Memorandum

City of Lawrence

Legal Services Department

TO:	David L. Corliss, City Manager
FROM:	Toni Ramirez Wheeler, Director of Legal Services
CC:	Debbie Van Saun, Assistant City Manager Ernie Shaw, Interim Director of Parks and Recreation Department
Date:	July 12, 2007
RE:	Ground Lease With KU Athletics Department For Facility in Burcham Park For KU’s Rowing Teams

The City and the KU Athletic Department have had a longstanding cooperative arrangement under which the KU Rowing Teams have stored rowing equipment in Burcham Park in a secured and defined area. 

The KU Athletic Department is proposing to build a $6 million permanent facility in Burcham Park and is seeking the appropriate land use approvals.  If the KU Athletic Department obtains the land use approvals, City staff will recommend the City Commission authorize the City Manager to enter into a lease agreement with the Athletic Department.  Some of the significant terms of the lease agreement will include:

Term – The initial lease term will be 25 years, with options to renew.

Nominal Lease Payments – The City will charge the Athletic Department a nominal fee for the lease.

Use – The Athletic Department will be permitted to use the leased premises for its rowing teams and other athletic uses, including practices and meets.  City staff also hopes to negotiate terms which will permit the City to use the boathouse when it is not being used by the Athletic Department. 

Indemnification – Under the lease, the Athletic Department will hold the City harmless and indemnify the City against all claims, damages, and expenses of any kind imposed on or incurred by the City for an occurrence arising out of KU’s use and occupancy of the Leased Premises. 

Insurance – The Athletic Department will insure its facility and equipment in amounts and on conditions requested by the City.

Repairs, Maintenance, and Utilities – The Athletic Department will maintain the facility and pay for its own utilities. 

City staff is currently reviewing a draft lease submitted by the Athletic Department.  Staff is in agreement with many of its terms.  We will forward the recommended lease to the City Commission for consideration after KU obtains the land use approvals. 

Let me know if you need anything else.