Ordinance No. 7,807960912 -30
ORDINANCE NO. 7807
® AN ORDINANCE AUTHORIZING AND DIRECTING THE MAYOR OF THE
CITY OF BAYTOWN TO EXECUTE A MODIFICATION AND RATIFICATION
OF LEASE AGREEMENT BETWEEN THE CITY OF BAYTOWN AND I -10
REALTY, L.P.; AUTHORIZING PAYMENT OF HOUSTON HIDTA FUNDS
MANAGED BY THE CITY OF BAYTOWN, THE SUM OF ONE HUNDRED
THIRTEEN THOUSAND NINE HUNDRED ONE AND 12 /100 DOLLARS
($113,901.12); 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 authorizes and
directs the Mayor of the City of Baytown to execute a Modification and Ratification of Lease
Agreement between the City of Baytown and I -10 Realty, L.P. A copy of said agreement is attached
hereto, marked Exhibit "A," and made a part hereof for all intents and purposes.
Section 2: That the City Council of the City of Baytown authorizes payment of Houston
HIDTA funds managed by the City of Baytown to I -10 Realty, L.P., the sum of ONE HUNDRED
THIRTEEN THOUSAND NINE HUNDRED ONE AND 12/100 DOLLARS ($113,901.12),
pursuant to the Agreement.
Section 3: 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 12th day of September, 1996.
/-fi&
PETE C. ALFAA6, Mayor
ATTEST:
FILEEN P. HALL, City Clerk
APPROVED AS TO FORM:
® jGf1JACIO RAMIREZ, S6., City Attorney
c:l council lmectingslscptembelhcocleas. 12
is MODIFICATIO' *: AND RATIFICATION OF LEASE
This Modification and Ratification of Lease Agreement to that certain "Lease Agreement"
between I -10 Realty, L.P., By: East Atrium Management, Inc., G.P. ,( "Landlord ") and the City of
Baytown ( "Tenant "), dated October 22, 1991, is made by and between the same parties on the date
herein last specified.
WITNESSETH
WHEREAS, Landlord and Tenant did enter into a Lease Agreement on October 22, 1991,
for the rental of Suite 260 in the office building located at 11821 I -10 East Freeway, Houston, Texas;
and
WHEREAS, Landlord and Tenant now desire to amend the Lease Agreement to extend the
term of the Lease Agreement and to amend certain provisions thereof as enumerated hereinbelow;
NOW THEREFORE, for and in consideration of the mutual covenants and agreements herein
contained, the sufficiency and receipt of which is acknowledged, the parties hereto do hereby
mutually agree as follows:
I
Unless a different meaning clearly appears from the context, words and phrases as used in
this Amendment shall have the same meaning as in the Agreement.
I1.
Exhibit "C" "ACCEPTANCE OF PREMISES MEMORANDUM" is hereby amended to
read as follows:
Landlord and Tenant hereby agree that :
1. Tenant accepts leased premises in "as is" condition except that
Landlord shall have the common area carpet shampooed and
stretched, which such work shall be performed within ten (10) days
hereof.
2. The Leased Premises are tenable, the Landlord has no further
obligation for construction (except as specified above), and the
Tenant acknowledges that both the Project and the Leased Premises
are satisfactory in all respects.
® Modification and Ratification of Lease, Page I
EXHIBIT A
3. The Conmencement Dail, of this Modification and Ratification of
® Lease shall be upon �t,e expiration of the Lease Agreement dated
October 11, 1991, which is currently in effect and shall remain in
effect until its expiration. There shall be no lapse in rental coverage.
4. The Expiration Date of the Lease is hereby agreed to be the 31 st day
of October, 1999.
III.
Item C of the Paragraph entitled "Basic Lease Provisions" is hereby amended to read as
follows:
C. Term: 0 years and 0 months
IV.
Item D of the Paragraph entitled "Basic Lease Provisions" is hereby amended to read as
follows:
D. Target Commencement Date: November 1. 1996
V.
Item E of the Paragraph entitled "Basic Lease Provisions" is hereby amended to read as
follows:
E. Expiration Date: Last day of October, 1999
VI.
Section 2.2, Subsecrtion A is hereby amended to read as follows:
A. In consideration of the Base Rent provided for herein, Landlord shall
pay the Basic Cost (as hereinafter defined) of repairing, maintaining, and operating
the Project and the Leased Premises hereby leased.
Modification and Ratification of Lease, Page 2
0 VII.
Section 2.2, Subsection C is hereby deleted.
VIII.
Section 2.3 is hereby amended to read as follows:
Section 2.3 Late Chafe. In the event Tenant fails to pay any installment of rent
as and when such payment is due, to help defray the additional cost to Landlord for
processing such late payments, Tenant shall pay to Landlord on demand a late charge
in an amount equal to one percent (I %) of any payment overdue per month. Such
interest on an overdue payment stops accruing on the date the Tenant mails or
electronically transmits the payment to Landlord. The provision for such late charge
shall be in addition to all of Landlord's other remedies hereunder or at law and shall
not be construed as liquidated damages or as limiting Landlord's remedies in any
manner.
IX.
The last sentence of Section 5.4 is hereby amended to read as follows:
In the event of any failure, stoppage or interruption thereof, however, Landlord shall
use its reasonable diligence to resume service promptly.
94
Section 5.5 is hereby amended to read as follows:
Section 5.5. Modifications Notwithstanding anything hereinabove to the contrary,
Landlord may make reasonable and nondiscriminatory major modifications to the
above standards for utilities and services with the express written consent of Tenant.
/M
Section 3.1 is hereby amended to read as follows:
A. Tenant shall at its own cost and expense keep and maintain all parts of the
Leased Premises (except for those which Landlord is expressly responsible under the
Modification and Ratification of Lease, Page 3
terms of this Lease) in good condition, promptly making all necessz,.v repairs and
replacements should the same be necessitated due to the actions or - :missions of the
Tenant. Tenant shall not be obligated to repair any damage caused by fire, tornado
or other casualty, including, but not limited to wind damage.
XII.
Section 7.3 is hereby amended to read as follows:
Section 7.3. Total Destruction. If the buildings of which the Leased Premises
are a part should be totally destroyed by fire, tornado or other casualty, or if they
should be damaged, this Lease shall terminate and the rent shall be abated during the
unexpired portion of this Lease, effective upon the date of the occurrence of such
damage.
XIII.
Section 7.4 is hereby amended to read as follows:
Section 7.4. Partial Destruction. If the building situated upon the Leased
Premises should be damaged by any peril, Landlord shall at its sole cost and expense
proceed with utmost diligence to rebuild and repair such buildings to substantially
the condition in which they existed prior to such damage; however, Landlord shall
not be required to rebuild, repair or replace any part of the partitions, fixtures,
additions and other improvements which may have been placed in, on or about the
Leased Premises by Tenant. If the Leased Premises are untenantable in whole or in
p`rt as determined by Tenant following such damage, the rent payable hereunder
during the period in which they are untenantable shall be abated and Tenant has the
right to terminate the Lease without any further obligation hereunder. Nothing herein
should, however, be construed as requiring Tenant to remain obligated under the
Lease, for if such premises are untenable as determined by Tenant for any period of
time. Tenant may at its sole option terminate this Lease by delivering written notice
of termination to Landlord, whereupon all rights and obligations hereunder shall
cease and terminate.'
XIV.
The Section 7.6 is hereby deleted.
0 fvtodification and Ratificatign of Lease, Page 4
Xv.
Section 9.1 is hereby amended to read as follows:
Section 9.1 Liabili and Tenant's Insurance. Landlord shall not be
liable to Tenant or Tenant's employees, agents, patrons or visitors, or to any other
person whosoever, for any injury to person or damage to property on or about the
Leased Premises, not resulting from and/or not caused in part or whole by the
negligence of Landlord. Tenant shall procure and maintain throughout the term of
this Lease a policy or policies of insurance, at its sole cost and expenses, insuring
both Landlord and Tenant against claims, damages or actions arising out of or in
connection with (i) the Leased Premises; (ii) the condition of the Leased Premises;
(iii) Tenant's operations in and maintenance and use of the Leased Premises; and (iv)
Tenant's liability assumed under this Lease, the limits of such policy or policies to
be in the amount of not less than five hundred thousand dollars ($500,000) per
occurrence in respect of injury to persons (including death), and in the amount of not
less than one hundred thousand dollars ($100,000) per occurrence in respect of
property damage or destruction, including loss of use thereof. All such policies shall
be procured by Tenant from responsible insurance companies satisfactory to
Landlord. Certified copies of such policies, together with receipt evidencing
payment of premiums therefor, shall be delivered to Landlord upon request. Such
policies shall further provide that not less than thirty (30) days written notice shall
be given to Landlord before such policy may be canceled or changed to reduce
insurance provided thereby.
XV I.
Section 10.1 is hereby amended to read as follows:
Section 10.1. Condemnation. If during the term of this Lease all or
such a substantial part of the Leased Premises should be taken for any public or
quasi- public use under any governmental law, ordinance or regulation or by right of
eminent domain or by private purchase in lieu thereof, and if such taking would
prevent or materially interfere with the use of the Leased Premises for the purposes
for which this Lease'allows, this Lease shall terminate and the rent shall be abated
during the unexpired portion of the Lease, effective on the date physical possession
is taken by condemning authority.
In the event a portion of the Leased Premises shall be taken for any public or
quasi-public use under any governmental law, ordinance or regulation, or by right of
eminent domain, by private sale in lieu thereof and this Lease is not terminated as
provided above, Landlord shall at Landlord's sole cost and expense, restore and
0 . Modification and Ratificatipn of Lease, Page 5
recorst mot the Leased Premises to the extent necessary to make the same reasonably
ter able. The rent payment hereunder during the unexpired portion of the Lease shall
be adjusted to such extent as may be fair and reasonable under the circumstances.
Landlord shall be entitled to receive and retain the award for the taking of the
Leased Premises; however, tenant shall be entitled to the award only for the taking
of any of its personal property located on the premises.
If in the event of a partial condemnation or taking, Landlord is required or
elects to repair or restore the Leased Premises, Landlord shall not be obligated to
expend for such repair or restoration any amount in excess of the award recovered
by Landlord as a result of such condemnation or taking. If at the time a
condemnation or taking occurs there is a mortgage, deed of trust or other security
instrument covering the Project in which the Leased Premises is a part and the holder
of the indebtedness secured by any such security instrument elects to have the award
payable as a result of such condemnation or taking applied against the secured
indebtedness, Landlord shall not be obligated to repair or restore the Leased
Premises, notwithstanding any other provisions to the contrary herein contained and
in such event this Lease shall terminate and the rent shall be abated during the
unexpired terra of this Lease, effective with the date of such condemnation or taking.
If the Leased Premises are not tenable or are not going to be restored in a manner
sufficient to accommodate Tenant's operations as determined by Tenant, Tenant has
the right to terminate this Lease without any further obligation or expense by giving
Landlord written notice of the same. Furthermore, should Tenant decide not to
terminate the Lease, Landlord shall make appropriate adjustments to Tenant's rental
payments should Tenant be unable to continue its operations in the full rental space
provided for herein.
XVII.
Section 11. 1, Subsection (1) is hereby amended to read as follows:
(1) Tenant shall fail to pay any installment of the rent or other sums or
charges payable under this Lease on the date the same is due and such failure shall
continue for a period-of fifteen (15) days after the Tenant is notified of such failure
by the Landlord.
0 Modification and Ratification of Lease, Page 6
® XVIlI.
Section 11.2 (2) is hereby amended to read as follows:
(2) Enter upon and take possession of the Leased Premises and expel or
remove Tenant and any other person who may be occupying said premises or any part
thereof, by force if necessary, without being liable for prosecution or any claim for
damages therefor, and relet the premises and receive the rent therefor.
M.
Section 11.2 (3) is hereby amended to read as follows:
(3) Enter upon the Leased Premises by force if necessary and do whatever
Tenant is obligated to do under the terms of this Lease, and Tenant agrees to
reimburse Landlord within thirty (30) days after receipt of an invoice for any
reasonable expenses which Landlord may incur in thus effecting compliance with
Tenant' obligations under this Lease.
Section 11.4 is hereby deleted.
M
XXI.
Section 11.5 is hereby amended to read as follows:
Section 11.5 Landlord's Default. In the event Landlord breaches any
covenant, warranty, term or obligation of this Lease and Landlord fails to cure same
or commence a good faith effort to cure same within thirty (30) days after written
notice thereof by Tenant (unless such default cannot reasonably be cured within said
thirty (30) day period, in which event Landlord shall have such additional time as is
reasonably necessary within which to cure such default, so long as Landlord
commences the cure within said thirty (30) day period and diligently prosecutes the
cure thereof), Tenant shall be entitled to cure the default and make any necessary
repairs. Any reasonable expenses incurred by Tenant shall be reimbursed by the
Landlord after thirty (3 0) days notice of the repairs and expenses incurred.
0 Modification and Ratification of Lease, Page 7
XXII.
Section 12.2 is hereby amended to read as follows:
Section 12.2 Necessary Instruments. Tenant shall execute and deliver
whatever instruments may be required by Landlord's mortgagees for the purpose of
subordinating this Lease or making this Lease superior within thirty (30) days written
notice by such mortgagee or its trustee.
XXIII.
Section 13.1 is hereby amended to read as follows:
Section 13.1 Mechanic's Liens. Tenant shall have no authority, express
or implied to create or place any lien or encumbrance of any kind or nature
whatsoever upon, or in any manner to bind, the interest of Landlord in the Leased
Premises or to charge the rentals payable hereunder for any claim in favor of any
person dealing with Tenant, including those who may furnish materials or perform
labor for any construction or repairs, and each such claim shall affect and each such
lien shall attach to, of at all, only the Ieasehold interest granted to Tenant by this
instrument. Tenant covenants and agrees that it will pay or cause to be paid all sums
legally due and payable by it on account of any labor performed or materials
furnished in connection with any work performed on the Leased Premises on which
any lien is or can be validly and legal asserted against its leasehold interest in the
Lease Premises or the improvements thereon.
Section 14.1 is hereby amended to read as follows:
Section 14.1 Assignment by Landlord. Landlord may sell, transfer or
assign his interest hereunder with the prior written consent of Tenant. After such sale
transfer or assignment, Tenant shall attom to such purchaser, transferee or assignee,
and Landlord shall be released of all obligations hereunder arising or accruing after
the effective date of such sale transfer or assignment.
® Modification and Ratification of Lease, Page 8
0 XXV.
Section 16.6 is hereby amended to read as follows:
Section 16.6 Brokers. Tenant warrants that it has had no dealings with
any broker or agent in connection with the negotiation or execution of this Lease
other than brokers specified in item I of the Basic Lease Provisions.
"
Section 16.16 is hereby added to read as follows:
Section 16.16. Non - funding Provision. Tenant's total payment to
Landlord shall be $9,491.76 per month. However, should funding become
unavailable due to the fact that the Criminal Justice Division Office of the
Governor's Office does not approve the Harris County Organized Crime/Narcotics
Annual Budget, this Lease Agreement can be terminated by giving Landlord ninety
(90) days written notice. The budget approvals are currently received during the
month of May each calendar year. Cancellation of this agreement for this specific
reason must be given to Landlord Division Office, such cancellation must be given
within thirty (30) days after the notice of unavailable funding is given. Tenant shall
pay all rent and other charges due through and including the effective date of
termination.
.P :M
The provisions of this Amendment and the provisions of the Agreement should be read
together and construed as one agreement provided that, in the event of any conflict or inconsistency
between the provisions of this Amendment and the provisions of the Agreement, the provisions of
this Amendment shall control.
KWUT 11
Item I of the Basic Lease Provisions is hereby amended to read as follows:
Brokers are David Deane and Susan Morris of CB Commercial Real Estate
Group, Inc.
isModification and Ratification of Lease, Page 9
IN WITNESS WHEREOF, the parties hereto have executed his Amendment in multiple
copies, each of which shall be deemed to be an original, but all of xxuch shall constitute but one and
the same amendment, this day of , 1996, the date of the last signature
hereto.
Landlord: I -10 REALTY, L.P.
BY: EAST ATRIUM MANAGEMENT
INC., G.P.
BY:
(Printed Name and Title)
Tenant: CITY OF BAYTOWN
ATTEST:
EILEEN P. HALL, City Clerk
APPROVED AS TO FORM:
ACIO RAMI SR., City Attorney
0 .Modification and Ratification of Lease, Page 10
PETE C. ALFARO, Mayor
•
IL",-]
STATE OF TEXAS
COUNTY OF HARRIS
Bef re me on this day personally appeared A Re't, �r C.� , in his
capacity asT- r£G of I -10 REALTY, L.P., on behalf of such corporation,
known to me to be the person whose name is subscribed to the foregoing instrument and
acknowledged to me that he executed the same for the purposes and consideration therein expressed.
SUBSCRIBED AND SWORN before me this }day of 31996.
CONNIE WIEGEL
err COMAISSION EXPIRES
Febntaq 20, 2000
c:klh Mpolicelhidta.lease
Modification and Ratification of Lease, Page 11
L9 tT -
Notary Public in and for the State0of Texas