HomeMy WebLinkAbout09- HRDC Public Transportation Storage and Repair Facility Real Property LeaseREAL PROPERTY LEASE FOR SITE OF Human Resource Development Council, Inc.
PUBLIC TRANSPORTATION STORAGE AND REPAIR FACILITY
WHEREAS, the Human Resources Development Council, Inc., a non-profit organization, desires
to lease property described below under Article 11 and owned by the City of Bozeman for
purposes of operating a transportation storage and repair facility (transportation facility)-, and
WHEREAS, the City of Bozeman desires to lease said property to Lessee; and
WHEREAS, the parties desire to enter into an agreement defining their respective rights and
duties as set forth herein.
I. PARTIES:
Th' real prop lease agreement ("Lease") entered into this �k day of
?�NT�hqk 2009 by and between CITY OF BOZEMAN, MONTANA a body
politic, having its principal place of business located at 121 N. Rouse Avenue, Bozeman,
MT, hereinafter referred to as "Lessor," and the Human Resource Development Council
(HRDC), a nonprofit corporation, as Lessee, with its principal place of business located at
32 S. Tracy Avenue, Bozeman, MT, hereinafter referred to as "Lessee."
(A) Lessor, for and in consideration of' the terms, conditions, covenants and
agreements herein contained, agrees to lease the real property situated in the City
of Bozeman. County of Gallatin, State of Montana, to Lessee, as shown on
Exhibit A: A .539 acre parcel of land located within the exterior boundaries of a
tract of land, described upon Record of Deeds Vol.97, pgs. 626-627, filed at the
office of the Clerk and Recorder of Gallatin County, situated in the SW1/4Sect 6,
T2S, R6E. City of Bozeman, Gallatin County, Montana, P,M.M., more commonly
known as 1812 N. Rouse Bozeman, MT 59715.
(B) Lessee, in coordination with Lessor, will construct a transportation facility funded
in part with federal funds to be used by Lessee in furtherance of public
transportation purposes. Any additional future construction activity beyond the
currently proposed facility of Lessee at the Lease site must be pre-approved by
Lessor.
(C) Lessee shall ensure that construction project payment and performance bonds
exist for any construction project engaged in with respect to the ]eased premises
legally described herein, Lessee shall be solely responsible for defending,
removing and satisfying any lien asserted against the leased premises arising out
REAL PROPERTY LEASE FOR SITE OF Human Resource Development Council, Inc,
PUBLIC TRANSPORTATION STORAGE AND REPAIR FACILITY
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of mutual construction activity, occupation or use of leased premises. Failure by
Lessee to pay and/or remove any such liens or encumbrances within thirty (30)
days of notice of filing the same shall allow the Lessor to remove said lien or
encumbrance and bill Lessee for the lien/encumbrance amount and all reasonable
costs associated with removal including a per hour cost for Lessor's employees'
time associated with removal. Lessor may add these costs to the yearly lease
payments or seek termination of this lease.
(D) Lessee shall ensure, with respect to any construction activity that occurs, that any
required prevailing wages for the construction project are paid as required by law.
(E) All Federally funded improvements made on this leased property shall remain in
ownership of Lessee during the term of the Lease and at expiration ownership of
any federally funded improvements shall automatically transfer to Lessor, subject
to federal disposition requirements in place at the time of disposition. If the Lease
is abandoned or terminated by either party prior to 40 years from execution of the
Lease ownership of all federally funded improvements made on the leased
property shall revert to the Montana Department of Transportation. If the Lease is
terminated by either party after 40 years from the execution of the Lease all
federally funded improvements made on the leased premises shall be deemed to
have outlived their useful life and shall be owned by Lessor subject to federal
disposition requirements in place at the time of disposition.
(F) Any fixture permanently affixed to either the land or building, as of the date the
Lease terminates or expires, so that it is not easily removable without damaging or
impairing the property it is attached to, shall be owned by the appropriate party
pursuant to the timelines and related ownership established above in Section 11 (E)
unless the parties otherwise indicate in writing. Articles or items of personal
property attached to the property that are easily detachable or removable without
damaging or impairing Lessee's use of the property or the property the article or
item is attached to, shall be the property of Lessee regardless of the timeliness
established above in Section II(E) and may be removed by Lessee.
(G) This Lease shall be subject to public utility or other easements of record that may
exist on the real property.
(H) Any building or improvements constructed or installed by Lessee for public
transportation purposes on the leased land shall be in compliance with the Federal
Americans with Disabilities Act.
(1) Lessee shall be responsible for the payment of any and all utility costs arising out
of Lessee's occupation or use of the transportation facility,
(J) Lessee shall be responsible for the daily administration, management, control and
operation of the transportation facility during the Lease period(s).
REAL PROPERTY LEASE FOR SITE OF Human Resource Development Council, Inc.
PUBLICTRANSPORTATION STORAGE AND REPAIR FACILITY
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(K) If Lessee decides to relocate its transportation facility site during the useful life of
the building, Lessee shall be solely responsible for the pro rata repayment of any
original construction monies to the United States Government.
(L) If Lessor terminates or interferes with Lessee's ability to use the leased property
during the first 30 years of this Lease so that Lessor may use the land for other
purposes, Lessor agrees to pay any remaining pro rata repayment monies that
would be owed to the United States Government arising out of federal monies
being used to pay for the original construction of the transportation facility less
any depreciation in the facility or improvements,
(M) Neither party shall interfere with transportation facility operations at any time
during the term of this Lease. Lessee shall maintain satisfactory continuing
control of all federally funded facilities on the leased premises.
(N) Lessee will report to Lessor operating data on a period acceptable to the parties.
Additional assessment and evaluation of the transportation facility will be made
annually in a report to the Lessor.
(0) Lessee, represented by HRDC, Inc. or its agent, and Lessor, represented by
Bozeman City Commission or its agent, shall meet at least quarterly, unless
Lessor and Lessee agree otherwise, to discuss all activities pertinent to the facility
site including development and submission of specific proposals regarding site
and related activities and discussion of all site activities.
(P) If parties have entered into a construction and financing agreement that details
each party's roles and financial responsibilities in the development of the leased
premises, the terms of said agreement shall not be superseded by the terms of this
Lease. Nothing herein shall prevent the parties from entering into any other
agreement regarding the operation, maintenance, or improvements to the leased
premises including construction of improvements related to any approval required
under City of Bozeman development regulations.
111. ALTERATIONS& REPAIRS
Once the facility is constructed, neither party may materially alter any improvements on
the leased premise without the other party's prior written consent,
IV. TERM AND RESERVATION OF LESSOR'S RIGHT TO TERMINATE
(A) Lessee shall have the right to daily control, management and administration of the
leased premises for as long as the leased premises are used for transportation
facility purposes for Ten Dollars ($10.00) per year for a term of ninety-nine (99)
years commencing upon execution of this Lease. Lessor and Lessee may agree to
revisions of the Lease at anytime during the lease.
REAL PROPERTY I-EASE FOR SITE OF Human Resource Development Council, Inc,
PUBLICTRANSPORTA STORAGE AND REPAIR FACILITY
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(B) The parties acknowledge and agree the Lessee shall pay to the Lessor
$140,873.04 in cash at the time of execution of this Lease as payment for the
appraised value of the unimproved leased premises for the term of the lease, This
amount is valuable consideration for entering this Lease and is not refundable to
Lessee or any federal or state agency. As an alternative to a cash payment, Lessee
may, upon written approval by Lessor, provide $140.873.04 in improvements to
the Lessor's property. Any such improvements made shall be considered fixtures
of Lessor's real property and not be subject to federal disposition rules.
(C) Lessee shall be responsible for obtaining property. casualty or liability insurance
for any building or improvement and shall identify Lessor as an additional insured
on any property insurance policy and if the premises. building or improvement are
rendered untenable by fire or other casualty, Lessee shall immediately take action
to ensure the safety of the site and within thirty (30) days present to Lessor a plan
for repairing, rehabilitating or removing any unsafe or untenable condition. Proof
of insurance coverage shall be provided to Lessor prior to occupancy by Lessee,
and insurance coverage shall remain in effect throughout the term of the lease,
(D) Lessee agrees that the insurance proceeds from any insured loss with respect to
any portion of the premises, including but not limited to any construction thereof,
will be used to restore, rebuild, or clear the land unless otherwise indicated in
writing by Lessor,
(E) Lessee shall acquire and maintain for the term of the lease, including any renewal,
liability insurance for personal injury including death, as well as third party
property damage, in the amount of Seven Hundred Fifty Thousand and no 0/100
Dollars ($750,000.00) for each occurrence with One Million Five Hundred
Thousand and no 00100 Dollars ($1,500,000.00) umbrella coverage, and shall
name Lessor as additional insured on the policy. Lessor will acquire and maintain
comparable insurance through Montana Municipal Interlocal Authority, self-
insurance fund, treating Lessee as an additional named insured. Coverage
amounts shall be renegotiated at least every three (3) years during the Lease term,
including any renewals thereof. Lessor shall, at all times during the term of this
Lease and at Lessor's sole expense, keep all improvements which are now or
hereafter a part of the premises insured against loss or damage by fire for one
hundred percent (100%) of the full replacement value of such improvements, with
loss payable to Lessor and Lessee as their interests may appear. Any loss
adjustment shall require the written consent of both Lessor and Lessee.
V. MAINTENANCE OF PREMISES:
(A) Lessee agrees that during the course of this, Lease it shall keep the transportation
facility in good repair and in a safe and healthy condition for public use of the
property during the term of the Lease and upon abandonment or termination of
this Lease will yield up the premises to Lessor, subject to federal disposition
regulations in place at the time of disposition, in good condition and repair.
ordinary wear excepted.
REAL PROPERTY LEASE FOR SITE OF Human Resource Development Council, Inc.
PUBLIC TRANSPORTATION STORAGE AND REPAIR FACILITY
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(B) Lessee acknowledges Lessor's right to impose user fees for the purpose of site
maintenance. Terms and conditions will be mutually agreeable to Lessor and
Lessee,
V1. SIGNS AND ADVERTISING:
Lessee signs are to be in conformity with City of Bozeman sign regulations. Lessor and
Lessee will jointly be responsible for all informational signage, directing the public as to
facilities and usage.
VII. SUBLETTING OR ASSIGNMENT OF LEASE.
Lessee shall neither sublet nor assign any of its interest or rights in this Lease or the
premises to any person, corporation or other entity for any purpose without written
consent and approval of the Lessor and the Federal Transit Administration,
VIII. COMPLIANCE WITH LAWS, REGULATIONS, AND RESTRICTIONS:
Lessee and Lessor shall comply with all laws, ordinances, orders, rules, and regulations
(state, federal, municipal and other agencies, or bodies having any jurisdiction) relating to
the use, condition, or occupancy of the leased premises. Lessor and Lessee will comply
with provisions of all appropriate federal and Montana laws, including Title VI and Title
V11 of the Civil Rights Act of 1964. Parties agree that the hiring of persons to perform
work will be made on the basis of merit and qualifications without discrimination on the
basis of race, religion., sex, age, creed, marital status, political belief, physical or
developmental disabilities, or national origin. Lessee shall indemnify and save and hold
Lessor harmless from Lessee's violation of any laws and ordinances. Lessee will operate
a drug—free workplace.
IX. LESSEE TO INDEMNIFY, HOLD HARMLESS AND DEFEND LESSOR.
Lessee agrees to indemnify, hold harmless and defend Lessor against any and all actions.
liabilities, judgments, costs, damages and expenses which may arise out of Lessee's use
of the premises or which may accrue against, be charged to or recovered from Lessor by
reason or on account of damage to the leased premises or operations conducted at the
leased premises including acts of Lessee's agents, contractors and subcontractors. Any
final judgments rendered against Lessor resulting from any cause for which Lessee is
liable with respect to the leased premises, shall be conclusive against Lessee as to
Lessee's liability and amount. All property of Lessee stored on the leased premises shall
be so kept or stored at the risk of Lessee, and Lessee shall hold Lessor harmless from any
claims arising out of damage to the same, including subrogation. claims by Lessee's
insurance carrier.
REAL PROPERTY LEASE FOR SITE OF Human Resource Development Council, Inc.
PUBLIC TRANSPORTATION STORAGE AND REPAIR FACILITY
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X. ASSESSMENTS AND TAXES:
Lessee and Lessor shall be each responsible for paying one-half of any Street
Maintenance., Tree Maintenance, Lighting special improvement district, sidewalk or other
special assessment assessed during the Lease period. Lessee shall be responsible for all
utilities (including but not limited to gas, electric, water and sewer, phone, cable, and/or
internet service) directly serving the leased premises and if any utilities are shared with
Lessor Lessee shall be responsible for a pro rata share of utility costs based upon an
energy use model mutually agreed upon b y I the parties.
Lessee shall, upon execution of this Lease, apply to the Montana Department of Revenue
for exempt status for all real property taxes associated with the premises and federally
funded improvements thereon. If tax exempt status is not given, Lessee shall be solely
responsible for all property taxes for the leased premises and associated improvements.
XL LEASE PROVISIONS BINDING ON SUCCESSORS IN INTEREST:
Lessor and Lessee agree that the provisions and covenants of this Lease shall be binding
upon, apply and inure to any successors in interest or assigns of the respective parties to
the extent assigns are authorized in Paragraph VII, above.
XII. TERMINATION OF LEASE PURSUANT TO LESSEE'S DEFAULT OR
.,4.R.4-NDONMENT:
(A) If Lessee ceases using the leased premises as a transportation facility, Lessor may
deem Lessee's abandonment as Lessee's termination of this lease.
(B) If either party otherwise desires to ten this lease, the terminating party may
do so by giving one hundred and twenty (120) days written notice to the other
party.
(C) In the event of any breach of any provision, term, covenant or condition contained
in this Lease by Lessee, Lessor shall give written notice to Lessee by certified or
registered mad in the event of a breach. Should Lessee fail to correct the breach
within thirty (30) days of the date of the notice, Lessor reserves the right to
terminate this lease. Failure or neglect of Lessor to act upon any breach of one or
more provisions, terms, covenants or conditions contained herein shall not
constitute or be construed as a waiver of any subsequent breach of any kind by
Lessee and Lessor reserves the right that it may act on any breach that occurs.
Lessor may also terminate the Lease if Lessor determines that there is a public
need to use the premises for another purpose.
Lessor reserves the right to terminate this Lease if Lessee is in default with
respect to compliance with the provisions of this Lease or Lessee abandons or
voluntarily terminates its use of the premises or Lease rights.
REAL PROPERTY LEASE FOR SITE OF Human Resource Development Council, Inc.
PUBLIC TRANSPORTATION STORAGE AND REPAIR FACILITY
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Whenever it is necessary for a party to provide notice to the other party, notices to the
respective parties shall be mailed or personally delivered to the other party as follows:
LESSOR: City of Bozeman
PO Box 1230
Bozeman, MT 59771
LESSEE: Human Resource Development Council, Inc.
32 S. Tracy
Bozeman, w 59771
Lessee, at its sole cost and expense, shall cause this Lease to be recorded and filed with
the Gallatin County Clerk and Recorder within 10 business days of execution of this
Lease by both parties.
K11 I I owl 0 Ulf
It is Lessor and Lessee's intent that if for any reason a final court ruling, invalidates any
provision, covenant, term or condition of this "
le se, all remaining provi s, covenants,
i
terms or conditions shall remain in full rne se,
LESSOR:
Chris A. Kukulski, Jeff Ru I
City Manager, Bozeman NIT Presi %C CF 1,O,, H
AT 1
Macy Ulm !�Bbz, effiiwCity Clerk
0 1
Approved ia 4 on behalf of the City of Bozeman only:
Grc(o Bozeman City Attorney
REAL PROPERTY I-EASE FOR SITE OF Human Resource Development Council, Inc,
PUBLIC TRANSPORTATION STORAGE AND REPAIR FACILITY
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