Approved Agreements and Contracts Muskegon Area Sports Hall of Fame Lease 10-12-21

View the PDF version Google Docs PDF Viewer

                      Agenda Item Review Form
                           Muskegon City Commission

Commission Meeting Date: 10/12/2021                Title: Muskegon Area Sports Hall of Fame Lease

Submitted By: Mike VanderMolen                     Department: Arena

Brief Summary: The Muskegon Area Sports Hall of Fame is formally leasing space inside the
arena to display sports memorabilia and other sports-related items.

Detailed Summary:
The Muskegon Area Sports Hall of Fame was located inside the arena for many years. During the
most recent major renovation, the display was displaced. This lease will re-establish the Hall of
Fame inside the arena for the next 5 years. The display wall be mounted on the walls inside the
hallway nearest to the convention center.
The lease amount is $1 O per year, the lease also allows a discounted $500 rental one time per
year to hold a Hall of Fame banquet. The City has pledged up to $10,000 to help complete the
build out.
The completed display will be a stunning first-impression to visitors of the arena.

Amount Requested : $10,000                            Amount Budgeted: $10,000

Fund(s) or Account(s) : 254                           Fund(s) or Account(s): 254

Recommended Motion: Approval of the lease.

For City Clerk Use Only:

Commission Action:
                                         LEASE AGREEMENT

        This Lease ("Lease") is made effective as of O (:l- I )~ , 2021 ("Effective Date"), between the
City of Muskegon, a Michigan municipal corporation, of 933 Terrace Street, Muskegon, Michigan 49440
("City" or "Landlord"), and Muskegon Area Sports Hall of Fame, Inc., a Michigan nonprofit
corporation, of 1205 Central Avenue, Muskegon, Michigan 49445 ("Tenant").


       A.     City is the owner of the Mercy Health Area ("Arena") located at 470 West Western
Avenue, Muskegon, Michigan 49440 ("Arena").

        B.      Tenant desires to lease from City, and City desires to lease to Tenant, a portion of the
Arena to locate the Muskegon Area Sports Hall of Fame ("Hall of Fame") to display sports memorabilia
and other sports-related items pursuant to the terms and conditions of this Lease.


        1.     Leased Premises. In consideration of the rents and covenants to be paid, performed and
observed by Tenant, Landlord leases to Tenant and Tenant accepts from Landlord, that certain space
within the Arena described and identified on the attached Exhibit A ("Leased Premises"), subject to the
tenns and conditions of this Lease.

         2.      Term. The term of this Lease commences on the Effective Date. The initial tenn of this
Lease shall be for a period of five (5) years. In addition, Tenant shall have 5 additional 5-year options to
renew this Lease, provided (a) that Tenant is or has not been in any material default of this Agreement at
any time during the initial term or any renewal term, (b) the Hall of Fame operated by Tenant has been in
operation at normal times prior to each option term and (c) Tenant provides written notice of its exercise
of each option to renew to the City not less than 180 days prior to the last day of the intitial term and any
renewal term. The lease may be terminated by the City after the first renewal term or upon the occurrence
of one of the following ("Terminating Events"): (a) the mutual written agreement by the parties; (b) the
dissolution, bankruptcy, or insolvency of Tenant; (c) the parties agree to relocate Tenant to a mutually
agreeable location in the Arena; or (d) the default of Tenant of a term of this Lease beyond any applicable
cure period.

        3.      Rent/Sponsorship Opportunities. For the term of this Lease, Tenant shall pay Landlord
a one-time rent payment in the amount of $10.00 for the Term payable upon execution of this Lease. City
shall control all sponsorship opportunities within the Arena, including naming rights except for
sponsorship of the annual banquet of the Hall of Fame.

        4.       Use of Premises. Tenant shall use and occupy the Leased Premises for purposes related
to the Hall of Fame and for no other purpose without the prior written consent of Landlord.

       5.       Common Areas. In addition to use of the Leased Premises, and for no additional fee,
Tenant will be allowed use of the reception area, the parking area, and the other common areas of the
Arena on a limited basis and in connection with Tenant's use of the Leased Premises.

       6.       Taxes and Utilities. Landlord shall pay all real estate taxes and assessments on the
Leased Premises and property in which the Leased Premises is located and provide at Landlord's sole
expense gas (heat), electric and internet service for the Leased Premises during the term of this Lease.
        7.      Insurance and Indemnity.

                a.        Landlord shall, at its sole cost and expense, procure and maintain in full force
        and effect fire and extended coverage insurance with an all-risk endorsement on the Arena.

                b.      Tenant shall, at its sole cost and expense, procure and maintain in full force and
        effect during the te1m of this Lease, comprehensive public liability and property damage
        insurance for claims of personal injury, death; or property damage because of the use of the
        Leased Premises, with single limit liability coverage of not less than $1,000,000. Such policy
        shall name Landlord as an additional insured to the extent of Tenant's obligations under the

         8.      Maintenance, Repair, Security and Tenant Access. Landlord shall, at Landlord's sole
expense, maintain in good condition and repair the Leased Premises and shall make any necessary capital
replacements of the heating and air conditioning system, the electrical wiring system, and the roof and
structural walls, to the extent necessary to preserve Tenant's intended use and enjoyment of the Leased
Premises. Repairs or replacements necessitated by the negligent acts of Tenant shall be made at the
expense of Tenant. Landlord shall secure the Premises and maintain the Leased Premises in good and
sanitary order and condition. Tenant shall have access to the Premises at all times.

        9.       Landlord's Work. Landlord shall provide the Leased Premises to Tenant in a finished
condition ready for Tenant's Work (defined below). For purposes of this Lease, "Landlord's Work" shall
include the following:

                a.      Adequate mechanical and electrical systems for use;
                b.      Finished Flooring'
                c.      Drywall;
                d.      Paint; and,
                e.      Doors.

         10.     Tenant's Work; Improvements and Alterations. Tenant may make alterations,
additions, and improvements to the Leased Premises as required for its use, upon approval of Landlord.
Tenant may furnish and install equipment as needed to operate the Hall of Fame without the consent of
Landlord including the right to install display cases and shelves, wall mounted televisions and monitors,
trade fixtures, and equipment. All such furnishings and equipment shall remain the property of Tenant
upon termination of this Lease. ("Tenant's Work").

         11.    Tenant Allowance. As further consideration of Tenant operating the Hall of Fame within
the Leased Premises, Landlord shall provide Tenant with an allowance toward the cost of performing
Tenant's Work in the amount of $30,000 ("Tenant Allowance"). The sources of funds for the Tenant
Allowance is $10,000 from Dan Israel or his company, $10,000 from the City and $10,000 from Mercy
Health. The Mercy Health contribution shall be used to honor LC Walker. The Tenant Allowance shall be
paid to Tenant upon execution of this Lease. Tenant shall be permitted to use the Tenant Allowance on the
Leased Premises in Tenant's discretion consistent with operation of the Hall of Fame.

         12.    Compliance with Arena Rules. Tenant shall comply with all the building rules
established by the Arena. Landlord shall provide Tenant with a copy of such rules upon the execution of
this Lease. Tenant or Tenant's employees shall not block or place any items that prevent access to and
from the Arena entrances and exits.
        13.     Right to Display. Landlord agrees not to place any signs or allow any other materials or
items to be located within the Leased Premises. Further, Landlord agrees not to pennit any vendor,
concessionaire, or other person to operate within the Leased Premises without the express written consent
of Tenant.

       14.     Right of Entry. Landlord shall have the right to enter the Leased Premises at any time to
confirm Tenant's compliance with this Lease and to make any necessary repairs, and in the event of

         15.      Quiet Enjoyment. Provided Tenant has fully perfonned its obligations under this Lease,
Tenant shall be permitted to peaceably and quietly hold and enjoy the Leased Premises and all other rights
set forth in this Lease, without hindrance from Landlord or any other person or entity. Landlord agrees
that there are no restrictions applicable to the Leased Premises which affect and limit the right of Tenant
to exercise any of the rights granted to Tenant by this Lease. Notwithstanding anything in this paragraph
to the contrary, Landlord reserves the right to hold and conduct meetings, sporting events, practices,
graduation ceremonies, job fairs, circuses, concerts, and other activities determined appropriate in the sole
discretion of Landlord, within the Arena, as the case may be, and that such activities do not violate this

        16.     Event Use Dates; Annual Banquet. Landlord and Tenant agree to reasonably work
together to coordinate Hall of Fame event use dates that do not conflict with other groups visiting the
Leased Premises. Further, at least once per year at a time between June 1 and August 30 that is mutually
agreeable to Landlord and Tenant, Tenant shall have the exclusive right to use the Arena for its annual
award ceremony and banquet for an annual fee of $500 which fee includes set-up and clean-up by
Landlord and the use of the Arena's audio and video equipment for the day.

        17.    Assignment and Subletting. Tenant may not assign this Lease or sublet all or any part
of the Leased Premises at any time during the term of this Lease without the prior written consent of
Landlord, which consent shall not be unreasonably withheld.

          18.    Default and Repossession. If the Leased Premises shall be deserted or vacated, or if
proceedings are commenced against Tenant in any court under a bankruptcy act or for the appointment of
a trustee or receiver of Tenant's property either before or after the commencement of the lease term, or if
there shall be a default in the payment of rent or any part thereof for more than 10 days after written
notice of such default by Landlord, or if there shall be default in the performance of any other covenant,
agreement, condition, rule or regulation herein contained or hereafter established on the part of Tenant
for more than 20 days after written notice of such default by Landlord, this Lease (if Landlord so elects)
shall thereupon become null and void, and Landlord shall have the right to reenter or repossess the Leased
Premises, either by force, summary proceedings, surrender, or otherwise, and dispossess and remove
therefrom Tenant, or other occupants thereof, and their effects, without being liable to any prosecution
         19.      Notices. All notices, approvals, consents and other communications required under this
Lease shall be in writing and shall be deemed given: (i) when delivered in person; (ii) when sent by fax or
email: (iii) when sent by a nationally-recognized receipted overnight delivery service with delivery fees
prepaid; or (iv) when sent by United States first-class, registered, or certified mail, postage prepaid. The
notice shall be effective immediately upon personal delivery or upon transmission of the fax or email; one
day after depositing with a nationally recognized overnight delivery service; and five days after sending
by first class, registered, or certified mail.

Notices shall be sent to the parties as follows:

        To Landlord:     City of Muskegon
                         Attn: Mike Vandermolen
                         933 Terrace St.
                         Muskegon, MI 49440
                         Email: [email protected]

        To Tenant:       Muskegon Area Sports Hall of Fame, Inc.
                         Attn: Mike Mack
                         2660 Shadow Pine Dr.
                         Fruitport, MI 49415
                         Email: [email protected]

        20.      General Provisions.

                a.      Governing Law. This Lease will be governed by and interpreted in accordance
        with the laws of the state of Michigan.

                b.       Entire Agreement. This Lease constitutes the entire agreement of the paities and
        supersedes any other agreements, written or oral, that may have been made by and between the
        parties with respect to the subject matter of this Lease. All contemporaneous or prior negotiations
        and representations have been merged into this Lease.

               c.       Amendment. This Lease shall not be modified or amended except in a
        subsequent writing signed by all parties.

                d.       Binding Effect. This Lease shall be binding upon and enforceable by the parties
        and their respective legal representatives, permitted successors, and assigns.

                e.       Counterparts. This Lease may be executed in counterparts, and each set of duly
        delivered identical counterparts which includes all signatories, shall be deemed to be one original

                 f.      Full Execution. This Lease requires the signature of all patties. Until fully
        executed, on a single copy or in counterparts, this Lease is of no binding force or effect and if not
        fully executed, this Lease is void.

                                     {Signatures appear on the following page.}
LANDLORD - City of Muskegon            TENANT - Muskegon Area Sports Hall of

Narne:SJphenJ, Gawron
Title:   Mayor
                          <-~---       Fame,Inc.

                                       By: _ )r}
                                       Name: MfchaclMack

Date:      ID J/Cr/z'I        , 2021   Title:      P
                                                   _   resi1eny
                                       Date:       . . . .,1,_,.,lt__,_/J-.Jlqu...L-
                                                                                  1.,,_f_ _ , 2021

By: ~ ! \ ( ' \ ~
Name: Ann Meisch
Title:   Clerk     vf
Date:      .     1l 4    I9   ,2021
   Exhibit A
Leased Premises
                              ·SJ-~· ~ - · .                              .                    ~~L.£
                                                         ~ection 10s:;5                                            •


        Potential for SHOF
                                                   :::::.::::! _/
                                                   for photos and
                                                   signage in this area
                                                                                             u                                           WZ:Z.M

                                                                                                                             SHOF to coord. with wzzm for photo
                                                                                                                             wallpaper in this area
        dependent upon
        equipment placement
 :i                                      0                                                                                                                                             STRUCTURE
                                                                                                                                                                                       PROVIDED BY
      LJ\J_),                                                                                                                                                                (
                                                                                                                                                                                 [     ARENA-
                                                                                                    5/8" GYP BOARD
                                                                                                    OVER 1.5" METAL STUD                                                         '0    BYSHOF
                                                                                                    FURRING@ 16" O.C. ON EXISTING CMU WALL
                                                                                                    TYPICAL FOR ENTIRE LENGTH OF WALL TO SOFFIT

 G) Muskegon Sports Hall of fame Lease
      3/32" = 1'-0"

                                                                                    WZ:Z.M                               . ~.. 1µ
                                                                                                           Jlllgion 104-~r""'--____::::::;--...-:::::::::-~

                                                                                                                       TRANSPARENT GRAPHICS                         0
                                                                                                                       ON WINDOWS C O O R ~ . . NEW 7
                                                                                                                            LUMBERJACKS     ·   SMAR1

                                                                                                                       5/8' GYP BOARD OVER 1.5' METAL
                                                                                                                       FURRING @ 16' O.C. ON EXISTING
                                                                                                                       CMU WALL TYPICAL FOR ENTIRE
                                                                                                                       LENGTH OF WALL TO SOFFIT

                                                                                                                       DOORS IN
                                                                                                                       ATRIUM FOR
                                                                                                                       $HOF DISPLAY
                                                                                                                                        □□                          '

                                             FLOOR AREA OF LEASE: ---------'--===t-lJ
                                             AS INDICATED BY HATCHED AREA- SPACE
                                             ALSO AVAILABLE IN CENTER OF HALLWAY
                                             FROM CEILING DOWN TO 8'-0" A.F.F.
                                                                              0    Muskegon Sports Hall of Fame Lease .
                                                                              \cl·· 3/32" = 1'-0"                                                                                     08/26/21
                                                                                                                                                                        MERCY HEALTH ARENA
[!]                                                                                                                            [email protected]     231.557.0325            SD-0

Top of Page

Sign up for City of Muskegon Emails