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ORDINANCE NO. 17,438
AN ORDINANCE APPROPRIATING FUNDS AND AUTHORIZING A
LEASE AGREEMENT WITH PULASKI COUNTY UNITED WAY FOR
LEASE OF THE FIRST LEVEL OF THE MCFADDEN BUILDING (615
WEST MARKHAM STREET) FOR THE DEPARTMENT OF HOUSING
AND NEIGHBORHOOD PROGRAMS.
WHEREAS, the Housing and Neighborhood Programs Department was formed from the
Neighborhoods and Planning Department; and
WHEREAS, since creation of the new department these employees have continued to
occupy the same offices; and
WHEREAS, approval and completion of this proposal will allow the new department to
operate and function from a single location and allow the approved personnel addition of the
Planning and Development Department to move into offices now occupied by the Housing and
Neighborhood Program Department.
NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF DIRECTORS OF
THE CITY OF LITTLE ROCK, ARKANSAS:
SECTION 1. The City Manager is authorized to appropriate funds and to enter into a Lease
Agreement with Pulaski County United Way for lease of the first level of the McFadden Building
(615 West Markham Street) for the Department of Housing and Neighborhood Programs.
SECTION 2. Funding will be- available by appropriating $16,845.36 for lease cost for the
remainder of 1997 beginning May 1, 1997, for the Administrative and Neighborhood Programs
Division of the Department of Housing and Neighborhood Programs. The appropriated amount of
$16,845.36 will come from salary savings in the Planning and Development Department, account
number 100-215-1510-1010.
SECTION 3. The lease is for two years with Year I costs at $58,670 and Year II at $60,958.
The CDBG Housing Division currently leases office space in this building.
(Comaed 4 -2 -97)
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PASSED: MARCH 18, 1997
ATTEST:
(�2 O�s- -'° n m
ROBBIE HANCOCK
CITY CLERK
APPR VED AS TO FORM:
J t-417
THOMAS M. CARP TER
CITY ATTORNEY
APPROVED: `
JI DAILEY
M OR
270
� X18 /t;♦ 1� 9341i� (illllll� I� � i
AGREEMENT OF LEASE
THIS AGREEMENT, entered into this 5th day of March, 1997, by and between United Way of
Pulaski County, Inc., P.O. Box 3257, Little Rock, Arkansas 72203 who, whether one or more,
will hereinafter be designated as Lessor, and City of little Rock, who, whether one or more, will
hereinafter be designated as Lessee,
WITNESSETH:
Lessor leases to Lessee the following described premises in the City of Little Rock,
State of Arkansas, to-wit:
First Floor, 615 West Markham, except room #101, 102 and 103 as delineated on the
attached sketch all in
MacFaddcn Building
615 West Markham
Little Rock, Arkansas 72201
together with parking spaces 5 - 10 in the adjacent parking lot.
The term of this lease shall commence on April 1, 1997 and end on March 31, 1999.
The Lessee agrees to pay to Lessor the following rental, to -wit:
1. April 1, 1997 - March 31,1998 $4,889.17 per month
(558,670.00 per year)
2. April 1, 1999 - March 31, 19.99 SS,079.94 per month
($60,958.00 per year)
Lessee agrees to pay the rental in monthly installments, in advance, on the 1st day of
each month. The payments-are to be made to United Way of Pulaski County or to such other
person and at such other place as the Lessor may designate. Any installment of rent which is not
paid when due shall bear interest at the rate of ten percent (100K) per annum or allowed by law in
the State, of Arkansas from the due date until paid,
The parties hereto covenant as follows:
Lessee will promptly pay the stipulated rental at the place designated.
2, The leased premises will be used by the Lessee only for the following purpose, to-
wit: General office use.
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�ln /)♦ 19)♦ IV 34M M WW _ 111M
3. The Lessee will not do, or permit anything to be done, in, upon or about the leased
premises that increases the fire hazard beyond that which exists by reason of the ordinary use or
occupancy of the premises for the purpose specified in paragraph 2 hereof. Lessee agrees to pay
to Lessor, on demand, any increase in fire insurance premiums on the building and improvements
which Lessor may have to pay because of Lessee's use or occupancy of the premises. Lessee will
not do or permit to be done anything which will make uninsurable the leased premises or any part
thereof.
4. Lessee will not do or permit to he done anything, in, about or upon the leased
premises that interferes with the rights of, or tends to annoy, other tenants of Lessor, that conflicts
with the State or Municipal laws, or the regulations of the Fire Department or Board of Health; that
creates a nuisance; that is dangerous to persons or property.
5. This lease shall not be assigned or any part of the leased premises sublet without the
written consent of the Lessor first endorsed heron. If Lessor consents to an assignment or
subletting, the Lessee shall remain liable for payment of the specified rental and the due performance
of all the agreements and conditions herein.
6. Lessor's interest in this lease shall pass to and vest in Lessor's heirs, devisees,
successors and assigns.
7. Lessee will not make any alterations, changes or improvements without Lessors prior
written consent. if consent is given, then the cost of such alterations, additions or improvements
shall be paid by lessee. Upon the termination of this lease, Lessor shall have the right to retain the
premises as altered, changed or improved by Lessee, or Lessor may require the Lessee to restore the
premises to the conditions existing as of the date Lessee went into possession of the leased premises
under the terms of the lease.
8. The Lessor will pay the taxes assessed against the real property and the improvements
thereon, and will keep the outside walls and the roof in repair. provided, however, that the leaaor
will never be held liable for damages for failure to repair the roof or outside walls. Lessor is to have
the exclusive use of the roof.
9. Lessor will keep the leased premises, including plumbing, heating and air conditioning
units, parking area, sidewalks, sewer lines, water pipes, gas pipes, electric wiring fixtures, floors,
plaster, exterior doors, plate glass and glass in repair and will do all necessary painting throughout
the term of this Lease. Upon the expiration of this lease, in course or by breach of any of its
provisions, Lessee will restore the leased premises to lessor in as good condition as when possession
was taken by lessee, ordinary wear and tear is expected.
to. Lessor stall pay all utility bills.
It. No sign, picture, advertisement, or notice except on the glass doors or windows shall
be displayed on any part of the outside of said building or on or about the premises hereby demised
without the previous consent in writing of the Lessor, and the Lessor may remove the same without
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1sMl 05 93AM M M MILE _ —
notice to the Lessee and at Lessees expense. Upon termination of this lease, Lessee will remove any 273
sign, advertisement or notice painted on or affixed to the leased premises, and restore the place it
occupied to condition which existed as of the date this Lease takes effect.
12. Lessee assumes all risk of and liability for damages to persons or property arising the
term of this Lease from the present or future condition of the leased premises, excluding the outside
walls and roof, both latent and manifest, and agrees to save the Lessor harmless therefrom.
13. In the event of a substantial destruction (substantial destruction as herein used means
destruction which will cost 50% or more of the value of the improvements prior to destruction to
restore such improvements) of the leased premises by fire, cyclone, or act of God, this Lease may be
terminated on notice from the Lessor to the Lessee, or Lessor may elect to rebuild for the use of the
Lessee, and in that event Lessor shall notify Lessee within sixty days after said destruction, and shall
then proceed with all reasonable diligence, delay due to adjustment of insurance loss and other
unavoidable delays excepted, to restore the said premises; and this lease shall continue in ftdl force
and effect, except that, as the sole and exclusive remedy of the Lessee, there shall be a proportionate
abatement of the rent payable by the Lessee during the time the said premises are untenantable or in
part untenantable. In the event of a partial destruction (partial destruction as herein used means
destruction which will cost less than 50% of the value of the improvements prior to destruction to
restore such improvements) of the leased premises by fire, cyclone, or act of God, the Lessor will
repair said leased premises for the use of the Lessee, and this lease the shall continue in full force and
effect, except that, as the sole and exclusive remedy of the Lessees there shall be a proportionate
abatement in written the rent payable by the Lessee during the time the leased premises are
untenantabie or in part untenatttable.
14. This lease shall not be renewable except by written agreement between Lessor and
Lessee. Should Lessee be allowed to remain in possession after termination of this Lease, either in
course or by reason of the breach of any of its processions by the Lessee, or should Lessor accept
any rent after such termination, then neither the remaining in possession nor the acceptance of the
rent shall be deemed it renewal of this Lease or tenancy from year to year, but, on the contrary, the
status of the Lessee shall be deemed that of a tenant at will, and the Lessee will immediately vacate
the premises upon being notified to do so by the Lessor.
15. Lessee will not permit the leased premises to remain vacant or unused for the purpose
for which leased for more than thirty consecutive days without the consent of the Lessor.
16. The Lessee hereby subordinates this lease to any mortgage, deed of trust or
encumbrance which the Lessor may have placed, or may hereafter place, on the premises. Lessee
agrees to execute, on demand, any instrument which may be deemed necessary or desirable to render
such mortgage, deed of trust, or encumbrance, whenever made, superior and prior to this Lease.
17. In the event of a breach of any of the terms or conditions hereof by Lessee, Lessor
may;
(a) take possession of the leased premises and lease the same for the account
of the Lessee upon such terms as may be acceptable to Lessor, and apply the
�9341=1 M M ICE Illy
proceeds received from such leasing, after paying the expenses thereof, 274
toward the payment of the rent which the Lessee herein is obligated to pay
18. Should bankruptcy, insolvency or receivership proceedings of any kind be instituted
by or against Lessee, or any one of the Lessees if more than one are included in the designation
"Lessee" herein, or should Lessee's interest in this Lease, or the interest of any one of the Lessees, if
more than one are included under the designation "Lessee" herein, devolve or pass by operation of
law to any other person or corporation, then, at the option of Lessor, that shall be considered a
breach of the during terms and conditions of this Lease, and Lessor may pursue the remedies
provided for in Paragraph 17 hereof.
19. On termination of this Lease in course Lessee agrees to surrender possession of the
leased premises demand. Failing to do so, Lessee will, in addition to the damages generally
recoverable, be Gable to Lessor for all damages Lessor may sustain, including claims made by any
succeeding tenant against Lessor which arc founded upon delay or failure in delivering possession
of the leased premises to the succeeding tenant.
20. Time is of the essence of each of the agreements and conditions herein to be
performed by the Lessee. The failure of Lessor to insist upon performance of any of the agreements
and conditions herein in any one of more instance shall not be a waiver of the tight thereafter to
insist upon full and complete performance of such agreements and conditions. Receipt by the
Lessor of rent with knowledge of the breach of any of the agreements and conditions hereof shall
not be deemed a waiver of such breach.
21. Any notice provided for herein will be deemed to have been given Lessee when
deposited in registered mail addressed to Lessee, or any Lessee, if more than one are included under
the designation "Lessee" herein, at 615 West Markham Street, Suite 105, Little Rock, Arkansas.
22. Lessee or Lessor will renew or terminate the lease at the end of each lease year with
a ninny (90) days written notice (eg. first renewal/termination notice on of before 3/3111998 and the
second notice on or before 3/31/1999). Lessor may place a "for rent" sign or signs on the leased
premises during the last ninty (90) days this Lease is in force.
23. If the leased premises be subjected to any eminent domain proceedings, the Lease
shall terminate if all of the leased premises are taken or if the portion taken is so extensive that the
residue is wholly inadequate for Lessees purpose, asset out in Paragraph 2 hereof. If the taking be
partial, then Lessees rental shall be reduced in the proportion which the spa" taken bears to the
space originally leased. To such condemnation proceedings Lessee may claim compensation for the
taking of any removable installations which by the terms of this Lease Lessee would be permitted to
remove at the expiration of the Lease, but Lessee shall be entitled to no additional award, it being
agreed that all damages allocable to full fee simple ownership of the entire leased premises shall in
any event be payable to Lessor.
24. Lessor may at any time enter the premises for inspection purposes.
IWO /1M 151M 34MM M M M
275
25. Lessee has examined the premises herein leased, and accepts them in the condition in
which they ere at present. Lessee agrees that no representation of warranty or agreement has been
made by the Lessor or any agent of the Lessor which is not herein expressed.
26. Lessor shall provide janitorial service at least three days per week.
IN WITNESS WHEREOF, THE PARTIES HAVE EXECUTED THIS LEASE ON THE DATE
FIRST WRITTEN ABOVE
LESSOR: UNITED WAY OF PULASKI COUNTY
LESSEE; CITY OF LITTLE ROCK
By: By:
Authorized Agent Authorized Officer or Agent