HomeMy Public PortalAbout2008.11.06 FIRST AMENDMENT TO GROUND LEASE Lot #4- CompleteRecording Requested by and
When Recorded Return to:
Acting City Clerk
City of McCall
216 East Park Street
McCall, Idaho 83638
Instrument # 336924
VALLEY COUNTY, CASCADE, IDAHO
11-26-2008 09:10:55 No. of Pages: 4
Recorded for : CITY OF MCCALL
ARCHIE N. BANBURY Fee: .00
Ex-Officio Recorder De
Index to: LEASE
FIRST AMENDMENT TO GROUND LEASE
THIS FIRST AMENDMENT TO THE GROUND LEASE ("Amendment") is entered
into this 6 day of November, 2008, by and between the CITY OF McCALL, IDAHO, a
municipal corporation organized and existing under the laws of Idaho ("Lessor"), and
NEIGHBORHOOD HOUSING SERVICES, INC., a corporation organized and existing under
the laws of Idaho ("Lessee").
WHEREAS, the parties previously entered into an Agreement on the 28t day of
September, 2006 (the "Agreement") recorded in Valley County, Idaho May 23, 2007 as
Instrument No. 321617, wherein Lessee is leasing from Lessor certain premises with the
appurtenances, situated in McCall, Valley County, Idaho.
WHEREAS, Lessor desires to add additional language to Section Three, Rent of the
Ground Lease.
WHEREAS, Section Three, Rent of the Ground Lease provides as follows:
"Subject to adjustment as provided below, the total rent for the initial term shall be $1.00
per year, which Lessee shall pay to Lessor, without deduction or offset, at the place or
places as may be designated from time to time by Lessor. In addition to the foregoing, as
additional rent which is due and payable upon possession of the single family dwelling to
be constructed on the premises, Lessee shall pay to Lessor all sums the Lessor has
advanced for fees, site preparation, and construction of any utility extensions or other
work done to prepare the leased premises for construction of the community/workforce
dwelling that will be located on the premises."
NOW, THEREFORE, pursuant to SECTION THREE, RENT, of the Ground Lease,
Lessor and Lessee hereby amend the Ground Lease as follows, to -wit:
1. Section Three, Rent is hereby revoked and replaced with the following:
SECTION THREE, RENT
Subject to adjustment as provided below, the total rent for the initial term shall be $1.00
per year, which Lessee shall pay to Lessor, without deduction or offset, at the place or
places as may be designated from time to time by Lessor. Lessee agrees, for itself, its
First Amendment to Ground Lease — Page 1
successors and assigns, that upon assignment of the Lease to a subsequent purchaser of
the improvement(s) constructed on the leased premises, Lessee will pay additional rent
equal to ten percent (10%) of the equity the Assignee had in the improvement(s), or Five
Thousand Dollars ($5,000.00), whichever is less. For the purpose of computing the
amount of additional rent due, "equity" is defined as the difference between the purchase
price measured at the date of closing the purchase of the improvement(s) by the
Assignee, and the gross sales price to a new Assignee after deduction of real estate
commissions, title insurance payable by Assignee, and Assignee's portion of the escrow
agent's closing fee. This additional rent shall be paid each time an assignment of this
lease is made.
In the event that the leasehold improvements and the leasehold are not used for
community/workforce housing (as defined in the VARHA Covenants recorded against the
premises) as contemplated by this lease, or should the recorded VARHA Covenants which limit
use of the premises to community/workforce housing be eliminated or no longer in force, then in
that event, the holder of the leasehold interest shall pay, as additional rent, an annual rent,
payable in monthly installments, equal to two times the fair market value lease rate for ground
leases as determined for ground leases administered by the Idaho Department of Lands for
residential ground leases adjacent to Big Payette Lake, which rent shall be adjusted annually.
This rent shall be based on the square footage of the area of the leased premises.
2. Except as expressly modified by the terms of this First Amendment, the Ground
Lease shall remain fully in force and binding on the parties according to its terms.
3. After its execution, this First Amendment shall be recorded in the office of the
Valley County Recorder, at the expense of Lessor. Each commitment and covenant contained in
this First Amendment shall constitute a burden on, shall be appurtenant to, and shall run with the
properties. This First Amendment shall be binding on the City of McCall and Neighborhood
Housing Services, Inc. and their respective heirs, administrators, executors, agents, legal
representatives, successors and assigns.
IN WITNESS WHEREOF, parties have hereunto caused this First Amendment to
be executed, effective on the day and year first above written.
NEIGHBORHOOD HOUSING CITY OF MCCALL
SERVICES, INC.
BY: BY:
Connie Hogland, Chief Executive
Officer
First Amendment to Ground Lease — Page 2
Bert Kulesza, Mayor
ATTEST:
BY: ?","e" (kt 62�
Brenna Chaloupka, Acting City Clerk
STATE OF IDAHO,
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County of _TAA°'A , )
On this ! day of Move„),60- , 2008, before me, a Notary Public in and
for said State, personally appeared Connie Hogland known or identified to me to be the
Chief Executive Officer of Neighborhood Housing Services, Inc., an Idaho non-profit
corporation that executed the instrument or the person that executed the instrument on behalf
of said corporation and acknowledged to me that such corporation executed the same.
0j14444.NESS WHEREOF, I have hereunto set my hand and affixed my official seal,
th$rd 1/4 his certificate first above written.
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STATE OF IDAHO,
County of Valley,
Notary ' - or Idaho
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On this I day of, 2008, before me, a Notary Public in and
for said State, personally appeared Bert Kulesza and Brenna Chaloupka, known or identified
to me to be the Mayor and Acting City Clerk of McCall, Idaho, respectively, the Idaho
municipal corporation that executed the instrument or the person that executed the
instrument on behalf of said municipal corporation, and the person who attested the Mayor's
signature to the instrument, and acknowledged to me that such municipal corporation
executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal,
the day and year in this certificate first above written.
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First Amendment to Ground Lease — Page 3
EXHIBIT "A"
LEGAL DESCRIPTION
OF
PROPERTY
Lot 4, Block 3, Greystone Village No. 3, 1543 McCall Avenue, McCall, Valley County, Idaho,
according to the official plat thereof, recorded July 31, 2006, as Instrument No. 311462, records
of Valley County, Idaho.
First Amendment to Ground Lease — Page 4