HomeMy WebLinkAboutItem 05 - Grapevine Heritage Foundation QTEM # ��
MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: BRUNO RUMBELOW, CITY MANAGER ��2
MEETING DATE: NOVEMBER 3, 2009
SUBJECT: APPROVAL OF THE TERMINATION OF LEASE AND OPTION
TO PURCHASE AGREEMENT BETWEEN THE CITY OF
GRAPEVINE AND THE GRAPEVINE HEf�ITAGE FOUNDATION
RECOMMENDATION: '
The City Council to consider approval of the Termination of Lease and Option to
Purchase agreement befinreen the City of Grapevine and the Grapevine Heritage
Foundation.
BACKGROUND:
The original lease between the Grapevine Heritage Foundation and the City of
Grapevine was executed in 2001. It established the City of Grapevine as the
Landlord/Property Owner of the Palace Arts Center and the Grapevine Heritage
Foundation as the Tenant.
The lease was put in place so that Certificates of Obligation could be sold to pay for the
renovations and reconstruction of the Palace Arts Center. The lease stated the premises
would be used for performances, concerts, arts and civic functions and was to be
managed by staff within the Development Services and/or City Manager's office.
The management of the Palace Arts Center has shifted and is currently operating under
the Convention & Visitors Bureau. Therefore, a Termination of Lease agreement is
needed to reflect this change.
The Grapevine Heritage Foundation board has reviewed this document and is in full
agreement with its content.
The Staff has reviewed the terms of the agreement and recommends approval.
�
October 28,2009(8:02AM)
STATE OF TEXAS § MUTUALLY AGREED
§ TERMINATION OF LEASE
COUNTY OF TARRANT § AND OPTION TO PURCHASE
CITY OF GRAPEVINE § AGREEMENT
WHEREAS, the parties, the City of Grapevine (the "City") and the Grapevine
Heritage Foundation (the "Foundation") entered into a Lease and Option to Purchase
Agreement (the"Agreemenf") on the 17th day of July, 2001; and
WHEREAS, the parties wish to fully amend and eliminate the rights and
obligations of the parties to the Agreement through the termination of the Agreement;
and
WHEREAS, consistent with the acts of the parties during the current fiscal year,
the parties wish to establish the effective date of this termination as October 1, 2008; and
WHEREAS, the parties recognize that the debt previously issued for the Palace
Theater has not been paid in full; and
WHEREAS, the termination of the Agreement will allow the City direct use of
the Palace Theater without the encumbrance of the Agreement; and
WHEREAS,both parties desire to enter into this termination agreement;
NOW, THEREFORE, for and in consideration of the premises contained herein,
the receipt and sufficiency of which are hereby confirmed, the parties, City and the
Foundation, do hereby amend said Subject Agreement as follows:
Section l; All matters stated hereinabove are found to be true and correct and
are incorporated by reference into the body of this document.
Section 2: The Foundation stipulates and agrees that as a condition of this
termination, the Foundation shall no longer have any claim or entitlement to proceeds
from the City's festivals, past, current, or future.
Section 3: The Agreement is hereby terminated with an effective date of such
termination being October l, 2008. For good and valuable consideration and to the
extent authorized by law, Landlord conveys to Tenant the option to purchase the
Premises at such times as all of the Certificates of Obligation, or refunding Bonds, have
been paid in full on the condition that the Premises would continued to be used for the
same uses as allowed and authorized under this Lease and for the current market value of
the Premises as reflected in the City's Financial Statement, less normal depreciation as
applied in accardance with the Public Finance Officer's rules and guidelines.
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Upon execution, the parties shall no longer have any other rights or obligations to
each other based on the Agreement.
This document shall be in force and effect from and after both parties sign as
approved.
THE CITY OF GRAPEVINE, TEXAS
By:
~' Bruno Rumbelow, City Manager
GRAPEVINE HERITAGE FOUNDATION
By:
Title:
CORPORATE ACKNOWLEDGMENT:
�
THE STATE OF TEXAS
COUNTY OF TARRANT
Before me, the undersigned, on this day personally appeared of
the Grapevine Heritage Foundation, proved to me through the presentation of a valid
Driver's License to be the person whose name is subscribed to the
foregoing instrument and acknowledged to me that he/she executed the same for the
purposes and consideration therein expressed. Mr./Ms. furthermore
attested that he/she is signing this in his/her capacity as
of the Grapevine Heritage Foundation, and that such capacity
makes his signature bind the Grapevine Heritage Foundation.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of
, 2009.
My Commission Expires:
Notary Public in and for the State of Texas �
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