HomeMy WebLinkAbout187-06 RESOLUTION•
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RESOLUTION NO. 1.87-06
A RESOLUTION TO APPROVE A TWO YEAR LEASE
WITH OPTION TO RENEW WITH GCM, LLC FOR
ABOUT 3,200 SQUARE FEET WITHIN THE GCM
BUILDING FOR $45,250.00 THE FIRST YEAR AND TO
INCREASE BY THE CPI THE SECOND 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
approves the lease attached as Exhibit A with GCM, LLC for about 3,200 square feet
within the GCM Building for a period of two years at a first year's cost of $45,250.00
and a second year's rent increase by the annual CPI for 2007, and authorizes Mgygtrm
Coody to sign this lease. <RK/TR4'%,
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PASSED and APPROVED this 7th day of November, 2006 ET:
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APPROVE: ':9sy RkAiiNS,"„K ;'
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By: 07/1.et.1/4J kiCiii
SONDRA SMITH, City Clerk
ATTEST:
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GCM PROPERTIES, LTD, LLC.
101 WEST MOUNTAIN STREET
P.O. BOX 4704
FAYETTEVILLE, AR 72702
LEASE AGREEMENT
This LEASE AGREEMENT is made and entered into on this 71) day of
A)t,oJ'n Lzr, . 2006, by and between GCM PROPERTIES, LTD, LLC, designated
herein as LESSOR, and CITY OF FAYETTEVILLE, ATTN: DAN COODY, designated
herein as CITY OF FAYEI fEVILLE:
WITNESSETH:
1. PREMISES:
The Lessor hereby leases and demises to the City of Fayetteville and the City of
Fayetteville hereby leases from the Lessor premises in the building commonly known as
the GCM BUILDING, the premises being the indicated area of the second floor of the
building as shown on the attached floor plan and consisting of approximately 3,200
square feet of area. See Exhibit "A".
2. TERM:
The City of Fayetteville is to have and to hold the above described premises for a term of
TWO (2)years beginning on the 1St day of January, 2006. The City of Fayetteville. is
` hereby granted the option to extend this lease, upon the same terms and conditions, for
four (4) successive six (6) month terms. The option shall be exercised in writing by the
City of Fayetteville not later than Ninety (90) days pnor to the expiration of the then
current term.
3. RENT:
The City of Fayetteville and the LESSOR agree to accept as rent for the original two year
term the sum of $45,250.00 annually, payable in equal monthly installments of $3770.83
due the first day of each month throughout the duration of the term In the event the City
of Fayetteville exercises its right to extend the lease as described in paragraph 2, the
annual rental amount will be calculated by adding to the annual rental amount of the
original term the consumer price index (CPI) as set during the second year of the original
term. Payments will be made in accordance to payment terms established in the original
term with payments being made in equal installments and due on the first of each month
of the term.
4. SERVICES TO BE FURNISHED BY LESSOR:
(a) Water and sewer service.
(b) Heating and Air Conditioning, when necessary, for normal comfort in
premises.
(c) Electrical current for standard building lighting fixtures and electrical outlets
for office equipment for ordinary purposes in general office use.
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LESSOR does not warrant that any service will be free from interruptions caused by
repairs, renewals, improvements, changes of service, alterations, civil commotion, riot,
accidents, inability to obtain electrical power, fuel, water supplies or labor or other cause
beyond the reasonable control of the LESSOR. No such interruption of service shall be
deemed an eviction or disturbance of the City of Fayetteville's use and possession of the
premises or any part thereof, or render the LESSOR liable to the City of Fayetteville for
damages, any abatement of rent, or relieve the City of Fayetteville for performance of the
City of Fayetteville's obligations under this lease.
5. RIGHTS RESERVED TO LESSOR:
Lessor shall have the following rights exercisable without notice:
(a) To name the building and change the name or street address of the
building.
(b) To install and maintain signs on the exterior and interior of the building,
excluding the premises leased to the City of Fayetteville
(c) To have and retain a paramount title to Premises free and clear of any act
of the City of Fayetteville.
6. PROPER USE OF PREMISES:
The City of Fayetteville agrees that the premises shall be used only for City of
Fayetteville offices and related business activities and for no other use without written
consent of the Lessor.
7. FIXTURES:
Any fixtures or other property of the City of Fayetteville which may be either placed to or
upon or affixed or attached to the premises hereby demised by the City of Fayetteville are
to remain the property of the City of Fayetteville and the City of Fayetteville is to have
the right to remove the same at any time prior to or upon vacating the said premises,
provided that the City of Fayetteville shall repair any damages resulting from such
removal
8. LESSOR'S DUTY TO REPAIR:
Lessor agrees to maintain the structural integrity of the GCM building, including the
premises leased to the City of Fayetteville, including without limitations, the building
walls, roof and the glass portion of said building, except such of the above as may be due
to the accidental, negligent, or intentional act of the City of Fayetteville or its employees,
agents, or privies.
9. CITY OF FAYETTEVILLE'S DUTY TO REPAIR -
The City of Fayetteville shall keep and maintain the premises leased in a state of good
repair and tenable condition at the City of Fayetteville's expense. The City of
Fayetteville shall at its cost and expense, repair and replace any part thereof, caused by
the City of Fayetteville, or its agents, employees, invitee's or visitors.
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10. ACCEPTANCE OF PREMISES:
The City of Fayetteville is familiar with the premises, acknowledges and receives the
premises in their present state of repair and condition.
11. MODIFICATION TO PREMISES:
The Lessor acknowledges and approves the improvements and modifications to be
undertaken by the City of Fayetteville at the City of Fayetteville's expense to the
premises leased as described in the attached Exhibit B.
12. DESTRUCTION BY FIRE OR OTHER CASUALTY.
If the leased premises shall be damaged by fire or other peril specified in the extended
coverage insurance endorsement, so as to be substantially destroyed, or the use of the
leased premises shall be prohibited by such destruction or peril to the building known as
GCM, then this lease shall cease at the option of either the Lessor or the City of
Fayetteville by one giving to the other written notice of cancellation within 30 days after
such destruction. Any unearned rent paid in advance by the City of Fayetteville shall be
apportioned as of the date of the destruction and be refunded to the City of Fayetteville
13. RESTRICTION UPON ASSIGNMENT OR SUBLETTING:
The City of Fayetteville agrees not to assign or in any manner transfer this lease or any
estate or interest herein without prior written consent of the Lessor; however, the City of
Fayetteville may assign or transfer this lease to any affiliate or subsidiary of the City of
Fayetteville without the Lessor's consent.
14. NOTICE:
Whenever under this lease, a provision is made for notice of any kind, it shall be deemed
sufficient notice, if such notice to the City of Fayetteville is in writing and addressed to
the Mayor s Office, 113 West Mountain, Fayetteville, Arkansas 72701. The notice shall
be deposited in the U.S. Mail with postage prepaid. Notice to the Lessor shall be in
writing, addressed to the last known post office address of the GCM Properties, LTD
LLC and deposited in the U.S. Mail with postage prepaid.
15. SURRENDER:
At the expiration of the term or extended term hereof, the City of Fayetteville will quit
and surrender the demised premises, in as good state and excepting improvements in
Attachment C, in the condition as received. The City of Fayetteville will not be liable to
the Lessor for reasonable wear and tear, damage from fire or the elements or from causes
beyond the City of Fayetteville's control.
16 RIGHTS OF SUCCESSORS:
Each and every provision of this lease agreement shall bind and shall inure to the benefit
of the parties hereto, their legal representatives, heirs, successors and assigns.
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IN WITNESS WHEREOF, the parties have hereunto set their hands and seals on the date
first hereinabove written.
Date:
DAN COODY,
aliA"O°m, MAYOR, CITY OF FA i� VILLE
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EDIT B
Renovations and improvements to be undertaken by the City of Fayetteville at the City's
expense to the leased premises located m the GCM Building.
1. Replacement of wall to wall carpeting throughout the leased premises.
2. Painting of interior walls throughout the leased prenuses.
3. Installation of bullet resistant doors, windows, and wallboard at the intenor
North and West entrances to leased premises.
4. Installation of City of Fayetteville network data wiring throughout the leased
premises.
5. Installation of multi-lme phone system throughout the leased premises.
6. Construction of wall, as located and marked on Exhibit A by the letter (W).
7. Installation of doorway between separate business suites that compnse the
leased premises, as located and marked on Exhibit A by the letter (D).
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Coy Hurd
Submitted By
City of Fayetteville
Staff Review Form
City Council Agenda Items
or
Contracts
11/7/2006
City Council Meeting Date
Building Services
Division
Action Required:
Operations
Department
The action required is for the City Council to approve the attached lease for 3,200 square feet of space for a period
of 2.5 years in the GCM Building at 101 West Mountain Street. The City Prosecutor's Office requires more space
than is available in their present building.
$114,825
Cost of this request
1010 6600 5309 00
Account Number
N/A
Project Number
Budgeted Item
$45,250
Category / Project Budget
Miscellanous Program
Program Category / Project Name
Lease Expense
Funds Used to Date Program / Project Category Name
45,250.00 General Fund
Remaining Balance Fund Name
Budget Adjustment Attached
i0E2o-ob
Date
Department Dir
City A .rney
cj a_ LL
Finance and Intern- Service Director
(6-"Zv-vC,
Date
to- Z3 of
Date
ayor
Ddte
Previous Ordinance or Resolution #
Original Contract Date:
Original Contract Number:
Received in City Clerk's Office
Comments:
RESOLUTION NO...,
A RESOLUTION TO APPROVE A THIRTY MONTH LEASE
WITH GCM, LLC FOR ABOUT 3,200 SQUARE FEET WITHIN
THE GCM BUILDING FOR $45,250.00 THE FIRST YEAR AND
AN ESTIMATED TOTAL COST OF $114,825.00
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 attached as Exhibit A with GCM, LLC for about 3,200 square feet
within the GCM Building for a total period of 30 months at a total estimated cost of about
$114,825.00 and authorizes Mayor Coody to sign this lease.
PASSED and APPROVED this 7th day of November, 2006.,
ATTEST:
By:
SONDRA SMITH, City Clerk
APPROVED:
By:
DAN COODY, Mayor
FAYETTEVILLE
THE CITY OF FAYETTEVILLE, ARKANSAS
DEPARTMENTAL CORRESPONDENCE
MEMORANDUM
TO: Mayor Dan Coody and the Fayetteville City Council
THROUGH: Gary Dumas, Operations Director
FROM: Coy Hurd, Project Manager
DATE: October 20, 2006
SUBJECT: Lease of 3,200 square feet of space in the GMC Building.
Recommendation:
Staff recommends that the City Council approve the attached lease for 3,200
square feet of space in the GMC Building (101 West Mountain Street). This space will
be used as office space for the City Prosecutor. The Prosecutor needs more space than is
available in his present building.
Background:
For some time, the City Prosecutor has been in dire need of more office space to
enable the efficient execution of his mission In his present building, there is no more
space available. Preliminary plans are being formulated for the possibility of a new
facility which would house the Prosecutor's operation (among others). This possibility is
two to three years into the future in its best case. An interim solution has been researched.
One viable option is a move into the GMC Building.
Discussion:
The City Prosecutor will need around 3,200 square feet of space for its operation
during the next two and a half years. Such space is available in the GMC Building at 101
West Mountain Street. Advantages of this space are availability, and, adjacency to many
of the City Departments with which the Prosecutor must interact. The price of the lease
is within the present market for the area
memo of October 20, page two
Budgetary Impact:
Among the terms of the attached lease is the cost of $14.14 per square foot
per year. This amounts to $45,250 per year. There is an escalation clause for the
second year that is linked to the Consumer Price Index. With this in mind, the
likely cost of the lease for 2.5 years is $114,825.
Nawi-OJ
Ci eAudi%1 y f7/7/o
RESOLUTION NO.
A RESOLUTION TO APPROVE A TWO YEAR LEASE WITH
OPTION TO RENEW WITH GCM, LLC FOR ABOUT 3,200 SQUARE
FEET WITHIN THE GCM BUILDING FOR $45,250.00 THE FIRST
YEAR AND TO INCREASE BY THE CPI THE SECOND 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
approves the lease attached as Exhibit A with GCM, LLC for about 3,200 square feet
within the GCM Building for a period of two years at a first year's cost of $45,250.00
and a second year's rent increase by the annual CPI for 2007, and authorizes Mayor
Coody to sign this lease
PASSED and APPROVED this 7th day of November, 2006.
ATTEST.
By:
SONDRA SMITH, City Clerk
APPROVED:
By:
DAN COODY, Mayor
(11/13/2006) Amber Wood -Res. 187-06 .4' Page 1
From: Amber Wood
To: Hurd, Coy
Date: 11/13/2006 3:05 PM
Subject: Res. 187-06
Attachments: 187-06 GCM Building Lease.pdf
CC:
Coy,
Bell, Peggy; Deaton, Vicki; Pearman, Clarice
Attached is a copy of Res. 187-06 passed by the City Council on November 7, 2006. One of the two original agreements
has been forwarded to you through inter -departmental mail. If you have any questions please feel free to give me a call at
the number listed below. Have a great day!
Thanks,
Amber Wood
Deputy City Clerk
City of Fayetteville
City Clerk Division
Phone: (479) 575-8323
Fax: (479) 718-7695 •
awood@ci.fayetteville.ar.us