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Ordinance No. 6,671930610 -2 ORDINANCE NO. 6671 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN AUTHORIZING RENEWAL OF THE LEASE AGREEMENT ON BEHALF OF THE CITY OF BAYTOWN FOR OFFICE /WAREHOUSE SPACE FOR THE TIME PERIOD OF JUNE 1, 1993 THROUGH MAY 31, 1994; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. 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 approves the renewal of the lease agreement for office /warehouse space for the time period of June 1, 1993 through May 31, 1994. A copy of said agreement is attached hereto, marked Exhibit "A," and made a part hereof for all intents and purposes. Section 2: This ordinance shall take effect immediately from and after its passage by the City Council of the City of Baytown. INTRODUCED, READ and PASSED by the affirmative vote of the City Council of the City of Baytown, this the 10th day of June, 1993. PETE C. ALFARO, Mayor ATTEST: 1 � EILE.EN P. HALL, City Clerk ACIO RAMIR% SR., City Attorney legaucouncill6-1 Q93reuewLEASEheoentf TEXAS .ASSOCIATION OF REALTORS® COMMERCIAL LEASE This) se ag intent 4pagan entered,nto b and bet Be nadene Foster (Landlord) and 11 y y own Trustee ova i Tenant hereby leases ro Lan Or that certain pro perty with the improvemen rtryo Landlord or nefa h ne aby ro i[ttatei Tenant and square feet, hereinafter tailed the "leased premises ", known as I2BOS Market St . g pp y ��� (Address), Lot --B:, Block 2 Woodland Acres Addition, City of 1iDS1&ian Harris County, Texas; or as more particularly described below or on attached exhibit: The primary term of this lease shall be 7� Months commcncing on the 26th October I9 92 and ending on the 3 Z st day of May 93 day of _ and covenants: , 19 , upon the following terms, conditions, TAXES. Each year during the term of this lease, Landlord shall pay rest estate taxes assessed against the leased MMi.WR r�rvahvdv.%,.v� -al estate taxes assessed against the leased premises in the base vear FStnh..vruwv- 3TA*M:!fX"ii- Xiiik.3.; ..... . Z. UTILITIES, Tenant shall pay all charges for utility services to the leased premises except for an an r* all 11 which shall be paid by the Landlord. 3. HOLDING OVER. Failure of Tenant to surrender the leased premises at the expiration of the lease constitutes a holding over which shall be construed as a tenancy from month to month at a rental of $ 4306 Misty Timbers Waq, Kingwood,Tx. 77345 per month, L RENT, Tenant agrees to and shall pay Landford at at such other place Landlord shall designate from time to time in wri ting, as rent forthe leased aremi s, the total sum of S 10,071 a able without demand in equal month) 1 480.00 payable q y payments of S —t-- � each in advance on or before the —1 St day of each month, commencing on Oct- 2 6199 2 and continuing thereafter until the lotsl sum shall be paid. Adjustment to the if any, for rent escalators, for percentage of net rent, or for increases in building operation costs (including but not limited to insurance, custodial services, maintenance and utilities) shall be as set forth in an attached addendum. Rent received after the first day of the month shall be deemed de went. If rent is not received by Landlord t�viie Tenth of each month, Tenant shall pay a late charge ofS 50 ' � a penalty of S ' per day until rent is received in full. Tenant shall ay S Pius returned check. The First month rent to be pro —rated ( 270.97 f —for each USE. Tenant shall use the leased premises for the following purpose and no other: Storaae and rea SECURITY DEPOSIT. Tenant shall pay to Landlord a security deposit in the sum of s�400 :00 before the commencement of this lease for Tenant's faithful performance hereunder. Refund payable on or f l be made upon shalshal performance of this lease agreement by Tenant, minus any assessments or damages unless La thereof and Tenant provide otherwise in Special Provisions. 7. INSURANCE, Lsindlord shall pay for fire and extended coverage insurance on the buildings and other improve. ments on the leased premises in an amount not less than s As Valued which amount shall be increased ay in proportion to the increase in market value of the premises. [f Landlord provides any insurance herein, Tenant shall p shall pay to Landlord, during the term hereof, the amount of any increase in premiums for the insurance required over and above Such premiums paid during the first year of this lease. Tenant shall provide public liability and property damage insurance for its business operations on the leased premises in the amount of S well as the Tenant. Said insurance policies required to be provided by Tenant herein shall it nalme Landlord as an Landlord urred and shall be issued by an insurance company approved by Landlord. Tenant shall provide Landlord with certificates ofinsurance evidencing the coverage required herein. Tenant shall be solely responsible for fire and casualty insurance on Tenant's Property on or about the leased premises. If Tenant does not maintain such insurance in full force and effect, Landlord may notify Tenant of such failure and if Tenant does not deliver to Landlord within Z 0 showing all such insurance to be in full force and effect, Landlord may at his option, take youtlthe'necessatry insurance to certification comply with the provision hereof and pay the premiums on the items specified in such notice, and Tenant covenants thereupon on demand to reimburse and pay Landlord any amount so paid or expended in the payment of the insurance premiums required hereby and specified in the notice, with interest thereon at the rate of j/A from the date of such payment by Landlord until repaid by Tenant. percent per annum S. CONDITION OF PREMISES, Tenant has examined and accepts the leased premises in its present as is condition as suitable for the purposes for which the same are leased, and does hereby accept the leased premises regardless of reasonable deterioration between the date of this lease and the date Tenant begins occupying the leased premise unless Landlord and Tenant agree to repairs or refurbishment as noted in Special Provisions. 9. MAINTENANCE AND REPAIRS. Landlord shall keep the foundation, the exterior walls (except glass; windows; doors; door closure devices; window and door frames, molding, locks, and hardware; and interior painting or other treatment of exterior walls), and the roof of the leased .premises in good repair except that Landlord shall not be required to make any repairs occasioned by the act or negligence of Tenant, its employees, subtenants, licensees and concessionaires. Tenant is responsible for maintenance of the common area and common area equipment. if Landlord is responsible for any such repair and maintenance, Tenant agrees to give Landlord written notice of needed repairs. Landlord shall make such repairs within a reasonable time. Tenant shall notify Landlord immediately of any emergency repairs. Tenant shall keep the leased premises in good, clean condition and shall at its sole cost and expense, EXHIB■ make all needed repairs and replacements, including replacement of cracked or broken glass, except for repairs and , IT H replacements required to be made by Landlord under this section. If any repairs required to be made by Tenant hereunder are not made within ten (Itl) days after written notice delivered to Tenant by Landlord, Landlord may at its option m#p rr.sx -0061 1 1NC r such repairs without liability to Tenant for any loss or damage which may result by reason of such repairs, and Tenant shall Pay to Landlord upon demand as additional rent hereunder the cost of such repairs plus interest. At the termination of this lease, Tenant shall deliver the leased premises in good order and condition, reasonable wear and tear excepted, 10. ALTERATIONS. All alterations, additions and improvements, except trade fixtures, installed at expense of Tenant, shall become the property of Landlord and shall remain upon and be surrendered with he leased premises as a part thereof on the termination of this lease. Such alterations, additions, and improvements may only be made with the prior written consent of Landlord, which consent shall not be unreasonably withheld. If consent is granted for the making of improvements or alterations to the leased premise, such improvements and n an amount satisfactory to Landlord protecting Landlord from alterations shall not commence until Tenant has furnished to Landlord a certificate of insurance showing coverage i liability for injury to any person and damage to any personal property, on or off the leased premises, in connection with the making of such improvements or alterations. No cooling tower, equipment, or structure of any kind shall be placed on the roof or elsewhere on the leased premises by Tenant without prior written permission of Landlord. If such permission is granted, such work or installation shall be done at Tenant's expense and in such a manner that the roof shall not be damaged thereby. If it becomes necessary to remove such cooling tower, equipment or structure temporarily, so that repairs to the roof can be made, Tenant shall promptly remove and reinstall the cooling tower, equipment or structure at Tenant's expense and repair at Tenant's expense any damage resulting from such removal or reinstallation. Upon termination of this lease, Tenant shall remove or cause to be removed from the roof any such cooling tower, equipment or structure if directed to do so by Landlord. Tenant shall promptly repair at its expense any damages resulting from such removal. At the termination of this lease, Tenant shall deliver the leased premises in good order and condition, natural deterioration only excepted. Any damage caused by the installation or removal of trade fixtures shall be repaired at Tenant's expense prior to the expiration of the ]ease term. All alterations, improvements, additions, and repairs made by Tenant shall be made in good and workmanlike manner. It. COMPLIANCE WITH LAWS AND REGULATIONS. Tenant shall, at its own expense, comply with ail laws, orders, and requirements of all governmental entities with reference to the use and occupancy of the ]cased premises, Tenant and Tenant's agents, employees and invitees shall fully comply with any rules and regulations governing the use of the buildings or other improvements to the leased premises as required by Landlord. Landlord may make reasonable changes in such rules and regulations from time to time as deemed advisable for the safely, care and cleanliness of the leased premises, provided same are in writing and are not in conflict with this lease. 12. ASSIGNMENT AND SUBLETTING. Tenant shall not assign this lease nor sublet the leased premises or any interest therein without first obtaining he written consent of landlord. An assignment or subletting without the written consent of Landlord shall be void and shall, at the option of Landlord, terminate this lease, 13. DESTRUCTION. In the event the leased premises is partially damaged or destroyed or rendered partially unfit for occupancy by fire or other casualty, Tenant shall give immediate notice to Landlord. Landlord may repair the damage and restore the leased premises to substantially the same condition as immediately prior to the occurrence of the casualty. Such repairs shall be made at Landlord's expense unless due to Tenant's negligence. Landlord shall allow Tenant a fair reduction of rent during the time the leased premises are partially unfit for occupancy. If the leased premises are totally destroyed or deemed by the Landlord to be rendered unfit for occupancy by fire or other casualty, or if Landlord shall decide not to repair or rebuild, this lease shall terminate and the rent shall be paid to the time of such casualty, 14. TENANT DEFAULT. If Tenant abandons the premises or otherwise defaults in the performance of any obligations or covenants herein, Landlord may enforce the performance of this lease in any manner provided by law. This lease may be terminated at Landlord's discretion if such abandonment or default continues for period of 10 days after Landlord notifies Tenant of such abandonment or default and of Landlord's intention to declare this lease terminated. Such notice shall be sent by Landlord to Tenant at the leased premises by certified mail or otherwise. If Tenant has not completely removed or cured default within he 14 day period, his lease shall terminate. Thereafter, Landlord or its agents shall have he right, without further notice or demand, to enter the leased premises and remove all persons and property without being deemed guilty of trespass and without waiving any other remedies for arrears of rent or breach of covenant. Upon abandonment or default by the Tenant, the remaining unpaid portion of the rental from paragraph 4 herein, shall become due and payable, 15. LIEN, Landlord is granted an express contractual lien, in addition to any lien provided by law, and a security interest in all Property of Tenant found on the leased premises to secure the compliance by Tenant with all terms of this lease. In the event of default, Landlord or its agents may peaceably enter the leased premises and remove all property and dispose of same as Landlord shall see fit. 16. SUBORDINATION. Landlord is hereby irrevocably vested with full power and authority to subordinate this lease to any mortgage, deed of Trust, or other lien hereafter placed on the demised premised and Tenant agrees on demand to execute such further instruments subordinating this lease as Landlord may request, provided such subordination shall be on the express condition that this lease shall be recognized by the mortgagee, and the rights of Tehant shall remain in full force and effect during the term of this lease so long as Tenant shall continue to perform all of the covenants and conditions of this lease. 17, INDEMNITY, Landlord and its employees and agents shall not be liable to Tenant or to Tenant's employees, patrons, visitors, invilees, or any other persons for any injury to any such persons or for any damage to personal property caused by an act, omission, or negledt of Tenant or Tenant's agents or of any other tenant of the premises of which the leased premises is a part. Tenant agrees to indemnify and hold Landlord and its employees and agents harmless from any and all claims for such injury and damages, whether the injury occurs on or off the leased premises. 18. SIGNS. Tenant shall not post or paint any signs al, on, or about the leased premises or pain( the exterior walls of the building except with the prior written consent of the Landlord. Landlord shall have the right to remove any sign or signs in order to maintain the leased premises or to make any repairs or alterations thereto. 14. TENANT BANKRUPTCY. If Tenant becomes bankrupt or makes voluntary assignment for the benefit of creditors or if a receiver is appointed for Tenant. Landlord may terminate this lease by giving five (5) days written notice to Tenant of Landlord's intention to do so. 20. CONDEMNATION. If the whole or any substantial part of the leased premises is taken for any public or quasi - public use under any governmental law, ordinance or regulation or by right of eminent domain or should the leased premises be sold to a condemning authority under threat of condemnation, this lease shall terminate and the rent shall be abated during the unexpired portion of the lease effective from the date of the physical taking of the leased premises. 21. BROKER'S FEE. Lantz & As Broker and Bob Seale Broker), has negotiated this lease and Landlord agrees to pay Broker in CO-Broker, as Real Estate Broker (the commencement of this lease a negotiated fee of$ or Six Harris County, Texas, upon to be divided as follows: Lantz & Assoc 3 Bob Seale of the total rental provided for in this lease extended, expanded or renewed, Landlord agrees to pay Broker an additional negotiated fee of tje event this least is 4 96 of he total rental for such extension, expansion or renewal pqd or such extension, expansion or renewal, said fee to be divided as Follows: 4� spa ia�lz aanedtir� of��rtt�t�ncement of Tenant warrants that it has had no dealings with any real estate broker or agents in connection with the negotiation of this leaseexceptingonly none broker or agent who is entitled to a commission in connection with this Lease. If Tenant during theoterm of hishLeasc„a�a tt Q� (TAR-006) 1183 ✓�/ - �J P�[r Z f3 P�ga Ce�xtensiion, expansion or renewal period thereof, or within _3Q� days of the expiration of this Lease, or any extension, Lantrzn & rAasoe rHoboh eal8urchases the property hereih leased Landlord agrees to pay Broker, negotiated fee oft in a rr 1$ County, Texas, a or 96 of the sales rice u property, P port closing of the sale of this 22. NOTICES. Notices to Tenant shall be by certified mail or other delivery to the leased premises. Notices to Landlord shall be by certified mail to the place where rent is payable. 23. DEFAULT BY LANDLORD. In the event of breach by Landlord of any covenant, warranty, term or obligation of this lease, then Landlord's failure to cure same or commence a good faith efrort to cure same within 10 days after written notice thereof by Tenant shall be considered a default and shall entitle Tenant either to terminate this lease or cure the default and make the necessary repairs and any expense incurred by Tenant shall be reimbursed by the Landlord after reasonable notice of the repairs and expenses incurred. If any utility services furnished by Landlord are interrupted and continue to be interrupted despite the good faith efforts of Landlord to remedy same, Landlord shall not be liable in any respect for damages to the person or property of Tenant or Tenant's employees, agents, or guests, and same shall not be construed as grounds For constructive eviction or abatement of rent. Landlord shall use reasonable diligence to repair and remedy such interruption promptly. 24. SIGNS. During the last 30 days of this lease, a "For Sale" sign and /or a "For Lease" sign may be displayed on the leased premises and the leased premises may be-shown at reasonable times to prospective purchasers or tenants. 25. RIGHT OF ENTRY. Landlord shall have the right during normal business hours to enter the demised premises; a) to inspect the general condition and state of repair thereof, b) to make repairs required or permitted under this lease, or c) for any other reasonable purpose. 26. WAIVER OF BREACH. The waiver by Landlord of any breach of any provision of this lease shall not constitute a continuing waiver or a waiver of any subsequent breach of the same or a different provision of this lease. 27. TIME OF ESSENCE. Time is expressly declared to be of the essence in this lease. 28. BINDING OF HEIRS AND ASSIGNS. Subject to the provisions of this $ease pertaining to assignment of the Tenant's interest, all provisions of this lease shall extend to and bind, or inure to the benefit not only of the parties to this lase but to each and every one of the heirs, executors, representatives, successors, and assigns of Landlord or Tenant. 294 RIGHTS AND REMEDIES CUMULATIVE. The rights and remedies by this lease agreement are cumulative and the use of any one right or remedy by either party shall not preclude or waive its right to use any or all other remedies. Said rights and remedies are given in addition to any other rights the parties may have by law, statute, ordinance, or otherwise. 30. TEXAS LAW TO APPLY. This agreement shall be construed under and in accordance with the laws of the State of Texas, 31. LEGAL CONSTRUCTION. In case any one or more of the provisions contained in this agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision hereof and this agreement shall be construed as if such invalid, illegal, or unenforceable provision had never been contained herein. 32. PRIOR AGREEMENTS SUPERCEDED, This agreement constitutes the sole and only agreement of the parties to this lease and supersedes any prior understandings or written or oral agreements between the parties respecting the subject matter of this lease, 33. AMENDMENT. No amendment, modification, or alteration of the terms hereof shall be binding unless it is in writing, dated subsequent to the date hereof and duly executed by the parties. 34. ATTORNEY'S FEES. Any signatory to this lease agreement who is the prevailing party in any legal proceeding against any other signatory brought under or with relation to this lease agreement or this transaction shall be additionally entitled to recover court costs, reasonable attorney fees, and all other out -of- pocket costs of litigation, including deposition, travel and witness costs. From the nonprevailing party. 35. SPECIAL PROVISIONS. (This section to include additional factual data not included above.) See Attached Addendum EXECUTED this 2 *3 t;eday of Ig 2 ,, TENANT o�TE ANTS City aytown Trustee of Harris _("resins;- LC3STI.IT.ra�_(' =i snp $z Na rn, ics Task Force P.O. Box 96755 Houston, Tifkas 77213 ,REAL ESTATE ROKER t53-5800 nne Lantz CEO. By; t • ffi t FW Bernadene Fostoer 430L—Misty Timbers Wav Kingwood, Texas 77345 (713) 360 -1721 REAL ESTATE BROKER By: Robert E. Stale LICENSE NO, 453 -7264 )Nom: This form has been prepared by Babb & Hanna. P.C., attorneys for the Texas Association of REALTORS 1TAR). Babb A Hanna, P.C. has approved Ibis form For use by TAR member brokers end salespersons ror the purpose of leasing improved commercial real property for business purposes, form has been draned for a specific tran sucoan. therefore. the parties are advised to consult an attorney of Their choice before signing,) This rem IT'AR -006) 1185 Page 3 of 3 Pages ADDENDUM 1. Landlord will have inspections of the electrical system and air conditioning systems of the premises. Landlord will be responsible for making any initial repairs needed to make these systems substantially operational, only until the date of possession by Tenant. After the date of possession of the premises by Tenant, despite any provisions of section 9 of this lease to the contrary, Tenant will be responsible for all repairs to the premises except for repairs to the foundation, exterior walls and roof. 2. Upon the execution of this lease agreement, or at any time thereafter during the term of this lease, Tenant may erect a substantial wooden, or chain -link fence along, but within, the western boundary of the premises. The fence must be erected by a reputable fence building company which has been approved by Landlord and according to a design which has been approved by Landlord. The cost for erecting such a fence will be. borne entirely by Tenant. Despite any provisions of section 9 of this lease to the contrary, Tenant will be soley responsible for all repairs and modifications to such fence and for liability under any cause of action related to such fence in any way. 3. Landlord has been advised and understands that Tenant has no funds available, with which to pay its obligations under this lease agreement unless and until it receives general funding from Harris County, the State of Texas or other governmental sources. Landlord expressly agrees that, with repect to any term of this lease, Tenant will not be liable to Landlord for any money due under this lease unless and until it receives such funding, in sufficient amount, for the period corresponging to that term. However, in nG circumstances may Tenant occupy the premises for the remainder of any term of this lease if Tenant has not completely paid the total rent for that term. Tenant will notify Landlord of the likelihood of receiving funding for the period of next term of this lease and of Tenant's desire to renew this lease at least to days before the expiration of any term of this lease. Tenant's security deposit, specified in section 6 of this lease agreement, will be forfeited if Tenant fails to give notice as specified above. 4. Tenant may renew this lease agreement annually for a total of five years, with the sames terms, conditions, and covenants except for the duration of the term and the total amount of rent due. within the first five years of renewals of this lease agreement, the total amount of rent due will be calculated by multiplying the duration of the term in months by an amount, to be mutually agreed on by the parties, that represents the median monthly leasing rate of similar properties, similar lease agreements, which amount will be in effect for the next two years and which amount will be redetermined every two years thereafter, lease term to be annual. ,��e ��/