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LEA-WHITEHALL LIBRARY -2027LEA-WHITEHALL LIBRARY -2027 LEASE AGREEMENT . This lease agreement was entered into on the fA day ofy!O v'ent~002 between THE TOWN OF WHITEHALL, a municipal corporation organ'zed under the laws of the State of Montana, having its principal place of business at 2 North Whitehall Street, City of Whitehall, County of Jefferson, State of Montana, referred to as lessor, and the BOARD OF TRUSTEES of the Jefferson County Library System, a public agency of Jefferson County, Montana, organized under the laws of the State of Montana, having its principal place of business at the Jefferson County Courthouse, City of Boulder, County of Jefferson, State of Montana, referred to as lessee. In consideration of the mutual covenants contained in this lease agreement, the parties agree as follows: SECTION ONE DESCRIPTION OF PREMISES Lessor leases to lessee the premises located in the City of Whitehall, County of Jefferson, State of Montana, and described more particularly as follows: .JOHN GREGORY LIBRARY BUILDING A/K/A ----- The Whitehall Community Library building, located on the North two~thirds (2/3) of lot 7, Block 2, of the Townsite of Whitehall as are more particularly described in the official plat thereof on file in the office of the Clerk and Recorder of Jefferson County, Montana. SECTION TWO TERM The term of this lease agreement is Twenty-fiv~ (25) years, beginning on I ().. day of 1)p1l~~'f 2002 and terminating at midnight on the Twenty fifth anniversary of said date. ~, Further, this lease may be sooner terminated if: a) The lessee ceases to use the premises for the purpose specified herein; b) The lessee provides the Lessor with sixty- (60) days' prior notice of termination; c) The premises are destroyed or damaged as herein provided; d) The lessee fails to timely pay the annual rental or otherwise breaches this agreement. This lease may be extended for additional terms of five (5) years each for five (5) consecutive renewals by mutual agreement of the parties upon the Lessee giving the Lessor ninety days advance notice, in writing, that they wish to renew. In this event both 1-- LEASE AGREEMENT 1- parties will endeavor to reach an agreement on the terms and conditions of the renewed lease prior to the time of termination of the existing lease. SECTION THREE RENT A. Total Rent: The total rent under this lease agreement is One Dollar ($1.00) annually. B. Due Date: Lessee shall pay lessor the above-specified, amount in advance, the first installment on the date of execution of this agreement and like installments on the anniversary date of this lease yearly during the term of the lease agreement. C. Cost Increase Modifications: The, lessor, without the consent of the lessee, may alter and adjust any provision of the lease, at any time during the term of said lease, upon written notice of not less that thirty (30) days to the lessee for the following reasons, or any of them: (i) changes required by federal, state or local law, rule or regulation; (ii) changes in rules relating to the premises. or the property ~here the premises are located. that are required to protect the physical health, safety or peaceable enjoyment of the lessee's and guests; (iii) changes in the amount or rent payable to cover additional costs in operating the premises incurred by lessor because of increases in charges for water and sanitary sewer or any other utility services consumed at the premises. including refuse pick-up or other such charges including premiums paid for insurance coverage. SECTION FOUR USE OF PREMISES The demised premises are to be us~d for the purposes of operating a public library facility for the benefit of the residents of Jefferson County, and the Town of Whitehall and for such accessory purposes as are usually associated therewith. Lessee shall restrict its use to such purposes, and .shall not use or permit tbe use' of the demised premises for any other purpose without the prior, express, and written consent of lessor, or lessor's au~orized agent. .' . SECTION FIVE RE~TRIl.-l,JONS ON USE A. Lessee shall not use the demised premises in any manner that will increase risks covered by insurance on the demised premises and result in an increase in the rate of insurance or a cancellation of any insurance policy, even if such use may be in furtherance of lessee's business purposes. B. Lessee shall not keep, use, or sell anything prohibited by any policy of fire 2--- LEASE AGREEMENT ._ ...........".._ _..ll~_' a._',',_ '. . . . insurance covering the demised premises, and shall comply with all requirements of the in~urers applicable to the demised premises necessary to keep in force the fire and liability insurance. SELIION SIX WASTE, NUISANCE, OR UNLAWFUL ACTIVITY Lessee shall not allow any waste or nuisance on the demised premises, or use or allow the demised premises to be used for any unlawful purpose. . I SECTION SEVEN DEL A Y IN DELIVERING POSSESSION This lease agreement shall not be rendered void or voidable by the inability of lessor to deliver possession to lessee on the date set forth in Section Two. Lessor shall not be liable to lessee for any loss or damage suffered by reason of such a delay; provided, however, that lessor does deliver possession no later than thirty (30) days after the execution of this lease. In the event of a delay in delivering possession, the rent for the period of such delay will be deducted from the total rent due under this lease agreement. No extension of this lease agreement shall result from a delay in delivering possession. SECTION EIGHT UTILITIES Lessor shall arrange and pay for all utilities furnished to the demised premises for the term of this lease agreement, including, but not limited to, electricity, gas, water, sewer, and telephone service. SECTION NINE REPAIRS, MAINTENANCE AND ALTERATIONS \ Lessee shall maintain the demised premises and keep them in good repair at its' expense. In this regard, Lessee, shall maintain and repair windows, doors, skylights, adjacent sidewalks, the building walls and roofs, the interior walls and aU mechanical fixtures. " No structural alterations, remodeling, substantial permanent changes or additions shall be made to the premises without the prior written consent of the Lessor, which consent shall not be unreasonable withheld. Any additions and fixtures placed on the premises, which do not constitute a permanent part thereof and which can be removed without substantial damage to the premises, may be removed by the Lessee at the end or '. ... other termination of the lease. Otherwise, any such additions of fixtures, permanently instaJled and present on the premises upon the termination or expiration of the Lease, 3--- LEASE AGREEMENT , ~'k::""-~;'$~~'~ JR-";'.;'.);"" .;~""~ .- shall remain thereon and shall be deemed the property of the Lessor. The Lessee at its own expense shall repair any damage caused by the Lessee's removal of the additions or fixtures. The cost of any and all such structural alterations, substantial permanent changes. or additions shall be paid solely by the Lessee, and the Lessor shall bear no responsibility for the payment of any of the same. Further, no lien for any such cost for improvements shall be permitted to attach to the leasehold premises at any time. SECTION TEN DELIVERY, ACCEPTANCE, AND SURRENDER OF PREMISES \ A. Lessor represents that the demised premises are in fit condition for use by lessee. Acceptance of the demised premises by lessee shall be construed as recognition that the demised premises are in a good state of repair and in sanitary condition. B. Lessee shall surrender the demised premises at the end of the lease term, or any renewal of such term, in the same condition as when lessee took possession, allowing for reasonable use and wear, and damage by acts of God, ihqluding fires and storms. Before delivery, lessee shall remove all business signs placed on the demised premises by lessee and restore the portion of the demised premises on which they were placed in the same condition as when received. SECTION ELEVEN PARTIAL DESTRUCTION OF PREMISES A. Partial destruction of the demised premises shall not render this lease agreement void or voidable, nor terminate it except as specifically provided in this lease agreement. If the demised premises are partially destroyed during the term of this lease agreement, lessor shall repair them when such repairs can be made in conformity with governmental laws and regulations, within sixty (60) days of the partial destruction. Written notice of the intention of lessor to repair shall be given to lessee within fifteen (15) days after any partial destruction. If the repairs cannot be made within the time sp~cified above, lessor shall~ have the option to make them within a reasonable time and continue this lease agreement in effect If the repairs cannot be made in One Hundred Twenty (120) days, and if lessor does not elect to make them within a reasonable time, either party shall have the option to ,terminate this lease agreement B. Disputes between lessor and lessee relating to provisions of this section shall be arbitrated. The parties shall each select an arbitrator, and the two arbitrators selected shall together select a third arbitrator. The three arbitrators shall determine the dispute, '. . and their decisions shall be binding on the parties. The parties shall divide the costs of arbitration equally between them. 4--- LEASE AGREEMENT \ .. "'"'d.'^d'dd... SEl..l ION TWELVE ENTRY ON PREMISES BY LESSOR A. Lessor reserves the right to enter on the demised premises at reasonable times to inspect them and lessee shaU perinit lessor to do so. B. Lessor may erect scaffolding, fences, and similar structures, post relevant notices, and place moveable equipment in connection with makipg alterations, additions, or repairs, aU without incurring liability to lessee for disturbance of quiet enjoyment of the demised premises, or loss of occupation of the demised premises. SECTION THIRTEEN SIGNS, AWNINGS, AND MARQUEES INSTALLED BY LESSEE \ A. Lessee shall not construct or place signs,! awnings, marquees, or other structures projecting from the exterior of the demised premises without the prior, express, and written consent of lessor. B. Lessee shall remove signs, displays, advertisements, or decorations it has placed on the premises that, in the opinion of lessor, are offensive or otherwise objectionable. If lessee fails to remove such signs, displays, advertisements, or decorations within sixty (60) days after receiving written notice from lessor to remove them, lessor reserves the right to enter the demised premises and remove them at the expense of lessee. SECTION FOURTEEN NONLIABILITY OF LESSOR FOR DAMAGES . \' Lessor shall not be liable for liability or damage claims for injury to persons or property from any cause relating to the occupancy of the demised premises by lessee, including those arising out of ~amages or losses occurring on sidewalks and other areas adjacent to the demised premises during the term of this lease agreement or any extension of such term. Lessee shall indemnify lessor from any and all liability, loss, or other damage claims or obligations resulting from any injuries or losses of this nature. In this regard it shall be the obligation of the lessee to carry general liability insurance in the minimum limits of $750,000.00 per person and $1,500,000.00 per incident and property damage coverage in the minimum amounts of $50,000.00 per person and $150,000.00 per incident to protect the Lessor from financial harm due to the negligence of the lessee as provided herein. . 5--- LEASE AGREEMENT , ild';__ SECTION FIFTEEN INSURANCE The leasehold premises shall be insured against loss by fire and other casualty by means of the master policy of insurance (including fire, casualty and extended coverage) maintained and paid for by the Town of Whitehall, (Lessor). SECTION SIXTEEN ASSIGNMENT, SUBLEASE, OR LICENSE A. Lessee shall not assign or sublease the demised premises, or any right or privilege connected with the demised premises, or allow any other person except agents and employees of lessee to occupy the demised premises or any part of the demised premises without first obtaining the written consent of lessor. Consent by lessor shall not be consent to a subsequent assignment, sublease, or occupation by other persons. \ I B. An unauthorized assignment, sublease, or license to occupy by lessee shall be void and shall terminate this lease agreement at the option of lessor. C. The interest of lessee in this lease agreement is not assignable by operation of law without the written consent oflessor. SECTION SEVENTEEN BREACH The failure of lessee to comply with each and every term and 'condition of this lease agreement shall constitute a breach of this lease agreement. Lessee shall have thirty (30) days after receipt of written notice from lessor of any breach to correct the conditions specified in the notice. If ~he corrections cannot be made .within the thirty-day period, Jessee shall have a reasonable time to correct the default if lessee commences action wiJhin fifteen (IS) days after receipt of the notice. SECTION EIGHTEEN REMEDIES OF LESSOR FOR BREACH BY LESSEE Lessor shall have the following remedies in addition to its other rights and remedies in the event Jessee breaches this lease agreement and fails to make corrections as set forth in Section Eighteen: 6--- LEASE AGREEMENT , t -. ...._ A. Lessor may reenter the demised premises immediately and remove the property and personnel of lessee, store the property in a public warehouse or at a place selected by lessor, at the expense of lessee. B. After reentry, lessor may terminate this lease agreement on giving thirty (30) days' written notice of termination to lessee. Without such notice, reentry will not terminate this lease agreement. On termination, lessor may recover from lessee all damages proximately resulting from the breach, including, but not limited to, the cost of recovering the demised premises and the balance of the rent payments remaining due and unpaid under this lease agreement. C. After reentering, lessor may relet the demised premises or any part of the demised premises for any term on such terms as it may choose. The duties and liabilities of the parties if the demised premises are relet shall not effect the Lessors remedies hereunder. In addition to lessee's liability to lessor for breach of this lease agreement, lessee may be liable for any alterations and repairs Lessor has to make, if such alterations or repairs are necessitated because of the breach of the less~<1. SECTION NINETEEN ATTORNEY FEES If lessor files an action to enforce any agreement contained in this lease agreement, or for breach of any covenant or condition, lessee shall pay lessor re~onable attorney fees for the services of lessor's attorney in the action, all fees to be fixed by the court. SECTION TWENTY CONDEMNATION Eminent domain proceedings resulting in the con~emnation of a part of the demised premises, but leaving the remaining premises usable by lessee for the purposes of its business, will not terminate this lease agreement unless lessor,. at its option, tenninates this lease agreetpent by giving written notice of termination to lessee. The effect of any condemnation, where the option to terminate is not exercised, will be to terminate this lease agreement as to the portion of the demised premises condemned, and the lease of the remainder of the demised premises shall remain intact SECTION TWENTY-TWO WAIVERS '.. Waiver by lessor of any breach of any covenant or duty of lessee under this lease is not a waiver of a breach of any other covenant or duty of lessee, or of any subsequent 7- LEASE AGREEMENT \ .... .t1j1-;[~";r:~."^-._;... breach of the same covenant or duty. SECTION TWENTY-THREE GOVERNING LAW It is agreed that this lease agreement shall be governed by, construed, and enforced in accordance with the laws ofthe State of Montana. SEL liON TWENTY-FOUR ENTIRE AGREEMENT This lease agreement shall constitute the entire agreement between the parties. Any prior understanding or representation of any kind preceding the date of this lease agreement shall not be binding upon either party except to the extent incorporated in this lease agreement. SECTION TWENTY -FIVE MODIFICATION OF AGREEl"IENT Any modification of this lease agreement or additional obligation assumed by either party in connection with this agreement shall be binding only if evidenced in writing signed by each party or an authorized representative of each party. SECTION TWENTY-SIX NOTICES A. All notices, demands. or other writings in this lease agreement provided to be given or made or sent, or which may be given or made or sent, by either party to the other, shall be deemed to have been fully give{l or made or sent when made in writing and deposited in the United States mail, registered and postage prepaid, and addressed as follows: TO LESSOR: The Town of Whitehall Attention: City Clerk City Ilall ., Whitehall. Mt. 59759 TO LESSEE: Jefferson CoUnty Library Board Jefferson County Courthouse Boulder, Mt. 59632 B. The address to which any notice, demand, or other writing may be given or 8-- LEASE AGREEMENT \ I,~':"-:-:-<'-:'-:-:-:-':-,;,,~::-~;;at;;;-;.;:;;~~,~;~,. made or sent to any party as above provided may be changed by written notice given by such party as above provided. SECTION TWENTY-SEVEN BINDING EFFECT This lease agreement shall bind and inure to the benefit of the respective parties and their successors, and assigns. SECTION TWENTY-EIGHT TIME OF THE ESSENCE It is specifically declared and agreed that time is of the essence of this lease agreement. SE'--I JON TWENTY-NINE PARAGRAPH HEADIl~~(iS The titles to the paragraphs of this lease agreement are solely for the convenience of the parties and shall not be used to explain, modify, simplify, or aid in the interpretation of the provisions. of this lease agreement. ~. 9-- LEASE AGREEMENT \ ~,,~~-~(:~~r'''~,<t~'- '''':''\~'_"",'' -,:~,.",","" C.C ' crc- _1v.-,;::",~,&1i[~r::; _ ....~~.... ~ .;.. _ ~.:,....-<"~,_",_~,,,,_.~ ,.l!lIJ rll!! __ . ~ In witness whereof, each party to this lease agreement has caused it to be executed on the date indicated below. Board of Trustees Jefferson Cpunty Library System ik ~~ ~ ~ -. ~~ l\l~ ~ ,- /? . &:4~/;7/~' /;fy~z- Secretary / / \ ~t: ~ ~ :\ ~ ~ ..,J ATTEST: 't 10--- LEASE AGREEMENT , [' . __JIIIIIJUI:..I III :., J[I. IIHI: nUDI_IliI,lUli_III..'1 1I1_llilill