07-V Lease of Property N. Main
DRAFT
F:kAttorneykALICEkRESWORK\CURRENTLN Main Lease Res 2003.wpd
February 6, 2003
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS,
PARIS, TEXAS, AWARDING A LEASE ON PROPERTY LOCATED ON
PART OF LOTS 6 AND 7, CITY BLOCK 251A, BEING NUMBER 1231 N.
MAIN STREET, PARIS, TEXAS; AUTHORIZING THE EXECUTION OF A
LEASE FOR SAID PROPERTY; MAKING OTHER FINDINGS AND
PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the City Council of the City of Paris did heretofore, on the 26th day of
March, 2001, in Resolution No. 2001-028, award a lease on property located on part of Lots 6
and 7, City Block 25 lA, being number 1231 North Main Street, Paris, Texas; and,
WHEREAS, the City Council did heretofore, on the 13th day of May, 2002, grant an
Exercise of Option by Allen Phillips to extend the term of the lease for a period of one (1) year,
beginning April 15, 2002, and ending April 14, 2003; and,
WHEREAS, the City Clerk received from Allen Phillips on June 14, 2002, a thirty (30)
day notice to terminate said lease, and it was deemed appropriate to advertise for bids for lease
of said property; and,
WHEREAS, the City Council did heretofore, on the 8th day of July, 2002, in Resolution
2002-112, authorize the advertisement for bids on said Lease, and it was advertised on July 21
and July 28, 2002; and,
WHEREAS, no bids were received in response to this advertisement; and,
WHEREAS, shortly thereafter, the City started receiving calls from interested parties
asking about leasing said N. Main Street property and it was deemed appropriate to advertise
again for lease of said property; and,
WHEREAS the City Council did heretofore, on the 1 lth day of November, 2002, in
Resolution No. 2002-170, again authorize the advertisement for bids for the lease of said
property, and it was advertised again on November 17 and November 24, 2002, and all parties
who expressed interest in leasing said property were contacted and notified that the property was
being advertised for lease again and where they could pick up bid packets; and,
WHEREAS, no bids were received in response to this advertisement; and,
WHEREAS, the City has now received a proposal from James McFatridge to lease said
property for an auto sales lot and such proposal is fair and reasonable to the City of Paris; and,
WHEREAS, the form of the Lease Agreement, attached hereto as Exhibit A, should, in
all things, be approved, and the Mayor should be authorized to execute the same; NOW,
THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS,
TEXAS:
Section 1. That the findings set out in the preamble to this resolution are hereby in all
things approved.
Section 2. That a proposal by James McFatridge for a lease on property located on part
of Lots 6 and 7, City Block 251 A, located on N. Main Street, in the initial amount of $3,600.00
annual rental, payable in twelve (12) equal monthly payments of $300.00 each, be, and the same
is hereby, accepted and let.
Section 3. That the form of the Lease Agreement between the City of Paris and James
McFatridge, attached hereto as Exhibit A, be, and the same is hereby, approved.
Section 4. That the Mayor be, and he is hereby, authorized and directed to execute, on
behalf of the City of Paris, the Lease Agreement with James McFatridge, under the terms and
conditions and in the form shown in Exhibit A, attached hereto.
Section 5. That this resolution shall be effective from and after its date of passage.
PASSED AND APPROVED this 10th day of February, 2003.
Michael J. Pfiester, Mayor
ATTEST:
Mattie Cunningham, City Clerk
APPROVED AS TO FORM:
Larry W. Schenk, City Attorney
LEASE AGREEMENT
COUNTY OF LAMAR }
} KNOW ALL MEN BY THESE PRESENTS:
STATE OF TEXAS }
THIS LEASE AGREEMENT is made this 10th day of'February, 2003, by and between the
CITY OF PARIS, PARIS, TEXAS, a municipal corporation, acting by and through its Mayor,
Michael J. Pfiester, duly authorized, hereinafter referred to as LES SOP,,, and JAMES McFATRIDGE,
611 14th Street N.E., Paris, Lamar County, Texas 75462, hereinafter referred to as LESSEE,
WITNESSETH
For and in consideration of' the payment of' the sum of' THREE THOUSAND SIX
HUNDRED AND NO/100 DOLLARS ($3,600.00) per year, payable to the CITY OF PARIS, a
municipal corporation, as f'ollows; $300.00 on or before February 15, 2003, with a like payment on
or before the 15th day of' each month thereafter during the remainder of'the term hereof', said CITY
OF PARIS does hereby lease, rent, and let unto JAMES McFATRIDGE that certain property located
on part of'Lots 6 and 7, City Block 25 iA, being number 1231 N. Main Street, Paris, Texas, more
fully described on Exhibit A, attached hereto and made a part hereof'.
1. TERM
The term of'this lease is for one (1) year, beginning on the 15th day of`February, 2003, and
ending on the lgth day of`February, 2004, at which time and on which date the same shall terminate,
unless sooner terminated as herein specified and provided, during which time LESSEE may and shall
occupy the same and use the same as an automobile sales lot, and for no other purpose.
It is further agreed by LESSOR and LESSEE that LESSEE shall have the option to renew
such Lease for an additional period of`one (1) year, the rental for the renewal to be in the sum of`
THREE THOUSAND SIX HUNDRED AND NO/100 DOLLARS ($3,600.00), payable to the CITY
EXHIBIT A Lease Agreement...Page 1
OF PARIS, a municipal corporation, as follows: $300.00 on or before February 15, 2004, with a like
payment on or before the 15th day of each month thereafter during the remainder of the term of the
first option, which ends February 14, 2005. The granting of said first option is subject to the
requirements set forth in paragraph 9 and the right to terminate by either party set forth in paragraph
10.
It is further agreed to by LESSOR and LESSEE that LESSEE shall have a second option to
renew such Lease for an additional period of one (1) year, the rental for the second renewal to be in
the sum of THREE THOUSAND N1NE HUNDRED AND NO/100 DOLLARS ($3,900.00), payable
to the CITY OF PARIS, a municipal corporation, as follows: $325.00 on or before Februaryl5,
2005, with a like payment on or before the 15th day of each month thereafter during the remainder
of the term of the second option, which ends February 14, 2006. The granting of said second option
is subject to the requirements set forth in paragraph 9 and the right to terminate by either party set
forth in paragraph 10.
It is further agreed to by LESSOR and LESSEE that LESSEE shall have a third option to
renew such Lease for an additional period of one (1) year, the rental for the third renewal to be in the
sum of FOUR THOUSAND TWO HUNDRED AND NO/100 DOLLARS ($4,200.00), payable to
the CITY OF PARIS, a municipal corporation, as follows: $350.00 on or before February 15, 2006,
with a like payment on or before the 15th day of each month thereafter during the remainder of the
term of the third option, which ends February 14, 2007. The granting of said third option is subject
to the requirements set forth in paragraph 9 and the right to terminate by either party set forth in
paragraph 10.
Lease Agreement...Page 2
2. RENT
That LESSEE pay to LESSOR, or order, at the City Hall in the City of Paris, the agreed
rental in advance, promptly and without neglect, default, and delay.
3. HOLD HARMLESS
That LESSEE agrees to indemnify, save, keep, and hold harmless LESSOR from and against
any and all demands, debts, liabilities, suits, claims, and causes of action of every kind and character
whatsoever for damage or injuries to persons and/or property occurring on the leased premises
resulting from LESSEE's, his invitees', agents', servants', or employees' use, and LESSOR shall not
be liable to LESSEE, his invitees, agents, servants, employees, or visitors due to the improvements
located thereon, or hereafter constructed, or any other condition of the premises being improperly
constructed, maintained, or being or becoming out of repair. LESSEE hereby waives any defects
therein and agrees to hold and save LESSOR harmless from all claims for any such damages or
injuries.
4. INSURANCE REQUIREMENTS
That LESSEE must, at all times during the term of this Agreement, and any extensions hereof,
keep and maintain in full force and effect a policy or policies of insurance, providing at least
$250,000.00 per person and $500,000.00 for any single occurrence for bodily injury or death and
$100,000.00 for any single occurrence for injury to or destruction of property, indemnifying all
persons for any and all damages, personal injuries, or property damages sustained in or upon the
premises of said leased property, or any part thereof, as the result of the negligence of LESSEE, his
invitees, agents, servants, or employees, and shall pay all premiums due thereon when due. 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
Lease Agreement...Page 3
approval by the City Attorney of the City of Paris, and LESSEE or his insurance carrier or carriers
shall deliver a copy of any such policies to the City Clerk of the City of Paris, 150 1st Street S.E.,
Paris, Texas 75460, or furnish to said City Clerk a current letter or certificate from such company or
companies, 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, addressed to
the LESSOR at the following address:
75461-9037.
City Clerk, City of Paris, P. O. Box 9037, Paris, Texas
5. WASTE, NUISANCE AND UNLAWFUL USE PROHIBITED
That LESSEE shall not commit, or suffer to be committed, any waste on the leased premises,
nor shall LESSEE maintain, commit, or permit the maintenance or commission of any nuisance on
the leased premises or use the lease premises for any unlawful purpose.
That LESSEE shall not do or permit anything to be done in or about the leased premises
which shall in any way conflict with any law, ordinance, rule or regulation affecting the occupancy
and use of the leased premises which is or may hereafter be enacted or promulgated by any public
authority; or suffer to be committed any waste on the leased premises; or allow the premises to be
used for any improper, immoral, or unlawful purpose.
6. PROPERTY CONDITION
That LESSEE will take good care of the leased premises and be responsible and make good
to LESSOR all injuries and damages to the same caused by LESSEE or those under him and will
deliver same to LESSOR at the expiration or termination of this lease in as good condition as when
Lease Agreement...Page 4
completed, usual wear and tear alone excepted; and 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, in good repair.
LESSEE shall not install, erect, or provide any device, in addition to such devises and
equipment presently located at and in use and in connection with the operation of the leased premises,
without first securing the written permission for such installation or provision from the City Manager
of the City of Paris.
7. INSPECTION
That it shall be lawful for LESSOR to enter upon and into the leased premises and every part
thereof at all times for the purpose of inspecting and examining the condition thereof.
8. ASSIGNMENT OF LEASE
That LESSEE has the right to assign this lease, only after first having received written
permission from the City Manager of the City of Paris, with such assignee having all rights, privileges,
and obligations contained in this lease.
9. DEFA[ILT
Should LESSEE default in or fail or refuse to keep any of the covenants, conditions,
stipulations, or provisions herein contained, then the LESSOR shall, in addition to any and all rights
afforded LES SOR under this lease or state law for such default, including, but not limited to, the right
to seek monetary damages for injury to the property, specific performance, or other remedies, have
the right to terminate said lease by giving the LESSEE thirty (30) days notice in writing of its
intention to terminate said lease, and LESSOR shall have the immediate right of possession to any
and all properties, improvements, or equipment thereon located, which may be disposed of by the
LESSOR as it sees fit.
Lease Agreement...Page 5
If LESSEE shall at any time abandon such leased property and premises, or shall by any
means evidence his desire or intention to cease to operate thereon an automobile sales lot, the
LESSOR may, at its option, cancel this lease by delivery of written notice of cancellation, signed by
the City Manager of the City of Paris, without liability to LESSEE, his heirs or assigns, and in such
event LESSOR shall be entitled to and may dispose of, as it may see fit, any and all improvements
or equipment located thereon.
10. TERMINATION
That either party may, at its option, terminate this lease by giving the other party thirty (30)
days notice, in writing, of its intention to terminate.
The terms of this lease are binding on and the benefits herein inure to the heirs, administrators,
and executors of LESSEE and the successors and assigns of LESSOR.
EXECUTED ON the dates shown in acknowledgments below.
CITY OF PARIS, PARIS, TEXAS
LESSOR:
By:
Michael J. Pfiester, Mayor
ATTEST:
Mattie Cunningham, City Clerk
APPROVED AS TO FORM:
Larry W. Schenk, City Attorney
Lease Agreement...Page 6
LESSEE:
James McFatridge
STATE OF TEXAS }
}
COUNTY OF LAMAR }
BEFORE ME, the undersigned authority, on this day personally appeared MICHAEL J.
PFIESTER, Mayor of the City of Paris, known to me to be the person whose name is subscribed to
the foregoing instrument, and acknowledged to me that he executed the same for the purposes and
consideration therein expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the 10th day of February,
2003.
Notary Public, State of Texas
STATE OF TEXAS }
}
COUNTY OF LAMAR }
BEFORE ME, the undersigned authority, on this day personally appeared JAMES
McFATRIDGE, known to me to be the person whose name is subscribed to the foregoing instrument,
and acknowledged to me that he executed the same for the purposes and consideration therein
expressed.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the
2003.
__ day of February,
Notary Public, State of Texas
Lease Agreement...Page 7