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2008-0715 Documents Submitted at Meeting
City of Ashland Legal Department Memorandum To: City Council Megan Thornton, Assistant City Attorney July 15, 2008 Gun Club Lease From: Date: Re: Background The City received comments from councilors and legal counsel on Monday, July 14, 2008, and Tuesday, July 15, 2008. The legal department has reviewed those recommendations and would like to suggest changes based on the comments received. Suggested Modifications to Draft Lease Staff suggests the following changes be made to the lease: 1. Who is responsible for the cost of the environmental clean-up and what are the timelines associated with the clean-up? · Recommendation: amend 4.3 as follows: Section 4.3. Hazardous Substances. Lessee may use or otherwise handle only those Hazardous Substances typically used or handled in the prudent and safe operation of the use specified in Section 4.1. Lessee shall refrain from causing Hazardous Substances, other than lead, to be spilled, leaked, disposed of, or otherwise released on or under the Property. Lessee may store such Hazardous Substances on the Property only in quantities necessary to satisfy Lessee's reasonably anticipated needs. Lessee shall comply with all Environmental Laws and exercise the highest degree of care in the use, handling, and storage of Hazardous Substances and shall take all practicable measures to minimize the quantity and toxicity of Hazardous Substances used, handled, or stored on the Property. Lessee shall comply with the Environmental Protection Agency's current version of the Best Management Practices for Lead at Outdoor Shooting Ranges (EPA's Best Practices) to minimize and manage lead contamination of the Premises. Lessee shall begin an initial lead removal operation on the Premises within the first eighteen (18) months of lease signing. Lessee shall comDlv with the tenns and timelines of an mana ement Ian develo as a result of the environmental assessment in Section 4.5 and consistent with the EPA's Best Practices. On the expiration or termination of this Agreement, Lessee shall remove all lead from the Property that exceeds oennissible levels at its own eXDense. Beginning in 2019, Lessor shall have the right to require Lessee to post financial security for environmental clean-up of the site related to the Gun Club's use as a condition of an extension under Section 2.3. Each year an extension is granted Grantee may be required to post at least a proportion of the total amount deemed necessary to perform lead removal on the site. The amount and the form of the financial security must be approved by the Director of Public Works and City Attorney. It is the intention of the Lessor and Lessee that grants and other environmental remediation programs during the term of the Agreement will make posting financial security unnecessary. Page 1 of4 and $250,000 per occurrence for property damage. Such insurance shall cover all risks arising directly or indirectly out of Lessee's activities on the Property or any condition of the Property. Such insurance shall name Lessor as an additional insured. Certificates evidencing such insurance and bearing endorsements requiring 10 days written notice to Lessor before any change or cancellation of the policy shall be fumished to Lessor before Lessee's occupancy of the property. 5. Indemnification should survive termination of the lease. · Recommendation: amend 7.2 as follows Section 7.2. Indemnification. To the fullest extent permitted by law, Lessee shall indemnify, defend, and hold Lessor harmless from, and reimburse Lessor for, any cost claim, loss, Bodily Injury (including injury resulting in death), or liability that is suffered directly or from a third-party claim arising out of, or related to: 1) any activity of Lessee, or any agent, contractor, servant, invitee, licensee or employee of Lessee on the Property, 2) any condition of the Property in the possession or under the control of Lessee, 3) an act or omission of Lessee or any agent, contractor, servant, invitee, licensee or employee of Lessee, or 4) any failure by Lessee to perform all of its obligations under environmental laws, including any failure to perform during Lessee's previous occupation of the Property, or 5) any breach by Lessee under this Agreement. Lessor shall have no liability to Lessee for any injury, loss, or damage caused by third parties, or by any condition of the Property. This obligation to indemnify shall survive tennination of the lease and include reasonable attomeys' fees, includina attorneys' fees on apoeal. and investigation costs and all other reasonable costs, expenses and liabilities incurred by Lessor or its attorney from the first notice that any claim or demand is to be made or may be made. In case that an action or proceeding is brought against Lessor because of such claim, Lessee, upon notice from Lessor, agrees to defend such action or Proceeding by hiring counsel reasonably satisfactory to Lessor. 6. The City should be able to receive damages for clean-up costs if the lease is terminated. · Recommendation: amend 12.2 as follows: Section 12.2. Damages. In the event of termination or retaking of possession following default, Lessor shall be entitled to recover immediately, without waiting until the due date of any future rent or until the date fixed for expiration of the lease term, the following amounts as damages: (1) The loss of rent from the date of default until a new Lessee is, or with the exercise of reasonable efforts could have been, secured for the Property. (2) The reasonable costs of reentry and re-lelting including without limitation the cost of any cleanup, refurbishing, removal of Lessee's property and fixtures, costs incurred, or any other expense occasioned by Lessee's default including but not limited to, costs of environmental studies. assessments. and clean-up associated with the remediation of lead on the Prooertv. any remodeling or repair costs, attomey fees, court costs, broker commissions, and advertising costs. 7. The Property should be retumed to the City free of all environmental contaminants. · Recommendation: amend 12.3 as follows: Section 12.3. Condition of Property. (1) On expiration of the lease term, or earlier termination on account of default, Lessee shall deliver all keys to Lessor and surrender the Property free from all lead and lead contamination in excess of oennissible levels at its own exoense. surreneer the Proper1}' free from lead or le3d conbmiAation in 36 good of cOAeitioA 36 '!meA reGei~.'{)d OA the E#eGt~ D-;io. Alterations constructed by Lessee with permission from Lessor shall not be removed or restored to the original condition unless the terms of permission for the Alteration so allow. Depreciation and wear from ordinary use for the purpose for which the Property is leased shall be excepted, but repairs for which Lessee is responsible shall be completed to the latest practical date before such surrender. (2) All Alterations, improvements and fixtures placed on the Premises during the lease term, other than Lessee's trade fixtures, shall be removed in accordance with Section 6.2. If Lessee fails to remove such fixtures, Lessor may do so and charge the cost to Lessee with interest at the legal rate from the date of expenditure. . Page 3 ~\~ ~ ~ ~ } ~ ;J '2 = a f'I) ~ ~ ~ :;z-> I>> ::r ~ _0 :;'d Ii) tl) C .., > iJQ J& ~ a::r ;;. t) 2lI:l ;- """l ::s .... r.;. Q. f"l> I>> -. c.. ::I a ~ .., i ~ !!...,fD -. _ .., n _." (JQ' ~ !. ~ :::I = t'D ~ ::I ::s lit) c..~c.e r- -. ~ ;: -.a- ~::I::r -.= ~ ~::s::: S'~ ;-;:~ ...._0 r.acc ::rQ.::I ;;. ~ ~. ...... ... - o r.a = ::!. c.. ft) ~:~a Q..::;-tDO" ~ ~ :;.~ ~. n ~ fofJ cO' ~c.. ::I f"l> (JQ;" -~ ::r_ t'D ::r -.tl) a ., "CtD I>> :::I t') fb -~ o lit) ~- -0 ~~ c..:;. o tD ::I > "C - folD goo ~=: ::I _I>> tD 1>>::1 ::I c.. Q.. .. CO} ~ c: I>> ::I -"" tD '.. .., - .. C 0" 0" :;. (#).. Q.. - ~ ." 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'oJ ~ ~ ~.. 3 ::s ~ Q. ~ - ~ ~ r" t'l) ~ 5: Q.. ~ F Vl .., 2.- -- *' z c ~ ~ :: ~ ..... e. ~ :;. - ~ ~ ~ ~ ;.~, 3 0 ~ ~ ., ~ ~. ~ ~ ~ (JQ Q. ::s ::r ~ ~ 0 ., :: ..... ~Q.~ ~ ~ :: :' ~ ~ ..0 ~ ~ :: ~ "- .....Q..,::s" C t""'" e. ;- ~ ~. =- = ::s"~Q. _, :: -AI ~ ~ ~ ~ :;. ~ ~ 0 ~ ..... :: ~ ~ 3 ~ ~ ~ ;. :T~~ -. ~ ~-~ o ~ -, ., ......~ -, C ~~Q.~ Q. ~,~ 0 ~ ;- ~' ; ~~Q.") ~ 0_ ~ 3 -, ~ ~;. c ~ ,... - =:~ :: ..... ~ 0 ...... ~ ::r ...... ~ 0 _, "0 3 ...... "0 ::s" ~ ~ ~ ., ...... ~ _ ::s ~~ -~ ~ ,,- ~ :.. Q.o o ~ :: ;. ;.~ ~ >> ~ ~ ::s" :: :r .?-:: ~ Q. ~C"'J ~ C ., ::s ~~ :;' C Q.a- ~ ~-AI 5.ti' ~ ~ ~ c:: f;\ S ~ (> ~' l" l' f' ( '\/'\ ~ <:> ..J\ I~ ~ ~ i- ~ ~ ~ ,~ ~ r. ~ ~ ("lJ " I~ I~ ~ ~ VI, , I ~ 0) lAI z ~ :3 ~ "0 ::s" o ::s ~ ~ 3 ~ -- ~ Q. ~ ~ ., a. -- ~ Tom Kennedy From: Sent: To: Cc: Subject: Tom Kennedy Monday, July 14,20084:47 PM comment_to _the _ council@list.ashland.or.us Tom Kennedy Ashland Gun Club Lease Hello Council members: I am Tom Kennedy, an Ashland resident of many years. I did send a letter to the City Manager's office late last year citing my pleasant experiences using the Gun Club premises, The memories include teaching my family, wife, children, and grandchildren the does and don'ts of owning and shooting a gun. I enjoyed watching the Boy Scouts learning the procedures of safety and accuracy. I am proud to watch the military practice and marvel at the young age some of their sharp shooters are, The premises is kept very clean, due to many volunteers and their proud relationship with the Gun Club. The buildings maintenance is in perpetual movement and always ahead of deterioration, I think the knowledge and use of a fire arms is a good protection against those who desire to protect themselves and their property. I think it is a community benefit to offer the most exposure to measures that will assist in protection of person and property. Thank you for your time, Tom Kennedy 1 ~ mVJ;z-cJ oj 1 It dr% ~fleiJ ~ Request of the City Council: By: Allan Sandler 1260 Prospect St. Ashland, Or. 97520 Phone 5414821781 Fax 5414882263 e-mail allanI23rj@aol.com July 15, 2008 Because of all the talk about trying to find funding for affordable housing, I am here tonight to give the City of Ashland a chance to have true affordable housing as it has so often asked for. I would like the City Council to ask staff to put in about two hours of their time to go over the following plan with me and submit their opinions back to the Council. # 1.. Lease the air space over the small Lithia parking lot to me or another developer for $1 /year for 99 years. #2...The lease will have a deed restriction to the air space that will allow for 10 one and two bedroom affordable housing units to fully conform to the existing affordable housing restraints of the City of Ashland. #3...The units can only be financed with private funds and may not use any existing funding from any government agency as not to take funding away from non profit organizations. #4...The ground floor or street level will remain the property of the City of Ashland and the existing parking spaces will not be reduced because of construction of above ground development of the air space. The parking lot will be maintained by the City of Ashland as it now does. #5...Ifthe ground floor is either leased or sold by the City of Ashland it will give the leaseholder of the air space the right of first refusal to match the city position for 30 days. If it was acceptable to the City Council I would like to discuss the possibility of my developing the ground floor eliminating the parking lot in favor of building an affordable commercial service to act as a child care and elder care facility to cater to the parents and care givers to the aged. This facility would be negotiated with the City of Ashland to give low cost services to a similar group and similar standards as will be given to people leasing out the affordable housing units on the space above the parking lot. This does not mean the facility would be only available to the tenants of the units under construction but to any qualified user of the facility. #6... This lease will be a single source agreement with the City of Ashland. In order to avoid any criticism of the City, the City if it wishes my offer what ever final negations it has made with me to the open market and if any other developer or organization comes forth I will back off if the City would rather work with another developer and let that entity go forward with the project. The only stipulation is that no part of the agreement negotiated with me would be changed for a new developer. It will be an effort to get affordable housing for the City of Ashland either by me or some one else without all the red tape and process of the past. Please note that one requirement is that the developer can prove it has the money available to do the project prior to signing the lease #7...0nce the lease is signed the process of construction will go through the normal procedure through the various City commissions and departments and hearings for building approval as is normally done when a project is submitted for development. #8...The above is meant as a format to start negotiations with the City Council of Ashland and that nothing will be considered an agreement until all documents are signed by all the parties involved. As a matter of fact when the building project over the parking which was originally created by me, this facility was $1,000,000 now it has been budgeted at about be about $1,500,000. Lets not wait to much longer before we have true affordable rentals in the downtown area.