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HomeMy WebLinkAbout10A - Old Library Bldg. Lease CITY COUNCIL AGENDA REPORT &~fr [oWr- ,1 October 2, 2000 10A Frank Boyles, City Manager AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION APPROVING A THREE-YEAR LEASE OF THE OLD LIBRARY BUILDING. DISCUSSION: History: The 4300 square foot old library building located at Main Street and CSAH 21 is vacant. Over the last few months, we have been advertising the availability of the space. Our desire has been to lease the building for no more than five years so we are able to retain the flexibility to utilize the property to our best advantage as the Downtown redevelopment project proceeds. ISSUES: Current Circumstances: Cheryl and Richard Wilfond d/b/a Flowers Naturally of Prior Lake, have executed the attached lease agreement subject to City Council approval. The lease agreement includes the following terms: 1. The first floor of the building will be occupied by Flowers Naturally. The basement will continue to be available to the City for storage. 2. The term of the lease is three years beginning January 1,2001 and extending through December 31, 2003, although I have agreed to provide early access to the building subject to receipt of insurance and security deposit. The lease may be extended 12 months at the end of the third and fourth year. 3. The City will complete various upgrades to the building exterior to make it a prototype as recommended in the Downtown Redevelopment Guide including: installation of two 5x7 windows along CSAH 21 side, installation of awnings and six period lights for the building exterior. 4. The City will also do interior improvements including installation of the Lessee's sink and extension of HV AC ducts. 5. Flowers Naturally will install a cooler and is responsible for day-to-day interior maintenance and exterior plantings around the building. They will also pay for the exterior signage which is subject to City approval. 6. The lease amount is $7.00 per square foot per anum for 2000, $7.40 for 2001 and $7.80 for 2002. The lessee is responsible for all utility costs. The City plows the parking lot and sidewalk and will allow the lessee to dispose of refuse in the City Hall dumpster. Conclusion: The Council should consider approval of the lease so the building will be occupied with a desirable Downtown business. This lease proposal actually begins to implement the Downtown Redevelopment Guide in the following ways: 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 1:\COUNCIL\AGNRPTS\2000\1002_9A.DOC AN EQUAL OPPORTUNITY EMPLOYER j . n 1. Because the building exterior is to become a prototype, other Downtown property owners will be able to see how the improvements look, and get information from the City on vendors and costs. 2. Flowers Naturally is the type of retail business that is desirable Downtown. The adjacency of Flowers Naturally to the dance studio, City Perks and the Library can be beneficial to one another. 3. By leasing the property for a short time period, the City retains future flexibility to utilize the property as appropriate to foster future Downtown redevelopment improvements. 4. The lease proceeds which exceed City costs could be available to achieve other Downtown redevelopment objectives such as to assist in facade improvements (as a matching grant or interest write-down). ALTERNATIVES: (1) Adopt a Resolution Approving a three-year lease and authorizing an expenditure of up to $22,175 from the contingency account to accomplish interior and exterior building improvements outlined herein. (2) Take no action and direct staff to provide additional information. RECOMMENDED MOTION: Motion and second to adopt a Resolution approving a three-year lease of the old library building to Flowers Naturally of Prior Lake and authorizing expenditures for building improvements. 1:\COUNCIL\AGNRPTS\2000\ 1 002_9A.DOC RESOLUTION oo~() , A RESOLUTON APPROVING A THREE-YEAR LEASE OF THE OLD LIBRARY BUILDING. Motion By: Second By: WHEREAS, the 4300 square foot library building is vacant; and WHEREAS, the City Council desires to retain ownership of the building so that it continues to be a publicly-owned asset; and WHEREAS, the Downtown Redevelopment Guide recommends building designs and retail uses which are appropriate for the downtown area; and WHEREAS, a retail flower shop is one of the appropriate uses in the downtown area; and WHEREAS, Flowers Naturally has executed a three-year lease agreement which provides for improvement of the building exterior in accordance with the Downtown Redevelopment Guide; and WHEREAS, Flowers Naturally will plant and maintain the exterior flower beds as part of the lease agreement. Now THEREFORE, be it resolved by the City Council of the City of Prior Lake that the following are hereby adopted: 1. The Lease Agreement dated October 2, 2000 is hereby approved.. 2. The Mayor and City Manager are hereby authorized to execute said Lease Agreement on behalf of the City. 3. Funds for improvements associated with this Lease Agreement in an amount not to exceed $22,175 are allocated from the Contingency account. PASSED AND ADOPTED THIS 2ND DAY OF OCTOBER, 2000. Mader Mader Ericson Ericson Gundlach Gundlach Petersen Petersen Zieska Zieska YES NO City Manager, City of Prior Lake 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER ",~"'''''''''_''''M_'~__''''--_'.'_';_'___'''" '^ -.--.-.----.--r-''...'T..-----.-..---.........-..- . . . ""AA._~_....,._''',..."."..".... _~.~_.<_....'H_.---.,._.-.,. LEASE AGREEMENT THIS LEASE AGREEMENT is made and entered into this 2nd day of October, 2000 by and between the CITY OF PRIOR LAKE, MINNESOTA, a Minnesota municipal corporation (hereinafter referred to as "City'), and FLOWERS NATURALLY, a Minnesota corporation (hereinafter referred to as "Lessee'). In consideration of the mutual covenants and promises hereinafter set forth, the sufficiency of which are not disputed, the CITY and LESSEE do hereby agree as follows: 1. Description of the Premises. CITY does hereby lease to LESSEE and LESSEE does hereby lease and take from CITY, portions of the building described herein (hereinafter "Building') and located at 16210 Eagle Creek Avenue, Prior Lake, Minnesota 55372 (hereinafter collectively referred to as "Leased Premises'). a. LESSEE shall be entitled to occupy 4,300 square feet on the first floor of the Building and the bathrooms on the lower level. b. CITY shall be entitled to use rooms on the lower level of the Building if said use by CITY does not negatively impact LESSEE's use of Lease Premises. c. LESSEE shall be entitled to the use of ten (10) regular parking stalls and two (2) handicapped parking stalls immediately adjacent to the north side of the building. 2. Term. This Lease Agreement shall be for a term of three (3) years commencing on the 1 st day of January, 2001 and terminating on the 31st day of December, 2003. The Lease Agreement may, at the option of the City, be renewed from year to year thereafter with the same terms and conditions except that the lease amount per square foot is subject to negotiation. 3. Use of Leased Premises. The Leased Premises shall be used and occupied by Lessee solely for retail and office purposes 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 Buildina Improvements to Leased Premises. CITY shall be responsible for those improvements to the Leased Premises and Building as set forth below in this Lease Agreement. However, in no event shall the CITY be obligated to expend more than $22,175 on "building improvements". In the event said "building improvements" are likely to exceed $22,175, either of the following shall occur: (1) the CITY and LESSEE shall prioritize the improvements and delete work that is expected to result in causing said "building improvements" to exceed $22,175, or (2) the LESSEE shall pay any amount exceeding $22,175 for the "building improvements" set out below. Said "building improvements" shall not exceed $22,175 subject to the foregoing. The CITY's responsibilities for improvements to the Leased Premises and Building are limited to the following: a. Repairs to Leased Premises. Extension of hot and cold water pipes, sewer pipes and installation of sink and faucet supplied by LESSEE in work room area per LESSEE. $1800 1 Connection of HV AC ducting on west side of building (above suspended ceiling) to east side of building. $1000 b. Repairs to Exterior. Install two 5'xT windows on CSAH 21 side of building. $14,000 Acquire and install awnings for Main Street windows and entry. (not CSAH 21 side) $2400 Acquire and install period six exterior lights for building on Main Street and CSAH 21 walls. Total... . $2975 $22,175 c. Structural Repairs to Leased Premises. CITY acknowledges that the basement of the Leased Premises has problems relating to moisture as described in a letter from Advanced Certified Thermography to Mr. Robert Hutchins, City of Prior Lake Building Official, dated January 3, 2000 ("Report"). The Report is incorporated by reference as Exhibit A. The Report sets out a number of findings and recommendations. The CITY agrees that it has "removed" the damaged areas and cleaned them per the enclosed sheet from the General Clinical Research Center" prior to occupancy by the LESSEE. See page 2 of Report. The CITY will not be responsible for any other recommendations set out in the Report. 5. Rent and Security Deposit. LESSEE shall pay monthly rent in the 'amount of Two Thousand Five Hundred Eiqht and 00/100 Dollars ($2,508.00) per month for the Leased Premises for the calendar year 2000; Two Thousand Six Hundred Fifty-Two and 00/100 Dollars ($2,652.00) per month for the Leased Premises in' calendar year 2001; and Two Thousand Seven Hundred Ninety-Five and 00/100 Dollars ($2,795.00) per month for the Leased Premises in calendar year 2002. Rent payments shall be made on a monthly basis and paid by the 10th day of the given month in which payment is due. A late fee of $25.00 per day shall be assessed for payments received after the 10th day of the month. All rental payments required hereunder shall be paid to the CITY at 16200 Eagle Creek Ave. S.E., Prior Lake, MN 55372, Attn: Finance, or such other place as determined by the CITY. The LESSEE shall pay a security deposit equal to the monthly rent, which shall be paid as follows: $1,397.50 due to the City, together with the first month's rent, no later than January 10,2001; and the remaining $1,397.50 due to the City, together with the monthly rent for July, no later than July 10, 2001. 6. Other Costs. LESSEE shall be responsible for the payment of all sewer, water, gas, electric, telephone, refuse, custodial services and supplies and electrical and telephone modifications to the Leased Premises necessary for LESSEE's use of the Leased Premises. The LESSEE shall pay any and all insurance which LESSEE desires to insure its own property which is located and situated on the Leased Premises. CITY shall not be liable to LESSEE for any loss or damage of any kind whatsoever caused or sustained by reason of CITY's inability to obtain energy or utilities for any reason beyond CITY's control. 7. Insurance. The LESSEE shall maintain in full force and effect during the term hereof, a policy of public liability insurance in a form acceptable to the City Attorney. The minimum limits of liability of such insurance shall be $1,000,000 for injury or death to anyone person, $1,000,000 for injury or death to more than one person and $500,000 for property damage. LESSEE shall be responsible for the payment of any and all other insurance which it desires, andlor a public liability policy 2 . ..----.----.~-r-.___r_-----..- which insures LESSEE above the limits as required hereunder of the CITY. The CITY shall be named as an additional insured in the public liability policy. Said policy shall contain a provision that the insurance cannot be terminated without 30 days written notice by the insurance company to the CITY. LESSEE shall provide CITY with a Certificate of Insurance which conforms with the provisions herein, before LESSEE may operate at the Leased Premises. The CITY shall carry and cause to be in full force and effect a fire and extended coverage insurance policy on the Building containing the Leased Premises, but not the contents owned, leased to, or otherwise in possession of the LESSEE. Said fire and extended coverage insurance policy on the Building covers, without any rating surcharge, a wide range of uses. If LESSEE refuses to follow directions from the Fire Inspection Bureau, or general housekeeping causing City's fire and extended coverage insurance premiums for the Building to increase, then the LESSEE agrees to pay to CITY any increase in CITY's premium. Waiver of Subrogation: To the extent such waiver does not void or diminish the coverage under any policy, LESSEE and CITY hereby waive any rights each may have against the other on account of any loss or damage occasioned to LESSEE or CITY, as the case may be, or their respective property, to the extent such loss or damage is covered by insurance covered by either LESSEE or CITY. 8. Indemnity. The LESSEE agrees that it will, at all times, indemnify and save, protect and keep harmless the CITY and the Leased Premises from every and all costs, loss, damage, liability, expense, penalty and fine whatsoever, which may arise from or be claimed against the CITY or the Leased Premises by any person or persons, for any injuries to person or property, or damage of whatever kind or character to the extent such damages are consequent upon or arising from the use or occupancy of said Leased Premises by the said LESSEE, or consequent upon or arising from any neglect or fault of the LESSEE or the agents and employees of LESSEE, in the use and occupancy of the Leased Premises, or consequent upon or arising from any failure by the LESSEE so to comply and conform with all laws, statutes, ordnances and regulations of the United States, the State of Minnesota or the City, now or hereafter in force; and if any suits or proceedings shall be brought against the CITY, or the said Leased Premises, on account of any alleged violation thereof, or failure to comply and conform therewith or on account of any damage, omission, neglect or use of said premises by the LESSEE, or the agents and employees of the LESSEE, or any other person on said premises, the LESSEE agrees that the LESSEE will defend the same, and will pay whatever judgments may be recovered against the CITY or against said Lease Premises on account thereof. 9. Maintenance. The LESSEE shall be responsible for making all nonstructural repairs to the Leased Premises except those described in Paragraph 4 of this Lease Agreement. The LESSEE agrees to keep the Leased Premises in a clean, orderly and sanitary condition and will neither do nor permit to be done therein anything which is in violation of insurance policies on the Building or that is contrary to any federal, state or local law, ordinance or regulation thereof. The LESSEE will neither commit nor suffer waste to the Building or to the Leased Premises. The maintenance and repair obligations of the LESSEE specifically extend to all interior walls, interior and exterior windows, flower beds, turf areas and to all doors and electrical fixtures that serve the Leased Premises. LESSEE is responsible planting and maintaining vegetation acceptable to the City along the CSAH 21 side of the building between the sidewalk and building, the window box at the front of the building and the planting beds along the northeast portion of the building. 3 LESSEE is responsible for acquiring and installing signage for Main Street and CSAH 21 exterior walls reading "Flowers Naturally". Size and content fo such signs shall be in accordance with Exhibit C and the location of installation shall be approved in advance by the City. The CITY shall, at its own expense, keep in good order, safe condition and repair, the structural parts of the Building (including, but not limited to, roof, exterior walls, foundation and floor and the Buildings heating and cooling systems) in which the Leased Premises are located, except where repairs to the structural parts are required due to the fault or negligence of the LESSEE, its employees or invitees, in which case the LESSEE shall be responsible for reimbursing the CITY for the costs of such repairs. 10. Appearance and Access. CITY, to the extent obligated herein, and LESSEE mutually agree to keep the grounds, Building, and the Leased Premises in a condition of good repair and appearance as their respective responsibilities and rights require. LESSEE agrees to keep all of its trash containers, refuse and waste within the Leased Premises and agrees not to litter any of the grounds or entries. LESSEE acknowledges that, upon occupancy of Leased Premises, LESSEE will cause the Leased Premises to be inspected in order to ascertain the condition thereof, that any objections thereto not delivered in writing to the CITY within ten (10) days after occupancy shall be deemed waived; and that no representations, either expressed or implied, have been made regarding the quality or condition or suitability of the Leased Premises for the purposes for which it is leased. 11. Assianment. The LESSEE shall not have the right to assign its interest in this Lease Agreement or to sublet the Leased Premises, or any part thereof without the prior written consent of the CITY, except that LESSEE may once assign this Lease Agreement to an entity which is an affiliate or parent of LESSEE. Any approved assignment or sublet shall be subject at all times to the provisions of this Lease Agreement, provided, however, in such an instance, LESSEE shall at all times remain obligated hereunder, the same as though no assignment or sublease had occurred. LESSEE agrees that it will not permit any assignment hereof by operation of law without the consent in writing of the CITY, first hand and obtained. No assignment for the benefit of creditors or by operation of law shall be effective to transfer any rights to the said assignee without the written consent of the CITY, first hand and obtained, which consent shall not be unreasonably withheld. 12. Breach of LESSEE. If the LESSEE shall default hereunder and such default shall continue for a period of fifteen (15) days after written notice from the CITY of such default, then it shall be lawful for the CITY to terminate this Lease Agreement and enter into and take possession of the Leased Premises and remove all persons and their property therefrom; 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 with the written permission of the CITY. Said time to cure default may be extended for such period of time as specified by CITY's written notice to LESSEE. The LESSEE shall cure any default with due diligence and within the time period provided herein. 13. Alterations. Except as provided for in Paragraph ~ of this Lease Agreement, the LESSEE shall not make any alterations to the Leased Premises without the prior written consent of the CITY. If the LESSEE shall desire to make any such alterations, an accurate description shall first be submitted to and approved by the CITY and shall be done by the LESSEE at its own expense. Approval shall not be unreasonably withheld. LESSEE 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 Building shall not be impaired, and that no liens shall attach to the Leased Premises by reason thereof. The LESSEE shall and will in each instance save the CITY 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, including liability to 4 adjacent owners based upon the acts or negligence of said LESSEE or their agents, contractors or employees, and will preserve and hold the CITY and said Leased Premises forever free and clear from liens for labor and material furnished. Any such alterations shall become the property of the CITY as soon as they are affixed to the Leased Premises and all right, title and interest therein of the LESSEE shall immediately cease unless otherwise stated in writing. The LESSEE however, shall remain the owner of any installed trade fixture and shall have the right to remove such trade fixture at the expiration or termination of this Lease Agreement, so long as the 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. 14. Mechanic's Lien. Should any mechanic's or other liens be filed against any portion of the premises by reason of LESSEE's acts or omissions or because of a claim against LESSEE, LESSEE shall cause the same to be canceled and discharged of record by bond or otherwise within ten (10) days after notice by CITY. Failure to do so shall be considered a breach of this Lease. For the purpose of this paragraph, the ten (10) day notice provision shall superced the notice provision set out in paragraph 12. 15. Termination. Upon termination of this Lease Agreement, LESSEE shall deliver up said premises to the CITY 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 LESSEE agreeing not to leave the Leased Premises in an irregular or unkempt manner. 16. Rules and Reaulations. The LESSEE shall perform, observe and comply with all Building rules and regulations of the CITY with respect to the safety, care and cleanliness of the Leased Premises, and the preservation of good order thereon, and, upon written notice thereof to LESSEE, LESSEE shall perform, observe and comply with any changes, amendments or additions thereof as from time to time shall be established and deemed advisable by the CITY. Said rules and regulations shall be in writing. 17. Entrv. During the ninety (90) days prior to the expiration of the initial lease term or written notice, the CITY or its agents may exhibit the Leased Premises to prospective lessees. 18. 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 LESSEE at the Leased Premises and to the CITY at 16200 Eagle Creek Ave. S.E., Prior Lake, MN 55372; attention City Manager. The date which said registered or certified mail is mailed by the CITY 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 notice given by said party to the other party in the manner herein above provided. 19. Claims. The LESSEE will make no claim against the CITY for any loss of or damage to property andlor the Leased Premises caused by theft, burglary, water, gas, electricity or other means. 20. Fire Repair. In the event of damage to the Leased Premises by fire, the elements or other casualty, the CITY shall repair the damage with reasonable dispatch. If the damage renders the Leased Premises untenantable in whole or in such part that it is impractical to conduct business therein, the rent shall wholly abate until the damage has been repaired. If the extent of the damage is such that it is not financially prudent to repair or rebuild Leased Premises, the CITY may terminate the Lease Agreement, in which case the LESSEE agrees to waive any and all claims or whatever nature it may have against the CITY. 5 21. Quiet Eniovment. LESSEE, upon payment of the rent herein reserved and upon performance of all of the terms, covenants and conditions of this Lease Agreement by it to be kept and performed, shall at all times during the term hereof or during any extension or renewal hereof, peaceably and quietly enjoy the Leased Premises without any disturbance from CITY. LESSEE understands and agrees the use of the Building may not be suitable for the purposes for which . LESSEE is leasing Leased Premises. Upon expiration of the Lease term or earlier termination of the Lease because of a breach of this Lease Agreement, LESSEE shall surrender the Leased Premises in good condition and repair, except for reasonable wear and tear. 22. Renewal Term. At the termination of the term of the Lease set out in Paragraph 2 of this Lease Agreement, and provided that LESSEE is not in default under the terms and conditions of this Lease Agreement, the Lease term may, at the sole discretion of the CITY, be extended on a year to year basis, but in no event for a term beyond December 31,2005. a. The CITY shall provide LESSEE sixty (60) days written notice of its intent not to permit LESSEE to extend this Lease Agreement beyond the initial three (3) year term. Thereafter, if LESSEE occupies the Leased Premises, CITY shall provide LESSEE with sixty (60) days written notice of its intent to terminate this Lease Agreement. b. LESSEE shall provide CITY sixty (60) days written notice of its intent not to extend the initial term of this Lease beyond the initial three (3) year term. Thereafter, if LESSEE occupies the Leased Premises LESSEE shall provide City sixty (60) days written notice of its intent to vacate the Leased Premises. 23. Holdina Over. If LESSEE shall hold over the Leased Premises or any part thereof after the expiration of the initial term hereof or any extension thereto, such holding over shall be construed only to be a tenancy from month to month subject to all of the covenants, conditions and obligations hereof except that the rent shall increase by five percent (5%) of the amount identified in Paragraph 5 herein plus the increase in operating expenses. Nothing herein shall be construed to give LESSEE any rights to hold over or to continue in possession of the Leased Premises. 24. Nondiscrimination. In connection with the execution of this Lease Agreement, the LESSEE agrees that it and any of its subcontractors, material suppliers and vendors shall not discriminate against any employee or applicant for employment because of race, creed, age, sex religion or national origin. The LESSEE will take affirmative actions to insure that applicants are employed, and that employees are treated during employment without regard to race, color, sex or national origin. Such actions shall include, but not be limited to, the following: employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination, rates of payor other forms of compensation, and selections for training, including apprenticeship. 25. Certificate of Compliance for Public Contract. If LESSEE has employed more than twenty (20) full-time employees in Minnesota at any time during the previous twelve (12) months, it shall have an affirmative action plan for the employment of minority person, women and the disabled that has been approved by the Commissioner of Human Rights. The LESSEE shall submit receipt of a Certificate of Compliance issued by the Commissioner signifying that the LESSEE has an approved Affirmation Action Plan by the State Human Rights Department. 26. Compliance with State and Federal Laws. LESSEE, in connection with the execution of this Lease Agreement, assumes compliance with the statements and conditions in the Equal Employment Opportunity Assurance included in Exhibit liB". 27. Entire Aareement. 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. 6 -.. .....--...-.."""1'. II 28. Counterparts and SiQnatories. 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. 29. 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. 30. GoverninQ Law I Jurisdiction. This Lease Agreement shall be governed by the laws of the State of Minnesota and such laws shall govern all questions and interpretations concerning the validity and construction of this Lease Agreement and the legal relations among the parties and performance under it. If any provision of this Lease Agreement is held invalid, illegal or unenforceable, the remaining provisions will not be affected. 31. 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 __ Letter from Advance Certified Thermography to Robert Hutchins dated January 3, 2000. Exhibit B -- Equal Employment Opportunity Assurance Exhibit C -- Sign Design 32. Other Provisions. The invalidity or unenforceability of any provision hereof shall not affect or impair the validity of any other provision. 33. Waiver. One or more waivers of any covenant, term or condition of this Lease Agreement by the CITY shall not be construed by the LESSEE as a waiver of a subsequent breach of same covenant, term or condition. The failure or delay on the part of the CITY to enforce or exercise at any time any of the provisions, rights or remedies of this Lease Agreement shall in no way be construed to be a waiver thereof nor in any way effect the validity of this Lease Agreement or any part thereof or the right of the CITY to thereafter enforce each and every such provision, right or remedy. 34. BindinQ Effect. This Lease Agreement and the covenants and conditions herein contained, shall inure to the benefit of and be binding upon the CITY, its successors and assigns, shall be binding upon LESSEE, their heirs, successors and assigns, and shall inure to the benefit of LESSEE and only such assigns of LESSEE to whom the assignment by LESSEE has been consented to by CITY. IN WITNESS WHEREOF, the parties hereto have caused this Lease Agreement to be executed the day and year first above written. By: Wesley M. Mader, Mayor LESSEE: FLOWERS NATURALLY //} B' Its: p CITY: CITY OF PRIOR LAKE By: Frank Boyles, City Manager 7 J EXHIBIT A.. Advanced Certified Thermography 15769 lSrla Street South Alton, MN 55001 {(51)436-5120 Fgx (651)436-1903 ~..--- .....--- r;:::-r~ r . '.~ to:: \ I :-")"E ". ..! - .. I;"'~ ; I'tt ~:':. ,:-. - ..;.. - .. '-.. , . " ,. . ,. . .~ ::\ ~ J~ - 5 l:(}C '! . ;'\' ~i. ~ \:.- January ~. 20~0 Robert Hutchim Building Official City of Prior Lake 16200 EaaJe Creek AVf;lJUC S. E. PriorLake. MN SS372-1714 DeMMr.Hut~ At your requ~ I completed an inspection of'yaur vaeant libnxy racility. The objective of~ i:n$pcc:tioa 'WllS to d~m:c1nc the ~Qurce of'mtcr penctrarion into the lower IGYCl of~ building. Moisture probes were used to determine the moisture amtent of the finished surfaces in this building. FiIldinZ! '. . . .., . . De1mhorst 1-4 moistutt prob~ were used tbIQugbout the fad1ity tQ determine both a bq.se moisture coment and to id~ any areas of elevated moisture tontent . MoisbJfc conlcnt ofbuildicg components throughout th~ building were foood to be betwcco 8-10"10. Two Ue3S were DOted to be elevated. These were: ?melcd am at bottom of the stairs on the ba.ck side of the btliIding (Approximately &' ofw:aU area) Gypsum wall in northwest b~aIt nJom (Apprmdroa1cly 10' of'wallarea) Both areas Wc:l"e above 20% moisture (Oontm!, and the 8YP~m wall WI.! measured at 30C'.Io in one are2. "Ibis higher moisture content area had a saWI se~on of maId growth(<:l foOl square) on the S)'PS\11n and some mold growth behind the floor . molding in thi~ area. Samples ofthU Enold were tuen for idmtificatioEl purposes. and the sampl~ were identi.6.cd as Stachybotrys.cbarta.mm (atra). Although & paz:ti~ly to.xiCi mold. the area orco~laminatian is quite small. 1 have enclosed a pase tram the General Clinical Rese.:lt'eh Center. on cleaning this area. aoth areas noted with elevated moisture contl!int were u:5oc:iatc:cl with roof' SQIppc.t$ and their down ,pouu. The scuppers loCated 011 the back(south) lide of the building dumped their wiler next to the building, and the scupper OD the front(oorth) dumped into a &Uner through the walkway. When the c;ovcr '9I1L$ removed fi'om the sutter, huge cncks in the cttnerrt were found along the building. ~o\- 1.0\~ d.D'~ ~f; ~ were allowing ~Cf to paletnltc aJQt1g the roundAtiQt1 in this &rea. Most orthe this foundation and sidewalk intcrtAo: on this side of the boilding had gaps along the foundation that should be s.u1ed. Rccopuue.DdatioDs For the :KiUppas on tlu: bAck(tlCrth) lidc of the building they' 5hould have a. gutter. system thr~l:'gh tP-c sidewalk t(J dired tNs watc:r into ,the street The ~tters on ~c front side of the building should be repaired to allow the water to drain to the parking area. a.s intended. 1 would wo recommend that the sidewalk and foundation gap be au1k~ with a mdbanc or butyl ~u1lc. J With 1his done. 1 would remove the damased 8I1:U and clean them per the " es1c1o:led sheet from the Gener.al Clinical R.escueh Center. . If)'ou havo any 'luemotl4 or ifl can be of 1Unher B.$.1inancc, I ~ be reached at (6S 1)436-5120. Sinectdy, &G;l R.~ Stephen It KlOsSner LIGHT GROW'Ill . If you ~ meR: llwl. sqaan: foot cfmold STOWth yau should scdI: P~aaJ adri~ 011 ball' \0 p;d'onn the dea4-up. .1"he JatU1;C of' the ~ JGblcm must ~ be t:QTRdcd. All nxIf' or plumbiDg ~ nwgbefixQ1 . .. . AU tOol4y suriao:s sbou1d be clc3ned 'with II ho~ho1d b~ \1ikc OofClX) aDd . ~ mix" 1 cup ofblcolch mL"<Cd in 1 plloa OrMItt. You can add a llnle dish smp 10 the bbc;;h ymcr Ia on 4irt a:a.l1 ail QJ1 U\Q 1Y3lll.b:rt can hold mold. With ~ Tatih:iou, -wl1 Lbc ~ MtCt mix to the 5lltf.&cc lrilll a 5pO~ let it sit for 15 In;rmt~. tMn thCl'J'WCbly drt thG ~, & $UIC to 1R:II' I dust mask. lUbber ~ aM opctlJota Gf'~ 1V~ dc;aaiu, with bbW lRta. · J!1hc ;ua cumoc be t1..,~ (lib: ~ 1Iftt bnIb:o ~ tiles). 'is b:)Q ~ or is c1isposabl.c: (like cudboiatd boEz:s) ~ dx:m -.Dd repbQ: wilh DCW~. . II m:q be ~"Y IQ do IGCR dean up in the ~ (c;:upcts. ca.wl ~) if )'aU 11M a ~ IDOld pzab1em.. . . - ........~_._-_...........,..-..---,r--...-. EXHIBIT "B" Equal Employment Opportunity Assurance FLOWERS NATURALLY hereby agrees that it shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin, marital status, status with regard to public assistance, disability, political affiliation or sexual preference. Dated: 9-1 f -t.:O LESSEE: FLOWERS NATURALLY ~~<JI:F W4~ U<-Z-/ W~/ 8 .:: .. .:-~ .......- Jf.,! ,J: EXHIBIT "e" 9 '~"'--"~---r--..............-----'-----' vaLL~_.nAl ..-------.-.-...--....-. _ .:~.. ~~-{~:~::t::l ~ _.re ADVANTAGE Signs, Decals, Screenprinting, Embroidery, Promotional Items PO Box 392 16511 Duluth Ave SE Prior Lake, MN 55372 952-447-4560 fax 952-447-5200 Customer cn'( OF PL.. Name 'l) 0 tJ f2- V ~ Phone No. 44,- 9 ~ \ \ Purchase Order No. Date <;S- 3>0.-00 By ~F\A.J Fax Due Date Time MatI's Ordered Supplier Ph. No. n\J~'I'1 ~ Vert. Material 2 sided ~ Address City & Zip Qty '2- Size ;:)' x: \D' Color: Background Font Styles Instructions: Lettering Border 2x10 exterior sign quote Copy:. Regular Copy sign with no graphics Quoted Price $ Sketch/Digitize/Screen Charge $ Signs $ ea. $ Total Letters Only $ Install Hourly Rate $ Materials Fabricate Tax hrs. S $ S S $ $ $ $ 2 each 2x10 exterior dura ply custom graphics $420.00 each Dan Valley Sign 447-4560 Shipping Truck Exp. Total $230.00 each All material is guaranteed to be as specified. All work to be completed in a workmanlike manner according to standard practices. Any alteration or deviation from above specifications involving extra costs will be executed only upon written orders, and will become an extra charge over and above the estimate. All agreements contingent upon strikes. accidents or delays beyond our control. Owner to carry fire. tornado and other necessary insurance. Our workers are fully covered by Workmen's Compensation Insurance. days ~ ccellhmce of m rOllosnl- The above prices, specifications ~d conditions are satisfact~;Y and are hereby accepted. You are authorized to Signature do the work as specified. Payment will be made as outlined above. Date of Acceptance: Signature to-