HomeMy WebLinkAboutResolution - 2023-R0579 - Temporary Lease, DG Properties, Inc, Innovative Healing Center Project - 12/05/2023Resolution No. 2023-R0579
Item No. 5.16
December 5, 2023
RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock is hereby authorized and directed to execute for
and on behalf of the City of Lubbock, a Temporary Lease Agreement by and between the City of
Lubbock and DG Properties, Inc., of Lubbock, Texas, and related documents. 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 December 5, 2023
ATTEST:
Co ney Paz, City Secreta
R�7Z�l�f_ � : I�TI �ZZ��D��
-- -..� - --
Bill � werton, De City Manager
APPROVED AS TO PORM:
Rachael Foster, A, sistant City Attorney
ccdocsII1RES.COLI ID Temporary Office Lcase- DG Properties, Inc.
Resolution No. 2023-R0579
TEMPORARY LEASE AGREEMENT
This Temporary Lease Agreement (the "Lease") is made and entered into this Sth day
of December, 2023 (the "Effective Date"), by and between DG PROPERTIES, INC.
("Landlord"), and CITY OF LUBBOCK, a Texas Home Rule Municipal Corporation
("TenanY').
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"): 23 Briercroft #100, Lubbock, TX 79412, consisting of
approximately 3,250 square feet of cominercial office space (as more particularly identified in
the attached Exhibit "A").
2. Term. The tenu of this Lease ("Tenn") shall commence on December 5, 2023,
("Commencement Date") and shall expire on April 30, 2024 ("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 surrender the Premises to Landlord in the same condition as delivered to
Tenant on the Commencement Date, casualty and ordinary wear and tear excepted.
This Lease may be extended upon the mutual agreement of both Landlord and Tenant for one
additional six (6) month period (the "Option Period"). The Landlord andlor Tenant may elect to
not extend the ternl of this Lease in their sole discretion.
3. Rent. Monthly rent ("Rent") is $3,000.00, due and payable to Landlord on the first (15')
day of each month during the term of this Lease, with the first payment being prorated based on
a 30-day period and due contemporaneously with the execution of this Lease.
All Rent provided for in this Lease shall be paid to Landlord and remitted to the following
address: DG Properties, Inc., 5607 Avenue Q South Dr., Lubbock, TX 79412. Landlord agrees to
provide to Tenant a form W-9, Request for Taxpayer ldentification 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 renY' and
Tenant shall not be required to pay operating costs, insurance, taxes, or any other fees or charges,
however denominated or stated.
In the event this Lease is extended by the mutual agreement of Landlord and Tenant, Tenant
shall continue to pay Rent in the amount as stated above to Landlord on the first (1 S') day of each
month for the lease of the Premises during the Option Period.
4. Security Deposit. Upon execution of this Lease, Tenant shall deposit with Landlord an
amount equal to one full month's rent as a Security Deposit for the performance of Tenant's
obligations during the term hereof. Within thirty (30) days after Tenant surrenders the Premises,
Landlord will refund the Security Deposit, less any amounts applied toward itemized deductions,
if any, owed by Tenant.
5. Personal Proqerty. Tenant shall furnish at its sole cost and expense all personal property
to be used by Tenant on the Premises.
6. Permitted Use. Tenant shall use the Premises as temporary office spaces for City of
Lubbock Health Department and related uses.
7. Utilities. Landlord agrees to provide normal utility service connections and service to
the building, including water, sewer, electricity, and gas. Tenant shall be billed monthly by the
Landlord for actual utility charges for the Premises, off-set by the amount of the other tenant's
historical billed utility usage for that particular billing month (attached as Exhibit "B"). Utility
charges shall be paid by the Tenant within thirty (30) days of receiving the bill for the charges
from the Landlord.
Tenant agrees to place all utility accounts for utility services not provided by Landlord in its
name from Lease commencement to expiration, with payment made directly by Tenant to the
utility provider.
8. 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 ftom the operation of Tenant's business at the
Premises.
9. Sublettin�. Tenant shall not sublet the whole or any part of the Premises without first
obtaining the prior written consent of Landlord.
10. 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 in a clean and orderly
condition.
11. 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.
12. Indemnification. 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.
13. 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.
14. Landlord's Insurance. Landlord shall carry commercial property insurance, including
special fornl 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 saine
amounts required of Tenant.
15. 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.
16. Casualtv. 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 tenninate, 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.
17. Quiet Enjoyment. Landlord represents and warrants that Landlord has the right, power
and lawful authority to enter into this Lease for the full Tenn hereof. Tenant, upon paying the
Rent required under this Lease, shall peaceably and quietly hold and enjoy the Premises during
the full Ternl hereof.
18. Si na e. 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, 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.
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.
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.
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20. Default and Termination. In the event Tenant shall be in default in the payment of any
installment of Rent herein reserved more than fve (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 ffteen (15) days prior written notice of such non-perfornlance, 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 perfonnance of any of the ternis, covenants, conditions
or provisions herein contained binding upon Landlord after Tenant has given Landlord fifteen
(15) days prior written notice of such non-perfonnance, Tenant shall have the right (in addition
to all other rights and remedies provided by law) to terminate this Lease.
Notwithstanding the above, Tenant and Landlord each retain the right, at its election, to
terniinate this Lease by giving the other Party thirty (30) days prior written notice of the
terniination.
21. Notices. Except as otherwise specifically provided herein, any notice required or
pennitted under this Lease shall be in writing and shall be deemed to have been duly given and
delivered (a) 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
Attn: City Secretary
Citizens Tower, 10"' Floor
P.O. Box 2000
Lubbock, TX 79457
To Landlord: DG Properties, Inc.
5607 Avenue Q South Dr.
Lubbock, Texas 79412
22. Attorne_ys' 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 Fee. Landlord shall be responsible for any broker's fee due or payable as a
result of this Lease and shall hold Tenant harmless from any claims therefore.
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
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modifications of this Lease will be binding upon Landlord or Tenant unless made in writing and
signed by each party. The tenns, covenants and conditions contained herein shall inure to the
benefit of, and be binding upon, Landlord and Tenant, and their respective heirs, successors and
ass�gns.
25. Severability. If any terni 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 ternl 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 pennitted by law.
26. Governing Law. This Lease shall be construed under and in accordance with the laws of
the State of Texas.
27. Force Majeure. 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 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 sole judgment, that it is unable to operate as
contemplated herein because of Force Majeure, 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 terniination.
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 instruinent. A signed copy of this Lease transinitted by facsimile,
email or other means of electronic transinission 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.)
�
IN WITNESS WHEREOF, the parties hereto have executed this Lease the day and year first
above written.
LAI`
DG
By:
Nan
Title: ��1.�iY1 � l
Date: ��
TENANT:
CITY OF LUBBOCK
By: -
Tray Pay , Mayor
ATTEST:
Courtney Paz, City Se tary
APPROVED AS TO CONTENT:
/ /'.,/� lI J � �
� ����- � ��i.� .�-
APPROVED AS TO FORM:
Rachael Foster, ss t nt City Attorney
�
Exhibit "A" — Premises Site Plan
BREAK ROOM
17'8' X 11'10'
STORAGE
11'B' X 5'7'
OFFICE
74'6" X 11'8'
MECH ROOM
11'S' X 10'4'
ENTRANCE
18'10' X 10'4"
w ic
c� v
a� x
O
� �
OFFICE
19' 10' X 11' 10"
STORAGE
10' X 4'7'
OFFICE
19'1' X 15'1"
CUBICAL . CUBICAL CUBICA .I ��1�`
11'9' X 8'S' 8'3" X 6'0 8'3' X 8'9'
b
�� CUBICAL CUBICAL
CUBICAL
11'9' X 8'11"
� 8'3' X6'1' 8�3� x8��" OFFICE
RESTROOM 24'8' X 15'1'
CUBICAL i CUBICAL CUBICAL
10'8" X 8'8' , 10'8' X 8'8' 10'8' X 8'8'
RESTROOM
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Exhibit "B" — Existing Tenant's Historical Utility Usage
10/26/2022 Lubbock Power & Light $ 583.66
11/29/2022 Lubbock Power & Light � 712.21
1/3/2023 Lubbock Power & Light _ _ _$ _ 546.00
1/25/2023 Lubbotk Power & _Light _ $ �_ 656.59
2/24/2023 Lubbock Power & Light $ 492•97
4/5/2023 Lubbock Power & light $ 505.06 ,
S/4/2023 f� Lubbock Power & Light _$ __ 486.85 ;
5/30/2023 Lubbotk Power & Light $ 855.72
6/29/2023 Lubbock Power & Light ,�_ $ _ 1,061.70 �
��25�2p23 Lubbock Power & Light $ 1,251.46
8/23/2023 Lubbock Power & light $ 1,062.39
g�Zg/2pZ3 Lubbock Power & Light $ 915.50
$ 9,13U.11
10/2G/2022
11/21/2022
12/20/2022
1/23/2023
2/24/2023 �
�----�__..
,3/23/2023
4/21/2023
5/30/2023
6/29/2023 �
7/25/2023
8/23/2023
9/28/2023 � � �_
Atmos Energy __ _ S _ 98•36 �
..._._�- - -
Atmos Energy � _ $ 131.13
Atmos Energy _S _ 282•89
Atmos Energy � , $ -� -324.98 ,
Atmos Energy $ _ _ 243.04
Atmos Energy $ _ 155.87
Atmos Energy _� S $?�21 �
Atmos Energy $ _ _ _ _ _ 84�97 �
Atmos Energy � � _ $_ __ 184.41 �
Atmos Energy $ _ 183.64
Atmos Energy $ _ _ 7fi.84
Atmos Energy $ _ _ _76.25
Atmos Energy � $ $$•25
2,Ui7.84
8