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HomeMy WebLinkAboutApproving Lease Agreement between the City of South Bend, South Bend Civiv Center Board of ManagersPassed by the Common Council of the City of South Bend, Indiana November 22 M Clerk IRENE K. GAMMON of Common Council Presented by me to the Mayor of the City of South Bend, November 23 _19__16 /"C— City Clerk IRENE K. GAMMON Approved and signed by me �2 3i 19-2-IL ORDINANCE NO. lapkll -74 AN ORDINANCE APPROVING THE FORM AND TERMS OF A LEASE AGREEMENT BETWEEN THE CITY OF SOUTH BEND, INDIANA, THE SOUTH BEND CIVIC CENTER BOARD OF MANAGERS, AND THE ART CENTER, INC., AN INDIANA NOT - FOR - PROFIT CORPORATION, AND AUTHORIZING THE EXECUTION THEREOF PERTAINING TO THE SOUTH BEND CIVIC CENTER. WHEREAS, the South Bend Civic Center Board of Managers has been created under and in pursuance to the provisions of Public Law 220 of the Indiana General Assembly for the year 1975 and all acts amenda- tory thereof or supplemental thereto (hereinafter referred to as the "Board of Managers ") for the purpose of supervising, managing, operating and maintaining the South Bend Civic Center (hereinafter referred to as "Civic Center "); and WHEREAS, the City, the Board of Managers and the Art Center, Inc., an Indiana Not - For - Profit Corporation (hereinafter referred to as "Art Center ") have submitted a Lease Agreement, marked "Exhibit A," attached hereto and made a part hereof, wherein the City leases to the Art Center a portion of the Civic Center for a term commencing as soon as that portion of the premises is ready for occupancy and ending December 31, 1979, for rental in the sum of Three Thousand Dollars ($3,000.00) per month, payable in advance on the first day of each month; and WHEREAS, notice of public hearing on the proposed Lease Agreement before this Common Council was duly given by the required legal publi- cation of notice, and said hearing has been held in accordance with said notice and the governing statute. NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of South Bend, Indiana that: SECTION I. The forms and terms of the Lease Agreement between the City of South Bend, the South Bend Civic Center Board of Managers, and The Art Center, Inc., marked "Exhibit A" and attached hereto are hereby approved. SECTION II. This Ordinance shall be in full force and effect from and after its passage by the Common Council and approval by the Mayor. 11 �- -26 1J_L.: NcARING /(( Z z 7 6 21d READING NOT APPROVED REFERRED PASSED Member of he Common Council C L €D IN CLERK'S G-MCE t4GV 31976 Irene Gammon CITY CLERK, SOUTH BEND, IND, LEASE AGREEMENT AGREEMENT entered into by and between the Civil City of South Bend, Indiana, The South Bend Civic Center Board of Managers, a board created by Ordinance Number 5888 -7.5 of the City of South Bend, Indiana, and pursuant to the provisions of Indiana Code 1971, 19 -7- 18.5 -1 (hereinafter referred to as "Lessors "), and The Art Center, Inc., (hereinafter referred to as "Lessee "), for and in consideration of their mutual promises, covenants and agreements hereinafter set forth and for other good and valuable consideration, the parties here- to agree as follows: 1. Lessors hereby lease to Lessee that portion of the South Bend Century Center located in South Bend, Indiana, described as Building "E" on the plans and specifications for said Century Center dated and filed with the South Bend City Clerk on October 31, 1975, which Building is the Northeastern most portion of said Century Center but excluding those portions of said Building E described on said plans and specifications as E 120 (Lapidary /Ceramics Studio), E 313 (Painting and Drawing Classroom), and the main public corridors on the river and street levels. For reference purposes, the leased premises shall include the areas within the bold border on the drawings which are attached hereto and made a part hereof. 2. The term of this lease shall begin on the date upon which the above described portion of Century Center leased hereunder (hereinafter referred to as "Premises ") is completed, ready for occupancy by Lessee and accepted by Lessee in writing. Acceptance by Lessee shall not be unreasonably ExX ;�; withheld. This Lease shall terminate on December 31, 1979. Provided, however, that this Lease may be renewed at the option of Lessee for an additional term of three (3) years, subject only to an increase in rent equal to the .increase in actual cost of operation (limited to utilities and security costs) applicable to the Premises. 3. The rental for the Premises shall be the sum of Three Thousand ($3,000.) Dollars per month for the term of this Lease, payable in monthly installments of Three Thousand ($3,000.) Dollars in advance on the first day of each month for that month's rental. Rental for a partial month's occupancy shall be at the rate of One Hundred ($100.00) Dollars per day, payable at the beginning of the occupancy. 4. As further consideration for this Lease, Lessee agrees that should it every provide services or programs of instruction for students of the South Bend Recreation Department, said services or programs shall be provided at actual cost with no additional charge for occupancy. 5. Any unused Century Center parking spaces shall be made available to the users of the Premises at no additional charge to Lessee or its users, provided, that the availability of such parking shall be subject to the parking clause of the Agree- ment of Operations between St. Joseph County Hotel -Motel Tax Board of Managers and South Bend Civic Center Board of Managers and the City of South Bend. 6. .Lessors shall furnish to the Premises during the terms of the lease, at their sole expense and cost, water, elec- tricity, heat, air - conditioning, security guard services, and main- tenance service for problems arising in regard to the structure, building equipment, utilities and other maintenance problems requiring more than normal day to day custodial care. Lessors -2- shall keep the common areas and grounds of Century Center maintained at their own expense and in a clean and neat condition. The cost of repairs to the structure, building equipment, utilities and items other than Art Center, Inc. furnishings and equipment shall be borne by the Lessor, and such repairs shall be made within a reasonable time after proper notification by the Lessee of the necessity of such repairs. 7. Lessee shall furnish to the Premises during the term of this lease, at its sole expense and cost, all janitorial supplies and services necessary to maintain the Premises in compliance with reasonable standards to be established by Lessors. Lessee shall also supply at its sole expense, any and all supplies and services necessary to maintain its own furnishings. Should the Premises not be maintained in compliance with such reasonable standards, Lessors shall notify the Lessee in writing of any claimed deficiencies in care or other related problems and the Lessee shall have thirty (30) days to correct any deficiencies. If after the thirty (30) day period, the Lessee has not made - the appropriate corrections, the Lessors shall have the right to perform whatever services are necessary to bring the conditions of the Premises up to such reasonable standards. Any and all expenses incurred by Lessors in so doing, whether for supplies or services, shall be deemed additional rent chargeable to Lessee on the next rent installment. 8. Lessors shall determine the general hours of operation of Century Center. Lessors agree, however, to consult with Lessee concerning said hours of operation. Lessors recognize that the Lessee intends to operate the -3- facility seven (7) days a week and the Lessee's program of activities require that the facility be open to the public and users until late in the evening many days of the week. 9. Lessee shall use the Premises as a community art center, including instructional programs, exhibits, and other matters relative to the fine arts. Lessee shall have full and exclusive control over its own policies and programs. All management of the Art Center and its activities will be the exclusive responsibility and right of the Board of Trustees of the Art Center, Inc. Any expenses incurred by Lessee in the conduct of Lessee's programs shall be borne by Lessee. At all times, it will be the intention of both parties and their staffs to cooperate in the planning and coordination of activities and programs. 10. Lessee shall neither use nor occupy the Premises, or any part thereof, for any unlawful, disreputable, or ultrahazardous purpose. Lessee shall immediately, on discovery of any unlawful, disreputable, or ultrahazardous use, take action to halt such activity. 11. Lessors shall at their sole expense provide comprehensive insurance coverage over the South Bend Century Center, including the Premises, together with waiver of all right to subrogate by such carrier or carriers of any and all claims it may or might have against Lessee. Should the Premises be so injured or damaged by fire, windstorm or other catastrophe as to be rendered untenantable, the rent other- wise due hereunder shall abate during the period the Premises are untenantable. Lessors shall name Lessee and any sublessee as additional parties insured on its general liability policy covering the South Bend Century Center. Lessee shall obtain at its sole expense insurance coverage for the contents of the Premises. Lessors shall have no responsibility for loss of -4- any personal property of Lessee or of Lessee's subtenants or invitees of either or both of them.in the Premises due to theft, mysterious disappearance, fire, windstorm, or other casualty unless any act or omission of Lessors, their employees or agents, shall have prevented Lessee from obtaining and maintaining insurance coverage at reasonable cost against such risks, and in such event Lessors shall have responsibility. Lessee agrees to refrain from acts which are likely to increase the costs of insurance on the building, without first obtaining the written consent of Lessors 12. Lessee has and shall have during the term of this lease the right and power to sublet any part or all of the leased Premises, provided, however that Lessee shall obtain the prior written consent of Lessors in each instance. Any sublease or subleases shall be subject to all of the conditions and limitations of this lease and sublessee(s) take notice hereof. 13. Lessee may at any time during the lease term, subject to the prior written approval of Lessors, make any alterations, additions, or improvements in and to the Premises. Alterations shall be performed in a workmanlike manner and shall not weaken or impair the structural strength, or lessen the value of the building or the premises, or change the purposes for which the Premises may be used. 14. The Lessee shall have a "grace period" of sixty (60) days within which to correct any default hereunder after written notice specifying the default is served upon it by Lessors, and if Lessee shall fail to correct such specified default within said period, then Lessee shall be considered in default under this lease, and the lease may be terminated at the option of the Lessors. Written notice shall be served by -5- U.S. Registered mail on the President of The Art Center, Inc., and be effective upon mailing, postage prepaid. 15. After the service of notice,.or the commencement of a suit, or after final judgment for possession of said Premises, Lessors may receive and collect any rent due and the payment of said rent shall not waive or affect said notice, said suit or said judgment. It is expressly agreed that no waiver nor apparent waiver, nor the failure of Lessors to require strict performance of any condition, covenant or agreement shall estop Lessors from enforcing such condition, covenant, or agreement, nor any other condition, covenant, or agreement shall at any time be implied. At the termination of this lease, by lapse of time or. otherwise, Lessee will yield up immediate possession to Lessors. 16. Any fixtures or equipment that are paid for or installed by the Lessee shall remain the property of the Lessee. Upon termination of this lease, the Lessee shall have the option of (a) leaving such fixtures or equipment and surrendering them as property to the Lessor or (b) removing such fixtures and equipment and being responsible for restoring the walls, floors, etc. to the same condition as such walls, floors, etc. were prior to the installation of such equipment or fixtures. 17. Lessor agrees to release the Lessee from any financial obligations arising under this agreement during such periods of time that the Civil City of South Bend does not or cannot maintain its financial support of the Lessee at levels at least comparable to the rental charge made by the Lessor under this agreement. The Lessee agrees to program and operate the portion of the South Bend Century Center set forth in this agreement. 18. In the event that a dispute shall arise between Lessors and Lessee concerning the terms of this lease or the tenancy created hereunder, Lessors shall appoint an arbitrator jointly and Lessee shall appoint an arbitrator, which arbitrators shall be empowered to resolve such disputes. I£ said arbitrators fail to resolve such disputes within fourteen (14) days, they .shall agree to appoint a third person to act as arbitrator with them, and the dispute shall be resolved by the concurrence of two (2) of the arbitrators. In the event that any party fails to name an arbitrator as provided for herein, such vacancy in appointment shall be filled by the Judge of the St. Joseph Circuit Court on petition of any interested party. The decision of a majority of the arbitrators shall have the same effect as if made by the concurrence of Lessors and Lessee. 19. The Lessors agree not to place any graphic or sign displays for the facility which pertains to the Art Center without receiving prior agreement from the Lessee. The Lessee recognizes and accepts the fact that certain commitments have already been made by the Lessor as far as naming certain portions of the facility, and will do nothing to prohibit such commitments from being fulfilled. The Lessor agrees not to make any additional commitments as they pertain to the naming of spaces or rooms which are the subject of this Lease Agreement, without receiving prior approval from the Lessee. 20. This Lease contains the entire agreement between the parties and cannot be changed or terminated except by a written instrument subsequently executed by the parties hereto. Lessors and Lessee agree that the covenants and agreements herein contained shall be binding upon, apply and inure to their respective successors and assigns. -7- APPROVED: Peter J. Nemeth, Mayor City of South Bend Date: Roger O. Parent, President South Bend Common Council Date: ATTEST: City Clerk Richard A. Rosenthal, Chairman South Bend Civic Center Board of Managers i Date:�r�' "wt�: Andrew W. Nickle, President The Art Center, Inc. ((u Date: 7z4lr j ,,;/anti HIV 76 Thomas J. Brunner, Jr. City Attorney Robert M. Parker Chief Deputy ����o�urioN�i� CITY of SOUTH BEND PETER J. NEMETH, Mayor ILI 7 a 6 COUNTY -CITY BUILDING SOUTH BEND, INDIANA 46601 /NDIANP South Bend Common Council County -City Complex 227 West Jefferson Blvd.. South Bend, Indiana 46601 Dear Council Members: November 3, 1976 219/284 -9241 The purpose of the attached proAosed ordinance is for the City to adopt and become a party to a lease by which the Art Center will occupy a substantial portion of the Civic Center. The Council has previously passed ordinances adopting a lease with the South Bend Community School Corporation and an agreement with the county Hotel -Motel Tax Board. Following lengthy, negotiations between the Art Center and the Civic Center Board of Managers, this lease was unanimously approved by both boards. The president of the Art Center has stated that he feels that the Art Center's move to Century Center will enable the Art Center to make available to the citizens of the community a truly top - flight program. It is also felt that the presence of the Art Center will insure the success of Century Center. Respectfully submit, d, Edward V. Mikesell Deputy City Attorney EVM:vl att. (famnttlrr Irvart 010 tar Taunton (fonmci[ of t4r Tug of 0OW4 Brnd: Your Committee OF THE WHOLE to whom was referred AN ORDINANCE APPROVING THE FORM AND TERMS OF LEASE AGREEMENT BETWEEN THE CITY OF SOUTH BEND, INDIANA, THESOUTH BEND CIVIC CENTER BOARD OF MANAGERS, AND THE ART CENTER, INC., AN INDIANA NOT —FOR— PROFIT CORPORATION, AND AUTHORIZING THE EXECUTION THERE- OF PERTAINING TO THE SOUTH BEND CIVIC CENTER. Respectfully report that they have examined the matter and that in their opinion THIS ORDINANCE BE RECOMMENDED TO THE COUNCIL FAVORABLE. FRANK HORVATH Chairman ree� •ncsa � •eeuaxwc co.