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HomeMy WebLinkAbout136-25 RESOLUTION113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 136-25 File Number: 2025-693 A RESOLUTION TO APPROVE A FIVE-YEAR LEASE AGREEMENT WITH NWA OPO, LLC TO RENT THE PATIO AREA ADJACENT TO THE SQUARE GARDENS AND OLD POST OFFICE BUILDING WITH AN OPTION TO RENEW FOR AN ADDITIONAL FIVE YEARS WHEREAS, NWA OPO, LLC has leased the 1,676 square -foot patio area within the fenced area between the south side of their building and the Square Gardens since 2019 for its business as an outside patio; and WHEREAS, the new lease agreement term is five (5) years, commencing June 3, 2025 and ending June 2, 2030, and NWA OPO, LLC will have an option to renew the lease for an additional five (5) years. NOW, THEREFORE, 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 authorizes Mayor Rawn to execute a five- year lease agreement with NWA OPO, LLC, a copy of which is attached to this Resolution, to rent the patio area adjacent to the square gardens and Old Post Office building with an option to renew for an additional five years. PASSED and APPROVED on June 3, 2025 Approved: Molly Rawn, Mayor Attest: m= FAYETfEViEEE: 'c Kara Paxton, City Clerk Treasurer Page 1 LEASE This Lease Agreement is entered into this 3rd day of June,2025, by and between the City of Fayetteville, whose address is 113 West Mountain Street, Fayetteville, AR 72701 and NWA OPO, LLC whose mailing address is Post Office Box 10856, Fayetteville, Arkansas 72703. WITNESSETH: 1. LEASED PREMISES. For and in consideration of the commitments, covenants, terms, and agreements herein entered into and agreed upon by NWA OPO, LLC as obligations to the City of Fayetteville, the City of Fayetteville leases to NWA OPO, LLC subject to the terms and conditions contained herein, the improved seating and patio area adjoining the old Post Office Building and within the fence containing approximately 1676 square feet (the "Leased Premises"). NWA OPO, LLC agrees to abide by and faithfully perform all of the covenants, terms, and conditions stated below. 2. TERM. This lease shall commence on June 3, 2025 and shall extend five (5) years until June 3 , 2030. If at the end of the first term NWA OPO, LLC shall have fully performed every agreement and covenant pursuant to the terms of this lease, the City and NWA OPO, LLC may renew the lease for an additional five (5) year term if so requested by NWA OPO, LLC in writing provided to the Mayor no later than April 30, 2030. Consideration for the lease may be renegotiated at the time of renewal. 3. CONSIDERATION. NWA OPO, LLC agrees to furnish to the City of Fayetteville as the rental consideration for this Leased Premises, the following valuable services and actions: (A) to continue to provide the space and electricity to operate the wireless internet broadcast antennas attached to its building and any necessary space within its building to enable public WIFI connectivity for persons on the Square as provided by Cox Communications. (B) to continue to allow the A & P Commission to attach and operate its outside speakers for Lights of the Ozarks and provide electricity for the speakers; (C) to continue to allow the City of Fayetteville to hang Christmas lights on the building; (D) to refrain from objecting or legally challenging the closure of City streets and parking spaces around the Square during the Saturday's Farmers' Market, First Thursday, Lights of the Ozarks and occasional special events authorized by the Mayor such as the FHS homecoming parade and celebrations. (E) to continue to allow unfettered access by city employees to the storage shed constructed on the former loading area outside the Leased Premises. (F) to enforce the City's no smoking in City parks regulations by prohibiting smoking in the Leased Premises (part of the Square Gardens city park) by its employees, customers and patrons. (G) To maintain the interior of the Premises, including cleaning, minor repairs, and ensuring the space remains suitable for business and community engagement to maintain the Leased Premises in accordance with the requirements of Section 13 below. 4. ALTERATION OF IMPROVEMENTS. Any alteration of the improvements within the Leased Premises must be approved by the Mayor prior to such alteration. 5. MUSIC. NWA OPO, LLC agrees that only live, non -amplified music will be permitted on the Leased Premises. This music shall not be loud enough to disturb persons enjoying the Square Gardens, with the exception that on Razorback home football games amplified music shall be allowed from 2:00 P. M. until 10:00 P. M. if also approved by Conditional Use by the Planning Commission and in conformance with the City's Noise Ordinance. 6. SIGNS AND ADVERTISING. No sign, picture, advertisement, or notice shall be displayed on any part of the Leased Premises visible to the public outside the patio area without the previous written consent of the City of Fayetteville. 7. LIMITED RIGHT OF ASSIGNMENT AND SUCCESSION. This Lease agreement shall inure to the benefit of and be binding upon NWA OPO, LLC and the City of Fayetteville. If NWA OPO, LLC wishes to assign this Lease, it must notify the Mayor's Office in writing at least 30 days before such assignment is anticipated with the name of the proposed assignee. Unless the City Council objects by passing a Resolution forbidding such assignment within 30 days after proper notice, NWA OPO, LLC may assign this lease if the assignee has agreed in writing to honor all the terms of this Lease. 8. TAXES. NWA OPO, LLC shall pay any and all ad valorem taxes or special improvement district taxes levied and assessed against the Leased Premises and the improvements located thereon during the term of this lease. NWA OPO, LLC also agrees to promptly and properly pay all Fayetteville Hotel Motel and Restaurant taxes and all Alcoholic Beverage taxes during this Lease. Failure to properly and timely pay all HMR, Alcoholic Beverage or other State or City tax would constitute a material breach of this Lease and justify the City of Fayetteville to terminate this Lease for cause. 9. COMPLIANCE WITH LAWS. NWA OPO, LLC agrees not to violate any law, ordinance, rule or regulation of any government authority having jurisdiction of the leased premises. 10. INSURANCE ON LEASED PREMISES. NWA OPO, LLC shall be solely responsible for maintaining whatever insurance it deems necessary on the Leased Premises. The City of Fayetteville makes no warranty that this area is fit for any purposes to which NWA OPO, LLC may use it and shall not be liable for any injuries or damage which might occur upon the Leased Premises. 11. RIGHT OF INSPECTION. The City of Fayetteville shall have the right, in person or through the City of Fayetteville's duly authorized representative, at all reasonable times to inspect the Leased Premises. 2 12. ACCEPTANCE OF LEASED PREMISES. The NWA OPO, LLC acknowledges that it has inspected the Leased Premises and determined them adequate for its intended uses. NWA OPO, LLC accepts the Leased Premises in its current condition. 13. MAINTENANCE OF LEASED PREMISES. NWA OPO, LLC shall be responsible for maintaining the improvements upon the Leased Premises in a satisfactory condition and the Leased Premises shall, at all times, be maintained in a neat and orderly condition. NWA OPO, LLC's business operations will be carried on in accordance with the highest standards for such businesses, particularly in the areas of cleanliness, service and noise. 14. RETURN OF LEASED PREMISES. At the end of the term of this lease, or upon any other earlier termination, NWA OPO, LLC agrees promptly and peaceably to restore possession of the Leased Premises to the City of Fayetteville in as good condition as they were when delivered to NWA OPO, LLC, ordinary wear and tear excepted. 15. NOTICES. Any notice to NWA OPO, LLC called for or permitted under the terms hereof shall be sufficient if given in writing and delivered by any of the following methods: a. Certified mail to NWA OPO, LLC at 3862 East Chadwick Drive, Fayetteville, AR 72702; b. Electronic mail to 'rC U (-`F4 S e 9 j A6,A COM ;or c. Posted upon the fron door of Cheers at the OPO at 1 West Center Street, Fayetteville, Arkansas 72701. Any notice to the City of Fayetteville shall be delivered by certified mail to City of Fayetteville, Attn: Mayor's Office, 113 W. Mountain St., Fayetteville, AR 72701. 16. WASTE. NWA OPO, LLC agrees not to commit waste, nor permit waste to result or to be done to or upon the Leased Premises, nor to store or permit to be stored thereon any explosives, combustible substances or dangerous materials; nor to operate or permit to exist thereon any public or private nuisance. 17. RIGHT TO CURE. If NWA OPO, LLC shall default in any of the covenants, agreements, conditions, or undertakings herein contained to be kept, observed and performed by NWA OPO, LLC, the City of Fayetteville shall give notice of such default in writing to NWA OPO, LLC and NWA OPO, LLC shall have thirty (30) days from and after the giving of such notice to eliminate and/or cure the cause of such default. If said default is eliminated or cured with the aforementioned thirty (30) days, NWA OPO, LLC shall not be considered in default or in breach of this lease. 18. SEVERABILITY. Each paragraph of this lease agreement is severable from all other paragraphs. In the event any court of competent jurisdiction determines that any paragraph or subparagraph is invalid or unenforceable for any reason, all remaining paragraphs and subparagraphs will remain in full force and effect. 3 19. INTERPRETATION AND VENUE. This lease agreement shall be interpreted according to and enforced under the laws of the State of Arkansas with proper jurisdiction and venue in Washington County, Arkansas. 20. ENTIRE AGREEMENT. This lease agreement contains the entire agreement of both parties hereto, and no other oral or written agreement shall be binding on the parties hereto. 21. NON -WAIVER PROVISION. The failure of the City of Fayetteville or NWA OPO, LLC to insist upon the strict and literal performance of any agreement, term, or condition herein or to exercise any option retained or granted by reason of a default by NWA OPO, LLC shall not constitute a waiver of the City of Fayetteville's right thereafter to insist upon and enforce full performance of such conditions and agreements. IN WITNESS WHEREOF, the City of Fayetteville, Arkansas by Mayor Molly Rawn and NWA OPO, LLC by and through its Owner and Manager Jane Routon Arnold have hereunto set their hands and seals and have caused their names to be hereunto affixed by the undersigned officers who are duly authorized to act. NWA OPO, LLC CITY OF FAYETTEVILLE, ARKANSAS LfC B By. : o Y JANE ROUTON ARNOLD Owner/Manager Date signed: 3 � Witness: / V Name: ICI' (ka ices I1✓01 ,q Title: �, , 67C Op -r&'n MOLLY RAWN, Mayor Date signed: June 3, 2025 .Prm: �fAV�il Evil LEA' Attest: Kara Paxton, City Clerk -Treasurer 4 CITY OF FAYETTEVILLE ARKANSAS MEETING OF JUNE 3, 2025 CITY COUNCIL MEMO TO: Mayor Rawn and City Council THRU: Keith Macedo, Chief of Staff Alison Jumper, Director of Parks, Natural Resources and Cultural Affairs FROM: Lee Farmer, Recreation Superintendent SUBJECT: Lease agreement with NWA OPO, LLC RECOMMENDATION: 2025-693 Approval of a Lease Agreement with NWA OPO, LLC for the patio area adjacent to the Square Gardens and the old Post Office building. BACKGROUND: The Downtown Square Gardens consist of the entire block for the footprint of the old Post Office building. NWA OPO, LLC has leased the 1,676 square foot patio area within the fenced area between the south side of their building and the Square Gardens since 2019 for their business as an outside patio. DISCUSSION: The lease agreement's term is 5 years, commencing June 3, 2025, and extending to June 2, 2030. At the end of the first term, the City and NWA OPO, LLC may renew the lease for an additional 5 years if desired. Conditions for the agreement include: 1. To continue to provide the space and electricity to operate the wireless internet broadcast antennas attached to its building and necessary space within its building to enable public WIFI connectivity on the Square Gardens. 2. To continue to allow the A & P Commission at attach and operate its outside speakers for Lights of the Ozarks and provide electricity for the speakers. 3. To continue to allow the City to hang Christmas lights on the building. 4. To refrain from objecting or legally challenging the closure of City streets and parking spaces around the Square Gardens for occasional special events. 5. To allow city employees access to the storage shed on the southern side of their building. 6. Enforce the City's no smoking in City parks regulations within this lease area. BUDGET/STAFF IMPACT: This is a no -cost lease and will have no budget or staff impact. ATTACHMENTS: 3. Staff Review Form, 4. NWA OPO Signed Agreement 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 #: 2025-693 A RESOLUTION TO APPROVE A FIVE-YEAR LEASE AGREEMENT WITH NWA OPO, LLC TO RENT THE PATIO AREA ADJACENT TO THE SQUARE GARDENS AND OLD POST OFFICE BUILDING WITH AN OPTION TO RENEW FOR AN ADDITIONAL FIVE YEARS WHEREAS, NWA OPO, LLC has leased the 1,676 square -foot patio area within the fenced area between the south side of their building and the Square Gardens since 2019 for its business as an outside patio; and WHEREAS, the new lease agreement term is five (5) years, commencing June 3, 2025 and ending June 2, 2030, and NWA OPO, LLC will have an option to renew the lease for an additional five (5) years. NOW, THEREFORE, 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 authorizes Mayor Rawn to execute a five-year lease agreement with NWA OPO, LLC, a copy of which is attached to this Resolution, to rent the patio area adjacent to the square gardens and Old Post Office building with an option to renew for an additional five years. Page 1 Lee Farmer Submitted By City of Fayetteville Staff Review Form 2025-693 Item ID 6/3/2025 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 5/13/2025 PARKS & RECREATION (520) Submitted Date Division / Department Action Recommendation: Approval of a Lease Agreement with NWA OPO, LLC for the patio area adjacent to the Square Gardens and the old Post Office building. Account Number 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: Budget Impact: Fund Project Title Total Amended Budget $ - Expenses (Actual+Encum) $ - Available Budget Item Cost $ - Budget Adjustment $ - Remaining Budget V20221130 Previous Ordinance or Resolution # Approval Date: