CC WORKSESSION 03041997 - Laserfiche WebLink

Home Browse Search

i LEASE REVIEW 1. LANDLORD: Ste. Marie Company 2. TENANT: Ronald Rasmussen and Judith V. Rasmussen dba Tires Plus 3. DATE OF LEASE AND ANY AMENDMENTS: Lease dated July 15, 1996, as amended by Amendment #1 dated September 30, 1996. 4. TERM OF LEASE: August 1, 1996 - July 31, 2011 (Sections 4 and 6 of data sheet) 5. RENT (Section 2 of Amendment #1 and Section 6 of Lease): Rent is as follows: Period Annual Rent Monthly Rent $ /PSF 8 -1 -96 through 7 -31 -97 $62,595.50 $5,216.29 $ 9.50 8 -1 -97 through 7 -31 -02 69,184.50 5,765.38 10.50 8 -1 -02 through 7 -31 -07 75,773.50 6,314.46 11.50 8 -1 -07 through 7 -31 -11 82,362.50 6,863.54 12.50 For the first option period, the annual minimum rent shall be the then current market rent for similar commercial property in the Minneapolis /St. Paul metropolitan area; provided, however, such minimum annual rent shall not be less than the annual minimum rent for the prior period or greater than 10% over the annual minimum rent for the prior period. For the second option period, the annual minimum rent shall be the then current market rent for similar commercial property in the Minneapolis /St. Paul metropolitan area; provided, however, such annual minimum rent shall not be less than the annual minimum rent during the first option period or greater than 10% over the annual minimum rent for the first option period. Tenant also pays percentage rent for each lease year equal to the amount, if any, by which 3% of the gross sales exceeds the threshold amount of $57,851.42. Percentage rent is paid quarterly within 15 days after the expiration of each three -month calendar period. Landlord has the right upon 10 days prior notice to Tenant to make a special audit of Tenant's book and records pertaining to gross sales. If the audit discloses a discrepancy greater than 2% of gross sales, Tenant is required to pay the cost of the audit. If the discrepancy is more than 3% of gross sales, or if Tenant fails to permit the inspection or audit of its records, then Landlord has the right to terminate the Lease. Landlord has the right to audit Tenant's books and records for a period of three years after the close of each lease year.