HomeMy WebLinkAboutReSurge Church, Inc. Commercial Lease Agreement First Amendment FIRST AMENDMENT to
COMMERICIAL LEASE AGREEMENT
This FIRST AMENDMENT to COMMERCIAL LEASE AGREEMENT ("First Amendment")is
entered into this .5_�4 day of_j i�I,2023,by and between the City of Meridian, a municipal
corporation organized under the laws of the State of Idaho ("Landlord"), and ReSurge Church, Inc., a non-
profit corporation organized underthe laws of the State of Idaho ("Tenant").
WHEREAS, the Parties seek by this First Amendment to extend the lease term of the Commercial
Lease Agreement ("Lease"), a copy of which is attached hereto as Exhibit A;
NOW, THEREFORE,in consideration of the mutual covenants of the parties, the Parties agree as
follows:
A. SECTION 2 MODIFIED. Section 2 of the of the Lease shall be modified to read as follows:
2. Term of Lease.This Lease shall expire at 11:59 p.m. on February 29, 2024.
B. SECTION 4 MODIFIED. Section 4 of the of the Lease shall be modified to read as follows:
4.Rent. Tenant shall pay to the Landlord monthly rent ("Rent") on a per square foot basis. For
purposes of this Lease, the Parties have agreed that the square footage to be used in computing the Rent
shall be 7,200 square feet.
4.1 Rent amount. Tenant shall pay Rent for the Leased Premises of 53/100 Dollars($0.53)
per square foot, which is $3,816.00 per month.
4.2 Payment date. Tenant shall pay the Rent to Landlord, in advance, on the first day of
each month of the lease term, and any renewals thereof. In the event the lease term terminates on a date
that is not the first or last day of the month,Tenant shall pay a prorated monthly installment, in
advance,on the first day of the last month of the lease term,at the then current rate,based on the
number of days of actual occupancy during the last calendar month of the lease term.
C. NO ADDITIONAL PROVISIONS. The Parties agree that except as expressly modified by this First
Amendment, all provisions of the original June 1, 2018 Lease shall remain in full force and effect. No
other understanding, whether oral or written, whether made prior to or contemporaneously with this
First Amendment shall be deemed to enlarge, limit or otherwise affect the operation of the June 1,2018
Lease or this amendment thereto.
IN WITNESS WHEREOF, the parties shall cause this First Amendment to be executed by their
duly authorized officers to be effective as of the day and year first above written.
TENANT:
r�z
R es, President
ReSurge Church, Inc.
CITY OF MERIDIAN:
BY: Attest:
Robert E. Simison 7-18-2023 Chris Johnson 7-18-2023
Mayor City Clerk
FIRST AMENDMENT TO JUNE 1,2018 LEASE PAGE 1
EXHIBIT A
June 1, 2018 Lease
FIRST AMENDMENT TO TUNE 1,2018 LEASE PAGE 2
COMMERCIAL LEASE AGREEMENT
Suite 101 of Homecourt Facility
Tenant: ReSurge Church,Inc.
Landlord: City of Meridian
THIS LEASE AGREEMENT ("Lease") is entered into this date and retroactive to an
effective date of June 1, 2018, between the City of Meridian, an Idaho Municipal Corporation,
hereafter referred to as "Landlord," and ReSurge Church, Inc., an Idaho Religious Corporation,
hereafter referred to as "Tenant," sometimes collectively referred to as the"Parties." The Parties
agree as follows:
1. Leased Premises. Landlord hereby leases to Tenant, and Tenant leases from Landlord,
upon the terms and conditions set out in this Lease, that portion of the Landlord's building
commonly known as the Meridian Homecourt at 936 W. Taylor, Suite 101, described and
depicted on Exhibit "A," containing approximately 7,200 square feet. The previously described
property and other improvements now or hereafter placed on it, are hereafter called the
"Property,""Leased Premises," or"Premises."
2. Term of Lease. The Parties are currently in a landlord/tenant relationship under an
agreement which commenced on June 1, 2008 and which terminates on May 31, 2018. This
Lease Agreement shall supersede all terms and conditions of the prior agreement. This Lease
Agreement shall commence on June 1, 2018 and shall continue for sixteen months (initial Term
to terminate on September 30, 2019). Tenant shall be entitled to four additional twelve month
terms (up to September 30, 2023) so long as neither Party has given Notice to Terminate.
Landlord and Tenant each have a unilateral right to terminate this Lease upon giving the other
Party six month prior written notice. The Parties may extend this Lease beyond September 30,
2023 if they are able to reach agreement on rental rates and enter into a written extension to this
Lease Agreement.
3. Common Areas. Tenant will also have nonexclusive use of the common areas located
on the land on which the Premises is situated, including, but not limited to, the parking lot and
sidewalks adjacent to the Premises and all other areas on such land intended to be used in
common by all of the tenants of the Building and their invitees(collectively "Common Areas").
4. Rent. Tenant shall pay to the Landlord monthly rent("Rent") on a per square foot basis.
For purposes of this Lease, the Parties have agreed that the square footage to be used in
computing the Rent shall be 7,200 square feet.
4.1 Initial Rent. Tenant shall pay Rent for the Leased Premises of 48/100 Dollars
($0.48) per square foot, which is $3,456.00 per month, for the Initial Term of this Lease. Rent
shall be paid in lawful money of the United States.
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4.2 Rent for Successive Terms. If neither Party has given notice to terminate, the
following rates shall apply for successive 12 month terms:
4.2.1 Year 2 (Beginning October 1, 2019). Tenant shall pay Rent for the
Leased Premises of 50/100 Dollars ($0.50)per square foot, which is $3,600.00 per month.
4.2.2 Year 3 (Beginning October 1, 2020). Tenant shall pay Rent for the
Leased Premises of 51/100 Dollars ($0.51) per square foot,which is $3,672.00 per month.
4.2.3 Year 4 (Beginning October 1, 2021). Tenant shall pay Rent for the
Leased Premises of 52/100 Dollars ($0.52) per square foot,which is $3,744.00 per month.
4.2.4 Year 5 (Beginning October 1, 2022). Tenant shall pay Rent for the
Leased Premises of 53/100 Dollars($0.53) per square foot, which is $3,816.00 per month.
4.3 Payment Date. Tenant shall pay the Rent to Landlord, in advance, on the first
day of each month of the lease term, and any renewals thereof. In the event the lease term
terminates on a date that is not the first or last day of the month, Tenant shall pay a prorated
monthly installment, in advance, on the first day of the last month of the lease term, at the then
current rate, based on the number of days of actual occupancy during the last calendar month of
the lease term.
4.4 Common Area, Services and Taxes.
4.4.1 Tenant's Rent is inclusive of Tenant's pro rata portion of landscaping,
irrigation, garbage collection, snow and ice removal, maintenance and repair as described herein,
(collectively hereinafter"Operating Expenses")related to the Premises. In the event any utilities
are separately metered, Tenant agrees to timely pay any and all charges for such utilities directly
to the utility provider, which includes but is not limited to electric power, natural gas and
communications utilities. Tenant shall also provide and pay for their own janitorial services for
the leased premises.
4.4.2 Tenant shall pay, before the same become delinquent, all taxes assessed
against Tenant's personal property, furniture, fixtures, equipment, inventory and other property
on the Leased Premises, if any.
4.5 Late Fees. In the event any rental amount called for herein is not paid within ten
(10) days from the date it is due Tenant shall pay to Landlord a late charge of five percent (5%)
of the rental amount for each unpaid Lease payment until such payment is paid. The late charge
is due immediately and is in addition to all of Landlord's other rights in this Lease. In the event
Landlord gives written notice of Tenant's default, delinquency or other Lease violations, Tenant
agrees to pay Landlord's actual costs and attorneys' fees reasonably incurred in providing such
notice, in addition to the late charge and all other payments and obligations called for herein.
4.6 Security Deposit. There is no security deposit associated with this Lease
Agreement.
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5. Acceptance of Facilities. Tenant hereby accepts the Leased Premises, Building and
Property in their present condition. No representation, statement or warranty, expressed or
implied, is or shall be made by or on behalf of the Landlord as to the Building's or the Leased
Premises' condition, or as to the use that may be made of the Building or Leased Premises unless
specifically set forth in writing. Tenant releases Landlord from any responsibility for any
representation that may have been made to the Tenant about the Leased Premises or Building
that is not specifically set out in this Lease Agreement.
6. Use of Leased Premises. The Premises shall be used by Tenant solely as a Church and
other related purposes, and shall be used for no other purposes unless agreed to in advance by
Landlord.
7. No Smoking Policy. The Premises is a no smoking facility. No persons shall smoke
within the Leased Premises, within any Common Areas, or anywhere on the Premises.
8. Services and Utilities. Landlord does not warrant that any utilities and services will be
free from interruption. The Landlord shall not be liable to Tenant for any loss or damage caused
by or resulting from any variation, interruption, or failure of heat or any utility services due to
any cause, other than Landlord's negligent or willful acts. No temporary interruption or failure
of services due to the making of repairs, alterations, or improvements, or due to accident, strike
or conditions or events beyond Landlord's control shall be deemed an eviction of Tenant or
relieve Tenant from any of Tenant's obligations under this Lease.
4. Parking. The management of Tenant parking shall be the responsibility of the Tenant.
The Landlord has not made specific parking stall assignments.
10. Alterations and Improvements. Tenant shall make no changes, improvements or
alterations, to the Leased Premises without the Landlord's prior written consent, which Landlord
shall not unreasonably withhold.
10.1 All approved changes shall be at the Tenant's sole cost and expense and Tenant
shall use a licensed and bonded contractor or contractors for such alterations, and use a licensed
public works contractor if required by law. In the performance of such work, Tenant agrees to
comply with all laws and ordinances and to hold Landlord harmless from any damage, loss or
expense caused by work performed by Tenant or Tenant's contractors.
10.2 Any alterations, including the tenant improvements already existing on the Leased
Premises at the commencement of this Lease, shall become at once a part of the realty and
belong to the Landlord, except trade fixtures supplied and paid for by the Tenant subject to the
Tenant's duty to remove as set out in this Agreement.
10.3 At Landlord's request, within thirty (30) days prior to the Lease's termination,
Tenant shall restore the Leased Premises to the condition that existed at the commencement of
the Lease, except for normal wear and tear; provided that Tenant may request, prior to
commencing any approved change,improvement or alteration,Landlord's written waiver of this
section with regard to said change,improvement or alteration.
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10.4 Tenant shall keep the Leased Premises free from any liens, and shall indemnify
and hold Landlord harmless and defend it from any liens or encumbrances, damage, loss or
expense arising out of any work performed or materials furnished by or at the direction of
Tenant, or otherwise, to the Leased Premises.
11. Trade Fixtures. Tenant may install such equipment as is customarily used in the type of
business conducted by Tenant; provided it can be installed without damage to the Building or
Leased Premises. At the termination of this Lease, at the direction of the Landlord, Tenant shall,
or at Tenant's option Tenant may, remove from the Leased Premises all such equipment and all
other property of Tenant provided that Tenant repairs the damage caused by the removal and
restores, at the Tenant's sole cost and expense, the Leased Premises. Any property of the Tenant
not removed by the termination of this Lease shall at the option of the Landlord become the
property of the Landlord.
12. Repair and Maintenance.
12.1 Unless otherwise agreed, Tenant shall, at its own expense, maintain and make all
necessary repairs and replacements to the Leased Premises and every part thereof, including the
HVAC system, fixtures, and equipment. Such maintenance, repairs and replacements shall be
made promptly as and when necessary. All repairs and replacements must be of quality and
class at least equal to the original work.. Notwithstanding the foregoing, the Landlord shall be
responsible for repairing and replacing the structural components of the Leased Premises,
including the roof, exterior walls (except glass, doors, and door frames), fire protection system
and plumbing systems (except for plumbing fixtures that are part of the tenant improvements) .
12.2 On default of the Tenant in making such repairs or replacements, the Landlord
may, but shall not be required to, make such repairs and replacements for the Tenant's account,
and the expense thereof shall constitute and be collectible as additional rent.
12.3 Landlord shall not be obligated to repair or replace any fixtures or equipment
installed by Tenant and Landlord shall not be obligated to make any repair or replacement
occasioned by any act or omission of Tenant, its employees, agents, invitees or licensees.
13. Right of Entry_ Landlord may enter the Leased Premises at all times for emergencies,
and at reasonable times, after reasonable notice, during or after business hours, for the purpose of
inspecting, cleaning, repairing, altering, improving or exhibiting the Leased Premises, but
nothing in this Lease shall be construed as imposing any obligation on the Landlord to perform
any such work.
14. Damage or Destruction.
14.1 All damage or injury done to the Leased Premises by Tenant or by any persons
who may be in or upon the Leased Premises at the invitation of Tenant shall be paid for by
Tenant.
14.2 If the Leased Premises should be damaged or destroyed by fire or other casualty,
the rent shall be abated in the same ratio as the portion of the Lease Premises rendered unfit for
COMMERCIAL LEASE-4 DOCUMENT HLB.5
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occupancy bears to the whole of the Leased Premises. Notwithstanding the previous sentence, if
the Property or the Leased Premises are partially or totally destroyed or damaged by fire or any
other casualty to the extent that a substantial part of the Property or the Leased Premises is
rendered untenantable, this Lease shall terminate thirty (30) days following said damage or
destruction.
15. Indemnity.
15.1 The Tenant shall indemnify the Landlord from and against any and all claims,
demands, causes of action, suits or judgments (including fees, costs and expenses [including
attorney fees] incurred in connection therewith and in enforcing the indemnity) for deaths or
injuries to persons or for loss of or damage to property arising out of or in connection with the
condition, use or occupancy of the Tenant's Portion or any improvements thereon; or by
Tenant's nonobservance or nonperformance of any law, ordinance or regulation applicable to the
Leased Premises; or incurred in obtaining possession of the Tenant's Portion after a default by
the Tenant, or after the Tenant's default in surrendering possession upon termination of the
Lease, or enforcing any of the Tenant's covenants in this Lease. This includes, without
limitation, any liability or injury to the person or property of Tenant, its agents, officers,
employees, or invitees.
15.2 In the event of any such claims made or suits filed, Landlord shall give Tenant
prompt written notice thereof and Tenant shall have the right to defend or settle the same to the
extent of its interests thereunder.
16. Insurance.
16.1 Tenant shall provide its own property damage insurance.
16.2 From and after the commencement date of the term of this Lease, Tenant shall
provide liability insurance at its sole cost and expense, against claim for bodily injury and
property damage under a policy of general liability insurance, with limits of$1,000,000 single
limit or its equivalent for bodily injury, and $500,000 for property damage for matters occurring
at the Leased Premises as a result of Tenant's occupancy or use. Such policy shall name
Landlord as additional insured. Before commencement of the Initial Term, Tenant shall furnish
the Landlord with a certificate evidencing the aforesaid insurance coverage.
16.3 The aforementioned minimum limits of policies shall in no event limit the liability
of Tenant hereunder. No policy of Tenant's insurance shall be cancelable or subject to reduction
of coverage or other modification except after thirty (30) days prior written notice to Landlord by
the insurer. Tenant shall, at least thirty (30) days prior to the expiration of the policies, furnish
Landlord with renewals or binders.
16.4 The insurance shall be issued by carriers acceptable to the Landlord, and
Landlord's approval shall not be unreasonably withheld.
17. Assignment and Subletting. Tenant shall be not be entitled to assign, transfer or sublet
this Lease.
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18. ' Quiet Enjoyment. Landlord covenants that Tenant, upon performance of all Tenant's
obligations under this Lease, shall lawfully and quietly hold, occupy and enjoy the Leased
Premises during the term of this Lease without disturbance by the Landlord or from any person
claiming through the Landlord.
19. Signs.
19.1 All signs must comply with sign ordinances and be placed in accordance with the
required permits.
19.2 At the termination of this Lease, Tenant shall remove all signs placed by it upon
the Leased Premises, and shall repair any damage caused by such removal.
20. Vacating Upon Termination. Tenant covenants and agrees that upon the expiration of
the Lease, or upon the termination of the Lease for any cause, Tenant shall at once peacefully
surrender and deliver the whole of the above-described Leased Premises together with all
improvements, except trade fixtures, thereon to the Landlord, Landlord's agents or assigns unless
Tenant shall have expressly acquired the right to remain through another written extension of this
Lease.
21. Licenses and Permits. Tenant, at its sole expense, shall obtain all licenses or permits
which may be required for conducting its business within the terms of this Lease, or for the
making of repairs, alterations, improvements or additions, and the Landlord, when necessary,
will join with the Tenant in applying for all such permits and licenses.
22. Default and Reentry.
22.1 If Tenant defaults in any rent payment due under the terms of this Lease, and such
default is not cured within ten (10) calendar days after written notice from Landlord or if the
default is other than the payment of rent and the default is not cured within thirty (30) calendar
days after written notice from Landlord, Landlord may terminate this Lease and reenter the
Leased Premises.
22.2 Notwithstanding any reentry, the liability of the Tenant for the full amounts
payable by the Tenant under this Lease shall not be extinguished for the balance of the Lease or
renewal term.
23. Removal of Property.
23.1 If the Landlord, after Tenant's default, lawfully reenters the Leased Premises,
Landlord shall have the right, but not the obligation, to remove all property located therein and to
place such property in storage or to secure the property on the Leased Premises at the Tenant's
expense and risk. If the Tenant does not pay the storage cost, after it has been stored for a period
of thirty (30) calendar days or more and after giving Tenant ten (10) days' written notice of sale,
Landlord may, at its sole discretion, sell, or permit to be sold, any or all of the property at public
or private sale.
COMMERCIAL LEASE-6 DOCUMENT III.B.5
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23.2 Landlord, at its sole discretion, may retain any trade fixtures and other items of
Tenant's property, which are not removed by the Tenant at the expiration of the Lease or at such
earlier time as Tenant's rights under this Lease may be terminated for default. At Landlord's
option, title to the fixtures and other property shall be vested in the Landlord without any duty to
account or pay to Tenant for the value of the property or for any other matter in connection for
the Landlord's acquisition of the fixtures and attached property.
24, Holdover. If Tenant shall holdover after the expiration of the term of this Lease, Tenant,
shall remain bound by all of this Lease's covenants and agreements, except that the tenancy shall
be from month to month, and the monthly rent shall be the rent amount due the last month of the
immediately preceding term.
25. Nonwaiver of Covenants. The Landlord's failure to insist upon the strict performance
of any provision of this Lease shall not be construed as depriving the Landlord of the right to
insist on strict performance of such provision in the future. The subsequent acceptance of rent,
whether full or partial payment, by the Landlord shall not be deemed a waiver of any preceding
breach by the Tenant of any term, covenant, or condition of this Lease, other than the failure of
the Tenant to pay the particular part of the rent accepted, regardless of the Landlord's knowledge
of the proceeding breach at the time of the acceptance of that part of the rent.
26. Costs and Attorney's Fees. In the event it is necessary for either party to utilize the
services of an attorney to enforce any of the terms of this agreement, such enforcing party shall
be entitled to compensation for its reasonable attorney's fees and costs. In the event of litigation
or arbitration regarding any of the terms of this agreement, the prevailing party as determined by
the Court or arbitrator shall be entitled, in addition to other relief, to such reasonable attorney's
fees and costs as may be adjudged by said Court or arbitrator to be due.
27. Force Majeure. Landlord's or Tenant's failure to perform any of its obligations under
this Lease shall be excused if due to causes beyond the control of Landlord or Tenant, including
but not restricted to acts of God, acts of the public enemy, acts of any government, fires, floods,
earthquakes,epidemics and strikes.
28. Captions and Construction. The titles to sections of the Lease are not a part of this
Lease and shall have no effect upon the construction and interpretation of any part of the Lease.
29. Time. TIME IS OF THE ESSENCE IN THIS LEASE.
30. Binding on Heirs, Successors and Assigns. All the covenants, agreement terms and
conditions contained in this Lease shall apply to and be binding upon Landlord and Tenant and
their respective heirs, executors, administrators, successors and assigns, except as may be
provided to the contrary in other sections of this Lease.
31. Savings Clause. Nothing in this Lease shall be construed so as to require the
commission of any act contrary to law, and wherever there is any conflict between any
provisions of this Lease and any statute, law, public regulation or ordinance, the latter shall
prevail, but in such event, the provisions of this Lease affected shall be curtailed and limited only
to the extent necessary to bring it within legal requirements_
COMMERCIAL LEASE-7 DOCUMENT III.S.5
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32. Incorporation. This agreement represents the entire agreement of the parties. Unless set
forth herein in writing, neither party shall be bound by any statements or representations made,
and each agrees that there are no such statements or representations being relied upon in making
this Lease. No alterations, changes, or amendments to this Lease will be binding upon either
party unless such party has executed a written statement acknowledging such alteration, change
or amendment.
33. Governing Law. This Lease shall be governed by the law of the State of Idaho and
venue for any action arising from this Lease shall be in Ada County,Idaho.
34. Remedies Cumulative. The specified remedies to which the Landlord may resort under
the terms of this Lease are cumulative and are not intended to be exclusive of any other remedies
or means of redress to which the Landlord may be lawfully entitled in case of any breach or
threatened breach by Tenant of any provision of this Lease. In addition to the other remedies
provided in this Lease, Landlord shall be entitled to the restraint by injunction of the violation, or
attempted or threatened violation, of any of the covenants, conditions, or provisions of this
Lease.
34.1 The Landlord's selection of one or more remedies shall not constitute an election
of remedies to the exclusion of any other remedies.
35. Notices.
35.1 Any notices shall be effective if personally served upon the other party or if
mailed by registered or certified mail,return receipt requested,to the following addresses:
Landlord: City Clerk
33 E. Broadway
Meridian, Idaho 83642
With a copy to: Department of Parks and Recreation
33 E. Broadway
Meridian, Idaho 83642
Tenant: Randall A. Rodes
2582 Jeffery Ct
Meridian, Idaho 83642
With a copy to ReSurge Church
COMMERCIAL LEASE-8 DOCUMENT III.B.5
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Meridian City Council Meeting Agenda June 5,2018— Page 611 of 868
936 E. Taylor, suite 101
Meridian, Idaho 83642
35.2 Notices mailed shall be deemed given on the date of mailing. Landlord and
Tenant shall notify each other of any change of address.
36, Interpretation. This Lease has been submitted to the scrutiny of all parties and their
counsel; Landlord is represented by the Meridian City Attorney, and Tenant has had the
opportunity to consult with independent legal counsel of its choosing. This Lease shall be given
a fair and reasonable interpretation in accordance with its words, without consideration to or
weight given to its being drafted by any party or its counsel. All words used in the singular shall
include the plural; the present tense shall include the future tense; and the masculine gender shall
include the feminine and neuter genders.
IN WITNESS WHEREOF, the parties have set their hands this day of
2018, and state that they are authorized to execute this agreement.
SIGNATURES TO FOLLOW ON NEXT PAGE
COMMERCIAL LEASE-9 DOCUMENT III.B.5
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Meridian City Council Meeting Agenda June 5,2018— Page 612 of 868
LANDLORD:
O�PSED AUCUS
By /„ —----� ore
Mayor Tammy d eerd 2 C ilv„r w
E I IDIAN&--
IDAHO
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STATE OF IDAHO, )
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County of Ada )
This record was acknowledged before me on '}( (date) by Tammy de Weerd
and C.Jay Coles on behalf of the City of Meridian, in their capacities as Mayor and City
Clerk,respectively.
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Randall A.Rodes,President
STATE OF IDAHO )
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This reco'j,was„gpknowledged before me on—kjj i, (date) by Randall A. Rodes on
behal`f�rLr} �reh,in his capacity as its President.
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COMMERCIAL� );A i�!„;1: DOCUMENT 111.B.5
071305 1400 DO1 MT2:5366511
EXHIBIT A
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Ada County Parcel Number: S1212346725
Leased Premises: Suite 101 thereof(as depicted in the hash-marked area below), together with
Common Areas.
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COMMERCIAL LEASE-11 DOCUMENT III.B.5
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Meridian City Council Meeting Agenda June 5,2018— Page 614 of 868
Mayor Robert E. Simison
EI'IDLIANI.,*-� City Council Members:
Treg Bernt Brad Hoaglun
Joe Borton Jessica Perreault
H 0 Luke Cavener Liz Strader
July 11, 2023
MEMORANDUM
TO: Mayor Robert Simison & Councilmembers
FROM: Steve Siddoway, Parks & Recreation Director
RE: First Amendment to Commercial Lease Agreement Between ReSurge Church and
the City of Meridian
Background
Resurge Church was an existing tenant when the City of Meridian purchased the Homecourt from the YMCA. The
existing lease ends September 30,2023. This amendment extends the existing lease for 5 months,through February
2024,at which point the City will take over the space. The agreement has been prepared by the City's legal
department and agreed to and signed by the tenant.
Proposal
Approve the First Amendment to Commercial Lease Agreement Between ReSurge Church and the City of Meridian.