HomeMy WebLinkAboutFinally Adopt Ordinance No. 1792, space lease with MSU-Extended University.pdf1
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: James Goehrung, Director of Facility Services
Chuck Winn, Assistant City Manager
SUBJECT: Ordinance No. 1792 authorizing the City Manager to enter into a 1-year
space lease with MSU-Extended University for the lease of an office and training classroom
located in the Alfred M. Stiff Professional Building at 20 East Olive.
MEETING DATE: September 13, 2010
AGENDA ITEM TYPE: Consent
RECOMMENDATION: Authorize the City Manager to enter into a 1-year lease with
MSU-Extended University for the lease of office and training classroom space in the basement of
the Alfred M. Stiff Professional Building at 20 East Olive.
BACKGROUND: The City of Bozeman has leased space in the Alfred M. Stiff Professional
Building since the city purchased and remodeled the property after the sale of the old Carnegie
Library. MSU College of Great Falls, now MSU-Extended University has leased classroom and
office space in the basement of the building since August 2000.
In exchange for the lease of the classroom and office space the University holds two spaces open
for City of Bozeman employees for any non-credit class, with a class fee less than $150.00.
During the first reading of this ordinance Commissioner Taylor asked for a summary of the
number of employees that were enrolled in the classes. Since enrollment in the classes is
coordinated with the Personnel Department they reviewed the enrollment and provided the
summary on the chart below.
The University is charged a pro-rated share of the custodial costs associated with the
Professional Building. The University is charged for the space they have in the building based
on the price per square foot cost for cleaning.
The lease agreement is for one year but there is a provision in the lease that allows for two, one
year extensions for a total of up to three years overall. The extensions are also in one year
increments and must be upon mutual agreement of both parties.
Section 2.11 of the Bozeman City Charter requires the Commission to adopt an ordinance any
time the Commission "convey(s), lease(es)or authorize(s) the conveyance or lease of any lands
of the city."
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Section 7-8-4201, Montana Codes Annotated (MCA) authorizes the City to lease property upon a
vote of two-thirds (2/3) of the Commission which requires an affirmative vote of four members
of the five member Bozeman City Commission.
This Ordinance will not be codified but will be kept by the City Clerk and entered into a
disposition list in numerical order with all other ordinances of the City and shall be organized in
a category entitled “Conveyances and Leases of City Land.”
MSU College of Technology
City of Bozeman Free Slots
Semester Cost # Classes high ticket/unusual/cool items.
Spring 2010 $222 2
Summer 2010 $346 3
YTD
Total
$568 5
Spring 2009 $3,473 31 Welding, aviation & interior design
Summer 2009 $452 5
Fall 2009 $418 34
Total $4,343 70
Spring 2008 $1,010 15 private pilot ground school
Summer 2008 $759 11
Fall 2008 $1,084 13
Total $2,853 39
FISCAL EFFECTS: In exchange for the use of the space in the building, the terms of the
lease require 2 spaces to be made available in each class taught by the University. In addition to
this benefit the University pays $1,622.13 per year toward the custodial cleaning expenses for the
building.
ALTERNATIVES: As suggested by the City Commission.
Attachments: Ordinance 1792
Lease Agreement
Report compiled on: September 2, 2010
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ORDINANCE 1792
Page 1 of 3
ORDINANCE NO. 1792
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A 1-YEAR
LEASE WITH MSU-EXTENDED UNIVERSITY FOR THE LEASE OF OFFICE AND
CLASSROOM SPACE IN THE ALFRED M. STIFF PROFESSIONAL BUILDING AT 20
EAST OLIVE, FOR THE PURPOSE OF A COMPUTER TRAINING LAB.
WHEREAS, the City of Bozeman desires to lease office and classroom space in the
Alfred M. Stiff Professional Building located at 20 East Olive, for a computer training lab and
office space as it has done since August 2000; and
WHEREAS, said lease allows up to 2 City of Bozeman employees to enroll in each non-
credit class taught by MSU-Extended University. The lease also requires the University to pay a
pro-rated share of the custodial costs for the building based on square footage, currently
$1,622.13 per year.
WHEREAS, MSU-Extended University has indicated their desire to renew said lease;
and
WHEREAS, the lease of this property benefits the public interest because city
employees are able to receive professional training; and
WHEREAS, Section 2.11 of the Bozeman City Charter requires the Commission to
adopt an ordinance when the Commission "convey(s), lease(es)or authorize(s) the conveyance or
lease of any property of the city;" and
WHEREAS, Section 7-8-4201, MCA, authorizes the City to lease property upon a vote
of 2/3 of the Commission which requires an affirmative vote of four members of the five
member Bozeman City Commission; and
WHEREAS, should this Ordinance never be finally adopted by the City Commission, the
lease shall have no binding effect.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
CITY OF BOZEMAN, MONTANA:
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ORDINANCE 1792
Page 2 of 3
Section 1
The City Commission hereby authorizes the City Manager to enter into the attached 1-year
space lease (Exhibit A) with MSU-Extended University for lease of office and classroom
space in the Alfred M. Stiff Professional Building, located at 20 East Olive, Bozeman, MT.
The lease is incorporated herein by reference and made a part of this Ordinance. The lease
has a provision by which the lease can be renegotiated at the end of one year and extended
for up to two additional one year extensions for a total of three years.
Final execution of the lease is dependent upon final adoption of this Ordinance No. 1792
and as such the City Manager cannot execute the lease until 30 days after second reading of
this Ordinance.
Section 2
Repealer.
All provisions of the ordinances of the City of Bozeman in conflict with the provisions of
this ordinance are, and the same are hereby, repealed and all other provisions of the
ordinances of the City of Bozeman not in conflict with the provisions of this ordinance
shall remain in full force and effect.
Section 3
Savings Provision.
This ordinance does not affect the rights and duties that matured, penalties that were
incurred or proceedings that were begun before the effective date of this ordinance. All
other provision of the Bozeman Municipal Code not amended by this Ordinance shall
remain in full force and effect.
Section 4
Severability.
That should any sentence, paragraph, subdivision, clause, phrase or section of this
ordinance be adjudged or held to be unconstitutional, illegal, or invalid, the same shall not
affect the validity of this ordinance as a whole, or any part or provision thereof, other than
the part so decided to be invalid, illegal or unconstitutional, and shall not affect the validity
of the Bozeman Municipal Code as a whole.
Section 5
Codification.
This Ordinance shall not be codified but shall be kept by the City Clerk and entered into a
disposition list in numerical order with all other ordinances of the City and shall be
organized in a category entitled “Conveyances and Leases of City Land.”
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ORDINANCE 1792
Page 3 of 3
Section 6
Effective Date.
This ordinance shall be in full force and effect thirty (30) days after final adoption.
PROVISIONALLY PASSED by the City Commission of the City of Bozeman, Montana,
on first reading at a regular session held on the 23rd day of August, 2010.
____________________________________
JEFFREY K. KRAUSS
Mayor
ATTEST:
_______________________________
STACY ULMEN, CMC
City Clerk
FINALLY PASSED AND ADOPTED by the City Commission of the City of Bozeman,
Montana on second reading at a regular session thereof held on the 13th day of September,
2010. The effective date of this ordinance is October, 13, 2010.
_____________________________________
JEFFREY K. KRAUSS
Mayor
ATTEST:
_______________________________
STACY ULMEN, CMC
City Clerk
APPROVED AS TO FORM:
_______________________________________
GREG SULLIVAN
City Attorney
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LEASE AGREEMENT
This lease agreement was entered into on October 15th, 2010 between the City of Bozeman
(“Lessor”) and MSU-Extended University, (“Lessee”). Lessor is the sole owner of the business premises
described below, having office space for lease in such premises. Lessee is in the business of
education/training and desires to lease office space from Lessor.
1. DESCRIPTION OF PREMISES: Lessor leases to lessee premises on the lower level of the
building known as the Alfred M. Stiff Building, located at 20 East Olive, Bozeman, Montana, under the
Terms and Conditions set forth in this lease. Lessee does hereby hire and take as the tenant
[Suite/Room] LL10, to be used for the purpose of classroom and office, and for no other purpose.
2. TERM: The term of this lease shall be for a period of one (1) year, commencing on the 15th day
of October, 2010, and terminating the 14th day of October, 2011, unless sooner terminated as set forth in
this lease, or unless lessee has exercised the option to renew under provisions set forth in this lease
agreement. The agreement may, upon mutual agreement, be extended for a period of one year at a time,
with no more than two, (2), such extensions allowed, for a total of 3 years under this original agreement.
Negotiations for the extension of this agreement shall be completed not less than sixty days prior to the
termination of the agreement.
3. FEES AND SERVICE CHARGE:
A. In exchange for the use of the space covered in this lease agreement MSU-Extended
University provide 2 (two) spaces in each scheduled non-credit class, with a class fee less than
$150.00, for City of Bozeman employees at no charge.
B. In addition to the lease payment the “Lessee” shall pay a portion of the custodial costs for
the building. This amount is $1.39 a square foot for 1,167square feet, $1,622.13 per year or $135.18
monthly.
4. PARKING:
A. Lessee shall have the nonexclusive use, in common with the other Lessees of the lease premises,
to the parking areas for the building. During normal working hours, Lessee will whenever possible park
in the building’s parking lot across the alley from the main parking lot or in the south row of the main
parking lot. Lessee and Lessee’s employees shall not park in the north row of the main parking lot
during normal business hours.
B. In any event, the use of the parking facilities shall at all times be subject to reasonable rules and
regulations that the Lessor may promulgate, when, in the Lessor’s opinion it is necessary to insure
facilities for the business invitees and customers of the Lessees and Lessor. Lessee further recognizes
that the Lessor makes no guaranty of any specific number of parking spaces. Lessor shall have no
obligation to police of enforce parking usage by Lessees, or invitees, or the agents, servants, or
employees of Lessor or Lessees. In the event that Lessor finds that the use of the parking facilities by
Lessee or employees of Lessee interferes with its use by other Lessees and their patients and or business
invitees, then Lessee shall cooperate with Lessor in requiring Lessee and Lessee’s customers and
business invitees to refrain from using the parking facilities, this right reserved unto Lessor.
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5. RESTRICTIONS ON USE:
A. Lessee is familiar with the premises and that the taking of possession of the leased property shall
be conclusive evidence that the leased premises were at the time of the taking of possession in good,
clean, sanitary and leaseable condition, and is in all respects satisfactory and acceptable to the Lessee,
and is in the condition in which it was represented to the Lessee to be or agreed to be put into by the
Lessor, and the Lessee hereby releases the Lessor from any and all claims arising from any defects in the
condition of the said leased premises, the streets, alleys, areas, area ways, passages, or sidewalks
adjoining or appur Lessee thereto.
B. Lessee will not use or permit anything to be used or done upon the said premises that might be
dangerous to life or limb and that the Lessee will not in any manner deface or injure the said premises or
do anything that will increase the rate of insurance thereon, or permit anything to be done upon said
premises, or in the passageways, alleys, areas, area ways, sidewalks, or streets adjacent thereto, which
will amount to or create a nuisance, or interfere with the other occupants of the premises.
C. Lessee may use and occupy the leased premises for the purpose of the conduct or the practice of
educations and training activities and activities incidental thereto, and not otherwise. Lessee shall not
use or knowingly permit any part of the leased property to be used for any unlawful purposes, and shall
comply with all of the laws and regulations of the City of Bozeman, State of Montana, and the United
States of America.
6. ALTERATIONS AND MODIFICATION; REPAIRS:
A. Lessee will keep the said leased property in clean and sanitary condition, without any obligation
on the part of the Lessor to make any alterations or improvements of any kind in or about the premises,
and that the Lessee will repair or replace promptly all damages to the premises due to the acts of the
Lessee, its agents, or its invitees.
B. Lessee will make no alterations in, or additions to, the said premises without first obtaining the
Lessor’s written consent and the Lessee will not erect or permit to be erected upon the premises any
signs without the written consent of the Lessor.
C. With respect to all alterations or improvements to said premises which the Lessee under-takes
with the written consent of the Lessor, that the Lessee shall in each instance save said Lessor forever
harmless and free from all damages, loss and liability of every kind and character which may be
claimed, asserted, or charged, including liability to adjacent owners and Lessees, based upon the acts of
negligence of the Lessee or its agent, contracts, or employees for any negligence or for the failure of any
of them to observe and to company with the legal requirements of the City of Bozeman, and that the
Lessee will preserve and hold the Lessor and the said premises forever free, clear and harmless from
liens for labor and materials furnished.
D. Except as herein set forth to the contrary, Lessor shall bear the expense of all repairs,
maintenance, alterations, or improvements as it, in its sole discretion, determines required on the leased
property.
7. RIGHT TO REDECORATE: Lessee shall have the right from time to time to decorate and
redecorate the leased property, at Lessee’s sole expense, all of which shall be done in a good and
workmanlike manner, and with the prior written consent of Lessor. Lessor upon the building upon
which the leased property is located, and does hereby indemnify the hold Lessor harmless in connection
therewith.
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8. CONDITIONS AND PEACEFUL POSSESSION: Except as provided in paragraph 9, Lessor
covenants and agrees that the premises shall be maintained in good repair and Lesseeable condition,
excepting in case of damage resulting from the negligent or intentional acts of the Lessee, its servants,
agents, and employees, and business invitees, and further, as long as Lessee continues to make class
space available to city employees as outlined in Section 3A, pays the custodial charges as outlined in
Section 3B, and follows the covenants and agreements herein contained and performed Lessee shall
peacefully and quietly have, hold and enjoy the leased property for the term aforesaid and any extension
thereof.
9. UTILITIES: All applications and connections for necessary utility services on the demised
premises shall be made in the name of lessees only. Lessee shall be solely liable for utility charges as
they become due, including, but not limited to, those of sewer, water, gas, electricity, security, and
telephone and data services. Lessee is responsible for any phone or data services. Lessee is responsible
for Telephone/TV installation and all charges for services thereafter.
10. LIABILITY OF LESSOR:
A. Lessee agrees that the Lessor shall not be liable for any damage or injury either to person or
persons or property or for the loss of property sustained by the Lessee or by any other persons on the
leased premises due to any act of negligence of the Lessee.
B. Lessee will indemnify lessor on account of any damage or injury to any person, or to goods of
any person, arising from the use of the demised premises by lessee, or arising from the failure of lessee
to keep the demised premises in good condition as provided in this lease agreement.
C. Lessor shall not be liable to lessee for any damage by or from any act of negligence of any other
occupant of the same building, or by any owner or occupant of adjoining or contiguous property.
D. Lessee agrees to pay for all damage to the building, as well as all damage or injury suffered by
tenants or occupants of the building caused by the misuse or neglect of the demised premises by lessee.
11. DESTRUCTION OF PREMISES:
A. It is agreed between the Lessor and the Lessee that if during the term of this lease the leased
premises or the improvements thereupon shall be injured or destroyed by fire or other unavoidable
casualty or rendered unleaseable by public authority without the failure of Lessor, so as to render the
leased property unfit for occupancy, or to such an extent that the premises cannot be repaired with
reasonable diligence in sixty (60) days from the happening of such injury, or act, then the Lessor may
terminate this lease as of the date of such damage, act or destruction and the Lessee shall immediately
surrender the leased property and all interest therein to the Lessor, and the Lessee shall pay rent only to
the time of said destruction or act.
B. If the leased property can be restored within sixty (60) days from the happening of such injury
thereto and the Lessor within fifteen (15) days from the occurrence elects in writing to repair and restore
said premises within the sixty (60) days from the happening of the injury thereto, then this lease shall
not end or terminate on account of such injury by fire or otherwise, but the dollar amount paid for
custodial services shall not run or accrue after injury and during the process of repairs, except only that
the Lessee shall during such time pay a pro-rated portion of the custodial payment apportioned to that
portion of the leased property which are in condition for occupancy or which may actually be occupied
during repairing periods.
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C. If, however, the leased property shall be so slightly injured by any cause aforesaid as not to be
rendered unfit for occupancy, then the Lessor shall repair the same with reasonable promptness, and in
that case, the rent shall cease or be abated during such repairing.
D. All equipment, appliances, fixtures, improvements, or betterments placed by the Lessee on the
leased premises which shall be damaged or destroyed in any of the events aforementioned, shall be
repaired and replaced by the Lessee at its owner expense and not at the expense of the Lessor. Except as
herein set forth, Lessor shall not be held to account for any damages to Lessee attributable to the acts or
omissions of Lessor’s, providing however, Lessee shall immediately report any failure or defect to
Lessor who shall repair or correct such defects with reasonable diligence.
12. ASSIGNMENT AND SUBLEASE: Lessee agrees that it will not sublet the leased property or
any part thereof and will not assign this least or any interest therein or permit such lease to become
transferred by operation of law or otherwise and will not commit any act or acts which will cause the
lease to become sublet or assigned in whole or in part unless the written consent of the Lessor endorsed
thereon shall first be obtained. Lessee may associate other individuals of the same discipline and
profession as Lessee and such association shall not be deemed subletting under the terms of this
Agreement.
13. BREACH OR DEFAULT: If the leased property shall be deserted or vacated, or if proceedings
are commenced against the Lessee in any Court under bankruptcy, or for the appointment of a trustee or
receiver of the Lessee’s property either before or after the commencement of the leased term, or there
shall be a default in the payment of any rent or any part thereof, for more than fifteen (15) days, or if
there shall be a default in the performance of any covenant, agreement, condition, rule or regulation
herein contained, or hereafter established on the part of the Lessee for more than fifteen (15) days after
written notice of such default by the Lessor, Lessee’s rights in this lease (if the Lessor so agreements
shall be deemed to be taken to be a waiver of any succeeding breach thereof.
14. KEY AGREEMENT, ACCESS:
A. Lessee shall have a MEDECO key to the building upon which the leased property is located, and
to the leased property. Lessee acknowledges and agrees that, as a condition of this lease, that the
MEDECO key is a registered key in a registered MEDECO SYSTEM governing access to the facility
under lease and lessee is physically and financially responsible for the safekeeping of such MEDECO
key. In the even of loss of the MEDECO key, Lessee further acknowledges responsibility for the full
cost of the replacement of such key(s) and if necessary the cost of rekeying locks and cutting new keys
for building tenants. Upon termination of the Lease agreement, Lessee shall voluntarily surrender the
assigned MEDECO key(s).
B. The building in which the leased property is located shall be open for entry of Lessee, Lessee’s
employees and business invitees. Lessee may have access to the leased property at all times, in
connection with his/her business. Lessee shall have the duty of keeping the entry to the building secure
during such times, so the unauthorized personnel may not enter after the business hours, from 8:00
o’clock a.m., until 5:00 o’clock p.m., Monday through Friday.
C. Lessee will permit the Lessor at all reasonable times as allowed by law, to enter the leased
property to inspect its condition and at Lessor’s election to make reasonable and necessary repairs
thereon for the protection and for the preservation of the property, also the Lessor shall the right to enter
upon the leased property to ascertain its condition or to ascertain the performance or non-performance of
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any of the covenants of his lease or to show the premises to persons who may wish to rent the same after
the expiration of this lease agreement.
15. INSURANCE: Lessee shall keep the leased property insured throughout the term of this lease
as follows:
The parties hereto understand and agree that the Lessee is an agency of the State of Montana and is self-
insured under the provisions of Title 2, Ch. 9, Montana Codes Annotated. MSU will maintain insurance
required for state agencies as provided under Title 2, Ch. 9, Montana Codes Annotated. The statutory
limits of liability are $750,000.00 for each claim and $1.5 million for each occurrence. A certificate of
insurance will be provided upon the start of the lease period.
Any provisions of this agreement, whether or not incorporated herein by reference will be controlled,
limited and otherwise modified to limit any liability of the State of Montanan and MSU to that set forth
in the above cited laws.
16. SURRENDER UPON TERMINATION:
A. Lessee, upon leaving the premises hereby leased, shall at its own expense repair any damage
occasioned by Lessee’s occupancy and remove all dirt, rubbish and refuge, and upon the Lessee’s failure
to do so, the Lessor may immediately, without further notice, do so at the Lessee’s expense, which the
Lessee shall immediately pay upon receipt of a bill for the same from the Lessor.
B. Lessee agrees to return the leased property peacefully and promptly to the Lessor at the end of
the term of this lease, or at any previous termination in as good condition as the same are in or hereafter
put in, ordinary wear expected.
C. The Lessee shall on the last day of the term, or upon sooner termination of the term, peacefully
and quietly surrender the leased property to the Lessor in as good condition as it was at the beginning,
reasonable wear and tear expected. Lessee shall remove all of its property so that Lessor can repossess
and enjoy the leased property not later than noon on the day upon which the lease ends, whether upon
notice or by holdover or other wise. Lessor shall have the same right to enforce this covenant by
ejectment for damages or lease. Lessee may at any time before or upon termination of this lease remove
from the leased property all equipment, property and fixtures installed by Lessee provided such property
is moved without substantial injury of the leased property. No injury shall be considered substantial if it
is property corrected or restored to the condition prior to the installation of such property. Any such
property not removed shall become the property of the Lessor. Any injury not repaired may be
corrected by Lessor, and Lessee shall promptly reimburse Lessor upon receipt of its statement therefore.
17. RESTROOM FACILITIES: Lessor shall provide restroom facilities on the premises for the
use of Lessee and Lessee’s agents, employees, and business invitees, provided further, that Lessee’s use
thereof shall not be exclusive but to the contrary, shall be in common with all the other Lessees,
employees and business invitees occupying or using the building.
18. SECURITY DEPOSIT: No deposit required for state agencies
19. HOLDING OVER: If Lessee shall remain in possession of the leased premises after the
expiration of either the original term of this lease or of any extended term, except pursuant to an exercise
of option to renew, such possession shall be as a month to month tenancy, with consent of Lessor. If
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Lessee holds possession of the demised premises after the term of this lease agreement, Lessee shall
become a tenant from month-to-month on the terms specified in this lease agreement. Lessee shall
continue to be a month-to-month tenant until the tenancy shall be terminated by Lessor, or a new lease is
executed, or until Lessee has given to lessor a written notice at least one month prior to date of
termination of the monthly tenancy of Lessee’s intention to terminate the tenancy.
20. NOTICE:
A. All notices, demands, or other writings in this lease agreement provided to be given or made or
sent, or which may be given or made or sent, by either party to the other, shall be deemed to have been
fully given or made or sent when made in writing and deposited in the United States mail, registered and
postage prepaid, and addressed as follows:
To Lessor: Facilities Director, City of Bozeman, P.O. Box 1230, Bozeman, MT 59771-1230
To Lessee: MSU-Extended University Montana State University, P.O. Box 173860 Bozeman, MT
59717-3860B. The address to which any notice, demand, or other writing may be given or made or sent
to any party above provided may be changed by written notice given by such party as provided.
C. Lessee shall provide Lessor with a contact list to include at least one person that can be reached
in the event of an emergency or for any occasion when Lessee is out of town or otherwise available.
Such list will be kept current and updated as necessary.
21. TIME OF ESSENCE: Time if of the essence of this lease with respect to the performance by
the Lessee of its obligations thereunder.
22. ENTIRE AGREEMENT: This lease agreement shall constitute the entire agreement between
the parties. Any prior understanding or representation of any kind preceding the date of this lease
agreement shall not be binding upon either party except to the extent incorporated in this lease
agreement.
23. MODIFICATION OF AGREEMENT: Any modification of this lease agreement or additional
obligation assumed by either party in connection with this agreement shall be binding only if evidenced
in a writing signed by each party or an authorized representative of each party.
24. ATTORNEY’S FEES: In any legal action brought by either party to enforce any of the terms of
the Agreement, the prevailing party shall be entitled to all costs and expenses incurred in connection
with such action, including a reasonable attorney’s fee. Any and all legal action brought under this lease
or related to this agreement must be brought in Gallatin County.
25. PARAGRAPH HEADINGS: The paragraph headings in this instrument are for convenience
only, and do not limit or construe the contents of any paragraphs.
26. BINDING EFFECT: This Agreement shall be binding upon and inure to the benefit of the
heirs, successors, administrators and assigns of the parties hereto.
27. SIGNAGE: Lessee shall pay for any signage located on the wall next to the office entry door;
such signage shall be similar to other signage in the building. Lessor shall add Lessee’s name to the
building marquee. There shall be no exterior signage allowed.
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28. INDEMNIFICATION:
(a) Lessee’s Indemnity. Lessee indemnifies, defends, and holds Lessor harmless
from claims:
(i) for personal injury, death, or property damage; or
(ii) for incidents occurring in or about the Premises or Building; and for which
(iii) under either (i) or (ii) are caused by the negligence or willful misconduct of
Lessee, its agents, employees, or invitees.
When the claim is caused by the joint negligence or willful misconduct of Lessee and Lessor or Lessee
and a third party unrelated to Lessee, except Lessee’s agents, employees, or invitees, Lessee’s duty to
defend, indemnify, allocable share of the joint negligence or willful misconduct.
(b) Lessor’s Indemnity. Lessor indemnifies, defends, and holds Lessee harmless
from claims:
(i) for personal injury, death or property damage;
(ii) for incidents occurring in or about the Premises or Building, and;
(iii) caused by the negligence or willful misconduct of Lessor, its agents,
employees.
(c) Lessee’s sole remedy to satisfy the judgment shall be:
(i) Lessor’s interest in the Building and Land including the rental income and
proceeds from sale, and;
(ii) any insurance or condemnation proceeds received because of damage or
condemnation to, or of, the Building or Land that are available for use by
Lessor.
When the claim is caused by the joint negligence or willful misconduct of Lessor and Lessee or Lessor
and a third party unrelated to Lessor, except Lessor’s agents, employees, Lessor’s duty to defend,
indemnify, and hold Lessee harmless shall be in proportion to Lessor’s allocable share of the joint
negligence or willful misconduct.
(d) Release of Claims. Notwithstanding paragraphs (a), (b), and (c), the parties
release each other from any claims either party (Injured Party) has against the other. This
release is limited to the extent the claim is covered by the Injured Party’s insurance or the
insurance the Injured Party is required to carry under Section 11, whichever is greater.
29. SPECIAL PROVISIONS: The Lessee agrees not to discriminate in the fulfillment of this
Lease Agreement, or in any training classes or activities that take place on the premises, on the basis of
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race, color, religion, creed, sex, age, marital status, national origin, or actual or perceived sexual
orientation, gender identity or disability.
The Lessee agrees this requirement shall apply to the hiring and treatment of the Lessee’s employees,
contract instructors, and all persons taking classes.
DATE________, 20__ ____________________________________
Lessor/Manager
DATE________, 20__ ____________________________________
Lessee
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