HomeMy WebLinkAbout05092024 CC Agenda PacketCITY COUNCIL MEETING
AGENDA
May 9, 2024
7:00 PM
Central Point City Hall, Council Chambers
140 S 3rd St, Central Point, OR
www.centralpointoregon.gov
10. Meeting Called to Order
20. Pledge of Allegiance
30. Roll Call
40. Public Comments
The City Council sets aside 20 minutes for in-person public comments on non-
agenda items. Comments are limited to two minutes per individual, 5 minutes per
group or organization. Please complete a public comment form before speaking.
The City Council encourages written comments. Please submit your comments by
regular mail to City Council, 140 S Third St, or by email to
meetings@centralpointoregon.gov. Comments must be received by noon on the
date of the meeting to be noted in the record. Please include the date of the Council
meeting with your comments.
50. Consent Agenda
A. Approval of April 25, 2024, Meeting Minutes
60. Items Removed from the Consent Agenda
70. Ordinances and Resolutions
A. Ordinance Repealing City Treasurer & Expanding Finance Director Duties 2nd
Reading
Sydnee Dreyer, City Attorney
80. Business
A. Community Center Lease and Cost Estimates
Matt Samitore, Parks and Public Works Director
B. Mobile Food Business Code Amendments
Stephanie Powers, Planning Director
C. Planning Commission Report - May 7, 2024
Page 1 of 59
Stephanie Powers, Planning Director
90. Mayor’s Report
100. City Manager’s Report
110. Council Reports
120. Department Reports
130. Adjournment
Page 2 of 59
CITY COUNCIL MEETING
MINUTES
April 25, 2024
7:00 PM
Central Point City Hall, Council Chambers
140 S 3rd St, Central Point, OR
www.centralpointoregon.gov
1 Meeting Called to Order
The meeting was called to order at 7:00 PM by Mayor Hank Williams
2 Roll Call
The following members were present: Mayor Hank Williams, At Large
Rob Hernandez, At Large Michael Parsons, Ward II Kelley Johnson
(remote), Ward I Neil Olsen (remote), Ward III Melody Thueson
The following members were absent: Ward IV Taneea Browning
The following staff were also present: City Manager Chris Clayton; City
Attorney Sydnee Dreyer (remote); Parks and Public Works Director Matt
Samitore; Finance Director Steve Weber; Police Captain Greg Bruce; and
City Recorder Rachel Neuenschwander.
3 Pledge of Allegiance
4 Recognitions, Community Group Reports
5 Public Comments
Medford Resident Dee Giguere encouraged the Council to reject the
Animal Shelter.
Central Point Resident, Bunnie Harmon opposed to the Animal Shelter,
spoke of her concerns about the project.
Central Point Resident, Killian Yates addressed the council regarding his
opinion on the Animal Shelter district.
Page 3 of 59
Central Point City Council
April 25, 2024 Meeting
Page 2 of 7
6 Consent Agenda
A. Approval of April 11, 2024, Meeting Minutes
B. Quarterly Financial Statements
Motion: Approve
Moved By: Michael Parsons Seconded by: Rob Hernandez
Roll Call: Members Hank Williams, Rob Hernandez, Michael
Parsons, Kelley Johnson, Neil Olsen, Melody Thueson voted yes.
None voted no.
7 Items Removed from the Consent Agenda
8 Public Hearing
9 Ordinances and Resolutions
A. Ordinance Amending and Increasing Transient Lodging Tax - 2nd
Reading
City Manager Chris Clayton presented to the council the second
reading of the Ordinance Amending and Increasing the Transient
Lodging Tax. The only change from the first reading is the rate would
not take effect until July 1, 2024, which is the beginning of the next
quarter.
Rob Hernandez I move to approve Ordinance No. 2114, an
Ordinance Amending CPMC Chapter 3.24 Increasing Tax
Imposed, Establishing Joint and Several Liability for Lodging
Tax Collectors, and Updating Rights and Remedies.
Motion: Approve
Moved By: Rob Hernandez Seconded by: Michael Parsons
Roll Call: Members Hank Williams, Rob Hernandez, Michael
Parsons, Kelley Johnson, Neil Olsen, Melody Thueson voted yes.
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Central Point City Council
April 25, 2024 Meeting
Page 3 of 7
None voted no.
B. Ordinance Repealing City Treasurer & Expanding Finance Director
Duties - 1st Reading
City Attorney Sydnee Dreyer presented to the Council the first reading
of the Ordinance Repealing City Treasurer & Expanding Finance
Director Duties. The proposed amendment would clarify and expand
the role of the Finance Director, and remove provisions for the office
of the Treasurer, which no longer exists.
Melody Thueson moved to forward the Ordinance amending
CPMC Chapter 2.12 - repealing provisions for City Treasurer and
expanding Finance Director duties to a second reading.
Motion: Approve
Moved By: Melody Thueson Seconded by: Kelley Johnson
Roll Call: Members Hank Williams, Rob Hernandez, Michael
Parsons, Kelley Johnson, Neil Olsen, Melody Thueson voted yes.
None voted no.
C. Resolution Approving Initiation of Animal Control Svc. Dist.
City Manager Chris Clayton presented to the council a Resolution
Approving the Initiation of an Animal Control Service. District. The
territory of the City may only be included within the boundaries of the
District if the City Council adopts a resolution approving the proposed
Jackson County Order Initiating Formation of a Jackson County
Animal Control Service District. If the Council approves this
Resolution, it would not create the District. Rather, this would be a
first step in allowing the proposed district to go before the voters.
The council questioned Jackson County representative Joel Benton
regarding if the current location could be remodeled and what the
proposed tax rate was, and Mr. Benton responded that the current
facility is at the end of its life and that the proposed rate is $0.15.
Staff questioned Joel regarding the euthanization of the dogs and
sought clarification that the reason an animal is euthanized is based
on the recommendation from a veterinarian based on health and the
adoptability of the dog. Mr. Benton responded that most are dogs with
behavior or health issues.
Page 5 of 59
Central Point City Council
April 25, 2024 Meeting
Page 4 of 7
Rob Hernandez moved to approve Resolution No. 1783, a
Resolution Approving a Jackson County Order to initiate the
formation of a Jackson County Animal Control Service District
and consenting to the inclusion of city territory within the
boundaries of the district.
Motion: Approve
Moved By: Rob Hernandez Seconded by: Melody Thueson
Roll Call: Members Hank Williams, Rob Hernandez, Michael
Parsons, Neil Olsen, Melody Thueson voted yes. None voted no.
D. Resolution Accepting the Lowest Qualified Bid from Knife River Materials
for the Construction of the 2024 Pavement Maintenance Package
Parks and Public Works Director Matt Samitore presented to the
council a resolution accepting the lowest qualified bid from Knife River
Materials for the construction of the 2024 pavement maintenance
package, with a change to what was in the packet of a base bid of
$404,595.
Melody Thueson moved to approve Resolution No. 1784, a
Resolution Accepting the Lowest Qualified Bid from Knife River
Materials for the Construction of the 2024 Pavement
Maintenance Project and Authorizing the City Manager to
Execute a Contract.
Motion: Approve
Moved By: Melody Thueson Seconded by: Rob Hernandez
Roll Call: Members Hank Williams, Rob Hernandez, Michael
Parsons, Kelley Johnson, Neil Olsen, Melody Thueson voted yes.
None voted no.
10 Business
A. Don Jones Property Transfer
Parks and Public Works Director Matt Samitore discussed with the
council the possible Don Jones Property transfer. Before property can
be sold, it must be surplussed and the City must obtain an appraisal
of the value of the property. Staff had an appraisal performed which
Page 6 of 59
Central Point City Council
April 25, 2024 Meeting
Page 5 of 7
valued the property at $19,000. However, if the City were to convey
this property, staff recommends a minimum sale price of at least
$25,000 to cover the City’s costs, including legal costs and the costs
of moving the bollards and garbage receptacles.
The council had questions over the utilities located on the corner of
the property. Staff responded that there is a 15-foot sewer easement
and storm drain easement as well as a part of a waterline.
The council also questioned the current zoning of the property. Staff
responded that the property is currently zoned R2 or MMR, and there
would be a zone change needed for the section that is zoned Civic.
The council has agreed for staff to move forward with a resolution to
declare the property surplus.
11 Mayor’s Report
Mayor Williams reported that he attended the Jackson County Fair Board
meeting.
12 City Manager’s Report
City Manager Chris Clayton reported that:
• The Community Center meeting he was supposed to have this
week has been rescheduled for Monday.
• Next week, department directors will be meeting with the city's
lobbyists.
• The GDP grew by 1.6%, and inflation is higher than we would like it
to be.
• He listened to some Grants Pass Homeless case arguments before
the Supreme Court.
• Mayor Williams's tree has been planted.
• The city surveyor has developed a proposed map for the island
annexations, which the city will present at a future meeting.
• Kudos to Officer Pagan for helping out a citizen earlier this week.
The Earth Day celebration went well, and he praised Dan Duron for
all the vehicle maintenance he has been accomplishing in-house,
saving the city money.
13 Council Reports
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Central Point City Council
April 25, 2024 Meeting
Page 6 of 7
Council Member Kelley Johnson reported that;
• She attended the RVCOG Board meeting.
• She attended the Study Session.
Council Member Neil Olsen reported that he attended the second half of
the study session.
Council Member Melody Thueson reported that:
• She attended the School Board meeting.
• She attended the Study session.
Council Member Mike Parsons reported that:
• He attended the RVSS Board meeting.
• He attended the Study Session.
• He attended the Jackson County Public Safety Coordinating
Council meeting.
• He attended the CPPD Volunteer Appreciation Luncheon.
• He attended the Rogue Valley Sewer Service 24/25 Budget
meeting.
Council Member Rob Hernandez reported that he attended the Fire
District 3 Budget Meeting.
14 Department Reports
Finance Director Steve Weber reported that:
• He will notify the Budget Committee of the upcoming Development
Commission Budget Meeting on May 20th.
• He is expecting a draft Audit report from Moss Adams for the
2021/2022 Audit. This report, to be presented at a June meeting,
will provide us with valuable insights for our future financial
strategies.
• Quarterly statements: The financial statements are still on an
accrual basis even though the City has moved to a cash basis; they
are still in transition to a cash basis.
Parks and Public Works Director Matt Samitore reported that he attended
an MPO meeting regarding the funding for the Gas Tax dollars. There
Page 8 of 59
Central Point City Council
April 25, 2024 Meeting
Page 7 of 7
was a discussion about whether they would like city representatives to
participate in the policy meeting and the technical advisory meetings. He
will be attending the technical advisory conferences, and if anyone is
interested in attending these meetings, let him know.
15 Executive Session
16 Adjournment
Rob Hernandez moved to adjourn. All said aye and the meeting was
adjourned at 8:09 p.m.
The foregoing minutes of the April 25, 2024, Council meeting were approved by the City
Council at its meeting of _________________, 2024.
Dated: _________________________
Mayor Hank Williams
ATTEST:
__________________________
City Recorder
Page 9 of 59
Staff Report DEPARTMENT: Administration MEETING DATE: May 9, 2024
STAFF CONTACT: Sydnee Dreyer, City Attorney
SUBJECT: Ordinance Repealing City Treasurer & Expanding Finance
Director Duties 2nd Reading
SUMMARY AND BACKGROUND:
CPMC Chapter 2.12 lists the duties of a City Treasurer and a Finance
Director. However, the City only utilizes a Finance Director, who also performs some of
the duties of a Treasurer.
The proposed amendment would clarify and expand the role of the Finance Director,
and remove provisions for the office of the Treasurer, which no longer exists.
FINANCIAL ANALYSIS:
LEGAL ANALYSIS:
The City Charter does not require that the City have a Treasurer position. This
amendment is consistent with the Charter and with City practice.
COUNCIL GOALS/STRATEGIC PLAN ANALYSIS:
Strategic Priority - Responsible Governance
GOAL 2 - Invite Public Trust.
STRATEGY 1 – Be a trusted source of factual information.
STRATEGY 5 – Communicate effectively and transparently with the public.
ATTACHMENTS/EXHIBITS:
1. ORD - Amending Ch 2.12 Treasurer
STAFF RECOMMENDATION:
Make a motion to approve the Ordinance.
Page 10 of 59
RECOMMENDED MOTION:
I move to approve Ordinance No. ______ the Ordinance amending CPMC Chapter
2.12 - repealing provisions for City Treasurer and expanding Finance Director duties.
Page 11 of 59
1 – Ordinance No. _____________ (Council Meeting __/__/24)
ORDINANCE NO. _______
AN ORDINANCE AMENDING CPMC CHAPTER 2.12 - REPEALING PROVISIONS FOR CITY
TREASURER AND EXPANDING FINANCE DIRECTOR DUTIES
FINDINGS:
A. Pursuant to CPMC, Chapter 1.01.040, the City Council, may from time to time make
revisions to its municipal code which shall become part of the overall document and
citation.
B. CPMC Chapter 2.12 separately states the duties of a City Treasurer and a Finance
Director. However, the City only utilizes a Finance Director, who also performs some
of the duties of a Treasurer.
C. The proposed amendment would clarify and expand the role of the Finance Director,
and remove provisions for the Treasurer, which no longer exists.
D.Words lined through are to be deleted and words in bold are added.
THE PEOPLE OF THE CITY OF CENTRAL POINT DO ORDAIN AS FOLLOWS:
SECTION 1. Central Point Municipal Code 2.12.030 – Treasurer’s duties with respect to
city’s finances is repealed in its entirety.
SECTION 2. Central Point Municipal Code 2.12.040 – Finance Director is amended to read:
2.12.040 Finance director.
There is established the position of finance director, who shall be hired as department head for
the administration department and who shall serve under the guidelines of the city’s personnel
policies and procedures. The finance director shall be directly responsible to the city manager,
and shall have the following responsibilities:
A. Payroll accounting and time records;
B. Utility billing;
C. Cash receiving;
D. Bank deposit preparation and bank deposits;
E. Cash disbursing;
F. Code invoices with proper accounts to be charged when posting to accounting records;
Page 12 of 59
2 – Ordinance No. _____________ (Council Meeting __/__/24)
G. Prepare checks for properly approved and coded invoices for council review and approval;
H. Sign checks on order of the mayor and the council;
I. Maintain general accounting records in accordance with a comprehensive basis of accounting
for municipal corporations:
1. General ledger, with budget appropriations,
2. Cash receipt journal,
3. Cash disbursements journal;
J. Prepare financial statements as required by the council;
K. Prepare accounting reconciliations as required by the council;
L. Maintain all accounting records in accordance with council policy and available for inspection;
the books and records maintained by the city’s finance director shall be the official books and
records of the city for audit purposes;
M. Invest the city’s excess funds in interest yielding deposits as outlined in the Oregon Revised
Statues, and within the policy guidelines of the council and to act as custodial officer and local
government official, as those terms are defined by state statute, for the purpose of such
investments;
N. Coordinate budgetary and fiscal policies and procedures with other department heads;
O. Supervise administration finance department employees;
P. Such other duties as are assigned to him by the city manager.
Q. Ascertain timely bank deposits have been made;
R. Ascertain that the city’s financial statements fairly represent the city’s transactions of
cash receipts and disbursements. This would be done by procedures such as:
1. Review bank reconciliation to be sure they are done and current,
2. Review reconciliation of payroll records to budgetary accounting records,
3. Review cash receipts on a test basis to verify they are properly posted,
4. Review cash disbursements on a test basis to verify they are properly posted;
Page 13 of 59
3 – Ordinance No. _____________ (Council Meeting __/__/24)
(Ord. 1969 §1(part), 2013; Ord. 1369 §1(part), 1980).
SECTION 3. Central Point Municipal Code 2.12.050 – Compensation is amended to read:
2.12.050 Compensation.
The compensation of the recorder, treasurer and finance director shall from time to time be
established by ordinance by the city council in accordance with the council’s authority by
charter to determine such compensation. (Ord. 1369 §1(part), 1980).
SECTION 4. Codification. Provisions of this Ordinance shall be incorporated in the City
Code and the word "ordinance" may be changed to "code", "article", "section", "chapter"
or another word, and the sections of this Ordinance may be renumbered, or re-lettered,
provided however that any Whereas clauses and boilerplate provisions (i.e. Recitals A-C)
need not be codified and the City Recorder is authorized to correct any cross-references
and any typographical errors.
SECTION 5. Effective Date. The Central Point City Charter states that an ordinance enacted
by the Council shall take effect on the thirtieth day after its enactment. The effective date of
this ordinance will be the thirtieth day after the second reading.
PASSED by the Council and signed by me in authentication of its passage this ____
day of _________________ 2024.
___________________________________
Mayor Hank Williams
ATTEST:
__________________________________
City Recorder
Page 14 of 59
Staff Report DEPARTMENT: Public Works MEETING DATE: May 9, 2024
STAFF CONTACT: Matt Samitore, Parks and Public Works Director
SUBJECT: Community Center Lease and Cost Estimates
SUMMARY AND BACKGROUND:
Note: The financial projections in this strategy memo/staff report are based on the most
recent cost estimates (April 2024) associated with the City's Maximum Cost for the
Community Center.
BACKGROUND INFORMATION:
In late 2021, the City of Central Point and Jackson County entered into a partnership to
conceptually evaluate the possibility of a "joint" community center (City) and evacuation
center (Jackson County) near the Jackson County Expo.
Although Central Point had previously conducted conceptual design work on a centrally
located community center (near Central Point Elementary), the possibility of a larger
facility—including increased recreational opportunities—and the economies of scale that
could be leveraged from a partnership with the Jackson County, made the partnership
concept well worth evaluating.
In the months since deciding to explore the partnership concept, Staff from the City,
Jackson County, and Expo have worked with Ogden, Roemer, and Wilkerson (ORW)
Architecture on developing a concept that would meet the needs of all agencies. This
process has evolved from developing a concept based on stakeholder "wants" to
stakeholder "needs." Largely driven by construction costs that have been recently
exposed to hyperinflation (both domestically and globally), the stakeholders have been
forced to create a concept within reasonable financial parameters while still meeting the
needs of our citizens and business models.
The conceptual design has transitioned from a 140,000-square-foot facility to less than
100,000 square feet to eliminate unrealistic project costs. However, the proposed facility
maintains six full-size basketball courts, the minimum for hosting tournaments.
Moreover, the facility would include recreational classroom space, outdoor recreation
opportunities, and office space for our Parks & Recreation Staff. On the Jackson County
side, features include a larger commercial kitchen for feeding evacuees during an
emergency, shower facilities, and the previously mentioned gymnasium space, which
would be used as an emergency shelter.
Page 15 of 59
In early July 2022, The Central Point City Council considered all three conceptual
options developed during our collaborative process with Jackson County (conceptual
options included as attachments to this staff report). The City Council's preferred option
was option 2, a reduced version of the overall Center, reducing the eating areas,
classrooms, and gathering areas. The overall roof structure is the same, but gyms
seven and eight are uncovered. This option provided additional savings on the overall
cost. At that time it was estimated that the overall cost if the option 2 scenario was
agreed upon would be 54 to 55 Million dollars with a cost split of 25-27%. The estimated
City’s portion would be 13.5 million to 15 million.
2024 Update
Since the last update, the City and County have agreed upon a 119,000-square-foot
community center. The City's portion has grown to 31%. This includes two meeting
rooms, an exercise room, a community teaching kitchen, a pre-school/teen room, staff
offices, a concession stand, and two gymnasiums. The City's maximum amount would
be 18.7 million.
The land use process has been completed, and Adroit Construction has been hired as
the facility's contractor. An early design package is ready to be submitted to Jackson
County, RVSS, and the City of Central Point for construction in June. Additionally, the
team is ready to move forward on the final design and purchase of the steel building.
The current maximum price includes an almost 6 million-dollar contingency from Adroit
and an additional 1.5 million from Jackson County. We are also still waiting on
connection costs from Pacific Power, RVSS, and Avista.
2024 Design/Cost Potential Modifications
The staff has worked with County staff to identify a variety of Value Engineering and
Cost options to help reduce the City's obligation. Adroit Construction has identified
various Construction-Level changes and a potential grant for Solar. Those cost savings
equate to around 2.5 million.
The following is a list of additional cost savings:
1. Remove the proposed 'wall' between the County and City sides. This could save an
additional 300-400k.
2. Change the exercise room to a classroom - cost savings of 50k.
3.. Delay playground until year 2.
4. Could give one or two classrooms closer to the County side to the County. This would
reduce the city's side by 28.5%. This would reduce the City's maximum budget by
almost 1 million.
2024 Cost Projections
Current Maximum Cost before any design changes:
Page 16 of 59
Maximum Cost if the city reduces the size of the building, VE, and all design changes.
ADDITIONAL BACKGROUND
In coordination with Moss Adams and Associates (Jackson County's Contract Municipal
Auditor), Jackson County has determined that the County's American Rescue Plan Act
(ARPA) funds are eligible for use on the joint facility concept. More specifically, the
County's contribution to this project could be nearly 40 million dollars, and given the
significance of this amount, Jackson County wanted to be certain that its contribution
would comply with U.S. Department of Treasury rules and guidelines.
In the 2019-2021 City of Central Point Budget, the City was preparing for our upcoming
community center project, which was planned for the city-owned property immediately
east of Central Point Elementary/School District 6 Administrative Offices. However, the
emergence of COVID-19 delayed our plans to pursue the 10-12 million dollar stand-
alone facility (original "stand-alone" concept included as an attachment to this staff
report). The delay was a product of financial strategy by the City of Central Point
Administration, which felt the economic uncertainties created by the COVID-19
pandemic should be fully understood before proceeding with a capital project of this
magnitude.
FINANCIAL ANALYSIS:
The complete financial analysis associated construction/lease agreement is attached
and will be discussed in detail at the City Council Meeting.
LEGAL ANALYSIS:
The County has provided an initial draft lease, which is included in the agenda
packet. A number of issues have been identified by the city attorney and staff to work
through and a revised draft will be prepared and presented to the county for further
Page 17 of 59
consideration. In particular, staff will be recommending changes to the definition of
operating expenses, property taxes, repair and maintenance obligations, and the rules
and regulations.
One significant item of note is that at this time the use agreement has not been
negotiated and the county is requesting that the lease be executed prior to agreement
on the terms of the use agreement. In order to ensure the city is adequately protected,
the staff will be working on additional provisions in the lease that would potentially
outline some of the essential terms of a future use agreement and allow the city to
terminate the lease if agreement cannot be reached on the terms of a use agreement. If
that would occur we would also need language to cap any costs to the city for early
termination based on the failure to enter into a mutually agreeable use agreement.
COUNCIL GOALS/STRATEGIC PLAN ANALYSIS:
ATTACHMENTS/EXHIBITS:
1. 2264 - PaRC - Area Separation Between JC CP Cost Breakdown_20230720
2. BudgetVE
3. Urban Renewal - Community Center Debt Service Projections
4. 2024-04-26 MPERC Lease DRAFT
STAFF RECOMMENDATION:
RECOMMENDED MOTION:
Page 18 of 59
37135 SF
CENTRAL POINT
81876 SF
JACKSON COUNTY
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Building Area Legend
CENTRAL POINT
JACKSON COUNTY
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c 2023 O R W | Architecture, AIA
COLLABORATIVE APPROACH - HONEST
DESIGNPANDEMIC RESPONSE CENTER
1A PENINGER RD, CENTRAL POINT, OR 97502
20 JULY, 2023
P3.4 - AREA SEPARATION BETWEEN JC & CP
AREA SEPARATION BETWEEN JC & CP
Name Area
Percent of
Total
CENTRAL POINT 37135 SF 31.20%
JACKSON COUNTY 81876 SF 68.80%
Gross Area (Total) 119011 SF
119,011 GSF
Page 19 of 59
Page 20 of 59
Page 21 of 59
FY Projected Gross TIF Growth in Value UR Beginning Fund Balance 7/1 UR General Costs/Admin Contingency Ex. Debt Service Pine Debt Service Community Center Notes
2022 $869,921.25
2023 $976,432.53 12.24%Added Value
2024 $1,086,764.73 11.30%Added Value $1,214,755.00 Projected Construction
2025 $1,200,884.01 10.50%Added Value $1,814,594.81 Projected $100,000.00 $100,000.00 $341,000.00 Construction
2026 $1,318,972.00 9.83%Added Value $1,653,155.22 1 $100,000.00 $100,000.00 $362,463.00 $852,000.00 12/1/2026
2027 $1,542,445.50 16.94%Added Value $1,683,436.44 2 $100,000.00 $100,000.00 $383,042.00 $852,000.00 Interest + Principal 15 Million
2028 $2,072,780.70 34.38%Added Value $2,204,618.10 3 $100,000.00 $100,000.00 $395,960.00 $852,000.00
2029 $2,326,224.51 12.23%Added Value $3,000,614.38 4 $100,000.00 $100,000.00 $361,917.00 $852,000.00
2030 $2,498,948.33 7.43%$3,960,528.30 5 $100,000.00 $100,000.00 $362,087.00 $852,000.00 Potential Balloon Payment (2.0-3.0 Million)
2031 $2,678,333.68 7.18%$5,090,926.29 6 $100,000.00 $100,000.00 $362,019.00 $852,000.00
2032 $2,864,639.57 6.96%$6,398,620.89 7 $100,000.00 $100,000.00 $361,713.00 $852,000.00 $750,000.00
2033 $3,058,135.22 6.75%$8,251,849.34 8 $100,000.00 $100,000.00 $852,000.00 $750,000.00
2034 $3,259,100.29 6.57%$10,295,994.62 9 $100,000.00 $100,000.00 $852,000.00 $750,000.00
2035 $3,467,825.50 6.40%$12,538,428.84 10 $100,000.00 $100,000.00 $852,000.00 $750,000.00
2036 $3,684,612.88 6.25%$14,986,811.08 11 $100,000.00 $100,000.00 $852,000.00 $750,000.00
2037 $3,909,776.30 6.11%$17,649,098.57 12 $100,000.00 $100,000.00 $852,000.00 Fire District 3 Reimbursement (750K)
2038 $4,143,641.95 5.98%$20,533,558.42 13 $100,000.00 $100,000.00 $852,000.00
2039 $4,386,548.79 5.86%$23,648,779.77 14 $100,000.00 $100,000.00 $852,000.00
2040 $4,638,849.05 5.75%15 $100,000.00 $100,000.00 $852,000.00
Loan Amortization, 35 years, 4.5%, 16 Million Loan Amortization, 35 years, 4.5%, 15 Million
Year Interest Principal Balance Year Interest Principal Balance
1 $716,059.98 $192,592.94 $15,807,407.06 1 $671,306.23 $180,555.89 $14,819,444.11
2 $707,212.30 $201,440.63 $15,605,966.42 2 $663,011.53 $188,850.59 $14,630,593.52
3 $697,958.15 $210,694.78 $15,395,271.65 3 $654,335.77 $197,526.35 $14,433,067.17
4 $688,278.87 $220,374.06 $15,174,897.59 4 $645,261.44 $206,600.68 $14,226,466.49
5 $678,154.92 $230,498.00 $14,944,399.58 5 $635,770.24 $216,091.88 $14,010,374.61
6 $667,565.88 $241,087.04 $14,703,312.54 6 $625,843.02 $226,019.10 $13,784,355.51
7 $656,490.39 $252,162.54 $14,451,150.00 7 $615,459.74 $236,402.38 $13,547,953.13
8 $644,906.09 $263,746.84 $14,187,403.16 8 $604,599.46 $247,262.66 $13,300,690.46
9 $632,789.60 $275,863.33 $13,911,539.83 9 $593,240.25 $258,621.87 $13,042,068.59
10 $620,116.49 $288,536.44 $13,623,003.39 10 $581,359.21 $270,502.91 $12,771,565.68
11 $606,861.18 $301,791.75 $13,321,211.64 11 $568,932.35 $282,929.77 $12,488,635.91
12 $592,996.91 $315,656.01 $13,005,555.63 12 $555,934.61 $295,927.51 $12,192,708.40
13 $578,495.73 $330,157.20 $12,675,398.43 13 $542,339.75 $309,522.37 $11,883,186.03
14 $563,328.37 $345,324.56 $12,330,073.87 14 $528,120.35 $323,741.77 $11,559,444.26
15 $547,464.22 $361,188.71 $11,968,885.16 15 $513,247.71 $338,614.41 $11,220,829.84
16 $530,871.27 $377,781.65 $11,591,103.51 16 $497,691.82 $354,170.30 $10,866,659.54
17 $513,516.05 $395,136.88 $11,195,966.63 17 $481,421.30 $370,440.82 $10,496,218.72
18 $495,363.53 $413,289.40 $10,782,677.23 18 $464,403.31 $387,458.81 $10,108,759.91
19 $476,377.09 $432,275.84 $10,350,401.39 19 $446,603.52 $405,258.60 $9,703,501.31
20 $456,518.41 $452,134.52 $9,898,266.88 20 $427,986.01 $423,876.11 $9,279,625.20
21 $435,747.43 $472,905.50 $9,425,361.38 21 $408,513.22 $443,348.90 $8,836,276.30
22 $414,022.24 $494,630.69 $8,930,730.69 22 $388,145.85 $463,716.27 $8,372,560.02
23 $391,298.99 $517,353.94 $8,413,376.75 23 $366,842.80 $485,019.32 $7,887,540.70
24 $367,531.84 $541,121.09 $7,872,255.66 24 $344,561.10 $507,301.02 $7,380,239.68
25 $342,672.83 $565,980.10 $7,306,275.56 25 $321,255.78 $530,606.34 $6,849,633.34
26 $316,671.80 $591,981.12 $6,714,294.44 26 $296,879.82 $554,982.30 $6,294,651.04
27 $289,476.29 $619,176.63 $6,095,117.81 27 $271,384.03 $580,478.09 $5,714,172.94
28 $261,031.43 $647,621.50 $5,447,496.31 28 $244,716.96 $607,145.16 $5,107,027.79
29 $231,279.81 $677,373.12 $4,770,123.19 29 $216,824.82 $635,037.30 $4,471,990.49
30 $200,161.41 $708,491.52 $4,061,631.67 30 $187,651.32 $664,210.80 $3,807,779.69
31 $167,613.43 $741,039.50 $3,320,592.17 31 $157,137.59 $694,724.53 $3,113,055.16
32 $133,570.21 $775,082.72 $2,545,509.45 32 $125,222.07 $726,640.05 $2,386,415.11
33 $97,963.04 $810,689.89 $1,734,819.56 33 $91,840.35 $760,021.77 $1,626,393.34
34 $60,720.09 $847,932.84 $886,886.72 34 $56,925.08 $794,937.04 $831,456.30
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35 $21,766.20 $886,886.72 $0.00 35 $20,405.82 $831,456.30 $0.00
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INTERGOVERNMENTAL LEASE AGREEMENT
BETWEEN: City of Central Point,
an Oregon municipal corporation (Tenant)
AND: Jackson County,
a political subdivision of the State of Oregon (Landlord)
This agreement, which consists of the Basic Lease Terms and the Standard Lease Provisions,
together with attached exhibits and addenda, concerns the lease by Landlord to Tenant of space
in the Facility defined below.
RECITALS
A. County owns land known as the Jackson County Exposition and Events Center at 1
Peninger Drive, Central Point, OR 97502 (the “Property”); and
B. The development of a Multi-Use Pandemic Response Center (the “Facility”) will help
serve the needs of both City and County; and
C. County intends to develop, construct, operate and manage the Facility and lease a portion
of the Facility to Tenant, and Tenant wishes to lease a portion of the Facility from Landlord on
the terms and conditions provided herein.
BASIC LEASE TERMS
A. Date of Lease: June 1, 2026
(for reference purposes only)
B.Facility: (paragraph 1.5) Approximately 118,562 square feet as described on
attached Exhibit A and as shown on the site plan on
attached Exhibit B, located in Jackson County,
Oregon.
C.Premises: (paragraph 1.12) The area shown on attached Exhibit C, consisting
of approximately 36,853 square feet of Leasable
Floor Area.
Address of the Premises: 1 Peninger Drive, Central Point, Oregon 97502
D.Initial Term: (paragraph 3.1) 40 years, plus the number of days from the
Commencement Date through the end of the month
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in which the Commencement Date occurs if the
Commencement Date is a date other than the first
day of a month, subject to the termination
provisions below.
E.Commencement Date:
(paragraph 3.2) The date Landlord delivers possession of the
Premises to Tenant.
F.Base Rent: (paragraph 5.1) $93,882.07
G.Extension Options: (paragraph 3.4) Up to 4 options for 5 years each
H.Late Charge: (paragraph 5.6.1) 5 percent of amounts more than 10 days past due.
I.Tenant’s Percentage Share of
Operating Expenses:
(paragraph 1.17 and 6.1) 30.8%
J.Tenant’s Share of Real Property
Taxes: (paragraph 7.1) 30.8%
K.Permitted Use: (paragraph 10.1) Pandemic response center and other uses activities
not inconsistent with a pandemic response center.
L.Landlord’s Address for Payments Jackson County Administrator
and Notices: 10 S. Oakdale Ave., Room 214
(paragraphs 5.4.5 and 34) Medford, OR 97501
M.Tenant’s Address for Notices: ________________________________________
(paragraph 34) ________________________________________
________________________________________
N.Exhibits:Exhibit A - Facility Legal Description
(paragraph 45)Exhibit B - Facility Site Plan
Exhibit C - Premises Diagram
Exhibit D - Description of Landlord’s Work
(if applicable)
Exhibit E - Rules and Regulations
The paragraphs of the Standard Lease Provisions identified above in parentheses are
those provisions where references to particular Basic Lease Terms appear. Each such reference
to an item of Basic Lease Terms, wherever it may appear in the Standard Lease Provisions, shall
incorporate the applicable Basic Lease Terms set forth above.
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STANDARD LEASE PROVISIONS
1. Definitions. Unless the context otherwise specifies or requires, the following terms shall
have the meanings specified:
1.1. Additional Rent. All charges payable by Tenant to Landlord which are in
addition to Base Rent, as described in paragraph 5.3.
1.2. Commencement Date. Defined in item E of the Basic Lease Terms.
1.3. Common Area. All areas, spaces, improvements and facilities in or near the
Facility provided by Landlord for the common or joint use and benefit of the occupants of the
Facility, their officers, agents, employees, servants, customers and invitees, including, but not
limited to, all parking areas, access roads, streets, driveways, entrances, exits, sidewalks, malls,
courts, loading docks, package pick-up stations, ramps, corridors, halls, stairs, retaining walls
and landscaped areas.
1.4. Default Rate. Interest at 8 percent per annum.
1.5. Facility. The parcel of real property described on Exhibit A, as specified in item
D of the Basic Lease Terms, and all other improvements on or appurtenances to such parcel.
1.6. Hazardous Substance. Defined in paragraph 10.7.
1.7. Landlord’s Work. Landlord’s obligations, if any, for work prior to Tenant’s
occupancy, described in paragraph 4.1.
1.8. Leasable Floor Area. All areas in the Facility which are as measured from the
exterior surface of exterior walls (and from extensions thereof in the case of openings) and from
the center of interior demising walls.
1.9. Lease Year. Each one-year period from the Commencement Date to the end of
the same month of the following year and each one-year period thereafter, except if the
Commencement Date occurs on a date other than the first day of a month, include the initial
partial month and the following twelve full calendar months.
1.10. Base Rent. Defined in paragraph 5.1.
1.11. Operating Expenses. All costs paid or incurred by Landlord in connection with
the operation, maintenance, and repair of the Facility by Landlord (except as provided below),
including, without limitation, all costs and expenses paid or incurred with respect to the
following: operating, cleaning, sweeping, re-striping, repairing and resurfacing the parking lot
and driveway areas; maintenance and replanting of landscaping; maintenance, repair and
replacement of landscape sprinkler systems, parking bumpers, directional signs and other signs
and markers, lights and light standards (including bulb replacement), drainage systems and utility
systems; janitorial services for Common Area; operation and maintenance of Facility signs,
including depreciation on such signs if purchased and rent for such signs if leased; rental of
space outside the boundaries of the Facility, if needed, for use as storage and/or maintenance of
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equipment, supplies, props and other items used in connection with the Common Area; cleaning,
maintenance, repair and replacement of all sidewalks, including those situated on the perimeter
of and outside the boundaries of the Facility (but nothing herein contained shall be construed as
obligating Landlord to clean, maintain or repair any areas or improvements outside the Facility
boundaries); operation, maintenance and repair of any security and alarm systems, including
smoke alarms, and sprinkler and fire protection systems, if any, in the Common Area; fire
sprinkler/backflow monitoring and inspection fees and costs, if any; the reasonable cost of
personnel to implement such services and to provide security for the Common Area and the
Facility, including all social security and other contributions, and including worker’s
compensation insurance costs paid or incurred with respect to such personnel; all premiums for
liability and property damage insurance (including, without limitation, extended and broad form
coverage risks, mudslide, land subsidence, volcanic eruption, flood and earthquake) and rental
loss insurance; any assessment or other charges imposed by any governmental agency including,
but not limited to, assessments or other charges related to federal or state environmental
protection regulations, and storm water charges based on impervious surfaces of the Facility;
Property Taxes, if any (inasmuch as Property Taxes are assessed on a fiscal year basis, the
amount included for each calendar year shall be that portion of Property Taxes for the
overlapping fiscal years which are attributable to that calendar year); except as provided
otherwise in paragraph 1.14, and in addition to Property Taxes, any and all governmental
impositions and charges of every kind and nature whatsoever relating to the Facility or
improvements therein, including but not limited to any road user or transportation system
maintenance fee and any charges or fees measured by trip generation or length, parking spaces,
buildings, vehicle usage or similar bases for measurement; the cost of repainting the exterior of
buildings in the Facility; roof repairs and overlays for buildings in the Facility; snow and ice
removal from Common Areas and the roof of buildings in the Facility; depreciation on
mechanical equipment, or rental for such equipment if leased, and maintenance and repair of
such equipment; costs of electricity, water and other utilities used with respect to the operation
and maintenance of the Common Area, as well as all general service water charges for the
Facility, and water and sewer charges for all buildings in the Facility; and garbage and refuse
removal. Also included in Operating Expenses are capital expenditures incurred by Landlord
which benefit, maintain or improve the Common Area, capital expenditures reasonably
calculated to reduce the operating cost of Common Area, and capital expenditures required to
comply with governmental laws, rules, regulations, codes or ordinances. The costs of significant
capital expenditures permitted in this paragraph 1.11 shall be amortized over such period as
Landlord determines is appropriate, in Landlord’s discretion, with interest at a rate of two
percent over the Wall Street Journal prime rate determined at the time the work or purchase is
completed. There shall be excluded from Operating Expenses any expenses which are the
responsibility of Tenant under this agreement.
1.12. Premises. That portion of a floor of the Facility outlined on the site plan attached
as Exhibit B, consisting of the Leasable Floor Area described in item C of the Basic Lease
Terms.
1.13. Property Taxes. All applicable real property taxes and all general and special
assessments or installments thereof which are now or hereafter may be assessed against the land
and improvements which constitute the Facility. The term shall also include assessments for
local improvements and assessments for any offsite improvements required by any governmental
authority (such as street work, sidewalks, utility lines and traffic signals), and any tax, fee or
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excise assessed or levied against Landlord on rents, on the square footage of the Premises or the
Facility, or any portion thereof, on the act of entering into this agreement or on the occupancy of
Tenant, or any other tax, fee or excise, however described, as a direct substitution in whole or in
part for, or in addition to, any real property taxes. The term shall include personal property taxes
levied on or assessed against property owned by Landlord and used in connection with the
Facility. Nothing contained in this agreement shall require Tenant to pay any estate or
inheritance tax or any income, revenue or other tax on the rent payable by Tenant under this
agreement; provided, however, that if at any time during this agreement the methods of taxation
are altered, wholly or partially, so that in lieu of any tax under this paragraph 1.14, there is
levied, assessed or imposed a tax, assessment, levy, imposition, or charge, then all such taxes,
assessments, levies, impositions, or charges shall be deemed to be included within the term
Property Taxes for the purpose of this agreement.
1.14. Rent. Collectively, Base Rent and all Additional Rent.
1.15. Signs. Defined in paragraph 10.6.
1.16. Subtenant. Any sublessee, licensee, concessionaire or other person which uses
space in the Premises for the purpose of making sales of goods or services.
1.17. Tenant’s Percentage Share. The fraction, the numerator of which is the Leasable
Floor Area of the Premises and the denominator of which is the Leasable Floor Area of all
buildings in the Facility. In the event the Leasable Area of the Premises changes or there is a
change in the Leasable Floor Area of the Facility, Tenant’s Percentage Share shall be
appropriately adjusted effective either as of the last day of the calendar quarter in which the
change occurs or as of the calendar year in which the change occurs, as reasonably determined
by Landlord.
2. Lease of Premises. Landlord hereby leases the Premises to Tenant and Tenant hereby
leases the Premises from Landlord subject to all of the terms, covenants and conditions under the
Basic Lease Terms and the Standard Lease Provisions.
3. Term/Commencement.
3.1. Term. The duration of the term of this agreement shall be the period described in
item E of the Basic Lease Terms. The phrase “lease term” or “term of this agreement”, as used
in this agreement shall be the term described in item E of the Basic Lease Terms and any
renewal or extension of that term.
3.2. Commencement. The term of this agreement shall commence on the date stated
in item E of the Basic Lease Terms.
3.3. Early Possession. In the event Landlord permits Tenant to enter the Premises
prior to commencement of the lease term to undertake permitted improvements or alterations or
to fixture or equip the Premises under circumstances in which paragraph 3.3 does not apply, as a
condition of such early possession, Tenant’s indemnification obligations under paragraph 15
shall become effective upon Tenant’s entry.
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Facility Lease - 6
3.4. Option(s) to Extend Lease. If applicable, Tenant shall have an option to extend
the term of this lease agreement for the additional period(s) specified in item G of the Basic
Lease Terms, subject to the following:
3.4.1. Each extension option term shall commence on the day following
expiration of the preceding term.
3.4.2. Each option shall be exercised, if at all, by written notice from Tenant to
Landlord given not less than 12 months prior to the expiration of the preceding term.
3.4.3. The exercise of an option to extend shall not be effective if at the time of
the exercise of the option or at the time that the option term would commence there is an
existing default in the lease this agreement or an event of default which with notice or
lapse of time, or both, would constitute a default.
3.4.4. The terms and conditions of this lease agreement for an extension term
shall be identical with the initial term except for Base Rent (which shall be the amount
determined in accordance with paragraph 5.2) and except that Tenant will no longer have
an option to extend this lease agreement that has been exercised.
4. Improvement/Acceptance of Premises.
4.1. Landlord Obligations. Landlord, at its sole cost and expense, shall diligently
perform and pursue the construction of the Facility described in Exhibit D (Landlord’s Work).
Landlord’s sole obligations, if any, with respect to the Premises prior to delivery to Tenant shall
be as set forth in Exhibit D. Subject to delays occasioned by causes beyond Landlord’s
reasonable control, Landlord shall use reasonable speed and diligence to perform Landlord’s
Work, if any, pursuant to Exhibit D; provided, however, the failure to complete Landlord’s Work
by any estimated completion date for such work shall not affect the terms, validity or
commencement of this agreement. All Landlord’s Work shall be performed in a good and
workmanlike manner substantially according to the Plans. Landlord shall obtain at its own
expense all building permits, approvals and certificates required by any governmental or other
applicable authority for the Landlord’s Work and shall, upon request of Tenant, promptly deliver
copies of same to Tenant.
4.2. Acceptance. Tenant acknowledges that the Premises will be delivered by
Landlord in the condition described on Exhibit D, and that Landlord has no obligation to alter,
repair, renovate, or render fit for Tenant’s occupancy, any part of the Premises except as
described therein. The acceptance by Tenant of the Premises shall constitute an
acknowledgment by Tenant that the Premises are then in the condition called for by this
agreement, that Landlord has performed all of Landlord’s Work, if any, with respect to the
Premises, and that the Premises are in good condition and repair.
4.3. Tenant Improvements. Unless otherwise provided in this agreement, by
addendum or otherwise, or by any other writing between the parties subsequent to the date of this
agreement, Tenant shall be responsible for the build-out and installation of all improvements for
the Premises (Tenant Improvements), on the following terms and conditions, which supplement
the requirements of paragraph 11.1:
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Facility Lease - 7
4.3.1.Approval of Plans. Tenant shall first promptly furnish to Landlord a
preliminary space plan sufficient to convey architectural design. If approved, Tenant shall
thereafter promptly submit for approval Landlord’s final plans and specifications for the
Tenant Improvements. The final plans and specifications shall (a) be compatible with the
design, construction, and equipment as the building; (b) comply with all fire, mechanical,
building and other applicable laws, rules, regulations and ordinances; (c) include
locations and complete dimensions; and (d) include such other detail and other
information as Landlord shall require.
4.3.2.Time for Commencement and Completion of Work. Following approval of
the final plans and specifications, Tenant shall promptly apply for required permits and
shall commence construction of the Tenant Improvements promptly following the later of
the date Landlord delivers possession of the Premises to Tenant and the date Tenant
obtains necessary permits for the work. Tenant shall thereafter diligently pursue the work
until completion.
5. Rent. Tenant shall pay to Landlord as rental for the use and occupancy of the Premises,
at the times and in the manner provided, the following:
5.1. Base Rent. Tenant shall pay to Landlord monthly Base Rent in the amount
specified in item F of the Basic Lease Terms, payable in advance on the commencement of the
term of this agreement and on or before the first day of each and every successive calendar
month during the term of this lease, without any offset or deduction. Base Rent for any partial
month in which this lease commences or expires shall be prorated on the basis of a 30-day
month.
5.2. Base Rent for Extension Term(s). Base Rent during any extension term described
in Paragraph 3.4 that is exercised and effective shall be fair market rent for the extension term, as
agreed by the parties, following Tenant’s exercise of the option. If the parties are unable to agree
on Base Rent for the extension term, prior to 90 days before commencement of the term, a Base
Rent shall be determined by arbitration conducted in accordance with the rules of the Arbitration
Service of Portland, Inc., and either party may initiate the arbitration. Fair market rent shall be
determined without regard to the then existing use and without regard to any trade fixtures,
equipment, furnishings, or other personal property located on the Premises which are owned by
Tenant.
5.3. Additional Rent. Tenant shall pay, as Additional Rent, in the manner set forth in
paragraph 6, Tenant’s Percentage Share of all Operating Expenses (which include Property
Taxes) during the term hereof, along with all other sums of money or charges required to be paid
by Tenant to Landlord under this agreement in addition to Base Rent, whether or not the same
are designated as “Additional Rent.” If such amounts or charges are not paid at the time
provided in this agreement, they shall nevertheless be collectible as Additional Rent with the
next installment of Base Rent thereafter falling due, but nothing herein shall be deemed to
suspend or delay the payment of any amount of money or charge at the time it becomes due and
payable under this agreement, or limit any other remedy of Landlord.
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5.4. Additional Provisions. The following additional provisions shall apply to
Tenant’s obligations to pay Rent under this agreement:
5.4.1.Late Charge. In the event any Rent is not paid within 30 days after it
becomes due, Tenant shall pay to Landlord a late charge equal to five percent of the past-
due amount. Payment by Tenant and acceptance by Landlord of the late charge shall not
constitute a waiver of Tenant’s default for failure to pay or Landlord’s remedies in the
event of a default.
5.4.2.Interest. All Rent payable by Tenant to Landlord shall bear interest at the
Default Rate from the date that is 30 days after the due date for payment of such amount.
5.4.3.Prorating Rent. When it is necessary to prorate Rent or any portion
thereof, the proration shall be based on a 30-day month and 360-day year.
5.4.4.When Payments Made. A payment of Rent shall be considered made
when it is received by Landlord.
5.4.5.Place for Making Payments. Until directed otherwise in writing by
Landlord, Tenant shall make all payments due Landlord under this agreement to the
address specified in item L of the Basic Lease Terms.
6. Payment for Operating Expenses.
6.1. Tenant’s Obligation. Tenant shall pay Tenant’s Percentage Share of Operating
Expenses specified in item I of the Basic Lease Terms, determined in accordance with paragraph
1.17. Payments shall be made in accordance with this paragraph 6.
6.2. Estimated Payments. Prior to the commencement of each fiscal year (as
determined by Landlord’s fiscal calendar) during the term of this agreement, Landlord shall
furnish Tenant with a written statement setting forth Tenant’s Percentage Share of the estimated
Operating Expenses for the next calendar year. During the first calendar year of this agreement,
Tenant’s Percentage Share of estimated Operating Expenses shall be the amount determined by
Landlord at the commencement of this agreement. Tenant shall pay in advance to Landlord as
Additional Rent on the first day of each calendar month during the term of this agreement an
amount equal to one-twelfth of Tenant’s Percentage Share of the estimated Operating Expenses
for that calendar year.
6.3. Annual Adjustment. Within 90 days after the close of each fiscal year (as
determined by Landlord’s fiscal calendar) or as soon thereafter as practicable, Landlord shall
deliver to Tenant a statement of the actual amount of Tenant’s Percentage Share of Operating
Expenses payable for the calendar year just concluded. If on the basis of such statement Tenant
owes an amount that is less than the estimated payments for such calendar year previously made
by Tenant and Tenant is not in default, Tenant shall receive a credit in the amount of such excess
against the next payments due under this paragraph 6.3. If on the basis of the statement Tenant
owes an amount that is in excess of the estimated payments for that calendar year, Tenant shall
pay the such amount to Landlord within 30 days after the statement from Landlord.
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6.4. Adjustments on Commencement and Termination. If this agreement commences
on a date which is not the first day of the calendar year or terminates on a date which is not the
last day of the calendar year, the adjustment described in paragraph 6.3 applicable to the calendar
year in which the commencement or termination occurs shall be prorated on the basis of the
number of days during which this agreement is in effect. If the adjustment is not determined
until after expiration or termination of this agreement, any excess amount due Tenant or
deficiency amount due from Landlord shall be paid within 30 days after the annual statement,
subject to Landlord’s right to deduct any sum due Tenant under this provision from any other
sums remaining due from Tenant to Landlord.
7. Taxes.
7.1. Tenant’s Share of Property Taxes. The parties acknowledge that each is a public
entity exempt from Property Taxes. However, all Property Taxes, if any, that are hereafter
assessed shall be included in Operating Expenses. Tenant’s Percentage Share of such Property
Taxes shall be paid in the manner described in paragraph 6.
7.2. Tenant’s Taxes. Tenant shall pay before delinquency all taxes and other
assessments levied upon Tenant’s furniture, fixtures, equipment and other personal property
located on the Premises.
8. Utilities. Tenant shall pay all initial utility deposits and fees and shall pay all monthly
service charges for water, electricity, sewage, gas, telephone and all other utility services
furnished to the Premises during the entire term of this agreement. In the event any such services
are not separately metered or submetered to Tenant, but rather are shared and are billed to and
paid by Landlord, Tenant shall reimburse Landlord on a proportional basis. If Landlord
determines that such use is not proportional, Landlord may rely on the utility service provider for
its estimate based on the type of use and estimated consumption and may utilize such devices as
may be appropriate for determining the amount of use.
8.1. Reimbursements as Additional Rent. All reimbursements under this paragraph 8
shall be considered Additional Rent and shall be due upon statement from Landlord.
8.2. No Landlord Liability. Landlord shall not be liable to Tenant for any loss of or
interruption in utility services provided to the Premises and there shall be no reduction or
abatement of rent in the event of any such loss or interruption of utility service, and any such loss
or interruption shall not be construed as a constructive eviction.
9. Maintenance and Use of Common Area.
9.1. Tenant’s Rights. The use and occupation by Tenant of the Premises shall include
a right to the use in common with others entitled thereto of the Common Areas and other
facilities as may be mutually agreed by the parties, subject, however, to the terms and conditions
of this agreement. The rights of Tenant in and to the Common Area shall at all times be subject
to the rights of Landlord to use the same in common with Tenant, and it shall be the duty of
Tenant to keep all of the Common Area free and clear of any obstructions created or permitted
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Facility Lease - 10
by Tenant or resulting from Tenant’s operation and to permit the use of the Common Area only
for the purpose set forth above.
9.2. Landlord’s Rights. Landlord shall at all times during the term of this agreement
have the following rights with respect to the Common Area:
9.2.1. Landlord shall have the right from time to time to make changes in the
Common Area, including the location and relocation of driveways, entrances, exits,
parking spaces, the direction and flow of traffic, installation of prohibited areas,
landscaped areas, and all other facilities thereof.
9.2.2. Landlord may at any time and from time to time exclude and restrain any
person from use or occupancy of the Common Area, excepting, however, patrons and
service suppliers of Tenant who make use of the Common Area in accordance with the
rules and regulations established by Landlord from time to time.
9.2.3. Landlord shall have the right to post temporary or permanent signs and to
temporarily close any portion or all of the Common Area from time to time and to such
extent as Landlord reasonably deems necessary.
9.3. Rules and Regulations. Tenant shall faithfully observe and comply with the rules
and regulations set forth on attached Exhibit E, as may be modified by Landlord from time to
time, governing the use and occupancy of the Facility, including Common Areas.
9.4. Parking. Tenant and Tenant's patrons and invitees shall have the right to use the
parking areas in the Facility which are available for such use. Landlord shall have the right to
designate parking areas in the Facility for employee parking.
10. Use.
10.1. Permitted Use. Except as otherwise provided herein, the Premises shall be used
solely for the purpose specified in item K of the Basic Lease Terms, subject to the terms of the
Operating Agreement. Tenant shall not use or permit the Premises to be used for any other
purpose or under any other trade name without Landlord’s prior consent which Landlord may
withhold in the exercise of Landlord’s sole discretion.
10.2. Joint Use of Facility for Special Events. The parties shall make the entirety of the
Facility available to a party from time to time for the purposes of hosting major sporting events,
trade shows, conventions, or other similar activities as the parties may mutually agree (each, a
“Special Event”). Prior to the Commencement Date of this agreement, and before the first day of
Each Lease Year thereafter, the parties shall negotiate and enter into a yearly Joint Use
Agreement, which shall detail the terms and conditions of a party’s use of the Facility for a
Special Event. Such Joint Use Agreement shall describe the
10.3. Public Health Emergency Use of Facility. During any period of governmentally
declared public health emergency in Jackson County, Landlord shall have the right to the
exclusive use of the entirety of the Facility, including the Premises, for purposes of responding to
such public health emergency for so long as such use is responsibly necessary to respond to such
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public health emergency. Landlord may exercise such right by providing written notice to
Tenant.
10.4. Restrictions. In regard to the use and occupancy of the Premises and the
Common Areas, Tenant will not: (a) place or maintain any trash, refuse or other articles in any
vestibule or entry of the Premises, on the sidewalks or corridors adjacent thereto or elsewhere on
the exterior of the Premises, nor obstruct any driveway, corridor, sidewalk, parking area, or any
other portion of the Common Area; or (b) use or permit or suffer the Premises to be occupied or
used in a manner which is offensive or objectionable by reason of noise, odors, or vibrations;.
10.5. Compliance with Laws. Throughout the term of the agreement, Tenant shall
comply with all applicable laws, rules and regulations affecting Tenant’s use and operations on
the Premises (including, but not limited to, the Americans with Disabilities Act) and shall
correct, at Tenant’s sole cost, any failure of compliance because of such use or operation
including any alterations or improvements of the Premises that may be required to cure such
deficiencies. Notwithstanding the foregoing, if any exterior or structural alterations to the
Premises are required and such alterations are not acceptable to Landlord (approval shall not be
unreasonably withheld), Tenant shall cease the use or operation which requires such alteration or
improvement.
10.6. Signs. All Tenant’s Signs shall strictly comply with all applicable sign codes,
laws, rules and regulations. As used in this paragraph 10.6, “Signs” means all signs, designs,
monuments, logos, banners, projected images, pennants, decals, advertisements, pictures,
notices, lettering, numerals, graphics, or decoration.
10.7. Hazardous Substances. Tenant shall not cause or permit any Hazardous
Substance (defined below) to be spilled, leaked, disposed of, or otherwise released on or under
the Premises or the building in which the Premises are located or elsewhere within the Facility.
Tenant may use or otherwise handle on the Premises only those Hazardous Substances typically
used or sold in the prudent and safe operation of the business specified in paragraph 10.1.
Tenant may store such Hazardous Substances on the Premises only in quantities necessary to
satisfy Tenant's reasonably anticipated needs. Tenant shall comply with all Environmental Laws
(defined below) and exercise the highest degree of care in the use, handling, and storage of
Hazardous Substances and shall take all practicable measures to minimize the quantity and
toxicity of Hazardous Substances used, handled, or stored on the Premises. Upon the expiration
or termination of this agreement, Tenant shall remove all Hazardous Substances from the
Premises.
10.7.1. Tenant shall indemnify, defend and hold Landlord harmless from and
against any and all claims, judgments, damages, penalties, fines, costs, expenses,
liabilities or losses (including diminution in value of the Premises or the Facility,
investigatory costs, costs and fees of environmental consultants, attorneys and other
professionals, and damages for loss or restriction on use of rentable or usable space or of
any amenity of the Premises or Facility) that arise during or after the term of this
agreement, as a result of or in connection with any contamination of the Premises by
Hazardous Substance by Tenant or any officer, agent, employee, contractor, or invitee of
Tenant.
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10.7.2. As used in this agreement, the term “Environmental Laws” means all
federal, state and local statutes, regulations and ordinances, and any judicial or other
governmental order pertaining to the protection of health, safety or the environment. The
term “Hazardous Substance” means any hazardous, toxic, infectious, or radioactive
substance, waste, or material as defined or listed by any Environmental Law and shall
include, without limitation, petroleum oil and its fractions.
11. Alterations and Improvements.
11.1. By Tenant. Tenant shall not make or suffer to be made any alterations, additions,
or improvements to or of the Premises or any part thereof, or attach any fixture or equipment
thereto, without first obtaining Landlord’s written consent, which shall not be unreasonably
withheld. Any alterations, additions or improvements to the Premises consented to by Landlord
shall be made by Tenant at Tenant’s sole cost and expense according to plans and specifications
approved by Landlord, and any contractor or person selected by Tenant to make the same must
first be approved by Landlord. All additions, improvements and alterations shall be performed
by Tenant with quality materials and workmanship and shall be constructed strictly in
accordance with all applicable codes, ordinances, laws, rules and regulations. Tenant shall
require Tenant’s contractor to (a) obtain liability insurance and worker’s compensation insurance
with coverages not less than the coverages required under paragraph 16, (b) name Landlord and
its elected officials, officers, agents, employees, and volunteers as additional insureds, by
separate endorsement, on the contractor’s liability policy, and (c) provide Landlord with a waiver
of claims and waiver of subrogation with respect to liability and worker’s compensation claims
arising out of or relating to the work. As a condition of commencing the work, evidence that all
of the foregoing requirements have been satisfied shall be furnished to Landlord. In the event
any improvements or alterations installed by Tenant in the Premises (whether at the time of or
subsequent to the commencement of this agreement) require modifications to the parking areas
or any other portion of the Common Area to comply with the Americans with Disabilities Act, or
any other applicable local, state or federal law, Tenant shall reimburse Landlord the cost incurred
by Landlord in making such modifications. All alterations, additions, fixtures and improvements
made in or upon the Premises either by Tenant or Landlord (other than furnishings, trade fixtures
and equipment installed by Tenant) shall be Landlord’s property.
11.2. By Landlord. Landlord shall have the right at all times during the term of the
agreement to renovate and remodel buildings and other improvements in the Facility and to make
alterations or additions to and build additional structures, in the Facility, all as Landlord deems
appropriate, provided any such work by Landlord shall not unreasonably interfere with access to
or use of the Premises by Tenant.
12. Liens. Tenant covenants to keep the Premises free from all construction liens and all
other liens of any type whatsoever arising out of Tenant’s repair, alteration, maintenance, and
use of the Premises.
13. Repairs and Maintenance. The parties’ obligations with respect to maintenance and
repair are as follows:
13.1. Tenant’s Obligations. Tenant shall at all times during this agreement, at Tenant’s
sole cost, keep the Premises (including exterior doors and hardware and glass) and all doors,
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fixtures, trade fixtures, store signs (interior and exterior), ceilings, inside walls, wall coverings,
floor coverings and surfaces, furnishings, equipment and appurtenances thereof, including
lighting, heating and plumbing fixtures, utility lines from the point of entry into the Premises, the
heating and air conditioning system that serves the Premises, and all individual or building
systems in the Premises, including fire protection (including fire sprinklers) and security, if any,
in good order, condition and repair and in good operating order. In addition, Tenant shall be
responsible for any repairs to the exterior surfaces of the building and the roof membrane
resulting from abuse, negligence or lack of care by Tenant or any of Tenant’s employees, agents,
contractors or invitees. All repairs which Tenant is required to make under this paragraph shall
be equal in quality and class to the original work. Tenant shall obtain and maintain equipment
maintenance contracts with licensed and bonded contractors, in form and with contractors
reasonably satisfactory to Landlord, covering all mechanical systems within the Premises,
including heating, air conditioning and ventilating equipment (HVAC) that serves the Premises,
and shall provide evidence of such contracts as requested from time to time by Landlord.
Notwithstanding the preceding sentence, Landlord shall have the right either to require Tenant to
use Landlord’s personnel or contractor or to cause Landlord’s personnel or contractor to
maintain the mechanical systems and HVAC equipment that serve the Premises and, in the event
Landlord undertakes such maintenance, Tenant shall reimburse Landlord the reasonable cost of
such maintenance, including the cost of the maintenance contract. If Landlord undertakes the
maintenance of all such systems and equipment in the Facility, the cost thereof shall be included
as an Operating Expense. If Landlord does not maintain all such systems in the Facility, Tenant
shall reimburse the cost of such maintenance and maintenance with respect to the Premises
within 30 days after statement from Landlord, and such costs shall be considered Additional
Rent.
13.2. Roof Penetrations/Antennae. Tenant shall not undertake any penetrations of the
roof or make installations on the exterior walls or roof of the Premises without Landlord’s prior
written consent, which Landlord may withhold in the exercise of Landlord’s reasonable
discretion. With respect to any roof penetrations permitted by Landlord, Tenant shall be
responsible for any damage caused by such work and any losses resulting from any adverse
impact on the roof warranty resulting from such work. If Tenant shall install such equipment,
Tenant shall do so at its sole cost and expense and in accordance with all applicable laws, rules
and regulations. Tenant shall also defend, indemnify and hold Landlord harmless from and
against any claims, costs or expenses incurred by Landlord as a result of such installation by
Tenant. If Tenant installs such equipment, Tenant shall be responsible for maintenance and
repair thereof, at Tenant’s sole cost. At the expiration or other termination of the agreement, any
such equipment shall remain the property of Tenant and shall be removed by Tenant unless
Landlord consents in writing to allow such equipment to remain place.
13.3. Landlord’s Responsibilities. Except for Tenant’s obligations under paragraph
13.1 and 13.2, Landlord shall be responsible for maintenance and repair of the exterior surfaces
and roof of the building which comprises the Premises (the cost of which shall be included in
Operating Expenses) and for repair and replacement of structural portions of the building in
which the Premises are located, consisting of foundations, structural floors, structural ceilings,
structural walls and columns, and for repair and replacement of utility lines and conduits outside
the Premises at the exterior wall of the building.
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13.4. Reimbursement for Repairs Assumed. If Tenant fails or refuses to make repairs
that are required by this paragraph 13, Landlord may make the repairs and charge the actual costs
of repairs to Tenant. Such expenditures by Landlord shall be reimbursed by Tenant on demand
together with interest at the Default Rate from the date of expenditure by Landlord. Except in an
emergency creating an immediate risk of personal injury or property damage, Landlord shall not
perform repairs which are the obligation of Tenant and charge Tenant for the resulting expense
unless at least 30 days before work is commenced the Tenant is given notice outlining with
reasonable particularity the repairs required and Tenant fails within that time to initiate such
repairs in good faith.
13.5. Common Area Maintenance. Landlord shall be responsible for all maintenance,
replacement and repair of the Common Area improvements and facilities, the cost of which shall
be included in Operating Expenses.
14. Damage and Destruction.
14.1. Repair and Restoration. Except as provided in paragraphs 14.3 and 14.4, if the
Premises or the portion of the Facility necessary for Tenant’s occupancy should be damaged or
destroyed during the term of this agreement, Landlord shall repair or rebuild the Premises to
substantially the condition in which the Premises were immediately prior to such destruction
(excluding improvements installed by Tenant).
14.2. Rent Abatement. Subject to the limitations below, Base Rent shall be abated
proportionately during any period in which, by reason of any damage or destruction not
occasioned by the negligence or willful misconduct of Tenant or any agent, contractor, employee
or invitee of Tenant, there is a substantial interference with the operations of the Premises for its
intended purposes. Such abatement shall be proportional to the measure of business in the
Premises which Tenant may be required to discontinue. The abatement shall continue for the
period commencing with such destruction or damage and ending with the completion by
Landlord of such work, repair or reconstruction as Landlord is obligated to do.
14.3. Right to Terminate. Notwithstanding the foregoing, if the Premises, or the
portion of the Facility necessary for Tenant’s occupancy should be damaged or destroyed (a) to
the extent, in Landlord’s reasonable opinion, of 25 percent or more of the then replacement value
of either, (b) in the last three Lease Years of the term hereof, (c) by a cause or casualty other than
those covered by Landlord’s insurance, (d) to an extent, in Landlord’s sole opinion, exceeding
the proceeds available from Landlord’s insurance, or (e) to the extent that it would take, in
Landlord’s sole opinion, in excess of 180 days to complete the requisite repairs, then Landlord
may either terminate this agreement or elect to repair or restore the damage, in which event
Landlord shall repair or restore the same as provided in paragraph 14.1, except as provided in
paragraph 14.4. If such damage or destruction occurs and this agreement is not so terminated by
Landlord, this agreement shall remain in full force and effect. Landlord’s election to terminate
the agreement under this paragraph shall be exercised by notice to Tenant given within 60 days
following the damage or destruction. Such notice shall set forth the effective date of the
termination of this agreement.
14.4. Tenant’s Obligations. Upon the completion of any work of repair or restoration
by Landlord, Tenant shall forthwith repair, restore or replace, as necessary, all of Tenant’s
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improvements, trade fixtures, equipment, and furnishings to at least the condition existing at the
time of the damage.
15. Indemnification.
15.1. Tenant Indemnification. Subject to the conditions and limitations of the Oregon
Tort Claims Act and the Oregon Constitution, Tenant shall indemnify and hold Landlord
harmless from and defend Landlord against any and all claims, liability, damage or loss, and
from and against all costs and expenses (including reasonable attorneys’ fees), arising out of any
injury to or death of any person or damage to or destruction of any property arising out of the
negligence or willful misconduct of Tenant, its elected officials, officers, agents, employees, and
volunteers, except any cause resulting solely from the negligence or willful act of Landlord or its
elected officials, officers, agents, employees, or volunteers.
15.2. Landlord Indemnification. Subject to the conditions and limitations of the Oregon
Tort Claims Act and the Oregon Constitution, Landlord shall indemnify and hold Tenant
harmless from and defend Tenant against any and all claims, liability, damage or loss, and from
and against all costs and expenses (including reasonable attorneys’ fees), arising out of any
injury to or death of any person or damage to or destruction of any property arising out of the
negligence or willful misconduct of Landlord, its elected officials, officers, agents, employees,
and volunteers, except any cause resulting solely from the negligence or willful act of Tenant or
its elected officials, officers, agents, employees, or volunteers. The provisions of this paragraph
15 shall survive the termination of this agreement with respect to any damage, injury or death
occurring prior to such termination.
15.3. Survival. The provisions of this paragraph 15 shall survive termination or
expiration of this Agreement.
16. Insurance.
16.1. Insurance by Landlord. Landlord shall keep improvements in the Facility,
including the building in which the Premises are located, insured against fire and other perils,
with such coverages and endorsements and in such amounts as Landlord considers prudent,
which may include land subsistence, volcanic eruption, flood and earthquake coverage.
Landlord may also maintain rental abatement/rent loss insurance for the Facility. The cost of all
such insurance shall be included as an Operating Expense.
16.2. Insurance by Tenant. On or before the earliest of the Commencement Date or the
date Tenant takes possession of the Premises or commences or causes to commence any work of
any type in or about the Premises, and continuing during the term of this agreement, Tenant
shall, at it sole expense, procure and maintain the following insurance.
16.2.1.Property Insurance. Special form insurance for direct physical loss
covering Tenant’s trade fixtures, furniture, and equipment situated in or on the Premises
and improvements installed by Tenant in the Premises.
16.2.2.General Liability Insurance. A policy of commercial general liability
insurance covering all operations by or on behalf of Tenant, providing insurance for
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bodily injury and property damage liability and including coverage for premises and
operations, products and completed operations, contractual liability (including Tenant’s
indemnification obligations under this agreement), broad form property damage
(including completed operations), explosion, collapse, and underground hazards, personal
injury liability, and, if the permitted use described in paragraph 10.1 includes the sale of
alcoholic beverages, liquor liability. The limits of liability shall not be less than $2
million per occurrence (combined single limit for bodily injury and property damage) and
personal injury liability, and $4 million general aggregate and aggregate for products and
completed operations.
16.2.3.Automobile Liability Insurance. Bodily injury and property damage
liability insurance, including coverage for owned, hired, and non-owned automobiles.
The limits of liability shall not be less than $1 million combined single limit for each
accident for bodily injury and property damage.
16.2.4.Workers Compensation. Workers compensation and employers’ liability
insurance as required by Oregon law, with coverage of not less than statutory limits.
Landlord may require the limits of liability coverage to be increased, from time to time, to an
amount which is common in the community for uses similar to Tenant’s use. Tenant’s liability
coverage shall be on an occurrence form and shall not be under any claims made or modified
occurrence form. Tenant’s liability insurance policy shall provide that it is primary insurance
and not “excess over” or contributory with any other valid, existing and applicable insurance in
force for or on behalf of Landlord. Tenant’s policy(ies) shall not eliminate cross-liability and
shall contain a severability of interest clause. Each insurance policy Tenant is required to
maintain shall be (a) in a form reasonably acceptable to Landlord, (b) be issued by an insurer
licensed to do business in the State of Oregon, and (c) name Landlord and Landlord’s elected
officials, officers, agents, employees, and volunteers as additional insureds, by separate
endorsement. Tenant shall give at least 30 days written notice to Landlord and Landlord’s
property manager prior to any expiration, cancellation, termination, or material change. Upon
execution of this agreement, and thereafter from time to time at Landlord’s request, Tenant shall
furnish to Landlord a certificate of insurance or other evidence satisfactory to Landlord that the
insurance required by this agreement is in effect. If requested by Landlord, Tenant shall furnish
a complete copy of the insurance policies, together with endorsements, required to be maintained
by Tenant.
17. Mutual Waiver of Subrogation. Landlord and Tenant agree to have their respective
insurance companies issuing property damage insurance waive any rights of subrogation that
such companies may have against Landlord or Tenant, as the case may be. Anything in this
Lease to the contrary notwithstanding, Landlord and Tenant hereby waive and release each other
of and from any and all rights of recovery, claims, actions or causes of actions against each other,
their respective agents, officers and employees, for any loss or damage that may occur to the
Premises, Facility, or personal property within the Facility, regardless of cause or origin,
including the negligence of Landlord and Tenant and their respective agents, officers, employees
and contractors. Each party agrees to give immediately to its respective insurance company
which has issued policies of insurance covering any risk of direct physical loss, written notice of
the terms of the mutual waivers contained in this paragraph 17, and to have such insurance
policies properly endorsed, if necessary, to prevent the invalidation of said insurance coverage
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by reason of said waivers. If either Landlord or Tenant fails to provide the insurance policy or
policies required hereinabove, the waiver of subrogation contained in this paragraph 17 shall no
longer inure to the benefit of the party failing to provide such insurance, and the party claiming
against such uninsured party shall be entitled to restitution of all damages and expenses suffered
and/or claimed, without limitation.
18. Eminent Domain.
18.1. Right of Termination. Landlord or Tenant shall have the right to terminate this
agreement in the event of a taking of all the Premises or a portion sufficient to render the
remaining Premises reasonably unsuitable for the use that Tenant was then making of the
Premises. As used herein, the term “taking” means the condemnation by a competent
governmental authority pursuant to the exercise of eminent domain or a sale in lieu of
condemnation. A termination by Landlord or Tenant under this provision shall be effective on
the date of the earlier of the date of title transfer or the date of the taking of possession by the
condemning authority. An election to terminate pursuant to these provisions shall be exercised,
if at all, by notice from the electing party to the other party within 60 days after Landlord notifies
Tenant of the impending condemnation.
18.2. Restoration. If a portion of the Premises is taken and this agreement is not
terminated by either Landlord or Tenant pursuant to paragraph 18.1, this agreement shall
terminate as to the part so taken on the date Tenant is required to yield possession to the
condemning authority and Base Rent and Additional Rent shall be reduced commensurate with
the reduction in area of the Premises. If this agreement will continue after a taking, Landlord
shall commence diligently and continue thereafter to restore or cause to be restored any portion
of the Premises and parking areas remaining after the taking. If during the pendency of such
restoration, Tenant is unable to conduct its normal business operations from the Premises, Base
Rent and Additional Rent shall be equitably adjusted to the extent of such disruption or, if
Tenant is unable to conduct any business operations from the Premises, and Additional Rent
shall abate until such restoration has been completed or Tenant resumes its operations from the
Premises.
18.3. Proceeds and Claims. In the event of a taking, Tenant shall have the right to make
a claim against the condemning authority for the value of any fixtures, furniture or other personal
property taken by the condemning authority, any damages available for interruption of business,
and for relocation expenses. Landlord shall be entitled to receive the entire award for the taking
of real estate, including damages for a partial taking.
19. Assignment and Subletting.
19.1. Restriction. Without the prior written consent of Landlord in each instance,
Tenant shall not (a) assign, transfer or encumber this agreement or any interest in this agreement;
(b) suffer a transfer of this agreement by operation or law; (c) allow the use of any portion of the
Premises by a Subtenant; or (d) permit the use of occupancy of the Premises or any part thereof,
including the use by any permitted Subtenant, for any purpose other than the uses permitted
under paragraph 10.1.
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19.2. Consent. Landlord shall not unreasonably withhold its consent to a proposed
assignment, sublease, or use by another person (collectively, “Transfer”). Landlord may
withhold consent to a proposed Transfer if Landlord determines in Landlord's sole but reasonable
judgment that:
19.2.1. The transferee does not possess the qualifications reasonably equivalent to
those of Tenant or has not demonstrated experience in successfully operating a similar
facility which the transferee intends to operate from the Premises; or
19.2.2. The transferee does not possess financial qualifications sufficient for the
successful operation and use of the Premises.
19.3. Requirements. With respect to any Transfer, the following requirements and
conditions shall apply:
19.3.1. In the case of an assignment, the transferee shall expressly assume all of
Tenant’s obligations under this agreement;
19.3.2. Landlord shall not be required to consent to a sublease of less than the
entire Premises; and
19.3.3. The transferee shall not use the Premises for any purpose other than the
uses permitted under paragraph 10.1.
19.4. Additional Provisions. Any dissolution, merger, consolidation, or other
reorganization of Tenant shall be deemed an assignment of this agreement by Tenant.
19.5. Recapture. Notwithstanding any provision of this agreement to the contrary, if
Tenant desires to assign this agreement or sublet the Premises, Tenant shall deliver to Landlord a
notice Assignment Notice of Tenant’s request to assign or sublet not less than 30 days prior to
the proposed effective date of such assignment or sublease. The Assignment Notice shall
identify the particular entity or entities to which Tenant desires to assign this agreement or sublet
the Premises. Not later than 15 days after receipt of the Assignment Notice, Landlord shall have
the right to request additional information (Supporting Information) regarding the proposed
assignment or sublease as is reasonably required by Landlord in order for Landlord to determine
whether to grant or withhold its consent. Tenant shall provide the Supporting Information within
30 days after Landlord’s request. Landlord shall have the right to approve the assignment or
sublease, disapprove the assignment or sublease, or terminate this agreement within 60 days after
Landlord’s receipt of the Assignment Notice and all Supporting Information. If Landlord elects
to terminate this agreement, it shall terminate on the date which is the later of (a) the proposed
effective date of any assignment or sublease as set forth in the Assignment Notice, or (b) the date
which is 180 days after the date of receipt by Landlord of the Assignment Notice.
20. Landlord’s Access. Landlord may enter the Premises at reasonable hours to (a) inspect
the Premises; (e) determine whether Tenant is complying with all its obligations under this
agreement; (c) supply any service to be provided by Landlord to Tenant under this agreement;
and (d) make repairs required of or optional to Landlord under the terms of this agreement or
repairs to any adjoining space or utility services or make repairs, alterations or additions to the
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Premises or any other portion of the Facility. All such work shall be done as promptly as
reasonably possible and so as to cause as little interference to Tenant as reasonably possible and
any repairs, alterations, or additions to the Premises shall, when completed, not materially and
adversely affect Tenant’s use of the Premises. Landlord shall have the right to use any and all
means which Landlord may deem proper to open such doors in an emergency in order to obtain
entry to the Premises. Any entry to the Premises obtained by Landlord by any of such means, or
otherwise, shall not under any circumstances be construed or deemed to be a forcible or unlawful
entry into or a detainer of the Premises or an eviction, actual or constructive, of Tenant from the
Premises.
21. Subordination and Attornment. This agreement shall at all times be subject and
subordinate to any mortgage or trust deed (Encumbrance) hereafter placed on the Facility, or any
portion thereof, and to any and all modifications, renewals or extensions of an Encumbrance. In
the event the Facility is sold or transferred in connection with the judicial or non-judicial
foreclosure of any Encumbrance, or by deed in lieu of foreclosure, Tenant shall attorn to the
purchaser as landlord. Within 30 days after request by Landlord or any existing or prospective
lender of Landlord, Tenant shall execute a subordination and attornment agreement in a form
required by the lender.
22. Estoppel Certificate. Within 30 days after written request from Landlord, Tenant shall
execute, acknowledge and deliver to Landlord an estoppel certificate certifying: (a) that this
agreement is unmodified and in full force and effect (or, if there has been a modification, that
this agreement is in full force and effect, as modified, and stating the date and nature of each
modification); (b) the date to which rental and other sums payable under this agreement have
been paid; (c) that no notice has been received by Tenant of any default which has not been
cured, except as to any default specified in the certificate; and (d) such other matters as may be
reasonably requested by Landlord or Landlord’s lender, assignee or purchaser (or proposed
lender, assignee or purchaser). Any such estoppel certificate may be relied upon by such
purchaser, lender or assignee for estoppel purposes only.
23. Surrender on Expiration.
23.1. Condition of Premises. Upon expiration of the lease term or earlier termination of
this agreement, Tenant shall surrender the Premises in a state of good condition and repair and
broom clean. Alterations, additions and improvements made by Tenant with permission from
Landlord shall not be removed or restored to the original condition unless the terms of
permission for such work so require or Tenant is required to remove and restore pursuant to any
other provision of this agreement. Tenant's obligations under this paragraph shall be subordinate
to the provisions of paragraph 14 relating to damage or destruction.
23.2. Fixtures.
23.2.1. All fixtures placed upon the Premises during the term, other than Tenant's
trade fixtures and Signs, shall, at Landlord’s option, become the property of Landlord.
23.2.2. Prior to expiration or other termination of the lease term Tenant shall
remove all furnishings, furniture, and trade fixtures that remain Tenant’s property.
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23.3. Holdover. If Tenant does not vacate the Premises at the time required, Landlord
shall have the option (a) to treat Tenant as a tenant from month-to-month, subject to all of the
provisions of this agreement except the provisions for term and extension, if any, and at a Base
Rent equal to 110 percent of the Base Rent in effect immediately prior to the expiration or
termination, in addition to Additional Rent, or (b) to eject Tenant from the Premises and recover
damages caused by wrongful holdover. Failure of Tenant to remove fixtures, furniture,
furnishings, or trade fixtures that Tenant is required to remove under this agreement shall
constitute a failure to vacate to which this paragraph shall apply if the property not removed will
substantially interfere with occupancy of the Premises by another tenant or with occupancy by
Landlord for any purpose including preparation for a new tenant.
24. Sale by Landlord. In the event the original Landlord under this agreement, or any
successor owner of the Facility, shall sell or convey the Facility, all liabilities and obligations on
the part of the original Landlord, or such successor owner, under this agreement accruing
thereafter shall terminate, and thereupon all such liabilities and obligations shall be binding upon
the new owner. Tenant agrees to attorn to such new owner.
25. Default. The following shall be events of default:
25.1. Default in Rent or Other Charges. Failure by Tenant to pay any Rent required to
be paid by Tenant to Landlord under this agreement within 10 days after it become due.
25.2. Default in Other Covenants. Failure of Tenant to comply with any term or
condition or fulfill any obligation of this agreement (other than the payment of Rent) within 30
days after written notice by Landlord specifying the nature of the default with reasonable
particularity.
25.3. Insolvency. Insolvency of Tenant; an assignment by Tenant for the benefit of
creditors; the filing by Tenant of a voluntary petition in bankruptcy; an adjudication that Tenant
is bankrupt or the appointment of a receiver of the properties of Tenant; the filing of any
involuntary petition of bankruptcy and failure of Tenant to secure a dismissal of the petition
within 30 days after filing; attachment of or the levying of execution on the leasehold interest
and failure of Tenant to secure discharge of the attachment or release of the levy of execution
within 10 days shall constitute a default.
26. Remedies on Default.
26.1. Termination. In the event of a default this agreement may be terminated at the
option of Landlord by written notice to Tenant. Whether or not this agreement is terminated by
the election of Landlord or otherwise, Landlord shall be entitled to recover damages from Tenant
for the default, and Landlord may re-enter, take possession of the Premises, and remove any
persons or property by legal action or by self help with the use of reasonable force and without
liability for damages and without having accepted a surrender.
26.2. Reletting. Following re-entry or abandonment, Landlord may relet the Premises
and in that connection may make any suitable alterations or refurbish the Premises, or both, or
change the character or use of the Premises. Landlord may relet all or part of the Premises, alone
or in conjunction with other properties, for a term longer or shorter than the term of this
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Facility Lease - 21
agreement, upon any reasonable terms and conditions, including the granting of some rent-free
occupancy or other rent concession.
26.3. Damages. In the event of termination or retaking of possession following default,
Landlord shall be entitled to recover immediately, without waiting until the due date of any
future rent or until the date fixed for expiration of the lease term, the following amounts as
damages:
26.3.1. All sums due and not then paid at the time of such election; and
26.3.2. Liquidated damages calculated pursuant to paragraph 28.
26.4. Right to Sue More than Once. Landlord may sue periodically to recover damages
during the period corresponding to the remainder of the lease term, and no action for damages
shall bar a later action for damages subsequently accruing.
26.5. Landlord’s Right to Cure Defaults. If Tenant fails to perform any obligation
under this lease, Landlord shall have the option to do so after 30 days’ written notice to Tenant.
All of Landlord’s expenditures to correct the default shall be reimbursed by Tenant on demand
with interest at the Default Rate from the date of expenditure by Landlord and shall be
considered Additional Rent. Such action by Landlord shall not waive any other remedies
available to Landlord because of the default.
26.6. Remedies Cumulative. The foregoing remedies shall be in addition to and shall
not exclude any other remedy available to Landlord under applicable law.
27. Early Termination by Tenant. Tenant may terminate this agreement prior to the
expiration of the Initial Term upon not less than 365 days’ written notice to Landlord, provided
that Tenant shall pay to Landlord liquidated damages as set forth in paragraph 28 below.
28. Liquidated Damages. If Tenant terminates this agreement early pursuant to paragraph
27, or if Landlord terminates this lease for Tenant’s default, Tenant shall, as an additional,
cumulative obligation upon any such termination, pay to Landlord as liquidated damages a sum
equal to the present value of all of the Base Rent reserved for the residue of the then current
term. In calculating such present values under this paragraph, the parties shall use the “Discount
Rate”, which shall be defined as the rate which, when compounded monthly, is equivalent to the
Treasury Rate when compounded semi-annually. The “Treasury Rate” is defined as the semi-
annual yield on the Treasury Constant Maturity Series with maturity equal to what would have
otherwise been the remaining Initial Term of this Lease for the week prior to the Discount Rate,
as reported in Federal Reserve Statistical Release H.15 – Selected Interest Rates, as determined
by Landlord as of the applicable date. The rate will be determined by linear interpolation
between the yields reported in Release H.15, if necessary. In the event Release H.15 is no longer
published, Landlord shall select a comparable publication to determine the Treasury Rate. In the
event of Tenant’s default, this
TENANT AGREES THAT THIS SECTION 28 IS A MATERIAL INDUCEMENT FOR
LANDLORD TO UNDERTAKE CONSTRUCTION OF THE FACILITY AND ENTER INTO
THIS AGREEMENT. THE PARTIES ACKNOWLEDGE THAT THE FACILITY IS A
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Facility Lease - 22
HIGHLY SPECIALIZED, SHARED FACILITY, WHICH IS DESIGNED FOR A UNIQUE
AND SPECIFIC PUBLIC PURPOSE AND HAS LIMITED FUTURE MARKETABILITY
AND UTILITY. THUS, THE PARTIES ACKNOWLEDGE AND AGREE THAT THE
LIQUIDATED DAMAGES CONTEMPLATED HEREUNDER ARE NOT A PENALTY, BUT
ARE A FAIR AND REASONABLE DETERMINATION OF THE ACTUAL DAMAGES
THAT WOULD BE INCURRED BY LANDLORD FOR TERMINATION OF THIS
AGREEMENT PRIOR TO THE EXPIRATION OF THE INITIAL TERM. THIS
PARAGRAPH 28 SHALL BE ENFORCEABLE TO THE MAXIMUM EXTENT PERMITTED
BY LAW
29. No Merger. The voluntary or other surrender of this lease by Tenant, or a mutual
cancellation thereof, shall not work a merger, and shall, at the option of Landlord, terminate all
or any existing subleases or sub-tenancies, or may, at the option of Landlord, operate as an
assignment to it of any or all such subleases or sub-tenancies.
30. No Partnership. It is expressly understood that Landlord does not, in any way or for any
purpose, become a partner of Tenant in the conduct of its business, or otherwise, or joint venturer
or a member of a joint enterprise with Tenant.
31. No Recording. Neither this lease nor any memorandum of this lease shall be recorded.
32. Corporate Authority. Tenant does hereby covenant and warrant that Tenant is a duly
organized and existing, that Tenant has full right and authority to enter into this lease, and that
each person signing on behalf of Tenant is authorized to do so.
33. No Light and Air Easement. No diminution or shutting off of light, air, or view by any
structure which may be erected on lands adjacent to or in the vicinity of the Facility shall in any
way affect this lease or impose any liability on Landlord.
34. Notice. All notices required by this agreement shall be in writing addressed to the party
to whom the notice is directed at the address of that party set forth in item L (for Landlord) and
item M (for Tenant) of the Basic Lease Terms and shall be deemed to have been given for all
purposes upon receipt when personally delivered; one day after being sent, when sent by
recognized overnight courier service or three days after deposit in United States mail, postage
prepaid, certified mail, return receipt requested. Any party may designate a different mailing
address or a different person for all future notices by notice given in accordance with this
paragraph. If no address for notice purposes is set forth in the Basic Lease Terms, such address
shall be the last known address of the party to whom the notice is directed.
35. Attorney Fees. In any dispute involving the interpretation or enforcement of this
agreement or involving issues related to bankruptcy (whether or not such issues relate to the
terms of this agreement), the prevailing party shall be entitled to recover from the non prevailing
party reasonable attorney fees (including in-house counsel), paralegal fees, costs, disbursements,
and other expenses incurred by the prevailing party in the dispute, including those arising before
and at any trial, arbitration, bankruptcy, or other proceeding, and in any appeal or review thereof.
In addition, the amount recoverable by the prevailing party shall include an amount estimated as
the fees, costs, disbursements, and other expenses that will be reasonably incurred in collecting a
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______________________________________________________________________________
Facility Lease - 23
monetary judgment or award, or otherwise enforcing any order, judgment, award, or decree
entered in the proceeding.
36. Modification. No modification of this agreement shall be valid unless it is in writing and
is signed by all of the parties.
37. Integration. This agreement is the entire agreement of the parties. There are no
promises, terms, conditions, or obligations other than those contained in this agreement. This
agreement shall supersede all prior communications, representations, and agreements, oral or
written, of the parties.
38. Interpretation. The paragraph headings are for the convenience of the reader only and
are not intended to act as a limitation on the scope or meaning of the paragraphs themselves.
This agreement shall not be construed against the drafting party.
39. Severability. The invalidity of any term or provision of this agreement shall not affect
the validity of any other provision.
40. Waiver. Waiver by any party of strict performance of any provision of this agreement
shall not be a waiver of or prejudice any party’s right to require strict performance of the same
provision in the future or of any other provision.
41. Binding Effect. Subject to restrictions in this agreement upon assignment, if any, this
agreement shall be binding on and inure to the benefit of the heirs, legal representatives,
successors, and assigns of the parties.
42. Governing Law. This agreement shall be interpreted and enforced according to the laws
of the State of Oregon.
43. Counterparts. This agreement may be executed in multiple counterparts, each of which
shall constitute one agreement, even though all parties do not sign the same counterpart.
44. Exhibits. All exhibits referred to in item N of the Basic Lease Terms and this agreement
are incorporated by reference.
45. Status. This lease shall not become effective or be binding on any party unless it is
signed by all parties.
Landlord Tenant
__________________________________ ___________________________________
By_______________________________ By_________________________________
Title_____________________________ Title________________________________
Date:____________________________ Date:_______________________________
Page 46 of 59
EXHIBIT A
Facility Legal Description
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EXHIBIT B
Facility Site Plan
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EXHIBIT C
Premises Diagram
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EXHIBIT D
Description of Landlord’s Work
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EXHIBIT E
Rules and Regulations
1. The sidewalks, halls, passages, exits, entrances, stairways and elevators (if any) of the
Facility shall not be obstructed by any tenant or used by any tenant for any purpose other than for ingress
to and egress from the tenant’s premises. The halls, passages, exits, entrances, elevators, and stairways
are not for the general public, and Landlord shall in all cases retain the right to control and prevent access
thereto by all persons whose presence in the judgment of Landlord would be prejudicial to the safety,
character, reputation and interests of the Facility and its tenants, provided that nothing herein contained
shall be construed to prevent such access to persons with whom any tenant normally deals in the ordinary
course of its business, unless such person is engaged in illegal activities. No tenant and no employee or
invitee of any tenant shall go upon the roof of the Facility without prior written consent of Landlord or
Landlord’s property manager.
2. In the case of invasion, mob, riot, public excitement, or other circumstances rendering
such action advisable in Landlord’s opinion, Landlord reserves the right to prevent access to the Facility
during the continuance of the same by such an action as Landlord may deem appropriate, including
closing entrances to the Facility.
3. Landlord shall have the right to change the name and street address of the Facility.
4. These Rules and Regulations are in addition to and shall not be construed to in any way
modify, alter or amend, in whole or in part, the terms, covenants, agreements and conditions of any lease
of premises in the Facility.
5. Landlord reserves the right to make such other and reasonable rules and regulations as in
its judgment may from time to time be needed for the safety, care and cleanliness of the Facility, and for
the preservation of good order therein.
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FACILITY LEASE
Between
________________________________
And
_____________________________________
_____________________ Facility
Page 52 of 59
TABLE OF CONTENTS
Basic Lease Terms
Standard Lease Provisions
1. Definitions ...............................................................................................................................3
1.1. Additional Rent................................................................................................................3
1.2. Commencement Date.......................................................................................................3
1.3. Common Area..................................................................................................................3
1.4. Default Rate.....................................................................................................................3
1.6. Landlord’s Work..............................................................................................................3
1.7. Hazardous Substance.......................................................................................................3
1.8. Leasable Floor Area.........................................................................................................3
1.9. Lease Year.......................................................................................................................3
1.10. Base Rent.....................................................................................................................3
1.11. Operating Expenses.....................................................................................................3
1.13. Premises.......................................................................................................................4
1.14. Property Taxes.............................................................................................................4
1.15. Rent..............................................................................................................................5
1.17. Signs ............................................................................................................................5
1.18. Subtenant .....................................................................................................................5
1.19. Tenant’s Percentage Share...........................................................................................5
2. Lease of Premises....................................................................................................................5
3. Term/Commencement .............................................................................................................5
3.1. Term.................................................................................................................................5
3.2. Commencement...............................................................................................................5
3.4. Early Possession ..............................................................................................................5
4. Improvement/Acceptance of Premises....................................................................................6
4.1. Landlord Obligations.......................................................................................................6
4.2. Acceptance.......................................................................................................................6
4.3. Tenant Improvements......................................................................................................6
5. Rent..........................................................................................................................................7
5.1. Base Rent.........................................................................................................................7
5.2. Adjustment in Base Rent.................................................................................................7
5.4. Additional Rent................................................................................................................7
5.6. Additional Provisions ......................................................................................................8
6. Payment for Operating Expenses.............................................................................................8
6.1. Tenant’s Obligation.........................................................................................................8
6.2. Estimated Payments.........................................................................................................8
6.3. Annual Adjustment..........................................................................................................8
6.4. Adjustments on Commencement and Termination .........................................................9
7. Taxes........................................................................................................................................9
7.1. Tenant’s Share of Property Taxes....................................................................................9
7.2. Tenant’s Taxes.................................................................................................................9
8. Utilities ....................................................................................................................................9
8.3. Reimbursements as Additional Rent ...............................................................................9
8.4. No Landlord Liability......................................................................................................9
9. Use and Maintenance of Common Area..................................................................................9
9.1. Tenant’s Rights................................................................................................................9
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9.2. Landlord’s Rights ..........................................................................................................10
9.3. Rules and Regulations ...................................................................................................10
9.4. Parking...........................................................................................................................10
10. Use.....................................................................................................................................10
10.1. Permitted Use.............................................................................................................10
10.5. Restrictions................................................................................................................11
10.7. Compliance With Laws .............................................................................................11
10.8. Signs ..........................................................................................................................11
10.10. Hazardous Substances ...............................................................................................11
11. Alterations and Improvements...........................................................................................12
11.1. By Tenant...................................................................................................................12
11.2. By Landlord...............................................................................................................12
12. Liens ..................................................................................................................................12
13. Repairs and Maintenance...................................................................................................12
13.1. Tenant’s Obligations..................................................................................................13
13.2. Roof Penetrations/Antennae......................................................................................13
13.3. Landlord’s Responsibilities.......................................................................................13
13.4. Reimbursement for Repairs Assumed.......................................................................14
13.5. Common Area Maintenance......................................................................................14
14. Damage and Destruction....................................................................................................14
14.1. Repair and Restoration ..............................................................................................14
14.2. Rent Abatement.........................................................................................................14
14.3. Right to Terminate.....................................................................................................14
14.4. Tenant’s Obligations..................................................................................................15
15. Indemnification..................................................................................................................15
16. Insurance............................................................................................................................15
16.1. Insurance by Landlord...............................................................................................15
16.2. Insurance by Tenant...................................................................................................15
17. Waiver of Rights/Subrogation...........................................................................................16
18. Eminent Domain................................................................................................................17
18.1. Right of Termination .................................................................................................17
18.2. Restoration.................................................................................................................17
18.3. Proceeds and Claims..................................................................................................17
19. Assignment and Subletting................................................................................................17
19.1. Restriction..................................................................................................................17
19.2. Consent......................................................................................................................18
19.3. Requirements.............................................................................................................18
19.4. Additional Provisions ................................................................................................18
19.5. Recapture...................................................................................................................18
20. Landlord’s Access .............................................................................................................18
22. Subordination and Attornment ..........................................................................................19
23. Estoppel Certificate ...........................................................................................................19
24. Surrender on Expiration.....................................................................................................19
24.1. Condition of Premises................................................................................................19
24.2. Fixtures......................................................................................................................19
24.3. Holdover....................................................................................................................20
25. Sale by Landlord................................................................................................................20
26. Default ...............................................................................................................................20
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26.1. Default in Rent and Other Charges............................................................................20
26.2. Default in Other Covenants.......................................................................................20
26.3. Insolvency..................................................................................................................20
27. Remedies on Default..........................................................................................................20
27.1. Termination................................................................................................................20
27.2. Reletting.....................................................................................................................21
27.3. Damages ....................................................................................................................21
27.4. Right to Sue More than Once ....................................................................................21
27.5. Landlord’s Right to Cure Defaults ............................................................................21
27.6. Remedies Cumulative................................................................................................21
28. No Merger..........................................................................................................................21
29. No Partnership...................................................................................................................22
30. No Recording.....................................................................................................................22
31. Corporate Authority...........................................................................................................22
33. No Light and Air Easement...............................................................................................22
34. Notice.................................................................................................................................22
35. Attorney Fees.....................................................................................................................22
36. Modification ......................................................................................................................23
37. Integration..........................................................................................................................23
38. Interpretation......................................................................................................................23
39. Severability........................................................................................................................23
40. Waiver................................................................................................................................23
41. Binding Effect....................................................................................................................23
42. Governing Law..................................................................................................................23
43. Counterparts.......................................................................................................................23
44. Guaranty ............................................................................................................................23
45. Exhibits..............................................................................................................................23
46. Status..................................................................................................................................23
Page 55 of 59
Staff Report DEPARTMENT: Planning MEETING DATE: May 9, 2024
STAFF CONTACT: Stephanie Powers, Planning Director
Justin Gindlesperger, Community Planner III
SUBJECT: Mobile Food Business Code Amendments
SUMMARY AND BACKGROUND:
On July 14, 2022, the City Council adopted Ordinance No. 2089 establishing
regulations in CPMC 5.44 to expand opportunities for mobile food businesses. The new
code includes application requirements, review procedures, standards and approval
criteria for four (4) types of mobile food businesses:
• Mobile Food Vendors – one mobile food retailer on a single parcel of land.
• Mobile Food Pods – two to three mobile food retailers on a single parcel of land.
• Mobile Food Courts - four to twelve mobile food retailers on a single parcel of
land. These are permanent installations involve a brick and mortar building,
permanent parking and utility connections and seating areas similar to a typical
restaurant.
• Specialty Food Vendors - mobile retailer of prepackaged or whole food products
that do not involve on-site preparation and that operate for limited duration of 15
minutes of less (e.g. ice cream truck).
Since the new rules have been adopted, the City has observed an increase in mobile
food business service in the City and taken note of what seems to be working well and
where changes to the code should be considered. Based on complaints, staff
observations, and input from the Citizen’s Advisory Committee and the Planning
Commission, the following issues have been identified:
• Mobile food businesses are locating or requesting permission to locate in areas
where they are not currently allowed, including the High Mix Residential (HMR)
zone in Twin Creeks, Employment Commercial (EC) zone outside the Central
Business District and the public right-of-way;
• Every mobile food truck in the City has set up a temporary shelter for patrons to
wait for food and/or consume food on-site. This is not currently permitted in the
development and operational standards. Additionally the Transit oriented
Development Overlay requires a higher level of design that is not met by
Page 56 of 59
temporary pop-up style shelters;
• Most mobile food trucks are removed from the site on a daily basis as currently
required in the code. For comparison purposes, the City of Medford requires
relocation once every seven days;
• Based on implementation, the application process and requirements are not
clear and vary from other cities in the valley; and,
• There is a larger impact to the street system that was initially considered, which
has promoted re-evaluation of the application requirements and System
Development Charges for mobile food business operation in the City.
Based on the above, staff is seeking direction from the City Council to initiate
amendments to CPMC 5.44 and associated Chapters in Title 17 to accomplish the
following objectives:
• Clarify mobile food business definitions to distinguish between temporary mobile
food businesses where a site has not been pre-approved for regular use versus
sites that have been pre-approved through the Site Plan and Architectural
Review process;
• Establish regulations for the size and design of seating area shelters inside and
outside the Transit Oriented Development (TOD) Overlay;
• Allow mobile food businesses to operate within commercial/mixed-use areas in
the High Mix Residential (HMR) zone in Twin Creeks and the Employment
Commercial (EC) zone outside the Central Business District;
• Establish standards for mobile food business operation within the public right-of-
way;
• Align operational standards with the City of Medford to minimize confusion
among business owners and reduce staff time needed for enforcement; and,
• General code clean-up that may be identified in the code amendment process.
At the May 9, 2024 City Council meeting, staff will provide an overview of the mobile
food business regulations in CPMC 5.44 relative to the issues identified. At the
conclusion of the item, staff is requesting the City Council approve a Resolution of
Intent to initiate the code amendment process.
FINANCIAL ANALYSIS:
Amending the code does not generate additional cost to the City beyond in-kind staff
expenses.
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LEGAL ANALYSIS:
The code amendments will require changes in CPMC 5.44, as well as various zoning
district chapters in Title 17. Consequently, the code amendments must be processed
using Type IV (Legislative) land use procedures set forth in CPMC 17.05.500, which
requires City Council initiate the application by Resolution. If Council directs staff to
initiate the code amendments, staff will prepare the code changes and bring them back
following consideration and recommendation from the Citizen's Advisory Committee
and a public hearing and recommendation from the Planning Commission.
COUNCIL GOALS/STRATEGIC PLAN ANALYSIS:
Vibrant Economy, Goal 5 - Support business development and entrepreneurship.
Comment: The City initially adopted amendments to the municipal code to establish an
application process, development and operational standards for mobile food
businesses in 2022. As the new code has been implemented, there has been an
increase in mobile food businesses in Central Point. However, the success has also
come with lessons learned that could be addressed through thoughtful code
amendments that provide reasonable standards for business location and operation
while preserving the City's small-town feel.
ATTACHMENTS/EXHIBITS:
1. Resolution of Intent Rev'd
STAFF RECOMMENDATION:
Approve a Resolution of Intent directing staff to initiate amendments to CPMC 5.44 and
corresponding chapters in Title 17 to expand location options for mobile food
businesses, clarify application, development and operational standards and make
general revisions as needed.
RECOMMENDED MOTION:
I move to recommend approval of Resolution No. ____, A Resolution Declaring the City
Council's Intent to Initiate Amendments to the Central Point Municipal Code in Chapter
5.44, Mobile Food Businesses, and Various Chapters in Chapter 17, Zoning, to Expand
Mobile Food Business Location Opportunities, Clarify Application Requirements and
Standards and Make Other Minor Revisions.
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City Council Resolution No. ________________ (5/9/2024)
RESOLUTION NO. __________
A RESOLUTION DECLARING THE CITY COUNCIL’S INTENT TO INITIATE AN
AMENDMENT TO THE CENTRAL POINT MUNICIPAL CODE CHAPTER 5.44,
MOBILE FOOD BUSINESSES AND VARIOUS CHAPTERS IN TITLE 17, ZONING, TO
EXPAND MOBILE FOOD BUSINESS LOCATION OPPORTUNITIES, CLARIFY
APPLICATION REQUIREMENTS AND STANDARDS AND MAKE OTHER MINOR
REVISIONS
RECITALS:
A. An amendment of the Central Point Municipal Code (Zoning) may be initiated
by adoption of a resolution of intent by the City Council (Chapter 17.10.200);
and
B. The City Council has reason to believe that current land use, development
and operational standards in CPMC 5.44 and the zoning code are unclear
and incomplete and that the City and prospective mobile food business
applicants would be benefitted by updating its standards.
C. The City Council determines that it is in the City’s economic interest and that
the public necessity and convenience and general welfare support
consideration of such an amendment.
The City of Central Point resolves:
Section 1: By this resolution the City Council authorizes the Community Development
Department to proceed with consideration of amendments to the zoning code, including
necessary and related changes to other municipal code sections.
Section 2: Prior to formal application for the actions cited in Section 1 of this resolution
the requirements of Section 17.10 et. seq. of the City of Central Point Municipal Code
shall be met.
PASSED by the Council and signed by me in authentication of its passage this
9th day of May, 2024.
________________________________
Mayor Hank Williams
ATTEST:
_______________________________
City Recorder
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