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Home My WebLink About198-04 RESOLUTION• t RESOLUTION NO. 198-04 A RESOLUTION TO END THE CURRENT LEASE OF CITY PROPERTY TO SAGE HOUSE AND APPROVE A REPLACEMENT LEASE OF CITY PROPERTY TO SAGE HOUSE WHEREAS, on April 2, 2002, Sage House and the City of Fayetteville entered into a long term lease of city property on Huntsville Road so that Sage House would construct rent -subsidized transitional housing to serve citizens of Fayetteville; and WHEREAS, Sage House and Seven Hills Homeless Center, Inc. have cooperated with City staff to utilize a slightly larger tract of city property to accommodate building sites for both nonprofit transitional housing service providers for Fayetteville residents; and WHEREAS, Sage House has agreed to terminate its current lease in exchange for the new lease attached hereto as Exhibit A. 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 accepts Sage House's agreement to terminate its April 2, 2002 lease of city property and agrees to a replacement long term lease of city property (attached as Exhibit A) near Huntsville Road so it can construct transitional housing to serve Fayetteville residents. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby authorizes Mayor Coody to sign the lease to Sage House attached as Exhibit A. PASSED and APPROVED this 7°' day of December, 2004. ATTEST: By: s j oi, i,uc.a M.usL SONDRA SMITH, ity Clerk By: APPROVED: DAN COODY, Mayor • • LEASE AGREEMENT This Agreement, made and entered into this i4 4 day of December, 2004, 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, Sagc House will provide such service to Fayetteville citizens within the City of Fayetteville. NOW, THEREFORE, the City of Fayetteville and Sage House agree as follows: 1. Leased Premises. For and in consideration of Sage House's promise to promptly provide transitional housing for needy Fayetteville citizens, the release and mutually agreed termination of the lease dated April 2, 2002 between the parties 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. (Attached as Exhibit A is the legal description and map.) 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 December 1, 2004, and shall extend for a term of Ninety -Nine (99) years, ending at midnight on November 30, 2103. 3. Consideration. The primary consideration for the City is Sage House's agreement in paragraph 4 to serve Fayetteville citizens by promptly providing its transitional housing project for needy Fayetteville citizens. "Promptly providing its transitional housing project" means that Sage House shall have such housing available no later than December 1, 2009, unless an extension is agreed to by City Council Resolution before that date. 4. Use. Sage (louse agrees to use the lease premises for the purpose of constructing, operating and maintaining a 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 Ilouse 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 I louse 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. Sage House and Sage House shall cooperate and jointly equip, use and maintain the playground located between their leased premises. 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. 2 • • 14. Entire Agreement. This lease agreement contains the entire agreement of both parties hereto, and no othcr oral or written agreement shall be binding on the parties hereto IN WITNESS WHEREOF, the parties hereto have hereunto set their hand and seals on this the 14h day of December, 2004. "RyJTR.. "'.,, CITY OF FAYETTEVILLE, Lessor U • • ; NAME OF FILE: CROSS REFERENCE: Item # Date • Resolution No. 198-04 w/Agreement Document • 1 12/07/04 Alderman Agenda Request Form 2 draft resolution 3 draft agreement 4 map of area 5 memo to Brenda Thiel 6 7 8 9 10 11 12 13 14 15 16 NOTES: ly klscLA ALD RMAN AGENDA REQUEST•ORM SO1�e S� Repto.cemenk Least FOR: COUNCIL MEETING OF DECEMBER 7, 2004 /y/7 /a4/sitenst FROM: ALDERMAN BRENDA THIEL ORDINANCE OR RESOLUTION TITLE AND SUBJECT: A Resolution To End The Current Lease Of City Property To Sage House And Approve A Replacement Lease Of City Property To Sage House APPROVED FOR AGENDA: �.&A / Bren thiel, Al erman 402_6_ ate City Atto ey (as to form) Date • • RESOLUTION NO. A RESOLUTION TO END THE CURRENT LEASE OF CITY PROPERTY TO SAGE HOUSE AND APPROVE A REPLACEMENT LEASE OF CITY PROPERTY TO SAGE HOUSE WHEREAS, on April 2, 2002, Sage House and the City of Fayetteville entered into a long term lease of city property on Huntsville Road so that Sage House would construct rent -subsidized transitional housing to serve citizens of Fayetteville; and WHEREAS, Sage House and Seven Hills Homeless Center, Inc. have cooperated with City staff to utilize a slightly larger tract of city property to accommodate building sites for both nonprofit transitional housing service providers for Fayetteville residents; and WHEREAS, Sage House has agreed to terminate its current lease in exchange for the new lease attached hereto as Exhibit A. 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 accepts Sage House's agreement to terminate its April 2, 2002 lease of city property and agrees to a replacement long term lease of city property (attached as Exhibit A) near Huntsville Road so it can construct transitional housing to serve Fayetteville residents. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby authorizes Mayor Coody to sign the lease to Sage House attached as Exhibit A. PASSED and APPROVED this 7'h day of December, 2004. ATTEST: By: SONDRA SMITH, City Clerk APPROVED: DRAFT By: DAN COODY, Mayor • • LEASE AGREEMENT This Agreement, made and entered into this day of December, 2004, 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 City of Fayetteville and Sage House agree as follows: 1. Leased Premises. For and in consideration of Sage House's promise to promptly provide transitional housing for needy Fayetteville citizens, the release and mutually agreed termination of the lease dated April 2, 2002 between the parties 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. (Attached as Exhibit A is the legal description and map.) 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 December 1, 2004, and shall extend for a term of Ninety -Nine (99) years, ending at midnight on November 30, 2103. 3. Consideration. The primary consideration for the City is Sage House's agreement in paragraph 4 to serve Fayetteville citizens by promptly providing its transitional housing project for needy Fayetteville citizens. "Promptly providing its transitional housing project" means that Sage House shall have such housing available no later than December 1, 2009, unless an extension is agreed to by City Council Resolution before that date. 4. Use. Sage House agrees to use the lease premises for the purpose of constructing, operating and maintaining a 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 arc 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, 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. Sage House and Sage House shall cooperate and jointly equip, use and maintain the playground located between their leased premises. 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. 2 • • 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 IN WITNESS WHEREOF, the parties hereto have hereunto set their hand and seals on this the day of December, 2004. ATTEST: By: Sondra Smith, City Clerk ATTEST: By: Title: CITY OF FAYETTEVILLE, Lessor By: DAN COODY, Mayor SAGE HOUSE, Lessee By: Name, Title 3 SAGE House Lease Property escnption: A part of the Northeast Quarter (NE%) of the Northeast Quarter (NE%) 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' 36" East 764.25 feet from the Northwest corner of the NE% of the NE% of said Section 22, said point being on the West 40 acre tract line; thence South 87° 50' 21" East 239.38 feet, thence South 02° 47' 36" West 400.00 feet; thence North 87°50' 21" West 239.38 feet to the West line of said 40 acre tract; thence along said west line North 02° 47' 36" West 400.00 feet to the Point of Beginning, containing 2.20 acres, more or less, being subject to rights of way and easements of record. • SWevie ARKANSAS • City Clerk Division 113 West Mountain Fayetteville, AR 72701 Telephone: (479) 575-8323 Fax: (479) 718-7695 city_clerk@cilayetteville.ar.us DEPARTMENTAL CORRESPONDENCE To: Brenda Thiel Alderman From: Clarice Buffalohead-Pearman 1* City Clerk Division Date: December 13, 2004 Re: Res. No. 198-04 The City Council passed the above resolution, December 7, 2004, authorizing the replacement lease with Sage House. I have attached a copy of the resolution recognizing that decision along with a copy of the contract. The resolution will be recorded in the city clerk's office and microfilmed. if anything else is needed please let the clerk's office know. Thanks. /cbp attachments cc Internal Auditor