Loading...
HomeMy WebLinkAboutOrdinance No. 1842 authorizing the City Manager to enter into a 2-year lease1 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: James Goehrung, Superintendent of Facility Services Chuck Winn, Assistant City Manager SUBJECT: Ordinance No. 1842 authorizing the City Manager to enter into a 2-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. The Commission provisionally adopted this Ordinance on September 17, 2012. This action will be for final adoption. 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. MEETING DATE: October 1, 2012 AGENDA ITEM TYPE: Consent RECOMMENDATION: Authorize the City Manager to enter into a 2-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. The lease agreement is for two (2) years but there is a provision in the lease that allows for and additional two year extensions for a total of up to four (4) years overall. The extensions are also in two year increments and must be upon mutual agreement of both parties. SUGGESTED MOTION: Authorize the City Manager to sign the 2-year lease agreement 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 $200.00. Enrollment in the classes is coordinated with the Personnel Department. The last time the lease came due I checked with Personnel to see if enough employees were taking classes that it seemed like we were getting a fair value towards the lease. It was affirmed that there was good attendance. 16 2 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 two (2) years but there is a provision in the lease that allows for and additional two year extensions for a total of up to four (4) years overall. The extensions are also in two 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." 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.” 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 1842 Lease Agreement Report compiled on: September 19, 2012 17 ORDINANCE 1842 Page 1 of 3 ORDINANCE NO. 1842 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A 2-YEAR SPACE LEASE WITH MSU-EXTENDED UNIVERSITY FOR THE LEASE OF AN OFFICE AND TRAINING CLASSROOM LOCATED IN THE ALDFRED M. STIFF PROFESSIONAL BUILDING AT 20 EAST OLIVE. WHEREAS, the City of Bozeman desires to lease office space and a training classroom located in the Alfred M. Stiff Professional Building at 20 East Olive; and WHEREAS, in exchange for the lease of the classroom and office space, the University will hold two spaces open for City of Bozeman employees for any non-credit class, with a class fee less than $150; and WHEREAS, MSU-Extended University has indicated their desire to renew said lease; 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 lands 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: Section 1 The City Commission hereby authorizes the City Manager to enter into the attached 2-year lease agreement (Exhibit A) with MSU-Extended University for lease of an office and 18 ORDINANCE 1842 Page 2 of 3 training room located in the Alfred M. Stiff Professional Building at 20 East Olive. The lease is incorporated herein by reference and made a part of this Ordinance. Final execution of the lease is dependent upon final adoption of this Ordinance 1842 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.” Section 6 19 ORDINANCE 1842 Page 3 of 3 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 17th of September, 2012. ____________________________________ SEAN A. BECKER Mayor ATTEST: _______________________________ STACY ULMEN, CMC City Clerk FINALLY ADOPTED AND APPROVED by the City Commission of the City of Bozeman, Montana on second reading at a regular session thereof held on the 1st day of October, 2012. The effective date of this ordinance is November, 1, 2012. _______________________________________ SEAN A. BECKER Mayor ATTEST: _______________________________ STACY ULMEN, CMC City Clerk APPROVED AS TO FORM: _______________________________________ GREG SULLIVAN City Attorney 20 1 LEASE AGREEMENT This lease agreement was entered into on October 15, 2012 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 twenty four (24) months, commencing on the 15th day of October, 2012, and terminating the 31st day of October, 2014, 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. At the end of this lease agreement, the agreement may be extended for another two years provided both parties can come to agreement on any changes in fees or terms. 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 shall 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 the 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. 21 2 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 leasable 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. 22 3 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 un-leasable 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. 23 4 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 24 5 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 Code Annotated. MSU will maintain insurance required for state agencies as provided under Title 2, Ch. 9, Montana Code 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 25 6 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 Superintendent, City of Bozeman, P.O. Box 1230, Bozeman, MT 59771-1230 To Lessee: MSU-Extended University Montana State University, P.O. Box 172200 Bozeman, MT 59717-2200. 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. 26 7 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 27 8 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 28