City Council Agenda ltems and Gontracts, Leases or Agreements. City Council Meet ng Date Agenda ltems Only. øü.c]'r rr Date. L * l.-zbtt.

Transcription

1 Gity of Fayetteville Staff Review Form City Council Agenda ltems and Gontracts, Leases or Agreements A. 7 Page 1 of City Council Meet ng Date Agenda ltems Only Yolanda Fields Development Services Community Services Submitted By Division Department Action Required: Approval lease agreement with Friendship Community Care lnc. on 2.2 acres located on Huntsville Road (south of the current Seven Hills Transitional Housing Facility) Cost of this request Category / Project Budget Program Category / Project Name Account Number Funds Used to Date Program / Project Category Name Project Number Remaining Balance Fund Name Budseted ttem l-1 Budget Adjustment Attached l-l -h,r[f ' Departmerit-Dlòector øü.c]'r rr Date Previous Ordinance or Resolution # Original Contract Date: Original Contract Number: -PJ s.. t5-"-l* Finance and lnternal Services Director L * l.-zbtt Date 6-'l-tt TËËïi:üö Po3 : 57 RcvD Received in Mayor's Office Recommends approval of lease Revised January 15,2009

2 Page 2 of 8 THE CITY OF FAYETTEVILLE, ARKANSAS DEPARTMENT CORRESPONDENCE CITY COUNCIL AGENDA MEMO To: Mayor and City Council Thru: Jeremy Pate, Director of Development S"*i"", S From: Yolanda Fields, çs Oir""ffi Date: June 3, 201I \ Subject: Huntsville Property Lease PROPOSAL: Friendship Community Care,Inc. is apnvate, non-profit organizatíon serving individuals with developmental disabilities in ten counties of the Arkansas River Valley region and waiver services in the entire state. Developmental disabilities include intellectual disability, epilepsy, cerebral palsy and similar disorders. The purpose of the organization is to provide supports and services to individuals and families that will allow them to be independent and productive citizens. Friendship Community Carc, Inc. began operations in 1972 by providin g day care services to preschool and school age children. During that first year, two staff members served twelve children. From this beginning, the necessity for additional services has driven the growth of the organizafion. Today, Friendship serves over five hundred individuals in a fifteen-county area. This organization has been providing services to this area since the beginning of A Fayetteville office was opened at the beginning of The City of Fayetteville would be entering into a long term lease with Friendship Community Care, [nc. for city owned property south of the current Seven Hills Transitional Housing facility. If funding is obtained by this organization the property will be used to construct a housing facility for individuals with developmental disabilities. RECOMMENDATION: Staff recommends approval of lease for 2.2 acres located on Huntsville Road (south of the current Seven Hills Transitional Housing Facility) to BUDGET IMPACT: None

3 Page 3 of 8 ARKANSAS Departmental Gorrespondence TO: Mayor Jordan Cify Council Kit \{illiams City Attorney Jason B. Kelley A s s istønt C ity Atto r ney CC: Yolanda Fields, Community Services Director,/"\. f FROM: Kit Williams, City Attorney q( -çn DATE: June 7,2011 RE: Lease Agreement On December 7,2004, the City of Fayetteville leased about 2.2 acres of its property immediately south of the Seven Hills Transitional Housing Facility on Huntsville Road to Sage House, a non-prof,rt corporation formed to provide transitional housing for Fayetteville citizens. "The primary consideration for the City is Sage House's agreement in paragraph 4 to serve Fayetteville citizens by promptly providing its transitional housing project for needy Fayetteville citizens.'promptly providing its transitional housing project' means that Sage House shall have such housing available no later than December 1, " Paragraph 3 of Lease Agreement Unfortunately, Sage House was unable to raise sufficient funding to construct its housing project and is no longer very active. Sage House was officially notified last month that its Lease Agreement was terminated because it did not build such transitional housing. Yolanda Fields has been working with Friendship Community Care,Inc., a nonprofit corporation which has successfully provided day care or housing services for almost four decades in Arkansas. This charitable corporation desires to enter into the same type of lease agreement we had with Sage House, but probably has the expertise and experience to build a facility on our land. City Staff recommends we enter into such a contraçtwhich I have drafted for your consideration.

4 Page 4 of 8 RESOLUTION NO. A RESOLUTION TO APPROVE A LEASE AGREEMENT OF ABOUT 2.2 ACRES WITH FRIENDSHIP COMMUNITY CARE, INC. TO SERVE DEVELOPMENTALLY DISABLED FAYETTEVILLE CITIZENS WHEREAS, on December 7, 2004, the Fayetteville City Council approved Resolution No and a lease agreement with Sage House, Inc. for 2.2 acres of city property immediately south of the Seven Flills Transitional Housing facility; and WHEREAS, unfortunately Sage House was unable to construct its transitional housing project so that its lease has been terminated; and \ryhereas,, a non-profit charitable corporation desires to lease this property in order to construct and operate a facility to provide housing services for developmentally disabled Fayetteville citizens. NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARI(ANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves the Lease Agreement with attached as Exhibit "4" and authorizes Mayor Jordan to sign this Lease Agreement PASSED and APPROVED this 21't day of June,20ll. APPROVED: ATTEST: LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer

5 Page 5 of 8 LEASE AGREEMENT This Agreement made and entered into this 2L't day of June, 207L, by and between the City of Fayetteville, Arkansas, Lessor, and Friendship Community Care, Inc., Lessee, Witnesseth: WHEREAS, is a non-profit corporation established and dedicated to provide housing services for developmentally disabled citizens; and WHEREAS, providing housing services for developmentally disabled citizens is a valid public purpose; and WHEREAS, will provide such services to Fayetteviile citizens within the City of Fayetteville, NOI L THEREFORE, the City of Fayetteville and Friendship Community Care, Inc. agree as follows: 1. Leased Premises. For and in consideration of Friendship Community Care, Inc.'s promise to promptly provide housing services for developmentally disabled Fayetteville citizens and the other covenants and agreements herein entered into and agreed upon by as obligations to the City of Fayetteville, the City lets, leases and demises unto, subject to the terms and conditions contained herein, the following described property situated in Washington County, Arkansas. A part of the Northeast Quarter (NE %) of the Northeast Quarter (NE %) of Section Twenty-two (22), Tovnship Sixteen (16) North, Range Thirty (30) West of the 5th Principal Meridian, being more particularly described herewith as follows: Beginning at a point South 02" 47' 36" East feet from the Northwest corner of the NE % of the NE % of said Section 22, said point being on the West 40 acre tract line; thence South 87o 50'2I" West feet; thence South 02 47' 36" West feet; thence North 87o 50' 21" West feet to the V/est line of said 40 acre tract; thence along said west line North 02" 47' 36" \Mest feet to the Point of Beginning, containing2.z0 acres, more or less, being subject to rights-of-way and easements of record.

6 Page 6 of 8 To have and to hold said premises unto the said Friendship Community Care, Inc. for and during the term herein stated, subject to the covenants, terms and conditions herein contained, 2. Tetm. This lease shall commence on July 1,,201'1, and shall extend for a term of Ninety-Nine (99) years, ending at midnight on ]une 30, Consideration. The primary consideration for the City is Friendship Community Care, Inc.'s agreement in paragraph 4 to serve Fayetteville citizens by promptly providing its housing services for developmentally disabled Fayetteville citizens. "Promptly providing its housing services for developmentally disabled Fayetteville citizens" means that Friendship Community Care,Inc. shall have its facility available no later than uly 7, 2016, unless an extension is agreed to by City Council Resolution before that date. 4. Use. agrees to use the lease premises for the purpose of constructing, operating and maintaining a housing services for deveiopmentally disabled citizens facility. If at any time the property ceases to be used for this purpose, the lease shall terminate. agrees to furnish housing services for developmentally disabled Fayetteville citizens and residents throughout this lease period. shall deliver quarterly written reports to the Mayor's office concerning the number of Fayetteville citizensf residents served or otherwise assisted by Friendship Comrnunity Care,Inc. 5. Improvements. may make any such improvements as are necessary to establish and provide housing services f.or developmentally disabled citizens. Design for any such improvements shall be approved by the City of Fayetteville. Upon termination of this lease, all improvements shall become the property of the City. 6. Taxes. Friendship Community Cate,Inc. shall pay any and all ad valorem taxes and specíal improvement district taxes levied and assessed against said premises and the improvements located thereon during the term of this lease. 7. Notices. All notices, requests, demands and other communications required by or permitted hereunder shall be in writing and shall be directed to the following: City of Fayetteville 113 W. Mountain St. Fayetteville, AR North University Russeliville, AR

7 Page 7 of 8 8. Assignment. shall not assign this lease or sublet the lease premises without prior written consent of the City. Any such assignment or subletting shall in no way relieve from liability for the obligation imposed by this lease. may only be released frorn liability for the obligation imposed by this lease by a specific written release executed by the City. 9. Insurance. A. shall be solely responsible for maintaining insurance on its property, including movables, trade fixtures, furniture, furnishings and inventory, as well as improvements to the property. B, shall, during the term of this lease, maintain public liability insurance. The limits of such public liability insurance shall not be less than $500, per person and $50O per accident. The policy shall contain a clause that the insurer will not cancel or change the insurance without giving the City of Fayetteville, ten days prior written notice, A certificate of such insurance shall be delivered to the City. L0. Maintenance. shall be responsible for all maintenance, routine preventative or corrective, on any and all improvements made to the leased property. 1'I.,. Compliance with Laws, agrees not to violate any law, ordinance, rule or regulation of any governmental authority having jurisdiction of the leased premises. This agreement shall be governed by the laws of the State of Arkansas. 12. Waste/ttuisance. agrees not to commit waste, nor permit waste to result or to be done to or upon the aforesaid premises. Further, agrees not to operate/ nor permit to be operated, nor to exist thereon or therein, any public or private nuisance. 13. Title and Quiet Enjoyment. The City of Fayetteville covenants and warrants that it is the owner in fee simple absolute of the leased premises and may lease said premises as herein provided. Upon the observance and performance of all the covenants, terms and conditions upon Friendship CommuniS Care,Inc.'s part to be observed and performed, Friendship Community Care,Inc. shall peaceably and quietly hold and enjoy the demised premises for the term hereby demised without hindrance or interruption by the City or any other person or persons lawfully or equitably claiming by, through or under the City, subject to the terms and conditions of this lease. 3

8 Page 8 of 8 '14. Entire Agreement, This lease agreement contains the entire agreement of both parties hereto, and no other oral or written agreement shall be binding on the parties hereto IN WITNESS WHEREOF, the parties hereto have hereunto set their hand and seals on this the day of une, FRIENDSHIP COMMUNITY CARE,INC. CITY OF FAYETTEVIIIE, ARKANSAS Name: TOM HILL Title: Vice President of Operations Name: LIONELD JORDAN Title: Mayor WITNESS: ATTEST: Name: Title: SONDRA E. SMITH, City Clerk