HomeMy WebLinkAboutPR 22288: EDC, LEASE OF OFFICE SPACE TO SOLCO GROUP, LLC r:.7)_____,,:: 0
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PORT*ARThUR
ONOMIC DEVELOPMENT CORPORATION
INTEROFFICE MEMORANDUM
Date: December 10, 2021
To: The Honorable Mayor and City Council
Through: Ronald Burton, City Manager �1
From: George Davis, Interim PAEDC Chief Executive Officer Cl. , Pi.4 ( Cn D.-v,�
RE: P.R. 22288—A Resolution authorizing the lease of office space located within 501
Procter Street by the City of Port Arthur Section 4A Economic Development
Corporation to the Solco Group,LLC
Introduction:
The intent of this Agenda Item is to seek City Council's authorization for the lease of office
space located within 501 Procter Street by the City of Port Arthur Section 4A Economic
Development Corporation to the Solco Group, LLC.
Background:
The PAEDC is the owner of the office building at 501 Procter St. and the Solco Group has
submitted a Letter of Intent to lease Suite 321,402 square feet,within 501 Procter St. on a month
to month basis. The PAEDC Board of Directors approved a Rental Agreement with the Solco
Group at a rate of$562.80($1.40 per square foot)per month.
Budget Impact:
None
Recommendation:
It is recommended that the City Council of the City of Port Arthur authorize the lease of office
space located within 501 Procter St.by the City of Port Arthur Section 4A Economic
Development Corporation to the Solco Group, LLC.
P. R. No.22288
12/7/2021 KVM
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE LEASE OF OFFICE
SPACE LOCATED WITHIN 501 PROCTER STREET BY THE
CITY OF PORT ARTHUR SECTION 4A ECONOMIC
DEVELOPMENT CORPORATION TO THE SOLCO GROUP,
LLC
WHEREAS, the City of Port Arthur Section 4A Economic Development Corporation
(the"PAEDC") is the owner of the office building located at 501 Procter Street; and
WHEREAS, The Solco Group, LLC ("Solco") has submitted a Letter of Intent to lease
Suite 321, 402 sq. ft. of space on the second floor of the building at 501 Procter St. from the
PAEDC as they prepare to move their corporate headquarters to the City of Port Arthur as
denoted in Exhibit"A"; and
WHEREAS, the PAEDC Board of Directors, at their Regular Board Meeting of
December 6, 2021, deemed it in the best interest of the citizens of Port Arthur to lease the office
space located on the third floor of the building at 501 Procter Street to Solco at a monthly rental
rate of $562.80 ($1.40 per square foot) not to exceed twelve months as detailed in the Short
Term Rental 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 Short Term Rental Agreement with Solco in substantially the
same form as the Agreement 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., 2021,
at a Meeting of the City Council of the City of Port Arthur, Texas, by the following vote:
AYES:
Mayor
Councilmembers
NOES:
Thurman Bartie,Mayor
ATTEST:
Sherri Bellard, City Secretary
APPROVED:
kLA \_( ' f
George avis, Interim PAEDC CEO
APPROVED AS TO FORM:
rank aria, ED Attorney
Page
APPROVED AS TO FORM:
/VaL
Valecia R. Tizeno, Attorney
Page 3
EXHIBIT "A"
IF'S
THE SOLCO GROUP, LL C
AVIATION AND TRANSPORTATION PLANNING/ENGINEERING/RESEARCH/CONSULTING
Mr. George Davis, Interim Director
Port Arthur Economic Development Corporation
501 Procter St., STE 100
Port Arthur, TX 77640
409-963-0579
November 16, 2021
Subject: Notice of Intend to Lease Office Space
Dear Mr. Davis,
The Solco Group, LLC (TSG) is developing plans to move the corporate headquarters
to the City of Port Arthur, Texas. Please accept this letter as our intent to lease a small
office from the Port Arthur Economic Development Corporation.
We are interested in leasing office suite #321 , from the PAEDC, at your best possible
lease rate, for approximately 4 months. This will be a temporary office location for TSG
until new office space is available at the upcoming PAEDC Center for Business and
Community Development Press Building.
We hope to utilize all of the available PAEDC amenities including periodic use of the
conference rooms (when available), common area breakrooms, WIFI, etc. If approved,
we plan to take occupancy immediately. Contact us at 409-237-0200 if you have any
questions. Thank you for all you do for the City of Port Arthur.
Sincerely,
mac" -t .�
Kelvin L. Solco, PE, MBA
The Solco Group, LLC
Planning - Engineering - Research - Consulting
A Texas certified ACDBE/DBE/SBE/HUB/MBE firm
Beaumont, TX 77720
Office: 409-237-0200
Cell: 817-564-6895
Fax: 409-237-0700
THE SOLCO GROUP, LLC-PO Box 22001 Beaumont, Texas 77720
EXHIBIT " B "
SHORT TERM RENTAL AGREEMENT
THIS SHORT TERM RENTAL AGREEMENT(the"Agreement")made and entered into
on the day of , 2021 (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, Port Arthur, Texas 77640 and Solco Group,LLC. for office space
(hereinafter referred to as "Tenant"), whose address is
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 third floor of the 501 Procter Building 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 not exceeding twelve (12) months from the effective date.
This Agreement may be terminated for any reason by either party by providing a thirty (30) day
written notice.
SECTION 2. The Tenant agrees to pay$562.80 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 Solco Group, LLC.
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:
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City of Port Arthur Section 4A
Economic Development Corporation
501 Procter
Port Arthur, Texas 77640
To Tenant: Solco Group, LLC
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. Notwithstanding any contrary provisions of this
Lease, Landlord shall not be responsible for any loss of or damage to property of Tenant located
on the Leased Premises, except where caused by the willful act or omission or negligence of
Landlord , or Landlord's agents, employees or contractors.
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.
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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.
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. INDEMNITY AND PUBLIC LIABILITY. THE TENANT SHALL
SAVE LANDLORD HARMLESS AND INDEMNIFY LANDLORD FROM ALL INJURY,
LOSS,CLAIMS OR DAMAGE TO ANY PERSON OR PROPERTY WHILE ON THE LEASED
PREMISES, UNLESS CAUSED BY THE WILLFUL ACTS OR OMISSIONS OR GROSS
NEGLIGENCE OF LANDLORD, ITS EMPLOYEES, AGENTS, LICENSEES OR
CONTRACTORS. TENANT SHALL MAINTAIN, WITH RESPECT TO THE LEASED
PREMISES.
SECTION 17. Applicable Law- All matters pertaining to this agreement (including its
interpretation, application, validity, performance and breach) in whatever jurisdiction action may
be brought, shall be governed by, construed and enforced in accordance with the laws of the State
of Texas. The parties herein waive trial by jury and agree to submit to the personal jurisdiction and
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venue of a court of subject matter jurisdiction located in Jefferson County, State of Texas. In the
event that litigation results from or arises out of this Agreement or the performance thereof, the
parties agree to reimburse the prevailing parry's reasonable attorney's fees,court costs,and all other
expenses, whether or not taxable by the court as costs, in addition to any other relief to which the
prevailing party may be entitled.
SECTION 18. 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.
LANDLORD:
CITY OF PORT ARTHUR SECTION 4A
ECONOMIC DEVELOPMENT CORPORATION
Board President; Date:
Board Secretary; Date:
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TENANT:
SOLCO GROUP,LLC
By: Date:
(Tenant's acknowledgment)
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