HomeMy WebLinkAboutLease - B/W City of Owasso and OPWA
LEASE
LAW OFFICES
H IRS H, .J 0 H ANN I N G AND H U D SON
OKLAHOMA CITY
LAW OFFICES
HIRSH. ..JOHANNING AND HUDSON
OKLAHOMA CITY
LEASE
nus INDENTURE OF LEASE, made and entered into by and between the CITY
OF OWASSO, Oklahoma, a municipal corporation (hereinafter called the
"LESSOR"), and the Trustees of 1HE OWASSO PUBLIC WORKS AUTHORITY, a pub-
lic trust as hereinafter set forth (hereinafter called the "LESSEE"),
witnesseth:
The abovementioned Authority is a public trust, for the use and benefit
of the aforesaid municipal corporation, created and existing under and
by virtue of a certain Declaration of 'Trust and an acceptance of benefi-
cial interest thereunder by the governing body of said municipality upon
behalf of the municipality, ~ld the provisions of Sections 176 to 180,
inclusive, of Title 60, O~~a}loma Statutes 1971, and the Oklahoma Trust
Act. As thereby authorized, the property demised and leased hereunder
is to be held and aruninistered by the tnlstees of said Authority for
the performance and furtherance of authorized or proper functions of
the beneficiary n1U.Yllcipality; and said property also is to be held, and
the covenants, agreements, provisions and conditions hereinafter contain-
ed to be kept, obserJed and performed on the part of tl~ I~SSEE, and the
rights and privileges of LESSEE hereunder are to be exercised by the Trus-
tees of said Authority as such Trustees, and not otherwise.
.ARTI CLE I
LEASED PROPERTY
SECTION 1. Pursuant to Ordinance No. 158 which was passed and ap-
proved by the governing boa.)7 or~m1JJlicipality on the 12th
day of June , Clnd for 2,nd in consideration of the covenants:
agreemenf.5;pTOV:i:SIOns ana: conditions hereinafter contained on the part
of LESSEE to be kept, ObSel\Ted and performed, LESSOR has denlised and leased,
and. hereby does demise and lease, unto LESSEE, the following property:
LAW OFFICES
HIRSH, JOHANNING AND HUDSON
OKLAHOMA CITY
A.
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All of the follm.;ing described proprietary, revenue-producing
utility properties, systems and facilities of LESSOR:
(1) All of the water production, storage, transportation and
distribution system and facilities, including all tangible
property, Teal and personal, and all interests therein, apper-
taining or related thereto or used 1ll connectIon therewith,
and all rights-of-way, easements, licenses, and other rights
and privileges, appertainIng 01 related to such system and
facilities or the use thereof, now belongIng to LESSOR or un-
der its custody, management or control; and
(2) All of the sanitary se'Wage collection, transportation,
processing and disposal system and facilities, including
all tangible property, real and personal, and all interests
therein appertaining or related thereto or used in connection
therewith, and all rights~of-way, easements, licenses, and
other rights and privileges, appertaining or related to such
system and facilities or the use thereof, now belonging to
LESSOR or under its custody, management or control; and
(3) All of the garbage and trash collection, transportation.
processing and disposal facilities, lllcluding all tangi-
ble property, real and personal, and all interests therein,
appertaining or related thereto or used in connection tr.ere-
with, and all rights-of-way, easements, licenses, and other
rights and privileges, appertaining or related thereto or to
the use thereof, now belonging to LESSOR or under its custody,
management or control; and
(4) All of the property specifically described in the "Schedule
of Specific Property" hereto attached; and
LAW OFFICES
HIRSH. .JOHANNING AND HUDSON
OKLAHOMA CITY
B. Any and all proprietary, revenue-producing utility syst6ns
and facilities, and any and all additions and/or improvements
to any proprietary, revenue-producing utility systems and facilities (includ-
ing, but not lmlited to, each presently-existing system and facilities men-
tioned in paragraph "A'1 of this Section), and any and all tangible property,
real or personal, and any and all interests tllerein, appertaining or relat-
ed to any such system and facilities or used in connection therewith, and
any and all rights-of-\~y, easements, licenses, or other rights or privil-
eges, appertaining or related to any such system and facilities or the use
thereof, which may, hereafter, be acquired by said City or which shall,
hereafter, come llilder its custody, management or control: It being the
intent of this paragraph l1B" that any of the foregoing, immediately upon
acquisition of ownership, custody, management or control thereof by said
City shall bec~ne and be a part of the property demised and leased here-
under.
SECTION 2. Any and all property, systems and facilities purchased and/or
constructed and/or installed by LESSEE with the proceeds of
indebtedness incurred by LESSEE and secured by its leasehold interest in
and to any of the property described in Section 1 of this Article, or by
the revenues (or any part L~ereof) from a~y of the property described in
Section 1 of this Pu'ticle, shall, immediately upon such purchase aIld/or
construction and/or installation by LESSEE, become the property of LESSOR
and become and be a part of the property demised and leased hereunder.
ARTICLE II
TERM
To have and to hold the above-described leased property unto LESSEE for and
during the tern of fifty (50) years, commencing at 12:01 o'clock A.M. on
the 14th day of ~__, 1973, a."1d extending to and includ~ng the
13thQ.'aY of Julv , 2023, and so long thereafter as any lndebt-
eooess incurredby'LESStE secureCfby the revenues of any of the property
described in Article I hereof (or any part thereof) shall remain unpaid,
Ullless such term be terml11ated sooner, as hereinafter provided.
~...... ()FFICE:S
HIRSH, .JOHANNING A,........ HUDSON
OKLAHOMA CITY
ARTICLE III
CHANGES IN LEASED PROPERTI
SECTION 1. LESEE shall have the right to change the location of any
personal property demised and leased hereunder, or to sub-
stitute, for any personal property demised and leased hereunder, other
property of siml1ar character of not less than equal v~lue at the time
of such substitution. In the event of any such change of location or
substitution under authority of this Section, LESSEE shall deliver to
LESSOR a written statement describing the property so moved and the lo-
cation to which the same was moved, or a description of the property
for which other property was so substituted, with a description of the
substitute property, as the case may be. No substitute property shall
be deemed to comply with the requirements of this Section if there shall
exist any lien or encumbrance whatsoever upon LESSEE's title thereto.
Title to any such substitute property shall vest in LESSOR immediately
upon installation and shall become arld be a part of the property demised
and leased hereunder.
SECTION 2. In the event that any of the property demised and leased
hereunder shall become no longer useful or needful for the
purpose of t11is Lease, and other property not be substituted therefor,
the same shall be redelivered by LESSEE to LESSOR at the then-current
location of such property. A \\'Titten statement describing the property
and its location furnished by LESSEE to LESSOR shall constitute redeliv-
ery of the property by LESSEE to LESSOR, and, upon such redelivery, the
property shall cease to be a part of the property demised and leased
hereunder.
ARTICLE IV
LEASE CONSIDERATION
The consideration of this Lease shall be th~ installation
and construction of improvements to the Leased and operation of the
Leased Property 9 all for the purpose o:E aiding the LESSOR in the performance
of its public functii0~~ ~D 3~~ to:tl1 In, th~ Declaration of Trust of the LESSEE
and the installa e',n a:ad. constructlOn, of saId improvements and. the said oper-
ation .:;hal] lute the total comnderation for this Lease for the entire
~pYfi' and all extenSIons and renewals thereof as hereinafter provided.
, I
I
LAW OFFICES
HIRSH, JOHANNING AND HUDSON
OKLAHOMA CITY
ARTICLE V
LEASE PURPOSE
The property described in Article I hereof is demised and
leased to LESSEE for the purpose of enabling LESSEE to execute and per-
form, and to further the execution and performance of, public functions
of LESSOR as provided in the Declaration of Trust of the above-mentioned
1HE aVASSO PUBLIC WORKS AUTIIORITY, and not othenvise.
ARTICLE VI
COVENANTS
LESSEE hereby covenants and agrees:
(a) That it will operate and maintain, at its own cost and
expense, all of the property dennsed and leased hereunder,
in a good and efficient manner, and will protect and hold
harmless the LESSOR from any loss, cost, expense or
damage directly or indirectly connected WIth, or arising
out of, the maIntenance or operation ot sald property.
(b) That it will comply with all valid acts, rules and
regulations, orders and directlOns of any legislative,
executive or admim..strative body or officer having Juris-
diction applicable to said property and a,"lY part thereof,
or its operation or matntenance.
(c) That it will do and perform all things necessary
and practical to accrnrrpllsh the purposes of
11IE OWASSO PUBLIC WORKS AUTIIORITY,
in respect of ArtIcle V of thiS Lease, Klthin the scope
of the powers and duties set forth in the Declaration of
Trust of said Authority, and WIthin the scope of any con~
tract securing any Indebtedness Incurred by the Tru:;tees
of said Authority pursuant to said Declaration of Trust.
(d) That it will not encumber or permit to be encuPlbered
the title of the LESSOR to any part the leased prop""
erty described ArtIcle 1 of this Lease, or any substitu-
tions therefor, or in any manner perrrut any such titLe to
said property to be with payment of any obHga-
tion for the payment sum PROV IDED, that
the foregoing shall not prevent the encuTnbrance or the
\Ji
LAW OFFICES
HIRSH. JOHANNING AND HUDSON
OKLAHOMA CITY
leasehold interest of the LESSEE to all or any specific
portion of the leased property in CO!UlectlOn wIth the 1,n-
curring of .mdedbtedne;,s authorIzed by the DeclaratIOn of
Trust of the aforesaid Authoflty or by law; PROVIDED FUR-
TIffiR, that if and so long as the IncurrIng of any such in-
debtedness 15 requued by applIcable law to have been approv-
ed by the governIng body of the BenefIcIary or the members
of such governing body, no such Indebtedness shall be in-
curred until after, and pursuant to, such approval.
ARTICLE VII
PROHIBITION OF LIENS
The LESSEE shall have no Tight or authority whatsoever to
allow the title of the LESSOR to the leased property or any part thereof
to be subjected to any lnechanlc1s or materialmen's lien or other lien.
All persons dealing \,,'i th the LESSEE shall take notice of the foregoing
and shall look solely to the LESSEE for the payment of any indebtedness.
ARTICLE VII I
ASSIG~1ENT
The LESSEE shall have no right to assign this Lease; PROVIDED, that an
assignment thereof IDvolved 1n, or made as an .ll1Cldent to, encumbrance
of the leasehold as pennltted by the Declaration of Trust of the afore-
said .Authority, or the subleasing of the leased property or any portion
thereof for or as a part of the operat::um thereof, shall not be constru-
ed as being prohIbited hereby,
ARTICLE IX
'fERlvUNATION
SECTION 1.
This Lease, automatically, shall terminate:
(a) At the end of the tenn as set forth in Article
II and Article XII hereof; or
(b) In the event that there shall be a default in
the Lease ConSIderatIon herein prOVIded and
such default shall contlllue for a period of nInety
(90) days after not1ce ill wTltUlg given by LESSOR
to LESSEE and, if there then be any funded debt of
the LESSEE, also to the tTustee 01" trustees for
such funded debt; or
LAW OFFICES
HIRSH. .JOHANNING AND HUDSON
OKLAHOMA CITY
(c) In the event that there shall be a failure of
any additional consideratIon on the part of
the LESSEE or a breach of any covenant or condition
herein required to be performed by LESSEE and such
failure or breach shall continue for a period of
ninety (90) days after demand in writing for the
performance thereof or compliance therewith given
by LESSOR to LESSEE and, if there then be any fUnded
debt of the LESSEE, also to the trustee or trustees
for such funded debt; or
Cd) In the event that all funded indebtedness in-
curred by t.he LESSEE during the term of this
Lease as set forth in Article II and Article XII
hereof and secured by the leasehold and/or the reve-
nues from the leased property, or by any part of
either or both, shall have been fully paid and
extinguished (other than by refunding), unless the
LESSOR shall, prior to such tIme, in \vriting notify
LESSEE that the LESSOR elects that the provisions
of this paragraph Cd) shall not apply thereto;
PROVIDED, that this Lease shall not terminate and none of the foregoing
provisions for termination shall be effective or operable until all in-
debtedness of LESSEE secured by the Leased Property or any of its reve-
nues shall have been paid Ot' full provision for its payment made.
SECTION 2. No waiver by LESSOR for any failure or breach as afore-
said shall operate as a waIver any subsequent failure
or breach of or by the LESSEE \~latsoever,
SECTION 3. At the tenninatl.on of this Lease as aforesaid, LESSEE
shall deliver to LESSOR the leased property and all sub-
stitutions therefor in good and serviceable condition, ordinary wear
and natural deterioration exeepted, and LESSOR shall have the right to
repossess the same; whereupon, all iIlterest of LESSEE in and to the
leased property under this Lease, shall, ipso facto, ternlinate,
If the provisions of the Declaration of Trust of the
aforesaid AuthorIty shall be or become inoperative, for
any reason prior to terminatIon of said trust 111 accordance with the
terms of said Declaration of Trust, this Lease shall, at the same time,
be and become null an.d VOId. This provlsion shall be a condition sub-
sequent only.
SECTION 4.
'\
LAW OFFICES
HIRSH. .JOHANNING AND HUDSON
OKLAHOMA CITY
(d) Any such notice and/or demand to a Trustee for the owners
of any funded debt of the LESSEE shall be addressed to
the last such Trustee as shall appear of record in the office
of the County Clerk of Tulsa County, Oklahoma; and the giver
of such notice and/or demand shall not be required to ascer-
tain whether or not such trustee theretofore had been succeed-
ed, displaced or removed, or whether or not there shall be a-
nother trustee for such funded debt, in order for such notice
and/or demand to be effective hereunder.
ARTICLE XII.
RENEWAL
At the expiration of the tenn of this Lease, the LESSEE shall have the option
to renew this Lease for the same number of years expressed in Article II here-
of, with such renewed Lease to be on the same terms, conditions, covenants and
provisions as herein contained, including this provision for renewal, by giv-
ing notice in writing to LESSOR of the exercise of such option and filing a
copy of said notice in the office of the County Clerk of Tulsa County, Okla-
homa, not more than six months prior to the expiration of the term hereof. In
the event of the exercise of such option as aforesaid, no new writing shall
be required to effect such renewal in accordance with the terms of this Lease
and said notice.
IN WITNESS VlliEREOF, the City of ~vasso, Oklal1oma, a municipal corporation, as
LESSOR, and the Trustees of The ~','clsso Public Works Authority, a public trust
as LESSEE, have hereunto set their hands, executing this Lease in several
multiple originals all of which constitute one and the same instrument, on
this ,-i/~ day of ()~4-'~k:- , 1973.
77 {/ -
ATTEST: (Seal)
THE CITY Ot/,eW.A$SO, OKLAHQ'vlA
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By
THE OWASSO PYELI." WOIU(S AUTIlORITI
By
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ATTEST: (Seal)
-9-
LAW OFFICES
HIRSH, JOHANNING AND HUDSON
OKLAHOMA CITY
SCHEDULE OF SPECIFIC PROPERTY
The specifically-described property mentioned in Paragraph A of Section
1 of Article I of the Lease to which this Schedule is attached as a part
thereof is described as follows:
All of that part of the NEl/4 SWl/4 NEl/4 of Section 31, Township 21
North, Range 14 East of the Indian Base & Meridian, Tulsa County, Okla-
homa being more particularly described as follows, to wit:
Beginning at a point in the north boundary of said NEl/4 SW1/4 NEl/4
125.7 feet east of the northwest corner thereof, said point being also
in the south boundary of Ivadel Addition, according to the official
recorded plat thereof; thence east along the north boundary of said
NEl/4 SWl/4 NEl/4 a distance of 217.80 feet to the southwest corner
of Block 2 of said Ivadel Addition; thence 900 to the right a dis-
tance of 100.00 feet; thence west and parallel to the north boundary
of said NEl/4 SW1/4 NEl/4 a distance of 217.80 feet; thence north
100.00 feet to the point of beginning, containing 0.50 acres.
LAW OFFICES
HIRSH, .JOHANNiNG AND HUDSON
OKLAHOMA CITY
STATE OF OKLAHO\1A
)
) SS
)
COUNTY OF TULSA
On this day of 9~~;!j;t , 1973, before me, the illldersigned Notary
lic in and for the abovenamed State and Coooty, personally appeared
~~: ~ to me known to be the identical person who
xecuted the within and foregoing Lease upon behalf of the municipal corpo-
ration named as LESSOR therein as the Mayor of said milllicipal corporation,
and acknowledged to me that he executed the same as his free and voluntary
act and deed and as the free and voluntary act and deed of said municipal
corporation, for the uses and purposes therein set forth.
WITNESS 1v1Y HAND and seal the date above ,<<itten.
GfJfigA-~ ))l. c1~4
Notary Public
(Seal)
My Commission Expires: