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HomeMy WebLinkAboutMO #3286MUNICIPAL ORDER NO. 3286 A MUNICIPAL ORDER AUTHORIZING AND DIRECTING THE MAYOR TO EXECUTE A LEASE AGREEMENT BETWEEN THE W. C. YOUNG COMMUNITY CENTER AND THE CITY OF PADUCAH FOR LEASE OF THE W. C. YOUNG COMMUNITY CENTER LOCATED AT 505 SOUTH EIGHTH STREET, PADUCAH, KENTUCKY BE IT ORDERED BY THE CITY OF PADUCAH, KENTUCKY: SECTION 1. That the Mayor is hereby authorized and directed to execute a Lease Agreement between W. C. Young Community Center and the City of Paducah, Kentucky in substantially the form attached hereto and made part hereof (Exhibit A). SECTION 2. This Order shall be in full force and effect from and after the date of its adoption. O1 Bray, Mayor ATTEST: i, �L'indsay Paric, Clerk Adopted by the Board of Commissioners, July 28, 2026 Recorded by Lindsay Parish, City Clerk, July 28, 2026 \mo\Lease- W. C. Young 2026 EXHIBIT A LEASE AGREEMENT THIS LEASE AGREEMENT made and entered into this day of 12026, by and between CITY OF PADUCAH, KENTUCKY, hereinafter referred to as "LESSOR," and the W. C. YOUNG COMMUNITY CENTER, hereinafter referred to as "LESSEE": WITNESSETH: WHEREAS, Lessor is owner in fee of a tract of real property located at 505 South 8th Street, Paducah, Kentucky, upon which tract is located a building known as the W.C. Young Community Centers; and WHEREAS, it is the desire, intent and plan of Lessee to lease from Lessor said tract of property, together with the building thereon; and WHEREAS, it is now the express intent of the parties hereto to enter into a lease which will set out the terms, conditions and covenants of the parties' contractual relationship as to the aforesaid real property and building. NOW, THEREFORE, for and in consideration of the terms, covenants and conditions herein set forth and contained, Lessor and Lessee contract and agree as follows: ARTICLE I PREMISES - USE 1.1 Leased Premises. Lessor hereby leases, demises and lets unto Lessee and Lessee hereby leases and lets from Lessor a certain parcel and tract of land, together -- with improvements and facilities thereon, lying and being in Paducah, McCracken County, Kentucky, and more particularly located at 505 South 8th Street, Paducah, Kentucky, all of which is hereinafter referred to as the "premises". 1.2 Condition of Premises. Lessee has inspected the premises and found the same to be in good condition and repair. Lessor hereby disclaims any and all warranties of fitness, operable condition and condition of repair. Lessee accepts the premises "AS IS", subject only to the Lessor Improvements to be made pursuant to section 4.5 below. 1.3 Use of Premises. The premises shall be occupied and used by the Lessee only for recreational purposes and uses deemed necessary and desirable in the interests of the general welfare of the public. The premises shall not be used for any other purpose without the prior written consent of Lessor, which consent shall not be unreasonably withheld. Lessee agrees that Lessor may use the premises, at no charge, for meetings and events as coordinated in advance with Lessee. 1.4 Restricted Covenants. Lessee covenants that any, every and all uses of the premises hereunder shall comply with all applicable federal, state and local laws and applicable deed restrictions. - 1.5 Date of Possession. Lessee shall be entitled to possession of the premises on the effective date of this agreement. ARTICLE II LEASE TERM 2.1 Primary Term. The primary term of this Agreement shall be for a period of three (3) years from and after the effective date of this agreement, unless otherwise terminated as provided herein. 2.2 Renewal Term. Provided Lessee is not in default and this Agreement is otherwise in full force and effect, Lessee shall have the option to renew this Agreement upon the terms and conditions as set forth herein for one (1) additional renewal term of two (2) years. Lessee shall exercise its renewal option by delivering to Lessor written notice of its intent to exercise the same at least three (3) months prior to the expiration of the primary term. ARTICLE III RENTALS 3.1 Primary and Renewal Term Rental. Lessee shall pay to Lessor as rental payment an amount equal to One Dollar ($1.00) per year for each year of the primary or any renewal term. Said rentals shall be paid in advance and on each anniversary date of this agreement. Lease payments shall be made to Lessor in care of the Public Works Department, 1120 North 10th Street, Paducah, KY 42001. ARTICLE IV MAINTENANCE, REPAIRS AND IMPROVEMENTS 4.1 Maintenance and Repair. Lessor shall be responsible for maintenance of the roof, outside walls, sidewalks, and other structural parts of the building. Lessor shall also be responsible for major repairs to the heating and air conditioning system, electrical system, and plumbing. The term "major repairs" shall be defined as repairs costing over $1,500.00. Any dispute regarding a "major repair" which cannot be resolved by the administrative staff of the Lessee and Lessor will be decided unilaterally by the Paducah City Commission. Lessor shall not be required to make any repairs to the roof, outside walls, heating and air conditioning system, electrical system, or plumbing or the structural components thereof when such repairs are necessitated by the fault, act, or negligence of Lessee or any of its employees, agents, invitees, or customers. Lessee shall be responsible for all other items of maintenance. Lessee shall keep the leased premises in good condition and repair, including, but not limited to, wall and floor coverings, heating and air conditioning systems, electric lights, light fixtures, wiring, plumbing, doors and windows, paint, and inside maintenance. Lessee shall also be responsible for landscaping, and shall keep the entire leased premises clear, mowed, orderly and free of debris and waste materials. Lessee shall remove from the premises as soon as reasonably possible all garbage, trash, and any and all other waste materials and shall at all times keep the leased premises in a clean and sanitary condition. All repairs, replacements, maintenance and restoration required of Lessee shall be promptly commenced and diligently prosecuted to completion. All repairs and replacements shall be made in a good and workmanlike manner and shall use materials at least equal in quality to the replaced materials when new. 4.2 Lessor's Right to Repair. In the event that Lessee fails to promptly effectuate any repair or maintenance which it has assumed herein within a reasonable time from when such need arose, or to timely pay and satisfy any cost or expense relating thereto, Lessor may, at its option, and in addition to any other remedy Lessor may have, effectuate such repair or maintenance, or pay and satisfy the costs and expenses, with all costs of such repair, maintenance or payments made to be the sole responsibility of Lessee. Upon demand, Lessee shall pay promptly to Lessor all costs incurred for such repair, maintenance or payments made for same. 4.3 Inspections. Lessor and Lessee agree that Lessor shall conduct quarterly inspections of the premises for purposes of assessing opportunities for preventative maintenance. Inspections shall be coordinated in advance between Lessor and Lessee. 4.4 Utilities and Services. The premises are presently serviced with all necessary utilities. Lessee shall be responsible for servicing the premises with any other utilities that Lessee may desire. It is expressly understood by and between the parties that Lessee shall be solely and exclusively responsible for and shall assume the payments of all monthly charges for these utilities which are provided to the premises and shall fully indemnify and save Lessor harmless for and against any and all liability for any of such costs or charges. Lessee shall promptly pay all monthly charges as the same become due. 4.5 Lessor Improvements. Lessor intends to make various interior updates to the premises during the term of the lease, including upgrading the bathrooms and kitchen, painting walls, and updating the flooring and ceilings. All costs associated with such improvements shall be borne by Lessor. Lessee agrees to coordinate with Lessor to facilitate such improvements, including providing access to the premises upon Lessor's request and assisting with cleaning out the building in preparation for such renovations. Lessor and Lessee agree to work together and use best efforts to minimize the impact of the renovation project on Lessee's operations. It is anticipated that such improvements shall be completed by June 30, 2027. 4.6 Notice and Submission of Plans for Improvements. Lessee may make, or cause to be made, on the herein leased premises such improvements as may be necessary or appropriate in connection with the carrying on and efficient operation of Lessee's business, subject to the reasonable approval of the Lessor. Prior to the commencement of any construction at or upon the premises, Lessee shall first cause Lessor to be given written notice of the nature and extent of any specific improvements to be undertaken. All construction, alterations or improvements made to the premises shall at once become a part of the premises and become the property of the Lessor. 4.7 Sians. Lessee shall be entitled to erect, maintain and install upon the premises identification and advertising signs appropriate to its business, subject to the reasonable approval of Lessor. 4.8 Lien Claims. Lessee hereby covenants to unconditionally indemnify Lessor against and save it harmless from any and all lien claims of any nature whatsoever arising out of the use and occupancy of the premises or in any manner connected with the construction, installation, erection, maintenance and/or repair of any improvements, facilities and/or equipment effectuated by Lessee or any third persons on or about the premises, and Lessee further agrees that it shall, in the event of any such liens are filed, forthwith effect the removal and/or satisfaction. At the request of Lessor, Lessee shall furnish Lessor with written proof of payment of any item which would or might constitute the basis for such lien on the leased premises if not paid. ARTICLE V INSURANCE AND INDEMNIFICATION 5.1 Insurance. Lessee shall maintain fire and casualty insurance coverage on all improvements located upon the leased premises in an amount which is satisfactory to Lessor, which shall insure the Lessor as a loss payee and named insured. Lessee also shall maintain comprehensive general liability coverage covering the leased premises, under which the Lessor will named as an additional insured, stipulating limits of liability of not less than One Million Dollars ($1,000,000.00) per occurrence and Two Million Dollars ($2,000,000.00) in the aggregate. Lessee shall also provide adequate and sufficient Workers' Compensation coverage at statutory limits. Certificates evidencing the herein referenced insurance coverage which Lessee shall be responsible for shall be furnished to the Lessor annually. Lessor shall receive advance written notice from the insurer prior to any termination of such insurance policies. 5.2 Indemnification. Lessee hereby releases and discharges Lessor from and shall fully protect, indemnify and keep and save Lessor harmless from any and all costs, charges, expenses, penalties and damages imposed for the violation of any law or regulation of the United States, or the Commonwealth of Kentucky, County of McCracken or City of Paducah, incurred by any act or omission of Lessee or Lessee's representatives, assigns, agents, servants, employees, licensees, invitees, and any other person or persons occupying under Lessee; and Lessee shall further protect, fully indemnify and save forever harmless Lessor from any and all liability, costs, damage and expense, incident to injury (including injury resulting in death) of persons or damage to or destruction of property incident to, arising out of or in any way connected with Lessee's (and the others as herein referenced) use and occupancy or right of use and occu- pancy of the premises leased hereby, whether by omission or commission and irrespective of exclusive or nonexclusive rights therein, including but not limited to the operation of Lessee's business, Lessee's construction, erection, installation, existence, repair, maintenance, alteration and/or demolition of any improvements, its facilities and/or equipment or the conduct of any other activities. ARTICLE VI TERMINATION 6.1 Termination. Upon the termination of this Agreement, however such termination may be brought about, whether by expiration of the terms hereof, or by cancellation, or otherwise, Lessee shall quit and surrender said premises to Lessor in good condition and repair. It is the express understanding of the parties hereto that upon termination of this Agreement, all structures, facilities, improvements and nonremovable fixtures brought upon or erected upon the premises by Lessee shall become the property of the Lessor, and that all other property used or brought upon the premises by Lessee shall remain the property of Lessee, subject to, however, any landlord lien of Lessor. 6.2 Events of Default. The following shall be "events of default" under this Agreement, and the terms "event of default" or "default" shall mean whenever they are used in the agreement any one or more of the following events: a. The insolvency, assignment for the benefit of creditors, adjudication as a bankrupt or the appointment of a receiver for substantially all of either Lessee's property and/or Lessee's interest in this Agreement; b. The issuance of execution against either Lessee's interest in this Agreement or any legal process which by operation of law would cause Lessee's interest in this Agreement to pass to any persons other than Lessee; C. The failure or refusal of Lessee to pay or cause to be paid any rental within ten (10) days of when the same becomes due or the failure or refusal of Lessee to timely pay or cause to be paid any insurance premiums, taxes, costs of repairs or maintenance, or any other charges as herein assumed by Lessee; d. In the event Lessee, before the expiration of said term, without the written consent of Lessor, vacates said premises or abandons possession thereof, or uses the same for purposes other than the purposes for which the same are hereby let, or ceases to use said premises for the purposes herein specified; e. Failure by the Lessee to perform any agreement, covenant, condition, obligation and/or undertaking herein contained or to observe or comply with any of the terms, provisions and conditions of this Agreement. Upon termination of this Agreement, either by lapse pursuant to the terms of the same, or in the event of default as defined herein, Lessor may immediately, or at any time thereafter, reenter the premises without notice or demand, and remove all persons and things therefrom with or without legal process and without prejudice to any of Lessor's other legal rights, using such force as may be necessary or proper for the purpose. If upon reentry there remains any abandoned personal property of the Lessee or of any other person upon the leased premises, the Lessor may take possession of such property and sell it at public or private sale with notice to the Lessee, and this right to take and sell shall be a prior lien and claim against the property; or the Lessor may, without obligation to do so, take possession of such property and hold it for the owners thereof or may place the same in a public garage or warehouse, all at the expense and risk of the owners' thereof, and Lessee and the owner shall reimburse the Lessor for any expense incurred by the Lessor in connection with such removal or storage. If the Lessor elects to take possession of the property and sell it, the proceeds of such sale shall be the property of the City. 6.3 Holding Over. If Lessee shall, with the consent of Lessor, hold over after the expiration or sooner termination of any term of this lease, the resulting tenancy shall, unless otherwise mutually agreed, be for an indefinite period of time on a month-to-month basis. During such month-to-month tenancy, Lessee shall pay to Lessor the same rate of rental for the renewal term, and shall be bound by all of the provisions of this lease agreement. Such holding over period may be terminated by either party upon thirty (30) days written notice of intent to so terminate. 6.4 Damage to Premises. In the event that the leased premises shall be totally destroyed by fire or the elements, or from any cause whatsoever, either party may elect within thirty (30) days after such destruction to terminate this lease, and if either party shall so elect, by giving to the other a written notice of termination, both parties shall stand released of and from further liability under the terms hereof. If the leased premises shall thereby only suffer partial destruction to any degree, and Lessee is able to continue on with its operations and Lessee's obligations hereunder shall continue and all terms and provisions of this Agreement shall be in full force and effect. 6.5 Waiver. Waiver by Lessor of any breach or default of this Agreement by Lessee shall not be deemed a waiver of similar or other breaches or defaults, nor shall the failure of Lessor to take any action by reason of any such breach or default deprive Lessor of the right to take action at any time when such breach or default continues. The rights and remedies created by this Agreement shall be cumulative and nonexclusive of those to which Lessor may be entitled at law and equity. Right of exercise of all such rights and remedies is hereby reserved by Lessor. The use and availability of one remedy shall not be taken to exclude or waive the right to use of another. In order to entitle any party to exercise any remedy reserved by it in this Agreement, it shall not be necessary to file any notice other than such notice as herein expressly required. ARTICLE VII CONDEMNATION 7.1 Condemnation. In the event of any governmental condemnation of any part or all of the premises, should the portion of the premises taken in the condemnation substantially and adversely affect Lessee's operations thereon, Lessee may, at his option, terminate this Agreement upon 30 days written notice to Lessor, and thereafter, shall not be further liable for any subsequent rentals. Should the portion of the premises taken in the condemnation action not substantially and adversely affect Lessee's use and occupancy and his business operations, this Agreement shall continue in full force and effect according to the terms and provisions herein. Any compensation paid fm the condemnation shall be deemed the property of Lessor. ARTICLE VIII MISCELLANEOUS 8.1 Notices. All notices to be sent hereunder shall be sent to the following addresses: LESSOR: Attn: City Manager City of Paducah P. O. Box 2267 Paducah, KY 42002-2267 LESSEE: Attn: Ericka Hudson, Board Chair W.C. Young Community Center 505 S. 81h St Paducah, KY 42003 8.2. Inspection of the Premises. Lessor, or its appointed employees oT agents, shall have the right to come upon the premises upon reasonable notice and at reasonable times to examine and inspect the premises for purposes of insuring Lessee's compliance with the terms and provisions of this Agreement. 8.3 Taxes. Lessee shall be responsible for and shall promptly pay all state and local real ad valorem property taxes becoming due and payable against the leased premises, or the improvements and facilities erected or installed upon said leased premises and all other taxes which may be due and owing arising from the premises, the operations conducted on the premises, or otherwise. 8.4 Compliance with Laws. The Lessee shall at all times fully and promptly comply with all laws, ordinances and regulations and every lawful authority having jurisdiction of the premises, and as such shall relate to the cleanliness and use of the premises in the character and manner or operation of the business conducted on the premises. 8.5 Quiet Possession. Lessor covenants that during the entire term of this Agreement and for so long as Lessee shall make timely payments of rentals due hereunder and shall perform all covenants on its part to be performed, Lessee shall and may peacefully and quietly have, hold and enjoy the premises. 8.6 Entire Agreement. This Agreement embodies the entire agreement between the parties with respect to the leasing and use of the premises and option to purchase. There are no representations, terms, conditions, covenants or agreements between the parties relating thereto which are not contained herein. This Agreement shall completely and fully supersede all other prior agreements, both written and oral, between the parties pertaining to the leasing of the premises. 8.7 Captions. The article and paragraph headings and captions contained hereunder are included for convenience only and shall not be considered a part hereof or effect in any manner the construction or interpretation of this Agreement. 8.8 Severability. In the event any provisions of this Agreement shall be deemed null and void or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any of the remaining provisions hereof. 8.9 Assignment. This Agreement may not be assigned by the Lessee without the express prior written consent of Lessor. 8.10 Successors and Assigns. The covenants, terms, and conditions and obligations set forth and contained in this Agreement shall be binding upon and inure to the benefit of the Lessor and the Lessee and their respective heirs, successors and assigns. 8.11 Effective Date. The effective date of this Agreement shall be on the date first above written. WITNESS signatures of the parties as of the year and date first above written. LESSOR: CITY OF PADUCAH, KENTUCKY CENTER By George Bray, Mayor LESSEE: W.C. YOUNG COMMUNITY By Ericka Hudson, Board Chair STATE OF KENTUCKY ) COUNTY OF McCRACKEN ) The foregoing instrument was acknowledged before me this _ day of by George Bray, Mayor of the City of Paducah, on behalf of said city, Lessor. My commission expires Notary Public, State at Large STATE OF KENTUCKY ) COUNTY OF McCRACKEN ) 2026, The foregoing instrument was acknowledged before me this _ day of , 2026, by Ericka Hudson, Board Chair of the W.C. Young Community Center, on behalf of said entity, Lessee. My commission expires Notary Public, State at Large