CCR2020096-Lease Agreement1
WATER BUGS SKI TEAM, INC. AND CITY OF MUSKEGO
LEASE AGREEMENT FOR THE IDLE ISLE PAVILION
The Muskego Water Bugs Ski Team, Inc. (hereinafter, the “Water Bugs”) and the City of
Muskego (hereinafter, the “City”) hereby enter into this Lease Agreement, consisting of eight (8)
pages including Exhibit “A”, for the use of a portion of the Idle Isle Pavilion owned by the City
and located at W182 S6666 Hardtke Drive, Muskego, Wisconsin 53150.
Section One: Description of Premises
Water Bugs shall have exclusive use of the following premises of the Idle Isle Pavilion:
1. One storage area comprised of 987 square feet as depicted by the number “1” on
Exhibit “A” attached hereto.
2. Water Bugs shall not have the use of any area in the Pavilion not described herein.
Section Two: Term of Lease
The term of this Lease shall be for ten (10) years commencing on January 1, 2021 and
terminating on December 31, 2030. In the event the Water Bugs cease to exist during the
term of this Lease, the Agreement shall terminate on the day that the City receives notice
of its non-existence. In this event, rent is due through the date that Water Bugs ceases to
exist or the date it removes its property from the premises, whichever occurs latest. In the
event the Water Bugs are not able to obtain a Special Use Permit from the City, Water
Bugs may terminate this Lease Agreement upon thirty (30) days written notice to City
with rent due to City through the date it removes its property from the premises.
Section Three: Lease Payments
Rent shall be paid by Water Bugs to City on an annual basis in the amount of $1.00 per
year due on January 2nd of each calendar year. All utilities are included in the annual
rental fee.
Section Four: Contact Persons
Contact person from Water Bugs will be the Water Bugs President. The Water Bugs will
also be responsible for listing an alternate contact. These names will be submitted to the
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City. The City's contact person will be the Recreation Manager. The alternate contact
person will be the Director of Public Works & Development.
Section Five: Rules and Regulations
The Water Bugs will agree to abide by the following:
A. The Water Bugs shall be solely responsible for maintaining the rental property in
good condition during the term of this Agreement. Any improvements, additions or
install improvements are subject to prior review and approval by the City.
B. Water Bugs agree not to allow any person to live or sleep on the premises without
the permission of the duly authorized official of the City.
C. Water Bugs agree to employ competent persons to be in attendance on premises
used by them, and that at no time will there be less than one adult immediately in charge
of said premises during hours of their operation.
D. Water Bugs agree that they will not allow rubbish to accumulate in any form on
the premises used by them or at a prescribed distance from such facility used by them.
Water Bugs must provide adequate waste receptacles in the building and shall also be
responsible for removing waste from their operation from the facility. Water Bugs must
keep clean the interior bathroom of the building. The City will not provide garbage
service for their operation.
E. The Water Bugs shall be solely responsible for all damage to the premises caused
by agents, employees, or volunteers working under them. The Water Bugs further agree
that they will, at their own expense, repair any and all damages to the property of the
City. Any repairs shall be approved by the City prior to commencement of work.
F. The Water Bugs agree that no sign or advertising matter of any kind shall be
displayed on the building or grounds at Idle Isle Park unless approved by the City.
G. The Water Bugs shall not, without written consent of the City, sublet the premises
or any part thereof, nor assign, hypothecate or mortgage this Agreement.
H. Those persons representing the City reserve the right, exercisable at any time
during the term hereof, or extension thereof, to enter the premises described herein at any
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time and without notice for the purpose of inspection and making repairs to the building
for the proper preservation and maintenance of said premises.
I. If the premises are destroyed by fire, flood, casualty, war, or any other purpose,
then this Agreement at the option of either party shall cease and come to an end. But in
case of any partial damage, the City may restore the premises to the previous condition
and this Agreement shall continue in effect beginning upon completion of the restoration
of the premises. Rent shall be prorated accordingly.
J. No parking of vehicles is allowed at any time on the grass or on the asphalt paths
around the building or grounds on Idle Isle Park without the consent of the City.
K. No parking of vehicles is allowed anywhere on the premises at Idle Park on July
3rd without the consent of the City.
L. No storage of equipment is allowed outside of the pavilion without the consent of
the City.
Section Six: Legal Provisions
Other Governmental Regulations. This Agreement is subject to any and all governmental
regulations as they may be amended from time to time over the term of this Agreement.
If the Agreement is in conflict with said regulations, the regulations must be followed.
Assignment. Neither the Water Bugs nor the City may assign its interest under this
Agreement without the other party’s prior written consent, which may be granted or
withheld in such party's sole reasonable discretion.
Notices. All notices permitted or required by this Agreement shall be given in writing and
shall be considered given upon receipt if hand delivered to the party or person intended,
or upon facsimile transmission to the fax numbers set forth herein, or email transmission
at the email addresses set forth below, or three (3) business days after deposit in the
United States mail, postage prepaid, by certified mail, return receipt requested, addressed
by name and address to the party or person intended as follows:
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To the Water Bugs: Muskego Water Bugs Ski Team, Inc.
P.O. Box 111
Muskego, WI 53150
Attn: President
Fax No.: __________________________
Email: muskegowaterbugs@gmail.com
To the City: City of Muskego
W182 S8200 Racine Avenue
Muskego, WI 53150
Attn: City Clerk-Treasurer
Fax No.: 262-679-5593
Email: finance&adminstaff@cityofmuskego.org
Governing Law. This Agreement shall be interpreted and construed according to the laws
of the State of Wisconsin. Any legal action regarding this Agreement shall be brought
and maintained in the Circuit Court of Waukesha County, Wisconsin.
Severability of Provisions. If any of the terms or conditions contained herein shall be
declared to be invalid or unenforceable by a court of competent jurisdiction, then the
remaining provisions and conditions of this Agreement, or the application of such to
persons or circumstances other than those to which it is declared invalid or
unenforceable, shall not be affected thereby and shall remain in full force and effect and
shall be valid and enforceable to the full extent permitted by law.
Captions. The captions in this Agreement are inserted only as matters of convenience and
for reference and in no way define or limit the scope or intent of the various provisions,
terms or conditions hereof.
Binding Effect. The terms and conditions of this Agreement shall be binding upon and
benefit the parties hereto and their respective successors and permitted assigns.
Entire Agreement. This writing constitutes the entire Agreement between the parties
hereto, and all prior statements, letters of intent, representations and offers, if any, are
hereby terminated. This Agreement may be modified or amended only by written
instrument signed by both parties. This Agreement terminates the Lease Agreement
between the Water Bugs and the City dated April 6, 2020 for the period of May 1, 2020
through April 20, 2022.
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Counterparts. This Agreement may be executed in one or more counterparts, each of
which will be deemed an original.
Representations as to Authority. Each party to this Agreement represents and warrants
that: (a) it has the power and authority to consummate the transactions contemplated by
this Agreement; (b) all proceedings necessary for it to consummate the transactions
contemplated by this Agreement have been duly taken in accordance with law; and (c)
the persons executing this Agreement on behalf of it have been duly authorized to
execute this Agreement.
Termination. The Water Bugs agree that at the termination of this Lease or any renewal
thereof, they will promptly surrender the premises to the City and will have removed
therefrom all of its appliances and equipment, placed thereon, in the storage facility. Any
appliances or equipment remaining on the premises thirty (30) days after expiration or
other termination of this Lease shall be deemed abandoned and shall become property of
the City. The Water Bugs agree that they will peaceably vacate all premises occupied by
them and deliver to the City in good condition all premises used by them, ordinary wear
and tear excepted.
Section Seven: Insurance
Water Bugs shall procure and maintain during the term of this Lease at its expense,
comprehensive general public liability insurance, covering the Premises and the insureds
against loss for personal injury and property damage. The coverage under such insurance
to be not less than One million dollars ($1,000,000.00) for any person injured, Two
million dollars ($2,000,000.00) for any one accident, and Fifty thousand dollars
($50,000.00) for property damage or such other coverage as the parties may agree in
writing from time to time. The City shall approve the coverage. Water Bugs shall also
carry during the term of this Lease, fire insurance with extended coverage, vandalism and
malicious mischief and theft and the mysterious disappearance endorsements covering
the contents of the Premises and all alterations, additions and leasehold improvements in
the amount of their full replacement value. Such policies shall cover both City and Water
Bugs, as their interest may appear. Before taking possession of the Premises, Water Bugs
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shall present to City Certificates of Insurance from the insurance companies showing
such coverage, along with the following separate written Endorsements:
1) Naming the City as an Additional Insured
2) Waiver of Subrogation
3) Primary and Non-Contributory Insurance
4) 30-day Notice of Cancellation
Section Eight: Indemnification
Water Bugs shall indemnify and hold harmless City from and against all claims arising
from Water Bugs’ use of the Premises, or from the conduct of Water Bugs’ business or
from any activity, work, or things done, permitted or suffered by Water Bugs in or about
the Premises and shall further indemnify and hold City harmless from and against any
and all claims arising from any breach or default in the performance of any obligation on
Water Bugs’ part to be performed under the terms of this Lease, or arising from any
intentional tort or negligence of the Water Bugs, or any of Water Bugs’ agents,
contractors, or employees, and against all costs, attorney fees, expenses and liabilities
incurred in the defense of any such claim or any action or proceeding brought thereon,
and in case any action or proceeding be brought against City by reason of any such claim,
Water Bugs, upon notice from City, shall defend the same at Water Bugs’ expense by
counsel satisfactory to City.
Section Nine: Dispute Resolution
In the event of a dispute between the Water Bugs and the City arising out of this
Agreement or the use of the Facilities, the Water Bugs and the City agree to attempt to
first resolve such dispute through mediation. In the event that the Water Bugs and the
City cannot agree upon a mediator, they shall each propose a qualified mediator, and such
qualified mediators shall choose a qualified third-party who will mediate the dispute. In
the event that mediation does not resolve the dispute, either party may utilize all remedies
as provided by law.
Section Ten: Default
If default is made by Water Bugs in payment of the rent, or any part thereof, and such
default shall continue for ten (10) calendar days after notice by City to Water Bugs to pay
the same, or if either party shall be in default under any other provision of this lease and
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such default shall continue to exist after receipt by the defaulting party of thirty (30)
calendar days’ notice thereof, City may terminate this lease and take possession of the
leased premises (if Water Bugs be the defaulting party) or Water Bugs may terminate this
lease and surrender possession of the leased premises to City (if City be the defaulting
party). Such termination of lease shall be without prejudice to the right of recovering
damages against the defaulting party for breach of this lease.
IN WITNESS WHEREOF, the parties have executed this Agreement.
WATER BUGS SKI TEAM, INC. CITY OF MUSKEGO
Water Bugs President Date Rick Petfalski, Mayor Date
Water Bugs Secretary Date Sharon Mueller, Director of Finance Date
T:\Departments\Attorney\Agreements\Waterbugs Agreements\Water Bugs Lease Agreement for Idle Isle Pavilion.docx