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Home My WebLink About17- Assignment of Knife River Lease Agreement - Montana Department of Transportation (MDT) - 1804 North Rouse Avenue ASSIGNMENT OF KNIFE RIVER LEASE AGREEMENT The "Agreement" as referenced herein is the Knife River Lease Agreement, dated November 8, 2016 (attached), made by and between the Montana Department of Transportation (MDT), and Knife River (Lessee). By signing below, the City of Bozeman (City) and MDT do hereby attest that on 8/3/2017, the City made the final payment to purchase 1804 N. Rouse Ave., Bozeman MT from MDT, assuming all assets and liabilities, including the Agreement. Therefore, MDT desires to assign the Agreement to the City. The parties do hereby agree that the Agreement is assigned as of the date last signed below and is effective as of 8/3/2017. All obligations, rights and responsibilities under the Agreement shall be conveyed to and accepted by the City. All the terms and conditions of the Agreement shall remain unchanged and are in full force and effect until the Lease terminates, as provided therein. Upon execution of this Assignment by the City and MDT, MDT shall: 1. Transfer the Lessee's$2000.00 security deposit to the City. 2. Notify the Lessee of the Assignment The Lessee's contact persons, addresses, telephone numbers, and email addresses are: Knife River Steven Baeth Project Manager—406-209-0702 Linda Waliser-Administrator—406-388-6832 PO Box 9 Belgrade, MT 59714 Montana Department of Transportation does hereby attest to the above and assign the Agreement, including conveyance of all rights and responsibilities thereof. ZAv� Pri Name title ao� to d 3 -moo l Signature Date City of Bozeman does hereby attest to the above and accept assignment of the Agreement, including acceptance of all rights and responsibilities thereof. 1)�.�/1h� � ,c��c � 8✓ � ted Nam9N Title Sighature Date Right of Way Bureau Engineering Division Phone: (406)444-6056 An Equal Opportunity Employer TTY: (800)335-7592 Fax: (406)444-7254 Web Page: www.mdt.mt.gov Montana Department of Transportation Michael T. Tooley, Director 2701 Prospect Steve Bullock, Governor PO Box 201001 fSION ZERO Helena MT 59620-1001 zero deaths zero serious injuries October 3, 2017 Craig Woolard City of Bozeman PO Box 1230 Bozeman MT 59771-1230 Subject: STPP 86-1(44)0 Rouse Ave-Bozeman 4805-004-000 Parcel 101 Final Payment Excess Land Sale-1804 N. Rouse Ave. Enclosed you will find Receipt#5017 acknowledging the remainder of$585,000.00 which is payment in full for the above referenced property that the City of Bozeman (City) is purchasing from the Montana Department of Transportation (MDT). In finalizing the transfer of this property from MDT to the City, there are several items that must be completed by either MDT and/or the City. They are as follows: • MDT and City - MDT has a Lease (attached) with Knife River (Lessee) which the City has agreed to honor (See offer letter dated 12/14/2016). MDT has prepared the "Assignment of Lease" (Assignment) to transfer the Lease to the City. The Assignment is enclosed and must be signed by MDT and the City. Once the City has signed the Assignment, please return it to MDT in the enclosed self-addressed stamped envelope. • MDT—As part of the Lease, MDT required a security deposit of$2000.00 from the Lessee. MDT will transfer the deposit to the City upon completion of the Assignment. • MDT - MDT has prepared the deed, and is working on getting it signed by the proper State officials. Upon completion of the Assignment, it will be sent to Gallatin County for recording. Currently all utilities for the property are in the name of the Lessee. Therefore, the City is responsible for transferring the utilities once they receive notification from MDT that the Project is complete and a Final acceptance form as outlined in Section 2 of the Lease has been submitted. If you have any questions, please call me at (406)444-9272. Thank you. Sincerely, (20 Catherine Ries Right-of-Way Specialist Real Estate Services Section cc: Jeffrey M. Ebert, P.E., District Administrator- Butte Christie Killeen, Right-of-Way Specialist-Helena Enclosures: Receipt#5017; Lease Agreement dated November 9, 2016 and Offer Letter dated December 14, 201 Engineering Division Web Page: www.mdt.mt.gov Phone: (406)444-6206 An Equal Opportunity Employer Road Report: (800)226-7623 or 511 Fax. (406)444-2486 77Y.- (800)335-7592 j ' Montana Department of Try ortation � 'Right—of—Way Bureau PO Box 201001 Helena, MT 59620-1001 otia. �i ROWIFORMS\RES\PRO\117 Revised 3/13/2004 State of Montana Department of Transportation Right-of-Way Bureau 2701 Prospect Avenue PO Box 201001 Helena, MT 59620-1001 R/W Project No.: STPP 86-1(44)0 Parcel No.: 101 Rouse Ave. — Bozeman 4805-044-000 CN Project No.: STPP 86-1(41)1 Rouse-Oak/Story Mill-Bozeman 4805-000 1804 N. Rouse Avenue, Bozeman MT 59715. LEASE AGREEMENT This agreement is made between the Montana Department of Transportation, P.O. Box 201001 Helena, MT 59620-1001, (406) 444-6387, hereinafter referred to as MDT and Knife River, Intermountain Region-Belgrade Division, PO Box 9, Belgrade, MT 59714, (406) 388- 6832, hereinafter referred to as LESSEE. WHEREAS, MDT possesses the hereinafter described Property, which is improved with a 6,580 sq. ft. wood/steel building. The building has 4,340 sq. ft.± partially finished retail/display area and 2,240 sq. ft.± of unfinished shop area that has two 12' X 14' overhead doors at the rear of the building and one 14' X 16' overhead door at the front of the building, the upstairs has 2,704 sq. ft.± of mezzanine storage. The central area of the building contains a small office, parts storage area, and reception desk area that are heated and have air conditioning; one restroom is located on the main floor that serves the whole building. The 58,425 sq. ft.± lot is fenced and gated with a graveled yard. A 448 sq. ft.± Butler's steel storage shed is also available for storage. WHEREAS, the LESSEE desires to lease said Property and Improvements upon the terms and conditions hereinafter set forth. NOW, THEREFORE, in consideration of the payments, covenants, and conditions herein set forth, MDT leases to the LESSEE the following described real Property: Pagel R/W Project No.: STPP 86-1(44)0 Parcel No.: 101 Rouse Ave.—Bozeman 4805-044-000 CN Project No.: STPIP 86-1(41)1 Rouse-Oak/Story Mill-Bozeman 4805-001 Parcel No. 101 on Montana Department of Transportation Project STPP 86-1(44)0, as shown on the Right-of-Way plan for said project recorded in the office of the County Clerk and Recorder of Gallatin County, Montana. Said parcel being a portion of the property conveyed under Film 95, Page 1605 and is also described as a tract of land within Certificate of Survey recorded under Film 1, Page 928 situated in U.S. Government Lot 2 (sometimes referred to as the NW%NEY4) of Section 6, Township 2 South, Range 6 East, P.M., M., Gallatin County, Montana, as shown by the shaded area on the plat, consisting of 1 sheet attached hereto and made a part hereof, containing an area of 58,425 sq.ft., more or less. 1. The purpose of this lease is for the LESSEE to utilize the Property for office space to stage and store supplies and/or equipment during construction of the Rouse Avenue- Bozeman (Oak to Story) highway project (Project). MDT reserves the right to occupy and use the leased area for all purposes not inconsistent with the use herein permitted. 2. The term of the lease is for the duration of the Project. The Lease will terminate when LESSEE submits a Final acceptance form to MDT. 3. MDT shall waive the monthly rental fee. In exchange, the LESSEE will not assign MDT a staging fee related to construction cost required for the Project. 4. MDT reserves the right to sell the Property during the construction phase, and will ensure any sale is made subject to this lease. 5. The LESSEE shall pay MDT a two thousand dollar ($2,000.00) security deposit upon execution of this agreement, which will be returned upon completion of the Project and a satisfactory inspection of the Property. In the event that the inspection by MDT reveals deficiencies or that certain appurtenances, permanent fixtures or built-ins, (i.e. light fixtures, existing fencing, overhead doors, etc.) associated with the Property have been removed or are absent from the Property, MDT has the right to use all or any portion of the security deposit, to purchase a comparable replacement, repair, clean up, or pay outstanding utility bills, after LESSEE vacates the Property, if necessary. 6. The LESSEE shall be responsible for all electricity, gas, water, sewer, trash or any other charges of like nature. 7. The LESSEE shall, at its own expense, keep the Property in a neat, safe, and habitable condition throughout the entire occupancy. No major repairs will be undertaken by MDT. Conversely, MDT will not reimburse the LESSEE for any repairs unless specifically agreed to prior to expenditure. 8. The LESSEE shall leave the Property and the road accessing this Property in as good, or better, shape than the pre-lease condition. 9. The LESSEE shall eradicate noxious weeds upon the Property during the occupancy, at their sole expense. Page 2 RfVV Project No.: STPP 86-1(44)0 Parcel No.: 101 Rouse Ave.—Bozeman 4805-044-000 CN Project No.: STPIP 86-1(41)1 Rouse-Oak/Story Mill-Bozeman 4805-001 10. The LESSEE shall, by the execution of the agreement, acknowledge and defend the title of MDT at all times. It is mutually understood and agreed that the execution of this lease shall not be construed as abandonment, relinquishment of title, or non-use of the Property. 11. The LESSEE agrees that no additional fixture, building, structure or other permanent installations shall be constructed or placed upon the Properly, without prior approval from MDT. 12. The LESSEE agrees that no encroachments will be placed on the highway right- of-way outside the area of the tract herein described. 13. The LESSEE agrees to prepare any necessary environmental documents and obtain any permits required by other governmental agencies at no expense to MDT. 14. The LESSEE shall not erect or permit to be erected any billboard or other outdoor advertising signs upon the land herein described. 15. The LESSEE shall refrain from deposition or discharging either intentionally or negligently any hazardous wastes upon the Property. LESSEE agrees to remove and undertake and pay all cost and expense associated with necessary clean up to the Property in the event of the LESSEE breach of this paragraph. LESSEE agrees to provide Phase I review for hazardous wastes if requested by MDT prior to or upon the termination of this lease. 16. LESSEE covenants and agrees it will hold,harmless and indemnify MDT from all actions, claims and liabilities to third parties, arising out of LESSEE use of the herein described Property. LESSEE covenants and agrees it will maintain General liability insurance, naming MDT as co-insured in the amount of one million dollars combined single limit per occurrence and two million dollars aggregate single limit per occurrence to cover all such actions, claims and liabilities and LESSEE agrees to provide proof of said insurance upon signing of this lease. Failure to provide said proof of insurance will be cause for terminating this lease. This insurance is a separate policy tied specifically to the Property. 17. The lease may be terminated on thirty (30) day notice in writing, addressed to LESSEE at the address above stated, by MDT for violation or breach of any terms, conditions, or covenants of this agreement, or if the leased area is needed for transportation purposes. It is agreed that if a public emergency necessitates the immediate use of the land herein described, MDT reserves the right to re-enter the Property without notice. The interests and personal Property of the LESSEE will be given such protection as is reasonably possible in the circumstances. 18. The LESSEE shall not sublease, rent, or permit the use of said Property without written consent of MDT. Page 3 R/W Project No.: STPP 86-1(44)0 Parcel No.: 101 Rouse Ave. —Bozeman 4805-044-000 CN Project No.: STPIP 86-1(41)1 Rouse-Oak/Story Mill-Bozeman 4805-001 19. It is mutually agreed this lease is subject to the right of any private or public utility now lawfully occupying the said lands to continue to operate and maintain utility facilities thereupon. 20. The LESSEE agrees not to permit any lien, mechanic or otherwise, to attach to or become an obligation against the tract herein described. 21. It is agreed the LESSEE will be responsible for any taxes or assessments against the tract herein described. 22. It is agreed the LESSEE shall not acquire a compensable interest in the leasehold estate during the term of this lease in the event all or a portion is required for highway purposes. This agreement shall be binding upon the heirs, successors, administrators, and assigns of the parties hereto. Page 4 RM Project No.: STPP 86-1(44)0 Parcel No.: 101 Rouse Ave.—Bozeman 4805-044-000 CN Project No.: STPIP 86-1(41)1 Rouse-Oak/Story Mill-Bozeman 4805-001 In witness whereof, the parties hereto have affixed their hands as written below and this document was executed on the date of the last signature. MDT: STATE OF MONTANA DEPARTMENT OF TRANSPORTATION Date: R 14 By Dne E. Kailey, P.E., ChiefEngineer hrhways & Engineering Division Approved as to m Content: Attorney LESSEE: r-a ole Date: By: Name: Title: G� Page 5 (50 Montana Department of Transportation Michael T. Tooley, Director 2701 Prospect Steve Bullock, Governor PO Box 201001 VISIONZERO Helena MT59620-1001 zero deaths zero serious injuries October 27, 2017 Dennis Taylor-City Manager City of Bozeman PO Box 1230 Bozeman MT 59771-1230 Subject: STPP 86-1(44)0 Rouse Ave - Bozeman 4805-044-000 Parcel 101 1804 N Rouse Ave. —Assignment of Lease/Security Deposit Dear Mr. Taylor, Enclosed please find the fully executed Assignment for the Knife River Lease Agreement (Assignment) and a check for$2000.00 for the security deposit that was held by MDT as part of the Lease (attached). The Assignment was part of the purchase between MDT and the City of Bozeman for the property located at 1804 N. Rouse Avenue (Letter dated 10/3/17 attached). If you have any questions, please call me at the number listed below. Thank you. Christie Killeen Right of Way Specialist Real Estate Services Section (406)-444-6387 cc: Jeffrey M. Ebert, P.E., District Administrator— Butte, w/attachment Knife River, w/attachment Right of Way Bureau Engineering Division Phone: (406)444-6056 An Equal Opportunity Employer TTY. (800)335-7592 Fax: (406)444-7254 Web Page: www,mdt.mt.gov