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HomeMy WebLinkAbout130-13 RESOLUTIONRESOLUTION NO. 130-13 A RESOLUTION TO APPROVE A FIVE YEAR LEASE OF THE PATIO ADJOINING THE OLD POST OFFICE TO THE PURCHASER OF THE OLD POST OFFICE, JIM HUSON BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section l: That the City Council of the City of Fayetteville, Arkansas hereby approves the attached five year Lease of the patio adjoining the Old Post Office to the purchaser of the Old Post Office, Jim Huson, for his use in conjunction with his business within the building. PASSED and APPROVED this 4th day of June 2013. APPROVED: ATTEST: By: 4"q"-' Cam- . A"-�' SONDRA E. SMITH, City Clerk/Treasurer tK ���� ;• G�1 Y p�'•sG�'. cam. FAYETTEVILLE: -A��`���4`, i k 0 �4� AGENDA REQUEST FOR: COUNCIL MEETING OF June 4, 2013 FROM: MAYOR LIONELD JORDAN ORDINANCE OR RESOLUTION TITLE AND SUBJECT: A Resolution to Approve a Lease with Jim Huson for the Patio Area Adjoining the Old Post Office APPROVED FOR AGENDA: Finance Director Paul Becker C ief of Staff Don Marr "13 Date 57, 9,2 - Date Date Date eDepartmental Correspondence RKANSA TO: Mayor Jordan City Council FROM: Kit Williams, City Attorney DATE: May 31, 2013 RE: Proposed Old Post Office Patio Lease Kit Williams City Attorney Jason B. Kelley Assistant City Attorney I met with Jim Huson, owner of Doe's Eat Place, and discussed the proposed Lease terms. Mr. Huson requested a few changes. I believe a couple minor changes would be agreeable to you and would be beneficial to the Old Post Office owner. Those proposed changes are as follows: In paragraph 5. MUSIC, amplified music on the patio would only be allowed "on Razorback home football game (days)" "from 2:00 P.M. until 10:00 P.M. if also approved by Conditional Use by the Planning Commission and in conformance with the City's Noise Ordinance." Thus, on home football Saturdays after the Farmers' Market closes at 2:00 P.M. until 10:00 P.M. the patio could have amplified music (if also permitted by Conditional Use). The second change would simply allow Mr. Huson to assign the patio lease to a tenant if he was leasing the building. This right to assignment is only applicable after notification of the City and the lack of a Resolution forbidding such assignment. Please see ¶ 7. We also used Mr. Huson's Fayetteville OPO, LLC as the leasing party rather than Mr. Huson personally. Attached please find the slightly modified Lease that Mr. Huson has now signed for his LLC. LEASE This Agreement, entered into this �day of June, 2013 by and between the City of Fayetteville, whose address is 113 West Mountain and Fayetteville OPO, LLC whose mailing address is 3862 East Chadwick Drive, Fayetteville, Arkansas 72701. WITNESSETH: 1. LEASED PREMISES. For and in consideration of the rents, covenants and agreements herein entered into and agreed upon by Fayetteville OPO, LLC as obligations to the City of Fayetteville, the City of Fayetteville leases to Fayetteville OPO, LLC subject to the terms and conditions contained herein, the improved seating and patio area adjoining the old Post Office Building and within the fence containing approximately 1676 square feet. Fayetteville OPO, LLC agrees to lease this patio area for $100.00 per month and to abide by and faithfully perform all of the covenants, terms, and conditions stated below.. 2. TERM. This lease shall commence on July 1, 2013 and shall extend five (5) years until June 30, 2018. If at the end of the first term Fayetteville OPO, LLC shall have fully performed every agreement and covenant pursuant to the terms of this lease, Fayetteville OPO, LLC shall have the right to renew this lease for an additional five (5) year term if so requested in writing provided to the Mayor no later than April 15, 2018. All terms of the original Lease shall remain the same except that the rent shall increase to $200.00 per month. 3. RENT. Fayetteville OPO, LLC agrees to pay the City of Fayetteville the rental rate of One Hundred Dollars ($100.00) per month payable in advance. As further consideration for this Lease and in recognition of the 50% reduction in lease payments as paid by the last restaurant leasing the patio from the City, Fayetteville OPO, LLC agrees: (A) to continue to provide the space and electricity to operate the wireless internet broadcast antennas for the Square provided by Cox Communications, (B) to continue to allow the A & P Commission to attach and operate its outside speakers for Lights of the Ozarks and provide electricity for the speakers, (C) to refrain from objecting or legally challenging the closure of City streets and parking spaces around the Square during the Saturday's Farmers' Market, First Thursday, and occasional special events authorized by the Mayor such as the FHS homecoming parade and celebration. 4. ALTERATION OF IMPROVEMENTS. Any alteration of the improvements within the City of Fayetteville's leased premises must be approved by the Mayor prior to such alteration. 5. MUSIC. Fayetteville OPO, LLC agrees that only live, non -amplified music will be permitted on the leased premises which shall not be loud enough to disturb persons enjoying the Square Gardens, with the exception that on Razorback home football games amplified music shall be allowed from 2:00 P. M. until 10:00 P. M. if also approved by Conditional Use by the Planning Commission and in conformance with the City's Noise Ordinance. 6. SIGNS AND ADVERTISING. No sign, picture, advertisement, or notice shall be displayed on any part of the leased premises visible to the public outside the patio area without the previous written consent of the City of Fayetteville. 7. LIMITED RIGHT OF ASSIGNMENT AND SUCCESSION. This Lease agreement shall inure to the benefit of and be binding upon Fayetteville OPO, LLC and the City of Fayetteville. If Fayetteville OPO, LLC wishes to assign this Lease, it must notify the Mayor's Office in writing at least 30 days before such assignment is anticipated with the name of the proposed assignee. Unless the City Council objects by passing a Resolution forbidding such assignment within 30 days after proper notice, Fayetteville OPO. LCC may assign this lease if the assignee has agreed in writing to honor all the terms of this Lease. 8. TAXES. Fayetteville OPO, LLC shall pay any and all ad valorem taxes or special improvement district taxes levied and assessed against the leased premises and the improvements located thereon during the term of this lease. Fayetteville OPO, LLC also agrees to promptly and properly pay all Fayetteville Hotel Motel and Restaurant taxes and all Alcoholic Beverage taxes during this Lease. Failure to properly and timely pay all HMR, Alcoholic Beverage or other State or City tax would constitute a material breach of this Lease and justify the City of Fayetteville to terminate this Lease for cause. 9. COMPLIANCE WITH LAWS. Fayetteville OPO, LLC agrees not to violate any law, ordinance, rule or regulation of any government authority having jurisdiction of the leased premises. 10. INSURANCE ON LEASED PROPERTY. Fayetteville OPO, LLC shall be solely responsible for maintaining whatever insurance he deems necessary on the leased property. The City of Fayetteville makes no warranty that this area is fit for any purposes to which Fayetteville OPO, LLC may use it and shall not be liable for any injuries or damage which might occur upon the Leased premises.. 11 RIGHT OF INSPECTION. The City of Fayetteville shall have the right, in person or through the City of Fayetteville's duly authorized representative, at all reasonable times to inspect the leased premises. 12. ACCEPTANCE OF PREMISES. The Fayetteville OPO, LLC acknowledges that he has inspected the premises and determined them adequate for his intended uses. Fayetteville OPO, LLC accepts the premises in their current condition. 13. MAINTENANCE OF LEASED PREMISES. Fayetteville OPO, LLC shall be responsible for maintaining the improvements upon the leased premises in a satisfactory condition and the premises shall, at all times, be maintained in a neat and orderly condition. Fayetteville OPO, LLC's business operations will be carried on in accordance with the highest standards for such businesses, particularly in the areas of cleanliness, service and noise. 14. RETURN OF LEASED PROPERTY. At the end of the term of this lease, or upon any other earlier termination, Fayetteville OPO, LLC agrees promptly and 2 peaceably to restore possession of the leased premises to the City of Fayetteville in as good condition as they were when delivered to Fayetteville OPO, LLC, ordinary wear and tear expected. 15. NOTICES. Any notice called for or permitted under the terms hereof shall be given in writing and sent by certified mail to Fayetteville OPO, LLC, at 3862 East Chadwick Drive, Fayetteville, AR 72702 and to the Mayor's Office, City of Fayetteville, 113 W. Mountain St., Fayetteville, AR 72701. If such certified mail is returned to sender, the City of Fayetteville may provide adequate notice by posting said Notice on the premises. 16. WASTE. Fayetteville OPO, LLC agrees not to commit waste, nor permit waste to result or to be done to or upon the leased premises, nor to store or permit to be stored thereon any explosives, combustible substances or dangerous materials; nor to operate or permit to exist thereon any public or private nuisance. 17. RIGHT TO CURE. If Fayetteville OPO, LLC shall default in any of the covenants, agreements, conditions, or undertakings herein contained to be kept, observed and performed by Fayetteville OPO, LLC, the City of Fayetteville shall give notice of such default in writing to Fayetteville OPO, LLC and Fayetteville OPO, LLC shall have thirty (30) days from and after the giving of such notice to eliminate and/or cure the cause of such default. If said default is eliminated or cured with the aforementioned thirty (30) days, Fayetteville OPO, LLC shall not be considered in default or in breach of this lease. 18. SEVERABILITY. Each paragraph of this lease agreement 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 will remain in full force and effect. 19. INTERPRETATION AND VENUE. This lease agreement shall be interpreted according to and enforced under the laws of the State of Arkansas with p[roper jurisdiction and venue in Washington County, Arkansas. 20. 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. 21. NON -WAIVER PROVISION. The failure of the City of Fayetteville or Fayetteville OPO, LLC to insist upon the strict and literal performance of any agreement or conditions herein or to exercise any option retained or granted by reason of a default by Fayetteville OPO, LLC shall not constitute a waiver of the City of Fayetteville's right thereafter to insist upon and enforce full performance of such conditions and agreements. tj IN WITNESS WHEREOF, the City of Fayetteville and Fayetteville OPO, LLC by and through its President Jim Huson have hereunto set their hands and seals and have caused their names to be hereunto affixed by the undersigned officers who are duly authorized to act, on this 11%y of June, 2013. FAYETTEVILLE OPO, LLC e'� Witness: N e &kTitle CITY OF FAYETTEVILLE, ARKANSAS LIONELD Mayor Attest: f &. J, , e a., Sondra Smith, Cityx�01�11R111jt � �E5 a 11 Departmental Correspondence RKANSAS Kit Williams City Attorney KelleyJason B. TO: Mayor Jordan Assistant City Attorney City Council CC: Don Marr, Chief of Staff Paul Becker, Finance Director FROM: Kit Williams, City Attorney DATE: May 16, 2013 RE: Lease of Patio area abutting Old Post Office to new owner Mr. Huson's letter (attached) Mr. Jim Huson is in the process of purchasing the Old Post Office which has been vacant and unused for the last few years. Like many of the previous tenants of the owner who may sell this property to Mr. Huson, he would like to lease the patio area which was improved by the Hog City Diner managers into a viable restaurant seating area and leased from the City of Fayetteville for $139.75 monthly in a long term lease agreed to by the City Council on July 21, 1998. The most recent tenant, The Urban Table, agreed to pay $200.00 a month to lease the patio area in 2007. Unfortunately, none of the recent tenants have been able to be successful enough to remain in business for a long time at the Old Post Office. The Administration and City Council need to determine whether to lease the patio area and for how much in order for Mr. Huson (who operates Doe's Eat Place on Dickson) to decide whether to go forward with his plans to purchase the Old Post Office. In his letter to us, Mr. Huson has asked that the City lease this patio area to him for no money. Currently, the Old Post Office has provided space and electricity for the wireless transmitter that provides service for the entire Square which he would continue to do as partial compensation for the use of the patio area. I believe he would also permit the continued use of the outside speakers on his building which are used during the Lights of the Ozarks. I would want him to agree not to object or legally challenge the closure of whatever streets and parking spaces around the Square which the City Council might authorize for the Saturday's Farmers' Market, First Thursday and occasional special events (FHS Homecoming parade, etc.). The Old Post Office is certainly the most affected business by these street closures which also remove public parking that could otherwise be used by his potential customers. The Administration and City Council could offer a start-up period with no or small cash payments to lease the patio area with cash payments beginning or increasing after a few years as Mr. Huson's new location at the Old Post Office becomes more established and, hopefully, more profitable. The other provisions of the previous leases to protect other visitors to the Square such as no amplified music, no signs on the leased area, etc. should also be included in whatever lease the City Council might offer to Mr. Huson. Mr. Huson needs a prompt response so with the permission of the Mayor and City Council, I will ask for your'unofficial suggestions (no voting) about this potential lease at the end of the next City Council meeting (right before final adjournment). I will then prepare a lease attempting to mirror your wishes that you can discuss and act on during the next City Council meeting. Ladies and Gentlemen - I recently made an offer to purchase the property located at 1 W. Center St. formerly known as The Old Post Office. This offer has been accepted and we are moving forward toward closing. As a small business owner in Fayetteville since 1999, 1 am aware of both the historical importance of this property and the recent struggles that it has faced in being able to sustain a viable tenant(s). I feel it is very important to work in conjunction with the City of Fayetteville and it's offices to further enhance the appeal of the Fayetteville Square. I am aware of the previous arrangements between the current property owner and the City of Fayetteville regarding the outdoor speaker system mounted to the building, the Christmas lighting installed on the exterior of the building and the storage of the A&P's wi-fi equipment currently housed within the property, and plan to continue cooperation with the city in regards to these items. I also plan to have a tenant(s) in place within the property in the very near future. I feel this will be a great benefit to the City of Fayetteville as it will restore life to a beautiful property that, as the centerpiece of the Historic Downtown Square, has began to fall into disrepair and seems to be becoming more of a relic that a lively city center. With cities such as Bentonville already seeing enormous economic growth and development in an around their City Square, and other cities such as Springdale in the planning stages of major renovations and development of their Downtown area, I feel it is very important for us all to work together in keeping the Fayetteville Square economically and culturally competitive as the economy of Northwest Arkansas and the nation as a whole begins to rebound from a long recession. Rapid re -occupation of this property will not only benefit me as prospective property owner, but will certainly benefit the city in the way of tax revenues, and the further development of the Fayetteville Square as a viable business, entertainment and historic district. My only concern going forward regards the conditions and usage of the small outdoor patio area situated on the southwest corner of the property. I understand that previous tenants have had different arrangements with the city regarding usage this area, and I would like to get something concrete from the City in regards to this area as we move forward. I hope that, in the interest of the aforementioned revitalization of the Downtown Square, and the potential tax revenues that can be generated by a successful business(s) occupying this property, that the City of Fayetteville would see fit to grant free usage of this small area to the property owner and/or the future adjoining business located within the property. As it sits now, and has for several years, it is a quaint little garden patio that shows no signs of life in the building and generates no revenue for the property owner or tax revenue for the City of Fayetteville. What it could be, is a quaint little garden patio, bustling with diners, shoppers and visitors, bringing life to the City center and generating revenue for a small business owner and the City of Fayetteville. By granting usage of this patio area to the property, it will certainly expedite and enhance the probability of drawing in a prospective tenant, who can therefore begin to breathe some life back into the vacant building and be a centerpiece to the revitalization and growth of the Downtown Fayetteville Area. As stated before, I feel as if our continued cooperation with the City of Fayetteville, coupled with the potential tax revenue generated for the City from its use, is reasonable compensation for use by me as property owner or any future tenant of the adjoining property. I respectfully request that the City Council consider this cooperation with me as the new owner of the property. As I mentioned before, we are working quickly toward closing on the property, and would like to have an agreement in place with the City of Fayetteville as soon as possible. I appreciate your time and consideration on this matter, and I am looking forward to a bright and prosperous future for The Old Post Office and the Historic Downtown Fayetteville Square. Sincerely - Jim Huson Doe's Eat Place (479) 601-6005 RKANSAS 0"� Departmental Correspondence aL Kit Williams City Attorney Jason B. Kelley TO: Mayor Jordan Assistant City Attorney City Council CC: Don Marr, Chief of Staff Paul Becker, Finance Director FROM: Kit Williams, City Attorney DATE: May 20, 2013 RE: Draft of Mayor's Possible Lease of Patio area After consulting with Mayor Jordan about previous leases of the Old Post Office patio area, the need to continue providing wireless internet to the Square from the Old Post Office site, and the desire to do what we can to encourage active use of the Old Post Office as a ongoing business site, the Mayor suggested that we draft a lease that would cut the previous rental rate in half, to only $100.00 per month for Mr. Huson. Attached please find the proposed Lease I drafted for your consideration. RESOLUTION NO. A RESOLUTION TO APPROVE A FIVE YEAR LEASE OF THE PATIO ADJOINING THE OLD POST OFFICE TO THE PURCHASER OF THE OLD POST OFFICE, JIM HUSON 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 attached five year Lease of the patio adjoining the Old Post Office to the purchaser of the Old Post Office, Jim Huson, for his use in conjunction with his business within the building. PASSED and APPROVED this 4th day of June 2013. APPROVED: 51 LIONELD JORDAN, Mayor ATTEST: SONDRA E. SMITH, City Clerk/Treasurer LEASE This Agreement, entered into this day of June, 2013 by and between the City of Fayetteville, whose address is 113 West Mountain and Jim Huson d/b/a Doe's Eat Place whose address is Fayetteville, Arkansas 72701. WITNESSETH: 1. LEASED PREMISES. For and in consideration of the rents, covenants and agreements herein entered into and agreed upon by Jim Huson as obligations to the City of Fayetteville, the City of Fayetteville leases to Jim Huson subject to the terms and conditions contained herein, the improved seating and patio area adjoining the old Post Office Building and within the fence containing approximately 1676 square feet. Jim Huson agrees to lease this patio area for $100.00 per month and to abide by and faithfully perform all of the covenants, terms, and conditions stated below.. 2. TERM. This lease shall commence on July 1, 2013 and shall extend five (5) years until June 30, 2018. If at the end of the first term Jim Huson shall have fully performed every agreement and covenant pursuant to the terms of this lease, Jim Huson shall have the right to renew this lease for an additional five (5) year term if so requested in writing provided to the Mayor no later than April 15, 2018. All terms of the original Lease shall remain the same except that the rent shall increase to $200.00 per month. 3. RENT. Jim Huson agrees to pay the City of Fayetteville the rental rate of One Hundred Dollars ($100.00) per month payable in advance. As further consideration for this Lease and in recognition of the 50% reduction in lease payments as paid by the last restaurant leasing the patio from the City, Jim Huson agrees: (A) to continue to provide the space and electricity to operate the wireless internet broadcast antennas for the Square provided by Cox Communications, (B) to continue to allow the A & P Commission to attach and operate its outside speakers for Lights of the Ozarks and provide electricity for the speakers, (C) to refrain from objecting or legally challenging the closure of City streets and parking spaces around the Square during the Saturday's Farmers' Market, First Thursday, and occasional special events authorized by the Mayor such as the FHS homecoming parade and celebration. 4. ALTERATION OF IMPROVEMENTS. Any alteration of the improvements within the City of Fayetteville's leased premises must be approved by the Mayor prior to such alteration. 5. MUSIC. Jim Huson agrees that only live, non -amplified music will be permitted on the leased premises which shall not be loud enough to disturb persons enjoying the Square Gardens. 6. SIGNS AND ADVERTISING. No sign, picture, advertisement, or notice shall be displayed on any part of the leased premises visible to the public outside the patio area without the previous written consent of the City of Fayetteville. 7. NO RIGHT OF ASSIGNMENT OR RIGHT OF SUCCESSION. This Lease agreement shall inure only to the benefit of and be binding upon Jim Huson and the City of Fayetteville and not to their respective heirs, successors and assigns. This lease is not assignable without the written consent of the City of Fayetteville. 8. TAXES. Jim Huson shall pay any and all ad valorem taxes or special improvement district taxes levied and assessed against the leased premises and the improvements located thereon during the term of this lease. Jim Huson also agrees to promptly and properly pay all Fayetteville Hotel Motel and Restaurant taxes and all Alcoholic Beverage taxes during this Lease. Failure to properly and timely pay all HMR, Alcoholic Beverage or other State or City tax would constitute a material breach of this Lease and justify the City of Fayetteville to terminate this Lease for cause. 9. COMPLIANCE WITH LAWS. Jim Huson agrees not to violate any law, ordinance, rule or regulation of any government authority having jurisdiction of the leased premises. 10. INSURANCE ON LEASED PROPERTY. Jim Huson shall be . solely responsible for maintaining whatever insurance he deems necessary on the leased property. The City of Fayetteville makes no warranty that this area is fit for any purposes to which Jim Huson may use it and shall not be liable for any injuries or damage which might occur upon the Leased premises.. 11 RIGHT OF INSPECTION. The City of Fayetteville shall have the right, in person or through the City of Fayetteville's duly authorized representative, at all reasonable times to inspect the leased premises. 12. ACCEPTANCE OF PREMISES. The Jim Huson acknowledges that he has inspected the premises and determined them adequate for his intended uses. Jim Huson accepts the premises in their current condition. 13. MAINTENANCE OF LEASED PREMISES. Jim Huson shall be responsible for maintaining the improvements upon the leased premises in a satisfactory condition and the premises shall, at all times, be maintained in a neat and orderly condition. Jim Huson's business operations will be carried on in accordance with the highest standards for such businesses, particularly in the areas of cleanliness, service and noise. 14. RETURN OF LEASED PROPERTY. At the end of the term of this lease, or upon any other earlier termination, Jim Huson agrees promptly and peaceably to restore possession of the leased premises to the City of Fayetteville in as good condition as they were when delivered to Jim Huson, ordinary wear and tear expected. 15. NOTICES. Any notice called for or permitted under the terms hereof shall be given in writing and sent by certified mail to Jim Huson, at , Fayetteville, AR 72702 and to the Mayor's Office, City of Fayetteville, 113 W. Mountain St., Fayetteville, AR 72701. If such certified mail is returned to sender, the City of Fayetteville may provide adequate notice by posting said Notice on the premises. 2 16. WASTE. Jim Huson agrees not to commit waste, nor permit waste to result or to be done to or upon the leased premises, nor to store or permit to be stored thereon any explosives, combustible substances or dangerous materials; nor to operate or permit to exist thereon any public or private nuisance. 17. RIGHT TO CURE. If Jim Huson shall default in any of the covenants, agreements, conditions, or undertakings herein contained to be kept, observed and performed by Jim Huson, the City of Fayetteville shall give notice of such default in writing to Jim Huson and Jim Huson shall have thirty (30) days from and after the giving of such notice to eliminate and/or cure the cause of such default. If said default is eliminated or cured with the aforementioned thirty (30) days, Jim Huson shall not be considered in default or in breach of this lease. 18. SEVERABILITY. Each paragraph of this lease agreement 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 will remain in full force and effect. 19. INTERPRETATION AND VENUE. This lease agreement shall be interpreted according to and enforced under the laws of the State of Arkansas with p[roper jurisdiction and venue in Washington County, Arkansas. 20. 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. 21. NON -WAIVER PROVISION. The failure of the City of Fayetteville or Jim Huson to insist upon the strict and literal performance of any agreement or conditions herein or to exercise any option retained or granted by reason of a default by Jim Huson shall not constitute a waiver of the City of Fayetteville's right thereafter to insist upon and enforce full performance of such conditions and agreements. IN WITNESS WHEREOF, the City of Fayetteville and Jim Huson have hereunto set their hands and seals and have caused their names to be hereunto affixed by the undersigned officers who are duly authorized to act, on this _ day of June, 2013. JIM HUSON CITY OF FAYETTEVILLE, ARKANSAS By: JIM HUSON Witness - Name & Title LIONELD JORDAN Mayor Attest: Sondra Smith, City Clerk 3 RESOLUTION NO.128-07 A RESOLUTION APPROVING A LEASE WITH THE URBAN TABLE, LLC FOR THE PATIO WITHIN THE SQUARE GARDENS FOR USE AS AN OUTDOOR DINING AREA. 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 with The Urban Table, LLC of the patio within The Square Gardens for use as an outdoor dining area. A copy of the Lease, marked Exhibit "A," is attached hereto and made a part hereof. „s111111+1r, RwTa••,,, PASSED and APPROVED this 17f day of July, 2007. '��`�' ��� Y of '•G�� APPROVED: By: FAYETT ATTEST: EVILLE By: SONDRA E. SMITH, City Clerk/Treasurer LEASE I1 20t3 This A ment, made and entered into this 77 i7 day of TY " 2007, by and between City of Fayetteville of Payeftv4U . whose address is 113 West Mountain and rban Table, LLC hoseAaddress is west Road, Fayetteville, Arkansas, 72704. AiAsslini WITNESSETH: 1. LEASED PREMISES. For and in consideration of the rents, covenants and agreements herein entered into and agreed upon by CE12jn Table, as obligations to the City of Fayetteville, the City of Fayetteville leases to The Urban Table, LLC subject to the terms and conditions contained herein, the improved seating area adjoining the old Post Office Building within the fence containing approximately 1,676.16 square feet more or less, situated in Washington County, Arkansas as shown by the Site Plan of Wittenberg, Delony & Davidson, Inc. as attached as Exhibit A. To have and to hold said premises unto said The Urban Table, LLC, for and during the term herein stated, subject to the covenants, terms, conditions and liens herein contained. 2. TERM. This lease shall commence on 2007 and shall extend for an initial term of two (2) years. If The Ur6an Table, LLC shall have fully performed every agreement and covenant on The Urban Table, LLC part to have been kept and performed under the term of this lease at the time of exercise and at the time of renewal, The Urban Table, LLC is hereby granted the right if mutually agreeable with the City of Fayetteville and option to extend this Iease, upon the same terms, with a three (3) percent increase in rent for an additional period of two (2) years, with such option to be exercised in writing by The Urban Table, LLC not later than one hundred eighty (180) days prior to the expiration of the basic or original term of this lease. 3. RENT. The Urban Table, LLC agrees to pay to City of Fayetteville the annual rental rate of $2,400.00 payable in monthly installments of $200.00 each, to be paid in advance beginning on the first day of 2007 and on the first day of each and every month thereafter. No security deposit shall be required. 4. USE. The Urban Table, LLC agrees to use the leased premises for the purpose of operating an outdoor dining area and for no other purpose or purposes without the written consent of the City of Fayetteville having been obtained in advance. 5. CONSTRUCTION OF EMPPROVEMENTS. Any alteration of the improvements within the City of Fayetteville's leased premises must be approved by the Mayor prior to such alteration. 6. INGRESS AND EGRESS. Except for emergency and handicapped access, all ingress and egress to and from the leased premises shall be through the Old Post Office building. Handicapped access is limited to the east area of the leased premises. Permission from the City of Fayetteville must be obtained for special event access to the patio area from the east entry. 7. MUSIC. The Urban Table, LLC agrees that only live non -amplified music will be permitted on the leased premises which shall not be loud enough to disturb persons enjoying the Square Gardens. 8. SIGNS AND ADVERTISING. No sign, picture, advertisement, or notice shall be displayed on any part of the leased premises visible to the public without the previous consent, in writing, or the City of Fayetteville. 9. LITTER REMOVAL. The Urban Table, LLC shall provide daily litter removal from the portion of the Town Square in front of its public entrances. 10. NON -SUCCESSION. This lease agreement shall inure only to the benefit of and be binding upon the parties hereto and not to their respective heirs, successors and assigns. This lease is not assignable without the consent of the City of Fayetteville. 11. TAXES. The Urban Table, LLC shall pay any and all ad valorem taxes special improvement district taxes levied and assessed against said premises and the improvements located thereon during the term of this lease. 12. COMPLIANCE WITH LAWS. The Urban Table, LLC agrees not to violate any law, ordinance, rule or regulation of any government authority having jurisdiction of the leased premises. 13. INSURANCE OF THE URBAN TABLE, LLC'S PROPERTY. The Urban Table, LLC shall be solely responsible for maintaining insurance on its property, including but not limited to movables, trade fixtures installed by The Urban Table, LLC, furniture, furnishings and inventory. 14. RIGHT OF INSPECTION. The City of Fayetteville shall have the right, in person or through the City of Fayetteville's duly authorized representative, at all reasonable times to inspect the leased premises. 15. RIGHT OF SQUARE GARDEN RENOVATION. The City of Fayetteville reserves the right to close the patio area for renovation to the square 2 gardens as deemed necessary. Rent will be prorated during this time frame; however, lessee will be responsible for storing and securing all of the lessee's amenities on the patio during this time. It is the intent of the City of Fayetteville to minimize the time in which the patio area would need to be closed. 16. ALTERATIONS. The Urban Table, LLC shall have the right and privilege to make, at The Urban Table, LLC's expense, ordinary repairs and alterations to the leased premises; however, no alterations shall be made without the prior written consent of the City of Fayetteville. 17. FIXTURES. All trade fixtures installed by The Urban Table, LLC or acquired by The Urban Table, LLC independently of this lease shall remain The Urban Table, LLC's property and may be removed by The Urban Table, LLC at the expiration of this lease; provided, however, The Urban Table, LLC shall restore the leased premises and repair any damage thereto caused by such removal. 18. ACCEPTANCE OF PREMISES. The Urban Table, LLC acknowledges it has inspected the premises and determined them adequate for its intended uses. The Urban Table, LLC accepts the premises in their current condition. 19. MAINTENANCE OF LEASED PREMISES. The Urban Table, LLC shall be liable for all license fees, occupation taxes and the like in connection with the operation of any business on the leased premises, and shall pay all charges incurred by The Urban Table, LLC in connection with utility services of whatever kind or nature including any sewer charges and pickup of The Urban Table, LLC's trash and garbage. The Urban Table, LLC shall be responsible for maintaining the improvements upon the leased premises in a satisfactory condition and the premises shall, at all times, be maintained in a neat and orderly condition. The Urban Table, LLC's business operations will be carried on in accordance with the highest standards for such businesses, particularly in the areas of cleanliness and service. 20. INDEMNIFICATION OF CITY OF FAYETTEVILLE. 'The Urban Table, LLC shall defend, indemnify and hold the City of Fayetteville harmless against any expense, claim, loss or liability as the result of any breach by The Urban Table, LLC, The Urban Table, LLC's agents, servant, employees, customers, visitors or licensees, of any covenant or condition of this lease, or as a result of The Urban Table, LLC's use or occupancy of the demised premises, or the carelessness, negligence of improper conduct of The Urban Table, LLC, The 3 Urban Table, LLC's agents, servants, employees, customers, visitors or licensees. To facilitate the provisions hereof, The Urban Table, LLC shall keep and maintain at all times during the term of this lease, or any extension thereof, in full force and effect with a company or companies acceptable to City of Fayetteville, insurance against third party liability by reason of The Urban Table, LLC's occupancy of the demised premises with limits of liability thereunder of not less than $100,000.00 per person and $500,000.00 per accident with $500,000.00 coverage for property damage. 21. RETURN OF LEASED PROPERTY. At the end of the term of this lease, or upon any other earlier termination, The Urban Table, LLC agrees promptly and peaceably to restore possession of the leased premises to the City of Fayetteville in as good condition as they were when delivered to The Urban Table, LLC, ordinary wear and tear excepted. To accommodate this covenant, The Urban Table, LLC hereby waives any and all notice to which The Urban Table, LLC may be entitled under the laws of the State of Arkansas as a prerequisite to a suit/against The Urban Table, LLC for the unlawful detention of the property. 22. NOTICES. Any notice called for or permitted under the terms hereof shall be given in writing and sent by certified mail to The Urban Table, LLC, at 5405 West Wheeler, Fayetteville, AR 72704 and to the Mayor's Office, City of Fayetteville,113 W. Mountain St., Fayetteville, AR 72701. If such certified mail is returned to sender, the City of Fayetteville may provide adequate notice by posting said Notice on the premises. 23. WASTE. The Urban Table, LLC agrees not to commit waste, not permit waste to result or to be done to or upon the aforesaid property and premises; not to conduct any other business thereon or therein, nor store or permit to be stored thereon or therein any explosives, combustible substances or materials or any nature, which would increase the fire hazard or cause a premium to be charged for insurance higher than that charged for the present use of said property; and not to operate nor permit to be operated, nor to exist thereon or therein, any public or private nuisance. 24. RIGHT TO CURE. If The Urban Table, LLC shall default in any of the covenants, agreements, conditions, or undertakings herein contained to be kept, observed and performed by The Urban Table, LLC, the City of Fayetteville shall give notice of such default in writing to The Urban Table, LLC and The Urban Table, LLC shall have thirty (30) days from and after the giving of such notice to eliminate and/or cure the cause of such default. If said default is eliminated or cured with the aforementioned thirty (30) days, The Urban Table, LLC shall not be considered in default or in breach of this lease. 4 25. TERMINATION. Each party may terminate this lease by providing written notice to the other not less than sixty (60) days before the date of termination. 26. SEVERABILITY. Each paragraph of this Iease agreement 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 will remain in full force and effect. 27. INTERPRETATION. This lease agreement shall be interpreted according to and enforced under the laws of the State of Arkansas. 28. 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. 29. NON -WAIVER PROVISION. The failure of the City of Fayetteville or The Urban Table, LLC to insist upon the strict and literal performance of any agreement or conditions herein or to exercise any option retained or granted by reason of a default by The Urban Table, LLC shall not constitute a waiver of the City of Fayetteville's right thereafter to insist upon and enforce full performance of such conditions and agreements. IN WITNESS WHEREOF, the City of Fayetteville and The Urban Table, LLC have hereunto set their hands and seals and have caused their names to be hereunto affixed by the undersigned officers who are duly authorized to act, on this day of J u h t , 2007. THE URBAN TABLE, LLC CITY OF FAYETTEV ILLE, ARKANSAS By: Rhett Hall, resident The Urban Table, LLC ff Judy .all, Chairperson The Urban Table, LLC C:��7 Attest: Narnek Title i M. �`¢KITRf� ''• Attest: - ��• Sondra Smith, City Clerk er_ r , FAYEITEVILLE;