RES NO 02-07-2013 CITY OF VAN BUREN, ARKANSAS n
RESOLUTION NO. 2 1 2013
BE IT ENACTED BY THE CITY COUNCIL, FOR THE CITY OF VAN BUREN,
ARKANSAS, A RESOLUTION TO BE ENTITLED:
A RESOLUTION APPROVING A LEASE AGREEMENT
WITH AAA MOWER MART, LLC.
WHEREAS, the City of Van Buren purchased property located at 804 Fayetteville
Road, Van Buren, Arkansas; and
WHEREAS, AAA Mower Mart, LLC. is currently occupying the building under a lease
with the previous ownership; and
WHEREAS, the AAA Mower Mart, LLC. desires to enter into an updated Lease
Agreement with the City of Van Buren; and
WHEREAS, the City Council believes it to be in the best interest of the City and its
citizens to execute an updated Lease Agreement with AAA Mower Mart,
LLC.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF VAN
BUREN, ARKANSAS, THAT:
SECTION 1: The City Council hereby authorizes the Mayor to enter into the attached
Lease Agreement with AAA Mower Mart, LLC. and authorizes the Mayor
and City Clerk to execute said Lease Agreement on behalf of the City of
Van Buren, Arkansas.
IN WITNESS WHEREOF, the City of Van Bu Arkansas, by its City Council, did
pass, approve, and adopt, by a vote of 5 for and I agai st, the foregoing Resolution at its
regular meeting held on the 25 day of February 2013.
e bert,D. Free .n
Mayor 1
ATTESTED: IRO r i i i RM:
aye ft
Barbie Curtis C. +ice 'Settles
City Clerk/Treasurer City Attorney
COMMERCIAL LEASE AGREEMENT
This Lease Agreement "Lease is made and effective the day of 2013 by and
between the City of Van 13uren "Landlord and AAA Mower Mart LLC "Tenant
Landlord is the owner of land and improvements commonly known and numbered as 804
Fayetteville Road, Van Buren, AR 72956, specifically the smaller building located at the back of
the property, hereinafter the "Premises" or the "Leased Premises."
Landlord desires to lease the Leased Premises to Tenant. and Tenant desires to lease the
Leased Premises from Landlord for the term, at the rental and upon the covenants, conditions
and provisions herein set forth.
THEREFORE; in consideration of the mutual promises herein, contained and other good and
valuable consideration, it is agreed:
1. Terns.
A. Landlord hereby leases the Leased Premises to Tenant. and Tenant hereby leases the
same from Landlord, beginning immediately and ending at a date to be determined based on construction
of the new City Police Department. Landlord agrees to give sixty (60) days notice to Vacate the premises.
B. Tenant must exercise the right of first refusal within ten days of receiving notice that the Landlord
intends to sell the Leased Premises. If Tenant fails to exercise his option with ten days or receiving notice,
his option is waived. If purchased by Tenant, the Landlord will retain all rental payments made by Tenant
and no part thereof shall be applied to the purchase price.
2. Rental.
A. Tenant shall pay to Landlord rental of $1,000.00 per month. Each payment shall be due in advance
on the first day of each calendar month during the lease term to Landlord at 1003 Broadway, Van Buren,
AR 72956 or at such other place designated y written notice from Landlord. The rental payment amount
for any partial calendar months included in the lease term shall be prorated on a daily basis.
3. Use.
The Leased Premises may be used d occupied by Tenant for any lawful purpose
which complies with applicable zoning ordinances. Notwithstanding the forgoing, Tenant
shall not use the Leased Premises for the purposes of storing, manufacturing or selling any
explosives, flammables or other inherently dangerous substance, chemical, thing or device.
4. Hazardous Materials.
Tenant shall not cause or permit the release or disposal of any
hazardous substances, wastes, or materials, or any medical, special or infectious wastes, on or
about the Premises or the Building of which they are a part. Hazardous substances shall
include those which are defined in the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended, 42 USC Section 9601 et seq.; the
Resource Conservation and Recovery Act, as amended, 42 USC Section 5901 et seq.; the
Toxic Substances Control Act, as amended, 15 USC Section 2801 et seq.; the medical waste
regulations which have been promulgated by the state in which the Premises are located; and
as further set forth in any stale or local laws and ordinances, and their corresponding
regulations. Tenant may use or otherwise handle on the Premises only those hazardous
substances typically used or handled in connection with the permitted use in Paragraph 3 of
this Lease. Tenant shall comply with all applicable environmental laws and exercise the
highest degree of care in the use, handling and storage of any hazardous substances, and shall
take all practicable measures to minimize the quantity and toxicity of hazardous substances
used, handled or stored on the Premises. Tenant shall indemnify and hold Landlord harmless
from and against any and all claims, damages or liabilities (whether or not caused by
negligence), including civil or criminal fines arising out of or relating to any of the following:
(a) any generation, processing, handling, transportation, storage, treatment or disposal of solid
waste or hazardous substances by Tenant, including, but not limited to, any of such activities
occurring on the Premises; and (b) any releases by Tenant of hazardous substances (including,
but not limited to, any releases as defined under the Comprehensive Environmental Response.
Compensation and Liability Act of 1980) to the extent occurring or existing on or after the
Commencement Date, including, but not limited to, such releases onto land, ground water,
surface water, or into the air.
5. Hold Harmless.
With the exception of an loss or damage caused by an act or omission of Landlord, its agents, employees or
invitees, the Tenant covenants and agrees to keep and to hold the Landlord harmless from any liability for loss
or damages to persons, properly, or things, both real or asserted, accruing from any cause connected with
Tenant's use of the Premises during the term of this Lease.
6. Sublease and Assignment.
Tenant shall not assign this lease in whole or in part, or sublease all or any part of the Leased Premises without
Landlord's written consent, which shall not be unreasonably withheld or delayed and in no event shall any
such assignment or sublease ever release Tenant or any guarantor from any obligation or liability hereunder
without approval of the Landlord in written.
7. Repairs.
During the Lease term, Tenant shall make, a Tenant's expense, all necessary interior repairs
to the Leased Premises. Repairs shall include such items as routine repairs of floors, walls,
ceilings, and other parts of the Leased Premises damaged or worn through normal occupancy.
Landlord shall make, at Landlord's expense all exterior repairs including, but not limited to,
the roof, parking lot, exterior walls and electrical lines. Landlord shall make, at Landlord's
expense, all repairs due to roof leaks. Tennt shall be responsible, at Tenant's expense, for
normal maintenance to the heating and air conditioning system. Landlord shall be responsible,
at Landlord's expense, for all repairs and replacement of components to the heating and air
conditioning system.
8.Alterations and Improvements.
The Tenant shall not make or allow to be made any structural alterations or physical additions in or to the
Premises (including, but not limited to, roof and wall penetration) without first obtaining the written consent
of Landlord, which consent will not be unreasonably withheld. Any alterations, physical additions or
improvements to the Premises made by Tenant shall at once become the property of Landlord and shall be
surrendered to Landlord upon the termination of this Lease; provided, however, Landlord, at its option, may
require Tenant to remove any physical additions and /or repair any alterations in order to restore the Premises
to the condition existing t the time Tenant took possession, all costs or removal and /or alterations to be borne
by Tenant. Any alterations, physical additions or improvements shall be made in a workmanlike manner and
utilizing good quality materials. Tenant shall have the right to place and install personal property, trade
fixtures, equipment and other temporary installations in and upon the Leased Premises upon first obtaining
written consent of Landlord, which consent will not be unreasonably withheld; and fasten the same to the
premises. All personal property, equipment, machinery, trade fixtures and temporary installations, whether
acquired by tenant at the commencement of the Lease term or placed or installed on the Leased Premises by
Tenant thereafter. shall remain Tenant's property free and clear of any claim by Landlord. Tenant shall have
the right to remove the same at any time during the teen of this Lease provided that all damage to the Leased
Premises caused by such removal shall be repaired by Tenant at Tenant's expense.
9. Property Taxes.
Landlord shall pay, prior to delinquency, all general real estate taxes and installments of special assessments
corning due during the Lease term on the Leased Premises. and all personal property taxes Nvith respect to
Landlord's personal property, if any, on the Leased Premises. Tenant shall be responsible for paying all
personal property taxes with respect to Tenant's personal property at the Leased Premises.
10. Insurance.
A. Landlord shall maintain fire and extended coverage insurance on the Building and the Leased Premises in
such amounts as Landlord shall deem appropriate. Tenant shall be responsible, at its expense for fire and
extended coverage insurance on all of its personal property, including removable trade fixtures located in the
Leased Premises.
B. Tenant shall, maintain a policy or policies of comprehensive general liability insurance with respect to the
respective activities of each in the Building with the premiums thereon fully paid on or before due date,
issued by and binding upon some insurance company approved by Landlord, such insurance to afford
minimum protection of not less than $1,000,000 combined single limit coverage of bodily injury, property
damage or combination thereof. Landlord shall be listed an additional insured on Tenant's policy or policies
of comprehensive general liability insurance, and Tenant shall provide Landlord with current certificates of
Insurance evidencing Tenant's compliance with this Paragraph. Tenant shall obtain the agreement of Tenant's
insurers to notify Landlord that a policy is due to expire at least (10) days prior to such expiration.
Landlord shall not be required to maintain insurance against thefts within the Leased
Premises or the Building.
11. Utilities.
Tenant shall pay all charges for water, sewer, gas, electricity and telephone and other services
and utilities used by Tenant on the Leased Premises during the term of this Lease unless otherwise expressly
agreed in writing by Landlord.
12. Signs.
Tenant will be allowed to keep in place on the Leased Premises signage which is pennitted by applicable
zoning ordinances and private restrictions. Tenant shall repair all damage to the Leased Premises resulting
from the removal of signs installed by Tenant.
13. Entry.
Landlord shall have the right to enter upon the Leased Premises at reasonable hours to inspect the sank,
provided Landlord shall not thereby unreasonably interfere with Tenant's business on the Leased Premises.
14. Parking.
During the terns of this Lease, Tenant shall enjoy the use of available parking areas.
15. Damage and Destruction.
If the Leased Premises or any part thereof or any appurtenance thereto is so damaged by fire, casualty or
structural defects that the same cannot be used for Tenant's purposes, then Tenant shall have the right within
ninety (90) days following damage to elect by notice to Landlord to terminate this Lease as of the date of
such damage. In the event of minor damage to any part of the Leased Premises, and if such damage not
render the Leased Premises unusable for Tenant's purposes, Landlord shall promptly repair such damage at
the cost of the Landlord. Tenant shall be relieved from paying rent and other charges during any portion of
the Lease term that the Leased Premises are inoperable or unfit for occupancy, or use, in whole or in part, for
Tenant's purposes. Rentals and other charges paid in advance for any such periods shall be credited on the
next ensuing payments, if any, but if no further payments are to be made, any such advance payments shall
be refunded to Tenant. The provisions of this paragraph extend not only to the matters aforesaid, but also to
any occurrence which is beyond 'tenant's reasonable control and which renders the Leased Premises, or any
appurtenance thereto, inoperable or unfit for occupancy or use, in whole or in part, for Tenant's purposes.
16. Default.
A. Default by Tenant. The following shall be deemed to be event of default by Tenant under this Lease: (a)
Tenant shall fail to pay, when due, any installment of rent and such failure shall continue for ten (10) days
after written notice to the Tenant; (b) Tenant shall fail to pay when due, any installment of Taxes, Casualty
Insurance, Liability Insurance, Tenant Repairs or any other payment required pursuant to this Lease and such
failure shall continue for ten (10) days after written notice to Tenant (c) Tenant shall abandon the Premises; (d)
Tenant shall fail to comply with any term, provision or covenant of this Lease and the failure is not cured
within forty -five (45) days after written notice to Tenant; (e) Tenant shall file a petition or be adjudged
bankrupt or insolvent under any applicable federal or state bankruptcy or insolvency law or admit that it cannot
meet its financial obligations as they come due; or a receiver or trustee shall be appointed or all or substantially
all of the assets of Tenant; or Tenant shall make a transfer in fraud of creditors or shall make an assignment for
the benefit of creditors; or Tenant shall allow any lien to be filed against the Premises or the Building to
remain undischarged for more than thirty (30) days.
13. Remedies for Tenant's Default. Upon the occurrence of any event of default set forth in this Lease,
Landlord shall have the option to pursue anyone or more of the remedies set forth herein. (a) Landlord may
enter upon and take possession of the Premises, by picking or changing locks if necessary, and lock out, expel
or remove Tenant and any other person who may be occupying all or any part of the premises without being
liable for any claim for damages, and relet the Premises on behalf of Tenant and receive the rent directly by
reason of the relctting. Tenant agrees to pay Landlord, on demand, any deficiency that may arise by reason of
any relating of the Premises; further, Tenant agrees to reimburse Landlord for any expenditures made by it in
order to relet the Premises, including, but not limited to, remodeling and repair costs, (b) Landlord may
discharge Tenant's obligation under this Lease. Tenant agrees to reimburse Landlord, on demand, for any
expense which Landlord may incur in effecting compliance with Tenants obligations under this Lease; further,
Tenant agrees that Landlord shall not be liable for any damages resulting to Tenant from effecting compliance
with Tenant's obligation under this Lease caused by the negligence of Landlord, but Landlord shall not be
released from liability for damages arising from Landlord's gross negligence or willful misconduct. (c)
Landlord may terminate this Lease, in which event Tenant shall immediately surrender the Premises to
Landlord, and if Tenant fails to surrender the Premises, Landlord may, without prejudice to any other remedy
which it may have for possession or arrearage in rent, enter upon and take possession of the Premises, by
picking or changing locks if necessary, and lock out, expel or remove Tenant and any other person who may
be occupying all or any part of the Premises without being liable for any claim for damages. Tenant agrees to
pay on demand the amount of all loss and damage which Landlord may suffer by reason of the termination of
this Lease under this section, whether through inability to relet the Premises on reasonable terms or otherwise.
Notwithstanding anything contained in this Lease to the contrary, this Lease may be terminated by Landlord
only by mailing or delivering written notice of such termination to Tenant, and no other act omission of
Landlord shall be construed as a termination of this Lease. In, addition to any remedy set forth herein,
Landlord shall have the right to recover damages from Tenant for all unpaid rent, taxes, casualty insurance,
property insurance, Tenant Repairs and other charges due through the end of the Lease Term. It is further
agreed that in the event the Landlord terminates this Lease for any reason set forth above, the said termination
shall not relieve the Tenant of any liability to the Landlord for failure to fulfill, perform or observe the
obligations, agreements and covenants imposed on the said Tenant by this contract, and that the said Landlord
shall at any time after the termination of this Lease have the right of action against the said Tenant, its heirs,
successors, or permitted assigns for any breach of this contract.
C. Attorney's Fees and Costs. In the event Tenant defaults in the performance of any of the terms, covenants,
agreements or conditions contained in this Lease and Landlord places in the hands of any attorney the
enforcement of all or any part of this Lease, the collection of any rent due or become due, or recovery of the
possession of the premises, Tenant agrees to pay Landlord's costs of collection. including reasonable
attorney's fees for the services of the attorney whether suit is actually filed or not, provided recovery of
attorney's fees and expenses incurred in litigation with Tenant is contingent upon Landlord prevailing against
Tenant.
17. Quiet Possession.
Landlord covenants and warrants that upon performance by Tenant of its obligations hereunder, Landlord
will keep and maintain Tenant in exclusive, quiet, peaceable and undisturbed and uninterrupted possession all
the Leased Premises during the term of this Lease.
18. Notice.
Any notice required or permitted under this Lease shall be deemed sufficiently given or served if sent by
United States certified mail, return receipt requested, addressed as follows:
If to Landlord to:
Mayor Bob Freeman
1003 Broadway
Van Buren, AR 72956
If to Tenant to:
AAA Mower Mart LLC
603 Robinson
Van Buren, AR 72956
Landlord and Tenant shall each have the right from time to time to change the place notice
is to be given under this paragraph by written notice thereof to the other party.
19. Headings.
The headings used in this Lease are for convenience of the parties only and shall not be considered
in interpreting the meaning of any provision of this Lease.
20. Successors.
The provisions of this Lease shall extend to and be binding upon Landlord and Tenant and their respective
legal representatives, successors and assigns.
23. Consent.
Landlord shall not unreasonably withhold or delay its consent with respect to any matter for which
Landlord's consent is required or desirable under this Lease.
24. Compliance with Law.
Tenant shall comply with all laws, orders, or ordinances and other public requirements now or hereafter
pertaining to Tenant's use of the Leased Premises. Landlord shall comply with all laws, orders,
ordinances and other public requirements now or hereafter affecting the Leased Premises.
25. Final Agreement.
This Agreement terminates and supersedes all prior understandings or agreements on the subject matter hereof.
This Agreement may be modified only by a further writing that is duly executed by both parties.
IN WITNESS WHEREOF, the parties have executed this Lease as the day and year first above written.
City of Van Buren AAA Mower Mart LLC
13y: By:
Bob Freeman, Mayor Vernon O. Smith, Owner