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
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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
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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