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HomeMy WebLinkAboutEDCRes2019.04.01ANNA ECONOMIC DEVELOPMENT CORPORATION RESOLUTION NO. Y. Z-0 t9 A RESOLUTION 'OF THE ANNA ECONOMIC DEVELOPMENT CORPORATION AUTHORIZING THE ANNA ECONOMIC DEVELOPMENT DIRECTOR TO ENTER INTO AMENDMENTS TO MODIFY OR TERMINATE EXISTING LEASE AGREEMENTS WHEREAS, the Anna Economic Development Corporation (the "EDC") is the owner of real property located at 312 N. Powell Parkway, Anna, Texas (the "Property"); and WHEREAS, the Property includes a structure used primarily for office space (the "Structure") and the EDC currently leases certain parts of the Structure to various tenants; and WHEREAS, on or about February 8, 2019, an agent of the Texas Department of Transportation (the "Department") supplied the EDC with written notice (the "Notice") that the Department was initiating property acquisitions for the widening of State Highway 5; and WHEREAS, the Notice stated the Department's intention to acquire a strip of real property running along and encroaching beyond the western boundary line of the Property; and WHEREAS, said encroachment extends into the western portion of the Structure necessitating that such portion of the Structure be demolished and repaired; and WHEREAS, it is anticipated that such demolition and repair will result in substantial disruption with respect to access and use of the Structure; and WHEREAS, the Board of Directors of the EDC (the "Board") finds that the Department's impending purchase and/or condemnation of a portion of the Property are likely to trigger a certain provision in the agreements between the EDC and the tenants occupying various portions of the Structure (the "Lease Agreements"); and WHEREAS, said provision of the Lease Agreements results in automatic termination of the Lease Agreements if any part of the Property is taken by eminent domain or conveyed in lieu thereof; and WHEREAS, the Board desires there to be an orderly administrative process of terminating or modifying any and all of the Lease Agreements; and WHEREAS, the Board desires to delegate full authority to the City of Anna Economic Development Director (the "Director") to take all necessary action to terminate or modify any or all of the Lease Agreements in accordance with the provisions of this resolution; ANNA EDC RESOLUTION NO. • -Z,4 I q PAGE 1 OF 2 NOW THEREFORE, BE IT RESOLVED BY THE ANNA ECONOMIC DEVELOPMENT CORPORATION, THAT: Section 1. Recitals Incorporated The recitals set forth above are incorporated herein for all purposes as if set forth in full. Section 2. Authorization to Terminate or Modify Lease Agreements (a) The Board of Directors of the Anna Economic Development Corporation authorizes the Director to act on behalf of the EDC to terminate or modify any of the Lease Agreements, placing full decision -making authority with the Director to determine the extent to which any given Lease Agreement should be terminated or modified as appropriate in order to: (1) allow tenants to have a Lease Agreement terminated if they desire; or (2) allow tenants to have a Lease Agreement modified as appropriate if they desire to continue to lease a part of the Structure; provided, however, that if modifying a Lease Agreement is not practicable due the events and circumstances surrounding the demolition and/or repair of the Structure, then the Director shall take all necessary steps to terminate such Lease Agreement instead of modifying it. (b) The Director shall have full authority to execute any and all instruments, amendments and other documents on behalf of the EDC and the Director may waive, suspend, decrease or otherwise alter the amount of rent that might otherwise be due under the Lease Agreement. (c) Notwithstanding any provision of this resolution, the Director shall not be authorized to pay any amounts to any of the tenants of the Structure for relocation expenses or any other payments without the express written approval of the Board; provided, however, that the Director may authorize a prorated refund of prepaid rent if the Lease Agreement with a tenant is terminated earlier than the period of time that such prepaid amount would cover. PASSED A D APPROVED by the Anna Economic Development Corporation this day of 2019. APPROVED: ATTEST: 9, Anthony ichards n EDC President Jim Gurs i, EDC Secretary ANNA EDC RESOLUTION NO. PAGE 2 OF 2