HomeMy WebLinkAboutPR 20444: LEASE OF OFFICE SPACE LOCATED WITHIN 501 PROCTER STREET Interoffice
MEMORANDUM
To: Mayor, City Council, CMger
From: Floyd Batiste, CEO
Date: September 18, 2018
Subject: P. R.No. 20444; Council Meeting of September 28, 2018
ATTACHED IS PROPOSED RESOLUTION NO. 20444. A
RESOLUTION AUTHORIZING THE LEASE OF OFFICE
SPACE LOCATED WITHIN 501 PROCTER STREET BY THE
PORT ARTHUR SECTION 4A ECONOMIC DEVELOPMENT
CORPORATION TO THE CITY OF PORT ARTHUR.
P. R. No. 20444
9/18/2018 FB
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE LEASE OF OFFICE
SPACE LOCATED WITHIN 501 PROCTER STREET BY THE
PORT ARTHUR SECTION 4A ECONOMIC DEVELOPMENT
CORPORATION TO THE CITY OF PORT ARTHUR.
WHEREAS, the City of Port Arthur Section 4A Economic Development Corporation
(the"PAEDC") is the master tenant of the office building located at 501 Procter Street; and
WHEREAS, the City of Port Arthur, has submitted a Letter of Intent to lease suite 106,
and open space on the second floor approximately 300 sq. ft. of space at 501 Procter St. from the
PAEDC at a fixed base monthly rental rate of $300.00 ($1.10 per square foot) as denoted in
Exhibit"A"; and
WHEREAS, the PAEDC Board of Directors, at their Regular Board Meeting of
September 10, 2018, deemed it in the best interest of the citizens of Port Arthur to lease the
office space of suite 106 and open space on the second floor of the building at 501 Procter Street
to the City of Port Arthur as detailed in the Commercial Lease Agreement attached hereto as
Exhibit"B".
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PORT ARTHUR,TEXAS:
Section 1. That the facts and opinions in the preamble are true and correct.
Section 2. That the Port Arthur Section 4A Economic Development Corporation is
herein authorized to execute a Commercial Lease Agreement with the City of Port Arthur in
substantially the same form as attached hereto as Exhibit"B".
Section 3. That a copy of the caption of this Resolution shall be spread upon the Minutes
of the City Council.
READ, ADOPTED AND APPROVED on this day of A.D., 2018,
at a Meeting of the City Council of the City of Port Arthur, Texas, by the following vote:
AYES:
Mayor
Councilmembers
NOES: .
Derrick Freeman, Mayor
ATTEST:
Sherri Bellard, City Secretary
APPROVED:
' EIP ICr- t -- te--
Floyd Batiste, 'AEDC CE 0
Page 2
APPROVED AS TO FORM:
Guy N. Goodson, PAEDC Attorney
Page 3
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Exhibit " B "
RENTAL AGREEMENT
THIS RENTAL AGREEMENT (the "Agreement")made and entered into on the day
of , 2018 (the "Effective Date"), by and between the City of Port Arthur Section
4A Economic Development Corporation (hereinafter referred to as Landlord), whose address is
501 Procter, Suite 100, Port Arthur, Texas 77640 and City of Port Arthur for office space
(hereinafter referred to as "Tenant"), whose address is 444 4T' Street, Port Arthur, Texas 77640.
WITNESSETH:
FOR AND IN CONSIDERATION of the Agreement, covenants, and conditions
hereinafter stipulated to be paid and performed by Tenant, Landlord does hereby demise and let
unto Tenant and Tenant does hereby accept and let from Landlord, the following described
property situated in the City of Port Arthur, County of Jefferson, Texas, described as follows, to-
wit:
Office space located on the first floor of the 501 Procter Building and space located on the
second floor as described in Exhibit "A" attached to this Agreement.
SECTION 1. The term of this Agreement shall commence on the Effective Date and
continue on a month to month basis. This Agreement may be terminated by either party by a thirty
(30) day written notice.
SECTION 2. The Tenant agrees to pay $300.00 per month to the Landlord for the demised
premises, pursuant to the following described terms and conditions. Payment will be made
monthly with the payment due by the 5th day of the month.
SECTION 3. Tenant shall have, hold and use the demised premises for the purposes of
conducting the business activities of City of Port Arthur
SECTION 4. Tenant will, at all times, attempt to act in a prudent manner to conserve the
amount of utilities consumed. Landlord shall furnish and pay for, as and when due, all utilities
consumed or used incident to the demised premises, such as electricity, gas, water, sewer and all
other public utilities of every nature, kind and description used in said premises.
SECTION 5. Tenant will, at all times, take good and ordinary care and precaution for the
preservation of the demised premises. Landlord shall furnish janitorial services.
SECTION 6. Any notice required to be given by either party to the other party under the
terms of this Agreement shall be served upon such party by United States Certified Mail as follows:
To Landlord: Floyd Batiste
City of Port Arthur Section 4A
Economic Development Corporation
1
501 Procter, Suite 100
Port Arthur, Texas 77640
To Tenant: City of Port Arthur
SECTION 7. Tenant shall not, without the previous consent in writing of the Landlord,
assign this Agreement or sublet the whole or any part of the demised premises or permit the
demised premises or any part thereof to be used or occupied by others. In the event Landlord
consents to any such assignment or subletting, Tenant shall remain and continue primarily liable
for the performance of the covenants and obligations on his part to be performed under this
Agreement during the term of the lease.
SECTION 8. Landlord agrees to keep the building improvements erected on the demised
premises insured against loss or damage by fire and all standard extended coverage perils for the
full, fair insurable value thereof in a solvent and responsible company or companies authorized to
do business in the State of Texas.
SECTION 9. At the expiration of the tenancy hereby created and any extended term
thereof, Tenant shall surrender the Agreement premises in the same condition as the Agreement
premises were in upon delivery of possession thereto under this Agreement, reasonable wear and
tear excepted, and damage by unavoidable casualty excepted, and Tenant's obligation to observe
or perform this covenant shall survive the expiration or other termination of this Agreement.
SECTION 10. The Landlord covenants to keep and maintain, at Landlord's expense, said
demised premises and facilities in a state of tenantable repair during the term of the Agreement;
provided,however,that Landlord shall not be called upon to make any such repairs occasioned by
the acts of negligence of the Tenant,its agents,patrons,or employees,except where covered under
Landlord's fire and extended coverage insurance. Tenant agrees to maintain renter's insurance and
provide proof of same to Landlord upon request.
SECTION 11. Should the demised office building be totally or substantially destroyed by
fire,the elements or otherwise, so as to render the demised office building untenable, either party
shall have the option to cancel the remaining portion of this Agreement for any extended term or
period hereof. Tenant shall have no obligation to pay rent of any nature so long as the demised
office building is untenable.
SECTION 12.
a. Failure on the part of the Tenant to pay any installment of rent as above set out as and
when the same becomes due and payable,or failure of Tenant promptly and faithfully to keep and
perform each and every covenant agreed and stipulated herein on the part of the Tenant to be kept
and performed, shall, at the option of the Landlord, cause a forfeiture of this Agreement.
2
b. Nothing contained in the foregoing shall be construed to waive either party's right to
cancel this Agreement in the event of any forfeiture or breach on the part of the other party hereto,
all of which rights or cancellation are herein specifically reserved.
c. Prior to a declaration of forfeiture for default in payment of rent or additional rent,
Landlord shall give to Tenant a Notice in writing thirty (30) days prior thereto in the manner
provided by Section 6 hereof, during which time Tenant may purge itself on the grounds of
forfeiture by paying such rent.
d. As to default by Tenant in performing covenants other than for payment of rent prior to
a declaration of forfeiture, Landlord shall give to Tenant a notice in writing 30 days prior thereto
in the manner provided for by Section 6 during which time Tenant may purge itself on the grounds
of forfeiture by curing the stated grounds of forfeiture within such 30 days or within such longer
term as may be reasonably necessary to cure such defect.
SECTION 13. Tenant agrees to pay any and all taxes and fees required by the State of
Texas, Jefferson County, and/or the City of Port Arthur associated with running its business.
SECTION 14. Landlord covenants that the Tenant, on paying the rent herein reserved and
performing the covenants and agreements hereof, shall peaceably have, hold, and enjoy the
demised premises and all rights, easement, and privileges belonging or otherwise pertaining
thereto, during the full term of this Agreement, and any extension thereof
SECTION 15. Landlord will provide paved parking area sufficient for the operation of
Tenant's business on the Agreement premises, without additional cost to Tenant. Landlord will
maintain such parking lot throughout the term of this Agreement and any extension thereof in a
serviceable condition. Landlord agrees to keep all parking areas.provided to Tenant clean and free
of trash and debris.
SECTION 16. Applicable Law - This contract shall be governed by and construed in
accordance with the laws of the State of Texas,excluding its conflict and choice of laws provisions,
and any litigation with respect thereto shall be brought in the courts of this state.
SECTION 17. Entire Agreement - The parties hereto acknowledge that this Agreement
sets forth the entire Agreement and understanding of the parties hereto as to the subject matter
hereof, and shall not be subject to any change or modification except by the execution of a written
instrument subscribed to by the parties hereto.
IN WITNESS WHEREOF, this Rental Agreement has been duly executed in duplicate
originals on the day and date hereinabove set forth.
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LANDLORD:
CITY OF PORT ARTHUR SECTION 4A
ECONOMIC DEVELOPMENT CORPORATION
Board President; Date:
Board Secretary; Date:
4
TENANT:
CITY OF PORT ARTHUR
By: ; Date:
(Tenant's acknowledgment)
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Disaster Recovery Housing Development Center
Disaster Recovery Housing Development Center —designed to administer disaster recovery housing
resources utilizing the Case Management Approach and offered in a One-Stop-Shop located in the
PAEDC Office Building where citizens apply for funding and are provided technical assistance guiding
them through the process. Center functions are divided into five areas below.
Disaster Recovery Housing Development Center Function:
Case Management Application Benefit Determination Housing Solution Development
Outreach-Marketing Program Solution Program Specific Funding Builder/Financing Contracting
Contract
Execution
Application
Preliminary *Disaster
Disaster Intake Underwriting Lot Selection Assistance
*Downtown
Humatarian
Housing Assistance
Services Case
Preliminary Program Bulider- *Mortgage Agreement
Management Specific
Qualifications Rehabilitation *Builder Contract
Benefits Contractor *Rehabilitation
Determination Contract
DRH-DHD Center Program Selection
Outreach - Decision
Public Meetings Pre- Construction
Mortgage
Qualifications
Benefits Lender
for Public and Mortgage Closing
Marketing and Determination Private Selection
Social Media
Programs and Application
Move in
Model Home Construction
Sales and Management
Design Maximum Design Studio
Studio Contractor Subsidy Home Design Grants
Assessment Caculation Management and
Regulatory
Reporting
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Draft City of Port Arthur Disaster Recovery Housing Development Center and Buyout Program August 2, 2018
Disaster Recovery Housing Development Center
Client Process:
The Client will access funding utilizing four stages of assistance. Disaster and Humanitarian Services
will assist clients in stage one with loss-damage assessment, determination of how to best address
their need, and assistance with documentation of benefits already received and documentation
needed for accessing programs. The Development Center will guide clients through stage 1 and 2
assisting with disaster program access-applications, and service delivery.
Client Process
• Disaster and • Disaster Recovery
Humatarian °� Downtown
Services Housing
Development
Center
Case Management
Loss-Damage Contract Executions
Assessment Construction
Benefits Received Management
Assessment(repair, Mortgage Closings
reconstruction,new Client Move In
construction,rental
Application Intake Lot Selection
Specific Benefit Builder Selection
Determination
Mortgage Lender and
Preliminary
Underwriting Disaster Program
Applications
Pre-Qualifications-
House Design-
Disaster Recovery Upgrages
• Disaster Recovery Downtown Final Cost Model Home
Downtown Buyout Sales and Design
Housing TDHCA Center
Development I
Center I
3
Draft City of Port Arthur Disaster Recovery Housing Development Center and Buyout Program August 2, 2018
Disaster Recovery Housing Development Center
One-Stop-Shop for Disaster Recovery Housing
Funding Sources:
Funding available for disaster recovery include FEMA, CDBG-R funding administered by SETRPC and
Texas GLO; locally funded initiatives including CDBG and HOME Program Entitlement, Legacy CDC-
PAEDC Downtown Housing; and the leveraging of private financing and foundation support.
1 Downtown Housing PAEDC 4 B Referendum for 30 Units /Infrastructure
City CDBG — HOME Program Downtown Housing
1 TDHCA Disaster Recovery HOME Program
4- CDBG-R Disaster Recovery Buyout Program
4- GLO Multifamily Disaster Recovery Assistance
4- CDBG, PAEDC, and CDBG-R Infrastructure Funding for Downtown Housing
4- CDBG-R Housing and Unmet Need Funding (next round of funding)
EDA Disaster Recovery Funding Port Arthur News Building and Business Assistance
4. Rebuild Texas Foundation Disaster Recovery Grants for the Saint Mary's and Gilliam Parks
Programs:
Program resources will be provided through the above funding sources. While each program
funding source will have individual program guidelines, applications and may require unique
documentation, the Development Center will assist in determining which programs best meet the
applicants' needs and create a benefit proposal to address those needs.
Disaster Recovery Disaster Recovery Disaster Assistance New Construction
Homebuyer Disaster Rehabilitantion and Renter 1st Time Home Home Purchase
Assistance Program Assistance Reconstruction Buyer and Homebuyer
Downpayment and Buyout Program Assistance Mortgage Assistance Assistance
Closing Cost Program Program Program
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Draft City of Port Arthur Disaster Recovery Housing Development Center and Buyout Program August 2, 2018