1989-0632683L
NO
AN ORDINANCE APPROVING AN AGREEMENT PROVIDING FOR THE LEASE OF
OFFICE SPACE AT 1607 EAST MCKINNEY STREET, AND DECLARING AN
EFFECTIVE DATE
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION I That the City Council of the City of Denton
hereby approves an office lease agreement between the City and
First State Bank of Denton for office space at 1607 East
McKinney Street in accordance with the terms thereof, said
agreement being attached hereto
SECTION II That this ordinance shall become effective
immediately upon its passage and approval
PASSED AND APPROVED this the/~~ ay of 61~ 1989
RAY ST TWENS, AYOR
ATTEST
NIFE 'A TERS, CI Y S ~CRETARY
APPROVED AS TO LEGAL FORM
DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY
BY od A-) /I
2683L
THE STATE OF TEXAS §
COUNTY OF DENTON §
LEASE AGREEMENT BETWEEN
THE CITY OF DENTON AND
FIRST STATE BANK OF DENTON
This lease agreement is made
the City of Denton, Texas, a
principal offices at 215 East
("Lessee"), and First State Bank
and entered into by and between
municipal corporation with its
McKinney Street, Denton, Texas
of Denton ("Lessor")
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, office space comprising 2,013 square
feet of usable space, located on the first floor of the building
at 1607 East McKinney, Denton, Texas, and hereinafter called the
"leased premises"
ARTICLE 1
The term of this lease shall commence at 12 01 midnight on
June 1, 1989, and end at 12 00 midnight on May 31, 1990, subject,
however, to earlier termination as hereinafter more particularly
described
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
ARTICLE 2
Lessee shall pay Lessor at Box 100, Denton, Texas, as monthly
rent for the leased premises, which shall be payable on the first
day of each month, the sum of five hundred dollars and no/100
($500)
ARTICLE 3
Lessee shall use the leased premises only for the purpose of
subleasing to Grady Matheson, Wallace Lynch and Les Holland for
operating a Domino Club
ARTICLE 4
Lessee acknowledges that its acceptance of possession of the
leased premises constitutes a conclusive admission that it has
inspected the leased premises and has found them in good
condition and repair Lessee agrees to surrender the leased
premises to Lessor at the end of the lease term in the same
condition as when Lessee took possession, allowing for reasonable
use and wear and damages by act of God, including fire and storms
ARTICLE 5
Lessee shall pay for all utilities furnished the leased
premises for the term of this lease, including electricity, gas,
water, and telephone services Usual janitorial services,
including sweeping and waxing of floors, the cleaning of windows,
replacement of light bulbs or fluorescent tubes shall be
performed by Lessee
ARTICLE 6
A Lessor shall at its expense maintain only the roof,
foundation, underground or otherwise-concealed plumbing, and the
andwalls (excluding tall
structural soundness of the exterior
he all doors) of windows, window glass, plate glass, building in good repair and condition, except for reasonable wear
and tear Lessor shall be responsible for termite eradication
Lessee shall give immediate written notice to Lessor of the need
for repairs or corrections and Lessor shall proceed promptly to
make such repairs or corrections
B Lessor represents that, at the beginning date of this
Lease the plumbing, and any fire protection sprinkler system,
heating system, and air conditioning equipment are in good
operating condition
ARTICLE 7
A Lessee shall at its expense and risk maintain all other
parts of the building and other improvements on the demised
premises in good repair and condition, including but not limited
to repairs (including all necessary replacements) to the interior
plumbing (that is not concealed), windows, window glass, plate
glass, doors, heating system, air conditioning equipment, fire
protection sprinkler system, elevators, and the interior of the
building in general
B Lessee shall throughout the lease term take good care of
the building and other improvements and keep them free from waste
or nuisance, and shall deliver up the premises broom-clean at the
termination of this Lease in good repair and condition
(reasonable wear and tear and damage by fire, tornado, or other
casualty excepted)
C In event Lessee should neglect reasonably to maintain the
demised premises, Lessor shall have the right (but not the
obligation) to cause repairs or corrections to be made and any
reasonable costs therefor shall be payable by Lessee to Lessor as
additional rental on the next rental installment date
ARTICLE 8
Lessee shall not make any alterations, additions, or improve-
ments to the leased premises without the prior written consent
of Lessor Consent for non-structural alterations, additions,
or improvements shall not be unreasonably withheld by Lessor
Lessee shall have the right at all times to erect or install
furniture and fixtures provided that Lessee complies with all
applicable governmental laws, ordinances, and regulations
Lessee shall have the right to remove at the termination of this
lease such items so installed, however, Lessee shall, prior to
the termination of this lease, repair any damage caused by such
removal
ARTICLE 9
Partial destruction of the leased premises shall not render
this lease void or voidable, or terminate it except as herein
provided If the premises are partially destroyed during the
term of this lease, Lessor shall repair them, when such repairs
can be made in conformity with local, state, and federal laws and
regulations within sixty (60) days of the partial destruction
Rent for the premises will be reduced proportionately to the
extent to which the repair operations interfere with the normal
conduct of Lessee's business on the premises If the repairs
cannot be so made within the time limited, Lessor has the option
to make them within a reasonable time thereafter, not to exceed
thirty (30) days and continue this lease in effect with pro-
portional rent rebate to Lessee as provided for herein If the
repairs cannot be so made in sixty (60) days and if Lessor does
not elect to make them within the reasonable time thereafter,
either party hereto has the option to terminate this lease if
the building in which the leased premises are located is more
than one-third (1/3) destroyed, Lessor may, at Lessor's option,
terminate the lease whether the premises are damaged or not
ARTICLE 10
Lessee agrees not to assign or sublease the premises leased,
any part thereof, or any right or privilege connected therewith,
or to allow any other person, except Lessee's agents and
employees, to occupy the premises or any part thereof, without
first obtaining the Lessor's written consent Lessee's interest
in this lease is not assignable by operation of law, nor is any
assignment of its interest herein, without Lessor's written
consent
Lessor specifically agrees to Lessee's sublease of the
leased premises to Grady Matheson, Les Holland and Wallace
Lynch, on behalf of the Denton Domino Club Lessee shall
incorporate the provisions of this lease in the sublease so that
same shall be binding upon sublessees
ARTICLh 11
Lessor shall pay and fully discharge all taxes, special
assessments, and governmental charges of every character imposed
during the term of this lease on the leased premises or any part
thereof
ARTICLE 12
Lessee shall have the right to erect signs on any portion of
the leased premises including, but not limited to, the exterior
walls of the building Lessee shall remove all signs at the
termination of this lease, and shall repair any damage and close
any holes caused by such removal
ARTICLE 13
Lessee shall permit Lessor and their agents to enter into
and upon the leased premises at reasonable times for the purpose
of inspecting the same or for the purpose of maintaining or
making repairs or alterations to the building
ARTICLE 14
If during the term of this lease or any extension or renewal
thereof, all of the leased premises should be taken for any
public or quasi-public use under any governmental law, ordinance,
or regulation, or by right of eminent domain, or should be sold
to the condemning authority under threat of condemnation, this
lease shall terminate and the rent shall be abated during the
unexpired portion of this lease, effective as of the date of the
taking of said premises by the condemning authority
If less than all of the leased premises shall be taken for
any public or quasi-public use under any governmental law,
ordinance, or regulation, or by right of eminent domain, or
should be sold to the condemning authority under threat of
condemnation, this lease shall not terminate but Lessor shall
forthwith at their sole expense, restore and reconstruct the
building and other improvements, situated on the leased
premises, provided such restoration and reconstruction shall
make the same reasonably tenantable and suitable for the uses
for which the premises are leased The rent payable hereunder
during the unexpired portion of this lease shall be adjusted
equitably
Lessor and Lessee shall each be entitled to receive and
retain such separate awards and portions of lump sum awards as
may be allocated to their respective interests in any condem-
nation proceedings The termination of this lease shall not
affect the right of the respective parties to such awards
ARTICLE 15
Lessor will not permit any mechanics' lien or liens to be
placed upon the premises or the building or improvements thereon
during the term hereof, and in case of the filing of any such
lien Lessor will promptly pay same If default in payment
thereof shall continue for twenty (20) days after written notice
thereof from Lessee to Lessor, the Lessee shall have the right
and privilege at Lessee's option of paying the same or any
portion thereof without inquiry as to the validity thereof, and
any amounts so paid, including expenses and interest, shall be
an indebtedness hereunder due from Lessor to Lessee and shall be
repaid to Lessee immediately on rendition of bill therefor,
together with interest at nine (9%) percent per annum until
repaid
ARTICLE 16
Lessor is expressly given the right to assign any or all of
its interest under the terms of this lease, provided, however,
that Lessor agrees to give thirty (30) days written notice to
Lessee of such assignment including the name and mailing address
of such assignee
ARTICLE 17
If Lessee shall allow the rent to be in arrears more than
fifteen (15) days after written notice of such delinquency, or
shall remain in default under any other condition of this lease
for a period of thirty (30) days after written notice from
Lessor, Lessor may at its option, with notice to Lessee, termi-
nate this lease and take possession of said premises without
being deemed guilty of any manner of trespass, and relet the
premises or any part thereof, for all or any part of the
remainder of said term, to a party satisfactory to Lessor, and
at such monthly rental as Lessor may with reasonable diligence
be able to secure Should Lessor be unable to relet after
reasonable efforts to do so, or should such monthly rental be
less than the rental Lessee was obligated to pay under this
lease, or any renewal thereof, plus the expense of reletting,
then Lessee shall pay the amount of such deficiency to Lessor
ARTICLE 18
If Lessor defaults in the performance of any term, covenant,
or condition required to be performed by Lessor under this
agreement, Lessee may elect either one of the following
(a) After not less than fifteen (15) days notice to Lessor,
Lessee may remedy such default by any necessary action,
and in connection with such remedy may pay expenses and
employ counsel, all sums expended or obligations incurred
by Lessee in connection therewith shall be paid by Lessor
to Lessee on demand, and on failure of such reimburse-
ment, Lessee may, in addition to any other right or
remedy that Lessee may have, deduct the costs and
expenses thereof from rent subsequently becoming due
hereunder, or
(b) Elect to terminate this agreement on giving at least
thirty (30) days notice to Lessor of such intention,
thereby terminating this agreement on the date
designated in such notice
ARTICLE 19
Should Lessee, or any of its successors in interest, hold
over the premises, or any part thereof, after the expiration of
the term of this lease, unless otherwise agreed in writing, such
holding over shall constitute and be construed as tenancy from
month to month only, at a rental equal to the rent payable for
the last month of the term of this lease The inclusion of the
preceding sentence shall not be construed as Lessor's consent
for Lessee to hold over
ARTICLE 20
All notices provided to be given under this agreement shall
be given by certified mail or by hand delivery, addressed to the
proper party, at the following address
LESSOR LESSEE
First State Bank Lloyd V Harrell, City Manager
P 0 Box 100 215 East McKinney
Denton, Texas 76201 Denton, Texas 76201
Attention
ARTICLE 21
Lessee shall not create any openings in the roof or exterior
walls, nor make any alterations, additions, or improvements to
the demised premises without prior written consent of Lessor
Consent for non-structural alterations, additions, or improve-
ments shall not be unreasonably withheld by Lessor Lessee
shall have the right at all times to erect or install shelves,
bins, machinery, air conditioning or heating equipment, and
trade fixtures, provided that Lessee complies with all
applicable governmental laws, ordinances, and regulations
Lessee shall have the right to remove at the termination of this
Lease such items so installed, provided Lessee is not in
default, however Lessee shall prior to the termination of this
Lease repair any damage caused by such removal
All alterations, additions, or Improvements made by Lessee
shall become the property of Lessor at the termination of this
Lease, however, Lessee shall promptly remove, if Lessor so
elects, all alterations, additions, and improvements, and any
other property placed in the premises by Lessee, who shall
repair any damage caused by such removal
ARTICLE 22
Lessee shall have the right to erect signs on the exterior
walls of the building, securely attached to and parallel to
said walls, subject to applicable laws and deed restrictions
Lessee shall not erect any signs other than customary trade
signs identifying its business, and shall not erect any signs on
the roof or paint or otherwise deface the exterior walls of the
building Lessee shall remove all signs at the termination of
this Lease, and shall repair any damage and close any holes
caused by such removal
ARTICLE 23
A If Lessee should change its operations in the demised
premises subsequent to its initial use and occupancy, and
thereby cause an increase in the premium for the fire and
extended coverage insurance policy carried by Lessor (the
premium for said policy having been based on such initial use
and occupancy of Lessee), the amount of such increase in net
annual premium shall be paid to Lessor by Lessee as additional
rental annually upon demand and presentation of written evidence
by Lessor, whether Lessor has consented to such change of
operations or not The foregoing shall not apply to any
increase in premium resulting from any cause beyond the control
of Lessee
B Lessee shall not permit any operation to be conducted in
the demised premises that would cause suspension or cancellation
of the fire and extended coverage insurance policy which Lessor
agrees to maintain
C Any insurance which may be carried by Lessor or Lessee
against loss or damage to the building and other improvements
situated on the demised premises shall be for the sole benefit
of the party carring such insurance and under its sole control
ARTICLE 24
Lessor and its authorized agents shall have the right to
enter the demised premises during normal working hours for the
following purposes (a) inspecting the general conditions and
state of repair of the premises, (b) the making of repairs
required of Lessor, (c) the showing of the premises to any
prospective purchaser, (d) or for any other reasonable purpose
If Lessee shall not have renewed or extended this Lease
prior to the final 30-day period of the lease term, Lessor and
its authorized agents shall have the right to erect on or about
the demised premises a customary sign advertising the property
for lease or for sale During said 60-day period Lessor and its
authorized agents shall have the right to enter the demised
premises during normal working hours for the showing of the
premises to prospective Lessees or purchasers
ARTICLE 25
Should Lessee, or any of its successors in interest, hold
over the demised premises, or any part thereof, after the
expiration of the term of this Lease unless otherwise agreed in
writing, such holding over shall constitute and be construed as
tenancy from month to month only, at a monthly rental equal to
the rent paid for the last month of the term of this Lease
ARTICLE 26
Lessor warrants that it has full right and power to execute
and perform this Lease and to grant the estate demised herein
and that Lessee, on payment of the rent and performing the
covenants herein contained, shall peaceably and quietly have,
hold and enjoy the demised premises during the full term of this
Lease and any extension or renewal hereof, provided, however,
that Lessee accepts this Lease subject and subordinate to any
recorded mortgage, deed of trust, or other lien presently
existing upon the demised premises Lessor is hereby
irrevocably vested with full power and authority to subordinate
Lessee's interest hereunder to any mortgage, deed of trust, or
other lien hereafter placed on the demised premises, and Lessee
agrees upon demand to execute such further instruments
subordinating this Lease as Lessor may request, provided such
further subordination shall be upon the express condition that
this Lease shall be recognized by the mortgagee and that the
rights of Lessee shall remain in full force and effect during
the term of this Lease so long as Lessee shall continue to
perform all of the covenants of this Lease
ARTICLE 27
Provided that at the end of the primary term of this Lease
Lessee not be in default of any term, condition or covenant
contained in this Lease, Lessee (but not any assignee or
sublessee) shall have the right and option to renew this Lease,
by written notice delivered to Lessor no later than 30 days
prior to the expiration date of the primary term, for the
additional term of one (1) year, under the same terms,
conditions, and covenants contained herein, except
A Lessee shall have no further renewal options unless
expressly granted by Lessor in writing, and
B The rental for the renewal term shall be based on the
then prevailing rental rates for properties of equivalent
quality, size, utility and location, with the length of the
lease term, and credit standing of the Lessee herein, to be
taken into account
C Upon notification from Lessee of the exercise of this
renewal option, Lessor shall within 15 days thereafter notify
Lessee in writing of the proposed rental for the renewal term,
Lessee shall within 15 days following receipt of same notify
Lessor in writing of the acceptance or rejection of the proposed
rental In event of rejection by Lessee, the renewal rental
shall be determined as follows
Within 15 days following notification of rejection, Lessor
and Lessee shall each appoint a disinterested and qualified
appraiser If these two appraisers cannot agree upon a renewal
rental within 30 days following their appointment, the two
appointees shall forthwith select a third disinterested and
qualified appraiser, and the decision of any two appraisers
shall be binding Notification in writing of this decision
shall be made by the appraisers to Lessor and Lessee shall be
first approved by the then President of the Denton Board of
Realtors as qualified to determine rental applicable to the
demised premises Lessor and Lessee shall bear the expense of
the appraiser appointed by each, and the expense of the third
appraiser shall be shared equally by both parties
ARTICLE 28
Lessee may, prior to the execution of this lease, apply for
a Certificate of occupancy to be issued by the municipality in
which the demised premises are located Lessor represents that
all plumbing and electrical wiring installed in the demised
premises are in proper condition to permit Lessee to obtain a
Certificate of Occupancy Nothing herein contained shall
obligate Lessor to install any additional electrical wiring,
plumbing or plumbing fixtures which are not presently existing
in the demised premises, or which have not been expressly agreed
upon by Lessor in writing
ARTICLE 29
(a) This agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective heirs,
executors, administrators, legal representatives, successors,
and assigns where permitted by this agreement
(b) 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 Denton County,
Texas
(c) In case any one or more of the provisions contained in
this 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 pro-
vision thereof and this agreement shall be construed as if such
invalid, illegal, or unenforceable provision had never been
contained herein
(d) 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
(e) 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
(f) 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 given in addition
to any other rights and parties may have by law, statute, ordi-
nance, or otherwise
(g) No waiver by the parties hereto of any default or breach
of any term, condition, or covenant of this lease shall be deemed
to be waiver of any other breach of the same or any other term,
condition, or covenant contained herein
(h) In the event Lessor or Lessee breaches any of the terms
of this agreement whereby the party not in default employs
attorneys to protect or enforce its right hereunder and prevails,
then the defaulting party agrees to pay the other party
reasonably attorneys' fees so incurred by such other party
(1) Neither Lessor nor Lessee shall be required to perform
any term, condition, or covenant in this lease so long as such
performance is delayed or prevented by force ma7eure, which shall
mean acts of God, strikes, lockouts, material or labor restric-
tions by any governmental authority, civil riot, floods, and any
other cause not reasonably within the control of Lessor or Lessee
and which, by the exercise of due diligence, Lessor or Lessee is
unable, wholly or in part, to prevent or overcome
(J) Time is of the essence of this agreement
IN WITNESS WHEREOF, the under jgn~~d Lessor a Lessee hereto
execute this agreement as of the 2(~^~' day of , 1989
~Ir
CITY O DENTON, LESSE FIRST ST' BANK OF ENTONJ, LESSOR
BY N
LO HARRELL
CITY MANAGER
Title
APPROVED AS TO LEGAL FORM
DEBRA ADAMI DRAYOVITCH,
CITY ATTORNEY
BY G, CC _