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Agreement of Lease Cherry Lane Recreation 10-03-1978AGREEMENT OF LEASE AGREEMENT Made this 3rd day of October, 1978, by and between the CITY OF MERIDIAN, a municipal corpor- ation of the State of Idaho, party of the first part, hereinafter called "Lessor," and CHERRY LANE RECREATION, INC., an Idaho corporation, party of the second part, here- inafter called "Lessee." 1. LEASE. Lessor hereby leases to Lessee the following described real property situate in Ada County, City of Meridian, State of Idaho, which property is des- cribed and set forth on Exhibit "A" attached hereto and incorporated herein. 2. TERM OF LEASE. The term of this lease shall be twenty-five (25), years, commencing on the 3rd day of October, 1978, and terminating on the 2nd day of October, 2003, both dates inclusive, unless extended or terminated as herein provided. F 3. RENTAL. In lieu of paying any monetary rental until the second nine -hole golf course is constructed and leased to Lessee, Lessee shall, at its own costs, and with- out any obligation, liability or indebtedness of Lessor, and within a reasonable time, operate, conduct and carry on a golf club upon the leased premises for the use and bene- fit of the public generally in accordance with the objects or purposes of its incorporation. Lessee shall pay the sum of Six Thousand Dollars (.$6,000.,0.0), per year, in advance, as rental. This annual payment shall :first become due on the lst day of October next following the date upon which an additional nine hole AGREEMENT OF LEASE - P. 1 golf course shall have been constructed by or on behalf of Lessor and leased by it to Lessee herein on substan- tially the same terms and conditions as contained in this agreement. 4, USE OF LEASED PREMISES, (_al Lessee may use and occupy the leased premises for the purpose of operating, conducting and carrying on a golf course for the use and benefit of the public generally; build, own, operate and conduct a clubhouse restaurant, including the dispensing and sale of foods and beverages; and build, own, operate and conduct amusement enterprises such as tennis court and racquet club for the use and bene- fit of the public generally. (b) Lessee agrees, insofar as it is economically possible, to promote and encourage use of the leased premises for the entertainment, instruction and social opportunities for children, pursuant to scheduling and rules and regula- tions adopted and promulgated by Lessee. Lessee further agrees to cooperate and work with the Recreation Committee of Lessor in developing city recreation programs for the youth of the community.. 5. TAXES AND UTILITIES, Lessee shall pay all taxes and assessments upon the leased premises and upon the buildings and improvements to be constructed thereon, which may be assessed during the initial term or any extended term of this lease, and it shall also pay all charges for gas, electricity, light, heat{ power and telephone or other communication service used, rendered or supplied upon or in connection with -the leased property, agreeing to indemnify Lessor against any liability, claims or damages for failure AGREEMENT. OF LEASE - P. 2 to pay and discharge such taxes, utility charges, and any other expenditure incurred or assumed in the constructions, operation and conduct of a golf club -and related uses, as specified in Paragraph 4 above.. 6. POSSESSION. Lessee shall be given possession of the above described property at the time of executing this Agreement of Lease in order to build, own,, operate and conduct for the uses herein provided, make a master plan of the premises showing the layout of the intended improvements, and make preliminary plans and specifications for the improvements to be constructed, installed and erected upon the above described premises. 7. IMPROVEMENTS. Lessee shall have the right to make such alterations and improvements in and upon the leased premises as shall be reasonably necessary or appro- priate by which to possess and enjoy the leases premises for the uses herein provided. Lessor agrees to execute any and all easements for the purposes of constructing any utility, including, but not limited to, sewers, power, tele- phone, water and gas. All such buildings, improvements and appurtenances in, on or within the leased premises and which have been erected, installed or affixed during the term of this lease shall not be removed by Lessee without the con- sent of Lessor, it being the intent of the parties hereto that such buildings, improvements and appurtenances at the termination of this lease shall become the property of Lessor, free of any and all liens and encumbrances except as assumed by Lessor, 8, MAINTENANCE,, Lessee agrees to keep and main tain the golf course in sufficiently good condition that the AGREEMENT OF LEASE - P. 3 Lessor is not in violation of its agreement with Nu -Pacific Company, Inc,, dated October 3, 1978, A copy of the Nu - Pacific agreement is attached hereto,, and Lessee agrees to perform each obligation of Lessor contained therein. Lessor further assigns to Lessee the right of participation in its right of review and approval of the plans for the additional nine -hole golf course contained in that agreements together with all other rights of the Lessor, 9, DEFAULT, If Lessee shall fail to build, operate, conduct and carry on a golf course in accordance with the use herein granted and in accordance with its purposes and objects of incorporation within one (1) year from the date of this agree- ment, Lessor shall, without notice in writing, have the right to declare this lease forfeited and cancelled. After Lessee has submitted to Lessor for approval, which approval shall not be unreasonably delayed or withheld, plans and specifications for the construction and improvement of the leased premises for the purposes herein provided, Lessee shall diligently pursue such work to completion so that said golf course shall be open for business not later than the 1st day of June, 1979, except as such date may be extended by the number of working days lost by reason of strikes, fire, acts of God or other events beyond the control of Lessee. Further, if Lessee is in default of any terms and conditions of the agreement of lease and fails or refuses after thirty C30) days' written notice to perform or correct the con- ditions in which. said lease is in default,, then this agreement shall be deemed terminated and forfeited and all rights of Lessee in and to the leased property shall thereupon be terminated, subject to the provisions of paragraph 13 of this lease. If, within five (51 years of the date of this agree - AGREEMENT OF LEASE - P. 4 went, an additional nine -hole golf course has not been con- structed onstructed by or on behalf of Lessor, and leased to Lessee upon substantially the same terms and conditions as contained here- in, erein, then Lessee may at its option terminate this lease without further obligation of either party to the other. Such addi- tional nine hole golf course must be in such close proximity to the premises leased herein as to enable Lessee to operate the two as an eighteen -hole golf course. No additional ren- tal shall be payable by reason of the lease of the additional nine -hole golf course. 10. DISCRIMINATION, Lessee, in the use of the lands herein leased, will not, on the grounds of race, color, or national origin, discriminate or permit discrim- ination to any person.or group of persons in any manner. To indulge or permit such discrimination shall constitute a breach and default of this agreement and may be cause for termination as provided herein, 11. INDEMNIFICATION AND INSURANCE. Lessee shall indemnify and save and hold harmless Lessor from and for any and all losses, claims, actions or judgments for damages or injury to persons or property and losses and expenses caused or incurred by Lessee, its servants, agents, employees, guests and other business invitees. However, Lessor cove- nants and agrees to indemnify and save and hold harmless Lessee from and for any and all losses, claims, actions, indebtedness, or judgments if, after making the improvements as provided in Paragraph.7, peaceable possession of Lessee of the leased premises is terminated and caused by a defect in title and ownership of any portion of the leased premises as herein described, it being understood by both parties to this lease that Lessor's title to Tract 2 is contingent upon AGREEMENT OF LEASE - P. 5 Nu -Pacific Company, Inc..'s conveying to the City of Mer- idian per the agreement between those parties dated gtiobe.Y 3 r 19.78. 12, COMPLIANCE WITH LAW. Lessee, at its sole expense, shall comply with all laws, orders and regulations of federal, state and municipal authorities, and, at its sole expense, shall obtain all licenses or permits which may be required for the conduct of its business within the terms of this lease,, or for making of repairs, alterations, improve- ments or additions, and Lessor, where necessary, will join with Lessee in applying for all such permits. 13. SURRENDER AND TERMINATION. Lessee shall, on the expiration, or the sooner termination as herein provided, of this lease, surrender to Lessor the leased property, including all buildings, replacements, additions and improve- ments constructed or placed by Lessee thereon, with all equipment in or appurtenant thereto, free from all liens, encumbrances and subtenancies and in good condition and repair, reasonable wear and tear excepted, Upon termination of this lease, Lessee, its suc- cessors uc- cessors and assigns, shall at all times execute, or cause to be executed, all necessary documents required to surrender leased property, including all buildings, replacements, addi- tions and improvements constructed or placed thereon by Lessee, its successors and assigns, with all equipment in or appurtenant thereto, 14. ASSIGNMENT AND SUBLETTING, Lessee shall not assign, transfer or sublet this .lease, or any portion thereof, or any privilege hereunder, either voluntarily or involun- tarily, without the prior written consent of Lessor, which AGREEMENT OF LEASE - P. 6 consent shall not be withheld unreasonably; except that Lessee may assign its right, title and interest in and to this lease agreement with right of reassignment, to its lender and to a Meridian local development company. 15. RENEWAL. Lessee shall have the option to renew this lease, on the same terms and conditions, for an additional term of thirty (30) years, provided Lessee is in full compliance with all of the terms of this lease at the time notice of intent to renew is given Lessor. Such notice of intent to renew shall be in writing and mailed to Lessor at the City Hall, Meridian, Idaho, on or prior to April 1, 2003. At the conclusion of such renewal term, Lessee shall have the further right to renew this lease, on terms and con- ditions agreeable to each party hereto, for successive addi- tional terms of ten (.10) years each, provided Lessee is in full compliance with all of the terms of this lease at the time notice of intent to renew is given Lessor. Such notice of intent to renew shall be in writing and mailed to Lessor at the City Hall, Meridian, Idaho, on or prior to six (6) months prior to the end of any term. 16. GREENS FEES. Lessee agrees that it will not alter the greens fees charged the public without first con- sulting the authorized representatives of Lessor, it being the intent of both parties to the lease that greens fees for the leased premises shall at all times be competitive with similar public facilities., 17. 'BINDING EFFECT. This Agreement of Lease is binding upon the successors, assigns and subtenants of both parties. AGREEMENT OF LEASE - P. 7 IN WITNESS WHEREOF, the parties have caused this Agreement of Lease to be executed by their duly authorized officers the day and year first above written. CITY OF MERIDIAN ATTEST; By @t��j CI CL RK MAYO "LESSOR" ATTEST: SECRETARY STATE OF IDAHO CHERRY LANE RECREATION, INC. By o 1 11.1s �// .� - f PRESIDENT "LESSEE" ss. COUNTY OF ADA } On this day of , 1978, before me, the undersigne ,a Notary Public in and for said State, personally appeared DON M. STOREY, known to me to be the Mayor of the CITY OF MERIDIAN, whose name is subscribed to the with- in instrument, and acknowledged to me that he executed the same on behalf of the City of Meridian, and was duly authorized so to do. IN WITNESS WHEREOF,, I have hereunto set my hand and affixed my official seal, the day and year in this certificate first above written. No ary Publdfc for State of Idaho, Residing Meridian, Idaho. AGREEMENT OF LEASE - P. 8 STATE OF IDPZHO 1 1 ss. COUNTY OF ADA O On this /—/- � day of, , 1978, before me, the undersi;gnedf a'Notary Public in and for said State, personally appeared WALLACE D, LOVAN, known to me to be the President of CHERRY LANE RECREATION,, INC,, whose name is subscribed to the within instrument, and acknowledged to me that he executed the same on behalf of the Cherry Lane Recreation, Inc., and was duly authorized so to do, IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal, the day and year in this certificate first above written. e No ry Pub c for Stat of Idaho, Residing Tt Ae+i.ce, Idaho, AGREEMENT OF LEASE - P. 9 J -U -B ENGINEERS, IN `n03 Franklin Road • Boise, Idaho 83705 Project: 7543-18 Date: September 8, 1977 DESCRIPTION FOR CHERRY LANE VILLAGE GOLF COURSE NO. 11 A PORTION OF THE N 1/2 SE 1/4, SECTION 3, T.3N., R.1W., B.M., MERIDIAN, ADA COUNTY, IDAHO A parcel of land lying in a portion of the N 1/2 of the SE 1/4 of Section 3, T.3N., R.1W., B.M., Meridian, Ada County, Idaho and more par- ticularly described as follows: Beginning at a point marking the Northeast corner of the said SE 1/4 of Section 3; thence South 61°14'35" West 499.02 feet to a point, also said point being the REAL POINT OF BEGINNING; thence South 31°00'0011 East 100.00 feet to a point; thence South 54°00'00" West 180.00 feet to a point; thence South 66'00'00" West 200.00 feet to a point; thence South 83'30'00" West 433.26 feet to a point; thence South 79'45'00" West 260.25 feet to a point; thence South 57'00'00" East 20.00 feet to a point; thence South 83'15'00" West 400.00 feet to a point; thence South 65'23'33" West 78.68 feet to a point; thence North 19'36'38" West 100.00 feet to a point; thence North 69'00'00" East 15.08 feet to a point of curve; thence Northeasterly along a curve to the left 200.57 feet, said curve having a central angle of 33'18'35", a radius of 345.00 feet, tangents of 103.21 feet and a long chord of 197.76 feet bearing North 52'20'43" East to a point of ending of curve; thence South 54'18'35" East 73.51 feet to a point; thence North 65'00'00" East 78.00 feet to a point; thence South 57'00'00" East 20.00 feet to a point; J 'U—B ENGINEERS, IN 5903 Franklin aoao • Boise, loaho 83705 Project: 7543-18 Date: September 8, 1977 Page: 2 - Cherry Lane Village Golf Course No. 11 thence North 77°00'00" East 325.00 feet to a point; thence North 82°00'00" East 390.00 feet to a point; thence North 76030'00" East 305.00 feet to a point; thence North 65°15'00" East 145.00 feet po the point of beginning, comprising 5.03 acres, more or less. Prepared by: J -U -B ENGINEERS, Inc. Gary L. Rodenspiel, L.S. EWW/JAP:na I J -IJ -B ENGINEERS, IN 5��3 Franklin Road • Boise, Idaho 83705 Project: 7543-18 Date: September 8, 1977 DESCRIPTION FOR CHERRY LANE VILLAGE GOLF COURSES 12 & 13 A PORTION OF THE E 1/2 SE 1/4, SECTION 3, T.3N., R.1W., B.M., MERIDIAN, ADA COUNTY, IDAHO A parcel of land lying in a portion of the E 1/2 of the SE 1/4, Section 3, T.3N., R.1W., B.M., Meridian, Ada County, Idaho and more particularly described as follows: Beginning at a point marking the Northeast corner of the said E 1/2 of the SE 1/4 of Section 3; thence South 36°05'29" West 623.99 feet to a point, also said point being the REAL POINT OF BEGINNING; thence South 38°00'00" West 305.00 feet to a point; thence South 32°00.'00" West 205.00 feet to a point; thence South 29°45'00" West 175.00 feet to a point; thence South 8030'00" West 220.00 feet to a point; thence South 0°00'00" East 400.00 feet to a point; thence South 87°00'00" East 185.00 feet to a point; thence South 1°00'00" West 194.39 feet to a point; thence South 21°15'00" West 109.02 feet to a point of curve; thence Southeasterly along a curve to the left 207.80 feet, said curve having a central angle of 158°45'00", a radius of 75.00 feet, tangents of 399.79 feet and a long chord of 147.43 feet bearing South 79°22'30" East to a point of tangent; thence North 0°00'00" East 40.00 feet to a point; thence North 22°15'00" West 110.00 feet to a point; thence North 6°00'00" East 320.00 feet to a point; thence North 88000'00" West 145.00 feet to a point; thence North 6°30'00" East 150.00 feet to a point; :J—U-B ENGINEERS, IN '903 Franklin Road • Bokia, Idaho 83705 l Project: 7543-18 Date: September 8, 1977 t Page: 2 - Cherry Lane Village Golf Courses 12 & 13 i thence North 19000'00" East 180.00 feet to a point; thence North 3°00'00" East 260.00 feet to a point; thence North 35°30'00" East 250.00 feet to a point; thence North 22°45'00" East 265.00 feet to a point; thence North 65045'00" West 60.00 feet to the point of beginning, comprising 4.96 acres, more or less. Prepared by: J -U -B ENGINEERS, Inc—, 401,Ew, i l RODE�,S2 EWW/JAP:na Gary L. Rodenspiel, L.S. .J-U—B ENGINEERS, IN X03 Franklin Road - eobe, Idaho 03705 Project: 7543-18 Date: September 8, 1977 DESCRIPTION FOR CHERRY LANE VILLAGE GOLF COURSES 14 THRU 17, A PORTION OF THE SE 1/4, SECTION 3, T.3N., R.1W., B.M., MERIDIAN, ADA COUNTY, IDAHO A parcel of land lying in a portion of the SE 1/4 of Section 3, T.3N., R.1W., B.X., Meridian, Ada County, Idaho and more particularly described as follows: Beginning at a point marking the Southeast corner of the said SE 1/4 of Section 3; thence North 43°5932" West 622.10 feet to a point, also said point being the REAL POINT OF BEGINNING; thence South 86°28'00" West 143.88 feet to a point; thence South 83°08'00" West 328.98 feet to a point; thence North 85°22'00" West 165.85 feet to a point; thence North 73°58100" West 145.93 feet to a point; thence North 62°40'00" West 156.09 feet to a point; thence North 52°38'00" West 154.62 feet to a point; thence North 67°52'00" West 168.57 feet to a point; thence North 58°10'00" West 89.42 feet to a point; thence North 28°37'00" West 100.04 feet to a point; thence North 14°00'00" West 125.00 feet to a point; thence North 87°19'00" West 125.00 feet to•a point; thence South 35°00'00" West 78.00 feet to a point; thence South 16'30'00" West 110.00 feet to a point; thence South 35°00'00" West 156.91 feet to a point; thence South 61°43'00" West 315.50 feet to a point; thence South 49°21'00" West 157.00 feet to a point; J—U. —B ENGINEERS, IN —03 Franklin Road • Boise, Idaho 83705 Project: 7543-18 Date: September 8, 1977 Page: 2 - Cherry Lane Village Golf Courses 14 thru 17 thence South 80°18'00" West 80.78 feet to a point; thence North 37°47'00" West 79.68 feet to a point; thence North 0°09'00" East 171.92 feet to a point; thence North 32°50'00" East 231.74 feet to a point; thence North 30°03'39" East 225.00 feet to a point; thence North 44°15'00" East 137.90 feet to a point; thence North 54°45'00" East 283.52 feet to a point; thence North 41°11'55" West 106.78 feet to a point; thence South 66°45'0011 West 166.25 feet to a point; thence North 57°12'00" West 68.36 feet to a point; thence North 29"00'00" West 92.78 feet to a point; thence North 61°00'0011 East 86.26 feet to a point of curve; thence Northeasterly along a curve to the left 93.20 feet, said curve having a central angle of 23°43'56", a radius of 225.00 feet, tangents of 47.28 feet and a long chord of 92.53 feet bearing North 49°08'02" East to a point of ending of, curve; thence South 58°27'00" East 100.63 feet to a point; thence North 81°34'29" East 389.33 feet to a point; thence South 44°47'4811 East 41.29 feet to a point; thence South 20°30'00" East 80.00 feet to a point; thence South 13°53'29" West 148.29 feet to a point; thence South 11°15'00" East 25.46 feet to a point; thence South 43°59'35" East 152.65 feet to a point; thence South 69°30'00" West 20.00 feet to a point; thence South 1°00'00" West 100.00 feet to a point; C. J -U -B ENGINEERS, IN F-3 Franklin Road • Boise, Idaho 83705 Project: 7543-18 Date: September 8, 1977 Page: 2 - Cherry Lane Village Golf Courses 14 thru 17 thence South 19°30100" East 145.00 feet to a point; thence South 61°35'49" East 650.00 feet to a point; thence South 78°30'00" East 250.00 feet to a point; thence South 83°06'42" East 328.97 feet to a point; thence South 4030'00" East 34.77 feet to the point of beginning, com- prising 17.32 acres, more or less. Prepared by: J -U -B ENGINEERS, Inc. Gary L. Rodenspiel, L.S. EWW/JAP:na J-U—B ENGINEERS, If\ Franklin Foa-o • Bolsa-, Idano 83705 Project: 7543-18 Date: September 8, 1977 Revised: April 14, 1978 REVISED DESCRIPTION FOR CHERRY LANE VILLAGE LAKE AND CLUBHOUSE AREAS AND GOLF COURSES 10 AND 18 PORTIONS OF THE S 1/2 N 1/2 AND N 1/2 S 1/2, SECTION 3, T.3N., R.1W., B.M., MERIDIAN, ADA COUNTY, IDAHO A parcel of land lying in portions of the S 1/2 of the N 1/2 and the N 1/2 of the S 1/2 of Section 3, T.3N., R.1W., B.M., Meridian, Ada County, Idaho and more particularly described as follows: Beginning at a point marking the Northwest corner of the said N 1/2 of the S 1/2 of Section 3; thence South 89°25'06" East 2,077.73 feet along the Northerly boundary of the said N 1/2 of the S 1/2 of Section 3 to a point, also said point being the REAL POINT OF BEGINNING; thence South 0°29'44" West 335.18 feet to a point; thence South 51°45'00" East 580.00 feet to a point; thence South 35°00'00" East 285.33 feet to a point; thence South 22°15'00" West 60.05 feet to a point; thence South 43'58'10" East 238.75 feet to a point; thence South 29000'00" East 110.00 feet to a point; thence North 61000'00" East 81.19 feet to a point of curve; thance Northeasterly along a curve to the left 147.14 feet, said curve having a central angle of 48010'28", a radius of 175.00 feet, tangents of 78.23 feet and a long chord of 142.84 feet bearing North 36054146" East to a point of ending of curve; thence North 56030'00" West 151.38 feet to a point; thence North 41030'00" West 203.92 feet to a point; thence North 17015'00" West 94.14 feet to a point; thence North 22015'00" East 147.00 feet to a point; thence North 65050'00" East 45.00 feet to a point; J -U -B ENGINEERS, INC. ^i Franklin Road - Boll-, Idaho 83765 Project: 7543-18 Date: September 8, 1977 Revised: April 14, 1978 Page: 2 - Cherry Lane Village Lake & Clubhouse Areas and Golf Courses 10 & 18 thence South 87°20'00" East 78.40 feet to a point; thence South 68°00'00" East 61.48 feet to a point; thence South 71°33'25" East 88.05 feet to a point; thence South 60°00'00" East 108.33 feet to a point of beginning of curve; thence Northeasterly along a curve to the right 139.32 feet, said curve having a central angle of 25035'19", a radius of 311.95 feet, tan- gents of 70.84 feet and a long chord of 138.16 feet bearing North 56°12'20" East to a point of tangent; thence North 69°00'00" East 115.08 feet to a point of curve; thence Northeasterly along a curve to the left 125.75 feet, said curve having a central angle of 24°25'22", a radius of 295.00 feet, tangents of 63.84 feet and a long chord of 124.80 feet bearing North 56°47'19" East to a point of ending of curve; thence North 44°00'00" West 79.63 feet to a point; thence North 67°45'00" West 160.00 feet to a point; thence South 65°50'00" West 244.67 feet to a point; thence North 50°30'00" West 114.35 feet to 'a point; thence North 44000'00" East 90.00 feet to a point; thence North 17°00'00" West 175.00 feet to a point; thence North 12000100" East 280.00 feet to a•point; thence North 77°30'00" West 170.00 feet to a point; thence South 68°00'00" West 265.00 feet to a point marking the Northeast corner of the SW 1/4 of the said Section 3; thence North 75°30'00" West 190.00 feet to a point; thence North 40°00'00" West 40.00 feet to a point; thence South 75°59131" West 70.00 feet to a point; l' J—U—B ENGINEERS, INC. 103 Franklin Road • Boise, Idaho 83705 Project: 7543-18 Date: September 8, 1977 Revised: April 14, 1978 Page: 3 - Cherry Lane Village Lake & Clubhouse Areas and Golf Courses 10 & 18 thence South 25000'00" West 64.19 feet to a point on the said Northerly boundary of the N 1/2 of the S 1/2 of Section 3; thence North 89°25'06" West 254.51 feet along the said Northerly boundary of the N 1/2 of the S 1/2 of Section 3 to the point of begin- ning, comprising 17.75 acres, more or less. Prepared by: J -U -B ENGINEERS, Inc. \S�EREDZL of �4 \r t. &ooE`'Se Gary L. Rodenspiel, L.S. EWW/JAP:na OCT 4 1978 AGREEMENT ,4 7 AGREEMENT MADE THIS _ clay of 1978, between the,.CITY OF MERIDIAN, IDAHO, a municipal corpora- tion, herein referred to as City and NuY'ACTFIC COMPANY, an Or'E!cron corporation, having its principal place of business at Portland, Oregon, herein referred to as Grantor. RECITALS Grantor .is tate owner and option holder of certain real property in the City of Mor.idian, Ada County, Idaho, the legal. description of which its attached hereto as Exhibit A. Said real property is currently being devoloped, and plans for further development are contemp.latoul, the entirety of which shall be'known as Cherry Lane Village. As .a part of and within Cherry Lano ViIlage the Grantor has,substantially completed the construction of a nine -dole aolf course, and .a second 'nine -hole extension on said croif course is planned for later development. ;,!City, -and Grantor have, executed a MI2.10RANDUM OF UNDER- STANDING, a copy of which is attached hereto as Exhibit E, under which the coordination and design of the initial nine holes of the gn.if course, along with an understanding as to the transfer of the ownership and maintenance of such as a municipal golf course, i:.s:set forth. IJnild`e' l:ltc l:c)t'hto-) O(- Lho h11W01N\NI)UM Oh (W)htRSTTNDING this Grantor has submitted.the plans for the first nine holes of the golf course :to the City, and in t,ir.n the City has approved such plans for' construction and eventual transfer. The City and Grantor now wi;;11 to ontor into this Agreement for the transf.rr of all of the pr sir:.suture golf course property, an,! •i- u11 .; :.et forth the .r q'rits and obligat.i.ons under such transfer of ownership. µ,- ror the reasons set forth above,.,anei in consideration of the'promises of the P parties hereto, and other good and valuable, consideration, the receipt of which is acknowledged, the parties agree as follows: First Nine iioles--Transfer. Immediately following the second"cutting of the initial. nine holes of the golf course, and following written acknowledge- ment to both parties hereto by, JUB Engineers, Inc. that the plans and specfications,have been substantially complied with, Grantor shall transfer by 'quit claim deed and City shall accept title to the initial nine-holes of the golf course property, .the legal description of which is attached hereto as Exhibit C and,made a part hereof by this reference, for the City's ownership and maintenance as_a public municipal golf course. ;In the. event JUB Engineers specifies that 'a defect exists in: the construction which does not substantially ;impair the use of the property as a golf course the transfer of,title shall occur and Grantor shall immediately, correct ,such defect at' no cost to the City. JUB Engineers shall be,the,final and bind- ing arbitrator with regard to any dispute or determination made under this clause. Second Nine Boles--Transfer. As provided in the section below entitled "Contingency", Grantor currently intends to design and construct nine additional holo:; Wl:icl; Ul:al'.t ln: C011 t. i cl u(AW w i.l. i; Ll:u {+ri_•:;i+;i t tjol C cour_;u property as described in Exhibit C. Such additional hole's will specifically be designed and constructed in such a manner that such property, together with the initial nine-hole golf course, shall become one eighteen-hole golf course. Such additional, nine holes shall be designed and`con­ structed-at no cost to the City, and upon completion of the second cutting, as set forth below, the Grantor' shall transfer by riu i t (7 1.1 i In dood, and LIC, C.i t-.y s,hzl..l accept `ti.tl.e, 'said additional r -2- golf course property to be owned and maintained by the City;. and further, together with the initial nine holes, shall be owned and maintained as an eightcetl=holo public municipal golf course. Second Nine doles --Planning. Grantor shall submit drawings and plans to the City for the construction of the additional nine holes. Within thirty (30) days of its receipt of these drawings and plans, City shall review them and approve the drawings and plans in whole or in part. In the event of partial approval, and within such thirty (30) day period, the City shall submit to Grantor written proposals for changes in the drawings and plans. Within thirty (30) days of the submission of these proposals for changes, the Grantor shall review them and approve the proposals of the City in whole or in part. In the event of Grantor's partial approval of the proposals for changes, the matters which the parties are unable to agree upon shall be submitted to JUB Engineers who shall review the unresolved matters and make a final decision. Within a reasonable time thereafter Grantor shall enter • into a contract, in the manner required by law and at no cost or liability to the City, for the construction and development of the remainder of the golf course in accordance with the drawings and plans. 50.0110 Nine Tial aP,--Tn i tin 1. M, n<Jomc�ni . From the period of initial construction of the addition- al golf course property until the completion of the second cutting of said property, Grantor shall maintain.and manage the additional golf course property. Upon Completion of the second cutting of the additional golf course property and before the property is deeded to the City, JUB Engineers shall make a final inspection -3- to insure that the golf course meets the construction specifi- cations. All corrections which are deemed to be'necessary to bring the golf course .into -conformance with the construction specifications shall be made and paid for by Grantor prior to the transfer of the golf course to the City. In the event JUB Engineers specifies that a defect exists in the construction which does not substantially impair the use of the property as a part of the golf course the transfer of title shall occur and Grantor shall immediately correct such defect at no cost to the City. JUB Engineers shall be the final and binding arbitrator with regard to any dispute or determi- nation they make under this Agreement. Contingency. Nothing in this Agreement shall be construed in any manner as to compel the Grantor to design and/or construct such additional nine holes for the golf course. Provided, however, that if Grantor exercises its final option for the purchase and development of the property encompassing Cherry Lane Village, as described in Exhibit A, it shall be under an absolute obligation to construct and transfer said second nine holes. Furthermore, 8 if such second nine holes are designed and constructed by Grantor at anytime in the future, and provided that City is not in default, under the terms of this Agreement, this Agreement shall - so bind Grantor to transfer to the City, and the City to accept, such property. Management and Maintenance Obligation. Following the transfer to the City of any or all of the , property under this Agreement the City shall, be wholly and com- pletely responsible for the management and maintenance of the golf course property, including any buildings constructed thereon, at no expense to the Grantor. As such the City may contract with any third party or parties for such management and/or mainte- nance, but shall remain solely responsible to the Grantor for such and the Grantor may`.1`ook': exclusively to the City for any breach or default. Furthermore, the City agrees; at no cost to the Grantor, that such management and maintenance of the property shall be at a standard of quality consistent with similar public municipal golf courses throughout ,the country. In that regard the City will cooperate with some individual, golf agency or association, to be agreed upon by the parties, for, the inspection and review. of the management and maintenance of the.golf course, and to make certain recommendations to insure that such aforementioned standard of quality is met. Such inspection and review shall take place from time to time as deemed necessary by those con- ducting the review, but shall.pot Occur less than annually. In the event the parties cannot reach an agreement on the identi- fication of the alternative individual, agency or association, BOB BALDOCK AND SONS, the architect primarily responsible for the design of ,the golf course, shall make such designation and it shall be binding upon the parties unless otherwise mutually agreed. The City acknowledges that failure to maintain the golf course.prupexty at the above set forth standard of quality may ' have a direct and detrimental effect upon the value of the Grantor's siirroundinq pr.cT)crty. As a consorfuencc Grantor retains the right to have the golf course maintained at the standard of quality so determined. Any recommendation'hy such designated individual, agency or association with respect to management and/or maintenance shall. be donsidered necessary to maintain the standard of quality intended by this Agreement unless the parties mutually agree otherwise, and any failure on the part of the City to so maintain the ptoporty, following notice of such by the Grantor, may be deemed a.,breachof contract by the Grantor. After providing notice to the City that.such maintenance is below the designated quality, the Grantor may, as set forth below under the section entitled "Default", enter upon the property to under- take any such maintenance activity; or, may declare the City in breach of contract, in which case the title to the property shall be revested in the Grantor.. Insurance. During the period the City is responsible for the main- tenance and operation of the golf course under the terms of this Agreement, the City shall obtain and maintain at their sole expense, a policy of liability insurance for the joint and separate protection of the City and Grantor in the minimum amount of $500,000 for bodily injury or, death of any one person and $1,000,000 for bodily injury or death of two or more persons in any one accident, or event, and in the minimum amount of $200,000 for damage to property resulting from any one accident.'` The, City shall also carry fire insurance on all structures in the amount that it would cost to replace such structures. Certified copies of the above-described insurance policles and all certificates thereof shall be furnished to -the - Grantor. Term. Except as provided in the section entitled "Assignment and Repurchase --Terms" herein, the term of this Agreement shall be for as long as the Grantor or any transferee of Grantor, owns any property in the residential development known as Cherry Lane Village in Meridian, Ada County, Idaho or any property an'exed or contiguous to Cherry Lane Village, and may be terminated any time earlier by mutual written consent of the parties- For purposes 1 Of this,se.ction, no road running within the properties shall act to render any of the properties noncontiguous. Waiver of Breach,.', The waiver by a party of any breach of any term con- tained.in this Agreement shall not be deemed to be a waiver of such term for any subsequent or continuing breach of the same br any other term. Default and Breach of Contract. Should the City fail in any respect to comply with the terms of this Agreement with respect to the management and main- tenance of the golf course property as set -forth above; and ' further, should the Grantor notify the City in writing specifying the default asserted; and, should the City fail to take proper action to cure such default within thirty (30) days thereafter, the Grantor shall, at its sole discretion, retain the right to enter onto the golf course property to undertake proper mainte- nance, and/or may declare the City in breach of its contract and demand immediate return of the title to all such property theretofore conveyed to the City under the terms of this Agreement, if the Grantor declares such breach of contract the City shall immedi- ately convey the property, free and clear of all encumbrances, to the Grantor', and any obligation on the part of Grantor to trans- fer any further properties under this Agreement not theretofore transferred shall be extinguished. Mnrlifi��hinrl�, This Agreement may only be amended or modified by mutual written consent of both parties. Buildings. Nothing in this Agreement shall be construed or.act to limit the City's right to construct, own, and/or operate, or allow such construction, ownership and/or operation of any build- ing on the -subject property --in the area allocated for such on -7- the recorded plat --for any purpose consistent with the ownership, operation and maintenance of the golf course. This right shall include, but not be limif6to 'the construction, and operation of maintenance buildings, clubhouse facilities, restaurant, pro shop, driving range, or other recreational facility. Assignment and Repurchase --Terms. Except as provided above in the section entitled "Management and Maintenance", unless agreed to in writing by- Grantor--or yGrantor--or. any transferee of Grantor --the City may not assign, gift, sell, hypothecate or in any manner transfer title of any of the property subject to this Agreement; and, furthermore, may not use, operate or maintain such property for primarily any use other than a public municipal golf course during the term of this. Agreement. Following such period of time and for. fifteen years thereafter the Grantor shall have a right of first refusal to purchase any or all of such property from the City if the City chooses to sell or transfer such property in any manner. The purchase price shall be determined by any verified bona fide offer to purchase.by an independent third party or at the then current market price based upon the Grantor's MAI appraisal. Grantor- shall notify the City of its intent to exercise such right of first refusal within sixty (60) days of notice and verification of such offer or receipt by Grantor of such appraisal,. Grantor may assign any or all of.its rights and obli- gations under this Agreement, and notice of such shall be sent to the City. This Agreement shaft be binding upon all adminis- trators,. successors, heirs, assigns and transferees of any kind of the parties. -B- Notices. Any notice required under this Agreement given by one party to the other shall be :it writing and shall be deemed given when delivered personally with a copy by certified mail or when mailed by certified mail to the following addresses, or other addresses the parties so designate in the manner set forthin' this section: To Grantor: NuPacific Company, Inc. P. O. Box 1847 Bellevue, WA 98009 To City: Clerk of•the City Council City of Meridian Meridian, ID 83642 Attorney's Pees. In any action, suit or proceeding to enforce this Agreement or by reason of breach thereof, the prevailing party shall be dntitled to recover reasonable attorney's fees to be fixed by the court, including fees on appeal. Legal Description. If legal description or any exhibits to this Agreement are erroneous, incomplete, or not attached at the time of execu- tion of this Agreement, it is understood and agreed that it is the intent of the Grantor to transfer property as afore described within the plat of Cherry Lane Village in Meridian, Idaho encompass- ing up to an eighteen hole golf course and appurtenant property. Such legal descriptions or exhibits may be attached at any time during the life of this Agreement. Witolc Agreement.. a . Except as otherwise stated, all'of the terms and con- ditions of this Agreement between the parties hereto are' -stated herein and no representationsorinducements have been made by either party other than those herein set forth. IN WITNESS WHEREOF, the Grantor -has caused this docu- ment to be executed in its name by its proper and fully authorized officers, and the City of Meridian has caused the same to'be duly executed by its authorized representatives, the date and year first above.written. GRANTOR: NgPACIFIC COMPA�Y., INC. By'C'®1 ���,� C'• rrp STATE OF _ ) L)�G� ,�lZ,yy�ir s. County of AM r1 ) ((ll�� On this day of 'S 1�s11_� 1978 before me personal �y ap ear d �`o�/ (�pU C� ��C2,7- , to me known, to be the���� of NuPA YFIC COMPANY that executed the within and foregoing instrument, and acknowledged the said instru- ment to be the free and voluntary act and deed of said corporation for the :uses-a.nd purposes therein mentioned, and on oath stated. that he/she was authorized to execute said instrument. IN WITNESS WIEREOF, I have hereunto set my hand and official seal the day and y ; r/ irst a ve rij.teAi. ot r �F i and for the State .Residing at..�'r, CITY OF MERIDIAN, IDAHO, a nic'pal C,ornp-orat'on Y� A a EXHIBIT- B MEMORANDUM OF UNDERSTANDING This Memorandum of Understanding by and between NuPacific Company, Inc. (hereinafter referred to as "Developer") and the City of Meridian, Idaho (hereinafter referred/to as "City':) _is intended to set forth the understanding between the parties relative to the. design construction, ownership and maintenance of a golf course to be constructed on Developer's property in Meridian, Idaho known as Cherry Lane Village. The Developer intends to design and construct a nine hole golf course as a part of its Cherry Lane Village Development in Meridian, Idaho. The entire cost of such design and construction, through the second cutting of such golf course will be born by the Developer. Upon completion of the second cut of the golf course the Developer will deed the golf course property over to the City for its ownership and maintenance as a public municipal golf course.. The City intends to maintain the course at its own expense and at a standard of quality consistent with similar courses throughou the country. In that regard the City will cooperate with a certain golf agency or association, to be designated at a later date, to insure that the course is inspected and maintained at such afore- mentioned standard of quality. The configuration and design of the golf course has been " dictated by the.placement of the lots within the development and approved by the City. The Developer intends to submit to the City the drawings and plans for ' -physical ' g p p ysical construction of the. golf course-°' within the near future. The City respects the Developer's "con- struction schedule and therefore agrees to review and approve the plans and designs within ten days following their receipt. In the event the City wishes to suggest construction c:h�nrlarr it' i,he T)I f course. f;u<;lr chr,n,�r wi 1.1 be submitted prior to the end of the ten days review period. The developer may then r either incorporate such changes into the plans or object. If objection is made by the Developer to suggested changes by the City, the matter will then be submitted to JUB Engineers for their determination. JUB shall be the final arbitrator for any such change suggestions which are objected to by the Developer. Upon completion of the second cutting of the golf course, and before the property is deeded to the City, JUB Engineers shall make a final inspection to insure that the course meets the con- struction specifications. JUB shall be the final inspector prior to such deeding over by the Developer, and the City will not be respon- sible for maintenance until any defects are corrected by the Dev- eloper to JUB Engineer's satisfaction, or to the specifications of the design. Following the City's assumption of the golf course owner- ship the Developer will retain the right to have the course main- tained its proper standard of quality and will be allowed to enter on to the property to undertake such maintenance at the City's expense in the event the City fails to do so, following reasonable notice of Developer's intent to undertake.guch action. w It is both Parties intent that this memorandum of under- standing act as the agreement between the parties until such time as a formal contract document is executed.by, them. NuPacific Company, Inc. By: Date: City of -Meridian By: Date - -2•- J -U -B ENGINEERS, INC. 03 Franklin Road . noise. Idaho 83705 Project: 7543-06-1 Date: September 3, 1975 Revised: October 7, 1977 Revised: October 14, 1977 Revised: March 1, 1978 EXHIBIT A REVISION III DESCRIPTION FOR CHERRY LANE PLANNED COrt*NNITY. OF KENT G. &MARY R. BARNEY AND JAMES W. & LOIS J. FULLER PROPERTY EXCLUDING FULLER'S AND BARNEY'S HOUSE PROPERTIES A PORTION OF SECTION 3, T.3N., R.1W., B.M., ADA COUNTY, IDAHO; A parcel of land lying in Section 3, T.3N., R.1W., B.M., Ada County, Idaho, and more"particularly described as follows: Beginning at an iron pin marking the Southeast corner of the SE 1/4 of the said Section 3, also said point marking the intersection of Cherry Lane and Ten Mile Road; t�<nc:e North 89°16'13" West 210.00 feet along the Southerly boundary of the.sai.d SE 1/44 of Section 3, which is also the centerline of Cherry Lane, to an iron pin, also said point being the REAL POINT OF BEGINNING; thence continuing North 89016113" West 2,439.62 feet along the Southerly boundary of the said SE 1/4 of Section 3, which is also the centerline of `Cherry Lane, to an iron pin marking the Southwest corner of the said SE 1/4 of Section 3; thence North 89°14151" West 330.63 feet along the Southerly boundary of the SW 1/4 of the said Section 3, which is also the centerline of Cherry Lane, to an iron pin marking the Southwest corner of the E 1/2 of the E 1/2 of the SE 1/4 of the said SW 1/4 of Section 3; thence North 0°28'53" East 1,329.03 feet along the Westerly boundary of the said E 1/2 of the E 1/2 of the SE 1/4 of the SW 1/4 of Section 3 to a point marking the Northwest corner of the said E 1/2 of the E 1/2 of the SE 1/4 of the SW 1/4 of Section 3; thence North 89°19'58" West 330.12 feet along the Southerly boundary of the E 1/2 of the NE 1/4 of the said SW 1/4 of Section 3 to an iron pin marking the Southwest corner of the said E 1/2 of the NE 1/4 of the SW 1/4 of Section 3; thence North 0°30'11" East 1,334.22 feet along the Westerly boundary of the said E 1/2 of the NE 1/4 of the SW 1/4 of Section 3 to an iron pin; thence North 88°55'29" West 1,977.76 feet to an iron pin on the Westerly boundary of the NW 1/4 of the said Section 3; . 1 - 2 I 3 MI:M-1(ANU)M 01., 1•I:A:;P: 4 This Mt wt,i .�Il,l,il❑ <,I o tuber 5_._ 1978, is entered G i)rt.o between the part i,:: lur the purpose of givi.ny public notice'':;.';, that a lease has l,cen t.x,•uuted I,t.Lwi:en the parties in accordance;'• 7 with the general provis.iuns below. 8 9 1. .Parties. t'hc City of Meridian, a ❑iunicipal corporation, as Lessor and Cherry Lanef(ecrt:rit-ioil, 1nC. , an 10 Idaho corporation, as Lessee. I1 • 12 2. Term. 7'wenly-five (25) yearn with an option tot,-(,; renew for thirtyto be negotiated 74) 13 (30) years and sucr.essive uptiuns/of ten (10). 14 years beginning October 3, 1978. ' ,15 3• Property'Affected. Part of SecLion 3, Township 16 3 North, Range 1 West Boise Meridian in Ada CounLy, Idaho, as is more particularly described on a deed from Nu Pacific: Company, 17 an Oregon corporation, to the City of Meridian, Idaho, a 18 19 municipal corporation, ret;orded in the records of Ada CounLy, 20 Idaho as Instrument No. 21 4. Consideration.. For good and valuable consideration. 22 CIT MPRIDIAN . 23 b A LsT 3' : 2. 24_x_ -- May r 25 City Clerk 2 `„ CHERRY LANE RECREATION, INC. President .,MEMORANDUM OF LEASE F AItT RED S,. Ick " Stu%qj�,�l• � ,,'����'' ,.) ,1� � _-_�S"_IYVN�i.wI•W:'. :4w .iY1.. t , . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 • .�4 25 27 f r� I N� A T: 32 32 STATE: OF IDAHO ) ss. County of Ada ) On this q2j- day of October, 1978, before me, the undersigned, a Notary Public in and for said State, personally appeared ---r.>,p p N- S•y'o r s known to me to be the Mayor of,-the7City of Meridian, Idaho, and known to me to be the persons whose name is subscribed to the within instrument, and acknowledged to me that lie executed the same on behalf of'the City of Meridian. IN WITNEPS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year in this certificate first above writtep. N ary Pt lic in and for Idaho Residing at -Boise-, Idaho STAVE OF IDA11O ) . ss. • County of Ada ). On this day of October, 1978, before me, the undersigned, a Notay Public in and for said State, personally appeared A"*Z*mknown to me to be the President of Cherry Lane Recreation, Inc., whose name is subscribed to the within instrument, and acknowledged to me that tie executed the same on behalf of Cherry Lane Recreation, Inc. IN. WITNESS WHEREOF, I have hereunto set, my hand and affixed my official seal the day and year in this certificate first,gkove written. dae No ar Pu is in all r" Idaho y ,� '•z `rwSk;�Fd;`I Residingr" Idaho 1.• .�4i J �• `' .` r4F.`,r� i5 ,• ;�1''•, �.'i, r .!fit r;{:.: e MEMORANDUM OF LEASE lir•1. •1�.. I J -u -B ENGINEERS, INC. 03 Franklin Road • Boissi, Idaho 83705 Project: 7543-06-1 Date: September 3, 1975 Revised: October 7, 1977 Revised: October 14, 1977 Revised: March 1, 1978 Page: 2 - Excluding Fuller's and Barney's House Properties thence North 0°38'27" East 2,021.05 feet along the Westerly boundary of the said NW 1/4 of Section 3, which is also the centerline of Black Cat Road, to an iron pin; thence South 89°23'04" East 1,042.02 feet to a point on the centerline of Eight Mile Lateral; thence South 56°28'32" East 248.22 feet along the centerline of Eight Mile Lateral to a point of curve; thence Southeasterly along the said centerline of Eight Mile Lateral along a curve to the right 132.85 feet, said curve having a central angle of 13°07:'25", a radius of 580.00 feet, tangents of 66.72 feet and a long chord`of 132.56 feet bearing South 49°54'49" East to a point of tangent; CAence South 43°21'07" East 398.04 feet along the said centerline of Eight,11ile Lateral to a point; thence South 37°32'35" East 273.07 feet along the said centerline of Eight Mile Lateral to a point on the Northerly boundary of the SE 1/4 of the said NW`l/4 of Section 3; thence South 89°18'58" East 834.67 feet along the said Northerly boundary of the SE 1/4 of the NW 1/4 of Section 3 to an iron pin marking the Northeast corner of the said SE 1/4 of the NW 1/4 of Section 3; thence South 89°02'00" East 1,321.04 feet along the Northerly boundary of the SW 1/4 of the NE 1/4 of the said Section 3 to an iron pin marking the Northeast corner of the said SW 1/4 of the NE 1/4 of Section 3; thence South 0°26'04" West 1,053.70 feet along the Easterly boundary of the said.SW 1/4 of the NE 1/4 of Section 3 to an iron pin; thence North 89°3356" West 94.59 feet to a point; thence South 0°26'04" West 202.46 feet along a line Westerly of and para- llel to the said Easterly boundary of the SW 1/4 of the NE 1/4 of Section 3 to a point; thence South 89°3356" East 74.59 feet to a point; thence South 0°26'04" West 87.02 feet along a line Westerly of and parallel to the said Easterly boundary of the SW 1/4 of the NE 1/4 of Section 3 to a point; J -U -B ENGINEERS, INC. 03 Franklin Road • Boise. Idaho 83705 Project: 7543-06-1 Date: September 3, 1975 Revised: October 7, 1977 Revised: October 14, 1977 Revised: March 1, 1978 Page: 3 - Excluding Fuller's and Barney's House Properties thence South 88°55129" East 90.42 feet along a line Southerly of and - parallel to the Northerly boundary of the said SE 1/4 of Section 3 to a point; thence South 5°22'49" East 187.88 feet to a point; thence South 88°16'49" East 181.64 feet to,a point; r thence North 0019'11" East 208.75 feet along a line Westerly of and parallel to*the Easterly boundary of the. said SE 1/4 of Section 3 to a point on the said Northerly boundary of the SE 1/4 of Section 3; thence South 88055'29" East 1,051.00 feet along the said Northerly bound ary,of the SE 1/4 of Section 3 to an iron pin marking the Northeast corner of the said SE 1/4 of Section 3; t"r,,once South 0°19111" West 1,075.14 feet along the said Easterly boundary of the SE 1A of Section 3, which is also the centerline of Ten Mile Road, to an .iron .pin; thence North 89°40'49" West 487.61 feet to a point on the centerline of FR&'tledge Lateral; thence South 71°15'16" East 63.15 feet along the said centerline of Rut- ledge Lateral to a point; thence South 70°35151" East 357.24 feet along the said centerline of Rutledge Lateral to a point of curve; thence Southeasterly along the said centerline of Rutledge Lateral along a curve to the left 18.41 feet, said curve having a central angle of 8°18'20", a radius of 127.00 feet, tangents of 9.22 feet, and a long chord of 18.39 feet bearing South 74°45'01" East to a point of tangent; thence South 78°54111" East 73.61 feet to a point on the Easterly boundary of the said SE 1/4 of Section 3; thence leaving the said centerline of Rutledge Lateral South 0°19'11" West 117.32 feet along the said Easterly boundary of the SE 1/4 of Section 3 to an iron pin; thence South 89°58'55" West 255.90 feet to an iron pin; thence South 0°19`11" West 170.11 feet along a line Westerly of and parallel to the said Easterly boundary of the SE 1/4 of Section 3 to an iron pin; J -U -B ;ENGINEERS, INC. 103 F,.nknn Road • 8olse, Idaho 83705 Project: 7543-06-1 Date: September 3, 1975 Revised: October 7, 1977 Revised: October 14, 1977 Revised: March 1, 1978 Page: 4 - Excluding Fuller's and Barney's House Properties thence North 89058'55" East 255.90 feet to an iron pin on the said Easterly boundary of the SE 1/4 of Section 3; thence South 0°19'11" West 805.32 feet along the said Easterly boundary of the SE 1/4 of Section 3 to an iron pin; thence North 89°16'13" West 210.00 feet along a line Northerly of and parallel to the said Southerly boundary of the SE 1/4 of Section 3 to an iron pin; thence South 0019111" West 320.00 feet along a line Westerly of and parallel to the said Easterly boundary of. the SE 1/4 of Section 3 to the point of beginning, comprising 330.16 acres, more or less. Prepared by: J-U-B'ENGINEERS, Inc. Gary L. Rodenspiel, L.S. DMP/JAP:na 11 %.J -'t,1 V C1 V1JI1'aL-l-9-1dr n vv. X1-1 r r.a.v -.. —# Project: 7543-18 Date: Set?tenibcr 8, 1977 Revised: April 14, 1973 EXHIBIT C _.. REVISED DESCRIPTION FOR CHEERY LANE VILLACE LAKE AND CLUBHOUSE AREAS AND GOLF COURSES 10 AND 13 PORTIONS OF Tt1E S 1/2 N 1/2 AND N 1/2 S 1/2, SECTION 3, T.3N., R. IW., B.M., MERIDIAN, ADA COUNTY, IDAHO thence South 29°00'00" East 110.00 feet to a point; thence North 61`00'00" East 81.19 feet to a point of curve; thence Northeasterly along a curve to the left 147.14 feet, said curve having a central angle of 48°10'28", a radius of 175.00 feet, tangents of 78.23 feet and a long chord of 142.84 feet bearing North 36°54146" East to a point of ending of curve; thence North 56°30'00" West 151.38 feet to a point; thence North 41°30'00" West 203.92 feet to a point; thence North 17 15'00" West 94.14 feet to a point; thence North 22°15'00" East 147.00 feet to a point; thence Ncrth 65°50'00" East 45.00 feet to a point; A parcel of land lying in portions of the S 1/2 of the N 1/2 and the N 1/2 of the S 1/2 of Section 3, T.3N., R.1W., B.M., Meridian, Ada County, Idaho and more particularly described as follows: Beginning at a point marking the Northwest"corner of the said N 1/2 of the S 1/2 of Section . 3; 4 thence.South 89°25'06" East 2,077.73 feet along the Northerly boundary of the said N 1/2 of the S 1/2 of Section 3 to a point, also said point 'being the REAL POINT OF BEGINNING; 0 tiiVhce South 0°29'44" West 335.18 feet to feet•to a point; Thence South 51°45'00" East 580:0'0 a point; . hence outh 35 00'00" East A5.33 feet to.a point; D rth�etice South 2215' 00" West 60.05 feet to a point; thence South 4 3 58'10" East 238.75 feet to a point; ' thence South 29°00'00" East 110.00 feet to a point; thence North 61`00'00" East 81.19 feet to a point of curve; thence Northeasterly along a curve to the left 147.14 feet, said curve having a central angle of 48°10'28", a radius of 175.00 feet, tangents of 78.23 feet and a long chord of 142.84 feet bearing North 36°54146" East to a point of ending of curve; thence North 56°30'00" West 151.38 feet to a point; thence North 41°30'00" West 203.92 feet to a point; thence North 17 15'00" West 94.14 feet to a point; thence North 22°15'00" East 147.00 feet to a point; thence Ncrth 65°50'00" East 45.00 feet to a point; .J-(...)-0 E=NGIN1:—C—R ;, INC. 5903 Vlanklln Road • pots*, Wano 83705 Project: 7543-18 Date: September 8, 1977 Revised: April 14, 1978 Page: 2 - Cherry Lane Village Lake & Clubhouse Areas and Golf Courses 10 & 18 71 thence South 87°20'00" East 78.40 feet to a point; thence South 68°00'00" East 61.48 feet to a point; thence South 71°33'25" East 88.05 feet to a point; thence South 60°00'00" East 1.08.33 feet to a point of beginning of curve; thence Northeasterly along a curve to the right 139.32 feet, said curve having a central angle of 25°35'19", a radius of 311.95 feet, tan- gents of 70.84 feet and a long chord of 138.16 feet bearing North 56°12'20" East to a point of tangent; thence North 69°00'00" East 115.08 feet to a point of curve; - thence Northeasterly along a curve to the left 125.75 feet, said curve having`a::central angle of 24°25'22", a radius of 295.00 feet, tangents of 63.84 feet and a long chord of 124.80 feet bearing North 56°47'19" East to a­point. o a�ending of curve; :hence North 44°00'00" West 79.63 feet to a point; thenc;e North 67°45'00" West 160.00 feet to a point; thence South 65°50'00" West 244.67 feet to a point; thence North 50°30'00" West 114.35 feet to a point; thence North 44°00'00" East 90.00 feet to a point; thence North 17°00'00" West 175.00 feet to a point; thence North 12°00'00" East 280.00 feet to a point; thence North 77°30'00" West 170.00 feet to a point; thence South 68°00'00" West 265.00 feet to a point marking the Northeast corner of the SW 1/4 of the said Section 3; thence North 75°30'00" West 190.00 feet to a point; thence North 40°00'00" West 40.00 feet to a point; thence South 75°59'31" West 70.00 feet to a point; -- ------ --• ---. • •..-•.... r. Y.0 pV110, 1Vanu OJIV7 1 I'rojcct: 7543-13 Date: September 3, 1977 Revised: April 14, 1978 Page: 3 -- Cherry Lane Village Lake & Clubhouse Areas and Golf Courses 10 S 18 thence South 25`00'00" West 64.19 feet to a point on the said Ncrtherly boundary of the N 1/2 of the S 1/2 of Section 3; thence North 89°25'06" Wast 254.51 feet along the said Northerly boundary of the N 1/2 of the S 1/2 of Section 3 to the point of begin- ning, comprising 17.75 acres, more or less. Prepared by: n J -U-$ ENGINEERS, Inc. ERED 14 Q - G, qrF 0? R00��Se o • Gary L. Rodenspiel, L.S. E VJAP.:na�`" J -1 -J -B ENGINEERS, IN $903 Franklin A08d • noise, la.r,o $3705 Project: 7543-18 Date: September 8, 1977 DESCRIPTION FOR CHERRY LANE VILLAGE GOLF COURSE NO. 11 A PORTION OF THE N 1/2 SE 1/4, SECTION 3, T.3N., R.1W., B.M., MERIDIAN, ADA COUNTY, IDAI10 thence North 19°36'38" West 100.00 feet to a point; thence North 69°00'00" East 15.08 feet to a point of curve; fence Northeasterly along a curve to the left 200.57 feet, said curve having a central angle of 33°18'35", a radius of 345.00 feet, tangents of 103.21 feet and a long chord of 197.76 feet bearing North 52°20'43" East to a point of ending of curve; thence South 54°18135" East 73.51 feet to a point; thence North 65°00100" East 78.00 feet to a point; thence South 57000'00" East 20.00 feet to a point; A parcel of land lying in a portion of the N 1/2 of the SE 114 of Section 3,'T.3N., R.ZW., B.M., Meridian, Ada County, Idaho and more par- tidularly described as follows: Beginning at a point marking the Northeast corner of the said SE 1/4 of Section 3; thence South 61°14'35" West 499.02 feet to a point, also said point being the REAL POINT OF BEGINNING; thence South 31°00'00" East 100.00 feet to a point; t6nce South 54°00'00" West 180.00 feet to a point; thence South 66° 00s 00 West 200.00 feet to a point, thence South 83°30'00" West 433.26 feet to a point; hence South 79°45'00" West 260.25 feet to a point; thence South 57 00'00' East 20.00 feet to a point; thence South 83°15'00" West 400.00 feet•to a point; thence South 65°23'33" West 78.68 feet to a point; thence North 19°36'38" West 100.00 feet to a point; thence North 69°00'00" East 15.08 feet to a point of curve; fence Northeasterly along a curve to the left 200.57 feet, said curve having a central angle of 33°18'35", a radius of 345.00 feet, tangents of 103.21 feet and a long chord of 197.76 feet bearing North 52°20'43" East to a point of ending of curve; thence South 54°18135" East 73.51 feet to a point; thence North 65°00100" East 78.00 feet to a point; thence South 57000'00" East 20.00 feet to a point; J -U -B ENGINEERS, IN 5903 Franklin Road • 0011e, Idaho 63703 Project: 7543-18 Date: September 8, 1977 Page: 2 - Cherry Lane Village Golf Course No. 11 thence North 77°00'00" East 325.00 feet to a point; thence North 82°00'00" East 390.00 feet to a point; thence North 76°30'00" East 305.00 feet to a point; thence North 65°15'00" East 145.00 feet to the point of beginning, comprising 5.03 acres, more or less. Prepared by: J -U -B ENGINEERS, Inc. Gary L. Rodenspiel, L.S. EWW/JAP:na , ' J -U- ENGINEERS, INC. 5903 Franklin Road • Boise, Idaho 63705 Project: 7543-18 Date: September 8, 1977 Revised: September 27, 1978 REVISED DESCRIPTION FOR CHERRY LANE VILLAGE GOLF COURSES 12 & 13 A PORTION OF THE E 1/2 SE 1/4, SECTION 3, T.3N., R.N., B.M., MERIDIAN, ADA COUNTY, IDAHO A parcel of land lying in a portion of the E 1/2 of the SE 1/4, Section 3, T.U., R.1W., B.M., Meridian, Ada County, Idaho and more particularly described as follows: Beginning at a point marking the Northeast corner of the said E 1/2 of the SE 1/4 of Section 3; thence South 36°05'29" West 623.99 feet to a point, also said point being " Othence the REAL POINT OF South BEGINNING; 38°00'00" West 305.00 feet to a point; *'hei. e South 32°00' 00" West 205.00 feet to a point; thence South 29045'00" West 115.00 feet to a point; D thence South 8°30'00" West 220.00 feet to a point; thence South 0°00'00" East 400.00 feet to a point; thence South 87°00'00" East 185.00 feet to a point; thence South 1°00'00" West 194.39 feet to a point; thence South 21°15'00" West 109.02 feet to a point of curve; thence Southeasterly along a curve to the left 263.44 feet, said curve having a central angle of 201°15'00", a radius of 75.00 feet, no tangents and a long chord of 147.43 feet bearing South 79°22'30"East to a point of tangent; thence North 0°00'00" East 40.00 feet to a point; thence North 22°15'00" West 110.00 feet to a point; ' thence North 6°00'00" East 320.00 feet to a point; thence North 88°00'00" West 145.00 feet to a point; thence North 6°30'00" East 150.00 feet to a point; +,J"U-B ' ENG.NEERS, INC. 5903 Prankiin Road • Bolsa, Idaho 83705 Project: 7543-18 Date: September 8, 1977 Revised: September 27, 1978 Page: 2 - Cherry Lane Village Golf Courses 12 & 13 thence North 19°00'00" East 180.00 feet to a point; thence North 3°00'00" East 260.00 feet to a point; thence North 35030'00" East 250.00 feet to a point; thence North 22045'00" East 265.00 feet to a point; thence North 65045'00" West 60.00 feet to,the point of beginning, comprising 5.37 acres, more or less. D EWW/JAP:cc Prepared by: 3 -U -B ENGINEERS, Inc. Gary L. Rodenspiel, L.S. • J--Q,--B ENGINEERS, IN 5003 FNnklin Road . 00118} +aa"T 83705 i F thence North 14°00'00" West 125.00 feet to a point; thence North 87°19'00" West 125.00 feet to•a point; thence South 35°00'00" West 78.00 feet to a point; thence South 16°30100" West 110.00 feet to a point; thence South 35°00'00" West 156.91 feet to a point; thence South 61°43'00" West 315.50 feet to a point; thence South 49°21'00" West 157.00 feet to a point; Project: 7543-18 Date: September 8, 1977 DESCRIPTION FOR CHERRY LANE VILLAGE GOLF COURSES 14 THRU 17, A PORTION OF THE SE 1/4, SECTION 3, T.3N., R.1W., B.M., MERIDIAN, ADA COUNTY, IDAHO A parcel of land lying in a portion of the SE 1/4 of Section 3, T.3N., R.1W., B.M., Meridian, Ada County, Idaho and more particularly described as follows: Beginning at a point marking the Southeast corner of the said SE 1/4 of Section 3; thence North 43°59'32" West 622.10 feet to a point, also said point being the.REAL POINT OF BEGINNING; thence South 86°28'00" West 143.88 feet to a point; {� thence South 83°08'00" West 328.98 feet to a point; U tbenc North 85°22'00" West 165.85 feet to a point; tiheiiee lbrth 73058'00" West 145.93 feet to a point; thence North 62°40'00" West 156.09 feet to a point; thence North 52°38'00" West 154.62 feet to a point; thence North 67°52'00" West 168.57 feet to a point; thence North 58°10'00" West 89.42 feet to a point; thence North 28°37'00" West 100.04 feet to a point; thence North 14°00'00" West 125.00 feet to a point; thence North 87°19'00" West 125.00 feet to•a point; thence South 35°00'00" West 78.00 feet to a point; thence South 16°30100" West 110.00 feet to a point; thence South 35°00'00" West 156.91 feet to a point; thence South 61°43'00" West 315.50 feet to a point; thence South 49°21'00" West 157.00 feet to a point; - .J -U -B ENGINEERS, IN 0903 Feanktln Noad • Oolse, Idaho 83705 Project: 7543--18 Date: September 8, 1977 Page: 2 - Cherry Lane Village Golf Courses 14 thru 17 thence South 80°18'00" West 80.78 feet to a point; thence North 37°47'00" West 79.68 feet to a point; thence North 0°09'00" East 171.92 feet to a point; thence North 32°50'00" East 231.74 feet to a point; thence North 30°03'39" East 225.00 feet to a point; thence North 44°15'00" East 137.90 feet -'to a point; thence North 54°45'00" East 283.52 feet to a point; thence North 41°11'55" West 106.78 feet to a point; thence South 66°45'00" West 166.25 feet to a point; (� thence North 57°12'00" West.68.36 feet to a point; U thence North 29°00'00" West 92.78 feet to a point; enc. " thence North 61000'00" East 86.26 feet to a point of curve; thence Northeasterly along a curve to the left 93.20 feet, said curve having -"a central angle of 23043'56", a radius of 225.00 feet, tangents of 47,28=Beet and a long chord of 92.53 feet bearing North 49008'02" East to a point of ending of curve; thence South North 58027'00" 81034'29" East East 100.63 389.33 feet feet to to a point; a thence point; thence South 44047'48" East 41.29 feet to a point; thence South 20030'00" East 80.00 feet to a point; thence South 13053'29" West 148.29 feet to a point; thence South 11015'00" East 25.46 feet to a point; thence South 43059'35" East 152.65 feet to a point; thence South 69030'00" West 20.00 feet to a point; thence South 1°00'00" West 100.00 feet to a point; J -'Q -B ENGINEERS, INC. 5903 Fl.nklln Road . Boise, Idaho 83705 Project: 7543-18 Date: September 26, 1978 TEMPORARY INGM;S-EGIZESS EAS MrNT NO. 1 DESCRIPTION FOR CHERRY LME VILLAGE A PORTION OF TIIE NE 1/4 SE 1/4, SECTION 3, T.3N., R.1W., B.M•, MERIDIAN, ADA COUNTY, IDAHO A 40 -foot temporary ingress -egress easement lying 20.00 feet Southwesterly of and 20.00 feet Northeasterly of and adjacent to ,the following described cen- terline; Beginning at the Southeast corner of the SE 1/4 of Section 3, T.3N., R.1W., B.M., Meridian, Ada County, Idaho; thence North 0'19111" East 2,643.15 feet along the Easterly boundary of the said SE 1/4 of Section 3 to a point marking the Northeast corner of the said SE 1/4 of Section 3.' - thence South 50021144" West 578.49 feet to a point, also said point being the Rk" POINT OF BEGINNING; thence South 24°43118" East 162.73 feet to the point of ending of the above describ4d'- 'etf6rline. �toe� trn Prepared by: J -U -B ENGINEERS, Inc. Gary L. Rodenspiel, L.S. EWW/KFR:dm J-'U-B� ENGINEERS, INC. 5903 Ffanklin Road • 8olse, Idaho 83705 11 OY Project: 7543-18 Date: September 26, 1978 =20RARY I:7GRESS-I:GIIESS EASMETIT .IO. 2 DI:SCRIPTMI FOR MERU LATE VILLAGE PORTION OF THE NW 1/4 SE 1/4, SECTION 3, T. 3:I. , R.1W. , B.M. , MERIDIAN, ADA COUNTY, IDAIIO A 40 -foot temporary ingress -egress easement lying 20.00 feet Southwesterly of and 20.00 feet Northeasterly of and adjacent to the following described cen- terline; Beginning at the Northeast corner of the SE 1/4 of Section 3, T.3N., R.1W., B.M., tferidiau, Ada County, Idaho; thence North 88'55'29" West 2,643.29 feet along the Northerly boundary of the said SE 1/4 of Secftoa 3 to a point marking the Northwest corner of the said SE`l/4 of Section 3;e c� I"heuce South 13°28'47" Last 1,258.43 feet to a point, also said point being the REAL "11,�IINT OF BEGINNING; 4. thence South 37°01151" East 00.5}0 feet to the point of ending of the above descr ue eu erline. s �seab�e en" Prepared by: J -U -B EN VEERS, Inc. �C3\SORE D 14N D C�� i EWW/KFR:dm 1. Roo���'� Gary L. Rodenspiel, L.S. J--U-B ENGINEERS, INC. 5903 Franklin Road • Boise, Idaho 83705 [07 �r vyi Project: 7543-18 Date: September 26, 1978 TMIPO.RARY INGUSS-EGRESS F,ASUMENT NO. 3 DESCUPTION FOR CIIE :rtY LANE VILLAGE PORTION OF THE NW 1/4 SE 1/4, SUCTION 3, T. 31N. , R.1W. , B.M. , MERIDIAN, ADA COMITY, IDAHO A 40 -foot temporary ingress -egress easement lying 20,00 feet Southwesterly of and 20.00 feet !northeasterly of and adjacent to the following described cen- terline; Beginning at the Northeast corner of the SE 1/4 of Section 3, T.314., R.1W., B.M., Ada County, Idaho; thence Horth 88"55'29" West 2,643.29 feet along the Northerly boundary of the said SE 1/4 of Section 3 to a point marking the Northwest corner of the said SE 1/4 of Section 3; .thence-quth 51'00107" East 960.70 feet to a point, also said point being the REAL POINT OF BEGINNING; ,�;,-t4e4ce4outh 31'03'01" East 50.82 feet to the point of ending of the. above described centerline. Prepared by: 3 -U -B ENGINEERS, Inc. E'dWIM : dm Gary L. Rodenspiel, L.S. J -'U -B_ ENGINEERS, INC. 5903 Franklin Road . 8otse, Idaho 83705 Project; 7543-18 Date; September 26, 1978 TE:fPORARY ING ZESS-EGRESS EASMiENT N0. 4 DESCRIPTIO3 FOR CHERRY LMiE VILLAGE PORTION OF T1iE SE 1/4 SE 1/4, SECTION 3, T.3tv., R.1W., B.M., MERIDIAN, ADA COUNTY, IDAHO A 40 -foot temporary ingress -egress casement lying 20.00 feet Southwesterly of and 20.00 feet Northeasterly of and adjacent to the following described cen- terliae; Beginning at the Northeast corner of the SE 1/4 of Section 3, T.3N., R.1W., B.M., Meridian, Ada County, Idaho; thence South 0'19'11" West 2,643.15 feet along the Easterly boundary of. the said SE 1/4 of Section 3 to a point marking the Southeast corner of the siddOSE 1/4 of SectiSii`3; thence North 46"07'05" West 7008.95 feet to a point, also said point being the PfA��INT OF BEGINNING; q e _L.. Epp is hence North 19'33'52" West 57.18 feet to a point of ends T p ng of the above described a,edeerline. res, xea: d eer Prepared by: J -U -B ENGINEERS, Inc. D EY ..1 'U, -B -'ENGINEERS, INC. 5003 Franklin Road • Bois*, Idaho 83705 Project: 7543-18 Date: September 26, 197^0 TEMPORARY ACCESS A'iD PARKING EASE:LENT DESCRIPTION FOR CHERRY LANE VILLAGE PORTION OF THE N 1/2 S 112, SECTION 3, T. 3N. , R.N. , B.M. , MERIDIAN, ADA COUNTY, IDAHO A temporary access and parking easement lying in the N 1/2 of the S 1/2 of -Section 3, T.3N., R.1W., B.M., Meridian, Ada County, Idaho and more parti- cularly,described as follows: Beginning at the Northeast corner of the said S 1/2 of Section 3; ..thence North 38855'29" West 2,643.29 feet along the Northerly boundary of the said S 1/2 ofa&ection 3 to a point marking the Northwest corner of the SE 1/4 of the said Section 3; at.raence South 59'37'17" West 651.55 feet to a point, also said point being the REAL POINT OF BEGINNING; jj thenca South 0°29'44" West 110.21 feet'to a point; thence South 68'54'11" East 169.56 feet to a point of curve; thence Southeasterly along a curve to the right 59.46 feet, also said curve having a.central angle of 34°04'10", a radius of 100.00 feet, tangents of 30.64°"feet and a long chord of 58.59 feet bearing South 51°52'06" East,to a point of tangent; thence South 34°50'01" East 451.00 feet to a point; thence South 56'00'00" West 245.82 feet along a line 60.00 feet Northerly of and parallel to the Northerly boundary of Cherry Lane Village No. 1 Subdi- vision, as filed for record in the office of the Ada County Recorder, Boise, Idaho, in Book 44 of Plats at pages 3537 through 3539 to a point; thence South 34°00'00" East 60.00 feet to an angle point on the said Northerly boundary of Cherry Lane Village No. 1 Subdivision; thence North 56°00100" East 305.46 feet along the said Northerly boundary of Cherry Lane Village No. 1 Subdivision to a point marking the Northeast cor- ner of Lot 2 of Block 9 of the said Cherry Lancs Village No. 1 Subdivision; thence South 43°58'10" East 75.57 feet along the Northeasterly boundary of the said Cherry Lane Village No. 1 Subdivision to a point; N I 1 LL 0 14 . VJ\/ VM: \/V VN Vel' 1J San t? 02 02:24= r 4AMCs•e9eSN V�►io v.a&" a,aea�u ,rrrrw�✓A �. rwl w 'iw�il ""New J. OuaiWtl l U' Jf l I W ti, V V ILLI \ lil.-I,1 1 f. l.Ll 1 r9/1'( -VV .Jl1V 1VV1 -LAW L1r5z� RIACM; 00as & !m -;;batt; molar-, !3O`:C 00701 _ oaitlimber .1.4; . t999 yrs c ams huc � rc . amara: amr rr s -ea ,08age tta9 471, 73133s WI16Y kiOil'diian �. uuuav eti►aaRie arW&A Zdaho S3642 Acis: Qwgry Law mcmitam inc. Leme Hear City ofMandian:. +1ZUz;L-,;z i (9-6' 3+65'11 ,x�a. i_i-:: 7-A1T-2. "%1v7v1T-v !l !t :t.s•P.r# v 5EP1affi 4111MT% i/i; 4 Ur�ltiStiiT\Si i3d3 Wotice is berebY given the Charry Lane R=eation, inc., an Idaho Cwpor=or&, the Lrssee under thea oeRain Agreement of Lease dated October 3, 1978 by and between the City of Meridian gs Lasaor and Cherry Lane Recreation, inc. as Le,Sser, uodc&, Pursuant to Article iS of said Agreenmt of Lease that the Leasee exercises its option to renew upon the sme tesma and coni tri"ons for an add'its"ong terns of thirty (30) years, to zomMence ort cmiration of the initial twenty --fes (25) _year tem speeded is Artiafe 2 of the said Agreement of ea . Very T —s_._a svt: W: Mr. o duan 13' F. lTigrii y, ]1! f via i'mium"e j J'-f..t.-B ENC -,INFERS, INC. 5903 Franklin ROad • 601se, idano 83705 Project: 7543-18 Date: September 26, 1978 Page: 2 - Temporary Access & Parking Easement for Cherry Lane Village thence North 22'15'00" East 60.05 feet to a point; thence North 35°00'00" West 285.33 feet to a point; thence North 51'45'00" West 580.00 feet to the point of beginning,• comprising 1.93 acres, more or less. Prepared by; J -U -B ENGINEERS, Inc. • R fD rq� H'] i Office of the City Attorney The City of Meridian - Idaho's Initial Point of Beginning To: Mayor and Council From: Wm. F. Gigray, III, William F. Nichols Subject: Agreement of Lease Golf Course Date: September 28, 1999 200 E. Carlton Ave. Po E Meridian ID 836 Phone: 288-2499 Fax: 2 E-mail: wfg@wpp RECEIV SEP 2 8 CITY OF Our office has reviewed the Golf Course Agreement of Lease dated October 3, 1978, with Cherry Lane Recreation, Inc., the NuPacific Agreement dated October 3, 1978 and the Memorandum of Understanding dated December 23, 1977, all related to the Golf Course. We reviewed these. agreements for the purpose of making recommendations regarding any ongoing responsibilities that the City has under any of these agreements. Review of Agreement of Lease, Chenv Lane In reviewing the Agreement of Lease Cherry Lane we noted the following unusual items or provisions. Section 4(b) requires that the golf course lessee make specific provisions for youth programs for "entertainment, instruction, and social' purposes. Section 8 requires the lessee to perform all of the city of Meridian's obligations contained in the city's agreement with NuPacific. Section 11 requires the lessee to indemnify the City from any damages, it mentions insurance, but does not contain any provisions requiring a specific amount of insurance. Section 16 gives the City the ability to review, but not to determine, the amount of greens fees charged to play the course. Section 15 contains very unusual options and lengthy provisions to renew the lease. Mavor SL Council Citv of Meridian September 28, 1999 Page 2 The lessee has exercised its first option to renew the lease for an additional term of 30 years to extend the lease through the year 2033. Near the end of that extended term, the City would need to negotiate with the current lessee, if the lessee expresses an intent to renew the lease for another ten years. This negotiation would be to determine what the terms and conditions of the second extension will be. The current language of the lease limits negotiation on the first renewal. The only limit that will be in place when it comes time to renegotiate the lease near the end of the first extended term, will be an obligation to negotiate in good faith. Therefore, at that time, terms such as the amount of rent to be paid, how the course is to be managed, and any other issues that will be important to the City at that time will be appropriate for negotiation into the new lease agreement. The City will not be bound to continue the lease on the same terms and conditions as the current lease. Review of Agreement — NuPacific The agreement with NuPacific is an important part of the current lease arrangement because of the tie-in between the NuPacific agreement and the current lease with Cherry Lane. The City's obligations under this agreement are fairly extensive. For example, on pages 4 and 5, the City is obligated to maintain and manage the golf course in a manner typical to municipal public courses nationwide. It also requires at least an annual review of operations of the course with the possible requirement for hiring an outside consultant to advise the City with regard to these issues. Merely entering into a lease like the one with Cherry Lane Recreation, Inc., does not excuse the City from performing according to the terms of the NuPacific agreement. This is a "nondelegable" provision. The City does not want to get into a position where it has to hire an outside consultant in order to satisfy the terms of the Nu Pacific agreement. We note that a few years ago, the City of Ontario, Oregon, spent a considerable amount of money hiring professional golf consultants to advise the City on the operation and maintenance of the Ontario municipal course. Page 6 of the NuPacific agreement contains a requirement that the City provide NuPacific with certified copies of insurance policies that cover the golf course. If these have not been provided in the past, it is possible that NuPacific may be willing to waive this requirement in writing. The term of the agreement with NuPacific has no definitive ending date. It Mayor & Council City of Meridian September 28, 1999 Page 3 specifies that the Agreement continues in effect as long as NuPacific or any transfers from NuPacific owns property in the Cherry Lane Village development. The Agreement can be terminated by mutual agreement of the parties, but otherwise it continues. It is also important to note that this particular agreement does not contain a standard "successors and assigns" clause which would make that particular agreement binding upon the successors and assigns of either party. Closely connected to the term of the agreement is the right on the part of NuPacific to re -purchase the golf course property from the City for its fair market value as determined by a bona fide offer from an unrelated third party or a certified appraisal. This ability to repurchase the golf course property continues through the term of the agreement and for an additional 15 years after the agreement is terminated. The default provisions under the Nu Pacific agreement are very strict. If the City failed to remedy a default after having been given 30 days written notice, specifying the default, then NuPacific could demand that the City deed the property back to NuPacific. Recommendations We have several recommendations to make regarding the golf course lease anc the NuPacific Agreement. 1. Lease Monitoring One department in the City needs to be designated to monitor the lessee's performance under the lease. That monitoring should include an ongoing review of youth programs at the course, an annual review of greens fees, annual verification of insurance coverage, annual review of golf course management which would include the condition of the course, utilization, and financial matters, including capital improvement expenditures, repairs, and preventive maintenance. Also included would be marketing and promotions, and even perhaps employment policies. 2. Negotiate an end to the NuPacific Agreement The City should also designate a department or person to make contact with Mayor & Council City of Meridian September 28, 1999 Page 4 NuPacific to determine if an early end to the agreement can be negotiated. If NuPacific has sold all of its property within the development, then they typically would not have any interest in continuing with this agreement since it would serve no purpose for their company. Negotiating an end to the agreement would have the advantage of starting the 15 year repur&iase time so that it would run out prior to the time that the extended lease will expire. More importantly an early termination of the agreement would cut off the possibility of a claim for reversion of title to NuPacific on the basis of some sort of claimed default. Conclusion and goals and recommendations The advantage to monitoring the lease and seeking early termination of the NuPacific agreement are closely tied to the public purpose of having the golf course it the first place. The golf course lease provides very little funds to the City, but does provide citizens of the community with a public golf course which in turn likely brings additional commerce to businesses in the community and brings the City additional tax revenue from increased property values of those homes located near th( course. It is a community asset and certain terms under the lease agreement give the City the ability to ensure that it continues to be a community asset. Assuming for purposes of this Memo, the renewal option has been exercised, and the lease will expire at the extended term in the year 2033, as stated before in this memo, the lease will be up for complete renegotiation including a reasonable rental payment. If for some reason or another, the current lessee chooses not to renew the lease in the year 2033 or if a new lease cannot be negotiated, then the Cit) must be prepared to operate and manage the course or solicit other qualified lessees to operate the course. Conducting a program of ongoing monitoring over the next 3� years will best position the City to be prepared to: 1. Negotiate with the current lessee; 2. Find a new lessee if unable to reach agreement with the current lessee; 3. . Operate the course as a City run enterprise; and 4. Ensure that the course is kept in top notch shape and does not deteriorate nea the end of the extended term. eyfZAWorkWMeridian 15360M\Cherry Lane Golf Course CUP\Course.Mem