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Home My WebLink About174-25 RESOLUTION113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 174-25 File Number: 2025-1251 A RESOLUTION TO APPROVE A TWENTY-YEAR LEASE AGREEMENT WITH PACKAGING SPECIALTIES, INC. FOR APPROXIMATELY 12,500 SQUARE FEET ALONG THE NORTHERN BOUNDARY OF WHITE RIVER PARK WHICH WILL ALLOW FOR THE CONSTRUCTION OF A FIRE ACCESS ROAD AND PARK AMENITIES, WITH AUTOMATIC RENEWALS IN INCREMENTS OF FIVE YEARS WHEREAS, Packaging Specialties, Inc (PSI) contacted the Parks, Natural Resources and Cultural Affairs Department to request permission to construct an access road that would cross into park property; and WHEREAS, while the access road would primarily serve PSI, its proposed alignment located within the boundaries of White River Park does benefit park use by allowing for public access and future trail construction; and WHEREAS, as compensation for the use of park land, PSI has committed to constructing several park amenities within White River Park as shown in Exhibit B to the lease agreement. 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 sign a twenty- year lease agreement with Packaging Specialties, Inc. for approximately 12,500 square feet along the northern boundary of Parcel #765-19971-00 in White River Park, which will allow for the construction of a fire access road and park amenities, with automatic renewals in increments of five years. PASSED and APPROVED on August 5, 2025 Approved: a� Molly Rawn, Mayor Attest: L\tY G� •Rk�N`,P: •2:� Kara Paxton, City Clerk Treasurer Page 1 CITY OF FAYETTEVILLE ARKANSAS MEETING OF AUGUST 5, 2025 CITY COUNCIL MEMO TO: Mayor Rawn and City Council THRU: Ted Jack, Park Planning Superintendent Alison Jumper, Director of Parks, Natural Resources and Cultural Affairs Keith Macedo, Chief of Staff FROM: Zach Foster, Park Planner II SUBJECT: A resolution approving a lease contract with Packaging Specialties, Inc RECOMMENDATION: 2025-1251 A resolution approving a lease contract with Packaging Specialties, Inc. for approximately 12,500 square feet along the northern boundary of Parcel #765-19971-000 in White River Park. BACKGROUND: Packaging Specialties, Inc. (PSI) contacted the Parks, Natural Resources and Cultural Affairs Department to request permission to construct an access road that would cross into park property. While the access road would primarily serve PSI, its proposed alignment located within the boundaries of White River Park does benefit park use. Park staff met with PSI to explore ways the company could offset the impact to public land if the lease were approved. DISCUSSION: PSI has agreed to enter into a twenty-year lease that will automatically renew in five-year increments unless either party provides written notice to terminate. Under the terms of the lease, PSI must meet several conditions. The access road must remain open to the public, including for potential future trail use, and its final design is subject to approval by the City. As compensation for the use of park land, PSI has committed to constructing several park amenities within White River Park. These improvements include accessible parking spaces, sidewalks, a pergola with a picnic table, and other related park features. Parks staff believes these improvements provide adequate public benefit to justify PSI's limited use of park property. BUDGET/STAFF IMPACT: Parks staff will be responsible for reviewing drawing submittals and coordinating final design approvals. ATTACHMENTS: 3. Staff Review Form, 4. Packaging Specialties Inc. Lease - Portion of White River Park for Access Drive, 5. Exhibit A, 6. Exhibit B 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 #: 2025-1251 A RESOLUTION TO APPROVE A TWENTY-YEAR LEASE AGREEMENT WITH PACKAGING SPECIALTIES, INC. FOR APPROXIMATELY 12,500 SQUARE FEET ALONG THE NORTHERN BOUNDARY OF WHITE RIVER PARK WHICH WILL ALLOW FOR THE CONSTRUCTION OF A FIRE ACCESS ROAD AND PARK AMENITIES, WITH AUTOMATIC RENEWALS IN INCREMENTS OF FIVE YEARS WHEREAS, Packaging Specialties, Inc (PSI) contacted the Parks, Natural Resources and Cultural Affairs Department to request permission to construct an access road that would cross into park property; and WHEREAS, while the access road would primarily serve PSI, its proposed alignment located within the boundaries of White River Park does benefit park use by allowing for public access and future trail construction; and WHEREAS, as compensation for the use of park land, PSI has committed to constructing several park amenities within White River Park as shown in Exhibit B to the lease agreement. 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 sign a twenty-year lease agreement with Packaging Specialties, Inc. for approximately 12,500 square feet along the northern boundary of Parcel #765-19971-00 in White River Park, which will allow for the construction of a fire access road and park amenities, with automatic renewals in increments of five years. Page 1 Zach Foster Submitted By City of Fayetteville Staff Review Form 2025-1251 Item ID 8/5/2025 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 7/15/2025 PARKS & RECREATION (520) Submitted Date Division / Department Action Recommendation: A resolution approving a lease contract with Packaging Specialties, Inc. for approximately 12,500 square feet along the northern boundary of Parcel #765-19971-000 in White River Park. 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: LEASE This Lease Agreement is entered into this 5th day of August , 2025, by and between the City of Fayetteville, Arkansas ("City") and Packaging Specialties, Inc. ("PSI"). WITNESSETH: 1. LEASED PREMISES. For and in consideration of the lease, covenants and agreements herein entered into and agreed upon by PSI as obligations to the City of Fayetteville, the City of Fayetteville leases to PSI, subject to the terms and conditions contained herein, a portion of land approximately 12,500 square feet along the northern boundary of Parcel #765-19971-000 in White River Park (the "Leased Premises") as shown in the map attached as Exhibit A and incorporated herein. PSI agrees to abide by and faithfully perform all of the covenants, terms, and conditions stated below. 2. TERM. This lease shall have an initial term of twenty (20) years commencing on the date this Agreement is signed by the Mayor. It will renew automatically in increments of five (5) years, unless either party issues a written notice to end the lease. 3. CONSIDERATION; RIGHTS AND RESPONSIBILITIES OF PSI. PSI agrees to ftimish to the City of Fayetteville as the rental consideration for this Leased Premises, the following valuable services and actions: (A) PSI shall construct an access road upon the Leased Premises subject to the following requirements. (1) Design and Approval: PSI shall submit detailed plans for the access road to the City for review and approval prior to construction. (2) Public Access: The gravel and concrete access road shall remain accessible for public use, including emergency services and as a possible trail in the future; however, PSI shall not be liable for any claims, injuries, or damages resulting from the use of the access road by members of the public, including pedestrians, cyclists, or unauthorized vehicles. The City shall be responsible for signage, policing, and risk mitigation related to such public use. (3) Maintenance: PSI shall be responsible for the ongoing maintenance and repair of the access road. (B) PSI shall have the right to use the Leased Premises for fire access, construction, and to conduct its business operations subject to the terms and conditions in this Agreement. (C) PSI shall construct park facilities including accessible parking, sidewalks, pergola, a picnic table, and related park features within White River Park, as detailed in Exhibit B. (D) PSI shall coordinate with the City's designated project manager to ensure compliance with City standards and minimize environmental impact during construction of the road and park facilities. (E) PSI shall obtain all necessary permits and approvals prior to commencing construction. (F) PSI shall ensure its employees, visitors, and any related associates do not impede City streets, easements, park access, and park parking spaces from public use. (G) PSI shall be responsible for keeping the grass within the leased premises mowed and in a satisfactory condition and the premises shall at all times be maintained in a neat and orderly condition similar in fashion to the care of their business campus. (H) All park construction shall be substantially completed and approved by the City before PSI can utilize the new access drive for its intended purposes. 4. ALTERATION OF IMPROVEMENTS. Any alteration of the improvements within the Leased Premises must be approved by the Mayor prior to such alteration. 5. RIGHTS RESPONSIBILITIES OF THE CITY. The City shall have the following rights and responsibilities: (A) The City shall not charge PSI an annual fee for use of the leased premises due to the mutually beneficial construction and maintenance of park facilities. (B) The City shall have the right to continue conducting City -sponsored events at White River Park, which may include the Leased Premises. (C) Upon approval acceptance by the City of the new park facilities to be constructed pursuant to this Agreement, the City shall be responsible for maintaining the park facilities. (D) The City may construct trail facilities upon the Leased Premises but will do so in a manner that does not restrict PSI's use of the access drive on the Leased Premises. (E) Security and Trespass Enforcement. The City acknowledges that White River Park is open to the public and may attract loiterers or other unauthorized individuals. The City shall retain responsibility for ensuring public safety and removing unauthorized individuals, trespassers, or loiterers from the Leased Premises and adjacent areas upon PSI's reasonable request. PSI shall not be responsible for law enforcement, security patrols, or removal of unauthorized persons beyond the ordinary scope of a commercial tenant's control. 6. SIGNS AND ADVERTISING. No sign, picture, advertisement, or notice shall be displayed on any part of the Leased Premises visible to the public 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 PSI and the City of Fayetteville. If PSI 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, PSI may assign this lease if the assignee has agreed in writing to honor all the terms of this Lease. 8. TAXES. PSI 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. Failure to properly and timely pay any applicable tax would constitute a material breach of this Lease and justify the City of Fayetteville's termination of this Lease for cause. 9. COMPLIANCE WITH LAWS. PSI 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. PSI shall be responsible for maintaining appropriate insurance coverage on the Leased Premises, including commercial general liability insurance during the full term of this Lease, with coverage of not less than $1,000,000 per occurrence and naming the City as an additional insured. The City of Fayetteville makes no warranty that this area is fit for any purposes to which Packaging Specialties, Inc may use it and shall not be liable for any injuries or damage which might occur upon the Leased premises related to PSI operations. PSI shall not be liable for any injuries to unauthorized individuals, including trespassers or members of the general public not affiliated with PSI, unless such injury is directly caused by PSI's gross negligence or willful misconduct. The City shall remain responsible for addressing and removing unauthorized individuals, trespassers, or loiterers within the public park area or adjacent property not under PSI's control. 11. INSURANCE ON CONSTRUCTED FACILITIES. PSI shall maintain comprehensive general liability insurance with limits not less than $1,000,000 per occurrence, naming the City as an additional insured during construction. Proof of insurance shall be provided to the City prior to commencement of any work. Following completion of construction and acceptance of the park facilities by the City, the City shall assume all responsibility related to the use, condition, and maintenance of such park improvements. PSI shall not be liable for any injury or damage occurring within the constructed park area, except to the extent such injury or damage was caused by PSI's gross negligence or willful misconduct. 12. 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. 13. ACCEPTANCE OF LEASED PREMISES. PSI acknowledges that it has inspected the Leased Premises and determined them adequate for its intended uses. PSI accepts the Leased Premises in its current condition. 14. RETURN OF LEASED PREMISES. At the end of the term of this Lease, or upon any other earlier termination, PSI 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 PSI, ordinary wear and tear excepted. 15. NOTICES. Any notice to PSI called for or permitted under the terms of this Lease shall be given in writing and sent by certified mail to Packaging Specialties, Inc. at 3862 East Chadwick Drive, Fayetteville, Arkansas 72702 and to the City of Fayetteville at 113 W. Mountain St., ATTN: Mayor's Office, Fayetteville, AR 72701. 16. WASTE. PSI 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 PSI shall default in any of the covenants, agreements, conditions, or undertakings herein contained to be kept, observed and performed by PSI, the City of Fayetteville shall give notice of such default in writing to PSI and PSI 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, PSI 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. 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 PSI 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 PSI 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. 4 22. INDEMNIFICATION. PSI agrees to indemnify, defend, and hold harmless the City, its officers, agents, and employees from any and all claims, damages, or liabilities arising out of or related to PSI's activities under this Lease agreement. IN WITNESS WHEREOF, the City of Fayetteville, Arkansas by Mayor Molly Rawn and Packaging Specialties, Inc., by and through its Authorized Representative "r 4- Cv/o , 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. PACKAGING SPECIALTIES, INC. Name Srp�} C„►r Title eon -koI/f,- Date signed: 0 /ZO Z CITY OF FAYETTEVILLE, ARKANSAS MOLLY RAWN, Mayor Date signed: Witnes : Attest: ame: vrneeTky Title: F � 8/5/2025 KARA PAXTON, City Clerk -Treasurer 5 KARA PAXTON, City Clerk -Treasurer 5 0 iL r � � su _ JI. PARCEL #765-19973-000 PACKAGING SPECIALTIES INC I -W Permeable Driveway ---------- 1lSS 17k7 0 Proposed Proposed _ Leased Area Park Facilities o 500' PARCEL #765-19971-000 CITY OF FAYETTEVILLE 155' �l r EXHIBIT A Proposed Lease Area 1-7 2 C Conceptual Drawing Packaging Specialties Inc. 1663 S Armstrong Ave, I Fayetteville, AR 72701 (479) 521-2580 Created By: Chelsea Kennedy Updated By: Zach Foster Scale: 1/16" =1'-0" I � Date Drawn: October 1st, 2014 f Date Updated: May 13, 2025 r 4* Existing Building 0 N EXHIBIT B ' Proposed Park Facilities Conceptual Drawing \ \ Packaging Specialties Inc. 1663 S Armstrong Ave, 15' 20' Fayetteville, AR 72701 (479) 521-2580 Lease Area 12� Created By: Chelsea Kennedy B Updated : Zach Foster p Y -48'x20' Gravel Parking 11'x20' H.C. Parking Scale: 1/16" =1'-0" w/ 5' Landing 8' Wooden Bench 5' Accessible Concrete Path Date Drawn: on Concrete Pad-16'x12' Fan Pergola or similar October 1st, 2014 8' Accessible design w/ Concrete Pad Date Updated: Picnic Table May 13, 2025 - C01- L �