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2003-218ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON APPROVING A LEASE AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND THE DENTON SOCCER ASSOCIATION PERTAINING TO CONSTRUCTION, OPERATION AND USE OF A NEW BUILDING AT THE NORTH LAKES SOCCER COMPLEX; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City is the owner and operator of a municipal park known as North Lakes Park which is located in the City of Denton, Denton County, Texas (the "Park"); and WHEREAS, the Denton Soccer Association (the "Association") provides a valuable public parks and recreation service by providing youth soccer activities for the citizens of the City; and WHEREAS, the City's Park and Recreation Department has a long standing relationship with the Association in coordinating such youth soccer activities to obtain the maximum benefit for the recreational needs of the citizens of the City; and WHEREAS, the Association has offered to build and operate, at its own expense, a building at the Park's soccer complex to be used jointly by the City and the Association to provide parks and recreational services to the public; and WHEREAS, the City and Association desire to enter into a Lease Agreement in substantially the same form as the agreement attached hereto and made a part hereof by reference (the "Agreement"); and WHEREAS, the City Council finds that the Agreement is in the public interest; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings and recitations contained in the preamble of this ordinance are incorporated herein by reference. SECTION 2. The City Council of the City of Denton hereby approves the Agreement and authorizes the City Manager, or his designee to execute it on behalf of the City of Denton and to carry out the City's rights and duties under the Agreement including the expenditure of funds provided for in the Agreement. SECTION 3. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 2003. zl"t~Aj' EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HER BY: LEASE AGREEMENT FOR CITY PARK FACILITIES This agreement is made and entered into by and between the City of Denton, Texas, a home rule municipality (the "City"), and Denton Soccer Association, a Texas non-profit corporation (the "Association'), as of the Effective Date as hereinafter provided. WHEREAS, the City is the owner and operator of a municipal park known as North Lakes Park which is located in the City of Denton, Denton County, Texas (the "Park"); and WHEREAS, the Association provides a valuable public parks and recreation service by providing youth soccer activities for the citizens of the City; and WHEREAS, the City's Park and Recreation Department (the "Department") has a long standing relationship with the Association in coordinating such youth soccer activities to obtain the maximum benefit for the recreational needs of the citizens of the City; and WHEREAS, the Association has offered to build and operate, at its own expense, a building (the "Building") at the soccer complex at the location shown on Exhibit "A" attached hereto and made a part hereof by reference (the `Building Area") to be used jointly by the City and the Association to provide parks and recreational services to the public; and WHEREAS, the City and Association have entered into this Agreement to set forth the terms and conditions of the construction, operation and use of the Building; Now, therefore, in consideration of the mutual covenants contained herein the sufficiency of which is hereby acknowledged, the parties agree as follows: 1. Lease Term. Subject to the terms and conditions contained herein, the City leases to the Association the Building Area for a term of 30 years commencing on the Effective Date (the "Primary Term"). After the Primary Term the Association at its option may lease the Building Area for two successive 10 year terms on the same terms and conditions as the Primary Term. In order to exercise its option the Association is not required to take affirmative action; however, if the Association does not desire to exercise its option, written notice of such intent not to exercise its option must be given to the City at least 90 days prior to the expiration of the Primary Term or ten 10 year extension, as the case may be. After the Building is constructed the Building Area shall be reduced to the size of the foot print of the Building. 2. Consideration. The consideration for the lease shall be as follows: a. The Association shall construct, operate, and maintain the Building as provided herein at the Association's expense, except as provided herein; and b. The Association shall continuously provide during the term of this Agreement and any extension thereto, youth soccer activities in Denton for the public at the same level or greater than it currently provides; and c. The Association shall comply with all other terms and conditions contained in this Agreement. 3. Construction of Building. No later than six months after the Effective Date the Association shall begin construction of the Building and shall complete construction of the Building no later than August 31, 2004. The Building shall be a minimum of 3,200 square feet, which will include office space (the "Office Space"), storage space ("Storage Space"), meeting area (the "Meeting Area"), restrooms and concession area as generally depicted on the schematic drawing attached hereto and made a part hereof by reference as Exhibit "B". Construction activities shall be coordinated with City Park maintenance operations to insure that construction activities do not unreasonable interfere with Park activities. During construction activities the Association and its contractor may use portions of the Park adjacent to the Building Area that are reasonable necessary to complete construction of the Building. After construction is completed the Association shall cause such area to be restored to the same condition that it was in prior to construction. Prior to commencing construction of the Building the Association shall comply with the following: a. Provide the City with a complete set of plans and specifications for the Building (the "Plans"), which must be reviewed and approved by the City prior to construction. The Building shall be constructed in accordance with the approved Plans. The City reserves the right to reject or require modifications to the Plans if in its sole opinion the Plans are deficient in any way or do not reflect a Building that is suitable for the Park. b. Provide the City with a complete copy of the Construction Contract with the construction contractor (the "Construction Contract") prior to its execution, which must be reviewed and approved by the City prior to construction. The Construction Contract will provide that the City is a third party beneficiary and will provide for insurance that meets the Insurance Requirements set forth in Section 8 of the this Agreement but with the additional requirement for builder's risk insurance covering the full value of the Building. Because the Building Area is public property a performance bond and payment bond in a form approved by the Page 2 City shall be required in the full amount of the Construction Contract price with the Association and City as co-payees. 4. Use. The Building shall be the sole property of the City. During the term of this Agreement and any extension thereto, the Association shall have use of the Building for any soccer activities (the "Permitted Uses"). The Permitted Uses are subject to the following: a. The Association shall have exclusive use of the Office Space except for reasonable inspection by the City upon reasonable notice to the Association. b. The Association shall have exclusive use of the Storage Space except for a portion of the Storage Space having exterior access (the "City Storage"). The City Storage shall be an area within the exterior accessed Storage Space that is separated from the Association's Storage Space by a cage or other mutually agreed upon separation. Only authorized City employees, contractors or agents will have access to the City Storage. The City Storage Space may be used only for City soccer related items, materials and supplies. C. The Association shall have primary use of the concession area. The City may use the concession area only at times that are not scheduled for Association use and only upon advanced written notice to the Association. d. The public access restrooms shall be open to the City, Association and general public at all times. C. The Association shall have primary use of the Meeting Area. The City may use the Meeting Area for park and recreation activities a minimum of 10 times per year. The dates and times for such use shall be scheduled for dates and times when the Meeting Area is not in use by the Association in accordance with an annual schedule to be determined by City's Parks and Recreation Director (the "Director") and the Association's President (the "President"). Once the annual schedule is determined it may be amended by mutual agreement of the Director and President. An authorized City employee shall be present during the City's use of the Meeting Area. 5. Additional Association Responsibilities. Throughout the term of this Agreement the Association shall be responsible for the following: a. routine repair and maintenance of the Building; and b. payment of all utilities serving the Building; and Page 3 C. provide furniture, equipment and other furnishings for the Building; further it is agreed by the parties that all personal property provided by the Association is owned solely by the Association and does not belong to the City; and d. janitorial service for the Building; and e. provide insurance for the contents of the Building. 6. City Responsibilities. Throughout the term of this Agreement the City shall be responsible for the following: a. notwithstanding Subsection 5.a above, upon written request from the Association, and if funds are available, make repairs to the Building; and b. perform routine maintenance of the grounds around the Building consistent with maintenance of existing grounds at the Park; and c. notwithstanding Subsections 5.c and 5.d above, provide furnishings, supplies and janitorial services for City's scheduled use of the Building and all consumables for the public access restrooms; and d. provide directional signage to the Building; and e. upon completion and acceptance of the Building by the City, assume risk of loss and damage to the Building by including the Building under the City's current property loss insurance program; and f. set and collect all fees, if any, for use of the Building by non- Association users. All such revenues will belong to the City which may be used to recover costs associated with the Building, including, but not limited to, costs incurred by the Association related to management of the Building. 7. Indemnification. The Association shall indemnify, defend and hold harmless the City, its officers and employees from and against any and all claims, liability, actions, loss, damages and injuries, including death, arising out of the Association's use of the Building or resulting from the negligent act or omission of the Association, its employees, officers, volunteers, agents, contractors or invitees. 8. Insurance. Throughout the term of this Agreement, and any extension thereto, the Association shall keep in full force and effect insurance meeting the following requirements: Page 4 Tyne Amount 1. Workers' Compensation Statutory Employer's Liability $100,000 per occurrence OR Occupational Injury/Accidental $100,000 Injury Protection 2. Commercial (Public) Liability including but not limited to: Premises/Operations Independent Contractors Products/Completed Operations Contractual Liability Bodily Iniury $200,000 per person $500,000 per occurrence Property Damage $100,000 per occurrence OR $500,000 combined single limit for bodily injury and property damage (per occurrence) Business Automobile Liability to include coverage for: Owned/Leased Autos Non-Owned Autos Hired Cars $300,000 combined single limit for bodily injury and property damage (per occurrence) Within 30 days after the Effective and before construction activities begin, the Association shall provide insurance certificates to the City evidencing the above insurance requirements and the builder's risk insurance specified in Subsection 3.b from an insurance carrier or carriers that is licensed to do business in Texas and has an AM Best rating of A- or better. Such liability insurances and their certificates must: a. Name the City of Denton as an additional insured. b. Provide for 30 days advance written notice to the City of cancellation or material change. C. Provide for waiver of subrogation as against the City. 9. Liens and Encumbrances. The Association shall keep the Building Area and the Building free and clear from all liens and encumbrances. The Association may not encumber by mortgage, deed of trust or other instrument the Building, Building Area or its leasehold interest under this Agreement. 10. Assignment and Subletting. The Association may not assign or sublet its interests under this Agreement without the prior written consent of the City. 11. Involuntary Assignment and Bankruptcy. Neither this Agreement nor the Association's interest therein shall be subject to involuntary assignment, transfer, or Page 5 sale, or to assignment, transfer, or sale by operation of law in any manner, and any attempted involuntary assignment, transfer, or sale shall be void and of no effect. Without limiting the foregoing, in the event of an involuntary assignment, transfer, or sale or in the event a bankruptcy proceeding is commenced by or against the Association, such event or events shall constitute a breach of this Agreement by the Association, and at the election of the City, this Agreement and all of the Association's rights therein may be terminated. 12. Default. If the Association shall fail or neglect to observe, keep, or perform any of the covenants, terms, or conditions contained in this Agreement on its part to be observed, kept, or performed, and the default shall continue for a period of 90 days after written notice from the City to the Association setting forth the nature of the Association's default, then and in any such event, the City shall have the right at its option, on written notice to the Association, to terminate this Agreement and all of the Association's rights therein shall then cease. The City, without further notice to the Association, shall have the right to enter and take possession of the Building and the Building Area with or without process of law and to remove all personal property and all persons occupying the Building and the Building Area to the end that the City shall have exclusive possession of the Building and the Building Area. In addition, the City shall be entitled to any and all other remedies available to it in law or in equity which remedies shall be cumulative. 13. Early Termination by Association. After completion of and final acceptance of the Building by the City, the Association shall have the right to terminate this Agreement with 90 days advanced written notice to the City. As of such termination date, the Association shall not longer be responsible for any terms or conditions of the Agreement. Notice of termination does not constitute a default of this Agreement. After termination of this Agreement it is the City's intent to continue to use the Building for soccer and related park and recreation activities. 14. Notices. All notices, demands, or other writings in this Agreement provided to be given or made or sent, or which may be given or made or sent, by either party to the other, shall be deemed fully given or made or sent when made in writing and deposited in the United States mail, certified mail, return receipt requested, or when received via facsimile at the addresses or fax numbers set forth below: TO ASSOCIATION: President Denton Soccer Association P.O. Box 184 Denton, Texas 76202-0184 Fax No.: TO CITY: City Manager City of Denton Denton City Hall 215 E. McKinney Page 6 Denton, Texas 76201 Fax No. 940-349-8596 The addresses or fax nos. set forth above may be changed by providing written notice as provided above of such change. 15. Non-Waiver. A waiver by a party to this Agreement of any breach of any covenant or duty of the other party under this Agreement is not a waiver of a breach of any other covenant or duty of such party, or of any subsequent breach of the same covenant or duty. 16. Time of the Essence. Time is of the essence of this Agreement and all of its provisions. 17. Governing Law and Venue. This Agreement shall be governed by, construed and enforced in accordance with the laws of the State of Texas and is fully performable in Denton County, Texas. Exclusive venue for any suit under this Agreement shall be in Denton County, Texas. 18. Section Headings. The titles to the sections of this Agreement are solely for the convenience of the parties and shall not be used to explain, modify, simplify, or aid in the interpretation of the provisions of this Agreement. 19. Entire Agreement. This Agreement shall constitute the entire agreement between the parties. Any prior understanding or representation of any kind preceding the date of this Agreement shall not be binding upon either party except to the extent incorporated in this Agreement. 20. Modification of Agreement. Any modification of the Agreement shall be binding only if evidenced in a writing signed by each party by its authorized representative. 21. Authority to Sign. The persons signing this Agreement represent and warrant that they are authorized by their governing bodies to sign the Agreement on behalf of the City and the Authorization, respectively. The City will provide the Association a copy of the City ordinance or resolution authorizing this Agreement and the Association will provide the City with the Association resolution authorizing this Agreement. SIGNED to be effective as of the / ~ay of 2003 (the "Effective Date"). Page 7 CITY-0PnE17WN, TEXAS Michael A. G City Manager ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO FORM: HERBERT L. BI~OUTY CITY ATTORNEY BY: DENTON SOCCER ASSOCIATION BY:0gm.'1x'7d"'m"i Jane Malone President Page 8 ACKNOWLEDGMENT STATE OF TEXAS COUNTY OF DENTON This instrument is acknowledged before me, on this 0day of , 2003 by Michael A. Conduff, City Manager of the City of Denton, Texas, on 166half f said city. zv~ ES-1."'o-1- JN xas es ~ C• No y Public in and for the State of Texas ACKNOWLEDGMENT STATE OF TEXAS COUNTY OF DENTON ih This instrument is acknowledged before me, on this AT day of 2003 by Jane Malone, President of the Denton Soccer Association, on behalf said Association. Notary Public in d for the State of Texas Page 9 Exhibit A North Lakes Park Denton Soccer Association Building Playing Fields To Bonnie Brae Parking Foot ball #1 Soccer 13 Foot ball #3 Soccer 15 Pavilion L -EWI Foot ball #2 Soccer 14 Soccer Soccer 3 Soc Soc Soc 1 1 [ 5 7 ❑9 Soccer 2 Soccer 10 78J Soc 4 6 Proposed DSA i - - Office/Concession/Restroom Bldg N,kr.g soft! Softball 2 4 Pavilion Softball I Soft all T Wind SOl Bonnie Brae Basketball Softball 6 Softball 5 like; N, Ve Picnic Pavilion i3 T N Soccer Practice n Playground 0 J Volleyball 10/9,02 is Page 10 Exhibit B m W 1 MlvxaPis tl I I - / iE L\ 1- S11 7j t I I O I i I b T m O m I p ~ I I !w 1 I i I J68 P ~ I J CL ~ E 6_^ Scale: Project: Henry Rife Construction, Inc. Proposed DSA Concession Bldg. P.O. Box 2936 Page 11 _ Denton, TX 76202