HomeMy WebLinkAboutC01-301 Real Property Lease with Berry Creek Equestrian Center10- 16 -01; 1:34PM;E.C. COMMISSIONERS
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This Real Property Lease ( "Lease ") is made and entered into effective November 1, 2001,
by and between County of Eagle, State of Colorado, a body corporate and politic, acting by and
through its Board of Commissioners ( "County" or "Lessor "), and Berry Creek Equestrian Center
Association, Inc., a Colorado Not - For -Profit corporation ("Lessee"),
RECITALS' ,
County owns that certain property in Eagle County, Colorado, described as the Berry Creek
PUD, Fifth Filing ( "Fifth Filing "). County acquired the Fifth Filing from Eagle County Recreation
Authority in 2000.
At the time of County's acquisition the Fifth Filing was subj ect to a lease between The Ranch
and the Eagle County Recreation ,Authority dated January 21, 1998, the term of which expired
September 30, 2000. That lease was for the operation of an equestrian center on a portion of the
Fifth Filing which included barns and improvements appropriate to that use and pasture lands. The
Fifth Filing has continued to be occupied on a holdover month -to -month tenancy.
TERMS & CONDITIONS
NOW THEREFORE, based upon the foregoing recitals and in further consideration of the
mutual promises set forth below, the parties agree:
1. Leased Premises.
County hereby leases to Lessee and Lessee hereby leases from County the Premises.
A. The Premises are:
i. Exclusive possession ofthatpart ofthe Fifth Filing approximately designated
as Parcel 1 on the map attached hereto as Exhibit A and incorporated herein.
County reserves the right to reconfigure Parcel 1, including reducing it in
size, after having provided Lessee with a thirty (30) day written notice to
vacate that portion to be otherwise utilized.
ii. Nonexclusive possession of that part of the Fifth Filing approximately
designated as Parcels 2, 3 and 4 on the map attached hereto as Exhibit "A"
and incorporated herein.. County reserves the right to enter onto these
nonexclusive - possession Premises to utilize them for other purposes after
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having provided Lessee with a thirty (30) day written notice to vacate that
portion to be otherwise utilized.
The Premises include various improvements typical of ranching, a rodeo arena, and two (2) mobile
homes owned by Lessor. Exhibit "A" represents only an approximation of boundaries of the Fifth
Filing and of its component parts.
B. The Lessee acknowledges:
i. That the Premises shall be transferred, per an agreement with the school
district and portions of the non - exclusive areas and their use maybe curtailed.
ii. That the leased Premises can be reduced with thirty (30) days notice to
approximately 23.7 acres as shown in the Master Plan.
iii. That the leased area will be subject to development activities,, including, but
not limited to school district building(s) and construction on the site and that
certain existing areas may be encroached upon.
iv. That the Lessee shall cooperate with the County to allow the County or its
agents to construct a road and other public improvements on the site.
C. Lessee accepts the Premises in their existing condition.
D. Lessee acknowledges that assets listed on Exhibit "B" are County owned.
2. Term.
The Initial Term of this Lease shall be seven (7) months, commencing November 1, 2001,
and continuing through May 31, 2002,
3. Rent.
The Rent shall be ten (10) dollars for the term of the Lease. The rent shall be payable at the
time of executing this Lease. The Rent shall be $100.00 per month, payable in advance, for all
extensions of the Term. The Rent shall be payable to Eagle County and delivered to the address as
listed in Paragraph 20, Notices, below.
4. Uses.
Lessee shall use the Premises as an equestrian center only, and will conduct no otherbusiness
on the Premises without the prior, written consent of Lessor. Equestrian center use means and
includes, but not limited to, horse boarding, horse riding lessons and clinics, food and beverage sales
for employees, boarders, lesson students, and merchandise sales relating to the equestrian center.
Permitted uses include special fund raisers directly related to use as an equestrian center.
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Activities that are not equestrian center operations are not permitted. They include, but are
not limited to: storage of mobile homes, storage of any trailers other than horse trailers or hay trailers
used in the equestrian center operations, storage of any equipment other than farm implements
(tractors, disks, manure spreaders, ATVs, hay trailers, etc.), storage of materials (such as landscaping
materials, boulders, timbers, firewood, building parts and materials, etc.). Prohibited equipment
includes, but is not limited to, any construction equipment other than construction equipment being
used for construction projects in progress on the Premises. All items presently located on the
Premises not permitted pursuant to this Section 4 must be removed within thirty (30) days of
execution of this Lease.
The Premises include two (2) mobile homes which may be used as residences and residence
facilities that may be used for living quarters for up to two (2) employees. No other residential use
is permitted on the Premises.
Lessee will not use or permit the Premises to be used for any purpose prohibited by the laws
of the United States or the State of Colorado or Eagle County.
Lessee acknowledges that the Fifth Filing is undergoing planning for development and use
in association with the contiguous parcel east of the Fifth Filing (combined, the "Miller Ranch/Berry
Creek 5th Filing "). Lessee further acknowledges that in the course of the planning or the
implementation of plans for the Miller Ranch/Berry Creek 5`h Filing, the component parcels of the
Premises will change in size and configuration, and some parts of the Premises will cease to be
available for lease hereunder. Lessee further acknowledges that a road is to be constructed and
utilities may be installed through the Miller Ranch/Berry Creek 5th Filing which will separate
portions of the Premises from the others. Construction of the road and/or utilities, and other
activities undertaken in the planning and implementation of development of the Miller Ranch/Berry
Creek 5th Filing, may inconvenience or obstruct the use of the Premises (including, but not limited
to, limiting or displacing ingress, egress, parking) for an equestrian center. Lessee accepts the
changes, inconvenience and obstruction which will occur and will make no claim against County on
account of them. The County shall provide notice of those County activities as described above
which restricts the operation of the Lessee.
5. Inspection.
The County shall have the right to enter the Premises for the purpose of inspecting them or
protecting the Premises and doing all things which the County may deem necessary for the protection
of the Premises, with or without notice, at any reasonable time.
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6. Alterations and Improvements.
Lessee, its subtenants and/or boarders shall make no alterations, additions or improvements
in or to the Premises without Lessor's prior, written consent. All such work shall be performed in
a good and workmanlike manner and shall be compatible in color, materials and design to other
improvements on the Premises.
Lessee shall pay or cause to be paid all costs for work done by or caused to be done by it in
or to the Premises, and Lessee shall keep the Premises free and clear of all mechanic's liens and
other liens on account of work done for Lessee or persons claiming under it. Should any liens be
filed or recorded against the Premises or any action affecting the title thereto be commenced, Lessee
immediately shall give Lessor written notice thereof, and shall thereafter cause such liens or claims
to be removed of record within five (5) days after the filing thereof. If Lessee wants to contest any
claim or lien it shall furnish Lessor with security satisfactory to it of at least one hundred fifty (150)
percent of the amount of the claim, plus estimated costs and interest. If a final judgment establishing
the validity or existence of any lien or claim for any amount is entered, Lessee shall pay and satisfy
the same at once.
Before the commencement of any work in or to the Premises by Lessee, Lessee shall notify
the Lessor, five (5) days in advance of the proposed work and the names and addresses of the persons
supplying labor and materials for the proposed work. During such work, Lessor and its agents shall
have the right to go upon and inspect the Premises at all reasonable times.
7. Permits.
Lessee shall obtain and maintain at its expense all licenses and permits required by any
government or other entity having jurisdiction with respect to any proposed alterations and
improvements and with respect to Lessee's use of the Premises.
8. Financial Reports.
Lessee shall provide monthly financial reports to Lessor consisting of a balance sheet and
income statement, prepared on an accrual basis in accordance with generally accepted accounting
principles and recognizing all non -cash transactions (trade -outs, barters, etc.). The financial reports
shall cover all activities conducted on the Premises. Monthly financial reports shall be submitted
by the last day of the month following the month being reported on.
Lessee shall provide Lessor a copy of its annual US income tax returns (for periods including
any period during which Lessee occupies the Premises) within thirty (30) days after they are filed.
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9. Utilities and Taxes.
Lessee shall be responsible for payment, when due, of all utilities, fees, licenses, and taxes
of whatever nature with respect to its use and occupancy of the Premises, provided that this does not
preclude Lessee from protesting the amount due in accordance with the lawful procedure for
asserting such a protest.
10. Maintenance and Repairs.
Lessee accepts the Premises as is, and agrees to take good care of the Premises, including the
fixtures and improvements therein, which it makes use of including, without limitation, all barns,
stables, trailers, irrigation ditches and the headgate which brings water onto the property. Lessee
shall, at its sole cost and expense, perform maintenance and make repairs, restorations or
replacements as and when needed, on the facilities which it makes use of, to preserve the Premises
and improvements thereon in good working order and consistent with the present condition and
normal wear and tear. Lessee shall immediately notify Lessor of any necessary capital improvements
that are required to properly preserve and maintain the Premises.
11. insurance and Bonds.
Lessee shall, at all times hereunder, maintain a comprehensive general liability, automobile
liability and property insurance coverages with limits of not less than $500,000.00 per person and
$1,000,000.00 per occurrence for bodily injury or death of any person or persons or damage to
property, naming the County as an additional insured. Lessee shall, at all times hereunder, maintain
workers' compensation insurance coverage as required by Colorado law. Lessee shall furnish the
County a certificate of all such insurance coverage, providing that the same may not be canceled or
materially changed or altered without first giving thirty (30) days prior written notice to the County.
Lessee shall not do anything on or about the Premises that is hazardous or that in any way
will violate, suspend or void any insurance coverage carried by the County upon the Premises.
Lessee shall require that any contractor who performs work for Lessee on the Premises will
furnish a good and sufficient performance bond in an amount not less than the full amount involved
in the contract as surety for the faithful performance of the contract by the contractor, and a bond
assuring payment of all persons performing labor and furnishing material in connection with the
work. Lessee shall also require the contractor to procure and maintain adequate contractors' general
public liability and property damage insurance and workmen's compensation insurance. Before the
commencement of any work, Lessee shall furnish the County with evidence that its contractor is
adequately covered as herein provided. If at any time during the performance of the contract the
surety on the contractor's bond(s) becomes defunct or otherwise irresponsible, the County shall have
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the right to require additional and sufficient sureties which the contractor shall famish within ten
(10) days after written demand therefor by the County.
12. Indemnity.
Lessee and its subtenants hereby agree to release, indemnify and save harmless the County,
its agents, employees, insurers, from and against any and all loss of, or damage to, property, or
injuries, to, or death of, any person or persons, including property and employees or agents, for which
the County would be held legally responsible, and shall defend,, indemnify, and save harmless the
County, its agents, employees and insurers, from any and all claims, damages, suits, costs including
attorney's fees, expense, liability, actions or proceedings of any kind or nature whatsoever, of or by
anyone whomsoever, in any way resulting from or arising out of, directly or indirectly, any act or
omission of Lessee in connection with its use or occupancy of the Premises, except for Licensee,
work performed by the County or its agents and employees which is contemplated hereunder, and
conduct by County or its agents and employees that is intentional or negligent.
13. Damal?e to the Premises.
In the event the Premises or any improvements thereon are damaged or destroyed by fire or
other calamity, and the County shall at that time determine the Premises or part thereof are obsolete
or otherwise should not be repaired or restored, the County shall have the option to terminate this
Lease by giving written notice of termination to Lessee within thirty (30) days of the destructive
event. If the County does not terminate this Lease, the Lease shall continue in full force and effect.
14. Third Parties.
This Lease does not, and shall not be deemed or construed to, confer upon or grant to any
third party or parties any benefit in this Lease, or any right to claim damages, defense, indemnity,
or property rights or to bring any suit, action, or other proceeding against the County because of its
execution or performance of the Lease.
15. No Assignment and Sublettins?.
Lessee shall not assign, convey, mortgage, hypothecate or encumber this Lease or any interest
herein, or sublet all or any part of the Premises, without the prior written consent of the County in
each instance, which consent may be granted or denied by the County in its sole discretion. Any
assignment or subletting, or attempt to assign or sublet, without the County's prior written consent
shall be void and shall confer no rights upon any third person.
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Any merger, dissolution, consolidation or other organization of Lessee, or any sale, transfer,
pledge or other disposition of corporate stock or voting securities of Berry Creek Equestrian Center
Association, Inc. which results in a change in the voting control of Lessee or involves ten (10)
percent or more of the voting securities of Lessee shall constitute an assignment requiring consent.
Any transfer, assignment or sale by operation of law and any involuntary assignment of this Lease
or any interest of Lessee hereunder or any interest of Lessee in the Premises also shall be deemed
a transfer subject to the provisions of this section.
16. End of Term.
Upon the expiration or other termination of the Term of this Lease, Lessee shall promptly
quit and surrender to the County the Premises, in good order, ordinary wear, present condition
excepted. If Lessee is not then in default hereunder, Lessee may remove from the Premises any trade
fixtures, equipment and movable furniture stored therein by The Ranch, whether or not such trade
fixtures or equipment are fastened to a building; provided, however, that under no circumstances
shall any trade fixture or equipment be removed without the County's written consent if such fixture
or equipment is used in the operation of the building or improvements or the removal of such fixture
or equipment will result in impairing the structural strength of the building or improvements.
Whether or not Lessee is in default hereunder, Lessee shall remove such alterations,
additions, improvements, trade fixtures, equipment and furniture as the County shall require, and
Lessee shall fully repair any damage occasioned by the removal of same. All trade fixtures,
equipment, furniture, inventory, effects, alterations, additions and improvements not removed shall
conclusively be deemed to have been abandoned and may be appropriated, sold, stored, destroyed,
or otherwise disposed by the County without notice to Lessee or any other person and without
obligation to account therefore; and Lessee shall pay the County for all expenses incurred in
connection with such property, including, but not limited to, the cost of repairing any damage to the
improvements on The Premises or the Premises caused by removal of such property. Lessee's
obligation to observe and perform this covenant shall survive the expiration or other termination of
this Lease.
17, Default.
The occurrence or existence of any one or more of the following shall constitute a material
default hereunder by Lessee:
a. If Lessee shall neglect or fail to perform or observe any of the covenants herein contained
on its part to be performed or observed, and Lessee shall fail to remedy such default within
ten (10) days after the County has given it written notice specifying such neglect or failure,
or within such period, if any, as may be reasonably required to cure such default if it is of
such a nature that it cannot be cured within such ten (10) days, provided Lessee commences
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to remedy such default within such ten (10) days and proceeds with reasonable diligence
thereafter to cure the default.
b. Lessee shall vacate or abandon the Premises, which includes, but is not limited to, any
absence by Lessee from the Premises for five (5) or more days; or locks the Premises or any
improvements thereon to prevent entry therein of the County as permitted by the terms hereof
during the operational season.
c. The Lease or the Premises or any part thereof shall be taken upon execution or by other
processes of law directed against Lessee, or shall be taken upon or subject to any attachment
at the instance of any creditor of or claimant against Lessee and such attachment shall not be
discharged or disposed of within fifteen (15) days after the levy thereof through no fault of
Lessee.
If Lessee shall default under this Lease, the County shall have the following rights and
remedies, in addition to all other remedies at law or equity, and none of the following, whether or
not exercised, shall preclude the exercise of any other right or remedy whether set forth in this Lease
or existing at law or equity:
a. Terminate this Lease by giving Lessee notice in writing at any time. If the County gives
such notice, this Lease and the Term hereof as well as the right, title and interest of Lessee
under this Lease shall wholly cease and expire in the same manner and with the same force
and effect (except as to Lessee's liabilities) on the date specified in such notice as if such
date were the expiration date of the Term of this Lease, without the necessity of reentry or
any other act on the County's part.
b. The County may without demand or notice reenter and take possession of the Premises
or any part thereof and repossess the same, and expel Lessee and those claiming through or
under, and remove the effects of any and all such persons, without being deemed guilty of
any manner of trespass. In no event shall Lessee be entitled to receive the excess, if any, of
rent collected by the County as a result of re- letting the Premises over the sums payable by
Lessee to the County hereunder.
18. No Implied Waiver.
The failure of the County to seek redress for violation of or to insist upon the strict
performance of, any covenant or condition of this Lease shall not prevent a subsequent act, which
would have originally constituted a violation, from having all the force and effect of an original
violation. No provision of this Lease shall be deemed to have been waived by the County unless
such waiver is in writing signed by the County.
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19. No Representations by the Counter Entire Agreement.
The County has made no representations, warranties, agreements or promises with respect
to the Premises except such as are expressed herein. The entire contract of the parties is contained
in this Lease and there are no promises, agreements, representations, warranties, conditions or
understandings, oral or written, between them other than as are set forth in this Lease.
20, Notices.
All notices required to be given to Lessee hereunder shall be given by US mail or other
mutually agreeable delivery service addressed to:
Berry Creek Equestrian Center Association, Inc.
Nancy Cole
P.O. Box 1813
Edwards, CO 81632
or by FAX addressed the same and transmitted to 970 - 926 -4965.
All notices and reports required to be given to the County hereunder shall be given by US
mail or other mutually agreeable delivery service addressed to:
County Attorney
Eagle County
P.O. Box 850
Eagle, CO 81631
and,
Facilities Management Director
Eagle County
P.O. Box 850
Eagle, CO 81631
or by FAX addressed the same and transmitted to 970 - 328 -8699 (County Attorney) and 328 -7720
(Facilities Management)
Notices also may be given by personal delivery to Nancy Cole or to the Eagle County
Attorney and Facilities Management Director.
Notices given by mail shall be deemed given the 3' business day after being deposited in the
US mails or other mutually agreeable delivery service. Notices delivered personally are deemed
given upon delivery. Notices given by FAX will be deemed given only if originals are mailed the
same or the next business day; such notices will be deemed given the business day next following
the date transmitted by FAX.
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21. Miscellaneous.
A. If any provision of this Lease shall prove to be illegal, invalid or unenforceable, the
remainder of this Lease shall not be affected thereby.
B. No amendment, alteration, modification or addition to this Lease shall be valid or
binding unless in writing and signed by both parties.
C. In the event of an approved assignment, the covenants, conditions and agreements
contained in this Lease shall bind and inure to the benefit of Lessee, and its
successors and assigns. The covenants, conditions and agreements contained in this
Lease shall bind and inure to the benefit of the county, and its successors and assigns.
D. Should either party bring suit to enforce this Lease, the prevailing party shall be
entitled to recover its costs, expenses and reasonable attorney's fees. A prevailing
party is a party that shall have obtained a final judgment or order no longer subject
to appeal; if there is none by this definition, each party shall bear its own costs,
expenses and attorney's fees.
E. Rates, charges and fees applied for services offered at the site must be set at levels
that are competitive in the market place. The County may require the Lessee to
demonstrate competitive pricing, and pricing will be reviewed annually to ensure that
this provision is met.
F. Lessee must set forth a market plan and effort to ensure that the maximum possible
return on services rendered is received.
G. Budgets must provide for paying direct wages and salaries of personnel involved in
management and operations of the boarding operations, the direct cost of operations
and an annual stipend to members of boards of directors.
H. Manure must be disposed of off -site, regularly, and in no case more than quarterly.
Lessee must comply with all state and local laws concerning manure disposal.
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IN WITNESS WHEREOF, the parties hereto have caused this Lease to be made effective the
day and year as first written above.
ATTEST:
COUNTY OF EAGLE, STATE OF
COLORADO, By and Through Its
BOARD OF COUNTY COMMISSIONERS
Clerk to the Board of
County Commissioners
BERRY CREEK EQUESTRIAN CENTER
ASSOCIATION, INC., a Colorado corporation
By. (°t
N n Cole, Pre dent /
l 0
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EXHIBIT "A"
;970 328 8629 # 13/ 14
' in- 18 -01; 1:34PM;E.C. COMMISSIONERS
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EXHIBIT "A"
a 10- 18 -01; 1:34PM;E.C. COMMISSIONERS ;970 328 8629 # 14/ 14
. Assets Lasting
Item 94 Price .,01 Price 1/2 Price
1
Ford 231 Tractor 73 or 78
3,650.00
3,650.00
2
Flatbed hay wagon
$350.00
$175.00
3
Small harrow
4
Lame harrow
$600.00
$300.00
5
Disc
$200.00
6
21 old white panels shelter ens
$300.00
7
Green 12' anels 10
8
Orange gate panels 9
$104.50
$108.90
$470.20
9
Green 8' panels X10
10
Green 6' panels 4
11
Orange 10' pasture gates 4
$61.80
$123,60
12
Green gates at office 2
$64.80
$64.80
13
Green gate sets outdoor arena 2
$64.80
$129.60
14
Green gates on hay barn 15' 2
$82.30
$82.30
15
15' oran a gate hay barn 1
$82.30
$41.15
16
8' oran a panels east side stalls 23
$40,00
$460.00
17
Oran 2e gate by CME 10'(1)
$61.80
$30.90
18
17 corner feeders
$1,050.00
$89.25
19
65 stall mats
$35.90
$1,166.75
20
29 flat back buckets
$7.82
$113.39
21
12 blue hay buckets
$9.25
$111.00
22
19 rings
$1.99
$19.00
23
2 wheel barrows
$44.00
$44.00
24
1 Rubbermaid wheel barrow
$158.00
$79.00
25
4 manure forks
$27.25
$34.50
26
3 Ig manure buckets
$19.99
$29.98
27
1 steel rake
$19.99
$10.00
28
358 T- posts
$1.71
$306.09
29
Electric fencing
$400.00
30
4 large rubber water tubs
$68.50
$137.00
31
22 large metal water tanks
$75.50
$830.50
32
3 motion sensor lights
$90.00
33
2 dusk to dawn lights
$22.96
$22.96
34
Red & white shelter pen
$2,100.00
$1,050.00
35
Brown & white shelter pen
$2,320.00
$1,160.00
36
Flourescent bulbs for indoor arena
37
1 roll smooth wire
38
20 wood saddle racks
$100.00
39
2 large metal hay bins (pasture)
$214.30
$214.30
40
Stakes
41
Water hoses
42
Extension cords outside
43
2 10' gates by Rodeo Ticket Booth
$64.8olf
$64.80
44
Gates by 4 -H Pasture
$64.80
$64.80
Totals
$9,177.75
$2 4W.21
'$8,514.87