HomeMy WebLinkAbout123-04 RESOLUTION• •
RESOLUTION Nal 3 - 0 4
A RESOLUTION AUTHORIZING THE MAYOR AND THE
CITY CLERK TO EXECUTE A LEASE AMENDMENT
WITH THE RADISSON HOTEL TO EXTEND THE
EXISTING PARKING LEASE FOR A PERIOD OF ONE (1)
YEAR
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 the Mayor and the City Clerk to execute a Lease Amendment
with the Radisson Hotel to extend the existing parking lease for a period of one
(1) year. A copy of the Lease Amendment, marked Exhibit "A" is attached
hereto, and made a part hereof.
PASSED and APPROVED this 17th day of August 2004.
ATTEST:
SONDRA SMITH, City Clerk
APPROVED:
By:
DAN COODY, May
S
•
'U •
•
FAYETTEVILLE:
•
9:
'QKA14 '
a\r,"r,"
• •
AMENDMENT TO THE LEASE
BETWEEN
THE CITY OF FAYETTEVILLE AND THE RADISSON HOTEL
This Lease Amendment, entered into this
day of
,gitic ad 2004, by and between the City of Fayetteville, a municipal
corporation, and the Radisson Hotel, Fayetteville Arkansas.
In consideration of the mutual covenants and conditions hereinafter provided,
the City of Fayetteville and the Radisson Hotel agree as follows:
1. Lease Extension. The Radisson Hotel shall continue to lease parking spaces in
the Municipal Parking Deck for one (1) additional year, ending on the 30th day of
September, 2005, consistent with the terms and conditions set forth in the
original lease agreement dated October 16, 1990, which is attached hereto and
incorporated herein by reference as if set forth word for word in its entirety.
2. Non -waiver. It is agreed that the failure of any party to invoke any of the
available remedies under this Amendment or under law in the event of one or
more breaches or defaults by any party under the agreement shall not be
construed as a waiver of such provisions and conditions and shall not prevent
the parties from invoking such remedies in the event of any future breach or
default.
3. Severability. Each paragraph of this Amendment 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 shall remain in full force and effect.
4. Governing Law. This Amendment shall be interpreted according to and
enforced under the laws of the State of Arkansas.
5. Supplemental Nature of the Amendment. The parties agree and understand
that this Amendment is supplemental to the original Lease, and that it does not
alter, amend or abridge any of the rights, obligations, or duties of the parties not
expressly addressed herein.
1
•
• •
6. Warrant of Authority Each of the undersigned warrants that he or she has the
full right, power and authority to execute this lease on behalf of the party
indicated for the purposes herein contained.
IN WITNESS WHEREOF, the City of Fayetteville and the Radisson Hotel have
executed this Amendment on or as of the date first written above.
ATTEST. TH SON OT L
By.
ATTEST: CITY OF YETTEVILLE
on dt.tAigV-
SONDRA SMITH, City Clerk
By:
•
"-a , G�SY Oc'
▪ :
;FAYETTEVILLE'
▪ �,. :s.
%9s'9RKANst:,) 1
2
DAN COODY, Mayo
i
NAME OF FILE:
CROSS REFERENCE:
Resolution No. 123-04
wllease agreement
Document
•
NOTES:
1
07/21/04
memo to mayor & City Council
2
draft resolution
3
copy of lease agreement of 1990
4
Staff Review Form
5
memo to Sharon Crosson
6
7
8
9
10
11
12
13
14
15
16
17
NOTES:
i
eackson
elocitil/
Amendment to 1 Pase Agreement with Radisson Hotel y tch n5 IS $Q/
August 17, 2004 Council Meeting 1Y" Lf
Page 1 of 5
CONTRACT REVIEW MEMO
TO: Mayor Dan Coody
THRU: Gary Dumas, Director of Operations
FROM: Sharon Crosson, Parking Manager lieY
DATE: July 21, 2004
SUBJECT: Amendment to Lease Agreement with Radisson Hotel for Parking Garage
Lease
RECOMMENDATION
Staff recommends amending the Lease Agreement with the Radisson Hotel to extend the
term for one (1) additional year. The lease is for the use of 180 parking spaces in the
municipal parking garage located on Meadow Street.
BACKGROUND
The City entered into the original Lease Agreement with FOURTEN SOUTH
BROADWAY CORPORATION d/b/a The Hilton Hotel on October 16, 1990. The term
of the lease ran for a period of fourteen years and ends on September 30, 2004. The
Hotel leases the entire first level and third level of the parking garage. The parking
equipment was installed by the City of Fayetteville and was designed to collect revenues
for the Hotel. However, the equipment has been somewhat unreliable and many
motorists have been "stuck" in the parking garage.
DISCUSSION
City staff and the hotel management are working together to redesign the parking
equipment to be more efficient and profitable for the hotel and make parking easier for
the hotel clients and other downtown visitors. There are many aspects of the existing
lease that are subject to change with the final parking equipment plans, therefore, we
wish to leave the existing contract as is until the plan can be finalized and implemented.
BUDGET IMPACT
The Radisson Hotel currently pays $85,440.00 annually to the City for the lease of the
parking garage. This revenue would remain the same by amending the contract to run for
another year. The hotel pays the same rate per parking space as an individual pays for a
comparable space.
• •
RESOLUTION NO.
AN RESOLUTION AUTHORIZING THE MAYOR AND
THE CITY CLERK TO EXECUTE A LEASE AMENDMENT WITH
THE RADISSON HOTEL TO EXTEND THE EXISTING PARKING
LEASE FOR A PERIOD OF ONE (1) YEAR.
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 the Mayor and the City Clerk to execute a Lease Amendment
with the Radisson Hotel to extend the existing parking lease for a periodloffne
(1) year A copy of the Lease Amendment, marked Exhibitr'%A (iS aatttabhed
hereto, and made a part hereof. ,-''�
---
PASSED
PASSED and APPROVED this 17th day of Augu t 2004.
i J
APPROMEI "
1
4y:
DAFOODY, Mayor
NDRA MITH, City Clerk
•
CoPY
LEASE AGREEMENT
THIS LEASE made and entered into effective the //co >'' day of
Q-LtoLen. , 1990, by and between CITY OF FAYETTEVILLE,
ARKANSAS, hereinafter referred to as the "Landlord", and FOURTEN
SOUTH BROADWAY CORPORATION, hereinafter referred to as the
"Tenant".
WITNESSETH:
The Landlord, for and in consideration of the rents
hereinafter reserved, and of the covenants and agreements
hereinafter set forth, to be kept and performed by the Tenant, does
hereby grant, demise and lease to the Tenant, and the Tenant does
hereby hire, take and lease from the Landlord, that parcel of land
situated in the County of Washington and State of Arkansas, and
more particularly described as:
One hundred and eighty parking spaces located
in a multi-level parking deck located upon
real property more particularly described as:
A part of Block Numbered Fifteen (15) in the
original plat of the City of Fayetteville,
Arkansas, described as follows: Beginning at
a point 127 feet west of the northeast corner
of said Block Fifteen; and running thence west
177 feet; thence south 206 feet; thence east
177 feet; thence north 206 feet to the place
of beginning.
said parcel of land and parking spaces hereinafter referred to as
the "Leased Premises".
1. Term of Lease. This Lease shall be effective as of the
1st day of October, 1990 and shall run for a period of fourteen
(14) years, ending on 30th day of September, 2004.
2. Right of First Refusal. If at any time during the term
of this Lease the Landlord receives an acceptable bona fide offer
to purchase the Leased Premises, or any part thereof, the Landlord
shall submit a written copy of such offer to Tenant giving Tenant
thirty (30) days within which to elect to meet such offer.
At the expiration of the term of this Lease representatives of
the Landlord and Tenant agree to enter into discussions regarding
the feasibility and desirability of the Landlord selling and the
Tenant purchasing the entire multi-level parking deck.
3. Parking Spaces. This Lease shall be for the entire first
level of the Leased Premises consisting of Ninety -One (91) parking
a510
•
•
spaces, Forty -Nine (49) parking spaces on the third level of the
Leased Premises and, as leases to third parties of parking spaces
on the third level of the Leases Premises expire, such spaces shall
be rented by Tenant until Tenant's total rented parking spaces is
One Hundred and Eighty (180).
4. Rent. The Tenant shall pay to the Landlord as rent for
Leased Premises the following:
(a) From October 1, 1990 through September 30, 1993 the
sum of twenty-five dollars per month per parking space
rented on the first level of the Leased Premises and the
sum of twenty dollars per month per parking space rented
on the third level of the Leased Premises.
(b) Following the initial three years of the term of
this Lease and every three years thereafter until the
termination of this Lease, the Landlord shall adjust the
amount of rent to be charged for the next three years of
the leased term, provided however, the rent charged shall
never be in excess of the monthly rental per parking
space that is being charged to third parties.
The monthly rental shall be payable in consecutive monthly
installments payable in advance on or before the first day of every
calendar month.
5. Use. From and after the Possession Date, the Tenant and
his subtenants or occupants shall have the right to use the Leased
Premises, or permit the Leased Premises to be used or occupied for
any lawful use permitted by present and future building codes,
zoning and other laws.
6. Repairs.
The Landlord shall, during the term of this Lease and any
renewal or extension thereof, at its sole expense, keep the Leased
Premises in as good order and repair as it is at the date of the
commencement of this Lease, reasonable wear and tear and damage by
accidental fire or other casualty not within the control of
Landlord excepted. The Tenant shall not knowingly commit or
willfully permit to be committed on the Leased Premises any act or
thing contrary to the rules and regulations prescribed from time to
time by either federal, state or municipal authority.
7. Casualty. If at any time the Leased Premises or the
building which forms the principal component of the Leased Premises
should be damaged by fire or any major casualty to the fault of the
Lessee and the cost of repairing the damage does not exceed 35% of
the value of the improvements of the premises herein leased or the
building which forms the principal component part of the Leased
-2-
•
C o PY•
•
Premises, then Lessor shall as soon as reasonably practical repair
the damage caused by said fire or other casualty. If, however, the
damage should exceed 35% of the value of the improvements of the
premises herein leased or the building which formsthe principal
component part of the Leased Premises, then Lessor shall have the
option of either repairing said premises or terminating this Lease
as of the date of said fire or other casualty by notice to lessee
within thirty (30) days after said date. If the damages should
render the Leased premises untenantable for the use of Lessee's
business as set forth herein, the rental from the date of said
fire, or any major casualty not the fault of the Lessee, to the
date of the completion of the restoration of the premises shall be
abated, such abatement being figured on a pro rata basis of the
rentals, herein provided.
In the event the damage should exceed 35% of the value of the
improvements of the premises herein leased or the building which
forms the principal component part of the Leased Premises and the
Landlord makes the decision not to repair the Leased Premises such
a decision must be submitted in writing to the Tenant. Upon
receipt of the notice from Landlord the Tenant has thirty (30) days
to elect either, or both, of the following options:
(a) To purchase the entire Leased Premises from Landlord
at its then fair market value and/or
(b) to repair the Leased
exclusive expense with all
except for abatement of
continuing in effect.
Premises at Tenant's sole and
terms of the Lease Agreement,
rent provided for herein,
8. Lighting and Painting. Landlord shall, during the term
of this Lease and any renewal or extension thereof, at its sole
expense, keep, in the same manner as it is as of the date of the
commencement of this Lease, the Leased Premises lighted, have all
parking spaces properly striped and the premises painted.
9. Parking Attendant. Landlord shall, during the term of
this Lease and any renewal or extension thereof, at its sole
expense, provide a parking attendant for the Leased Premises who
shall be an employee of Landlord or Landlord's management company.
The parking attendant shall be present at the Leased Premises seven
days a week during the hours between 6:00 a.m. and midnight each
day. In lieu of a parking attendant the Landlord has the option to
install and maintain a mechanical device to control the ingress and
egress from the Leased Premises.
10. Insurance.
liability, fire and
Premises, including
necessary for its own
AMmd.ki ,etie.l.
The Landlord will maintain and pay for such
extended coverage insurance on the Leased
any improvements, as Landlord deems to be
protection. Tenant shall insure his interest
-3-
•
in the Leased Premises and improvements for his protection and will
not participate in any insurance carried by the Landlord.
11 Taxes. The Landlord shall pay all real estate taxes and
special assessments, if any, during the term of the Lease.
12. Utilities/Janitorial. The Landlord shall pay for all
utility service and janitorial service in the Leased Premises.
13. Nuisance. The Tenant covenants and agrees that Tenant
will not use or allow the Leased Premises to be used for any
purpose or in any manner which would constitute or create a
nuisance, which would constitute waste, which would interfere with
the lawful rights of owners, tenants or occupants to adjoining
property or which would in any way be contrary to the law,
ordinances, orders, rules, regulations or requirements of the
federal, state, county or municipal governments or any department,
board or bureau thereof. The Tenant further agrees that Tenant
will promptly comply with the requirements of any of the aforesaid
authorities with reference to the installation, erection,
construction, use, repair or modifications or any improvements
situated upon the Leased Premises during the term of this Lease.
14.
Premises
shall be
Holding Over. An occupancy by the Tenant of the Leased
beyond the expiration of this Lease as herein provided
a tenancy from month to month.
15. Notices. All notices, demands and requests provided for
or permitted to be given under this Agreement must be in writing
and shall be deemed .to have been properly given or served by
depositing the same in the United States Mail, addressed to the
Landlord or to the Tenant, as the case may be, prepaid and
certified mail, return receipt requested, at the party's last known
address. All notices, demands and requests shall be effective
seventy-two (72) hours after being deposited in the United States
Mail. Rejection or other refusal to accept or the inability to
deliver because of changed address of which no notice was given
shall be deemed to be receipt of the notice, demand or request.
Either party shall have the right from time to time and at any time
upon at least ten (10) days written notice thereof, to change their
respective addresses and each shall have the right to specify as
its address any other address within the United States of America.
16. Memorandum of Lease for Recording. From and after the
Possession Date, at the request of the Tenant, the Landlord and the
Tenant shall join in the execution of a Memorandum of Lease in
proper form for recording in the proper office or offices wherein
the property is situated.
17. Legal Representatives, Successors and Assigns. It is
further covenanted and agreed by and between the Landlord and the
6mdJVpar.6
-4-
•
COPY'
•
Tenant, that all covenants, agreements, provisions, conditions and
undertakings in this Lease contained shall extend to and be binding
upon the heirs, executors, successors and assigns of the respective
parties hereto, the same as if they were in every case named and
expressed, and shall be construed as covenants and conditions
running with the land and the reversion; and that wherever in this
Lease reference is made to either the Landlord or the Tenant
hereto, it shall be held to include and apply to (wherever and
whenever applicable) the heirs, executors, successors, personal or
legal representatives and assigns of the Landlord or the Tenant,
the same as if in each and every case so expressed.
18. Condemnation. If during the term of this Lease, or any
renewal thereof, all or substantially all of the Leased Premises
shall be taken or condemned by a competent authority for any
purpose or use, then the Lease shall terminate immediately after
the vesting of title in such authority and rent shall be paid to
and adjusted as of that day. The term "all or substantially all"
shall be deemed to mean a taking of all of the Leased Premises or
a taking of such portion of the Leased Premises that the Tenant
cannot reasonably operate in the remainder in substantially the
same manner as before.
19. Right Upon Default. Whenever the Tenant shall do either
of the following:
(a) Default in the payment of any installment of monthly
rent and continue in default for thirty (30) days after the
Landlord gives the Tenant written notice specifying the default; or
(b) Fails to timely pay monthly rental payments for four
or more months during any consecutive twelve (12) month period
during the term of this lease may, at the discretion of the Lessor
constitute default.
(c) Default in any other covenant of the Tenant in this
Lease and fail to commence (subject to unavoidable delay) to take
steps to remedy same within twenty (20) days after the Landlord
gives the Tenant written notice specifying same; then the Landlord
may terminate this Lease upon ten (10) days written notice of his
intent to so terminate, provided the termination shall not be
allowed if either of the following provisions are complied with
during the notice period or at any prior time:
(i) The Tenant proceeds to cure same or takes
remedies to cure same; or
(ii) The Tenant contests the amount claimed to be
due or any other item for which an amount could be estimated
(definite or estimated), and the Tenant deposits the contested
amount in an escrow account with instructions to the escrow agent
bmdsVgaos.h
-5-
•
to disburse the amount in accordance with the written agreement of
the Tenant and the Landlord or in accordance with the order of a
court exercising jurisdiction over the controversy.
20. Assignability. Tenant shall not, without the written
consent of Landlord, assign this lease, or any rights thereunder,
or sublet any part of the Leased Premises, provided however, Tenant
is authorized to assign this Lease as part of any sale of the hotel
that is located adjacent to the Leased Premises provided that, at
the time of the closing of the sale, it is the intention of the
purchaser to continue to operate the purchased improvements as a
hotel. Upon any assignment of this lease by the Tenant the Tenant
is released and discharged from any further obligations or
liabilities it has hereunder and any assignee of the Tenant shall
have all rights belonging to the Tenant under this Lease.
21. Entire Agreement. All previous negotiations and
understandings between the Landlord and the Tenant, or their
respective agents and employees, with respect to the Lease
Agreement set forth herein are merged in this Lease Agreement which.
alone fully and completely expresses the parties' rights, duties
and obligations.
22. Amendments. No waivers, alterations or modifications of
this Lease shall be valid unless written upon or attached to the
fully executed copies of this Lease and further executed by both
the Landlord and the Tenant herein.
23. Binding. This Lease shall be binding upon the parties
and upon their heirs, successors and assigns. This Lease shall be
construed under the laws of the State of Arkansas.
IN WITNESS WHEREOF, the parties have caused this Lease to be
executed the day and year first above mentioned.
ATTEST:
beereau>vr.r
LANDLORD:
CITY OF FA TTEVILLE,
BY:
SAS
TITLE:
-6-
COPY
• •
ATTEST:
T-'
.241
TENANT:
FOURTEN SOUTH BROADWAY CORPORATION
BY:
TITLE: /CB" /(1 /44-71./
ACKNOWLEDGMENT
STATE OF ARKANSAS
COUNTY OF IkJA EINOIDIS ss.
On this day before me, a Notary Public, duly commissioned,
qualified and actipg with n_p91 for said county and state, appeared
the within named W ILi IAM V11 1211 and , being the
ryc}0(1 and (`(jy 01F121( , respectively, of CITY OF
FAYETTEVILLE, ARKANSAS, and who had been designated to execute the
above instrument, to me personally well known, who stated they were
duly authorized in their respective capacities to execute the
foregoing instrument and further stated and acknowledged that they
had so signed, executed, and delivered said foregoing instrument
for the consideration, uses and purposes therein mentioned and set
forth.
Nn7ESTIMONY WHER OF, I have hereunto set my hand and seal
this day of 00704 , 1990.
aL^-
NOTARY PUBLIC
My commission expires:
A pnt L_ 110 ( fl%
bezdaktrus.la
-7-
•
1 •
CoPY•
ACKNOWLEDGMENT
STATE OF k€- > )
Ar/1741 10,Et - ) ss .
COUNTY OF )
•
On this day before me, a Notary Public, duly commissioned,
qualified and actin within a d for said county a d state, appeared
the witt} in named 4 ,'C. and t,jc*2g a 2sen6 , being tem-
, respee`L.ul , of FOURTEN
SOUTH BROADWAY CORPORATION, and who had been designated to execute
the above instrument, to me personally well known, who stated they
were duly authorized intheir respective capacities to execute the
foregoing instrument for and in the name and behalf of said
corporation, and further stated and acknowledged that they had so
signed, executed, and delivered said foregoing instrument for the
consideration, uses and purposes therein mentioned and set forth.
I TESTIMONY WHER OFAI have hereunto set my hand and seal
this /5 day of otnee�C , 199
My commission expires:
aee.ty)wa..e
NOT PUBLIC
-8-
SUSAN
lkonlevollst
Owenl in» en
Ewan May 22,1144a
STAFF REVIEW FORM - FINANCIAL OBLIGATIO"
X AGENDA REQUEST
CONTRACT REVIEW
GRANT REVIEW
For the Fayetteville City Council Meeting of:
August 17, 2004
FROM:
Sharon Crosson
Name
Parking Management
Division
Operations
Department
Approval of Contract Amendment with the Radisson Hotel to extend existing parking lease
contract for one (1) year.
COST TO CITY:
($85,440.00)
Cost of this request
2130-0913-4426-09
Account Number
Project Number
85,440.00
Category/Project Budget
Funds Used to Date
Revenue - Rent Lot 9 Deck
Program Category / Project Name
Parking Management
Program / Project Category Name
85,440.00 Off -Street Parking
Remaining Balance
Fund Name
BUDGET IEW:
X Budgeted Item
Budget -pager
a/
Date
Budget Adjustment Attached
CONTRACT/GRANT/LEASE REVIEW:
/em.4.o L ?2 . �,a t io [ /
A counting Man ger 0
City Att ney
//a9/
Date
7/re
Da e
cc u i c e, -i/30% 4
Purchasing Manager
Date
I8°kg
Date
$TAF OMMENDATI
;-.os crri -7- 26-c
Division Head Date
Department Director
Finance & Internal Services Dir.
ila
ini
ealAd
Chie
t'
ive Of icer
,7
Z -o/
Date
Date
Date �
ate
Received in Mayor's Office
Cross Reference:
Previous Ord/Res#:
Orig. Contract Date:
Orig. Contract Number:
New Item.
0
Date
Yes
No
FAYETTEVILLE
THE CITY OF FAYETTEVILLE, ARKANSAS
City Clerk Division
DEPARTMENTAL CORRESPONDENCE
•
113 West Mountain
Fayetteville, AR 72701
Telephone: (479) 575-8323
To: Sharon Crosson
Parking Management Division
From: Clarice Buffalohead-PearmankiR
City Clerk Division
Date: August 20, 2004
Re: Resolution No. 123-04
The City Council passed a resolution, August 17, 2004, approving a parking garage lease agreement with
the Radisson Hotel. 1 have attached a copy of the resolution along with a copy of the signed agreement.
The resolution with attachments will be recorded in the city clerk's office and microfilmed. If anything
else is needed please let the clerk's office know.
/cbp
attachments
cc: Nancy Smith, Internal Auditor