HomeMy Public PortalAbout2007.12.31 Original Lease and Extension Mile High Marina LEASE EXTENSION
THIS EXTENSION TO LEASE is made and executed on this '1 day of
.i cp,m IdP,1'" , 2007,by and between the City of McCall, Idaho, an Idaho municipal
corporation and government subdivision of the State of Idaho, organized and existing by virtue
of the laws of the State of Idaho,hereinafter referred to as"Lessor", and Mile High Marina,
LLC,an Idaho Limited Liability Company,hereinafter referred to as "Lessee", for and in
consideration of the mutual premises herein contained.
WITNESSETH:
WHEREAS, Lessor is the current Lessor under that certain Lease (hereinafter referred to
as "Lease") dated May 12, 2005, and executed by Lessee where under,the Lessor leases to
Lessee,and Lessee leases from Lessor,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 to the original Lease as Exhibit"A". For informational
purposes,the Leased Premises consist of improved and unimproved real property adjacent to
lands leased by Lessee under a State of Idaho Department of Lands Lease ("Submerged Land
Lease").
WHEREAS,the Parties acknowledge that Lessee exercised the option to extend the term of the
Submerged Land Lease from January 1, 2008 through December 31, 2017; and
WHEREAS,the term of this Lease is to be coincident with the term of the Submerged
Land Lease as extended from time to time.
Lease Extension- 1
NOW THEREFORE,the parties agree as follows:
1. "Lessor" and"Lessee"hereby mutually agree,pursuant to the Lease under 2.
Lease Term A.,to extend the term of said Lease for an additional period of ten(10)years,to-wit:
from January 1,2008 to December 31, 2017. Consistent with the terms and conditions of the
Submerged Land Lease, Lessor grants to Lessee the option to renew this Lease for an additional
ten(10)year term commencing upon the expiration of the original Lease or subsequent Leases.
Lessee understands and agrees that the Lessor, at its discretion,may choose to renegotiate the
terms and conditions offered in any renewed lease and the Lessee understands and agrees that the
terms and conditions in a renewed lease may be different than this lease.
2. "Lessor" and"Lessee"hereby agree that the rent during the extended term shall
be as follows: The annual gross rent shall be a percentage of the annual gross boat slip rental
receipts charged and collected by Lessee. The annual gross rent shall be determined by
multiplying the total gross receipts for boat slip rental by four percent(4%). For example,if the
gross annual receipts for rent of boat slips is$250,000,the rent would be$10,00 (i.e., $250,000 x
.04=$10,000). The rent shall be paid on December 1 of each year commencing December 1,
2008, 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 together with Lessee's calculation of annual rent as set forth
above.
3. Other than replacing the existing breakwater with a breakwater of similar size and
dimension, any future additions or expansions of the marina or related structures and
improvements thereon must be approved in advance by the McCall City Council,which approval
will not be unreasonably withheld. Conditions of approval by the Council for the additions or
Lease Extension-2
expansion will be reasonably related to the impact of the addition or expansion will have upon
Legacy Park and may include reasonable public access.
4. In all other respects the Lease is confirmed and is not changed or affected, except
as hereinbefore set forth.
IN WITNESS WHEREOF,the parties hereto have executed this Lease Extension the day
and year first above written.
CITY OF McCALL,a Municipal Corporation
"LESSOR"
i Liam A. Robertson,May
Lease Extension-3
ATTEST:
Fred Quie , cting City C erk
MILE HIGH MARINA,LLC,
an Idaho Limited Liability Company
"LESSEE"
By=
Jame G. Gerblic , ber
By:
William D.Fairfield,Member
STATE OF IDAHO, )
: ss:
County of Valley, )
On this 31 day of he.c _ , 2Q,OQ7,w e o ei}ne e undersigned, a Notary
Public in and for said State,personally appearedFi am A.RnarVion and Fred Quiel,known or
identified to me to be the Mayor and Acting City Clerk of the City of McCall,whose names are
subscribed to the within instrument, and acknowledged to me that they executed the same on
behalf of said City.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
day and year first above written.
0eaa®aen¢aaa000 ��k�J����L �-y l� 61(
SEAL ° '°° `� K O�` ° Notary Publid for Idaho
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Lease Extension-4
STATE OF IDAHO, )
: ss:
County of Valley, )
On this 0 day of •eYI1:16_, ,2007,before me,the undersigned,a Notary
Public in and for said State,personally appeared James G.Gerblick and William D.Fairfield,
known or identified to me to be Members of Mile High Marina,LLC,whose names are
subscribed to the within instrument,and acknowledged to me that they executed the same on
behalf of said limited liability company.
IN WITNESS WHEREOF,I have hereunto set my hand and affixed my official seal the
day and year first above written.
ID
(SEAL) 41OHNSp4ti, o .',V , for Idah ~
A+e•""" My Commission Expires: $
ems• —I'l l
CI
s 'M� ri
12/14/200f 01:42 2086342952 LAKEPORT MANAGEMENT PAGE 01/01
ATTEST:
Fred Quid,Acting City Clerk __
MILE HIGH MARINA,LLC,
an Idaho Limited Liability Company
"LESSEE"
By:,
James G.Ger lic ember
By:
William D.T i Id,Member
STATE OF IDAHO, )
: ss:
County of Valley, )
On this day of ,2007,before me,the undersigned,allotary
Public in and for said State,personally appeared William A.Robertson and Fred Quid,known or
identified to me to be the Mayor and Acting City Clerk of the City of McCall,whose names are
subscribed to the within instrument,and acknowledged to me that they executed the same on
behalf of said City.
IN WITNESS WHEREOF,I have hereunto set my hand and affixed my official seal the
day and year first above written.
(SEAL) Notary Public for Idaho
My Commission Expires:
Lease Extension-4
12/14/2007 00:24 2086342952 LAKEPORT MANAGEMENT PAGE 02/02
C t/ i/4-
STATE OP-fH>' l )
SS:
County of tt3f1' ,
On this / day of Pi a007,before me,the undersigned,a Notary
Public in and for said State,personally appeared James-EireetViEk and William D.Fairfield,
known or identified to me to be Members of Mile High Marina,LLC,whose names are
subscribed to the within instrument,and acknowledged to me that they executed the same on
behalf of said limited liability company.
IN WITNESS WHEREOF,J have hereunto set my hand and affixed my official seal the
day and year first above written.
(SEAL) Notary Pubh �r Idaho
My Commis n Expires: f / doo f
1ti,..�, MARILYN J. FULTHORPE
.e Commission # 1731037
I Notary
PublicCalifornia
Venturaa County
My Comm._ !OrExpkesApr12.21_1_t
LEASE
This Lease,is entered into this j` " 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 free 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 EIMER , ayor ES G. LICK, ember
(32)Attest: , -L __.�- By:
Dan Irwin, City Clerk WILLIA . FAIRFIELD, Member
Mile High Marina LLC I ease Agreement
Exhibit A
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Exhibit B
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Mile High Marina J.J I I
ease Agreement
Exhibit B
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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.
Currently, 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: May 31, 2005
Phase Two (2):
Estimated Date of Completion: October 31, 2005
Phase Three (3):
Estimated Date of Completion: May 31, 2006
Mile High Marina LLC Lease Agreement
Exhibit C
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