The URL can be used to link to this page

Home My WebLink AboutPR 22629: LEASE WITH AURORA CAPITAL HOLDINGS LLC P.R. No. 22629 06/10/2022 gt RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A FIRST AMENDMENT TO THE LEASE WITH AURORA CAPITAL HOLDINGS LLC, A DELAWARE LIMITED LIABILITY CORPORATION FOR THE PROPERTY LOCATED AT 449 AUSTIN AVENUE WHEREAS, pursuant to Ordinance No. 20-79, the City Council authorized the City Manager, or his designee, to sell the property located at 449 Austin Avenue to Aurora Capital Holdings LLC, a Delaware Limited Liability Corporation; and WHEREAS, pursuant to Resolution No. 20-360, the City Council authorized the City Manager to enter into a Lease Agreement with Aurora Capital Holdings LLC for the property located at 449 Austin Avenue for a period of eighteen (18) months to facilitate the relocation of the City's Health Department to a new location; and WHEREAS, the City of Port Arthur has been delayed in its relocation efforts and has requested an extension of the term of the Lease for twelve months ; and WHEREAS, Aurora Capital Holdings LLC is willing to extend the term of the Lease for one year under the same terms, including the abatement of rent pursuant to Article 4.1 of the Lease, and credit the HVAC Expense against future rent under the Lease as amended by the Amendment, attached in substantially the same form as Exhibit "A". NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: Section 1. That the facts and opinions in the preamble are true and correct. Section 2. That the City Council hereby authorizes the City Manager to enter into a First Amendment to Lease Agreement with Aurora Capital Holdings LLC for the property located at 449 Austin Avenue, in substantially the same form as attached hereto as Exhibit 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, this day of , 2022 AD, at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following vote: AYES: Mayor: , Councilmembers: , • NOES: . Thurman Bill Bartle, Mayor ATTEST: Sherri Bellard, City Secretary APPROVED AS T FORM: r Valecia R. Tizeno, City ttorney APPROVED FOR ADMINISTRATION: Ronald Burton, City Manager EXHIBIT "A" FIRST AMENDMENT TO LEASE AGREEMENT Health Department Premises— 449 Austin Avenue, Port Arthur, Texas 77640 This First Amendment to Lease Agreement ("Amendment") is entered into effective as of June 17, 2022 (the "Effective Date"), by and between AURORA CAPITAL HOLDINGS, LLC, a Delaware limited liability company ("Landlord"), and CITY OF PORT ARTHUR, TEXAS ("Tenant"). RECITALS: A. Landlord and Tenant entered into that certain Lease Agreement with an effective date of December 17, 2020 ("Lease") and a term of eighteen (18) months. B. The Lease provided that rent payments would be abated during the original term of the Lease so long as Tenant was not in default. Tenant's monthly rent under the Lease has been abated fora total of eighteen (18) months ("Abated Rent"). C. Tenant intended to relocate from the Premises (defined in the Lease) prior to the expiration of the term of the Lease but has been delayed in its relocation efforts and has requested an extension of the term of the Lease for twelve (12) months. D. During the initial term of the Lease, Tenant expended the sum of $96,621.96 to replace the Heating, Ventilation, and Air Conditioning Water Chiller serving the Premises ("HVAC Expense") and has requested credit for that expense against rent owed under the Lease. E. Landlord is willing to extend the term of the Lease for one year under the same terms, including the abatement of rent pursuant to Article 4.1 of the Lease, and credit the HVAC Expense against future rent under the Lease as amended by this Amendment, and Tenant is willing to lease from Landlord, the Premises, for the purposes set forth herein, all in accordance with the terms and conditions set forth herein. NOW, THEREFORE, in consideration of the premises, the Recitals (which are incorporated herein by reference), the mutual benefits to be derived from this Amendment, the Lease as extended, and the representations, warranties, covenants and conditions herein contained, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 1. All provisions of and exhibits to the Lease are incorporated herein by reference and shall continue in force except as modified hereby and all defined terms used in this Amendment, unless otherwise defined herein, shall have the meaning ascribed to them in the Lease. 2. Article 3.1 of the Lease shall be deleted and replaced with the following: 3.1 Term. Subject to and upon the terms and conditions set forth in this Lease, the term of this Lease ("Term") shall commence on the Effective Date and shall expire on the date ("Termination Date")that is the earlier to occur of (i) June 30, 2023 or (ii) the date that is thirty (30) days following the date on which the Relocation Property opens to the public for Tenant's use. 3. Article 4.2 of the Lease shall be deleted and replaced with the following: 4.2 Holding Over. If Tenant does not surrender possession of the Premises at the end of the Term (as may be extended pursuant to Section 3.2 above), (i) Tenant shall be a tenant at sufferance, (ii) during such time of occupancy Tenant shall pay to Landlord the Rent, without abatement, offset, counterclaim or deduction, and (iii) for each month of such holdover, Tenant shall also pay to Landlord, as damages, an amount equal to one month's worth of Abated Rent. Such amounts shall be payable without further notice from Landlord. By way of illustration, during each month of Tenant's holdover hereunder, Tenant shall pay to Landlord the sum of $24,000.00, representing the sum of the Rent ($12,000.00) plus one month's worth of previously Abated Rent ($12,000.00). Rent that has been abated during the extended term of this Amendment shall be included in the definition Abated Rent. Provided however that, during each month of Tenant's holdover hereunder, Tenant shall be entitled to a credit for the HVAC Expense against Rent owed as follows: Credit Rent July 2023 $24,000.00 $0 August 2023 $24,000.00 $0 September 2023 $24,000.00 $0 October 2023 $24,000.00 $0 November2023 $ 622.00 $23,2378 [Signature Page Follows] 2 5076051.7 IN WITNESS WHEREOF, the parties hereto have duly executed this First Amendment to Lease Agreement effective as of the Effective Date. LANDLORD: AURORA CAPITAL HOLDINGS LLC, a Delaware limited liability company By: Name: Jay Hall Title: President TENANT: CITY OF PORT ARTHUR,TEXAS By: Name: Title: ATTEST: City Secretary (SEAL) APPROVED AS TO FORM City Attorney [Signature Page to First Amendment to Lease Agreement]