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Lease/Pee Wee BaseballThis Lease is made and entered into this day of 1 1992, by and between the CITY OF KALISPELL, MONTANA, a municipal corporation (hereinafter referred to as "City") and KALISPELL PEE WEE BASEHATJ LEAGUE, INC., a Montana non-profit corporation with its principal place of business located in Kalispell, Montana (hereinafter referred to as "Pee Wee Baseball") . The City, for and in consideration of the agreements and covenants of Pee Wee Baseball, as hereinafter set forth, hereby leases to Pee Wee Baseball, and Pee Wee Baseball hereby leases from the City, certain real property owned by the City and located south thereof and along Cemetery Road, containing forty (40) acres, more or less, more particularly described in Exhibit "All attached hereto and by this reference incorporated herein. 1. Term of Lease. The term of this Lease shall commence upon delivery of the entire property to Pee Wee Baseball, and shall continue for an initial period of five (5) years thereafter, unless terminated sooner as provided in this Lease. This Lease may be renewed for four (4) additional periods of five (5) years each, upon Pee Wee Baseball providing written notice of its election to exercise this option to extend the term to the City not less than thirty (30) days prior to expiration of each lease term. Following forwarding of notice of lease renewal, representatives of the parties shall meet and confer on the issues of maintenance of the leased premises and insurance coverage and limits. Any agreements to modify the terms of this Lease shall be reduced to writing and appended to this agreement. 2. Rent. The parties recognize that the leased premises is undeveloped land and that Pee Wee Baseball intends to make capital improvements for the purpose of conducting youth athletic activities thereon, and thereafter to maintain and repair said improvements. In consideration for making these improvements at its expense, and thereafter maintaining and repairing them, no cash payment shall be required of Pee Wee Baseball to the City during the initial or any extended term of this Lease. 3. Delivery of Possession, Health Considerations. The City may deliver the leased premises in parcels, with the parties anticipating that approximately one-half of the parcel shall be delivered in 1992 and the remainder in 1993. The lease term shall commence upon the date the full property is finally delivered to Pee Wee Baseball. Prior thereto, the City shall make available to Pee Wee Baseball records, data and other :WC documentation showing composition and strength of waste materials applied to the property. The parties recognize that the leased premises has been used by the City as an injection site for disposal of sludge from its sewage treatment facilities, and that it is in the best interests of both parties to be satisfied that the property can be healthfully utilized for its intended purposes under this Lease. If soil tests are requested by either party, both shall cooperate in their accomplishment. Pee Wee Baseball may terminate this Lease if it is not satisfied regarding the healthful use of the property. 4. Use, Compliance with Laws, Etc. The leased premises shall be used by Pee Wee Baseball for the purpose of conducting youth athletic activities, provided that Pee Wee Baseball may permit the conduct of other community activities which are not detrimental to the leased premises. Concession and activities shall be under the control of Pee Wee Baseball, provided that there shall be no sales or consumption of alcoholic, beverages on the leased premises. Pee Wee Baseball shall keep the leased premises in a clean and orderly condition and shall conduct its activities thereon without allowing a nuisance to occur or exist on the leased premises. It is understood that the activities permitted under this Lease shall be solely under the control and regulation of Pee Wee Baseball. 5. Discrimination. Pee Wee Baseball shall comply with the provisions of the Montana Non -Discrimination Statute (Section 49- 2-101, et seq., MCA) and Governmental Code of Fair Practices (Section 49-3-101, et seq., MCA) which apply to it and its activities on the leased premises during the lease term. 6. Capital Improvements. Pee Wee Baseball shall make capital improvements on the leased premises which will allow it to conduct the activities permitted under this Lease. A master plan of development shall be prepared by Pee Wee Baseball and presented to the City for comment prior to commencing capital improvements. Amendments to the master plan shall likewise be submitted to the City for comment. By way of illustration and not limitation, Pee Wee Baseball shall be responsible for constructing ballfields, fencing, grandstands, lighting, roadways, parking areas, concession stands, storage areas, service utilities, restroom and training facilities, providing utilities to said improvements, and maintaining and repairing the improvements. 7. Insurance. Pee Wee Baseball shall maintain, in full force and effect during the term of this Lease, general liability insurance to protect against damage claims through use of or arising out of injuries occurring in or around the leased premises in a minimum amount of $1,000,000 per occurrence. Pee Wee Baseball shall be responsible for providing casualty or other hazard loss insurance for its improvements. A copy of the liability policy will be provided by Pee Wee Baseball to the City. cm 8. Default and Termination by Cit y. In the event: a) The City fails to deliver possession of the leased premises as provided in this agreement, or b) The City fails to negotiate the terms of a new Lease agreement -following expiration of the final term of this agreement, Pee wee Baseball may terminate this Lease by providing written notice thereof to the City, and the City shall purchase from Pee Wee Baseball all capital improvements at book value as shown on the records of Pee Wee Baseball up to the date of termination notice. 9. Default and Termination by Pee Wee Baseball. In the event: a) Pee Wee Baseball does not make reasonable efforts to begin improving the leased premises following deliver to Pee Wee Baseball, or b) Pee Wee Baseball violates any of the provisions of this lease, the city shall notify Pee Wee Baseball of its intent to terminate this Lease by giving ninety (90) days' advance written notice thereof to Pee Wee Baseball. During said ninety (90) day period, the City and Pee Wee Baseball shall meet and confer for the purposes of resolving default. If the default is resolved by assurances approved by the City, the approval of which shall not be unreasonably withheld, the notice of termination shall be withdrawn. If the default is not resolved by assurances approved by the City, the City may terminate the lease and compensate Pee Wee Baseball as provided in Paragraph 8. 10. Termination Without Compensation. a) In the event Pee Wee Baseball, or a successor organization as permitted in Paragraph 12, does not exist at the time of termination of this Lease, the capital improvements shall revert to the City without cost. b) In the event, during the term of this agreement, Pee Wee Baseball desires to terminate this Lease, it may do so by giving written notice to the City, provided that if the Lease is terminated at the request of Pee Wee Baseball, no compensation for capital improvements shall be made by the City. =I= 11. Option to Purchase. Following execution of this Lease, Pee Wee Baseball shall procure an appraisal of the leased premises as of the date of this Lease by an appraiser who is acceptable to both parties. The appraisal shall be used in the following instances: a) In the event the City wishes to sell the lease premises during the initial or any extended o renewed lease term, Pee Wee • shall ha the option to purchase it f or cash at the prese appraised value of the leased premises by providin the City with written notice of its election t v n exercise the option wn sixty (60) day following the City notifying Pee Wee Baseball i writing of its intent to sell the leased premises if Pee Wee Baseball does not purchase the lease premises and it is sold to a • party, the sal - shall be subject to the terms of this Lease. I*) upon any termination or expiration of this Lease, Pee Wee Baseball shall have the option to purchase the leased premises for cash at the aforementioned appraised value by providing the City with written notice of its election to exercise the option within sixty (60) days following lease termination. 12. Assignment. In the event local youth baseball programs reorganize, Pee Wee Baseball may assign its interest in this Lease to its successor organization. Otherwise, Pee Wee Baseball may only assign is interests in the Lease with the prior written approval of the City. IN WITNESS WHEREOF, the parties have executed this Lease the day and year first above written. Attest: City Clerk Attest: Jan Wassink, Secretary CITY OF KALISPELL B Bruce Williams, City Manager KALISPELL PEE WEE BASEBALL LEAGUE, INC. .Z Daniel D. Johns, President That portion of the Northeast Quarter of Section 29, Township 28 North, Range 21 West, Flathead County, Montana, described as follows® Commencing at the center Quarter corner of Section 29; thence along the west line of the Northeast Quarter North 0° 08' 52" West 1288.95 feet to the south line of Cemetery Road (a 60-foot county road); thence along the South line of the road South 89° 31' 38" East 1352.27 feet; thence South 00 08' 52" East 1288.21 feet; thence North 89' 33' 31" West 1352.26 feet to the Point of Beginning.