13 - Event Center - Waiver of RentNo. 13
Memorandum
TO: Mayor, Mayor Pro Tem & City Council
FROM: Grayson Path, City Manager
SUBJECT: Event Center
Waiver of Rent
DATE: June 13, 2022
BACKGROUND:
On July 22, 2019, the City and Supreme All, Inc., working through Ms. Samantha Hughes, entered
into a lease agreement for the City's Event Center, located at 1875 Fitzhugh Avenue (northeast
corner of the Fairgrounds). The terms of the lease are summarized as:
1. Rent: $1,200.00/month
2. Three years, August 1, 2019 — July 31, 2022 with auto renewal for two additional years
unless notice is provided by either party by April 30, 2022.
3. Use and maintain for meal services and other related activities, including preparing,
packaging, and serving food.
4. Tenant shall be responsible for maintenance of facility and parking area.
The lease is attached to this memo for the City Council's information.
The tenant's primary use of the building was its kitchen facility in order to prepare meals for the
Boys and Girls Club. Each day of the work week, Supreme All, Inc. prepares a dinner meal for
the youth who attend the Boys and Girls Club. Speaking with Jason Machice, Executive Director
for the Boys and Girls Club, Supreme All, Inc. has provided a needed service that cannot be easily
replaced.
STATUS OF ISSUE:
During the school year, the youth attend school during the day who supplies their lunch, and then
they attend the Boys and Girls Club in the evening with Supreme All, Inc. providing their dinner.
The Boys and Girls Club, under their state regulations, can only have one vendor provide them
with food services on any given day. Given the school was taking care of the youth at the school
for lunch, this allowed Supreme All, Inc. to take care of dinner at the Boys and Girls Club facility
in the evening.
School has ended for summer break and the school will now be providing the youth a meal for
lunch at the Boys and Girls Club. Given the school is now delivering a meal to the Boys and Girls
Club, the state regulations disallow the Boys and Girls Club to accept food from a second source
the same day, therefore the Supreme All, Inc. is unable to provide a meal during the summer
months. During CoVid-19 the last two years, this was apparently not a problem. But according
to Director Machice, this is now being enforced starting this year.
Because of this, Supreme All, Inc.'s services are not needed June, July and August. Given they
are not providing a meal, they are not being paid by the State.
Ms. Hughes has requested that we waive her rent during these months. Once she is allowed to
begin serving meals again in late August (school back in session), she will once again receive meal
reimbursement from the State that she can renew her payment to the City.
Ms. Hughes is scheduled to be present tonight to answer any questions you might have.
BUDGET:
The rent is $1,200.00/month. If Ms. Hughes' request is granted, it would be up to $3,600.00 in
uncollected rent for June, July and August.
OPTIONS:
1. Waive the Event Center rent for June, July and August, renewing the rent beginning in
September.
2. Waive a portion of the rent during the same time period.
3. Do not waive the rent.
RECOMMENDATION:
1. Waive the Event Center rent for June, July and August, renewing the rent beginning in
September.
LEASE AGREEMENT
STATE OF TEXAS §
§ KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF LAMAR §
THIS AGREEMENT IS MADE AND ENTERED INTO this 22nd day of July 2019,
by and between the CITY OF PARIS, TEXAS, a municipal corporation, acting by and through
its city council, duly authorized, hereinafter referred to as LESSOR, and Samantha Hughes,
hereinafter referred to as LESSEE, WITNESSETH:
For and in consideration of the payment to LESSOR, of the sum of One thousand two
hundred and no/100 Dollars ($1,200.00) per month, and other good and valuable consideration,
LESSOR does hereby lease, rent, and. let unto the LESSEE that portion of the property known as
the City of Paris Events Center, described on Exhibit A, attached hereto and made a part hereof
for all legal purposes, hereinafter referred to as PREMISES.
LESSEE hereby leases said real property from LESSOR subject to the terms, covenants,
and conditions stated below, and shall have the right and privilege to construct and maintain
certain improvements of said property. LESSEE accepts property "as is."
Except to the extent provided herein and subject to the provisions hereof, LESSEE shall
have and hold the leased premises, together with all rights, privileges, easements, appurtenances,
and immunities belonging to or in any way appertaining to said leased premises, including, but
not limited to, any and all easements, rights, title and privileges of LESSOR now or hereafter
existing in, to, or under said leased premises.
IN CONSIDERATION WHEREOF, it is mutually agreed by and between LESSOR
and LESEE:
1. LESSEE will use and maintain the described PREMISES for meal services and
other related activities, including preparing, packaging, and serving food, subject to the
requirements specified herein.
2. That the initial term of this Lease'shall be for three (3) years, beginning on the I'
day of August, 2019 and ending on the 31St day of July, 2022; provided, however, that this Lease
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shall be extended and automatically renewed for an additional two (2) year term, unless either
party to the agreement provides written notice to the other party of intent to terminate said Lease,
said notice to be provided by or before April 30, 2022. In the event an automatic renewal is
extended, this Lease shall have a final termination date of the July 31, 2024.
3. LESSEE shall, at its sole cost and expense at all times during the term of this
Lease: Keep and maintain property and facilities in good condition and repair, and make good to
LESSOR any and all injuries and damages to the same caused by LESSEE or those under her;
Comply with all fire, building, and property maintenance codes and zoning regulations now in
force, or that may be hereafter enacted with regard to the use of the center premises; Maintain
roofs and walls free from leaks and damage; Maintain parking area in stable, workable condition,
reasonably free from holes and standing water; and Maintain property clear of clutter and junk.
4. LESSEE will, upon the expiration of this Lease, peaceably yield up to LESSOR
all and singular the premises and all future erections, additions, or repairs to or upon same, if
any, in good repair, including but not limited to the hangar building and any permanent
installation of equipment and fixtures.
5. LESSEE shall take every reasonable effort and accommodation to ensure
accessibility to the LCC facilities by persons with disabilities.
6. In the event LESSEE fails to comply with this paragraph, LESSOR may notify
LESSEE in writing that such maintenance shall be done, and in the event that LESSEE fails to
correct the condition within thirty (30) days of LESSOR's written notice, LESSOR or its
authorized designee may enter the PREMISES and provide the necessary maintenance, and
LESSEE agrees to pay LESSOR such expenses within fifteen (15) days upon receipt of an
invoice. This is not to be construed as a duty or obligation of LESSOR to make any repair or
perform any work or cleaning which the LESSEE is required to make or perform.
7. LESSEE shall make no additions, changes, improvements, or modifications to
PREMISES without the prior written approval of LESSOR. In the event of such consent, all
improvements or modifications shall be made at the expense of LESSEE and, at the expiration of
this Lease, shall become the property of the City of Paris.
S. That, in addition to use of PREMISES, LESSEE shall have full access to and use
of the kitchen facilities and related equipment, as is, subject to any rules for use of same which
LESSOR may impose.
9. That LESSEE shall, at LESSEE's sole cost and expense, be responsible for
providing all furniture, furnishings, office equipment, and other similar equipage necessary to the
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use of PREMISES. That all such personal property belonging to LESSEE located on PREMISES
and/or in the improvements located thereon shall be there at the sole risk of the LESSEE.
LESSOR shall have no liability or responsibility for any theft, misappropriation, or damage to
any personal property belonging to LESSEE, any customer or other invitee of the LESSEE.
LESSEE shall remove all items of personal property from the PREMISES upon termination or
expiration of this Lease. If LESSEE fails to remove such property from PREMISES upon
termination or expiration of this Lease, then LESSOR retains the right to remove or have
removed at the expense of LESSEE all such property, and LESSEE agrees to pay LESSOR for
such expense of removal within fifteen (15) days after receipt of an invoice from LESSOR.
1.0. That LESSEE will take good care of the PREMISES and be responsible for and
make good to LESSOR for all injuries and damages to the same and will deliver same to
LESSOR at the expiration or termination of this Lease in as good condition as when leased,
ordinary wear and tear excepted; and LESSEE will, upon the expiration of this Lease, peaceably
yield up to LESSOR or the City of Paris, all and singular PREMISES and all future
modifications, additions, or repairs to or upon same, in good repair.
11. That LESSEE agrees that it will. at all times keep PREMISES clean and free of
trash and litter, and will at all times adhere to and be in strict conformance with all state and local
laws and ordinances.
12. That LESSEE shall pay or cause to be paid all charges for water, heat, gas,
electricity, sewer, trash, and all other utilities used on PREMISES throughout the term of this
Lease, including any connection fees.
13. That it shall be lawful for LESSOR*s designated representatives to enter upon and
into the PREMISES, and every part thereof, at all times for the purpose of inspecting and
examining the condition thereof.
14. That LESSEE shall not erect, paint upon, attach, exhibit or display in, on, or about
said PREMISES any sign without the prior express written consent of the LESSOR's designated
representative.
15. LESSEE COVENANTS AND AGREES TO INDEMNIFY AND DOES
HEREBY INDEMNIFY, HOLD HARMLESS AND DEFEND CITY, ITS OFFICERS,
AGENTS, SERVANTS AND EMPLOYEES, FROM AND AGAINST ANY AND ALL
CLAIMS OR SUITS FOR PROPERTY DAMAGE OR LOSS AND/OR PERSONAL INJURY,
INCLUDING DEATH, TO ANY AND ALL PERSONS, OF WHATSOEVER KIND OR
CHARACTER, WHETHER REAL OR ASSERTED (INCLUDING, WITHOUT LIMITATION,
REASONABLE FEES AND EXPENSES OF ATTORNEYS, EXPERT WITNESSES AND
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OTHER CONSULTANTS) ARISING OUT OF OR IN CONNECTION WITH, DIRECTLY OR
INDIRECTLY, THE NEGLIGENT OR OTHERWISE WRONGFUL ACTS OR OMISSIONS
OF LESSEE, ITS AGENTS, SERVANTS, CONTRACTORS, OR EMPLOYEES IN
CONNECTION WITH THIS LEASE, INCLUDING BUT NOT LIMITED TO INJURY OR
DAMAGE TO CITY PROPERTY. SUCH INDEMNITY SHALL SURVIVE THE TERM OF
THIS LEASE. THERE IS NO JOINT ENTERPRISE BETWEEN LESSOR AND LESSEE.
16. LESSEE shall maintain, during the life of Lease, and any extensions hereof,
general liability coverage with minimum limits for damages resulting from bodily injury or death
of $250,000 per person and $500,000 per occurrence, and $250,000 per occurrence for property
damage, or a combined single limit of $500,000, or in such other amounts mutually agreed upon
to fully and reasonably protect both LESSEE and LESSOR. LESSOR shall be named as an
additional insured with a waiver of subrogation in favor of LESSOR. All costs of such insurance
shall be borne by LESSEE. Such insurance policy or policies must be issued by a reputable
provider licensed to write such policies in the State of Texas.
17. With regard to all insurance required under this Lease, it is expressly provided
that such insurance policy or policies shall and must be written and issued by a reputable
insurance company or companies, with LESSOR as an additional insured, subject to approval. by
the City Attorney of the City of Paris; and LESSEE or LESSEE's insurance carrier or carriers
shall deliver a copy of any such policies to the City Clerk of the City of Paris prior to occupation
of leased premises, evidencing the fact that such insurance is in full force and effect at all times
during this Lease, and any extension hereof, and specifically noting thereon that LESSOR is an
additional insured. All such policies shall be written so that the LESSOR will be notified of
cancellation or of any restrictive amendment of the policies at least thirty (30) days prior to the
effective date of such cancellation or amendment. Notice shall be by certified mail, return
receipt requested. LESSEE agrees that if LESSEE does not keep all insurance required under
this Lease in full force and effect, LESSOR may declare this Lease, and all rights and interest
created by it, to be terminated.
18. LESSEE shall at no time permit the foreclosure of any tax liens to LESSEE's
Leasehold interest in PREMISES or the buildings, fixtures, or other improvements thereon.
LESSEE shall have the right in good faith and at its own sole cost and expense to contest any
such taxes, charges, and assessments, and shall be obligated to pay the contested amount, plus
any penalties and interest imposed, only if and when finally determined to be due. At any time
that the payment of any item of taxes, special assessments, or governmental charges which
LESSEE is obligated to pay under the provisions of this paragraph remain unpaid and
uncontested later than fifteen (15) days before the same shall become delinquent, LESSOR may
declare this Lease, and all rights and interest created by it, to be terminated.
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19. That LESSEE will not sublet PREMISES, or any part thereof, without the
consent, in writing, of LESSOR first had and obtained, in hand.
20. LESSEE, LESSEE's successors or assigns, agrees that (i) no person, on the
grounds of race, color, creed, sex, age, national origin, or disability shall be excluded from
participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of
said facilities; (ii) that, in the construction of any improvements on, over, or under such land and
the furnishing of services thereon, no person, on the grounds of race, color, creed, sex, age,
national origin, or disability shall be excluded from participation in, denied the benefits of, or
otherwise be subjected to discrimination.
21. That the following events shall be deemed to be events of default by LESSEE
under this Lease.
A. Failure of LESSEE to comply with any term, condition, or covenant of this Lease,
and such failure is not cured within thirty (30) days after written notice thereof to
LESSEE, by LESSOR.
B. Insolvency, the making of a transfer in fraud of creditors, or the making of an
assignment for the benefit of creditors by LESSEE or any guarantor of LESSEE's
obligations.
C. Filing of a petition under any section or chapter of the National Bankruptcy Act,
as amended, or under any similar law or statute of the United States or any State
thereof by LESSEE or any guarantor of LESSEE's obligations, or adjudication as
a bankrupt or insolvent in proceedings filed against LESSEE or such guarantor.
D. Appointment of a receiver or trustee for all or substantially all of the assets of
LESSEE or any guarantor of LESSEE's obligations.
E. Abandonment by LESSEE of any substantial portion of PREMISES or cessation
of use of PREMISES for the purposes leased, as identified herein above.
F. The filing of any lien against PREMISES resulting from any act or omission of
LESSEE which is not discharged or contested in good faith as determined by
LESSOR by proper legal proceedings within fifteen (15) days of receipt of actual
notice by LESSEE, unless LESSEE posts a bond within this time period equal to
the amount of the lien.
22. In the event of any default by LESSEE that is not cured within thirty (30) days of
receiving notice from LESSOR, LESSOR may, in addition to any other remedies available to it,
terminate this Lease. In addition to the termination and forfeiture right, LESSOR shall have the
following rights and remedies upon default by LESSEE:
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A. The recovery of any damages, costs, fees, and expenses incurred by LESSOR as a
result of the breach of the Lease by LESSEE, including reasonable attorneys' fees
and expenses.
B. The removal of all persons from PREMISES, and the removal and storage, at
LESSEE's expense, of all property said PREMISES.
Cm Any other right or remedy, legal or equitable, that LESSOR is entitled to and
applicable law.
23. No termination shall relieve LESSEE of the obligation to deliver and perform on
all outstanding obligations and requirements prior to the effective date of the termination and
LESSEE's liabilities under this Lease shall continue.
24, In the event of any such termination as above enumerated, LESSOR shall have
the right at once and without her notice to LESSEE to enter and take full possession of
PREMISES occupied by the LESSEE under this Lease. Upon the termination of this Lease for
any reason, LESSEE shall yield up said buildings, facilities, fixtures, and equipment to LESSOR
in the same condition as when received.
25. In the event of the failure on the part of the LESSEE upon the termination of this
Lease to immediately remove from PREMISES all property owned by it, LESSOR may effect
such removal and store such property at LESSEE"s expense. LESSEE further covenants and
agrees to pay and discharge all reasonable costs, attomey's fees, and expenses that may be
incurred by LESSOR in enforcing the covenants, conditions, and agreements of this Lease, re-
entering and/or repossessing PREMISES, restoring the same to good and proper repair/order, and
protecting all city property.
26. The failure of LESSOR to declare this Lease ten-ninated for any of the reasons set
out above shall not bar the right of LESSOR to subsequently terminate this Lease for any of the
reasons set out above.
27. That the waiver by LESSOR of any breach by LESSEE of the terms, covenants,
conditions, or provisions of this Lease shall not be deemed to be a waiver of any other breach of
the same or other term, covenant, condition, or provision of this Lease, regardless of when the
breach has occurred.
28. That, in case any one or more of the provisions contained in this Lease shall, for
any reason, be held by a Court of competent jurisdiction to be invalid, illegal, or unenforceable
in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision
of the Agreement, and this Lease shall be construed as if the invalid, illegal, or unenforceable
provision had never been included herein
M,
ATTEST:
Juice Ellis, City Clerk
APPROVED AS TO FORM:
uut�
ate hanie H. Harris, City Attorney
CITY OF PARIS, PARIS, TEXAS
By:
111, Godwin, City Manager
VJ
LESSEE
29. That this Lease Agreement constitutes the sole and only agreement of the parties
to this Lease and supersedes any prior understandings or written or oral agreements between the
parties respecting the subject matter of this Lease.
30. That no amendment, modification, or alteration of the terms of this Lease shall be
binding unless it is in writing, dated subsequent to the date of this Lease, and duly executed by
the parties to this Lease.
31. That the rights and remedies provided by this Lease are cumulative, and the use of
any one right or remedy by LESSOR shall not preclude or waive its right to use any or all other
remedies. These rights and remedies are given in addition to any other rights the LESSOR may
have by law, statute, ordinance, or otherwise.
32. That all notices required under this Lease must be given by certified mail or
registered mail, at the following addresses:
LESSEE
Attn: Samantha Hughes
627 51h Street NE
Paris, TX 75460
CITY
Attn: City Manager
P.O. Box 9037
Paris, TX 75461-9037
33. Any party may change the address to which notices are to be sent by giving the
other party notice of the new address in the manner provided in this paragraph.
34. That this Lease shall not be assignable by LESSEE without the express written
consent of the LESSOR.
35. That this Lease shall be binding upon, and inure to the benefit of, the respective
heirs, executors, administrators, legal representatives, successors, and assigns when permitted by
this Lease.
36. That this Lease shall be construed under, and in accordance with the laws of the
State of Texas, and all obligations of the parries created by this Lease are performable in Lamar
County, Texas. Venue for State court actions arising under this Lease shall be exclusively in the
courts of Lamar County, Texas; venue for federal court actions arising under this Lease shall be
exclusively in the federal courts for the Eastern District of Texas.
IN WITNESS WHEREOF, the parties hereto have executed this agreement the day and
year first above written,
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