1992-092e ~pdocs\cooke o
ORDINANCE NO ~
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS,
APPROVING A LEASE BETWEEN THE CITY OF DENTON AND COOKE COUNTY
COLLEGE, AMENDING THE BUDGET TO APPROPRIATE FUNDS FOR BUILDING
IMPROVEMENTS, AUTHORIZING THE EXPENDITURE OF FUNDS, AND PROVIDING
FOR AN EFFECTIVE DATE
WHEREAS, Cooke County College has offered to lease part of the
Moore Building for classroom space, and
WHEREAS, the City Council believes the Lease would be
beneficial to the City, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION I That it approves the attached Lease between the
City of Denton and Cooke County College and authorizes the Mayor to
execute the Agreement on behalf of the City
SECTION II That the 1991-92 budget is amended by approving
the appropriation of $144,000 00 for payment to account number 100-
032-0002-9101 from the unappropriated fund balance of the general
fund to pay for the Tenant Improvements required to be made by the
City under the Lease This ordinance approving a budget amendment
has been approved by the affirmative vote of at least five votes of
the Councll, a copy shall be filed with the City Secretary, a copy
shall be published in the next issue of the official newspaper of
the City, and a copy shall be attached to the 1991-1992 budget, all
in accordance with the requirements of section 8 08 of the City
Charter
SECTION III That it authorizes the expenditure of funds in
accordance with the term of the Agreement
SECTION IV That this ordinance shall become effective imme-
diately upon its passage and approval~ ~
PASSED AND APPROVED this the~~ day of , 1992
BOB' CASTLEBERRY, MAYOR/ ~
/
ATTEST
JENNIFER WALTERS, CITY SECRETARY
DEBRA'A DRA~4DVITCH, CITY ATTORNEY
PAGE 2
cooke k
120 1 ld
LEASE BETWEEN THE CITY OF DENTON AND
COOKE COUI'TY COLLEGE FOR CLASSROOM AND OFFICE SPACE AT
601 EAST HICKORY, DENTON, TEXAS
This lease of improved real property is made between the City
of Denton, a Texas municipal corporation, and Cooke County College
The partles agree as follows
ARTICLE I DEFINITIONS
i 01 City The City of Denton, Texas
I 02 Ha~&rdous Substance Any toxic, ignitable, reactive or
corrosive substance regulated by any federal, state or local law or
regulation, including materials and substances defined as "hazard-
ous waste," "extremely hazardous waste," or as a "hazardous sub-
stance" under those laws or regulations
i 03 Lease This lease agreement
i 04 Le&sed Property The approximately 12,000 square feet
of enclosed space located on the second floor of the Moore Building
leased to Cooke, as shown in Exhibit A, attached to and incorporat-
ed into this Lease by reference
i 05 Cooke Cooke County College
1 06 Moore Building The building owned by the City located
at 601 East Hickory, in the City of Denton, Texas, in which the
Leased Property is located
i 07 Parking Area The employee, student, and guest parking
area designated by the City for Cooke's use, as shown in Exhibit B,
attached to and incorporated into this Lease by reference
i 08 Tenant Improvements The physical alterations and
improvements to be made to the Leased Property by the C~ty in
accordance with the plans furnished to Cooke prior to execution of
this Lease
ARTICLE II LEASED PROPERTY,
COMMON AREAS AND PARKING
2 01 Leased Property City leases to Cooke and Cooke leases
from the City the Leased Property The City does not warrant the
square footage of the Leased Property and neither party shall be
liable to the other for any reimbursement, reduction, increase, or
adjustment in rental payments because the square footage of the
Leased Property is more or less than 12,000 square feet
PAGE 1
2 02 Use of Leased Property Cooke may use the Leased Pro-
perty for office and classroom use and for no other use unless it
first obtains the City's written consent Cooke shall not do or
permit anything to be done in or about the Leased Property that
will obstruct or interfere with other persons' rights occupying the
Building Cooke shall comply with any law, statute, ordinance,
rule or regulation affecting the Leased Property
Z 03 common Areas Cook shall have the right of access to
the Leased Property by the use of the common area shown in Exhibit
A Cooke may use other hallways, stairways, exits, sidewalks, and
other common areas as permitted or designated by the City in
accordance with any written regulations made by the City,
2 04. Parking Area The City shall furnish to Cooke vehicular
parking space for Cooke's employees, students, and guests The
City shall provide Cooke with a minimum of 100 parking spaces The
location of the designated parking may be changed from time to time
by the City on prior written notice to Cooke The City may adopt
and enforce written regulations regarding the use of the parking
areas provided to Cooke The city shall provide lighting for the
parking area as agreed to by the parties
2 05 Hasardous Bubstances Except for pesticides dispensed
in accordance wlth Federal and State laws or regulations, Cooke
shall not cause or permit any Hazardous Substance to be used
stored, generated, or disposed of on the Leased Property without
the City's written consent
ARTICLE III TERM AND TERMINATION
3 01 Term This Lease shall begin on June 5, 1992, and
shall terminate on June 4, 2002, unless earlier terminated as pro-
vlded in this Lease
3 0Z Termination Except for terminatIon for a breach of
th~s Lease, this Lease may only be terminated, by either party
giving SlX (6) months prior written notice to the other, in the
following cases (a) By mutual agreement of the parties, or (b) The
suspension of College funding by the State of Texas, specifically
covering the curriculum and extended facilities that are the
subject matter of this Lease
3 05 Reimbursement for Tenant Improvements The City is to
be reimbursed through rental payments for its expense in making the
Tenant Improvements It is contemplated that after four (4) years
the city will have received complete reimbursement for the cost of
the Tenant Improvements and any termination after four (4) years
will not require additional payment by cooke If the Lease is
terminated during the first four (4) years and the total rental
payments have not covered the City's cost of the Tenant Improve-
ments, Cook shall reimburse the City the amount by which the City's
PAGE 2
cost of the Tenant Improvements exceeds the total rental payments
made by Cooke
ARTICLE IV RENTALS AND PAYMENTS
4 01. Beg~nning Rent Cooke shall pay to the City monthly
rentals (based on an annual rate of $7 00 per square foot) of
$7,000 00 per month through July 31, 1996, for the Leased Property
4 02 ~Justsd Rental. Beginning on August 1, 1996, and to
the end of the Lease term, Cooke shall pay to the City monthly
rentals (based on an annual rate of $7 50 per square foot) of
$7,500 00 per month, for the Leased Property
4 03 Starting Date for Monthly Rent If the Tenant Improve-
ments are not completed so that the Leased Property is ready for
occupancy on or before August 24, 1992, Cooke's first monthly
rental payment shall not be due until January 1, 1993 If the
Leased Property is ready for occupancy on or before August 24,
1992, the first monthly rental payment shall be due on the City's
first business day, fifteen days following the date the City gives
written notice to cooke that the Tenant Improvements are complete
4 04 Payments Rent shall be paid monthly, in advance, with-
out notice, demand, counterclaim, set-off, or abatement Each
successive monthly rental payment shall be due on the same business
day of the same week as the f~rst monthly rental payment Rent
shall be paid at the Finance Department of the City, Accounts
Receivable, 215 E McKlnney, Denton, Texas, 76201, unless Cooke is
notified otherwise
4 04 Due Date Ail rent paid by Cooke after the tenth (10th)
day of the due date will be delinquent and shall include an add1~
tlonal monetary penalty equal to five percent (5%) of the rental
amount due, or the maximum lawful rate of interest permitted by
law, if less than five percent (5%)
4 05 Destruotion of Leased Property If the Leased property
is damaged by fire or other casualty, rent shall be abated in pro-
portion to the portion of the Leased Property rendered untenantable
until repairs of the Leased Property are completed If more than
fifty percent (50%) of the Leased Property becomes untenantable due
to fire or other casualty, either party may terminate this Lease by
giving written not.ce to the other Other than the rental abate-
ment, no damages, compensation, or claims shall be payable by the
City to Cooke for loss of the use of all or part of the Leased
Property, Cooke's personal property, or any inconvenience, loss of
business or profit, or annoyance arising from the repair or recon-
struction of the Leased Property
PAGE 3
ARTICLE V. UTILITIES AND SERVICES
5 01 Utilities The City shall arrange for and pay for cold
water and sewer service to the Leased Property Cooke shall
arrange for and pay for electricity, natural gas, solid waste
removal, telephone service and any other utility services for the
Leased Property
5 02 Heating and cooling As part of the Tenant Improve-
ments, the City will furnish a new air conditioning and heating
system for the Leased Property in good operating condition After
Cooke occupies the Leased Property, the air conditioning and heat-
lng system shall be maintained and repaired by Cooke at Its cost
The City shall assign to Cooke any assignable warranties on the
heating and cooling equipment installed by the City
5 03 Janitorial Service Cooke shall provide for janitorial
services for the Leased Property and, until City employees perma-
nently occupy the Moore Building, the common areas inside the Moore
Building used by Cooke The City shall maintain the areas outside
the Moore Building, including parking areas
5 04 Elevator Service After occupancy of the Leased Pro-
perty, the elevator providing access to the Leased Property shall
be under Cooke's exclusive operation and control Denton shall
make any repairs necessary to put the elevator in good operating
condition on the date the City gives notice to Cooke that the
Tenant Improvements are complete After that date, Cooke shall
maintain and repair the elevator as necessary to keep it in proper
working condition
ARTICLE VI IMPROVEMENTS, ALTERATIONS AND REPAIRS
6 01 Tenant Improvements
(a) The City shall pay for the Tenant Improvements for the
Leased Property, subject to a maximum expenditure of One Hundred
Forty-four Thousand Dollars ($144,000 00) (being a maximum
expenditure of Twelve Dollars ($12 00) per square foot for the
12,000 square feet of leased space) To provide for the Tenant
Improvements, the City shall solicit sealed competitive bids in
compliance with State law After the bids are opened, the City
Manager or his designee shall notify Cooke in writing of the bid it
will recommend to the City Council as being the lowest responsible
bid for the Tenant Improvements and the date of the scheduled
award
(b) If the recommended bid exceeds $144,000 00, Cooke shall,
at least five (5) days prior to the date scheduled for the award of
the contract
(1) Terminate this lease by giving the City written notice,
or
PAGE 4
(2) Give the City written notice of the Tenant Improve-
ments, if any, it wants deleted from the contract, and
(3) Pay to the City the amount, if any, by which the
recommended bid exceeds $144,000 00, after any deletions
are made, and should Cooke fall to timely make the payment
required herein, the City may immediately terminate this
Lease without notice or liability to Cooke
(c) The Tenant Improvements shall be provided in accordance
with the following schedule
(1) The City shall send out bid invitations by June 3,
1992
(2) Bids shall be opened by June 17, 1992
(3) The contract shall be awarded by June 23, 1992
(4) The contract awarded shall specify that the Tenant
Improvements shall be completed by the contractor
within fifty-one (51) days after the date the
contract is awarded
(d) The City shall supervise the construction of the Tenant
Improvements Upon completion, the Tenant Improvements shall
conform to all City building codes and State and Federal laws and
regulations, llcludlng requirements for access and use by disabled
persons The City shall use its best efforts to require the con-
tractor to timely complete the Tenant Improvements, but the City
shall not be liable to Cooke for any claims, loss, or damages, and
Cooke shall not have the right of termination, because of the con-
tractor's default or delay in constructing or completing the Tenant
Improvements The cost of any changes requested by Cooke after the
award of the bid shall be at Cooke's expense The City shall noti-
fy Cooke in writing when the Tenant Improvements are complete
6 02 Roof and Exterior Repairs The City shall keep the roof
and exterior walls of the Leased Property in good repair, excluding
the replacement of glass, but the C~ty shall not be liable to Cooke
for lost revenues, profits, damages, claims, or losses of any kind,
including loss or damage to Cook's personal property because of the
City's failure to make timely or adequate repairs
6 03. Interior Repairs. Cooke shall keep the Leased Property
and all fixtures and improvements therein in good condition and
repair
$ 04 Additional Alterations After completion of the Tenant
Improvements, Cooke shall have the right to make additional alter-
atlons to the Leased Property, ~f first approved in writing by the
City In making alterations, Cooke shall comply with all Federal,
State, and local laws, regulations, or ordinances, including the
PAGE 5
issuance of permits and the payment of fees Any alterations of
the Leased Property mandated by any Federal, State, or local law or
regulation enacted during this Lease, shall be done at Cooke's
expense All alterations shall be done so that no liens attach to
the Leased Property Alterations shall belong to the City, without
compensation to Cooke, upon expiration or termination of this
Lease
6 05 city Approval of Plans, Compliance with Laws Any
provision of this Lease providing for the City's approval or
disapproval of alterations to the Leased Property applies to the
City acting in the capacity of the landlord or owner of the Leased
Property and shall not apply to the City's review, approval, or
disapproval of any plans for alterations when acting in its capac-
ity as a governmental entity administering and enforcing building
codes or other laws or regulations
6 06 Signs Cooke shall not post any signs on the Leased
Property without the approval of the City as landlord Any signs
approved by the City as landlord shall comply with the City's ordi-
nance regulating signs
ARTICLE VII SECURITY
7 01 Cooke Responsible for Security The City makes no
warranties or representations that the Leased Property, the area
outside the Leased Property, the common areas, the Parking Areas,
or any other City property used by Cooke's employees, students, and
guests under this Lease, are safe and secure from the criminal acts
of any person Cooke, and not the City, shall be responsible for
providing any guards, fences, or other security devices, including
additional lighting, that may be required to protect Cooke's em-
ployees, students, or guests, or their property, from the criminal
acts of any person, while they are on or making use of City pro-
perty under this Lease
7 02 Use of Security Devices Cooke may Install additional
lighting, provide security fencing, signs, retain security guards,
or provide other security measures or devices to protect its em-
ployees, students, or guests, or their property, from the criminal
acts of any persons, on or about the Leased Property, the property
outside the Leased Property, the common areas, the Parking Area, or
any other City property used by Cooke's employees, students, and
guests, under this Lease Any security device provided by Cooke
that requires attachment to or the alteration of the Leased Pro-
perty or the City's property must be approved by the City in writ-
lng prior to installation
PAGE 6
ARTICLE VIII INSURANCE AND INDEMNITY
8 01. Insuranoe During this Lease, Cooke shall maintain
(1) Comprehensive general liability insurance insuring Cooke
agalnst any liability arising out of the use or occupancy of
the Leased Property, the area outside the Leased Property, the
common areas, elevators and stairwells, the Parking Area, and
any other property used by Cooke, its employer's, students, and
guests The insurance shall be in an amount not less than One
Mllllon and No/100 Dollars ($1,000,000 00), combined single
limit for injury to, or death of one or more persons and for
damage to tangible property, in any one occurrence
(2) Standard form property Insurance insuring against the
perils of fire, storm, and other casualty This policy shall
cover all property owned by Cooke located on the Leased Pro-
perty, including furniture, fixtures, and other personal
property in the amount of the full replacement value of the
property
The pollcles shall provide for a minimum of thirty (30) days
written notice to the Clty prior to the effective date of any
cancellation or lapse and be issued by a company authorized to do
business in the State of Texas A copy of the policies shall be
provided to the City
8 02 Lessor's General Liability Insurance Durlng each year
of the term of this Lease, the City shall obtain lessor's general
liability insurance coverage in the same policy amount as the com-
prehensive gen=ral liability policy required by Cooke in this sec-
tlon, to protect the City against claims arising from any act or
occurrence related to the use of the Leased Property or the City's
property under this Lease The City shall bill Cooke and Cooke
shall pay to the City annually the cost of obtaining the policy
within thirty days of the date the City bills Cooke
ARTICLE IX TAXES
9 01. Taxes Cooke shall pay before delinquency, any and all
taxes, fees or other assessments levied, imposed or assessed
against the Leased Property, Cooke's leasehold interest, equipment,
furniture, fixtures and personal property, during this Lease
X CANCELLATION
10 01 Default by Cooke If Cooke falls to comply with any
term of this Lease, the City may give Cooke written notice of the
breach and request Cooke to correct the breach Should Cooke fall
to correct the breach within thirty (30) days following receipt of
the notice, the City has the right to terminate this Lease by
giving Cooke written notice of termination
PAGE 7
10.02 Default by City. If the City falls to comply with any
of the terms of this Lease, Cooke may give the City written notice
of the breach and request the City to correct the breach Should
the City fall to correct the breach within thirty (30) days fol-
lowing receipt of the notice, Cooke has the right to terminate this
Lease by giving the City written notice of termination
10 03 Removal of Personal Property Upon termination of this
Lease, Cooke may remove its personal property if removal does not
cause damage to the Leased Property Cooke shall remove all
personal property from the Leased Property wlthln ten (10) days
after termination If Cooke falls to remove Its personal property,
the City may retain possession of the property or sell the property
and keep the proceeds
10 04 Repairs Upon termination of the Lease, Cooke shall
leave the Leased Property in a neat and clean condition and shall
repair any damage to the City's fixed improvements caused by the
removal of Cook's personal property
10 05. No Waiver The failure of the City to declare this
Lease terminated upon Cook's default or the City's acceptance of
rentals after default shall not waive the City's right to cancel
this Lease for a later default
XI MISCELLANEOUS PROVISIONS
11 01 Entire Agreement This Lease is the entire understand-
lng of the parties and supersedes all other agreements between the
parties covering the subject matter hereof Any modification of
this Lease shall be in writing and signed by both parties
11 02 Subletting or ~ssignment Cooke may not rent or sub-
lease the Leased Property or assign this Lease without the prlor
written consent of the City
11 O~ Suooessors and Assigns Ail provisions of this Lease
shall be binding upon the parties and their legal representatives,
successors or assigns
11 04. Severability If any provision of this Lease is
declared void or illegal by any court, the remaining provisions
shall continue In effect as nearly as possible in accordance with
the original intent of the parties
11 05 Notioe Any notice given by one party to the other
under this Lease shall be in writing and shall be sent by prepaid
registered mall, return receipt requested, as follows
PAGE 8
To the City To Cooke
City Manager President
City of Denton Cooke County College
215 E McKinney 1525 West California
Denton, Texas 76201 Galnesvllle, Texas 76240
Notices shall be deemed to have been received on the date shown
on the receipt, if sent by certified mall, or on the date received,
if delivered by hand
11 06 Headings The headings are intended for convenience of
reference only and do not define or limit the scope or meaning of
any provision of this Lease
11 07. Cost Whenever this Agreement requires or allows a
party to perform an act, it shall be done at that party's cost, if
any, unless stated otherwise
11 08. Authority Each party represents to the other that
they have the lawful authority to enter into this Lease
WITNESS WHE~.OF,.the parties have executed this Lease the
day of __~~, 1992
CITY OF DENTON, TEXAS, THE CITY
ATTEST BOB CASTLEBERRY, MAY~ ~
JENNIFER WALTERS, CITY SECRETARY
COOKE COUNTY COLLEGE
BY BU~ P~ESIDENT
PAGE 9