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HomeMy WebLinkAbout57-02 RESOLUTIONRESOLUTION NO. 57-02 A RESOLUTION TO APPROVE A -LEASE AGREEMENT BETWEEN THE CITY OF FAYETTEVILLE AND SAGE HOUSE, A NON-PROFIT AGENdhY ANUI0 TERMINATE THE PREVIOUS LEASE OF•JUNE 5,2001 WHEREAS, the City of Fayetteville and Sage House agree that location of the rent subsidized transitional housing to be constructed by Sage House should be moved from its original tentative location on Deane Solomon Road to the Huntsville Avenue site. 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 approves the Lease Agreement (attached hereto as Exhibit A) with Sage House because it determines that the provision of rent subsidized transitional housing is a needed government service for the citizens of Fayetteville. Section 2. The Mayor of the City of Fayetteville is authorized to sign this Lease Agreement for the City. Section 3. The City specifically agrees to release Sage House from its previous requirements and duties within the lease of June 5, 2001, in exchange for Sage House's release of that land back to the City and its agre ment to fulfill the terms of the current lease (Exhibit A). PASSED and APPROVED this the 2nd day of April, 2002. APPROVED: By: jiiI DAN COODY Or ••••• er Woodruff, City Cle • NAME OF FILE: CROSS REFERENCE: Resolution No. 57-02 1 04/02/02 Resolution No. 57-02 04/02/02 Lease Agreement with Sage House — 03/13/02 Memo to Mayor Coody and the Council from Hugh Earnest, Urban Dev. Director, and Yolanda Fields, CDBG Coordinator, regarding Sage House Lease 06/05/01 Copy of Res. 72-01 06/05/01 Copy of the Lease Agreement with Sage House 04/02/02 Staff Review Form 04/03/02 Memo to Hugh Earnest, Urban Development Director, from Heather Woodruff, City Clerk NOTES: 410 Res. 57-02 % LEASE AGREEMENT This Agreement, made and entered into this 2nd day of April, 2002, by and between the City of Fayetteville, Arkansas, Lessor, and Sage House, Lessee, Witnesseth: WHEREAS, Sage House is a non-profit agency established and dedicated to serve as a rent subsidized transitional housing facility; and, WHEREAS, providing transitional housing is a valid public purpose, and, WHEREAS, Sage House will provide such service to Fayetteville citizens within the City of Fayetteville. NOW, THEREFORE, the parties hereto agree as follows: 1. Leased Premises. For and in consideration of the release of the June 5, 2001 lease and the covenants and agreements herein entered into and agreed upon by Sage House as obligations to the City of Fayetteville, the City lets, leases and demises unto Sage House, subject to the terms and conditions contained herein, the following described property situated in Washington County, Arkansas. A part of the Northeast Quarter (NEI/4) of the Northeast Quarter (NEI/4) of Section Twenty-two (22), Township Sixteen (16) North, Range Thirty (30) West of the 5th Principal Meridian, being more particularly described herewith as follows: Beginning at a point South 02° 47' 37" East 44.29 feet from the Northwest corner of the Northeast Quarter (NEI/4) of the Northeast Quarter (NET/4) of said Section 22, said point being on the West line of the NEI/4 of the NEI/4 of said Section 22 and on the South right-of-way line of Huntsville Road; running thence along said South right-of-way line South 87° 50' 21" East 155.34 feet; thence leaving said South right- of-way line of Huntsville Road South 010 28'11" East 258.35 feet; thence South 87° 28'11" East 60.00 feet; thence South 010 28' 11" East 65.00 feet; thence South 090 49' 11" East 225.00 feet; thence South 82° 40' 11" East 100.00 feet; thence South 8? 16' 19" East 43.03 feet; thence South 87° 28' 11" East 79.67 feet; thence South 02° 48' 08" West 125.00 feet; thence North 87° 50' 21" West 510.83 feet to the West line of the Northeast Quarter (NEI/4) of the Northeast Quarter (NEI/4) of said Section 22; thence with said West line North 02° 47' 37" East 679.67 feet, more or less, to the Point of Beginning, containing 4.22 acres, more or less, subject to rights-of-way and easements of record and subject to a public access easement, said easement being 60 feet in equal and uniform width, East of and adjacent to the West line of the property described hereinabove. To have and to hold said premises unto the said Sage House for and during the term herein stated, subject to the covenants, terms and conditions herein contained. Res. .57-02 2. Term. This lease shall commence on April 1, 2002, and shall extend for a term of ninety-nine (99) years, ending at midnight on March 31, 2101. 3. Consideration. The primary consideration for the City is Sage House's agreement in paragraph 4 to serve Fayetteville citizens. Sage House also agrees to the voluntary, immediate, and complete termination of the 99 -year lease with the City entered into on June 5, 2001, for property along Dean Solomon Road. 4. Use. Sage House agrees to use the lease premises for the purpose of constructing, operating and maintaining a rent subsidized transitional housing facility. If at any time the property ceases to be used for this purpose, the lease shall terminate. Sage House agrees to furnish rent subsidized transitional housing for Fayetteville citizens and residents throughout this lease period. Sage House shall deliver quarterly written reports to the Mayor's office concerning the number of Fayetteville citizens/residents housed or otherwise assisted by Sage House. 5. Improvements. Sage House may make any such improvements as are necessary to carry out the service of providing rent subsidized transitional housing facilities. Design for any such improvements shall be approved by the City of Fayetteville. Upon termination of this lease, all improvements shall become the property of the City. 6. Taxes. Sage House shall pay any and all ad valorem taxes and special improvement district taxes levied and assessed against said premises and the improvements located thereon during the term of this lease. 7. Notices. All notices, requests, demands and other communications required by or permitted hereunder shall be in writing and shall be directed to the following: City of Fayetteville 113 W. Mountain St. Fayetteville, AR 72701 Sage House 614 E. Emma Suite M401 Springdale AR 72764 8. Assignment. Sage House shall not assign this lease or sublet the lease premises without prior written consent of the City. Any such assignment or subletting shall in no way relieve Sage House from liability for the obligation imposed by this lease. Sage House may only be released from liability for the obligation imposed by this lease by a specific written release executed by the City. 9. Insurance. Res. 57-02 A. Sage House shall be solely responsible for maintaining insurance on its property, including movables, trade fixtures, furniture, furnishings and inventory, as well as improvements to the property. B. Sage House shall, during the term of this lease, maintain public liability insurance. The limits of such public liability insurance shall not be less than $500,000.00 per person and $500,000.00 per accident. The policy shall contain a clause that the insurer will not cancel or change the insurance without giving the City of Fayetteville, ten days prior written notice. A certificate of such insurance shall be delivered to the City. 10. Maintenance. Sage House shall be responsible for all maintenance, routine preventative or corrective, on any and all improvements made to the leased property. 11. Compliance with Laws. Sage House agrees not to violate any law, ordinance, rule or regulation of any governmental authority having jurisdiction of the leased premises. This agreement shall be governed by the laws of the State of Arkansas. U. Waste/Nuisance. Sage House agrees not to commit waste, nor permit waste to result or to be done to or upon the aforesaid premises. Further, Sage House agrees not to operate, nor permit to be operated, nor to exist thereon or therein, any public or private nuisance. 13. Title and Quiet Enjoyment. The City of Fayetteville covenants and warrants that it is the owner in fee simple absolute of the leased premises and may lease said premises as herein provided. Upon the observance and performance of all the covenants, terms and conditions upon Sage House's part to be observed and performed, Sage House shall peaceably and quietly hold and enjoy the demised premises for the term hereby demised without hindrance or interruption by the City or any other person or persons lawfully or equitably claiming by, through or under the City, subject to the terms and conditions of this lease. 14. 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. This lease agreement supersedes all prior agreements, contracts and understandings of any kind between the parties relating to the subject matter hereof. This lease expressly terminates the lease ofJune, 2001, wherein the City had leased property to Sage House along Dean Solomon Road. The City is released from any further duties and obligations pursuant to that earlier lease. Res. 57-02 IN WITNESS WHEREOF, the parties hereto have hereunto set their hand and seals on this the rd day of April, 2002. Awe i•» atilk oodruff, City CI f • ak: s r no' ATTEST: Title: AVe Jr- PG174— CITY OF FAYETTEVILLE, Lessor By: SAGE HOUSE, Lessee By: Title: 2(2/Le-a-JCL,/ 9-1/0te iSpc: • 1 And estaarc-- ? 446 VVE-22-Ag-...t heleirea,,/ We ,Ci 1 510.83 Title: Sage House Property Descnption Date. 02-27-2002 Scale: 1 inch = 100 feet File: Sactenm?. des IIIData and Deed Call Listing of Fil ageprp2.des Tract 1: 0.000 Acres: 0 Sq Feet: Closure = s02.4737w 44.29 Feet: Precision =1/ I: Perimeter = 44 Feet Tract 2. 4.224 Acres: 183998 Sq Feet: Closure = n85.2703w 0.04 Feet: Precision =1/51204: Perimeter = 2302 Feet Tract 3: 0.936 Acres. 40778 Sq Feet: Closure = n00.0000e 0.00 Feet: Precision >1/999999: Perimeter = 1479 Feet Tract 4: 0.209 Acres: 9095 Sq Feet: Closure = n29.5923w 0.01 Feet: Precision =1/136307: Perimeter = 1856 Feet Tract 5: 0.206 Acres: 8990 Sq Feet: Closure = n66.1748w 0.00 Feet: Precision =1/553120: Perimeter = 1828 Feet Tract 6: 0.086 Acres: 3753 Sq Feet: Closure = n07.2651e 0.00 Feet: Precision =1/90027: Perimeter = 310 Feet 001=NO2.4737E 44.29 002=®1 Sage House Leased Prop. 003=S87.5021E 155.34 00@S01.281 IE 258.35 005=S87.2811E 60.00 006=S01.2811E 65.00 007=S09.491IE 225.00 008=S82.401 IE 100 009S85.1619E 43.03 0lIS87.2811E 79.67 011=S02.4808W 125.00 012=N87.5021W 510.83 013=NO2.473'7E 679.67 014=-®1 Access Easement 015=S87.5021E 60 016=-s02.4737w 679.67? 017=N87.5021W 60 018=-NO2.4737E 679.67 019(4)1 South Esmt. Line 021:frs02.4737w 18.63 021=s29.4009e 50.55 022m35.4132e 166.08 023=s29.5834e 194.19 024=s30.5638e 341.24 025m31.1559e 157.14 026=n02.4808e 17.85 027=n31.1559w 14232 028=n30.5638w 341.13 029=n29.5834w 194.60 03035.4132w 166.05 031--m29.4009w 65.74 032=®1 North H20 Esmt Line 033=-s29.4009e 65.74 034=s35.4132e 166.05 035=s29.5834e 194.60 036=s30.5638e 341.13 03731.1559e 142.32 038=n01.4808e 18.33 03n31.1559w 126.93 040n30.5638w 341.02 041-=n29.5834w 195.01 042=1135.4132w 166.02 043=n29.4009w 59.01 044mi87.5021w 11.77 04511 Drainage Easement Area 046=/N87.281 IW 30 047=587.2811E 30 048=S02.4808W 125 04N87.5021W 30 0511102.4805e 125.19? LEASE AGREEMENT This Agreement, made and entered into this 2nd day of April, 2002, by and between the City of Fayetteville, Arkansas, Lessor, and Sage House, Lessee, Witnesseth: WHEREAS, Sage House is a non-profit agency established and dedicated to serve as a rent subsidized transitional housing facility; and, WHEREAS, providing transitional housing is a valid public purpose; and, WHEREAS, Sage House will provide such service to Fayetteville citizens within the City of Fayetteville NOW, THEREFORE, the parties hereto agree as follows: 1. Leased Premises. For and in consideration of the release of the June 5, 2001 lease and the covenants and agreements herein entered into and agreed upon by Sage House as obligations to the City of Fayetteville, the City lets, leases and demises unto Sage House, subject to the terms and conditions contained herein, the following described property situated in Washington County, Arkansas. A part of the Northeast Quarter (NE1/4) of the Northeast Quarter (NE1/4) of Section Twenty-two (22), Township Sixteen (16) North, Range Thirty (30) West of the 5th Principal Meridian, being more particularly described herewith as follows: Beginning at a point South 02° 47 37" East 44.29 feet from the Northwest comer of the Northeast Quarter (NE1/4) of the Northeast Quarter (NE1/4) of said Section 22, said point being on the West line of the NE1/4 of the NE1/4 of said Section 22 and on the South right-of-way line of Huntsville Road; running thence along said South right-of-way line South 87° 50' 21" East 155.34 feet; thence leaving said South right- of-way line of Huntsville Road South 010 28'11" East 258.35 feet; thence South 87° 28'11" East 60.00 feet; thence South 010 28' 11" East 65.00 feet; thence South 090 49' 11" East 225.00 feet; thence South 82° 40' 11" East 100.00 feet; thence South 85° 16' 19" East 43.03 feet; thence South 87° 28' 11" East 79.67 feet; thence South 02° 48' 08" West 125.00 feet; thence North 87° 50' 21" West 510.83 feet to the West line of the Northeast Quarter (NE1/4) of the Northeast Quarter (NE1/4) of said Section 22; thence with said West line North 02° 47' 37" East 679.67 feet, more or less, to the Point of Beginning, containing 4.22 acres, more or less, subject to rights-of-way and easements of record and subject to a public access easement, said easement being 60 feet in equal and uniform width, East of and adjacent to the West line of the property described hereinabove. To have and to hold said premises unto the said Sage House for and during the term herein stated, subject to the covenants, terms and conditions herein contained. 2. Term This lease shall commence on April 1, 2002, and shall extend for a term of ninety-nine (99) years, ending at midnight on March 31, 2101. 3. Consideration. The primary consideration for the City is Sage House's agreement in paragraph 4 to serve Fayetteville citizens. Sage House also agrees to the voluntary, inunediate, and complete termination of the 99 -year lease with the City entered into on June 5, 2001, for property along Dean Solomon Road. 4. Use. Sage House agrees to use the lease premises for the purpose of constructing, operating and maintaining a rent subsidized transitional housing facility. If at any time the property ceases to be used for this purpose, the lease shall terminate. Sage House agrees to furnish rent subsidized transitional housing for Fayetteville citizens and residents throughout this lease period. Sage House shall deliver quarterly written reports to the Mayor's office concerning the number of Fayetteville citizens/residents housed or otherwise assisted by Sage House. 5. Improvements. Sage House may make any such improvements as are necessary to carry out the service of providing rent subsidized transitional housing facilities. Design for any such improvements shall be approved by the City of Fayetteville. Upon termination of this lease, all improvements shall become the property of the City. 6. Taxes. Sage House shall pay any and all ad valorem taxes and special improvement district taxes levied and assessed against said premises and the improvements located thereon during the term of this lease. 7. Notices. All notices, requests, demands and other communications required by or permitted hereunder shall be in writing and shall be directed to the following: City of Fayetteville 113 W. Mountain St. Fayetteville, AR 72701 Sage House 614 E. Emma, Suite M401 Springdale, AR 72764 8. Assignment. Sage House shall not assign this lease or sublet the lease premises without prior written consent of the City Any such assignment or subletting shall in no way relieve Sage House from liability for the obligation imposed by this lease. Sage House may only be released from liability for the obligation imposed by this lease by a specific written release executed by the City. 9. Insurance. A. Sage House shall be solely responsible for maintaining insurance on its property, including movables, trade fixtures, furniture, furnishings and inventory, as Well as improvements to the property. B. Sage House shall, dunng the term of this lease, maintain public liability insurance. The limits of such public liability insurance shall not be less than $500,000.00 per person and $500,000.00 per accident. The policy shall contain a clause that the insurer will not cancel or change the insurance without giving the City of Fayetteville, ten days prior written notice. A certificate of such insurance shall be delivered to the City. 10. Maintenance. Sage House shall be responsible for all maintenance, routine preventative or corrective, on any and all improvements made to the leased property. 11. Compliance with Laws. Sage House agrees not to violate any law, ordinance, rule or regulation of any governmental authority having jurisdiction of the leased premises. This agreement shall be governed by the laws of the State of Arkansas. 12. Waste/Nuisance. Sage House agrees not to commit waste, nor permit waste to result or to be done to or upon the aforesaid premises. Further, Sage House agrees not to operate, nor permit to be operated, nor to exist thereon or therein, any public or private nuisance. 13. Title and Quiet Enjoyment. The City of Fayetteville covenants and warrants that it is the owner in fee simple absolute of the leased premises and may lease said premises as herein provided. Upon the observance and performance of all the covenants, terms and conditions upon Sage House's part to be observed and performed, Sage House shall peaceably and quietly hold and enjoy the demised premises for the term hereby demised without hindrance or interruption by the City or any other person or persons lawfully or equitably claiming by, through or under the City, subject to the terms and conditions of this lease. 14. 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. This lease agreement supersedes all prior agreements, contracts and understandings of any kind between the parties relating to the subject matter hereof. This lease expressly terminates the lease of June, 2001, wherein the City had leased property to Sage House along Dean Solomon Road. The City is released from any further duties and obligations pursuant to that earlier lease. IN WITNESS WHEREOF, the parties hereto have hereunto set their hand and seals on this the rd day of April, 2002. ATTEST: By: Heather Woodruff, City Clerk ATTEST: Title: Ave *AI CW CITY OF FAYETTEVILLE, Lessor By: DAN COODY, Mayor SAGE HOUSE, Lessee SAGE HOUSE PROPERTY LEASE 1033 E HUNTSVILLE ROAD FAYETTEVILLE, AR 72701 PROPERTY LEASE DESCRIPTION: A part of the Northeast Quartet (NE%) of the Northeast Quarter (NE%) of Section Twenty-two (22), Township Sixteen (16) North, Range Thirty (30) West of the 5'h Principal Meridian, being more particularly described herewith as follows: Beginning at a point South 02° 47' 37" East 44.29 feet from the Northwest corner of the Northeast Quarter (NE%) of the Northeast Quarter (NE%) of said Section 22, said point being on the West line of the NE% of the NE% of said Section 22 and on the South nght of way line of Huntsville Road; running thence along said South right of way line South 87° 50' 21" East 155.34 feet; thence leaving said South right of way line of Huntsville Road South 010 28' 11" East 258.35 feet; thence South 87° 28' 11" East 60.00 feet, thence South 010 28' 11" East 65.00 feet; thence South 09° 49' 11" East 225.00 feet; thence South 82° 40' 11" East 100.00 feet; thence South 85° 16' 19" East 43.03 feet; thence South 87° 28' 11" East 79.67 feet; thence South 02° 48' 08" West 125 00 feet; thence North 87° 50' 21" West 510.83 feet to the West line of the Northeast Quarter (NE%) of the Northeast Quarter (NE%) of said Section 22; thence with said West line North 02° 47' 37" East 679.67 feet, more or less, to the Point of Beginning, containing 4.22 acres, more or less, subject to rights of way and easements of record and subject to a public access easement, said easement being 60 feet in equal and uniform width, East of and adjacent to the West line of the property described hereinabove.. edc/ 02-27-02 FAYETTEVRLE THE CITY OF FAYETTEVILLE, ARKANSAS 9 Date: To: March 13, 2002 The Mayor and Council From: Hugh Eamest, Urban Development Director Yolanda Fields, CDBG Coordinator Subject: Sage House Lease Background The City Council, in June 2001, approved a 99 -year lease between the city of Fayetteville and the Sage House for a 2.715 acre parcel on Deane Solomon road. The Sage House is a non-profit agency that was established to provide assistance to clients requiring transitional housing. During this time period, City staff was also involved in a review of the status of the Business and Technology park acreage, which lies east of this location. As part of that review, we opened a conversation with representatives of the Sage House to ensure that this site was the location that would best serve their long-term interests. The City had acquired some acreage adjacent to Huntsville road, which had not been available when the negotiations on the Deane Solomon site occurred. The Board of the Sage House began an evaluation on the advantages and disadvantages of the two sites and has determined that the Huntsville site is preferable and will best meet their long-term goals. As an aside, City staff is of the opinion that the City interests will best be met by reserving the Dean Solomon site for a possible use associated with the Business and Technology Park. Current Situation Several months ago, members of the City Council toured the Huntsville Road site and at that time expressed no concern with a possible change in the area to be leased. The area proposed for the lease is shown on the attached plat. We will also provide the council with an aerial photo of the area with the property in question highlighted. If the City Council approves this lease, the Board of the Sage House is prepared to begin the permitting process for a building on this site. Recommendation It is our recommendation that the lease with the Sage House be approved 113 WEST MOUNTAIN 72701 501 521-7700 FAX 501 575-8257 0 Mar 01 02 03:55p RESOLUTION NO. 72-01 P.1 C Fp V 441 I in I se A RESOLUTION TO APPROVE A LEASE AGREEMENT BETWEEN THE CITY OF FAYETTEVILLE AND SAGE HOUSE, A NON-PROFIT AGENCY BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. The City Council of Fayetteville, Arkansas, hereby approves the Lease Agreement (attached hereto as Exhibit A) with Sage House because it determines that the provision of rent subsidized transitional housing is a needed government service for the citizens of Fayetteville. Section 2. The Mayor of the City of Fayetteville is authorized to sign this Lease Agreement for the City. PASSED and APPROVED this the 5— day of June, 2001 ATTEST: By: 4-i&u_/tt Heather Woodruff, City Clerk APPROVED: By: 441 COODY, May 0 Mar 01 02 03:56p LEASE AGREEMENT This Agreement, made and entered into this C day of June, 2001, by and between the City of Fayetteville, Arkansas, hereinafter called "Lessor," and Sage House, hereinafter called "Lessee," Witnesseth: WHEREAS, Sage House is a non-profit agency established and dedicated to serve as a rent subsidized transitional housing facility, and, COPY, WHEREAS, providing transitional housing is a valid public purpose; and, WHEREAS, Sage House will provide such services within the City of Fayetteville. NOW, THEREFORE, the parties hereto agree as follows: 1. Leased Premises. For and in consideration of the rents, covenants and agreements herein entered into and agreed upon by the Lessee as obligations to the Lessor, the Lessor lets, leases and demises unto Lessee, subject to the tenns and conditions contained herein, the following described property situated in Washington County, Arkansas. A part of the Northwest Quarter (NW1/4) of Section 33, Township 17 North Range 30 West, Washington County, Arkansas, being more particularly described as follows: Commencing at the Northwest comer of said Section 33; thence along the west line of said Section 33, South 02°28'11" West 107/67 fcct, to the Point of Beginning; thence leaving said West line of Section 33, South 87°22'27" East 329.47 feet, to a point on the existing centerline of Deane Solomon Road; thence with said centerline South 02°29'56" West 395.06 feet to a PK nail; thence leaving said centerline North 87°22'27" West 329.27 feet along the proposed north right of way of Crystal Springs Drive, to a set iron pin on the west line of said Section 33, thence along said West line, North 02°28'1 I" East 395.06 feet, to the Point of Beginning, containing 2.987 acres, mom or less. LESS AND EXCEPT thirty (30) feet of equal and uniform width off the East side of the above described property, containing 0/72 acre, more or less, being within the existing west right of way of Dean Solomon Road. Containing a net acreage of 2.715 acres, more or less. To have and to hold said premises unto the said Lessee for and during the term herein stated, subject to the covenants, terms and conditions herein contained. 2. Term. This lease shall commence on July 1, 2001, and shall extend for a terrn of ninety-nine (99) years, ending at midnight on June 30, 2100, 3. Rent In addition to other good and valuable consideration as set forth herein, Lessee agrees to pay to Lessor as rental the sum of One Dollar ($1.00) to be paid annually, with the first payment due upon execution of this agreement and subsequent payments due on the first day of each and every year thereafter during the term of this lease. P.2 Mar 01 02 03:56p 4. Use. Lessee agrees to use the lease premises for the purpose of constructing, operating and maintaining a rent subsidized transitional housing facility. If at any time the property ceases to be used for this purpose, the lease shall terminate. Lessee agrees to furnish rent subsidized transitional housing for Fayetteville citizens and residents throughout this lease period. Lessee shall deliver quarterly written reports to the Mayor's office concerning the number of Fayetteville citizens/residents housed or otherwise assisted by Sage House. 5. Improvements. Lessee may make any such improvements as are necessary to carry out the service of providing rent subsidized transitional housing facilities. Design for any such improvements shall be approved by the City of Fayetteville. Upon termination of this lease, all improvements shall become the property of Lessor. 6. Taxes. Lessee shall pay any and all ad valorem taxes and special improvement district taxes levied and assessed against said premises and the improvements located thereon during the term of this lease. 7. Notices. All notices, requests, demands and other communications required by or permitted hereunder shall be in writing and shall be directed to the following: City of Fayetteville 113 W. Mountain St. Fayetteville, AR 72701 Sage House 614 E. Emma Suite M401 Springdale AR 72764 8. Assignment. Lessee shall not assign this lease or sublet the lease premises without prior written conscnt of the Lessor. Any such assignment or subletting shall in no way relieve Lessee form liability for the obligation imposed by this lease. Lessee may only be released from liability for the obligation imposed by this lease by a specific written release executed by Lessor. 9. Insurance. A. Lessee shall be solely responsible for maintaining insurance on its property, including movables, trade fixtures, furniture, furnishings and inventory, as well as improvements to the property. 13. Lessee shall, during the term of this lease, maintain public liability insurance. The limits of such public liability insurance shall not be less than $500,000.00 per person and $500,000.00 per accident. The policy shall contain a clause that the insurer will not cancel or change the insurance without giving Lessor, ten days prior written notice. A certificate of such insurance shall be delivered to Lessor. 10. Maintenance. Lessee shall be responsible for all maintenance, routine preventative or corrective, on any and all improvements made to the leased property. P • 3 Mar 01 02 03:56p 11. Compliance with Laws. Lessee agrees not to violate any law, ordinance, rule or regulation of any governmental authority having jurisdiction of the leased premises. This agreement shall be g-ovemed by the laws of the State of Arkansas. 12. Waste/Nuisance. Lessee agrees not to commit waste, nor permit waste to result or to be done to or upon the aforesaid premises. Further, Lessee agrees not to operate, nor permit to be operated, nor to exist thereon or therein, any public or private nuisance. 13. Title and Quiet Enjoyment. Lessor covenants and warrants that it is the owner in fee simply absolute of the leased premises and may lease said premises as herein provided. Upon payment by Lessee of the rents herein provided and upon the observance and performance of all the covenants, terrns and conditions upon Lessee's part to be observed and performed, Lessee shall peaceably and quietly hold and enjoy the demised premises for the term hereby demised without hindrance or interruption by Lessor or any other person or persons lawfully or equitably claiming by, through or under Lessor, subject to the terms and conditions of this lease. 14. 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. 15. 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. This lease agreement supersedes all prior agreements, contacts and understandings of any kind between the parties relating to the subject matter hereof. IN WITNESS WHEREOF, the parties hereto have hereunto set their hand and seals on this C day ofJune, 2001. CITY OF FAYETTEVILLE, Lessor ATTEST: By: 4Z;z7t_7(2,cr4e eather Woodruff, City Clerk AN COODY, Mayor p.4 STAFF REVIEW FORM )c AGENDA REQUEST CONTRACT REVIEW GRANT REVIEW For the Fayetteville City Council meeting of Aof a, 1o03 FROM: Hugh Earnest Name Urban Development Community Dev, Division Department ACTION REQUIRED: A Resolution to Approve a Lease Agreement between the City of Fayetteville and Sage House, a non-profit agency. COST TO CITY: Cost of this Request Account Number Project Number Category/Project Budget Category/Project Name Funds Used To Date Program Name Ft Remaining Balance Fund BUDGET REVIEW: udget Coordinator Budgeted Item Budget Adjustment Attached Administrative Services Director CONTRACT/GRANT/LEASE REVIEW: City At orney Purchasing Officer ¼3,/goi/03.i Date c,c4 3f-01, aAk- \ 'tat GRANTING AGENCY: ADA Coordinator Date Internal Audi Date Grant Officer Date 212-° / 0 3° --- Date Date STAFF RECOMMENDATION: Division Head /I De Director Adm Svcsprector 001 ayor 614..deAth Date Date Da Date 4< D Cross Reference New Item: Yes No Prey Ord/Res #: Orig Contract Date: