HomeMy WebLinkAboutResolution - 4740 - Lease - Koch Materials Company - Lot 2, Tratct 3 Marnels Industrial Addition - 02_09_1995Resolution No. 4740
February 9, 1995
Item #32
RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to
execute for and on behalf of the City of Lubbock a Lease between the City of Lubbock and Koch
Materials Company, attached herewith, which shall be spread upon the minutes of the Council
and as spread upon the minutes of this Council shall constitute and be a part of this Resolution as
if fully copied herein in detail.
Passed by the City Council this
ATTEST:
&A-, & 0'��
Betty M. Wohfison, Ci Secretary
APPROVED AS TO CONTENT:
Ed Bucy, Right-of-WaYJAgent
9th day of February 1995.
APPROVED AS
TO FORM:
Je sell, Assistant City Attorney
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January 25, 1994
Resolution No. 4740
February 9, 1995
Item #32
LEASE AGREEMENT
9th February
This Lease Agreement ("Agreement") entered into this 27A day oMM , 1995, by and
between the CITY OF LUBBOCK, a Texas Home Rule Municipal Corporation,
LESSOR, and KOCH MATERIALS COMPANY, a Delaware corporation, LESSEE
in consideration of the mutual agreements contained herein to be kept and performed by
the parties hereto do hereby contract and agree as follows:
I.
LESSOR hereby leases unto LESSEE for a term of five (5) years beginning January 27,
1995, and ending January 27, 2000, unless terminated earlier as provided in this
Agreement, the following described tract of land:
Lot 2, Tract 3, Mamels Industrial Addition to the City of Lubbock, Lubbock County,
Texas, as shown by the official plat thereof, recorded in Volume 1072, Page 560, of the
Lubbock County Deed Records; containing 4.58 acres, more or less, including all
equipment on property (the "Leased Premises").
II.
LESSEE shall pay the sum of THREE HUNDRED AND NO/100 DOLLARS
($300.00) per month by check or money order to the CITY OF LUBBOCK, P.O. Box
2000, Lubbock, Texas 79457, ATTENTION: Ed Bucy, payable by LESSEE in advance
by the fifteenth (15th) day of each month as rental for the lease of the land herein
concerned during the first year term of this Agreement, the first payment being due,
contemporaneously with the execution of this Agreement, thereafter the rental amount
shall be adjusted annually to conform to changes in the Consumer Price Index from the
previous year. Such adjustment shall be made on or before the anniversary of this
Agreement each year and said adjustments shall be effective for one year.
LESSEE shall pay the rent in advance as aforesaid, as the same shall become due. Rent
unpaid after the due date (the fifteenth day of each month) is delinquent and will constitute
a default by LESSEE. If all rent is not paid on or before the twentieth (20th) day of the
month (the late charge date), LESSEE agrees to pay an initial late charge of Ten and
No/100 Dollars ($10.00), plus a late charge of One and No/100 Dollars ($1.00) per day
thereafter until all delinquent rent and late charges are paid in full. Daily late charges shall
not exceed Twenty -Five and No/100 Dollars ($25.00) for any single month's rent.
IV.
The purpose for which the land is to be used is for Koch Materials plant expansion and
associated asphalt activities.
LESSEE will not make or permit any use of the Leased Premises, or do or permit any act,
including the keeping of anything, in or about the Leased Premises, which, directly or
indirectly, will violate any law, ordinance, or regulation.
LESSEE must pay promptly as they become due all charges for the furnishing of water,
electricity, garbage service, and other public utilities to the Leased Premises during the
term of this Agreement, if any.
V.
LESSEE shall permit LESSOR and LESSOR's agents to enter the Leased Premises at all
reasonable times for the purpose of inspecting the same.
LESSOR reserves the right to enter the Leased Premises at all reasonable hours (and if, in
the opinion of LESSOR, an emergency exists requiring immediate action, at any time) to
make replacements, repairs, and restorations and to carry out any work activities in
connection with the improvement, safety, protection, or preservation of the Leased
Premises.
VI.
LESSEE shall hold LESSOR harmless and indemnify and defend LESSOR against any
and all claims, lawsuits, damages, or penalties arising out of or in any manner connected
with the operation and use of the Leased Premises and equipment by LESSEE, its agents,
servants, representatives, customers, or invitees, including any claims, lawsuits, damages,
or penalties arising out of any violation or alleged violation of any Federal, State, or local
statute or regulation.
LESSEE shall defend and hold harmless LESSOR against any and all claims, lawsuits,
damages or penalties arising from or associated with any environmental contamination
caused by LESSEE at or on the Leased Premises. However, LESSEE shall not have to
hold LESSOR harmless and indemnify and defend LESSOR against any and all claims,
lawsuits, damages or penalties arising from or associated with any environmental
contamination at or on the Leased Premises, which existed on or before execution of this
Agreement, including but not limited to any existing nitrate contamination, or any
environmental contamination not caused by LESSEE. LESSOR shall not sue or seek
indemnity or contribution from LESSEE for any environmental contamination existing on
or before execution of this Agreement or any environmental contamination not caused by
LESSEE.
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VII.
All improvements or alterations shall be at the sole expense of LESSEE, and LESSEE
agrees to indemnify and hold LESSOR harmless from all liabilities in any way connected
with them.
Upon the expiration, cancellation or termination of this Agreement, LESSEE shall quit
and surrender to LESSOR the Leased Premises in as good a condition and order as
existed on the date this Agreement was entered into, reasonable wear and tear excepted.
LESSEE shall have within 120 days after expiration, cancellation or termination of the
Agreement, the right to remove any and all fixtures, improvements, alterations and
personalty installed on the Leased Premises by LESSEE. To the extent reasonably
required by LESSOR, all remaining improvements and the like that were installed by
LESSEE but not removed, shall be removed by LESSEE at LESSEE's expense within
the same 120 days. LESSEE's obligations under this paragraph shall survive the
expiration or termination of this Agreement.
VIII.
LESSOR shall not be liable, and LESSEE waives all claims, for injury to or death of
persons or damage to or loss of property sustained by LESSEE or LESSEE's invitees or
guests resulting from the Leased Premises or any of its equipment or appurtenances being
out of repair, or resulting directly or indirectly from any act or neglect of any tenant or
occupant of the Leased Premises or of any other person, or from any other cause
whatsoever except the gross negligence of LESSOR. LESSEE shall be responsible for
all damages caused by its negligence or by the negligence of its agents, invitees or guests.
M
This Agreement cannot be assigned in whole or in part by LESSEE, except upon the
express written permission to such assignment by LESSOR.
X.
This Agreement may be canceled and terminated by LESSOR for nonpayment of rent or
failure of LESSEE to keep and perform any of its agreements herein contained, such
termination to be in the form of thirty (30) days written notice by LESSOR delivered or
mailed to last known address of LESSEE.
XI.
LESSOR does not warrant any of the equipment on the Leased Premises. LESSOR does
grant LESSEE the RIGHT OF OPERATION, INSPECTION, MAINTENANCE,
REPAIR, AND REPLACEMENT AT LESSEE'S sole cost and responsibility of any of
the existing equipment. LESSEE ACCEPTS THE EXISTING EQUIPMENT "AS
IS" ON THE LEASED PREMISES. NONE OF LESSOR'S EQUIPMENT IS TO
BE REMOVED FROM THE LEASED PREMISES, EXCEPT FOR REPAIRS,
TESTING, OR REPLACEMENT PURPOSES without the permission of LESSOR.
XII.
If LESSEE remains in possession of the Leased Premises after the expiration or other
termination of this Agreement, then, LESSEE shall be deemed a tenant of the Leased
Premises from month to month and subject to all of the terms and provisions of this
Agreement.
XIII.
Upon completion of the term of this Agreement, LESSOR will grant LESSEE the option
to renew this Lease Agreement for an additional five (5) year term. On the completion of
the second five (5) year term LESSOR will grant LESSEE the option to renew this Lease
Agreement for an additional five (5) year term.
XIV.
LESSEE will keep the Leased Property free from excess weed, plant, and grass growth
through routine maintenance. LESSEE will keep the Leased Property locked and secured
at all times, except when LESSEE is on the property.
X V.
All rights and remedies of LESSOR enumerated in this Agreement shall be cumulative,
and none shall exclude any other right or remedy allowed by law or provided in any other
section of this Agreement.
XVI.
If LESSEE defaults in the payment of rent or in the prompt and full performance of any
provision of this Agreement, or if the leasehold interest of LESSEE be levied on or
attached by process of law, or if LESSEE makes an assignment for the benefit of
creditors, or if a receiver is appointed for any property of LESSEE, or if LESSEE
abandons the Leased Premises, then, and in any such event, LESSOR may, if it so elects,
but not otherwise, with or without notice, either forthwith terminate this Agreement or,
without terminating this Agreement, forthwith terminate LESSEE's right to possession of
the Leased Premises. If, in any such case, LESSOR terminates this Agreement, LESSOR
shall be entitled to recover from LESSEE an amount equal to the rent currently in effect
under this Agreement for the balance of the stated term of the Agreement, less the then
fair rental value of the Leased Premises for the balance of the term.
4
XVII.
On any termination of this Agreement, or on any termination of LESSEE's right to
possession without termination of the Agreement, LESSOR may enter and repossess the
Leased Premises, and remove any and all property from the Leased Premises, without
being deemed guilty of trespass, eviction, forcible entry, or detainer.
XIX.
LESSEE shall pay on demand all of LESSOR'S expenses, including attorney's fees,
incurred in enforcing LESSEE's obligations under this Agreement.
XX.
A waiver by LESSOR of any default or breach of any term, condition, or covenant of this
Agreement by LESSEE shall not be deemed to be a waiver of any other breach of
LESSEE of the same or any other term, condition, or covenant contained in this
Agreement.
XXI.
All amounts (other than rent) owed by LESSEE to LESSOR under this Agreement shall
be paid within ten (10) days from the date LESSOR renders statements of account to
LESSEE and shall bear interest at the rate of ten percent per annum after that date until
paid.
XXII.
This Agreement shall be binding upon and inure to the benefit of the parties to the
Agreement and their respective heirs, executors, administrators, legal representatives,
successors, and assigns where permitted by this Agreement.
XXIII.
This Agreement shall be construed under and in accordance with the laws of the State of
Texas, and all obligations of the parties created under this Agreement are performable in
Lubbock County, Texas.
XXIV.
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
enforceability shall not affect any other provision, and this Agreement shall be construed
as if such invalid, illegal, or unenforceable provision had never been contained in this
Agreement.
XXV.
This Agreement constitutes the sole and only Agreement between the parties to this
Agreement and supersedes any prior understandings or written or oral agreements
between the parties respecting the subject matter of this Agreement.
XX VI.
No amendment, modification, or alteration of the terms of this Agreement shall be binding
unless the same be in writing, dated subsequent to the date of this Agreement, and duly
executed by the parties to this Agreement.
XXVII.
The rights and remedies provided by this Lease Agreement are cumulative, and the use of
any one right or remedy by either party shall not preclude or waive that party's right to use
any or all other remedies. These rights and remedies are given in addition to any other
rights the parties may have by law, statute, ordinance, or otherwise.
IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed
into on the day and year first above written
I OW LUB CK LESSEE: KOCH MATERIALS
COMP
` BY: 5n1
R. Langst Mayor Ro Witte, Vice President
ATTEST:
&-�, AA c-��Oj
Betty 14. Johnson, S retary
Approved as to content:
Ed Bucy
Approved as to Form:
J(dff ffirtsell, Assistant
City Attorney
s:\msn\1ubbock1.doc:1-13-95
ti
Scott Nichols, Assistant
Secretary
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