03-14-1994 Council Minutes - Laserfiche WebLink

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MINUTES OF THE REGULAR ORONO CITY COUNCIL MEETING • HELD MARCH 14, 1994 ( #17) LEASE AGREEMENT WITH SCHOOL DISTRICT FOR BALL FIELDS - CONT. Mayor Callahan said we are relying on the subtenant to take care of all our obligations under the lease. Did you not consider it our obligation under the lease to construct a facility regardless if the subtenant constructs a facility? Did you consider what your responsibilities were? Moorse responded those issues were considered. Mayor Callahan repeated his question - does the lease provide that we will build a facility? Moorse said the language in the lease agreement provides for the tenant to build the facility which is the City. Mayor Callahan inquired if the City has general comprehensive liability to cover insurance requirements of the lease. Moorse stated the City has liability insurance. The contract attorney (Karen Cole from Popham, Haik) has advised that the City is covered in terms of the type of liability coverage needed. • Mayor Callahan suggested that the insurance company be asked to submit a letter to confirm coverage for this matter. Moorse said the lease can be canceled if OBA does not follow through with their agreement. Jabbour felt the City should have an escape clause. He asked the City Attorney if we have a legal obligation to fulfill the obligations of the lease. Staunton agreed with Moorse and Callahan and said damages would be whatever the terms of the lease which are only a $1.00. Hurr inquired about the status of the field if it was abandoned by OBA. Mayor Callahan replied the City is required to maintain it for the term of the lease. A potential problem exists if OBA does not raise all the money required to complete the project or if in the future, they do not have sufficient funds to maintain the fields. Randy Bosma, representative from OBA, said commitments have been received in the amount of $74,000. Hurr asked which cities did not contribute. • 15