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Ord. 0575 08-29-89ORDINANCE NO. 575 AN ORDINANCE AUTHORIZING THE EXECUTION OF A LEASE AGREEMENT, A FACSIMILE OF SAME BEING ANNEXED HERETO, INCORPORATED HEREIN FOR ALL PURPOSES DESIGNATED EXHIBIT "A" BY AND BETWEEN PEARLAND/HOBBY AREA CHAMBER OF COMMERCE, AND THE CITY OF PEARLAND, TEXAS. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PEARLAND: SECTION 1. That the facsimile of Lease Agreement, annexed hereto, incorporated herein for all purposes, designated Exhibit "A", by and between Pearland/Hobby Area Chamber of Commerce and the City of Pearland, Texas, for the purpose of extending the lease on the Depot is hereby authorized and approved. SECTION 2. That the City Council finds that such lease agreement should be extended for an additional ten years at the same rental price. SECTION 3. That the Mayor and City Secretary of the City of Pearland, Texas, is hereby authorized and directed to execute for and on behalf of the City the annexed contract documents, and counterparts thereof and the City Secretary is authorized to attest to the signing of said agreement. PASSED and APPROVED on FIRST READING this the /1 day of ct ATTEST: CITY CRETARY , A.D., 1989. MAYOR 1 PASSED and APPROVED on SECOND AND FINAL READING this ODD day of , A.D., 1989. ATTEST: CITY SECRETARY APPROVED AS TO FORM: CITY ATTORNEY 2 MAYOR EXHIBIT "A" THE STATE OF TEXAS KNOW ALL MEN BY THESE PRESENTS: COUNTIES OF BRAZORIA AND HARRIS LEASE AGREEMENT This Lease Agreement is made and entered into this 3/ AIL day of ,La Mt , 1989, at Pearland, Brazoria and Harris Counties, Texas, by and between the City of Pearland, Texas, a Home Rule Municipal Corporation, hereinafter called Lessor, and the Pearland/Hobby Area Chamber of Commerce, a Texas Non -Profit Corporation, of Pearland, Brazoria and Harris Counties, Texas, hereinafter called Lessee. WITNESSETH I. DEMISE AND DESCRIPTION In consideration of the mutual covenants and agreements herein set forth, and other good and valuable consideration, Lessor does hereby demise and lease to Lessee, and Lessee does hereby lease from Lessor, the premises situated on Liberty Drive in Pearland, Brazoria County, Texas, more particularly described as follows: • A .498 acre tract of land out of the north corner of a 7.298 acre tract of land located in the W.D.C. Hall Survey, Abstract 70 Brazoria County, Texas. This being the same 7.298 acre tract of land conveyed to the City of Pearland from Aaron Pasternak, Trustee on September 21, 1976 and Recorded in Volume 1310, Page 836 of the Deed Records of Brazoria County, Texas, and being more fully described by metes and bounds as follows, to -wit: BEGINNING at the north corner of the 7.298 acre tract of land heretofore mentioned above, this point also being in the Southeasterly right-of-way line of Liberty Drive. THENCE south 47 deg. 44 min. east along the northeast property line at said 7.298 acre tract a distance of 155.0 feet to a point for corner. THENCE south 41 deg. 31 min. 50 sec. west a distance of 140.0 feet to a point for corner. THENCE north 47 deg. 44 min. west a distance of 155.0 feet to a point. Said point being in the Southeasterly right-of- way line of Liberty Drive. THENCE north 41 deg. 31 min. 50 sec. east along the Southeasterly right-of-way line of Liberty Drive a distance of 140.0 feet to the place of beginning, together with the structure situated thereon known and described herein as the "Old Depot Building". 1 II. TERM AND OPTION The term of this lease is Ten (10) years commencing on the j/41. days of 0-,-/l.�J/ at , 1989, and ending on the 3l day of (,l.I/la,/ , 1999, unless sooner terminated as herein provilied. Lessee is hereby granted and shall, if not at the time in default under this lease, have an option to extend the original term of this lease for additional terms of ten (10) years each, but not to exceed two (2) extensions. Said extensions shall be of the same terms as this lease, except that the rental may, at the Lessor's option, be increased to the sum of FIVE DOLLARS ($5.00) per month. Lessee shall give Lessor written notice of its intention to renew and extend at least 90 days prior to expiration of this lease. III. RENT The total rent of this lease is the sum of ONE HUNDRED TWENTY & NO/100 ($120.00) DOLLARS. Lessee agrees to pay to Lessor said amount in monthly installments of ONE & NO/100 ($1.00) DOLLARS each, payable at the City Hall of Pearland, Texas, beginning on the 1st day of November , 1989, and payable on the 1st day of each month thereafter during the term of the lease. Lessee shall have the option to prepay all of the rentals herein provided in advance. IV. USE OF PREMISES The premises are leased to be used as a Chamber of Commerce Building generally. Lessee agrees to restrict their use to such purposes, and not to use, or permit the use of, the premises for any other purpose without first obtaining the consent in writing of Lessor, or Lessor's authorized officials or agents. V. TAXES AND ASSESSMENTS Lessee will pay before delinquency any and all taxes levied or assessed upon Lessee's fixtures, equipment, and personal property in 2 or on the demised premises, whether or not affixed. to the real property. Lessee shall not be responsible for the payment of any ad valorem taxes that may be due and payable on the demised premises. VI. UTILITIES Lessee agrees to pay before delinquency all charges for water, gas, heat, electricity, power, and other similar charges incurred by Lessee with respect to and during its occupancy of the demised premises. VII. ALTERATIONS, IMPROVEMENTS AND FIXTURES Lessee shall have the right at its own cost and expense from time to time during the term, or any extended term, hereof to improve, add to or alter the leased premises and to install fixtures thereon, provided, however, that it shall not remove any such improvements, additions, alterations, or fixtures without the prior written consent of Lessor, and provided further, that on expiration or sooner termination of this lease, all improvements, including fixtures and all addition alteration, or repair to the premises place on or made to the premises by Lessee during the terms hereof, shall revert to and become the absolute property of Lessor, free and clear of any and all claims against them by Lessee or any third person, and Lessee hereby agrees to hold Lessor harmless from any claims that may be made against such improvements by any third persons. Lessee shall not suffer or permit any mechanic's liens or other liens to be filed against the fee of the leased premises nor against Lessee's leasehold interest in the land nor any buildings or improvements on the leased premises by reason of any work, labor, services, or materials supplied or claimed to have been supplied to Lessee or to anyone holding the leased premises or any part thereof through or under Lessee. If any such mechanic's liens or materialmen's liens shall be recorded against the leased premises, or any improvements thereon, Lessee shall cause the same to be removed or, in the alternative, if Lessee in good faith desires to contest the 3 same, Lessee shall be privileged to do so, but in such case Lessee hereby agrees to indemnify and save Lessor harmless from all liability for damages occasioned thereby and shall, in the event of a Judgment of foreclosure on said mechanic's lien, cause the same to be discharged and removed prior to the execution of such Judgment. VIII. INSURANCE AND INDEMNIFICATION Lessee agrees to procure and maintain in force during the term of this lease and any extension thereof, at its expense, public liability insurance in one or more responsible insurance companies duly authorized to transact business in Texas, adequate to protect against liability for damage claims through public use of or arising out of accidents occurring in or around the leased premises, in a minimum amounts of $100,000/$300,000 for Bodily Injury and $100,000/$300,000 for Property Damage. Such insurance shall provide coverage for Lessor's contingent liability on such claims or losses. Lessee agrees to obtain a written obligation from the insurers to notify Lessor in writing at least 30 days prior to cancellation or refusal to renew any such policies. During the period of construction of any improvements on the leased premises and at all times during the lease term, Lessee shall at its expense keep the improvements insured against loss or damage by fire, with extended coverage endorsement or its equivalent in such responsible insurance companies doing business in Texas as Lessee shall select and Lessor shall approve, and in amounts not less than eighty (80) percent of the fair insurable value of the buildings and other improvements. Such policy or policies of insurance shall name both Lessor and Lessee as a named insured. Lessor shall not be liable for any loss, damage, or injury of any kind or character to any person or property arising from any use of the leased premises, or any part thereof, or caused by any defect in any building, structure, or other improvement thereon or in any equipment or other facility therein, or caused by or arising from any act or omission of Lessee, or any of its agents, employees, licensees, or invitees, or by or from any accident on the land or any fire or other casualty thereon, or occasioned by the failure of Lessee 4 to maintain the premises in safe condition, or arising from any other cause whatsoever, and Lessee hereby waives on its behalf all claims and demands against Lessor for any such loss, damage, or injury of Lessee, and hereby agrees to indemnify and hold Lessor entirely free and harmless from all liability for any such loss, damage, or injury of other persons, and from all costs and expenses arising therefrom. IX. ASSIGNMENT OR SUBLEASE Lessee shall not, without obtaining the written consent of the Lessor, assign, mortgage, pledge, or encumber this lease, in whole or in part, or sublet the premises or any part thereof. X. REPAIRS GENERALLY The Lessee shall, at its own cost and expense, keep and maintain all of the demised premises, buildings, parking area and green area. Lessor shall not be responsible for any improvements or repairs whatsoever in or upon the demised premises. XI. PARKING RESTRICTIONS Lessee shall not construct or allow any vehicle parking or vehicle parking areas to be situated on any area that faces the public roadway known as Liberty Drive. All parking areas utilized by Lessee shall be situated behind the present buildings situated thereon. XII. QUIET POSSESSION Lessor shall on the commencement date of the term of this lease as hereinabove set forth, place Lessee in quiet possession of the leased premises and shall secure it in the quiet possession thereof against all persons lawfully claiming the same during the entire lease term and any extensions thereof. 5 XIII. SIGNS Lessee shall not erect, install, operate nor permit to be erected, installed or operated in or upon the premises herein, any signs or other similar advertising devise without first having obtained the prior written consent of Lessor. XI V. HOLDING OVER In the event Lessee shall hold over or remain in possession of the premises herein leased after the primary term without any written renewal thereof, such holding over shall not be deemed to operate as a renewal or extension of this agreement but shall only create a tenancy from month to month which may be terminated at any time by the City. XV. DEFAULT Should Lessee be in default for a period of more than 30 days in the payment of any rent payable under this lease or in the performance of any other provision of this lease, Lessor may terminate this lease and regain possession of the leased premises in the manner provided by the laws of the State of Texas in effect at the date of such default. XVI. MISCELLANEOUS ATTORNEY'S FEES Should any litigation be commenced between the parties hereto concerning the leased premises, this lease, or the rights and duties of either party in relation thereto, the party prevailing in such litigation shall be entitled, in addition to such other relief as may be granted, to a reasonable sum as and for his attorney's fees in such litigation. WAIVER OF BREACH The waiver by Lessor 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. 6 TIME OF ESSENCE Time is expressly declared to be of the essence of this lease. BINDING OF HEIRS AND ASSIGNS Subject to the provisions of this lease against assignment of the Lessee's interest hereunder, all provisions of this lease shall extend to and bind, or inure to the benefit not only of the parties hereto but to each and every one of the heirs, executors, representatives, successors, and assigns of Lessor or Lessee. RIGHTS AND REMEDIES CUMULATIVE The rights and remedies provided by this lease agreement are cumulative and the use of any one right or remedy by either party shall not preclude or waive its right to use any or all other remedies. Said rights and remedies are give in addition to any other rights the parties may have by law, statute, ordinance, or otherwise. TEXAS LAW TO APPLY This agreement shall be construed under and in accordance with the laws of the State of Texas, and all obligations of the parties created hereunder are performable in Brazoria and Harris Counties, Texas. LEGAL CONSTRUCTION In case any one or more of the provisions contained in the 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 thereof and this agreement shall be construed as if such invalid, illegal, or unenforceable provision had never been contained herein. PRIOR AGREEMENTS SUPERSEDED This agreement constitutes the sole and only agreement of the parties hereto and supersedes any prior understandings or written or oral agreements between the parties respecting the within subject matter. AMENDMENT No amendment, modification, or alteration of the terms hereof shall be binding unless the same be in writing, dated subsequent to the date hereof and duly executed by the parties hereto. 7 IN WITNESS WHEREOF, the undersigned Lessor and Lessee hereto execute this agreement as of the day and year first written above. LESSOR CITY OF PEARLAND, fl)CAS BY: �'1-`-/ MAYOR LESSEE PEARLAND/HOBBY AREA CHAMBER OF COMMERCE BY 8