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HomeMy WebLinkAboutAgreement of Lease Cherry Lane Recreation 10-03-1978AGREEMENT OF LEASE AGREEMENT Nude this 3rd day of October, 1978{ by and between the CITY OF MERIDIAN{ a municipal corpor- ation of the State of Idaho, party of the first part f hereinafter called"Lessor," and CHERRY LANE RECREATION{ INC., an Idaho corporation, party of the second part, here- inafter called "Lessee." 1. LEASE.. Lessor hereby leases to Lessee the following described real property situate in Ada County, City of Meridian, State of Idaho, which property is des- cribed and set forth on Exhibit "A" attached hereto and incorporated herein. 2. TERM OF LEASE. The term of this lease shall be twenty-five (25), years, commencing on the 3rd day of October, 1978, and terminating on the 2nd day of October, 2003, both dates inclusive, unless extended or terminated i as herein provided. 3.. RENTAL. In lieu of paying any monetary rental T until the second nine -hole golf course is constructed and leased to Lessee, Lessee shall, at its own costs, and with- out any obligation, liability or indebtedness of Lessor, and within a reasonable time, operate, conduct and carry on a golf club upon the leased premises for the use and bene-- s fit of the public generally in accordance with the objects or purposes of its incorporation Lessee shall pay the sum of Six Thousand Dollars C$6,000..0.0) per year in advancer as rental. This annual payment shall first become due on the lst day of October next following the date upon which an additional nine -hole AGREEMENT OF LEASE -- P. 1 golf course shall have been constructed by or on behalf of Lessor and leased by it to Lessee herein on substan- tially the saxae terms and conditions as contained in this agreement. 4, USE of LEASED PREMISES, (a� Lessee riay use and occupy the leased premises for the purpose of operating, conducting and carrying on a golf course for the use and benefit of the public generally; build, own, operate and conduct a clubhouse restaurant, including the dispensing and sale of foods and beverages; and build, own, operate and conduct amusement enterprises such as tennis court and racquet club for the use and bene- fit ene-fit of the public generally. (b) Lessee agrees, insofar as it is economically possible, to promote and encourage use of the leased premises for the entertainment, instruction and social opportunities for children, pursuant to scheduling and rules and regula- tions adopted and promulgated by Lessee. Lessee further agrees to cooperate and work with the Recreation Committee of Lessor in developing city recreation programs for the youth of the community. 5. TAXES AND UTILITIES. Lessee shall pay all taxes and assessments upon the leased premises and upon the buildings and improvements to be constructed thereon, which may be assessed during the.initial term or any extended term of this lease, and it shall also pay all charges for gas, electricity, light, heat{ power and telephone or other communication servr ce usedf rendered ox supplied upon or in connection with -the leased property, agreding to indemnify Lessor against -any liability,- claims or damages for failure AGREEMENT. of LEASE - P. 2 to pay and dJ:scharge such taxes { utility charges r and any other expenditure incurred or assured in the constructions operation and conduct of a golf club,.and related uses, as specified in. Paragraph 4 above 6, POSSESSION.. Lessee shall be given possession of the above described property at the time of executing this Agreement of Lease in order to build, owns operate and conduct for the uses herein providedf make a master plan of the premises showing the layout of the intended improvements, and make preliminary plans and specifications for the improvements to be constructed, installed and erected upon the above described premises. 7. IMPROVEMENTS. Lessee shall have the right to make such alterations and improvements in and upon the leased premises as shall be reasonably necessary or appro- priate by which to possess and enjoy the leases premises for the uses herein provided. Lessor agrees to execute any and all easements for the purposes of constructing any utility, including, but not limited to, sewers, power, tele- phone, water and gas. All such buildings, improvements and appurtenances in, on or within the leased premises and which have been erected, installed or affixed during the term of this lease shall not be removed by Lessee without the con- sent of Lessor, it being the intent of the parties hereto that such buildings, improvements and appurtenances at the termination of this lease shall become the property of Lessor { free. Qf any and all linens and encumbrances except as assn-med by Lessor 8. MAINTENANCE,. Lessee agrees to keep and rain tain the golf course in sufficiently good condition that the AGREEMENT OF LEASE -- P. 3 Lessor is not in violation of its agreement with Nu -Pacific CoiDpany, Inc.{ dated October 3, 1978, A copy of the Num Pacific agreeTAen't is attached hereto{ and Lessee agrees to perform each obligation of Lessor contained therein. Lessor further assigns to Lessee the right of participation in its right of review and approval of the plans for the additional nine -hole golf course contained in that agreement{ together with all other rights of the Lessor., 9, DEFAULT. If Lessee shall fail to b-.ild, operate, conduct and carry on a golf course in accordance with the use herein granted and in accordance with its purposes and objects of incorporation within one (1) year from the date of this agree- ment, Lessor shall, without notice in writing, have the right to declare this lease forfeited and cancelled. After Lessee has submitted to Lessor for approval, which approval shall not be unreasonably delayed or withheld, plans and specifications for the construction and improvement of the leased premises for the purposes herein provided, Lessee shall diligently pursue such work to completion so that said golf course shall be open for business not later than the lst day of June, 1979, except as such date may be extended by the number of working days lost by reason of strikes, fire, acts of God or other events beyond x the control of Lessee. Further, if Lessee is in default of any terms and conditions of the agreement of lease and fails or refuses after thirty (30). days' written notice to perform or correct the con-" ditions -in which. aaid lease is in default f then this agreement shall be deemed terminated and forfeited and all rights of Lessee 0. in and to the leased property shall thereupon be terjninatedf subject to the provisions �of Paragraph 13 of this lease if, within five (51 years of the date of this agree- AGREEMENT gree- AGREEMENT OF LEASE - P 9 4 went{ an additional nine�ho:le golf course has not been con- structed by or on behalf of LessoxI and .leased to Lessee upon substantially the same terms and conditions as contained here- in, then Lessee may at its option terminate this lease without further obligation of either party to the other. Such addi.� tional nine -hole golf course, must be in such close proximity to the premises leased herein as to enable Lessee to operate the two as an eighteen -hole golf course. No additional ren- tal shall be payable by reason of the lease of the additional nine -hole golf course. 10. DISCRIMINATION! Lessee, in the use of the lands herein leased, will not, on the grounds of race, color, or national origin, discriminate or permit discrim- ination to any person.or group of persons in any manner. To indulge or permit such discrimination shall constitute a breach and default of this agreement and may be cause for termination as provided herein, 11. INDEMNIFICATION AND INSURANCE. Lessee shall indemnify and save and hold harmless Lessor from and for any and all losses, claims, actions or judgments for damages or injury to persons or property and losses and expenses caused or incurred by Lessee, its servants agents, employees, guests and other business invitees. However,. Lessor cove- nants and agrees to indemnify and save and hold harmless Lessee from and for any and all losses, claims, actions, indebtedness, or j ud'gments i f , after iiaak ing the improvements as provided in I?aragraph 7, peaceable possession of Lessee of the leased premises is terminated and caused by a defect in title and ownership of any portion of the leased premises as herein described{ it being understood by both parties to this lease that Lessor's title to Tract 2 is contingent upon AGREEMENT OF LEASE - P. 5 Nu -Pacific Company, Inc.��s conveying to the City of Mer- idian per the agreement between those parties dated' o f�, �� { 1978 124 COMPLIANCE WITH LAW. Lessees at its sole expense, shall comply with all laws, orders and regulations of federal, state and municipal authorities, and, at its sole expense, shall obtain all licenses or permits which may be required for the conduct of its business within the terms of this lease, or for making of repairs, alterations, improve- ments or additions, and Lessor, where necessary, will join with Lessee in applying for all such permits. 13. SURRENDER AND TERMINATION. Lessee shall, on the expiration, or the sooner termination as herein provided, of this lease, surrender to Lessor the leased property, including all buildings, replacements, additions and improve- ments constructed or placed by Lessee thereon, with all equipment in or appurtenant thereto, free from all liens, encumbrances and subtenancies and in good condition and repair, reasonable wear and tear excepted., Upori termination of this lease, Lessee, its suc- cessors and assigns, shall at all times execute, or cause to be executed, all necessary documents required to surrender leased property, including all buildings, replacements, addi- tions and improvements constructed or placed thereon by Lessee, its successors and assigns, with all equipment in or appurtenant thereto, 14, I\$$ IGNMENT ANIS $UBLETTI.NG , Lessee shall not assign { transfer or sublet th-J's lease, or any portion thereof f or any privilege hereunder, either voluntarily or involun- tarily, without the prior written consent of Lessor, which AGREEMENT OF LEASE - P. 6 consent shall not be withheld unreasonably; except that Lessee may assign its right, title and interest in and to this lease agreement with right of reassignment, to its lender and to a Meridian local development company. 15. RENEWAL. Lessee shall have the option to renew this lease, on the same terms and conditions, for an additional term of thirty (30) years, provided Lessee is in full compliance with. all of the terms of this lease at the time notice of intent to renew is given Lessor. Such notice of intent to renew shall be in writing and mailed to Lessor at the City Hall, Meridian, Idaho, on or prior to April 1, 2003. At the conclusion of such renewal term, Lessee shall have the further right to renew this lease, on terms and con- ditions agreeable to each party hereto, for successive addi- tional terms of ten (10) years each, provided Lessee is in full compliance with all of the terms of this lease at the time notice of intent to renew is given Lessor. Such notice of intent to renew shall be in writing and mailed to Lessor at the City Hall, Meridian, Idaho, on or prior to six (6) months prior to the end of•any term. 16.. GREENS FEES, Lessee agrees that it will not alter the greens fees charged the public without first con- sulting the authorized representatives of Lessor, it being the intent of both parties to the lease that greens fees for the leased premises shall at all times be competitive with similar public facilities. 17. BINDING EFFECT. This Agreement of Lease is binding upon the successors, assigns and subtenants of both parties.. AGREEMENT OF LEASE -- P. 7 IN WITNESS WHEREOF{ the parties have caused this Agreement of Lease to be executed by their duly authorized officers the dad' and year first above written CITY OF MERIDIAN ATTEST; l BY r CI CL RK MAYO "LESSOR" .ATTEST: It - - SECRETARY CHERRY LANE RECREATION, INC., i 31 PRESIDENT "LESSEE" STATE OF IDAHO } } ss. COUNTY OF ADA } On'this day of , 1978, before me, the undersigned, a Notary Public in and for said State, personally appeared DON M. STOREY, known to me to be the Mayor of the CITY OF MERIDIAN, whose name is subscribed to the with- in instrument{ and acknowledged to me that he executed the same on behalf of the City of Meridian{ and was duly authorized so to do. IN WITNESS WHEREOF(. I have hereunto set my hand and affixed my official seal, the day and year in this certificate first above written. N-011ary Pub c for State o f Idaho, Res'i.ding a6t Meridian, zdaho. AGREEMENT OF LEASE -- P . 8 STATE OF IDAHO I I ss. COUNTY OF ADA On this' r day of`- 19 7 8 { before Me r the unders i�gned'r, a " Notary, Puh.lic in and for said State, personally appeared WALLACE D. LOVAN, known to me to be the President of CHERRY LANE RECREATIONI, INC,{ whose name is subscribed to the within instrument, and acknowledged to me that he executed the same on behalf of the Cherry Lane Recreation{ Inc,, and was duly authorized so to do, IN WITNESS WHEREOF,. I have hereunto set my hand and affixed my official seal, the day and year in this certificate first above written* IUtg -."f d. C AO�M. &p. deam- 7h 14o ry Pub c for Stat of Idaho Residing rt Vis,, Idaho. AGREEMENT OF LEASE - P. 9 Apr J-U"B ENGINEERS. IN `1403 Franklin Road - Bolsa, Idaho 83705 Project: 7543-18 Date: September 8, 1977 DESCRIPTION FOR CHERRY LANE VILLAGE GOLF COURSE NO. 11 A PORTION OF THE N 1/2 SE 1/4, SECTION 3, T.3N., R.1W., B.M., MERIDIAN, ADA COUNTY, IDAHO A parcel of land lying in a portion of the N 1/2 of the SE 1/4 of Section 3, T.3N., R.1W., B.M., Meridian, Ada County, Idaho and more par- ticularly described as follows: Beginning at a point marking the Northeast corner of the said SE 1/4 of Section 3; thence South 61°14`35" West 499.02 feet to a point, also said point being the REAL POINT OF BEGINNING; thence South 31840'00" East 100.00 feet to a point; thence South 54°04'00" West 180.00 feet to a point; thence South 66°00'00" West 200.00 feet'to a point; thence South 83°30'04" West 433.26 feet to a point; thence South 79845'40" West 260.25 feet to a point; thence South 57°00'00" East 20.00 feet to a point; thence South 83°15`00" West 400.00 feet to a point; thence South 65823`33" West 78.68 feet to a point; thence North 19036'38" West 140.00 feet to a point; thence North 69°00' 00" East 15.08 feet to a point of curve; thence Northeasterly along a curve to the left 200.57 feet, said -curve having a central angle of 33818' 35", a radius of 345.00 feet, tangents of 103.21 feet and a long chord of 197.76 feet bearing North 52020143" East to a point of ending of curve; . thence South 54818135" East 73.51 feet to a point; thence North 65°00' 00" East 78.00 feet to a point; thence South 57°00'00" East 20.00 feet to a point; J'U—B ENGINEERS, IN 5903 Franklin Road - Boise, Idaho 83705 Project: 7543-18 Date: September 8, 1977 Page: 2 -- Cherry Lane Village Golf Course No. 11 thence North 77°00'00" East 325.00 feet to a point; thence North 82°00'40" East 390.00 feet to a point; thence North 76°30'04" East 305.00 feet to a point; thence North 65°15'00" East 145.40 feet po the point of beginning, comprising 5.03 acres, more or less. Prepared by: J--U-B ENGINEERS, Inc. EWW/.TAP : na I Gary L. Rodenspiel, L.S. c FA Project; 7543-18 + Date: September 8, 1977 DESCRIPTION FOR CHERRY LANE VILLAGE GOLF COURSES 12 & 13 A PORTION OF THE E 1/2 SE 1/4, SECTION 3, T.3N., R.1W., B.M., MERIDIAN, ADA COUNTY, IDAHO A parcel of land lying in a portion of the E 1/2 of the SE 1/4, Section 37 T.3N., R.1W., B.M., Meridian, Ada County, Idaho and more particularly described as follows: Beginning at a point marking the Northeast corner of the said E 1/2 of the SE 1/4 of Section 3; thence South 36x05'29" West 623.99 feet to a point, also said point being the REAL POINT OF BEGINNING; thence South 38°00'00" West 305.00 feet to a point; thence South 32x00_'00" West 205.00 feet to a point; thence South 29°45'00" West 175.00 feet to a point; thence South 8°30'00" West 220.00 feet to a point; thence South 0°00'00" East 400.00 feet to a point; thence South 87°00'00" East 185.40 feet to a point; thence South 1°00'00" West 194.39 feet to a point; thence South 21°15`00" West 109.02 feet to a point of curve; thence Southeasterly along a curve to the left 207.80 feet, said curve having a central angle of 158'45'00", a radius of 75.00 feet, tangents of 399.79 feet and a long chord of 147.43 feet bearing South 79°22'30" East to a point of tangent; thence North 0°00'00" East 40.00 feet to a point; thence North 22015'00" West 110,00 feet to a point; thence North 6°00.'00" East 324.00 feet to a point; thence North 88°00'40" West 145.00 feet to a point; thence North 6 30'00" East 150.00 feet to a point; lir .i. •'7 � i r ' -� : J --U~ B E=-NGINEERS, 1N '903 Franklin Road - Boise, Idaho 83705 Project: 7543--18 Date: September 8, 1977 Page: 2 -- Cherry Lane Tillage Golf Courses 12 & 13 thence North 19°00'00" East 180.00 feet to a paint; thence North 3°00'00" East 260.00 feet to a point; thence North 35°30'00" East 250.00 feet to a point; thence North 22°45'00" East 265.00 feet to a point; thence North 65045100" West 50.00 feet to the point of beginning, comprising 4.96 acres, more or less. Prepared by: J -U -B ENGINEERS, Inc.", D 2 a 0� ROO EWW/JAP:na Gary L. Rodenspiel, L.S. 1 c J };:: r J ,U-- B ENGINEERS, IN '03 Franklin Road - Bolsa, Idaho 83703 Project: 7543-18 Date: September 8, 1977 DESCRIPTION FOR CHERRY LANE VILLAGE • GOLF COURSES 14 THRU 17, A PORTION OF THE SE 1/4, SECTION 3, T. 3N. , R. 1W. , B. M. , MERIDIAN, ADA COUNTY, IDAHO A parcel of land lying in a portion of the SE 1/4 of Section .3, T.3N., R.1W., B.I- , Meridian, Ada County, Idaho and more particularly described as follows Beginning at a point marking the Southeast corner of the said SE 1/4 of Section 3.- thence ;thence North 43°59'32" West 622.10 feet to a point, also said point being the REAL POINT OF BEGINNING? thence South 86°28'00" West .143.88 feet to a point; thence South 83°08'00" West 328.98 feet to a point; thence North 85°22' 00" West 165.85 feet to a point; thence North 73°58'00" West 145.93 feet to a point; thence North 62°40'04" West 156.09 feet to a point; thence North 52°38'00" West 154.62 feet to a point; thence North 67°52'04" West 168.57 feet to a point; thence North- 58°10' 00" West 89.42 feet to a point; thence North 28037'00" West 100.04 feet to a point; thence North 14°00'00" West 125.00 feet to a point; thence North 87°19'00" West 125.00 feet to -a point; thence South 35'00'00" West 78.00 feet to a point; thence South 16030' 00" West 110.00 feet to a point; thence South 35'00'00" West 156.91 feet to a point; thence South 61x43'00" West 315.50 feet to a point; thence South 49°21'00" West 157.00 feet to a point; J—U—B ENGINEERS, IN Kn03 Franklin Road - Boise, Idaho 83705 Project: 7543-18 Date. September 8, 1977 Page: 2 -- Cherry Lane Village Golf Courses 14 thru 17 thence South 80°18'00" West 80.78 feet to a point; thence North 37°47'00" West 79.68 feet to a point; thence North 0°09`00" East 171.92 feet to a point; thence North 32°50'00" East 231.74 feet to a point; thence North 30 03'39" East 225.00 feet to a point; thence North 44°15'00" East 137.90 feet to a point; thence North,54'45'00" East 283.52 feet to a point; thence North 41°11'55" West 106.78 feet to a point; thence South 66°45'00" West 165.25 feet to a point; thence North 57°12'00" West 68.36 feet to a point; • thence North 29°00'00" West 92.75 feet to a point; thence North 61000'00" East 86.26 feet to a point of curve; thence Northeasterly along a curve to the left 93.20 feet, said curve having a central angle of 23°43'56", a radius of 225.00 feet, tangents of 47.28 feet and a long chord of 92.53 feet bearing North 49008'02" East to a point of ending of. curve; thence South 58°27'00" East 100.63 feet to a point; thence North 81°34'29" East 389.33 feet to a point; thence South 44°47'48" East 41.29 feet to a point; thence South 20°30'00" East 80.00 feet to a point; thence South 13°53'29" West 148.29 feet to a point; thence South 11°15'00" East 25.46 feet to a point; thence South 43°59'35" East 152.65 feet to a point; thence South 69°30'00" West 20.00 feet to a point; thence South 1°00'00" West 100.00 feet to a point; ti c J--U-B ENGINEERS, IN l Franklin Road • Boise, Idaho 83745 Project: 7543-18 ]date: September 8, 1977 Page: 2 -- Cherry Lane Village Golf Courses 14 thru 17 thence South 19°30'00" East 145.04 feet to a point; thence South 61°35`49" East 650.00 feet to a point; thence South 78°30'00" East 250.00 feet to a point; thence South 83°06'42" East 328.97 feet to a point; thence South 4'30'00" Eas t 34.77 feet to the point of beginning, com- prising 17.32 acres, more or less. Prepared by: J -U --B ENGINEERS, Inc. Gary L. Rodenspiel, L.S. EWW/JAP:na 'J--U—B ENGINEERS, 1f\ Ftankiin Road - Boise-, Idaho 83705 Protect: 7543--18 Date: September 8, 1977 Revised: April 14, 1978 REVISED DESCRIPTION FOR CHERRY LANE VILLAGE LAKE AND CLUBHOUSE AREAS AND GOLF COURSES 10 AND 18 PORTIONS OF THE S 1/2 N 1/2 AND N 1/2 S 1/2, SECTION 3, T.3N., R.1W., S.M., MERIDIAN, ADA COUNTY, IDAHO A parcel of land lying in portions of the S 1/2 of the N 1/2 and the N 1/2 of the S 1/2 of Section 3, T.3N., R.1W., B.M., Meridian, Ada County, Idaho and more particularly described as follows: Beginning at a point marking the Northwest corner of the said N 1/2 of the S 1/2 of Section 3; thence South 89°25'06" East 2,077.73 feet along the Northerly boundary of the said N 1/2 of the S 1/2 of Section 3 to a point, also said point being the REAL POINT OF BEGINNING; thence South 0°29'44" West 335.18 feet to a point; thence South 51°45' 00" East 580.04 feet to a point; thence South 35'00'00" East 285.33 feet to a point; thence South 22°15`00" West 60.05 feet to a point; thence South 43'58'10" East 238.75 feet to a point; thence South 29'00'00" East 110.00 feet to a point; thence North 61'00'00" East 81.19 feet to a point of curve; thance Northeasterly along a curve to the left 147.14 feet, said curve having a central angle of 48°10'28", a radius of 175.00 feet, tangents of 78.23 feet and a long chord of 142.84 feet bearing North 36°54'46" East to a point of ending of curve; • thence North 56°30`00" West 151.38 feet to a point; thence North 41030'00." West 203.92 feet to a point; thence North 17°15'00" West 94.14 feet to a point; thence North 22'15' 00" East 147.00 feet to a point; thence Ncrth 65°50'00" East 45.00 feet to a point; N r J -U -B ENGINEERS. INC. -j Franklin Road - Bal:a, Idaho 83705 Proj ect: 7543--18 Date: September 8, 1977 Revised: April 14, 1978 Page: 2 -- Cherry Lane Village Lake & Clubhouse Areas and Golf Courses 10 & 18 thence South 87°20'00" East 78.40 feet to a point; thence South 68'00'00" East 61.48 feet to a point; thence South 71x33'25" East 88.05 feet to a point-, thence South 60x00' 00" East 108.33 feet to a point of beginning of curve; thence Northeasterly along a curve to the right 139.32 feet, said curve having a central angle of 25°35'19", a radius of 311.95 feet, tan- gents of 70.84 feet and a long chord of 138.16 feet bearing North 56x12'20" East to a point of tangent; thence North 69'00'00" East 115.08 feet to a point of curve; thence Northeasterly along a curve to the left 125.75 feet, said curve having a central angle of 24025'22", a radius of 295.00 feet, tangents of 63.84 feet and a long chord of 124.80 feet bearing North 56°47'19" East to a point of ending of curve; thence North 44°00'00" West 79.63 feet to a point; thence North 67x45'04" West 160.00 feet to a point; thence South 65050'00" West 244.67 feet to a point; thence North 50°30'04" West 114.35 feet to a point; thence North 44°00'00" East 90.40 feet to a point; thence North 17'00'00" West 175.00 feet to a point; thence North 12x00' 00" East 280.00 feet to a •point; thence North 77°30'04" West 170.00 feet to a point; thence South 68°40'00" West 265.00 feet to a point marking the Northeast corner of the SW 1/4 of the said Section 3; thence North 75°30'00" West 194.00 feet to a point; thence North 40°00' 00" West 40.00 feet to a point; thence South 75°59'31" West 70.00 feet to a point; i�. is.,• ' . . w k r. i 1 � � .. [ .• 4 .. 1 � F l i j 1 .'� d ^� s Yf fir-: .. • e i. F' kJ-U-B ENCiNEERS, INC, 103 Franklin Road - Boise, Idaho 83703 Proj ect: 7543--18 Date: September-8, 1977 Revised: April 14, 1978 Page: 3 -- Cherry Lane Village Lake & Clubhouse Areas and Golf Courses 10 & 18 thence South 25000'00" West 64.19 feet to a point on the said Northerly boundary of the N 1/2 of the S 1/2 of Section 3.- thence ;thence North 89025'06" West 254.51 feet along the said Northerly boundary of the N 112 of the S 1/2 of Section 3 to the point of begin- ning, comprising 17.75 acres, more or less. Prepared by: - J--U-B ENGINEERS, Inc. (�kER E D 144, 2 • �� 0 �r t. R00�,t� Gary L. Rodenapiel, L.S. EWW/ JAP : n a ti OCT A 1978 AGREEMr,,NT . rr� AGREEMENT MADE 9-111I S clay of �f 1978, between the. CITY OR MERIDIAN. Z DA.1IO r z municipal corpora-- tion, :hereii-i referred tO as City and NuPACTFTC COMPANY, an Oregon corporation' hav:ing', its principal place of 1)us ines s at Portland, Oregon, herein .referred to as Grantor-. Granter is the owner and option holder of, certain real property in thy= City of Mor. z dian, Ada County, Idaho, the legal. description of which i.,'; attached hereto as Exhibit A. Said real property is currently k. Bing developed, an�I plana for further• development are eontempla toy 1, the entirety of which shall be known as Cherry Lane Vi.l lzi cue . As a .part' of and within Cherry Lane Vi I l age the Gran to-,.� has, substantially completed the construction of a nine -{pole Cita:'_ F course, and a second nine --hold extension on sri id goIJE course is planned for'. later development. i ty: and Gr an icor ��a ve c xe cuted a A��`r�C� �AN�7U�l OF UND�:�'- STANDING, a - gopy of which is attached hereto as Exhibit D, -under which the coordination and design of the initial nine holes of the g.o 'f course, along with an under; tandinc; as to the transfer of the ownership and maintenance of sucli as- a municipal goif course, is --set forth. Ulu I t� # L ho NIEVOPAPJ AIM 01" (IN t)F'FR ±'VAN D.1 NC, tho Grantor, -has submittcd. the plans for the- first nine ho les of the ` golf cour.sp_ oto the City, and in t',xrn the City has. approvesuch plans�' fOr' construction and, eventual transfer. �h City ��zZ�i Grrantor now wi r�lx to on t.or in t.� this Agreement for the transf.or of all of thc, pr �.,. �r:.. �uture co 1f . ..' : course property, an'.' ..i_ Li13. . ,et forth the i.- : ghts and :obl'igt t ionti, 3: under. such trans f (yr: of ownership. r .. .—. iy F+Y•�•.w Mf`MK .•�t/•FNyN Yom_. ,.ywr.... .. ti.•`.., - _ .,,,rr ..,..•ar y...+.f. r -.....r,.. ,-..rte.. .. , .....ry..ti,t....... .y. rMwVan.wa,�/r{!MFy1+MMaWi.L.L :...'ri•r•, iry;:Y�i1li.y7{ golf course propert1 7to be owned and maintained by the City;. and further, together with the initial nine holes, shall be owned and maintained as an eightePri=hole public municipal golf course. Second Nine Tloles-----Planning. Grantor shall submit drawings and plans to the City for the construction of the additional nine h..oles. within thirty (30) days of its receipt of these drawings and plans, City shall review them and approve the drawings and plans in whole or in part. In the event of partial approval, and within such thirty�3� da. ' 3 y period, the City shall submit to Grantor written proposals for -changes in the drawings and plans. within thirty ( 3D) days of the submission of these, proposals for changes. the Grantor shall review them and approve the proposals of the City in whole or in part. In the event of Grantor's partial approval of the proposals for changes, the matters which the parties are uhable to agree upon shall bre submitted to JUB 'Engineers who shall review the unresolved matters and make a final decision. Within a reasonable time thereafter Grantor shall enter into a contract, in the manner required by law and at no cost or liability to the City, for the construction and development of the rem aixider of the golf' course in accordance with the drawin g4s and plans. Sr-coiicl Nine T1C)1 eP,.. - Tn i t 7 ,-j 1. Managomrnt . • Froin the period of initial construction of the addition- al got -f course property until the completion of the second cutting of said property, Grantor shall maintain and manage the additional golf course property. Upon completion of the second cutting of the additional golf course property and before the property is deeded to the City, JUII Engineers shall make a final inspection -3- to insure that, the golf course meets the construction specifi- cations. All corrections which are deemed to 1-)e mnecessary to bring the golf course inta.r..canlormance with the construction specifications shall be made and paid for by Grantor prior to the transfer of the golf course to the City. In the event JUB Engineers specifics that a defect exists in the construction which does not substantially impair r. the use of the property as a part of the golf course the transfer of title shall, occur and Grantor shall immediately correct such defect at no cost to the City, JUB Engineers shall be the final and binding arbitrator with regard to any dispute or determi- nation they make under this Agreement. Contingency. Nothing in this Agreement shall be cons trued in, any manner as to compel the Grantor to design and/or construct such additional nine holes for the golf course. Provided, however, that if Grantor exercises its final option for the purchase and development of the property encompassing Cherry Lane Village, as described in Exhibit Ar it shall be under an absolute obligation to construct and transfer sand second nine holes. Furthermore, if such second nine holes are designed and constructed by Grantor, at.any thMe in the future, and provided that City is not in defau. It; .under. the terms of this Agreement, this Agreement shall so bind Grantor to transfer to the City, and the City to accept, such property. Management and Maintenance Obli aticn. i Following the transfer to the City of any or' all of the property under this Agreement the City shall. be wholly and -coir►- pletely responsible for the management and maintenance of the golf course property, including any buildings constructed; hereon, at no expense to the Grantor. As such the City may contract with any third p4rty or parties for such management and/or mainte- nanco-, but shall remain solely responsible to the Grantor for t such and the Grantor magi,":.. -1-'o =exclusively to the Cit for Y any breach or default. Furthermore, the city agrees,,, -at no cost to the -Grantor, that Such management and maintenance of the property shall be' at a standard of quality consistent -with similar public municipal golf courses throughouttho country. In t1iat regard the city will cooperate with some individual, golf agency or association, to be agreed upon by the parties, for, the inspection and review of the management and maintenance of the, golf course, and to make certain, recommendations to insure that such aforementioned standard of quality is met. Such inspection and review shall take place from time to time as deemed necessary by. those con- ducting the review, but shall, not 6ccur less than annually. �In Y the event the parties cannot reach an agreement on the id.enti- fication of the alternative individual, agency or association, BOB BALDOCK AND SONS, the architect primarily responsible for the design of ,the golf course, shall make such designation and it _}.. shall be binding upon the parties unless otherwise mutually agreed. i r ' The City acknowledges that failure to maintain the golf couroe,-property at the above set forth standard of quality may Y - have a direct and detrimental effect upon the value of the ' Gr_ i -rotor; s urr_oundinq Pr. nporty . AF, a consoc;uonce Grantor retains the right to have the golf course maintained at the standard'of quality.so determined. Any recommendation by such designated individual, agency or association with respect to management and/or maintenance shall. be donsidered necessary to maintain the standard of quality intended by this Agreement unless the.parties 5- mutually agree otherwise, and any failure on the part of the City to so maintain the property, following notice of such by the Grantor, may be deemed �-i kr_ach of contract by the Grantor. After Providing.notice to the City that such. maintenance is below the designated quality, the Grantor may, a set forth below under' 'the section, entitled " Do f ault ", enter upon the property to undrr�- e take any such maintenance activity; or, may declare the City in - breach of contract, in which case the title to thero ext shall. p p Y be revested in the Grantor. During the period the City is responsible for the main- tenance and operation of the golf course under the terms of this Agreement, the City shall obtain and maintain at their sole expense, a policy of liability insurance for the joint and separate protection�of the City and Grantor in the minimum amount r of $500,000 for bodily injury or, death of any one person and $1,000,000 for bodily injury or death of two or more persons in r , any one accident, or event, and in the minimum amount of $200.,000 for damage to property resulting from any one accident The. City shall also carry fire insurance on all structures in the amount that it would cost to replace such structures. Certified copies of the above --described insurance poli4.Os and all certificates thereof shall :be furnished to the - Grantor. Term. Except as provided in the section entitled "Assignment and Repurchase --Terms" herein, the term, of this Agreement shall be for as long as the Grantor or any transferee'of Grantor, owns F, any property in the residentipl development known as Cherry Lane Village in.Meridian, Ada County, Idaho or any property aririex d or {, contiguous to Cherry Lane Village, and may, b terminated a'n titn y s.' earlier by mutual written - consent of the parties.: Forur os es Pp Of this, section, no road running within the properties p shall act J to render any of the properties noncontiguous. Waiver of The waiver by a party of any broach of any term co,n- tained.in this Agreement shall not be deemed to be a waver of such torm for any subsequent or continuingbreach reac�� of the same or any other term. Default and Breach of Contract. Should the City fail in any respect to com1 p y with the terms of this Agreement with respect to the management and main- tenance 'cif the golf course property as set forth above • and further, should the Grantor notIf. the Cit ' Y y �.n wracting specifying the default assorted; and, should the Cit fail �' to take proper action to cure such default within thirty (30)days thereafter, ter, the -Grantor shall, at .its sole discretion, retain the right to enter onto the golf course property to undertake proper. mainte- nance, and/or may declare the City in broach of its contract and demand .immediate return of the title to all suchr prapext� theretofore conveyed to the City under the terms of this Agreement. g ment. If the Grantor declares such breach of contract the Cit shall immedi- ately ' City .mmedi-- � ately convey the Property, free and clear of all encumbrances, to the C: a.n tor. ', and any obligation on the part o f Grantor to trans - f er a��x.�. f ur th.erp - . pra erties under this Agreement not theretofore transferred shall be extinguished. mod 1 f 1 This Agreement:, may only be amended or modified by mutual ,written consent of both parties. .nuildin s. Nothing in this Agreement shall be' construed or act t to r limit the City's right to canstrust, own and or / operate, or allow such construction, ownership and/or aratio p , n of any buil' ing on the._: s ub j ec t property --in the area a l l -o cater for such an , -7- the recorded plat---for any purpose consistent with the ownership, operation and maintenance of the golf course. This right shall include, but not be the construction.. and operation of maintenance buildings, clubhouse facilities, restaurant, pro shop, driving range, or ether recreational facility. , Assignment and Re urchase--Terms . Except as provided above in the section entitled "Management and Maintenance", unless agreed to in writing by- Grantor--or any transferee of Grantor---the City may not assign, t gift, sell, hypothecate or in any manner transfer title of any of the property subject to this Agreement; and, furthermore, may not use, operate or maintain such property for primarily any use other than a. public municipal golf course during the term of this. Agreement. Following such period of time and for fifteen years thereafter the Grantor shall have a richt of First refusal to ' purchase any or all of such property from the City if the City chooses to 'sell or transfer such property in any manner. The purchase pr ice shall be determined by any verified bona fide offer to purchase .by an independent third party or at the then i current market price. based upon the Grantor's MAI appraisal. Grantor shall notify the City of its intent to exercise such right of first refusal within suety (60) days of notice and verification of such offer or receipt by Grantor of such appraisal. Grantor may ass i-gn any or all of, its rights `and obli- gations under this Agreement, and notice of such, shall be sent to the City. This Agreement shall be binding up6n 2a'l1 adminisw trators, 'successors., heirs, assigns and traxisferees of any kind of the parties. r�.r was. ,.r-..-.-ax+nwrrr. rr.• •,4i .• ... .'1 '. -rte i Notices. Any notice required under this Agreement given by one party to the other sha11 be `.1 n, writing and shall be deemed given when dolivcred personally with a copy by certified mail or when mail cid by certified mail to the following addresses, or other addresses the parties so designate in the manner set forth. in this section; i To Grantor: NuPacific Company, Inc. P. G. Box 1847 Bellevue, WA 98009 To City: Clerk of. the City Council City of Meridian Meridian, ID 83642 Attorne ' S F ees . In any action, suit or proceeding to enforce this Agreement or by reason of breach thereof, the prevailing party shall be Entitled to recover reasonable attorney's fees to be fixed by the court, including fees on appeal. Le al Description. If legal description or any exhibits to this Agreement are erroneous, -incomplete, or not attached at- the time, of execu- tion of this Agreement, it is understood and agreed that it is the intent of the Grantor to transfer property as afore described within th e plat of Cherry Lane Village in Meridian, Idaho encompass- ing ncompassing up to an eighteen hole golf course and appurtenant property. Such legal descriptions or exhibits may be attached at any time during the life of this Agreement. WI1olc_Lgr. oIII e11 [� . Except as -otherwise stated, all�of the terms and con- ditions of this Agreement between the parties hereto are' -stated herein and no representations or inducements have been made by either,,party other than those herein set forth. 4 r. 9- IN WITNESS WIIEREOF, the Grantor -has caused this docu- ment ocu-ment to be executed In its name by its proper and fully authorized officers, and the City of .-eridian has Caused the same to be duly executed by its authorized representatives, the date and�year first above _written . r GRANTOR:. NuPACIFIC CCMPA�V., INC. ►t 1� , By: J 4 s TA'P'E 'OF c. �" �--� } j t'e . � County of j On this jq� day of ,�w��. �� 1975. before me personally appear do/� ;- r to me known "Co be the �� , o NuPAY FIC COMPANY. that executed the within and -foregoing instrument, and acknowledged the said instru- ment to be the free and voluntary act and domed of said corporation for the :uses and purposes therein mentioned, and on oath stated. that he/sh;q was authorized to execute sAid instrument. IN WITNESS WHEREOF, I have hereunto ' set my hand and official seal the day and y cr irsta ve rite . J�jJf� Y F of ry P xbli i rind for the state_, of Residing at CITY 4F MERIDIAN, IDAHOf a nzc'pal Corporation C: rk of the Cit Council _10- r r ; EXHIBIT_ B MEMORANDUM OF UNDERPTANDING s r `This Memorandum of Understanding b and between ' Y NuPacif1c Company. Inc. (hereinafter referred to as"Develo er" p ) . and .the city of Meridian, Idaho (hereinafter referred%'•to as "Cit «_ s - , Y �y intended to set forth the,understanding between the parties relative to _.. the design construction, ownership and maintenance of a 'to be constructed on Developer -'s property in Meridian Idaho - ► o known as Cherry Lane village. The Developer intends to design and construct a nine hole golf course as a part of its Cherry Lane village Development in Meridian, Idaho. The entire cost of such construction, design and �3 uction, through the second cutting of such golf course will be born by the Developer. _ Upon completion of the second cut of the golf course the Developer will deed the off course g property over to the City for its ownership and maintenance as a public municipal golf course.. The City -intends to maintain the course'at its own expense and at a standard of quality consistent with similar -courses thro . ughou the country. In that regard the City will cooperate with a certain ` 9.i►iii golf agency or association, to be designated at a later dates to insure that the course is inspected and maintained at such afore-- . mentioned standard of quality. The configuration and design of the golf :.course has been t . dictated ..by .the .placement of." --the lots within the d { • - • � - y development and approved by the City. The Developer intends to submit to the city.,. the drawings and plans for`•,physical construction of the.'golf courser"'� within the .near future. The City respects the Developer s con-.' struction o -- struction schedule and therefore agrees to -review and 'a . pprove :the plans and designs within ten days following their receipt p In the event the City wishes to suggest construction c:.)��-►r�t� err y n t,hr' ()()If coijr•!an F;u(,), ('111�r�t w7 be submi t tod prior to ,I the end of the ten dreview � days period. The developer may then r, either incorporate such changes into the laps ' P or object. If objection is made by the Deve to er p to suggested changes by the City, the matter will then be submitted- tQ JUn Engineers for their determination. JUB shall be the final ar'b' a.trator for any such change suggestions which are objected to b the Y Developer., Upon completion of the second cuttingof the golf course,, and before the property is deeded to the Cit JUB City, Engineers shall make a final inspection to insure that the course meets the con- s truction specifications. JUB slid l 1 be the final 1 ins - . inspector prior to such deeding over by the Developer, 'and the City will not be respon- sible for maintenance until any defects are corrected �by the Dev- eloper to JUB Engirieer's satisfaction or r to the specl,f cations of the design. Following the City's assumption of the golf 'course e awner- ship the Developer will retain the right to have _ the course main-- tained its proper -standard ofua l it q y and well be allowed to enter on to the property to undertake such maintenance at the City's expe.ose in the event the City fails to do so, following reasonable notiQP of Developer's intent to undertake uch a 4 S action, It is both Parties intent that this mem vrandum of under- Standing act as the agreement between the parties unti 1 such time as a formal contract document is executed.b, them NuPaci f is Company r Inc. aBy • Date: �"� t J,., U— B ENGINEERS, INC. 03 Frank#tn Road • 6046, Idaho 63705 T Project: 7543--06-1 Date: September 3, 1975 Reprised: October 71 1977 Revised: October 149 1977 Revised: March 1, 1975 EXHIBIT A REVISION III DESCRIPTION FOR CHERRY LANE PLANNED COr-tMuN ITY. OF DENT & L'ii1R J.\ a BARNEY ANDr,f �7� IES] W, 6 LOIS J, FULLER i...+LER PROPERTY EXCLUDING FULLER'S AND BARNEY'S HOUSE PROPERTIES A PORTION OF SECTION 319 T. 3N. , Rv l.W. , B . M iw , ADA COUNTY, IDAHO; nd lying in Section 3, T. 3N. , R. 1W. , B.M. , Ada County, Idaho, A parcel of la y g and mere 'particularly described as follows: • iron in marking the Southeast corner of the SE 1/4 of the Beginning at an p g said Section 3, also said point marking the intersection of Cherry Lane and Ten Mile Road; . thp.nce. North 89"16'13" West 210.00 feet along the Southerly boundary o / the54 of Section 3, which is also the centerline of Cherry Lane, to w, , . ��.d S E 1 an iron pin, also said point being the REAL POINT OF BEGINNING; ; thence continuing North 89 ° 16' 13" West 2,439.62 feet along the Southerly id SE 1 4 of Section 3, which is also the centerline of :boundary of the said l 1 • arkin the Southwest corner of the said SE 4 f "Cherry Lane, to an iron pi m g of Section 3; thence North 89145 ' 1" ,Test 334.63 feet along the Southerly boundary of the Sw 1/4 o f the said Section 3, which is also the centerline of Cherry Lane, to an iron pin marking the Southwest corner of the E 1/2 of the F 1/2 of the SE 1/4 of the said SW 1/4 of Section 3; a 1 1� .03 feet along the Westerly boundary of thence North 0 28 53 East 1,329 g the said E 1/2 of the E 1/2 of the SE 1/4 of the SW 1/4 of Section 3 to a corner of the said E 1/2 of the E 1/2 of the SE 1/4 Point marking the Northwest cor of the SW 1/4 of Section 3; 8" West 330.12 feet along the Southerly boundary of thence North $9 1.9 � the E 1/2 of the NE 1/4 of the said SCS] 1/4 of Section 3 to an iron pin marking the Southwest corner of the said E 1/2 of the NE 1/4 of the SW 1/4 of Section ; r i� feet alongthe Westerly boundary of = thence North o 30 11 East 1,334.22 he NE 1./4 of the SW 1/4 of Section 3 to an iron the said E 1/2 of t pin; _. thence North 8855 '29 " 1 977.76 feet to an iron pin on the Westerly West , boundary of the N« 1/4 of the said Section 3; . 1 2 3 MI:M,+RANUUM UI' 4 This o Mewc„.,ii,l,�i❑ <,I tobur' 5 1978, is entered G i)rt.o between the hart i,:: l ur t ha: (xu ►,use of giving public notice'':;.';, that a lease has keenr.,,•uuteJ hutwi:en the 7 parties in accordance;'• with the general provis.iuns below. 8 9 1. .Parties. The City of Meridian, a ❑iunicipal JO corporation, as Lessor and Churry Lane RUC,'Caltion, III(:., an Idaho corporation, as Lessee. I1 -- • 12 2. Term. Twenty-five (25) yearn with an option tot,-(,; renew for thirty to be negotiated 749 13 Y (30) years and sucr.ussive ul,tiuns/of ten (10). 14 years beginning October 3, 1978. ' ' ,15 3• Property'Affected. Part- of :vection 3, Township 16 3 North, Range 1 West Boise Meridian in Ada County, Idaho, as is more 17 particularly described on a deed from Nu Pacific: Company, an Oregon corporation, to the City of Meridian, Idaho, a 18 19 municipal corporation, ret;orded in the records of Ada County, 20 Idaho as Instrument No. 21 4. Consideration.. For good and valuable consideration. 22 CIT MPRIDIAN . 23 b A fsT 3' 2 . -.— . 24_x_ -- May r 25 City Clerk 2 `„ CHERRY LANE RECREATION, INC. y t: c r. �a :i:�:`•::yi.; t: P r e s ire n t 15 i ,,.,r, .Y•: .'MEMORANDUM OF LEASE F AS,•ItT REDed ,1� �' _-_.17 �S"_IYVNS i.w •I• W:•. :V•w .iY1.. 1, , . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 • :�4 25 S. 27 f r� 1 A •1�1 32 STATE: OF IDAHO ) ss. County of Ada ) On this q2j- day of Oc,L-ober, 1978, before me, the undersigned, a Notary Public in and for said State, personally appeared ---r->q p AV- SVor s known to me to be the Mayor of,-the7City of Meridian, Idaho, and known to me to be the persons whose name is subscribed to the within instrument, and acknowledged to me that lie executed the same on behalf of'the City of Meridian. IN WITNEPS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year in this certificate first above writtep. N nd -fo -ary P lic in ar Idaho Residing at -Bi -sr-, Idaho STAVE OF IDA11O ) . ss. • County of Ada ). On this day of October, 1978, before me, the undersigned, a Nota y Public in and for said State, personally appeared A"*Z*mknown to me to be the President of Cherry Lane Recreation, Inc., whose name is subscribed to the within instrument, and acknowledged to me that tie executed the same on behalf of Cherry Lane Recreation, Inc. IN. WITNESS WHEREOF, I have hereunto set, my hand and affixed my official seal the day and year in this certificate first,gkove written. No ar Pu is in an� Idaho y ,� '•z `rwSk;�Fd;`I ltesiding Raise, Idaho 1.' .�4i J �• `' MEMORANDUM OF LEASE lir•1. •1�.. I IL . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 • :�4 25 S. 27 f r� 1 A •1�1 32 STATE: OF IDAHO ) ss. County of Ada ) On this q2j- day of Oc,L-ober, 1978, before me, the undersigned, a Notary Public in and for said State, personally appeared ---r->q p AV- SVor s known to me to be the Mayor of,-the7City of Meridian, Idaho, and known to me to be the persons whose name is subscribed to the within instrument, and acknowledged to me that lie executed the same on behalf of'the City of Meridian. IN WITNEPS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year in this certificate first above writtep. N nd -fo -ary P lic in ar Idaho Residing at -Bi -sr-, Idaho STAVE OF IDA11O ) . ss. • County of Ada ). On this day of October, 1978, before me, the undersigned, a Nota y Public in and for said State, personally appeared A"*Z*mknown to me to be the President of Cherry Lane Recreation, Inc., whose name is subscribed to the within instrument, and acknowledged to me that tie executed the same on behalf of Cherry Lane Recreation, Inc. IN. WITNESS WHEREOF, I have hereunto set, my hand and affixed my official seal the day and year in this certificate first,gkove written. No ar Pu is in an� Idaho y ,� '•z `rwSk;�Fd;`I ltesiding Raise, Idaho 1.' .�4i J �• `' MEMORANDUM OF LEASE lir•1. •1�.. I r J—U—B LNGINEERS, INC. 03 Franklin Road • eai:■, Idaho 83705 r 4 Project: 7543-06-1 Date: September 3, 1975 Revised: October 7, 1977 Revised: October 14, 1977 Revised: March 1, 1975 Page: 2 -- Excluding Fuller's and Barney's House Properties thence North 0°38'27" East 2,021.05 feet along the Westerly boundary of the said NW -1/4 of Section 3, which is also the centerline of Black Cat Road to an iron pin; thence South 89° 23' 04" East 1,042.02 feet to a point on the centerline of Eight Mile Lateral; thence South 56°28'32" East 248.22 feet along the centerline of Eight Mile Lateral to a point of curve; thence Southeasterly along the said centerline of Eight Mile Lateral along a curve to the right 132.85 feet, said curve having a central angle of 13 ° 07,' 25", a radius of 580.00 feet, tangents of 66.72 feet and a long chord` -of 132.56 feet bearing South 49*54149" East to a point of tangent; CAC,nce South 43'21'07" East 398.04 feet along the said centerline of Eight "l.lile["Lar ral. to a point; thence South 37* 32' 35" East 273.07 feet along the said centerline of Ei ht Mine Lateral to a point on the Northerly boundary of the SE 1/4 of the _ g sail {-IOW `1/4 of Section 3; thence South 89° 18' 58" East 834.67 feet along the said Northerly boundary '. of the SE 1/4 of the NW 1/4 of Section 3 to an iron gin marking the.. corner of the said SE 114 of the NW 1/4 of Section 3; thence South 89°02'00" East 1,321.04 feet along the Northerly boundary of the SW 1/4 of the NE 1/4 of the said Section 3 to an iron pin marking the Northeast corner of the said SW 1/4 of the NE 1/4 of Section 3; thence South 0026104" West 1,053.70 feet along the Easterly boundary of the sai,d,SW 1/4 of the NE 1/4 of Section 3 to an iron pin; thence North 89033'56" West 94.59 feet to a point; r thence South 0* 2 6' 04" West 202.46 feet along a line Westerly of and para-- e1. to the said Easterl�y boundary of the SW 114 of the NE 1/4 of -Section 3' to 11 Y a point; thence South 89° 33' 56" East 74.59 feet to a point; thence South 0° 26' 04" West 87.02 feet along ' a Line Westerly of and parallel to the said Easterly boundary of the SW 1/4 of the NE 1/4 of Section 3 to a point; J --U-- B ENGINEERS* INC. 03 Franklin Road • avlxe, Idaho 93705 Project: 7543-06-1 Date: September 3, 1975 Revised: October 7, 1977 Revised: October 14, 1977 Revised: March 1., 1978 Page: 3 - Excluding Fuller's and Barney's Rouse Properties thence South 88°55' 29" East 90.42 feet along a Line Southerly of and - parallel to the Northerly boundary of the said SE 1/4 *of Section 3 to a point; thence South 5* 22' 49" East 1.87.88 feet to a point; thence South 88'16'49" East 181.64 feet to, a point; thence North 0°19' 11" East 20$.75 feet along a line Westerly of and parallel to' the Easterly boundary of. the said SE 1/4 of Section 3 to a point on the said Northerly boundary of the SE 1/4 of Section 3; thence South 88'55'29" East 1,051.00 feet along the said Northerly boundary ; of the SE 1/4 o f Section 3 to an iron pin marking the Northeast corner of the said SE 1/4 of Section 3; t ence South 0"19111" West 1,075.14 feet along the said Easterly boundary of -the SE 11`4 of Section 3, which is also the centerline of Ten Mile Road, to an iron pin; thence North 89°40' 49" West 487-61 feet to a point on the centerline of � &`tledge Lateral; thence . South 71015'16" East 63.15 feet along the said centerline of Rutem t ledge Lateral to a point; thence South 70"35'51" East 357.24 f eet along the said Centerline.. of y Rutledge Lateral to a point of curve; thence Southeasterly along the said centerline of Rutledge Lateral along a curve to the left 18.41 feet, said curve having a central angle of 8018'20", a radius of 127.00 feet, tangents of 9.22 feet, and a long chord of 18.39 feet bearing South 74 ° 45' O1" East to a point of tangent; thence South 78°54' 11" East 73.61 feet to a point on the Easterly boundary of the said SE 1/4 of Section 3; thence leaving the said centerline of Rutledge Lateral South- 0°19' 11" West 11.7.32 feet along the said Easterly boundary of the SE 1/4 of Section 3 to an iron pin; thence South 89° 58' 55" West 2551.90 feet to an iron pin; thence South 0*19' 11" West 170.11 feet along a line Westerly of and parallel to the said Easterly boundary of the SE 1/4 of Section 3 to an iron pin r ' J— U— B , ENGINEERS, INC. 103 Franklin Road • Bolse, Idaho 83705 Project: 7543-06.1 Date: September 3, 1975 Revised: October 7, 1977 Reprised: October 14, 1977 Revised: March 1, 1978 Page: 4 -- Excluding Fuller's and Barney's House Properties thence North 89058#5511 East 255.90 feet to an apron pin on the said w East"e' tly boundary of the SE 1/4 of Section 3; thence South 0019' 11it West 805.32 feet along the said Easterly boundary of the SE 1/4 of Section 3 to an iron pin; thence North 89 ° 16' l3" West 210: 00 feet along a line Northerly of and . parallel to the said Southerly boundary of the SE 1/4 of Section 3 to an iron pin; thence South 00191111.t West 320.00 feet along a line Westerly of and parallel to the said Easterly boundary of -the SE 1/4 of Section 3 to the point of beginning, comprising 330.16 acres, more or less. Prepared by: J -U -B ' ENGINEERS , Inc. R E D Lq 4-V :Y0 to '� ZQ ROID Gary L. Rodenspiel, L.S. DIS'/JAP : na �• .r T L -j L--1 N L._01i r lva ■ f61111L11F1 fluou ' gewgaw# qa+=.++. r.r. -WW Project: 75It3--18 Date: Septcuit)cr 8, 1977 Revised: April 14, 1978 , EXHIBIT C .. REVISED DESCRIPTION FOR CHERRY LANE VILLAGE LAKE AND C1,UBHOUS E AREAS _ • AND GOLF COURSES 14 r\ND 13 PORTIONS of Tll� s 1/2 N 1/2 AND N 1/2 S 1/2s SECTION 39 T. 3No , Ro IW, , BJ1, , MERIDIAN, ADA COMITY, IDAHO AP arcel of land lying in portions of the S 1/2 of the N 1/2 and the N 1/2 of the S 1/2 of Section 3, T. 31N. , R. 114. , B.M. , ,Ieri.di.an, Ada: County, Idaho and more particularly described as follows: r r Beginning at a point marking the Northwest corner, of the said N 1/2 of the S 1/2 of Section 3; thence.- South. 89 ° 25' 06"' East 2, 077..73 feet along the Northerly boundary of the said N 1/2 of . the S 1/2 of Section 3 to a point, also said point 'being the REAL POINT OF BEGINNING; rtJ Wh`e South G° 29' 44" West 335.18 feet to a point, r• ce South 51.°45' 00" East 580:00 feet, to a point; . t�' ' � utth 5'DOO' 00" East A5.33 feet to. a point; •ence 0 3 ��Zblce South 2215' 00" West 60,05 feet to a point; thence south 43x58'10" East 238.75 feet to a point; ' • thence South 29* 0o' 00" East 110.00 feet to a point ,.thence North 61.000'00" East 81-1.9 feet to a point of curve; thence Northeasterly along a curve to the left 147.14 feet, said curve havinga central angle of 48* 1G' 28", a radius of 1.75. D0 feet, tangents of North 3�°54 44b" East 78.23 feet and a long chord of 142.84 feet bearing to a point of ending of curve; thence North 56°30' 00" [lest 151.38 feet to a point; thence North 41* 30' 00" West 203.92 feet to a point; 1. ' 0o" West 94.14 feet to �point.. thence North 17 5 thence North 2215' oo" East 147.00 feet to a point; • r thence Ncrth 65*50' oo" East 45.00 feet to a point, i 4 y J - U 7 13 Lei C1 AN1 - [:- R * INC, .rq.03 F-rankiln Road - Oolse,, Idaho 63705 a } w Projcctoo 7543--13 Date: septeniber 8, 1977 - i Revised: April 14, 1978 y Page: 2 -- Cherry Lane Village Lake & Clubhouse Areas and Coif - Courses 1.0 & 18 thence South 87° 20' 00" East 78.40 feet to a point ,& . • thence South 68°00' 00" East 61.48 feet to a point; y thence South 71.° 33' 25" Fast 88.05 feet to a point; thence South 6P°00' 00" Fast 108.33 feet to a point of beginning of curve; . thence Northeasterly along a curve to the right 139.32 feet , said curve having a central angle of 2 5035!l", a radius of 3.I.5 feet, tan - ygents o f 70.84 feet and a long chord of 138.16 feet bearing North 56 ° 12' 20" East to a paint of tangent; - 0 •ence Nor. th 69Q40' 00" ,,hthence Fast 11.5.08 feet to a poi • i Protect: 7543-18 Date: September 8, 1977 Revised: April 14, 1978 Page: 3 -- Cherry Lane Village hake & Clubhouse Areas and Golf Courses 10 & 18 • thence South 25°00100" West 64.19 feet to a point on the said Northerly boundary of the N 1/2 of the S 1/2 of Section 3; thence North 89°25`06" West 254.51 feet along the said northerly boundary of the N 1/2 of the 5 1/2 of Section 3 to the point of begin- ning, comprising 17.75 acres, more or less.. Prepared by ..... J -U- B ENGINEERS , Inc. _ • T ENGINEERS, IN $903 Fr&nkfln Awad - []else, Idoho 83705 1 + Project: 7543-18 Date. September 8, 1977 DESCRIPTION FOR CHERRY LAINE v I LLAG E GOLF COURSE NO. 11 A PORTION OF THE N 1./2 SE 1/4, SECTION 3, T. 3N. , R.1W. , P.M. , MERIDIAN, ADA COUNTY, IDA110 A parcel of land lying in a portion of the N 1/2 of the SE 1/4 of Section 3, '.T. 3N. , R. I.W. , E. Mt , Meridian, Ada County, Idaho and more par- ticularly described as follows. . Beginn"ing at a point marking the Northeast: corner of the said SE 1/4 of Sec tion 3;. thence South 61x14' 35" West 499.02 feet to a point, also said point being the REAL POINT.OF BEGINNING; thence South 31400' 00" Fast 100.00 feet to a point; thence South 54*00' 00" West 18 e . 0 oO feet to a pont, ■ thence South 66400' 00" West 200.00 feet to a point; thence South 83°30' 0o" West 433.26 feet to aoint; P � Aherlce South 79 45 00 West 260.25 feet to apoint; thence South 57'000100" East 20.00 feet to a point; thence South 83*15' 00" West 400.00 feet -to a point; thence South 65°23' 33" West 78.68 feet, to a point; thence North 19°36' 38" West 100.00 feet to a. point r thence North 69° 00' 00" East 15.08 feet to a point of curve; hence Northeaster] aloe a cure to the of Y left .57 feet , said curve having a central angle of 33°1.8' 35", a radius of 345..00. feet* = tangents of 103.21 feet and a long chord of x.97.76. feet bearing North 52°2Q' 4.3'.' East to a point of ending of curve; thence South 54018135" East 73.51 feet to a point; thence North 65400' 00" East 78.00 feet to a point; thence South 57°.00' 00" East 20.00 feet to a point; �7 f - i' • �- ENGINEERS, IN 5903 Franklin fiord - Doke, ldihO 83705 4 , prof cc t : 7543--18 Date. September S, 1977 Page: 2 -- Cherry Lane Village Gold' Course No. 11 Y { J—U— B *ENGINEERS, INC. 5903 Frank#In Road • Boise, Idaho 63705 Project: 7543-18 ]ate: September 8, 1977 Revised: September 27, 1978 REVISED DESCRIPTION FOR ri CHERRY LANE VILLAGE ' GOLF COURSES 1.2 & 13 A PORTION OF THE E 1/2 SE 1/49 SECTION 3, { T. 3N. , R.1W. , B . M. , Y' MERIDIAN, ADA COUNTY, IDAHO A parcel of .land lying in a portion of the E 12 P y g p / of the SE 1/4, Section 3, T,3N,, R.1W., B,M,, Meridian, Ada County, Idaho and more particularly described as follows: r Beginning at a point marking the Northeast corner of the said E 1/2 of. the SE 1/4 of Section 3; thence South 36005'29" West 623.99 feet to a point, also said point =birig the REAL POINT OF BEGINNING; r thence South 38 00 00 West 305.00 feet to a point, hevice South 32° 00' 00" West 205.00 feet to a point; w ;t thence South , 29°45' 00" West 175.00 feet to a point; thence South 5°30' 00" West 220.00 feet to a point; thence South 0°00' 00" East 400.00 feet to a point; thence South thence South. 57o 00t 00rt East 155.00 feet to a point, i 1°O0' 00" West 194.39 feet to a point; thence South 21"15'00" West 109.02 feet to a point of curve; thence Southeasterly along a curve to the left 263.44 f eet, ....said curve ' having a central angle of 201°1.5' 00", a radius of 75.00 .•feet, no . tangents and a long chcird of 147.43 feet bearing South 79°22' 3Q'.' .East; :.to ..a point. of tangent; .thence North 0'000'00" East 40.00 feet to a point; thence North 22°1.5' 00" West 110.00 feet to a paint; thence North 6°00' 00" East 320.00 feet to a .point; thence North 8$d00' 00" West 145.00 feet to a point; thence North 6°30' 00" East 150.00 feet to a point y is ; _ ENGU\JEERS, INC. 5903 Frankttn Road • Bolsov Idaho 83705 t` a] Prof ect: 7543--15 Date, September 8, 1977 Revised: September 27, 1978 Page: 2 -- Cherry Lane Village Golf Courses 12 & 13 thence Forth 19000100" East 180.00 feet to a point; thence North 300010011 East 260.00 feet to a paint; 4 thence -North 35'30'00" East 250, o0 feet to a point; thence North 22045100" East 265.00 feet to a point; thence North 65 °45' oo". Iiest 60000 feet to -the pint of beginning, Com ricin g, P g 5*37 acres, more or Less. Prepared by J -U--B ENGINEERS, Inc NR�� t * -LAP— B E-:NGINEERSo IN 5003 Frankiln r4oad 63705 i Projcct; 7543--18 Date* September 8, 1977 • DESCRIPTION �OR CHERRY LANE VILLAGE GOLF COURSES 14 THRU 1710 A PORTION OF THE SE 1/4, SECTION 3, T. 3N. , R.1W. , B,M, , MERIDIAN, ADA COUNTY, IDA110 parcel of land lying in a portion of the SE 1./4 of Section 3, T.3N9, Ra I14* , B-114'.. Meridian, Adan County, Idaho iand more particularly described as follows: Beginning ata point marking the Southeast corner of the said., SE 114 + of Sec t'i:on . 3 ; thence North 4359 ` 32" West 622.10 feet to a point; also said point being the ,SAL POINT- OF . BEGINNING; , thence:: South 86°28'00" West 143.88, feet to a point; thvence South 83*08' 00" West 328.98 feet to a point; t� or North 85'022'00" West 1.65.85 feet to a paint; then8e- forth 73°58`00" West 1.45.93 feet to a point; thence North 62"40'00" West 1.56.09 feet to a point; t th° nce Forth 52'38'00" West 154.62 feet to a point; thence North 67"52'00" West 168.57 feet to a point; thence North .58°10' 00" West 89.42 feet to a point.; thence Forth 28°37' 00" West 100.04 feet to a point; thence North 14000'00" West 125.00 feet to a paint; thence North 87019100" West 125.00 feet to •a paint; thence South 35'0001 00" West 78.00 feet to a point; , thence South 16° 30' 00" West 1.10.00 feet to a point; thence South 35'*00' 00" West 156.91 feet to .a point . thence South 61° 4 3' 00" West 315.50 feet to a point, thence South 49x21' 04" West 157.00 fe'et to a point; i J—U—. h B ENGINEC-:RS, IN 5903 F(anklin Road - Dolsr, Idaho 83705 Projects 7543 l8 Y Date: September 8, 1977 Fare: 2 - Cherry Lane Village Golf Courses 14 thru 17 thence South 80* 18' 00" West 80978 feet to a point; thence North 37°47'00" West 79.68 feet to a point; thence North 0 4 09' 00" East 1.71.92 feet to a point; thence North 32 * 50' 001' East 231..74 feet to a point; thence North 30003'39" East 225.00 feet to a point; thence North 44 ° 1:5' 00". East 137.90 feet' to a point; thence North 54 °45' 00" East 283.52 feet to a point thence North 41.*11' 55" West . x.06.78 •feat . to a: paint; thence South 66 ° 45' 00" West 166.25 feet to a point ; thence North 57°12' 00" West. 68.36 feet to a point thence North 29*00'00" West 92.78 feet to a point; thence North 61. ° 00' 00" East 86.26 f ee t to a point of curve; thence Northeasterly along a curve to the left 93.20 feet, said curve havingrr a central angle of 23°43' 56", a radius of 225.00 feet, : tangents. of t 47.28 Meet and a Long chord of 92.53 feet hearing North 491108 .02" East. to a point of ending of curve; thence South North 58'27'00" 81°34'29'1 East East 1.00.63 389.33 feet to feet to a point; a thence point; thence South 44x47' 48" East 41.29 feet to a point; thence South 20°30'00" East 80.00 feet to a paint; } thence South 13Q53'29" West 148.29 feet to a:point; . thence South 11 *15' 00" East 25.46 feet to a point; thence South 43°59'35" East 152.65 feet to a point thence South 69 ° 30' 00" West 20.00 feet to a point thence South 1°00' 00" West 100.00 feet to a-- point; J --A.0 —B ENGINEERS, INC. 5903 Frankiln Road Boise, Idaho 83705 , a Project: 7543--18 Date: September 26, 1978 TENTORARY RIGI ,.SSS --EGRESS EASEMENT NO. 1 DE SCRIPTIOZI FOR CHERRY LANE V I LLAM A PORTION OF T11E NE 1/4 SE 1/4s S ECTICN 3 T. 3N. , R.1W. , B .X. , KERI DIAN , ADA COUNTY, IDAHO A 40 -Moat temporary ingress -egress easement lying �' g 20 - t]C feet Southwesterly of and 20. C0 feet Northeasterly terl.y o f and adjacent to .the f allowing . described ce � terline,, n Beginning at the Southeast corner of the SE 1./4 of Section 3, T. 3N. , B.M., Meridian, Ada County, Idaho; thence North 0'19' ]..]." East 2 643.15 f � eet along the Easterly boundary of'the said SE 1/4 Of. Section 3 -to a point marking the Northeast earner of the ea l:d thence'South 50°21'44" West 578.49 feet to a point, also said pa the R QZ � POINT int being OF BEGINNING; thence S�ruth 24*43 "18" East 3.0 �. 73 feet to -���� �� �- i the point of ending of the above descri� 6 &er r1ine. . Prepared by J--U-B ENGINEERS Inc. S i •*. —*LJ— B r ENGINEERS, INC. 5903 Frankiin Road . Holse, Idaho 83705 Project,* 7543-18 Date: September 26, 1978 TM- 20 R.Y INGR SSS-1"G]'ESS EASMENT i10. 2 D :S CRIPT IOA'1 FOR CHERRY LANE V I LLAG E PORTION OF THE 1A4 1./4 SE 1/4, SECTION 3■ T. 3N. , R.1W. , B eHo , MERIDIAN,, ADA CGL:ITY , IDA110 A 40 -foot temporary ingress egress easement lying 20.00 feet Southwesterly of and 20.00 feet Northeasterly of and adjacent to the following described cen- terline Beginning at the Northeast corner of the SE 1/4 of Section 3s T.3N., RoWe ■ B , M* , Meridian, Ada County, Idaho; thence North SS',55' 29" West 2,643.29 feet al.oag the Northerly- boundary of than said SE 1/4 of S e�fion 3 to a ppint marking the Northwest corner of the said C:'1L: SE - II ,4 of Section 3; thence South 13° 28' 47" East 10 258.43 feet to a paint, also saidoiht beim P g the %- R,I INT of BEGINNING; thencesouth 37 01r53' Easy o feet to the point of ending of the above de$crilte 140an&erline d Prepared by, .T--N-B E�yGx��EES, Ince • U2/ RV Y►+r Gary L. Rodenspiel, L.S. y E W/KFR: dm i J� � p k �'" ir:,J— B E.NGII ;EERS, INC. 5903 Franklin Road • Boise, #daha 83705 r F UY Prof ect : 7543--I$ Date: Septemler 26, 1978 TMIPORARY INGU , SS -EGRESS RASUKE,11T NO. 3 DESCIUPTION FOR Ca .RY U%NIE VILLAGE PORTION OF 'ME �dW 1/4 SE 1.14, SECTION 3, T. 3 . , R. 1W. , B * 1N' . , MERIDIAN, ADA COUNTY,, IDAHO A, 40 -foot temporary ingress --egress eaaement lying ' 20.0G feet Southwesterly of and 20.00 feet Northeasterly of and adjacent to the following described .een-w terline; Beginning at the Northeast corner of the SE 1/4 of Section 31 T. 314. , , R.1W.y0 B **6K r , Ada County,. Idaho thence . North 88955'29" West' 21,643.29 feet along the Northerly boundary ., of = the said SE 114 of Section to a point marking the Northwest corner �f..: the said SE 1/4 of Section 3; mouth 51'600'07" East 960.70 feet to a point, also said paint being the RP,AL P01INT of BEGINNING; south 31 031010East 50.82 feet to the paint of ending cif the. above described centerline. r prepared by: ti 3-U- B ENGINEERS , Inc EMTW/UR : dm b r � J—Aj— B_ Er��INEERS, INC. 5303 Franklin Road - B[���aIdaho 83705 "CH-N&f EERS, INC. 5903 Franklin Road - Boise, Idaho 83705 Project: 7543-18 Date: September 26, 1973 MWORARY ACCESS A" D PArKx ,1c;G EASE1LE.NT DESCRIPTION FOR CHERRY EA14E VILLAGE .� PORTION of THE N 1/2 S 112, SECTION 3, T• 3N* s R, 114* ! B *X& I, KERxD IXN , ADA COUNTY, IDAHO 1 I LA IVV . VVV VM: VV V" vl: . IV --F 11.\ VV I L<_1. - -.nl 1 f. l.Ll 1 Pt/� •�Vy ._avV 1VV1 1 num �; � Sea t? 02 02. 2e- -r � • � •r V. Gf �i3$B$ip'a aaa n, 7 -ter �rnsze .j�..ls �•OSN v.wio v.•GpAi .. iyli WNr 49i0904ai7i ii='LaT -T's�a.rriv;:= 'iw,il molar-, l3O-mc 0270 Qea6' 3w5•107�& �. rwl w ""New J. IgUITAVC1, 1i1�7?.Y •i�.i�-7�i-.: ii �Tl r'7'4� Ti TT.7 5! v Zjj 7; 13 ! L•�' �+�ait�#�ar .1.4;.-1999 5EPiaffi >c ams a+r U XF 47a T-3 zz; IUL L 2 fir Mz4UMUU,1 w16Y 7� G. JQiKiV Ai►6Rtia A"ialga two 53642 RE: Qwgry Law mcmitam inc. Lease DW C y of Mandlan; Wotim is befebY Sim the Charry Marie R=eation, Inc., in Idaho Coporatiar&, ft LrSsee under that Certain Agreement of Lem dated October 3, 1978 by and between the City of Magridian gs Laaaor and Cherry Lane ltecrzatioa, itic. as Le,Sstr, uodc&, Pursuant to Article iS of said Agreement of Lease that the Leasee exercises its option to renew upon the sme tesma and condors for an add'its"ong terns of thirty (30) years, to zamMence ort emiration of tbo initial twenty --fes (25) _year tem specified is Artiafe 2 0€the said stent of cam. Very T Pr. J6. WSIr-jMR ., ... a_._ a W: Mr. W duan 13' F. lTigrii y, 11-I f via i'mium"e j Office of the City Attorney The City of Meridian - Idaho's Initial Point of Beginning To: Mayor and Council From: Wm. F. Gigray, III, William F. Nichols Subject: Agreement of Lease Golf Course Date: September 28, 1999 200 E. Carlton Ave. Suite 31 PO Box 1150 Meridian ID 83680-1150 Phone: 288-2499 Fax: 288-2501 E-mail: wfg@wppmg.com J?FCETV S E P 2 8 1999 CI'T`Y OF Nix _B A_\ Our office has reviewed the Golf Course Agreement of Lease dated October 3, 1978, with Cherry Lane Recreation, Inc., the NuPacific Agreement dated October 3, 1978 and the Memorandum of Understanding dated December 23, 1977, all related to the Golf Course. We reviewed these. agreements for the purpose of malting recommendations regarding any ongoing responsibilities that the City has under any of these agreements. Review of Agreement of Lease, Chenv Lane In reviewing the Agreement of Lease Cherry Lane we noted the following unusual items or provisions. Section 4(b) requires that the golf course lessee make specific provisions for youth programs for "entertainment, instruction, and social' purposes. Section 8 requires the lessee to perform all of the city of Meridian's obligations contained in the city's agreement with NuPacific. Section 11 requires the lessee to indemnify the City from any damages, it mentions insurance, but does not contain any provisions requiring a specific amount of insurance. Section 16 gives the City the ability to review, but not to determine, the amount of greens fees charged to play the course. Section 15 contains very unusual options and lengthy provisions to renew the lease. Mavor SL Council Citv of Meridian September 28, 1999 Page 2 The lessee has exercised its first option to renew the lease for an additional term of 30 years to extend the lease through the year 2033. Near the end of that extended term, the City would need to negotiate with the current lessee, if the lessee expresses an intent to renew the lease for another ten years. This negotiation would be to determine what the terms and conditions of the second extension will be. The current language of the lease limits negotiation on the first renewal. The only limit that will be in place when it comes time to renegotiate the lease near the end of the first extended term, will be an obligation to negotiate in good faith. Therefore, at that time, terms such as the amount of rent to be paid, how the course is to be managed, and any other issues that will be important to the City at that time will be appropriate for negotiation into the new lease agreement. The City will not be bound to continue the lease on the same terms and conditions as the current lease. Review of Agreement — NuPacific The agreement with NuPacific is an important part of the current lease arrangement because of the tie-in between the NuPacific agreement and the current lease with Cherry Lane. The City's obligations under this agreement are fairly extensive. For example, on pages 4 and 5, the City is obligated to maintain and manage the golf course in a manner typical to municipal public courses nationwide. It also requires at least an annual review of operations of the course with the possible requirement for hiring an outside consultant to advise the City with regard to these issues. Merely entering into a lease like the one with Cherry Lane Recreation, Inc., does not excuse the City from performing according to the terms of the NuPacific agreement. This is a "nondelegable" provision. The City does not want to get into a position where it has to hire an outside consultant in order to satisfy the terms of the Nu Pacific agreement. We note that a few years ago, the City of Ontario, Oregon, spent a considerable amount of money hiring professional golf consultants to advise the City on the operation and maintenance of the Ontario municipal course. Page 6 of the NuPacific agreement contains a requirement that the City provide NuPacific with certified copies of insurance policies that cover the golf course. If these have not been provided in the past, it is possible that NuPacific may be willing to waive this requirement in writing. The term of the agreement with NuPacific has no definitive ending date. It Mayor & Council City of Meridian September 28, 1999 Page 3 specifies that the Agreement continues in effect as long as NuPacific or any transferee from NuPacific owns property in the Cherry Lane Village development. The Agreement can be terminated by mutual agreement of the parties, but otherwise it continues. It is also important to note that this particular agreement does not contain a standard "successors and assigns" clause which would make that particular agreement binding upon the successors and assigns of either party. Closely connected to the term of the agreement is the right on the part of NuPacific to re -purchase the golf course property from the City for its fair market value as determined by a bona fide offer from an unrelated third party or a certified appraisal. This ability to repurchase the golf course property continues through the term of the agreement and for an additional 15 years after the agreement is terminated. The default provisions under the Nu Pacific agreement are very strict. If the City failed to remedy a default after having been given 30 days written notice, specifying the default, then NuPacific could demand that the City deed the property back to NuPacific. Recommendations We have several recommendations to make regarding the golf course lease and the NuPacific Agreement. 1. Lease Monitoring One department in the City needs to be designated to monitor the lessee's performance under the lease. That monitoring should include an ongoing review of youth programs at the course, an annual review of greens fees, annual verification of insurance coverage, annual review of golf course management which would include the condition of the course, utilization, and financial matters, including capital improvement expenditures, repairs, and preventive maintenance. Also included would be marketing and promotions, and even perhaps employment policies. 2. Negotiate an end to the NuPacific Agreement The City should also designate a department or person to make contact with Mayor & Council City of Meridian September 28, 1999 Page 4 NuPacific to determine if an early end to the agreement can be negotiated. If NuPacific has sold all of its property within the development, then they typically would not have any interest in continuing with this agreement since it would serve no purpose for their company. Negotiating an end to the agreement would have the advantage of starting the 15 year repur&iase time so that it would run out prior to the time that the extended lease will expire. More importantly an early termination of the agreement would cut off the possibility of a claim for reversion of title to NuPacific on the basis of some sort of claimed default. Conclusion and goals and recommendations The advantage to monitoring the lease and seeking early termination of the NuPacific agreement are closely tied to the public purpose of having the golf course in the first place. The golf course lease provides very little funds to the City, but does provide citizens of the community with a public golf course which in turn likely brings additional commerce to businesses in the community and brings the City additional tax revenue from increased property values of those homes located near the course. It is a community asset and certain terms under the lease agreement give the City the ability to ensure that it continues to be a community asset. Assuming for purposes of this Memo, the renewal option has been exercised, and the lease will expire at the extended term in the year 2033, as stated before in this memo, the lease will be up for complete renegotiation including a reasonable rental payment. If for some reason or another, the current lessee chooses not to renew the lease in the year 2033 or if a new lease cannot be negotiated, then the City must be prepared to operate and manage the course or solicit other qualified lessees to operate the course. Conducting a program of ongoing monitoring over the next 34 years will best position the City to be prepared to: 1. Negotiate with the current lessee; 2. Find a new lessee if unable to reach agreement with the current lessee; 3. . Operate the course as a City run enterprise; and 4. Ensure that the course is kept in top notch shape and does not deteriorate near the end of the extended term. eyfZAWorkWMeridian 15360M\Cherry Lane Golf Course CUP\Course.Mem