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HomeMy WebLinkAbout1969-013 Lease - OSFLEASE .AGREEMENT, made this 29 day of AUGUST, 1969, by and between the CITY OF ASHLAND bY and through~e Common Council and the Ashla.nd Park Commission, hereinafter designated as the Lessor, and OREGON SHAKESPEREAN FESTIVAL ASSOCIATION (OSF), an Oregon cor- poration, hereinafter designated as the Lessee. WHEREAS, Lessor has obtained a grant of funds from the Economic Development A~hninistration of the Department of Commerce of the United States and Lessee has contributed certain real property to Lessor and, in addition thereto, will contribute funds equal in amount to such grant for the purpose of construction and expansion of Shakespearean Theatre facilities in the City of Ashland for the use and benefit of Lessor and Lessee, and W}tEREAS, it is in the interest of this community that during such periods that the OSFA Theatres are not required, or in use, by LesSee use of such facilities be granted to civic groups, conventions and such other organizations at such times and for such purposes as Lessor and Lessee may approve, n6w therefore: 1. TEP~I: The term of this Lease shall consist of the two periods unless sooner terminated as herein provided: property following (a) A period which shall begin on the date of the execution of this agreement and end on the date twenty-five (25) years thereafter. (b) A period which shall begin immediately after the expiration of the first period [(a) above] and end twenty-five (25) years thereafter, provided that I.essee shall give notice in writing to Lessor at least ninety (90) days prior to the expiration of the term above provided of Lessee's intention to continue this Lease for such additional period. 2. PROPERTY: Lessor does hereby lease to Lessee the real in Jackson County, Oregon, attached as Exhibit A, together Lease - Page 1 OSF Lease with all improvements thereon, whether in existence at this time or placed thereon during the term of this Lease or any renewal thereof together with all fixtures and equipment owned by Lessor and now or hereafter placed upon the premises which may be required or incident to use and operation of the facilities in the abovehdescribed premises by Lessee. 3. USE OF PREMISES: Lessee '~I1 hav~-~01e and exclusive possession and use of above-described premises, improvements, facilities and equipment thereon during the entire term of this lease for theatrical productions and for such other purposes as Lessee may by its present Corporate Charter be ,authorized to engage. It is understood and agreed that the Lessee shall grant to and encourage any civic groups, professional organizations or governmental agencies temporary use of the theatre portions of Such premises and facilities when such use will not interfere with the operation of the activities of the Lessee, provided however, that.the Lessee receives payment of a reasonable rental based upon the cost of maintenance, operation and services rendered or incurred by Lessee in connection w~th such use, and pro- vided that approval for such use b~ granted by a duly authorized agent of the Lessor. ,. 4. CONSIDERATION: Lessee has heretofore conveyed certain real proper~y to Lessor and has made available to Lessor substantial sums .in cash for the purpose of construction of facilities upon the leased premises and equipping the facilities thereon as consideration for this Agreement of Lease. 5. TITLE TO IMPROVEMENTS AND FIXTURES: Ail structures and improvements of whatever kind and nature erected upon or made to the ..... above describe~ properties by Lessee during the term Of this Le~se,' together with any and all additions, alterations and permanent fixtures now or hereafter installed upon such premises shall be the property of Lessor, except that Lessor shall have no ownership, title or interest in any machinery, equipment, appurtenances or fixtures hereinafter placed by Lessee 'in or upon such premises which is not actually so Lease - ~age 2 affixed as 6. to and alterations of the leased property, conditions: to become an integral part, of the buildings or facilities. ALTERATIONS: Lessee shall have the right to make changes subject to the following (a) Except as herein provided, Lessee may at Lessee's expense make such alterations, improvements, additions and changes to the lea~d pr~pe~t~f~itntay~deemn~essary or expedient in the operation of the leased properties, provided the Lessee, without the written consent of the Lessor, shall not tear down or materially demolish any of the improvements upon the leased property or make any material change or alter- ation in such improvements, which, when completed, would substantially diminish the value or substantially alter the use of the leased property. (b) No addition, change or alteration in excess of $15,000 to the exterior of any improvements shall be made without the written consent of the Lessor. Interior additions, changes or alterations may be made Without Safd-~o~sent so long as the basic purposes and use of said improvements are not changed and the value thereof is not depreciated. (c) At all times when any change or alteration is in progress, there shall be maintained, at the Lessee's expense, workmen's compensation insurance in accordance with law covering all persons employed in connection with the change or alteration, and general liability insurance for the mutual benefit of the Lessee and the Lessor expressly coverJ, ng the additional hazards due'to the change or alteration. 7. REPAIR AND MAINTENANCE: Lessee shall not cause or per~it any waste, damage or injury to the leased property. The Lessee, at its sole expense shall keep the leased property as now or hereafter constituted with all improvements made thereto and the adjoining sidewalks, Curbs, walls and landscaping clean and in good condition (reasonable wear and tear excepted) and shall make all repairs, Lease - Page 3 replacements and renewals, whether ordinary or extraordinary, seen or unforeseen, including all structural repairs, necessary to maintain the leased property. All repairs, replacements, and renewals shall be at least equal in quality of materials and workmanship to that originally existing in the leased property. The Lessor shall in no event be required to make any repair, alteration, or improvement to the leased property. Any~fix~ur~'~qulpment or materials rePlaced by the Lessee shall belong to the Lessee, and all proceeds from the disposition thereof may be retained by the Lessee. The Lessee shall indemnify the Lessor against all costs, expenses, liabilities, losses, damages, suits, claims and demands because of Lessee's failure to comply with the foregoing, and the Lessee shall not call upon the Lessor for any disbursement or outlay whatsoever in connection there- with, and hereby expressly releases and discharges the Lessor of and from all liability therefor. ~8.' UTILITIES: ~Lessee shall pay all charges for janitorial, garbage removal, gas electricity, light, heat, power, telephone and domestic water service used, rendered or s~p~liedYuP0n or in connection with the leased premises and the facilities thereon. The Ashland Park Commission agrees to supply irrigation water. 9. FIRE AND CASUALTY INSURANCE: Lessee covenants and'agrees to keep said premises insured against loss by fire with extended coverage endorsement, including risk of loss resulting from collapse of the structures, lightning, vandalis~ and ~alicious mischief. Such insurance policies shall amount equal to the full and properties insured. at all times.be maintained in force in and insurable replacement value of the premises It is a condition of payment of such insurance ...... Dzea~um$ b~ L~S~De_ that the p~pceeds~ 9f a~ny such i~nsurance shall be applied to the repairing or restoration of the property damaged whether the loss is Partial or total. The City of Ashland shall be named as an additional insured on such policy. 10. LIABILITY INSURANCE: Lessee shall procure, and during the term of this Lease shall continue in force the following policies of insurance at Les~ee's cost: Public liability and property damage Lease - Page 4 in a responsible company with limits of not less than $250,000.00 for injury to one person, $500,000.00 for injury to two or more persons in one occurrence, and $10,000.00 each occurrence for damage to property. Such insurance shall cover 'all risks arising directly or indirectly out of Les~ee's activities on or as a result of the condition of the leased premises and shall protect Lessor and Lessee against all cIaimS of third Pe~n~.~ ~ert~ifi~ates evidencing such insurance and bearing endorsements requiring thirty (30) days written notice to Lessor prior to any change or cancellation shall be furnished to Lessor. It is agreed that the Lessor shall not be liable to any third persons as a result of the use of said premises by the Lessee, its employees or agents, and the Lessee covenants and agrees to save the Lessor harmless from the claims of said third persons by reason of the use of said premises by the Lessee herein. 11. REAL PROPERTY TAXES: In the event any property herein subject to lease shall be assessed for property taxes, such taxes shall be paid by the Lessee on or before the 15th day of November of the taxable year. 12. DEFAULT OR BREACH: In the event the Lessee commits any default or breach of any of the .terms or conditions of this agreement and fails or neglects to correct the same within six (6) months after notice thereof by the Lessor herein, then and in such event, the Lessor shall have the right to immediately expel the Lessee from the premises herein and declare this lease terminated. In the event the Lessee fails to conduct the annual Shakespearean Festival for a period of three (3) years, except for war, catastrophe or other circumstances beyond the control of the Lessee, the Lessor shall have the right ~-~ ~--~o-.~ame~.~%e~LF termina~te this~Lease. Co~on Council By a Secre ;ary OREGON SHAKESPEAREAN FESTIVAL .A/S SOC IAT ION ~ Secretary-- - ~ EXHIBIT A Tracts A, B, C, D Beginning at the northwesterly corner of Lot 1 in Block 9 of the City of Ashland, Jackson County, Oregon, according to the official 1888 map of said city; thence, south 55° 18 east along the northeasterly line of said Lot 1 74.80 feet; thence, south 35° 28' west 108.70 feet~ thence, north 55° 18' west 8.36 f~et; thence, s~uth 3~'-0~~ west 61~60 feet; thence, north 55° 18' west 66.0 feet to the northwesterly line of said Lot 1; thence, north 35° 02' east along said line 170.30 feet to the point of beginning. Tract E: Beginning at a point which lies east 115.70 feet from the southeast corner of Lot 9 of Block No. 1 in the City of Ashland, Jackson County, Oregon; thence, continue east 19.0 feet to the southwest corner of Lot 1 of Block No. 2 in said City; 'thence, south 68° 30' east 23.16 feet; thence, east 30,89 feet; thence, north 21° 30' east 4.20 feet; thence, east 31.80 feet to the westerly line of Lot 3 of Block No. 2 in said City of Ashland; thence, south 21° 30'west 23.0 feet; thence, south . 56° 19' east 36.50 feet to a point on the north line of an alley 10 feet in width, thence, south 16° 15' we~t 10.40 feet to the south line of said alley; thence, south 56 19' east along said south line of alley 139.20 feet to the westerly line of South Pioneer Street in said City; thence, along said west line south 35O 0'2~ west 170.60 feet to an angle point; thence, continue along said westerly line of street south 29° 21' west 200.0 feet; thence, north 60° 39' west 83.0 feet; thence, north 29° 21' east along the westerly line of a walkway and a fence line 97.0 feet to a point which lies north 60° 39' west 83.0 feet from the westerly line of the aforesaid South Pioneer Street; said point being also 5 feet southerly from the southerly side of the concrete wall which surrounds the Shakespearean Amphitheater; thence, on a curved line in a northwesterly direCtion at a distance of 5 feet southwesterly from said wall a distance of 117.0 feet more or less to the most westerly projection of the Shakespearean Theatre building; thence, continue northerly on a curve which lies 10 feet westerly from the aforesaid wall 18 feet more or less to the southerly side of concrete steps leading from the rear of said theatre to the duck pond, thence, along said step line 31.0 feet to a point which lies south 21° 30' west 230.0 feet from the point of beginning; thence, north 21° 30' east 230.0 feet to the point o~ beginning. Tract F: Beginning at the intersection of the southerly line of ~ Street with the westerly line of First Avenue (formerly known as Hargadine Avenue) in the City of Ashland, Jackson County, Oregon; thence, south 35° 02' west, along the westerly line of said First Avenue, 100.0 feet to the northerly side-line of alley as described in Volume 56 page 150 of the Deed Records ~f Jackson CountY, Oregon; thence north 56° 19' west, along said line, 30.0 feet; thence north 35° 02' east 100.0 feet to the southerly line of said Main Street; thence south 56° 19'-east, along said line, 30.0 feet to the point of beginning. SUBJECT TO: 1. The right of access to the properties adjoining the alley from Pioneer Street along a portion of the northerly side of the above described Tract E. 2. The interest of the legal titleholders, William H. Briggs and Dorothy Briggs, husband and wife, to a portion of the above described Tract E over which said legal titleholders have granted to the City of Ashland a perpetual easement for land- scaping and walkway purposes. 3. Party wall rights, contained in instruments recorded in Volume 69 page 565 and Volume 77 page 2 of the Deed Records of Jackson County, Oregon. (Affects westerly line of Tract F.) 4. Restrictive conditions, set forth i~ deed dated Octobe~-2~,-i~96~ an~ ~b6r~e~0~e~ber 14, 1962, in Volume 536 page 336 of the Deed Records of Jackson County, Oregon (Affects Tract F.)