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99-07Return copy to: Real Estate Division 140 City Hall oRi��Nat RESOLUTION io ii iz 13 14 is CITY O,�SAINT PAUL, MINNESOTA Resen[ed Referred To Council File # �'�� Green Sheet #� flP Cammittee: Date WHEREAS, since 1960 the City has leased, through L,ease Agreement PW/3, approximately 19,000 squaze feet of vacant land over a sewer pumping station to Health Partners, Inc., formerly Group Health Plan, Inc., for use as a pazking lot for its Como Avenue clinic; and WHEREAS, said I.ease Agreement PW/3 expired on August 31, 1998 and has continued on a month- to-month basis; and WHEREAS, it is the expressed intention of both parties to extend the lease for an additional five year term; and WHEREAS, the Real Estate Division has determined that the agreed upon rent represents the fair mazket value of the property; NOW THEREFORE BE IT RESOLVED, that the proper City officials are hereby authorized and directed to execute Lease Agreement PW/3. Requested by Department of: Adopted by Council: Date \ `i Adopt� n Cerkified by Counci ecretary / By: �.--_ a- Pc��a.,,� / Approved b Mayor: D �.l � 1 r 1� By: �r.c tc Technolo�v & Manaeement Services By: �..�� /v�L.� Direct Form Approved by City Attorney ����� \ sy: ���cvv�-� ( - 21 -!� Mayor for�upmiss��i to Council . � � T.M.S./REAL ESTATE DIVISTON Date: 11/9/98 Green eet Number: 52167 ntact Person and Phone Number: 2 EPARTMENT DI 4 CI1'Y COIINCO, q9.�� DaveNelson � 266-8850 1�Tti'ATTORNEY 2 � i �Y rrYCLE�uc UDGET DIRECTOR FFICE OF FINANCIAL SVCS. ust be on Council Agenda by: 3 YOR (OR ASSISTA 5 ESTATE DIVLSION OTAL # OF SIGNATURE PAGES 1 (CLIP ALL LOCA1`IONS OR GNATURE) CTION REQUESTED: To approve a five year extension of Lease Agreement PW/3 providing 19,000 square Feet of parking space for Health Partners, Inc. at its Como Avenue clinic. Ref: 1. Resolution for consideration; 2. Sample copy of Lease Agreement PW/3. COMMENDATIONS: APPROVE (A) OR RF,JECT (A) ERSONAL SERVICE CONTRACTS M[JST ANSWER THE FOLLOWING: . Has the persodSrm ever worked under a contract for this department? YES NO PLANNA'G COMMISSION A S'CAFF . Has W�s persodfirm ever been a City employee? YES NO crva ssxvrce coiwwssioN . Dces this person/Srm possess a sldll not uormally possessed by any YES NO current City employee? CB COMMITCEE E lain all YES answers on a se arate sheet and attach. UPPORTS WffiCH COUNCIL OBJECTIVE? COUNCIL WARD(S) a DISTRICT PLANNING COUNCIL � 2 HI17A7'ING PROBLEM, ISSiIE, OPPORTl1NITP (Whq Whay 4Vheq W6ere, Why?): This lease agreement expired on August 31,1998. �'„ .� t;e^,.,va�, s VANTAGES IF APPROVED: ....... ... ..,. ,,. t � Health Partners will have sufficient parking at its Como Avenue clinic. � � � � � ��� ISADVANTAGES IF APPROVF.D: ' None _ - = • .;, LSADVANTAGES IF NOT APPROVED: *� f� t Ui_L L. � S�JJ Health Partners would not have sufficient parking space. r fi°�:� � C� .� L � u��� F �� �.e= � v i� orai, aMOVx�r oF TTeaivsacziox: $19,840.00 COST/REVF.NIJE BUDGETED (CIRCLE ONE) YES NO ING SOURCE: �T�A ACTIVI'PP NOMBER: N�A ANCIAL INFORMATION: (EXPLAIN) $19,840 represents space rental over tive year term of agreement. (PW3) Revised June 10. 1998 Authority (C.F. or A.O.) LEASE NO. FINANCB DEPT. LEASE /3 DATE: June 10. 1998 LESSOR: CITY OF SAINT PAUL DEPARTMENT OF PUBLIC WORKS LESSEE: HEALTH PARTNERS. INC. 8100 34th Avenue South - P.O. Box 1309 Minneapolis. Minnesota 55440-1309 qq .o� CITY OF SAINT PAUL STANDARD LEASE AGREEMENT (1] Leased Premises. The LESSOR, in consideration of the payment of the Basic Rent and Additional Rent hereinafter specified to be paid by the LESSEE, and the covenants and agreements herein contained, does hereby lease, demise and let unto LESSEE the premises hereinafter refened to as the "Leased Premises," whose address is: 2500 Como Avenue West and which is legally described as: the south'h of vacated street adjoining and Lots 233 and 24, Block 8, St. Anthony Park North, including only the surface parking area and specifically excluding the pumping station and its access. �2� together with any buildings, fixtures in such buildings, improvements and structures, if any, located thereon; See Exhibit "A", plan or map of leased azea which is incorporated herein by this reference. Term of Lease. This lease shall be in effect for a term commencing and ending on the dates indicated below, unless ternunated earlier by the LESSOR as provided herein. Term (Months/Years) 5 Years Commencing Date September 1, 1998 Ending Date August 31, 2003 [3) Use of Premises. The LES SEE shall use and occupy the Leased Premises for the following purpose: Automobile Parkine and for no other purpose without the prior written consent of LESSOR. [4] Rent. Rent shall consist of Basic Rent and such Additional Rent as may apply. LESSEE shali pay all rent in advance, on the first day of the term of the lease and on the first day of each payment period thereafter as indicated in the Payment Schedule below: (A) Basic Rent Schedule Qq.O`l Total Basic Rent During Lzase Term (Payment Period — Commencing Date —$ per Period) $19,840.00 annual September 1, 1998 $3,968.00 (B) Additional Rent. Additional Rent means all amounts, other than Basic Rent provided for in pazagraph (4-A) above, that LESSEE shall be obligated to pay under this pazagraph or other provisions of this Lease. Additional Rent sha11 include, but is not limited to, the following fees, costs and expenses: (1) �2) (3) (4) all utilities, including water, electric, gas, telephone, sewage and gazbage collection and disposal; costs for the repairs, improvements or alterations required to be made by the LESSEE in pazagraph 11 of this L.ease; all taaces on realty or personalty, general or special; (4) all public rates, dues, charges and assessments, general or special, of any kind upon the I.eased Premises; and property insurance premium and/or uninsured losses as set forth in paragraph (7) of this L.ease. In the event that LESSEE does not make such payments (or any payments required to be paid as Additional Rent), LESSOR may make the payments at its option, and the payments so paid become Additional Rent, and are due and payabie by the LESSEE with the payment of Basic Rent next required after written notice of same to the L,ESSBE by LESSOR. LESSEE sha11 make ali payments of Basic Rent and Additional Rent to LESSOR at the following address: City of Saint Paul - Finance Accountin�Division 210 Citv Ha11- 15 West Kellogg Boulevard - Saint Paul, Minnesota 55102 The applicable account number for City Finance Accounting Code is: 42310 All Basic and Additional Rent shall be payable on the date certain provided herein, or — if no date certain is provided — within 30 days of the billing date. The Lessor shall charge interest of 1.5% per month on any Basic or Additional Rent remaining unpaid beyond the due date as here provided. [5] Taxes. LESSEE shall be responsible for and pay a11 taYes and assessments against the I,eased Premises, except that LESSEE may at its own expense contest and challenge the imposition or amount of any such tax or assessment as prescribed by law; provided, however, that in the event this L.ease is terminated by either party, LESSOR may at its option require the LESSEE to pay such contested ta�ces pending appeal, to place in escrow a sum sufficient to pay said ta�ces, or take other action that will remove said contested taaces as an encumbrance to title or as an exception to the transferability of marketable title to the Leased Premises. 2 qq -o� [6] Right of Entrv. At all times during the term of this lease, the LESSOR shall have the right, by itseif, its agents and employees, to enter into and upon the L.eased Premises during reasonable business hows or, in the event of an emergency, at any time for any legitimate purpose. [7] Insurance. (A) L.ESSOR'S Insurance. 'I'he LESSOR shall acquire and keep in effect during the term of this agreement the following coverages: (1) FIRE AND ALL RISK INSURANCE, on the Leased Premises with limits of not less than N/A shall be purchased by the LESSOR; the LESSEE shall pay, as Additional Rent, the premium for said insurance and, in the event of a claim, any deductible. Said 'ansurance shall name the City of Saint Paul as the insured. With respect to any loss of the LESSOR'S property not covered by insurance, it shall be the responsibility of the LESSEE, within a reasonable time, to pay all costs to repair or replace the damaged property with like kind, such reasonable time to be determined by the L.ESSOR. LESSEE shall be responsible for insurance of its own property. (B) LESSEE'S Insurance. The LESSEE shall acquire during the term of this lease the following coverage: (1) The LESSEE shall be responsible for the self insurance of, or the acquisition of Commercial Property Insurance on, its personal property. (2) COMIvIERCIAL GENERAL LIABILTTY INSURANCE including blanket contractual liability coverage, personai injury liability coverage and broad form property damage liability endorsement with a combined single limit of not less than $750,000 per occurrence shall be purchased by the LESSEE. Such insurance shall: (a) name the City of Saint Paul as additional insured; (b) be primary with respect to LESSOR'S insurance or self-insurance; (c) not exciude explosion, collapse and underground property damage; (d) be written on an "Occurrence" Form policy basis; and (e) not contain an"aggregate" policy limit unless specifically approved in writing by LE5SOR. (3) AUTOMOBII,E LIABILTTY INSURANCE with minimum limits of $750,000 combined single limit and $1,000,000 aggregate, covering hired, non-owned and owned automobiles. (4) WORKERS'COMPENSATIONINSURANCEwithnotlessthanstatutoryminimum limits; and EMPLOYERS' LIABII,TI'Y INSURANCE with minimum limits of at least $100,000 per accident and with an all states endorsement. (5) The LESSEE sha11 supply to LESSOR current insurance certificates for policies required in Paragraph (7). The said certificates shall certify whether or not the agent has errors and omissions insurance coverage. aq _o� (6) The limits cited under each insurance requirement above establish minimums; and it is the sole responsibility of the LESSEE to purchase and maintain additional insurance that may be necessary in relation to this lease. (7) Nothing in this contract shall constitute a waiver by the LESSOR of any statutory limits or exceptions on liability. (8) LESSEE shall place the insurance with responsible insurance companies authorized and licensed to do business in the State of Minnesota and approved by LESSOR, and shall deliver copies of the policies to LESSOR on the date of LESSEE'S execution of this agreement. The policies required in pazagraph (7) shall be endorsed to indicate that the insurer cannot cancel or change the insurance without first giving the LESS012 30 days' written notice. (9) Insurance limits shall be subject to the tort claims liability limits as set forth in chapter 466 of Minnesota Statutes. (C) Waiver of Subro¢ation. LESSOR waives its right of subrogation for damage to the Building, contents therein, loss of use thereof, and/or loss of income, up to the amount of insurance proceeds collected. LESSEE waives its right of subrogation for damage to property in the I,eased Premises, loss of use thereof, loss of income and/or accounts receivable, up to the amount of their respective insurance proceeds collected. The parties shall notify their respective insurance companies, in writing, of the provisions of this pazagraph; and, if either cannot waive its subrogation rights, such party shall immediately notify the other party, in writing. [8] Cancellation or Termination. This lease shall be sub}ect to cancellation and ternunation by LESSOR at any time during the term hereof by giving the LESSEE notice in writing at ninety (90) days, (thirty (30) days for leases with a term of one (1) year or less or any month-to-month tenancies) prior to the date when such ternunation shall become effective. In the event of such termination, and on the effective date of such ternunation, LESSOR shall return any unearned rental paid by the LESSEE without interest. [9] Notice. All notices herein provided to be given, or that may be given by either party to the other, shail 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 LES5EE at the address stated on page (1) and to the LESSOR at the Real Estate Division, 140 City Ha11, Saint Paul, Minnesota 55102. The address to which the notice sha11 be mailed may be changed by written notice given by either party to the other. Nothing herein shail preclude the giving of such address change notice by personal service. [10] Assienment and Sublettin� L.ESSEE 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 L.eased Premises. qq-o'l [ll] Maintenance and Repairs. LESSEE shall, at its own cost and expense, be responsible for all repairs, maintenance and upkeep of the L.eased Premises, including but not limited to emergency repairs of any kind; routine maintenance and repair to keep the Leased Premises in good repair, safe and in compliance with applicable fire, health, building and other life-safety codes; and all repairs and maintenance needed to keep the buildings or structures on the Leased Premises in good con- dition, including (a) the exterior (including windows and doors) and interior structure of the buildings or structures, (b) the roof or roofs, (c) the heating, ventilating and air conditioning systems therein, (d) a11 electrical, plumbing, lighting, mechanical systems, fue suppression equipment, i.e. fire sprinkler system; and (e) all grounds, fences and roads within the I.eased Premises. The foregoing obligations shall bind the LESSEE regazdless of the cause of the damage or condition necessitating the repair or maintenance. [12] Pavments in Case of Default. LESSEE shall pay I,ESSOR 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 L.ease, or to recover possession of said property, whether such action progresses to judgment or not. [13] Surrender of Premises. The L.ESSEE, at the expiration of said term, or any sooner termination of this lease, shall quit peacefully and surrender possession of said property and its appurtenances to LESSOR in as good order and condition as the property was delivered to the LESSEE. [14] Indemnitv. 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, azising out of or by reason of the Lease of the herein described I.eased Premises by the LESSOR to the LESSEE, or the use or condition of the L.eased Premises or as a result of the operations or business activities taking place on the Leased Premises. It is fully understood and agreed that LESSEE is aware of the conditions of the I,eased Premises and leases the same "as is." [15] Holdover. Any holdover after the expiration of the term of this Lease shall be allowed oniy after receiving the written consent of the LESSOR. Said tenancy shall be deemed to be a tenancy only from month-to-month. All other terms and conditions of this L.ease shall be applicable. [16] Pollution and Contaminants. LESSEE agrees to comply with all ordinances, laws, rules and regulations enacted by any govemmental body or agency relating to the control, abatement or emission of air and water contaminants and the disposal of refuse, solid wastes or liquid wastes. LESSEE sha11 beaz all costs and expenses arising from compliance with said ordinances, laws, rules, or regulations and shall indemnify, defend, save and hold harmless LESSOR from allliability, in- cluding without limitation, fines, forfeitures, and penalties azising from the failure by LESSEE to comply with such ordinances, laws, rules or regulations. LESSOR has the right to perform cleanup and chazge the LESSEE as Additional Rent for such costs should the LESSEE fail to comply. n a IO� L � [17] 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 ternunate any prior leases or rental agreements as of the effective date of this lease. [18] Destruction. In the event of damage to or destruction of the L.eased Premises or in the event the premises becomes untenantable or unfit for occupancy due to such damage during the term of this I.ease, LESSOR may at its option: (A) ternunate 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 dam- age 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 Kents to be paid during the restoration period shali be abated in proportion to the percentage of loss and impairment of the use of the I.eased Premises as deternuned by the LESSOR, times the number of days of loss or impairment. [19] Events of Default. The occurrence of any of the following events during the term of this Lease sha11 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 (90) 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 bene6t of creditors; (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 L.ease; or (G) the failure by LESSEE or its surety to dischazge, satisfy or release any lien or lien statement filed or recorded against the L,eased Premises within sixty days after the date of such filing or recarding, whichever date is earlier. � c�q-o`I It is an express covenant and agreement of LESSOR and LESSEE that LESSOR may, at its election, ternunate this Lzase in the event of the occurrence of any of the events described in this paragraph or in pazagraph (22) relating to liens by giving not less than ten days' written notice to LESSEE; and when so terminated, LESSOR may reenter the I,eased Premises. This Lzase and its Leased Premises shall not be treated as an asset of LESSEE'S estate. It is fiuther 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 aze provided in Pazagraph (24) of this Lease. [20] 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 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 by 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. [21] 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 (A) 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; (B) that in connection with the construction of any improvements on said lands and the fumishing of services thereon, no discrimination shall be practiced in the selection of em- ployees and contractors, by contractors in the selection and retention of first tier subcontract- ors, and by first-tier subcontractors in the selection and retention of second-tier subcon- tractors; (C) that such discrimination shall not be pracuced against the public in its access in and use of the facilities and services provided for public accommodations (such as eating, sleeping, rest and recreation) constructed or operated on the I.eased Premises; and (D) that the LES5EE shall use the premises in compliance with all other requirements imposed pursuant to the Saint Paul L.egislative Code Chapter 183. [22] Liens. The LESSEE shall not pernut mechanic's liens or other liens to be filed or established or to remain against the I.eased Premises for labor, materials or services fumished in connection with any additions, modifications, improvements, repairs, renewals or replacements made to the I,eased Premises, or for any other reason; provided that if the LESSEE sha11 first notify the LES50R of its intention to do so and shall deposit in escrow with the LESSOR a sum of money or a bond or inevocable letter of credit acceptable to the LESSOR equal to the amount of the claim of lien, qq_o�1 LESSEE may in good faith contest any such claims or mechanic's or other liens filed or established and in such event may pernut the items contested to remain undischazged 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 es- crow account to promptly pay all such unpaid items and if LESSEE fails to pay from the escrow account, the LESSOR may pay and chazge the LESSEE as Additional Rent. [23] Eminent Domain. In the event the entire I.eased Premises aze taken by eminent domain, or such portion thereof is so taken that in LESSEE'S reasonable judgement it is uneconomic thereafter to restore the L,eased Premises and proceed under the terms and provisions of this L,ease, LESSEE may ternunate this L,ease 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 L,eased Premises. LESSEE hereby waives and releases any claim to or shaze in the Awazd of Compensation for the taking, notwithstanding any other provision of law, this I,ease or any other agreement. LESSEE may to the extent otherwise pernutted in the eminent domain proceeding, remove its own trade fixtures at its own expense. [24] Default Remedies. In the event an Event of Default occurs under puagraph (19) of this Lease, LESSOR may exercise any one or more of the following remedies: (A) reenter and take possession of the Premises without temunation of this Lease, and use its best efforts to ease the Premises to or enter into an agreement with another person for the account of L,ESSEE; (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 Leased Premises, sell all or any part of the Premises at the best price obtainable (provided such sale is pernutted by applic- able law,) such sale to be on such terms and conditions as the LESSOR, in its sole discretion, shall deternune 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 appeaz 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 LE5SOR may, whether or not the I.ease 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 I.ease. qq-o�t No remedy herein conferred upon or reserved to LESSOR is intended to be exclusive of any other available remedy or remedies, but each such remedy shall be cumulative and shail be in addition to every other remedy given under this L.ease 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 I,ESSOR 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. [25] Default of Pavment. LESSEE agrees that, should it default on any payment owing and due to be paid to LESSOR as provided in this agreement, including but not limited to Basic Rent and Additional Rent, then the remaining unpaid balance shall, at the option of the LESSOR, immediately become due. Said LESSEE further agrees that the LESSOR may, at its option and without notice to LESSEE, enter judgment against LESSEE in Ramsey County District Court for the amount of the unpaid balance. And LESSEE does hereby confess judgment in the amount of the unpaid balance due upon default, and does authorize the LESSOR to enter judgment as provided above. LESSEE does hereby agree that the LESSOR, at its option, may enter a judgment, at any time within one year of the time the last payment shall have come due, for the full amount of the unpaid balance due pursuant to the confession of judgment provided herein. [26] Alterations. The LESSEE will not make ariy alterations to the premises without the written consent of the LESSOR, such consent not to be unreasonably withheld. ff the LESSEE desires to make any such alterations, an accurate description shall first be submitted to and approved by the LESSOR and such alterations shail be done by the L,ESSEE at its own expense. Ail 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 L.ESSOR at the end of the Lease period. LESSEE agrees that all alterations will be done in a workmanlike manner and in confo_rn?ance wiLh applicable buiiding 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] Amended. Anything herein contained to the contrary not withstanding, this L.ease may be terminated, and the provisions of this Lease may be, in writing, amended by mutual consent of the parties hereto. qq�0`1 IN WITNESS WHEREOF, the parties hereto have set their hands and seals the day and yeaz in this L,ease first abov�written. LESSOR: Mayor City Clerk Director of Technology & Management Services Department Director City Attorney (Form Approval) LESSEE: Its Its Its � . ..1 j)'�"Y�l �r '�� � "_ _'_ —" �aG1 �zr¢;'<t�y�r.�ron__—' _ ., �:;. � . ,� o � . . a9_�� �' • :� e����,o .: -� a`; i �1 $ AY.[ftIUN �y�MLRAN LHJ0.CN -e!'. ilc�'teJ � �i��� � '" ��I � EXHIBIT"A' `<<x.,,-_" ;5 �'c .� I .:<. ,_; fo %'� �: ' s �� '`? �� � LEASE AGREEMENT PW/3 �-e ` ;i:� ,:.. �' '�,ti i�� z '. •� � �,� " .Y �'', `' • . � r .� " � �'� � . :, i � °Q=` �> \�'` --� "� � ,ei.c�c% - .R't /„•. '' � 06. ` ��.� c -...� �3� i ...F:P �' . C>o � �' \ O acioeG � � i J o • N` \ 7 � ICO � O • • ' <5 \ � �a,tee�! � � l.m... I ��� � ' :�ea `��` . i . I `� � . i ' � � 1 LEA:E �+e,���s t -� • �'�� Te p ,l .sf+a. � ``` a � °�RO.,o H�F�:N � q, `'� Fa. . � � m� � ,� --•�--y-; ----- `�,;. " • i l F % ' ' �.�.i.• G �a' Ce.,f. 1 '^. ^-, F ,A ' s. 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I lt �'�� IG � (� Y � � ..o' : .re• •° � �°. °� � `_-" �<3' I2 � ): c m.• naa ^ � n.o• � w .� . . � � I _� _ � � O �'�: .�' ; �> �i%` ,t,i �� �s� ;-0? ,ae� ;zz� ; j I $ �s 14 �� �c n w' m n zc zs z4 zs ' zz zi zo ie �e � , W . .>.. , . ,.., i '� �o• �o• ,_ ,e .o• �o �e — \ V/•i�ID � /��_y�r � O 3JU]�Tl�� � � //.tf��-G ' � Tf �C TLLS/i 485 : -- , . ,�.,�� , Return copy to: Real Estate Division 140 City Hall oRi��Nat RESOLUTION io ii iz 13 14 is CITY O,�SAINT PAUL, MINNESOTA Resen[ed Referred To Council File # �'�� Green Sheet #� flP Cammittee: Date WHEREAS, since 1960 the City has leased, through L,ease Agreement PW/3, approximately 19,000 squaze feet of vacant land over a sewer pumping station to Health Partners, Inc., formerly Group Health Plan, Inc., for use as a pazking lot for its Como Avenue clinic; and WHEREAS, said I.ease Agreement PW/3 expired on August 31, 1998 and has continued on a month- to-month basis; and WHEREAS, it is the expressed intention of both parties to extend the lease for an additional five year term; and WHEREAS, the Real Estate Division has determined that the agreed upon rent represents the fair mazket value of the property; NOW THEREFORE BE IT RESOLVED, that the proper City officials are hereby authorized and directed to execute Lease Agreement PW/3. Requested by Department of: Adopted by Council: Date \ `i Adopt� n Cerkified by Counci ecretary / By: �.--_ a- Pc��a.,,� / Approved b Mayor: D �.l � 1 r 1� By: �r.c tc Technolo�v & Manaeement Services By: �..�� /v�L.� Direct Form Approved by City Attorney ����� \ sy: ���cvv�-� ( - 21 -!� Mayor for�upmiss��i to Council . � � T.M.S./REAL ESTATE DIVISTON Date: 11/9/98 Green eet Number: 52167 ntact Person and Phone Number: 2 EPARTMENT DI 4 CI1'Y COIINCO, q9.�� DaveNelson � 266-8850 1�Tti'ATTORNEY 2 � i �Y rrYCLE�uc UDGET DIRECTOR FFICE OF FINANCIAL SVCS. ust be on Council Agenda by: 3 YOR (OR ASSISTA 5 ESTATE DIVLSION OTAL # OF SIGNATURE PAGES 1 (CLIP ALL LOCA1`IONS OR GNATURE) CTION REQUESTED: To approve a five year extension of Lease Agreement PW/3 providing 19,000 square Feet of parking space for Health Partners, Inc. at its Como Avenue clinic. Ref: 1. Resolution for consideration; 2. Sample copy of Lease Agreement PW/3. COMMENDATIONS: APPROVE (A) OR RF,JECT (A) ERSONAL SERVICE CONTRACTS M[JST ANSWER THE FOLLOWING: . Has the persodSrm ever worked under a contract for this department? YES NO PLANNA'G COMMISSION A S'CAFF . Has W�s persodfirm ever been a City employee? YES NO crva ssxvrce coiwwssioN . Dces this person/Srm possess a sldll not uormally possessed by any YES NO current City employee? CB COMMITCEE E lain all YES answers on a se arate sheet and attach. UPPORTS WffiCH COUNCIL OBJECTIVE? COUNCIL WARD(S) a DISTRICT PLANNING COUNCIL � 2 HI17A7'ING PROBLEM, ISSiIE, OPPORTl1NITP (Whq Whay 4Vheq W6ere, Why?): This lease agreement expired on August 31,1998. �'„ .� t;e^,.,va�, s VANTAGES IF APPROVED: ....... ... ..,. ,,. t � Health Partners will have sufficient parking at its Como Avenue clinic. � � � � � ��� ISADVANTAGES IF APPROVF.D: ' None _ - = • .;, LSADVANTAGES IF NOT APPROVED: *� f� t Ui_L L. � S�JJ Health Partners would not have sufficient parking space. r fi°�:� � C� .� L � u��� F �� �.e= � v i� orai, aMOVx�r oF TTeaivsacziox: $19,840.00 COST/REVF.NIJE BUDGETED (CIRCLE ONE) YES NO ING SOURCE: �T�A ACTIVI'PP NOMBER: N�A ANCIAL INFORMATION: (EXPLAIN) $19,840 represents space rental over tive year term of agreement. (PW3) Revised June 10. 1998 Authority (C.F. or A.O.) LEASE NO. FINANCB DEPT. LEASE /3 DATE: June 10. 1998 LESSOR: CITY OF SAINT PAUL DEPARTMENT OF PUBLIC WORKS LESSEE: HEALTH PARTNERS. INC. 8100 34th Avenue South - P.O. Box 1309 Minneapolis. Minnesota 55440-1309 qq .o� CITY OF SAINT PAUL STANDARD LEASE AGREEMENT (1] Leased Premises. The LESSOR, in consideration of the payment of the Basic Rent and Additional Rent hereinafter specified to be paid by the LESSEE, and the covenants and agreements herein contained, does hereby lease, demise and let unto LESSEE the premises hereinafter refened to as the "Leased Premises," whose address is: 2500 Como Avenue West and which is legally described as: the south'h of vacated street adjoining and Lots 233 and 24, Block 8, St. Anthony Park North, including only the surface parking area and specifically excluding the pumping station and its access. �2� together with any buildings, fixtures in such buildings, improvements and structures, if any, located thereon; See Exhibit "A", plan or map of leased azea which is incorporated herein by this reference. Term of Lease. This lease shall be in effect for a term commencing and ending on the dates indicated below, unless ternunated earlier by the LESSOR as provided herein. Term (Months/Years) 5 Years Commencing Date September 1, 1998 Ending Date August 31, 2003 [3) Use of Premises. The LES SEE shall use and occupy the Leased Premises for the following purpose: Automobile Parkine and for no other purpose without the prior written consent of LESSOR. [4] Rent. Rent shall consist of Basic Rent and such Additional Rent as may apply. LESSEE shali pay all rent in advance, on the first day of the term of the lease and on the first day of each payment period thereafter as indicated in the Payment Schedule below: (A) Basic Rent Schedule Qq.O`l Total Basic Rent During Lzase Term (Payment Period — Commencing Date —$ per Period) $19,840.00 annual September 1, 1998 $3,968.00 (B) Additional Rent. Additional Rent means all amounts, other than Basic Rent provided for in pazagraph (4-A) above, that LESSEE shall be obligated to pay under this pazagraph or other provisions of this Lease. Additional Rent sha11 include, but is not limited to, the following fees, costs and expenses: (1) �2) (3) (4) all utilities, including water, electric, gas, telephone, sewage and gazbage collection and disposal; costs for the repairs, improvements or alterations required to be made by the LESSEE in pazagraph 11 of this L.ease; all taaces on realty or personalty, general or special; (4) all public rates, dues, charges and assessments, general or special, of any kind upon the I.eased Premises; and property insurance premium and/or uninsured losses as set forth in paragraph (7) of this L.ease. In the event that LESSEE does not make such payments (or any payments required to be paid as Additional Rent), LESSOR may make the payments at its option, and the payments so paid become Additional Rent, and are due and payabie by the LESSEE with the payment of Basic Rent next required after written notice of same to the L,ESSBE by LESSOR. LESSEE sha11 make ali payments of Basic Rent and Additional Rent to LESSOR at the following address: City of Saint Paul - Finance Accountin�Division 210 Citv Ha11- 15 West Kellogg Boulevard - Saint Paul, Minnesota 55102 The applicable account number for City Finance Accounting Code is: 42310 All Basic and Additional Rent shall be payable on the date certain provided herein, or — if no date certain is provided — within 30 days of the billing date. The Lessor shall charge interest of 1.5% per month on any Basic or Additional Rent remaining unpaid beyond the due date as here provided. [5] Taxes. LESSEE shall be responsible for and pay a11 taYes and assessments against the I,eased Premises, except that LESSEE may at its own expense contest and challenge the imposition or amount of any such tax or assessment as prescribed by law; provided, however, that in the event this L.ease is terminated by either party, LESSOR may at its option require the LESSEE to pay such contested ta�ces pending appeal, to place in escrow a sum sufficient to pay said ta�ces, or take other action that will remove said contested taaces as an encumbrance to title or as an exception to the transferability of marketable title to the Leased Premises. 2 qq -o� [6] Right of Entrv. At all times during the term of this lease, the LESSOR shall have the right, by itseif, its agents and employees, to enter into and upon the L.eased Premises during reasonable business hows or, in the event of an emergency, at any time for any legitimate purpose. [7] Insurance. (A) L.ESSOR'S Insurance. 'I'he LESSOR shall acquire and keep in effect during the term of this agreement the following coverages: (1) FIRE AND ALL RISK INSURANCE, on the Leased Premises with limits of not less than N/A shall be purchased by the LESSOR; the LESSEE shall pay, as Additional Rent, the premium for said insurance and, in the event of a claim, any deductible. Said 'ansurance shall name the City of Saint Paul as the insured. With respect to any loss of the LESSOR'S property not covered by insurance, it shall be the responsibility of the LESSEE, within a reasonable time, to pay all costs to repair or replace the damaged property with like kind, such reasonable time to be determined by the L.ESSOR. LESSEE shall be responsible for insurance of its own property. (B) LESSEE'S Insurance. The LESSEE shall acquire during the term of this lease the following coverage: (1) The LESSEE shall be responsible for the self insurance of, or the acquisition of Commercial Property Insurance on, its personal property. (2) COMIvIERCIAL GENERAL LIABILTTY INSURANCE including blanket contractual liability coverage, personai injury liability coverage and broad form property damage liability endorsement with a combined single limit of not less than $750,000 per occurrence shall be purchased by the LESSEE. Such insurance shall: (a) name the City of Saint Paul as additional insured; (b) be primary with respect to LESSOR'S insurance or self-insurance; (c) not exciude explosion, collapse and underground property damage; (d) be written on an "Occurrence" Form policy basis; and (e) not contain an"aggregate" policy limit unless specifically approved in writing by LE5SOR. (3) AUTOMOBII,E LIABILTTY INSURANCE with minimum limits of $750,000 combined single limit and $1,000,000 aggregate, covering hired, non-owned and owned automobiles. (4) WORKERS'COMPENSATIONINSURANCEwithnotlessthanstatutoryminimum limits; and EMPLOYERS' LIABII,TI'Y INSURANCE with minimum limits of at least $100,000 per accident and with an all states endorsement. (5) The LESSEE sha11 supply to LESSOR current insurance certificates for policies required in Paragraph (7). The said certificates shall certify whether or not the agent has errors and omissions insurance coverage. aq _o� (6) The limits cited under each insurance requirement above establish minimums; and it is the sole responsibility of the LESSEE to purchase and maintain additional insurance that may be necessary in relation to this lease. (7) Nothing in this contract shall constitute a waiver by the LESSOR of any statutory limits or exceptions on liability. (8) LESSEE shall place the insurance with responsible insurance companies authorized and licensed to do business in the State of Minnesota and approved by LESSOR, and shall deliver copies of the policies to LESSOR on the date of LESSEE'S execution of this agreement. The policies required in pazagraph (7) shall be endorsed to indicate that the insurer cannot cancel or change the insurance without first giving the LESS012 30 days' written notice. (9) Insurance limits shall be subject to the tort claims liability limits as set forth in chapter 466 of Minnesota Statutes. (C) Waiver of Subro¢ation. LESSOR waives its right of subrogation for damage to the Building, contents therein, loss of use thereof, and/or loss of income, up to the amount of insurance proceeds collected. LESSEE waives its right of subrogation for damage to property in the I,eased Premises, loss of use thereof, loss of income and/or accounts receivable, up to the amount of their respective insurance proceeds collected. The parties shall notify their respective insurance companies, in writing, of the provisions of this pazagraph; and, if either cannot waive its subrogation rights, such party shall immediately notify the other party, in writing. [8] Cancellation or Termination. This lease shall be sub}ect to cancellation and ternunation by LESSOR at any time during the term hereof by giving the LESSEE notice in writing at ninety (90) days, (thirty (30) days for leases with a term of one (1) year or less or any month-to-month tenancies) prior to the date when such ternunation shall become effective. In the event of such termination, and on the effective date of such ternunation, LESSOR shall return any unearned rental paid by the LESSEE without interest. [9] Notice. All notices herein provided to be given, or that may be given by either party to the other, shail 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 LES5EE at the address stated on page (1) and to the LESSOR at the Real Estate Division, 140 City Ha11, Saint Paul, Minnesota 55102. The address to which the notice sha11 be mailed may be changed by written notice given by either party to the other. Nothing herein shail preclude the giving of such address change notice by personal service. [10] Assienment and Sublettin� L.ESSEE 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 L.eased Premises. qq-o'l [ll] Maintenance and Repairs. LESSEE shall, at its own cost and expense, be responsible for all repairs, maintenance and upkeep of the L.eased Premises, including but not limited to emergency repairs of any kind; routine maintenance and repair to keep the Leased Premises in good repair, safe and in compliance with applicable fire, health, building and other life-safety codes; and all repairs and maintenance needed to keep the buildings or structures on the Leased Premises in good con- dition, including (a) the exterior (including windows and doors) and interior structure of the buildings or structures, (b) the roof or roofs, (c) the heating, ventilating and air conditioning systems therein, (d) a11 electrical, plumbing, lighting, mechanical systems, fue suppression equipment, i.e. fire sprinkler system; and (e) all grounds, fences and roads within the I.eased Premises. The foregoing obligations shall bind the LESSEE regazdless of the cause of the damage or condition necessitating the repair or maintenance. [12] Pavments in Case of Default. LESSEE shall pay I,ESSOR 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 L.ease, or to recover possession of said property, whether such action progresses to judgment or not. [13] Surrender of Premises. The L.ESSEE, at the expiration of said term, or any sooner termination of this lease, shall quit peacefully and surrender possession of said property and its appurtenances to LESSOR in as good order and condition as the property was delivered to the LESSEE. [14] Indemnitv. 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, azising out of or by reason of the Lease of the herein described I.eased Premises by the LESSOR to the LESSEE, or the use or condition of the L.eased Premises or as a result of the operations or business activities taking place on the Leased Premises. It is fully understood and agreed that LESSEE is aware of the conditions of the I,eased Premises and leases the same "as is." [15] Holdover. Any holdover after the expiration of the term of this Lease shall be allowed oniy after receiving the written consent of the LESSOR. Said tenancy shall be deemed to be a tenancy only from month-to-month. All other terms and conditions of this L.ease shall be applicable. [16] Pollution and Contaminants. LESSEE agrees to comply with all ordinances, laws, rules and regulations enacted by any govemmental body or agency relating to the control, abatement or emission of air and water contaminants and the disposal of refuse, solid wastes or liquid wastes. LESSEE sha11 beaz all costs and expenses arising from compliance with said ordinances, laws, rules, or regulations and shall indemnify, defend, save and hold harmless LESSOR from allliability, in- cluding without limitation, fines, forfeitures, and penalties azising from the failure by LESSEE to comply with such ordinances, laws, rules or regulations. LESSOR has the right to perform cleanup and chazge the LESSEE as Additional Rent for such costs should the LESSEE fail to comply. n a IO� L � [17] 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 ternunate any prior leases or rental agreements as of the effective date of this lease. [18] Destruction. In the event of damage to or destruction of the L.eased Premises or in the event the premises becomes untenantable or unfit for occupancy due to such damage during the term of this I.ease, LESSOR may at its option: (A) ternunate 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 dam- age 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 Kents to be paid during the restoration period shali be abated in proportion to the percentage of loss and impairment of the use of the I.eased Premises as deternuned by the LESSOR, times the number of days of loss or impairment. [19] Events of Default. The occurrence of any of the following events during the term of this Lease sha11 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 (90) 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 bene6t of creditors; (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 L.ease; or (G) the failure by LESSEE or its surety to dischazge, satisfy or release any lien or lien statement filed or recorded against the L,eased Premises within sixty days after the date of such filing or recarding, whichever date is earlier. � c�q-o`I It is an express covenant and agreement of LESSOR and LESSEE that LESSOR may, at its election, ternunate this Lzase in the event of the occurrence of any of the events described in this paragraph or in pazagraph (22) relating to liens by giving not less than ten days' written notice to LESSEE; and when so terminated, LESSOR may reenter the I,eased Premises. This Lzase and its Leased Premises shall not be treated as an asset of LESSEE'S estate. It is fiuther 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 aze provided in Pazagraph (24) of this Lease. [20] 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 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 by 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. [21] 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 (A) 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; (B) that in connection with the construction of any improvements on said lands and the fumishing of services thereon, no discrimination shall be practiced in the selection of em- ployees and contractors, by contractors in the selection and retention of first tier subcontract- ors, and by first-tier subcontractors in the selection and retention of second-tier subcon- tractors; (C) that such discrimination shall not be pracuced against the public in its access in and use of the facilities and services provided for public accommodations (such as eating, sleeping, rest and recreation) constructed or operated on the I.eased Premises; and (D) that the LES5EE shall use the premises in compliance with all other requirements imposed pursuant to the Saint Paul L.egislative Code Chapter 183. [22] Liens. The LESSEE shall not pernut mechanic's liens or other liens to be filed or established or to remain against the I.eased Premises for labor, materials or services fumished in connection with any additions, modifications, improvements, repairs, renewals or replacements made to the I,eased Premises, or for any other reason; provided that if the LESSEE sha11 first notify the LES50R of its intention to do so and shall deposit in escrow with the LESSOR a sum of money or a bond or inevocable letter of credit acceptable to the LESSOR equal to the amount of the claim of lien, qq_o�1 LESSEE may in good faith contest any such claims or mechanic's or other liens filed or established and in such event may pernut the items contested to remain undischazged 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 es- crow account to promptly pay all such unpaid items and if LESSEE fails to pay from the escrow account, the LESSOR may pay and chazge the LESSEE as Additional Rent. [23] Eminent Domain. In the event the entire I.eased Premises aze taken by eminent domain, or such portion thereof is so taken that in LESSEE'S reasonable judgement it is uneconomic thereafter to restore the L,eased Premises and proceed under the terms and provisions of this L,ease, LESSEE may ternunate this L,ease 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 L,eased Premises. LESSEE hereby waives and releases any claim to or shaze in the Awazd of Compensation for the taking, notwithstanding any other provision of law, this I,ease or any other agreement. LESSEE may to the extent otherwise pernutted in the eminent domain proceeding, remove its own trade fixtures at its own expense. [24] Default Remedies. In the event an Event of Default occurs under puagraph (19) of this Lease, LESSOR may exercise any one or more of the following remedies: (A) reenter and take possession of the Premises without temunation of this Lease, and use its best efforts to ease the Premises to or enter into an agreement with another person for the account of L,ESSEE; (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 Leased Premises, sell all or any part of the Premises at the best price obtainable (provided such sale is pernutted by applic- able law,) such sale to be on such terms and conditions as the LESSOR, in its sole discretion, shall deternune 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 appeaz 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 LE5SOR may, whether or not the I.ease 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 I.ease. qq-o�t No remedy herein conferred upon or reserved to LESSOR is intended to be exclusive of any other available remedy or remedies, but each such remedy shall be cumulative and shail be in addition to every other remedy given under this L.ease 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 I,ESSOR 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. [25] Default of Pavment. LESSEE agrees that, should it default on any payment owing and due to be paid to LESSOR as provided in this agreement, including but not limited to Basic Rent and Additional Rent, then the remaining unpaid balance shall, at the option of the LESSOR, immediately become due. Said LESSEE further agrees that the LESSOR may, at its option and without notice to LESSEE, enter judgment against LESSEE in Ramsey County District Court for the amount of the unpaid balance. And LESSEE does hereby confess judgment in the amount of the unpaid balance due upon default, and does authorize the LESSOR to enter judgment as provided above. LESSEE does hereby agree that the LESSOR, at its option, may enter a judgment, at any time within one year of the time the last payment shall have come due, for the full amount of the unpaid balance due pursuant to the confession of judgment provided herein. [26] Alterations. The LESSEE will not make ariy alterations to the premises without the written consent of the LESSOR, such consent not to be unreasonably withheld. ff the LESSEE desires to make any such alterations, an accurate description shall first be submitted to and approved by the LESSOR and such alterations shail be done by the L,ESSEE at its own expense. Ail 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 L.ESSOR at the end of the Lease period. LESSEE agrees that all alterations will be done in a workmanlike manner and in confo_rn?ance wiLh applicable buiiding 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] Amended. Anything herein contained to the contrary not withstanding, this L.ease may be terminated, and the provisions of this Lease may be, in writing, amended by mutual consent of the parties hereto. qq�0`1 IN WITNESS WHEREOF, the parties hereto have set their hands and seals the day and yeaz in this L,ease first abov�written. LESSOR: Mayor City Clerk Director of Technology & Management Services Department Director City Attorney (Form Approval) LESSEE: Its Its Its � . ..1 j)'�"Y�l �r '�� � "_ _'_ —" �aG1 �zr¢;'<t�y�r.�ron__—' _ ., �:;. � . ,� o � . . a9_�� �' • :� e����,o .: -� a`; i �1 $ AY.[ftIUN �y�MLRAN LHJ0.CN -e!'. ilc�'teJ � �i��� � '" ��I � EXHIBIT"A' `<<x.,,-_" ;5 �'c .� I .:<. ,_; fo %'� �: ' s �� '`? �� � LEASE AGREEMENT PW/3 �-e ` ;i:� ,:.. �' '�,ti i�� z '. •� � �,� " .Y �'', `' • . � r .� " � �'� � . :, i � °Q=` �> \�'` --� "� � ,ei.c�c% - .R't /„•. '' � 06. ` ��.� c -...� �3� i ...F:P �' . C>o � �' \ O acioeG � � i J o • N` \ 7 � ICO � O • • ' <5 \ � �a,tee�! � � l.m... I ��� � ' :�ea `��` . i . I `� � . i ' � � 1 LEA:E �+e,���s t -� • �'�� Te p ,l .sf+a. � ``` a � °�RO.,o H�F�:N � q, `'� Fa. . � � m� � ,� --•�--y-; ----- `�,;. " • i l F % ' ' �.�.i.• G �a' Ce.,f. 1 '^. ^-, F ,A ' s. 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I lt �'�� IG � (� Y � � ..o' : .re• •° � �°. °� � `_-" �<3' I2 � ): c m.• naa ^ � n.o• � w .� . . � � I _� _ � � O �'�: .�' ; �> �i%` ,t,i �� �s� ;-0? ,ae� ;zz� ; j I $ �s 14 �� �c n w' m n zc zs z4 zs ' zz zi zo ie �e � , W . .>.. , . ,.., i '� �o• �o• ,_ ,e .o• �o �e — \ V/•i�ID � /��_y�r � O 3JU]�Tl�� � � //.tf��-G ' � Tf �C TLLS/i 485 : -- , . ,�.,�� , Return copy to: Real Estate Division 140 City Hall oRi��Nat RESOLUTION io ii iz 13 14 is CITY O,�SAINT PAUL, MINNESOTA Resen[ed Referred To Council File # �'�� Green Sheet #� flP Cammittee: Date WHEREAS, since 1960 the City has leased, through L,ease Agreement PW/3, approximately 19,000 squaze feet of vacant land over a sewer pumping station to Health Partners, Inc., formerly Group Health Plan, Inc., for use as a pazking lot for its Como Avenue clinic; and WHEREAS, said I.ease Agreement PW/3 expired on August 31, 1998 and has continued on a month- to-month basis; and WHEREAS, it is the expressed intention of both parties to extend the lease for an additional five year term; and WHEREAS, the Real Estate Division has determined that the agreed upon rent represents the fair mazket value of the property; NOW THEREFORE BE IT RESOLVED, that the proper City officials are hereby authorized and directed to execute Lease Agreement PW/3. Requested by Department of: Adopted by Council: Date \ `i Adopt� n Cerkified by Counci ecretary / By: �.--_ a- Pc��a.,,� / Approved b Mayor: D �.l � 1 r 1� By: �r.c tc Technolo�v & Manaeement Services By: �..�� /v�L.� Direct Form Approved by City Attorney ����� \ sy: ���cvv�-� ( - 21 -!� Mayor for�upmiss��i to Council . � � T.M.S./REAL ESTATE DIVISTON Date: 11/9/98 Green eet Number: 52167 ntact Person and Phone Number: 2 EPARTMENT DI 4 CI1'Y COIINCO, q9.�� DaveNelson � 266-8850 1�Tti'ATTORNEY 2 � i �Y rrYCLE�uc UDGET DIRECTOR FFICE OF FINANCIAL SVCS. ust be on Council Agenda by: 3 YOR (OR ASSISTA 5 ESTATE DIVLSION OTAL # OF SIGNATURE PAGES 1 (CLIP ALL LOCA1`IONS OR GNATURE) CTION REQUESTED: To approve a five year extension of Lease Agreement PW/3 providing 19,000 square Feet of parking space for Health Partners, Inc. at its Como Avenue clinic. Ref: 1. Resolution for consideration; 2. Sample copy of Lease Agreement PW/3. COMMENDATIONS: APPROVE (A) OR RF,JECT (A) ERSONAL SERVICE CONTRACTS M[JST ANSWER THE FOLLOWING: . Has the persodSrm ever worked under a contract for this department? YES NO PLANNA'G COMMISSION A S'CAFF . Has W�s persodfirm ever been a City employee? YES NO crva ssxvrce coiwwssioN . Dces this person/Srm possess a sldll not uormally possessed by any YES NO current City employee? CB COMMITCEE E lain all YES answers on a se arate sheet and attach. UPPORTS WffiCH COUNCIL OBJECTIVE? COUNCIL WARD(S) a DISTRICT PLANNING COUNCIL � 2 HI17A7'ING PROBLEM, ISSiIE, OPPORTl1NITP (Whq Whay 4Vheq W6ere, Why?): This lease agreement expired on August 31,1998. �'„ .� t;e^,.,va�, s VANTAGES IF APPROVED: ....... ... ..,. ,,. t � Health Partners will have sufficient parking at its Como Avenue clinic. � � � � � ��� ISADVANTAGES IF APPROVF.D: ' None _ - = • .;, LSADVANTAGES IF NOT APPROVED: *� f� t Ui_L L. � S�JJ Health Partners would not have sufficient parking space. r fi°�:� � C� .� L � u��� F �� �.e= � v i� orai, aMOVx�r oF TTeaivsacziox: $19,840.00 COST/REVF.NIJE BUDGETED (CIRCLE ONE) YES NO ING SOURCE: �T�A ACTIVI'PP NOMBER: N�A ANCIAL INFORMATION: (EXPLAIN) $19,840 represents space rental over tive year term of agreement. (PW3) Revised June 10. 1998 Authority (C.F. or A.O.) LEASE NO. FINANCB DEPT. LEASE /3 DATE: June 10. 1998 LESSOR: CITY OF SAINT PAUL DEPARTMENT OF PUBLIC WORKS LESSEE: HEALTH PARTNERS. INC. 8100 34th Avenue South - P.O. Box 1309 Minneapolis. Minnesota 55440-1309 qq .o� CITY OF SAINT PAUL STANDARD LEASE AGREEMENT (1] Leased Premises. The LESSOR, in consideration of the payment of the Basic Rent and Additional Rent hereinafter specified to be paid by the LESSEE, and the covenants and agreements herein contained, does hereby lease, demise and let unto LESSEE the premises hereinafter refened to as the "Leased Premises," whose address is: 2500 Como Avenue West and which is legally described as: the south'h of vacated street adjoining and Lots 233 and 24, Block 8, St. Anthony Park North, including only the surface parking area and specifically excluding the pumping station and its access. �2� together with any buildings, fixtures in such buildings, improvements and structures, if any, located thereon; See Exhibit "A", plan or map of leased azea which is incorporated herein by this reference. Term of Lease. This lease shall be in effect for a term commencing and ending on the dates indicated below, unless ternunated earlier by the LESSOR as provided herein. Term (Months/Years) 5 Years Commencing Date September 1, 1998 Ending Date August 31, 2003 [3) Use of Premises. The LES SEE shall use and occupy the Leased Premises for the following purpose: Automobile Parkine and for no other purpose without the prior written consent of LESSOR. [4] Rent. Rent shall consist of Basic Rent and such Additional Rent as may apply. LESSEE shali pay all rent in advance, on the first day of the term of the lease and on the first day of each payment period thereafter as indicated in the Payment Schedule below: (A) Basic Rent Schedule Qq.O`l Total Basic Rent During Lzase Term (Payment Period — Commencing Date —$ per Period) $19,840.00 annual September 1, 1998 $3,968.00 (B) Additional Rent. Additional Rent means all amounts, other than Basic Rent provided for in pazagraph (4-A) above, that LESSEE shall be obligated to pay under this pazagraph or other provisions of this Lease. Additional Rent sha11 include, but is not limited to, the following fees, costs and expenses: (1) �2) (3) (4) all utilities, including water, electric, gas, telephone, sewage and gazbage collection and disposal; costs for the repairs, improvements or alterations required to be made by the LESSEE in pazagraph 11 of this L.ease; all taaces on realty or personalty, general or special; (4) all public rates, dues, charges and assessments, general or special, of any kind upon the I.eased Premises; and property insurance premium and/or uninsured losses as set forth in paragraph (7) of this L.ease. In the event that LESSEE does not make such payments (or any payments required to be paid as Additional Rent), LESSOR may make the payments at its option, and the payments so paid become Additional Rent, and are due and payabie by the LESSEE with the payment of Basic Rent next required after written notice of same to the L,ESSBE by LESSOR. LESSEE sha11 make ali payments of Basic Rent and Additional Rent to LESSOR at the following address: City of Saint Paul - Finance Accountin�Division 210 Citv Ha11- 15 West Kellogg Boulevard - Saint Paul, Minnesota 55102 The applicable account number for City Finance Accounting Code is: 42310 All Basic and Additional Rent shall be payable on the date certain provided herein, or — if no date certain is provided — within 30 days of the billing date. The Lessor shall charge interest of 1.5% per month on any Basic or Additional Rent remaining unpaid beyond the due date as here provided. [5] Taxes. LESSEE shall be responsible for and pay a11 taYes and assessments against the I,eased Premises, except that LESSEE may at its own expense contest and challenge the imposition or amount of any such tax or assessment as prescribed by law; provided, however, that in the event this L.ease is terminated by either party, LESSOR may at its option require the LESSEE to pay such contested ta�ces pending appeal, to place in escrow a sum sufficient to pay said ta�ces, or take other action that will remove said contested taaces as an encumbrance to title or as an exception to the transferability of marketable title to the Leased Premises. 2 qq -o� [6] Right of Entrv. At all times during the term of this lease, the LESSOR shall have the right, by itseif, its agents and employees, to enter into and upon the L.eased Premises during reasonable business hows or, in the event of an emergency, at any time for any legitimate purpose. [7] Insurance. (A) L.ESSOR'S Insurance. 'I'he LESSOR shall acquire and keep in effect during the term of this agreement the following coverages: (1) FIRE AND ALL RISK INSURANCE, on the Leased Premises with limits of not less than N/A shall be purchased by the LESSOR; the LESSEE shall pay, as Additional Rent, the premium for said insurance and, in the event of a claim, any deductible. Said 'ansurance shall name the City of Saint Paul as the insured. With respect to any loss of the LESSOR'S property not covered by insurance, it shall be the responsibility of the LESSEE, within a reasonable time, to pay all costs to repair or replace the damaged property with like kind, such reasonable time to be determined by the L.ESSOR. LESSEE shall be responsible for insurance of its own property. (B) LESSEE'S Insurance. The LESSEE shall acquire during the term of this lease the following coverage: (1) The LESSEE shall be responsible for the self insurance of, or the acquisition of Commercial Property Insurance on, its personal property. (2) COMIvIERCIAL GENERAL LIABILTTY INSURANCE including blanket contractual liability coverage, personai injury liability coverage and broad form property damage liability endorsement with a combined single limit of not less than $750,000 per occurrence shall be purchased by the LESSEE. Such insurance shall: (a) name the City of Saint Paul as additional insured; (b) be primary with respect to LESSOR'S insurance or self-insurance; (c) not exciude explosion, collapse and underground property damage; (d) be written on an "Occurrence" Form policy basis; and (e) not contain an"aggregate" policy limit unless specifically approved in writing by LE5SOR. (3) AUTOMOBII,E LIABILTTY INSURANCE with minimum limits of $750,000 combined single limit and $1,000,000 aggregate, covering hired, non-owned and owned automobiles. (4) WORKERS'COMPENSATIONINSURANCEwithnotlessthanstatutoryminimum limits; and EMPLOYERS' LIABII,TI'Y INSURANCE with minimum limits of at least $100,000 per accident and with an all states endorsement. (5) The LESSEE sha11 supply to LESSOR current insurance certificates for policies required in Paragraph (7). The said certificates shall certify whether or not the agent has errors and omissions insurance coverage. aq _o� (6) The limits cited under each insurance requirement above establish minimums; and it is the sole responsibility of the LESSEE to purchase and maintain additional insurance that may be necessary in relation to this lease. (7) Nothing in this contract shall constitute a waiver by the LESSOR of any statutory limits or exceptions on liability. (8) LESSEE shall place the insurance with responsible insurance companies authorized and licensed to do business in the State of Minnesota and approved by LESSOR, and shall deliver copies of the policies to LESSOR on the date of LESSEE'S execution of this agreement. The policies required in pazagraph (7) shall be endorsed to indicate that the insurer cannot cancel or change the insurance without first giving the LESS012 30 days' written notice. (9) Insurance limits shall be subject to the tort claims liability limits as set forth in chapter 466 of Minnesota Statutes. (C) Waiver of Subro¢ation. LESSOR waives its right of subrogation for damage to the Building, contents therein, loss of use thereof, and/or loss of income, up to the amount of insurance proceeds collected. LESSEE waives its right of subrogation for damage to property in the I,eased Premises, loss of use thereof, loss of income and/or accounts receivable, up to the amount of their respective insurance proceeds collected. The parties shall notify their respective insurance companies, in writing, of the provisions of this pazagraph; and, if either cannot waive its subrogation rights, such party shall immediately notify the other party, in writing. [8] Cancellation or Termination. This lease shall be sub}ect to cancellation and ternunation by LESSOR at any time during the term hereof by giving the LESSEE notice in writing at ninety (90) days, (thirty (30) days for leases with a term of one (1) year or less or any month-to-month tenancies) prior to the date when such ternunation shall become effective. In the event of such termination, and on the effective date of such ternunation, LESSOR shall return any unearned rental paid by the LESSEE without interest. [9] Notice. All notices herein provided to be given, or that may be given by either party to the other, shail 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 LES5EE at the address stated on page (1) and to the LESSOR at the Real Estate Division, 140 City Ha11, Saint Paul, Minnesota 55102. The address to which the notice sha11 be mailed may be changed by written notice given by either party to the other. Nothing herein shail preclude the giving of such address change notice by personal service. [10] Assienment and Sublettin� L.ESSEE 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 L.eased Premises. qq-o'l [ll] Maintenance and Repairs. LESSEE shall, at its own cost and expense, be responsible for all repairs, maintenance and upkeep of the L.eased Premises, including but not limited to emergency repairs of any kind; routine maintenance and repair to keep the Leased Premises in good repair, safe and in compliance with applicable fire, health, building and other life-safety codes; and all repairs and maintenance needed to keep the buildings or structures on the Leased Premises in good con- dition, including (a) the exterior (including windows and doors) and interior structure of the buildings or structures, (b) the roof or roofs, (c) the heating, ventilating and air conditioning systems therein, (d) a11 electrical, plumbing, lighting, mechanical systems, fue suppression equipment, i.e. fire sprinkler system; and (e) all grounds, fences and roads within the I.eased Premises. The foregoing obligations shall bind the LESSEE regazdless of the cause of the damage or condition necessitating the repair or maintenance. [12] Pavments in Case of Default. LESSEE shall pay I,ESSOR 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 L.ease, or to recover possession of said property, whether such action progresses to judgment or not. [13] Surrender of Premises. The L.ESSEE, at the expiration of said term, or any sooner termination of this lease, shall quit peacefully and surrender possession of said property and its appurtenances to LESSOR in as good order and condition as the property was delivered to the LESSEE. [14] Indemnitv. 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, azising out of or by reason of the Lease of the herein described I.eased Premises by the LESSOR to the LESSEE, or the use or condition of the L.eased Premises or as a result of the operations or business activities taking place on the Leased Premises. It is fully understood and agreed that LESSEE is aware of the conditions of the I,eased Premises and leases the same "as is." [15] Holdover. Any holdover after the expiration of the term of this Lease shall be allowed oniy after receiving the written consent of the LESSOR. Said tenancy shall be deemed to be a tenancy only from month-to-month. All other terms and conditions of this L.ease shall be applicable. [16] Pollution and Contaminants. LESSEE agrees to comply with all ordinances, laws, rules and regulations enacted by any govemmental body or agency relating to the control, abatement or emission of air and water contaminants and the disposal of refuse, solid wastes or liquid wastes. LESSEE sha11 beaz all costs and expenses arising from compliance with said ordinances, laws, rules, or regulations and shall indemnify, defend, save and hold harmless LESSOR from allliability, in- cluding without limitation, fines, forfeitures, and penalties azising from the failure by LESSEE to comply with such ordinances, laws, rules or regulations. LESSOR has the right to perform cleanup and chazge the LESSEE as Additional Rent for such costs should the LESSEE fail to comply. n a IO� L � [17] 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 ternunate any prior leases or rental agreements as of the effective date of this lease. [18] Destruction. In the event of damage to or destruction of the L.eased Premises or in the event the premises becomes untenantable or unfit for occupancy due to such damage during the term of this I.ease, LESSOR may at its option: (A) ternunate 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 dam- age 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 Kents to be paid during the restoration period shali be abated in proportion to the percentage of loss and impairment of the use of the I.eased Premises as deternuned by the LESSOR, times the number of days of loss or impairment. [19] Events of Default. The occurrence of any of the following events during the term of this Lease sha11 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 (90) 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 bene6t of creditors; (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 L.ease; or (G) the failure by LESSEE or its surety to dischazge, satisfy or release any lien or lien statement filed or recorded against the L,eased Premises within sixty days after the date of such filing or recarding, whichever date is earlier. � c�q-o`I It is an express covenant and agreement of LESSOR and LESSEE that LESSOR may, at its election, ternunate this Lzase in the event of the occurrence of any of the events described in this paragraph or in pazagraph (22) relating to liens by giving not less than ten days' written notice to LESSEE; and when so terminated, LESSOR may reenter the I,eased Premises. This Lzase and its Leased Premises shall not be treated as an asset of LESSEE'S estate. It is fiuther 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 aze provided in Pazagraph (24) of this Lease. [20] 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 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 by 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. [21] 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 (A) 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; (B) that in connection with the construction of any improvements on said lands and the fumishing of services thereon, no discrimination shall be practiced in the selection of em- ployees and contractors, by contractors in the selection and retention of first tier subcontract- ors, and by first-tier subcontractors in the selection and retention of second-tier subcon- tractors; (C) that such discrimination shall not be pracuced against the public in its access in and use of the facilities and services provided for public accommodations (such as eating, sleeping, rest and recreation) constructed or operated on the I.eased Premises; and (D) that the LES5EE shall use the premises in compliance with all other requirements imposed pursuant to the Saint Paul L.egislative Code Chapter 183. [22] Liens. The LESSEE shall not pernut mechanic's liens or other liens to be filed or established or to remain against the I.eased Premises for labor, materials or services fumished in connection with any additions, modifications, improvements, repairs, renewals or replacements made to the I,eased Premises, or for any other reason; provided that if the LESSEE sha11 first notify the LES50R of its intention to do so and shall deposit in escrow with the LESSOR a sum of money or a bond or inevocable letter of credit acceptable to the LESSOR equal to the amount of the claim of lien, qq_o�1 LESSEE may in good faith contest any such claims or mechanic's or other liens filed or established and in such event may pernut the items contested to remain undischazged 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 es- crow account to promptly pay all such unpaid items and if LESSEE fails to pay from the escrow account, the LESSOR may pay and chazge the LESSEE as Additional Rent. [23] Eminent Domain. In the event the entire I.eased Premises aze taken by eminent domain, or such portion thereof is so taken that in LESSEE'S reasonable judgement it is uneconomic thereafter to restore the L,eased Premises and proceed under the terms and provisions of this L,ease, LESSEE may ternunate this L,ease 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 L,eased Premises. LESSEE hereby waives and releases any claim to or shaze in the Awazd of Compensation for the taking, notwithstanding any other provision of law, this I,ease or any other agreement. LESSEE may to the extent otherwise pernutted in the eminent domain proceeding, remove its own trade fixtures at its own expense. [24] Default Remedies. In the event an Event of Default occurs under puagraph (19) of this Lease, LESSOR may exercise any one or more of the following remedies: (A) reenter and take possession of the Premises without temunation of this Lease, and use its best efforts to ease the Premises to or enter into an agreement with another person for the account of L,ESSEE; (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 Leased Premises, sell all or any part of the Premises at the best price obtainable (provided such sale is pernutted by applic- able law,) such sale to be on such terms and conditions as the LESSOR, in its sole discretion, shall deternune 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 appeaz 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 LE5SOR may, whether or not the I.ease 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 I.ease. qq-o�t No remedy herein conferred upon or reserved to LESSOR is intended to be exclusive of any other available remedy or remedies, but each such remedy shall be cumulative and shail be in addition to every other remedy given under this L.ease 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 I,ESSOR 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. [25] Default of Pavment. LESSEE agrees that, should it default on any payment owing and due to be paid to LESSOR as provided in this agreement, including but not limited to Basic Rent and Additional Rent, then the remaining unpaid balance shall, at the option of the LESSOR, immediately become due. Said LESSEE further agrees that the LESSOR may, at its option and without notice to LESSEE, enter judgment against LESSEE in Ramsey County District Court for the amount of the unpaid balance. And LESSEE does hereby confess judgment in the amount of the unpaid balance due upon default, and does authorize the LESSOR to enter judgment as provided above. LESSEE does hereby agree that the LESSOR, at its option, may enter a judgment, at any time within one year of the time the last payment shall have come due, for the full amount of the unpaid balance due pursuant to the confession of judgment provided herein. [26] Alterations. The LESSEE will not make ariy alterations to the premises without the written consent of the LESSOR, such consent not to be unreasonably withheld. ff the LESSEE desires to make any such alterations, an accurate description shall first be submitted to and approved by the LESSOR and such alterations shail be done by the L,ESSEE at its own expense. Ail 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 L.ESSOR at the end of the Lease period. LESSEE agrees that all alterations will be done in a workmanlike manner and in confo_rn?ance wiLh applicable buiiding 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] Amended. Anything herein contained to the contrary not withstanding, this L.ease may be terminated, and the provisions of this Lease may be, in writing, amended by mutual consent of the parties hereto. qq�0`1 IN WITNESS WHEREOF, the parties hereto have set their hands and seals the day and yeaz in this L,ease first abov�written. 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