HomeMy WebLinkAbout1991-R-09RESOLUTION NO. 91-R-9
RESOLUTION AUTHORIZING SECOND ADDENDUM TO CERTAIN TERMS OF
A GROUND LEASE BETWEEN THE CITY OF JEFFERSONVILLE,
INDIANA, AND HUGHES GROUP, INC.
WHEREAS, the Common Council of the City of Jeffersonville,
Indiana, approved a certain ground lease with the Hughes Group,
Inc., on behalf of the City of Jeffersonville, Indiana, on
August 19, 1989, which lease was finally and fully executed by
the respective parties on September 22, 1989; and,
WHEREAS, the time constraints of said lease were
predicated upon the issuance of certain permits and approvals
by various governmental agencies specifically including the
Indiana Department of Natural Resources and the United States
Army Corps of Engineers; and,
WHEREAS, applications for said permits and approvals have
been timely filed by the Hughes Group, Inc., but have not been
acted upon by the respective governmental agencies to the
extent that the Hughes Group, Inc., can proceed in good faith
to commit to the twenty-five (25) year primary term under said
lease with the attendant
thereunder; and,
WHEREAS, Section 5.8 of
rights and responsibilities
the subject lease required the
Hughes Group to give any notice of termination of the subject
lease by April 1, 1990, or to waive the right of termination
under Article V of the lease; and
WHEREAS, the Common Council passed Resolution No. 90-R-8
on March 19, 1990, extending the above stated dated to give
notice of termination to April 1, 1991; and,
WHEREAS, the Common Council of the City of Jeffersonville
continues to believe that the improvements to be constructed
pursuant to the provisions of the lease are in the public's
best interest in that the public access areas will be enhanced,
and erosion and public safety concerns will be mitigated; and,
WHEREAS, Hughes Group, Inc. has expressed its continued
interest in developing this project subject to receiving the
requested approvals by various governmental agencies.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of
the
City of
1.
Jeffersonville as follows:
That the City Attorney is hereby authorized to
negotiate an acceptable addendum to the subject lease
by which the Hughes Group, Inc., shall be granted a
period of 120 days after the issuance of required
approvals or permits by the Indiana Department of
Natural Resources, the U. S. Army Corps of Engineers,
or Indiana Department of Environmental Management,
later, in order to obtain all other
approvals, remove all other
and proceed under the
whichever is
governmental
contingencies under the lease,
primary term of the lease.
This addendum shall provide
provide
Section
notice
shall
termination
for payment
the lease.
that on or before the
120th day after the issuance of any necessary
approval or permit from the Indiana Department of
Natural Resources, the U. S· Army Corps of Engineers,
or Indiana Department of Environmental Management,
whichever occurs later, the Hughes Group, Inc., shall
proper notice of termination under
5.8 of the lease, and in the event no such
is received by that date, Hughes Group, Inc.
be deemed to have waived its right of
under the lease and shall be responsible
of all rent through the primary term of
That all funds received by the Hughes Group, Inc.,
during 1991 from sub-lessees within the leasehold
premises shall be held in an escrow account jointl~
maintained by the Hughes Group, Inc., and the
Jeffersonville Parks Department. Said funds may be
disbursed only for payment of rent acquired to the
City of Jeffersonville under the~provisions of the
ground lease, or for the payment of maintenance and
upkeep expenses for the subject leasehold premises,
and Hughes Group, Inc., shall provide proof of such
expenditures by receipts or other written evidence to
the Superintendent of the Jeffersonville Parks
Department for approval by the Jeffersonville Parks
Board and the Common Council.
In the event that Hughes Group, Inc., terminates the
lease prior to waiving all contingencies, the balance
of escrow monies shall be returned to the City of
Jeffersonville. In the event that the Hughes Group,
Inc. waives all contingencies and proceeds with their
obligations during the primary term of said lease,
all remaining escrow funds shall be returned to the
Hughes Group, Inc.
H~lghes Group, Inc.,
for the maintenance,
shall have full responsibility
upkeep, and operation of the
leasehold premises during calendar year 1991. In the
event that Hughes Group, Inc., terminates its rights
and responsibilities under the lease during 1991 the
premises shall be surrendered to the City of
Jeffersonville no later than January 1, 1992, in
substantially the same condition as exists today
subject
site.
That the City
Common Council
disapprove any
to any naturally occurring condition at the
of Jeffersonville by and through its
shall have the right to approve or
lease arrangement entered into by
Hughes Group, Inc., for mooring space in the subject
leasehold premises beyond January 1, 1992, until such
time as Hughes Group, Inc., issues its notice to
proceed with the primary term of the lease.
That so long as the provisions set forth in this
Resolution are adequately addressed and the addendum
to the ground lease between the City of
Jeffersonville, Indiana, and Hughes Group, Inc., to
be negotiated and prepared by the City Attorney, the
Mayor and Common Council President are hereby
authorized to execute addendum on behalf of the
Common Council of the City of Jeffersonville.
Passed and adopted this 4th day of February,
Common Council of
Clark County, Indiana.
In no event shall this resolution be construed to
allow the Hughes Group, Inc., Go continue to occupy
the leasehold premises after April 1, 1992, without
either (1) giving its notice to proceed and waive all
contingencies, or (2) obtaining further consent from
the Common Council.
1991, by the
the City of jeffersonville,
ATTEST:
Presented by me as
City of jeffersonville,
1991.
PRESIDENT, COMMON COUNCIL
Clerk-Treasurer to the Mayor of the
Indiana, this 4th day of February,
Approved and signed by me this 4th day of February, 1991.
MAYOR DALE L. OREM