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HomeMy WebLinkAbout2019-06-8580ORDINANCE NO. 2019-6-8580 AN ORDINANCE AUTHORIZING THE SUBLEASE OF CITY OF PADUCAH PROPERTY BETWEEN SEAMEN'S CHURCH INSTITUTE OF NEW YORK AND NEW JERSEY, INC. AND THE WATERWAYS JOURNAL WHEREAS, on October 11, 1996, the Board of Commissioners of the City of Paducah, Kentucky entered into a certain Lease Agreement with Seamen's Church Institute of New York and New Jersey, Inc., ("SCI") which lease was extended by Lease Extension Agreement dated September 19, 2011, regarding real property located at the northwest intersection of Kentucky Avenue and South Water Street; and WHEREAS, said real property is the site on which SCI operates its Center for Maritime Education, a maritime training school and simulator facility; and WHEREAS, The Waterways Journal, ("WJ") desires to acquire office space in a portion of the real property currently leased by SCI and not currently being used for operation of its Center for Maritime Education; and WHEREAS, this Sublease between SCI and WJ will enable SCI to more fully perform its purposes and mission; and WHEREAS, the Board of Commissioners of the City of Paducah wishes to approve the Sublease between SCI and WJ and has determined that the Sublease is in the best interest of the City. NOW, THEREFORE, BE IT ORDERED BY THE BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY: Section 1. Recitals and Authorizations. The City hereby approves the Sublease among SCI and WJ (the "Sublease") in substantially the form attached hereto as Exhibit A and made a part hereof. It is further determined that it is necessary and desirable and in the best interest of the City to consent to the Sublease for the purposes therein specified, and the execution and delivery of the Sublease is hereby authorized and approved. The Mayor of the City is hereby authorized to execute the Sublease. Section 2. Severability. If any section, paragraph or provision of this Ordinance shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any of the remaining provisions of this Ordinance. Section 3. Compliance with Open Meetings Laws. The City Commission hereby finds and determines that all formal actions relative to the adoption of this Ordinance were taken in an open meeting of the City Commission, and that all deliberations of this City Commission and of its committees, if any, which resulted in formal action, were in meetings open to the public, in full compliance with applicable legal requirements. Section 4. Conflicts. All ordinances, resolutions, orders or parts thereof in conflict with the provisions of this Order are, to the extent of such conflict, hereby repealed and the provisions of this Order shall prevail and be given effect. Section 5. Effective Date. This ordinance shall be read on two separate days and will become effective upon summary publication pursuant to KRS Chapter 424. C�2� Brandi Harless, Ma or ATTEST: J� �ndsay Parish, City C{ k ' Introduced by the Board of Commissioners, June 11, 2019 Adopted by the Board of Commissioners, June 25, 2019 Recorded by Lindsay Parish, City Clerk, June 25, 2019 Published by The Paducah Sun, July 2, 2019 \ord\lease-sublease-seamen's church & Waterways Journal EXHIBIT A ----- SUBLEASE THIS SUBLEASE made and entered into effective on the 1st day of July, 2019, by and between SEAMEN'S CHURCH INSTITUTE OF NEW YORK AND NEW JERSEY, INC., of 50 Broadway, New York City, NY 10004-1607 (hereinafter referred to as "SCI"), and THE WATERWAYS JOURNAL, of 319 N. 4' Street, Suite 6500, St. Louis, MO 63102 (hereinafter referred to as "WJ"); WITNESSETH: WHEREAS, SCI presently occupies certain real property located at the northwest intersection of Kentucky Avenue and South Water Street in Paducah, Kentucky, under a Lease Agreement with the City of Paducah (hereinafter referred to as the "City"), dated October 11, 1996, and a Lease Extension Agreement dated September 19, 2011; and WHEREAS, said real property is the site on which SCI operates its Center for Maritime Education, a maritime training school and simulator facility; and WHEREAS, WJ desires to acquire and share office space in a portion of the structure not used by SCI for operation of its Center for Maritime Education; and WHEREAS, this Sublease between SCI and WJ will enable SCI to more fully perform its purposes and mission. NOW, THEREFORE, for and in consideration of the terms, covenants and conditions set forth herein, SCI and WJ do hereby agree as follows: 1. Demised Premises; Common Areas. SCI does hereby demise and sublet unto WJ the office and work spaces in the building located at 123 Water Street, Paducah, Kentucky, as shown on Exhibit A attached hereto (hereinafter referred to as the "Demised Premises"), which is part of a group of office spaces that will be shared with American Bureau of Shipping. Spaces designated "WJ" shall be for the primary use of WJ; spaces designated "ABS" shall be for the primary use of American Bureau of Shipping; space designated "SCI" shall be retained by SCI for its primary use; and spaces designated "Shared" shall be shared use spaces between WJ and ABS on a first come, first served basis. WJ shall have access to the Demised Premises through the Main Entrance and Grand Lobby shown on Exhibit A. WJ will have the non- exclusive right, together with the other occupants and users of the premises, to use the parking areas, driveways, sidewalks, landscaped areas, shared entry lobbies and corridors, shared restrooms, and such other areas (outside of the Demised Premises) that SCI or the City may designate from time to time as common areas (hereinafter referred to as the "Common Areas"), subject to all of the terms and conditions of this Sublease. 2. Term. The term of this Sublease shall be for two (2) years and three (3) months beginning on July 1, 2019 and ending on September 30, 2021 (herein "Term"). This Sublease may be renewed by mutual agreement provided SCI's lease with the City of Paducah is extended. 3. Rent. WJ shall pay to SCI rent for the Demised Premises in the sum of Two Thousand Five Hundred and No/100 Dollars ($2,250.00) per month (in advance) with the first payment due on or before July 1, 2019, and each payment thereafter continuing to be due and payable on the same date of each month throughout the Term. 4. Remodeling and Improvements. Any remodeling and improvements made by WJ with respect to the Demised Premises shall be at the sole cost and expense of WJ and shall become the sole property of SCI at the termination of the Sublease. WJ shall be responsible, at its sole cost and expense, to ensure that any remodeling or improvements made by it with respect to the Demised Premises meets all applicable state or city fire, electrical or other codes. During the Term, WJ shall not cause or permit any construction or mechanic's liens to be placed against the Demised Premises by any third party, and in the event that any such construction or mechanic's liens are placed against the Demised Premises, WJ shall be liable for any such liens 2 and shall indemnify and hold SCI harmless from any financial responsibility upon the amounts claimed in said liens. All remodeling or improvements that WJ proposes to make to the Demised Premises shall be subject to the prior written consent of SCI and the City, which shall not be unreasonably withheld, conditioned or delayed. 5. Utilities. SCI shall be solely and exclusively responsible for all monthly charges for electrical, gas, water, telephone, internet and CATV service to the Demised Premises. SCI shall also be responsible for all charges for weekly cleaning of the Demised Premises. 6. Use of the Premises. WJ shall use the Demised Premises for the operation of its news journal reporting on the towing and barge industry on the inland waterways of the United States. 7. Use of Conference Center. During the Term, SCI will allow WJ to use its conference center on a space available basis for as many as 50 participants at the rate of $500 per day between 8:00 a.m. and 4:00 p.m. 8. Vacation of the Premises. WJ will pay the rent at the time and in the manner aforesaid, and at the expiration of the Term will peaceably yield to SCI the Demised Premises in as good order and repair as when delivered to it, except for damage by fire, casualty, war, insurrection, riot or public disorder, or act upon the part of any government authority, or ordinary wear and tear. 9. Use and Occupancy. WJ shall commit no waste or damage on or to the Demised Premises; the Demised Premises shall be used for the purposes hereinabove stated; the Demised Premises shall not be used for any unlawful purpose and no violation of law or ordinance shall be committed thereon; and nothing shall be done or suffered, or any substance kept on the Demised Premises, which will create a nuisance or operate to increase the fire hazard or to cause the insurance rates thereon to be increased. WJ will share with ABS the responsibility to secure the Demised Premises at the end of each work day. 3 10. Assignments and Subletting. WJ shall not assign or transfer this Sublease or any interest therein, nor sublet any portion of the Demised Premises without the prior written consent of SCI and the City, which shall not be unreasonably withheld, conditioned or delayed. 11. Abandonment. If WJ shall abandon or vacate the Demised Premises before the end of the Term, or any other event happens entitling SCI to lawfully take possession thereof, SCI may take possession of the Demised Premises and relet the same without such action being deemed an acceptance of a surrender of this Sublease, or in any way terminating WJ's liability hereunder, and WJ shall remain liable to pay the monthly rent, plus the cost of any expenses incident to SCI's repossession and reletting. 12. Fire and Unsafe Building. If the Demised Premises shall be so damaged by fire or other casualty as to be rendered untenantable, the rent shall be forthwith abated and SCI may, at its option, declare this Sublease terminated, or it may, within thirty (30) days from the date of such fire or other casualty, notify WJ that SCI will repair or reconstruct the Demised Premises; and in such event, WJ shall resume its liability for rent from the time such repair or reconstruction is completed. 13. Transfer by Operation of Law. If, by reason of any act or omission on the part of WJ, the Demised Premises or any part thereof come into possession of any receiver, assignee, trustee in bankruptcy, sheriff or other officer, by and through any court process, or by operation of law, SCI may, at its option, terminate this Sublease at any time thereafter by notice to WJ and may accept rent from such receiver, trustee, assignee, or officer, without affecting or impairing their right to so terminate this Sublease at any time thereafter or impairing any other right of SCI under this Sublease. 14. Rights on Default. Should WJ fail to pay the rent by the first day of any month in which the rent is due, SCI shall give WJ written notice thereof, and if WJ does not pay the rent within ten (10) days of WJ's receipt of such notice, SCI shall have the option at any time H thereafter to declare WJ in default and to declare immediately due and payable all the rent then due and thereafter to become due during the unexpired Term. The failure of SCI to exercise any of such options at the time of the default shall not operate as a forfeiture or waiver thereof, it being the intent of the parties that any of such options may be exercised at the election of SCI once the rent accrues, irrespective of the passage of time from and after the accrual of the rent. Should WJ fail to pay the rent within the 10-day cure period as hereinbefore stated, SCI shall have the option to enter and take possession of the premises and no notice to quit or demand for the premises shall be necessary to recover possession of the same. This option is in addition to and cumulative with SCI's option to declare the Sublease in default and the entire unpaid rent required under this Sublease to be immediately due and payable. In the event WJ violates any of the covenants or provisions of this Sublease other than the payment of rent, the violation shall be corrected within thirty (30) days of WJ's receipt of notice of such violation from SCI. If the violation is not substantially corrected, or WJ is not proceeding diligently to correct the violation within 30 days of notice, SCI shall have the option of entering and taking possession of the Demised Premises without further notice to or demand upon WJ; and SCI may declare the entire balance of the rent required under this Sublease to be immediately due and payable. Upon any default by WJ, nothing in this paragraph 14 shall be deemed to require SCI to relet the Demised Premises and mitigate SCI's damages, and the entire unpaid rent under this Sublease shall be immediately due and payable by WJ to SCI, and SCI may seek any other remedies available to SCI under applicable law. 15. WJ's Liability. WJ shall indemnify and save SCI harmless from all loss, cost and expense arising out of or resulting from injury to any person or property, or any other claims, demands, actions or causes of action, in each case arising out of or resulting from WJ's use or occupancy of the Demised Premises or the Common Areas during the Term, except to the extent 5 caused by the negligence or willful misconduct of SCI's employees, agents or contractors. Likewise, WJ shall indemnify and save the City harmless from all loss, cost and expense arising out of or resulting from injury to any person or property, or any other claims, demands, actions or causes of action, in each case arising out of or resulting from WJ's use or occupancy of the Demised Premises or the Common Areas during the Term, except to the extent caused by the negligence or willful misconduct of City's employees, agents or contractors. WJ shall carry comprehensive general liability insurance covering its use of the Demised Premises and the Common Areas and for property damage liability with limits of liability of not less than $1,000,000 per person and not less than $500,000 for property damage. SCI and the City will be additional insureds in said liability policy, and WJ shall have its liability insurance carrier issue a certificate of insurance to SCI and the City. 16. Quiet Possession. So long as WJ pays its rent and all other charges herein provided, and observes and keeps the covenants, agreements and conditions of this Sublease on its part to be kept, WJ shall lawfully and quietly hold, occupy and enjoy the Demised Premises during the Term without interference by SCI, except as may be reasonably necessary for SCI to enforce any of its rights under this Sublease or the Sublease with ABS. 17. Maintenance and Repairs. WJ, at WJ's sole cost and expense, shall keep and maintain the Demised Premises in good condition and repair, ordinary wear and tear excepted, which obligations of WJ shall include the maintenance, repair and replacement of all interior surfaces of exterior walls and demising walls; interior walls, moldings, partitions and ceilings; carpeting; non-structural interior components; interior windows, plate glass and doors; kitchen or break -room fixtures, appliances and equipment; and WJ's personal property. SCI shall keep and maintain, or cause the City to keep and maintain, as provided in the Lease Agreement between SCI and City the following portions of the building in which the Demised Premises are located (hereinafter referred to as the "Building") in good condition and C.1 repair, ordinary wear and tear excepted: exterior surfaces of the exterior walls and roof of the Building; structural integrity of the footings, foundation, slabs, floors, columns, exterior walls, roof and other structural elements of the Building; exterior doors, windows and plate glass of the Building; standard electrical, lighting, mechanical, plumbing, heating and air conditioning systems, facilities, fixtures and components serving the Demised Premises and the Building; standard light bulbs, tubes, ballasts and starters; demising walls installed by SCI or the City inside the Building; and the Common Areas. 18. Insurance on Contents. WJ shall carry, at WJ's expense, casualty insurance covering all risks of loss to its personal property, furniture, equipment, improvements, and other insurable personal property in amounts not less than the replacement cost of such property. Neither SCI nor the City shall have any liability for damage to WJ's personal property, furniture, equipment, or improvements, except to the extent caused by the negligence or willful misconduct of SCI or the City or their employees, contractors or agents. 19. Taxes. WJ shall be responsible for any tangible or intangible personal property taxes on WJ's assets that are located on the Demised Premises. 20. Lease Acceptance and Attornment. WJ represents and warrants that it has read the original Lease Agreement dated October 11, 1996 and Lease Extension Agreement dated September 19, 2011 by and between the City and SCI, and WJ accepts those terms, covenants, provisions, and conditions of said Lease as would be applicable to its occupancy as a Sublessee, including all default and term provisions, except to the extent modified by this Sublease. Further, WJ agrees to attorn to City as its Lessor in the event SCI's lease rights shall terminate. 21. Holdover. If WJ shall, with the consent of SCI, holdover after the expiration or sooner termination of this Sublease, 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, WJ shall pay to SCI the rental agreed upon, and shall continue to be bound by all 7 of the provisions of this Sublease. Such holding over period may be terminated by either party upon 30 days written notice of intent to terminate. 22. Notices. Any notice, demand or communication, whether intended for SCI or WJ, shall be in writing, and may be served or delivered in person, or by prepaid U.S. Certified Mail, fax or e-mail to the address of the applicable party as listed on this Sublease. These addresses are as follows: SCI - Seamen's Church Institute of New York and New Jersey, Inc. 50 Broadway New York, NY 10004-1607 Fax: (212) 349-8342 Email: drider ,seamenschurch.org WJ - Nelson Spencer, Jr., Publisher 319 N. 41" Street, Suite 650 St. Louis, MO 63102 Fax:314-241-4207 Email: Spence@wjinc.net 23. Waiver. No waiver by SCI of any breach of the terms and conditions hereof by WJ shall operate or shall be construed to affect any other breach of such terms and conditions. No delay or omission on the part of SCI to exercise any right or power accorded to it under the terms hereof shall impair any such right or power or shall be construed to be a waiver of its privileges to exercise any such right or power, and any such right or power may be exercised from time to time as often as it may be deemed expedient. 24. Entire Agreement. Any prior agreements between the parties are deemed terminated and superseded by this Sublease. This Sublease contains all the terms and conditions and understandings between the parties. None of the provisions of this Sublease may be changed, modified or waived except in writing, properly executed by both parties. 25. Applicable Law. This Agreement shall be governed by and construed in accordance with the internal laws of the Commonwealth of Kentucky and not the law of F11 conflicts, and jurisdiction and venue regarding any disputes related to this Agreement shall be in the state or federal courts located in McCracken County, Kentucky. 26. Bindine Effect. This Sublease shall be binding upon and shall inure to the benefit of the parties, their heirs, successors, and assigns. 27. Condition Precedent. This Sublease is subject to the condition precedent that the City of Paducah must approve this Sublease, and it shall be null and void in the absence of such approval. IN WITNESS WHEREOF, the parties hereto have executed this Sublease on the day and year first above written. SCI: SEAMEN'S CHURCH INSTITUTE OF NEW YORK AND NEW JERSEY, INC. REV. DAVID RIDER, President WJ: THE WATERWAYS JOURNAL IM STATE OF NEW YORK ) ss. COUNTY OF NEW YORK ) NELSON SPENCER, JR. Subscribed, sworn to and acknowledged before me by SEAMEN'S CHURCH INSTITUTE OF NEW YORK AND NEW JERSEY, INC., by and through its duly authorized President, REV. DAVID RIDER, on this the day of 2019. My commission expires: PJ NOTARY PUBLIC STATE OF MISSOURI ) ss. COUNTY OF ST. LOUIS ) Subscribed, sworn to and acknowledged before me by THE WATERWAYS JOURNAL, by and through its duly authorized officer, NELSON SPENCER, JR., on this the day of 2019. My commission expires: NOTARY PUBLIC OWNER CONSENT By signing below, the City of Paducah, as owner and lessor, agrees and consents to the foregoing Sublease according to the terms and conditions contained therein and specifically agrees that WJ's right to use the Demised Premises in accordance with this Sublease shall not be affected by the termination of SCI's lease with the City of Paducah for these premises. I hereby certify that this instrument has been prepared by: Law Offices McMurry & Livingston, PLLC 201 Broadway, P.O. 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