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HomeMy WebLinkAbout36-96 RESOLUTION• • • RESOLUTION NO. 36-96 • • A RESOLUTION TO ENTER INTO AN AGREEMENT WITH WASHINGTON COUNTY TO LEASE THE OLD COURTHOUSE ANNEX BUILDING LOCATED AT 10 SOUTH COLLEGE AVENUE. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. Thi City Council hereby enters into an agreement with Washington County to lease the old courthouse annex building located at 10 South College, and the Mayor and City Clerk are hereby authorized to execute same. A copy of the agreement is attached hereto marked Exhibit "A" and made a part hereof. PASSED AND APPROVED this 19th day of March , 1996. ATTEST: By: Traci Paul, City Clerk F"PTCif% APPROVED: By: 4444, red Hanna, Mayor • • INTERLOCAL COOPERATION AGREEMENT LEASE OF COUNTY -OWNED BUILDING TO CITY OF FAYETTEVILLE, ARKANSAS WHEREAS, Act 430 of 1967, the Interlocal Cooperation Act (Ark Stat. 14-901 through 14- 908), permits counties and cities to cooperate with each other in providing public services; and WHEREAS, Washington County, Arkansas owns a building that the City of Fayetteville, Arkansas wishes to improve in order to expand public services for low and moderate income residents; NOW THEREFORE, in consideration of the mutual covenants contained herein, the County and the City hereby agree as follows: 1. The County hereby leases to the City the real property and all improvements thereon except the garage and other basement area located at 10 South College, Fayetteville, Arkansas and known as the Courthouse Annex, hereinafter referred to as Leased Property. The Leased Property contains 7,102 square feet, more or less. The City and any tenant(s) have the right to utilize any public parking in the general vicinity 2. The term of thi Lease shall be twenty (20) years and will commence on 24 l.', /6, /99/0 3. This Lease may not be terminated by either party during the first ten years or 120 months of the 20 -year term. Thereafter, the County may terminate this Lease after first giving the City sixty (60) days notice in writing. 4. In the event the County opts to exercise its right pursuant to paragraph 3, then it shall be obligated to repay any Community Development Block Grant funds (see paragraph 7) expended to improve or rehabilitate the property, at no interest, less credit accrued. Credit will accrue from the beginning of the lease term and at a rate of five (5) percent per year for each year the City leases the building. Repayment will be made to the City and in a lump sum amount. The parties understand that the County cannot obligate any funds beyond the current calendar year and, therefore, this obligation would be renewable annually. 5. In consideration for the use of the Leased Property, the City agrees to pay the County the sum of One Dollar ($1.00) and other good and valuable consideration payable on the date of the signing of this Agreement. 1 • / • 6. The City may undertake rehabilitation of the Leased Property upon commencement of this Lease. Rehabilitation and particular improvements thereof will be completed in accordance with all locally adopted building codes, local ordinances, state laws and federal regulations 7. The initial rehabilitation and improvements will be funded by the Community Development Block Grant which is awarded to the City by the U.S. Department of Housing and Urban Development (HUD). The City assumes full responsibility for compliance with rules and regulations goveming the Community Development Block Grant Program and expenditure of funds thereof during the term of this Agreement. 8. The County agrees that the City may use the Leased Property for any lawful purpose. The portion of the Leased Property rehabilitated or improved with Community Development Block Grant funds will be limited to occupancy by eligible public or private non-profit entities. Eligible public or private non-profit entities include those concerned with employment, crime prevention, child care, health, drug abuse, education, energy conservation, welfare, or recreational needs. The services provided by the eligible public or private non-profit entity(ies) must principally benefit persons or families having income that does not exceed 80% of the median income for the Fayetteville/Springdale Metropolitan Statistical Area as defined by HUD or benefit a clientele who are generally presumed to be principally low and moderate income persons such as abused children, battered spouses, elderly persons, handicapped persons, or homeless persons. 9. The City may enter into separate agreements with eligible tenants described above. The initial separate agreement will be with the current occupant, Northwest Arkansas Free Health Center and operations thereof, which currently occupies the Leased Property. 10. The City shall be responsible for payment of utilities on a prorated schedule applicable to the Leased Property, excluding the garage and basement area. Utilities include electric, natural gas, water, sewer, sanitation service, telephone and cable television. 11. The City agrees that, at its own expense, it will keep and maintain the Leased Property and all improvements thereon in good condition and repair at all times. Representatives of the County shall have the right to inspect the premises at reasonable times. The City further agrees to be responsible for janitorial and building maintenance and for the maintenance of all heating, electrical, plumbing, and air-conditioning equipment included as part of the Leased Property. 12. The City agrees to insure the Leased Property as is satisfactory to the County. Occupants of the building will provide other insurance for contents of the building as they deem necessary. 2 • • • 13. The City may require responsibility for payment of the costs of utilities, maintenance, or insurance under separate agreements with eligible tenants based upon an equitable cost sharing plan. 14. The City or the County may amend this Lease at any time provided that such amendments make specific reference to this Lease and are executed in writing, signed by a duly authorized representative of both parties, and approved by the City and the County governing bodies. Such amendments will not invalidate this Lease nor relieve nor release the City or the County from the obligations under this Lease. 15. The City may, at its discretion, amend this Lease to conform with federal, state or local governmental guidelines and policies. If such amendments result in a change in funding or scope of conditions as described herein to be undertaken as part of this Lease such modifications will be incorporated only by written amendment signed by both parties to this Lease. 16. The parties hereto agree to abide by the provisions of 24 CFR 570.611 with respect to conflicts of interest, and covenants that the parties hereto presently have no financial interest and shall not acquire any financial interest, direct or indirect, which would conflict in any manner or degree with the performance of activities under this Lease. These conflict of interest provisions apply to any person who is an employee, agent, consultant, officer, or elected official or appointed official of the City, the County, or of any designated public agencies or subrecipients which are receiving funds under the CDBG Program. It is acknowledged that Jessie Bryant is the Director of the Northwest Arkansas Free Health Center and is a member of the Washington County Quorum Court. Mrs. Bryant will abstain from voting on any matter in conjunction with this Agreement and amendments thereof. 17. Both the City and County do hereby reaffirm and will reassert their tort immunity. The parties shall indemnify and hold harmless the other, its officers, boards, commissions, agents, and employees against and from any and all claims, demands, causes of action, actions, suits, proceedings, damages (including but not limited to damages to property), cost of liabilities including the cost of liabilities of each with respect to its employees and cost of defending any and all such actions regarding any such actions and proceedings as set forth herein, of every kind and nature whatsoever, and regardless of the merit of any of the same arising out or pertaining to the services as herein agreed by the parties. This clause shall not be construed in any form or manner to waive their tort immunity as set forth under Arkansas law. 3 • • IN WITNESS WHEREOF, the City and the County have executed this Agreement on or as of the date first above written. Attest: Attest: Title City Clerk 4 CITY OFAFAYETTEYILLE, ARKANSAS Mayor