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HomeMy Public PortalAbout1990.12.31 Senior Center Lease Extension4 City of McCall OFFICE OF THE CLERK BOX ]065 MCCALL. IDAHO 83638 December 31, 1990 Del Catlin, Chairman Board of Directors McCall Senior Citizens Center McCall, Idaho 83638 Dear Mr. Catlin, On December 27, 1990 at their regular meeting, the McCall City Council, by motion properly made and seconded, on a unanimous vote, approved a five year extension of the lease as requested. The lease renewal term is for five years pursuant under the same terms and conditions set forth in that lease between the city and McCall Senior Citizens Incorporated, dated October 31, 1979. Section III of that lease permits the lessee to renew this lease for five year terms at the same rent. All other terms of that agreement remain unchanged. I regret the delay in extending this agreement. Sincerely, cc Rose Rebillet, Coordinator Law Offices of KILLEN, PITTENGER & KERRICK, P.A. 200 East Park St. P.O. Box A.O. McCall, Idaho 83638 William M. Killen Gregory C. Pittenger Carl B. Kerrick Mayor and Council City of McCall P. 0. Box 1065 McCall, Idaho 83638 December 21, 1990 Telephone: 634-7118 Area Code: 208 Re: Opinion letter regarding McCall Senior Citizen Lease Gentlemen: It is my understanding the the McCall Senior Citizens has expressly indicated a desire to renew their lease with the City on the same terms and conditions as the previous lease. The essential terms of that lease are for a period of ten years at $10.00 per year, payable in advance on the first of April each year, together with insurance coverage. I have reviewed the lease and as drawn it certainly entitles them to do so. The only qualification that I would make is that the original term of the lease is for ten years, while the renewal option as drawn provides for additional terms of five years on the same rent, namely $10.00 in advance, plus insurance coverage. Arguably the letter request of December 7th may be requesting a renewal for a full ten years. Since the construction of this lease agreement as drawn would permit the senior citizens to renew it indefinitely at five years each, it may be a distinction without a difference. As you are probably aware the lease also provides for 90 days written notice of termination by either party without cause, so that regardless of the perpetual renewal provisions the City is well positioned, should the circum- stances change, to reassert use and possession. The only other qualification I would make is their right to renew is conditioned upon having fully performed, I do not know, but presume, they have been paying their $10.00 Mayor and Council Page Two December 21, 1990 annually each year and causing the appropriate insurance to be reissued. Assuming that to be the case then they are well within their rights to request renewals, certainly at five year intervals, and permissably at ten year intervals if the council is so included to accommodate them. Best regards, KILLEN, PITTENGER ERRICK, P.A. William M. Killen WMK/ch cc: Bud Schmidt Bob Remaklus P.S. The original ten year term ended December, 1989 - so you are already into the first year of any renewal term.