HomeMy WebLinkAbout112-06 RESOLUTIONRESOLUTION NO. 112-06
A RESOLUTION APPROVING A LEASE AGREEMENT WITH
RADISSON HOTEL FAYE I I FVILLE FOR THE USE OF 178
PARKING SPACES ON LEVELS ONE & THREE OF THE
MEADOW STREET MUNICIPAL PARKING GARAGE
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 a Lease Agreement with Radisson Hotel Fayetteville for the use
of 178 parking spaces on Levels One & Three of the Meadow Street Municipal
Parking Garage. A copy of the Lease Agreement marked Exhibit "A" is attached
hereto, and made a part hereof. 00"RK/TR.��''''
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PASSED and APPROVED this 20th day of June, 2006.
By:
DA COODY, Mayor
ATTEST:
By:
SONDRA SMITH, City Clerk
AGREEMENT
This Agreement, made and entered into this. 041 day of ill tales , 2006, by and
between the City of Fayetteville, Arkansas, a Municipal Corporation, 113 W. Mountain St.,
Fayetteville, Arkansas, and the Radisson Hotel Fayetteville, 70 North East Avenue, Fayetteville,
Arkansas.
WITNESSETH:
The City of Fayetteville, 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 Radisson Hotel
Fayetteville, and the Radisson Hotel Fayetteville does hereby lease from the City of Fayetteville, that
parcel of land situated in the County of Washington and State of Arkansas, and more particularly
described as:
One hundred and seventy-eight 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. The term of this Lease shall be for a period of one (1) year, with an
automatic annual renewal for up to four (4) additional years, commencing on the date of
execution hereof.
2. Right of First Refusal. If at any time during the term of this Lease the City of Fayetteville
receives an acceptable bona fide offer to purchase the Leased Premises, or any part thereof,
the City of Fayetteville shall submit a written copy of such offer to Radisson Hotel
Fayetteville giving Radisson Hotel Fayetteville thirty (30) days within which to elect to meet
such offer.
3. Parking Spaces. This Lease shall be for the entire first level of the Leased Premises
consisting of eighty-nine (89) parking spaces, and the entire third level of the Leased
Premises consisting of eighty-nine (89) parking spaces, for a total of one hundred seventy-
eight (178) spaces.
4. Rent. The Radisson Hotel Fayetteville shall pay to the City of Fayetteville as rent for the
Leased Premises the following:
a. The sum of forty-five dollars ($45.00) per month per parking space rented on the first
level of the Leased Premises.
b. The sum of thirty dollars ($30.00) per month per parking space rented on the third
level of the Leased Premises.
c. The monthly rental shall be payable in consecutive monthly installments payable in
advance on or before the first day of every calendar month.
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5. Use. The Radisson Hotel Fayetteville and their subtenant or occupants shall have the right to
use the Leased Premises for parking only; any other use of the Leased Premises must be pre -
approved by the City of Fayetteville which shall meet all present and future building codes,
zoning and other laws.
6. Repairs. The City of Fayetteville 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 City of Fayetteville excepted. The
Radisson Hotel Fayetteville 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% or the value of
the improvements of the premises herein leased or the building which forms the principal
component part of the Leased Premises, then Lessor shall as soonas reasonably practical
repair the damage cased 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 forms the principal component part of the Leased Premises, the 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 City of Fayetteville makes the decision not to repair the Leased Premises
such a decision must be submitted in writing to the Radisson Hotel Fayetteville. Upon
receipt of the notice from City of Fayetteville the Radisson Hotel Fayetteville has thirty (30)
days to elect either, or both, of the following options:
a. To purchase the entire Leased Premises from City of Fayetteville at its then fair
market value and/or,
b. To repair the Leased Premises at Radisson Hotel Fayetteville's sole and exclusive
expense with all terms of the Lease Agreement, except for abatement of rent provided
for herein, continuing in effect.
8. Lighting and Painting. City of Fayetteville 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 Equipment. City of Fayetteville shall, during the term of this Lease and any renewal
or extension thereof, at its sole expense, provide revenue control and access equipment for
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the Leased Premises. This equipment shall include parking gates, parking card readers, and
automatic revenue control machines located at the entrances of both levels of the parking
deck.
10. Parking Management Services. The City of Fayetteville shall provide services to manage the
municipal parking deck located east of the Radisson Hotel Fayetteville. This service shall
include the following:
a. Provide parking revenues and access control equipment for both levels of Leased
Premises.
b. Program parking cards and distributing them to the Radisson Hotel Fayetteville;
activate and deactivate parking cards as requested by the Radisson Hotel Fayetteville.
c. Provide routine maintenance on gates, card readers, revenue control machines, etc.
Expenses incurred for maintenance on equipment shall be borne by the City of
Fayetteville.
d. Provide a minimum of four (4) hours of cleaning services per week; cleaning services
include sweeping; blowing; vacuuming; spot washing of soft drinks, mud, or other
spills; and the emptying of trash containers into the dumpster.
e. Retrieve revenues from revenue control machines no less than twice per month.
f. Frequently service the revenue control machines to ensure quarter hoppers have
sufficient coins to make change to customers. City staff will take sufficient amount
of money from the revenues collected in order to purchase enough quarters and dollar
coins to keep revenue machines fully operational. One hundred percent (100%) of
the revenues collected, less monies used to replenish quarter and dollar coin hoppers,
will be deposited into the City's account; a check will be issued to the Radisson Hotel
for one hundred percent (100%) of the total revenues, less monies used to replenish
quarter and dollar coin hoppers. This revenue shall be reimbursed to the Radisson
Hotel within forty (45) days of receipt of monies collected.
g. Provide accounting of all revenues received through the revenue control machines on
a monthly basis; provide audit statements of revenues collected to the Radisson Hotel
Fayetteville on a monthly basis.
h. All expenses incurred for the purchase of equipment and supplies for the operations
of the deck shall be borne by the City of Fayetteville. All purchases shall be initiated
by the City of Fayetteville.
i. The City agrees to allocate parking cards only to the Radisson Hotel Fayetteville and
employees of the Parking Management Division for purposes of executing parking
services.
j. The Radisson Hotel Fayetteville may reallocate parking cards to a second party as
they deem necessary; however, the Radisson Hotel Fayetteville may not resell
parking spaces for a greater amount than that paid by the Radisson Hotel Fayetteville
to the City of Fayetteville as set forth in this contract.
11. Tenant Responsibilities. The Radisson Hotel Fayetteville shall provide the following:
a. Reimburse the City of Fayetteville for cost of all parking cards provided for access
into the Leased Premises. The City of Fayetteville shall bill the Radisson Hotel for
all parking cards issued to the Radisson Hotel Fayetteville at the actual cost of the
cards plus applicable sales tax. The Radisson Hotel Fayetteville shall submit
payment within thirty (30) days of invoice date to the City of Fayetteville.
b. Provide advance notification and post signage at the Leased Premises at least twenty-
four (24) hours in advance prior to any parking area closure on Leased Premises.
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c. Provide advance notification at least twenty-four (24) hours in advance to the City of
Fayetteville when gates are going to be manually raised by the Radisson Hotel
Fayetteville for special events or any other reason.
12. Insurance. Radisson Hotel Fayetteville shall be solely responsible for insuring its interests in
the Leased Premises and improvements for its protection.
13. Taxes. The City of Fayetteville shall pay all real estate taxes and special assessments, if any,
during the term of the Lease.
14. Utilities/Janitorial. The City of Fayetteville shall pay for all utility service and janitorial
service in the Leased Premises.
15. Nuisance. The Radisson Hotel Fayetteville covenants and agrees that the Radisson Hotel
Fayetteville 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, Radisson Hotel Fayetteville 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 Radisson Hotel Fayetteville further agrees that
Radisson Hotel Fayetteville 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.
16. Holding Over. An occupancy by the Radisson Hotel Fayetteville of the Leased Premises
beyond the expiration of this Lease as herein provided shall be a tenancy from month to
month.
17. 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 City of Fayetteville or to the
Radisson Hotel Fayetteville, 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
18. Legal Representatives, Successors and Assigns. It is further covenanted and agreed by and
between the City of Fayetteville and the Radisson Hotel Fayetteville, 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 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 City of Fayetteville or the
Radisson Hotel Fayetteville hereto, it shall be held to include and apply to (wherever and
whenever applicable) the heirs, executors, successors, personal or legal representatives and
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assigns of the City of Fayetteville or the Radisson Hotel Fayetteville, the same as if in each
and every case so expressed.
19. 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 Radisson Hotel Fayetteville cannot reasonably
operate in the remainder in substantially the same manner as before.
20. Right Upon Default. Whenever the Radisson Hotel Fayetteville 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 City of Fayetteville gives the Radisson Hotel Fayetteville
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 Radisson Hotel Fayetteville in this Lease and fail
to commence (subject to unavoidable delay) to take steps to remedy same within
twenty (20) days after the City of Fayetteville gives the Radisson Hotel Fayetteville
written notice specifying same; then the City of Fayetteville may terminate this Lease
upon ten (10) days written notice of their 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 Radisson Hotel Fayetteville proceeds ,to cure same or takes remedies to
cure same; or
ii. The Radisson Hotel Fayetteville contests the amount claimed to be due or any
other item for which an amount could be estimated (definite or estimated),
and the Radisson Hotel Fayetteville deposits the contested amount in an
escrow account with instructions to the escrow agent to disburse the amount
in accordance with the written agreement of the Radisson Hotel Fayetteville
and the City of Fayetteville or in accordance with the order of a court
exercising jurisdiction over the controversy.
21. Assignability. Radisson Hotel Fayetteville shall not, without the written consent of City of
Fayetteville, assign this Lease, or any rights thereunder, or sublet any part of the Leased
Premises, provided however, Radisson Hotel Fayetteville 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 Radisson
Hotel Fayetteville the Radisson Hotel Fayetteville is released and discharged from any
further obligations or liabilities it has hereunder and any assignee of the Radisson Hotel
Fayetteville shall have all rights belonging to the Radisson Hotel Fayetteville under this
Lease.
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22. Entire Agreement. All previous negotiations and understandings between the City of
Fayetteville and the Radisson Hotel Fayetteville, 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.
23. 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 City of Fayetteville and the Radisson Hotel Fayetteville herein.
24. 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 City of Fayetteville and the Radisson Hotel Fayetteville have
executed this Agreement on or as of the date first written above.
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SONDRA SMITH, City Clerk
CITY 04 FAYETTEVILLE
DAN COODY, Mayor
RADISSON HOTEL FAYETTEVILLE
By:
By:
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(Title)
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Sharon Jenkins
Submitted By
City of Fayetteville
Staff Review Form
City Council Agenda Items
or
• Contracts
6/20/2006
City Council Meeting Date
Parking Management
Division
Action Required:
465
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Operations
Department
Approval of resolution to approve Lease Agreement with the Radisson Hotel Fayetteville for the lease of 178 parking
spaces in the municipal parking garage, levels one and three, located on Meadow Street in Fayetteville.
(80,100.00)
Cost of this request
2130-0913-4426-09
Account Number
Project Number
Budgeted Item
X
(80,100.00)
Category / Project Budget
Funds Used to Date
$ (80,100.00)
Remaining Balance
Budget Adjustment Attached
Revenue - Rent Lot 9 Deck
Program Category / Project Name
Parking Management
Program / Project Category Name
Off -Street Parking
Fund Name
Departmen Dire or
30' O,6
Date
CNA. ,C4(70
City Attorney( Da
Financ• and Internal Service Director
Mayor
Comments:
Date
6 6)4'6
Date
Previous Ordinance or Resolution #
Original Contract Date:
Original Contract Number:
Received in City Clerk's Office
oftz
Received in Mayor's Office
Parking Lease Agreement with Radisson Hotel
June 20, 2006 Council Meeting
CITY COUNCIL AGENDA MEMO
TO: Mayor Dan Coody
THRU: Gary Dumas, Director of Operations
FROM: Sharon Jenkins, Parking & Telecommunications Manager
DATE: May 26, 2006
SUBJECT: Parking Lease Agreement with Radisson Hotel Fayetteville
RECOMMENDATION
Staff recommends approving a Parking Lease Agreement with the Radisson Hotel
Fayetteville for a term of one (1) year, with an automatic annual renewal for up to four
(4) additional years. The lease is for the use of 178 parking spaces in the municipal
parking garage, levels 1 and 3, located on Meadow Street in Fayetteville
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 ended on September 30, 2004. City
Council extended this contract allow time for the city to finish deck rehabilitation and the
installation of new parking equipment.
DISCUSSION
Now that these improvements have been completed, we have drawn up a new Lease
Agreement that is basically identical to the original Agreement, with the addition of city
staff retaining service and control of the equipment and revenue control machines. The
Radisson Hotel Fayetteville will lease the entire first level and third level of the parking
garage and retain all parking revenues collected. The City of Fayetteville will maintain
and service all parking equipment. This is the same arrangement that the City currently
has with the Fayetteville Town Center.
BUDGET IMPACT
The Radisson Hotel currently pays $80,100.00 annually to the City for the lease of the
parking garage. The first level rents for $45.00 per space per month and the third level
rents for $30.00 per space per month This revenue would remain the same under this
new Lease Agreement. The hotel pays the same rate per parking space as an individual
pays for a comparable space.
RESOLUTION NO.
A RESOLUTION APPROVING A LEASE AGREEMENT WITH
RADISSON HOTEL FAYETTEVILLE FOR THE USE OF 178
PARKING SPACES ON LEVELS ONE & THREE OF THE
MEADOW STREET MUNICIPAL PARKING GARAGE
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 a Lease Agr ement with Radisson Hotel Fayetteville for the use
of 178 parking spaces on Levels One & Three of the Meadow Street Murrifral
Parking Garage. A copy of the Lease Agreement marked Exhibit "Winttacligd
hereto, and made a part hereof.
PASSED and APPROVED this 20th day of June, 20
A1,Cb:ODY, Mayor
H; City Clerk
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Clarice Pearman - Res. 112-06 Page 1
From: Clarice Pearman
To: Crosson, Sharon
Date: 6.28.06 4:14PM
Subject: Res. 112-06
Sharon,
Attached is a copy of the above resolution passed by City Council, June 20, 2006. If anything else is need
please let me know.
Thanks.
Clarice