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HomeMy WebLinkAbout166-11 RESOLUTIONRESOLUTION NO. 166-11 A RESOLUTION TO APPROVE A SLIGHTLY AMENDED LEASE WITH FRIENDSHIP COMMUNITY CARE, INC. FOR 2.2 ACRES OF CITY PROPERTY REQUIRED BY THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WHEREAS, the Little Rock Field Office of the United States Department of Housing and Urban Development has demanded two minor changes (lease term to being on June 21, 2011 instead of July 1, 2011 and a nominal "consideration" of one dollar per year of rent be added to the real "consideration of Friendship Community Care, Inc.'s promise to provide housing services for developmentally disabled Fayetteville citizens") to be made in the existing Lease before it will approve a grant to Friendship Community Care, Inc. 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 an amendment to paragraph 1 of the Lease Agreement to add "one dollar per year and" and to amend paragraph 2. Term so that lease will commence on the date of its original approval by the City Council of June 21, 2011 instead of July 1, 2011. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves this amended lease and authorizes Mayor Jordan to execute this slightly amended Lease Agreement with Friendship Community Care, Inc. as attached. PASSED and APPROVED this 6th day of September, 2011. APPROVED: ATTEST: B By: 'df SON RA E. SMITH, City Clerk/Treasurer A 0���9�arnrra Y 0:e • Cj• •�J� s ; FAYETTEVILLE: eZ • cJ •fie` `51;*�KANSP•° �.`. Yolanda Fields Submitted By City of Fayetteville Staff Review Form City Council Agenda Items and Contracts, Leases or Agreements 9/6/2011 City Council Meeting Date Agenda Items Only Devlopment Services Division Action Required: Community Services Department Approval of lease amendment with Friendship Community Care INC. on 2.2 acres located on Huntsville Road (south of the current Seven Hills Transitional Housing Facility. Cost of this request Account Number Project Number Budgeted Item Category / Project Budget Program Category / Project Name Funds Used to Date Program / Project Category Name Remaining Balance Fund Name Budget Adjustment Attached 01.14:11•1\ Department Dir for /` Date 1-1( City City A ney Date To 9- 1-zo ►j Finance and Internal Services Director Date Chief of Sta Date Date Previous Ordinance or Resolution # Original Contract Date: Original Contract Number: 09-01-1 1 A10:44 RCVD Received in City Clerk's Office Comments: Staff Recommends approval of lease amendment Revised January 15, 2009 ave evile ARKANSAS www.accessfayettevi lle.org CITY COUNCIL AGENDA MEMO THE CITY OF FAYETTEVILLE, ARKANSAS DEPARTMENT CORRESPONDENCE To: Mayor and City Council Thru: Jeremy Pate, Director of Development Services il From: Yolanda Fields, CS Dire Date: August 31, 2011 Subject: Huntsville Property Lease PROPOSAL: Friendship Community Care, Inc. (FCC) is a private, non-profit organization serving individuals with developmental disabilities in ten counties of the Arkansas River Valley region and waiver services in the entire state. Developmental disabilities include intellectual disability, epilepsy, cerebral palsy and similar disorders. The purpose of the organization is to provide supports and services to individuals and families that will allow them to be independent and productive citizens. FCC began operations in 1972 by providing day care services to preschool and school age children. During that first year, two staff members served twelve children. From this beginning, the necessity for additional services has driven the growth of the organization. Today, Friendship serves over five hundred individuals in a fifteen - county area. This organization has been providing services to this area since the beginning of 2010. A Fayetteville office was opened at the beginning of 2011. The City of Fayetteville entered into a long term lease with FCC on June 21, 2011. FCC has submitted a grant application for funding to construct a housing facility for individuals with developmental disabilities on this property. The Department of Housing and Urban Development has requested amendments to the lease in order for the funding application to be considered for the project. The term date of the lease must begin on June 21, 2011 and a lease amount to be paid by FCC must noted. RECOMMENDATION: Staff recommends approval of lease amendment as outlined above. BUDGET IMPACT: None RESOLUTION NO. A RESOLUTION TO APPROVE A SLIGHTLY AMENDED LEASE WITH FRIENDSHIP COMMUNITY CARE, INC. FOR 2.2 ACRES OF CITY PROPERTY REQUIRED BY THE UNITED STATES DEPARMENT OF HOUSING AND URBAN DEVELOPMENT WHEREAS, the Little Rock Field Office of the United States Department of Housing and Urban Development has demanded two minor changes (lease term to being on June 21, 2011 instead of July 1, 2011 and a nominal "consideration" of one dollar per year of rent be added to the real "consideration of Friendship Community Care, Inc.'s promise to provide housing services for developmentally disabled Fayetteville citizens") to be made in the existing Lease before it will approve a grant to Friendship Community Care, Inc. 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 an amendment to paragraph 1 of the Lease Agreement to add "one dollar per year and" and to amend paragraph 2. Term so that lease will commence on the date of its original approval by the City Council of June 21, 2011 instead of July 1, 2011. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves this amended lease and authorizes Mayor Jordan to execute this slightly amended Lease Agreement with Friendship Community Care, Inc. as attached. PASSED and APPROVED this 6th day of September, 2011. APPROVED: ATTEST: By: By: LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer Certified Receipt #7009 0080 0000 0692 5150 Ms. Cindy Mahan CEO Friendship Community Care, Inc. P.O. Drawer 2109 Russellville, AR 72811 Dear Ms. Mahan: U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Little Rock Field Office, Region VI Little Rock Multifamily Program Center 425 west Capitol Avenue, 10t Floor Little Rock. AR 72201 Fax (501)324-5203 www.hudgav espanol.hud.gov AUG 2 ri 2a11 SUBJECT: Fiscal Year 2010 Section 811 Fund Reservation Section 811 Application for Capital Advance Project Name: Friendship 811 Project Number: 082-HD107/AR37Q101003 Project Location: Fayetteville, Arkansas GRANT 10908696 We have received your application for funding under the Supportive Housing Program, Section 811 Housing for the Elderly. During technical screening it was found to be incomplete and the following deficiencies must be addressed in order to continue the review: Exhibit 2(a) — Articles of Incorporation are incomplete; only page one was submitted. Please provide. They must be dated on or before the application submission date. Exhibit 8(f) —HUD -92041- Sponsor's Conflict of Interest Resolution was missing. Please provide. Exhibit 8(g) — HUD -92042 — Sponsor's Resolution for Commitment to Project was missing. Please provide. It must be dated on or before the application deadline date. Exhibit 4(d) — Site Control and Permissive Zoning was provided; however, the NOFA requires the lease to have commenced prior to the 811 application deadline. The lease has a commencement date of July 1, 2011, which falls after the application deadline. Also, the lease does not provide an amount for the annual ground rent. Exhibit 4 (d) (ii) — Freedom of site from restrictions was not provided. You were to provide a current title report or title policy from a title company, updated within 6 months of the application deadline date that evidences that the site is free of any limitations, restrictions, or reverters which could adversely affect the use of the site for the proposed project for the 40 -year capital advance period. The title search submitted only goes back to February 8, 2001, and does show whether the site is free of any limitations, restrictions, or 2 reverters. The search lists a warranty deed but it was not included. Finally, the NOFA specifies that the application must show that the public body possesses clear title subsequent to 2001. Please provide. In accordance with the General Section of the FY 2010 NOFA, Paragraph V B. 2, the responses to deficiency letters for electronically submitted applications can no longer be submitted by USPS mail, electronic mail, courier service or hand delivery to the local HUD office. Responses can ONLY be submitted electronically using the facsimile telephone number and form HUD -96011, Facsimile Cover Page, contained in the last application package submitted to HUD. Faxes are to be sent to the toll-free fax number 800-483-1010. If you cannot access the toll-free 800 number or experience problems, you may use 215-825-8798 (this is not a toll-free number). You must use the same Facsimile Cover Page, Form HUD -96011, contained in the last application package submitted to HUD because it contains the unique embedded ID number that is unique to your application. If your fax machine is set to automatically create a cover sheet, this feature must be turned off. For detailed guidance, please refer to the instructions in the General Section (pg. 45) regarding "Faxing Required Documentations". All information must be submitted within 14 calendar days of the date of receipt of the HUD deficiency letter. If the deadline falls on a Saturday, Sunday, or federal holiday, the applicant's correction must be received by HUD on the next day that is not a Saturday, Sunday, or federal holiday. If the deficiency is not corrected within the above time frame, HUD will reject the application as incomplete and it will not be considered for funding. Additionally, when submitting technical deficiency cure items, please place in the box labeled "Name of Document Transmitting" on form HUD 96011, the following information: Technical Cure plus the name of the document. If the name of the document is long and you need space to fit the document name, just label the Technical Cure as TC, plus the document name. This will alert the Grants Management Office to associate the fax with the specific grant application number. Thank you for your interest in the Section 811 program. If you have any questions, please contact Cloretta Brown, Project Manager, at (501) 918-5725. Sincerely, cc: Connie Morton da K. Hardway Director Little Rock Multifamily Program Center AMENDED LEASE AGREEMENT This Agreement made and entered into initially on June 21, 2011, and amended on the 4 & day of September, 2011, by and between the City of Fayetteville, Arkansas, Lessor, and Friendship Community Care, Inc., Lessee, Witnesseth: WHEREAS, Friendship Community Care, Inc. is a non-profit corporation established and dedicated to provide housing services for developmentally disabled citizens; and WHEREAS, providing housing services for developmentally disabled citizens is a valid public purpose; and WHEREAS, Friendship Community Care, Inc. will provide such services to Fayetteville citizens within the City of Fayetteville. NOW, THEREFORE, the City of Fayetteville and Friendship Community Care, Inc. agree as follows: 1. Leased Premises. For and in consideration of one dollar per year and Friendship Community Care, Inc.'s promise to promptly provide housing services for developmentally disabled Fayetteville citizens and the other covenants and agreements herein entered into and agreed upon by Friendship Community Care, Inc. as obligations to the City of Fayetteville, the City lets, leases and demises unto Friendship Community Care, Inc., subject to the terms and conditions contained herein, the following described property situated in Washington County, Arkansas. A part of the Northeast Quarter (NE 1/4) of the Northeast Quarter (NE I/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' 36" East 764.25 feet from the Northwest corner of the NE I/4 of the NE 1/4 of said Section 22, said point being on the West 40 acre tract line; thence South 87° 50'21" West 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. To have and to hold said premises unto the said Friendship Community Care, Inc. for and during the term herein stated, subject to the covenants, terms and conditions herein contained. 2. Term. This lease shall commence on June 21, 2011, and shall extend for a term of Ninety -Nine (99) years, ending at midnight on June 30, 2110. 3. Consideration. The primary consideration for the City is Friendship Community Care, Inc.'s agreement in paragraph 4 to serve Fayetteville citizens by promptly providing its housing services for developmentally disabled Fayetteville citizens. "Promptly providing its housing services for developmentally disabled Fayetteville citizens" means that Friendship Community Care, Inc. shall have its facility available no later than July 1, 2016, unless an extension is agreed to by City Council Resolution before that date. 4. Use. Friendship Community Care, Inc. agrees to use the lease premises for the purpose of constructing, operating and maintaining a housing services for developmentally disabled citizens facility. If at any time the property ceases to be used for this purpose, the lease shall terminate. Friendship Community Care, Inc. agrees to furnish housing services for developmentally disabled Fayetteville citizens and residents throughout this lease period. Friendship Community Care, Inc. shall deliver quarterly written reports to the Mayor's office concerning the number of Fayetteville citizens/residents served or otherwise assisted by Friendship Community Care, Inc. 5. Improvements. Friendship Community Care, Inc. may make any such improvements as are necessary to establish and provide housing services for developmentally disabled citizens. 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. Friendship Community Care, Inc. 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 2 Friendship Community Care, Inc. 920 North University Russellville, AR 72802 8. Assignment. Friendship Community Care, Inc. 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 Friendship Community Care, Inc. from liability for the obligation imposed by this lease. Friendship Community Care, Inc. 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. Friendship Community Care, Inc. 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. Friendship Community Care, Inc. 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. Friendship Community Care, Inc. shall be responsible for all maintenance, routine preventative or corrective, on any and all improvements made to the leased property. 11. Compliance with Laws. Friendship Community Care, Inc. 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. Friendship Community Care, Inc. agrees not to commit waste, nor permit waste to result or to be done to or upon the aforesaid premises. Further, Friendship Community Care, Inc. 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 Friendship Community Care, Inc.'s part to be observed and performed, Friendship Community Care, Inc. 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 IN WITN SaS, WHEREOF,parties hereto have hereunto set their hand and seals on this the .day of , 2011. FRIENDSHIP CITY OF FAYETTEVILLE, COMMUNITY CARE, INC. ARK • NSAS By: Name: TOM HILL Title: Vice President of Operations WITNESS: B e: LI Title: Ma ATTEST: ►/ ger- i`JO' 1 A L44:likd By: B ei6 (..c�� • y y. SONDRA E. SMITH, City Clerk Name: Title: RESOLUTION NO. 99-11 A RESOLUTION TO APPROVE A LEASE AGREEMENT OF ABOUT 2.2 ACRES WITH FRIENDSHIP COMMUNITY CARE, INC. TO SERVE DEVELOPMENTALLY DISABLED FAYETTEVILLE CITIZENS WHEREAS, on December 7, 2004, the Fayetteville City Council approved Resolution No. 198-04 and a lease agreement with Sage House, Inc. for 2.2 acres of city property immediately south of the Seven Hills Transitional Housing facility; and WHEREAS, unfortunately Sage House was unable to construct its transitional housing project so that its lease has been terminated; and WHEREAS, Friendship Community Care, Inc., a non-profit charitable corporation desires to lease this property in order to construct and operate a facility to provide housing services for developmentally disabled Fayetteville citizens. 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 with Friendship Community Care, Inc. attached as Exhibit "A" and authorizes Mayor Jordan to sign this Lease Agreement. PASSED and APPROVED this 21st day of June, 2011. APPROVED: By By: ATTEST: SONDRA SMITH, City Clerk/Treasurer S„tootttilit/, G ° Y Q ®PAYE-TEVILLE mG . ./..„ �� Nil -R$ Yolanda Fields Submitted By City of Fayetteville Staff Review Form City Council Agenda Items and Contracts, Leases or Agreements 6/21/2011 City Council Meeting Date Agenda Items Only Development Services Division Action Required: Community Services Department Approval lease agreement with Friendship Community Care INC. on 2.2 acres located on Huntsville Road (south of the current Seven Hills Transitional Housing Facility) Cost of this request Account Number Project Number Budgeted Item Category / Project Budget Program Category / Project Name Funds Used to Date Program / Project Category Name Remaining Balance Fund Name Budget Adjustment Attached _Axe Department ctor Date 1 City Attorney Finance and Internal Services Director G-C-2oct Date 6-b-2-011 Date Previous Ordinance or Resolution # Original Contract Date: Original Contract Number: Comments: Staff Recommends approval of lease Revised January 15, 2009 a�Fve.fevi�le ARKANSAS .accesstay+etteviile org CITY COUNCIL AGENDA MEMO THE CITY OF FAYETTEVILLE, ARKANSAS DEPARTNMENTCORRESPONDENCE To: Mayor and City Council Thru: Jeremy Pate, Director of Development Services 1C From: Yolanda Fields, CS Direc Date: June 3, 2011 Subject: Huntsville Property Lease PROPOSAL: Friendship Community Care, Inc. is a private, non-profit organization serving individuals with developmental disabilities in ten counties of the Arkansas River Valley region and waiver services in the entire state. Developmental disabilities include intellectual disability, epilepsy, cerebral palsy and similar disorders. The purpose of the organization is to provide supports and services to individuals and families that will allow them to be independent and productive citizens. Friendship Community Care, Inc. began operations in 1972 by providing day care services to preschool and school age children. During that first year, two staff members served twelve children. From this beginning, the necessity for additional services has driven the growth of the organization. Today, Friendship serves over five hundred individuals in a fifteen -county area. This organization has been providing services to this area since the beginning of 2010. A Fayetteville office was opened at the beginning of 2011. The City of Fayetteville would be entering into a long term lease with Friendship Community Care, Inc. for city owned property south of the current Seven Hills Transitional Housing facility. If funding is obtained by this organization the property will be used to construct a housing facility for individuals with developmental disabilities. RECOMMENDATION: Staff recommends approval of lease for 2.2 acres located on Huntsville Road (south of the current Seven Hills Transitional Housing Facility) to Friendship Community Care, Inc. BUDGET IMPACT: None S'*ZtKle www.accessfayetteville.org TO: Mayor Jordan City Council Departmental Correspondence CC: Yolanda Fields, Community Services Director FROM: Kit Williams, City Attorney DATE: June 7, 2011 RE: Friendship Community Care, Inc. Lease Agreement Kit Williams City Attorney Jason B. Kelley Assistant City Attorney On December 7, 2004, the City of Fayetteville leased about 2.2 acres of its property immediately south of the Seven Hills Transitional Housing Facility on Huntsville Road to Sage House, a non-profit corporation formed to provide transitional housing for Fayetteville citizens. "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 ...." Paragraph 3 of Lease Agreement Unfortunately, Sage House was unable to raise sufficient funding to construct its housing project and is no longer very active. Sage House was officially notified last month that its Lease Agreement was terminated because it did not build such transitional housing. Yolanda Fields has been working with Friendship Community Care, Inc., a non- profit corporation which has successfully provided day care or housing services for almost four decades in Arkansas. This charitable corporation desires to enter into the same type of lease agreement we had with Sage House, but probably has the expertise and experience to build a facility on our land. City Staff recommends we enter into such a contract which I have drafted for your consideration. LEASE AGREEMENT This Agreement made and entered into this 21St day of June, 2011, by and between the City of Fayetteville, Arkansas, Lessor, and Friendship Community Care, Inc., Lessee, Witnesseth: WHEREAS, Friendship Community Care, Inc. is a non-profit corporation established and dedicated to provide housing services for developmentally disabled citizens; and WHEREAS, providing housing services for developmentally disabled citizens is a valid public purpose; and WHEREAS, Friendship Community Care, Inc. will provide such services to Fayetteville citizens within the City of Fayetteville. NOW, THEREFORE, the City of Fayetteville and Friendship Community Care, Inc. agree as follows: 1. Leased Premises. For and in consideration of Friendship Community Care, Inc.'s promise to promptly provide housing services for developmentally disabled Fayetteville citizens and the other covenants and agreements herein entered into and agreed upon by Friendship Community Care, Inc. as obligations to the City of Fayetteville, the City lets, leases and demises unto Friendship Community Care, Inc., subject to the terms and conditions contained herein, the following described property situated in Washington County, Arkansas. 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 comer 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" West 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. To have and to hold said premises unto the said Friendship Community Care, Inc. 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, 2011, and shall extend for a term of Ninety -Nine (99) years, ending at midnight on June 30, 2110. 3. Consideration. The primary consideration for the City is Friendship Community Care, Inc.'s agreement in paragraph 4 to serve Fayetteville citizens by promptly providing its housing services for developmentally disabled Fayetteville citizens. "Promptly providing its housing services for developmentally disabled Fayetteville citizens" means that Friendship Community Care, Inc. shall have its facility available no later than July 1, 2016, unless an extension is agreed to by City Council Resolution before that date. 4. Use. Friendship Community Care, Inc. agrees to use the lease premises for the purpose of constructing, operating and maintaining a housing services for developmentally disabled citizens facility. If at any time the property ceases to be used for this purpose, the lease shall terminate. Friendship Community Care, Inc. agrees to furnish housing services for developmentally disabled Fayetteville citizens and residents throughout this lease period. Friendship Community Care, Inc. shall deliver quarterly written reports to the Mayor's office concerning the number of Fayetteville citizens/residents served or otherwise assisted by Friendship Community Care, Inc. 5. Improvements. Friendship Community Care, Inc. may make any such improvements as are necessary to establish and provide housing services for developmentally disabled citizens. 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. Friendship Community Care, Inc. 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 Friendship Community Care, Inc. 920 North University Russellville, AR 72802 8. Assignment. Friendship Community Care, Inc. 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 Friendship Community Care, Inc. from liability for the obligation imposed by this lease. Friendship Community Care, Inc. 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. Friendship Community Care, Inc. 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. Friendship Community Care, Inc. 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. Friendship Community Care, Inc. shall be responsible for all maintenance, routine preventative or corrective, on any and all improvements made to the leased property. 11. Compliance with Laws. Friendship Community Care, Inc. 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. Friendship Community Care, Inc. agrees not to commit waste, nor permit waste to result or to be done to or upon the aforesaid premises. Further, Friendship Community Care, Inc. 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 Friendship Community Care, Inc.'s part to be observed and performed, Friendship Community Care, Inc. 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 IN WITNESS WHEREOF, the parties hereto have hereunto set their hand and seals on this the c I i" day of June, 2011. FRIENDSHIP COMMUNITY CARE, INC. By: Name: TOIL `HILL Title: Vice President of Operations CITY OF FAYETTEVILLE, By: By: SI Name: Title: