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Item 4B M E M O R A N D U M June 10, 2008 To: Shana Yelverton, City Manager From: Chris Tribble, Interim Director of Community Services Subject: Approve a lease agreement for grazing on approximately 4.5 acres of undeveloped City park property Action Requested: City Council approval of a lease agreement with Mr. and Mrs. William Ihnfeldt to allow grazing on approximately 4.5 acres of undeveloped parkland located at Lonesome Dove Road and Fox Fire Lane. Background Information: The City of Southlake presently owns approximately four and one-half (4.5) acres of undeveloped park land along the southeast corner of Lonesome Dove Ave. and Foxfire Lane (typically referred to as the Coker property). The land is primarily covered in grass and was purchased for future park access to the adjoining U.S. Army Corps of Engineers property. Grazing on the undeveloped land provides a cost effective method of maintaining the property without utilizing staff time or City supplies and equipment. The proposed lease renewal would be for a two-year period with the opportunity to terminate at any time with sixty days written notice. The present tenants (Mr. and Mrs. William Ihnfeldt) would be responsible for accepting the property in its present condition, mowing and maintaining the premises in a good, safe condition, and vacating the premises upon termination of the lease. Financial Consideration: There is no direct financial consideration resulting from this request. Financial Impact: The City saves the cost of mowing and maintaining approximately 4.5 acres of undeveloped land during the course of the lease. Savings would be realized in staff time (2 staff) estimated at one and one-half hours per mowing, plus drive time, and reduced impact on equipment and Shana Yelverton, City Manager City Council Meeting Date – June 17, 2008 Page 2 of 10 supplies for approximately twelve mowings per year. Estimated cost savings is approximately $2,000 annually. Citizen Input/ Board Review: Park Board reviewed at their June 9, 2008 meeting and recommended approved (7-0). Legal Review: The lease has been reviewed by the City Attorney. Alternatives: Alternatives may include: City Council approval as presented  City Council approval with modifications  City Council non-approval of proposed lease  agreement Supporting Documents: Supporting documents include: Proposed lease agreement  Staff Recommendation: City Council approval of a lease agreement with Mr. and Mrs. William Ihnfeldt to allow grazing on approximately 4.5 acres of undeveloped parkland located at Lonesome Dove Road and Fox Fire Lane. Shana Yelverton, City Manager City Council Meeting Date – June 17, 2008 Page 3 of 10 LEASE BETWEEN CITY OF SOUTHLAKE AND WILLIAM AND PEGGY IHNFELDT I. Terms and Definitions Date: July 31, 2008 Landlord: City of Southlake Landlord’s Address: 1400 Main Street, Suite 270 Southlake, Texas 76092 Tenant: William and Peggy Ihnfeldt Tenant’s Address: 2303 Lonesome Dove Road Southlake, Texas 76092 Premises: Approximately four and one-half (4.5) acres, located in Southlake, Tarrant County, Texas as described in the attached Exhibits “A” and “B”. Rent: $1.00 for term of lease Term (months): Twenty-four (24) months. Commencement Date: July 31, 2008 Termination Date: July 31, 2010, or upon sixty days written notice from either party. Use: For agricultural purposes only – grazing a maximum of 3-4 head of cattle / horses II. Lease Clauses and Covenants 1. Tenant Agrees to – “as is” a. Accept the premises in their present condition , as shown in exhibits “A” and “B” and incorporated herein as a part of this agreement, the premises being currently suitable for Tenant’s intended use. In this regard, Tenant acknowledges that Tenant has inspected the premises, and has found them free from defect or dangerous condition as of the date hereof. Shana Yelverton, City Manager City Council Meeting Date – June 17, 2008 Page 4 of 10 b. Obey all laws, ordinances, orders, and rules and regulations applicable to the use, condition, and occupancy of the premises. c. Allow Landlord to enter the premises, with reasonable notice. d. Repair and maintain the premises. This shall include mowing and maintaining the premises in a good and safe condition. e. Repair any damage to the premises caused by Tenant. f. Maintain insurance on Tenant’s personal property. g. Deliver certificates of insurance to Landlord on or before the Commencement Date and prior to renewal of policy. Tenant will carry Liability and Property Damage Insurance sufficient to provide adequate protection against damage claims which may arise from operations under this Contract. Tenant hereby waives subrogation rights for loss or damage to the extent same are covered by insurance. Insurers shall have no right of recovery or subrogation against the Landlord, it being the intention that the insurance policies shall protect all parties to the contract and be primary coverage for all losses covered by the policies. INDEMNIFY, DEFEND, AND HOLD LANDLORD, ITS AGENTS, h. OFFICIALS AND EMPLOYEES HARMLESS FROM ANY LIABILITY LOSS, ATTORNEY’S FEES, EXPENSES, OR CLAIMS ARISING OUT OF USE OF THE PREMISES. NOTHING CONTAINED HEREIN SHALL BE CONSTRUED TO LIMIT OR WAIVE ANY GOVERNMENTAL OR SOVEREIGN IMMUNITY OF LANDLORD OR ANY IMMUNITY APPLICABLE TO ITS OFFICERS, AGENTS, SERVANTS OR EMPLOYEES, NOR SHALL IT BE CONSTRUED TO LIMIT OR WAIVE ANY INSURANCE COVERAGE OR THE LANDLORD’S STATUS AS AN ADDITIONAL NAMED INSURED AS PROVIDED IN AGREEMENT. i. Vacate the premises on termination of this lease. j. Use the premises solely for Tenant’s intended uses, which Tenant represents, acknowledges and agrees is agricultural, specifically, grazing of livestock. Tenant agrees not to – 2. a. Use the premises for any purpose other than that stated in the basic lease terms and definitions. b. Use the premises for any business purpose. Shana Yelverton, City Manager City Council Meeting Date – June 17, 2008 Page 5 of 10 c. (i) Create a nuisance, (ii) permit any waste, (iii) install barbed wire fencing or any other method of fencing that is designed to inflict injury, or (iv) use the premises in any way that is extra hazardous, would increase insurance premiums, or would void insurance on the premises. d. Alter the premises, except as agreed to in writing by the City of Southlake. e. Assign this lease or sublease any portion of the premises. Landlord and Tenant agree to the following: 3. Alterations. a. Any physical additions or improvements to the premises made by Tenant will become the property of Landlord. Default. b. Tenant shall be in default by failing to comply within ten days after written notice with any provision of this lease. Landlord’s Remedies. c. Landlord’s remedies for Tenant’s default are to (i) enter and take the premises on behalf of Tenant; (ii) terminate this lease by written notice and sue for damages. Landlord may enter and take possession of the premises by self-help, by picking or changing locks if necessary, and may lock out Tenant or any other person who may be entering the premises without being liable for damages. Default/Waiver/Mitigation. d. It is not a waiver of default if the non- defaulting party fails to declare immediately a default or delays in taking any action. Pursuit of any remedies set forth in this lease does not preclude pursuit of other remedies in this lease or provided by law. Holdover. e. If Tenant does not vacate the premises following termination of this lease, Tenant shall be a tenant at will and shall vacate the premises immediately upon receipt of notice from Landlord. No holding over by Tenant, whether with or without the consent of Landlord, will extend the term for any period of time whatsoever. Notices. f. Any notice required by this lease shall be deemed to be delivered (whether or not actually received) when deposited with the United States Postal Service, postage prepaid, certified mail, return receipt requested, and addressed to Landlord or Tenant at their addresses. Abandoned Property. g. Landlord may retain, destroy, or dispose of any property left on the premises at the end of the term, and Tenant agrees that Landlord shall have no liability to Tenant regardless of disposition of such property. Shana Yelverton, City Manager City Council Meeting Date – June 17, 2008 Page 6 of 10 Landlord: ________________________________ City of Southlake Tenant: ________________________________ William Doyle Ihnfeldt ________________________________ Peggy Ihnfeldt Shana Yelverton, City Manager City Council Meeting Date – June 17, 2008 Page 7 of 10 Coker Coker Foxfire Ln. Property Property USACOE USACOE Land Land Shana Yelverton, City Manager City Council Meeting Date – June 17, 2008 Page 8 of 10 Coker Property 4.0 acres Shana Yelverton, City Manager City Council Meeting Date – June 17, 2008 Page 9 of 10 EXHIBIT B Shana Yelverton, City Manager City Council Meeting Date – June 17, 2008 Page 10 of 10