HomeMy WebLinkAbout1963-013 Lease - McGrew Bros Sawmill
1 ♦ • 1 , 1 1 A (RE EME NT OF LEA SE
THIS AGREEMENT, made and entered into in triplicate at
Ashland, Oregon, this ay of Few 1963, by and between
the CITY OF ASHLAND, a municipal corporation of the State of
Oregon, hereinafter known and designated as the Lessor, and
Mc GREW BROS. SAWMILL, INC., a corporation of the State of Oregon,
hereinafter known and designated as the Lessee,
WITNESSETH:
I.
The Lessor, in consideration of the rental to be paid and
covenants to be performed by the Lessee as hereinafter recited,
does hereby lease and let unto the Lessee for a period of twenty
(20) years beginning February 1, 1963, all the following described
real property situated in Jackson County, Oregon, to-wit:
Beginning at the Northwest corner of Government Lot 4
in Township 39 South, Range 1 East of the Willamette
Meridian in Jackson County, Oregon- thence South 251.0
feet; thence North 560 13' West 158.4 feet to the
West line of the Southeast Quarter of Section 14;
thence North along said West line 474.0 feet; thence
East 1120.0 feet; thence North 455.0 feet to an inter-
section with the Southerly line of the Southern Pacific
Railroad right-of-way= thence Southerly along said
right-of-way line 1850.0 feet to a point due East of
the point of beginning; thence West 231.0 feet to the
point of beginning.
SUBJECT TO:
1. A 40 foot road from adjoining city property
leased to Thomas J. Parker & Associates, Inc.,
Pacesetter Homes, Inc., the Oregon State Forest
Service and Ashland Wranglers, Inc. to Highway 99.
2. An easement to the City of Ashland for water
pipeline purposes.
II .
The Lessee agrees to pay as rental for the use of said
premises the sum of Fifty and no/100 ($50.00) Dollars per year,
payable in the sum of Fifty and no/100 ($50.00) Dollars cash at
the time of the execution of this lease, receipt of said first
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year's rental being hereby acknowledged, and Fifty and no/100
($50.00) Dollars on the lst day of February of each year through-
out the time this lease is in force.
III.
The Lessee covenants and agrees to operate said premises
as a sawmill and/or planing mill, or for lumber manufacturing or
drying operations, and agrees to run through said sawmill and/or
planing mill or dry kiln, not less than two and one-half million
(2,500,000) feet of lumber each year. The failure to run through
said amount of lumber, not due to war, act of Cod, or government
order, shall give the Lessor the option and right to declare a
forfeiture of the within lease, and all rights of Lessee shall
immediately cease and terminate at the option o.z the Lessor,
except that the Lessee shall have the right to curtail or dis-
continue said operations during three (3) years of the lease term
provided that the years are not consecutive.
IV.
Upon any termination of this lease, Lessee agrees that the
land herein leased shall be immediately surrendered, all buildings
and other improvements thereon shall be removed at the request of
the Common Council of the City of Ashland, and said premises shall
be cleaned up and left in as good a condition as they were before
said buildings and improvements were placed on said premises. In
the event Lessee, its successors or assigns, should fail, neglect
or refuse to remove said buildings or improvements when requested
by the said Common Council or Lessor, for a period of ninety (90)
days after delivery of a written request for said removal, then
and in that event said buildings and improvements shall be deemed
abandoned by Lessee and shall be deemed a part of the real property
of Lessor, free and clear of all claims of Lessee.
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V.
The Lessor assumes no responsibility or liability on account
of any complaints by adjacent property owners by reason of noise,
smoke, or other claims or complaints which might arise by virtue
of the operation of said sawmill and/or planing mill or dry kiln.
VI.
The Lessee agrees that all shavings and sawdust from said
lumber manufacturing plant shall be properly burned in accordance
with the requirements of the law in such matters; provided, however,
that said Lessor shall have the privilege of using such sawdust or
shavings as requested by it by removing the same from the pile at
the plant.
VII.
This lease may not be assigned, nor may any portion of the
within described premises be sublet by Lessee without the express
written consent of Lessor.
VIII.
Upon expiration of this lease or on failure to.pay the rent
within ten (10) days after the same is due or on the failure to
comply with any of the conditions of this lease within ten (10)
days after written notice thereof, time being of the essence, the
Lessor, at its option, may terminate the same without notice and
may re-enter and take possession of said premises.and expel the
occupants thereof without in anywise being trespasser; the failure
to take possession at the time as stated aforesaid shall not,
however, estop Lessor from afterward asserting its right. Such
remedy, however, shall be cumulative and not exclusive.
DC.
It is agreed and understood that the Lessee shall pay any
real property taxes assessed against the property by reason of
this lease.
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X.
The Lessor does hereby give and grant unto Lessee the first
right and option to a renewal of this lease on as favorable terms
as are offered to any other person or persons, provided the Lessee
shall have notified the Lessor in writing of its desire for an
extension of this lease, such notification to be made at least
six (6) months prior to the termination hereof.
XI.
Lessor understands that Lessee is purchasing certain real
and personal property from Mistletoe Wholesale Co., Inc., an Oregon
corporation, which property is being purchased with a down payment
and a note and mortgages from Lessee to Mistletoe Wholesale Co.,
Inc . , for the balance of the purchase price.
Lessor agrees that if Lessee shall default in the performance
of the terms and conditions of said promissory note, real and chattel
mortgage, that said Mistletoe Wholesale Co., Inc., at its option,
may take over the performance of this lease in the place and stead
of Lessee.
In the event of the default of Lessee in its performance of
said note, chattel and real mortgages, Lessee authorizes and directs
Lessor to treat said Mistletoe Wholesale Co., Inc., as Lessee here-
under, if said Mistletoe Wholesale Co., Inc., elects to take over
the performance of this lease. Should default occur in the perfor-
mance of this lease by Lessee and should Mistletoe Wholesale Co.,
Inc., elect to take over the performance of this lease, it shall
give to Lessor and Lessee not less than ten (10) days notice in
writing of its intention so to do and during such period Lessee
shall have the right to remove any default in this lease and reinstate
the same. Said notice shall be sent by certified United States mail
in the case of Lessor to the city recorder with a copy to the mayor
of Lessor and in the case of Lessee to P. 0. Box 1429, Medford,
Oregon, with a copy to Robert Heffernan, P. 0. Box 487, Medford,
Oregon.
Lessor agrees in the event Lessee defaults in the performance
of this lease to give written notice by certified United States
mail to Mistletoe Wholesale Co., Inc., at P. 0. Box 255, Ashland,
Oregon, with a copy thereof to Otto J. Frohnmayer, Cooley Theatre
Building, Medford, Oregon.
IN WITNESS WHEREOF, the parties hereto have hereunto set
their hands and seals on the date in this agreement first written.
CITY OF ASHLAND
Attest:
•~e- By
ecorder Mayor
Lessor
Mc GREW BR OS . SAWMILL, INC.
etar President
Lessee
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