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HomeMy WebLinkAbout1999-01-11 99-57 ORDERCOUNCIL ACTION Item No. 99-57 Date ganuary 11 1999 Item/Subject: Authorizing Renewal of Bangor Raceway Lease Agreement Responsible Department: Legal Commentary: The City currently has a lease of the Bangor Raceway with Bangor Historic Track, Inc. The Lease calls for annual renewals, upon the request of the Tenant. The tenant has requested a renewal of the lease, under the existing terms and conditions. This Order approves the renewal Manager's Comments: 7)OuoL;t -i0� q/�N-N &W,�WL*B d tS winb,q'%,� ✓�lPn1L W`� A'OL50 p"Aw+uIW'a'WIA\ =t.'/�s.� Ci f CLit�yA Manager Associated IIn-formation: Order Finance Director City S vv 1 ol'c'tor Introduced For CONSENT AGENDA Passage First Reading Referral Page 1 of 2 UP 99-5] Mammal to Cotmcdor CITY OF BANGOR (TITLE.) (Orba, _. Author";Lng.Execution of_Leaae Agreement with _. --Bangear Historie--Track, Inc. d/b/a Bangor Raceway 11 1 By dw City Coundl of aty ofBamsT: ORDERED, TEAT the City Manager is hereby authorized, on behalf of the City of Bangor, to execute a lease agreement with Bangor Historic Track, Inc., doing business as Bangor Raceway. A copy of said lease agreement is attached hereto. The final lease agreement shall be substantiallyin the form as attached, the final form to be approved by the City Solicitor's office. (TITLE.) Wri 99-5) Auigned to Councilor Palmer lamnnry 11, 1999 CITY OF BANGOR Authorizing Renewal of Bangor Raceway Lease Agreement By the Eery CoawB 6f dw My ofBam Pn ORDERED, THAT WHEREAS, the terms Of the current Bangor Raceway Lease Agreement provides for an annual renewal at the request of the Tenant; and WHEREAS, the Tenant has given a Notice of Renewal to the City; and WHEREAS, the Tenant is not requesting any changes to the terms Of the Bangor RaCeway Lease Agreement, NOW, THEREFORE, by the City Council of the City of Bangor, be it ORDERED, THAT the Bangor City Council hereby authorizes renewal of the Bangor Raceway Lease Agreement for one year under the same terms and conditions as the current. Bangor Raceway Agreement. IN CITY COUNCIL January ll, 1999 Motion to Amend by Substitution Made and Seconded Motion Passed Passed as iaended by Substitution CITY 4Em 99-5] ORDER Title, Autboriaing Heueval of Bangor Raceway Lease Agreement ...................................... .v,( G. aW�eam Councilaan hts KK t hts BANGOR RACEWAY LEASE AGREEMENT The CITY OF BANGOR, a municipal corporation organised and existing under and by virtue of the laws of the State of Maine, and located at Bangor, Penobscot County, Maine (hereinafter referred to as the "CITY") and BANGOR HISTORIC TRACK, INC., a Maine corporation, doing business as Bangor Raceway (hereinafter referred t0 as "TENANT") W I T N E E E E T H: WHEREAS, the CITY is the owner of a harness racing facility located in the City of Bangor at the CITY'S Bass Park Complex; and WHEREAS, the TENANT wishes to lease the CITY's harness racing facility for the purpose of conducting an extended harness racing meet for the calendar pear-3998-racing-seasen-end subsequent -seasons; years 1999 through 2001 racing seasons. NOW, THEREFORE, the parties hereby agree as follows: 1. Premises. The CITY, for and in consideration of the rents to be paid and the obligations to be Performed by the TENANT s hereinafter Provided, does hereby demise and lease unto the TENANT and TENANT does hereby take and hire, upon and subject to the terms and conditions hereinafter stated, in their present physical condition, and for the periods hereinafter stated, the following described premises and facilities located at the CITY's Bass Park Complex, as further designated in the sketch attached hereto as "Exhibit 1": Area THIS AGREEMENT, executed in duplicate, this day of MaxeX7-1998 January. 1999, by and between: Barns March 1 through October 15 The CITY OF BANGOR, a municipal corporation organised and existing under and by virtue of the laws of the State of Maine, and located at Bangor, Penobscot County, Maine (hereinafter referred to as the "CITY") and BANGOR HISTORIC TRACK, INC., a Maine corporation, doing business as Bangor Raceway (hereinafter referred t0 as "TENANT") W I T N E E E E T H: WHEREAS, the CITY is the owner of a harness racing facility located in the City of Bangor at the CITY'S Bass Park Complex; and WHEREAS, the TENANT wishes to lease the CITY's harness racing facility for the purpose of conducting an extended harness racing meet for the calendar pear-3998-racing-seasen-end subsequent -seasons; years 1999 through 2001 racing seasons. NOW, THEREFORE, the parties hereby agree as follows: 1. Premises. The CITY, for and in consideration of the rents to be paid and the obligations to be Performed by the TENANT s hereinafter Provided, does hereby demise and lease unto the TENANT and TENANT does hereby take and hire, upon and subject to the terms and conditions hereinafter stated, in their present physical condition, and for the periods hereinafter stated, the following described premises and facilities located at the CITY's Bass Park Complex, as further designated in the sketch attached hereto as "Exhibit 1": Area Dates Track March 1 through October 15, but excluding July 27 through August 9 Barns March 1 through October 15 and a reasonable period before March 1 for preparation purposes -2 - Trailer Park April 1 through July 28 and August it through August 23 Grandstand March 1 through July 26 The track, trailer park, and grandstand, as well as parking areas, are specifically recognized as joint use areas as follows: a. Parking Areas. Parking areas will be available for e by harness racing customers as well as customers of other events held at the Bass Park Complex on a first-come, first-served basis. b. Trailer Park. The trailer park areas will be available for use by individuals associated with horse shows held in August or with harness racing on a priority basis during the Trailer Park dates indicated above. Any unused space during the Trailer Park dates will be made available for short-term use by others with the revenue from these users to go to the CITY. c. Track and Grandstand. The track and grandstand areas shall be available for use for other events prior to the date of commencement of the harness racing meet. The track and grandstand shall also be available during the race meet on non -racing days and after racing on any racing day where racing is normally scheduled to end by 6:00 P.M. Such uses shall be permitted provided that the track shall not be closed a than three days i any week from to horses for more April 1st to the date of commencement of the harness racing meet and no more than two days in any week during the harness racing meet. 2. Term. TO HAVE AND TO HOLD the demised premises unto the TENANT for an annual term commencing January lsfil$@$ and ending Beeember-33sl-ef-each-pear-!h}a-agreemenE-}a-}n-£exec October 15, 1999. PROVIDED, however, that TENANT'S occupancy and use of any of the facilities described above shall not begin prior to or extend beyond the periods stated in Section 1 above. Phis -Agreement -map De-renewed-m+nna3}p-after-lhe-inil3a}-term-foe-fhree-f3;-add€Eiefla3 TEN one-pear-terms-renewpose-of annualneon-mama}-agxeememl-ef-E£PY-and not require For the purpose of l Inco r walla;, the CITY shall not require additional rental ed elsewhere and above all amounts derived from the formulas stated elsewhere within this Agreement. 3. Rene. Provided that TENANT is Lot in default Of any material provision hereunder, TWkST shall have theoption extend this Lease for an additional buried of two (2)-YE2 TENANT's right to renewal shall be exercised by giving notice of renewal to the CITYin writing no later than October 1st preceding eaeh the renewal tem. Fa}}awing-xeee}pl-ef-each-eeE3ee-by-E£TY end-wilh}nlh3xfp-frm3B;-days-fhereafter;-E£PY-end-PENAHP-sha33-meet €ar-fhe-pnxpese-a€-diaenssing-renewa3-ef-fh3s-Agxeementr--Prov}dud PENANP-g}vea-aneh-lLme3p-ee!}ee-af-renewa3-fe-the-E£PY—Ehe-paxt}ea Sha}}-agree-ne-}aEex-than-Ehe-Beeember-}StA-preeed3ng-aep-renewa3 per}ed-le-the-texma-nnd-eend}f}oea-a€-anp-sneh-pexied-erfhta Agreement -sha33-be-deemed-1arm}naEed:--TEN.VIP-ahn33-naE-be-ent}t3ed !e-renew-ih}e-Agreement,-}f-PENANP;-eI-lhe i}me-a€-TENTNeof- aewa4-aeele;-sha3l-be-sn-deENANT-c£-sap prey}s}en-hereof: As a condition of renewal, TENANT shall a3sa expend €ram-itstaws-£nada a minimum of he o igB al Ando ce Year for facility improvements during the original the two year terms term of this Agreement and obtained by0 EN during the two v improve Private donations obtained by TENANT for facility e improvements shall be appliedtowards TENANT financialobligation herein € facility improvements. The CITY must approve any facility improvements. 4. Existing Facilities/Additions and Changes. No building or facility or any physical changes to any existing buildings or facilities may be constructed without the express written consent of the CITY. Such consent shall not be unreasonably withheld. However, the CITY may withhold its consent to any additions or changes which, in the sole opinion of the CITY, would have a negative impact on the use of the leased facilities for other events and purposes, or on the structural integrity of any building or structure. All additions and changes shall be made in accordance with the appropriate building and development codes, and TENANT shall be responsible for all necessary permits. It is understood and agreed that the CITY shall remain the legal owner of all buildings, structures, improvements, facilities and installations currently upon the premises or which may be erected upon the premises during the term of this Agreement or any extensions or renewals thereof. Equipment owned and installed by TENANT shall become the property of the CITY where such equipment becomes attached to and a fixed element of any building, structure, or facility. 5. Maintenance and Improvements. TENANT shall, at Its sole cost, provide all necessary maintenance and repair of the leased facilities, including the maintenance and repair necessary to keep the facilities in compliance with applicable fire and life safety Codes. TENANT shall maintain the facilities in accordance with first class standards comparable to other facilities in Maine and New England. The CITY and its designated representatives shall have a right of access to inspect premises and facilities and to order corrective measures. Formal inspections of the demised premises shall be conducted by the CITY on or about March let, during the week prior to the Bangor State Fair, during the week after the Bangor State Fair, during the week after September racing, if applicable, and during the first week of November of each year this Agreement is in force. The purpose of these inspections is to insure that the facilities are maintained in the mr better condition as existed at the start of the Agreement. In the event TENANT fails to make repairs or to keep the facility in a safe and sanitary condition, CITY shall have the right to enter upon the facility for purposes of making repairs and to charge the cost of such repairs to TENANT. Failure to adequately maintain the facility will be a basis for default and termination of this Agreement and forfeiture of performance bond. It is anticipated that the CITY will participate in the Cost of betterments or improvements made to shared -use facilities where such work benefits events or users of the facilities other thn harness racing. TENANT shall forward requests for such improve- ments or betterments to the CITY on an annual basis, on or about March 1st of each year, for consideration in the CITY's annual -y - budget process. These requests may include requests for pro- portional reimbursements for betterments already performed by TENANT. The cost of such improvements shall be shared an a 50/50 basis or such other basis as may be separately negotiated subject to City Council approval of the expenditure. The CITY may, at its own option, elect to proceed with its own betterments or improve- ments to shared -use facilities where Such work shall not have a negative impact on harness racing. The CITY shall inform TENANT i advance of planned improvements and shall coordinate their schedule with TENANT in order to minimize their impact on harness racing. TENANT may, at its own option, elect to proceed with its own betterments or improvements to shared -use facilities where such work has been previously approved by the CITY for construction but not for shared -funding. 6. Approved Uses. The primary use of the leased facilities will be for live harness racing and directly related activities and promotions including simulcasting. Other horse related events such as horse shows, sales, and demonstrations are permitted. TENANT shall have the exclusive use of the leased premises for these uses during the term of this lease agreement. Where such events occur on a stand-alone basis on the leased facilities and during TENANT'S occupancy period, net revenues shall be apportioned between the CITY and TENANT on a 75%/25% basis with the larger portion going to the entity which identifies and brings the events to the facility. The TENANT may request that he be allowed to use the facility for other licensed Maine Harness Racing Commission services, and if so requested, a separate agreement, subject to final approval of the Hanger City Council, may be negotiated by the parties. 7. Utilities. All utility expenses including water, electrical, telephone, sewer and waste disposal, required to operate the leased facility, shall be paid by the TENANT. TENANT shall pay CITY for all City -provided utilities at the same rates the CITY charges similar customers. The CITY and TENANT shall agree to a utility metering and/or cost allocation plan which will be implemented prior to March 1, 199E 1.99$. The purpose of this plan is to provide for a cost-effective plan for either separately metering the facilities to be used for racing or appropriately allocating utility costs based on actual use for racing and other events. 8. Taxes. Licenses and Fees. TENANT shall be responsible for any and all taxes and all required licenses and fees to operate the Facility. 9. Indemnification and Insurance. The TENANT shall indemnify, defend, and hold harmless the CITY from and against all claims and actions, and all expenses incidental to such claims or actions, based upon or arising out of damage to property o injuries to persons or other tortious acts caused or contributed to by the TENANT or anyone acting under its direction or control or in its behalf in the course of the TENANT'S activities under this Agreement, provided the TENANT'S aforesaid indemnity and hold harmless agreement shall not be applicable to any liability based upon the sole negligence of the CITY. The TENANT hereby expressly agrees that it will defend, indemnify and hold the City o£ Bangor harmless from any and all claims made or asserted by T_NANT's agents, servants or employees arising Out of TENANT'S activities under this Agreement. For this TENANT herebyexpressly Waives n all 1 1t have d M W rk ' COmpenSatjOn Act in regard[ h claims made O e ted by TENANT'S aagnLa. servants1 The indemnification provided under this paragraph shall extend to and include any and all costs incurred by the CITY to answer, investigate, defend and settie all such claims, including but not limited to the CITY'S costs for attorney fees, expert and other witness tees, the cost Of investigators, and payment in full Of any and all judgments rendered Sc favor of TENANT'S agents, servant=_ or employees against the CITY 'n regard to claims made or asserted by such agents, servants, or employees. a. In Connection w._- the employment of its employees. TENANT shall pay all applicable social security, unemployment, workers' compensation, or other employment taxes or contribuz ions of insurance and shall CO ..Ply with all federal and state laws and regulations r=_lat_ng t0 employment generally and to wages. social s rarity. unemployment ante and workers' compensation i particular. TENANT scall indemnify and hold harmless the CITY from all costs, expenses, claims or damages resulting from any failure of TENANT to Comply will these requirements. b. TENANT shall proccre and maintain tomnrehensive general liability and autcmoblle liability insurance on behalf of the CITY against any damage, loss or liability or claims alleged to have arisen from the use Or occupancy by TENANT of the raceway and related facilities. Wim`. respect to ilte r fired insurance, CITY shall be name1 as an addiconalninsured; be provided with a waiver c'_ subrogation in favor of the CITY; and shall be provide,. - with thirty (30) days notice of cancellation or material change; and s e provided, through the Office Or m:_ City solicitor. :lith certificates Of insurance evidencing the Save required insurance. The cost of such insurance s.`:3_l he paid directly by TENANT. The CITY reserves the richt to increase insurance levels at the time of any contract extension or option renewal. The amounts of s__h coverage shall be as follows: Tape Amount 1. Workers' Compensation $lM combined single Statutory Employers Liability 2. Comprehensive Public Sim combined single limit Liability to include with additional umbrella but not be limited to policy for not less than the following: $2M a) premises/operations b) independent contractor c) personal injury coverage d) product/completed operations e) contractual liability 3. Comprehensive Automobile S1M combined single limit Liability coverage to include coverage for: a) owned/renzed automobiles b) non -owned automobiles c) hired cars .. Standard Form Fire or Replacement Value .All Risk insurance Policy 56ould TENANT desire, CITY will entertain a request that Fire or All Risk Insurance be provided by the CITY and shall be paid, on an agreed oro -rata basis, by TENANT for those periods in which TENANT occupies the facilities. In the event of loss or damage to any portion of rhe leased premises due to f -ire or ct'.ar Casualty occurring during T=YANT's use Or occupancy. or occurrinz after TENANT'S use or occupancy as a result of the negligence or TENANT or TENANT's agents, servants, contractors, or employees. TENANT shall reimhurse to e CITY any portion of the CITY's ccs- of replacing or repairing the particular facilities Concerned tr.. is not reimbursed by applicable fire or all risk insurance. Each insurance policy procured by TENANT shall affirant've_y state that it will not be i -validated because the insured w— its riyais of recovery acaenst any party prior to the occurrence o'_ a loss. 10. _ ees and Independent Contractors. TENANT and '_-- employees shall operate as as independent contractor and neither TENANT nor TENPNT's employees shall be deemed in any manner to '-- agents or employees of the CITY. The CITY shall not be responsi^_le for TENANT'S financial obligations including, but not limited to, salaries and wages earned by employees, purse distribution and prizes won during the course of the racing meet, or amounts due independent concraccors, horsemen. vendors and patrons. 11. Co ' ,ance witri Laws. TENANT will comply with all federal, state and local statutes, rules, ordinances and regulations as they relate to the operation Of the raceway and related facilities. 12. Non -Discrimination. In conducting activities under this Agreement, TENANT shall not discriminate on the basis of race, color, sex, creed, religion, ancestry, national origin, age Or disability, or in any other manner prohibited by law, and shall not fail or refuse to hire an employee or accord adverse. or unequal treatment to any person or employee with respect to application, hiring, training, apprenticeship, tenure, promotion, upgrading, compensation, layoff, discharge or any other term or condition of employment in any manner Prohibited by law. 13. Catering. TENANT shall have the exclusive right to sell alcoholic beverages on the leased premises during TENANT'S occupancy thereof and shall :^ave the right to operate or let all food and drink concessions at the raceway where the provision of such services is for a racing event authorized under this Agreement CITY reserves the right to provide these services ar.A concessions for any event sponsored or permitted by the CITY. TENANT may exercise these rights directly or through an agreement with a reputable area concessionaire acceptable to the CITY. Should a concessionaire be selected, the Concessionaire must enter into an agreement with the CITY for the use of any Concession equipment or supplies owned by the CITY and for the nrovi=-ion by the concessionaire of insurance acceptable to the CITY tine guarantee Of necessary operating licenses, including a license -or sale of beer. The CITY reserves the right to require a reasona,�e payment for such equipment and supplies. 14. Sjj,C1haSe a, Ciw - mrv. TENANT shall purchase a maintenance materials and supplies on hand and owned by the CITY at the time TENANT assumes operation of the raceway. ?rice will be based on actual CITY costs. 15. Performance Bond. TENANT shall provide the CITY W_z an acceptable corporate surety bond in the penal sum of 530.000 payable to the CITY, or such other security as is acceptable to t._ City Solicitor, for the faithful performance of all duties and obligations imposed Upon TENANT by and under the terms of this Agreement. The CITY rs � es the right to require an increase the amount of this bonda' ' time of any extension or option renewal of this Agreement Sack increase shall be limited to no more than 258 of the amount in effect at the time. Bond or other acceptable security may be provided within ten (10) days of award of extended racing meet license to TENANT by the Maine Harness Racing commission. In addition to serving as a performance bond. this amount, if provided in an appropriate form acceptable t0 the City Solicitor, shall also f'fill the requirement outlined in Section 22 below `--or a DamaceDeposit A.ecentable security may include 2n 4rrevocable letter of credit or a Cash deposit Sa_d performance bond shall remain in force, at a minimum, until November 30th Of each year this Agreement is in force. 16. 4e=nor=ibil'tias of Tenant. Consistent with the tars of this Agreement, TENANT scall exercise sound business Judgment -E - cooperate with the CITY, and be open to the CITY's recommendations and advice. The CITY's and TENANT's specific responsibilities shall include, though not necessarily be limited to, the following: a, NeichbQrhood, Public Relations and Protection. TENANT is mindful of the impact of Facility activities on the immediate neighborhood and surrounding area. TENANT agrees to adhere to the following guidelines: i. No live race shall start after 11:00 P.M. unless, due to an unforeseen emergency such as, but not limited to, loss of power, loss of computer support to run the mutual area, facility accident, or loss of ambulance support, races are delayed. In such circumstances. TENANT shall make every effort to accelerate post times and to finish operating at a reasonable hour, in no case later than 12 midnight. ii. TENANT. in Conducting TEXANT's activities under this Agreement, _=hall take necessary steps to prevent generation of excessive noise. For this purpose. excessive noise shall mean noise of a volume, pitch or intensity likely to disturb the peace of ordinari occupants of residential properties surrounding the Sas Park Complex. iii. To the best of its ability, TENANT shall enscre that horse trailers and Facility traffic will comply with all applicable CITY rules and regulations. b. Pest Control. TENANT shall be responsible for all necessary pest control services. TENANT and the CITY may mutually agree to a proration of annual pest control services. c. Snow Removal. The CITY shall be responsible for snow removal service=_. d. Trash Removal. 4ENPNT shall be responsible for all waste and trash removal services, including removal and disposal of manure. e. Licenses and Permits. TENANT shall obtain and maintain all licenses and permits neces=sary for TENANT to ma.*.age and operate the Facility. Failure to meintai.^, the necessary licenses and permits to operate and manage t.` -e Facility shall constitute a bieaci of this Agreement. f. Fixed Asset I Ctorv. TENANT shall take custody but not ownershic, of its fixed assets of the Facility. T e CITY shall provide TENANT with a full and complete written inventory of structures. facilities, and improvements within the leased area. TENANT shall accept this fixed asset inventory and may request a physical walk through and verification with a designated representative of the CITY. Proper notations of any discrepancies shall be made and initialed by both parties on the written inventory. During their period of use. TENANT shall assume all maintenance and repair costs on such equipment. g_ prase Cuttins. The CITY will be responsible for all grass cutting throughout the property. 17, Security. TENANT will insure that adequate security is available for all events held at the Facility. TENANT shall develop, in cooperation with the Chief Of Police of the Bangor Police Department, a security plan for the Facility. This plan shall outline the level and type of security t0 be provided during racing. Uniformed police of'_icers shall be in attendance at all harness racing events. The number of uniformed police to be oresent shall be established in the joint security plan. In addition, the Chief of Police Of the Bangor Police Department may, at his discretion, require TENANT to provide a higher level of uniformed p0.!Ce t0 be present in Order t0 preserve order and protect lives and property. In the event of a dispute between the TENANT and the Cief of Police regarding the number 0 - uniformed police officers required, the dispute shall be submitted to the City Manager of the C_ty of Bangor whose determinac.on shall be final. Uniformed police security may be supplemented by using local contract security, TENANT's own security employees, or other sources of security service. The Chief Of Police of the City of Bangor shall retain the authority to direct TENANT to remove from this responsibility any individual engaged in providing security services for any reason. Its required security plans shall be developed and approved by T-VANT and the CITY within sixty (60) days Of the date of agreemen=. TENANT shall say the CITY for use of uniformed police officers at the same rate established by the CITY for such services provided to other parties. During any renewal period of this Agreeaent, TENANT and the Chief of Police shall meet to review w the previous racing season's security plan and shall agree On any modlficaCcna to said security plan necessary for the renewal period's race meet. Said meeting and agreement on necessary modifications shall take slate no later than thirty (3u) days prior to the start of said race meet. 19. Fire Protection. TENANT shall abide by all life safe.y and fire codes established by the State Of Maine and the CITY as interpreted and enforced by the Code Enforcement Of`_?cer of the City of Bangor or the State =ire Marshal's Office. 19. Bass Park Will. The property upon which Bass Parkis . located was donated to the CITY under pertain Conditions Outlined in the Will of J.P. Bass. Tie will essentially requires that the ME Bass Park property be maintained and used for public recreation purposes. CITY will provide TENANT with a copy of the Bass Will. TENANT agrees to abide by the terms and conditions of the Will in its operation of the facilities. 20. Payment to the City. TENANT shall pay the CITY a base fee of Thirty -Five Thousand Dollars ($35,000.00) for the right to lease and operate the premises. In addition to the base fee, TENANT shall pay to the CITY an additional fee amount to be determined as follows: If the a= of the average daily handles both on -track and at Maine Off Track Betting facilities wagered on TENANT'S races is greater than Fifty -Five Thousand Dollars ($55,000.00), the percentage amount by which said amount exceeds $55,000.00 shall be multiplied by the base fee to determine the amount of the additional fee. CITY shall invoice TENANT the full amount of the base fee on March 1;-1998 let of each Year of this Agreement or renewal thereof. TENANT shall pay the fee(s) in seven (7) equal monthly installments beginning March 1st. Any additional fees due will be calculated at the end of the 1998 Racing Season (July 28, 1998) and be payable by September 1, 1998 with the final rental installment. At the end of any month races are conducted on or at the leased premises, TENANT shall provide t0 CITY Copies Of reports required to be filed with the State of Maine reflecting all wagers placed or made at the leased premises, as well as all wagers made or placed at Maine Off Track Betting facilities on races conducted at the leased premises. The annual payment to the City may be renegotiated by the parties in the event TENANT has applied to the Maine Harness Racing Commission for fifteen (15) days of racing or less for that particular year. Provided, however, that the rental shall be based upon a per them for use of the racetrack and grandstand only on actual race dates. 21. Other Payments. In addition to any and all payments required elsewhere in this Agreement, TENANT shall expend twenty- five percent (258) of any payment made to TENANT under Title 8, Maine Revised Statutes, Section 275(0)(3), sometimes referred to an the "commercial meet stipend", on facility improvements during the calendar year in which such payment, if any, is received. 22. Damage Deposit. within two (2) weeks following the CITY 'a annual pre -race inspection of the premises (ie., the inspection which is to occur on or about March 1st of each year this Agreement is in force), TENANT shall deposit with the CITY the sum 0f Ten Thousand Dollars ($10,000.00) to be held by the CITY as a deposit against the CITY's cost of repairing any unrepaired damage to the premises caused by the TENANT, its employees, horsemen, vendors, harness racing patrons, or others using the premises during the harness racing season. Following the conclusion of live racing and prior to the start of the Bangor State Fair, the CITY shall also conduct inspections of the premises as provided in paragraph 5 above for the purpose of identifying any unrepaired damage to the premises occasioned by TENANT 'a use -11 - thereof. The CITY shall provide TENANT with a list of all such items of unrepaired damage, which shall be repaired by TENANT prior to the start of the Bangor State Fair, or within thirty (30) days of the CITY's notice to TENANT, as the CITY may direct. If not repaired by TENANT within such period, the CITY may repair or cause such items to be repaired, and may apply TENANT'S damage deposit as necessary for that purpose. As a condition of the annual renewal of this License, TENANT shall deposit with the CITY funds sufficient to restore the damage deposit amount to Ten Thousand Dollars ($10,000.00). Upon termination or final expiration of this Lease, and following repair of all unrepaired damage to the premises occasioned by TENANT'S use thereof, the unexpended balance of DEFIANT 'a damage deposit shall be refunded to the TENANT. Said damage deposit, whether included as part of the Performance Bond (Paragraph 15 above) or otherwise shall remain in force, at a until November 30th of each year this agreement is in force 23. Advertising. TENANT shall have the right to solicit and display advertising within and around the grandstand and on the raceway shadow fence. Such advertising must comply with the Advertising Policy of the Bangor City Council as currently adopted or as it may, from time to time, be amended. Any revenues derived from such advertising shall be prorated between TENANT and CITY based on the percentage of time such advertising shall be displayed during and outside TENANT'S period of occupancy of the facilities where such advertising is present. Any advertising which will be displayed beyond TENANT's period of occupancy must be specifically approved by the CITY. Any advertising to be provided in exchange for facility improvements must be approved by CITY, both as to content of advertising and overall payments or facility improvements to be provided. 24. Event Sian. CITY shall provide TENANT with the right to place an event sign adjacent to the Bass Park property at a location mutually acceptable to CITY and TENANT. In addition, CITY shall make space available on the Bass Park lighted marquee sign located on Main Street whenever possible. 25. Destruction frrto Premises, In the event that the leased premises or o any part of the leased premises shall be destroyed by fire, explosion or other casualty. or a need arises for substantial capital improvements so that all or a substantial portion of the leased premises cannot be operated, and the CITY or TENANT fails to rebuild, repair and reopen the same for business within sixty (60) days after the happening of said event, then either party shall have the right (but no obligation) to terminate this Agreement. 26. Termination and Default If TENANT fails to pay or deposit sums due within seven (7) days notice of such failure, o fails to comply with its other obligations under the terms of this Agreement, and the TENANT fails to cure such failure within thirty -12- (30) days after written notice. which notice shall specify in sufficient detail the specific circumstances so as to give the TENANT adequate notice and the opportunity to cure the same, the c1TY may upon expiration of such period terminate this Agreement. 27. No joint V Nothing contained herein shall be deemed or construed by the parties, nor by any third party, as creating the relationship of principal and agent or of partnership or joint venture between the nettles, it being understood and agreed that neither them shod of computation of rent nor any other provision nor any other acts of the parties shall be deemed to create any relationship between the parties other than that of landlord and tenant. 28. Non -Waiver. failure of either party at any time on enforce a provision of this Agreement shall in no way constitute_ a waiver of the provision, nor in any way affect the validity of this Agreement or any part hereof, or the right of such party thereof' to enforce each and every provision hereof. 29. Amendment.parties may amend this Agreement only by w-rtten agreement exeC.oSd =y the parties. 30. No Assicnmeea. TEHAN' shall not assign. sublet, sel_. transfer, or otherwise dispose of its interest in this Agreement without the prior written approve! of the CiTy. This A.goeemeet shall be binding upon and in to the benefit of the parties hereto, their successors and permitted assigns. 31. Zav�rabi; i v. -v provision of this Agreement declared invalid by a court of cor„petemt jurisdiction shall not invalidate the remaining provisions of this Agreement. 32. Governing Law. This Agreement shall be governed exclusively by the provisions ;-ereof and by the laws_ of the State of Maine. as the same may from cJme to t1 -.e exist. No spit she -- be brought by either party to enforce any of the terms or provisions of this Agre=ement, unless brought in the 3enob=_cot County, Maine District or S -_zips Court. 33. Notices. All notices required by this Agreement she' -- be in writing and shall be =_ fficiently given and served upon t e other party if sent by registered or certified United States postage prepaid, and addressed as follows: If sent to CITY: Michael Dyer, General Manager Bass ?ark Complex 100 Dutton Street Bangor. M= 04401 With a copy to: Erik M. Stumpfel, City Solicitor City of Bangor 73 Har:cW Street Bangor. me 04401 -13 - or at Such other place as the CITY may, from time t0 time, designate by notice to TENANT. If sent to TENANT: Bangor Raceway P.O. Box 614 Bangor, ME 04402-0614 With a copy to: Thame8-P:-Shahan;-dr>7-Eaq- 185-Harley-Stree£ Bangorr-ME-64491 E Andrew Hamilton. Esg. Baton Peabody Bradford & Veague Box 1z0o Bangor, ME 04402-1210 or at such other place as TENANT may, from time to time, designate to the CITY. 34. Integration. This Agreement and all appendices and amendments hereto embody the entire agreement of the parties relating to the duties and obligations required hereunder. There are no promises, terms, conditions or obligations other than those contained herein, and this Agreement shall supersede all previous communications, representations or agreements, either oral or written, between the parties hereto. IN WITNESS WHEREOF, the parties have respectively executed or caused this Agreement to be executed the day and year first written above. WITNESS: CITY OF BANGOR (By) Edward A. Barrett Its City Manager WITNESS: BANGOR HISTORIC TRACK, INC. (BY) Fred Nichols Its Raceway Manager \���� OPEN ACC>FS — SNnP.Eo U:,E 7L- QS9.c EARN PULLING AnEA CATTLEPENS BASS PARK, HOME OF THE BANGOR STATE FAIR EXHIBIT 1 ,oxA a,. _ y,T�A,�� � 'x Ph CK-'iPISW61IJ 'Pl BASS PARK, HOME OF THE BANGOR STATE FAIR EXHIBIT 1 v95 Awel?l�b 9 .by Zw bsrrur�'o v BANGOR RACEWAY LEASE AGREEMENT The CITY OF BANGOR, a municipal Corporation organized and existing under and by virtue of the laws of the State of Maine, and located at Bangor, Penobscot County, Maine (hereinafter referred to as the "CITY") and BANGOR HISTORIC TRACK, INC., a Maine corporation, doing business as Bangor Raceway (hereinafter referred to as "TENANT") W I T N E S S E T H: WHEREAS, the CITY is the owner of a harness racing facility located in the City of Bangor at the CITY's Bass Park Complex; and WHEREAS, the TENANT wishes to lease the CITY's harness racing facility for the purpose of conducting an extended harness racing meet for the calendar years 1999 through 2801 racing seasons. NOW, THEREFORE, the parties hereby agree as follows 1. Premises. The CITY, for and in consideration of the rents to be paid and the obligations to be performed by the TENANT as hereinafter provided, does hereby demise and lease unto the TENANT and TENANT does hereby take and hire, upon and subject to the terms and conditions hereinafter stated, in their present physical condition, and for the periods hereinafter stated, the following described premises and facilities located at the CITY's Bass Park Complex, as further designated in the sketch attached hereto as "Exhibit 111: Area THIS AGREEMENT, executed in duplicate, this day of January, 1999, by and between: August 9 The CITY OF BANGOR, a municipal Corporation organized and existing under and by virtue of the laws of the State of Maine, and located at Bangor, Penobscot County, Maine (hereinafter referred to as the "CITY") and BANGOR HISTORIC TRACK, INC., a Maine corporation, doing business as Bangor Raceway (hereinafter referred to as "TENANT") W I T N E S S E T H: WHEREAS, the CITY is the owner of a harness racing facility located in the City of Bangor at the CITY's Bass Park Complex; and WHEREAS, the TENANT wishes to lease the CITY's harness racing facility for the purpose of conducting an extended harness racing meet for the calendar years 1999 through 2801 racing seasons. NOW, THEREFORE, the parties hereby agree as follows 1. Premises. The CITY, for and in consideration of the rents to be paid and the obligations to be performed by the TENANT as hereinafter provided, does hereby demise and lease unto the TENANT and TENANT does hereby take and hire, upon and subject to the terms and conditions hereinafter stated, in their present physical condition, and for the periods hereinafter stated, the following described premises and facilities located at the CITY's Bass Park Complex, as further designated in the sketch attached hereto as "Exhibit 111: Area gates Track March 1 through October 15, but excluding July 27 through August 9 Barns March 1 through October 15 and a reasonable period before March 1 for preparation purposes Trailer Park April 1 through July 28 and August 11 through August 23 Grandstand March 1 through July 26 The track, trailer park, and grandstand, as well as parking areas, are specifically recognized as joint use areas as follows: a. Parking Areas. Parking areas will be available for use by harness racing customers as well as Customers of other events held at the Bass Park Complex on a first-come, first-served basis. L. Trailer Park. The trailer park areas will be available for use by individuals associated with horse shows held in August or with harness racing on a priority basis during the Trailer Park dates indicated above. My unused space during the Trailer Park dates will be made available for short-term use by others with the revenue from these users to go to the CITY. C. Track and Grandstand. The track and grandstand areas shall be available for use for other events prior to the date of commencement of the harness racing meet. The track and grandstand shall also be available during the race meet on non -racing days and after racing on any racing day where racing is normally scheduled to end by 6:00 p.m. Such uses shall be permitted provided that the track shall not be closed to horses for more than three days in any week from April 1st to the date Of Commencement of the harness racing meet and no more than two days in any week during the harness racing meet. 2. Term. TO HAVE AND TO HOLD the demised premises unto the TENANT for an annual term commencing January 1, 1999 and ending October 15, 1999. PROVIDED, however, that TENANT's occupancy and use of any of the facilities described above shall not begin prior to or extend beyond the periods stated in Section 1 above. For the Purpose of renewal, the CITY shall not require additional rental income over and above all amounts derived from the formulas stated elsewhere within this Agreement. 3. Renewal. Provided that TENANT is not in default of any material provision hereunder, TENANT shall have the option to extend this Lease for an additional period of two (2) years. TENANT's right to renewal shall be exercised by giving notice of renewal to the CITY i writing no later than October 1st preceding the renewal term. A9 acondition of renewal, TENANT shall expend a minimum of $33,000 per year for facility improvements during the original and renewal terms of this Agreement. During the final year of the renewal of this Agreement, the facility improvements shall be paid for by May 1st. Private donations obtained by TENANT for facility improvements shall be applied towards TENANT's financial obligation herein for facility improvements. TENANT must obtain the approval of the CITY for any donation. The CITY must approve any facility improvements. Facility improvements shall be those agreed upon by the CITY and TENANT that are mutually beneficial to the parties. Page 2 4. Existing a t A dit' ns and Changes. No building r facility or any physical changes to any existing buildings or facilities may be constructed without the express written consent of the CITY. Such consent shall not be unreasonably withheld. However, the CITY may withhold its consent to any additions o changes which, in the sole opinion of the CITY, would have a negative impact on the use of the leased facilities for other events and purposes, or on the structural integrity of any building or structure. All additions and changes shall be made in accordance with the appropriate building and development Codes, and TENANT shall be responsible for all necessary permits. It is understood and agreed that the CITY shall remain the legal owner of all buildings, structures, improvements, facilities and installations currently upon the premises or which may be erected upon the premises during the term of this Agreement or any extensions or renewals thereof. Equipment owned and installed by TENANT shall become the property of the CITY where such equipment becomes attached to and a fixed element of any building, structure, or facility. 5. Maintenance and Improvements. TENANT shall, at its sole cost, provide all necessary maintenance and repair of the leased facilities, including the maintenance and repair necessary to keep the facilities in compliance with applicable fire and life safety codes. TENANT shall maintain the facilities in accordance with first class standards comparable to other facilities in Maine and New England. The CITY and its designated representatives shall have a right of access to inspect premises and facilities and to order corrective measures. Formal inspections of the demised premises shall be Conducted by the CITY on or about March 1st, during the week prior to the Bangor State Fair, during the week after the Bangor State Fair, during the week after September racing, if applicable, and during the first week of November of each year this Agreement is in force. The purpose of these inspections is to insure that the facilities are maintained in the $ame or better condition as existed at the start of the Agreement. In the event TENANT fails to make repairs or to keep the facility n a safe and sanitary condition, CITY shall have the right to enter upon the facility for purposes of making repairs and to charge the cost of such repairs to TENANT. Failure to adequately maintain the facility will be a basis for default and termination of this Agreement and forfeiture of performance bond. It is anticipated that the CITY will participate in the cost of betterments or improvements made to shared -use facilities where such work benefits events or users of the facilities other than harness racing. TENANT shall forward requests for such improve- ments or betterments to the CITY on an annual basis, on or about March 1st of each year, for consideration In the CITY's annual budget process. These requests may include requests for pro- portional reimbursements for betterments already performed by TENANT. The cost of such improvements shall be shared on a 50/50 basis or such other basis as may be separately negotiated subject Page 3 to City council approval of the expenditure. The CITY may, at its own option, elect to proceed with its own betterments or improve- ments to shared -use facilities where Such work shall not have a negative impact on harness racing. The CITY shall inform TENANT in advance of planned improvements and shall coordinate their schedule with TENANT in order to minimize their impact on harness racing. TENANT may, at its own option, elect to proceed with its own betterments or improvements to shared -use facilities where such work has been previously approved by the CITY for construction but not for shared -funding. 6. Approved Uses. The primary use of the leased facilities will be for live harness racing and directly related activities and promotions including simulcasting. Other horse related events such as horse shows, sales, and demonstrations are permitted. TENANT shall have the exclusive use of the leased premises for these uses during the term of this lease agreement. Where such events occur on a stand-alone basis on the leased facilities and during TENANT'S occupancy period, net revenues shall be apportioned between the CITY and TENANT on a 75%/25% basis with the larger portion going to the entity which identifies and brings the events to the facility. The TENANT may request that he be allowed to use the facility for other licensed Maine Harness Racing Commission services, and if so requested, a separate agreement, subject to final approval of the Bangor City Council, may be negotiated by the parties. 7. Utilities. All utility expenses including water, electrical, telephone, sewer and waste disposal, required to operate the leased facility, shall be paid by the TENANT. TENANT shall pay CITY for all City-prOvided utilities at the same rates the CITY charges similar customers. The CITY and TENANT shall agree to a utility metering and/Or cost allocation plan which will be implemented prior to March 1, 1999- The purpose of this plan is to provide for a cost-effective Plan for either separately metering the facilities to be used for racing or appropriately allocating utility costs based on actual use for racing and other events. 8. Taxes Licenses and Fees. TENANT shall be responsible for any and all taxes andall required licenses and fees to operate the Facility. 9. Indemnification and Insurance. The TENANT shall indemnify, defend, and hold harmless the CITY from and against all claims and actions, and all expenses incidental to such claims or actions, based upon or arising out of damage to property or injuries to persons or other tortious acts caused or contributed to by the TENANT or anyone acting under its direction or control or in its behalf in the Course of the TENANT'S activities under this Agreement, provided the TENANT'S aforesaid indemnity and hold harmless agreement Shall not be applicable to any liability based upon the sole negligence of the CITY. Page 4 The TENANT hereby expressly agrees that it will defend, indemnify and hold the City of Bangor harmless from any and all claims made or asserted by TENANT'S agents, servants or employees arising out of TENANT'S activities under this Agreement. For this Bonuses, TENANT waives any and all immunity it may have under M Workers' Compensation Act in regard to su ane o The include any and nrprovcost under this paragraph shall extend to and include any and all setts incurred by the CITY answer, investigate, defend and settle all such claims, including but not limited to the CITY's costs for attorney fees, expert and other witness fees. the cost of investigators, and payment in full of any and all sugnt rendered 1n r of TENANT'S agents, servants or a employees against rega t the CITY in to claims made or asserted by such agents, servants, or employees. a. In connection with the employment of its employees, TENANT shall pay all applicable social security, unemployment, workers' compensation, or other employment taxes or contributions of insurance and shall comply with all federal and state laws and regulations relating to employment generally and to wages, social security, unemployment insurance and workers' compensation in particular. TENANT shall indemnify and hold harmless the CITY from all costs, expenses, claims or damages resulting from any failure of TENANT to comply with these requirements. b. TENANT shall procure and maintain comprehensive general liability and automobile liability insurance on behalf of the CITY against any damage, lossor liability or claims alleged to have arisen from the use or occupancy by TENANT of the raceway and related facilities. With respect to the required insurance, CITY shall be named as an additional insured; be provided with a waiver of subrogation in favor of the CITY; and shall be provided with thirty (30) days notice of cancellation or material change; and shall be provided, through the Office of the City Solicitor, with certificates of insurance evidencing the above required insurance. The cost of such insurance shall be paid directly by TENANT. The CITY reserves the right to increase insurance levels at the time of any contract extension or option renewal. The amounts of such coverage shall be as follows: 1 De Amount 1, workers' Compensation $1M combined single limit Statutory Employers Liability 2. Comprehensive Public $iM Combined single limit Liability to include with additional umbrella but not be limited to policy for not less than the following: $2M Page 5 a) premises/operations b) independent contractor c) personal injury coverage d) product/completed Operations e) contractual liability 3. Comprehensive Automobile SIM combined single limit Liability coverage to include coverage for: a) owned/rented automobiles b) non -owned automobiles c) hired cars 4. Standard Form Fire or Replacement Value All Risk Insurance Policy Should TENANT desire, CITY will entertain a request that Fire or All Risk Insurance be provided by the CITY and shall be paid, on an agreed pro -rata basis, by TENANT for those periods in which TENANT occupies the facilities. In the event of loss or damage to any portion of the leased premises due to fire or other casualty occurring during TENANT'S use or occupancy, or occurring after TENANT's use or occupancy as a result of the negligence of TENANT or TENANT's agents, servants, contractors, or employees, TENANT shall reimburse to the CITY any portion of the CITY's cost of replacing or repairing the particular facilities concerned that is not reimbursed by applicable fire or all risk insurance. Each insurance policy procured by TENANT shall affirmatively state that it will not be invalidated because the insured waived its rights of recovery against any party prior to the occurrence of a loss. 10. Employees and Independent Contractors. TENANT and its employees shall operate as an independent contractor and neither TENANT nor TENANT'S employees shall be deemed in any manner to be agents or employees of the CITY. The CITY shall not be responsible for TENANT's financial obligations including, but not limited to, salaries and wages earned by employees, purse distribution and Prizes won during the course of the racing meet, or amounts due to independent contractors, horsemen, vendors and patrons. 11. Comnhame with Laws. TENANT will comply with all federal, state and local statutes, rules, ordinances and regulations as they relate to the operation of the raceway and related facilities. 12. Non -Discrimination. In conducting activities under this Agreement, TENANT shall not discriminate on the basis of race, color, sex, creed, religion, ancestry. national origin, age or disability, or in any other manner prohibited by law, and shall not fail or refuse to hire an employee or accord adverse, or unequal Page 6 treatment to any person or employee with respect to application, hiring, training, apprenticeship, tenure, promotion, upgrading, compensation, layoff, discharge or any other term or condition of employment in any manner prohibited by law. 13. Catering. TENANT shall have the exclusive right to sell alcoholic beverages on the leased premises during TENANT'S occupancy thereof and shall have the right to operate or let all food and drink concessions at the raceway where the provision of such services is for acing event authorized under this Agreement. CITY reserves right to provide these services and concessions for anyevent sponsored or permitted by the CITY. TENANT may exercise these rights directly or through an agreement with a reputable area concessionaire acceptable to the CITY. Should a concessionaire be selected, the concessionaire must enter into an agreement with the CITY for the use of any concession equipment or supplies owned by the CITY and for the provision by the concessionaire of insurance acceptable to the CITY and the guarantee of necessary operating licenses, including a license for sale of beer. The CITY reserves the right to require a reasonable payment for such equipment and supplies. 14. Purchase of City Inventorv. TENANT shall purchase all maintenance materials and supplies on hand and owned by the CITY at the time TENANT assumes operation of the raceway. Price will be based on actual CITY costs. 15. Performance Bond. TENANT shall provide the CITY with an acceptable corporate surety bond in the penal sum of $30,000 payable to the CITY, or such Other security as is acceptable t0 the City Solicitor, for the faithful performance of all duties and obligations imposed upon TENANT by and under the terms of this Agreement. The CITY reserves the right to require an increase in the amount of this bond at the time of any extension or option renewal of this Agreement. Such increase shall be limited to no more than 258 of the amount in effect at the time, Bond or other acceptable security may be provided within ten (10) days of award of extended racing meet license to TENANT by the Maine Harness Racing Commission. In addition to serving as a performance bond, this amount, if provided i appropriate form acceptable to the City Solicitor, shall also fulfill the requirement outlined in Section 22 below for a Damage Deposit. Acceptable security may include an irrevocable letter of credit or a cash deposit. Said Performance bond shall remain in force, at a minimum, until November 30th of each year this Agreement is in force. 16. Responsibilities of Tenant. Consistent with the terms of this Agreement, TENANT shall exercise sound business judgment, cooperate with the CITY, and be open to the CITY's recommendations and advice. The CITY'S and TENANT'S specific responsibilities shall include, though not necessarily be limited to, the following: a. Neighborhood Public Relations and Protection. TENANT is mindful of the impact of Facility activities on the Page 7 immediate neighborhood and surrounding area. TENANT agrees to adhere to the following guidelines: i. No live race shall start after 11:00 p.m. unless, due to an unforeseen emergency such as, but not limited to, loss of power, loss of computer support to run the mutual area, facility accident, or loss of ambulance support, races are delayed. In such circumstances, TENANT shall make every effort to accelerate post times and to finish operating at a reasonable hour, in no case later than 12 midnight. ii. TENANT, in conducting TENANT's activities under this Agreement, shall take necessary steps to prevent generation of excessive noise. For this purpose, excessive noise shall mean noise of a volume, pitch Or intensity likely to disturb the peace of ordinary occupants of residential properties surrounding the Hass Park Complex. 111. To the best of its ability, TENANT shall ensure that horse trailers and Facility traffic will comply with all applicable CITY rules and regulations. b. Pest Control. TENANT shall be responsible for all necessary pest control services. TENANT and the CITY may mutually agree to a proration of annual pest control services. C. Snow Removal, The CITY shall be responsible for snow removal services. d. Trash Removal. TENANT shall be responsible for all waste and trash removal services, including removal and disposal of manure. e. LijQenkeZ-VL Permits. TENANT shall obtain and maintain all licenses and permits necessary for TENANT to manage and operate the Facility. Failure to maintain the necessary licenses and permits to operate and manage the Facility shall constitute a breach of this Agreement. f. Fixed Asset Inventory. TENANT shall take custody but not ownership of the fixed assets of the Facility. The CITY shall provide TENANT with a full and complete written inventory of structures, facilities, and improvements within the leased area. TENANT shall accept this fixed asset inventory and may request a physical walk through and verification with a designated representative of the CITY. Proper notations of any discrepancies shall be made and initialed by both parties on the written inventory. During their period of use, TENANT shall assume all maintenance and repair costs on such equipment. g. crass Outline. The CITY will be responsible for all grass cutting throughout the property. 17. Security. TENANT will insure that adequate security is available for all events held at the Facility. TENANT shall develop, in Cooperation with the Chief of Police of the Bangor Police Department, a security plan for the Facility. This plan shall outline the level and type of security to be provided during racing. Uniformed police officers shall be in attendance at all harness racing events. The number of uniformed police to be present shall be established in the joint security plan. In addition, the Chief of Police of the Bangor Police Department may, at his discretion, require TENANT to provide a higher level of uniformed police to be present in order to preserve order and protect lives and property. In the event of a dispute between the TENANT and the Chief of Police regarding the number of uniformed police officers required, the dispute shall be submitted to the City Manager of the City of Bangor whose determination shall be final. Uniformed police security may be supplemented by using local contract security, TENANT's own security employees, or other sources of security service. The Chief of Police of the City of Bangor shall retain the authority to direct TENANT to remove from this responsibility any individual engaged in providing security services for any reason. The required security plans shall be developed and approved by TENANT and the CITY within sixty (60) days of the date of agreement. TENANT shall pay the CITY for use of uniformed police officers at the same rate established by the CITY for such services provided to other parties. During any renewal period of this Agreement, TENANT and the Chief of Police shall meet to review the previous racing season's security plan and shall agree on any modifications to said security plan necessary for the renewal period's race meet. Said meeting and agreement on necessary modifications shall take place no later than thirty (30) days prior t0 the start of said race meet. 18. Fire Protection. TENANT shall abide by all life safety and fire codes established by the State of Maine and the CITY as interpreted and enforced by the Code Enforcement Officer of the City of Bangor or the State Fire Marshal's Office. 19. Bass Park Will. The property upon which Bass Park is located was donated to the CITY under certain Conditions outlined in the Will of J.P. Bass. The Will essentially requires that the Bass Park property be maintained and used for public recreation purposes. CITY will provide TENANT with a copy of the Bass Will. TENANT agrees to abide by the terms and conditions of the Will in its operation of the facilities. 20. Payment to the City. TENANT shall pay the CITY a base fee of Thirty -Five Thousand Dollars ($35,000.00) for the right to Page 9 lease and operate the premises. In addition to the base fee, TENANT shall pay to the CITY an additional fee amount to be determined as follows: If the sum of the average daily handles both on -track and at Maine Off Track Betting facilities wagered o TENANT's races is greater than Fifty Thousand Dollars ($50,000.00), the percentage amount by which said amount exceeds $50,000.00 shall be multiplied by the base fee to determine the amount of the additional fee. CITY shall invoice TENANT the full amount of the base fee on March 1st of each year of this Agreement or renewal thereof. TENANT shall pay the fee(s) in seven (7) equal monthly installments beginning March 1st. Any additional fees due will be calculated at the end of the Racing Season and be payable by September 1st with the final rental installment. At the end of any month races are conducted on or at the leased premises, TENANT shall provide to CITY copies of reports required to be filed with the State of Maine reflecting all wagers placed or made at the leased premises, as well as all wagers made or placed at Maine Off Track Betting facilities on races conducted at the leased premises. The annual payment to the City may be renegotiated by the parties in the event TENANT has applied to the Maine Harness Racing Commission for fifteen (15) days of racing or less for that particular year. Provided, however, that the rental shall be based upon a per them for use of the racetrack and grandstand only on actual race dates. 21. other Pavments. In addition to any and all payments required elsewhere in this Agreement, TENANT shall expend twenty- five percent (25%) of any payment made to TENANT under Title 8, Maine Revised Statutes, Section 25(H)(3), sometimes referred to as the "Commercial meet stipend", on facility improvements during the calendar year in which such payment, if any, is received. 22. Damage Deposit. Within two (2) weeks following the CITY's annual pre -race inspection of the premises ("., the inspection which is to occur on or about March 1st of each year this Agreement is in force), TENANT shall deposit with the CITY the sum of Ten Thousand Dollars ($10,000.00) to be held by the CITY as a deposit against the CITY's cost of repairing any unrepaired damage to the premises Caused by the TENANT, its employees, horsemen, vendors, harness racing patrons, or Others using the premises during the harness racing season. Following the Conclusion of live racing and prior to the start of the Bangor State Fair, the CITY shall also conduct inspections of the premises as provided in paragraph 5 above for the purpose of identifying any unrepaired damage to the premises occasioned by TENANT'S use thereof. The CITY shall provide TENANT with a list of all such items of unrepaired damage, which shall be repaired by TENANT prior to the start of the Bangor State Fair, or within thirty (30) days of the CITY's notice to TENANT, as the CITY may direct. If not repaired by TENANT within such period, the CITY may repair or cause such items to be repaired, and may apply TENANT's damage deposit as necessary for that purpose. As a condition of the renewal of this Page 10 License, TENANT shall deposit with the CITY funds sufficient to restore the damage deposit amount to Ten Thousand Dollars ($10,000.00). Upon termination or final expiration of this Lease, and following repair of all unrepaired damage to the premises occasioned by TENANT 'a use thereof, the unexpended balance of TENANT'S damage deposit shall be refunded to the TENANT. Said damage deposit, whether included as part of the Performance Bond (Paragraph 15 above) or otherwise shall remain in force, at a minimum, until November 30th of each year this agreement is in force. 23. Advertising. TENANT Shall have the right to solicit and display advertising within and around the grandstand and on the raceway shadow fence. Such advertising must comply with the Advertising Policy Of the Bangor City Council as currently adopted or as it may, from time to time, be amended. Any revenues derived from such advertising shall be prorated between TENANT and CITY based on the percentage of time such advertising shall be displayed during and outside TENANT 'a period of occupancy of the facilities where such advertising is present. Any advertising which will be displayed beyond TENANT's period of occupancy must be specifically approved by the CITY. Any advertising to be provided in exchange for facility improvements must be approved by CITY, both as to content of advertising and overall payments or facility improvements to be provided. 24. Event Sian. CITY shall provide TENANT with the right to Place an event sign adjacent to the Bass Park property at a location mutually acceptable to CITY and TENANT. In addition, CITY shall make space available on the Bass Park lighted marquee sign located on Main Street whenever possible. 25. Destruction of or Maior Repairs to the Premises. In the event that the leased premises or any part of the leased premises shall be destroyed by fire, explosion or other casualty, or a need arises for substantial capital improvements so that all or a substantial portion of the leased premises cannot be operated, and the CITY or TENANT fails to rebuild, repair and reopen the same for business within sixty (60) days after the happening of said event, then either party shall have the right (but no obligation) to terminate this Agreement. 26. Termination and Default. If TENANT fails to pay or deposit sums due within seven (7) days notice of such failure, or fails to comply with its other obligations under the terms of this Agreement, and the TENANT fails to cure such failure within thirty (30) days after written notice, which notice shall specify in sufficient detail the specific circumstances so as to give the TENANT adequate notice and the opportunity to cure the same, the CITY may upon expiration of such period terminate this Agreement. 27. No Joint Venture. Nothing contained herein shall be deemed or construed by the parties, nor by any third party, a creating the relationship of principal and agent or of partnership Page 11 or joint venture between the parties, it being understood and agreed that neither the method of computation of rent nor any other provision nor any other acts of the parties shall be deemed to create any relationship between the parties other than that of landlord and tenant. 28. NQn-Waiver. The failure of either party at any time to enforce a provision of this Agreement shall in no way constitute a waiver of the provision, nor in any way affect the validity of this Agreement or any part hereof, or the right of such party thereof to enforce each and every provision hereof. 29. Amendment. The parties may amend this Agreement only by written agreement executed by the parties. 30. No Assignment. TENANT shall not assign, sublet, sell, transfer, or otherwise dispose of its interest in this Agreement without the prior written approval of the CITY. This Agreement shall be binding upon and inure to the benefit of the parties hereto, their successors and permitted assigns. 31. Severability. Any provision of this Agreement declared. valid by a court of competent jurisdiction shall not invalidate the remaining provisions of this Agreement. 32. Governing Law. This Agreement shall be governed exclusively by the provisions hereof and by the laws of the State of Maine, as the Same may from time t0 time exist. NO suit Shall be brought by either party to enforce any of the terms or provisions of this Agreement, unless brought in the Penobscot County, Maine District or Superior Court. 33. NN tom. All notices required by this Agreement shall be in writing. and shall be sufficiently given and served upon the other party if sent by registered or certified United States mail, postage prepaid, and addressed as follows: If sent to CITY: Michael Dyer, General Manager Bass Park Complex 100 Dutton street Bangor, ME 04401 With a copy to: Erik M. Stumpfel, City Solicitor City of Bangor 73 Barlow Street Bangor, ME 04401 or at such other place as the CITY may, from time to time, designate by notice to TENANT. If sent to TENANT: Bangor Raceway P.O. Box 614 Bangor, ME 04402-0614 Page 12 With a copy to: P. Andrew Hamilton, Esq. Eaton Peabody Bradford s Veague P.O. Box 1210 Bangor, ME 04402-1210 or at such other place as TENANT may, from time to time, designate to the CITY. 34. Integration. This Agreement and all appendices and amendments hereto embody the entire agreement of the parties relating to the duties and obligations required hereunder. There are no promises, terms, conditions or obligations other than those contained herein, and this Agreement shall supersede all previous communications, representations or agreements, either oral or written, between the parties hereto. IN WITNESS WHEREOF, the parties have respectively executed or caused this Agreement to be executed the day and year first written above. WITNESS: CITY OF BANGOR (BY) Edward A. Barrett Its City Manager WITNESS: BANGOR HISTORIC TRACK, INC. APPROVED AS TO FORM: CITY of BANGOR, by Printed Name Title (By) Fred Nichols Its Raceway Manager Page 13