: Elizabeth Ibarra and Dennis Kraft LESSEE: TY O T WORTH
By: By:
Elizabeth arraO 1Q istant City Manager
By:
nnis Kraft
City of Fort Worth Lease Page 5
APPROVED AS TO FORM AND LEGALITY:
Assistant City Attorney
ATTEST:
City Secretary
M &C Number : �J 13 35-
Date: 9 (c 0-3
Contract Number:
City of Fort Worth Lease Page 6
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, a N ary Public in nd for the State of Texas,
on this day personally appeared - , known to me to be the
same person whose name is subscribed to the foregoing mstru ent, and acknowledged to me that
,
the same was the act of and that he/she executed the same
as the act of said ��; for the purposes and
l
consideration therein expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of
24_ay .
1 A11 R F
Noiceand for the 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 6Latson, own 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 Libby
Watson and that 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 thisa y' day of
20 0-:3
ROSELLA BARNES
*; NOTARY PUBLIC
, State of Texas
Comm.Exp.03-31-2005
Notary Public in and for the State of Texas
City of Fort Worth Lease Page 8
EXHIBIT A
Legal Description:
Lot: 1R1
Block: 5
Addition: Meacham 3-Way Center
As recorded in:
Volume Page , Deed Records, Tarrant County, Texas
City of Fort Worth Lease Page 9
Exhibit "B"
Tenant Improvements
Landlord shall be responsible for all permits, drawings, labor, supervision and certificates of
occupancy. Landlord shall also be responsible for the following work:
• Demo all walls per attached plan.
• Remove and replace sheetrock which appears to be affected by black mold. Remove and
replace all damaged or stained ceiling tile.
• Remove excess electric conduit and unnecessary light fixtures and electrical panels per
attached plan.
• Remove shower, hand-sink, and water closet as part of demo to create inside parking for
automobiles.
• Remove damaged floor tile, all carpet and vinyl base except in room to be used as lunchroom
• Frame and drywall new walls and tape, bed, and texture new walls to match existing per
attached plan.
• Replace roof. Landlord shall maintain roof during lease period.
• Remove unnecessary ductwork and rework ductwork within the building.
• Remove and reinstall gas lines on roof as required to install new roof.
• Cap drains where shower, water closet, and hand-sink have been removed.
• Install sixty-five phone lines, three fax lines, sixty-five computer ports, two printer ports, and
three covert phone lines, and tenninate wires at phone room. Lessee to do final connection.
Provide four power and phone poles in open area.
• Replace fluorescent light bulbs as necessary to insure light fixtures are operable. Furnish and
install one electric opener for garage door. Furnish and install covers for all open electrical
boxes that remain.
• Paint all walls with two coats of water-based paint. Tenant limited to choice of three pastel
colors. Doors to remain as-is, touched up if necessary.
• Landlord to furnish and install commercial grade carpet per attached plan. Matching bound
carpet base to be installed.
City of Fort Worth Lease Page 10
• Floors to be patched and doors to be trimmed as necessary to accommodate proper installation
of carpet.
• Replace two same-as glass at entry that appear to have bullet-holes in them.
• Resurface parking area in front of building.
• Install a 6-foot tall fence around the front perimeter to secure the parking lot. The fence shall
have a manual gate at the north and south ends of the property of sufficient width to allow
vehicles to enter or exit the lot. The gate should not reduce the amount of available parking.
• Buildings are to be cleaned, and windows to be washed and bathrooms to be cleaned.
City of Fort Worth Lease Page 11
Exhibit "C"
Cancellation Penalty
Month Cancellation Penalty
0 $200,000
1 $196,667
2 $193,333
3 $190,000
4 $186,667
5 $183,333
6 $180,000
7 $176,667
8 $173,333
9 $170,000
10 $166,667
11 $163,333
12 $160,000
13 $156,667
14 $153,333
15 $150,000
16 $146,667
17 $143,333
18 $140,000
19 $136,667
20 $133,333
21 $130,000
22 $126,667
23 $123,333
24 $120,000
25 $116,667
26 $113,333
27 $110,000
28 $106,667
29 $103,333
30 $100,000
31 $96,667
32 $93,333
33 $90,000
34 $86,667
35 $83,333
36 $80,000
37 $76,667
38 $73,333
39 $70,000
City of Fort Worth Lease Page 12
40 $66,667
41 $63,333
42 $60,000
43 $56,667
44 $53,333
45 $50,000
46 $46,667
47 $43,333
48 $40,000
49 $36,667
50 $33,333
51 $30,000
52 $26,667
53 $23,333
54 $20,000
55 $16,667
56 $13,333
57 $10,000
58 $6,667
59 $3,333
60 $0.00
City of Fort Worth Lease Page 13
City of Fort Worth, Texas
"Agar And 4:0u"Cil commu"I'Catio"
DATE REFERENCE NUMBER LOG NAME PAGE
9/2/03 **L-13635 35BMR1ST 1 oft
SUBJECT EXECUTION OF LEASE AGREEMENT BETWEEN ELIZABETH IBARRA AND DENNIS
KRAFT AND THE CITY OF FORT WORTH FOR OFFICE AND WAREHOUSE SPACE
FOR THE POLICE DEPARTMENT
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the City Manager to execute a lease agreement for approximately 24,213 square feet of
office and warehouse space for police operations at a cost of $9,000 per month for the first year;
and
2. Approve the lease term of five years commencing the date the City opens for business in the lease
space, and expiring the last day of the sixtieth full calendar month.
DISCUSSION:
The Engineering Department, Real Property Services Division, at the request of the Police Department,
has negotiated a lease agreement for approximately 24,213 square feet of office and warehouse space.
This move has become necessary due to building limitations at the current leased facility, and will also
represent a long term savings in leasing costs, compared to the current lease rates. The current lease
will expire on September 30, 2003.
The lease term is for five years. The annual rental rate is as follows:
Year Annual Rate Monthly Rate
1 $108,000 $ 9,000
2 $114,000 $ 9,500
3 $120,000 $10,000
4 $126,000 $10,500
5 $132,000 $11,000
The City is responsible for payment of all utilities and telephone service. The landlord is responsible for
the improvements listed in the attached Exhibit "B". The City will be required to pay cancellation
penalties as listed in the attached Exhibit "C", if the department terminates the lease under Section 8 of
the lease agreement prior to completion of the sixty-month term.
In addition to the above costs, the department will incur expenses up to $62,063 to install new
communications equipment, alarm equipment, and moving costs. Funds were not budgeted in the
current year budget for these make-ready costs because the relocation was not certain until recently.
The expense can be absorbed in the current appropriation of the Police Department.
City of Fort Worth, Texas
"Agar And council Communication
DATE REFERENCE NUMBER LOG NAME PAGE
9/2/03 **L-13635 35BMRlST 2 of 2
SUBJECT EXECUTION OF LEASE AGREEMENT BETWEEN ELIZABETH IBARRA AND DENNIS
KRAFT AND THE CITY OF FORT WORTH FOR OFFICE AND WAREHOUSE SPACE
FOR THE POLICE DEPARTMENT
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that funds are available in the 2003-2004 operating budget, as
appropriated, of the General Fund.
JP:k
Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY
Office by: (to)
Joe Paniagua 6140
Originating Department Head:
Ralph Mendoza 48386 (from) APPROVED 09/02/03
GG01 539120 0356300 $170,063.00
Additional Information Contact:
Ralph Mendoza 48386