HomeMy Public PortalAbout10/93 Lease AgreementLEASE
This Lease ("Lease") is made October 15, 1993, by and between the City of
McCall, Idaho, an Idaho municipal corporation ("Lessor"), and Central Idaho Interpretive
Museum and Visitor Center, Inc., an Idaho nonprofit corporation ("Lessee"), for and in
consideration of the mutual covenants in this Lease.
1. Lessor leases to Lessee, and Lessee leases from Lessor, the real property
described on Exhibit "A" to this Lease (which real property including all
improvements thereon is called 'Property" in the rest of this Lease), which is
located within the City of McCall, Valley County, Idaho, and is the former
premises of the Southern Idaho Timber Protective Association, for the express
purpose of the creation, maintenance and operation of the Interpretive Museum
and Visitor Center, and on a "triple net" basis, that is, with all expenses of the
Property to be borne by Lessee.
2. This Lease is for a term commencing at 12:01 AM on November 1, 1993, and
ending at 11:59 PM, October 31, 2013, except as this Lease may be amended or
renewed from time to time in accord with this Lease. Lessor is in the process of
acquisition of legal title from the State of Idaho and has the right of possession; as
between Lessor and Lessee, Lessee is entitled to possession of and the income
from the Property immediately, but only according to the terms of this Lease.
3. For occupancy of the Property Lessee agrees to pay to Lessor, and Lessor agrees
to accept from Lessee, annual rent payments of $10.00, the receipt of which for
the first year is acknowledged. Payment shall be made on or before October 31,
1994 and on or before the same day of each year thereafter. Lessee admits that
possession of the Property at a rent which is far below fair market rental value is
the full, fair and complete investment of the City of McCall in the Interpretive
Museum and Visitor Center.
4. Unless otherwise directed by Lessor in writing, Lessee shall make all payments
due Lessor, on or before the due date and during normal business hours, at City
Hall, which is currently 216 East Park Street, McCall, Idaho, or at such other
location as may become City Hall in the future.
5. Lessee has examined and agrees to accept the Property in its present condition.
6. Lessee shall create, maintain and operate the Interpretive Museum and Visitor
Center on the Property in an orderly fashion using best efforts. Lessee
acknowledges being subject to the zoning and building codes, as the same may be
applicable to historical buildings. Lessee acknowledges that the State law
authorizes the City to create exceptions in the zoning and building codes for
historic buildings, but that the City has not yet done so.
7. The Property is listed on the National Register of Historic buildings and places,
and Lessee shall not make any changes on the Property inconsistent with that
status except in accord with City approval of designs for and site plans of
Property. Lessee shall not break ground, remove vegetation, or change the
exterior appearance of any building or grounds prior to obtaining such approval,
other than for normal maintenance repair of landscaping and exterior repainting
and the like without change of color.
8. Lessee shall be solely responsible for the maintenance of the Interpretive Museum
and Visitor Center and of Property,. Lessee at its expense will provide or see to
the provision of all services, utilities, labor, and materials needed for the Property,
and pay prior to delinquency all accounts for services, utilities, labor, and
materials supplied to the Property. Without limiting the generality of the
foregoing, Lessee will perform or see to the performance of the necessary
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Central Idaho Interpretive Museum and Visitor Center, Inc.
maintenance of the landscaping and the exterior of the buildings to their present
condition or better; buildings shall be maintained to ensure that they remain useful
and habitable, including maintenance of roofs, heating facilities, plumbing, and
wiring. If the public is invited onto Property, proper measures shall be taken for
public health and safety.
9. Lessor and Lessee both anticipate that no taxes will become owing to any
jurisdiction by Lessor or Lessee with respect to the Property or the Interpretive
Museum and Visitor Center. Should any such taxes become payable, they shall
be paid by Lessee prior to their becoming delinquent.
10. The Property will be used by Lessee solely for the Interpretive Museum and
Visitor Center, and for interim residential and office uses not inconsistent with
subsequent use for the Interpretive Museum and Visitor Center. If for any reason
Lessee determines that there is an appreciable risk that the Interpretive Museum
and Visitor Center cannot be brought into existence in a timely fashion, or once
existing cannot be continued, Lessee shall so notify the City in order that the
possibility of reverter to the state can be addressed.
11. Lessee shall provide and pay for insurance of Facility, in the amount of
replacement cost (for equivalent square footage of museum and visitor center
space), against fire, storm, and other casualties and contingencies. Lessor shall
prohibit the storage of liquid fuels, other combustibles, hazardous materials, and
toxic materials within the Property, and include such prohibition in all rental
agreements and subleases with Subtenants.
12. Lessor will maintain public liability insurance against personal injury and
property damage on Property, under the Lessor's insurance policies in force with
respect to other real property belonging to Lessor, Lessor will seek fire and
extended coverage insurance on the buildings on Property; Lessee will reimburse
Lessor within thirty days after demand for the same, for any incremental premium
paid by Lessor above premiums payable if Lessor did not provide any insurance
with reference to Property. Lessee will be responsible to obtain and to pay for any
insurance carried on contents of the buildings.
13. Lessee will comply with all ordinances, regulations, and laws affecting the
Property or its use, and will not use nor permit the Property to be used for any
unlawful purpose.
14. Lessee will not erect on the Property signs, poles, lights, nor advertising devices,
without prior written approval of Lessor, nor without the appropriate permits for
which fees shall be paid.
15. Lessee will furnish evidence of payment of withholding taxes for income tax for the
United States and for the State of Idaho, social security (FICA and Medicare) taxes,
unemployment insurance taxes, and any other withholding required by law, and
workers' compensation, at the end of each quarter of each year during the term of
this Lease. Lessee shall pay all personal property taxes (if any) on Lessee's
personal property on the Property, and all sales taxes resulting from Lessee's
operations on the Property. Lessee will pay real property taxes, special
assessments, or other taxes with respect to Property, if any.
16. Lessee will not permit any materialman's, mechanic's, laborer's, or other lien of any
nature to attach to the Property or to Facility.
17. Upon termination or expiration of this Lease or any extension thereof, fixtures and
improvements on the Property shall be dealt with as follows:
A. Whether or not the property is to continue to be a museum, buildings and other
permanent improvements shall remain or shall become property of the Lessor.
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B. If the property is to continue to be used as a museum, fixtures and displays
which belong to Lessee shall become the property of Lessor.
C. If the property is not to continue to be used as a museum, Lessee shall have
180 days from termination to arrange for transfer of fixtures and displays to
another museum.
D. Nothing in this paragraph is meant to apply to displays or items which are
on loan to Lessee, which material shall be dealt with as resolved between
Lessor and the owners thereof.
18. If Lessee defaults in payment of rents specified herein after thirty days written
notice of delinquency, or fails to do any other act required by this Lease, Lessor has
the option of terminating this Lease, re-entering the Property, and removing all
persons and property from the Property. Lessor has the option of doing any such
act at Lessee's expense, and charging such expenses to Lessee. Termination in no
way relieves Lessee from responsibility for loss of rents by Lessor because of
termination, or any other liability under this Lease. Upon re-entering the Property,
Lessor may succeed to the benefit of and take over as direct lessor some or all of
Lessee's contracts with Subtenants.
19. Lessee agrees to indemnify and to save Lessor and hold Lessor harmless against
any loss or liability for injury or damage to person or property occurring on the
Property or property adjacent to Property during the term of this Lease from any
cause whatsoever, including without limitation the negligent acts or omissions of
Lessor, its agents, employees, or public invitees.
20. Lessee will not assign this Lease, without the prior written consent of Lessor, which
consent shall not be unreasonably withheld. Any such assignment will be void
without such consent. Lessee will not sublet the property or any part thereof, except
that with prior notice to Lessor, Lessee may sublet ground floor office space in the
former SITPA office building to nonprofit organizations and government agencies.
The creation of a genuine risk of reversion of title to the State is a sufficient reason
to withhold consent, for example. For the first five years of the term of this Lease
as the Interpretive Museum and Visitor Center is being created and organized,
Lessee shall be entitled to rent any space on the Property occupied during 1992 as
the -.lien occupants' full-time residence without each rental arrangement needing to
be approved by the City.
21. Lessee at its option upon giving Lessor written notice not less than 180 days before
the end of the term of this Lease, may renew this Lease, subject to all of its terms and
conditions, for an additional term of 20 years; in turn, Lessee at its option upon giving
Lessor written notice not less than 180 days before the end of that extended term of
this Lease, may renew this Lease, subject to all of its terms and conditions, for a
second additional term of 20 years; for a total of 60 years. Upon the occasion of any
such renewal and prior to its becoming effective, Lessor and Lessee shall meet to
determine the rental to be paid by Lessee to Lessor in the light of the then prevailing
market practices, the then amortized and unamortized investment of Lessee, and the
then current cost to the City of the administration of this Lease. At the end of such 60
years, should the Lease have been renewed thus far, Lessor and Lessee shall enter
into a new lease upon substantial equal terms to this Lease given the then current laws
and customs; provided, that if at that time the Interpretive Museum and Visitor Center
is a functioning facility meeting its intended purposes and uses, the Interpretive
Museum and Visitor Center is entitled to continue in existence without material, new
economic obligations being imposed on either party.
22. If any legal action or proceeding related to this Lease is begun by any party to this
Lease, the prevailing party shall be entitled to recover its commercially reasonable
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attorneys fees and witness and expert witness fees, incurred in prosecuting or
defending the same. The Lessor shall be entitled to such fees, if the prevailing
party, notwithstanding the fact that the City Attorney is salaried.
23. This Lease is governed by the law of Idaho, and Valley County, Idaho is the
proper venue.
24. Time is of the essence with respect to the obligations of the parties under this
Lease.
25. Any rights and remedies stated in this Lease are cumulative.
26. The neglect of any party to enforce its rights at any particular times or upon any
particular occurrences shall not preclude resort to those rights at any other time or
with respect to any other occurrences. Any waiver of any right must be done in a
writing executed by the party to be charged with such waiver, and executed with
no fewer or different formalities and approvals than were attendant upon
execution of this Lease.
27. This Lease shall bind and inure to the benefit of the parties and their respective
heirs, successors and assigns.
28. This Lease constitutes the entire agreement between and among the parties as to the
matter set out in it, and all prior negotiations and discussions, memoranda,
correspondence, and communications are merged into and extinguished by this
Lease.
29. The parties to this Agreement shall accept notices at the following addresses and
telephone numbers:
Lessee
Central Idaho Interpretive Museum and
Visitor Center, Inc.
Box
McCa11, ID 83638
DATED: //— /6 —fr.—
A ttes
Ines H. Henderson
City Clerk
Lessor
City of McCall
Attn. City Clerk
P. O. Box 1065
McCa11, ID 83638
CITY OF McCALL
Lessor
by:
Dean A. Martens,
Mayor
Central Idaho Interpretive Museum and
Visitor Center, Inc.
Secretary
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State of Idaho )
) ss.
County of Valley )
On this day of June, in the year 1995, before me,
notary public, personally appeared Dean A. Martens, known or identified
to me to be the Mayor of the City of McCall that executed the said instrument, and
acknowledged to me that such City of McCall executed the same.
Notary Public for Idaho
My commission expires:
State of Idaho )
) ss.
County of Valley )
On this I I `14\ day of 181rt"1b'; in the year 1e 95, before me, �p �.t' t ittJ-4, -ixc�
, notary public, personally appeared �. - S111 1, fk JP- , known or
identified to me to be the president, or vice-president, or secretary or assistant secretary,
of the corporation that executed the instrument or the person who executed the instrument
on behalf of said corporation, and acknowledged to me that such corporation executed the
same. •
�0 i„, ST'41 �
? � •• r pT AR Y •• ,•� : Notary Public for Idaho La�'d'F-
4C ; �. S - ? My commission expires: 7- -6/
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