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CM-04-08-023Request for City Council/City Manager Action Please submit this form when placing items on the council agenda or when submitting an item to the City Manager for approval. (fi Department: CVB Project Manager/Resource: Joe Vining Contact Person: Joe Vining/Nancy Yawn Project Name: Lease Office Space ContractorNendor Name: Huggins -Three L.P. Amount: Council Meeting Date: Funding Source: Assigned Attomey: Hotel Occupancy Tax J. Kay Gayle $24,300.00 (contract, a reement,amendment,change order, purchh)ase order,etc. Is Funding Required? Council Agenda Item Submission to City Manager - Yes Yes X No❑ CC. I/' sec+°2 „_•_ J Yes ElNoEl X No ❑ (see required signatures below before submission to the City Manager) Agenda Wording: ❑ Initial Construction Contract ❑ Construction Contract Amendment # ❑ Change Order # Change in Quantity FlUnforeseen Circumstances ❑ Initial Professional Services Agreement ❑ Supplemental Professional Svcs. Agr. # ❑ Purchasing/Service Agreement ❑ Purchase Order Item(s) to be purchased: Amount ❑ Other (Please clearly identify action on lines below One Year Lease Contract $24,300.00 Consider a resolution authorizing the Mayor/City Manager to sign a lease agreement with Huggins -Three L.P. For Submission to City Manager Only Project Mgr. Signature: Dept. Director Signature: City Attorney Signature: City Manager Signature: Date: Date: 8 - 2.7- o f- Date: 9 Date: al Approval is required for all items requesting City Manager's appr • val. Finance Approval X❑ Finance -Date and Signature: Cheryl Delaney Purchasing -Date and Signature: 8/25/2004 g/administration/cmgr-council actionxls 7-14-04 DATE: August 25, 2004 SUBJECT: City Council Meeting, September 9, 2004 ITEM: Consider a resolution authorizing the Mayor to execute a commercial lease agreement with Huggins -Three L.P. to lease approximately 1350 square feet of office space for the Convention and Visitors Bureau. Department: Convention and Visitors Bureau Staff Person: Joe Vining, Executive Director of Community Development Justification: This is temporary office space for the Convention and Visitors Bureau Funding: Cost: $24,300 Source of funds: Hotel Occupancy Tax Outside Resources: N/A Background Information: Following the adoption of the Tourism Plan, a Convention and Visitors Bureau was formed and staffed. The location was to be within city offices which will require this usage. Public Comment: None required. Connie Singleton From: Lynn Olsen Sent: Wednesday, August 25, 2004 11:02 AM To: Connie Singleton Cc: Nancy Yawn Subject: RE: Finance Approval Connie, This item is being reviewed by both Elaine Wilson and Cheryl Delaney in the Finance Dept. They know that today is the deadline for turning in these items. I expect to hear from them when their review is complete and I will email the approval to you. If there should be any problems they will contact Nancy. Thanks, Lynn Olsen Accountant City of Round Rock Finance Department 512-218-5437 Original Message From: Connie Singleton Sent: Wednesday, August 25, 2004 10:41 AM To: Lynn Olsen Subject: RE: Finance Approval Lynn, I have my blue sheet prepared for the Council, Vickie says I will need to attach the approved Financial Approval form. Can I come by and get that from you today? If so, where/when.3 Thank you, Connie Original Message From: Lynn Olsen Sent: Tuesday, August 24, 2004 10:08 AM To: Connie Singleton; Cheryl Delaney; Howard Baker; Elaine Wilson Subject: RE: Finance Approval Connie, This is on the "old" form. Please use the updated form I sent you this morning. I'll attach it again. «File: FinAprvlform.xls» Thanks, Lynn Olsen Accountant City of Round Rock Finance Department 512-218-5437 Original Message From: Connie Singleton Sent: Tuesday, August 24, 2004 9:49 AM To: Lynn Olsen; Cheryl Delaney; Howard Baker; Elaine Wilson Subject: Finance Approval Importance: High « File: Finance approval form LEASE.xls » I realize this is past the deadline, but it would be GREATLY appreciated If you could 1 COMMERCIAL LEASE AGREEMENT This Commercial Lease Agreement is made and entered into by and between Lessor HUGGINS-THREE, L.P., a Texas limited partnership, (hereinafter referred to as "Lessor Huggins") and Lessee CITY OF ROUND ROCK, TEXAS, a municipal corporation (hereinafter referred to as "Lessee City"). Date: Lessor: Lessor's Address: 21 , 2004 HUGGINS-THREE, L.P., a Texas limited partnership 116 East Main Street Round Rock, Texas 78664 Lessee: CITY OF ROUND ROCK, TEXAS, a municipal corporation Lessee's Address: 221 East Main Street Round Rock, Texas 78664 Leased Premises: Lease Commencement Date (Initial Term): Lease Expiration Date (Initial Term): Lease Initial Term: Extension Option: Approximately 1,350 square feet net rentable area located in the building at 116 East Main Street in Round Rock, Williamson County, Texas, as shown on Exhibit "A" attached hereto and made a part hereof (hereinafter referred to as the "Office Space"), along with accompanying unassigned spaces in appurtenant parking facilities, if any. September 1, 2004 August 31, 2005 One (1) year Lessor Huggins grants to Lessee City an extension option to extend the Lease Initial Term to provide for a month-to-month tenancy by Lessee City beginning on the Lease Expiration Date. Lessee City's rights under this extension option terminate if (a) this lease or Lessee City's right to possession of the premises is terminated, or (b) Lessee City fails to timely exercise the extension option, or (c) default exists at the time Lessee City seeks to exercise the extension option. Lessor Huggins and Lessee City agree to the following: 1 Lease Rent: a. The option to extend must be exercised by Lessee City's written notice delivered to Lessor Huggins at least sixty (60) days prior to the Lease Expiration Date. b. During any additional lease term, the lease will continue with the same terms as written herein. c. If Lessee City timely exercises the extension option, then Lessee City agrees to provide written notice delivered to Lessor Huggins at least sixty (60) days prior to terminating the month-to-month tenancy. In all cases, within the extension option, Lessee City will be obligated on a month- to-month tenancy basis for sixty (60) days following delivery of written notice to terminate. Monthly Lease Rent $2,025.00 Annualized Lease Rent $24,300.00 Based upon $18.00 per square foot x 1,350 square feet leased Permitted Lease Uses: City offices open to the public ARTICLE I Leasing of Premises. Subject to and upon the terms and conditions herein set forth, and each in consideration of the duties, covenants and obligations of the other hereunder, Lessor Huggins hereby leases to Lessee City and Lessee City hereby leases from Lessor Huggins the premises. Lessor Huggins represents and warrants that the premises are a part of the premises it is authorized to lease. ARTICLE II Performance Representations by Lessee City. Lessee City hereby covenants and agrees to do the following: 1. Lease the premises for the Lease Initial Term, on the terms and conditions enumerated herein, beginning on the Lease Commencement Date (Initial Term) and ending on the Lease Expiration Date (Initial Term), unless such term is properly extended hereunder. 2. Accept the premises in their present condition, the premises being suitable "as is" for Lessee City's intended improvements, finish, and use. 2 3. Pay the Lease Rent per month to Lessor Huggins at its offices in Round Rock, Texas, or elsewhere within the United States as Lessor Huggins may from time to time designate in writing, payable in advance in equal monthly installments on the first day of each full calendar month, in legal tender for the payment of public and private debts, without set-off or deduction, upon receipt of monthly invoice, the sum of Two Thousand Twenty-five Dollars and No/100 ($2,025.00). All payments of Lease Rent and other amounts becoming due and payable from Lessee City to Lessor Huggins under and in connection with this lease may be made by delivering to Lessor Huggins, at the then applicable address provided for herein, Lessee City's check in the amount of such payment, on or before the due date thereof under the terms of this lease. 4. Pay a late charge of one percent (1%) of one month's rent if a monthly payment has not been paid by Lessee City by the tenth (10th) day of the month in which it is due. 5. If Lessee City independently arranges to have any utilities provided by a utility service provider, then Lessee City shall pay for all such utility services used by Lessee City and not provided by Lessor Huggins. 6. Obey all laws, rules, regulations, and terms of the lease and of the use, condition, and occupancy of the premises, including the rules and regulations of the building, if any, adopted by Lessor Huggins 7. Vacate the leased premises upon termination of this lease, and surrender all keys to the premises. 8. Allow Lessor Huggins to enter the premises to perform Lessor Huggins' obligations, or to reasonably inspect the premises, or at reasonable times to show the premises to prospective purchasers or tenants. 9. Submit written requests to Lessor Huggins for repairs, replacement, or maintenance of items or of the premises. 10. Maintain general liability insurance for the leased premises, with Lessor Huggins named as additional insured, in the amounts indicated on the Certificate of Insurance attached hereto as an exhibit. 11. Maintain appropriate insurance on Lessee City's personal property located within the leased premises. 12. Upon proper written request, deliver certificates of insurance to Lessor Huggins. 3 13. Indemnify, defend, and hold Lessor Huggins harmless from any loss or claim arising out of Lessee City's use of the leased premises or resulting from Lessee City's failure to comply with applicable provisions of the lease. 14. Upon request of Lessor Huggins, execute an estoppel certificate stating the commencement and expiration dates of the lease, identifying any amendments to the lease, describing any rights to extend the lease term, listing defaults by Lessor Huggins, and providing any other related information reasonably requested. Prohibition Representations by Lessee City. Lessee City hereby covenants and agrees not to do the following: 1. Use the leased premises for purposes other than the Permitted Lease Use. 2. Create a nuisance. 3. Interfere with other tenants' normal business operations, nor interfere with Lessor Huggins' management of the building. 4. Permit any waste. 5. Use the leased premises in a way that is extrahazardous, that would increase insurance premiums, or that would void insurance on the building. 6. Change Lessor Huggins' lock system, except as permitted. 7. Alter the leased premises, except as provided herein for statutorily -mandated alterations, or place any exterior sign on the premises, without Lessor Huggins' consent, which consent shall not be unreasonably withheld. 8. Allow a lien to be placed on the leased premises. 9. Assign this lease or sublet any portion of the leased premises without Lessor Huggins' written consent. ARTICLE III Performance Representations by Lessor Huggins. Lessor Huggins hereby covenants and agrees to do the following: 1. Lease the premises to Lessee City for the Lease Initial Term, on the terms and conditions enumerated herein, beginning on the Lease Commencement Date (Initial Term) and ending on the Lease Expiration Date (Initial Term), unless such term is properly extended hereunder. 4 2. Obey all laws, rules, regulations, and terms of the lease and of the use, condition, and occupancy of the premises. 3. Provide essential services and normal utility service connections to the premises. Essential services shall mean heating, ventilating, air conditioning, water, sewer and electrical connections reasonably necessary for occupancy of the premises and for the uses stated herein. 4. Provide water for lavatory and drinking purposes, access to electric current for normal office machines and building standard lighting reasonable for Lessee City's use, and lighting in common areas. However, Lessee City shall be obligated to maintain lighting in the premises by buying and installing new light bulbs and/or fluorescent tubes as needed. 5. Pay operating expenses for the premises. Operating expenses shall mean all expenses that Lessor Huggins shall be required to 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 Lessee City may be required to reimburse Lessor Huggins. 6. Repair and maintain the (a) roof, (b) foundation, (c) parking facilities and common areas, (d) exterior walls, doors and windows as to structural soundness but not necessarily as to appearance, and (e) plumbing, electrical and mechanical systems that serve the premises; provided that Lessor Huggins shall have no obligation to repair and maintain the heating, ventilating and air conditioning systems beyond the term of this lease agreement. Common areas shall mean all facilities and areas of the property where the premises are located that are intended and designated by Lessor Huggins for the common, general, and non- exclusive use of all tenants of the property, and Lessor Huggins shall have exclusive control over and the right to manage the common areas and the right to increase, reduce, or change the common areas. 7. Insure the building and any parking facilities against all risks of direct physical loss in an amount equal to at least ninety percent (90%) of the full replacement cost of same as of the date of loss and liability. The parties agree that Lessee City shall have no claim to any proceeds of Lessor Huggins' insurance policy. 8. Return the security deposit to Lessee City, less itemized allowable deductions if any, within thirty (30) days following termination of this lease agreement. Prohibition Representations by Lessor Huggins. Lessor Huggins hereby covenants and agrees not to do the following: 5 1. Interfere with Lessee City's possession of the premises so long as Lessee City is not in default. 2. Unreasonably withhold consent to a proposed assignment or sublease. ARTICLE IV Default by Lessee City 1. Default by Lessee City shall be defined as (a) failing to timely pay the Lease Rent, or (b) failing to begin a reasonable attempt to comply, within ten (10) days of receiving written notice from Lessor Huggins, with any substantive provision of the lease other than the defaults set forth in this paragraph 1 of Article IV. 2. Lessor Huggins' remedies for Lessee City's default are to (a) enter and take possession of the leased premises, after which Lessor Huggins may relet the leased premises on behalf of Lessee City and receive the Lease Rent directly by reason of the reletting, and Lessee City agrees to reimburse Lessor Huggins for actual expenditures reasonably made in order to relet; or (b) enter the leased premises and perform Lessee City's obligations; or (c) terminate this lease by proper written notice and sue for damages. Default by Lessor Huggins 1. Default by Lessor Huggins shall be defined as (a) Lessor Huggins failing to comply with any applicable provisions of the lease which constitute default; or (b) Lessor Huggins failing to begin a reasonable attempt to comply with any substantive provision of this lease within ten (10) days of receiving proper written notice. 2. Lessee City's remedies for Lessor Huggins' default include provisions under this Article IV and suit for damages, and termination of this lease if Lessor Huggins fails to provide an essential service for thirty (30) days after default. 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 as provided by law. Lessor Huggins and Lessee City have a duty to mitigate damages. ARTICLE V Excusable Delay. "Excusable Delay," as used herein, shall mean and include all delays in a party's performance of its obligations hereunder (other than its obligations to pay money), 6 including the impossibility of such performance, which shall result from or be caused by any legal proceedings or other litigation threatened, instituted against or defended by such party, in good faith, and not merely for purposes of delay; acts of God, acts of the public enemy, wars, blockades, epidemics, earthquakes, storms, floods, explosions, strikes, labor disputes, work stoppages, riots, insurrections, breakage or accident to machines or lines of pipe or mains, lawful acts of any governmental agency or authority restricting or curtailing the erection of the building, other causes beyond the reasonable control of such party, including but not limited to equipment failures (including without limitation failures of freight elevators), inability of Lessor Huggins to procure and obtain needed building materials whether as a result (directly or indirectly) of any lawful order, law or decree of any governmental authority or agency or otherwise, and any other cause, whether of the kind herein referred to or otherwise; provided, that as to any and all such causes of Excusable Delay the party subjected thereto (i) within ten (10) days after such party has knowledge thereof shall give the other party notice of the existence thereof and of the length of the delay anticipated therefrom, and (ii) within ten (10) days after the cause of delay has ceased to exist, shall give the other party notice of the actual Excusable Delay which resulted from such cause; and provided further, such party shall pursue with reasonable diligence the avoidance or removal of such delay. The inability or refusal of a party to settle any labor dispute shall not be deemed to qualify or limit the foregoing or the effect of Excusable Delay and no such failure or refusal shall constitute delay by such party for which such party shall be responsible hereunder. Force Majeure. All of the obligations of Lessor Huggins and of Lessee City under this lease are subject to delay or suspension resulting from Excusable Delay. The parties hereto shall exercise reasonable diligence to avoid or minimize any such delay or suspension. ARTICLE VI Keys. Lessor Huggins will provide Lessee City with an adequate number of keys to the premises. Additional keys may be obtained at Lessee City's cost and expense. No additional locks shall be allowed in the premises without Lessor Huggins' consent. Only with express prior written consent of Lessor Huggins, Lessee City may, at its sole cost and expense, change locks within its own premises area, provided that Lessee City furnishes a complete set of keys to all such locks to Lessor Huggins, and provided that such change of locks in no way impairs access to the common areas of the premises. Upon termination of this lease, Lessee City shall surrender to Lessor Huggins all keys to the premises. ARTICLE VII Abatement. Lessee City's covenant to pay rent and Lessor Huggins' covenants hereunder are independent of each other. Except as otherwise provided herein or by law, Lessee City shall not be entitled to abate rent for any reason. 7 ARTICLE VIII Use. Lessee City will use the premises only for office purposes which are consistent with standard rules of the building and such reasonable rules and regulations imposed from time to time with respect to the space leased by Lessor Huggins in the building. Any use of the premises which will affect the appearance of the building, exceed structural loads of floors or walls, affect the mechanical, plumbing or electrical systems of the building, affect ventilation in other areas of the building, or interfere with other tenants of the building must have Lessor Huggins' prior written approval. Access. Lessee City and its employees shall have access to the premises at all times. Lessee City's invitees and customers and the general public shall have access to the premises during normal business hours and, at Lessee City's election, after business hours if they shall comply with such security procedures as Lessor Huggins shall reasonably promulgate from time to time. ARTICLE IX Lessee City's Obligations. Lessee City covenants and agrees that it will not injure the building or the premises but will take the same care thereof which a reasonably prudent person would take of his/her own property, and upon termination of this lease, Lessee City will surrender and deliver up the premises to Lessor Huggins in similar condition in which the premises existed on the commencement date of this lease; subject, however, and except for ordinary wear and tear and damage arising from fire or other casualty. Lessee City agrees, at its cost and expense, to repair or replace any part of the premises damaged as a proximate result of negligent or wrongful acts or omissions of Lessee City or its agents, employees, representatives, invitees, licensees or visitors and to repair damage to the building proximately caused by the negligence or wrongdoing of Lessee City or its agents, employees or representatives acting within the scope of their agency, employment or representation; provided, however, that if Lessee City should fail or refuse to make such repairs or replacements with reasonable promptness after written notice from Lessor Huggins (having due regard to the nature of the required repairs or replacements and the effect of delay in making same on the appearance of the building or danger of injury to or interferences with other tenants and occupants of the building), then Lessor Huggins may, at its option but without any obligation to do so, enter the premises and make such repairs or replacements on the premises, should they be required, and Lessee City shall repay the actual costs thereof upon demand. ARTICLE X Alterations by Lessee City. Lessee City shall not make any alterations in or additions to the building or premises without Lessor Huggins' prior written consent to and approval thereof. Statutorily -Mandated Alterations. All parties hereto acknowledge and agree that 8 Lessee City, as a municipality, might now or in the future be required to make alterations to come into compliance with dictates of, i.e., Americans with Disabilities Act requirements. In such instance, Lessee City shall be required to notify Lessor Huggins in writing of such alteration, its design, plans and specifications and of the hours during which work would be performed on making such alterations. Lessee City shall be required to obtain the prior written consent and approval of Lessor Huggins for alterations, and same shall be made according to the terms of the lease. Lessor Huggins' Rights Upon Termination of Lease. All of Lessee City's improvements, fixtures and equipment of every description (unless such improvements, fixtures and equipment are removable without damage to the premises), any alterations or additions to the premises including those made with written consent, and any other article incorporated in or permanently affixed to the floor, wall or ceiling of the premises, shall become the property of Lessor Huggins and shall be and remain upon and be surrendered with the premises as a part thereof at the termination of this lease, Lessee City hereby waiving all rights to any payment or compensation therefor. In the event Lessor Huggins requests that Lessee City remove any of Lessee City's removable fixtures, equipment or property located in or about the premises or the building at the termination of this lease, Lessee City shall promptly remove same at its sole risk, cost and expense, and upon Lessee City's failure to remove same, Lessor Huggins may remove same at Lessee City's expense. ARTICLE XI Lessee City's Compliance With Laws. Lessee City will at its own cost and expense comply with all laws, ordinances, orders, rules and regulations (state, federal, municipal or promulgated by other agencies or bodies having jurisdiction thereof) relating to the use, condition or occupancy of the premises; will install, remove or alter such of Lessee's fixtures, equipment and facilities in the premises as may be necessary so to comply; will not engage in any activity which would cause Lessor Huggins' fire and extended coverage insurance to be canceled or the rate therefor to be increased over the rate which would have been charged had such activity not been engaged in by Lessee City (or in such event, at Lessee City's option, Lessee City will pay the amount of any such increase). ARTICLE XII Release of Claims/Subrogation. Lessor Huggins and Lessee City hereby release each other from any claim, by subrogation or otherwise, for any damage to the premises, the building, the parking facilities, or personal property within the building, by reason of fire or the elements, regardless of cause, including negligence of either party. 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. 9 Notice to Insurance Companies. Lessor Huggins and Lessee City shall notify the issuing insurance companies of the release set forth in the first paragraph of this Article XIII, and shall have the insurance policies endorsed, if necessary, to prevent invalidation of coverage. ARTICLE XIII Casualty/Total or Partial Destruction. (a) If the premises are damaged by casualty and can be restored within ninety (90) days (according to a mutually selected independent source), then Lessor Huggins will, at its expense, restore the premises to substantially the same condition as they existed in before the casualty. If Lessor Huggins fails to complete restoration within ninety (90) days from the date of written notification by Lessee City to Lessor Huggins of the casualty, then Lessee City may terminate this lease by written notice to Lessor Huggins; (b) If the premises cannot restored within ninety (90) days (according to a mutually selected independent source), or if Lessor Huggins' cost to restore the premises exceeds the total of all casualty insurance proceeds available to it by $10,000.000 or more, then Lessor Huggins may choose not to restore the premises. In that case, this lease agreement will terminate. If Lessor Huggins chooses to restore, it will notify Lessee City of the estimated time to restore and give Lessee City an option to terminate this lease by notifying Lessor Huggins within ten (10) days. If Lessee City does not terminate this lease, it shall continue and Lessor Huggins shall restore the premises as provided in (a) in this paragraph; (c) to the extent the premises are untenantable after the casualty and the damage was not caused by Lessee City, then the rent must be adjusted in a fair and reasonable manner. ARTICLE XIV 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, then this lease will terminate; (b) If there is a condemnation or purchase in lieu of condemnation and this lease is not terminated, then Lessor Huggins will, at its expense, restore the premises, and the rent payable during the unexpired portion of the term must be adjusted in a fair and reasonable manner; (c) Lessee City shall have no claim to the condemnation award or proceeds in lieu of condemnation. ARTICLE XV No Arbitration. In the event of any dispute regarding terms or performance of terms of this lease, it is agreed by all parties that such dispute shall not be subject to arbitration. ARTICLE XVI Limitation of Warranties. There are no implied warranties of merchantability, of fitness for a particular purpose, or of any other kind arising out of this lease, and there are not warranties that extend beyond those expressly stated in this lease. 10 No Text ARTICLE XVII Abandoned Property. Lessor Huggins may retain, destroy, or dispose of any property left and abandoned on the premises at the end of the lease term and any renewals. ARTICLE XVIII Non -Appropriation. This lease is a commitment of Lessee City's current revenues only. It is understood and agreed by all parties that Lessee City shall have the right to terminate this lease at the end of any City fiscal year if the governing body of City does not appropriate funds sufficient to make payments as determined by City's budget for the fiscal year in question. Lessee City may effect such termination by giving the other party hereto written notice of termination at the end of its then current fiscal year. ARTICLE XIX Severability Clause. If any term, covenant, condition or provision of this lease, or the application thereof to any person or circumstance, shall ever be held to be invalid or unenforceable, then in each such event the remainder of this lease or the application of such term, covenant, condition or provision to any other person or any other circumstance (other than such as to which it shall have been invalid or unenforceable) shall not be thereby affected, and each term, covenant, condition and provision hereof shall remain valid and enforceable to the fullest extent permitted by law. ARTICLE XX Notices. Any notice or communication to parties required or permitted to be given under this lease shall be effectively given only if in writing and shall be considered received three (3) days after depositing such notice in the U.S. registered or certified mails, postage prepaid, return receipt requested, or by commercial overnight courier service, addressed as follows: (a) If addressed to Lessee City: City of Round Rock, Texas 221 East Main Street Round Rock, TX 78664 Attention: City Manager With a copy to: City Attorney Stephan L. Sheets 309 East Main Street Round Rock, TX 78664 11 (b) If addressed to Lessor Huggins. Pule" , L 1t( 171. ti'�.4r Vcdk, 1 ic(c(1- Attention: f) 1 11 Ht rsict provided, however, that any party shall have the right to change the address to which notices shall thereafter be sent by giving notice to the other party as aforesaid, but not more than two addresses shall be in effect at any given time for Lessor Huggins and Lessee City hereunder. ARTICLE XXI Attorneys' Fees. In the event of litigation between Lessor Huggins and Lessee City wherein one or both parties is seeking to enforce any right or remedy hereunder, the prevailing party shall be entitled to recover its reasonable attorneys' fees incurred in connection with such litigation from the other party. ARTICLE XXII Applicable Law. This lease shall be governed by and construed in accordance with the laws of the state of Texas, and venue shall lie in Williamson County, Texas. ARTICLE XXIII Miscellaneous Provisions. The parties hereto agree as follows: (a) Binding Effect. The covenants and agreements herein contained shall inure to and be binding upon Lessor Huggins, its heirs, devisees, legal representatives, successors and assigns, and Lessee City, its successors and assigns; provided such reference to assigns is not intended to imply or grant any right on the part of either party to assign this lease. (b) Incorporation of Exhibits. All exhibits, schedules and attachments referred to in this lease are hereby incorporated by reference for all purposes as fully as if set forth at length herein. This lease constitutes the entire agreement of the parties with respect to the subject mater hereof, and all prior correspondence, memoranda, agreements or understandings (written or oral) with respect hereto are merged into and superseded by this lease. 12 This lease is executed and delivered effective as of the date and year first above written. LESSOR HUGGINS-THREE, L.P., a Texas limited partnership By: I 6 Billy ugg I�Hins P i nt LESSEE CITY OF ROUND ROCK, TEXAS By: ATTEST: au:5-6131Ae.nafitAii_ Christine R. Martinez, City Secretary APPR V D AS TO FO Stephan . Sheets, City Attorney 13