HomeMy WebLinkAbout5C - City Perks Lease
MEETING DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
DISCUSSION:
CITY COUNCIL AGENDA REPORT
16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
February 22, 2005
5C
Kelly Meyer, Assistant to the City Manager
CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING THE MAYOR AND CITY
MANAGER TO ENTER INTO THE CITY'S STANDARD LEASE AGREEMENT WITH
CITY PERKS FOR THE COFFEE SHOP SPACE LOCATED WITHIN THE LIBRARY
RESOURCE CENTER AT 16210 EAGLE CREEK AVENUE.
History: The 480 square coffee shop space located within the Library Resource Center is
currently occupied by Dean Reeve and Kelly Siese d/b/a City Perks. Mr. Reeve and Ms.
Siese purchased the business in February 2002. The initial 3 ye'ar lease term for the space
expired on February 4,2005. The lease agreement provided for an optional3-year renewal
term with built-in lease payments of $1215, $1276, and $1340 per year respectively. The
lease renewal has not been exercised.
Current Circumstances: Mr. Reeve and Ms. Siese approached the City to re-negotiate
the renewal option of their current lease. Since they began operating City Perks in 2002,
they believe changes have taken place that may have affected the business. These
changes include privatization of the dance program, and the reduction in the hours of
operation of the Library. They also have concerns that the renewal lease rates are above
the market, and that a new bakery in the area may have a significant impact upon their
coffee shop.
For these reasons, the City agreed to re-negotiate the renewal term of the existing lease.
The staff began by reviewing the commercial lease rates for properties in the area. It is
difficult to make direct comparisons because few facilities are as small as the City Perks
space (most require a minimum of 1000 sq. ft.), some have operating and common area
maintenance costs added over and above the rent payments (City Perks does not), and
many of the facilities are of a lesser quality that the current City Perks lease space. Given
this research, staff is recommending that the City enter into a new lease agreement with
City Perks, and has re-negotiated the terms set forth below. The existing rate of $1000 -
$1100 per month ($25.00 - $27.50 per square foot) appears to be the existing market in
Scott County.
At the same time, the City is sensitive to the other concerns raised by the business owners
regarding reduction in hours of operation of the Library, and privatization of the dance
program, and wants to be pro-active in assisting an established member of the Downtown
Prior Lake business community when appropriate. The City is also responsible for
www.cityofpriorlake.com
1:\CQUNCIL\AGNRPTS\2005\CITY P~~!-~~I4<991230 / Fax 952.447.4245
ALTERNATIVES:
RECOMMENDED
MOTION:
REVIEWED BY:
protecting the public interest in the Library Resource facility. As such, we have negotiated
the following lease terms.
1. The lease will be for a term of one year beginning February 2005 and extending
through January 31, 2006. This will allow the business owner to gauge and evaluate
any impacts a new bakery may have on its operations and ultimately determine if he
wishes to exercise the four-year renewal option.
2. The lease payment for the initial term will be $1000 per month ($25.00/sq.ft.).
3. Thereafter, the lease agreement provides for a four year renewal option, at the sole
discretion of the City, with monthly rents in the amount of $1000 for renewal years one
and two, $1050 in year 3, and $1100 in year 4.
4. The City will also be responsible for paying the real estate taxes associated with the
City Perks portion of the facility.
5. The lease provides no other changes to the City's or the Lessee's responsibilities from
the previous lease.
Conclusion: The attached lease agreement is the City's standard lease agreement,
modified to outline the terms set forth above. The agreement has been executed by Dean
Reeve and Kelly Biese. The Council should consider whether the terms of the agreement
are acceptable.
(1) Adopt a Resolution Authorizing the Mayor and City Manager to Enter into a one-
year lease agreement between the City of Prior Lake and City Perks for the
lease of the 480 square foot coffee shop space within the Library Resource
Center.
(2) Take no action and direct staff to provide additional information.
Motion and second to adopt a Resolution approving a one-year lease as outlined
above.
1:\COUNCIL\AGNRPTS\2005\CITY PERKS LEASE.DOC
16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
RESOLUTION 05-XX
A RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER
TO ENTER INTO A LEASE AGREEMENT WITH CITY PERKS FOR THE
COFFEE SHOP SPACE LOCATED WITHIN THE LIBRARY RESOURCE CENTER
AT 16210 EAGLE CREEK AVENUE.
Motion By:
Second By:
WHEREAS, in February 2002, Dean Reeve and Kelly Biese purchase the City Perks coffee shop and
entered into a three year lease for 480 square feet of space within the Library Resource
Center; and
WHEREAS, the lease agreement provided for a renewal term of three years with a defined lease
payment; and
WHEREAS, over the course of the initial three year term circumstances including the privatization of
the dance program, and a reduction in hours of operation of the Library have occurred,
and the opening of a new bakery is imminent; and
WHEREAS, as a result of these circumstances, the owners of City Perks have asked to re-negotiate
the renewal term of their existing lease; and
WHEREAS, the City is sensitive to the concerns raised by Mr. Reeve and Ms. Biese and desires to
retain City Perks as a viable Downtown Prior Lake business; and
WHEREAS, City staff have re-evaluated the terms of the lease and have negotiated a new lease which
meets the needs of the City and the owners of City Perks.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA
that:
1. The recitals set forth above are incorporated herein.
2. The Mayor and City Manager are hereby authorized to enter into a one-year lease agreement with
City Perks for the coffee shop space located within the Library Resource Center at 16210 Eagle
Creek Avenue, Prior Lake, MN.
PASSED AND ADOPTED THIS 22nd DAY OF FEBRUARY, 2005.
Haugen Haugen
Fleming Fleming
LeMair LeMair
Petersen Petersen
Zieska Zieska
YES
NO
City Manager, City of Prior Lake
www.cityofpriorlake.com
Phone 952.447.4230 / Fax 952.447.4245
City of Prior Lake, Minnesota
LEASE AGREEMENT
THIS LEASE AGREEMENT is made and entered into this day of , 2005, by and
between the CITY OF PRIOR LAKE, MINNESOTA, a Minnesota municipal corporation (hereinafter
referred to as "CITY", and CITY PERKS, INC. a Minnesota corporation (hereinafter referred to as the
"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 certain premises consisting of 480 square feet (the specific
location of the premises is as outlined and delineated on the attached Exhibit "A") (hereinafter
referred to as "Leased Premises"), and located in the Prior Lake Library/Resource Center
building at 16210 Eagle Creek Avenue, Prior Lake, Minnesota 55372 (hereinafter "Building").
2. TERM. This Lease Agreement shall be for a term of one (1) year commencing on the 1 st day of
February 2005, and terminating on the 31 st day of January, 2006.
3. USE OF PREMISES. It is agreed that the Leased Premises may be used by the LESSEE for
retail food and beverage space, with the exception of vending machines, subject to all local, state
and federal laws and regulations regarding the use of the Leased Premises. However, any'other
use shall require the written consent of the CITY, which shall not be unreasonably withheld.
4. RESPONSIBILITY OF CITY REGARDING LEASED PREMISES. The CITY is responsible for
and shall pay all utility charges, property tax payments, property insurance premiums on the
Building (exclusive of furnishings for the Leased Premises) and all repairs, maintenance and
services for the Building unless excepted therefrom in this Lease Agreement. The LESSEE shall
be responsible for making nonstructural repairs to the Leased Premises (See Paragraph 8).
CITY shall not be liable to LESSEE for any loss or damage of any kind whatsoever caused or
sustained by reason of failure of any mechanical system within the Building including, but not
limited to the heating or ventilating and air conditioning system servicing the Leased Premises or
because of inability to obtain energy or utilities for any reason beyond CITY's control.
5. RENT AND SECURITY DEPOSIT. LESSEE shall pay CITY monthly rent in the amount of One
Thousand and no/100 Dollars ($1000.00) for the Leased Premises for the lease term. Rental
payments for any renewal term shall be in accordance with section herein. 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 $5.00 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, or such other place as determined
by the CITY. The first month's rent shall be paid at the time the Lease Agreement is signed by
both parties.
LESSEE shall pay to CITY at the time the Lease Agreement is signed by both parties an amount
equal to one and one-half times (1;h) the initial rent payment as security deposit for the Leased
Premises. The security deposit may be used by the CITY to restore the Leased Premises to its
original condition, normal wear and tear excepted, upon termination or expiration of the Lease
Agreement. If the security deposit is insufficient to cover all costs of such repair, LESSEE (not
business) shall be personally liable for the balance of the cost of repairs.
'"---'-------~_.._-.,--_._.
Coffee Shop Lease
Library/Resource Center
February 2005
6. 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 $500,000.00 for property damage. LESSEE shall
be responsible for the payment of any and all other insurance which it desires, and/or a public
liability policy which insures LESSEE above the limits as required hereunder of the CITY. The
CITY shall be named as an additional insured on 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. In the event,
however, the LESSEE changes the use of the Leased Premises or contents kept in the Leased
Premises, or 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 to their
respective property, to the extent such loss or damage is covered by the LESSEE's or the CITY's
insurance.
7. INDEMNITY. The LESSEE agrees that it will, at all times, indemnify and save, protect and keep
harmless the CITY, including but not limited to its Council, staff and employees, agents and
employees, attorneys, 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 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, ordinances and regulations of the United States, the State of
Minnesota and 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 Leased
Premises on account thereof; provided however that the LESSEE shall not be required, and
nothing in this paragraph shall be construed as requiring LESSEE to indemnify CITY against any
costs, losses, damages, liabilities, expenses, penalties, fines or claims of any type arising from
the acts, omissions or negligence of CITY, its agents or employees.
8. MAINTENANCE. The LESSEE shall be wholly responsible for the maintenance and repair of the
interior of the Leased Premises including all interior walls, all door and electrical fixtures, and will
2
city perks lease2005
Coffee Shop Lease
Library/Resource Center
February 2005
keep the Leased Premises in as good a condition as when turned over to LESSEE, reasonable
wear and tear excepted.
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 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 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 concrete
floor) 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.
9. 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 tolitte-r-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 oflhe Leased Premises.
1 O. CONDEMNATION. If substantially all of the Leased Premises shall be taken under the power of
eminent domain, then the term of this Lease Agreement shall cease as of the day possession
shall be taken and gross rent shall be paid up to that date with a proportionate refund by CITY of
such rent as may have been paid in advance. If more than twenty percent (200/0) of the floor
space in the Building shall be taken under the power of eminent domain, LESSEE shall have the
right to terminate this Lease Agreement as of the day possession shall be taken by notice to
CITY given within ten (10) days after possession is taken. If more than one-third (1/3) of the
parking area in the Building in which the Leased Premises is situated is taken under the power of
eminent domain, LESSEE shall have the right to terminate this Lease Agreement as of the day
possession shall be taken, unless a reasonably equivalent substitute parking area is provided.
LESSEE shall be allowed a reasonable time not to exceed sixty (60) days after any such
termination to vacate the remainder of the Leased Premises and rent shall be paid up to the day
possession be taken or the LESSEE vacates the remainder of the Leased Premises, whichever
is later. If this Lease Agreement is not canceled pursuant to this paragraph 11, the CITY shall at
its expense make the necessary repairs to that part of the Leased Premises not affected by such
condemnation as rapidly as reasonably possible to restore the Leased Premises to as near the
condition which existed immediately prior to the taking as is reasonably possible. In the event
that any portion of the Building in which the Leased Premises are located or the Leased
Premises themselves are condemned, the CITY shall not be responsible to LESSEE for any
costs or damages related to LESSEE's use of Leased Premises or LESSEE's business.
3
city perks lease2005
Coffee Shop Lease
Library/Resource Genter
February 2005
11. ASSIGNMENT. 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, except with CITY's written
consent. 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 CI-CY, 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.
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. AL TERA TIONS.The LESSEE shall not make any alterations to the Leased Premises without the
prior writteA 'consent~ ef- 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 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 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.
14. MECHANIC'S LIEN: Should any mechanic's or other liens be filed against any portion of the
Leased 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 receipt of notice from the CITY. Failure to comply with the
provisions of this paragraph shall be grounds for the CITY to immediately terminate this Lease
Agreement.
15. SIGNS. The LESSEE shall have the right, at its own risk and expense, to place signs identifying
LESSEE's business within the Building in which the Leased Premises is located. CITY reserves
the right to determine size and location of all signs. Said signs shall not be erected without the
written prior approval of the CITY, which approval the CITY will not unreasonably withhold.
4
city perks lease2005
. ~
Coffee Shop Lease
Library/Resource Center
February 2005
LESSEE 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. The CITY reserves the right to remove all unapproved
signs at the expense of LESSEE. "
16. TERMINATION. Upon termination of this Lease Agreement, LESSEE shall deliver up the
Leased Premises to the CITY in as good a condition as said Leased Premises shall be in as of
the date of tendec of possession subject to ordinary wear, tear and decay, the LESSEE agreeing
not to leave the Leased Premises in an irregular or unkempt manner.
17. RULES AND REGULATIONS. 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.
18. ENTRY. During the ninety (90) days prior to the expiration of the term, the CITY or its agents
may exhibit the Leased Premises to prospective Lessees.
19. NOTICES. All notices,. consents, demands and requests which may be or are required to be
given by either party- oT 'the other, shall be in writing and sent by United States registered or
certified mail, with return receipt requested, addressed to the LESSEE at the Leased Premises
and to the CITY at 16200 Eagle Creek Avenue S.E., Prior Lake, MN 55372, or to such other
address as CITY may direct, in writing, in the future, with a copy to Suesan Lea Pace, City
Attorney, 600 Pillsbury Center South, 220 South Sixth Street, Minneapolis, MN 55402-4501.
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 written notice
given by said party to the other party in the manner herein above provided.
20. CLAIMS. The LESSEE will make no claim against the CITY for any loss of or damage to property
and/or the Leased Premises caused by theft, burglary, water, gas, electricity or other means.
LESSEE further agrees it will not make any claim against the CITY regardless of cause for loss
of profits.
21. FIRE REPAIR. In the event of damage to the Leased Premises by fire, the elements or other
casualty of whatever kind or nature, 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 damage renders the Leased Premises untenantable in part but LESSEE
continues to occupy them in part, the rent shall be reduced in the proportion that the unoccupied
portion of the Leased Premises bears to the occupied portion of the Leased Premises, until the
damage has been repaired. The CITY shall not be responsible for any loss of LESSEE's fixtures,
property or for any lost profit.
If the damage is not repaired by CITY within a reasonable time, or in any event, within one
hundred twenty (120) days, LESSEE shall thereupon have the right to terminate the Lease
Agreement by giving the CITY written notice of such termination.
5
city perks lease2005
--'~"._-_._."._-_._~._."'.__..._---"'......__...'"---
Coffee Shop Lease
Library/Resource Center
February 2005
22. QUIET ENJOYMENT, 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
except that LESSEE understands and agrees the use of the Building for the public purpose for
which it was constructed shall not constitute a breach of quiet peace and enjoyment of Leased
Premises. Upon expiration of the Lease term or earlier terminati9n of the Lease, LESSEE shall
surrender the Leased Premises in good condition and repair, except for reasonable wear and
tear.
23. RENEW AL TERM. Provided that LESSEE is not in default under the terms and conditions of this
Lease Agreement, the Lease term may be renewed, at the sole discretion of the CITY, for an
additional four-year term. The rental payments for the renewal term shall be as follows:
Year 1 $1 000 per month
Year 2 $1000 per month
Year 3 $1050 per month
Year 4 $1100 per month
24. HOLDING OVER. If LESSEE shall hold over the Leased Premises or any part thereof after the
expiration of)he"t~rm hereof, such holding over shall be construed only to be a tenancy from
month to montnsubj-ectto all of the covenants, conditions and obligations hereof except that the
rent shall be two hundred (2000/0) percent 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.
25. HOURS OF OPERATION OF LEASED PREMISES. LESSEE may only operate or have open for
business the Leased.Premises from 6am. to 8pm, Monday-Friday; 7:30am to 5pm on Saturdays;
and Sundays; or such times and dates that the Library and Resource Center is open to the
public, including times during which the City is sponsoring or has approved the' use of the
Building for a private event. LESSEE may not conduct private events in Leased Premises that
are not connected with an approved event in the Building, unless agreed to by the CITY in
writing.
26. NO VENDING MACHINES. LESSEE shall not install vending machines without the prior written
consent of the CITY. The CITY will not place, nor approve any party other than the LESSEE from
installing food or beverage vending machines in the lobby of the Building.
27. INDEPENDENT CONTRACTOR. It is agreed that nothing herein contained is intended or should
be construed in any manner as creating or establishing the relationship of co-partners between
the parties hereto or as constituting the LESSEE as an agent, representative or employee of the
CITY for any purpose or in any manner whatsoever. LESSEE is to be and shall remain an
independent contractor with respect to all services performed under this Lease Agreement.
LESSEE represents that it has, or will secure at its own expense, all personnel required in
performing services under this Lease Agreement. Any and all personnel of LESSEE or other
persons while engaged in the performance of any work or services required by LESSEE under
this Lease Agreement shall have no contractual relationship with the CITY and shall not be
considered employees of the CITY and any and all claims that mayor might arise under the
Workers' Compensation Act of the State of Minnesota on behalf of said personnel or other
persons v/hile so' engaged, and any and all claims whatsoever on behalf of any such person or
personnel arising out of employment or alleged employment including without limitation claims of
6
city perks lease200~
Coffee Shop Lease
Library/Resource Center
February 2005
discrimination against the LESSEE, its officers, agents or employees shall in no way be the
responsibility of the CITY; and LESSEE shall defend, indemnify and hold the CITY, its officers,
agents and employees harmless from any and all such' claims regardless of any determination of
any pertinent tribunal, agency, board, commission or court. Such personnel or other persons
shall not acquire nor be entitled to any compensation, rights or benefits of any kind whatsoever
from the CITY, including without limitation, tenure rights, medical and hospital care, sick and
vacation leave, Workers' Compensation, Unemployment Compensation, disability, severance pay
and PERA. The CITY shall not be bound by and the LESSEE's performance hereunder shall not
be conditioned upon any contract between the LESSEE and any other entity or party.
28. 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,
national origin, affectional preference or any other char'acteristic protected by local, state or
federal statutes, regulation or ordinance. 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, national origin, affectional preference or any other characteristic protected by
local, state or federal statutes, regulation or ordinance. 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.
29. 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 persons, 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.
30. 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 "B".
31. ENTIRE AGREEMENT. This Lease Agreement represents th~ entire and integrated agreement
between the parties hereto and supersedes all prior negotiations, representations or agreements,
either written or oral.
32. 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 ,t.,greement._
33. 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.
34. GOVERNING LAW / JURISDICTION. State of Minnesota (State) laws govern all questions and
interpretations concerning the validity and construction of this Lease Agreement.
35. 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.
7
city perks lease2005
Coffee Shop Lease
Library/Resource Center
February 2005
36. 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 - Location map of Leased Premises
Exhibit 8 - Equal Employment Opportunity Assurance
37. 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.
38. BINDING 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 CJTY.~"; 'c'
IN WITNESS WHEREOF, the parties hereto have caused this. Lease Agreement to be executed
the day and year first above written.
LESSOR:
City of Prior Lake
Frank Boyles, City Manager
LESSEE:
CITY PERKS, ~~-~
By: ~~~ C'Od
Dean Reeve:-
BY:
BY:
By:
n Aj)y.
Cl't?)
Jack G. Haugen, Mayor
8
city perks lease2C05
, _._--_.__..~..
Coffee Shop Lease
Library/Resource Center
February 2005
EXHIBIT "A"
(Location Map of Leased Premises)
city perks lease2005
9
'"". '"".....---..-.............-.. ~""--"----r-".' _...._..H_~.......~_......_.. '"
Coffee Shop Lease
Library/Resource Center
February 2005
EXHIBIT "B"
(Equal Employment Opportunity Assurance)
CITY PERKS, INC. 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, affectional preference or any other characteristic
protected by local, state or federal statutes, regulation or ordinance.
LESSEE:
CITY PER~ I~
ct;j~f-____ "
By: l,.' I ) /'
Dean Reev-e:--
Ct)(}
By:
!~\L tv,lM
Kelly Be~, \.tn
Dated:
10
city perks lease2005