90-915 Please return copy to: � D ( �� A'�� , � Council File � �(� '9/J'r
Rea� Estate Division R ! IV r�
218 City Hall Green Sheet ,� �d�
(DN) (InterstateBonding) RESOLUTION
CITY F SAINT PAUL, MINNESOTA
Presented By ` , `
�
Referred To ` Committee: Date
WHEREAS , since 1982 , Interstate Bonding has leased, through
Lease Agreement FMS/3, 50�J square feet of office space on the
second floor of the City Hall Annex; and
WHEREAS, said Lease Agreement FMS/3 expired on February 28 ,
1987 , while the lease continued on a month-to-month basis with
the same terms and conditions and at the same rental rate
negotiated in 1982 ; and
WHEREAS , the market value of the leased premises has
continued to escalate during the eight years this lease has been
in effect;
NOW THEREFORE BE IT RESOLVED, that the proper City officials
are hereby authorized and directed to execute a new lease
agreement with Interstate Bonding reflecting the current market
value of the leased premises.
I
I
Yeas Navs Absent Requested by Department of:
imon �_
°�' � Finance & Mana�ement Services
o r,�
aune ee �� ��:X.l.' � ���-"'� ---
e an �_
i son -� BY� � � Director �
,. � �
>-��,7�� `\�
Adopted by Council: Date MAY 3 1 1990 Form Ap ved by City Attorney y��
,� �
Adoption Certified by Council Secretary gy� �r
�' l�a-jU'
BY� Approved by Mayor for Submission to
Approved by ayor: D�te JUN �. ���Q Council ��
/ f / ��� /
' B .�„l:Y��.[�k��/ BY'
Y�
���54�� !UN - 91990
. , ��y° ���
CITY OF SAINT PAUL
REAL PROPERTY LEASE AGREEMENT
ctn oi
Revised 3/5/90 ��� �
� 's
Authority (C.F. or A.,O. ) + "t o
LEASE NO. • �
�
i�s•
, FINANCE DEPT. LEASE N�. FMS/3
DATE: � Ma�ch 1, 1990
Y- -��=-� � CITY OF SAINT PAUL
LESSOR: Y -
�7�� �RBAL BSTATS
CITX.'=� �SAINT B�OL �gp�� AGREffi�ENT
,. �-�: �
DEPARTMENT OF FINANCE & d9ANAGEMENT S�,ICES
LESSEE:
.::<;,
Inter�tate B y n ,��"
15 West Fourth�i Street " ��
v��
Saint Paul, MN 55102
(1) Leased Premises. The LESSOR, in cons:ideration of �yment
of the Basic Rent and Additional Rent hereinaf��r specif' to be'�aid
by the LESSEE, and the covenants and agreements hexein Co�ined, do�s
hereby lease, demise and let unto LESSEE the following xpremises,
hereinafter referred to as the "Leased Premises":
Approximately five hundred (SH0) square feet of of�ice space, as
shown in Exhibit "A", attached hereto and made a p�rt hereof,
located on the first floor of the City Hall Annex at 15 West
Fourth Street in Saint Paul, Minnesota.
(2) Term of Lease. This lease shall be in effect for a term
commencing and ending on the dates indicated below, unless terminated
earlier by the LESSOR as provided herein.
Term (Months/Years) Commencing Date Ending Date
2 Years March 1, 1998 � �February 28, 1992
1
. ��o-y�s
(3) Use of Premises. The premises shall be used and occupied by
LESSEE for the following purpose:
Operation of the LESSEE's business as bail bondsmen
and for no other purpose without the prior written consent of LESSOR.
(4) Basic Rent. Rent shall be paid by the LESSEE in advance, on
the first day of the term of the lease and on the first day of each
and every payment period thereafter as indicated in the Payment
Schedule below:
Total Basic Rent Payment Schedule
During Each Year (Commencing Date - Monthly/Annually - $ per Period)
$6 ,080.00 March 1, 1990 Monthly $5�0.0A
$6 ,5B0.fdH March l, 1991 Monthly $541.67
LESSEE shall make all payments of Basic Rent and Additional Rent to
LESSOR at the following address:
218 City Hall
The applicable account number for City Finance Accounting Code is:
168-11050-68B1-0BH
(5) Additional Rent. Costs which the LESSEE shall pay as addi-
tional rent shall include but not be limited to the expense of con-
struction or demolition of private office walls, HVAC modifications,
electrical modifications, lighting modifications, painting, doors and
hardware due to installation of fixed partitions or major office
reconfigurations or other special leasehold improvements or services.
(6) Taxes. LESSEE shall be responsible for and pay all taxes and
assessments against the Leased Premises, except that LESSEE may at its
own expense contest and challenge the imposition or amount of any such
tax or assessment in accordance with law; provided, however, that in
the event this Lease is terminated by either party, LESSOR may at its
option require the LESSEE to pay such contested taxes pending appeal,
to place in escrow a sum sufficient to pay said taxes, or take other
action which will remove said contested taxes as an encumbrance to
title or as an exception to the transferability of marketable title to
the Leased Premises. .
(7) Right of Entry• At all times during the term of this lease,
the LESSOR shall have the right, by itself, its agents and employees,
to enter into and upon the Leased Premises during reasonable business
hours for the purpose of examining and inspecting the same.
2
� .� � �9o-�is
(8) LESSEE'S Insurance. LESSEE shall maintain during the term of
this lease and upon the Leased Premises certain insurance coverage
which is described as follows:
(a) WORKERS ' COMPENSATION INSURANCE with coverage not less than
the statutory limits and EMPLOYERS' LIABILITY INSURANCE with
limits of not less than:
$1B6,gBB PER ACCIDENT
(b) COMPREHENSIVE GENERAL LIABILITY insuzance including blanket
contractual liability coverage and personal liability
coverage with a combined single limit of not less than:
$600,A00 PER OCCURRENCE
such insurance shall : (1) name the City of Saint Paul, its
elected and appointed officers, employees and agents as
additional insureds; (2) be primary with respect to LESSOR' S
insurance or self-insurance program; (3) contain a standard
cross liability endorsement; (4) not exclude explosion,
collapse and underground property damage; and (5) be written
on an "Occurrence" Form policy basis.
(c) PROPERTY INSURANCE. LESSEE shall be responsible for insur-
ance or self insurance of its own property.
(d) The policies required in Paragraphs 8 (a) and (b) shall name
LESSOR as an insured, and shall be endorsed to indicate that
the insurer cannot cancel or change the insurance without
first giving the LESSOR 30 days ' prior written notice. The
policies shall be endorsed to indicate that the coverage
shall not be invalid due to any act or omission on the part
of the LESSOR.
(e) The insurance shall be placed with responsible insurance
companies authorized and licensed to do business in the
State of Minnesota and approved by LESSOR, and copies of the
policies shall be delivered to LESSOR on the date of LESSOR'S
execution of this agreement. If such policies are not
delivered to the LESSOR as provided, the LESSOR may at its
option terminate the Lease or place the insurance itself and
bill the LESSEE for the cost of coverage as Additional Rent.
(f) If for any reason any of the insurance hereunder is void, the
LESSEE is responsible to the LESSOR for the total amount of
its uninsured loss.
3
� , �- yo_y�s
(9) Cancellation or ?eraination. This lease shall be subject to
cancellation and termination by LESSOR at any time during the term
hereof by giving the LESSEE notice in writing at ninety (90) days ,
(thirty ( 30) days f or leases with a term of one ( 1 ) year or less or
any month-to-month tenancies ) in advance of the date when such
termination shall become effective. In the event of such termination
any unearned rental paid by the LESSEE shall be returned to LESSEE
without interest .
(10) Notice. All notices herein provided to be given , or which
may be given by either party to the other , shall be deemed to have
been fully given when served personally on LESSOR or LESSEE, or when
made in writing and deposited in the United States Mail, certified and
postage prepaid, and addressed to the LESSEE at the address stated on
page ( 1 ) and to the LESSOR at the Division of Valuations , Real Estate
Section , 218 City Hall , Saint Paul , Minnesota 55102. The address to
which the notice shall be mailed may be changed by written notice
given by either party to the other. Nothing herein shall preclude the
giving of such address change notice by personal service .
( 11 ) Assignnent and Subletting. LESSEE shall not assign or
sublet this Lease without the written consent of the LESSOR, which
consent must be obtained prior to the execution of any agreement to
sublease the Leased Premises .
(12) LESSOg's I�iaintenance and Bepair Besponsibilities LESSOR
agrees to furnish such heat , electricity , water , sewer air
conditioning and elevator services to the Leased Premises as are
reasonably necessary for the comfortable use and occupation of the
Leased Premises during all normal business hours . LESSOR shall keep
the building in which the Leased Premises are situated in good order
and the exterior of said building free from all refuse, shall keep the
sidewalks free from snow, ice and all obstructions , and shall promptly
and reasonably remove all garbage and refuse of any kind from the
premises during the term of this lease. LESSOR shall furnish elevator
service and other access to the Leased Premises during normal business
hours , 6 : 30 A.M. to 5 : 30 P.M. Monday through Friday. LESSOR shall
acquire and maintain property insurance coverage for the Leased Pre-
mises and contents therein. LESSOR shall aaintain , repair, or replace
all structural menbers , walls , footings , roofs , floors , doorwaps ,
nechanical systems , electrical systems , heating, ventilating and air
conditioning systems , elevators , utility metering equipment , wall
surfaces , floor coverings , ceilings , light bulbs and lighting fixtures
on the Leased Premises . All maintenance , repairs , and replacements
shall be made promptly and in good and workmanlike manner so that
defective parts of the Leased Premises are put to good, workable and
sanitary conditions .
It is expressly understood and agreed by LESSEE that no failure to
furnish any or all of such services , regardless of the cause of such
failure , shall be construed as an eviction or work an abatement of
the rent or in anywise render LESSOR liable for damages to person or
4
. � yo-yi5
property, whether suffered by LESSSE or any other person , by reason
of any such failure or release LESSBE from the prompt fulfillment of
any of its covenants under this Lease.
(13) Paysents in Case of Defanit. LESSEE shall pay LESSOR all
costs and expenses , including reasonable attorney's fees in any action
brought by LESSOR to recover any rent due and unpaid hereunder, or for
the breach or default of any of the covenants or agreements contained
in this Lease , or to recover possession of said property, whether such
action progresses to � udgment or not .
(14) Surrender of Preaises. The LESSEE , at the expiration of
said term, or any sooner termination of this lease , shall quit
peacefully and surrender possession of safd property and its
appurtenances to LESSOR in as good order and condition as the property
was delivered to the LESSEE .
(15) Indennity. The LESSEE agrees to indemnify, defend , save and
hold harmless the City of Saint Paul and any agents , officers and
employees thereof from all claims , demands , actions or causes of
action of whatsoever nature or character , arising out of or by reason
of the Lease of the herein described premises by the LESSOR to the
LESSEE , or the use or condition of the premises or as a result of the
operations or business activities taking place on the premises . It is
fully understood and agreed that LESSEE is aware of the conditions of
the Leased Premises and ' leases the same "as is . "
( 16) Holdover. Any holdover after the expiration of the term
of this Lease shall be allowed only after receiving the written consent
of the LESSOR. Said tenancy shall be deemed to be a tenancy only from
month-to-month. All of the other terms and conditions of this Lease
shall be applicable.
(17) Pollution and Conta�inants. LESSEE agrees to comply with
all ordinances , laws , rules and regulations enacted by any
governmental body or agency relating to the control , abatement or
emission of air and water contaminants and/or the disposal of refuse ,
solid wastes or liquid wastes .
LESSEE shall bear all cost and expense arising from compliance with
said ordinances , laws , rules , or regulations and shall indemnify ,
defend, save and hold harmless LESSOR from all liability, including
without limitation , fines , forfeitures , and penalties arising in
connection with the failure by LESSEE to comply with such ordinances ,
laws , rules or regulations . LESSOR has the right to perform cleanup
� and charge the LESSEE as Additional Rent for such costs should the
LESSEE fail to comply.
S
�r�-��s
(18) Controlling Lease. In the event there is any prior
existing lease or rental agreement between LESSEE and LESSOR (or its
predecessor in interest) covering the subject property, it is agreed
and understood that this Lease shall cancel and terminate any prior
leases or rental agreements as of the effective date of this lease.
(19) Destruction. In the event of damage to or destruction of
the Leased Premises or in the event the premises becomes untenantable
or unfit for occupancy due to such damage during the term of this
Lease, LESSOR may at its option:
(a) terminate the lease upon fifteen (15) days ' written notice
to LESSEE; or
(b) within fifteen (15) days agree to restore the premises
within a reasonable time period following the casualty,
charging the costs in excess of the insurance proceeds, if
any, to the LESSEE as Additional Rent; or
(c) may direct that LESSEE promptly restore the Leased Premises
to substantially the condition existing immediately prior to
such damage or destruction, and for that purpose, if such
damage or destruction was caused by perils insured against
the LESSOR shall make available to LESSEE pro-rata, as work
progresses, the net proceeds of such insurance. If such
proceeds are insufficient to pay the entire cost thereof,
LESSEE agrees to pay as Additional Rent, a lump sum payment
(or in a form agreed upon by the LESSOR) equal to the
remainder of such cost.
The Basic Rents to be paid during the restoration period shall be
abated in proportion to the percentage of loss and impairment of the
use of the Leased Premises as determined by the LESSOR, times the
number of days of loss or impairment.
(2f�) Events of Default. Any of the following events occurring
during the term of this Lease shall constitute an event of default by
the LESSEE:
(a) the filing of a petition to have LESSEE adjudicated
bankrupt or a petition for reorganization or arrangement
under any laws of the United States relating to bankruptcy
filed by LESSEE;
(b) in the event a petition to have LESSEE adjudicated bankrupt
is filed against LESSEE, the failure to dismiss such
petition within ninety (9A) days from the date of such
filing;
(c) the assets of LESSEE or of the business conducted by LESSEE
on the Leased Premises be assumed by any trustee or other
person pursuant to any judicial proceedings;
(d) LESSEE makes any assignment for the benefit of creditors;
6
� � � ��1�--y/.s
(e) the failure by LESSEE to timely pay Basic Rent or Additional
Rent as required by this Lease;
(f) the failure by LESSEE to observe and perform any covenant,
condition or agreement on its part to be observed or
performed as required by this Lease; or
(g) the failure by LESSEE or its surety to discharge, satisfy ar
release any lien or lien statement filed or recorded against
the Leased Premises within sixty days after the date of such
filing or recording , whichever date is earlier.
It is an express covenant and agreement of LESSOR and LESSEE that
LESSOR may, at its election, terminate this Lease in the event of the
occurrence of any of the events described in this paragraph or in
paragraph (23) relating to liens by giving not less than ten days '
written notice to LESSEE; and when so terminated, LESSOR may reenter
the Leased Premises. This Lease and its Leased Premises shall not be
treated as an asset of LESSEE's estate. It is further expressly
understood and agreed that LESSOR shall be entitled upon such reentry,
notwithstanding any other provision of this Lease, to exercise such
rights and remedies as are provided in Default Remedies Section of
this Lease.
(21) Compliance with Laws. The property described herein may be
used for only the purposes stated herein. It is the sole and
exclusive responsibility of the LESSEE in the use of the property to
comply with any and all laws, rules, regulations or ordinances imposed
by any jurisdiction affecting the use to which the property is
proposed to be put . Inability or failure on the part of the LESSEE to
comply with any of said laws, rules, regulations or ordinances will
not relieve the LESSEE of the obligation to pay the rental provided
herein.
(22) Non-Discrimination. The LESSEE for himself, his personal
representatives, successors in interest and assigns , as a part of the
consideration hereof, does hereby covenant and agree, as a covenant
running with the land, that
(1) no person, on the ground of race, sex, color creed,
religion, age, disability, marital status, status with
respect to public assistance or national origin or ancestry
shall be excluded from participating in, be denied the
benefits of or be otherwise subjected to discrimination in
the use of said facilities;
(2) that in connection with the construction of any improvements
on said lands and the furnishing of services thereon, no
discrimination shall be practiced in the selection of
employees and contractors, by contractors in the selection
and retention of first-tier subcontractors, and by first-
tier subcontractors in the selection and retention of
second-tier subcontractors;
7
� ��a�9/.�
(3) that such discrimination shall not be practiced against the
public in their access in and use of the facilities and
services provided for as public accommodations (such as
eating, sleeping, rest and recreation) constructed or
operated on the Leased Premises; and
(4) that the LESSEE shall use the premises in compliance with
all other requirements imposed pursuant to the Saint Paul
Legislative Code Chapter 183.
(23) Liens. The LESSEE shall not permit mechanic ' s liens or
other liens to be filed or established or to remain against the Leased
Premises for labor, materials or services furnished in connection with
any additions , modifications, improvements, repairs, renewals or
replacements made to the Leased Premises, or for any other reason,
provided that if the LESSEE shall first notify the LESSOR of its
intention to do so and shall c7eposit in escrow with the LESSOR a sum
of money or a bond or irrevocable letter of credit acceptable to the
LESSOR equal to the amount of the claim of lien, LESSEE may in good
faith contest any such claims or mechanic ' s or other liens filed or
established and in such event may permit the items contested to remain
undischarged and unsatisfied during the period of such contest. If,
in the opinion of the LESSOR, the nonpayment of any such items
subjects the Leased Premises to any loss or forfeiture, the LESSOR may
require the LESSEE to use the escrow account to promptly pay all such
unpaid items and if LESSEE fails to pay from the escrow account, the
LESSOR may pay and charge the LESSEE as Additional Rent.
(24) Eminent Domain. In the event the entire Leased Premises
are taken by eminent domain, or such portion thereof is so taken that
in LESSEE' s reasonable judgement it is uneconomic thereafter to
restore the Leased Premises and proceed under the terms and provisions
of this Lease, LESSEE may terminate this Lease by giving to LESSOR
thirty days ' written notice of termination, effective as of the date
on which the condemning authority acquires legal title or physical
possession of the Leased Premises . LESSEE hereby waives and releases
any claim to or share in the Award of Compensation for the taking,
notwithstanding any other provision of law, this Lease or any other
agreement. LESSEE may to the extent otherwise permitted in the
eminent domain proceeding, remove its own trade fixtures at its own
expense.
(25) Default Remedies. In the event an Event of Default occurs
under paragraph (20) of this Lease, LESSOR may exercise any one or
more of the following remedies:
(a) reenter and take possession of the Premises without
termination of this Lease, and use its best efforts to
lease the Premises to or enter into an agreement with
another person for the account of LESSEE;
8
� � � �0-��5
(b) terminate this lease, exclude LESSEE from possession of
the Premises, and use its best efforts to lease the Premises
to or enter into an agreement with another in accordance
with applicable law;
(c) exclude LESSEE from possession of the Premises, with or
without terminating this Lease and operate the Premises
itself;
(d) terminate the Lease, exclude LESSEE from possession of the
Premises, sell all or any part of the Premises at the best
price obtainable (provided such sale is permitted by
applicable law,) such sale to be on such terms and
conditions as the LESSOR, in its sole discretion, shall
determine and apply the proceeds of such sale less any
expenses thereof for the account of the LESSEE.
(e) exercise any remedies available to it under the Minnesota
Uniform Commercial Code;
(f) take whatever action at law or in equity may appear
necessary or appropriate to collect the Basic Rent and
Additional Rent then due and thereafter to become due, or to
enforce performance and observance of any obligation,
agreement or covenant of the LESSEE under this Lease.
(g) in exercising any of its remedies set forth in this Section,
the LESSOR rnay, whether or not the Lease is then in effect,
hold the LESSEE liable for the difference between the
payments and other costs for which the LESSEE is responsible
under this Lease.
No remedy herein conferred upon or reserved to LESSOR is intended to
be exclusive of any other available remedy or remedies, but each and
every such remedy shall be cumulative and shall be in addition to
every other remedy given under this Lease or now or thereafter
existing at law or in equity by statute. No delay or omission to
exercise any such right or power accruing upon any default shall
impair any such right or power or shall be construed to be a waiver
thereof, but any such right and power may be exercised from time to
time and as often as may be deemed expedient. In order to entitle the
LESSOR to exercise any remedy reserved to it in this Provision, it
shall not be necessary to give any notice, other than such notice as
may be herein expressly required.
(26) Alterations. The LESSEE will not rnake any alterations to the
premises without the written consent of the LESSOR, such consent not
to be unreasonably withheld. If the LESSEE desires to make any such
alterations, an accurate description shall first be submitted to and
approved by the LESSOR and such alterations shall be done by the
LESSEE at its own expense. All such work shall be performed under the
LESSOR'S supervision and any improvements made to the Leased Premises
at the LESSEE ' S expense shall become the property of the LESSOR at the
end of the Lease period. LESSEE agrees that all alterations will be
4
. �yo- ��s
done in a workmanlike manner and in conformance with applicable
building codes, that the structural integrity and building systems of
the building will not be impaired, and that no liens will attach to
the premises by reason thereof.
(27) Signage. LESSEE shall not construct or install or cause to
be constructed or installed any sign or signs upon the Premises for
the purpose of promoting its business or soliciting new business
without the prior consent and approval of the LESSOR. Al1 costs
associated with the construction or installation of such signs, as
well as the removal of such signs at the cancellation or termination
of this lease agreement, shall be borne solely by the LESSEE.
(28) Amended. Anything herein contained to the contrary
notwithstanding, this Lease may be terminated, and the provisions of
this Lease may be, in writing, amended by mutual consent of the
parties herein.
, �
��o ����
IN WITNESS WHEREOF, the parties hereto have set their hands and seals
the day and year in this Lease first above-written.
Mayor
City Clerk
Director of Finance and
Management Services
City Attorney (Form Approval)
LESSEE
I ts _
Its
Its
11
.� . . . � . . . . j�
.. , '�r . , � � � .
• � ! ', ��C�0 �j�• �I
�`�' '� • . 1K------ "' �
! � l.�Gt�:�7. _
� . . ' v;��T - _
; � . z -
: . .
�� r + .�vit�N_wAw_ � ' '~`
— � —
• � . . ► ' �� =
� � * a :
. • e
• • � � • i
, * � ��
� � �►
� .. �.e=�. (`��t�/����,( j �
. . .. iX�S! i P�`�• •
. � . Q n o�� 1 �-- ; ��,
� --- - � �-+-�-�=r=�� a ;
• � "�..�� L �� .
� ' ` - �i * �'t .r�
""' � � � ��-�-
_ , . � . �' ��,: � O-0 : � B .'� r
� � j ` ': ��
� �� c
, �.�
. -. � ' � '�R��..S :
� . • ` •� � rj � �� ���
� � \ . �� � ��/ �� ,
! . ! �t �
� � � � �t �
. � , �
. ; 1 ' �'j ' ` �' `
� �
. , . .� � wJL
. ' _ �� ��
- _ �
; , .�
, • . �
, -
� �_ - . � Y-o ,� ;..._
. ,:,�,.
t
• . �rr`�. - - � . r�
. �.
� . �. . �
« • . .v
. . � ; . . ���� ��� �, , . �o�.. ��
. . - � 5cn �� , ;, �. . . =-2 ��
, � . $ . . - �
. , • . . . .. . _ �
. � � . � . - ;
• � � � . . - _ . ..__._- --.. . . _ . _ ._ �,,,:�`
. ,
_ .. � ..__ ... . _. - -_: -----:.--�_ _. -- .l- .: . .__: -. i� _. . .. !_
. . . . . ��
. � ' .
�� . * • . � . ' - . t ., ' . . . � . �—� T- — ��
.. . . 1 . : . . . 8 •� � ��
: • . ' . = _ j,�D%� � , �� _
� � � ' � . f-Z� i
`•� � � I�? �-- ►
�^� ` � • { '. • � � ' . . • � �
. ' - _ � - .�
.� ^r- ° ' . � �' . _ � ! ` I T_i
1 ' �
� , '�• �• �; •., � ' ' • • �► •LV�Ii'�'_OF"._...� _- S � _�-'�_ . •-
. C G - �� 7.�i�.1G�--- .� ' � .
��
'.'�--r�� 1 _ �1 . � - _ _ � • - �- - � -