8522 - 6-18-91287
RESOLUTION NO. 8,522
A RESOLUTION CONSENTING TO THE ASSIGNMENT
OF LEASE AND AGREEMENT, AS AMENDED, FROM
CAMELOT INN - LITTLE ROCK, INC. TO MEHTA
ASSOCIATES, INC. PERTAINING TO THE CAMELOT
HOTEL LEASED PROPERTY; AND OTHER RELATED
LEASES, AS AMENDED, PERTAINING TO THE
CAMELOT HOTEL; AND PRESCRIBING OTHER
MATTERS RELATED THERETO.
WHEREAS, under date of February 17, 1971, the City of Little
Rock, Arkansas, as Lessor, and Camelot Inn - Little Rock, Inc., as
Lessee, entered into a Lease and Agreement (the, "Lease ")
pertaining to, and for construction, operation and maintenance
of, hotel facilities adjacent to and east of Robinson Auditorium
in the City of Little Rock; and,
WHEREAS, the Lessor and Lessee did make and execute a First
Amendment to Lease and Agreement, filed for record on June 23,
1980 and recorded as Instrument Number 80- 26718, whereby the
Lease was amended in the particulars therein set forth; and,
WHEREAS, the City of Little Rock, Arkansas and Little Rock
Municipal Parking Authority, as Lessors, and Camelot Inn - Little
Rock, Inc., as Lessee, did, on the 17th day of February, 1971,
enter into a certain Parking Lease Agreement, as amended, and
simultaneously therewith the Little Rock Auditorium Commission
(now Little Rock Advertising and Promotion Commission) did enter
into an Auditorium Concession Agreement with Camelot Inn - Little
Rock, Inc., as amended, (these two agreements and the Lease and
Agreement mentioned above hereinafter collectively referred to
as the "Leases "); and
7o <K
At0
• • 288
dM
WHEREAS, the Lessee now desires to assign its rights under
the Leases, as amended, to MEHTHA ASSOCIATES, INC. and has
requested that the City consent to same.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
THE CITY OF LITTLE ROCK, ARKANSAS.
SECTION 1. The Board of Directors of the City of Little Rock
hereby consents to the assignment by the Lessee to Mehta
Associates, Inc. of Lessee's rights under the Leases on the
condition that, prior thereto, the Lease and Agreement be
amended by a Second Amendment drafted and duly executed by the
required parties in substantial conformity with the Outline of
Second Amendment attached hereto marked as Exhibit "A" and by
this reference made ,a part hereof and fully incorporate herein.
SECTION 2. The Mayor and City Clerk be and hereby are
authorized and directed to make, execute and deliver the Second
Amendment aforesaid, as well as any and other documentation
necessary and required to effectuate the consent herein granted.
SECTION 3. This Resolution shall be in full force and
effect from and after its adoption.
Adopted:
June 18, 1 991
YOR Sharon Priest
lH
ATTEST: 'D/I/,&
City Clerk Robbie Hancock
`Ru%-
a a a Mxh� IM r r
289
Outline for Second Amendment to Lease
and Agreement
(Camelot Hotel)
I. Clarification of Paragraph 10 of the Lease.
A. Definition of "Full Service Hotel" to mean "first
class convention hotel" and statement of minimum
standards. See Exhibit "A" attached.
B. Agree that if Lessee is making steady progress
toward attaining the first class convention hotel
standard, the City, for 36 months from date of
amendment, will not seek to terminate lease for
failure to operate, manage and maintain a first
class convention hotel.
C. If City, in its discretion, deems that Lessee has
failed to comn_ly with terms of the Second
Amendment, City has the right to declare Lessee
in default and invoke the following procedure:
1. Within 30 days of declaration, City and
Lessee will each select one recognized hotel
operations analyst and the two analyst so
selected will select a third analyst. (An
alternative provision will also provide that
if the City and Lessee can agree in advance
to a single analyst who is mutually
agreeable to both, then the single analyst
shall act instead of the panel.)
2. Within 45 days of declaration, the three
analyst will meet, examine the Hotel and
determine by majority vote whether hotel is
being operated, managed and maintained to
the first class convention hotel standard.
If the three analyst decide that the hotel
is not operated, managed and maintained to
that standard they will report in writing a
list of the deficiencies and the necessary
steps that Lessee must take to attain the
first class convention hotel standard.
3. Lessee shall have 12 months from the date of
said analyst report to cure the deficiencies
and provide satisfactory evidence thereof.
-I-
INS
A1Z
Outline:
i
4. If the Lessee fails to cure the
deficiencies identified, the Lessee will
be in default under the Lease and ths-
City will be entitled to terminate the
Lease and Lessee will vacate and
surrender same.
5. Expense of analysts will be borne equally
by City and Lessee, unless Lessee is
found not to have met first class
convention hotel standards in which event
Lessee shall bear full expense of analyst,
D. When Lessee successfully attains the first class
convention hotel standard, Lessee will throughout
the balance of the term of the Lease and any
renewals thereof operate, manage and maintain the
hotel as a first class convention hotel.
Subsequent _default will entitle City to invoke
analyst procedure and 12 month cure period.
II. Other Terms and Affirmation of existing Lease ard,.,,
Agreement.
A. Such other terms and provisions as are deemed ,
necessary.
B. All other rights and remedies enjoyed by the
Parties under the current Lease and First
Amendment not expressly modified by Second
Amendment remain the same.
III. Parties and those bound.
A. City, current Lessee and current Guarantor will
be parties to the Second Amendment.
B. The extent that current Lease requires prior
consent of Lessee's Mortgagees, such Mortgagees
must consent to Second Amendment.
C. Lessee's successors and assigns must agree to be
bound as well as Guarantor's successors and
assigns.
-2-
290
421 F;
Outline:
Exhibit "A"
The Lessor, Lessee, and Guarantor, for themselves and
their respective heirs, successors and assigns,
acknowledge, confirm and declare that the term "full
service hotel ", as used in the Lease, has meant and does
mean that the Lessee will at all times during the term of
the Lease operate, manage and maintain a first class
convention hotel on the Leased Premises and that said
hotel, including but not limited to, all restaurants,
lounges, meeting rooms, banquet rooms, guest rooms,
lobbies, common areas, related facilities and service, the
delivery of superior service by personnel, buildings,
grounds, furnishings, fixtures, food stuffs, decor,
equipment, signage, vehicles, utensils, linens, supplies,
china, glass, silver, printed materials and any and all
other aspects of the hotel, must be conducted, managed,
operated, performed and maintained at all times in
accordance with the standards of quality and appearance of
a first class convention hotel. In this regard, the term
"First class convention hotel" shall be defined by
comparison,with other hotels and standards in the central
Arkansas area.
Such standards shall be consistent with the followina
minimum criteria: '
a, maintain a state of cleanliness throughout,
b. adequate lighting in all areas,
C. all landscaping, building exteriors, and
interiors, furnishings and decor to be
professionally designed, decorated, coordinated
and periodically replaced and /or rehabilitated,
d. all employees engaged in the delivery of customer
services must_ be trained (a) to project a
professional image through appearance, conduct
and behavior and (b) to perform the task assigned
to them; and,
e. all guest Will be afforded those services and
amenities typically and generally associated with
the operation and maintenance of a first class
convention hotel.
4
:4
.c
y
13W6
A1 4L/