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HomeMy WebLinkAbout89- Beall Park Lease i , . ~ .\ , , . LEASE THIS LEASE, made and entered into this 11th day of September , 1989, by and between The City of Bozeman, a municipal corporation of the State of Montana, located at 411 East Main, Bozeman, Montana 59771-0640, hereinafter referred to as "Lessor, " and Beall Park Arts Center, Inc. with mailing address of 409 North Bozeman Street, Bozeman, Montana 59715, hereinafter referred to as "Lessee"; WIT N E SSE T H: It is mutually understood and agreed by and between the parties hereto as follows: 1. Premises: Lessor, for and in consideration of the utilities to be paid, improvements to be made and the covenants to be performed by the Lessee, does hereby lease, let and demise unto Lessee the following described premises situated in the City of Bozeman, County of Gallatin, State of Montana, to wit: All of that building known as the Beall Park Building located in Beall Park on North Bozeman Avenue between Villard and Short Streets except the warming room for skaters measuring approximately 15' x 28' and located in the building's southwest corner. The Lessee agrees to provide a public skaters' warming room if the 15' X 28' space is not available in the Beall Park Building. This space must be deemed acceptable by the City Zoning Administrator and the City Parks Superintendent. The Lessor agrees to permit Lessee to use the skaters' warming room during the off-season periods of time when the ice rink in Beall Park is unavailable for public use. 2. Terms: a. To have and to hold the above rented premises unto the Lessee for and during the full term of five (5) years, from and after the 15th day of February, 1989, to and including the 14th day of February, 1994, unless sooner terminated as hereinafter provided. ~ ( , ',' . b. It is understood and agreed that if the Lessee shall, during the demised term, well and faithfully perform all of the covenants and conditions contained in this Lease, and if the Lease is not terminated during said term, then the Lessee shall have the right and privilege, at its option, to extend the demised term for one additional period of five (5 ) years. To exercise such option, Lessee shall give notice in writing by registered mail at the address hereinafter set forth of its offer to renew said Lease, sixty (60) days prior to the termination of the term herein specified. Any extension or renewal shall be upon the same covenants and conditions contained in this Lease. c. It is specifically understood and agreed that any holding over or continued use and/or occupancy by Lessee of the leased premises after the expiration of this lease or any properly extended period thereof shall operate and be construed as a tenancy from month to month on the same conditions in force at the expiration of said lease. 3. Utilities: a. Lessee shall have all utilities, electricity, gas, water and sewer placed in its name and shall pay all bills therefore, including any cost for electricity consumed by the skaters' warming room and the toilet facilities located outside the building on its west side. 4. Care of Premises, Improvements by Lessee: a. Lessee, at its own expense, shall supply full janitorial service to the building. Further, Lessee shall provide and maintain the entire building in satisfactory working condition, including but not limited to proper heating, plumbing, light fixtures and bulbs and all utilities. Except, however, these responsibilities shall not extend to the toilet facilities located outside the building on its west side. b. After termination of this lease, whether by forfeiture or expiration of the terms of said Lease, Lessee will redeliver -2- ;. " " ' , possession of said premises to the Lessor in as good condition and state of repair as the same shall be at the time this Lease takes effect, reasonable wear and tear and damage by the elements excepted; provided, however, that the Lessee shall not make any changes or alteration in the building or to its structure nor place any signs on the building or the premises without first having obtained the written consent of the City Manager or such other person as the City Manager may designate in writing. c. In the event this Lease is terminated for any reason by Lessor, the Lessor agrees to pay to the Lessee an amount equal to the remaining unamortized balance of the cost of those improvements which have been approved by the City Manager in writing and for which a statement of completion has been filed with the Clerk of the Commission within sixty (60) days of completion that describes the nature of the improvement and the cost thereof. The total cost of such improvements, but in no event exceeding a total amount of Thirty-Five Hundred Dollars ($3,500) , shall be amortized over a period of ten (10) years from the date of the statement of completion as follows: The total cost of any improvement shall be divided by ten and the amount of the quotient subtracted from the total cost upon the first anniversary of this Lease, and upon each successive anniversary the amount of the quotient shall be subtracted from the declining balance through the tenth year when the balance shall be zero. This provision shall not extend to any termination of this Lease by Lessee or Lessee's failure to renew the Lease as provided in paragraph 2(b). Nor shall the amortization apply to improvements which have not received written approval or for which a statement of completion has not been filed as provided herein. 5. Use of the Premises: It is understood and agreed that this Lease is made for the purpose of permitting Lessee to use the premises for housing a community arts center and Lessee further agrees that it will not use or permit the use of demised premises contrary to any valid -3- . , ' " laws of the State of Montana or ordinance of the City of Bozeman. 6. Right to Sublease the Premises: The Lessee will not assign this Lease or sublet the premises, or any part thereof. 7. Default: In the event Lessee fails to fulfill any of the covenants herein contained and any such default continues unremedied for a period of sixty (60 ) days after written notice specifying such default shall have been mailed to the Lessee, then and in such event, it shall be lawful for Lessor to enter and take full and absolute possession of the above rented premises and to hold and enjoy the same fully and absolutely or the Lessor may reenter and remove Lessee and those claiming under it by means of summary proceedings prescribed by the laws of Montana. Lessee expressly waives any notice of proceedings required by law to be given or taken preliminary to reentry by Lessor under the terms hereof. 8. Indemnification. Insurance: a. Lessee agrees to indemnify and save Lessor harmless of and from any and all liability, damage, expense, cause of action, suits, claims or judgments resulting from injury to person or property occurring within the leased premises or on the adjoining property which arise out of the act, failure to act, or negligence of Lessee, Lessee's agents, employees' invitees or guests. b. Lessee further agrees that it will, at all times during the term of this Lease, maintain and pay for comprehensive general liability insurance affording protection to the Lessor and Lessee, naming the Lessor as an "additional insured" under the policy or policies for combined bodily injury and property damage limit of liability of not less than Five Hundred Thousand Dollars ($500,000) , each occurrence. Lessee further agrees to deliver to Lessor, prior to the commencement of the term hereof, a certificate or certificates of an insurance company or insurance companies satisfactory to Lessor, evidencing such -4- '. .', ' , . " insurance and that the Lessor is named as an "additional insured" on the comprehensive general liability insurance policy or policies. 9. Property Insurance. a. Lessor agrees that it will, during the original term hereof, or any extension thereof, keep in effect upon the leased premises, such insurance as it deems necessary on the shell of the building and such fixtures as are a part of the building as leased. b. It is agreed that if the demised premises shall be so damaged by fire or other casualty as to be rendered totally untenantable, and amount virtually to the complete destruction thereof, this Lease shall cease and come to an end as to both parties. c. Lessee shall be solely responsible for all fixtures and leasehold improvements made by it as well as for all personal property belonging to it or any third party and may insure such as Lessee desires. 10. Cancellation of Lease Either party may terminate this lease agreement by delivery to the other party of at least ninety (90) days written notice of the termination and the effective date thereof. 11. Miscellaneous Covenants and provisions: a. Lessee agrees to conform to such reasonable regulations as may be established from time to time by the Lessor. b. Neither Lessee nor Lessor shall be deemed to have waived any provision of this Lease unless such waiver is in writing signed by the Lessor and Lessee; and no modification of this Lease shall be binding unless in writing. c. Lessor shall have the right to reenter upon and into the demised premises or any part thereof at all reasonable times to inspect the same or to make any repairs or improvements which it may desire or which might be required to it. Further, access will be allowed by Lessee to Lessor to the "hose room" in the -5- , l '~, .< . ' . <' basement via the west stairway to get hoses and equipment for the skating program. d. The covenants and conditions of this Lease shall be deemed continuing and any forbearance by Lessor to enforce forfeiture on the occasion of one or more breaches thereof, shall not be construed as a waiver of the right to enforce such forfeiture on any subsequent breach. e. All notices prescribed herein shall be written and served by registered mail and directed to Lessor at P.O. Box 640, Bozeman, MT 59771-0640, Attention: City Manager, or such other place as Lessor may specify in writing, and to Lessee at 409 North Bozeman Street, Bozeman, MT 59715, Attention: Secretary or President of the Board, or at such other place as Lessee may specify in writing. f. It is mutually agreed and understood that in the event either party hereto shall bring any legal action against the other to enforce any right or obligation based upon this Lease, each party shall bear its own costs and expenses of any kind and nature whatsoever incident to the prosecution or defense of such action or the preparation thereof, including attorneys fee s . g. It is mutually agreed that time shall be of the essence of this Lease, that the terms hereof shall bind the successors and assigns of the parties and that all prior understanding of the parties, either written or oral are merged herein and that this document constitutes the entire understanding of the parties. h. The provisions of this lease are severable and the invalidity or unenforceabi1ity of any provision of this lease shall not effect or impair any other provision. i. Lessee agrees to keep the property free of all liens during the existence of this lease or any renewals thereof and it is expressly agreed that the Lessor shall not be liable for any obligation incurred on or in connection with said premises by the Lessee unless otherwise herein provided. It is agreed that no liens may be filed against the Lessor's interest herein by reason of such obligation. IN WITNESS WHEREOF, the parties hereto have caused this -6- , . .. ," . . . " instrument to be duly executed the day and year first above written. BEALL PARK ARTS CENTER, INC. By !~ f--- ~v Its President Lessee Attest: , /&e; t" " .'....----.' , ,/,/ ,/ ' '/ By <C?c!~&LJutL~:.&.' / ~--' Secretary ! THE CITY OF BOZEMAN ~ ~ B~~~'" / C,C t , ~" Its ~ /1)1 ~'" ~trt/L Lessor Attest: (2~ c! J!$~ Clerk of the City Commission -7-