Memorandum

City of Lawrence

Legal Services Department

TO:	David L. Corliss, City Manager
FROM:	Toni Ramirez Wheeler, Director of Legal Services
CC:	Cynthia Boecker, Assistant City Manager Jonathan Douglass, Assistant to the City Manager Ernie Shaw, Interim Director, Parks and Recreation Department
Date:	October 17, 2007
RE:	Ground Lease With Kansas Athletics, Inc. for a KU Boat House Facility In Burcham Park

On September 25, 2007, the City Commission approved a Special Use Permit (SP-07-06-07) for a KU boat house and dock facility in Burcham Park.  Ordinance No. 8159 providing for a Special Use Permit, subject to certain conditions, was adopted on second reading on October 3, 2007.  One of the conditions of the Special Use Permit is the execution of a lease between the City and Kansas Athletics, Inc. (Lessee).  A copy of the proposed lease is attached.   A summary of the key provisions of the lease follows. 

Lease Term and Rent

The proposed lease term is twenty-five (25) years, with an option to renew for an additional twenty-five (25) years.  Nominal rent is charged ($1.00 per year).

Use

The Lessee agrees to build and maintain a boat house on the leased premises, at its sole cost and expense, and will have the right to use the leased premises for athletic uses. 

City’s Use of the Boat House

Kansas Athletics, Inc. agrees to permit the City to use the facility at no charge up to fifteen (15) days per year for a public or City use.  (See paragraph 17 of the lease).  If the City desires to use the boat house more than 15 days per year, the City agrees to abide by KU Athletics’ standard facility lease procedures.

Construction of the Improvements

Kansas Athletics agrees to share its construction plans and project deadlines with the City Manager or his designee prior to commencing construction.  During construction, the Lessee agrees to take reasonable precautions to ensure the construction activities do not interfere with the public’s use of the park and to guard against unnecessary damage to trees in the park. The City will have an opportunity to review and approve alterations or improvements to the leased premises.

Other Standard Lease Provisions

Kansas Athletics will maintain insurance on the leased premises.  Lessee will also pay for its own utilities and any taxes or assessments levied against the leased premises or any improvements.  The Lessee agrees to indemnify the City against claims, causes of action, and liabilities imposed on the City by reason of any occurrence or accident arising out of the Lessee’s use and occupancy of the leased premises.  The City may terminate lease pursuant to paragraph 7 of the Ground Lease.

Staff recommends the City Commission authorize the City Manager to execute a lease in substantially the form of the attached lease.