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HomeMy WebLinkAbout195-25 RESOLUTION Page 1 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 195-25 File Number: 2025-1516 A RESOLUTION TO AUTHORIZE MAYOR RAWN TO SIGN A SHARED PARKING LEASE AGREEMENT WITH HMT OF FAYETTEVILLE, LLC FOR OPERATION OF TWO PRIVATELY OWNED PARKING LOTS AS REVENUE-PRODUCING OFF-STREET PARKING LOTS WITHIN THE DICKSON STREET ENTERTAINMENT DISTRICT, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, a shared parking arrangement with HMT of Fayetteville, LLC for property located at 313 W. Dickson street serves the public interest as it creates a managed parking environment consistent with other City-managed parking facilities within the Entertainment District and ensures continuity in parking rules, regulations, rates, and enforcement methods found in other City-managed parking facilities throughout the Dickson Street Entertainment District. 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 shared parking lease agreement with HMT of Fayetteville, LLC for operation of two off-street parking lots at 313 W. Dickson Street as revenue-producing off-street parking lots within the Dickson Street Entertainment District for a term of one year with automatic renewals for up to five additional one year terms. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached to this Resolution. PASSED and APPROVED on September 2, 2025 Approved: _______________________________ Molly Rawn, Mayor Attest: _______________________________ Kara Paxton, City Clerk Treasurer Mailing address: 113 W. Mountain Street Fayetteville, AR 72701 www.fayetteville-ar.gov CITY COUNCIL MEMO 2025-1516 MEETING OF SEPTEMBER 2, 2025 TO: Mayor Rawn and City Council THRU: Keith Macedo, Chief of Staff Chris Brown, Public Works Director FROM: Justin Clay, Parking Manager SUBJECT: A resolution to authorize Mayor Rawn to sign a shared parking lease agreement with HMT of Fayetteville for the operation of two privately-owned parking lots as revenue- producing off-street parking lots within the Dickson Street Entertainment District and to approve a budget adjustment. RECOMMENDATION: Staff recommends approving the lease agreement, and accompanying budget adjustment, with HMT of Fayetteville (HMT) authorizing the City to operate two privately-owned parking lots located at 313 W. Dickson Street as revenue-producing off-street parking lots. The lots contain 49 parking spaces. BACKGROUND: This agreement is the result of ongoing discussions between HMT representatives and City staff about the prospect of City management of the HMT-owned surface parking lots located at 313 W. Dickson Street. This agreement would authorize the City to institute a managed paid parking program and would allow HMT to generate consistent revenue from their parking lots and for the City to share in the revenue. Currently, the parking lots operate under a privately-managed parking operation. DISCUSSION: The terms of this agreement authorize the City to operate and manage the HMT lots for both transient (hourly or daily) and permit (monthly) parking using the City's existing parking management system. The hourly rates and permit fees will be determined and agreed upon by the City and HMT to achieve desired utilization. Parking revenue generated from the transient and permit fees will be split 85/15 between HMT and the City. The City will retain 100% of the revenue for any citations issued. The City will be responsible for parking equipment, systems, signage, and general upkeep of the lot. HMT will be responsible for maintenance and upgrades to the property. Staff feel that this shared parking agreement serves the public interest as it creates a managed parking environment consistent with other City-managed parking facilities within the Entertainment District. Recognizable wayfinding signage and consistent parking regulations, coupled with nearby transit service, will make the HMT lots an attractive option for daily parking within the heart of the Entertainment District. BUDGET/STAFF IMPACT: Staff anticipate minimal staff impact as these locations are within our existing parking district. Staff anticipate $50,000 in total revenue to be shared for the remainder of the year. Mailing address: 113 W. Mountain Street Fayetteville, AR 72701 www.fayetteville-ar.gov ATTACHMENTS: 3. Staff Review Form, 4. Budget Adjustment, 5. HMT_City_Lease Agreement_8.13.2025, 6. HMT Lots Map Page 1 City of Fayetteville, Arkansas Legislation Text 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 File #: 2025-1516 A RESOLUTION TO AUTHORIZE MAYOR RAWN TO SIGN A SHARED PARKING LEASE AGREEMENT WITH HMT OF FAYETTEVILLE, LLC FOR OPERATION OF TWO PRIVATELY OWNED PARKING LOTS AS REVENUE-PRODUCING OFF-STREET PARKING LOTS WITHIN THE DICKSON STREET ENTERTAINMENT DISTRICT, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, a shared parking arrangement with HMT of Fayetteville, LLC for property located at 313 W. Dickson street serves the public interest as it creates a managed parking environment consistent with other City-managed parking facilities within the Entertainment District and ensures continuity in parking rules, regulations, rates, and enforcement methods found in other City-managed parking facilities throughout the Dickson Street Entertainment District. 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 shared parking lease agreement with HMT of Fayetteville, LLC for operation of two off-street parking lots at 313 W. Dickson Street as revenue-producing off-street parking lots within the Dickson Street Entertainment District for a term of one year with automatic renewals for up to five additional one year terms. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached to this Resolution. City of Fayetteville Staff Review Form 2025-1516 Item ID 9/2/2025 City Council Meeting Date - Agenda Item Only N/A for Non-Agenda Item Justin Clay 8/13/2025 PARKING MANAGEMENT (430) Submitted By Submitted Date Division / Department Action Recommendation: A resolution to authorize Mayor Rawn to sign a shared parking lease agreement with HMT of Fayetteville for the operation of two privately-owned parking lots as revenue-producing off-street parking lots within the Dickson Street Entertainment District and to approve a budget adjustment. Budget Impact: 2130.430.9131-4426.57 Parking Account Number Fund Project Number Project Title Budgeted Item?No Total Amended Budget $- Expenses (Actual+Encum)$- Available Budget $- Does item have a direct cost?No Item Cost $- Is a Budget Adjustment attached?Yes Budget Adjustment $35,000.00 $269.00 Remaining Budget $35,000.00 V20221130 Purchase Order Number:Previous Ordinance or Resolution # Change Order Number:Approval Date: Original Contract Number: Comments: City of Fayetteville, Arkansas - Budget Adjustment (Agenda) Budget Year Division /Org2 PARKING MANAGEMENT (430) Adjustment Number 2025 Requestor:Justin Clay BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION: A resolution to authorize Mayor Rawn to sign a shared parking lease agreement with HMT of Fayetteville for the operation of two privately-owned parking lots as revenue-producing off-street parking lots within the Dickson Street Entertainment District and to approve a budget adjustment. COUNCIL DATE:9/2/2025 ITEM ID#:2025-1516 Holly Black 8/14/2025 7:49 AM Budget Division Date TYPE:D - (City Council) JOURNAL #: GLDATE: RESOLUTION/ORDINANCE CHKD/POSTED:/ v.2025721TOTAL35,000 35,000 Increase / (Decrease)Project.Sub# Account Number Expense Revenue Project Sub.Detl AT Account NameGLACCOUNTEXPENSEREVENUEPROJECTSUBATDESCRIPTION X 2130.430.9131-4426.57 -50,000 RE Parking Lot Rent - Bakery Bldg Lots (HMT) 2130.430.9131-5711.07 35,000 -EX Parking Transfer - Bakery Bldg Lots (HMT) 2130.430.9130-4999.99 -(15,000)RE Use Fund Balance - Current -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 1 of 1 LICENSE AGREEMENT THIS LICENSE AGREEMENT (“Agreement”) is made as of the ___ day of September, 2025 (“Effective Date”), by and between HMT OF FAYETTEVILLE, LLC (“HMT”), and CITY OF FAYETTEVILLE, ARKANSAS (“City”), each, a “Party” and collectively the “Parties.” RECITALS: WHEREAS, HMT is the owner of certain real property in Fayetteville, Arkansas utilized as private parking lots with a street address of 313 W. Dickson Street and further identified as Washington County, Arkansas real estate parcel numbers 765-01708-000; 765-01703-000 and 765-01711-000 (the “Property”); and WHEREAS, HMT and City desire to enter into this Agreement for the usage of the Property as public parking with enforcement by City of its parking rules and regulations and for a sharing arrangement of revenues collected pursuant to the public parking usage . NOW, THEREFORE, in consideration of the obligations and promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 1.Recitals. The above recitals are true and correct and are hereby incorporated herein by this reference. 2.Grant of License; Use. Starting on the Commencement Date (as defined below), HMT hereby gives and grants to City, a limited license (the “License”) for the usage of the Property according to the terms stated herein. During the term of the License, the City shall operate the Property as a revenue producing off-street parking facility. City agrees, at its sole expense, to equip the Property with any necessary parking recordation and revenue collection system and to operate and maintain such system in a commercially reasonable manner. City also agrees to collect the parking revenues raised therefrom and to enforce the rules and regulations of the P roperty in a manner consistent with other city-managed parking facilities to ensure that motorists parking thereon are in compliance with the applicable parking regulations as they are now, or as may hereafter, be established by City. City further agrees to facilitate the purchase of parking permits for the Property and maintain associated customer accounts in a manner consistent with other city- managed parking facilities. It is agreed that the Parties will mutually agree on the amount of the parking rates charged and various other factors that may influence the parking rates, which may include, but are not necessarily limited to the season, day of the week or time of day. Notwithstanding the foregoing, HMT may designate certain personnel authorized to park on the Property at any time at no charge. Further, HMT reserves the right to use the Property, or any portion thereof, for such purposes as HMT deems necessary in its sole and absolute discretion at no charge. The Parties agree to coordinate regarding such specific usage and HMT agrees, except in extraordinary circumstances, to notify City at least five (5) business days in advance of its intent to use the Property, or any portion thereof, for such specific uses . During such 2nd 2 predetermined specific uses, neither City nor any party engaged by City shall provide any enforcement or revenue collection services at the Property. 3. Term; Termination. The term of the License shall begin on the first day of the month subsequent to passage of a resolution by the City authorizing this Agreement and execution of the Agreement by the Mayor or other authorized City personnel (the “Commencement Date”) and continue for an initial period of one (1) year from the Commencement Date. After such initial one (1) year period, the License shall automatically renew on the anniversary of the Commencement Date for additional one (1) year periods up to a maximum of five (5) additional years, provided the License is not otherwise terminated pursuant to the terms of this Agreement. Either Party may terminate this Agreement for any reason, in their sole and absolute discretion, upon the giving of written notice to the non-terminating Party at least sixty (60) days prior to the termination date. Upon termination, City shall remit all funds collected through the termination date and pay over to HMT the amounts as determined under this Agreement within thirty (30) days of the termination date. The obligation of City to account for and make payment to HMT pursuant to the terms herein shall survive the termination of this Agreement. City shall have no right to possession of the Property, or any portion thereof, beyond the expiration or termination of this Agreement. Nothing contained herein shall be construed as consent by HMT to any holding over by City after the expiration or termination of the License. Furthermore, nothing contained herein shall constitute a dedication of the Property to the public for general use and the Parties agree the Property remains the sole private property of HMT, notwithstanding the limited rights provided to City pursuant to this Agreement. Upon expiration or termination of this Agreement, neither HMT nor City will have any further rights or obligations hereunder, except those that by their terms survive the termination. 4. Compensation. During the term of this License, City agrees to pay over to HMT an amount equal to eighty-five percent (85%) of the gross revenues derived from parking permits or other parking transactions accrued for the Property. Said revenues shall be paid to HMT on a monthly basis and shall include a financial report regarding the transactions at the P roperty for such period. City shall retain the remaining fifteen percent (15%) of the gross revenues derived from parking permits or other parking transacti ons accrued for the Property. It is understood and agreed that gross revenues shall not be deemed to include fines or penalties paid to City as a result of enforcement action by City. 5. Condition of Premises. City hereby accepts the Property in “AS-IS” condition “WITH ALL FAULTS.” City shall at its own expense keep the Property in a clean and safe condition. HMT shall not assume any liabilities or responsibilities of parking enforcement or revenue collection for the Property pursuant to this Agreement. HMT shall not be responsible for any losses, damages or injuries caused by City or its employees, agents or third parties, including any third party retained by City to provide enforcement and/or collection services at the Property. 6. Claims or Demands. HMT understands and is aware that under Arkansas law City may not enter into a covenant or agreement to hold a party harmless or to indemnify a party from prospective damages. However, with respect to loss, expense, damage, liability, claims or demands either at law or in equity for actual or alleged injured per sons or property arising out of any negligent act or omission by either Party and their employees or agents in the performance of this 3 Agreement, the Parties agree that: (a) they will cooperate with one another in the defense of any action or claim brought against the other Party seeking the foregoing damages or relief; (b) they will in good faith cooperate with each other should either Party present any claims of the foregoing nature to any tribunal or commission with jurisdiction over such matter; (c) they will not take any action to frustrate or delay the prompt hearing on claims of the foregoing nature and will make reasonable efforts to expedite the adjudication of such claims; provided, however, both Parties reserve the right to assert in good faith all claims and defenses available to them in any such proceedings. 7. Performance of Work. Notwithstanding anything to the contrary contained in this Agreement, City shall not perform any construction on or alteration of the Property without HMT’s prior written consent. The Parties shall jointly approve any signage installed at the Property prior to installation. 8. Incidental Rights. Except as otherwise specifically provided or limited herein, the rights and obligations hereby created, granted and conveyed include all incidental rights reasonably necessary for the stated use and enjoyment of the License for the respective intended purposes. 9. Binding Effect; No Assignment. The provisions of this Agreement shall bind and inure to the benefit of the Parties and their respective successors and assigns. This Agreement is not intended to, and shall not, create any rights in, nor confer any benefits upon, anyone other than the Parties, their respective successors and assigns. Notwithstanding the foregoing, neither this Agreement nor any rights to any part of the Property may be assigned, sold, transferred or sublicensed or otherwise conveyed by City without the prior written consent of HMT. 10. Applicable Law; Amendment. This Agreement shall be construed in accordance with the laws of the State of Arkansas and shall not be amended, modified or terminated unless in writing executed by HMT and City. 11. No Waiver. The failure of any Party to exercise any right created hereunder or to insist upon strict compliance with any term, condition, or covenant specified herein shall not constitute a waiver of such right or the right to insist upon strict compliance with any such term, condition or covenant under this Agreement at any future time. 12. Entire Agreement; Severability. This Agreement contains the sole and entire agreement between the Parties with respect to the matters set forth herein. If any term, covenant, or condition of this Agreement or the application thereof to any person or circumstance shall to any extent be invalid or unenforceable, such term, covenant or condition or such application shall be deemed severable, and the application of such term, covenant or condition to persons or circumstances other than those as to which it was held invalid or unenforceable, and the remainder of this Agreement, shall not be affected thereby, and the remainder of this Agreement shall be valid and enforceable to the fullest extent permitted by law. 13. Attorneys’ Fees. The prevailing Party in any legal proceeding regarding this Agreement shall be entitled to recover from the other Party all reasonable attorneys’ and experts’ 4 fees and costs incurred by such prevailing Party in connection with such proceeding and any efforts or negotiations leading thereto. 14. Independent Parties. HMT and City are and shall remain independent parties at all times and for all reasons. This Agreement does not create a joint venture or partnership, and neither Party has the authority to bind the other with respect to any third party. 15. Rules of Construction. The Parties covenant and agree that the rule of construction that ambiguous provisions of an agreement are construed against the drafting party shall have no application or effect with respect to this Agreement. This Agreement shall be interpreted as if both Parties participated equally in its preparation and drafting. 16. Remedies. In addition to the remedies set forth elsewhere in this Agreement, each Party shall be entitled to exercise all other remedies provided by law or in equity to the same extent as if fully set forth herein word for word. No remedy herein conferred upon, or reserved to any Party shall exclude any other remedy herein, by law or in equity, but each shall be cumulative. 17. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, and all of which, when taken together, shall constitute one and the same document. This Agreement is valid, binding an enforceable when executed by an authorized individual on behalf of a party by means of (i) an electronic signature that complies with the federal Electronic Signatures in Global and National Commerce Act, state enactment s of the Uniform Electronic Transactions Act or any other relevant and applicable electronic signatures law; (ii) an original manual signature; or (iii) a faxed, scanned or photocopied manual signature. Each electronic signature or faxed, scanned or photocopied manual signature has for all purposes the same validity, legal effect and admissibility in evidence as an original manual signature. IN WITNESS WHEREOF, the Parties have executed this Agreement effective as of the Effective Date. HMT OF FAYETTEVILLE, LLC By: ___________________________________ Valerie Snow, Property Manager CITY OF FAYETTEVILLE, ARKANSAS By: Molly Rawn, Mayor Fayetteville, AR ExhibitOverride 1 The data contained herein was compiled from various sources for the sole use and benefit of the City of Fayetteville Geographic Information System and the public agencies it serves. Any use of the data by anyone other than the City of Fayetteville is at the sole risk of the user; and by acceptance of this data, the user does hereby agree to indemnify the City of Fayetteville and hold the City of Fayetteville harmless from and without liability for any claims, actions, cost for damages of any nature, including the city's cost of defense, asserted by user or by another arising from the use of this data. The City of Fayetteville makes no express or implied warrantees with reference to the data. No word, phrase, or clause found herein shall be construed to waive that tort immunity set forth under Arkansas law. Created: 8/13/2025 Credits: 2025 Imagery | EagleView Technologies | Surdex Corporation, City of Fayetteville, AR Map Author: 0 0.03 0.050.01 mi