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HomeMy WebLinkAboutResolution - 2001-R0079 - Lease Agreement For Land To Be Used As Streer Department Dirt - Purina Mills - 03_06_2001Resolution No. 2001-R0079 March 6, 2001 Item No. 15 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 for a tract of land to be used as a stack lot for street department dirt, by and between the City of Lubbock and Purina Mills, Inc. and related documents. Said contract 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 this ATTEST: Rebecca Garza, City Secretary 03 APPROVED AS TO CONTENT: Ed Bucy, Right -of -Way A& APPROVED AS TO FORM: Amy Sims Xsistant City gs: ccdocs/PurinaMills.res Jan 31, 2001 6th day of March , 2001. Resolution No. 2001-R 0079 March 6, 2001 Item No. 15 LEASE AGREEMENT This lease made this 6th day of March , 2001, by and between PURINA MILLS, INC., hereinafter called Lessor, whose address is 1401 South Hanley Road, St. Louis, Missouri 63144 and the CITY OF LUBBOCK, hereinafter called Lessee, whose address is P. O. Box 2000, Lubbock, Texas 79457. The following premises are hereby leased by Lessor to Lessee to have and to hold for the term, the uses and the rent specified below and subject to the options, if any, hereinafter provided. A. PREMISES: Situated in the County of Lubbock, State of Texas, being more particularly described as: Portion of land in Section 1, Block A, further described in attached "Exhibit A." B. USES: Lessee may only use the premises for: Stack lot for dirt. C. TERM: Beginning: February 14, 2001, and ending May 13, 2001. This lease shall be automatically renewed for additional three (3) month periods not to exceed twenty-four (24) months total unless LESSOR or LESSEE shall notify the other in writing in advance thirty (30) days before the end of a three (3) months lease period that the lease is terminated. Such notice of termination shall be mailed by the terminating party by certified United States Mail addressed to the other party, being to Armin Johnson, Purina Mills, Inc., 201 E. Municipal Drive, Lubbock, Texas 79403 or to Ed Bucy, Right -of - Way Agent, City of Lubbock, P. O. Box 2000, Lubbock, Texas 79457, as the case may be. D. RENT: Three Hundred and 00/100 Dollars ($300.00) per three (3) month period payable in advance during the life of the lease, the first three (3) month payment being due on or before February 14, 2001, and each subsequent lease payment shall be due on or before the first day of each subsequent three (3) month period thereafter. Rent shall be paid to Lessor at address designated by Lessor. 2. Subject to modifications hereinafter appearing, if any, the parties agree as follows: A. COVENANTS OF LESSOR: Lessor hereby covenants that: Lessor has good and merchantable title in fee simple to the premises and improvements; Lessor is and shall be in possession on the date this lease commences; Lessor has good right to make this lease for the full term hereby granted, including any period for which the Lessee has the right to effect the extension hereunder. B. DAMAGE BY ELEMENTS, ETC.: If by fire, lightning, explosion, wind, earthquake, water, ice, hail, snow, termites, settling or impact, the premises are so damaged that their utility for the Lessee's purposes is substantially impaired, Lessor shall have the option to repair such damage. But if Lessor shall not have begun to repair such damage within sixty (60) days after Lessee's written request, Lessee may cancel this lease at any time. If Lessor, however, shall not have begun such repairs within said sixty (60) days, but thereafter in writing shall offer to do so within an equal period, Lessee's privilege of cancellation must be exercised within ten (10) days following such offer or it shall expire, subject to revival if the repairs are not so made. In case of such damage, the rent shall abate in a just proportion to the resulting unfitness of the premises so long as such unfitness shall continue; and if the lease is canceled as aforesaid, the rent shall be payable ratably to the date of cancellation. Lessee's rights to abatement of rent shall not be applicable if such damage is caused by Lessee's negligence. C. MAINTENANCE, ETC.: Dirt will not be stacked on the road area across the property. Lessee shall not permit the existence of any nuisance on the said premises and shall keep and maintain the same in a proper, clean, safe and sanitary condition, free and clear of any explosive, inflammable, or combustible material which would increase or tend to increase the risk of fire or explosion; Lessee shall commit no waste, damage or injury to the premises or any part thereof and shall take all reasonable precautions to prevent others from doing so; Lessee shall keep, observe and comply with all federal, state and municipal regulations, ordinances and laws, and with the regulations of any duly constituted legal authority having jurisdiction over the premises, and at Lessee's sole cost shall make any and all improvements, alterations, repairs and additions and install all appliances required as a result of Lessee's use of said premises by or under any such regulations, ordinances or laws; the Lessee shall, at Lessee's sole cost and expense, keep the premises hereby demised in good condition, and shall make all repairs; renewals and replacements that from time to time may be necessary to keep the premises in good condition and ready and fit for occupancy, and for the operations for which they are intended; and on termination of said leasehold, either by expiration of the terms hereof or by cancellation, Lessee shall surrender said premises in the same condition as when Lessee took possession hereunder, ordinary wear and tear excepted. If Lessee fails to fulfill these obligations, Lessor may do any work required hereunder, and Lessee shall reimburse Lessor for the cost and expense thereof. D. ALTERATION AND RESTORATION BY LESSEE: Lessee shall have the right, after Lessor's prior written approval, at its own expense, to make such alterations, installations or improvements in and upon the same as Lessee may desire. Lessor's approval shall be contingent upon receipt and evaluation of the following: 1) Specifications 2) Contract or estimate of cost 3) Performance bond furnished, or funds placed in a construction escrow account for payment of said contract or estimate Lessee's failure to obtain Lessor's prior written approval shall be an act of default. Lessee shall maintain and repair (at Lessee's expense) all said alterations, installations or improvements. E. TERMINATION: Upon the termination of this lease in any manner herein provided, Lessee shall forthwith surrender to Lessor possession of the premises and shall remove all improvements added by Lessee and restore the premises to the same state which they were in prior to the addition of such improvements, ordinary wear and tear excepted, and in case Lessee shall fail, within thirty (30) days after the date of such termination to make such removal or restoration, then Lessor may, at its election, to be exercised within thirty (30) days thereafter, either take and hold such improvements as its sole property; or remove such improvements and restore the premises for the account of Lessee, and in such latter event Lessee shall, within thirty (30) days after the rendition of a bill therefor, reimburse Lessor for the cost so incurred. If Lessee defaults in any of the covenants and agreements to be performed by Lessee as required herein, Lessor, at Lessor's option, may take and hold such improvements as its sole property, or require removal as provided above. F. INSURANCE: Lessor acknowledges that Lessee is self -insured as evidenced by the certificate attached hereto. G. TAXES: Lessor shall pay all taxes and special assessments levied upon the premises or the use thereof. Cost for said taxes and special assessments shall be the responsibility of Lessee, and Lessee shall reimburse Lessor for said costs upon receipt of invoice from Lessor. H. ASSIGNING, SUBLETTING: Lessee may assign this lease or sublet the premises only with the express written consent of Lessor, which shall not be withheld unreasonably. No such assignment or sublease shall release Lessee from fulfillment of its obligations hereunder. If Lessee assigns or sublets without consent of Lessor, Lessor may terminate this lease immediately. RE-ENTRY UPON DEFAULT: Act of Default. The term "act of default" shall mean and include any one or more of the following events: 1) A petition in bankruptcy, reorganization, composition, arrangement or for the appointment of a receiver is filed by or against Lessee under the federal bankruptcy laws or any other state or federal bankruptcy or insolvency laws or any laws relating to the relief of debtors, which is not discharged within thirty (30) days from the date of filing; or 2) The cessation of business by Lessee as a going concern, or the Lessee commits an act of bankruptcy; or