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HomeMy WebLinkAbout92- Law and Justice Center " . . CC(Q)~r LAW , JUSTICE CENTER MEMORANDUM OP UNDERSTANDING The city of Bozeman, Montana, (City) and Gallatin County, Montana, (County) do hereby agree and acknowledge as follows: WHEREAS, the City and the County have had discussions about the City locating its pOlice department and city court at the Law and Justice Center, owned and maintained by the County; and, WHEREAS, the County has hired an architect to prepare plans for the remodelling of the Law and Justice Center since the fire in September, 1990; and, WHEREAS, the City des ires to lease space in the remodelled portion of the Law and Justice Center (formerly the gymnasium area) for its pOlice department and city court and for shared space with the County; and, WHEREAS, the County has the authority under section 7-8-2231, MCA, to lease county property under certain conditions, and desires to lease space to the City in the Law and Justice Center for the city's police department and city court; and, WHEREAS, the County can expand the remodelling project at the Law and Justice Center to achieve functional efficiencies for the mutual benefit of the City and the County; and, WHEREAS, the County can undertake the remodelling project at the Law and Justice Center if the city prepays to the County an agreed upon sum of money as rent for a lease and the County agrees to enter into a lease; and, WHEREAS, the City and County desire to enter into this Memorandum of Understanding by which the city will pay to the County the prepaid rent under the terms and conditions set forth in a lease between the City and the County. NOW, THEREFORE, the City and County agree as follows: 1. SPACE The County agrees to enter into a lease with the city upon the completion of the remodelling project at the Law and Justice Center. The county will lease to the City the following space in the Law and Justice Center located in the area which formerly housed the gymnasium: 1 . . , city Space Police Department. . . . . . . . . . . .. 4,145 sq. ft. city Court . . . . . . . . . . . . . . .. 3.011 sq. ft. TOTAL City Space 7,156 sq. ft. Sbared SDaoe Dispatch, Locker Area, Lobby, Rest Rooms, Top Floor Records, Conference/interview/consultation room, Evidence/storage/lockers, etc. . . . . . . . .10,825 sq. ft. city's Portion: . . . . . . 10,825 X 37 1/2% = 4,059 sq. ft. County's Portion: . . . . . 10,825 X 62 1/2% = 6,766 sq. ft. County Spaoe Justice Courts. . . . . . . . . . . . . . . 4,744 sq. ft. Sheriff's Department. . . . . . . . . . .. 4.145 sq. ft. TOTAL County Space 8,889 sq. ft. 2 . DURATION OJ' LEASE It is the intention of the city and the County to enter into a lease for an initial term of ten (10) years and to renew the lease for two additional terms of ten (10) years for a total term of thirty (30) years. Section 7-8-2231, MCA limits the time a County can enter into a lease to ten (10) years. The initial lease shall be for a term of ten (10) years and will be renewed as provided in Section 8 of this Memorandum of Understanding. 3 . RENTAL FEES The City will pay to the County $560,000, which will consti- tute rent for three (3) rental terms of ten (10) years each. During the term. of the lease and renewals of the lease, the principal balance of $560,000 will be decreased by equal annual rental payments in the amount of $18,667, which is calculated at $1.66 per square foot for 7,156 square feet of city space. .. . METHOD OF PAYMENT Upon the execution of this Memorandum of Understanding the city shall pay to the County $60,000 as the City'S share of the archi tectural fees to date. It is the understanding of the parties that the $60,000 will be applied to the rent in Section 3. Thereafter, the City shall pay the balance of $500,000 to the County in amounts representing its proportionate share of the payments that the County is required to pay under the construction contract for the remodelling project. These payments shall be made upon receipt of contractor billing by the County. The City'S "proportionate share" is calculated according to the percentage of its square footage of the project using the city and County space as the total space. 2 5. OCCUPANCY It is understood and agreed between the parties that the payment by the city to the County of the rental amount during the construction project does not entitle the city to the immediate occupancy of the space to be leased to the City. Occupancy will occur when the remodelling project is completed and the lease is executed. The term of the lease shall not begin until construction is complete and occupancy is granted. 6. UTILITIBS AND MAINTENANCB The lease shall provide that the city will pay its monthly share of the actual cost of utilities, including electricity, gas, water, sewer and garbage. The city's share will be calculated on a prorated basis per square foot occupancy in the same manner as other county departments are charged for these costs at the Law and Justice Center. The detention center shall not be included in this calculation. The lease shall also provide that the city will pay the County for building maintenance, including but not limited to janitorial services and day-to-day exterior and interior maintenance, and building insurance in amounts to be negotiated and agreed upon each year. These costs shall be calculated in the same manner as utility costs. The projected costs and method of calculation for utilities, facilities maintenance, janitorial services and insurance are shown on the letter dated June 11, 1992, from the Gallatin County Commissioners to city Manager Jim Wysocki attached as Exhibit "A" to this Memorandum. It is understood that the amounts shown on Exhibi t "A" are proj ected and estimated amounts and are not binding upon the parties. 7. MAJOR MAINTENANCB PROJECTS The lease shall provide that in the first year and each succeeding year of the lease, the City and County will each pay the amount of $.95 per square foot of space (7,156 sq. ft. for the City and 8,889 sq. ft. for the County), excluding "shared space," per annum into a fund called the "Law and Justice Center Major Maintenance and Capital Projects Fund" to be used for major maintenance and capital improvement projects at the Law and Justice Center facility. Interest derived from this fund shall enure to said fund. The decision to spend and appropriate money from this fund shall be made jointly by the City and the County. The County shall contribute an equal amount based upon its square footage into the fund for the same purpose. A maximum of four (4) years' of accumulation, plus interest, will cause an annually-determined suspension of these contributions. 3 ~ For purposes of this paragraph the Major Maintenance and Capital Projects Fund applies to the entire Law and J"ustice Center building, exclusive of the Detention Center. Upon the termination or expiration of the lease any balance in this fund shall be divided between the city and County in the same proportion that the money was paid into the fund. 8. RDBWAL/TBRKIDTIOH 01' LEASE At the end of the initial ten year lease the lease will be automatically renewed for additional terms of ten (10) years, unless both parties mutually agree in writing not to renew the lease no later than three (3) years before the end of the term of each ten year lease. It is the intent that withdrawal or termi- nation may only occur at the ten year marks. If the city and County mutually agree to renew and extend the lease beyond thirty (30) years, an annual rent payment will be negotiated and Agreed to by both parties. The rental amount will be based on rental appraisals for larger, comparable office space for long term rentals, excluding profit and taxes. This results in a less than lOOt market rate. An agreement to renew and extend the lease shall be made no later than three (3) years before the end of the term of the third lease. If an agreement is not made by that time, the third lease shall terminate. If the city and County mutually agree to terminate the lease after the first ten (10) years, the County will refund $373,330 to the city for the unused portion of the rent at the end of the first ten years. If the City and county mutually agree to terminate the lease after the second ten years, the County will refund $186,660 to the City for the unused portion of the rent at the end of the second ten years. If the City and county mutually agree to terminate the lease after the third ten years, there will be no refund by the County. The refund amount is calculated according to the schedule attached as Exhibit "B" to this Memorandum. The annual reduction of the balance will begin at the start of the first year of the lease. SUbject to the above conditions for the lease and upon the payment by the City to the County of the amount stated in this Memorandum of Understanding, the parties agree that the county will proceed with the remodelling project at the Law and Justice Center. Dated this 22ndday of October 1992. , 4 , . " " . ::~ytt:=~~ ts Mayor /~..........~~-......" () ').. (' " C I -y"Q~J!;') r'. ~ , ~-' j '-.... c~co~~ Approyaa as" to,-legal content: / /. -------/ 7' /. /< '--- ?'-21()/ It,/~\, /(l({G~/ Bozema~'oitY Attorney / \ / // GALLATIN COUTNY COMMISSIONERS BY:~~. s Ch~iC/ ~ o ;# /,/{'~~<~' / . Mem15er ~ ~AO~~ ~ Member Approved as to legal content: ~~ ~~eY 5 . . .. ' . , , , . Concurred in by: f! e -~ rr Bozeman Chief of ~.lce ) Jus 6 " . . "': '. -. . , ~-~:.... County'Commisslon F~;- i~-, i.-i., ~;'~,~ ;...:- \ >...~,~-,-~-----..........._-.~ 1 r \\ "',. ....' ~I .....'... JI !~-,:/ \., /-':' J....':.., County of Gallatin 311 West Main - Room 301 f~' -:-~.ft~~..; Bozeman, Montana 59715 ,. .-....;i" ~", ;'~~,: ~\ ,...~i .J Telephone (406) 585-1400 '1 _. ~ J:: 1,\ '/i 1/ ;..- T elefax (406) 585-1403 \" .j,.~, . "---j" I,'''','' _"I_=-- 1\\"<,,. ~.~ ,\~/~~ June 1 1 , 1992 \\,,~.~~~~~::.:.:...- ,..."............................. Jim Wysocki, City Meneger City of Bozeman P.O. Box 640 Bozeman, MT 59'715 Dedr Jim, The following figures ore based an projections far the existing buildini for fiscel yedr 92/93. These o!!r8 what we now char2e all of our departments, We charge the department an the basis of actual office spaces, This excludes square footage for common spaces like hallways and rest rooms, m/llking the cost per square foot higher as it is calculated on less space, Facilities Maintenance: $2,51/ sq f,t Davis Maintenance: $1.49/ sq ft Utilities: $ 1 ,?9/ sq ft One can presume that the .sddition of 33,000 squ~re foot will reduce the squl3re footage ~mount far facili ties maintenance, as it is not our intent at this time to hire more personnel. The square foot cost for utilities, which include gas, electrici ty, sewer, weter, and garbage, should also go down slightly. The following are projected estimates of actual costs with the new addition. You can calculate your casts based on square footage of your actual office space, exclusive of halls, etc. - Facili[;ies Maintenance: $ 1 .04/ sq f't Davis Maintenance: $1.49/ sq ft Utilities: $1 ,79/ sq ft In9urance/City Only: $0.15/ sq ft EXHIBIT "A" , . . .... . . . . . . ". , "., . , . . . . . . CITY OF BOZEMAN LAW & JUSTICE CENTER RENT SCHEDULE BEGINNING PRINCIPAL 560,000,00 ANNUAL PAYMENTS 18,667,00 YEAR PRINCIPAL BALANCE 1 18,667.021 541,333.210 2 18,667.00 522,666.00 3 18,667,00 503,999,00 4 18,667,00 485,332,210 5 18,667.00 466,665,00 6 18,667.00 447,998.00 7 18,667.00 429,331.00 8 18,667,021 4 HI, 664.210 9 18,667.00 391,997.00 10 18,667.00 373,330,210 11 18,667,00 354,663.00 12 18,667.021 335,996.00 13 18,667.00 317,329.210 14 18,667,00 298,662,210 15 18,667.210 279,995.210 16 18,667.210 261,328.00 17 18,667.210 242,661,210 18 18,667.2121 223,994.021 19 18,667.00 2215,327.210 221 18,667,021 186,6621,210 21 18,666,210 167,994.21a 22 18,666.00 149,328.00 23 18,666,00 1321,662.00 24 18,666.00 111,996,210 25 18,666.210 93,330,00 26 18,666,00 74,664,00 27 18,666,210 55,998.210 28 18,666,00 37,332.021 29 18,666,00 18,666,00 321 18,666.021 ,021 TOTAL 5621,0210.210 EXHIBIT "'B"