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Res 167-97 11/4/1997RESOLUTION N0. _&2—q7 A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A COMMERCIAL LEASE AGREEMENT WITH DON AND LINDA RAKESTRAW FOR THE LAKE KICKAPOO GENERAL STORE /BOAT WORKS FOR A FIVE YEAR PERIOD BEGINNING ON AUGUST 1, 1997 THROUGH JULY 31, 2002; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION WAS DISCUSSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW. WHEREAS, on June 6, 1996, Don and Linda Rakestraw assumed the remaining term of the commercial lease on the Lake Kickapoo General Store /Boat Works, which expired on August 1, 1997; and, WHEREAS, Don and Linda Rakestraw have requested a new lease which would allow their continued operation at the Lake Kickapoo General Store /Boat Works. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS, THAT: SECTION 1. The City Manager is hereby authorized to execute a commercial lease agreement with Don and Linda Rakestraw for the Lake Kickapoo General Store /Boat Works, a copy of which is attached hereto, for a 5 year term, beginning on August 1, 1997 through July 31, 2002. SECTION 2. It is hereby officially found and determined that the meeting at which this resolution was passed was open to the public as required by law. PASSED AND APPROVED this the 4`h day of November 1997. ATTEST: City Clerk AYOR ` ,.... .... _._. .. ... .. _,.... .._... ..�.. ..a.`•w.�.... .......tee... ,- a.r...,�.v .��. �r-�„u �r s -s••rw �..._ . STATE OF TEXAS § COUNTY OF WICHITA § This agreement, made and entered into by and between the City of Wichita Falls, Wichita County, Texas, a municipal corporation, acting by and through its City Manager, called Lessor, and Don Rakestraw and Linda Rakestraw hereinafter , H C 51 Box 68 P, Holliday, Texas 76366, hereinafter called Lessee, on the day of 1997. WITNESSETH: 1. For and in consideration of the money payments herein covenants and conditions herein to be met by the Lessee, Lessor herein does hereby lease and and Don Rakestraw and Linda Rakestraw, H C 51 Box 68 P, Holliday, Texas Lessee, the hereby following described lands and premises situated in Archer Count),, Texas, to -wit: Being a tract of land out of Block 111, A. T. N. C. Survey, Archer County, Texas, and being described by metes and bounds as follows: BEGINNING at the Northeast corner of said A. T. N. C. Survey; THENCE following the North line of said Block 111, East 2,387.0 feet to the Northwest comer of said A. T. N. C. Survey; THENCE following the West line of said Block 111, 1,031.0 feet to a point on the West line of said A. T. N. C. Survey; THENCE South 68° 21' 00" East, 658.10 feet to a point, said point is the Southwest comer of this tract and the place of beginning; THENCE South 68° 21' 00" East, 271.26 feet to a point, said point being the Southeast comer of this tract; THENCE North 210 39' 00" East, 330.00 feet to the Northeast comer of this tract; THENCE North 680 21' 00" West, 500.00 feet to the Northwest corner of this tract; THENCE South 210 39'00" West, 182.00 feet to a point, said point being the Northwest corner of Tract 1 -A, Block 111, A. T. N. C. Survey; THENCE South 680 21' 00" East, 184.21 feet to a point, said point being the Northeast corner of said Tract 1 -A; THENCE South 210 39'00" West, 166.40 feet to a point, said point being the Southwest comer of this tract, the place of beginning, and containing 3.29 acres of land, more or less. Said tract of land being further identified by the map attached to this lease and labeled as Exhibit A. BEGINNING at the Northeast comer of the A. T. N. C. Survey, Block 111, Archer County, Texas; THENCE West 2,387.0 feet; THENCE South 1,943.0 feet to the Northwest corner and beginning of this tract; THENCE South 870 00' East 331.0 feet; THENCE South 30 00' West 113.0 feet; THENCE South 860 58' West along the high water line (elevation 1,050), 326.5 feet; THENCE North 148.0 feet to the beginning comer of this tract and containing 0.985 acres, more or less. This tract is leased for boat docking, storage, etc. Tract No. 2 may be relocated to any like area between such present location and the North end of the dam as may be mutually agreed upon between Lessee and the City Manager Said tract of land being further identified by the map attached to this lease and labeled as Exhibit B. 2. The consideration for the granting of the leasehold estate herein demised is as follows: Lessee agrees to pay to Lessor on the first day of each month during the term of this lease, a rental of $62.50 per month. In addition, Lessee agrees to pay Lessor 1% of the taxable sales made by Lessee on the leased premises. The team "taxable sales" shall be determined in accordance with Chapter 151 of the Texas Tax Code. That part of Lessee's monthly payment based on taxable sales shall be made on the V day of the month following 20 days from the end of the reporting period for which the payment is determined. Lessee shall furnish Lessor with a copy of the Sales and Use Tax Return filed with the State of Texas when Lessee's 1% payment is made. The payment by Lessee of 1% of his taxable sales to Lessor shall not be considered a tax for any purposes but rather partial consideration paid to Lessor for rental of the premises. 3. The term of this lease is for a period beginning the 1 st day of August, 1997, and ending July 31, 2002. 4. Lessee agrees to pay and discharge all taxes and assessments which now or hereafter may be taxed, assessed, levied, or unposed upon the premises or any improvements placed thereon. 5. Lessee shall provide general liability insurance in the aggregate amount of One Hundred Thousand and No /100 ($100,000.00) Dollars, with Three Hundred Thousand and N01100 ($300,000.00) Dollars per each personal individual injury, and a minimum of Fifty Thousand and No /100 ($50,000.00) Dollars per each personal property damage occurrence on the leased premises for the operation of the commercial lease. 6. It is understood and agreed by and between the parties hereto that the premises covered by this lease are on the watershed to Lake Kickapoo and the primary use of said Lake Kickapoo is as a City water supply for the City of Wichita Falls, Texas, Lessor, and that a secondary use thereof is for the purpose of recreation for the citizens of Wichita Falls and the public generally, and in consideration of the granting of the leasehold interest hereof, Lessee covenants and agrees as follows: (a) Lessee agrees that any and all future buildings placed on the leased premises shall be on a site approved by the Lessor. (b) Lessee agrees to operate a general store in the main building located on Tract No. 1, and to stock good quality merchandise such as is kept in like places of business, specifically ice, soft drinks, staples, convenience store type groceries, fishing tackle, and if desired, boats and motors for rent to patrons, motor fuel, gasoline, oil, and etc. Enumeration of the specific items is not a limitation, but is a designation of the class of the stock of merchandise to be stocked by the Lessee. Lessee agrees that prices to be charged for such merchandise and services shall be comparable with convenience store prices charged in the city of Wichita Falls. (c) Lessee may, at their option, build any dock, fence, pier, or any other structure on the leased premises with the prior written approval of the City Manager as to location, size and quality. (d) Lessee agrees that they will keep the said store on said Premises open for the public for business at all reasonable hours, including such hours that are necessary to the service to patrons for fishing tackle, boats, motors, fishing bait; and that the same shall be kept open for not less than six (6) hours out of each twenty -four (24) hour day, at least six (6) days a week. Hours will be posted on exterior of building in public view. (e) The leased premises shall be kept clean by the Lessee and they shall provide for disposal facilities for water matter, trash, and garbage as required by the Lessor, and particularly that said premises shall be kept free from anything that would likely contaminate the water in said Lake Kickapoo. Sewage disposal facilities shall be provided by the Lessee in accordance with the requirements of the Health Department of the City of Wichita Falls, and the requirements of the Health Department of the State of Texas. (fl Lessee agrees that no livestock shall be kept on the leased Premises designated Tract No. 2. Livestock is permitted for personal use on that portion of Tract 1 identified in Exhibit A. The area used for livestock shall be completely fenced. The premises shall be kept clean and free of all paper, cans, and garbage in accordance with City of Wichita Falls ordinance requirements now or hereafter enacted; and all garbage shall be kept in containers which shall be furnished in sufficient quantities to meet the requirements of keeping the premises clean and free from any debris or trash. (g) Lessee agrees to use a reasonable degree of care to prevent improper conduct on the part of any person or persons on the premises, including members of their own family or their guests, while on or near the premises; that the premises herein leased shall be used for no purposes in violation of any penal law of the State of Texas, or in violation of any of the laws of the City of Wichita Falls, or any rules and regulations with reference to the conduct and maintenance of Lake Kickapoo. (h) Lessee agrees that they will not assign this lease and will not sublease any part of the premises without first having obtained the written permission of the City Manager. Lessee agrees that they will notify Lessor prior to placing said lease for sale or offering for assignment or subleasing all or any part of the premises. However, Lessee is hereby specifically granted the right, at their options, to enter into a partnership with a third party either in the present business or for the expansion thereof, so long as Lessee continues to actively manage such business, and Lessor shall be notified of such change as soon as practical after it occurs. (i) Lessee agrees that they will keep a record of all taxable transactions and further agree that the Lessor may at any time, at its own expense, audit and check the Lessee's records in order to verify all amounts which may be due Lessor under the terms of this agreement. (j) Lessee agrees to construct a water system of some kind or character adequate to meet the needs of their sanitary toilets and agrees that they will keep septic tanks to take care of waste matter, such water system and septic tanks to be approved by the Health Department thereof. (k) Lessee agrees to keep the premises and principal fixtures thereon in good condition; reasonable use and wear thereof and acts of the elements, fire, and acts of God only excepted. 7. It is agreed that if the Lessee violates any provision of this contract, either in whole or in part, or if the Lessee fails on their part to obey the future rules and regulations for Lake Kickapoo as may be propounded by the Lessor, or if in the opinion of the Lessor, the Lessee becomes an unsatisfactory tenant, because of their failure to meet the general wants of the public, or of their failure to render any service to the general public as outlined herein, or should the Lessee fail to conform to the terms of this contract, or any one of them, then this lease may be terminated by the Lessor's written notice of termination, and the Lessee shall have sixty (60) days from the date of such termination to either dispose of their property to some person who would be acceptable to Lessor as a future tenant, or to remove their improvements and personal property from the leased premises; provided, however, that they shall not damage any real or personal property belonging to this Lessor, or any other Lessees of this Lessor in so moving their property from the premises. 8. In the event that the Lessee does not dispose of their interest at the expiration of the sixty (60) day period, Lessor shall have the right to take possession of the same in its entirety and Lessee agrees that Lessor may dispose of such property either at public or private sale to the highest acceptable bidder, and the proceeds shall be applied, first, to the expense of holding same; second, to any indebtedness owed Lessor by Lessee, and the remainder, if any, shall be paid to Lessee. 9. It is further mutually agreed by the parties hereto that this contract is performable in Wichita County, Texas, and that the monies due under such contract are payable at the office of Lake Lot Administration in the Memorial Auditorium in the City of Wichita Falls, Wichita County, Texas. written. IN TESTIMONY WHEREOF, witness our hands this the day and year first above City of Wichita Falls, Texas By: James Berzina, City Manager Attest: City Clerk Signature (Don Rakestraw) Signature (Linda Rakestraw) HC 51 Box 68P Holliday, Texas, 76366 Approved as to Form: Assistant City Attorney 0 STATE OF TEXAS § COUNTY OF WICHITA § BEFORE ME, the undersigned authority, on this day personally appeared James Berzina, City Manager for the City of Wichita Falls, a municipal corporation, known to me to be the person and officer whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the said City of Wichita Falls, a municipal corporation, for the purposes and consideration therein expressed and in the capacity therein stated. 1997. GIVEN UNDER MY HAND AND SEA, OF OFFICE this day of Notary Public, State of Texas STATE OF TEXAS § COUNTY OF WICHITA § This instrument was acknowledged before me on the day of 1997, by Don Rakestraw. Notary Public, State of Texas STATE OF TEXAS § COUNTY OF WICHITA § This instrument was acknowledged before me on the day of 1997, by Linda Rakestraw. Notary Public, State of Texas EAST 23$7 0' TO rmE MORTNEAST CORNER OF THE A.T.M.C. SURWy. ROCK 111 EXHIBIT A of I i -old OZ 0 s �.• 01 PLACE OF OEpNN9JG F11 36e — — — — N8912.00•E WS, TRACT NUMBER 1 u5a 1•.200 /. M. ROAD N0. 366 c c c 1 s NIGH WATER LINE 0 ®IBIT B a?* 00'e 331.0• ru �� O TRACT TWO 3 _ ! W. 326.3' N NIGH WATER LINE 0 ®IBIT B