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HomeMy WebLinkAboutResolution - 2021-R0398 - Temporary Lease Agreement with BayCal for testing and vaccination clinic 10.12.21Resolution No. 2021-R0398 Item No. 7.11 October 12, 2021 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the act of the Mayor in executing, on behalf of the City of Lubbock, a Temporary Lease Agreement by and between the City of Lubbock and the BayCal Lubbock Partners, LLC and MBABAB, LLC as TIC c/o NetCo Investment, Inc., and all related documents, is hereby ratified in full. Said Temporary Lease Agreement is attached hereto and incorporated in this resolution as if fully set forth herein and shall be included in the minutes of the City Council. Passed by the City Council on ATTEST: Rebec a Garza, City Secre ry APPROVED AS TO CONTENT: October 12, 2021 — te�— DANIEL M. POPE, MAYOR 0— Bill Ho on, Deputy Cityt�� ag APPROVED AS TO FORM: Ry Br ke, Assistant City Attorney RES.Temp. Lease Agreement Ratification COLHD 10.4.21 Resolution No. 2021-R0398 TEMPORARY LEASE AGREEMENT This Temporary Lease Agreement (the "Lease") is made and entered into this 29th day of September, 2021 (the "Effective Date"), by and between BAYCAL LUBBOCK PARTNERS, LLC AND MBABAB, LLC AS TENANTS IN COMMON (collectively, "Landlord"), and CITY OF LUBBOCK ("Tenant"). 1. Premises. In consideration of the mutual covenants, conditions and agreements in this Lease, Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, the following described premises ("Premises"): 2717 & 2721 50th St Lubbock TX 79413, consisting of approximately 9,376 square feet (as more particularly identified in the attached Exhibit A). Condition Of Premises: Tenant agrees to accept the Premises in "as is" condition, provided however, that the plumbing, electrical, and HVAC systems shall be operational, and the below items completed. • all interior public area walls repainted a neutral color. • the interior floor is either covered in carpet or cleaned of all glue and debris • all missing ceiling tiles be replaced. • the passageway between the two areas be included • all renovations comply with local Building codes and current ADA requirements. 2. Term. a. The term of this Lease ("Term") shall commence on October 1, 2021 ("Commencement Date") and shall expire on January 6, 2022 ("Expiration Date"). Landlord shall deliver possession of the Premises to Tenant for preparation, cleaning, and general setup on or before the Commencement Date ("Delivery Date"). Upon the expiration or earlier termination of this Lease, Tenant shall quit and surrender to Landlord the Premises in the same condition as delivered to Tenant on the Commencement Date, casualty, condemnation and ordinary wear and tear excepted. b. Tenant shall not hold over in the Premises after the expiration or sooner termination of the Lease Term without the express prior written consent of Landlord. Tenant shall be liable for any Landlord costs arising out of or in connection with any delay by Tenant in surrendering and vacating the Premises, including without limitation any claims made by any succeeding tenant based on any delay, and any liabilities arising out of or in connection with such claims. If possession of the Premises is not surrendered to Landlord on the expiration or sooner termination of the Lease Term, in addition to any other rights and remedies of Landlord hereunder, at law or in equity, Tenant shall pay to Landlord for each month or portion thereof following the expiration or sooner termination of the Lease Term during which Tenant retains possession of the Premises a sum equal to one hundred fifty percent (150%) of the then -current Base Rent calculated on a monthly basis (based on a 30-day calendar month), in addition to all other Rent payable under this Lease. Landlord's acceptance of any such payment shall not constitute Landlord's consent to any holding over (which consent may only be granted expressly in writing) nor Landlord's waiver of any of its rights or remedies. If any tenancy is created by Tenant's possession of the Premises following the expiration or sooner termination of the Lease Term, the tenancy shall be on all of 0:%50th Street, Lubbock Caprnck CenterMPROPERTY MANAGEMEYftiTenants Temporary Tenants City of Lubbock Clean License Agreement -City of Lubbock 09 30 21.docx the terms and conditions of this Lease, except that Rent shall be increased as set forth above and the tenancy shall be a month -to -month tenancy, and not a renewal hereof or an extension for any further term. Nothing in this Lease shall be deemed to permit Tenant to retain possession of the Premises after the expiration or sooner termination of the Lease Term. 3. Rent. Total rent ("Rent") for the Term is $40,000.00 due and payable to Landlord due upon execution of this agreement. All Rent provided for in this Lease shall be paid to Landlord by company check and remitted to the following address: BayCal Lubbock Partners, LLC & MBABAB, LLC c/o 1 S` Commercial 2009 Porterfield Way, Suite P Upland, CA 91786. Landlord agrees to provide to Tenant a form W-9, Request for Taxpayer Identification Number and Certification, upon Landlord's execution of this Lease. Landlord acknowledges and agrees that other than Rent and utilities (including trash removal), the Rent provided herein is a "gross rent" and Tenant shall not be required to pay operating costs, insurance, taxes, or any other fees or charges, however denominated or stated. 4. Personal Property. Tenant shall famish at its sole cost and expense all personal property to be used by Tenant on the Premises. 5. Permitted Use. Tenant shall use the Premises only for COVID-19 testing and vaccination center. Landlord acknowledges and agrees that Tenant shall be permitted to provide drive through testing on the parking lot of the shopping center in a location mutually agreed by Landlord and Tenant. 6. Utilities. Landlord shall provide the following utilities to the Premises during the Term: electricity, gas, water and sewer (if applicable). Tenant agrees to place all utility accounts in its name from lease commencement to expiration, with payment made directly by Tenant to the utility provider. 7. Trash. During the Term, Tenant shall arrange and pay for all costs related to the removal from the Premises of all trash and cartons resulting from the operation of Tenant's business at the Premises. If Tenant is required to use Landlord's vendor, then any such cost shall be reasonable and competitive (and in no event greater than had Tenant contracted independently for such service) and reimbursable to Landlord, if applicable, immediately upon written invoice and request from Landlord to Tenant. 8. Assi2nment/Sublettin2. Tenant shall not assign or sublet the whole or any part of the Premises without first obtaining the prior written consent of Landlord, such consent to be in Lessor's sole and absolute discretion. 9. Maintenance and Repairs. Landlord shall at all times at its sole cost and expense keep and maintain the Premises in good condition, order and repair, including the parking lot, landscaping, roof, foundation and structural portions of the Premises, as well as the mechanical, electrical, fire protection, HVAC and other utility systems servicing the Premises, unless such repairs are necessitated by the gross negligence or willful misconduct of Tenant. During the Term, Tenant agrees to keep and maintain the interior of the Premises, and any area of the parking lot or common area used by Tenant in accordance with the Permitted Use, in a clean and orderly condition. 0:50th Street, Lubbock-Caprock Center<PROPERTY MANAGEMENT' Tenants Temporary Tenants City of Lubbock Clean License Agreement - Cay of Lubbock 09.30.2l.docx 10. Liens. Tenant shall not permit any liens to be filed against the Premises on account of the furnishing of any labor, material or supplies, or for any other cause or reason. In the event liens are filed, then Tenant shall promptly cause the same to be released, bonded or satisfied in full within ten (10) days of the date of such filing. 11. Indemnification. Tenant shall indemnify and hold Landlord harmless from and against any and all claims, actions, damages, liability and expenses in connection with loss of life or personal injury arising from or out of Tenant's occupancy or use of the Premises or any part thereof, resulting from the gross negligence or willful misconduct of Tenant, its agents, contractors or employees. Notwithstanding the foregoing, Tenant shall have no obligation to indemnify or hold Landlord harmless against claims for loss of life or personal injury arising in whole or in part out of or by reason of any act, negligence, or fault of Landlord or of its agents, servants, or employees. The parties expressly acknowledge that the Tenant's (City's) authority to indemnify and/or hold harmless any third party is governed by Article XI, Section 7 of the Texas Constitution and any provision which purports to require indemnification by the Tenant (City) is invalid. 12. Tenant's Insurance. Tenant shall carry, at its own expense, (i) commercial general liability insurance in an amount of not less than $1,000,000 per occurrence, with a $2,000,000 general aggregate for bodily injury and property damage, and (ii) all risk property insurance covering Tenant's trade fixtures, inventory and other personal property for the full replacement cost thereof. Coverage may be provided by any combination of primary and umbrella or excess policies provided that such umbrella or excess policies shall be no less broad than the underlying policies and shall have the same inception and expirations dates as the underlying coverage. Landlord shall be named as an additional insured on the aforesaid liability insurance and shall be provided with evidence confirming such coverage. 13. Landlord's Insurance. Landlord shall carry commercial property insurance, including special form perils endorsement, insuring the building of which the Premises is a part, in an amount not less than the full replacement cost. In addition, Landlord shall carry commercial general liability insurance for the property of which the Premises is a part, in at least the same amounts required of Tenant. 14. Hazardous Materials. Tenant agrees not to maintain, keep, store or permit the maintenance or storage of any dangerous, flammable or hazardous material on the Premises (other than reasonable and customary amounts as permitted under existing fire and safety rules and regulations) and further agrees to comply with all fire and safety rules and regulations affecting the Premises, provided such compliance does not require Tenant to install or modify any fire protection, fire detection or fire alarm systems in the Premises. Any such installations or modifications shall be the sole responsibility of the Landlord, unless any such installation or modification is required as a result of any particular use of the Premises by Tenant. 15. Casualty,. If all or any part of the Premises shall be damaged or destroyed by fire, earthquake, flood or other casualty so as to render the Premises untenantable in Tenant's sole opinion, then this Lease shall terminate, at the written option of Landlord or Tenant, from the date of such casualty, and upon such notice Tenant shall at once surrender the Premises and all interest therein to the Landlord, and shall not be liable for any further payments of Rent as of the date of such casualty. Any portion of the Rent applicable to the time period after the date of such casualty shall be refunded to Tenant. O: 50th Street, Lubbock-Caprock Center`PROPERTY MANAGEMENT Tenants Temporary Tenants City of Lubbock Clean License Agreement -City of 3 Lubbock 09.30.2 Ldocx 16. Quiet Enioyment. Landlord represents and warrants that Landlord has the right, power and lawful authority to enter into this Lease for the full Term hereof. Tenant, upon paying the Rent required under this Lease, shall peaceably and quietly hold and enjoy the Premises during the full Term hereof. 17. Signage. Tenant shall have the right to place its typical exterior signage on the Premises as of the later of the Effective Date of this Lease, or if applicable, the passing of the Early Termination Date set forth in section 2, subject to local sign code permitting requirements. Tenant shall use reasonable efforts to coordinate the aforementioned marketing efforts with Landlord and agrees to comply with all applicable code requirements. Upon the removal of the signs at the end of the Term, Tenant will make all necessary repairs to return the building and monuments to their original conditions prior to the installation of signs, reasonable wear and tear excepted. At no additional cost to Landlord, Landlord agrees to assist and cooperate with Tenant in obtaining any necessary signage approvals or permits, including execution of the authorization letter set forth in Exhibit `B" attached hereto. Upon Landlord's written request, Tenant agrees to display a single "For Lease" or "For Sale" sign, not to exceed 24" x 24" (such sign to be provided by Landlord). Any such sign shall not unreasonably interfere with Tenant's operation or the visibility of the Premises. 18. Zoning. Landlord represents and warrants that the Premises are zoned for retail. In the event Tenant is unable to operate its business at the Premises because of zoning issues, this Lease shall be considered null and void and Landlord shall refund to Tenant all Rent and deposits (if any) paid to Landlord on a pro rata basis, based on the number of days Tenant occupied the Premises. 19. Access to Premises. Landlord shall have access to the Premises at all reasonable times during Tenant's normal business hours and upon not less than 24 hours prior notice (except in the event of emergency), to enable Landlord (i) to examine the same and to make such repairs, additions and alterations as Landlord may be permitted to make hereunder; or (ii) to show the Premises to prospective tenants, mortgagees and purchasers. Landlord agrees to schedule such entry with Tenant in advance (unless an emergency) and, upon such entry, agrees to minimize interference with and disruption of Tenant's business. 20. Default. In the event Tenant shall be in default in the payment of any installment of Rent herein reserved more than five (5) days following written notice from Landlord, or in the event Tenant shall be in default in the performance of any other of the terms, covenants, conditions or provisions herein contained binding upon Tenant after Landlord has given Tenant fifteen (15) days prior written notice of such non-performance, Landlord shall have the right (in addition to all other rights and remedies provided by law) to terminate this Lease, to re-enter and take possession of the Premises, peaceably or by force, and to remove any property therein, without liability for damage to, and without obligation to store, such property. In the event Landlord shall be in default in the performance of any of the terms, covenants, conditions or provisions herein contained binding upon Landlord after Tenant has given Landlord fifteen (15) days prior written notice of such non-performance, Tenant shall have the right (in addition to all other rights and remedies provided by law) to terminate this Lease. 21. Notices. Except as otherwise specifically provided herein, any notice required or permitted under this Lease shall be in writing and shall be deemed to have been duly given and delivered (a) 0:50th Street, Lubbock•Caprock CenterAPROPERTY MANAGEMENTTemms TemporaryTenants City of Lubbock Clean License Agreement . City of 4 Lubbock 09.30.31.docz one (1) business day after the date on which the same has been delivered prepaid to a national courier service guaranteeing next day service, or (b) three (3) days after deposit in the United States mail, registered or certified, return receipt requested, postage prepaid, in each case addressed to the party to whom such notice is given at the address set forth below: To Tenant: City of Lubbock Bill Howerton 1314 Avenue K Lubbock, Texas 79401 To Landlord: BayCal Lubbock Partners, LLC & MBABAB, LLC as TIC c/o NetCo Investments, Inc. 1800 Preston Park Blvd., Suite 104 Plano, Texas 75093 22. Attorneys' Fees. If either Landlord or Tenant institutes any action or proceeding against the other to enforce any provision of this Lease, the non -prevailing party shall reimburse the prevailing party for all reasonable costs and expenses incurred by the prevailing party, including court costs, expenses and reasonable attorneys' fees. 23. Brokerage Commissions. Each of the parties hereto represents and warrants to the other that it has not dealt with any broker or finder in connection with this Lease. Landlord and Tenant agree to indemnify and defend (with counsel reasonably acceptable to the other) the other party and to hold the other party harmless from and against any liability for claims for commissions or fees by any other broker or finder based on the acts of the indemnifying party. 24. Entire Agreement. This Lease contains the entire agreement of the parties, all prior understanding and agreements are being merged herein. There are no oral or written agreements or representations between Landlord and Tenant except as expressly set forth in this Lease. No modifications of this Lease will be binding upon Landlord or Tenant unless made in writing and signed by each party. The terms, covenants and conditions contained herein shall inure to the benefit of, and be binding upon, Landlord and Tenant, and their respective heirs, successors and assigns. 25. Severability. If any term or provision of this Lease or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Lease or the application of such term or provision to persons or circumstances, other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Lease shall be valid and be enforced to the fullest extent permitted by law. 26. Governing Law. This Lease shall be construed in accordance with the laws of the state in which the Premises is located. 27. Force Maieure. Neither the Landlord nor the Tenant shall be liable for failure to timely perform any obligation under this Lease in the event it is prevented from so performing by strike, lockout, breakdown, communicable disease outbreak or epidemic (including without limitation COVID-19 or the coronavirus), accident, act of terrorism, order or regulation of or by any governmental authority or failure to supply or inability by the exercise of reasonable diligence to Oa501h Street. Lubbock•Caprock CmteePROPERTY MANAGENtENTTenants Temporary Tenants City of Lubbock Clean License Ageement . City of Lubbock 09 30 21 docz obtain supplies, parts or employees necessary to furnish such services or because of war or other emergency or for any other cause beyond its reasonable control (collectively, "Force Majeure"). In addition, if Tenant determines, in its reasonable judgment, that it is unable to operate its store as contemplated herein because of Force Majeure, then Tenant may terminate this Lease at any time upon notice to Landlord. Upon Landlord's receipt of Tenant's termination notice, this Lease shall terminate, and Landlord shall refund to Tenant all prepaid rent and deposits (if any) paid to Landlord (prorated based on the number of days Tenant physically occupied the Premises, if any) within ten (10) days following the effective date of such termination. 28. Counterparts and Electronic Signatures. This Lease may be executed in any number of counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. A signed copy of this Lease transmitted by facsimile, email or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original executed copy of this Lease for all purposes. 29. Time of the Essence. Time is of the essence with respect to the performance of each, every, and all of the terms, conditions, promises and provisions of this Lease. (Remainder of page left intentionally blank - Signature page follows.) O: 50th Street, Lubbock-Caprock CemerkPRGPERTY MANAGEMENT Tenants Temporary Tenants City of Lubbock Clean License Agreement - Cty , f Lubbock 09 30.2I docx IN WITNESS WHEREOF, the parties hereto have executed this Lease the day and year first above written. 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