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HomeMy WebLinkAboutResolution - 2007-R0393 - Lease Agreement - Lubbock Mental Health Mental Retardation Center - GWCC - 08/23/2007RESOLUTION Resolution No.2007-R0393 August 23, 2007 Item No.5.30 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THATthe CityCouncilof the Cityof Lubbock herebyauthorizesanddirectsthe Mayorof the Cityof Lubbock to executea Lease Agreement by andbetweenthe Cityof Lubbock and Lubbock Mental Health Mental Retardation Center for lease of the George Woods Community Center at 517 North Zenith Avenue for recreational programs for youth and other citizens, which Lease Agreement and any associated documents, are attached hereto and made a part of this Resolution for all intents and purposes. Passed by the City Council this 23rd day of August , 2007. >^^^^- DAVID A.MILLER,MAYOR ATTEST: Rebecca Garza,City Secretary Randy Truesdell Community Services Director APPROVED AS TO FORM: /ffll/am&j^^-Don Vandiver,Attorney of Counsel DDres/MarianMossFnlerpriscs07C"onRes August 13, 2007 Resolution No. 2007-RO393 LEASE AGREEMENT This Lease is entered into on this 23rdday of August 2007, between THE CITY OF LUBBOCK, a Texas home rule municipal corporation ("Landlord"), and LUBBOCK REGIONAL MENTAL HEALTH MENTAL RETARDATION CENTER, a community mental health and mental retardation center and a governmental entity under the provisions of Sec. 534.001, Texas Health & Safety Code ("Tenant'). ARTICLE 1. DEMISE OF LEASED PREMISES Section 1.01. Leased Premises. In consideration of the mutual covenants and agreements of this lease, and other good and valuable consideration, Landlord demises and leases to Tenant, and Tenant leases from Landlord, the premises situated at 517 North Zenith Avenue in Lubbock, Lubbock County, Texas, known as the George Woods Community Center and which is further described on Exhibit A attached to this lease, and made a part of this lease for all purposes (collectively referred to as "the premises" or "the leased premises" in this lease). Tenant is to have and to hold the premises, together with all rights, privileges, easements, appurtenances, and immunities belonging to or in any way appertaining to them, including but not limited to any easements, rights, title, and privileges of Landlord, existing now or at any time during the lease term, in, to, or under adjacent streets, sidewalks, alleys, party walls, and property contiguous to the premises and reversions that may later accrue to Landlord as owner of the premises by reason of the closing of any street, sidewalk, or alley. ARTICLE 2. LEASE TERM Section 2.01. Tenn. The term of this Lease is one (1) year (the "Primary Term") beginning on the date of execution of this Lease by the Landlord, unless terminating sooner as provided in this lease. This Lease may be terminated by either party upon sixty (60) days written notice to the other party. This Lease may be extended upon the mutual agreement of both Landlord and Tenant for up to four additional one (1) year periods (the "Option Period"). The Landlord and/or Tenant may elect to not extend the term of this Lease in their sole discretion. Section 2.02. Termination. If not otherwise terminated, this Lease will terminate without further notice when the term specified in § 2.01 expires, and any holding over by Tenant after that term expires, will not constitute a renewal of the lease or give Tenant any rights under the lease in or to the premises. Section 2.03. Holdover, If Tenant holds over and continues in possession of the premises after the lease term (or any extension) expires, Tenant shall be considered to be occupying the premises on an at will tenancy, subject to all the terms of this Lease. ARTICLE 3. RENT Section 3.01. Rent. Tenant shall pay Landlord One Dollars ($1.00) per year and other good and valuable consideration during the Primary Term of this Lease. In the event this Lease is extended by the agreement of Landlord and Tenant, Tenant shall pay Landlord One Dollars ($1.00) per year during the Option Period. Section 3.02. Time of Payment. Tenant shall pay all rent due hereof under this article on an annual basis, beginning on the date of execution of this Lease by the Landlord, and thereafter on each annual anniversary date thereof during the term of the lease. In the event this lease is extended by the agreement of Landlord and Tenant, Tenant shall pay all rent due for the Option Period on an annual basis, beginning on the twentieth (20`h) anniversary date hereof, and on each annual anniversary date there. Payments must be in lawful money of the United States. Section 3.03. Interest. Rent installments unpaid for thirty (30) days shall bear interest at the rate of twelve percent (12%) annually, beginning on the day after each such installment was due and continuing until the installment is paid. Nothing in this lease shall be construed as providing for Landlord receiving, collecting and/or demanding a rate of interest greater than provided for under Texas law. In the event Landlord receives interest in excess of the highest lawful rate, such funds shall be applied to the next year's rental payment, or in the event no further rental payments are due, refunded to Tenant. ARTICLE 4. TAXES Section 4.01. Payment by Tenant. In addition to the rent specified in Article 3, Tenant will pay and discharge all taxes, general and special assessments, and other charges of any kind levied on or assessed against the premises and all interests in the premises and all improvements and other property on them during the lease term, whether belonging to Landlord or to Tenant. Tenant will pay all the taxes, charges, and assessments directly to the public officer charged with their collection not fewer than fifteen (15) days before they become delinquent, and Tenant will indemnify Landlord and hold it harmless from all such taxes, charges, and assessments. Tenant may, in good faith at its own expense contest any such taxes, charges, and assessments and must pay the contested amount, plus any penalties and interest imposed, if and when finally determined to be due. Section 4.02. Payment by Landlord. At any time that the payment of any item of taxes, special assessments, or governmental charges that Tenant must pay under § 4.01 remains unpaid and uncontested later than fifteen (15) days before it becomes delinquent, Landlord may give written notice to Tenant of its default under § 4.01, specifying the default. If Tenant continues to fail to pay the taxes, special assessments, or governmental charges, or to contest them in good faith within ten (10) days after the written notice, Landlord may pay the items specified in the notice, and Tenant will, on demand, 2 reimburse Landlord any amount paid or expended by Landlord for this purpose, with interest on the amount at the rate of twelve percent (12%) annually from the date of Landlord's payment until reimbursement by Tenant. ARTICLE 5. UTILITIES Section 5.01. Utilities. Tenant shall pay or cause to be paid all charges for water, heat, gas, electricity, sewers, and all other utilities used on the premises throughout the lease term, including any connection fees. ARTICLE 6. USE OF PREMISES Section 6.01. Use of Premises. a. Tenant may use the premises for the purpose of operating parks and recreation related programs of the Tenant, and for no other purpose without the written consent of Landlord. Landlord will not unreasonably withhold consent to a change of use so long as it is consistent with parks and recreation purposes. b. Under no circumstances during the term of this lease will Tenant use or cause to be used in the business operated on the premises any hazardous or toxic substances or materials, including without limitation hazardous substances, as defined in the Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C.S. §9601 (14)) and/or asbestos, in any form, or store or dispose of any such substances or materials on the premises. Section 6.02. Illegal Use. Tenant may not use all or any part of the premises or any building situated on them for any use or purpose that violates any valid and applicable law, regulation, or ordinance of the United States, the State of Texas, the County of Lubbock, the City of Lubbock, or other lawful authority with jurisdiction over the premises. Section 6.03. Defects. Tenant shall inspect, or as frequent a basis as necessary, the premises to identify any and all precise defects on the premises and shall promptly remedy any and all precise defects upon the premises. ARTICLE 7. CONSTRUCTION BY TENANT Section 7.01. General Conditions. Tenant may not, absent the prior written consent of Landlord in principle to the proposed activities, erect, maintain, alter, remodel, reconstruct, rebuild, replace, and remove buildings and other improvements on the premises, and correct and change the contour of the premises. In the event Landlord shall consent in principle to the proposed activities of Tenant, such activities of Tenant are subject to the following: a. Tenant bears the cost of any such work. b. The premises must at all times be kept free of mechanics' and materialmen's liens. C. Landlord must be notified of the time for beginning and the general nature of any such work, other than routine maintenance of existing buildings or improvements, at the time the work begins. d. The conditions of § 7.02 concerning Landlord's approving plans must be followed. Section 7.02. Approval of Plans. In the event Tenant shall obtain the consent in principle of Landlord to the proposed activities of Tenant, the following rules govern the approval of construction, additions, and alterations of buildings or other improvements on the premises: a. Written Approval Required. No existing building or improvement may be added to or altered and no building or other improvement may be constructed on the premises (collectively referred to herein as, "Construction") unless the plans, specifications, and proposed location of same has received Landlord's written approval and the Construction complies with the approved plans, specifications, and proposed location. b. Submission of Plans. Tenant must, at its own expense, engage a licensed architect or engineer to prepare plans and specifications for such construction. Tenant must submit two (2) copies of detailed working drawings, plans, and specifications for such Construction. C. Landlord's Approval. Landlord will promptly review and approve all plans submitted under subparagraph b above or note in writing any required changes or corrections that must be made to the plans. Any required changes or corrections must be made, and the plans resubmitted to Landlord, within thirty (30) days after the corrections or changes have been noted. d. Exception to Landlord's Approval. The following items do not require submission to, and approval by, Landlord, but a copy of the plans and specifications for such Construction must be furnished to Landlord. i. Minor repairs and alterations necessary to maintain existing structures and improvements in a useful state of repair and operation. ii. Changes and alterations required by an authorized public official with authority or jurisdiction over the buildings or improvements, to comply with legal requirements. n e. Effect of Approval. Landlord's approval of any plans and specifications applies only to the conformity of the plans and specifications to the general architectural plan for the premises. Landlord's approval does not constitute approval of the architectural or engineering design, and Landlord, by approving the plans and specifications, assumes no liability or responsibility for the architectural or engineering design or for any defect in any building or improvement constructed from the plans or specifications. Section 7.05. Ownership. Any buildings, improvements, additions, alterations, and fixtures (except furniture and trade fixtures) constructed, placed, or maintained on any part of the leased premises during the lease term are considered part of the real property of the premises and must remain on the premises and become Landlord's property when the lease terminates. Section 7.06. Right to Remove Improvements. Tenant may, prior to the termination or expiration of this Lease, remove any furniture, machinery, equipment, or other trade fixtures owned or placed by Tenant, in, under, or on the premises, or acquired by Tenant, whether before or during the lease term. Before the lease terminates, Tenant must repair any damage to any buildings or improvements on the premises resulting from the removal. Any such items not removed by the lease termination date will become Landlord's property on that date. ARTICLE 8. ENCUMBRANCE OF LEASEHOLD ESTATE Section 8.01. No Encumbrance. Tenant shall not encumber the leasehold interest, by deed of trust, mortgage, or other security instrument, without obtaining Landlord's consent. In the event Landlord shall so consent, such encumbrance shall not, in any event, constitute a lien on Landlord's fee title. The indebtedness secured by the encumbrance will at all times be and remain inferior and subordinate to all the conditions, covenants, and obligations of this lease and to all Landlord's rights under this lease. ARTICLE 9. REPAIRS, MAINTENANCE, AND RESTORATION Section 9.01. Duty to Maintain and Repair. At all times during the lease term, Tenant shall keep and maintain, or cause to be kept and maintained, all buildings and improvements erected on the premises in a good state of appearance and repair (except for reasonable wear and tear) at Tenant's own expense. Section 9.02. Damage or Destruction. If any building or improvement located and/or constructed on the premises is damaged or destroyed by fire or any other casualty, regardless of the extent of the damage or destruction, Tenant must, within six (6) months from the date of the damage or destruction, begin to repair, reconstruct, or replace the damaged or destroyed building or improvement and pursue the repair, reconstruction, or replacement with reasonable diligence so as to restore the building to substantially the condition it was in before the casualty. But if beginning or completing this restoration is prevented or delayed by war, civil commotion, acts of God, strikes, governmental restrictions or regulations, or interferences, fire or other casualty, or any other reason beyond Tenant's control, whether similar to any of those enumerated or not, the time foi beginning or completing the restoration (or both) will automatically be extended for the period of each such delay. During the period from the date at such casualty until the premises are repaired, Tenant's obligation to pay rent hereunder, shall abate. The abatement shall be in the proportion that the destroyed or untenantable portion of the premises bears to the total leased premises. ARTICLE 10. MECHANICS' LIENS Section 10.01. Mechanic's Liens. Tenant shall not cause or permit any mechanics' liens or other liens to be filed against the fee of the premises or against Tenant's leasehold interest in the land or any buildings or improvements on the premises by reason of any work, labor, services, or materials supplied or claimed to have been supplied to Tenant or anyone holding the premises or any part of them through or under Tenant. If such a mechanic's lien or materialman's lien is recorded against the premises or any buildings or improvements on them, Tenant must either cause it to be removed or, if Tenant in good faith wishes to contest the lien, take timely action to do so, at Tenant's sole expense. If Tenant contests the lien, Tenant will indemnify Landlord and hold it harmless from all liability for damages occasioned by the lien or the lien contest and will, in the event of a judgment of foreclosure on the lien, cause the lien to be discharged and removed before the judgment is executed. FWWW OI K4161NIETAMMiWSM Section 11.01. Taking. If the premises or any part of them are taken for public or quasi -public purposes by condemnation as a result of any action or proceeding in eminent domain, or are transferred in lieu of condemnation to any authority entitled to exercise the power of eminent domain, this article governs Landlord's and Tenant's interests in the award or consideration for the transfer and the effect of the taking or transfer on this lease. Section 11.02. Total Taking. If the entire premises are taken or so transferred as described in § 11.01, this lease and all of the rights, titles, and interests under it will cease on the date that title to the premises or part of them vests in the condemning authority, and the proceeds of the condemnation will be the property of Landlord. Section 11.03. Partial Taking. If only part of the premises is taken or transferred as described in § 11.01, this lease will terminate if, in Landlord's opinion, the remainder of the premises is in such a location, or is in such form, shape, or reduced size, that Tenant's business cannot be effectively and practicably operated on the remaining premises. In that event, this lease and all rights, title, and interest under it will cease on the date that title to the portion of the premises taken or transferred vests in the condemning authority. The proceeds of the condemnation will be the property of Landlord. Section 11.04. Voluntary Conveyance. Nothing in this article prohibits Landlord from voluntarily conveying all or part of the premises to a public utility, agency, or authority under threat of a taking under the power of eminent domain. Any such voluntary conveyance will be treated as a taking within the meaning of this article. ARTICLE 12. INSURANCE AND INDEMNIFICATION Section 12.01 Indemnity and Release. THE TENANT SHALL INDEMNIFY AND HOLD HARMLESS, TO THE EXTENT PERMITTED BY LAW, THE CITY, AND CITY'S RESPECTIVE OFFICERS, EMPLOYEES, ELECTED OFFICIALS AND AGENTS, FROM AND AGAINST ANY AND ALL LOSSES, DAMAGES, CLAIMS OR LIABILITIES, OF ANY KIND OR NATURE, WHICH ARISE DIRECTLY OR INDIRECTLY, OR ARE RELATED TO, IN ANY WAY, MANNER OR FORM, THE ACTIVITIES CONTEMPLATED HEREUNDER, AND ARE CAUSED SOLELY BY THE ACT, OMISSION AND/OR NEGLIGENCE OF THE TENANT, THE TENANT'S RESPECTIVE OFFICERS, EMPLOYEES, OFFICIALS AND AGENTS, AND TO WHICH SOVEREIGN IMMUNITY HAS BEEN WAIVED PURSUANT TO THE TEXAS TORT CLAIMS ACT AND OTHER LEGISLATION AND WHICH IS COMMERCIALLY INSURABLE BY THE TENANT. THE TENANT SHALL NOT BE BOUND BY ANY NEGOTIATIONS OR SETTLEMENTS REACHED BETWEEN THE CITY AND OTHER PARTIES WITHOUT THE EXPRESS WRITTEN CONSENT OF THE TENANT. THIS INDEMNITY AGREEMENT IS INTENDED TO INCLUDE ANY CLAIMS AND DAMAGES BASED ON THE SOLE NEGLIGENCE OF THE TENANT AND THE EXPRESS PURPOSE OF THE LANGUAGE CONTAINED WITHIN THIS INDEMNITY AGREEMENT IS TO NEGATE APPLICATION OF THE EXPRESS NEGLIGENCE RULE AS THAT RULE IS RECOGNIZED IN THE STATE OF TEXAS. THE INDEMNITY PROVIDED HEREIN SHALL SURVIVE THE TERMINATION OF THIS AGREEMENT. Section 12.02. Insurance. Tenant shall procure and carry, at its sole cost and expense through the life of this Agreement, insurance protection as hereinafter specified, in form and substance satisfactory to the Landlord, carried with an insurance company authorized to transact business in the State of Texas, covering all foreseeable aspects and operations in connection with this lease, including, but not limited to, all aspects, operations and/or occurrences to which Tenant has indemnified the Landlord, as provided in Section 12.01 hereof. A Certificate of Insurance specifying each and all coverages, and a copy of such policy shall be submitted to the Landlord prior to the execution of this Agreement, except as it relates to the required Building Risk Insurance, of which said Certificate shall be submitted no later than fifteen (15) days prior to the commencement of construction activities. Landlord shall cause each required policy to require the insurer to (i) give notice to the City, as specified herein, of termination of any such policy sixty (60) days before such termination is to be effective; and (ii) contain a waiver of any and all of the insurer's rights to subrogation that any such insurer or insurers may acquire by virtue of payment of any loss under such insurance. Landlord shall provide to the City 7 proof of the below -described insurance on or before fourteen (14) days prior to the expiration date of each expiring policy. A. Comprehensive General Liability Insurance. Tenant shall have comprehensive general liability insurance, with limits of $1,000,000.00 combined single limit in the aggregate and per occurrence. The Landlord shall be named as an additional insured in such policy. B. Owner's Protective or Contingent Public Liability Insurance and Property Damage Liability Insurance. Tenant and/or its contractor(s) shall obtain an Owner's Protective or Contingent Public Liability Insurance policy in the amount of, for bodily injuries, including accidental death and/or property damage, $1,000,000.00 combined single limit. This insurance coverage shall include coverage against casualty or damage, including, but not limited to, damage caused by fire and/or vandalism, to any and all other buildings and/or improvements located on the leased premises, and shall name the Landlord as an additional insured. C. Worker's Compensation Insurance. In the event Tenant shall employ persons upon the leased premises or shall perform, or have performed, construction activities on the leased premises, Tenant and/or all contractors performing construction activities upon the leased premises shall maintain throughout the term of this lease and/or the construction, as is applicable, worker's compensation insurance coverage in accordance with the statutory requirements of the State of Texas. D. Builder's Risk Insurance. In the event Tenant shall perform, or have performed, construction activities on the leased premises, the Tenant and/or its contractor(s) shall have Builder's Risk Insurance in the amount of one hundred percent (100%) of the prices of each contract relating to such construction activities, and the insurance shall name the Landlord as an additional insured. ARTICLE 13. ASSIGNMENT AND SUBLEASE Section 13.01. No Assignment. Tenant shall not sell or assign its leasehold estate in its entirety or any portion of it, nor may it sublet the premises or any portion of them or any portion of any building or other improvement erected on the premises, without the prior written consent of Landlord. ARTICLE 14. DEFAULT AND REMEDIES Section 14.01. Termination on Default. If Tenant defaults in performing any covenant or term of this lease, and does not correct the default within fifteen (15) days after receipt of written notice from Landlord to Tenant, Landlord may declare this lease, and all rights and interests created by it, terminated. If Landlord elects to terminate, this lease will cease as if the day of Landlord's election were the day originally fixed in the lease for its expiration. Landlord or its agent or attorney may resume possession of the premises and relet them for the remainder of the term at the best rent obtainable for the account of Tenant, who must make good any deficiency. Tenant and Landlord agree that, for the purpose of posting the notice required by Property Code Section 93.002(f), the "front door" of the lease premises is 517 North Zenith Avenue in Lubbock, Lubbock County, Texas. Section 14.02. Remedies Cumulative. Any termination of this lease as provided in this article shall not relieve Tenant from paying any sum or sums due and payable to Landlord under the lease at the time of termination, or any claim for damages then or previously accruing against Tenant under this lease. Further, in the event of termination, Tenant shall have no rights to any rents paid in advance, and all of said rents shall be and remain the property of Landlord. Any such termination shall not prevent Landlord from enforcing the payment of any such sum or sums or claim for damages by any remedy provided for by law, or from recovering damages from Tenant for any default under the lease. All Landlord's rights, options, and remedies under this lease will be construed to be cumulative, and no one of them is exclusive of the other. Landlord may pursue any or all such remedies or any other remedy or relief provided by law, whether or not stated in this lease. No waiver by Landlord of a breach of any of the covenants or conditions of this lease may be construed a waiver of any succeeding or preceding breach of the same or any other covenant or condition of this lease. ARTICLE 15. REPRESENTATIONS, WARRANTIES AND GENERAL PROTECTIVE PROVISIONS Section 15.01. Authority of Tenant. Tenant has the authority to execute and perform all obligations under this Lease and the execution hereof has been duly authorized by all necessary actions of Tenant. Tenant shall, in its occupation and/or operation of the leased premises, comply with all applicable federal, state and local statutues, rules, regulations and ordinances, including without limitation rules and regulations of the Housing and Urban Development Agency relating, in any way, manner or form, to the Tenant and/or its occupation and/or operation of the leased premises (collectively, the "Applicable Law"). Tenant represents and warrants that it has complied with all Applicable Law in entering into this Lease. Section 15.02. Right of Entrv. Tenant must permit Landlord or its agents, representatives, or employees to enter the premises for the purposes of inspection; determining whether Tenant is complying with this lease; maintaining, repairing, or W altering the premises; or showing the premises to prospective tenants, purchasers, mortgagees, or beneficiaries under trust deeds. Section 15.03. No Partnership. The relationship between Landlord and Tenant is at all times solely that of landlord and tenant and may not be deemed a partnership or a joint venture. Section 15.04. Force Majeure. If curing any default (other than failure to pay rent, insurance premiums, or ad valorem taxes) or performing any other covenant or term is delayed by reason of war, civil commotion, act of God, governmental restrictions, regulations, or interference, fire or other casualty, or any other circumstances beyond Tenant's control or that of the party obligated or permitted under this lease to do or perform the term or covenant, regardless of whether the circumstance is similar to any of those enumerated or not, each party so delayed is excused from performance during the delay period. Section 15.05. Bankruptcy. Bankruptcy, insolvency, assignment for the benefit of creditors, or the appointment of a receiver will not affect this lease as long as Tenant and Landlord or their respective successors or legal representatives continue to perform all covenants of this lease. Section 15.06. No Waiver. No waiver by either party of any default or breach of any covenant or term of this lease may be treated as a waiver of any subsequent default or breach of the same or any other covenant or term of this lease. Section 15.07. Release of Landlord. If Landlord sells or transfers all or part of the premises and as a part of the transaction assigns its interest as Landlord in this lease, then as of the effective date of the sale, assignment, or transfer, Landlord will have no liability under this lease to Tenant, whenever occurring or accruing. Section 15.08. Security. Tenant shall take any and all actions necessary to protect the leased premises and all persons who enter upon same. Tenant shall inspect, on as frequent a basis as necessary, the leased premises to identify and remedy all premise defects, upon or affecting the leased premises. ARTICLE 16. MISCELLANEOUS Section 16.01. Delivery of Rents and Notices. All rents or other sums, notices, demands, or requests from one party to another may be personally delivered or sent by mail, certified or registered, postage prepaid, to the addresses stated in this section and are considered to have been given at the time of personal delivery or of mailing. 10 Landlord: Scott Snider Assistant City Manager P. O. Box 2000 Lubbock, Texas 79457 Telephone: (806) 775-2235 Facsimile: (806) 775-2051 Tenant: Beth Moore Lubbock Regional MHMR P.O. Box 2828 Lubbock, Texas 79408-2828 Telephone: (806) 766-0310 Facsimile: (806) 744-9580 Section 16.02. Multiple Parties. If this lease names more than one Landlord or Tenant, service of any notice on any one Tenant or Landlord is considered service on all Tenants or Landlords, respectively. Section 16.03. Parties Bound. This agreement binds, and inures to the benefit of, the parties to the lease and their respective heirs, executors, administrators, legal representatives, successors, and assigns Section 16.04. Applicable Law. This agreement is to be construed under Texas law, and all obligations of the parties created by this lease are performable in Lubbock County, Texas. Section 16.05. Construction. If any one or more of the provisions contained in this lease are for any reason held to be invalid, illegal, or unenforceable in any respect, the invalidity, illegality, or unenforceability will not affect any other provision of the lease, which will be construed as if it had not included the invalid, illegal, or unenforceable provision. Section 16.06. Prior Agreements. This lease constitutes the parties' sole agreement and supersedes any prior understandings or written or oral agreements between the parties with respect to the subject matter. Section 16.07. Amendment. No amendment, modification, or alteration of this lease is binding unless in writing, dated subsequent to the date of this lease, and duly executed by the parties. Section 16.08. Rights and Remedies Cumulative. The rights and remedies provided by this lease agreement are cumulative, and either party's using any right or remedy will not preclude or waive its right to use any other remedy. The rights and remedies are given in addition to any other rights the parties may have by law, statute, ordinance, or otherwise. Section 16.09. Attorney's Fees. If, as a result of either party's breaching this agreement, the other party employs an attorney to enforce its rights under this lease, then the breaching or defaulting party will pay the other party the reasonable attorney's fees and costs incurred to enforce the lease. 11 Section 16.10. Time of Essence. Time is of the essence of this agreement. THIS LEASE has been executed by the parties on the date and year first above written. TENANT: DAVID A. MILLER DANETTE CASTLE, 0-1 d MAYOR CHIEF EXECUTIVE OFFICER ATTEST: Q�, APPR } E�D:: o gffie. , `J i (�7:7 BY: Reb cca Garza, City Secretaz Cindy Lucas, Chief Administrative Officer f tj� TO BAP Y' 17 ;dell Beth Moore, Chief Finan1 Officer Services Director APPROVED AST ORM: Dona d G. Vandiver, Attorney of Counsel DDcon/MHMRLease07con I August 14, 2007 12