15258 )
1 RESOLUTION NO. 15,258
2
3 A RESOLUTION TO APPROVE A MODIFICATION OF THE LEASE
4 AGREEMENT BETWEEN THE CITY OF LITTLE ROCK, ARKANSAS,
5 THE LITTLE ROCK ADVERTISING & PROMOTION COMMISSION,
6 AND FWH II LITTLE ROCK,LLC,TO DEFER THE RENTAL PAYMENT
7 DUE APRIL 1,2020,JULY 1,2020,AND OCTOBER 1,2020,UNTIL EIGHT
8 (8) PAYMENTS TO BE MADE IN 2021 AND 2022; TO CONSIDER A
9 FURTHER MODIFICATION OF TERMS OF THE LEASE AGREEMENT
10 OCCASIONED BY THE COVID-19 PANDEMIC; AND FOR OTHER
11 PURPOSES.
12
13 WHEREAS,the steps taken by the Federal, State, County and Local Governments in response to the
14 COVID-19 Pandemic have had an adverse impact upon certain industries, and particularly on the tourist
15 industry, as a result of cancellation of hotel reservations,availability of hotel or motel space that complies
16 with social distancing guidelines,and the cancellation of conventions and expositions;and,
17 WHEREAS,the lease agreement entered on February 28, 2013 ("the Agreement"), between the City
18 of Little Rock, Arkansas ("the City"), the Little Rock Advertising & Promotion Commission ("the
19 Commission"), and FWH II Little Rock, LLC ("Fairwood"), has been under discussion because of
20 requirements of quarterly rental payments to be made by Fairwood during this pandemic;and,
21 WHEREAS,the Commission has recommended a minor modification of the requirements, a copy of
22 which is attached as Exhibit 1,and on Tuesday,June 23,2020,approved a resolution that would accomplish
23 this modification.
24 NOW,THEREFORE,BE IT RESOLVED BY THE BOARD OF DIRECTIONS OF THE CITY
25 OF LITTLE ROCK,ARKANSAS:
26 Section 1. The modification of the Agreement between the City, the Commission, and Fairwood, as
27 to quarterly rental payments,a copy of which is attached as Exhibit 1, is approved.
28 Section 2. The City understands and supports the efforts of the Commission and Fairwood to work
29 through issues that have been occasioned by the COVID-19 Pandemic.
30 Section 3. The Mayor and City Clerk are authorized to execute a document in substantially the same
31 form as that attached as Exhibit 1 to this resolution.
32 Section 4. Severability. In the event any title, section, paragraph, item, sentence, clause, phrase, or
33 word of this resolution is declared or adjudged to be invalid or unconstitutional, such declaration or
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1 adjudication shall not affect the remaining portions of the resolution which shall remain in full force and
2 effect as if the portion so declared or adjudged invalid or unconstitutional were not originally a part of the
3 ordinance.
4 Section 5. Repealer. All laws,ordinances,resolutions,or parts of the same,that are inconsistent with
5 the provisions of this resolution are hereby repealed to the extent of such inconsistency.
6 ADOPTED: July 7,2020
7 ATTEST: APPROVED:
8
9 ,
10 Allison Segars,Depu 2ity Clerk Frank Scott,Jr., or
11 APPROVED AS TO LEGAL FORM:
12 ` 42A4
13
14 Thomas M. Carpenter,City Attorne
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1 Exhibit 1
2
3 LEASE MODIFICATION RELATED TO
4 QUARTERLY PAYMENT OF ANNUAL RENT
5
6 The parties, as evidenced by their signatures below, modify the terms of their lease dated as of
7 February 28, 2013 ("Lease"), by and among the City of Little Rock, Arkansas, the City of Little Rock
8 Advertising and Promotion Commission (together, "Lessors") and FWH II Little Rock, LLC ("Lessee")
9 only as follows:
10 Lessee's quarterly payments of Annual Rent due on April 1, 2020, July 1 2020, and
11 October 1,2020,under the original terms of Section 5.1 of the Lease,which together total
12 One Hundred Twelve Thousand, Five Hundred Dollars($112,500.00) ("Deferred Rent"),
13 are now due in eight (8) equal payment amounts of Fourteen Thousand, Sixty-Two and
14 50/100 Dollars ($14,062.50) to be made along with and in addition to Lessee's quarterly
15 payments of Annual Rent due during calendar years 2021 and 2022 under the original terms
16 of Section 5.1 of the Lease.
17 Notwithstanding the foregoing, in the event Lessee obtains approval to assign the Lease to
18 a third party, any unpaid portion of the Deferred Rent must be paid in whole by Lessee
19 prior to effectuating the assignment.
20
21 SO AGGREED: LESSORS:
22 City of Little Rock, Arkansas
23
24 ByYc^/1
25 Title: Mayor
26
27 Date:"Ifj,2D acv
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29 Little Rock Advertising and Promotion Commission
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31 By:
32 Title: Chair
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34 Date:
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1 LESSEE:
2 FWH II Little Rock,LLC
3 By: Fairwood Capital,LLC
4
5 By:
6 Title:
7
8 Date:
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