Loading...
HomeMy WebLinkAbout5I - Premiere Dance Academy 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 CITY COUNCIL AGENDA REPORT MEETING DATE: AGENDA #: PREPARED BY: July 17, 2006 51 Kelly Meyer, Asst. to the City Manager AGENDA ITEM: CONSIDER APPROVAL OF AN ADDENDUM TO LEASE AGREEMENT FOR PREMIERE DANCE ACADEMY. DISCUSSION: Introduction The purpose of this report is to consider a lease addendum for Premiere Dance Academy that would extend their current lease on a month-to-month basis until such time that their new facility is ready for occupancy. Historv Premiere Dance Academy was awarded the operation of the City's dance program in 2003 when the City Council opted to privatize the program and requested bids. As part of the privatization, Premiere Dance entered into a three-year Lease Agreement for the use of the studio space within the Library Resource Center. Premiere Dance Academy has flourished - outgrowing the existing space. They had temporarily leased additional studio, but have had difficultly finding a leased space that would suit their needs long-term. Ultimately, Dawn Schulberg, the owner of Premiere Dance Academy, has determined that the best alternative for serving the long-term needs for the business is to construct a new building in the Downtown Prior Lake area. Current Circumstances Ms. Schulberg has begun the process for building her new facility by purchasing land, developing plans, and establishing financing. During the preparation for constructing the new facility, some petroleum contamination was found on the site. While Ms. Schulberg is working through those issues with the MPCA, the delays have affected her target date for moving into a new facility. The current lease term for the space within the Library Resource Center expires June 30,2006. Because the final occupancy date for the new facility is difficult to target, and rather than entering into a long-term lease, Ms. Schulberg has requested that the existing lease be extended on a month-to- month basis through December 31, 2007, or such other earlier termination date as requested in writing. ISSUES: Ms. Schulberg and Premiere Dance Academy have been both a very good tenant, and a good Downtown business. Currently, there is not another www.cityofpriorlake.com I\COUNCIL \.I\GNRPTS\2006\dance sMi(5hle'9'52l.W~eo96 fl~52.44 7.4245 FINANCIAL IMPACT: ALTERNATIVES: RECOMMENDED MOTION: business that is ready to assume the space immediately. There do not appear to be any significant issues with the request. It appears this is a good, no-cost opportunity for the City to assist a valuable Downtown business owner and to further help facilitate additional improvements in Downtown Prior Lake. The financial impact is a positive one. The City would continue to receive lease payments in the amount of $5427.34 per month until the lease is terminated. This lease payment is an extension of the rate paid during the final lease term. 1. Motion and Second authorizing the Mayor and City Manager to enter into the Addendum to Lease Agreement as part of the Consent Agenda. 2. Remove this item from the Consent Agenda for discussion. 1t.1cf ing Alternative #1. 1:\CQUNCIL\AGNRPTS\2006\dance studiO lease addendum 2006DOC ADDENDUM TO LEASE AGREEMENT THIS ADDENDUM TO LEASE AGREEMENT is made and entered into effective this 30th day of June, 2006 by and among the CITY OF PRIOR LAKE, MINNESOTA, a Minnesota municipal corporation (hereinafter referred to as "Lessor" or the "City"), and DAWN SCHULBERG d/b/a PREMIER DANCE ACADEMY, a Minnesota limited liability company (hereinafter referred to as "Lessee"). RECITALS WHEREAS, the City and Lessee entered into a Lease Agreement dated June 30, 2006 ("Lease") for that certain premises consisting of 4634 square feet located in the Prior Lake Library Resource Center building at 16210 Eagle Creek Avenue, Prior Lake Minnesota 55372 (the "Demised Premises"); and WHEREAS, the Lease term expires June 30, 2006; and WHEREAS, the Lessee is currently working on the development of a two-story commercial dance studio facility in Downtown Prior Lake; and WHEREAS, the completion is the construction of the new facility is still pending; and WHEREAS, the Lessee desires to extend the existing Lease Agreement on a month-to- month basis until construction of the new facility is complete. WHEREAS, the City desires to facilitate projects of this type that implement redevelopment efforts in our Downtown area as directed in the City's 2030 Vision and Strategic Plan; and NOW, THEREFORE, in consideration of the mutual covenants and promises hereinafter set forth, the sufficiency of which are hereby acknowledged, Lessor and Lessee do hereby agree to the terms and conditions set forth herein. AGREEMENT 1. Term. The current Lease term shall be extended on a month-by-month basis until December 31, 2007, or such other earlier termination as requested by the Lessee in writing. In the event that Lessee requires termination in advance of December 31, 2007, upon 30 days written notice to Lessor, Lessee may terminate the Lease Agreement. 2. Rent. The current Lease rental rate of $5427.34 shall be extended through the December 31, 2007 lease term. 3. All other terms of the Lease shall remain in full force and effect. ON: 174104 Ver: 5 1 IN WITNESS WHEREOF, the parties hereto have caused this Addendum to Lease Agreement to be executed the day and year first above written. Lessor: CITY OF PRIOR LAKE Lessee: PREMIER DANCE ACADEMY By: Jack G. Haugen, Mayor Dawn Schulberg By: Frank Boyles, City Manager ON: 174104 Ver: 5 2 City of Prior Lake, Minnesota LEASE AGREEMENT THIS LEASE AGREEMENT is made and entered into this 30th day of June, 2003, by and between the CITY OF PRIOR LAKE, MINNESOTA, a Minnesota municipal corporation (hereinafter referred to as "CITY", and DAWN SCHULBERG d/b/a PREMIERE DANCE ACADEMY, a Minnesota Limited Liability Company (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 4634 square feet (the specific location of the premises is as outlined and delineated on the attached Exhibit "A") (hereinafter referred to as "Leased Premises"), 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 three (3) years commencing on the 1 st day of July 2003, and terminating on the 30th day of June 2006. 3. USE OF PREMISES. The Leased Premises will be used by the LESSEE to operate the Prior Lake Dance Program. No additional use by the LESSEE or CITY is permitted without the written consent of the parties. The LESSEE will not be permitted to use any portion of the basement of the Building. Use of City Property: Equipment currently located within the Leased Premises, including but not limited to office furniture, reception chairs, coat racks, stereos, speakers, mirrors, curtains and dance bars (collectively hereinafter referred to as "Equipment") are the property of the CITY. The LESSEE may use the Equipment, but shall be responsible for replacement or repair of any damaged Equipment. Repair or replacement of any Equipment due to normal wear and tear shall be the responsibility of the CITY. The CITY may, at its sole discretion, replace or repair any Equipment that has expended its useful life. Inventory, such as shoes, props and costumes, are the property of the LESSEE. 4. RESPONSIBILITY OF LESSEE REGARDING LEASED PREMISES. The LESSEE is responsible for and shall pay a pro-rata share of the Library Resource Center operating expenses unless excepted therefrom in this Lease Agreement. For purposes of this Lease Agreement, the operating expenses for the Building in year 1 of the Lease term is deemed to be $32,671. The LESSEE's pro-rata share of the Library Resource Center operating costs for the Leased Premises is deemed to be 26% (32,671 x 26% = $8495). Operating costs include heating, cooling, sewer, water, and electricity. The pro-rata share of operating expenses shall be paid monthly with the rent payment due and is in addition to the monthly rent set forth in Paragraph 5 herein. The LESSEE may utilize the City Hall dumpster for disposal of refuse. Telephone, Internet or cable television service, and any additional services related to disposal of refuse, are the responsibility of the LESSEE. The amount of the operating expenses may be adjusted annually to reflect inflation and any need for additional services. The annual adjustment for operating expenses each year shall not exceed 10% of the operating expenses for the Building. The LESSEE shall be responsible for making nonstructural repairs to the Leased Premises (See Paragraph 8). Dance Studio Lease Library/Resource Center June 2003 The LESSEE shall be responsible for applicable taxes, insurance, all janitorial services, and any additional maintenance required over and above the services provided under the operating expenses for the Building. Janitorial services for the Leased Premises must be completed at a standard which is the same or better than provided for the remainder of the Building. Such determination shall be at the sole discretion of the CITY. 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 Four Thousand Two Hundred Fifty-Two and no/100 Dollars ($4252.00) plus the pro-rata share of operating expenses for the Leased Premises for the first year; Four Thousand Four Hundred Sixty-Four and no/100 Dollars ($4464.00) plus the pro-rata share of operating expenses for the Leased Premises for the second year; and Four Thousand Six Hundred Eighty-Eight and no/100 Dollars ($4688.00) plus the pro-rata share of operating expenses for the Leased Premises for the third year of the term of this Lease Agreement. Rent and operating expense 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 and operating expense 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~) the initial rent payment as security deposit for the Leased Premises, together with an Irrevocable Letter of Credit in the amount of $20,000. 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 pursuant to paragraph 12, notwithstanding that the City may have consented to the alternation. If the security deposit is insufficient to cover all costs of such repair, the Irrevocable Letter of Credit will be used for the balance of the cost of repairs. The security deposit and Irrevocable Letter of Credit may also be used to pay any remaining unpaid rents. 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 2 dance studio lease Dance Studio Lease Library/Resource Center June 2003 policy on the Building covers, without any rating surcharge, a wide range of uses. In the event, LESSEE's use of the Leased Premises or contents kept in the Leased Premises, causes 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. 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, employees or independent contractors 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, employees or independent contractors 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 but not limited to ceilings, windows, carpeted floors, all interior walls, and all doors and electrical fixtures, and will keep the Leased Premises in as good a condition as when turned over to LESSEE, reasonable wear and tear excepted. The LESSEE agrees to refurbish the wood floor within the Leased Premises on a biennial basis. For the purposes of this Lease Agreement, "refurbish" shall mean stripping, sanding and refinishing the wood dance floor. 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. 3 dance studio lease Dance Studio Lease Library/Resource Center June 2003 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 to litter any of the grounds or entries. Any activities associated with the Dance program, such as dance classes or practice, awards ceremonies, shoe sales, registration, class photographs, or similar events, must be contained within the Leased Premises. 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 of the Leased Premises. 10. 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 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. 11. 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. If LESSEE breaches any material provision in that certain contract between Dawn SChulberg, d/b/a Premiere Dance Academy and the City of Prior Lake dated July 1, 2003, and the CITY terminates said contract, the City may, at its option, also terminate this Lease Agreement. The provisions of Paragraph 5 shall apply if this Lease Agreement is terminated pursuant to termination of the contract for operating of the Prior Lake Dance Program. 12. ALTERATIONS. 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, 4 dance studio lease Dance Studio Lease Library/Resource Center June 2003 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 at the time of the approval. The LESSEE however, shall own any installed trade fixture installed by LESSEE, 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. 13. 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, and use the security deposit or Irrevocable Letter of Credit provided for in Paragraph 5 to satisfy any mechanic's liens. 14. SIGNS. The LESSE!; shall have the right, at its own risk and expense, to place signs within the Building in which the Leased Premises is located. CITY reserves the right to determine size, content 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. 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. 15. 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 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. 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. 16. 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. 17. 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. 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 5 dance studio lease Dance Studio Lease Library/Resource Center June 2003 mail, with return receipt requested, addressed to the LESSEE at the Leased Premise~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. 19. 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, except in cases of negligence by the CITY. LESSEE further agrees it will not make any claim against the CITY regardless of cause for loss of profits. 20. 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 and operating expenses 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 and operating expenses 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. 21. 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 public or private purpose for which is was constructed, shall not constitute a breach of quiet peace and enjoyment of Leased Premises. 22. RENEWAL TERM. Provided that LESSEE 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 three-year term. The rent during the renewal period shall be as follows: Year 1 of renewal term: $4924 Year 2 of renewal term: $5171 Year 3 of renewal term: $5430 23. HOLDING OVER. If LESSEE shall hold over the Leased Premises or any part thereof after the expiration of the term hereof, 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 be two hundred (200%) percent of the amount identified in Paragraph 5 herein plus the 6 dance studio lease Dance Studio Lease Library/Resource Center June 2003 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. HOURS OF OPERATION OF LEASED PREMISES. LESSEE shall provide CITY with a schedule of hours of operation for the Leased Premises. The schedule for hours of operation must be approved by CITY in writing, which approval the CITY will not unreasonably withhold. Any subsequent change in the hours of operation must have prior written consent of the CITY,which consent the CITY will not unreasonably withhold. LESSEE may not conduct private events in Leased Premises that are not events of the Prior Lake Dance Program unless agreed to by the CITY in writing. 25. VENDING MACHINES. At the request of the LESSEE, the CITY may install a vending machine within the LEASED PREMISES provided that installation is in compliance with other contractual obligations the CITY may have. 26. 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 while 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 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. 27. 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 characteristic 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 7 dance studio lease Dance Studio Lease Library/Resource Center June 2003 advertising, layoff or termination, rates of payor other forms of compensation, and selections for training, including apprenticeship. 28. 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. 29. 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 "C". 30. 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. 31. 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._ 32. 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. 33. GOVERNING LAW I JURISDICTION. State of Minnesota (State) laws govern all questions and interpretations concerning the validity and construction of this Lease Agreement. 34. 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. 35. 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 B - Equal Employment Opportunity Assurance Exhibit C - Contract for Operation of Prior Lake Dance Program 36. 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. 8 dance studio lease Dance Studio Lease Library/Resource Center June 2003 37. 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 CITY. 38. CONTRACT FOR OPERATION OF PRIOR LAKE DANCE PROGRAM. This Lease Agreement may be terminated by the CITY, at the sole option of the CITY, if the Contract for the operation of the Prior Lake Dance Program is breached by LESSEE and terminated by City. The Contract for Operation of the Prior Lake Dance Program is attached hereto as Exhibit C. IN WITNESS WHEREOF, the parties hereto have caused this Lease Agreement to be executed the day and year first above written. BY:_ LESSEE: :~a;c~ Dawn Schulberg, OHi'lev- BY: Ja~~ 9 dance studio lease Dance Studio Lease Library/Resource Center June 2003 EXHIBIT "A" (Location Map of Leased Premises) 10 dance studio lease Dance Studio Lease Library/Resource Center June 2003 EXHIBIT "B" (Equal Employment Opportunity Assurance) PREMIERE DANCE ACADEMY 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: PREMIERE DANCE ZEMY BY:~ ~ Dawn Schulberg, Owner Dated: 11 dance studio lease Dance Studio Lease Library/Resource Center June 2003 EXHIBIT "C" (Contract for Operation of the Prior lake Dance Program) 12 dance studio lease