HomeMy WebLinkAboutCorrespondence&Lease Agreement
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April, 2000
LEASE AGREEMENT
THIS AGREEMENT made and entered into this day of April, 2000, by and between
DWANE ARNDT and MERLIN ARNDT (hereinafter collectively referred to as "Landlord') and
the CITY OF PRIOR LAKE, a Minnesota municipal corporation (hereinafter referred to as
'Tenant').
RECITALS
Whereas, Landlord presently owns certain property located in the City of Prior Lake, County of
Scott, Minnesota legally described as Lots 6, 7, 8 and 9, Block 15, Town of Prior Lake
(hereinafter "Leased Premises'').
Whereas, it is the intention and desire of the Landlord and Tenant to enter into a Lease
Agreement whereby Tenant will lease said Lease Premises 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.
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(2) Leased Premises. Landlord hereby leases to Tenant and Tenant hereby rents of and
from Landlord the Lease Premises, subject to the terms and conditions. of this Lease
Agreement.
(3) Term. The term of this Lease Agreement shall be for a period of thirty-six (36) months,
effective the first day of May, 2000 and terminating on the 30th day of April, 2003, both
dates inclusive. Provided however, that this Lease Agreement may be terminated by
either party by providing thirty (30) days written notice to the other party.
(4) Rent. Tenant shall pay to Landlord, payable at the address designated in this Lease
Agreement 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.
(a) For the lease year, the sum of $3,200.00 per anr-lum, payable on or before May 1 st
of that year. Landlord may, at its option, increase the rent on each May 1 st,
beginning May 1, 2001 by an amount equal to any increase in real estate taxes not
including any assessments of any nature, against the Lease Premises over and
above the amounts due and payable in 2000. Notwithstanding the foregoing, in no
event shall any increase exceed fifteen (15%) percent of the previous year's rent.
Landlord shall notify Tenant in writing of any increase not less than thirty (30) days
prior to May 1 st of the year of the increase.
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(b) If the termination date of the Lease 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.
(6) Environmental Matters. Landlord represents and warrants that Landlordt 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.
(7) Use of Premises. Tenant shall use the leased premises as a municipal parking lot
during the term of the Lease.
(8) 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 Lease Premises during the term of this Lease.
(9) Care of Leased Premises; Maintenance and Repairs. Tenant shall maintain the
Leased Premises in a clean and sanitary condition as its intended use as a private
parking lot and shall be responsible to return the premises to Landlord at the conclusion
of this Lease in as good condition and repair as existed at the commencement of this
Lease.
(10) 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.
(11) 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. However, Tenant will remain liable to Landlord for any damage caused to the
Leased Premises, or any personal injury or death occurring thereon during the period of
this Lease. Provided, further, however, if Tenant provides Landlord evidence that
assignee is providing for equal insurance coverage as required of Tenant by this
Agreement, then Tenant shall be released from such liability.
(12) Liability Insurance. Tenant shall maintain liability insurance on the premises naming
Landlords as co-insureds in the amount of $600,000 during the term of this Lease and
shall hold the Landlord harmless from any claims arising out of Tenant's use of the
Leased Premises. Tenant shall provide Landlord with a copy of the insurance certificate.
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In no case does Tenant waive the protections and statutory limitations provided by
Minnesota Statutes Chapter 466. Landlord shall maintain liability insurance on the
Leased Premises in an amount not less than $600,000 naming Tenant as additional
insured. This requirement will be met by the VFW Club naming the City of Prior Lake as
a co-insured under its policy which provides $1,000,000 liability coverage.
The Landlord and Tenant each 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.
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 that in
no event does Tenant waive the statutory protections and limitations provided for in
Minnesota Statutes Chapter 466 or any other State and/or Federal laws limiting
governmental liability.
(13) 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 shall be expressly understood and agreed that neither the
method of computation of rent nor any other provisions contained in this Lease
Agreement 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.
(14) 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:
Dwane Arndt
15822 Candy Cove Trail S.E.
Prior Lake, MN 55372
Merlin Arndt
603 - 7th Street N.E.
Grand Rapids, MN 55744
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If to Tenant:
City of Prior Lake
16200 Eagle Creek Ave. S.E.
Prior Lake, MN 55372
Attn: City Manager
(15) 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.
(16) 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 Agreement shall not be
deemed to be a waiver of any provisions of this Lease. No failure on the part of any
Landlord or Tenant, as the case may be, to enforce any obligations or covenant herein
contained, or 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.
(17) Invalidity. If any part of this Lease or any provision hereof shall be adjudicated by a
Court of competent jurisdiction 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.
(18) Governing law. This Lease Agreement 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.
(19) Definition of landlord and Tenant Joint and Several Liability. The word "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.
(20) Headings. The headings of the paragraphs and subparagraphs of this Lease Agreement
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.
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(21) Parties in Interest. This Lease Agreement shall inure to the benefit of and be binding
upon the heirs, executors, administrators, successors and assigns of Landlord and
Tenant.
(22) Counterparts. This Lease Agreement 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:
Dwane Arndt
Merlin Arndt
TENANT:
CITY OF PRIOR LAKE
Wesley M. Mader, Mayor
Frank Boyles, City Manager
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