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
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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 ***
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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: ________________________________
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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___
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Termination of Lease for City Land in East Gallatin Recreation Area
Page 4 of 4
EXHIBIT A:
LEASE
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