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Home My WebLink AboutR17-391495 RESOLUTION NO. R17-391 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLAINVIEW, TEXAS ASSIGNING AND MODIFYING A LEASE FOR THE REAL PROPERTY AT AB 500 BLK JK -2, N40 100x140 CORNER LOT, SAME BEING 501 DENVER, PLAINVIEW, TEXAS; AUTHORIZING THE MAYOR TO SIGN SAID LEASE; AND DECLARING THAT THE POLICY SERVES A PUBLIC PURPOSE. WHEREAS, the City of Plainview, Texas owns real property located at AB 500 BLK, JK -2, N40, 100x140 Corner lot, same being 501 Dep ver, located within the boundaries of the corporate city limits of the City of Plainview, Texas; and WHEREAS, JKT, LLC -Series One, a series in a Texas limited liability company, desires to lease such real property to provide personal property storage, repair and restoration of vehicles within the City of Plainview, Texas; and WHEREAS, the City Council agrees such Assignment of the McGavock Lease Agreement to JKT, LLC -Series One and the First Modification of the Lease Agreement for the lease of real property under the terms herein incorporated and attached as Exhibit "A" will provide economic development and growth within the City benefiting the citizens of the City; and WHEREAS, a public purpose and benefit does exist in leasing such real property for the economic development and growth of the City as well as their maintaining, upkeeping, operating, mowing and repairing such real property for the City of Plainview as stated in the Modification for the lease of real property; and WHEREAS, the City Council designates Mayor Wendell Dunlap as the City's authorized official to sign such Modification, and the City Manager as the City's authorized official to sign the Assignment of the original lease according to the terms of the Agreement stated herein attached and incorporated as Exhibit "B"; and WHEREAS, the City Council finds that the City's entering into the herein incorporated and attached Exhibit "A" First Modification of Lease Agreement and Exhibit "B" Assignment of Lease Agreement is in the best interest of the City and its citizens. NOW, THEREFORE, the City of Plainview hereby ordains, that: I. The City Council hereby approves the modification of the original McGavock lease for the City of Plainview real property located at AB 500 BLK, JK -2, N40, 100x140 Corner R17-391 Assignee -501 Denver-JKT, LLC Page 1 of 3 496 lot, same being 501 Denver, located within the corporate city limits of the City of Plainview, Texas according to the terms of the Lease Agreement and First Modification of Lease Agreement herein incorporated and attached as Exhibit "A." The public purpose for leasing the above-described City of Plainview real property is to promote economic development and growth of the City as well as the Lessee provide maintenance, upkeep, operations, and repairs of such property for the City of Plainview. The Mayor is hereby authorized and directed to execute on behalf of the City of Plainview the First Modification of Lease Agreement, herein incorporated and attached as Exhibit "A." IV. The City Manager is hereby authorized and directed to execute on behalf of the City of Plainview the Assignment of Lease Agreement, herein incorporated and attached as Exhibit "B." PASSED AND APPROVED this 27th day of June, 2017. ATTEST: Belinda Hinojosa, City S cr tart' APPROVED AS TO CONTENT: Jeffr , City Manager 41,// Wendell Dunlap, Mayor R17-391 Assignee -501 Denver-JKT, LLC Page 2 of 3 497 APPROVED AS TO FORM: Leslie Spear Sch idt, City Attorney R17-391 Assignee -501 Denver-JKT, LLC Page 3 of 3 498 STATE OF TEXAS COUNTY OF HALE § § § ASSIGNMENT OF LEASE AGREEMENT WHEREAS, the City of Plainview (hereinafter "City"), a Home Rule Municipality of Hale County, Texas, owner of a corner lot located in the City of Plainview, County of Hale, State of Texas (hereinafter "Property"), as Lessor, entered into a Lease Agreement with McGavock, Inc., a Texas Corporation (hereinafter "Assignor"), on January 30, 2015 (hereinafter "Lease Agreement"). The Property is described in the Lease Agreement as real property located at 501 Denver, Plainview, Texas and more particularly described as AB 500 Blk JK -2, N40 100x140 corner lot as is described and illustrated in Exhibit "A", which is attached to the Lease Agreement. A copy of the Lease Agreement is attached hereto as Exhibit "1" and made part hereof by reference; WHEREAS, Assignor now desires to fully and completely assign and transfer any and all of its rights and interests in the Lease Agreement to 'KT, LLC -Series One, a series in a Texas limited liability company (hereinafter "Assignee") together with all the rights, title, and interest in and to the Lease Agreement and Property, subject to all the conditions and terms contained in the Lease Agreement; WHEREAS, Article XI, Paragraph H of the Lease Agreement prohibits the assignment of the Lease Agreement without the prior written consent of the City Manager of the City and Assignor and Assignee have requested that City consent to the assignment described above; and WHEREAS, City has determined that such assignment by Assignor to Assignee is not inconsistent with existing City policies. NOW, THEREFORE, the undersigned hereby contract, agree and stipulate as follows: 1. For value received, Assignor assigns and transfers to Assignee the Lease Agreement together with all of its rights title and interest in and to the Lease Agreement and Property, subject to all the conditions and terms contained in the Lease Agreement. 2. Assignee agrees to pay all rent due after the effective date of this Assignment and to assume and perform all duties and obligations required by the terms of the Lease Agreement. • 3. The City and Assignee hereby agree that Assignor is hereby released from any and all liability and/or responsibility for any and all duties and obligations under the Lease Agreement, including, but not limited to the payment of rent to the City. 4. The City hereby consents to the assignment of the Lease Agreement by Assignor to Assignee. EXECUTED THE EFFECTIVE DATE OF 0 -111 -tut- , 2017. AGREED AND APPROVED: CITY: CITY 0 PL ;W, TEXAS By: M Print= • - .'e: ,�1 el Slier Title: City Manager ASSIGNOR: McGAVOCK, INC., a Texas Corporation ASSIGNEE: STATE OF TEXAS § COUNTY OF HALE § By: SfevdMcGavock, Presideo JKT, LLC -Series One, a series in a Texas limited liability compan Bv• G Kelvin Tipton, M. u = :er This instrument was acknowledged before me on `'2f -11 , 2017, by JGf* S'"54' the City Manager of the City of Plainview, Texas on behalf of id municipality. Notary Public, State of Te BELINDA HINOJOSA NOTARY PUBLIC STATE OF TEXAS ID # 644426-1 My Comm. Expires 04-28-2021 § COUNTY OF LUBBOCK § This instrument was acknowledged before me on , 2017, by Steve McGavock, President of McGavock, Inc., a Texas Corporation the City Manager of the City of Plainview, Texas on behalf of said company. Notary Public, State of Texas 2 499 500 STATE OF TEXAS COUNTY OF HALE This instrument was acknowledged before me on 5..:4A4 ' ' , 2017, by Kelvin Tipton, a Manager of JKT, LLC -Series One, a series in a Texas limited habil' company, on behalf of said company. RUDD F. OWEN NOTARY PUBLIC STATE OF TEXAS ID # 7196090 Comm. E • 09.131017 Notary Public, State of Texas EXECUTED THE EFFECTIVE DATE OF TI- , 2017. AGREED AND APPROVED: CITY: CITY OF PLAINVIEW, TEXAS ASSIGNOR: By� Printed Name: Title: City Manager McGAVOCK, INC., a Texas Corporation By: Ste MeGavock, President ASSIGNEE: JKT, LLC -Series One, a aeries in a Texas limited liability company STATE OF TEXAS COUNTY OF HALE $ $ Kelvin Tipton, Manager This instrument was acknowledged before me on 2017, by the City Manager of the City of Plainview, Texas on behalf of said municipality. STATE OF TEXAS COUNTY OF LUBBOCK $ $ Notary Public, State of Texan This instrument was acknowledged before me on'ILNCA , 2017, by Steve MCGavock, President of McGavock, Inc., a Texas Corporation the City Manager of the City of PIainview, Texas on behalf of said company. KATHY CUMMINGS Notary Punic. State of Texas Comm. Expkes 17.01-2020 Notar ID S422011 This page was intentionally left blank 8 C FIRST MODIFICATION OF LEASE This supplemental agreement is entered into between the City of Plainview., a Home Rule Municipality of Hale County, Texas ("Lessor"), and JKT, LLC - Series One, a series in a Texas limited liability company ("Lessee"). Recitals A. Lessor and McGavock, Inc. entered into a Lease Agreement on January 30, 2015, for the premises commonly known as a 501 Denver, Plainview, Texas. The Lease Agreement is referred to herein as the "Lease." The Lease is referred to and incorporated by reference. McGavock, Inc. has assigned its interest in the Lease to Lessee. B. Lessor and Lessee wish to modify the Lease as provided below. THE PARTIES THEREFORE AGREE AS FOLLOWS: 1. The Lessee shall not be required to maintain the parts of the leased premises consisting of the culvert and the part west of the culvert beyond mowing same as needed. 2. ARTICLE TWO TERM is replaced with the following: The remaining initial term of this lease will terminate on January 31, 2027. Upon written application from Lessee delivered to the office of the City Manager at least ninety days prior to the expiration of the initial term, Lessee may extend this Lease for up to two (2) subsequent four year terms upon the same terms and conditions contained herein, provided, however, that the annual rent shall increase as provided in Article Four. 3. ARTICLE THREE USE OF PROPERTY of the Lease is modified to allow personal property storage, repair and restoration as the purpose of Lessee's use. 4. Under ARTICLE FOUR A. RENTAL, rent shall be due and payable annually as follows: March 1, 2018 $500.00 March 1, 2019 $500.00 March 1, 2020- March 1, 2024 $600.00 March 1, 2025 to March 1, 2026 $720.00 First four year renewal March 1, 2027 to March 1, 2029 March 1, 2030 $720.00 $864.00 Second four year renewal March 1, 2031 to March 1, 2034 $864.00 T:\Tammy\WPDATA\Kelvin Tipton\First Modification Lease.(5.17.17).wpd Pagel of 2 force. 5. The last sentence of ARTICLE SIX D UTILITIES is clarified to mean that such notice to the City is required only if Lessee's activities require one or more enhanced utilities connections in excess of that currently servicing the Lease Premises. 6. ARTICLE SIX E of the Lease is deleted, and the following substituted: At the expiration or termination of this Lease for any reason, Lessee shall surrender to City the Property, remove all personal property belonging to Lessee's operations, and shall restore the Property to substantially the same condition existing on the date of this First Modification of Lease, except for (i) ordinary wear and tear; and (ii) Lessee shall not be required to remove the building and foundation, which the parties agree constitute personal property. Personal property for Lessee's operations left on the Property after sixty (60) days from the expiration or termination of the Lease shall be deemed abandoned and shall be subject to removal and disposal by City. 7. ARTICLE SIX I of the Lease is amended to the extent that the only required insurance of Lessee is General Liability in accordance with the provisions of that section. 8. The following is added to ARTICLE SEVEN of the Lease: City shall have the right to terminate this Lease at any time upon one (1) year prior notice to Lessee (unless shorter notice is required to protect the health, safety, and welfare of the citizens of City) only if such termination is required to include the Leased Premises to expand the drainage culvert west of the Leased Premises based upon the recommendation of City's architects and engineers in order to protect the health, safety and welfare of the citizens of City. 9. Lessee's address and contact numbers for the purposes of notice in ARTICLE EIGHT E of the Lease is amended as follows: JKT, LLC - Series One attention Kelvin Tipton, Manager 811 W. 11t Street, Plainview, Texas 79072; home number (806) 296-7960; cell number (806) 292-7441. IN GENERAL 1. Except for the modifications made above, all provisions of the Lease will continue in full 2. This modification will become effective on June 28, 2017. JKT, LLC- Series One LESSEE By: elvin Tipton, Nffnager T:\Tammy\WPDATA Kelvin Tipton\First Modification Lease.(5 17.17) wpd City of Plainview LESSOR Bv: unlap, Mayor Page 2 of 2