§ 8-2. Authority of Chief Administrative Officer to lease real estate; terms and conditions of lease.

(a)

No City-owned real estate shall be leased, whether at-will or otherwise, for a period of longer than 90 calendar days unless the terms of such lease have first been approved by an ordinance adopted by the Council. The Mayor may introduce an ordinance to direct the Chief Administrative Officer to execute such a lease for specific City-owned real estate. The Chief Administrative Officer is hereby authorized to lease, for a period of no longer than 90 calendar days, real estate owned by the City or any part thereof not devoted to and not immediately needed for public use, upon the following terms and conditions:

(1)

The tenants shall pay rent to the City for the use and occupancy of each parcel at an annual rate commensurate with the fair rental value of the parcel or otherwise as determined by the Chief Administrative Officer, which shall be due and payable monthly in advance.

(2)

The tenants shall have exclusive possession of the real estate, except that the Chief Administrative Officer, or a designee thereof, shall have the right to enter such real estate at any time for the inspection thereof or for making such repairs to or alterations of any buildings or structures on the real estate, as the Chief Administrative Officer may deem advisable. However, the City shall not be obligated to maintain, repair or replace any building or structure or any fixture, equipment or facility which may be on or used in connection with the use of the real estate or any part thereof.

(3)

The tenants shall maintain the real estate in good order and state of repair and shall make such repairs thereto as shall from time to time be required by the Chief Administrative Officer or an authorized representative.

(4)

The tenants shall provide at their cost and expense all services required for their use and occupancy of the real estate, and the City shall not be obligated to provide for such services. However, where a single parcel of real estate is being leased to two or more tenants and such real estate has only one water, gas or electric meter or only one heating system, the Chief Administrative Officer is authorized to pay for the services where there is only one water, gas or electric meter or only one heating system and then to prorate the costs of the services between the tenants involved and add the net costs of the services to the fair rental value of the parcel as determined by the Chief Administrative Officer under subsection (a)(1) of this section.

(5)

The tenants shall remove all of their property from the real estate, including that attached to the freehold, upon the termination of the lease. Upon the tenants' failure, refusal or neglect to do so, the Chief Administrative Officer, or a designee thereof, may remove such property from the real estate at the cost and expense of the tenants, without liability to the tenants for damages that may directly or indirectly result therefrom, or may allow such property to remain on the real estate, and fee simple title to the property shall vest in the City.

(6)

The tenants shall not transfer or assign the lease nor sublet the real estate or any part thereof without the approval of the Chief Administrative Officer.

(7)

The tenants shall surrender possession of the real estate to the City upon termination of the lease and shall leave the premises in the same or as good condition as when entered upon, damage beyond the control of the tenants and reasonable wear and tear excepted.

(8)

The tenants shall indemnify, keep and hold the City free and harmless from liability on account of injury or damage to themselves and others in person or property growing out of the making of the lease and their use and occupancy of the real estate. If suit shall be brought against the City, either independently or jointly with the tenants on account thereof, the tenants will defend the City in any such suit; if a final judgment is obtained against the City, either independently or jointly with the tenants, the tenants will pay such judgments with all costs and hold the City harmless therefrom.

(9)

The tenants shall waive the benefit of the homestead exemption laws of the state as to all obligations created under the lease and shall agree to pay all expenses incurred in collecting the obligations, including 20-percent attorney's fees if the obligations shall not be paid when due.

(10)

The use and occupancy of the premises by the tenants shall be at the will of either of the parties to the lease and may be terminated by the Chief Administrative Officer or an authorized representative or by the tenants at any time upon due notice. Upon the termination of the lease by the City, the tenants shall be refunded the rent paid for the remainder of the month from the day such termination becomes effective.

(11)

Whenever any building or structure which is a part of the real estate is rendered untenable by reason of force majeure, the lease, without more, shall terminate.

(b)

For each lease entered into pursuant to the provisions of subsection (a) of this section for which the terms of such lease have not first been approved by an ordinance adopted by the Council, the following conditions shall apply:

(1)

Within five working days after the execution by the Chief Administrative Officer of such a lease, the Chief Administrative Officer shall cause a complete copy of such executed lease to be delivered to each member of the council, which delivery may be by electronic means.

(2)

No such lease shall be extended for a total of more than 30 additional calendar days until the Council has adopted a resolution approving the extension, which resolution must contain the location of the leased premises, the name of the tenant, the original duration of the lease, the duration of the extension, and the amount of rent.

(3)

Once such a lease has terminated, the tenant shall not be deemed to hold over, and no lease for the same premises to the same tenant may have a term commencing less than 90 calendar days after such termination unless the terms of such lease have first been approved by an ordinance adopted by the Council.

(4)

Whenever the Council determines that real estate leased by the Chief Administrative Officer pursuant to subsection (a) of this section where the terms of such lease have not first been approved by an ordinance adopted by the Council or real estate leased pursuant to an at-will lease is needed for public use, the Chief Administrative Officer shall cause such lease to be terminated and the real estate devoted to that public use for which the council has determined it is needed. The Council's determination shall be expressed by the adoption of a resolution.

(c)

Notwithstanding any other provision of law to the contrary, Bandy Field Park, Lewis G. Larus Park, Crooked Branch Ravine Park and city-owned real estate that has been designated as part of the James River Park System shall not be leased for any purpose that would result in or involve any development of any part of these public parklands.

(Code 1993, § 8-2; Code 2004, § 26-2; Ord. No. 2004-360-330, § 1, 12-13-2004; Ord. No. 2005-283-271, § 1, 12-12-2005; Ord. No. 2009-220-2010-8, § 2, 1-25-2010; Ord. No. 2014-205-2015-32, § 1, 2-23-2015)

(Code 1993, § 8-2; Code 2004, § 26-2; Ord. No. 2004-360-330, § 1, 12-13-2004; Ord. No. 2005-283-271, § 1, 12-12-2005; Ord. No. 2009-220-2010-8, § 2, 1-25-2010; Ord. No. 2014-205-2015-32, § 1, 2-23-2015)