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HomeMy WebLinkAboutC6. Real Property Lease Agreement Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Mitch Overton, Parks, Recreation & Cemetery Department Director SUBJECT: Authorize the City Manager to sign Termination of Real Property Lease Agreement between City of Bozeman (City or Lessor) and State of Montana (Lessee) for 47.013 acres of City property, tract GL-1 as depicted on Gallatin County Certificate of Survey (COS) No. 1221. MEETING DATE: November 2, 2015 AGENDA ITEM TYPE: Consent   RECOMMENDATION: While the State of Montana Fish Wildlife and Parks (FWP) managed the above referenced property from 1985 to 1991, FWP ceased management and operation in 1991 when the City entered into a lease agreement to manage and operate FWP property (GL-2 on COS No. 1221). Since FWP does not and has no intention to manage, operate and maintain tract GL-1, we recommend authorizing the City Manager to sign the Termination of Real Property Agreement. SUGGESTED MOTION: I hereby authorize the City Manager to sign the Termination of Real Property Lease Agreement between the City of Bozeman and the State of Montana for 47.013 acres of City property, tract GL-1 as depicted on Gallatin County Certificate of Survey No. 1221. BACKGROUND: In 1985 FWP leased 47.013 acres (tract GL-1 on COS No. 1221) of City property located adjacent to their then newly acquired Glen Lake (tract GL-2 on COS No. 1221) property to be operated by FWP as the East Gallatin State Recreation Area. In 1991 it was determined the City of Bozeman and the East Gallatin Task Force was the best agency to manage, operate and maintain the Recreation Area. At that time, the City assumed all maintenance and operations responsibilities for the entire area, both GL-1 and GL-2. The lease for GL-1 could have been terminated at that time (1991) but was not. Now that it is very clear that FWP will not be operating GL-1, we recommend lease termination. ALTERNATIVES: As directed by Commission FISCAL EFFECTS: None Attachments: Lease Termination Agreement 1985 Lease w FWP COS No. 1221 Report compiled on: 10/26/15 40 Termination of Lease for City Land in East Gallatin Recreation Area Page 1 of 4 TERMINATION OF REAL PROPERTY LEASE AGREEMENT This TERMINATION OF LEASE AGREEMENT (“Termination”) is effective as of the date last signed below (“Effective Date”) between the City of Bozeman, a Montana municipal corporation with a mailing address of 121 N. Rouse Avenue, Bozeman MT 59771 (“Lessor”) and State of Montana by and through the Montana Department of Fish, Wildlife and Parks, with an address of 1420 E. Sixth Avenue, Helena MT 59620-0701 (“Lessee” and collectively with Lessor the “Parties”). WHEREAS, the Parties entered into the Lease Agreement attached as Exhibit A (“Lease”) whereby Lessee leased City-owned land in the East Gallatin Recreation Area more specifically described in the Lease, and WHEREAS, the Parties desire to terminate the Lease and release each other from certain liability thereunder as of the Effective Date. NOW, THEREFORE, in consideration of the above recitals and other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the Parties agree and covenant as follows: 1. Early Termination. The Lease shall terminate as of the Effective Date in the same manner and with the same effect as if that date had been originally fixed in the Lease for the expiration of the term, conditioned on the complete performance and full compliance by Lessee of the provisions of this Termination. 2. Survival of Lease Obligations. Except for any obligations pursuant to Paragraph 7 of the Lease stemming from events occurring prior to the Effective Date of this Termination, the Parties’ obligations under the Lease shall terminate as of the Effective Date of this Termination. 3. Voluntary Agreement. The parties have read this Termination, have had adequate opportunity to consult with independent counsel of their choosing, and by their signatures below freely and voluntarily enter into this Termination. 4. Entire Agreement; Amendment. This Termination sets forth the entire agreement between the Parties with respect to the subject matter of this Termination. This Termination may not be amended except by a writing duly authorized and executed by the party against whom enforcement is sought. 5. Binding Agreement. All provisions of this Termination shall be binding upon and inure to the benefit of the respective successors and assigns of Lessor and Lessee. 6. Governing Law. This Termination shall be governed and construed in accordance with the laws of the State of Montana. 7. Severability. If any portion of this Termination is held to be void or unenforceable, the balance thereof shall continue in effect. *** END OF DOCUMENT EXCEPT FOR SIGNATURES *** 41 Termination of Lease for City Land in East Gallatin Recreation Area Page 2 of 4 IN WITNESS WHEREOF, dated effective as last dated below: LESSOR: City of Bozeman By: Chris Kukulski Its: City Manager Date: ________________________________ LESSEE: State of Montana by and through the Montana Department of Fish, Wildlife and Parks By: Print name: _____________________________ Its: Date: ________________________________ 42 Termination of Lease for City Land in East Gallatin Recreation Area Page 3 of 4 ACKNOWLEDGMENTS STATE OF MONTANA ) : ss. County of Gallatin ) This instrument was acknowledged before me on _____________, 2015, by ________________ on behalf of the State of Montana by and through the Montana Department of Fish, Wildlife and Parks. _______________________________________ Printed Name: ______________________________ NOTARY PUBLIC for the State of Montana RESIDING AT _________________, Montana [Seal] My Commission Expires ____________, 20___ STATE OF MONTANA ) : ss. County of Gallatin ) This instrument was acknowledged before me on _____________, 2015, by Chris Kukulski, City Manager of the City of Bozeman on behalf of the City of Bozeman. Printed Name: ______________________________ NOTARY PUBLIC for the State of Montana RESIDING AT _________________, Montana [Seal] My Commission Expires ____________, 20___ 43 Termination of Lease for City Land in East Gallatin Recreation Area Page 4 of 4 EXHIBIT A: LEASE 44 45 46 47 48 49 50 51 52 53