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HomeMy WebLinkAboutRES 81-026 RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE THE LEASE WITH I.S.D. #282 FOR SPACE IN THE PARKVIEW BUILDING Meeting Sheet IIIIIIVIIIVIIIVIIIVIIIVIIIIIIIIIII � 102675 Box: 23 Folder: RES 1981 Document: RES 81-026 RESOLUTION AUTHORIZING THE MAYOR AND CIN MANAGER TO EXECUTE THE LEASE WITH I.S.D. #282 FOR SPACE IN THE PARKVIEW BUILDING RESOLUTION 81-026 A RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE THE LEASE WITH I.S.D. #282 FOR SPACE IN THE PARKVIEW BUILDING BE IT RESOLVED that the Mayor and City Manager are authorized to execute the Lease with I.S.D. #282 for space in the Parkview Building on behalf of the City of St. Anthony. Adopted this /[,/ day of. Aari'l , 1981 . Mayor ATTEST: Reviewed for administration: '- C y Manager J�„ LEASE (PARKVIEW SCHOOL) THIS INDENTURE OF LEASE , made and entered into as of �-�-y �, 1981 , by and between' INDEPENDENT SCHOOL DISTRICCTT NO. 282 , a Minnesota public school corporation ( " the District" ) and the CITY OF ST. ANTHONY, a Minnesota municipal corporation ( "the City" ) . The District and the City , in consideration of the rents , covenants , and considerations hereinafter specified , do hereby agree with each other as follows : 1. Leased Premises. The District grants , and the City accepts , a lease of the following premises located in the City of St . Anthony, County of Hennepin , State of Minnesota: Those areas ( approximately 6 ,000 square feet) outlined in red .on Exhibit A attached hereto ( "Leased Premises" ) of the Parkview School Building ( "Building" ) located at 3301 Silver Lake Road , and being part of the real estate located in the City of St . Anthony, County of Hennepin, State of Minnesota legally described- as follows : The West Half of the South Half of the West Half of the Southwest Quarter of the Northeast Quarter ; The West 270 feet of the South 120 feet of the North Half of the West Half of the Southwest Quarter of the Northeast Quarter ; All in Section 6 , Township 29 , Range 23 , according to the United States Government Survey thereof; ( collectively, the "Total Premises" ) . In addition to the Leased Premises , the City and its officials , employees , agents and invitees. shall have the nonexclusive use of all parking areas , sidewalks , stairways , hallways , lavatories , custodial space and other . common areas and facilities on the Total Premises ( "Common Areas" ) in common with the District and its officials, employees , agents and invitees. 2 . Quiet Enjoyment . The District represents and warrants that it is the fee owner of the Total Premises , that it is solely entitled to all rents payable under the terms of this Lease., that it has the right .and authority to make this Lease , and that the City shall have the complete and .exclusive possession and quiet enjoyment of . the Leased Premises , together with the nonexclusive use of the Common Areas , during the full term of this Lease except as hereinafter specifically provided . 3 . Term. The initial term of this Lease shall be five ( 5 ) years , commencing September 1 , 1981, and terminating August 31 , 1986 . 4 . Extension . The City shall have an option to extend the term of this Lease for an additional five ( 5) years . Such option must be exercised in writing prior to August 31 , 1985 . 5 . Rent - Initial Term. The City shall pay rent of Thirty-six Thousand Dollars ( $ 36,000. 00 ) annually during the initial five-year term of this Lease. Such rent shall be paid quarterly and in advance in equal installments of Nine Thousand Dollars ($ 9 ,000 .00 ) . '40 6 . Rent - Extended Term. If the City shall exercise itsoptionto extend this Lease for an additional term of five ( 5 ) years , the parties shall meet as soon as possible thereafter to negotiate in good faith to determine the rent for. said period . If the parties are unable to agree on the amount of the rent for the extended -2- term prior to May 31 , 1986 , the City, at its option, may: ( a) terminate this Lease effective August 31 , 1986 , or ( b) pay rent for the extended term in accordance with Exhibit B attached hereto and made a part hereof. 7 . Real Estate Taxes and Assessments. All real estate taxes , assessments , and other governmental levies and charges , general and special , ordinary and extraordinary, foreseen or unforeseen , of any kind , which are assessed or imposed upon the Total Premises or any part thereof, or. which become payable during the term of this Lease , shall be the financial responsibility of the District and the District shall pay the same when due . 8 . Utilities and Other Charges. During . the term of. this Lease , the District shall pay for. all heat, gas , oil , water , electricity, trashcollection and sewer charges and any other service or utility which is presently provided for the Total Premises , including those for the Leased Premises , except as hereinafter specifically provided . 9 . Maintenance . The District shall maintain the Leased Premises in a safe , clean and habitable condition. The District shall pay the expense of all capital . improvements to the Building , except alterations to the Leased Premises done by the City, and all expenses of operating and maintaining in sound order the physical plant of the Building , including , but not limited to , all - boilers , furnaces , hot water heaters , plumbing and fixtures , - sewer lines and fixtures , smokestacks , chimneys , mechanical systems , and all electrical , heating , ventilating , and metering , equipment and facilities, and the like . -3- The District shall keep the footings , foundations , structural members, interior and exterior walls , floors , roof , parking lot and sidewalks in good repair , and if necessary, make modifications or replacements thereof , except that the District shall not be required to make any such repairs, modifications or replacements which become necessary or desirable by reason of negligence or willful acts of the City, its agents, servants or employees. The District shall not be required to maintain or replace floor coverings, wall coverings or ceiling tile in the Leased Premises unless damage is caused to them by reason .of the District's failure to maintain those items it is required to maintain or by • reason of the District' s negligence or -willful acts. The District shall maintain the Building and Total Premises in accordance with all applicable laws , ordinances and regulations of any governmental authority having jurisdiction over the Total Premises. The Citv shall , however , be responsible for any and all costs resulting from changes or .modifications to the Building or any equipment , facilities or fixtures contained within it which are required by any such governmental authority which result primarily -from the City' s use of the Leased Premises . 10 . Janitorial Service . The City shall .be responsible for providing ordinary custodial and • janitorial services for the Leased Premises. The District shall be responsible for providing ordinary custodial and janitorial services for. all of the Building except for the Leased Premises . -4- • 11 . Snow Removal . The City shall be responsible for removing snow from all parking and road areas.. and- all- sidewalks on the Total Premises except that portion of the public sidewalk .l-ocated on the south (33rd Avenue Northeast) side of the Building and adjacent- to the roadway. 12 . Outside Maintenance . The City shall be responsible for lawn and shrubbery care and ,maintenance , including watering , cutting and trimming , for the Total Premises . 13 . Alterations and Improvements. The City shall have the right to make such alterations and improvements to the Leased Premises as it deems desirable • and necessary for its purposes; provided , however , that except for the curing of defaults under Section 24 of this lease the City .must first secure the permission of the District in writing before making any alteration or improvements which involve or affect the structure of the Leased Premises, including structural members and exterior walls , floors or roof , or any improvements or alterations which do not affect the structure of the Leased Premises but which involve a material cost in excess of $1 ,000 , which permission shall not be unreasonably withheld . The City shall be allowed , but shall not be- required , to remove any alterations or improvements made by the City upon the expiration of this Lease if removal can be effected without injury to the Building or if the City repairs , at its sole expense and to the reasonable satisfaction of the District,' any damage which results from removal . _5 _ • 14 . City' s Liability Insurance. The City shall at all times during the term of this Lease procure and maintain at its expense , but for the mutual benefit of the District and the City, general public liability insurance covering the Leased Premises. The insurance policy shall cover claims for personal injuries , wrongful death and property damage occurring in the Leased Premises. Such insurance is to afford protection to a limit of not less than $100 ,000 in respect to injuries or death to a single person , to a limit of not less than $300 , 000 in respect to any one accident , and to a limit of not less than $300 ,000 in respect to property damage. The City shall increase the policy limits to comply with any increase- in the • statutory liability provided in Minnesota Statutes , Section 466 . 04 . 15 . District' s Liability Insurance. The District shall at all times during the term of this Lease procure and maintain at the District' s expense , but for the mutual benefit of the District and- the City, general' public liability insurance and boiler insurance. covering the Total Premises except for the Leased Premises. These insurance policies shall cover claims for personal injuries , wrongful death and property d amage 'occurring in or from the Total Premises including the Common Areas. . Such insurance is to afford protection to a limit of not less than $100 ,000 in respect to injuries or death to a • single person, to a limit of not less than $300 ,000 in respect to any one accident , and to a limit of not less than $300,000 in respect to property damage. The District shall increase .the policy limits to comply with any increase in the statutory liability provided in Minnesota Statutes , Section 466 . 04 . 16 . Proof of Insurance. Memorandum copies of all insurance policies procured by each party shall be delivered to the other together with satisfactory evidence of* payment of premiums thereon. All renewal policies to be procured by each party together with satisfactory evidence of payment of premiums thereon shall be delivered to the other at least ten (10 ) days before .the expiration date of the policy then in force . 17 . Fire and Casualty Insurance. The District shall at all times during the term of this Lease procure and maintain at the District' s expense fire insurance with an extended coverage endorsement ,. insuring the Building , including the Leased Premises , to the full extent of the insurable value thereof. 18 . Fire and Casualty Loss . If the Leased Premises or Common Areas or any part thereof are damaged or destroyed by: a. fire , or b. any casualty covered by- the extended coverage endorsement described in Paragraph 19 , or c . the willful or .negligent conduct of the District, then the District shall repair the premises as promptly as possible , unless the City agrees in writing to terminate this Lease and to be relocated to another temporary or • permanent location at the City' s expense. If such repair could not be completed within thirty ( 30 ) days , the City may give notice of its intent to terminate this Lease , in which event the Lease shall be terminated as of the date of such loss. -Unless the City agrees to terminate this Lease, the District shall in good faith proceed with and consummate the settlement of the District' s insurance claim, if any, and thereafter promptly commence and diligently pursue any repairs required , subject to any statutorily required approval of the state board of education and any other governing body. Pending repair or restoration , rent shall abate following such damage or destruction in proportion to the interference with the City' s use of the Leased Premises.- If the Leased Premises shall be so slightly injured by any cause aforesaid so that no part thereof is rendered unfit for occupancy , then the District shall repair the same with reasonable promptness , and in that case the rent shall not be abated during such repair period . Except as to damage or destruction caused by the District' s willful conduct ,. the District shall not be required ' to repair or replace improvements or betterments placed by the City on the Leased Premises . Notwithstanding anything to the contrary herein , if the damage or destruction, described in this paragraph , occurs within thirty ( 30 ) months of the end of the term of this Lease and the City does not forthwith exercise any renewal options which it may have, so that the remaining . term is extended longer than the number of months set forth above, or if more than twenty percent ( 20% ) of the area of the Building is substantially damaged or destroyed by fire or other casualty, this Lease may be • terminated by either party by written notice to the other . In the event of termination, all advance rent paid to the District which has not accrued prior to termination shall be refunded to the City. -8- • 19 . Waiver of Claim for Insured Loss. The parties hereto do each hereby waive all claims and right of recovery based on negligence or breach of the covenants hereof against the other for loss -occurring to the Building or the Leased Premises and the improvements , betterments , equipment, fixtures and property owned or installed by the City therein , .which loss is covered by any fire and extended coverage or similar insurance policy. This waiver is limited to the amounts actually received under the insurance policies . 20 . District' s Use of the Leased Premises. The District reserves the right to use the City Council Chambers in the Leased Premises for educational purposes two ( 2 ) evenings per month -on a regular basis , providing that the City is provided with at least three ( 3 ) days written advance notice of such use and provided that such use does not unduly conflict with use of the Council- Chambers by the City. 21 . Assignment . The City shall not assign or in any manner transfer this Lease ' or any interest therein, nor sublet the Leased Premises or any part or parts thereof, nor permit the occupancy by anyone through or under it , without the prior written consent of the District. Notwithstanding the foregoing , the City shall have the right .to permit use of the. Leased Premises by community service , public service , or civic , groups , with • or without payment to the City. Any such payments to the City shall be the property of the City . 22 . Termination and Default. The District may terminate this Lease ( a) if the City shall fail to pay any fixed rent required hereunder on or before the date that -9- payment is due and such default continues for ten (10 ) days after written notice by the District or ( b) if the City shall fail to observe and perform any other covenant , condition or agreement on its. part under this Lease for a period of thirty ( 30 ) days after written notice , specifying such default and requesting that it be remedied , unless -the District shall agree in writing to an extension of such time prior to its expiration, or for such longer period of time as may be reasonably necessary to remedy such default, provided that the City is proceeding with reasonable diligence to remedy the same . The City may terminate this Lease at any time upon at' least twenty-one ( 21 ) months prior written notice to the District . Should the District be in 'default under the terms of this Lease , the District shall have a reasonable and adequate time in which to •cure the same after written notice to the District , by the City. If the District fails to cure such default within a reasonable and adequate time , or fails to commence action and proceed with reasonable diligence to remedy the default within thirty (30 ) days after such notice , the City may remedy the default itself but only to the minimum .extent necessary to cure the default and - set off the cost thereof against the rent due hereunder . Such right of setoff shall not deprive the City of the right to demand and obtain immediate reimbursement of such cost in full from the District . 23 . Notice . Whenver under this Lease a provision is made for notice of any kind , such notice shall be in writing and signed by or on behalf of the -10- party giving or making the same , and it shall be deemed sufficient notice and service thereof if such notice is to the City and sent by registered or certified mail postage prepaid to : City Manager City of St. Anthony 3301 Northeast Silver Lake Road St. Anthony, Minnesota 55418 and if to the District sent by registered or certified mail , postage prepaid to: Superintendent Independent School District No. 282 3303 33rd Avenue N. E. St. Anthony, Minnesota 55418 or to the place then fixed for the payment of rent. 24 . Rights and Remedies. Nothing contained • herein shall be deemed or construed by the parties hereto , nor by any third party, as creating the relationship of principal -and agent or of partnership or of joint venture between the parties herein. The various rights and remedies herein contained and reserved to each of the parties, hereto shall not be considered as exclusive of any other right or remedy of such party, but shall be construed as cumulative and shall be, in addition to every other remedy now or hereafter existing at law, in equity, or by statute. No delay or omission of the right to exercise any power by either party shall impair any such right or power , or shall be construed as a. waiver of any default or as acquiescence therein. One .or more waivers of any covenant , term or condition of this Lease by either party shall not be construed by the other party as a waiver of a subsequent breach of the same covenant , term or condition. The consent or approval by either party or of any act by the -11- other party of a nature requiring consent or approval shall not be deemed to waiver or render unnecessary consent to or approval of any subsequent similar act . Whenever a period of time is herein provided for either party to do or perform any act or thing , .such party shall not be liable or responsible for any delays due to strikes , riots , acts of God , shortages oflabor or materials, national emergency, acts of a public enemy, governmental restrictions , laws or regulations , or any other cause or causes , whether similar or dissimilar to those enumerated beyond its reasonable control . 25 . Use of City Employees. The District may hire employees of the City for the purpose of effecting • repair or making improvements to the Leased Premises or in order to carry out 'any of its obligations .under this Lease to the extent the same does not unreasonably interfere with their regular duties for the City. In the event it chooses to use the City' s employees for such purpose , the District shall pay to the City a fee at the rate of 120% of the base hourly wage of such employees . 26 . Relocation -of Fire Department. The parties agree to meet at the City' s request to discuss in good faith the amendment of this Lease to provide for the relocation to the Building of the City' s Fire Department -12.- and the terms and conditions of such an amendment, should the City determine that it will undertake such a relocation. INDEPENDENT SCHOOL DISTRICT NO. 282 By / ' It Cha.irma rY By Its Clerk CITY OF ST. ANTHONY By o Sally aik , Mayor B y Q -_ es W. Fornell , Manager STATE OF MINNESOTA ) ,) SS COUNTY OF This Lease was acknowledged before me this C d a y of 1981 , by and j7 ;—respectively the Chairman and Clerk of INDEPENDENT SCHOOL DISTRICT NO. 282 , a Minnesota public school corporation , on behalf of said corporation. NotaryVPublic � P4AA J�AAAAAAAA.�p,ApptulTl MARGARET K. GUNDERSOy 7 , NOTARY PUBLIC-MINNESOTA HENNEPIN COUNTY STATE OF MINNESOTA ) PA,y Commission Expires Apr. 5, 1984 X r ) SS COUNTY OF ) This Lease was acknowledged before me this day of , . 1981 , by Sally Haik and James W. Fornell , r ectively the Mayor and Manager of the CITY OF ST. ANTHON a Minnesota municipal corporation , on behalf of said corporation . r -i: CAROLIi; L ZAPPA 1 L NeNINIMOCOUNTr Notary Public Mt NOTARY PIMLIGMINNE30TA my COMMISSION HMAR. O. 190.± .+ -13- i EXHIBIT A N 1011, Lam' The portion of the Parkview School Site which is subject to the attached lease is indicated by crosshatching. EXHIBIT B If Independent School District No. 282 and the City of St . Anthony are unable to agree within the specified time on the amount of the rent for the extended term under paragraph 6 of the Lease to which this Exhibit B is attached , and if the City does not exercise its option to terminate the Lease , the rent for the extended term shall be determined as follows : The annual rent shall- be determined in accordance with this Exhibit B for the entire additional term of five ( 5 ) years , . and the City shall pay rent equal to the Annual Fair Rental Value of the Leased Premises ( as hereinafter defined) . Such rent shall be paid quarterly and in advance in equal installments of one fourth (1/4-th) of the Annual Fair Rental . The term Annual Fair Rental Value shall mean the amount of cash that a lessor could receive annually by renting the Leased Premises considering the condition of the Leased Premises at that time ( exclusive of any improvements made at the expense of the City) , assuming the lessor to be a prudent party willing to lease but under no compulsion to do so , assuming the tenant to be a prudent party willing to lease but under no compulsion to do so, and assuming a lease containing the terms and conditions contained in the Lease to which this Exhibit is attached . To determine Annual Fair Rental Value , either party shall have the right to appoint an appraiser and give written notice thereof to the other party. Within .ten (10 ) days after the receipt of such notice , the recipient shall appoint a second appraiser and give written notice of such appointment to the other party. Within ten ( 10 ) days after the . appointment of the second appraiser , the- two appraisers shall appoint a -third appraiser . , Within' thirty ( 30 ) days after the appointment of the third appraiser , the appraisers shall execute in duplicate a' report- stating the Annual Fair Rental Value of the Leased Premises. The report of, the three appraisers shall be conclusive upon the District and the City. If the three appraisers cannot agree , the report of the majority shall be conclusive. If the second appraiser is not appointed within the time herein allowed and notice thereof given , the report of the first appraiser shall be conclusive upon the parties hereto . If the third appraiser is not appointed within the time herein allowed , either party hereto may apply to the senior judge .of the Hennepin County District Court ( if .such court does not then exist , then of an • .r existing court of comparable jurisdiction) , and such judge shall appoint .the third appraiser within thirty (30 )- days after application is made . If the appraisers are unable to formulate a majority report within the time herein specified, .either party may make application to the court. for a determination of the Annual Fair Rental Value, and the District and the City waive all rights to a trial by jury. Aftertaking such evidence as he deems necessary and proper , the judge shall issue his order and the order shall be conclusive - upon the parties . A Any appraiser appointed shall be a member of the American Institute of Real Estate Appraisers , or a similar professional society. Every appraiser appointed shall sign an affidavit to honestly, justly, and impartially perform the appraisal duties .