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HomeMy Public PortalAbout2005.04 Lakeport Mgmt - Proposed LeaseLAKEPORT MANAGEMENT P.O. Box 927 • McCall, ID 83638 Telephone: (208) 634-2900 Fax: (208) 634-2952 City of McCall Attn: Dan Irwin 216 E. Park Street McCall, ID 83638 Dear Dan, April 22, 2005 Sorry I did not get back to you earlier. Although I know the current lease has not terminated, we (Jim & I) did agree to enter into a new lease with the City of McCall that we have signed in triplicate and is enclosed. I realize the City and its attorneys may want additional clauses and we will certainly cooperate. Our objective is to get an approved lease as soon as possible so that we can open the Marina by May 15, 2005. Would you please do whatever is necessary to obtain city council approval as soon as possible? We appreciate your help and advice. Please call me if you have questions or comments. ill Fairfi Lakeporl�Management slj A‘ oQ °%i L c„ LEASE This Lease, is entered into this day of Apri12005, by and between, the City of McCall, a Municipal Cmporation, 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 ofBig Payette Luke 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 Fayette Lake and the south boundary line of lot 1 of said block 4, extended westerly to the west boundary line of said Big Payette bake. A tmap of said: location is attached hereto as Exhibit A and incorporated herein by reference. For informational purposes, the leased area ("Premises") consists of improved and unimproved real property adjacent to the Idaho Department of Lands Lease to I.essee. 2. The term ofthis Lea= shall be the greater of twenty-five (25) years or coincident with the term of the Lease from the Idaho Department of Lands for the Marina Lease assumed by Lessee on February 23, 2005 as said Lease is extended from time to time. For informational purposes, the current Lease continues until the close of business December 31, 2007 and thereafter, Lessee has the right to extend said Marina Lease for an additional period of ten (10) years. 3. Use. In addition to the uses described in the Marina Lease, the Pi tsmises is to be used for paddng equipment display and other uses agreed to, from time to time by :Lessor and Lessee, Lessee's use is subject to Lessee being in compliance with all federal, state, and mumicipal laws, including, tenants "plans", now or in the future, to alter, improve, change, maintain and repair the cummt building, docks, decks, etc. as Lessee deems necessary; provided said changes, alterations, additions, do not conflict with existing federal, state, and/or municipal laws/orreinances. 4. Rent. The annual gross rent shall be a portion of the annual grows boat slip rental receipts, the numerator being 3 and the denominator currently being 180. The r rated 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 team 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. 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 R $1,111.11 x 3 ^ $3,333.33). The annual rent will be adjusted by the acNW number of'boat slips available for rental each season. 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 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 Premises for the purpose of inspecting the condition of the 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 ofwho owns the property, from any cause or causes while in, upon or in any way connected with the 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. Lessor hereby agrees to pay all taxes and assessments of every kind or nature levied or assessed against said Premises during the term of this Lease, except that any personal property taxes or other taxes related to the personal property of Lessee or its clients or Lessee's operations on or off the Premises shall be the sole responsibility of Lessee. 7. Condition. Lessor shall have no duty to maintain during the term of this Lease, any part of the 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 or other liabilities connected therewith. Lessee agrees to keep and maintain the Premises in a condition as good as originally leased, ordinary wear and tear, damage by wind storm, or other acts of God excepted. 8. Modification. This Lease shall not be modified or amended without the written consent of the parties. 9. Assignment/Sublease. Lessee shall have the right to assign, sublease or otherwise convey Lessee's leasehold interest in the 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 Premises for any default or breach of this Lease by Lessee, then Lessee shall pay such reasonable attorney fees 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 April, 2005. LESSOR: LESSEE: CITY OF McCALL, a Municipal Corporation MILE HIGH MARINA, LLC, an Idaho Limited Liability Company By: Name: By: By: SCALE:1"=100' prepared by Kerr Surveying Box 853 McCall, ID 83638 208-634-2686 = 3 . W W � Y J S 8125' E 10.37 I M n 3 8 14.63' N 857315' W F c d Q SKETCH SHOWING PROPERTY LEASE TO THE SPORTS MARINA Situate in Government Lot 2, Section 9, T. 18 N., R. 3 E., B.M., City of McCall, Valley Co., Id. March, 1996 LEASE This Lease, is entered into this day of April 2005, by and between the City of McCall, 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 Vi llage 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. .A. map of said location is attached hereto as Exhibit A and incorporated herein by reference. For informational purposes, the leased area ("Premises") consists of improved and unimproved real property adjacent to the Idaho Department of Lands Lease to Lessee. 2. The term of this Lease shall be the greater of twenty-five (25) years or coincident with the term of the Lease from the Idaho Department of Lands for the Marina Lease assumed by Lessee on February 23, 2005 as said Lease is extended from time to time. For informational purposes, the current Lease continues until the close of business December 31, 2007 and thereafter, Lessee has the right to extend said Marina Lease for an additional period of ten (10) years. 3. Use. In addition to the uses described in the Marina Lease, the Premises is to be used for parking equipment display and other uses agreed to, from time to time by Lessor and Lesssee. 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, additions, do not conflict with existing federal, state, and/or municipal laws/ordinances. 4. Rent. The annual gross rent shall be a portion of the annual gross boat slip rental receipts, the numerator being 3 and the denominator currently being 180. The rental 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. 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. 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 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 Premises for the purpose of inspecting the condition of the 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 ofwho owns the property, from any cause or causes while in, upon or in any way connected with the 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. Lessor hereby agrees to pay all taxes and assessments of every kind or nature levied or assessed against said Premises during the term of this Lease, except that any personal property taxes or other taxes related to the personal property of Lessee or its clients or Lessee's operations on or off the Premises shall be the sole responsibility of Lessee. 7. Condition. Lessor shall have no duty to maintain during the term of this Lease, any part of the 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 or other liabilities connected therewith. Lessee agrees to keep and maintain the Premises in a condition as good as originally leased, ordinary wear and tear, damage by wind storm, or other acts of God excepted. 8. Modification. This Lease shall not be modified or amended without the written consent of the parties. 9. Assignment/Sublease. Lessee shall have the right to assign, sublease or otherwise convey Lessee's leasehold interest in the Premises or any portion thereof Name: 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 Premises for any default or breach of this Lease by Lessee, then Lessee shall pay such reasonable attorney fees 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 April, 2005. LESSOR: LESSEE: CITY OF McCALL, a Municipal Corporation MILE HIGH MARINA, LLC, an Idaho Limited Liability Company By: By: J - 1?► CK, Memb By: LIAM AIRFIELD, Member i L SCALE:1"=100' prepared by Kerr Surveying Box 853 McCall, ID 83638 208-634-2686 -10 -o Q SKETCH SHOWING PROPERTY LEASE TO THE SPORTS MARINA Situate in Government Lot 2, Section 9, T. 18 N., R. 3 E., B.M., City of McCall, Valley Co., Id. March, 1996