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RES NO 05-10-2004 CITY OF VAN BUREN, ARKANSAS RESOLUTION NO. 5-1 0 -2004 A RESOLUTION APPROVING A LEASE OF GOOSE HARBOR MARINA TO FELK ENTERPRISES, INC. WHEREAS, The previous lessee of Goose Harbor Marina, David M. Craven, transferred his interest in the lease of Goose Harbor Marina executed April 21, 1997 and approved that same date by this Council to Marvin Properties, LLC; and WHEREAS, That Marvin Properties, LLC, transferred their interest in the lease to Felk Enterprises, Inc.; and WHEREAS, That Felk Enterprises, Inc. desires to enter into an updated lease agreement with the City; 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 Felk Enterprises, Inc. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VAN BUREN, ARKANSAS: SECTION l: That the assignments of the Lease from David M. Craven to Marvin Properties, LLC, and from Marvin Properties, LLC to Felk Enterprises, Inc., are hereby approved and ratified. SECTION 2: That the attached Lease Agreement for the City's property upon which Goose Harbor Marina is located, executed by the Mayor and Felk Enterprises, Inc. on May 1, 2004, is hereby approved and ratified. PASSED AND APPROVED THIS l I D AY OF MAY, 2004. MAYOR J IF RIGGS ATTESTED: Cw CITY CLERK/TREASURER 0 LEASE AGREEMENT PS" This Lease Agreement entered into this l� day of 2004, between the City of Van Buren, Arkansas (hereinafter referred to a "Lessor and FELK ENTERPRISES, INC. (hereinafter referred to as "Lessee I in consideration of the obligation of the Lessee to pay rent and of the other terms, covenants and conditions hereof, Lessor leases to Lessee, and Lessee takes from Lessor, the leased premises consisting of the following described property lying and being situated in Crawford County, Arkansas, to -wit: Part of the Southwest Quarter (SW 1/2) of the Northeast Quarter (NE '/a) and part of the East Half (E 1/2) of the Northwest Quarter (NW 1/2), Section Twenty -five, Township Nine (9) North, Range Thirty -two (32) West described as being all that land lying between Water Street in the City of Van Buren, Arkansas, and the Arkansas River Extending from an extended line of the Northwest side of Washington Street southeastward to an extended line of the Southeast side of Broad Street. Said land fronting on the Arkansas River. 2. Lessee agrees to accept the property, improvements and equipment on or in the leased premises in their existing condition. In no event shall the Lessor be liable for any defect in such property or for any limitation on its use. 3. It is understood and agreed that the Lessee shall use the leased premises for the purpose of operating a marina and for any other related activities to serve marina customers and park visitors. Lessee shall not conduct or allow any unlawful activities to occur upon the leased premises. 4. Lessee understands and acknowledges that the Lessor has previously established upon the leased premises a public outdoor recreation area known as Riverfront Park and accepts its existence and continued operation as a public outdoor recreation area. The Lessor hereby reserves full and free access to and across the Riverfront Park and Lessee agrees that the operation of its business upon the leased premises shall not be conducted in a manner which will be incompatible with the usefulness and enjoyment of the Riverfront Park as a recreation area for the general public. 5. Lessee agrees that in the operation of its business upon the leased premises, it will comply with all rules and regulations of the Corps of Engineers, Coast Guard, Pollution Control and Ecology Commission as well as the rules, regulations and 0 Ordinances of the City of Van Buren, Arkansas, and Crawford County and laws of the State of Arkansas. 6. Lessee agrees that it shall provide the services and facilities of its business on the premises to the general public in an open and fair manner and shall not discriminate against any person on the basis of race, creed, color, sex, age or disability. 7. The duration of this Lease shall be for a term of five (5) years, b ginnin on the day of 2ssothe JO day of 2 DEG with h the the proves n that the Lessor may, at its option, an in addition to other grounds provided herein, terminate this Lease it in the opinion of the Lessor, Lessee has not made sufficient progress on the proposed marina improvements set out in paragraph herein below and on the attached list. At the expiration of the initial term of five (5) years, the parties may renew and renegotiate the terms of this Lease upon the desire of both parties to do so. Further, during the first year of the term of this Lease, the Lessee shall have the option, upon ninety (90) days written notice given to the Lessor, to terminate this Lease without penalty, however, any improvements made by the Lessee to the leased premises prior to such termination, shall remain a part of the leased premises and shall remain thereupon. The one year limitation on the exercise of this election to terminate shall be applied to the date of notice of election to the Lessor rather than the date of termination. 8. As compensation for the granting of this Lease, the Lessee agrees to pay to the Lessor, and Lessor agrees to accept the amount of $1,200.00 per year. The annual lease payments shall be due on the fifteenth day after the anniversary date of the execution of this Lease and shall be either delivered or mailed to the Van Buren City Clerk. 9. Lessee may charge reasonable rates for services provided and goods sold in connection with the marina operation as well as collect rents from any approved sub- lessees. 10. Lessee agrees that it will suffer no lien to be placed upon the leased premises or improvements thereon, for material or labor. In the event of any such liens, the City shall have the right to pay the same or, at its option, to terminate this Lease immediately. 11. In the event Lessee makes any improvements or alterations on the leased premises, its buildings, boat slips or other structures, the same must first be approved as to material and design by the Lessor. 0 I\ 12. Lessee shall be responsible for the payment of any taxes and assessments on personal property located within or upon the leased property. 13. It shall be the Lessee's obligation to carry insurance on Lessee's merchandise, furnishings and all other items of personal property of Lessee located or within the leased premises. At the time of execution of this Lease, Lessee shall also provide proof to the City of a policy of liability insurance covering said marina in an amount not less than one million dollars. 14. Lessee shall pay or cause to be paid all utilities, including electrical, gas, telephone, water, cable service, and any other utility service used in or rendered or supplied to the leased premises and to indemnify the Lessor and save Lessor harmless against any liability or damages on such account. 15. Lessee agrees to assist the Lessor in providing security for the Riverfront Park Property, with the understanding Lessee will not be held liable for losses which it has not caused. 16. Lessee agrees to maintain the Leased Premises and all improvements thereon in a state of good appearance and working order. 17. If by reason of any default by the Lessee or upon other termination of this Lease Agreement at the election of the Lessor prior to the stated expiration date, or at the election of the Lessee as set out in paragraph #7 above herein, the Lessor may enter into a new lease of the leased premises, or a portion thereof, with the Sub- lessee, for the remainder of the term of the then existing sub lease, and subject to the same terms and conditions as contained in the sub lease. 18. Lessee hereby indemnifies, and shall hold Lessor harmless from and against all liabilities, losses, claims, demands, costs, expenses, liens, and judgments of any nature arising, or alleged to arise, from or in connection with (a) injury to, or death of, any person or loss or damage to property on or about the leased premises or any adjoining property arising from or connected with the use of the leased premises by Lessee, or Sub lessee, during the term of this Lease, or (b) performance of any labor or services or the furnishings of any materials or other property in respect to the leased premises or any part thereof, by or at the request of Lessee. 19. Lessee has represented to the Lessor the intention to make certain repairs and improvements to the existing marina and the Lessor is relying on those representations in the granting of this Lease and Lessor's acceptance of the above stated lease payments. The proposed repairs and improvements are set out on the attached list. Failure of the Lessee, in the opinion of the Lessor, to make sufficient progress toward the completion of said repairs and improvements 0 within the initial three (3) years of this Lease shall be grounds for immediate termination of the Lease. 20. This Lease Agreement can be assigned by the Lessee with the written approval of the Lessor, and the Lessor shall not unreasonably withhold its consent to such assignment. The assignment of this Lease Agreement without the prior approval of the Lessor in writing shall, at the option of the Lessor, immediately void this Lease Agreement, and upon the exercise of said option to cancel, all rights of Lessee and his assignees hereunder shall immediately cease and terminate. 21. Lessee may sub -lease a portion of the lease premises provided the Lessor first approves the sub lessee and the occupation or activity to be conducted thereon. Said approval shall be by written consent provided by the Lessor to the Lessee. Any attempt by the Lessee to sub -let any portion of the leased premises without the prior approval of the Lessor in writing shall, at the option of the Lessor, immediately void this Lease Agreement, and upon the exercise of said option to cancel, all rights of Lessee and his sub lessees hereunder shall immediately cease and terminate. 22. If the leased premises shall be deserted or vacated, or if proceedings are commenced against the Lessee in any court under a bankruptcy act or for the appointment of a trustee or receiver of the Lessee's property either before or after the commencement of the lease term, v if there shall be a default in the payment of rent or any part thereof, or if there shall be default in the performance of any other covenant, agreement, condition, rule, or regulation herein contained or hereafter established, on the part of the Lessee for more than 20 days after written notice of such default given by the Lessor, this Lease (if the Lessor so elects and upon the passage of a Resolution of the City Council) shall thereupon become null and void, and the Lessor shall have the right to reenter or repossess the leased premises, either by force, summary proceedings, surrender, or otherwise, and dispossess and remove therefrom the Lessee, or other occupants thereof, and their effects, without being liable therefore. In such case, the Lessor may, at its option, relet the leased premises or any part thereof, as the agent of the Lessee, and the Lessee shall pay the Lessor the difference between the rent to be paid for the term remaining at the time of reentry or repossession and the amount, if any, received or to be received under such reletting for such remaining term. Upon termination of this Lease, either due to the default of the Lessee, to the election of the Lessee as set out in paragraph #7 above herein, or to the expiration of the term of the Lease Agreement, all improvements made upon and attached to the leased premises shall remain thereupon and become the property of the Lessor. 0 23. This Lease shall supercede and substitute for any previous leases or permits previously granted by the Lessor to any party. 24. This Lease Agreement shall be binding upon the Lessor and the Lessee and upon any assigns, successors or heirs of the Lessee. IN WITNESS HEREOF, the parties hereto have hereunto set their hands and seals on this G day of 2004 MAYO 'e1 1'y' OF VA BUREN, ARKANSAS, LESSOR ATTESTED: 66d_ (LS BARBIE CURTIS, CITY CLERK TREASURER CC adi„ F LK ENTERPRISES, INC.)LESSEE BY: GOOSE HARBOR MARINA IMPROVEMENTS Clean Marina yard site east and west of bridge. Remove all junk around Marina property. Prepare Marine yard for short-term storage of current licensed boats and boat trailers Discontinue long -term haul -out boat maintenance /repair and have shout haul- out repair only Replace foam under existing slips with covered foam to prevent degradation. Repair boat launch ramp. Repair or replace fuel pumps Repair Marina store. Re- gravel Marina parking lot. Landscape Marina yard. Install Goose Harbor Marina sign to City specification. Remove all wooden docks, and install modern metal, covered slips. Increase number of slips from 15 to 55. Repair existing maintenance building.