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HomeMy WebLinkAboutCC RES 92-028 RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE THE LEASE AGREEMENT FOR 2800 KENZIE TERRACE N.E. Meeting Sheet IIIIII VIII VIII VIII VIII VIII IIII IIII 103565 Box: 26 Folder: RES 1992 Document: CC RES 92-028 RESOLUTION AUTHORIZING THE MAYOR AND CIN MANAGER TO EXECUTE THE LEASE AGREEMENT FOR 2800 KENZIE TERRACE N.E. a • CITY OF ST. ANTHONY RESOLUTION 92-028 A RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE THE LEASE AGREEMENT FOR 2800 KENZIE TERRACE N.E. WHEREAS, the City of St. Anthony desires to rent a space in the City-owned building located at 2800 Kenzie Terrace; and WHEREAS, Mr. Phil LaMere, d/b/a Barber Stylists desires to lease said space. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of St. Anthony hereby authorizes the Mayor and City Manager to execute the Lease Agreement for City- owned space located at 2800 Kenzie Terrace N.E. on behalf of the City. • Adopted this n� day of e- , 1992. Mayor ATTEST: City Clerk Reviewed for administration: City Nfanager • LEASE THIS AGREEMENT, made this a"� day of u no, by and between the CITY OF ST. ANTHONY, a municipal corporation under the laws of the State of Minnesota, (hereinafter called "Landlord") and PHIL LaMERE, d/b/a BARBER STYLISTS, a sole proprietorship, (hereinafter called "Tenant"), WITNESSETH: That the Landlord, in consideration of the rents and covenants hereinafter mentioned, does hereby Demise, Lease and Let unto the Tenant, and the Tenant does hereby hire and take from the Landlord the following described premises located in the County of Hennepin and the State of Minnesota, viz: That portion of the premises located at 2800 Kenzie Terrace consisting of approximately 605 square feet, in accordance with Exhibit A attached and made a part of. TO HAVE AND TO HOLD THE SAID PREMISES, without any liability or obligation on the part of said Landlord of making any alterations, improvements or repairs of any kind on or about the said premises save as provided herein, for the term of forty-eight (48) months commencing June 1, 1992, unless terminated at an earlier date as hereinafter provided, for the following purposes only to-wit: Offices for a barber shop and uses permitted under the zoning ordinances of the City of St. Anthony in the "C" General Commercial Business District, except those deemed by the Landlord to conflict with the municipal liquor operation. ARTICLE 1. RENT. Tenant will pay to Landlord at 3301 Silver Lake Road, St. Anthony, Minnesota 55418, or at such other address as may be designated by Landlord, without prior demand and without any deduction or set-off, annual rent in the amount of$3,540 payable in monthly installments of $295 each for the first Lease Year, and in subsequent Lease Years the amounts will be adjusted by the CPI Ratio, as defined in this Section. The annual rent for each Lease Year after the first Lease Year will be the annual rent for the preceding Lease Year multiplied by the CPI Ratio. In no event will the annual rent for any Lease Year be less than the annual rent for the preceding Lease Year. The annual rent for each Lease Year will be paid in equal monthly installments on the first day of each month. For purposes of this Lease, the term "CPI Ratio" means a fraction the numerator of which is the Consumer Price Index ("CPP') most recently published at commencement of the Lease Year in question and the denominator of which is thee most recently published CPI at commencement of the immediately preceding Lease Year. City of St. Anthony Lease Agreement for 2800 Kenzie Terrace Page 2 For purposes of this Lease, "Consumer Price Index" or"CPI" means the Consumer Price Index for All Urban Consumers, Minneapolis-St. Paul, Minnesota-Wisconsin, All items (1967 = 100), as promulgated by the Bureau of Labor Statistics of the United States Department of Labor. If a substantial change is made in the method of establishing the CPI,the CPI will be appropriately adjusted to a figure that would have resulted had no such change occurred. If the CPI is not available, a reliable governmental or other non-partisan publication establishing a comparable index selected by Landlord will be used. ARTICLE 2. POSSESSION: TERM: RENT. The term of this lease shall be forty-eight (48) months commencing on June 1, 1992 and terminating on May 31, 1996 unless terminated at an earlier date as hereinafter provided. Landlord shall have no responsibility or liability for loss or damage to fixtures, facilities or equipment installed or left on the premises, unless caused by the negligence of Landlord, its agents or employee. ARTICLE 3. UTILITIES AND SERVICES. Landlord agrees to furnish heat, water, sewer service, and electricity in reasonable amounts, trash pick up, and snow plowing, but Landlord shall not be liable for any loss or damage caused by or resulting from any variation, interruption or failure of such services due to any cause beyond its reasonable control; and no temporary interruption of failure of such services, incident to the making of repairs, alterations or improvements or due to accidents or strikes, or conditions or events not under Landlord's control shall be deemed as an eviction of the Tenant or relieve the Tenant from any of the Tenant's obligations hereunder. The Tenant shall pay One Hundred Dollars ($100.00) per month for all named utilities for the period of this lease. Landlord shall make available five (5) parking spaces immediately adjacent to building for Tenant's use. ARTICLE 4. NON-LIABILITY OF LANDLORD. Landlord shall not be liable to Tenant or those claiming through or under Tenant, or Tenant's agents, guests, invitees, clients or otherwise for any damage for failure to furnish services or utilities, the necessity for repairs or improvements to such services, fire, explosion, strikes, or any causes beyond Landlord's reasonable control; nor shall Landlord be liable for personal injuries, death, or any damage • from any cause about the leased premises or the building within same are located, including the parking area, and without limiting the generality of the foregoing, any City of St. Anthony Lease Agreement for 2800 Kenzie Terrace Page 3 personal injuries, death or damage resulting from the use or escape of gas, water, steam, electricity, air conditioning or other agency, or due to fire, explosion or action of the elements, unless caused by the negligence of Landlord, its agents or employees. Tenant agrees to place and maintain throughout the term hereof at its sole expense, such fire and other casualty insurance as its interests may appear in Tenant's reasonable discretion. Tenant further agrees to place and maintain throughout the term hereof, comprehensive general liability insurance covering the leased premises and providing insurance coverage with minimum amounts of liability for bodily injury to one person in the amount of Five Hundred Thousand Dollars ($500,000.00) and for bodily injury to any group of persons in the amount of Five Hundred Thousand Dollars ($500,000.00) and for property damage in the amount of One Hundred Thousand Dollars ($100,000.00). Landlord and Tenant each expressly waive any right of recovery against each other for any losses caused by or resulting from any acts of negligence or carelessness or alleged employees,to the extent that such losses might arise from fire or any other peril covered by any policy of insurance. • ARTICLE 5. CARE OF PREMISES. Tenant agrees: 1) to keep the leased premises in as good condition and repair as they were in at the time Tenant took possession of same; reasonable wear and tear and damage from the fire and other casualty, 'for which insurance is normally procured, excepted; 2) to keep the leased premises in a clean and sanitary condition; 3) not to commit any nuisance or waste on the leased premises, throw foreign substances in plumbing facilities, or waste any of the utilities furnished by Landlord; 4) if Tenant shall fail to keep and preserve these premises in the state of condition required by the provisions of this Article, the Landlord may, at its option, put or cause the same to be put into the condition and state of repair agreed upon, and in such case, the Tenant, on demand, shall pay the cost thereof; 5) Tenant agrees to deposit and maintain with Landlord a security deposit in the amount of Three Hundred Four Dollars ($304.00) to guarantee such Mpayment; City of St. Anthony Lease Agreement for 2800 Kenzie Terrace Page 4 6) Tenant agrees to abide by such Rules and Regulations as may be reasonably promulgated by Landlord. Tenant shall erect no signs on the leased premises without the prior written permission of the Landlord. Landlord shall be responsible for the maintenance and repair of structural members, walls, footings and the roof of the building of which the leased premises are a part, subject, however,to the provisions of Article 11. Tenant shall be responsible for all other maintenance, repair and replacement necessary for use of the leased premises; the Landlord shall be responsible for maintenance of the parking area, including snow plowing, and for an adequate level of security lighting. ARTICLE 6. UNLAWFUL USE. Tenant agrees not to commit or permit any act to be performed on the premises or any omission to occur which will be in violation of any statute, regulation or ordinance of any governmental body or which will increase the insurance rates on • the building which will be in violation of any insurance policy carried on the premises by the Landlord. The Tenant shall not disturb other occupants of the building by making any undue or unseemly noise or otherwise, and shall not do or permit to be done in or about the leased premises anything which will be dangerous to life, limb or property. ARTICLE 7. INSPECTION AND REPAIRS. The Landlord or its employees or agents shall have the right to enter the premises at all reasonable times, for the purpose of inspection, cleaning, repairing, altering or improving the same or said building, but nothing contained in this lease shall be construed so as to impose any obligation on the Landlord to make any repairs, alterations or improvements. ARTICLE 8. ALTERATIONS. Tenant will not make any alteration, additions or improvements in or to the leased premises or add, disturb or in any way change any plumbing or wiring therein without the prior written consent of the Landlord as to the character of the alterations, additions, or improvements to be made, the manner of doing the work, and the persons to do the work. In the event that such prior written consent is granted, Tenant agrees to make such alterations, additions or improvements at its • own sole expense, and warrants to Landlord that all such alterations, additions, or • City of St. Anthony Lease Agreement for 2800 Kenzie Terrace Page 5 improvements shall be in strict compliance with all relevant laws, ordinances, governmental regulations and insurance requirements. The Tenant shall be responsible for the purchase and installation of any additional air conditioning units, other than those already provided, the cost of changing the combination on the vault, the cost of purchasing and installing any new locks, any improvements to the landscaping of the building and the installation of carpeting and drapes, if desired. ARTICLE 9. COMMON AREAS. Tenant agrees that the use of all halls, passageways and toilet rooms in said building, by the Tenant or Tenant's servants, employees, guests and invitees, shall be subject to such rules and regulations as may from time to time be made by Landlord for the safety, comfort and convenience of the owners, occupants and tenants of said building; and Tenant agrees that no awnings or shades shall be used upon the leased premises except such as may be approved or furnished by • Landlord. Landlord agrees to provide parking for Tenant, its employees and invitees in common with other tenants, their employees and invitees. Landlord may, at its option, set aside a parking area to be used by Tenant and its employees, which area shall thereafter be used by Tenant and its employees to the exclusion of other areas. ARTICLE 10. ASSIGNMENT OR SUBLETTING. Tenant agrees to use and occupy the leased premises throughout the entire term hereof for the purpose or purposes herein specified, and for no other purposes, in the manner and to substantially the extent now intended, and not to assign this Lease or sublet said premises, or any part thereof, whether by voluntary act, operation of law, or otherwise, without obtaining the prior written consent of Landlord in each instance; Tenant shall seek such written consent by a written request therefor, setting forth such information as Landlord may desire. Landlord agrees not to withhold consent unreasonably. In the event that a bona fide sub- tenant or assignee is proposed to Landlord by Tenant, and Landlord cannot reasonably withhold consent to such proposed sub-tenancy or assignment, Landlord shall have the right, at Landlord's sole discretion, to terminate this lease upon thirty (30) days written notice to Tenant in lieu of consenting to such proposed sub-tenancy or assignment. Consent by Landlord to one assignment of this Lease or to one subletting of the leased premises shall not be a waiver of Landlord's rights under this Article as to any subsequent assignment or subletting. Landlord's rights to assign this Lease are and shall remain unqualified. City of St. Anthony Lease Agreement for 2800 Kenzie Terrace Page 6 ARTICLE 11. DAMAGE BY FIRE OR OTHER CASUALTY. If fire or other casualty shall render the leased premises untenantable, this Lease shall terminate forthwith, and any prepayments of rent shall be refunded by the Landlord pro-rate; provided, however, that if the premises can be repaired within ninety (90) days from the date of such event, then at Landlord's option by notice in writing to Tenant mailed within thirty (30) days after such damage or destruction, this Lease shall remain in full force and effect, but the rent for the period during which the premises are untenantable shall be discounted pro-rata. ARTICLE 12. EMINENT DOMAIN. If such a portion of the leased premises are taken by any public authority under the power of eminent domain as to render the remaining portion unsuitable for the purposes intended hereunder, then the term of this Lease shall cease as of the day possession shall be taken by such public authority, and Landlord shall make a pro-rata refund of any rent that may have been paid in advance. All damages • awarded for such taking under the power of eminent domain shall belong to and be the property of Landlord, irrespective of the basis upon which they are awarded. ARTICLE 13. SURRENDER. On the last day of the term of this Lease or on the sooner termination thereof, Tenant shall peaceably surrender the leased premises in good condition and repair consistent with Tenant's duty to make repairs as provided in Article 5 hereof. On or before the last day of the term of the lease or the sooner termination thereof, Tenant shall at its expense remove all of its equipment from the leased premises, and any property not removed shall be deemed abandoned. Tenant shall reimburse Landlord for any expenses incurred by Landlord with respect to removal or storage of abandoned property. All alterations, additions and fixtures, other than Tenant's equipment, which have been made or installed by either Landlord or Tenant upon the leased premises shall remain as Landlord's property and shall be surrendered with the leased premises as a part thereof. If the leased premises be not surrendered at the end of the term or sooner termination thereof, Tenant shall indemnify Landlord against loss or liability resulting from delay by Tenant in so surrendering the premises, including, without litigation, claims made by any succeeding tenant founded on such delay, and attorneys fees. Tenant shall promptly surrender all keys for the leased premises to Landlord at the place then fixed for payment of rent and shall inform Landlord of combinations on any locks and safes on the leased premises. • City of St. Anthony Lease Agreement for 2800 Kenzie Terrace Page 7 ARTICLE 14. NON-PAYMENT OF RENT: DEFAULTS. If any one or more of the following occurs, (1) a rent payment from Tenant to Landlord shall be and remain unpaid in whole or in part for more than fifteen (15) days after notice from the Landlord; (2) Tenant shall violate or default any of the other covenants, agreement, stipulations, or conditions herein, and such violation or default shall continue for a period of ten (10) days after written notice from Landlord of such violation or default; or (3) if Tenant shall be adjudged bankrupt or file a petition in bankruptcy or otherwise indicates insolvency or becomes insolvent; then it shall be optional for Landlord to declare this Lease forfeited and the said term ended, and to re-enter said premises, with or without process of law, using such force as may be necessary to remove all persons or chattels therefrom, and Landlord shall not be liable for damage by reason of such re-entry or forfeiture; but notwithstanding re-entry by Landlord or forfeiture or termination of this Lease, the liability of Tenant for the rent provided for herein shall not be relinquished or extinguished for the balance of the term of this Lease. Tenant will pay, in addition to the rentals and other sums agreed to be paid hereunder, such • additional sums as the court may adjudicate reasonable as attorney's fees in any suit or action instituted by Landlord to enforce the provisions of this Lease, or the collection of the rentals due Landlord hereunder. ARTICLE 15. HOLDING OVER. In the event Tenant remains in possession of the premises herein leased after the expiration of this Lease and without the execution of a new lease, it shall be deemed to be occupying said premises as a tenant from month t month, subject to all the conditions, provisions, and obligations of this lease insofar as the same can be applicable to a month-to-month tenancy. ARTICLE 16. COVENANTS TO HOLD HARMLESS. Except in the case of negligence of Landlord, its agents or employees, Tenant agrees to hold Landlord harmless for any liability for damages to any person or property in or about the leased premises. All property kept, stored, or maintained in the leased premises shall be so kept, stored, or maintained at the sole risk of Tenant. Tenant agrees to pay all sums of money in respect of any labor, services, materials, supplies or equipment furnished or alleged to have been furnished to Tenant in or about the leased premises which may be secured by any mechanic's, materialmen's or other lien against the leased premises or the Landlord's interest therein and will cause each such lien to be discharged at the time performance of any obligation secured thereby matures, provided that Tenant may, upon City of St. Anthony Lease Agreement for 2800 Kenzie Terrace Page 8 depositing and maintaining with Landlord a sum reasonably satisfactory to Landlord to protect Landlord's interest in the leased premises from such lien, contest such lien, but if such lien is reduced to final judgement or process thereon is not stayed, or if stayed and said stay expires, then and each such event Tenant shall forthwith pay and discharge said judgement. Landlord shall have the right to post and maintain on the leased premises, notices of non-responsibility under the laws of Minnesota. ARTICLE 17. SUBORDINATION. Tenant agrees that this Lease shall be subordinate to any mortgages or trust deeds now on or hereafter placed upon said premises and to any and all advances to be made thereunder, and to the interest thereon, and all renewals, replacements, and extensions thereof. ARTICLE 18. GENERAL. This Lease does not create the relationship of principal and agent or of partnership or of joint venture or of any association between Landlord and Tenant, the sole relationship between Landlord and Tenant being that of landlord and tenant. No waiver of any default of Tenant hereunder shall be implied from any omission by Landlord to take any action on account of such default if such default persists or is repeated, and no express waiver shall affect any default other than the default specified in the express waiver and that only for the time and to the extent therein stated. Each term and each provision of this Lease performable by Tenant shall be construed to be both a covenant and a condition. All preliminary negotiations are merged into and incorporated in this Lease. This Lease can only be modified or amended by an Agreement in writing, signed by the parties hereto. All provisions hereof shall be binding upon the heirs, successors and assigns of each party hereto. Any notice required to be served in writing hereunder shall be mailed to the parties at the addresses set out after their respective signatures. Any and all indebtedness owing by the Tenant to the Landlord pursuant to the terms of this Lease which remains unpaid for a period of thirty (30) days after it first becomes due and payable shall bear interest from and after the lapse of such thirty (30) day period at the rate of eight percent (8%) per annum. This Lease shall not be effective until executed by all parties hereto. City of St. Anthony Lease Agreement for 2800 Kenzie Terrace Page 9 ARTICLE 19. TERMINATION. Tenant agrees that, in addition to the right of termination related to termination of the Parkview lease as set forth in the preceding paragraph, Landlord shall have the right to terminate this lease at any time upon 30 days prior written notice to Tenant. In the event Landlord exercises its right to terminate this lease pursuant to this paragraph, Landlord will pay to Tenant a termination fee based upon the unamortized cost of certain improvements installed in the leased premises by Tenant. If the termination occurs in the second 12 month period, the termination fee shall be $1,500. If the termination occurs in the third 12 month period, the termination fee shall be $1,000. If the termination occurs in the fourth 12 month period, the termination fee shall be $500. If this lease is terminated by Landlord any time after the fourth anniversary of the date of this lease, no termination fee will be paid to Tenant. ARTICLE 20. OTHER PROVISIONS. Attached is Exhibit A hereto and made a part hereof are Supplemental provisions to this Lease relating to the following top or topics: Diagram of leased space. IN WITNESS WHEREOF, the parties hereto have executed this Lease the day and year first above written. For: CITY OF ST. ANTHONY Date Its Mayor (11 C1a Date Its C' Manager For: PHIL LaMERE d/b/a BARBER STYLISTS Date Its