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HomeMy WebLinkAbout20-82 RESOLUTION• I RESOLUTION NO. 40-2X' • A RESOLUTION AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A LEASE -PURCHASE AGREEMENT WITH FULBRIGHT INVESTMENT COMPANY FOR PROPERTY ON ROCK STREET BETWEEN.BLOCK AVENUE AND CHURCH AVENUE (PART OF BLOCK 40 IN THE ORIGINAL CITY PLAT). BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF FAYETTEVILLE, ARKANSAS: That the Mayor and City Clerk are hereby authorized and directed to execute a lease -purchase agreement with Fulbright Investment Company for property on Rock Street between Block Avenue and Church Avenue (part of Block 40 in the original city plat); said agreement to provide a one-year leasee';) at $450.00 per month with two six month renewal options and an option to purchase at a price of $80,000.00. A copy of the lease -purchase agreement authorized for execution hereby is attached hereto, marked Exhibit "A", and made a part hereof. PASSED AND APPROVED this day of J4/124071, 1982. ATTEST: APPROVED: (5 (7( MAYOR • LEASE AGREEMENT WITH OPTION TO PURCHASE • • Lease made February 2, 1982, between FULBRIGHT INVESTMENT CO., a corporation organized under the laws of the State of Arkansas, herein referred, to as lessor, and the CITY OF FAYETTEVILLE, ARKANSAS, a municipal corporation organized under the laws of the State of Arkansas, herein referred to as lessee. In consideration of the mutual covenants -contained herein, the parties agree as follows SECTION ONE DESCRIPTION OF PREMISES Lessor leases to lessee the following described real property located in Washington County, Arkansas, and all improvements thereon: Part of Block Number Forty (40) in the original plat of the City of Fayetteville; described as follows, to -wit: Beginning at a point one hundred sixty-two and one-half (1622) feet east of the Northwest corner of said block and running thence South one hundred forty-one and one-half (1412) feet; thence east eighty (80) feet; thence North one hundred forty-one and one-half (1412) feet; thence West eighty (80) feet to the place of beginning and being known and described as Lot Three (3) in said block. SECTION TWO TERM The term of this lease is one (1) year, beginning on April 1, 1982, and terminating on March 31, 1983, at 12:00 o'clock p.m. SECTION THREE RENT The total rent under this lease is Five Thousand Four Hundred and No/00 ($5,400.00) Dollars. Lessee shall pay lessor that amount in instalments of Four Hundred Fifty and No/00 ($450.00) Dollars each month, beginning on April 1, 1982, with succeeding payments due on the first day of each month thereafter during the term of the lease. SECTION FOUR UTILITIES Lessee shall arrange and pay for all utilities furnished to the premises for the term of this lease, including electricity, gas, water, sewer, and telephone service. EXHIBIT ` A Pi -2- • SECTION FIVE REPAIRS AND MAINTENANCE Lessee shall maintain the premises and keep them in good repair at its expense, except that side and rear exterior walls, the foundation, and the roof will be maintained in good condition by lessor. Lessee shall maintain and repair windows, doors, skylights, adjacent sidewalks, the building • -front, and interior -walls. Lessee shall have the right to make minor modifications -to the premises. SECTION SIX DELIVERY, ACCEPTANCE, AND SURRENDER OF PREMISES Lessor represents that the premises are in fit condition for use by lessee. Acceptance of the premises by lessee shall be construed as recognition that the premises are in a good state of repair and in sanitary condition. Lessee shall surrender the premises at the end of the lease term, or any renewal thereof, in the same condition as when lessee took possession, allowing for reasonable use and wear, damage by acts of God, including fires and storms, and minor modifications made by lessee. Before delivery, lessee shall remove all business signs placed on the premises by lessee and restore the portion of the premises on which they were placed in the .same condition as when received. • SECTION SEVEN PARTIAL DESTRUCTION OF PREMISES • Partial destruction of the leased premises shall not render this lease void or voidable, nor terminate it except as herein provided. If the premises are partially destroyed during the term of this lease, lessor shall repair them when such repairs can be made in conformity with governmental laws and regulations, within sixty (60) days of the partial destruction. Written notice of the intention of lessor to repair shall be given to lessee within fifteen (15) days after any partial destruction. Rent will be reduced proportionately to the extent to which the repair operations interfere with the business conducted on the premises by lessee. -If the repairs cannot be made within the time specified above, lessor shall have the option to make them within a reasonable time and continue this lease in effect with proportional rent rebate to lessee as provided for herein. If the repairs cannot be made in sixty (60) days, and if lessor does not elect to make them within a reasonable time, either party shall have the option to terminate this lease. SECTION EIGHT ENTRY ON PREMISES BY LESSOR Lessor reserves the right to enter on the premises at reasonable times to inspect them, perform required maintenance and repairs, or make additions, alterations, or modifications to any part of the building in which the premises are located, • -3- .15 and lessee shall permit lessor to do so. Lessor may erect scaffolding, fences, and similar structures, post relevant notices, and place moveable equipment in connection with making alterations, additions, or repairs, all without incurring liability to lessee for disturbance of quiet enjoyment of the premises, or loss of occupation thereof. SECTION NINE ASSIGNMENT, SUBLEASE, OR LICENSE Lessee shall not assign or sublease the premises, or any right or privilege connected therewith, or allow any other person except agents and employees of lessee to occupy the premises or any part thereof without first obtaining the written consent of lessor. A consent by lessor shall not be a consent to a subsequent assignment, sublease, or occupation by other persons. An unauthorized assignment, sublease, or license to occupy by lessee shall be void and shall terminate the lease at the option of lessor. The interest of lessee in this lease is not assignable by operation of law without the written consent of lessor. SECTION TEN BREACH The failure of lessee to comply with each and every term and condition of this lease shall constitute a breach of this lease. Lessee shall have fifteen (15) days after receipt of written notice from lessor of any breach to correct the conditions specified in the notice, or if the corrections cannot be made within the fifteen (15) day period, lessee shall have a reasonable time to correct the default if action is commenced by lessee within fifteen (15) days after receipt of the notice. SECTION ELEVEN REMEDIES OF LESSOR FOR BREACH BY LESSEE Lessor shall have the following remedies in addition to its other rights and remedies in the event lessee breaches this lease agreement and fails to make corrections as set out in Section Ten: 1. Lessor may re-enter the premises immediately and remove the property and personnel of lessee, store the property in a public warehouse or at a place selected by lessor, at the expense of lessee. 2. After re-entry lessor may terminate the lease on giving ten (10) days' written notice of termination to lessee. Without such notice, re-entry will not terminate the lease. On termination lessor may recover from lessee all damages proximately resulting from the breach, including the cost of recovering the premises and the worth of the balance of this lease over the reasonable rental value of the premises for the remainder of the lease term, which sum shall be immediately duelessor from lessee. -4 - SECTION TWELVE CONDEMNATION Eminent domainproceedings resulting in the condemnation of a part of the premises leased herein, but leaving the remaining premises usable by lessee for the purposes of its business, will not terminate this lease unless lessor, at its option, terminates the lease by given written notice of termination to lessee. The effect of any condemnation, where the option to terminate is not exercised, will be to terminate -the lease as to the portion of the premises condemned, and the lease of the remainder of the demised premises shall remain intact. The rental for the remainder of the lease term shall be reduced by the amount that the usefulness of the premises has been reduced for the business purposes of lessee. Lessee hereby assigns and transfers to lessor any claim he may have to compensation for damages as a result of any condemnation. SECTION THIRTEEN OPTION TO RENEW Lessor herebygrants to lessee the option to extend this lease for a further term of six (6) months commencing on April 1, 1983, and ending on September 30, 1983, both inclusive, subject to all of the provisions of this lease, including the $450.00 monthly rental rate herein; provided, however, that written notice of the exercise of this option shall be given by lessee to lessor at least ten (10) days before the expiration of the original term of this lease and, provided further that this option may be exercised by lessee only in the event all rents have been fully paid and that all provisions of this lease on the part of lessee to be observed have been fully and faithfully observed. A new lease agreement for the term of such extension shall be unnecessary on such extension, this agreement constituting a present demise for both the original and any extended term. At the end of the extended term hereinbefore provided, on condition that lessee shall then not be in default and also shall have served on lessor, at least ten (10) days before the end of such extended term, a notice in writing by registered mail, addressed to lessor at lessor's regular mailing address, stating that lessee desires a further extension, lessee shall be entitled to a second and final extension hereof for a further term of six (6) months. The monthly rent for such second extended term shall be $450.00. All other terms, are to be and remain in full force and effect in such second extension, as during the first extension, provided that lessee shall not be entitled to any other or further extension. A new lease agreement for the term of such extension shall be unnecessary on such extension, this agreement constituting a present demise for both the original and any extended term. SECTION FOURTEEN OPTION OF LESSEE TO PURCHASE Lessor grants to lessee the option to purchase the demised premises at any time during the original term of • • this lease or during any extended term for Eighty Thousand and No/00 ($80,000.00) Dollars, on the conditions that lessee give one (1) month's notice in writing of the exercise of this option to lessor which notice may be given to Hal Douglas, as agent of lessor, that this lease shall not have been previously terminated, and that lessee has observed and complied with all terms:and conditions of this lease required of lessee, up to the time of the exercise of that option and the payment of the purchase price therefor, in the manner provided. Lessor shall convey the demised premises by warranty deed, free and==clear of all liens and encumbrances, except those that lessee: may have created or suffered. The deed shall be accompanied by an abstract of title, showing a good and unencumbered title, passing under and by the resulting conveyance. On the delivery of the above described deed and abstract of title and payment of the purchase price, this lease shall become void. CITY OF FAYETTEVILLE, ARKANSAS, LESSEE BygGCX/ (;), Mayor ATTEST: ,ALL c Secretary FULBRIGHT INVESTMENT CO., LESSOR BY su3:4;t President II