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HomeMy WebLinkAbout193-16 RESOLUTIONf ('r r 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 193-16 File Number: 2016-0486 SOUTHWIND HOSPITALITY HOLDINGS, LLC AMENDMENT NO. 1: A RESOLUTION TO APPROVE AMENDMENT NO. 1 TO THE CONTRACT WITH SOUTHWIND HOSPITALITY HOLDINGS, LLC TO REFLECT THE CORRECT NUMBER OF PARKING SPACES BEING LEASED IN THE MEADOW STREET PARKING DECK, AND TO APPROVE A CREDIT IN THE AMOUNT OF $700.00 FOR PAST OVERPAYMENT FOR TWO PARKING SPACES. 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 Amendment No. 1 to the lease agreement with Southwind Hospitality Holdings, LLC to reflect that the correct number of spaces being leased in the Meadow Street Parking Deck is 178 rather than 176, and further approves a credit in the amount of $700.00 for past overpayment of two parking spaces. PASSED and APPROVED on 11/1/2016 Y OF G��• FAYETTEVILLE;� Attest: �'G9iS • �,?'A t aP J`'�•�• X-n� C 4'.1-41 Sondra E. Smith, City Clerk Treasurer Page 1 Printed on 1112116 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 lgpi (479) 575-8323 5 Text File File Number: 2016-0486 Agenda Date: 11/1/2016 Version: 1 Status: Passed In Control: City Council Meeting File Type: Resolution Agenda Number: A. 3 SOUTHWIND HOSPITALITY HOLDINGS, LLC AMENDMENT NO. 1: A RESOLUTION TO APPROVE AMENDMENT NO. 1 TO THE CONTRACT WITH SOUTHWIND HOSPITALITY HOLDINGS, LLC TO REFLECT THE CORRECT NUMBER OF PARKING SPACES BEING LEASED IN THE MEADOW STREET PARKING DECK, AND TO APPROVE A CREDIT IN THE AMOUNT OF $700.00 FOR PAST OVERPAYMENT FOR TWO PARKING SPACES 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 Amendment No. 1 to the lease agreement with Southwind Hospitality Holdings, LLC to reflect that the correct number of spaces being leased in the Meadow Street Parking Deck is 178 rather than 176, and further approves a credit in the amount of $700.00 for past overpayment of two parking spaces. City of Fayetteville, Arkansas Page 1 Printed on 11/2/2016 City of Fayetteville Staff Review Form 2016-0486 Legistar File ID 11/1/2016 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item Justin Clay 10/12/2016 Parking & Telecommunications/ Chief of Staff Submitted By Submitted Date Division / Department Action Recommendation: Approving an amendment to the Lease Agreement for the Meadow Streeet (Municipal) Parking deck to reflect that the agreement is for 176 parking spaces. Account Number Project Number Budgeted Item? Budget Impact: Current Budget Funds Obligated Current Balance Fund Project Title Does item have a cost? Item Cost Budget Adjustment Attached? Budget Adjustment Remaining Budget V20140710 Previous Ordinance or Resolution # 162-11 Original Contract Number: Comments: Approval Date: CITY OF Fay' 1. le ARKANSAS MEETING OF NOVEMBER 1, 2016 TO: Lioneld Jordan, Mayor City Council CITY COUNCIL AGENDA MEMO THRU: Paul Becker, Chief Financial Officer Don Marr, Chief of Staff Peter Nierengarten, Director of Sustainability, Resilience and Parking FROM: Justin Clay, Parking Manager DATE: October 12, 2016 SUBJECT: Amend Parking Lease Agreement for Meadow Street Parking Deck RECOMMENDATION: Staff recommends amending the Lease Agreement for the Meadow Street (Municipal) Parking deck to reflect that the agreement is for 176 spaces. Staff further recommends issuing a credit of $700.00 to the Chancellor Hotel for past overpayment of two (2) spaces. BACKGROUND: On October 16, 1990, the City entered into a lease with FOURTEN SOUTH BROADWAY CORPORATION. The original Lease Agreement was written for all of the first floor and all of the third floor (roof) spaces for a total of 180 spaces (Attachment A). The Americans with Disabilities Act (ADA) of 1990 required designated access aisles for the handicapped spaces. For 51-100 parking spaces (the first floor fits this size) the ADA requires four (4) NIC spaces with access aisles for each vehicle. These access aisles could be shared by two H/C spaces or dedicated to a particular space. On October 16, 1990, an amendment to the Lease Agreement was made naming the Fayetteville Hotel Ventures Limited Partnership as the Tenant for 180 parking spaces in the parking deck. In August, 2004, Resolution 123-04 amended the lease with Radisson Hotel to "Continue to lease parking spaces in the Municipal Parking Deck for one additional year". The number of spaces given was 180 in the Contract Review memo. In June, 2006, Resolution 112-06 established a Lease Agreement with the Radisson Hotel for a total of 178 leasable spaces. No indication explaining the change in the number of spaces from 1990 was given. Mailing Address: 113 W. Mountain Street www_fayetteville-ar.gov Fayetteville, AR 72701 In July, 2010, Resolution 147-10 established a Lease Agreement with Ozark Asset Management for 89 spaces on the first level. In September, 2011, Resolution 162-11 established a Lease Agreement with Southwind Hospitality, LLC for 178 total leasable spaces. It is thought that the current three handicapped access aisles were designated on the first floor to bring the level into compliance with the ADA sometime after June, 2006, which resulted in the loss of three (3) parking spaces, bringing the total leased spaces to 177. DISCUSSION: In June, 2016, a diagram of all 3 levels was created showing the first floor having 83 regular spaces and 4 handicapped spaces plus 3 access aisles for a total of 87 leasable spaces. The third (roof) level has 88 regular spaces plus I handicapped space with no access aisle for a total of 89 leasable spaces. This results in a total of 176 leasable spaces for the combined 1St and 3rd levels. (Attachment B) In June, 2016, Parking Management staff was asked to and did meet with the new property management company representatives for the hotel. Ms. Maxine Dee, Regional Vice -President of Operations for the Schulte Hospitality Group (shg) and the Interim Manager of the hotel Ashley Kellam were inquiring as to how the parking deck operated, what they could do to increase revenue in the facility, and to ask us to examine the billings for this year as they counted a different number of spaces than they were being billed for. Billing has been for 89 spaces on the 1St level and 89 spaces on the 3rd (roof) level for a monthly total of 178 spaces. BUDGET/STAFF IMPACT: When corrected, this would affect the Parking budget revenue with a reduction in income of $1,200 annually There is no staff impact. SUMMARY: Using the current space counts, the City has over billed the hotel for at least the past 7 months by 2 spaces.(Attachments C -I) At $50.00 per space, per month, the billings in question total a difference of $100.00/month for a total year to date of $700.00. Staff recommends the Lease Agreement be amended to reflect the correct number of one hundred seventy-six (176) spaces. ATTACHMENTS: Amendment Southwind Lease Southwind Original Lease AMENDMENT #1 TO LEASE OF MEADOW STREET PARKING DECK Levels 1 and 3 BE IT KNOWN TO ALL: That the City of Fayetteville, Arkansas and Southwind Hospitality Holdings, LLC on this day of July, 2016, hereby agree that their Lease Agreement of September 6, 2011, shall be amended as follows: 1. The legal description contained in the Agreement shall be amended by substituting the following legal description of the Leased Premises: Eighty-seven (87) parking spaces located in the first level and eighty-nine (89) parking spaces located on the third level of the Meadow Street 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. 2. Paragraphs 1, 3 and 4 shall be amended by changing all references to the number of leased parking spaces on the first level of the parking deck from 89 to 87 and by changing the total number of leased parking spaces on the first and third floors of the parking deck from 178 to 176. The parties agree and understand that this Amendment is supplemental to their Lease Agreement of September 6, 2011, and that it does not alter, amend or abridge any of the rights, obligations, or duties of the parties not expressly addressed herein. IN WITNESS WHEREOF, the parties hereto have caused their signatures to be set by their authorized representatives effective the date set forth herein above. Southwind Hospitality Holdings, LLC Primed Name: -T -- c ,j Title: (k'-' ohm 't WITNESS: L Printed Name: Title: City gjayetteville, Arkansas Mayor ATTEST: ;l T• • REgS,��4 t=C)'�nyT1E�ILLE. Sondra E. Smith, City Clerk -Treasurer; r`T• y P Jz, ''..y�'•,RkANS . u LEASE OF MEADOW STREET PARKING DECK Levels 1 and 3 This Agreement, made and entered into this day of 2011, by and between the City of Fayetteville, Arkansas, a Municipal Corporation, 113 W. Mountain St., Fayetteville, Arkansas, acid Southwind .hospitality, LLC 5998 Place Blvd. I Iatticsburg, MS 39402. 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 Southwind Hospitality agrees to lease the premises as later described to Southwind Hospitality, LLC, and Southwind Hospitality, LLC agrees to pay rents set forth below and to lease from the City of Fayetteville, portions of the Meadow Street Parking Deck on that parcel of land situated in the County of Washington and State of Arkansas, and more particularly described as: Eighty-nine (89) parking spaces located in the first level and eighty- nine (89) parking spaces located on the third level of the Meadow Street 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 may be hereinafter referred to as the "Leased Premises". 1. Term of Lease. The initial tern of this Lease shall commence on October 1, 2011 after the execution of the lease by both parties and shall be for a period of one ( 1) year and cover only the first level with 89 parking spaces at $50,00 per month each or $4,450.00 per month. There shall be two automatic annual renewals, each for a period of seven (7) additional years. For each of the seven (7) year extensions Southwind Hospitality will lease 178 parking spaces at $50.00 per month on the first and third levels of the Meadow Street Parking Deck for a total monthly rental of $8,900.00, 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 Southwind Hospitality giving Southwind Hospitality 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 of the Fayetteville Municipal Parking Deck located at 25 E. Meadow Street for the term of the first 1 year lease. This lease shall cover the first and third levels (178 parking spaces) for years 2-15. 4. Rent, Southwind Hospitality shall pay to the City of Fayetteville as rent for the Leased Premises the following: a. The sum of fifty dollars ($50,00) per month per parking space (89) rented on the first level of the Leased Premises which monthly total shall be Four Thousand Four Hundred Fifty Dollars ($4,450.00). b. The sum of fifty dollars ($50.00) per month per parking space rented (89) on the third level of the Leased Premises which monthly total shall be Four Thousand Four Hundred Fifty Dollars ($4,450.00). The monthly rental shall be payable in consecutive monthly installments payable in advance on or before the first day of every calendar month. 5. Deposit. Southwind Hospitality shall pay to the City of Fayetteville a deposit in advance equal to one (1) months rent. Deposit must be paid to the City of Fayetteville within ten (10) business days upon execution of this Agreement. Upon termination of this Agreement, the deposit shall be applied to any outstanding balance due and the remainder returned to Southwind Hospitality within forty-five (45) days after termination of Agreement. 6. Use. Southwind Hospitality 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 and shall meet all present and fixture building codes, zoning and other laws. 7. Re airs. 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, Southwind Hospitality shall not knowingly commit or willfully permit to be committed on the Leased Premises any waste, damaging act or thing contrary to the rules and regulations prescribed from time to time by either federal, state or municipal authority. 8. 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 which is not the fault of Southwind hospitality and the cost of repairing the damage does not exceed 35% of the value of the Meadow Street Parking Deck, then the City of Fayetteville shall as soon as reasonably practical repair the damage caused by said fire or other casualty. If, however, the damage should exceed 35% of the value of the Meadow Street Parking Deck. the City of Fayetteville shall have the option of either repairing said premises or terminating this Lease as of the date of said fire or other casualty by giving notice to Southwind Hospitality within thirty (30) days after said date. If the damages should render the Leased Premises untenantable for the use of Southwind Hospitality's business as set forth herein, the rental from the date of said fire, or any major casualty not the fault of the Southwind Hospitality, 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. In the event the damage should exceed 35% of the value of the Meadow Street Parking Deck and the City of Fayetteville makes the decision not to repair the Leased Premises such a decision must be submitted in writing to Southwind Hospitality. Upon receipt of the notice from City of Fayetteville, Southwind Hospitality 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 as Southwind Hospitality's sole and exclusive expense with all terms of the Lease Agreement, except for abatement of rent provided for herein, continuing in effect. 9. 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, and all parking spaces properly striped and the premises painted. 10. 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 the Leased Premises. This equipment shall include parking gates, parking card readers, and automatic revenue control machines located at the entrance of the parking deck. 11. Parking Management Services. The City of Fayetteville shall provide services to manage the municipal parking deck located directly east of the Cosmopolitan Hotel, Fhis service shall include the following: a. Provide parking revenues and access control equipment for Leased Premises. 91 h. Program parking cards and distributing them to Southwind Hospitality; activate and deactivate parking cards as requested by Southwind Hospitality. 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, unless damages for required repairs were directly caused by Southwind Hospitality and/or its employees, 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 at least once per month, f. Frequently service the revenue control machines to ensure change 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 Southwind Hospitality for one hundred percent ( 100%) of the total revenues, less monies used to replenish quarter and dollar coin hoppers and/or cost to replenish parking cards. This revenue shall be reimbursed to Southwind Hospitality within thirty (30) 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 Southwind hospitality on a monthly basis. h. All expenses incurred for the purchase of equipment and supplies for the operations of the deck shall he 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 Southwind Hospitality`s and employees of the Parking Management Division for purposes of executing parking services. Southwind Hospitality may reallocate parking cards to a second party as they deem necessary; however, Southwind Hospitality may not resell parking spaces for a greater amount than that paid by Southwind Hospitality to the City of Fayetteville as set forth in this contract except that Southwind Hospitality is free to charge its hotel guests whatever parking fee it determines is appropriate. 12. Tenant Responsibilities, Southwind Hospitality 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 Southwind Hospitality for all parking cards issued to Southwind Hospitality at the actual cost of the cards plus applicable sales tax, The City of Fayetteville shall have the option to bill Southwind I lospitality for this cost. or may deduct the cost directly from the money collected from the revenue, control machines. If invoiced, Southwind Hospitality shall submit payment within thirty (30) days of invoice date to the City of Fayetteville. b. Provide advance notification to the City of Fayetteville and post signage at the Leased Premises at least forty-eight (48) hours in advance prior to any parking area closure on Leased Premises. c, Provide advance notification at least forty-eight (48) hours in advance to the City of Fayetteville when gates need to be programmed to open/close for special events or any other reason, d. Provide advance notification at least forty-eight ( 48) hours in advance to the City of Fayetteville when additional parking cards need to be issued and/or programmed. 13. Insurance. Southwind Hospitality shall be solely responsible for insuring its interests in the Leased Premises and improvements for its protection. 14. Taxes. The City of Fayetteville shall pay all real estate taxes and special assessments, if any, during the term of the Lease. 15. Utilities/Janitorial. The City of Fayetteville shall pay for all utility service and janitorial service in the leased Premises. 16. Nuisance. Southwind Hospitality covenants and agrees not to 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 or occupants of 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' Southwind Hospitality further agrees to 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. 17, Holding Over. Any occupancy by Southwind Hospitality of the Leased Premises beyond the expiration of this Lease as herein provided shall be a tenancy from month to month. 18. 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 Southwind Hospitality, 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. 19. Legal Representatives, Successors ad Assirns. It is further covenanted and agreed by and between the City of Fayetteville and Southwind Hospitality, 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 South wind Hospitality , it shall be held to include and apply to (wherever and whenever applicable) the heirs, executors, successors, personal or legal representatives and assigns of the City of Fayetteville or Southwind Hospitality, the same as if in each and every case so expressed. 20. 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 Southwind Hospitality cannot reasonably operate in the remainder in substantially the same manner as before. 21. Right Upon Default. The City of Fayetteville may declare Southwind Hospitality in default and terminate this lease if Southwind Hospitality shall do any 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 Southwind Hospitality written notice specifying the default; or b. Fail to timely pay monthly rental payments for two (2) or more months during any consecutive twelve (12) month period during the terns of this lease may, at the discretion of the City of Fayetteville, constitute default; or 6 c. Default in any other covenant of Southwind Hospitality in this Lease and fail to commence (subject to unavoidable delay) to take reasonable steps to remedy such default within twenty (20) days after the City of Fayetteville gives Southwind Hospitality written notice specifying the default. d. Upon the occurrence of any default that has not been fully and timely remedied, the City of Fayetteville may terminate this Lease upon ten (10) days written notice of its 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. Southwind Hospitality proceeds to cure the default or takes reasonable remedies to cure the default; or ii. Southwind Hospitality contests the amount claimed to be due or any other item for which an amount could be estimated (definite or estimated), and Southwind Hospitality 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 Southwind Hospitality and the City of Fayetteville or in accordance with the order of a court exercising jurisdiction over the controversy. 22. Termination. Neither party may terminate this agreement without consent of the other party unless the other party has committed a default. If the City of Fayetteville sells this parking garage to a third party, this lease and all extensions of this lease must be assigned -with the sale. 23. Assignability. Southwind Hospitality shall not, without the written consent of City of Fayetteville, assign this Lease, or any rights there under, or sublet any part of the Leased Premises, provided however, Southwind Hospitality 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, the purchaser agrees to continue to operate the purchased improvements as a hotel. Upon any approved assignment of this lease by Southwind Hospitality in which its assignee agrees to be bound by all terms of this Lease. Southwind Hospitality shall be released and discharged from any further obligations or liabilities it has hereunder and any assignee of Southwind Hospitality shall have all rights belonging to Southwind Hospitality under this Lease. 24. Entire Agreement. All previous negotiations and understandings between the City of Fayetteville and South -wind Hospitality, 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. 25. 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 Southwind Hospitality herein. 26. 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 Southwind Hospitality have executed this Agreement on or as of the date first written above. SOUTHWIND HOSPITALITY, LLC, an Arkansas limited liability company l3,,. • IKE THRASH --i asap bide Witness: CITY OF FAYEmVILLE, ARKANSAS I.,It.)N I:l .1) ,1Ul2I):1.\..)•1;a or Attest: 13': By: (I'rirft d Name and t•itle) SONDRA E. SMITH, City Clerk 4