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HomeMy WebLinkAbout167-18 RESOLUTION113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 167-18 File Number: 2018-0394 LEWIS FIELDS PROPERTY LEASE EXTENSION: A RESOLUTION TO APPROVE A ONE YEAR LEASE EXTENSION OF THE LEWIS FIELDS PROPERTY FROM THE UNIVERSITY OF ARKANSAS SYSTEM DIVISION OF AGRICULTURE, RESEARCH & EXTENSION WHEREAS, it is in the best interests of the City of Fayetteville and University of Arkansas System Division of Agriculture, Research & Extension to extend our twenty-five (25) year Lease Agreement for the Lewis Fields property with the Division of Agriculture for an additional year. 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 attached Lease Agreement with the University of Arkansas System Division of Agriculture, Research & Extension which extends the twenty-five (25) year lease of the Lewis Fields property for another year and authorizes Mayor Jordan to sign this lease. PASSED and APPROVED on 8/7/2018 Approved: l Joneld Attest: llew� L 1011111111111 Sondra E. Smith, City Clerk qrf f? f4 �,. U�FAY��EVILLE�` � SPS •_ '1VG `pN,;�` Page 1 Printed on 818118 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Text File File Number: 2018-0394 Agenda Date: 8/7/2018 Version: 1 Status: Passed In Control: City Council Meeting File Type: Resolution Agenda Number: A. 11 LEWIS FIELDS PROPERTY LEASE EXTENSION: A RESOLUTION TO APPROVE A ONE YEAR LEASE EXTENSION OF THE LEWIS FIELDS PROPERTY FROM THE UNIVERSITY OF ARKANSAS SYSTEM DIVISION OF AGRICULTURE, RESEARCH & EXTENSION WHEREAS, it is in the best interests of the City of Fayetteville and University of Arkansas System Division of Agriculture, Research & Extension to extend our twenty five (25) year Lease Agreement for the Lewis Fields property with the Division of Agriculture for an additional year. 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 attached Lease Agreement with the University of Arkansas System Division of Agriculture, Research & Extension which extends the twenty five (25) year lease of the Lewis Fields property for another year and authorizes Mayor Jordan to sign this lease. City of Fayetteville, Arkansas Page 1 Printed on 8/8/2018 City of Fayetteville Staff Review Form 201,8-0394 Legistar File ID 8/7/2018 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item Don Marr, Chief of Staff 7/24/2018 MAYORS ADMIN (015) Submitted By Submitted Date Division / Department Action Recommendation: LEWIS FIELDS PROPERTY LEASE EXTENSION: A RESOLUTION TO APPROVE A ONE YEAR LEASE EXTENSION OF THE LEWIS FIELDS PROPERTY FROM THE UNIVE OF ARKANSAS SYSTEM DIVISION OF AGRICULTURE, RESEARCH & EXTENSION Budget Impact: Account Number Project Number Budgeted Item? No Current Budget Funds Obligated Current Balance Does item have a cost? No Budget Adjustment Attached? No Item Cost Budget Adjustment Remaining Budget General Fund -Fund Project Title V20140710 Previous Ordinance or Resolution # Original Contract Number: Approval Date: Comments: Previous lease was eneterd into on the 6th of May 2003 CITY OF FAYETTEVILLE ARKANSAS MEETING OF AUGUST 7, 2018 TO: Mayor and City Council FROM: Don Marr, Chief of Staff DATE: July 24, 2018 CITY COUNCIL MEMO SUBJECT: City Council Agenda Session Item to approve a Resolution which would approve an extension of the Land Lease between the University of Arkansas System Division of Agriculture and the City of Fayetteville for land described as Lewis Fields Property RECOMMENDATION: City Staff recommends the City Council approve and the Mayor sign the attached lease agreement, extending the lease between the City of Fayetteville and the University of Arkansas System Division of Agriculture for 12 months beginning July 1St 2018 and running for a 12 month term to expire June 301h, 2019. BACKGROUND: The City went into a lease agreement for Indian Hills Property (City Property located south of Chick-Fil-A on Razorback Road) and Lewis Fields (for University of Arkansas System Division of Agriculture) property located at N. Lewis Avenue and W Mount Comfort Road more than 25 years ago, and the joint lease of these properties expired June 30th 2018. DISCUSSION: The Mayor requested the University of Arkansas System Division of Agriculture consider the extension of the Lewis Fields lease for an additional 12 months, beginning July 1St, 2018 and running through June 30th 2019. The Division of Agriculture responded with a willingness to agree to this extension with two other lease requirements. The first was a 60 Day Cancellation clause should the need for the Division to respond to an offer for purchase arise. This lease extension would allow both the School District Administration and School Board; and the Mayor and City Council to discuss any partnership possibilities and future land purchase options. The City has requested our own appraisal on the property as we pursue these discussions. It is the Mayor's plan to bring this forward to the City Council for discussion during the upcoming Bond Program discussions. Mailing Address: 113 W. Mountain Street www,fayetteville-ar.gov Fayetteville, AR 72701 BUDGET/STAFF IMPACT: There is a budget impact to the city to maintain the property as we have been maintaining it for park purposes and to pay any utilities associated with the land under lease. Attachments: 1. Staff review form 2. Land Lease Agreement RECEIVED AUG 15 2018 CITY OF FAYETTEVILLE CITY CLERK'S OFFICE LEASE AGREEMENT This LEASE AGREEMENT is entered into between the City of Fayetteville, Arkansas (the "City"), an Arkansas municipal corporation, and the Board of Trustees of the University of Arkansas acting for and on behalf of the University of Arkansas System Division of Agriculture (hereinafter the "University"). Whereas, the University owns certain property known as Lewis Fields near Mt. Comfort Road and Lewis Avenue in Fayetteville, Arkansas which was previously leased to the City for recreational purposes and parking lots, for a 25 year period through a Joint Lease Agreement that expired on June 30, 2018; and Whereas, the prior lease has expired, but the parties desire to enter into this new Lease Agreement to allow the City to use the Lewis Fields property for recreational purposes for a period of one year, beginning July 1, 2018 and running through June 30, 2019. NOW THEREFORE, in consideration of the mutual promises of the parties contained herein, the best interest of the public, and other good and valuable consideration, the parties agree as follows: 1. LEASED PREMISES. The University hereby leases the property known as Lewis Fields ("Leased Premises") to the City (that being the same property described in numbered Paragraph 1 of the Joint Lease Agreement of June 29, 1993), which is situated in Fayetteville, Washington County, Arkansas, and more specifically described below: The Northwest Quarter (NW %) of the Northeast Quarter (NE %) of Section Eight (8) in Township Sixteen (16) North, Range Thirty (30) West of the 5t" Principal Meridian, less twelve and one-half (12 %) acres of equal width off the East side of said 40 acre tract; and less and except easements of record, containing twenty-seven and one half (27 %) acres more or less, all in Washington County, Arkansas. 2. STRUCTURES. The City shall be responsible for the care, maintenance, and repair of all structures and parking lots located on the Leased Premises during the term of the lease, and the City shall not construct any additional permanent structures or parking lots on the Leased Premises without the prior written approval of the University. 3. RENT. In lieu of any monetary rent, as consideration for the use of the Leased Premises the City (at its sole cost and expense) shall maintain the Leased Premises in good condition, including the care, maintenance, and repair of the structures and parking lots thereon, and the grounds thereof. The care, maintenance and repair of the grounds specifically includes, but is not limited to, mowing and removing trash and debris as needed. 4. TERM. This Lease Agreement shall have a term of one (1) year, beginning on July 1, 2018 and ending on June 30, 2019. The University shall have an option to terminate this Lease Agreement without cause with sixty (60) days written notice to the City. This Lease Agreement may be renewed and extended for additional terms upon the mutual written agreement of the parties. 5. RETURN OF PREMISES. At the end of the term of this Lease Agreement or any extension thereto, the City agrees to surrender possession of the Leased Premises to the University, including all permanent fixtures, without demand. 6. INTERPRETATION. This Lease Agreement shall be interpreted according to and enforced under the laws of the State of Arkansas; jurisdiction and venue is Washington County, Arkansas. 7. RIGHT OF FIRST REFUSAL. During the term of this Lease Agreement and any renewals thereof, the City shall have a right of first refusal to purchase the Leased Premises upon the same terms offered by another prospective buyer within fifteen (15) days of receipt of notice from the University that an acceptable offer to purchase the property has been made to the University. 8. ENTIRE AGREEMENT. This Lease Agreement contains the entire agreement of both parties hereto regarding the Lewis Fields property. This Lease Agreement may be executed in one or more counterparts each of which shall be deemed an original but all of which together shall constitute the same instrument. IN WITNESS WHEREOF, the parties set their hands by their respective duly authorized representatives. CITY OF FAYETTEVILLE By: 6 L, �'� ao�s Date si ned BOARD OF TRUSTEES OF THE UNIVERSITY OF ARKANSAS, ACTING FOR AND ON BEHALF OF THE UNIVERSITY OF ARKANSAS SYSTEM DIVISION OF AGRICULTURE By: lie h Printed name As o L V; C i d Title A 2 Date signed ATTEST: +.�K•...L9S .� _;• City Clerk Sondra Smith G� '.c�`: �. • -P ii KA �,'''lNii This Lease Agreement was updated. LEASE AGREEMENT This LEAV AGREEMENT is entered into between the City of Fayetteville, Arka Pgas (the "City"), an Arkansas nicipal corporation, and the Board of Trustees of the University/of Arkansas acting for and on behalf of tke University of Arkansas System Division of Agriculture (h einafter the "University"). Whereas, the Univ sity owns certain property known as Lewis Fieldsear Mt. Comfort Road and Lewis Avenue in Fayetteville, Arkansas which was previously leased to the ity for recreational purposes and parking lots, for a 25 yea eriod through a Joint Lease Agreemen hat expired on June 30, 2018;and Whereas, the prior lease has ex 'red, but the parties desire enter into this new Lease Agreement to allow the City to use the Lewis Fie s property for recreati na I purposes for a period of one year, beginning July 1, 2018 and running t ough June 30, 20 0. NOW THEREFORE, in consideration of the N,,tutual pr raises of the parties contained herein, the best interest of the public, and other good and va abl consideration, the -parties agree as follows: 1. LEASED PREMISES. \\ The University hereby leases the pr erty known as Lewis Fields ("Leased Premises") to the City (that being the same property des rihed in numbered Paragraph 1 of the Joint Lease Agreement of June 29, 1993), which is situa din Fayetteville;\Washington County, Arkansas, and more specifically described below: \ The Northwest Quarter (N %) of the Northeast Quarter (NE Y4) of Section Eight (8) in Township Sixteen (16) North, Rang hirty (30) West of the 5th Principal; Meridian, less twelve and one-half (12 %) acres of equal wi th off the East side of said 40 acre tract; and less and except easements of record, containing enty-seven and one half (27 %) acres more,,or less, all in Washington County, Arkansas. 2. STRUCTURES. The City shall b responsible for the care, maintenance, and repair of all structures and parking lots located o the Leased Premises during the term of the lease, and the City shall not construct any additio I permanent structures or parking lots on the Leased Premises without the prior written ap roval of the University. 3. RENT. In Y of any monetary rent, as consideration for the use of the Leased Premises the City (at its sol cost and expense) shall maintain the Leased Premises in good condition, including the care, m intenance, and repair of the structures and parking lots thereon, and the grounds thereof. e care, maintenance and repair of the grounds specifically includes, but is not limited to, mowing and removing trash and debris as needed. Tliis Lease Agreennent was updated. 4. TERM. This Lease Agreement shall have a term of one (1) year, begin June 30, 2019. The University shall have an option to termina cause with sixty (60) days written notice to the City. This Leas extended for additional terms upon the mutual written agre 5. R URN OF PREMISES. n9 on July 1, 2018 and ending on his Lease Agreement without Agreement may be renewed and ent of the parties. At th nd of the term of this Lease Agreement or any tension thereto, the City agrees to surrende possession of the Leased Premises to the U iversity, including all permanent fixtures, without de and. 6. INTERPRETA�i N. This Lease Agre ent shall be interpreted actor ing to and enforced under the laws of the State of Arkansas; �,riA ction and venue is Wa ington County, Arkansas. 7. ENTIRE AGREEMENT. Thisease Agreeme t contains the entire agreement of both parties hereto regarding the Lewis Nelds proper, y. This Lease Agreement may be executed in one or more counterparts each of wh h shall be deemed an original but all of which together shall constitute the same instrument. 7 IN WITNESS WHEREOF, the parties set t eir han's by their respective duly authorized representatives. CITY OF FAYETTEVILLE BOARD OF TRUSTEES OF THE UNIVERSITY OF ARKANSAS, ACTING FOR AND ON BEHALF OF E UNIVERSITY OF ARKANSAS SYSTEM Dt ISION OF AGRICULTURE By: Lioneld D. Jordan, ayor Date signed ATTEST: By: - City Sondra Smith By: Printed name Title Date signed