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HomeMy WebLinkAboutO-1571ORDINANCE NO. 1571 BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF FAIRHOPE, ALABAMA, AS FOLLOWS: SECTION 1. It is hereby established and declared that the following described real property of the City of Fairhope, Alabama, is not needed for public or municipal purposes during the term of this lease, to -wit: The upstairs portion of the Fairhope Public Library on Fairhope Avenue which includes nursing lab, small class room, large class room, small office and small storage area. SECTION 2. The City of Fairhope, Alabama, having received an offer from Faulkner State Community College to lease that real property described in Section 1, above, it is hereby declared to be in the best interest of the public and the City of Fairhope, Alabama, to lease said real property to Faulkner State Community College under the following terms and conditions, to -wit: The term of this lease agreement shall begin on April 1, 2016 and shall extend for a period of three (3) year. Lessee is hereby granted and shall, if not at the time in default under this lease, have an option to renew this lease for two additional periods of three (3) years from the termination date hereof. At the end of the first and second three year term the Lessee shall have the option to extend the lease another three years, but Lessor reserves the right to negotiate the rent at the time of the exercise of each renewal option. Lessee shall pay $2,200.00 per month as rent beginning on April 15, 2016 and continuing thereafter monthly until the end of the lease term, which lessee agrees to pay to LESSOR at P.O. Drawer 429, Fairhope, Al 36533, or at such other place or places as LESSOR may from time to time designate. Lessee shall during the term hereof pay all charges for telephone, gas, electricity, sewage, and water used in or on the leased premises. SECTION 3. Pursuant to the authority granted by Section 11-47-21 of the Code of Alabama of 1975, the Mayor of the City of Fairhope, Alabama, is hereby directed to execute said lease agreement in the name of the City of Fairhope, Alabama. SECTION 4. The sections, paragraphs, sentences, clauses and phrases of this ordinance are severable, and if any phrase, clause, sentence, paragraph or section of this ordinance shall be declared unconstitutional by a court of competent jurisdiction, then such ruling shall not affect any other paragraphs and sections, since the same would have been enacted by the municipality council without the incorporation of any such unconstitutional phrase, clause, sentence, paragraph or section. SECTION 5. This ordinance shall take effect immediately upon its due adoption and publication as required by law. ADOPTED THIS 28TH DAY OF MARCH, 2016 ATTEST: Li4AHanks, M M C City Clerk r i MUNICIPAL LEASE AGREEMENT This Lease Agreement is made and entered into this � day of , 2016, at Fairhope, Alabama, by and between FAULKNER STATE COMMUNITY LLEGE, a State of Alabama educational institute, hereinafter referred to as "Lessee," and THE CITY OF FAIRHOPE, ALABAMA, a municipal corporation, hereinafter referred to as "Lessor." The Lessee is entering into this lease on behalf of James H. Faulkner State Community College. ARTICLE 1. DEMISE, DESCRIPTION, USE, TERM AND RENT Lessor leases to Lessee, and Lessee leases from Lessor, that certain property, hereinafter called the "leased premises," situated in Fairhope, Baldwin County, Alabama, and described as follows: The upstairs portion of the Fairhope Public Library on Fairhope Avenue which includes nursing lab, small class room, large class room, small office and small storage area. to be used as classrooms with uses normally incident thereto and for no other purpose, for the term of three (3) years commencing on April 1, 2016, and ending April 1, 2019. ARTICLE 2. RENT Lessee shall pay $2,200.00 per month as rent beginning on April 15, 2016 and continuing thereafter monthly until the end of the lease term. ARTICLE 3. INSURANCE Lessee's Obligation Lessee agrees to and shall, within 15 days from the date hereof, secure from a good and responsible company or companies doing insurance business in the State of Alabama, and maintain during the entire term of this lease, the following coverage: (1) General Liability and Automobile Liability coverage in the amount of $1,000,000 and shall name Lessor as an additional loss payee. The coverage shall be furnished by a company with an A.M. Best rating of "A" or better. (2) Lessee shall be responsible for insurance on the portion of the library premises used and leased by lessee. Lessee shall be responsible for any and all claims, actions, suits, demands, damages and injuries arising from any loss of life, bodily or mental injury or property damage arising from any occurrence in or upon the leased premises, and Lessee shall hold Lessor harmless there from. Proof of Coverage The original policies may be retained by the insured, but the Lessor shall have the right to inspect any and all such policies, and the insured, on demand, agrees to furnish the other party proof of payment of the premium or premiums on any such policies. Protection Against Cancellation Lessee must also give proof to Lessor, pursuant to the paragraph above, that each of the policies provided for in this Article expressly provides that the policy shall not be cancelled or altered without thirty (30) days' prior written notice to the Lessor. Failure to Secure If Lessee at any time during the term hereof should fail to secure or maintain the foregoing insurance, the Lessor shall be permitted to obtain such insurance in the defaulting parry's name or as the agent of the defaulting party and shall be compensated by the defaulting party for the cost of the insurance premiums. The defaulting party shall pay the other interest on paid insurance premiums at the rate of ten percent (10%) per annum computed from the date written notice is received that the premiums have been paid. ARTICLE 4. UTILITIES Lessee shall during the term of the lease pay for the provision of telephone, gas, electricity, sewage and water services a pro-rata amount equivalent to 8.9% of the Lessor's costs each month for these services for the Fairhope Public Library at large. This is the percentage of space presently occupied by the College. ARTICLE 5. WASTE AND NUISANCE Lessee shall not commit, or suffer to be committed, any waste on the leased premises, nor shall it maintain, commit, or permit the maintenance or commission of any nuisance on the leased premises or use the leased premises for any unlawful purposes. ARTICLE 6. REPAIRS Lessee agrees to, at the Lessee's own costs, keep the leased premises in good order and repair, reasonable wear and tear excepted. Lessee further agrees to, at the Lessee's own costs, keep the leased premises clean, and to repair or replace all broken or damaged doors, windows, plumbing fixtures and pipes, floors, walls, stairways, railings, or other portions of the leased premises. Lessee agrees to pay its pro-rata share of the cost of maintenance of the leased premises. 2 ARTICLE 7. ALTERATIONS, IMPROVEMENTS, AND FIXTURES Lessee shall have the right to improve, add to, or alter the leased premises and to install fixtures thereon with the prior written consent of the Lessor. Improvements Lessee with permission from Lessor, after submitting written request outlining improvements and/or alterations, shall have the right at Lessee's own cost and expense from time to time during the term' or any extended term of this lease to construct on the leased premises such improvements, and make such alternations, additions, and changes therein as Lessee deems necessary or convenient for Lessee's purposes, and Lessee shall be permitted from time to time during and within thirty (30) days after expiration or sooner termination of the term of this lease to remove any such building or other improvements erected or made by Lessee; provided, however, that the Lessee shall repair any damages to the leased premises caused by removal and further provided that any building or improvements that are not removed by Lessee on or within thirty (30) days after expiration or sooner termination of the term or any extended term of this lease shall be deemed abandoned by Lessee and shall become the absolute property of Lessor without compensation to Lessee, and Lessee shall not be required on such abandonment to restore the premises to their present condition. ARTICLE 8. QUIET POSSESSION Lessor shall, on the commencement date of the term of this lease, place Lessee in quiet possession of the leased premises and shall secure the Lessee in the quiet possession thereof against all persons lawfully claiming possession during the entire lease term and each extension of the lease. ARTICLE 9. DELIVERY OF POSSESSION If Lessor shall be unable to deliver possession of the leased premises on the commencement date of the term hereof, Lessor shall not be liable to Lessee for any damage caused thereby, nor shall this lease thereby become void or voidable, nor shall the term hereof in any way be extended, but in such event Lessee shall not be liable for any rent herein reserved until such time as Lessor can and does deliver possession. ARTICLE 10. TERMINATION OR EXTENSION Option to Renew or Extend Lessee is hereby granted and shall, if not at the time in default under this lease, have an option to renew this lease for two additional periods of three (3) years from the termination date hereof. At the end of the first and second three year term the Lessee shall have the option to extend the lease another three years, but Lessor reserves the right to negotiate the rent at the time of the exercise of each renewal option. 3 How Exercised These option shall be exercised only by Lessee's delivering to Lessor in person or by United States registered or certified mail on or before sixty (60) days before the end of the lease term, written notice of Lessee's election to renew. Effect of Holding Over In the event Lessee does not renew this lease as herein provided, and holds over beyond the expiration of the term hereof, such holding over shall be deemed a month -to -month tenancy only. ARTICLE 11. DEFAULTS AND REMEDIES Default of Lessee If Lessee shall allow the rent to be in arrears more than thirty (30) days after written notice of such delinquency, or shall remain in default under any other condition of this lease for a period of fifteen (15) days after written notice from Lessor, or should any other person than Lessee secure possession of the premises, or any part thereof, by reason of any receivership, bankruptcy proceedings, or other operation of law in any manner whatsoever, Lessor may at Lessor's option, without notice to Lessee, terminate this Lease. Should Lessor be unable to relet after reasonable efforts to do so, or should such monthly rental be less than the rental Lessee was obligated to pay under this lease, or any renewal thereof, plus the expense of reletting, then Lessee shall pay the amount of such deficiency to Lessor. ARTICLE 12. INSPECTION BY LESSOR Lessee shall permit Lessor and Lessor's agents to enter into and upon the leased premises at all reasonable times for the purpose of inspecting the same or for the purpose of maintaining or making repairs or alterations to the building. ARTICLE 13. ASSIGNMENT AND SUBLEASE Assignment and Subletting by Lessee Lessee shall not assign this lease nor sublet all or any portion of the leased premises without the prior written consent of the Lessor. Assignment by Lessor Lessor is expressly given the right to assign any or all of Lessor's interest under the terms of this lease. El ARTICLE 14. MISCELLANEOUS Rights and Remedies Cumulative The rights and remedies provided by this lease are cumulative and the use of any one right or remedy by either party shall not preclude or waive its right to use any or all other remedies. Said rights and remedies are given in addition to any other rights the parties may have by law, statute, ordinance, or otherwise. Waiver of Default No waiver by the parties hereto of any default or breach of any term, condition, or covenant of this lease shall be deemed to be a waiver of any other breach of the same or any other terms, condition, or covenant contained herein. Excuse Neither Lessor nor Lessee shall be required to perform any term, condition, or covenant in this lease so long as such performance is delayed or prevented by any acts of God and any other cause not reasonably within the control of the Lessor or Lessee and which by the exercise of due diligence Lessor or Lessee is unable, wholly or in part, to prevent or overcome. Additional Terms and Conditions The following provisions shall take precedence over any and all contrary or conflicting_ provisions of the Agreement between the parties and shall govern the rights and obligations of the parties: 1. The relationship between the parties is that of independent contractors. Nothing contained herein shall be construed as creating any agency, partnership, joint venture, or other form of joint enterprise, employment, or fiduciary relationship between the parties and neither party shall have authority to contract for or bind the other party in any manner whatsoever. 2. This Agreement constitutes the sole and entire Agreement of the parties to this Agreement with respect to the subject matter contained herein, and supersedes all prior and contemporaneous understandings, negotiations, and agreements, both oral and written, with respect to such subject matter. This Agreement may only be amended or otherwise modified by an agreement in writing signed by the parties hereto. No waiver by any party of any of the provisions contained in this Agreement shall be effective unless explicitly set forth in writing and signed by the party so waiving. In addition, no failure to exercise, or any delay in exercising any rights or remedies provided hereunder shall operate or be construed as a waiver of said rights or remedies; nor shall any waive of any rights or remedies hereunder be construed as a waiver of other or future rights or remedies hereunder. 4. The Agreement shall be governed by and construed in accordance with the laws of the State of Alabama without giving effect to any choice -or conflict -of -laws provisions or rules (whether of the 5 State of Alabama or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than those of the State of Alabama. LESSOR understands, acknowledges, and agrees that its sole and exclusive forum for any claim or assessment that may arise from or relate to this Agreement is to file a claim with the Board of Adjustment of the State of Alabama. 5. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same Agreement. 6. By signing this Agreement, the contracting parties affirm, for the duration of the Agreement that they will not violate federal immigration law or knowingly employ, hire for employment, or continue employ an unauthorized alien within the State of Alabama. Furthermore, a contracting party found to be in violation of this provision shall be deemed in breach of the Agreement and shall be responsible for all damages resulting therefrom. 7. In the event of the fund from which payment under this Agreement is to be made, the Agreement will be subject to termination by written notice from the Lessee to the Lessor. It is understood that there is no entitlement to any state merit system or Students First Act benefit to anyone solely as a result of working under the Agreement. IN WITNESS WHEREOF, the undersigned Lessor and Lessee hereto execute this Agreement as of the day and year first above written LESSOR: THE CITY OF FAIRHOPE A MUNICIPAL CORPORATION RUN LESSEE: FAULKNER STATE COMMUNITY COLLEGE A STATE -OF ALABAMA�F-DUCATIONAL INSTITUTE By: W _ Gwranch, President r `/ APPROVED: Makk X a c , Chancellor Alabama Department of Postsecondary Education 0 STATE OF ALABAMA COUNTY OF BALDWIN I, L-SICL- , a Notary Public in and for said County, in said State, hereby certify that TIMOTHY M. KANT whose name as Mayor of THE CITY OF FAIRHOPE, a municipal corporation, is signed to the foregoing Commercial Lease Agreement, and who is known to me, acknowledged before me on this day, that being informed of the contents of said Lease Agreement he, as such officer, and with full authority, executed the same voluntaril d as the act of said municipal corporation, acting in its capacity as Mayor as aforesaid. -i«! t't�ti; ; Given under my hand this the 1 day of 2016. ���'�'•• ��' ej ;co r TARY P BLIC My Commission Expires: �� * A t 0% %�`�� STATE OF ALABAMA COUNTY OF BALDWIN T_ �I►YlUEX 1Y\ J 14— _ a Nntary Puhlic in and fnr -.aid Ocimty in cairl gtate_ hereby certify that GARY BRANCH whose name as President of FAULKNER STATE COMMUNITY COLLEGE, a State of Alabama educational institute, is signed to the foregoing Lease Agreement and who is known to me, acknowledged before me on this day that, being informed of the contents of the Lease Agreement, he, as such officer and with full authority, executed the same voluntarily for and as the act of said University. Given under my hand this the v day of / ► l 2016. k!"a Prepared by: MARION E. WYNNE City Attorney 221 Fairhope Avenue Post Office Box 1367 Fairhope, Alabama 36533 (251) 928-1915 NOTARY PUBLIrC My Commission Expires: a0 7