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HomeMy WebLinkAboutLift Station Lease Agreement with New OaksADA COUNTY RECORDER Christopher D. Rich 2016-092923 BOISE IDAHO Pgs=12 DAWN TRIVOLIS 09/29/2016 10:53 AM CITY OF MERIDIAN, IDAHO NO FEE LIFT STATION LEASE AGREEMENT THIS LIFT STATION LEASE AGREEMENT rLease") is made and entered into this l day of September, 2016, by and between NEW OAKS LLC, an Idaho limited liability company and its successors and assigns, hereinafter referred to as the "Lessor," and THE CITY OF MERIDIAN, IDAHO, hereinafter referred to as the "Lessee" or "City," RECITALS Lessor is developing The Oaks North and South Subdivisions (the "Subdivisions") within the City. The City will provide sewer service for the Subdivisions and has caused to be constructed an interim sanitary sewer lift station ("Lift Station") within the Oaks South Subdivision that will be owned and operated by the City as part of its municipal sanitary sewer collection system to provide sanitary sewer to the Subdivision and to other areas within the City's municipal service area. Lessor and the City wish to enter into this Lease granting the City the rights of access and use and for Lift Station operations and maintenance as described herein. Lessor is willing to provide a Lift Station site lot for the City to operate and maintain the Lift Station in the location depicted and described on Exhibits A-1 and A-2 hereto. Lift Station Lease Agreement -1 instation lot lease for new oaks sub - final4100747r81 AGREEMENT Lessor, for and in consideration of the above recitals, and the benefits, covenants and agreements hereinafter mentioned on the part and behalf of the said Lessee to be kept and performed, does by these presents demise and lease unto the said Lessee, and Lessee does by these presents hire, rent and lease from Lessor, that certain real property located on the following described real property, to wit: See Exhibits "A -I' and `AZ (map of site & legal description) attached hereto and, by this reference, incorporated herein as if set forth in full (the "Leased Premises"). TO HAVE AND TO HOLD said Leased Premises, together with the appurtenances, privileges, rights and easements thereto belonging, and subject to all rights, easements, and encumbrances of record, unto the said Lessee for the rent and upon the terms and conditions as follows: 1, RENT: Lessor and Lessee hereby waive monetary rent and agree that the mutual benefits provided herein constitute adequate consideration for this Lease. The mutual benefits include but are not limited to Lessee's ability to begin using the Lift Station in advance of platting and Lessor having the benefit of sewer service sooner than would otherwise be available. 2. TERM: This Lease shall be for the term of one hundred (100) years, commencing on December 8, 2015 (the "Lease Term"), unless extended or earlier terminated as provided herein. 3, USE OF LEASED PREMISES: Lessee covenants and agrees that the Leased Premises shall be used for a Municipal Lift Station, and the construction, operation, and maintenance thereof, and shall not be used for any other purpose or purposes without the prior written consent of Lessor. 4, LEASE EXTENSION: Unless this Lease is terminated prior to the end of the Lease Term as provided herein, then this Lease shall automatically renew for additional ten (10) year terms, not to exceed one hundred (100) additional years, unless otherwise agreed to in writing by the parties. Lift Station Lease Agreement - 2 mstation lot lease for new oaks sub — fina141007476.81 5. LEASE TERMINATION:The parties agree that notwithstanding the Lease Term provided above, this Lease shall earlier terminate when the Leased Premises have been subdivided and platted and the Leased Premises tot has been conveyed to the City of Meridian. 6. MAINTENANCE: The Leased Premises is bare ground. During the term of this Lease Lessee shall, at Lessee's sole cost and expense, maintain the Leased Premises in as good condition as the same is in at the time Lessee shall take possession of the Leased Premises, reasonable wear, tear and damage by the elements excepted. 7, ALTERATIONS AND IMPROVEMENTS: Lessee shall have the right to make alterations and improvements to the Leased Premises that are consistent with the ongoing operation and maintenance of the Lift Station, Lessee shall maintain all such alterations and improvements made by Lessee in a neat and orderly condition. Except as otherwise agreed by Lessor and Lessee by separate written agreement, upon'the termination of this Lease, the Lift Station and related improvements as shall have been added or made by Lessee shall not revert to the Lessor, shall not become a part of the Leased Premises and shall be removed from the Leased Premises by Lessee within sixty (60) days of termination. Lessee's operation, maintenance, repair, replacement, removal or abandonment of the Lift Station and other improvements shaft comply with all design guidelines applicable to the Leased Premises and all laws and requirements and standards for construction, operation and/or abandonment of Lift Stations, 8. COMPLIANCE WITH LAW: Lessee agrees to comply with all municipal, state and federal laws, rules, regulations and ordinances governing its use of the Leased Premises and Lift Station and to do all things necessary to stay in compliance with the same. 9, UTILITIES: It is expressly agreed that during the full term of this Lease, Lessee shall furnish and promptly pay for any utilities required for the Leased Premises and improvements at Lessee's own cost and expense. Lift Station Lease Agreement - 3 imstation lot lease for new oaks sub — fina14/00747&81 10. TAXES AND ASSESSMENTS: Lessor shall pay all real estate taxes and other assessments of any kind levied against the Leased Premises during the term of this Lease as the same become due, 11. ASSIGNMENT OR SUBLEASING: Lessee shall not assign this Lease nor sublet to any other lessee the Leased Premises or any portion thereof, without Lessor's prior written consent; provided, however, such consent shall not be unreasonably withheld by Lessor. 1Z LABOR CONTRACTS AND EMPLOYEES: The parties expressly covenant and agree that all labor contracts and employment agreements with employees or contractors providing services or materials to or construction upon the Leased Premises shall be made directly With Lessee and that all such employees and contractors shall be deemed solely the employees or contractors of Lessee and in no way employees or contractors of Lessor. Lessee covenants and agrees to keep the Leased Premises free and clear of any claims, including but not limited to mechanics or materialmen's liens, and to indemnify and hold harmless Lessor of and from any liability for any acts of employees of Lessee or any acts of persons working for Lessee under a labor contract, 13. WASTE PROHIBITED: Lessee shall not commit any waste or damage to the Leased Premises nor permit any waste or damage to be done thereto. 14. LIABILITY: Lessor shall not be liable for any injury or damage which may be sustained by any person or property of the Lessee or any other person or persons resulting from the condition or operation of the Leased Premises or any improvement thereon, or from the street or subsurface, or from any other source or cause whatsoever, nor shall the Lessor be liable for any defect, latent or otherwise, in the Lift Station or structures erected on the Leased Premises, and Lessee agrees to indemnify and hold harmless Lessor from all such liability, Lift Station Lease Agreement - 4 wstation lot lease for riew oaks sub - final4/007476-81 15, LIABILITY INSURANCE: Lessee shall maintain a comprehensive liability insurance policy covering the above -demised premises during the term of this Lease with a responsible insurance company, all at the sole cost and expense of Lessee in the sum of $500,000.00 single -limit coverage. 16. FIRE AND EXTENDED COVERAGE INSURANCE: Lessee shall maintain fire and extended coverage on the Lift Station and other improvements to the Leased Premises, and Lessor shall be under no obligation to maintain any fire or extended coverage insurance thereon, 17. CONDEMNATION: If the entire Leased Premises, or a substantial part thereof, are condemned or taken by purchase in lieu thereof, then this Lease shall terminate as of the time possession is taken. 18. DEFAULT AND FORFEITURE: Time and the strict and faithful performance of each and every one of the conditions of this Lease are expressly made the essence of this Lease. If Lessee defaults in the keeping, performing or observing of any of the covenants and agreements herein contained and such default shall remain uncured for a period of thirty (30) days after written notice shall have been sent by certified or registered mail to Lessee as hereinafter provided, then in such event the Lessor may, at Lessors election, either in law or equity, seekspecific performance of this Lease or may declare said term and Lease forfeited and terminated and may re-enter the Leased Premises to repossess and enjoy the same as in their first estate, and the effect of such default shall in itself, at the election of Lessor, without further notice or demand constitute a forfeiture and termination of this Lease, and if thereafter the Lessee shall fail to surrender possession of the Leased Premises to Lessor and remove all improvements, the Lessee shall be deemed guilty of an unlawful and forcible detention of the Leased Premises, If Lessee shall abandon or vacate the Leased Premises, or if this Lease be terminated for default of any of the covenants and agreements herein contained, Lessee hereby agrees to pay all reasonable expenses incurred by Lessor in obtaining possession of the Leased Premises from Lessee, including reasonable Lift Station Lease Agreement - 5 uffstation lot lease for new oaks sub - fina10007476,81 legal expenses and attorney's fees, and to pay such other expenses as the Lessor may incur in putting the Leased Premises in good order and condition as herein provided, and also to pay all other reasonable and necessary expenses or commissions paid by Lessor in re-leasing the Leased Premises. In the event of notification of default by Lessor to Lessee and Lessee does in fact cure such default, then and in that event Lessee shall pay, in addition to all arrearages as existing under the notice of default, the reasonable attorney fees incurred by Lessor in determination of the default and the notification to the defaulting Lessee. 19, INDEMNIFICATION: During the term of this Lease (and thereafter, for incidents occurring during any term of this Lease) Lessee shalt, to the extent allowed by law, indemnify, defend and hold harmless Lessor against any and all claims, liabilities, damages, expenses (including reasonable attorney fees), judgments, proceedings and causes of action of any nature arising from, (j) injury to or death of any person, or damage to or loss of any property occurring on, in or around the Leased Premises, or (ii) growing out of connected with the use, condition or occupancy of the Leased Premises or (iii) losses resulting from a breach of this provision of this Lease. This obligation to indemnify shall be limited to the acts or omissions of Lessee or its officers, contractors, licensees, agents, servants, employees, guests, invitees or visitor and not caused by the negligence or other wrongful act of omission of Lessor, or Lessors officers, employees, or servants. Lessee's obligation to indemnify shall survive the satisfaction of this Lease, 20. ATTORNEYS FEES: In the event an action is brought to enforce any of the terms or provisions of this Lease, or enforce forfeiture thereof for default thereof by either of the parties hereto, the prevailing party in such action or collection shall be entitled to recover from the other party its reasonable attorney's fees and costs, together with such other costs as may be authorized by law. Lift Station Lease Agreement - 6 iinstation lot lease for new oaks sub - final4/OO7476-81 21. NOTICES: All notices required to be given to each of the parties hereto under the terms of this Lease shall be given by depositing a copy of such notice in the United States mail, postage prepaid and registered or certified, return receipt requested, to the respective parties hereto at the following address: Lessor: New Oaks LLC 3103 W. Sheryl Drive Meridian, ID 83642 Lessee: City of Meridian 33 E. Idaho Meridian, ID 83642 or to such other address as may be designated by writing delivered to the other party. All notices given by certified mail shall be deemed completed as of the date of mailing except as otherwise expressly provided herein. 24, REPRESENTATIONS: It is understood and agreed by and between the parties hereto that there are no verbal promises, implied promises, agreements, stipulafions, representations or warranties of any character excepting those set forth in this Lease. 25, BINDING EFFECT: The provisions and stipulations hereof shall inure to the benefit of and bind the heirs, executors, administrators, assigns and successors in interest of the respective parties hereto. 26. SITUS: This Lease is established and accepted by the Lessee under the laws of the State of Idaho, and all questions concerning its validity, construction and administration shall be determined under such laws, 27. HEADINGS: The bolded paragraph headings are for convenience only and are not a part of this Lease and shall not be used in interpreting or construing this Lease Agreement. Lift Station Lease Agreement - 7 oftstation lot lease for new oaks sub — final4/007476,81 28. SEEVERABILITY: If any portion or portions of this Lease shall be, for any reason, invalid or unenforceable, the remaining portion or portions shall nevertheless be valid, enforceable and carried into effect, unless to do so would clearly Violate the present legal and valid Intentions of the parties hereto. Lift Station Lease Agreement - 8 astation lot lease for new oaks sub - fina141007476-6i IN WITNESS WHEREOF, Lessor and Lessee do execute this Lease effective the day and year first above written. STATE OF IDAHO 61.1 County of Ada "Lessor' NEW OAKS LLC By:_ V Thomas M. Coleman Jr. President of Coleman Communities, Inc. Manager of Coleman Homes LLC Manager of New Oaks LLC' On this Zay of o1K , 2016, before me, the undersigned, a Notary Public in and for said State, personally appeared Thomas M. Coleman Jr., known or identified to me to be the person who executed the foregoing instrument on behalf of said limited liability company and acknowledged to me that such limited liability company executed the same. (SEAL) INCL A NOTA P ELIC F0 IDAHO CON.• % TAR} 7n RESIDING AT: .•... MY COMMISSION EXPIRES: 3 0l ,n P{1Boc .G! Lift Station Lease Agreement - 9 imstation lot lease for new oaks sub - final4i007476-e1 (+ Cily or w E IDIAN /OANO SEAL ) STATE OF IDAHO "Lessee" CITY OF MERIDIAN, IDAHO ss. County of Ada On this _y' day of m , 2016, efore me, the undersigned, a Notary Public in and for said State, personally appeared T and 4aysee C . Sc�y tb ., known to me to be the and City Clerk of the City of Meridian, Idaho, and who executed the W.5 within instrument, and acknow dged to me that the City of Meridian executed the same. Cay 0"qd- "l �i'eSrG� f IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written. (SEAL) ' -�'0 •�' p � . tt 049 6649 I� L NOTARY PUBLI OR 1D HO }� RESIDING AT: _! MY COMMISSION EXPIRES:' Lift Station Lease Agreement -10 rnstation lot lease for new oaks sub - fina14100747i i EXMBIT A-1 DESCRIPTION FOR INTERIM LIFT STATION AND PRESSURE SEWER LOT PROPOSED OAKS SOUTH SUBDIVISION A parcel of land located in the NW of Section 33, T. 4N., R.1 W.,; ,B.M., Meridian, Ada County, Idaho, more particularly described as follows: Commencing at the Northwest corner of the said Section 33, from which the North 114 comer of said section bears South 89016'58" East, 2635 25 feet; thence along the west boundary of the NW of said section South 0003239" West, 712.72 feet; thence leaving said boundary South 89*2721" East, 50.00 feet to the POINT OF BEGINNING; thence continuing South 89027'21" East, 150.72 feet; thence South 0003239" West, 185.23 feet, thence North 89'27'21" West, 150.72 feet; thence North 00'3239" East, 18523 feet to the POINT OF BEGINNING. Containing 27,918 SF (0.64 acres), more or less. Lift Station Lease Agreement -1 I gftstation lot lease for new oaks sub - fina1414074-16.81 HIM A- < 29 1,28 Y/ Mcrt�llMN MV s W16'58` E; 26 &W 28 1/4 ch ;3,>T-.3 BASIS OF 8EAf2M--33 ONY"S + rtj SUSO - ``I t I PROPOSED INTERIM LIFT STATION AND PRESSURE SEWER LOT 0,60 ACRS w it"27ir W TS{7.72 ,gyp LAi4r�7" Lift Station Lease Agreement - 12 mstation lots lease for new oaks sub - final4/007476.81