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HomeMy WebLinkAboutContract 32252 CITY � Lease Agreement .,UiVTTRACT RACT NO.NO. The State of Texas § § Know all men by these presents: County of Tarrant § The City of Fort Worth, Lessor, a home-rule municipal corporation situated in Tarrant County, Texas (Hereinafter sometimes referred to as"City")acting herein by and through Marc A.Ott,its duly authorized City Manager,and A.H Ernest,Lessee,hereby make and enter into the following lease agreement. WHEREAS,the City of Fort Worth("Lessor"),and A.H Ernest made and entered into a 50 year Lease Agreement("Lease")on February 1, 1982 for property described as Lot 5,Block 3l,Lake Worth Lease Survey,aka 8228 Sandpiper Court;and WHEREAS,A.H.Ernest is deceased and the original Lease Agreement between the parties cannot be located,therefore the City is executing this document to take the place of the original lease. I. For and in consideration of the prompt payment by Lessee, when due of all rents as herein provided, and further for and in consideration of the full and timely performance by Lessee of all Lessee's duties and obligations in strict compliance with the covenants,conditions,and agreements herein contained,City hereby demises and leases to Lessee,and Lessee hereby accepts from City,the following described real property for the term and uses and subject to the conditions set forth herein: Block 31,Lot 5 Lake Worth Lease Survey aka 8228 Sandpiper Court II TERM The term of the lease shall be 50 years commencing February I, 1982 and ending January 31,2032. The City may offer five(5) year extensions to the term of the lease. The Lessee may refuse such extension by giving notice to the City,in writing,within sixty (60)days after receipt of notice of any extension. HI.LESSEE'S RIGHTS AND OBLIGATIONS Lessee shall: A. Pay annual rent to the City of Fort Worth in the sum of$1,254.82, said rent payable in 12 equal installments, one such installment due on the first of each month. B. Pay the rent due under this lease to the Assessor-Collector of Taxes for the City of Fort Worth,or other office designated by the City. C. Pay rent for each year after the first year in an amount that shall be adjusted by eighty percent(80%)of the change in the annual average of the Consumer Price Index U. S. City Average,"all items"index,all urban consumers(CPI-U)from the annual average for the previous calendar year,as published by the Bureau of Labor Statistics for the United States Department of Labor,said adjustment to be computed by dividing the CPI-U for the most recent year by the CPI-U for the immediately preceding year,subtracting one(1) from that quotient, multiplying that result by eight-tenths (0.8) adding one(1)to that product,and multiplying that sum by the rent for the previous year. D. Be able to use the leased land for residential and water recreational purposes,in compliance with applicable zoning ordinances. E. Use and occupy the leased land,in compliance with the laws of the United States of America,the statues of the State of Texas, and the Charter and Ordinances of the City of Fort Worth, whether now in effect or hereinafter adopted so long as any hereinafter adopted ordinance or charter provision is not adopted solely for the purpose of limiting the rights of Lessee and similarly situated lessees. F. Accept the premises in their present condition as being suitable for all purposes of this lease. G. Be deemed to be an independent tenant in possession of the premises and responsible to all parties for his acts and omissions with regard thereto,and the City shall in no way be responsible for any act or omission of the Lessee. H. Indemnify, hold harmless and defend the City,its officers,agents,and employees, from and against any and all claims for damages or injury,including death,to persons or property arising out of or incident to the leasing or the use and occupancy of the leased land by Lessee,his guests or invites. I. Indemnify,hold harmless and defend City from and against any and all mechanic's and materialmen's liens or any other lien, claim or charge imposed upon the leased land or rising as a result of any conduct or activity by the Lessee or anyone on his behalf. J. Provide and maintain suitable methods and means for the disposal of trash, body waste, and excreta, in compliance with applicable sanitation laws and ordinances. K. Not drill or dig any well on the leased land without the prior written approval of the City nor use the water from such well until it has been tested and approved by the appropriate authorities. L. Not commit,or allow to be committed,any waste on the premises,nor create or allow any nuisance to exist on the premises. M. Not keep of permit any animals on the leased premises other than domesticated dogs and cats. IV.LESSOR'S RIGHTS AND OBLIGATIONS The City of Fort Worth shall: A. approve the sale,or assignment(hereinafter collectively assignment)of this lease or remaining term,provided that: 1. all amounts owed to the City hereunder and City ad valorem taxes are paid current to th 2 gtFtt; d q 2. the assignment is evidenced in writing;and 3.in said assignment the asignec expressly accepts,assumes,and agrees to perform all terms,conditions and limitations to be kept and performed by Lessee under this lease;and 4.said writing is executed and acknowledged in recordable form;and 5.said assignment is submitted to the City at the City Manager's Office or such other office designated by the City Manager. Within 10 days of receipt of the assignment the City shall determine whether the assignment is in compliance with provisions A-1 through A-5 above and notify both parties to said assignment if the assignment does not comply with those provisions.The City shall acknowledge compliance with the above provisions on the face of said assignment,and assignment shall then be recorded in the office of the County Clerk of Tarrant County,Texas,at Lessee's expense.Compliance with the provisions set out above shall relieve the Lessee from further liability under this lease. B. have the right to inspect the leased premises for compliance with City of Fort Worth Minimum Building Standards Code, City Ordinance No.8006,at the time of any sale or transfer.The City shall notify the purchaser or assignee in writing of any violations of said ordinance within 10 days of the submission of a proposal assignment to the City.The purchaser or assignee shall not be issued a certificate of occupancy by the City until the requirements of such ordinance have been complied with. C. shall not convey,sell,or transfer its interest in the leased land without allowing the Lessee the opportunity to acquire the leased land unless the conveyance,sale,or transfer is to a government,-il entity with the power to condemn the property for the purpose it is acquired.All transfers shalt be subject to the competitive bidding laws of the State of Texas and the ordinances and charter of the City of Fort Worth. D. provide yearly statements of the rent due hereunder and in such statement specify the number of years remaining in the term of this lease. E. have the right to enter upon the above described property at reasonable times and under reasonable circumstances for the purposes of examining inspecting the leased land to determine whether Lessee has complied with his obligations hereunder.This provision shall not be construed to authorize entry into residences or other buildings on the leased land except where such entry is specifically authorized by the provisions of this]case,the Statutes of the State of Texas,or the ordinances of the City of Fort Worth. F. warrant that Lessee will have quiet enjoyment and peaceful possession of the leased land,and that the City will defend the Lessee in such quiet enjoyment and peaceful possession during the term of this Icasc. G.The City Manager shall review this]case prior to each fifth anniversary and shal I make rccom mendations to the City Counci I regarding extensions. V. LESSOR'S OPTIONS The City of Fort Worth may,in the event that Lessee shall give notice to the City that a financial hardship exists in the payment of rentals due hereunder,the City Manager may waive any portion of that year's rent after consideration of said hardship. Lessee shall have the right to present his request to the City Council of Fort Worth should the City Manager deny the request. Any rents waived as a result of such hardship and remaining unpaid shall constitute a lien against the Lessee's im- provements and such unpaid rents shall bear interest at the current legal rate. VI. LESSEE'S OPTIONS Lessee may: A. sell, assign, or sublet this lease or remaining term thereof. B. construct new structures and enlarge existing structures on the leased land provided that such construction is in accordance with all applicable City Codes and Ordinances. C. make alterations, remodel, and make improvements to existing structures and the leased land, provided that such actions shall be in accordance with applicable City Codes and Ordinances. D. terminate this lease without reimbursement for Lessee's structures and improvements at any time by giving the City 30 days notice of intention to terminate. VII. EXPIRATION OF LEASE A. Upon expiration of the term of this lease the City shall pay to the Lessee an amount equal to the then market value of any structures or improvements heretofore made or erected on the leased premises,except that paymeots for any new structure and enlargements to existing structures made or erected during the final 35 years of the lease term will be a pro rata amount based on the number of years the structure or improvements are in place or the number of years remaining on the lease at the time said structure or improvements were made,whichever is greater, times 2.86 percent,never to exceed 100e/o of the market value of the new structure and the enlargement to the existing structure. B. Replacement of all or part of structures destroyed in whole or in part by fire,explosion or act of God are deemed structures or improvements heretofore made or erected on the leased premises. C. The City shall pay the Lessee the market value of the structures and improvements as defined above upon possession of the property.Acceptance of the amount offered by the City does not forfeit Lessee's right to dispute the amount paid, nor shall any acceptance constitute a waiver of any legal remedy Lessee may have value. In the event that a court of competent jurisdiction determines that the amount paid to the7b�yis`•'n excess of market value of such structures or improvements,the Lessee shall promptly refund suy. 2. .. t VIII. TERMINATION OF LEASE A. In the event the Lessee: I. is in arrears in the payment of the rents,or other amounts agreed to be paid under the terms of this lease;or 2. has failed to perform any obligation under this lease,then the City may give notice to the Lessee of termina- tion of the lease by default,said notice to specify in detail the defaults upon which the termination would be based. In said notice the City shall demand that anions be taken within 45 days to cure the default or defaults upon which the termination is based or the lease shall be terminated. B. In the event of a default by Lessee,and said Lessee does not take action to cure the default within 45 days of the notice from the City, the lease may be terminated and the City shall have no duty to reimburse the Lessee for struc- tures or improvements to the leased land.The Lessee shalfhave the right to remove said structure,improvements,and personal property within 90 days from the date of lease termination by default,and shall vacate the leased land at the end of said 90 days. All such property not removed within 90 days shall become the property of the City. C. In the event rentals to be paid under the terms of this lease is not paid when due,an additional late penalty of 1.507o per month shall be added to the amount due. D. Upon termination of this lease or expiration of the term of this lease, Lessee shall be entitled and authorized to remove from the premises all items of personal property belonging to Lessee not permanently affixed to the realty and all structures and improvements for which no reimbursement is made under the terms of this lease. IX. MORTGAGES A. So long as no default exists under the terms of this lease,the Lessee or any Assignee may mortgage his leasehold estate and improvements situated thereon to secure a loan or loans of money actually made,or that will be made, or any extension or renewal of the same. B. Such mortgage or deed of trust shall be in every respect subject,subservient and subordinate to all the conditions and covenants of this lease. C. In the event of a default that could result in the termination of this lease without reimbursement to Lessee for the improvements and structures on the leased land,the City shall give notice to the mortgagee as is required to be given to the Lessee, and said mortgagee shall have the right to cure said default and/or perform the terms and conditions of this lease. D. A mortgagee or trustee under a deed of trust shall have the same right and power to assign this lease,in conjunc- tion with a trustee's sale or transfer to satisfy Lessee's obligation to a mortgagee,as does the Lessee under the terms of this lease. E. At anv time the City is to pay the Lessee for structures or improvements on the leased land, the City shall give notice to each mortgagee of that payment, and said mortgagee shall have the right to receive payment for an\ outstanding obligation secured by mortgage or deed of trust on the leasehold and improvements. F. The City shall be required to give such notice only if the mortgagee has, in writing,informed the City of its in- terest and has supplied an address for said notice. X. OWNERSHIP OF IMPROVEMENTS All structures and improvements situated on the leased land when this lease is entered into are,and shall continue to be, the property of the Lessee, and all improvements hereinafter made by the Lessee on the leased land shall be the property of the Lessee. XI. SUCCESSORS IN INTEREST A. In the event of the death of a Lessee, his successors and estate shall succeed to his interest under this lease,and those entitled by law to succeed to the Lessee's interest in the lease shall continue to enjoy the rights and benefits hereunder of the deceased Lessee; B. In the event that the Lessee or his Assignee is adjudicated a bankrupt, said lease may be assigned as provided above, and any Assignee shall assume the duties and liabilities as set out above. XII. VENUE Venue of any action brought hereunder shall lie exclusively in Tarrant County,Texas. XIII. NOTICE A. Any notice required under this lease,unless otherwise specified,shall be given by depositing in the United States Mail as certified mail, postage prepaid, addressed to the: 1. Lessee's or Assignee's at the address shown on this lease unless said Lessee or Assignee has furnished to the City, in writing, instructions to mail notices to another address; 2. City Manager of the City of Fort Worth, City Hall, Fort Worth, Texas; 3. Mortgagee at the address supplied to the City in writing for the mailing of such notice. XIV.CONCLUSION This instrument represents the entire agreement between the parties concerning the leasing of the leased land and shall be binding upon and shall be to the benefit of the parties hereto, their successors, assigns, and legal represen- tatives,and all prior leases,assignments,or agreements of any nature concerning the leased land or property situated thereon are superseded by the terms of this lease. EXECUTED at Fort Worth,Tarrant County,Texas,this day of '19- 3. t � i I ATTEST: C O ;Aftt, ORT B fy\adnsh� City Secretary ' MarSsistant City Manager APPROVED O FORM.-AND LEGALITY: i /i,S,y4,tCityArlorney Cynthia B. Garcia Lessee A. H. Ernest /� STATE OF TEXAS § Contract Authorization COUNTY OF TARRANT§ BEFORE ME,the undersigned authority,a Notary Public in and for the State of Texas,on this day personally appeared Marc A. Ott ,known to me to be the person whose name is subscribed to the foregoing instrument,and acknowledged to me that he executed the same as the act and deed of the City of Fort Worth,a municipal corporation of Tarrant County Texas,and as Assistant City Manager thereof, and for the purposes and consideration therein expressed and in the capacity therein stated. r Ij GIVEN TINDER MY HAND AND SEAL OF OFFICE this day of A.D. _. HETTIE LANE f ,`r'/l e C_ '14--f IS- My COMMISSION FXPIRES. +, July 26,2007 Notary Public in and for the State of Texas My Commission Expires: -CI r1 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 known to me to be the person whose name is subscribed to the foregoing instrument,and acknowledged to me that he executed the same for the purposes and con- sideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of A.D. 19 Notary Public in and for the State of Texas My Commission Expires: A. City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 12/16/2003 DATE: Tuesday, December 16, 2003 LOG NAMF,: 30LEGAL DESCRIP REFERENCE NO.: **L-13727 SUBJECT: Authorization of the Amendment of the Legal Descriptions of the Lease Lots for the Lake Worth Lease Survey Properties to Reflect the Legal Description of the Current Plats Filed by the City'of Fort Worth RECOMMENDATION: It is recommended that the City Council authorize the amendment of the legal descriptions of the lease lots for the Lake Worth lease survey properties in Blocks 1-32 to reflect the legal descriptions of the current plats filed by the City of Fort Worth. DISCUSSION: The original Lake Worth lease survey was completed in 1956. Although the Lake Worth lease lots were surveyed at that time, no plats were recorded. The City is making available for sale currently leased residential lots that are or will be served by municipal water or sewer service. On February 19, 2002, (M&C L-13249), the City approved the Option to Purchase and Purchase Agreement, which will transfer eligible property to private ownership. In order to sell the property under the Option to Purchase and Purchase Agreement, the City must plat the residential properties. Platting the leased lots has resulted in changing some of the legal descriptions and the boundary lines. The leases must be amended to reflect the new legal descriptions as designated on the plat. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that this action will have no material effect on City funds. TO Fund/Account/Centers FROM Fund/Account/Centers Submitted for City Manager's Office by: Marc Ott (8476) Originating Department Head: A. Douglas Rademaker (6157) Additional Information Contact: A. Douglas Rademaker (6157) T !AT �f� A r T%Y-C'f riT-