HomeMy WebLinkAboutRes 2018-04-435 Leaseback from Jonic Investments for City Hall useCITY OF ANNA, TEXAS
RESOLUTION NO. ', S - �- 4-5-
A RESOLUTION OF THE CITY OF ANNA, TEXAS, APPROVING A LEASEBACK OF
PROPERTY OWNED BY JONIC INVESTMENTS, LLC, A TEXAS LIMITED
LIABILITY COMPANY FOR USE AS CITY HALL FOR THE CITY OF ANNA.
WHEREAS, the City Council of the City of Anna, Texas ("City Council'), has found that
the property owned by Jonic Investments, LLC, a Texas limited liability company is
needed for the city hall project; and,
WHEREAS, Jonic Investments, LLC, a Texas limited liability company is willing to
trade land owned for property currently owned by the City of Anna that is currently
being used as city hall; and
WHEREAS, Jonic Investments, LLC, a Texas limited liability company is willing to
leaseback city hall to the City until the new proposed city hall is constructed; and
WHERAS, the leaseback agreement will be for $10 per year until January 1, 2021
and $1,000 per month thereafter.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
ANNA, TEXAS, THAT:
Section 1. Recitals Incorporated.
The recitals above are incorporated herein as if set forth in full for all purposes.
Section 2. Authorization to leaseback property and execute agreement.
The City Council hereby approves the leaseback agreement and the City Council further
hereby authorizes, approves, and ratifies the City's duly authorized agents, including the
Mayor or City Manager, to execute or to have executed all required instruments to
accomplish the leaseback agreement identified in this resolution.
PASSED AND APPROVED by the City Council of the City of Anna, Texas, on this the
24th day of April 2018.
ATTEST: APPROVED:
City Secretary, Carrie' ./ Smith ��, .• t� Mayo Nate Pike
EXHIBIT A
LEASE AGREEMENT
THIS LEASE AGREEMENT (this "Lease") is entered into by and between Jonic Investments, LLC, a
Texas limited liability company ("Landlord") and the City of Anna, a Texas home -rule municipality ("Tenant"). For
valuable consideration the parties agree and act as follows:
1. Definitions. The following terms have the meanings set forth below:
(a) Effective Date. The effective date of this Lease is
(b) Leased Premises. The exclusive use of a 3,150 square foot building and related improvements, the
approximately 1.15 acre tract of land upon which said building and improvements are situated and the parking lot
thereon (collectively, the "Premises") located in the City of Anna, Collin County, Texas, said tract of land being
described in Exhibit 1 attached hereto, together with any and all appurtenances, easements and privileges pertaining
to the Premises.
(c) Lease Term. The lease term shall begin upon conveyance of the Premises from Tenant to Landlord
under that certain Contract for Sale and Leaseback of Real Property ("Conveyance Agreement"). The lease term
shall expire on the earlier of: (1) the date that the City provides written termination notice confirming that it no
longer occupies the City Property; or (2) January 1, 2021. The City may exercise the right to continue to extend this
Lease after January 1, 2021 on a month -to -month basis with 30 days' notice of termination at the rate set forth in
Section 3.(a)(2), below.
(d) Permitees. All officials, officers, directors, employees, agents, contractors, customers, visitors and
invitees of Tenant at the Leased Premises.
(e) Permitted Exceptions. The conditions, restrictions, easements and encumbrances, if any, affecting
We to the Leased Premises set forth in the owner's title of policy insurance obtained by Landlord pursuant to the
Conveyance Agreement.
(f) City Council. The City Council of the City of Anna, Texas.
2. Demise. Term.
(a) Demise and Grant of Leased Premises. Landlord hereby leases to Tenant and Tenant accepts from
Landlord under the terms, provisions and conditions of this Lease the Leased Premises commencing on the Effective
Date hereof and continuing until the expiration or earlier termination of the Term as hereinafter provided.
(b) Term. The term of the Lease is as set forth in 1.(c), above.
(c) Improvements. Any and all structures and other improvements existing on the Leased Premises at
the beginning of the Term or thereafter installed or constructed.
(d) ,Quiet Enjoyment. Upon Tenant's payment of all rent hereunder as same becomes due and
observance and performance of the covenants, terms and conditions to be observed and performed by Tenant
pursuant to this Lease, Tenant shall have throughout the Term, peaceful, quiet and undisturbed use and possession of
the Leased Premises and all rights and privileges appertaining thereto, subject to the terms, conditions and
provisions of this Lease.
(e) Landlord's Title, Subordination. Landlord covenants, represents and warrants to Tenant as follows:
(1) Title. Landlord hereby represents and warrants that it owns good and indefeasible fee simple
title in and to the Leased Premises, subject only to the Permitted Exceptions, and has full right and authority to make
thIS Lease.
(2) No Actions. There are no actions, suits or proceedings pending or to the best of Landlord's
knowledge, threatened against Landlord and affecting any portion of the Leased Premises, at law or in equity, or
before any federal, state, municipal or other governmental court, department, commission, board, bureau, agency or
instrumentality, domestic or foreign.
(3) Authori .The execution and consummation of this Lease by Landlord has been duly
authorized and does not result in a breach of any of the terms or provisions of, or constitute a default under, any
indenture, agreement, instrument or obligation to which Landlord is a party or by which the Leased Premises or any
portion thereof is bound. However, notwithstanding the foregoing or any term or provision of this Lease, and all
rights and obligations of Landlord and Tenant hereunder are subject to and shall not be effective unless and until
there has been formal approval by the City Council of this Lease at a duly noticed public meeting.
(f) Condition of Leased Premises. TENANT UNDERSTANDS AND ACKNOWLEDGES ITS
ACCEPTANCE OF THE LEASED PREMISES IS WITHOUT RECOURSE, REPRESENTATION OR
WARRANTY (EXCEPT AS SPECIFICALLY SET OUT HEREIN) OF ANY KIND, EXPRESS, IMPLIED OR
STATUTORY AND LANDLORD IS LEASING THE LEASED PREMISES AS IS, WHERE IS, AND WITH ALL
FAULTS, AND WITHOUT REPRESENTATIONS OR WARRANTY (ALL OF WHICH LANDLORD HEREBY
DISCLAIMS) AS TO FITNESS FOR ANY PARTICULAR PURPOSE, MERCHANTABILITY, DESIGN,
QUALITY, LAYOUT, FOOTAGE, PHYSICAL CONDITION, OPERATION, COMPLIANCE WITH
SPECIFICATIONS, ABSENCE OF LATENT DEFECTS, OR COMPLIANCE WITH LAWS AND
REGULATIONS. TENANT HEREBY ASSUMES ALL RISK AND LIABILITY (AND AGREES THAT
LANDLORD SHALL NOT BE LIABLE FOR ANY SPECIAL, DIRECT, INDIRECT, CONSEQUENTIAL, OR
OTHER DAMAGES) RESULTING OR ARISING FROM OR RELATING TO THE OCCUPANCY,
CONSTRUCTION, USE, CONDITION, LOCATION, MAINTENANCE, REPAIR, OR OPERATION OF THE
LEASED PREMISES. TENANT ACKNOWLEDGES THAT TENANT HAS INSPECTED THE LEASED
PREMISES AND ACCEPTS THE LEASED PREMISES "AS IS," "WHERE IS" AND "WITH ALL FAULTS."
3. Rent and Taxes. Tenant shall pay Landlord the following amounts:
(a) Rent.
(1) Tenant shall pay to Landlord as rent ("Rent") for the Leased Premises a single lump sum
payment of $10 annually, the receipt and sufficiency of which is hereby acknowledged.
(2) If the lease term is extended after January 1, 2021, the Rent shall increase to $1,000 per
month due on the fifth day of each month beginning January 5, 2021.
(b) Taxes. Tenant shall be liable to timely pay or reimburse Landlord for any taxes that may become due
during the Term on a pro rats basis calculated as a percentage of the tax liability for the number of days in the
applicable tax year during which Tenant occupies the Property under this Lease. Either Landlord or Tenant may
dispute taxation or
4. Improvements, Signs, Additions and Repairs.
(a) Delivery of Leased Premises. Landlord shall deliver exclusive possession of the Leased Premises to
Tenant upon the beginning of the Term, subject only to the provisions and terms of this Lease and the Permitted
Exceptions.
(b) Alterations and Improvements. With the exception of signs erected in conformance with applicable
laws and ordinances, and construction of Improvements as approved in writing by Landlord and, if required under
City ordinances) or the City Council, set forth on one or more site plans submitted to and formally approved by the
City Council during a duly posted meeting, and constructed in accordance with construction plans submitted to and
approved in writing by the City or City staff, Tenant may not at any time construct, alter, change, and/or demolish
any signs or Improvements now or hereafter situated on the Leased Premises. If any such construction by Tenant is
at any time approved:
LEASE AGREEMENT PAGE 2
(1) All such work shall be performed m a good and workmanlike manner, in accordance with
accepted standards of engineering and architecture, if applicable, and in accordance with local, state and federal law,
including but not limited to the Americans with Disabilities Act;
(2) Such conshuction, alteration, additions, changes or demolishment shall be incompliance
with all applicable building codes, zoning, rules, regulations and ordinances affecting construction of such
alterations, additions, and changes and shall be commenced only after Tenant has been duly granted all applicable
permits for same; and
(c) No Mechanic's Liens. Tenant shall not permit any mechanic's or materialman's liens to be filed
against Landlord's interest in the Leased Premises arising out of the Tenant Improvements (unless the same are fully
bonded so as to cause same to be removed in accordance with applicable law), and Tenant shall indemnify, defend
(using counsel acceptable to Landlord in its reasonable discretion), and hold harmless Landlord from and against
any costs, liability or expense, including attorneys fees, attributable to any such liens. Tenant's obligations under
this paragraph 4(c) shall expressly survive the expiration or earlier termination of this Lease.
(d) Environmental. Tenant will conduct its business in a lawful manner and will not make or permit any
unlawful use of the Leased Premises. Tenant will, at its own expense, promptly comply with all laws, regulations,
and ordinances affecting the Leased Premises and the cleanliness, safety, occupancy, and use thereof. TENANT
SHALL INDEMNIFY, DEFEND (USING COUNSEL ACCEPTABLE TO LANDLORD IN ITS REASONABLE
DISCRETION) AND HOLD HARMLESS LANDLORD FROM AND AGAINST ANY COST, LIABILITY OR
EXPENSE ARISING OUT OF OR ATTRIBUTABLE TO ANY CLAIMS, DEMANDS, CAUSES OF ACTION,
FINES, PENALTIES, LIABILITY OR EXPENSES (INCLUDING ATTORNEY FEES AND COURT COSTS)
ARISING OUT OF OR RELATED TO THE EXISTENCE, REMOVAL OR DISPOSAL OF ANY TOXIC OR
HAZARDOUS SUBSTANCES OR MATERIALS WITHIN OR UPON THE LEASED PREMISES CAUSED BY
TENANT, ITS EMPLOYEES, AGENTS OR REPRESENTATIVES DURING THE TERM OF THIS LEASE
FOLLOWING THE EFFECTIVE DATE. FOR PURPOSES HEREOF, THE PHRASE "TOXIC OR HAZARDOUS
SUBSTANCES OR MATERIALS" SHALL INCLUDE ITEMS COVERED BY THE COMPREHENSIVE
ENVIRONMENTAL RESPONSE, COMPENSATION AND LIABILITY ACT OF 19805 42 U.S.C. §§9601-
75(1986), AS AMENDED BY THE SUPERFUND AMENDMENT AND REAUTHORIZATION ACT, PUB. L.
NO.994995 100 STAT. 1613 (1986) ("CERCLA"), THE TOXIC SUBSTANCES CONTROL ACT, 15 U.S.C.
§2601 ET SEQ., THE CLEAN WATER ACT, 33 U.S.C. §1251 ET SEQ., THE SAFE DRINKING WATER ACT,
42 U.S.C. §§300(f)-3000), AND OTHER FEDERAL, STATE AND LOCAL LAWS NOW OR HEREAFTER IN
EFFECT GOVERNING THE EXISTENCE, REMOVAL OR DISPOSAL OF TOXIC OR HAZARDOUS
SUBSTANCES OR MATERIALS. Tenant's obligations under this para, ag Wh 4(d) shall expressly survive the
expiration or earlier termination of this Lease.
(e) Repairs. Tenant shall, at its sole cost and expense, perform all repairs and preventative maintenance
necessary to maintain the Leased Premises in good condition and repair, ordinary wear and tear excepted, and keep
the Leased Premises in compliance with applicable law throughout the Term. The foregoing shall not in any way
impair or limit Tenant's right to make alterations or additions to the Leased Premises as set forth in paragraph 4(b)
above. Tenant's obligations under this paragrph 4(e) shall expressly survive the expiration or earlier termination of
this Lease.
(f) Tenant's Fixtures. Tenant may install in or upon the Leased Premises such trade fixtures and
equipment as Tenant deems desirable, provided that Tenant does so in accordance with a written plan demonstrating
the size and configuration of such fixtures and equipment upon the Leased Premises. All of said items shall remain
Tenant's property whether or not affixed or attached to the Leased Premises. Tenant may remove such items from
the Leased Premises at any time during the Term. Nothing contained in this paragraph 4(fl shall diminish Tenant's
obligations to maintain the Leased Premises pursuant to paragraph 4(e).
(g) Platting, Site Plans, Approvals. Landlord and Tenant acknowledge that it may be necessary, from
time -to -time, for Landlord or Tenant to seek governmental approvals with respect to platting, zoning, site plans,
permitting and/or obtaining other permits in connection with its use and occupancy of the Leased Premises for the
LEASE AGREEMENT PAGE 3
uses permitted hereby (collectively, "Approvals"). Landlord agrees to reasonably cooperate with Tenant with respect
to its obtaining the Approvals and to execute such documents as may be required of the owner of fee title to the
Leased Premises in order for Tenant to obtain the Approvals, provided that Landlord shall not incur any costs or
liabilities in connection therewith, and Landlord does not guarantee or make any representations with regard to
Tenant's ability to actually obtain the Approvals. Tenant expressly understands and agrees that approval by the City
Council of this Lease does not constitute the City Council's granting of an Approval and does not bind the City
Council to grant or approve any other Approvals.
5. Utilities. Tenant shall at its own expense arrange with the appropriate utility suppliers for services to the
Leased Premises, pay all connection, meter and service charges and deposits required to connect utilities to the
Leased Premises, and pay such utility suppliers directly for such services. Landlord shall not pay any sum in
connection with utility installation or service on the Leased Premises.
6. Use, Transfers, or Assignments.
(a) Tenant's Use. Except as prohibited or restricted by the Permitted Exceptions, Tenant may use the
Leased Premises for any lawful purpose, provided that such purpose is in conformity with all applicable site plans,
zoning, and Approvals, and other restrictions set forth in this Lease and which may otherwise apply to the Leased
Premises.
(b) Assignment, Subletting. Tenant shall not assign all or any part of this Lease or sublet all or any part
of the Leased Premises without Landlord's written consent. In the case of any assignment or sublease permitted by
Landlord, Tenant shall not be released from liability.
7. Indemnification, Insurance.
(a) Indemnification. IN ADDITION TO ANY OTHER PROVISIONS OF THIS LEASE, TENANT
SHALL INDEMNIFY, HOLD HARMLESS, AND, AT LANDLORD'S OPTION, DEFEND (USING COUNSEL
ACCEPTABLE TO LANDLORD IN ITS REASONABLE DISCRETION) LANDLORD AND ITS OFFICERS,
DIRECTORS, AGENTS AND EMPLOYEES (COLLECTIVELY, THE "INDEMNIFIED PARTIES") FROM
AND AGAINST ANY AND ALL LIABILITY, LIENS, CLAIMS, DEMANDS, DAMAGES, EXPENSES, FEES,
COSTS, REASONABLE ATTORNEY FEES AND LITIGATION COSTS, FINES, PENALTIES, SUITS,
PROCEEDINGS, ACTIONS AND CAUSES OF ACTION OF ANY AND EVERY KIND AND NATURE
ARISING OUT OF TENANT'S USE, OCCUPANCY, CONSTRUCTION, MANAGEMENT OR CONTROL OF
THE LEASED PREMISES, IMPROVEMENTS OR TENANT'S OPERATIONS, CONDUCT OR ACTIVITIES,
UNLESS AND TO THE EXTENT THE SAME IS DUE TO THE NEGLIGENCE, GROSS NEGLIGENCE, OR
INTENTIONAL ACTS OR OMISSIONS OF LANDLORD, ITS AGENTS, EMPLOYEES OR CONTRACTORS.
TENANT'S OBLIGATIONS UNDER THIS PARAGRAPH 7(a) SHALL SURVIVE THE EXPIRATION OR
EARLIER TERMINATION OF THE LEASE TERM.
(b) Tenant's Insurance. Tenant shall, at its expense, obtain comprehensive general liability insurance or
risk pool coverage against all claims on account of bodily injury, personal injury or property damage, for which
Tenant may, as a result of its operations or other use of the Leased Premises, become liable, with limits of not less
than the statutory maximum liability of Tenant.
(c) Workers Compensation. Tenant shall maintain workers compensation or similar insurance affording
not less than Texas statutory coverage minimums and providuag not less than statutory limits or benefits for all
employees of Tenant employed at the Leased Premises.
(d) Scope, The insurance or risk pool policies or duly executed certificates thereof, together with
satisfactory evidence that the premium has been paid, shall be provided to Landlord on or before the Effective Date
oI this Lease; and, thereafter, evidence of continuing insurance and premium payment shall be delivered to Landlord
not less than 30 days prior to the expiration of each policy required to be in force hereunder. If Tenant fails to
maintain the required insurance or to deliver evidence of same this Lease will continue in full force and effect;
LEASE AGREEMENT PAGE 4
provided, however, that Landlord may, but shall not be obligated to, obtain such insurance and be reimbursed by
Tenant upon demand.
(e) Waiver of Subro ag tion. Landlord shall not be liable by way of subrogation or otherwise to Tenant or
to any insurance company insuring Tenant for any loss or damage to any of the property of the Landlord or Tenant
covered by insurance even though such loss or damage might have been occasioned by the negligence of: (1)
Landlord or its officers, directors, employees, agents, contractors, customers, or visitors and invitees of Landlord at
the Leased Premises; or (2) Tenant or its Permitees. This waiver shall be in effect only so long as the applicable
insurance or risk pool policies shall contain a clause or endorsement to the effect that the waiver shall not affect the
right of the insured to recover under such policies. Tenant shall use its best efforts, including payment of any
additional premium, to have its insurance policies contain the standard waiver of subrogation clause. In the event
Tenant's insurance carrier declines to include in such carrier's policies a standard waiver of subrogation clause,
Tenant shall promptly notify Landlord.
8. Destruction Condemnation.
(a) Destruction.
(1) Cancellation. If any portion of the Improvements situated on the Leased Premises shall be
damaged or destroyed, this Lease shall continue in full force and effect and shall not be affected thereby.
(2) Restoration. In the event of unintended damage or destruction, Tenant shall remove any
debris and cause the Leased Premises to be repaired or restored as Tenant may deem necessary or desirable, but in
any event the Leased Premises shall be repaired or restored to a safe and sightly condition in compliance with all
applicable laws.
(3) Insurance Proceeds. All of Tenant's insurance proceeds payable with respect to damage or
destruction of the improvements situated on the Leased Premises shall be retained by and be the property of Tenant.
(b) Condemnation.
(1) Taking of Parkin og r Access. In the event of a taking by the power of eminent domain or
conveyance in lieu thereof ("Taking") of the whole or any part of the Leased Premises, this Lease shall terminate as
to the portion so taken but shall remain in full force and effect as to the balance of the Leased Premises.
(2) Awards. All compensation awarded for any Taking of the Leased Premises, including any
interest of Landlord or Tenant therein, shall be the property of Landlord, and Tenant hereby assigns to Landlord all
of Tenant's rights, title and interest in and to any and all such compensation.
(3) Restoration. If there is a Taking of all or part of the Leased Premises, Tenant, at its sole
discretion and expense, shall restore and rebuild the Leased Premises, in such manner as Tenant may elect, provided
that the same shall be in accordance with all applicable laws.
9. General Provisions.
(a) Notice. "Notice" shall mean any notice, notification, consent, approval, request, designation,
submission, specification, election or other communication required or permitted under this Lease. All Notices shall
be in writing and shall be deemed to have been given and received the earlier of (1) the date the Notice is delivered
by one party to the other party personally or delivered to the party's address by a party or by a delivery service
which records delivery dates, or (2) three days after the Notice is placed in the mail addressed to the other party at
the party's address, properly stamped, certified or registered mail, return receipt requested. A party's address shall
be as follows or as set forth in a written Notice to the other party:
Landlord: Jonic Investments, LLC
219 East White Street
LEASE AGREEMENT PAGE 5
Anna, Texas 75409
Tenant: City Manager
City of Anna, Texas
111 N. Powell Parkway
Anna, Texas 75409
With a copy to:
and: Clark McCoy
Wolfe, Tidwell & McCoy, LLP
2591 Dallas Parkway, Suite 300
Frisco, Texas 75034
Fax: 972-712-3540
(b) Entire Agreement. This Lease embodies the entire ageement and understanding between the parties
as to the lease of the Leased Premises by Tenant and supersedes all prior negotiations, agreements and
understandings pertaining to such lease. Any provision of this Lease may be modified, waived or discharged only by
an instrument in writing signed by the party against which enforcement of such modification, waiver or discharge is
sought. This Lease is not intended to be nor shall it be construed as a service contract or contract for the sale of
goods by Landlor to Tenant. Tenant does not by entering into this Lease waive any immunities it may have under
common law or statute.
(c) Commission. Tenant and Landlord hereby represent to each other that neither has entered into any
agreement or understanding that would give rise to a real estate commission being owed in connection with this
Lease, and each of Landlord and Tenant shall indemnify and hold the other harmless against any commission,
payment, interest or participation claimed on account of this Lease with any party under any alleged agreement or
understanding entered into on that party's behalf with the person or entity claiming the commission, payment,
interest or participation.
(d) Force Majeure. Each party shall be excused from performing an obligation or undertaking provided
for in this Lease for so long as such performance is prevented, delayed, retarded or hindered by an Act of God, fire,
earthquake, flood, explosion, action of the elements, war, invasion, insurrection, riot, mob violence, sabotage, strike,
lockout, action of labor unions, requisitions, laws, or orders of government or civil or military authorities.
(e) Surrender. Upon the expiration of the Term or earlier termination of this Lease, Tenant shall
surrender the Leased Premises to Landlord. Tenant shall remove all Personal Property, which are not fixtures (other
than trade fixtures installed by Tenant, which Tenant may remove. All other installations or improvements,
including all infrastructure, structures, buildings, HVAC equipment, paneling, partitions, railings, mezzanine floors,
and galleries made by either party shall be and become upon installation, the property of Landlord and shall be
surrendered with the Leased Premises at the expiration or termination of this Lease unless Landlord notifies Tenant
to the contrary in writing, in which event Tenant may remove such property at its expense. Any property not
promptly removed by Tenant under the provisions of this subparagraph may, at Landlord's option, be deemed to
have been abandoned by Tenant and may be retained by Landlord without any claim by Tenant. Tenant shall in any
event repair any damage to the Leased Premises caused by Tenant's removal of any property.
(f) Applicable Law, Construction. The laws of the State of Texas shall govern the validity, performance
and enforcement of this Lease. The invalidity or unenforceabiiity of any provision of this Lease shall not affect or
impair any other provision. If any provision of this Lease is capable of two constructions, one of which would render
the provision invalid and the other of which would make the provision valid, the provision shall have the meaning
which renders it valid. The submission of this document for examination does not constitute an offer to lease, this
document being effective only upon the conditions stated herein.
LEASE AGREEMENT PAGE 6
Lease.
(g) Time of the Essence. Time is of the essence with respect to each provision, term and covenant of this
(h) Capt ons. The captions are for convenience and do not limit or define the provisions of this Lease.
(i) Gender, Number. Whenever the sense of this Lease requires it, the use of % 1 singular number shall
be deemed to include the plural, (2) the masculine gender shall be deemed to include the feminine or neuter gender,
and (3) the neuter gender shall be deemed to include the masculine and feminine gender.
(j) Counterparts. This Lease may be executed in multiple counterparts, each of which shall be an
original, but all of which shall constitute one instrument.
(k) Contract Interpretation. This Lease is the result of negotiation between the parties, and shall, in the
event of any dispute over the meaning or application of any portion thereof, be interpreted fairly and reasonably, and
not to be more strictly construed against one party than another, regardless of which party originally drafted the
language in dispute.
(1) No Joint Venture. It is acknowledged and agreed by the parties that the terms hereof are not intended
to and shall not be deemed to create a partnership or joint venture among the parties.
(m) Bindin Eg ffect. All provisions of this Lease shall be binding upon and inure to the benefit of the
parties and their respective successors and permitted assigns.
LANDLORD:
JONIC INVESTMENTS//, LLC
By: Jhti lQ?QXh k
Jon f- endricks, its Managing Member
STATE OF TEXAS §
COUNTY OF COLLIN §
Before me, the undersigned notary public, on the J41L day of , 2018, personally appeared
Jon Hendricks known to me (or proved to me) to be the person whose nitrk is subscribed to the foregoing
instrument and acknowledged to me that he executed the same in his capacity as Managing Member and on behalf
of Jonic Investments, LLC.
t lic, Sate of Texas
TENANT
THE CITY OF ANNA, TEXAS
Printed Name: 00 tau if IG -r
Title:G G, /y�li�9�IL
Date: �/6!51 -"�o
STATE OF TEXAS
COUNTY OF COLLIN
Tana Ross
My Commission Cxpires
06J011?_021
ID No. 126915695
LEASE AGREEMENT PAGE 7
Before me, the undersigned notary public, on the .7day of , 2018, personally appeared
AAU,4ta known to me (or proved to me) to be the erson whose name is subscribed to the
foregoing instrument and acknowledged to me that he executed the same in his capacity as and on
behalf of C[�T,F
ary Publ' , State of Texas
�'6 Tana Ross
My Commission GxOs
if
06/01/2021
ID No. 126916696
LEASE AGREEMENT PAGE 8
EXHIBIT 1
DESCRIPTION OF LEASED PREMISES
Lot 1, Btock One
Anna City Hall Addition
CONTRACT FOR SALE AND LEASEBACK OF REAL PROPERTY
This Contract for Sale and Leaseback of Real Property (this "Agreement") is made on the I C� day of
2018 by Jonic Investments, LLC, a Texas limited liability company located at 219 East White
Street, M la, Texas 75409 ("Jonic"), and the City of Anna, Texas, a home -rule municipality located at I I I N. Powell
Parkway, Anna, Texas 75409 (the "City").
Recitals
Jonic is the owner of real property located in the Anna Original Donation, Collin County, and includes Lots 1, 2, 3, 4,
5 & 6 of Block 3 of said Donation and a portion of formally abutting abandoned 601 Street (collectively, the "Jonic
Property"), which is more particularly described as follows in the Jonic Survey referenced in Section III of this
Agreement.
Jonic desires to sell and Purchaser desires to purchase the Jonic Property in fee simple on the terms stated below, with
conveyance to be made by general warranty deed.
The City is the owner of real property located at 111 N. Powell St., Anna, Collin County, Texas (the "City Property"),
which is more particularly described in the City Survey referenced in Section III of this Agreement.
The City desires to sell and Jonic desires to purchase the City Property in fee simple on the terms stated below, with
conveyance to be made by general warranty deed.
The City and Jonic desire that the City lease and occupy the City Property (the "Leaseback") for a certain period of
time after Jonic purchases the City Property on the terms stated below.
During the term of the Leaseback, the City intends to construct municipal facilities (the "City Improvements") on the
Jonic Properly and move to and occupy said facilities before termination of the Leaseback.
Jonic is prepared to allow for a nominal lease rate during the term of the Leaseback provided that the City allow the
price of the City Property to be reduced by an amount that represents a 2.1%interest rate compounded annually for
three years as set forth in Section I of this Agreement.
The effective date of this Agreement is the date first stated above (the "Effective Date").
Therefore, Purchaser and Seller contract as follows;
Section I.
Purchase Price
The purchase price of the Jonic Property is $102.978 (the "Jonic Price").
The purchase price of the City Property is $294,735, which is the agreed upon market value of $315,000 minus
$20,265, which represents three years of interest compounded annually on the amount of $315,000 at the rate of 2.1
the "City Price").
Section H.
Terms of Payment
On the execution of this Agreement, the City or Jonic may deliver a copy of same to Red River Title, at 805 W. White
St. Ste 300, Alma, Collin County, Texas (the "Title Company").
At closing, Jonic will pay the City Price to the City with the passing of title of the City Property to Jonic as specified
in this Agreement.
At closing, the City will pay the Jonic Price to Jonic with the passing of title of the Jonic Property to the City as
CONTRACT FOR SALE AND LEASEBACK OF REAL PROPERTY PAGE 1
specified in this Agreement.
The payments referenced above must be in the form of a certified, cashier's, or official bank check.
Section III.
Surveys
Not later than 30 days after the execution of this Agreement, Jonic will, at is sole cost, furnish the City and the Title
Company with an updated survey of the Jonic Property.
Not later than 30 days after the execution of this Agreement, the City, at its sole cost, will furnish Jonic and the Title
Company with an updated survey of the City Property.
The surveys referenced in this section shall be current on -the -ground surveys that substantially comply with the
requirements of a Category IA, Condition I or II (as applicable) survey in the Manual of Practice for Land Surveying
in the State of Texas promulgated by the Texas Board of Professional Land Surveying, as amended, and shall be
adequate to enable the Title Company to delete the survey exception in the Title Policy (except for "shortages in
area").
Section IV.
Titles and Title Investigation
Title Commitments. Within 15 days of receipt of the Jonic Survey and the City Survey, the title officer shall have
examined the abstracts covering the Jonic Property and the City Property and shall have furnished: (1) Jonic with a
Title Commitment for title to the City Property and legible copies of the instruments referenced in said Title
Commitment (collectively, the "Jonic Commitment"); and (2) the City with a Title Commitment for title to the City
Property and legible copies of the instruments referenced in said Title Commitment (collectively, the "City
Commitment"). "Title Commitment" means a Commitment for Issuance of an Title Policy, stating the condition of
title to the Property. The "effective date" stated in the Title Commitment must be after the Effective Date of this
Agreement. "Title Policy" means an Owner Policy of Title Insurance issued by Title Company, in conformity with
the last Title Commitment delivered to and approved by the respective parties to this Agreement. Jonic shall pay all
costs associated with any Title Company issued to Jonic under this Agreement. The City shall pay all costs associated
with any Title Company issued to the City under this Agreement.
Title Objections, Jonic. Within 15 days of the date that Jonic receives the Jonic Commitment ("Title Objection
Deadline") Jonic shall have reviewed the Jonic Commitment and the City Survey and notify the City and Title
Company of its objections to any of them ("Title Objections"). Jonic will be deemed to have approved all matters
reflected by the Jonic Commitment to which Jonic has made no Jonic Title Objection by the Title Objection Deadline.
The matters that Jonic either approves or is deemed to have approved are "Permitted Exceptions." If Jonic notifies the
City of any Title Objections, the City has fifteen (15) days from receipt of Jonic's notice to notify Jonic whether the
City agrees to cure the Title Objections before closing ("Cure Notice"). If the City does not timely give its Cure Notice
or timely gives its Cure Notice but does not agree to cure all the Title Objections before closing, Jonic may, within
five days after the deadline for the giving of the City's Cure Notice, notify the City that either this Agreement is
terminated or Jonic will proceed to close, subject to the City's obligations to resolve the items that are listed on
Schedule C of the Jonic Commitment which are the City's responsibility to resolve, remove all such liens, remove all
exceptions that arise by, through, or under the City after the Effective Date of this Agreement, and cure the Title
Objections that the City has agreed to cure.
Title Objections, the City. Within 15 days of the date that the City receives the City Commitment ("Title Objection
Deadline") the City shall have reviewed the City Commitment and City Survey and notify Jonic and Title Company
of its objections to any of them ("City Title Objections"). The City will be deemed to have approved all matters
reflected by the City Commitment to which the City has made no Title Objection by the Title Objection Deadline.
The matters that the City either approves or is deemed to have approved are "Permitted Exceptions." If the City notifies
Jonic of any Title Objections, Jonic has fifteen (15) days from receipt of the Title Objections to notify the City whether
CONTRACT FOR SALE AND LEASEBACK OF REAL PROPERTY PAGE 2
Jonic agrees to cure the Title Objections before closing ("Cure Notice"). If the City does not timely give its Cure
Notice or timely gives its Cure Notice but does not agree to cure all the Title Objections before closing, the City may,
within five days after the deadline for the giving of the City's Cure Notice, notify Jonic that either this Agreement is
terminated or the City will proceed to close, subject to Jonic's obligations to resolve the items that are listed on
Schedule C of the City Commitment which are Jonic's responsibility to resolve, remove all such liens, remove all
exceptions that arise by, through, or under Jonic after the Effective Date of this Agreement, and cure the Title
Objections that Jonic has agreed to cure.
Section V.
Leaseback
Simultaneously with the close and transfer of title of the Jonic Property to the City and the City Property to Jonic,
Jonic and the City shall execute and deliver the Leaseback of the City Property with Jonic as lessor and the City as
lessee, in the form and content set forth in Exhibit A attached to this Agreement. The parties agree that the Leaseback
constitutes a necessary element of the consideration for this Agreement and is a condition precedent for the transfer
of title of the City Property to Jonic under this Agreement. The Leaseback shall terminate on or before the earlier of
(1) the date that the City provides written termination notice confirming that it no longer occupies the City Property;
or (2) January 1, 2021.
Section VI.
Closing of Title
The sale is to be closed on or before the earlier o£ (1) 30 days after date of the City's delivery of a notice to proceed
to the construction contractor that is selected to perform construction of the City Improvements on the Jonic Property;
or (2) January 1, 2019. Said notice to proceed shall specifically prohibit any construction to commence for at least 30
days after the date of said notice to proceed. Under no circumstances shall the City begin construction of the City
Improvements on the Jonic Property until transfer of title of the Jonic Property to the City has occurred. Jonic, at
Jonic's sole discretion, may provide a written waiver to the City allowing said construction to begin in advance of
closing.
Section VII.
Miscellaneous
1. Notices. Any notice required by or permitted under this Agreement must be in writing. Any notice
required by this Agreement will be deemed to be delivered (whether actually received or not) when deposited with
the United States Postal Service, postage prepaid, certified mail, return receipt requested, and addressed to the intended
recipient at the address shown in this Agreement. Notice may also be given by regular mail, personal delivery, courier
delivery and will be effective when actually received. Any address for notice may be changed by written notice
delivered as provided herein.
To the City:
City Manager
City of Anna, Texas
I I I N. Powell Parkway
Anna, Texas 75409
With a copy to:
Clark McCoy
Wolfe, Tidwell &McCoy, LLP
2591 Dallas Parkway, Suite 300
Frisco, Texas 75034
To Jonic:
Jonic Investments, LLC
CONTRACT FOR SALE AND LEASEBACK OF REAL PROPERTY PAGE 3
219 East White Street
Anna, Texas 75409
2. Entire Contract. This Agreement, together with its exhibits, and any documents required to be
delivered at closing constitute the entire agreement of the parties concerning the purchase and sale of the Jonic
Property and the sale, purchase, and Leaseback of the City Property. There are no oral representations, warranties,
agreements, or promises pertaining to the subject of this Agreement not incorporated in writing in this Agreement.
3. Amendment. This Agreement may be amended only by an instrument in writing signed by the
parties.
4. Assignment. This Agreement shall not be assigned by either party without the other parties written
consent for assignment to a specific buyer.
5. Survival. The obligations of this Agreement that cannot be performed before termination of this
Agreement or before closing will survive termination of this Agreement or closing, and the legal doctrine of merger
will not apply to these matters.
6. Choice of Law; Venue; Alternative Dispute Resolution. This Agreement will be construed under
the laws of the state of Texas, without regard to choice -of -law rules of any jurisdiction. Venue is in Collin County,
Texas. Time permitting, the parties will submit in good faith to an alternative dispute resolution process before filing
a suit concerning this Agreement. The parties shall not under any circumstances be required to submit any dispute to
arbitration.
7. Waiver of Default. It is not a waiver of default if the nondefaulting party fails to declare
immediately a default or delays taking any action with respect to the default.
Third -Party Beneficiaries. There are no third -party beneficiaries of this Agreement.
9. Severability. The provisions of this Agreement are severable. If a court of competent jurisdiction
finds that any provision of this Agreement is unenforceable, the remaining provisions will remain in effect without
the unenforceable parts.
10. Ambiguities Not to Be Construed against Party Who Drafted Contract. The rule of
construction that ambiguities in a document will be construed against the party who drafted it will not be applied in
interpreting this Agreement.
11. No Special Relationship. The parties' relationship is an ordinary commercial relationship, and
they do not intend to create the relationship of principal and agent, partnership, joint venture, or any other special
relationship.
12. Counterparts. If this Agreement is executed in multiple counterparts, all counterparts taken
together will constitute this Agreement.
13. Confidentiality. The parties will keep confidential this Agreement, this transaction, and all
information learned in the course of this transaction, except to the extent disclosure is required by law or court order
or to enable third parties to advise or assist Buyer to investigate title or either party to close this transaction.
14 Attorneys' Fees. The prevailing party in any proceeding brought to enforce this Agreement, or
brought relating to the transaction contemplated by this Agreement, will be entitled to recover, from the non -prevailing
party, court costs, reasonable attorneysfees and all other reasonable related expenses.
15. Contract as Offer. The execution of this Agreement by the first party to do so constitutes an offer
to purchase or sell the Property. If the other party does not accept that offer by signing this Agreement and delivering
a fully executed copy to the first party within ten (10) days after the date this Agreement is executed by the first party,
then the first party may withdraw that offer by delivering a written notice to the other party at any time before the
CONTRACT FOR SALE AND LEASEBACK OF REAL PROPERTY PAGE 4
other party accepts that offer, m which case the Earnest Money, if any, will be returned to Buyer.
In witness of their agreement, the parties have executed this Agreement on the dates) shown below.
CONTRACT FOR SALE AND LEASEBACK OF REAL PROPERTY PAGE 5
THE CITY OF ANNA, TEXAS
By: ,* 10100
Printed Name:
Title: e,e9g
Date:
STATE OF TEXAS §
COUNTY OF COLLIN §
Before me, the undersigned notary public, on the jE� day of IL /� 2018, personally appeared
41 cr l�� Sri 4j k�e.known to me (or proved to me) to be the person whose name is subscribed to the
foregoing instrument and acknowledged to me that he executed the same in his capacity asA6yrjj,aiiand on
behalf of C 17�1 D ( Ant,%4*
_ Public, State of Texas
JONIC INVESTMENTS, LLC
"� Tana Ross
f � � +(r 1 My Commission Ex{�iros
By' r.L-l/�b4�--- �� i 06101/2021
Jon lqendricks, its Managing Member ID No. 126915695
STATE OF TEXAS
COUNTY OF COLLIN
Before me, the undersigned notary public, on the ��day of�/j��, 2018, personally appeared Jon
Hendricks known to me (or proved to me) to be the person whose name is subscribed to the foregoing instrument and
acknowledged to me that he executed the same in his capacity as Managing Member and on behalf of Jonic
Investments, LLC.
Tana Ross e r�
AAy Commission Exonac ubli , State of Texas
11
06/01/2021
ID No.126916695
Title Company Receipt
Title Company acknowledges receipt of Earnest Money in the amount of $0.00
copy of this Agreement executed by both Buyer and Seller.
[name of title company]
BY:��5 I
Printed Name: `
Title: c7SC Cch�J
Date: Cl. , 2018.
and a
CONTRACT FOR SALE AND LEASEBACK OF REAL PROPERTY PAGE 6
This Contract for Sale and Leaseback of Real Property (this "Agreement") is made on the day of
, 2018 by Jonic Investments, LLC, a Texas limited liability company located at 219 East White
Street, Anna, Texas 75409 ("Jonic"), and the City of Anna, Texas, a home -rule municipality located at 111 N. Powell
Parkway, Anna, Texas 75409 (the "City").
Jonic is the owner of real property located in the Anna Original Donation, Collin County, and includes Lots 1, 2, 3, 4,
5 & 6 of Block 3 of said Donation and a portion of formally abutting abandoned 601 Street (collectively, the "Jonc
Property"), which is more particularly described as follows in the Jonic Survey referenced in Section III of this
Agreement.
Jonic desires to sell and Purchaser desires to purchase the Jonic Property in fee simple on the terms stated Uelow, with
conveyance to be made by general warranty deed.
The City is the owner of real property located at 111 N. Powell St., Anna, Collin County, Texas (the "City Property"),
which is more particularly described in the City Survey referenced in Section III of this Agreement.
The City desires to sell and Jonic desires to purchase the City Property in fee simple on the terms stated below, with
conveyance to be made by general warranty deed.
The City and Jonic desire that the City lease and occupy the City Property (the "Leaseback") for a certain period of
time after Jonic purchases the City Property on the terms stated below.
During the term of the Leaseback, the City intends to construct municipal facilities (the "City Improvements") on the
Jonic Property and move to and occupy said facilities before termination of the Leaseback.
Jonic is prepared to allow for a nomnlal lease rate during the term of the Leaseback provided that the City allow the
price of the City Property to be reduced by an amount that represents a 2.1%interest rate compounded annually for
ttuee years as set forth in Section I of this Agreement.
The effective date of this Agreement is the date first stated above (the "Effective Date").
Therefore, Purchaser and Seller contract as follows:
Section I.
Purchase Price
The purchase price of the Jonic Property is $1Q24978 (the "Jonic Price").
The purchase price of the City Property is $294.735, which is the agreed upon market value of $315,000 minus
$20,265, which represents three years of interest compounded annually on the amount of $315,000 at the rate of 2.1
the "City Price").
Section H.
Terms of Payment
On the execution of this Agreement, the City or Jonic may deliver a copy of same to Red River Title, at 805 W. White
St. Ste 300, Alma, Collin County, Texas (the "Title Company").
At closing, Jonic will pay the City Price to the City with the passing of title of the City Property to Jonic as specified
in this Agreement.
At closing, the City will pay the Jonic Price to Jonic with the passing of title of the Jonic Property to the City as
specified m this Agreement.
The payments referenced above must be in the form of a certified, cashier's, or official bank check.
Not later than 30 days after the execution of this Agreement, Jonic will, at is sole cost, furnish the City and the Title
Company with an updated survey of the Jonic Property.
Not later than 30 days after the execution of this Agreement, the City, at its sole cost, will furnish Jonic and the Title
Company with an updated survey of the City Property.
The surveys referenced ui this section shall be current on -the -ground surveys that substantially comply with the
requirements of a Category 1 A, Condition I or II (as applicable) survey in the Manual of Practice for Land Surveying
in the State of Texas promulgated by the Texas Board of Professional Land Surveying, as amended, and shall be
adequate to enable the Title Company to delete the survey exception in the Title Policy (except for "shortages in
area").
Section I�1,
Titles and Title Investigation
Title Commitments. Within 15 days of receipt of the Jonic Survey and the City Survey, the title officer shall have
examined the abstracts covering the Jonic Property and the City Property and shall have furnished: (1) Jonic with a
Title Commitment for title to the City Property and legible copies of the instruments referenced in said Title
Commitment (collectively, the "Jonic Commitment"); and (2) the City with a Title Commitment for title to the City
Property and legible copies of the instruments referenced in said Title Commitment (collectively, the "City
Commitment"). "Title Commitment" means a Commitment for Issuance of an Title Policy, stating the condition of
title to the Property. The "effective date" stated in the Title Commitment must be after the Effective Date of this
Agreement. "Title Policy" means an Owner Policy of Title Insurance issued by Title Company, in conformity with
the last Title Commitment delivered to and approved by the respective parties to this Agreement. Jonic shall pay all
costs associated with any Title Company issued to Jonic under this Agreement. The City shall pay all costs associated
with any Title Company issued to the City under this Agreement.
Title Objections, Jonic. Within 15 days of the date that Jonic receives the Jonic Commitment ("Title Objection
Deadline") Jonic shall have reviewed the Jonic Commitment and the City Survey and notify the City and Title
Company of its objections to any of them ("Title Objections"). Jonic will be deemed to have approved all matters
reflected by the Jonic Commitment to which Jonic has made no Jonic Title Objection by the Title Objection Deadline.
The matters that Jonic either approves or is deemed to have approved are "Permitted Exceptions." If Jonic notifies the
City of any Title Objections, the City has fifteen (15) days from receipt of Jonic's notice to notify Jonic whether the
City agrees to cure the Title Objections before closing ("Cure Notice"). If the City does not timely give its Cure Notice
or timely gives its Cure Notice but does not agree to cure all the Title Objections before closing, Jonic may, within
five days after the deadline for the giving of the City's Cure Notice, notify the City that either this Agreement is
terminated or Jonic will proceed to close, subject to the City's obligations to resolve the items that are listed on
Schedule C of the Jonic Commitment which are the City's responsibility to resolve, remove all such liens, remove all
exceptions that arise by, through, or under the City after the Effective Date of this Agreement, and cure the Title
Objections that the City has agreed to cure.
Title Objections, the City. Within 15 days of the date that the City receives the City Commitment ("Title Objection
Deadline") the City shall have reviewed the City Commitment and City Survey and notify Jonic and Title Company
of its objections to any of them ("City Title Objections"). The City will be deemed to have approved all matters
reflected by the City Commitment to which the City has made no Title Objection by the Title Objection Deadline.
The matters that the City either approves or is deemed to have approved are "Permitted Exceptions." If the City notifies
Jonic of any Title Objections, Jonic has fifteen (15) days from receipt ofthe Title Objections to notify the City whether
Jonic agrees to cure the Title Objections before closing ("Cure Notice"). If the City does not timely give its Cure
Notice or timely gives its Cure Notice but does not agree to cure all the Title Objections before closing, the City may,
within five days after the deadline for the giving of the City's Cure Notice, notify Jonic that either this Agreement is
terminated or the City will proceed to close, subject to Jon ic's obligations to resolve the items that are listed on
Schedule C of the City Commitment which are Jonic's responsibility to resolve, remove all such liens, remove all
exceptions that arise by, through, or under Jonic after the Effective Date of this Agreement, and cure the Title
Objections that Jonic has agreed to cure.
Section V.
Leaseback
Simultaneously with the close and transfer of title of the Jonic Property to the City and the City Property to Jonic,
Jonic and the City shall execute and deliver the Leaseback of the City Property with Jonic as lessor and the City as
lessee, in the form and content set forth in Exhibit A attached to this Agreement. The parties agree that the Leaseback
constitutes a necessary element of the consideration for this Agreement and is a condition precedent for the transfer
of title of the City Property to Jonic under this Agreement. The Leaseback shall terminate on or before the earlier of:
(1) the date that the City provides written termination notice confirming that it no longer occupies the City Property;
or (2) January 1, 2021.
Section DTI.
Closing of Title
The sale is to Ue closed on or Uefore the earlier of: (1) 30 days after date of the City's delivery of a notice to proceed
to the construction contractor that is selected to perform construction of the City Improvements on the Jonic Property;
or (2) January 1, 2019. Said notice to proceed shall specifically prohibit any construction to commence for at least 30
days after the date of said notice to proceed. Under no circumstances shall the City begin construction of the City
Improvements on the Jonic Property until transfer of title of the Jonic Property to the City has occurred. Jonic, at
Jonic's sole discretion, may provide a written waiver to the City allowing said construction to begin in advance of
closing.
Section VII.
1Vli0cella12eons
1. hlotices. Any notice required Uy or permitted under this Agreement must be in writing. Any notice
required by this Agreement will be deemed to be delivered (whether actually received or not) when deposited with
the United States Postal Service, postage prepaid, certified mail, return receipt requested, and addressed to the intended
recipient at the address shown in this Agreement. Notice may also be given by regular mail, personal delivery, courier
delivery and will be effective when actually received. Any address for notice may be changed by written notice
delivered as provided herein.
To the City:
City Manager
City of Anna, Texas
I I I N. Powell Parkway
Anna, Texas 75409
With a copy to:
Clark McCoy
Wolfe, Tidwell &McCoy, LLP
2591 Dallas Parkway, Suite 300
Frisco, Texas 75034
To Jonic:
Jonic Investments, LLC
219 East White Street
Anna, Texas 75409
2. Fntire Contract. This Agreement, together with its exhibits, and any documents required to be
delivered at closing constitute the entire agreement of the parties concerning the purchase and sale of the Jonic
Property and the sale, purchase, and Leaseback of the City Property. There are no oral representations, warranties,
agreements, or promises pertaining to the subject of this Agreement not incorporated in writing in this Agreement.
3. Amendment. This Agreement may be amended only by an instrument ur writnig signed by the
parties.
4. Assignment. This Agreement shall not be assigned by either party without the other parties written
consent for assignment to a specific buyer.
5. Survival. The obligations of this Agreement that carmot be performed before termination of this
Agreement or before closing will survive termination of this Agreement or closing, and the legal doctrine of merger
All not apply to these matters.
6. Choice of Law; Venue; Alternative Dispute Resolution. This Agreement will be construed under
the laws of the state of Texas, without regard to choice -of -law rules of any jurisdiction. Venue is in Collin County,
Texas. Time permitting, the parties will submit in good faith to an alternative dispute resolution process before filing
a suit concerning this Agreement. The parties shall not under any circumstances be required to submit any dispute to
arbitration.
7. Waiver of Default. It is not a waiver of default if the nondefaulting party fails to declare
hnmediately a default or delays taking any action with respect to the default.
�. l�To Third -Party Beneficiaries. There are no third -party beneficiaries of this Agreement.
9. Severability. The provisions of this Agreement are severable. If a court of competent jurisdiction
fords that any provision of this Agreement is unenforceable, the remaining provisions will remain in effect without
the unenforceable parts.
10. Ambiguities hiot to Be Construed against Party Who Drafted Contract. The rule of
construction that ambiguities in a document will be construed against the party who drafted it will not be applied in
interpreting this Agreement.
11. No Special Relationship. The parties' relationship is an ordinary commercial relationship, and
they do not intend to create the relationship of principal and agent, partnership, joint venture, or any other special
relationship.
12. Counterparts. If this Agreement is executed in multiple counterparts, all counterparts taken
together will constitute this Agreement.
13. Confidentiality. The parties will keep confidential this Agreement, this transaction, and all
information learned ui the course of this transaction, except to the extent disclosure is required by law or court order
or to enable third parties to advise or assist Buyer to investigate title or either party to close this transaction.
14 Attorneys' Fees. The prevailing party in any proceeding brought to enforce this Agreement, or
brought relating to the transaction contemplated by this Agreement, will be entitled to recover, from the non -prevailing
party, court costs, reasonable attorneysfees and all other reasonable related expenses.
15. Contract as ®ffer. The execution of this Agreement by the first party to do so constitutes an offer
to purchase or sell the Property. If the other party does not accept that offer by signing this Agreement and delivering
a fully executed copy to the first party wn ten (10) days after the date this Agreement is executed by the first party,
then the first party may withdraw that offer by delivering a written notice to the other party at any time before the
other party accepts that offer, ni which case the Earnest Money, if any, will be retwmed to Buyer.
In witness of their agreement, the parties have executed this Agreement on the dates) shown below.
THE CITY OF ANNA, TEXAS
By:�i��-,
Printed Name: 0 a qAc—, 5cljt,ag,1X,
Title:
Date:
STATE OF TEXAS
COUNTY OF COLLIN
Before me, the undersigned notary public, on thej0 day of , 2018, personally appeared
/i1�121�F Sc i}u/AJk�known to me (or proved to me) to be the person whose name is subscribed to the
foregoing instrument and acknowledged to me that he executed the same in his capacity as C" ,yla�jj� „and on
behalf of e� D f /1u
, No Pub ic, State of Texas
JONIC INVESTMENTS, LLC '�+'�`"LG`�'
' 7ana foss
�,%� _�� � My Commission E��pises
By: ��'�146,1L�d�1J 08/01/2021
Jon Ilendricks, its Managing Member D No. 126915695
STATE OF TEXAS
COUNTY OF COLLIN
Before me, the undersigned notary public, on the ��day of � 2018, personally appeared Jon
Hendricks known to me (or proved to me) to be the person whose name is subscribed to the foregoing instrument and
acknowledged to me that he executed the same in his capacity as Managing Member and on behalf of Jonic
Isivestments, LLC.
iana Ross p ��
way Commission e� r� ubli , State of Texas
06/01/2021
@ Not126916695
Title Company Receipt
Title Company acknowledges receipt of Earnest Money in the amount of $0.00
copy of this Agreement executed by both Buyer and Seller.
[name of title cornpan)p]
BY:
Printed Name:
Title:
Date:
and a
CONTRACT FOR SALE AND LEASEBACK OF REAL PROPERTY PAGE 6
ffifta4 iR
TIIIS LEASE AGREEI?/IEl®I T (this "Lease") is entered into by and between ionic Investments, LLC, a
Texas limited liability company ("Landlord") and the City of Anna, a Texas home -rule municipality ("Tenant"). For
valuable consideration the parties agree and act as follows:
1. Definitions. The following terms have the meanings set forth below:
(a) Effective Date. The effective date of this Lease is
(b) Leased Premises. The exclusive use of a 3,150 square foot building and related improvements, the
approximately 1.1 S acre tract of land upon which said building and improvements are situated and the parking lot
thereon (collectively, the "Premises") located in the City of Anna, Collin County, Texas, said tract of land being
described in Exhibit 1 attached hereto, together with any and all appurtenances, easements and privileges pertaining
to the Premises.
(c) Lease Tertn. The lease team shall begin upon conveyance of the Premises from Tenant to Landlord
under that certain Contract for Sale and Leaseback of Real Property ("Conveyance Agreement"). The lease term
shall expire on the earlier of: (1) the date that the City provides written termination notice confirming that it no
longer occupies the City Property; or (2) January 1, 2021. The City may exercise the right to continue to extend this
Lease after January 1, 2021 on a monthAo-month basis with 30 days' notice of termination at the rate set forth in
Section 3.(a)(2), below.
(d) Permitees. All officials, officers, directors, employees, agents, contractors, customers, visitors and
invitees of Tenant at the Leased Premises.
(e) Permitted Exce to ions. The conditions, restrictions, easements and encumbrances, if any, affecting
title to the Leased Premises set forth in the owner's title of policy insurance obtained by Landlord pursuant to the
Conveyance Agreement.
(f) City Council. The City Council of the City of Anna, Texas.
(a) Demise and Grant of Leased Premises. Landlord hereby leases to Tenant and Tenant accepts fiom
Landlord under the terms, provisions and conditions of this Lease the Leased Premises commencing on the Effective
Date hereof and continuing until the expiration or earlier termination of the Term as hereinafter provided.
(b) Term. The term of the Lease is as set forth in 1.(c), above.
(c) Improvements. Any and all structures and other improvements existing on the Leased Premises at
the beginning of the Term or thereafter installed or constructed.
(d) Quiet Enjoyment. Upon Tenant's payment of all rent hereunder as same becomes due and
observance and performance of the covenants, terms and conditions to be observed and performed by Tenant
pursuant to this Lease, Tenant shall have throughout the Term, peaceful, quiet and undisturbed use and possession of
the Leased Premises and all rights and privileges appertaining thereto, subject to the terms, conditions and
provisions of this Lease.
(e) Landlord's Title Subordination. Landlord covenants, represents and warrants to Tenant as follows:
(1) Title. Landlord hereby represents and warrants that it owns good and indefeasible fee simple
title in and to the Leased Premises, subject only to the Permitted Exceptions, and has full right and authority to make
this Lease.
(2) No Actions. There are no actions, suits or proceedings pending or to the best of Landlord's
knowledge, threatened against Landlord and affecting any portion of the Leased Premises, at law or in equity, or
before any federal, state, municipal or other governmental court, department, commission, board, bureau, agency or
instrumentality, domestic or foreign.
(3) Authori .The execution and consummation of this Lease by Landlord has been duly
authorized and does not result in a breach of any of the terms or provisions of, or constitute a default under, any
indenture, agreement, instrument or obligation to which Landlord is a party or by which the Leased Premises or any
portion thereof is bound. However, notwithstanding the foregoing or any term or provision of this Lease, and all
rights and obligations of Landlord and Tenant hereunder are subject to and shall not be effective unless and until
there has been formal approval by the City Council of this Lease at a duly noticed public meeting.
(f) Condition of Leased Premises. TENANT UNDERSTANDS AND ACKNOWLEDGES ITS
ACCEPTANCE OF THE LEASED PREMISES IS WITHOUT RECOURSE, REPRESENTATION OR
WARRANTY (EXCEPT AS SPECIFICALLY SET OUT HEREIN) OF ANY KIND, EXPRESS, IMPLIED OR
STATUTORY AND LANDLORD IS LEASING THE LEASED PREMISES AS IS, WHERE IS, AND WITH ALL
FAULTS, AND WITHOUT REPRESENTATIONS OR WARRANTY (ALL OF WHICH LANDLORD HEREBY
)ISCLAIMS) AS TO FITNESS FOR ANY PARTICULAR PURPOSE, MERCHANTABILITY, DESIGN,
QUALITY, LAYOUT, FOOTAGE, PHYSICAL CONDITION, OPERATION, COMPLIANCE WITH
SPECIFICATIONS, ABSENCE OF LATENT DEFECTS, OR COMPLIANCE WITH LAWS AND
REGULATIONS. TENANT HEREBY ASSUMES ALL RISK AND LIABILITY (AND AGREES THAT
LANDLORD SHALL NOT BE LIABLE FOR ANY SPECIAL, DIRECT, INDIRECT, CONSEQUENTIAL, OR
OTHER DAMAGES) RESULTING OR ARISING FROM OR RELATING TO THE OCCUPANCY,
CONSTRUCTION, USE, CONDITION, LOCATION, MAINTENANCE, REPAIR, OR OPERATION OF THE
LEASED PREMISES, TENANT ACKNOWLEDGES THAT TENANT HAS INSPECTED THE LEASED
PREMISES AND ACCEPTS THE LEASED PREMISES "AS IS," "WHERE IS" AND "WITH ALL FAULTS."
3. Rent and Taxes. Tenant shall pay Landlord the following amounts:
(a) Rent.
(1) Tenant shall pay to Landlord as rent ("Rent") for the Leased Premises a single lump sum
payment of $10 annually, the receipt and sufficiency of which is hereby acknowledged.
(2) If the lease term is extended after January 1, 2021, the Rent shall increase to $1,000 per
month due on the fifth day of each month beginning January 5, 2021.
(b) Taxes. Tenant shall be liable to time pay or reimburse Landlord for any taxes that may become due
during the Term on a pro rata basis calculated as a percentage of the tax liability for the number of days in the
applicable tax year during which Tenant occupies the Property under this Lease. Either Landlord or Tenant may
dispute taxation or
(a) Delivery of Leased Premises. Landlord shall deliver exclusive possession of the Leased Premises to
Tenant upon the beginning of the Term, subject only to the provisions and terms of this Lease and the Permitted
Exceptions.
(b) Alterations and Improvements. With the exception of signs erected in conformance with applicable
laws and ordinances, and construction of Improvements as approved in writing by Landlord and, if required under
City ordinances) or the City Council, set An on one or more site plans submitted to and formally approved by the
City Council during a duly posted meeting, and constructed in accordance with construction plans submitted to and
approved in writing by the City or City staff, Tenant may not at any time construct, alter, change, and/or demolish
any signs or Improvements now or hereafter situated on the Leased Premises. If any such construction by Tenant is
at any time approved:
LEASE AGREEMENT PAGE 2
(1) All such work shall be performed in a good and workmanlike manner, in accordance with
accepted standards of engineering and architecture, if applicable, and in accordance with local, state and federal law,
including but not limited to the Americans with Disabilities Act;
(2) Such conshuction5 alteration, additions, changes or demolishment shall be in compliance
with all applicable building codes, zoning, rules, regulations and ordinances affecting construction of such
alterations, additions, and changes and shall be commenced only after Tenant has been duly granted all applicable
permits for same; and
(c) No Mechanic's Liens. Tenant shall not permit any mechanic's or rnaterialman's liens to be filed
against Landlord's interest in the Leased Premises arising out of the Tenant Improvements (unless the same are fully
bonded so as to cause same to be removed in accordance with applicable law), and Tenant shall indemnify, defend
(using counsel acceptable to Landlord in its reasonable discretion), and hold harmless Landlord from and against
any costs, liability or expense, including attorneys fees, attributable to any such liens. Tenant's obligations under
this paragraph 4(c) shall expressly survive the expiration or earlier termination of this Lease.
(d) Environmental. Tenan# will conduct its business in a lawful manner and will not make or permit any
unlawful use of the Leased Premises. Tenant will, at its own expense, promptly comply with all laws, regulations,
and ordinances affecting the Leased Premises and the cleanliness, safety, occupancy, and use thereof. TENANT
SHALL INDEMNIFY, DEFEND (USING COUNSEL ACCEPTABLE TO LANDLORD IN ITS REASONABLE
DISCRETION) AND HOLD HARMLESS LANDLORD FROM AND AGAINST ANY COST, LIABILITY OR
EXPENSE ARISING OUT OF OR ATTRIBUTABLE TO ANY CLAIMS, DEMANDS, CAUSES OF ACTION,
FINES, PENALTIES, LIABILITY OR EXPENSES (INCLUDING ATTORNEY FEES AND COURT COSTS)
ARISING OUT OF OR RELATED TO THE EXISTENCE, REMOVAL OR DISPOSAL OF ANY TOXIC OR
HAZARDOUS SUBSTANCES OR MATERIALS WITHIN OR UPON THE LEASED PREMISES CAUSED BY
TENANT, ITS EMPLOYEES, AGENTS OR REPRESENTATIVES DURING THE TERM OF THIS LEASE
FOLLOWING THE EFFECTIVE DATE. FOR PURPOSES HEREOF, THE PHRASE "TOXIC OR HAZARDOUS
SUBSTANCES OR MATERIALS" SHALL INCLUDE ITEMS COVERED BY THE COMPREHENSIVE
ENVIRONMENTAL RESPONSE, COMPENSATION AND LIABILITY ACT OF 19805 42 U.S.C. §§9601-
75(1986), AS AMENDED BY THE SUPERFUND AMENDMENT AND REAUTHORIZATION ACT, PUB, L.
NO.994993 100 STAT. 1613 (1986) ("CERCLA"), THE TOXIC SUBSTANCES CONTROL ACT, 15 U.S.C.
§2601 ET SEQ., THE CLEAN WATER ACT, 33 U.S.C. § 1251 ET SEQ., THE SAFE DRINKJNG WATER ACT,
42 U.S.C. §§300(f)-3000), AND OTHER FEDERAL, STATE AND LOCAL LAWS NOW OR HEREAFTER IN
EFFECT GOVERNING THE EXISTENCE, REMOVAL OR DISPOSAL OF TOXIC OR HAZARDOUS
SUBSTANCES OR MATERIALS. Tenant's obligations under this a�ragra hn 4(d) shall expressly survive the
expiration or earlier termination of this Lease.
(e) Runs. Tenant shall, at its sole cost and expense, perform all repairs and preventative maintenance
necessary to maintain the Leased Premises in good condition and repair, ordinary wear and tear excepted, and keep
the Leased Premises in compliance with applicable law throughout the Term. The foregoing shall not in any way
impair or limit Tenant's right to make alterations or additions to the Leased Premises as set forth in Paragraph 4(b)
above. Tenant's obligations under this paragraph 4(e) shall expressly survive the expiration or earlier termination of
this Lease.
(f) Tenant's Fixtures. Tenant may install in or upon the Leased Premises such trade fixtures and
equipment as Tenant deems desirable, provided that Tenant does so in accordance with a written plan demonshating
the size and configuration of such fixtures and equipment upon the Leased Premises. All of said items shall remain
Tenant's property whether or not affixed or attached to the Leased Premises. Tenant may remove such items fiom
the Leased Premises at any time during the Term. Nothing contained in this paragraph 4(f) shall diminish Tenant's
obligations to maintain the Leased Premises pursuant to paragraph 4(e).
(g) Platting, Site Plans, Approvals. Landlord and Tenant acknowledge that it may be necessary, from
time -to -time, for Landlord or Tenant to seek governmental approvals with respect to platting, zoning, site plans,
permitting and/or obtaining other permits in connection with its use and occupancy of the Leased Premises for the
LEASE AGI3EE1!'IEIVT PAGE 3
uses permitted hereby (collectively, "Approvals"). Landlord agrees to reasonably cooperate with Tenant with respect
to its obtaining the Approvals and to execute such documents as may be required of the owner of fee title to the
Leased Premises in order for Tenant to obtain the Approvals, provided that Landlord shall not incur any costs or
liabilities in connection therewith, and Landlord does not guarantee or make any representations with regard to
Tenant's ability to actually obtain the Approvals. Tenant expressly understands and agrees that approval by the City
Council of this Lease does not constitute the City Council's granting of an Approval and does not bind the City
Council to grant or approve any other Approvals.
5. Uties. Tenant shall at its own expense arrange with the appropriate utility suppliers for services to the
Leased Premises, pay all connection, meter and service charges and deposits required to connect utilities to the
Leased Premises, and pay such utility suppliers directly for such services. Landlord shall not pay any sum in
connection with utility installation or service on the Leased Premises.
(a) Tenant's Use. Except as prohibited or restricted by the Permitted Exceptions, Tenant may use the
Leased Premises for any lawful purpose, provided that such purpose is hi conformity with all applicable site plans,
zoning, and Approvals, and other restrictions set forth in this Lease and which may otherwise apply to the Leased
Premises.
(b) Assignment, Subletting. Tenant shall not assign all or any part of this Lease or sublet all or any part
of the Leased Premises without Landlord's written consent. In the case of any assignment or sublease permitted by
Landlord, Tenant shall not be released from liability.
7.Indemnifieatiou Insurance.
(a) Indemnification. INADDITION TO ANY OTHER PROVISIONS OF THIS LEASE, TENANT
SHALL INDEMNIFY, HOLD IIARIv11. ESS, AND, AT LANDLORD'S OPTION, DEFEND (USING COUNSEL
ACCEPTABLE TO LANDLORD IN ITS REASONABLE DISCRETION) LANDLORD AND ITS OFFICERS,
DIRECTORS, AGENTS AND EMPLOYEES (COLLECTIVELY, THE "INDEMNIFIED PARTIES") FROM
AND AGAINST ANY AND ALL LIABILITY, LIENS, CLAIMS, DEMANDS, DAMAGES, EXPENSES, FEES,
COSTS, REASONABLE ATTORNEY FEES AND LITIGATION COSTS, FINES, PENALTIES, SUITS,
PROCEEDINGS, ACTIONS AND CAUSES OF ACTION OF ANY AND EVERY KIND AND NATURE
ARISING OUT OF TENANT'S USE, OCCUPANCY, CONSTRUCTION, MANAGEMENT OR CONTROL OF
THE LEASED PREMISES, IMPROVEMENTS OR TENANT'S OPERATIONS, CONDUCT OR ACTIVITIES,
UNLESS AND TO THE EXTENT THE SAME IS DUE TO THE NEGLIGENCE, GROSS NEGLIGENCE, OR
INTENTIONAL ACTS OR OMISSIONS OF LANDLORD, ITS AGENTS, EMPLOYEES OR CONTRACTORS.
TENANT'S OBLIGATIONS UNDER THIS PARAGRAPH 7(a) SHALL SURVIVE THE EXPIRATION OR
EARLIER TERMINATION OF THE LEASE TERM.
(b) Tenant's Insurance. Tenant shall, at its expense, obtain comprehensive general liability insm•ance or
risk pool coverage against alI claims on account of bodily injury, personal injury or property damage, for which
Tenant may, as a result of its operations or other use of the Leased Premises, become liable, with limits of not less
than the statutory maximum liability of Tenant.
(c) Workers Compensation. Tenant shall maintain workers compensation or similar insurance affording
not less than Texas statutory coverage minimums and providing not less than statutory limits or benefits for all
employees of Tenant employed at the Leased Premises.
(d) Scope, The insurance or risk pool policies or duly executed certificates thereof, together with
satisfactory evidence that the premium has been paid, shall be provided to Landlord on or before the Effective Date
of this Lease; and, thereafter, evidence of continuing insurance and premium payment shall be delivered to Landlord
not less than 30 days prior to the expiration of each policy required to be in force hereunder. If Tenant fails to
maintain the required insurance or to deliver evidence of same this Lease will continue in full force and effect;
LEASE AGREEMENT' PAGE 4
provided, however, that Landlord may, but shall not be obligated to, obtain such insurance and be reimbursed by
Tenant upon demand.
(e) Waiver of Subrogation. Landlord shall not be liable by way of subrogation or otherwise to Tenant or
to any insurance company insuring Tenant for any loss or damage to any of the property of the Landlord or Tenant
covered by insurance even though such loss or damage might have been occasioned by the negligence o£ (1)
Landlord or its officers, directors, employees, agents, contractors, customers, or visitors and invitees of Landlord at
the Leased Premises, or (2) Tenant or its Permitees. This waiver shall be in effect only so long as the applicable
insurance or risk pool policies shall contain a clause or endorsement to the effect that the waiver shall not affect the
right of the insured to recover under such policies. Tenant shall use its best efforts, including payment of any
additional premium, to have its insurance policies contain the standard waiver of subrogation clause. In the event
Tenant's insurance carrier declines to include in such carrier's policies a standard waiver of subrogation clause,
Tenant shall promptly notify Landlord.
(a) Destruction.
(1) Cancellation. If any portion of the Improvements situated on the Leased Premises shall be
damaged or destroyed, this Lease shall continue in full force and effect and shall not be affected thereby.
(2) Restoration. In the event of unintended damage or destruction, Tenant shall remove any
debris and cause the Leased Premises to be repaired or restored as Tenant may deem necessary or desirable, but in
any event the Leased Premises shall be repaired or restored to a safe and sightly condition in compliance with all
applicable laws.
(3) Insurance Proceeds. All of Tenant's insurance proceeds payable with respect to damage or
desu UCtiOn of the improvements situated on the Leased Premises shall be retained by and be the property of Tenant.
(b) Condemnation.
(1) Taking of Parkin og r Access, In the event of a taking by the power of eminent domahi or
conveyance in lieu thereof ("Taking") of the whole or any part of the Leased Premises, this Lease shall terminate as
to the portion so taken but shall remain in full force and effect as to the balance of the Leased Premises.
(2) Awards. All compensation awarded for any Taking of the Leased Premises, including any
interest of Landlord os• Tenant therein, shall be the property of Landlord, and Tenant hereby assigns to Landlord all
of Tenant's rights, title and interest in and to any and all such compensation.
(3) Restoration. If there is a Taking of all or part of the Leased Premises, Tenant, at its sole
discretion and expense, shall restore and rebuild the Leased Premises, in such manner as Tenant may elect, provided
that the same shall be in accordance with all applicable laws.
9. General Provisions.
(a) Notice. "Notice" shall mean any notice, notification, consent, approval, request, designation,
submission, specification, election or other communication required or permitted under this Lease. All Notices shall
be in writing and shall be deemed to have been given and received the earlier of (1) the date the Notice is delivered
by one party to the other party personally or delivered to the party's address by a party or by a delivery service
which records delivery dates, or (2) three days after the Notice is placed in the mail addressed to the other party at
the party's address, properly stamped, certified or registered mail, return receipt requested. A parry's address shall
be as follows or as set forth in a written Notice to the other party:
Landlord: tonic Investments, LLC
219 East White Street
LLASL AGRLLMEIeI'I' PALL 5
Anna, Texas 75409
Tenant: City Manager
City of Anna, Texas
111 N. Powell Parkway
Anna, Texas 75409
With a copy to:
and: Clark McCoy
Wolfe, Tidwell & McCoy, LLP
2591 Dallas Parkway, Suite 300
Frisco, Texas 75034
Fax:972-712-3540
(b) Entire Agreement. This Lease embodies the entire agreement and understanding between the parties
as to the lease of the Leased Premises by Tenant and supersedes all prior negotiations, agreements and
understandings pertaining to such lease. Any provision of this Lease may be modified, waived or discharged only by
an instrument in writing signed by the party against which enforcement of such modification, waiver or discharge is
sought. This Lease is not intended to be nor shall it be construed as a service contract or contract for the sale of
goods by Landlor to Tenant. Tenant does not by entering into this Lease waive any immunities it may have under
common law or statute.
(c) Commission. Tenant and Landlord hereby represent to each other that neither has entered into any
agreement or understanding that would give rise to a real estate commission being owed in connection with this
Lease, and each of Landlord and Tenant shall indemnify and hold the other harmless against any commission,
payment, interest or participation claimed on account of this Lease with any party under any alleged agreement or
understanding entered into on that party's behalf with the person or entity claiming the commission, payment,
interest or participation.
(d) Force Majeure. Each party shall be excused fi'om performing an obligation or undertaking provided
for in this Lease for so long as such performance is prevented, delayed, retarded or hindered by an Act of God, fire,
earthquake, flood, explosion, action of the elements, war, invasion, insurrection, riot, mob violence, sabotage, strike,
lockout, action of labor unions, requisitions, laws, or orders of government or civil or military authorities.
(e) Surrender. Upon the expiration of the Term or earlier termination of this Lease, Tenant shall
surrender the Leased Premises to Landlord. Tenant shall remove all Personal Property, which are not fixtures (other
than trade fixtures installed by Tenant, which Tenant may remove. All other installations or improvements,
including all infrastructure, structures, buildings, I VAC equipment, paneling, partitions, railings, mezzanine floors,
and galleries made by either party shall be and become upon installation, the property of Landlord and shall be
surrendered with the Leased Premises at the expiration or termination of this Lease unless Landlord notifies Tenant
to the contrary in writing, in which event Tenant may remove such property at its expense. Any property not
promptly removed by Tenant under the provisions of this subparagraph may, at Landlord's option, be deemed to
have been abandoned by Tenant and may be retained by Landlord without any claim by Tenant. Tenant shall in any
event repair any damage to the Leased Premises caused by Tenant's removal of any property.
(f) Applicable Law, Construction. The laws of the State of Texas shall govern the validity, performance
and enforcement of this Lease. The invalidity or unenfvrceability of any provision of this Lease shall not affect or
impair any other provision. If any provision of this Lease is capable of two constructions, one of which would render
the provision invalid and the other of which would make the provision valid, the provision shall have the meaning
which renders it valid. The submission of this document for examination does not constitute an offer to lease, this
document being effective only upon the conditions stated herein.
LEASE AGREEMENT PAGE 6
Lease.
(g) Time of the Essence. Time is of the essence with respect to each provision, term and covenant of this
(h) Captions. The captions are for convenience and do not limit or define the provisions of this Lease.
(i) Gender, NuIII Whenever the sense of this Lease requires it, the use of (1) singular number shall
be deemed to include the plural, (2) the masculine gender shall be deemed to include the feminine or neuter gender,
and (3) the neuter gender shall be deemed to include the masculine and feminine gender.
(j) Counterparts. This Lease may be executed in multiple counterparts, each of which shall be an
original, but all of which shall constitute one instrument.
(lc) Conri•act Interpretation. This Lease is the result of negotiation between the parties, and shall, in the
event of any dispute over the meaning or application of any portion thereof, be interpreted fairly and reasonably, and
not to be more strictly construed against one party than another, regardless of which party originally drafted the
language in dispute.
(1) No Joint Venture. It is acknowledged and agreed by the parties that the terms hereof are not intended
to and shall not be deemed to create a partnership or joint venture among the parties.
(m) Binding Effect. All provisions of this Lease shall be binding upon and inure to the benefit of the
parties and their respective successors and permitted assigns.
LANDLORD:
JONIC INVESTMENTS/l,LLC
By: JhzW&?O 14)
Jon Frendricks, its Managing Member
STATE OF TEXAS §
COUNTY OF COLLIN §
Before me, the undersigned notary public, on the ��day of , 2018, personally appeared
Jon Hendricks known to me (or proved to me) to be the person whose nai& is subscribed to the foregoing
instrument and aclmowledged to me that he executed the same in his capacity as Managing Member and on behalf
of Jonic Investments, LLC,
u�.
blic, Slate of Texas
TENANT
THE CITY OF ANNA, TEXAS
3
Printed Name: /0_u .p I'G-t 5 cy
Title:C_rl4 ii'.bw"s.eiL
Date: �/ci --�g
STATE OF TEXAS §
COUNTY OF COLLTNT §
Tana Ross
My Commission Cx�:ires
osrovzo2�
iD No. 126995695
LEASE AGREEMENT PAGE 7
Before me, the undersigned notary public, on the ACday of 4WA, 2018, personally appeared
AWuAta Scltw�lle Imown to me (or proved to me) to be the Arson whose name is subscribed to the
foregoing mstrument and aclmowledged to me that he executed the same in his capacity as and on
behalf of C1
ary Publ' , State of Texas
t 0� iana Ross
r a my Commission CxPhlrs
j? 06/01/2021
ID No. 126916696
LEASE AGREEMENT PAGE S
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