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HomeMy WebLinkAboutResolution 2015-016 Approving lease agreement with Pacheco Farm ManagementMARANA RESOLUTION NO. 2015-016 RELATING- TO REAL PROPERTY; APPROVING- AND AUTHORIZING THE MAYOR TO EXECUTE THE TOWN OF MARANA LEASE AGREEMENT WITH PACHECO FARM MANAGEMENT AND CONSULTING CO., FOR THE LEASE OF APPROXIMATELY 45.82 ACRES OF TOWN -OWNED PROPERTY ABUTTING THE EAST BOUNDARY OF THE MARANA WASTEWATER RECLAMATION FACILITY WHEREAS the Town of Marana acquired land within the 1000-foot setback area surrounding the Marana Wastewater Reclamation Facility as part of the wastewater settlement with Pima County; and WHEREAS Pinta County was leasing a portion of the property to Pacheco Farm Management and Consulting Co., when the wastewater settlement occurred; and WHEREAS the wastewater settlement included Pima County's assignment to the Town of the portion of the Pacheco Farm Management and Consulting Co, lease located within the I 000-foot setback area; and WHEREAS the Town terminated a portion of the lease to accommodate the installation of a monitoring well in connection with the Town's anticipated construction of a constructed recharge facility on a portion of the property; and WHEREAS the lease for the remainder of the property not affected by the partial termination expires on March 2, 20 15, and the parties now desire to enter into a new one -year lease; and WHEREAS the Mayor and Council of the "Town of Marana find that the best interests of Marana and its citizens are served by entering into the proposed lease. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, that the Town of Marana Lease Agreement with Pacheco Farm Management and Consulting Co. attached to this resolution as Exhibit A, for the lease of approximately 45.82 acres of Town -owned property abutting the east boundary of the Marana Wastewater Reclamation Facility, is hereby approved, and the Mayor is authorized to execute it for and on behalf of the Town of Marana. IT IS FURTHER RESOLVED that the Town Manager and staff are hereby directed and authorized to undertake all other and further tasks required or beneficial to carry out the ter obligations, conditions and objectives of the lease. � 00040848, DOCX 12 ) RCSOILItioai No. 2[ 15 -01 G 1 1/30/2015 2:44 PM FJC PASSED AND ADOPTED b the Ma and Council of the Town of Marana, Arizona, this 1. 7th da of Februar 201 Ma Ed onea ATTEST: ocel C ronson, Town Clerk 9 I W N N � 00040848. DOCX 1 2 ) Resolution No. 2015-016 -2- 1130/2015 2:44 I'M FJC WHEN RECORDED, REI URN TO: Pick Up —Town Clerk TOWN OF MARANA fbo Frank Cassidy, Town Attorney 'T r oWN of MARANA LEASE AGREEMENT (PACHECO FARM MANAGEMENT AND CONSULTING CO.) This Lease Agreement (this "Lease "} is made and entered into by and between the TOWN OF MARANA, an Arizona municipal corporation ("Landlord"') and PACHECO FARM MANAGEMENT AND CONSULTING Co., an Arizona general partnership ( "Tenant "). Landlord and Tenant are sometimes collectively referred to as the "Parties," either of which is sometimes individually referred to as a "Party." 1. Premises. Landlord is the owner of the property located in Pima County, Arizona, as depicted in Exhibit "A" attached (the "Premises "). 2. Existing; Lease. The Parties have an existing lease for the Premises that expires on March 2, 2015. The purpose of this Lease is to establish a new lease between the Parties, beginning upon the expiration of the existing lease. Nothing in this Lease modifies or affects the existing lease or the rights of the Parties under it. 3. Lease. Landlord hereby leases the Premises to Tenant, and Tenant hereby leases the Premises from Landlord, under the terms and conditions and for the purposes set forth in this Lease. 4. Terre. The term of this Lease shall be for one year commencing March 3, 2015, unless terminated pursuant to Paragraph 23 of this Lease. This Lease shall be reviewed 90 days before the end of the term, at which time the Parties will agree whether to terminate or continue this Lease for an additional one -year term. Renewal shall be by written amendment, signed by both Parties. 5. Rent. Tenant shall pay Landlord rent of $ per year. Tenant's first rent payment is due on March 3, 2015. If this lease is extended, each subsequent year's rent is due annually on March 3 during any extension of this Lease. If rent is not paid within 15 days of the due date, a $250 late charge shall be assessed and due and payable with rent. 6. Tenant's Use of the Premises. Tenant may use and occupy the Premises for agricultural use (the "'Permitted Activities "). (A) Ex ease of Tenant. Tenant shall conduct all of its operations at the Premises at its own expense and without contribution from Landlord.. Tenant shall not (00040830.DOC / 2) - 1 -- 1/30/201.5 8:54 AM FIC suggest, state or imply that Landlord will participate, guarantee or otherwise assist in any financial obligation undertaken by Tenant with respect to its operations on the Premises. (B) Hours of operation Tenant may conduct Permitted Activities on the Premises 24 hours a day. (C) Compliance with Laws Tenant shall comply with all applicable federal, state, x and local laws, statutes, ordinances, rules, regulations, standards, policies, and executive orders with respect to its operations on the Premises. (D) Alcohol Prohibited Possession, consumption, or sale of alcoholic beverages shall not be permitted on the Premises. No exceptions shall be pernzi tied. 7. Improvements to Premises. All improvements, made to the Premises by Tenant must receive the prior written approval of Landlord, to whom Tenant shall submit detailed plans and specifications. Improvements shall be constructed in a good and workmanlike manner using new materials, in compliance with the approved plans and specifications and with all applicable laws, rules, and regulations, including all applicable building, electrical and other codes. S. Concessions. with the exception of one or more vending machines, Tenant may not operate concessions or food services on the Premises. 9. Condition of Premises/Maintenance & Repairs. Tenant accepts the Premises in an "as is" condition.. Tenant shall maintain the Premises at all times hereunder in a good, clean, safe and sanitary condition, at its sole cost and expense, including making any necessary repairs or replacements of improvements thereon, and shall leave the Premises, upon the expiration or earlier termination of this Lease, in a condition at least as good as upon the Effective Date, reasonable wear and tear excepted. 10. Utilities. Tenant shall pay the cost of all utilities used in connection with its operation of the Premises. 11. Signs. Tenant may affix and maintain upon the Premises such signs relating to the services provided on the Premises as Tenant deems appropriate, provided., however, if such signs are visible outside of the Premises, such signs must have first received the written approval of Landlord as to type, size, color, location, copy nature and display qualities, provided further, however, that all signs utilized by Tenant on or about the Premises, whether visible outside the Premises or not, shall at all times comply with the Marana Land Development Code, and shall be installed and maintained at Tenant's sole cost. 12. Environmental. Tenant shall not cause or permit any hazardous or toxic substance or material to be brought upon, kept, or used in or about the Premises by Tenant, its agents, employees, contractors or invitees. Tenant shall fully comply with all environmental rules and regulations with respect to its operations on the Premises and shall remediate and clean up any contamination of the Premises occurring during the term of this Lease. 100040830.DOC / 2) -2- 1/30/2015 8:54 AM rJC 13. Entry by Landlord. Landlord may enter the Premises at reasonable times to inspect the Premises and Tenant's operations on the Premises. 14. Security. Tenant shall be responsible for the securing the Premises and preventing any unlawful or unauthorized use of the Premises. when the Premises are not open to the Public, they shall be secured in order to prevent unsupervised use or entry into the Premises. Tenant shall contact law enforcement authorities when it appears necessary to protect the Premises and any persons or property on the Premises, and it shall assist in any resulting prosecution. 15. Insurance. (AA) Types of Insurance Required. Tenant shall procure, prior to the Effective Date, and maintain throughout the term of this Lease, the following insurance from an insurance company or companies approved by Landlord: (1) Commercial General Liability insurance with coverage at least as broad as ISO form. CG 00 01 in an amount not less than $1,000,000, covering the Premises, endorsed to include the Town of Marana as an additional insured with coverage at least as broad as ISO form CG 2010. (2) Automobile liability insurance covering all vehicles used on the Premises, with limits not less than $1,000,000 combined single limit. (B) Certificates Tenant shall provide Landlord with copies of certificates of insurance showing the current status of all insurance policies and with copies of all additional insured endorsements. In addition, Tenant shall provide full, certified copies of all required insurance policies when requested by Landlord in writing. Tenant shall give Landlord written notice of cancellation, non- renewal, or material change of any insurance policy not later than five calendar days after Tenant becomes aware of same. Landlord shall be an "additional insured" on all liability insurance policies. (C) Changes to Insurance Requirements, Landlord may review the coverage, form, and amount of insurance required under this Lease at any tinge. Landlord shall notify Tenant in writing of any changes to the aforesaid insurance requirements, and Tenant shall have 60 days to comply with the requirements as changed. 16. Indemnification. To the fullest extent permitted by law, Tenant shall defend, indemnify, and hold harmless Landlord, its officers, agents, and employees, from and against any and all claims, liabilities, losses, damage, cost and expense, including ,but not limited to reasonable attorneys' fees and/or litigation expenses, arising out of or resulting from the conduct or management of the Premises, or any accident, injury, damage, or violation of law whatsoever occurring in or at the Premises allegedly caused in whole or in part by any act or omission of Tenant or anyone directly or indirectly employed by it, its agents, representatives, contractors, subcontractors, licensees, or anyone for whose acts it may be liable, regardless of whether it is caused in part by the negligent act or omission of Landlord or any of its officers, agents, or employees. To the {00040830. DOC / 21 -.3- 1 / 30/ 2015 8:54 AM .TJC fullest extent permitted by law, Tenant shall also indemnify Landlord against any claim, liability, damage, cost, or expense arising out of the disposal, or release of any hazardous substance, hazardous waste, hazardous materials, or petroleum products or by products on, from or under the Premises during the term of this Lease. 17. Tenant not an Agent of Landlord. Tenant is not an agent of Landlord for any purpose under this Lease or otherwise. Tenant shall control activities on the Premises, and Landlord shall not control those activities. Tenant's employees and servants shall not be under the control of Landlord. 18. Default/Termination. (A) Immediate Termination of Lease. This Lease may be terminated immediately by Landlord for any of the following: (i) Tenant at any time is without the required insurance; (ii) Tenant violates any law, or permits any unlawful activities to be carried out on the Premises, (iii) Tenant takes or fails to take any action and this action or non - action, in Landlord's sole judgment, causes or exacerbates a threat to the health or safety of the general public or the users of the facility; (iv) Tenant creates or permits any waste or nuisance on the Premises; (v) Tenant permits the consumption of alcohol on the Premises. (B) Other Defaults. For any other default, the non- breaching Party may terminate this Lease only if the breaching party fails to cure the default within 30 days of receiving written notice from the non - breaching Party describing the default, except that a Party may terminate this Lease if the other Party is guilty of four such defaults in a 12 -month period, even if each default was cured in a timely manner. Either Party may pursue any other remedies provided by law for the breach of this Lease. No right or remedy conferred or reserved is intended to be exclusive of any other right or remedy, and each shall be cumulative and in addition to any other right or remedy conferred or reserved in this Lease. 19. Notices. Any notices required under this Lease shall be delivered personally or by certified mail, directed as follows: If to Tenant: PACHECo FARM MANAGEMENT AND CONSULTING Co. Attn: Pat Pacheco P.C. Box 275 Marana, AZ 85653 If to Landlord: Marana Town Clerk 11555 West Civic Center Drive Marana, AZ 55653 100040830.DDC / 2} -4- 1/30/205 5:54 AM FJC With a copy to: Marana Legal Department 11555 West Civic Center Drive Marana, Az 55653 20. cancellation for conflict of Interest. This Lease may be cancelled under certain circumstances for conflict of interest pursuant to A.R.S. § 35- 511. 21. Non- Discrimination. Tenant shall comply with applicable state and federal rules concerning equal employment opportunity and non - discrimination. Tenant shall further comply with the Americans with Disabilities Act, to the extent applicable to Tenant's operation and the Premises. 22. Choice of Law. The laws of the State of Arizona shall apply to any action relating to this Lease and any court action shall be brought in a court in Pima County, Arizona. 23. Termination. Landlord may terminate this Lease without cause with 30 days written notice. Tenant may terminate this Lease for any reason with a 30 -day written notice to Landlord. Upon the termination or expiration of this Lease, or any extension of it, Tenant shall leave the Premises in a good and clean condition. Tenant shall remove any Tenant -built or installed improvements prior to vacating the Premises if requested by Landlord or unless requested to be left in place by Landlord. 24. Personal Property. Tenant shall maintain a current inventory of all items of personal property owned by Tenant and placed or kept on the Premises by Tenant. Any items of personal property left on the Premises upon expiration or earlier termination of this Lease shall become the property of Landlord and may be sold or otherwise disposed of by Landlord without liability to Tenant. 25. Liens. Tenant shall timely pay all contractors, subcontractors, mechanics, laborers, or materialmen providing materials or services with respect to the Premises, and shall not permit any lien to attach to the Premises or any interest in the Premises, and shall indemnify and defend Landlord against all legal costs and charges resulting from any such lien. 26. Non- Waiver. The failure of either Party to insist in any one or more instances upon the full and complete performance of any of the terms and provisions of this Lease to be performed by the other Party, or to take any action permitted as a result thereof, shall not be construed as a waiver or relinquishment of the right to insist upon full and complete performance of the same or my other covenant or condition either in the past or in the future. The acceptance by either Party of sums less than may be due and owing to it at my time shall not be construed as an accord and satisfaction. 27. Assignment/Subletting. Any attempted assignment of this Lease by either Party without prior written consent from. the other Party shall be void. This Lease shall be binding on my and all successors and assigns of Landlord and Tenant. Tenant shall not sublet any portion of the Premises without the prior written consent of Landlord, which consent may be given conditionally. {00040830 -F)OC / 2} -5- 1/ 30/ 2015 8:54 AM FJC 28. Entire A This Lease shall constitute the entire contract between Landlord and Tenant with respect to the Premises and no modification of this Lease shall be bindin unless in writin and si b both Parties. IN WITNESS WHEREOF, the Parties have executed this Lease as of the last date set forth below their respective si "LANDLORD": "'TENANT"-. TOWN OF MARANA, an Arizona municipal PACHEco FARM MANAGEMENT AND corporation CONSULTING Co., an Arizona g eneral partnership B Ed Honea, Ma Pat Pacheco Date-, Date: ATTEST: Jocel C. Bronson, Town Clerk APPROVES AS To FORM: F nk Ca d Town At rne tate of Ca ss Count of Pima ) The fore instrument was acknowled before me on b Pat Pacheco, dul authorized partner of PACHEco FARM CONSULTING Co., an Arizona g eneral partnership, on its behalf. (Seal) MANAGEMENT AND Notar Public (00040830.DOC / 2) - 6 - 1/30/2015 8:54 AM FJC Exhibit A Town of Marana Parcel 208- 09 -010K 49.26 acres total; leased "Premises" 45.82 acres Legal Description of APIA 208- 09 -01OK: The west 1000' of the south 2146' of the southwest quarter of Section 13, Township 11 South, Range 10 East, containing approximately 49.26 acres Legal description of Leased "Premises ": The west 1000' of the north 1996' of the south 2146' of the southwest quarter of Section 13, Township 11 South, Range 10 East, containing approximately 45.82 acres {Exhibit A Draft for 208- 09- 010K.docx /I