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Home My Public Portal AboutResolutions_22-29_7/19/2022 RESOLUTION NO.22-29 RESOLUTION APPROVING LEASE AGREEMENT CONCERNING THE MARCUS GOLF COURSE WHEREAS, the City Council and the Marcus Community Golf Club, Inc. have determined a course of action to ensure the long-standing availability of a golf course to the Marcus community; and WHEREAS, in determining the best course of action the council has accepted ownership of the real estate acknowledging the need to have it managed; WHEREAS, the Marcus Community Golf Club, Inc. has managed the golf course well since 1962 and is uniquely positioned to do so in an ongoing manner; WHEREAS, a resolution by the City Council is required in order for the City of Marcus, Iowa to execute a lease agreement. NOW, THEREFORE, BE IT RESOLVED,the City Council of the City of Marcus Iowa hereby authorizes the approval of the lease agreement attached hereto for the following described real estate from the Marcus Community Golf Club, Inc. for$1.00 pursuant to the terms and conditions therein: A tract of land in the S1/2 SE1/4 of Section 4,Township 92 North,Range 42 West of the 5th P.M.,more completely described as follows: Commencing at the south quarter corner of said Sec.4; thence north 0°21' east along the south quarter line of said Sec.4 sixty feet to a point on the north right-of-way line of Iowa State Highways 3 and 5,being the point of beginning; thence north 0°21' east along the south quarter line of said Sec.41,266.4 feet to a point on the south eighth line of said Sec.4; thence north 89°30' east along the south eighth line of said Sec.4 2,609.3 feet to a point on the west right-of-way line of Iowa State Highway 143; thence due south along the west right-of-way line of Iowa State Highway 143 parallel to and 50 feet west of the east line of said Sec.4 310.0 feet; thence south 79° 27'; west 597.0 feet; thence south 28° 12' west 372.0 feet; thence south 19° 14' west 564.5 feet to a point on the north right-of-way line of Iowa State Highways 3 and 5; thence south 89°42' west along the north right-of way line of Iowa State Highways 3 and 5,parallel to and 60.0 feet north of the south line of said Sec.41,668.3 feet to the point of beginning,containing 60.0 acres,more or less. The east line of said Sec.4 is assumed to run due south; PASSED AND APPROVED this day of ne.. ,2022. Patric J. Bunt,May r r j • I ATTEST: /y - Utt/i4k, 4-AlUIYAir City Clerk-Treasurer ENCLOSURE: Lease Agreement LEASE AGREEMENT THIS LEASE AGREEMENT("Lease") is entered into this dayof June,2022,by and between CITY OF MARCUS,IOWA("Landlord") and MARCUS COMMUNITY GOLF CLUB,INC ("Tenant"). PREAMBLE: A. Landlord is the owner of that certain real estate located in Cherokee County,Iowa legally described on Exhibit"A" attached hereto and made a part hereof by this reference(the"Land") and all improvements located thereon(the"Improvements" and collectively with the Land,the"Property"); B. Tenant has operated,built and maintained recreational facilities on the Land since 1962 pursuant to various lease agreements with the City of Marcus pertaining to the Land.The Improvements were constructed and maintained by Tenant at Tenant's expense and were recently transferred to the City of Marcus in consideration of this Lease; C Operation of the Property as a golf course has provided a valuable public service to the City of Marcus and enhanced the quality of the life of the residents of the City by providing recreation and meeting facilities to members of Tenant and non-members alike and his help to attract and maintain residents and businesses in the City; D. Whereas,the parties agree that it is in the best interests of both Landlord and Tenant that the Improvements have been transferred to the City and that Tenant continue operation of the Improvements for the benefit of Tenant's members and for the benefit of the public under the terms and conditions outlined in this Lease. LEASE AGREEMENT: Nowtherefore,in consideration of the foregoing and the mutual promises set forth herein,Landlord does hereby lease to Tenant the Property to have and to hold the same from the 1st day of June,2022,to the 30th day of May,2023 (collectivelywith any extensions,the"Term") on the following terms and conditions: 1. RENT: Tenant shall pay rent in the amount of$4,800.00 each year. However,rent shall not be due nor accrue until May 1,2023. 2. RENEWAL: Unless either party gives notice of intent not to renew this Lease to the other at least 30 days before the expiration of the Term of this Lease, this Lease shall automatically renew for one (1) additional year. 3. USE: Tenant shall use and develop the Propertyas a golf course and may conduct thereon all the lawful activities associated with such a use,including hosting of social,business,golf and community events, but for no other purpose.Notwithstanding anything to the contrary herein,Tenant shall use the Property for public use and not for pecuniary profit such that the Property q»alifies for tax exempt status pursuant to Iowa Code§427.1(2).Tenant shall have the right to erect and maintain fixtures and improvements on the Land provided such fixtures and improvement are reasonablyassociated with the above activities at Tenant's sole cost and expense. 4. MAINTENANCE: Tenant,at Tenant's sole cost and expense,shall maintain the Property in good repair.Landlord may,at the discretion of the CityPublic Works Superintendent,assist with improvements for City benefit on the Propertybyuse of special City equipment,not otherwise readily available.City shall provide snow removal.No maintenance shall compete with other simultaneous City needs. 1 5. UTILITIES:Tenant at Tenant's sole cost and expense,shall pay for all utilities consumed on the Property.Landlord reserves the right to install and maintain utility lines and related structures upon the Property.Any utilities installed on the Property for the direct benefit of Tenant shall be at Tenant's expense. Landlord shall bring any such utilities to the Property line at no additional cost to Tenant. 6. INSURANCE: Both parties shall keep in force and effect propertyand public liability insurance protecting their respective interests as Landlord and Tenant. 7. REAL ESTATE TAXES.Landlord has applied or will apply to have the Property declared exempt from real estate taxes pursuant to Iowa Code 5 427.1(2).In addition,Landlord has or will seek abatement of real estate which maybe assessed against the Property;but not yet paid including but not limited to the real estate taxes for fiscal year 2021-2022(payable in September 2022 and March of 2023). To the extent that such exemptions or abatements are not granted,Tenant shall pay all real estate taxes that are assessed against the Property prior to or during the Term of this Lease. 8. TERMINATION FOR CAUSE: In the event either party defaults under the terms of this Lease,either party mayterminate this lease upon a 30-dayNotice as provided bylowa Code. 9. IMPROVEMENTS AT FINAL LEASE TERMINATION: In the event that this Lease expires without extension or replace or is earlier terminated for any reason,Landlord agrees to quit claim to Tenant all Improvements constructed by Tenant throughout the duration of Tenant's tenancy. 10. FERTILIZER APPLICATIONS: All spraying and fertilizer used on the Property shall be the sole expense of Tenant. Tenant shall file reports of fertilizer applications on the Property as mayreasonably be required to keep Landlord informed or meet State or Federal regulations. 11. SUBLETTING: This Lease many not be assigned by Tenant without the written consent of Landlord, which consent maybe granted or withheld in Landlord's sole and absolute discretion.No portion of the Property maybe sublet by Tenant without the written approval of Landlord,which consent maybe granted or withheld in Landlord's sole and absolute discretion.Notwithstanding the forgoing Tenant may provide for temporary clubhouse rentals for social,golf,business or communityevents,cart shed rentals and golf events of a temporarynature. 12. EXISTING IRRIGATION WELL:Tenant is herebypermitted to continue use,at Tenant's sole cost and expense,of an irrigation well previously installed by Tenant and located south of hole 9 green,upon the following conditions: (a) All pumping equipment,piping and other apparatus necessaryin the use of the well shall be provided solely at Tenant's expense. (b) The City,by its Public Works Superintendent or other duly authorized official,may require that the Lessee discontinue pumping from its well in the following events: (i) During the progress of a fire within the Citylimits of Marcus for which water is being drawn from the municipal water system. (ii) The extent of the operation of the well maybe reas onably limited in a period of drought, allowing at all times reasonable amounts as will be needed to maintain greens and tee boxes,if it shall be determined that pumping in excess of those amounts will detrimentally affect the operation of the Citywells.It is anticipated that this can be determined by"draw down"tests on the Citywells,comparing the results with periods of normal operation.It is the intent of the parties 2 Exhibit"A" A tract of land in the S1/2 SE1/4 of Section 4,Township 92 North,Range 42 West of the 5th P.M., more completely described as follows: Commencing at the south quarter corner of said Sec.4;thence north 0°21'east along the south quarter line of said Sec.4 sixty feet to a point on the north right-of- way line of Iowa State Highways 3 and 5,being the point of beginning;thence north 0°21'east along the south quarter line of said Sec.41,266.4 feet to a point on the south eighth line of said Sec.4; thence north 89°30'east along the south eighth line of said Sec.4 2,609.3 feet to a point on the west right-of-way line of Iowa State Highway 143;thence due south along the west right-of-way line of Iowa State Highway 143 parallel to and 50 feet west of the east line of said Sec.4 310.0 feet;thence south 79°27';west 597.0 feet;thence south 28° 12'west 372.0 feet;thence south 19° 14'west 564.5 feet to a point on the north right-of-way line of Iowa State Highways 3 and 5;thence south 89°42' west along the north right-of way line of Iowa State Highways 3 and 5,parallel to and 60.0 feet north of the south line of said Sec.4 1,668.3 feet to the point of beginning,containing 60.0 acres,more or less. The east line of said Sec.4 is assumed to run due south; 4 that during these periods of stress,each partyshall cooperate with the other to meet their respective water needs. (iii) At any other time when the operation of the said irrigation well, except for the maintenance of fairways,shall interfere with a reasonable supply of water to the City,such as in time of repair of Citywells. Landlord will not arbitrarily assert anyrights under this paragraph unless it can be demonstrated with reasonable standards in the area of water management that a bona fide problem exists. 13. CITY COUNCIL APPROVAL CONTINGENCY.This Lease is expressly contingent upon the City Council of the City of Marcus granting all necessary approvals required for this Lease. IN WITNESS WHEREOF,we affix our hands on the date first above written. LANDLORD TENANT CITY OF MARCUS,IOWA MAR COMMUNITY GOLF CLUB,INC BY: BY MAYOR PRESIDENT A LEST: b061actbuieei-t- AiThST: U1O CITY Cf.FRK SECRETARY 3