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HomeMy WebLinkAbout6J - Parking Lease with Holy Trinity MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: ISSUES: CITY COUNCIL AG January 16, 2007 6J ~ Frank Boyles, City Manager CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE A STANDARDIZED LEASE AGREEMENT WITH THE HOLY TRINITY UNITED METHODIST CHURCH FOR CITY EMPLOYEE PARKING Introduction The purpose of this agenda item is to request that the City Council approve a three-year lease agreement with Holy Trinity United Methodist Church to provide 45 parking stalls for city employees. Historv Some years ago, the city conducted a downtown parking study. The study indicated that at build out, the City was expected to have a deficit of 1,000 parking stalls in the downtown area. In an effort to provide for additional parking, the city has installed angle parking on Main Avenue, purchased the 65-stall park-and-ride lot on Pleasant and made it available for public parking, and constructed a 26-stall parking lot next to the new police station. Current Circumstances The above steps, while in the right direction, fall well short of the ultimate goal. Given that the Rock Creek building will be.completed this year, additional parking will be needed downtown. During the construction of the new city hall, contractors used the Holy Trinity United Methodist Church parking lot. We have worked with Pastor Ron Nicholas to develop a three-year lease (which can be extended an additional three years) that will allow city employees to park in this lot. The agreement calls for the use of up to 45 stalls on the western side of the parking lot. The City would sign the lot to show stalls reserved for the church and those for use weekdays by city employees. In exchange, the City would sweep the lot in the summer, plow the lot (excluding sidewalks) in the winter, crack seal the lot in 2007 and seal coat the lot in 2008. There would be no monthJy rental fee. The church saves the plowing, sealcoating and sealing costs. The City would pay less for these services than the church because of economies of scale. There are provisions in the lease which would require employee vehicles to relocate in the event of a funeral. The pastor has indicated that funerals are seldom held at this church. The agreement provides that the church will give 48 hours written notice of a funeral so the City can make alternate parking arrangements. While this is not an ideal situation, I believe it is workable. www.cityofpriorlake.com 1:\COUNCIL\AGNRPTS\2007\011607 ~fi~ ~~i.~7?9~ep~ 952.447.4245 FINANCIAL IMPACT: ALTERNATIVES: RECOMMENDED MOTION: The main beneficiary of this lease is downtown business owners and customers. We will publicize this notion to encourage public use of the 26 stalls in the parking lot east of the police station. The anticipated costs to the City are for signage and the incremental costs of sweeping, plowing, seal coating and striping. 1. Adopt a resolution authorizing execution of the lease agreement. 2. Direct the staff to provide additional information. Alternative #1. 1:\COUNCIL\AGNRPTS\2007\011607 Church Parking Lot LeaseDOC 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 RESOLUTION 07 -xxx A RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO ENTER INTO A lEASE AGREEMENT WITH HOLY TRINITY UNITED METHODIST CHURCH FOR EMPLOYEE PARKING WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, Motion By: Second By: The City Council has completed a parking study; and The parking study reveals that additional parking stalls are needed to serve the downtown area; and The City has constructed a 26-stalllot next to the police station for city employee parking; and The Holy Trinity United Methodist Church parking lot contains 45 stalls and is largely unused during the normal business day; and By leasing the church parking lot for use by city employees, the city can provide 26 more parking stalls for downtown usage; and WHEREAS, The City and Church have reached an agreement on a lease. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCil OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The Mayor and City Manager are hereby authorized to execute the City's Standardized Lease Agreement for 45 stalls in the church parking lot for City employee use. PASSED AND ADOPTED THIS 16th DAY OF JANUARY, 2006. YES NO Haugen Haugen Erickson Erickson Hedberg Hedbera LeMair LeMair Millar Millar Frank Boyles, City Manager I\COUNCI L \RESOLUTI\ADMINRES\2007\011607 ChurdfJNH<,~\1Y.~fJQ.~o:om Phone 952.447.9800 / Fax 952.447.4245 Holy Trinity United Methodist Church Parking Lot January 2007 Modified standard lease agreement City of Prior Lake, Minnesota LEASE AGREEMENT THIS lEASE AGREEMENT is made and entered into this 16th day of January, 2007, by and between the CITY OF PRIOR LAKE, MINNESOTA, a Minnesota municipal corporation (hereinafter referred to as "CITY"), and HOLY TRINITY UNITED METHODIST CHURCH, a Minnesota corporation (hereinafter referred to as the "CHURCH"). In consideration of the mutual promises, covenants and consideration set forth herein, the sufficiency of which are not disputed, the CITY and CHURCH do hereby agree as follows: 1. DESCRIPTION OF THE PREMISES. CHURCH does hereby lease to CITY and CITY does hereby lease from CHURCH a portion of the CHURCH's parking lot, said portion located at 16150 Arcadia Avenue S.E., Prior lake, MN, consisting of 45 parking spaces at the center and western-most portion of the CHURCH's parking lot. The specific location of the premises is depicted and delineated on Exhibit "A" which is incorporated herein as if fully set out (hereinafter referred to as "Leased Premises"). 2. TERM. This Lease Agreement shall be for a term of three (3) years commencing on the 17th day of January 2007 and terminating on the 16th day of January 2010. 3. USE OF PREMISES. The Leased Premises shall be used by CITY solely for parking of personal vehicles of city employees during the hours of 6 am to 8 pm, Monday through Friday. The use of the leased Premises shall be in compliance with all applicable federal, state and local laws, statutes, ordinances and governmental rules and regulations. The eastern and southern-most rows of the parking lot shall be reserved exclusively for CHURCH parking at all time and will be signed as such. In the event of a funeral, the CHURCH shall give the CITY a minimum of 48 hours to make alternate parking arrangements. 4. CONSIDERATION. In lieu of the CITY paying the CHURCH a monthly fee to lease a portion of the CHURCH's parking lot for city employee vehicle parking, the CITY agrees to undertake on behalf of the CHURCH the following activities: . The CITY shall maintain and repair the leased Premises in as good a condition as when it received it from CHURCH, normal wear and tear excepted. . In 2007, CITY shall crack seal the Leased Premises. . In 2008, CITY shall seal coat and stripe Leased Premises. . During the term of the lease, CITY shall provide snow and ice control to the parking lot, excluding stairs and sidewalks, to the same standard and with the same frequency as the CITY provides to the remainder of the downtown area. 5. CITY INSTALLED SIGNAGE. The CITY shall have the right, at its own risk and expense, to place signs within the Leased Premises. CHURCH reserves the right to approve the design and location of all signs. Said signs shall not be erected without the written prior approval of the CHURCH, which approval the CHURCH will not unreasonable withhold. CITY agrees to maintain the sign(s) in good repair, to remove 1:lAgreementslFarmslLEASE - Methodist Church Parking Lot 0107.DOC 1 Holy Trinity United Methodist Church Parking Lot January 2007 Modified standard lease agreement such sign(s)at the end of the term or any extended term of this Lease. Failure of CHURCH to approve the design or location of signage proposed by CITY shall be grounds for CITY to terminate this Lease; in which case all rents paid to CHURCH shall be refunded to CITY. 6. RESPONSIBILITY OF CHURCH REGARDING LEASED PREMISES. The CHURCH shall be responsible for making any normal repairs and maintenance to the Leased Premises not contemplated in paragraph 4,6 and 7. The CHURCH shall pay any and all insurance which CHURCH desires to insure its own property which is located and situated on the Leased Premises. The CHURCH shall be responsible for applicable taxes. The CHURCH shall, at its own expense, keep in good order, safe condition and repair, the Leased Premises (including, but not limited to, parking lot lighting, bituminous repair, and landscaping), except where repairs to the structural parts are required due to the fault or negligence of the CITY, its employees or invitees, in which case the CITY shall be responsible for reimbursing the CHURCH for the costs of such repairs. 7. INSURANCE. The CHURCH shall maintain in full force and effect during the term hereof, its policy of public liability insurance consistent with the coverage that is provided for the remainder of the parking lot. CITY shall be responsible for the payment of any and all other insurance which it desires. The CITY agrees to keep the Leased Premises in a clean and orderly condition and will neither do nor permit to be done therein anything which CITY knows to be in violation of insurance policies on the Leased Premises or that is contrary to any State or local law, ordinance or regulation thereof. 8. APPEARANCE AND ACCESS. CITY, to the extent obligated herein, and CHURCH mutually agree to keep the grounds and the Leased Premises in a condition of good repair and appearance as their respective responsibilities and rights require. 9. ASSIGNMENT. The CITY shall not have the right to assign its interest in this Lease Agreement or to sublet the Leased Premises, or any part thereof. 10. BREACH OF LEASE TERMS. If the CITY or CHURCH shall default hereunder and such default shall continue for a period of fifteen (15) days after written notice from the other of such default, then it shall be lawful for the CITY or CHURCH to terminate this Lease Agreement; provided that if the default be of such a nature that it may require more than fifteen (15) days to cure, the period to cure may be extended with written permission of the violated party. Said time to cure default may be extended for such period of time as specified by the written notice to CITY. The CITY shall cure any default with due diligence and within the time period provided herein. 11. ALTERATIONS. Except as provided in paragraph 4 herein, the CITY shall not make any alternations to the LEASED Premises without the prior written consent of the CHURCH. The CHURCH shall not make any alterations to the Leased Premises without prior written notification to the CITY. 1:\AgreementsIFormsILEASE - Methodist Church Parking Lot 0107.DOC 2 Methodist Church Parking Lot January 2007 Modified standard lease agreement If the CITY shall desire to make any such alterations, an accurate description shall first be submitted to and approved by the CHURCH and shall be done by the CITY at its own expense. Approval shall not be unreasonable withheld. CITY agrees that all such work shall be done in a good, workmanship-like manner, and in conformance with applicable building codes, and that no liens shall attach to the Leased Premises by reason thereof. The CITY shall and will in each instance save the CHURCH and said Leased Premises forever harmless and free of all costs, damages, losses and liabilities of every kind and character which may be claimed, asserted or charged, and will preserve and hold the CHURCH and said Leased Premises forever free and clear from liens for labor and material furnished. Any such alterations shall become the property of the CHURCH as soon as they are affixed to the Leased Premises and all right, title and interest therein of the CITY shall immediately cease unless otherwise stated in writing at the time of the approval. The CITY, however, shall own any installed signage, and shall have the right to remove such signage at the expiration or termination of this Lease Agreement, so long as the Leased Premises is restored to its original condition. Any alterations to Leased Premises shall be restored to their original condition at the termination or expiration of this Lease Agreement and subject to the provisions provided in paragraph 4 herein. 12. MECHANIC'S LIEN. Should any mechanic's or other liens be filed against any portion of the Leased Premises by reason of CITY'S acts or omissions or because of a claim against CITY, CITY shall cause the same to be canceled and discharged of record by bond or otherwise within ten (10) days after receipt of notice from the CHURCH. Failure to comply with the provisions of this paragraph shall be grounds for the CHURCH to immediately terminate this Lease Agreement. 13. TERMINATION. Upon termination of this Lease Agreement, CITY shall deliver up the Leased Premises to the CHURCH in as good a condition as said Leased Premises shall be in as of the date of tender of possession subject to ordinary wear, tear and decay, the CITY agreeing not to leave the Leased Premises in an irregular or unkempt manner. Any alterations to Leased Premises shall be restored to their original condition at the termination or expiration of this Lease Agreement and subject to the provisions provided in Paragraph 4 herein. 14. NOTICES. All notices, consents, demands and requests which may be or are required to be given by either party of the other, shall be in writing and sent by United States registered or certified mail, with return receipt requested, addressed to the CHURCH at 16150 Arcadia Avenue, Prior Lake, MN, 55372, Attention: ; and to the CITY at 4646 Dakota Street SE, Prior Lake, MN 55372, Attention: City Manager. The date which said registered or certified mail is mailed by the CHURCH shall be conclusively deemed to be the date on which a notice, consent, demand or request is given or made. The above address of a party may be changed at any time, or from time to time, by written notice given by said party to the other party in the manner herein above provided. 15. RENEWAL TERM. Provided that CITY is not in default under the terms and conditions of this Lease Agreement, the Lease term may be renewed by mutual agreement of both parties for an additional three-year term. 1:\AgreementsIFormsILEASE - Methodist Church Parking Lot 0107.DOC 3 Methodist Church Parking Lot January 2007 Modified standard lease agreement 16. HOURS OF OPERATION OF LEASED PREMISES. CITY shall utilize the Leased Premises only during the hours of 6 am to 8 pm, Monday through Friday, except during the instances of extreme weather where it may be necessary to utilize the Leased Premises outside the normal business hours. In no instance shall the Leased Premises be operated during the weekend, except with express written consent of the CHURCH. 17. 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. 18. 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. 19. 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. 20. GOVERNING LAW I JURISDICTION. State of Minnesota (State) laws govern all questions and interpretations concerning the validity and construction of this Lease Agreement. 21. 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. 22. 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: a. Exhibit A - Map Delineating Leased Premises and Depicting Portion Thereof CITY Will Use For Employee Parking. 1:\AgreementsIFormsILEASE - Methodist Church Parking Lot 0107.DOC 4 Holy Trinity United Methodist Church Parking Lot January 2007 Modified standard lease agreement IN WITNESS WHEREOF, the parties hereto have caused this Lease Agreement to be executed the day and year first above written. CHURCH: Holy Trinity United Methodist Church CITY: City of Prior Lake By: By: Jack G. Haugen, Mayor Its: Frank Boyles, City Manager 1:\AgreementsIForms\LEASE . Methodist Church Parking Lot 01 07.DOC 5 Methodist Church Parking Lot January 2007 Modified standard lease agreement EXHIBIT "A" Map Delineating Leased Premises and Depicting Portion Thereof CITY Will Use For Employee Parking 1:\AgreementsIFormsILEASE - Methodist Church Parking Lot 0107.DOC 6