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HomeMy Public PortalAbout2006.09.28 Ground Lease Lot 3" Instrument # 316934 VALLEY COUNTY, CASCADE, IDAH ` 2006-12-29 09:03:22 Nty6f Pages: 19 Recorded for : CITY OF MCCA LELAND G. HEM�.5 FA`.�� Exficio Recorder D Deputy WE( to: LEASE Instrument # 314100 VALLEY COUNTY, CASCADE, ID_ 2006-10-06 09:42: o. of Pages: 19 Recorded for : CITY OF ALL LELAND G. HEINRICH,,/ Ex-OfOcio Recorder eputy Imlay tn- I FARF GROUND LEASE F00 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 # 321616 Now, Therefore, VALLEY COUNTY, CASCADE, IDAHO 2007-05-23 04:00:03 No. of Pages: 21 Recorded for : CITY OF MCCALL The parties agree as follows: ARCHIE N. BANBURY Ex-Oflfcio Recorder Deputy Index to: EASEMENT SECTION ONE. DEMISE, DESCRIPTION, AND USE 0 PREMISES Fee: 0.00 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 nune+y-►tizie (--qf) PIA Cvunu.l at -Am 3-1-67 The initial term of this lea e hall be for fifty (50} years, commencing on the date hereof, and ending on September 30, 5 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 L Subject to adjustment as provided below, the total rent for the initial term shall be $ . p 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. A11 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 { rtberJ. days after the controversy has first been submitted to the arbitrators. a 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. Lessee shall have the right to make such alterations, improvements, and changes to any building that 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 integrity 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 C��+% [�jt days after they have been submitted to Lessor, the plans and specifications shall be 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 option to renew this lease agreemenf a period of ten (10) years, beginning on October 1, a°nand ('expiring on September 30, , 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, 2$56- a written notice of the exercise of 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 reemen a of the date of the taking on giving to Lessor written notice of termination within [ urr`a` J�aay� a)'ter Lessor has notified Lessee in writing that the property has been so appropriated or taken. 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 By: By: bit l l iG.rtic41 , Mayor ATTEST: By: City Clerk STATE OF IDAHO, ) )ss County of Adr,_ ) On this — day o6 4es , , 2006, before me, m •• L1b , a Notary Public in and for said State, personal appeared �� omas / i a known or identified to me to be the Ky Q e of t.v f___. 4if r ec-k r- of Neighborhood 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 WITNE$►`' ;Y I have hereunto set my hand and affixed my official seal, the day and year in this certif tA�ss s. % - " . -n. 4,0T A*,. S L (SEAL) .a •t • A' PUBLIC`FO' • HO) �` I My Commission Expires: 5/ 31/ aOQ 7 ?fi.� f J; 8� ���- � • �� yj • STATE OF IDAlT . 7 F at "..40-1)ss County of Valley. On this 4 day of 0 C i , 2006, before me, _91 i - ( ,k i it , 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 certificate -first above written. Z.77,Zi (e-t) �•(�'l ti (SEAL) ; •- My Commission Expires: //- 2/ - O,� l ,c .. P U'B L p •:. (l'•�� w.� Z ee e Ground LeaSdg11/E OF 8.•`'�� Exhibit I All that certain lot, piece or parcel of land situate in Valley County, Idaho and shown as Lot 3, Block 3, Greystone Village No. 3, a plat which is recorded in the office of the recorder of Valley County, Idaho. " 9 MILL RUN CONDOS NO 2-8 m�� m` w\W o 4'�� m I���� 40 20 0 40 80 120 SCALE N FEET UNPLA TTED PLAT OF GREYSTONE VILLAGE NO. 3 A PORTION OF GOYT LOT I, SECTION 9, AND A PORTION OF GOVT LOT 3, SECTION 4, T. 18 N., R. 3 E. 8.M. MCCAL, VALLEY COUNTY, IDAHO 2006 CANDLEWOOD CONDOMINIUMS % m�� " " m`m\ m\ A\ v\ w\ lESzELYC2 BREAJ. PONT OF BEOMNNG. SET 5/B RENT W/ CM B FOND BUSS GAP " SET 5/11100. NEW WITH PLASTIC CAP " SD 1/21Q/' REBAR LAIN PLASTIC CAP O FOUND 5/11' REBAR " FOUND I/2' REAM --- BOUNDARY UNE RIOT -OF -WAY UNE LOT NNE 3,10 - 1/4 CORNER 4. 9 EOM BRASS PM 1 GPM. NO. ABMS _a ri"E ��I SCOR. 4 GOVT. LOT 3 , 9 NE fO0. N 1/1 ��R FO. 1/2 RUM THE ASPENS CONDOMINIUM SUBDIVISION UNPL1 TTED MILL PARK VILLAGE SUBDIVISION NOTES 1. MESS OTHERWISE SHOWN, ALL LOTS ARE HEREBY DESIGNATED AS HAVRE A PERMANENT EASEMENT FOR PUBLIC MITRES, STREET UGHTS. NRIDAION, LOT DRUNAGE AND LANDSCAPE OVER THE TWELVE 02) FEET ADJACENT TO ANY PUBIC STREET. MS EASEMENT SHALL NOT PRECLUDE THE CONSTRUCTION OF WAD -SURFACED DRNLWAYS AEC WALKWAYS TO EACH LOT. 2. UNLESS OPERWSE SHOWN OR DESIGNATED, ALL LOTS ARE MENEM DESIGNATED AS INNING A PERIM/NM WNW- FOR PUBC MUTES WPoGA7WN AND LOT DRAINAGE OVER THE SEVEN (7) FEET ADJACENT TO ALLY METER SIDE LOT UTE, AND OVER THE TEN (10) FELT ADJACENT TO ANY REAR EDT UNE CR SUBDMSKN BOUNDARY. 3. BULIMIC SETBACKS IN CBS SUBDMSION SHALL BE ACCORDANCE 1MI THE APPLICABLE ZONING ORDNANCE IN EFFECT AT THE TIDE OF THE ISVIAcE OF THE BUILDING PERMIT OR AS SPECIFICALLY APPROVED. 4. ANY RE-SUBDMSION OF DRIS PUT SHILL COMPLY WITH THE APPLIGABE REGUATIONS IN ERECT AT THE DACE OF DIE RE-SUBO SIGN. 5. RESTRICTIVE COVENANTS WALL BE IN ETTECT FOR THIS SDMOMAON. 6. LOT 6, BLOCK 3, IS A NON -Bum). F LOT TO BE OWNED AND MAMNNED BY THE GEMSTONE MUAGE HOMEOWNERS ASSOCIATION, OR 1S MOS, AND SHALL BE USED AS LANDSCAPE AN0 PEDESTRIAN ACCESS 8. SEE MENDED RECORD OF SURVEY NO. 281549 FOR AIDTIONA DATA OF RECORD. 9. UTILMES HAVE NOT BEEN INSTALLED AT THE TIME OF RECORDATION OF THIS PLAT. To. SEE RECORD a SNNEY. INSTHUNEM N0. 291467 FOR ADDITIONAL DATA DA RECORD. HEAT TH CERTIFICATE SANITARY RESTRICTIONS AS REWIRED BY IDAIC COOS TIRE 54 CHAPTER 13 HAVE BEEN SATISFIED BASED ON THE STATE OF IOAC, OEPARD EM OF eMR011/ENTAL OUPUTY (TIED) APPROVAL OF THE DESIGN PUNS AND SPECIFICATIONS AND THE CONDO TAS NPOSED ON DIE DEVUOOPFR FOR CONTINUED SATISFACTION OF THE SANITARY RESTRICTIONS. BUYER IS CAUTIONED THAT AT THE TB( or This APPRO/AL NO ORINKKG WATER OR SEWER/SEPTIC FACILITIES WERE CONSTRUCTED. BURDNG CONSRM:OON CAN BE ALLOWED WTRI APPROPRIATE BUILDING PERMITS IF DIMMING WATER OR SEWER PALMS Mr SINCE BEEN CONSTRUCTED OR IF THE OEVEU3PER 5 SONATAIEOOSLY CONSTRICTING THOSE FAWAIES. E THE DEVELOPER FADS TO CONSTRUCT FACILITIES OR MEET THE Me CONDITIONS OF DEG, THEN SAMMY REM/GLANS MY BE REWPOSED, IN ACCORDANCE WITH SECTION 50-1325, &HO CODE BY THE ISSUANCE OF ACE MATE OF DISAPPROVAL AND NO CONSTRUCTION OF ANY BUILDING OR SNELTEIR REWIRING CAWING WATER OR SEWER/SEPTIC FACIUTIES SNAIL BE AILDRED. DISTRICT HEALTH of:NamEM ENS DATE: GREYSTONE ON PAYETTE, L.L.C. DEVELOPER BOISE, IDAHO BRIGGS ENGINEERING, INC. CONSULTING ENGINEERS BOISE, IDAHO SHEET 1 OF 2 ,W W-NTJAC (]N 07/10N6 Valley County Assessor's Office • P.O. Box 1350 • 219 N. Main Street Cascade, Idaho 83611-1350 Phone (208) 382-7126 • Fax (208) 382-7107 KAR,EN CAMPBELL Assessor kcampbell@co.ualley.id.us CITY OF MCCALL 216 E PARK STREET MCCALL ID 83638 Department of Motor Vehicles Phone (208) 382-7141 • Fax (208) 382-7107 GREYSTONE VILLAGE NO. 3 LOT 3 BLOCK 3 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- ation can only be achieved with your cooperation. Your assistance in furnishing the needed information on the en- closed questionaire will be greatly appreciated. Sincerely, Karen Campb, Valley County Assessor encl. DEEDEE GOSSI Chief Deputy Assessor kgossi@co.ualley.id.us RPM05750030030I 12/ 1 �/2006 INSTRUMENT# 313567 SALES VERIFICATION Type Location 7000 Cama Area# 1 DATE: ( - I ? - D7 Sever: Buyer: Address: GREYSTONE VILLAGE, LLC CITY OF MCCALL 216 E PARK STREET MCCALL ID 83638 Property Address: 1. Total sale price $ 2. Down payment $ Financing (X): 3. If furniture, fixtures, Value $ Legal Description GREYSTONE VILLAGE NO. 3 LOT 3 BLOCK 3 at Ft _t_01 � Qt- t-r of a- at, (Please complete if blank) Loan amount $ Conventional _VA _FHA _Cash _Private etc. were included in total price, please estimate the value and list the items included: Items: Date of s p: Month 84,0- Year 9M-0-tP Interest rate % Years IHA Other: 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:(. zuvAA ‘„ t (ti 4vv e Ppidt) Yn e.. c) 1i \J WORK PHONE: ( ao `6.) G, - HOME PHONE: RPM05750030030I Rev 1 /02