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H1. Res 6289, Kalispell Youth Athletic Complex Renaming 201 1st Avenue East Kalispell, MT 59901 Phone: (406) 758-7700 REPORT TO: Honorable Mayor Johnson and City Council FROM: Jarod Nygren, Interim City Manager SUBJECT: Kidsports Complex Naming Request DATE: September 2, 2025 BACKGROUND: At the July 28, 2025, work session, Council discussed a request from Kidsports representatives to consider renaming the “Kidsports Youth Athletic Complex” to “Dan Johns Kalispell Youth Athletic Complex” in recognition of the efforts of Dan Johns in the development of the facility. Following discussion, there was consensus that a renaming effort was warranted, and a Resolution has been prepared for your consideration. RECOMMENDATION: It is recommended that the Council consider and pass Resolution 6289, a Resolution renaming the “Kidsports Youth Athletic Complex” to “Dan Johns Kalispell Youth Athletic Complex” in recognition of the efforts of Dan Johns in the development of the facility. ALTERNATIVES: Upon consideration of the proposal the Council may reject the resolution. ATTACHMENT: Resolution 6289 August 11, 2016 Kidsports Letter 1997 Lease Agreement 2014 Memorandum of Understanding RESOLUTION NO. 6289 A RESOLUTION RECOGNIZING THE CONTRIBUTION OF DAN JOHNS TO THE CITY OF KALISPELL YOUTH, AND DESIGNATING THE KALISPELL YOUTH ATHLETIC COMPLEX AS THE “DAN JOHNS KALISPELL YOUTH ATHLETIC COMPLEX”. WHEREAS, Dan Johns has been instrumental in the formation and ongoing success of the Kidsports Complex; and WHEREAS, the following members of the Board of Directors of Kidsports have voted unanimously in favor of this Resolution: Roy Beekman, Justin Sliter, Mike Rauthe, Patrick Gulick, Rob Riley and Steve Herzog; and WHEREAS, Dan Johns has stated he would not oppose this Resolution. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL, AS FOLLOWS: SECTION 1. That the Kalispell Youth Athletic Complex (KYAC or Kidsports), is hereby renamed the Dan Johns Kalispell Youth Athletic Complex in recognition of Mr. Johns’ role in the creation and success of the Kidsports Complex. SECTION 2. That the Mayor shall by this Resolution be authorized and directed to issue a Proclamation of the City of Kalispell designating and dedicating said Complex as the Dan Johns Kalispell Youth Athletic Complex. SECTION 3. This Resolution shall take effect immediately upon passage by the City Council and approval by the Mayor. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL, THIS 2ND DAY OF SEPTEMBER, 2025. _________________________ Mark Johnson Mayor ATTEST: ___________________________ Aimee Brunckhorst, CMC City Clerk kith &sports BulLE’IHc THE DREAM TOGETHER FoR THE YOUTH OF FIATHEAD VALLEY August 11,2016 Mayor Mark Johnson 201 istAve.East Kalispell,MT 59901 City Manager Doug Russell 201 Ave.East Kalispell,MT 59901 Dear Sirs, This letter is to serve notice of resolution to change the name of the current Kidsports Complex to Dan Johns Kidsports Complex. Whereas:Dan Johns has been instrumental in the formation and ongoing success of the Kidsports Complex. Whereas:The following members of the Board of Directors of Kidsports have voted unanimously in favor of this resolution;Roy Beekman,Justin Sliter,Mike Rauthe, Patrick Gulick,Rob Riley and Steve Herzog. Whereas:Dan Johns has stated he would not oppose this resolution. Thank you for your consideration of this resolution.If you need further information,feel free to contact any of the Kidsports Board of Directors. Sincerely, Roy Beekman Kidsports Vice-president Roy Beekman 182 Morning View Drive Kalispell,MT 59901 756-0152 beekmanroygmail.com P.O.L’,ox I 205 •KAIlsI’I:II,,MT 5’-)903 •-maiI:kidsportstIan.oni AGREEMENT AGREEMENT entered into this I day of r tr , 1997, between the City of Kalispell, Montana, and Kidsports, a Montana not -for -profit corporation. Recitals 1. Kalispell is party to a lease agreement with the Montana Department of State Lands, Lease No. 3053189, dated July 17, 1997 (hereafter "Lease"). A copy of said lease is attached to this Agreement as Exhibit A. 2. Pursuant to said lease, Kalispell has leased approximately 138 acres located immediately north of its city limits for a period of 40 years. The property will be developed as a youth athletic complex, and may include additional recreational improvements. 3. Kidsports was formed to represent the combined interests of user groups of the athletic field complex in the planning, development, financing, operation and maintenance of the improvements. NOW THEREFORE, the parties agree as follows: 1. Purpose. The purpose of this Agreement is to define the public -private partnership between Kalispell and Kidsports regarding the planning, development, financing, operation and maintenance of the real property described in Exhibit A as a youth athletic complex. Both parties are committed to the development of youth athletic facilities that will provide opportunities for youth to develop through wholesome physical activity. In an effort to accomplish these objectives, the parties agree to work toward this common goal in a manner that permits quality development while recognizing the financial responsibilities of each. 2. Term. This Agreement shall be effective the day and year first above written, and shall continue through the duration of the Lease attached as Exhibit A, unless sooner terminated. 3. Funding. Kalispell will provide One Million Dollars ($1,000,000.00) toward the planning and development of the athletic complex. These funds will come from the sale proceeds of property commonly known as the Haven baseball fields and Daley softball and baseball fields. The Haven fields are sold and the transaction closed on July 15, 1997, and a portion of the Daley fields are proposed to be sold for a Rosauers grocery. Priority on use of these funds shall be to replace athletic fields displaced as a result of the sale of Haven and/or Daley fields. The parties agree it is their intention that proceeds from sale of the Haven and Daley fields will first be committed toward the complex, rather than an alternative use(s), until the City's total commitment has been acquired, and that funds will first be spent on the development described in the Summary Design Review, dated January, 1997. Kalispell and Kidsports may agree in writing to alter this planning and development requirement. Funds spent by Kalispell on Four Mile Drive or its intersection with U. S. Highway 93 North will not come from the funds dedicated by it towards the complex, but shall be in addition to the $1 million commitment (the Summary Design Review states that upon annexation of the leased property gas tax revenues are intended to finance these road improvements). 4. Lease Payments. While the Lease pertains to a total of 138 acres, annual lease payments are based upon the actual number of acres dedicated for complex use. Presently, approximately 80 acres are committed to development and the lease payment is calculated based on those acres. Upon acceptance of construction bids by the Kalispell City Council (the annual lease payment for that year will be prorated as of the date of acceptance) and continuing through February 28, 2017, Kidsports will pay to Kalispell the annual lease payment required by Exhibit A for the acreage presently set aside for complex development, and Kidsports will also pay lease payments during said term for additional property that is developed for use by a group(s) under contract with it for user fees, etc. Each annual lease payment shall be paid by Kidsports to Kalispell on or before the first day of March, with the first payment due within 90 days of Kalispell's acceptance of construction bids. Kidsports' obligation to make lease payments is contingent on Kalispell doing the following: (1) using its best efforts to accomplish sale of the fields as described in paragraph 3; (2) completing construction and other documents related to development of the athletic field complex pursuant to the agreement entered into between Kalispell and the design/engineering team headed by Carver Engineering; (3) in the event use of all or any of the Daley softball, baseball and/or soccer fields is discontinued prior to completing replacement fields at the complex, Kalispell will provide suitable (e.g. regulation size, good playing surfaces, fences, dugouts, backstops, etc.) interim replacement fields (the cost of providing replacement fields will not reduce the City's $1 million commitment to planning and development of the complex); (4) not delaying development of any portion of the youth athletic field complex, either through action or inaction; and (5) not breaching this Agreement. Notwithstanding the foregoing, in the event the entire $1 million is not available for development of the complex or, if available, has not been spent or contracted to be spent, by December 31, 1998, Kidsports annual lease payment obligation shall be reduced to the same percentage of the total annual lease payment as spent and contracted funds are to the $1 million. Beginning with the annual payment due on March 1, 2017, Kidsports' contribution toward the annual lease payment shall be adjusted as follows: Kidsports will pay that percentage of Kalispell's annual lease payment that is the same as the percentage of real property dedicated to the user groups under agreement with Kidsports is to the total acreage under lease. For example, if the Kidsports' groups use 70 acres, Kidsports annual payment will be 70/138 of the total annual obligation. The area considered dedicated to the user groups will include those areas developed for their exclusive use (e.g. playing fields, concession, parking areas, etc.). Initially, those users under agreement with Kidsports include the Greater Kalispell Youth Soccer Association, Kalispell Babe Ruth League, Kalispell Pee Wee Baseball League, and Kalispell Youth Softball Association. 5. User fees. Kidsports may establish fees to be paid to it by users (e.g. associations, tournament participants, individuals, etc.), visitors (e.g. admission fees to events, etc.), advertisers sponsors, fence ads, etc.), or others using or frequenting the complex. Funds raised by Kidsports pursuant to this paragraph may be used toward lease payments and other purposes as Kidsports may determine. The parties recognize that Kidsports and the user groups may engage in fund raising activities (e.g. those just mentioned, plus concession stand sales, etc.), and neither the fund raising activities and the subsequent use of those funds are subject to this Agreement. Kalispell may charge fees to persons or groups not charged fees by Kidsports. City of Kalispell fees on persons or groups charged fees by Kidsports will be implemented only by the joint concurrence of Kalispell and Kidsports. It is anticipated that these fees will be utilized only for maintenance or improvement of the complex, and will not be eligible for recreation programs or any other facilities under the jurisdiction of Kalispell's Parks and Recreation Department. If a user, or prospective user disagrees with fees established by Kalispell or Kidsports, representatives of Kalispell and Kidsports will confer and agree upon an appropriate fee. Nonpayment of a user fee may be grounds for denial of use of the complex. 6. Development Responsibilities The parties recognize that the initial funding furnished by Kalispell will not be sufficient to complete development of the youth athletic complex, and that Kidsports will be responsible for portions of the development. Throughout the term of this Agreement, Kalispell and Kidsports will meet for the purpose of deciding each party's development responsibilities. An addendum will be appended to this Agreement which sets forth Kalispell's planning and development activities from its initial funding. Kidsports agrees that its development activities will be consistent with the construction documents and it will maintain liability insurance covering its construction activities which names Kalispell as a covered party. User groups will also maintain liability insurance for their athletic activities which also names Kalispell as a covered party. Coverage amounts will not be less than $1 million or more than $1.5 million per occurrence unless the parties agree otherwise. Businesses performing development activities at the complex at the request of Kidsports must also maintain general liability insurance coverage consistent with Kalispell's normal requirements, as well as workers compensation coverage on its employees consistent with State law. At a minimum, representatives of Kalispell and Kidsports will meet at least once annually for the purpose of conferring about the complex and this Agreement. 7. Maintenance and Repair Responsibilities. Improvements at the complex are to be maintained in new condition, less reasonable wear and tear. It is the intent of the parties that the improvements not deteriorate through misuse or lack of attention, maintenance, or repair. The following maintenance and repair activities are the responsibility of Kidsports, or third parties to whom they may be assigned: a. electric and telephone utilities (including usage charges) b. concessions stands and restrooms (including metered water fees - irrigation water will not be metered) c. game preparation of playing fields d. fan seating e. temporary fencing f. maintaining clean grounds Other responsibilities may be undertaken by Kidsports as it and Kalispell may agree. Kalispell is responsible for the following maintenance and repair activities: a. athletic fields, including turf b. roads and parking areas c. sewer, potable and irrigation water distribution systems, well (including casing, pump and panel) d. ground cover (non -turf) e. permanent fencing f. trash collection g. winterizing water systems Other responsibilities may be undertaken by Kalispell as it and Kidsports may agree. 8. Modification. This Agreement may be modified by the parties by a written document signed by authorized representatives of both Kalispell and Kidsports. 9. Mediation; Termination. In the event either party fails to perform its obligations under this Agreement, the other party may give written notification of the default in writing. The parties shall meet and confer with the intent of resolving the default, but in the event the default is not cured, or reasonable efforts are not underway to correct the default (in the opinion of either party), the dispute shall be submitted to mediation. In the event the parties are not able to agree upon a mediator, a mediator shall be appointed pursuant to the rules and regulations of the American Arbitration Association. The expenses of the mediator shall be shared equally by the parties. The parties may mutually agree to terminate this Agreement in writing at any time. 10. Lease Termination. Upon termination of the Lease (Exhibit A or its successor), any compensation paid by the Lessor will be pro rated between Kalispell and Kidsports based' on the value of each party's construction improvements at the complex. During the term of this Agreement, Kalispell and Kidsports will maintain, and provide a copy to the other party, its list of construction improvements which includes the actual cost or fair market value thereof at time of construction. The Lessor's payment will be prorated based on the aforementioned lists. 11. Miscellaneous. a. The policies and activities of users under Agreement with Kidsports are the responsibility of the various individual user groups, and not Kalispell or Kidsports, provided that Kidsports' agreements with user groups will include language requiring the groups' policies to comply with applicable laws. b. The scheduling of activities at the complex will be the responsibility of the individual user groups. Kalispell may schedule activities at the complex which do not conflict with the affected user group's scheduled activity, provided that Kalispell will first check with the user group before scheduling its activity. Kalispell will not schedule any activity which is not compatible with the improvements or which may damage or degrade the complex. c. Kidsports, and the user groups, may place informational and advertising signs at the complex, provided that all signs must be maintained in good physical condition and approved by the Kalispell's Parks Director as to appearance and location prior to installation. The parties recognize that advertising signs at athletic facilities are sources of revenue for the user groups, and that it is their intent to permit tasteful advertising signs throughout the term of this agreement. d. Improvements affixed to the real property may not be removed without Kalispell's approval. e. Greater Kalispell Youth Soccer Association, Kalispell Babe Ruth League, Kalispell Pee Wee Baseball and Kalispell Youth Softball Association, including their successors and assigns, are recognized by the parties as third party beneficiaries to the terms and provisions of this Agreement, including any amendments thereto. IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first above written. City of Kalispell, Montana Clarence Krepps, Cit Manager Attest: gjr C q .q Ac-- City Clerk ULV Kidsports, Inc. t L(L - Daniel D. Johns, sid nt Attest: 4 r J----'-- Secretary between CITY OF KALISPELL A Montana Municipal Corporation and IDSP®TS A Montana Charitable Corporation without Members 1. Purpose and Scope The purpose of this Memorandum of Understanding [MOU] is 1) to describe the relationship between the City of Kalispell [the City] and Kidsports subsequent to the City acquiring a permanent easement from the State of Montana Department of Natural Resources and Conservation [DNRC] for a major portion of the real property leased by the City and developed by Kidsports as a youth sports complex [Complex]; 2) address future development of facilities at the Complex, including sports fields, parking, transportation and other accessory uses and amenities; 3) address financial responsibilities of the parties with respect to the development and maintenance of the Complex; and 4) maintain the positive, constructive working relationship between the City and Kidsports. 2. Recital of Facts A. The City entered into a special lease of state lands under MT State Agreement No. 3053189 on May 9, 1997 for the term of 40 years. The lease included approximately 138 acres located in the City of Kalispell in the SE1 /4 of Section 36; an area bounded by Four Mile Drive (south), Highway 93 (east), and Reserve Loop (north). The sole purpose of the lease was to develop a youth athletic complex on the property. B. The City and Kidsports entered into an Agreement on December 19, 1997 for the same term as the above described lease that defined "the public - private partnership between Kalispell and Kidsports regarding the planning, development, financing, operation and maintenance" of the above - described property. C. The City and Kidsports successfully negotiated with DNRC for the City to exchange a portion of the leasehold interest in the above - described property for a permanent easement that preserves existence of the Complex in perpetuity. The City and DNRC will execute a Second Supplemental Lease Agreement addressing that portion of the leased premises not converted to a permanent easement. The Grant of Easement No. D- 14505, dated March 18, 2013, was received by the City and is attached hereto as Page 1 of 9 Exhibit "A." Among other things, it delineates the revised footprint for the Complex. The Second Supplemental, Lease Agreement, when signed, will be attached to this MOU as Exhibit "B." The Initial Term of this MOU is 20 years commencing upon the execution by both parties. The parties agree to meet and discuss additions, corrections and modifications to this MOU at the request of either party. In addition, on each fifth anniversary date from the effective date of the MOU, Section 10 shall be reviewed and the parties may agree to change the contribution paid by Kidsports to the City to assist with maintenance costs at the Complex. This agreement may be extended for additional periods of five years each upon such terms as the parties agree. Should either party desire not to extend the agreement written notice shall be provided to the other party not fewer than ONE HUNDRED TWENTY 120) days prior to expiration of this MOU, detailing the reasons behind the decision not to extend the agreement. The other party shall have the opportunity to respond and the parties agree to engage in good faith discussions regarding the concerns of the non- renewing party and agreeing on a successor agreement. Should the City elect not to extend this agreement or the permanent easement extinguish as the result of action or inaction by the City, the City shall pay Kidsports and each member of the User Group the appraised value of permanent improvements it or they made to the Complex, so long as the User Group(s) no longer has access to these improvements upon terms substantially similar to those set forth in the MOU due to action by the City. The City and Kidsports or the User Group shall each hire, at their own expense, an appraiser to determine the fair market value of the improvements. If the two (2) appraisals do not differ by more than three (3%), the fair market value of the improvements at the then existing usage shall be the average of the two (2) appraisals. If there is a difference of more than three percent (3%) between the two (2) appraisals, the first two (2) appraisers shall select a third appraiser, who shall appraise the fair market value of the improvements at the then existing usage. The parties shall equally share the expense of the third appraiser. The average of the three (3) appraisals shall determine the fair market value of the improvements at the then existing usage. The City shall pay the fair market value of the improvements at the then existing usage to Kidsports or the User Group within sixty (60) days of the date of determination of the fair market value as set forth above. The City may deduct from the appraised value of any improvement it is reimbursing Kidsports for the amount of money it paid or contributed directly toward construction or installation of the improvement (i.e. does not include money spent by the City maintaining the improvement). 4. Master Plan of Complex Page 2 of 9 The parties agree that master plans of the Complex have evolved since 1997, and they will continue to evolve. The parties agree that the current master plan will be amended to reflect the revised footprint of the Complex, and that it will be further amended as additional phases are planned and developed. After development at the Complex is completed, a final master plan will be prepared that will include all athletic fields and associated infrastructure (e.g. fencing, irrigation, storm water conveyance, sanitary sewer, electric, telephone and gas utilities, concession and storage facilities, restrooms and seating, etc.), roadways, both inside the Complex and in the immediate vicinity and leading to the Complex, and parking. Representatives of the parties shall meet periodically to discuss and agree upon future modifications to the master plan, which shall be subject to the review and approval by the governing bodies of the parties. The parties acknowledge that past master plans have been prepared by a third party and they further agree that a third party planner approved by both parties may be used to assist with future master planning. 5, City's Responsibilities The City shall be responsible for the following: a) Maintaining and repairing: i. All athletic fields, including turf ii. All landscaping iii. All access roads, internal roads and parking areas iv. Sewer, potable and irrigation water distribution systems V. All non -turf ground cover vi. All permanent fencing vii. Trash collection viii. Winterizing all water systems ix. Game preparation of all fields b) The parties agree that the improvements at the Complex are presently in optimal condition, and it is the intent of the parties that the present quality of the Complex be maintained and not deteriorate as the result of misuse, or the lack of attention, maintenance or repair. Both parties agree that the responsibilities outlined in this agreement are intended to prevent the deterioration of the facility through normal wear and to maintain the facility and its improvements as a top - quality complex that provides recreational opportunities for the community's youth and also serves as an attraction and destination for regional and state competitions. In performing its responsibilities as described above, the City has and will continue in the future to: (1) mow grass areas as needed, usually 1 or 2 times per week during the grass growing seasons; (2) string trim grass areas that are not mowed on the same schedule as mowing: (3) Page 3 of 9 fertilize grass as needed, usually 2 or 3 times annually: (4) aerate grass areas as needed, usually 1 or 2 times annually; (5) thatch grass areas as needed, usually once a year; (6) apply pesticides to grass areas as needed, usually once every three years; (7) maintain (e.g. water, feed, mulch, prune, etc.) tress and perennial plantings; (8) maintain and repair access and internal roads, and parking areas; (9) garbage pick- up; (10) summarize and winterize the irrigation systems and pumps, concession stands and bathrooms; and (11) paint field boundary lines on grass playing surfaces. c) The City shall comply with the terms of the permanent easement appended hereto as Exhibit A, and Second Supplemental Lease appended as Exhibit B. 6e Kidsports' Responsibilities Kidsports shall be responsible for the following: a) Kidsports shall be the developer of the Complex and shall be responsible for the placement and construction of the improvements in accordance with the master plan. b) Kidsports will maintain liability insurance coverage during construction activities, which shall name the City as an additional insured party. c) Kidsports shall advise each User Group that the City requires that they maintain liability insurance for their athletic activities which also names the City as an additional named insured. d) Coverage amounts for the liability insurance policies obtained by Kidsports and each User pursuant to this paragraph 6 will not be less than 750,000 per occurrence or less than $1.5 million aggregate and shall be written on a "primary— noncontributory basis." Subject to availability, each coverage shall be obtained from an insurance company that is duly licensed and authorized to transact insurance business and write insurance within the state of Montana, with a minimum of "A.M. Best Rating" of A- VI. The purpose of this coverage is to protect the City, its officers, employees, agents, and representatives from claims for bodily injury and /or property damage which may arise from construction activities or conduct of program activities by the Users. Proof of insurance coverage shall be submitted annually to the City's Parks and Recreation Director. e) Kidsports shall have primary responsibility for: i. Development of improvements at Complex consistent with master plan, as amended, ii. Purchase of all playground equipment Page 4 of 9 iii. Cost of delivering all electric and telephone utilities inside Complex iv. Maintaining all concession stands and restrooms (not including winterizing or summarizing) V. All metered water charges (not including irrigation) for concession stands/restrooms vi. All temporary fencing vii. Maintaining clean ground viii. Replace netting (e.g backstops, goals, etc.), benches and grandstands ix. Replacing the artificial surface at the Miracle Field f) It is the intent of the parties that the improvements not deteriorate through misuse, or lack of attention, maintenance, or repair. The parties agree that the improvements at the Complex are presently in optimal condition, and it is the intent of the parties that the present quality of the Complex be maintained and not deteriorate as the result of misuse, or the lack of attention, maintenance or repair. Both parties agree that the responsibilities outlined in this agreement are intended to prevent the deterioration of the facility and its improvements through normal wear and to maintain the facility as a top-quality complex that provides recreational opportunities for the community's youth and also serves as an attraction and destination for regional and state competitions. g) Kidsports may assign or contract one or more of the above responsibilities in subparagraph 6(e) above to third parties (e.g. User Group, etc.). h) Kidsports shall comply with the terms of the permanent easement appended hereto as Exhibit A, and Second Supplemental Lease appended as Exhibit B. i) Kidsports shall submit to the City the Public Copy of the 990 annual financial report. 7. Funding The City paid to acquire the permanent easement described in paragraph 2 above. Following execution of this MOU, Kidsports agrees to maintain and/or undertake capital campaigns to raise an amount of money that will be equal to or greater than the amount paid by the City to DNRC for the permanent easement. Funds received by Kidsports in consideration for releasing acreage from the lease, described in paragraph 2(c), shall be used for improvements to the Complex consistent with the master plan, as amended, and will be applied towards its capital campaign requirements as described in the preceding paragraph. Page 5 of 9 It is further agreed that Kidsports will undertake additional fund-raising activities for the purpose of developing the Complex consistent with future master plans. 8. User Fees. Kidsports has agreements with providers of youth athletic programs at the Complex. Those providers are referred to throughout this MOU as User Group and User(s). When User Groups begin using the complex more than three times in a one month period, , additional agreements will be generated between the providers and Kidsports. The agreements between Kidsports and the User Group define their relationship and, among other things, describe fees to be paid to Kidsports by the User Group. Kidsports will advise the City of its success or failure to obtain agreement with new or existing User(s), which may result in denying use of the Complex to the User(s) with whom agreement has not been reached. Kidsports and/or the User Group may charge fees to visitors to the Complex (e.g, admission fees to events, etc.), advertisers (sponsors, fence ads, etc.), and others using or frequenting the Complex (e.g. associations, tournament participants, individuals etc.). Funds raised by Kidsports and/or the User Group may be used to further their purposes. The parties recognize that Kidsports and the User Group engage in fund raising activities e.g. those just mentioned, plus registration fees, concession stand sales, tournament entry fees, etc.) to conduct their activities, and neither the fund raising activities of Kidsports or the User Group, nor the subsequent use of those funds, are subject to this MOU. The City may charge fees to persons or groups not charged fees by Kidsports or the User Groups. The City will only charge fees to persons or groups charged fees by Kidsports or the User Group if mutually agreed to in advance by the City and Kidsports. It is anticipated that fees charged by the City will be utilized for maintenance or improvements at the Complex, and will not be eligible for recreation programs or any other facilities under the jurisdiction of the City, including its Parks and Recreation Department. If a user or prospective user disagrees with fees established by the City or Kidsports, representatives of the City and Kidsports will confer and agree upon an appropriate fee. Nonpayment of a user fee that is assessed consistent with this paragraph may be grounds for denying use of the Complex. 9. Activities Kidsports and the User Group have priority for scheduling activities at the Complex. The City may schedule activities at the Complex that do not conflict with activities scheduled by Kidsports or the User Group, and the City shall ensure that no conflict exists before scheduling activities at the Complex. No party shall schedule activities that threaten to damage or compromise the Complex. Page 6 of 9 Kidsports and the User Group shall solely be responsible for establishing and maintaining rules and regulations concerning the activities they conduct at the Complex, provided those activities shall comply with applicable park rules and regulations, laws and ordinances. 10. Maintenance Fees Kidsports shall submit an annual amount, as identified in Exhibit C of this agreement to the City of Kalispell by June 30th each year to offset a portion of the maintenance costs identified in Section 5. Kidsports and the City agree to meet during the annual budgeting process of the City to assess maintenance activities for the upcoming year and to identify potential activities that may require attention. During the term of this agreement, Kidsports shall not reduce the rates charged to User Groups without receiving the prior written consent of the City. Kidsports may, however, during this term, increase the rates charged to User Groups without receiving consent of the City. If, pursuant to section 3 above, the City elects not to extend this MOU, it shall not increase rates charged to user groups more than 5% annually unless by agreement with the user groups. 11. Lease Payment Kidsports shall reimburse the City in the event the City becomes obligated to pay any lease payment for property not currently part of the permanent easement, but is part of the property under use of Kidsports. Reimbursement to the City by Kidsports for a lease payment shall be credited against the maintenance fee set forth in paragraph 10 above. 12. Independent Contractor The parties agree and acknowledge that the City and Kidsports are independent entities. In the performance of this MOU and the completion of its development responsibilities hereunder, Kidsports shall render services as an independent contractor and not as the agent, representative, subcontractor, or employee of the City. The parties further agree that all individuals and companies retained by Kidsports will not be the agents, representatives, subcontractors, or employees of the City. In turn, the City shall solely be responsible for meeting legal obligations with respect to its employees, contractors, agents and representatives. 13. 'Third -Party Beneficiaries Page 7 of 9 10 nu The parties acknowledge that Kidsports, in addition to primarily being responsible for development of the Complex, may conduct limited athletic activities (e.g. Miracle League, etc.). The youth sports programs presently occurring at the Complex are conducted by Kalispell Pee Wee Baseball League, Inc., Kalispell Babe Ruth League, Inc., Kalispell Youth Softball Association, Flathead Soccer Club, Flathead Little Guy Football, and Kalispell School District 5, or their successors (individually and collectively called the "User(s)" and "User Group"). Kidsports also functions as a liaison between the User Group and City. Kidsports will give written notification to the City of changes or additions to the User Group. The parties agree that the Users are third-party beneficiaries of this MOU, and they may rely upon and enforce this MOU. Modification and Termination a) In the event either party fails to perform its obligations under this MOU, the non-defaulting party may give written notification of the default to the other party. The parties shall meet and confer with the intent of resolving the default, but in the event the default is not cured, or reasonable efforts are not underway to correct the default (in the opinion of either party), the dispute shall be submitted to mediation. In the event the parties are not able to agree upon a mediator, a mediator shall be appointed pursuant to the rules of the American Arbitration Association. The expenses of the mediator shall be shared equally by the parties. b) Any and all amendments must be made in writing and must be agreed to and executed by the parties before becoming effective. c) This MOU may be terminated in writing by the parties at any time. Effective Date and Signature This MOU shall be effective upon the signature of the City and Kidsports authorized officials, and shall remain in effect until terminated as provided herein. The City and Kidsports indicate agreement with this MOU by their signatures. Signatures and dates Authorized Signtffi_ire_))f the City ff,V6g' Ru§,s`&II, City Manager Date Page 8 of 9 Authorized Signature of Kidsports Date Formula for Calculating Annual Maintenance Payments due June 30ofeach year. l. In determining Kidsports annual contribution b` maintaining the Complex, the base amount shall be considered tobc50%of gross receipts that Kidsports receives from user fees during each calendar year. This remittance, however, will bureduced based upon the capital investment ofKidoyoda and Users into the Complex during the prior calendar Amount of Capital Investment by Kidsports Maintenance fee remittance for the following year so to $99,999 50% of gross receipts from user fees 100,000 to $299,999 35% of gross receipts from user fees 300,000 and above 20% of gross receipts from user fees The annual maintenance fee payment set forth above will be reduced bvthe amount of any lease payment paid by Kidsports to the City as reimbursement for payments made to the State of Montana by the City. Page 9 of 9