87-738 WHITE - CITV CIERK
PINK - FINANCE . . G I TY OF SA I NT PAIT L Council p�_�� p/
CANARV - DEPA/7TMENT n
BIUE - MAVOR File NO. `� 0
Return copy to: COU 'l Resolution
Valuations - Room 218
(Blomquistres) (RN) ' I C�,
Presented By
! �
Referred To Committee: Date
Out of Committee By Date
RESOLVED, that the Council of the City of Saint Paul does
hereby authorize and direct the proper City Officials to execute
on behalf of the City of Saint Paul a three (3) year lease
agreement commencing on August 15, 1987 and extending through
August 14, 1990 between John Blomquist, Inc. (also referred to as
Jebco Properties, Inc.) and the City of Saint Paul for 7, 061
square feet more-or-less located on the ninth floor of the
Commerce Building at 8 Fourth Street to be used for the Cable
Division and Risk Management Division.
Consideration for the use of the space shall be $227,717.28
plus additional rent for the second and third years which will
include a Cost of Living Increase based on the Consumer Price
Index and lessee's proportionate share of any increase in real
estate taxes exceeding the taxes paid in 1987. The City of Saint
Paul will also be responsible for the electrical usage in the
leased premises.
BE IT FURTSER RESOLVED, that the proper City Officials are
also hereby authorized to execute a sub-lease between the City of
Saint Paul and the County of Ramsey for the use of a portion of
the above referenced leased area subject to substantially the
same terms as the lease between the City and John Blomquist, Inc.
COUNCILMEN Requested by Department of:
Yeas pfeW Nays /
Nicosia K� [n Favor Finance & Mana ement S rv' es
Rettmaw�� t
Scheibel � �_
Sonnen _ Agal[]St B }Dire
Tedesco i�
Wilson y.l`�'� �
Adopted by Council: Date MQY � � ��V� Form Ap ov y City A orne ��
C t 2�
Certified a-•ed by Council .ecretary BY
gy.
Appro d y :Navor. Date AY 2 � ��i Appr ed by Mayor for Sub ayaCil
�
- — y
�ti'.�€��}� i'�?�i� �? �J �J (
gina.,�p r� M�„agemer�tt Services DEPAR?MENT - V' "���`3� �� _ 0�g�2
nave Nelson . _ CONTACT
298-5317 PHONE �
Avril 15, 1987 DATE . � ,r� I, Q
� ,
ASSIGN NIJI�ER: FOR R�UTING ORDER (Clip A11 Locations for Siqnature) :
[kpartment Director 3 Director of Management/Mayor
2,_ Finance and Management Services Direct� � 4 City Clerk.
Budget Director � 5 valuat�ons-
� City Attorney . _
I�IAT WILL BE ACHLEYED BY TAKING ACTION ON THE ATTACHED �IItTERIALS? (Purpose�
Rationale) :
Authority to'execute a three year lease agreement (FMS/10) between the City of Saint Paul and
the Jebco Properties-, Inc. on behaTf of the Cable and Risk Ma.nage.ment Divisions at 8- Fourth
Street, 9th Floor (Commerce Building) and authority to execute a sub-lease agreement (FMS/l0A)
between the City of Saint Paul and the County of Ramsey.
�OST/BENEFIT, BUDGETARY AND PERSONNEL IMPACTS ANTICIPATED: �
The rent is a base of $227,717.28 plus a cost of living increase and the City's share of the
tax increase over 1987 taxes for the second and third years. Also, the City will pay for its
electrical usage. � '
The compensation will be reduced by approximately 20y du� to a sub-lease between the City and
the County of Ramsey.
FII�ANCING SOURCE AND BUDGET ACTIVITY NUMBER CHARGED OR CREDITED: (Mayor's signa-
ture not re-
Total �mount of �Transaction: quired if under
Funding Source: CABLE RISK MGMT. � $10,OQ0)
31121 - 282 (rent) 01370-282 (rent) RECE
Activity Number• - 371 (elect.) -371 (elect.) �- n/E�
• RECdw� APR 2 3 1987
A�TTACHMENTS (List and Number All Attachments) : �
OFFICE OF THE Dt,
l. Council Resolution far �signature. APR �7 �987 DEPq12TMENT pF F1'�n�jcT��
2. Sample, copy of Lease Agreement for review. Aryp Al��� �
. . - �NAGEMEN7 SERV1;,,.3
_ MAYOR'S OfFICE
DEPARTMENT REVIEW CITY ATTORNEY REVIEW
�Yes Plo C�auncil Resolution Required? � Resolution Required? Yes No
�Yes No Insurance Required? • Insurance Sufficfent? Yes No
� Yes �No In_surance Attached:
(SEE •REVERSE SI� FOR INSTRUCTIONS)
�evised 12/84
� - , ��%I-73�
LBASB AGRBE1rIBNT F!!S/10
TBIS LB1�iSB, made this day of ,19 , by
and between JOHN E. BLOMQIIIST, INC. (also referred to as JEBCO
PROPERTIES, INC.) hereinafter called "Lessor", and CITY OF SAINT
PAIIL (DEPARTMENT OF FINANCE) hereinafter called "Lessee'
WI?t�BSSBSH: That Lessor, in consideration of the rents and
convenants hereinafter mentioned, does hereby demise, lease and
let unto Lessee, and Lessee does hereby hire and take from the
Lessor the following described premises located in 8 4th St. , 9th
Floor (Com merce Building) , County of Ramsey, and State of
Minnesota namely:
That portion of the premises located on the entire 9th floor
consisting of approximately 7,061+ square feet, in accordance
with Exhibit "A" attached hereto and made a part hereof.
l. TBRM AHD QSB. To have and to hold said premises without
any liability or obligation on the part of said Lessor of making
any alterations, improvements or repairs of any kind on or about
the said premises except as provided herein in Exhibit "B", for
the term of three years, from the 15th day of August, 1987
and continuing to and including the 14th day of August, 1990,
unless extended or sooner terminated as hereinafter provided, for
the purpose of office space only.
Lessor hereby grants to Lessee an option to let the subject
premises for a period of thzee years from and after the
expiration of the present term of this lease. In order to
exercise this option, Lessee must give Lessor written notice
90 days prior to the expiration of the present term of this
lease. The terms of the lease for the option period shall
be identical to the terms of this lease except that Lessor
shall not be obligated for any further leasehold
improvements, there shall not be any additional options to
renew, and the rent shall be at a rate to be negotiated.
2. POSSBSSION. Except as hereinafter provided, Lessor shall
deliver possession of the leased premises in the condition
required by this Lease on or before the date hereinabove
specified for commencement of the term, subject to unavoidable
delays beyond Lessor's control, but delivery of possession prior
to such commencement date shall not affect the expiration date of
this Lease. Lessor shall have no responsibility or liability for
loss or damage to fixtures, facilities, or equipment installed or
left on the premises, unless caused by the negligence of Lessor,
its agent or employees. If said premises shall not be anailable
to Lessee for occupancy on the first day of said term, Lessor
shall not be liable to Lessee for damages but a pro rata part of
the rent shall be abated until the premises are ready for
� " � ���;--7_ -�J��
to correct the condition the Lessor may, at its option, put or
cause the same to be put in the condition and state of repair
agreed upon, and in such case, the Lessee, on demand, shall pay
the cost thereof. Lessee agrees that the use of the leased
premises and the common areas shall be subject to such Rules and
Regulation as may be reasonably promulgated by Lessor for the
comfort and convenience of the owners, occupants and visitors of
said building.
7. DNLL�IFQL DSB. Lessee agrees not to commit or permit any
act to be performed on the premises or any omission to occur
which will be in violation of any statute, regulation or
ordinance of any governmental body or which will increase the
insurance rates on the building or which will be in violation of
any insurance policy carried on the premises by the Lessor. The
Lessee shall not disturb other occupants of the building by
making any undue or unseemly noise or otherwise and shall not do
or permit to be done in or about the leased premises anything
which will be dangerous to life or limb.
8. LBSSOR'S ACCBSS. The Lessor, its employees and agents
shall have the right to enter the leased premises at all
reasonable times for the purpose of inspection, cleaning,
repairing, altezing, or improving the premises or said building,
or to exhibit the premises to prospective tenants, purchasers or
others.
9. ALTBRA?IONS. Lessee will not make any alterations,
additions, or improvements in oz to the leased premises or add,
disturb or in any way change any plumbing or wiring herein
without the written consent of the Lessor as to the character of
the alterations, additions or improvements to be made, the manner
of doing the work and the persons to do the work.
10. BSSIGNMBNT AND SIIBLS??IHG. Lessee shall have the right to
sublet any portion of the leased premises to Ramsey County for
the purpose of office space, subject to substantially the same
terms and conditions as those included in this lease.
11. DAKAGB BY FIBB OB OTH$R CASQALSY. If fire or other
casualty shall render the leased premises untenable this Lease
shall terminate forthwith, and any prepayments of rent shall be
refunded by the Lessor pro rata: pronided, however, that if the
leased premises can be repaired within ninety (90) days from the
date of such event, then at Lessor's option, by notice in writing
to Lessee, mailed within thirty (30) days after such damage or
destruction, this Lease shall remain in full force and effect,
but the rent .for the period during which the premises are
untenable shall be abated pro rata.
12. �IAIVBR OF SQBROGASIOH. Lessor and Lessee hereby mutually
� .. . ��-7- y3 �
waive as against each other any claim or cause of action for any
loss, cost, damage or expense as a result of the occurrence of
perils covered by the Minnesota Standard Fire Insurance Policy
and extended coverage endorsements .
13. BMINB�iT DOI�AIIT. If the leased premises are taken by any
public authority under the power or threat of eminent domain,
then the term of the Lease shall cease as of the day possession
shall be taken by such public authority, and Lessor shall make a
pro rata refund of any rent that may have been paid in advance.
All damages awarded for such taking shall belong to and be the
property of Lessor, irrespective of the basis upon which they are
awarded.
14. SIIRRSNDBR. On the last day of the term of this Lease or on
the last day of the extension period if any extension is made as
provided in Paragraph 1 of this lease or on any sooner
termination of this lease, Lessee shall peaceably surrender the leased
premises in good condition and repair consistent with Lessee's
duty to make repairs as provided in Paragraph 6 hereof. On or
before the last day above referenced, Lessee shall at its
expense remove all of its equipment from the leased premises, and
any property not removed shall be deemed abandoned. All
alterations, additions and fixtures, other than Lessee's
equipment which have been made or installed by either Lessor or
Lessee upon the leased premises shall remain as Lessor's property
and shall be surrendered with the leased premises as a part
thereof. If the leased premises be not surrenc]ered at the end of
the lease term, extension term or sooner termination
thereof, Lessee shall indemnify Lessoz against loss or liability
resulting from delay by Lessee in so surrendering the premises,
including, without limitation, claims made by any succeeding
tenant founded on such delay. Lessee shall promptly surrender all
keys for the leased premises to Lessor at the place then fixed
for payment of rent and shall inform Lessor of combinations on
any locks and safes on the leased premises.
15. HOLDI�iG OVBR. In the event Lessee remains in possession
of the premises herein leased after the expiration of this lease
or it's extension period and without the execution of a new lease,
it shall be deemed to be occupying said premises as a tenant from
month-to-month, subject' to all the conditions, provisions and
obligations of this lease insofar as the same can be applicable
to a month-to-month tenancy.
16. NOH-P�YPiBNT OF R$HT:DEFAIILTS. If any one or more of the
following occurs, (a) a rent payment from Lessee to Lessor shall
be and remain unpaid in whole or in pazt for more than ten (10)
days after same is due and payable; (b) Lessee shall violate or
default any of the other covenants, agreements, stipulations, or
conditions hezein, and such violation or default shall continue
for a period of ten (10) days after written notice from Lessor
. „ ��-��- y�
�
of such violation or default; or (c) if Lessee shall be adjudged
bankrupt or file a petition in bankruptcy or for any arrangement
under the Bankruptcy Act or become insolvent or have appointed a
receiver of its property: then it shall be optional for Lessor to
declare this Lease forfeited and the said term ended, and to re-
enter said premises with or without process of law, using such
force as may be necessary to remove all persons or chattels
therefrom , and Lessor shall not be liable for damage by reason of
such re-entry or forfeiture. Notwithstanding re-entry by Lessor
or forfeiture or termination of this Lease, the liability of
Lessee for the rent provided for herein shall not be relinquished
or extinguished for the balance of the term of this Lease. Lessee
shall pay, in addition to the rentals and other sums agreed to be
paid hereunder, such additional sums as the court may adjudicate
reasonable as attorney's fees in any suit or action instituted by
Lessor to enforce the provisions of this Lease; or the collection
of the rentals due Lessor hereunder .
17. DBFAIILT OF LSSSOB. Lessor shall not be deemed to be in
default under this lease until Lessee has ginen Lessor written
notice specifying the nature of the default and Lessor does not
cure such default within thirty (30) days after receipt of such
notice or within such reasonable time thereafter as may be
necessary to cure such default where such default is of such a
character as to reasonably require more than thirty (30) days to
cure.
18. COVBNAPTS TO HOLD HARI+ILBSS. Except in the case of
negligence of Lessor, its agents or employees, Lessee agrees to
hold Lessor harmless for any liability for damages to any person
or property in or about the leased premises. Lessor shall not be
liable to Lessee, its agents, employees, representatives,
customers or invitees for any personal injury, death, or damage
to property caused by theft, burglary, water, gas, electricity,
fire or for any other cause occurring on or about the leased
premises except in the case of negligence of Lessor, its agents or
employees. All property kept, stored, or maintained in the leased
premises shall be so kept, stored, or maintained at the sole
risk of Lessee. Lessee agrees to pay all sums of money in respect
of any labor, services, materials, supplies or equipment
furnished or alleged to have been furnished to Lessee in or
about the leased premises, and Lessee shall not permit any
mechanic's, materialmen's or other lien to be filed against the
leased premises. Lessor shall have the right to post and maintain
on the leased premises, notices of non-responsibility under the
laws of Minnesota.
19. SIIBORDiN�TIOH. Lessee agrees that at Lessor's election,
this Lease shall be subordinate to any land lease, mortgages or
trust deeds now on or hereafter placed upon the leased premises
and to any and all advances to be m ade thereunder, and to the
� �-�_ y.��'
.. . �
interest thezeon, and all renewals, replacements, and extensions
thereof. Lessee hereby appoints Lessor as it attorney-infact to
execute such documents as may be required to accomplish such
subordination.
20. GS�IBRAL. This Lease does not create the relationship of
principal and agent or of partnership or of joint venture or of
any association between Lessor and Lessee, the sole relationship
between Lessor and Lessee being that of landlord and tenant. No
waiver of any default of Lessee hereunder shall be implied from
any omission by Lessor to take any action on account of such
default if such default persists or is repeated, and no express
waiver shall affect any default other than the default specified
in the express waiver and that only for the time and to the
extent therein stated. Each term and each provision of this Lease
performable by Lessee shall be construed to be both a convenant
and a condition. The marginal or topical headings of the several
paragraphs and clauses are for convenience only and do not
define, limit or construe the contents of such paragraphs or
clauses. All preliminary negotiations are merged into and
incorporated in this Lease. This Lease can only be modified or
amended by an Agreement in writing signed by the parties hereto.
All provisions hereof shall be binding upon the heirs, successors
and assigns of each party hereto. Any notice required to be
serve3 in writing hereunder shall be delivered personally or sent
by registered mail to Lessee at the address of the leased
premises and to the Lessor at the address then fixed f or payment
of rent. Any and all indebtedness owing by the Lessee to the
Lessor pursuant to the terms of this Lease which remains unpaid
for a period of thirty (30) days after it first becomes due and
payable shall bear interest from and after the lapse of such
thirty (30) day period at the rate of fifteen per cent (15�) per
annum.
21. IBSIIBAHCB RSQQIxBli$N?. Lessor shall maintain and issue
certification of insurance to the lessee during the term of this
lease and upon the leased premises certain insurance coverage
which is described as follows:
(a) WORRERS' COMPENSATION INSIIRANCE with coverage not
less than the statutory limits and EMPLOYERS
LIABILITY INSURANCE with limits of not less than:
$100, 000 PER ACCIDENT
(b) COMPREHENSIVE GENERAL LIABILITY INSURANCE
including blanket contractual liability coverage
and personal liability coverage with a combined
single limit of not less than:
$ 600 , 000 PER OCCIIRRENCE
$1,000 , 000 AGGREGATE
. . . � � ��__7���'
Such insurance shall ' (1) name the City of Saint
Paul and Rarasey County its elected an appointed
officers as additional insureds; (2) be primary
with respect to any Lessee's insurance or self-
insurance program; And (3) contain a Standard Cross
Liability Endorsement.
(c) PROPERTY INSURANCE including fire, extended
coverage and all-risk insurance covering the
demised premises and all property located herein
belonging to LESSOR, in an amount equal to 908 of
the full replacement and reconstruction cost of the
property
� � � ���- y��
. �
IN WITNBSS iiHEREOF, the parties hereto have executed this
Lease the day and year first above written.
In the presence of LESSOR:
JOHN F,�. $LO�[QUIST�� T`NC.
}
�
$y
I�s
Y�
And
T � . - -
Its
In the presenGt of ,,,``;�LESSEE:
?:;- City of Saint Paul
By
� ` � ZtsMapor
�5
�F' ' And
��t I�s Ci�y Clerk
r: And
Its Director Of
� Finance � Management
�� � Services
(Alease)
. . . - � r��
. . � .� . . C'�
. _ �. .
� �
� . .
• s �
2 L
t �0
Z P •
�C y
1N-1 �p �
iL M
? '
,,. .. .
N � . , .. . , _ :�s,. /� F
z " hao` � •
� - ��v :
C� � • -
h� .=
i
�
� �e" r
� � .
� y �
!. F �l j ±� !
a � ``' ' � X, .
w v c�'. :�:;:.. . .
cz � '
< � � �
� � � .
� �.. o . .
¢ w �,
� �
� � .
� -
g.
_ �
s '
t-� � 1
h@�1 � ` ' � , '
C
4yC2 � L 2
L O � • �
G�
h � � 6
: Z
2 � -
F
O ---—� . i ll�:i:e..- _ tV"al
�. Z
� �
: ! m
i
� k7 E+
� �
- Z � �
� f�ai Z
.� X Z �
�
� � � Y
� �
L � �
� • ' . $ � �.
J `p � '•-••
r�
m � _ m t��. � .
c�.� v�i ' - � c<.� t�.�
. N � , .
_ ,'Z �i .
• . • �;;
• • .
. .': - . =� .
. �-
_ ' '- . (���73 �
.
EXHIBIT •'B"
Addendum to Lease for the 9th floor, Commerce Building, St. Paul, MN, dated
February 17, 1987, by and between John E. Blomquist, Inc. (Lessoz) and the
City of St. Paul (Lessee) .
ARTICLE 1
Beginning the second year of the lease, in addition to the fixed rent provided
for in Article �3 of the Lease, the Lessee shall pay, as additional rent, a
Cost of Living Increase based on the increase in the National Consumer Price
Index.
a. "National Consumer Index" shall mean the Monthly Consumer Price Index for
All Urban Consumers, New Series, all items (1967=100) as published by the
United States Department of Laboz, Bureau of Labor Statistics, each year
for the month of July;
b. "Base Index" shall mean the National Consumer Price Index for July 1987;
c. "Comparison Index" shall mean the National Consumer Price Index for each
July, during the term, following the date of this lease;
d. "Percentage of Change" shall mean the Comparison Index less the Base Index
quantity divided by the Base Index.
In the event the Comparison Index for any one year differs from the Base Index,
then the rent specified in this lease ( Annually) shall
be increased for the lease year immediately following the Comparison Zndex
year, in the amount determined bq the Percentage of Change. This percentage
increase shall not exceed SZ for only one lease year.
ARTICLE 2
Included in the fixed rent from August 15, 1987 to December 3I, 1987 is the
Lessee's pro zata share of the real esiate taxes. Co�encing on January 1, 1988
and each calendar year thereafter, Lessee shall pay as additional rent its
pro rata share of any increase in zeal estate taxes over and above that amount
payable in 1987 for the Lessor's building.
Lessee's proportionate share of any increase shall be based upon the percentage
of the number of square feet in Lessee's demised premises to the total number
of square feet in the entire building.
Additional rent payable hereunder shall be calculated in the same manner as
soon as possible after January 1 of each year.
One—twelfth of the additional rent payable as a result of these real estate
tax increases, if any, shall be payable monthly together uith the fixed rent.
Any increases shall be foz a full twelve month period except in the final year
of the lease, in which case the additional rent payable shall be spread over
the remaining months of the lease and in equal fractional parts.
8
• � -. . C�� �r--`7��
, ,.
. �
EXHIBIT "B" CONT.
.�.;, . .
ARTICLE 3
The Lessee shall pay as additional rent the ex$,CL abnthl�t electricity �'fiarge
for the leased pzemises. Either the Lessoz orz ssee ma�e initiate at �rny time
an audit and, if necessarq, a recalculation of �tional tent,:based on changes
in Lessee's electricity consumption or change � Lessor'a e2�tricity costs.
The Lessee shall also pay the cost of � elec ' c lamps a`nd Lessor shall,
at its own expense, install al�'��plac�cnt el �' ric lamps due to failure of
any kind. °
{:.,
�>
�
�� „
�, .r�� :�;�.
<�'` I.:
In the preserice of ��'° LESSOR:
•?..
. ';�:. . . . .
JOAN � B�.OMQUIST, IpC.
�
- ` $�=�,�"r.��' r r
It�'`.
And
�-
��..
Its
In the presence of LESS�:
; �GI?Y OF SAINT PAUL
"'ca B
,.---•_..� Y
,��
t�;,_
Its
_�„. .Y.....
� �� �F I�
� ! �MI
�`S I
'r'.. � .... �. ,�'.'� . .
�And
��,�F
� Its
r
�:
9