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HomeMy WebLinkAboutRESOLUTIONS-2009-050-R-09• 6/8/2009 50-R-09 A RESOLUTION Authorizing the City Manager to Renew the Lease for the Continued Use of Property at Sherman Avenue and Lake Street As a Public Parking Lot (City Lot 14) WHEREAS, the City of Evanston previously had an initial twenty- five year lease with the option of two ten-year lease extensions with the Hotel located at Sherman Avenue and Lake Street for use of their property as a public parking lot known as City Lot 14; and WHEREAS, the first optional ten-year lease extension expires on June 30, 2009; and • WHEREAS, the parking space afforded by City Lot 14 is necessary and essential so that adequate off-street parking can be provided in this business area; and WHEREAS, the City Council finds that the best interests -of the City of Evanston and its residents will be served by the continued leasing and use of this parking for the public; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EVANSTON, COOK COUNTY, ILLINOIS: SECTION 1: That the City Manager is hereby authorized and directed to issue notice, and the City Clerk hereby authorized and directed to 10 attest on behalf of the City, that the City of Evanston is exercising its option in the 50-R-09 lease by and between the City of Evanston, as Lessee, and Evanston North Shore Hotel Partners, as Lessor, for certain property commonly known as City Lot 14 for an additional term of ten (10) years at a rental rate of one dollar ($1.00), payable each year on the anniversary of the term pursuant to the terms of the original agreement (Exhibit A). SECTION 2: That the City Manager is hereby authorized and directed to negotiate any additional conditions or terms on the lease for aforesaid property as may be determined in the best interest of the City. SECTION 3: That this Resolution 50-R-09 shall be in full force and effect from and after the date of its passage and approval in the manner provided by law. At f� Ci Edney GronE4Ci Clerk Adopted: �� , 2009 J Eliz'Aeth B. Tisdahl, Mayor • • • —2— 50-R-09 • Exhibit A n LJ • Contract for the Sale of Real Estate, Rider and Lease of Parking Facility by and between the City of Evanston, as Lessee, and Evanston North Shore Hotel Partners, as Lessor, dated January f0, 1972, for certain property commonly known as City Lot f4 -3- CONTRACT FOR SALE OF REAL ESTATE 234581'77 P & S Management Co., Inc., an Illinois corporation _INurcLaser(s) ) } FM licreinnfler rclirri d to as Purchaser, agtrcs to purchase fur a juice of s,4 62, OOQ . 0 0 ^r. lhr. teens set f il�'A hrrc:n, the following described real estate, in Iht County e( COOk , State of Illinois. 1 00 LEGAL DESCRIPTION SET FORTH ON SCHEDULE A HERETO Crnnusonly known n!✓ Northeast Corner of Lake Street and Sherman Avenue, Evansi-on ,I1. •. .• r ,• z City'of Evanston, an Illinois municipal corporation tScllcr(s) hereinafter referred to as Seller, agrees to sell the real estate ai, , i , described above at the price and terms act forth harin and to couve , or eanse to be conveyed to the purchaser or nominee a good tide thereto by a recm•dablc Warranty deed ..r,... .._ ....r.•., .. .. ,•r. r + nrbjrct only to: '. .. .. -. .• .. . . •• .. .. .. r ., r, ..... .r ()I) general imesrfm• the year 1972 Ind subryucnt years; and to covenants, conditions and restrictions of record which will not interfere with or inhibit the development of slid property as contemplated hereby. Purchaser has dcnosWtd with Seller a Letter of Credit or Bid Bond in the zlnount of $46,2D0.0 . to.,serve. r . . , •. . "- • ? as earnest wooer to be applied on the I rehma• u-ice, and agrees to pay or satisfy the balance of the purchase price, plus or minus prorations, at the time of closing as f lloes: (,Irikr rabpa..+s•,gJ, r,.I a/•IX Ur) (.)The payment of 5153,000.00 and the cancellation of the letter of credit ,.,,ox bid bor)4 set .forth ,abctve..._. ,.. • «cr ;ng a principal indrbtrdnrss (trhirb nr Purebasrr [dues) [does not) agree to ..same) agrrcgating a `--.ring interest at the rate of a year, and d• uyment af: suut schieh rrpresenu Elm difference between the amount due on dtc indebtedness at the thnr ofelosing and Elie Lalanee of d nrrchasr price. <. T..is contract is subject to the condition that Purchaser be able to procure within Maya a into commitment r a loan to be secured b a snortgagc or trust deed mt the real rstate in the amount of e • , or such lesser sum as p uaser accept; with interest no: to eseecd ri. a year to Le amortized over years, the str ice eharees fsr such Ir• not to esceed r _;�. ahcr tanh(ng every rea29. 'AI,IC of fft, Purchaser is unable to procure such eonmnitment tathir, des c srrcilicti herein and so uotirr s l sbcr •of within ibm time, and if Cdler teid,in n like perind of time ApHowing the lrnrehaser's not;• ..n�lrroeure for Purchaser such a commit- ment ar notify purchaser ll'.at Seller will .crept a purchase money morigatiC upon the r- lo•n:t, this euntract shall become nyll and vaid and all csrnat money shall be rerun ed to PureLarer. if Sell---r does so rrutify Purchn- .:at Srlh:r v. l accept saitl purchase mone••mungal;e, S,:ilcr make, as of thu date of this contract and as of the date Seller se 1w64cs 1' i ar, dK warrsaty rc-rfuired by eonrlidon (it) hucof, unless thug is attad,rd to this contract or incorporated herein the eenir,eatc of cr I itu,cc doscriLud in condition (h) of this contract. By giving sai, notice that Scllcr will accept said purchase money marigagc, Seller c" , It the date of July such certilicatc of compliaucc or any list of notices of viola- , , buns attached to this contract or incorporated hocin to ' .,rude the date Sellcr notilics Purchaser that 601cr will accept said purchase money mortgage. (tu ilr paragraf4 if i+rapplicadlc) 5. The tlmc of dosing shall be or , or 20 days after notice that foaming has been procured if paragraph 4 is oper- ative (whichcv ct date is late), wtlesr!• '.,eyuunly mutually agreed otherwise, at the office rr oI of the mortgage lender, if ar• rvridcd tide is shown to be good or is accepted by Purchase. • 6. Seller shall deliver posse '.n to Purchscr on or befor- days after the sale has been closed. Seller agrees to pay Ptrrehaser the sum of 5—_— for each day Scller rentairu in posseasion behveur the time of losing and tl.e time possessir,n is delivered. 7. Seller a� er .. pay a bmkcr's eommiuian +^ 8. The eJtrnedl nruacy shall be held by_S..@jj_er" for he mutual botc6t or the panics. 9. If Sclltr has not agrtd to this contract within_•21--days, Purchasur's olrcr as eonta:acd hrrcin shall be cortsido'cd null and void. M Thies contract is suhicct to the Gniditiortc set forth on the reverse side hereof, and to p:arnpnphs.lIIC.QrFA� atG.d____ on the reverse side hereof, all of which Condiduus, and additional lirovisjuns, if ally, are tnado n parr of this contract. f :tjry Datcd January I1972 P & S MANAGEMENT CO _TC. CITY OF EVANSTON � 2ATTEST: esident .(se)er) cretary By: irteu aor lie Snyderman oreman 'Deputy city er Drive ATTEST: C . P/►ti2 r�aJ/4 Cler 1.y�, ].11ireis (,,� 1501 Oa Avenue Evanston, Illinois (OVI:1L) `.VI\L It Ii.JI\sJ r. ,.tidier ahodl deliver or c rise to be d,•iisv-scd tv Pmchamr or Purrhw-c s al3rut, nut Icra th:m� O Jays prior lir thr time or Closing, a title eom, riitmri,t fur :m owners title invrranrr policy isant•d by 11,10Nccl, NATIONAL TITLE INSURANCE. COMPANY •• ' ' '' ' t" In it,,- amount air the purcltaw price, Coverihl; this: Its Um renl ratite un or after the • date het —col" Awwinc title in :lie ilm"'ded granter sulijees only to.(1) the eunditiottc and taipulathms and standard or gn.cral excrptlom cont.,ined in tit oiivler s I.Micy issued by tltas ce,mpony, (2) the tidy exe••ptiuns set (rill alwer, atd (3) bile exceptions which may br irntusvil Iry tsc payotcni of money m the tittle of clear:: and ithic;r the Srllrr cony so irmovr at that time I.y uaiug iiw (.ands Ia he pai,t upon the delivery of the deed. Limy title iummiiwcnt furnished by she sel!cr hereunder skill lies conclusive caidIc— of good title ni thercan sl,utvn, subject only to rxreptimis as therein staled. •• r . • • . .. r Scller also shall furnish 11-ehaser rut affidavit of t.tic covering the time or classing, subjuet only to the tide es.ccptions pernliutd by ibis contract. b. if the tide commitment d'acluscs exceptions relating to title other iltan those referred to in the preceding paragraph, Seller shall have 30 days front the date of the delivery to Purchaser thereof to have these exceptions removed from the commitment. lr SA:or fails to have these exceptions reinovcd within this time, purchaser may terniinair this contract or cosy elect, upon notice to Scller within 10-days after the expiration of die . -day period, to take title as it then is .with the right to deduct from the purchas,• price liens or cnrp+nbran.!m of a ddivilr or ascertainable -mount"•" .. . r ' Or may pursue any other remedies hereunder, at law or in equity. C. t. .. i .. I . , • I . . . _ ., . , . • . ' . . . , ., general taxes, . L-44* A ' ^ - • 'd " ' ' .. and other similar items shall be adjostrd rutaldv as of the Brno orelnsing. Ir the amount of Use currant central taxes is not then ascer-tzi:wble, the adjusimcut thereof sh.4 be ail the basis of rut amount of the must recent asecrtainahle taxes. N,wi.•S • ' ' - s Scller rhall pay the amount of any stamp tax imlaued by Jaw on the transfer of the tide, and shall furnidi a completed Real Estate Transfer Declaration signed l.y Uic Scllevor the Scllcr'sageast in the foram rc- quIred pursuant to the Real Lstate Transfer Tax Act of the State of Illinois. (111. Rev. Slat., chap. 320. par%. '001 ei seq.) c. If this contract is terminaicd without rurehawr's fault, thr earnest moray shall be returned to the Purchaser, but if the termination is caused by the 11--chaser's fauh, t,en upon entice to the Purcli: ser, the carnsat money ilrall be fairciied to the Seller and applies! first to die payment or Srller's expenses •' '..; the balance, if any, to be retained by the Seller as liquidated drainages. E At the election of St•ller or Purchaser upon notice lr, the other party not less than 5 days prior to the time o;' closing, this sal.- slap be eloerd • t%re,ugh an oseruw soith PIONEF,R NATIONAL TITLE INSURANCE COnI l'ANY : ' .. ..' _ :.. . . . _...., ....r • ` in sre—danee with the general p: a.isions of the usual foram of llced and hfuncy Ease raw Agrecnsaist then in use by said side luxuranec company, and with such epcdal mvvi,iorss insancd in the tswvw agreement res may br, rcquirtd io conform with this contract. Upon the creation ofsuch an servo•, anytliing hcrcin to the contrary nolwithstanding, payment ad purchase price and delivery of the deed blial, be made thruugh the escrow and olds contract rind the earnest money -baU Ise deposited hs the escrow. The cost of the escrow shall be divided equally between Seller and purchaser. (itrike fcrograph if ins/•ph aUr) g. 7 isne is cf the css:ncc of this contract. 11,•1967, as amended (111. Rev. Stat., chap. 29, pars. 8.21, 8.22), unless there is attached to this contract or inr,•-••^• ­111 v,c rcttii .-LC of compliance provided fur by section 2 of said net, Seller warrants that no notice. fine* - . , ,,;.fit or other go%ycr meriial authorky ore dwelling code violation ss'bieh existed in the thvelline ciruco• ' ,,,,, contract seas txecmed has been received by S_ ice, lass p+inupnl, if any, or his agent, if any. wiih:ai I— : .... ..,r dine of execution of this contract, except w set forth in any list attached to this contract or incurp rated i. All notices herein required shall be in writing and shall be served an the parties at the addresses following their signutdres. The mailing of a notice by registered or certified mail, return receipt requested, shalt he sufficient sen•iee. THIS CONTRACT FOR SALE OF REAL ESTATE IS FURTHER EXPRESSLY MADE SUBJECT TO THE ADDITIONAL TEPUIS, CONDITIONS AND PROVISIONS SET FORTH ON THE RIDER AFFIXED HERETO AND INCORPORATED IiEREIN BY THIS REFERENCE. 11. } � r � p-•1 r Pioneer National Title Insurance Company COON COUNTY • LiRV WS.K9C1< OLDC.. OU PACE CUUNTc LAKE COUNTY s'30 NAPERVILLE T. COUNTY & I.sADISON "TS. G9 WEST WASHINGTON ST. C WHEATON, ILL. G0107 WAUn 17.G^N, ILL. G00.35 TELEPHONE (3]2) GG5'4300 TELEPHONE {3]2) 991i-0s;;00 PHONLL ( 17) 34G T 3282 j�. MCmEar of Amcnu'6 la ra Clll titan Ins vra nca Droop RIDER AFFIXED TO AND INCORPORATED IN • CONTRACT FOR SALE OF REAL ESTATE DATED JANUARY tO , 1972 BETWEEN THE CITY OF EVANSTON AND P & S MANAGEMENT CO., INC. 1. Purchaser shall have no obligation hereunder and particularly shall not be obligated to consummate the purchase and sale of the real estate until ninety (90) days following the last to occur of the following events: (a). Purchaser shall have obtained a firm commitment from Holiday Inns,.Ine. for the issuance to Purchaser of a license to construct and operate upon the real estate a motor hotel under the Holiday Inn system; (b) Purchaser shall have obtained a firm commitment for a permanent mortgage loan in an amount not less than $2,500,000.00, bearing simple interest at a rate of not more than 9-1/2% per annum, payable in 300 equal monthly installments of principal and interest which loan shall be secured by a first mortgage lien on the real estate and improvements (exclusive of trade fixtures), without personal liability; and (c) Purchaser shall have obtained a firm commitment for a construction loan in an amount not less than $2,500,000.00, bearing simple interest at a rate per annum of not more than 2% over the prime rate of interest from time to time charged .by the First National Bark of Chicago, on short • term borrowing by its most credit worthy custo- mers, which loan shall be secured by a first mortgage lien on the real estate and improvements (exclusive of trade fixtures), without personal liability. The aggregate mortgage broker's commissions, standby fees and commitment fees with respect to said construction and permanent mortgage loans shall not exceed $75,000.00. Purchaser shall proceed with due diligence and in good faith to obtain the aforedescribed commitments, and in the event that such commit- ments are not obtained within 180 days from.the date hereof, this Contract shall be null and void without further action of the parties and the earnest money shall be forthwith returned to Purchaser, unless prior to the expiration of said 180 days, Purchaser shall agree in writing to purchase the real estate in the absence of one or more of such commitments. Closing shall take place upon the completion of said Ninety (90) days or at some earlier date after the occurrence as stipulated herein, upon the mutual consent of the parties. follows: 2. seller represents and warrants to.Purchaser as (a) That on or before the closing of the transaction • - 2 - • contemplated hereby, the real estate shall be zoned in such a manner as to allow the construc- tion and operation thereon of a motor hotel and related facilities as contemplated hereby; and (b) That, subject only to compliance with the usual and customary requirements of the Seller's mun- icipal ordinances uniformly applied with respect thereto, Seller shall issue all building, drive- way, canopy, sign, swimming pool, recreational, sewer and water tap -on, business operation and other permits and licenses required to construct and operate the facilities and improvements to be constructed on the real estate as contemplated hereby. 3. Purchaser covenants and agrees with Seller as follows: (a) Pursuant to Seller's Ordinance 81-0-71, Purchaser submitted with its bid dated November 29, 1971, preliminary plans describing the manner in which Purchaser proposed to develop the real estate with a motor hotel containing at least 150 lodging rooms, related restaurant, banquet and meeting facilities and parking facilities. Within 180 days following satisfaction of all of the conditions set forth in paragraph 1 of this Rider, Purchaser shall submit specifications and working drawings to Seller describing in detail the improvements to be constructed upon the real estate, which shall be generally consistent with said preliminary plans and shall conform requirements and standards of the Build.: - C_-3-_ of Seller. Said working .drawings and specifica- tions shall be prepared and certified by an architect licensed in the State of Illinois. (b) Within 360 days following satisfaction of all of the conditions set forth in paragraph 1 of this Rider, Purchaser shall commence or cause the commencement of the construction of the contemplated improvements upon the real estate and shall cause the completion thereof with due diligence, acts of God, strikes, lockouts, material shortages, unusual weather conditions and other causes beyond the control of Purchaser considered. . (c) Seller shall be named a co -obligee on all performance and payment bonds furnished to the construction lender in connection with the improvement of the real estate, or the lender shall provide a letter asserting that adequate loan balancing dollars are posted with the lender to the extent necessary to complete the project in accordance with the approved plans and specifications. (d) Seller shall be entitled to retain possession Of the real estate and continue to operate a municipal parking facility thereon, notwith- standing closing of the transaction contemplated hereby, until it shall receive from Purchaser • 15 days advance written notice to vacate the - 3 - real estate, whereupon Seller shall vacate the • real estate and tender possession thereof to Purchaser within said 15-day period. Purchaser shall withhold service of such notice until 15 days prior to its anticipated construction com- mencement date. During the period, if any, that Seller shall retain possession of the real estate subsequent to closing, as aforesaid, Seller shall be obligated to (i) maintain the real estate in good order and condition, (ii) indemnify and hold Purchaser harmless from and against any loss, damage or expense it may incur as a result of any act, omission, accident or occurrence upon or about the real estate, (iii) provide Purchaser with a certificate of insurance containing rea- sonable.limits of liability with respect to its use and occupancy of the real estate, and (iv) maintain and pay for all utilities. 4. Included within the improvements to be constructed upon the real estate is a first level parking facility, more definatively described in the aforedescribed preliminary plans. Said parking facility shall be constructed approximately four feet below street grade and shall contain sufficient area to accommodate at least 117 automobiles. The parties have deter- mined that it will cost $309,000.00 to construct said parking facility, and in consideration for the agreement of Purchaser to construct and lease same to Seller, as hereinafter provided, Purchaser shall be entitled to a credit against the purchase price at closing in the amount of $309,000.00. In the event that the cost of constructing said parking facility 'exceeds $309,000.00, Purchaser shall be solely responsible for the overage. There shall be due and owing to the Seller an amount equal to $15,000.00 per annum prorated from the termination of the parking use to the time when parking use is restored, which shall be paid to the Seller at the time the parking garage is made available to it. Upon completion of the improvements to be constructed upon the real estate contemplated hereby, Purchaser shall lease said first level parking facility to Seller in accordance with the terms of the Garage Lease affixed hereto as Schedule B and incorporated herein by this reference. Said Garage Lease shall be completed to provide for a 25-year term, commencing on the date that the subject parking facility is tendered to the Seller: Said Lease shall further provide for two options to renew said Lease for a period of 10 years each, which may be exercised by the Seller under the same terms and conditions of the Garage Lease. At the end of 25 years,- the Seller agrees to subordinate its lease to any refinancing by the Purchaser and the Purchaser agrees to the following: (a) Purchaser sets aside $309,000.00 in an interest bearing escrow account, with the interest running to the benefit of the Purchaser. Seller shall have the right to that $309,000.00 if the 10 year options to extend are not renewed. (b) Seller may cancel the lease upon 30 days notice at any time and obtain the $309,000.00, less $5,000.00 for each year after the first 25 year period. (c) Purchaser shall have the right to withdraw $5,000.00 a year from the escrow account. - 9 - • If all options are exercised by the Seller, the Seller gets all residual dollars in the escrow account, which would be $209,000.00. Executed counterparts to Schedule B shall be exchanged by the parties hereto upon completion of said facility. At such time as the Purchaser shall determine that it no longer wishes to operate a hotel on the subject premises and wishes to sell the property for any use which would result in the discontinuance of the parking facility, the Seller shall have the first right to purchase the subject property for a 30-day period, at fair cash market value. 5. Purchaser shall have the right to assign all of its rights hereunder to a partnership, limited partnership, joint venture, trust or other entity of which Purchaser and/or James L. Schwartz and Marshall Padorr, the principal shareholders of Purchaser, are the general partners, controlling shareholders or have working control through equity ownership or otherwise; provided, however, that said assignment shall not relieve Purchaser of any of the obligations or duties incurred by it hereunder. Purchaser agrees it will not sell the equity of the property for a use which is tax exempt, except with the consent of the City Council. Attest: • / �'Secreta y Attest: 0 Clerk P & S MANAGEMENT CO., INC. By �1 n . _ Q��. d [1.'4. President CITY 0 By F EVANSTON • �os.+r_ �.r., flayor The East 40 feet of Lots 5 and 6 in Block • 29 in the City of Evanston in Section 18, Township 41 North, Range 14, East of the Third Principal Meridian, also the West 100 feet of Lots 5 and 6 in Block 29 in the City of Evanston, all in Cook County, Illinois; Lots 7 and 8 in Block 29 in Evanston in the South West quarter of Section 18, Township 41 North, Range 14, East of the Third Principal Meridian, in Cook County, Illinois; and Lots 9 and 10 in Block 29 in Evanston in Section 18, Township 41 North, Range 14, East of the Third Principal Meridian, in Cook County, Illinois. • SCHEDULE A • LEAS OTF PARXING FACILITY • =HIS INDENTURE, made this day of January, 1972; 11ITNESSETH : ' P & S MAN2%GEMENIT CO. , INC. , an Illinois corporation (or successor in title), Lessor, hereby leases unto the CITY OF EVANSTOi', an Illinois municipal corporation, Lessee, and the Lessee accepts the premises known as the entire first level parking facility located in the Holiday Inn -Evanston, situated at, the northeast corner of Lake Street and Sherman Avenue, Evanston, Illinois, for a term of twenty-five years, commencing Llk I , 197 �-1 , and ending T'i, I;r- '2hc .19' - , unleS sooner terminateii as. provided herein, �o he occupied and used by Lessee for the operation of a municipal parking facility and no other purpose. In consideration thereof, the parties covenant and agree:. 1. Lessee shall pay to Lessor, or its managing agent, in coin or currency which at the time or times of payment is legal tender for -public and private debts in the United States of America, at 9950 West Lawrence Avenue, Schiller Park, Illi- nois, or elsewhere as designated from time to time by Lessor's notice, the sum of•one Dollar ($1.00) per year, payable each year on the first day of every anniversary of the term. 2. Lessor shall furnish source of electricity for light and power in the.parking area in accordance Filth the plans heretofore submitted to Lessee, 'and nothing shall obligate Lessor to furnish additional electrical service or capacity. Any additional electrical service -load or capacity required by • Lessee to be brought to the premises or floor of Lessee shall be provided by Lessee at Lessee's expense upon prior written approval of the Lessor. A separate meter shall be provided to measure the Lessee's electricity. 3. Lessee shall be responsible for maintenance, repair and operation of said.parking facility and shall maintain said facility in a'safe and clean manner. 4. Lessee shall not -assign or -convey this lease or any interest under it, allow any.transfer hereof or any lien upon Lessee's interest by operation of law, sublet the premises or any part thereof, or permit the use and occupancy of the premises or any part thereof by any other than the Lessee. B. Lessee shall not hake any structural alterations in or additions to the premises without the Lessor's advance written consent. If Lessor consents to such alterations or additions, before co;nmencement of the work, the Lessee shall furnish Lessor with plans and specifications, naves and ad- dresses of contractors, copies of contracts, necessary permits and indemnification and waivers of lien against all claims, costs, damages and liabilities which may arise in connection r;ith the alterations or additions. These requirements shall not apply to ordinary naintenance. 6. Subject to the ,terms and provisions of this contract, the Lessee shall at its own expense keep the premises in good order, condition and repair during the term, and shall • operate said parking facility in accordance with all applicable fsta'-utes and ordinances. SC2'EDUI E B -z- 7. Lessee hereby grants to Lessor the right, priv- • ilege and cption to reserve the exclusive use of not more than 45 parking spaces within the garage for a monthly rental of Fifteen Dollars ($15.00) por space. The location of said spaces shall be mutually agreed upon. Lessee further agrees to use its best efforts to provide a rinimum of 15 additional spaces at such location as it may designate in the garage. Tihe compensation for such parking spaces shall remain the same for at least five years, at v.,hicih ti.�me the payment per space may be renegotiated, but in no event shall the payment exceed maximum rates in :municipal barking facilities. B. Lessee dgrees to indemnify and hold Lessor harm- less from and against any damage, loss, cost or expense Lessor may suffer or sustain by reason'of any act, omission, occur- rence or accident upon'. -or about the premises demised thereby, except for damages, loss, costs or exvenses caused by acts of the Lessor or its agents; employees or contractors. Lessor further agrees to indemnify the Lessee for any damage, loss, cost or expense the Lessee may suffer by reason of the negli- gence of the Lessor,- its agents, employees or contractors. Lessee further agrees to continuously maintain and deposit with Lessor during the entire term of this lease, public lia- bility insurance indemnifying Lessee and Lessor against any damage, loss, cost or cxpense either of them may suffer, sustain or incur by reason of any act, omission, occurrence or accident upon or about the demised premises, containing limits of lia- bility of not less than $1,000,000 in connection with any one accident or occurrence, $500,000 for injury or death to any person, and $100,000 for property damage. Said insurance shall be written in companies approved by Lessor and the duplicate originals of the policies, together with satisfactory evidence of the payment of premiums thereon, shall be continuously deaosited with Lessor during the term hereof. Lessor hereby • agrees to continuously maintain and deposit with the Lessee, during the entire term of this lease, fire and casualty insur- ance of an amount equal to a minimum amount inexcess of $400,000.00 over the first mortgage. . P & S I,_'kNAGEMZM7 (CO. INC. By /I President At` st: V i .ice �X�.. -� Se retary CITY OF EVANSi 9 By 4•;ayor Attest: (� Clerk •