HomeMy WebLinkAboutResolution No. 2013-039
CITY OF THE COLONY, TEXAS
RESOLUTION NO. 2013- 0' 61
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
THE COLONY, TEXAS, AUTHORIZING THE CITY MANAGER
TO EXECUTE A BUSINESS PROPERTY LEASE CONTRACT BY
AND BETWEEN THE CITY OF THE COLONY AND TXFM, INC.
FOR THE PURPOSE OF LEASING THE PROPERTY LOCATED
AT 6804 MAIN STREET, THE COLONY, TEXAS; PROVIDING
AN EFFECTIVE DATE
WHEREAS, The Colony City Council (Landlord) desires to enter into a Business
Property Lease with TxFM, Inc. (Tennant) for the purpose of TxFM, Inc. leasing the
city's property located at 6804 Main Street, The Colony, Texas; and,
WHEREAS, the term of the lease shall be from September 1, 2013 and ending on
November 30, 2014; and,
WHEREAS, the City Council has determined it to be in the City's best interest to
enter into such lease agreement with the terms as specified therein.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF THE COLONY, TEXAS:
Section 1. That the City Council of the City of The Colony, Texas hereby
authorizes the City Manager to execute a Business Property Lease Contract with TxFM,
Inc. for the purpose of TxFM, Inc. leasing the property located at 6804 Main Street, The
Colony, Texas, a copy of which is attached as Exhibit A, under the terms as specified
therein.
Section 2. That this resolution shall take effect immediately from and after its
passage.
PASSED AND APPROVED by the City Council of the City of The Colony,
Texas, this 16th day of July, 2013.
oe McCo y, Mayor
City of The Colony, Tex
Arj f ate:
F
Christie Wilson, TRMC, City Secretary
VED AS TO FO {
F-
J f Moore, ity Attorney TE X.p`~
BUSINESS PROPERTY LEASE
THIS LEASE is entered into this day of July 2013 between The City of The Colony, Texas, Landlord, and TxFM, Inc, a
Texas Corporation, Tenant.
1. PREMISES. Landlord leases to Tenant the real property located at 6804 Main Street (the "Premises"), containing
approximately 6 000 square feet of area, on the following terms and conditions.
2. TERM. This Lease shall be for a term of 15 months beginning on the First day of September. 2013, and ending on the
30`h day of November. 2014, unless terminated earlier as provided in this Lease.
If for any reason the Premises is delivered to Tenant on any date before or after the term commencement date, rental for the
period between the date of possession and the term commencement date shall be adjusted on a pro rata basis. Such earlier or later taking of
possession shall not change the termination date of this Lease. This Lease shall not be void or voidable in the event of a late delivery by
Landlord, nor shall Landlord be liable to Tenant for any resulting loss or damage.
3. USE OF PREMISES. The Premises are leased to Tenant, and are to be used by Tenant, for the purposes of interviewing
job candidates, holding business meetings, and holdingjob training sessions and for no other purpose. Tenant agrees to use the Premises in
such a manner as to not interfere with the rights of other tenants in the Real Estate, to comply with all applicable governmental laws,
ordinances, and regulations in connection with its use of the Premises, including without limitation all environmental laws, to keep the
Premises in a clean and sanitary condition, and to use all reasonable precaution to prevent waste, damage, or injury to the Premises.
4. RENT.
(a) Base Rent. The total Base Rent under this Lease is One Hundred Seventeen Thousand Three Hundred Seventy Five Dollars
($117.375.00). Tenant agrees to pay rent to Landlord at City ofthe Colony, c/o David Cranford. 6800 Main St_ The Colony
TX 75056 or at any other place Landlord may designate in writing, in lawful money of the United States, in monthly
installments in advance, on the first day of each month, as follows:
For the period from September. L 2013 to November 30, 2014 $7.825.00 per month
(b) Payment of Rent. Tenant agrees to pay the Base Rent as and when due, and all other amounts required to be paid by
Tenant under this Lease. In the event of nonpayment of any amounts due under this Lease, whether or not designated as
rent, Landlord shall have all the rights and remedies provided in this Lease or by law for failure to pay rent.
(c) Late Charge. In the event Tenant fails to make any Rent or Additional Rent payment within five (5) days of its due date,
Tenant shall pay Landlord a late charge of five percent (5%) of the amount due per month in addition to Rent as Additional
Rent. Failure to pay late charge shall be deemed to be a failure to pay the Rent and shall entitle Landlord to exercise all
remedies and recourses available to it under the Lease and under applicable law, or otherwise, for nonpayment of Rent. A
service charge in the amount of $50.00 will be due and payable on any check tendered by or on behalf of Tenant not paid by
the bank when presented, for whatever reason.
(d) Security Deposit. As partial consideration for the execution of this Lease, the Tenant has delivered to Landlord for
Landlord's use and possession the sum of Seven Thousand Eight Hundred Twenty Five Dollars ($7.825.00) as a Security
Deposit. The Security Deposit will be returned to Tenant at the expiration of this Lease if Tenant has fully complied with all
covenants and conditions of this Lease.
5. SERVICES. Landlord shall furnish water, sewer, natural gas, electricity, common area maintenance including lawn care,
property and casualty insurance, an active 20 megabyte fiber connection, and janitorial service to the Premises during normal business
hours, and at such other times as Landlord may deem necessary or desirable, in the manner customary to the Real Estate. Landlord shall
have the right to discontinue any service during any period for which rent is not promptly paid by Tenant. Landlord shall not be liable for
damages, nor shall the rental be abated, for failure to furnish, or delay in furnishing, any service when failure to furnish, or delay in
furnishing, is occasioned in whole or in part by needful repairs, renewals, or improvements, or by any strike or labor controversy, or by any
accident or casualty whatsoever, or by any unauthorized act or default of any employee of Landlord, or for any other cause or causes
beyond the control of Landlord.
6. ASSIGNMENT OR SUBLEASE. Tenant shall not assign this Lease or sublet the whole or any part of the Premises,
transfer this Lease by operation of law or otherwise, or permit any other person except agents and employees of Tenant to occupy the
Premises, or any part thereof; without the prior written consent of Landlord. Landlord may consider any factor it deems relevant in
determining whether to withhold consent including, but not limited to, the following: (a) financial responsibility of the new tenant, (b)
identity and business character of the new tenant, (c) nature and legality of the proposed use of the Premises. Landlord shall have the right
to assign its interest under this Lease or the rent hereunder.
7. TENANT'S IMPROVEMENTS. Tenant shall have the right to place partitions and fixtures and make improvements or
other alterations in the interior of the Premises at its own expense. Prior to commencing any such work, Tenant shall first obtain the
written consent of Landlord for the proposed work. Landlord may, as a condition to its consent; require that the work be done by
Landlord's own employees and/or under Landlord's supervision, but at the expense of Tenant, and that Tenant give sufficient security that
the Premises will be completed free and clear of liens and in a manner satisfactory to Landlord. Upon termination of this Lease, at
Landlord's option, Tenant will repair and restore the Premises to its former condition, at Tenant's expense, or any such improvements,
additions, or alterations installed or made by Tenant, except Tenant's trade fixtures, shall become part of the Premises and the property of
the Landlord. Tenant may remove its trade fixtures at the termination of this Lease provided Tenant is not then in default and provided
further that Tenant repairs any damage caused by such removal.
8. REPAIRS. Landlord agrees to maintain in good condition, and repair as necessary the foundations, exterior walls and the
roof of the Premises and all repairs and replacements to the Premises not required to be made by Tenant, including, but not limited to, all
interior and exterior doors, door frames, windows, plate glass, and the heating, air conditioning, plumbing and electrical systems servicing
the Premises.
Tenant agrees to do all redecorating, remodeling, alterations, and painting required by it during the term of the Lease at its own
cost and expense, to pay for any repairs and replacements to the Premises or the Real Estate made necessary by any negligence or
carelessness of Tenant or any of its agents or employees or persons permitted on the Real Estate by Tenant, and to maintain the Premises in
a safe, clean, neat, and sanitary condition. Tenant shall be entitled to no compensation for inconvenience, injury, or loss of business arising
from the making of any repairs by Landlord, Tenant, or other tenants to the Premises or the Real Estate.
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9. CONDITION OF PREMISES. Except as provided herein, Tenant agrees that no promises, representations, statements, or
warranties have been made on behalf of Landlord to Tenant respecting the condition of the Premises, or the manner of operating the Real
Estate, or the making of any repairs to the Premises. By taking possession of the Premises, Tenant acknowledges that the Premises were in
good and satisfactory condition when possession was taken. Tenant shall, at the termination of this Lease, by lapse of time or otherwise,
remove all of Tenant's property and surrender the Premises to Landlord in as good condition as when Tenant took possession, normal wear
excepted.
10. PERSONAL PROPERTY AT RISK OF TENANT. All personal property in the Premises shall be at the risk of Tenant
only. Landlord shall not be liable for any damage to any property of Tenant or its agents or employees in the Premises caused by any
reason whatsoever, including, without limitation, fire, theft, steam, electricity, sewage, gas or odors, or from water, rain, or snow which
may leak into, issue or flow into the Premises from any part of the Real Estate, or from any other place, or for any damage done to Tenant's
property in moving same to or from the Real Estate or the Premises. Tenant shall give Landlord, or its agents, prompt written notice of any
damage to or defects in water pipes, gas or warming or cooling apparatus in the Premises.
11. LANDLORD'S RESERVED RIGHTS. Without notice to Tenant, without liability to Tenant for damage or injury to
property, person, or business, and without effecting an eviction of Tenant or a disturbance of Tenant's use or possession or giving rise to
any claim for set off or abatement of rent, Landlord shall have the right to:
(a) Change the name or street address of the Real Estate.
(b) Install and maintain signs on the Real Estate.
(c) Have access to all mail chutes according to the rules of the United States Post Office Department.
(d) At reasonable times, to decorate, and to make, at its own expense, repairs, alterations, additions, and improvements,
structural or otherwise, in or to the Premises, the Real Estate, or part thereof, and any adjacent Real Estate, land, street, or
alley, and during such operations to take into and through the Premises or any part of the Real Estate all materials required,
and to temporarily close or suspend operation of entrances, doors, corridors, elevators, or other facilities to do so.
(e) Possess passkeys to the Premises.
(f) Show the Premises to prospective tenants at reasonable times.
(g) Take any and all reasonable measures, including inspections or the making of repairs, alterations, and additions and
improvements to the Premises or to the Real Estate, which Landlord deems necessary or desirable for the safety, protection,
operation, or preservation of the Premises or the Real Estate.
(h) Approve all sources furnishing signs, painting, and/or lettering to the Premises, and approve all signs on the Premises prior
to installation thereof.
(i) Establish rules and regulations for the safety, care, order, operation, appearance, and cleanliness of the Real Estate and to
make modifications thereto.
12. INSURANCE. Tenant shall not use or occupy the Premises or any part thereof in any manner which could invalidate any
policies of insurance now or hereafter placed on the Real Estate or increase the risks covered by insurance on the Real Estate or necessitate
additional insurance premiums or policies of insurance, even if such use may be in furtherance of Tenant's business purposes. In the event
any policies of insurance are invalidated by acts or omissions of Tenant, Landlord shall have the right to terminate this Lease or, at
Landlord's option, to charge Tenant for extra insurance premiums required on the Real Estate on account of the increased risk caused by
Tenant's use and occupancy of the Premises. Each parry hereby waives all claims for recovery from the other for any loss or damage to
any of its property insured under valid and collectible insurance policies to the extent of any recovery collectible under such policies;
provided, that this waiver shall apply only when permitted by the applicable policy of insurance.
13. INDEMNITY. Tenant shall indemnify, hold harmless, and defend Landlord from and against, and Landlord shall not be
liable to Tenant on account of, any and all costs, expenses, liabilities, losses, damages, suits, actions, fines, penalties, demands, or claims of
any kind, including reasonable attorney's fees, asserted by or on behalf of any person, entity, or governmental authority arising out of or in
any way connected with either (a) a failure by Tenant to perform any of the agreements, terms, or conditions of this Lease required to be
performed by Tenant; (b) a failure by Tenant to comply with any laws, statutes, ordinances, regulations, or orders of any governmental
authority; or (c) any accident, death, or personal injury, or damage to, or loss or theft of property which shall occur on or about the
Premises, or the Real Estate, except as the same may be the result of the negligence of Landlord, its employees, or agents.
14. LIABILITY INSURANCE. Tenant agrees to procure and maintain continuously during the entire term of this Lease, a
policy or policies of commercial general liability insurance from a company or companies acceptable to Landlord, at Tenant's own cost and
expense, insuring Landlord and Tenant from all claims, demands or actions; such policy or policies shall in addition to insuring Tenant
protect and name the Landlord and Landlord's managing agent as additional Insured and shall provide coverage in a combined single limit
per occurrence of at least 1 000 000 for claims, demands or actions for bodily injury, death or property damage made by or on behalf of
any person or persons, firm or corporation arising from, related to, or connected with the conduct and operation of Tenant's business in the
Premises, or arising out of and connected with the use and occupancy of the Real Estate by the Tenant. A copy of Tenants Certificate of
Liability Insurance is attached hereto as Exhibit "A" and by execution hereof, Tenants existing coverage is deemed to be acceptable to
Landlord.
15. DAMAGE BY FIRE OR OTHER CASUALTY. If. during the term of this Lease, the Premises shall be so damaged by
fire or any other cause except Tenant's negligent or intentional act so as to render the Premises untenantable, the rent shall be abated while
the Premises remain untenantable; and in the event of such damage, Landlord shall elect whether to repair the Premises or to cancel this
Lease, and shall notify Tenant in writing of its election within sixty (60) days after such damage. In the event Landlord elects to repair the
Premises, the work or repair shall begin promptly and shall be carried on without unnecessary delay. In the event Landlord elects not to
repair the Premises, the Lease shall be deemed canceled as of the date of the damage. Such damage shall not extend the Lease term.
16. CONDEMNATION. If the whole or any part of the Premises shall be taken by public authority under the power of
eminent domain, then the term of this Lease shall cease on that portion of the Premises so taken, from the date of possession, and the rent
shall be paid to that date, with a proportionate refund by Landlord to Tenant of such rent as may have been paid by Tenant in advance. If
the portion of the Premises taken is such that it prevents the practical use of the Premises for Tenant's purposes, then Tenant shall have the
right either (a) to terminate this Lease by giving written notice of such termination to Landlord not later than thirty (30) days after the
taking, or (b) to continue in possession of the remainder of the Premises, except that the rent shall be reduced in proportion to the area of
the Premises taken. In the event of any taking or condemnation of the Premises, in whole or in part, the entire resulting award of damages
shall be the exclusive property of Landlord, including all damages awarded as compensation for diminution in value to the leasehold,
without any deduction for the value of any unexpired term of this Lease, or for any other estate or interest in the Premises now or hereafter
vested in'renant.
17. DEFAULT OR BREACH. Each of the following events shall constitute a default or a breach of this Lease by Tenant:
(a) If Tenant fails to pay Landlord any rent or other payments when due hereunder;
(b) If Tenant vacates or abandons the Premises..
(c) If Tenant files a petition in bankruptcy or insolvency or for reorganization under any bankruptcy act, or voluntarily takes
advantage of any such act by answer or otherwise, or makes an assignment for the benefit of creditors;
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(d) If involuntary proceedings under any bankruptcy or insolvency act shall be instituted against Tenant, or if a receiver or
trustee shall be appointed of all or substantially all of the property of Tenant, and such proceedings shall not be dismissed or
the receivership or trusteeship vacated within thirty (30) days after the institution or appointment; or
(e) If Tenant fails to perform or comply with any other term or condition of this Lease, or any of the rules and regulations
established by Landlord, and if such nonperformance shall continue for a period of ten (10) days after notice thereof by
Landlord to Tenant, time being of the essence.
18. EFFECT OF DEFAULT. In the event of any default or breach hereunder, in addition to any other right or remedy
available to Landlord, either at law or in equity, Landlord may exert any one or more of the following rights:
(a) Landlord may re-enter the Premises immediately and remove the property and personnel of Tenant, and shall have the right,
but not the obligation, to store such property in a public warehouse or at a place selected by Landlord, at the risk and
expense of Tenant.
(b) Landlord may retake the Premises and may terminate this Lease by giving written notice of termination to Tenant. Without
such notice, Landlord's retaking will not terminate the Lease. On termination, Landlord may recover from Tenant all
damages proximately resulting from the breach, including the cost of recovering the Premises and the difference between the
rent due for the balance of the Lease term as though the Lease had not been terminated and the fair market rental value of
the Premises for the balance of the Lease term as though the Lease had not been terminated which sum shall be immediately
due Landlord from Tenant.
(c) Landlord may relet the Premises or any part thereof for any term without terminating this Lease, at such rent and on such
terms as it may, choose. Landlord may make alterations and repairs to the Premises. In addition to Tenant's liability to
Landlord for breach of this Lease, Tenant shall be liable for all expenses of the reletting, for any alterations and repairs
made, and for the rent due for the balance of the Lease term, which sum shall be immediately due Landlord from Tenant.
The amount due Landlord will be reduced by the net rent received by Landlord during the remaining term of this Lease from
reletting the Premises or any part thereof. If during the remaining term of this Lease Landlord receives more than the
amount due Landlord under this sub-paragraph, the Landlord shall pay such excess to Tenant, but only to the extent Tenant
has actually made payment pursuant to this sub-paragraph.
19. SURRENDER - HOLDING OVER. Tenant shall, upon termination of this Lease, whether by lapse of time or otherwise,
peaceably and promptly surrender the Premises to Landlord. If Tenant remains in possession after the termination of this Lease, without a
written lease duly executed by the parties, Tenant shall be deemed a trespasser. If Tenant pays, and Landlord accepts, rent for a period
after termination of this Lease, 'tenant shall be deemed to be occupying the Premises only as a tenant from month to month, subject to all
the terms, conditions, and agreements of this Lease, except that the rent shall be two times the monthly rent specified in the lease
immediately before termination.
20. SUBORDINATION AND ATTORNMENT. Landlord reserves the right to place liens and encumbrances on the Premises
superior in lien and effect to this Lease. This Lease, and all rights of Tenant hereunder, shall, at the option of Landlord, be subject and
subordinate to any liens and encumbrances now or hereafter imposed by Landlord upon the Premises or the Real Estate or any part thereof,
and Tenant agrees to execute, acknowledge, and deliver to Landlord, upon request, any and all instruments that may he necessary or proper
to subordinate this Lease and all rights herein to any such lien or encumbrance as may be required by Landlord.
In the event any proceedings are brought for the foreclosure of any mortgage on the Premises, Tenant will attorn to the purchaser
at the foreclosure sale and recognize such purchaser as the Landlord under this Lease. The purchaser, by virtue of such foreclosure, shall
be deemed to have assumed, as substitute Landlord, the terms and conditions of this Lease until the resale or other disposition of its
interest. Such assumption, however, shall not be deemed in acknowledgment by the purchaser of the validity of any then existing claims of
Tenant against the prior Landlord.
Tenant agrees to execute and deliver such further assurances and other documents, including a new lease upon the same terms
and conditions contained herein, confirming the foregoing, as such purchaser may reasonably request. Tenant waives any right of election
to terminate this Lease because of any such foreclosure proceedings.
21. NOTICES. Any notice or demands given hereunder shall be in writing and personally delivered or sent by first class mail
postage prepaid to Landlord at City of the Colony. c/o Tim Miller. 6800 Main St The Colony TX 75056 with copy to Brown &
Hof ncister. C/O Jeff Moore 740 East Campbell Road Suite 800, Richardson TX 75081 and also to Tenant at Nebraska Furniture Mart.
C/O Ryan Blumkin - Dept. 02160. 700 South 72 Street Omaha. NF 68114 with copy to the Premises or at such other address as either
party may from time to time designate in writing. Each such notice shall be deemed to have been given at the time it shall be personally
delivered to such address or deposited in the United States mail in the manner prescribed herein.
22. COMPLIANCE WITH ADA. Landlord agrees to make necessary alterations to the Premises and Real Estate to the extent
that it does not currently comply with the Americans with Disabilities Act (ADA) and all similar laws and regulations.
23. MISCELLANEOUS.
(a) Binding on Assigns. All terms, conditions, and agreements of this Lease shall be binding upon, apply, and inure to the
benefit of the parties hereto and their respective heirs, representatives, successors, and permitted assigns.
(b) Amendment in Writing. This Lease contains the entire agreement between the parties and may be amended only by
subsequent written agreement.
(c) Waiver-None. The failure of Landlord to insist upon strict performance of any of the terms, conditions and agreements of
this Lease shall not be deemed a waiver of any of its rights or remedies hereunder and shall not be deemed a waiver of any
subsequent breach or default of any of such terms, conditions, and agreements. The doing of anything by Landlord which
Landlord is not obligated to do hereunder shall not impose any future obligation on Landlord nor otherwise amend any
provisions ofthis Lease.
(d) No Surrender. No surrender of the Premises by Tenant shall be effected by Landlord's acceptance of the keys to the
Premises or of the rent due hereunder, or by any other means whatsoever, without Landlord's written acknowledgment that
such acceptance constitutes a surrender.
(e) Captions. The captions of the various paragraphs in this Lease are for convenience only and do not define, limit, describe,
or construe the contents of such paragraphs.
(f) Applicable Law. This Lease shall be governed by and construed in accordance with the laws of the State of Texas.
(g) Partial Invalidity. If any provision of this Lease is invalid or unenforceable to any extent, then that provision and the
remainder of this Lease shall continue in effect and be enforceable to the fullest extent permitted by law.
25. BROKERS. There have been no brokers involved in this transaction and no Brokers are due any type of compensation.
26. OTHER PROVISIONS. Landlord agrees to allow Tenant to remove current inserts in the monument siu that currently
read "City Hall Annex" and "The Colony City by the Lake" and replace with si"age that identifies the Tenant's business and/or trade
name. Landlord agrees to leave the existing personal property in the Premises, including the following items: all furniture includine
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folding tables chairs refrigerator, and microwave. Tenant agrees to return these items in similar condition upon the expiration of this
Lease and Landlord has the right to withhold all or a portion of the security deposit for items that are returned in a condition beyond
ordinary wear and tear. Landlord agrees to change the locks by the commencement of the lease term and give Tenant a minimum of 6
operable keys Tenant shall have two separate options to extend this Lease for one calendar month each at the same terms as initial lease
terms Option Periods'. To exercise each Option Period Tenant shall deliver written notice of such election a minimum of 15 days in
advance of the expiration of then existing lease term
27. TAXES. Tenant shall be liable for all taxes levied or assessed against real property, personal property, furniture or
fixtures laced by Tenant in the Premises if any.
Any additional provisions of this Lease shall be in writing and attached as an addendum hereto.
Until this Lease is executed on behalf of all parties hereto, it shall be construed as an offer to lease by Tenant to Landlord.
IN WITNESS WHEREOF, the parties hereto have executed this Lease the day and year first above written.
The City of The Colony TxFM. Inc.
LANDLORD + TENANT
BY: 6F~ ~t IlefL BY: Az~
P Ryan lumkin
ITS: SS r, t~/t ITS: Vice-President 11 nsimu 4
Exhibit "A"
CERTIFICATE OF LIABILITY INSURANCE Mxyzml
THIS CE MIGATE 15 ISSUED AS A FLITTER OF INFOMA.TION CeILY AND CONFERu d1C1 RIMM UPON THE CERTIFICATE HOLDER THIS
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BELOW. TM CERTWP TE OF MURANCE DOES NOT COMMUTE A CONTRACT BE AIMM THE 1SSUM MURT'.t'lA4 AUfHDR17M
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