ORDER NO. 278,°1
RPPROVE LERSE RGREENENT
WITH RRTS & CRAFTS FOUNDRTION
On this the 12th day of November, 2@@2, upon motion made by
Commissioner Griffin, seconded by Commissioner Baldwin, the
Court unanimously approved by a vote of 4-@-@, that the Cour^t,
under- the authority granted in Section 32@ of the Texas Local
Government Code, approve a lease between the County and the
Texas Arts and Crafts Educational Foundation, Inc., for
approximately 7.18 acres of land fronting on State Highway 27
and adjoining the Kerr County Agricultural Facility, more
par•tic~.ilarly described in the lease.
COMMISSIONERS' COURT AGENDA REQUEST
PLEASE FURNISH ONE ORIGINAL AND NINE COPIES OF THIS REQUEST AND DOCUMENTS TO BE
REVIEWED BY THE COURT.
MADE BY: Fred Hennis~, 1 OFFICE: County Judge
MEETING DATE: November 12. 2002 TIME PREFERRED:
SUBJECT: (PLEASE BE SPECIFIC)
Consider and discuss approval of Lease Agreement with Arts & Crafts Fair Foundation.
EXECUTIVE SESSION REQUESTED: (PLEASE STATE REASON)
NAME OF PERSON ADDRESSING THE COURT:
ESTIMATED LENGTH OF PRESENTATION:
IF PERSONNEL MATTER -NAME OF EMPLOYEE:
County Jude
Time for submitting this request for Court to assure that the matter is posted in accordance with Title 5, Chapter
551 and 552, Government Code, is as follows:
Meeting scheduled for Mondays:
THIS REQUEST RECEIVED BY:
THIS REQUEST RECEIVED ON:
5:00 P.M. previous Tuesday.

All Agenda Requests will be screened by the County Judge's Office to determine if adequate information has been
prepared for the Court's formal consideration and action at time of Court Meetings. Your cooperation will be
appreciated and contribute towazds you request being addressed at the eazliest opportunity. See Agenda Request Rules
Adopted by Commissioners' Court.
ps107/02-300.1/9-26-02
LEASE
Terms
Date:
Landlord:
Landlord's Address:
Tenant:
Tenant's Address:
/~. ~. ~ ~ .~ ,~ ~ :t > 2002
KERR COUNTY TEXAS
Ken• County Courthouse
Kerrville, Texas 78028
TEXAS ARTS AND CRAFTS EDUCATIONAL
FOUNDATION, INC., a Texas non-profit corporation
P. O. Box 291527
Kerrville, Texas 78029
Premises: Approximately 7.18 acres of land fronting on State Highway
No. 27 and adjoining the Kerr County Agricultural Facility,
said property being more specifically described in EXHIBIT
"A" attached hereto
Rent:
Tenant agrees to pay Landlord as minimum rental the sum of $1.00 per year for the term of
this Lease. These payments shall constitute the minimum annual rental and be supplemented
by additional annual payments as provided below:
a. In addition to the minimum annual rental set out above, Tenant agrees to pay to
Landlord at the time and in the manner specified an additional rental in an amount
equal to twenty-five per cent (25%) of the net profits derived by Tenant from the
operation of the Premises.
b. The term "net profits" as used in this lease shall mean the gross receipts derived from
Tenant's operation of the Premises adjusted as follows:
(1) Less operating expenses and obligations, including, but not limited to, wages,
salaries, maintenance, repair, replacements, advertising, insurance and other
items as required by sound and conservative accounting practices.
(2) Less the costs of capital improvements constructed on the Premises by
Tenant.
ps107/02-300.119-26-02
(c) Tenant shall keep full, complete, and proper books, records and accounts ofTenant's
operations on the Premises and said books, records, and accounts shall at all
reasonable times be open to the inspection of Landlord, Landlord's auditor, or other
authorized representative or agent.
(d) Rent is due and payable annually on or before the expiration of thirty (30) days from
each anniversary date of the Lease during the term.
(e) At the same time each annual payment of rent is made by tenant to Landlord, Tenant
shall fiunish to Landlord a statement, certified to be correct by Tenant, that sets forth
all information that is necessary to verify the additional rental that is payable to
Landlord for the prior one year period plus any plans for future activities and
improvements.
Term (years): Forty (40) years
Commencement Date: ~/c ~ ~ u KY v i a- , 2002
Termination Date: ,~fJiiyf-sntStir `Y , 2042
Use: The Premises will be maintained for public use. In keeping
with this general purpose, the Premises will be the site for the
official Texas State Arts and Crafts Fair and a year round
event park to attract, promote, and encourage commerce
through tourism and related business.
Amouut of Liability Iusurauce
Death bodily injury:
Property:
$500,000
$500,000
Definitions
"Landlord" means Landlord and its agents, employees, invitees, licensees, or visitors.
"Tenant" means Tenant and its agents, employees, invitees, licensees, or visitors.
"Essential Services" means utility connections reasonably necessary for occupancy of the
Premises for the Use.
ps107/02-300.1/9-26-02
Clauses and Covenants
A. Tenant agrees to -
L Lease the Premises for the entire Term beginning on the Commencement Date and
ending on the Termination Date.
2. Accept the Premises in their present condition "AS IS," the Premises being currently
suitable for Tenant's intended Use.
3. Obey all laws, ordinances, orders, and rules and regulations applicable to the use,
condition, and occupancy of the Premises.
4. Pay the rent to Landlord as herein provided.
5. Obtain and pay for all utility services used by Tenant.
6. Allow Landlord to enter the Premises to perform Landlord's obligations and to inspect
the Premises.
Repair, replace, and maintain the Premises.
8. Repair any damage to the Premises caused by Tenant.
9. Maintain public liability insurance for the Premises and the conduct of Tenant's
business, naming Landlord as an additional insured, in the amounts stated in the lease.
10. Deliver certificates of insurance to Landlord before the Commencement Date and
thereafter when requested.
11. Indemnify, defend, and hold Landlord harmless from any loss, attorney's fees, court
and other costs, or claims arising out of use of the Premises.
12. To operate the Premises in an efficient and reputable manner.
13. Vacate the Premises on termination of this lease unless renewed and extended by
agreement of the parties.
ps107/02-300.1/9-26-02
B. Tenant agrees not to -
1. Use the Premises for any purpose other than that stated in the lease.
2. Create a nuisance.
3. Interfere with Landlord's operations on the adjoining County Agricultural Facility.
4. Permit any waste.
5. Alter the Premises without the prior written consent of Landlord.
6. Allow a lien to be placed on the Premises.
Assign this lease or sublease any portion of the Premises without Landlord's written
consent.
C. Landlord agrees to -
1. Lease to Tenant the Premises for the entire Tenn beginning on the Commencement
Date and ending on the Termination Date.
2. Allow Tenant's guests, invitees and visitors to use Flat Rock Lake Pazk for pazking
during events on the Premises and allow overflow pazking on the adjoining County Agricultural
Facility when such use will not interfere with any function that might be taking place at said facility.
D. Landlord agrees not to -
1. Interfere with Tenant's possession of the Premises as long as Tenant is not in default.
E. Landlord and Tenant agree to the following:
1. Alterations. Any permanent physical additions or improvements to the Premises
made by Tenant will become the properly of Landlord. Landlord may require that Tenant, at
termination of this lease and at Tenant's expense, remove any moveable physical additions and
improvements.
ps107/02-300.1/9-26-02
2. Abatement. Tenant's covenant to pay Rent and Landlord's covenants are independent.
Except as otherwise provided, Tenant will not be entitled to abate Rent for any reason.
3. Release of Claims/Subrogation. Landlord and Tenant release each other from any
claim, by subrogation or otherwise, for any damage to the Premises by reason of fire or the elements,
regardless of cause, including negligence of Landlord or Tenant. This release applies only to the
extent that it is permitted by law, the damage is covered by insurance proceeds, and the release does
not adversely affect any insurance coverage.
4. Condemnation/Substantial or Partial Taking
a. If the Premises cannot be used for the purposes contemplated by this lease
because of condemnation or purchase in lieu of condemnation, this lease will
terminate.
b. Tenant will have no claim to the condemnation award or proceeds in lieu of
condemnation.
5. Construction ofNewlmprovements. It is anticipated that Tenant will, at Tenant's sole
-- cost, construct new improvements on the Premises. Tenant agrees that it will construct no new
improvements until Tenant has presented plans for said improvements to Landlord and Landlord has
approved of such construction. Landlord will not unreasonably withhold approval.
6. Default by Landlord/Events. Defaults by Landlord aze failing to comply with any
provision of this lease within thirty days after written notice.
7. Default by Landlord/Tenant'sRemedies. Tenant's remediesforLandlord'sdef_aultare
to terminate this lease.
8. Default by Tenant/Events. Defaults by Tenant are (a) failing to pay timely Rent, (b)
abandoning or vacating a substantial portion of the Premises, and (c) failing to comply within thirty
(30) days after written notice with any provision of this lease other than the defaults set forth in (a)
and (b) above.
9. Default byTenant/Landlord's Remedies. Landlord's remedies for Tenant's default aze
to terminate this lease by written notice.
10. Default/Waiver/Mitigation. It is not a waiver of default if the nondefaulting party
fails to declare immediately a default or delays in taking any action. Pursuit of any remedies set
forth in this lease does not preclude pursuit of other remedies in this lease or provided by law.
Landlord and Tenant have a duty to mitigate damages.
ps107/02-300.1/9-26-02
11. Holdover. IfTenant does not vacate the Premises following termination ofthis lease,
Tenant will become a tenant at will and must vacate the Premises on receipt ofnotice from Landlord.
No holding over by Tenant, whether with or without the consent of Landlord, will extend the Term.
12. Alternative Dispute Resolution. Landlord and Tenant agree to mediate in good faith
before filing a suit for damages.
13. Attorney's Fees. If either party retains an attorney to enforce this lease, the party
prevailing in litigation is entitled to recover reasonable attorney's fees and court and other costs.
14. Venue. Venue is in the county in which the Premises aze located.
I5. Entire Agreement. This lease, together with the attached exhibits and riders, is the
entire agreement of the parties, and there aze no oral representations, warranties, agreements, or
promises pertaining to this lease or to any expressly mentioned exhibits and riders not incorporated
in writing in this lease.
16. Amendment of Lease. This lease maybe amended only by an instrument in writing
signed by Landlord and Tenant.
17. Limitation of Warranties. THERE ARE NO IMPLIED WARRANTIES OF
MERCHANTABILITY, OF FITNESS FOR A PARTICULAR PURPOSE, OR OF ANY OTHER
KIND ARISING OUT OF THIS LEASE, AND THERE ARE NO WARRANTIES THAT EXTEND
BEYOND THOSE EXPRESSLY STATED IN THIS LEASE.
18. Notices. Any notice required or pemutted under this lease must be in writing. Any
notice required by this lease 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 lease. Notice may
also be given by regulaz mail, personal delivery, courier delivery, facsimile transmission, or other
commercially reasonable means and will be effective when actually received. Any address for notice
may be changed by written notice delivered as provided herein.
19. Abandoned Property. Landlord may retain, destroy, or dispose of any property left
on the Premises at the end of the Term.
6
ps107/02-300.1/9-26-02
20. Arbitration. Landlord and Tenant agree that, following mediation, all unresolved
issues will be resolved by binding azbitration. Absent an agreement to use other rules, the azbitration
will be controlled by the American Arbitration Association's Commercial Arbitration Rules.
KERR COUNTY TEXAS
r
//
FRED HENNEKE
Kerr County Judge
TEXAS ARTS AND CRAFTS EDUCATIONAL
FOUNDATION
R B. (BOB) NIILLER
Executive Director
7
FIELD NOTES DESCRIPTION FOR 7.18 ACRES OF LAND OUT
OF THE KERR COUNTY AG BARN SITE ALONG STATE
HIGHWAY N0.27 CN KERR COUNTY, TEXAS
Being all of a certain tract or parcel of land containing 7.18 acres, more or less, out of Original Patent Surveys in Kerr County,
Texas as follows:
Survey No. Survey Abstract No. Acres
I10 T. N. Minter 248 4.07
111 Sam Wallace 359 3.1 I
part of a certain 116 acre tract conveyed from the United Slates of America to the Texaz Hill Country Development Foundation,
Inc. by a Warranty Deed executed the 30'" day of August, I9SS and recorded in Volume 98 at Page 588 of the Deed Records of
Kerr County, Texas; and being more particularly described by metes and bounds az follows:
BEGINNBNG at a fence cornerpost in the southwest rightof--way line of Stale Highway No. 27 where it intersects the northwest
line of said 116 acre tract and southeast line of a certain 6.38 acre tract conveyed from the United States of America to the
American Legion by a Deed executed the 29'" day of October, 1930 and recorded in Volume S2 at Page 612 of the Deed Records
of Kerr County, Texas for the north comer of the herein described tract; which point bears, approximately 296 ft. 5.17°44'W. and
62 ft. S.S2°35'W. from a northerly wrner of 116 acre tract;
771ENCL', upon, ovcr and across said I IG acrc lracl with the said southwcsl righlof--way lint of Slatc Ilighway No. 27
S.48°31'S7"E., 770.78 ft. to a %:" iron stake se[ for the east corner of the herein described tract;
'~?NCE, continuing upon, over and across said 116 acre tract: S.41°28'03"W., 204.18 ft. to a '/:" iron stake set for an eazterly
t....ner of the herein described tract; N.48°3l'S7"W., 99.73 ft. to a '/:" iron stake set for a reentrant comer of the herein described
pact; and S.40°S8'06"W., 338.86 ft. to a'/~' iron stake set in the northeast right-of--way line of Riverside Drive, a county road for
the south comer of the herein described tract;
THENCE, continuing upon, over and across said 116 acre tract with the northeast right-of--way line of Riverside Drive:
N27°26'40"W., 302.16 ft. to a set f." iron stake; N.31°08'53"W., 387.48 ft. to a set'h" iron stake; and N.37°10'32"W., 83.35 ft. to
a fence cornerpost in the northwest line of I i6 acre tract for the west comer of the herein described tract and south comer of said
6.38 acre tract ,
11iENCE, along a fence with the common line between said 116 and 6.38 acre tracts N.52°3S'39"E., 307.92 ft. to the PLACE OF
BEGINNING.

,. _ EXHIBIT "A"