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RES NO 11-02-2006 CITY OF VAN BUREN, ARKANSAS RESOLUTION NO. 2 -2006 A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE ANEW LEASE AGREEMENT WITH THE VAN BUREN BOYS' /GIRLS' CLUB. WHEREAS, the Lease on the Boys' and Girls' Club building has expired; and WHEREAS, A new Lease Agreement needs to be executed: NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VAN BUREN, ARKANSAS: THAT.the Mayor is hereby authorized to execute a new Lease Agreement with the Van Buren Boys' /Girls' Club providing for a 99 year Lease with options to renew for 2 successive renewal terms of 99 years each. PASSED AND APPROVED THIS Q DAY OF m9 P,ly� (Z 2006. i oU MAYOR ATTESTED: CITY CLERK TREASURER 0 0 LEASE AGREEMENT THIS LEASE AGREEMENT made and entered into this n q ik day of Je.m kg, 2006, by and between the City of Van Buren, Arkansas, by and through the Mayor and City Clerk of the City of Van Buren, Arkansas, hereinafter referred to as "Lessor and the Van Buren Boys' /Girls' Club, Inc., hereinafter referred to as "Lessee W1TNESSETH: 1. PREMISES. Lessor leases to Lessee and Lessee leases from Lessor the grounds and buildings associated therewith which is commonly referred to as the "Boy's Club" property which includes a gymnasium, offices, parking areas and baseball fields. 2. COMMENCEMENT and TERM. The term of this Lease shall commence on the date of execution of this Agreement. The term of this Lease shall end ninety -nine (99) years after this date. 3. RENEWAL OPTION. Lessee shall have the option to renew this Lease for two successive renewal terms of ninety -nine (99) years each. The yearly rental shall be provided in Section 7. Each exercise by Lessee of any renewal option shall be evidenced and effected by Lessee giving to Lessor, not less than sixty (60) days prior to the expiration of the then current term, written notice of Lessee's election to renew this Lease for the renewal term. 4. "TERM" DEFINED. The terms "term" or "term of this Lease" shall mean the term set forth in Paragraph 2 hereof and any renewal thereof pursuant to Paragraph 3. 5. CONSTRUCTION BY LESSEE. All construction upon the property shall be at Lessee's sole cost and expense. Lessee agrees to diligently commence and proceed with the construction of 0 the facility and the furnishing, placing, erection and installation of the equipment, fixtures, 0 furnishings, design, decorations, installations and personal property therefor, and complete the same in accordance with the design submitted to the Lessor. Lessor may inspect the work at reasonable times during the construction period. 6. CONSTRUCTION STANDARDS. All work provided for shall be done in a good and workmanlike manner and in compliance with all applicable laws, ordinances, regulations, orders and requirements of governmental authority and the reasonable requirements of insurers of the facility. In addition thereto, the Lessee shall construct same providing solely for off street parking at the property and no above ground utilities over the property. 7. RENT. Lessee shall pay to Lessor at the office of the Mayor of the City of Van Buren, Arkansas, on or before the 1" day of May each year the sum of $1.00. 8. USE. Lessee shall use and occupy the demised premises for the purposes directly attributable to Van Buren Boys' /Girls' Club functions which are for the well- being, discipline and encouragement of young boys and girls. 9. MAINTENANCE. Lessee shall commit no waste and shall take good care of the demised premises and make all repairs necessitated by Lessee's, or its patrons, misuse of the demised premises. 10. FIXTURES. All improvements made by Lessee to the demised premises which cannot be removed without material injury to the demised premises shall become the property of Lcssor upon installation. Not later than the last day of the tern Lessee may remove all Lessee's personal property. The demised premises shall be surrendered to Lessor at the end of the term in as good condition as they were at the beginning of the term, reasonable wear, and damage by fire, the Page -2- 0 elements. casualty, or other cause not due to the misuse or neglect by Lessee or Lessee's agents, servants, customers, visitors, or licensees excepted. 11. ALTERATIONS. Lessee shall have the right, at Lessee's expense, from time to time, without Lessor's consent, to make such non structural alteration changes, installations, additions or improvements in, on, to, or about such parts thereof as it shall deem expedient or necessary for its purposes. Lessor may make structural changes in, on, to, or about the demised premises, reasonably necessary for such purposes provided it has first obtained the written consent thereto of Lessor, Lessor agreeing that it shall not withhold or delay such consent unreasonably. No such changes shall injure the safety of the property or its structures or diminish its value, and all work shall be done in a good and workmanlike manner, and in accordance with all applicable laws. Lessee shall be required to make any necessary changes or alterations to the property required by Lessor should Lessor deem such changes or alterations necessary for the preservation of the general welfare or safety of its inhabitants. 12. CONCESSIONS. Lessee shall have the right to provide or supply concessions upon the property to be sold to Lessee's customers or visitors. Concessions shall be limited to those items including the retail sale of food, candy, confectionary, ice cream, beverages, refreshments, all for on- premises consumption and use, and all other items which are now and hereafter may be customarily and generally sold and used in businesses of similar types from time to time. 13. ASSIGNMENT. Lessee shall not have the right to assign or sublease this Lease without the specific written consent of the Lessor. Specific written consent of the Lessor to a first assignment shall not serve as a waiver of specific written consent to any subsequent assignments. Page -3- 1 14. UTILITIES. Lessee shall be responsible for the installation, deposits and payments for all utilities used at the property. All such payments shall be paid as they become due. 15. INDEMNIFY. After the commencement date, Lessee shall indemnify and hold harmless Lessor against and from any and all liabilities, fines, suits, claims, demands and actions and costs and reasonable expenses of any kind or nature or by anyone whomsoever, due to or arising out of (a) any default in observing, violation or nonperformance of any term, covenant or condition of this Lease on the part of Lessee to be observed and performed, and /or (b) any damage to person or property occasioned by Lessee's use and occupancy of the demised premises or to any use or occupancy which Lessee may permit or suffer to be made of the demised premises, and /or (c) any injury to person or persons, including death resulting at any time therefrom, occurring in or about the demised premises. 16. LIABILITY INSURANCE. During the term of this Lease, Lessee, at Lessee's sole cost and expense and for the mutual benefit of Lessor and Lessee, shall carry and maintain comprehensive public liability insurance, including property damage, insuring Lessor and Lessee against liability for injury to persons or property occurring in or about the demised premises or arising out of the ownership, maintenance, use, or occupancy thereof. to the limit of not less than $1,000,000.00 for any one accident or occurrence. Lessee shall also carry premises insurance in an amount not less than $225,000.00 on the building in the joint names of the City of Van Buren, Arkansas, and the Van Buren Boys' /Girls' Club, and shall provide a copy of said policy to the City of Van Buren. 17. DEFAULT, NOTICE, TERMINATION. If Lessee defaults in the payment of rent or Page -4- 0 additional rent or defaults in the performance of any of the terms, covenants or conditions of this Lease, Lessor may give to Lessee written notice of such default, and if Lessee does not cure any rent or additional rent default within fifteen (15) days, or other default within thirty (30) days, after the giving of such notice (or, if such other default is of such nature that it cannot be completely cured within such thirty (30) days and thereafter proceed with reasonable diligence and in good faith to cure such default), then Lessor may terminate this Lease on not less than seven (7) days written notice to Lessee, and on the date specified in said notice the term of this Lease shall terminate, and Lessee shall then quit and surrender the demised premises to Lessor, but Lessee shall remain liable as hereinafter provided. If this Lease shall have been so terminated by Lessor, Lessor may at any time thereafter resume possession of the demised premises by any lawful means and remove Lessee and other occupants and their effects. Lessee shall be responsible for Lessor's reasonable attorney's fees and costs in removing the Lessee from the premises if the termination is rightful. 18. CUMULATIVE REMEDIES. Lessor's remedies hereunder are in addition to any remedy allowed by law. 19. LESSOR'S CURE OF LESSEE'S DEFAULT. If Lessee breaches any term, covenant, or condition of this Lease on Lessee's part to be performed, Lessor may, on reasonable notice to Lessee (except that no notice is necessary in case of emergency), cure such breach at the expense of Lessee and the reasonable amount of all expenses, including legal fees, incurred by Lessor in doing so shall be deemed additional rent payable on demand. 20. NOTICES. Any notice, demand, request or other communication hereunder given or made by either party to the other shall be in writing and shall be deemed to be duly given only if Page -5- 0 mailed by registered or certified mail in a postpaid envelope addressed as follows: (a) if to Lessee, at Lessee's address which is as follows: Post Office Box 443, Van Buren, Arkansas 72957, and (b) if to Lessor, at Lessor's address which is as follows: Mayor's Office, City Complex, Van Buren, Arkansas 72956, or at such other addresses as Lessee or Lessor, respectively, may designate in writing by notice pursuant to this Section. 21. NO WAIVER. The failure of either party to insist on strict performance of any term, covenant, or condition hereof, or to exercise any option herein contained (other than the renewal options provided for in Paragraph 3), shall not be construed as a waiver of such term, covenant, condition or option in any other instance. 22. WRITTEN MODIFICATION. This Lease cannot be changed or terminated orally, but only by an instrument in writing signed by both parties. 23. MECHANIC'S LIEN. Lessee shall, within thirty (30)days after notice from Lessor, discharge any material, labor or mechanic's lien for materials or labor claimed to have been furnished to the demised premises on Lessee's behalf. 24. ACCESS TO PREMISES. Lessor may enter the demised premises at any reasonable time on reasonable notice to Lessee for the purpose of inspection or to show said premises to prospective purchasers. 25. NO REPRESENTATIONS. Neither party has made any representations or promises, except as contained in this Lease. 26. BINDING EFFECT. The provisions of this Lease shall apply to, bind and inure to the Page -6- benefit of Lessor and Lessee and their respective successors, legal representatives and assigns. 27. Lessor agrees not to discriminate against any individual because of race, creed, color or other standard as provided for by the Civil Rights Acts presently enacted or to be enacted. IN WITNESS WHEREOF this 0 day of f[0I/2/19 beg_ 2006. VAN SURF •0 S' /GIRLS' CLUB, Lessee B; f 11 <6 :Sr P SIDENT ATTE! S 'N /r CITY OF VAN /B�UUREN, ARKANSAS, Lessor By. �y J4 MAYOR ATTEST: /Y 'T CITY CLERK Page -7-