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HomeMy WebLinkAbout94- Law and Justice Center, Gallatin County ~ cc if: , , . . , , " . .' I ' 'f-01{ " , LAW AND JUSTICE CE....NrER GALLATIN COUNTY - CITY OIf.BOZEMAN LEASE ,- r-. < Gallatin G9~nty, Montana, (County) and the city of Bozeman, Montana; ,( city) do hereby enter into this lease and agree and acknowledge as follows: WHEREAS, the County and City entered into a Memorandum of Understanding on October 22, 1992, wherein the county and City agreed to enter into a lease by which the City will lease space at the Gallatin County Law and Justice center; the City agreed to pay prepaid rent to the County for the leased space; and the County agreed to remodel the Law and Justice center; and WHEREAS, the County has the authority under Sections 7-8-2201 and 7-8-2231, to lease county property and desires to lease space to the city in the Gallatin County Law and Justice Center for the City's police department and city court; and \ WHEREAS, the City desires to lease space in the Gallatin county Law and Justice Center for its pOlice department and city court and for shared space with the county. NOW, THEREFORE, the county and City agree as follows: ARTICLE I - LEASED SPACE section 1.01 - Description. Tne County leases to city, on the terms and conditions stated below, the following space in the Gallatin County Law and Justice Center located in the area affected by the remodel and renovation completed in the fall of 1994 as shown on Exhibit "A": city Space Police Department. . . . . . . . . . . . . 2,888.42 sq. ft. city Court . . . . . . . . . . . . . . . . 2.328.57 Sq. ft. TOTAL City Space 5,216.99 sq. ft. Shared Space Dispatch, Locker Area, Lobby, Employee Only Rest Rooms, Top Floor storage, Conference, Interview and Consultation Rooms, etc. . . . . . . . . . . . . . . .. 6,292.15 sq. ft. city's Portion: . . . . 6,292.15 X 38.79% = 2,440.86 sq. ft. County's Portion: . .. 6,292.15 X 61.21% = 3,851.29 sq. ft. . . ' .' . 11 , i 'i section 1.02 - County's Space. The following description of the county's space is shown for illustrative purposes only and is not included in this Lease: county SDace Justice Courts. . . . . . . . . . . . . . . 3,734.99 sq. ft. Sheriff's Department. . . . . . . . . . . . 3,023.59 sq. ft. 3rd floor space reserved for County. . . . . 1. 473.33 sa. ft. TOTAL County Space. . . . . . . . . . . 8,231.58 sq. ft. Section 1.03 - Use of Leased Space. The City may use the leased space for operating and maintaining its police department and city court and other city administrative uses. Any other use of the leased space is prohibited except with the written consent of the County, which approval shall not be unreasonably withheld. Section 1.04 - parking. Parking for the Law and Justice Center complex shall be provided in accordance with the master plan for the complex. The final design will be based on recommendations of the architect and engineers with the approval of the County Commissioners. parking areas will be designated by the County commissioners on a priority basis for the following vehicles: emergency vehicles, ADA parking, pUblic parking, elected officials and staff. Areas may be designed for the following: drop-off zone, bus stop areas, Shipping and receiving areas, snow storage and bicycle parking. All areas shall be vacated as necessary for snow removal, paving and repair and maintenance with reasonable notice. Section 1.05 - Administration of the Building. provisions for the administration of the building, such as security and admissions to the building after working hours, shall be made in a subsequent written addendum to this Lease. ARTICLE II - TERM Section 2.01 - Initial Term. The initial term of this Lease shall be for ten (10) years and shall commence when the County grants occupancy of the leased space to the City on November 1, 1994, and shall end on October 31, 2004. Section 2.02 - Additional Terms. This Lease may be renewed for three additional terms of ten years each for a total of forty (40) years as provided in Article VIII. ARTICLE III - RENTAL section 3.01 - Rent. The City shall pay to the County rent in the total amount of $765,000, receipt of which is hereby acknowl- edged by the County, which will constitute rent for four (4) rental terms of ten (10) years each. Section 3.02 - Decrease of Principal Balance. During the 2 I. '.. ' . initial term and renewals of this Lease, the principal balance of $765,000 will be decreased by equal annual rental payments in the amount of $19,125 according to the schedule shown on Exhibit "B". ARTICLE IV - UTILITIES, MAINTENANCE AND SECURITY section 4.01 - Utilities. The city shall pay its monthly share of the actual costs 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 Gallatin County Detention Center shall not be included in this calculation. The City shall be responsible for its telephone costs and utilities not specifically mentioned in this section. Section 4.02 - Mainten.ance. The City shall pay the County for building maintenance, including but not limited to janitorial services and day-to-day exterior and interior maintenance in amounts to be negotiated and agreed upon each year. These costs shall be calculated in the same manner as utility costs. section 4.03 - Security. The city shall be responsible for providing security to the Bozeman City Court, including the courtroom, jUdge's office, jury room and clerk's office. The County shall be responsible for providing security to the Gallatin County Justices' Courts, including the courtrooms, justices of the peace offices, jury rooms and clerk's office. ARTICLE V - MAJOR MAINTENANCE PROJECTS section 5.01 - Major Maintenance. In the first year and each succeeding year of this Lease, the County and City shall each pay the amount of $.95 per square foot of space (5,217 sq. ft. for the City and 8,232 sq. ft. for the County), excluding "shared space," per annum into a fund called the "City/County Building Maintenance Fund" (Fund) to be used for major maintenance and capital improve- ment projects at the Law and Justice Center facility. This Fund shall be maintained by the County. Interest derived from this Fund shall be credited to the Fund. section 5.02 - Suspended contributions. A maximum of four (4) years' of accumulation, plus interest, will cause an annually- determined suspension of contributions to the Fund. Section 5.03 - Application of Fund. For purposes of this section the Fund applies to the entire Law and Justice Center building, exclusive of the Detention Center. The decision to spend and appropriate money from this Fund shall be made jointly by the County and City. section 5.04 - Balance Remaining. Upon the termination or 3 . ' . . "'" expiration of this Lease any balance in the Fund shall be divided between the City and County in the same proportion that the money was paid into the Fund. section 5.05 - Alterations to Building. ~he City may make such interior alterations on the leased space as desirable for the conduct of its business, as long as such improvements do not alter the basic character of the leased space or the building. Changes that alter the infrastructure of the building, including but not limited to plumbing, heating and electrical systems, shall be approved in writing by the County. City shall not make exterior alterations or additions, or structural changes to the premises without prior written consent of County. Within thirty (30) days of the completion of the alterations the city shall provide drawings and documentation of the alterations to the County. Upon termination of this Lease, the County shall have the right to purchase such improvements from the City at their fair market value, to be mutual agreed upon between the County and city. If the city and County are unable to agree on the valuation of the improvements, such fair market value shall be determined by three appraisers, one to be chosen by the City, one to be chosen by the county and one by the two chosen appraisers. If the County does not desire to purchase the improvements, the City shall remove them from the leased space provided that in doing so the City leaves the leased space in as good as repair as the space is at the present time and the leased space is not damaged or made unf it for occupancy by reason of the removal of the improvements. ARTICLE VI - INDBKHITY AND INSURANCE section 6.01 - city IndelUlity. The City agrees fully to indemnify, save harmless and defend the County, its commissioners, officers and employees from and against all claims and actions and all expenses incidental to the investigation and defense thereof, based upon or arising out of damages or injuries to third persons or their property, caused by the negligent or intentional act or omission, in whole or in part, of the city, its employees or invitees in the use or occupancy of the leased space and shared space or on account of damage or injury, including death, to property or persons caused by or due to any use of the leased space by the City, its employees or invitees but only in proportion to and to the extent such claims, actions, or expenses are caused by or result from the negligent or intentional act or omission of the city, its employees or inviteesi and, provided that the County shall give to the city prompt and reasonable notice of any such claims or actions and the City shall have the right to investigate, compromise and defend the same, provided such claim is not the result of a negligent or intentional act, or omission of the County. section 6.02. county Indemnity. The County agrees fully to indemnify, save harmless and defend the city, its commissioners, 4 ~ . . . i. t officers and employees from and against all claims and actions and all expenses incidental to the investigation and defense thereof, based upon or arising out of damages or injuries to third persons or their property, caused by the negligent or intentional act or omission, in whole or in part, of the County, its employees or invitees in the use of the non-leased space or ownership of the premises or on account of damage or injury, including death, to property or persons caused by or due to any use of the non-leased space by the County, its employees or invi tees but only in proportion to and to the extent such claims, actions, or expenses are caused by or result from the negligent or intentional act or omission of the County, its employees or inviteesi and, provided that the City shall give to the County prompt and reasonable notice of any such claims or actions and the County shall have the right to investigate, compromise and defend the same, provided such claim is not the result of a negligent or intentional act, or omission of the County. section 6.03 - Buildinq Insurance. The City shall pay the County for building insurance in an amount the County negotiates with its insurance carrier upon each year. This cost shall be calculated in the same manner as utility costs pursuant to section 4.01- Section 6.04 - Equipment and Valuable Documents Insurance. The city shall keep any and all of its equipment, materials, supplies and valuable documents placed on the leased space or Gallatin County's real property upon which the leased space is located continuously insured with an insurance underwriter(s) and authorized to do business in Montana. Section 6.05 - Comprehensive General Liability Insurance. The City shall maintain comprehensive general liability insurance for the protection of the city, its commissioners, officers, servants and employees, insuring the City against liability for damages because of personal injury, bodily injury, death or damage to property, including loss of use thereof, and occurring on or in any way related to the leased space or shared space or occasioned by reason of the operations of the City with insurance of not less than Seven Hundred Fifty Thousand Dollars ($750,000) for each claim and One Million Five Hundred Thousand Dollars ($1,500,000) for each occurrence. Section 6.06 - Evidence ot Insurance. The City shall furnish to the County a certificate evidencing the date, amount and type of insurance that has been procured pursuant to this Lease. ARTICLE VII - DEFAULT section 7.01 - Event ot Default. Because the city has prepaid the rent under this Lease, default is the failure of the city to make any payments, meet any expenditures or comply with any of the 5 ; , . I . . conditions or terms required by this Lease other than rent. section 7.02 - Remedies on Default. If default is made by the City, the county shall give written notice (default notice) by certified mail of the nature of the default to the city. If the City disputes that it is in default then the City shall notify the county in writing of the same with its reasons (dispute notice) within thirty (30) days of the receipt of the default notice. Upon receipt of this written dispute notice, a representative of each party shall meet within ten (10) days to attempt to resolve the dispute or controversy. In the event the parties, after such meeting, are unable to resolve the dispute or controversy, each party shall appoint one arbitrator, and the two arbitrators shall appoint another, who shall arbitrate the matter and the decision of the majority of whom shall be final. Each party shall be solely responsible for the costs of its appointed arbitrator and equally responsible for the costs of the arbitrator appointed by the two arbitrators. The arbitrator shall only issue a decision with respect to the dispute and has no authority to change the terms of the lease. If the city does not remedy the default within thirty (30) days or declare the matter in dispute by issuing a dispute notice within thirty (30) days of the receipt of the default notice, this lease shall terminate. If the property is abandoned by the City in connection with a default, termination shall be automatic and without notice. Section 7.03 - Damaq... If the Lease is terminated under this Article, the County shall be entitled to keep the prepaid rent as liquidated damages for the term of the Lease during which the termination or default occurred for so long as the leased space remains unoccupied, not leased or otherwise not utilized; and provided, however, that the liquidated damages do not exceed a sum equal to five (5) annual payments. Because the City has prepaid the rent the city and County agree that in the event of termination under this Article that the City shall be entitled to be reimbursed the prepaid rent for subsequent terms only following the term in which the termination occurred and prepaid rent not constituting liquidated damages. The County shall reimburse the balance of the prepaid rent to the city for subsequent terms in annual payments on the first working day of January following the termination at the rate of $19,125.00 per year for five (5) years without interest. The balance of the prepaid rent owed to the city under this paragraph shall be paid without interest on the first working day of January after the five annual payments have been made. section 7.04 - Liability after Termination. If the Lease is terminated under this Article, the City shall vacate the property immediately, remove any property of the city including any fixtures which the City is required to remove at the end of the Lease term, perform any clean up, alterations or other work required to leave the property in the condition required at the end of the term and deliver all keys to the County. The city shall be liable to the 6 , . , '. . I' County only for damages caused to the leased space by its removal of property under this section. Section 7.05 - Costs. If the lease is terminated under this Article, the city shall pay to the county the reasonable costs of reentry including without limitation the cost of any clean up, refurbishing, removal of the City's property and fixtures, or any other expense occasioned by the city's failure to quit the premises upon termination and to leave them in the required condition, including any remodeling costs, attorney fees and court costs. section 7.06 - Reentry after Termination. The County may reenter, take possession of the leased space and remove any persons or property by legal action. ARTICLE VIII - RENEWAL/TERMINATION Section 8.01 - 10 Year Renewals. At the end of each of the first three ten year terms this Lease will be automatically renewed for an additional term 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 each term. It is the intent of the County and the city that withdrawal or termination may only occur at the ten year marks. section 8.02 - Renewal Beyond 40 Years. If the City and County mutually agree to renew and extend the Lease beyond forty (40) years, an annual rent payment will be negotiated and agreed to by both parties. The rental amount will be based on rental appraisals for comparable off ice space for long term rentals, excluding profit and taxes. This results in a less than 100% 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 fourth term. If an agreement is not made by that time, the fourth lease shall terminate. section 8.03 - Termination. If the City and County mutually agree to terminate the Lease after the first ten (10) years, the County will refund $573,750 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 $382,500 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, the County will refund $191,250 to the city for the unused portion of the rent at the end of the third ten years. If the city and County mutually agree to terminate the Lease 7 : .' after the fourth 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 Lease. The annual reduction of the balance will begin at the start of the first year of the Lease. Section 8.04 - surrender of Premises. Upon termination of the Lease for any reason, the City shall deliver all keys to the County and surrender the leased premises and space in good condition. Improvements made to the leased space shall be disposed of according to the provisions of section 5.05 of this Lease. Depreciation and wear from ordinary use for the purpose for which the premises were let need not be restored, but all repair for which the city is responsible shall be completed to the latest practical date prior to such surrender. If the County determines that it is in the best interests of the County to change the locks for the leased space, the City shall pay the costs of the labor and materials to change the locks. ARTICLE IX - GENERAL PROVISIONS Section 9.01 - Assiqnment of Interest or Riqhts. Neither the City nor any assignee or other successor of the City shall in any manner, directly or indirectly, by operation of law or otherwise, sublease, assign, transfer or incumber any of the City's rights in and to this Lease or any interest therein, nor license or permit the use of the rights herein granted or the premises in whole or in part without the prior written consent of the County, and which consent shall not be unreasonably withheld. section 9.02 - Non-waiver. waiver by either party of strict performance or any provision of this Lease shall not be a waiver of or prejUdice the party's rights to require strict performance of the same provision in the future or of any other provisions. section 9.03 - Attorney's f.es. If a suit or action is instituted in connection with any controversy arising out of this Lease, the prevailing party shall be entitled to recover in addition to costs such sum as the court may adjudge reasonable as attorney's fees, inCluding the fees and salaries of in-house counsel, or in the event of appeal as allowed by the appellate court. section 9.04 - Time of Essence. It is mutually agreed that time is of the essence in the performance of all covenants and conditions to be kept and performed under the terms of this Lease. Section 9.05 - warranties/Guarantees. The County makes no warranty, guarantee or averment of any nature whatsoever concerning the physical condition of the leased space. section 9.06 - Headings. The articles and section headings 8 : . I , . . . . contained herein are for convenience and reference and are not intended to define or limit the scope of any provisions of this Lease. section 9.07 - Consent of the County. Whenever consent, approval or direction by the County is required under the terms contained herein, all such consent, approval or direction shall be received in writing by the Gallatin County Commissioners, Gallatin County, Montana. s.ction 9.08 - Notic.s. All notices required under this Lease shall be deemed to be properly served if delivered in writing, personally or sent by certified or registered mail to the last address previously furnished by the parties hereto. Until hereafter changed by the parties by notice in writing, notices shall be sent to the Chairman of the Gallatin County Commission, Courthouse, 311 West Main st., Bozeman, Montana 59715, and to the City Manager, City of Bozeman, Box 640, Bozeman, Montana 59715. The date of mailing shall be deemed the date of giving such notice and service thereof. S.ction 9.09 - Entir. Agr....nt. This Lease, including the attached exhibits, is the entire agreement between the parties. No alterations, modifications, or additions to this Lease shall be binding unless reduced to writing and signed by the parties to be charged herewith. No covenant, term or addition to this Lease hall be deemed waived by either party unless such waiver shall be reduced to writing and signed by the parties. If there are any differences in the conditions and terms of the Memorandum of Understanding dated October 22, 1992, or addenda thereto and this Lease, the Lease controls. Section 9.10 - Amendaents. The terms and conditions of this Lease may not be modified or amended except by an instrument in writing executed by each of the parties hereto. No oral modifica- tion shall be enforceable. Modification of the Lease as to term, area or any reason shall result in renegotiation of the rental. Section 9.11 - Severability. The provisions of this Lease shall be deemed independent and severable, and the invalidity, partial invalidity, or unenforceability of any one provision or portion thereof shall not affect the validity or enforceability of any other provision herein. Dated this ~ day of November , 1994. 9 . . , : 1 . , ,- GALLATIN COUNTY By: ~~h~~ M er _K ~ ~ uJYLNV Member o legal content: 10 . ' . , EXHIBIT A Consists of 6 sheets and a cover sheet. Pages one through three are floor plans of the remodeled space. The leased space per Section 1.01 can be identified as follows: a.y'. portion is indd.ed by CownIy 's portion is incIiQtcd by s__ space is indicated by /xxxx I P'l1~ SDIC:e.. ~ by I I Pages four throu&h six list sqDml fDolIItes of cech $J*C. by blueprint 5J*e number and how 1 is aJIocUed, The DMI\' ,1IId WOIDlD'l' ,lociIr.... _ not ~sp_ltiId on the fat Iocr piIn. \.. , I' . r..' IJ I.~. I... ,.,., . J.' 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'-" '.-' - ---. - ---, -..' 8, US '1.21" Second Fkx>r 1,767.fJ4 Tot.1 .J'N.2.2 ...u-._~_~:~.~. ....~.....---:. .:~:---.:. r~::'~~.. ..-_... .3,!:~.!! ... ...... .. - . ~ OJ. ---- -.. -. -.---~-_~_._._____.__. ______4__' _-,._.:..t-.-_.. _.__.__~__~_ ._~_ __....l........_.~~_._~.-...~---. ._.___._~.._.__ . " City i 7,"7.15 " County 1- _ >,~_: .:: ~__~:-~',- --, _~~ ~~~----t~Q~~)1.t,-~_-,:~_=_=_==,~.~=~_~.~~_~' ,'~_==-=-_._~~._-.~~ '~_~=~-, ~ _-,'~--,.~,:_',~' -.:-,:',,~. I .. ... --. ----~.-. _h_____...___. -....__ - ~_..___.____ _._~_.__.__. _.~. _.---.__~__.~_ ___..____~_._.. __ _____......_ _ .-...___ __.~ __.._ ___'~4___. -_ - __.. . . - . . --. > .__._- . ---____ ~_._ -_.__...__-...~_ _____ ___.___ ___ ._____. ___.d.____..~__.__.~ _.___~,_,_._ "R__'.~_____ _~_ .__ __.._..._._ _._ _ . - -. . - -. . . . _ -. . ~ --~_ _ _. - _. _ _ ___. -_._._.~__ ._ ___.___.__.._ ____.. . _.. ~.__..~,_ ._. .._ __ _. _ _'_ ..._ ,_. ... _.'_ . _~___~_. .__ __ ,... ~.,.. __. n_._ ".. ~ ,_. .__. _... _ _. _. .. _._. ~._ ,_. _ _ _ _ _4 ~___ _ . _. ... ._ _ . Th e .'-.;--.-'.'. --- --- ;-'-' ------ - .-.------,-- --,.--.,- ",--------.-,--,- --", --- -~,---.. , . . . . . . '. ,~~ . . ., . 4 .. . . . .. EXHIBIT "B" LAW & JUSTICE CENTER RENT SCHEDULE BEGINNING PRINCIPAL $765,000.00 ANNUAL PAYMENTS 19,125.00 YEAR PRINCIPAL BAlANCE 1 19,125.00 745,875.00 2 19,125.00 726,750.00 3 19,125.00 707,625.00 4 19,125.00 688,500.00 5 19,125.00 669,375.00 6 19,125.00 650,250.00 7 19,125.00 631,125.00 8 19,125.00 612,000.00 9 19,125.00 592,875.00 10 19,125.00 573,750.00 11 19,125.00 554,625.00 12 19,125.00 535,500.00 13 19,125.00 516,375.00 14 19,125.00 497,250.00 15 19,125.00 478,125.00 16 19,125.00 459,000.00 17 19,125.00 439,875.00 18 19,125.00 420,750.00 19 19,125.00 401,625.00 20 19,125.00 382,500.00 21 19,125.00 363,375.00 22 19,125.00 344,250.00 23 19,125.00 325,125.00 24 19,125.00 306,000.00 25 19,125.00 286,875.00 26 19,125.00 267,750.00 27 19,125.00 248,625.00 28 19,125.00 229,500.00 29 19,125.00 210,375.00 30 19,125.00 191,250.00 31 19,125.00 172,125.00 32 19,125.00 153,000.00 33 19,125.00 133,875.00 34 19,125.00 114,750.00 35 19,125.00 95,625.00 36 19,125.00 76,500.00 37 19,125.00 57,375.00 38 19,125.00 38,250.00 39 19,125.00 19,125.00 40 19,125.00 .00 TOTAL 765,000.00