FY2026-18 Ground Lease of the Kodiak Fairgrounds by the Kodiak Rodeo and State Fair, Inc. (KRSF)CONTRACTS TRANSMITTAL FORM
RETENTION SCHEDULE: CL -09 CONTRACTS
Records related to obligations under contracts, leases, and other agreements between the Borough and outside parties,
successful bids, and proposals. Active records are kept by the corresponding department. Apply retention (plus 4 years) once
contract or agreement expires, or once product is procured. Apply retention (plus 25 years) for agreements that involve
real property.
DATE: 11/03/25 TRANSMITTED BY: Aimee Williams DEPT: Manager
CONTRACT NO.: FY 2026-18 VENDOR OR CONTRACTOR: KRSF
CONTRACT TITLE(Please provide details that are available such as purpose and/or the amount):
Ground Lease of the Kodiak Fairgrounds by the Kodiak Rodeo and State Fair, Inc. (KRSF)
Administrative contracts are contracts approved by the manager that are within the spending
authority allowed by code. Assembly approved contracts are beyond the manager's spending
authority and require approval by the Assembly during a meeting.
APPROVED BY: Assembly DATE OF APPROVAL: 10/16/25
TYPE OF CONTRACT: Lease
PROVIDE DETAILS FOR ANY AUTOMATIC RENEWALS OR EXTENSIONS BELOW:
25 year lease
EXPIRATION OR REVIEW DATE: 11/30/2050 PURGE DATE: 11/30/2057
If there's no expiration date or the contract is open-ended, enter 9999 in the date field and explain when
it should be flagged for review:
Are all relevant attachments, exhibits, referenced documents attached? ❑v/
Are the successful bids and proposals incorporated in the attachments? ❑
ONLY COMPLETE THIS SECTION IF THE RECORD AMENDS, EXTENDS, IS A
CHANGE ORDER, OR AN ADDENDUM TO AN EXISTING CONTRACT
DATE:
CONTRACT NO.: FY
REQUESTED BY:
CATEGORY: Select One
APPROVED BY: Select One TYPE OF CONTRACT: Select One
PROVIDE DETAILS FOR ANY AUTOMATIC RENEWALS OR EXTENSIONS BELOW:
EXPIRATION DATE:
PURGE DATE:
If there is no expiration/purge date, enter 9999 as the year for open-ended contracts AND explain the
process below on how or when it should be flagged for review.
Rev. 04/09/2025
KIB FY2026-18
GROUND LEASE
As authorized by Resolution No. FY2026-06 of the Kodiak Island Borough, this Ground Lease
(Lease) is made and executed on November 4, 2025, by and between Kodiak Island Borough (KIB), a
municipal corporation, of 710 Mill Bay Road, Kodiak, Alaska 99615, (Landlord), and Kodiak Rodeo and
State Fair, Inc. (KRSF), a nonprofit corporation organized and existing under the laws of the State of
Alaska, of Post Office Box 507, Kodiak, Alaska 99615, (Tenant). Collectively Landlord and Tenant may be
referred to as the Parties.
RECITALS
A. WHEREAS, the KRSF, and its predecessor the Kodiak Jaycees, are the Tenant for lease of a 73 -
acre portion of USS 5329 LT 1 REMAINDER WOMENS BAY located at 10102 West Rezanof Drive in
Kodiak, Alaska, under a 55 -year lease originally entered into with the State of Alaska in 1970; and
B. WHEREAS, KIB received patent to the land from the State of Alaska in 1984, and has been the
Landlord under the pre-existing lease since that time; and
C. WHEREAS, the current long-term lease of this property expires November 3, 2025; and
D. WHEREAS, Tenant desires to continue to lease the property, and a new lease is required for
Tenant to continue occupation of this property; and
E. WHEREAS, the Parties desire to enter into a replacement lease continuing the tenancy; and
F. WHEREAS, Kodiak Island Borough Code (KIBC) 18.40.020 permits the KIB to, upon approval by
Resolution of the Assembly, enter into a negotiated lease for a period not to exceed twenty-five (25) years
to a qualified nonprofit corporation tenant for a reasonable rental rate taking into consideration the purpose
for which the real property is to be used; and
G. WHEREAS, the Tenant has provided the information required by KIBC 18.40.020(C) for a
negotiated lease.
NOW THEREFORE, the Parties hereto covenant and agree as follows:
Demise, Description and Use of Premises.
Landlord leases to Tenant and Tenant takes from Landlord, the surface estate of those certain
premises, situated in the Kodiak Island Borough, Alaska, depicted on Appendix A and more particularly
described as follows:
A tract of land in USS 2539 LT1 REMIANDER WOMENS BAY, beginning
at the triangulation monument Hill "A"; thence S70014'35"E, 2600.00'
along the northerly boundary of NAVY Tract 2 to corner 2 of said tract,
thence N20000'00"E, 2100.00'; thence N70014'35"W, 300.00'; thence
S67°28'12"W, 3121.05' more or less to the point of beginning. Containing
73 acres more or less. Located in Township 28 South, Range 20 West,
Seward Meridian.
As used herein, the term "Premises" refers to the surface estate of this real property and to any
improvements located on it from time to time during the term of this Lease. Tenant acknowledges that
Landlord has no ownership or other interest in the sub -surface estate of the Premises.
This is a commercial land lease and not a residential lease. This lease is not subject to the Alaska
Uniform Landlord Tenant Act (AS Chapter 34.03). Tenant's use of the Premises shall be limited to the
purpose of operating a rodeo and state fair program, which may include activities such as: equine boarding,
community gardens, competitions, exhibitions, educational programs and events, festivals, concerts, and
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other community gathering events. Additionally, Tenant may use the existing one-quarter mile dirt oval
racetrack on the Premises for motorized vehicles even though that activity is not a typical fairground activity
but is a customary past use of this site. Landlord understands that Tenant plans to add a caretaker
residence to the Premises and that Tenant may desire to use the Premises for other purposes regularly or
intermittently. All use of this premises must be in conformance with Kodiak Island Borough Conservation
District zoning code and before using the Premises for any other purposes than stated above, Tenant must
obtain the express written consent from Landlord for such use. Landlord agrees not to unreasonably
withhold its consent provided the goal of this Lease is promoted by the proposed additional uses.
II. Term.
A. The term of this Lease shall be for twenty-five (25) years, commencing on November 4,
2025, and ending on November 30, 2050. As used herein, the expression "term hereof' refers to such
initial term and to any renewal of it as provided in this Lease.
B. The Parties may mutually agree to earlier termination of this Lease at any time.
C. Emer-gency termination. The Landlord reserves the right in case of emergency to
immediately terminate this Lease and take possession of the Premises. If the Landlord exercises this right,
it accepts responsibility for any obligations under grants requiring Tenant's continued use of the Premises
for the remainder of the current lease term. In addition, Tenant will not be required to return the Premises
to its original condition if the Landlord exercises this right.
III. Rent.
Subject to adjustment as provided below, the rent for the term of this Lease shall be Five Hundred
Dollars and 00/100 ($500.00) per year, payable in advance, on or before November 4t^, each year, plus
any expenses identified in this Lease as Additional Rent, as defined below. The Parties also acknowledge
the value of Tenant's in-kind contributions as additional consideration for this Lease.
The annual rent due shall be reviewed and may be adjusted by the KIB Manager at the end of
every five-year interval or whenever the agreement is amended. Any changes or adjustments shall be
based upon changes in the appraised fair market value of the land and improvements being leased,
excluding landfill and other improvements placed upon the land by Tenant as well as the value of Tenant's
in-kind contributions, however in accordance with Kodiak Island Borough Code 18.40.020(B), the amount
will remain "at a reasonable rental rate taking into consideration the purpose for which the real property is
to be used."
If the Lease is terminated because of any breach by Tenant, as provided in this Lease, the rental
payment last made by Tenant shall be forfeited and retained by Landlord as partial or total damages for the
breach.
IV. Uses Prohibited.
Tenant shall not use, or permit the Premises, or any part of the Premises, to be used, for any
purpose other than the purpose or purposes for which the Premises are leased. If the Premises are devoted
to a use other than that for which they are leased without written consent of the Landlord, this Lease
automatically terminates. Tenant shall also comply with and abide by all federal, state, borough, municipal,
and other governmental statutes, ordinances, laws, and regulations affecting the Premises, the
improvements or any activity or condition on or in the Premises.
V. Waste and Nuisance Prohibited.
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A. During the term of this Lease, Tenant shall comply with all applicable laws affecting the
Premises, the breach of which might result in any penalty on Landlord or forfeiture of Landlord's title to the
Premises. Tenant shall not commit, or suffer to commit, any waste on the Premises, or any nuisance.
B. Hazardous Substances. Tenant may use or otherwise handle only those Hazardous
Substances, as defined by State Law (AS 46.08.900), typically used or handled in the prudent and safe
operation of the permitted use allowed under this Lease. Tenant shall refrain from causing Hazardous
Substances to be spilled, leaked, disposed of, or otherwise released on or under the property. Tenant may
store such Hazardous Substances on the property only in quantities necessary to satisfy Tenant's
reasonably anticipated needs. Tenant shall comply with all Environmental Laws and exercise the highest
degree of care in the use, handling, and storage of Hazardous Substances and shall take all practicable
measures to minimize the quantity and toxicity of Hazardous Substances used, handled, or stored on the
property.
Should any on-site activities require a Storm Water Pollution Prevention Plan (SWPPP),
KIB shall be provided a copy of the Alaska Department of Environmental Conservation approved plan.
C. Other Waste. Depositing, maintaining, or permitting to be maintained or to accumulate any
household wastewater, sewage, garbage, or other waste is prohibited. Tenant is responsible for treatment
and disposal of all waste, sewage, garbage, or other waste, in compliance with ADEC requirements.
o Use of a pit privy is not permitted.
o Manure management shall be in accordance with State of Alaska, Division of
Environmental Health, Solid Waste Program guidelines.
VI. Abandonment of Premises.
Tenant shall not vacate or abandon the Premises at any time during the term hereof; if Tenant shall
abandon, vacate or surrender the Premises, or be dispossessed by process of law, or otherwise, any
personal property belonging to Tenant and left on the Premises shall be deemed to be abandoned, at the
option of Landlord.
VII. Landlord's Right of Entry.
Tenant shall permit Landlord and the agents and employees of Landlord to enter into and upon the
demised Premises at all reasonable times for the purpose of inspecting the same, without any rebate of
rent and without any liability to Tenant for any loss of occupation or quiet enjoyment of the Premises thereby
occasioned.
VIII. Use of Material.
Tenant shall not sell or remove for use of the Premises any timber, stone, gravel, peat moss, topsoil,
or any other material valuable for building or other commercial purposes, provided, however, that material
may be used only to the extent that Landlord could use, if required, for the development of the leasehold.
Any removal of such material from the leasehold shall require written approval from the KIB Manager and,
for instances involving a commercial quantity, the market value shall be paid to the Landlord or to the owner
of the subsurface rights, as the case may be.
IX. Subletting and Assignment.
Tenant shall not sublet or assign or transfer this Lease, or any interest in it, without the prior written
consent of the KIB Manager, and a consent to an assignment or sublease shall not be deemed to be a
consent to any subsequent assignment or sublease. Any such assignment or sublease without such
consent shall be void, and shall, at the option of Landlord, terminate this Lease. Neither this Lease nor the
leasehold estate of Tenant nor any interest of Tenant hereunder in the Premises or any building or
improvements on the Premises shall be subject to involuntary assignment, transfer, or sale, or to
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assignment, transfer, or sale by operation of law in any manner whatsoever, and any such attempted
involuntary assignment, transfer, or sale shall be void and of no effect and shall, at the option of Landlord,
terminate this Lease.
Provided, however, that the Tenant may continue to assign or sublet rights to use the racetrack
located on this property to the nonprofit corporation Kodiak Island Racing Association, Inc., (KIRA) so long
as that entity agrees to comply with all terms of this Lease. Use of the property by KIRA does not relieve
Tenant of responsibility to comply with all terms of this Lease, and Tenant remains responsible for KIRA's
compliance with all terms of this Lease.
X. Notices.
All notices, demands, or other writings in this Lease provided to be given or made or sent, or which
may be given or made or sent, by either party hereto the other, shall be deemed to have been fully given
or made or sent when made in writing and deposited in the United States mail, registered and postage
prepaid, and addressed as follows:
To Landlord
Kodiak Island Borough
Attention: Borough Manager
710 Mill Bay Road
Kodiak, Alaska 99615
To Tenant:
Kodiak Rodeo & State Fair, Inc.
Attention: President
Post Office Box 507
Kodiak, Alaska 99615
Xl. Taxes and Assessments.
A. Taxes as Additional Rental. As additional rental hereunder, Tenant shall pay and
discharge as they become due, promptly and before delinquency, all taxes, assessments, rates, charges,
license fees, municipal liens, levies, or excises, whether general or special, or ordinary or extraordinary, of
every name, nature and kind whatsoever, including all governmental charges of whatsoever name, nature,
or kind, which may be levied, assessed, charged, or imposed, or which may become a lien or charge on or
against the Premises, or any part of the Premises, the leasehold of Tenant herein, any building or buildings,
or any other improvements now or hereafter thereon, or on or against Tenant's estate hereby created which
may be a subject of taxation, or on or against Landlord by reason if its ownership of the surface estate
underlying this Lease, during the entire term hereof, excepting only those taxes hereinafter specifically
excepted.
B. Contesting Taxes. If Tenant shall in good faith desire to contest the validity or amount of
any tax, assessment, levy, or other governmental charge herein agreed to be paid by Tenant, Tenant shall
be permitted to do so, and to defer payment of such tax or charge, the validity or amount of which Tenant
is so contesting, until final determination of the contest, on giving to LANDLORD written notice thereof prior
to the commencement of any such contest, which shall be at least thirty (30) days prior to delinquency.
C. Disposition of Rebates. All rebates on account of such taxes, rates, levies, charges, or
assessments required to be paid and paid by Tenant under the provisions hereof shall belong to Tenant,
and Landlord will, on the request of Tenant, execute any receipts, assignments, or other acquittances that
may be necessary in the Premises in order to secure the recovery of any such rebates, and will pay over
to Tenant any such rebates that may be received by Landlord.
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D. Receipts. Tenant shall obtain and deliver receipts or duplicate receipts for all taxes,
assessments, and other items required hereunder to be paid by Tenant, promptly on payment thereof.
XII. Construction of Buildings and Other Improvements.
Prior to constructing, altering, improving, charging or placing any buildings or improvements on the
Premises, Tenant shall, at Tenant's sole expense, prepare plans and specifications describing the proposed
work. Such plans and specifications shall be submitted to Landlord for Landlord's written approval or any
revisions required by Landlord. Landlord shall not unreasonably withhold such approval. In the document
approving the plans and specifications, Landlord shall specify the time within which work is to commence
and the time within which the work is to be completed. In the event Landlord does not approve the plans
and specifications, Landlord shall give to Tenant an itemized statement of reasons. For purposes of the
paragraph the term "buildings and improvements" includes, by example and not limitation, buildings to be
moved to or erected on the Premises which shall provide for and support the uses described herein. Tenant
shall be responsible for compliance with any applicable laws and to obtain any permits required for work
under this section.
XIII. Repairs of Improvements.
A. Tenant acknowledges that it will have the possession of the Premises and will be in the
best position to assure that the Premises and improvements are well maintained. Therefore, Tenant shall,
throughout the terms of this Lease, keep and maintain the Premises, including all buildings and
improvements of every kind which may be on the Premises, and all appurtenances to those buildings and
improvements, including adjacent sidewalks, in good, sanitary, and neat order, condition and repair, and,
except as specifically provided herein, restore and rehabilitate any improvements of any kind which may
be destroyed or damaged by fire, casualty, or any other cause whatsoever except damage caused by
Landlord's agents while exercising Landlord's right of entry (Paragraph VII, above) and right of way
(Paragraph XXVI, below). While Tenant is a nonprofit volunteer organization, it is expected to use the
Premises in such a manner to generate adequate revenue to provide funds for routine maintenance.
B. Landlord shall not be obligated to make any repairs, replacements, or renewals of any kind,
nature, or description, whatsoever to the Premises or any buildings or improvements on the Premises,
except damage caused by Landlord's agents while exercising Landlord's right of entry (Paragraph VII,
above) and right of way (Paragraph XXVI, below).
XIV. Utilities.
Tenant shall fully and promptly pay for all water, gas, heat, light, power, and other public utilities of
every kind furnished to the Premises throughout the term of this Lease, and all other costs and expenses
of every kind whatsoever of or in connection with the use, operation, and maintenance of the Premises and
all activities conducted thereon, and Landlord shall have no responsibility of any kind for any of these costs
or expenses.
QVV�
Tenant shall keep all and every part of the Premises and all buildings and other improvements at
any time located on the Premises free and clear of any and all mechanics', materialmen's, and other liens
for or arising out of or in connection with:
1. work or labor done, services performed, or materials or appliances used or
furnished for or in connection with any operations of Tenant; or
2. any alteration, improvement, or repairs or additions which Tenant may make or
permit or cause to be made, or any work or construction, by, for, or permitted by Tenant on or about the
Premises; or
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3. any obligations of any kind incurred by Tenant.
Tenant shall, at all times, promptly and fully pay and discharge any and all claims on which any lien
may or could be based, and to indemnify Landlord and all of the Premises and all buildings and
improvements on the Premises against all such liens and claims of liens and suits or other proceedings.
XVI. Indemnification of Landlord.
Landlord shall not be liable for any loss, injury, death, or damage to persons or property which at
any time may be suffered or sustained by Tenant or by any person whosoever may at any time be using or
occupying or visiting the demised Premises or be in, on, or about the same, whether such loss, injury,
death, or damage shall be caused by or in any way result from or arise out of any act, omission, or
negligence of Tenant or of any occupant, Subtenant, visitor, or user of any portion of the Premises, or shall
result from or be caused by any other matter or thing whether of the same kind as or of a different kind than
the matters or things above set forth, and Tenant shall defend and indemnify Landlord against all claims,
liability, loss, or damage whatsoever on account of any such loss, injury, death, or damage except loss,
injury, death or damage caused by right of way (Paragraph XXVI, below). Tenant hereby waives all claims
against Landlord for damages to the building and improvements that are now on or hereafter placed or built
on the Premises and to the property of Tenant in, on, or about the Premises, and for injuries to persons or
property in or about the Premises, for any cause arising at any time except loss, injury, death or damage
caused by Landlord's agents while exercising Landlord's right of entry (Paragraph VII, above) and right of
way (Paragraph XXVI, below).
XVII. Attorneys' Fees.
If any action at law or in equity shall be brought for or on account of any breach of, or to enforce or
interpret any of the covenants, terms, or conditions of this Lease, or for the recovery of the possession of
the demised Premises, the prevailing party shall be entitled to recover from the other party as part of the
prevailing party's costs a reasonable attorneys' fee, the amount of which shall be fixed by the court and
shall be made a part of any judgment or decree rendered.
XVIII. Redelivery of Premises.
Tenant shall pay all sums required to be paid by Tenant hereunder in the amounts, at the times,
and in the manner provided in this Lease, and shall keep and perform all the terms and conditions of this
Lease on its part to be kept and performed, and, at the expiration or sooner termination of this Lease,
peaceably and quietly quit and surrender to Landlord the Premises in good order and condition subject to
the other provisions of this Lease. In the event of the non-performance by Tenant, of any of the covenants
of Tenant undertaken herein, this Lease may be terminated as herein provided.
XIX. Remedies Cumulative.
All remedies hereinbefore and hereafter conferred on Landlord shall be deemed cumulative and
no one exclusive of the other, or of any other remedy conferred by law.
XX. Insurance.
A. Insurance Coverage of Premises. Tenant shall, at all times during the term of this Lease
and at Tenant's sole expense, keep all improvements which are now or hereafter a part of the Premises
insured against loss or damage by fire and extended coverage hazards for one hundred percent (100%) of
the full replacement value of such improvements, with loss payable to Landlord and Tenant as their interests
may appear. Any loss adjustment shall require the written consent of both Landlord and Tenant.
B. General Liability Insurance. Tenant shall maintain in effect throughout the term of this
Lease liability insurance covering the Premises and its appurtenances in the amount of Two Million Dollars
and 00/100 ($2,000,000.00) for injury to or death of any person or persons in one occurrence, and property
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damage liability insurance in the amount of One Million Dollars and 00/100 ($1,000,000.00). Such
insurance shall specifically insure Tenant against all liability assumed by it hereunder, as well as liability
imposed by law, and shall insure both Landlord and Tenant but shall be so endorsed as to create the same
liability on the part of the insurer as though separate policies had been written for Landlord and Tenant.
C. Cost of Insurance Deemed Additional Rental. The cost of insurance required to be carried
by Tenant in this section shall be deemed to be Additional Rent hereunder.
XXI. Prohibition of Involuntary Assignment; Effect of Bankruptcy, or Insolvency.
A. Prohibition of Involuntary Assianment. Neither this Lease nor the leasehold estate of
Tenant nor any interest of Tenant hereunder in the Premises or in the buildings or improvements on the
Premises shall be subject to involuntary assignment, transfer, or sale, or to assignment, transfer, or sale by
operation of law in any manner whatsoever (except through statutory merger or consolidation, or devise)
and any such attempt at involuntary assignment, transfer, or sale shall be void and of no effect.
B. Effect of Bankruptcy. Without limiting the generality of the provisions of the preceding sub-
section (A) of this Section XXI, Tenant agrees that in the event any proceedings under the Bankruptcy Act
or any amendment thereto be commenced by or against tenant, and, if against Tenant, such proceedings
shall not be dismissed before either an adjudication in bankruptcy or the confirmation of a composition,
arrangement, or plan or reorganization, or in the event Tenant is adjudged insolvent or makes an
assignment for the benefit of its creditors, or if a receiver is appointed in any proceeding or action to which
Tenant is a party, with authority to take possession or control of the Premises or the business conducted
thereon by Tenant, and such receiver is not discharged within a period of thirty (30) days after his
appointment, any such event or any involuntary assignment prohibited by the provisions of the preceding
sub-section (A) of this section shall be deemed to constitute a breach of this Lease by Tenant and shall, at
the election of Landlord, but not otherwise, without notice or entry or other action of Landlord terminate this
Lease and also all rights of Tenant under this Lease and in and to the Premises and also all rights of any
and all persons claiming under Tenant.
XXII. Notice of Default.
A. Major Defaults. The obligations and responsibilities of Tenant as described in Paragraphs
VIII (Use of Material), XX (Insurance), and XXI (Prohibition of Involuntary Assignment; Effect of Bankruptcy
or Insolvency) of this Lease are of major importance to Landlord. Tenant shall be in default of its obligations
under this Lease if any of the events required by or prohibited by those paragraphs. Prior to exercising its
remedies as described in Paragraph XXIII, Landlord shall first give to Tenant five (5) days' written notice of
the default. If Tenant does not cure the default, Landlord may proceed with its remedies as described in
Paragraph XXIII.
B. Default in Payments. Tenant shall be in default of its obligations under this Lease if it fails
to pay rent or any other moneys as required by this Lease. Prior to exercising its remedies as described in
Paragraph XXIII, Landlord shall first give to Tenant thirty (30) days' written notice of the default. Tenant
must cure the default within those thirty (30) days. If Tenant does not cure the default, Landlord may
proceed with its remedies as described in Paragraph XXIII.
C. Other Defaults. Tenant shall not be deemed to be in default of any of its other obligations
under this Lease unless Landlord shall first give to Tenant sixty (60) days' written notice of such default,
and Tenant fails to cure such default within such sixty-day period. If Tenant does not then cure the default,
Landlord may proceed with remedies as described in Paragraph XXIII. If the default is of such a nature
that it cannot be cured within sixty (60) days, Tenant must commence to cure the default within such period
of sixty (60) days and provide Landlord in writing, during the original sixty (60) day notice period, with the
date by which default will be cured. If Tenant does not cure the default by that date, Landlord may proceed
with its remedies as described in Paragraph XXIII.
XXIII. Landlord's Remedies upon Tenant's Default.
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A. Re-entry. Subject to the notice requirements of Paragraph XXI I, in the event of any default
or breach of this Lease by Tenant, Landlord, in addition to the other rights or remedies it may have, shall
have the immediate right of re-entry and may remove all persons and property from the Premises; such
property may be removed and stored in a public warehouse or elsewhere at the cost of, and for the account
of Tenant. Should Landlord elect to re-enter, as herein provided, or should it take possession pursuant to
legal proceedings or pursuant to any notice provided for by law, Landlord may either terminate this Lease
or it may from time to time, without terminating this Lease, re -let the Premises or any part of the Premises
for such term or terms (which may be for a term extending beyond the term of this Lease) and at such rental
or rentals and on such other terms and conditions as Landlord in the sole discretion of Landlord may deem
advisable with the right to make alterations and repairs to the Premises.
B. Right to Perform. Alternatively, in the event of any default or breach of this Lease by Tenant
and Tenant's failure to cure as required by Paragraph XXII, then Landlord may, but shall not be required
to, do or perform or cause to be done or performed such act or thing (entering on the Premises for such
purposes, if Landlord shall so elect), and Landlord shall not be or be held liable or in any way responsible
for any loss, inconvenience, annoyance, or damage resulting to Tenant on account thereof, and Tenant
shall repay to Landlord on demand the entire expense thereof, including compensation to the agents and
employees of Landlord. Any act or thing done by Landlord pursuant to the provisions of this section shall
not be or be construed as a waiver of any such default by Tenant, or as a waiver of any covenant, term, or
condition herein contained or the performance thereof, or of any other right or remedy of Landlord, under
this Lease, or otherwise.
C. Interest. All amounts payable by Tenant to Landlord under any of the provisions of this
Lease, if not paid when the same become due as in this Lease provided, shall bear interest from the date
they become due until paid at the rate of 10.5 percent per annum (10.5%), compounded annually.
XXIV. Surrender of Lease.
Upon termination of the Lease, the Tenant shall peaceable and quietly leave, surrender, and yield
up unto Landlord all of the demised Premises. The voluntary or other surrender of this Lease by Tenant,
or a mutual cancellation of the Lease, shall not work a merger, and shall, at the option of Landlord, terminate
all or any existing subleases or subtenancies, or may, at the option of Landlord, operate as an assignment
to it of any or all such subleases or subtenancies.
XXV. Disposition of Improvements on Termination of Lease.
A. If the expiring leasehold is not to be re -offered for Lease, the following schedule shall apply:
1. Subject to Paragraph XXIII(A), improvements owned by the Tenant shall, within
ninety (90) calendar days after the termination of the Lease, be removed by Tenant, provided such removal
will not cause injury or damage to the Premises or improvements, and further provided that the KIB Manager
may extend the time for removing such improvements in cases where hardship is proven. All periods of
time granted to Tenant to remove improvements are subject to Tenant's paying to the Landlord pro rata
lease rentals for the period.
2. If any improvements or chattels not owned by Tenant which have an appraised
value in excess of five thousand dollars, as determined by the Landlord assessor or appraiser, are not
removed within the time allowed, such improvements or chattels shall, upon thirty (30) days' notice to
Tenant, be sold at public sale under the direction of the KIB Manager. The proceeds of the sale shall inure
to the Tenant if it placed the improvements or chattels on the Premises, after deducting for Landlord's rents
due and owing, expenses incurred in making such sale and any other sums owed to Landlord under this
Lease. If no responsible bids are received, title to such improvements or chattels shall vest in the Landlord.
3. If any improvements or chattels having an appraised value of Five Thousand
Dollars and 00/100 ($5,000.00) or less, as determined by the KIB assessor or appraiser, are not removed
GROUND LEASE - KRSF Fairgrounds Lease — Page 8 of 11
within the time allowed, such improvements and chattels shall revert to, and absolute title shall vest in, the
Landlord.
B. If the expiring leasehold is to be re -offered for lease or sale within one year of the Lease
termination, and the improvements have been allowed to remain in place, Landlord shall state when re-
offering the real property:
The estimated value of the authorized improvements remaining on the land placed
there by Tenant
2. That the purchaser or new Tenant will be required, as a condition of the sale or
lease, to purchase the improvements from Tenant for an amount equal to the value specified.
XXVI. Right -Of -Way.
Landlord expressly reserves the right to reasonable ingress or egress over and across the demised
Premises for the purposes of construction, repairing, maintaining, or replacing any utility or road right-of-
way which Landlord is authorized to construct or maintain and to grant to itself reasonable easements over
and through the demised Premises for these purposes. Annual rentals may be adjusted to compensate
Tenant for loss of use of the demised Premises. Landlord agrees to coordinate with Tenant to minimize
the disruption to Tenant's use and enjoyment of the Premises. This includes co -locating any roads with the
road utilized by Tenant. To prevent the disruption in any of Tenant's scheduled events, Tenant will provide
Landlord with a schedule of events on a quarterly basis. Landlord agrees that is will not make or allow the
use to be made of any rights-of-way during a Tenant scheduled event, except in an emergency situation.
Landlord reserves the right to grant easements or rights-of-way over and across leased land if it is
determined in the best interest of the Landlord to do so. If Landlord grants an easement or right-of-way
across any of the Premises, Tenant shall be entitled to damages for all Tenant -owned improvements
destroyed or damaged. Damages shall be limited to improvements only, and loss shall be determined by
fair market value. Annual rentals may be adjusted to compensate Tenant for loss of use of the Premises.
XXVII. Waiver.
The waiver by either party of, or the failure of either party to take action with respect to any breach
of any term, covenant, or condition herein contained by the other party shall not be deemed to be a waiver
of such term, covenant, or condition, or subsequent breach of the same, or any other term, covenant, or
condition therein contained. The subsequent acceptance of rent hereunder by Landlord shall not be
deemed to be a waiver of any preceding breach by Tenant or Landlord of any term, covenant, or condition
of this Lease, other than the failure of Tenant to pay the particular rental so accepted, regardless of
Landlord's knowledge of such preceding breach at the time of acceptance of such rent. The subsequent
payment of rent hereunder by Tenant shall not be deemed to be a waiver of any preceding breach by
Landlord of any term, covenant, or condition of this Lease regardless of Tenant's knowledge of such
preceding breach at the time of payment of such rent.
XXVIII. Parties Bound.
The covenants and conditions herein contained shall, subject to the provisions as to assignment,
transfer, and subletting, apply to and bind the successors, administrators, and assigns of all of the Parties
hereto; and all of the Parties hereto shall be jointly and severally liable hereunder.
XXIX. Time of the Essence.
Time is of the essence of this Lease, and of each and every covenant, term, condition and provision
hereof.
XXX. Captions.
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The captions of this Lease are for convenience only and are not a part of this Lease and do not in
any way limit or amplify the terms and provisions of this Lease.
XXXI. Condition of Premises.
Tenant acknowledges that it has inspected the Premises and is fully satisfied with the physical
condition of such Premises and any fixtures and improvements located on the Premises. The Premises
are provided "AS -IS" without any representation as to their suitability for Tenant's purposes or for any
purposes. Tenant takes the Premises at its own risk.
XXXII. Quiet Enjoyment.
If Tenant is not in default under this Lease, Tenant may peacefully enjoy the Premises during the
term of this Lease.
XXXIII. Enforceability.
If any part of this Lease is deemed invalid or unenforceable, the balance of this Lease shall remain
effective, absent the unenforceable provision.
XXXIV. Amendment.
No change in this Lease shall be effective unless it is in writing and signed by both Landlord and
Tenant.
XXXV. Governing Law.
The laws of the State of Alaska shall govern the interpretation, validity, performance and
enforcement of this Lease. Venue for any action under this Lease shall be in the Third Judicial District at
Kodiak, Alaska.
IN WITNESS WHEREOF, the Parties have executed this Lease at Kodiak, Alaska on the day and
year first above written.
LANDLORD
Kodiak Island Borough
1
Aimee Williams, Borough Manager
A T
aw�-
No,fa Javier MMC, Borough Clrk
/ TENANT
Kodiak Rodeo and State air, Inc.
a°9lgSKA��°�
Name: Malachi Stohl President
GROUND LEASE - KRSF Fairgrounds Lease — Page 10 of 11
ACKNOWLEDGMENT
STATE OF ALASKA )
)ss:
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on the 31(aday of Wiq , 2025, before me, the undersigned, a
Notary Public in and for the State of Alaska, duly commissioned and sworn, personally appeared Aimee
Williams, to me known and known to me to be the identical individual described in and who executed the
within and foregoing instrument as Manager of the Kodiak Island Borough and he acknowledged to me
that she signed the same in the name of and for and on behalf of said municipality, freely and voluntarily
and by authority of its Assembly for the uses and purposes therein mentioned.
WITNESS my hand and official seal the day and year first above written.
a 1AAJ AAAn7
Notary Public for Alaska /�
My Commission Expires: Wlko 60T u'
ACKNOWLEDGMENT
STATE OF ALASKA ) N07AR`t Pt�F3LIC
THIRD JUDICIAL DISTRICT
THIS IS TO CERTIFY that on the 30 day of OtAo`o-r, 2025, before me, the undersignee ,�
Notary Public in and for the State of Alaska, duly commissioned and sworn, personally appeared
Malachi Stahl , to me known and known to me to be the identical individual described in
and who executed the within and foregoing instrument as President of Kodiak Rodeo and State Fair, Inc.
and they acknowledged to me that the same was signed in the name of and for and on behalf of said
corporation, freely and voluntarily and by authority of its Board of Directors for the uses and purposes
therein mentioned.
WITNESS my hand and official seal the day and year first above written.
Notary Public
MARY L. HECKERMAN �—
State of Alaska Nota P lic f tate of Alaska
My Commission Expires 1010112027 rY
My Commission xpires: 06.2
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