HomeMy WebLinkAboutLand Lease Agreement with Ken Hamilton
LAND LEASE AGREEMENT
THIS AGREEMENT is made and entered into this qrA day of
S:eøt
, 2004, by and between the City of Meridian, a municipality and political
subdivision of the State ofIdaho, hereinafter referred to as the "Lessor," party of the first part,
and Ken Hamilton d/b/a Ken Hamilton Presentations, Inc., hereinafter referred to as the "Lessee,"
party of the second part,
WITNE SSETH:
That the said Lessor, for and in consideration of the rents, covenants and
agreements hereinafter mentioned on the part and behalf of the said Lessee to be paid, kept and
perfonned, does by these presents grant, demise and lease unto. the said Lessee, and the said
Lessee does by these presents hire, rent and take from the said Lessor, that certain premises
located on the following described real property, to wit:
Beginning at the SW corner of the NEl/4NWl/4, Section 18, T.3N.,
RlE., B.M., Ada County, Idaho, the real point of beginning; thence
Northerly along the Westerly boundary of said NEl/4NWl/4, Section 18, a
distance of 1050 feet to a point on the Northeasterly bank of a stream
called Ninemile Creek; thence Easterly parallel to the Southerly boundary
of said NEl/4NWl/4, Section 18, a distance of 622 feet to a point; thence
Southerly parallel to the Westerly boundary of said NEl/4 NWl/4, Section
18, a distance of 1050 feet to a point on the Southerly boundary of said
NEl/4NWl/4, Section 18, thence Westerly along the Southerly boundary
of said NEl/4NWl/4, Section 18 to the real point of beginning comprising
15.0 acres.
TO HA VB AND TO HOLD said premises, together with the appurtenances,
privileges, rights and easements thereto belonging, unto the said Lessee for the tenn of five years,
LAND LEASE AGREEMENT - 1
said term to commence on July
:-¡). . ~
¡ 5 , 2004, and terminate on July ):5 , 2009, for
the rental and upon the terms and conditions as follows:
RENTAL: Lessee covenants and agrees to pay annual rent for said premises for
the tenn of this Lease Agreement in the sum of $250.00 per year for the term of this lease
agreement which shall be payable on July I ø- , of each year, commencing July
¡ð
,2004.
Provided, however, that the rental for the first and last payment of this Lease
Agreement shall be paid upon the execution ofthis Lease Agreement.
NO RIGHT OF FIRST REFUSAL OF SALE: In the event Lessor decides to
sell the above described premises, it is understood and agreed that Lessor has not granted to
Lessee a right to purchase the premises; it is specifically understood that in the event Lessor does
sell the said property, it will have to be sold to the highest bidder but that Lessee may bid on the
property.
USE OF PREMISES: Lessee covenants and agrees that the leased premises shall
be used for a parking area and/or for an extension of the "pit" area; and any other business that is
compatible therewith, and shall not be used for any other purpose or purposes without the prior
written consent of Lessor. Lesssor and Lessee shall each have keys and shall lock and unlock the
east bypass gate according to their respective uses; that the north gate to the leased property shall
be open during the racing season of the Meridian Speedway during the race season from 9:00
o'clock a.m. to 5:00 o'clock p.m.; that Lessee has the option and right to fence off the leased
property from the Meridian Speedway stadium; that the Lessor may use the non-paved area of the
LAND LEASE AGREEMENT - 2
"pit" area if it desires to if prior written notice and arrangements, written or non-written, are made
with Lessee.
It is agreed that Lessee may have the use of the land for parking and other uses,
but Lessee agrees that he shall not charge a price for parking on the land or for any other use of
the land.
MAINTENANCE AND REPAIR: Lessee agrees to maintain and repair the
demised property and improvements in as good condition as the same are in at the time Lessee
shall take possession of the demised premises, reasonable wear, tear and damage by the elements
excepted, subject to the specific duties imposed upon the respective parties hereto by this Lease.
Lessee shall be totally responsible for all maintenance and repairs on the premises, and, at the
termination of this Lease in any manner, Lessee shall surrender said premises to Lessor in such
condition.
ALTERATIONS AND IMPROVEMENTS: Lessee shall have the right to
make improvements or alterations to said leased premises upon approval of the Lessor, provided
that any improvements or alterations thereof will not damage the leased premises. Provided,
however, upon the termination of this Lease, such improvements or alterations as shall have been
added or made by Lessee shall revert to the Lessor, and shall become a part of the real property
so leased herein.
SIGNS AND EQUIPMENT: Lessee shall have the right to place a reasonably
sized sign upon the premises advertising parking for Lessee's business; provided, however, that
said sign will not obstruct the vision ofthe leased property on either side of the property subject
to this Lease Agreement. Upon termination of this Lease, Lessee shall have the right to remove
LAND LEASE AGREEMENT - 3
said sign from the premises so long as Lessee repairs any damage to the structure occasioned by
such removal at Lessee's own cost.
COMPLIANCE WITH LAW: Lessee agrees to comply with all municipal, state
and federal laws, rules, regulations and ordinances and to do all things necessary to stay in
compliance with the same.
UTILITIES: It is expressly agreed that during the full tenn of this Lease, Lessee
shall furnish and promptly pay for any and all expenses accruing by reason of Lessee's use and
occupancy of the leased premises in or about said premises at Lessee's own cost and expense.
TAXES AND ASSESSMENTS:
Lessee shall pay all real estate taxes and
assessments of any kind levied against the above demised premises during the tenn of this Lease
and any extension thereof; and Lessee shall pay any personal property taxes and assessments of
any kind levied against Lessee's personal property located upon the above described premises,
promptly as the same become due.
ASSIGNMENT OR SUBLEASING: Lessee shall not assign this Lease nor
sublet to any other lessee the said leased premises or any portion thereof, without the written
consent first obtained of Lessor; provided, however, such consent shall not be unreasonably
withheld by Lessor.
AUTOMATIC CANCELLATION: It is understood and agreed that voluntary
or involuntary filing of bankruptcy, or assignment for the benefit of creditors, or any other act of
insolvency by or on behalf of the Lessee shall automatically cancel this Lease, and Lessor shall be
entitled to immediate possession of the leased premises.
LAND LEASE AGREEMENT - 4
DAMAGE OR DESTRUCTION: If the demised premises shall be damaged by
fire, the elements, explosions or other causes, Lessee will, at Lessee's own proper cost and
expense, cause the same to be repaired and restored to the same condition as before such damage
was done, subject to delays due to adjustment of insurance claims, strikes and other causes
beyond Lessee's control or, in the alternative, Lessor shall cause such repair to be made and
Lessee shall reimburse Lessor therefor from insurance proceeds received by Lessee. If the
demised premises shall be so damaged as to be unfit in whole or in part for occupancy or use in
the manner and fonn as theretofore used, Lessee shall cause the same to be promptly restored,
repaired and rebuilt to the extent of Lessee's obligations for maintenance under the terms of this
Lease.
FIRE HAZARDS: The Lessee shall not do anything on the premises or bring or
keep anything thereon which will increase the risk of fire, or which will conflict with the
regulations of the fire department or any fire laws, or with any fire insurance policies on the
premises, or with any rules or ordinances established by the board of health, or with any
municipal, state or federal laws, ordinances or regulations.
LABOR CONTRACTS AND EMPLOYEES: The parties hereto expressly
covenant and agree that all labor contracts and employment agreements with employees shall be
made directly with Lessee and that all such employees shall be deemed solely the employees of
Lessee and in no way employees of Lessor. Lessee covenants and agrees 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.
LAND LEASE AGREEMENT - 5
RIGHT OF INSPECTION: Lessor shall have the right to enter the demised
premises at any reasonable time to examine the same and to determine the state of repair or
alterations which shall or may be necessary for the safety and preservation of the premises.
WASTE PROHffiITED: Lessee shall not commit any waste or damage to the
premises hereby leased nor permit any waste or damage to be done thereto.
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 of said premises or any part thereof, or from the dirt or subsurface, or from any
other source or cause whatsoever, and Lessee agrees to indemnifY and hold harmless Lessor from
such liability.
INSURANCE:
A.
Liabilitv Insurance. The Lessee shall at all times keep in force a standard insurance policy
insuring the City and the Lessee against public liability on or in any way connected with the premises with
the limits of liability in those amounts as currently set forth in the Idaho Tort Claims Act, or in such
amounts as may hereafter be set forth by said Act during the tenn of this. lease. Lessee further agrees to
provide City with written proof of insurance at least annually, or upon the reasonable request of City.
B. Lessee to Indemnifji Citv: Lessee agrees to defend, indemnify and hold City hannless for any
damages or claims which arise out of the Lessee's use or occupancy or the leased premises.
FIRE AND EXTENDED COVERAGE INSURANCE:
Lessee shall be
obligated to maintain fire and extended coverage on the demised premises for the full insurable
value thereof and Lessee shall name Lessor as an additional insured thereon. Lessee shall furnish
Lessor with a certificate of such insurance coverage, or renewals thereof, at least annually, and
shall keep all such policies in a current status. Lessee may maintain fire and extended coverage on
LAND LEASE AGREEMENT - 6
the contents and personal property of Lessee located with said structures as Lessee desires, but
Lessor shall be under no obligation to maintain any fire or extended coverage insurance on those
contents or personal property of Lessee.
CONDEMNATION: If the entire 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. Any condemnation award shall be divided between the parties hereto in
accordance with and in proportion to their respective Lessor and Lessee interests.
SURRENDER OF POSSESSION: Lessee agrees to surrender possession of
said leased premises to Lessor at the expiration of this Agreement, or any extension thereof, in the
same condition as when the same were entered into by Lessee, wear and tear, reasonable use and
occupancy and damage by the elements excepted.
DEFAULT AND FORFEITURE: Time and the strict and faithful perfonnance
of each and every one of the conditions of this Agreement are expressly made the essence of this
Agreement. If default be made by the L~ssee in payment of any part of Lessee's annual payment
when the same shall become due, or default be made by the Lessee in keeping, performing or
observing any of the covenants and agreements herein contained and such default shall remain so
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 Lessor's election,
either in law or equity, seek specific perfonnance of this Agreement or may declare said tenn and
Lease forfeited and ended and re-enter said demised premises again 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
LAND LEASE AGREEMENT - 7
thereafter the Lessee shall fail to surrender possession of the demised premises to Lessor, the
Lessee shall be deemed guilty of an unlawful and forcible detention of said premises. If Lessee
shall abandon or vacate said premises, or if this Lease be terminated for breach of any of the
covenants and agreements herein contained, Lessee hereby agrees to pay all reasonable expenses
incurred by Lessor in obtaining possession of said premises from Lessee, including reasonable
legal expenses and attorney's fees, and to pay such other expenses as the Lessor may incur in
putting the 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 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 attorneys fees incurred by Lessor in determination of the default and the
notification to the defaulting Lessee.
Additionally, this lease shall also be terminated for one of the following:
At the expiration of the tenn provided herein;
a)
b)
Upon determination of the Lessor that the Lessee has failed to observe any
of the conditions, exceptions or reservations or to fulfill any of the
provisions set out in this agreement;
c)
At the option of the Lessor on the discontinuance of use of the leased
premises by the Lessee; or
d)
By the mutual agreement of the parties hereto.
The foregoing rights and remedies are not intended to be exclusive, and all parties
shall have any and all other remedies permitted in law or equity. The rights and remedies of the
parties are not intended to be mutually exclusive except to such extent that they are inherently and
LAND LEASE AGREEMENT - 8
necessarily contradictory, and it is intended that all permissible remedies and rights may be
exercised concurrently or successively, or both.
LESSOR'S LIEN: It is agreed between the parties that Lessor shall have a valid
lien upon all goods, chattels and other property belonging to Lessee located on the leased
premises as security for the payment of rent and fulfillment of the faithful perfonnance of the
covenants and conditions of this Lease. This is to say that Lessor may distrain for any rent or
damages that may be due hereunder any of said property, whether the same be exempt from
execution or not, and that Lessee in that case, hereby waives all legal right which Lessee now has,
or may have, to hold or retain any such property under any exemption laws in the State ofIdaho.
However, any lien of Lessor shall be junior, inferior and subordinate to crop or
financing liens as given by Lessee to third parties. This provision shall not conflict with Lessee's
right to obtain financing for crops.
The lease of the said equipment is not to be considered a secured transaction
despite the fact that a financing statement may be filed herein.
HAZARDOUS SUBSTANCES:
Lessee represents and warrants that the
premises will never be used for the generation, manufacture, storage, treatment, disposal, release
or threatened release of any hazardous substances as those tenus are defined in the
Comprehensive Enviromnental Response, Compensation and Liability Act of 1980, as amended,
42 USC § 9601 et seq. ("CERCLA") Superfund Amendments and Reauthorization Act
("SARA"), applicable state laws or regulations adopted pursuant to either of the foregoing, and/or
by applicable Federal or State laws and regulations. For the purpose of this lease, "hazardous
substances" shall also include petroleum products. Lessee agrees to indemnify and hold harmless
LAND LEASE AGREEMENT - 9
Lessor against any and all claims and losses resulting from a breach of this provision of this
agreement. This obligation to indemnifY shall survive the payment of the indebtedness and the
satisfaction of this agreement.
TERMINATION: Notwithstanding the foregoing, this Lease may be terminated
at any time by either party giving thirty (30) days written notice to the other party of an intention
to terminate this Lease Agreement.
ATTORNEY'S 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 successful party to such action or collection shall be entitled to recover from
the losing party a reasonable attorney's fee, together with such other costs as may be authorized
bylaw.
In case suit shall be brought for an unlawful detainer of the said premises for the
recovery of any rent due under the provisions of this Lease, or because of the breach of any other
covenant herein contained on the part of Lessee to be kept or perfonned, Lessee shall pay to
Lessor all costs, expenses and attorney's fees which shall be incurred by Lessor in enforcing the
covenants and agreements of this Lease Agreement.
NOTICES: All notices required to be given to each of the parties hereto under
the tenus of this Agreement 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:
William G. Berg, Jr.,
City Clerk
33 East Idaho Avenue
Meridian, Idaho 83642
LAND LEASE AGREEMENT - 10
Lessee:
Ken Hamilton
d/b/a Ken Hamilton Presentations, Inc.
P.O. Box 158
Meridian, Idaho 83680
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.
REPRESENTATIONS: It is understood and agreed by and between the parties
hereto that there are no verbal promises, implied promises, agreements, stipulations,
representations or warranties of any character excepting those set forth in this Agreement.
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.
RECORDING: The parties hereto agree that they will not record a copy of this
Agreement, Lessee's occupancy of said premises being notice of Lessee's interest therein, and the
recording of said Lease by Lessee shall, at the option of Lessor, constitute a default in the tenus
and conditions hereof
SITUS: This Lease is established and accepted by the Lessee under the laws of
the State ofIdaho, and all questions concerning its validity, construction and administration shall
be determined under such laws.
HEADINGS: The bolded paragraph headings are for convenience only and are
not a part of this Lease agreement and shall not be used in interpreting or construing this Lease
agreement.
LAND LEASE AGREEMENT - 11
SEVERABILITY: 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.
IN WITNESS WHEREOF, the Lessor and Lessee do execute this Lease
Agreement the day and year first above written.
"Lessor"
CITY OF MERIDIAN, a municipality and political
subdivision of the State ofIdaho
ATTEST:
KEN HAMILTON, d/b/a KEN HAMILTON
PRESENTATIONS, INc.
~~en Hamilton, President of Ken ~t~~-
Presentations
STATE OF IDAHO)
:ss
County of Ada
On this SrJ day of )hrJeM6er , in the year 2004, before me, the
undersigned, a Notary Public in and for said State, personally appeared Tanuny de Weerd and
LAND LEASE AGREEMENT - 12
William G. Berg, Jr., known or identified to me to be the Mayor and City Clerk, respectively, of
the City of Meridian, a municipality and political subdivision of the State ofIdaho, known to me
to the entity that granted the authority to the said individuals to subscribe their names to the
within and foregoing instruments in their capacity as Mayor and City Clerk, and acknowledged to
me that they executed the same in the name of the City of Meridian.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the day and year in this certificate first above written.
....' """"'"
;".~Cß L. 8A~~'
F. ~r;-":':/¡, -'-:,
II ," '. -1- -:,
1 ~OTAJ(J ". "
æ * t -.- : * æ
\ \ ÞlfBL\C j j
~<I'¡.'" /0 I
~, ..¡ '.......'" of .~
-',../I:! 01' \íIt:....
STATE OF IDAHO) ...............,
:ss
)
(SEAL)
County of Ada
On this Æ- day of 0"1, ' in the year 2004, before me, the
undersigned, a Notary Public in and for said State, personally appeared Ken Hamilton, known or
identified to me to be the Au .,' eI '... t for Ken Hamilton Presentations, Inc., and
the person who subscribed his name to the within and foregoing instrument and acknowledged to
me that he executed the same on behalf of Ken Hamilton Presentations, Inc.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the day and year in this certificate first above written.
J1. &~ S~~
Notary Public for Idaho
Commission expires: o'f- 15-/0
Residing at: Ada.. ~
LAND LEASE AGREEMENT - 13
~.------- -
I~'--'-'~---' -
CITY OF ,
.c:c::::U'endiãn
,.. 33 E. Idaho Ave.
A Meridian, 10 83642
, ""q"". ",.<,'
'" "T",~,u,,'V'
~c+
[..
Applicant
2684
Aeeel
By
94160