1998-184AN 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 authonzed to execute Amendment No 2 to the
Agreement Between the City of Denton and the Mornson Mllhng 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 thas orchnanee for all purposes
SECTION H. That this ordinance shall become effective immediately upon its passage
and approval
PASSED AND APPROVED th~s the /~ff/~ day of ~ ,1998
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
AMENDMENT NO. 2 TO AGREEMENT BETWEEN
~ CITY OF DENTON AND ~ MORRISON MILLING COMPANY
DATED MAY 5, 1992
WHEREAS, on May 5, 1992, the CITY of DENTON, DENTON COUNTY TEXAS,
herematter called "Ctty," and the MORRISON MII.I.ING COMPANY, hereinafter called "Momson,"
entered into a Lease A~reement Between the City of Denton and the Momson lVhllmg Company for
Warehouse Space at 601 East Hickory hereqna~er called "Lease", and
WHEREAS, the Lease prowdes for a First Term begmmng on May 1, 1992 and terminating on
April 30, 1997, and
WHEREAS, the Lease, as amended on Aprd 11, 1995, extended the Lease to April 30, 2002 for
a Second Term subject to C~ty's right to reduce or temunate by g~xang two-year notice of termination
or redumon, and
WHEREAS, Momson desires to extend the Lease for a Tlurd Term w~th a termination date of
April 30, 2007, and
WHEREAS, the proposed amended Lease would proxade that the C~ty may not reduce or
terminate the Lease during the remmnmg Second Term, but may reduce or terminate the Lease prior to
commencement of or dunng the Tlurd Term by g~wng Momson one-year notice of smd reduction or
teraunatlon, and
WHEREAS, Momson agrees to an increase m the rental rate during the Tlurd Term, and
WHEREAS, City desires to extend the Lease for a Tlurd Term, NOW, THEREFORE,
WlTNESSETH
ARTICLE L
Article HI TERM, section 3 03 Termination or Reduction in Second Term of Lease ~s hereby
and herevath renumbered to sectxon 3 04, and scion 3 03 Tlurd Term is hereby added, to read as
follows
3.03. Third Term. Tlus Lease shall continue m effect for the Tturd Term of tl~s
Lease begummg on April 30, 2002 and tenmnatmg on April 30, 2007, pursuant to the
same terms and con&t~ons as dunng the First Term, proxqded that rent shall be as set forth
at $2 05 per square foot, or $8,217 per month
ARTICLE H.
A~,cle m TErn, section 3 04 Temunataon or Reduction tn Second Term of Lease is hereby
deleted from the Lease and replaced w~th the following
3.04. Termnnation or Reductmn nn Thard Term The C~t~ ~all 1~tve the right
prior to the commencement of or dunng the Thtrd Term to terminate tlus Lease or to
reduce the square footage of the enclosed space tn the Leased Property ff the Cay
determines, m ~ts sole discretion, that all or pan of the Leased Property is needed for Cxty
funcUons or operations, by g~xang Momson written notice not less than one (1) year prior
to the effectxve date of the reductmn or termmatton Cay shall not g~ve written nottce of
termmauon or reduction pursuant to tlus prowslon of the Lease pnor to April 30, 2001
The C~ty may only reduce the Leased Property in increments that include the total leased
area that encompasses Butldmg Area C or F, or both, as shown on Exl~bxt A to the Lease
The Ctty's noUce ofreduct~on to Momson must designate the amount ofreductxon Ifthe
Cxty elects to reduce the Leased Property, Momson shall have the right to terrmnate tlus
Lease by g~xang the Ctty written nouce w~tl~n sixty (60) days fi'om the date Momson
receives notice of the Cxty's elecUon Momson's temunation shall be effective one (1) year
from the date Momson receives the Ctty's notice of reduction
ARTICLE
Except as specifically mended hereto, the terms and condttions of the Lease, as executed by the
pan,es on the 5th day of May, 1992 and Amendment No 1 executed on the 11 day of April, 1995
shall remain In full force and effect
ARTICLE IV
Tlas Amendment No 2 shall become effective immediately upon ~ts execuuon
Executedtlus /~dayof ~ , 1998
CITY OF DENTON, TEXAS
'tED BENAVIDES, CITY MANAGER
ATTEST
JENNIFER WALTERS, CITY SECRETARY
PAGE 2
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
THE MORKISON M~LLING COMPANY
TITLE
PAGE 3