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R-99-06-24-10C2 - 6/24/1999. CITY OF ROUND ROCK t .. % ... � .;eear Mayor Robert A. Maim, in Mayor Pro -tem Martha A. Chavez Council Members To Nielson Earl M. Hairston Rick Stewart Earl Palmer Jimmy Joseph City Manager Robert L Bennett. Jr, Clty Attorney Stephan L Sheets October 7, 1999 Mr. Robert K. Lewis 109 East Main Street Round Rock, Texas 78664 Dear Mr. Lewis: 221 East Mein Street Round Rock, Texas 78664 512 -218 -5400 The Round Rock City Council approved Resolution No. R- 99- 06- 24 -10C2 at their regularly scheduled meeting on June 24, 1999. This resolution approves the Office Lease Form to lease office space at 117 E. Main Street for the Microenterprise Assistance Center. Enclosed is a copy of the resolution and lease agreement for your files. If you have any questions, please do not hesitate to contact Joe Vining at 218 -5415. Sincerely, Joanne Land Assistant City Manager/ City Secretary Enclosures Fax: 512- 218 -7097 1- 800. 735 -2989 TDD www.ci.round- rock.tx.us 1 -800- 735 -2988 Voice Scheme "C" Scale: 3/32 " =1' -0" The Fair Round Rock, Texas Date: 5/4/99 Cwilaralalso r J ASSIGNMENT OF LEASE AGREEMENT FOR VALUE RECEIVED, the receipt and sufficiency of which is hereby acknowledged, the undersigned, Kip Lewis_ "Assignor ", Lessor of that certain lease agreement described below, does hereby grant, bargain, sell, convey and assign unto Kevin Monteith "Assignee ", all his/her right, title and interest in and to said Lease Agreement. The monthly rental payments as provided in said lease agreement are $1880.00 per month with the next payment being due on the 1st day of April, 2002. Lease Agreement executed by Kip Lewis, "Lessor ", and The City of Round Rock, "Lessee ", concerning premises located at 117 East Main, and provided for lease payments of $1880.00 per month, dated the 24th day of June 1999. Payments commenced on the 1st day of July, 1999 and end at the termination of the lease on the 1' day of July, 2004. Assignee is further assigned all rights and obligations of Lessor in the Lease subject to the laws of the State of Texas. Assignee is only acquiring the rights of Lessor during the term of the lease assigned and all rights in the real estate, including ownership of same, is retained by Assignor. Assignor: Assignee: WI ESS THE SIGN" S OF THE PARTIES: Date: — Z t)i i- NOTICE OF ASSIGNMENT OF LEASE AGREEMENT AND NEW ADDRESS FOR PAYMENT OF RENT Tenant: The City of Round Rock, Texas of Lease Agreement dated the 24th day of June, 1999 for the leased premises identified as: Assignee: /.1 1.2- The Fair Building 117 East Main Round Rock, TX 78664 is hereby advised that the above referenced Lease Agreement has been assigned to Kevin Monteith, Assignee, and Tenant is hereby directed to make all future rental payments to Assignee at the following address: Kevin Monteith 8442 Fem Bluff Ave. Round Rock, TX 78681 IN WITNESS HEREOF, the undersigned have caused this instrument to be executed and served upon Tenant. Assignor: _ , / _ Date: 3"-- Date: 3 /-2.60 RESOLUTION NO. R- 99- 06- 24 -10C2 WHEREAS, the City of Round Rock has funding available for economic development activities through the Community Development Block Grant from the U.S. Department of Housing and Urban Development, and WHEREAS, as part of Project 2 -1 of the Community Development Action Plan, the City wishes to create a Microenterprise Assistance Center ( "Center ") to enhance entrepreneurial opportunities for low to moderate income owners of start -up or existing business, and WHEREAS, the City wishes to lease office space for the Center at 117 E. Main Street from Robert K. Lewis, Now Therefore BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS, That the Mayor is hereby authorized and directed to execute on behalf of the City an Office Lease Form with Robert K. Lewis to lease office space at 117 E. Main Street for the Microenterprise Assistance Center, a copy of same being attached hereto and incorporated herein for all purposes. The City Council hereby finds and declares that written notice of the date, hour, place and subject of the meeting at which this Resolution was adopted was posted and that such meeting was open to the public as required by law at all times during which this Resolution and the subject matter hereof were discussed, considered and formally acted upon, all as required by the Open Meetings Act, w: \UPDOCS \aesonuxx \asoeaacz.weo /spy Chapter 551, Texas Government Code, as amended, and the Act. ATTEST: RESOLVED this 24th day of June, 1999. ##Lu,L / 1 E LAND, City Secretary 2 RT3�' A. STLUKA, J'., Mayor City of Round Rock, Texas Date: Landlord: ROBERT K. LEWIS Landlord's Mailing Address: ROBERT K. LEWIS 109 East Main Round Rock, Texas Williamson County OFFICE LEASE FORM TERMS AND DEFINITIONS Tenant: THE CITY OF ROUND ROCK, TEXAS Tenant's Mailing Address: THE CITY OF ROUND ROCK, TEXAS Premises: County Approximate Square Feet: 1646 Sq. Ft. (Rear Portion, as shown on building layout attached hereto) Name of Building: The Fair Building Street Address /Suite: 117 East Main, Round Rock, Texas 78664 Base Rent (monthly): $1,880.00 Term (years): five (5) years, subject to the non - appropriation clause below. Commencement Date: July 1, 1999 Termination Date: July 1, 2004 Security Deposit: None Use: Micro - enterprise assistance center, which includes several small businesses located on the premises; resource centers and on- c \TE T \ROUNDROC \MISC \LEWISS, WPC /cdc site reference materials. Amount of Liability Insurance: Death /Bodily Injury: Property: $250,000 Guarantors: NONE $1,000,000 "Rent" means base rent plus any other sums of money due Landlord by Tenant. "Landlord" means Landlord and its agents, employees, invitees, licensees, or visitors. "Tenant" means Tenant and its agents, employees, invitees, licensees, or visitors. "Essential Services" means heating, ventilating, air conditioning, water, and utility connections reasonably necessary for occupancy of the premises for the use stated above. "Common Areas" means all facilities and areas of the building that are intended and designated by Landlord from time to time for the common, general, and nonexclusive use of all tenants of the building. Landlord shall have the exclusive control over and right to manage the common areas. "Building Operating Hours" means 6:00 a.m. to 8:00 p.m. Monday through Saturday. "Operating Expenses" means all expenses that Landlord shall reasonably pay in connection with the ownership, operation, and maintenance of the building, except principal and interest on any debt, expenditures classified as capital expenditures for federal income tax purposes, and expenses for which Tenant is required to reimburse Landlord. LEASE CLAUSES AND COVENANTS A. Tenant agrees to -- 1. Lease the premises for the entire term beginning on the commencement date and ending on the termination date. 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, including the rules and regulations of the building. 4. Pay monthly, in advance, on the first day of the month, the base rent to Landlord at Landlord's address. 5. Pay a late charge of five (5a) percent of any rent not received by Landlord by the 15th day of the month in which it is due. 6. Pay for all utility services used by Tenant and not provided by Landlord. 7. Allow Landlord to enter the premises to perform Landlord's obligations, inspect the premises, and show the premises to prospective purchasers or tenants. 8. Repair, replace, and maintain any part of the premises that Landlord is not obligated to repair, replace, or maintain, normal wear excepted. 9. Repair any damage to the premises, if any, caused by Tenant. 10. Submit in writing to Landlord any request for repairs, replacement, and maintenance that are the obligations of Landlord. 11. Maintain public liability insurance for the premises and the conduct of Tenant's business, naming Landlord as an additional insured, in the amounts stated in the basic lease terms and definitions. 12. Maintain insurance on personal property located on the premises. 13. Indemnify, defend, and hold Landlord harmless from any loss, attorney's fees, expenses, or claims arising out of use of the premises. 14. Vacate the premises and return all keys to the premises on termination of this lease. Tenant agrees not to -- 1. Use the premises for any purpose other than that stated in the basic lease terms and definitions. 2. (a) Create a nuisance, (b) interfere with any other tenant's normal business operations or Landlord's management of the building, ° permit any waste, or (d) use the premises in any way that is extra hazardous, would increase insurance premiums, or would void insurance on the building. 3. Change Landlord's lock system. 4. Alter the premises, without written approval from Landlord. 5. Allow a lien to be placed on the premises. Landlord agrees to -- 1. Lease to Tenant the premises for the entire term beginning on the commencement date and ending on the termination date. 2. Obey all laws, ordinances, orders, and rules and regulations applicable to the use, condition, and occupancy of the building, and the parking facility, if any. 3. Provide normal utility- service connections to the building. 4. Repair, replace, and maintain the (a) roof, (b) foundation, (d) structural soundness of the exterior walls, doors, corridors, and windows, and (e) other structures or equipment serving the premises. 5. Insure the building against all risks of direct physical loss in an amount equal to at least 90 percent of the full replacement cost of the same as of the date of the loss and liability; Tenant will have no claim to any proceeds of Landlord's insurance policy. 6. Return the security deposit to Tenant, less itemized deductions, if any, within thirty days after the termination of this lease. 7. Provide the following services: (a) air conditioning and heating to the premises reasonable for Tenant's use (exclusive of air conditioning or heating for electronic data processing or other specialized equipment) during building operating hours and at such other times at such additional cost as Landlord and Tenant may agree on; (b) hot and cold water for lavatory and drinking purposes; ° janitorial service and periodic window washing; (e) electric current for normal office machines and building's standard lighting reasonable for Tenant's use; and (f) lighting in common areas and fluorescent lights in building's standard light fixtures on the premises; (g) full compliance with all American With Disabilities Act requirements, including but not limited to, ramping access and bathroom facilities. D. Landlord agrees not to -- 1. Interfere with Tenant's possession of the premises as long as Tenant is not in default. 2. Withhold consent to a proposed assignment or sublease. E. Landlord and tenant agree to the following: 1. Alterations. Any physical additions or improvements to the premises made by Tenant will become the property of Landlord. Landlord may require that Tenant, at termination of this lease and at Tenant's expense, remove any physical additions and improvements, repair any alterations, and restore the premises to the condition existing at the commencement date, normal wear excepted. 2. Abatement. Tenant's covenant to pay rent and Landlord's covenants are independent of each other. Except as otherwise provided, Tenant shall not be entitled to abate rent for any reason. 3. Release of Claims /Subrogation. Landlord and Tenant release each other from any claim, by subrogation or other- wise, for any damage to the premises, the building„ or personal property within the building, by reason of fire or the elements, regardless of cause, including negligence of Landlord or Tenant. This release applies only to the extent that it is permitted by law, the damage is covered by insurance proceeds, and the release does not adversely affect any insurance coverage. 4. Notice to Insurance Companies. Landlord and Tenant will notify the issuing insurance companies of the release set forth in the preceding paragraph and will have the insurance policies endorsed, if necessary, to prevent invalidation of the insurance coverage. 5. Casualty /Total or Partial Destruction. (a) If the premises are damaged or are partially damaged by casualty and cannot be restored within thirty days, Tenant shall have the option of terminating the lease as of the time of the casualty. (b) To the extent the premises are untenantable after the casualty and the damage was caused by Tenant, the Tenant shall pay an additional one month rent as liquidated damages. 6. Condemnation /Substantial or Partial Taking. (a) If the premises cannot be used for the purposes contemplated by this lease because of condemnation or purchase in lieu of condemnation, this lease will terminate. (b) Tenant will have no claim to the condemnation award or proceeds in lieu of condemnation. 7. Default by Landlord /Events. Defaults by Landlord are (a) failing to comply with any provision of this lease within thirty days after written notice or (b) failing to provide essential services to Tenant within ten days after written notice. 8. Default by Landlord /Tenant's Remedies. Tenant's remedies for Landlord's default are to (a) sue for damages, and (b) if Landlord does not provide an essential service for thirty days after default, terminate this lease. 9. Default by Tenant /Events. Defaults by Tenant are (a) failing to pay timely rent, (b) abandoning or vacating a substantial portion of the premises, or ° failing to comply within ten days after written notice with any provision of this lease other than the defaults set forth herein. 10. Default by Tenant /Landlord's Remedies. Landlord's remedies for Tenant's default are to (a) enter and take possession of the premises, after which Landlord may relet the premises on behalf of Tenant and receive the rent directly by reason of the reletting; (b) enter the premises and perform Tenant's obligations; or ° terminate this lease by written notice. 11. Default /Waiver /Mitigation. It is not a waiver of default if the nondefaulting 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. Landlord and Tenant have a duty to mitigate damages. 12. 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. 13. Attorney's Fees. If either party retains an attorney to enforce this lease, the prevailing party is entitled to recover reasonable attorney's fees. 14. Venue. Venue is in the county in which the premises are located. 15. Entire Agreement. This lease is the entire agreement of the parties, and there are no oral representations, warranties, agreements, or promises pertaining to this lease or to the expressly mentioned exhibits and riders not incorporated in writing in this lease. 16. Amendment of Lease. This lease may be amended only by an instrument in writing signed by Landlord and Tenant. 17. 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. 18. Abandoned Property. Landlord may retain, destroy, or dispose of any property left on the premises at the end of the term. 19. Base Rent Adjustment after Initial Term. Beginning one year from the termination date, the base rent shall be adjusted on each anniversary of the termination date (the "adjustment date ") to reflect increases in the Consumer Price Index for "All Urban Consumers, U.S. City Average, All Items," issued by the Bureau of Labor Statistics of the United States Department of Labor. a. The adjustments in the base rent shall be determined by multiplying the base rent specified in the lease terms and definitions ( "initial base rent ") by a fraction, the numerator of which is the index number for the last month before the adjustment (the "current in- dex") and the denominator of which is the index number for the first month of the first year of the term (the "base index "). If the product is greater than the ini- tial base rent, Tenant shall pay this greater amount as base rent until the next rental adjustment. Base rent shall never be less than the initial base rent. b. Landlord shall notify Tenant of each adjustment to base rent no later than sixty days after the adjustment date. 20. Extension Option. Tenant shall have the option to extend the term as provided below. Landlord grants Tenant an option to extend the term for the period from July 1, 2004 to July 1, 2010 (the "additional term "). Tenant's rights under this option shall terminate if (1) the lease or Tenant's right to possession of the premises is terminated, (2) Tenant fails to timely exercise the option, or (3) default exists at the time Tenant seeks to exercise the option. Landlord and Tenant agree to the following: 1. During the additional term the lease shall continue as written. 2. The option to extend for the additional term shall be exercised by a written notice delivered to Landlord ninety days before the termination date. 21. The City reserves the right to terminate this Lease at the end of the City's fiscal year if the City Council does not appropriate moneys sufficient to pay the rent described herein, as determined by the City's budget for fiscal year in question. If this lease is terminated, the City shall pay all rents due and have not been paid from those funds remaining which are appropriated for said rent at or before the end of its then current fiscal year. 22. The City reserves the right to terminate this lease if any part of the premises is not in compliance with any provisions of the Americans with Disabilities Act, or any other state or federal rule or regulation. LANDLORD TENANT THE CI ' ROUND ROCK, TEXAS PREPARED IN THE OFFICE OF: Brown, McCarroll, Sheets & Crossfield, L.L.P. 309 East Main Round Rock, Texas 78664 BY: T STLUKA, Mayor i I i I - G/�DNN ECT�oN _ I I I I ComO The Fair Scheme"C" Round Rock,Texas Smle:3132^-I'V D-:5/4,99 `;,,, DATE: June 21, 1999 SUBJECT: City Council Meeting — June 24, 1999 ITEM: 10.C.2. Consider a resolution authorizing the Mayor to execute a lease agreement with Robert K. Lewis for lease space at 117 E. Main Street. This space will be used for the Microenterprise Assistance Center as part of Project 2 -1 of the Community Development Action Plan. Agent: Kip Lewis. Staff Resource Person: Joe Vining, Planning Director.