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HomeMy WebLinkAbout194-24 RESOLUTION113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 194-24 File Number: 2024-369 SPECTRUM LIVING SOLUTIONS, INC. (LEASE AGREEMENT): A RESOLUTION TO APPROVE A LEASE AGREEMENT WITH SPECTRUM LIVING SOLUTIONS, INC. D/B/A SLS COMMUNITY THROUGH DECEMBER 31, 2024 FOR THE PROPERTY LOCATED AT 2190 SOUTH RAZORBACK, WITH AN AUTOMATIC EXTENSION FOR FOUR YEARS THROUGH DECEMBER 31, 2028 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves a lease agreement with Spectrum Living Solutions Inc. d/b/a SLS Community through December 31, 2024, a copy of which is attached to this Resolution and made a part hereof, for the property located at 2190 South Razorback, with an automatic extension for four years through December 31, 2028. PASSED and APPROVED on August 6, 2024 Page 1 Attest: 11111 i `� T ��� : • �� Y O,c Kara Paxton City Clerk Treasurer FAl ETTEV:LL: /t • I r�♦ •sue-Y�.!►� "`r�i iCi��' „ `\ �2. CITY OF CITY COUNCIL MEMO FAYETTEVILLE ARKANSAS 2024-369 MEETING OF AUGUST 6, 2024 TO: Mayor Jordan and City Council THRU: Susan Norton, Chief of Staff FROM: Yolanda Fields, Comm. Resources Dir./Equity Off. SUBJECT: Public Facility Lease Program — Approval of Lease for 2190 S Razorback RECOMMENDATION: Staff recommends approval of a lease with Spectrum Living Solutions Inc. dba SLS Community for the property located at 2190 S. Razorback. BACKGROUND: The property located at 2190 S. Razorback was acquired with Community Development Block Grant (CDBG) funds. This property is a part of the CDBG Public Facility Lease Program. Properties acquired with CDBG are made available through an application process to non -profits that provide services to low/mod residents in the City of Fayetteville. SLS Community submitted an application for the property located at 2190 S. Razorback. This organization met all the requirements for the program. SLS (Supporting Lifelong Success for Neurodiverse Adults) Community was incorporated in 2015 to provide essential resources and opportunities for neurodiverse adults and their families, allowing them to flourish, interact meaningfully with the broader community, and find their own paths to independence and self -actualization. The Razorback property will provide a venue for SLS Community to expand our service operation as a long-term day center for vocational, life skills, and supported employment training for neurodiverse adults. DISCUSSION: The lease document with Spectrum Living Solutions Inc. dba SLS Community for the property located at 2190 S. Razorback is being submitted for approval. BUDGET/STAFF IMPACT: No impact. ATTACHMENTS: SRF (#3), 2190 Razorback Lease Agreement (#4) Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 == City of Fayetteville, Arkansas y 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 - Legislation Text File #: 2024-369 Public Facility Lease Program — Approval of Lease for 2190 S Razorback A RESOLUTION TO APPROVE A LEASE AGREEMENT WITH SPECTRUM LIVING SOLUTIONS, INC. DB/A SLS COMMUNITY THROUGH DECEMBER 31, 2024 FOR THE PROPERTY LOCATED AT 2190 SOUTH RAZORBACK, WITH AN AUTOMATIC EXTENSION FOR FOUR YEARS THROUGH DECEMBER 31, 2028 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves a lease agreement with Spectrum Living Solutions Inc. d/b/a SLS Community through December 31, 2024, a copy of which is attached to this Resolution and made a part hereof, for the property located at 2190 South Razorback, with an automatic extension for four years through December 31, 2028. Page 1 Yolanda Fields Submitted By City of Fayetteville Staff Review Form 2024-369 Item ID 8/6/2024 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 7/15/2024 COMMUNITY RESOURCES (642) Submitted Date Division / Department Action Recommendation: Staff recommends approval of a lease with Spectrum Living Solutions Inc. dba SLS Community for the property located at 2190 S. Razorback. Budget Impact: N/A N/A Account Number Fund N/A N/A Project Number Budgeted Item? No Does item have a direct cost? No Is a Budget Adjustment attached? No Purchase Order Number: Change Order Number: Original Contract Number: Comments: Project Title Total Amended Budget $ - Expenses (Actual+Encum) $ - Available Budget Item Cost $ - Budget Adjustment $ - Remaining Budget V20221130 Previous Ordinance or Resolution # Approval Date: LEASE AGREEMENT 2190 S Razorback Rd. THIS LEASE AGREMENT executed this 6 day of August 52024, by and between the City of Fayetteville, Arkansas and Spectrum Living Solutions Inc., a non-profit Arkansas corporation, hereinafter referred to as "SLS Community". In consideration of the promises, covenants and commitments contained herein, the City of Fayetteville and SLS Community hereby agree as follows: 1. PREMISES. The City of Fayetteville hereby leases to SLS Community and SLS Community hereby leases from The City of Fayetteville the building, parking lot, and premises of 2190 S Razorback Rd., Fayetteville, AR 72701. a. Subletting of premises is not allowed. 2. TERM. The original term of this Lease shall commence on the 6 day of August , 2024 and shall terminate on December 31st, 2024, at 5:00 p.m. This Lease shall be automatically extended for an additional term of four years unless written notice of termination is given by City of Fayetteville or SLS Community to the other party at least thirty (30) days prior to expiration of the original term of this lease. This notice shall be effective if mailed or delivered to: City of Fayetteville Community Resources Yolanda Fields Executive Director 113 W Mountain Fayetteville, AR 72701 SLS Community Ashton McCombs IV Executive Director 4375 N Vantage Dr., Suite 104 Fayetteville, AR 72703 3. CONSIDERATION. In consideration for the use of leased premises SLS Community agrees to provide its services to low- and moderate- income residents of Fayetteville. SLS Community shall maintain at all times a current and complete record of all activities conducted on the leased premises in a form specified by the City of Fayetteville. SLS Community shall submit a quarterly activity report to the City of Fayetteville Community Resources Department on or before the 15t" of the month following the end of each quarter. The City of Fayetteville and the United States Department of k�,� CDBG oc>oaiuHiiv Housing and Urban Development (HUD) shall have complete access to all SLS Community's records during all reasonable hours and shall have the right to inspect and copy said records. a. Nonprofit community partner agencies serving low -to moderate income residents of Fayetteville may use location space for service delivery only. 4. UTILITIES. SLS Community shall be responsible for prompt and complete payment of all utilities including electric bills, natural gas bills, water and sewer bills, sanitation service bills and telecommunications bills. 5. IMPROVEMENTS TO PREMISES. Improvement design must be approved in writing by the Community Resources Department of the City of Fayetteville prior to the start of an improvement project. SLS Community may make improvements that are necessary to carry out the services they provide. SLS Community agrees that it will always keep and maintain the leased premises and all improvements thereon in good condition and repair. SLS Community agrees to be responsible for yard maintenance and for the maintenance and replacement of all heating, electrical, and air conditioning equipment, plumbing, and fire extinguishers on the premises. SLS Community shall return the leased premise at the expiration or termination of the Lease in good order and condition, excepting only ordinary wear and tear and casualties beyond SLS Community control. Upon termination of this lease all improvements shall become the property of the City of Fayetteville. 6. CONDITION OF PREMISES. SLS Community may not mark, paint upon, cut, drill into, drive nails or screws into, or in any way deface the walls, ceilings, partitions, or floors of the premises or of the building. 7. MAINTENANCE AND REPAIR FUND. SLS Community will establish and maintain a Maintenance and Repair Fund. SLS Community shall immediately begin depositing the amount of $500.00 per month in a separate savings account in a savings institute acceptable to the City of Fayetteville for the period of time required to establish and maintain a fund total of $30,000.00. These funds may be used only for the maintenance and repair of the premises. 8. FACILITY DEPOSIT. SLS Community will provide a $5,000.00 Facility Deposit to the City of Fayetteville prior to moving in unless a letter of understanding is attached to this lease agreement. The entire amount will be held by the City for the duration of the lease. Upon notification of intent to vacate the lease the City will inspect the location to determine the condition. If repairs are needed to return the premises to good condition the Facility Deposit amount will be used to make the repairs. Any remaining balance will be refunded to SLS Community. il�GG CD�EQUAL HOUSING OPPORTUNITY 9. INSURANCE. SLS Community will be invoiced annually for property insurance (annual premium amount will be provided by the City of Fayetteville's Purchasing Department). 10. QUARTERLY FINANCIAL STATEMENTS. SLS Community shall maintain complete and accurate monthly financial statements for all activities conducted on the leased premises. SLS Community shall file a copy of each month's financial statement with the City of Fayetteville's Community Resources Department on or before the 15t" day following the end of the quarter. 11. BENEFIT TO LOW-INCOME FAMILIES. The Community Development Program has been developed to give maximum feasible priority to activities which will benefit low- and moderate -income families. SLS Community commits that the leased premises will be used to benefit low- and moderate - income families. 12. COMPLIANCE WITH FEDERAL RULES AND REGULATIONS. SLS Community agrees to comply with all rules and regulations as established by the Department of Housing and Urban Development (HUD) for programs financed by the Housing and Community Development Act of 1974; and a. Lessee will comply with the regulations, policies, guidelines and requirements of OMB Circular No. A-102, Revised, acceptance and use of Federal funds under 24 CFR 570; and b. Lessee will comply with all requirements imposed by HUD concerning special requirements of law, program requirements, and other administrative requirements, approved in accordance with OMB Circular No. A-102, Revised. c. Lessee will comply with Title VI of the Civil Rights Act of 1964 (P.L. 88-352), and regulations issued pursuant thereto (24 CFR Part 1), which provides that no person in the United States shall on the grounds of race, color or national origin be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under any of SLS Community programs or activities. d. SLS Community will comply with Section 109 of the Housing and Community Development Act of 1974, and the regulations issued pursuant thereto (24 CFR Part 570.601), which provides that no person in the United States shall, on the grounds of race, color, national origin, or sex be excluded from participation in, be denied the benefits of, or be subjected to discrimination under, any program 00 �E CDBG OPPONTUNi Tv or activity funded in whole or in part with funds proved under 24 CFR 570. e. SLS Community will comply with Section 3 of the Housing and Urban Development Act of 1968, as amended, requiring that to the greatest extent feasible opportunities for training and employment be given to lower -income residents of the project area and contracts for work in connection with the project be awarded to eligible business concerns which are located in, or owned in substantial part by, persons residing in the area of the project. 13. PERSONAL GAIN. SLS Community will establish safeguards to prohibit employees from using position for a purpose that is or gives the appearance of being motivated by a desire for private gain for themselves or others, particularly those with whom they have family, business, or other ties. 14. HATCH ACT. SLS Community will comply with applicable provisions of the Hatch Act. 15. RIGHT TO INSPECT RECORDS. SLS Community will give HUD and the Comptroller General, through any authorized representatives access to and the right to examine all records, books, papers, or documents related to the program. 16. ENVIRONMENTAL PROTECTION. SLS Community will ensure that the facilities under its lease or supervision which shall be utilized in the accomplishment of the program are not listed on the Environmental Protection Agency's (EPA) list of Violating Facilities and that it will notify HUD of the receipt of any communication from the Director of the EPA Office of Federal Activities indicating that a facility to be used in the project is under consideration for listing by the EPA. 17. FLOOD DISASTER PROTECTION ACT. SLS Community shall comply with the Flood Disaster Protection Act of 1973, P.L. 93-234, 87stat. 975, approved December 31, 1973. Section 103(a) required, on and after March 2, 1974, the purchase of flood insurance in communities where such insurance is available as a condition for the receipt of any Federal financial assistance for construction or acquisition purposes for use in any area, that has been identified by the Secretary of the Department of Housing and Urban Development (HUD) as an area having special flood hazards. The phrase "Federal financial assistance" shall be included in any form of loan, grant, guaranty, insurance payment, rebate, subsidy, disaster assistance loan or grant, or any other form of direct or indirect Federal assistance. GGl� CD�EQUAL HOUSING OPPORTUNITY 18. CURE OR TERMINATION. If the City of Fayetteville determines that SLS Community has violated a duty, term, or condition of this Lease Agreement, it shall so notify SLS Community in writing at the address listed above in paragraph 2. SLS Community shall have thirty (30) days after notification to cure the breach. If SLS Community fails to cure the breach to satisfaction of the City of Fayetteville within the allotted period, the City of Fayetteville, acting through its Mayor, may declare this Lease Agreement terminated and so notify SLS Community, which shall immediately vacate the premises. IN WITNESS WHEREOF, the parties have executed this Lease Agreement on the date first above written. Spectrum Living Solutions Inc. CIT OF FAY d/mob//a SLS Community A ANSAS Ashton McCombs IV ALUilneld Jord- Executive Director Mayor 1 LE, � -HOUSING ,C , OPPORTUNITY