HomeMy WebLinkAboutRock Creek Parking Lot Lease
LEASE AGREEMENT
THIS LEASE AGREEMENT ("Agreement") made and entered into this 1 st day of May, 2006,
by and between Rock Creek Designers and Builders, LLC (hereinafter collectively referred to
as "Tenant'? and the CITY OF PRIOR LAKE, a Minnesota municipal corporation (hereinafter
referred to as "Landlord').
RECITALS
Whereas, Landlord presently owns certain property located in the City of Prior Lake, County of
Scott, Minnesota legally described as Block 3, Lot 7, Town of Prior Lake (hereinafter "Leased
Premises", as identified in Exhibit A.
Whereas, it is the intention and desire of the Landlord and Tenant to enter into a Lease
Agreement whereby Tenant will lease ~~1~ _L_l!~~~g _Er~_r:Dises frQJrrJ._andI9I~LlJROrl_the t~rms_______
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 hereby rents of and
from Landlord the Leased Premises, subject to the terms and conditions of this
Agreement.
(3) Term. The term of this Agreement shall be for a period of five (5) years, eff~ctive the 1 st
day of May, 2006, and tel1'l1inating on the 30th day of April, 2011, both dates inclusive. If
Tenant intends to utilize the Leased Premises prior to May 1, 2006 in connection with the
construction on the adjacent real property, this Agreement shall start on the date of such
use; the termination date shall remain at April 30, 2006. Provided however, that this
Agreement may be terminated by the Landlord in the event of the sale of the Leased
Premises by providing six (6) months written notice to Tenant. This Agreement may be
renewed-in- one year-increments at the mutual- agreement of the. Landlord -andTenant.
(4) Rent. Tenant shall pay to Landlord, payable at the address designated in this 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 Agreement.
(a) For the lease month, the sum of One Thousand and no/100 Dollars ($1,000.00) per
month, payable on or before the 15th of each month. Landlord may, at its option,
increase the rent on each renewal, beginning April 1, 2011. Landlord shall notify
Tenant in writing of any increase not less than thirty (30) days prior to August 1 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. "Lea~e 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.
(5) Environmental Matters. Landlord represents and warrants that Landlord 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.
___ ____ _ _____._~L ...__. Tenant Use.. TenCID_tshalL~El.tb~ leased premisEl~_~s....a_p-9rking-'oLd!.lringJ.h...e ____
term of the Lease. Tenant shall have full use of the lot Monday through Friday from 7:30
a.m. to 6 p.m., and Saturdays from 8 a.m. to 12 p.m. (noon). During non-business hours
and holidays, the lot shall be available for use by the public.
6.2 Public Use. During the term of the lease, the Tenant shall reserve four (4)
parking stalls along Main Avenue for the use of the public. Such parking stalls shall be
signed as available to the public and limited to two (2) hour parking. Tenant is
responsible for posting the sign; Landlord is responsible for enforcing the two (2) hour
parking limit.
(7) Real Estate Taxes and Assessments. Landlord shall pay all real estate taxes as
applicable and all installments of special assessments, and any taxes in lieu thereof,
which may be levied upon or assessed against the Leased Premises during the term of
this Agreement.
(8) 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 aHhe conclusion
of this Agreement in as good condition and repair as existed at the commencement of
this Agreement. Tenant shall have the right to re-stripe and realign the parking spaces
for better efficiency subject to the approval of the City's Public Works Director.
(9) Assignment or Sublease. Tenant may not assign or transfer this Agreement, or
sublease the whole or any part of the Leased Premises, without the prior written consent
ofthe Landlord.
(10) Liability Insurance.
10.1 Tenant shall maintain liability insurance on the premises naming Landlords as
co-insureds in the amount of $600,000 during the term of this Agreement and shall hold
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the Landlord harmless from any claims anslng out of Tenant's use of the Leased
Premises. Tenant shall provide landlord with a copy of the insurance certificate. In no
case does City, by virtue of entering into this Agreement with 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.
10.2 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.
10.3 Nothing in this Agreement shall be deemed to release either party hereto from
liability for damages resulting from the fault or negligence of said party or its agents,
-- - __e~j;~p-t lh.at JO_OQ fl'ient does_~ityJMa_iY_e_.the__statutOIY-_R(QtecliQns_andJimjtation.s_p.rovided
for in Minnesota Statutes Chapter 466 or any other State and/or Federal laws limiting
governmental liability.
(11) Relationship of the Parties. Nothing contained in this Agreement 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 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.
(12) 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:
Frank Boyles, City Manager
City of Prior Lake
16676 Fish Point Road
Prior Lake, MN 55372
If to Tenant:
Dan Schaefer
Rock Creek Designers and Builders, LLC.
16817 Duluth Avenue
Prior Lake, MN 55372
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(13) 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.
(14) Waiver. The receipt of rent by Landlord with knowledge of any breach of this Agreement
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 Agreement shall not be deemed to be a waiver
of any provision of this Agreement. Payment of rent by Tenant with knowledge of any
breach of this Agreement by Landlord of any default on the part of Landlord in the
observance or performance of any of the obligations or covenants of this Agreement
shall not be deemed to be a waiver of any provisions of this Agreement. No failure on the
part of any Landlord or Tenant, as the case may be, to enforce any obli9ations 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
__ ~ __ __~__ __~a!:!l~Jn~ t~h~_~Yf3ot()t ~J!y_ ~lJbseq~~I}LQr~acb _QLQefault . .~ _ _.. _ ___~
(15) Invaliditv. If any part of this Agreement 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.
(16) Governina Law. This 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 Agreement and concerning the validity hereof and questions relating to
performance hereunder shall be adjudicated and resolved in accordance with the laws of
that State.
(17) 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.
(18) Headinas. The headings of the paragraphs and subparagraphs of this 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.
(19) Parties in Interest. This Agreement shall inure to the benefit of and be binding upon the
heirs, executors, administrators, successors and assigns of Landlord and Tenant.
(20) Counterparts. This 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.
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TENANT:
----.----_.._~-._-.
Dan Schaefer, resident
Rock Creek Designers and Builders, LLC
LANDLORD:
CITY OF PRIOR LAKE
ON: 267376
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EXHIBIT "B"
Well Disclosure Certificate
1:\Agreements\Purchase Agreements\PA - Rock Creek 2.0001 0