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1987 Maint. Util JanitorAGREEMENT This AGREEMENT made this '_5th day of June , 1987 by and between the City of Salina, Kansas, a Kansas municipal corporation, hereinafter referred to as the CITY and Salina Art Center, Inc., a Kansas non - profit corporation, hereinafter referred to as the CENTER. Whereas, the CENTER is a private, nonprofit corporation organized under the laws of the State of Kansas for the purpose of establishing and maintaining a community art center and promoting a better understanding and appreciation of the visual arts; Whereas, the CENTER provides a facility that serves as a major community resource for the visual arts and is open to all members of the public; Whereas, the CENTER through its professional staff, offers to the community a comprehensive and ongoing program of art exhibits and art educational programs; Whereas, the CENTER has acquired ownership in the property described as Lot 160 on Santa Fe Avenue in the original Town (now City) of Salina, Saline County, Kansas, referred herein after as 243 South Santa Fe Avenue and; Page 2 Whereas, the CITY has just completed a major redevelopment of the Salina downtown area with the objective to help to ensure the economic and cultural vitality of the community; Now, therefore, be it resolved that the CITY and the CENTER agree as follows: Section 1. Center Duties The CENTER shall be responsible for all of the following items: A. By December 1, 1987, raising $250,000.00 to remodel the property located at 243 South Santa Fe. Said remodeling shall be approved by the City Manager inasmuch as it pertains to matters of safety, structural integrity and maintenance. B. The title to the property shall remain in the name of Salina Art Center, Inc. and its successor organizations, if any, throughout the term of this AGREEMENT. C. Annually, deposit, in cash, not less than $1,500 in a capital replacement fund. The fund shall be invested in a proper manner and in accordance with K.S.A. 12 -1675 (1986 Supp.). Expenditures from this fund shall be mutually agreed upon by the City Manager and the CENTER. Page 3 Section 2. City Duties The CITY shall provide the following services: A. Payment for water, sanitary sewer, electrical energy and natural gas services. B. Routine janitorial services C. Maintenance of the facility including necessary replacement or repair. This shall not include work necessary for purposes of art exhibits, storage or protection of personal property owned or in the control of the CENTER, or educational or other CENTER programs. D. Multi peril insurance for the building and improvement. However, the CENTER shall be responsible for providing insurance for all personal property and liability. Section 3. Effective date By December 1, 1987, the CENTER shall submit evidence satisfactory to the City Manager that sufficient funds are on hand or have been pledged to proceed with this project. Upon receipt of such evidence, the City Manager shall notify the CENTER in writing of the sufficiency of Page 4 such evidence or its insufficiency. If the evidence is insufficient, this AGREEMENT shall not become effective unless the time permitted to raise sufficient funds is extended by agreement of the parties. Section 4. Term and Termination This AGREEMENT shall be in effect for fifty (50) years from the date it becomes effective as detailed in Section 3 provided that either party may notify the other party by July 1 annually of their intent to terminate this AGREEMENT effective January 1 following. However, within this period, the AGREEMENT may be modified by the mutual consent of the parties. If within this period, the CENTER sells or otherwise disposes of the property described herein, this AGREEMENT shall be terminated. In the event of dissolution of the CENTER during the term of this AGREEMENT the exempt organization or organizations to which the net assets of the CENTER shall be distributed pursuant to Article IX of the Articles of Incorporation of the CENTER shall be determined jointly by the CENTER, City Manager and the Salina Arts and Humanities Commission, with the approval of the governing body of the CITY. Section 5. Required Reports The CENTER shall submit annually to the City Manager or others designated by the City Manager the following items: A. Annual proposed budget and program of services for the CENTER B. The CENTER'S annual report and audit Page 5 In addition, if and when, the CENTER has any plans that significantly relate to the building, the Salina Arts and Humanities Commission and the City Manager shall be informed in a timely way of those plans. Section 6. Administration and Interpretation City Manager shall be responsible for the administration and interpretation of this AGREEMENT. Section 7. Binding Effect This AGREEMENT shall be binding upon and shall inure to the benefit of tre parties hereto, their successors and assigns. Stephen C. Ryan, May airman, Salina Art Center, Inc. Authorized by City Commission Action 87- 116 JJ The Salina /art Center Sono Fe -Ar Cloflin P.O. Box 743. Salina, Kansas 67402 -0743 (913) 827 -1431 Mr. Rufus Nye Salina City Manager City /County Building Salina, Kansas 67402 Dear Mr. Nye: QoG This letter is to comply with the contract with the City of Salina in regard to the Salina Art Center Facility Maintenence Agreement. By September 1, 1987, the Center shall submit evidence satisfactory to the City Manager that sufficient funds are on hand or have been pledged to proceed with this project. I am pleased to report that the Salina Art Center has received gifts and pledges in the amount of $270,000.00. We have also received a challenge in the amount of $35,000.00 which will be activated at the end of the campaign. These gifts will enable the Art Center to proceed with the building project, although our total project cost is now $350,000.00. The change in our project goal is due to a substantial increase in construction costs. The contract with the low bidder was $256,876.00. This does not include the purchase price of the building, the downtown assessment tax, architect fees, the projected interest to cover our three -year pledges, the discovery room, furniture, and some insurance that we assumed from building donors. The pledges and donations continue to come in however, and some of these additional costs can be delayed. It is clear at this time, that sufficient gifts and pledges to cover the building renovation itself are secure. On behalf of the Salina Art Center, I want to express my thanks for your support of this project and of the future of the Salina Art Center. I am confident that the Art Center will be a good private partner with the City of Salina and that we will bring much needed and high - quality artistic services to this community. Please contact me if you need more financial information or have any particular questions. Sincerely, Saralyn Reece Hardy, Dir ctor Salina Art Center