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HomeMy WebLinkAbout1997-112 Elevator Lease - OSF GRANT OF EASEMENT FOR ELEVATOR AND ELEVATOR LEASE Agreement made this d I ~ day of October 1997, between the Oregon Shakespeare Festival Association, an Oregon non-profit corporation ("OSF"), and the City of Ashland, Oregon ("City"). 017./, ~(~ Recitals: A. OSF is renovating the Pioneer Building located at 38-42 East Main Street, Ashland. The renovation includes the installation of a passenger elevator on city property to provide employee and public access to the upper floors of the Pioneer Building ("the elevator") . B. City desires use of the elevator to provide employee and public access to the upper floors of City Hall located at 20 East Main Street, Ashland. City and OSF agree: 1. Grant of Easement to OSF. City grants to OSF a perpetual easement for the construction, installation, use, operation, inspection, repair and maintenance of a passenger elevator described in paragraph 2 of this agreement on the property described on the attached Exhibit A. This grant of easement shall be binding upon, and shall inure to the benefit of, City and its successors and assigns and OSF and its successors and assigns. 2. Construction of elevator. OSF shall construct or cause to be constructed an elevator (described as Base Bid, Part B in the construction documents for the improvements to the Pioneer Building) with reasonable diligence according to plans and specifications approved by City. The elevator shall provide access to the upper floors to City Hall at such locations reasonably determined by City. Details of the elevator and any other improvements necessary to be constructed in conjunction with the elevator to provide access to City Hall are set forth in the attached Exhibit B. This elevator and other improvements are further referred to in this lease as lithe elevator work" or "elevator. II The plans and specifications will be reviewed and agreed upon by City and will be incorporated and made a part of this agreement. The elevator work shall be constructed under the direction of OSF and shall be erected in accordance with all state and local building laws, rules, and regulations. 2.1. The design and specifications for the elevator work shall be as reasonably requested by City and as reasonably agreed to by OSF. Upon receipt of all responsive bids, OSF shall consult with City and select the bidder mutually advantageous to both parties. 2.1 .1. The parties estimate that the cost of construction for the elevator work will not exceed $212,000 plus mutually agreed upon change orders. PAGE 1-ELEVATOR LEASE (p:agree\shake'e3.lse) Except for change orders which shall be paid as specifically provided in the next sentence, City shall pay to OSF an amount equal to 35 percent of the cost of the elevator work and OSF shall pay 65 percent of such cost. The cost for change orders shall be borne by the party benefitted by the change as mutually agreed by City and OSF. Payment by City of any amounts described in this paragraph shall be as provided in paragraph 4.1. For purposes of this agreement, the cost of construction for the elevator work shall include the following items: 2.1.1.1. All sums paid by OSF to the contractor pursuant to the construction contract for the elevator work, including any sums paid as a result of change orders and claims made by the contractor. 2.1.1.2. The costs of any permits, governmental fees, licenses, and inspections necessary for the proper completion of the elevator and other improvements covered by the plans and specifications. 2.1.1.3. Any other costs associated with the construction of the elevator and other improvements covered by the above mentioned plans and specifications, including materials, fees, labor, supervision, litigation expenses, claims, administration and all other necessary and incidental expenses. 2.1.2. During the course of construction it may be necessary to issue change orders. OSF shall have the right to negotiate change orders for the following items: 2.1.2.1. Changes which are necessary to meet requirements prescribed by State and local regulatory agencies in their normal course of implementing rules and regulations. 2.1.2.2. Changes necessary to correct defects in plans, specifications, shop drawings, submittals, materials and workmanship that affect the integrity of the building and other improvements described in the above referenced plans and specifications. 2.1.2.3. Changes which involve concealed conditions as defined in the general conditions of the construction contract. 2.1.2.4. Changes which are necessary to allow completion of the construction contract within the time specified in the construction contract. elevator. 2.1.2.5. Changes which are necessary to facilitate City's use of the Provided, however, OSF shall not approve change orders for the above referenced items without first obtaining the prior approval of the authorized representative of City, which approval shall not be unreasonably withheld. City PAGE 2-ELEVATOR LEASE (p:agree\shakele3.1sel shall designate one or more persons who shall be authorized to approve change orders on behalf of City. City shall notify OSF in writing of the identity of the persons so designated to represent City. At all times during the construction process at least one representative of City shall be available to review change orders without unreasonable delay. City shall have the right to contest by appropriate proceedings diligently conducted in good faith, in the name of the City, or OSF or both, without costs or expense to OSF, the validity of any claims for additional costs or claims for extension of time made by the contractor in accordance with the construction contract. 3. Term. This lease shall be effective between the parties unless terminated as provided in paragraph 12. 4. Initial and Rental Payments to OSF: 4.1. Initial payment. City shall pay to OSF the sum described in paragraph 2.1.1 as follows: As OSF is billed by the contractor for progress on construction of the elevator, City shall pay to OSF 35% of the amount of the progress payment specifically connected with contractor's elevator work. City shall make such payment within 30 days of the receipt of the statement. City's payments under this paragraph shall not exceed 35% of the sum specified in paragraph 2.1.1 unless City has approved change orders causing this sum to increase. 4.2. Rent payment. City shall pay OSF each year on or before the 15th day of February during the lease term the rental amount as determined in paragraph 4.3. 4.3. Rent Amount. Except as provided in paragraph 4.3.1, City shall pay rent to OSF annually on or before February 15 of each year as follows: 4.3.1. When the elevator has been put into operation, the parties shall estimate the operation, insurance, service agreement, repair and maintenance costs from such date until the following February. Within 30 days of the agreement of the parties as to the estimate, the City shall pay 50% of such amount to OSF as rent under this agreement. 4.3.2. Each January thereafter the parties shall meet and estimate the operation, insurance, repair and maintenance costs for the next twelve months and City shall pay 50% of such estimate to OSF as rent under this agreement. In any January if the parties determine that the actual costs for repair and maintenance during that January and the previous 11 months is less than the actual amount paid by the City then the difference shall be credited to City's next annual rent payment. If the amount is more, City shall add the difference to the next annual rent payment. PAGE 3-ELEVATOR LEASE (p:agree\shakele3.lse) 4.4. Rent Representations. Pursuant to ORS 307.112 and 307.166, the parties expressly agree that the rent payable by the City under this lease has been established to reflect the savings below market rent resulting from any tax-exemption OSF is entitled to and that the rent charged does not exceed the cost of repairs, maintenance, amortization and upkeep. 5. Use. OSF shall operate the elevator and shall supply elevator service to City, its officers, employees, invitees and the public 24 hours a day, seven days a week as determined by City. Access by City to the elevator under this agreement shall be controlled by City and City shall have the right to limit or expand access to the elevator at such times and days as City shall determine. OSF shall not be liable for any failure to supply service, occasioned by accident or other cause beyond OSF's control. 6. Utilities. OSF shall initiate, contract for, and obtain, in its name, all utility services required for operation and maintenance of the elevator, including gas, electricity, telephone, water, and sewer connections and services, and OSF shall pay all charges for those services as they become due. If OSF fails to pay the charges, City may elect to pay them and the charges will then be subtracted from the annual rental payment next due. 7. Ownership of Improvements. The elevator work shall be the property of OSF. The parties acknowledge that the elevator work is located on property owned by the City for which no rental will be required. 8. Maintenance. OSF shall furnish or shall cause to be furnished complete maintenance and repair on the elevator requiring those who service, maintain and repair the elevator to use trained and qualified personnel. Such personnel shall be qualified to keep the elevator properly adjusted and will use all reasonable care to maintain the elevator in proper and safe operating condition. If OSF fails to make such repairs or replacements, City shall have the right to make such repairs or replacements and subtract the charges for such from the annual rental payment next due. 9. Damage or Destruction. 9.1. Fire Insurance. OSF shall obtain and keep the elevator insured at OSF's expense against fire and other risk covered by a standard fire insurance policy with an endorsement for extended coverage including vandalism and malicious mischief. The amount of insurance shall not be less than 100% of the replacement value of the elevator and improvements. 9.2. Subrogation of Claims. Neither party shall be liable to the other (or the other's successors or assigns) for any loss or damage caused by fire or any of the risks enumerated in a standard fire insurance policy with an extended coverage endorsement and in the event of insured loss neither party's insurance company shall have a subrogated claim against the other. PAGE 4-ELEVATOR LEASE (p:agree\shake'e3.1sel 9.3. Proceeds and Repairs. If the improvements are damaged or destroyed by fire or any of the risks enumerated in the insurance policy required by this paragraph, the proceeds from the insurance shall be applied to repair or replace the elevator. Repairs shall be accomplished by OSF with all reasonable dispatch subject to interruptions and delays from labor disputes and matters beyond the control of OSF. Nothing contained in this provision is intended to excuse OSF's duty to repair pursuant to paragraph 8. 10. Indemnification and Insurance. 10.1 Liability from use. City shall be solely responsible for any loss or injury caused to third parties arising from City's acts or omissions under this agreement, and OSF shall be solely responsible for any loss or injury caused to third parties arising from OSF's acts or omissions under this agreement. City shall hold harmless and indemnify OSF with respect to any claim, litigation or liability arising from City's own acts or omissions under this agreement and OSF shall hold harmless and indemnify City with respect to any claim, litigation or liability arising from OSF's own acts or omissions under this agreement. 10.2 Liability Insurance. 10.2.1. City shall, at its own expense, at all times during the term of this lease, maintain in force a comprehensive general liability policy including coverage for contractual liability for obligations assumed under this lease. The liability under each policy shall be a minimum of $500,000 per occurrence (combined single limit for bodily injury and property damage claims) or $500,000 per occurrence for bodily injury and $100,000 per occurrence for property damage. OSF shall, at its own expense, at all times during the term of this lease, maintain in force a comprehensive general liability policy including coverage for contractual liability for obligations assumed under this lease. The liability under each policy shall be a minimum of $500,000 per occurrence (combined single limit for bodily injury and property damage claims) or $500,000 per occurrence for bodily injury and $100,000 per occurrence for property damage. 10.2.2. Certificates of insurance acceptable to OSF shall be filed with OSF prior to the use of the elevator by City under this lease. Certificates of insurance acceptable to City shall be filed with City prior to the use of the elevator by OSF. These certificates shall contain provision that coverages afforded under the policies can not be cancelled and restrictive modifications cannot be made until at least 30 days prior written notice has been given to OSF. A certificate which states merely that the issuing company "will endeavor to mail" written notice is unacceptable. PAGE 5-ELEVATOR LEASE (p:agree\shakele3.1sel 10.2.3. OSF shall be added as an additional named insured to the City's policy regarding claims arising under this lease and in like manner the City of Ashland shall be added as an additional named insured to OSF's policy. 10.2.4. Should City fail to keep in effect and pay for insurance as required by this paragraph, OSF may do so, in which event the insurance premiums paid by OSF shall become due and payable forthwith and the failure of City to pay the same on demand shall constitute a breach of this lease. Should OSF fail to keep in effect and pay for insurance as required by this paragraph, City may do so, in which event the insurance premiums paid by City shall become due and payable forthwith and the failure of OSF to pay the same on demand shall constitute a breach of this lease. 11. Default. For any and all purposes arising pursuant to this lease, the following shall constitute an event of default: 11.1. Rent Delinquency. Failure of City to pay any rent or other charge within 15 days after written notice that it is due. 11.2. Noncompliance. Failure of either party to comply with any term or condition or fulfill any obligation of this lease (other than the payment of rent or other charges within fifteen days) shall constitute a default 30 days after written notice by the party claiming non-compliance specifying the nature of the non-compliance with reasonable particularity. If the non-compliance is of such a nature that it cannot be completely remedied within the thirty-day period, this provision shall be complied with if the non-complying party begins correction of the non-compliance within the thirty-day period and thereafter proceeds with reasonable diligence and in good faith to effect the remedy as soon as practicable. 11.3. Liens. Failure to remove any lien or encumbrance placed upon the elevator suffered by or through the act of either party shall constitute a default 30 days after written notice thereof by the party asserting violation of this paragraph to the non- complying party, except that either party may in good faith object, on behalf of the other party or itself, to the validity or amount of any lien and may contest the validity or amount of the lien. 12. Remedies. 12.1. If any default by City shall continue substantially uncured following notice of default as required under this lease or if no notice is required and City is in default, OSF shall have the following remedy in addition to other equitable or legal rights and remedies: OSF may terminate the lease on giving written notice of termination to City. Without such notice, re-entry will not terminate the lease. On termination OSF may recover from City all damages proximately resulting from the breach, including the cost of recovering the premises and the worth of the balance of this lease over the PAGE 6-ELEVATOR LEASE (p;agree\shakele3.1sel reasonable rental value of the premises for the remainder of the lease term, which sum shall be immediately due OSF from City. 12.2. If any default by OSF shall continue substantially uncured following notice of default as required under this lease or if no notice is required and OSF is in default, City shall have the following remedies in addition to other equitable or legal rights and remedies: City may require specific performance of OSF of its duties and obligations under this lease or City may terminate the lease on giving written notice of termination to OSF. On termination City may recover from OSF all damages proximately resulting from the breach. 13. Successor Interests. All the covenants, agreements, conditions and terms contained in this lease shall be binding upon, apply and inure to the benefit of the heirs, executors, administrators and assigns respectively of the OSF and the City and all of such covenants shall be construed as covenants running with the land. 14. Notices. All notices required or permitted to be given under this agreement shall be in writing and shall be deemed given and received two days after deposit in the United States mail, certified or registered form, postage prepaid, return receipt requested, addressed as follows: To OSF: Paul Nicholson, Executive Director OSF 15 South Pioneer Street Ashland, OR 97520 To City: City Administrator 20 East Main Street Ashland, Oregon 97520 Notice given in any other manner shall be effective when it is received by the party for whom it is intended. Either party may change its address by giving ten days' advance notice to the other party. 15. Entire Agreement. This agreement contains the final and entire understanding between OSF and City with respect to its subject matter and is intended to be an integration of all prior negotiations and understandings. OSF and City shall not be bound by any terms, conditions, statements, warranties, or representations not PAGE 7-ELEVATOR LEASE (p:agree\shakele3.lsel contained in this agreement. No change or modification of this Agreement shall be valid unless it is in writing and is signed by both OSF and City. Oregon Shakespeare Festival Association ~~I~~~ City of Ashland By Its --I BY~/~ ),Adc<CL___. atherine M. Golden, Mayor - ~ By B rbara Christensen, City Recorder PAGE 8-ELEVATOR LEASE (p;agree\shakele3.1sel E.x:h..i.b.i.t · A. LAN D DES C RIP T ION Commencing at the centerline terminus of Winburn Way, as retraced, from which the One Quarter corner common to Sections 8 and 9, Township 39 South, Range 1 East of the Willamette Base and Meridian, Jackson County, Oregon bears South 23 degrees 40 minutes 00 seconds West for a distance of 1597.51 feet; a lead slug with round brass tag marked LS 759 in top of concrete curb bears South 53 degrees 32 minutes 47 seconds East for a distance of 31.375 feet and the Southeast corner of Lot 9, Block 1 according to the official map of the City of Ashland dated Nov. 5, 1888 bears North 00 degrees 05 minutes 19 seconds East for a distance of 20.1 feet, more or less; THENCE North 77 degrees 54 minutes 10 seconds East for a distance of 144.58 feet to the TRUE POINT OF BEGINNING: THENCE North 69 degrees 52 minutes 22 seconds West for a distance of 12.83 feet to a point; THENCE North 20 degrees 15 minutes 08 seconds East for a distance of 10.6 feet, more or less, to the outside wall of an existing building; THENCE South 69 degrees 52 minutes 22 seconds East along the face of said building wall, for a distance of 12.83 feet to a point which bears North 20 degrees 15 minutes 08 seconds East from the true point of beginning; THENCE leaving the face of said existing building wall, South 20 degrees 15 minutes 08 seconds West for a distance of 10.6 feet, more or less, to the true point of beginning. 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