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HomeMy WebLinkAboutA038 - Hearing on 30-year lease agreement with Ames Youth Sports Complex, Inc. for City property located south of U.S. Highway 30 and west of the South Skunk RiverITEM #:39 DATE:03-11-25 DEPT:ADMIN SUBJECT:LEASE AGREEMENT WITH AMES YOUTH SPORTS COMPLEX, INC. COUNCIL ACTION FORM BACKGROUND: In 1994, the City leased a property west of the South Skunk River and south of U.S. Highway 30 to Ames Youth Sports Complex, Inc. (AYSC), which represents several separate non-profit youth sports groups. The property was then developed into the Hunziker Youth Sports Complex. The property is furnished to AYSC in consideration of the organization providing a youth sports program for the community. This programming provides recreational opportunities and enhanced well-being for Ames residents. The availability of such recreational amenities and improved well-being, in turn, enhances the economic development of the community by making it more likely that businesses and their employees will be attracted to locate in Ames. A separate lease was entered into in May 2002 on the same terms as the original lease, but for an adjacent portion of the City property. This created the area that is today occupied by the complex. Both leases expire on February 28, 2025. In fall 2024, staff approached AYSC representatives to discuss a new lease. A team of City staff from the City Manager's Office, Parks and Recreation, Planning and Housing, and the Water & Pollution Control Departments reviewed the existing leases and proposed suggestions for a successor lease agreement. The City Attorney's Office has prepared a single lease that would replace the two separate leases that currently exist. The new lease would extend from March 1, 2025 through February 28, 2055. The agreement maintains a number of the terms from the original two leases, but revisions have been included to reflect changes that have occurred on the site since 1994. The new lease also clarifies certain expectations, including: 1. Expectations regarding site development, including the need to receive advance City approval for physical improvements to the site. A note is included that some improvements may require a flood plain development permit. 2. A clearly defined line of responsibility for maintenance of the access road, and language reflecting the actual location of the access gate that was installed in the past ten years. 3. Acknowledgement of the adjacency of the site to the river and water wellfield, and agreement to store chemicals appropriately and apply pesticides and fertilizers in accordance with certain stated best practices. 4. A reservation of the City's rights to use the property for water utility activities, crossings of the Skunk River Trail, and the Urban Deer Hunting program. In addition to these modifications, the site plan for the property has been revised and attached to the agreement. The site has developed differently than the adopted site plan from 1994, so the revised site 1 plan reflects the site's actual development and potential future development. Because the term of the lease is for longer than three years, a public hearing must be held before considering approval. The text of the lease is attached. Signed copies have been returned by a representative of the Ames Youth Sports Complex and the lease is now presented for City Council approval. ALTERNATIVES: 1. Approve the attached 30-year lease agreement with Ames Youth Sports Complex, Inc. for City property located south of U.S. Highway 30 and west of the South Skunk River. 2. Refer this item back to staff for further information. 3. Do not approve the attached lease. CITY MANAGER'S RECOMMENDED ACTION: During the past 30 years, the City's arrangement to provide land to Ames Youth Sports Complex, Inc. has allowed the organization to facilitate quality sports programs for thousands of youth in the Ames community. This programming is of a scale that could not be economically provided directly by the City, resulting in a significant value from using property that would otherwise be difficult to develop. The lease will result in providing recreational opportunities and enhanced well-being for Ames residents. The availability of such recreational amenities and improved well- being, in turn, enhances the economic development of the community by making it more likely that businesses and their employees will be attracted to locate in Ames. The proposed lease provides the property to Ames Youth Sports Complex, Inc. for an additional 30 years, updates the lease to reflect the current condition of the property, and includes several clarifications for the future. Therefore, it is the recommendation of the City Manager that the City Council approve Alternative No. 1, as described above. ATTACHMENT(S): Lease w AYSC w Exhibits.pdf 2 Page 1 of 7 S P A C E A B O V E R E S E R V E D F O R O F F I C I A L U S E Legal description: See page 2. Return to: City Clerk, 515 Clark Avenue, P.O. Box 811, Ames IA 50010 Prepared by: Mark O. Lambert, City Attorney, 515 Clark Ave., Ames, IA 50010 – 515-239-5146 LEASE AGREEMENT (CITY OF AMES - AMES YOUTH SPORTS COMPLEX, INC.) THIS LEASE, made and entered into this day of , 20 , by and between the CITY OF AMES, IOWA (hereinafter called “City”); and AMES YOUTH SPORTS COMPLEX, INC., and Iowa non-profit corporation (hereinafter called “Lessee”), W I T N E S S E T H T H A T : WHEREAS, the Ames Youth Sports Complex, Inc., has constructed facilities that support youth sports upon City property located South of Highway 30 and to the West of the Skunk River, upon which young persons have participated in games of baseball, softball, and soccer at this location since 1994. WHEREAS, the Ames Youth Sports Complex, Inc., has operated said facilities for the use and benefit of other non-profit corporations, including Ames Girls’ Softball, Ames Youth Baseball Association, Inc., and the Ames Soccer Club; and, WHEREAS, the City and Ames Youth Sports Complex, Inc. have entered into two prior lease agreements governing the use and operation of portions of the City’s property at said location, the first dated November 22, 1994, and filed as Instrument No. 94-12738, and the second dated May 28, 2002, as Instrument No. 02-07914; and WHEREAS, the Ames City Council has determined that leasing said City property to the Lessee has a public purpose in relieving the burden on existing City facilities, transferring administrative burdens associated with running youth sports programs, sharing maintenance responsibilities, and enhancing and increasing recreational opportunities available to the youth of the City; and 3 Page 2 of 7 WHEREAS, both original leases are set to expire at midnight on the 28th day of February, 2025, and the Parties desire to extend their partnership as set forth in this Agreement. NOW, THEREFORE, in consideration of the premises, the parties hereto have agreed and do hereby agree that the City shall lease to Lessee, and the Lessee shall lease from the City, all that land located in the City of Ames, Story County, Iowa, roughly described as: THE SOUTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 13, TOWNSHIP 83 NORTH, RANGE 24 WEST, OF THE 5TH P.M., STORY COUNTY, IOWA, AND ALL THE LAND SOUTH OF U.S. HIGHWAY 30 IN THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION 13, EXCEPT THE WEST 150 FEET AND EXCEPT THE EAST 82.5 FEET OF SAID NW ¼ OF THE NW ¼, AND AN IRREGULAR SHAPED TRACT OF LAND DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWEST CORNER OF THE SOUTHEAST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION 13; THENCE N89°33’30”W, A DISTANCE OF 82.50 FEET; THENCE N00°05’30”W, A DISTANCE OF 284.30 FEET; THENCE N84°46’30”E, ON THE SOUTH RIGHT-OF-WAY OF PRIMARY ROAD NO. U.S. 30, A DISTANCE 484.60 FEET TO THE SKUNK RIVER; THENCE S29°55’30”E, A DISTANCE OF 152.30 FEET; THENCE S11°19’00”E, A DISTANCE OF 136.41 FEET; THENCE S05°56’36”W, A DISTANCE OF 607.00 FEET; THENCE S11°13’29”E, A DISTANCE OF 1012.80 FEET; THENCE N75°11’29”W, A DISTANCE OF 413.27 FEET; THENCE S24°54’48”W, A DISTANCE OF 275.78 FEET; THENCE S37°59’22”E, A DISTANCE OF 531.90 FEET, THENCE S60°07’51W, A DISTANCE OF 466.86 FEET; THENCE N32°15’28”W, A DISTANCE OF 713.64 FEET; THENCE S50°49’51”W, A DISTANCE OF 512.27 FEET; THENCE N47°31’54”W, A DISTANCE OF 294.49 FEET; THENCE N00°43’00”E, A DISTANCE OF 586.66 FEET; THENCE S89°33’30”E, A DISTANCE OF 984.00 FEET TO THE SOUTHWEST CORNER OF THE SOUTHEAST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION 13; THENCE N00°17’00”W, A DISTANCE OF 1320.00 FEET TO THE POINT OF BEGINNING. [Note: Description is an approximation, and land was not surveyed for this lease]. all as depicted on Exhibit ‘A’ attached hereto and by this reference incorporated herein and made a part hereof as if fully set out, the Lessee to have and to hold said land without disturbance in accordance with the following terms and conditions of this lease to wit: 1. Term of Lease. The term of this lease shall be thirty (30) years, commencing on the 1st day of March, 2025, and ending at midnight on the 28th day of February, 2055, unless earlier terminated by operation of the provisions of this Agreement. This lease may be renewed or extended by mutual agreement. 2. Rental. There shall be no money payments due or owing under this lease. The full, complete, and satisfactory consideration for this lease shall be and is the promise of the Lessee, herein and hereby made to: 4 Page 3 of 7 a. Maintain a youth sports facility as described and specified in the Master Plan attached hereto as Appendix A, in accordance with the phases and time schedules stated in the said Master Plan, with no addition, change, or deviation unless approved by the City. b. Administer and conduct quality youth sports programs of softball, baseball, and soccer for persons under the age of 19, and administer and conduct training programs for youth and adult officials and coaches. c. Permit the use of the said sports facilities by the City, free of rental charge, for City youth recreation programs at such times as when not in use for the programs of Lessee. The time of use shall be scheduled through Lessee. The City will pay any actual costs of preparation and restoration for damage exceeding normal wear and tear, pertaining to City use. 3. Construction of Improvements. The construction or modification of any improvements (including but not limited to buildings, structures, utilities, roads, parking areas, sidewalks, bicycle paths, stormwater features, or natural areas) shall be in accordance with plans and specifications approved in advance by the City. Lessee agrees to comply with all local construction and fire codes, and to obtain any permits and inspections required by said codes. Lessee understands that certain activities on the property, including but not limited to those described above and activities such as grading or excavation may require Lessee to obtain a Flood Plain Development Permit prior to commencing work. Lessee agrees that any improvements installed without the City’s advance approval may be removed by the City and costs for removal and restoration billed to Lessee. 4. Access Road. A paved access road exists to and into the leased premises. The Lessee has installed a lockable barrier gate where the access road enters the athletic field area, approximately 160 feet south of the U.S. Highway 30 right-of-way. a. The City shall be responsible for patching of the access road from Billy Sunday Road up to the barrier gate. The City may perform snow and ice control on this portion of the access road in its sole discretion. Nothing in this agreement requires snow and ice control to be performed by the City. b. The Lessee shall be responsible for the maintenance of the barrier gate and for the maintenance of the access road as it extends into the premises from said barrier gate. Lessee shall maintain its portion of the access road at its sole expense, and to the same standards as established by the City for asphalt surface streets. The Lessee may perform snow and ice control on this portion of the access road in its own discretion. Nothing in this agreement requires snow and ice control to be performed by the Lessee. c. The City shall be provided working and operable keys and/or codes for the barrier gate and shall have the right to enter the premises at any time, with or without notice, to access water wells or any other City infrastructure. Lessee shall at all times allow public access to the access road from Billy Sunday Road up to the access gate, and on the Skunk River Bike Trail adjacent the U.S. 30 right-of-way. The City may perform snow and ice control on Lessee’s portion of the access road as necessary to access water wells or other City infrastructure. The City shall be 5 Page 4 of 7 responsible for costs to repair any damage caused to the premises by the City arising out of such access. 5. Land Leased As-Is. The City shall make no improvements to the leased premises and shall not have any obligation to make any repairs or improvements to the facility site. It is understood and agreed that the leased land is the location of conduits and other apparatus pertaining to the City water and water pollution control utilities. The Lessee shall compensate the City for any damage to City utility facilities caused by the Lessee or its patrons or attendees. It is understood that the leased land is not well drained in some places. The City shall have no obligation to fill or drain any part of the leased property. The land is floodway, and the City shall have no obligation to repair or compensate for any damage from flooding on the property. Lessee shall hold harmless and indemnify the City from any and all flooding or water damage to Lessee’s property. 6. Destruction of Improvements. In the event that the improvements existing or hereafter constructed on the property shall be wholly or partially destroyed or damaged by wind, fire, flood or other occurrence to the extent that Lessee cannot perform the promises contained in paragraph 2(a), (b), and (c) above, and the Lessee does not make repair or rebuild within one year from said occurrence, the lease shall terminate and possessory rights in the real property shall revert to the City. The City may, upon request of Lessee, grant additional time for repair or reconstruction. 7. Failure or Inability to Devote Property to Specified Use. In the event Lessee fails or is unable, for any reason other than that specified in paragraph 6 above, to devote the leased premises to the use specified in paragraph 2(a), (b), and (c) above, for any unreasonable length of time not to exceed one year, this lease shall terminate and possessory rights in the real property shall revert to the City. The City in its discretion may, upon request of Lessee, grant an extension of time upon a showing by Lessee of good faith progress toward satisfaction of the obligations of Lessee hereunder. 8. Land Stewardship. Lessee agrees to conduct its activities on the premises in an environmentally responsible manner, and to take due care in its land management practices owing to the proximity of the South Skunk River and a public water supply system wellfield to the premises. a. Lessee shall: i. Transport, store, and use all fuels, lubricants, paints, fertilizers, pesticides, or other substances on the premises in accordance with manufacturer recommendations and applicable environmental laws. ii. Employ equipment and procedures so as to minimize the risk of leaks, spillage, or over-application of such substances. iii. Minimize erosion and loss of topsoil on the premises. 6 Page 5 of 7 iv. Ensure all applications of pesticides are completed by a pesticide applicator certified by the state of Iowa. v. Not apply fertilizers containing phosphorus to the premises, unless prior written approval has been obtained from the City. vi. Not apply any fertilizer, pesticide, or any other substance within 200 feet of the City’s water wells. b. On or before December 31 each year, Lessee shall provide a report to the City’s Director of Parks and Recreation regarding the application of pesticides (including but not limited to herbicides, fungicides, insecticides, rodenticides) and fertilizers on the premises in that year, which report shall describe: i. The names and certification numbers of individuals who have applied any such pesticides or fertilizers, and ii. The dates of applications, the products applied, the application rate, size of the treated area, and the total amount applied. 9. Termination. Within thirty (30) days of the expiration or termination of this Agreement, Lessee shall remove all vehicles, equipment, materials, and supplies not of a fixed nature from the premises. Any items thereafter remaining on the premises, and all improvements, shall become the property of the City, and the City shall not owe Lessee any compensation for said remaining items or improvements. 10. Contractor Bond and Lessor Approval. Lessee shall not permit construction of any improvement on the leased property without a performance bond by the contractor and prior approval by the City of all architectural, grading, engineering, and landscaping plans. The City may waive the requirement for a performance bond in its sole discretion. The provisions of this lease agreement notwithstanding, Lessee shall meet any and all federal, state, or municipal regulatory requirements pertinent to Lessee’s development and use of the leased land. 11. Liability. Lessee agrees to hold harmless and indemnify the City and its officers and employees in their official capacities, from any and all damages or claims, including financing liens, arising directly or indirectly from any use to which Lessee puts the leased property or any activity, including construction of any building or other facility, occurring on the property. Damages occurring to crops, fences, or other property of the City or its tenants during Lessee’s construction, repair, subsequent maintenance, or use of any facility on the property shall be promptly compensated for by Lessee. Lessee shall maintain commercial general liability coverages, naming City as an additional insured, in an amount not less than $2,000,000 combined single limit, and automobile and workers’ compensation coverages if required by the laws of the State of Iowa. 12. Reservation of Rights. City reserves to itself the right to cross the leased property with and to install, maintain, and modify any and all wells, pipelines, cables, and other apparatus, 7 Page 6 of 7 whether aboveground or underground, to accommodate the utility services of the City. The City agrees that such installation, maintenance, or modification shall be conducted in a manner reasonably calculated to minimize interference with activities of Lessee on the property. City reserves the right to develop future extensions of the Skunk River Bike Trail on the leased premises and for the public to access such extensions at all times. City agrees to consult with Lessee regarding routing, timing, and the manner of construction of such extensions. The City reserves the right to designate a portion of the leased premises as an Urban Deer Management Zone and to permit appropriately licensed hunters to access the premises and conduct deer hunting activities in accordance with adopted City policies regarding Urban Deer Hunting. 13. Taxes. Lessee shall pay any and all taxes that may become assessed and payable with respect to the leased land and improvements. 14. Assignment. This Agreement shall be binding upon successors and assigns of the Lessee. Lessee shall not assign its rights in this Agreement without the written consent of the City. 15. Eminent Domain. Lessor has not received any notice from any other governmental authority as to condemnation proceedings. To the extent that any future governmental authority proposes to exercise eminent domain over all or a portion of the real property, Lessor and Lessee agree that Lessor shall be the sole party to negotiate with the other governmental authority and shall be the sole party entitled to compensation from the other governmental authority. 16. Notices. Except where this Agreement indicates otherwise, all notices and demands hereunder shall be in writing and shall be delivered or mailed: If to Lessee, to: If to Lessor (City), to: Matthew R. Lewis City of Ames, IA 800 Billy Sunday Road Attn: City Manager’s Office Ames IA 50010 515 Clark Avenue Ames, IA 50010 IN WITNESS WHEREOF, the parties hereto have caused this lease to be signed and sealed by their duly authorized representatives as of the date first above written. 8 Page 7 of 7 LESSOR: CITY OF AMES LESSEE: AMES YOUTH SPORTS COMPLEX, INC. By: By: John A. Haila, Mayor Nathan Haila, President Attest: By: Renee Hall, City Clerk STATE OF IOWA COUNTY OF STORY ss: This instrument was acknowledged before me on , 2025, by John A. Haila and Renee Hall, as Mayor and City Clerk, respectively, of the City of Ames, Iowa. Notary Public in and for Story County, Iowa STATE OF IOWA COUNTY OF STORY ss: This instrument was acknowledged before me on , 2025, by Nathan Haila, as President of Ames Youth Sports Complex, Inc. Notary Public in and for Story County, Iowa 9 10 Parking Parking Pa r k i n g Baseball Maint. Shop Baseball Baseball Baseball Baseball Soccer Soccer Soccer Conc./ Restroom Baseball Baseball Baseball Baseball Soccer Soccer Soccer Soccer Soccer Soccer Soccer Soccer Soccer Soccer Soccer Soccer Gate Well Well Well Well Well S o u t h S k u n k R i v e r U.S. Highway 30 ROW FEMA Flood Hazard Area Boundary HUNZIKER YOUTH SPORTS COMPLEX MASTER PLAN (“APPENDIX A” TO LEASE AGREEMENT) 800 BILLY SUNDAY ROAD & 605 BILLY SUNDAY ROAD REAR AMES, IA 50010 Prepared: February 11, 2025 Access Road Open Space Pa r k i n g Parking Pa r k i n g 11