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HomeMy WebLinkAboutResolution - 2017-R0117 - B.R. Griffin Oil & Gas - 03/23/2017Resolution No.2017-R0117 Item No.6.1.1 March 23,2017 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 Commercial Lease Agreement for the use of the property and structures,by and between the City of Lubbock and B.R.Griffin Oil & Gas Ltd., and related documents.Said 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 bytheCity Council on March 23.2017 • DANIEL M.POPE,MAYOR ATTEST: uUSU^LA^ ca Garza,City Secret APPROVED AS TO CONTENT: W.Jarrett Atkinson,City Manager APPROVED AS TO FORM: vw:ccdocs/RES.Lease Agrmt-BR Griffin Oil & Gas Ltd March 6,2017 Resolution No. 2017-RO 117 COMMERCIAL LEASE This lease agreement is made and entered into by and between BR GRIFFIN OIL & GAS LTD (landlord) and CITY OF LUBBOCK (Tenant). Landlord hereby leases to Tenant and Tenant hereby leases from Landlord that certain property with the improvements thereon, hereinafter called the "leased premises" or "premises", described as LOT 3, RIP ADDITION, City of Lubbock, Lubbock, County, Texas. The primary term of this lease shall be twelve (24) months commencing on the 111 day of March, 2017, and ending at 11:59 p.m. on the 28tt' day of February, 2019, upon the following terms, conditions and covenants: 1. TAXES. Landlord shall be responsible for all property taxes and related assessments. 2 UTILITIES. Tenant shall pay all charges for utility services to the leased premises. 3. RENEWALS. This lease shall be automatically renewable at the end of the primary term for five (5) consecutive one year terms upon the same conditions and covenants contained herein unless either party shall give written notice of a desire to terminate the lease at least thirty (30) days prior to the expiration of the primary term or any subsequent renewal period. 4. RENT. Tenant agrees to and shall pay Landlord at Lubbock County, Texas or at such other place Landlord shall designate from time to time in writing, as rent for the leased premises, the total sum of $18,000.00 payable without demand in equal monthly payments of $1,500.00, each in advance on or before the 151 day of each month, commencing on March 1, 2017 and continuing thereafter until the total sum shall be paid. 5. USE. Tenant shall use the leased premises for the following purpose: Garage and Storage. 6. INSURANCE. Landlord shall pay for fire and extended coverage insurance on the buildings and other improvements on the leased premises in an amount not less than (90%) of the fair market value of such buildings and improvements. 7. CONDITION OF PREMISES. Upon execution of this lease, Landlord agrees to clean the leased premises to the satisfaction of Tenant within a reasonable lime thereafter. Tenant has examined and accepts the leased premises as suitable for the purposes for which the same are leased. 8. MAINTENANCE AND REPAIRS. Tenant shall commit no act of waste and shall take good care of the premises and fixtures and appurtenances on it. Landlord shall not be required to make repairs occasioned by the act or negligence of the Tenant, its employees, subtenants, licensees and concessionaires. At the termination of this lease, Tenant shall deliver the leased premises in good order and condition, normal wear and tear excepted. Normal wear and tear means deterioration, which occurs without negligence, carelessness, accident or abuse. 9. ALTERATIONS. Alterations, additions and improvements may only be made with the prior written consent of Landlord, which consent shall not be unreasonably withheld. No cooling tower, equipment or structure of any kind shall be placed on the roof or elsewhere on the leased premises by Tenant without prior written permission of Landlord. If such permission is granted, such work or installation shall be done at Tenant's expense and in such a manner that the roof shall not be damaged thereby. If it becomes necessary to remove such cooling tower, equipment or structure temporarily, so that repairs to the roof can be made, Tenant shall promptly remove and reinstall the cooling tower, equipment or structure at Tenant's expense and repair at Tenant's expense any damage resulting from such removal or reinstallation. Upon termination of this lease, Tenant shall promptly repair at its expense any damages resulting from such removal. At the termination of this lease, Tenant shall deliver the leased premises in good order and condition, reasonable wear and tear excepted. Any damage caused by the installation or removal of trade fixtures shall be repaired at Tenant's expense prior to the expiration of the lease term. All alterations, improvements, additions, and repairs made by Tenant shall be made in a good and workmanlike manner. 10. COMPLIANCE WITH LAWS AND REGULATIONS. Tenant shall, at its own expense, comply with all laws, orders and requirements of all governmental entities with reference to the use and occupancy of the leased premises. Tenant and Tenant's agents, employees and invitees shall fully comply with any rules and regulations governing the use of the buildings or other improvements on the leased premises as required by Landlord. 11.ASSIGMENT AND SUBLETTING. Tenant shall not assign this lease nor sublet the leased premises or any interest therein without first obtaining the written consent of the Landlord. An assignment or subletting without the written consent of the Landlord shall be void and shall, at the option of Landlord, terminate this lease; however, Landlord's consent to an assignment or subletting by Tenant of all or part of the leased premises shall not unreasonably be withheld. 12. DESTRUCTION. In the event the leased premises is partially damaged or destroyed or rendered partially unfit for occupancy by fire or other casualty, Tenant shall give immediate notice to Landlord. Landlord may repair the damage and restore the leased premises to substantially the same condition as immediately prior to the occurrence of the casualty. Such repairs shall be made at Landlord's expense unless due to Tenant's negligence. Landlord shall allow Tenant a fair reduction of rent during the time the leased premises are partially unfit for occupancy. If the leased premises are totally destroyed or deemed by the Landlord to be rendered unfit for occupancy by fire or other casualty, or if Landlord shall decide not to repair or rebuild, this lease shall terminate and the rent shall be paid to the time of such casualty, and any rent paid for any period beyond such date shall be repaid to Tenant. EXECUTED THIS 23rd day of March , 2017. LESSEE: CITY OF LUBBOCK, TEXAS DANIEL M. POPE, MAYOR ATTEST: 0-0-vm'e' c -, x, — Reb cca Garza, City Se ret ry APPROVED AS TO CONTENT: 'v) APPROVED AS TO FORM Assi�'tanl 6ity Attorney LESSOR: B R GRIFFIN OIL & GAS LTD MARK GR ST B R GRIFFIN OIL & GAS LTD P O BOX 10128 LUBBOCK TX 79408 (806) 795-8785 DATE SIGNED 13.TENANT DEFAULT AND REMOVAL OF ABANDONED PROPERTY. If Tenant abandons the premises or otherwise defaults in the performance of any obligations or covenants herein, Landlord may enforce the performance of this lease in any manner provided by law. This lease may be terminated at Landlord's discretion if such abandonment or default continues for a period of 30 days after Landlord notifies Tenant of such abandonment or default and of Landlord's intention to declare this lease terminated. Such notice shall be sent by Landlord to Tenant at Tenant's last known address by certified mail. If Tenant has not completely removed or cured default within the 30-day period, this lease shall terminate. Thereafter, Landlord or its agents shall have the right, without further notice or demand, to enter the leased premises and remove all property without being deemed guilty of trespass and without waiving any other remedies for arrears of rent of breach of covenant. Upon abandonment or default by the Tenant, the remaining unpaid portion of the rental from paragraph 4 herein shall become due and payable. Landlord shall have the right to store any property of Tenant that remains on the abandoned premises; and, in addition to Landlord's other rights, Landlord may dispose of the stored property if Tenant does not claim the property within 60 days after written notice delivered to Tenant that Landlord intends to dispose of this property, provided Landlord delivers by certified mail to Tenant at Tenant's last known address a notice stating that Landlord may dispose of Tenant's property if Tenant does not claim the property within 60 days after receipt of the notice. 14. INTERRUPTION OF UTILITIES. Landlord or Landlord's agent may not interrupt or cause the interruption of utility service paid directly to utility companies by Tenant unless interruption results from bona fide repairs, construction, or an emergency. If any utility services furnished by Landlord are interrupted and continue to be interrupted despite the good faith efforts of Landlord to remedy same, Landlord shall not be liable in any respect for damages to the person or property of Tenant or Tenant's employees, agents or guests. Landlord shall use reasonable diligence to repair and remedy such interruption promptly. 15. EXCLUSION OF TENANT. Landlord may not intentionally prevent Tenant from entering the leased premises except by judicial process unless the exclusion results from: bona fide repairs, construction or an emergency. 16. LIEN. Landlord is granted an express contractual lien, in addition to any lien provided by law, and a security interest in all improvements of Tenant to the leased premises, if any, to secure the compliance by Tenant with all terms of this lease. 17. SUBORDINATION. Landlord is hereby irrevocably vested with full power and authority to subordinate this lease to any mortgage, deed of trust or other lien hereafter placed on the leased premises and tenant agrees on demand to execute such further instruments subordinating this lease as Landlord may request, provided such subordination shall be on the express condition that this lease shall be recognized by the mortgage, and the rights of Tenant shall remain in full force and effect during the term of this lease so long as Tenant shall continue to perform all the covenants and conditions of this lease. 18. LANDLORD LIABILITY. Landlord and its employees and agents shall not be liable to Tenant or to Tenant's employees, patrons, visitors, invitees or any other persons for any such injury to any such persons or for damage to personal property caused by an act, omission or neglect of Tenant or Tenant's agents or of any other tenant of the premises of which the leased premises is a part. Moreover, Landlord shall indemnify and hold harmless Tenant and each of Tenant's employees, patrons, visitors, invitees, agents and contractors from any and all claims, demands, actions, judgments or other liability arising from environmental conditions or hazards on the leased premises that arose prior to the effective date of this lease or subsequently developed based upon the actions of the Landlord; provided, however, that Tenant shall use the premises only for such purposes as stated in this lease. 19. SIGNS. Tenant shall not post or paint any signs at, on or about the leased premises or paint the exterior walls of any improvements thereon without the prior written consent of the Landlord. Landlord shall have the right to remove any sign or signs in order to maintain the leased premises or to make any repairs or alterations thereto. 20. CONDEMNATION. If the whole or any substantial part of the leased premises is taken for any public or quasi -public use under any governmental law, ordinance or regulation or by right of eminent domain or should the leased premises be sold to a condemning authority under threat of condemnation, this lease shall terminate and the rent shall be abated during the unexpired portion of the lease effective from the date of the physical taking of the leased premises. 21. PEACEFUL ENJOYMENT. Landlord covenants that if, and so long as Tenant pays the rent and performs the covenants of this lease, Tenant shall peaceably and quietly have, hold and enjoy the premises for the term set forth herein. 22. NOTICES. Notices to Tenant shall be by certified mail or other delivery to: Mayor, City of Lubbock, P O Box 2000, Lubbock, Texas, 79457. 23. DEFAULT BY LANDLORD. In the event of breach by Landlord of any covenant, warranty, term or obligation of this lease, then Landlord's failure to cure same or commence a good faith effort to cure same or commence a good faith effort to cure same within 10 days after written notice thereof by Tenant shall be considered a default and shall entitle Tenant either to terminate this lease or cure the default and make the necessary repairs, and any expense incurred by Tenant shall be reimbursed by the Landlord after reasonable notice of the repairs and expenses incurred. 24. RIGHT OF ENTRY. Landlord shall have the right upon first giving reasonable notice to Tenant, during normal business hours, to enter the leased premises: (a) to inspect the general condition and state of repair thereof; (b) to make repairs required or permitted under this lease; or (c) for any other reasonable purpose. 25. WAIVER OF BREACH. The waiver by Landlord of any breach of any provision of this lease shall not constitute a continuing waiver or a waiver of any subsequent breach of the same or a different provision of this lease. 26. TIME OF ESSENCE. Time is expressly declared to be of the essence in this lease. 27. BINDING OF HEIRS AND ASSIGNS. Subject to the provisions of this lease pertaining to assignment of the Tenant's interest, all provisions of this lease shall extend to and bind or inure to the benefit not only of the parties to this lease but to each and every one of the heirs, executors, representatives, successors and assigns of Landlord or Tenant. 28. RIGHTS AND REMEDIES CUMULATIVE. The rights and remedies by this lease agreement are cumulative and the use of any right or remedy by either party shall not preclude or waive its right to invoke any or all other remedies. Said rights and remedies are given in addition to any other rights the parties may have by law, statute, ordinance or otherwise. 29.TEXAS LAW TO APPLY. This agreement shall be construed under and in accordance with the laws of the State of Texas. 30. LEGAL CONSTRUCTION. In case any one or more of the provisions contained in this agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision hereof and this agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein. 33. PRIOR AGREEMENTS SUPERSEDED. This agreement constitutes the sole and only agreement of the parties to this lease and supersedes any prior understanding or written or oral agreements between the parties respecting the subject matter of this lease. 34. AMENDMENT. No amendment, modification or alteration of the terms and conditions hereof shall be binding unless it is in writing, dated subsequent to the date hereof, and duly executed by the parties. 35. ATTORNEY'S FEES. Any signatory to this lease agreement who is the prevailing party in any legal proceeding against any other signatory brought under or with relation to this lease agreement or this transaction shall be additionally entitled to recover court costs, reasonable attorney fees, and all other out-of-pocket costs of litigation, including deposition, travel and witness costs, from the non -prevailing party. CERTIFICATE OF INTERESTED PARTIES FORM 1295 1 of 1 Complete Nos. 1 - 4 and 6 if there are interested parties. Complete Nos. 1, 2, 3, 5, and 6 if there are no interested parties. OFFICE USE ONLY CERTIFICATION OF FILING Certificate Number: 2017-190380 Date Filed: 04/10/2017 Date Acknowledged: 04/11/2017 1 Name of business entity filing form, and the city, state and country of the business entity's place of business. B.R. GRIFFIN OIL & GAS LTD LUBBOCK, TX United States 2 Name of governmental entity or state agency that is a party to the contract for which the form is being filed. CITY OF LUBBOCK g Provide the identification number used by the governmental entity or state agency to track or identify the contract, and provide a description of the services, goods, or other property to be provided under the contract. 13350 LEASE OF LOT 3 RIP ADDITION, CITY OF LUBBOCK 4 Name of Interested Party City, State, Country (place of business) Nature of interest (check applicable) Controlling I Intermediary 5 Check only if there is NO Interested Party. ❑ X 6 AFFIDAVIT I swear, or affirm, under penalty of perjury, that the above disclosure is true and correct. Signature of authorized agent of contracting business entity AFFIX NOTARY STAMP / SEAL ABOVE Sworn to and subscribed before me, by the said this the day of 20 , to certify which, witness my hand and seal of office. Signature of officer administering oath Printed name of officer administering oath Title of officer administering oath Forms provided by I exas Ethics Commission www.ethics.state.tx.us Version V1.0.883 CERTIFICATE OF INTERESTED PARTIES FORM 1295 1af1 Complete Nos, 1- 4 and 6 if there are interested parties. Complete Nos. 1, 2, 3, 5, and 6 if there are no interested parties. OFFICE USE ONLY CERTIFICATION OF FILING Certificate Number: 2017-190380 Date Filed: 04/10/2017 Date Acknowledged: 1 Name of business entity filing form, and the city, state and country of the business entity's place of business. B.R. GRIFFIN OIL & GAS LTD LUBBOCK, TX United States 2 Name of governmental entity or state agency that is a party to the contract for which the form is being filed. CITY OF LUBBOCK 3 Provide the identification number used by the governmental entity or state agency to track or identify the contract, and provide a description of the services, goods, or other property to be provided under the contract. 13350 LEASE OF LOT 3 RIP ADDITION, CITY OF LUBBOCK 4 Name of Interested Party City, State, Country (place of business) Nature of interest (check applicable) Controlling I Intermediary 5 Check only if there is NO Interested Party. ❑ X 6 AFFIDAVIT I swear, or affirm, under penalty of perjury, that the above disclosure is true and correct. Signature of authorized agent of contracting business entity AFFIX NOTARY STAMP / SEAL ABOVE Sworn to and subscribed before me, by the said this the day of 20 , to certify which, witness my hand and seal of office. Signature of officer administering oath Printed name of officer administering oath Title of officer administering oath Forms provided by Texas Ethics Commission www.ethics.state.tx.us Version V1.0.883