HomeMy WebLinkAbout01- U2 LC.; University Square - License for Use of Real Property
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LICENSE FOR USE OF REAL PROPERTY
This license, made and entered into this 25th day of July, 2001, by and between the City
of Bozeman, hereinafter City; whose mailing address is P.O. Box 1230, Bozeman, Montana
59715 and is located at 411 E. Main, Bozeman, Montana 59771 and U2, L.C., hereinafter U2,
whose mailing address is 2749 E. Parley's Way, Suite 310, Salt Lake City, Utah 84109;
RECITALS:
WHEREAS, U2 is the owner of certain real property located with the city limits of
Bozeman, Montana known as University Square; and
WHEREAS, in March 1995, the City of Bozeman purchased a portion of that real
property from a previous owner upon which is located a sign for the University Square shopping
center, hereinafter Shopping Center; and
WHEREAS, as part of that purchase, the City of Bozeman paid the previous owner
$10,000 to remove the sign from the property; and
WHEREAS, the previous owner failed to do so; and
WHEREAS, the sign currently in place on the City's property is considered a non-
conforming freestanding sign in violation of the City's zone code; and
WHEREAS, U2 now wishes to leave the sign in place upon the City's property; and
WHEREAS, the City is willing to allow the sign to remain on the City's property so long
as U2 agrees to undertake certain liabilities and responsibilities incident to its use of the property;
NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:
1. U2 will be allowed the use of the two islands located the comer of West Main Street and
23rd A venue, Bozeman, Montana, more particularly described in Exhibit "A" attached
hereto and incorporated by reference. U2 will be allowed to leave the sign currently
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located on lot "AI" as described in Exhibit "A." The sign will be allowed to remain as is
and U2 will be allowed to change the sign only to amend occupant's names and to
perform necessary maintenance and restoration on the existing signage. Should the sign
become valued at 50% or less of its value as it exists the date of this agreement, then in
that event, U2 agrees to replace the sign with one which conforms with the Bozeman Sign
Code currently codified in Title 18 of the City of Bozeman Code.
2. In exchange for the use of the property and the sign, U2 shall pay to the City $13,984.46
which is the amount of money originally paid for the removal of the sign plus interest
until January 1,2001. The payment shall be made within thirty (30) days of the full
execution date of this License.
3. U2 further agrees to have a landscape plan designed by a qualified Montana nurseryman
or landscape architect. Said plan will be submitted to the Department of Public Service
not later than August 15,2001. Upon approval, alllandscaping and irrigation systems
must be completed not later than May 1, 2002. U2 will landscape, maintain and irrigate
both islands during the life of the License, and agrees to maintain the landscaping in an
appropriate manner to preserve the integrity of the approved plan.
4. The parties further agree that the Director of Public Service will review U2's compliance
with the License on an annual basis. Such review will take place at an appropriate time
of year and under appropriate weather conditions to afford the landscaping to be in a
reasonable condition. The Director's review may include the adequacy oflandscaping,
value and/or changes in the sign or any other condition contained herein. Should the
Director be unsatisfied with U2 conduct under this, the Director may require U2' s
compliance. Failure to do so will be considered a material breach of this agreement and
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the City will have all options set forth in paragraph 9 of this agreement.
5. The parties mutually agree that the City shall pay the Street and Tree Assessments due
through May 30, 2001. U2 shall be responsible for the payment of all Street and Tree
Assessments accrued and owing after that date through the termination of this License.
6. U2 will not assign or transfer this License or sublet all or any portion of the site without
the prior written consent of the City, provided such consent shall not be unreasonably
withheld. Notwithstanding the foregoing, in the event U2 or any subsequent owner
transfers, sells, or conveys ownership of the Shopping Center, the City acknowledges it
will consent to the transfer of this License to all subsequent owners of the Shopping
Center, so long as this License is still in effect.
7. U2 will purchase and maintain, at its expense, liability insurance for the protection of the
City against allliability,judgments, costs, damages and expenses which may accrue
against, be charged to, or recovered from U2 by reason of damage to the property of,
injury to, or death of any person or persons on account of any matter or thing which may
occur through U2' s use of, or arising or occurring in or around the foregoing described
premises to either persons or property as a result of U2' s use. Said insurance will be in
the amount of Five Hundred Thousand ($500,000.00) Dollars per person, and One
Million ($1, 000,000.00) Dollars per occurrence for bodily injury and Five Hundred
Thousand ($500,000.00) Dollars per occurrence for property damage. Within thirty (30)
days of the date of this License, U2 will secure and furnish to the City a certificate of
insurance naming the City as an additional insured, to include thirty (30) days notice of
cancellation or non-renewal of said policy.
8. U2 will exercise this privilege at its own risk and agrees to indemnify, defend, and hold
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harmless the City, its officers, directors, agents, and employees from any and all liability ,
loss, or damage, including reasonable attorney's fees, the City may suffer as a result of
any claim, demand, cost or judgment against it, arising out of or in anyway connected to
the occupation or use of the property by U2, its members, employees, guests or invitees.
Said attorney's fees may include fees and salary paid by the City to the City Attorney or
other in-house counsel.
9. The parties acknowledge that time is of the essence and waiver of one deadline shall not be
determined to be a waiver of all. In the event either party should default under the terms of
this License, the nondefaulting party shall give the defaulting party a notice of said default,
in writing, and directed to the address set forth above. The defaulting party shall have thirty
(30) days from receipt of the notice in which to cure said default. If said default is not cured,
then the nondefaulting party shall be entitled to proceed to cure said default, to seek
damages, terminate the agreement or to pursue other remedies available at law or in equity
including but not limited to the removal of the sign. The defaulting party will be
responsible to the non-defaulting party for any costs incurred in the curing of any default
including but not limited to the cost of removing the sign. Further, in the event the City
chooses to remove the sign upon U2's default or termination of this agreement, the City
will not be responsible or liable for any costs incurred by U2 for removal or replacement
of said sign.
10. The parties hereby agree that, unless terminated as provided herein, this License is valid
for a period not to exceed ten (10) years from the date the License was first executed
unless extended in writing upon mutual agreement of both parties. So long as U2 is not
in default under this License, the City hereby agrees to i) negotiate in good faith with U2
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or its successor for an extension of the term set forth herein; and/or ii) grant to U2 or its
successor a first right of refusal regarding the continuance of said License.
11. This License represents the full Wlderstanding and agreement of the parties. Any
amendment or modification of this agreement or any provision herein shall be made in
writing or executed in the same manner as the original document and shall after execution
become part of this agreement.
IN WITNESS, WHEREOF, I have hereWlto set my hand this.ll.. day of Auqust, 2001.
U2 L.C., a Utah Limited Liability Company
By WOODBURY CORPORATION, a Utah corporation
Its Man
By:
By WESTERN STATES MANAGEM NT CORP., a Utah corporation
Its Manager
By:
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City of Bozeman
Clark Johnson, City Manager
ATTEST:
~.:t~
Clerk of the Commission
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