Ordinance No. 13,710ORDINANCE NO. 13,710
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS,
AUTHORIZING THE CITY MANAGER TO EXECUTE AND THE CITY CLERK TO
ATTEST TO A CONSENT TO SUBLEASE WITH BAYLAND ISLAND
DEVELOPMENT, LLC, AND BAY ENTERTAINMENT, INC., FOR THE PROPERTY
LOCATED ON BAYLAND ISLAND AT 2651 S. HIGHWAY 146, BAYTOWN,
HARRIS COUNTY, TEXAS; AND PROVIDING FOR THE EFFECTIVE DATE
THEREOF.
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WHEREAS, on February 12, 2004, the City of Baytown (the "City") entered into a lease
agreement with Bayland Island Development, LLC ("BID") for the property located on Bayland Island on
which the former restaurant facility was located; and
WHEREAS, BID desires to sublease such property to Bay Entertainment, Inc., ("BEP') for the
purpose of the operation of a restaurant and sports bar, which will sell food, alcoholic beverages and
related items; and
WHEREAS, as part of the lease agreement between the City and BID, the City must consent to
any assignment of the lease agreement; however, such consent cannot be unreasonably withheld; and
WHEREAS, the City Council fmds that such consent shall be granted; provided that both BID
and BEI comply fully with the terms and conditions in the 2004 lease agreement and that BID is not
relieved from any of its obligations to the City under the existing lease; NOW THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS:
Section 1: That the City Council of the City of Baytown, Texas, hereby authorizes and
directs the City Manager to execute and the City Clerk to attest to a Consent to Sublease with Bayland
Island Development, LLC, and Bay Entertainment, Inc., for the property located on Bayland Island at
2651 S. Highway 146, Baytown, Harris County, Texas. A copy of said consent is attached hereto,
marked Exhibit "A," and made a part hereof for all intents and purposes.
Section 2: This ordinance shall take effect immediately fr and after its passage by the
City Council of the City of Baytown.
INTRODUCED, READ and PASSED by the affirmative vo f the City Council of the City of
Baytown this the 8h day of March, 2018.
ST N . DONCARLOS, Mayor
ATTEST:
LETICIA BRYSCH, City NJk
. ra
APPROVED AS TO FORM:
45MACIO RAMIREZ, SR.,,q Attorney
llcobfsOl legal\Karen�,Files\City Councitordinances\2018Warch 8lConsent2SubleaseBaylandlslandDevelopment2BayEntertainment.doc
Exhibit "A"
CONSENT TO SUBLEASE
WHEREAS, the CITY OF BAYTOWN, TEXAS, (hereinafter called Landlord) and
BAYLAND ISLAND DEVELOPMENT, L.C., a Texas Limited Liability Corporation
(hereinafter called Tenant), on the 12th day of February, 2004, entered into a Lease Agreement,
which was duly amended on March 22, 2007, for the premises located at 2651 South Highway
146, Baytown, Harris County, Texas, (hereinafter referred to as the Main Lease), a copy of
which Lease Agreement and its Amendment is attached hereto and incorporated herein by
reference as Exhibit "A'; and
WHEREAS, Tenant desires to enter into and grant a Sublease of the said premises at
2651 S. Highway 146, in Baytown, Harris County, Texas, to BAY ENTERTAINMENT, INC., a
Texas Corporation (hereinafter called Sub -Tenant) for the purpose of operating a restaurant and
sports bar, which shall include the selling food, alcoholic beverages and related items on said
premises; and
WHEREAS, Landlord is agreeable and desires to consent to said Sublease between
Tenant and Sub -Tenant; NOW THEREFORE
(1) It is hereby agreed that Landlord, CITY OF BAYTOWN, TEXAS, does hereby
consent to the Sublease, a copy of which is attached hereto and incorporated herein by reference
as Exhibit "B," between Tenant, BAYLAND ISLAND DEVELOPMENT, L.C., and BAY
ENTERTAINMENT, INC., for the purpose of operating a restaurant and sports bar, which shall
include selling food, alcoholic beverages and related items at the premises located at 2651 S.
Highway 146, in Baytown, Hams County, Texas;
(2) Sub -Tenant, BAY ENTERTAINMENT, INC., does hereby agree to assume and
perform all of the terms, obligations and conditions set forth and described in said Main Lease as
if it were the Lessee therein, including, but not limited to the insurance and indemnifications
provisions;
(3) Provided however, the consent of Landlord to the said Sublease shall not in any
manner whatsoever relieve the Tenant, BAYLAND ISLAND DEVELOPMENT, L.C, from any
of the terms, conditions, covenants and obligations set forth in said Main Lease described in
Exhibit "A" herein.
APPROVED AND AGREED to this _ day of _ . 2018.
CITY OF BAYTOWN
M
Richard L. Davis, City Manager
BAYLAND ISLAND DEVELOPMENT, L.C.
By:
J cox, Vice President/Manager
Tenant
BAY ENTE/RTAINMEN INC.
By: � -V-
Robert
Robert O'Neal, President
Sub -Tenant
\\COBFS01\Lcgd\Karen\Filcs\Contracts\Bnyland bland\2018CONSENT TO SUBLEASE.doc
Exhibit "A"
•J.-.
Sublease
Basic Information
Date:,2017
Sublessor: Bayland Island Development, L.C.
Sublessor's Address: 623 West Texas Avenue, Baytown, Texas 77520
Sublessee: Bay Entertainment,Inc.
Sublessee's Address:700 Rollingbrook Dr., Ste. C,Baytown,Texas 77521
Subleased Premises:The real property and improvements thereon located at 2651 S.Highway
146,Baytown,Harris County, Texas 77520, and more particularly shown on the attached
Exhibit A.
Sublease Commencement Date: On the later of (a) May 1, 2018 or (b) 120 days following
formal approval of Sublease by the City of Baytown, Texas.
SubleaseTermand TerminationDate: March 17, 2019, unless extended pursuant to 4.02
of the Base Lease and the terms of this Sublease.
Option Terms:Sublessee is granted the right to extend the Sublease Term of this Sublease for the
option periods described in Article 4.02 ofthe Base Lease,forthe option terms and according to
the termsand conditions set forth therein,provided (1)Sublessee provides Sublessor notice,in
writing,of its election to exercise its option to extend this Sublease nolaterthan 1yearpriorto
the expiration of the Sublease Term orthethen current Option Term,and(2)Sublessee is not in
default of any of its obligations under this Sublease or the Base Lease.
Sublease Rent:TEN THOUSAND AND NO/100 DOLLARS ($10,000.00)per month,
payable on or before the 1st day of each month,commencing on the Commencement Date,and
continuing thereafter throughout the term of this Sublease. The Sublease Rent shall be increased
annually,on the anniversary of the lsl day of the month immediately following the
Commencement Date, by the percentage of any increase in the Consumer Price Index for all
Urban Consumers.
TaxesandInsuranceas Additional Rent: As additional rental, Sublessee shall be liable for
the payment of all property taxes and property damage or casualty insurance premiums onthe
Subleased Premises.Sublessee shall be invoiced annually for payment of taxes,and shall be
invoiced for property damage and casualty insurance premiums when and as Sublessor is
invoiced for the same.All such Additional Rent payments shall be due and owing 30 days
following thedate Sublessee is invoiced for such Additional Rent payments.
Bayland Island Development,L.C./Bay Entertainment,Inc.Sublease Page 1
Exhibit "B"