HomeMy WebLinkAbout1998-184ORDINANCENO qo-14
AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AMENDMENT NO 2 TO
THE AGREEMENT BETWEEN THE CITY OF DENTON AND THE MORRISON MILLING
COMPANY TO EXTEND THE LEASE FOR WAREHOUSE SPACE TO A THIRD TERM,
AND PROVIDING AN EFFECTIVE DATE
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION I. That the Mayor is hereby authorized to execute Amendment No 2 to the
Agreement Between the City of Denton and the Morrison Milling Company to extend the lease
for warehouse space to a third term, substantially in the form of the Agreement which is attached
hereto and made a part of this ordinance for all purposes
SECTION II. That this ordinance shall become effective immediately upon its passage
and approval PASSED AND APPROVED this the /60day of UML , 1998
JACXMfLLER, MAYOR
ATTEST;
JENNIFER WALTERS, CITY SECRETARY
BY zQ
y 71404
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
BY 4c
P \ h.dWept\LGL\D.,\ORDWORRISON MILLING AMSNDMSNT d.
AMENDMENT NO.2 TO AGREEMENT BETWEEN
THE CITY OF DENTON AND THE MORRISON MILLING COMPANY
DATED MAY 5,1992
WHEREAS, on May 5, 1992, the CITY of DENTON, DENTON COUNTY TEXAS,
hereinafter called "City," and the MORRISON MILLING COMPANY, hereinafter called "Momson,"
entered into a Lease Agreement Between the City of Denton and the Morrison Milting Company for
Warehouse Space at 601 East Hickory hereinafter called "Lease", and
WHEREAS, the Lease provides for a First Term beginning on May 1, 1992 and terminating on
April 30, 1997, and
WHEREAS, the Lease, as amended on April 11, 1995, extended the Lease to April 30, 2002 for
a Second Tenn subject to City's right to reduce or terminate by giving two-year notice of termination
or reduction, and
WHEREAS, Morrison desires to extend the Lease for a Third Term with a termination date of
April 30, 2007, and
WHEREAS, the proposed amended Lease would provide that the City may not reduce or
terminate the Lease during the remaining Second Term, but may reduce or terminate the Lease prior to
commencement of or during the Third Term by giving Morrison one-year notice of said reduction or
termination, and
WHEREAS, Morrison agrees to an increase in the rental rate during the Third Term, and
WHEREAS, City desires to extend the Lease for a Third Term, NOW, THEREFORE,
WITNESSETH
ARTICLE L
Article III TERM, section 3 03 Termination or Reduction in Second Term of Lease is hereby
and herewith renumbered to section 3 04, and section 3 03 Third Term is hereby added, to read as
follows
3.03. Third Term. This Lease shall continue in effect for the Third Term of this
Lease beginning on April 30, 2002 and terminating on April 30, 2007, pursuant to the
same terms and conditions as during the First Term, provided that rent shall be as set forth
at $2 05 per square foot, or $8,217 per month
ARTICLE H.
Article III TERM, section 3 04 Termination or Reduction in Second Term of Lease is hereby
deleted from the Lease and replaced with the following
3.04. Termination or Reduction in Third Term The City shall have the right
prior to the commencement of or during the Third Term to terminate this Lease or to
reduce the square footage of the enclosed space in the Leased Property if the City
determines, in its sole discretion, that all or part of the Leased Property is needed for City
functions or operations, by giving Morrison written notice not less than one (1) year prior
to the effective date of the reduction or termination City shall not give written notice of
termination or reduction pursuant to this provision of the Lease prior to April 30, 2001
The City may only reduce the Leased Property in increments that include the total leased
area that encompasses Building Area C or F, or both, as shown on Exhibit A to the Lease
The City's notice of reduction to Morrison must designate the amount of reduction If the
City elects to reduce the Leased Property, Morrison shall have the right to terminate this
Lease by giving the City written notice within sixty (60) days from the date Morrison
receives notice of the City's election Mornson's termination shall be effective one (1) year
from the date Morrison receives the City's notice of reduction
ARTICLE III.
Except as specifically amended herein, the terms and conditions of the Lease, as executed by the
parties on the 5th day of May, 1992 and Amendment No 1 executed on the 1 la day of April, 1995
shall remain in full force and effect
ARTICLE IV
This Amendment No 2 shall become effective immediately upon its execution
Executed this 6 day of 1998
CITY OF DENTON, TEXAS
BY�,fJGr
D BENAVIDES, CITY MANAGER
ATTEST
JENNIFER WALTERS, CITY SECRETARY
PAGE 2
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
THE MORRISON MILLING COMPANY
TITLE
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