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HomeMy WebLinkAbout5E - Lease Agreement with Shepherd of the Lake Church o"i PRI04> co~ 4646 Dakota Street S.E. o ~ Prior Lake, MN 55372-1714 I't1 I\rlNNESO~~ CITY COUNCIL AGENDA REPORT MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: ISSUES: FINANCIAL IMPACT: APRIL 5,2010 5E JANE KANSIER, BUILDING AND TRANSPORTATION SERVICES DIRECTOR CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO RENEW A LEASE AGREEMENT WITH SHEPHERD OF THE LAKE CHURCH FOR THE USE OF A PORTION OF THE SAFE HAVEN PARKING LOT AS THE LAKER L1NESIBLUEPRESS PARK & RIDE. Introduction The purpose of this item is to review the lease agreement with Shepherd of the Lake Church for the use of the Safe Haven parking lot as a park and ride location. The staff recommends approval of the lease renewal. Historv In 2006, the City entered into a lease agreement with Shepherd of the Lake Church to use 110 stalls in the church's parking lot for the Laker Lines Park and Ride. This lot was in use until construction of the YMCA began in 2008. Once construction began, the park and ride was relocated across the street to the Safe Haven for Youth parking lot. There are approximately 90 stalls available in this lot. The original lease had a two-year term with an automatic two-year renewal. This effectively ended the lease in April, 2010. Current Circumstances The new lease is nearly identical to the original lease. The only changes include an opt-out provision that allows either party to terminate the lease with a 90-day notice. We have also added language that verifies the City will be responsible for any repairs to the lot specifically caused by the buses. The annual cost for the lease is $3,750.00. This sum is paid in full in April of each year. Conclusion Staff has worked closely with Kermit Mahlum of Shepherd of the Lake Church to renew the lease. The Shepherd of the Lake Board has approved the Lease Agreement that we now submit to the Council for consideration. A copy of the proposed Agreement is attached. There are no issues with this item. The lease allows the City to continue use of the church's property for a Park and Ride lot for the next two years. In 2012, the Eagle Creek Transit Station is expected to be open and ready for use. We expect this site will replace the Safe Haven lot at that time. The cost to lease the Park and Ride portion of the lot is the same amount we have paid for the lease since 2008. The City will have some additional on-going www.cityofpriorlake.com Phone95Z.447.98QQ:/Fax 952.447.4245 costs in the form of sweeping, snowplowing and refuse clean-up at the site. Overall, the costs are minimal and will be dedicated from the Transit budget. ALTERNATIVES: The Council has two alternatives: (1) Adopt the attached resolution authorizing the Mayor and City Manager to enter into a Lease Agreement with Shepherd of the Lake Church for the lease of a portion the Safe Haven parking lot to be utilized as the Laker Lines/BlueXpress Park and Ride facility. (2) Take no action and direct the staff accordingly. RECOMMENDED A motion and second to adopt the attached resolution authorizing the Mayor and MOTION: City Manager to enter into a Lease Agreement with Shepherd of the Lake Church for the lease of a portion the Safe Haven parking lot to be utilized as the Laker Lines/BlueXpress Park and Ride facility. itybr V 2 o~ PR104> co~ 4646 Dakota Street S.E. U ~ Prior Lake, MN 55372-1714 I't1 I\rlNNESO~~ RESOLUTION 10-xxx A RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO RENEW A LEASE AGREEMENT WITH SHEPHERD OF THE LAKE CHURCH FOR THE USE OF A PORTION OF THE SAFE HAVEN PARKING LOT AS THE LAKER LINES PARK & RIDE Motion By: Second By: WHEREAS The City Council recognizes the value of providing quality, cost-effective transit services for the Prior Lake community; and WHEREAS, The City's 2030 Vision and Strategic Plan identifies addressing transit needs as a goal in providing a better quality community; and WHEREAS, The City has negotiated with Shepherd of the Lake Church in good faith the terms and conditions for the lease of a portion of the property they own at 13780 McKenna Road NW (Safe Haven for Youth); and WHEREAS, The property owners have indicated acceptance of the terms of the lease by executing a lease agreement; and WHEREAS, The Council believes the terms and conditions are appropriate. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The Mayor and City Manager are hereby authorized to enter in to the renewed lease agreement with Shepherd of the Lake Church for use of a portion of the parking lot on the property they own at 13780 McKenna Road NW (Safe Haven for Youth) as the Laker Lines/BlueXpress park and ride. 3. Funding for the lease payment shall come from the Transit Fund Account #603-49804-418. PASSED AND ADOPTED THIS 5TH DAY OF APRIL, 2010. YES NO I Myser I Erickson I Hedberg I Keeney I Millar Myser Erickson Hedberg Keeney Millar Frank Boyles, City Manager VfYJV:J. cityofprio~lake ',corn Phone 952.447.9800 / Fax 952.447.4245 Laker Lines/BfueXpress Parking Lot Lease April 1, 2010 Modified standard lease agreement City of Prior Lake, Minnesota LEASE AGREEMENT THIS LEASE AGREEMENT is made and entered into this 5th day of April, 2010, by and between the CITY OF PRIOR LAKE, MINNESOTA, a Minnesota municipal corporation (hereinafter referred to as "CITYII, and SHEPHERD OF THE LAKE LUTHERAN CHURCH, a Minnesota corporation (hereinafter referred to as the "CHURCHII). In consideration of the mutual covenants and promises hereinafter set forth, the sufficiency of which are not disputed, the CITY and CHURCH do hereby agree as follows: 1. DESCRIPTION OF THE PREMISES. CHURCH does hereby lease to CITY and CITY does hereby lease and take from CHURCH a portion of certain premises consisting of 90 parking spaces at the westerly most portion of the existing Safe Haven for Youth parking lot located at 13780 McKenna Road, Prior Lake, MN, Prior Lake, Minnesota 55372 (the specific location of the premises is as outlined and delineated on the attached Exhibit "A") (hereinafter referred to as "Leased Premises"). 2. TERM. This Lease Agreement shall be for a term of two (2) years commencing on the 1 st day of April, 2010, and terminating on the 31st day of March, 2012. The CITY or CHURCH may terminate this Agreement upon 90-day prior written notice. 3. USE OF PREMISES. The Leased Premises shall be used by CITY solely for Laker LineslBlueXpress commuter parking purposes during the hours of 5am to 8pm, Monday through Friday, and for no other purpose, and such use and occupancy shall be in compliance with all applicable federal, state and local laws, statutes, ordinances and governmental rules and regulations. 4. CITY RESPONSIBILITIES FOR IMPROVEMENTS TO LEASED PREMISES. CITY may improve, at its sole cost and expense, the Lease Premises with signage and striping, subject to the approval of the design and location(s) by the CHURCH, 5. RESPONSIBILITY OF CHURCH REGARDING LEASED PREMISES. The CHURCH shall be responsible for making any normal repairs and maintenance to the Leased Premises consistent with the repairs made to the remainder of its parking facility. (See Paragraph 8), The CHURCH shall pay any and all insurance which CHURCH desires to insure its own property which is located and situated on the Leased Premises, The CHURCH shall be responsible for applicable taxes. 5. RENT AND SECURITY DEPOSIT. CITY shall pay to CHURCH annual rent in the amount of Three Thousand Seven Hundred Fifty and no/100 Dollars ($3,760.00) for the term of this Lease Agreement. Rent payments shall be made annually on April 1st. All rents required hereunder shall be paid to the CHURCH at 3611 North Berens Road, Prior Lake, MN 55372, or such other place as determined by the CHURCH. The first year's rent shall be paid at the time the Lease Agreement is signed by both parties. 1 Laker LineslBlueXpress Parking Lot Lease April 1, 2010 Modified standard lease agreement CITY shall pay to CHURCH at the time the Lease Agreement is signed by both parties an amount equal to one and one-half times (1U) the initial rent payment as security deposit for the Leased Premises. The security deposit may be used by the CHURCH to restore the Leased Premises to its original condition, normal wear and tear excepted, upon termination or expiration of the Lease Agreement pursuant to paragraph 12, notwithstanding that the CHURCH may have consented to the alteration. The security deposit may also be used to pay any remaining unpaid rents. 6. INSURANCE. The CHURCH shall maintain in full force and effect during the term hereof, its policy of liability insurance consistent with the coverage that is provided for the remainder of the parking lot. CITY shall be responsible for the payment of any and all other insurance which it desires. 7. MAINTENANCE. The CITY shall be responsible for the maintenance and repair of the Leased Premises limited to sweeping, snowplowing, repairs specifically caused by bus use, repairs to any sigMge. and refuse collection, and will keep the Leased Premises in as good a condition as when turned over to CITY, reasonable wear and tear excepted. The CITY agrees to keep the Leased Premises in a clean and orderly condition and will neither do nor permit to be done therein anything which is in violation of insurance policies on the Leased Premises or that is contrary to any State or local law, ordinance or regulation thereof. The CITY will neither commit nor suffer waste to the Leased Premises. The CHURCH shall, at its own expense, keep in good order, safe condition and repair, the Leased Premises (including, but not limited to parking lot lighting, bituminous repair, and landscaping), except where repairs to the structural parts are required due to the fault or negligence of the CITY, its employees or invitees, in which case the CITY shall be responsible for reimbursing the CHURCH for the costs of such repairs, 8. APPEARANCE AND ACCESS. CITY, to the extent obligated herein, and CHURCH mutually agree to keep the grounds and the Leased Premises in a condition of good repair and appearance as their respective responsibilities and rights require. 9. ASSIGNMENT. The CITY shall not have the right to assign its interest in this Lease Agreement or to sublet the Leased Premises, or any part thereof. 10. BREACH OF LEASE TERMS. If the CITY or CHURCH shall default hereunder and such default shall continue for a period of fifteen (15) days after written notice from the other of such default, then it shall be lawful to terminate this Lease Agreement; provided that if the default be of such a nature that it may require more than fifteen (15) days to cure, the period to cure may be extended at the mutual agreement of the parties. The CITY and CHURCH shall cure any default with due diligence and within the time period provided herein. 11. ALTERATIONS. The CITY shall not make any alterations to the Leased Premises without the prior written consent of the CHURCH. The CHURCH shall not make any alterations to the Leased Premises without prior written notification to the CITY. If the CITY shall desire to make any such alterations, an accurate description shall first be submitted to and approved by the CHURCH and shall be done by the CITY at its own expense. 2 Laker Lines/BlueXpress Parking Lot Lease April 1 , 20..:!.Q. Modified standard lease agreement Approval shall not be unreasonably withheld. CITY agrees that all such work shall be done in a good, workmanship-like manner, and in conformance with applicable building codes, that the structural integrity of the Leased Premises shall not be impaired, and that no liens shall attach to the Leased Premises by reason thereof. The CITY shall and will in each instance save the CHURCH and said Leased Premises forever harmless and free of all costs, damages, losses and liabilities of every kind and character which may be claimed, asserted or charged, and will preserve and hold the CHURCH and said Leased Premises forever free and clear from liens for labor and material furnished. Any such alterations shall become the property of the CHURCH as soon as they are affixed to the Leased Premises and all right, title and interest therein of the CITY shall immediately cease unless otherwise stated in writing at the time of the approval. The CITY however, shall own any installed signage, and shall have the right to remove such signage at the expiration or termination of this Lease Agreement, so long as the Leased Premises is restored to its original condition. Any alterations to Leased Premises shall be restored to their original condition at the termination or expiration of this Lease Agreement and subject to the provisions provided in Paragraph 5 herein. 12. MECHANIC'S LIEN: Should any mechanic's or other liens be filed against any portion of the Leased Premises by reason of CITY's acts or omissions or because of a claim against CITY, CITY shall cause the same to be canceled and discharged of record by bond or otherwise within ten (10) days after receipt of notice from the CHURCH. Failure to comply with the provisions of this paragraph shall be grounds for the CHURCH to immediately terminate this Lease Agreement, and use the security deposit provided for in Paragraph 5 to satisfy any mechanic's liens. 13. SIGNS. The CITY shall have the right, at its own risk and expense, to place signs within the Leased Premises. CHURCH reserves the right to approve the design and location of all signs. Said signs shall not be erected without the written prior approval of the CHURCH, which approval the CHURCH will not unreasonably withhold. CITY agrees to maintain the sign(s) in good repair, to remove such sign(s) at the end of the term or any extended term of this Lease. 14. TERMINATION. Upon termination of this Lease Agreement, CITY shall deliver up the Leased Premises to the CHURCH in as good a condition as said Leased Premises shall be in as of the date of tender of possession subject to ordinary wear, tear and decay, the CITY agreeing not to leave the Leased Premises in an irregular or unkempt manner. Any alterations to Leased Premises shall be restored to their original condition at the termination or expiration of this Lease Agreement and subject to the provisions provided in Paragraph 5 herein. 15. NOTICES. All notices, consents, demands and requests which may be or are required to be given by either party of the other, shall be in writing and sent by United States registered or certified mail, with return receipt requested, addressed to the CHURCH at 3611 North Berens Road, Prior Lake, MN 55372, and to the CITY at 4646 Dakota Street S.E., Prior Lake, MN 55372. The date which said registered or certified mail is mailed by the CHURCH shall be conclusively deemed to be the date on which a notice, consent, demand or request is given or made. The above address of a party may be changed at any time, or from time to time, by written notice given by said party to the other party in the manner herein above provided. 3 Laker Llnes/BlueXpress Parking Lot Lease April 1, 20:!Q. Modified standard lease agreement 16. RENEWAL TERM. Provided that CITY is not in default under the terms and conditions of this Lease Agreement. the Lease term may be renewed by mutual agreement of both parties for an additional two-year term. 17. HOURS OF OPERATION OF LEASED PREMISES. CITY shall utilize the Leased Premises only during the hours of 5am to 8pm, Monday through Friday, except during the instances of extreme weather where it may be necessary to utilize the Leased Premises outside the normal business hours. In no instance shall the Leased Premises be operated during the weekend, except with express written consent of CHURCH. 18. ENTIRE AGREEMENT. This Lease Agreement represents the entire and integrated agreement between the parties hereto and supersedes all prior negotiations, representations or agreements, either written or oral with respect to the use of the Leased Premises. 19. COUNTERPARTS AND SIGNATORIES. This document may be signed in one or more counterparts which, when taken together, shall be one and the same agreement. The persons signing this Lease Agreement have been duly authorized by their respective entities to enter into this Lease Agreement. 20. HEADINGS, The headings herein are inserted only for convenience and reference and shall in no way define, limit or describe the intent of this Lease Agreement. 21. GOVERNING LAW / JURISDICTION. State of Minnesota (State) laws govern all questions and interpretations concerning the validity and construction of this Lease Agreement. 22. SEVERABILITY, If any provision of this Lease Agreement is held invalid, illegal or unenforceable by a Court of competent jurisdiction, the remaining provisions will not be affected. 23. EXHIBITS. This instrument contains all of the agreements made between the parties and may not be modified orally or in any manner other than by agreement, in writing, signed by all parties to this Lease Agreement. The following Exhibits listed below are made part of this Lease Agreement as if fully set forth herein: Exhibit A - Map delineating Leased Premises IN WITNESS WHEREOF, the parties hereto have caused this Lease Agreement to be executed the day and year first above written. CHURCH: CITY OF PRIOR LAKE CHURCH: SHEPHERD OF THE AKE LUTHERAN CHURCH Frank Boyles, City Manager BY: BY: Michael Myser, Mayor 4 Laker Unes/BlueXpress Parking Lot Lease ,'C' April 1, 2010 Modified standard lease agreement EXHIBIT "All (MAP DELINEATING LEASED PREMISES) 5