HomeMy WebLinkAboutResolution 8896RESOLUTION 8896
CITY OF MOUNDS VIEW
COUNTY OF RAMSEY
STATE OF MINNESOTA
AUTHORIZE EXECUTION OF AN AGREEMENT TO EXTEND TERM
OF EXISITNG LEASE FOR AN ADDITIONAL FIVE YEARS
WHEREAS, the City of Mounds View, as landlord ("Landlord"), and Creative Kids
Academy — Mounds View, Inc., a Minnesota corporation, as tenant ("Tenant') entered
into a lease assignment agreement dated December 22, 2008 ("Assigned Lease") which
modified the original lease agreement dated November 20, 2006; and
WHEREAS, the expiration date of the Assigned Lease was July 31, 2011; and,
WHEREAS, on May 9, 2011, the City Council approved Resolution 7778
authorizing a two-year extension of the Assigned Lease through July 31, 2013; and
WHEREAS, on July 22, 2013 the City Council approved Resolution 8125
authorizing a five-year extension of the Assigned Lease through July 31, 2018; and
WHEREAS, both parties, Landlord and Tenant, desire to extend the existing lease
for a five-year period such that the new expiration date would be July 31, 2023 by
executing the document entitled Extension of Lease Agreement ("Agreement') which is
attached hereto as Exhibit A; and,
WHEREAS, with the exception of the expiration date of the lease, rent, property
taxes, and shared costs associated with the use of the dishwasher, all terms and
provisions of the Lease as assigned remain unchanged.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Mounds View, Ramsey County, Minnesota that the Agreement is deemed acceptable
and the Mayor and City Administrator are authorized to execute the Agreement and to
take all necessary and reasonable steps to effectuate the Agreement.
Adopted this 22nd day of January, 2018
L li/L�-l� ,lZM AI
Carol A. Mueller, Mayor
ATTEST J,
Nyle ikmu id, City Administrator
(seal)
EXHIBIT A
EXTENSION OF LEASE AGREEMENT
This Extension of Lease Agreement (the "Lease Extension") is made and entered into this
day of Ak-A V 2018, between the City of Mounds View, a Minnesota municipal
corporation ("Landlord") dnd Creative Kids Academy — Mounds View, Inc., a Minnesota corporation
("Tenant") and amends the Lease Agreement, dated November 20, 2006 (the "Lease") and the
Assignment, Assumption and Consent Agreement to Lease (the "Assignment") dated December 22,
2008.
RECITALS
A. The Landlord owns a community center building located on land located at 5394
Edgewood Drive, Mounds View, Minnesota 55112 (the "Premises").
B. Pursuant to the Lease, Creative Kids Child Care Center II, a Minnesota corporation,
leased classrooms, an office and the tot lot on the Premises from the Landlord for the purposes of
operating a child care center.
C. On December 22, 2008, the Assignment was entered into between the Landlord and
Creative Kids Child Care Center H and the Tenant. The Assignment assigned Creative Kids Child
Care Center II's rights, title and interest in the Lease to the Tenant.
D. The Landlord and Tenant have agreed to extend the term of the Lease and this Lease
Extension sets forth the terms of such extension.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which each party hereby acknowledges, the parties agree as follows:
ARTICLE 1
Term
Section 1.2 of the Lease is deleted and replaced with the following:
Section 1.2. Term. The term of this Lease and Tenant's obligation to pay rent hereunder shall
continue until July 31, 2023, at which time the Lease shall expire. Notwithstanding any contrary
provision contained herein, upon at least one (1) years prior written notice from Landlord to Tenant,
Landlord shall have the right to terminate this Lease and upon expiration of such notice period, the
term of this Lease shall automatically terminate.
ARTICLE 2
Rent
Section 2.1 and 2.3 of the Lease is deleted and replaced with the following:
Section 2.1 RENT. Tenant agrees to pay as rent to Landlord at 2401 Mounds View Blvd.,
Mounds View, MN 55112, or such other place as the Landlord may from time to time designate in
writing, one hundred thirty-two thousand dollars ($132,000) per year payable in advance in twelve
equal monthly installments of eleven thousand dollars ($11,000) on or before the first day of each
month during the term hereof for the Demised Premises and for the Shared Space; provided that with
respect to any partial month, Rent shall be adjusted accordingly.
Section 2.3 PROPERTY TAXES The Tenant shall be responsible to pay to the Landlord the
amount due for property taxes each year on the Demised Premises in two installments. The first
installment is due on or before April 30' and the second installment is due on or before September
30".
ARTICLE 3
Shared Space
Article VI of the Lease is amended by the addition of the following:
Section 6.2. DISHWASHER. Tenant shall be responsible for 50% of the costs associated
with the operation, maintenance, and repair of the dishwasher in the kitchen common space, to include
detergents, other chemical products, and physical repairs of equipment.
ARTICLE 4
Miscellaneous
Section 3.1. Effective Date. This Lease Extension shall be effective as of the date written
on the previous page.
Section 3.2. Certain Defined Terms. Terms used in this Lease Extension and not defined
herein shall have the meanings given in the Lease.
Section 3.3. No Default. Landlord acknowledges that, as of the date hereof, Tenant is not
in default of any term or condition of the Lease. Nothing contained in this Lease Extension shall be
deemed to excuse any default by Tenant in the future.
Section 3.4. Confirmation of Lease. Except as specifically amended by this Lease Extension,
the Lease remains unchanged, is hereby ratified and confirmed, and remains in full force and effect.
IN WITNESS WHEREOF, the parties have executed this Lease Extension as of the day and
year first above written.
TENANT:
CREATIVE KIDS ACADEMY —
MOUNDS VIEW, INC.
y:
Rajiv Garg
Its: President
LANDLORD:
CITY OF MOUNDS VIEW
By;47//l 'I'ya�
Carol A. Mueller
Its: Mayor ,
Its: City Administrator