CC RES 96-054 RESOLUTION APPROVING A LEASE BETWEEN THE CIFT OF ST. ANTHONY AND THE STE. MARIE COMPANY AND AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE SAID LEASE ON BEHALF OF THE CITY OF ST. ANTHONY

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D. Current Market Rent. To establish "current market rent" for purposes of Section 10(d) of the Data Sheet, during the period from 120 to 90 days prior to the Exercise Date, Landlord shall notify Tenant in writing of Landlord's determination of the current market rent for similar commercial property in the Minneapolis/St.Paul metropolitan area(the"Extended Term Rent Notice"). The current market rent as stated in the Extended Term Rent Notice shall be the rent applicable for the Option Term,unless,within sixty(60) days after receipt of the Extended Term Rent Notice (1) Landlord and Tenant agree to a different amount, or (2) Tenant shall notify Landlord in writing that it exercises its option to extend the Term for the Option Term and requests that the current market rent be established by appraisal. In the event such notice is given by Tenant,and provided Tenant is otherwise entitled to extend the Term of the Lease for the Option Term, Tenant shall be deemed to have exercised its option to so extend the Term of the Lease and Landlord and Tenant shall be bound to the determination of current market rent in accordance with the appraisal provisions of Section E of this Article 3. In the event current market rent is not finally determined by appraisal as provided in said Section E on or before the commencement date of the Option Term,Annual Minimal Rent shall be paid by Tenant in accordance with the amount as stated in the Extended Term Rent Notice until such time as the current market rent is determined by appraisal. In the event the current market rent as determined by appraisal is different than the amount paid by Tenant,an appropriate adjustment shall be made and Tenant or Landlord shall pay to the other, as appropriate, an amount such that Tenant shall have paid from the beginning of the Option Term Annual Minimal Rent as determined by the appraisal. E. Appraisal. Within fifteen(15)days after Tenant's notification to Landlord requesting appraisal,each party,at its sole cost and expense and by giving notice to the other party,shall appoint one qualified appraiser with at least five years of commercial appraisal experience in Ramsey and/or Hennepin County, Minnesota, to appraise and set the current market rent for the Option Term. Each appraiser so appointed shall acknowledge and agree in writing that he has received and shall abide by the provisions of this Section E. If a party does not appoint an appraiser within said 15-day period, the single appraiser appointed shall be the sole appraiser and shall set the current market rent for the Option Term. If two appraisers are appointed and are unable to agree on the current market rent within twenty-one(21)days after the second appraiser has been • appointed,the two appraisers shall attempt to jointly select a third appraiser meeting the qualifications stated herein and agreeing to abide by the provisions of this Section E within seven (7) days after the expiration of the 21-day period. If the two appraisers are unable to agree on a third appraiser within said seven (7) day period, either of the parties to this Lease, giving seven (7) days notice to the other party, may apply to any judge of the Ramsey County District Court for the selection of a third appraiser who meets the qualifications stated herein and agrees to abide by the terms of this Section E. Each of the parties shall pay one-half of the cost of appointing the third appraiser and paying the third appraiser's fee. Within twenty-one (21)days after the selection of the third appraiser, a majority of the appraisers shall set the current market rent for the Option Term. If the majority of the appraisers are unable to agree upon the current market rent within the stipulated 21-day period, the separate appraisals of each appraiser shall be added together and the sum shall be divided by three with the resulting quotient being the current market rent during the Option Term. In determining current market rent, each appraiser shall consider the then-prevailing rate for properties of equivalent quality, size, utility and location and considering the length of the Option Term. ARTICLE 4: LEASEHOLD IMPROVEMENTS A. Premises. All work performed on the Premises shall be subject to obtaining all necessary governmental approvals and permits. As to relates to "Landlord's Work" as hereinafter defined, the responsibility to obtain such approvals and permits shall be the Lan _ construction ms's con_ Tenant shall be responsible for obtaining all such approvals and permits relating to "Tenant's Work",as hereinafter defined. All such approvals and permits required under the Construction Contract shall be the responsibility of the contractor. (1) Construction Contract. Landlord shall enter into a construction contract for the construction of Tenant's Premises (the "Construction Work"). Such construction contract shall be with a contractor and in a form, substance and amount mutually acceptable to . Landlord and Tenant the "Construction Contract"). The Construction(!) Landless " Work shall be completed in a good and workmanlike manner using new materiais of good quality and in compliance with all applicable laws, statutes and ordinances, and all governmental rules, directives, regulations or requirements of governmental authorities affecting the Premises ("Applicable Laws"). R;91;miA2r-Y building plans fa; the R-amisas Landlord sprees to pay the actual cost of the Construction Work not to exceed$167.000. All costs and expenses of the Construction Work in excess of$167.000 shall be paid by Tenant. The Construction Contract shall provide that Tenant shall be the third party beneficiary thereof,and shall provide that all change orders, changes in the costs of construction and amendments to the Construction Contract shall be subject to the mutual approval of Landlord and Tenant. Landlord shall have no obligation or responsibility to Tenant for the failure of the contractor to perform the work as provided in the Construction Contract.including without limitation anv damages or claims resulting 326559.8 Redlined V8 to V7 9-27.96 5