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Res 2024-218 approving a 20 year lease agreement with Telenetwork Properties, Ltd., a Texas Limited Partnership, for the lease of an office suite for the Municipal Court use at 350 Barnes Road
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Res 2024-218 approving a 20 year lease agreement with Telenetwork Properties, Ltd., a Texas Limited Partnership, for the lease of an office suite for the Municipal Court use at 350 Barnes Road
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11/19/2024 6:08:22 PM
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11/19/2024 6:07:52 PM
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City Clerk - Document
Resolutions
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Approving
Number
2024-218
Date
11/6/2024
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Notwithstanding any other provision in this lease to the contrary, Landlord and Tenant agree to the <br /> following: <br /> 1. All obligations of the Tenant, including, but not limited to, any duty to indemnify, shall be enforceable <br /> against Tenant only to the extent permitted by law and with the limitation that Tenant, in no manner <br /> waives any limitations on liability or any immunity granted or allowed by applicable laws or the Texas <br /> Constitution,including comparative negligence or liability laws. <br /> 2. Any limitation on liability of Landlord shall not extend to any liability, losses or damages caused in <br /> whole or in part by the negligent acts or omissions or willful misconduct of Landlord after applying <br /> comparative negligence or liability laws. <br /> 3. Notwithstanding anything to the contrary, Landlord shall not assert or enforce a lien or security interest <br /> against any property of Tenant that is not permitted by applicable law to be asserted or enforced against a <br /> Texas municipality. Moreover, any lawful lien or security interest shall be subordinate to any interest in <br /> property of the State of Texas or the United States of America arising by virtue of any funding <br /> agreements such entities may have with the Tenant. <br /> 4. The obligations under this Lease are contingent upon the annual appropriation of funds by the San <br /> Marcos City Council. If such funding is not received and appropriated by the City Council in any fiscal <br /> year during the term of this lease,the Lease term will be adjusted to terminate concurrently with the end <br /> of the period for which funding has been appropriated. Alternatively, if such funding is awarded to <br /> Tenant for a specific fiscal year, but the actual Rent due for that fiscal year exceeds the amount of <br /> funding, Landlord agrees that Tenant shall be liable only for payment of the lesser amount of the fiscal <br /> year funds awarded to Tenant and appropriated by the City Council, provided however in no event will <br /> the Rent be less than 85%of the prior year's Rent. Tenant will have one year to make the Rent back up;if <br /> Tenant does not pay full back-Rent within one year of lack of funding,Landlord may terminate this lease <br /> and will be entitled to payment of any back-Rent up to the amount of then-appropriated funds for the <br /> same. <br /> 5. No rent will be charged for the first 120 days to allow Tenant to renovate the leased premises for its <br /> intended use. <br /> 6. Landlord has 90 days to remove furniture, fixtures and equipment that Tenant has not specifically <br /> accepted,such as kitchen-use appliances and items. <br /> 7. The Tenant desires to buy the entire building. The Landlord may consider, at their discretion, selling the <br /> entire building to the Tenant during the term of this Lease. At the seventh, eleventh, fourteenth, and <br /> seventeenth year anniversary dates of the commencement of this Lease, the Tenant can terminate this <br /> Lease if the Tenant has not acquired the entire building at those interval years. The Tenant plans to invest <br /> $1,263,600 million in interior improvements for Tenant's use and $1,336,400 million in major systems <br /> improvements that support the Tenant's occupation of the Premises.If the Tenant buys the entire building <br /> at the seventh year, the Landlord will credit $500,000 toward the purchase price. If the Tenant buys the <br /> entire building at the eleventh year, the Landlord will credit $250,000 toward the purchase price. If the <br /> Landlord sells the entire building to the Tenant, the purchase price will be determined through an <br /> independent appraisal by a jointly agreed-upon certified real estate appraiser. During the term of this <br /> Lease,the Landlord agrees that no other person nor entity will be allowed to purchase, lease, or offered a <br /> right-of-first refusal to purchase the entire building without first making such an offer to the Tenant; <br /> provided, however, that Landlord is permitted sell and/or transfer the building to any affiliate in which <br /> the Landlord's ultimate principals or their trust or testate successors own a controlling interest. Upon the <br /> receipt of any such third party offer to purchase or lease the building,Landlord shall make the same offer <br />
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