A Lease Agreement between the City of Lubbock and Mackenzie Park Playground, Inc., dba Joyland amusement Park, has been in effect since August 13, 1987, and the current term is set to expire on April 15, 2022. The resolution and lease agreement for consideration was renegotiated and includes standard language for City agreements in 2022. The City of Lubbock agrees to lease to Joyland, all the area in Mackenzie Park known as Joyland Amusement Park and further described in the attached Exhibit A. The term of this Agreement will be for twenty-five (25) years and shall be automatically extended for successive 5-year terms, not to exceed forty (40) years in any event, unless either party shall give written notice of termination to the other party before the expiration of the first, second or third 5-year term, as the case may be. This Lease Agreement will have a commencement date of April 15, 2022, and a termination date of April 15, 2047, subject to the automatic renewal and notice of termination. The parties retain the right at its election, to cancel and revoke this Agreement, with or without cause, upon one hundred and eighty (180) days notice to the other Party. Joyland agrees to make an annual payment of $36,000 per year to the City beginning in 2022, as set forth below. This amount will be adjusted based on the All-Items Consumer Price Index (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 the annual CPI-U increase shall not exceed the following rates.
4.00% annually for the period of April 15, 2022 through April 15, 2027;
3.50% annually for the period April 15, 2027 through April 15, 2032;
3.00% annually for the period April 15, 2032 through April 15, 2037;
2.50% annually for the period April 15, 2037 through April, 2042; or
The lesser of 2.00% annually, or $70,000 annually for the period of April 15, 2042 through April 15, 2047.
The City will install, maintain, and repair the water main to the property, up to the water meter serving Joyland, and the City will also install the water meter servicing Joyland. The water service line downstream from the water meter and any necessary Reduced Pressure Zone equipment, will be the responsibility of Joyland. |
Revenue to the City is $36,000 per year 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.
4.00% annually for the period of April 15, 2022 through April 15, 2027;
3.50% annually for the period April 15, 2027 through April 15, 2032;
3.00% annually for the period April 15, 2032 through April 15, 2037;
2.50% annually for the period April 15, 2037 through April, 2042; or
The lesser of 2.00% annually or $70,000 annually for the period of April 15, 2042 through April 15, 2047
|