E/7. Lease Agreement - Hockaday Center for the Arts40 City of Kalispell
Post Office Box 1997 - Kalispell, Montana 59903-1997 - Telephone (406)758-7700 Fax(406)758-7758
REPORT TO: Honorable Mayor and City Council
FROM: Chris A. Kukulski, City Manager
SUBJECT: Five Year Lease Agreement Between the City of Kalispell and the Hockaday
Center for the Arts
MEETING DATE: June 18, 2001
BACK GROUND: Attached is a copy of the five year lease agreement between the City of Kalispell
and the Hockaday Center beginning April 1, 2001. The original signing of this lease is dated May 13,
1981 and the terms remain unchanged. The consideration of the lease is for the sum of $1.00 per year.
While the City provides insurance for the structure, the Hockaday is required to insure the building's
contents and a minimum of $750,000 in personal injury and property damage liability insurance. The
City, with a maximum amount of $6,600, pays utilities annually and all maintenance, repairs and
alterations shall be the responsibility of the Hockaday. Finally, the lease limits the use of the facilty to
those activities commenly connected to the visual and performing arts.
RECOMMENDATION: The City Council authorize the City Manager to sign the attached Lease
Agreement between the City of Kalispell and the Hockaday Center.
FISCAL EFFECTS: The City will receive a total of $5.00 for the term of the lease and has committed
itself to paying an amount not to exceed $6,600 annually to cover any and all utility cost.
ALTERNATIVES: As suggested by the Council.
Respectfully submitted,
UN-�4A,9 &,
Chris A. Kukulski
City Manager
Report compiled June 13, 2001
LEASE AGREEMENT
THIS AGREEMENT, made and entered into this 1st day of
April, 2001, 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 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, 2001.
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 f or 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 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.
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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 June, 2001.
ATTEST:
Theresa White
City Clerk
ATTEST:
By
Secretary
THE CITY OF KALISPELL
Chris A. Kukulski
City Manager
HOCKADAY CENTER FOR THE ARTS
UA
President
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