Loading...
HomeMy WebLinkAboutPR 18686: LEASE AND SALE, JERRY OLTERMARI AND CARL PARKER DBA CAJUN BABINS LTD ON PLEASURE ISLAND AND MONICA MOMIN P. R. No. 18686 11/04/14 gt RESOLUTION NO. A RESOLUTION GRANTING CONSENT TO THE ASSIGNMENT OF LEASE AND SALE BETWEEN JERRY OLTREMARI AND CARL PARKER, D/B/A CAJUN CABINS, LTD. , ON PLEASURE ISLAND, AND MONICA MOMIN WHEREAS, on October 21, 2014, the City of Port Arthur received a letter from Carl A. Parker requesting consent of Assignment and Sale by and between Jerry Oltremari and Carl Parker, d/b/a Cajun Cabins, Ltd. , and Monica Momin, a copy of which letter and lease dated February 20, 1992, are attached hereto as Exhibit "A"; and WHEREAS, it is in the best interest of the citizens of Port Arthur to grant consent to the Assignment and Sale, including all renewals thereafter, in substantially the same form as 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 request of Jerry Oltremari and Carl Parker, d/b/a Cajun Cabins, Ltd. , for consent to the Assignment and Sale, in substantially the same form as attached hereto as Exhibit "B", is herein approved. s.pr18686 Section 3 . That a copy of the caption of this Resolution be spread upon the Minutes of the City Council . READ, ADOPTED AND APPROVED on this day of A. D. , 2014, at a Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES: Mayor: Councilmembers : NOES: MAYOR ATTEST: CITY SECRETARY APPROVED AS TO FORM: CITY • 0' 0EY APPROVED FOR ADMINISTRATION: JOHN A. COMEAUX, P. E. INTERIM CITY MANAGER s.pr18686 EXHIBIT "A" s.pr18686 CARL A.PARKER THE DONALD W,DICKSON II ALLEN PARKER The Littlefield Quilling 1 Plaza,Te as 776 PARICER 1 OA s0 Sixth s Street,7 Suite 5 900 Pon Arthur,Texas 77642-5513 Austin,Texas 787,J1-36t�5 "Telephone:(409)985-8814 Te1.15)2)554-5744 tvlid-County:(409)729-51 11 AA Fax(513)322-3952 Facsimile:(409)085.2833 Email dii:kstat(tu .ts3ti1:3Qe nn www,U�eI9Arkcrlawtin n LAW• A, IRM October 21,2014 VIA FAX(409)983-8124 Ms. Val Tizeno, City Attorney City of Port Arthur Dear Val: Please have the city approve assignment of the leases on Jep's Island Emporium and Cajun Cabins Limited to Monica Momin. Also, as we discussed,please amend the lease on Jep's to a five year lease on the date you approve with a 5 year option for renewal. Sincerely, THE PARKER LAW FIRM ar A. er CAP/ps • Zoo/Zoo d 'o xed Wd 90:0O dllz AIOZ/IZ/100 EXHIBIT "B" s.pr18686 r CARL A.PARKER. J Do6AL.;,r ,DKk.;33N ALLEN PARKER The Littlefield Building I P11322 Square j � 106 East Sixth Suret,Salle 900 Port 0 'ort Art3t ',Testis 77642-5513 a actin,'Th:xas 78701-3W l' Tel.(312)554-5744 1e;3l;i�ne:(409)935-38=�: � '22-3452 Mid-Courtly:(40907'7-8111 Fax 1:13)3 -5111 t 1 i a3ail ; 'i 322-3952 Facsimile: uui Facsiinile:(409)935.2533 W'ww,11epacl;,,riaw170n.com LAW FIRM October 21,2014 VIA FAX(409)983-8124 Ms.Val Tizeno, City Attorney City of Port Arthur Dear Val: Please have the city approve assignment of the leases on Jep's Island Emporium and Cajun Cabins Limited to Monica Momin. Also, as we discussed,please amend the lease on Jep's to a five year lease on the date you approve with a 5 year option for renewal. Sincerely, THE PARKER LAW FIRM ar A. er CAP/ps ZOO/Z00 .d °N XVd Ihid 9090 dllOi @Z/IZ/100 EXHIBIT „B„ s.pr18686 ASSIGNMENT AND SALE COME NOW Jerry Oltremari and Carl Parker, d/b/a Cajun Cabins,Ltd. and hereby bargain, sell and convey for the sum of Ten and NO/100 Dollars ($10.00) and other good and sufficient consideration to Monica Momin all of the right,title and interest in that leasehold interest known as Cajun Cabins, Ltd. on Pleasure Island, Port Arthur,Texas. Sellers, Jerry Oltremari and Carl Parker, agree to assign all right title and interest to that certain lease,the original date of which is February 20, 1992, with all renewals thereafter. (Attached as Exhibit"A"). Buyer, Monica Momin, agrees to accept full responsibility for all requirements of the aforementioned lease, including taxes, insurance and all other matters required by the lease between the leaseholder and the City of Port Arthur. Done this day of Infer 'Y O THE SARI (ii(id,L � CARL PARKER , MQNICA MOM1t1 APPROVED: CITY OF PORT ARTHUR ; � ;�•• '`'�°-: PATRICIA STANSBURY MY COMMISSION EXPIRES ,:�•,p h� September b,217 SWORN TO AND SUBSCRIBED before me on this "- ,,day of N 2014 by Jerry Oltremari. Notary Public, State of Texas )1S- SWORN TO AND SUBSCRIBED before me on this 4-Ai—clay of i ,1 2014, by Carl Parker. / .,„-, 1 . t , Notary Public, State of Texas ----- ''71:*., PATRICIA STANSBURY el* *1 MY COMMISSION EXPIRES September 5,2017 ‘ SWORN TO AND SUBSCRIBED beforeNme on this L-4-44..„ day of,11 , 2014, by Monica Momin. Vf.O.A.At.A-0,-, Nott-y Public, State of Texas ILId.")\Oz AIN\ PATRICIA STANSBURY f :***ri MY COMMISSION EXPIRES V .:''' September 5,2017 d' SWORN TO AND SUBSCRIBED before me on this day of , 2014, by for the City of Port Arthur. Notary Public, State of Texas 9208 94 } 0 # 13 1t75 THE STATE OF TEXAS A COUNTY OF JEFFERSON L E A S E THIS LEASE, made and entered into at Port Arthur, Jefferson County, Texas, this / day of / , 1992 , by and between the City of Port Arthur, hereinafter referred to as the "Lessor, " acting hereby and through the duly authorized Pleasure Island Commission, pursuant to Article I , Section 1, of the Charter of the City of Port Arthur, and CAJUN CABINS LIMITED, a Texas Limited Partnership, hereafter referred to as the "Lessee, " which terms of Lessor and Lessee are used in a general sense and shall include the successors, assigns, sublesses or licensees of the respective parties. W I T N E S S E T H : THAT in consideration of the covenants and agreements hereinafter mentioned and to be performed by the respective parties hereto, and the payment of rent herein designated to be paid by the Lessee in accordance with the provisions of this Lease, the Lessor has leased, rented, let and demised and by these presents does lease, rent, let and demise unto the said Lessee the following described real property and improvements thereon situated on Pleasure Island in Port Arthur, Texas to-wit: Described property attached. EXHIBIT 1 y+f 1 ti 4 13 k76 TO HAVE AND TO HOLD the above described premises, together with all and singular the tenements, hereditaments and appurtenances thereunto belonging or in anywise incident or appertaining, unto the Lessee for the term of TWENTY-FIVE (25) YEARS for the plan and purposes generally outlined hereinafter. ARTICLE I Term of Lease THIS LEASE shall begin on the day of execution hereof and continue for TWENTY-FIVE (25) YEARS hereafter unless sooner terminated as herein provided, or extended as herein provided. ARTICLE II Title and Survey The Lessor covenants that it has lawful title to said premises, free and clear of all liens, mortgages and encumbrances, subject, however, to outstanding minerals reserved by the State with right of development, easements and restrictions provided by statute or of record affecting the premises, and subject to all ordinances, statutes and regulations of competent governmental authority affecting the occupancy and use thereof , the construction and maintenance of improvements thereon and the use and activity to be engaged in by the Lessee and its assigns, in force now and subsequently during the term of this Lease, and further subject to the alleged rights of "Navigational Servitude" in the United States Government as hereinafter described in ARTICLE XXIV. 2 4 3 147 ? The premises are demised by metes and bounds and Lessor does not warrant, guarantee or covenant as to acreage or any minimum area leased. ARTICLE III Stamps Should any Documentary Stamps be required to be affixed to this Lease under the laws of the State of Texas, such stamps shall be at the expense of the Lessee. ARTICLE IV Rental The Lessee hereby covenants with the Lessor that it will pay rental in monthly installments in the amount of Two Hundred Dollars ($200) plus three percent (3%) of gross revenues from the previous month. All rents shall be payable monthly on the first of each month at the Pleasure Island Development Commission Office in current legal tender of the United States of America, as the same is then, by law, constituted. The extension of any time or times for the payment of any installment or installments rent, or the acceptance by the Lessor of any money other than of the kind herein specified, shall not be a waiver or release of the right of the Lessor to insist on having any or all of said payments of said rent made in the manner and at the time herein set forth. 3 , 4 3 $ `t78 The rental to be paid by Lessee for any extended term of this Lease in the event Lessee shall exercise its option to renew this Lease, shall be determined as follows: (a) Rental adjustment on exercise of option to renew. In the event that Lessee shall exercise its option to renew this Lease, as provided in Article XXVI , Lessor may require an adjustment in the amount of rental for the renewal term commencing January 2 , 2016 , by giving written notice to the Lessee at least twelve ( 12) months prior to the commencement of the renewal term, which notice shall include supporting appraisal (s) . (b) Arbitration in event of dispute. In the event that Lessor shall require a rental adjustment under Article IV(a) hereof, Lessor and Lessee may agree in writing on the amount of the rental for the renewal period at any time within ninety (90) days after said notice is given by Lessor. If such agreement is not reached and signed by both parties within the said ninety (90) days, then the rental for the period in question shall be determined by competent and disinterested appraisers, one of whom shall be selected and paid for by Lessor and the other of whom shall be selected and paid by Lessee. The two appraisers so selected shall select a third appraiser, the expense to be borne equally by Lessor and Lessee, and the three appraisers so selected shall determine the rental to be paid by Lessee during the ensuing period. In the event that either Lessor or Lessee shall fail to appoint an appraiser within ten ( 10) days after the expiration of such ninety (90) days, or in the event the first two appraisers shall fail to select a third appraiser within fifteen (15) days after expiration of such ninety (90) days, then the appraiser or appraisers in question shall be appointed by a District Judge of Jefferson County on the request of either party. Filing such request, the appraisal shall proceed with the appraiser or appraisers previously selected. (c) Task of Appraisers. The appraisers, when selected, shall determine the fair rental value of the land herein demised (without building, fixtures and improvements) for the uses defined in Article II . The appraisal shall be in writing, copies thereof shall be given to Lessor and Lessee yrior to the commencement of the final year of the primary term, and the appraisers ' findings of the rental for the renewal period shall be therein determined, which rental in no 4 104 13 1479 event shall be less than the rental then being paid by Lessee under the primary term. Such findings of the rental therein determined shall be the rental for the renewal period. Subject to the foregoing limitation that the rental for the renewal term shall in no event be less than the rental for the primary term, in the event the appraisers cannot agree on such findings, the rental for the renewal term shall be the average of the findings of the appraisers . Lessee shall thereafter have ten (10) days to give written notice to Lessor of its intent to accept the decision of the appraisers and thereby renew this Lease. If Lessee does not so notify Lessor, then this Lease shall terminate at the end of the primary term. In the event of damage or destruction of the improvement(s) by fire or other casualty, the rental may be abated with written notice of same to the Pleasure Island Commission within five (5) days thereafter and subject to the reasonable approval of the Pleasure Island Commission and for such term and under such conditions as are just and equitable under the circumstances. If the Lessor and the Lessee are unable to agree upon what abatement of rent is just and equitable, within thirty (30) days after the decision of the Pleasure Island Commission is made in writing, the matter in dispute may, by appropriate proceedings, be submitted by the aggrieved party to a court then having jurisdiction. ARTICLE V Lessor ' s Lien for Rent THE LESSOR SHALL HAVE THE FIRST LIEN, paramount to all others on every right and interest of the Lessee in and to this Lease on any building, buildings, or improvements placed or constructed on the premises, by the Lessee , and on any fixtures of any kind, or the equity of the Lessee therein, which lien is 5 114 13 ' 480 granted for the purpose of securing the payment of rents, taxes, assessments, charges, liens, penalties and damages herein covenanted to be paid by the Lessee, and for the purpose of securing the performance of all and singular the convenants, conditions and obligations of this Lease to be performed and observed by the Lessee. Such lien shall be in addition to all rights of a Landlord given under the Statutes of the State of Texas which are now or might hereafter be in effect. Provided, however, that the Lessor ' s lien provided by this Article shall not be paramount and superior to such lien as Lessee may place upon furnishings, fixtures and equipment to secure the purchase thereof . ARTICLE VI All Taxes Payable by Lessee Lessee covenants and agrees that Lessee will promptly pay all taxes on the real property which is the subject of this Lease or personal property or buildings and improvements located thereon, levied or assessed at any or all times during the term hereby demised, by any and all taxing authorities of competent jurisdiction, together with any interest, penalties or other charges which may accrue thereon; PROVIDED that in the event any of said taxes or assessments are payable according to the terms of their imposition, in installments, then the Lessee shall have the right to pay the same as such installments fall due. THE PARTIES UNDERSTAND AND AGREE THAT THE LESSEE SHALL PAY taxes and other charges as enumerated in this Article, and 6 104 18 1481 shall deliver official receipts evidencing such payments unto the Lessor at the place at which rental payments are required to be made. If, however, the Lessee desires to contest the validity of any tax or tax claim, the Lessee may do so without being in default hereunder as to its obligations to pay said taxes, provided the Lessee gives the Lessor notice of its intention to do so, provided the Lessee proceeds with due diligence in good faith. If the Lessee does not prevail, then Lessee shall pay the same within thirty (30) days after learning of an adverse final ruling. ARTICLE VII Fire and Windstorm Provisions The Lessee hereby covenants and agrees with the Lessor that it will, at all times during the term of this Lease and at Lessee' s sole expense, keep any and all buildings and/or improvements including all alterations, additions and improvements that may be built or placed upon said premises and any personal property which may be subject to the Lessor' s lien insured with a good and responsible insurance company authorized to do business in the State of Texas against damage by windstorm, fire, flood and extended coverage hazard insurance in an amount not less than their full insurable value, with loss payable to Lessor and Lessee as their interests may appear . Copy of such policy shall be furnished to the Pleasure Island Commission and such policy shall contain a provision that written notice of not less than thirty (30) days shall be given to the Pleasure Island Commission prior to 7 1 0 4 13 ! k82 any termination or modification of such policy. All insurance provided by Lessee as required shall be carried in favor of Lessor and Lessee as their respective interests may appear. In the event of damage to or destruction of the improvement(s) by fire or other casualty, Lessee shall utilize the insurance proceeds in the reconstruction of the improvement(s) on the demised premises. Such reconstruction shall be commenced within six (6) months of such damage or destruction and completed without undue delay, except for delays due to strike, casualty, natural disaster or weather of unusual severity and of which written notice shall be given to the Pleasure Island Commission within five (5) days thereafter and subject to the reasonable approval of the Pleasure Island Commission. Provided, however, where the loss exceeds fifty percent (50%) of the total value of all improvements on the demised premises, Lessee may, within ninety (90) days of such casualty, elect not to repair or reconstruct the improvement (s) and thereupon terminate the Lease. In such event, Lessee shall clean and restore the premises to a condition at least equal to that existing prior to such improvement (s) , and insurance proceeds shall be applied to any outstanding mortgage indebtedness and the remainder, if any, of such insurance proceeds shall be paid to Lessor. Provided further, and not withstanding the aforesaid provisions of this Article, Lessee must clear and remove all debris and rubbish resulting from fire or natural disaster within thirty (30) days of such damage 8 g04 f3 ' 483 or destruction, unless otherwise authorized in writing by the Commission. ARTICLE VIII Mortgagee' s Interest in Insurance Proceeds THE PARTIES LIKEWISE COVENANT AND AGREE THAT IN THE EVENT any mortgage has been placed against the demised premises, the Lessee shall be permitted to attach the necessary mortgage and loss payable clauses, making loss payable under such insurance policies payable to the holder of such mortgage, as well as to the Lessor and the Lessee, as their interest may appear. ARTICLE IX Payment of Insurance Premiums IT IS FURTHER UNDERSTOOD AND AGREED THAT THE LESSOR shall not be liable for the payment of any of the premiums required to be paid for any of the policies of insurance required, in and by this instrument, to be procured by the Lessee, nor shall the Lessor, in any way, be and become liable for the collection or noncollection of any of the proceeds from any of the policies of insurance. IT IS FURTHER COVENANTED AND AGREED THAT IN CASE, at any time, during the continuance of this indenture, the Lessee shall fail, refuse or neglect, after being given thirty (30) days notice, to procure or to keep and maintain said insurance in full force and effect, the Lessor, at its option (and without such act constituting a waiver of the default by the Lessee thus occurring) may procure or renew such insurance and thereupon, the amount or amounts of money paid as the premium 9 184 13 3484 or premiums thereon, plus interest at the rate of ten percent (10%) per annum shall be collectible as though it were rent then matured hereunder and shall be due and payable within thirty (30) days written demand for reimbursement therefor shall have been made by the Lessor upon the Lessee and the Lessee' s failure to effect such reimbursement within such time thereafter, shall constitute a default herein. ARTICLE X Premises to be Used for Legal Purposes Only THE LESSEE COVENANTS AND AGREES THAT during the term hereof, it will conform to, and observe all applicable ordinances, rules, laws and regulations of any governmental authority having jurisdiction and will not , during such term permit the same to be used for any illegal or immoral purpose, business or occupation. ARTICLE XI Legal Waste Lessee covenants through the entire term of the Lease at the Lessee ' s sole cost and expense to keep in good repair and in clean and neat condition the demised premises and building or buildings and/or furniture and furnishings and suffer no waste. Neither Lessor nor Lessee shall be required to install or maintain bulkheading or other measures to prevent erosion along the ship channel . (Lessor assumes no responsibility for such erosion, but may in its sole discretion, and without waiver of its rights hereunder, or the assumption of any 10 4 1 3 ' 85 obligation thereby, undertake bank stabilization measures along the channel frontage. ) ARTICLE XII Assignments, Subleases, Licenses and Liens LESSEE SHALL NOT, without prior written notice to Lessor, assign, sublet, license, or otherwise convey an interest in Lessee's leasehold estate or any part of the premises. The making of the sublease, license or concession shall not release Lessee from or otherwise affect, any of Lessee 's obligations hereunder. Lessee shall have no power to do any act or to make any contract that may create or be the foundation for any lien upon the demised premises or upon any improvements thereon, except as herein elsewhere specifically provided; and should any such lien be created or filed, Lessee, at its own cost and expense, shall liquidate and discharge the same in full within ten (10) days after the filing thereof and should Lessee fail to discharge same, the same shall constitute a breach of Lessee' s covenant herein. (a) Lessor shall be notified in writing of the proposed assignment, sublease or license including the name and address of the proposed assignee, sublessee or licensee, which shall be sent by certified or registered mail; further, said notice must be received by the Lessor at least thirty (30) days prior to the proposed execution of any assignment, sublease or license as contemplated herein. (b) At the time of the proposed assignment, sublease or license, the Lease must be in good standing and shall not be in default. Provided, however, the notice to Lessor to a proposed assignment, sublease or license, shall in no wise waive or stop Lessor from asserting any breach or default of the Lease not known to the Lessor at the time of said notice. 11 104 13 1486 (c) The executed assignment, sublease or license, together with notice to Lessor, shall be filed of record in the public records of Jefferson County, Texas and an executed copy thereof shall be delivered to lessor within ten ( 10) days from the recording of the original thereof . (d) The assignee, sublessee, or Licensee shall take possession of the property and shall agree to be bound by all of the terms and conditions of this Lease. ARTICLE XIII Mortgages FOR THE PURPOSES OF ENABLING THE LESSEE TO CONSTRUCT or purchase and place a building or buildings, improvements, furnishings, fixtures, and equipment upon the demised premises the Lessee may upon prior notice in writing to the Lessor, mortgage respectively such buildings, furnishings, fixtures, and equipment. Such mortgage and mortgages shall be made only to a bank, trust company, life insurance company, federal savings and loan association, or other lender of an institutional nature and shall be conditioned upon the following: (a) That said mortgage and note secured thereby shall set forth the fact that the execution thereof shall not render Lessor responsible for the payment of the debts evidenced thereby; but Lessor will state affirmatively in writing upon request of Lessee that Lessee has the right to enter into the mortgage financing to the extent provided by this Lease. (b) That the total cost of securing said financing and all expenses incurred thereby shall be borne by the Lessee. (c) That the proceeds of any mortgage shall be disbursed through an institutional lender in a manner to insure completion of said improvements and the payment of all bills incurred in connection therewith. 12 1O4 13 ; 487 (d) The obligation to pay any mortgage and of keeping it in good standing is the duty of the Lessee and the Lessee covenants and agrees that Lessee will keep said mortgage or mortgages in good standing and will not suffer or permit the said mortgage to be in default. Application paper shall contain the statement that Lessor shall never be rendered liable for the payment of the debts proposed to be secured by the mortgage. If the Lessee should default and is undertaking to keep the mortgage or mortgages in good standing in the manner herein set forth, then the Lessor may, at its option, make such payments as are necessary to restore the mortgage or mortgages in good standing and all payments thus made by Lessor shall bear interest at the rate of ten percent (10%) per annum, but in no event less than the interest on the mortgage, from the date upon which they were made and shall be considered as so much additional rent as may be collected in the same manner as rent could be collected; but the election of Lessor to make such payment and to collect them as rent shall not be deemed to cure the default thus committed by Lessee and said sum so advanced shall be deemed thus due and payable unto Lessor by Lessee immediately as though they were installments of rent then currently maturing; but nothing herein contained shall be construed as preventing Lessor from treating Lessee's failure to keep the said mortgage or mortgages in good standing as a default in the Lease, enforceable according to the terms hereof . Providing, further, that any such mortgage shall state that in the event of foreclosure by the lender (or delivery of possession in lieu thereof) whomever shall take possession of the property is subject to the provisions and obligations of this Lease. ARTICLE XIV Liability Insurance and Indemnity_ THE LESSEE COVENANTS AND AGREES THAT IT WILL, AT ALL TIMES, and at its own expense, keep the buildings and improvements situated on the demised premises at any time, and all property which is subject to the Lessor ' s lien hereunder, during the terms of this Lease, insured with a good and reputable company authorized to do business in the State of Texas, so as to save and keep the Lessor free and harmless from any and all damage and liability occasioned by the use of the said premises; and Lessee shall further indemnify and keep harmless the Lessor from and against any and all liability, claim, loss, suit, 13 13 488 cost, damage and expense or whatsoever kind and character arising out of and in connection with the operation, use, occupancy or condition of said premises; and the Lessee covenants and agrees to provide policies of insurance generally known as comprehensive general public liability insurance insuring Lessee and Lessor against all claims and demands made by any person or persons whatsoever for injuries received in connection with the operation, maintenance , use or condition of the lands or improvements and building or buildings located therein, to the extent of not less than Three Hundred Thousand Dollars ($300, 000 . 00) in connection with any one particular accident or occurrence. Said policy shall provide for thirty (30) days ° prior written notice in event of any cancellation or modification. Lessee shall give immediate written notice of any claims to Lessor. ARTICLE XV Default If Lessee shall default in the performance of the agreements, conditions, covenants, or terms herein contained, or if Lessee shall close, abandon, or discontinue use and operation of the demised premises for a period of thirty (30) consecutive days or more without permission of the Commission in writing, or if a petition or answer for reorganization of the Lessee or the owner of the Lessee ' s interest shall be approved by any Court or judge thereof, or if Lessee or the then owner of Lessee' s interest shall be adjudicated insolvent or bankrupt, or if Lessee or the then owner of the Lessee's 14 ° O4 3 1489 interest hereunder shall make an unauthorized general assignment for the benefit of creditors, or shall take any benefit under any insolvency or bankruptcy act, or have a receiver or trustee or other beneficiary appointed or its property, or if Lessee' s leasehold interest shall be taken on execution or other process of law, or if this Lease or the estate of the Lessee hereunder shall be transferred or pass to or develop upon any other person, firm, association, or corporation, except in the manner provided hereunder, then and in any of said events, Lessor or those claiming under Lessor, may immediately or any time thereafter, have the right to terminate this Lease and the terms hereby granted, as well as all the rights, title and interest to Lessee hereunder by giving the Lessee and known mortgagees ten ( 10) days ' notice in writing or such other notice as shall be required by any Collateral Assignment given by the mortgagor as per the provisions of Article XIII; and it is agreed that upon the expiration of the term fixed in such notice, if the said default or other cause of termination specified in such notice shall not have been made good or removed, this Lease and the term hereby granted and created, as well as all other rights, title and interest of Lessee hereunder shall , at the option of the Lessor or those claiming under Lessor, wholly cease and expire. 15 I4 13 49U ARTICLE XVI Development and Use and Maintenance of the Premises in Accordance with the Charter of the City of Port Arthur, Texas, Article I , Section 10 (b) The demised premises shall be used for the construction, operation and maintenance of twenty (20) rental duplex units, one (1) office, washateria unit, parking lot, commons area, and landscaping. With prior written approval of the Pleasure Island Commission, Lessee may add to or discontinue one or more of the above items provided that the primary purpose in terms of services rendered, and area of premises utilized, the business maintained is the offering of rental units and related services and sales. Plans and specifications for all improvements to be constructed upon the demised premises by Lessee shall be first submitted to the Pleasure Island Commission before the erection and construction of any such improvements. Such improvements shall each be of a design in keeping with the area and shall meet and/or comply with all city, county and state laws and requirements. All such buildings and improvements constructed by Lessee shall be and remain Lessee ' s property, subject nevertheless to the terms, conditions and covenants of this Lease, until expiration or termination of this Lease, where upon Lessor shall become the owner of any such buildings and improvements together with all furnishings, fixtures and equipment permanently affixed thereto. 16 104 13 1491 (a) Within twenty four (24) months after the date of this lease, Lessee shall , at its expense, have developed the demised premises for the aforesaid purposes. (b) No trucks, trailers and other vehicles, the operation of which requires a Class A, B or C Commercial Driver' s License as provided by the Texas Commercial Driver's License Law, shall be parked or stored on the demised premises without the consent of the Pleasure Island Commission; with the exception of buses and recreational vehicles. (c) It is mutually agreed that upon the termination of this lease all terms and conditions of this Lease having been met, Lessee may remove all of Lessee' s equipment, machinery, and merchandise from the demised premises at Lessee' s own expense and shall deliver up the demised premises in good condition. ARTICLE XVII Removal of Buildings IT IS FURTHER COVENANTED AND AGREED BY AND BETWEEN THE PARTIES HERETO, that, notwithstanding any other provision of this Lease Agreement, Lessee may remove all buildings on leased premises at any time during the first five years of this Lease Agreement upon payment of $12 , 000 to Lessor. ARTICLE XVIII Remedies for Breach In the event of any breach or threatened breach of the Lessee of any of the agreements, covenants, conditions, or terms hereof , Lessor shall have the right of injunction to restrain the same, and the right to invoke any remedy allowed by law or in equity, as if specific remedies, indemnity, or reimbursements were not herein provided for. Furthermore, the 17 104 13 1492 rights and remedies given to Lessor in this Lease are distinct, separate, and cumulative rights and remedies and no one of them, whether or not exercised by Lessor, shall be deemed to be in exclusion of any of the others. ARTICLE XIX Cost in Dispute; Lease Constitutes Whole Agreement; Lease Subject to Restriction, Easements and Mineral Rights In case of a dispute between the parties, the prevailing party shall be entitled to reasonable cost, attorney' s fees and expenses incurred. Lessee agrees that in taking this Lease, Lessee is governed by Lessee' s own inspection of the premises and Lessee' s own judgment of the desirability for its purposes and has not been governed by any representation of Lessor, its agents, or employees , as to the condition of the premises of its suitability for the intended use; that no agreements, stipulations, reservations, or conditions whatsoever have been made or entered into in regard to said premises or this Lease which will in any way vary, contradict or impair the validity of this Lease, or of any of its terms and conditions, and that no modification of this Lease shall be binding unless it is in writing and executed and acknowledged in due form for recording by all of the parties hereto. Furthermore, Lessee takes and accepts this Lease and the demised premises subject to all easements and restrictions provided by statute or of record affecting the occupancy and use thereof and subject to all statutes, ordinances, and regulations of competent governmental authority affecting the occupancy and use thereof, the 18 104 13 1493 construction and maintenance of improvements thereon and the use and activity to be engaged in by Lessee, in force now and subsequently during the term of this Lease, and subject to the reservation of all mineral rights and interest in the State of Texas and its assigns. Further, Lessee takes and accepts this Lease and the demised premises subject to any rights of servitude in the United States Government, further described in Article XXIV. ARTICLE XX Illegal Provision It is agreed by the parties that if any part, term or provision of this Lease is by the Courts held to be illegal or in conflict with any law of the State of Texas, the validity of the remaining provisions shall not be affected, and the rights and obligations of the parties shall be construed and enforced as if the Lease did not contain the particular part, term or provision held to be invalid. ARTICLE XXI How Notice is Given IT IS FURTHER AGREED, AS A CONDITION ON THIS LEASE, that in every case where it shall be necessary to serve a notice on a party concerning this Lease, it shall be sufficient service of said notice or demand or declaration to deliver a copy thereof by hand or mail a copy thereof by certified or registered mail to: 19 h 13 ; 49s Lessor: Executive Director Pleasure Island Commission P.O. Box 1089 Port Arthur, TX 77640 Lessee: ARTICLE XXII Condemnation Clause IT IS FURTHER COVENANTED AND AGREED THAT IF AT ANY TIME DURING the term of this Lease the demised real estate or the improvements or buildings located thereon or any portion thereof be taken or appropriated or condemned by reason of eminent domain or exercise of "Navigational Servitude" then Lessor and Lessee should be free to make claim to the extent provided by law against the taking authority for the amount of any damage done to them, respectively, as a result thereof; and such abatement of rent and other adjustments made as shall be just and equitable under the circumstances. If the Lessor and the Lessee are unable to agree upon what abatement of rent or other adjustments are just and equitable within thirty (30) days after such award has been made, then the matters in dispute shall, by appropriate proceedings, be submitted to a Court then having jurisdiction of the subject matter in Jefferson County, Texas for its decision and determination of the matters in dispute. If the premises be wholly taken then the Lease shall be canceled. Although the title to the 20 it 13 1495 buildings and improvements placed by Lessee upon the demised premises will pass to the Lessor, nevertheless, for the purpose of condemnation, the fact that the Lessee placed such building on the demised premises shall be taken into account and the deprivation of the Lessee of the use of such building shall pro tanto be an item of damage in determining the award to which Lessee may be entitled by law from the taking authority. In general, it is the intent of this paragraph that upon condemnation, the parties thereto shall be entitled to recover from the taking authority, such award as may be provided by law, to the extent that their interests, respectively, are depreciated, damaged or destroyed by the exercise of the rights of eminent domain, provided, however, it is understood and agreed that the taxing of a portion of the demised property for public street and/or sidewalk purposes, exclusive of any portion of building, shall not warrant any abatement or entitle the Lessee to any abatement of annual rental hereunder, except as computed against the annual rent on a square foot basis. ARTICLE XXIII Navigational Servitude The demised premises are subject to certain easement rights granted to the United States by the State of Texas, Texas Laws, Special 1931, CH. 176. Pleasure Island, including the demised premises, is allegedly subject to the rights of the United States Government of "Navigational Servitude" under the United States Constitution and/or laws of the United States. While Lessor does not anticipate that the Government will undertake 21 104 13 ' 4 6 to exercise such alleged right of servitude resulting in the taking of any of the demised premises or any buildings, or improvements to be constructed thereon, in the event that the Government does so undertake the exercise of such alleged right of servitude, then the Lessor shall take whatever legal action is available to seek to prohibit the Government from thereby interfering with the Lessee' s right to quiet enjoyment of the demised premises or any portion thereof . However, Lessee acknowledges that the Corps of Engineers and the City of Port Arthur have established an unofficial building line along the present ship channel as a reference point for future channel expansion so as to discourage construction within the area between the building line and said ship channel and Lessee recognizes that improvements made within this area are subject to removal in the event the channel is widened up to the building line. ARTICLE XXIV Return of Premises to the Lessors THE LESSEE COVENANTS, STIPULATES AND AGREES THAT UPON the expiration of this Lease, it will, at once, peaceably and quietly deliver up to the Lessor all of the demised premises, including the buildings and improvements situated thereon, in as good a state and condition as reasonable use and wear thereof will have permitted, and that all buildings and improvements, then situated upon the described premises will belong to the Lessor, and that no compensation shall be allowed or paid to the Lessee therefor. However, at the option of 22 104 13 4 4 97 Lessor, the Lessee will remove the buildings and improvements if requested to do so by Lessor. ARTICLE XV Utilities The Lessor agrees that sewer and water facilities will be brought to the borders of the demised premises at Lessor' s expense. There shall be no special assessment for taps or hookups other than the ordinary charge which is based on the costs of the meter and the cost of the labor for installing the same, i. e. , there shall be no assessment against the Lessee for the cost of bringing the utilities to the edge of the demised premises. Lessee shall be responsible, however, to arrange for and to pay for the cost of all utility services, including without limitation water, sewer, electricity, gas and telephone service. Lessor agrees to provide for adequate drainage of the demised premises. ARTICLE XXVI Miscellaneous Provisions IT IS COVENANTED AND AGREED that no waiver of a breach of any of the covenants of this Lease contained shall be construed to be a waiver of any succeeding breach of the same covenant. TIME IS OF THE ESSENCE. ALL ARREARAGE IN THE PAYMENT OF RENT shall bear interest from the date when due and payable at the rate of ten percent (10%) per annum, until paid. ALL COVENANTS, PROMISES, CONDITIONS AND OBLIGATIONS herein contained, or implied by law, are covenants running with the 23 1O4 1 3 ! 498 land and shall be attached to and binding upon the heirs, executors, administrators, successors, legal representatives, assigns, sublessees and licensees of each of the parties to this Lease. ALL USES OF PRONOUNS IN REFERENCE TO THE LESSORS AND LESSEES respectively, mean such Lessors and Lessees respectively, whether the personal or impersonal, singular or plural pronoun in used. LESSOR MARES NO WARRANTIES, WHATSOEVER, EXPRESS OR IMPLIED as to the economic effect or other type of impact upon the leased premises, if any, that may arise due to the leasing by the Pleasure Island Commission of any other of its properties. Lessee, in executing this Lease, warrants that Lessee is not relying upon any statement or representation of Lessor, or of any agent or servant of Lessor, but is relying upon Lessee' s own judgment. ARTICLE XXVII Erosion If, by reason of erosion, the leased premises become unsuitable, Lessor shall, as soon as practicable, provide alternative property on an alternative 2 acre tract of land to Lessee mutually agreed upon which is suitable for the same commercial activity and under the same terms as provided herein. ARTICLE XXVIII Option to Renew LESSOR grants to Lessee, subject to the conditions set 24 104 13 ! 499 forth below, the right and option to renew this Lease for a period of ten ( 10) years , commencing on January 2 , 2016 and terminating on January 2 , 2026 at a rental determined as provided in Article IV herein, and otherwise subject to all of the terms and conditions herein contained except that there shall be no further option to renew this Lease. This option must be exercised by giving to Lessor, not less than one ( 1) year prior to the end of the primary term, a written notice of Lessee' s intent to exercise the option. But Lessee shall in no event be entitled to renew the term hereof, even though such notice be timely given, unless Lessee shall have timely performed all of its obligations hereunder, and shall not be in default in the performance of any thereof , on the date of the expiration of the initial term hereof . IN WITNESS WHEREOF, the Lessor herein has hereunto affixed its hand and seal, and the Lessee herein has caused these presents to be signed and executed in its name by its General Partners, at Jefferson County, Texas , this &(), day of -.e 4 , 1992 , A.D. , and said signatures shall be duly acknowledged before a notary public in good standing. LESSOR PLEASURE ISLAND COMMISSION By_____Zr:/... ;.- Aire Terry ;r; le Chairman 25 1O4 13 ' 500 LESSEE CA4 ABINS LIMITED By Jerr D, 0 tremari General Partner By ltka,\PC,(1\JVZiN Carl A. Parker General Partner THE STATE OF TEXAS § COUNTY OF JEFFERSON § This instrument was acknowledged before me this (Q day of - 9?Pn4 4r)-, 1992 , by TERRY DOYLE, Chairman of the PLEASURE ISLAND ' a body politic and corporate, on behalf of said ) o ary Public, State of Texas THE STATE OF TEXAS § COUNTY OF JEFFERSON § This instrument was acknowledged before me this /7k- day of February, 1992 , by JERRY D. OLTREMARI and CARL A. PARKER, General Partners, on behalf of CAJUN CABINS LIMITED, a Texas Limited Partnership. Notary Public, S .te of Te.a PATRICIA STANSBURY RICIASTANSBU NOTARY PUBLIC,STATE OF TEXAS !,N fj, MY COMMISSION EXPIRES SEPT.5, 1993 26 02/14192 21 S 489 983 8869 f SLfND COMM P.82 FEt3 14 ,192 {S,:41 r-an'c.EIJE141X.c TrrgS VI i III rtm. 1 . • . 104 13 1501 ,; . . 40 I GATES METIsS AND ROUNDS 1)ESCRIP'11ON IlOR LOU ACRES OUT OF`I lE B.C.AlitTilUlt (MOULTING pNtaNsts.INC. SURVEY,PAT. NO.227,q JU7/18 CYTY OF PORT AR'IIIUR Dtau+rCRS JEFFERSON COUNTY,TEXAS auavcroas suomp BEING a tract or parcel containing 2.00 acres out of and a part of the B.C. Arthur Survey,Patent No.227. 9/07/1895 located on Pleasure Island in the City cg Port Arthur, 3efferiion County,Texas and being more particularly described by tnetoq and bound as follows_ , BEGINNING at a conc[cte monument foProperty Southeast corner of a Jefferson 1.005 acre being ontilµe described in Film Code 101 39 0795 Real ' North Right-of-way II i e of State Highway 82; TIIENCI7 North 27 deg.46 min,32 see.East long the North line of State Ilighway 82 fora distance of 353,44 feet to a 1(2-inch rod set for r North 62 deg. 13 vain. 28 sec, West for a distance of 7A6A9 feet to a 1/2-inch iron rod set I�I-ii�NGl.N g j for cornet; TIWNCIt South 27 deg: 46 min. 32 sec:, West for a distance of;353.44 feet to a concrete monument found for Northeast cornet of said LUUS acre tiacc; and the Northwest carnet herein; '1'IIii:NCI South 62 deg. 13 rain. 28 sec. along the Past line of the 1.005 acre tract for tt distance of 246.49 feet to the POINT OF BEGINNING and containing 2.00 acres of laud. • COMPILI+U BY: ARCENEAUX & GATES A. CONSULTING ENUINFI'1t5,INC. -ozatN - '-t OF r ye LS-92,069 . ♦ 1 I.♦•l..,. 2=069 1 � Mr. Jr ery Oltremari January 13, 1992 l.AftCtFiEAUR j )j ,�.. cr �,�1W ',. ‘.'►�'f>�, 5007 ,c44;•0 S'l P'• cap . it'd %;-,,5'6-X.„F _.�._5./-f1..'1) (' ///1/P;e. -! , O ;r /7/ I(J/K ,,T y '2 )(,-i/ ! Ora7urtli GtNk tiquma MI Ijitr.Ca•k pr,Ea" Pori Arthur,IX 741042 1 roWlot t/4414b 4 11 . 02/14/92 121 2 409 992 9069 P SLAW) COMM P_93 FE9 14 '92 15142 .Et'IEALIX/1 TE5 1/41714 F'N3 rr -. Q _-x:4 6/"./47 /tifee ,t' ._SAS,/,' (,7/5.4".v/./G'/ ..11:0°' • re....... . _ • .....•. . Cif Cl � (. 0..A ., .0 C4..1 Ira Ne- / ..,i . . 2. 00 -4c' .- our c .4-'W• ��c' r5'.e. ..gr1/�._.r- ..fur 146 l�I `y ✓tffsrfs.-. Gd4rlft. ,i 'Tefc...s v v a ,fit 4' s.ic N� of d 4,746.4,”Ar, • Nc+rfe4 re/44/ /i:v • fwd, N ZT° . " ' .3x5.3. 41 ' _,f-, ivr.Asti. • ,1il �T.-oe rar. .6/1A.r-er4 m'2 ' Flood .tons , "�' ____ A. 0 OntoeP ._,_...T j COATE8 L 5 q•2-oG9 l Q..,v, 1M0 p Csntut trocl , ��� ttMPWClea. l�r Scot*, " c .AP r.4..1., field Book N. --- i Pole; .. /3- .... .. `1"" Pope No_ i _.._ PLAT OF' PROPERTY r cor/i/y t e/ !hi is a true and ac-dr•/e p n A properly knOWvn Oct t _ ,---J O r 1„ t ��^'_ t a' , . ,� us t ' The propeyo f /�P .1f ti-''';Nf'4k L/�`y .�. _ _ as scirvoynfl6y ma / ' a,,, 'Q� ''S' -'Z-- -• .4c'PA4rQ- oc/r'`!►1 /. . r.� e , showing (v/!) (,.�oJ i/»rrov•r»•nts and bbin LC1" .- -. 0/1".e74 .-- kt _.2`4(' neff..('zf_'_ )i I've y Acr/A) Err, 'II°/1-8,0 la..RNALD.. AftGENEAUX • o mat' of fhi.oh is ro rdod in VC/t/fl — Porty" of the Mop RetC4/'4c of ____ --JXfrP/,,arst County, Texas. TAers ape no N Yrr X872 a; t yiaib/o onorOOVAInenls of this properly at the time of the avrvey excep/ \� ���lrlt 2 Ntai40t as ahOWh. eMy--BS-dAow». 1 "►........� -� r 4. �'__�` -`-.4.1. rr Ale,,, t. 'Ro4(/ J. ,4icsnsoux L/• •nae No 4572 // mhfs instru�ent was acknow/sdped bo f /n• anth/s the /y .day _ - ,.-4,---.)Z /r�a .� u. a (.i.- pAYRtC1A K. 111AHAN 1 sr GOimasitOtl txrIM$ t