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2018-02RESOLUTION NO. 2018 - 2 COUNCIL MEMBER SHEPARD INTRODUCED THE FOLLOWING RESOLUTION: WHEREAS, the Mayor and City Council have been presented with an Addendum to Lease agreement between the City of Blair and the Blair Public Library Foundation to allow the city to make annual loan payment direct to the USDA instead of making payment to the Blair Public Library Foundation. WHEREAS, said agreement on file with the City Clerk is acceptable to the City of Blair. NOW, THEREFORE, BE IT RESOLVED that Addendum to Lease agreement between the City of Blair, Nebraska and the Blair Public Library Foundation is hereby adopted and approved by the municipality and the Mayor and City Clerk of the City of Blair are hereby authorized and directed to execute same on behalf of the municipality. COUNCIL MEMBER ANDERSEN MOVED THAT THE RESOLUTION BE ADOPTED AS READ, WHICH SAID MOTION WAS SECONDED BY COUNCIL MEMBER JENSEN. UPON ROLL CALL, COUNCIL MEMBERS SHEPARD, STEWART, WILLIS, HANSEN, WOLFF, JENSEN, HALL AND ANDERSEN VOTING "AYE" AND COUNCIL MEMBERS NONE VOTING "NAY", THE MAYOR DECLARED THE FOREGOING RESOLUTION PASSED AND APPROVED THIS 9TH DAY OF JANUARY, 2018. CITY OF BLAIR, NEBRASKA BY J REALPH, MAYOR ATTEST: BRENDA WHEELER, CITY CLERK (SEAL) STATE OF NEBRASKA ) ) :ss: WASHINGTON COUNTY ) BRENDAWHEELER, hereby certifies that she is the duly appointed, qualified and acting City Clerk of the City of Blair, Nebraska, and that the above and foregoing Resolution was passed and adopted at a regular meeting of the Mayor and City Council of said City, held on the 9th day of January, 2018. BRENDA WHEELER, CITY CLERK ADDENDUM TO LEASE AGREEMENT This ADDENDUM TO LEASE AGREEMENT, dated the 9th day of January, 2018 (this "Addendum Lease") is by and between the BLAIR PUBLIC LIBRARY FOUNDATION, a nonprofit corporation duly organized and existing under the laws of the State of Nebraska, as lessor ("Lessor"), and the CITY OF BLAIR, NEBRASKA, as lessee, ("Lessee"). RECITALS Lessor is the owner of certain real property described as Exhibit "A" attached hereto and incorporated by reference, (the "Real Estate") upon which the Lessor constructed a building to be used a public library and related facilities (the "Improvements"). 2. Lessee is a city of the first class and political subdivision duly organized and existing under the laws of the State of Nebraska, with the full power and authority to enter into this Lease pursuant to Nebraska Revised Statutes, Section 19-2421, Reissue Revised Statutes of Nebraska, as amended, (the "Act) and to operate a public library therein. The Lessor and Lessee entered into a valid and binding Lease Agreement, on the 9th day of June, 2017, hereinafter referred to as "Lease Agreement." 4. On June 22, 2017, a Memorandum of Lease was properly recorded with the Washington County Register of Deeds. 5. Lessor currently has a USDA Loan (dated July 7, 2017) which requires the Blair Public Library Foundation members to provide their personal financial information to the bonding company for purposes a obtaining a fidelity bond in the amount of the annual reserve. 6. The USDA now permits Lessee to make payment of the USDA Loan directly to the USDA through automatic payment withdrawal. 7. Lessor and Lessee desire to enter into an Addendum Lease regarding Article III. RENT, Section 3.1 of the Lease Agreement dated the 9th day of June, 2017. NOW, THEREFORE, IN CONSIDERATION of the premises and the mutual covenants and agreements set forth herein, the Lessor and the Lessee do hereby covenant and agree as follows: ARTICLE I DEFINITIONS The following words and phrases used in this Addendum Lease have the following meanings unless the context or use indicates another or different meaning or intent: "Addendum Lease" means this Addendum Lease Agreement and all amendments and supplements thereto. "Lease" means this Lease Agreement dated June 9, 2017, and all previous amendments and prior supplements thereto. "Basic Rent" means the amounts specified in Section 3. 1, payable by the Lessee as provided in Section 3.1 of the Lease. "Term" means the initial term of this Lease as specified in Section 2.2, and any Extension Terms, if exercised by Lessee as provided in Section 2.3. "USDA" shall mean the United States of America acting through the Rural Housing Service, United States Department of Agriculture. "USDA Loan" means the proceeds loaned to the Lessor pursuant to the USDA Rural Development Loan dated March 15, 2016 between the Lessor and the USDA. ADDENDUM TO ARTICLE III. RENT Commencing on the 7th day of July, 2018, the Lessee shall pay, through automatic payment withdrawal, the USDA for the purposes of the USDA LOAN dated July 7, 2017, the sum of Hundred Twenty Four Thousand, Nine Hundred, Sixty Three Dollars and No Cents ($124,963.00) annually for a period of Forty (40) years, or until paid in full. The Lessee shall no 14 longer make any payments whatsoever directly to the Lessor under the Lease, Article III, Section 3.1 Basic Rent, in exchange for relieving the Lessor of its obligation to pay the fidelity bond under the USDA Loan. Any amounts due under Article III. Rent, Section 3.1 are hereby payable to the USDA as provided by Addendum Lease. Lessee further agrees to forward USDA a copy of the City Treasurers fidelity bond when requested, but not more frequently than once a year, showing bonded amounts in excess of the annual payment and reserve account. In addition to the annual payment, lessee shall establish and maintain a reserve debt payment account. The lessee shall deposit the sum of Twelve Thousand Four Hundred Ninety - Six Dollars ($12,496.00) annually for ten (10) years into said reserve fund, then maintain said reserve fund of Hundred Twenty Four Thousand Nine Hundred Sixty Three Dollars and No Cents ($124,963.00) until USDA loan is paid in its entirety. NO EFFECT OF ADDENDUM LEASE ON REMAINDER OF LEASE AGREEMENT DATED THE 9TH DAY OF JUNE, 2017. This Addendum Lease only applies to Article III. Rent, and all other terms and conditions which are not expressly modified by this Addendum Lease shall remain in full force and effect. IT WITNESS WHEREOF, Lessor has caused this Addendum Lease to be signed in its name and behalf by its authorized officer, and the Lessee has caused this Addendum Lease to be signed in its name and behalf by its Mayor and City Clerk, and this Addendum Lease shall be effective as of the date of its execution and delivery as noted herein. SIGNED and DATED this 9thday of January, 2018. BLAIR PUBLIC LIBRARY FOUNDATION, LESSOR F BY: [TITLE/ AUTHORIZED OFFICER] 3 CITY OF BLAIR, NEBRASKA, LESSEE BY: MAY&4kMES REALPH ATTEST: BY: Z�� zxjk-'f�l' BRENDA WHEELER BLAIR CITY CLERK EXHIBIT A TO LEASE AGREEMENT REAL ESTATE Lot 86, Deerfield Addition, on the Replat of Lot 1 of Deerfield, an Addition to the City of Blair, Washington County, Nebraska.