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HomeMy WebLinkAbout81- Reach Agreement and Lease A G R E E M E N I AND L E A S E THIS AGREEMENT IS MADE THIS 7th DAY OF DECEMBER, 1981, by and between the CITY OF BOZEMAN, a municipal corporation, hereafter called "City," and REACH, INCORPORATED, a non- profit corporation, hereinafter called "Reach"'� W I T N E S S E T H. 1. That the City has obtained a Block Grant from HUD for funds to purchase real property for organizations deemed by the City to provide social services for the Bozeman area. The City has designated Reach as one of those organizations and agrees to work with Reach in providing Reach real property for housing facilities for developmentally disabled adults. 2. The City purchased in its own name real property located in Lots 21 and 22 of Block 3 of Beall's Second Addition to Bozeman, Montana. 3. The City and Reach agree that the property shall be held by the City for a period of three (3) years from the date of this Agreement. During the three (3) year period of time, Reach has a right to lease the property from the City without any charge so that it can use the property for a housing facility for developmentally disabled adults , with one unit designated for occupancy by required staff. Reach agrees that it shall use the property only for that use. Any other use of the property by Reach shall be considered a breach of this Agreement. Reach agrees that during the lease period all improvements or alterations to the property described in 2. above shall have prior approval from the City. As Reach has leased the property from the City, it shall be solely responsible for the upkeep , maintenance and repairs of the property. Reach agrees that it shall keep the property insured during the lease period for the full replacement value of the real property. Reach shall be solely responsible from the date it occupies the property for all utilities and city and county taxes that come due on the property during the lease period, 4. The City and Reach agree that the City shall have the right upon three (3) days notice to inspect the property to determine if Reach is properly maintaining the property and is using it for the purposes that is intended to be used, The City shall also have the right to review and audit the financial records of Reach on an annual basis to determine whether Reach is financially secure, 5 . The City and Reach agree that at the end of the three (3) year period, the City shall determine if Reach is financially secure to maintain the operation of the housing facility for developmentally disabled adults. The City shall also determine if the property has been used solely for the original purpose of the lease, The City shall also have the right to determine whether the housing facility is being properly operated consistent with Reach's proposal, Exhibit "A" to this Agreement, If the City determines that the real property's use has been solely for a housing facility for developmentally disabled adults and that Reach is financially secure to continue the operation of the facility, then the city shall deed the property over to Reach on the following conditions. A. That Reach shall use the property solely for the purpose of providing a housing facility for developmentally disabled adults as outlined in their Grant proposal to the City Commission, B. That Reach shall maintain full replacement cost insurance on the property for as long as it occupies the property; C. That Reach shall not take any action to take the property off the tax rolls of Gallatin County so long as they occupy the real property; D. That Reach shall not transfer, mortgage, sell or otherwise encumber the property without the consent of the City. PAGE 2. E. Reach agrees that if the property is not used for the purpose of this Agreement, then the real property shall revert back to the City, 6. Reach agrees that during the lease period it shall maintain a liability insurance policy in the amount of THREE HUNDRED THOUSAND AND N01100 DOLLARS ($3Q0,000.00) per occasion of bodily injury, ONE HUNDRED THOUSAND AND N01100 DOLLARS ($100,000.00) per person, ONE HUNDRED THOUSAND AND NO/100 DOLLARS ($100,000.00) property damage with the City of Bozeman as additional named insured, to cover the operation of the housing facility to indemnify the City from any claims . that are made against the City as a result of this lease, 7. Reach agrees that it shall comply with all City, County, and State ordinances, laws and regulations in the operation of this shelter facility. 8. Reach also agrees that it shall cooperate with the City on any City audits , review, or inspections done by the City, County, State, or Federal agency. 9. The City and Reach agree that the structures were occupied by Reach on November 24, 1981 and that from that day forth, this Agreement takes force. Further, HUD Section 8 Rent Subsidies received by the clients of Reach, sent directly to Reach as agreed by the City of Bozeman, shall be used for the maintenance and operation of the project and are the sole responsibility of the sponsoring agency, Reach, Incorporated. Reach agrees that the City shall with one week's notice, which shall contain the specified areas of review, have the right to inspect Reach's books as they pertain to this specific project of providing a semi-independent living experience as outlined in the proposal in Exhibit "A" to insure that the rent subsidies are being spent properly, as is necessary to comply with audit requests from any govern- mental body. In addition, Reach will provide and submit to the City a detailed budget for each year, detailing funding sources, line items , and expenses . DATED THIS 7th DAY OF DECEMBER, 1981 REACH: CITY: REACH, INCORPORATED CITY OF BOZEMAN B B Y,r� W __/e/2,,4� �J