Real Estate Lease (330 S Ohio) REAL ESTATE LEASE
This Real Estate Lease ("Lease") is made this V day of , 2015, between
The City of Salina, Kansas ("Lessor"), and Chase M. Fry and amantha Elsasser,
("Lessees").
Section 1 - Premises. Lessor is under contract to purchase from Dennis M. Fry the real property
and buildings located at 330 S. Ohio, Salina, Kansas ("Premises"). Lessees currently reside at
the Premises. The Lessees' current tenancy of the Premises, whether or not under a written lease
from Dennis M. Fry, shall terminate upon the closing of Lessor's purchase of the Premises from
Dennis M. Fry. Lessor shall then lease the Premises to Lessees pursuant the terms and conditions
contained herein.
Section 2 - Rent. Lessees shall pay no rental payment to Lessor for the Lease.
Section 3 - Term. This Lease shall commence upon the closing of Lessor's purchase of the
Premises from Dennis M. Fry and terminate on July 28, 2015 ("Term"). Upon expiration of the
Term, the Lease shall terminate, and the Lessor may immediately take possession of the
Premises. In partial consideration of the rent-free lease, the Lessees acknowledge and agree that
if they are able to relocate sooner than July 28, 2015, they shall so notify the Lessor and
relinquish possession at such time as the circumstances allow.
Section 4 - Maintenance. With regard to the maintenance, repair, and upkeep of the Premises,
the parties agree as follows:
(a) Exterior. Lessees shall keep the foundation, exterior walls, windows, and the roof
of the Premises in good repair. With regard to maintenance of the grounds in and around the
Premises, Lessees shall have the obligation to (1) remove all snow and ice from the Premises, (2)
provide tree and landscaping maintenance on the Premises, (3) maintain the parking area, curbs,
and sidewalks on the Premises, and (4) maintain the outside lighting and signs on the Premises.
(b) Interior. Lessees shall, at their own expense, properly maintain all aspects
regarding the interior of the Premises, including but not limited to the heating, ventilation, air
conditioning, plumbing, and electrical systems located on the Premises, and repair any damages
to the Premises. Lessees shall also, at their own expense, keep and maintain the Premises in a
clean, sanitary, and safe condition.
Section 5 - Utilities. Lessees shall pay for all electricity, gas, water, sewer, and all other utilities
during the Term of this Lease.
Section 6 - Taxes. Lessees shall pay all real estate taxes, assessments, and other charges levied
on or assessed against the Premises during any Term of this Lease. Lessees shall pay all personal
property taxes assessed against personal property located on the Premises.
Section 7 - Liability Insurance. Lessees shall, at their expense, keep in force, for the mutual
benefit of Lessor and Lessees, comprehensive general liability insurance. Such insurance shall
insure against claims and liabilities for personal injury, death, or property damage arising from
the use, occupancy, disuse, or condition of the Premises, or adjoining areas or ways, providing an
aggregate level of protection of$500,000. Lessees shall furnish Lessor with a certificate of such
insurance. Notwithstanding the foregoing, Lessor shall be permitted, but not required, to
maintain any other insurance policies on the Premises as it deems appropriate to protect its
interests.
Section 8 — Property Insurance. Lessees shall, at their expense, secure and maintain in force
during the Term of this Lease a standard form of renter's insurance, which shall include personal
property damage coverage and bodily injury coverage. Lessor shall be furnished with a certificate
of such insurance. The Lessor shall not have any responsibility for loss or damage to the Lessees'
property.
Section 9 — Amounts Required and Interest. If Lessees do not comply with their obligations
under Sections 4 through 8 of this Lease, Lessor may, without notice to Lessees, pay all such
amounts required to be paid by Lessees ("Amounts Required"). Such Amounts Required, with
interest as of the date when such payment is made, shall be due and payable immediately after the
date Lessor made such payment. Lessor shall notify Lessees of its payment of such amounts,
stating the amount paid and names of the payee. All unpaid Amounts Required due Lessor under
this Lease shall bear interest at the maximum allowable legal rate in effect in the State of Kansas
from the due date until paid.
Section 10 - Condition of Premises. Lessees agree that the Premises are tenantable and in good
condition, and their previous and ongoing possession shall be conclusive evidence of receiving
the Premises in good order and repair. Lessees acknowledge that Lessor made no
representations, agreements, or promises to decorate, alter, repair, or improve the Premises either
before or after the execution of this Lease. As such, Lessor makes no representations or
warranties as to the condition of the Premises. Upon termination of this Lease, Lessees shall
surrender the Premises to Lessor in as good a condition as on the date it took possession, except
for ordinary wear and tear.
Section 11 - Indemnification. Lessees shall jointly and severally hold harmless and indemnify
Lessor, its agents and employees, against all liability, loss, damage, expense, and judgment,
including attorneys' fees so incurred, relating to Lessees' use of the Premises, including but not
limited to any damage, neglect, or misadventure arising from or in any way growing out of the
use, misuse, or abuse of the Premises, or any failure of Lessees to comply with the terms of this
Lease. In addition, such indemnity shall extend to any liability imputed to Lessor resulting from
Lessees' failure to comply with all federal, state, county, and city laws, ordinances, and
regulations, including but not limited to, the A.D.A. and all applicable environmental laws. Each
party shall give immediate written notice to the other of all claims, actions, or proceedings
brought against the party giving such notice. Lessees jointly and severally agree to defend
against all claims brought or actions filed against Lessor with respect to Lessees' use of the
Premises, whether such claims are rightfully or wrongfully brought or filed.
Section 12 - Improvements. Lessees shall not make any improvements, alterations, or other
changes or additions in or to the Premises without the prior written consent of Lessor in each
instance.
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Section 13 - Liens. Lessees shall not do or allow anything to be done whereby the Premises may
be encumbered by a mechanics' lien or any other lien and shall, whenever and as often as any
mechanics' lien or other lien is filed against the Premises purporting to be for labor or material
furnished or to be furnished to Lessees, discharge the same of record within 10 days after the date
of filing. Lessor shall not be liable for any labor or materials furnished or to be furnished to
Lessees. Lessees further agree that they shall jointly and severaly indemnify and hold Lessor
harmless from any such payment or from damages and expenses associated with any such lien.
Section 14 - Assignment of Lease. Lessees shall not, either voluntarily or by operation of law,
assign this Lease, or any interest therein, and shall not sublet the Premises or any part thereof, or
any right or privilege appurtenant thereto, or suffer any other person (the agents and servants of
Lessees excepted) to occupy or use the Premises, or any portion thereof, without the prior written
consent of Lessor in each instance.
Section 15 - Lessor's Right of Entry. Lessees agree at any reasonable time to permit entry onto
the Premises, in the presence of a representative of Lessees, by or on behalf of Lessor for the
purposes of: (1) inspecting or surveying the Premises; (2) planning for improvements to the
Bicentennial Center as contemplated in Resolution No. 13-6988; and (3) maintaining or making
any repairs or alterations in the structure on the Premises.
Section 16 - Personal Property. All articles of personal property, furniture, and removable
partitions owned by Lessees shall be and remain the property of Lessees and shall be removed by
Lessees upon the expiration of this Lease.
Section 17 - Risk of Loss. All property of any kind that may be on the Premises during any
Term of this Lease shall be at the sole risk of Lessees, and Lessor shall not be liable to Lessees or
any other person for any injury, loss, or damage to the property of any person on the Premises.
Section 18 - Compliance with Law. Lessees shall comply with all applicable federal, state,
county, and city laws, ordinances, and regulations regarding construction, sanitation, and all other
matters.
Section 19 - Breach of Lease and Waiver. If Lessees fail to comply with any other term of this
Lease within 10 days after written notice to so comply has been mailed to Lessees by Lessor,
such failure shall be deemed as an immediate breach and forfeiture of this Lease. In such case,
all unpaid Amounts Required herein provided for shall immediately become due and payable. In
addition, Lessor shall be entitled to exercise all rights afforded it under Kansas law, including the
rights to declare the Lease forfeited, to recover immediate possession of the Premises, and to
recover reasonable attorneys' fees and costs incurred in remedying any breach. The waiver by
Lessor of any breach of any term of this Lease shall not be deemed to be a waiver of such term as
to any subsequent breach of the same or any other term of this Lease. Lessees shall be jointly
and severally liable for all obligations of Lessees as set forth herein.
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Section 20 - Damage by Casualty or Fire.
(a) Partial Destruction. If the Premises are partially damaged by fire, wind,
explosion, or other cause, then Lessees may, in their discretion, either repair such damage at their
sole expense or terminate the Lease. In no such event shall the Lessor have any obligation to
Lessees to repair damage, restore habitability, or provide alternate housing.
• (b) Substantial Destruction. If the Premises are substantially damaged or rendered
wholly untenantable by fire, wind, explosion, or other casualty, then this Lease shall
automatically terminate at the option of either Lessor or Lessees upon written notice to the other
party within 10 days after the date of the applicable event. In no such event shall the Lessor have
any obligation to Lessees to repair damage, restore habitability, or provide alternate housing.
(c) Proceeds. All property insurance proceeds (except those specifically related to
Lessees' personal property) shall be payable to and property of Lessor. Such amounts include,
but are not limited to, any damages or proceeds paid as compensation for loss of value of the
leasehold estate, or loss of any part of the Premises. Lessees hereby assign and transfer to Lessor
all such awards and proceeds granted in connection with such loss.
Section 21 - Termination. Lessees agree that upon the expiration of any Term of this Lease, or
its earlier termination in any other way as set forth herein, Lessor may, with or without process of
law, enter into the Premises and each and every part thereof, to expel and remove Lessees and
every other persons occupying or having possession thereof, to immediately retake possession of
the Premises without thereby occasioning any forfeiture of the obligations of Lessees previously
accrued under this Lease. Further, if either of the Lessees is declared insolvent or bankrupt, if
any assignment of his or her property shall be made for the benefit of his or her creditors or
others, if Lessees' leasehold interest herein is levied upon under execution, or taken through any
writ of any Court of law, or if a trustee in Bankruptcy or a receiver is appointed for Lessees'
property, then and upon the happening of any one of these events, Lessor may immediately, with
or without notice, terminate and cancel this Lease, and immediately retake possession of the
Premises without occasioning any forfeiture of the obligations of Lessees' previously accrued
under this Lease.
Section 22 —Notice to Vacate. As all parties are aware, Lessor is acquiring the Premises as part
of the improvements to the Bicentennial Center as contemplated in Resolution No. 13-6988. The
Lessees will be displaced as part of this acquisition. The Lessees are entitled under Kansas law
to relocation assistance. Even though the improvements are not federally funded, the state statute
refers to the federal relocation assistance statutes as a guide. The federal law applicable to
federally funded projects provides that "No lawful occupant shall be required to move unless he
or she has received at least 90 days written notice of the earliest date by which he or she may be
required to move." In previous correspondence, the City provided Lessees 90 days written notice
and informed them that they would receive a separate written 30-day notice to vacate. In no
event, however, shall Lessees be required to move before the July 28, 2015 expiration of the
Term. Lessees both agree that they have received the requisite notice and relocation assistance
from the Lessor.
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Section 23 - Partnership. Nothing contained herein shall be deemed or construed by the parties,
nor by any third party, as creating a relationship between the parties hereto other than the
relationship of Lessor and Lessees.
Section 24 - Hazardous Materials. Lessees agree that they shall not, without the prior written
consent of Lessor, use or permit to be used on or bring onto or about the Premises, any materials
that have been or are in the future determined to be "hazardous" by any federal, state, or local
governmental agency. Lessees shall and hereby agree to defend, indemnify and hold the Lessor
harmless from or against any claim asserted by, or any liability to any person, including without
limitation, any agency, branch or representative of federal, state, or local government, on account
of any personal injury or death or damage, destruction, or loss of property (whether it be sudden
and accidental or gradual and steady) resulting from or arising out of Lessees' usage, storage, or
disposal of hazardous materials on the Premises or Lessees' generation, brokerage, or
transference of any hazardous materials from the Premises.
Section 25 - Binding Agreement. This Lease shall extend to and be binding upon the heirs,
administrators, successors, representatives, trustees, and assigns of the parties.
Section 26 - Notices. For purposes of this Lease, notices and all other communications provided
for herein shall be in writing and shall be deemed to have been given when delivered in person or
deposited in the United States mail, certified, return receipt requested, postage prepaid, addressed
as follows:
If to Lessor: If to Lessees:
Clark, Mize & Linville, Chtd. Chase Fry
Attn: Joshua C. Howard Samantha Elsasser
P.O. Box 380 330 S. Ohio
Salina, KS 67402-0380 Salina, KS 67401
The parties may designate such other addresses from time to time by written notice to the other
party, except that notices of changes of address shall be effective only upon receipt.
Section 27 - Severability. If any provision of this Lease is held by a court of competent
jurisdiction to be contrary to law, the remaining provisions of this Lease shall remain in full force
and effect.
Section 28 - Entire Agreement. The making, execution, and delivery of this Lease has been
induced by no representations, statements, warranties, or covenants other than those expressed
herein. The provisions of this Lease constitute the entire agreement between the parties with
respect to the subject matter hereof and supersede all prior agreements, oral or written, and all
other communications relating to the subject matter hereof No amendment or modification of
any provision of this Lease shall be effective unless set forth in a document, executed by both
parties, that purports to amend this Lease.
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Section 29 - Counterparts. This Lease may be executed in counterparts but shall constitute and
be one agreement notwithstanding the fact that it may be separately executed.
Section 30 - Governing Law and Jurisdiction. This Lease shall be governed by the laws of the
state of Kansas. The parties hereto further consent and agree that personal jurisdiction, subject
matter jurisdiction and venue all lie in Saline County, Kansas, and further consent and agree that
any actions commenced regarding this Lease shall be litigated in the District Court of Saline
County, Kansas.
Section 31 - Headings. The headings contained in this Lease are for purposes of reference only
and shall not in any way affect the meaning or interpretation of this Lease.
IN WITNESS WHEREOF, the parties hereto have subscribed their names the day and
year first above written.
"Lessor" "Lessees"
CITY OF SALINA, KANSAS
ft; , Chase M. Fry
Bye VIP/M'•
Jo '. Bl.` ` ard, Mayor ' at_
Samantha Elsasser
Attest:
110 /
By: 1 r r,
JZon Gage, City Manager
ACKNOWLEDGEMENTS
STATE OF KANSAS, COUNTY OF SALINE, ss:
This instrument was acknowledged before me on , 2015, by Jon R. Blanchard
as Mayor and Jason Gage as City Manager for the City of Sali a, Kansas.
My appointment expires: )\.)\AA tey
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STATE OF KANSAS, COUNTY OF SALINE, ss: G�
This instrument was acknowledged before me on 0 , 2015, b Chase M. Fry.
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STATE OF KANSAS, COUNTY OF SALINE, ss:
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