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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 Page I of 7 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 Page 2 of 7 (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 Page 3 of 7 (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 Page 4 of 7 (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 Page 5 of 7 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 Page 6 of 7 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 Page 7 of 7 Mal H NOISIAIGUS SUM 1131101 �j 'VW3209 Jo 71113 Mix xvic, 11VNIA I J- Ila z 0 UO r-, 0 co Ln V) 8 u uj 0 a o rrs 0 t I; M M c ea 1 x EXHIBIT L—J L.J Eli 1z 7 ti n. rT t E 4 uj c ea 1 x EXHIBIT L—J L.J Eli 1z 7