15. Hockaday Center for the Arts Lease AgreementLEASE AGREEMENT
THIS AGREEMENT, made and entered into this 1st day of April,
1996, by and between THE CITY OF KALISPELL, a municipal
corporation, hereinafter called CITY, and the HOCKADAY CENTER FOR
THE ARTS, a non-profit corporation, hereinafter called CENTER;
W I T N E S S E T H:
WHEREAS, on the 13th day of May, 1981, the parties did enter
into an agreement whereby CITY leased to the CENTER that certain
premises known as Hockaday Center for the Arts, and owned by the
CITY, more particularly described as follows:
Lots 1 and 2 of Block 64, of Kalispell, Montana,
according to the map or plat thereof on file and of
record in the office of the County Clerk and Recorder of
Flathead County, Montana.
WHEREAS, such lease of said premises has been found to have
been to the mutual benefit of the parties and to the people of the
City of Kalispell and Flathead County; and
WHEREAS, it is the intent of the parties that a similar lease
arrangement should be continued;
NOW, THEREFORE, the CITY does demise, lease and let to the
CENTER, and CENTER does agree to lease and rent from the CITY said
w. premises under the following terms and conditions:
1. Term: The terms of this lease agreement shall be for
a period of five (5) years commencing April 1, 1996.
2. Consideration: The CENTER shall pay to the CITY, as
rent, the sum of $1.00 per year in advance; receipt of
the rental for the first year of this term of this lease
is hereby acknowledged by the CITY. Rent for subsequent
years of the term of this lease is due and payable on the
annual anniversary date hereof.
3. Insurance: A) The CITY shall insure said premises
for fire damage, extended coverage and other risks which
it may choose in such amounts and for such terms as the
CITY shall deem advisable. All policies carried by the
CITY shall provide that, in the event of a loss, all
payments under them shall be made solely to CITY. In the
event the premises suffers fire, or other damage, of less
that 50% of the total value of the premises, the CITY
shall repair or rebuild the premises as the insurance
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benefits shall allow and the lease shall continue. In
the event the premises suffers a loss of more than 50% of
its total value, the CITY shall decide what further use
will be made of the premises and the lease shall
terminate. The CENTER releases the CITY and its agents
from all demands, claims and causes of action arising
from any of these causes.
B) The CENTER shall insure the contents of said
premises as the CENTER shall deem advisable. All
policies carried by CENTER shall provide, that in the
event of loss, all payments shall be made solely to
CENTER.
C) The CENTER shall maintain a policy of insurance
in the sum of at least $750, 000 per person/$1, 500, 000 per
occurrence insuring CITY against any and all personal
injury or property damage that may occur on said premises
from any and all causes. CENTER shall furnish to the
CITY a certificate reflecting such insurance is in full
force and effect at all times during the term of this
lease and while CENTER is in possession of said premises.
Said insurance shall contain a clause requiring that the
CITY be given at least 30 days notice of termination or
cancellation thereof.
4. Utilities: The CITY shall reimburse the CENTER,
from funds budgeted and appropriated for payment of
utilities (water, gas, and electricity) and maintenance
costs incurred by the CENTER, provided that said costs
do not exceed $6,600.00 per year. In the event said
costs do exceed $6,600.00 per year, the CENTER shall be
responsible for the excess.
5. Maintenance, Repairs and Alterations: The CENTER
shall keep and maintain said premises in a good repair
and in a neat condition and shall not commit or permit
waste to occur thereon. No major repairs or alterations
of any kind shall be made on said premises without the
CENTER having obtained written permission therefor from
the City Council and agreement as to the funding
therefor. All fixtures and additions of any kind made to
said premises shall become the property of the CITY. The
CENTER shall be responsible for all maintenance and
repairs of utility service facilities on said premises
during the term of this lease, and shall further be
required to and be responsible for maintenance of lawn
and shrubs and removal of ice and snow.
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6. Nothing contained in this paragraph shall prohibit the
CITY from making available, to the CENTER, through the
budgetary process such additional sums as the CITY deems
necessary to perform maintenance upon the property leased
to the CENTER.
7. Use: Said premises is intended for and may be used
only for the exhibition and display of the visual and
performing arts, as well as lectures, public and private
meetings, readings, discussion groups, gallery talks and
recitals in music, dance, drama and other related arts
and for classes and instruction in the arts and crafts,
particularly those incidental to this area. In addition
to the foregoing, the premises may be used for a sales
gallery operated by the CENTER to develop and exhibit
local artists and such other artists as CENTER may wish
to include, the proceeds from said gallery to go to the
CENTER.
8. Assignability: This lease is not assignable;
however, the CENTER may sublet, with City Council
approval, on a temporary basis, portions of said premises
for uses connected and logically associated with the
intended cultural use of the premises.
9. Miscellaneous: CENTER shall, on or before October 1,
of each year of this lease, furnish to the City a general
budget as adopted by CENTER for the ensuing year. Also,
CENTER shall, upon request of the City Council, furnish
information covering the operating policies and costs of
operation of said premises.
10. Termination: This lease may be terminated by CENTER
upon 90 days written notice to the CITY. Same may be
terminated by the CITY upon 90 days written notice for
delinquency in payment of rent or violation of any
covenant hereinabove contained unless such delinquency or
violation be corrected within said 90 day period.
IN WITNESS WHEREOF, both parties have hereunto set their hands
and seals this day of April, 1996.
THE CITY OF KALISPELL
LO
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Interim City Manager
ATTEST:
Debbie Gifford, CMC
Clerk of Council
HOCKADAY CENTER FOR THE ARTS
President
ATTEST:
M
Secretary
STATE OF MONTANA }
: ss
County of Flathead }
On this day of , 1996, before me, the
undersigned, a Notary Public for the State of Montana, personally
appeared AL THELEN and DEBBIE GIFFORD, known to me to be the
Interim City Manager and Clerk of Council of the municipal
corporation that executed the within and foregoing instrument and
acknowledged to me that such municipal corporation executed the
same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
Notarial Seal the day and year first above written.
Notary Public, State of Montana
Residing at Kalispell, Montana
My Commission expires
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STATE OF MONTANA }
: ss
County of Flathead }
On this day of , before me, the
undersigned, a Notary Public for the State of Montana, personally
appeared and ,
known to me to be the President and Secretary, respectively, of the
non-profit corporation that executed the within instrument, and
acknowledged to me that such corporation executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
Notarial Seal the day and year first above written.
Notary Public, State of Montana
Residing at Kalispell, Montana
My Commission expires
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