09. Review Ballfield ProjectAgenda -April 14, 1997
AGENDA ITEM 9 - BALLFIELD PROJECT -RELATED ITEMS
A. STATE LEASE FORMS - I have enclosed the proposed
state lease for your review. Many of the items that are
included have not been agreed to by the staff. In fact,
some of the items are "surprises". Please review the
proposed lease and give us your comments at the meeting
so we may utilize them within our further refinement of
the lease.
I am particularly concerned about the lease terms for the
last 20 years of the agreement. A reappraisal of the
property scheduled for that time could rapidly increase
our payment to an amount that we could not afford. As an
example, due to a change to commercial usage within the
immediate area the property could be valued at a
commercial rate of a minimum $.55 per square foot based
upon the formula that is in the lease, the annual payment
would be $330,620. (.55 psf X 43,560 sq. ft. per acre =
$23,958 value per acre X 138 total acres = $330,620 total
payment - a 607% increase in the year 2000.) However, a
natural inflation of ag values and inflation could put
the annual payment in the six figures. We are currently
discussing this specific item with the State.
B. FINANCING/BUDGET/PHASED PROJECT - Based upon the
$738,000 selling price of Haven Fields minus the costs
Agenda -April 14, 1997
that has been or will be incurred for the sale and other
costs, we estimate a net revenue from the sale to be
$684,359. This amount minus the engineering cost of
approximately $130,000 ($550,000-$580,000) can be used
for the development of the ballfields. In addition to
this net revenue, it is estimated that we will generate
approximately $123,000 annually beginning in 1999. This
should allow us to consider a ballfield project, from our
funds only, of approximately $900,000-$1 million. This
is based upon joint funds from our sale of the fields
plus a 15 year TIF bond. This is approximately 50% of
the estimated cost of the youth complex. The questions
at this time are:
1. In consideration of the proposed lease, do
you want to proceed?
2. If so, are you willing to settle for a
"down scaled project" (from the proposal
presented at $1.9 million)?
3. If so, at what scale do we plan on - how
many fields can we actually get with
$900,000/$1,000,000 plus any donation for the
youth organization?
4. If so, are you willing.to consider future
G.O. bonding to complete the total project?
Agenda -April 14, 1997
C. DISPLACEMENT OF FIELDS - You have already given us
authority to proceed with the offering of the Daley
Fields Complex. This offering will be official in the
next few weeks. However, I believe we should discuss the
"timing" of this offer in relation to the questions
listed above. If we sell Daley Fields but do not have
(a) an acceptable lease, (b) an acceptable project, (c)
sufficient funding, and/or (d) exact scheduling, we may
not have fields ready for usage by next year. If we do
have, will we have enough to be able to displace the
Daley Fields in addition to the Haven Fields?
D. DALEY FIELDS OFFERING UPDATE - Should/can we continue
to the offering process?
E. AUTHORITY TO PROCEED WITH CONSTRUCTION DOCUMENTS - If
the answer to the questions above are affirmative, we
must begin the completion of the Construction Documents
to enable us to get to construction as soon as possible.
DSL SF101 Sept. 1985(Rev. 5-15-95)
AGREEMENT NO. ____ ___ 3053189 __ _
SPECIAL LEASE OF STATE LANDS
This Lease is entered into by the State of Montana, as Lessor, and the person herein named, as the Lessee.
Date this Lease takes effect:
Name of Lessee:
Address or Box No.:
City/State/Zip:
Land Located in Flathead County.
DESCRIPTION
e
w
R
Acre
Part of SE1/4
36
29 N.
22 W.
138 +/-
Total number of leased acres 138 more or less belonging to Common Schools Sole purpose for which the land is leased:
Athletic Complex including minor and major Pee Wee baseball, softball, t-ball, Babe Ruth League, soccer and ice rink_ _
Term of Lease: Date of expiration: February 28 2037
In consideration of the rentals to be paid and covenants to be pe orme y t e Lessee, his ad mmistrators, executors and assigns, the Lessor hereby leases to
the Lessee the above described land only for the purpose set forth above.
This Lease is subject to the terms, conditions and restrictions set forth herein.
I MUTUALLY UNDERSTOOD, AGREED AND COVENANTED BY AND BETWEEN THE PARTIES TO THIS LEASE AS FOLLOWS:
I`. "RENTAL -The Lessee shall pay to the Lessor an annual money rental as specified in Section Three (3). At least 30 days prior to the end of the first-
................__......__ .......
period nineteenth: year the rental shall be reviewed and may be adjusted at the discretion of the Director of the Department of Natural Resources and
Conservation, a€Ier consultation with the lessee, and any adjustment of the rental rate necessary to secure a fair return to the State shall be made at that time.
A review tion ofthe Dilector offlie Department ofNmrzd Resotnees mid C-onservation be made at five(5) year intervalstheteafteL.
Annual rental indelases implemented for years 20 through 40 will not exceed 2.5% or less than 1.5% of previous years rental. Failure to pay each year's
rental on or before due date automatically cancels this Lease. (Initial or signature)
2. PLACE OF PAYMENT -All payments required by this Lease shall be made to the Department of Natural Resources and Conservation, 2705 Spurgin
Road, Missoula, MT 59801.
3. RENTAL RATE -Rental at the rate of 1997 appraised value will be used for the first 20 years to calculate the annual payment. Years one, two. three.
and four, developed acres x $2,750 (appraised value) x 10% (lease rate) = Annual lease fee. Acres under development during years one through four will be
assessed at 50% of full market value for that year. That acreage will be assessed at 100% the following years. Lease years 5 through 19 will be assessed at
100% regardless of development. Year 5 lease fee will be $37.950.00. The lease fee will increase annually at a rate of 1.5% Years 6 through 19 as follows:
Yr. 6-- $38 519 25 Yr 7--$39 097 04 Yr. 8--$39 683 49 Yr. 9--$40 278 75 Yr. 10--$40 882 93 Yr. 11--$41 496 17 Yr. 12--$42 1 l8 61 Yr. 13--
$42 750 39 Yr. 14-443 391 65 Yr. 15--$44 042 52 Yr. 16--$44 703 16 Yr. 17--$45 373 71 Yr. 18-446 054 32 Yr. 19--$46 745 13 shall be due and
payable by March 1 of each year beginning with year 1997 . FAILURE TO PAY BY APRIL 1 AUTOMATICALLY CANCELS THIS LEASE.A
NOTICE OF RENTAL DUE WILL BE SENT TO THE ABOVE ADDRESS ONLY, UNLESS A CHANGE OF ADDRESS IS RECORDED.
4. RENEWAL LEASE -If all rentals due the State under this Lease have been paid and the terms of this Lease have not been violated, the Lessee may
make application to the Lessor, within thirty (30) days prior to. its expiration, for an additional term not to exceed Five (5) years at such rental as the
Director of Natural Resources and Conservation may determine is a fair return to the State, and subject to periodic reviews of the rental as herein provided;
however, should the Director of the Department of Natural Resources and Conservation in his/her discretion decide it is in the best interests of the State not
to renew this Lease and notify the Lessee at least six (6) months prior to the expiration of the Lease of such decision, the Lessee shall have no renewal
rights.
5. RESERVATIONS -The State reserves all rights and interests to the land under this Lease other than those specifically granted by this Lease. These
reservations include, but are not limited to, the following:
(a) MINERAL AND TIMBER RESERVATION -All coal, oil, gas and other minerals and all deposits of stone, gravel, sand, gems, and other non -
minerals valuable for building, mining or other commercial purposes, and all timber and trees, are excepted from the operation of this Lease. The Lessee
shall not open any mine or quarry or work or dig any of the minerals or non -minerals mentioned above from any mine or any quarry, pit or diggings situated
said land whether such mine, quarry, pit or diggings was open at the date of this Lease or not.The Lessee shall not cut, remove, use or destroy any
timber or standing trees, and shall not allow or permit any other person to cut, use, remove or destroy such timber or standing trees unless such person
is authorized by the Lessor.
(b) ADDITIONAL RESERVATIONS -The State reserves a right-of-way to the United States over the land above -described for ditches, canals,
tunnels, telephone and telegraph, and power lines now constructed, or to be constructed by the United States Government in furtherance of the reclamation
of and lands. The State also reserves the right of granting rights -of -way on the above -described land for other purposes. The State also reserves to itself
and its representatives and Lessees the right to enter upon the lands embraced by this Lease for purpose of prospecting and exploring for minerals and for
the purpose of mining, drilling for, developing and removing such minerals and for carrying on all operations related thereto; it also reserves to itself and its
permittees the right to enter upon the said lands for the purpose of cutting and removing timber, wood and other forest products, and for remov ing gra4 el,
sand, building stone, and other non -minerals. The State or its
authorized representative may from time to time, at any reasonable hour, enter upon and inspect the leased premises, site or any portion thereof or
Improvements thereon to ascertain compliance with this Lease, but without obligation to do so or liability thereof. (Sig)
6. RIGHT TO ENTRY -Representatives of the State Historical Society of the State of Montana shall at all reasonable times, upon written notification to
Department of Natural Resources and Conservation prior to entry, have the right to enter into and upon the premises for the purpose of carrying out the
ies assigned the Historical Society by the State Antiquities Act, 22-3-4, MCA.
�. WATER RIGHTS -Any water right appropriated or secured on State land by any individual or party for use on or off such State land shall be
appropriated or secured in the name of the State of Montana unless prior written permission to do otherwise is granted by the Department of Natural
Resources and Conservation. The Department of Natural Resources and Conservation shall be notified prior to such development or appropriation of water
right.
8. CANCELLATION -The Lessor shall have the power and authority in his discretion to cancel the Lease for any of the following causes: for fraud or
misrepresentation, or for concealment of facts relating to its issue, which if known would have prevented its issue in the form or to the party issued; for
using the land for other purposes than those authorized by the Lease, and for any other reasonable cause which in the judgment of the Lessor makes the
cancellation of the Lease necessary in order to do justice to all parties concerned and to protect the interest of the State. Such cancellation shall not entitle
the Lessee to any refund of rentals paid or exemption from the payment of any rents, penalties or other compensation due the State. Lease cancellation is
subject to appeal as provided in Section 77-6-211, MCA.
9. UNLAWFUL USE -If any part of the lands or premises under this Lease are used or allowed or permitted to be used for any purpose contrary to the laws
of this State or the United States, such unlawful use shall, in the discretion of the Lessor, constitute sufficient reason for the cancellation of the Lease.
10. REOUEST FOR I MPROVEMENTS-The lessee shall have the I ight to place stich ii np rove ments on the lewed pre '_ - Miable taking into
(Sig -nature)
11. LESSOR LIEN -The Lessor shall have a lien upon all buildings, structures and other improvements for payment of the rentals specified herein.
Provided however, that in the event the City sells bonds to make 'improvements on the property and the bond indenture requires the City to pledge said
improvements as collateral. Lessor shall not unreasonably withhold its consent to become subordinate to the bond indenture. (Sig)
12. !MPROVENIB4TS-If the land tinder this lease is --sold to some otlie-r -pem— d— the piesent lessee,or is leased to sorne othe, person-whk-th�.
accordance with (Signature)
If the former Lessee fails to remove the movable improvements on the land or dispose of the same to the new Lessee or purchaser or to parties other than
the new Lessee or purchaser within sixty (60) days from the date of the expiration or termination of this Lease for any cause, then all such improvements
11 become the property of the State unless the Lessor for good cause shown shall grant the additional time necessary for the removal thereof.
ASSIGNMENT -If all rentals due have been paid and the terms of the Lease have not been violated, the Lease may be assigned on forms provided for
tnat purpose by the Department of Natural Resources and Conservation , but no such assignment shall be binding on the State unless the assignment is filed
with the Department, approved by it, and payment made of the assignment fee.
14. SUBLEASE -The Lessee shall have the right to sublease the land to another party upon the same terms and conditions as those upon which he leases it
from the State, provided that no such sublease shall be legal until a copy thereof has been filed with the Department of Natural Resources and Conservation
and approved by the Director of the Department of Natural Resources and Conservation. If a Lessee subleases State land on terms less advantageous to the
sublessee than the terms given by the State, the Director shall cancel the Lease subject to the appeal procedure provided in Section 77-6-211, MCA.
Furthermore, subleasing may cause loss of the preference right to renew this Lease. (The Department's surface management rules concerning subleasing
should be consulted.)
15. REQUEST TO CANCEL LEASE -The Lessee may request the right to surrender and relinquish the Lease, in whole or in part, by writing to the
Department of Natural Resources and Conservation,at least thirty (30) days prior to the termination of any rental year. The Director of the Department of
Natural Resources and Conservation may grant or deny the request and may condition the right to surrender and relinquish upon the payment to the State of
reasonable damages caused by the surrender.
16. LAWS AND RULES -The Lessee agrees to comply with all applicable laws and regulations in effect at the date of this Lease, or which may, from time
to time, be adopted, and which do not impair the obligations of this contract and which do not deprive the Lessee of an existing property right recognized by
law.
17. LEASE WITHDRAWAL -All or any portion of the land under lease may be withdrawn from this Lease by the State upon reasonable notice, except
through special agreement with Lessee. The Lessee shall be entitled to reasonable compensation for any improvements thereon. The lands may be
withdrawn to promote the duties and responsibilities of the Board of Land Commissioners.
18. EXTENT -All covenants and agreements herein set forth between the parties hereto shall extend to and bind their successors, assigns and legal
representatives.
19. UTILITY INSTALLATION -The Lessee, at its sole cost and expense, shall determine the availability of, and shall cause to be installed in, on, and
about the leased premises,all facilities necessary to supply thereto all water, sewer, gas, electricity, telephone and other like services required in Lessee's
operations hereunder. Lessee agrees to pay all connection or acreage assessments or charges levied by any public utility, agency or municipality with
respect to their services. Notwithstanding the foregoing, Lessee shall not enter into any contract or agreement with any city, county, or other governmental
agency or body or public utility with reference to sewer lines or connections, water lines or connections, or street improvements relating to the leased
premises without the prior written consent of the State,which consent shall not reasonably be withheld.
20. TAXES -The Lessee shall pay all taxes, special assessments, levies, fees,and other governmental charges of every kind or nature that may be levied by
I and all federal, state, county, municipality, and any other taxes or assessing authority upon the improvements and property owned by Lessee on or about
,eased premises during the term of this Lease. Payment shall be made not later than ten (10) days prior to delinquency of taxes, special assessments,
levies, fees, and other governmental charges. Lessee shall cause all taxes imposed upon all improvements situated in, on or about the premises, to be levied
or assessed separately from said leased premises and not as a lien thereunder.
21. FIRE PREVENTION AND SUPPRESSION -The Lessee assumes all responsibility for performing at his own cost and expense all fire prevention and
suppression work necessary or required to protect the forage, trees, buildings and structures on the land to the same extent as if the land was owned by
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The Lessee shall be required to obtain and maintain general liability insurance with a minimum coverage for each occurrence or.
Property Damage $ 50,000
Injury or Death (One Person) $250,000
Injury or Death (More than One Person) $500,000
The policies and certificate of insurance shall name the State of Montana and Department as insured. No use pursuant to this Lease is allowed until a
. py of the insurance certificate has been submitted to the Department.
43. CONSTRUCTION SAFETY -The Lessee shall carry on all operations in a skillful manner, having due regard for the safety of employees; and shall
safeguard with fences, barriers, fills, covers, or other effective devices all pits, cuts, and other excavations which otherwise would unduly imperil the life,
safety, or property of other persons.
44. BUILDING AND SERVICE SYSTEM PLANS -All plans and specifications for buildings shall be in accordance with the IBCO (Uniform) Building
Code. Building plumbing shall be in accordance with the National Plumbing Code. The electrical system shall be designed in accordance with recognized
standards.
45. SURVEY -Within I (one) year of issuance of this Lease the Lessee shall survey the leased area. The land survey shall be prepared by a licensed
surveyor or certified engineer. A metal cap monument will be permanently located at the center'/. corner for boundary location. The Lessee assumes all
responsibility for the filing of the survey and complying with jurisdictional zoning requirements.
46. NONDISCRIMINATION (EMPLOYMENT AND SERVICES) -During the term of this Lease the Lessee agrees that the performance of work under
this authorization (including construction, maintenance, and operation of the facility) the Lessee shall not discriminate against any employee or applicant for
employment because of race, color, religion, sex, national origin, age or handicap.
47. CONDITION -Lessee has examined the physical condition of the Parcel, is familiar with it. and takes it "as is." Lessor makes no express or implied
warranties as to the physical condition of the Parcel.
48. CONFORMITY TO LAW -Lessee shall maintain the Parcel in a clean and safe condition. Lessee shall not use or permit the Parcel to be used in any
manner that is not in conformity with all applicable federal, state, county and municipal laws, statutes, ordinances, permits and regulations.
49. SURRENDER -Lessee shall surrender peaceable possession of the Parcel upon the expiration date of the Lease.
50. IMPROVEMENTS DEFINED -All buildings, streets, curbs, sewers, drainage and flood control structures, sidewalks, fences, utilities, landscaping,
signs, and other structures of every kind and nature which exist, at any time, on, above or below the parcel or a portion thereof, and which are not portable
in nature, are considered "Improvements" under this Lease.
51. DEVELOPMENT OF ATHLETIC COMPLEX -Lessee has entered into this Lease in order to develop, grade and construct an athletic complex for
minor and major Pee Wee baseball, softball, t-ball, Babe Ruth League, soccer fields, and a future indoor ice rink and other athletic activities on the parcel
and certain other improvements that are incidental to, related to, or otherwise from time -to -time used in conjunction with the above activities. Lessee may
make such other improvements, additions or alterations to the Parcel as are reasonably necessary or appropriate to maintain, rehabilitate and operate the
athletic complex. Lessee shall not, without Lessor's prior written consent, remove, demolish, replace or substantially alter all or any part of the
Improvements upon the Parcel if the athletic complex would be substantially and detrimentally affected as a result of Lessee's action.
TIMETABLE -Lessee shall commence work on the development of the athletic complex no later than 30 days after written approval of plans by Lessor,
shall diligently pursue the completion of such improvements.
5J. COMPLIANCE WITH LAWS -Construction of all approved Improvements on the Athletic Complex shall be completed in substantial accordance
with the plans and specifications submitted to Lessor and in compliance with all applicable governmental permits, laws, ordinances and regulations, and
requirements for permits or approvals from various governmental agencies and bodies having jurisdiction over the Parcel, including, but not limited to,
grading permits, building permits, and zoning and planning requirements provided that Lessee reserves the right to make changes in the plans and
specifications to comply with applicable governmental laws, ordinances and regulations applicable thereto.
54. IMPROVEMENTS -Lessee shall not place any Improvements upon the Parcel without first receiving prior written permission from the Lessor.
Lessor does not intend to allow any additional permanent Improvements on the Parcel and any Improvements placed without Lessor's prior written approval
shall not be reimbursable. Lessor hereby authorizes Lessee to construct, without further approval of Lessor, temporary Improvements so long as they are
consistent with the purpose of this Lease. All temporary Improvements shall not be reimbursable. At the end of the fifth lease year, and every five year
period thereafter, Lessee, following the receipt of written request thereof from Lessor, she provide Lessor with notice of substantial changes to the
Improvements, together with a revised Site Plan of such Improvements.
55. AMORTIZATION OF IMPROVEMENTS -Lessee and Lessor agree that the purpose of this Lease upon expiration may not be the highest and best
use for this Parcel. Therefore, it is agreed that all Improvements placed by Lessee for the purpose of the Lease shall be amortized by Lessee over the Term
of the Lease and upon expiration the value of those Improvements shall be zero.
56. OWNERSHIP OF IMPROVEMENTS -All Improvements constructed on the Parcel by Lessee pursuant to the terms of this Lease shall be owned by
Lessee until expiration of the term or earlier termination of this Lease. Lessee shall not, however, remove any Improvements from the Parcel or waste or
destroy such Improvements, except as permitted by the Lease. All Improvements and alterations or additions thereto on the Parcel at the expiration or
earlier termination of this Lease shall become the property of Lessor and shall remain upon the Parcel and be surrendered to Lessor with the Parcel.
57. REMOVAL -With the approval of Lessor, the Owner of the Improvements shall have the right, from time to time, to remove or demolish all or any pan
of such Improvements on the Parcel without obligation to reconstruct Improvements thereon; provided, however, that the Lessee shall continue to be
obligated to pay the annual rent as set forth in Section 3. Further, with the prior written permission of Lessor, the Owner shall be entitled, but not obligated,
to remove or demolish all or any part of the Improvements from the Parcel at any time within 90 days after the termination of this Lease without any
obligation to reconstruct Improvements thereon.
58. UTILITIES -Gas, electric, power, telephone, water, sewer, cable television and other utility or service lines of every kind shall be placed and kept
underground unless Lessor grants prior written approval otherwise.
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59. REPAIR AND MAINTENANCE -Lessor shall be under no obligation to maintain, repair, rebuild or replace any Improvement on the Parcel. Lessee
shall, at its sole cost, maintain the Parcel in accordance with approved plans. At its own expense Lessee shall keep and maintain the Parcel in good order,
condition and repair in accordance with all applicable -laws, ordinances, rules, orders and regulations of: (a) federal, state, county, municipal, and other
governmental agencies and bodies having or claiming jurisdiction over the Parcel; (b) any insurance underwriting board or insurance inspection bureau
having or claiming jurisdiction over the Parcel; and (c) all insurance companies insuring all or any part of the Parcel. Lessee shall promptly and diligently
-,air, restore and replace all or any part of the Parcel in order to comply with the maintenance obligations specified herein. In the event of damage to or
ruction of all or any part of the Improvements, which damage or destruction is covered by insurance required to be maintained under the terms of this
—,.ase, Lessee shall, prior to the expiration of the Lease reconstruct, repair or replace the Improvements to a condition comparable in value, quality and use
to the condition of the Improvements before such damage or destruction. After expiration or termination of the Lease, Lessee shall have no obligation to
reconstruct, repair and/or replace the Improvements. Any damage to adjacent parcel caused by Lessee's use of the Parcel shall be repaired at the sole cost
and expense of Lessee.
60. CONTEST -Notwithstanding anything contained herein to the contrary, after written notice to Lessor, Lessee may contest by appropriate legal
proceeding, conducted in good faith and with due diligence, the amount, validity, or application. in whole or in part, of any imposition, legal requirement,
lien, encumbrance, charge or any other adverse claim against the Parcel provided that: (a) the fee interest of Lessor shall not thereby be encumbered; (b)
such proceeding shall operate to suspend the collection of any fine, fee, charge, assessment or imposition from Lessor and the Parcel; and (c) Lessor shall
not thereby become subject to any civil or criminal liability whatsoever for Lessor or Lessee's failure to comply.
61. LOSSES -Lessee hereby expressly agrees to indemnify and hold Lessor harmless, or cause Lessor to be indemnified and held harmless, from and
against all liabilities, obligations, damages, penalties, claims, causes of actions, costs, charges and expenses, including attorneys' fees and costs, collectively
"losses," which may be imposed upon or incurred by or asserted against Lessor by reason of the following: (a) any accident, injury or damage to any person
or property occurring on or about the Parcel or any portion thereof, (b) any use, nonuse or condition of the Parcel or any portion thereof; and (c) any failure
on the part of Lessee to perform or comply with any of the provisions of this Lease. Lessee agrees to indemnify Lessor for any such losses except such
matters caused by or resulting from Lessor's willful misconduct, misfeasance, or active negligence.
62. DEFENSE -In case any action or proceeding is brought against Lessor by reason of any such occurrence, Lessee, upon Lessor's request and at Lessee's
expense, will resist and defend such action or proceeding, or cause the same to be resisted and defended either by legal counsel designated by Lessee or,
where such occurrence is covered by liability insurance, by legal counsel designated by the insurer if so required by such insurer.
63. DAMAGE -If the Parcel or any portion thereof are damaged or destroyed during the term of this Lease, Lessee may arrange, at its expense, for the
repair, restoration and reconstruction of the same substantially to its former condition, or upon approval by the Commissioner, which will not be
unreasonably withheld or delayed, for development and construction of a new project. In any event, such damage or destruction shall not terminate this
Lease or relieve Lessee from its duties and liabilities hereunder.
64. AMENDMENTS -Lessor and Lessee expressly agree that his Lease may be subject to amendments which are neither material nor substantial from time
to time by mutual consent in writing, provided that the Department determines that: (a) such amendment does not materially and substantially impair the
interest of the Lessor; and (b) the amendment can be legally affected without conducting a public hearing or advertising and offering this Lease as so
amended at any public auction. Amendments which are material and substantial include, but are not limited to, the rent provisions, the term of the Lease
and Lessor's remedies.
.COOPERATION -The parties hereto agree to fully and reasonably cooperate so as to allow Lessee to develop the Parcel consistent with this Lease and
pplicable zoning. The parties also agree to execute such other and further documents as maybe reasonably required by any party thereto. Lessor's
cooperation shall not include any obligation on the part of Lessor to expend any monies on behalf of Lessee.
66. NOTICES -Any notice to be given or other document to be delivered by one party to the other shall be in writing and served by personal service or by
depositing same in the United States Mail, postage prepaid, return receipt requested and addressed as follows: Department of Natural Resources and
Conservation 2250 Highway 93 North, Kalispell, MT 59901-2557
67. INTEGRATION -This Lease, together with the Exhibits appended hereto, embodies the whole agreement of the parties. There are no other agreements
or terms, oral or written. This document superseded all previous communications, representations and agreements, oral or written, between the parties.
69. LITIGATION —VENUE AND CHOICE OF LAW -In the event of litigation concerning this agreement, venue shall be in the First Judicial District in
and for the County of Lewis and Clark, Montana, and this agreement shall be governed by the laws of the State of Montana both as to interpretation and
performance.
IN WITNESS WHEREOF, the State of Montana and the Lessee have caused this Lease to be executed in duplicate and the Director of the Department
of Natural Resources and Conservation, pursuant to the authority granted him by the Board of Land Commissioners of the State of Montana, has hereunto
set his hand and affixed the seal of the Board of Land Commissioners this day of
19
ARTHUR R. CLINCH
Director, Department of Natural Resources & Conservation
By
JON A. DAHLBERG, Area Manager
Northwestern Land Office
Lessee
Lessee
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