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HomeMy WebLinkAboutResolution - 2004-R0026 - Lease Agreement With Marco Steel & Aluminum Co. - 01_22_2004RESOLUTION Resolution No. 2004-R0026 January 22, 2004 Item No. 29 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 an Amendment #2 to Lease Agreement with Marco Steel & Aluminum Co. adding the remaining portion of Building #714 to their leased premises at Lubbock International Airport. Said Amendment is attached hereto and incorporated in this Resolution as if fully set forth herein and shall be included in the minutes of the Council. ATTEST: ~#«-~ Rebecca Garza, City Secretary 1$ - APPROVED AS TO CONTENT: APPROVED AS TO FORM: --~~ ~·C-C__ ... ~Y ~r-r--~· Linda L. Chamales, Supervising Attorney Office Practice Section Lc:city att/Linda/Res-Marco Steel amend #2 January 7, 2004 ! I Resolution No. 2004-R0026 January 22, 2004 STATE OF TEXAS COUNTY OF LUBBOCK Item No. 29 § KNOW ALL MEN BY THESE PRESENTS: § AMENDMENT #2 TO LEASE AGREEMENT This Agreement is entered into by the CITY OF LUBBOCK (referred to herein as Lessor), a Home Rule Municipality of Lubbock County, Texas, and MARCO STEEL & ALUMINUM CO. (referred to herein as Lessee). WITNESSETH: WHEREAS, Lessor and Lessee executed a Lease Agreement on the 28th day of March, 2002, in which Lessee was granted certain rights and privileges for storing and processing steel and steel products in Building #716 and a portion of Building #718 at Lubbock International Airport; and WHEREAS, Lessee exercised its right of first refusal (Article Five, Paragraph 5.01) and amended the Lease by adding the office space in Building #714 to their leased premises executed December 19, 2002; WHEREAS, Lessee desires to amend the lease beginning February 1, 2004 by adding the remaining portion of Building #714 to their leased premises; NOW THEREFORE, Lessor and Lessee agree as follows: I. Article One, Section 1.01 entitled "LEASED PREMISES" is amended to read as follows: "Lessor does hereby lease unto Lessee the premises described and being: Warehouse space and land as shown on Exhibit "A" attached hereto and incorporated herein by reference, which warehouse space and land are hereinafter referred to as "leased premises" or "premises." Amendment #2 to Marco Steel & Aluminum Co. Pagel I , LUUJ-f-~C02l_e Building #716, 5618 N. David Avenue: 16,000 square feet Building #718, 5620 N. David Avenue: 10,000 square feet (east portion of 16,000 square foot building) Adjacent Land East of Building #716: 16,200 square feet Building #714, 5612 N. David Avenue: 1,724 square feet of office space and 14,276 of warehouse space" II. Article Three, Section 3.01, Paragraphs E and Fare amended to read as follows: "E. Building rental of #714 (Warehouse Space): 14,276 square feet @ $0.8844 per square foot per year. The annual rental being TWELVE THOUSAND SIX HUNDRED TWENTY-FIVE AND 69/100 DOLLARS ($12,625.69), which shall be due and payable, in twelve (12) equal monthly installments of ONE THOUSAND FIFTY-TWO AND 14/100 DOLLARS ($1,052.14) per month. F. Hazard And Extended Insurance: For consideration of the insurance provisions specified at Article 6, 6.10, Lessee agrees to pay an annual payment to Lessor for Hazard and Extended Coverage insurance for the duration of this Lease, including any extension thereof. Lessee agrees to pay THIRTEEN THOUSAND EIGHT HUNDRED SIXTY AND N0/100 DOLLARS ($13,860.00) (Building #716-16,000 sq. ft., Building #718-10,000 sq. ft. and Building #714-16,000 sq. ft.@ $.33 per sq. ft. per year) for the first year of this Agreement. Lessor may adjust said payment for the subsequent years of this Lease and any extension thereof in order to reflect the actual reasonable cost to Lessor to provide coverage of said insurance. Lessee shall have the option ( only for Buildings #716 and #714) to purchase its own Hazard and Extended Coverage insurance based on building replacement value ($880,000 / $55.00 per sq. ft.), provided that Lessor approves of the amount and type of insurance purchased by Lessee. If Lessee provides the Hazard and Extended Coverage Insurance, Lessor shall be named as an additional insured on the policy. Lessee shall Amendment #2 to Marco Steel & Aluminum Co. Page2 furnish the Director of Aviation with evidence that such msurance coverage has been procured and is being maintained. Such payment shall be payable on or before the 20th day of each month in the amount of ONE THOUSAND ONE HUNDRED FIFTY-FIVE AND N0/100 DOLLARS ($1,155.00) per month for the first year of this Lease in twelve (12) equal monthly payments. The subsequent payments due to Lessor during the remaining years of this Lease, including any extension thereof, shall be payable on or before the 20th day of each month and said payments shall be apportioned over each year in the amount of one-twelfth (1/12) of each annual payment." Executed this 22nd day of ___ J_a_n_u_a_ry..__ ___ , 2004. CITY OF LUBBOCK ATTEST: APPROVED AS TO CONTENT: Jo MARCO STEEL & ALUMINUM BY: ~___.,--'5 Title: ("':)".WQ_,,.(_ h!\Si.,,°'b5;SL,. Date: \ { <l/ 7 uA APPROVED AS TO FORM: ~~.c;;Y~~~~. Linda Chamales, Supervising Attorney-Office Practice Amendment #2 to Marco Steel & Aluminum Co. Page3