Loading...
HomeMy WebLinkAboutResolution - 4122 - Lease Agreement- John Farquhar- Meadowbrook Golf Course Driving Range Operation - 04_08_1993Resolution No. 4122 April 8, 1993 Item #30 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 Agreement with John Farquhar for the operation of the Meadowbrook Golf Course Driving Range, 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: BettyuK. Jo n on, City Secretary APPROVED TO CONTENT: Lee Os orn, Direc'for—of Par s an Recreation APPROVED AS TO FORM: Haro Wi ar Assistant City Attorney BW:da/AGENDA-D3/A-MDWBRK.res rev. March 31, 1993 Resolution No. April 8, 1993 Item #30 LEASE AGREEMENT THE STATE OF TEXAS COUNTY OF LUBBOCK This Agreement is entered into this 8th day of April , 1993, by and between the City of Lubbock, Texas, hereinafter referred to as "Lessor," and John Farquhar, of Lubbock, Texas, hereinafter referred to as "Lessee." WITNFSSETH: WHEREAS, Lessor operates Meadowbrook Golf Course in MacKenzie Park primarily for the use, benefit and enjoyment of the citizens of the City of Lubbock; and WHEREAS, the City desires to lease the driving range at Meadowbrook Golf Course to a tenant who is qualified to manage the facility and who will upgrade and make capital improvements to the facility; and WHEREAS, Lessee has represented to the City that he has the experience and expertise necessary and is otherwise qualified to manage the driving range at Meadowbrook and that he will enhance and improve the facility both cosmetically and functionally as Lessee; and WHEREAS, the City Council of the Lessor deems it to be in the best interest of the citizens of the City to execute this Agreement with Lessee; ARTICLE I NOW THEREFORE, for and in consideration of the covenants and conditions herein contained and other valuable consideration, Lessor hereby authorizes Lessee to exercise the rights, powers and privileges hereinafter set forth and does hereby lease to the Lessee the Meadowbrook Golf Course Driving Range, hereinafter sometimes called "Leased Premises." ARTICLE II TERM The initial term of this Agreement shall be for a period of one (1) year beginning on the 15th day of April , 1993, and ending on the 14th day of April , 1994. Lessee may renew this Agreement for one (1) additional year by giving the Director of Parks for the City of Lubbock written notice of Lessee's desire to renew at least thirty (30) days prior to the expiration of the initial term of this Agreement. However, Lessor may terminate this Agreement with or without cause at any time during the renewal period upon sixty (60) days written notice to Lessee. If Lessor elects to terminate this Agreement pursuant to this provision, Lessee shall pay to Lessor a pro-rata share of the annual rental due under Article III of this Agreement up to the date of termination. ARTICLE III RENTALS In consideration of the rights and privileges herein granted, Lessee agrees to pay to Lessor during the initial term of this Agreement an annual rental of NINE THOUSAND AND N0/100 DOLLARS ($9,000) payable in installments of SIX THOUSAND AND NO/100 DOLLARS ($6,000) not later than six (6) months after the beginning of the initial term and THREE THOUSAND AND NO/100 DOLLARS ($3,000) not later than eleven (11) months after the beginning of the initial term. If Lessee renews this Agreement for one additional year, Lessee shall pay to Lessor during such additional year an annual rental of FIFTEEN THOUSAND AND NO/100 DOLLARS ($15,000) payable in two equal installments not later than six (6) months and eleven (11) months, respectively, after the beginning of the additional year. All rental payments due from Lessee shall be payable to the Lessor at the office of the Director of Parks for the City of Lubbock or as otherwise directed by the City Secretary of the City of Lubbock. If Lessee fails to pay any rentals when due, Lessor may, at its option, immediately or at any time thereafter, cancel this Agreement and enter into and upon the Leased Premises, or any part thereof in the name of the whole, and repossess the same without being deemed guilty of trespass. Such option, however, shall not relieve Lessee of his obligation to pay Lessor any unpaid rentals. ARTICLE IV DAILY OPERATIONS AND FEES Except during periods of inclement weather, Lessee agrees to adequately staff, operate and maintain the driving range facility for the benefit of its patrons seven days per week from 8 a.m. until 10 p.m. during winter months (December, January and February) and from 7 a.m. until 11 p.m. during all other months for each year this Agreement remains in effect. Lessee also agrees to charge users of the facility reasonable fees which are competitive with similar facilities which exist in the Lubbock and West Texas areas. ARTICLE V CAPITAL IMPROVEMENTS AND REPAIRS In further consideration of the rights and privileges herein granted, Lessee agrees to systematically make the following improvements to the Leased Premises in order to upgrade and enhance the driving range with a minimum amount of disruption to the operations, to wit: (1) Repair/refurbish the existing office. (2) Refurbish driving pads and install new pads as required. (3) Expand the number of hitting areas to facilitate periodic relocation of tee markers and replant hitting areas with bermuda grass each spring as necessary. LEASE AGREEMENT - Page 2 (4) Level landing areas and overseed with Park Mix each spring as necessary. (5) Install yardage markers and targets. (6) Establish an isolated instruction area. (7) Consider the installation of an irrigation system and the feasibility of a five -to - nine -hole par -three golf course adjacent to the driving range and cart barn. ARTICLE VI EQUIPMENT In addition to those improvements enumerated above, Lessee herein agrees to provide (unless already provided) and maintain the following equipment on the driving range, to wit: (1) one "E-2" brand ball picker (2) one ball washing machine (3) one gasoline -powered golf cart (4) one small tractor (5) one small mower for the teeing area (6) 500 dozen golf balls at the beginning of the initial term (7) 500 dozen additional golf balls by the middle of summer during the initial term (8) assorted "loaner" clubs at an unspecified date ARTICLE VII MARKETING Lessee further agrees to promote use of the driving range facility through advertising in radio, television and print media and through special events which may include, but need not be limited to, the following: (1) Driving and chipping contests for the public and for local golf teams. (2) Golfing clinics for men, ladies, juniors and seniors. ARTICLE VIII INSURANCE Lessee shall maintain at all times this Agreement is in effect, at his sole expense, insurance with an insurance underwriter acceptable to Lessor and authorized to do business in the State of Texas, against claims of public liability and property damage resulting from activities on the Leased Premises. The amount of insurance coverage shall not be less than LEASE AGREEMENT - Page 3 ONE HUNDRED THOUSAND DOLLARS ($100,000) for property damage as a result of any one event, or less than THREE HUNDRED THOUSAND DOLLARS ($300,00) for personal injury or death of any one person in any one event, or less than FIVE HUNDRED THOUSAND DOLLARS ($500,000) for personal injury or death of two or more persons in any one event. Certificates of insurance or other satisfactory evidence of insurance shall be filed with the City Secretary of the City of Lubbock prior to the commencement of the initial term of this Lease. Each policy shall name the City of Lubbock as an additional insured as its interest may appear, require the insurer to notify the Lessor of any alteration, nonrenewal or cancellation, and remain in full force and effect until at least ten (10) days after such notice of alteration, nonrenewal or cancellation is received by the Lessor. ARTICLE IX HOLD HARMLESS Lessee agrees to indemnify, defend and forever save Lessor, its authorized agents, representatives and employees, harmless from and against any and all penalties, liability, annoyances or losses resulting from claims or court actions of any nature arising directly or indirectly out of any acts or omissions of Lessee, its agents, servants, guests, employees or business visitors under this Agreement. ARTICLE X MAINTENANCE Lessee agrees that he will at all times this Agreement remains in effect maintain the Leased Premises and all facilities and equipment thereon in good condition, ordinary wear and tear excepted. Lessor assumes no responsibility for the condition of the Leased Premises and no responsibility for maintenance, upkeep or repairs to such Leased Premises. Lessee shall, at his own expense, provide for the adequate sanitary handling and disposal, away from the driving range, of all trash, garbage and other refuse that results from Lessee's operations on the Leased Premises. Lessor's Director of Parks, or his designated representative, shall have the right to inspect the Leased Premises at all reasonable times to ensure that the Leased Premises are being properly maintained. ARTICLE XI FIXTURES While this Agreement is in effect, any property installed on the Leased Premises which becomes permanently attached to the premises shall become the property of the Lessor upon termination or cancellation of this Agreement. LEASE AGREEMENT - Page 4 ARTICLE XII LIENS Lessee shall not bind or attempt to bind Lessor for the payment of any money in connection with installations, alterations, additions or repairs on the Leased Premises or on any of the fixtures or equipment located on the Leased Premises and shall not permit any mechanic's, materialmen's or contractor's liens to arise against the driving range or any improvements, equipment, machinery or fixtures thereon. Lessee expressly agrees that he will keep and save the premises and Lessor harmless from all costs and damages resulting from any lien or liens of any character or that may be asserted through any act or thing done by the Lessee. ARTICLE XIII DESTRUCTION OF PREMISES If, through no fault of Lessee, the Leased Premises are damaged by fire or other accidental cause during the term of this Agreement so as to become totally or partially unusable, Lessor shall have the option to restore such Leased Premises. If Lessor exercises its option to restore the same, Lessor shall proceed with due diligence. If the damage is so extensive as to amount practically to the total destruction of the utility of the Leased Premises for the uses expressed in this Agreement, Lessee's obligation to pay rentals hereunder shall abate for the time and to the extent that the Leased Premises have been rendered unusable. Should Lessor not exercise its option to restore the Leased Premises, this Lease shall terminate, such termination to be effective on the date of damage by fire or other accidental cause, and all rentals due pursuant to this Agreement shall be apportioned to that date. ARTICLE XIV CONSTRUCTION Lessor's Director of Parks shall have the right to approve any construction or remodeling on the Leased Premises while this Agreement remains in effect. ARTICLE XV TAXES AND UTILITIES Lessee shall assume responsibility for the payment of any taxes and assessments levied on the business conducted on the Leased Premises or becoming due on the property of Lessee used in connection therewith from the date of execution of this Agreement. Lessee agrees to pay for all utility charges resulting from or connected with Lessee's use of the Leased Premises including, but not limited to water, gas, electricity, telephone and sewage disposal. ARTICLE XVI TERMINATION Upon written notice to Lessor, Lessee may terminate this Agreement for any material breach by Lessor of any of the terms, covenants or conditions of this Agreement to be kept, LEASE AGREEMENT - Page 5 performed or observed by Lessor, and the failure of Lessor to remedy such breach within ten (10) days after written notice from Lessee of the existence of such breach. In addition to the right to immediately cancel this Agreement under Article III, Lessor may terminate this Agreement for any of the following reasons: (1) If Lessee shall file a voluntary petition of bankruptcy; or if proceedings in bankruptcy shall be instituted against Lessee and Lessee is thereafter adjudicated as bankrupt pursuant to such proceedings; or if a court shall take jurisdiction of Lessee and its assets pursuant to proceedings brought under the provisions of any federal reorganization act; or if a receiver for Lessee's assets is appointed under state or federal law, or if Lessee shall be divested of its rights, powers and privileges under this Agreement by other operation of law. (2) If Lessee shall abandon and discontinue operations under this Agreement. (3) If Lessee materially breaches any of the terms, covenants or conditions contained in this Agreement to be kept performed and observed by Lessee and Lessee fails to remedy such breach within ten (10) days after written notice from Lessor of the existence of such breach. (4) If Lessee shall fail to abide by all applicable laws, ordinances, rules and regulations of the United States, the State of Texas and the City of Lubbock. (5) If the governing body of Lessor elects to lease or privatize the operation of Meadowbrook Golf Course. ARTICLE XVII ASSIGNMENTS AND SUBLEASES Except with prior written consent of the Lessor, Lessee shall not sublet any part of the Leased Premises or assign any of its rights hereunder. No such assignment or subletting made with Lessor's consent shall affect Lessee's obligations to make all required rental payments hereunder upon default of any assignee or subtenant. ARTICLE XVIII MISCELLANEOUS PROVISIONS Notices to the Lessor required herein shall be sufficient if sent by certified mail, postage prepaid, and addressed to the Director of Parks for the City of Lubbock, P.O. Box 2000, Lubbock, Texas 79457, and notices to the Lessee shall be sufficient if sent by certified mail, postage prepaid, to the address for Lessee on file with the Director of Parks for the City of Lubbock, or to such other addresses as the parties may designate to each other in writing from time to time. In the event Lessee remains in possession of the Leased Premises after the expiration of this Agreement, without any written renewal or extension of this Agreement, such holding over shall not be deemed as a renewal or extension of this Lease, and may be terminated at any time by Lessor. LEASE AGREEMENT - Page 6 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year above first written. ATTEST: Betty . Johns , City Secretary APP V D AS TO CONTENT: Lee sborn, irector of Parks and Recreation APPROVED AS TO FORM: aroldWillard: Assistant City Attorney RW: da/1NST-D9/A-MDWBRK. doc rev. April 8, 1993 LESSEE: JOHN FA H BY: �— LEASE AGREEMENT - Page 7