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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 -1- 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. -2- 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. _3_ 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 w ~w