Written lease agreement to supplant time-honored handshake
A lease agreement has been presented to the Stacy Lions Club covering Doyle Memorial Field and the Doyle Field building.
The city of Stacy and the Stacy Lions Club had operated under an oral or “handshake” agreement until the lease contract was presented. The Lions requested a written lease due to the time and money the Stacy Lions have invested in the property.
The Lions responded to the terms of the lease “mostly favorably.” The club asked for changes that included a longer term on the lease and a longer time to terminate with a provision that would require “term for cause.”
City Attorney Peter Grundhoefer recommended against the latter, saying it would create a long-term lease, allowing the period of time to continue indefinitely.
Grundhoefer said he felt five years is advisable in case the city wanted the land for other purposes. He said it would be more difficult to end a lease agreement that is written for a ten-year period. The Lions are agreeable to a one-year notice to terminate a lease.
“Right now we have no plans for it to be other than what it is right now,” Mayor Mark Utecht said. He agreed with a ten-year term lease and a one-year notice to terminate the lease. The mayor’s opinion was that a one-year notice would be sufficient in case of other development.
The city must give notice in the ninth year of the lease or there is an automatic renewal provision. “It’s fairly standard in a long-term lease,” Grundhoefer said.
Utecht disagreed with the automatic renewal provision, but said ten years is an acceptable. The council will review the lease agreement at least every ten years.
Grundhoefer said he would make changes and return the agreement to the Lions Club. It is anticipated the city and the Lions will approve changes and the lease will be considered for adoption at the Nov. 13 council meeting.