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Item 5CCity of Southlake, Texas MEMORANDUM February 12, 2002 TO: Billy Campbell, City Manager FROM: Kevin Hugman, Director of Community Services (x1527) SUBJECT: Approval of lease agreement with Marilyn Tucker for use of 61 acres of parkland and house at Bob Jones Park. Action Requested: City Council approval to enter into a new lease agreement with Marilyn Tucker for use of 61 acres of parkland and house at Bob Jones Park. Background Information: When the City purchased 61 acres of land from Ms. Marilyn Tucker in March, 1999, a condition of the sale was a lease agreement between Ms. Tucker and the City for her continued use of the property for the purpose of boarding horses. The lease was for one year, with two (2) options to renew for additional one -year terms. Those renewal options were exercised, and the current lease expires on March 30, 2002. Ms. Tucker and the City desire to continue the lease agreement for the following reasons: (1) the property is designated for future equestrian facilities, however, there is no funding for improvements in the near term and no planned use by the City in the near term. (2) Ms. Tucker is sub - leasing the existing house (her former residence) to a caretaker who oversees and maintains the property, house, and horses. It is desirable to the City to continue this arrangement in that it provides for a presence on the park property, which is remote from the main portion of Bob Jones park (soccer fields areas). This allows for continued upkeep of the house and grounds and preserves the City's investment until such time as development occurs. (3) The lease agreement is for a one -year term, with two (2) additional renewals with the City Manager's approval, however, there is also a 30 -day termination clause. This allows maximum flexibility to the City should there be plans for development during the term of the agreement. The lease agreement provides that the caretaker maintain the premises, including the house, all vegetation and physical structures, and report suspicious activities in the vicinity to the City. This is especially beneficial to the City given some of the recent vandalism and fires at Bob Jones Park. Billy Campbell, City Manager February 12, 2002 Page 2 Financial Considerations: The lease stipulates $1 per term. In lieu of lease payments, the City has the benefit of a caretaker residing on the premises and maintaining and protecting the structures and property. Citizen Input/ Board Review: The Park Board approved this item (6 -0) for recommendation to City Council at their February 11, 2002 meeting. Legal Review: The City Attorneys have reviewed the lease agreement. Alternatives: Input as desired. Supporting Documents: Lease between City of Southlake and Marilyn Tucker. Staff Recommendation: City Council approval of lease agreement with Marilyn Tucker for use of 61 acres of parkland and house at Bob Jones Park. KII LEASE BETWEEN CITY OF SOUTHLAKE AND MARILYN TUCKER I. Terms and Definitions Date: January 31, 2002 Landlord: City of Southlake Landlord's Address: 1400 Main Street, Suite 460 Southlake, Texas 76092 Tenant: Marilyn Tucker (May be leased to sub - tenant upon written consent of the Landlord) Tenant's Address: 31 -A Bob Jones Road Roanoke, Texas 76262 Premises: Approximately 61 acres located in Southlake, Tarrant County, Texas, as more particularly described on the attached Exhibit "A" Rent: $1 per term. Term (months): Twelve (12) months. Commencement Date: March 1, 2002 Termination Date: February 28, 2003, with the option to renew for two additional 12- month consecutive terms with written consent of the Landlord's City Manager. Use: For residential purposes and to continue Tenant's existing business of boarding and grazing no more than ten (10) horses and no more than ten (10) head of cattle. Amount of Liability Insurance: Death /Bodily Injury: $1,000,000 minimum II. Lease Clauses and Covenants Tenant Agrees to — 1. Act as caretaker for the premises, maintaining all vegetation and physical structures in a condition consistent with the conditions of the premises at time of purchase by the Landlord and otherwise suitable to the Landlord, and inform the Landlord immediately of any suspicious conduct or activities occurring on the premises or in the vicinity. 2. Accept the premises in their present condition "as is," the premises being currently suitable for Tenant's intended use. 3. Obey all laws, ordinances, orders, and rules and regulations applicable to the use, condition, and occupancy of the premises. 4. Allow Landlord to enter the premises, with reasonable notice. 5. Repair any damage to the premises caused by Tenant and maintain in good, safe condition. 6. Maintain public liability insurance for the premises and the conduct of Tenant's business, naming Landlord as additional insured, in the amounts stated in the basic lease terms above. Such insurance policies shall contain a provision that they shall not be canceled without giving Landlord thirty (30) days' notice. 7. Maintain insurance on Tenant's personal property and require sub - tenant, if any, to maintain insurance on sub - tenant's personal property. 8. Deliver certificates of insurance to Landlord before the Commencement Date and thereafter when requested. 9. INDEMNIFY, DEFEND, AND HOLD LANDLORD HARMLESS FROM ANY LIABILITY LOSS, ATTORNEY'S FEES, EXPENSES, OR CLAIMS ARISING OUT OF USE OF THE PREMISES, WHETHER OR NOT THE CLAIM ARISES OUT OF LANDLORD'S NEGLIGENT ACT OR OMISSION. 10. Vacate the premises on termination of this lease. 11. Use the premises solely for Tenant's residence and for the boarding and grazing of no more than ten (10) horses and no more than ten (10) head of cattle. 12. Comply with the provisions of Texas Civil Practice and Remedies Code, Sec. 87.005, and post and maintain a sign that contains the prescribed warning in a clearly visible location on or near the stable and include the warning in every written contract that Tenant enters into for boarding services or equine activities. 13. Provide Landlord with a copy of each agreement Tenant has entered into for boarding services. 14. Recognize that Landlord may construct improvements upon the premises and Tenant waives any claim for damages and releases Landlord, its officers, employees and contractors, from any liability arising from the construction of improvements. B. Tenant agrees not to — 1. Use the premises for any purpose other than that stated in the basic lease terms and definitions. 2. Use the premises for any purpose other than as provided herein. 3. (i) Create a nuisance, (ii) permit any waste, or (iii) use the premises in any way that is extra hazardous, would increase insurance premiums, or would void insurance on the premises. 4. Alter the premises. 5. Assign this lease or sublease any portion of the premises without written consent of Landlord. C. Landlord and Tenant agree to the following: 1. Termination. Either party may terminate this lease for any reason upon thirty (30) days written notice to the other party. 2. Alterations. Any physical additions or improvements to the premises made by Tenant will become the property of Landlord. 3. Default. Tenant shall be in default by failing to comply within ten (10) days after written notice with any provision of this lease. 4. Landlord's Remedies. 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 occupying the premises without being liable for damages. 5. Default /Waiver /Mitigation. 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. 6. Holdover. If Tenant does not vacate the premises following termination of this lease, Tenant shall be a tenant at will and shall vacate the premises on receipt of notice from Landlord. No holding over by Tenant, whether with or without the consent of Landlord, will extend the term. 7. Attorney's Fees. If either party retains an attorney to enforce this lease, the prevailing party is entitled to recover reasonable attorney's fees. 8. Notices. 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. 9. Abandoned Property. Landlord may retain, destroy, or dispose of any property left on the premises at the end of the term; however, Tenant shall have the first right of refusal to purchase any of the small barns and out- buildings Landlord proposes to be demolished, during the term of this lease. Tenant: Landlord: City of Southlake By: City Manager ATTEST: CITY SECRETARY Exhibit "A" (Tucker Lease Area) 500 0 500 1000 1500 2000 2500 3000 3500 4000 4500 Feet 0 Tucker Lease 0 Building Footprints 0 Land Parcels «: Corps of Engineers Boundary N -.�L W E S