The resolution and lease agreement for consideration is between the City of Lubbock and Joyland Amusement Park, Inc., for the lease of certain real property located at Mackenzie Park. The City of Lubbock agrees to lease to Joyland Amusement Park, Inc., all the area in Mackenzie Park known as Joyland Amusement Park and further described in the attached Exhibit A. The purpose of this agreement is for Joyland Amusement Park, Inc., to maintain and operate an amusement park for the entertainment and recreation of the citizens of Lubbock, Texas and the surrounding South Plains. The term of this agreement will be for 5 years and shall be automatically extended for successive five-year terms, not to exceed 40 years in any event, unless either party shall give written notice of termination to the other party at least 180 days before the then current five year term. This agreement will commence upon the final sale and transfer of assets from Mackenzie Park Playground d/b/a Joyland Amusement Park, to Joyland Amusement Park, Inc., and will terminate on December 31, 2062, subject to the automatic renewal and notice of termination. The parties retain the right at its election, to cancel and revoke this agreement, upon one hundred and eighty (180) days notice to the other Party, prior to the expiration of the then current five year term, as the case may be. Joyland Amusement Park, Inc., agrees to make an annual payment of $36,000.00 per year to the City beginning in 2023, as set forth below. This amount shall be adjusted based upon the All Items Consumer Price Index for All Urban Consumers (CPI-U) indicator as determined by the United States Bureau of Labor Statistics regarding the Dallas-Fort Worth-Arlington region at the beginning of each calendar year provided however the annual CPI-U increase shall not exceed:
- 4.00% annually for the period of January 1, 2024 through December 31, 2027;
- 3.50% annually for the period January 1, 2028 through December 31, 2032;
- 3.00% annually for the period January 1, 2033 through December 31, 2037;
- 2.50% annually for the period January 1, 2038 through December 31, 2042; or
- 2.00% annually for the period January 1, 2043, through December 31, 2047, provided however the annual rent for this period may not exceed $65,000.
The City agrees that Joyland Amusement Park, Inc., shall not be required to pay annual rent for the following years in consideration of the following capital improvements to the Park:
- 2023 Abatement – Install 1,000 linear feet of six-foot (6’), minimum height, chain link fence with security wiring on top, such as barbwire or razor wire, and curbing where possible; Update the main restroom facility inside the Leased Premise.
- 2024 Abatement – Install 1,000 linear feet of six-foot (6’), minimum height, chain link fence with security wiring on top, such as barbwire or razor wire, and curbing where possible; Update the two (2) remaining restroom facilities inside the Leased Premise.
- 2025 Abatement – Install or replace 12,000 sq. ft. of pedestrian walkway within the Leased Premise.
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Revenue to the City is $36,000 per year beginning in 2023 as set forth below, with an annual adjustment based upon the All-Items Consumer Price Index (CPI), as determined by the United States Bureau of Labor Statistics regarding the Dallas-Fort Worth-Arlington region at the beginning of each calendar year provided however the annual CPI-U increase shall not exceed the following rates. The first 3 years of rent will be abated, provided specified improvements are completed upon inspection.
- 4.00% annually for the period of January 1, 2024 through December 31, 2027;
- 3.50% annually for the period January 1, 2028 through December 31, 2032;
- 3.00% annually for the period January 1, 2033 through December 31, 2037;
- 2.50% annually for the period January 1, 2038 through December 31, 2042; or
- 2.00% annually for the period January 1, 2043, through December 31, 2047, provided however the annual rent for this period may not exceed $65,000.
The payment must be renegotiated prior to the expiration of the fifth 5-year term. |