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HomeMy WebLinkAboutDoc 540 - Lease Agrmt - Bend Trap Clubtttt 2� o -< Deschutes County Board of Commissioners 1300 NW Wall St., Suite 200, Bend, OR 97701 -1960 (541) 388 -6570 - Fax (541) 385 -3202 - www.deschutes.org AGENDA REQUEST & STAFF REPORT For Board Business Meeting of September 2, 2009 DATE: September 1, 2009 FROM: Sue Brewster Department: Sheriffs Office Phone # 385 -1714 TITLE OF AGENDA ITEM: Consideration of Board Signature of: Real Property Lease Deschutes County and Bend Trap Club Document #2009 -540. PUBLIC HEARING ON THIS DATE? No. BACKGROUND AND POLICY IMPLICATIONS: The Bend Trap Club owns real property known as tax lot 1204 located approximately twenty seve a (27) miles east of the city limits of Bend at milepost 30 on East Hwy 20. The Sheriffs Office desires to lease the property for its exclusive use as a shooting range and firearms training facility including the storage of equipment and materials, maintenance and other related activities. FISCAL IMPLICATIONS: The Sheriffs Office shall pay Bend Trap Club as basic rent a sum equal to the property tax levied on the leased real property and on adjoining tax lots 1212, 1213 and on tax lot 1206. Should property taxes on the leased real property and on adjoining tax lots 1212, 1213 and on tax lot 1206 exceed five thousand dollars ($5,000) annually, the Sheriffs Office has the option of renegotiating this lease, which may include termination, for any year in which said taxes exceed $5,000. Said rent amount reflects the savings on leased real property taxes accruing by way of leased real property tax exemptions obtained by the Sheriff's Office on the leased real property, pursuant to ORS 307.112. RECOMMENDATION & ACTION REQUESTED: Sign Real Property Lease Deschutes County and Bend Trap Club Document #2009 -540 ATTENDANCE: Capt. Mark Mills, Sheriff's Office DISTRIBUTION OF DOCUMENTS: Return originals to Sue Brewster, Legal Counsel, Sheriff's Office for distribution. DESCHUTES COUNTY DOCUMENT SUMMARY Date: September 1, 2009 Department: Sheriffs Office Contractor /Supplier /Consultant Name: N/A Contractor Contact: Contractor Phone #: Type of Document: Document 2009 -540 is a Real Property Lease Goods and/or Services: The Sheriff's Office desires to lease a portion of the Bend Trap Club's property for its exclusive use as a shooting range and firearms training facility including the storage of equipment and materials, maintenance and other related activities. Background & History: At the County's request, the Sheriffs Office was required to move its shooting range. The Bend Trap Club offered to lease a portion of its property near milepost 30 on Hwy 20 to the Sheriff's Office for a 99 year lease if the Sheriffs Office would pay for its real property taxes on its entire property. Agreement Starting Date: June 30, 2009 Ending Date: June 30, 2108 Annual Value or Total Payment: The Sheriff's Office shall pay Bend Trap Club as basic rent a sum equal to the property tax levied on the leased real property and on adjoining tax lots 1212, 1213 and on tax lot 1206. Should property taxes on the leased real property and on adjoining tax lots 1212, 1213 and on tax lot 1206 exceed five thousand dollars ($5,000) annually, the Sheriff's Office has the option of renegotiating this lease, which may include termination, for any year in which said taxes exceed $5,000. Said rent amount reflects the savings on leased real property taxes accruing by way of leased real property tax exemptions obtained by the Sheriff's Office on the leased real property, pursuant to ORS 307.112. Insurance Certificate Received (check box) Insurance Expiration Date: Check all that apply: ❑ RFP, Solicitation or Bid Process ❑ Informal quotes ( <$150K) ❑ Exempt from RFP, Solicitation or Bid Process (specify — see DCC §2.37) Funding Source: (Included in current budget? ® Yes ❑ No If No, has budget amendment been submitted? ❑ Yes ❑ No 9/1/2009 Is this a Grant Agreement providing revenue to the County? ❑ Yes ® No Special conditions attached to this grant: Deadlines for reporting to the grantor: If a new FTE will be hired with grant funds, confirm that Personnel has been notified that it is a grant- funded position so that this will be noted in the offer letter: ❑ Yes ❑ No Contact information for the person responsible for grant compliance: Name: Phone #: Departmental Contact and Title: Capt. Marc Mills Phone #: 388 -6657 Department Director Approval: Signature Date Distribution of Document: Return originals to Sue Brewster, Legal Counsel, Sheriff's Office, for distribution. Official Review: County Signature Required (check one): ® BOCC ❑ Department Director (if <$25K) ❑ Administrator (if >$25K but <$150K; if >$150K, BOCC Order No. Legal Review Document Number 2009 -540 Date /— (cj 9/1/20( 9 REVIEWED LEGAL COUNSEL REAL PROPERTY LEASE ESCHUTES COUNTY AND BEND TRAP CLUB DOCUMENT # 2009 -540 THIS LEASE, made and entered into by and between Bend Trap Club, Lessor, and DESCHUTES COUNTY, a political subdivision of the State of Oregon, by and through its Sheriffs Office, herein called "Lessee," Lessor owns leased real property known as tax lot 1204 located approximately twenty seven (27) miles east of the city limits of Bend at milepost 30 on East Hwy 20, Oregon 97701, hereinafter called the "leased real property" and generally described as follows: Approximately 119.3 acres of leased real property containing a 40'x 40'farm/storage building situated in Government Lot 1 and the Southeast 1/4 of the Northeast 1/4 and the Northeast 1/4 of the Southeast 1/4 of Section 6, Township 20 South, Range 16 East of the Willamette Meridian, Deschutes County, Oregon. There are no encumbrances of record and none common and apparent on the land. Lessee desires to lease the described leased real property for its exclusive use as a shooting range and firearms training facility including the storage of equipment and materials, maintenance and other related activities. In consideration of the mutual covenants and agreements herein contained, and for other good and valuable consideration, the Lessor and the Lessee agree as follows: 1. TERM AND RENEWAL The term of this Lease shall commence as of June 30, 2009, and continue through June 30, 2108, a period of ninety nine (99) years. 2. TERMINATION After a period of ten (10) years from the commencement of this lease (after July 1, 2019), this Lease may be terminated by either party for any reason upon ninety (90) days written notice to each other. 3. POSSESSION Lessee's exclusive right to possession and obligations under the Lease shall continue uninterrupted, except as otherwise provided herein. 4. CONDITION OF PROPERTY Lessor covenants and represents that it has full right, power, and authority to enter into this Lease for the term herein granted and that the leased real property may be used by the Lessee during the entire term for the purposes herein set forth. Lessor further covenants that the leased real property meets all current local, state and federal codes, ordinances, regulations and laws relating to the occupancy and use of said leased real property. PAGE 1 OF 9 — LEASED REAL PROPERTY LEASE —Bend Trap Club Deschutes County Document # 2009 -540 08/31/09 (C &A \SHER \lease /Bend trap Club 2009 5. RENT Lessee shall pay to Lessor as basic rent a sum equal to the property tax levied on the leased real property and on adjoining tax lots 1212, 1213 and on tax lot 1206. Should property taxes on the leased real property and on adjoining tax lots 1212, 1213 and on tax lot 1206 exceed five thousand dollars ($5,000) annually, Lessee has the option of renegotiating this lease, which may include termination, for any year in which said taxes exceed $5,000. Lessee Said rent amount reflects the savings on leased real property taxes accruing by way of leased real property tax exemptions obtained by Lessee on the leased real property, pursuant to ORS 307.112. Rent shall be payable on November 1st of each year without notice or demand to Bend Trap Club, P.O. Box 7774, Oregon 97708 or at such other place as may be designated in writing by Lessor. 6. SECURITY DEPOSIT No security deposit shall be required as a condition of this Lease. 7. ADDITIONAL RENT As additional rent consideration, Lessee agrees to become a special member of the Bend Trap Club. Lessees' annual special membership fee shall be the rent paid under section 5 of this lease. Lessee shall not incur any additional costs or conditions for special membership in the Bend Trap Club other than what is required under this lease. Individual employees of the Sheriff's Office shall not be required to pay any additional fees or costs unless the employee elects to become a regular member of Lessor, but shall be required to meet the restrictions of membership set forth in Lessor's by -laws. In addition, Lessee shall: a. Buy and have delivered to the leased real property a cistern of at least 3,000 gallons and a pump for the cistern. d. Pay all other amounts, which the Lessee is required to pay by any other provisions of this Lease. 8. PERMITTED USE The leased real property shall be used as a shooting range and firearms training facility including the storage of equipment and materials, maintenance and other related activities as permitted under ORS 16.170 -176 and ORS 467.131 -138. 9. RESTRICTIONS ON USE In connection with the use of the leased real property, Lessee shall: a. Use the leased real property only as set forth in paragraph 8, above. b. Obtain Lessor's written approval in advance of any placement of signs, development plans, layout plans, construction, reconstruction, or alteration of improvements; or revision of layout or construction plans for the leased real property. PAGE 2 OF 9 — LEASED REAL PROPERTY LEASE —Bend Trap Club Deschutes County Document # 2009 -540 08/31/09 (C &A \SHER \lease /Bend trap Club 2009 c. Occupy the improvements, structures and leased real property in a manner consistent with reasonable standards of orderliness, neatness, sanitation, and safety acceptable to Lessor, and shall not allow solid wastes to accumulate on the leased real property. d. Conform to all applicable laws and regulations of any public authority affecting the leased real property and the use of said leased real property, and correct at Lessee's own expense any failure of compliance created exclusively through the fault of Lessee and not related to or caused by a defect, deficiency or condition of said leased real property which predated the execution of this Lease. e. Exercise diligence in protecting from damage the leased real property and property of Lessor covered by and used in connection with this Lease. f. Refrain from the disposal, spilling or discharging of any oil, gasoline, diesel fuel, chemicals, wood waste products, or other pollutants on the leased real property. In the event of such spills, Lessee shall undertake any and all necessary actions to contain and remove such pollution from the leased real property. 10. LESSOR'S OBLIGATIONS The following shall be the responsibility of the Lessor's: a. Maintain general casualty insurance coverage for all structures on the leased real property. b. Install and maintain a functional cistern on the leased real property. c. Install a separate electrical meter on the leased real property. d. Provide water from Lessor's water source(s), as available, for use on the leased real property. e. Arrange for and deliver to the leased real property, appropriate garbage container(s). f. Repair and maintain the building and leased real property in a safe, functional and attractive condition. g. Repair and maintain the roadway into the leased real property, including snow removal, in a timely and orderly manner. h. Allow ingress and egress to the leased real property. i. As a condition of special membership, allow Lessee access to the Bend Trap Club house and premises as to be agreed upon by the parties. 11. LESSEE'S OBLIGATIONS The following shall be the responsibility of the Lessee: a. Any repairs necessitated by the negligence of Lessee, his agents, employees and invitees. b. Pay Lessor for any damage resulting from negligence or from the violation of the terms of this Lease. c. Pay for utility services, including electrical service, necessary for the utilization of the leased real property for the purposes set out in section 8. d. Provide for transportation of and pay the charges for garbage disposal for the leased real property and on adjoining tax lots 1212, 1213 and on tax lot 1206 provided such disposal amounts are not unusual in content or quantity. Unusual content or quantity garage disposal fees shall be paid by the party generating such garbage. PAGE 3 OF 9 — LEASED REAL PROPERTY LEASE —Bend Trap Club Deschutes County Document # 2009 -540 08/31/09 (C &A \SHER \lease /Bend trap Club 2009 e. Pay one half the reasonable costs of roadway maintenance into the leased real property. f. Pay amounts which Lessee is required to reimburse Lessor for expenses incurred by Lessor in discharging Lessee's obligations pursuant to this lease. g. Maintain any irrigation system installed for the benefit of Lessee on the leased real property h. Arrange for and pay for any necessary toilet service. i. Repair the fencing on the north side of tax lot 1204. j. Install and maintain signage on the perimeter of tax lots 1204, 1212 and 1206. 12. INSPECTION OF LEASED REAL PROPERTY Lessor shall have the right to inspect the real property in the Lessee's presence at any reasonable time or times and in a non - disruptive manner after giving reasonable notice. 13. ENVIRONMENTAL POLLUTION The provisions of this section supplement other Lease provisions that might be applied concerning Lessor and Lessee's obligations, responsibilities and liabilities for environmental pollution, present and future, and for compliance with the laws, regulations or orders of any governmental agency concerning environmental pollution, present and future, on the leased real property. To the extent that the provisions of this section conflict with any such other provisions, the provisions of this section shall control. Where terms of this section use terms that are found in applicable state and federal environmental pollution laws, those terms shall have the same meaning as they have in those state and federal laws. Lessor covenants that the leased real property does not now contain any amounts of hazardous, toxic, radioactive or other substances for which a property owner or operator may be made liable under state or federal environmental pollution or health and safety laws. Accordingly, Lessor agrees that as between the Lessor and Lessee, Lessor will assume responsibility and liability as set forth below in the removal and indemnification provision for any release or discharge of hazardous, toxic, radioactive or other dangerous substances regulated under state or federal pollution control laws which occurred prior to Lessee's possession of the leased real property. Except as undertaken in the ordinary course of conducting its business, Lessee covenants that during the term of this Lease, Lessee will not generate, store, process or dispose of or release or discharge into the environment hazardous, toxic, radioactive or other dangerous substances on or about the leased real property in any amount, nor will Lessee allow such prohibited activities to take place on the leased property during the Lease term. Lessee covenants to report, contain and remove in conformance with applicable standards of Department of Environmental Quality (DEQ) or its successor in interest under state law and federal law any releases of hazardous, toxic, radioactive or other substances regulated under state or federal pollution control laws that are found to have been introduced to the leased PAGE 4 OF 9 — LEASED REAL PROPERTY LEASE —Bend Trap Club Deschutes County Document # 2009 -540 08/31/09 (C &A \SHER \lease /Bend trap Club 2009 real property by Lessee during the term of this Lease or any releases of such materials found off the leased real property that originated from the leased real property during the Lease term and to be responsible for the cost of removal of such substances. Lessor agrees to indemnify, defend and hold the County, its officers, agents and employees harmless from and against any claims, demands, causes of action or suits for damages, reimbursement or any other cost of compliance, including, but not limited to, remedial action costs, removal costs, natural resources damages, penalties, punitive damages, interest costs, attorney fees and damages of any kind to third parties, arising from the discharge, release or threatened release on or in the leased real property of any hazardous, toxic or radioactive substances occurring prior to the term of this Lease. The obligations, responsibilities and liabilities of this section are continuing obligations, responsibilities and liabilities and shall not be extinguished by the termination of this Lease. 14. PARTIAL TAKING If a portion of the leased real property is condemned and the paragraph entitled "Total Taking" does not apply, the Lease shall continue on the following terms: a. Lessor shall be entitled to all of the proceeds of condemnation and Lessee shall have no claim against Lessor as a result of the condemnation. However, Lessee shall be entitled to any and all relocation proceeds. b. Lessor shall proceed as soon as reasonably possible to make such repairs and alterations to the leased real property as reasonably practicable to return the leased real property to its condition existing at the time of the condemnation. The Lessor may, but shall not be required to, perform alterations prior to the actual taking after the portion to be taken has been finally determined. Rent shall be abated to the extent the leased real property is untenable during the period of alteration and repair. c. After the date on which title vests in the condemning authority or an earlier date on which alterations or repairs are commenced by Lessor to restore the balance of the property in anticipation of taking, the rent shall be reduced commensurately with the reduction in value of the leased real property as an economic unit on account of the partial taking. If the parties are unable to agree upon the amount of the reduction of rent, the amount shall be determined by Arbitration Service of Portland or a similar service. d. If a portion of the Lessor's leased real property not included in the leased real property is taken and severance damages are awarded on account of the leased real property, or an award is made for detriment to the leased real property as a result of change of grade of adjacent streets or other activity by a public body not involving a physical taking of any portion of the land, this shall be regarded as a partial condemnation of which sub- paragraphs (A) and (C) of "Partial Taking" above apply, and the rent shall be reduced to the extent of diminution of value of the leased real property as though a portion had been physically taken. PAGE 5 OF 9 — LEASED REAL PROPERTY LEASE —Bend Trap Club Deschutes County Document # 2009 -540 08/31/09 (C &A \SHER\lease /Bend trap Club 2009 15. TOTAL TAKING If a condemning authority takes all of the leased real property or a portion sufficient to render the leased real property reasonably unsuitable for the use, which the Lessee was then making of the leased real property, the Lease shall terminate as of the date the title vests in the condemning authority. Termination as described herein shall not impair Lessees right to relocation assistance benefits. 16. SALE IN LIEU OF CONDEMNATION - DEDICATION TO THE PUBLIC Sale of all or part of the leased real property to a purchaser with the power of eminent domain in the face of a threat or probability of the exercise of the power shall be treated for the purpose of this Paragraph as a taking by condemnation. Dedication to the public, sale, or transfer of all or a portion of the leased real property of Lessor to a municipal corporation, the State of Oregon or United States of America, shall be treated as a total or partial taking, as applicable. 17. LIENS Except with respect to activities for which the Lessor is responsible, the Lessee shall pay as due all claims for work done on and for services rendered or material furnished to the leased real property and shall keep the leased real property free from any liens related to Lessee's occupation of the leased real property. If Lessee fails to pay any such claims or to discharge any lien, Lessor may do so and collect the cost as additional rent. Any amount so added shall bear interest at the rate of nine per cent (9 %) per annum from the date expended by Lessor and shall be payable on demand. Such action by Lessor shall not constitute a waiver of any right or remedy, which Lessor may have on account of Lessee's default. Lessee may withhold payment of any claim in connection with a good faith dispute over the obligation to pay, so long as Lessor's property interests are not jeopardized. If a lien is filed as a result of nonpayment, Lessee shall, within thirty (30) days after knowledge of the filing, secure the discharge of the lien or deposit with Lessor cash or a sufficient corporate surety bond or other surety satisfactory to Lessor in an amount sufficient to discharge the lien plus any costs, attorney fees and other charges that could accrue as a result of a foreclosure or sale under a lien. 18. LIABILITY INSURANCE The liability of Lessee as a self - insured political subdivision of the State of Oregon is governed by the provisions of Oregon Revised Statutes. Lessee shall not be obligated to provide additional or supplementary liability insurance coverage. 19. ASSIGNMENT AND SUBLEASE The Lessee may not sublease or assign the use of the leased real property covered under this Lease. 20. DEFAULT The following shall be events of default: a. Failure of Lessee to pay any rent or other charge within thirty (30) days after it is due. b. Failure of either Lessor or Lessee to comply with any term or condition or fulfill any obligation of the Lease within sixty (60) days after written notice by the other party specifying the nature of the default with reasonable particularity. If the default is in such PAGE 6 OF 9 — LEASED REAL PROPERTY LEASE —Bend Trap Club Deschutes County Document # 2009 -540 08/31/09 (C &A \SHER \lease /Bend trap Club 2009 a nature that it cannot be completely remedied within the sixty (60) day period, this provision shall be complied with if the defaulting party begins correction of the default within the sixty (60) day period and thereafter proceeds with reasonable diligence and in good faith to effect the remedy as soon as practicable. 2L REMEDIES ON DEFAULT a. In the event of default, the Lease may be terminated at the option of the party not in default by notice in writing to the defaulting party. The notice may be given at any time after the grace period for default given under the paragraph entitled "Default." If the property is abandoned by Lessee in connection with a default, termination shall be automatic and without notice. b. The foregoing remedies shall be in addition to, and shall not exclude, any other remedy available to either party under applicable law. 22. PERSONAL PROPERTY a. All personal property placed upon the leased real property during the term by Lessee shall remain the property of Lessee except as otherwise provided herein. b. Upon abandonment, termination, revocation, or cancellation of this Lease, the Lessee shall remove, within a reasonable time, all personal property. If Lessee fails to remove all or part of such personal property within sixty (60) days, then they shall become the property of Lessor. 23. SURRENDER OF LEASED REAL PROPERTY Upon abandonment, termination, revocation or cancellation of this Lease, the Lessee shall surrender the leased real property to Lessor in the same condition as the leased real property was on the date of possession. With Lessor's approval, Lessee may leave site improvements authorized by any land use permit. Lessee's obligation to observe and perform this covenant shall survive the expiration or the termination of the Lease. 24. NOTICES Any notice by Lessee to Lessor or Lessor to Lessee must be served by certified or registered mail, postage prepaid, addressed to the other at the address given below or at such other address as either may designate by written notice. LESSOR: LESSEE: President Training Captain Bend Trap Club Deschutes County Sheriff's Office P.O. Box 7774 63333 W. Hwy 20 Bend, OR 97708 Bend, OR 97701 PAGE 7 OF 9 — LEASED REAL PROPERTY LEASE —Bend Trap Club Deschutes County Document # 2009 -540 08/31/09 (C &A \SHER \lease /Bend trap Club 2009 25. NON - WAIVER Waiver by either party of strict performance of any provision of this Lease shall not be a waiver of or prejudice the party's right to require strict performance of the same provision in the future or of any other provision. 26. PARTNERSHIP Lessee is not by virtue of this Lease a partner or joint venturer with Lessor in connection with activities carried on under this Lease, and shall have no obligation with respect to Lessor's debts or any other liabilities of each and every nature. 27. AGENCY It is agreed by and between the parties, that neither party is carrying out a function on behalf of the other party, and neither party has the right of direction or control of the other party's business under this Lease nor shall either party exercise any control over the activities of the other party. 28. LAND USE PERMIT This Lease does not constitute a and use permit, nor does acceptance of this Lease by Lessee constitute approval of any legislative or quasi-judicial action required as a condition precedent to use of the and for the intended purpose. 29. LESSOR'S RIGHT TO CURE DEFAULTS If the Lessee fails to perform any obligations under this Lease, the Lessor shall have the option to do so after thirty (30) days written notice to the Lessee. All of the Lessor's expenditures to correct the default shall be reimbursed by the Lessee on demand with interest at the rate of nine per cent (9 %) per annum from the date of expenditures by the Lessor. This provision shall not be construed as placing any obligation upon Lessor to perform obligations assigned to Lessee herein. 30. NON- APPROPRIATION In the event sufficient funds shall not be appropriated for the payment of rent required to be paid under this Lease, and if Lessee has not funds legally available for rent from other sources, then Lessee may terminate this Lease. If this Lease is to be terminated by reason of non - appropriation of funds, Lessee shall give Lessor 90 days advance written notice of the date of termination. Any termination hereunder shall coincide with the beginning of the Lessee's fiscal year. 31. LITIGATION FEES AND EXPENSES In the event an action, suit or proceeding, including appeal there from, is brought for failure to observe any of the terms of this Lease, each party shall be responsible for its own attorney's fees, expenses, costs and disbursements for said action, suit, proceeding or appeal. 32. TIME IS OF THE ESSENCE Time is of the essence of each and every provision of this Lease. 33. SEVERABILITY The parties agree that if any term or provision of this Lease is declared by a court of competent jurisdiction to be illegal or in conflict with any law, the validity of the remaining terms and provisions shall not be affected, and the rights and obligations of the parties shall be construed and enforced as if the Lease did not contain the particular term or provision held to be invalid. PAGE 8 OF 9 — LEASED REAL PROPERTY LEASE —Bend Trap Club Deschutes County Document # 2009 -540 08/31/09 (C &A \SHER \lease /Bend trap Club 2009 34. AUTHORITY The signatories to this agreement covenant that they possess the legal authority to bind their respective principals to the terms, provisions and obligations contained within this agreement. 35. MERGER This lease constitutes the entire lease between the parties. No waiver, consent, modification or change of terms of this lease shall bind either party unless in writing and signed by both parties. Such waiver, consent, modification or change, if made, shall be effective only in the specific instance and for the specific purpose given. There are no understandings, agreements, or representations, oral or written, not specified herein regarding this lease. Lessor, by the signature below of its authorized representative, hereby acknowledges that lessor has read this lease, understands it, and agrees to be bound by its terms and conditions. LESSOR: DATED this 1 day of p46144/34,--- , 2009. Bill Grafton President, Bend Trap LESSEE: DATED this day of , 2009. LARRY BLANTON, Sheriff BOARD OF COUNTY COMMISSIONERS FOR DESCHUTES COUNTY, OREGON TAMMY BANEY, Chair ATTEST: DENNIS R. LUKE, Vice Chair Recording Secretary ALAN UNGER, Commissioner PAGE 9 OF 9 — LEASED REAL PROPERTY LEASE —Bend Trap Club Deschutes County Document # 2009 -540 08/31/09 (C &A \SHER \lease/Bend trap Club 2009