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RESOLUTION 2015-4

A RESOLUTION AUTHORIZING EXECUTION OF A LEASE
OF CITY PROPERTY AND BUILDING AT SW CORNER OF
WILKERSON AND MAIN DRIVE
WHEREAS, the City owns a building and property at the corner of Wilkerson and Main
whose address is 2805 Main Drive, Johnson, Arkansas;
WHEREAS, Michael Schreiber and Terri Bitting are desirous of renewing the lease of that
property for a term and at a rate set forth in the attached Lease document.
BE IT RESOLVED BY THE CITY COUNCIL OF JOHNSON, ARKANSAS, that:
I. The attached Lease of the property at 2805 Main Drive for a term of thirty-six (36)
months, upon the terms and conditions set forth in said Lease beginning the 1ST day of April 2015 through the 31ST day of March, 2018 is hereby approved and accepted, and all and every action and payment made since 03-01-2015 is hereby expressly ratified and confirmed.
2. That Mayor and Recorderffreasurer are authorized to take such steps as are necessary
to execute the LEASE on behalf of the City obtaining for the citizens of Johnson the benefits and
services described therein and to carry out the terms and conditions imposed upon the City as
Landlord/Lessor provided for therein.

 

LEASE
THIS AGREEMENT made and entered into on \\ -VV\~1-T , 2015, between
THE CITY OF JOHNSON, ARKANSAS, herein referred to as Lessor, and Michael Schreiber
and Terri Bitting, herein referred to as Lessee, Lessor leases to Lessee the premises situated at
2805 Main Street, in the City of Johnson, County of Washington, State of Arkansas, more
particularly described as follows: the commercial building having approximately 750 square feet
(gross) and the surrounding parking lot and yard area bounded by Wilkerson Street, Main Street,
the Green property and the City Park west of the parking lot, herein referred to as the demised
premises, together with all appurtenances, for a term of thirty-six (36) months, to commence on
April!, 2015, and to end on March 31,2018, at 2400 Hours.
I. RENT. Lessee agrees to pay, without demand, to Lessor as rent for the demised
premises the sum of $700.00 per month, all rent payments shall be due in advance on or before
the first day of each calendar month beginning April I, 2015, at Johnson City Hall, Johnson,
Arkansas, or at such other place as Lessor may designate. There shall be a late fee of $5.00 per
day for each day, beyond the 5'h of each month that the full rental is not paid. See Section 7
regarding prepayment and damage deposit. Subject to the provisions of Section 21 regarding
special escape provisions, this Lease is for the entire term and the total due Lessor by Lessee
over the term is $25,200.00.
2. QUIET ENJOYMENT. Lessor covenants that upon Lessee paying the rent and
performing the covenants herein contained, Lessee shall peacefully and quietly have, hold and
enjoy the demised premises for the agreed term. Lessee acknowledges that the demised premises
are situate next door to the City Park where persons congregate and participate in activities as
well as being across the street from the Johnson Police Department and occasionally the
emergency vehicles activate their lighting system or siren in carrying out duties of the police
department. Due to the proximity to the City Park the parking spaces on the West side of the
parking lot will be shared, on a first come-first served basis; other spaces may be identified as
being for leascc's customers only.
3. USE OF PREMISES The demised premises shall be used and occupied by
Lessee exclusively as a commercial business and normal associated uses. Lessee shall comply
with all the sanitary laws, ordinances, rules and orders of appropriate governmental authorities
affecting the cleanliness, occupancy, and preservation of the demised premises, and the
sidewalks connected thereto, during the term of the lease.
4. CONDITION OF PREMISES. Lessee stipulates that Lessee has examined the
demised premises, including the grounds and all buildings and improvements, and that they are,
at the time of this lease, in good order, good repair, and in a safe, clean and tenantable condition.
LESSEE accepts the premises as is.
5. ASSIGNMENT AND SUBLETTING. Lessee shall not ass1gn this lease, or

sublet or grant any concession or license to usc the premises or any part thereof. Any attempted
assignment, subletting, concession or license, shall be void and shall, at Lessor's option,
terminate this lease.
6. AL TERA TlONS AND IMPROVEMENTS. Lessee shall make no alterations to
the demised premises or construct any building or make other improvements on the demised
premises without prior written approval of Lessor. All alterations, changes, and improvements
built, constructed, or placed on the demised premises by Lessee, with the exception of fixtures
removable without damage to the premises and movable personal property, shall, be the property
of Lessor and remain on the demised premises at the expiration or sooner termination of this
lease.
7. DAMAGE TO PREMISES. If the demised premises, or any part thereof, shall be
partially damaged by tire or other casualty not due to Lessee's negligence or willful act or that of
his employee, family, agent, or visitor, the premises shall be promptly repaired by Lessor and
there shall be an abatement of rent corresponding with the time during which, and the extent to
which, the demised premises may have been untenantable; but, if the demised premises should
be damaged to a significant extent, then the Lessor may decide not to rebuild or repair, and, in
such event, the term of this lease shall end and the rent shall be prorated up to the time of the
damage. Prior to any occupancy of the demised premises, Lessee shall pay in full the first
months rental plus a damages deposit in the amount of $0 to cover (go towards)
repair of any damages accruing to the demised premises caused or allowed by Lessee during the
term of Lessee's occupancy save reasonable wear and tear only.
Lessor may expend said damage deposit or so much thereof as many may be necessary to
cover cost of repairs occasioned by damages as aforesaid and Lessor may call upon Lessee to
replenish said fund or so much thereof expended for said purposes and the failure of Lessee to
replenish said funds shall constitute a breach under this Lease for which Lessor may as its option
terminate the Lease. In the event of a breach by the Lessee of the covenants or conditions
hereof, said sum may be retained by the Lessor and applied toward any amounts due Lessor
hereunder. Said fund or the unused portion thereof shall be returned to the Lessee upon the
expiration of the Lease and delivery of possession according to the terms hereof. This deposit is
not to be applied by the Lessee to the last month's rent.
Within thirty (30) days after termination of tenancy by the Lessee, the security deposit
shall be returned to Lessee, less any portion retained by Lessor for damages caused by the
Lessee's noncompliance with this Lease. These items will be set out on a written notice
delivered to the Lessee with the remainder of the deposit. Lessor shall be deemed to have
complied with this section by mailing via first class mail the written notice and return of security
deposit to the last known address of the Lessee. If the letter is mailed and the Lessor is unable to
locate the Lessee after reasonable effort, then the security deposit shall become the property of
the Lessor one hundred eighty ( 180) days from the date payment was mailed.
8. DANGEROUS MATERIALS. Lessee shall not keep or have on the leased
premises any article or thing of a dangerous, flammable, or explosive character that might
unreasonably increase the danger of fire on the demised premises or that might be considered
hazardous or extra hazardous by any responsible insurance company.
9. UTILITIES. Lessee shall be responsible for arranging for and paying for all

utility deposits and services required on the premises, including but not limited to water, sewer,
gas, electric, cable, telephone and any other desired by Lessee.
10. MAINTENANCE AND REPAIR. Lessor will, at his sole expense, keep and
maintain the structural/exterior portion of the demised premises and appurtenances in good and
sanitary condition and repair during the term of this lease. Lessee shall at Lessee's expense keep
the fixtures in the leased premises in good order and repair, keep the furnace air conditioning
unit and all filters clean; keep the electric equipment in order; keep the walks free from dirt and
debris; and, at Lessee's sole expense, shall make all required repairs to the plumbing, range,
heating units, air conditioning units and electric and gas fixtures whenever damage thereto shall
have resulted from Lessee's misuse, waste, or neglect or that of his employee, family, agent or
visitor. Maintenance and repair of the leased premises, due to Lessee's misuse, waste, or neglect
or that of his employee, family, agent or visitor, shall be the responsibility of Lessee.
Lessee, at Lessee's sole expense, shall maintain the yard area to consist of mowing grass,
trimming plants, raking leaves and picking up fallen branches, snow removal from steps/walks,
and parking lot and similar tasks appropriate to the season. If Lessee fails to properly maintain
the yard/parking lot, Lessor shall have a written notice affixed to the front door of the demised
premises. If the yard/parking lot maintenance is not performed within five (5) days following the
posting of the notice, Lessor shall have the option of having the noticed yard/parking lot
maintenance performed by Lessor's employees or others. and in any event, Lessor shall be paid
for performing such yard work at the rate of $85.00 per occasion. If Lessee fails to pay that sum
with ten (I 0) days of Lessor performing the work, then Lessor may deduct such sum from the
damages deposit or may declare Lessee to be in breach of the terms of this lease and proceed in
accordance with Section 16 hereof.
Lessee agrees that no signs shall be placed on or about the leased premises by Lessee or
at Lessee's direction without a City of Johnson sign permit.
II. ANIMALS. Lessee shall keep no domestic or other animals on or about the
demised premises.
12. RIGHT OF INSPECTION. Lessor and Lessor's agents shall have the right at all
reasonable times during the term of this lease to enter the demised premises for the purpose of
inspecting the premises and all building and improvements thereon.
13. SUBORDINATION OF LEASE. This lease and Lessee's leasehold interest
hereunder are and shall be subject, subordinate, and inferior to any liens or encumbrances now or
hereafter placed on the demised premises by Lessor, all advances made under any such liens or
encumbrances, the interest payable on any such liens or encumbrances, and any and all renewals
or extensions of such liens or encumbrances.
14. HOLDOVER BY LESSEE. Should Lessee remain in possession of the demised
premises with the consent of Lessor after the natural expiration of this lease, a new month-tomonth
tenancy shall be created between Lessor and Lessee which shall be subject to all the terms
and conditions hereof but shall be terminated on thirty (30) days' written notice served by either
Lessor or Lessee on the other party.

15. SURRENDER OF PREMISES. At the expiration of the lease term, Lessee shall
quit and surrender the premises hereby demised in as good state and condition as they were at the
commencement of this lease, reasonable usc and wear thereof and damages by the elements
excepted.
16. DEFAULT. If any default is made in the payment of rent, or any part thereof, at
the times hereinabove specified, or if any default is made in the performance of or compliance
with any other term or condition hereof, this Lease, at the option of Lessor, shall terminate and
be forfeited, and Lessor may re-enter the premises and remove all persons therefrom. Except
with respect to non-payment of rent, Lessee shall be given written notice of any default or
breach, and termination and forfeiture of the lease shall not result if, within five days of receipt
of such notice, Lessee has corrected the default or breach or has taken action reasonably likely to
effect such correction within a reasonable time.
17. ABANDONMENT. If at any time during the term of this lease Lessee abandons
the demised premises or any part thereof, Lessor may, at his option, enter the demised premises
by any means without being liable for any prosecution therefor, and without becoming liable to
Lessee for damages or for any payment of any kind whatever, and may, at his discretion, as agent
for Lessee, relet the demised premises, or any part thereof, for the whole or any part of the then
unexpired term, and may receive and collect all rent payable by virtue of such reletting, and, at
Lessor's option, hold Lessee liable for any difference between the rent that would have been
payable under this lease during the balance of the unexpired term, if this lease had continued in
force, and the net rent for such period realized by Lessor by means of such reletting. If Lessor's
right of re-entry is exercised following abandonment of the premises by Lessee, then Lessor may
consider any personal property belonging to Lessee and left on the premises to also have been
abandoned, in which case Lessor may dispose of all such personal property in any manner Lessor
shall deem proper and is hereby relieved of all liability for doing so.
18. INSURANCE: Lessor's insurance covers only the structure and will not pay
Lessee for any business disruption caused by damages to the structure. Lessee is strongly
encouraged to insure Lessee's property and the property of others in/around the structure and to
insure against disruption of Lessee's business. Lessee shall ma~~tain a policy of general liability
against all perils in an amount not less than $ 50,000 during the term of Lessee's
occupancy of the demised premises and provide a copy of said policy to Lessor upon request.
19. CREDIT WORTHINESS: Lessee understands that Lessee having a good credit
rating is a condition to Lessor's willingness to enter into this Lease, Lessee has provided
information necessary fi.1r Lessor to perform such credit check and hereby authorizes Lessor to
do so and ratifies such action by Lessor.
20. BINDING EFFECT. The covenants and conditions herein contained shall apply
to and bind the heirs, legal representatives, and assigns of the parties hereto, and all covenants
are to be construed as conditions of this lease.
21. SPECIAL ESCAPE PROVISIONS. Regardless of Section I and other provisions
hereof, to the contrary, the parties hereto have expressly agreed that upon the giving of three (3)

full months written advance notice either party may terminate this lease agreement without
penalty or forfeiture. Such written advance Notice shall be delivered only by certified mail,
return receipt requested, addressee or addressee's agent only, with such delivery occurring prior
to the first day of the first of the three months mentioned above.