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HomeMy Public PortalAboutResolution 05-05 Mile High Marina LeaseRESOLUTION NO. 05-05 A RESOLUTION OF THE CITY OF McCALL, IDAHO, AUTHORIZING AND APPROVING A LEASE AGREEMENT WITH MILE HIGH MARINA, LLC.; AUTHORIZING THE CITY COUNCIL PRESIDENT TO EXECUTE SUCH AGREEMENT ON BEHALF OF THE CITY; PROVIDING FOR RELATED MATTERS; AND, PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of McCall is authorized to lease real and personal property as provided in Section 50-1407, Idaho Code; and WHEREAS, the City of McCall desires to lease real property commonly known as the "Marina" property to Mile High Marina, LLC. BE IT RESOLVED BY THE CITY COUNCIL PRESIDENT AND CITY COUNCIL OF THE CITY OF McCALL, Valley County, Idaho, as follows: Section 1: The City Council hereby finds and declares that the real property commonly known as the "Marina," more specifically described in Exhibit "A," which attached hereto and by this reference fully incorporated herein, is not otherwise needed for City purposes. Section 2: The City Council hereby finds and declares that the terms of the Lease Agreement, substantially in the form attached hereto as Exhibit "A," are just and equitable. Section 3: The Lease Agreement with Mile High Marina LLC. substantially in the form of the Lease Agreement attached hereto as Exhibit "A" is hereby approved. Section 4: That the City Council President is hereby authorized to execute the Lease Agreement on behalf of the City. Section 5: approval. This Resolution shall take effect and be in force from and after its passage and DATED this i 7*v'' day of May, 2005. ATTEST: CITY OF MCCALL Valley County, Idaho a axanc tamers, lviayor ~t~ c.._.__~2-~ Dan Irwin, City Clerk LEASE This Lease, is entered into this __ day of May 2005, by and between the City of McCall, Idaho, a Municipal Corporation, hereinafter called ("Lessor"), and Mile High Marina, LLC, an Idaho Limited Liability Company, hereinafter called ("Lessee"). 1. Lessor hereby leases to Lessee the following described real property, to wit: The west boundary of Lakeshore Boulevard, being the high water mark of Big Payette Lake between the extension of the north boundary line of lot 5, block 4, McCall, first addition to the Village of McCall, Idaho, as extended westerly to the high water mark of Big Payette Lake and the south boundary line of lot 1 of said block 4, extended westerly to the west boundary line of said Big Payette Lake (the "Leased Premises"). A map of the Leased Premises is attached hereto as Exhibit "A" and incorporated herein by reference. For informational purposes, the Leased Premises consist of improved and unimproved real property adjacent to lands leased by Lessee under the State of Idaho Department of Lands Lease. 2. Lease Term. A. The term of this Lease shall be coincident with the term of the Submerged Lands Lease from the Idaho Department of Lands for the Marina Lease assumed by Lessee on February 23, 2005 as said Submerged Lands Lease is extended from time to time. For informational purposes, the Submerged Lands Lease continues until the close of business December 31, 2007. A copy of the Submerged Lands Lease is attached as Exhibit "B" and incorporated herein by reference. The parties to this Lease may mutually agree to extend this Lease for an additional period of ten (10) years. This Lease may be terminated upon written agreement of the parties. B. If Lessee defaults in any of Lessee's insurance obligations described in Section 5 of this Lease, Lessor at its option and in addition to all other legal and equitable remedies, may declare this Lease forfeited and terminate the Lease upon written notice to Lessee. Upon such termination, all rights of Lessee under this Lease shall immediately terminate. C. If Lessee defaults in any other of its obligations under this Lease, Lessor shall provide written notice of default to Lessee. If said default is not cured by Lessee to the satisfaction of Lessor within sixty (60) days, Lessor shall have the right to immediately terminate this Lease upon written notice to Lessee. Upon such termination, all rights of Lessee under this Lease shall immediately terminate. 3. Use. A. In addition to the uses described in the Submerged Lands Lease, the Leased Premises are to be used by Lessee for parking and displaying recreation equipment that is for sale and lease by Lessee. The parties to this Lease may agree to other uses of the Leased Premises upon written agreement of the parties. Lessee's use is subject to Lessee being in compliance with all federal, state, and municipal laws, including, tenants "plans", now or in the future, to alter, improve, change, maintain and repair the current building, docks, decks, etc. as Lessee deems necessary; provided said changes, alterations, and additions do not conflict with existing federal, state, and/or municipal laws/ordinances. B. Lessee shall at all times maintain all buildings, docks and other appurtenances related to Lessee's marina business in a safe and functional condition. Lessee shall immediately repair, replace or remove docks and other structures in accordance with the schedule attached hereto as Exhibit C, and by this reference fully incorporated herein. The improvements described in Exhibit C are hereby approved by the Lessor. C. Any and all changes to the Leased Premises must be approved by the Lessor in writing before Lessee may make any changes. Any additional alterations, changes, or additions to the Leased Premises or to current buildings, docks, and other appurtenances must be in compliance with all applicable federal, state, and municipal laws. 4. Rent. The annual gross rent shall be a portion of the annual gross boat slip rental receipts charged and collected by Lessee. The annual gross rent shall be determined by dividing the total gross receipts for boat slip rental, divided by the number of boat slips, multiplied by 3. The current number of boat slips is 180. For example, if the gross annual receipts for rent of boat slips is $200,000, and the current number of slips available for rental during 2005, (i.e., 180 slips in calendar year 2005) the rent for 2005 would be $3,333 (i.e., $200,000 / 180 = $1,111.11 x 3 = $3,333.33). The annual rent will be adjusted by the actual number of boat slips available for rental each season. The rent shall be paid on December 1 of each year commencing December 1, 2005, and on the same date of each consecutive year thereafter during the term of this lease, as extended. The rental payment shall be accompanied by a certificate representing the gross annual rental receipts for boat slips only together with Lessee's calculation of annual rent using a numerator of 3 and a denominator representing the total number of boat slips available for rental during each calendar year. 5. Lessee's Insurance requirements; Limitation of Lessor's Liability; Indemnification. As an essential part of the consideration to induce Lessor to enter into this Lease; Lessee agrees as follows: A. This Lease is made on the express condition that Lessee shall, at Lessee's sole expense, maintain at all times during the term and any renewals of this Lease adequate property, general liability, auto liability and worker's compensation and employer liability insurance coverage each with limits of no less than one million dollars, naming Lessor as an additional insured or loss payee, as appropriate, and covering among other things, all boats and other property using the Leased Premises, by Lessee for itself and for its clients. Lessor shall not be responsible for security, theft, vandalism or damage, if any, to such property caused by fire, water, structural collapse or failure or from any cause whatsoever. Lessor shall have the right at any time to inspect the Leased Premises for the purpose of inspecting the condition of the Leased Premises and for any other purpose consistent with the terms of this Lease. B. This Lease is made on the express condition that Lessor shall be flee from all liability and claims for damage by reason of injuries of any kind to any persons, including Lessee, or any property of any kind, including the boats and other property of Lessee's clients, regardless of who owns the property, from any cause or causes while in, upon or in any way connected with the Leased Premises during the term of this Lease or any extension or renewal hereof. Lessee agrees to indemnify and hold Lessor harmless from any liability, loss, cost, obligation or claim on account of or arising out of any such injuries or losses, however occurring. 6. Taxes. Lessee hereby agrees to pay all taxes and assessments of every kind or nature levied or assessed against said Leased Premises during the term of this Lease. 7. Condition. Lessor shall have no duty to maintain during the term of this Lease, any part of the Leased Premises. In the event that repairs are required, Lessee shall immediately notify the Lessor and Lessor, shall determine, in Lessor's sole discretion, whether, when and how such repairs will be made, if at all. Any spills of petroleum, boat fuel, oil or any other substances during the term shall be fully cleaned up by Lessee, and Lessee shall be responsible for all remediation costs and other liabilities connected therewith. Lessee agrees to keep and maintain the Leased Premises in a condition as good as originally leased, ordinary wear and tear excepted. 8. Modification. This Lease shall not be modified or amended without the written consent of the parties. 9. Assignment/Sublease. Upon prior written permission of the Lessor, Lessee may assign, sublease or otherwise convey Lessee's leasehold interest in the Leased Premises or any portion thereof. 10. Binding Effect. The terms and conditions contained herein shall be binding upon and inure to the benefit of the parties and their successor and assigns. 11. Attorney's Fees. If any action is instituted to enforce any covenant contained in this Lease or to recover any rent due or to recover possession of the Leased Premises for any default or breach of this Lease by Lessee, then Lessee shall pay such reasonable attorney fees and costs to the Lessor as may be determined by the court. 12. Governing Law. It is agreed that this Lease shall be governed by, construed, and enforced in accordance with the laws of the State of Idaho. 13. Effect of Partial Invalidity. The invalidity of any part of this Lease will not and shall not be deemed to affect the validity of any other part. In the event that any provision of this Lease is held to be invalid, the parties agree that the remaining provisions shall be deemed to be in full force and effect as if they had been executed by both parties subsequent to the expungement of the invalid provision. 14. Waivers. Waiver by Lessor of any breach of any covenant or duty of Lessee under this Lease is not a waiver of a breach of any other covenant or duty of Lessee, or of any subsequent breach of the same covenant or duty. IN WITNESS WHEREOF, the parties hereto have executed this Lease on the effective day of __ May, 2005. LESSOR: LESSEE: CITY OF McCALL, a Municipal Corporation MILE HIGH MARINA, LLC, an Idaho Limited Liability Company By: By: KIRK EIMERS, Mayor JAMES G. GERBLICK, Member Attest: By: Dan Irwin, City Clerk WILLIAM D. FAIRFIELD, Member EXHIBIT A Mile High Marina LLC [ease Agreement Exhibit A ..1 SC~q L E : f"= lO0' SKETCH SHOWING PROPERTY LEASE TO THE SPORTS MARINA Situo¢[e ink,eminent Lot 2, City of McColt, V~ey Co., M. ~rch, t996 EXHIBIT B Mile High Marina LLC Lease Agreement Exhibit B Mile High Marina LLC Lease Agreement Exhibit B Mile High Marina LLC Lease Agreement Exhibit B Mile High Marina LLC Lease Agreement Exhibit B Mile High Marina LI_C Ixase Agreement Exhibit B Mile High Marina LLC Lease Agreement Exhibit B Mile High Marina LLC Lease Agreement Exhibit B Mile High Marina LLC Lease Agreement Exhibit C May 4, 2005 City of McCall City Manager: Lindley Kirkpatrick & Council Members 216 E. Park Street McCall, ID 83638 Re: Mile High Marina Construction schedule of docks Dear Mr. Kirkpatrick & Council Members, The management at Mile High marina is committed to replacing the entire dock system with an estimated total replacement value at $400,000.00. Cun'ently, we are under contract with Inland Marine Construction Inc. to replace the first phase of three (3) stages by May 31, 2005. Phase Two (2), is anticipated to be completed at the end of the 2005 season and the third phase is scheduled for completion by Memorial Day weekend 2006. Please refer to the attached schedule for more details. Regards, James G. Gerblick slj Mile High Marina LLC Lease Agreement Exhibit C SCHEDULE A Mile High Marina, LLC Dock construction time-line May 4, 2005 Phase One (1): Estimated Date of Completion: Phase Two (2): Estimated Date of Completion: Phase Three (3): Estimated Date of Completion: May 31, 2005 October 31, 2005 May 31, 2006 Mile High Marina LLC Lease Agreement Exhibit C