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HomeMy WebLinkAboutR88-150COUNTRY CLUB LEASE O84 RESOLUTION NO. R88-150 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLAINVIEW, TEXAS AUTHORIZING THE MAYOR TO EXECUTE A MEMORANDUM OF AGREEMENT AND LEASE WITH THE PLAINVI~W COUNTRY CLUB. WHEREAS, this Memorandum of Agreement and Lease is proposed between the City and the Plainview Municipal Country Club for a period of 30 years; and WHEREAS, the City is the owner of said property; and WHEREAS, the Country Club has constructed upon said property a Club House, Swimming Pool, Pro-Shop and 18 hole golf course, with irrigation lines and irrigation wells and other facilities, all paid for out of the funds belonging to the Club; and WHEREAS, it is mutually desirable to both parties to enter into said agreement and lease concerning said property; and WHEREAS, the lease is attached and made a permanent part of this Resolution. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Plainview, Texas that the Mayor is authorized to execute the attached Memorandum of Agreement and Lease with the Plainview Country Club. I Carla J. Reese, City Secretary for the City of Plainview, hereby certify that the above Resolution was adopted by the Plainview City Council on May 24, 1988. ~ se] ~ity Secretary Carla J. ~ 085 CITY OF PLAINVIEW AND PLAINVIEW COUNTRY CLUB MEMORANDUM OF AGI~R~Vf AND T.RASF ARTICLE I. Section 1.01 Section 1.02 Term and Option to Renew Membership ARTICLE II. Section 2.01 Section 2.02 Rental Value Received ARTICLE III. Section 3.01 Section 3.02 Section 3.03 Section 3.04 Section 3%05 Section 3.06 Hold Harmless Insurance Employees Public Rights and Green Fees Acknowledgements Financial Statement ARTICLE IV. Section 4.01 Section 4.02 Section 4.03 Default Assignment Compliance with Laws 086 STATE OF TEXAS COUNTY OF HALE. MEMORANDUM OF AGREEMENT AND LEASE THIS MEMORANDUM OF AGREEMENT AND LEASE entered into by and between the CITY OF PLAINVIEW, hereinafter called "CITY" or "LEASOR", acting by its Mayor, duly authorized by resolution adopted by the City Council, and the PLAINVIEW MUNICIPAL COUNTRY CLUB, hereinafter called "CLUB" or "LEASEE", an organization acting herein by Bill Quattlebaum, President, hereunto duly authorized by resolution of the Board of Directors of said club. WHEREAS, the City is the owner of the following described property: Ail of that certain tract or tracts of land described as First Tract, Second Tract, and Third Tract in Warranty Deed dated the 19th day of February, 1943, from Milton Poll and wife, Margaret J. Pool, to the City of Plainview, and recorded in Volume 146, page 482, Deed Records of Hale County, Texas; Ail of that certain tract of land described in Warranty Deed from E.E. Slaughter and wife, Della Slaughter, to the City of Plainview, dated the 14th day of July, 1951, and recorded in Volume 218, page 521, Deed Records of Hale County, Texas; Ail of that certain tract of land described in Warranty Deed from J.D. Spann and wife, Vera Spann to the City of Plainview, dated December 3, 1968, and recorded in Volume 510, page 543, Deed Records of Hale County, Texas. To all of .which deed reference is here made for a full description of said premises and for all pertinent purposes; Together with all permanent improvements situated on above described premises; and 1 of 8 087 WHEREAS, the Club has constructed upon the described tracts a club house, swimming pool, pro-shop, and an 18 hole golf course, with irrigation lines and irrigation wells, and other facilities, all paid for out of the funds belonging to the Club; and WHEREAS, it is mutually desirable to both parties to enter into an agreement concerning the aforementioned property: W I TN E S S E TH: ARTICLE I. Section 1.01. Term And Option To Renew. (a) That the City does hereby lease, let and rent the above described tracts to the Club for a period of thirty (30) years from the date hereof, and with an option to.renew the lease for an additional thirty (30) years on the same terms, conditions and rentals as herein provided. No action shall be necessary on the part of the Club to renew the lease. However, if Club does not wish to renew it shall notify City at 30 days prior to the expiration primary term. (b) To constitute effective notice of an intention not to exercise the option under this lease, the notice must be sent by certified mail 'to City Manager, City of Plainview at P.O. Box 1870, Plainview, Texas 79073 and postmarked not later than the date called for by Section 1.01 (a). 2 of 8 Section 1.02. Membership Rights. 088 It is expressly provided that the membership of the club shall have the right of first refusal in negotiating a new lease, if the Club were to default or chose not to take the second thirty year option. ARTICLE II. Section 2.01. Rental. As rental and as consideration enduring to the City Plainview for this lease, the Club agrees to: (a) maintain that portion of the premises used as a golf course, of (b) to pay any and all cost and expense of maintaining the same as a golf course, (c) to pay for any and all improvements thereon, and the costs and expenses of maintaining same, (d) to pay any and all expense of building material, expenses for'labor or other operating costs, (e) to hold the same open to the general public as a golf course, that is, to permit the general public to use same and to play golf on same. 3 of 8 089 Section 2.02. Value Received. In this connection, it is estimated by and between the parties hereto that the cost of maintaining said golf course, keeping the greens in good condition, cutting grass, paying for the salary of employees, including manager of the golf course and incidental expenses to the golf course is at least-L and approximately $30,000.00 per year, over and above green fees collected, thereby placing as a monetary value enduring to the City of Plainview for use of same to the general public as a golf course in an amount in excess of $100.00 per acre per year, which is agreed would be a reasonable monetary sum if paid in cash to the City for this lease. ARTICLE III. Section 3.01. Hold Harmless. Club shall save City harmless from any loss, cost or damage that may arise out of or in connection with this lease or the use of the leased premises by the Club, its agents, employees or servants or any other person using said premises. 4 of 8 Section 3.02. Insurance. 090 (a) Ail improvements, including fixtures and furnishings are the property of the City of Plainview. Excluding inventory merchandise belonging to the Club professional. Lessee shall, at its own expense, during the term of this lease keep all buildings, structures, improvements, fixtures, equipment, and merchandise on the leased land insured, to 80% of its replacement cost. (b) The insurance is to be carried by one or more insurance companies licensed to do business in Texas and approved by Lessor. (c) The policy shall provide that any proceeds for loss or damage to buildings, structures, or improvements, shall be payable solely to City, and that any proceeds payable for loss or damage to fixtures, equipment, or merchandise of Lessee shall be payable solely to City. Club would have the option to re-build or replace any improvements with all insurance proceeds received. (d) Lessee, at its own expense, shall provide and maintain in force during the term of this lease liability insurance in an amount not less than the statutory limits of liability for a municipality as such are set forth in the Civil Practice and Remedies Code, V.A.T.S., covering Lessor as well as Lessee, with one or more insurance company's authorized to transact business in Texas and approved by Lessor. (e) Lessee shall furnish Lessor with Certificates of all insurance required by this Article within thirty days of obtaining such insurance. (f) If at any time during the term of this. lease, Lessee allows any insurance required under this Article to lapse Lessor 5 of 8 may, at its option, pay the premiums on the necessary insurance to comply with Lessee obligations under the provisions of this Article or t~rminate the lease. In the event lessor pays the premiums, Lessor may require Lessee to reimburse Lessor immediately, and if such reimbursement does not occur immediately, Lessor may terminate the lease. 09i Section 3.03. Employees. The Club agrees to hire all help and employees necessary to operate said Club, and to pay their salaries and wages, and further agrees to carry Workman's Compensation on all such employees engaged by the Club in its operations. Section 3.04. Public Rights and Green Fees. It is agreed that the general public shall have the same and equal rights to the use of the golf course as any country club member upon payment of the established green fee. Club agrees not to seu green fees arbitrarily or at such an unreasonable high rate as to discourage the general public from enjoyment of the golf course. 6 of 8 Section 3.05. Acknowledgement. o9'2 The Club represents, and the City acknowledges, that the Club has sole con%rol and operation of the golf course and its facilities since the date of the above deeds. This lease contract is made and entered into for the purpose of putting in writing the conditions and method by which said Club has operated during the past. Section 3.06. Financial Statement. Club shall make available upon request of the City all records pertaining to the financial operation of the Club. In addition, Club shall provide to the City an annual financial report. The form and substance of said report shall be in a manner generally accepted by accounting professionals for an annual financial report. ARTICLE IV. Section 4.01. Default. In the event the Club should fail or neglect to pay all its bills and costs in connection with the operation of said Club, or to pay the insurance premiums or violates any of the provisions of this lease, then the City shall have the right and option to declare this lease null and void, and possession of the premises leased hereby shall in such event be delivered to the City of Plainview. 7 of 8 Section 4.02. Assignment. 093 Neither the leased premises nor any portion thereof shall be sublet, nor shall this lease or any interest herein be assigned by Club without the written consent of the City. Section 4.03. Compliance with Law. Club agrees to comply with all laws, ordinances, rules and regulations which may pertain or apply to the leased premises and the use thereof. MayEXECUTED, 1988IN DUPLICATE ORIGINALS, This 24th day of ATTEST: CARLA J. ~eese, City Secretary CITY OF PLAINVIEW E.V. RIDLEHUBER, Mayor PLAINVIEW MUNICIPAL COUNTRY CLUB ~~~~ aa~um,~Pr esident 8 of 8 CITY OF pLATNVIEW AND pLATNVIEW COUNTRY CLUB MEMORANDUM OF AGRRR~qT AND LEASE ARTICLE I. Section 1.01 Section 1.02 Term and option to Renew Membership ARTICLE II. Section 2.01 Section 2.02 Rental Value Received ARTICLE III. Section 3.01 Section 3.02 Section 3.03 Section 3.04 Section 3.05 Section 3.06 Hold Harmless Insurance Employees Public Rights Acknowledgements Financial Statement ARTICLE IV. Section-4.01 Section 4.02 Section 4.03 Default Assignment Compliance 'with Laws STATE OF TEXAS COUNTY OF HALE 5TH DRAFT: MEMORANDUM OF AGREEMENT AND LEASE 1-25-88 THIS MEMORANDUM OF AGREEMENT AND LEASE entered into by and between the CITY OF PLAINVIEW, hereinafter called "CITY" or "LEASOR", acting by its Mayor, duly authorized by resolution adopted by the City Council, and the PLAINVIEW MUNICIPAL COUNTRY CLUB, hereinafter called "CLUB" or "LEASEE", an organization acting herein by Bill Quattlebaum, President, hereunto duly authorized by resolution of the Board of Directors of said club. W~F. REAS, the City is the owner of the following described property: All of that certain tract or tracts of land described as First Tract, Second Tract, and Third Tract in Warranty Deed dated the 19th day of February, 1943, from Milton Poll and wife, Margaret J. Pool, to the City of Plainview, and recorded in Volume 146, page 482, Deed Records of Hale County, Texas; Ail of that certain tract of land described in Warranty Deed from E.E. Slaughter and wife, Della Slaughter, to the City of Plainview, dated the 14th day of July, 1951, and recorded in Volume 218, page 521, Deed Records of Hale County, Texas; All of that certain tract of land described in Warranty Deed from J.D. Spann and wife, Vera Spann to the City of Plainview, dated December 3, 1968, and recorded in Volume 510, page 543, Deed Records of Hale County, Texas. To all of which deed reference is here made for a full description of said premises and for all pertinent purposes; Together with all permanent improvements situated on above described premises; and 1 of 8 WHEREAS, the Club has constructed upon the described tracts a club house, swimming pool, pro-shop, and an 18 hole golf course, with irrigation lines and irrigation wells, and other facilities, all paid for out of the funds belonging to the Club; and WHEREAS, it is mutually desirable to both parties to enter into an agreement concerning the aforementioned property: W I TN E S SETH: ARTICLE I. Section 1.01. Term And Option To Renew. (a) That the City does hereby lease, let and rent the above described tracts to the Club for a period of thirty (30) years from the date hereof, and with an option to renew the lease for an additional thirty (30) years on the same terms, conditions and rentals as herein provided. No action shall be necessary on the part of the Club to renew the lease. However, if Club does not wish to renew it shall notify City at 30 days prior to the expiration primary term. (b) To constitute effective notice of an intention not to exercise the option under this lease, the notice must be sent by certified mail to City Manager, City of Plainview at P.O. Box 1870, Plainview, Texas 79073 and postmarked not later than the date called for by Section 1.01 (a). 2 of 8 Section 1.02. Membership Rights. It is expressly provided that the membership of the club shall have the right of first refusal in negotiating a new lease, if the Club were to default or chose not to take the second thirty year option. ARTICLE II. Section 2.01. Rental. As rental and as consideration enduring to the City of Plainview for this lease, the Club agrees to: (a) maintain that portion of the premises used as a golf course, (b) to pay any and all cost and expense of maintaining the same as a golf course, (c) to pay for any and all improvements thereon, and the costs and expenses of maintaining same, (d) to pay any and all expense of building material, expenses for labor or other operating costs, (e) to hold the same open to the general public as a golf course, that is, to permit the general public to use same and to play golf on same. 3 of 8 Section 2.02. Value Received, In this connection, it is estimated by and between the parties hereto that the cost of maintaining said golf course, keeping the greens in good condition, cutting grass, paying for the salary of employees, including manager of the golf course and incidental expenses to the golf course is at least and approximately $30,000.00 per year, over and above green fees collected, thereby placing as a monetary value enduring to the City of Plainview for use of same to the general public as a golf course in an amount in excess of $100.00 per acre per year, which is agreed would be a reasonable monetary sum if paid in cash to the City for this lease. ARTICLE III. Section 3.01. Hold Harmless. Club shall save City harmless from any loss, cost or damage that may arise out of or in connection with this lease or the use of the leased premises by the Club, its agents, employees or servants or any other person using said premises. 4 o~ 8 Section 3.02. Insurance. (a) Ail improvements, including fixtures and furnishings are the property of the City of Plainview. Excluding inventory merchandise belonging to the Club professional. Lessee shall, at its own expense, during the term of this lease keep all buildings, structures, improvements, fixtures, equipment, and merchandise on the leased land insured, to 80% of its replacement cost. (b) The insurance is to be carried by one or more insurance companies licensed to do business in Texas and approved by Lessor. (c) The policy shall provide that any proceeds for loss or damage to buildings, structures, or improvements, shall be payable solely to City, and that any proceeds payable for loss or damage to fixtures, equipment, or merchandise of Lessee shall be payable solely to City. Club would have the option to re-build or replace any improvements with all insurance proceeds received. (d) Lessee, at its own expense, shall provide and maintain in force during the term of this lease liability insurance in an amount not' less than the statutory limits of liability for a municipality as such are set forth in the Civil Practice and Remedies Code, V.A.T.S., covering Lessor as well as Lessee, with one or more insurance company's authorized to transact business in Texas and approved by Lessor. (e) Lessee shall furnish Lessor with Certificates of all insurance required by this Article within thirty days of obtaining such insurance. (f) If at any time during the term of this lease, Lessee allows any insurance required under this Article to lapse Lessor 5 of 8 may, at its option, pay the premiums on the necessary insurance to comply with Lessee obligations under the provisions of this Article or terminate the lease. In the event lessor pays the premiums, Lessor may require Lessee to reimburse Lessor immediately, and if such reimbursement does not occur immediately, Lessor may terminate the lease. Section 3.03. Employees. The Club agrees to hire all help and employees necessary to operate said Club, and to pay their salaries and wages, and further agrees to carry Workman's Compensation on all such employe~s engaged by the Club in its operations. Section 3.04. Public Rights. It is agreed that the general public shall have the same and equal rights to the use of the golf course as any country club member. Section 3.05. Acknowledgement- The Club represents, and the City acknowledges, that the Club has sole control and operation of the golf course and its facilities since the date of the above deeds. This lease contract is made and entered into for the purpose of putting in writing the conditions and method by which said Club has operated during the past. 6 of 8 Section 3.06. Financial Statement. Club shall make available upon request of the City all records pertaining to the financial operation of the Club. In addition, Club shall provide to the City an annual financial report. The form and substance of said report shall be in a manner generally accepted by accounting professionals for an annual financial report. ARTICLE IV. Section 4.01. Default. In the event the Club should fail or neglect to pay all its bills and costs in connection with the operation of said Club, or to pay the insurance premiums or violates any of the provisions of this lease, then the City shall have the right and option to declare this lease null and void, and possession of the premises leased hereby shall in such event be delivered to the City of Plainview. Section 4.02. Assignment. Neither the leased premises nor any portion thereof shall be sublet, nor shall this lease or any interest herein be assigned by Club without the written consent of the City. 7 of 8 Section 4.03. Compliance with Law. Club agrees to comply with all laws, ordinances, rules and regulations which may pertain or apply to the leased premises and the use thereof. EXECUTED IN DUPLICATE ORIGINALS, This day of , 1988 ATTEST: CITY OF PLAINVIEW CARLA J. Reese, City Secretary E.V. RIDLEHUBER, Mayor PLAINVIEW MUNICIPAL COUNTRY CLUB Bill Quattlebaum, President 8 of 8