Loading...
HomeMy WebLinkAbout7A - V.F.W. Parking Lot Lease Agreement . ,O~'?' NUMBER: PREPARED BY: SUBJECT: DATE: INTRODUCTION: BACKGROUND: DISCUSSION: 7 (a) KAY KUHLMANN, ASSISTANT CITY MANAGER CONSIDER APPROVAL OF LEASE AGREEMENT WITH DWAYNE ARNDT FOR VFW PARKING LOT JUNE 7, 1993 Approximately six months a90 VFW officials contacted the City regard1ng leasing the parking lot on Colorado Street. The VFW requested City assistance in leasing the lot for continued ~ublic use br residents. This agenda item 1S request1ng City Council consideration of entering into a lease arrangement to provide public parking \ on the Colorado Street parking lot. The VFW has had an ongoing base relationship with Dwayne Arndt the owner of the property on Colorado Street currently used for public parking. The VFW is in a financial situation where ther could use assistance in providing this park1ng facility for their customers and for other public uses in the area. The parking lot is currently signed as a municipal parking lot and has been used by business people in the area for many years, and is used by the City to provide a hub for park and recreation tours and activities. public parking Avenue city staff believes that there is benefit much the same as the municipal lot in downtown on the corner of Main and County Road 21. The lease agreement that the city is asked to consider is to provide, on an annual basis, a lease of the entire parking lot for public parking use. The lease agreement has been drafted and reviewed by City Attorney Kessel. The City would pro~ose that the term of the lease be for a per10d of twelve months and the Citr or the owner give each party sixty days not1ce to terminate the lease. 4629 Dakota St S.E., Prior Lake, Minnesota 55372 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLDYER RECOMMENDATION: ALTERNATIVES: ACTION REQUIRED: The cost of the lease has been proposed to be in a one year lump sum payment or in a monthly figure in an amount not to exceed $4,000 annually. The City would make the checks payable to Dwayne Arndt the owner of the parking lot. The VFW has volunteered to cover the cost of the insurance as part of their premium. The City would require a 'hold harmless' arrangement from VFW prior to signing this lease. The lease agreement has been submitted to the VFW Board for their review and to Mr. Arndt. The Citr has not received official notificatlon from Dwayne Arndt but would like to have the Council hold a discussion on this issue before any signatures are received from Mr. Arndt. This lease agreement would be pro rated for 1993 beginning in July of 1993 and concluding in December of 1993. The City of Prior Lake would give notice in October of its intent for continuing the lease for 1994. Kay Kuhlmann will be calling each city Council member to discuss this request prior to June 7. Staff would ask the Council to consider this lease a9reement to provide additional parking for bUSlness and public use in the downtown area. The cost for the lease on an annual basis would be not to exceed $4,000, the terms of the agreement are spelled out in the lease. The Council has the fOllowing alternatives to consider: 1. Approve the lease agreement as proposed and sign off on the agreement as soon as Dwayne Arndt has agreed to it. 2. continue this discussion date in order to information. later more until a receive 3. Deny the request at this time. A motion to approve the lease agreement for a cost not to exceed $4,000. LEASE AGREEMENT THIS AGREEMENT, made and entered into this , 1993, by and between day of (hereinafter referred to as "Landlord") and the City of Prior Lake, a municipal corporation organized and existing under the laws of the State of Minnesota (hereinafter referred to as "Tenant"). R E C I TAL S Landlord presently owns certain property located in the City of Prior Lake, County of Scott, Minnesota, as shown on Exhibit "A" attached hereto and made a part hereof. It is the intention and desire of the Landlord and Tenant to enter into a ~ease Agreement whereby Tenant will lease said property from Landlord upon the terms and conditions set forth in this Agreement. IT IS MUTUALLY AGREED: 1. Recitals. The foregoing Recitals are made a part of this Agreement. 2. Leased Premises. Landlord hereby leases to Tenant and Tenant rents of and from Landlord the property, subject to the terms and conditions of this Lease. 3. Term. The term of this Lease shall be for a period of ( years, commencing on the date hereof and terminating , both dates inclusive. Provided, however, that this Lease may be terminated at any time upon mutual written agreement of the parties. If the commencement date of the term hereof falls on a date other than the first day of a month, Tenant shall pay to Landlord on said date rental for the number of days remaining in the calendar month, including said first date computed at a daily rate of one-thirtieth (1/30) of the monthly rental hereinafter specified. "Lease year" shall mean the twelve (12) month period beginning on the first day of the term and each succeeding and consecutive twelve (12) month period thereafter. 4. Rent. Tenant shall pay to Landlord, payable at the address designated in this Lease for service of notice upon Landlord, or at such other place as Landlord may designate in writing to Tenant, as rent, exclusive of any other charge provided for to be paid by Tenant in this Lease, the following, payable in appropriate consecutive monthly installments, in advance, on the first day of each and every month throughout the term of this Lease: A. For each Lease year, the sum of $ per annum, payable at ($ ) Dollars per month. 5. Environmental Matters. Landlord represents and warrants that he/it has no knowledge of the presence or the release of any hazardous materials as defined under the State and Federal Environmental Protection Laws nor has Landlord received any notice of any such violations from any entity, including the Minnesota Pollution Control Agency and the Federal Environmental Protection Agency. 6. Use of Premises. Tenant shall use the premises as a municipal parking lot during the term of the Lease. 7. Real Estate Taxes and Assessments. Landlord shall pay all real estate taxes and all installments of special assessments, and any taxes in lieu thereof, which may be levied upon or assessed against the property during the term of this Lease. 8. Care of Leased Premises: Maintenance and Repairs. Landlord shall maintain the Leased Premises in as good condition and repair as they were at the commencement of the term of this Lease. Tenant shall maintain the Leased Premises in a clean and sanitary condition as its intended use as a municipal parking lot. 9. Eminent Domain. If the Leased Premises, or such portion thereof as to render the balance unsuitable for the purposes of Tenant as hereinabove set forth, is taken by condemnation or the right of eminent domain or by private sale in lieu thereof to the potential condemning authority, either party shall be entitled to terminate this Lease upon written notice to the other within thirty (30) days after Tenant has been deprived of possession by such taking or sale. 10. Assignment or Sublease. Tenant may assign or transfer this Lease, or sublease the whole or any part of the Leased Premises, without the prior written consent of the Landlord. - 2 - 11. Waiver of Subrogation. Each of Landlord and Tenant hereby releases the other, to the extent of its insurance coverage, from any and all liability for any loss or damage caused by fire or any of the extended coverage casualties or any other casualty insured against, even if such fire or other casualty shall be brought about by the fault or negligence of the other party, or any persons claiming under it, provided, however, that this release shall be in force and effect only with respect to loss or damage occurring during such time as releasor's policies of fire and extended coverage insurance shall contain a clause to the effect that this release shall not affect said policies or the right of the releasor to recover thereunder. Except as provided above, nothing in this Lease shall be deemed to release either party hereto from liability for damages resulting from the fault or negligence of said party or its agents, except to the extent limited by State and/or Federal laws limiting governmental liability. 12. Relationship of the Parties. Nothing contained in this Lease shall be deemed or constructed by the parties hereto or by a third party to create the relationship of principal and agent or of partnership or of joint venture or of any association whatsoever between Landlord and Tenant, it being expressly understood and agreed that neither the method of computation of rent nor any other provisions contained in this Lease nor any act or acts of the parties hereto shall be deemed to create any relationship between Landlord and Tenant other than the relationship of Landlord and Tenant. 13. Notices. All notices and communications of similar legal import from either Landlord or Tenant to the other, shall be in writing and shall be considered to have been duly given or served if sent by first class certified or registered mail, return receipt requested, postage prepaid, to the other party or parties at its address set forth below, or to such other address as such party may hereafter designate by written notice to the other party or parties: If to Landlord: - 3 - If to Tenant: City of Prior Lake 4629 Dakota Street S.E. Prior Lake, MN 55372 Attention: 14. Importance of Each Covenant. Each covenant and agreement on the part of one party is understood and agreed to constitute an essential part of the consideration for each covenant and agreement on the part of the other party. 15. Waiver. The receipt of rent by Landlord with knowledge of any breach of this Lease by Tenant or of any default on the part of Tenant in the observance or performance of any of the obligations or covenants of this Lease shall not be deemed to be a waiver of any provision of this Lease. Payment of rent by Tenant with knowledge of any breach of this Lease by Landlord of any default on the part of Landlord in the observance or performance of any of the obligations or covenants of this Lease shall not be deemed to be a waiver of any provisions of this Lease. No failure on the part of Landlord or Tenant, as the case may be, to enforce any obligation or covenant herein contained, nor any waiver of any right hereunder by Landlord or Tenant, as the case may be, unless in writing, shall discharge or invalidate such obligation or covenant or affect the right of Landlord or Tenant, as the case may be, to enforce the same in the event of any subsequent breach or default. 16. Invalidity. If any part of this Lease or any provision hereof shall be adjudicated to be void or invalid, then the remaining provisions hereof not specifically so adjudicated to be invalid, shall be executed without reference to the part or portion so adjudicated, insofar as such remaining provisions are capable of execution. 17. Governing Law. This Lease shall be subject to and governed by the laws of the State of Minnesota and all questions concerning the meaning and intention of the terms of this Lease and concerning the validity hereof and questions relating to performance hereunder shall be adjudicated and resolved in accordance with the laws of that State, notwithstanding the fact that one or more of the parties now is or may hereafter become a resident of a different state. - 4 - 18. Definition of Landlord and Tenant Joint and Several Liability. The words "Landlord" and "Tenant" used herein shall include the plural thereof, and the necessary changes required to make the provisions hereof apply to corporations, partnerships, associations, or men or women shall be construed as if made. If two or more parties are referred to collectively under one designation, the liability of each shall be joint and several. 19. Headings. The headings of the paragraphs and subparagraphs of this Lease are for convenience of reference only and do not form a part hereof and shall not be interpreted or construed to modify, limit or amplify such paragraphs and subparagraphs. 20. Parties in Interest. This Lease shall inure to the benefit of and be binding upon the heirs, executors, administrators, successors and assigns of Landlord. 21. Counterparts. This Lease may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same instrument. LANDLORD CITY OF PRIOR LAKE By Mayor By City Manager TENANT s: \shdata\16772G\grk\1 ease. agr - 5 -