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1995-156C:\WPDOCS\ORD\AMERLEGI.O AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE A LEASE WITH AMERICAN LEGION POST NO. 840 FOR THE LEASE OF THE AMERICAN LEGION BUILDING IN THE FRED MOORE PARK; CANCELLING THE EXISTING LEASE; AND PROVIDING FOR AND EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I. That certain Lease Agreement Between the City of Denton and the American Legion Post No. 840 for the lease of the American Legion Building In Fred Moore Park (Lease) is hereby approved and the Mayor, or in his absence, the Mayor Pro Tem, is hereby authorized to execute that Lease in substantially the form of the attached Lease which is made a part of this ordinance for all purposes. SECTION II. That immediately upon the passage of this ordinance and the execution of the attached Lease by the parties, that certain Lease Agreement executed by the parties on the 25th day of July, 1953, is hereby cancelled and of no further force and effect. SECTION III. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the ~~day of ~, 1995. BOB CASTLEBERRY, MAY~ ATTEST: JENNIFER WALTERS, CITY SECRETARY HERBERT L. PROUTY, CITY ATTORNEY BY: ~ - ' LEASE AGREEMENT BETWEEN THE CITY OF DENTON AND AMERICAN LEGION POST NO. 840 FOR THE LEASE OF THE AMERICAN LEGION BUILDING IN FRED MOORE PARK TABLE OF CONTENTS ARTICLE I. DEFINITIONS ..... ' 1 1 1.01. Lessor . · 1.02. Hazardous Substance . · . . . 1 1.03. Lease .... ' · 1 1.04. Leased Property . . . 1 1.05. Lessee . . . . . 2 1.06. American L~gion Building . 2 1.07. Parking Area . . 2 ARTICLE II. LEASED PROPERTY . . 2 · · 2 2.01. Leased Property . . 2.02. Parking Area ...... 2 2.03. Use of Leased Property ..... 2 2.04. No Warranties .... . . . . 3 2.05. Hazardous Substances ......... 3 ARTICLE III. TERM ......... 4 3.01. First Term ........... 4 3.02. Second Term ...... 4 ARTICLE IV. RENTALS AND PAYMENTS ..... 4 4.01. Consideration . . 4 4.02. Destruction of Property . · · 4 ARTICLE V. UTILITIES ......... 5 5.01. Utilities ......... 5 ARTICLE VI. IMPROVEMENTS, ALTERATIONS AND REPAIRS . . . 5 6.01. Roof and Exterior Repairs . . . 5 6.02. Interior Repairs .......... 5 6.03. Alterations or Improvements .... 5 6.04. Lessor Approval of Plans; Compliance with Laws . 6 6.05. Signs ...... 6 ARTICLE VII. INSURANCE AND INDEMNITY ...... 6 7.01. Personal Property Insurance . . . 6 7.02. Indemnity by Lessee ........ 6 7.03. Indemnity by Lessor ...... 6 7.04. Notice of Claim .............. 7 ARTICLE VIII. CANCELLATION BY LESSOR 7 8.01. Default by Lessee ....... 7 · 7 8.02. Default by Lessor · . . 7 8.03. Removal of Personal Property . · 7 8.04. Repairs . . 7 8.05. No Waiver ' 8.06. Transfer of Permanent Improvements . 8 ARTICLE IX. MISCELLANEOUS PROVISIONS 8 8 9.01. Entire Agreement ...... 9.02. Subletting or Assignment . 8 9.03. Lease Binding on Successors and Assigns ...... 8 9.04. Severability . · . . . . 8 9.05. Notice ...... 8 · 9.06. Headings · - 9.07. Tolling of Time .... ' . 9 9.08. Cancellation of Base Lease . 9 PAGE 2 STATE OF TEXAS COUNTY OF DENTON LEASE AGREEMENT BETWEEN THE CITY OF DENTON AND AMERICAN LEGION POST NO. 840 FOR THE LE~SE OF THE AMERICAN LEGION BUILDING IN FRED MOORE PARK This Agreement for the lease of the real property is made between the City of Denton, a municipal corporation of the State of Texas (Lessor), and American Legion Post No. 840, a non profit Texas corporation (lessee). Whereas, the parties have entered into that certain Lease Agreement executed on the 25th day of July, 1953 for the lease of the American Legion Building and a certain parcel of land within Fred Moore Park on which the building sits; hereinafter referred to as "Base Lease"; and Whereas, the parties wish to cancel the Base Lease and to enter into a new lease. The parties, therefore, agree as follows: ARTICLE I. DEFINITIONS This Article contains definitions of certain terms used in this Lease, set forth as follows: 1.01. Lessor. City of Denton, Texas. 1.02. Hazardous Substance. Any substance that is toxic, ignitable, reactive, or corrosive and that is regulated by any local government, the state of Texas, or the United States Government or any agency thereof. "Hazardous Substance" includes any and all material or substances that are defined as "hazardous waste," "extremely hazardous waste," or a "hazardous substance" pursuant to state, federal, or local government law. "Hazardous Substance" includes without limitation, asbestos, polycholoro- biphenyls ("PCBS"), and petroleum. 1.03. Lease. This Lease Agreement. 1.04. Leased Property. Approximately 2,400 square feet of land, including a building known as the American Legion Building and all appurtenant structures and fixtures attached thereto, located in Fred Moore Park, as more completely shown in the attached legal description, Exhibit A, which is attached to and made a part of this Lease for all purposes as if written word of word herein. 1.05. Lessee. American Legion Post 840. 1.06. American Legion Building. That building, constructed by the American Legion Post No. 840, located at 629 Lakey Street, within Fred Moore Park, in the City and County of Denton, Texas and located on the land described in Exhibit A. 1.07. Parking Area. The parking area designated by the Lessor for the use of Lessee for parking motor vehicles, during the times Lessee is actually utilizing the Leased Property under this Lease and is more fully described by the processed area on Exhibit B, which is attached to and made a part of this Lease for all purposes. ARTICLE II. LEASED PROPERTY 2.01. Leased Property. In consideration of the Lessee's agreement to cancel the Base Lease, the Lessee's agreement to transfer the American Legion Building to Lessor at the end of the Lease term or any extended Lease term hereunder as Lessor's property and in consideration of the other covenants and obligations assumed by the Lessee hereunder, the Lessor leases to Lessee and Lessee leases from Lessor the Leased Property. 2.02. Parking Area. The Lessor shall provide Lessee, at no additional charge, the Parking Area during the time it is utilizing the property as shown on the cross exterior in Exhibit B, which shall be subject to reasonable regulations of Lessor. 2.03. Use of Leased Property. Lessee may use and occupy the Leased Property for at least one regular meeting of Lessee on one day per month and for additional special occasions each year in accordance with a calendar schedule to be completed by the Lessee and attached to this Lease as Exhibit C within thirty (30) days of the date of execution of this Lease. In each succeeding year of the term of this Lease within 30 days from the anniversary date of this Lease, Lessee shall submit a calendar for each subsequent year of this Lease showing its time of use during the year. Upon giving ten (10) days notice to the Lessor, through its director of parks and recreation, Lessee may make changes in the schedule subject to the approval of the Lessor. a. The Lessee has the right to negotiate changes in the schedule or to transfer its times of usage based on agreements between the Lessee and other users of the American Legion Building. b. The Lessee understands and agrees that the Lessor will maintain and make changes to the property through Lessor's consultant, Architectural Collective, Inc., and during the term of this Lease the Lessee grants Lessor, its PAGE 2 architects, officers, employees, consultants and contractors full ingress and egress to the property for the purpose of making improvements, renovations and for maintenance of the Leased Property. c. In accordance with Section 22-27 of the City Code of ordinances, by approving this Lease, the City Council has approved all the times of use by the American Legion as scheduled events and the American Legion may use the property during the various times of use or scheduled events until 12:00 p.m. for each calendar day of use. 4. Lessee agrees that this Lease is not exclusive and Lessor shall have an unrestricted right to lease the American Legion Building and the underlying Leased Property to other parties, including without limitation, senior citizen groups and other individuals and entities at times when Lessee is not utilizing the Leased Property. e. During the times of use hereunder Lessee may utilize property for any legal operations enjoyed by Lessee related to its American Legion activities, and for no other use whatsoever. Lessee shall not do or permit anything to be done in or about the Leased Property that will materially obstruct or materially interfere with the rights of other persons occupying the Leased Property or the surrounding area of Fred Moore Park. Lessee shall not permit any nuisance in, on, or around the Leased Property, and shall regularly remove therefrom all trash and debris. Lessee shall comply with any laws, statutes, ordinances, rules or regulations of any governmental or quasi-governmental authority affecting the Leased Property, now in force or that may hereafter be enacted and promulgated. 2.04. No Warranties. The Leased Property is leased to Lessee "AS IS", with Lessee accepting all defects, if any, and the Lessor makes no warranty or representations of any kind, express or implied, with respect to habitability, fitness or suitability of any part thereof, including the absence of any toxic or otherwise hazardous substances, except as otherwise provided in this Lease. 2.05. Hazardous Substances. Except for pesticides kept and dispensed in accordance with State and Federal law and regulations, Lessee shall not cause or permit any Hazardous Substance to be used stored, generated, or disposed of on the Leased Property, without the Lessor's written consent. If Hazardous Substances are used, stored, generated or disposed of on the Leased Property or Temporary Use Property by Lessee, its employees, agents, or contractors, except as permitted above, Lessee shall indemnify, defend and hold the Lessor, its officers, agents and employees, harmless from any and all claims, damages, fines, costs, liabili- ties, or losses, including without limitation, any and all costs PAGE 3 incurred because of any investigation of the site or any cleanup, removal, or restoration mandated by a federal, state, or local agency or political subdivision resulting from the use, storage, generation or disposal of Hazardous Substances by Lessee, its employees, agents, or contractors in violation of Applicable Laws. ARTICLE III. TER~ 3.01. First Term. The First Term of this Lease shall begin on August , 1995, and shall terminate on August ., 2005, unless earlier terminated as provided in this Lease. 3.02. Second Term. If, before March 1, 2005, Lessee gives written notice to the Lessor that it wishes to extend this Lease for a Second Term, this Lease shall continue in effect until August , 2015, on the same terms and conditions as were in effect during the First Term. ARTICLE IV. RENTALS AND PAYMENTS 4.01. Consideration. In consideration for this Lease, Lessor acknowledges that the Lessee has constructed the American Legion Building and has agreed that the American Legion Building shall become the property of the Lessor on the termination of this Lease and that Lessee has agreed to perform the other terms and obligations of this Lease. 4.02. Destruction of Property. If the Leased Property is damaged by fire or other casualty, the Lessor may repair or recon- struct the Leased Property to substantially the same condition as existed immediately prior to the casualty or terminate this Lease by notifying Lessee within sixty (60) days after the date of the fire or other casualty, such termination to be effective as of the date of such fire or other casualty. If the Lessor elects to rebuild the Leased Property and the reconstruction is not completed within one hundred-eighty (180) days from the date of the fire or other casualty, Lessee shall have the right to terminate this Lease by delivering written notice of termination to the Lessor prior to completion of the reconstruc- tion. The Lessor shall not be liable to Lessee for loss of the use of the whole or any part of the Leased Property, Lessee's personal property, or any inconvenience, loss of business or profit, or annoyance arising from any repair and reconstruction. PAGE 4 ~RTICLE Vo UTILITIES 5.01. Utilities. Lessor shall provide for electricity, natural gas, solid waste removal, telephone service or any other utility services supplied to the Leased Property in the usual and customary manner that it provides such services to other park facilities at no expense to Lessee. ARTICLE VI. IMPROVEMENTS, ALTERATIONS AND REPAIRS 6.01. Roof and Exterior Repairs. Lessor shall keep the roof and exterior walls of the Leased Property in good repair, excluding the replacement of glass, but the Lessor shall not be liable to Lessee for lost revenues, profits, damages, claims, or losses of any kind, including loss or damage to merchandise or materials stored or kept on the Leased Property, because of the Lessor's failure to make timely or adequate repairs or to provide security or otherwise to comply to with the terms and conditions of this Lease. 6.02. Interior Repairs. By taking possession of the Leased Property, Lessee shall be deemed to have accepted the same as being suitable for the conducting of the Lessee's business and for the special events to be held in accordance with the calendar attached as Exhibit C hereunder. The Lessor shall maintain and repair such property in accordance with its own maintenance policy and procedures for similar properties at no expense to Lessee. Lessee, will not damage or injure the Leased Property, or the appurtenances or fixtures thereof, and shall keep the Leased Property in good condition and repair, ordinary wear and tear along excepted. Any such injury or damage to the Leased Property caused by or resulting from any act, omission or neglect of Lessee or Lessee's employees, servants, agents, or invitees shall be repaired or replaced by Lessee, at its expense. 6.03. Alterations or Improvements. Lessee shall have the right, at its own expense, to make any alterations or improvements to the Leased Property, provided that the alterations or improve- ments are first approved in writing by the Lessor. The Lessor shall notify Lessee in writing of its approval or disapproval of proposed alterations or improvements within fifteen (15) days after the Lessor receives a written request from Lessee which adequately describes or illustrates the alterations or improvements. If the Lessor fails to notify Lessee within the fifteen (15) days, the proposed alterations shall be deemed approved. Ail alterations or improvements shall be performed in such a manner that no mechan- ic's, materialman's or other similar liens shall attach to the Leased Property. Except as expressly provided in this Lease, any alterations or improvements shall become a part of the Leased Property and shall belong to the Lessor, without compensation to Lessee, at the expiration of this Lease or the termination of Lessee's right to possession of the Leased Property. PAGE 5 6.04. Lessor &pproval of Plans; Compliance with Laws. Any provision of this Lease providing for the Lessor's approval or dis- approval of improvements or alterations to the Leased Property applies to the Lessor acting in the capacity of the landlord or owner of the Leased Property and shall not apply to the Lessor's review, approval, or disapproval of any plans for improvements or alterations when acting in its capacity as a governmental entity administering and enforcing building codes or other laws or regula- tions. In making any alterations or improvements, Lessee shall comply with all Federal, State, and local laws, regulations, or ordinances, including the issuance of permits and the payment of fees. 6.05. signs. Lessee shall not post any signs on the Leased Property without the approval of the Lessor as landlord with the exception of any signs, emblems or banners which identify the building as the American Legion Building or identify this structure as the meeting place of Lessee. Any signs approved by the Lessor as landlord shall comply with the Lessor's ordinance regulating signs. ARTICLE VII. INSURANCE ~ INDEMNITY ?.01. Personal Property Insurance. Lessee shall be sole responsible for any personal property that it places or stores in the American Legion Building and it shall not place any personal property in the building which will increase the risk of loss by fire, storm, water damage, or other casualty or shall increase the Lessor's insurance premiums or self insurance risk. ?.02. Indemnity by Lessee. Lessee shall indemnify and hold the Lessor, its officers, agents and employees harmless from all fines, suits, costs, and liability of every kind arising from: (a) Any violation or nonperformance by Lessee of any repre- sentation or covenant contained in this Lease which continues be- yond any applicable cure period; and (b) Any bodily injury, death, or property damage that is proximately caused by the negligence or willful misconduct of Lessee or any of its agents, employees, or contractors. The indemnity set out in this section shall not apply to matters caused in whole or in part by Lessor or anyone acting for Lessor. 7.03. Indemnity by Lessor. To the extent allowed by law, the Lessor shall indemnify and hold Lessee harmless from all fines, suits, costs, and liability of every kind arising from: (a) Any violation or nonperformance by the Lessor of any representation or covenant contained in this Lease which continues beyond any applicable cure period; and PAGE 6 (b) Any bodily injury, death, or property damage that is proximately caused by the negligence or willful misconduct of the Lessor or any of its agents, employees, or contractors. The indem- nity set out in this section shall not apply to matters caused in whole or in part by Lessee or anyone acting for Lessee. 7.04. Notioe of Claim. Lessee shall give written notice to the Lessor within ten (10) days of the date Lessee receives notice of a claim for damages for bodily injury or property loss arising from some condition or use of the Leased Property or the Temporary Use Property by any person who is not an employee of Lessee. /%RTICLE VIII. C~%NCELLATION BY LESSOR 8.01. Default by Lessee. If Lessee fails to comply with any of the terms of this Lease, the failure shall be considered a default and the Lessor shall give Lessee written notice of the breach and request Lessee to correct the breach. Should Lessee fail to correct the breach within sixty (60) days following receipt of the notice, the Lessor shall have the right to terminate this Lease by giving Lessee written notice of termination. 8.02. Default by Lessor. If the Lessor fails to comply with any of the terms of this Lease, the failure shall be considered a default and Lessee shall give the Lessor written notice of the breach and request the Lessor to correct the breach. Should the Lessor fail to correct the breach within sixty (60) days following receipt of the notice, Lessee shall have the right to terminate this Lease by giving the Lessor written notice of termination. 8.03. Removal of Personal Property. Upon termination of this Lease, Lessee shall have the right to remove its trade fixtures and personal property if the removal does not cause damage to the Leased Property. Lessee shall remove all personal property from the Leased Property within ten (10) days after the termination and should Lessee fail to do so, the Lessor may elect to retain posses- sion of the property or sell the same and keep the proceeds or have the property removed at the expense of Lessee. 8.04. Repairs. Where, upon termination of the Lease, the fixed improvements become the property of the Lessor as provided herein, Lessee shall repair, at its own expense, any damage to the fixed improvements, resulting from the removal of personal property and shall leave the Leased Property in a neat and clean condition with all other improvements in place, ordinary wear and tear excepted. 8.05. No waiver. Failure of the Lessor to declare this Lease terminated upon the default of Lessee shall not waive the right of the Lessor to cancel this Lease for a later default. PAGE 7 8.06. Transfer of Permanent Improvements. That immediately upon the termination of this Lease, Lessee shall transfer and convey the American Legion Building and all other fixtures and fixed improvements to Lessor and all such improvements shall become the property of the Lessor in fee simple. Lessee hereby agrees to sign and deliver to Lessor any documents of conveyance or other documents necessary to effect said transfer within ten (10) days of the date of termination of this Lease. ARTICLE IX. MISCELLANEOUS PROVISIONS 9.01. Entire Agreement. This Lease constitutes the entire understanding between the parties and supersedes all prior or inde- pendent agreements between the parties covering the subject matter hereof. Any change or modification hereof shall be in writing and signed by both parties. 9.02. Subletting or Assignment. Lessee shall not rent or sublease the Leased Property or assign this Lease without the prior written consent of Lessor. 9.03. Lease Binding on Su¢oessors and Assigns. Ail cove- nants, agreements, provisions and conditions of this Lease shall be binding upon and inure to the benefit of the respective parties hereto and their legal representatives, successors or assigns. 9.04. Severabilit¥. If any provision of this Lease shall be declared void or illegal by any court or administrative agency having jurisdiction, the remaining provisions shall continue in effect as nearly as possible in accordance with the original intent of the parties. 9.05. Notice. Any notice given by one party to the other in connection with this Lease shall be in writing and shall be sent by registered mail, return receipt requested, with postage and reg- istration fees prepaid, as follows: If to Lessor, addressed to: If to Lessee, addressed to: city Manager American Legion Post No. 840 city of Denton 629 Lakey Street 215 E. McKinney Denton, Texas 76201 Denton, Texas 76201 Notices shall be deemed to have been received on the date shown on the receipt, if sent by certified mail, or on the date received, if delivered by hand. 9.06. Headings. The headings used in this Lease are intended for convenience of reference only and do not define or limit the scope or meaning of any provision of this Lease. PAGE 8 9.07. Tolling of Time. Whenever a period of time is pre- scribed in this Lease for action to be taken, the party required to take the action will not be liable or responsible for, and there shall be excluded from the computation of time, any delays due to strikes, riots, acts of God, shortages of labor or materials, war, Applicable Laws, or any other causes which are beyond the control of the party, excluding financial inability. 9.08. Cancellation of Base Lease. As of the execution of this Lease by all the parties the Base Lease between the parties dated the 25th of July, 1953, is hereby terminated and declared to null and void and of no further force and effect. /~ WiTNES~WH~REOF.~the parties have executed this Lease the ay of ~ , 1995. CITY OF DENTON, TEXAS, THE LESSOR BOB CASTLEBERRY, MAY~ ~ ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY AMERICAN LEGION POST NO. 840, THE LESSEE TITLE: E: \WPDOCS\K\AMERLEG. K PAGE 9