HomeMy Public PortalAbout2009.04.06 Assignment of Lease Waldsmith Lot 7Instrument # 340329
VALLEY COUNTY, CASCADE, IDAHO
4-6-2009 04:45:04 No. of Pages: 33
Recorded for : AMERITITLE
ARCHIE N. BANBURY
Ex-Officio Recorder Deputy
Index to: LEASE
ASSIGNMENT OF LEASE
Fee: 99.00
TC.I VODZ
Parties: NEIGHBORHOOD HOUSING SERVICES, INC., a corporation organized
and existing under the laws of Idaho, Assignor
RAYMOND A. WALDSMITH, Assignee
CITY OF MCCALL, a municipal corporation organized and existing under
the laws of Idaho, Landlord
Agreement, made effective as of the 26 day of March, 2009, by and
between the Neighborhood Housing Services, Inc, a corporation organized and
existing under the laws of Idaho, Assignor, of 1401 Shoreline Drive, Boise, Ada
County, State of Idaho, herein referred to as "Neighborhood," and Raymond A.
Waldsmith, Assignee, of 2096 E. Celia Court Eagle, Ada County, State of Idaho,
herein referred to as "Waldsmith."
ARTICLE I. DEFINITIONS
1.1 "Neighborhood": Means and refers to the Neighborhood Housing Services, Inc., a
corporation organized and existing under the laws of Idaho, Assignor, party to this
Agreement as assignor.
1.2 "City": Means and refers to the City of McCall, Idaho, a municipal corporation
organized and existing under the laws of Idaho, of 216 E. Park St., McCall, Valley
County, State of Idaho.
1.3 "Lease": Means and refers to that certain Lease Agreement by and between the
City of McCall, Idaho, a municipal corporation organized and existing under the laws of
Idaho, of 216 E. Park St., McCall, Valley County, State of Idaho as Lessor and
Neighborhood Housing Services, Inc., a corporation organized and existing under the
laws of Idaho, Lessee, a true and correct copy of which is attached hereto marked Exhibit
A and by this reference incorporated herein.
1.4 "Premises": Means and refers to those certain premises with the appurtenances,
situated in, McCall, Valley County, Idaho, and more particularly described in the exhibit
attached to the Ground Lease as Exhibit 1, which is the subject of this Lease.
1.5 "Waldsmith": Means and refers to Raymond A. Waldsmith, party to this
Agreement as assignee.
Assignment of Lease Page 1 of 6
Revised 11/05/08
ARTICLE II. RECITALS
2.1 "Neighborhood" has entered into the Lease for the purpose of conducting in and
on such Premises community/workforce housing and for no other purpose, from the date
of the Lease until on or about; and
2.2 "Neighborhood" is willing to sell one of the community housing homes to
"Waldsmith"; and
2.3 The Premises suit the needs of "Waldsmith"; and
2.4 "Neighborhood" is desirous of assigning its rights under the Lease to
"Waldsmith" upon the condition that "Waldsmith" performs all the terms and conditions
of the Lease in a timely manner and "City" consents to the assignment, to all of which
"Waldsmith" is agreeable; and
2.5 The Lease provides that the consent of "City" is required prior to any assignment
of the "Neighborhood's" interest in and to the Lease.
NOW THEREFORE, in consideration of the foregoing, the parties covenant and agree as
follows:
ARTICLE III. COVENANTS
3.1 For the consideration set forth in Article II herein, and other good and valuable
consideration, the receipt of which is acknowledged, "Neighborhood" assigns to
"Waldsmith" all of "Neighborhood's" interest in the Lease for "Waldsmith" to purchase
one of the community housing homes located at 1551 McCall Avenue, McCall, Valley
County, ID 83638, dated the 28th day of September, 2006, which Lease was made
between "Neighborhood", as lessee, and "City", as lessor, and in the rent paid by
"Neighborhood" as lessee under the Lease, subject to all the terms, conditions, covenants,
and agreements contained in such Lease and the First Amendment to Lease true and
correct copies of which are attached hereto marked Exhibits A and B.
3.2 "Waldsmith" accepts the assignment as set forth in section 3.1 herein as of the
effective date of this Agreement and agrees to perform all the terms, conditions,
covenants, and agreements of the Lease that are to be performed by the lessee.
ARTICLE IV. GENERAL PROVISIONS
4.1 Notices: A11 notices required to be given to each of the parties hereto under the
terms of this Agreement shall be given by depositing a copy of such notice in the United
States mail, postage prepaid, and registered or certified, return receipt requested, to the
respective parties hereto at the following addresses:
Assignment of Lease Page 2 of 6
Revised 11/05/08
Neighborhood Housing Services, Inc.
1401 Shoreline Drive
Boise, ID 83707
Raymond A. Waldsmith
2096 E. CELIA COURT
Eagle, Idaho 83616
or to such other address as may be designated in writing delivered to the other party. All
notices given by certified mail shall be deemed completed as of the date of mailing
except as otherwise expressly provided herein.
4.2 Non -Waiver: The failure of a party hereto to insist upon strict performance of
observance of this Agreement shall not be a waiver of any breach of any terms or
conditions of this agreement by any other party.
4.3 Conflicts of Agreement with Applicable Law: In the event any provision or
section of this Agreement conflicts with applicable law, or is otherwise held to be
unenforceable, the remaining provisions shall nevertheless be enforceable and carried
into effect.
4.4 Attorneys' Fees: In the event any litigation arising under, or as a result of, this
Agreement or arising from any of the acts to be performed hereunder or the alleged
breach of this Agreement, except for an agreed declaratory judgment action sought to
clarify the responsibility and/or authority of the parties hereunder, the prevailing party
shall recover its costs and reasonable attorneys' fees.
4.5 Idaho Law: This Agreement shall be governed and interpreted by the laws of the
State of Idaho.
4.6 No Assignment: No party may assign this Agreement or any interest therein
without the consent of both parties and the consent of "City".
4.7 Binding Effect: The provisions and stipulations of this Agreement shall inure to
the benefit of and shall be binding on the heirs, legal representatives, successors in
interest, and assigns of the parties hereto.
4.8 Severability: In the event any of the provisions of this Agreement shall be
deemed illegal or unenforceable, such determination shall not operate to invalidate any of
the remaining provisions of this Agreement.
4.9 Headings: The bolded paragraph headings are for convenience only and are not a
part of this Agreement and shall not be used in interpreting or construing this Agreement.
Assignment of Lease Page 3 of 6
Revised 11/05/08
In witness whereof, each party to this agreement has caused it to be executed at
on the date indicated below.
NEIGHBORHOOD HOUSING SERVICES, INC.
Date: 3/ % 0
Attest:
Secretary
By:
William dson, Chief Financial Officer
NAME
Date: By:
Raymond A. Waldsmith
CONSENT OF CITY OF McCALL:
The City of McCall consents to the assignment of Lease subject to the terms and
conditions of the above contained Assignment of Lease.
Date:
Attest:
BessieJo Wagn-r, ity Clerk
Assignment of Lease
Revised 11/05/08
CITY OF McCALL
By:
Bert Kulesza, Mayor
Page 4 of 6
T
STATE OF IDAHO, )
: ss:
County of Ada, )
On this 2-P day of i "U V) , 2OCK a Notary Public in and for said State,
personally appeared William Judson+mid , known or identified
to me to be the Chief Financial Officer and Secretary of Neighborhood Housing Services, Inc.,
an Idaho non-profit corporation that executed the instrument or the persons that executed the
instrument on behalf of said corporation and acknowledged to me that such 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.
STATE OF IDAHO, )
: ss:
County of Valley, )
NlQ,lyn5La-J. LL
Notary Public for Idaho ��`) ��
My Commission Expires:
On this day of , 2009 a Notary Public in and for said State,
personally appeared Raymond A. Waldsmith, known or identified to me to be the person that
executed the instrument and acknowledged to me that he 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.
(SEAL)
Notary Public for Idaho
My Commission Expires:
Assignment of Lease Page 5 of 6
Revised 11/05/08
In witness whereof, each party to this agreement has caused it to be executed at
, on the date indicated below.
NEIGHBORHOOD HOUSING SERVICES, INC.
Date: 3, 4V{:y By:
Attest:
Secretary
Date:
a9
CONSENT OF CITY OF McCALL:
NAME
By:
William Jddson, Chief Financial Officer
1
Ray' nd A. Waldsmith
r
The City of McCall consents to the assignment of Lease subject to the terns and
conditions of the above contained Assignment of Lease.
Date:
Attest:
BessieJo Wagn ity Clerk
Assignment of Lease
Revised 11/05/08
CITY OF McCALL
By:
Bert Kulesza, Mayor
Page 4 of 6
STATE OF IDAHO, )
: ss:
County of Ada, )
On this 20 day of Mairei ) , 200X a Notary Public in and for said State,
personally appeared William JudsonaHifi , known or identified
to me to be the Chief Financial Officer and Secretary of Neighborhood Housing Services, Inc.,
an Idaho non-profit corporation that executed the instrument or the persons that executed the
instrument on behalf of said corporation and acknowledged to me that such 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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Notary Public for Idaho =`,, �`�
My Commission Expires:
STATE OF IDAHO, )
Ada : Ss:
County of Valley, )
On this ilr0 day of i 12L , 2009 a Notary Public in and for said State,
personally appeared Raymond A. Waldsmith, known or identified to me to be the person that
executed the instrument and acknowledged to me that he executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal, the
�slArontider in this certificate first above written.
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Assignment of Lease
Revised 11/05/08
Residing at:
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Commission Expires:
January 24, 2012
Page 5 of 6
STATE OF IDAHO, )
: ss:
County of Valley,
%
On this (22 7 day of l ✓1P/t , 200A, a Notary Public in and for said State,
personally appeared Bert Kulesza and BessieJo Wagner, known or identified to me to be the
Mayor and City Clerk of the City of McCall, respectively, the Idaho municipal corporation that
executed the instrument or the persons that executed the instrument on behalf of said municipal
corporation, and the persons who attested the Mayor's and Acting City Clerk's signatures 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.
(SEAL)
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Assignment of Lease Page 6 of 6
Revised 11/05/08
-60/1 Yvl.e cit
iment # 316923
f COUNTY, CASCADE, IDAHO
-28 04:35:47 No. of Pages: 19
nd for : CITY OF MCCALL
G. cords Deputy AC Fee: 0.00
E Recorder G\
.EASE
Instrument # 314103/
VALLEY COUNTY, CASCAD , IDAHO
2006-10-06 09: 28 No. of Pages: 19
Recorded for : CITY MCCALL
LELAND G. HE (RICH Fee: 0.00
Ex-Officio Rp&rder Deputy
InAt. fn, I CeCC
GROUND LEASE
This lease agreement is made September 28, 2006 between the City of McCall, Idaho a
municipal corporation organized and existing under the laws of Idaho, having its principal office
at 216 E. Park St., McCall, Idaho 83638 ("Lessor"), and Neighborhood Housing Services, Inc., a
corporation organized and existing under the laws of Idaho, having its principal office at 1401
Shoreline Drive, Boise, Idaho 83707 ("Lessee").
Whereas, rising land prices and construction costs have made housing unaffordable to many
people that work in essential public employment such as public safety officers and other public
employees who safeguard the health, safety and welfare of McCall and the surrounding
communities: and
Whereas, the lack of affordable housing has made it difficult, if not impossible, for public
agencies to hire and retain such public employees as are needed to provide essential public
services; and
Whereas, the same housing costs affect the ability of the private sector to hire and retain
employees in the retail and construction trades; which adversely affects small and local
businesses; and
Whereas, the inability to find affordable housing has caused a shortage of health care
workers which in turn has resulted in a reduction in health care services in McCall, including at
least one assisted living facility which had to close resulting in moving long time McCall
residents who can no longer live independently to a facility in Gem County; and
Whereas, the City of McCall has established a community/workforce housing policy and has
adopted ordinances to put such policy into effect; and
Whereas, leasing land to Lessee will facilitate the construction of affordable housing which
will begin to address the shortage of affordable housing in McCall and will improve the health,
safety, and welfare of the citizens and visitors to McCall.
Instrument # 321619
NOW, Therefore, VALLEY COUNTY, CASCADE, IDAHO
2007-05-23 04:00:03 No. of Pages: 21
Recorded for : CITY OF MCCALL
A
The parties agree as follows: ARCHIE N. BANBURY
Ex-Officio Recorder Deputy
Index to: EASEMENT VFee: 0.00
SECTION ONE. DEMISE, DESCRIPTION, AND USE OF PREMISES
Lessor leases to Lessee and Lessee leases from Lessor, for the purpose of conducting in and
on such premises community/workforce housing and for no other purpose, those certain premises
with the appurtenances, situated in, McCall, Valley County, Idaho, and more particularly
described in the exhibit attached to and made a part of this lease agreement as Exhibit 1 As used
Ground Lease - 1
in this lease agreement, the term "premises" refers to the real property above described and to
any improvements located on the property from time to time during the term of this lease
agreement.
SECTION TWO. TERM
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The initial term of this lease hall be for fifty50) F�.
years, commencing on the date hereof, and
ending on September 30, As used in this lease agreement, the expression "term of this
lease agreement refers to the initial term and to any renewal of this lease agreement as provided
below.
SECTION THREE. RENT
4,�c.
Subject to adjustment as provided below, the total rent for the initial term shall be $ , c 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.
SECTION FOUR. WARRANTIES OF TITLE AND QUIET POSSESSION
Lessor covenants that Lessor is seized of the demised premises in fee simple and has full
right to make and enter into this lease and that Lessee shall have quiet and peaceable possession
of the demised premises during the term of this lease agreement.
SECTION FIVE. DELIVERY OF POSSESSION
If Lessor, for any reason whatever, cannot deliver possession of the demised premises to
Lessee at the commencement of the lease term, as specified above, this lease agreement shall not
be void or voidable, nor shall Lessor be liable to Lessee for any loss or damage resulting from
such nondelivery; but in that event, there shall be a proportionate reduction of rent covering the
period between the commencement of the lease term and the time when Lessor can deliver
possession.
SECTION SIX. USES PROHIBITED
Lessee shall not use, or permit the demised premises, or any part of the demised premises, to
be used, for any purpose or purposes other than the purpose or purposes for which the demised
premises are leased under this lease agreement. No use shall be made or permitted to be made of
the demised premises, or acts done, which will cause a cancellation of any insurance policy
covering the building located on the premises, or any part of such building, nor shall Lessee sell,
or permit to be kept, used, or sold, in or about the demised premises, any article that may be
prohibited by the standard form of fire insurance policies. Lessee shall, at its sole cost, comply
with all requirements, pertaining to the demised premises, of any insurance organization or
Ground Lease - 2
company, necessary for the maintenance of insurance, as provided in this lease agreement,
covering any building and appurtenances at any time located on the demised premises. Further,
Lessee shall comply with all deed restrictions on the premises which require use and occupancy
of the premises for community/workforce housing.
SECTION SEVEN. WASTE AND NUISANCE PROHIBITED
During the term of this lease, Lessee shall comply with all applicable laws affecting the
demised premises, the breach of which might result in any penalty on Lessor or forfeiture of
Lessor's title to the demised premises. Lessee shall not commit, or suffer to be committed, any
waste on the demised premises, or any nuisance. Lessee shall maintain all landscaping including
removal of noxious weeds, mowing grass, trimming trees, irrigating plants as necessary, all to
maintain the premises to keep the same clean, free from debris, and generally in the same
condition as other properties in McCall.
SECTION EIGHT. ABANDONMENT OF PREMISES
Lessee shall not vacate or abandon the premises at any time during the term of this lease
agreement. If Lessee abandons, vacates, or surrenders the demised premises, or is dispossessed
by process of law, or otherwise, any personal property belonging to Lessee and left on the
premises shall be deemed to be abandoned, at the option of Lessor, except such property as may
be encumbered to Lessor.
SECTION NINE. LESSOR'S RIGHT OF ENTRY
Lessee shall permit Lessor and the agents and employees of Lessor to enter into and on the
demised premises at all reasonable times for the purpose of inspecting the premises, or for the
purpose of posting notices of nonresponsibility for alterations, additions, or repairs, without any
rebate of rent and without any liability to Lessee for any loss of occupation or quiet enjoyment of
the premises occasioned by the entry. Lessee shall permit Lessor and its agents and employees,
at any time within the last year prior to the expiration of this lease agreement, to place on the
demised premises any usual or ordinary "To Let" or "To Lease" signs and exhibit the premises to
prospective tenants at reasonable hours.
SECTION TEN. ENCUMBRANCE OF LESSEE'S LEASEHOLD INTEREST
A. Lessee may encumber by mortgage or deed of trust, or other proper instrument, its
leasehold interest and estate in the demised premises, together with all buildings and
improvements placed by Lessee on the premises, as security for any indebtedness of Lessee. The
execution of any mortgage, or deed of trust, or other instrument, or the foreclosure of any
mortgage, or deed of trust, or other instrument, or any sale, either by judicial proceedings or by
virtue of any power reserved in a mortgage or deed of trust, or conveyance by Lessee to the
holder of the indebtedness, or the exercising of any right, power, or privilege reserved in any
mortgage or deed of trust, shall not be held as a violation of any of the terms or conditions of this
lease agreement, or as an assumption by the holder of the indebtedness personally of the
Ground Lease - 3
obligations of this lease agreement. No encumbrance, foreclosure, conveyance, or exercise of
right shall relieve Lessee from its liability under this lease agreement.
B. If Lessee shall encumber its leasehold interest and estate in the demised premises and if
Lessee or the holder of the indebtedness secured by the encumbrance shall give notice to Lessor
of the existence of the encumbrance and the address of the holder, then Lessor will mail or
deliver to the holder, at such address, a duplicate copy of all notices in writing which Lessor
may, from time to time, give to or serve on Lessee under and pursuant to the terms and
provisions of this lease agreement. The copies shall be mailed or delivered to the holder at, or as
near as possible to, the same time the notices are given to or served on Lessee. The holder may,
at its option, at any time before the rights of Lessee shall be terminated as provided in this lease
agreement, pay any of the rents due under this lease agreement, or pay any taxes and
assessments, or do any other act or thing required of Lessee by the terms of this lease agreement,
or do any act or thing that may be necessary and proper to be done in the observance of the
covenants and conditions of this lease agreement or to prevent the termination of this lease
agreement. All payments so made and all things so done and performed by the holder shall be as
effective to prevent a foreclosure of the rights of Lessee as if done and performed by Lessee.
C. Any holder of an encumbrance of Lessee's leasehold interest shall have the right to bid at
a foreclosure sale or to accept voluntary conveyance of the Lessee's interest in lieu of
foreclosure. Any purchaser at such foreclosure sale, or transferee of Lessee's interest voluntarily
surrendered to the holder of an encumbrance, shall take such leasehold interest subject to the
terms herein.
SECTION ELEVEN. SUBLETTING AND ASSIGNMENT
Lessee may sublet the premises in whole or in part without Lessor's consent, but the making
of any sublease shall not release Lessee from, or otherwise affect in any manner, any of Lessee's
obligations under this lease agreement. Lessee shall not assign or transfer this lease agreement,
or any interest in this lease agreement, without the prior, express, and written consent of Lessor,
and one consent to an assignment shall not be deemed to be a consent to any subsequent
assignment. Lessor agrees to not unreasonably withhold consent to assignment, and further
agrees that assignment of the leasehold interest to an assignee that has qualified for
community/workforce housing as provided in the Community Housing Guidelines which are
incorporated herein, shall be presumed acceptable to Lessor and for which no written consent
will be required. Any assignment without consent shall be void, and shall, at the option of
Lessor, terminate this lease agreement. Except as provided in Section Ten above, neither this
lease agreement nor the leasehold estate of Lessee nor any interest of Lessee under this lease
agreement in the demised premises or any buildings or improvements on the demised premises
shall be subject to involuntary assignment, transfer, or sale, or to assignment, transfer, or sale by
operation of law in any manner whatever. Any such attempted involuntary assignment, transfer,
or sale shall be void and of no effect and shall, at the option of Lessor, terminate this lease
agreement. An assignment of this lease for security purposes in connection with the purchase of
the improvements built on the premises shall not require prior written consent provided that such
assignment for security purposes shall be expressly subject to the terms hereof.
Ground Lease - 4
SECTION TWELVE. NOTICES
A. All notices, demands, or other writings in this lease agreement provided to be given or
made or sent, or which may be given or made or sent, by either party to the other, shall be
deemed to have been fully given or made or sent when made in writing and deposited in the
United States mail, registered and postage prepaid, and addressed as follows:
To Lessor: City of McCall
216 E. Park St.
McCall, ID 83638
To Lessee: Neighborhood Housing Services, Inc.
1401 Shoreline Drive
Boise, ID 83707
B. The address to which any notice, demand, or other writing may be given or made or sent
to any party as above provided may be changed by written notice given by the party as above
provided.
SECTION THIRTEEN. TAXES AND ASSESSMENTS
A. Taxes as additional rental. As additional rental under this lease agreement, Lessee shall
pay and discharge as they become due, promptly and before delinquency, all taxes, assessments,
rates, charges, license fees, municipal liens, levies, excises, or imposts, whether general or
special, or ordinary or extraordinary, of every name, nature, and kind whatever, including all
governmental charges of whatever name, nature, or kind, which may be levied, assessed,
charged, or imposed, or which may become a lien or charge on or against the demised premises,
or any part of the demised premises, the leasehold of Lessee in and under this lease agreement,
the premises described in this lease agreement, any building or buildings, or any other
improvements now or later on the demised premises, or on or against Lessee's estate created by
this lease agreement that may be a subject of taxation, or on or against Lessor by reason of its
ownership of the fee underlying this lease agreement, during the entire term of this lease
agreement, excepting only those taxes specifically excepted below.
B. Assessments affecting improvements. Specifically and without in any way limiting the
generality of the provisions of paragraph A of this section, Lessee shall pay all special
assessments and levies or charges made by any municipal or political subdivision for local
improvements, and shall pay the same in cash as they shall fall due and before they shall become
delinquent and as required by the act and proceedings under which any such assessments or
levies or charges are made by any municipal or political subdivision. If the right is given to pay
either in one sum or in installments, Lessee may elect either mode of payment and its election
shall be binding on Lessor. If, by making any such election to pay in installments, any of the
installments shall be payable after the termination of this lease agreement or any extended term
Ground Lease - 5
of this lease agreement, the unpaid installments shall be prorated as of the date of termination,
and amounts payable after that date shall be paid by Lessor. All of the taxes and charges under
this Section Fourteen shall be prorated at the commencement and expiration of the term of this
lease agreement.
C. Contesting taxes. If Lessee shall, in good faith, desire to contest the validity or amount of
any tax, assessment, levy, or other governmental charge agreed in this section to be paid by
Lessee, Lessee shall be permitted to do so, and to defer payment of such tax or charge, the
validity or amount of which Lessee is so contesting, until final determination of the contest, on
giving to Lessor written notice prior to the commencement of any such contest, which shall be at
least sixty (60) days prior to delinquency, and on protecting Lessor on demand by a good and
sufficient surety bond against any such tax, levy, assessment, rate, or governmental charge, and
from any costs, liability, or damage arising out of any such contest.
D. Disposition of rebates. All rebates on account of any taxes, rates, levies, charges, or
assessments required to be paid and paid by Lessee under the provisions of this lease agreement
shall belong to Lessee, and Lessor will, on the request of Lessee, execute any receipts,
assignments, or other documents that may be necessary to secure the recovery of any rebates,
and will pay over to Lessee any rebates that may be received by Lessor.
E. Receipts. Lessee shall obtain and deliver receipts or duplicate receipts for all taxes,
assessments, and other items required under this lease agreement to be paid by Lessee, promptly
on payment of any such taxes, assessments, and other items.
SECTION FOURTEEN. CONSTRUCTION OF NEW BUILDING
A. Plans and specifications. On or before commencement of possession, Lessee shall, at
Lessee's sole expense, prepare plans and specifications for a new building to be erected on the
premises which shall provide for a single family residence to be used for community/workforce
housing. The plans and specifications shall be submitted to Lessor for Lessor's written approval
or any revisions required by Lessor. Lessor shall not unreasonably withhold approval, and in the
event of disapproval, Lessor shall give to Lessee an itemized statement of reasons for
disapproval within thirty (30) days after the plans and specifications are submitted to Lessor.
B. Arbitration. If plans and specifications are not approved by Lessor and Lessee in writing
within thirty (30) days after they are first submitted to Lessor, then Lessor and Lessee shall each
select an arbitrator, and the two arbitrators so selected shall select a third arbitrator. The three
arbitrators so selected shall hear and determine the controversy and their decision as to the final
plans and specifications shall be final and binding on both Lessor and Lessee, who shall bear the
cost of the arbitration equally between them. The arbitrators shall determine the controversy and
notify Lessor and Lessee in writing of their determination within fmo tberj days after the
controversy has first been submitted to the arbitrators. 1 :` �
C. Construction. On or before October 30, 2006 Lessee shall, at Lessee's sole expense,
commence and after such date diligently prosecute to completion the demolition of the existing
Ground Lease - 6
improvements and the construction of the single family residence, in accordance with the plans
and specifications. Prior to the commencement of any work, Lessee shall furnish Lessor with a
good and sufficient surety bond guaranteeing the completion of the building and the payment of
all bills in connection with the work.
D. Alterations, improvements, and changes permitted. Les ee shall have the right to make
such alterations, improvements, and changes to any building th t may, from time to time, be on
the premises as Lessee may deem necessary, or to replace any building with a new one of at least
equal value, provided that prior to making any structural alterations, improvements, or changes,
or to replacing any building, Lessee shall obtain Lessor's written approval of the plans and
specifications, which approval Lessor shall not unreasonably withhold, provided that the value of
the building shall not be diminished and the structural integ �'ty of the building shall not be
adversely affected by any such alterations, improvements, or changes, or that any proposed new
building is at least equal in value to the one that it is to replace,,' as the case may be. In the event
of disapproval, Lessor shall give to Lessee an itemized statement of reasons for the disapproval.
If Lessor does not disapprove the plans and specifications provided for in this section within
s (co`X 4 `� *Tumbril- days after they have been submitted to Lessor, the plans and specifications shall be
/.fit• deemed to have been approved by Lessor. Lessee will in no event make any alterations,
improvements, or other changes of any kind to any building on the premises that will decrease
the value of the building, or that will adversely affect the structural integrity of the building.
Prior to commencing any work that will cost in excess of $$1,000.00 Lessee shall furnish Lessor,
on demand, with a good and sufficient surety bond insuring the completion of the work and the
payment of all bills in connection with the work.
E. Lessor may choose to pay or defer the following expense associated with the construction
of the single family residence: permit fees, plan review fees, site development costs including but
not limited to tree removal, excavation and grading, and construction of foundation and utilities.
Any such expenses deferred or paid by Lessor shall be reimbursed to Lessor upon closing of the
contemplated sale of the leasehold improvement.
F. Disposition of new improvements. Any new building constructed by Lessee on the
premises, and all alterations, improvements, changes, or additions made in or to the premises
shall be the property of Lessee, and Lessee shall have a leasehold interest in them, subject to the
terms of this lease agreement.
SECTION FIFTEEN. REPAIRS AND DESTRUCTION OF IMPROVEMENTS
A. Maintenance of improvements. Lessee shall, throughout the term of this lease agreement,
at its own cost, and without any expense to Lessor, keep and maintain the premises, including all
buildings and improvements of every kind that may be a part of the premises, and all
appurtenances to the premises, including sidewalks adjacent to the premises, in good, sanitary,
and neat order, condition and repair, and, except as specifically provided in this lease agreement,
restore and rehabilitate any improvements of any kind that may be destroyed or damaged by fire,
casualty, or any other cause whatever.
Ground Lease - 7
B. No obligation by Lessor to make improvements. Lessor shall not be obligated to make
any repairs, replacements, or renewals, of any kind, nature, or description, to the demised
premises or any buildings or improvements on the demised premises.
C. Lessee's compliance with laws. Lessee shall also comply with and abide by all federal,
state, county, municipal, and other governmental statutes, ordinances, laws, and regulations
affecting the demised premises, the improvements on or any activity or condition on or in the
premises.
D. Damage to and destruction of improvements. The damage, destruction, or partial
destruction of any building or other improvement that is a part of the demised premises shall not
release Lessee from any obligation under this lease agreement. In case of damage to or
destruction of any such building or improvement, Lessee shall, at its own expense, promptly
repair and restore it to a condition as good or better than that which existed prior to the damage
or destruction. Without limiting the obligations of Lessee, it is agreed that the proceeds of any
insurance covering damage or destruction shall be made available to Lessee for repair or
replacement.
SECTION SIXTEEN. UTILITIES
Lessee shall fully and promptly pay for all water, gas, heat, light, power, telephone service,
and other public utilities of every kind furnished to the premises throughout the term of this lease
agreement, and all other costs and expenses of every kind whatever of or in connection with the
use, operation, and maintenance of the premises and all activities conducted on the premises, and
Lessor shall have no responsibility of any kind for any such utilities.
SECTION SEVENTEEN. LIENS
A. Lessee's duty to keep premises free of liens. Lessee shall keep all and every part of the
premises and all buildings and other improvements at any time located on the premises free and
clear of any and all mechanics', material suppliers', and other liens for or arising out of or in
connection with work or labor done, services performed, or materials or appliances used or
furnished for or in connection with any operations of Lessee, any alteration, improvement, or
repairs or additions that Lessee may make or permit or cause to be made, or any work or
construction, by, for, or permitted by Lessee on or about the premises, or any obligations of any
kind incurred by Lessee, and at all times promptly and fully to pay and discharge any and all
claims on which any such lien may or could be based, and to indemnify Lessor and all of the
premises and all buildings and improvements on the premises from and against any and all such
liens and claims of liens and suits or other proceedings pertaining to the premises.
B. Written notice. Lessee shall give Lessor written notice no less than thirty (30) days in
advance of the commencement of any construction, alteration, addition, improvement, or repair
estimated to cost in excess of $1,000.00 in order that Lessor may post appropriate notices of
Lessor's nonresponsibility.
Ground Lease - 8
C. Contesting liens. If Lessee desires to contest any lien, it shall notify Lessor of its intention
to do so within thirty (30) days after the filing of the lien. In that case, and provided that Lessee
shall, on demand, protect Lessor by a good and sufficient surety bond against any lien and any
cost, liability, or damage arising out of such contest, Lessee shall not be in default under this
lease agreement until thirty (30) days after the final determination of the validity of the lien,
within which time Lessee shall satisfy and discharge the lien to the extent held valid. However,
the satisfaction and discharge of any lien shall not, in any case, be delayed until execution is had
on any judgment rendered on the lien, and such delay shall be a default of Lessee under this lease
agreement.
D. Indemnification. In the event of any such contest, Lessee shall protect and indemnify
Lessor against any and all loss, expense, and damage resulting from the contest.
SECTION EIGHTEEN. INDEMNIFICATION OF LESSOR
Lessor shall not be liable for any loss, injury, death, or damage to persons or property that at
any time may be suffered or sustained by Lessee or by any person who may at any time be using
or occupying or visiting the demised premises or be in, on, or about the demised premises,
whether the loss, injury, death, or damage shall be caused by or in any way result from or arise
out of any act, omission, or negligence of Lessee or of any occupant, subtenant, visitor, or user of
any portion of the premises, or shall result from or be caused by any other matter or thing
whether of the same kind as, or of a different kind than, the matters or things above set forth.
Lessee shall indemnify Lessor against any and all claims, liability, loss, or damage whatever on
account of any such loss, injury, death, or damage. Lessee waives all claims against Lessor for
damages to the building and improvements that are now on or later placed or built on the
premises and to the property of Lessee in, on, or about the premises, and for injuries to persons
or property in or about the premises, from any cause arising at any time. The two preceding
sentences shall not apply to loss, injury, death, or damage arising by reason of the negligence or
misconduct of Lessor, its agents, or employees.
SECTION NINETEEN. ATTORNEY'S FEES
If any action at law or in equity shall be brought to recover any rent under this lease
agreement, or for or on account of any breach of, or to enforce or interpret any of the covenants,
terms, or conditions of this lease agreement, or for the recovery of the possession of the demised
premises, the prevailing party shall be entitled to recover from the other party, as part of the
prevailing party's costs, reasonable attorney's fees, the amount of which shall be fixed by the
court and shall be made a part of any judgment or decree rendered.
SECTION TWENTY. OPTION TO RENEW
Lessor grants to Lessee, subject to the conditions set forth below, the right and opion to
renew this lease agreemen J r a period of ten (10) years, beginning on October 1, 2 nd
M-expiring on September 30,264 at a rental determined as provided above, and otherwise subject
to and on all of the terms and conditions contained in this lease agreement. This option must be
exercised by the giving to Lessor, on or before July 31, 2456 a written notice of the exercise of
a,05 r`8,
Ground Lease - 9
the option by Lessee, but Lessee shall, in no event, be entitled to renew the term of this lease
agreement, even though the notice be timely given, unless Lessee shall have timely performed all
of its obligations under this lease agreement, and shall not be in default in the performance of
any such obligations, on the date of the expiration of the initial term of this lease agreement.
SECTION TWENTY-ONE. REDELIVERY OF PREMISES
Lessee shall pay the rent and all other sums required to be paid by Lessee under this lease
agreement in the amounts, at the times, and in the manner provided in this lease agreement, and
shall keep and perform all the terms and conditions on its part to be kept and performed. At the
expiration or earlier termination of this lease agreement, Lessee shall peaceably and quietly quit
and surrender to Lessor the premises in good order and condition subject to the other provisions
of this lease agreement. In the event of the nonperformance by Lessee of any of the covenants of
Lessee undertaken in this lease agreement, this lease agreement may be terminated as provided
elsewhere in this instrument.
SECTION TWENTY-TWO. REMEDIES CUMULATIVE
All remedies conferred on Lessor in this lease agreement shall be deemed cumulative and no
one exclusive of the other, or of any other remedy conferred by law.
SECTION TWENTY-THREE. INSURANCE
A. Insurance coverage of premises. Lessee shall, at all times during the term of this lease
agreement and at Lessee's sole expense, keep all improvements that are now or later a part of the
premises insured against loss or damage by fire and the extended coverage hazards the full
replacement value of the improvements, with loss payable to Lessor and Lessee as their interests
may appear. Any loss adjustment shall require the written consent of both Lessor and Lessee.
B. Personal injury liability insurance. Lessee shall maintain in effect throughout the term of
this lease personal injury liability insurance covering the premises and its appurtenances and the
sidewalks fronting on them in the amount equal to the Idaho Tort Claim limits now in effect or
hereafter amended. Such insurance shall specifically insure Lessee against all liability assumed
by it under this lease agreement, as well as liability imposed by law, and shall insure both Lessor
and Lessee but shall be so endorsed as to create the same liability on the part of the insurer as
though separate policies had been written for Lessor and Lessee.
C. Lessor's right to pay premiums on behalf of Lessee. All of the policies of insurance
referred to in this section shall be written in a form satisfactory to Lessor and by insurance
companies satisfactory to Lessor. Lessee shall pay all of the premiums for insurance and deliver
policies, or certificates of policies, to Lessor. In the event of the failure of Lessee, either to effect
insurance in the names called for in this lease agreement or to pay the premiums for the
insurance or to deliver the policies, or certificates of the policies, to Lessor, Lessor shall be
entitled, but shall have no obligation, to effect such insurance and pay the premiums for the
Ground Lease - 10
insurance, which premiums shall be repayable to Lessor with the next installment of rental.
Failure to repay the same shall carry with it the same consequence as failure to pay any
installment of rental. Each insurer mentioned in this section shall agree, by endorsement on the
policy or policies issued by it, or by independent instrument furnished to Lessor, that it will give
to Lessor thirty (30) days' written notice before the policy or policies in question shall be altered
or canceled. Lessor agrees that it will not unreasonably withhold its approval as to the form or to
the insurance companies selected by Lessee.
D. Definition of full replacement value. The term "full replacement value" of improvements,
as used in this lease agreement, shall mean the actual replacement cost of the improvements from
time to time less exclusions provided in the normal fire insurance policy.
E. Cost of insurance deemed additional rental. The cost of insurance required to be carried
by Lessee in this section shall be deemed to be additional rental under this lease agreement.
SECTION TWENTY-FOUR. PROHIBITION OF INVOLUNTARY
ASSIGNMENT;EFFECT OF BANKRUPTCY OR INSOLVENCY
A. Prohibition of involuntary assignment. Neither this lease agreement nor the leasehold
estate of Lessee nor any interest of Lessee under this lease agreement in the demised premises or
in the building or improvements on the demised premises shall be subject to involuntary
assignment, transfer, or sale, or to assignment, transfer, or sale by operation of law in any
manner whatever (except through statutory merger or consolidation, or devise, or intestate
succession, excepting foreclosure or voluntary relinquishment in lieu of foreclosure as set forth
at Section Ten above); any attempt at involuntary assignment, transfer, or sale shall be void and
of no effect.
B. Effect of bankruptcy. Without limiting the generality of the provisions of the preceding
paragraph A of this section, Lessee agrees that if any proceedings under the Bankruptcy Act or
any amendment to the act be commenced by or against Lessee, and, if against Lessee, the
proceedings shall not be dismissed before either an adjudication in bankruptcy or the
confirmation of a composition, arrangement, or plan or reorganization, or if Lessee is adjudged
insolvent or makes an assignment for the benefit of its creditors, or if a receiver is appointed in
any proceeding or action to which Lessee is a party, with authority to take possession or control
of the demised premises or the business conducted on the premises by Lessee, and such receiver
is not discharged within a period of thirty (30) days after his or her appointment, any such event
or any involuntary assignment prohibited by the provisions of the preceding paragraph A of this
section shall be deemed to constitute a breach of this lease agreement by Lessee and shall, at the
election of Lessor, but not otherwise, without notice or entry or other action of Lessor, terminate
this lease agreement and also all rights of Lessee under this lease agreement and in and to the
demised premises and also all rights of any and all persons claiming under Lessee.
SECTION TWENTY-FIVE. NOTICE OF DEFAULT
Ground Lease - 11
A. Except as to the provisions of Sections Eleven and Twenty-Four of this lease agreement,
Lessee shall not be deemed to be in default under this lease agreement in the payment of rent or
the payment of any other moneys as required or in the furnishing of any bond or insurance policy
when required in this lease agreement unless Lessor shall first give to Lessee thirty (30) days'
written notice of the default and Lessee fails to cure the default within thirty (30) days.
B. Except as to the provisions or events referred to in the preceding paragraph of this
section, Lessee shall not be deemed to be in default under this lease agreement unless Lessor
shall first give to Lessee thirty (30) days' written notice of the default, and Lessee fails to cure
the default within the thirty (30) day period, or, if the default is of such a nature that it cannot be
cured within thirty (30) days, Lessee fails to commence to cure the default within the period of
thirty (30) days or fails to proceed to the curing of the default with all possible diligence.
SECTION TWENTY-SIX. DEFAULT
In the event of any breach of this lease agreement by Lessee, Lessor, in addition to the other
rights or remedies it may have, shall have the immediate right of reentry and may remove all
persons and property from the demised premises. The property may be removed and stored in a
public warehouse or elsewhere at the cost and for the account of Lessee. Should Lessor elect to
reenter, as provided in this lease agreement, or should it take possession pursuant to legal
proceedings or pursuant to any notice provided for by law, Lessor may either terminate this lease
agreement or it may from time to time, without terminating this lease agreement, relet the
demised premises or any part of the demised premises for such term or terms (which may be for
a term extending beyond the term of this lease agreement) and at such rental or rentals and on
such other terms and conditions as Lessor in the sole discretion of Lessor may deem advisable
with the right to make alterations and repairs to the demised premises. On each reletting: (a)
Lessee shall be immediately liable to pay to Lessor, in addition to any indebtedness other than
rent due under this lease agreement, the expenses of reletting and of making such alterations and
repairs, incurred by Lessor, and the amount, if any, by which the rent reserved in this lease
agreement for the period of reletting (up to but not beyond the term of this lease) exceeds the
amount agreed to be paid as rent for the demised premises for the period on reletting; or (b) at
the option of Lessor, rents received by the Lessor from reletting shall be applied, first, to the
payment of any indebtedness, other than rent due under this lease agreement from Lessee to
Lessor; second, to the payment of any expenses of reletting and of making alterations and
repairs; third, to the payment of rent due and unpaid under this lease agreement, and the residue,
if any, shall be held by Lessor and applied in payment of future rent as it may become due and
payable under this lease agreement. If Lessee has been credited with any rent to be received by
reletting under option (a), above, and the rent was not promptly paid to Lessor by the new tenant,
or if the rentals received from the reletting under option (b), above, during any month is less than
that to be paid during that month by Lessee under this lease agreement, Lessee shall pay any
deficiency to Lessor. The deficiency shall be calculated and paid monthly. No reentry or taking
possession of the demised premises by Lessor shall be construed as an election on the part of
Lessor to terminate this lease agreement unless a written notice of such intention is given to
Lessee or unless the termination of this lease agreement is decreed by a court of competent
jurisdiction. In spite of any reletting without termination, Lessor may, at any subsequent time,
Ground Lease - 12
elect to terminate this lease agreement for such previous breach. Should Lessor at any time
terminate this lease agreement for any breach, in addition to any other remedy it may have,
Lessor may recover from Lessee all damages incurred by reason of the breach, including the cost
of recovering the demised premises, and including the worth at the time of termination of the
excess, if any, of the amount of rent and charges equivalent to rent reserved in this lease for the
remainder of the stated term over the then reasonable rental value of the demised premises for
the remainder of the stated term, all of which amounts shall be immediately due and payable
from Lessee to Lessor.
Notwithstanding the foregoing, in the event that the Lessee's leasehold interest is subject
to an encumbrance by the United States Department of Agriculture, Rural Development
program, or similar loan program, Lessor agrees that Lessor will not terminate the lease unless
Lessor has provided advance written notice to said agency of Lessee's default not less than
ninety (90) days prior to such termination and such default remains uncured. Said agency may
cure Lessee's default during the ninety day period
In the event Lessor is in default under any of the terms of this agreement, Lessee shall
provide written notice to Lessor specifying the nature of the default and giving Lessor not less
than thirty (30) days in which to cure such default. If Lessor fails to cure the default within the
time specified in the notice, Lessee shall be entitled to all remedies available to Lessee under
Idaho law..
SECTION TWENTY-SEVEN. LESSOR'S RIGHT TO PERFORM
If Lessee, by failing or neglecting to do or perform any act or thing provided in this lease
agreement by it to be done or performed, shall be in default under this lease agreement and such
failure shall continue for a period of ten (10) days after written notice from Lessor specifying the
nature of the act or thing to be done or performed, then Lessor may, but shall not be required to,
do or perform or cause to be done or performed such act or thing (entering on the demised
premises for such purposes, if Lessor shall so elect), and Lessor shall not be held liable or in any
way responsible for any loss, inconvenience, annoyance, or damage resulting to Lessee on
account of that election. Lessee shall repay to Lessor on demand the entire expense incurred on
account of the election, including compensation to the agents and employees of Lessor. Any act
or thing done by Lessor pursuant to the provisions of this section shall not be construed as a
waiver of any such default by Lessee, or as a waiver of any covenant, term, or condition
contained in this lease agreement, or of any other right or remedy of Lessor, under this lease
agreement or otherwise. All amounts payable by Lessee to Lessor under any of the provisions of
this lease agreement, if not paid when they become due as in this lease agreement provided, shall
bear interest from the date they become due until paid at the rate of twelve percent (12%) per
annum, compounded annually.
SECTION TWENTY-EIGHT. EFFECT OF EMINENT DOMAIN
A. Effect of total condemnation. If the entire demised premises shall be appropriated or
Ground Lease - 13
taken under the power of eminent domain by any public or quasi-public authority, this lease
agreement shall terminate and expire as of the date of the taking, and Lessee shall then be
released from any liability subsequently accruing under this lease agreement.
B. Effect of partial condemnation. If a portion of the demised premises shall be so
appropriated or taken and the remainder of the property shall not be suitable for the use then
being made of the property by Lessee, or if the remainder of the property is not one undivided
parcel of property, Lessee shall have the right to terminate this lease a reement as of the date of
the taking on giving to Lessor written notice of termination within f t�j d s fler Lessor
has notified Lessee in writing that the property has been so appropriated or taken.I
C. If there is a partial taking and Lessee does not so terminate this lease agreement, then this
lease agreement shall continue in full force and effect as to the part not taken, and the rental to be
paid by Lessee during the remainder of the term, subject to adjustment as provided in the rental
adjustment provisions of Section Three of this lease agreement, shall be determined in the
manner provided for in the rental adjustment provisions. Any such determination shall not affect
or change the times at which Lessor may require an adjustment in rent under those provisions;
provided, however, that the words "which in no event shall be less than the rental then being paid
by Lessee" appearing in the rental adjustment provisions shall not apply with respect to such
determination, but shall apply with respect to any subsequent adjustment under the rental
adjustment provisions.
D. Condemnation award. In the event of the termination of this lease agreement by reason of
the total or partial taking of the premises by eminent domain, then in any such condemnation
proceedings, Lessor and Lessee shall be free to make claim against the condemning or taking
authority for the amount of any damage done to them, respectively, as a result of the condemning
or taking.
E. In the event of a partial taking of the demised premises and this lease agreement is not
terminated, then Lessee shall have the right to make claim against the condemning or taking
authority for only the unamortized cost of the improvements placed on the demised premises by
Lessee and located on the premises at the time of the taking or appropriation, which
improvements shall be deemed to amortize in equal annual amounts over the period commencing
with the date of completion of the improvements and ending thirty (30) years after completion.
SECTION TWENTY-NINE. SURRENDER OF LEASE
The voluntary or other surrender of this lease agreement by Lessee, or a mutual cancellation
of this lease agreement, shall not work a merger, and shall, at the option of Lessor, terminate all
or any existing subleases or subtenancies or may, at the option of Lessor, operate as an
assignment to it of any or all such subleases or subtenancies.
SECTION THIRTY. DISPOSITION OF IMPROVEMENTS ON TERMINATION OF
LEASE
On termination of this lease agreement for any cause, Lessor shall have a first right of refusal
Ground Lease - 14
to purchase any building or improvements on the demised premises.
SECTION THIRTY-ONE. TRANSFER OF SECURITY
If any security is given by Lessee to secure the faithful performance of all or any of the
covenants of this lease agreement on the part of Lessee, Lessor may transfer or deliver the
security, as such, to the purchaser of the reversion, if the reversion be sold, and then Lessor shall
be discharged from any further liability in reference to the security.
SECTION THIRTY-TWO. WAIVER
The waiver by Lessor of, or the failure of Lessor to take action with respect to, any breach of
any term, covenant, or condition contained in this lease agreement shall not be deemed to be a
waiver of such term, covenant, or condition, or subsequent breach of the same, or any other term,
covenant, or condition contained in this lease agreement. The subsequent acceptance of rent
under this lease agreement by Lessor shall not be deemed to be a waiver of any preceding breach
by Lessee of any term, covenant, or condition of this lease agreement, other than the failure of
Lessee to pay the particular rental so accepted, regardless of Lessor's knowledge of a preceding
breach at the time of acceptance of rent.
SECTION THIRTY-THREE. EFFECT OF LESSEE'S HOLDING OVER
Any holding over after the expiration of the term of this lease agreement, with the consent of
Lessor, shall be construed to be a tenancy from month-to-month, at the same monthly rental as
required to be paid by Lessee for the period immediately prior to the expiration of the term of
this lease agreement, and shall otherwise be on the terms and conditions specified in this lease
agreement, so far as applicable.
SECTION THIRTY-FOUR. PARTIES BOUND
The covenants and conditions contained in this lease agreement shall, subject to the
provisions as to assignment, transfer, and subletting, apply to and bind the heirs, successors,
executors, administrators, and assigns of all of the parties to the lease agreement. All of the
parties shall be jointly and severally liable under this lease agreement.
SECTION THIRTY-FIVE. TIME OF THE ESSENCE
Time is of the essence of this lease agreement, and of every covenant, term, condition, and
provision of this lease agreement.
SECTION THIRTY-SIX. SECTION CAPTIONS
The captions appearing under the section number designations of this lease agreement are for
convenience only and are not a part of this lease agreement and do not in any way limit or
amplify the terms and provisions of this lease agreement.
Ground Lease - 15
SECTION THIRTY-SEVEN.GOVERNING LAW
This lease agreement shall be governed by, construed, and enforced in accordance with the
laws Idaho.
SECTION THIRTY-EIGHT.ENTIRE AGREEMENT
This lease agreement shall constitute the entire agreement between the parties. Any prior
understanding or representation of any kind preceding the date of this lease agreement shall not
be binding on either party except to the extent incorporated in this agreement.
SECTION THIRTY-NINE.MODIFICATION OF AGREEMENT
Any modification of this lease agreement or additional obligation assumed by either party in
connection with this lease agreement shall be binding only if evidenced in a writing signed by
each party or an authorized representative of each party.
SECTION FORTY.ADDITIONAL DOCUMENTS
The parties agree to execute whatever papers and documents may be necessary to effectuate
the terms of this lease agreement.
Each party to this agreement has caused it to be executed at McCall, Idaho on the date
indicated below.
September 28, 2006
[Attach exhibits]
Ground Lease - 16
NEIGHBORHOOD HOUSING SERVICES,INC. CITY OF MCCALL
t fi By: 77ijiA . By: j/�r`,1 j 1 f_vti, ;1 IZd(r(i3 GV1 , Mayor
ATTEST:
c)By: cY�rt�
I J ,City Clerk
STATE OF IDAHO, )
)ss
County of ACA c )
On this, ' day oEj ember , 2006, before me, L., sc Yl1 , L_�, b\_ , a Notary Public
in and for said State, personally. eared I,, • ,c V . Lc. knownibr identified to me
to be the EX,e c j--t v ,f G — of Ne ghborhood Housing Services, Inc., an
Idaho non-profit corporation that executed the instrument or the person that executed the instrument on of
behalf of said corporation and acknowledged to me that such corporation executed the same.
IN WITNESS xi-16)44 F, I have hereunto set my hand and affixed my official seal, the day and
year in this certifi firgal ' en. ' 4I1 • 47.3
(SEAL) K e '`'' `'� IT• 'Y PUB i ' DAHO
I '°"" My Commission Expires: 31 JcD)
STATE OF IDA Q``77 `_)
"^ , r ,iss
County of Valley. )
On this day of 2006, before me
Y �' ('�� me, , hir(.u)) �_ h,�G'�r�G';'l , a Notary Public
in and for said State, personally appeared William A. Robertson and Joanne York known or identified to
me to be the Mayor and the City Clerk of the City of McCall, ID, respectively, the Idaho municipal
corporation that executed the instrument or the person that executed the instrument on of 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 certifwai+efritst=allove written.
so , OL '
� /1
(SEAL) 01 pR Y NOTARY PUBLIC FOR IDAHO
v� •: t' •s • ... , My Commission Expires: //-Z-7 -2<1'
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Ground Leas&•,J7TE O ' E''4
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Exhibit I
All that certain lot, piece or parcel of land situate in Valley County, Idaho and shown as
Lot 7, Block 3, Greystone Village No. 3, a plat which is recorded in the office of the
recorder of Valley County, Idaho.
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Valley County Assessor's Office
P.O.Box 1350 • 219 N. Main Street
Cascade,Idaho 83611-1350 V .,, Department of Motor Vehicles
Phone(208)382-7126 • Fax(208)382-7107 417 ;` ,2 Phone(208)382-7141 • Fax(208)382-7107
KAREN CAMPBELL a DEEDEE GOSSI
Assessor s.> , Chief Deputy Assessor
kcampbell @co.valley.id.us f%f. \. kgossi @co.valley.id.us
CITY OF MCCALL GREYSTONE VILLAGE NO. 3
216 E PARK STREET LOT 7 BLOCK 3
MCCALL ID 83638
Congratulations on your recent Valley County property
acquisition! We sincerely hope that your ownership of this
property will prove to be enjoyable and long lasting. In an
attempt to provide you with helpful and money saving infor-
mation, we would like to inform you about Idaho's Homeowner's
Exemption. Before April 15th, if this property is owner-
occupied and used as your primary dwelling place, you may be
eligible to apply for this exemption. The application period
is from January 2nd through April 15th, of each year. If you
need assistance in the application process or have any quest-
ions, please feel free to contact our office.
Our office annually gathers and confirms sales data to be
used statistically in various studies. Sales information is
primarily collected from the records of each county. These
records do not always indicate sales prices or terms, so de-
tails of a transaction must be verified by the buyer or
seller of the property.
The purpose of the studies conducted by this office is to
ensure fair property valuation county-wide. Equitable tax-
rtcn :._ only be achieved with your cooperation. Your
assistance in furnishing the needed information on the en-
closed questionaire will be greatly appreciated.
Sincerely,
C44/1 //
Karen Cam..- 1
Valley County Assessor
encl.
RPM05750030070I INSTRUMENT#313567
12/15/2006 ' SALES VERIFICATION Type Location 7000
Cama Area# 1
Seller: GREYSTONE VILLAGE, LLC
Buyer: CITY OF MCCALL
Address: 216 E PARK STREET Legal Description
MCCALL ID 83638
GREYSTONE VILLAGE NO. 3
LOT 7 BLOCK 3
Property Address: (Please complete if blank)
•
1. Total sale price $ R( d ou�l-Le_ ,L.ti ,• Date of 914 Month apt Year lc
2. Down payment $ Loan amount$ Interest rate % Years
Financing (X): Conventional VA FHA Cash Private IHA Other:
3. If furniture, fixtures, etc. were included in total price, please estimate the value and list the items included:
Value$ Items:
4. This sale was: _an ordinary transaction _a trade _an estate sale _a foreclosure
_between family _an easement _a condemnation _other:
5. The type of property was: _Commercial _Residential _Agricultural _Other:
Was this bare land? Yes No
6. Was a manufactured home included as part of the sale? Yes No
7. If the property was rented at the time of sale, what was the rental amount? Monthly$ Annually$
Remarks and conditions of the sale:
,SIGNATURE: tAAva-l_ e N 1 CI 12 FIX 1 C_(Ail) < c DATE: - ) 7 -C 7
WORK PHONE: (,)0'; 1 14$q - / i Li HOME PHONE:
RPM05750030070I
Rev 1/02
a �
C�(l
vl&evt 4 Instrument# 336925
VALLEY COUNTY,CASCADE,IDAHO
11-26-2008 09:13:11 No.of Pages:4
Recorded for:CITY OF MCCALL
ARCHIE N.BANBURY Fee 0.00 .
Ex-Officio Recorder
Ind.,to LEASE
Recording Requested by and
When Recorded Return to:
Acting City Clerk
City of McCall
216 East Park Street
McCall,Idaho 83638
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 28th day of
September, 2006 (the "Agreement") recorded in Valley County, Idaho May 23, 2007 as
Instrument No. 321619, 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.
wiz�ut�•. O /a-...ems _
Connie Hogland,Chief Executive Bert Kulesza,M:yor
Officer
ATTEST:
BY: A"( c111..1O2v4-
Brenna Chaloupka,Acting qty Clerk
First Amendment to Ground Lease—Page 2
STATE OF IDAHO, )
. ss:
County of , a'' , )
On this i 1 dy day of ■ velq�L, 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.
IminW4�IESS WHEREOF, I have hereunto set my hand and affixed my official seal,
•„�,w 'h�,this certificate first above writtendL1
110TA4pz. - L j,, --
14S� AL)•••■
v► AVBLIG
* ' Notary Idaho
•,V' a0'i My Commission Expires: V/A2/,20 t3
STATE OF IDAHO, )
: ss:
County of Valley,ft )
On this day of ( ,Jeti.�Cie�"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.
�j`
(SEAL) ``�N�uuumrinu o tl ��.1. it
`�O W AGI 1''i, Notary Publi T or Idaho
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y5\r'''�R� '� My Commission Expires: Mir 4.,
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4,14,71ATE Of AO
itimmitnal-
First Amendment to Ground Lease-Page 3
EXHIBIT "A"
LEGAL DESCRIPTION
OF
PROPERTY
Lot 7, Block 3, Greystone Village No. 3, 1551 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