Res 145-2005 10/18/2005RESOLUTION NO. ��o tQV5
RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A
FIVE (5) YEAR COMMERCIAL LEASE FOR APPROXIMATELY 134,456
SQUARD FEET (3.08 ACRES) KNOWN AS LOT 1 BLOCK X, LAKE
KICKAPOO — NORTH, ALSO KNOWN AS KICKAPOO GENERAL
STORE; FINDING AND DETERMINING THAT THE MEETING AT
WHICH THIS RESOLUTION WAS PASSED WAS OPEN TO THE
PUBLIC AS REQUIRED BY LAW.
'WHEREAS, The City has received a request from Cheryl Hutchinson to lease
said City owned property located at Lake Kickapoo; and
WHEREAS, The Ms. Hutchinson purchased the improvements from Fred and
Karen Edge and intends to continue to operate the premises as a store; and
WHEREAS, The City has an interest in continuing economic development and
the provision of convenience to the local residents.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF WICHITA FALLS, TEXAS, THAT:
SECTION 1 . The City Manager is authorized to enter into a commercial lease
with Cheryl Hutchinson for Lot 1, Block X, Lake Kickapoo — North, also known as the
Kickapoo General Store. The term of the lease shall be for 5 years from the date of
signature and the amount will be $100.00 per month plus I% of the taxable sales. The
lease will be reviewed prior to its expiration and will have the ability to be increased up
to 30% at the time of renewal.
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 18 day of October, 2005.
ATTEST:
:ity Clerk
MAYOR
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, hereinafter called Lessor, and Cheryl Hutchinson, 105 Crappie Haven Road,
Holliday, Texas 76366 hereinafter called Lessee, on the 18 day of October, 2005.
WITNESSETH:
1. For an in consideration of money payments herein specified, and the covenants and
conditions herein to be met by the Lessee, Lessor herein does hereby lease to Cheryl
Hutchinson, 105 Crappie Haven Road, Holliday, Texas 76366, Lessee, the following
described lands:
Being a tract of land out of Block 111, A. T. N. C. Survey, Archer County,
Texas, approximately 134,456 square feet (3.08 ACRES) known as Lot 1 Block
X, Lake Kickapoo — North, Also Known As Kickapoo General Store; and being
described by metes and bounds as follows:
Tract 1
13EGINNING 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 corner 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 68 21' 00" East, 658.10 feet to a point, said point is the Southwest
corner 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 corner of this tract;
THENCE North 21 93' 00' Est, 330.00 feet to the Northeast corner of this tract;
THENCE North 68 21' 00" West, 500.00 feet to the Northwest corner of this
tract;
"THENCE South 21 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 68 21' 00" East, 184.21 feet to a point, said point being the
Northeast corner of said Tract 1 -A;
THENCE South 21° 39' 00" West, 166.40 feet to a point said point being the
Southwest corner 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 Location Map A
Tract 2
BEGINNING at the Northeast corner of the A. T. N. C. Survey, Block 111, Archer
County, Texas;
'THENCE West 2,387.0 feet;
THENCE South 87° 00' East 331.00 feet;
THENCE South 3° 00' West 113.0 feet;
THENCE South 86 58' West along the high water line (elevation 1,050), 326.5
feet;
THENCE North 148.0 feet to the beginning corner 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 Location Map B.
2. This 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 $100.00 per month. In addition, Lessee agrees to pay
Lessor 1% of the taxable sales made by Lessee on the leased premises. The
term "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 1 5t 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 the Lessor for rental of the premises.
3. The term of this lease is for a period beginning the 17 day of October, 2005, and
ending October 17, 2010.
4. Lessee agrees to pay and discharge all taxes and assessments which now or
hereafter may be taxed, assessed, levied, or imposed upon the premises or any
improvements place thereon.
5. Lessee shall maintain during the term of the lease general liability insurance in a
minimum of Three Hundred Thousand ($300,000.00) Dollars with a minimum amount of
Fifty Thousand ($50,000.00) Dollars for property damage. Lessee shall furnish Lessor
with a Certificate of Insurance evidencing the required coverage at the time this lease is
executed. The policy shall provide that in the event the insurance is canceled for any
reason the Lessor shall be notified by the insurance provider.
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
lease hold 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 to 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 the 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, Texas.
(f) 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 laws 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 notify prior to
placing said lease for sale or offering for assignment or subleasing all or
any part of the premises. Owner, Lessee is hereby specifically granted
the right, at their option, 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.
Ij) 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 pail 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
generall 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 Property /Lake Lot Administration in memorial Auditorium in the City of Wichita
Falls, Wichita County, Texas.
IN TESTIMONY WHEREOF, witness our hands this the day and year first above
written.
ATTEST: City of Wichita Falls
City Clerk
Darron Leiker, City Manager
Approved as to form: Signature: Cheryl Hutchinson
Assistant City Attorney
105 Crappie Haven Rd,
Holliday, TX 76366
STATE OF TEXAS §
COUNTY OF WICHITA §
This instrument was acknowledged before me on the day of
2005, by Darron Leiker, City Manager of the City of
Wichita Falls.
Notary Public, State of Texas
STATE: OF TEXAS §
COUNTY OF WICHITA §
This instrument was acknowledged before me on the day of
2005, by Cheryl Hutchinson.
Notary Public, State of Texas
Location Map A
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