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E6. Legion Baseball Assoc. Sub Lease AgreementCITY OF KALISPELL Memorandum To: Jarod Nygren, City Manager From: Chad Fincher, Parks, and Recreation Director Subject: Kalispell Lakers Sub -Lease Meeting Date: April 20, 2026 Background: The City of Kalispell entered into a 20-year lease agreement with the Kalispell Legion Baseball Association (KLBA) for the use and management of City -owned baseball facilities commonly known as Griffin Field and Archie Roe Field, including associated improvements such as the maintenance building, equipment storage areas, and concession facilities in 2011. KLBA is now requesting to sub -lease to the Kalispell Public School District (KPS) for Glacier High's new baseball team. The Master Lease requires City approval for any sub -lease and also requires that the City be a signatory to such agreements. Under the proposed sub -lease, KLBA would allow KPS to use designated portions of the facilitiesspecifically Griffin Field and Archie Roe Field, along with associated amenities such as batting cages, seating areas, restrooms, parking, and field equipment —for the limited purpose of operating high school baseball programs. Use would primarily support Glacier High School varsity and junior varsity baseball teams and related activities. The proposed sub -lease establishes a defined seasonal term, operational responsibilities, and cost -sharing structure. KLBA would remain the primary entity responsible for overall maintenance of the facilities, consistent with its obligations under the Master Lease, while KPS would contribute a base lease payment and assist with routine field preparation activities during its period of use. The agreement also outlines insurance requirements, indemnification provisions, and compliance with applicable laws, including adherence to City ordinances and Montana High School Association regulations. This sub -lease is intended to formalize an operational partnership that expands community use of the City's baseball facilities while preserving KLBA's primary leasehold interests and ensuring alignment with the terms and conditions of the existing Master Lease. Justification: Approval of the proposed Sub -Lease Agreement between the Kalispell Legion Baseball Association, the City of Kalispell, and Kalispell Public School District 5 is justified as it promotes efficient use of existing City -owned facilities while expanding access for community youth athletics. The agreement supports Glacier High School baseball programs without requiring additional City investment, preserves the City's oversight and protections under the Master Lease, and maintains KLBA's primary responsibility for facility management and maintenance. Additionally, it strengthens intergovernmental cooperation, provides a structured and accountable framework for shared use, and ensures the facilities continue to serve a broader public benefit in a fiscally responsible manner. Action Requested: Council is requested to review and approve the proposed Sub -Lease Agreement between the Kalispell Legion Baseball Association, the City of Kalispell, and Kalispell Public School District 5, and authorize the City Manager to execute the agreement on behalf of the City. Fiscal Effects: The proposed Sub -Lease Agreement is expected to have minimal direct fiscal impact on the City of Kalispell. Under the existing Master Lease, the Kalispell Legion Baseball Association remains responsible for the operation and maintenance of the facilities, and this responsibility continues under the sublease. The agreement does not require additional City funding or capital investment. Any lease revenue generated will be retained by KLBA in accordance with the Master Lease structure. Alternatives: As suggested and approved by City Council. Attachments: Kalispell Legion Baseball Association Sub -Lease. cc: Aimee Brunckhorst, Kalispell City Clerk This Sub -Lease Agreement ("Sub -Lease") is made and entered into by and between the Kalispell Legion Baseball Association, a Montana nonprofit corporation ("Sublessor" or "KLBA"), the City of Kalispell, a municipal corporation ("Lessor" or "City"), and Kalispell Public School District 5 ("Sublessee" or "KPS"). The parties are collectively referred to as the "Parties." RECITALS WHEREAS, KLBA is the Lessee of certain real property and baseball facilities commonly known as Griffin Field ("Premises") pursuant to its existing lease ("Master Lease") with the City of Kalispell; WHEREAS, the Master Lease requires City approval for any sublease and grants KLBA primary rights to use and manage the Premises; WHEREAS, KLBA desires to sublease a portion of the Premises to KPS for the purpose of operating high school baseball programs, and KPS desires to enter into such a Sub -Lease; WHEREAS; the City of Kalispell must be a signatory to this Sub -Lease pursuant to the Master Lease. NOW, THEREFORE; in consideration of the mutual promises herein, the Parties agree as follows: AGREEMENT 1. Premises and Use a. Premises: The subleased Premises include only those baseball facilities necessary for high school baseball operations, including: baseball playing surface (Griffin Field and Archie Roe Field, as scheduled) batting cages, bleachers and seating areas, non-exclusive parking lot access, press box, scoreboard, field lights, equipment storage buildings, and restrooms. b. Permitted Users: The users of the Premises for this Sub -Lease shall be the Glacier High School (GHS) baseball teams operating under Kalispell Public School District 5, including varsity and junior varsity baseball teams; their coaches, staff fans, umpires and parent volunteers; and opposing teams' varsity and junior varsity boys baseball teams, their coaches, staff, fans, and parent volunteers. ® Keys to the premises are limited to: GHS coaches and GHS athletic directors. ® Access to and operation of field prep machinery and field lights are limited to GHS coaches and GHS athletic directors. ® Access to and operation of the press box is limited to GHS coaches, GHS athletic directors, and other individuals who have been trained on their use by the Sublessor. ® The Sublessor shall coordinate a walk-through and training prior to the start of the sub -lease to discuss the items above: access, field -prep machinery, field lights, and press -box use. Sublessee participants must include GHS coaches, GHS athletic directors; and any other individuals who may use the equipment and premises during the teen of the lease. Sublessee and Sublessor will jointly create and retain a list of all individuals who have been trained and are authorized to use the equipment and premises. ® Prior to the start of the lease term and again upon its completion, the Sublessor shall coordinate a walk- through of the facility to discuss and document any concerns, damages, or issues. Sublessee participants must include GHS athletic directors. Costs incurred to restore Damage from Sublessee's use will be paid by the Sublessee. It is expressly agreed that Parties intend only for the premises to be returned to the Sublessor at the conclusion of the Sublease in the same condition as it was at the execution of this Sublease. Parties further agree Sublessee will have no obligation to improve the premises beyond its condition at the execution of this Sublease. c. Sublessee's Use: Sublessee, Kalispell Public School District 5, shall use and occupy the Premises only for GHS high school baseball practices, games, and related team activities during the Lease Term, and for no other purpose. Sublessee's use shall not unreasonably interfere with Sublessor's rights under the Master Lease. d. Concessions, Alcohol, and Signage: • Sublessor retains ownership and management of the concessions and may choose to operate them during the high school baseball season. ® The sale, distribution, or consumption of alcohol is strictly prohibited on the premises during the Sublessee's use due to MHSA rules and City of Kalispell's ordinances. ® KLBA retains the exclusive right to sell, manage, install; remove, and maintain all sponsorship and advertising signage on the Premises, including but not limited to outfield signs, scoreboard signs, and any temporary or seasonal displays. KLBA may display such signage during the high school baseball season, provided all signage complies with MHSA rules, Kalispell Public School District 5 policies, City of Kalispell regulations, and the Master Lease. All signage responsibilities —including placement, removal; maintenance, and compliance —shall remain solely with KLBA., ® All Sublessee signage and promotional material must comply with the Master Lease, and shall receive written approval from KLBA and be in compliance with all applicable laws and regulations. e. Compliance: Sublessee shall comply with all federal, state, and local laws, regulations; andfacilitypolicies applicable to its use, including safety and maintenance protocols established by Sublessor or the City of Kalispell. Any violation that materially interferes with Sublessor's operations or exposes Sublessor to liability shall constitute a default. In addition, Sub -Lessee shall fully comply with the requirements of the Master Lease. 2. Sub -Lease Term and Renewal a. Term: This Sub -Lease shall commence on March 16, 2026, and end on May 30, 2026, unless sooner terminated. b. Renewal/Extension: Sublessee may renew this Sub -Lease in additional one -season increments provided that: 1) Sublessee serves written notice on the Sublessor not later than August 15 immediately preceding the high school baseball season for which the renewal would be effective, and 2) Sublessor does not object to the renewal in writing to the Sublessee before August 31 immediately preceding the high school baseball season for which the 2 renewal would be effective. The Parties understand KPS may not be able to play High School baseball in any year that renewal of the sublease is not permitted. All terms and conditions are subject to renegotiation and the final approval of the Lessor in advance of the August 31 deadline. 3. Sub -Lease Payments a. Base Lease Payment (Field Access): Sublessee shall pay Sublessor a total base lease payment of Five Thousand Dollars ($5,000) for the first year of the Sub -Lease, due upon the fully executed agreement. This payment includes access to the fields, batting cages, bleachers and seating areas, non-exclusive parking lot access, field lights, and restroom facilities as described in Section La, together with standard field preparation supplies provided by KLBA in the ordinary course of operations. b. KLBA shall remain the primary provider of field maintenance at the Premises during the Sub -Lease Term. In support of cooperative field operations, authorized GHS coaches and the GHS Athletic Director may operate the KLBA-owned Toro SandPro grooming unit for routine field preparation following practices or games, provided such individuals have received prior training and authorization from KLBA. KLBA shall retain full ownership and operational control of the Toro SandPro. Use of the equipment by Sublessee personnel is limited to individuals trained and approved by KLBA. Operation by unauthorized or untrained individuals shall constitute misuse. KLBA shall be responsible for routine, scheduled, and long-term maintenance of the Toro SandPro, including major service, repairs, and replacement of components resulting from normal wear and tear. Sublessee shall be responsible for damage to the Toro SandPro resulting from misuse, negligence, or operation outside of KLBA training guidelines by Sublessee personnel. Any such damage shall be addressed cooperatively by the Patties, and repair costs attributable to misuse shall be the responsibility of Sublessee. c. Payment Schedule and Default: All rent payments shall be made at the time of sub -lease signing, but no later than February I of the season year that KPS is requesting usage. i.e. March 1, 2026 for the Spring 2026 season. A late payment fee of 5% of the monthly rent shall accrue on any payment not received within ten (10) days of its due date. Failure to pay rent or other sums due within fifteen (15) days after written notice of nonpayment shall constitute a material default. Upon default, Sublessor may terminate this Sub -Lease and recover possession and all unpaid amounts, plus reasonable attorney fees and costs incurred in enforcement. 4. Maintenance and Field Preparation a. Primary Responsibility: KLBA shall serve as the primary provider of field maintenance for the baseball playing surface during the Sub -Lease Tenn. In coordination with KLBA, GHS coaches, staff, and parent volunteers shall assist with routine day-to-day field preparation activities, including field dragging, line painting, and general cleanup associated with practices and games. Use of Sublessor's equipment for these activities shall be limited to individuals who have been trained and authorized in accordance with Section 1(b). Any damage to Sublessor's machinery or equipment resulting from 3 misuse or negligence by Sublessee personnel shall be addressed cooperatively by the Parties, and repair or replacement costs attributable to such misuse shall be the responsibility of Sublessee. b. KLBA shall provide standard field preparation supplies customarily used in the ordinary course of operations. In the event that field material needs exceed anticipated or routine: requirements due to unusual weather conditions, scheduling impacts, or other extraordinary circumstances; the Parties agree to communicate and work cooperatively to address such needs. If replacement or repair of materials, equipment, or facilities is required as a result of misuse, abuse, or negligence by Sublessee participants, the Parties shall work together in good faith to repair, replace, or otherwise mitigate the situation, with costs attributable to such misuse or abuse being the responsibility of Sublessee. c. Master Lease Obligations: Sublessee acknowledges that, pursuant to the Master Lease, Sublessor remains responsible for the year-round maintenance of the baseball playing surface and for the maintenance and repair of all buildings and improvements on the Premises. Any assistance provided by Sublessee coaches, staff, or volunteers with routine field preparation during the Sub -Lease Term is intended solely as a cooperative operational arrangement and shall not be construed as a transfer of maintenance responsibility or as modifying Sublessor's obligations to the Lessor under the Master Lease. d. Damage and Restoration: Sublessee shall be responsible for any damage to the Premises, equipment, or improvements arising from its use, ordinary wear and tear excepted. Sublessor may deduct from any deposits or bill Sublessee for actual repair costs. Sublessor shall have the right to inspect the Premises at any time during the Sub -Lease Term upon reasonable notice. The Premises shall be returned in the same condition as received, ordinary wear and tear excepted. 5. Insurance Requirements and Indemnification a. Additional Insured: Sublessee hereby agrees to provide Sublessor and Lessor with a certificate of insurance. Said certificate shall name Sublessor and Lessor as an additional insured for comprehensive general liability. Said insurance shall provide for amounts not less than $750,000 for bodily injury and property damage from any one occurrence and not less than $1,500,000 annual aggregate. Said certificate shall also contain a provision that the insurer not cancel or refuse to renew without giving sublessor and lessor written notice at least 10 days before the effective date of the cancellation or non -renewal. The insurance policy shall be primary and non-contributory with respect to any insurance maintained by Sublessor and shall include a waiver of subrogation in favor of Sublessor. b. General Requirements: Sublessee shall also comply with all other insurance coverage requirements as set forth in the Master Lease. c. Sublessee shall indemnify, defend, and hold harmless Sublessor and Lessor, its officers, directors, volunteers, and employees from and against all claims, liabilities, damages, and expenses (including reasonable attorney fees) arising from (i) Sublessee's use or occupancy of the Premises, (ii) the acts or omissions of Sublessee's employees, students, guests, or invitees, and (iii) any breach of this Sub -Lease, except to the extent caused by Sublessor's gross negligence or willful misconduct. s 6. Governing Law and Master Lease Incorporation a. Governing Law: This Sub -Lease shall be deemed to be made and shall be construed in accordance with the laws of the State of Montana. b. Master Lease Incorporation: All applicable terns, conditions, and obligations of the Master Lease between the City of Kalispell and Kalispell Legion Baseball Association, not in conflict with the express provisions of this Sub -Lease, are incorporated herein by reference and made a part of this agreement. Sublessee acknowledges that its rights are subject and subordinate to the Master Lease. c. Termination and Force Maieure: Sublessor may terminate this Sub -Lease upon thirty (30) days' written notice if Sublessee defaults or if use of the Premises becomes impracticable due to weather, government order, casualty, or events beyond Sublessor's control. d. Entire Agreement and Amendment: This Sub -Lease constitutes the entire agreement between the Parties and supersedes all prior discussions. It may be amended only by written agreement signed by all Parties, including the Lessor if required by the Master Lease. DATED this 0A day of g , 2026. SIGNATURES The undersigned are authorized to execute this Sub -Lease Agreement and bind their respective entities as parties hereto: KALISPELL LEGION BASEBALL KALISPELL PUBLIC SCHOOL CITY OF KALISPELL, ASSOCIATION (SUBLESSOR) DISTRICT 5 (SUBLESSEE) MONTANA (LESSOR) Signature: Signature: Signature: Printed Name: Printed Name: Printed Name: BYM tl La 11 -e- n Title: Title: eS �j\►tv�o��Ass�. Title: iCaliSv�pll .. Y ` LakK _Rtc rtt Nid kA5 Date: I 12-026 Date: Date: 0 9 STATE OF MONTANA ):SS County of Flathead ) On this q""' day of YV kCL1-- , 2026, before me, the undersigned, a Notary Public for the State of Montana, personally appeared i`lCs President of the KALISPELL LEGION BASEBALL ASSOCIATION, a Montana not -for -profit corporation, and acknowledged to me that they each executed the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal the day and year in this certificate first above written. 19 JAMES KESTER P�Es �pTAR/q49 NOTARY PUBLICfarthe * SEAL State of Montana N�9rF�FMO�P�P Residing at Kalispell, Montana My Commission Expires November 21, 2028 STATE OF MONTANA ) ):ss County of Flathead ) Notary Public. S ate of Montana Printed Name: --' Residing at 1 My Commission Expires ! 2 On this y da of March 2026, before me, the undersigned, a Notary Public for the State of Montana, personally appeared Aldasifteyi-beS 1)1YP&y of the KALISPELL PUBLIC SCHOOL DISTRICT 5, and acknowledged to me that they each executed the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal the day and year in this certificate first above written. ASHLEY HAMMER NOTARY PUBLIC for the State of Montana * SEAL : * Residing at U, Kalispell, Montana 9rFOFMO��P My Commission Expires October 04, 2027 =A%W* yu[$)kNWA. ):ss County of Flathead ) Notate Pubtic, tate of Montana Printed N ame: P s Residing at M- Commission Exp es C'fUbPY �Z-j On this day of , 2026, before me, the undersigned, a Notary Public for the State of Montana, personally appeared as of the CITY OF KALISPELL, MONTANA, and acknowledged to me that they each executed the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal the day and year in this certificate first above written. Notary Public. State of Montana Printed Name: Residing at My Commission Expires C.1