Montezuma County Speedway Contract
submitted by Sherry Simmons for the community to view
RACE TRACK LEASE
THIS LEASE AGREEMENT is between Montezuma County (Landlord) and
1. Landlord is the owner of real property, along with improvements and fixtures incorporated
therein, located in Montezuma County, Colorado, described as the County Fairgrounds;
2. The Fairgrounds includes a race track and an accompanying parking area that is the
subject of this lease. See Exhibit 1.
3. Tenant desires to lease the race track to use for motorized events.
4. Landlord agrees to lease the race track to Tenant for use as a race track for motorized
events on the terms and conditions set forth below.
5. Tenant may use race track for non-motorized events with the approval of the Landlord’s
6. Leased Property. Landlord leases to Tenant the race track on the terms and conditions of
this Lease. Tenant's right to use of the Property under the terms of this Lease is expressly
limited to the express terms in this agreement. Tenant agrees that all improvements existing at
the race track are the property of Landlord, as well as any additional improvements and
fixtures become property of Landlord.
7. Term. This Lease commences on April 1, 2022 and ends March 31, 2023. Upon termination
of the Lease, Tenant shall surrender and deliver the Premises forthwith, along with all
improvements and fixtures, in good order, repair and condition to Landlord.
8. Rent. Tenant shall pay Landlord rent for the term of this Lease in the amount of $15,000,
due at signing
9. Security Deposit. Tenant will pay an additional deposit for the County’s security of $1000.
10. Expenses and Taxes. Except as provided in this lease, all costs, expenses, utilities, and
obligations of every kind or nature whatsoever, relating to the race track, or any
improvements thereon, which may arise or become due during the term of this Lease, shall
be paid by Tenant, and Landlord shall be indemnified and saved harmless by the Tenant
from and against the same. Landlord shall be responsible for utilities at the Premises that
are not related to race track use under this lease. Tenant shall place all utilities into his/her
name and shall be responsible for payment of all utilities throughout the lease term. In the
event that the Landlord or a third party utilizes the race track for any period of time, Tenant
shall work with utility companies to calculate utility use during the period of time that the
Landlord or a third party is utilizing the track. Landlord shall fully reimburse Tenant for
utilities used during the time that Landlord or Tenant is in control of the track.
11. Permitted Use of the Race track. Tenant shall use the race track exclusively for operation of
car racing, which may include incidental storage as approved in writing the County. Tenant
shall not, without prior written consent of Landlord, permit the Premises to be used for any
other purpose. Landlord does not warrant or represent that the property is suitable for
Tenant's proposed uses, or that Tenant's anticipated uses are allowed under the law. Tenant
is solely responsible for securing any necessary permits, licenses and other approvals. Such
use shall not interfere with the rights of the public and other Fairgrounds uses.
12. Security for Race Track Events. Tenant shall provide, and pay all costs associated with, on-
site security at the race track during all events that are hosted by Tenant during the duration
of this lease. Such security shall consist of two certified law-enforcement personnel and
two non-certified law-enforcement personnel. Tenant shall ensure that required law
enforcement personnel are on-site at the racetrack during all times that fans and other
members of the public are present at the race track.
13. Blackout Dates. Tenant shall not have access to, or utilize, the premises during the
following special events:
a. 12 Hours of Mesa Verde Bike Race – May 7, 2022.
b. Ute Mountain Roundup Rodeo – June 8, 2022 – June 12, 2022.
c. Montezuma County Fair – Dates yet to be confirmed – Presumably July 18, 2022 –
August 5, 2022.
d. High School Rodeo – September 2, 2022 – September 5, 2022.
Throughout the period of time of each of the blackouts listed above, Landlord shall have
the right to access, and the right to allow third parties to access and use, the racetrack.
Landlord warrants that the racetrack will be returned to useable condition immediately
following each of the proposed blackout dates.
14. Landlord's Operation of premises: Landlord shall be entitled to use the entire Fairgrounds
and the race track, for any and all purposes either required or associated with its operation
and maintenance. Tenant acknowledges and agrees that Landlord retains all rights and
discretion, and is solely responsible for all decisions, expenses, and determinations
pertaining to its operation and maintenance. Landlord provides no warranties, assurances or
guarantees with regard to and in making its decisions, and Landlord is under no obligation
to take into consideration Tenant's business or concession operations, and shall not be
liable to Tenant for any impact thereon from Landlord's operation decisions. Tenant further
agrees that Landlord shall have full authority and discretion over, and the right to prohibit,
all or in part, any use of within the Property, including restrictions that violate noise and
pollution laws, inspection requirements, and timing of events. Landlord will make
reasonable attempts to communicate with Tenant and provide reasonable prior notice, if
possible, before undertaking significant actions, or making significant changes.
15. Condition of Premises and Representations: Tenant is familiar with the physical condition
of the race track and premises. Landlord makes no representations, or warranties as to the
physical condition, or their suitability for Tenant's intended use. The race track is rented
"as is," in current condition, and all warranties are hereby expressly disclaimed. Landlord
makes no representations, or warranties as to the suitability of the Premises for Tenant's
intended use. Landlord further makes no representations, or warranties as to whether
Tenant's intended use will necessitate changes, or alterations to the Premises in order to
comport with local, state, or federal laws and regulations. Such laws and regulations include,
but are not limited to: health code regulations, access regulations (including, but not limited
to, the Americans with Disabilities Act), and zoning regulations. Tenant understands and
agrees that in the event actions, alterations, or improvements are required in order to bring
the Premises into compliance with any local, state, or federal laws and regulations because
of Tenant's intended use, Tenant shall be solely responsible for any and all associated costs
and expenses relative thereto. Tenant further indemnifies and agrees to hold Landlord harmless
from any and all claims and liabilities that may arise by virtue of Tenant's use of the Premises in
violation of any local, state, or federal laws and regulations.
16. Environmental Matters. Tenant shall not use or permit the Premises to be used forthe
manufacture, storage, use, or disposal of any substance (Hazardous Material) classified or
categorized as a hazardous material or substance by any applicable federal, state or local
environmental safety law, regulation or ordinance (together Environmental Regulations),
nor will Tenant do or permit any act or omission on the Property that is in violation of any
a. Tenant shall indemnify and hold Landlord harmless from and against all costs, expense,
losses, liabilities and damages of any nature (including without limitation response and
remediation costs, attorney's fees, consultant's and expert fees) in any way arising from
or related to the permitted use or storage on the Premises of Hazardous Material, plus
from and against any violation of Tenant's promises contained in this Lease, during the
Term of this Lease. Tenant shall have no liability for the use or storage of Hazardous
Materials on the Premises which may have occurred prior to use of the premises.
b. The provisions of this Section shall survive the termination of this Lease by expiration
of the Term or otherwise. Tenant shall immediately provide to Landlord a copy of any
notice relative to the Premises or its occupation in any way relating to any
c. Tenant shall not do or permit any act or omission on the Premises associated with
Hazardous Material or Environmental Regulations that would increase the cost of
casualty insurance on the Premises. Tenant shall not conduct or permit any activity on
the Premises that would cause the Property to become a hazardous waste treatment,
storage or disposal facility within the meaning of any Environmental Regulations or
cause or permit any release or threat of release in or in the vicinity of the Premises of
17. Landlord Access. Landlord, or Landlord's agents and designees, will have the right, but not
the obligation, to enter upon the Premises at all reasonable times to examine the Property to
confirm Tenant's compliance with the terms of this Lease.
a. Annual Inspection. Landlord may conduct inspections with Tenant of the Premises to
ascertain the condition thereof and Tenant's compliance with the requirements of this
Lease, and to identify repairs Tenant is required to complete and to determine the
timeline for their completion.
18. Existing Improvements.
a. Tenant acknowledges that it has fully inspected the Premises, and on the basis of such
inspections, Tenant hereby accepts the Premises, as is, as suitable for the purposes for
which the same are leased.
b. Tenant shall not remove improvements installed by Tenant from the Premises unless
Landlord otherwise agrees in writing.
19. Public Authority and Legal Compliance. During the term of this Lease, Tenant shall, at its
own cost and expense, promptly observe and comply with all present and future laws,
ordinances, requirements, orders, directives, rules and regulations of state, county, and city
governments and of all other governmental authorities affecting the Property or
appurtenancesthereto, whether the same are in force at the commencement of this Lease or
may, in the future,be passed, enacted or directed, and Tenant will pay all costs, expenses,
liabilities, losses, damage, fines, penalties, claims and demands, including reasonable
counsel and expert and consulting fees, that may, in any manner, arise out of or be imposed
because of the failure of Tenant to comply with the covenants of this section. Tenant and its
licensees and invitees shall comply with and abide by all federal, state, and county laws and
ordinances in connection with the occupancy and use of the Premises. Tenant and its
licensees and invitees may not possess, or consume alcoholic beverages on the Premises
unless they are of legal age. No alcoholic beverages shall be sold upon the Premises unless
1) proper licenses have been obtained by Tenant and 2) approval from Landlord. No illegal
drugs or controlled substances (unless specifically prescribed by a physician for a specific
person occupying or present upon the Premises) shall be permitted upon the Premises.
Tenant hereby covenants and agrees to use its reasonable efforts to prevent and preclude its
employees, guests, invitees, etc. from the aforementioned illegal conduct. Tenant and its
licensees and invitees shall not use the Premises in any way that may result in an increase of
the rate or cost to the Landlord to insure the Property. No hazardous or dangerous activities
are permitted upon the Premises or on the Property.
20. Additional Prohibitions. Neither Tenant nor its licensees, volunteers, employees, guests, or
invitees shall act in any manner that would interfere with, or be a nuisance to, other users of
the Property, or adjacent property owners or that would interfere with those other parties'
quiet enjoyment of their premises. Said prohibition includes, but is not limited to,
unreasonably loud noises, loud music, noxious or unpleasant odors, and disruptive behavior
or actions. Tenant shall not permit any portion of the Premises to be used in a manner that
may endanger the person or property of Landlord, parties accessing the Property or any
person living on or near the Premises or Property. Tenant shall keep all portions of the
Premises in a clean, safe, and sanitary condition.
21. Storage/Trash. Tenant shall store all personal property entirely within the Premises without
written approval from Landlord. Tenant shall store all trash and refuse in adequate containers
within the Premises, which Tenant shall maintain in a neat and clean condition, or so as not
to be visible to members of the public in, or about the Property, and so as not to create any
health or fire hazard.
22. lndemnity and Insurance.
a. General Indemnification: Tenant shall indemnify Landlord and its trustees, agents
and employees for any and all liability, claims, demands, damage, penalties,
judgments, and costs and expenses of every kind and nature (including consequential and
punitive damages) arising from injury to person (including death) or property sustained by any
onein and about either the Premises or from Tenant's business due to the acts or omissions of
Tenant. Tenant further agrees to indemnify and hold harmless Landlord against any and all
claims, debts, demands, and obligations, which may be made against Landlord or against
Landlord's title in the Property, arising out of, or in connection with, any alleged act or
omission of Tenant or any person claiming under, by and through Tenant. Tenant shall further
indemnify Landlord and its officers, directors, managers, members, and employees from and
against any and all costs, counsel and expert and consulting fees incurred in connection with the
foregoing indemnification obligations, and any necessary enforcement thereof.
b. Negligent Damages: Tenant shall be responsible for and reimburse Landlord for any and
all damages to the Premises or Property and persons and property therein caused by the
negligent, grossly negligent, reckless, or intentional acts of itself, its employees, agents,
invitees, licensees, sublessees, or contractors.
c. Liability Indemnification/Insurance: Tenant shall hold Landlord, Landlord's agents, and
their respective successors and assigns, harmless and indemnified from all injury, loss,
claims, or damage to any person or property while on the Premises, or any other part of the
Property, or arising in any way out of Tenant's business, which is occasioned by a negligent,
intentional, or reckless act, or omission of Tenant, its employees, agents, invitees, licensees,
sublessees, or contractors. Tenant shall maintain public liability insurance insuring
Landlord and Landlord's agents, as their interest may appear, against all claims, demands,
or actions for injury to or death in an amount of not less than one million dollars
($1,000,000) arising out of any one occurrence, made by, or on behalf of any person, firm,
or corporation, arising from, related to, or connected with the conduct and operation of
Tenant's business, including, but not limited to, events on the Premises and anywhere upon
the Property, including appropriate cost of defense provisions for the benefit of Landlord.
Tenant shall also obtain coverage in the amountof one million dollars ($1,000,000) per
occurrence covering Tenant's contractual liability under the aforesaid indemnification
d. Fire/Hazard/Casualty Insurance: Tenant shall maintain in force a Fire and Hazard
insurance policy on the Premises at all times during the term of this lease in the amount
equal to the replacement costs of all improvements located therein. Landlord shall be the
sole beneficiary pursuant to the provisions of said policy. Provided however, that Landlord
will use up to 100% of said proceeds for the reconstruction or replacement of all damaged
improvements or fixtures at Tenant's option. Landlord shall have no obligation to rebuild
improvements to the extent that such reconstruction costs exceed the total insurance paid
to Landlord. Tenant shall maintain fire, extended coverage, vandalism, and malicious
mischief insurance and such other insurance as Tenant may deem prudent, covering all of
Tenant's stock in trade, fixtures, furniture, furnishings, floor coverings, and equipment in
e. Insurance Requirements: All of Tenant's insurance related to the Premises and the
Property shall be in the form and from responsible and well-rated companies satisfactory
to Landlord, shall name Montezuma County, the Montezuma County Fairgrounds, the
Montezuma County Board of County Commissioners, and Montezuma County’s
officers and employees as an additional insured thereunder, and shall provide that the<