HomeMy WebLinkAboutResolution No. 2011-082
CITY OF THE COLONY, TEXAS
RESOLUTION NO. 2011-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
THE COLONY, TEXAS, AUTHORIZING THE CITY MANAGER
TO EXECUTE THE 2011-2012 LEASE AGREEMENT WITH
AMERICAN LEGION HOLLEY-RIDDLE POST 21 TO LEASE A
PORTION OF THE PROPERTY LOCATED AT 6303 MAIN
STREET, THE COLONY, TEXAS; PROVIDING AN EFFECTIVE
DATE
WHEREAS, That the City Council of the City of The Colony, Texas, approved a
building use policy establishing guidelines for the use and rental of City facilities; and
WHEREAS, The Colony City Council has determined it to be in the best interest
of its citizens to enter into the 201 1-2012 Lease Agreement with American Legion
Holley-Riddle Post 21 for the use of the property located at 6303 Main Street, The
Colony, Texas.
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 an Agreement with American Legion Holley-
Riddle Post 21 for the use of a portion of the property located at 6303 Main Street, The
Colony, Texas.
Section 2. That a copy of the 201 1-2012 Lease Agreement is attached to this
resolution as Exhibit A.
Section 3. 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 6th day of December, 2011.
- CCU
J e M cC.ourry, Mayor
ity of The Colony, Texas
)T "'ST:
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lristie Wilson, TRMC, City Secretary
T'
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-APPROVED AS TO FORINI:
Jeff Moor~e, City Attorney
LEASE AGREEMENT
1. PARTIES: The parties to this lease are:
The owner of the Property, Landlord, The City of The Colony Texas; and Tenant: American
Legion Holley-Riddle Post 21
2. PROPERTY: Landlord leases to Tenant the following real property:
A portion of the property at 6303 Main Street The Colony, TX 75056 more particularly
identified as area A in exhibit "A", referred to herein as the "Property".
3. TERM:
Primary Term: The primary term of this lease begins and ends as follows:
Commencement Date: December 1, 2011 Expiration Date: September 30, 2017
4. RENEWAL AND NOTICE OF TERMINATION:
A. This lease must be renewed on an annual basis consistent with the City's fiscal year
Tenant must notify the City, in writing, no later than 45 days before the Expiration Date
of their intention to renew the lease at the end of the current term.
B. Oral notice of termination is not sufficient under any circumstances. Time is of the
essence for providing notice of termination (strict compliance with dates by which notice
must be provided is required).
5. RENT:
A. Monthly Rent: Tenant will pay Landlord monthly rent in the amount of $150.00 for each
full month during this lease. The first full month's rent is due and payable not later than
December 1, 2011. Thereafter, Tenant will pay the monthly rent so that Landlord receives
the monthly rent on or before the first day of each month during this lease. Weekends,
holidays, and mail delays do not excuse Tenant's obligation to timely pay rent.
B. Place of Payment: Tenant will remit all amounts due to Landlord under this lease to the
following person or entity at the place stated and make all payments payable to the named
person or entity. Landlord may later designate, in writing, another person or place to
which Tenant must remit amounts due under this lease.
Name: City of The Colony, Texas
Address: Parks and Recreation Department
5151 North Colony Boulevard, The Colony, TX 75056
C. Method of Payment:
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(1) Tenant must pay all rent timely and without demand, deduction, or offset, except as
permitted by law or this lease.
(2) Time is of the essence for the payment of rent (strict compliance with rental due dates
is required).
(3) If Tenant fails to timely pay any amounts due under this lease or if any check of
Tenant is not honored by the institution on which it was drawn, Landlord may require
Tenant to pay such amount and any subsequent amounts under this lease in certified
funds. This paragraph does not limit Landlord from seeking other remedies under this
lease for Tenant's failure to make timely payments with good funds.
D. Rent Increases: There will be no rent increases through the primary term. Landlord may
increase the rent that will be paid through any subsequent term by providing at least 45
days written notice to Tenant.
6. LATE CHARGES:
A. If Landlord does not actually receive a rent payment in the full amount at the designated
place of payment by 11:59 p.m. on the 1st day of the month in which it is due, Tenant
will pay Landlord for each late payment:
(1) an initial late charge on the 5th day of the month equal to $10.00
and
(2) additional late charges of $5.00 per day beginning on the 6th day of the month until
rent and late charges are paid in full. Total late charges (initial and additional) may
not exceed $50.00 in any one month.
B. For the purposes of paying rent and any late charges, the mailbox is not the agent for
receipt for Landlord (the postmark date is not the date Landlord receives the payment).
The parties agree that the late charge is based on a reasonable estimate of uncertain
damages to the Landlord that are incapable of precise calculation and result from late
payment of rent. Landlord's acceptance of a late charge does not waive Landlord's right
to exercise remedies under Paragraph 19.
7. RETURNED CHECKS: Tenant will pay Landlord $25.00 for each check Tenant tenders to
Landlord which is returned or not honored by the institution on which it is drawn for any reason,
plus any late charges until Landlord receives payment. Tenant must make any returned check
good by paying such amount(s) plus any associated charges in certified funds.
8. SECURITY DEPOSIT:
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A. Security Deposit: On or before execution of this lease, Tenant will pay a security deposit
to Landlord in the amount of $360.00. "Security deposit" has the meaning assigned to
that term in Section 92.102 of the Texas Property Code.
B. Interest: No interest or income will be paid to Tenant on the security deposit. Landlord
may place the security deposit in an interest-bearing or income-producing account and
any interest or income earned will be paid to Landlord or Landlord's representative.
C. Refund: Tenant must give Landlord at least forty five (45) days written notice of
surrender before Landlord is obligated to refund or account for the security deposit.
D. Deductions:
(1) Landlord may deduct reasonable charges from the security deposit for:
(a) damages to the Property, excluding normal wear and tear;
(b) costs for which Tenant is responsible to clean, deodorize, and maintain the
Property;
(c) unpaid or accelerated rent;
(d) unpaid late charges;
(e) replacing unreturned keys, garage door openers, security devices, or other
components;
(f) the removal of unauthorized locks or fixtures installed by Tenant;
(g) Landlord's cost to access the Property if made inaccessible by Tenant;
(h) packing, removing, and storing abandoned property;
(i) removing abandoned or illegally parked vehicles;
0) costs of reletting (as is provided for in Paragraph 19), if Tenant is in default;
(k) attorney's fees, costs of court, costs of service, and other reasonable costs
incurred in any legal proceeding against Tenant;
(1) mailing or delivery costs associated with sending notices to Tenant for any
violations of this lease; and
(m)any other unpaid charges or fees or other items Tenant is responsible to pay under
this lease.
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(2) If deductions exceed the security deposit, Tenant will pay to Landlord the excess
within 10 days after Landlord makes written demand.
9. ACCESS BY LANDLORD: Landlord shall have access to the building at all times in order
to facilitate the rental of the available rental space, routine and emergency maintenance, and
necessary storage of any city property associated with the use of the building.
10. MOVE-OUT:
A. Move-Out Condition: When this lease ends, Tenant will surrender the Property in the
same or similar condition as when received, normal wear and tear expected. Tenant will
leave the Property in a clean condition free of all trash, debris, and any personal property.
Tenant may not abandon the Property.
B. Definitions:
(1) "Normal wear and tear" means deterioration that occurs without negligence,
carelessness, accident, or abuse outside of normal expectations associated with the
normal use of the facility.
(2) "Surrender" occurs when all occupants have vacated the Property, in Landlord's
reasonable judgment, and one of the following events occurs:
(a) the date Tenant specifies as the move-out or termination date in a written
notice to Landlord has passed; or
(b) Tenant returns keys and access devices that Landlord provided under this
lease.
(3) "Abandonment" occurs when all of the following occur:
(a) all occupants have vacated the Property, in Landlord's reasonable judgment;
(b) Tenant is in breach of this lease by not timely paying rent; and
(c) Landlord has delivered written notice to Tenant, by affixing it to the inside of
the main entry door or if the Landlord is prevented from entering the Property
by affixing it to the outside of the main entry door, stating that Landlord
considers the Property abandoned, and Tenant fails to respond to the affixed
notice by the time required in the notice, which will not be less than 2 days
from the date the notice is affixed to the main entry door.
C. Personal Property Left After Move-Out:
(1) If Tenant leaves any personal property in the Property after surrendering or
abandoning the Property Landlord may:
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(a) dispose of such personal property in the trash or a landfill;
(b) give such personal property to a charitable organization; or
(c) store and sell such personal property by following procedures in Section
54.045(b)-(e) of the Texas Property Code
(2) Tenant must reimburse Landlord all Landlord's reasonable costs under Paragraph
IO(C)(1) for packing, removing, storing, and selling the personal property left in the
Property after surrender or abandonment.
11. PROPERTY MAINTENANCE:
A. Tenant's General Responsibilities: By taking possession of the Property, Tenant shall be
deemed to have accepted the Property "AS IS." Tenant, at Tenant's expense, must:
(1) keep the Property clean and sanitary;
(2) promptly dispose of all garbage in appropriate receptacles;
(3) supply and replace all batteries for smoke detectors, carbon monoxide detectors and
other devices (of the same type and quality that are in the property on the
Commencement Date);
(4) take action to promptly eliminate any dangerous condition on the Property;
(5) take all necessary precautions to prevent broken water pipes due to freezing or other
causes;
(6) remove any standing water;
(7) know the location and operation of the main water cut-off valve and all electric
breakers and how to switch the valve or breakers off at appropriate times to mitigate
any potential damage; and
(8) promptly notify Landlord, in writing, of all needed repairs.
B. Prohibitions: If Tenant installs any fixtures on the Property, authorized or unauthorized,
such as additional smoke detectors, locks, alarm systems, cables, satellite dishes, or other
fixtures, such fixtures will become the property of the Landlord. Except as otherwise
permitted by law, this lease, or in writing by Landlord, Tenant may not:
(1) remove any part of the property or any of Landlord's personal property from the
Property;
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(2) remove, change, add, or rekey any lock;
(3) make holes in the woodwork, floors, or walls, except that a reasonable number of
small nails may be used to hang pictures in sheetrock and grooves in paneling;
(4) install additional phone or video cables, outlets, antennas, satellite receivers, or alarm
systems;
(5) keep or permit any material which causes any liability or fire and extended insurance
coverage to be suspended or canceled or any premiums to be increased;
(6) dispose of any environmentally detrimental substance (for example, motor oil or
radiator fluid) on the Property; or
(7) cause or allow any lien to be filed against any portion of the Property.
C. Failure to Maintain: If Tenant fails to comply with this Paragraph Landlord may, in
addition to exercising Landlord's remedies under Paragraph 19, perform whatever action
Tenant is obligated to perform and Tenant must immediately reimburse Landlord the
reasonable expenses that Landlord incurs.
1.2. REPAIRS:
A. Repair Requests: All requests for repairs must be in writing and delivered to Designated
Agent or Landlord. If Tenant is delinquent in rent at the time a repair notice is given,
Landlord is not obligated to make the repair.
B. Completion of Repairs:
(1) Tenant may not repair or cause to be repaired any condition listed in Paragraph
12(C)(1), regardless of the cause, without Landlord's permission. All decisions
regarding repairs, including the completion of any repair, whether to repair or replace
the item, will be at Landlord's sole discretion.
(2) Landlord is not obligated to complete a repair on a day other than a business day
unless required to do so by the Property Code.
C. Payment of Repair Costs: Repair costs will be paid as follows:
(1) Repairs that Landlord will Pay Entirely: Landlord will pay the entire cost to repair:
(a) a condition caused by the Landlord or the negligence of the Landlord;
(b) wastewater stoppages or backups caused by deterioration, breakage, roots,
ground condition, faulty construction, or malfunctioning equipment.
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(c) a condition that adversely affects the health or safety of an ordinary tenant
which is not caused by Tenant, an occupant, a member of Tenant's family, or
a guest or invitee of Tenant; and
(d) a condition in the following items which is not caused by Tenant or Tenant's
negligence:
(1) heating and air conditioning systems;
(2) electrical repairs;
(3) damage to doors, windows, or screens
(4) water heaters; or
(5) water penetration from structural defects.
(2) Repairs that Tenant will Pay Entirely: Tenant will pay the entire cost to repair:
(a) a condition caused by Tenant, an occupant, a member of Tenant's
organization, or a guest or invitee of Tenant (a failure to timely report an item
in need of repair or the failure to properly maintain an item may cause damage
for which Tenant may be responsible);
(b) damage from wastewater stoppages caused by foreign or improper objects in
lines that exclusively service the Property; and
(c) damage from windows or doors left open.
13. SECURITY DEVICES AND EXTERIOR DOOR LOCKS: All notices or requests by
Tenant for rekeying, changing, installing, repairing, or replacing security devices must be in
writing. Installation of additional security devices or additional rekeying or replacement of
security devices desired by Tenant will be paid by Tenant in advance and may be installed only
by contractors authorized by Landlord.
14. SMOKE DETECTORS: Subchapter F, Chapter 92, Property Code requires the Property to
be equipped with smoke detectors in certain locations. Requests for additional installation,
inspection, or repair of smoke detectors must be in writing. Disconnecting or intentionally
damaging a smoke detector or removing a battery without immediately replacing it with a
working battery may subject Tenant to civil penalties and liability for damages and attorney fees
under Section 92.2611 of the Texas Property Code.
15. LIABILITY: Unless caused by Landlord, Landlord is not responsible to Tenant, Tenant's
guests, members, or occupants for any damages, injuries, or losses to person or property caused
by fire, flood, water leaks, ice, snow, hail, winds, explosion, smoke, interruption of utilities,
Page 7 of 12 LEASE
theft, burglary, robbery, assault, vandalism, other persons, condition of the Property,
environmental contaminants (for example, carbon monoxide, asbestos, radon, lead-based paint,
mold, fungus, etc.), or other occurrences or casualty losses. Tenant will promptly reimburse
Landlord for any loss, property damage, or cost of repairs or service to the Property caused by
Tenant, Tenant's guests, or any occupants.
16. HOLDOVER: If Tenant fails to vacate the Property at the time this lease ends Tenant will
pay Landlord rent for the holdover period and indemnify Landlord and prospective tenants for
damages, including but not limited to lost rent, lodging expenses, costs of eviction, and
attorney's fees. Rent for any holdover period will be three (3) times the monthly rent, calculated
on a daily basis, and will be immediately due and payable daily without notice or demand.
17. SUBORDINATION: This lease and Tenant's leasehold interest are and will be subject,
subordinate, and inferior to: (i) any lien or encumbrance now or later placed on the Property by
Landlord; (ii) all advances made under any such lien or encumbrance; (iii) the interest payable
on any such lien or encumbrance; (iv) any and all renewals and extensions of any such lien or
encumbrance; (v) any restrictive covenant; and (vi) the rights of any owners' association
affecting the Property.
18. CASUALTY LOSS OR CONDEMNATION: Section 92.054 of the Texas Property Code
governs the rights and obligations of the parties regarding a casualty loss to the Property. Any
proceeds, payment for damages, settlements, awards, or other sums paid because of a casualty
loss to the Property will be Landlord's sole property. For the purpose of this lease, any
condemnation of all or a part of the property is a casualty loss.
19. DEFAULT:
A. If Landlord fails to comply with this lease, Tenant may seek any relief provided by law.
B. If Tenant fails to comply with this lease, Tenant will be in default and:
(1) Landlord may terminate Tenant's right to occupy the Property by providing Tenant
with at least ten (10) days written notice to vacate;
(2) all unpaid rents which are payable during the remainder of this lease or any renewal
period will be accelerated without notice or demand; and
(3) Tenant will be liable for:
(a) any lost rent;
(b) Landlord's cost of reletting the Property including but not limited to leasing
fees, advertising fees, utility charges, and other fees reasonably necessary to
relet the Property;
(c) repairs to the Property for use beyond normal wear and tear;
Page 8 of 12 LEASE
i
(d) all Landlord's costs associated with eviction of Tenant, including but not
limited to attorney's fees, court costs, costs of service, and prejudgment
interest;
(e) all Landlord's costs associated with collection of amounts due under this
lease, including but not limited to collection fees, late charges, and returned
check charges; and
(f) any other recovery to which Landlord may be entitled by law.
C. Notice to vacate under Paragraph 19(B)(1) may be by any means permitted by Section
24.005 of the Texas Property Code.
D. Landlord will attempt to mitigate any damage or loss caused by Tenant's breach by
attempting to relet the Property to acceptable tenants and reducing Tenant's liability
accordingly.
20. EARLY TERMINATION: This lease begins on the Commencement Date and ends on the
Expiration date unless: (i) renewed under Paragraph 4; (ii) extended by written agreement of the
parties; or (iii) terminated earlier under Paragraph 19, by agreement of the parties, applicable
law, or this Paragraph.
A. Early Termination Option: Tenant(s) in good standing (those who are in compliance
with the lease) have the option to terminate this lease prior to the normal end of term
or during any future renewal by providing the Landlord all of the following: a) a
minimum 45 day written notice; b) providing the last date of occupancy; and c)
submitting certified funds (Cashier's Check, money orders or wire transfer) as an
"Early Termination Fee" in the amount of 150% of one month's rent at the time
notice is provided. Rent will be prorated on a daily basis through the revised end of
term. Tenant is required to conform to all other terms of the lease or the Early
Termination Option will be forfeit and the tenant will be responsible for the full
amount of rent as allowed by the lease.
B. Assignment and Subletting:
(1) Tenant may not assign this lease or sublet the Property without Landlord's
written consent.
(2) If Tenant requests an early termination of this lease under Paragraph 20(A),
Tenant may attempt to find a replacement tenant and may request Landlord to
do the same. Landlord may, but is not obligated to, attempt to find a
replacement tenant under this paragraph.
(3) Any assignee, subtenant, or replacement tenant must, in Landlord's discretion,
be acceptable as a tenant and must sign: (a) a new lease with terms not less
Page 9 of 12 LEASE
favorable to Landlord than this lease or otherwise acceptable to Landlord; (b)
a sublease with terms approved by Landlord; or (c) an assignment of this lease
in a form approved by Landlord.
(4) Unless expressly stated otherwise in an assignment or sublease, Tenant will
not be released from Tenant's obligations under this lease because of an
assignment or sublease. An assignment of this lease or a sublease of this lease
without Landlord's written consent is voidable by Landlord.
21. ATTORNEY'S FEES: Any person who is a prevailing party in any legal proceeding
brought under or related to the transaction described in this lease is entitled to recover
prejudgment interest, attorney's fees, costs of service, and all other costs of the legal proceeding
from the non-prevailing party.
22. AGREEMENT OF PARTIES:
A. Entire Agreement: There are no oral agreements between Landlord and Tenant. This
lease contains the entire agreement between Landlord and Tenant and may not be
changed except by written agreement.
B. Binding Effect: This lease is binding upon and inures to the benefit of the parties to this
lease and their respective heirs, executors, administrators, successors, and permitted
assigns.
C. Joint and Several: All Tenants are jointly and severally liable for all provisions of this
lease. Any act or notice to, refund to, or signature of, any one or more of the Tenants
regarding any term of this lease, its extension, its renewal, or its termination is binding on
all Tenants executing this lease.
D. Waiver: Landlord's past delay, waiver, or non-enforcement of a rental due date or any
other right will not be deemed to be a waiver of any other breach by Tenant or any other
right in this lease.
E. Severable Clauses: Should a court find any clause in this lease unenforceable, the
remainder of this lease will not be affected and all other provisions in this lease will
remain enforceable.
F. Controlling Law: The laws of the State of Texas govern the interpretation, validity,
performance, and enforcement of this lease. Venue for any action arising under this lease
shall lie in the state district and county courts of Denton. County, Texas.
G. Signage. Tenant shall have the right to erect signs on any portion of the Property only in
accordance with applicable laws, ordinances, and regulations.
H. Taxes. Landlord shall be liable for any taxes levied or accessed against the Property,
excluding any taxes levied or assessed for any personal property, furniture, or fixtures
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placed by the Tenant on the Property. Tenant shall be liable for all taxes levied or
assessed against any personal property, furniture or fixtures placed by Tenant on the
Property.
Executed and agreed to this 0 day of 2011.
X
Tro well Commafi-d&, American Legion Holley-
y Manager, City of the Colony Riddle Post 21
Approved as to form:
Jeff Moore, City Attorney
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Exhibit "A"
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