Joint Use Agreement with Meridian Police Activities League for Heroes Park with PALAGREEMENT FOR DEVELOPMENT
AND JOINT USE OF HEROES PARK
This AGREEMENT FOR DEVELOPAMM AND JOINT USE OF HEROES PARR
(hereinafter "Agreement") is made this _ of August, 2008 (the `Effective Date'), by
and between the City of Meridian, a municipal corporation organized under the laws of the State
of Idaho (hereinafter "City"), and the Meridian Police Activities League, Inc., a nonprofit
corporation organized under the laws of the State of Idaho (hereinafter `UPAU).
WHEREAS, the respective governing bodies of City and MPAL are mutually interested
in enhancing the Meridian community's quality of life by providing and supporting recreational
facilities and opportunities, including soccer programming, for members of the Meridian
community;
WHEREAS, City and MPAL recognize that through cooperation, publicly -held facilities
can be used to meet broader community needs for athletic programming and recreation than
either party can provide separately;
WHEREAS, Heroes Park, located at West Malta Drive, Meridian, Idaho (hereinafter
referred to as "Park'), upon completion, is to include soccer playing fields and related
improvements and defined as the area depicted on Exhibit A hereto;
WHEREAS, on or about September 21, 2004, MPAL and City entered into a
development and license agreement under which certain rights and responsibilities regarding the
development of facilities, amenities, and infrastructure at Park were set forth, and by which a
partnership was established;
WHEREAS, the nature of the partnership between, and the available resources of, the
respective parties have changed such that the previous written agreement and amendments
thereto no longer reflect the respective resources and commitments that the parties wish to
contribute to the development and joint use of Park, and by this Agreement the parties hereby
supersede and void all previous agreements;
WHEREAS, MPAL has agreed to reimburse City for certain costs incurred by City for
improvements implemented to benefit Park in exchange for City's agreement to allow MPAL's
use of Park and related improvements under the certain terms and conditions as set forth in this
Agreement; and
WHEREAS, the respective governing bodies of City and MPAL find that it is fiscally
responsible and in the best interest of the community to enter into an agreement sharing the costs
and benefits of Park;
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged and agreed, and in consideration of the mutual promises and
covenants herein contained, and in consideration of the recitals above, which are incorporated
herein, City and MPAL agree as follows:
AGREEMENT FOR DEVELOPMENT AND Jo NT USE OFHEROESPARK PAGE 1 OF 14
J. General obligations of MPAL.
A. Monetary contribution.
1. City and MPAL agree that the facilities, features, and amenities of Park shall be
developed generally in accordance with the plan attached hereto as Exhibit A.
2. City and MPAL agree that in lieu of developing particular facilities, features, or
amenities of Park, and irrespective of and in addition to any and all other monetary and/or
in-kind contributions made prior to, during, and/or following this Agreement, MPAL
shall contribute three hundred twenty-eight thousand dollars ($328,000.00) to the
development of Park, which amount appropriately reflects both the history and nature of
the respective parties' past contributions to the development of Park and the intent and
vision of the respective parties regarding the future development and use of Park.
3. MPAL shall therefore pay to City three hundred twenty-eight thousand dollars
($328,000.00) according to the terms of the Mortgage and Security Agreement and
Mortgage Note separately executed and attached hereto as Exhibit B.
B. Primary Source of Contact for MPAL. MPAL shall provide City the name, e-mail
address, and telephone number of specific MPAL personnel (hereinafter "MPAL Contact")
who shall serve as MPAL's primary contact between City AND MPAL for all matters
regarding the day-to-day scheduling, use, and maintenance of Park.
C. Reasonable use. MPAL shall employ best efforts to ensure that its use of Park and Park
facilities, amenities, infrastructure, and/or vegetation is appropriate and reasonable. Where
MPAL's use of Park and Park facilities, infrastructure, and/or vegetation causes
disproportionately excessive damage to same, MPAL shall reimburse City for the cost or
proportionate cost of necessary repairs and/or replacement. WAL shall exercise best efforts
to see that any and all use of Park, where such use is scheduled or authorized by MPAL, is in
compliance with all laws and with City's policies regarding use of City parks and/or
facilities, including, but not limited to, such reasonable policies as may be adopted or enacted
by the Director of the Meridian Parks and Recreation Department.
D. Field marking. Throughout the Spring and Fall Soccer Seasons and the June and July
Soccer Camps, MPAL shall accomplish any and all field striping and/or marking that is
required for its practice sessions and/or games.
E. Goals and equipment. MPAL shall be solely responsible for providing, maintaining,
Preparing, repairing, and/or replacing any and all necessary equipment for any and all MPAL
activities. MPAL shall not allow such equipment to stay on the field when the equipment is
not in active use, except that goals may be set up on the evening preceding a soccer game or
game day, so long as such goals are removed from the field at the conclusion of such game or
game day. MPAL shall stow such equipment, including, but not limited to, soccer goals, in
AGREEMENTFOR DEYELOPMENTANDJOINT USE OFHEROESPARK PAGE 2 OF 14
such location as shall be designated by the Director of the Meridian Parks and Recreation
Department.
F. Storage facility. As set forth in the plan attached hereto as Exhibit A, Park shall include a
building containing restroom facilities, a concession facilities, a storage facility designated
for City's use, and a storage facility designated for MPAL's use. MPAL shall secure the
storage facility designated for MPAL's use (hereinafter'WAL storage facility') so as to
prevent criminal or destructive behavior to same and/or to the attached or adjacent facilities.
MPAL shall be solely responsible for any theft, vandalism, unlawful entry, arson, or other
damages incurred to the MPAL storage facility and/or to attached or adjacent facilities due to
a breach of security at the MPAL storage facility. MPAL shall maintain the MPAL storage
facility in a safe and sanitary manner and shall repair immediately any unsafe or insanitary
conditions caused by the NIPAL storage facility or items or materials stored therein.
G. Inline Hockey Facility.
L Temporary goals and barriers. MPAL shall, at its sole cost and liability, install
temporary goals on the playing surface and install temporary court barriers around the
perimeter of the playing surface in accordance with official inline hockey regulations and
safety standards as established by USA Hockey Inline or the Amateur Athletic Union.
2. Resurface and repaint. At MPAL's election, and upon execution by both City and
MPAL of a separate written addendum to this Agreement, MPAL may elect to resurface
and/or repaint the inline hockey playing surface, install permanent goals on the playing
surface, and/or install permanent court barriers around the perimeter of the playing
surface.
3. Commercial advertising. Unless and until a separate written agreement is reached
regarding commercial advertising at Park, no commercial advertising shall be permitted
on any portion of the inline hockey facility at Park, except that temporary signs
announcing commercial sponsorship of an MPAL or City event may be posted at the
inline hockey facility during such event, so long as such signs are removed from the
inline hockey facility at the conclusion of such event and comply with all other applicable
provisions of City code and policy.
4. Funding separate. MPAL expressly represents and warrants that each and all of these
delineated preparation activities shall be undertaken and fimded separately and apart from
any other duties or costs set forth herein. The $328,000.00 due and owing from MPAL to
City under this Agreement shall not include the cost of preparing the inline hockey
facility as set forth in this paragraph.
II. General Obligations of City.
A. Development of Park. City shall install Park facilities and infrastructure generally in
accordance with the plan attached hereto as Exhibit A, except that City shall be entitled to
make reasonable and/or necessary changes to such plan and/or the implementation thereof.
AGREEMENTFORDEYELOPMENTANDJOINT WE oFHEROESPARK PAGE 3 of 14 .
B. Maintenance and operation.
Mowing, irrigation, custodial. Except as otherwise set forth herein, City shall provide
maintenance, mowing, irrigation, and custodial services with regard to all Park facilities,
infrastructure, and vegetation. This shall include:
a. Maintenance of all Park turf, including, but not limited to, any and all necessary re-
seeding, laying sod, weed or pest control, and/or fertilizing;
b. Cleaning and maintaining concession facilities; and
c. Cleaning, maintaining, and stocking all restroom facilities.
2. Utilities. City shall provide all necessary utilities and services to Park, including, but not
limited to, electricity, potable water, sewage service, and/or waste and refuse removal.
3. Repair. Except as otherwise set forth herein, City shall cause the repair and/or
replacement of any and all Park facilities, infrastructure, and/or vegetation that are
physically damaged by use, misuse, vandalism, acts of nature, weather, or other damage
or wear and tear.
4. Scheduling. Except as otherwise set forth herein, City shall be solely responsible for
scheduling all use of Park and Park facilities and amenities.
C. Primary Source of Contact for City. City shall provide MPAL the name, e-mail address,
and telephone number of specific City personnel (hereinafter "City Contact') who shall serve
as City's primary contact between City and MPAL for all matters regarding the day -today
scheduling, use, and maintenance of Park.
D. Storage facility.
1. Security of City portion. With regard to the building containing restroom, concession,
and storage facilities, City shall secure the restroom, concession, and City storage facility
portions thereof so as to prevent criminal or destructive behavior to same and/or to the
attached or adjacent MPAL storage facility.
2. Exterior. City shall maintain the exterior of such building, including the exterior of the
MPAL storage facility, except that MPAL shall be solely responsible for the maintenance
and operation of any and all security devices, systems, and/or hardware utilized to secure
the MPAL storage facility.
E. Inline Hockey facility playing surface. City shall surface the inline hockey facility with
concrete and shall mark and paint such concrete playing surface in accordance with official
inline hockey regulations and safety standards as established by USA Hockey Inline or the
Amateur Athletic Union.
AGREEMENT FOR DEVELOPMENTAND JOINT USE OFHEROESPARK PAGE 4 of 14
III. General Rights of MPAL.
A. Storage facility. Subject to all other provisions of this Agreement, MPAL shall be entitled
to exclusive use of the MPAL storage facility at Park.
B. Collection of fees. MPAL shall have right to assess and collect reasonable fees from persons
participating in activities set forth in the Official MPAL Spring Schedule, the Official MPAL
Fall Schedule, the Official June and July Soccer Camp Schedules, and/or the Official MPAL
Inline Hockey Schedule. Upon providing thirty (30) days advance written notice to City,
MPAL may charge admission fees for access to Park or Park facilities for a regional or state
tournament hosted by MPAL which is affiliated with a national sponsor, including, but not
limited to, the National Police Activities League, or with a district sponsor including, but not
limited to, Idaho Youth Soccer Association, or other sponsor requiring the host organization
to charge admission fees. Except as provided herein, MPAL shall not collect admission fees
for soccer practice sessions and/or games. Except as provided herein, City shall not be
entitled to any fee assessed and/or collected by MPAL.
IV. General Rights of City.
A. Public park. The parties hereto expressly acknowledge that Park is a public space, the
management and scheduling of which shall at all times be within the sole purview of City.
City shall have the right to use or allow the use of Park for any and all purposes and under
any and all conditions, so long as such use does not conflict or interfere with a scheduled use
set forth in the Official MPAL Spring Schedule, the Official MPAL Fall Schedule, the
Official MPAL June and Soccer Camp Schedules, and/or the Official MPAL Inline Hockey
Schedule.
B. Alterations/Improvements to Park. Upon thirty (30) days notice to MPAL in the manner
established herein, City shall have the right to make alterations of Park and/or to construct or
locate fences, fixtures, structures, and/or any other improvements in or upon Park or Park
facilities, infrastructure, and vegetation, except that City may undertake alterations,
construction, or improvements to or in Park on an emergency or immediate basis without
notice to MPAL where such action is necessary to protect the health, safety, and/or welfare
of the public, or where such alterations, construction, or improvements will not unreasonably
affect MPAL's use of Park or Park amenities or facilities as set forth in this Agreement.
Unless otherwise agreed in writing by the parties prior to such alterations, construction,
and/or improvements to Park by City, such alterations, construction, and/or improvements to
Park shall not adversely affect the use of Park by MPAL, except that City may undertake
alterations, construction, or improvements to or in Park on an emergency or immediate basis,
even if such action will adversely affect the use of Park by MPAL, where such action is
necessary to protect the health, safety, and/or welfare of the public.
C. Collection of Fees. In accordance with its policies, City shall have right to assess and collect
reasonable user fees from persons who use Park; however, the amount of such user fees shall
AGREEMENT FOR DEVELOPMENT AND iomr USE OFHEROES PARK PAGB 5 of 14
not exceed cosh and expenses actually incurred MPAL shall not be entitled to any Park user
fee assessed and/or collected by City.
V. Parties' Scheduling Oblleations and Entitlements.
A. Public reservation of Park amenities, February 1. The parties acknowledge that on
February 1 of each year, City shall make available to the public the opportunity to reserve
unscheduled and/or unreserved soccer fields and shelters in Park. As a condition of MPAL's
priority use of Park and Park amenities as such use is described and/or permitted herein,
MPAL shall adhere strictly to the scheduling requirements set forth herein.
B. No right to exclude conveyed. Any exclusive use granted to MPAL by this Agreement shall
include neither the right to exclude any law-abiding person from Park where such person is
not interfering with MPAL's use thereof, nor the right to interfere with any person's
concurrent, lawful use of Park where such concurrent use does not conflict or interfere with
MPAL's use. At all times not set forth in the Official MPAL Spring Schedule, the Official
MPAL Fall Schedule, the Official June and July Soccer Camp Schedules, the Official MPAL
hiline Hockey Schedule, or as such activities are rescheduled in accordance with this
Agreement, MPAL shall be on an equal footing with the general public regarding its use of
Park, which shall include, but shall not be limited to, reservation requirements, priority of
reservation of Park facilities, and payment of reservation and other applicable fees. MPAL
shall exercise any exclusive use granted by this Agreement only in accordance with the terms
of this Agreement and in accordance with any and all applicable laws and City policies.
C. Spring Soccer Season.
1. Establishment of Spring Soccer Season. By December 1 of the preceding year, MPAL
shall provide written notice to City as provided herein of the starting and ending dates of
the twelve- to fourteen -week period in the spring of the following year during which
MPAL proposes to schedule and conduct field preparation and soccer practice sessions
and games at Park. By December 31, the Meridian Parks and Recreation Director shall
either provide written notice to MPAL of the acceptance of same, or shall notify the
MPAL Contact of any necessary amendments. Upon City's mailing of City's written
acceptance of MPAL's proposed season, the proposed season shall be known as the
'Spring Soccer Season." Once established, the Spring Soccer Season may be amended
only upon communication between the MPAL Contact and the Meridian Parks and
Recreation Director. MPAL shall not be guaranteed priority use of the soccer fields at
Park if the Spring Soccer Season is amended after January 31.
2. Establishment of Official WAL Spring Schedule. At least thirty (30) calendar days
prior to the first day of the Spring Soccer Season, MPAL shall provide written notice to
City as provided herein of its proposed practice and game schedule for the Spring Soccer
Season, which shall include proposed dates, times, locations (Le. fields to be used), and
duration of each and every soccer practice session and soccer game or soccer game day.
The proposed schedule shall also delineate the dates, times, locations, and duration of
soccer field preparation activities to be undertaken by MPAL prior to any and all practice
AGREEMENT FOR DEVELOPMENT AND JOINT USE OFHEROES PARK PAGE 6 of 14
sessions and games or game days. Within seven (7) calendar days of receipt of the
proposed schedule from MPAL, the Meridian Parks and Recreation Director shall either
provide written notice to MPAL of the City's acceptance of some or shall notify the
MPAL Contact of any necessary amendments. Upon City's mailing of City's written
acceptance of MPAL's proposed schedule, the proposed schedule shall be known as the
"Official MPAL Spring Schedule." Once established, the Oficial MPAL Spring
Schedule may be amended only upon communication between the NIPAL Contact and
the City Contact. MPAL shall not be guaranteed priority use of the soccer fields at Park
if the Official MPAL Spring Schedule is amended after January 31.
3. Fields. Provided that MPAL strictly adheres to the scheduling requirements as set forth
in this Agreement, during the Spring Soccer Season, MPAL shall be entitled to exclusive
use of the soccer fields in Park for soccer practice session(s), soccer game(s), and field
preparation as scheduled in accordance with the Official MPAL Spring Schedule for the
purposes set forth therein and under the terms set forth in this Agreement, which use shall
preclude non-MPAL uses of the soccer fields.
4. Shelters. Provided that MPAL strictly adheres to the scheduling requirements as set
forth in this Agreement, during the Spring Soccer Season, MPAL shall be entitled to the
use of Park shelters as follows.
a. Shelter reservations made for during practice sessions and games on days other
than Saturdays. Between the establishment of the Spring Soccer Season as set forth
herein and January 31, MPAL shall be entitled to reserve one (1) shelter in Park
during practice sessions or game days which are scheduled per the Official MPAL
Spring Schedule for days other than Saturdays, for which reservation the shelter
reservation fee shall be waived. City shall have the right to reserve one (1) shelter for
non MPAL activities or uses, which reserved uses shall take precedence over
MPAL's non -reserved use of such shelter. In the event that MPAL does not reserve
either or both shelters in Park during a non -Saturday game and/or practice session,
City shall have the right to reserve both shelters for non-MPAL activities or uses,
which reserved uses shall take precedence over MPAL's non -reserved use of such
shelters. After January 31, MPAL shall be on equal footing with the general public
regarding shelter reservation requirements, priority of reservation, and payment of
shelter reservation fees.
b. Shelter reservations daring practice sessions and games on Saturdays. MPAL
shall be entitled to exclusive use of both shelters in Park on Saturdays during the
Spring Soccer Season, which use shall preclude non-MPAL reservations and/or uses
of the shelters. MPAL shall not be required to make a specific shelter reservation for
such use, and there shall be no shelter reservation fee for such use.
D. Fall Soccer Season.
1. Establishment of Fall Soccer Season. By December 1 of the preceding year, MPAL
shall provide written notice to City as provided herein of the starting and ending dates of
AGREEMENT FOR DEVELOPMENT AND JOINT UsE OFHEROESPARK PAGE 7 of 14
the ten- to twelve -week period in the fall of the following year during which MPAL
proposes to schedule and conduct field preparation and soccer practice sessions and
games at Park. By December 31, the Meridian Parks and Recreation Director shall either
provide written notice to MPAL of the acceptance of same, or shall notify the MPAL
Contact of any necessary amendments. Upon City's mailing of City's written acceptance
of MPAL's proposed season, the proposed season shall be known as the "Fall Soccer
Season." Once established, the Fall Soccer Season may be amended only upon
communication between the MPAL Contact and the Meridian Parks and Recreation
Director. MPAL shall not be guaranteed priority use of the soccer fields at Park if the
Fall Soccer Season is amended after January 31.
2. Establishment of Official MPAL Fall Schedule. At least thirty (30) calendar days prior
to the first day of the Fall Soccer Season, MPAL shall provide written notice to City as
provided herein of its proposed practice and game schedule for the Fail Soccer Season,
which shall include proposed dates, times, locations (i.e. fields to be used), and duration
of each and every soccer practice session and soccer game or soccer game day. The
proposed schedule shall also delineate the dates, times, locations, and duration of soccer
field preparation activities to be undertaken by MPAL prior to any and all practice
sessions and games or game days. Within seven (7) calendar days of receipt of the
proposed schedule from MPAL, the Meridian Parks and Recreation Director shall either
provide written notice to MPAL of the City's acceptance of same or shall notify the
MPAL Contact of any necessary amendments. Upon City's mailing of City's written
acceptance of MPAL's proposed schedule, the proposed schedule shall be known as the
"Official MPAL Fall Schedule." Once established, the Official MPAL Fall Schedule
may be amended only upon communication between the MPAL Contact and the City
Contact. MPAL shall not be guaranteed priority use of the soccer fields at Park if the
Official MPAL Fall Schedule is amended after January 31.
3. Fields. Provided that MPAL strictly adheres to the scheduling requirements as set forth
in this Agreement, during the Fall Soccer Season, MPAL shall be entitled to exclusive
use of the soccer fields in Park for soccer practice session(s), soccer game(s), and field
preparation as scheduled in accordance with the Official MPAL Fall Schedule for the
purposes set forth therein and under the terms set forth in this Agreement, which use shall
preclude non-MPAL uses of the soccer fields.
4. Shelters. Provided that MPAL strictly adheres to the scheduling requirements as set
forth in this Agreement, during the Fall Soccer Season, MPAL shall be entitled to the use
of Park shelters as follows.
a. Shelter reservations made for during practice sessions and games on days other
than Saturdays. Between the establishment of the Fall Soccer Season as set forth
herein and January 31, MPAL shall be entitled to reserve one (1) shelter in Park
during practice sessions or game days which are scheduled per the Official MPAL
Fall Schedule for days other than Saturdays, for which reservation the shelter
reservation fee shall be waived. City shall have the right to reserve one (1) shelter for
non-MPAL activities or uses, which reserved uses shall take precedence over
AGREEMENT FOR DEVELOPMENTAND JOINT USE OFHEROESPARK PAGE 8 OF 14
MPAL's non -reserved use of such shelter. In the event that MPAL does not reserve
either or both shelters in Park during a non -Saturday game and/or practice session,
City shall have the right to reserve both shelters for non-MPAL activities or uses,
which reserved uses shall take precedence over MPAL's non -reserved use of such
shelters. After January 31, MPAL shall be on equal footing with the general public
regarding shelter reservation requirements, priority of reservation, and payment of
shelter reservation fees.
b. Shelter reservations during practice sessions and games on Saturdays. MPAL
shall be entitled to exclusive use of both shelters in Park on Saturdays during the Fall
Soccer Season, which use shall preclude non-MPAL reservations and/or uses of the
shelters. MPAL shall not be required to make a specific shelter reservation for such
use, and there shall be no shelter reservation fee for such use.
E. Summer Soccer Camps.
1. Establishment of Ofcial June and July Soccer Camp Schedules. By December i of
the preceding year, MPAL shall provide written notice to City as provided herein of the
starting and ending dates of the two-week period in June of the following year and the
two-week period in July of the following year during which MPAL proposes to schedule
and conduct soccer camps at Park, which notice shall also include locations of such
camps (i.e. fields to be used). By December 31, the Meridian Parks and Recreation
Director shall either provide written notice to MPAL of the acceptance of same, or shall
notify the MPAL Contact of any necessary amendments. Upon mailing of such written
acceptance from City, MPAL's proposed soccer camp schedules shall be known
respectively as the "Official MPAL June Soccer Camp Schedule" and the "Official
MPAL July Soccer Camp Schedule." Once established, the Official MPAL June or July
Soccer Camp Schedules may be amended only upon communication between the MPAL
Contact and the Meridian Parks and Recreation Director. MPAL shall not be guaranteed
priority use of the soccer fields at Park for the June or July Soccer Camp if the Official
MPAL June or July Soccer Camp Schedule is amended after January 31.
2. Fields. Provided that MPAL strictly adheres to the scheduling requirements as set forth
in this Agreement, during the June and July Soccer Camps, MPAL shall be entitled to
exclusive use of no more than four (4) soccer fields in Park for soccer camps scheduled in
accordance with the Official MPAL June or July Soccer Camp Schedules, which use may
preclude non-MPAL uses of the scheduled soccer fields.
3. Shelters. Provided that MPAL strictly adheres to the scheduling requirements as set
forth in this Agreement, during the June and July Soccer Camps, MPAL shall be entitled
to the use of Park shelters as follows. Between the establishment of the Official June and
July Soccer Camp Schedules as set forth herein and January 31, MPAL shall be entitled
to reserve one (1) shelter in Park during the June and July Soccer Camps, for which
reservation the shelter reservation fee shall be waived. City shall maintain the right to
reserve one (1) shelter for non-MPAL activities or uses, which reserved uses shall take
precedence over MPAL's non -reserved use of such shelter. In the event that MPAL does
AmEmmvTFORDEVELOPMENTAND.lOI1VT USEOFHEBOESPAM PAGE 9 of 14
not reserve a shelter in Park during a June and July Soccer Camp, City shall have the
right to reserve both shelters for non-MPAL activities or uses, which reserved uses shall
take precedence over MPAL's non -reserved use of such shelters. After January 31,
MPAL shall be on equal footing with the general public regarding shelter reservation
requirements, priority of reservation, and payment of shelter reservation fees.
F. Inline Hockey Season.
1. Establishment of Inline Hockey Season. By December 1 of the preceding year, MPAL
shall provide written notice to City as provided herein of the starting and ending dates of
the ten -week period in the summer of the following year during which MPAL proposes to
schedule and conduct playing surface preparation and inline hockey practice sessions and
games at Park. By December 31, the Meridian Parks and Recreation Director shall either
provide written notice to MPAL of the acceptance of same, or shall notify the MPAL
Contact of any necessary amendments. Upon City's mailing of City's written acceptance
of MPAL's proposed inline hockey season, the proposed season shall be known as the
"Inline Hockey Season." Once established, the Inline Hockey Season may be amended
only upon communication between the MPAL Contact and the Meridian Parks and
Recreation Director. MPAL shall not be guaranteed priority use of the inline hockey
facility at Park if the Inline Hockey Season is amended after January 31.
2. Establishment of Official 1VIPAL Inline Hockey Schedule. At least thirty (30) calendar
days prior to the first day of the Inline Hockey Season, MPAL shall provide written
notice to City as provided herein of its proposed practice and game schedule for the
Inline Hockey Season, which shall include proposed dates, times, and duration of each
and every inline hockey practice session and game. The proposed schedule shall also
delineate the dates, times, and duration of playing surface preparation activities to be
undertaken by MPAL prior to any and all inline hockey practice sessions and games.
Within seven (7) calendar days of receipt of the proposed schedule from MPAL, the
Meridian Parks and Recreation Director shall either provide written notice to MPAL of
the City's acceptance of same or shall notify the MPAL Contact of any necessary
amendments. Upon City's mailing of City's written acceptance of MPAL's proposed
schedule, the proposed schedule shall be known as the "Official MPAL Inline Hockey
Schedule." Once established, the Official MPAL Inline Hockey Schedule may be
amended only upon communication between the MPAL Contact and the City Contact.
MPAL shall not be guaranteed priority use of the inline hockey facility at Park if the
Official MPAL Inline Hockey Schedule is amended after January 31.
3. Inline hockey facility. Provided that MPAL strictly adheres to the scheduling
requirements as set forth in this Agreement, during the Inline Hockey Season, MPAL
shall be entitled to exclusive use of the inline hockey facility at Park for inline hockey
practice sessions, games, and playing surface preparation as scheduled in accordance
with the Official MPAL Inline Hockey Schedule for the purposes set forth therein and
under the terms set forth in this Agreement, which use shall preclude non-MPAL uses of
the inline hockey facility at Park.
AGREEMENT FOR DEVELOPMENTAND JOINT USE OFHEROES PARK PAGE 10 of 14
4. Shelters. The provisions of this Agreement regarding inline hockey shall grant MPAL
no priority use of Park shelters. With regard to the use of the inline hockey facility at
Park, MPAL shall be on equal footing with the general public regarding shelter
reservation requirements, priority of reservation, and payment of shelter reservation fees.
VL Notices.
Communication between the MPAL Contact and the City Contact regarding day-to-day matters
(e.g., issues related to use, scheduling, and maintenance of Park) shall occur via e-mail,
facsimile, or telephone. All other notices required to be given by either of the parties hereto shall
be in writing and be deemed communicated when personally served, or mailed in the United
States mail, certified, return receipt requested, addressed as follows:
City of Meridian
Attn: Parks and Recreation Director
33 E. Idaho Avenue
Meridian, Idaho 83642
Meridian Police Activities League
Attn: Commissioner
250 N. Baltic Place, Suite A
Meridian, Idaho 83642.
Either party may change its authorized representative and/or address for the purpose of this
paragraph by giving written notice of such change to the other party in the manner herein
provided.
VII. Seasonal Review.
At the conclusion of each of the following, the MPAL Contact and the City Contact shall
together review the season to address any problems which may have arisen and to discuss
possible changes to improve matters regarding the parties' joint use of Park: the Spring Soccer
Season, the June Soccer Camp, the July Soccer Camp, the Inline Hockey Season, and the Fall
Soccer Season.
V11L Conflict Resolution.
If either party believes that the other party is not fulfilling its obligations as established by this
Agreement, the complaining party shall give written notice of its complaint to the other party.
The party receiving the complaint shall, within fifteen (15) calendar days, correct the situation
and confirm the correction in writing, or reject the complaint, explaining the mitigating
circumstances and why a remedy cannot be achieved.
IX. Assignment
AQREEMENTFoR DEYELopmwTAND JOINT UsE oFHEROESPA K PAcm 11 of 14
City shall not assign or sublet all or any portion of City's interest in this Agreement or any
privilege or right hereunder, either voluntarily or involuntarily, without the prior written consent
of MPAL. MPAL shall not assign or sublet all or any portion of MPAL's interest in this
Agreement or any privilege or right hereunder, either voluntarily or involuntarily, without the
prior written consent of City. This Agreement and each and all of the terms and conditions
hereof shall apply to and are binding upon the respective organizations, legal representative,
successors, and assigns of the parties.
X. Norma enev.
Neither MPAL nor its employees, agents, contractors, officials, officers, servants, guests, and/or
invitees shall be considered agents of City in any manner or for any purpose whatsoever in their
use and occupancy of Park.
M. Indemnification.
MPAL and each and all of its employees, agents, contractors, officials, officers, servants, guests,
and/or invitees, and all participants in MPAL programming, shall indemnify and save and hold
harmless City from and for any and all losses, claims, actions, judgments for damages, or injury
to persons or property and losses and expenses caused or incurred by MPAL or any MPAL
employee, agent, contractor, official, officer, servant, guest, and/or invitee, or any participant in
or observer of MPAL programming, at or in its use of Park or any lack of maintenance or repair
thereon and not caused by or arising out of the tortious conduct of City. MPAL shall maintain,
and specifically agrees that it will maintain, throughout the term of this MOU, liability insurance
in the minimum amount as specified in the Idaho Tort Claims Act set forth in Title 6, Chapter 9
of the Idaho Code. The limits of insurance shall not be deemed a limitation of the covenants to
indemnify and save and hold harmless City; and if City becomes liable for an amount in excess
of the insurance limits herein provided due to the actions or omissions of MPAL or any MPAL
employee, agent, contractor, official, officer, servant, guest, and/or invitee, or any participant in
or observer of MPAL programming, MPAL covenants and agrees to indemnify and save and
hold harmless City from and for all such losses, claims, actions, or judgments for damages or
liability to persons or property. City makes no warranty or promise as to the condition, safety,
usefulness, or habitability of the premises; MPAL accepts Park for use as is, both at the Effective
Date of this Agreement and for each practice session, game, and/or game day.
JAIL Compliance with Laws.
In performing the scope of services required hereunder, City and MPAL shall comply with all
applicable laws, ordinances, and codes of Federal, State, and local governments.
XIII. Attorney Fees.
Should any litigation be commenced between the parties hereto concerning this Agreement, the
prevailing party shall be entitled, in addition to any other relief as may be granted, to court costs
and reasonable attorneys' fees as determined by a court of competent jurisdiction. This
AoREEMENT FOR DEVELOPMENT AND.IOINT DISE OFHEROESPAm PAGE 12 OF 14
provision shall be deemed to be a separate contract between the parties and shall survive any
default, termination or forfeiture of this Agreement.
XIV. Term of Agreement.
This Agreement shall become effective as of the Effective Date upon execution by both parties,
and shall expire twenty-two (22) years from the Effective Date unless earlier terminated or
extended in the manner as set forth in this Agreement. If the parties to this Agreement fail to
mutually extend this Agreement, and neither has terminated the Agreement, the term of this
Agreement, or such other terms as the parties have agreed upon in writing, shall be renewed
automatically for one-year periods thereafter unless terminated by either party in the manner
provided in this Agreement.
XV. Termination.
A. Grounds for termination. Grounds for termination of this Agreement shall include, but
shall not be limited to:
1. An act or omission by either party which breaches any term of this Agreement.
2. An act of nature or other unforeseeable event which precludes or makes impossible the
performance of the terms of this Agreement by either party.
3. A change in circumstances that renders the performance by either party a detriment to the
public health, safety, or welfare.
B. Termination process. Either party may terminate this Agreement by providing (6) months
advance written notice of intention to terminate. Such written notice shall include a
description of the breach or circumstances providing grounds for termination. A ninety (94)
day cure period shall commence upon mailing of the notice of intention to terminate. If,
upon the expiration of such cure period, cure of the breach or circumstances providing
grounds for termination has not occurred, this Agreement may be terminated upon provision
of written notice of termination.
XVI. Construction and Severability.
If any part of this Agreement is held to be invalid or unenforceable, such holding will not affect
the validity or enforceability of any other part of this Agreement so long as the remainder of the
Agreement is reasonably capable of completion.
XVIL Exhibits.
All exhibits to this Agreement are incorporated by reference and made a part of this Agreement
as if the exhibits were set forth in their entirety in this Agreement.
XVIII, Entire Agreement.
AGREEMENTFOR DEVELOPMENTANDJOINT USE OFHEROESPARK PAGE 13 of 14
This Agreement contains the entire agreement of the parties and supersedes any and all other
agreements or understandings, oral or written, whether previous to the execution hereof or
contemporaneous herewith.
XIX. Non -waiver.
Failure of either party to promptly enforce the strict performance of any term of this Agreement
shall not constitute a waiver or relinquishment of any party's right to thereafter enforce such
term, and any right or remedy hereunder may be asserted at any time after the governing body of
either party becomes entitled to the benefit thereof, notwithstanding delay in enforcement.
XX. Applicable Law.
This Agreement shall be governed by and construed and enforced in accordance with the laws of
the State of Idaho.
XM. Aooroval Required.
This Agreement shall not become effective or binding until approved by the respective
governing bodies of both City and MPAL.
IN WITNESS WHEREOF, the parties shall cause this Agreement to be executed by
their duly authorized officers to be effective as of the day and year first above written.
MERIDIAN POLICE ACT fflES LEAGUE:
BY:
m RoyDate
MPAL Comm sioner
CITY OF MERIDIAN:
BY:
Tammy de e d „►, u u r r rr, Date
Mayor
Attest:,ti�°R1r� y
's
SWEAL
aycee H an
City Clerk
AGREEMENT FOR DEVaoPMENTA4A; P It�OESPARK PAGE 14 of 14
prrrrrnt
EXHIBIT A.0
HEROES PARK PLAN
AGREEMEwF4R DEmopmENT AND Jaw UsE OFHEROFS' PARK EXHIBIT A
EXHIBIT B:
MORTGAGE NOTE
MORTGAGE AND SECURITY AGREEMENT
AGREEMENT FOR DEVELOPMENT AND JOINT USE OF HEROES PARK EXHIBrr B
ADA COUNTY RECORDER J. DAVID NAVARRO AMOUNT .00 17
BOISE IDAHO 09/03/08 02:05 PM
DEPUTY Bonnie Oberbillig III IIIIIIIIII'I'II'IIII'I'I'lull"II
RECORDED -REQUEST OF
Meridian City 108099408
MORTGAGE AND SECURITY AGREEMENT
THIS MORTGAGE AND SECURITY AGREEMENT effective as of August Ll
/ 2008,
by Meridian Police Activities League, Inc., a nonprofit corporation organized under the laws of
the State of Idaho, whose address is 250 N. Baltic Place, Suite A, Meridian, Idaho 83642, as
mortgagor (hereinafter "Promisor'!, and the City of Meridian, a municipal corporation organized
under the laws of the State of Idaho, whose address is 33 E. Idaho Avenue, Meridian, Idaho
83642 as mortgagee (hereinafter "Holder").
WHEREAS, Promisor is indebted to Holder in the original principal sum of Three
Hundred and Twenty -Eight Thousand Dollars ($328,000.00), which indebtedness is evidenced
and represented by that certain Mortgage Note of even date from Promisor to Holder (the
Mortgage Note together with all substitutions, consolidations, modifications, replacements,
restatements, increases, renewals, and extensions thereof in whole or in part, shall collectively
be referred to as the "Note); and
WHEREAS, Holder, as a condition precedent to the extension of credit and the making
of the loan evidenced by the Note, has required that Promisor provide Holder with security for
the repayment of the indebtedness evidenced by the Note as well as for the performance,
observance and discharge by Promisor of various covenants, conditions and agreements made by
Promisor to, with, in favor of and for the benefit of Holder with respect to such indebtedness
and security,
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged and agreed, and in consideration of the mutual promises and
covenants herein contained, Promisor and Holder agree as follows:
1. Grants of Security.
1.1 Property Granted. In consideration of and in order to secure the repayment,
observance, performance and discharge by Promisor of the Secured Obligations (as defined
below), Promisor grants, bargains, sells, aliens, remises, releases, conveys, assigns, transfers,
pledges, delivers, sets over, hypothecates, wan -ants, and confirms to Holder, as beneficiary
hereunder, subject to the terms and conditions of this Mortgage and Security Agreement, all
estate, right, title and interest that Promisor now has or may later acquire in and to the following
described properties, rights and interests and all replacements of, substitutions for, and additions
thereto (all of which are referred to below as the 'Property):
1.1.1 Real Property. The real property in Ada County, Idaho, described in
Exhibit A attached hereto and made a part hereof (the "Real Property').
1.1.2 Improvements. All buildings, structures and other improvements of any
kind, nature or description now or hereafter erected, constructed, placed or located upon the Real
Property (the "Improvements'!.
1.1.3 Appurtenances. All tenements, hereditaments, strips and gores of land,
rights-of-way, easements, privileges and other appurtenances now or hereafter belonging or in
MORTGAGE AND SEcuRITyAoREEmwr PAGE I OF 12
any way appertaining to the Real Property, including, without limitation, all right, title and
interest of the Promisor in any after-acquired right, title, interest, remainder or reversion, in and
to the beds of any ways, streets, avenues, roads, alleys, passages and public places, open or
proposed, in front of, running through, adjoining or adjacent to the Real Property, all minerals,
royalties, gas rights, water, water rights, water stock, flowers, shrubs, lawn plants, crops, trees,
timber and other emblements now or hereafter located on, under, or above all or any part of the
Real Property (the "Appurtenances'l.
11.4 Condemnation Awards. Any and all awards, payments or settlements,
including interest thereon, and the right to receive the same, as a result of (a) the exercise of the
right of eminent domain, (b) the alteration of the grade of any street, and (c) any other injury,
damage or casualty to, taking of, or decrease in the value of the Properly, to the extent of all
amounts that may be secured by this Mortgage and Security Agreement at the date of any such
award or payment, including but not limited to Reasonable Attorneys' Fees (as defined below),
costs, and disbursements incurred by Holder in connection with the collection of such award or
payment.
1.2 Secured Obligations. This Mortgage and Security Agreement and the grants,
assignments and transfers made herein are given for the purpose of securing all of the following,
in such order of priority as Holder may determine in its sole discretion (the "Secured
Obligations'):
1.2.1 The payment of the indebtedness evidenced by the Note in lawful money
of the United States of America to the extent authorized by the Note or the other Loan
Documents.
1.2.2 The performance of all other obligations of Promisor herein.
1.2.3 The performance of each obligation of Promisor in the Loan Documents in
addition to the payment of the Note.
1.2.4 The performance of each obligation in the Loan Documents of any person
guaranteeing the payment of the Note or any portion thereof or performance by Promisor of any
terms of this Mortgage and Security Agreement, if any.
1.2.5 The performance of each obligation of Promisor and any guarantor in any
renewal, extension, modification, consolidation, change, substitution, replacement for,
restatement or increase of all or any part of the Note, this Mortgage and Security Agreement or
the other Loan Documents.
2. Promisor Covenants. Promisor covenants and agrees as follows:
2.1 Payment of Note. Promisor shall pay the Note in accordance with the terms of
the Note, and shall promptly and punctually pay pursuant to the terns of the Note, this Mortgage
and Security Agreement, and all other documents and instruments executed in connection with
the indebtedness evidenced by the Note and secured by this Mortgage and Security Agreement
(hereinafter collectively referred to as the "Loan Documents'). If and when the Property or any
portion thereof is sold, through foreclosure, eminent domain, or otherwise, whether such sale is
MORTGAGEAND SEcuR1rYr1GwEmmr PAGE 2 of 12
voluntary or involuntary, prior to the receipt by Holder of payment of the Note, Holder shall
have the right, whether or not a deficiency judgment on the Note shall have been sought,
recovered or denied, to receive the award or payment, or a portion thereof sufficient to pay the
Secured Obligations.
2.2 Performance of Other Obligations. Promisor shall perform, comply with, and
abide by each and every one of the covenants, agreements and conditions contained and set forth
in the Note, this Mortgage and Security Agreement, and the other Loan Documents and shall
comply with all laws, ordinances, rales, regulations and orders of any governmental authorities
having jurisdiction over the Property that now or hereafter affect the Property or requires any
alterations or improvements to be made thereon, and shall perform all of its obligations under
any covenant, condition, restriction or agreement of record affecting the Property and shall
insure that at all times the Property constitutes one or more legal lots capable of being conveyed
without violation of any subdivision or platting laws, ordinances, rules or regulations, or other
laws relating to the division or separation of real property.
2.3 Compliance with Laws. Promisor shall observe, abide by, and comply with all
statutes, ordinances, laws, orders, requirements or decrees relating to the Property enacted,
promulgated or issued by any federal, state, county or local governmental authority or any
agency or subdivision thereof having jurisdiction over Promisor or the Property. Promisor shall
observe and comply with all conditions and requirements necessary to preserve and extend any
and all rights, licenses, permits, privileges, franchises and concessions that are or become
applicable to the Property or that have been granted to or contracted for by Promisor in
connection with any existing, presently contemplated or future use of the Property.
2A Preservation and Maintenance of Property. Promisor shall keep all
Improvements now existing or hereafter erected on the Real Property in good order and repair
and shall not do or permit any waste, impairment or deterioration thereof or thereon, nor alter,
remove, or demolish any of the Improvements without the prior written consent of Holder.
Promisor shall not do or permit any act whereby the Property shall become less valuable, be used
for purposes contrary to applicable law, or be used in any manner that will increase the premium
for or result in a termination or cancellation of the insurance policies hereinafter required to be
kept and maintained on the Property.
2.5 Hazardous Waste.
2.5.1 Promisor at all times shall keep the Property and ground waxer of the
Property free of Hazardous Materials as defined below. Promisor shall not and shall not
knowingly permit its tenants or any third party requiring the consent of Promisor to enter the
Property, to use, generate, manufacture, treat, store, release, threaten release, or dispose of
Hazardous Materials in, on, or about the Property or the ground water of the Property in violation
of any federal, regional, state, or local law, decision, statute, rule, ordinance or regulation
currently in existence or hereinafter enacted or rendered (collectively the "Hazardous Waste
Laws'). Promisor shall give Holder prompt written notice of any claim by any person, entity, or
governmental agency that a significant release or disposal of Hazardous Materials has occurred
in, on, or under the Property in excess of legal limits. Promisor, at its cost, shall promptly and
thoroughly investigate suspected Hazardous Materials contamination of the Property. Promisor
MoRmAGEE wm SEcuRnYAaREEM&v'I' PAGE 3 of 12
shall forthwith remove, repair, clean up, and/or detoxify any Hazardous Materials found on the
Property or in the ground water of the Property if such actions are required by Hazardous Waste
Laws, and whether or not Promisor was responsible for the existence of the Hazardous Materials
in, on or about the Property or the ground water of the Property. Hazardous Materials shall
include but not be limited to substances defined as "hazardous substances," "hazardous
materials," or "toxic substances" in The Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended, by the Superfimd Amendments and
Reauthorization Act of 1986, The Hazardous Materials Transportation Act of 1994. The
Resource Conservation and Recovery Act of 1976, as amended by The Used Oils Recycling Act
of 1980, The Solid Waste Disposal Act amendment of 1984, The Toxic Substances Control Act,
The Clean Air Act, The Clean Water Act, Idaho Environmental Protection and Health Act (Idaho
Code §§ 39-101 to 39-130), Idaho Radiation and Nuclear Material Act (Idaho Code §§ 39-3001
to 39-3030), Idaho Water Quality Act (Idaho Code §§ 39-3601 to 39-3639), Idaho Hazardous
Waste Management Act (Idaho Code §§ 394401 to 39-4432), Idaho Hazardous Substance
Emergency Response Act (Idaho Code §§ 39-7101 to 39-7115), Idaho Petroleum Clean Water
Trust Fund Act (Idaho Code §§ 41-4901 to 414948), Idaho Land Reclamation Act (Idaho Code
§§ 39-7201 to 39-7210), Idaho Solid Waste Facilities Act (Idaho Code §§ 39-7401 to 39-7420),
Idaho Sale and Disposal of Batteries Act (Idaho Code §§ 39-7001 to 39-7004), Idaho PCB Waste
Disposal Act (Idaho Code §§ 39-6201 to 39-6216) or in any other Hazardous Waste Laws. In
addition, Promisor shall not put any underground storage tanks on the Real Property.
2.5.2 Promisor shall indemnify Holder and hold Holder harmless from and
against any and all losses, liabilities, damages, injuries, costs, expenses and claims of any and
every kind whatsoever paid, incurred or suffered by, or asserted against Holder for, with respect
to, or as a direct or indirect result of, the presence in, on, or under, or the escape, seepage,
leakage, spillage, discharge, emission, or release from, the Property of any Hazardous Materials
(including, without limitation, any losses, liabilities, damages, injuries, costs, expenses or claims
asserted or arising under any Hazardous Waste Laws), regardless of the source of origination and
whether or not caused by, or within the control of, Promisor.
2.6 Accessibility. Promisor at all times shall maintain the Property in full compliance
with all existing and hereafter enacted federal, state, county, regional or local laws, ordinances,
rules and regulations governing accessibility for the disabled, including but not limited to The
Architectural Barriers Act of 1968, The Rehabilitation Act of 1973, The Fair Housing Act of
1988, and The Americans with Disabilities Act (the "Accessibility Laws"). Promisor shall
indemnify Holder and hold Holder harmless from and against any and all losses, liabilities,
damages, injuries, costs, expenses and claims of any and every kind whatsoever paid, incurred or
suffered by, or asserted against Holder for, with respect to, or as a direct or indirect result of, the
non-compliance of the Property with the Accessibility Laws whether or not caused by, or within
the control of, Promisor.
2.7 Payment of Taxes, Assessments and Other Charges.
2.7.1 Promisor shall pay all taxes, assessments, and other charges- that are or
may be hereafter levied or assessed upon or against the Property, when the same shall become
due and payable according to law, before the same become delinquent, and before any interest or
penalty shall attach thereto. Promisor shall deliver official receipts evidencing the payment of
MORT GAGRAND SECuRrryA GREFxEw PAGE 4 OF 12
the same to Holder not later than thirty (30) days following payment. Promisor shall have the
right to contest, in good faith, the proposed assessment of ad valorem taxes or special
assessments by governmental authorities having jurisdiction over the Property; provided,
however, Promisor shall give written notice thereof to Holder and Holder may, in its sole
discretion, require Promisor to post a bond or other collateral satisfactory to Holder in
connection with any such action by Promisor.
2.7.2 Promisor represents and warrants to Holder that Promisor has filed all
federal, state, county, municipal, and city income and other tax returns required to have been
filed by it and have paid all taxes and related liabilities which have become due pursuant to such
returns or pursuant to any assessments received by it. Promisor does not know of any basis for
any additional assessment in respect of any such taxes and related liabilities for prior years.
2.8 Payment of Liens, Charges and Encumbrances. Promisor shall immediately
pay and discharge from time to time when the same shall become due all lawful claims and
demands of mechanics, materialmen, laborers and others that, if unpaid, might result in, or
permit the creation ofy a lien, charge or encumbrance upon the Property or any part thereof',
and/or to do or cause to be done everything necessary so that the lien of this Mortgage and
Security Agreement shall be fully preserved, at the cost of Promisor, without expense to Holder.
2.9 Payment of Mortgage Taxes. Promisor shall pay any and all taxes that may be
levied or assessed directly or indirectly upon the Note and/or this Mortgage and Security
Agreement or the debt secured hereby, without regard to any law that may be hereafter enacted
imposing payment of the whole or any part thereof upon Holder, its successors or assigns.
2.10 Insurance.
2.10.1 Promisor shall obtain and maintain, or cause to be maintained, insurance
for Promisor and the Property providing at least the following coverages:
(a) Property Insurance. If and/or when applicable, insurance with
respect to the Improvements and building equipment insuring against any peril in an amount
equal to amounts at all times sufficient to prevent Holder from becoming a co-insurer within the
terms of the applicable policies and under applicable law, but in any event such insurance shall
be maintained in an amount equal to the full insurable value of the Improvements and building
equipment on the Property. The term 'W insurable value" means the actual replacement cost of
the Improvements and building equipment (without taking into account any depreciation, and
exclusive of excavations, footings and foundations, landscaping, and paving) determined
annually by an insurer, a recognized independent insurance broker, or an independent appraiser.
The Policy shall provide that: (i) all proceeds be payable to Holder as set forth in this Mortgage
and Security Agreement and shall contain a standard "non-contributory mortgagee" endorsement
or its equivalent relating, inter alis, to recovery by Holder notwithstanding the negligent or
willful acts or omission of Promisor, and (ii) a provision that such policy shall not be canceled or
terminated, nor shall it expire, without at least thirty (30) days' prior written notice to Holder.
(b) Liability Insurance. General liability insurance, including bodily
injury, death and property damage liability insurance, against any and all claims, including all
MORTGAGE AND SECMTYAGREEMENT PAGE 5 OF 12
legal liability to the extent insurable and imposed upon Holder and all court costs and attorneys'
fees and expenses, arising out of or connected with the possession, use, leasing, operation,
maintenance or condition of the Property in such amounts as are generally available at
commercially reasonable premiums and are generally required by institutional Holders for
properties comparable to the Property but in no event for a combined single limit of less than
,. The Policy shall name Holder as an additional named insured and shall contain a
provision that such policy shall not be canceled or terminated, nor shall it expire, without at least
thirty (30) days' prior written notice to Holder.
2.10.2 Promisor shall comply with all insurance requirements and shall not bring
or keep or permit to be brought or kept any article upon any of the Property or cause or permit
any condition to exist thereon that would be prohibited by an insurance requirement, or would
invalidate the insurance coverage required hereunder to be maintained by Promisor on or with
respect to any part of the Property pursuant to this Section.
2.10.3 If the Property shall be damaged or destroyed, in whole or in part, by fire
or other casualty, Promisor shall give prompt notice of such damage to Holder and Promisor
shall promptly commence and diligently prosecute the completion of the repair and restoration of
the property as nearly as possible to the condition the Property was in immediately prior to such
fire or other casualty.
2.10.4 The insurance coverage required hereunder may be effected under a
blanket policy or policies covering the Property and other properties and assets not constituting a
part of the security hereunder, provided that any such blanket policy shall specify, except in the
case of public liability insurance, the portion of the total coverage of such policy that is allocated
to the Property, and any sublimit in such blanket policy applicable to the Property, and shall in
any case comply in all other respects with the requirements of this Section.
2.10.5 Promisor waives any and all right to claim or recover against Holder, its
officers, employees, agents and representatives, by way of subrogation or otherwise, for any loss
sustained by Promisor, or any loss or damage to the Property, Promisor's property or the
property of others under Promisor's control from any cause insured against or required to be
insured against by the provisions of this Mortgage and Security Agreement.
2.11 Condemnation. Promisor shall promptly give Holder notice of the actual or
threatened commencement of any condemnation or eminent domain proceeding and shall deliver
to Holder copies of any and all papers served in connection with such proceedings. Holder may
participate in any such proceedings to the extent permitted by law. Promisor shall, at its
expense, diligently prosecute any such proceedings, and shall consult with Holder, its attorneys
and experts, and cooperate with them in the carrying on or defense of any such proceedings.
Notwifttanding any taking by any public or quasi -public authority through eminent domain or
otherwise (including, but not limited to any transfer made in lieu of or in anticipation of the
exercise of such taking), Promisor shall pay the Secured Obligations in the manner provided for
its payment in the Note and in this Mortgage and Security Agreement.
2.12 Examination of Promisor's Records and Premises.
MORMAOE AND SECURNT! AGMEUMT PAGE 6 OF 12
2.12.1 Promisor shall maintain complete and accurate books and records showing
in detail the income and expenses of the Property, and shall permit Holder and its representatives
to examine such books and records and all supporting vouchers and data during normal business
hours and from time to time upon request by Holder, in such place as such books and records are
customarily kept. Upon the occurrence of an Event of Default, Holder shall have the right to
require that the financial statements be audited and certified by a certified public accountant
acceptable to Holder, at the sole cost and expense of Promisor.
2.12.2 Holder, and/or its agents, shall have the right and shall be permitted, but
shall not be required, at all reasonable times, to enter upon and inspect the Property to insure
compliance with the covenants, agreements, and conditions set forth in this Mortgage and
Security Agreement.
3. Warranty of Title. Promisor represents and warrants to Holder that Promisor has good
title to the Property and has the right to mortgage, grant, bargain, sell, pledge, assign, warrant,
transfer and convey the same and that Promisor possesses a fee simple absolute estate in the Real
Property and that it owns the Property free and clear of all liens, encumbrances and charges
whatsoever except for two prior mortgages and real property taxes for years subsequent to 2008,
which are not yet due and payable (the "Permitted Exceptions'). Promisor shall forever warrant,
defend and preserve the title and the validity and priority of the Lien of this Mortgage and
Security Agreement and shall forever warrant and defend the same to Holder against the claims
of all persons whomsoever.
4. Further Encumbrance Prohibited. Promisor shall not, without the prior written
consent of Holder, mortgage, grant, bargain., encumber, pledge, assign, or otherwise transfer the
Property or any part thereof or permit the Property or any part thereof to be mortgaged, granted,
bargained, encumbered, pledged, assigned, or otherwise transferred.
5. Default. The occurrence of any one or more of the following events shall constitute an
"Event of Default":
5.1 Failure to make any payment of the entire amount of the Secured Obligations in
accordance with the terms of the Note, this Mortgage and Security Agreement, and all other
Loan Documents.
5.2 if any representation or warranty of Promisor, or any member, general partner,
principal or beneficial owner of any of the foregoing, made herein, or in any other Loan
Document, or in any guaranty, or in any certificate, report, financial statement or other
instrument or document famished to Holder shall have been false or misleading in any material
respect when made.
5.3 If (i) Promisor or any Guarantor shall commence any case, proceeding or other
action (A) under any existing or future law of any jurisdiction, domestic or foreign, relaxing to
bankruptcy, insolvency, reorganization, conservatorship or relief of debtors, seeking to have an
order for relief entered with respect to it, or seeking to adjudicate it a bankrupt or insolvent, or
seeking reorganization, arrangement, adjustment, winding -up, liquidation, dissolution,
composition or other relief with respect to it or its debts, or (B) seeking appointment of a
MORTOAGE AND SEcuuNAGmEMENT PAGE 7 of 12
receiver, trustee, custodian, conservator or other similar official for it or for all or any substantial
part of its assets, or the Promisor or any Guarantor shall make a general assignment for the
benefit of its creditors; or (ii) there shall be commenced against Promisor or any Guarantor any
case, proceeding or other action of a nature referred to in clause (i) above which (A) results in
the entry of an order for relief or any such adjudication or appointment or (13) remains
undismissed, undischarged or unbonded for a period of sixty (60) days; or (iii) there shall be
commenced against the Promisor or any Guarantor any case, proceeding or other action seeking
issuance of a warrant of attachment, execution, distraint or similar process against all or any
substantial part of its assets which results in the entry of any order for any such relief which shall
not have been vacated, discharged, or stayed or bonded pending appeal within sixty (60) days
from the entry thereof; or (iv) the Promisor or any Guarantor shall take any action in furtherance
of or indicating its consent to, approval of, or acquiescence in, any of the acts set forth in clause
(i), (ii), or (iii) above; or (v) the Promisor or any Guarantor shall generally not, or shall be unable
to, or shall admit in writing its inability to, pay its debts as they become due.
5.4 Except for the specific defaults set forth in this Section, any other default under
any Loan Document by Promisor, which default is not cured within thirty (30) days after written
notice from Holder to Promisor; provided that if such default cannot reasonably be cured within
such thirty (30) day period. and Promisor shall have commenced to cure such default within such
thirty (30) day period and thereafter diligently and expeditiously proceeds to cure the same, such
thirty (30) day period shall be extended for so long as it shall require Promisor in the exercise of
due diligence to cure such default, it being agreed that no such extension shall be for a period in
excess of ninety (90) days, unless, only in the case of cures that require construction or remedial
work, such cure cannot with diligence be completed within such ninety (90) day period, in which
case such period shall be extended for an additional ninety (90) days.
6. Rights and Remedies.
6.1 Remedies. Upon the occurrence of any Event of Default, Holder may take such
action, without notice or demand, as it deems advisable to protect and enforce its rights against
Promisor and in and to the Property, including, but not limited to the following actions, each of
which may, to the extent permitted by applicable law, be pursued concurrently or otherwise, at
such time and in such order as Holder may determine, in its sole discretion, without impairing or
otherwise affecting the other rights and remedies of Holder:
6.1.1 Declare the entire unpaid Secured Obligations to be immediately due and
payable.
6.1.2 Institute proceedings, judicial or otherwise, for the complete foreclosure of
this Mortgage under any applicable provision of law in which case the Property or any interest
therein may be sold for cash or upon credit in one or more parcels or in several interests or
portions and in any order or manner.
6.1.3 Institute an action, suit or proceeding in equity for the specific
performance of any covenant, condition or agreement contained herein, in the Note or in the
other Loan Documents.
MORTGAGE AND SscuRrrYAGREmmT PADS 8 OF 12
6.1A Apply for the appointment of a receiver, trustee, liquidator or conservator
of the Property, without notice and without regard for the adequacy of the security for the
Secured Obligations and without regard for the solvency of Promisor or of any person, firm or
other entity liable for the payment of the Secured Obligations.
6.1.5 Subject to any applicable law, Holder may enter into or upon the Property,
either personally or by its agents, nominees or attorneys and dispossess Promisor and its agents
and servants therefrom, without liability for trespass, damages or otherwise and exclude
Promisor and its agents or servants wholly therefrom, and Promisor agrees to surrender
possession of the Property to Holder upon demand, and thereupon Holder may (i) use, operate,
manage, control, insure, maintain, repair, restore and otherwise deal with all and every part of the
Property, (ii) apply the receipts from the Property to the payment of the Secured Obligations
after deducting therefrom all expenses (including Reasonable Attorneys' Fees) incurred in
connection with the aforesaid operations and all amounts necessary to pay the Taxes, Other
Charges, insurance and other expenses in connection with the Property, as well as just and
reasonable compensation for the services of Holder, its counsel, agents and employees.
6.1.6 Pursue such other remedies as Holder may have under applicable law.
Notwithstanding the provisions of this Section to the contrary, if any Event of Default
shall occur, the entire unpaid Secured Obligations shall be automatically due and payable,
without any farther notice, demand or other action by Holder.
6.2 Right to Cure Defaults. Upon the occurrence of any Event of Default, Holder
may, but without any obligation to do so and without notice to or demand on Promisor and
without releasing Promisor from any obligation hereunder, cure the same in such manner and to
such extent as Halder may deem necessary to protect the security hereof. Holder is authorized to
enter upon the Property for such purposes, or appear in, defend, or bring any action or
proceeding to protect its interest in the Property or to foreclose this Mortgage and Security
Agreement or collect the Secured Obligations, and the cost and expense thereof (including
Reasonable Attorneys' Fees to the extent permitted by law) shall constitute a portion of the
Secured Obligations and shall be due and payable to Holder upon demand. All such costs and
expenses incurred. by Holder in remedying such Event of Default or in appearing in, defending,
or bringing any such action or proceeding shall bear interest at the statutory rate for the period
after notice from Holder that such cost or expense was incurred to the date of payment to Holder.
All such costs and expenses incurred by Holder together with interest thereon calculated at the
statutory rate shall be deemed to constitute a portion of the Secured Obligations and be secured
by this Mortgage and Security Agreement and the other Loan Documents and shall be
immediately due and payable upon demand by Holder therefor.
6.3 Other Rights.
6.3.1 The failure of Holder to insist upon strict performance of any term hereof
shall not be deemed to be a waiver of any term of this Mortgage and Security Agreement.
Promisor shall not be relieved of Promisor's obligations hereunder by reason of (i) the failure of
Holder to comply with any request of Promisor to take any action to foreclose this Mortgage and
Security Agreement or otherwise enforce any of the provisions hereof or of the Note or the other
MOMAGEAND SEcuRrryAaREEMENT PAGE 9 of 12
Loan Documents, (ii) the release, regardless of consideration, of the whole or any part of the
Property, or of any person liable for the Secured Obligations or any portion thereof, or (iii) any
agreement or stipulation by Holder modifying or supplementing the terms of the Note, this
Mortgage and Security Agreement or the other Loan Documents.
6.3.2 The risk of loss or damage to the Property is on Promisor, and Holder
shall have no liability whatsoever for decline in value of the Property, for failure to maintain the
insurance policies required hereunder, or for failure to determine whether insurance in force is
adequate as to the amount of risks insured.
6.3.3 Holder may take action to enforce any covenant hereof without prejudice
to the right of Holder thereafter to foreclose this Mortgage. The rights of Holder under this
Mortgage and Security Agreement shall be separate, distinct and cumulative and none shall be
given effect to the exclusion of the others. No act of Holder shall be construed as an election to
proceed under any one provision herein to the exclusion of any other provision. Holder shall not
be limited exclusively to the rights and remedies herein stated but shall be entitled to every right
and remedy now or hereafter afforded at law or in equity.
7. Indemnification. If Holder shall become a party either as plaintiff or as defendant, in
any action, suit, appeal or legal proceeding (including, without limitation, foreclosure,
condemnation, bankruptcy, administrative proceedings or any proceeding wherein proof of claim
is by law required to be Sled), hearing, motion or application before any court or administrative
body in relation to the Property or the lien and security interest granted or created hereby or
herein, or for the recovery or protection of said indebtedness or the Property, or for the
foreclosure of this Mortgage, Promisor shall save and hold Holder harmless from and against any
and all costs and expenses incurred by Holder on account thereof, including, but not limited to,
Reasonable Attorneys' Fees, title searches and abstract and survey charges, at all trial and
appellate levels, and Promisor shall repay, on demand, all such costs and expenses, together with
interest thereon; all of which sums, if unpaid, shall be added to and become a part of the
indebtedness secured hereby.
8. Usury Savings Clause. Notwithstanding any provisions in the Note or in this Mortgage
and Security Agreement to the contrary, the total liability for payments in the nature of interest
including but not limited to default interest shall not exceed the limits imposed by the laws of the
State of Idaho or, if controlling, the United States relating to maximum allowable charges of
interest. Holder shall not be entitled to receive, collect or apply, as interest on the indebtedness
evidenced by the Note, any amount in excess of the maximum lawful rate of interest permitted to
be charged by applicable law. If Holder ever receives, collects or applies as interest any such
excess, such amount that would be excessive interest shall be applied to reduce the unpaid
balance of the indebtedness evidenced by the Note. If the unpaid balance of such indebtedness
has been paid in full, any remaining excess shall be paid to Promisor.
9. Notices. All notices or other written communications hereunder shall be deemed to have
been properly given (a) upon delivery, if delivered in person or by facsimile transmission with
receipt acknowledged by the recipient thereof, (b) one (1) business day after having been
deposited for overnight delivery with any reputable overnight courier service, or (c) three (3)
business days after having been deposited in any post office or mail depository regularly
MORY'GAGEAND SECURn7AGREE&mT PAGE 10 OF 12
maintained by the U.S. Postal Service and sent by registered or certified mail, postage prepaid,
return receipt requested, addressed as follows:
If to Promisor: Meridian Police Activities League, Inc.
Attn: Commissioner
250 N. Baltic Place, Suite A
Meridian, ID 83642
If to Holder. City of Meridian
Attn: City Attorney
33 E. Idaho Avenue
Meridian, ID 83642
Either party by notice to the other may designate additional or different addresses for subsequent
notices or communications.
10. Governing Law. This Mortgage and Security Agreement is to be governed by and
construed in accordance with the laws of the state of Idaho and, if controlling, by the laws of the
United States and shall be binding upon Promisor, its heirs, personal representatives, successors
and assigns and shall inure to the benefit of Holder, its successors and assigns. All rights,
powers and remedies provided in this Mortgage and Security Agreement may be exercised only
to the extent that the exercise thereof does not violate any applicable provisions of law and are
intended to be limited to the extent necessary so that they will not render this Mortgage and
Security Agreement invalid, unenforceable or not entitled to be recorded, registered or filed
under the provisions of any Applicable Law.
11. Terminology. The provisions hereof shall be binding upon Promisor and the heirs,
personal representatives, successors and assigns of Promisor, and shall inure to the benefit of
Holder, its successors and assigns. Where more than one Promisor is named herein, the
obligations and liabilities of said Promisor shall be joint and several. Wherever used in this
Mortgage and Security Agreement, unless the context clearly indicates a contrary intent or unless
otherwise specifically provided herein, the word "Promisor" shall mean Promisor and/or any
subsequent owner or owners of the Property, the word "Holder" shall mean Holder or any
subsequent holder or holders of this Mortgage and Security Agreement, the word "Note" shall
mean the Note secured by this Mortgage and Security Agreement, and the word "person" shall
mean an individual, trustee, trust, corporation, partnership or unincorporated association. As
used herein, the phrase "Reasonable Attorneys' Fees" shall mean fees charged by attorneys
selected by Holder based upon such attorneys' then prevailing hourly rates as opposed to any
statutory presumption specified by any statute then in effect in the State of Idaho.
12. Inapplicable Provisions. If any term of this Mortgage or any application thereof shall
be invalid or unenforceable, the remainder of this Mortgage and any other application of the term
shall not be affected thereby.
13. Modifications. This Mortgage and Security Agreement cannot be changed, altered,
amended or modified except by an agreement in writing and in recordable form, executed by
both Promisor and Holder.
MORTGAGEAND SECURrryAGRErwmv ' PAGE I I OF 12
14. Captions. The captions set forth at the beginning of the various sections of this
Mortgage and Security Agreement are for convenience only and shall not be used to interpret or
construe the provisions of this Mortgage and Security Agreement.
15. Entire Agreement. The Note, this Mortgage and Security Agreement and the other
Loan Documents constitute the entire understanding and agreement between Promisor and
Holder with respect to the transactions arising in connection with the Secured Obligations and
supersede all prior written or oral understandings and agreements between Promisor and Holder
with respect thereto.
IN WITNESS WHEREOF, Promisor has executed this Mortgage and Security
Agreement as of the day and year first written above.
PROMISOR
Meridian Police Activities League, Inc.
y: To , Commissioner
STATE OF IDAHO )
ss:
County of ADA )
I HEREBY CERTIFY that on this /L day of August, 2008, before the undersigned, a
Notary Public in the State of Idaho, personally appeared TOM ROY, known to me to be the
person who executed the said instrument, and acknowledged to me that he executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal, the
day and yeadf- MeW ificate first above written. e // �
%¢,.
�OTgRr ._
_vim
B
iblic for Idaho
at & ' sd, Idaho
nission Expires: ��zo ill
IN WITNE®®, HEREOF, Holder has executed this Mortgage and Security
Agreement as of the day and year first written above,
Attest:
crr
� s
City Clerk SEAL =
fill ,.WO
MORWAG,ff,WD SECUAn7.40REEMENT PAGE 12 of 12
EXHIBIT A:
DESCRIPTION OF REAL PROPERTY
MORTGAGE AND SEcuBnYAGREEMENT EXEIIBIT A
Code Code Reissue Aunt. state Cty
049 11 12
Fie No.: Poli o.: Date of Policti•: Amt. of Insurance:
291486 ZB213309 March 3, 2008 at 7:30:00 $10,000.00
AM
Old Republic National Title Insurance Company
LITIGATION GUARANTEE
SCHEDULE A
Prop T�
1
Premium Amt.
$200.00
1. Name of Assured:
Meridian Police Activities League, Inc.
2. Title to said estate or interest at the date hereof is vested in:
Meridian Police Activities League, Inc.
3. The estate or interest in the land hereinafter described or referred to covered by this Guarantee is:
Fee Simple
4. The land referred to in this Guarantee is situated in the State of Idaho, County of Ada and is described
as follows:
(1) SEE ATTACHED EXHIBIT A
Schedule A page 1 of 2 page(s)
Old Republic National Title Insurance Company
LITIGATION GUARANTEE
SCHEDULE A
EXHIBIT A
(1)
A parcel of land located in the Southeast quarter of Section 26, Township 2 North, Range 1 East, Boise
Meridian, Ada County, Idaho, being more particularly described as follows:
The South half of the Northeast quarter of the Southeast quarter of Section 26, the East half of the
Southwest quarter of the Southeast quarter of Section 26, the Southeast quarter of the Southeast quarter of
Section 26.
Beginning at a brass cap marking the Southeast comer of said Section 26, said brass cap described in
CP&F #103166014, Ada County Official Records;
Thence along the South line of the Southeast quarter of Section 26, North 89'18'45" West, 1957.30 feet to
the West line of the East half of the Southwest quarter of the Southeast quarter of Section 26;
Thence along said West line, North 00° 13'40" West, 1325.39 feet to the North line of said East half of the
Southwest quarter of the Southeast quarter of Section 26;
Thence along said North line, South 89°31' 14" East, 653.83 feet to the West line of the South half of the
Northeast quarter of the Southeast quarter;
Thence along said West line, North 00°09'57" West, 663.87 feet to the north line of said South half of the
Northeast quarter of the Southeast quarter;
Thence along said North line, South 89°37'28" East, 1309.08 feet to the East line of the Southeast quarter
of Section 26, said'East line being the centerline of S. Maple Grove Road;
Thence along the said East line and said centerline, South 00002'34" East, 1998.69 feet to the TRUE
POINT OF BEGINNING.
Schedule A page 2 of 2 page(s)
MORTGAGE NOTE
$328,000.00
Ada County, Idaho
August Lt 2008
FOR VALUE RECEIVED, the undersigned Meridian Police Activities League, Inc., a
nonprofit corporation organized under the laws of the State of Idaho, whose address is 250 N.
Baltic Place, Suite A, Meridian, Idaho 83642 (hereinafter "Promisor"), promises to pay to the
order of the City of Meridian, a municipal corporation organized under the laws of the State of
Idaho, whose address is 33 E. Idaho Avenue, Meridian, Idaho 83642 its successors and assigns
(the "Holder") the sum of Three Hundred and Twenty -Eight Thousand Dollars ($328,000.00), in
lawful money of the United States of America which shall be legal tender in payment of all debts
at the time of such payment. The sum due hereunder shall be payable at the office of Holder at
33 East Idaho Avenue, Meridian, Idaho 83642, or at such other place as Holder may from time to
time designate. Said principal shall be paid in the manner set forth below.
1. Interest. No interest shall accrue on the unpaid balance of this Note.
2. Maturity. The unpaid balance of this Note, if not sooner paid, shall be due and payable in
full upon sale of the Property as defined below by Promisor (the "Maturity Date').
3. Prepayment. Promisor shall have the right to prepay all or any part of the obligation
evidenced by this Note at any time.
4. Additional Conditions. This Note is secured by, and subject to the terms of, a Mortgage
and Security Agreement of even date herewith encumbering certain real property located in
the County of Ada, State of Idaho and other property as more particularly described in the
Mortgage and Security Agreement (hereinafter ` Property'l. This Note, the Mortgage and
Security Agreement, and all other documents and instruments executed as further evidence
of as additional security for, or executed in connection with the indebtedness evidenced by
this Note are collectively referred to as the "Loan Documents"
5. Full Recourse. The liability of Promisor with respect to payment hereunder shall be "full
recourse" and, accordingly, Holder's source of satisfaction of said indebtedness and
Promisor's other obligations hereunder and under the other Loan Documents shall not be
limited to the Property. Upon the Maturity Date, Holder may seek to procure payment for
any deficiency out of any other assets of Promisor, or any person or entity comprising
Promisor, or to seek judgment for any sums which are or may be payable under this Note or
under any of the other Loan Documents.
6. Idaho Law. This Note is made in the state of Idaho, which state the parties agree has a
substantial relationship to the parties and to the underlying transaction embodied hereby.
Accordingly, in all respects, this Note and the Loan Documents and the obligations arising
hereunder and thereunder shall be governed by, and construed in accordance with, the laws
of the state of Idaho applicable to contracts made and performed in such state and any
applicable law of the United States of America. Each party unconditionally and irrevocably
MnRrmrm. Mem PAnV 1 n17?
waives, to the fullest extent permitted by law, any claim to assert that the law of any
jurisdiction other than the state of Idaho governs this Note and the Loan Documents.
7. Captions. The captions set forth at the beginning of the various paragraphs of this Note are
for convenience only and shall not be used to interpret or construe the provisions of this
Note.
& Savings Clause. If any clauses or provisions herein contained operate or would
prospectively operate to invalidate this Note, then such clauses or provisions only shall be
held for naught, as though not herein contained and the remainder of this Note shall remain
operative and in fiill force and effect.
IN WITNESS WHEREOF, Promisor has executed this Note as of the day and year
first above written.
PROMISOR
Meridi olice Activities League, Inc.
t:
, , /'/' '--�
y: Tom y mmissioner
STATE OF IDAHO )
} ss:
County of ADA )
I HEREBY CERTIFY that on this % I day of August, 2008, before the undersigned, a
Notary Public in the State of Idaho, personally appeared TOM ROY, known to me to be the
person who executed the said instrument, and acknowledged to me that he executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal, the
day and yg tb}i�cate first above 'tten.
* N i ublic r I o
R g at e ,Idaho
J. °�ao om'/2
mission Expires: -0 oil _
,I f,�
IN WITNESS WHEREOF, Holder has executed this Note as of the day and year
first above written.
HOLDER:
City of Meridian
By: Tmle Weerd, Mayor
MnVMAnF WnTF
lllldfretx
Attest: G�
' o
a o City F7.er -SEAL
.9 '
JIM,
��rurrrl n1n11
MORTGAGE NOTE
$3289,000.00
Ada County, Idaho
August J_ff , 2008
FOR VALUE RECEIVED, the undersigned Meridian Police Activities League, Inc., a
nonprofit corporation organized under the laws of the State of Idaho, whose address is 250 N.
Baltic Place, Suite A, Meridian, Idaho 83642 (hereinafter "Promisor'), promises to pay to the
order of the City of Meridian, a municipal corporation organized under the laws of the State of
Idaho, whose address is 33 E. Idaho Avenue, Meridian, Idaho 83642 its successors and assigns
(the "Holder") the sum of Three Hundred and Twenty -Eight Thousand Dollars ($328,000.00), in
lawful money of the United States of America which shall be legal tender in payment of all debts
at the time of such payment. The sum due hereunder shall be payable at the office of Holder at
33 East Idaho Avenue, Meridian, Idaho 83642, or at such other place as Holder may from time to
time designate. Said principal shall be paid in the manner set forth below.
1. Interest No interest shall accrue on the unpaid balance of this Note.
2. Maturity. The unpaid balance of this Note, if not sooner paid, shall be due and payable in
full upon sale of the Property as defined below by Promisor (the "Maturity Date'.
3. Prepayment. Promisor shall have the right to prepay all or any part of the obligation
evidenced by this Note at any time.
4. Additional Conditions. This Note is secured by, and subject to the terms of, a Mortgage
and Security Agreement of even date herewith encumbering certain real property located in
the County of Ada, State of Idaho and other property as more particularly described in the
Mortgage and Security Agreement (hereinafter "Property"). This Note, the Mortgage and
Security Agreement, and all other documents and instruments executed as further evidence
of, as additional security for, or executed in connection with the indebtedness evidenced by
this Note are collectively referred to as the "Loan Documents."
5. loll Recourse. The liability of Promisor with respect to payment hereunder shall be "full
recourse" and, accordingly, Holder's source of satisfaction of said indebtedness and
Promisor's other obligations hereunder and under the other Loan Documents shall not be
limited to the Property. Upon the Maturity Date, Holder may seek to procure payment for
any deficiency out of any other assets of Promisor, or any person or entity comprising
Promisor, or to seek judgment for any sums which are or may be payable under this Note or
under any of the other Loan Documents.
6. Idaho Law. This Note is made in the state of Idaho, which state the parties agree has a
substantial relationship to the parties and to the underlying transaction embodied hereby.
Accordingly, in all respects, this Note and the Loan Documents and the obligations arising
hereunder and thereunder shall be governed by, and construed in accordance with, the laws
of the state of Idaho applicable to contracts made and performed in such state and any
applicable law of the United States of America. Each party unconditionally and irrevocably
MOMWOENOTE PAGE 1 OF
waives, to the fullest extent permitted by law, any claim to assert that the law of any
jurisdiction other than the state of Idaho governs this Note and the Loan Documents.
7. Captions. The captions set forth at the beginning of the various paragraphs of this Note are
for convenience only and shall not be used to interpret or construe the provisions of this
Note.
8. Savings Clause. If any clauses or provisions herein contained operate or would
prospectively operate to invalidate this Note, then such clauses or provisions only shall be
held for naught, as though not herein contained and the remainder of this Note shall remain
operative and in full force and effect.
IN WITNESS WHEREOF, Promisor has executed this Note as of the day and year
first above written.
PROMISOR
Meridian Police tivities Lea e, Inc.
y: T , Commissioner
STATE OF IDAHO )
ss:
County of ADA )
I HEREBY CERTIFY that on this L�_ day of August, 2008, before the undersigned, a
Notary Public in the State of Idaho, personally appeared TOM ROY, known to me to be the
person who executed the said instrument, and acknowledged to me that he executed the same.
IN VMMSS WHEREOF, I have hereunto set my hand and affixed my official seal, the
q�s
day and Locate first ab49 ov 'tten, r
e •
oT,4�,d Not Public o Idaho
Y m
• •� duigat /S� Idaho
• ^ O s
f- C ' ` y Commission Expires:
eeoe�? �bWeeNe•' �0,�,�
W VVYTN� WHEREOF, Halder has executed this Note as of the day and year
first above written.
HOLDER: ```,,� ��►►,,,��/��'
City of Meridi Attest: : ������,�•� h,9y
By: Tamm a or aycee Uolman, Ci* Cl k SZ
s T
2OF
MORMOENOTL
MORTGAGE AND SECURITY AGREEMENT
THIS MORTGAGE AND SECURITY AGREEMENT effective as of August Z/ 2008,
by Meridian Police Activities League, Inc., a nonprofit corporation organized under the laws of
the State of Idaho, whose address is 250 N. Baltic Place, Suite A, Meridian, Idaho 83642, as
mortgagor (hereinafter "Promisor'), and the City of Meridian, a municipal corporation organized
under the laws of the State of Idaho, whose address is 33 E. Idaho Avenue, Meridian, Idaho
83542 as mortgagee (hereinafter "Holder").
WHEREAS, Promisor is indebted to Holder in the original principal sum of Three
Hundred and Twenty -Eight Thousand Dollars ($328,000.00), which indebtedness is evidenced
and represented by that certain Mortgage Note of even date from Promisor to Holder (the
Mortgage Note together with all substitutions, consolidations, modifications, replacements,
restatements, increases, renewals, and extensions thereof, in whole or in part, shall collectively
be referred to as the "Note"); and
WHEREAS, Holder, as a condition precedent to the extension of credit and the making
of the loan evidenced by the Note, has required that Promisor provide Holder with security for
the repayment of the indebtedness evidenced by the Note as well as for the performance,
observance and discharge by Promisor of various covenants, conditions and agreements made by
Promisor to, with, in favor of, and for the benefit of, Holder with respect to such indebtedness
and security,
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged and agreed, and in consideration of the mutual promises and
covenants herein contained, Promisor and Holder agree as follows:
1. Grants of Security.
1.1 Property Granted. In consideration of and in order to secure the repayment,
observance, performance and discharge by Promisor of the Secured Obligations (as defined
below), Promisor grants, bargains, sells, aliens, remises, releases, conveys, assigns, transfers,
pledges, delivers, sets over, hypothecates, warrants, and confirms to Holder, as beneficiary
hereunder, subject to the terms and conditions of this Mortgage and Security Agreement, all
estate, right, title and interest that Promisor now has or may later acquire in and to the following
described properties, rights and interests and all replacements of, substitutions for, and additions
thereto (all of which are referred to below as the "Property':
1.1.1 Real Property. The real property in Ada County, Idaho, described in
Exhibit A attached hereto and made a part hereof (the "Real Property").
1.1.2 Improvements. All buildings, structures and other improvements of any
kind, nature or description now or hereafter erected, constructed, placed or located upon the Real
Property (the "Improvements").
1.1.3 Appurtenances. All tenements, hereditaments, strips and gores. of land,
rights-of-way, easements, privileges and other appurtenances now or hereafter belonging or in
M0RTGA0EANDSECUWYA0M&V NT PAoE 1 op 12
any way appertaining to the Real Property, including, without limitation, all right, title and
interest of the Promisor in any after-acquired right, title, interest, remainder or reversion, in and
to the beds of any ways, streets, avenues, roads, alleys, passages and public places, open or
proposed, in front of, running through, adjoining or adjacent to the Real Property; all minerals,
royalties, gas rights, water, water rights, water stock, flowers, shrubs, lawn plants, crops, trees,
timber and other emblements now or hereafter located on, under, or above all or any part of the
Real Property (the "Appurtenances').
1.1.4 Condemnation Awards. Any and all awards, payments or settlements,
including interest thereon, and the right to receive the same, as a result of (a) the exercise of the
right of eminent domain, (b) the alteration of the grade of any street, and (c) any other injury,
damage or casualty to, taking of, or decrease in the value of the Property, to the extent of all
amounts that may be secured by this Mortgage and Security Agreement at the date of any such
award or payment, including but not limited to Reasonable Attorneys' Fees (as defined below),
costs, and disbursements incurred by Holder in connection with the collection of such award or
payment.
1.2 Secured Obligations. This Mortgage and Security Agreement and the grants,
assignments and transfers made herein are given for the purpose of securing all of the following,
in such order of priority as Holder may determine in its sole discretion (the "Secured
Obligations'):
1.2.1 The payment of the indebtedness evidenced by the Note in lawful money
of the United States of America to the extent authorized by the Note or the other Loan
Documents.
1.2.2 The performance of all other obligations of Promisor herein.
1.2.3 The performance of each obligation of Promisor in the Loan Documents in
addition to the payment of the Note.
1.2.4 The performance of each obligation in the Loan Documents of any person
guaranteeing the payment of the Note or any portion thereof or performance by Promisor of any
terms of this Mortgage and Security Agreement, if any.
1.2.5 The performance of each obligation of Promisor and any guarantor in any
renewal, extension, modification, consolidation, change, substitution, replacement for,
restatement or increase of all or any part of the Note, this Mortgage and Security Agreement or
the other Loan Documents.
2. Promisor Covenants. Promisor covenants and agrees as follows:
2.1 Payment of Note. Promisor shall pay the Note in accordance with the terms of
the Note, and shall promptly and punctually pay pursuant to the terms of the Note, this Mortgage
and Security Agreement, and all other documents and instruments executed in connection with
the indebtedness evidenced by the Note and secured by this Mortgage and Security Agreement
(hereinafter collectively referred to as the "Loan Documents'). If and when the Property or any
portion thereof is sold, through foreclosure, eminent domain, or otherwise, whether such sale is
MORMAGEANASECUWYAGREEMMT PAGE 2 OF 12
voluntary or involuntary, prior to the receipt by Holder of payment of the Note, Holder shall
have the right, whether or not a deficiency judgment on the Note shall have been sought,
recovered or denied, to receive the award or payment, or a portion thereof sufficient to pay the
Secured Obligations.
2.2 Performance of Other Obligations. Promisor shall perform, comply with, and
abide by each and every one of the covenants, agreements and conditions contained and set forth
in the Note, this Mortgage and Security Agreement, and the other Loan Documents and shall
comply with all laws, ordinances, rules, regulations and orders of any governmental authorities
having jurisdiction over the Property that now or hereafter affect the Property or requires any
alterations or improvements to be made thereon, and shall perform all of its obligations under
any covenant, condition, restriction or agreement of record affecting the Property and shall
insure that at all times the Property constitutes one or more legal lots capable of being conveyed
without violation of any subdivision or platting laws, ordinances, rules or regulations, or other
laws relating to the division or separation of real property.
2.3 Compflance with Laws. Promisor shall observe, abide by, and comply with all
statutes, ordinances, laws, orders, requirements or decrees relating to the Property enacted,
promulgated or issued by any federal, state, county or local governmental authority or any
agency or subdivision thereof having jurisdiction over Promisor or the Property. Promisor shall
observe and comply with all conditions and requirements necessary to preserve and extend any
and all rights, licenses, permits, privileges, franchises and concessions that are or become
applicable to the Property or that have been granted to or contracted for by Promisor in
connection with any existing, presently contemplated or future use of the Property.
2A Preservation and Maintenance of Property. Promisor shall keep all
Improvements now existing or hereafter erected on the Real Property in good order and repair
and shall not do or permit any waste, impairment or deterioration thereof or thereon, nor alter,
remove, or demolish any of the Improvements without the prior written consent of Holder.
Promisor shall not do or permit any act whereby the Property shall become less valuable, be used
for purposes contrary to applicable law, or be used in any manner that will increase the premium
for or result in a termination or cancellation of the insurance policies hereinafter required to be
kept and maintained on the Property.
2.5 Hazardous Waste.
2.5.1 Promisor at all times shall keep the Property and ground water of the
Property free of Hazardous Materials as defined below. Promisor shall not and shall not
knowingly permit its tenants or any third party requiring the consent of Promisor to enter the
Property, to use, generate, manufacture, treat, store, release, threaten release, or dispose of
Hazardous Materials in, on, or about the Property or the ground water of the Property in violation
of any federal, regional, state, or local law, decision, statute, rule, ordinance or regulation
currently in existence or hereinafter enacted or rendered (collectively the "Hazardous Waste
Laws'). Promisor shall give Holder prompt written notice of any claim by any person, entity, or
governmental agency that a significant release or disposal of Hazardous Materials has occurred
in, on, or under the Property in excess of legal limits. Promisor, at its cost, shall promptly and
thoroughly investigate suspected Hazardous Materials contamination of the Property. Promisor
MORwAGEAm SEcuw7AaREEv&ff PAoE 3 of 12
shall forthwith remove, repair, clean up, and/or detoxify any Hazardous Materials found on the
Property or in the ground water of the Property if such actions are required by Hazardous Waste
Laws, and whether or not Promisor was responsible for the existence of the Hazardous Materials
in, on or about the Property or the ground water of the Property. Hazardous Materials shall
include but not be limited to substances defined as "hazardous substances," "hazardous
materials," or "toxic substances" in The Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended, by the Superf Ind Amendments and
Reauthorization Act of 1986, The Hazardous Materials Transportation Act of 1994. The
Resource Conservation and Recovery Act of 1976, as amended by The Used Oils Recycling Act
of 1980, The Solid Waste Disposal Act amendment of 1984, The Toxic Substances Control Act,
The Clean Air Act, The Clean Waxer Act Idaho Environmental Protection and Health Act (Idaho
Code §§ 39-101 to 39-130), Idaho Radiation and Nuclear Material Act (Idaho Code §§ 39-3001
to 39-3030), Idaho Water Quality Act (Idaho Code §§ 39-3601 to 39-3639), Idaho Hazardous
Waste Management Act (Idaho Code §§ 39-4401 to 39-4432), Idaho Hazardous Substance
Emergency Response Act (Idaho Code §§ 39-7101 to 39-7115), Idaho Petroleum Clean Water
Trust Fund Act (Idaho Code §§ 41-4901 to 41-4948), Idaho Land Reclamation Act (Idaho Code
§§ 39-7201 to 39-7210), Idaho Solid Waste Facilities Act (Idaho Code §§ 39-7401 to 39-7420),
Idaho Sale and Disposal of Batteries Act (Idaho Code §§ 39-7001 to 39-7004), Idaho PCB Waste
Disposal Act (Idaho Code §§ 39-6201 to 39-6216) or in any other Hazardous Waste Laws. In
addition, Promisor shall not put any underground storage tanks on the Real Property.
2.5.2 Promisor shall indemnify Holder and hold Holder harmless from and
against any and all losses, liabilities, damages, injuries, costs, expenses and claims of any and
every kind whatsoever paid, incurred or suffered by, or asserted against Holder for, with respect
to, or as a direct or indirect result of, the presence in, on, or under, or the escape, seepage,
leakage, spillage, discharge, emission, or release from, the Property of any Hazardous Materials
(including, without limitation, any losses, liabilities, damages, injuries, costs, expenses or claims
asserted or arising under any Hazardous Waste Laws), regardless of the source of origination and
whether or not caused by, or within the control of, Promisor.
2.6 Accessibility. Promisor at all times shall maintain the Property in full compliance
with all existing and hereafter enacted federal, state, county, regional or local laws, ordinances,
rules and regulations governing accessibility for the disabled, including but not limited to The
Architectural Barriers Act of 1968, The Rehabilitation Act of 1973, The Fair Housing Act of
1988, and The Americans with Disabilities Act (the "Accessibility Laws'J. Promisor shall
indemnify Holder and hold Holder harmless from and against any and all losses, liabilities,
damages, injuries, costs, expenses and claims of any and every kind whatsoever paid, incurred or
suffered by, or asserted against Holder for, with respect to, or as a direct or indirect result of, the
non-compliance of the Property with the Accessibility Laws whether or not caused by, or within
the control of� Promisor.
2.7 Payment of Taxes, Assessments and Other Charges.
2.7.1 Promisor shall pay all taxes, assessments, and other charges -that are or
may be hereafter levied or assessed upon or against the Property, when the same shall become
due and payable according to law, before the same become delinquent, and before any interest or
penalty shall attach thereto. Promisor shall deliver official receipts evidencing the payment of
MaRT'GAGEAM SECURIrYAl3REEAMW PAGE 4 of 12
the same to Holder not later than thirty (30) days following payment. Promisor shall have the
right to contest, in good faith, the proposed assessment of ad valorem taxes or special
assessments by governmental authorities having jurisdiction over the Property, provided,
however, Promisor shall give written notice thereof to Holder and Holder may, in its sole
discretion, require Promisor to post a bond or other collateral satisfactory to Holder in
connection with any such action by Promisor.
2.7.2 Promisor represents and warrants to Holder that Promisor has filed all
federal, state, county, municipal, and city income and other tax returns required to have been
filed by it and have paid all taxes and related liabilities which have become due pursuant to such
returns or pursuant to any assessments received by it. Promisor does not know of any basis for
any additional assessment in respect of any such taxes and related liabilities for prior years.
2.8 Payment of Liens, Charges and Encumbrances. Promisor shall immediately
pay and discharge from time to time when the same shall become due all lawful claims and
demands of mechanics, mate'rialmen, laborers and others that, if unpaid, might result in, or
permit the creation of; a lien, charge or encumbrance upon the Property or any part thereof,
and/or to do or cause to be done everything necessary so that the lien of this Mortgage and
Security Agreement shall be fully preserved, at the cost of Promisor, without expense to Holder.
2.9 Payment of Mortgage Taxes. Promisor shall pay any and all taxes that may be
levied or assessed directly or indirectly upon the Note and/or this Mortgage and Security
Agreement or the debt secured hereby, without regard to any law that may be hereafter enacted
imposing payment of the whole or any part thereof upon Holder, its successors or assigns.
2.10 Insurance.
2.10.1 Promisor shall obtain and maintain, or cause to be maintained, insurance
for Promisor and the Property providing at least the following coverages:
(a) Property Insurance. If and/or when applicable, insurance with
respect to the Improvements and building equipment insuring against any peril in an amount
dual to amounts at all times sufficient to prevent Holder from becoming a co-insurer within the
terms of the applicable policies and under applicable law, but in any event such insurance shall
be maintained in an amount equal to the full insurable value of the Improvements and building
equipment on the Property. The term "full insurable value" means the actual replacement cost of
the Improvements and building equipment (without taking into account any depreciation, and
exclusive of excavations, footings and foundations, landscaping, and paving) determined
annually by an insurer, a recognized independent insurance broker, or an independent appraiser.
The Policy shall provide that: (i) all proceeds be payable to Holder as set forth in this Mortgage
and Security Agreement and shall contain a standard "non-contributory mortgagee" endorsement
or its equivalent relating, inter alis, to recovery by Holder notwithstanding the negligent or
willful acts or omission of Promisor, and (u) a provision that such policy shall not be canceled or
terminated, nor shall it expire, without at least thirty (30) days' prior written notice to Holder.
(b) Liability Insurance. General liability insurance, including bodily
injury, death and property damage liability insurance, against any and all claims, including all
MORTOAOE AND SecvRrrYAoREEmwT PAOB 5 OF 12
legal liability to the extent insurable and imposed upon Holder and all court costs and attorneys'
fees and expenses, arising out of or connected with the possession, use, leasing, operation,
maintenance or condition of the Property in such amounts as are generally available at
commercially reasonable premiums and are generally required by institutional Holders for
prorties comparable to the Property but in no event for a combined single limit of less than
�: . The Policy shall name Holder as an additional named insured and shall contain a
provision that such policy shall not be canceled or terminated, nor shall it expire, without at least
thirty (30) days' prior written notice to Holder.
2.10.2 Promisor shall comply with all insurance requirements and shall not bring
or keep or permit to be brought or kept any article upon any of the Property or cause or permit
any condition to exist thereon that would be prohibited by an insurance requirement, or would
invalidate the insurance coverage required hereunder to be maintained by Promisor on or with
respect to any part of the Property pursuant to this Section.
2.10.3 If the Property shall be damaged or destroyed, in whole or in part, by fire
or other casualty, Promisor shall give prompt notice of such damage to Holder and Promisor
shall promptly commence and diligently prosecute the completion of the repair and restoration of
the property as nearly as possible to the condition the Property was in immediately prior to such
fire or other casualty.
2.10.1 The insurance coverage required hereunder may be effected under a
blanket policy or policies covering the Property and other properties and assets not constituting a
part of the security hereunder, provided that any such blanket policy shall specify, except in the
case of public liability insurance, the portion of the total coverage of such policy that is allocated
to the Property, and any sublimit in such blanket policy applicable to the Property, and shall in
any case comply in all other respects with the requirements of this Section.
2.10.5 Promisor waives any and all right to claim or recover against Holder, its
officers, employees, agents and representatives, by way of subrogation or otherwise, for any loss
sustained by Promisor, or any loss or damage to the Property, Promisor's property or the
property of others. under Promisor's control from any cause insured against or required to be
insured against by the provisions of this Mortgage and Security Agreement.
2.11 Condemnation. Promisor shall promptly give Holder notice of the actual or
threatened commencement of any condemnation or eminent domain proceeding and shall deliver
to Holder copies of any and all papers served in connection with such proceedings. Holder may
participate in any such proceedings to the extent permitted by law. Promisor shall, at its
expense, diligently prosecute any such proceedings, and shall consult with Holder, its attorneys
and experts, and cooperate with them in the carrying on or defense of any such proceedings.
Notwithstanding any taking by any public or quasi -public authority through eminent domain or
otherwise (including, but not limited to any transfer made in lieu of or in anticipation of the
exercise of such taking), Promisor shall pay the Secured Obligations in the maimer provided for
its payment in the Note and in this Mortgage and Security Agreement.
2.12 Examination of Promisor's Records and Premises.
MORwAOEAND SecuArY.2(iREF•MEvT PAGE 6of 12
2.12.1 Promisor shall maintain complete and accurate books and records showing
in detail the income and expenses of the Property, and shall permit Holder and its representatives
to examine such books and records and all supporting vouchers and data during normal business
hours and from time to time upon request by Holder, in such place as such books and records are
customarily kept. Upon the occurrence of an Event of Default, Holder shall have the right to
require that the financial statements be audited and certified by a certified public accountant
acceptable to Holder, at the sole cost and expense of Promisor.
2.12.2 Holder, and/or its agents, shall have the right and shall be permitted, but
shall not be required, at all reasonable times, to enter upon and inspect the Property to insure
compliance with the covenants, agreements, and conditions set forth in this Mortgage and
Security Agreement.
3. Warranty of Title. Promisor represents and warrants to Holder that Promisor has good
title to the Property and has the right to mortgage, grant, bargain, sell, pledge, assign, warrant,
transfer and convey the same and that Promisor possesses a fee simple absolute estate in the Real
Property and that it owns the Property free and clear of all liens, encumbrances and charges
whatsoever except for two prior mortgages and real property taxes for years subsequent to 2008,
which are not yet due and payable (the "Permitted Exceptions'). Promisor shall forever wan -ant,
defend and preserve the title and the validity and priority of the lien of this Mortgage and
Security Agreement and shall forever warrant and defend the same to Holder against the claims
of all persons whomsoever.
4. Further Encumbrance Prohibited. Promisor shall not, without the prior written
consent of Holder, mortgage, grant, bargain, encumber, pledge, assign, or otherwise transfer the
Property or any part thereof or permit the Property or any part thereof to be mortgaged, granted,
bargained, encumbered, pledged, assigned, or otherwise transferred.
5. Default. The occurrence of any one or more of the following events shall constitute an
"Event of Default":
5.1 Failure to make any payment of the entire amount of the Secured Obligations in
accordance with the terms of the Note, this Mortgage and Security Agreement, and all other
Loan Documents.
5.2 If any representation or warranty of Promisor, or any member, general partner,
principal or beneficial owner of any of the foregoing, made herein, or in any other Loan
Document, or in any guaranty, or in any certificate, report, financial statement or other
instrument or document furnished to Holder shall have been false or misleading in any material
respect when made.
5.3 if (i) Promisor or any Guarantor shall commence any case, proceeding or other
action (A) under any existing or future law of any jurisdiction, domestic or foreign, relating to
bankruptcy, insolvency, reorganization, conservatorship or relief of debtors, seeking to have an
order for relief entered with respect to it, or seeking to adjudicate it a bankrupt or insolvent, or
seeking reorganization, arrangement, adjustment, winding -up, liquidation, dissolution,
composition or other relief with respect to it or its debts, or (B) seeking appointment of a
MoRm.4as"D StcuR1ryAoRmmEMT PAGE 7 of 12
receiver, trustee, custodian, conservator or other similar official for it or for all or any substantial
part of its assets, or the Promisor or any Guarantor shall make a general assignment for the
benefit of its creditors; or (ii) there shall be commenced against Promisor or any Guarantor any
case, proceeding or other action of a nature referred to in clause (i) above which (A) results in
the entry of an order for relief or any such adjudication or appointment or (13) remains
undismissed, undischarged or unbonded for a period of sixty (60) days; or (iii) there shall be
commenced against the Promisor or any Guarantor any case, proceeding or other action seeking
issuance of a warrant of attachment, execution, distraint or similar process against all or any
substantial part of its assets which results in the entry of any order for any such relief which shall
not have been vacated, discharged, or stayed or bonded pending appeal within sixty (60) days
from the entry thereof; or (iv) the Promisor or any Guarantor shall take any action in furtherance
of or indicating its consent to, approval of, or acquiescence in, any of the acts set forth in clause
(i), (ii), or (iii) above; or (v) the Promisor or any Guarantor shall generally not, or shall be unable
to, or shall admit in writing its inability to, pay its debts as they become due.
SA Except for the specific defaults set forth in this Section, any other default under
any Loan Document by Promisor, which default is not cured within thirty (30) days after written
notice from Holder to Promisor; provided that if such default cannot reasonably be cured within
such thirty (30) day period and Promisor shall have commenced to cure such default within such
thirty (30) day period and thereafter diligently and expeditiously proceeds to cure the same, such
thirty (30) day period shall be extended for so long as it shall require Promisor in the exercise of
due diligence to cure such default, it being agreed that no such extension shall be for a period in
excess of ninety (90) days, unless, only in the case of cures that require construction or remedial
work, such cure cannot with diligence be completed within such ninety (90) day period, in which
case such period shall be extended for an additional ninety (90) days.
6. Rights and Remedies.
6.1 Remedies. Upon the occurrence of any Event of Default, Holder may take such
action, without notice or demand, as it deems advisable to protect and enforce its rights against
Promisor and in and to the Property, including, but not limited to the following actions, each of
which may, to the extent permitted by applicable law, be pursued concurrently or otherwise, at
such time and in such order as Holder may determine, in its sole discretion, without impairing or
otherwise affecting the other rights and remedies of Holder.
6.1.1 Declare the entire unpaid Secured Obligations to be immediately due and
payable.
6.1.2 Institute proceedings, judicial or otherwise, for the complete foreclosure of
this Mortgage under any applicable provision of law in which case the Property or any interest
therein may be sold for cash or upon credit in one or more parcels or in several interests or
portions and in any order or manner.
6.1.3 Institute an action, suit or proceeding in equity for the specific
performance of any covenant, condition or agreement contained herein, in the Note or in the
other Loan Documents.
MORTGAGE AND SECUJUTYAGMEMENT PAOB 8 OF 12
6JA Apply for the appointment of a receiver, trustee, liquidator or conservator
of the Property, without notice and without regard for the adequacy of the security for the
Secured Obligations and without regard for the solvency of Promisor or of any person, firm or
other entity liable for the payment of the Secured Obligations.
6.1.5 Subject to any applicable law, Holder may enter into or upon the Property,
either personally or by its agents, nominees or attorneys and dispossess Promisor and its agents
and servants therefrom, without liability for trespass, damages or otherwise and exclude
Promisor and its agents or servants wholly therefrom, and Promisor agrees to surrender
possession of the Property to Holder upon demand, and thereupon Holder may (i) use, operate,
manage, control, insure, maintain, repair, restore and otherwise deal with all and every part of the
Property; (ii) apply the receipts from the Property to the payment of the Secured Obligations
after deducting therefrom all expenses (including Reasonable Attorneys' Fees) incurred in
connection with the aforesaid operations and all amounts necessary to pay the Taxes, Other
Charges, insurance and other expenses in connection with the Property, as well as just and
reasonable compensation for the services of Holder, its counsel, agents and employees.
6.1.6 Pursue such other remedies as Holder may have under applicable law.
Notwithstanding the provisions of this Section to the contrary, if any Event of Default
shall occur, the entire unpaid Secured Obligations shall be automatically due and payable,
without any further notice, demand or other action by Holder.
6.2 Right to Core Defaults. Upon the occurrence of any Event of Default, Holder
may, but without any obligation to do so and without notice to or demand on Promisor and
without releasing Promisor from any obligation hereunder, cure the same in such manner and to
such extent as Halder may deem necessary to protect the security hereof Holder is authorized to
enter upon the Property for such purposes, or appear in, defend, or bring any action or
proceeding to protect its interest in the Property or to foreclose this Mortgage and Security
Agreement or collect the Secured Obligations, and the cost and expense thereof (including
Reasonable Attorneys' Fees to the extent permitted by law) shall constitute a portion of the
Secured Obligations and shall be due and payable to Holder upon demand. All such costs and
expenses incurred by Holder in remedying such Event of Default or in appearing in, defending,
or bringing any such action or proceeding shall bear interest at the statutory rate for the period
after notice from Holder that such cost or expense was incurred to the date of payment to Holder.
All such costs and expenses incurred by Holder together with interest thereon calculated at the
statutory rate shall be deemed to constitute a portion of the Secured Obligations and be secured
by this Mortgage and Security Agreement and the other Loan Documents and shall be
immediately due and payable upon demand by Holder therefor.
6.3 Other Rights.
63.1 The failure of Holder to insist upon strict performance of any term hereof
shall not be deemed to be a waiver of any term of this Mortgage and Security Agreement.
Promisor shall not be relieved of Promisor's obligations hereunder by reason of (i) the failure of
Holder to comply with any request of Promisor to take any action to foreclose this Mortgage and
Security Agreement or otherwise enforce any of the provisions hereof or of the Note or the other
MORTGAGE AAV SECURT YAGREEMMT PAGE 9 of 12
Loan Documents, (ii) the release, regardless of consideration, of the whole or any part of the
Property, or of any person liable for the Secured Obligations or any portion thereof, or (iii) any
agreement or stipulation by Holder modifying or supplementing the terms of the Note, this
Mortgage and Security Agreement or the other Loan Documents.
6.3.2 The risk of loss or damage to the Property is on Promisor, and Holder
shall have no liability whatsoever for decline in value of the Property, for failure to maintain the
insurance policies required hereunder, or for failure to determine whether insurance in force is
adequate as to the amount of risks insured
6.3.3 Holder may take action to enforce any covenant hereof without prejudice
to the right of Holder thereafter to foreclose this Mortgage. The rights of Holder under this
Mortgage and Security Agreement shall be separate, distinct and cumulative and none shall be
given effect to the exclusion of the others. No act of Holder shall be construed as an election to
proceed under any one provision herein to the exclusion of any other provision. Holder shall not
be limited exclusively to the rights and remedies herein stated but shall be entitled to every right
and remedy now or hereafter afforded at law or in equity.
7. Indemnification. If Holder shall become a party either as plaintiff or as defendant, in
any action, suit, appeal or legal proceeding (including, without limitation, foreclosure,
condemnation, bankruptcy, administrative proceedings or any proceeding wherein proof of claim
is by law required to be filed), hearing, motion or application before any court or administrative
body in relation to the Property or the lien and security interest granted or created hereby or
herein, or for the recovery or protection of said indebtedness or the Property, or for the
foreclosure of this Mortgage, Promisor shall save and hold Holder harmless from and against any
and all costs and expenses incurred by Holder on account thereof, including, but not limited to,
Reasonable Attorneys' Fees, title searches and abstract and survey charges, at all trial and
appellate levels, and Promisor shall repay, on demand, all such costs and expenses, together with
interest thereon; all of which sums, if unpaid, shall be added to and become a part of the
indebtedness secured hereby.
8. Usury Savings Clause. Notwithstanding any provisions in the Note or in this Mortgage
and Security Agreement to the contrary, the total liability for payments in the nature of interest
including but not limited to default interest shall not exceed the limits imposed by the laws of the
State of Idaho or, if controlling, the United States relating to maximum allowable charges of
interest. Holder shall not be entitled to receive, collect or apply, as interest on the indebtedness
evidenced by the Note, any amount in excess of the maximum lawful rate of interest permitted to
be charged by applicable law. If Holder ever receives, collects or applies as interest any such
excess, such amount that would be excessive interest shall be applied to reduce the unpaid
balance of the indebtedness evidenced by the Note. If the unpaid balance of such indebtedness
has been paid in full, any remaining excess shall be paid to Promisor.
9. Notices. All notices or other written communications hereunder shall be deemed to have
been properly given (a) upon delivery, if delivered in person or by facsimile transmission with
receipt acknowledged by the recipient thereof, (b) one (1) business day after having been
deposited for overnight delivery with any reputable overnight courier service, or (c) three (3)
business days after having been deposited in any post office or mail depository regularly
MORTGAGE AND SECURrrYAGREEMENT PAQE 10 of 12
maintained by the U.S. Postal Service and sent by registered or certified mail, postage prepaid,
return receipt requested, addressed as follows:
If to Promisor: Meridian Police Activities League, Inc.
Attn: Commissioner
250 N. Baltic Place, Suite A
Meridian, ID 83642
If to Holder. City of Meridian
Attn: City Attorney
33 E. Idaho Avenue
Meridian, ID 83642
Either party by notice to the other may designate additional or different addresses for subsequent
notices or communications.
14. Governing Law. This Mortgage and Security Agreement is to be governed by and
construed in accordance with the laws of the state of Idaho and, if controlling, by the laws of the
United States and shall be binding upon Promisor, its heirs, personal representatives, successors
and assigns and shall inure to the benefit of Holder, its successors and assigns. All rights,
powers and remedies provided in this Mortgage and Security Agreement may be exercised only
to the extent that the exercise thereof does not violate any applicable provisions of law and are
intended to be limited to the extent necessary so that they will not render this Mortgage and
Security Agreement invalid, unenforceable or not entitled to be recorded, registered or filed
under the provisions of any Applicable Law.
ll. Terminology. The provisions hereof shall be binding upon Promisor and the heirs,
personal representatives, successors and assigns of Promisor, and shall inure to the benefit of
Holder, its successors and assigns. Where more than one Promisor is named herein, the
obligations and liabilities of said Promisor shall be joint and several. Wherever used in this
Mortgage and Security Agreement, unless the context clearly indicates a contrary intent or unless
otherwise specifically provided herein, the word "Promisor" shall mean Promisor and/or any
subsequent owner or owners of the Property, the word "Holder" shall mean Holder or any
subsequent holder or holders of this Mortgage and Security Agreement, the word "Note" shall
mean the Note secured by this Mortgage and Security Agreement, and the word "person" shall
mean an individual, trustee, trust, corporation, partnership or unincorporated association. As
used herein, the phrase "Reasonable Attorneys' Fees" shall mean fees charged by attorneys
selected by Holder based upon such attorneys' then prevailing hourly rates as opposed to any
statutory presumption specified by any statute then in effect in the State of Idaho.
12. Inapplicable Provisions. If any term of this Mortgage or any application thereof shall
be invalid or unenforceable, the remainder of this Mortgage and any other application of the term
shall not be affected thereby.
13. Modii3eations. This Mortgage and Security Agreement cannot be changed, altered,
amended or modified except by an agreement in writing and in recordable form, executed by
both Promisor and Holder.
MOR MA GE ANDWuRnYAGREFmBw PAOE 11 OF 12
14. Captions. The captions set forth at the beginning of the various sections of this
Mortgage and Security Agreement are for convenience only and shall not be used to interpret or
construe the provisions of this Mortgage and Security Agreement.
15. Entire Agreement. The Note, this Mortgage and Security Agreement and the other
Loan Documents constitute the entire understanding and agreement between Promisor and
Holder with respect to the transactions arising in connection with the Secured Obligations and
supersede all prior written or oral understandings and agreements between Promisor and Holder
with respect thereto.
IN WITNESS WHEREOF, Promisor has executed this Mortgage and Security
Agreement as of the day and year first written above.
PROMISOR
Meridian Police Activities League, Inc.
qp-
MYT Commissioner
STATE OF IDAHO )
ss:
County of ADA )
I HEREBY CERTIFY that on this I day of August, 2008, before the undersigned, a
Notary Public in the State of Idaho, personally appeared TOM ROY, known to me to be the
person who executed the said instrument, and acknowledged to me that he executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal, the
day and yqu%m"Ifftodficate first above w itten. A //
S %
asp ?>k
-�yOTA,Rj, '$►
4'UB00
IN
Agreement as of the
'O
�REOF, Holder has executed this Mortgage and Security
and year first written above.
NptuyPublic for Idaho
* :i 'gat s0 . Idaho
ommission Expires: -V r -o ill
Attest:
of fill,
s
City Clerl $RA _
'16 rIS1
MORMOEAND SECUR17TAGREEMF VT PAGE 12 of 12
ExHIBIT A:
DESCRIPTION OF REAL PROPERTY
MORT wwmD SECURITYAGREEMENT ExHiBff A
Code Code Reissue Amt. s,�g cty
049 11 12
Fie No.: Poli o.: Date of -Policy: Amt. of Insurance:
291486 ZB213309 March 3, 2008 at 730:00 $10,000.00
AM
Old Republic National Title Insurance Company
LITIGATION GUARANTEE
SCHEDULE A
Prop Tuve
1
Premium Amt.
$200.00
1. Name of Assured:
Meridian Police Activities League, Inc.
2. Title to said estate or interest at the date hereof is vested in:
Meridian Police Activities League, Inc.
3. The estate or interest in the land hereinafter described or referred to covered by this Guarantee is:
Fee Simple
4. The land referred to in this Guarantee is situated in the State of Idaho, County of Ada and is described
as follows:
(1) SEE ATTACHED EXHIBIT A
Schedule A page 1 of 2 page(s)
Old Republic National Title Insurance Company
LITIGATION GUARANTEE
SCHEDULE A
EXHIBIT A
(1)
A parcel of land located in the Southeast. quarter of Section 26, Township 2 North, Range I East, Boise
Meridian, Ada County, Idaho, being more particularly described as follows:
The South half of the Northeast quarter of the Southeast quarter of Section 26, the East half of the
Southwest quarter of the Southeast quarter of Section 26, the Southeast quarter of the Southeast quarter of
Section 26.
Beginning at a brass cap marking the Southeast corner of said Section 26, said brass cap described in
CP&F #103166014, Ada County Official Records;
Thence along the South line of the Southeast quarter of Section 26, North 89°18'45" West, 1957.30 feet to
the West line of the East half of the Southwest quarter of the Southeast quarter of Section 26;
Thence along said West line, North 00° 13'40" West, 1325.39 feet to the North line of said East half of the
Southwest quarter of the Southeast quarter of Section 26;
Thence along said North line, South 89031'14" East, 653.83 feet to the West line of the South half of the
Northeast quarter of the Southeast quarter;
Thence along said West line, North 00'0957" West, 663.87 feet to the north line of said South half of the
Northeast quarter of the Southeast quarter;
Thence along said North line, South 89°37'28" East, 1309.08 fit to the East line of the Southeast quarter
of Section 26, said -East line being the centerline of S. Maple Grove Road;
Thence along the said East line and said centerline, South 00°02'34" East, 1998.69 feet to the TRUE
POINT OF BEGINNING.
Schedule A page 2 of 2 page(s)
MORTGAGE NOTE
$3289000.00
Ada County, Idaho
August yj� 2008
FOR VALUE RECEIVED, the undersigned Meridian Police Activities League, Inc., a
nonprofit corporation organized under the laws of the State of Idaho, whose address is 250 N.
Baltic Place, Suite A, Meridian, Idaho 83642 (hereinafter "Promisor"), promises to pay to the
order of the City of Meridian, a municipal corporation organized under the laws of the State of
Idaho, whose address is 33 E. Idaho Avenue, Meridian, Idaho 83642 its successors and assigns
(the "Holder) the sum of Three Hundred and Twenty -Eight Thousand Dollars ($328,000.00), in
lawful money of the United States of America which shall be legal tender in payment of all debts
at the time of such payment. The sum due hereunder shall be payable at the office of Holder at
33 East Idaho Avenue, Meridian, Idaho 83642, or at such other place as Holder may from time to
time designate. Said principal shall be paid in the manner set forth below.
1. Interest. No interest shall accrue on the unpaid balance of this Note.
2. Maturity. The unpaid balance of this Note, if not sooner paid, shall be due and payable in
full upon sale of the Property as defined below by Promisor (the "Maturity Date').
3. Prepayment. Promisor shall have the right to prepay all or any part of the obligation
evidenced by this Note at any time.
4. Additional Conditions. This Note is secured by, and subject to the terms of, a Mortgage
and Security Agreement of even date herewith encumbering certain real property located in
the County of Ada, State of Idaho and other property as more particularly described in the
Mortgage and Security Agreement (hereinafter "Properiy'D. This Note, the Mortgage and
Security Agreement, and all other documents and instruments executed as further evidence
of; as additional security for, or executed in connection with the indebtedness evidenced by
this Note are collectively referred to as the "Loan Documents."
5. Full Recourse. The liability of Promisor with respect to payment hereunder shall be "full
recourse" and, accordingly, Holder's source of satisfaction of said indebtedness and
Promisor's other obligations hereunder and under the other Loan Documents shall not be
limited to the Property. Upon the Maturity Date, Holder may seek to procure payment for
any deficiency out of any other assets of Promisor, or any person or entity comprising
Promisor, or to seek judgment for any sums which are or may be payable under this Note or
under any of the other Loan Documents.
6. Idaho Law. This Note is made in the state of Idaho, which state the parties agree has a
substantial relationship to the parties and to the underlying transaction embodied hereby.
Accordingly, in all respects, this Note and the Loan Documents and the obligations arising
hereunder and thereunder shall be governed by, and construed in accordance with, the laws
of the state of Idaho applicable to contracts made and performed in such state and any
applicable law of the United States of America. Each party unconditionally and irrevocably
MnmrrAn )VnrR P4nR 1 nR 7
waives, t0 the fullest extent permitted by law, any claim to assert that the law of any
jurisdiction other than the state of Idaho governs this Note and the Loan Documents,
7. Captions. The captions set forth at the beginning of the various paragraphs of this Note are
for convenience only and shall not be used to interpret or construe the provisions of this
Note.
& Savings Clause. If any clauses or provisions herein contained operate Or would
prospectively operate to invalidate this Note, then such clauses or provisions only shall be
held for naught, as though not herein contained and the remainder of this Note shall remain
operative and in full force and effect.
IN WITNESS WHEREOF, Promisor has executed this Note as of the day and year
first above written.
PROMISOR
WMeridianolice Activities League, Inc.
m y mmissioner
STATE OF IDAHO )
ss:
County of ADA )
I HEREBY CERTIFY that on this l I day of August, 2008, before the undersigned, a
Notary Public in the State of Idaho, personally appeared TOM ROY, known to me to be the
person who executed the said instrument, and acknowledged to me that he executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal, the
y �5e�q�
r�
day and
'�.� s��Cate first above 'flan.
®G d
* 41 0
N blic r Id o
v BLIG i
at -9,3e . Idaho
`pi. J•. `. .0�0 0�®` mQ11SS10n Expires: y 2O B/l
IN WITNESS WHEREOF, Holder has executed this Note as of the day and year
first above written.
HOLDER:
City of Meridian
By: Te Weerd, Mayor
MlfA7/7AnJ71VfVM
Ilk
Attest:
a o City 91er '
10--'9r tam •'� `.�`